About Nutrien

Nutrien Ltd. (Nutrien) operates as a world-class integrated provider of crop inputs and services, playing a critical role in helping growers around the globe increase food production in a sustainable manner. The company supplies growers through its leading global Retail network – including crop nutrients, crop protection products, seed and merchandise, as well as agronomic and application services. The company operates more than 2,000 retail locations across the U.S., Canada, Australia and South America, servicing approximately 500,000 grower accounts. The company is the world’s largest provider of crop inputs and services, producing the three crop nutrients: potash, nitrogen and phosphate. The company produces and distributes approximately 27 million tonnes of crop nutrient products from its facilities in Canada, the United States (U.S.) and Trinidad. As of December 31, 2021, the company estimated its Potash operations represented 21 percent of global potash capacity, its Nitrogen operations represented 3 percent of global nitrogen capacity and its Phosphate operations represented 3 percent of global phosphate capacity. Segments The company operates through four segments: Retail, Potash, Nitrogen and Phosphate. Nutrien Ag Solutions (Retail) Operations This segment markets crop nutrients, crop protection products, seed, and merchandise, as well as agronomic application services and solutions through more than 2,000 Retail locations across the U.S., Canada, Australia and South America. In 2021, the company’s total Retail sales represented 64 percent of its total consolidated sales (2020 – 71 percent). Retail’s products and services are as follows: Crop Nutrients: Dry and liquid macronutrient products, which include potash, nitrogen and phosphate, proprietary liquid micronutrient products, and nutrient application services, which are sold globally, such as custom blend to suit specific nutrient requirements for each grower’s field typically based on soil fertility tests or plant tissue sampling; and custom crop nutrient application services using a large fleet of application equipment to apply these nutrients at prescribed rates. Crop Protection Products: Third-party supplier and proprietary products designed to maintain crop quality and manage plant diseases, weeds and other pests. Private label and proprietary crop protection products through the company’s Loveland Products, Inc. business across North America, South America and Australia. Seed: Third-party supplier seed brands and proprietary seed product lines, which are sold globally. Private label seed product line under the brand names Dyna-Gro and Proven. Proprietary seed product line in Brazil under the brand name Sementes Goiás. Seed treatment applying chemicals to seeds prior to planting to protect them from pests and disease. Nutrien Financial: Flexible financing solutions offered to the company’s customers in the U.S. and Australia, such as extended payment terms, typically up to one year, to facilitate alignment of grower crop cycles with cash flows; and revenue primarily earned through interest and service fees charged to its Retail branches. Merchandise: Livestock-related merchandise, including fencing, feed supplements, animal identification merchandise and various animal health products and services. Storage and irrigation equipment and other products primarily in Australia. Services and Other: Custom application services, crop scouting and precision agriculture services, soil and leaf testing. Precision application using global positioning system (GPS) technology, which allows nutrient application rates to be adjusted when required, based on GPS grid soil sample test results and other data. Performance of soil and leaf testing for growers in the U.S. Monitoring of crop disease conditions and irrigation requirements for high-value crops using a system of weather tracking stations in Western U.S. Digital tools that provide customer account management, online ordering, agronomic insights and hands-on customer support that drive economic value and can provide environmental benefits for the company’s growers, including its Echelon precision agriculture offering, which includes services, such as yield data mapping, record keeping, soil fertility management, variable-rate fertility and variable-rate seeding recommendations. Various other services, including wool sales and marketing, livestock marketing and auction services, water services, insurance products and real estate agency services in Australia. Transportation, Storage and Distribution The company has an extensive infrastructure system to store and transport its Retail products, strategically located across distribution points in regions where it operates to serve its customers across the U.S., Canada, Australia and South America. Potash Operations This segment’s operations include the mining and processing of potash, which is predominantly used as fertilizer. The Saskatchewan Ministry of Energy and Resources has granted Nutrien the exclusive right to mine potash on approximately 379,000 hectares (or approximately 936,000 acres) of Crown land pursuant to subsurface mineral leases. Of the 379,000 hectares leased from the Crown, approximately 278,000 hectares comprise its Potash operations at the Allan, Cory, Lanigan, Patience Lake, Rocanville, and Vanscoy mines. Leases also exist with freehold mineral rights owners within the Crown subsurface mineral lease areas and elsewhere in Saskatchewan. Subsurface mineral leases with the Province of Saskatchewan are for 21-year terms, renewable at the company’s option at each of its producing mines. The company’s subsurface mineral leases with other parties are also for 21-year terms. Such other leases are renewable at its option, provided generally that production is continuing and that there is continuation of the applicable lease with the Province of Saskatchewan. The potash the company produces in Canada for sale to destinations outside Canada and the U.S. is sold exclusively to Canpotex Limited (Canpotex). Canpotex is owned in equal shares by the company and another potash producer in Canada. Canpotex acts as an export company providing integrated sales, marketing and distribution for all Canadian potash produced by its shareholders/producers that is exported to destinations outside the U.S. and Canada. In general, Canpotex sales volumes are allocated among Canpotex producers based on production capacity. In 2021, Nutrien supplied approximately 67 percent of Canpotex’s product supply requirements. Canpotex sells potash to buyers in export markets pursuant to term and spot contracts at agreed upon prices. Canpotex has a long history of being a reliable supplier of potash to international markets and of proven logistics and marketing capabilities. Other major potash exporting countries include Russia, Belarus and Germany. Transportation, Storage and Distribution Most of the company’s potash for North American customers is shipped by rail. The company has a strategic advantage in this market with approximately 300 owned or leased potash distribution points as at December 31, 2021 and a fleet of approximately 6,200 owned and leased railcars as at December 31, 2021. This is the most extensive domestic distribution network in the potash business. Shipments are also made by rail from each of its Saskatchewan mines to Thunder Bay, Ontario for shipment by lake vessel to the company’s warehouses and storage facilities in Canada and the U.S. In the case of the company’s sales to Canpotex, Canpotex is responsible for managing and directing all aspects of its logistics infrastructure platform, including the transportation of its potash by way of rail to marine facilities where it is handled, stored and loaded onto ocean-going vessels. The company has an equity interest in Canpotex Bulk Terminals Limited, which is a part owner of the marine facilities utilized by Canpotex in Vancouver, British Columbia. Canpotex also utilizes marine facilities in Portland, Oregon, Saint John, New Brunswick and Thunder Bay, Ontario. Production Methods The company generally produces potash primarily using conventional mining methods, except for its Patience Lake mine, which was originally a conventional underground mine, but began employing a solution mining method in 1989. In 2021, the company’s nameplate capacity represented 55 percent of the North American total capacity and its potash production represented 58 percent of North American production. Competition In 2021, the company’s principal competitors in North America included PA Belaruskali; EuroChem Group AG; ICL; Intrepid Potash Inc.; K+S Group; The Mosaic Company (Mosaic); and PJSC Uralkali. In 2021, Canpotex competed with producers, such as APC; PA Belaruskali; EuroChem Group AG; ICL; K+S Group; SQM; and PJSC Uralkali. Nitrogen Operations This segment owns and operates nitrogen production facilities at which it produces, such as ammonia, urea, urea ammonium nitrate (UAN), urea solutions, nitric acid, ammonium nitrate, and ammonium sulfate. The company operates a number of facilities that upgrade ammonia and urea to other products, such as UAN, ammonium nitrate, nitric acid and Environmentally Smart Nitrogen (ESN). Nitrogen products produced include rainbow plant food, ESN, UAN, ammonium nitrate liquor and nitric acid. The company’s owned and operated facilities have a combined annual gross ammonia nameplate capacity of approximately 7.1 million tonnes. The company also has a 50 percent joint venture ownership in Profertil S.A. (Profertil), a joint venture that owns a nitrogen facility in Bahia Blanca, Argentina. Transportation, Storage and Distribution The company distributes its nitrogen products by vessel, barge, railcar and truck to its customers and, in high-consumption areas, through its strategically located storage terminals. In North America, as of December 31, 2021, the company leased or owned approximately 220 nitrogen distribution points, as well as a fleet of approximately 5,200 owned or leased railcars. The company also leases dry and liquid storage capacity in Europe. These locations provide a network of field and production site storage capacity sufficient to serve local dealers during the peak seasonal demand period and are also used to provide off-season storage. The company distributes products from Trinidad primarily to markets in the U.S., South America, Europe and North Africa. The company employs four long-term chartered ocean-going vessels and utilize short-term and spot charters as necessary for the transportation of ammonia for its marine distribution operations in Trinidad. Production Methods The company produces sulfuric acid from purchased sulfur at its Redwater, Alberta facility. ESN is a patented coated-fertilizer product that is made by coating the urea substrate with layers of polymers, allowing for more efficient delivery of nitrogen to the plant. Ammonia, urea and nitrogen solutions are sold as fertilizers to agricultural customers and to industrial customers for various applications. Nitric acid and ammonium nitrate are sold to industrial customers for various applications. Urea is also sold for feed applications. ESN is sold to agricultural customers. Urea solution is sold to industrial and agricultural customers. Competition Within North America, transportation costs play a factor in regional price differences and the company competes with other domestic producers, including CF Industries Holdings, Inc.; CVR Partners, L.P.; Koch Industries, Inc.; LSB Industries, Inc.; OCI N.V.; and Yara International ASA. Phosphate Operations This segment’s operations include the manufacture and sale of solid and liquid phosphate fertilizers, phosphate feed, and purified phosphoric acid, which is used in feed and industrial products. The company has phosphate mines and mineral processing plant complexes in Aurora, North Carolina and White Springs, Florida. The company also has three Phosphate feed plants in the U.S. Primary Products Produced include diammonium phosphate (DAP), monoammonium phosphate (MAP), SPA, liquid fertilizer, purified acid, merchant grade phosphoric acid (MGA), hydrofluorosilicic acid, defluorinated merchant grade acid, low magnesium superphosphoric acid (SPA) (LOMAG), anhydrous hydrogen fluoride (AHF), blended purified acid products, hydrofluorosilicic acid (HFSA), MAP, sulfur enhanced MAP (MAP MST) and animal feed. The company has long-term supply and offtake agreements with Itafos Conda LLC, which extend through 2023. Under these agreements, the company expects to market an estimated 330,000 tonnes per year of MAP produced at Conda, Idaho. The company executes offshore marketing and sales of its solid phosphate fertilizer through PCS Sales (USA), Inc. Transportation, Storage and Distribution As of December 31, 2021, the company had approximately 150 owned or leased phosphate distribution points and a fleet of approximately 5,300 owned and leased railcars. The company has long-term leases on shipping terminals in Morehead City and Beaufort, North Carolina through which it receives and stores Aurora facility finished product. Most of the company’s offshore phosphate sales are shipped through the terminal at Morehead City. The company uses barges and tugboats to transport solid products and phosphoric acid between the Aurora facility and shipping terminals. Raw materials and products, including sulfur, are also transported to and from the Aurora facility by rail and truck. Sulfur is delivered to the White Springs facility by rail and truck from Canada and the U.S. Most of the phosphoric acid and chemical fertilizers produced at the White Springs facility are shipped to North American destinations by rail. Ammonia for the Aurora and White Springs facilities is supplied by rail and truck from the company’s production facilities in Lima, Ohio and Augusta, Georgia. Competition The company’s key competitors for North American phosphate fertilizer sales are Mosaic, J.R. Simplot Company and offshore imports primarily from Mexico, Jordan, Australia, Saudi Arabia and various other smaller importers. In offshore markets, the company competes primarily with OCP S.A. (OCP) from Morocco and other producers from Africa, China, the Middle East and Russia. The company competes with Mosaic, J.R. Simplot Company, and OCP. Industrial products are the least commodity-like of the phosphate products as product quality is a more significant consideration for customer buying decisions. The company markets industrial phosphate products principally in the U.S. and it competes with ICL; Innophos Holdings, Inc.; Prayon Group; and OCP. Seasonality The company’s cash collections generally occur after the application season is complete, while customer prepayments made to it is concentrated in December and January and inventory prepayments paid to its vendors are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year (year ended December 31, 2021). Government Regulations With respect to air emissions, the company anticipates that additional actions and expenditures may be required to meet increasingly stringent federal, provincial and state regulatory and permit requirements in the areas in which it operates, including existing and anticipated regulations under the U.S. federal Clean Air Act. The company is negotiating with the U.S. Environmental Protection Agency (EPA) and the relevant state environmental agencies to resolve the matters relating to these facilities, and these negotiations are ongoing. The company’s Canadian manufacturing facilities are primarily located in the provinces of Alberta and Saskatchewan and is subject to a variety of federal and provincial requirements to reduce greenhouse gas (GHG) emissions ranging from carbon taxes to emission intensity reduction requirements. The company attempts to minimize its Canadian compliance costs through the implementation of various efficiency and emissions reduction projects, including: overall efforts to increase operational efficiency; operating a cogeneration facility in partnership with TransCanada Energy Ltd., a subsidiary of TC Energy Corporation, at Carseland, Alberta that captures waste heat and produces emission offset credits; operating a cogeneration facility in partnership with SaskPower at its Cory, Saskatchewan potash mine that captures waste heat and provides all of the mine’s steam requirements; and the implementation of the Quantification Protocol for Agricultural Nitrous Oxide Emissions Reduction designed to generate emission offset credits for Alberta growers who reduce their nitrous oxide (N2O) emissions. The company has also partnered with Enhance Energy Inc. to supply carbon dioxide (CO2) from the Redwater Nitrogen facility to the Alberta Carbon Trunk Line to be captured and used for enhanced oil recovery in Central Alberta. History The company was founded in 2017. The company was formerly known as Potash Corporation of Saskatchewan Inc. and changed its name to Nutrien Ltd. in 2017.