Agrium (AGU) 6-K Agrium Reports Third Quarter Results

EXHIBIT 99.3

AGRIUM INC.

CONSOLIDATED

INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED

SEPTEMBER 30, 2017

AGRIUM INC.

Condensed Consolidated Interim Statements of Operations

(Unaudited)

			Three months ended September 30,						Nine months ended September 30,
(millions of U.S. dollars, unless otherwise stated)	Notes		2017			2016 (a)			2017			2016(a)
Sales				2,382			2,192			11,316			11,219
Cost of product sold				1,825			1,624			8,674			8,589
Gross profit				557			568			2,642			2,630
Expenses
Selling				470			446			1,495			1,433
General and administrative				56			60			176			176
Share-based payments				40			5			40			22
Earnings from associates and joint ventures				(4	)		(3	)		(32	)		(31	)
Other expenses		4		16			45			69			104
(Loss) earnings before finance costs and income taxes				(21	)		15			894			926
Finance costs related to long-term debt				56			51			155			153
Other finance costs				24			15			71			53
(Loss) earnings before income taxes				(101	)		(51	)		668			720
Income taxes				(32	)		(13	)		193			205
Net (loss) earnings from continuing operations				(69	)		(38	)		475			515
Net (loss) earnings from discontinued operations		6		(182	)		(1	)		(178	)		14
Net (loss) earnings				(251	)		(39	)		297			529
Attributable to
Equity holders of Agrium				(253	)		(41	)		293			525
Non-controlling interests				2			2			4			4
Net (loss) earnings				(251	)		(39	)		297			529
Earnings per share attributable to equity holders of Agrium
Basic (loss) earnings per share from continuing operations				(0.52	)		(0.28	)		3.41			3.70
Basic (loss) earnings per share from discontinued operations				(1.32	)		(0.01	)		(1.29	)		0.10
Basic (loss) earnings per share				(1.84	)		(0.29	)		2.12			3.80
Diluted (loss) earnings per share from continuing operations				(0.52	)		(0.28	)		3.40			3.70
Diluted (loss) earnings per share from discontinued operations				(1.32	)		(0.01	)		(1.29	)		0.10
Diluted (loss) earnings per share				(1.84	)		(0.29	)		2.11			3.80
Weighted average number of shares outstanding for basic and diluted (loss) earnings per share (millions of common shares)				138			138			138			138

(a) Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

See accompanying notes.

Basis of preparation and statement of compliance

These condensed consolidated interim financial statements (“interim financial statements”) were approved for issuance by the Audit Committee on November 7, 2017. We prepared these interim financial statements in accordance with International Accounting Standard 34Interim Financial Reporting. These interim financial statements do not include all information and disclosures normally provided in annual financial statements and should be read in conjunction with our audited annual financial statements and related notes contained in our 2016 Annual Report, available atwww.agrium.com.

The accounting policies applied in these interim financial statements are the same as those applied in our audited annual financial statements in our 2016 Annual Report.

1

AGRIUM INC.

Condensed Consolidated Interim Statements of Comprehensive Income

(Unaudited)

			Three months ended September 30,						Nine months ended September 30,
(millions of U.S. dollars)	Notes		2017			2016			2017			2016
Net (loss) earnings				(251	)		(39	)		297			529
Other comprehensive income (loss)
Items that are or may be reclassified to earnings
Cash flow hedges		3
Effective portion of changes in fair value				(29	)		(6	)		(59	)		(12	)
Deferred income taxes				8			1			16			4
Associates and joint ventures
Share of comprehensive income (loss)				—			1			(51	)		2
Deferred income taxes				—			—			10			—
Foreign currency translation
Gains				31			—			196			153
Reclassifications to earnings				—			—			6			—
				10			(4	)		118			147
Items that will never be reclassified to earnings
Post-employment benefits
Actuarial losses				—			(1	)		(3	)		(25	)
Deferred income taxes				—			—			1			7
				—			(1	)		(2	)		(18	)
Other comprehensive income (loss)				10			(5	)		116			129
Comprehensive (loss) income				(241	)		(44	)		413			658
Attributable to
Equity holders of Agrium				(243	)		(46	)		408			654
Non-controlling interests				2			2			5			4
Comprehensive (loss) income				(241	)		(44	)		413			658

See accompanying notes.

2

AGRIUM INC.

Condensed Consolidated Interim Balance Sheets

(Unaudited)

			September 30,						December 31,
(millions of U.S. dollars)	Notes		2017			2016			2016
Assets
Current assets
Cash and cash equivalents				246			311			412
Accounts receivable				3,375			2,962			2,208
Income taxes receivable				30			52			33
Inventories				2,657			2,666			3,230
Prepaid expenses and deposits				150			133			855
Other current assets				122			132			123
Assets held for sale		6		126			—			—
				6,706			6,256			6,861
Property, plant and equipment				6,833			6,935			6,818
Intangibles				536			638			566
Goodwill				2,195			2,033			2,095
Investments in associates and joint ventures				516			624			541
Other assets				59			56			48
Deferred income tax assets				24			38			34
				16,869			16,580			16,963
Liabilities and shareholders’ equity
Current liabilities
Short-term debt		5		1,882			1,740			604
Accounts payable				3,257			2,938			4,662
Income taxes payable				14			3			17
Current portion of long-term debt		5		11			110			110
Current portion of other provisions				54			67			59
				5,218			4,858			5,452
Long-term debt		5		4,399			4,400			4,398
Post-employment benefits				140			163			141
Other provisions				341			332			322
Other liabilities				67			64			68
Deferred income tax liabilities				455			434			408
				10,620			10,251			10,789
Shareholders’ equity
Share capital				1,773			1,764			1,766
Retained earnings				5,565			5,677			5,634
Accumulated other comprehensive loss				(1,095	)		(1,118	)		(1,231	)
Equity holders of Agrium				6,243			6,323			6,169
Non-controlling interests				6			6			5
Total equity				6,249			6,329			6,174
				16,869			16,580			16,963

See accompanying notes.

3

AGRIUM INC.

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited)

			Three months ended September 30,						Nine months ended September 30,
(millions of U.S. dollars)	Notes		2017			2016(a)			2017			2016 (a)
Operating
Net (loss) earnings from continuing operations				(69	)		(38	)		475			515
Adjustments for
Depreciation and amortization				121			119			392			362
Earnings from associates and joint ventures				(4	)		(3	)		(32	)		(31	)
Share-based payments				40			5			40			22
Unrealized (gain) loss on derivative financial instruments				(8	)		14			(1	)		36
Unrealized foreign exchange loss (gain)				31			21			31			(20	)
Interest income				(17	)		(20	)		(43	)		(49	)
Finance costs				80			66			226			206
Income taxes				(32	)		(13	)		193			205
Other				11			(2	)		4			(3	)
Interest received				18			21			45			50
Interest paid				(93	)		(83	)		(240	)		(223	)
Income taxes received (paid)				41			(112	)		(13	)		(277	)
Dividends from associates and joint ventures				2			46			11			48
Net changes innon-cash working capital				(435	)		(232	)		(1,353	)		(629	)
Cash (used in) provided by operating activities				(314	)		(211	)		(265	)		212
Investing
Business acquisitions, net of cash acquired				(110	)		(141	)		(184	)		(316	)
Capital expenditures				(161	)		(143	)		(458	)		(531	)
Capitalized borrowing costs				—			(6	)		(12	)		(18	)
Purchase of investments				(9	)		(20	)		(59	)		(61	)
Proceeds from sale of investments				15			14			64			78
Proceeds from sale of property, plant and equipment				7			4			28			14
Other				(3	)		(10	)		(11	)		(18	)
Net changes innon-cash working capital				—			3			(51	)		(5	)
Cash used in investing activities				(261	)		(299	)		(683	)		(857	)
Financing
Short-term debt		5		654			682			1,269			904
Repayment of long-term debt		5		(3	)		(10	)		(108	)		(16	)
Dividends paid				(121	)		(121	)		(362	)		(362	)
Cash provided by financing activities				530			551			799			526
Effect of exchange rate changes on cash and cash equivalents				(14	)		(11	)		(7	)		(58	)
(Decrease) increase in cash and cash equivalents from continuing operations				(59	)		30			(156	)		(177	)
Cash and cash equivalents used in discontinued operations		6		(14	)		(26	)		(10	)		(27	)
Cash and cash equivalents – beginning of period				319			307			412			515
Cash and cash equivalents – end of period				246			311			246			311

(a)    Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

See accompanying notes.

4

AGRIUM INC.

Condensed Consolidated Interim Statements of Shareholders’ Equity

(Unaudited)

								Other comprehensive income (loss)
(millions of U.S. dollars, except per share data)	Millions of common shares		Share capital		Retained earnings			Cash flow hedges			Comprehensive loss of associates and joint ventures			Foreign currency translation			Total			Equity holders of Agrium			Non- controlling interests			Total equity
December 31, 2015		138		1,757		5,533			(56	)		(17	)		(1,214	)		(1,287	)		6,003			4			6,007
Net earnings		—		—		525			—			—			—			—			525			4			529
Other comprehensive income (loss), net of tax
Post-employment benefits		—		—		(18	)		—			—			—			—			(18	)		—			(18	)
Other		—		—		—			(8	)		2			153			147			147			—			147
Comprehensive income (loss), net of tax		—		—		507			(8	)		2			153			147			654			4			658
Dividends ($2.625 per share)		—		—		(363	)		—			—			—			—			(363	)		—			(363	)
Non-controlling interest transactions		—		—		—			—			—			—			—			—			(2	)		(2	)
Share-based payment transactions		—		7		—			—			—			—			—			7			—			7
Reclassification of cash flow hedges, net of tax		—		—		—			22			—			—			22			22			—			22
September 30, 2016		138		1,764		5,677			(42	)		(15	)		(1,061	)		(1,118	)		6,323			6			6,329
December 31, 2016		138		1,766		5,634			(25	)		(51	)		(1,155	)		(1,231	)		6,169			5			6,174
Net earnings		—		—		293			—			—			—			—			293			4			297
Other comprehensive income (loss), net of tax
Post-employment benefits		—		—		(2	)		—			—			—			—			(2	)		—			(2	)
Other		—		—		—			(43	)		(41	)		201			117			117			1			118
Comprehensive income (loss), net of tax		—		—		291			(43	)		(41	)		201			117			408			5			413
Dividends ($2.625 per share)		—		—		(363	)		—			—			—			—			(363	)		—			(363	)
Non-controlling interest transactions		—		—		3			—			—			(2	)		(2	)		1			(4	)		(3	)
Share-based payment transactions		—		7		—			—			—			—			—			7			—			7
Reclassification of cash flow hedges, net of tax		—		—		—			21			—			—			21			21			—			21
September 30, 2017		138		1,773		5,565			(47	)		(92	)		(956	)		(1,095	)		6,243			6			6,249

See accompanying notes.

5

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

1. Corporate Management

Corporate information

Agrium Inc. (“Agrium”) is incorporated under the laws of Canada with common shares listed under the symbol “AGU” on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). Our Corporate head office is located at 13131 Lake Fraser Drive S.E., Calgary, Canada. We conduct our operations globally from our Wholesale head office in Calgary and our Retail head office in Loveland, Colorado, United States. In these financial statements, “we”, “us”, “our” and “Agrium” mean Agrium Inc., its subsidiaries and joint arrangements.

We categorize our operating segments within the Retail and Wholesale business units as follows:

• Retail: Distributes crop nutrients, crop protection products, seed and merchandise and provides financial and other services directly to growers through a network of farm centers in two geographical segments:

• North America including the United States and Canada

• International including Australia and South America

• Wholesale:Produces, markets and distributes crop nutrients and industrial products as follows:

• Nitrogen: Manufacturing in Alberta and Texas

• Potash: Mining and processing in Saskatchewan

• Phosphate: Production facilities in Alberta

• Wholesale Other: Producing blended crop nutrients andEnvironmentally Smart Nitrogen^® (ESN) polymer-coated nitrogen crop nutrients, and operating joint ventures and associates

Additional information on our operating segments is included in note 2.

Seasonality in our business results from increased demand for our products during planting seasons. Sales are generally higher in spring and fall.

Discontinued operations and assets held for sale

During the quarter, we classified the results of our Conda phosphate operations (CPO) as assets held for sale as described in note 6. The operating results of CPO, previously included in our Phosphate operating segment, are presented in discontinued operations for the periods ended September 30, 2017, and have been restated for the comparative periods ended September 30, 2016. Amounts shown in our operating segments note represent results from continuing operations.

6

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

2. Operating Segments

Segment information by business unit	Three months ended September 30,
	2017												2016
	Retail			Wholesale			Other (a)			Total			Retail			Wholesale (b)			Other (a)(b)			Total
Sales - external		2,059			323			—			2,382			1,849			343			—			2,192
- inter-segment		8			120			(128	)		—			8			102			(110	)		—
Total sales		2,067			443			(128	)		2,382			1,857			445			(110	)		2,192
Cost of product sold		1,549			397			(121	)		1,825			1,375			361			(112	)		1,624
Gross profit		518			46			(7	)		557			482			84			2			568
Gross profit (%)		25			10						23			26			19						26
Expenses
Selling		468			6			(4	)		470			443			7			(4	)		446
General and administrative		21			6			29			56			26			7			27			60
Share-based payments		—			—			40			40			—			— ��			5			5
Loss (earnings) from associates and joint ventures		2			(6	)		—			(4	)		2			(5	)		—			(3	)
Other (income) expenses		(10	)		7			19			16			(19	)		12			52			45
Earnings (loss) before finance costs and income taxes		37			33			(91	)		(21	)		30			63			(78	)		15
Finance costs		—			—			80			80			—			—			66			66
Earnings (loss) before income taxes		37			33			(171	)		(101	)		30			63			(144	)		(51	)
Depreciation and amortization		73			44			4			121			71			44			4			119
Finance costs		—			—			80			80			—			—			66			66
EBITDA(c)		110			77			(87	)		100			101			107			(74	)		134

(a) Includes inter-segment eliminations

(b) Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

(c) EBITDA is net earnings (loss) before finance costs, income taxes, depreciation and amortization, and net earnings (loss) from discontinued operations.

7

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

Segment information by business unit	Nine months ended September 30,
	2017												2016
	Retail			Wholesale			Other (a)			Total			Retail			Wholesale (b)			Other (a)(b)			Total
Sales - external		9,980			1,336			—			11,316			9,907			1,312			—			11,219
- inter-segment		34			489			(523	)		—			31			522			(553	)		—
Total sales		10,014			1,825			(523	)		11,316			9,938			1,834			(553	)		11,219
Cost of product sold		7,763			1,441			(530	)		8,674			7,775			1,413			(599	)		8,589
Gross profit		2,251			384			7			2,642			2,163			421			46			2,630
Gross profit (%)		22			21						23			22			23						23
Expenses
Selling		1,490			18			(13	)		1,495			1,423			22			(12	)		1,433
General and administrative		74			18			84			176			76			22			78			176
Share-based payments		—			—			40			40			—			—			22			22
(Earnings) loss from associates and joint ventures		(8	)		(25	)		1			(32	)		(5	)		(27	)		1			(31	)
Other (income) expenses		(21	)		32			58			69			(14	)		54			64			104
Earnings (loss) before finance costs and income taxes		716			341			(163	)		894			683			350			(107	)		926
Finance costs		—			—			226			226			—			—			206			206
Earnings (loss) before income taxes		716			341			(389	)		668			683			350			(313	)		720
Depreciation and amortization		215			164			13			392			206			146			10			362
Finance costs		—			—			226			226			—			—			206			206
EBITDA		931			505			(150	)		1,286			889			496			(97	)		1,288

(a) Includes inter-segment eliminations

(b) Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

8

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

Segment information – Retail	Three months ended September 30,
	2017								2016
	North								North
	America			International		Retail			America			International			Retail
Sales - external		1,575			484		2,059			1,398			451			1,849
- inter-segment		8			—		8			8			—			8
Total sales		1,583			484		2,067			1,406			451			1,857
Cost of product sold		1,196			353		1,549			1,047			328			1,375
Gross profit		387			131		518			359			123			482
Expenses
Selling		383			85		468			358			85			443
General and administrative		14			7		21			19			7			26
Loss from associates and joint ventures		2			—		2			2			—			2
Other (income) expenses		(12	)		2		(10	)		(14	)		(5	)		(19	)
Earnings (loss) before income taxes		—			37		37			(6	)		36			30
Depreciation and amortization		70			3		73			65			6			71
EBITDA		70			40		110			59			42			101

9

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

Segment information – Retail	Nine months ended September 30,
	2017									2016
	North									North
	America			International			Retail			America			International			Retail
Sales - external		8,364			1,616			9,980			8,233			1,674			9,907
- inter-segment		34			—			34			31			—			31
Total sales		8,398			1,616			10,014			8,264			1,674			9,938
Cost of product sold		6,523			1,240			7,763			6,446			1,329			7,775
Gross profit		1,875			376			2,251			1,818			345			2,163
Expenses
Selling		1,233			257			1,490			1,179			244			1,423
General and administrative		53			21			74			54			22			76
Earnings from associates and joint ventures		(7	)		(1	)		(8	)		(4	)		(1	)		(5	)
Other (income) expenses		(8	)		(13	)		(21	)		8			(22	)		(14	)
Earnings before income taxes		604			112			716			581			102			683
Depreciation and amortization		203			12			215			189			17			206
EBITDA		807			124			931			770			119			889

10

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

Segment information – Wholesale	Three months ended September 30,
	2017													2016
								Wholesale													Wholesale
	Nitrogen		Potash		Phosphate			Other(a)			Wholesale			Nitrogen		Potash			Phosphate (b)		Other(a)			Wholesale
Sales - external		140		79		25			79			323			173		73			31		66			343
- inter-segment		41		21		35			23			120			42		15			29		16			102
Total sales		181		100		60			102			443			215		88			60		82			445
Cost of product sold		153		90		64			90			397			156		87			49		69			361
Gross profit		28		10		(4	)		12			46			59		1			11		13			84
Expenses
Selling		3		1		—			2			6			3		1			—		3			7
General and administrative		3		1		—			2			6			2		2			—		3			7
Earnings from associates and joint ventures		—		—		—			(6	)		(6	)		—		—			—		(5	)		(5	)
Other expenses (income)		3		3		—			1			7			8		4			2		(2	)		12
Earnings (loss) before income taxes		19		5		(4	)		13			33			46		(6	)		9		14			63
Depreciation and amortization		17		21		3			3			44			16		22			4		2			44
EBITDA		36		26		(1	)		16			77			62		16			13		16			107

(a) Includes ammonium sulfate, ESN and other products

(b) Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

11

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

Segment information – Wholesale	Nine months ended September 30,
	2017												2016
							Wholesale													Wholesale
	Nitrogen		Potash		Phosphate		Other(a)			Wholesale			Nitrogen		Potash			Phosphate (b)		Other(a)			Wholesale
Sales - external		599		285		96		356			1,336			642		206			108		356			1,312
- inter-segment		190		97		94		108			489			217		108			100		97			522
Total sales		789		382		190		464			1,825			859		314			208		453			1,834
Cost of product sold		571		293		179		398			1,441			557		283			189		384			1,413
Gross profit		218		89		11		66			384			302		31			19		69			421
Expenses
Selling		9		4		1		4			18			10		5			1		6			22
General and administrative		8		3		1		6			18			9		5			1		7			22
Earnings from associates and joint ventures		—		—		—		(25	)		(25	)		—		—			—		(27	)		(27	)
Other expenses (income)		18		10		4		—			32			30		24			2		(2	)		54
Earnings (loss) before income taxes		183		72		5		81			341			253		(3	)		15		85			350
Depreciation and amortization		59		82		12		11			164			52		73			11		10			146
EBITDA		242		154		17		92			505			305		70			26		95			496

(a) Includes ammonium sulfate, ESN and other products

(b) Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

12

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

Gross profit by product line	Three months ended September 30,																	Nine months ended September 30,
	2017									2016								2017								2016
				Cost of									Cost of								Cost of								Cost of
				product			Gross						product			Gross					product			Gross					product			Gross
	Sales			sold			profit			Sales			sold			profit		Sales			sold			profit		Sales			sold			profit
Retail
Crop nutrients		528			408			120			502			384			118		3,231			2,551			680		3,531			2,846			685
Crop protection products		1,117			874			243			983			757			226		4,225			3,367			858		4,064			3,246			818
Seed		59			38			21			59			37			22		1,521			1,247			274		1,361			1,107			254
Merchandise		187			158			29			175			146			29		496			418			78		454			378			76
Services and other(a)		176			71			105			138			51			87		541			180			361		528			198			330
		2,067			1,549			518			1,857			1,375			482		10,014			7,763			2,251		9,938			7,775			2,163
Wholesale
Nitrogen		181			153			28			215			156			59		789			571			218		859			557			302
Potash		100			90			10			88			87			1		382			293			89		314			283			31
Phosphate(b)		60			64			(4	)		60			49			11		190			179			11		208			189			19
Ammonium sulfate, ESN and other		102			90			12			82			69			13		464			398			66		453			384			69
		443			397			46			445			361			84		1,825			1,441			384		1,834			1,413			421
Other inter-segment eliminations(b)		(128	)		(121	)		(7	)		(110	)		(112	)		2		(523	)		(530	)		7		(553	)		(599	)		46
Total		2,382			1,825			557			2,192			1,624			568		11,316			8,674			2,642		11,219			8,589			2,630
Wholesale share of joint ventures
Nitrogen		78			65			13			66			53			13		148			120			28		131			111			20
Total Wholesale including proportionate share in joint ventures		521			462			59			511			414			97		1,973			1,561			412		1,965			1,524			441

(a) Includes financial services products

(b) Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

13

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

Selected volumes and per tonne information	Three months ended September 30,
	2017									2016
					Cost of									Cost of
	Sales		Selling		product					Sales		Selling		product
	tonnes		price		sold		Margin			tonnes		price		sold		Margin
	(000’s)		($/tonne)		($/tonne)		($/tonne)			(000’s)		($/tonne)		($/tonne)		($/tonne)
Retail
Crop nutrients
North America		843		444		329		115			757		458		332		126
International		400		384		329		55			406		384		327		57
Total crop nutrients		1,243		425		329		96			1,163		432		331		101
Wholesale
Nitrogen
North America
Ammonia		134		364							207		378
Urea		355		256							359		269
Other		179		229							173		234
Total nitrogen		668		270		228		42			739		291		212		79
Potash
North America		251		253							198		223
International		211		171							298		148
Total potash		462		216		193		23			496		178		175		3
Phosphate(a)		140		436		465		(29	)		143		418		343		75
Ammonium sulfate		85		251		144		107			71		242		120		122
ESN and other		259									208
Total Wholesale		1,614		274		246		28			1,657		268		217		51
Wholesale share of joint ventures
Nitrogen		277		283		234		49			231		286		231		55
Total Wholesale including proportionate share in joint ventures		1,891		276		245		31			1,888		271		220		51

(a) Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

14

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

Selected volumes and per tonne information	Nine months ended September 30,
	2017									2016
						Cost of								Cost of
	Sales			Selling		product				Sales		Selling		product
	tonnes			price		sold		Margin		tonnes		price		sold		Margin
	(000’s)			($/tonne)		($/tonne)		($/tonne)		(000’s)		($/tonne)		($/tonne)		($/tonne)
Retail
Crop nutrients
North America		6,582			417		321		96		6,410		459		360		99
International		1,400			347		311		36		1,561		378		345		33
Total crop nutrients		7,982			405		320		85		7,971		443		357		86
Wholesale
Nitrogen
North America
Ammonia		774			390						831		414
Urea		1,175			282						1,181		302
Other		672			230						636		250
Total nitrogen		2,621			301		218		83		2,648		325		211		114
Potash			��
North America		1,006			252						901		218
International		806			160						748		157
Total potash		1,812			211		162		49		1,649		191		172		19
Phosphate(a)		444			427		405		22		449		463		420		43
Ammonium sulfate		284			269		124		145		242		279		119		160
ESN and other		1,177									1,112
Total Wholesale		6,338			288		228		60		6,100		301		232		69
Wholesale share of joint ventures
Nitrogen		513			289		234		55		447		293		249		44
Total Wholesale including proportionate share in joint ventures		6,851			288		228		60		6,547		300		233		67

(a) Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

15

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

3. Risk Management

Commodity price risk

Natural gas derivative financial instruments outstanding(notional amounts in millions of MMBtu)

September 30,

December 31,

2017

2016

Average

Fair value

Average

Fair value

contract

of assets

contract

of assets

Notional

Maturities

price(a)

(liabilities)

Notional

Maturities

price(a)

(liabilities)

Designated as hedges

AECO swaps

55

2017 – 2019

2.48

(54

)

48

2017 – 2018

2.90

(21

)

(54

)

(21

)

(a) U.S. dollars per MMBtu

	Fair value of assets (liabilities)
Maturities of natural gas derivative contracts	2017			2018			2019
AECO swaps		(15	)		(32	)		(7	)

Impact of change in fair value of natural gas derivative financial instruments	September 30,		December 31,
	2017		2016
A$10-million impact to other comprehensive income requires movement in gas prices per MMBtu		0.18		0.29

The underlying risk of the derivative contracts is identical to the hedged risk; accordingly we have established a ratio of 1:1 for all natural gas hedges. Due to a strong correlation between AECO future contract prices and our delivered cost, we did not experience any ineffectiveness on our hedges, and accordingly we have recorded the full change in the fair value of natural gas derivative contracts designated as hedges to other comprehensive income.

Currency risk

Foreign exchange derivative financial instruments outstanding(notional amounts in millions of U.S. dollars)
	September 30,									December 31,
	2017									2016
					Average		Fair value							Average		Fair value
					contract		of assets							contract		of assets
Sell/Buy	Notional		Maturities		price(a)		(liabilities)			Notional		Maturities		price(a)		(liabilities)
Forwards
USD/CAD		342		2017		1.25		—			—		—		—		—
CAD/USD		109		2017		1.23		1			180		2017		1.34		—
USD/AUD		20		2017		1.29		—			14		2017		1.32		(1	)
AUD/USD		41		2017 – 2018		1.29		(1	)		22		2017		1.34		1
CNY/AUD		42		2017 – 2018		6.72		—			23		2017		7.16		—
Options
USD/CAD – buy USD puts		58		2017		1.25		1			—		—		—		—
USD/CAD – sell USD calls		67		2017		1.31		—			—		—		—		—
CAD/USD – buy USD calls		16		2017		1.34		—			—		—		—		—
CAD/USD – sell USD puts		4		2017		1.17		—			—		—		—		—
								1									—

(a) Foreign currency per U.S. dollar

16

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

	September 30,						December 31,
	2017						2016
	Fair value				Carrying		Fair value				Carrying
	Level 1		Level 2		value		Level 1		Level 2		value
Financial instruments measured at fair value on a recurring basis
Cash and cash equivalents		—		246		246		—		412		412
Accounts receivable – derivatives		—		3		3		—		2		2
Other current financial assets – marketable securities		18		102		120		22		99		121
Othernon-current financial assets – derivatives		—		4		4		—		—		—
Accounts payable – derivatives		—		45		45		—		7		7
Other financial liabilities – derivatives		—		15		15		—		16		16
Financial instruments measured at amortized cost
Current portion of long-term debt
Debentures		—		—		—		—		101		100
Fixed and floating rate debt		—		11		11		—		10		10
Long-term debt
Debentures		—		4,874		4,375		—		4,600		4,373
Fixed and floating rate debt		—		24		24		—		25		25

There have been no transfers between Level 1 and Level 2 fair value measurements in the nine months ended September 30, 2017. We do not measure any of our financial instruments using Level 3 inputs.

4. Expenses

	Three months ended						Nine months ended
Other expenses	September 30,						September 30,
	2017			2016(a)			2017			2016(a)
Loss on foreign exchange and related derivatives		7			2			11			10
Interest income		(17	)		(20	)		(43	)		(49	)
Environmental remediation and asset retirement obligations		2			4			1			9
Bad debt expense		8			3			37			32
Potash profit and capital tax		3			2			9			10
Merger and related costs		11			17			42			17
Other		2			37			12			75
		16			45			69			104

(a) Certain amounts have been restated as a result of discontinued operations. See note 6, Additional Information.

5. Debt

					September 30,		December 31,
	Maturity		Rate (%) (a)		2017		2016
Short-term debt
Commercial paper		2017		1.56		1,698		306
Credit facilities				7.53		184		298
						1,882		604

(a) Weighted average rates at September 30, 2017

17

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

	Short-term debt		Long-term debt (a)
December 31, 2016		604		4,508
Cash flows reported as financing activities		1,269		(108	)
Non-cash changes
Other adjustments		—		9
Foreign currency translation		9		1
September 30, 2017		1,882		4,410

(a) Includes current portion

6. Additional Information

Planned Merger with Potash Corporation of Saskatchewan Inc. (“PotashCorp”)

Agrium and PotashCorp entered into an agreement dated September 11, 2016 (the “Arrangement Agreement”), under which the companies will combine in a merger of equals into a newly incorporated parent entity, which will be named Nutrien, to be formed to manage and hold the combined businesses of both Agrium and PotashCorp. The Arrangement Agreement will be implemented by a proposed plan of arrangement (the “Arrangement”). Under the Arrangement, Agrium shareholders will receive 2.23 Nutrien shares for each Agrium share held, and PotashCorp shareholders will receive 0.40 of a Nutrien share for each PotashCorp share held. On November 3, 2016, shareholders of both Agrium and PotashCorp approved the Arrangement.

Subsequent to September 30, 2017, regulators in India and China approved the merger, subject to conditions including the divestment of certain of PotashCorp’s minority shareholdings in Arab Potash Company, Israel Chemicals Ltd., and Sociedad Quimica y Minera de Chile S.A., and Sinofert Holdings Limited within certain specified time periods over the 18 months following the merger.

Agrium and PotashCorp are working to resolve outstanding regulatory approvals in the U.S. and we anticipate the Arrangement will be completed by the end of the fourth quarter of 2017.

Additional information and the full text of the Arrangement Agreement and the Arrangement are included in Agrium and PotashCorp’s joint proxy circular filed on SEDAR on October 6, 2016.

Discontinued Operations and Assets Held for Sale

On September 7, 2017, Agrium and PotashCorp provided an update on the regulatory approval process related to the proposed merger indicating that they are working to resolve final issues in superphosphoric acid and nitric acid. A potential remedy to outstanding issues is the disposition of our CPO and North Bend nitrogen facilities. A sale of CPO and North Bend assets by September 2018 is considered highly probable as management has committed to a sale and has begun to actively market the assets. As a result, we have classified these assets as held for sale and havere-measured them to fair value less costs to sell (FVLCS). FVLCS was determined primarily based on expressions of interest received from potential third-party buyers, and was corroborated by discounted cash flows derived from our forecasts. Because we did not base the inputs of our fair value measurement on observable market transactions, we classified the fair value as a Level 3 measurement. In November 2017, we entered into an agreement with a third party to dispose of our CPO and North Bend assets, subject to the approval of the Federal Trade Commission.

As CPO comprises operations and cash flows that can be clearly distinguished operationally and for financial reporting purposes, its operating results and the impact ofre-measurement to FVLCS is included in discontinued operations for the three and nine months ended September 30, 2017, and restated for the comparative periods ended September 30, 2016. Amounts shown exclude elimination of intercompany transactions.

The majority of the remaining value of assets held for sale is assigned to inventories.

18

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and nine months ended September 30, 2017

(millions of U.S. dollars, unless otherwise stated)

(Unaudited)

	Three months ended						Nine months ended
Condensed information of discontinued operations(a)	September 30,						September 30,
	2017			2016			2017			2016
Operating information
Discontinued operations of assets held for sale
Sales		77			73			219			215
Expenses		83			75			227			205
(Loss) earnings before income taxes		(6	)		(2	)		(8	)		10
Income tax recovery		2			1			8			4
Loss before measurement of assets held for sale		(4	)		(1	)		—			14
Loss on measurement of assets held for sale		(295	)		—			(295	)		—
Income tax recovery on loss on measurement of assets held for sale		117			—			117			—
Net (loss) earnings from discontinued operations		(182	)		(1	)		(178	)		14
Cash flow information
Operating activities		(4	)		(22	)		10			(7	)
Investing activities		(10	)		(4	)		(20	)		(20	)
Cash used in discontinued operations		(14	)		(26	)		(10	)		(27	)
(a)    There are no cumulative income or expenses included in other comprehensive income relating to CPO.

Business Acquisitions

During the quarter, our Retail business unit acquired 25 farm centers located in the U.S. for preliminary purchase consideration of$110-million, subject to working capital adjustments. We anticipate that the majority of the fair value of the acquired assets will be comprised of property, plant and equipment, and goodwill. Valuations of the acquired businesses are in progress and are not complete due to the timing of the closing dates.

Recent Accounting Pronouncements

Our cross-functional project team has been working since September of 2016 to assess the impact of IFRS 15 and 16 and prepare for implementation. The new standards will not have any cash impact and accordingly will not affect the economics of our underlying customer contracts or our leases. We expect to implement changes to our internal control over financial reporting on adoption of each standard, including new policies, training and ongoing contract review requirements.

• IFRS 15Revenue from Contracts with Customers – Beginning in 2017, we initiated the second phase of our planned review of our contracts with customers. This included reviewing our significant revenue portfolios in detail, determining and documenting changes to our business processes and internal controls, and validating our conclusions as to the impact to our consolidated financial statements. Similar to our assessment in 2016, we expect this standard will not have a material impact to our revenues as the majority of our contracts with customers are short-term in nature. We expect that our financial statements will include expanded disclosures about revenues from contracts with customers upon adoption of IFRS 15. We will adopt this standard effective January 1, 2018.

• IFRS 16Leases – We have reviewed our existing lease agreements and considered other agreements that could contain leases. We estimate that IFRS 16 will have a material impact on our assets and liabilities and will result in material reclassifications of interest and depreciation expenses within our statement of operations. We will adopt this standard effective January 1, 2019.

19