NUTRIEN AG SOLUTIONS (“RETAIL”)

We are bolstering our position as the leading retail provider of crop inputs by staying focused on our grower customers.

We expect to deliver 3 percent organic adjusted EBITDA growth annually for the next three years, via customer value creation including deeper penetration of our proprietary product portfolio, growth in digital and financing capabilities, and optimization of our network and sustainability solutions.

We are executing on our accretive tuck-in strategy in the US and replicating our Retail model in underserved markets, such as Brazil, to leverage the benefits of our business to quickly add efficiencies, achieve synergies and deliver growth.

POTASH

We operate the most reliable, safe, and efficient Potash assets as part of a diverse and flexible mine network. This allows us to position the right tonnes at the right time and to minimize risk.

We are unique and advantaged, with 5 million tonnes of incremental available capacity and with the option to build an additional 5 million tonnes in brownfield expansion as needed – significantly more quickly and at a lower cost than any greenfield projects.

We are progressing our Next Generation Potash program, which is focused on using the latest mining automation and digital technologies from the mine face right through to the mill. This is expected to further lower our production cost per tonne and improve safety performance.

NITROGEN & PHOSPHATE

Our Nitrogen production network is low-cost and diversified, with opportunities to execute high-return and low-risk brownfield projects, expand our production of sustainability products and significantly lower our carbon footprint. Nutrien is already one of the largest producers of blue/low carbon ammonia in the world.

Operational initiatives in our Nitrogen and Phosphate businesses are expected to lower production costs per tonne, increase asset utilization and increase sales volumes.

Longer-term, we anticipate there could be significant growth potential for ammonia as a means to transport hydrogen as fuel, which we are well positioned to supply.

FERTILIZER PRICES

Nutrien produces and distributes approximately 27 million tonnes of potash, nitrogen and phosphate annually which creates significant earnings leverage when fertilizer prices improve.

Fertilizer prices have begun to recover from cyclical lows and are now above 3 year average levels, but below greenfield project economics. Underlying fundamentals for potash and nitrogen in particular, are strengthening, providing tremendous earnings growth potential.

SALES VOLUMES

We have an additional 5 million tonnes of available potash capacity beyond existing production levels, a characteristic unique to Nutrien in the potash industry.

We expect to deploy this available capacity as global demand grows, increasing our sales volumes and further lowering our production costs per tonne.

STRONG BALANCE SHEET & CASH FLOWS

Nutrien’s integrated business model provides a diversified earnings base, underpinned by stable growth in Nutrien Ag Solutions and earnings torque from Potash, Nitrogen and Phosphate.

This integrated model generates strong free cash flows, and facilitates efficient allocation of capital to grow our business while maintaining a strong balance sheet.

CREDIBILITY

Nutrien has a proven track record of execution including delivering company synergies, strategic growth and strong shareholder returns.

Our sights are aimed on growth and optimization of our existing business, forging a path for the future of agriculture while maximizing shareholder returns.

The importance of food security and agriculture’s purpose to feed the world has never been more apparent and important. Nutrien continued to execute its strategy and again demonstrated stability with its business model which is built to weather market volatility. Nutrien is positioned to take advantage of the strengthening agricultural fundamentals we saw this past year and into 2021.

While COVID-19 created significant challenges for most companies globally, Nutrien successfully stuck to our strategy, stayed the course and demonstrated stability. In fact, thanks to the adaptability, resilience and stamina of our more than 23,000 employees worldwide, we were able to work together in an organized and proactive manner to allow Nutrien to not only weather the storm, but to continue to grow and strengthen our business. Having said this I recognize it’s been a very challenging year for people around the globe, including many of our employees and communities where we operate. At Nutrien, we strive to recognize and support our key stakeholders in a multitude of ways to address the challenges created by the global pandemic.

Our sector and Company have a responsibility to provide the world’s farmers with the crop inputs needed to grow and produce healthy and nutritious food. In fact, we did just that. At the outset of the pandemic we rolled out a comprehensive operating plan and have been adapting to new developments ever since. We implemented COVID-19 protocols across our operations to help protect and support our employees, and our facilities have been able to continue to operate at normal rates, and in many cases even above pre-COVID-19 levels. Virtually all of our corporate staff shifted to working from home in early 2020 and we expect that to continue until it is safe to return to our offices, which may vary by region. We also hosted frequent company-wide webcasts to ensure an open exchange of information with the Executive Leadership Team and all Nutrien employees, which is ongoing. We remain committed to helping ensure our employees and communities have the tools and support they need to weather this storm.

Looking into 2021, the outlook for our business shows significant strengthening in market fundamentals. This is supported by much stronger crop prices globally and

farmers’ cash margins above 9-year highs, which is due to a combination of strong global demand for grains and oilseeds and lower-than-expected crop production in 2020.

PROGRESS AND PERFORMANCE

Taking a step back for reflection, it has been three years since the formation of Nutrien and I believe the benefits of the merger are clearly evident. If you look at our 2017 combined historical adjusted EBITDA levels and adjust them for the lower average fertilizer prices in 2020, our 2020 adjusted EBITDA is $900 million higher – thanks primarily to the over $650 million in ongoing synergies we captured as a result of the merger. Furthermore, over this time we increased our dividend by 15 percent, bought back 12 percent of our common shares outstanding and have grown our Nutrien Ag Solutions business by over 20 percent – all while having one of the best health and safety records in the industry.

During 2020, we also made good progress toward our targets for virtually all of the key metrics that we identified in 2019, as we continue to focus on controlling our controllables. This included improved cash cost of production per tonne for potash and nitrogen, increasing Retail adjusted EBITDA per US selling location, stronger adjusted EBITDA margins for our Nutrien Ag Solutions business and improved Retail average working capital and cash operating coverage results.

We continued to grow Nutrien Ag Solutions in 2020, particularly in Australia, Brazil and the US. The Ruralco Holdings Limited (“Ruralco”) acquisition in Australia, which closed in late 2019, has been an exceptional acquisition as we have captured the originally identified $30 million in synergies ahead of schedule, and announced a further $20 million in synergies expected to be captured by the end of 2021. In Brazil, we made two acquisitions in 2020 and expect run-rate revenue in Brazil to surpass $500 million in 2021. We anticipate Brazil could generate $100 million in annual adjusted EBITDA within the next three years.

Another major success story this year was the acceptance and adoption of our leading Retail digital platform, where sales exceeded $1.2 billion in 2020 – more than double the goal of $500 million we had set at the start of the year. While the pandemic played a role in the rapid rate of use, we believe this strong and positive trend will continue, particularly given the new functionalities we expect to introduce.

Within our Potash operations we increased sales volumes by over 1 million tonnes this year, and took actions to further

reduce our cash cost of production per tonne which resulted in record low results for Nutrien. The outlook for potash has improved for 2021, starting the year at much higher prices than the average in 2020, while remaining very affordable for growers. For our Nitrogen business, we achieved record high sales volumes in 2020 through higher combined ammonia operating rates at our North American facilities and the benefit from recent brownfield debottleneck expansions which were brought on-stream on time and on budget.

We sold our 26 percent equity position in the Misr Fertilizers Production Company S.A.E. (“MOPCO”) nitrogen facility in Egypt for $540 million, and expect to redeploy the proceeds to generate higher returns for shareholders. This is another example of our commitment to a continual and rigorous portfolio review to optimize our business.

OUR ESG AND SUSTAINABILITY GOALS

During 2020, we made great strides towards our goal to be the leader in sustainability in the global agriculture sector. That is one of the reasons our theme for this year’s Annual Report is “Leading Solutions for Sustainable Agriculture” and we have taken that challenge and opportunity to heart. We are working on our broader climate-smart strategy, with numerous investments made over the years to develop climate-friendly products and services. For example, Nutrien is one of the leading producers of blue/low carbon ammonia, with approximately 1 million tonnes of production capability. Looking back on 2020, we achieved an approximate 20 percent improvement in our overall ESG ratings, and made substantial progress compared to our peer groups. We expect to unveil a comprehensive long-term strategy, plans and targets in April 2021 to continue to demonstrate our leadership in this area.

In the area of safety, health and environment, I’m pleased to report that 2020 was our most successful year to date which meant we sent more workers home safe each day and maintained a low level of environmental incidents. We believe our safety culture and leadership are the primary drivers of these results. By focusing on prevention of incidents, increasing awareness through leadership presence, and creating an open dialogue environment, we improved performance. We expect to build on this year’s excellent results, as nothing is more important to me, the Nutrien Executive Leadership Team or the Board of Directors than the well-being of our people and the communities in which we operate.

In late 2020, Nutrien announced what we expect will be the world’s leading carbon management and sustainable agriculture program, and I believe we are uniquely positioned to offer the industry’s most comprehensive end-to-end carbon program. The program makes it easy for growers to adopt more sustainable agronomic practices that generate significant financial benefits for the grower, while also delivering positive carbon outcomes that can be seamlessly verified, thereby creating carbon credits that can be traded. We have the opportunity to leverage and further strengthen our trusted and direct relationship with growers across North and South America and Australia, with year-round and full-acre agronomic support and advice. Our position is further strengthened by our investments in our integrated digital hub, which streamlines data collection and the measurement of sustainability performance, leveraging one of the widest ranges of proprietary and third-party products and value-added services in the industry. Nutrien is well positioned to succeed and support all aspects of carbon credit generation and monetization given the breadth of our assets, capabilities, digital platform, industry leadership and access to and strong relationships with growers.

In the coming years I plan to call on companies and leaders across the agriculture industry, as well as governments, to come together to put in place the systems and policies needed to establish a new carbon economy for agriculture. We believe climate change is one of the world’s biggest issues.

From a people perspective, we are pleased to report the results of our 2020 employee engagement survey, where our overall engagement score was 89 percent, a leading score among peers. We are advancing efforts related to diversity and inclusion, and in 2020, we established a Global Inclusion Council of Senior Leaders from each business unit and geography. We also structured a new equity, diversity and inclusion (“EDI”) center of excellence which will be operationalized in the first quarter of 2021 and we will provide targets and goals. Lastly, in November Nutrien was named one of Canada’s Top Employers for the second year in a row. This is one of several awards and recognitions we have received recently, in addition to, Achievers 50 Most Engaged Workplaces, Canada’s Top Employers for Young People, Canada’s Best Diversity Employers and Saskatchewan’s Top Employer.

We also gave back to the communities in which we operate, particularly in this year of increased need. We contributed $18 million in community investment including approximately $2 million for hunger relief, working with over 200 charities supporting food programs in North America, Australia, South America and Trinidad. Disaster relief needs were also high this year and we donated nearly $250,000 to local communities impacted by fires in the Western US and Australia, as well those impacted by the Derecho storm in Iowa and hurricanes in the Southern US.

LOOKING AHEAD

We believe Nutrien is the best-positioned company in the ag sector to capitalize on improving market fundamentals, and to capture additional potash volume the market needs by using our 5 million tonnes of strategic available capacity. We have levers to grow our earnings significantly, with actions under our control and as market fundamentals continue to improve. We will benefit from stronger global agricultural markets and the expected improvement in the fertilizer cycle – and as always we will focus on what we can control and follow through on our commitments.

As the world’s largest provider of crop inputs, services and solutions, Nutrien has a vital role to play in producing more food and delivering on our purpose to Grow Our World from the Ground Up. 2020 has been a challenging year for everyone, including Nutrien’s over 23,000 employees globally, who by working together, have made a major contribution to feeding the world and delivering strong results through this pandemic. On behalf of the Board and the Executive Leadership Team, I want to thank our valued employees, customers and communities in which we operate for the commitment they have shown during these unprecedented times.

Thank You,

Chuck Magro

President and Chief Executive Officer

February 18, 2021

We focus on enhancing our world-class and low-cost potash and nitrogen production network and creating value and efficiencies through the integration of our supply chain. This includes the optimization and growth of the world’s largest Ag retail network. We develop and deliver value-enhancing whole-acre solutions to help growers produce abundant, healthy and sustainable food. These solutions include our comprehensive digital capabilities, agronomic tools and deep portfolio of proprietary products.

We invest in new tools and solutions to help lower our costs, to drive efficiencies and safety and to better serve our customers, including the use of leading solutions for sustainable agriculture. We developed the leading digital agriculture retail platform that provides field planning, digital agronomy, e-commerce and sustainability solutions and we continue to expand our proprietary product portfolio. Our Next Generation Potash program continues to progress and we are executing initiatives in Nitrogen that leverage technology to lower production costs, increase efficiency and improve safety and sustainability results.

Nutrien is focused on being a leader in reducing carbon emissions generated along the ag value chain. Nutrien’s Carbon Program creates the opportunity to financially reward growers who apply best practices and climate smart products, which is expected to drive a step change in agricultural sustainability and improved carbon management. By leveraging our unique relationship with the grower, we can deliver an end-to-end program where we can add value throughout.

At our nitrogen production facilities, we have the capability to produce approximately 1 million tonnes of blue/low carbon ammonia annually, we are planning to expand the production of sustainable products and we are further planning to reduce our carbon footprint through energy use efficiency and abatement projects. At our potash mines, we are planning to reduce our carbon footprint and lower our costs through self-generated electricity and heat, and we are progressing projects to improve water management.

Nutrien is focused on creating long-term value for shareholders, including earnings growth. We believe much of this growth is within our control by investing in our world-class Retail business, growing nutrient production and optimizing the entire network. Our capital allocation policy prioritizes sustaining our assets, preserving the strength and resiliency of our balance sheet, supporting a sustainable and growing dividend and applying a rigorous compete-for-capital reinvestment strategy to maximize shareholder value.

We are committed to reducing the environmental impacts of our operations on air, land and water, and developing products and innovative solutions that help growers tackle the environmental challenges facing the agriculture industry.

Working with growers to apply today’s best practices is key to the sustainability of the agriculture industry. Development of new technologies, practices and programs are required to support this journey, which is why Nutrien launched a comprehensive agriculture carbon program and continues to invest in the development of a portfolio of sustainable products and solutions for growers. We are also helping drive nutrient use efficiency and farm productivity, provide environmentally sustainable soil and plant health solutions, and enable digital agronomic and sustainability analysis.

		LEARN MORE

      Nutrien’s Carbon Program p14

      Blue/low Carbon Ammonia p17

      Next Generation Potash p16

As part of Nutrien’s purpose driven culture, we aim to develop respectful and positive relationships with our employees, contractors, suppliers, customers, and local communities.

We attract and retain our people by investing in the experience and engagement of our employees, developing the best talent, and fostering diversity and inclusion in Nutrien’s culture. In addition, we have an effective succession management process to safeguard the long-term achievement of our strategy.

Nothing is more important to Nutrien than the well-being of our employees, which was emphasized by our response during the COVID-19 pandemic. Ensuring safe operations and delivering on our commitment to keep employees and contractors safe are also essential elements of delivering strong business performance.

We embed strong corporate governance systems and principles in our business through a diverse and independent Board of Directors, strong ethical principles that inform our activities, and rigorous systems for cybersecurity and data privacy.

Nutrien’s corporate governance framework includes policies and processes that define the roles of the Board and Executive Leadership Team. It also ensures that our business practices meet high ethical standards.

		LEARN MORE

      https://www.nutrien.com/       what-we-do/governance

NUTRIEN’S CARBON PROGRAM

Nutrien launched what we expect to be the agricultural industry’s most comprehensive end-to-end carbon program with a goal of making it easier for growers to increase productivity, improve sustainability and boost profitability. The program is designed to increase grower margins per acre and generate verifiable carbon credits that can be monetized.

This revolutionary program begins by targeting 100,000 acres of pilot farmland across North America in 2021 followed by a full roll-out, then a launch in Australia and South America. We are designing scalable programs that facilitate the use of climate smart inputs and sustainable practices to reduce GHG emissions, improve soil carbon sequestration, and measure the positive financial, productivity and environmental impacts.

NUTRIEN’S ROLE

Nutrien is uniquely positioned to be a leader due to our trusted relationship with growers, our focus on full acre solutions and our leading digital capabilities. Leveraging our digital crop planning capabilities, we build customized field plans that target agronomic practices and product recommendations designed to generate positive carbon outcomes and drive yield efficiency.

Nutrien’s comprehensive Carbon Program is expected to deliver benefits to growers and the environment while engaging a broad base of value-chain partners and stakeholders. We believe this will foster further adoption of sustainable agricultural practices that drive positive environmental outcomes and preserve security of global food production to feed the world’s growing population.

The active mining face presents the single largest safety risk to our underground workers and we are implementing tele-remote and autonomous operations to remove them from that risk.

We are empowering safety and value-driven decisions with real-time information supported by our digital capabilities, advanced process controls and smart planning to optimize our production process, increase production capabilities and lower production costs per tonne.

We are also extending asset life by monitoring and predicting key equipment parameters and performance.

The Next Generation Potash program is also expected to reduce the environmental footprint of our potash operations. The self-generation of power and thermal energy will reduce CO₂ intensity and lower our cash production costs per tonne. At the same time, the use of advanced process control systems are expected to reduce natural gas consumption and leach water usage in the milling process.

In addition, by using more of our existing available capacity, we will also reduce the per tonne consumption of energy and materials.

As we enhance and improve our potash operations, Nutrien is committed to a fair transition into autonomous mining operations by evaluating the required transformation of our workforce.

 REDUCING GHG

 EMISSIONS

For Nutrien, nitrogen production represents more than three-quarters of our total scope 1 & 2 emissions, which is why we are focused on reducing that footprint.

We have several projects underway that are expected to reduce the carbon footprint of our nitrogen operations. Construction began on abatement projects totaling $50 million, that are expected to reduce CO₂ equivalent emissions by over 1 million tonnes by 2023, equating to an approximate 7 percent reduction in our company wide scope 1 & 2 emissions. Further, we have several other projects that will reduce our overall emission intensity.

 BLUE/LOW CARBON

 AMMONIA

Nutrien is one of the world’s largest blue/low carbon ammonia producers. We capture CO₂ at our Redwater and Geismar facilities, and sell it for industrial applications or permanently store it in large-scale carbon capture facilities.

We also produce low carbon ammonia at our Joffre plant which uses hydrogen as a feedstock. This process significantly lowers the GHG intensity per tonne of ammonia compared to a typical steam methane reforming process.

In 2020, we captured approximately 1 million tonnes of CO₂ equivalent with the capability to produce approximately 1 million tonnes of blue/low carbon ammonia.

 ENVIRONMENTALLY

 SMART PRODUCTS

Nutrien produces and sells a wide-portfolio of products that minimize nitrogen loss, maximizes nitrogen utilization and reduces emissions.

We produce and sell over 400,000 tonnes of Environmentally Smart Nitrogen (“ESN”) annually. This urea granule is contained within a flexible polymer coating which reduces nitrogen loss, and releases nitrogen at a rate matched with crop uptake.

We also produce and sell approximately 600,000 tonnes of diesel exhaust fluid (“DEF”) which is a urea liquid solution that, when combined with diesel in larger vehicles and machinery, can improve fuel efficiency and reduce emissions.

Transporting ammonia then extracting its hydrogen can be a lower-risk and lower carbon alternative to transporting hydrogen, which can then be used in applications such as fuel cells. We are pursuing opportunities to leverage our low-cost ammonia production profile and strategically advantaged assets to be at the forefront of this developing market.

2020 MARKET CONDITIONS

Key crop prices surged in the second half of 2020 driven by very tight global supply and demand fundamentals.

Growing conditions in North America improved considerably in 2020 relative to the 2019 season, however, the US had prevented planting of about 10 million acres, which is approximately twice the historic average. In addition, the Derecho windstorm in the MidWest resulted in significantly lower than expected production of US corn and soybeans. These factors and relatively low crop prices resulted in lower than expected crop input spending during the summer period.

The combination of lower than expected production and the record pace of Chinese grain and oilseed imports in 2020 resulted in US ending stocks for corn and soybeans projected to be at their lowest levels in six years, according to the USDA. This caused corn and soybean prices to rally in late 2020 and early 2021 to their highest levels in at least seven years.

Following several seasons of drought, Australian growers received much needed precipitation in 2020, resulting in a 76 percent increase in winter crop production. The increased planted area supported increased demand for crop inputs. While in Brazil, growers responded to strong crop prices by increasing soybean planting in the fall of 2020, despite less than ideal weather.

MARKET OUTLOOK

We expect a rebound in US planted crop acreage will support increased crop input demand in 2021.

Assuming normal planting conditions in the US in the spring of 2021 and continued favorable crop margins, we expect planted acreage of major US crops will increase by approximately 10 million acres. US farmers were able to make excellent progress on fertilizer applications in the fall of 2020, and with the expected increase in acreage and strong crop prices, we expect growth in crop input expenditures in 2021.

The outlook for Australia is also strong as precipitation remained good in major Eastern growing regions. Growers benefited from higher global crop prices for their 2020 crop and, weather permitting, the outlook for crop input demand remains strong for 2021. In Brazil, growers are harvesting what is expected to be a record soybean crop, despite late planting and dry weather. We anticipate strong planted acreage and crop input demand in 2021, although there is some risk to the upcoming Safrinha corn plantings given the slower than usual soybean crop process.