Nutrien (NTR) 6-K Nutrien Reports Record Earnings

Exhibit 99.2

NUTRIEN LTD.

MANAGEMENT’S DISCUSSION AND ANALYSIS

AS AT AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2021

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 9, 2021. 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 2020 Annual Report dated February 18, 2021, which includes our annual audited consolidated financial statements and MD&A, and our Annual Information Form, each for the year ended December 31, 2020, 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 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 (“SEC”).

This MD&A is based on the Company’s unaudited interim condensed consolidated financial statements as at and for the three and six months ended June 30, 2021 (“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 forward-looking statements which are described in the “Non-IFRS Financial Measures” and the “Forward-Looking Statements” sections, respectively.

Market Outlook

Agriculture and Retail

• Crop prices continue to be supported by strong global demand and less than expected supply, resulting in historically low global inventory and strong grower margins. We expect these market fundamentals to continue beyond this season and be supportive of crop prices and grower margins into 2022.

• Growing conditions across North America vary with favorable crop conditions in the US South and East regions, and drought conditions in the Western US, US Northern Plains and Canadian Prairies. We expect this variability could impact regional crop protection and plant health product demand in the second half of 2021 as growers experiencing favorable conditions look to boost and protect yields, particularly given additional pest pressure in parts of the US this summer, while growers impacted by drought may reduce some applications. However, with the strong outlook for crop prices and assuming a normal window for fall application, we expect US fertilizer demand and post-harvest crop protection applications to be strong.

• Brazil’s safrinha corn crop production estimates are significantly below initial market expectations due to both drought and frost. However, Brazilian crop prices remain at near-record highs and growers are expected to increase soybean and safrinha corn area when the next growing seasons begin. In Australia, precipitation has supported favorable soil moisture levels, leading to the largest seeded area for winter crops in the country’s history.

Crop Nutrient Markets

• Global potash shipments are projected to reach a record 69 to 71 million tonnes in 2021 while inventory in key regions are expected to be historically low going into 2022. This is supported by strong potash consumption backed by favorable agricultural fundamentals, with further upside limited by global supply issues and most producers operating at peak rates.

• We believe Latin America could reach new records for both potash consumption and imports in 2021, as applications for the last crop were strong and growers are proactively securing volumes for the upcoming season. In North America, increased crop area and normal application rates have supported historically high demand which we expect will continue in the fall.

• Global nitrogen demand growth is expected to be approximately 3 percent in 2021 driven by strong agricultural fundamentals and a rebound in industrial demand. In addition, global supply is tight because of production outages and project delays, which together with higher global energy costs, have supported nitrogen prices.

• Strong global urea prices and robust global import demand led Chinese urea exports to increase by over 40 percent during the first half of 2021 compared to depressed 2020 levels. However, as a result of high Chinese domestic prices and very strong demand, the Chinese government urged producers to prioritize the domestic market, which may limit China’s exports through the second half of 2021. Meanwhile, strong Indian urea demand, lower domestic production and tight inventories have resulted in regular tenders.

• Global phosphate demand remains robust in most key markets, which in combination with higher raw material costs and limited growth in export supply has continued to support phosphate prices. While inventories in India are tight, poor import economics create uncertainty for import demand in the second half of 2021.

2

Financial Outlook and Guidance

Based on market factors detailed above, we are raising full-year 2021 adjusted EBITDA guidance to $6.0 to $6.4 billion from $4.4 to $4.9 billion and full-year 2021 adjusted net earnings guidance to $4.60 to $5.10 per share from $2.55 to $3.25 per share.

All guidance numbers, including those noted above are outlined in the tables below. Refer to page 57 of Nutrien’s 2020 Annual Report for related assumptions and sensitivities.

2021 Guidance Ranges 1	Low			High
Adjusted net earnings per share 2	$	4.60		$	5.10
Adjusted EBITDA (billions) 2	$	6.0		$	6.4
Retail Adjusted EBITDA (billions)	$	1.6		$	1.7
Potash Adjusted EBITDA (billions)	$	2.4		$	2.6
Nitrogen Adjusted EBITDA (billions)	$	1.85		$	2.05
Phosphate Adjusted EBITDA (millions)	$	400		$	500
Potash sales tonnes (millions) 3		13.5			13.9
Nitrogen sales tonnes (millions) 3		10.8			11.2
Depreciation and amortization (billions)	$	1.9		$	2.0
Effective tax rate on adjusted earnings		24	%		26	%
Sustaining capital expenditures (billions) 2	$	1.15		$	1.25

  1  See the “Forward-Looking Statements” section.

  2  See the “Non-IFRS Financial Measures” section.

  3  Manufactured products only. Nitrogen excludes ESN® and Rainbow products.

Consolidated Results

	Three Months Ended June 30							Six Months Ended June 30
(millions of US dollars)	2021		2020		% Change			2021		2020		% Change
Sales 1		9,763		8,431		16			14,421		12,629		14
Freight, transportation and distribution		222		237		(6	)		433		449		(4	)
Cost of goods sold		6,659		6,024		11			9,950		9,125		9
Gross margin 1		2,882		2,170		33			4,038		3,055		32
Expenses 1		1,263		1,031		23			2,141		1,834		17
Net earnings		1,113		765		45			1,246		730		71
Adjusted EBITDA 2		2,215		1,721		29			3,021		2,229		36
Cash provided by operating activities		1,966		1,756		12			1,814		1,230		47
Free cash flow (“FCF”) 2		1,413		1,173		20			1,889		1,354		40
FCF including changes in non-cash operating working capital 2		1,662		1,611		3			1,346		922		46

  1  Certain immaterial figures have been reclassified for the three and six months ended June 30, 2020.

  2  See the “Non-IFRS Financial Measures” section.

Net earnings and adjusted EBITDA increased significantly in the second quarter and first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices, higher potash sales volumes and earnings growth in Nutrien Ag Solutions (“Retail”). Cash flow from operating activities increased in the second quarter and first half of 2021 compared to the same periods last year, which helped generate $1.9 billion in free cash flow in the first half of 2021, an increase of more than $0.5 billion compared to the amount generated in the same period in 2020. The COVID-19 pandemic had a limited impact on our results during the second quarter and first half of 2021.

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, 2021 to the results for the three and six months ended June 30, 2020, unless otherwise noted.

3

 Nutrien Ag Solutions (“Retail”)

	Three Months Ended June 30
(millions of US dollars, except	Dollars									Gross Margin								Gross Margin (%)
as otherwise noted)	2021			2020			% Change			2021			2020			% Change		2021		2020
Sales
Crop nutrients		3,045			2,527			20			703			559			26		23		22
Crop protection products		2,666			2,436			9			587			547			7		22		22
Seed		1,216			1,141			7			237			219			8		19		19
Merchandise		268			253			6			45			45			-		17		18
Nutrien Financial 1		59			40			48			59			40			48		100		100
Services and other 1		335			400			(16	)		279			250			12		83		63
Nutrien Financial elimination 2		(52	)		(33	)		58			(52	)		(33	)		58		100		100
		7,537			6,764			11			1,858			1,627			14		25		24
Cost of goods sold		5,679			5,137			11
Gross margin		1,858			1,627			14
Expenses 1,3		938			826			14
Earnings before finance     costs and taxes (“EBIT”)		920			801			15
Depreciation and amortization		169			163			4
EBITDA		1,089			964			13
Adjustments 4		8			-			n/m
Adjusted EBITDA		1,097			964			14

  1  Certain immaterial figures have been reclassified for the three months ended June 30, 2020.

  2  Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

  3  Includes selling expenses of $863 million (2020 – $764 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)	2021			2020			% Change			2021			2020			% Change		2021		2020
Sales
Crop nutrients		4,061			3,312			23			923			715			29		23		22
Crop protection products		3,751			3,446			9			763			704			8		20		20
Seed		1,679			1,535			9			306			278			10		18		18
Merchandise		498			469			6			83			79			5		17		17
Nutrien Financial 1		84			56			50			84			56			50		100		100
Services and other 1		508			655			(22	)		423			384			10		83		59
Nutrien Financial elimination		(72	)		(48	)		50			(72	)		(48	)		50		100		100
		10,509			9,425			12			2,510			2,168			16		24		23
Cost of goods sold		7,999			7,257			10
Gross margin		2,510			2,168			16
Expenses 1,2		1,659			1,515			10
EBIT		851			653			30
Depreciation and amortization		346			318			9
EBITDA		1,197			971			23
Adjustments 3		9			-			n/m
Adjusted EBITDA		1,206			971			24

  1  Certain immaterial figures have been reclassified for the six months ended June 30, 2020.

  2  Includes selling expenses of $1,530 million (2020 – $1,399 million).

  3  See Note 2 to the interim financial statements.

• Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher sales, gross margin and gross margin percentages. This was supported by expanded planted acreage and strong agricultural market fundamentals in all regions in which we operate, as well as, supply chain improvements and strategic procurement. Our Retail cash operating coverage ratio¹ for the first half of 2021 declined to 60 percent.

• Crop nutrients sales increased significantly in the second quarter and first half of 2021 supported by higher prices and record North American and International first half sales volumes. Gross margin benefited from stronger margin per tonne due in part to strategic procurement in a rising price environment.

1 This financial measure is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section for further information.

4

• Crop protection products sales increased in the second quarter and first half of 2021 due to market growth and favorable application conditions throughout most of the US. Gross margin percentages were stable as strategic procurement and strong proprietary product results more than offset higher costs for certain products caused by global supply chain issues.

• Seed sales increased in the second quarter and first half of 2021, supported by higher seeded acreage in key regions where we operate and strong agriculture fundamentals. Gross margin percentage was stable in the second quarter and first half of 2021.

• Merchandise sales increased in the second quarter and first half of 2021 primarily driven by growth in the Australian market due to higher animal health and management sales related to strong livestock prices. Gross margin was similar in both periods despite the shift in product mix.

• Nutrien Financial sales increased in the second quarter and first half of 2021 due to higher utilization and adoption of our programs.

• Services and other sales decreased due to the divestiture of an Australian livestock export business in the fourth quarter of 2020, which more than offset higher US custom application sales. Despite the change in revenue mix, the impact to gross margin percentage was favorable for both the second quarter and first half of 2021.

 Potash

	Three Months Ended June 30
(millions of US dollars, except	Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)	2021		2020		% Change		2021	2020		% Change			2021		2020		% Change
Manufactured product
Net sales
North America		326		232		41	1,172		1,201		(2	)		278		194		43
Offshore		491		356		38	2,449		2,414		1			200		147		36
		817		588		39	3,621		3,615		-			226		163		39
Cost of goods sold		317		310		2								88		86		2
Gross margin - total		500		278		80								138		77		79
Expenses 1		123		52		137	Depreciation and amortization							32		30		7
EBIT		377		226		67	Gross margin excluding depreciation
Depreciation and amortization		116		109		6	and amortization - manufactured 2							170		107		59
EBITDA		493		335		47	Potash cash cost of product
Adjustments 3		2		-		n/m	manufactured 2							59		52		13
Adjusted EBITDA		495		335		48
1  Includes provincial mining taxes of $107 million (2020 – $46 million).   2  See the “Non-IFRS Financial Measures” section.   3  See Note 2 to the interim financial statements.
	Six Months Ended June 30
(millions of US dollars, except	Dollars						Tonnes (thousands)						Average per Tonne
as otherwise noted)	2021		2020		% Change		2021	2020		% Change			2021		2020		% Change
Manufactured product
Net sales
North America		658		457		44	2,642		2,348		13			249		195		28
Offshore		770		648		19	4,136		4,144		-			186		156		19
		1,428		1,105		29	6,778		6,492		4			211		170		24
Cost of goods sold		608		575		6								90		88		2
Gross margin - total		820		530		55								121		82		48
Expenses 1		187		115		63	Depreciation and amortization							35		32		9
EBIT		633		415		53	Gross margin excluding depreciation
Depreciation and amortization		240		205		17	and amortization - manufactured							156		114		37
EBITDA		873		620		41	Potash cash cost of product
Adjustments 2		2		-		n/m	manufactured							58		56		4
Adjusted EBITDA		875		620		41

  1  Includes provincial mining taxes of $165 million (2020 – $103 million).

  2  See Note 2 to the interim financial statements.

5

• Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices and record sales volumes.

• Sales volumes were the highest of any second quarter or first half on record. Demand was strong in both North America and Offshore markets, supported by high crop prices and good affordability, allowing us to leverage our structurally advantaged, flexible, low-cost network of six mines and integrated transportation and logistics system.

• Net realized selling price increased in the second quarter and first half of 2021 due to strong global demand and very tight supply.

• Cost of goods sold per tonne in the second quarter and first half of 2021 was slightly higher compared to the same periods in 2020, primarily due to the stronger Canadian dollar and mine production mix. These factors also led to a higher potash cash cost of product manufactured per tonne in the second quarter and first half of 2021.

Canpotex Sales by Market

(percentage of sales volumes, except as     otherwise noted)		Three Months Ended June 30							Six Months Ended June 30
	2021		2020		Change			2021		2020		Change
Other Asian markets 1		41		26		15			39		28		11
Latin America		35		36		(1	)		33		31		2
China		11		19		(8	)		12		22		(10	)
Other markets		10		7		3			11		7		4
India		3		12		(9	)		5		12		(7	)
		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)	2021		2020			% Change			2021		2020		% Change			2021		2020		% Change
Manufactured product
Net sales
Ammonia		346		229			51			836		935		(11	)		416		244		70
Urea		346		273			27			819		1,000		(18	)		421		273		54
Solutions, nitrates and     sulfates		290		194			49			1,311		1,255		4			221		154		44
		982		696			41			2,966		3,190		(7	)		331		218		52
Cost of goods sold		597		508			18										201		159		26
Gross margin - manufactured		385		188			105										130		59		120
Gross margin - other 1		31		20			55			Depreciation and amortization							52		54		(4	)
Gross margin - total		416		208			100			Gross margin excluding depreciation
Expenses (income)		17		(3	)		n/m			and amortization - manufactured							182		113		61
EBIT		399		211			89			Ammonia controllable cash cost of
Depreciation and amortization		155		172			(10	)		product manufactured 2							51		40		28
EBITDA		554		383			45
Adjustments 3		1		-			n/m
Adjusted EBITDA		555		383			45

 1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $197 million (2020 – $157 million) less cost of goods sold of $166 million (2020 – $137 million).

 2 See the “Non-IFRS Financial Measures” section.

 3 See Note 2 to the interim financial statements.

6

	Six Months Ended June 30
(millions of US dollars, except	Dollars							Tonnes (thousands)							Average per Tonne
as otherwise noted)	2021		2020		% Change			2021		2020		% Change			2021		2020		% Change
Manufactured product
Net sales
Ammonia		506		359		41			1,408		1,502		(6	)		360		239		51
Urea		595		510		17			1,576		1,856		(15	)		377		275		37
Solutions, nitrates and     sulfates		454		357		27			2,385		2,360		1			190		151		26
		1,555		1,226		27			5,369		5,718		(6	)		290		214		36
Cost of goods sold		1,037		952		9										194		166		17
Gross margin - manufactured		518		274		89										96		48		100
Gross margin - other 1		48		31		55			Depreciation and amortization							53		56		(5	)
Gross margin - total		566		305		86			Gross margin excluding depreciation
Expenses		-		8		(100	)		and amortization - manufactured							149		104		43
EBIT		566		297		91			Ammonia controllable cash cost of
Depreciation and amortization		284		322		(12	)		product manufactured							51		43		19
EBITDA		850		619		37
Adjustments 2		5		-		n/m
Adjusted EBITDA		855		619		38

1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $384 million (2020 – $305 million) less cost of goods sold of $336 million (2020 – $274 million).

2 See Note 2 to the interim financial statements.

• Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices which more than offset higher natural gas costs, lower equity earnings and lower sales volumes.

• Sales volumes were lower in the second quarter and first half of 2021 due to higher turnaround activities, temporary production outages and lower inventories at the beginning of 2021. Our ammonia operating rate was 87 percent and 92 percent respectively in the second quarter and first half of 2021.

• Net realized selling price of nitrogen in the second quarter and first half of 2021 was higher due to higher benchmark prices resulting from the strength in global agriculture markets and a recovery in industrial nitrogen demand.

• Cost of goods sold per tonne increased during the second quarter and first half of 2021 due to higher natural gas costs, a stronger Canadian dollar and lower nitrogen production. The stronger Canadian dollar combined with lower production volumes led to a higher ammonia controllable cash cost of product manufactured per tonne in the second quarter and first half of 2021.

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)	2021		2020		% Change			2021		2020		% Change
Overall gas cost excluding realized derivative impact		3.86		2.09		85			3.51		2.16	63
Realized derivative impact		0.03		0.06		(50	)		0.03		0.06	(50)
Overall gas cost		3.89		2.15		81			3.54		2.22	59
Average NYMEX		2.83		1.72		65			2.76		1.83	51
Average AECO		2.32		1.37		69			2.31		1.50	54

• Natural gas prices in our cost of production increased in the second quarter and first half of 2021 as a result of higher North American gas index prices and increased gas costs in Trinidad, which are linked to ammonia benchmark prices.

7

 Phosphate

	Three Months Ended June 30
(millions of US dollars, except	Dollars							Tonnes (thousands)							Average per Tonne
as otherwise noted)	2021		2020		% Change			2021		2020		% Change			2021		2020		% Change
Manufactured product
Net sales
Fertilizer		232		146		59			394		472		(17	)		588		309		90
Industrial and feed		119		104		14			192		194		(1	)		621		538		15
		351		250		40			586		666		(12	)		598		375		59
Cost of goods sold		271		224		21										463		335		38
Gross margin - manufactured		80		26		208										135		40		238
Gross margin - other 1		4		2		100			Depreciation and amortization							60		84		(29	)
Gross margin - total		84		28		200			Gross margin excluding depreciation
Expenses		7		7		-			and amortization - manufactured							195		124		57
EBIT		77		21		267
Depreciation and amortization		35		56		(38	)
EBITDA / Adjusted EBITDA		112		77		45
1 Includes other phosphate and purchased products and is comprised of net sales of $52 million (2020 - $27 million) less cost of goods sold of $48 million (2020 - $25 million).
	Six Months Ended June 30
(millions of US dollars, except	Dollars							Tonnes (thousands)							Average per Tonne
as otherwise noted)	2021		2020		% Change			2021		2020		% Change			2021		2020		% Change
Manufactured product
Net sales
Fertilizer		462		319		45			903		1,040		(13	)		511		307		66
Industrial and feed		233		210		11			385		385		-			605		546		11
		695		529		31			1,288		1,425		(10	)		539		372		45
Cost of goods sold		553		511		8										429		359		19
Gross margin - manufactured		142		18		689										110		13		746
Gross margin - other 1		8		3		167			Depreciation and amortization							57		84		(32	)
Gross margin - total		150		21		614			Gross margin excluding depreciation
Expenses		14		17		(18	)		and amortization - manufactured							167		97		72
EBIT		136		4		n/m
Depreciation and amortization		73		119		(39	)
EBITDA / Adjusted EBITDA		209		123		70

1 Includes other phosphate and purchased products and is comprised of net sales of $93 million (2020 - $61 million) less cost of goods sold of $85 million (2020 - $58 million).

• Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices which more than offset higher raw material costs and lower sales volumes.

• Sales volumes were lower in the second quarter and first half of 2021 due to the timing of turnaround activity this year and higher inventory tonnes in 2020 which supported higher sales in the second quarter and first half of 2020.

• Net realized selling price of phosphate fertilizer increased in the second quarter and first half of 2021 as a result of the increase in benchmark fertilizer prices resulting from the strength in global agriculture markets and higher global raw material costs. Industrial and feed prices also increased, but to a lesser extent than fertilizer, due to a lag in price realizations relative to spot prices.

• Cost of goods sold per tonne increased due to significantly higher raw material input costs and a $46 million favorable change in estimate related to an asset retirement obligation recorded in the second quarter of 2020. This was partially offset by lower depreciation and amortization following the non-cash impairment of assets in the third quarter of 2020.

8

 Corporate and Others

	Three Months Ended June 30							Six Months Ended June 30
(millions of US dollars, except as otherwise noted)		2021		2020		% Change			2021		2020		% Change
Sales 1		-		20		(100	)		-		47		(100	)
Cost of goods sold		-		18		(100	)		-		43		(100	)
Gross margin		-		2		(100	)		-		4		(100	)
Selling expenses		(9	)	(8	)	13			(15	)	(13	)	15
General and administrative expenses		66		65		2			124		125		(1	)
Share-based compensation expense (recovery)		38		12		217			61		(20	)	n/m
Other expenses		83		80		4			111		87		28
EBIT		(178	)	(147	)	21			(281	)	(175	)	61
Depreciation and amortization		10		17		(41	)		22		26		(15	)
EBITDA		(168	)	(130	)	29			(259	)	(149	)	74
Adjustments 2		100		65		54			143		18		694
Adjusted EBITDA		(68	)	(65	)	5			(116	)	(131	)	(11	)
1  Primarily relates to our non-core Canadian business that was sold in 2020.
2  See Note 2 to the interim financial statements.

• Share-based compensation expense (recovery) – In the second quarter of 2021, the expense was higher as a result of the increase in our share price. We also had a higher number of share-based awards that vested in 2021.

We had an expense in the first half of 2021 due to an increase in our share price, while a recovery was recorded in the first half of 2020 as our share price decreased as a result of market volatility caused by the COVID-19 pandemic.

• Other expenses were higher in the second quarter and first half of 2021 compared to the same periods in 2020 as we recognized additional cloud computing related expenses from our change in accounting policy (refer to Note 3). This was partially offset by lower foreign exchange losses as Canadian and Australian dollars improved relative to the US dollar in the second quarter of 2021.

Finance Costs, Income Tax Expense and

Other Comprehensive Income (Loss)

	Three Months Ended June 30					Six Months Ended June 30
(millions of US dollars, except as otherwise noted)		2021	2020	% Change			2021	2020		% Change
Finance costs		125	139	(10	)		245	272		(10	)
Income tax expense		381	235	62			406	219		85
Other comprehensive income (loss)		61	201	(70	)		85	(157	)	n/m

• Finance costs in the second quarter and first half of 2021 were lower due to lower interest rates and a lower short-term debt balance, more than offsetting a higher long-term debt balance resulting from the $1.5 billion in notes issued in the second quarter of 2020.

• Income tax expense in the second quarter and first half of 2021 was higher as a result of higher earnings before income taxes compared to the same periods in 2020.

• Other comprehensive income (loss) is primarily driven by changes in the currency translation of our foreign operations and our investment in Sinofert Holdings Ltd. (“Sinofert”). In 2020, the COVID-19 pandemic resulted in increased market volatility that affected share prices and foreign exchange rates. This resulted in fair value losses on our investment in Sinofert as well as a significant translation gain in the second quarter of 2020 and a significant translation loss in the first quarter of 2020. In the first half of 2021, Sinofert share price increased while the Canadian and Australian dollars relative to the US dollar were less volatile.

9

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 existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures 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)		2021		2020		% Change			2021		2020		% Change
Cash provided by operating activities		1,966		1,756		12			1,814		1,230		47
Cash used in investing activities		(431	)	(408	)	6			(819	)	(853	)	(4	)
Cash (used in) provided by financing activities		(449	)	(3,139	)	(86	)		(640	)	380		n/m
Effect of exchange rate changes on cash and cash equivalents		(4	)	24		n/m			(15	)	(13	)	15
Increase (decrease) in cash and cash equivalents		1,082		(1,767	)	n/m			340		744		(54	)

Cash provided by operating activities	• Higher cash provided by operating activities in the second quarter and first half of 2021 compared to the same periods in 2020 was primarily due to strong global crop and fertilizer markets, which resulted in higher earnings, combined with improvements to working capital management, the most significant of which was an increase in payables and accrued charges related to a shift in timing of supplier payments.
Cash used in investing activities	• Higher cash used in investing activities in the second quarter was primarily due to higher additions to our property, plant and equipment from higher turnaround activities compared to the same period in 2020. • Lower cash used in investing activities for the first half of 2021 was primarily due to lower acquisitions compared to the same period in 2020.
Cash (used in) provided by financing activities	• Lower cash used in financing activities for the second quarter of 2021 compared to the second quarter of 2020 was due to minimal debt repayments in 2021. In 2020, as we managed our liquidity needs during the initial period of the COVID-19 pandemic, we repaid $4.3 billion of short-term debt and issued $1.5 billion of notes. • Cash used in financing activities for the first half of 2021 compared to cash provided by financing activities in the first half of 2020 was primarily due to the issuance of $1.5 billion of notes and a note repayment of $500 million in the first half of 2020. We did not issue or repay notes in the first half of 2021.

Financial Condition Review

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

	As at
(millions of US dollars, except as otherwise noted)		June 30, 2021	December 31, 2020	$	Change		% Change
Assets
Cash and cash equivalents		1,794	1,454		340		23
Receivables		6,683	3,626		3,057		84
Prepaid expenses and other current assets		524	1,460		(936	)	(64	)
Other assets		664	914		(250	)	(27	)
Liabilities and Equity
Payables and accrued charges		9,367	8,058		1,309		16
Retained earnings		7,315	6,606		709		11

• 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. This was a result of increased crop nutrient net realized selling prices and demand for crop inputs, as well as higher Retail vendor rebates receivables. Certain income tax receivables previously classified as non-current are currently realizable within one year.

10

• Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventory (primarily seed and crop protection) during the spring planting and application seasons.

• Other assets decreased due to a reclassification of certain income tax receivables as current receivables, which will be realized within one year.

• Payables and accrued charges increased due to a shift in timing of supplier payments and higher inventory purchases to meet strong seasonal demand, which were partially offset by lower customer prepayments in North America as Retail customers took delivery of prepaid sales.

• Retained earnings increased as net earnings in the first half of 2021 exceeded dividends declared.

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, 2021.

	As at June 30, 2021
					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		500		-		-
Other credit facilities 1		0.9 - 7.5		630		115		73
Other		n/a				95		-
Total						210		73

1  Other credit facilities are unsecured and consist of South American facilities with debt of $167 million and interest rates ranging from 1.5 percent to 7.5 percent and other facilities with debt of $21 million and interest rates ranging from 0.9 percent to 4.1 percent.

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. There is no outstanding balance as of June 30, 2021.

We extended the maturity date of the unsecured revolving term credit facility from 2023 to 2026 in the three months ended June 30, 2021. There was no change to the total facility limit or the significant agreement terms from those we disclosed in our 2020 Annual Report.

Our long-term debt consists primarily of notes. See the “Capital Structure and Management” section of our 2020 Annual Report for information on balances, rates and maturities for our notes.

Outstanding Share Data

	As at August 6, 2021
Common shares		570,688,867
Options to purchase common shares		9,877,776

For more information on our capital structure and management, see Note 24 to our 2020 financial statements.

11

Quarterly Results

(millions of US dollars, except as otherwise noted)	Q2 2021		Q1 2021		Q4 2020		Q3 2020			Q2 2020		Q1 2020			Q4 2019			Q3 2019
Sales 1		9,763		4,658		4,052		4,227			8,431		4,198			3,462			4,185
Net earnings (loss) attributable to equity holders of Nutrien		1,108		127		316		(587	)		765		(35	)		(48	)		141
Adjusted EBITDA		2,215		806		768		670			1,721		508			664			787
Net earnings (loss) per share attributable to equity holders of Nutrien
Basic		1.94		0.22		0.55		(1.03	)		1.34		(0.06	)		(0.08	)		0.25
Diluted		1.94		0.22		0.55		(1.03	)		1.34		(0.06	)		(0.08	)		0.24
1  Certain immaterial figures have been reclassified in the first three quarters 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 nutrient 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.

In the third quarter of 2020, earnings were impacted by an $824 million non-cash impairment of assets primarily in the Phosphate segment as a result of lower forecasted global phosphate prices. 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. (“MOPCO”).

Critical Accounting Estimates

Our significant accounting policies are disclosed in our 2020 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 53 of our 2020 Annual Report. There were no significant changes in the six months ended June 30, 2021 to our critical accounting estimates.

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, 2021 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 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; capital spending expectations for 2021; expectations regarding performance of our operating segments in 2021, including our operating segment market outlooks and market conditions for 2021, 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, crop mix, prices and the impact of import and export volumes; Nutrien’s ability to develop innovative and sustainable solutions; the negotiation of sales contracts; and acquisitions and divestitures. 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.

12

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 an 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 2021 and in the future; 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 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, fiscal and monetary responses by governments and financial institutions and disruptions to global supply chains; 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 expected 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 and Definitions” section of our 2020 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.

13

Appendix A - Selected Additional Financial Data

Selected Retail measures	Three Months Ended June 30				Six Months Ended June 30
	2021		2020		2021		2020
Proprietary products margin as a percentage of product line margin (%)
Crop nutrients		24		24		23		26
Crop protection products		43		42		42		42
Seed		46		47		43		44
All products		29		29		27		28
Crop nutrients sales volumes (tonnes - thousands)
North America		5,020		5,098		6,617		6,524
International		1,132		1,024		1,935		1,623
Total		6,152		6,122		8,552		8,147
Crop nutrients selling price per tonne
North America		506		427		494		425
International		445		340		408		332
Total		495		413		475		406
Crop nutrients gross margin per tonne
North America		127		101		123		100
International		57		42		54		40
Total		114		91		108		88
Financial performance measures							2021
Retail adjusted EBITDA to sales (“Retail adjusted EBITDA margin”) (%) 1								10
Retail adjusted average working capital to sales (%) 1, 2								12
Retail adjusted average working capital to sales excluding Nutrien Financial (%) 1, 2								-
Retail cash operating coverage ratio (%) 1, 2								60
Retail normalized comparable store sales (%) 2								1
Retail adjusted EBITDA per US selling location (thousands of US dollars) 1, 2								1,267
Nutrien Financial net interest margin (%) 1, 2								6.2

  1  Rolling four quarters ended June 30, 2021.

  2  See the “Non-IFRS Financial Measures” section.

Nutrien Financial	As at June 30, 2021
(millions of US dollars)	Current		<31 days past due		31-90 days past due		>90 days past due		Gross Receivables		Allowance 1			Total
North America		2,530		152		56		48		2,786		(31	)		2,755
International		230		12		14		63		319		(2	)		317
Nutrien Financial receivables		2,760		164		70		111		3,105		(33	)		3,072

  1  Bad debt expense on the above receivables for the three months ended June 30, 2021 was $11 million (2020 - $12 million) in the Retail segment.

15

Selected Nitrogen measures	Three Months Ended June 30			Six Months Ended June 30
		2021	2020		2021	2020
Sales volumes (tonnes - thousands)
Fertilizer		1,825	2,173		3,130	3,584
Industrial and feed		1,141	1,017		2,239	2,134
Net sales (millions of US dollars)
Fertilizer		638	510		970	828
Industrial and feed		344	186		585	398
Net selling price per tonne
Fertilizer		350	235		310	231
Industrial and feed		302	182		261	186
Production measures	Three Months Ended June 30			Six Months Ended June 30
		2021	2020		2021	2020
Potash production (Product tonnes - thousands)		3,414	3,346		6,950	6,381
Potash shutdown weeks 1		4	22		4	34
Ammonia production - total 2		1,492	1,619		2,941	3,066
Ammonia production - adjusted 2, 3		954	1,067		2,007	2,058
Ammonia operating rate (%) 3		87	97		92	94
P2O5production (P2O5 tonnes - thousands)		347	357		725	729
P2O5 operating rate (%)		82	84		86	86
1  Represents weeks of full production shutdown, excluding the impact of any periods of reduced operating rates and 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.

16

Appendix B - Non-IFRS Financial Measures

We use both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are numerical measures of a company’s historical or future financial performance, financial position or cash flow that are not specified, defined or determined under IFRS, and are not presented in our interim financial statements. Non-IFRS measures either exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure specified, defined or determined under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.

Management believes the non-IFRS financial measures 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 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, their definitions, and why management uses each measure. It includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-IFRS financial measures are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As non-recurring or unusual items arise, we generally exclude these items in our calculation of the applicable non-IFRS financial measure.

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, certain integration and restructuring related costs, share-based compensation, impairment of assets, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses, cloud computing transition adjustment, loss on disposal of business, and net gain on disposal of investment in MOPCO. 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. 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. In 2021, we amended our calculation of adjusted EBITDA to adjust for the impact of restructuring and related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

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.

	Three Months Ended June 30				Six Months Ended June 30
(millions of US dollars)		2021		2020		2021	2020
Net earnings		1,113		765		1,246	730
Finance costs		125		139		245	272
Income tax expense		381		235		406	219
Depreciation and amortization		485		517		965	990
EBITDA		2,104		1,656		2,862	2,211
Integration and restructuring related costs		29		18		39	28
Share-based compensation expense (recovery)		38		12		61	(20	)
Impairment of assets		1		-		5	-
COVID-19 related expenses		9		17		18	19
Foreign exchange (gain) loss, net of related derivatives		(2	)	18		-	(9	)
Cloud computing transition adjustment		36		-		36	-
Adjusted EBITDA		2,215		1,721		3,021	2,229

17

Adjusted EBITDA (Consolidated), Adjusted Net Earnings Per Share and Sustaining Capital Expenditures Guidance

Adjusted EBITDA, adjusted net earnings per share and sustaining capital expenditures 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 due to unknown variables 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. Guidance for adjusted EBITDA and adjusted net earnings per share excludes the impacts of integration and restructuring related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses, and cloud computing transition adjustment. Guidance for sustaining capital expenditures includes expected expenditures required to sustain operations at existing levels and includes major repairs and maintenance and plant turnarounds.

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: Net earnings (loss) before certain integration and restructuring related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses (including those recorded under finance costs for managing our liquidity position in response to the COVID-19 pandemic in 2020), cloud computing transition adjustment, loss on disposal of business, net gain on disposal of investment in MOPCO and impairment of assets, net of tax. 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. In 2021, we amended our calculation of adjusted net earnings to adjust for the impact of restructuring and related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations excluding the effects of non-operating items.

	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
(millions of US dollars, except as otherwise noted)		Increases (Decreases)		Post-Tax		Per Diluted Share		Increases (Decreases)	Post-Tax	Per Diluted Share
Net earnings attributable to equity holders of  Nutrien				1,108		1.94			1,235	2.16
Adjustments:
Integration and restructuring related costs		29		22		0.03		39	30	0.05
Share-based compensation expense		38		29		0.05		61	46	0.08
Impairment of assets		1		1		-		5	4	0.01
COVID-19 related expenses		9		7		0.01		18	14	0.02
Foreign exchange gain, net of     related derivatives		(2	)	(2	)	-		-	-	-
Cloud computing transition adjustment		36		27		0.05		36	27	0.05
Adjusted net earnings				1,192		2.08			1,356	2.37

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

Most directly comparable IFRS financial measure: Cash from operations before working capital changes.

Definition: Cash from operations before working capital changes less sustaining capital expenditures. We also calculate a similar measure that includes changes in non-cash operating working capital.

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.

18

	Three Months Ended June 30					Six Months Ended June 30
(millions of US dollars)		2021		2020			2021		2020
Cash from operations before working capital changes		1,717		1,318			2,357		1,662
Sustaining capital expenditures		(304	)	(145	)		(468	)	(308	)
Free cash flow		1,413		1,173			1,889		1,354
Changes in non-cash operating working capital		249		438			(543	)	(432	)
Free cash flow including changes in non-cash operating working capital		1,662		1,611			1,346		922

Potash Cash Cost of Product Manufactured (“COPM”)

Most directly comparable IFRS financial measure: Cost of goods sold (“COGS”) for the Potash segment.

Definition: Potash COGS for the period excluding depreciation and amortization expense and inventory and other adjustments divided by the production tonnes for the period.

Why we use the measure and why it is useful to investors: To assess operational performance. Potash cash COPM excludes the effects of production from other periods 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)		2021		2020			2021		2020
Total COGS - Potash		317		310			608		575
Change in inventory		(11	)	(40	)		16		(32	)
Other adjustments		(2	)	(3	)		(6	)	(5	)
COPM		304		267			618		538
Depreciation and amortization included in COPM		(103	)	(92	)		(214	)	(181	)
Cash COPM		201		175			404		357
Production tonnes (tonnes - thousands)		3,414		3,346			6,950		6,381
Potash cash COPM per tonne		59		52			58		56

Ammonia Controllable Cash COPM

Most directly comparable IFRS financial measure: COGS for the Nitrogen segment.

Definition: The total of COGS for the Nitrogen segment 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)		2021		2020			2021		2020
Total COGS - Nitrogen		763		645			1,373		1,226
Depreciation and amortization in COGS		(134	)	(152	)		(242	)	(282	)
Cash COGS for products other than ammonia		(448	)	(369	)		(841	)	(730	)
Ammonia
Total cash COGS before other adjustments		181		124			290		214
Other adjustments 1		(27	)	(46	)		(30	)	(35	)
Total cash COPM		154		78			260		179
Natural gas and steam costs		(118	)	(53	)		(192	)	(119	)
Controllable cash COPM		36		25			68		60
Production tonnes (net tonnes 2 - thousands)		703		644			1,305		1,388
Ammonia controllable cash COPM per tonne		51		40			51		43
1  Includes changes in inventory balances and other adjustments.
2  Ammonia tonnes available for sale, as not upgraded to other Nitrogen products.

19

Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured

Most directly comparable IFRS financial measure: Gross margin.

Definition: Gross margin from manufactured products per tonne less depreciation and amortization per tonne. 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.

Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial

Most directly comparable IFRS financial measure: (Current assets minus current liabilities for Retail) divided by Retail sales.

Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the working capital and sales of certain acquisitions (such as Ruralco) during the first year following the acquisition. We amended our calculation to adjust for the sales of certain recently acquired businesses. We also look at this metric excluding the sales and working capital of Nutrien Financial.

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, 2021
(millions of US dollars, except as otherwise noted)	Q3 2020			Q4 2020			Q1 2021			Q2 2021			Average/Total
Working capital		3,216			1,157			1,630			1,348
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 1		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 1		(36	)		(37	)		(25	)		(59	)
Adjusted sales excluding Nutrien Financial		2,706			2,581			2,947			7,478			15,712
1  Certain immaterial figures have been reclassified for the third quarter of 2020.
Adjusted average working capital to sales (%)														12
Adjusted average working capital to sales excluding Nutrien Financial (%)														-

Nutrien Financial Net Interest Margin

Most directly comparable IFRS financial measure: Nutrien Financial gross margin divided by average Nutrien Financial receivables.

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.

20

	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 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

Most directly comparable IFRS financial measure: Retail operating expenses as a percentage of Retail gross margin.

Definition: Retail operating 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, 2021
(millions of US dollars, except as otherwise noted)	Q3 2020			Q4 2020			Q1 2021			Q2 2021			Total
Operating expenses 1, 2		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 2		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
1   Includes Retail expenses below gross margin including selling expenses, general and administrative expenses and other (income) expenses.
2   Certain immaterial figures have been reclassified for the third quarter of 2020.

Retail Adjusted EBITDA per US Selling Location

Most directly comparable IFRS financial measure: Retail US adjusted EBITDA.

Definition: Total Retail US adjusted EBITDA for the last four rolling quarters, adjusted for 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.

Why we use the measure and why it is useful to investors: To assess our US Retail operating performance. This measure includes locations we have owned for more than 12 months.

	Rolling four quarters ended June 30, 2021
(millions of US dollars, except as otherwise noted)	Q3 2020		Q4 2020		Q1 2021		Q2 2021		Total
Adjusted US EBITDA		86		177		29		847		1,139
Adjustments for acquisitions										(5)
Adjusted US EBITDA adjusted for acquisitions										1,134
Number of US selling locations adjusted for acquisitions										895
Adjusted EBITDA per US selling location (thousands of US dollars)										1,267

21

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)		2021	2020
Sales from comparable base
Current period		10,405	8,602
Prior period 1		9,425	8,551
Comparable store sales (%)		10	1
Prior period normalized for benchmark prices and foreign exchange rates 1		10,351	8,104
Normalized comparable store sales (%)		1	6
1 Certain immaterial figures have been reclassified in 2020.

22