Pure Fuel Costs in Value of Manufacturing

• Pure gasoline costs in our price of manufacturing elevated within the fourth quarter and full 12 months of 2022 because of greater North American gasoline index costs and elevated gasoline prices in Trinidad, the place our gasoline costs are linked to ammonia benchmark costs.

Phosphate

• Adjusted EBITDA elevated for the total 12 months of 2022 primarily attributable to greater web realized promoting costs, which greater than offset greater uncooked materials prices and decrease gross sales volumes. Adjusted EBITDA within the fourth quarter decreased attributable to decrease gross sales volumes because of unplanned plant outages. Included with bills for the total 12 months of 2022, we acknowledged a $780 million non-cash impairment of belongings reversal attributable to a extra favorable outlook for phosphate margins, which is deducted from adjusted EBITDA.
• Gross sales volumes decreased within the fourth quarter and full 12 months of 2022 attributable to decrease manufacturing volumes and a condensed North American spring utility season.
• Internet realized promoting worth elevated for the total 12 months of 2022 aligned with the rise in world benchmark costs. Within the fourth quarter of 2022, greater industrial and feed web realized promoting costs greater than offset the decline in fertilizer web realized promoting costs.
• Value of products bought per tonne elevated within the fourth quarter and full 12 months of 2022 primarily attributable to considerably greater sulfur and ammonia enter prices, together with decrease manufacturing volumes.

Company and Others

• Basic and administrative bills had been greater within the full 12 months of 2022 in comparison with the identical interval in 2021 primarily attributable to elevated depreciation and amortization expense, greater donations and better data technology-related bills.
• Share-based compensation (restoration) expense was a restoration within the fourth quarter of 2022 attributable to a lower in share worth and an expense for the comparative interval in 2021 attributable to a rise in share worth. We had a decrease expense for the total 12 months of 2022 in comparison with 2021 primarily attributable to a decrease worth of share-based awards excellent.
• Different bills had been decrease within the fourth quarter of 2022 in comparison with the identical interval in 2021 primarily attributable to web international alternate beneficial properties in 2022 in comparison with web international alternate losses in 2021 and decrease bills associated to asset retirement obligations and accrued environmental prices for our non-operating websites from the modifications in our price and low cost price estimates. This was partially offset by an worker particular recognition award expense in 2022. Different bills had been decrease within the full 12 months of 2022 in comparison with the identical interval in 2021 primarily attributable to decrease COVID-19 associated bills, the absence of cloud computing associated bills from our change in accounting coverage in 2021 and decrease bills associated to asset retirement obligations and accrued environmental prices for our non-operating websites from the modifications in our price and low cost price estimates. This was partially offset by greater data expertise challenge feasibility prices and an worker particular recognition award expense in 2022.

Eliminations

Eliminations should not a part of the Company and Others phase. Eliminations of gross margin between working segments had been $(28) million for the total 12 months of 2022 in comparison with $(89) million in the identical interval of 2021. We had important eliminations in 2021 attributable to higher-margin inventories held by our Retail phase as world commodity benchmark costs elevated. The magnitude of the rise in costs was decrease in 2022.

Finance Prices, Revenue Taxes and Different Complete Revenue (Loss)

• Finance prices had been decrease within the fourth quarter and full 12 months of 2022 in comparison with the identical durations in 2021 primarily because of the absence of a lack of $142 million on early extinguishment of a portion of our long-term debt within the comparative durations. Within the full 12 months of 2022 short-term curiosity was greater attributable to elevated rates of interest and a better common stability in comparison with 2021, which greater than offset a lower in long-term curiosity attributable to a decrease common excellent stability in 2022.
• Revenue tax expense was greater within the full 12 months of 2022 because of greater earnings in 2022 in comparison with the identical interval in 2021.
• Different complete earnings (loss) is primarily pushed by modifications in our funding in Sinofert Holdings Ltd (“Sinofert”), the foreign money translation of our international operations and web actuarial beneficial properties on outlined profit plans. Within the fourth quarter of 2022, we had a good worth achieve on our funding in Sinofert attributable to share worth will increase, in comparison with a good worth loss attributable to share worth decreases in 2021. As well as, we had greater beneficial properties on international foreign money translation of our Retail international operations, primarily in Australia and Brazil, in comparison with the identical interval in 2021, as these currencies appreciated relative to the US greenback. These elements had been partially offset by a decrease web actuarial achieve on our outlined profit pension plans within the fourth quarter of 2022 in comparison with the identical interval in 2021. For the total 12 months of 2022, we had honest worth losses on our funding in Sinofert attributable to share worth decreases, in comparison with honest worth beneficial properties attributable to share worth will increase for a similar interval in 2021. As well as, we had greater losses on international foreign money translation of our Retail international operations, primarily in Canada, in comparison with the identical interval in 2021, as this foreign money depreciated relative to the US greenback, partially offset by greater beneficial properties in Brazil, as this foreign money appreciated relative to the US greenback.

Ahead-Wanting Statements

Sure statements and different data included on this doc, together with throughout the “Market Outlook and Steering” part, represent “forward-looking data” or “forward-looking statements” (collectively, “forward-looking statements”) below relevant securities legal guidelines (such statements are sometimes accompanied by phrases corresponding to “anticipate”, “forecast”, “count on”, “imagine”, “could”, “will”, “ought to”, “estimate”, “intend” or different related phrases). All statements on this doc, apart from these regarding historic data or present situations, are forward-looking statements, together with, however not restricted to: Nutrien’s enterprise methods, plans, prospects and alternatives; Nutrien’s 2023 full-year steerage, together with expectations concerning our adjusted web earnings per share and adjusted EBITDA (consolidated and by phase); expectations concerning our development and capital allocation intentions and techniques; our development of strategic development initiatives; capital spending expectations for 2023; expectations concerning efficiency of our working segments in 2023; our intention to extend potash manufacturing functionality to 18 million tonnes by 2026; our working phase market outlooks and our expectations for market situations and fundamentals in 2023 and past, and the anticipated provide and demand for our services, anticipated market and business situations with respect to crop nutrient utility charges, planted acres, grower crop funding, crop combine, manufacturing bills, shipments, consumption, costs and the influence of seasonality, import and export volumes, financial sanctions and the battle between Ukraine and Russia; Nutrien’s capacity to develop modern and sustainable options; the negotiation of gross sales contracts; acquisitions and divestitures and the anticipated advantages thereof; and expectations in reference to our capacity to ship long-term returns to shareholders. These forward-looking statements are topic to plenty of assumptions, dangers and uncertainties, a lot of that are past our management, which may trigger precise outcomes to vary materially from such forward-looking statements. As such, undue reliance shouldn’t be positioned on these forward-looking statements.

All the forward-looking statements are certified by the assumptions which might be said or inherent in such forward-looking statements, together with the assumptions referred to beneath and elsewhere on this doc. Though we imagine that these assumptions are affordable, having regard to our expertise and our notion of historic tendencies, this checklist isn’t exhaustive of the elements which will have an effect on any of the forward-looking statements and the reader mustn’t place undue reliance on these assumptions and such forward-looking statements. Present situations, financial and in any other case, render assumptions, though affordable when made, topic to larger uncertainty. The extra key assumptions which have been made embrace, amongst different issues, assumptions with respect to our capacity to efficiently full, combine and notice the anticipated advantages of our already accomplished and future acquisitions and divestitures, and that we can implement our requirements, controls, procedures and insurance policies in respect of any acquired companies and to appreciate the anticipated synergies on the anticipated timeline or in any respect; that future enterprise, regulatory and business situations can be throughout the parameters anticipated by us, together with with respect to costs, bills, margins, demand, provide, product availability, shipments, consumption, provider agreements, availability and price of labor and curiosity, alternate and efficient tax charges; assumptions with respect to world financial situations and the accuracy of our market outlook expectations for 2023 and sooner or later; assumptions with respect to our intention to finish share repurchases below our share repurchase program, together with TSX approval and the funding of such share repurchases, current and future market situations, together with with respect to the worth of our widespread shares, and compliance with respect to relevant limitations below securities legal guidelines and laws and inventory alternate insurance policies; our expectations concerning the impacts, direct and oblique, of the COVID-19 pandemic on our enterprise, clients, enterprise companions, staff, provide chain, different stakeholders and the general world financial system; our expectations concerning the impacts, direct and oblique, of the battle between Ukraine and Russia on, amongst different issues, world provide and demand, vitality and commodity costs, world rates of interest, provide chains and the worldwide macroeconomic atmosphere, together with inflation; the adequacy of our money generated from operations and our capacity to entry our credit score services or capital markets for added sources of financing; our expectations concerning the influence of sure elements on the carrying quantity of goodwill related to our Retail – North America group of CGUs; our capacity to determine appropriate candidates for acquisitions and divestitures and negotiate acceptable phrases; our capacity to keep up funding grade rankings and obtain our efficiency targets; our capacity to efficiently negotiate gross sales contracts; and our capacity to efficiently implement new initiatives and packages.

Occasions or circumstances that would trigger precise outcomes to vary materially from these within the forward-looking statements embrace, however should not restricted to: basic world financial, market and enterprise situations; failure to finish introduced and future acquisitions or divestitures in any respect or on the anticipated phrases and throughout the anticipated timeline; seasonality; local weather change and climate situations, together with impacts from regional flooding and/or drought situations; crop planted acreage, yield and costs; the availability and demand and worth ranges for our merchandise; governmental and regulatory necessities and actions by governmental authorities, together with modifications in authorities coverage (together with tariffs, commerce restrictions and local weather change initiatives), authorities possession necessities, modifications in environmental, tax and different legal guidelines or laws and the interpretation thereof; political dangers, together with civil unrest, actions by armed teams or battle and malicious acts together with terrorism; the incidence of a serious environmental or security incident; innovation and cybersecurity dangers associated to our techniques, together with our prices of addressing or mitigating such dangers; counterparty and sovereign danger; delays in completion of turnarounds at our main services; interruptions of or constraints in availability of key inputs, together with pure gasoline and sulfur; any important impairment of the carrying quantity of sure belongings; dangers associated to reputational loss; sure issues which will come up in our mining processes; the power to draw, have interaction and retain expert staff and strikes or different types of work stoppages; the COVID-19 pandemic, together with variants of the COVID-19 virus and the effectivity and distribution of vaccines, and its ensuing results on financial situations, restrictions imposed by public well being authorities or governments, together with government-imposed vaccine mandates, fiscal and financial responses by governments and monetary establishments to market situations and disruptions to world provide chains; the battle between Ukraine and Russia and its potential influence on, amongst different issues, world market situations and provide and demand, vitality and commodity costs, rates of interest, provide chains and the worldwide financial system usually; our capacity to execute on our methods associated to environmental, social and governance issues, and obtain associated expectations, targets and commitments; the danger that rising rates of interest and/or deteriorated enterprise working outcomes could consequence within the impairment of belongings or goodwill attributed to sure of our money producing models; and different danger elements detailed occasionally in Nutrien studies filed with the Canadian securities regulators and the SEC in the US.

The aim of our adjusted web earnings per share and adjusted EBITDA (consolidated and by phase) steerage ranges are to help readers in understanding our anticipated and focused monetary outcomes, and this data is probably not applicable for different functions.

The forward-looking statements on this doc are made as of the date hereof and Nutrien disclaims any intention or obligation to replace or revise any forward-looking statements on this doc because of new data or future occasions, besides as could also be required below relevant Canadian securities laws or relevant US federal securities legal guidelines.

Phrases and Definitions

For the definitions of sure monetary and non-financial phrases used on this doc, in addition to a listing of abbreviated firm names and sources, see the “Phrases & Definitions” part of our 2021 Annual Report. All references to per share quantities pertain to diluted web earnings (loss) per share, “n/m” signifies data that isn’t significant, and all monetary quantities are said in thousands and thousands of US {dollars}, until in any other case famous.

About Nutrien

Nutrien is the world’s largest supplier of crop inputs and companies, serving to to soundly and sustainably feed a rising world. We function a world-class community of manufacturing, distribution and retail services that positions us to effectively serve the wants of growers. We concentrate on creating long-term worth for all stakeholders by advancing our key environmental, social and governance priorities.

Extra details about Nutrien might be discovered at www.nutrien.com .

Chosen monetary information for obtain might be present in our information device at www.nutrien.com/traders/interactive-datatool

Such information isn’t included by reference herein.

Nutrien will host a Convention Name on Thursday, February 16, 2023 at 10:00 a.m. Jap Time.

Phone Convention dial-in numbers:

• From Canada and the US 1-888-886-7786
• Worldwide 1-416-764-8683
• No entry code required. Please dial in quarter-hour prior to make sure you are positioned on the decision in a well timed method.

Dwell Audio Webcast: Go to https://www.nutrien.com/traders/occasions/2022-q4-earnings-conference-call

Appendix A – Chosen Further Monetary Knowledge

Appendix B – Non-IFRS Monetary Measures

We use each IFRS measures and sure non-IFRS monetary measures to evaluate efficiency. Non-IFRS monetary measures are monetary measures disclosed by an organization that (a) depict historic or anticipated future monetary efficiency, monetary place or money movement of an organization, (b) with respect to their composition, exclude quantities which might be included in, or embrace quantities which might be excluded from, the composition of essentially the most straight comparable monetary measure disclosed within the major monetary statements of the corporate, (c) should not disclosed within the monetary statements of the corporate and (d) should not a ratio, fraction, proportion or related illustration. Non-IFRS ratios are monetary measures disclosed by an organization which might be within the type of a ratio, fraction, proportion or related illustration that has a non-IFRS monetary measure as a number of of its elements, and that aren’t disclosed within the monetary statements of the corporate.

These non-IFRS monetary measures and non-IFRS ratios should not standardized monetary measures below IFRS and, subsequently, are unlikely to be akin to related monetary measures introduced by different firms. Administration believes these non-IFRS monetary measures and non-IFRS ratios present clear and helpful supplemental data to assist traders consider our monetary efficiency, monetary situation and liquidity utilizing the identical measures as administration. These non-IFRS monetary measures and non-IFRS ratios shouldn’t be thought-about as an alternative choice to, or superior to, measures of economic efficiency ready in accordance with IFRS.

The next part outlines our non-IFRS monetary measures and non-IFRS ratios, their compositions, and why administration makes use of every measure. It additionally consists of reconciliations to essentially the most straight comparable IFRS measures. Besides as in any other case described herein, our non-IFRS monetary measures and non-IFRS ratios are calculated on a constant foundation from interval to interval and are adjusted for particular objects in every interval, as relevant. As extra non-recurring or uncommon objects come up sooner or later, we usually exclude these things in our calculations.

Adjusted EBITDA (Consolidated)

Most straight comparable IFRS monetary measure: Internet earnings (loss).

Definition: Adjusted EBITDA is calculated as web earnings (loss) earlier than finance prices, earnings taxes, depreciation and amortization, share-based compensation and sure international alternate achieve/loss (web of associated derivatives). We additionally alter this measure for the next different earnings and bills which might be excluded when administration evaluates the efficiency of our day-to-day operations: integration and restructuring associated prices, impairment or reversal of impairment of belongings, COVID-19 associated bills, achieve or loss on disposal of sure companies and investments, and IFRS adoption transition changes.

Why we use the measure and why it’s helpful to traders: It isn’t impacted by long-term funding and financing choices, however somewhat focuses on the efficiency of our day-to-day operations. It gives a measure of our capacity to service debt and to satisfy different cost obligations, and as a part of worker remuneration calculations.

Adjusted Internet Earnings and Adjusted Internet Earnings Per Share

Most straight comparable IFRS monetary measure: Internet earnings (loss) and web earnings (loss) per share.

Definition: Adjusted web earnings and associated per share data are calculated as web earnings (loss) earlier than share-based compensation and sure international alternate achieve/loss (web of associated derivatives), web of tax. We additionally alter this measure for the next different earnings and bills (web of tax) which might be excluded when administration evaluates the efficiency of our day-to-day operations: sure integration and restructuring associated prices, impairment or reversal of impairment of belongings, COVID-19 associated bills (together with these recorded below finance prices), achieve or loss on disposal of sure companies and investments, IFRS adoption transition changes, and achieve/loss on early extinguishment of debt or on settlement of derivatives attributable to discontinuance of hedge accounting. In 2022, we amended our calculation of adjusted web earnings to regulate for a achieve on settlement of a by-product attributable to discontinued hedge accounting. There was no related achieve or loss within the comparative interval. We usually apply the annual forecasted efficient tax price to our changes in the course of the 12 months and, at year-end, we apply the precise efficient tax price. If the efficient tax price is considerably totally different from our forecasted efficient tax price attributable to changes or discrete tax impacts, we apply a tax price that excludes these objects. For materials changes, we apply a tax price particular to the adjustment.

Why we use the measure and why it’s helpful to traders: Focuses on the efficiency of our day-to-day operations and is used as a part of worker remuneration calculations.

Adjusted EBITDA (Consolidated) and Adjusted Internet Earnings Per Share Steering

Adjusted EBITDA and adjusted web earnings per share steerage are forward-looking non-IFRS monetary measures. We don’t present a reconciliation of such forward-looking measures to essentially the most straight comparable monetary measures calculated and introduced in accordance with IFRS as a result of a significant or correct calculation of reconciling objects and the knowledge isn’t accessible with out unreasonable effort attributable to unknown variables, together with the timing and quantity of sure reconciling objects, and the uncertainty associated to future outcomes. These unknown variables could embrace unpredictable transactions of great worth which may be inherently tough to find out with out unreasonable efforts. The possible significance of such unavailable data, which might be materials to future outcomes, can’t be addressed. Steering for adjusted EBITDA and adjusted web earnings per share excludes sure objects corresponding to, however not restricted to, the impacts of share-based compensation, sure international alternate achieve/loss (web of associated derivatives), integration and restructuring associated prices, impairment or reversal of impairment of belongings, COVID-19 associated bills (together with these recorded below finance prices), achieve or loss on disposal of sure companies and investments, IFRS adoption transition changes, and achieve/loss on early extinguishment of debt or on settlement of derivatives attributable to discontinuance of hedge accounting.

Development Capital

Most straight comparable IFRS monetary measure: Money utilized in investing actions.

Definition: Money utilized in investing actions associated to development initiatives consisting of investing capital expenditures, that are a part of capital expenditures, plus enterprise acquisitions, web of money acquired per the unaudited condensed consolidated statements of money flows.

Why we use the measure and why it’s helpful to traders: To show how we allocate our capital to our varied priorities together with development and enlargement tasks and acquisitions.

Gross Margin Excluding Depreciation and Amortization Per Tonne – Manufactured

Most straight comparable IFRS monetary measure: Gross margin.

Definition: Gross margin per tonne much less depreciation and amortization per tonne for manufactured merchandise. Reconciliations are offered within the “Section Outcomes” part.

Why we use the measure and why it’s helpful to traders: Focuses on the efficiency of our day-to-day operations, which excludes the results of things that primarily mirror the influence of long-term funding and financing choices.

Potash Controllable Money Value of Product Manufactured (“COPM”) Per Tonne

Most straight comparable IFRS monetary measure: Value of products bought (“COGS”) for the Potash phase.

Definition: Complete Potash COGS excluding depreciation and amortization expense included in COPM, royalties, pure gasoline prices and carbon taxes, change in stock, and different changes, divided by potash manufacturing tonnes.

Why we use the measure and why it’s helpful to traders: To evaluate operational efficiency. In 2022, we changed Potash money COPM with this new monetary measure. Potash controllable money COPM excludes the results of manufacturing from different durations and the impacts of our long-term funding choices. Potash controllable money COPM additionally excludes royalties and pure gasoline prices and carbon taxes, which administration doesn’t contemplate controllable, as they’re primarily pushed by regulatory and market situations.

Ammonia Controllable Money COPM Per Tonne

Most straight comparable IFRS monetary measure: Complete manufactured COGS for the Nitrogen phase.

Definition: Complete Nitrogen COGS excluding depreciation and amortization expense included in COGS, money COGS for merchandise apart from ammonia, different changes, and pure gasoline and steam prices, divided by web ammonia manufacturing tonnes.

Why we use the measure and why it’s helpful to traders: To evaluate operational efficiency. Ammonia controllable money COPM excludes the results of manufacturing from different durations, the prices of pure gasoline and steam, and long-term funding choices, supporting a concentrate on the efficiency of our day-to-day operations.

Retail Adjusted Common Working Capital to Gross sales and Retail Adjusted Common Working Capital to Gross sales Excluding Nutrien Monetary

Definition: Retail adjusted common working capital divided by Retail adjusted gross sales for the final 4 rolling quarters. We exclude in our calculations the gross sales and dealing capital of sure acquisitions in the course of the first 12 months following the acquisition. We additionally have a look at this metric excluding Nutrien Monetary income and dealing capital.

Why we use the measure and why it’s helpful to traders: To guage operational effectivity. A decrease or greater proportion represents elevated or decreased effectivity, respectively. The metric excluding Nutrien Monetary exhibits the influence that the working capital of Nutrien Monetary has on the ratio.