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Nutrien Reports Second Quarter 2023 Results

02.08.2023 | Business Wire

Nutrien Reports Second Quarter 2023 Results

Revising full-year guidance to reflect factors impacting offshore potash sales through Canpotex and lower global potash prices than previously anticipated. Announcing strategic actions expected to reduce controllable costs and enhance free cash flow.

All amounts are in US dollars except as otherwise noted

Nutrien Ltd. (TSX and NYSE: NTR) announced today its second quarter 2023 results, with net earnings of $448 million ($0.89 diluted net earnings per share), which includes non-cash impairments of $465 million primarily related to our South American Retail goodwill and $233 million related to our Phosphate property, plant and equipment. Second quarter 2023 adjusted net earnings per share¹ was $2.53 and adjusted EBITDA¹ was $2.5 billion.

"Nutrien's results have been impacted by unprecedented volatility in global crop input markets over the last 18 months. We continue to see demand strengthen in our key markets, in particular North America, however the process of recovery has been more uneven in offshore markets," commented Ken Seitz, Nutrien's President and CEO.

"We are announcing a number of strategic actions to reduce our controllable costs and enhance free cash flow in 2023 and beyond. This includes an indefinite pause of our potash ramp up and suspension of work on our Geismar clean ammonia project. These actions, along with other operational efficiency initiatives, demonstrate our commitment to disciplined capital allocation and focus on long-term value creation," added Mr. Seitz.

Financial Highlights²:

Generated net earnings of $1.0 billion ($2.03 diluted net earnings per share) and adjusted EBITDA¹ of $3.9 billion ($3.63 adjusted net earnings per share) in the first half of 2023, down significantly from the record levels achieved in the first half of 2022. This was primarily due to lower net realized fertilizer prices, offshore Potash sales volumes and Nutrien Ag Solutions ("Retail") earnings.
Retail adjusted EBITDA declined to $1.1 billion in the second quarter primarily due to lower gross margin for crop nutrients and crop protection products. North American crop nutrient sales volumes were up 16 percent in the second quarter compared to the same period in the prior year and per-tonne margins in the US returned to more normalized levels. Crop protection margins were pressured by lower prices for certain commodity products and the impact of selling through higher cost inventory.
Potash adjusted EBITDA declined to $654 million in the second quarter as weaker net realized selling prices and lower offshore sales volumes more than offset higher North American sales volumes. Lower demand from customers in Asia was partially offset by increased Canpotex sales volumes to Brazil.
Nitrogen adjusted EBITDA declined to $569 million in the second quarter due to lower net realized selling prices for all major nitrogen products, which more than offset higher sales volumes and lower gas costs.
Recognized a $465 million non-cash impairment primarily to goodwill relating to our South American Retail assets in the second quarter of 2023, mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions, and higher interest rates. Nutrien also recognized a $233 million non-cash impairment in Phosphate relating to our White Springs property, plant and equipment due to the volatility of forecasted phosphate margins.
Repurchased approximately 13.4 million shares year-to-date as of June 30, 2023, under our normal course issuer bid programs, for approximately $1.0 billion. Cash used for dividends and share repurchases in the first half totaled $1.6 billion.
Full year 2023 adjusted EBITDA and adjusted net earnings per share guidance¹ was revised to $5.5 to $6.7 billion and $3.85 to $5.60 per share, respectively.

1.		These (and any related guidance, if applicable) are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section for further information.
2.		Our discussion of highlights set out on this page is a comparison of the results for the three and six months ended June 30, 2023 to the results for the three and six months ended June 30, 2022, unless otherwise noted.

Strategic Actions:

Indefinitely pausing the ramp-up of our annual potash production capability to 18 million tonnes in response to market conditions, following the completion of in-flight projects in the second half of 2023.
Suspending work on our proposed 1.2 million tonne Geismar clean ammonia project. This decision is due to an increase in expected capital costs compared to our initial estimates, continued uncertainty on the timing of emerging uses for clean ammonia, and the prioritization of other capital allocation alternatives.
Reducing planned capital expenditures across smaller investment projects in our Retail business and deferring the timing of capital spend on select Nitrogen brownfield projects as we prioritize capital and provide flexibility on future allocation alternatives.
Expecting to lower capital expenditures by approximately $200 million in 2023 and targeting a $100 million reduction in expenses compared to our previous estimates. We now expect total capital expenditures of $2.8 billion in 2023, with further reductions anticipated in 2024.

Management's Discussion and Analysis

The following management's discussion and analysis ("MD&A") is the responsibility of management and is dated as of August 2, 2023. The Board of Directors ("Board") of Nutrien carries out its responsibility for review of this disclosure principally through its Audit Committee, composed entirely of independent directors. The Audit Committee reviews and, prior to its publication, approves this disclosure pursuant to the authority delegated to it by the Board. The term "Nutrien" refers to Nutrien Ltd. and the terms "we", "us", "our", "Nutrien" and "the Company" refer to Nutrien and, as applicable, Nutrien and its direct and indirect subsidiaries on a consolidated basis. Additional information relating to Nutrien (which, except as otherwise noted, is not incorporated by reference herein), including our annual report dated February 16, 2023 ("2022 Annual Report"), which includes our annual audited consolidated financial statements and MD&A, and our annual information form dated February 16, 2023, each for the year ended December 31, 2022, can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. No update is provided to the disclosure in our 2022 annual MD&A except for material information since the date of our annual MD&A. The Company is a foreign private issuer under the rules and regulations of the US Securities and Exchange Commission (the "SEC").

This MD&A is based on and should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements as at and for the three and six months ended June 30, 2023 ("interim financial statements") based on International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and prepared in accordance with International Accounting Standard ("IAS") 34 "Interim Financial Reporting", unless otherwise noted. This MD&A contains certain non-IFRS financial measures and ratios and forward-looking statements, which are described in the "Non-IFRS Financial Measures" and the "Forward-Looking Statements" sections, respectively.

Market Outlook and Guidance

Agriculture and Retail

Weather and geopolitical challenges are contributing to tight global grain and oilseed supply and providing support for prices. The US Midwest has experienced some of the driest conditions on record this growing season, which has reduced expected yield potential to below trend. Crop production and export volumes from Ukraine continue to be negatively impacted by the war, with Russia's cancelation of the Black Sea grain deal creating additional supply uncertainty.
Crop prices have been volatile, but remain historically high, with new crop corn, wheat, and soybean prices 15 to 20 percent above the ten-year average. Fertilizer affordability has improved significantly compared to the previous year due to the continued strength in crop prices and reduction in fertilizer prices.
Dry conditions in North America have impacted in-season nitrogen and crop protection applications. Crop development is currently tracking ahead of schedule, which could support an extended fall application window for crop inputs.
Brazilian grain and oilseed prices were pressured by the record crop size and limitations in logistics and export capacity. However, the demand for Brazilian soybeans is expected to remain robust and higher international prices are expected to support a two to three percent increase in planted acreage. We believe Brazilian growers have purchased a lower-than-normal proportion of inputs for this time of year, which should support strong demand leading into their spring planting season that starts in September.
Australian crop production has benefitted from timely precipitation and has been supportive of crop input demand.

Crop Nutrient Markets

Global potash prices weakened through the second quarter of 2023, driven by continued destocking in offshore markets and the uncertainty created by the delay in the Chinese potash contract. We have seen stronger engagement in offshore spot markets, led by Brazil, following the settlement of the Chinese potash contract in June 2023. We believe channel inventories in North America ended the first half at multi-year lows and are seeing strong demand in the third quarter.
We project potash exports from Russia to be down 3.0 to 4.0 million tonnes and from Belarus down 4.0 to 5.0 million tonnes compared to 2021 levels. We expect Canadian potash exports will be constrained by logistical challenges primarily due to the strike at the Port of Vancouver and as a result, we have lowered our projected global shipment range for 2023 to between 63 and 65 million tonnes.
Global urea and nitrate prices have strengthened in the third quarter of 2023 driven by increased demand and supply constraints, including plant turnarounds and reduced Egyptian gas supplies. Ammonia prices have been impacted by lower-than-expected European natural gas prices, weak downstream industrial demand, and reduced imports by phosphate producers. However, we expect ammonia markets to strengthen during the balance of the year due to low global inventories, continued supply constraints, and higher values for other nitrogen products.
Dry phosphate prices declined throughout the second quarter of 2023, but channel inventories were low to end the North American spring season and demand has strengthened in the second half. Sulfur prices remain historically low compared to finished phosphate prices, which in combination with lower ammonia prices has offset a portion of the price declines.

Financial Guidance

Based on market factors detailed above, we are revising full-year 2023 adjusted EBITDA guidance¹ to $5.5 to $6.7 billion and full-year 2023 adjusted net earnings guidance¹ to $3.85 to $5.60 per share. We now project cash provided by operations of $4.4 to $4.9 billion, which reflects expectations of lower earnings.
Retail adjusted EBITDA guidance was lowered primarily to reflect incremental pressure on crop input margins in South America and the impact of dry conditions in North America.
Potash adjusted EBITDA guidance was lowered due to decreased global potash prices and lower offshore sales volumes, which are impacted by logistical challenges created by the strike at the port of Vancouver and an outage at Canpotex's Portland terminal.
Nitrogen adjusted EBITDA guidance was revised primarily to reflect lower forecasted ammonia benchmark prices, partially offset by the expectation for lower natural gas prices.
Effective tax rate on adjusted earnings guidance was increased mainly due to the second quarter impacts of the impairments.

These (and any related guidance, if applicable) are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section for further information.

All guidance numbers, including those noted above are outlined in the table below. Refer to page 56 of Nutrien's 2022 Annual Report for related assumptions and sensitivities, except as set forth below.

	Guidance Ranges ¹ as of
	August 2, 2023		May 10, 2023
(billions of US dollars, except as otherwise noted)	Low	High	Low	High
Adjusted net earnings per share (in US dollars) ^2,3	3.85	5.60	5.50	7.50
Adjusted EBITDA ²	5.5	6.7	6.5	8.0
Retail adjusted EBITDA	1.45	1.60	1.60	1.75
Potash adjusted EBITDA	2.00	2.50	2.65	3.35
Nitrogen adjusted EBITDA	1.80	2.30	1.95	2.55
Phosphate adjusted EBITDA (in millions of US dollars)	500	600	550	700
Potash sales tonnes (millions) ⁴	12.6	13.2	13.5	14.3
Nitrogen sales tonnes (millions) ⁴	10.8	11.2	10.8	11.4
Depreciation and amortization	2.1	2.2	2.1	2.2
Effective tax rate on adjusted earnings (%)	25.5	26.0	23.5	24.0
1 See the "Forward-Looking Statements" section.
2 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.
3 Assumes 497 million shares outstanding for August 2, 2023 adjusted net EPS guidance.
4 Manufactured product only. Nitrogen sales tonnes includes ESN® products.

Consolidated Results

	Three Months Ended June 30						Six Months Ended June 30
(millions of US dollars, except as otherwise noted)	2023		2022		% Change		2023		2022		% Change
Sales	11,654		14,506		(20	)	17,761		22,163		(20	)
Freight, transportation and distribution	252		221		14		451		424		6
Cost of goods sold	8,236		8,286		(1	)	12,231		12,483		(2	)
Gross margin	3,166		5,999		(47	)	5,079		9,256		(45	)
Expenses	2,038		1,054		93		3,012		2,312		30
Net earnings	448		3,601		(88	)	1,024		4,986		(79	)
Adjusted EBITDA ¹	2,478		4,993		(50	)	3,899		7,608		(49	)
Diluted net earnings per share	0.89		6.51		(86	)	2.03		8.99		(77	)
Adjusted net earnings per share ¹	2.53		5.85		(57	)	3.63		8.53		(57	)
Cash provided by operating activities	2,243		2,558		(12	)	1,385		2,496		(45	)
Cash used in investing activities	(858	)	(517	)	66		(1,552	)	(974	)	59
Cash used for dividends and share repurchases ²	(413	)	(1,228	)	(66	)	(1,556	)	(2,127	)	(27	)
1 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.
2 This is a supplementary financial measure. See the "Other Financial Measures" section.

Net earnings and adjusted EBITDA decreased in the second quarter and first half of 2023 compared to the same periods in 2022, mainly due to lower net realized selling prices in all segments, weaker offshore Potash sales volumes, and lower Retail gross margin for crop nutrients and crop protection products. This was partially offset by decreased cost of goods sold from lower natural gas and royalty costs, lower provincial mining taxes, and higher sales volumes in Nitrogen and Retail crop nutrients. In the second quarter of 2023, we recorded a non-cash impairment of $465 million primarily related to our South American Retail goodwill and $233 million related to our White Springs property, plant and equipment, which impacted net earnings. The decrease in cash provided by operating activities in the second quarter and first half compared to the same periods in 2022 was primarily due to lower earnings across all segments.

Segment Results

Our discussion of segment results set out on the following pages is a comparison of the results for the three and six months ended June 30, 2023 to the results for the three and six months ended June 30, 2022, unless otherwise noted.

Nutrien Ag Solutions ("Retail")

	Three Months Ended June 30
(millions of US dollars, except	Dollars						Gross Margin						Gross Margin (%)
as otherwise noted)	2023		2022		% Change		2023		2022		% Change		2023	2022
Sales
Crop nutrients	3,986		4,548		(12	)	629		911		(31	)	16	20
Crop protection products	3,070		2,983		3		673		805		(16	)	22	27
Seed	1,428		1,269		13		265		283		(6	)	19	22
Merchandise	273		280		(3	)	47		51		(8	)	17	18
Nutrien Financial	122		91		34		122		91		34		100	100
Services and other	308		310		(1	)	254		258		(2	)	82	83
Nutrien Financial elimination ¹	(59	)	(59	)	?		(59	)	(59	)	?		100	100
	9,128		9,422		(3	)	1,931		2,340		(17	)	21	25
Cost of goods sold	7,197		7,082		2
Gross margin	1,931		2,340		(17	)
Expenses ^2,3	1,520		1,088		40
Earnings before finance costs and taxes ("EBIT")	411		1,252		(67	)
Depreciation and amortization	188		175		7
EBITDA	599		1,427		(58	)
Adjustments ³	468		?		n/m
Adjusted EBITDA	1,067		1,427		(25	)
1 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.
2 Includes selling expenses of $971 million (2022 - $1,013 million).
3 Includes impairment of assets of $465 million (2022 - nil). See Notes 2 and 3 to the interim financial statements.

	Six Months Ended June 30
(millions of US dollars, except	Dollars						Gross Margin						Gross Margin (%)
as otherwise noted)	2023		2022		% Change		2023		2022		% Change		2023	2022
Sales
Crop nutrients	5,321		6,135		(13	)	770		1,203		(36	)	14	20
Crop protection products	4,224		4,370		(3	)	881		1,087		(19	)	21	25
Seed	1,935		1,727		12		337		349		(3	)	17	20
Merchandise	519		514		1		91		92		(1	)	18	18
Nutrien Financial	179		140		28		179		140		28		100	100
Services and other	456		485		(6	)	372		402		(7	)	82	83
Nutrien Financial elimination	(84	)	(88	)	(5	)	(84	)	(88	)	(5	)	100	100
	12,550		13,283		(6	)	2,546		3,185		(20	)	20	24
Cost of goods sold	10,004		10,098		(1	)
Gross margin	2,546		3,185		(20	)
Expenses ^1,2	2,350		1,843		28
EBIT	196		1,342		(85	)
Depreciation and amortization	369		344		7
EBITDA	565		1,686		(66	)
Adjustments ²	468		(19	)	n/m
Adjusted EBITDA	1,033		1,667		(38	)
1 Includes selling expenses of $1,736 million (2022 - $1,735 million).
2 Includes impairment of assets of $465 million (2022 - nil). See Notes 2 and 3 to the interim financial statements.

Retail adjusted EBITDA was lower in the second quarter and first half of 2023 compared to the record levels achieved in 2022 primarily due to lower gross margin for both crop nutrients and crop protection products. Selling expenses declined in the second quarter of 2023 due to lower incentive payments, partially offset by increased expenses resulting from acquisitions completed in 2022 and inflation. We recognized a $465 million non-cash impairment primarily to goodwill relating to our South American Retail assets in the second quarter of 2023, mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions, and higher interest rates.
Crop nutrients sales decreased in the second quarter and first half of 2023 primarily due to lower selling prices across all regions compared to the exceptionally strong periods in 2022. While crop nutrients margins and gross margin per tonne decreased compared to the same periods, we continued to see growth in proprietary nutritional products and US crop nutrient margins increased significantly compared to the first quarter of 2023 as we worked through high-cost inventory. Sales volumes increased for both the second quarter and first half compared to the prior year, supported by higher planted acreage and a return to more normalized application rates in North America. Dry conditions across the US Midwest in May and early June of 2023 impacted some late season application of nitrogen products.
Crop protection products sales were marginally higher in the second quarter of 2023, but down during the first half of the year due to decreased prices for certain commodity products compared to the historically strong comparable period in 2022. This also impacted gross margin in the second quarter and first half in addition to the impact of selling through higher cost inventory. Dry conditions in the US Midwest impacted demand for certain crop protection products during the second quarter.
Seed sales increased in the second quarter and first half of 2023 primarily due to increased corn sales in the US Corn Belt and Southern states. Gross margin for the same periods decreased mainly due to competitive pricing pressures.
Nutrien Financial sales increased in the second quarter and first half of 2023 due to higher utilization of our financing offerings in the US as well as the launch of our digitally-enabled financing program in Australia, called NPay.

Potash

	Three Months Ended June 30
(millions of US dollars, except	Dollars					Tonnes (thousands)					Average per Tonne
as otherwise noted)	2023	2022	% Change			2023	2022	% Change			2023	2022	% Change
Manufactured product
Net sales
North America	469	680		(31	)	1,226	933		31		383	729		(47	)
Offshore	540	1,988		(73	)	2,156	2,776		(22	)	250	716		(65	)
	1,009	2,668		(62	)	3,382	3,709		(9	)	298	719		(59	)
Cost of goods sold	353	399		(12	)						104	107		(3	)
Gross margin - total	656	2,269		(71	)						194	612		(68	)
Expenses ¹	117	372		(69	)	Depreciation and amortization					34	35		(3	)
EBIT	539	1,897		(72	)	Gross margin excluding depreciation
Depreciation and amortization	115	130		(12	)	and amortization - manufactured ²					228	647		(65	)
EBITDA / Adjusted EBITDA	654	2,027		(68	)	Potash controllable cash cost of
						product manufactured ²					60	52		15
1 Includes provincial mining taxes of $104 million (2022 - $362 million).
2 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

	Six Months Ended June 30
(millions of US dollars, except	Dollars					Tonnes (thousands)					Average per Tonne
as otherwise noted)	2023	2022	% Change			2023	2022	% Change			2023	2022	% Change
Manufactured product
Net sales
North America	812	1,513		(46	)	2,080	2,151		(3	)	391	703		(44	)
Offshore	1,199	3,005		(60	)	3,938	4,601		(14	)	304	653		(53	)
	2,011	4,518		(55	)	6,018	6,752		(11	)	334	669		(50	)
Cost of goods sold	658	704		(7	)						109	104		5
Gross margin - total	1,353	3,814		(65	)						225	565		(60	)
Expenses ¹	235	623		(62	)	Depreciation and amortization					35	36		(2	)
EBIT	1,118	3,191		(65	)	Gross margin excluding depreciation
Depreciation and amortization	212	242		(12	)	and amortization - manufactured					260	601		(57	)
EBITDA / Adjusted EBITDA	1,330	3,433		(61	)	Potash controllable cash cost of
						product manufactured					61	51		20
1 Includes provincial mining taxes of $223 million (2022 - $611 million).

Potash adjusted EBITDA declined in the second quarter and first half of 2023 due to lower net realized selling prices and offshore sales volumes. Nutrien is indefinitely pausing the ramp-up of its annual potash production capability to 18 million tonnes in response to market conditions, following the completion of in-flight projects in the second half of 2023.
Sales volumes in North America were the highest second quarter on record. Offshore sales volumes declined in the second quarter and first half 2023 due to reduced shipments to customers in Asia, partially offset by record first half Canpotex sales volumes to Brazil.
Net realized selling price decreased in the second quarter and first half of 2023 compared to the historically strong periods in 2022, due to a decline in benchmark prices and higher logistics costs related to an outage at Canpotex's Portland port facility.
Cost of goods sold per tonne decreased in the second quarter of 2023 primarily due to lower royalties. First half cost of goods sold per tonne was higher primarily due to lower production volumes and increased maintenance activities.

Canpotex Sales by Market

(percentage of sales volumes, except as	Three Months Ended June 30				Six Months Ended June 30
otherwise noted)	2023	2022	Change		2023	2022	Change
Latin America	55	40	15		46	36	10
Other Asian markets ¹	19	28	(9	)	28	35	(7	)
Other markets	10	11	(1	)	12	11	1
India	10	9	1		6	6	?
China	6	12	(6	)	8	12	(4	)
	100	100			100	100
1 All Asian markets except China and India.

Nitrogen

	Three Months Ended June 30
(millions of US dollars, except	Dollars							Tonnes (thousands)				Average per Tonne
as otherwise noted)	2023		2022		% Change			2023	2022	% Change		2023	2022	% Change
Manufactured product
Net sales
Ammonia	332		743			(55	)	681	643		6	488	1,157		(58	)
Urea and ESN^® ¹	450		678			(34	)	952	894		6	472	757		(38	)
Solutions, nitrates and sulfates	333		536			(38	)	1,312	1,142		15	254	469		(46	)
	1,115		1,957			(43	)	2,945	2,679		10	379	730		(48	)
Cost of goods sold ¹	697		911			(23	)					237	339		(30	)
Gross margin - manufactured	418		1,046			(60	)					142	391		(64	)
Gross margin - other ^1,2	(19	)	12			n/m		Depreciation and amortization¹				55	52		6
Gross margin - total	399		1,058			(62	)	Gross margin excluding depreciation
(Income) expenses ³	(8	)	(43	)		(81	)	and amortization - manufactured ⁴				197	443		(56	)
EBIT	407		1,101			(63	)	Ammonia controllable cash cost of
Depreciation and amortization	162		139			17		product manufactured ⁴				55	58		(5	)
EBITDA / Adjusted EBITDA	569		1,240			(54	)
1 Certain immaterial 2022 figures have been reclassified.
2 Includes other nitrogen and purchased products and comprises net sales of $101 million (2022 - $272 million) less cost of goods sold of $120 million (2022 - $260 million).
3 Includes earnings from equity-accounted investees of $31 million (2022 - $76 million).
4 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

	Six Months Ended June 30
(millions of US dollars, except	Dollars							Tonnes (thousands)					Average per Tonne
as otherwise noted)	2023		2022		% Change			2023	2022	% Change			2023	2022	% Change
Manufactured product
Net sales
Ammonia	717		1,303			(45	)	1,215	1,238		(2	)	591	1,052		(44	)
Urea and ESN^® ¹	911		1,193			(24	)	1,699	1,545		10		536	772		(31	)
Solutions, nitrates and sulfates	666		975			(32	)	2,388	2,221		8		279	439		(36	)
	2,294		3,471			(34	)	5,302	5,004		6		433	693		(38	)
Cost of goods sold ¹	1,345		1,583			(15	)						254	316		(20	)
Gross margin - manufactured	949		1,888			(50	)						179	377		(53	)
Gross margin - other ^1,2	(9	)	30			n/m		Depreciation and amortization					56	52		7
Gross margin - total	940		1,918			(51	)	Gross margin excluding depreciation
(Income) expenses ³	(9	)	(55	)		(84	)	and amortization - manufactured					235	429		(45	)
EBIT	949		1,973			(52	)	Ammonia controllable cash cost of
Depreciation and amortization	296		262			13		product manufactured					59	57		4
EBITDA / Adjusted EBITDA	1,245		2,235			(44	)
1 Certain immaterial 2022 figures have been reclassified.
2 Includes other nitrogen and purchased products and comprises net sales of $234 million (2022 - $499 million) less cost of goods sold of $243 million (2022 - $469 million).
3 Includes earnings from equity-accounted investees of $61 million (2022 - $113 million).

Nitrogen adjusted EBITDA decreased in the second quarter and first half of 2023 due to lower net realized selling prices for all major nitrogen products, which more than offset higher sales volumes and lower natural gas costs. During the second quarter of 2023 our ammonia operating rate decreased to 85 percent ¹, primarily due to increased turnaround activity. Nutrien is suspending work on its proposed 1.2 million tonne Geismar clean ammonia project due to an increase in expected capital costs compared to our initial estimates and continued uncertainty on the timing of emerging uses for clean ammonia. We are also deferring the timing of expenditures on select Nitrogen brownfield expansions as we prioritize capital and provide flexibility on future allocation alternatives.
Sales volumes were higher in the second quarter and first half of 2023 primarily due to increased demand for nitrates and sulfates and strong spring seasonal demand for Urea and ESN^®, which more than offset lower ammonia production in Trinidad caused by natural gas curtailments and additional turnaround activity at our North American plants.
Net realized selling price in the second quarter and first half of 2023 was lower for all major nitrogen products primarily due to weaker benchmark prices resulting from lower energy prices in key nitrogen producing regions.
Cost of goods sold per tonne decreased in the second quarter and first half of 2023 primarily due to lower natural gas costs. Ammonia controllable cash cost of product manufactured increased for the first half mainly due to higher input costs and lower production.

Natural Gas Prices in Cost of Production

	Three Months Ended June 30						Six Months Ended June 30
(US dollars per MMBtu, except as otherwise noted)	2023		2022		% Change		2023		2022		% Change
Overall gas cost excluding realized derivative impact	2.76		8.54		(68	)	3.85		7.72		(50	)
Realized derivative impact	(0.02	)	(0.06	)	(67	)	(0.01	)	(0.04	)	(75	)
Overall gas cost	2.74		8.48		(68	)	3.84		7.68		(50	)

Average NYMEX	2.10		7.17		(71	)	2.76		6.06		(54	)
Average AECO	1.74		4.95		(65	)	2.47		4.28		(42	)

Natural gas prices in our cost of production decreased in the second quarter and first half of 2023 as a result of lower North American gas index prices and decreased natural gas costs in Trinidad, where our natural gas prices are linked to ammonia benchmark prices.

Excludes Trinidad and Joffre.

Phosphate

	Three Months Ended June 30
(millions of US dollars, except	Dollars							Tonnes (thousands)					Average per Tonne
as otherwise noted)	2023		2022		% Change			2023	2022	% Change			2023	2022	% Change
Manufactured product
Net sales
Fertilizer	254		325			(22	)	426	366		16		595	888		(33	)
Industrial and feed	176		189			(7	)	160	190		(16	)	1,100	996		10
	430		514			(16	)	586	556		5		732	925		(21	)
Cost of goods sold	377		352			7							643	634		1
Gross margin - manufactured	53		162			(67	)						89	291		(69	)
Gross margin - other ¹	(4	)	(6	)		(33	)	Depreciation and amortization					121	74		64
Gross margin - total	49		156			(69	)	Gross margin excluding depreciation
Expenses (income) ²	240		(437	)		n/m		and amortization - manufactured ³					210	365		(42	)
EBIT	(191	)	593			n/m
Depreciation and amortization	71		41			73
EBITDA	(120	)	634			n/m
Adjustments ²	233		(450	)		n/m
Adjusted EBITDA	113		184			(39	)
1 Includes other phosphate and purchased products and comprises net sales of $72 million (2022 - $76 million) less cost of goods sold of $76 million (2022 - $82 million).
2 Includes impairment of assets of $233 million (2022 - reversal of impairment of assets of $(450) million). See Notes 2 and 3 to the interim financial statements.
3 This is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section.

	Six Months Ended June 30
(millions of US dollars, except	Dollars							Tonnes (thousands)					Average per Tonne
as otherwise noted)	2023		2022		% Change			2023	2022	% Change			2023	2022	% Change
Manufactured product
Net sales
Fertilizer	518		718			(28	)	814	826		(1	)	636	869		(27	)
Industrial and feed	358		359			?		320	381		(16	)	1,118	943		19
	876		1,077			(19	)	1,134	1,207		(6	)	772	892		(13	)
Cost of goods sold	734		712			3							647	589		10
Gross margin - manufactured	142		365			(61	)						125	303		(59	)
Gross margin - other ¹	(6	)	(2	)		200		Depreciation and amortization					122	68		79
Gross margin - total	136		363			(63	)	Gross margin excluding depreciation
Expenses (income) ²	257		(428	)		n/m		and amortization - manufactured					247	371		(33	)
EBIT	(121	)	791			n/m
Depreciation and amortization	138		82			68
EBITDA	17		873			(98	)
Adjustments ²	233		(450	)		n/m
Adjusted EBITDA	250		423			(41	)
1 Includes other phosphate and purchased products and comprises net sales of $140 million (2022 - $148 million) less cost of goods sold of $146 million (2022 - $150 million).
2 Includes impairment of assets of $233 million (2022 - reversal of impairment of assets of $(450) million). See Notes 2 and 3 to the interim financial statements.

Phosphate adjusted EBITDA decreased in the second quarter and first half of 2023 due to lower net realized prices for fertilizer products. We recognized a $233 million non-cash impairment of our White Springs property, plant and equipment during the second quarter of 2023, while we had an impairment reversal for our Aurora property, plant and equipment of $450 million in the same period in 2022. This impairment and reversal of impairment reflects the volatility of forecasted phosphate margins. We have completed our planned turnarounds, continue to focus on reliability initiatives, and expect operating rates to increase through the remainder of 2023.
Sales volumes increased in the second quarter of 2023 due to increased demand for dry phosphate fertilizer. First half sales volumes were lower than the previous year primarily due to lower production impacting our industrial and feed sales.
Net realized selling price decreased in the second quarter and first half of 2023 due to lower fertilizer net realized selling prices, partially offset by increases to industrial net realized selling prices, which reflects the typical lag in industrial price realizations relative to spot fertilizer prices.
Cost of goods sold per tonne increased in the second quarter and first half due to higher depreciation from impairment reversals in 2022 and lower production, partially offset by lower ammonia and sulfur costs.

Corporate and Others

(millions of US dollars, except as otherwise	Three Months Ended June 30					Six Months Ended June 30
noted)	2023		2022		% Change	2023		2022		% Change
Selling expense recovery	(2	)	(2	)	?	(4	)	(4	)	?
General and administrative expenses	88		77		14	172		147		17
Share-based compensation (recovery) expense	(64	)	(52	)	23	(49	)	83		n/m
Other expenses	151		48		215	70		101		(31	)
EBIT	(173	)	(71	)	144	(189	)	(327	)	(42	)
Depreciation and amortization	20		20		?	37		36		3
EBITDA	(153	)	(51	)	200	(152	)	(291	)	(48	)
Adjustments ¹	93		(7	)	n/m	79		167		(53	)
Adjusted EBITDA	(60	)	(58	)	3	(73	)	(124	)	(41	)
1 See Note 2 to the interim financial statements. Includes loss on Blue Chip Swaps of $92 million for the three and six months ended June 30 (2022 - nil).

Share-based compensation recovery was higher in the second quarter of 2023 compared to the same period in 2022 due to a larger decrease in the fair value of our share-based awards. The fair value takes into consideration several factors such as our share price movement, our performance relative to our peer group and return on our invested capital. We recorded a recovery in the first half of 2023 due to a decrease in the fair value of these awards compared to an expense for the comparative period in 2022 reflecting the increase in fair value.
Other expenses were higher in the second quarter compared to the same period in 2022 due to a $92 million loss on Blue Chip Swaps incurred through trade transactions to remit cash from Argentina. The loss is a result of the significant divergence between the Blue Chip Swap market exchange rate and the official Argentinian Central Bank rate. The first half of 2023 also included an $80 million gain from amendments to our other post-retirement benefit plans, which resulted from design plan changes.

Eliminations

Eliminations are not part of the Corporate and Others segment. The recovery of gross margin between operating segments of $131 million for the second quarter of 2023 was lower than the recovery of $176 million in the same period of 2022 as crop input selling prices and margins related to our intersegment sales decreased. For the first half of 2023, there was a recovery of $104 million compared to an elimination of $(24) million in the same period in 2022. This variance is due to the timing of release of intersegment inventories held by our Retail segment.

Finance Costs, Income Taxes and Other Comprehensive Income

(millions of US dollars, except as otherwise	Three Months Ended June 30					Six Months Ended June 30
noted)	2023	2022		% Change		2023	2022		% Change
Finance costs	204	130		57		374	239		56
Income tax expense	476	1,214		(61	)	669	1,719		(61	)
Other comprehensive income (loss)	68	(242	)	n/m		70	(66	)	n/m

Finance costs were higher in the second quarter of 2023 compared to the same period in 2022 mainly due to higher interest on short-term debt from increased commercial paper interest rates and a higher average balance in our short-term and long-term debt.
Income tax expense was lower in the second quarter and first half of 2023 as a result of lower earnings compared to the same periods in 2022. The effective tax rates for the second quarter and first half of 2023 were 51 percent and 40 percent compared to 25 percent for both comparative periods in 2022. The increase in effective tax rates was a result of the impacts of the impairments, the loss on Blue Chip Swaps and a change in recognition of deferred income taxes in 2023.
Other comprehensive income was higher primarily driven by changes in the currency translation of our foreign operations. In the second quarter and first half of 2023, we had gains on foreign currency translation of our Retail foreign operations mainly due to the appreciation of the Brazilian and Canadian currencies relative to the US dollar. For the comparative periods in 2022, we had losses mainly due to the depreciation of the Australian and Canadian currencies relative to the US dollar.

Liquidity and Capital Resources

Sources and Uses of Liquidity

We continued to manage our capital in accordance with our capital allocation strategy. We believe that our internally generated cash flow, supplemented by available borrowings under new or existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures, planned growth and development activities, and other cash requirements for the foreseeable future. Refer to the "Capital Structure and Management" section for details on our existing long-term debt and credit facilities.

Sources and Uses of Cash

(millions of US dollars, except as otherwise	Three Months Ended June 30						Six Months Ended June 30
noted)	2023		2022		% Change		2023		2022		% Change
Cash provided by operating activities	2,243		2,558		(12	)	1,385		2,496		(45	)
Cash used in investing activities	(858	)	(517	)	66		(1,552	)	(974	)	59
Cash (used in) provided by financing activities	(2,124	)	(1,878	)	13		5		(1,290	)	n/m
Effect of exchange rate changes on cash and cash equivalents	3		(29	)	n/m		(2	)	(20	)	(90	)
(Decrease) increase in cash and cash equivalents	(736	)	134		n/m		(164	)	212		n/m

Cash provided by operating activities	Cash provided by operating activities in the second quarter and first half of 2023 was lower compared to the same periods in 2022 primarily due to lower net realized selling prices across all segments compared to historically strong benchmark prices in 2022.
Cash used in investing activities	Cash used in investing activities in the second quarter and first half of 2023 was higher compared to the same periods in 2022 mainly due to increased maintenance and turnaround activities as we continue to prioritize sustaining our assets to maintain safe and reliable operations. We also had higher investing capital expenditures to expand current operations and support operational efficiencies.
Cash (used in) provided by financing activities	Cash used in financing activities in the second quarter of 2023 was higher compared to the same period in 2022 due to the repayment of the $500 million notes at maturity and higher short-term debt repayments, partially offset by lower share repurchases. Cash provided by financing activities in the first half of 2023 was due to the issuance of $1,500 million of notes in the first quarter of 2023 and proceeds from short-term debt which were partially offset by the repayment of the $500 million notes at maturity and share repurchases. Cash used in financing activities in the first half of 2022 was primarily due to significant share repurchases slightly offset by proceeds from short-term debt.

Financial Condition Review

The following balance sheet categories contain variances that are considered material:

	As at
(millions of US dollars, except as otherwise noted)	June 30, 2023	December 31, 2022	$ Change		% Change
Assets
Receivables	8,595	6,194	2,401		39
Inventories	6,062	7,632	(1,570	)	(21	)
Prepaid expenses and other current assets	602	1,615	(1,013	)	(63	)
Goodwill	12,077	12,368	(291	)	(2	)
Liabilities and Equity
Short-term debt	2,922	2,142	780		36
Current portion of long-term debt	44	542	(498	)	(92	)
Payables and accrued charges	9,470	11,291	(1,821	)	(16	)
Long-term debt	9,498	8,040	1,458		18
Share capital	13,835	14,172	(337	)	(2	)

Receivables increased primarily due to the seasonality of Retail sales and a strategic extension of credit terms to our Retail customers. This was partially offset by lower receivables in our Potash and Nitrogen segments as selling prices decreased from the historically strong period in 2022.
Inventories decreased due to seasonal Retail sales. Generally, we build up our inventory levels in North America at year-end in preparation for the next year's upcoming planting and application seasons.
Prepaid expenses and other current assets decreased due to the seasonal drawdown of prepaid inventories (primarily seed and crop protection products) during the spring planting and application seasons in North America.
Goodwill decreased due to the goodwill impairment related to our Retail - South America group of cash generating units ("CGUs"), partially offset by an increase in goodwill recognized from recent acquisitions.
Short-term debt increased due to additional commercial paper issuances for our seasonal working capital requirements.
Current portion of long-term debt decreased due to the repayment of $500 million of notes at maturity in the second quarter of 2023.
Payables and accrued charges decreased primarily as a result of lower customer prepayments in North America as Retail customers took delivery of prepaid sales. This also decreased from income tax payments made in the first half of 2023 related to the 2022 tax balance.
Long-term debt increased due to the issuance of $1,500 million of notes in the first quarter of 2023.
Share capital decreased primarily as a result of shares repurchased in first half of 2023 under our normal course issuer bid programs.

Capital Structure and Management

Principal Debt Instruments

As part of the normal course of business, we closely monitor our liquidity position. We use a combination of cash generated from operations and short-term and long-term debt to finance our operations. We were in compliance with our debt covenants and did not have any changes to our credit ratings in the six months ended June 30, 2023.

	As at June 30, 2023
(millions of US dollars, except as			Outstanding and Committed
otherwise noted)	Rate of Interest (%)	Total Facility Limit	Short-Term Debt	Long-Term Debt
Credit facilities
Unsecured revolving term credit facility	n/a	4,500	?	?
Unsecured revolving term credit facility	n/a	2,000	?	?
Uncommitted revolving demand facility	n/a	1,000	?	?
Other credit facilities		1,310
South America ¹	1.2 - 23.1		588	151
Australia	5.1		100	?
Other	4.1		89	3
Commercial paper	5.4 - 5.8		2,038	?
Other short-term and long-term debt	n/a		107	2
Total			2,922	156
1 Our credit facilities are either denominated in local currency or US dollars. The range of interest rates for South America excludes our local currency denominated Argentina facility with an interest rate of 92.4 percent and a minimal outstanding balance as at June 30, 2023.

The amount available under the commercial paper program is limited to the undrawn availability of backup funds under the $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities.

Our long-term debt consists primarily of notes and debentures. See the "Capital Structure and Management" section of our 2022 Annual Report for information on balances, rates and maturities for our notes and debentures. During the first six months of 2023, we issued notes of $1,500 million and repaid the $500 million 1.900 percent notes upon maturity on May 13, 2023. See Note 8 to the interim financial statements.

Outstanding Share Data

	As at August 1, 2023
Common shares	494,508,425
Options to purchase common shares	3,327,351

For more information on our capital structure and management, see Note 24 to our 2022 annual consolidated financial statements.

Quarterly Results

(millions of US dollars, except as otherwise noted)	Q2 2023	Q1 2023		Q4 2022		Q3 2022		Q2 2022		Q1 2022		Q4 2021		Q3 2021
Sales	11,654		6,107		7,533		8,188		14,506		7,657		7,267		6,024
Net earnings	448		576		1,118		1,583		3,601		1,385		1,207		726
Net earnings attributable to equity holders of Nutrien	440		571		1,112		1,577		3,593		1,378		1,201		717
Net earnings per share attributable to equity holders of Nutrien
Basic	0.89		1.14		2.15		2.95		6.53		2.49		2.11		1.26
Diluted	0.89		1.14		2.15		2.94		6.51		2.49		2.11		1.25

Seasonality in our business results from increased demand for products during the planting season. Crop input sales are generally higher in the spring and fall application seasons. The results of this seasonality have a corresponding effect on receivables from customers and rebates receivables, inventories, prepaid expenses and other current assets, and trade payables. Our short-term debt also fluctuates during the year to meet working capital requirements. Crop input inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are typically concentrated in December and January and inventory prepayments paid to our suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

Our earnings are significantly affected by fertilizer benchmark prices, which have been volatile over the last two years and are affected by demand-supply conditions, grower affordability and weather.

In the second quarter of 2023, we recorded non-cash impairment of assets totaling to $698 million. This is comprised of an impairment of our Phosphate White Springs property, plant and equipment of $233 million and an impairment of our South American Retail assets of $465 million primarily related to goodwill. In the second and third quarters of 2022, earnings were impacted by $450 million and $330 million non-cash impairment reversals at Aurora and White Springs CGUs, respectively, of property, plant and equipment in the Phosphate segment. The impairments and reversal of impairments in our Phosphate segment reflect the volatility of forecasted phosphate margins while the impairment related to the Retail South America group of CGUs is mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates. In the fourth quarter of 2021, earnings were impacted by a $142 million loss resulting from the early extinguishment of long-term debt.

Critical Accounting Estimates

Our significant accounting policies are disclosed in our 2022 Annual Report. We have discussed the development, selection and application of our key accounting policies, and the critical accounting estimates and assumptions they involve, with the Audit Committee of the Board. Our critical accounting estimates are discussed on page 65 of our 2022 Annual Report. Other than the critical accounting estimates discussed below, there were no material changes in the three or six months ended June 30, 2023 to our critical accounting estimates.

Impairment of Assets

Long-Lived Asset Impairment and Reversals

During the three and six months ended June 30, 2023, we identified an impairment trigger for our Phosphate CGUs, White Springs and Aurora, primarily as a result of the decrease in our forecasted phosphate margins. As a result of the impairment analysis, we recorded an impairment of property, plant and equipment amounting to $233 million at our White Springs CGU as the recoverable amount was less than its carrying value. The White Springs CGU has a shorter expected mine life and is therefore more sensitive to changes in short and medium-term forecasted phosphate margins. We determined there was no impairment for our Aurora CGU. Refer to Note 3 to the interim financial statements for additional information.

The following table highlights sensitivities to the recoverable amounts which could result in additional impairment losses or reversals of the previously recorded losses (relating to the White Springs CGU). The sensitivities have been calculated independently of changes in other key variables. Dollar amounts are in millions, except as otherwise noted.

			Change to Recoverable Amount ($)
Key Assumptions as at June 30, 2023	Change in Assumption		White Springs		Aurora
Forecasted EBITDA over forecast period ($)	+ / -	5.0 percent	+ / -	40	+ / -	220
Pre-tax discount rate (%)	+ / -	1.0 percent	- / +	20	n/a	n/a
Post-tax discount rate (%)	+ / -	1.0 percent	n/a	n/a	- / +	190
Long-term growth rate (%)	+ / -	1.0 percent	n/a	n/a	+ / -	110

Goodwill and Intangible Assets Impairment

Recent acquisitions in Brazil resulted in goodwill being recognized for our Retail - South America group of CGUs. Goodwill is more susceptible to impairment risk if business operating results or economic conditions deteriorate and we anticipate not meeting our forecasts. During the three and six months ended June 30, 2023, we revised our forecasted EBITDA for the Retail - South America group of CGUs which triggered an impairment analysis. Due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates, we have lowered our product margin expectations and deferred certain of our planned strategic investments. As a result, this reduced our forecasted earnings and growth. As at June 30, 2023, the Retail - South America group of CGUs recoverable amount was lower than its carrying amount. As a result, we fully impaired goodwill of $422 million and recorded a $43 million impairment of intangible assets for a total of $465 million for the Retail - South America group of CGUs. Refer to Note 3 to the interim financial statements for additional information.

The following table highlights sensitivities to the recoverable amount which could have resulted in additional impairment against the carrying amount of intangible assets and property, plant and equipment. The sensitivities have been calculated independently of changes in other key variables. Dollar amounts are in millions, except as otherwise noted.

			Decrease to
Key Assumptions	Change in Key Assumption		Recoverable Amount ($)
Terminal growth rate (%)	-	1.0 percent	50
Forecasted EBITDA over forecast period ($)	-	5.0 percent	100
Discount rate (%)	+	1.0 percent	120

Controls and Procedures

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings. Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

There has been no change in our internal control over financial reporting during the three months ended June 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Forward-Looking Statements

Certain statements and other information included in this document, including within the "Market Outlook and Guidance" section, 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 business strategies, plans, prospects and opportunities; Nutrien's revised 2023 full-year guidance, including expectations regarding our adjusted net earnings per share and adjusted EBITDA (consolidated and by segment), Potash sales tonnes, Nitrogen sales tonnes, depreciation and amortization and effective tax rate on adjusted earnings; our expectations for annual potash capability and ability to adjust operations according to market demand; our projections for cash from operations; expectations regarding our growth and capital allocation intentions and strategies, including our forecasts relating to goodwill impairment; expectations and forecasts relating to our Aurora and White Springs CGUs and the reversals and impairments (as applicable) associated therewith; our advancement of strategic growth initiatives; capital spending expectations for 2023 and beyond, including expectations for lower capital expenditures and reduced expenses; expectations regarding Retail inventory levels in North America; expectations regarding performance of our operating segments in 2023, including our plans to ramp up production and the anticipated effects of the strike at the Port of Vancouver; our operating segment market outlooks and our expectations for market conditions and fundamentals in 2023 and beyond, and the anticipated supply and demand for our products and services, expected market and industry conditions with respect to crop nutrient application rates, planted acres, grower crop investment, crop mix, production volumes and expenses, shipments, consumption, prices, operating rates and the impact of seasonality, including drought conditions, import and export volumes, economic sanctions, operating rates, inventories, exports, crop development, natural gas curtailments and the war between Ukraine and Russia; the negotiation of sales contracts; timing and impacts of plant turnarounds; acquisitions and divestitures and the anticipated benefits thereof; and expectations in connection with our ability to deliver long-term returns to shareholders. 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, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. 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 divestitures, and that we will be able to implement our standards, controls, procedures and policies in respect of any acquired businesses and to realize the expected synergies on the anticipated timeline or at all; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, expenses, margins, demand, supply, product availability, shipments, consumption, weather conditions, supplier agreements, availability, inventory levels, exports, crop development and cost of labor and interest, exchange and effective tax rates; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2023 and in the future; our expectations for fertilizer prices to stabilize near mid-cycle values in 2023; assumptions related to our Retail South America group of CGUs goodwill and intangible asset impairment; assumptions related to the calculation of recoverable amount of our Aurora and White Springs CGUs, including internal sales and input price forecasts, discount rate, long-term growth rate and end of expected mine life; assumptions with respect to our intention to complete share repurchases under our normal course issuer bid programs, including the funding of such share repurchases, existing and future market conditions, including with respect to the price of our common shares, and compliance with respect to applicable limitations under securities laws and regulations and stock exchange policies; expectations relating to the effects of the strike at the Port of Vancouver; our expectations regarding the impacts, direct and indirect, of the war between Ukraine and Russia on, among other things, global supply and demand, including for crop nutrients, energy and commodity prices, global interest rates, supply chains and the global macroeconomic environment, including inflation; 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; our ability to successfully negotiate sales and other contracts; and our ability to successfully implement new initiatives and programs.

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; seasonality; 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; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; the risk that rising interest rates and/or deteriorated business operating results may result in the further impairment of assets or goodwill attributed to certain of our cash generating units; 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; the war between Ukraine and Russia and its potential impact on, among other things, global market conditions and supply and demand, including for crop nutrients, energy and commodity prices, interest rates, supply chains and the global economy generally; our ability to execute on our strategies related to environmental, social and governance matters, and achieve related expectations, targets and commitments; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the SEC in the United States.

The purpose of our 2023 adjusted net earnings per share and adjusted EBITDA (consolidated and by segment), capital expenditures, operating expenses, cash provided by operations, depreciation and amortization and effective tax rate on adjusted earnings guidance ranges are to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

The forward-looking statements in this document are made as of the date hereof and 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 Definitions

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 & Definitions" section of our 2022 Annual Report. 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 amounts are stated in millions of US dollars, unless otherwise noted.

About Nutrien

Nutrien is the world's largest provider of crop inputs and services, helping to safely and sustainably feed a growing world. We operate a world-class network of production, distribution and retail facilities that positions us to efficiently serve the needs of growers. We focus on creating long-term value for all stakeholders by advancing our key environmental, social and governance priorities.

More information about Nutrien can be found 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.

Nutrien will host a Conference Call on Thursday, August 3, 2023 at 10:00 a.m. Eastern Time.

Telephone Conference dial-in numbers:

From Canada and the US 1-888-886-7786
International 1-416-764-8658
No access code required. Please dial in 15 minutes prior to ensure you are placed on the call in a timely manner.

Live Audio Webcast: Visit https://www.nutrien.com/investors/events/2023-q2-earnings-conference-call

Appendix A - Selected Additional Financial Data

Selected Retail Measures	Three Months Ended June 30		Six Months Ended June 30
	2023	2022	2023	2022
Proprietary products gross margin (millions of US dollars)
Crop nutrients	214	197	268	241
Crop protection products	253	317	327	428
Seed	113	126	143	152
Merchandise	3	3	6	6
All products	583	643	744	827
Proprietary products margin as a percentage of product line margin (%)
Crop nutrients	34	22	35	20
Crop protection products	38	39	37	39
Seed	42	46	42	44
Merchandise	7	6	7	6
All products	30	28	29	26
Crop nutrients sales volumes (tonnes - thousands)
North America	4,599	3,978	5,794	5,220
International	1,133	1,017	1,977	1,950
Total	5,732	4,995	7,771	7,170
Crop nutrients selling price per tonne
North America	735	940	736	923
International	536	795	535	676
Total	695	911	685	856
Crop nutrients gross margin per tonne
North America	131	202	123	198
International	26	105	29	86
Total	110	182	99	168

Financial performance measures	2023	2022
Retail adjusted EBITDA margin (%) ^{1, 2}	8	12
Retail adjusted EBITDA per US selling location (thousands of US dollars) ^{1, 2, 3}	1,516	1,897
Retail adjusted average working capital to sales (%) ^{1, 4}	20	15
Retail adjusted average working capital to sales excluding Nutrien Financial (%) ^{1, 4}	3	1
Nutrien Financial adjusted net interest margin (%) ^{1, 4}	6.6	7.0
Retail cash operating coverage ratio (%) ^{1, 4}	64	54
1 Rolling four quarters ended June 30, 2023 and 2022.
2 These are supplementary financial measures. See the "Other Financial Measures" section.
3 Excluding acquisitions.
4 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

Nutrien Financial	As at June 30, 2023							As at December 31, 2022
(millions of US dollars)	Current	<31 Days Past Due	31-90 Days Past Due	>90 Days Past Due	Gross Receivables	Allowance¹	Net Receivables	Net Receivables
North America	3,648	194	54	109	4,005	(43)	3,962	2,007
International	644	53	20	47	764	(10)	754	662
Nutrien Financial receivables	4,292	247	74	156	4,769	(53)	4,716	2,669
1 Bad debt expense on the above receivables for the six months ended June 30, 2023 was $30 million (2022 - $8 million) in the Retail segment.

Selected Nitrogen Measures	Three Months Ended June 30		Six Months Ended June 30
	2023	2022	2023	2022
Sales volumes (tonnes - thousands)
Fertilizer ¹	1,866	1,537	3,114	2,690
Industrial and feed	1,079	1,142	2,188	2,314
Net sales (millions of US dollars)
Fertilizer ¹	826	1,197	1,507	2,023
Industrial and feed	289	760	787	1,448
Net selling price per tonne
Fertilizer ¹	443	777	484	751
Industrial and feed	267	666	360	626
1 Certain immaterial 2022 figures have been reclassified.

Production Measures	Three Months Ended June 30		Six Months Ended June 30
	2023	2022	2023	2022
Potash production (Product tonnes - thousands)	3,237	3,621	6,325	7,324
Potash shutdown weeks ¹	1	5	5	5
Ammonia production - total ²	1,249	1,473	2,680	2,876
Ammonia production - adjusted ^{2, 3}	931	1,048	1,968	2,006
Ammonia operating rate (%) ³	85	96	90	92
P₂O₅ production (P₂O₅ tonnes - thousands)	331	350	672	728
P₂O₅ operating rate (%)	78	82	80	86
1 Represents weeks of full production shutdown, including inventory adjustments and unplanned events, excluding the impact of any periods of reduced operating rates, planned routine annual maintenance shutdowns and announced workforce reductions.
2 All figures are provided on a gross production basis in thousands of product tonnes.
3 Excludes Trinidad and Joffre.

Appendix B - Non-IFRS Financial Measures

We use both IFRS measures and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by the Company that (a) depict historical or expected future financial performance, financial position or cash flow of the Company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the Company, (c) are not disclosed in the financial statements of the Company and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by the Company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the Company.

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios 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 and non-IFRS ratios 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 and non-IFRS ratios, their compositions, and why management uses each measure. It also includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-IFRS financial measures and non-IFRS ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations.

Adjusted EBITDA (Consolidated)

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

Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses, gain or loss on disposal of certain businesses and investments, asset retirement obligations ("ARO") and accrued environmental costs ("ERL") related to our non-operating sites, and loss on remitting cash from certain foreign jurisdictions (e.g. Blue Chip Swaps). In 2023, we amended our calculation of adjusted EBITDA to adjust for the asset retirement obligations and accrued environmental costs related to our non-operating sites and the loss on remitting cash from certain foreign jurisdictions. We do not consider these to be part of our day-to-day operations. There were no similar income and expense in the comparative periods.

Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations, and as a component of employee remuneration calculations.

	Three Months Ended June 30		Six Months Ended June 30
(millions of US dollars)	2023	2022	2023	2022
Net earnings	448	3,601	1,024	4,986
Finance costs	204	130	374	239
Income tax expense	476	1,214	669	1,719
Depreciation and amortization	556	505	1,052	966
EBITDA ¹	1,684	5,450	3,119	7,910
Share-based compensation (recovery) expense	(64)	(52)	(49)	83
Foreign exchange loss, net of related derivatives	52	31	18	56
Integration and restructuring related costs	10	11	15	20
Impairment (reversal of impairment) of assets	698	(450)	698	(450)
COVID-19 related expenses ²	?	3	?	8
Gain on disposal of investment	?	?	?	(19)
ARO/ERL expense for non-operating sites ³	6	?	6	?
Loss on Blue Chip Swaps	92	?	92	?
Adjusted EBITDA	2,478	4,993	3,899	7,608
1 EBITDA is calculated as net earnings before finance costs, income taxes, and depreciation and amortization.
2 COVID-19 related expenses primarily consist of increased cleaning and sanitization costs, the purchase of personal protective equipment, discretionary supplemental employee costs, and costs related to construction delays from access limitations and other government restrictions.
3 ARO/ERL refers to asset retirement obligations and accrued environmental costs.

Adjusted Net Earnings and Adjusted Net Earnings Per Share

Most directly comparable IFRS financial measure: Net earnings (loss) and net earnings (loss) per share.

Definition: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, gain or loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting, asset retirement obligations and accrued environmental costs related to our non-operating sites, loss on remitting cash from certain foreign jurisdictions (e.g. Blue Chip Swaps) and change in recognition of tax losses and deductible temporary differences related to impairments. In 2023, we amended our calculation of adjusted net earnings and adjusted net earnings per share to adjust for the asset retirement obligations and accrued environmental costs related to our non-operating sites the loss on remitting cash from certain foreign jurisdictions and the change in recognition of Retail - South America tax losses and deductible temporary differences. We do not consider these to be part of our day-to-day operations. There were no similar income and expense in the comparative periods. We generally apply the annual forecasted effective tax rate to our adjustments during the year and, at year-end, we apply the actual effective tax rate. If the effective tax rate is significantly different from our forecasted effective tax rate due to adjustments or discrete tax impacts, we apply a tax rate that excludes those items. For material adjustments, we apply a tax rate specific to the adjustment.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is used as a component of employee remuneration calculations.

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
					Per						Per
(millions of US dollars, except as otherwise	Increases				Diluted		Increases				Diluted
noted)	(Decreases)		Post-Tax		Share		(Decreases)		Post-Tax		Share
Net earnings attributable to equity holders of Nutrien			440		0.89				1,011		2.03
Adjustments:
Share-based compensation recovery	(64	)	(49	)	(0.11	)	(49	)	(37	)	(0.08	)
Foreign exchange loss, net of related derivatives	52		40		0.08		18		14		0.02
Integration and restructuring related costs	10		8		0.02		15		11		0.02
Impairment of assets	698		653		1.32		698		653		1.32
ARO/ERL expense for non-operating sites ¹	6		5		0.01		6		5		0.01
Loss on Blue Chip Swaps	92		92		0.19		92		92		0.18
Change in recognition of deferred tax assets	66		66		0.13		66		66		0.13
Adjusted net earnings			1,255		2.53				1,815		3.63
1 ARO/ERL refers to asset retirement obligations and accrued environmental costs.

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
					Per						Per
(millions of US dollars, except as otherwise	Increases				Diluted		Increases				Diluted
noted)	(Decreases)		Post-Tax		Share		(Decreases)		Post-Tax		Share
Net earnings attributable to equity holders of Nutrien			3,593		6.51				4,971		8.99
Adjustments:
Share-based compensation (recovery) expense	(52	)	(39	)	(0.07	)	83		62		0.11
Foreign exchange loss, net of related derivatives	31		23		0.04		56		42		0.07
Integration and restructuring related costs	11		8		0.01		20		15		0.02
Reversal of impairment of assets	(450	)	(354	)	(0.64	)	(450	)	(354	)	(0.64	)
COVID-19 related expenses	3		2		?		8		6		0.01
Gain on disposal of investment	?		?		?		(19	)	(14	)	(0.03	)
Adjusted net earnings			3,233		5.85				4,728		8.53

Adjusted EBITDA (Consolidated) and Adjusted Net Earnings Per Share Guidance

Adjusted EBITDA and adjusted net earnings per share guidance are forward-looking non-IFRS financial measures. 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 because a meaningful or accurate calculation of reconciling items and the information is not available without unreasonable effort due to unknown variables, including the timing and amount of certain reconciling items, 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. The probable significance of such unavailable information, which could be material to future results, cannot be addressed. Guidance for adjusted EBITDA and adjusted net earnings per share excludes certain items such as, but not limited to, the impacts of share-based compensation, certain foreign exchange gain/loss (net of related derivatives), integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, gain or loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting, asset retirement obligations and accrued environmental costs related to our non-operating sites, loss on remitting cash from certain foreign jurisdictions (e.g. Blue Chip Swaps) and the change in recognition of Retail - South America tax losses and deductible temporary differences.

Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured

Most directly comparable IFRS financial measure: Gross margin.

Definition: Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations are provided in the "Segment Results" section.

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.

Potash Controllable Cash Cost of Product Manufactured ("COPM") Per Tonne

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

Definition: Total Potash COGS excluding depreciation and amortization expense included in COPM, royalties, natural gas costs and carbon taxes, change in inventory, and other adjustments, divided by potash production tonnes.

Why we use the measure and why it is useful to investors: To assess operational performance. Potash controllable cash COPM excludes the effects of production from other periods and the impacts of our long-term investment decisions. Potash controllable cash COPM also excludes royalties and natural gas costs and carbon taxes, which management does not consider controllable, as they are primarily driven by regulatory and market conditions.

	Three Months Ended June 30				Six Months Ended June 30
(millions of US dollars, except as otherwise noted)	2023		2022		2023		2022
Total COGS - Potash	353		399		658		704
Change in inventory	(14	)	(5	)	26		72
Other adjustments ¹	(9	)	(9	)	(17	)	(24	)
COPM	330		385		667		752
Depreciation and amortization in COPM	(101	)	(114	)	(201	)	(233	)
Royalties in COPM	(26	)	(63	)	(57	)	(108	)
Natural gas costs and carbon taxes in COPM	(9	)	(19	)	(25	)	(36	)
Controllable cash COPM	194		189		384		375
Production tonnes (tonnes - thousands)	3,237		3,621		6,325		7,324
Potash controllable cash COPM per tonne	60		52		61		51
1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.

Ammonia Controllable Cash COPM Per Tonne

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

Definition: Total Nitrogen COGS 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 June 30				Six Months Ended June 30
(millions of US dollars, except as otherwise noted)	2023		2022		2023		2022
Total Manufactured COGS - Nitrogen ¹	697		911		1,345		1,583
Total Other COGS - Nitrogen ¹	120		260		243		469
Total COGS - Nitrogen	817		1,171		1,588		2,052
Depreciation and amortization in COGS	(139	)	(115	)	(247	)	(217	)
Cash COGS for products other than ammonia	(513	)	(748	)	(984	)	(1,272	)
Ammonia
Total cash COGS before other adjustments	165		308		357		563
Other adjustments ²	(66	)	(78	)	(134	)	(114	)
Total cash COPM	99		230		223		449
Natural gas and steam costs in COPM	(73	)	(195	)	(158	)	(376	)
Controllable cash COPM	26		35		65		73
Production tonnes (net tonnes ³ - thousands)	474		606		1,102		1,280
Ammonia controllable cash COPM per tonne	55		58		59		57
1 Certain immaterial 2022 figures have been reclassified.
2 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.
3 Ammonia tonnes available for sale, as not upgraded to other nitrogen products.

Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial

Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the sales and working capital of certain acquisitions during the first year following the acquisition. We also look at this metric excluding Nutrien Financial revenue and working capital.

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. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio.

	Rolling four quarters ended June 30, 2023
(millions of US dollars, except as otherwise noted)	Q3 2022		Q4 2022		Q1 2023		Q2 2023		Average/Total
Current assets	11,262		11,668		13,000		11,983
Current liabilities	(5,889	)	(8,708	)	(8,980	)	(8,246	)
Working capital	5,373		2,960		4,020		3,737		4,023
Working capital from certain recent acquisitions	?		?		?		?
Adjusted working capital	5,373		2,960		4,020		3,737		4,023
Nutrien Financial working capital	(3,898	)	(2,669	)	(2,283	)	(4,716	)
Adjusted working capital excluding Nutrien Financial	1,475		291		1,737		(979	)	631

Sales	3,980		4,087		3,422		9,128
Sales from certain recent acquisitions	?		?		?		?
Adjusted sales	3,980		4,087		3,422		9,128		20,617
Nutrien Financial revenue	(65	)	(62	)	(57	)	(122	)
Adjusted sales excluding Nutrien Financial	3,915		4,025		3,365		9,006		20,311

Adjusted average working capital to sales (%)									20
Adjusted average working capital to sales excluding Nutrien Financial (%)									3

	Rolling four quarters ended June 30, 2022
(millions of US dollars, except as otherwise noted)	Q3 2021		Q4 2021		Q1 2022		Q2 2022		Average/Total
Current assets	8,945		9,924		12,392		12,487
Current liabilities	(5,062	)	(7,828	)	(9,223	)	(9,177	)
Working capital	3,883		2,096		3,169		3,310		3,115
Working capital from certain recent acquisitions	?		?		?		?
Adjusted working capital	3,883		2,096		3,169		3,310		3,115
Nutrien Financial working capital	(2,820	)	(2,150	)	(2,274	)	(4,404	)
Adjusted working capital excluding Nutrien Financial	1,063		(54	)	895		(1,094	)	203

Sales	3,347		3,878		3,861		9,422
Sales from certain recent acquisitions	?		?		?		?
Adjusted sales	3,347		3,878		3,861		9,422		20,508
Nutrien Financial revenue	(54	)	(51	)	(49	)	(91	)
Adjusted sales excluding Nutrien Financial	3,293		3,827		3,812		9,331		20,263

Adjusted average working capital to sales (%)									15
Adjusted average working capital to sales excluding Nutrien Financial (%)									1

Nutrien Financial Adjusted Net Interest Margin

Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial net receivables outstanding for the last four rolling quarters.

Why we use the measure and why it is useful to investors: Used by credit rating agencies and other users to evaluate the financial performance of Nutrien Financial.

	Rolling four quarters ended June 30, 2023
(millions of US dollars, except as otherwise noted)	Q3 2022		Q4 2022		Q1 2023		Q2 2023		Total/Average
Nutrien Financial revenue	65		62		57		122
Deemed interest expense ¹	(12	)	(11	)	(20	)	(39	)
Net interest	53		51		37		83		224

Average Nutrien Financial net receivables	3,898		2,669		2,283		4,716		3,392
Nutrien Financial adjusted net interest margin (%)									6.6

	Rolling four quarters ended June 30, 2022
(millions of US dollars, except as otherwise noted)	Q3 2021		Q4 2021		Q1 2022		Q2 2022		Total/Average
Nutrien Financial revenue	54		51		49		91
Deemed interest expense ¹	(10	)	(12	)	(6	)	(12	)
Net interest	44		39		43		79		205

Average Nutrien Financial net receivables	2,820		2,150		2,274		4,404		2,912
Nutrien Financial adjusted net interest margin (%)									7.0
1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.

Retail Cash Operating Coverage Ratio

Definition: Retail selling, general and administrative, and other expenses (income), 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 June 30, 2023
(millions of US dollars, except as otherwise noted)	Q3 2022		Q4 2022		Q1 2023		Q2 2023		Total
Selling expenses	821		836		765		971		3,393
General and administrative expenses	50		51		50		55		206
Other expenses	19		1		15		29		64
Operating expenses	890		888		830		1,055		3,663
Depreciation and amortization in operating expenses	(204	)	(198	)	(179	)	(185	)	(766	)
Operating expenses excluding depreciation and amortization	686		690		651		870		2,897

Gross margin	917		1,077		615		1,931		4,540
Depreciation and amortization in cost of goods sold	2		4		2		3		11
Gross margin excluding depreciation and amortization	919		1,081		617		1,934		4,551
Cash operating coverage ratio (%)									64

	Rolling four quarters ended June 30, 2022
(millions of US dollars, except as otherwise noted)	Q3 2021		Q4 2021		Q1 2022		Q2 2022		Total
Selling expenses	746		848		722		1,013		3,329
General and administrative expenses	45		43		45		54		187
Other expenses (income)	17		20		(12	)	21		46
Operating expenses	808		911		755		1,088		3,562
Depreciation and amortization in operating expenses	(180	)	(173	)	(167	)	(171	)	(691	)
Operating expenses excluding depreciation and amortization	628		738		588		917		2,871

Gross margin	917		1,173		845		2,340		5,275
Depreciation and amortization in cost of goods sold	2		5		2		4		13
Gross margin excluding depreciation and amortization	919		1,178		847		2,344		5,288
Cash operating coverage ratio (%)									54

Appendix C - Other Financial Measures

Supplementary Financial Measures

Supplementary financial measures are financial measures disclosed by the Company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of the Company, (b) are not disclosed in the financial statements of the Company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.

The following section provides an explanation of the composition of those supplementary financial measures if not previously provided.

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

Retail adjusted EBITDA per US selling location: Calculated as total Retail US adjusted EBITDA for the last four rolling quarters, representing the organic EBITDA component, which excludes 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 in those quarters.

Cash used for dividends and share repurchases (shareholder returns): Calculated as dividends paid to Nutrien's shareholders plus repurchase of common shares as reflected in the condensed consolidated statements of cash flows. This measure is useful as it represents return of capital to shareholders.

Condensed Consolidated Financial Statements

Unaudited in millions of US dollars except as otherwise noted

Condensed Consolidated Statements of Earnings

		Three Months Ended				Six Months Ended
		June 30				June 30
	Note	2023		2022		2023		2022
SALES	2	11,654		14,506		17,761		22,163
Freight, transportation and distribution		252		221		451		424
Cost of goods sold		8,236		8,286		12,231		12,483
GROSS MARGIN		3,166		5,999		5,079		9,256
Selling expenses		979		1,017		1,749		1,744
General and administrative expenses		157		140		302		266
Provincial mining taxes		104		362		223		611
Share-based compensation (recovery) expense		(64	)	(52	)	(49	)	83
Impairment (reversal of impairment) of assets	3	698		(450	)	698		(450	)
Other expenses	4	164		37		89		58
EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES		1,128		4,945		2,067		6,944
Finance costs		204		130		374		239
EARNINGS BEFORE INCOME TAXES		924		4,815		1,693		6,705
Income tax expense	5	476		1,214		669		1,719
NET EARNINGS		448		3,601		1,024		4,986
Attributable to
Equity holders of Nutrien		440		3,593		1,011		4,971
Non-controlling interest		8		8		13		15
NET EARNINGS		448		3,601		1,024		4,986

NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS")
Basic		0.89		6.53		2.03		9.02
Diluted		0.89		6.51		2.03		8.99
Weighted average shares outstanding for basic EPS		495,379,000		550,048,000		498,261,000		551,335,000
Weighted average shares outstanding for diluted EPS		495,932,000		551,659,000		499,059,000		553,198,000

Condensed Consolidated Statements of Comprehensive Income

	Three Months Ended			Six Months Ended
	June 30			June 30
(Net of related income taxes)	2023	2022		2023		2022
NET EARNINGS	448	3,601		1,024		4,986
Other comprehensive income (loss)
Items that will not be reclassified to net earnings:
Net actuarial (loss) gain on defined benefit plans	?	?		(3	)	1
Net fair value gain (loss) on investments	6	(38	)	11		(7	)
Items that have been or may be subsequently reclassified to net earnings:
Gain (loss) on currency translation of foreign operations	49	(209	)	50		(81	)
Other	13	5		12		21
OTHER COMPREHENSIVE INCOME (LOSS)	68	(242	)	70		(66	)
COMPREHENSIVE INCOME	516	3,359		1,094		4,920
Attributable to
Equity holders of Nutrien	508	3,352		1,081		4,906
Non-controlling interest	8	7		13		14
COMPREHENSIVE INCOME	516	3,359		1,094		4,920

(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Cash Flows

		Three Months Ended				Six Months Ended
		June 30				June 30
	Note	2023		2022		2023		2022
				Note 1				Note 1
OPERATING ACTIVITIES
Net earnings		448		3,601		1,024		4,986
Adjustments for:
Depreciation and amortization		556		505		1,052		966
Share-based compensation (recovery) expense		(64	)	(52	)	(49	)	83
Impairment (reversal of impairment) of assets	3	698		(450	)	698		(450	)
Provision for (recovery of) deferred income tax		100		(53	)	121		(8	)
Net (undistributed) distributed earnings of equity-accounted investees		(23	)	(19	)	140		(58	)
Gain on amendments to other post-retirement pension plans		?		?		(80	)	?
Loss on Blue Chip Swaps	4	92		?		92		?
Long-term income tax receivables and payables		(18	)	120		(90	)	130
Other long-term assets, liabilities and miscellaneous		91		17		98		28
Cash from operations before working capital changes		1,880		3,669		3,006		5,677
Changes in non-cash operating working capital:
Receivables		(2,653	)	(3,933	)	(2,118	)	(4,842	)
Inventories		3,728		1,748		1,560		(861	)
Prepaid expenses and other current assets		337		340		1,012		1,062
Payables and accrued charges		(1,049	)	734		(2,075	)	1,460
CASH PROVIDED BY OPERATING ACTIVITIES		2,243		2,558		1,385		2,496
INVESTING ACTIVITIES
Capital expenditures ¹		(775	)	(477	)	(1,225	)	(828	)
Business acquisitions, net of cash acquired		(5	)	(27	)	(116	)	(68	)
Proceeds from sales of Blue Chip Swaps, net of purchases		(92	)	?		(92	)	?
Net changes in non-cash working capital		(4	)	(9	)	(104	)	(108	)
Other		18		(4	)	(15	)	30
CASH USED IN INVESTING ACTIVITIES		(858	)	(517	)	(1,552	)	(974	)
FINANCING ACTIVITIES
(Repayment of) proceeds from short-term debt, net	7	(1,105	)	(604	)	768		850
Proceeds from long-term debt	8	?		41		1,500		41
Repayment of long-term debt	8	(500	)	(26	)	(517	)	(28	)
Repayment of principal portion of lease liabilities		(100	)	(94	)	(187	)	(173	)
Dividends paid to Nutrien's shareholders	9	(263	)	(264	)	(509	)	(521	)
Repurchase of common shares	9	(150	)	(964	)	(1,047	)	(1,606	)
Issuance of common shares		3		38		31		164
Other		(9	)	(5	)	(34	)	(17	)
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(2,124	)	(1,878	)	5		(1,290	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		3		(29	)	(2	)	(20	)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(736	)	134		(164	)	212
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		1,473		577		901		499
CASH AND CASH EQUIVALENTS - END OF PERIOD		737		711		737		711
Cash and cash equivalents is composed of:
Cash		724		628		724		628
Short-term investments		13		83		13		83
		737		711		737		711
SUPPLEMENTAL CASH FLOWS INFORMATION
Interest paid		227		150		325		200
Income taxes paid		270		396		1,589		1,185
Total cash outflow for leases		129		121		248		228
1 Includes additions to property, plant and equipment, and intangible assets for the three months ended June 30, 2023 of $721 and $54 (2022 - $427 and $50), respectively, and for the six months ended June 30, 2023 of $1,132 and $93 (2022 - $733 and $95), respectively.

(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Changes in Shareholders' Equity

							Accumulated Other Comprehensive
							(Loss) Income ("AOCI")
							(Loss) gain on
								Currency								Equity
	Number of							Translation								Holders		Non-
	Common		Share		Contributed			of Foreign				Total		Retained		of		Controlling		Total
	Shares		Capital		Surplus			Operations		Other		AOCI		Earnings		Nutrien		Interest		Equity
BALANCE - DECEMBER 31, 2021	557,492,516		15,457		149			(176	)	30		(146	)	8,192		23,652		47		23,699
Net earnings	?		?		?			?		?		?		4,971		4,971		15		4,986
Other comprehensive (loss) income	?		?		?			(80	)	15		(65	)	?		(65	)	(1	)	(66	)
Shares repurchased (Note 9)	(19,360,408	)	(539	)	(22	)		?		?		?		(1,075	)	(1,636	)	?		(1,636	)
Dividends declared (Note 9)	?		?		?			?		?		?		(526	)	(526	)	?		(526	)
Non-controlling interest transactions	?		?		?			?		?		?		?		?		(17	)	(17	)
Effect of share-based compensation including issuance of common shares	2,994,221		197		(22	)		?		?		?		?		175		?		175
Transfer of net gain on cash flow hedges	?		?		?			?		(2	)	(2	)	?		(2	)	?		(2	)
Transfer of net actuarial gain on defined benefit plans	?		?		?			?		(1	)	(1	)	1		?		?		?
BALANCE - JUNE 30, 2022	541,126,329		15,115		105			(256	)	42		(214	)	11,563		26,569		44		26,613
BALANCE - DECEMBER 31, 2022	507,246,105		14,172		109			(374	)	(17	)	(391	)	11,928		25,818		45		25,863
Net earnings	?		?		?			?		?		?		1,011		1,011		13		1,024
Other comprehensive income	?		?		?			50		20		70		?		70		?		70
Shares repurchased (Note 9)	(13,378,189	)	(374	)	(26	)		?		?		?		(600	)	(1,000	)	?		(1,000	)
Dividends declared (Note 9)	?		?		?			?		?		?		(527	)	(527	)	?		(527	)
Non-controlling interest transactions	?		?		?			?		?		?		?		?		(13	)	(13	)
Effect of share-based compensation including issuance of common shares	628,402		37		(3	)		?		?		?		?		34		?		34
Transfer of net gain on sale of investment	?		?		?			?		(14	)	(14	)	14		?		?		?
Transfer of net loss on cash flow hedges	?		?		?			?		9		9		?		9		?		9
Transfer of net actuarial loss on defined benefit plans	?		?		?			?		3		3		(3	)	?		?		?
Other	?		?		?			(2	)	?		(2	)	?		(2	)	?		(2	)
BALANCE - JUNE 30, 2023	494,496,318		13,835		80			(326	)	1		(325	)	11,823		25,413		45		25,458

(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Balance Sheets

		June 30				December 31
As at	Note	2023		2022		2022
ASSETS
Current assets
Cash and cash equivalents		737		711		901
Receivables		8,595		10,171		6,194
Inventories		6,062		7,160		7,632
Prepaid expenses and other current assets		602		615		1,615
		15,996		18,657		16,342
Non-current assets
Property, plant and equipment	3	21,920		20,492		21,767
Goodwill	3	12,077		12,213		12,368
Intangible assets	3	2,252		2,283		2,297
Investments		708		731		843
Other assets		973		859		969
TOTAL ASSETS		53,926		55,235		54,586
LIABILITIES
Current liabilities
Short-term debt	7	2,922		2,403		2,142
Current portion of long-term debt	8	44		1,028		542
Current portion of lease liabilities		301		303		305
Payables and accrued charges		9,470		11,682		11,291
		12,737		15,416		14,280
Non-current liabilities
Long-term debt	8	9,498		7,056		8,040
Lease liabilities		861		913		899
Deferred income tax liabilities	5	3,584		3,253		3,547
Pension and other post-retirement benefit liabilities		245		422		319
Asset retirement obligations and accrued environmental costs		1,379		1,376		1,403
Other non-current liabilities		164		186		235
TOTAL LIABILITIES		28,468		28,622		28,723
SHAREHOLDERS' EQUITY
Share capital	9	13,835		15,115		14,172
Contributed surplus		80		105		109
Accumulated other comprehensive loss		(325	)	(214	)	(391	)
Retained earnings		11,823		11,563		11,928
Equity holders of Nutrien		25,413		26,569		25,818
Non-controlling interest		45		44		45
TOTAL SHAREHOLDERS' EQUITY		25,458		26,613		25,863
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		53,926		55,235		54,586

(See Notes to the Condensed Consolidated Financial Statements)

Notes to the Condensed Consolidated Financial Statements

As at and for the Three and Six Months Ended June 30, 2023

NOTE 1 BASIS OF PRESENTATION

Nutrien Ltd. (collectively with its subsidiaries, "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.

These unaudited interim condensed consolidated financial statements ("interim financial statements") are based on International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and have been prepared in accordance with IAS 34, "Interim Financial Reporting". The accounting policies and methods of computation used in preparing these interim financial statements are materially consistent with those used in the preparation of our 2022 annual consolidated financial statements. These interim 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 2022 annual consolidated financial statements.

Certain immaterial 2022 figures have been reclassified in the condensed consolidated statements of cash flows.

In management's opinion, the interim financial statements include all adjustments necessary to fairly present such information in all material respects. Interim results are not necessarily indicative of the results expected for any other interim period or the fiscal year.

These interim financial statements were authorized by the Audit Committee of the Board of Directors for issue on August 2, 2023.

NOTE 2 SEGMENT INFORMATION

The Company has four reportable operating segments: Nutrien Ag Solutions ("Retail"), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and it provides services directly to growers through a network of farm centers in North America, South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each produces.

		Three Months Ended June 30, 2023
								Corporate
		Retail	Potash	Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	- third party	9,127	976	1,065		486		?		?		11,654
	- intersegment	1	140	306		74		?		(521	)	?
Sales	- total	9,128	1,116	1,371		560		?		(521	)	11,654
Freight, transportation and distribution		?	107	155		58		?		(68	)	252
Net sales		9,128	1,009	1,216		502		?		(453	)	11,402
Cost of goods sold		7,197	353	817		453		?		(584	)	8,236
Gross margin		1,931	656	399		49		?		131		3,166
Selling expenses		971	3	7		2		(2	)	(2	)	979
General and administrative expenses		55	5	5		4		88		?		157
Provincial mining taxes		?	104	?		?		?		?		104
Share-based compensation recovery		?	?	?		?		(64	)	?		(64	)
Impairment of assets		465	?	?		233		?		?		698
Other expenses (income)		29	5	(20	)	1		151		(2	)	164
Earnings (loss) before finance costs and income taxes		411	539	407		(191	)	(173	)	135		1,128
Depreciation and amortization		188	115	162		71		20		?		556
EBITDA ¹		599	654	569		(120	)	(153	)	135		1,684
Integration and restructuring related costs		3	?	?		?		7		?		10
Share-based compensation recovery		?	?	?		?		(64	)	?		(64	)
Impairment of assets		465	?	?		233		?		?		698
ARO/ERL expense for non-operating sites ²		?	?	?		?		6		?		6
Foreign exchange loss, net of related derivatives		?	?	?		?		52		?		52
Loss on Blue Chip Swaps		?	?	?		?		92		?		92
Adjusted EBITDA		1,067	654	569		113		(60	)	135		2,478
Assets - at June 30, 2023		24,465	13,629	11,474		2,429		2,692		(763	)	53,926
1 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.
2 ARO/ERL refers to asset retirement obligations and accrued environmental costs.

		Three Months Ended June 30, 2022
								Corporate
		Retail	Potash	Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	- third party	9,377	2,667	1,915		547		?		?		14,506
	- intersegment	45	78	446		98		?		(667	)	?
Sales	- total	9,422	2,745	2,361		645		?		(667	)	14,506
Freight, transportation and distribution		?	77	132		55		?		(43	)	221
Net sales		9,422	2,668	2,229		590		?		(624	)	14,285
Cost of goods sold		7,082	399	1,171		434		?		(800	)	8,286
Gross margin		2,340	2,269	1,058		156		?		176		5,999
Selling expenses		1,013	3	7		2		(2	)	(6	)	1,017
General and administrative expenses		54	2	4		3		77		?		140
Provincial mining taxes		?	362	?		?		?		?		362
Share-based compensation recovery		?	?	?		?		(52	)	?		(52	)
Reversal of impairment of assets		?	?	?		(450	)	?		?		(450	)
Other expenses (income)		21	5	(54	)	8		48		9		37
Earnings (loss) before finance costs and income taxes		1,252	1,897	1,101		593		(71	)	173		4,945
Depreciation and amortization		175	130	139		41		20		?		505
EBITDA		1,427	2,027	1,240		634		(51	)	173		5,450
Integration and restructuring related costs		?	?	?		?		11		?		11
Share-based compensation recovery		?	?	?		?		(52	)	?		(52	)
Reversal of impairment of assets		?	?	?		(450	)	?		?		(450	)
COVID-19 related expenses		?	?	?		?		3		?		3
Foreign exchange loss, net of related derivatives		?	?	?		?		31		?		31
Adjusted EBITDA		1,427	2,027	1,240		184		(58	)	173		4,993
Assets - at December 31, 2022		24,451	13,921	11,807		2,661		2,622		(876	)	54,586

		Six Months Ended June 30, 2023
									Corporate
		Retail	Potash		Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	- third party	12,549	1,999		2,219		994		?		?		17,761
	- intersegment	1	194		570		138		?		(903	)	?
Sales	- total	12,550	2,193		2,789		1,132		?		(903	)	17,761
Freight, transportation and distribution		?	182		261		116		?		(108	)	451
Net sales		12,550	2,011		2,528		1,016		?		(795	)	17,310
Cost of goods sold		10,004	658		1,588		880		?		(899	)	12,231
Gross margin		2,546	1,353		940		136		?		104		5,079
Selling expenses		1,736	6		15		4		(4	)	(8	)	1,749
General and administrative expenses		105	8		10		7		172		?		302
Provincial mining taxes		?	223		?		?		?		?		223
Share-based compensation recovery		?	?		?		?		(49	)	?		(49	)
Impairment of assets		465	?		?		233		?		?		698
Other expenses (income)		44	(2	)	(34	)	13		70		(2	)	89
Earnings (loss) before finance costs and income taxes		196	1,118		949		(121	)	(189	)	114		2,067
Depreciation and amortization		369	212		296		138		37		?		1,052
EBITDA		565	1,330		1,245		17		(152	)	114		3,119
Integration and restructuring related costs		3	?		?		?		12		?		15
Share-based compensation recovery		?	?		?		?		(49	)	?		(49	)
Impairment of assets		465	?		?		233		?		?		698
ARO/ERL expense for non-operating sites		?	?		?		?		6		?		6
Foreign exchange loss, net of related derivatives		?	?		?		?		18		?		18
Loss on Blue Chip Swaps		?	?		?		?		92		?		92
Adjusted EBITDA		1,033	1,330		1,245		250		(73	)	114		3,899
Assets - at June 30, 2023		24,465	13,629		11,474		2,429		2,692		(763	)	53,926

		Six Months Ended June 30, 2022
									Corporate
		Retail		Potash	Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	- third party	13,210		4,377	3,412		1,164		?		?		22,163
	- intersegment	73		312	785		177		?		(1,347	)	?
Sales	- total	13,283		4,689	4,197		1,341		?		(1,347	)	22,163
Freight, transportation and distribution		?		171	227		116		?		(90	)	424
Net sales		13,283		4,518	3,970		1,225		?		(1,257	)	21,739
Cost of goods sold		10,098		704	2,052		862		?		(1,233	)	12,483
Gross margin		3,185		3,814	1,918		363		?		(24	)	9,256
Selling expenses		1,735		6	15		4		(4	)	(12	)	1,744
General and administrative expenses		99		4	10		6		147		?		266
Provincial mining taxes		?		611	?		?		?		?		611
Share-based compensation expense		?		?	?		?		83		?		83
Reversal of impairment of assets		?		?	?		(450	)	?		?		(450	)
Other expenses (income)		9		2	(80	)	12		101		14		58
Earnings (loss) before finance costs and income taxes		1,342		3,191	1,973		791		(327	)	(26	)	6,944
Depreciation and amortization		344		242	262		82		36		?		966
EBITDA		1,686		3,433	2,235		873		(291	)	(26	)	7,910
Integration and restructuring related costs		?		?	?		?		20		?		20
Share-based compensation expense		?		?	?		?		83		?		83
Reversal of impairment of assets		?		?	?		(450	)	?		?		(450	)
COVID-19 related expenses		?		?	?		?		8		?		8
Foreign exchange loss, net of related derivatives		?		?	?		?		56		?		56
Gain on disposal of investment		(19	)	?	?		?		?		?		(19	)
Adjusted EBITDA		1,667		3,433	2,235		423		(124	)	(26	)	7,608
Assets - at December 31, 2022		24,451		13,921	11,807		2,661		2,622		(876	)	54,586

	Three Months Ended				Six Months Ended
	June 30				June 30
	2023		2022		2023		2022
Retail sales by product line
Crop nutrients	3,986		4,548		5,321		6,135
Crop protection products	3,070		2,983		4,224		4,370
Seed	1,428		1,269		1,935		1,727
Merchandise	273		280		519		514
Nutrien Financial	122		91		179		140
Services and other	308		310		456		485
Nutrien Financial elimination ¹	(59	)	(59	)	(84	)	(88	)
	9,128		9,422		12,550		13,283
Potash sales by geography
Manufactured product
North America	577		757		994		1,684
Offshore ²	539		1,988		1,199		3,005
	1,116		2,745		2,193		4,689
Nitrogen sales by product line
Manufactured product
Ammonia	389		786		805		1,377
Urea and ESN^® ³	490		719		981		1,259
Solutions, nitrates and sulfates	381		578		752		1,052
Other nitrogen and purchased products ³	111		278		251		509
	1,371		2,361		2,789		4,197
Phosphate sales by product line
Manufactured product
Fertilizer	289		358		591		790
Industrial and feed	189		204		384		388
Other phosphate and purchased products	82		83		157		163
	560		645		1,132		1,341
1 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.
2 Relates to Canpotex Limited ("Canpotex") (Note 11) and includes provisional pricing adjustments for the three months ended June 30, 2023 of $(173) (2022 - $191) and the six months ended June 30, 2023 of $(320) (2022 - $253).
3 Certain immaterial 2022 figures have been reclassified.

NOTE 3 IMPAIRMENT (REVERSAL OF IMPAIRMENT) OF ASSETS

We recorded the following impairment (reversal of impairment) of assets in the condensed consolidated statements of earnings:

		Three and Six Months Ended
		June 30
Segment	Category	2023	2022
Retail	Goodwill	422	?
	Intangible assets	43	?
Phosphate	Property, plant and equipment	233	(450	)
Impairment (reversal of impairment) of assets		698	(450	)

Property, Plant and Equipment

During the three and six months ended June 30, 2023, we identified an impairment trigger for our Phosphate cash generating units ("CGUs"), White Springs and Aurora, primarily as a result of the decrease in our forecasted phosphate margins. We completed our impairment analysis for these CGUs.

We recorded an impairment at our White Springs CGU based on the following:

Pre-tax impairment loss ($)		233
Pre-tax recoverable amount ($)		504
Valuation methodology		Value in use
Valuation technique		Pre-tax discounted cash flow to end of expected mine life
Key assumptions
End of expected mine life (proven and probable reserves) (year) ¹		2032
Pre-tax discount rate ² (%)		15.6
Post-tax discount rate ² (%)		12.0
Forecasted EBITDA ³ ($)		720
1 The White Springs CGU has a shorter expected mine life and is therefore more sensitive to changes in short and medium-term forecasted phosphate margins.
2 Discount rate used in the previous measurement was 12.0 percent (pre-tax - 15.2 percent).
3 Forecasted EBITDA to 2028.

For the Aurora CGU, we determined that there was no impairment. The carrying amount of the Aurora CGU was $1,660 (2022 - $1,650 after impairment reversal) compared to the recoverable amount of $2,000. During the three and six months ended June 30, 2022, we recorded an impairment reversal of $450 at our Aurora CGU as a result of increased pricing forecast that reflected the macroeconomic environment at the time. The Aurora CGU recoverable value was based on fair value less costs of disposal ("FVLCD") (a level 3 measurement) using after-tax discounted cash flows (using a five-year projection plus a terminal year to the end of expected mine life). For additional information relating to the reversal of the impairment, including the key assumptions used in the calculation, see Note 13 of the 2022 annual consolidated financial statements.

The recoverable amount of our Aurora and White Springs CGU used the following key assumptions: our forecasted EBITDA, discount rate, long-term growth rate and end of expected mine life. We used key assumptions that were based on historical data and estimates of future results from internal sources, independent third-party price benchmarks, and mineral reserve technical reports, as well as industry and market trends.

Phosphate Sensitivities

			Change to Recoverable Amount ($)
Key Assumptions as at June 30, 2023	Change in Assumption		White Springs		Aurora
Forecasted EBITDA over forecast period ($)	+ / -	5.0 percent	+ / -	40	+ / -	220
Pre-tax discount rate (%)	+ / -	1.0 percent	- / +	20	n/a	n/a
Post-tax discount rate (%)	+ / -	1.0 percent	n/a	n/a	- / +	190
Long-term growth rate (%)	+ / -	1.0 percent	n/a	n/a	+ / -	110

Goodwill and Intangible Assets

During the three and six months ended June 30, 2023, we revised our forecasted EBITDA for the Retail - South America group of CGUs which triggered an impairment analysis. Due to the impact of crop input price volatility, more moderate long-term growth assumptions and higher interest rates, we have lowered our product margin expectations and deferred certain of our planned strategic investments. As a result, this reduced our forecasted earnings and growth.

Retail - South America group of CGUs		June 30, 2023
Carrying amount		1,496
Recoverable amount		1,031
Impairment recognized relating to:
Goodwill ¹		422
Intangible assets		43
1 Includes $197 relating to our acquisition of Casa do Adubo S.A., which is equal to the cost and accumulated impairment as at June 30, 2023.

After the recognition of the impairment, goodwill for the South America group of CGUs is nil. We used the FVLCD methodology based on after-tax discounted cash flows (10-year projections plus a terminal value) and incorporated assumptions an independent market participant would apply. We adjusted discount rates for the country risk premium in which we expect to generate cash flows. We used comparative market multiples to ensure discounted cash flow results are reasonable.

The key assumptions with the greatest influence on the calculation of the recoverable amount are the discount rate, terminal growth rate and forecasted EBITDA. The key forecast assumptions were based on historical data and our estimates of future results from internal sources considering industry and market trends.

		As at
Key Assumptions Used in Impairment Model		June 30, 2023
Terminal growth rate (%)		6.0
Forecasted EBITDA over forecast period ($)		4,300
Discount rate ¹ (%)		16.6
1 Discount rate used in the previous measurement was 16.0 percent, which was included as part of our Retail - International group of CGUs.

			Decrease to
Key Assumptions	Change in Key Assumption		Recoverable Amount ($)
Terminal growth rate (%)	-	1.0 percent	50
Forecasted EBITDA over forecast period ($)	-	5.0 percent	100
Discount rate (%)	+	1.0 percent	120

NOTE 4 OTHER EXPENSES (INCOME)

	Three Months Ended				Six Months Ended
	June 30				June 30
	2023		2022		2023		2022
Integration and restructuring related costs	10		11		15		20
Foreign exchange loss, net of related derivatives	52		31		18		56
Earnings of equity-accounted investees	(35	)	(77	)	(72	)	(118	)
Bad debt expense	30		14		39		14
COVID-19 related expenses	?		3		?		8
Gain on disposal of investment	?		?		?		(19	)
Project feasibility costs	21		17		34		29
Customer prepayment costs	12		9		26		22
Loss on Blue Chip Swaps	92		?		92		?
Gain on amendments to other post-retirement pension plans	?		?		(80	)	?
Other (income) expenses	(18	)	29		17		46
	164		37		89		58

The Central Bank of Argentina maintains certain currency controls that limit our ability to remit cash from Argentina. Blue Chip Swaps are trade transactions that effectively allow companies to transfer US dollars out of Argentina. Through this mechanism, we incurred a loss of $92 from the purchase of securities denominated in Argentine peso and corresponding sale in US dollars during the three and six months ended June 30, 2023. The loss is a result of the significant divergence between the Blue Chip Swap market exchange rate and the official Argentinian Central Bank rate.

NOTE 5 INCOME TAXES

A separate estimated average annual effective income tax rate was determined for each taxing jurisdiction and applied individually to the interim period pre-tax earnings for each jurisdiction.

	Three Months Ended		Six Months Ended
	June 30		June 30
	2023	2022	2023	2022
Income tax expense	476	1,214	669	1,719
Actual effective tax rate on earnings (%)	39	25	32	26
Actual effective tax rate including discrete items (%)	51	25	40	25
Discrete tax adjustments that impacted the tax rate	114	12	132	20

The following table summarizes the income tax balances within the condensed consolidated balance sheets:

Income Tax Assets and Liabilities	Balance Sheet Location	As at June 30, 2023	As at December 31, 2022
Income tax assets
Current	Receivables	380	144
Non-current	Other assets	125	54
Deferred income tax assets	Other assets	367	448
Total income tax assets		872	646
Income tax liabilities
Current	Payables and accrued charges	186	899
Non-current	Other non-current liabilities	28	46
Deferred income tax liabilities	Deferred income tax liabilities	3,584	3,547
Total income tax liabilities		3,798	4,492

NOTE 6 FINANCIAL INSTRUMENTS

Fair Value

Estimated fair values for financial instruments are designed to approximate amounts for which the instruments could be exchanged in a current arm's-length transaction between knowledgeable, willing parties. The valuation policies and procedures for financial reporting purposes are determined by our finance department. There have been no changes to our valuation methods presented in Note 10 of the 2022 annual consolidated financial statements and those valuation methods have been applied in these interim financial statements.

The following table presents our fair value hierarchy for financial instruments carried at fair value on a recurring basis or measured at amortized cost and require fair value disclosure. The table does not include fair value information for financial instruments that are measured using their carrying amount as a reasonable approximation of fair value.

	June 30, 2023							December 31, 2022
	Carrying							Carrying
Financial assets (liabilities) measured at	Amount		Level 1		Level 2		Level 3	Amount		Level 1		Level 2		Level 3
Fair value on a recurring basis ¹
Derivative instrument assets	22		?		22		?	7		?		7		?
Other current financial assets - marketable securities ²	156		30		126		?	148		19		129		?
Investments at FVTOCI ³	197		187		?		10	200		190		?		10
Derivative instrument liabilities	(66	)	?		(66	)	?	(35	)	?		(35	)	?
Amortized cost
Current portion of long-term debt
Notes and debentures	?		?		?		?	(500	)	(493	)	?		?
Fixed and floating rate debt	(44	)	?		(44	)	?	(42	)	?		(42	)	?
Long-term debt
Notes and debentures	(9,386	)	(6,502	)	(2,211	)	?	(7,910	)	(3,581	)	(3,656	)	?
Fixed and floating rate debt	(112	)	?		(112	)	?	(130	)	?		(130	)	?
1 During the periods ended June 30, 2023 and December 31, 2022, there were no transfers between levels for financial instruments measured at fair value on a recurring basis.
2 Marketable securities consist of equity and fixed income securities.
3 Investments at fair value through other comprehensive income ("FVTOCI") is primarily comprised of shares in Sinofert Holdings Ltd.

NOTE 7 SHORT-TERM DEBT

	Rate of Interest (%)	Total Facility Limit as at June 30, 2023	As at June 30, 2023	As at December 31, 2022
Credit facilities
Unsecured revolving term credit facility	n/a	4,500	?	?
Unsecured revolving term credit facility	n/a	2,000	?	500
Uncommitted revolving demand facility	n/a	1,000	?	?
Other credit facilities ¹		1,310
South America ²	1.3 - 13.2		588	453
Australia	5.1		100	190
Other	4.1		89	9
Commercial paper	5.4 - 5.8		2,038	783
Other short-term debt	n/a		107	207
			2,922	2,142
1 Total facility limit amounts include some facilities with maturities in excess of one year.
2 Our credit facilities are either denominated in local currency or US dollars. The range of interest rates for South America excludes our local currency denominated Argentina facility with an interest rate of 92.4 percent and a minimal outstanding balance as at June 30, 2023.

NOTE 8 LONG-TERM DEBT

	Six Months Ended
	June 30
	Rate of interest (%)	Maturity	Amount
Notes repaid 2023	1.900	May 13, 2023	500

Notes issued 2023	4.900	March 27, 2028	750
Notes issued 2023	5.800	March 27, 2053	750
			1,500

The notes issued in the six months ended June 30, 2023, are unsecured, rank equally with our existing unsecured debt, and have no sinking fund requirements prior to maturity. Each series is redeemable and has various provisions for redemption prior to maturity, at our option, at specified prices.

NOTE 9 SHARE CAPITAL

Share Repurchase Programs

			Maximum	Maximum	Number of
	Commencement		Shares for	Shares for	Shares
	Date	Expiry	Repurchase	Repurchase (%)	Repurchased
2021 Normal Course Issuer Bid	March 1, 2021	February 28, 2022	28,468,448	5	22,186,395
2022 Normal Course Issuer Bid	March 1, 2022	February 7, 2023	55,111,110	10	55,111,110
2023 Normal Course Issuer Bid ¹	March 1, 2023	February 29, 2024	24,962,194	5	5,375,397
1 The 2023 normal course issuer bid will expire earlier than the date above if we acquire the maximum number of common shares allowable or otherwise decide not to make any further repurchases.

Purchases under the normal course issuer bids were, or may be, made through open market purchases at market prices as well as by other means permitted by applicable securities laws, including private agreements.

The following table summarizes our share repurchase activities during the period:

	Three Months Ended		Six Months Ended
	June 30		June 30
	2023	2022	2023	2022
Number of common shares repurchased for cancellation	1,626,899	11,712,173	13,378,189	19,360,408
Average price per share (US dollars)	61.47	89.51	74.73	84.48
Total cost	101	1,049	1,000	1,636

Dividends Declared

We declared a dividend per share of $0.53 (2022 - $0.48) during the three months ended June 30, 2023, payable on July 14, 2023 to shareholders of record on June 30, 2023.

NOTE 10 SEASONALITY

Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in the spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application season. The results of this seasonality have a corresponding effect on receivables from customers and rebates receivables, inventories, prepaid expenses and other current assets, and trade payables. Our short-term debt also fluctuates during the year to meet working capital requirements. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are typically concentrated in December and January and inventory prepayments paid to our suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

NOTE 11 RELATED PARTY TRANSACTIONS

We sell potash outside Canada and the United States exclusively through Canpotex. Canpotex sells potash to buyers in export markets pursuant to term and spot contracts at agreed upon prices. Our total revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. Sales to Canpotex are shown in Note 2.

As at	June 30, 2023		December 31, 2022
Receivables from Canpotex	421		866

View source version on businesswire.com: https://www.businesswire.com/news/home/20230728544370/en/

Contact

Investor Relations:
Jeff Holzman
Vice President, Investor Relations
(306) 933-8545
Investors@nutrien.com

Media Relations:
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015

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Mineninfo

Nutrien Ltd.

Branche:

Bergbau

Heimatland:

Kanada

WKN:

A2DWB8

ISIN:

CA67077M1086

www.nutrien.com

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Nutrien Reports Second Quarter 2023 Results

Nutrien Ltd.

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