Nutrien Delivers Stable Earnings in a Challenging Year

Nutrien Ltd. (Nutrien) (NYSE, TSX: NTR) announced today its 2019 fourth-quarter and full year 2019 results, with a net loss from continuing operations of $48 million($0.08 diluted loss per share) in the fourth quarter of 2019. Fourth-quarter adjusted net earnings was $0.09 per shareand adjusted EBITDA was $664 million. Adjusted net earnings (total and per share amounts) and adjusted EBITDA, together with the related annual guidance, Potash adjusted EBITDA, free cash flow and free cash flow including changes in non-cash working capital are non-IFRS financial measures. See the “Non-IFRS Financial Measures” section for further information.

“Nutrien’s earnings held up well in 2019 and we generated strong free cash flow in a very tough agriculture market. We executed on our strategic plan, growing our Retail business with several strategic acquisitions and made great strides with the roll-out and adoption of our leading Retail digital platform and financial tools. Agriculture fundamentals are strengthening and grower sentiment is positive. We expect higher planting and favorable farm economics to support strong North American crop input demand in 2020,” commented Chuck Magro, Nutrien’s President and CEO.

“Our business is designed to provide stability in times of market weakness, with significant leverage through a recovery in fertilizer markets. We remain focused on optimizing our network, allocating capital to grow our Retail business and leading our industry in returning capital to shareholders,” added Mr. Magro.

Highlights:

• Nutrien generated $2.2 billion in free cash flow in 2019, up 9 percent over last year, and $2.6 billion in free cash flow including changes in non-cash working capital in 2019, which is over three times higher than in 2018.
• Nutrien recorded a number of charges totaling $128 million this quarter related to mergers, acquisitions and impairments, the largest associated with the rebranding of the Australian retail business after the Ruralco acquisition.
• Retail performed well as EBITDA increased 8 percent in the fourth quarter and 2 percent in the full year 2019, compared to the same periods in 2018. Nutrien’s sales, service and supply chain strength helped to grow market share and we expect strong EBITDA growth in 2020 due to contributions from acquisitions, improved market conditions and organic growth.
• Potash EBITDA was down 62 percent in the fourth quarter of 2019 compared to the same period in 2018 due to lower sales volumes and lower net realized selling prices caused by a temporary reduction in global demand, the impact of production downtime and the Canadian National Railway labor strike. 2019 potash adjusted EBITDA was similar to 2018 as higher average net realized selling prices were mostly offset by lower sales volumes.
• Nitrogen EBITDA in the fourth quarter of 2019 was 19 percent lower than the same period last year due primarily to lower ammonia sales volumes and a lower nitrogen net realized selling price. Nitrogen EBITDA in 2019 increased 2 percent compared to 2018 as lower natural gas costs in North America more than offset higher natural gas costs in Trinidad, and higher earnings from equity-accounted investees and the impact of IFRS 16 more than offset lower ammonia sales volumes and lower nitrogen net realized selling prices.
• In the fourth quarter of 2019, Nutrien increased the maximum number of common shares that may be acquired under its current normal course issuer bid (NCIB) to approximately 7 percent of the outstanding common shares. Nutrien repurchased an aggregate of 36 million common shares in 2019 and 72 million common shares over the past 24 months.
• Nutrien full-year 2020 adjusted net earnings per share and adjusted EBITDA guidance is $1.90 to $2.60 per share and $3.8 to $4.3 billion, respectively.

Market Outlook

Agriculture and Retail

• Recent US/China trade progress has underpinned positive sentiment among US growers as agricultural exports to China are expected to improve significantly both in the short and medium term.
• The US Department of Agriculture (USDA) projects 2019/2020 global grain inventories outside of China to be at six-year lows. US crop input demand in 2020 is expected to be supported by an additional 14 million acres, or about a 6 percent increase, in planted acreage.
• We expect demand for potash in Southeast Asia will be supported by the significant improvement in palm oil prices since mid-2019.
• Despite improved agricultural fundamentals in most key markets, we continue to monitor the possible impacts of the Coronavirus, drought conditions in Australia and the African Swine Fever.

Crop Nutrient Markets

• Global potash prices declined in 2019 as customers in key offshore markets drew from inventories built by strong first-half 2019 shipments, while demand declined in North America due to adverse weather and in Southeast Asia due to weak palm oil prices. Global potash producers announced the equivalent of over 3 million tonnes of estimated production curtailments to rebalance supply. We estimate global potash deliveries were approximately 64.5 million tonnes in 2019, down significantly from the 66.7 million tonnes in 2018.

We believe potash production curtailments lowered inventory at the producer level, while continued grower consumption lowered distributor inventory in key markets outside of China. We expect global potash demand to rebound in 2020, driven by increased planting acreage in North America, a rebound in applications in Indonesia and Malaysia, lower beginning inventories and strong affordability. We estimate global potash deliveries in 2020 will be between 66 to 68 million tonnes in 2020, similar to the record global delivery levels of 2018.

• Global nitrogen prices declined in 2019, due to reduced demand in North America driven by challenging weather conditions and lower feedstock prices in some key producing regions. We expect nitrogen fundamentals to improve in 2020, supported by higher North American planting, stable demand in other key regions and limited new global capacity.
• Dry phosphate fertilizer prices have recently improved after reaching historically low levels in 2019, but they continue to be impacted by increased supply from Morocco and Saudi Arabia. Some global phosphate producers have announced curtailments to rebalance supply and the Coronavirus could reduce Chinese export availability in the first quarter of 2020, however, we expect low raw material costs will be a headwind to a significant market recovery.

Financial Outlook and Guidance

Based on market factors detailed above, we are issuing 2020 adjusted net earnings guidance of $1.90 to $2.60 per share and adjusted EBITDA guidance of $3.8 to $4.3 billion.

All guidance numbers, including those noted above and related sensitivities are outlined in the tables below.

2020 Guidance Ranges 1	Low			High
Adjusted net earnings per share 2	$	1.90		$	2.60
Adjusted EBITDA (billions) 2	$	3.8		$	4.3
Retail EBITDA (billions)	$	1.4		$	1.5
Potash EBITDA (billions)	$	1.3		$	1.5
Nitrogen EBITDA (billions)	$	1.2		$	1.4
Phosphate EBITDA (millions)	$	180		$	250
Potash sales tonnes (millions) 3		12.3			12.7
Nitrogen sales tonnes (millions) 3		11.0			11.6
Depreciation and amortization (billions)	$	1.8		$	1.9
Effective tax rate on continuing operations		23	%		25	%
Sustaining capital expenditures (billions)	$	1.0		$	1.1
	Impact to
		Adjusted			Adjusted
2020 Annual Assumptions & Sensitivities 1		EBITDA			EPS4
$1/MMBtu change in NYMEX5	$	165		$	0.21
$20/tonne change in realized Potash selling prices	$	205		$	0.25
$20/tonne change in realized Ammonia selling prices	$	40		$	0.05
$20/tonne change in realized Urea selling prices	$	65		$	0.09
2020 FX Rate CAD to USD			1.30
2020 NYMEX natural gas ($US/MMBtu)			$2.25
1 See the “Forward-Looking Statements” section. 2 See the “Non-IFRS Financial Measures” section. 3 Manufactured products only. Nitrogen excludes ESN® and Rainbow products. 4 Assumes 574 million shares outstanding. 5 Nitrogen related impact.

Consolidated Results

	Three Months Ended December 31						Twelve Months Ended December 31
(millions of US dollars)	2019		2018		% Change		2019		2018		% Change
Sales	3,442		3,762		(9)		20,023		19,636		2
Freight, transportation and distribution	172		189		(9)		768		864		(11)
Cost of goods sold	2,256		2,314		(3)		13,814		13,380		3
Gross margin	1,014		1,259		(19)		5,441		5,392		1
Expenses	951		713		33		3,579		4,978		(28)
Net (loss) earnings from continuing operations	(48)		296		n/m		992		(31)		n/m
Net earnings from discontinued operations	-		2,906		(100)		-		3,604		(100)
Net (loss) earnings	(48)		3,202		n/m		992		3,573		(72)
EBITDA 1	499		944		(47)		3,661		2,006		83
Adjusted EBITDA 1	664		924		(28)		4,025		3,934		2
Free cash flow ("FCF") 1	138		403		(66)		2,157		1,975		9
FCF including changes in non-cash working capital 1	2,068		1,647		26		2,647		837		216
1 See the "Non-IFRS Financial Measures" section.

Our fourth-quarter net loss from continuing operations was caused by the impact of a temporary slow down in global fertilizer demand that more than offset a strong performance by Retail. 2019 net earnings from continuing operations increased compared to 2018 due to solid operational results, the continued benefit of Merger related synergies and operational improvements and a non-cash impairment of our New Brunswick potash facility in 2018.

Our net earnings from discontinued operations in 2018 was related to the required divestiture of certain equity investments in connection with the Merger.

Segment Results

In the first quarter of 2019, our Executive Leadership Team reassessed our product groupings and decided to evaluate the performance of ammonium sulfate as part of the Nitrogen segment, rather than the Phosphate and Sulfate segment as previously reported in 2018. Effective January 1, 2019, we have four reportable operating segments: Retail, Potash, Nitrogen and Phosphate. Comparative amounts presented on a segmented basis have been restated accordingly. We also renamed our “Others” segment to “Corporate and Others”.

Detailed descriptions of our operating segments can be found in our 2018 Annual Report dated February 20, 2019 in the “Operating Segment Performance & Outlook” section.

Our discussion of segment results set out on the following pages is a comparison of the results for the three and twelve months ended December 31, 2019 to the results for the three and twelve months ended December 31, 2018, respectively and unless otherwise noted. See Appendix A for a summary of our results for the twelve months ended December 31, 2019 by operating segment.

Retail

	Three Months Ended December 31
(millions of US dollars, except	Dollars						Gross Margin						Gross Margin (%)
as otherwise noted)	2019		2018		% Change		2019		2018		% Change		2019		2018
Sales
Crop nutrients 1	907		917		(1)		186		184		1		21		20
Crop protection products	635		644		(1)		281		270		4		44		42
Seed	99		103		(4)		60		56		7		61		54
Merchandise 2	211		142		49		44		27		63		21		19
Services and other	319		211		51		165		125		32		52		59
	2,171		2,017		8		736		662		11		34		33
Cost of goods sold 2	1,435		1,355		6
Gross margin	736		662		11
Expenses 3	667		580		15
Earnings before finance costs and taxes ("EBIT")	69		82		(16)
Depreciation and amortization	162		132		23
EBITDA	231		214		8
1 Includes intersegment sales. See Note 2 to the unaudited condensed consolidated financial statements as at and for the three and twelve months ended December 31, 2019 (''condensed consolidated financial statements''). 2 Certain immaterial figures have been reclassified or grouped together for the three months ended December 31, 2018. 3 Includes selling expenses of $668 million (2018 – $571 million).

• EBITDA was higher in the fourth quarter and full year of 2019 as sales, service and supply chain strength helped to grow our market share and margins. EBITDA in both periods also benefited from strong US and Australia results and the impact from adoption of IFRS 16, which more than offset weather-related challenges in Canada. Gross margin and gross margin percentage increased in the fourth quarter and full year 2019 as a result of optimization initiatives and strategic purchasing. Selling expenses as a proportion of sales in the full year 2019 were similar to the same period in 2018.
• Crop nutrients sales decreased in the fourth quarter of 2019 as higher sales volumes were offset by lower selling prices. Crop nutrients sales in 2019 increased due to higher sales volumes and higher selling prices. Gross margin percentage increased in the periods due to strategic purchasing and an increased mix of higher margin specialty and proprietary products sales.
• Crop protection products sales in the fourth quarter decreased compared to the fourth quarter of 2018 due primarily to lower Canadian fall applications caused by early winter conditions. Crop protection products sales in 2019 increased as US farmers made more in-season applications due to the excessive moisture experienced in the fall of 2018. Gross margin percentage increased in the fourth quarter and was flat in 2019 due to favorable product mix changes and strategic purchasing that offset the impact of higher competition from a condensed season and higher costs for product sourced from China.
• Seed sales in the fourth quarter were down slightly compared to the same period in 2018 caused mostly by drought conditions in Australia. Sales in 2019 increased compared to 2018 due to the mix of higher value corn and cotton seed sales, which more than offset the impact of lower planted acreage in the US. Gross margin percentage increased in the fourth quarter due to a favorable sales mix, while gross margin percentage in 2019 was comparable with 2018.
• Merchandise sales and gross margin increased in the fourth quarter and full year of 2019 due to our recent acquisition of Ruralco.
• Services and other sales were higher in the fourth quarter and full year of 2019 due to sales from recent acquisitions, including Ruralco, and increased US applications and services resulting from a condensed growing season. Gross margin percentage decreased in the quarter and full year of 2019 due to product mix changes resulting primarily from the acquisition of Ruralco.

Potash

	Three Months Ended December 31
(millions of US dollars, except	Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)	2019		2018	% Change			2019		2018	% Change			2019		2018	% Change
Manufactured product 1
Net sales
North America	146		177		(18)		651		731		(11)		226		242		(7)
Offshore	204		459		(56)		1,234		2,126		(42)		164		216		(24)
	350		636		(45)		1,885		2,857		(34)		186		223		(17)
Cost of goods sold	211		271		(22)								112		95		18
Gross margin - manufactured	139		365		(62)								74		128		(42)
Gross margin - other 2	-		1		(100)		Depreciation and amortization						35		32		9
Gross margin - total	139		366		(62)		Gross margin excluding depreciation
Expenses 3	56		64		(13)		and amortization - manufactured 4						109		160		(32)
EBIT	83		302		(73)		Potash cash cost of product
Depreciation and amortization	66		92		(28)		manufactured 4						82		67		22
EBITDA	149		394		(62)
1 Includes intersegment sales. See Note 2 to the condensed consolidated financial statements. 2 Includes other potash and purchased products and is comprised of net sales of $Nil (2018 – $1 million) less cost of goods sold of $Nil (2018 – $Nil). 3 Includes provincial mining and other taxes of $50 million (2018 – $56 million). 4 See the "Non-IFRS Financial Measures" section.

• EBITDA decreased in the fourth quarter due to lower sales volumes, lower net realized selling prices and the temporary impacts associated with production downtime and the Canadian National Railway labor strike. EBITDA in 2019 was higher as a result of a non-cash impairment of our New Brunswick potash facility in 2018. Adjusted EBITDA in 2019 was similar to 2018 as lower sales volumes and higher provincial mining taxes and other taxes were mostly offset by higher net realized selling prices.
• Sales volumes in North America were down in the fourth quarter and in the full year of 2019 due to challenging US weather conditions that negatively impacted both spring and fall applications. Offshore sales volumes in 2019 were the second highest on record, down only from 2018, due to strong demand in the first half of the year. Offshore sales volumes in the fourth quarter of 2019 decreased from the same period last year as customers in key markets delayed purchases and/or drew upon existing inventory.
• Net realized selling price decreased in the fourth quarter of 2019 reflecting lower benchmark prices caused by a temporary slowdown in global demand. Higher freight rates further decreased North America net realized selling prices while adjustments to Nutrien’s provisional selling price to Canpotex lowered Offshore net realized selling prices in the quarter. Net realized selling prices were higher in 2019 compared to 2018 due to stronger prices through the first nine months of the year.
• Cost of goods sold per tonne increased in the fourth quarter and full year of 2019 compared to the same periods in 2018 due to the impact of lower production volumes related to temporary production downtime. Potash cash cost of product manufactured per tonne increased in the fourth quarter and full year of 2019 due primarily to the impact of lower production volumes compared to the same periods in 2018.

Canpotex Sales by Market

(percentage of sales volumes, except as	Three Months Ended December 31				Twelve Months Ended December 31
otherwise noted)	2019	2018	% Change		2019	2018	% Change
Latin America	31	33	(6)		31	33	(6)
Other Asian markets 1	27	28	(4)		27	31	(13)
China	17	17	-		22	18	22
India	7	14	(50)		10	10	-
Other markets	18	8	125		10	8	25
	100	100			100	100
1 All Asian markets except China and India.

Nitrogen

	Three Months Ended December 31
(millions of US dollars, except	Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)	2019		2018 ¹	% Change			2019		2018 ¹	% Change			2019		2018 ¹	% Change
Manufactured product 2
Net sales
Ammonia	141		235		(40)		571		808		(29)		245		290		(16)
Urea	193		231		(16)		695		687		1		278		337		(18)
Solutions, nitrates and sulfates	166		180		(8)		1,096		1,016		8		152		177		(14)
	500		646		(23)		2,362		2,511		(6)		212		257		(18)
Cost of goods sold	404		439		(8)								171		175		(2)
Gross margin - manufactured	96		207		(54)								41		82		(50)
Gross margin - other 3	11		17		(35)		Depreciation and amortization						60		43		40
Gross margin - total	107		224		(52)		Gross margin excluding depreciation
(Income) Expenses	(11)		11		n/m		and amortization - manufactured 4						101		125		(19)
EBIT	118		213		(45)		Ammonia controllable cash cost of
Depreciation and amortization	141		108		31		product manufactured 4						48		44		9
EBITDA	259		321		(19)
1 Restated for the reclassification of sulfate from the Phosphate segment. See Note 2 to the condensed consolidated financial statements. 2 Includes intersegment sales. See Note 2 to the condensed consolidated financial statements. 3 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $103 million (2018 – $99 million) less cost of goods sold of $92 million (2018 – $82 million). 4 See the "Non-IFRS Financial Measures" section.

• EBITDA decreased in the fourth quarter of 2019 as lower ammonia sales volumes and lower nitrogen net realized selling prices more than offset the impact of lower natural gas costs. EBITDA for 2019 increased compared to 2018 as lower natural gas costs, higher earnings from equity-accounted investees and the impact of adopting IFRS 16 more than offset lower sales volumes and net realized selling prices.
• Sales volumes in the fourth quarter and full year of 2019 were down compared to the same period in 2018 as lower ammonia sales volumes in some of our highest netback regions were only partially offset by higher urea and solutions, nitrates and sulfates sales volumes. Ammonia sales volumes were impacted by compressed spring and fall application seasons in North America and turnaround activity at our Trinidad facility.
• Net realized selling price of nitrogen was lower in the fourth quarter and full year of 2019 as benefits from our distribution network and product positioning were more than offset by lower global benchmark prices.
• Cost of goods sold per tonne of nitrogen decreased in the fourth quarter of 2019 due primarily to lower natural gas costs. Cost of goods sold in 2019 was slightly higher compared to 2018 as lower natural gas costs in North America were offset by higher natural gas costs in Trinidad and a lower proportion of sales from lower cost facilities. Ammonia controllable cash cost of product manufactured per tonne increased in the fourth quarter and full year 2019 due to lower production volumes available for sale resulting from turnaround activity at our Trinidad facility.

Natural Gas Prices

	Three Months Ended December 31						Twelve Months Ended December 31
(US dollars per MMBtu, except as otherwise noted)	2019		2018		% Change		2019		2018		% Change
Overall gas cost excluding realized derivative impact	2.46		2.87		(14)		2.47		2.54		(3)
Realized derivative impact	0.06		0.14		(57)		0.11		0.29		(62)
Overall gas cost	2.52		3.01		(16)		2.58		2.83		(9)
Average NYMEX	2.50		3.64		(31)		2.63		3.09		(15)
Average AECO	1.76		1.45		21		1.22		1.19		3

• Gas costs decreased in the fourth quarter and full year 2019 compared to the same periods last year due primarily to lower gas costs in the US and a lower realized derivative impact.

Phosphate

	Three Months Ended December 31
(millions of US dollars, except	Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)	2019		2018 ¹	% Change			2019		2018 ¹	% Change			2019		2018 ¹	% Change
Manufactured product 2
Net sales
Fertilizer	155		255		(39)		466		601		(22)		334		423		(21)
Industrial and feed	105		106		(1)		181		207		(13)		581		513		13
	260		361		(28)		647		808		(20)		403		446		(10)
Cost of goods sold	255		346		(26)								395		428		(8)
Gross margin - manufactured	5		15		(67)								8		18		(56)
Gross margin - other 3	1		(2)		n/m		Depreciation and amortization						88		66		33
Gross margin - total	6		13		(54)		Gross margin excluding depreciation
Expenses	9		13		(31)		and amortization - manufactured 4						96		84		14
EBIT	(3)		-		-
Depreciation and amortization	57		53		8
EBITDA	54		53		2
1 Restated for the reclassification of sulfate to the Nitrogen segment. See Note 2 to the condensed consolidated financial statements. 2 Includes intersegment sales. See Note 2 to the condensed consolidated financial statements. 3 Includes other phosphate and purchased products and is comprised of net sales of $27 million (2018 - $45 million) less cost of goods sold of $26 million (2018 - $47 million). 4 See the "Non-IFRS Financial Measures" section.

• EBITDA increased in the fourth quarter of 2019 due to lower phosphate rock and other raw material costs that were partially offset by lower sales volumes and lower net realized selling prices. EBITDA decreased in 2019 relative to 2018 due primarily to lower net realized selling prices and lower sales volumes.
• Sales volumes decreased in the fourth quarter and the full year of 2019 due primarily to reduced fertilizer application in North America caused by adverse weather in both the spring and fall application seasons. Industrial and feed sales volumes in the same periods decreased due to the timing of sales.
• Net realized selling price decreased in the fourth quarter and full year of 2019 compared to the same periods in 2018 as higher prices for industrial products were more than offset by lower dry phosphate fertilizer prices.
• Cost of goods sold per tonne decreased in the fourth quarter compared to the same period in 2018 due to benefits from the conversion of our Redwater facility to ammonium sulfate and lower raw material costs. Cost of goods sold per tonne increased in the full year of 2019 due to higher non-cash asset retirement adjustments, and lower sales volumes that more than offset lower raw material costs.

Forward-Looking Statements

Certain statements and other information included and incorporated by reference in this document constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statements are often accompanied by words such as "anticipate", “forecast”, "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). All statements in this document, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to: Nutrien's 2020 annual guidance, including expectations regarding our adjusted net earnings per share and adjusted EBITDA (both consolidated and by segment); capital spending expectations for 2020; expectations regarding performance of our operating segments in 2020; our operating segment market outlooks and market conditions for 2020, and including anticipated supply and demand for our products and services, expected market and industry conditions with respect to crop nutrient application rates, planted acres, crop mix, prices and the impact of currency fluctuations and import and export volumes; and acquisitions and divestitures, and the expected synergies associated with various acquisitions, including timing thereof. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements.

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place an undue reliance on these assumptions and such forward-looking statements. The additional key assumptions that have been made include, among other things, assumptions with respect to our ability to successfully complete, integrate and realize the anticipated benefits of our already completed and future acquisitions, and that we will be able to implement our standards, controls, procedures and policies at any acquired businesses to realize the expected synergies; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability and cost of labor and interest, exchange and effective tax rates; the completion of our expansion projects on schedule, as planned and on budget; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2020 and in the future; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and divestitures and negotiate acceptable terms; our ability to maintain investment grade ratings and achieve our performance targets; and the receipt, on time, of all necessary permits, utilities and project approvals with respect to our expansion projects and that we will have the resources necessary to meet the projects’ approach.

Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: general global economic, market and business conditions; failure to complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; climate change and weather conditions, including impacts from regional flooding and/or drought conditions; crop planted acreage, yield and prices; the supply and demand and price levels for our products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy (including tariffs, trade restrictions and climate change initiatives), government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; political risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism; the occurrence of a major environmental or safety incident; innovation and cybersecurity risks related to our systems, including our costs of addressing or mitigating such risks; regional natural gas supply restrictions; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; gas supply interruptions; any significant impairment of the carrying value of certain assets; risks related to reputational loss; certain complications that may arise in our mining processes; the ability to attract, engage and retain skilled employees and strikes or other forms of work stoppages; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States.

The purpose of our expected adjusted net earnings per share, adjusted EBITDA and EBITDA by segment guidance ranges, as well as our adjusted net earnings per share and adjusted EBITDA price and volume and input cost sensitivities ranges, are to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

Nutrien disclaims any intention or obligation to update or revise any forward-looking statements in this document as a result of new information or future events, except as may be required under applicable Canadian securities legislation or applicable US federal securities laws.

Terms and References

For the definitions of certain financial and non-financial terms used in this document, as well as a list of abbreviated company names and sources, see the “Terms”, “Abbreviated Company Names and Sources” and “Terms and Measures” sections of our 2018 Annual Report dated February 20, 2019. All references to per share amounts pertain to diluted net earnings (loss) per share, "n/m" indicates information that is not meaningful and all financial data are stated in millions of US dollars, unless otherwise noted.

About Nutrien

Nutrien is the world's largest provider of crop inputs and services, playing a critical role in helping growers around the globe increase food production in a sustainable manner. We produce and distribute 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.

Contact us at: www.nutrien.com.

Selected financial data for download can be found in our data tool at www.nutrien.com/investors/interactive-datatool

Such data is not incorporated by reference herein.

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Appendix A - Selected Additional Financial Data

Twelve Months Ended December 31, 2019 Operating Segment Results

Retail

	Twelve Months Ended December 31
(millions of US dollars, except	Dollars						Gross Margin						Gross Margin (%)
as otherwise noted)	2019		2018		% Change		2019		2018		% Change		2019		2018
Sales
Crop nutrients 1	4,989		4,577		9		1,032		923		12		21		20
Crop protection products	4,983		4,862		2		1,173		1,155		2		24		24
Seed	1,712		1,687		1		336		333		1		20		20
Merchandise 2	598		584		2		109		103		6		18		18
Services and other	939		810		16		590		521		13		63		64
	13,221		12,520		6		3,240		3,035		7		25		24
Cost of goods sold 2	9,981		9,485		5
Gross margin	3,240		3,035		7
Expenses 3	2,604		2,328		12
EBIT	636		707		(10)
Depreciation and amortization	595		499		19
EBITDA	1,231		1,206		2
1 Includes intersegment sales. See Note 2 to the condensed consolidated financial statements. 2 Certain immaterial figures have been reclassified or grouped together for the twelve months ended December 31, 2018. 3 Includes selling expenses of $2,484 million (2018 – $2,303 million).

Potash

	Twelve Months Ended December 31
(millions of US dollars, except	Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)	2019		2018	% Change			2019		2018	% Change			2019		2018	% Change
Manufactured product 1
Net sales
North America	978		1,007		(3)		4,040		4,693		(14)		242		214		13
Offshore	1,625		1,657		(2)		7,481		8,326		(10)		217		199		9
	2,603		2,664		(2)		11,521		13,019		(12)		226		205		10
Cost of goods sold	1,103		1,182		(7)								96		91		5
Gross margin - manufactured	1,500		1,482		1								130		114		14
Gross margin - other 2	1		2		(50)		Depreciation and amortization						34		31		10
Gross margin - total	1,501		1,484		1
Impairment of assets	-		1,809		(100)		Gross margin excluding depreciation
Expenses 3	298		282		6		and amortization - manufactured 4						164		145		13
EBIT	1,203		(607)		n/m		Potash cash cost of product
Depreciation and amortization	390		404		(3)		manufactured 4						63		60		5
EBITDA	1,593		(203)		n/m
Adjusted EBITDA 4	1,593		1,606		(1)
1 Includes intersegment sales. See Note 2 to the condensed consolidated financial statements. 2 Includes other potash and purchased products and is comprised of net sales of $1 million (2018 – $3 million) less cost of goods sold of $Nil (2018 – $1 million). 3 Includes provincial mining and other taxes of $287 million (2018 – $244 million). 4 See the "Non-IFRS Financial Measures" section.

Nitrogen

	Twelve Months Ended December 31
(millions of US dollars, except	Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)	2019		2018 ¹	% Change			2019		2018 ¹	% Change			2019		2018 ¹	% Change
Manufactured product 2
Net sales
Ammonia	743		903		(18)		2,971		3,330		(11)		250		271		(8)
Urea	932		895		4		3,037		3,003		1		307		298		3
Solutions, nitrates and sulfates	706		729		(3)		4,262		4,265		-		166		171		(3)
	2,381		2,527		(6)		10,270		10,598		(3)		232		238		(3)
Cost of goods sold	1,749		1,777		(2)								170		168		1
Gross margin - manufactured	632		750		(16)								62		70		(11)
Gross margin - other 3	68		70		(3)		Depreciation and amortization						52		42		24
Gross margin - total	700		820		(15)		Gross margin excluding depreciation
(Income) Expenses	(4)		47		n/m		and amortization - manufactured 4						114		112		2
EBIT	704		773		(9)		Ammonia controllable cash cost of
Depreciation and amortization	535		442		21		product manufactured 4						45		43		5
EBITDA	1,239		1,215		2
1 Restated for the reclassification of sulfate from the Phosphate segment. See the ''Segment Results'' section and Note 2 to the condensed consolidated financial statements. 2 Includes intersegment sales. See Note 2 to the condensed consolidated financial statements. 3 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $467 million (2018 – $438 million) less cost of goods sold of $399 million (2018 – $368 million). 4 See the "Non-IFRS Financial Measures" section.

Phosphate

	Twelve Months Ended December 31
(millions of US dollars, except	Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)	2019		2018 ¹	% Change			2019		2018 ¹	% Change			2019		2018 ¹	% Change
Manufactured product 2
Net sales
Fertilizer	790		995		(21)		2,130		2,425		(12)		371		410		(10)
Industrial and feed	426		424		-		759		847		(10)		561		500		12
	1,216		1,419		(14)		2,889		3,272		(12)		421		434		(3)
Cost of goods sold	1,218		1,329		(8)								422		406		4
Gross margin - manufactured	(2)		90		n/m								(1)		28		n/m
Gross margin - other 3	(3)		(2)		50		Depreciation and amortization						82		59		39
Gross margin - total	(5)		88		n/m		Gross margin excluding depreciation
Expenses	38		26		46		and amortization - manufactured 4						81		87		(7)
EBIT	(43)		62		n/m
Depreciation and amortization	237		193		23
EBITDA	194		255		(24)
1 Restated for the reclassification of sulfate to the Nitrogen segment. See the ''Segment Results'' section and Note 2 to the condensed consolidated financial statements. 2 Includes intersegment sales. See Note 2 to the condensed consolidated financial statements. 3 Includes other phosphate and purchased products and is comprised of net sales of $152 million (2018 - $142 million) less cost of goods sold of $155 million (2018 - $144 million). 4 See the "Non-IFRS Financial Measures" section.

Selected Retail measures

	Three Months Ended December 31				Twelve Months Ended December 31
	2019		2018		2019		2018
Proprietary products margin as a percentage of product line margin (%)
Crop nutrients	15		11		23		21
Crop protection products	8		8		34		37
Seed	11		16		38		38
All Products	8		8		24		25
Crop nutrients sales volumes (tonnes - thousands)
North America	1,558		1,543		8,812		8,547
International	559		447		2,236		2,142
Total	2,117		1,990		11,048		10,689
Crop nutrients selling price per tonne
North America	436		456		465		437
International	408		479		398		395
Total	428		461		452		428
Crop nutrients gross margin per tonne
North America	95		96		102		94
International	68		80		60		57
Total	88		92		93		86
Financial performance measures					2019 Target		2019 Actuals
Retail EBITDA to sales (%) 1, 2					10		9
Retail adjusted average working capital to sales (%) 1, 2					20		23
Retail cash operating coverage ratio (%) 1, 2					60		62
Retail normalized comparable store sales (%) 2							(1)
Retail EBITDA per US selling location (thousands of US dollars) 1, 2							967
1 Rolling four quarters ended December 31, 2019. 2 See the "Non-IFRS Financial Measures" section.

Selected Nitrogen measures

	Three Months Ended December 31				Twelve Months Ended December 31
	2019		2018		2019		2018
Sales volumes (tonnes - thousands)
Fertilizer	1,350		1,331		5,554		5,680
Industrial and feed	1,012		1,180		4,716		4,918
Net sales (millions of US dollars)
Fertilizer	311		359		1,466		1,444
Industrial and feed	189		287		915		1,083
Net selling price per tonne
Fertilizer	230		269		264		254
Industrial and feed	187		243		194		220

Production measures

	Three Months Ended December 31				Twelve Months Ended December 31
	2019		2018		2019		2018
Potash production (Product tonnes - thousands)	1,939		3,039		11,700		12,842
Potash shutdown weeks 1	28		7		55		39
Nitrogen production (Ammonia tonnes - thousands) 2	1,401		1,547		6,164		6,372
Ammonia operating rate (%) 3	94		87		91		92
Phosphate production (P2O5 tonnes - thousands) 4	390		412		1,514		1,551
Phosphate P2O5 operating rate (%)4	91		96		89		91
1 Represents weeks of full production shutdown, excluding the impact of any periods of reduced operating rates and planned routine annual maintenance shutdowns and announced workforce reductions. 2 All figures are provided on a gross production basis. 3 Excludes Trinidad and Joffre. 4 Excludes Redwater. Comparative figures were restated to exclude Redwater.

Appendix B - Non-IFRS Financial Measures

We use both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are numerical measures of a company’s performance, that either exclude or include amounts that are not normally excluded or included in the most directly comparable measures calculated and presented in accordance with IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.

Management believes the non-IFRS financial measures provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

The following section outlines our non-IFRS financial measures, their definitions and why management uses each measure. It includes reconciliations to the most directly comparable IFRS measures.

EBITDA, Adjusted EBITDA and Potash Adjusted EBITDA

Most directly comparable IFRS financial measure: Net earnings (loss) from continuing operations.

Definition: EBITDA is calculated as net earnings (loss) from continuing operations before finance costs, income taxes and depreciation and amortization. Adjusted EBITDA is calculated as net earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization, Merger and related costs, acquisition and integration related costs, share-based compensation, defined benefit plans curtailment gain, impairment of assets, and foreign exchange gain/loss, net of related derivatives. In the fourth quarter of 2019, we amended our calculations of adjusted EBITDA and restated the comparative periods to exclude the impact of foreign exchange gain/loss, net of related derivatives, as foreign exchange changes are not indicative of our operating performance. We have also amended our calculations of adjusted EBITDA to adjust for acquisition and integration related costs for certain acquisitions such as Ruralco. There were no similar acquisitions in the comparative periods.

Why we use the measure and why it is useful to investors: These are meaningful measures because they are not impacted by long-term investment and financing decisions, but rather focus on the performance of our day-to-day operations. These provide a measure of our ability to service debt and to meet other payment obligations.

	Three Months Ended December 31				Twelve Months Ended December 31
(millions of US dollars)	2019		2018		2019		2018
Net (loss) earnings from continuing operations	(48)		296		992		(31)
Finance costs	141		144		554		538
Income tax (recovery) expense	(30)		106		316		(93)
Depreciation and amortization	436		398		1,799		1,592
EBITDA	499		944		3,661		2,006
Merger and related costs	25		27		82		170
Acquisition and integration related costs	16		-		16		-
Share-based compensation	9		(33)		104		116
Defined benefit plans curtailment gain	-		(6)		-		(157)
Impairment of assets	87		-		120		1,809
Foreign exchange loss (gain), net of related derivatives	28		(8)		42		(10)
Adjusted EBITDA	664		924		4,025		3,934

	Three Months Ended December 31				Twelve Months Ended December 31
(millions of US dollars)	2019		2018		2019		2018
Potash EBITDA	149		394		1,593		(203)
Impairment of assets	-		-		-		1,809
Potash adjusted EBITDA	149		394		1,593		1,606

Adjusted EBITDA, Adjusted Net Earnings and Adjusted Net Earnings Per Share Guidance

This guidance is provided on a non-IFRS basis. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with IFRS due to unknown variables and the uncertainty related to future results. These unknown variables may include unpredictable transactions of significant value that may be inherently difficult to determine, without unreasonable efforts. Guidance excludes the impacts of acquisition and integration related costs, share-based compensation and foreign exchange gain/loss, net of related derivatives.

Adjusted Net Earnings and Adjusted Net Earnings Per Share

Most directly comparable IFRS financial measure: Net earnings from continuing operations and net earnings per share.

Definition: Net earnings from continuing operations before Merger and related costs, acquisition and integration related costs, share-based compensation, impairment of assets and foreign exchange gain/loss (net of related derivatives), net of tax. In the fourth quarter of 2019, we amended our calculations of adjusted net earnings to exclude the impact of foreign exchange gain/loss, net of derivatives, as foreign exchange changes are not indicative of our operating performance. We have also amended our calculations of adjusted net earnings to adjust for acquisition and integration related costs for certain acquisitions such as Ruralco.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations excluding the effects of non-operating items.

	Three Months Ended December 31, 2019						Twelve Months Ended December 31, 2019
					Per						Per
(millions of US dollars, except as otherwise	Increases				Diluted		Increases				Diluted
noted)	(Decreases)		Post-Tax		Share		(Decreases)		Post-Tax		Share
Net (loss) earnings from continuing operations			(48)		(0.08)				992		1.70
Adjustments:
Merger and related costs	25		15		0.02		82		62		0.10
Acquisition and integration related costs	16		11		0.02		16		12		0.02
Share-based compensation	9		6		0.01		104		79		0.14
Impairment of assets	87		53		0.09		120		91		0.16
Foreign exchange loss, net of related derivatives	28		17		0.03		42		32		0.05
Adjusted net earnings			54		0.09				1,268		2.17

Free Cash Flow and Free Cash Flow Including Changes in Non-Cash Working Capital

Most directly comparable IFRS financial measure: Cash from operations before working capital changes.

Definition: Cash from operations before working capital changes less sustaining capital expenditures and cash provided by operating activities from discontinued operations. We also calculate this measure including changes in non-cash working capital.

Why we use the measure and why it is useful to investors: For evaluation of liquidity and financial strength, and as a component of employee remuneration calculations. These are also useful as an indicator of our ability to service debt, meet other payment obligations and make strategic investments. These do not represent residual cash flow available for discretionary expenditures.

	Three Months Ended December 31				Twelve Months Ended December 31
(millions of US dollars)	2019		2018		2019		2018
Cash from operations before working capital changes	489		724		3,175		3,190
Cash used in (provided by) operating activities from discontinued operations	-		26		-		(130)
Sustaining capital expenditures	(351)		(347)		(1,018)		(1,085)
Free cash flow	138		403		2,157		1,975
Changes in non-cash working capital	1,930		1,244		490		(1,138)
Free cash flow including changes in non-cash working capital	2,068		1,647		2,647		837

Potash Cash Cost of Product Manufactured (“COPM”)

Most directly comparable IFRS financial measure: Cost of goods sold (“COGS”) for the Potash segment.

Definition: Potash COGS for the period excluding depreciation and amortization expense and inventory and other adjustments divided by the production tonnes for the period.

Why we use the measure and why it is useful to investors: To assess operational performance. Potash cash COPM excludes the effects of production from other periods and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

	Three Months Ended December 31				Twelve Months Ended December 31
(millions of US dollars, except as otherwise noted)	2019		2018		2019		2018
Total COGS - Potash	211		271		1,103		1,183
Change in inventory	11		33		10		(5)
Other adjustments	-		(4)		(16)		(14)
COPM	222		300		1,097		1,164
Depreciation and amortization included in COPM	(63)		(98)		(355)		(391)
Cash COPM	159		202		742		773
Production tonnes (tonnes - thousands)	1,939		3,039		11,700		12,842
Potash cash COPM per tonne	82		67		63		60

Ammonia Controllable Cash COPM

Most directly comparable IFRS financial measure: COGS for the Nitrogen segment.

Definition: The total of COGS for the Nitrogen segment excluding depreciation and amortization expense included in COGS, cash COGS for products other than ammonia, other adjustments, and natural gas and steam costs, divided by net ammonia production tonnes.

Why we use the measure and why it is useful to investors: To assess operational performance. Ammonia controllable cash COPM excludes the effects of production from other periods, the costs of natural gas and steam, and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

	Three Months Ended December 31				Twelve Months Ended December 31
(millions of US dollars, except as otherwise noted)	2019		2018		2019		2018
Total COGS - Nitrogen	496		521		2,148		2,145
Depreciation and amortization in COGS	(122)		(108)		(462)		(442)
Cash COGS for products other than ammonia	(274)		(286)		(1,226)		(1,212)
Ammonia
Total cash COGS before other adjustments	100		127		460		491
Other adjustments 1	(22)		-		(57)		(28)
Total cash COPM	78		127		403		463
Natural gas and steam costs	(52)		(90)		(273)		(321)
Controllable cash COPM	26		37		130		142
Production tonnes (net tonnes 2 - thousands)	544		843		2,887		3,320
Ammonia controllable cash COPM per tonne	48		44		45		43
1 Includes changes in inventory balances and other adjustments. 2 Ammonia tonnes available for sale, as not upgraded to other Nitrogen products.

Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured

Most directly comparable IFRS financial measure: Gross margin.

Definition: Gross margin from manufactured products per tonne less depreciation and amortization per tonne. Reconciliations are provided in the “Segment Results” section and “Appendix A – Selected Additional Financial Data”.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions.

Retail EBITDA to Sales

Most directly comparable IFRS financial measure: Retail EBITDA divided by Retail sales.

Definition: Retail EBITDA divided by Retail sales for the last four rolling quarters.

Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A higher or lower percentage represents increased or decreased efficiency, respectively.

	Rolling four quarters ended December 31, 2019
(millions of US dollars, except as otherwise noted)	Q1 2019		Q2 2019		Q3 2019		Q4 2019		Total
EBITDA	(26)		836		190		231		1,231
Sales	2,039		6,512		2,499		2,171		13,221
EBITDA to Sales (%)									9

Retail Adjusted Average Working Capital to Sales

Most directly comparable IFRS financial measure: (Current assets minus current liabilities for Retail) divided by Retail sales.

Definition: Retail average working capital divided by Retail sales for the last four rolling quarters excluding working capital acquired in the quarter certain recent acquisitions, such as Ruralco, were completed.

Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively.

	Rolling four quarters ended December 31, 2019
(millions of US dollars, except as otherwise noted)	Q1 2019		Q2 2019		Q3 2019		Q4 2019		Average/Total
Working capital	3,190		3,741		3,699		1,759
Working capital from certain recent acquisitions	-		-		(75)		(138)
Adjusted working capital	3,190		3,741		3,624		1,621		3,044
Sales	2,039		6,512		2,499		2,171		13,221
Adjusted average working capital to sales (%)									23

Retail Cash Operating Coverage Ratio

Most directly comparable IFRS financial measure: Retail operating expenses 1 as a percentage of Retail gross margin.

Definition: Retail operating expenses excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold for the last four rolling quarters.

Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow.

	Rolling four quarters ended December 31, 2019
(millions of US dollars, except as otherwise noted)	Q1 2019		Q2 2019		Q3 2019		Q4 2019		Total
Gross margin	409		1,440		655		736		3,240
Depreciation and amortization in cost of goods sold	2		1		2		2		7
Gross margin excluding depreciation and amortization	411		1,441		657		738		3,247
Operating expenses	571		749		617		667		2,604
Depreciation and amortization in operating expenses	(132)		(143)		(150)		(160)		(585)
Operating expenses excluding depreciation and amortization	439		606		467		507		2,019
Cash operating coverage ratio (%)									62
1 Includes Retail expenses below gross margin including selling expenses, general and administrative expenses and other (income) expenses.

Retail EBITDA per US Selling Location

Most directly comparable IFRS financial measure: Retail US EBITDA.

Definition: Total Retail US EBITDA for the last four rolling quarters adjusted for acquisitions in those quarters, divided by the number of US locations that have generated sales in the last four rolling quarters adjusted for acquired locations.

Why we use the measure and why it is useful to investors: To assess our US Retail operating performance. Includes locations we have owned for more than 12 months.

	Rolling four quarters ended December 31, 2019
(millions of US dollars, except as otherwise noted)	Q1 2019		Q2 2019		Q3 2019		Q4 2019		Total
US EBITDA	(58)		672		142		143		899
Adjustments for acquisitions									(27)
US EBITDA adjusted for acquisitions									872
Number of US selling locations adjusted for acquisitions									902
EBITDA per US selling location (thousands of US dollars)									967

Retail Normalized Comparable Store Sales

Most directly comparable IFRS financial measure: Retail sales from comparable base as a component of total Retail sales.

Definition: Prior year comparable store sales adjusted for published potash, nitrogen and phosphate benchmark prices and foreign exchange rates used in the current year. We retain sales of closed locations in the comparable base if the closed location is in close proximity to an existing location, unless we plan to exit the market area or are unable to economically or logistically serve it. We do not adjust for temporary closures, expansions or renovations of stores.

Why we use the measure and why it is useful to investors: To evaluate sales growth by adjusting for fluctuations in commodity prices and foreign exchange rates. Includes locations we have owned for more than 12 months.

	Twelve Months Ended December 31
(millions of US dollars, except as otherwise noted)	2019		2018
Sales from comparable base
Current period	12,568		12,253
Prior period	12,520	1	12,103
Comparable store sales (%)	0		1
Prior period normalized for benchmark prices and foreign exchange rates	12,636	1	12,363
Normalized comparable store sales (%)	(1)		(1)
1 Certain immaterial figures have been reclassified for 2018.

Condensed Consolidated Financial Statements

Unaudited in millions of dollars except as otherwise noted

Condensed Consolidated Statements of (Loss) Earnings

		Three Months Ended				Twelve Months Ended
		December 31				December 31
		2019		2018		2019		2018
				Note 1				Note 1
SALES	Note 2	3,442		3,762		20,023		19,636
Freight, transportation and distribution		172		189		768		864
Cost of goods sold		2,256		2,314		13,814		13,380
GROSS MARGIN		1,014		1,259		5,441		5,392
Selling expenses		670		579		2,505		2,337
General and administrative expenses		117		111		404		423
Provincial mining and other taxes		39		58		292		250
Share-based compensation expense (recovery)		9		(33)		104		116
Impairment of assets		87		-		120		1,809
Other expenses (income)		29		(2)		154		43
EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES		63		546		1,862		414
Finance costs		141		144		554		538
(LOSS) EARNINGS BEFORE INCOME TAXES		(78)		402		1,308		(124)
Income tax (recovery) expense		(30)		106		316		(93)
NET (LOSS) EARNINGS FROM CONTINUING OPERATIONS		(48)		296		992		(31)
Net earnings from discontinued operations		-		2,906		-		3,604
NET (LOSS) EARNINGS		(48)		3,202		992		3,573
NET (LOSS) EARNINGS PER SHARE FROM CONTINUING OPERATIONS
Basic		(0.08)		0.48		1.70		(0.05)
Diluted		(0.08)		0.48		1.70		(0.05)
NET EARNINGS PER SHARE FROM DISCONTINUED OPERATIONS
Basic		-		4.75		-		5.77
Diluted		-		4.74		-		5.77
NET (LOSS) EARNINGS PER SHARE ("EPS")
Basic		(0.08)		5.23		1.70		5.72
Diluted		(0.08)		5.22		1.70		5.72
Weighted average shares outstanding for basic EPS		572,916,000		612,151,000		582,269,000		624,900,000
Weighted average shares outstanding for diluted EPS		572,916,000		612,947,000		583,102,000		624,900,000

Condensed Consolidated Statements of Comprehensive Income

	Three Months Ended				Twelve Months Ended
	December 31				December 31
(Net of related income taxes)	2019		2018		2019		2018
NET (LOSS) EARNINGS	(48)		3,202		992		3,573
Other comprehensive income (loss)
Items that will not be reclassified to net (loss) earnings:
Net actuarial gain (loss) on defined benefit plans	7		(2)		7		54
Net fair value gain (loss) on investments	1		(20)		(25)		(99)
Items that have been or may be subsequently reclassified to net (loss) earnings:
Gain (loss) on currency translation of foreign operations	83		(103)		47		(249)
Other	2		(3)		7		(8)
OTHER COMPREHENSIVE INCOME (LOSS)	93		(128)		36		(302)
COMPREHENSIVE INCOME	45		3,074		1,028		3,271
(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Cash Flows

		Three Months Ended				Twelve Months Ended
		December 31				December 31
		2019		2018		2019		2018
				Note 1				Note 1
OPERATING ACTIVITIES
Net (loss) earnings		(48)		3,202		992		3,573
Adjustments for:
Depreciation and amortization		436		398		1,799		1,592
Share-based compensation		9		(33)		104		116
Impairment of assets		87		-		120		1,809
(Recovery of) provision for deferred income tax		(1)		(232)		177		(290)
Gain on sale of investments in Sociedad Quimica y Minera de Chile S.A. ("SQM") and Arab Potash Company		-		(3,558)		-		(4,399)
Income tax related to the sale of the investment in SQM		-		977		-		977
Other long-term liabilities and miscellaneous		6		(30)		(17)		(188)
Cash from operations before working capital changes		489		724		3,175		3,190
Changes in non-cash operating working capital:
Receivables		1,363		1,351		(64)		(153)
Inventories		(1,049)		(1,011)		190		(887)
Prepaid expenses and other current assets		(1,039)		(176)		(238)		561
Payables and accrued charges		2,655		1,080		602		(659)
CASH PROVIDED BY OPERATING ACTIVITIES		2,419		1,968		3,665		2,052
INVESTING ACTIVITIES
Additions to property, plant and equipment		(551)		(492)		(1,728)		(1,405)
Additions to intangible assets		(45)		(51)		(163)		(102)
Business acquisitions, net of cash acquired		(74)		(48)		(911)		(433)
Proceeds from disposal of discontinued operations, net of tax		-		3,561		55		5,394
Purchase of investments		(34)		(12)		(198)		(135)
Cash acquired in Merger		-		-		-		466
Other		39		26		147		102
CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES		(665)		2,984		(2,798)		3,887
FINANCING ACTIVITIES
Transaction costs on long-term debt		-		-		(29)		(21)
(Repayment of) proceeds from short-term debt, net		(1,318)		(4,141)		216		(927)
Proceeds from long-term debt		-		-		1,510		-
Repayment of long-term debt		-		(4)		(1,010)		(12)
Repayment of principal portion of lease liabilities		(68)		-		(234)		-
Dividends paid		(258)		(244)		(1,022)		(952)
Repurchase of common shares		-		(137)		(1,930)		(1,800)
Issuance of common shares		2		-		20		7
CASH USED IN FINANCING ACTIVITIES		(1,642)		(4,526)		(2,479)		(3,705)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(9)		(14)		(31)		(36)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		103		412		(1,643)		2,198
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD		568		1,902		2,314		116
CASH AND CASH EQUIVALENTS – END OF PERIOD		671		2,314		671		2,314
Cash and cash equivalents comprised of:
Cash		532		1,506		532		1,506
Short-term investments		139		808		139		808
		671		2,314		671		2,314
SUPPLEMENTAL CASH FLOWS INFORMATION
Interest paid		152		141		505		507
Income taxes paid		28		1,032		29		1,155
Total cash outflow for leases		92		-		345		-
(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Changes in Shareholders’ Equity

					Accumulated Other Comprehensive (Loss) Income ("AOCI")
							Net
							Actuarial		Loss on
					Net Fair		Gain on		Currency
					Value		Defined		Translation
	Share		Contributed		Gain (Loss) on		Benefit		of Foreign				Total		Retained		Total
	Capital		Surplus		Investments		Plans 1		Operations		Other		AOCI		Earnings		Equity 2
BALANCE – DECEMBER 31, 2017	1,806		230		73		-		(2)		(46)		25		6,242		8,303
Merger impact	15,898		7		-		-		-		-		-		(1)		15,904
Net earnings	-		-		-		-		-		-		-		3,573		3,573
Other comprehensive (loss) income	-		-		(99)		54		(249)		(8)		(302)		-		(302)
Shares repurchased	(998)		(23)		-		-		-		-		-		(831)		(1,852)
Dividends declared	-		-		-		-		-		-		-		(1,273)		(1,273)
Effect of share-based compensation including issuance of common shares	34		17		-		-		-		-		-		-		51
Transfer of net loss on sale of investment	-		-		19		-		-		-		19		(19)		-
Transfer of net loss on cash flow hedges	-		-		-		-		-		21		21		-		21
Transfer of net actuarial gain on defined benefit plans	-		-		-		(54)		-		-		(54)		54		-
BALANCE – DECEMBER 31, 2018	16,740		231		(7)		-		(251)		(33)		(291)		7,745		24,425
Net earnings	-		-		-		-		-		-		-		992		992
Other comprehensive (loss) income	-		-		(25)		7		47		7		36		-		36
Shares repurchased	(992)		-		-		-		-		-		-		(886)		(1,878)
Dividends declared	-		-		-		-		-		-		-		(754)		(754)
Effect of share-based compensation including issuance of common shares	23		17		-		-		-		-		-		-		40
Transfer of net loss on investment	-		-		3		-		-		-		3		(3)		-
Transfer of net loss on cash flow hedges	-		-		-		-		-		8		8		-		8
Transfer of net actuarial gain on defined benefit plans	-		-		-		(7)		-		-		(7)		7		-
BALANCE – DECEMBER 31, 2019	15,771		248		(29)		-		(204)		(18)		(251)		7,101		22,869
1 Any amounts incurred during a period were closed out to retained earnings at each period-end. Therefore, no balance exists at the beginning or end of period. 2 All equity transactions were attributable to common shareholders.
(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Balance Sheets

As at		December 31, 2019		December 31, 2018
ASSETS
Current assets
Cash and cash equivalents		671		2,314
Receivables		3,542		3,342
Inventories		4,975		4,917
Prepaid expenses and other current assets		1,477		1,089
		10,665		11,662
Non-current assets
Property, plant and equipment	Note 1	20,335		18,796
Goodwill		11,986		11,431
Other intangible assets		2,428		2,210
Investments		821		878
Other assets		564		525
TOTAL ASSETS		46,799		45,502
LIABILITIES
Current liabilities
Short-term debt		976		629
Current portion of long-term debt		502		995
Current portion of lease liabilities	Note 1	214		8
Payables and accrued charges		7,437		6,703
		9,129		8,335
Non-current liabilities
Long-term debt		8,553		7,579
Lease liabilities	Note 1	859		12
Deferred income tax liabilities		3,145		2,907
Pension and other post-retirement benefit liabilities		433		395
Asset retirement obligations and accrued environmental costs		1,650		1,673
Other non-current liabilities		161		176
TOTAL LIABILITIES		23,930		21,077
SHAREHOLDERS’ EQUITY
Share capital		15,771		16,740
Contributed surplus		248		231
Accumulated other comprehensive loss		(251)		(291)
Retained earnings		7,101		7,745
TOTAL SHAREHOLDERS’ EQUITY		22,869		24,425
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		46,799		45,502
(See Notes to the Condensed Consolidated Financial Statements)

Notes to the Condensed Consolidated Financial Statements

As at and for the Three and Twelve Months Ended December 31, 2019

NOTE 1 BASIS OF PRESENTATION

Nutrien Ltd. (collectively with its subsidiaries, known as “Nutrien”, “we”, “us, “our” or the “Company”) is the world’s largest provider of crop inputs and services. Nutrien plays a critical role in helping growers around the globe increase food production in a sustainable manner. Disclosures related to the merger of Potash Corporation of Saskatchewan Inc. and Agrium Inc. (the “Merger”) can be found in Note 3 of our 2018 annual consolidated financial statements.

Our accounting policies are in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The accounting policies and methods of computation used in preparing these unaudited condensed consolidated financial statements are consistent with those used in the preparation of our 2018 annual consolidated financial statements, with the exception of IFRS 16, “Leases” (“IFRS 16”), which was adopted effective January 1, 2019, and resulted in an increase to property, plant and equipment and recognition of lease liabilities of approximately $1 billion at January 1, 2019. Other impacts from adoption of IFRS 16 are disclosed in Note 13 of our first quarter 2019 unaudited condensed consolidated financial statements.

These unaudited condensed consolidated financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with our 2018 annual consolidated financial statements. Our 2019 annual consolidated financial statements which are expected to be issued in February 2020 will include additional information under IFRS.

Certain immaterial 2018 figures have been reclassified or grouped together in the condensed consolidated statements of earnings, condensed consolidated statements of cash flows, and in the segment information.

In management’s opinion, the unaudited condensed consolidated financial statements include all adjustments necessary to fairly present such information in all material respects.

NOTE 2 SEGMENT INFORMATION

The Company’s four reportable operating segments are: Retail, Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and provides services directly to growers through a network of farm centers in North and South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each produces. In the first quarter of 2019, our Chief Operating Decision Maker reassessed product groupings and decided to evaluate the performance of ammonium sulfate as part of the Nitrogen segment, rather than the Phosphate and Sulfate segment, as previously reported in our 2018 annual consolidated financial statements. Comparative amounts for the Nitrogen and Phosphate segments were restated, including EBITDA, which is calculated as net earnings (loss) from continuing operations before finance costs, income taxes and depreciation and amortization. For the three months ended December 31, 2018, Nitrogen reflected increases of $30, $8 and $12 in sales, gross margin and EBITDA, respectively, and for the twelve months ended December 31, 2018, Nitrogen reflected increases of $121, $40 and $53 in sales, gross margin and EBITDA, respectively, as well as $377 in assets as at December 31, 2018, with corresponding decreases in Phosphate. In addition, the “Others” segment was renamed to “Corporate and Others”.

		Three Months Ended December 31, 2019
										Corporate
		Retail		Potash		Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	– third party	2,161		374		575		298		34		-		3,442
	– intersegment	10		29		125		43		-		(207)		-
Sales	– total	2,171		403		700		341		34		(207)		3,442
Freight, transportation and distribution		-		53		97		54		-		(32)		172
Net sales		2,171		350		603		287		34		(175)		3,270
Cost of goods sold		1,435		211		496		281		34		(201)		2,256
Gross margin		736		139		107		6		-		26		1,014
Selling expenses		668		2		4		-		(4)		-		670
General and administrative expenses		30		6		4		4		73		-		117
Provincial mining and other taxes		-		50		-		-		(11)		-		39
Share-based compensation expense		-		-		-		-		9		-		9
Impairment of assets		-		-		-		-		87		-		87
Other (income) expenses		(31)		(2)		(19)		5		76		-		29
Earnings (loss) before finance costs and income taxes		69		83		118		(3)		(230)		26		63
Depreciation and amortization		162		66		141		57		10		-		436
EBITDA		231		149		259		54		(220)		26		499
Assets – at December 31, 2019		19,990		11,696		10,991		2,198		2,129		(205)		46,799

		Three Months Ended December 31, 2018
										Corporate
		Retail		Potash		Nitrogen 1		Phosphate 1		and Others		Eliminations		Consolidated
Sales	– third party	2,003		648		675		399		37		-		3,762
	– intersegment	14		40		164		65		-		(283)		-
Sales	– total	2,017		688		839		464		37		(283)		3,762
Freight, transportation and distribution		-		51		94		58		-		(14)		189
Net sales		2,017		637		745		406		37		(269)		3,573
Cost of goods sold		1,355		271		521		393		37		(263)		2,314
Gross margin		662		366		224		13		-		(6)		1,259
Selling expenses		571		5		8		2		(7)		-		579
General and administrative expenses		27		2		3		3		76		-		111
Provincial mining and other taxes		-		56		1		-		1		-		58
Share-based compensation recovery		-		-		-		-		(33)		-		(33)
Other (income) expenses		(18)		1		(1)		8		8		-		(2)
Earnings (loss) before finance costs and income taxes		82		302		213		-		(45)		(6)		546
Depreciation and amortization		132		92		108		53		13		-		398
EBITDA		214		394		321		53		(32)		(6)		944
Assets – at December 31, 2018		17,964		11,710		10,386		2,406		3,678		(642)		45,502
1 Comparative figures have been restated to reflect the change in the sulfate product grouping from Phosphate and Sulfate to Nitrogen.

		Twelve Months Ended December 31, 2019
										Corporate
		Retail		Potash		Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	– third party	13,183		2,702		2,608		1,397		133		-		20,023
	– intersegment	38		207		612		203		-		(1,060)		-
Sales	– total	13,221		2,909		3,220		1,600		133		(1,060)		20,023
Freight, transportation and distribution		-		305		372		232		-		(141)		768
Net sales		13,221		2,604		2,848		1,368		133		(919)		19,255
Cost of goods sold		9,981		1,103		2,148		1,373		133		(924)		13,814
Gross margin		3,240		1,501		700		(5)		-		5		5,441
Selling expenses		2,484		9		25		5		(18)		-		2,505
General and administrative expenses		112		6		15		7		264		-		404
Provincial mining and other taxes		-		287		2		1		2		-		292
Share-based compensation expense		-		-		-		-		104		-		104
Impairment of assets		-		-		-		-		120		-		120
Other expenses (income)		8		(4)		(46)		25		171		-		154
Earnings (loss) before finance costs and income taxes		636		1,203		704		(43)		(643)		5		1,862
Depreciation and amortization		595		390		535		237		42		-		1,799
EBITDA		1,231		1,593		1,239		194		(601)		5		3,661
Assets – at December 31, 2019		19,990		11,696		10,991		2,198		2,129		(205)		46,799

		Twelve Months Ended December 31, 2018
										Corporate
		Retail		Potash		Nitrogen 1		Phosphate 1		and Others		Eliminations		Consolidated
Sales	– third party	12,470		2,796		2,712		1,508		150		-		19,636
	– intersegment	50		220		626		268		-		(1,164)		-
Sales	– total	12,520		3,016		3,338		1,776		150		(1,164)		19,636
Freight, transportation and distribution		-		349		373		215		-		(73)		864
Net sales		12,520		2,667		2,965		1,561		150		(1,091)		18,772
Cost of goods sold		9,485		1,183		2,145		1,473		150		(1,056)		13,380
Gross margin		3,035		1,484		820		88		-		(35)		5,392
Selling expenses		2,303		14		32		10		(22)		-		2,337
General and administrative expenses		100		10		20		9		284		-		423
Provincial mining and other taxes		-		244		3		1		2		-		250
Share-based compensation expense		-		-		-		-		116		-		116
Impairment of assets		-		1,809		-		-		-		-		1,809
Other (income) expenses		(75)		14		(8)		6		106		-		43
Earnings (loss) before finance costs and income taxes		707		(607)		773		62		(486)		(35)		414
Depreciation and amortization		499		404		442		193		54		-		1,592
EBITDA		1,206		(203)		1,215		255		(432)		(35)		2,006
Assets – at December 31, 2018		17,964		11,710		10,386		2,406		3,678		(642)		45,502
1 Comparative figures have been restated to reflect the change in the sulfate product grouping from Phosphate and Sulfate to Nitrogen.

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