Slide 1: Nutrien Investor Day 2019
Nutrien Investor Day 2019 ou Shangri-La Hotel : e | 188 University Avenue Toronto, ON Nutrien Feeding the Future www.nutrien.com
Slide 2: Forward Looking Statements
Forward Looking Statements 2 Certain statements and other information included in this presentation constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statements are often accompanied by words s
Slide 3: Platform to Deliver Superior Long-term Value
Platform to Deliver Superior Long-term Value Chuck Magro – President and CEO May 28, 2019
Slide 4: Agenda
Agenda 4 SCHEDULED TIME (ET) PRESENTER TOPIC 10:30 AM - 10:35 AM Richard Downey Introduction 10:35 AM - 11:00 AM Chuck Magro Strategy Update 11:00 AM - 11:25 AM Mike Frank Retail Update 11:25 AM - 12:00 PM Mike Frank Digital Platform Demo and Q&A 12:00 PM - 12:45 PM Lunch 12:45 PM - 1:05 PM Susan Jo
Slide 5: Market Update
Market Update 5 • Weather has improved in some areas, but remains challenged in others • Planting tracking behind 5-year average, which will likely result in Near-term fewer corn acres than previously expected • Farm economics has improved due to stronger crop prices and the recent US government far
Slide 6: Key Messages
Key Messages 6 ❑ Best-positioned company in the agriculture sector ❑ Integrated model has unique competitive advantages ❑ Path to create superior value through the cycle
Slide 7: Why Nutrien: Best-positioned Company in the Ag Sector
Why Nutrien: 7 Best-positioned Company in the Ag Sector Broad Exposure to Ag Value Chain ~3,500 Agronomists Best positioned to deliver with the strength of our people, products, supply chain, data and technology ~27Mmt Potash, Nitrogen and Phosphate Sales in 2018 Superior Returns with Lower Risk $2.
Slide 8: Why Nutrien: Track Record of Success
Why Nutrien: 8 Track Record of Success • Strong leadership team in place with extensive industry and Integration global experience Delivered on & Synergies Merger Priorities • Achieved $621M of run-rate synergies within 15 months of merger; 24 percent above initial two-year target • $5.3B of net pro
Slide 9: Delivering Superior Shareholder Value: Strong Financial Performance
Delivering Superior Shareholder Value: 9 Strong Financial Performance Higher earnings from merger synergies, Retail growth and improving market fundamentals Adjusted EBITDA1 US$ Billions 5.0 55% 4.0 3.0 2.0 1.0 0.0 Merger Retail NPK Volume Change in 2019F3 2017 Other Synergies Growth Growth Prices2
Slide 10: Leading Global Integrated Ag Solutions Provider
Why Nutrien: 10 Leading Global Integrated Ag Solutions Provider Opportunity to deliver growth across core regions and balance seasonality of earnings North and South America ❑ Higher Asset Utilization Rates LEGEND: RETAIL GRANULATION LOVELAND PRODUCTS ❑ Stable Earnings POTASH AND AFFILIATED FACILITI
Slide 11: Integrated Model Has Unique Advantages
Integrated Model Has Unique Advantages 11 Integrated model can provide operating and financial benefits that no other public ag company can offer Operating Benefits Financial Benefits Higher asset Ability to Stability and Ability to utilization rates leverage supply resiliency allocate capital chain
Slide 12: Operating Benefits: Higher Asset Utilization Rates
Operating Benefits: 12 Higher Asset Utilization Rates Delivering higher operating rates and increased sales through integrated channel Higher Utilization Rates1 Fertilizer Sold Through Retail Percent Increase in Production (2018 vs 2017) Million Tonnes ~40% 9% 3.0 2.1 6% 5% 2017 2018 Distribution $1
Slide 13: Financial Benefits: Provides Stability and Resiliency Through Ag Cycle
Financial Benefits: 13 Provides Stability and Resiliency Through Ag Cycle Stability of Retail earnings supports dividend and provides opportunity to allocate capital more efficiently through the cycle Through-the-Cycle Capital Allocation Nutrien’s Advantage NPK Prices $66 $64 $62 • Enhance balance s
Slide 14: Significant Leverage to Higher Fertilizer Prices
Path to Create Superior Shareholder Value: 14 Significant Leverage to Higher Fertilizer Prices Nutrien has significant leverage to an improvement in fertilizer prices, $25 per tonne increase generates >$650M in EBITDA Midwest Potash Price NOLA Urea Price US$/mt US$/mt 700 600 600 500 500 ~$80/mt ~$7
Slide 15: Significant Growth from Factors in our Control
Path to Create Superior Shareholder Value: 15 Significant Growth from Factors in our Control Expect ~70% adjusted EBITDA growth by 2023 with majority within our control 2018 – 2023F Adjusted EBITDA1 Bridge US$ Billions Retail Organic Retail M&A NPK Price +$25/tonne $0.7-1.0B $6.2-6.9B Key Macro N +$
Slide 16: Business Unit Strategic Plans: Multiple Options to Grow Earnings
Business Unit Strategic Plans: 16 Multiple Options to Grow Earnings Uniquely positioned to deliver growth and lead innovation across multiple businesses due to the power of our ground to grower platform Adjusted EBITDA1 (US$ Billions) $2.0 • Grow via acquisitions and proprietary portfolio by allocat
Slide 17: Pathway to Create Significant Long-term Value
Deliver Superior Shareholder Value: 17 Pathway to Create Significant Long-term Value Expect to generate $22-25B in operating cash flow over the next 5-years with $11-14B to fund growth plans and additional returns to shareholders Cumulative Operating Cash Flow 2019-2023F US$ Billions Unallocated Cap
Slide 18: The Ag Retailer of the Future
The Ag Retailer of the Future Mike Frank, Executive Vice President & CEO of Retail May 28, 2019
Slide 19: Today's Discussion
Today’s Discussion 19 Accelerating Organic Market Ag Retailer of the Growth & Margin Outlook Future Improvement Executing on Acquisition & Driving Retail Consolidation Performance Opportunity May 28, 2019
Slide 20: Market Outlook: Expect Recovery in Crop Input Markets
Market Outlook: Expect Recovery in Crop Input Markets 20 Expect global and US crop input expenditures to return to normal growth rates; further upside with improved crop nutrient prices and/or higher crop prices US Crop Input Expenditure Global Crop Input Expenditure Index US$ Billions Index, 2002-2
Slide 21: Market Outlook: Resilient Retail Financial Performance
Market Outlook: Resilient Retail Financial Performance 21 Retail margins and earnings have grown consistently despite challenging market conditions +4% CAGR $1,500 11% +27% Increase $1,350 $1,206 $1,145 2 10% $1,200 $1,119 $1,091 $1,033 9.6% $986 9.5% $951 9.3% 9% $900 $769 8.6% 8.5% 8% $524 8.3% 8.
Slide 22: Today's Discussion
Today’s Discussion 22 Accelerating Organic Market Ag Retailer of the Growth & Margin Outlook Future Improvement Executing on Acquisition & Driving Retail Consolidation Performance Opportunity May 28, 2019
Slide 23: Ag Retailer of the Future: Enhancing the World's Best Ag Retail Platform
Ag Retailer of the Future: Enhancing the World’s Best Ag 23 Retail Platform Through Consolidation & Digital Leadership We expect to invest $4B-$5B in Ag Retail over the next 5 years to enhance our Retail platform Further Consolidate Retail Industry US, Canada, Australia & Brazil Continue Expand Reta
Slide 24: Uniquely Positioned to Deliver Integrated Solutions
Ag Retailer of the Future : We are Uniquely Positioned to 24 Deliver Integrated Solutions for the Grower of the Future Nutrien is the only Ag-Retailer providing a fully integrated customer offering and digital experience Nutrien Ag Solutions Grower Expectations are Changing… Integrated Customer Expe
Slide 25: Today's Discussion
Today’s Discussion 25 Accelerating Organic Market Ag Retailer of the Growth & Margin Outlook Future Improvement Executing on Acquisition & Driving Retail Consolidation Performance Opportunity May 28, 2019
Slide 26: Accelerating Organic Growth & Margin Improvement
Accelerating Organic Growth & Margin Improvement: 26 Investing in the Infrastructure to Revolutionize Ag Retail Investing in foundational capabilities to drive organic growth CAGR of 2%-3% by 2023 Expect to invest annually $45M in capital and $60M-$70M in operating expenses across four organic growt
Slide 27: Digital Experience: Revolutionizing Agriculture
Digital Experience: Revolutionizing Agriculture 27 with the Industry’s only Integrated Digital Platform Nutrien Ag Solutions is harnessing science and technology to help growers achieve the best outcomes on their farms Three Pillars of our Digital Strategy 2023 KPIs Crop Planning Digital Agronomy Om
Slide 28: Supply Chain: Optimizing the Largest Distribution Network in Ag
Supply Chain: Continuing to Optimize the Largest 28 Distribution Network in Ag Our supply chain is uniquely positioned to efficiently service the grower of the future Unparalleled Reach Driving Efficiencies & Customer Value by & Asset Base Centralizing Key Cost Drivers >1,700 Locations Optimize inve
Slide 29: Marketing: Customer-Centric Offerings for Growers
Marketing: Driving Comprehensive and Customer-Centric Offerings for Growers 29 Driving value through differentiated customer experience, portfolio optimization and industry-leading analytics Innovation & Commercial Commercial Proprietary Development Execution & Products Services Accelerate proprieta
Slide 30: Nutrien Financial: Customized Solutions for Customers
Nutrien Financial: Building Customized Solutions that 30 Support Customer Retention and Business Growth Strengthening customer relationships through unique value-enhancing and scalable financial solutions that enable us to grow with our customers Significant Market Opportunity Value Creation $2B In
Slide 31: Today's Discussion
Today’s Discussion 31 Accelerating Organic Market Ag Retailer of the Growth & Margin Outlook Future Improvement Executing on Acquisition & Driving Retail Consolidation Performance Opportunity May 28, 2019
Slide 32: Driving Value Through Highly Accretive Retail Acquisitions
Build the Channel: Driving Superior Value Creation 32 Through Highly Accretive Retail Acquisitions Targeting ~$100M of EBITDA per year through accretive acquisitions & greenfields Structural Trends Supporting Consolidation ✓ Investments in digital/technology will be necessary to service grower custo
Slide 33: Drive Value Enhancing Footprint Growth in Core Markets
Build the Channel: Drive Value Enhancing 33 Footprint Growth in Core Markets Demonstrated success executing on accretive Retail acquisition opportunities in 2018/19 Core Geographies United States Execute on significant roll-up opportunity & drive market share to 25% to 30% United States Western Cana
Slide 34: Expand our Business in Brazil
Build the Channel: Expand our Business in Brazil - 34 the Fastest Growing Major Ag Market in the World Expect to reach >$100M EBITDA from Brazil by 2023 UNIQUE GROWTH STRATEGY CURRENT SCALE IN BRAZIL 7 retail locations Expand Retail Presence & Distribution 3 blending/formulation facilities Footprint
Slide 35: Proprietary Products: Acquisitions of Content Platforms
Proprietary Products: Uniquely Positioned to Drive 35 Substantial Value Through Acquisitions of Content Platforms Our proprietary portfolio differentiates our product offering, enhances margins and creates an integrated business model US Proprietary Products Focus Areas1 Seed Proprietary as a % of T
Slide 36: Today's Discussion
Today’s Discussion 36 Accelerating Organic Market Ag Retailer of the Growth & Margin Outlook Future Improvement Executing on Acquisition & Driving Retail Consolidation Performance Opportunity May 28, 2019
Slide 37: Retail Financials: 2023 Business Targets
Retail Financials: 2023 Business Targets 37 Executing on strategic initiatives will drive operational performance 2016 Investor Day Retail Metrics 2018 2019 Target 2023 Target Targets for 2020 Total Retail EBITDA Margin 9.5% to 10.5% 10% 10% >10.5% US Retail EBITDA Margin - 10% 10.5% >11% Average No
Slide 38: Retail Financials: Delivering Stable Long-term Earnings Growth
Retail Financials: Delivering Stable Long-term 38 Earnings Growth We expect to drive significant growth and value through our strategy to build the ag retailer of the future $2.2 Expected EBITDA range of $1.8B to $2.0B by 2023 $2.0 2023 EBITDA Target Retail EBITDA (USD Millions) $1.9B $1.8 Growth Fa
Slide 39: The Ag Retailer of the Future – Our Digital Platform
The Ag Retailer of the Future – Our Digital Platform Mike Frank, Executive Vice President & CEO of Retail MAY 28, 2019
Slide 40: Transforming Ag Retail Through Digital Leadership
Transforming Ag Retail : Enhancing the World’s 40 Best Ag Retail Platform Through Digital Leadership Digital will accelerate our ability to drive value across our entire business In House Proprietary Financing Products In House Financing Full Suite Extensive of Crop Distribution Inputs Network Agron
Slide 41: Integrated Digital Platform: Focused on Areas that Support the Grower
Integrated Digital Platform: Focused on 3 Areas that 41 Support the Grower Throughout the Growing Year We are strategically developing digital capabilities to support the grower at each stage of the season MONITOR & PLAN PRE-PLANTING PLANT HARVEST PROTECT FARM PLANNING DIGITAL AGRONOMY OMNICHANNEL M
Slide 42: Grower Journey Example: Digital Agronomic Advice for Seed Selection
Grower Journey Example: Digital Agronomic Advice 42 for Seed Selection PLAN PRE-PLANTING PLANT Digital Capabilities: Grower Benefit: Advanced data science unlocks optimal grower decision-making Nutrien Benefit: New lever to drive seed market share May 28, 2019 Source: Nutrien
Slide 43: Grower Journey Example: Fall Fertilizer Application
Grower Journey Example: Fall Fertilizer Application 43 Supported by Digital Fertility Tools PLAN PRE-PLANTING Digital Capabilities: Grower Benefit: Customized prescription to optimize fertilizer spending Nutrien Benefit: Increased sales of fertilizers and applications driven by increased fertility p
Slide 44: Grower Journey Example: Optimal Planting Date
Grower Journey Example: Optimal Planting Date 44 Informed by Digital Tools PLAN PRE-PLANTING Digital Capabilities: Grower Benefit: Helps grower get into his fields faster when each day matters Nutrien Benefit: Builds grower engagement and helps our crop consultants better understand grower’s timing
Slide 45: Grower Journey Example: In Season Pest Identification
Grower Journey Example: In Season Pest 45 Identification and Management MONITOR & PLAN PRE-PLANTING PROTECT Digital Capabilities: Grower Benefit: Protection for crops at critical growth stage Nutrien Benefit: Increased sales of product & application by providing grower scouting reports May 28, 2019
Slide 46: Grower Journey Example: Comprehensive Review Post-Harvest
Grower Journey Example: Comprehensive Review 46 of Results Post-Harvest MONITOR & PLAN PRE-PLANTING HARVEST PROTECT Digital Capabilities: Grower Benefit: Access to data & analysis in a single, easy-to- use interface allows the grower to understand their profitability Nutrien Benefit: Opportunity to
Slide 47: Integrated Digital Platform: Brings Value to the Grower Throughout the Year
Integrated Digital Platform: Brings Value to the 47 Grower Throughout the Year With our focused approach, we’ve created multiple digital touchpoints with the grower that strengthen our trusted advisory relationship MONITOR & PLAN PRE-PLANTING PLANT HARVEST PROTECT FARM PLANNING DIGITAL AGRONOMY OMNI
Slide 48: Digital Platform 2019: Strong Execution and Significant Progress
Digital Platform 2019: Strong Execution and 48 Significant Progress Since Launch Early Indicators: Strong & growing engagement with growers & Nutrien crop consultants $174M online $32M digital orders payments made (5.9% of Q2 total) 58% of Nutrien Ag Solutions revenue represented by customers with d
Slide 49: Future Vision: We'll Continue to Build the Platform
Future Vision: We’ll Continue to Build the Platform 49 by Focusing on Key Value Drivers for the Grower Areas of Future Focus: Integration with Nutrien Financial Enhanced agronomic insights across seed, fertility and crop protection Greater convenience and utility for the grower Commercial optimizati
Slide 50: Value Unlock: In Helping Growers Succeed, We'll Unlock Value
Value Unlock: In Helping Growers Succeed, We’ll 50 Unlock Tremendous Value for Nutrien We have the capability to build out the industry’s only integrated digital platform MONITOR & PLAN PRE-PLANTING PLANT HARVEST PROTECT Customer Share of Margin Grower Organic + + + = Acquisition Wallet Expansion Su
Slide 51: Driving Growth: Digital's Impact on Our Business
Driving Growth: Digital’s Impact on Our Business 51 Results will Continue to Grow in the Coming Years As growers continue to integrate our digital platform into their farm operations, we’ll unlock huge financial value for Nutrien 2023 KPIs Total Platform Generated Revenue (% of total sales)1 >50% Gr
Slide 52: Potash – World's Largest Underground Soft Rock Miner
Potash – World’s Largest Underground Soft Rock Miner & Potash Industry Leader Susan Jones, Executive Vice President & CEO of Potash May 28, 2019
Slide 53: Potash: 2018 Review, Advantage, 5-Year Plan
Potash 53 Nutrien’s Potash 2018 Review – Nutrien’s 5-Year Next Generation Advantage Proven Execution Plan Potash May 28, 2019
Slide 54: Nutrien's Potash Advantage
Nutrien’s Potash Advantage 54 The potash industry has a favorable market structure and Nutrien is best positioned to continue to create value in this environment K Demand Scale • Strong, stable demand growth; 2.5%-3.0% • World’s largest potash producer long-term;1 highest of the primary crop • Integ
Slide 55: 2018 Review - Track Record of Successful Execution
2018 Review - Nutrien has a Track Record of 55 Successful Execution $80 million of run-rate synergies achieved 1 +1.3 Mmt Potash Adjusted EBITDA US$ Millions 13.0 11.7 +48% Sales Volumes $1,606 Million Tonnes 2017 2 2018 +17% $1,083 $205 $175 Net Selling Price US$/MT 2 2017 2018 -9% $66 $60 Cash Cos
Slide 56: Expect Demand to Grow at Historical Rates of 2.5-3.0%
Expect Demand to Grow at Historical Rates of 56 2.5-3.0% Over the Next 5 Years We expect a stable pricing environment and agronomic need to drive strong potash consumption growth, particularly in offshore markets Potash Fertilizer Consumption Growth Potash Shipment Growth 2013-2018 CAGR1 2019-2023F2
Slide 57: Positioned to Sell 15Mmt with Upside to 17Mmt in 2023
Nutrien is Positioned to Sell 15Mmt with 57 Upside to 17Mmt in 2023 5Mmt of excess production capability ready to sell into the market when needed; integrated supply chain with platform for growth Nutrien Potash Sales Million Tonnes KCl Upside to 17Mmt • Demand surpasses expectations 17Mmt • New sup
Slide 58: Balanced Global Potash Supply & Demand Growth
Balanced Global Potash Supply & Demand Growth 58 Balanced potash S&D; NTR volume upside driven by global production losses, delayed projects and/or high demand Global Supply & Demand Growth1 Million Tonnes KCl Relatively slow Above-average demand Demand growth supported by demand growth met by growt
Slide 59: Established Potash Supply Chain Supporting Our Network
Established Potash Supply Chain Supporting Our 59 Reliable and Flexible Network We are the most reliable potash supplier in North America with an extensive network to domestic and offshore markets; positioned to flex our network on short notice North America Potash Network Offshore via Canpotex 6 lo
Slide 60: 5Mmt of Paid-For Production Growth
5Mmt of Paid-For Production Growth 60 Existing mine network has the capacity to increase production to 18Mmt Potash Operational Capability Millions of Tonnes 18Mmt +5Mmt 12.8Mmt 2018 2023F May 28, 2019 Source: Nutrien
Slide 61: Expects to be the Lowest Cost Potash Network in the World
Nutrien Expects to be the Lowest Cost Potash Network 61 in the World Expect to reduce our cash production costs to $50-$55/mt Potash Production Potash Cash Cost of Product Manufactured2 Millions of Tonnes US$ per Tonne 20 $80 $74 17Mmt 16 15Mmt $70 12.8Mmt 12.2Mmt 12 10.8Mmt $66 $60 $60 8 $55 $50 4
Slide 62: Next Generation With Three Key Initiatives
Moving our Potash Business Into the Next 62 Generation With Three Key Initiatives Operational excellence Technology Leadership Digitized operations May 28, 2019 Source: Nutrien
Slide 63: Next Generation Potash
Next Generation Potash 63 Our Next Generation Potash initiatives have an expected IRR well in excess of 25% under all foreseeable scenarios Enables Operational excellence and funds Amplifies and Foundation of operational excellence Extract Full Value creates new capabilities World class safety Reduc
Slide 64: Next Generation Potash Initiatives to Drive Cost Reduction
Next Generation Potash Initiatives to Drive $7-$12/mt 64 Cost Reduction Expect our Next Generation Potash initiatives to improve efficiencies and drive costs down Potash Cash Cost of Product Manufactured1 US$ per Tonne $5 $2 $4 $60 $3 $7 $55 $12 $50 2 2018 Inflation Increased Next Generation 2023F V
Slide 65: Initiatives Are Well Underway; Seeing Results
Initiatives Are Well Underway; We Are Seeing 65 Results and Opportunity Beyond 2023 By 2023F Redefines Leverage Our mining methods World-Class Expertise >5MT Enhances optimize latent capacity an adaptive & flexible supply chain $5-10/MT ________________ Accelerate Accomplishments lower cash COPM1 Op
Slide 66: Potash Expected to Generate $2.3B-$2.7B of EBITDA in 2023
Potash Expected to Generate $2.3B-$2.7B of 66 EBITDA in 2023 Expect to generate $11B-$12B total EBITDA in the next 5 years 3 Potash Adjusted EBITDA US$ Billions 17Mmt $3.1 13.0Mmt 11.7Mmt 15Mmt $2.7 $2.7 Sales Volumes Million Tonnes $2.3 1 4 $1.6 $1.9 2017 2018 2023F $1.1 $66 $60 $55 Cash Cost of Pr
Slide 67: Beyond 18Mmt – Evaluating Additional Brownfield Expansions
Beyond 18Mmt – Evaluating an Additional 5Mmt of 67 Brownfield Expansions Ability to add additional capacity for $500-$700/mt2 ; can be brought on in increments as needed, cheaper and quicker than any other project currently being discussed Greenfield/Brownfield Capital Intensity Potash Operational C
Slide 68: $11B to $12B EBITDA generated 2019-2023F
Nutrien Expects to Have the Safest, Most Reliable, 68 Flexible and Efficient Operation in the World $11B to $12B EBITDA generated 2019-2023F Favorable market structure; Nutrien best positioned to create value Expect potash demand CAGR of 2.5 to 3.0 percent in a stable pricing environment By 2023F, N
Slide 69: Potash Appendix
- q Potash Appendix a MR Nutrien Feeding the Future~ www.nutrien.com
Slide 70: Global Potash Deliveries by Region
Global Potash Deliveries by Region 70 Global deliveries forecast at approximately 75.5 million tonnes in 2023 with upside potential supported by steady consumption growth in key markets Million Tonnes KCl 2019-2023F CAGR 20 High-case Demand 2.4% 2019-2023F CAGR Base-case Demand 2019-2023F CAGR 3.4%
Slide 71: Global Potash Operational Capability Changes
Global Potash Operational Capability Changes 71 Global Potash Operational Capability & Demand Growth (Excluding Nutrien) Million Tonnes Potash Region 2019F 2020F 2021F 2022F 2023F North America 0.7 0.2 0.2 0.3 0.1 FSU 0.5 2.5 1.2 0.9 1.4 Europe (0.4) - (0.1) - - Latin America - (0.1) (0.1) - (0.3) A
Slide 72: Nitrogen & Phosphate: Enhancing our Competitive Position
Nitrogen & Phosphate: Enhancing our Competitive Position Raef Sully, Executive Vice President & CEO of Nitrogen & Phosphate May 28, 2019
Slide 73: Nitrogen & Phosphate: Review, Assets, 5-Year Plan
Nitrogen & Phosphate 73 High Return Nutrien’s High 2018 Review – Nutrien’s Nitrogen Quality Assets Proven Execution 5-Year Plan Investments May 28, 2019
Slide 74: Well Positioned Assets and a Diverse Footprint
Nitrogen and Phosphate Have Well Positioned 74 Assets and a Diverse Footprint North American Footprint $1.5B 2018 EBITDA2 14 Mmt Combined Nitrogen & Phosphate Sales Capacity (current) LEGEND: 7.8 Mmt Gross ammonia1 Nitrogen ESN 1.7 Mmt P205 Granulation Phosphate NOTE: European distribution and equit
Slide 75: Strong Asset Base Provides Significant Cash Flow
Strong Asset Base Provides Significant Cash Flow 75 and Multiple Growth Opportunities Strong earnings growth underpinned by world-class assets EBITDA 1 2018 Sales Volumes1 US$ Millions Million Tonnes Phosphate Nitrogen 4.3 Nitrogen 3.3 3.0 +41% Fertilizer, $1,470 Industrial, 54% 46% $241 $1,042 Ammo
Slide 76: Nitrogen & Phosphate Strategy
Nitrogen & Phosphate Strategy 76 Targeted Expansion and Operational Excellence Execute Synergy plan Upgrade of Existing Asset Base ADVANTAGES Large Scale, Low Cost Clear Strategy, Teamwork Attractive Economics Producer and Complimentary Assets Backed by Route to Market ➢ Increase capacity ➢ Optimize
Slide 77: Nitrogen
Nutrien Feeding the Future Nitrogen
Slide 78: Global Nitrogen Supply & Demand Tightening
Market Perspective: 78 Global Nitrogen Supply & Demand Tightening Limited new capacity under construction as prices remain below greenfield replacement cost levels Global Supply & Demand Growth1 Million Tonnes, Excl. China Slow capacity growth outside Capacity additions in the US, Slow capacity addi
Slide 79: Competitive Position: Low Cost Assets With Regional Advantages
Competitive Position: 79 Low Cost Assets With Regional Advantages Diverse asset base located in low cost natural gas regions generates exceptional margins and cash flow Nutrien Ammonia Production - 2018 Urea Cash Cost & Price Comparison Million Tonnes US$/MT 8 $500 Other Cost Gas Cost 2019 Gas Forec
Slide 80: Nitrogen Operational Excellence: Driving Efficiency
Nitrogen Operational Excellence: 80 Driving Efficiency to Enhance Value Capture Numerous opportunities to sustainably improve utilization 1 Ammonia Operating Rate Percent 2 +190 kmt ammonia 96% or +$70M 94% 2 92% +330 kmt urea EBITDA 89% KEY INITIATIVES 1. Reliability Improvement Program 2. Retail f
Slide 81: Nitrogen Operational Excellence: Controllable Costs
Nitrogen Operational Excellence: 81 Delivering Improvements in Controllable Costs Improved cost efficiency to be achieved through increased utilization and cost control Ammonia Controllable Cash Cost of Product Manufactured1,2 US$ per MT $4 $1 $47 $3 $2 $3 $42 $43 $4 $41 3 2013-2017 2018 Inflation I
Slide 82: Execute Synergy Plan: Leveraging Supply System and Retail Network
Nitrogen Execute Synergy Plan: 82 Leveraging Supply System and Retail Network North American Production Facility Map Production assets are located in- 1 market with logistical advantage Access to low cost and reliable 2 natural gas Benefit from sourcing flexibility in 3 desirable mid-west Ag markets
Slide 83: Nitrogen Targeted Expansion Pipeline
Nitrogen Targeted Expansion 83 Pipeline of Low-cost, High-return Projects Advancing smaller projects that are expected to add $120M of incremental EBITDA; reviewing larger projects not in our current outlook Current Projects Projects Under Estimated Project IRRs1 Percent Next 24 Months Review >20% ~
Slide 84: Phosphate
Nutrien Feeding the Future Phosphate
Slide 85: Phosphate Strategic Focus: Portfolio Optimization
Phosphate Strategic Focus: 85 Portfolio Optimization Optimizing footprint and delivering on synergies with replacement of Western Sahara rock with integrated production reducing P205 cost by ~$80/mt Phosphate Controllable Cash COPM1,2 US$ per mt (P2O5) • Repositioned portfolio by moving from three p
Slide 86: Phosphate Strategic Focus: Finish Executing Synergy Plan
Phosphate Strategic Focus: 86 Finish Executing Synergy Plan On Track to Deliver $80M in incremental EBITDA 1 • Increase capacity utilization to 92% Optimize Portfolio • Focus on highest margin products & markets • Leverage synergies with Retail 2 • Use existing excess capacity at White Springs to of
Slide 87: Anticipate $1.9-2.6B of EBITDA by 2023
Nitrogen & Phosphate Outlook: 87 Anticipate $1.9-2.6B of EBITDA by 2023 Increasing EBITDA by over 25% without market price increase Nitrogen & Phosphate EBITDA US$ Billions Phosphate Nitrogen $2.6 1 $2.3 $0.3 $1.9 $0.4 $2.3 $1.5 $0.3 $1.9 1 $0.3 $1.6 $1.0 $0.2 $1.2 $0.8 2017 2 2018 2023F 2023F 2023F
Slide 88: $9.5B to $11.5B EBITDA generated 2019-2023F
Enhancing Our Competitive Position 88 $9.5B to $11.5B EBITDA generated 2019-2023F Nutrien has geographic advantages; located in low gas cost regions and near large nitrogen consuming markets, in market away from river Extensive supply chain coupled with Nutrien Retail network provides outlet for hig
Slide 89: Strategically Allocating Capital to Deliver Long-term Shareholder Value
Strategically Allocating Capital to Deliver Long- term Shareholder Value Pedro Farah – CFO May 28, 2019
Slide 90: Key Messages with a CFO Lens
Key Messages with a CFO Lens 90 ❑ Best-positioned ❑ Integrated model has ❑ Path to create superior company in the unique competitive value through the agriculture sector advantages cycle
Slide 91: Redeploying Capital from Divestments into Growth and Returns
Redeploying Capital from Divestments into Quality 91 Growth and Returning Excess to Shareholders 2018 Capital Allocation US$ Billions $0.3 $0.4 1.6x $1.8 Leverage at Year-end2 $5.3 $2.1 $1.1 $2.7 $2.1 $1.0 Operating Sustaining Dividends Divestment Investing Business Share “Unallocated” Cash Flow Cap
Slide 92: Key Messages with a CFO Lens
Key Messages with a CFO Lens 92 ❑ Best-positioned ❑ Integrated model has ❑ Path to create superior company in the unique competitive value through the agriculture sector advantages cycle
Slide 93: Integrated Model Provides a Lower Risk Profile
Nutrien’s Integrated Model Provides Investors with 93 a Lower Risk Profile Adjusted EBITDA Volatility Relative Share Price Volatility Volatility calculated as 1 standard deviation log normal quarter over last year 12-month put option-implied volatility is a beta-like measure of the share same quarte
Slide 94: Capital Allocation Strategy & Integrated Operating Model
Our Capital Allocation Strategy & Integrated Operating 94 Model are Foundational for Differentiated, Superior Returns Nutrien’s Capital Allocation Strategy: Creating Value for Shareholders • Prioritizing free cash flow between growth & return to shareholders Compete • Minimum hurdle rate of 12% (cou
Slide 95: Sustaining our Assets at the Same Rate as Depreciation
Sustaining our Assets at the Same Rate as 95 Depreciation Robust bottom-up benchmarking exercise underlies business sustaining capital spend. Sustaining capital is expected to be in line with core depreciation. US$ Billions Increase with Retail M&A and incremental potash volumes $1.8-1.91 Amortizati
Slide 96: Cash Flow from Retail Provides Stable, Growing Dividend
Cash Flow from Retail will Provide Shareholders 96 with a Stable, Predictable & Growing Dividend • Companies that consistently grow dividends outperform the market. • NTR 2019 dividend represents ~75% of Retail EBITDA and ~85% of Retail FCF. Dividends Paid & Yield (Peer yields as of May 23, 2019) ~$
Slide 97: Balance Sheet is Strong and Provides Strategic Optionality
Nutrien’s Balance Sheet is Strong and will Provide 97 Strategic Optionality in the Future Strategic actions will grow EBITDA and balance sheet capacity over time Net Debt & Forecasted Total Financial Capacity US$ Billions $3.0B $3.9B $5.5-5.9B Adj. EBITDA3 Adj. EBITDA3 Adj. EBITDA3 Additional $14-20
Slide 98: Key Messages with a CFO Lens
Key Messages with a CFO Lens 98 ❑ Best-positioned ❑ Integrated model has ❑ Path to create superior company in the unique competitive value through the agriculture sector advantages cycle
Slide 99: Prioritizing Investment Opportunities to Drive Long-Term Value
Strategically Prioritizing Investment Opportunities to 99 Drive Long-Term Value Creation Drivers of Return Nutrien-to-Date on Capital Success 2019-2023 • Retail growth & accretive M&A Quality • Retail M&A • Incremental potash & nitrogen Growth volumes • Retail margin expansion Enhance • Merger syner
Slide 100: Retail Growth: Consolidation, Digital Leadership and Margin Expansion
Retail Growth will be Based on Consolidation, 100 Digital Leadership and Margin Expansion Retail – Adjusted EBITDA Forecast1 US$ Billions Retail – Return on Capital Drivers Organic Inorganic • Targeting 25-30% US $1.8-2.0 Quality market share & growth in Growth other core geographies $0.4-0.6 $1.2 ~
Slide 101: Potash Plans to Optimize our Operations and Network
Potash Plans to Optimize our Operations and 101 Network Potash – Adjusted EBITDA Forecast3 US$ Billions Potash – Return on Capital Drivers Controllable (15Mmt sales volume & costs) Price (15Mmt, +$25/mt) • EBITDA growth of $0.7- Quality 0.8B at flat prices Growth • 5Mmt of readily available $2.3-2.7
Slide 102: Nitrogen & Phosphate Plans Optimization of Network
Nitrogen & Phosphate Plans Optimization of 102 Network and Highly Accretive Investments N&P – Adjusted EBITDA Forecast2 US$ Billions N&P – Return on Capital Drivers Controllable (volume & cost) Price (+$25-50/mt N; +$25/mt P) • Brownfield expansions with $1.9-2.61 Quality +20% IRR add >0.5 Mmt Growt
Slide 103: Significant EBITDA Upside Over the Next 5 Years
Significant EBITDA Upside with Quality Growth, Enhanced 103 Margin, and Asset Efficiency Over the Next 5 Years 2018 – 2023F Adjusted EBITDA1 Bridge US$ Billions Retail Organic NPK Price +$25/tonne Retail M&A N +$50/tonne; P&K Price +$25/tonne $0.7-1.0B $6.2-6.9B $1.0-1.2B $5.5-5.9B $0.6-0.8B $3.9B N
Slide 104: Positioned to Reinvest and Return Meaningful Cash to Shareholders
Nutrien is Positioned to Reinvest in its Businesses 104 AND to Return Meaningful Cash to Shareholders Cumulative Operating Cash Flow 2019-2023F US$ Billions Unallocated Capital or $22-25B $6-8B Additional Returns to Additional cash flow from Shareholders rising NPK prices Compete for Capital Retail
Slide 105: Strong Position to Deliver on Growth and Enhance Shareholder Returns
Strong Position to Deliver on Growth and Enhance 105 Shareholder Returns Nutrien has an incredibly strong balance sheet and low 1 risk profile 2 Clearly defined capital allocation strategy Significant quality growth & margin enhancement 3 opportunities 4 Opportunity for significant returns to shareh
Slide 106: Key Takeaways & Wrap-up
Key Takeaways & Wrap-up Chuck Magro – President and CEO May 28, 2019
Slide 107: Bringing It All Together: Pathway to Generate Superior Long-term Value
Bringing It All Together: 107 Pathway to Generate Superior Long-term Value Best-positioned Integrated model has Path to create superior company in the Ag unique competitive value through the cycle Sector advantages • Higher asset utilization • Broad exposure to ag rates • Expect to generate value ch
Slide 108: Broader Impact: Focused on Doing the Right Things
Broader Impact: 108 Focused on Doing the Right Things Nutrien has a unique opportunity to focus on improvements across the value chain. We will be finalizing our key Sustainability metrics and targets later in 2019. Lead next wave of innovation and sustainability in agriculture Protect the planet Ch
Slide 109: For further information please visit Nutrien's website
For further information please visit Nutrien’s website at: www.nutrien.com Follow Nutrien on: twitter.com/nutrienltd facebook.com/nutrienltd linkedin.com/company/nutrien