Slide 1: Nutrien Q1 2020 Results Presentation
Nutrien Q1 2020 Results Presentation May 6, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements 2 Certain statements and other information included in this document, including within “Outlook and Guidance” constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statem
Slide 3: First Quarter 2020 Results
First Quarter 2020 Results May 6, 2020
Slide 4: Q1 2020 Financial and Strategic Highlights
Q1 2020 Financial and Strategic Highlights 4 • Nutrien announced a net loss of $35 million ($0.061 diluted net loss per share) in Q1 2020. First-quarter adjusted net loss was $0.12 per share and adjusted EBITDA was $508 million. • COVID-19 has had limited direct impact on Nutrien’s operations or cro
Slide 5: Nutrien Q1 2020: Adjusted EBITDA Comparison
Nutrien Q1 2020: Adjusted EBITDA1 Comparison 5 Adjusted EBITDA decreased primarily due to lower prices across fertilizer product categories. Retail EBITDA increased due to stronger sales and stable-to-improving margins in the three largest sales categories. Segment EBITDA and Adjusted EBITDA (US$ Mi
Slide 6: Retail: Q1 2020 Gross Margin Bridge
Retail: Q1 2020 Gross Margin Bridge 6 Higher gross margin due to stronger sales and stable-to-improving margins in the three largest sales categories. Results were supported by organic and acquisition growth and solid contributions from our proprietary products lines. US$ Millions $529 $409 May 6, 2
Slide 7: Potash: Q1 2020 Gross Margin Bridge
Potash: Q1 2020 Gross Margin Bridge 7 Lower benchmark prices impacted potash margins US$ Millions $425 $252 Q1'19 Net Selling Price Volumes COGS D&A in Q1'20 1 Gross Margin excl. D&A COGS Gross Margin 1. COGS variance does not include depreciation and amortization (D&A). May 6, 2020 Source: Nutrien
Slide 8: Potash: Lower EBITDA on lower net realized prices and offshore volumes
Potash: Lower EBITDA on lower net realized prices and 8 offshore volumes, offset by higher North American volumes. 2.9 2.9 Potash EBITDA 1.7 Offshore 1.9 US$ Millions Sales Volumes Million Tonnes 1.0 1.2 N. America -38% Q1’19 Q1’20 $461 -24% $238 $285 $180 Net Selling Price US$/MT Q1’19 Q1’20 +3% Ca
Slide 9: Nitrogen: Q1 2020 Gross Margin Bridge
Nitrogen: Q1 2020 Gross Margin Bridge 9 Nitrogen results impacted primarily by lower global and North American nitrogen benchmark prices US$ Millions -$7 $166 $97 Q1'19 Net Selling Price Volumes Other Nitrogen and COGS 1 D&A in Q1'20 Gross Margin Purchased Product excl. D&A COGS Gross Margin 1. COGS
Slide 10: Nitrogen: EBITDA Impacted by Lower Prices
Nitrogen: EBITDA Impacted by Lower Prices 10 -2% 93% 91% Nitrogen EBITDA Ammonia US$ Millions Operating Rate1 Percent -14% Q1’19 Q1’20 $274 $236 -14% $244 $210 Net Selling Price US$/MT Q1’19 Q1’20 Ammonia +9% Controllable Cash $43 $47 Cost of Product Manufactured US$/MT Q1’19 Q1’20 Q1’19 Q1’20 1. Ex
Slide 11: Phosphate: Q1 2020 Gross Margin Bridge
Phosphate: Q1 2020 Gross Margin Bridge 11 Lower global benchmark pricing impacted margins but was partially offset by lower raw material costs US$ Millions $14 -$7 Q1'19 Net Selling Price Volumes COGS 1 D&A in Q1'20 Gross Margin excl. D&A COGS Gross Margin May 6, 2020 1. COGS variance does not inclu
Slide 12: Returns to Shareholders Through Dividends and Share Repurchases
Returns to Shareholders Through Dividends and 12 Share Repurchases Commitment to a stable and growing dividend, with a current yield of over 5%1 Dividends Paid and Share Repurchases Dividends Paid US$ Billions US$/Share Share Repurchases Dividends Paid $2.31 $0.45 $0.43 $0.40 $1.29 $1.02 3 LTM2 Q1’2
Slide 13: Nutrien Ag Solutions Digital Platform
Nutrien Ag Solutions Digital Platform 13 Exceptional adoption of our full-service digital platform Proportion of Digital Platform Sales1,4 Digital Platform Sales 1 Percent US$ Millions $207 40% $36 2 $171 $65 11% $3 1% 3 3 Q1'19 2019 Q1'20 Q1'19 2019 Quarterly Avg. Q1'20 1. Q1’19 and 2019 represents
Slide 14: Nutrien Ag Solutions Digital Platform: Progress Update and Future Plans
Nutrien Ag Solutions Digital Platform: 14 “Progress Update and Future Plans” Current Functionality Planned Additions for 2020 ✓ Purchasing of key crop protection, fertilizer Crop Planning Tool and seed products, order online or have your Ability to place digital orders directly from the agronomist d
Slide 15: Outlook and Guidance
Outlook and Guidance May 6, 2020
Slide 16: Grower Margins Have Declined, but Fertilizer Prices Remain Affordable
Grower Margins Have Declined, but Fertilizer 16 Prices Remain Affordable Prospective US grower margins have been pressured by reduced crop futures; however, relatively favorable S/D balances and FX weakness have supported non-US production economics Key Crop Grower Cash Margins Local Currency Margin
Slide 17: Brazilian Grower Fundamentals are Strong
Brazilian Grower Fundamentals are Strong 17 Increased Brazilian currency depreciation vs. the USD could lead to record high grower margins and another increase in soybean acreage in 2H 2020 Mato Grosso Cash Soybean Margins Mato Grosso Cash Soybean & Corn Prices Real/hectare Real/Sack 2,000 100 Soybe
Slide 18: Australia has Received Much Needed Moisture
Australia has Received Much Needed Moisture 18 South East Australia, a key growing region, has received above average precipitation which are improving soil conditions (Key growing regions circled in red) May 6, 2020 Source: Australia Bureau of Meteorology
Slide 19: US Corn & Soybean Planting Progress
US Corn & Soybean Planting Progress 19 US planting pace is significantly improved from historically low 2019 levels, but started slow in the southern growing regions Corn Planting Progress Soybean Planting Progress % of planting completed % of planting completed 100 100 90 90 80 80 70 70 60 60 50 50
Slide 20: North American Major Crop Acreage Forecast
North American Major Crop Acreage Forecast 20 Compared to USDA forecasts, we expect lower corn and cotton acreage, and higher soybean acreage Million Acres 2020F 2020F 2013 2014 2015 2016 2017 2018 2019 (USDA) (NTR) Corn 95.3 90.6 88.4 94.0 90.2 89.9 89.7 97.0 94-96 Soybeans 76.5 83.7 83.2 83.4 90.1
Slide 21: Global Potash Deliveries by Region
Global Potash Deliveries by Region 21 We project improved global potash demand of 65 to 67 million tonnes in 2020, up from ~64 million tonnes in 2019 Million Tonnes KCl 20 15 10 5 0 16 17 18 19 20F 16 17 18 19 20F 16 17 18 19 20F 16 17 18 19 20F 16 17 18 19 20F 16 17 18 19 20F India Other Asia North
Slide 22: Global Potash Producer Sales
Global Potash Producer Sales 22 Nutrien well-positioned to meet an increase in global potash demand Global Potash Producer Shipment Changes (Million Tonnes KCl) 66.0 0.2 0.8 0.4 0.8 63.8 2019 Nutrien Other Former Rest of the 2020F Shipments North American Soviet Union World Shipments Producers Produ
Slide 23: Chinese Urea Exports Respond to Market Signal
Chinese Urea Exports Respond to Market Signal 23 Slow start to 2020 export, but expect increased Chinese operating rates and strong global demand to support urea exports the remainder of the year Chinese Urea Fundamentals Price/Cost (US$/tonne) Improved operating rates, increased $350 production and
Slide 24: Lower Energy Prices Pressure Nitrogen Prices
Lower Energy Prices Pressure Nitrogen Prices 24 Global natural gas prices remain under pressure due to high LNG supply; Low crude oil prices likely limit upside, but not as impactful as they were historically Global Export Ammonia Cost Curve Global Urea Cost Curve US$/tonne US$/tonne 2020 2019 2018
Slide 25: Nutrien 2020 Annual Guidance
Nutrien 2020 Annual Guidance 25 2020 Guidance Ranges 1 (annual guidance except where noted) Low High Adjusted net earnings per share 1 $1.50 $2.10 Adjusted EBITDA (billions) $3.5 $3.9 Retail EBITDA (billions) $1.4 $1.5 Potash EBITDA (billions) $1.0 $1.2 Nitrogen EBITDA (billions) $1.1 $1.3 Phosphate
Slide 26: Thank You!
Thank You! For further information, visit: www.nutrien.com twitter.com/nutrienltd facebook.com/nutrienltd linkedin.com/company/nutrien youtube.com/nutrien