Nutrien Delivers Record First Half Earnings and Expects Strong Second Half

Nutrien is accelerating growth initiatives and announces intention to complete its existing 10 percent share repurchase program in 2022

All amounts are in US dollars except as otherwise noted

Nutrien Ltd. (TSX and NYSE: NTR) announced today its second quarter 2022 results, with net earnings of $3.6 billion ($6.51 diluted net earnings per share), which includes a non-cash impairment reversal of $450 million relating to our Phosphate operations. Second quarter 2022 adjusted net earnings per share¹ were $5.85 and adjusted EBITDA¹ was $5.0 billion.

"Nutrien delivered record earnings in the first half of 2022 due to the strength of market fundamentals, strong operating performance, the advantaged position of our global production assets and the excellent results of Retail. We generated strong results across our integrated business and demonstrated our unmatched capability to efficiently supply our customers with the products they need to help sustainably feed a growing world," commented Ken Seitz, Nutrien's Interim President and CEO.

"We expect supply challenges across global energy, agriculture and fertilizer markets to persist well beyond 2022. The strength of our projected cash flow provides an opportunity to accelerate high-return strategic growth initiatives and return significant capital to shareholders. We intend on completing our 10 percent share repurchase program in 2022, increasing the total amount of capital returned to shareholders to approximately $6 billion during the year," added Mr. Seitz.

Highlights:

• Nutrien generated net earnings of $5.0 billion and adjusted EBITDA¹ of $7.6 billion in the first half of 2022 due to higher realized prices and strong Retail performance, more than offsetting a reduction in fertilizer sales volumes. As a result, cash provided by operating activities increased to $2.5 billion in the first half of 2022.
• Nutrien revised full-year 2022 adjusted EBITDA guidance¹ and adjusted net earnings per share guidance¹ to $14.0 to $15.5 billion and $15.80 to $17.80 per share, respectively. Adjusted net earnings per share guidance includes our plans to allocate approximately $5 billion to share repurchases in 2022.
• Nutrien Ag Solutions ("Retail") delivered record adjusted EBITDA in the second quarter and the first half of 2022. First-half adjusted EBITDA was up 38 percent year-over-year as a result of strong sales and gross margin growth, due to supportive market conditions in key regions where we operate. Retail cash operating coverage ratio¹ improved to 54 percent compared to 60 percent for the same period in 2021 driven by higher margins.
• Potash adjusted EBITDA in the second quarter and the first half of 2022 increased compared to the prior year due to higher net realized selling prices and strong offshore sales volumes. North American sales volumes were lower than the same period last year due to a compressed application season.
• Nitrogen second quarter and first half adjusted EBITDA increased compared to the prior year due to higher net realized selling prices that more than offset higher natural gas costs and lower sales volumes.
• In the second quarter of 2022, we recognized a non-cash impairment reversal of $450 million associated with our Phosphate operations due to a more favorable outlook for phosphate margins.
• Nutrien repurchased approximately 22 million shares year-to-date as of August 2, 2022, under our share repurchase programs, for a total of approximately $1.8 billion.
• On May 18, 2022, Nutrien announced it is evaluating its existing site at Geismar, Louisiana to build the world's largest clean ammonia facility. The project would leverage low-cost natural gas, tidewater access to world markets, and high-quality carbon capture and sequestration infrastructure to serve growing demand in agricultural, industrial and emerging energy markets.
• On June 9, 2022, Nutrien announced its intention to increase potash production capability to 18 million tonnes by 2025 in response to the uncertainty of potash supply from Eastern Europe being able to meet global demand.
• Nutrien announced agreements to acquire Brazilian ag retail companies Casa do Adubo S.A. and Marca Agro Mercantil. These acquisitions support Nutrien's Retail growth strategy in Brazil and upon completion of the acquisitions, we expect to surpass our stated target of $100 million annual adjusted EBITDA in Brazil by 2023.

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

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 3, 2022. The Board of Directors ("Board") of Nutrien carries out its responsibility for review of this disclosure principally through its audit committee, comprised exclusively 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 17, 2022 ("2021 Annual Report"), which includes our annual audited consolidated financial statements and MD&A, and our annual information form dated February 17, 2022 ("2021 Annual Information Form"), each for the year ended December 31, 2021, 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 2021 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, 2022 ("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 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

• Global grain and oilseed stocks-to-use ratios remain well below historical average levels, which we believe will continue to be supportive for crop prices. Prices for key crops such as corn, soybeans and wheat are up 25 to 35 percent compared to the 10-year average, providing strong incentive for growers to increase production.
• The US Department of Agriculture (USDA) projects that Ukrainian wheat and corn production will be down by more than 40 percent and combined Ukrainian exports of corn, wheat and barley will be down by approximately 60 percent year-over-year in 2022/23. While diplomatic efforts to restore exports from Ukrainian ports has progressed, the overall reduction in Ukrainian production in 2022 is expected to continue to constrain supplies for the forthcoming year.
• US crop conditions started the 2022 growing season favorably, however, recent hot and dry weather has accelerated crop development and could limit yield potential. In Western Canada, growing conditions have improved from the severe 2021 drought. We expect the combination of robust grower economics and favorable growing conditions to support demand for crop nutritional products, fungicides and insecticides in the third quarter of 2022.
• Prospective Brazilian grower margins remain historically high and analysts expect a 2 to 4 percent increase in soybean planted area in the 2022 planting season. While we expect this to support overall crop input demand, fertilizer inventories have been slow to move from port to inland positions and we expect import demand will resurface as these inventories move inland for Brazil's spring planting season in the second half of 2022.

Crop Nutrient Markets

• Restricted supplies of potash from Russia and Belarus kept potash prices at historically high levels through the first half of 2022. Potash shipments from Russia and Belarus were estimated to be down approximately 25 and 50 percent respectively in the first half of 2022, with the majority of Belarus exports occurring in the first quarter. We have narrowed our global potash shipment forecast to between 61 and 64 million tonnes in 2022 and continue to expect demand to be constrained by restrictions on exports from Russia and Belarus.
• A dramatic increase in European natural gas prices has once again led to reduced nitrogen operating rates in the region. Tightening European ammonia supplies and significantly reduced Russian ammonia exports from the Black Sea are pressuring global ammonia availability. We expect strong seasonal nitrogen demand in the second half of 2022 following a period of delayed purchases due to benchmark price volatility.
• The Chinese government continues to impose export restrictions on urea and phosphate fertilizers that are expected to limit its export volumes in the second half of 2022.

Financial Guidance

• Nutrien revised full-year 2022 adjusted EBITDA guidance¹ and full-year 2022 adjusted net earnings per share guidance¹ primarily due to lower expected Nitrogen earnings as a result of lower nitrogen benchmark pricing and higher natural gas costs. Retail adjusted EBITDA guidance was increased to reflect strong performance in the second quarter. Adjusted net earnings per share guidance includes our plans to allocate approximately $5 billion to share repurchases in 2022.
• Nutrien lowered potash and nitrogen sales volume guidance to reflect the impact of lower application in North America this spring.

All guidance numbers, including those noted above are outlined in the table below. Refer to page 53 of Nutrien's 2021 Annual Report for related assumptions and sensitivities.

	Guidance Ranges1 as of
	Aug 3, 2022				May 2, 2022
(billions of US dollars, except as otherwise noted)	Low		High		Low		High
Adjusted net earnings per share 2	15.80		17.80		16.20		18.70
Adjusted EBITDA 2	14.0		15.5		14.5		16.5
Retail adjusted EBITDA	2.1		2.2		1.8		1.9
Potash adjusted EBITDA	7.6		8.2		7.5		8.3
Nitrogen adjusted EBITDA	4.0		4.7		5.0		5.8
Phosphate adjusted EBITDA (in US millions)	750		850		800		900
Potash sales tonnes (millions) 3	14.3		14.9		14.5		15.1
Nitrogen sales tonnes (millions) 3	10.6		11.0		10.7		11.1
Depreciation and amortization	2.0		2.1		2.0		2.1
Effective tax rate on adjusted earnings (%)	25.5		26.5		25.5		26.5
Sustaining capital expenditures 4	1.3		1.4		1.2		1.3
1 See the "Forward-Looking Statements" section.
2 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.
3 Manufactured product only. Nitrogen sales tonnes excludes ESN® products.
4 This is a supplementary financial measure. See the "Other Financial Measures" section.

Consolidated Results

		Three Months Ended June 30						Six Months Ended June 30
(millions of US dollars, except as otherwise noted)		2022		2021		% Change		2022		2021		% Change
Sales		14,506		9,763		49		22,163		14,421		54
Freight, transportation and distribution		221		222		?		424		433		(2)
Cost of goods sold		8,286		6,659		24		12,483		9,950		25
Gross margin		5,999		2,882		108		9,256		4,038		129
Expenses		1,054		1,263		(17)		2,312		2,141		8
Net earnings		3,601		1,113		224		4,986		1,246		300
Adjusted EBITDA 1		4,993		2,215		125		7,608		3,021		152
Diluted net earnings per share		6.51		1.94		236		8.99		2.16		316
Adjusted net earnings per share 1		5.85		2.08		181		8.53		2.37		260
Cash provided by operating activities		2,558		1,966		30		2,496		1,814		38
Free cash flow 1		3,413		1,413		142		5,227		1,889		177
Free cash flow including changes in non-cash operating working capital 1		2,302		1,662		39		2,046		1,346		52
1 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

Net earnings and adjusted EBITDA more than doubled in the second quarter and first half of 2022 compared to the same period in 2021. This was due to higher net realized selling prices from global supply uncertainties across our nutrient businesses and strong Retail performance. In the second quarter of 2022, we recorded a non-cash impairment reversal of $450 million related to our Phosphate operations which impacted net earnings. Cash provided by operating activities increased in the second quarter and first half of 2022 compared to the same period in 2021 due primarily to higher net earnings.

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, 2022 to the results for the three and six months ended June 30, 2021, 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)		2022		2021		% Change		2022		2021		% Change		2022		2021
Sales
Crop nutrients		4,548		3,045		49		911		703		30		20		23
Crop protection products		2,983		2,666		12		805		587		37		27		22
Seed		1,269		1,216		4		283		237		19		22		19
Merchandise		280		268		4		51		45		13		18		17
Nutrien Financial		91		59		54		91		59		54		100		100
Services and other 1		310		320		(3)		258		264		(2)		83		83
Nutrien Financial elimination 1, 2		(59)		(37)		59		(59)		(37)		59		100		100
		9,422		7,537		25		2,340		1,858		26		25		25
Cost of goods sold		7,082		5,679		25
Gross margin		2,340		1,858		26
Expenses 3		1,088		938		16
Earnings before finance costs and taxes ("EBIT")		1,252		920		36
Depreciation and amortization		175		169		4
EBITDA		1,427		1,089		31
Adjustments 4		?		8		(100)
Adjusted EBITDA		1,427		1,097		30
1 Certain immaterial figures have been reclassified for the three months ended June 30, 2021.
2 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.
3 Includes selling expenses of $1,013 million (2021 - $863 million).
4 See Note 2 to the interim financial statements.

		Six Months Ended June 30
(millions of US dollars, except		Dollars						Gross Margin						Gross Margin (%)
as otherwise noted)		2022		2021		% Change		2022		2021		% Change		2022		2021
Sales
Crop nutrients		6,135		4,061		51		1,203		923		30		20		23
Crop protection products		4,370		3,751		17		1,087		763		42		25		20
Seed		1,727		1,679		3		349		306		14		20		18
Merchandise		514		498		3		92		83		11		18		17
Nutrien Financial		140		84		67		140		84		67		100		100
Services and other 1		485		485		?		402		400		1		83		82
Nutrien Financial elimination 1		(88)		(49)		80		(88)		(49)		80		100		100
		13,283		10,509		26		3,185		2,510		27		24		24
Cost of goods sold		10,098		7,999		26
Gross margin		3,185		2,510		27
Expenses 2		1,843		1,659		11
EBIT		1,342		851		58
Depreciation and amortization		344		346		(1)
EBITDA		1,686		1,197		41
Adjustments 3		(19)		9		n/m
Adjusted EBITDA		1,667		1,206		38
1 Certain immaterial figures have been reclassified for the six months ended June 30, 2021.
2 Includes selling expenses of $1,735 million (2021 - $1,530 million).
3 See Note 2 to the interim financial statements.

• Adjusted EBITDA increased in the second quarter and first half of 2022 due to higher sales and gross margins across nearly all product categories and regions where we operate. This was supported by strong agriculture fundamentals, higher selling prices and growth in proprietary products sales. Retail cash operating coverage ratio¹ improved as at June 30, 2022 to 54 percent from 60 percent in the same period in 2021 due to significantly higher gross margin.
• Crop nutrients sales and gross margin increased significantly in the second quarter and first half of 2022 due to higher selling prices. Gross margin per tonne increased in the second quarter and first half of 2022 compared to the same periods in the prior year due to strategic procurement and the timing of inventory purchases. Sales volumes decreased due to a pull forward of sales into the fourth quarter of 2021 and reduced application resulting from a delayed planting season in North America.
• Crop protection products sales and gross margin increased in the second quarter and first half of 2022 in all regions we operate due to higher prices, along with increased sales and gross margin in proprietary products. Gross margin percent increased by 5 percentage points in the second quarter and first half of 2022, supported by the reliability of our supply chain and strategic procurement in a rising price environment.
• Seed sales and gross margin increased in the second quarter and first half of 2022 due to higher pricing, an increase in proprietary seed margins and strong demand in Australia.
• Merchandise sales increased in the second quarter and first half of 2022 primarily driven by favorable market conditions for Australia animal health products, with increased flock and herd sizes along with higher fencing sales.
• Nutrien Financial sales increased in the second quarter and first half of 2022 due to higher utilization and adoption of our programs and a higher interest-bearing trade receivable balance, driven by strong commodity pricing.
• Services and other sales decreased in the second quarter due to lower fertilizer application services, and held flat through the first half of 2022, due to favorable weather conditions in Australia in the first quarter.

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

Potash

		Three Months Ended June 30
(millions of US dollars, except		Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)		2022		2021		% Change		2022		2021		% Change		2022		2021		% Change
Manufactured product
Net sales
North America		680		326		109		933		1,172		(20)		729		278		162
Offshore		1,988		491		305		2,776		2,449		13		716		200		258
		2,668		817		227		3,709		3,621		2		719		226		218
Cost of goods sold		399		317		26								107		88		22
Gross margin - total		2,269		500		354								612		138		343
Expenses 1		372		123		202		Depreciation and amortization						35		32		9
EBIT		1,897		377		403		Gross margin excluding depreciation
Depreciation and amortization		130		116		12		and amortization - manufactured 3						647		170		281
EBITDA		2,027		493		311		Potash controllable cash cost of
Adjustments 2		?		2		(100)		product manufactured 3						52		50		4
Adjusted EBITDA		2,027		495		309
1 Includes provincial mining taxes of $362 million (2021 - $107 million).
2 See Note 2 to the interim financial statements.
3 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)		2022		2021		% Change		2022		2021		% Change		2022		2021		% Change
Manufactured product
Net sales
North America		1,513		658		130		2,151		2,642		(19)		703		249		182
Offshore		3,005		770		290		4,601		4,136		11		653		186		251
		4,518		1,428		216		6,752		6,778		?		669		211		217
Cost of goods sold		704		608		16								104		90		16
Gross margin - total		3,814		820		365								565		121		367
Expenses 1		623		187		233		Depreciation and amortization						36		35		1
EBIT		3,191		633		404		Gross margin excluding depreciation
Depreciation and amortization		242		240		1		and amortization - manufactured						601		156		284
EBITDA		3,433		873		293		Potash controllable cash cost of
Adjustments 2		?		2		(100)		product manufactured						51		50		2
Adjusted EBITDA		3,433		875		292
1 Includes provincial mining taxes of $611 million (2021 - $165 million).
2 See Note 2 to the interim financial statements.

• Adjusted EBITDA increased in the second quarter and first half of 2022 due to higher net realized selling prices and strong offshore sales volumes, which more than offset lower North American sales volumes, higher royalties and provincial mining taxes.
• Sales volumes were the highest of any second quarter on record due to strong demand in offshore markets. North American sales volumes were impacted by delayed planting and a compressed application window.
• Net realized selling price increased in the second quarter and first half of 2022 due to the impact of supply constraints, in particular related to uncertainty on future supply from Russia and Belarus.
• Cost of goods sold per tonne increased in the second quarter and first half of 2022 primarily due to higher royalties resulting from increased net realized selling prices. Potash controllable cash cost of product manufactured increased slightly in the second quarter and first half of 2022 due to higher input costs driven by inflation.

Canpotex Sales by Market

(percentage of sales volumes, except as		Three Months Ended June 30				Six Months Ended June 30
otherwise noted)		2022	2021	Change		2022	2021	Change
Latin America		40	35	5		36	33	3
Other Asian markets 1		28	41	(13)		35	39	(4)
China		12	11	1		12	12	?
Other markets		11	10	1		11	11	?
India		9	3	6		6	5	1
		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)		2022		2021	% Change			2022		2021	% Change			2022		2021	% Change
Manufactured product
Net sales
Ammonia		743		346		115		643		836		(23)		1,157		416		178
Urea		601		346		74		810		819		(1)		742		421		76
Solutions, nitrates and sulfates		536		290		85		1,142		1,311		(13)		469		221		112
		1,880		982		91		2,595		2,966		(13)		724		331		119
Cost of goods sold		839		597		41								323		201		61
Gross margin - manufactured		1,041		385		170								401		130		208
Gross margin - other 1		17		31		(45)		Depreciation and amortization						54		52		2
Gross margin - total		1,058		416		154		Gross margin excluding depreciation
(Income) expenses		(43)		17		n/m		and amortization - manufactured 3						455		182		149
EBIT		1,101		399		176		Ammonia controllable cash cost of
Depreciation and amortization		139		155		(10)		product manufactured 3						58		51		14
EBITDA		1,240		554		124
Adjustments 2		?		1		(100)
Adjusted EBITDA		1,240		555		123
1 Includes other nitrogen (including ESN®) and purchased products and comprises net sales of $349 million (2021 - $197 million) less cost of goods sold of $332 million (2021 - $166 million).
2 See Note 2 to the interim financial statements.
3 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)		2022		2021	% Change			2022		2021	% Change			2022		2021	% Change
Manufactured product
Net sales
Ammonia		1,303		506		158		1,238		1,408		(12)		1,052		360		192
Urea		1,064		595		79		1,401		1,576		(11)		760		377		102
Solutions, nitrates and sulfates		975		454		115		2,221		2,385		(7)		439		190		131
		3,342		1,555		115		4,860		5,369		(9)		688		290		137
Cost of goods sold		1,479		1,037		43								305		194		57
Gross margin - manufactured		1,863		518		260								383		96		299
Gross margin - other 1		55		48		15		Depreciation and amortization						54		53		2
Gross margin - total		1,918		566		239		Gross margin excluding depreciation
Income		(55)		?		?		and amortization - manufactured						437		149		193
EBIT		1,973		566		249		Ammonia controllable cash cost of
Depreciation and amortization		262		284		(8)		product manufactured						57		51		12
EBITDA		2,235		850		163
Adjustments 2		?		5		(100)
Adjusted EBITDA		2,235		855		161
1 Includes other nitrogen (including ESN®) and purchased products and comprises net sales of $628 million (2021 - $384 million) less cost of goods sold of $573 million (2021 - $336 million).
2 See Note 2 to the interim financial statements.

• Adjusted EBITDA increased in the second quarter and first half of 2022 primarily due to higher net realized selling prices and higher earnings from equity-accounted investees, which more than offset higher natural gas costs and lower sales volumes.
• Sales volumes decreased in the second quarter and first half of 2022 due to unplanned plant outages that impacted ammonia and urea production, along with a cool and wet spring in North America that condensed the application window for direct application of ammonia and delayed application of other nitrogen products.
• Net realized selling price in the second quarter and first half of 2022 were higher due to strong benchmark prices resulting from the strength in global demand and tight supply, along with higher energy prices in key nitrogen exporting regions.
• Cost of goods sold per tonne in the second quarter and first half of 2022 increased primarily due to higher natural gas costs and higher raw material costs.

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)		2022		2021		% Change		2022		2021		% Change
Overall gas cost excluding realized derivative impact		8.54		3.86		121		7.72		3.51		120
Realized derivative impact		(0.06)		0.03		n/m		(0.04)		0.03		n/m
Overall gas cost		8.48		3.89		118		7.68		3.54		117
Average NYMEX		7.17		2.83		153		6.06		2.76		120
Average AECO		4.95		2.32		113		4.28		2.31		85

• Natural gas prices in our cost of production increased in the second quarter and first half of 2022 as a result of higher North American gas index prices and increased gas costs in Trinidad, where our gas prices are linked to ammonia benchmark prices.

Phosphate

		Three Months Ended June 30
(millions of US dollars, except		Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)		2022		2021	% Change			2022		2021	% Change			2022		2021	% Change
Manufactured product
Net sales
Fertilizer		325		232		40		366		394		(7)		888		588		51
Industrial and feed		189		119		59		190		192		(1)		996		621		60
		514		351		46		556		586		(5)		925		598		55
Cost of goods sold		352		271		30								634		463		37
Gross margin - manufactured		162		80		103								291		135		116
Gross margin - other 1		(6)		4		n/m		Depreciation and amortization						74		60		23
Gross margin - total		156		84		86		Gross margin excluding depreciation
(Income) expenses		(437)		7		n/m		and amortization - manufactured 3						365		195		87
EBIT		593		77		670
Depreciation and amortization		41		35		17
EBITDA		634		112		466
Adjustments 2		(450)		?		n/m
Adjusted EBITDA		184		112		64
1 Includes other phosphate and purchased products and comprises net sales of $76 million (2021 - $52 million) less cost of goods sold of $82 million (2021 - $48 million).
2 See Notes 2 and 3 to the interim financial statements. Includes impairment reversal of assets of $450 million (2021 - nil).
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)		2022		2021	% Change			2022		2021	% Change			2022		2021	% Change
Manufactured product
Net sales
Fertilizer		718		462		55		826		903		(9)		869		511		70
Industrial and feed		359		233		54		381		385		(1)		943		605		56
		1,077		695		55		1,207		1,288		(6)		892		539		65
Cost of goods sold		712		553		29								589		429		37
Gross margin - manufactured		365		142		157								303		110		175
Gross margin - other 1		(2)		8		n/m		Depreciation and amortization						68		57		20
Gross margin - total		363		150		142		Gross margin excluding depreciation
(Income) expenses		(428)		14		n/m		and amortization - manufactured						371		167		123
EBIT		791		136		482
Depreciation and amortization		82		73		12
EBITDA		873		209		318
Adjustments 2		(450)		?		n/m
Adjusted EBITDA		423		209		102
1 Includes other phosphate and purchased products and comprises net sales of $148 million (2021 - $93 million) less cost of goods sold of $150 million (2021 - $85 million).
2 See Notes 2 and 3 to the interim financial statements. Includes impairment reversal of assets of $450 million (2021 - nil).

• Adjusted EBITDA increased in the second quarter and first half of 2022 due to higher net realized selling prices, which more than offset higher raw material costs and lower sales volumes. As part of expenses, we recognized a $450 million non-cash impairment of assets reversal, which is deducted from adjusted EBITDA. This impairment reversal is due to a more favorable outlook for phosphate margins.
• Sales volumes decreased particularly in fertilizer, as a cool and wet spring in North America condensed the application window.
• Net realized selling price increased in the second quarter and first half of 2022 in connection with the increase in global benchmark prices. Industrial and feed net realized selling prices increased to a greater extent than fertilizer prices in the second quarter of 2022, which reflects the typical lag in industrial and feed price realizations relative to spot fertilizer prices.
• Cost of goods sold per tonne increased primarily due to significantly higher sulfur and ammonia input costs.

Corporate and Others

(millions of US dollars, except as otherwise		Three Months Ended June 30						Six Months Ended June 30
noted)		2022		2021		% Change		2022		2021		% Change
Selling expenses		(2)		(9)		(78)		(4)		(15)		(73)
General and administrative expenses		77		66		17		147		124		19
Share-based compensation (recovery) expense		(52)		38		n/m		83		61		36
Other expenses		48		83		(42)		101		111		(9)
EBIT		(71)		(178)		(60)		(327)		(281)		16
Depreciation and amortization		20		10		100		36		22		64
EBITDA		(51)		(168)		(70)		(291)		(259)		12
Adjustments 1		(7)		100		n/m		167		143		17
Adjusted EBITDA		(58)		(68)		(15)		(124)		(116)		7
1 See Note 2 to the interim financial statements.

• Share-based compensation (recovery) expense - the recovery in the second quarter of 2022 reflects a decrease in the fair value of share-based compensation due to a decrease in our share price, whereas an expense was recorded in the second quarter of 2021 as our share price increased during the period.
• Other expenses were lower in the second quarter and first half of 2022 compared to the same periods in 2021 due to the absence of cloud computing related expenses from our change in accounting policy, partially offset by higher foreign exchange losses related to our international operations.

Eliminations

Eliminations of gross margin between operating segments was a recovery of $176 million in the second quarter of 2022 compared to a recovery of $24 million in the same period of 2021. We had a significant recovery in the second quarter of 2022 due to the release of higher-margin inventories held by our Retail segment at the end of the previous quarter. Eliminations are not part of the Corporate and Others segment.

Finance Costs, Income Taxes and Other Comprehensive (Loss) Income

(millions of US dollars, except as otherwise		Three Months Ended June 30						Six Months Ended June 30
noted)		2022		2021		% Change		2022		2021		% Change
Finance costs		130		125		4		239		245		(2)
Income tax expense		1,214		381		219		1,719		406		323
Other comprehensive (loss) income		(242)		61		n/m		(66)		85		n/m

• Income tax expense was higher as a result of significantly higher earnings in the second quarter and first half of 2022 compared to the same periods in 2021.
• Other comprehensive (loss) income is primarily driven by changes in the currency translation of our foreign operations and our investment in Sinofert Holdings Ltd. ("Sinofert"). In the second quarter and first half of 2022, we had fair value losses on our investment in Sinofert due to share price decreases compared to fair value gains due to share price increases in the same periods of 2021. In the second quarter of 2022, we also had a significant loss on foreign currency translation of our Retail operations in Australia, Brazil and Canada as these currencies depreciated relative to the US dollar as at June 30, 2022 compared to March 31, 2022 levels. These losses offset the gains on translation for all three currencies in the first quarter of 2022. Whereas, we had a foreign currency translation gain in the second quarter of 2021 and net loss in the second half of 2021.

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 our 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

	Three Months Ended June 30						Six Months Ended June 30
(millions of US dollars, except as otherwise noted)	2022		2021		% Change		2022		2021		% Change
Cash provided by operating activities	2,558		1,966		30		2,496		1,814		38
Cash used in investing activities	(517)		(431)		20		(974)		(819)		19
Cash used in financing activities	(1,878)		(449)		318		(1,290)		(640)		102
Effect of exchange rate changes on cash and cash equivalents	(29)		(4)		625		(20)		(15)		33
Increase in cash and cash equivalents	134		1,082		(88)		212		340		(38)

Cash provided by operating activities	Higher cash provided by operating activities in the second quarter and first half of 2022 compared to the same periods in 2021 due to higher earnings driven by higher crop input prices from tight global supply, offset with seasonal working capital requirements.
Cash used in investing activities	Cash used in investing activities in the second quarter and first half of 2022 was higher compared to the same periods in 2021 due to higher spending in Potash to increase our production capabilities and in Nitrogen to advance our brownfield expansions, and the timing of supplier payments.
Cash used in financing activities	Cash used in financing activities in the second quarter of 2022 was higher compared to the same period in 2021 due to increased share repurchases and higher repayments of commercial paper. Cash used in financing activities in the first half of 2022 was higher compared to the same period in 2021 due to increased share repurchases, partially offset with increased commercial paper drawdowns to temporarily finance working capital requirements.

Financial Condition Review

The following balance sheet categories contained variances that were considered material:

		As at
(millions of US dollars, except as otherwise noted)		June 30, 2022		December 31, 2021		$ Change		% Change
Assets
Cash and cash equivalents		711		499		212		42
Receivables		10,171		5,366		4,805		90
Inventories		7,160		6,328		832		13
Prepaid expenses and other current assets		615		1,653		(1,038)		(63)
Property, plant and equipment		20,492		20,016		476		2
Liabilities and Equity
Short-term debt		2,403		1,560		843		54
Current portion of long-term debt		1,028		545		483		89
Payables and accrued charges		11,682		10,052		1,630		16
Long-term debt		7,056		7,521		(465)		(6)
Share capital		15,115		15,457		(342)		(2)
Retained earnings		11,563		8,192		3,371		41

• Explanations for changes in Cash and cash equivalents are in the "Sources and Uses of Cash" section.
• Receivables increased due to higher sales across all of our segments as a result of higher crop nutrient net realized selling prices consistent with higher benchmark pricing, as well as higher Retail vendor rebates receivables.
• Inventories increased due to seasonal Retail inventory build-up in North America and higher costs to produce or purchase inventory due to inflation and tight global supply. The increase was partly offset by a decrease in Retail seed inventory driven by seasonality.
• Prepaid expenses and other current assets decreased due to the drawdown of prepaid inventory (primarily seed and crop protection products) during the North American planting and application spring season.
• Property, plant and equipment increased due to an impairment reversal related to our Aurora cash generating unit in the Phosphate segment.
• Short-term debt increased due to additional commercial paper issuances as part of our seasonal working capital management.
• Payables and accrued charges increased due to a shift in timing of supplier payments, higher input costs from inflation and tight global supply and higher inventory purchases, which were partly offset by lower customer prepayments in North America as Retail customers took delivery of prepaid sales.
• Long-term debt decreased due to a reclassification to the current portion of long-term debt of our $500 million notes maturing May 2023.
• Share capital decreased from shares repurchased under our normal course issuer bids partially offset by exercise of stock options.
• Retained earnings increased as net earnings in the first half of 2022 exceeded dividends declared and share repurchases.

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, 2022.

		As at June 30, 2022
						Outstanding and Committed
(millions of US dollars)		Rate of Interest (%)		Total Facility Limit		Short-Term Debt		Long-Term Debt
Credit facilities
Unsecured revolving term credit facility		n/a		4,500		?		?
Uncommitted revolving demand facility		n/a		1,000		?		?
Other credit facilities				770
South American		1.4 - 16.3				140		160
Other		1.6 - 4.0				17		3
Commercial paper		1.4 - 2.5				2,105		?
Other short-term debt		n/a				141		?
Total						2,403		163

We also have a commercial paper program, which is limited to the availability of backup funds under the $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities.

Subsequent to June 30, 2022, and in addition to the $500 million increase in our uncommitted revolving demand facility during the second quarter of 2022, we entered into $2 billion in new non-revolving term credit facilities, all with the same principal covenants and events of default as our existing revolving term credit facilities. These new facilities are temporary to help manage normal seasonal working capital swings and are intended to be closed before year-end. As of August 2, 2022, we had approximately $3.0 billion drawn on our credit facilities and a commercial paper balance of approximately $2.1 billion.

Our long-term debt consists primarily of notes. See the "Capital Structure and Management" section of our 2021 Annual Report for information on balances, rates and maturities for our notes.

Outstanding Share Data

		As at August 2, 2022
Common shares		538,926,006
Options to purchase common shares		3,933,487

For more information on our capital structure and management, see Note 24 to our 2021 annual financial statements.

On June 7, 2022, the Financial and Consumer Affairs Authority of Saskatchewan and the Ontario Securities Commission granted Nutrien exemptive relief to allow the purchase of up to 10 percent of its "public float" of common shares through the facilities of the New York Stock Exchange and other US-based trading systems as part of Nutrien's current normal course issuer bid. Absent this exemptive relief, Nutrien's purchases under the normal course issuer bid on markets other than the TSX would be limited to not more than 5 percent of its outstanding common shares over any twelve-month period. The exemptive relief is effective until June 7, 2023 and is conditional upon purchases being made in compliance with applicable US rules and National Instrument 23-101- Trading Rules in Canada, and at a price not higher than the market price at the time of purchase. The aggregate number of common shares purchased by Nutrien over any exchange or market may not exceed 10 percent of the public float as specified in Nutrien's normal course issuer bid application approved by the TSX and announced on February 25, 2022.

Quarterly Results

(millions of US dollars, except as otherwise noted)		Q2 2022		Q1 2022		Q4 2021		Q3 2021		Q2 2021		Q1 2021		Q4 2020		Q3 2020
Sales 1		14,506		7,657		7,267		6,024		9,763		4,658		4,052		4,227
Net earnings (loss)		3,601		1,385		1,207		726		1,113		133		316		(587)
Net earnings (loss) attributable to equity holders of Nutrien		3,593		1,378		1,201		717		1,108		127		316		(587)
Net earnings (loss) per share attributable to equity holders of Nutrien
Basic		6.53		2.49		2.11		1.26		1.94		0.22		0.55		(1.03)
Diluted		6.51		2.49		2.11		1.25		1.94		0.22		0.55		(1.03)
1 Certain immaterial figures have been reclassified in the third quarter of 2020.

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. 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 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 2022, earnings were impacted by a $450 million non-cash impairment reversal of property, plant and equipment in the Phosphate segment related to higher forecasted global prices and a more favorable outlook for phosphate margins. In the fourth quarter of 2021, earnings were impacted by a $142 million loss resulting from the early extinguishment of long-term debt. In the fourth quarter of 2020, earnings were impacted by a $250 million net gain on disposal of our investment in Misr Fertilizers Production Company S.A.E.. In the third quarter of 2020, earnings were impacted by an $823 million non-cash impairment of assets primarily in the Phosphate segment as a result of lower long-term forecasted global phosphate prices.

Critical Accounting Estimates

Our significant accounting policies are disclosed in our 2021 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 49 of our 2021 Annual Report. Other than the critical accounting estimates discussed below, there were no material changes in the three or six months ended June 30, 2022 to our critical accounting estimates.

Impairment of Assets

Long-Lived Asset Impairment and Reversals

In the three months ended June 30, 2022, we revised our pricing forecasts to reflect the current macroeconomic environment. This resulted in a review of our previously impaired Phosphate cash-generating units ("CGUs"). In 2020 we recorded an impairment of assets relating to our property, plant and equipment of $545 million at our Aurora CGU, as a result of lower long-term forecasted global phosphate prices. Due to increases in our forecast during the three months ended June 30, 2022, the recoverable amount of our Aurora CGU is above its carrying amount. As a result, we recorded an impairment reversal of $450 million in the statement of earnings relating to property, plant and equipment. Refer to Note 3 to the interim financial statements.

The recoverable amount estimate is most sensitive to the following key assumptions: our internal sales and input price forecasts, which consider projections from independent third-party data sources, discount rate, and expected mine life. We used key assumptions that were based on historical data and estimates of future results from internal sources, external price benchmarks, and mineral reserve technical reports, as well as industry and market trends. For our Aurora CGU, there were no reasonably possible changes in key assumptions that would result in a substantial change in the reversal amount.

In 2017 and 2020, we recorded an impairment of assets at our White Springs CGU relating to property, plant and equipment of $250 million and $215 million respectively. The White Springs CGU has a shorter expected mine life and is therefore more sensitive to changes in short and medium-term pricing forecasts. We are continuously monitoring our key assumptions for changes that could have an impact on the recoverable amount including our internal sales and input price forecasts. Changes in these key assumptions could result in impairment reversals in future periods. The maximum impairment reversal that could result at our White Springs CGU is $340 million (full reversal, net of depreciation).

Goodwill Impairment

Operating segments have assets allocated to them that must be assessed for impairment when events or circumstances indicate there could be an impairment, or at least annually. Based on our assumptions at the time of our impairment testing, the recoverable amount of each of our CGUs or groups of CGUs was in excess of their carrying amounts. Key assumptions in our testing models may change, and changes that could reasonably be expected to occur may cause impairment or impairment reversals. Such change in assumptions could be driven by global supply and demand and other market factors and changes in regulations and other future events outside our control.

During the six months ended June 30, 2022, North American central banks continued to increase their benchmark borrowing rates and have forecasted additional near-term increases. Benchmark borrowing rates are used as the risk-free rate which, is a component of determining our discount rate for impairment testing. As a result of these increases, we revised our discount rate to 8.0 percent (previous annual impairment analysis - 7.4 percent) and this triggered an impairment test to be performed for our Retail - North America group of CGUs.

The Retail - North America group of CGUs have $6.9 billion in associated goodwill. Goodwill is more susceptible to impairment risk if business operating results or economic conditions deteriorate and we do not meet our forecasts. A reduction in the terminal growth rate, an increase in the discount rate or a decrease in forecasted EBITDA could cause impairment in the future. As at June 30, 2022 the Retail - North America group of CGUs recoverable amount exceeds its carrying amount by $0.8 billion, which is 7 percent of the carrying amount. Refer to Note 3 to the interim financial statements.

The following table indicates the percentages by which key assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount:

				Change Required for
		Value Used in Impairment		Carrying Amount to Equal
Key Assumptions		Model		Recoverable Amount
Terminal growth rate (%)		2.5		percentage point decrease		0.6
Forecasted EBITDA over forecast period (in billions of US dollars)		7.5		percent decrease		5.0
Discount rate (%)		8.0		percentage point increase		0.4

Risk Factors

Russia and Ukraine Conflict

The current conflict between Ukraine and Russia and the international response has, and may continue to have, potential wide-ranging consequences for global market volatility and economic conditions, including energy and commodity prices. Certain countries including Canada, the United States, Australia and certain European countries have imposed strict financial and trade sanctions against Russia, with Russia and Belarus imposing retaliatory sanctions of their own, which have had, and may continue to have, far-reaching effects on the global economy, energy and commodity prices, food security and crop nutrient supply and prices. The short-, medium- and long-term implications of the conflict in Ukraine are difficult to predict with any degree of certainty at this time. While Nutrien does not have operations in Ukraine or Russia, there remains uncertainty relating to the potential impact of the conflict and its effect on global food security, growers and the market outlook for crop nutrient market supply and demand fundamentals and nutrient prices, and it could have a material and adverse effect on our business, financial condition and results of operations. Depending on the extent, duration, and severity of the conflict, it may have the effect of heightening many of the other risks Nutrien is subject to and which are described in our 2021 Annual Report and 2021 Annual Information Form, including, without limitation, risks relating to market fundamentals and conditions (such as sanctions and trade flows and the impact thereof on crop nutrient supply and demand); cybersecurity threats; energy and commodity prices; inflationary pressures, interest rates and costs of capital; and supply chains and cost-effective and timely transportation.

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, 2022 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 "Financial 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 2022 full-year guidance, including expectations regarding our adjusted net earnings per share and adjusted EBITDA (consolidated and by segment); expectations regarding our growth and capital allocation intentions and strategies, including our evaluation of the Geismar, Louisiana clean ammonia facility and the anticipated benefits thereof; capital spending expectations for 2022; our intention to complete our existing share repurchase program in 2022; expectations regarding performance of our operating segments in 2022, including our operating segment market outlooks and market conditions for 2022, 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, prices and the impact of import and export volumes and economic sanctions; Nutrien's ability to develop innovative and sustainable solutions; the negotiation of sales contracts; and acquisitions and divestitures and the anticipated benefits thereof. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements.

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, 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; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability and cost of labor and interest, exchange and effective tax rates; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2022 and in the future; assumptions with respect to our ability to repurchase shares under our share repurchase program, including existing and future market conditions and compliance with respect to applicable securities laws and regulations and stock exchange policies; our expectations regarding the impacts, direct and indirect, of the COVID-19 pandemic on our business, customers, business partners, employees, supply chain, other stakeholders and the overall global economy; our expectations regarding the impacts, direct and indirect, of the conflict between Ukraine and Russia on, among other things, global supply and demand, energy and commodity prices; interest rates, supply chains and the global economy; 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 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; 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; 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 COVID-19 pandemic, including variants of the COVID-19 virus and the efficiency and distribution of vaccines, and its resulting effects on economic conditions, restrictions imposed by public health authorities or governments, including government-imposed vaccine mandates, fiscal and monetary responses by governments and financial institutions and disruptions to global supply chains; the conflict between Ukraine and Russia and its potential impact on, among other things, global market conditions and supply and demand, 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; the risk that rising interest rates and/or deteriorated business operating results may result in the impairment of goodwill attributed to certain of our cash generating units; 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 adjusted net earnings per share, adjusted EBITDA (consolidated and by segment) and sustaining capital expenditures 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 2021 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, playing a critical role in helping growers increase food production in a sustainable manner. We produce and distribute approximately 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.

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 4, 2022 at 10:00 a.m. Eastern Time.

Telephone Conference dial-in numbers:

• From Canada and the US 1-888-886-7786
• International 1-416-764-8683
• 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/2022-q2-earnings-conference-call

Appendix A - Selected Additional Financial Data

Selected Retail Measures		Three Months Ended June 30				Six Months Ended June 30
		2022		2021		2022		2021
Proprietary products margin as a percentage of product line margin (%)
Crop nutrients		22		24		20		23
Crop protection products		39		43		39		42
Seed		46		46		44		43
All products		28		29		26		27
Crop nutrients sales volumes (tonnes - thousands)
North America		3,978		5,020		5,220		6,617
International		1,017		1,132		1,950		1,935
Total		4,995		6,152		7,170		8,552
Crop nutrients selling price per tonne
North America		940		506		923		494
International		795		445		676		408
Total		911		495		856		475
Crop nutrients gross margin per tonne
North America		202		127		198		123
International		105		57		86		54
Total		182		114		168		108
Financial performance measures						2022		2021
Retail adjusted EBITDA margin (%) 1, 2						12		10
Retail adjusted EBITDA per US selling location (thousands of US dollars) 1, 2, 3						1,897		1,267
Retail adjusted average working capital to sales (%) 1, 4						15		12
Retail adjusted average working capital to sales excluding Nutrien Financial (%) 1, 4						1		?
Nutrien Financial adjusted net interest margin (%) 1, 4						7.0		6.2
Retail cash operating coverage ratio (%) 1, 4						54		60
Retail normalized comparable store sales (%) 4						(3)		1
1 Rolling four quarters ended June 30, 2022 and 2021.
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, 2022														As at Dec 31, 2021
(millions of US dollars)		Current		<31 days past due		31-90 days past due		>90 days past due		Gross Receivables		Allowance 1		Net Receivables		Net Receivables
North America		3,342		201		70		67		3,680		(35)		3,645		1,488
International		642		53		13		53		761		(2)		759		662
Nutrien Financial receivables		3,984		254		83		120		4,441		(37)		4,404		2,150
1 Bad debt expense on the above receivables for the six months ended June 30, 2022 was $8 million (2021 - $5 million) in the Retail segment.

Selected Nitrogen Measures		Three Months Ended June 30				Six Months Ended June 30
		2022		2021		2022		2021
Sales volumes (tonnes - thousands)
Fertilizer		1,453		1,825		2,546		3,130
Industrial and feed		1,142		1,141		2,314		2,239
Net sales (millions of US dollars)
Fertilizer		1,120		638		1,894		970
Industrial and feed		760		344		1,448		585
Net selling price per tonne
Fertilizer		771		350		744		310
Industrial and feed		666		302		626		261

Production Measures		Three Months Ended June 30				Six Months Ended June 30
		2022		2021		2022		2021
Potash production (Product tonnes - thousands)		3,621		3,414		7,324		6,950
Potash shutdown weeks 1		5		4		5		4
Ammonia production - total 2		1,473		1,492		2,876		2,941
Ammonia production - adjusted 2, 3		1,048		954		2,006		2,007
Ammonia operating rate (%) 3		96		87		92		92
P2O5 production (P2O5 tonnes - thousands)		350		347		728		725
P2O5 operating rate (%)		82		82		86		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 a company that (a) depict historical or expected future financial performance, financial position or cash flow of a 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 a 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, and IFRS adoption transition adjustments.

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)		2022		2021		2022		2021
Net earnings		3,601		1,113		4,986		1,246
Finance costs		130		125		239		245
Income tax expense		1,214		381		1,719		406
Depreciation and amortization		505		485		966		965
EBITDA 1		5,450		2,104		7,910		2,862
Share-based compensation (recovery) expense		(52)		38		83		61
Foreign exchange loss (gain), net of related derivatives		31		(2)		56		?
Integration and restructuring related costs		11		29		20		39
(Reversal) impairment of assets		(450)		1		(450)		5
COVID-19 related expenses 2		3		9		8		18
Gain on disposal of investment		?		?		(19)		?
Cloud computing transition adjustment 3		?		36		?		36
Adjusted EBITDA		4,993		2,215		7,608		3,021
1 EBITDA is calculated as net earnings (loss) 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 Cloud computing transition adjustment relates to cloud computing costs in prior years that no longer qualify for capitalization based on an agenda decision issued by the IFRS Interpretations Committee in April 2021.

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, IFRS adoption transition adjustments and gain/loss on early extinguishment of debt. 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, 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
Impairment reversal 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
		Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
						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				1,108		1.94				1,235		2.16
Adjustments:
Share-based compensation expense		38		29		0.05		61		46		0.08
Foreign exchange gain, net of related derivatives		(2)		(2)		?		?		?		?
Integration and restructuring related costs		29		22		0.03		39		30		0.05
Impairment of assets		1		1		?		5		4		0.01
COVID-19 related expenses		9		7		0.01		18		14		0.02
Cloud computing transition adjustment		36		27		0.05		36		27		0.05
Adjusted net earnings				1,192		2.08				1,356		2.37

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, IFRS adoption transition adjustments, and gain/loss on early extinguishment of debt.

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

Most directly comparable IFRS financial measure: Cash provided by (used in) operating activities.

Definition: Free cash flow is calculated as cash provided by (used in) operating activities less sustaining capital expenditures and before changes in non-cash operating working capital. Free cash flow including non-cash operating working capital is calculated as cash provided by operating activities less sustaining capital expenditures.

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

		Three Months Ended June 30				Six Months Ended June 30
(millions of US dollars)		2022		2021		2022		2021
Cash provided by operating activities		2,558		1,966		2,496		1,814
Sustaining capital expenditures		(256)		(304)		(450)		(468)
Free cash flow including changes in non-cash operating working capital		2,302		1,662		2,046		1,346
Changes in non-cash operating working capital		(1,111)		249		(3,181)		(543)
Free cash flow		3,413		1,413		5,227		1,889

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. In 2022, we replaced Potash cash COPM with this new financial measure. 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)		2022		2021		2022		2021
Total COGS - Potash		399		317		704		608
Change in inventory		(5)		(11)		72		16
Other adjustments 1		(9)		(2)		(24)		(6)
COPM		385		304		752		618
Depreciation and amortization in COPM		(114)		(103)		(233)		(214)
Royalties in COPM		(63)		(19)		(108)		(36)
Natural gas costs and carbon taxes in COPM		(19)		(11)		(36)		(23)
Controllable cash COPM		189		171		375		345
Production tonnes (tonnes - thousands)		3,621		3,414		7,324		6,950
Potash controllable cash COPM per tonne		52		50		51		50
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)		2022		2021		2022		2021
Total Manufactured COGS - Nitrogen		839		597		1,479		1,037
Total Other COGS - Nitrogen		332		166		573		336
Total COGS - Nitrogen		1,171		763		2,052		1,373
Depreciation and amortization in COGS		(115)		(134)		(217)		(242)
Cash COGS for products other than ammonia		(748)		(448)		(1,272)		(841)
Ammonia
Total cash COGS before other adjustments		308		181		563		290
Other adjustments 1		(78)		(27)		(114)		(30)
Total cash COPM		230		154		449		260
Natural gas and steam costs		(195)		(118)		(376)		(192)
Controllable cash COPM		35		36		73		68
Production tonnes (net tonnes 2 - thousands)		606		703		1,280		1,305
Ammonia controllable cash COPM per tonne		58		51		57		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.
2 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, 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
		Rolling four quarters ended June 30, 2021
(millions of US dollars, except as otherwise noted)		Q3 2020		Q4 2020		Q1 2021		Q2 2021		Average/Total
Current assets		7,324		8,013		9,160		9,300
Current liabilities		(4,108)		(6,856)		(7,530)		(7,952)
Working capital		3,216		1,157		1,630		1,348		1,838
Working capital from certain recent acquisitions		?		?		?		?
Adjusted working capital		3,216		1,157		1,630		1,348		1,838
Nutrien Financial working capital		(1,711)		(1,392)		(1,221)		(3,072)
Adjusted working capital excluding Nutrien Financial		1,505		(235)		409		(1,724)		(11)
Sales		2,742		2,618		2,972		7,537
Sales from certain recent acquisitions		?		?		?		?
Adjusted sales		2,742		2,618		2,972		7,537		15,869
Nutrien Financial revenue		(36)		(37)		(25)		(59)
Adjusted sales excluding Nutrien Financial		2,706		2,581		2,947		7,478		15,712
Adjusted average working capital to sales (%)										12
Adjusted average working capital to sales excluding Nutrien Financial (%)										?

Nutrien Financial Adjusted Net Interest Margin

Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial 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 financial performance of Nutrien Financial.

		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 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.
		Rolling four quarters ended June 30, 2021
(millions of US dollars, except as otherwise noted)		Q3 2020		Q4 2020		Q1 2021		Q2 2021		Total/Average
Nutrien Financial revenue		36		37		25		59
Deemed interest expense 1		(15)		(14)		(6)		(8)
Net interest		21		23		19		51		114
Average Nutrien Financial receivables		1,711		1,392		1,221		3,072		1,849
Nutrien Financial adjusted net interest margin (%)										6.2
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, 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, 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
		Rolling four quarters ended June 30, 2021
(millions of US dollars, except as otherwise noted)		Q3 2020		Q4 2020		Q1 2021		Q2 2021		Total
Selling expenses		669		727		667		863		2,926
General and administrative expenses		34		33		39		41		147
Other expenses (income)		(12)		8		15		34		45
Operating expenses		691		768		721		938		3,118
Depreciation and amortization in operating expenses		(167)		(177)		(175)		(166)		(685)
Operating expenses excluding depreciation and amortization		524		591		546		772		2,433
Gross margin		683		885		652		1,858		4,078
Depreciation and amortization in cost of goods sold		3		3		2		3		11
Gross margin excluding depreciation and amortization		686		888		654		1,861		4,089
Cash operating coverage ratio (%)										60

Retail Normalized Comparable Store Sales

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

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

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

		Six Months Ended June 30
(millions of US dollars, except as otherwise noted)		2022		2021
Sales from comparable base
Prior period		10,509		9,425
Adjustments 1		(57)		?
Revised prior period		10,452		9,425
Current period		13,230		10,405
Comparable store sales (%)		27		10
Prior period normalized for benchmark prices and foreign exchange rates		13,706		10,351
Normalized comparable store sales (%)		(3)		1
1 Adjustments relate to prior period sales related to closed locations or businesses that no longer exist in the current period in order to provide a comparable base in our calculation.

Appendix C - Other Financial Measures

Supplementary Financial Measures

Supplementary financial measures are financial measures disclosed by a 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 a 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.

Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance, and plant turnarounds.

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.

Shareholder returns (cash used for dividends and share repurchases): Calculated as dividends paid to Nutrien shareholders plus repurchase of common shares. 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	2022		2021		2022		2021
SALES	2	14,506		9,763		22,163		14,421
Freight, transportation and distribution		221		222		424		433
Cost of goods sold		8,286		6,659		12,483		9,950
GROSS MARGIN		5,999		2,882		9,256		4,038
Selling expenses		1,017		865		1,744		1,538
General and administrative expenses		140		116		266		219
Provincial mining taxes		362		107		611		165
Share-based compensation (recovery) expense		(52)		38		83		61
(Reversal) impairment of assets	3	(450)		1		(450)		5
Other expenses	4	37		136		58		153
EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES		4,945		1,619		6,944		1,897
Finance costs		130		125		239		245
EARNINGS BEFORE INCOME TAXES		4,815		1,494		6,705		1,652
Income tax expense	5	1,214		381		1,719		406
NET EARNINGS		3,601		1,113		4,986		1,246
Attributable to
Equity holders of Nutrien		3,593		1,108		4,971		1,235
Non-controlling interest		8		5		15		11
NET EARNINGS		3,601		1,113		4,986		1,246
NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS")
Basic		6.53		1.94		9.02		2.17
Diluted		6.51		1.94		8.99		2.16
Weighted average shares outstanding for basic EPS		550,048,000		570,352,000		551,335,000		570,007,000
Weighted average shares outstanding for diluted EPS		551,659,000		571,972,000		553,198,000		571,453,000

Condensed Consolidated Statements of Comprehensive Income

		Three Months Ended				Six Months Ended
		June 30				June 30
(Net of related income taxes)		2022		2021		2022		2021
NET EARNINGS		3,601		1,113		4,986		1,246
Other comprehensive (loss) income
Items that will not be reclassified to net earnings:
Net actuarial gain on defined benefit plans		?		?		1		?
Net fair value (loss) gain on investments		(38)		22		(7)		70
Items that have been or may be subsequently reclassified to net earnings:
(Loss) gain on currency translation of foreign operations		(209)		25		(81)		(5)
Other		5		14		21		20
OTHER COMPREHENSIVE (LOSS) INCOME		(242)		61		(66)		85
COMPREHENSIVE INCOME		3,359		1,174		4,920		1,331
Attributable to
Equity holders of Nutrien		3,352		1,170		4,906		1,321
Non-controlling interest		7		4		14		10
COMPREHENSIVE INCOME		3,359		1,174		4,920		1,331
(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	2022		2021		2022		2021
				Note 1				Note 1
OPERATING ACTIVITIES
Net earnings		3,601		1,113		4,986		1,246
Adjustments for:
Depreciation and amortization		505		485		966		965
Share-based compensation (recovery) expense		(52)		38		83		61
(Reversal) impairment of assets	3	(450)		1		(450)		5
Recovery of deferred income tax		(53)		(20)		(8)		(10)
Gain on disposal of investment		?		?		(19)		?
Cloud computing transition adjustment	4	?		36		?		36
Other long-term assets, liabilities and miscellaneous		118		64		119		54
Cash from operations before working capital changes		3,669		1,717		5,677		2,357
Changes in non-cash operating working capital:
Receivables		(3,933)		(2,443)		(4,842)		(2,835)
Inventories		1,748		1,848		(861)		63
Prepaid expenses and other current assets		340		310		1,062		998
Payables and accrued charges		734		534		1,460		1,231
CASH PROVIDED BY OPERATING ACTIVITIES		2,558		1,966		2,496		1,814
INVESTING ACTIVITIES
Capital expenditures 1		(477)		(448)		(828)		(746)
Business acquisitions, net of cash acquired		(27)		(19)		(68)		(40)
Other		(4)		(29)		30		(38)
Net changes in non-cash working capital		(9)		65		(108)		5
CASH USED IN INVESTING ACTIVITIES		(517)		(431)		(974)		(819)
FINANCING ACTIVITIES
Transaction costs related to debt		?		(7)		?		(7)
(Repayment of) proceeds from short-term debt, net		(604)		(104)		850		(3)
Proceeds from long-term debt		41		8		41		8
Repayment of long-term debt		(26)		(5)		(28)		(5)
Repayment of principal portion of lease liabilities		(94)		(86)		(173)		(164)
Dividends paid to Nutrien's shareholders	7	(264)		(263)		(521)		(518)
Repurchase of common shares	7	(964)		(1)		(1,606)		(2)
Issuance of common shares		38		21		164		63
Other		(5)		(12)		(17)		(12)
CASH USED IN FINANCING ACTIVITIES		(1,878)		(449)		(1,290)		(640)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(29)		(4)		(20)		(15)
INCREASE IN CASH AND CASH EQUIVALENTS		134		1,082		212		340
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		577		712		499		1,454
CASH AND CASH EQUIVALENTS - END OF PERIOD		711		1,794		711		1,794
Cash and cash equivalents comprised of:
Cash		628		1,580		628		1,580
Short-term investments		83		214		83		214
		711		1,794		711		1,794
SUPPLEMENTAL CASH FLOWS INFORMATION
Interest paid		150		162		200		238
Income taxes paid		396		105		1,185		144
Total cash outflow for leases		121		111		228		208
1 Includes additions to property, plant and equipment and intangible assets for the three months ended June 30, 2022 of $427 and $50 (2021 - $443 and $5), respectively, and for the six months ended June 30, 2022 of $733 and $95 (2021 - $708 and $38), respectively.
(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Statements of Changes in Shareholders' Equity

								Accumulated Other Comprehensive
								(Loss) Income ("AOCI")
								Loss 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, 2020		569,260,406		15,673		205		(62)		(57)		(119)		6,606		22,365		38		22,403
Net earnings		?		?		?		?		?		?		1,235		1,235		11		1,246
Other comprehensive (loss) income		?		?		?		(4)		90		86		?		86		(1)		85
Shares repurchased (Note 7)		(32,728)		(1)		(1)		?		?		?		?		(2)		?		(2)
Dividends declared		?		?		?		?		?		?		(526)		(526)		?		(526)
Non-controlling interest transactions		?		?		?		?		?		?		?		?		(12)		(12)
Effect of share-based compensation including issuance of common shares		1,427,381		74		(3)		?		?		?		?		71		?		71
Transfer of net gain on cash flow hedges		?		?		?		?		(11)		(11)		?		(11)		?		(11)
BALANCE - JUNE 30, 2021		570,655,059		15,746		201		(66)		22		(44)		7,315		23,218		36		23,254
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 7)		(19,360,408)		(539)		(22)		?		?		?		(1,075)		(1,636)		?		(1,636)
Dividends declared		?		?		?		?		?		?		(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
(See Notes to the Condensed Consolidated Financial Statements)

Condensed Consolidated Balance Sheets

		June 30				December 31
As at	Note	2022		2021		2021
ASSETS
Current assets
Cash and cash equivalents		711		1,794		499
Receivables		10,171		6,683		5,366
Inventories		7,160		4,876		6,328
Prepaid expenses and other current assets		615		524		1,653
		18,657		13,877		13,846
Non-current assets
Property, plant and equipment		20,492		19,592		20,016
Goodwill		12,213		12,211		12,220
Other intangible assets		2,283		2,393		2,340
Investments		731		619		703
Other assets		859		664		829
TOTAL ASSETS		55,235		49,356		49,954
LIABILITIES
Current liabilities
Short-term debt		2,403		210		1,560
Current portion of long-term debt		1,028		32		545
Current portion of lease liabilities		303		276		286
Payables and accrued charges		11,682		9,367		10,052
		15,416		9,885		12,443
Non-current liabilities
Long-term debt		7,056		10,029		7,521
Lease liabilities		913		900		934
Deferred income tax liabilities	5	3,253		3,118		3,165
Pension and other post-retirement benefit liabilities		422		458		419
Asset retirement obligations and accrued environmental costs		1,376		1,559		1,566
Other non-current liabilities		186		153		207
TOTAL LIABILITIES		28,622		26,102		26,255
SHAREHOLDERS' EQUITY
Share capital	7	15,115		15,746		15,457
Contributed surplus		105		201		149
Accumulated other comprehensive loss		(214)		(44)		(146)
Retained earnings		11,563		7,315		8,192
Equity holders of Nutrien		26,569		23,218		23,652
Non-controlling interest		44		36		47
TOTAL SHAREHOLDERS' EQUITY		26,613		23,254		23,699
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		55,235		49,356		49,954
(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, 2022

NOTE 1 BASIS OF PRESENTATION

Nutrien Ltd. (collectively with its subsidiaries, known as "Nutrien", "we", "us", "our" or "the Company") is the world's largest provider of crop inputs and services. Nutrien plays a critical role in helping growers around the globe increase food production in a sustainable manner.

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 International Accounting Standard 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 2021 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 2021 annual audited consolidated financial statements.

Certain immaterial 2021 figures have been reclassified in the condensed consolidated statements of cash flows and segment note.

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 3, 2022.

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 produce.

			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)
Impairment reversal 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			1,427		2,027		1,240		634		(51)		173		5,450
Integration and restructuring related
costs			?		?		?		?		11		?		11
Share-based compensation recovery			?		?		?		?		(52)		?		(52)
Impairment reversal 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 June 30, 2022			24,825		14,777		11,726		2,396		2,562		(1,051)		55,235
1 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.

			Three Months Ended June 30, 2021
											Corporate
			Retail		Potash		Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	- third party		7,522		844		1,008		389		?		?		9,763
	- intersegment		15		61		307		60		?		(443)		?
Sales	- total		7,537		905		1,315		449		?		(443)		9,763
Freight, transportation and
distribution			?		88		136		46		?		(48)		222
Net sales			7,537		817		1,179		403		?		(395)		9,541
Cost of goods sold			5,679		317		763		319		?		(419)		6,659
Gross margin			1,858		500		416		84		?		24		2,882
Selling expenses			863		2		8		1		(9)		?		865
General and administrative expenses			41		3		3		3		66		?		116
Provincial mining taxes			?		107		?		?		?		?		107
Share-based compensation expense			?		?		?		?		38		?		38
Impairment of assets			?		?		1		?		?		?		1
Other expenses			34		11		5		3		83		?		136
Earnings (loss) before finance costs
and income taxes			920		377		399		77		(178)		24		1,619
Depreciation and amortization			169		116		155		35		10		?		485
EBITDA			1,089		493		554		112		(168)		24		2,104
Integration and restructuring related
costs			7		?		?		?		22		?		29
Share-based compensation expense			?		?		?		?		38		?		38
Impairment of assets			?		?		1		?		?		?		1
COVID-19 related expenses			?		?		?		?		9		?		9
Foreign exchange gain, net of related
derivatives			?		?		?		?		(2)		?		(2)
Cloud computing transition
adjustment			1		2		?		?		33		?		36
Adjusted EBITDA			1,097		495		555		112		(68)		24		2,215
Assets - at December 31, 2021			22,387		13,148		11,093		1,699		2,266		(639)		49,954

			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
Impairment reversal 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
Impairment reversal 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 June 30, 2022			24,825		14,777		11,726		2,396		2,562		(1,051)		55,235

			Six Months Ended June 30, 2021
											Corporate
			Retail		Potash		Nitrogen		Phosphate		and Others		Eliminations		Consolidated
Sales	- third party		10,482		1,475		1,703		761		?		?		14,421
	- intersegment		27		151		467		132		?		(777)		?
Sales	- total		10,509		1,626		2,170		893		?		(777)		14,421
Freight, transportation and
			?		198		231		105		?		(101)		433
Net sales			10,509		1,428		1,939		788		?		(676)		13,988
Cost of goods sold			7,999		608		1,373		638		?		(668)		9,950
Gross margin			2,510		820		566		150		?		(8)		4,038
Selling expenses			1,530		5		15		3		(15)		?		1,538
General and administrative expenses			80		5		5		5		124		?		219
Provincial mining taxes			?		165		?		?		?		?		165
Share-based compensation expense			?		?		?		?		61		?		61
Impairment of assets			?		?		5		?		?		?		5
Other expenses (income)			49		12		(25)		6		111		?		153
Earnings (loss) before finance costs
and income taxes			851		633		566		136		(281)		(8)		1,897
Depreciation and amortization			346		240		284		73		22		?		965
EBITDA			1,197		873		850		209		(259)		(8)		2,862
Integration and restructuring related
costs			8		?		?		?		31		?		39
Share-based compensation expense			?		?		?		?		61		?		61
Impairment of assets			?		?		5		?		?		?		5
COVID-19 related expenses			?		?		?		?		18		?		18
Cloud computing transition
adjustment			1		2		?		?		33		?		36
Adjusted EBITDA			1,206		875		855		209		(116)		(8)		3,021
Assets - at December 31, 2021			22,387		13,148		11,093		1,699		2,266		(639)		49,954

Presented below is revenue from contracts with customers disaggregated by product line or geographic location for each reportable segment.

		Three Months Ended				Six Months Ended
		June 30				June 30
		2022		2021		2022		2021
Retail sales by product line
Crop nutrients		4,548		3,045		6,135		4,061
Crop protection products		2,983		2,666		4,370		3,751
Seed		1,269		1,216		1,727		1,679
Merchandise		280		268		514		498
Nutrien Financial		91		59		140		84
Services and other 1		310		320		485		485
Nutrien Financial elimination 1,2		(59)		(37)		(88)		(49)
		9,422		7,537		13,283		10,509
Potash sales by geography
Manufactured product
North America		757		414		1,684		856
Offshore 3		1,988		491		3,005		770
		2,745		905		4,689		1,626
Nitrogen sales by product line
Manufactured product
Ammonia		786		405		1,377		593
Urea		637		372		1,121		646
Solutions, nitrates and sulfates		578		329		1,052		526
Other nitrogen and purchased products		360		209		647		405
		2,361		1,315		4,197		2,170
Phosphate sales by product line
Manufactured product
Fertilizer		358		258		790		530
Industrial and feed		204		133		388		259
Other phosphate and purchased products		83		58		163		104
		645		449		1,341		893
1 Certain immaterial 2021 figures have been reclassified.
2 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.
3 Relates to Canpotex Limited ("Canpotex") (Note 9) and includes provisional pricing adjustments for the three months ended June 30, 2022 of $191 (2021 - $45) and the six months ended June 30, 2022 of $253 (2021 - $51).

NOTE 3 IMPAIRMENT OF ASSETS

Phosphate Impairment Reversal

In the three months ended June 30, 2022, we revised our pricing forecasts to reflect the current macroeconomic environment. This resulted in a review of our previously impaired Phosphate cash-generating units ("CGUs").

In 2020, we recorded an impairment of assets relating to property, plant and equipment of $545 at our Aurora CGU as a result of lower long-term forecasted global phosphate prices. Due to increases in our forecast, the recoverable amount of our Aurora CGU is above its carrying amount. As a result, during the three and six months ended June 30, 2022, we recorded an impairment reversal of $450 (full reversal, net of depreciation) in the statement of earnings relating to property, plant and equipment.

Aurora CGU
Segment		Phosphate
Impairment reversal indicator		Higher forecasted global prices
Valuation methodology		Fair value less costs of disposal ("FVLCD")
Fair value hierarchy		Level 3
Valuation technique		Five-year DCF1 plus terminal year to end of mine life
Key assumptions
End of mine life (proven and probable reserves) (year)		2050
Long-term growth rate (%)		2.0
Post-tax discount rate (%) 2		10.4
1 Discounted Cash Flow
2 Post-tax discount rate used in the previous measurement was 10.5%

		As at
Aurora CGU		June 30, 2022
Recoverable amount		2,900
Carrying amount		1,200

The recoverable amount estimate is most sensitive to the following key assumptions: our internal sales and input price forecasts, which consider projections from independent third-party data sources, discount rate, and expected mine life. We used key assumptions that were based on historical data and estimates of future results from internal sources, external price benchmarks, and mineral reserve technical reports, as well as industry and market trends. For our Aurora CGU, there were no reasonably possible changes in key assumptions that would result in a substantial change in the reversal amount.

In 2017 and 2020, we recorded an impairment of assets at our White Springs CGU relating to property, plant and equipment of $250 and $215 respectively. The White Springs CGU has a shorter expected mine life and is therefore more sensitive to changes in short and medium-term pricing forecasts. The impairment test performed on our White Springs CGU at June 30, 2022 did not result in recognition of an impairment reversal as the recoverable amount was not substantially different than the carrying amount of the CGU. We are continuously monitoring our key assumptions for changes that could have an impact on the recoverable amount including our internal sales and input price forecasts. Changes in these key assumptions could result in impairment reversals in future periods. The maximum impairment reversal that could result at our White Springs CGU is $340 (full reversal, net of depreciation).

Goodwill Impairment Indicators

During the six months ended June 30, 2022, North American central banks continued to increase their benchmark borrowing rates and have forecasted additional near-term increases. Benchmark borrowing rates are used as the risk-free rate which, is a component of determining our discount rate for impairment testing. As a result of these increases, we revised our discount rate to 8.0 percent (previous annual impairment analysis - 7.4 percent) and this triggered an impairment test to be performed for our Retail - North America group of CGUs. We used the FVLCD methodology based on after-tax discounted cash flows (five-year projections and a terminal year thereafter) and incorporated assumptions an independent market participant would apply. FVLCD is a Level 3 measurement.

		2021 Impairment		As at
Retail - North America group of CGUs		Analysis		June 30, 2022
Carrying amount of goodwill (billions)		6.9		6.9
Excess carrying amount over recoverable amount (billions)		1.5		0.8
Excess carrying amount over recoverable amount (percent)		12		7

Goodwill is more susceptible to impairment risk if business operating results or economic conditions deteriorate and actual results do not meet our forecasts. A reduction in the terminal growth rate, an increase in the discount rate or a decrease in forecasted EBITDA and cash flows could cause impairment in the future.

The following table indicates the percentages by which key assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount:

				Change Required for
		Value Used in Impairment		Carrying Amount to Equal
Key Assumptions		Model		Recoverable Amount
Terminal growth rate (%)		2.5		percentage point decrease		0.6
Forecasted EBITDA over forecast period (in billions of US dollars)		7.5		percent decrease		5.0
Discount rate (%)		8.0		percentage point increase		0.4

NOTE 4 OTHER EXPENSES (INCOME)

		Three Months Ended				Six Months Ended
		June 30				June 30
		2022		2021		2022		2021
Integration and restructuring related costs		11		29		20		39
Foreign exchange loss, net of related derivatives		31		1		56		3
Earnings of equity-accounted investees		(77)		(2)		(118)		(22)
Bad debt expense		14		13		14		15
COVID-19 related expenses		3		9		8		18
Gain on disposal of investment		?		?		(19)		?
Cloud computing transition adjustment		?		36		?		36
Other expenses		55		50		97		64
		37		136		58		153

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
		2022		2021		2022		2021
Income tax expense		1,214		381		1,719		406
Actual effective tax rate on earnings (%)		25		26		26		25
Actual effective tax rate including discrete items (%)		25		26		25		25
Discrete tax adjustments that impacted the tax rate		12		(3)		20		(3)

Income tax balances within the condensed consolidated balance sheets were comprised of the following:

Income Tax Assets and Liabilities		Balance Sheet Location		As at June 30, 2022		As at December 31, 2021
Income tax assets
Current		Receivables		252		223
Non-current		Other assets		132		166
Deferred income tax assets		Other assets		355		262
Total income tax assets				739		651
Income tax liabilities
Current		Payables and accrued charges		1,132		606
Non-current		Other non-current liabilities		52		44
Deferred income tax liabilities		Deferred income tax liabilities		3,253		3,165
Total income tax liabilities				4,437		3,815

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 2021 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:

		June 30, 2022								December 31, 2021
		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
Cash and cash equivalents		711		?		711		?		499		?		499		?
Derivative instrument assets		34		?		34		?		19		?		19		?
Other current financial assets - marketable securities 2		133		18		115		?		134		19		115		?
Investments at FVTOCI 3		237		227		?		10		244		234		?		10
Derivative instrument liabilities		(24)		?		(24)		?		(20)		?		(20)		?
Amortized cost
Current portion of long-term debt
Notes and debentures		(999)		?		(995)		?		(500)		(506)		?		?
Fixed and floating rate debt		(29)		?		(29)		?		(45)		?		(45)		?
Long-term debt
Notes and debentures		(6,921)		(931)		(5,683)		?		(7,424)		(4,021)		(4,709)		?
Fixed and floating rate debt		(135)		?		(135)		?		(97)		?		(97)		?
1 During the periods ended June 30, 2022 and December 31, 2021, there were no transfers between levelling for financial instruments measured at fair value on a recurring basis.
2 Marketable securities consist of equity and fixed income securities. We determine the fair value of equity securities based on the bid price of identical instruments in active markets. We value fixed income securities using quoted prices of instruments with similar terms and credit risk.
3 Investments at fair value through other comprehensive income ("FVTOCI") is primarily comprised of shares in Sinofert Holdings Ltd.

NOTE 7 SHARE CAPITAL

Share Repurchase Programs

						Maximum		Maximum		Number of
		Commencement				Shares for		Shares for		Shares
		Date		Expiry		Repurchase		Repurchase (%)		Repurchased
2020 Normal Course Issuer Bid		February 27, 2020		February 26, 2021		28,572,458		5		710,100
2021 Normal Course Issuer Bid		March 1, 2021		February 28, 2022		28,468,448		5		22,186,395
2022 Normal Course Issuer Bid 1		March 1, 2022		February 28, 2023		55,111,110		10		13,156,167
1 The 2022 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
		2022		2021		2022		2021
Number of common shares repurchased for cancellation		11,712,173		17,750		19,360,408		32,728
Average price per share (US dollars)		89.51		52.88		84.48		52.90
Total cost		1,049		1		1,636		2

As of August 2, 2022, an additional 2,205,645 common shares were repurchased for cancellation at a cost of $172 and an average price per share of $78.21.

Dividends Declared

We declared a dividend per share of $0.48 (2021 - $0.46) during the three months ended June 30, 2022, payable on July 15, 2022 to shareholders of record on June 30, 2022.

NOTE 8 SEASONALITY

Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in 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 needs. 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 9 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 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, 2022		December 31, 2021
Receivables from Canpotex		1,805		828

NOTE 10 SUBSEQUENT EVENTS

On July 20, 2022, Nutrien announced the planned acquisition of Casa do Adubo S.A. The acquisition includes 39 retail locations and 10 distribution centers in Brazil. Closing of the transaction is subject to approval from the Administrative Council for Economic Defense (CADE) in Brazil and is expected to be completed in the second half of 2022.

Subsequent to June 30, 2022, and in addition to the $500 increase in our uncommitted revolving demand facility during the second quarter of 2022, we entered into $2 billion in new non-revolving term credit facilities, all with the same principal covenants and events of default as our existing revolving term credit facilities. These new facilities are temporary to help manage normal seasonal working capital swings and are intended to be closed before year-end. As of August 2, 2022, we had approximately $3.0 billion drawn on our credit facilities and a commercial paper balance of approximately $2.1 billion.

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Investors@nutrien.com

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