Slide 1: Investor Presentation
Investor Presentation June 9, 2020
Slide 2: Forward-Looking Statements Advisory
Forward-Looking Statements Advisory 2 Certain statements and other information included in this document constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statements are often accompanied by wo
Slide 3: Nutrien is a Premium Ag Investment with Multiple Levers to Drive Significant Shareholder Value
Nutrien is a Premium Ag Investment with Multiple 3 Levers to Drive Significant Shareholder Value Retail business that provides stability and exposure to multiple growth platforms Fertilizer markets reaching structural lows with significant upside potential Nutrien has one of the strongest balance sh
Slide 4: Retail Business Continues to Deliver Growth and is Becoming Increasingly Diversified
Retail Business Continues to Deliver Growth and 4 is Becoming Increasingly Diversified Retail EBITDA US Billions • Delivering earnings growth $1.4-$1.5B Non-US Retail through the cycle, from organic US Retail growth (incl. investments in ~30% technology, private label) & accretive acquisitions $1.0B
Slide 5: Retail is Differentiated On Multiple Fronts That Will Help Unlock Organic Growth
Retail is Differentiated On Multiple Fronts That Will 5 Help Unlock Organic Growth And Value Creation Leading Online Platform ~40% Total Share of Digital Sales of >$300M Total Digital Platform Sales Available Product Lines through May 2020 Growing Proprietary Products Portfolio >$2B Total Proprietar
Slide 6: Crop Prices Have Weakened But Improving Market Conditions Expected To Lend Support
Crop Prices Have Weakened But Improving Market 6 Conditions Expected To Lend Support Crop Prices Index: 2005 = 100 We see a number of positive Ag 500 Corn Soybean developments emerging: • US corn planted acreage likely to be 400 well below USDA forecast 97M acres. • Recent improvement in ethanol 300
Slide 7: Fertilizer Prices Near Historical Lows With Multiple Catalysts Emerging
Fertilizer Prices Near Historical Lows With Multiple 7 Catalyst Emerging That Could Lead To Recovery Fertilizer Prices Index: 2005 = 100 A number of positive fertilizer developments are emerging: 500 NOLA Urea US DAP Brazil Potash • New potash spot markets are higher over past few weeks. Canpotex fu
Slide 8: Multiple Indicators Support Our Belief That Potash Markets Are At Or Near Bottom
Multiple Indicators Support Our Belief That Potash 8 Markets Are At Or Near Bottom Of The Cycle Levels We believe ~6Mmt of operational capability is cash negative at prices below $200/mt CFR; operational rates are posed for a recovery Potash Cost Curve, Cash Cost1 Global Potash Utilization (operatio
Slide 9: Nutrien Expects To Benefit From A Cyclical Recovery In Market Prices And Higher Sales Volumes
Nutrien Expects To Benefit From A Cyclical Recovery In 9 Market Prices And Higher Sales Volumes At current pricing levels, a sizeable portion of production is at negative margins; Nutrien further expects to benefit in 2020 from investment in new capacity Global Urea Cost Curve NTR Nitrogen Sales Vol
Slide 10: Investing At The Bottom: Stable And Growing Dividend And Strong Free Cash Flow
Investing At The Bottom: Stable And Growing 10 Dividend And Strong Free Cash Flow Strong free cash flow generation supports a stable and growing dividend, which at a current yield of 4.7%1 provides a stable rate of return while shareholders wait for price recovery. 2020 Capital Allocation Dividends
Slide 11: Nutrien Providing Sector-leading Returns Of Capital
Nutrien Providing Sector-leading Returns Of Capital 11 NTR returned $6.1B1 to shareholders by way of dividends and share repurchases and possesses one of the highest dividend yields among its peers at 4.7%2 Share Repurchases and Dividends as a % of Market Cap3 (Percent) 28% NTR Peers 22% 17% 11% 12%
Slide 12: Investing At The Bottom: Positioned To Capitalize On A Fertilizer Price Rebound
Investing At The Bottom: Positioned To Capitalize 12 On A Fertilizer Price Rebound Nutrien’s wholesale business has significant leverage to fertilizer prices, which is expected to provide a catalyst for earnings growth as prices rebound from bottom of the cycle levels Price Drivers and Earnings Sens
Slide 13: Nutrien's Sustainability Strategy
Nutrien’s Sustainability Strategy 13 “Our integrated sustainability strategy is addressing our most material ESG risks and providing solutions for a growing world.” Nutrien President and CEO, Chuck Magro June 9, 2020 Source: Nutrien
Slide 14: Appendix
Nutrien Feeding the Future” Appendix
Slide 15: Leading Global Integrated Ag Solutions Provider
Leading Global Integrated Ag Solutions Provider 15 Nutrien has a unique global footprint and well positioned assets North and South America >500,000 Grower accounts worldwide 40% Digitally enabled Retail sales LEGEND: in Q1’201 RETAIL GRANULATION LOVELAND PRODUCTS ~25% POTASH AND AFFILIATED FACILITI
Slide 16: US Corn & Soybean Planting is Progressing Well
US Corn & Soybean Planting is Progressing Well 16 Projecting acreage rebound in both corn and soy this season, fast pace of planting supports the increased acreage from 2019 US Corn & Soybean Acreage US Corn & Soybean Planting Progress Million Acres % Complete1 2020 97% 94-96 97 90 90 90 90 89 85-79
Slide 17: Grower Cash Margins
Grower Cash Margins 17 Grower margin supported by affordable crop input prices and favorable Brazilian FX Key Crop Grower Cash Margins Local Currency Margin/Acre US Corn US Soybean US Wheat US Cotton CDN Canola Brazil Soybean 400 2,000 350 1,600 300 250 1,200 200 150 800 100 400 50 0 0 -50 2020F 202
Slide 18: Global Crop Price Trends
Global Crop Price Trends 18 Crop prices are improving as the market gains clarity on US crop production and improved market conditions for palm oil Key Crop Prices US$/bushel (unless otherwise indicated) Chicago Soybeans 5.00 Chicago Corn 9.50 4.50 9.00 4.00 8.50 3.50 8.00 3.00 7.50 Palm Oil (MYR/to
Slide 19: Potash: Historically Strong Margins And Volume Growth Throughout The Nutrient Cycle
Potash: Historically Strong Margins And Volume 19 Growth Throughout The Nutrient Cycle Strong potash margins supported by our low-cost mines and extensive distribution network Sales Volume Gross Margin1 Million Tonnes KCl Percent Sales Volumes Gross Margin % of Net Sales 14 90% 80% 12 70% 10 60% 8 5
Slide 20: Global Potash Deliveries By Region
Global Potash Deliveries By Region 20 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 21: Tightening Global Nitrogen Supply & Demand
Tightening Global Nitrogen Supply & Demand 21 Expect improved global demand and limited new capacity lead to a tighter supply/demand balance in 2020 and over the medium-term Global Nitrogen S&D Global Utilization Rate1 Million Tonnes Nitrogen Percent 180 Demand Operational Capability 100% 160 95% 14
Slide 22: Retail Network Optimization – Tuck-ins, Targeted Builds & Closures
Retail Network Optimization – Tuck-ins, Targeted 22 Builds & Closures Global Tuck-in Acquisitions1,3 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total # of Locations Acquired1 33 59 22 32 26 76 44 53 64 409 Annual Sales1 $210 $477 $128 $192 $190 >$500 ~$300 ~$400 ~$450 >$2,800 (US millions) Annual
Slide 23: Nutrien is Strengthening its Retail Business: Strategic Transactions
Nutrien is Strengthening its Retail Business: 23 Strategic Transactions Nutrien is growing geographic footprint and Ag solutions offerings Environmentally sustainable soil and plant Actagro is aligned with Nutrien’s strategy to invest in health and tech higher-margin proprietary products that prov
Slide 24: Significant Opportunity for Further US Retail Acquisitions
Significant Opportunity for Further US Retail 24 Acquisitions NTR has ~21% market share with only 10% of the facilities CHS, 3% Wilbur-Ellis, 4% Growmark, 5% Simplot Retail, 6% Co-ops, 30% Helena, 7% Independents, 24% Expect to execute on 21% roll-up opportunity & target to expand business by to 25%
Slide 25: Retail: A Leading Agricultural Solutions Provider
Retail: A Leading Agricultural Solutions Provider 25 Broad Crop Diversity Complete Ag Solutions Offering Proprietary Products Revenue by Crop (2019) Gross Margin (2019) Gross Margin1 Percent US$ Billions US$ Millions 800 $3.2B Merchandise 3% 700 All Other, 11% 600 Services/Other 18% Cotton, 7% Corn,
Slide 26: Nutrien Ag Solutions Digital Platform: Progress Update and Future Plans
Nutrien Ag Solutions Digital Platform: 26 “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 27: Pathway to ESG Improvement
Pathway to ESG Improvement 27 Our strategy will enable material improvements to Nutrien’s ESG performance in the areas that rank most important to shareholders Improved ESG 3rd-Party ESG Research, Assessing ESG Risks Disclosure & Ratings & Rankings Associated Metrics Evaluating industry risk, Improv
Slide 28: Nutrien: Focused on Sustainable Agriculture
Nutrien: Focused on Sustainable Agriculture 28 What have we done? Developed baseline 2018 scope 1 & 2 GHG emissions and obtained limited external assurance from KPMG Assessing our scope 3 GHG emissions inventory and are continuing to evaluate Developing a comprehensive ESG and climate strategy
Slide 29: Thank You!
Thank You! For further information, visit: www.nutrien.com twitter.com/nutrienltd facebook.com/nutrienltd linkedin.com/company/nutrien youtube.com/nutrien