Exhibit 99.1


		News Release

February 5, 2018

Nutrien Provides 2018 Guidance and Announces Agrium and PotashCorp Fourth-Quarter Earnings

Saskatoon, Saskatchewan, February 5, 2018 – Nutrien Ltd. (Nutrien) announced today fourth-quarter 2017 results for Agrium Inc. (Agrium) and Potash Corporation of Saskatchewan Inc. (PotashCorp) and provided financial guidance for 2018.

HIGHLIGHTS

•

Agrium fourth-quarter earnings from continuing operations, adjusted for items not included in guidance, of $0.78¹ per share²(see page 5 for a reconciliation to net earnings from continuing operations of $0.19 per share)

•

PotashCorp fourth-quarter adjusted earnings of $0.06 per share (see page 11 for a reconciliation to net loss of $0.09 per share)

•

2017 earnings for Agrium were supported by record Retail EBITDA³ of $1.2 billion and margins of 10 percent while stronger potash prices, sales volumes and lower cash costs per tonne benefited both companies

•

Nutrien full-year 2018 guidance of $2.10 to $2.60 earnings per share from continuing operations, excluding incremental depreciation and amortization related to purchase price allocation of $150 million to $300 million

•

Nutrien 2018 EBITDA of $3.2 billion to $3.7 billion

•

Nutrien sold its equity stake in Israel Chemicals Ltd. (ICL) in January 2018 for net proceeds of $685 million

•

Nutrien announced an agreement to purchase Agrichem, a leading Brazilian specialty plant nutrition company with total annual historical net sales of over $55 million

•

Nutrien achieved over $40 million in run-rate synergies year-to-date 2018

CEO COMMENTARY

“Nutrien is a global integrated crop inputs provider focused on delivering yield-enhancing products and services to our customers in a sustainable manner, while maximizing shareholder value,” said Nutrien President and CEO Chuck Magro. “Our significant positions in retail, potash and nitrogen provide multiple avenues to generate significant value and we remain focused on capturing half a billion dollars in annual merger synergies by the end of 2019.

“We further expect to realize significant proceeds from the ongoing sale of equity positions and will continue to reinvest in growing our retail business and return cash to shareholders,” added Mr. Magro.

MARKET OUTLOOK

Agriculture Fundamentals


U.S. Planted Acres (millions)
Crop	2016	2017	2018F
Corn	94.0	90.2	89.0-91.0
Soybean	83.4	90.1	89.0-91.0
Wheat	50.2	46.0	45.0-47.0
Cotton	10.1	12.6	12.5-13.0

Source: USDA

•

Despite historically high crop production in many key growing regions in 2017, the United States Department of Agriculture (“USDA”) projects that global grain consumption will exceed production during the 2017/18 crop year. Global grain and oilseed demand has grown by 2.7 percent per year over the past five years, the highest five-year growth period since the early 1980s.

•

Major U.S. crop prices are currently similar to year-ago levels, leading us to expect minimal shifts in crop area in 2018. The development of the South American corn and soybean crops, particularly the second corn crop in Brazil, will be a driver of crop prices in the coming months and may influence U.S. planting decisions.

•

Nutrient prices remain affordable, which we expect will lead to robust applications in the North American spring season.

•

We anticipate that growers will continue to optimize crop input expenditures, similar to recent years. Record U.S. corn yields in the past two years provides evidence that growers continue to focus on increasing productivity by utilizing crop inputs and solutions.

Potash


Global Demand (millions of tonnes KCl)
Market	2016	2017E	2018F
China	14.1	15.1	15.5-16.0
India	3.8	4.5	4.5-5.0
Other Asia	9.0	9.6	9.5-10.0
Latin America	11.7	12.2	12.0-12.5
North America	9.7	10.2	9.5-10.0
Other	12.0	12.4	12.5-13.0
World total shipments	60.3	64.0	64.0-66.0*

*	Forecast world total shipments range is narrower than the sum of individual market ranges

•

Global potash shipments set a new record of approximately 64 million tonnes in 2017 with significant growth achieved in all major markets. Downstream inventories ended 2017 at levels flat to lower than a year ago, meaning global shipments increased in response to rising consumption. We expect that demand will continue to be robust in 2018 and that annual global potash shipments will be between 64 and 66 million tonnes.

•

North American spring application rates are expected to remain normal supported by good affordability, and we anticipate shipments similar to the historical average but slightly below 2017.

•

Brazilian potash imports set a new record of 9.2 million tonnes in 2017 and inland inventories ended the year at historically low levels, indicating robust consumption and supportive of strong import demand in 2018.

•

Chinese and Indian potash demand was strong in 2017 and inventories ended the year flat to lower than 2016 levels. We expect continued demand growth in China and India in 2018 but at a slower pace than 2017 levels. Potash demand remains reasonably strong in other Asian countries amid stable and profitable prices for a wide range of key crops.

•

Most global potash producers have heavily committed sales volumes for the first quarter of 2018, leaving available supplies relatively tight. Greenfield potash capacity is anticipated to continue to ramp up in 2018, but we expect a portion of the new capacity will be offset by the closure of mines reaching end of life and product mix changes by some producers.

Nitrogen

•

Nitrogen prices have started 2018 firmer, with current benchmark nitrogen prices up between 15 to 40 percent from fourth quarter 2017 lows, depending on the product.

•

Global energy prices are expected to increase marginal production costs in 2018, as crude oil prices have increased approximately 20 percent year-over-year, supporting both formula-based gas contracts in Europe and LNG prices. Chinese production rates have been cut back by ongoing regulatory pressure, natural gas availability, significantly higher natural gas prices and continued strength in coal prices.

•

Indian urea inventories are very low, which should support import demand in the coming months, however import demand is expected to remain volatile as the country balances subsidy policy with changing market dynamics.

•

Net North American offshore imports of urea were down by 50 percent or 1.0 million tonnes from July through December 2017. The decrease in imports exceeded the increase in domestic production for the same period. As a result, North American offshore import requirements for first-half 2018 may approach similar levels as the first half of the prior year.

Phosphate

•

Higher input costs have lent support to phosphate prices but continue to weigh on margins. Sulfur prices have recently risen and remain approximately 50 percent above 2017 lows, while traded ammonia prices are up 50 to 70 percent from 2017 lows.

•

Production curtailments have reduced export availability from both the U.S. and China, which has provided some support to phosphate fertilizer prices.

FINANCIAL OUTLOOK AND GUIDANCE


2018 Annual Guidance Ranges	Annual
	Low	High
Earnings per share	$2.10	$2.60
Consolidated EBITDA (billions)	$3.2	$3.7
Retail EBITDA (billions)	$1.2	$1.3
Potash EBITDA (billions)	$1.1	$1.3
Nitrogen EBITDA (billions)	$0.9	$1.1
Potash sales tonnes (millions)	11.8	12.4
Nitrogen sales tonnes (millions) ^(a)	10.0	10.4
Effective tax rate on continuing operations	24%	25%
Sustaining capital expenditures (billions)	$1.0	$1.1


2018 Annual Assumptions & Sensitivities
FX rate CAD to USD	$	1.26
NYMEX natural gas ($US/MMBtu)	$	3.00
$20/tonne change in realized Potash selling prices ($/share)^(b)	$	0.24
$20/tonne change in realized Ammonia selling prices ($/share)^(b)	$	0.07
$20/tonne change in realized Urea selling prices ($/share)^(b)	$	0.09

(a)	Excludes ESN^®, Rainbow and Europe sales.

(b)	Sensitivities are calculated pre-synergies.

• Purchase Price Allocation (PPA) impact – Our 2018 earnings per share guidance excludes the impact of incremental depreciation and amortization of approximately $150 million to $300 million resulting from the fair valuing of Agrium’s assets and liabilities as of January 1, 2018 in accordance with purchase accounting.

• Harmonization of Accounting Policies – Harmonization of Agrium accounting policies to the accounting policies of PotashCorp is expected to reduce Retail EBITDA by approximately $35 million due to the reclassification of items previously considered as other finance costs and is included in our annual Retail EBITDA guidance.

• Synergies – In 2018, we expect to realize cash synergies of $175 million to $225 million and run rate synergies of $250 million by the end of 2018. We expect costs to achieve these ongoing synergies of $50 to $70 million in 2018, which are excluded from our earnings per share and EBITDA guidance.

• EPS – Based on the factors set out under the heading “Market Outlook” and the assumptions above, our full-year 2018 earnings per share guidance is $2.10 to $2.60. In addition to the PPA impact and costs of achieving synergies noted above, our guidance excludes share-based compensation expense (recovery). Equity earnings relating to investments now classified in discontinued operations are included in our earnings per share guidance.

AGRIUM RESULTS

Agrium fourth-quarter earnings from continuing operations totaled $27 million, down from the $69 million earned in the fourth quarter of 2016. Full-year earnings from continuing operations were $502 million compared to $584 million earned in 2016. Results for the quarter and full year were supported by record Retail business unit performance and higher potash sales volumes and margins, but were more than offset by lower nitrogen sales volumes and margins related to plant outages in the second half of 2017.

AGRIUM ADJUSTED NET EARNINGS AND GUIDANCE RELEVANT EARNINGS RECONCILIATION


	Three months ended December 31, 2017						Twelve months ended December 31, 2017
(millions of U.S. dollars, except per share amounts)	Expense		Net earnings from continuing operations impact (post-tax)		Per share ^(a)		Expense (Income)			Net earnings from continuing operations impact (post-tax)			Per share ^(a)
				27		0.19					502			3.60
Adjustments:
Share-based payments		29		22		0.16		69			49			0.36
Foreign exchange loss net of non-qualifying derivatives		3		2		0.02		14			10			0.08
Merger and related costs		52		39		0.28		94			67			0.50
Impact of Egyptian pound devaluation on investee earnings		—		—		—		(16	)		(11	)		(0.08	)
U.S. Tax Reform adjustment		9		9		0.07		9			9			0.07
Adjusted net earnings ^(b)				99		0.72					626			4.53
Environmental remediation liability expense		11		8		0.06		11			8			0.06
Gain on sale of assets		—		—		—		(7	)		(5	)		(0.04	)
Guidance relevant earnings ^(b)				107		0.78					629			4.55

(a)	Per share information attributable to equity holders of Agrium.

(b)

Effective tax rates of 25 percent for the quarter and 29 percent for the year were used for the adjusted net earnings, guidance relevant earnings, and per share calculations. These adjusted and guidance relevant earnings and per share information are non-IFRS measures. Refer to Selected Non-IFRS Financial Measures and Reconciliations and Supplemental Information.

Agrium Retail


	Three months ended December 31
(millions of U.S. dollars)	2017			2016			Change
Sales		2,089			1,828			261
Cost of product sold		(1,394	)		(1,205	)		(189	)
Gross profit		695			623			72
EBIT⁴		174			134			40
EBITDA		248			202			46
Selling expenses		(517	)		(476	)		(41	)

• EBITDA – Retail reported record EBITDA in the fourth quarter of 2017, a 23 percent increase over the previous record achieved in the same period last year. Higher sales for all our crop input products and services were driven by organic growth, recent acquisitions and a 22 percent increase in proprietary product sales.

• North American EBITDA increased by 17 percent this quarter compared to the same period last year, with higher nutrient and crop protection product demand in both the U.S. and Canada. International Retail operations achieved a record fourth quarter, with EBITDA up 40 percent year over year, supported by another record quarter for our Australian operations.

• Selling expenses – Total Retail selling expenses increased by 9 percent this quarter compared to the same period in 2016 as a result of acquisitions made in 2017. Selling expenses as a percentage of sales decreased to 25 percent this quarter compared to 26 percent in the same period of 2016.

Retail sales and gross profit by product line


(millions of U.S. dollars, except where noted)	Three months ended December 31
(millions of U.S. dollars, except where noted)	Sales				Gross profit				Gross profit (%)
		2017	2016	Change		2017	2016	Change		2017	2016
Crop nutrients		890	779	111		168	147	21		19	19
Crop protection products		712	620	92		327	296	31		46	48
Seed		107	101	6		51	43	8		48	43
Merchandise		187	167	20		28	27	1		15	16
Services and other		193	161	32		121	110	11		63	68

• Crop nutrients – Sales were 14 percent higher this quarter compared to the same period last year, due primarily to higher volumes, particularly with record ammonia applications in Canada and higher sales volumes in all other regions. Gross profit was 14 percent higher this quarter due to increased sales volumes, while gross profit margin per tonne remained relatively flat.

• Crop protection – Fourth-quarter sales increased by 15 percent compared to the same period last year, due to increased sales in both North America and International operations. The U.S. experienced strong demand for herbicides and fall weed burn-down products this quarter. Proprietary product sales in the quarter increased by 25 percent compared to 2016’s fourth quarter, with the largest increase in market penetration occurring in Australia. Gross profit for the quarter was up 10 percent over the same period last year, due to higher sales volumes across all regions and proprietary products. However, gross profit as a percentage of sales decreased 2 percentage points this quarter due to product mix considerations and a higher percentage of sales to wholesale customers.

• Seed – Gross profit in the fourth quarter increased 19 percent compared to the same period last year, due to purchases in the U.S. that were delayed from the third quarter of 2017. Gross profit as a percentage of sales increased to 48 percent from 43 percent in the fourth quarter of last year, due to a return to a higher sales mix to retail customers relative to wholesalers.

• Merchandise – Sales increased 12 percent and gross profit was up 4 percent in the fourth quarter of this year relative to the same period last year. The increase in sales was due to higher sales in Australia related to animal health management and higher fuel prices in our Canadian operations.

• Services and other – Sales increased by 20 percent and gross profit by 10 percent this quarter compared to the same period last year, due to higher livestock export shipments and wool commissions in Australia. It was also supported by higher sales in North America related to strong demand for fall nutrient and crop protection application services. Gross profit as a percentage of sales declined this quarter due to lower Australian cattle prices.

Agrium Wholesale


	Three months ended December 31
(millions of U.S. dollars)	2017			2016⁵			Change
Sales		534			594			(60	)
Sales tonnes (000’s)		1,879			2,161			(282	)
Cost of product sold		(447	)		(459	)		12
Gross profit		87			135			(48	)
EBIT		76			151			(75	)
EBITDA		134			208			(74	)
Expenses		(11	)		16			(27	)

• EBITDA – Wholesale gross profit and EBITDA this quarter were lower than the same period last year, as stronger results from our potash segment were more than offset by lower results for our nitrogen and phosphate segments. Downtime in our nitrogen and phosphate facilities impacted sales volumes and resulted in higher cost of product sold per tonne. Higher phosphate rock and sulfur input costs and unfavorable changes in the Canadian dollar exchange rate also increased the cost of product sold.

Agrium Potash


	Three months ended December 31
(millions of U.S. dollars)	2017			2016			Change
Sales		137			105			32
Cost of product sold		(97	)		(84	)		(13	)
Gross profit		40			21			19
EBIT		33			13			20
EBITDA		64			39			25

• Gross Profit – Potash gross profit was 90 percent higher than the fourth quarter of 2016, due to a combination of higher prices and sales volumes, which more than offset an increase in the cost of product sold per tonne.


	Three months ended December 31
	2017			2016			Change
Sales tonnes (000’s)
North America		329			286			43
International		291			304			(13	)
Selling price ($/tonne)
North America		269			211			58
International		168			148			20
Total		221			179			42
Cost of product sold ($/tonne)		(157	)		(143	)		(14	)
Margin ($/tonne)		64			36			28

• Volumes – Agrium sold 5 percent higher volumes of potash in the fourth quarter of 2017 compared to the same period in 2016. Increased volumes sold domestically more than offset lower international sales, which were impacted by a reduction in Agrium’s Canpotex⁶ allocation relative to the same period last year.

• Price – Global benchmark potash prices were higher in the fourth quarter of 2017 compared to 2016, and this was reflected in Agrium’s realized selling prices, which were 27 percent higher domestically and 14 percent higher on international sales.

• Costs – Cost of product sold per tonne was 10 percent higher in this year’s quarter versus the prior year’s fourth quarter, due to unfavorable changes in the Canadian dollar exchange rate impacting production costs; higher freight costs; and a higher proportion of domestic sales than the comparable period (that include freight and distribution in the cost of product sold). Agrium’s cash cost of product manufactured⁷ this quarter was $72 per tonne, a $10 per tonne increase over the same period last year.

Agrium Nitrogen


	Three months ended December 31
(millions of U.S. dollars)	2017			2016			Change
Sales		220			285			(65	)
Cost of product sold		(186	)		(200	)		14
Gross profit		34			85			(51	)
EBIT		26			76			(50	)
EBITDA		46			99			(53	)

• Gross Profit – Total nitrogen gross profit was significantly reduced this quarter compared to the same period last year, due to planned and unplanned maintenance outages in the second half of 2017 that reduced product availability in the fourth quarter and resulted in higher cost per tonne. Gross profit was also impacted by slightly lower realized pricing relative to the fourth quarter of 2016.


	Three months ended December 31
	2017			2016			Change
Sales tonnes (000’s)
Ammonia		261			334			(73	)
Urea		300			439			(139	)
Other		191			181			10
Selling price ($/tonne)
Ammonia		342			371			(29	)
Urea		287			274			13
Other		234			222			12
Total		293			298			(5	)
Cost of product sold ($/tonne)		(248	)		(209	)		(39	)
Margin ($/tonne)		45			89			(44	)

• Volumes – Total nitrogen sales volumes for the fourth quarter were 21 percent lower than the same period in 2016 due to lower production volumes.

• Price – Agrium’s fourth-quarter average realized price decreased compared to the prior year’s fourth quarter, with price increases in urea and nitrogen solutions more than offset by lower ammonia pricing, a result of the timing of forward sales activity, and lower nitrate prices driven by lower Tampa ammonia-based contracts.

• Costs – Total cost of product sold was 7 percent lower than the same period last year, due to lower sales volumes this quarter. However, on a cost of product sold per tonne basis, costs increased by 19 percent, primarily due to fixed costs being spread over lower sales volumes.


Natural Gas Prices	Three months ended December 31
(U.S. dollars per MMBtu)	2017		2016		Change
Overall gas cost excluding realized derivative impact		1.77		2.52		(0.75	)
Realized derivative impact		0.70		0.07		0.63
Overall gas cost		2.47		2.59		(0.12	)
Average NYMEX		2.91		2.99		(0.08	)
Average AECO		1.54		2.12		(0.58	)

Agrium Phosphate


	Three months ended December 31
(millions of U.S. dollars)	2017			2016⁶			Change
Sales		47			81			(34	)
Cost of product sold		(49	)		(72	)		23
Gross profit		(2	)		9			(11	)
EBIT		(1	)		8			(9	)
EBITDA		4			13			(9	)

• Gross Profit – Total phosphate gross profit was a loss of $2 million compared to a profit of $9 million in the same period last year. The lower earnings were driven primarily by higher rock and sulfur costs as well as an extended maintenance shutdown at our Redwater facility, which increased cost of product sold per tonne.


	Three months ended December 31
	2017			2016			Change
Sales tonnes (000’s)		107			191			(84	)
Selling price ($/tonne)		436			420			16
Cost of product sold ($/tonne)		(448	)		(379	)		(69	)
Margin ($/tonne)		(12	)		41			(53	)

• Volumes – Total phosphate volumes for the quarter were 44 percent lower than the same period last year due to lower production volumes.

• Price – The average realized selling price for phosphate was 4 percent higher than the same period last year, due to market strength in our primary selling region in Western Canada.

• Costs – Total cost of product sold was 32 percent lower than the comparable prior period, due to the lower sales volumes this quarter as a result of the extended maintenance shutdown. On a per-tonne basis, cost of product sold was 18 percent higher, due to higher input costs, including rock and sulfur, and fixed costs being spread over lower sales volumes.

Agrium Wholesale Other


	Three months ended December 31
(millions of U.S. dollars)	2017			2016			Change
Sales		130			123			7
Cost of product sold		(115	)		(103	)		(12	)
Gross profit		15			20			(5	)
EBIT		18			54			(36	)
EBITDA		20			57			(37	)

• Gross Profit – Total Wholesale Other gross profit was 25 percent lower in 2017’s fourth quarter compared to the same period last year, due to lower ammonium sulfate availability from our Redwater facility.


	Three months ended December 31
	2017			2016			Change
Sales tonnes (000’s)
Ammonium sulfate		61			99			(38	)
ESN^® and other		339			327			12
Selling price ($/tonne)
Ammonium sulfate		261			240			21
Cost of product sold ($/tonne)		(173	)		(130	)		(43	)
Margin ($/tonne)		88			110			(22	)

• Volumes – Fourth-quarter ESN^® volumes were 16 percent lower than the comparable period in 2016 due to lower product availability related to an outage at our Carseland nitrogen facility. Ammonium sulfate sales volumes were 38 percent lower due to reduced production volumes.

• Price – Stronger ESN^® market conditions had a favorable impact on selling prices, while ammonium sulfate also saw higher prices due to higher nitrogen benchmark prices and strong demand in Western Canada.

• Costs – Cost of product sold per tonne for ammonium sulfate was 33 percent higher during the quarter than the same period last year due to fixed costs being spread over lower sales volumes as a result of the above-noted outages and higher raw material prices.

Agrium Other

• EBITDA – EBITDA for our Other non-operating business unit for the fourth quarter of 2017 was a net expense of $122 million, compared to a net expense of $115 million for the fourth quarter of 2016. The variance was primarily due to:

•

An increase of $38 million in merger and related costs.

•

An increase of $13 million in our environmental remediation provision, primarily as a result of a change in our estimated future cash outflows for our Idaho phosphate mining and processing sites.

This was partially offset by:

•

A $15 million impairment loss recorded on an international investment in 2016.

•

An increase of $11 million in our gross profit recovery as a result of lower intersegment inventories held by Retail at the end of the fourth quarter.

• Tax – On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. Included in Agrium’s fourth-quarter earnings is a one-time, net tax expense of $9 million related to the Act. The effective tax rate for the fourth quarter of 2017 remained the same with prior year (2017 and 2016: 25 percent).

POTASHCORP RESULTS

PotashCorp reported a net loss of $76 million for the quarter, however, this included non-cash impairment charges in phosphate of $276 million and net tax recovery adjustments of $118 million. Adjusted earnings were $59 million for the quarter and $455 million for the year, supported by higher potash prices and lower costs.

POTASHCORP ADJUSTED NET EARNINGS RECONCILIATION


(millions of U.S. dollars, except per share amounts)	Three months ended December 31, 2017						Twelve months ended December 31, 2017
		Dollars			Per Share^(a)			Dollars			Per Share^(a)
Net (loss) income	$	(76	)	$	(0.09	)	$	327		$	0.39
Adjustments:
Share-based compensation		4			—			18			0.02
Income tax recovery on US tax changes		(187	)		(0.22	)		(187	)		(0.22	)
Income tax expense on Saskatchewan tax changes		68			0.08			—			—
Impairment of property, plant and equipment		213			0.25			236			0.28
Transaction costs		37			0.04			61			0.07
Adjusted earnings ⁸	$	59		$	0.06		$	455		$	0.54

(a)	Per share information attributable to equity holders of PotashCorp

PotashCorp Potash


	Three months ended December 31
(millions of U.S. dollars)	2017			2016			Change
Net sales	$	347		$	349			(2	)
Cost of goods sold		(189	)		(229	)		40
Gross margin		158			120			38

• Gross margin – Potash gross margin of $158 million for the fourth quarter and $785 million for the year exceeded the respective totals of $120 million and $437 million generated in 2016, primarily due to higher prices and reduced per-tonne costs.


	Three months ended December 31
	2017			2016			Change
Sales volumes (tonnes 000’s)
North America		568			720			(152	)
Offshore		1,340			1,489			(149	)
Average realized price ($/tonne)
North America		214			176			38
Offshore		169			148			21
Average		182			157			25
Cost of goods sold ($/tonne)		(96	)		(101	)		5
Gross margin ($/tonne)		86			56			30

• Volumes – Following record third-quarter shipments, sales volumes for the fourth quarter of 1.9 million tonnes were below the 2.2 million tonnes sold in the same period last year. In North America, shipments were 21 percent below 2016’s levels, while offshore shipments decreased by 10 percent. The majority of Canpotex’s

volumes for the quarter were sold to China (28 percent) and Other Asian markets outside of China and India (28 percent), while Latin America and India accounted for 25 percent and 11 percent, respectively.

• Price – Our average realized potash price of $182 per tonne surpassed the $157 per tonne realized in the same period last year, as strong customer engagement in all key markets continued to support prices.

• Costs – Inventory-related shutdowns reduced production volumes and resulted in manufactured cost of goods sold for the quarter of $96 per tonne. This amount was down from $101 per tonne in the same period last year, primarily due to an unfavorable adjustment to asset retirement obligations recorded in the fourth quarter of 2016.

PotashCorp Nitrogen


	Three months ended December 31
(millions of U.S. dollars)	2017			2016			Change
Net sales	$	316		$	289			27
Cost of goods sold		(257	)		(239	)		(18	)
Margin on inter-segment sales		11			5			6
Gross margin		70			55			15

• Gross margin – Nitrogen gross margin of $70 million for the quarter surpassed the $55 million generated in 2016’s fourth quarter as stronger prices more than offset higher per-tonne costs. Our U.S. and Trinidad operations each accounted for 50 percent of the quarter’s nitrogen gross margin. For the full-year, gross margin of $256 million was down from $361 million in 2016, predominantly due to lower prices and higher costs.


	Three months ended December 31
	2017			2016			Change
Sales volumes (tonnes 000’s)
Ammonia		505			477			28
Urea		283			304			(21	)
Solutions and Other		795			855			(60	)
Average realized price ($/tonne)
Ammonia		270			213			57
Urea		288			245			43
Solutions and Other		138			142			(4	)
Average		207			182			25
Cost of goods sold ($/tonne)		(167	)		(151	)		(16	)
Gross margin ($/tonne)		40			31			9

• Volumes – Total sales volumes of 1.6 million tonnes for the quarter were down 3 percent compared to the same period in 2016, primarily due to lower availability of product related to a turnaround at our Augusta facility.

• Price – Our average realized price of $207 per tonne during the quarter was up from $182 per tonne in the same period last year, primarily due to global pricing support from lower Chinese urea exports and ammonia production curtailments in key exporting regions.

• Costs – Cost of goods sold for the quarter averaged $167 per tonne, up from $151 per tonne in 2016’s fourth quarter primarily as a result of higher natural gas costs in Trinidad.

PotashCorp Phosphate


	Three months ended December 31
(millions of U.S. dollars)	2017			2016			Change
Net sales	$	302		$	290			12
Cost of goods sold		(597	)		(297	)		(300	)
Cost on inter-segment sales		(11	)		(5	)		(6	)
Gross margin		(306	)		(12	)		(294	)

• Gross margin – Negative phosphate gross margin of $306 million for the fourth quarter of 2017 was below the negative $12 million realized during the same period last year, primarily due to non-cash impairment charges of $276 million. For the full year, negative gross margin of $366 million – including non-cash impairment charges of $305 million – trailed the $32 million earned in 2016 when prices for nearly all our phosphate products were higher.


	Three months ended December 31
	2017			2016			Change
Sales volumes (tonnes 000’s)
Fertilizer		534			472			62
Feed and Industrial		239			243			(4	)
Average realized price ($/tonne)
Fertilizer		342			328			14
Feed and Industrial		483			551			(68	)
Average		385			404			(19	)
Cost of goods sold ($/tonne)		(782	)		(420	)		(362	)
Gross margin ($/tonne)		(397	)		(16	)		(381	)

• Volumes – Fourth-quarter sales volumes of 0.8 million tonnes surpassed last year’s comparable total of 0.7 million tonnes, mainly due to higher availability of our fertilizer products.

• Price – Our average realized phosphate price for the fourth quarter was $385 per tonne, down from $404 per tonne in the same period last year, as higher prices for fertilizer products were more than offset by lower realizations for our feed and industrial products.

• Costs – Cost of goods sold was $782 per tonne for the fourth quarter, significantly higher than $420 per tonne in 2016’s fourth quarter, predominantly due to impairment charges at our White Springs and feed plant facilities.

PotashCorp Finance

• Investments – Earnings from investments in Arab Potash Company (APC) in Jordan, Israel Chemicals Ltd. (ICL) in Israel and Sociedad Quimica y Minera de Chile S.A. (SQM) in Chile – now classified as discontinued operations⁹ – were $44 million for the fourth quarter, exceeding the $33 million generated in the same period last year. Our earnings for the year from these investments totaled $173 million and surpassed the $124 million realized in 2016. Classified as continuing operations are dividends from Sinofert Holdings Limited (Sinofert) in China and a $10 million non-cash impairment charge related to this investment in 2016. Subsequent to the fourth quarter of 2017, we completed the sale of our investment in ICL, which generated net proceeds of $685 million.

• Tax – Our income tax recovery of $153 million in the fourth quarter was larger than the $10 million recovery in 2016’s fourth quarter, primarily due to the discrete $187 million non-cash deferred tax recovery resulting

from a federal income tax rate decrease pursuant to U.S. tax reform legislation. This was partially offset by a non-cash discrete deferred tax expense of $68 million pertaining to a Saskatchewan income tax rate increase.

• Transaction Costs – During the quarter, we incurred merger-related costs of $51 million, higher than the $10 million sustained in the same period last year.

Notes

1. All amounts are stated in U.S. dollars.

2. All references to per-share amounts pertain to diluted net income per share.

3. EBITDA is calculated as net earnings (loss) from continuing operations before finance costs, income tax (recovery) expense, and depreciation and amortization. This is a non-IFRS measure. Refer to Selected Non-IFRS Financial Measures and Reconciliation.

4. EBIT is calculated as net earnings (loss) from continuing operations before finance costs and income tax (recovery) expense.

5. Certain amounts have been restated as a result of discontinued operations.

6. Canpotex Limited (“Canpotex”), the offshore marketing company for Nutrien and one other Saskatchewan potash producer.

7. This is a non-IFRS measure. Refer to Selected Non-IFRS Financial Measures and Reconciliation.

8. Generally, a non-IFRS financial measure is a numerical measure of a company’s performance, cash flows or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. Adjusted earnings is not a measure of financial performance (nor does it have a standardized meaning) under IFRS. In evaluating this measure, investors should consider that the methodology applied in calculating such a measure may differ among companies and analysts. The company uses both IFRS and this non-IFRS measure to assess operational performance. Management believes this non-IFRS measure provides useful supplemental information to investors in order that they may evaluate PotashCorp’s financial performance using the same measures as management. Management believes that, as a result, the investor is afforded greater transparency in assessing the financial performance of the company. This non-IFRS financial measure should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with IFRS. Adjusted earnings is calculated as net (loss) income before share-based compensation net of tax, certain non-cash income tax changes, certain impairment charges net of tax and Transaction costs net of tax. PotashCorp uses adjusted earnings to assess operational performance. Management believes adjusted earnings to be an important measure as it excludes the effects of non-operating items and share-based compensation, supporting a focus on the performance of the company’s day-to-day operations, excluding share-based compensation. As compared to net (loss) income from continuing operations according to IFRS, this measure is limited in that it does not reflect the periodic costs of charges associated with share-based compensation, income tax rate changes, impairments or Transaction costs. Management evaluates such items through other financial measures such as cash flow provided by operating activities. The company believes that this measurement is useful as a valuation measurement.

9. PotashCorp’s discontinued operations includes the following investments held for sale: Sociedad Quimica y Minera de Chile S.A. (“SQM”), Arab Potash Company (“APC”) and Israel Chemicals Ltd. (ICL)

About Nutrien

Nutrien is the world’s largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. We produce and distribute over 25 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders. For further information visit us at www.nutrien.com.

Forward-Looking Statements

Certain statements and other information included in this news release 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 news release, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to: Nutrien’s 2018 annual guidance, including expectations regarding our diluted earnings per share and EBITDA (both consolidated and Retail); expectations regarding net proceeds to be realized from the on-going sale of equity interests; capital spending expectations for 2018; expectations regarding performance of our business segments in 2018; our market outlook for 2018, including potash, nitrogen and phosphate outlook and including 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 currency fluctuations and import and export volumes; expectations regarding completion of previously announced expansion projects (including timing and volumes of production associated therewith) and acquisitions and divestitures; and the expected synergies associated with the merger of Agrium and PotashCorp, including timing thereof. 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.

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 Nutrien believes that these assumptions are reasonable, 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. The additional key assumptions that have been made include, among other things, assumptions with respect to Nutrien’s ability to successfully integrate and realize the anticipated benefits of its already completed (including the merger of Agrium and PotashCorp) and future acquisitions, and that we will be able to implement our standards, controls, procedures and policies at any acquired businesses to realize the expected synergies; that future business, regulatory and industry conditions will be within the parameters expected by Nutrien, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability and cost of labor and interest, exchange and effective tax rates; the completion of our expansion projects on schedule, as planned and on budget; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2018 and in the future (including as outlined under “Market Outlook”); 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; ability to maintain investment grade rating and achieve our performance targets; assumptions in respect of our ability to sell equity positions, including the ability to find suitable buyers at expected prices and successfully complete such transactions in a timely manner; the receipt, on time, of all necessary permits, utilities and project approvals with respect to our expansion projects and that we will have the resources necessary to meet the projects’ approach.

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; the failure to successfully integrate and realize the expected synergies associated with the merger of Agrium and PotashCorp, including within the expected timeframe; 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, 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 security risks related to our systems; the inability to find suitable buyers for our equity positions and counterparty and transaction risk associated therewith; regional natural gas supply restrictions; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; gas supply interruptions at our Egyptian and

Argentinian facilities; any significant impairment of the carrying value 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; and other risk factors detailed from time to time in Agrium, PotashCorp and Nutrien reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States, including those disclosed in Agrium’s annual information form for the year ended December 31, 2016 and its 2016 annual management’s discussion and analysis, as well as PotashCorp’s Form 10-K for the year ended December 31, 2016.

The purpose of our expected diluted earnings per share, consolidated EBITDA and Retail EBITDA guidance range is to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

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 U.S. federal securities laws or applicable Canadian securities legislation.

FOR FURTHER INFORMATION:

Investor and Media Relations:

Richard Downey

Vice President, Investor & Corporate Relations

(403) 225-7357

Investors@nutrien.com

Investor Relations:

Jeff Holzman

Senior Director, Investor Relations

(306) 933-8545

Todd Coakwell

Director, Investor Relations

(403) 225-7437

Nutrien will host a Conference Call on Tuesday, February 6, 2018 at 10:00 am Eastern Time.


Telephone Conference:		Dial-in numbers: • From Canada and the U.S. 1-877-269-7756 or 1-201-689-7817 • No access code required. Please dial in 15 minutes prior to ensure you get on the call.

Live Audio Webcast:		Visit www.nutrien.com/investors/events/2017-q4-earnings-conference-call

LOGO

Agrium Inc.

Condensed Consolidated Interim Financial Statements

For the three and twelve months ended

December 31, 2017

AGRIUM INC.

Condensed Consolidated Interim Statements of Operations

(Unaudited)


	Three months ended December 31,						Twelve months ended December 31,

(millions of U.S. dollars, unless otherwise stated)	2017			2016			2017			2016
				(restated)						(restated)

Sales		2,450			2,238			13,766			13,457
Cost of product sold		1,666			1,489			10,340			10,078

Gross profit		784			749			3,426			3,379
Expenses
Selling		519			480			2,014			1,913
General and administrative		71			64			247			240
Share-based payments		29			33			69			55
Earnings from associates and joint ventures		(7	)		(35	)		(39	)		(66	)
Other expenses		50			43			119			147

Earnings before finance costs and income taxes		122			164			1,016			1,090
Finance costs related to long-term debt		55			51			210			204
Other finance costs		30			21			101			74

Earnings before income taxes		37			92			705			812
Income taxes		10			23			203			228

Net earnings from continuing operations		27			69			502			584
Net (loss) earnings from discontinued operations		(9	)		(2	)		(187	)		12

Net earnings		18			67			315			596

Attributable to
Equity holders of Agrium		17			67			310			592
Non-controlling interests		1			—			5			4

Net earnings		18			67			315			596


Earnings per share attributable to equity holders of Agrium

Basic and diluted earnings per share from continuing operations		0.19			0.50			3.60			4.20
Basic and diluted (loss) earnings per share from discontinued operations		(0.06	)		(0.01	)		(1.36	)		0.09

Basic and diluted earnings per share		0.13			0.49			2.24			4.29

Weighted average number of shares outstanding for basic and diluted earnings per share (millions of common shares)		138			138			138			138

See accompanying notes.

Basis of preparation and statement of compliance

The accounting policies used in the preparation of these interim financial statements are those set out in Agrium’s audited consolidated financial statements as at and for the year ended December 31, 2016, which were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board, and were approved for issuance by the Agrium Inc. Audit Committee on February 5, 2018. These interim financial statements do not include all information and disclosures normally provided in annual or quarterly financial statements and should be read in conjunction with our audited annual financial statements and related notes, prepared in accordance with IFRS, contained in our 2016 Annual Report, available at www.nutrien.com.

AGRIUM INC.

Condensed Consolidated Interim Statements of Comprehensive Income

(Unaudited)


	Three months ended December 31,						Twelve months ended December 31,

(millions of U.S. dollars)	2017			2016			2017			2016

Net earnings		18			67			315			596
Other comprehensive (loss) income
Items that are or may be reclassified to earnings
Cash flow hedges
Effective portion of changes in fair value		(33	)		19			(92	)		7
Deferred income taxes		9			(5	)		25			(1	)
Associates and joint ventures
Share of comprehensive income (loss)		2			(36	)		(49	)		(34	)
Deferred income taxes		—			—			10			—
Foreign currency translation
(Losses) gains		(13	)		(94	)		183			59
Reclassifications to earnings		—			—			6			—

		(35	)		(116	)		83			31

Items that will never be reclassified to earnings
Post-employment benefits
Actuarial (losses) gains		(2	)		15			(5	)		(10	)
Deferred income taxes		1			(4	)		2			3

		(1	)		11			(3	)		(7	)

Other comprehensive (loss) income		(36	)		(105	)		80			24

Comprehensive (loss) income		(18	)		(38	)		395			620

Attributable to
Equity holders of Agrium		(19	)		(38	)		389			616
Non-controlling interests		1			—			6			4

Comprehensive (loss) income		(18	)		(38	)		395			620

See accompanying notes.

AGRIUM INC.

Condensed Consolidated Interim Balance Sheets

(Unaudited)


	December 31,
(millions of U.S. dollars)	2017			2016

Assets
Current assets
Cash and cash equivalents		466			412
Accounts receivable		2,406			2,208
Income taxes receivable		18			33
Inventories		3,321			3,230
Prepaid expenses and deposits		1,004			855
Other current assets		120			123
Assets held for sale		105			—
		7,440			6,861
Property, plant and equipment		7,091			6,818
Intangibles		518			566
Goodwill		2,228			2,095
Investments in associates and joint ventures		522			541
Other assets		58			48
Deferred income tax assets		85			34
		17,942			16,963

Liabilities and shareholders’ equity
Current liabilities
Short-term debt		867			604
Accounts payable		5,206			4,662
Income taxes payable		27			17
Current portion of long-term debt		11			110
Current portion of other provisions		63			59
		6,174			5,452
Long-term debt		4,397			4,398
Post-employment benefits		142			141
Other provisions		522			322
Other liabilities		106			68
Deferred income tax liabilities		473			408
		11,814			10,789
Shareholders’ equity
Share capital		1,776			1,766
Retained earnings		5,461			5,634
Accumulated other comprehensive loss		(1,116	)		(1,231	)
Equity holders of Agrium		6,121			6,169
Non-controlling interests		7			5
Total equity		6,128			6,174
		17,942			16,963

See accompanying notes.

AGRIUM INC.

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited)


		Three months ended December 31,						Twelve months ended December 31,
(millions of U.S. dollars)	2017			2016 (restated)			2017			2016 (restated)
Operating
Net earnings from continuing operations		27			69			502			584
Adjustments for
Depreciation and amortization		138			131			530			493
Earnings from associates and joint ventures		(7	)		(35	)		(39	)		(66	)
Share-based payments		29			33			69			55
Unrealized loss on derivative financial instruments		2			—			1			36
Unrealized foreign exchange loss (gain)		—			1			31			(19	)
Interest income		(16	)		(17	)		(59	)		(66	)
Finance costs		85			72			311			278
Income taxes		10			23			203			228
Other		30			26			34			23
Interest received		16			16			61			66
Interest paid		(68	)		(49	)		(308	)		(272	)
Income taxes paid		(7	)		(14	)		(20	)		(291	)
Dividends from associates and joint ventures		7			68			18			116
Net changes in non-cash working capital		1,338			1,101			(15	)		472
Cash provided by operating activities		1,584			1,425			1,319			1,637
Investing
Business acquisitions, net of cash acquired		(19	)		(26	)		(203	)		(342	)
Capital expenditures		(219	)		(170	)		(677	)		(701	)
Capitalized borrowing costs		—			(6	)		(12	)		(24	)
Purchase of investments		(4	)		(16	)		(63	)		(77	)
Proceeds from sale of investments		5			19			69			97
Proceeds from sale of property, plant and equipment		6			2			34			16
Other		(8	)		51			(19	)		33
Net changes in non-cash working capital		—			10			(51	)		5
Cash used in investing activities		(239	)		(136	)		(922	)		(993	)
Financing
Short-term debt		(1,011	)		(1,092	)		258			(188	)
Repayment of long-term debt		(2	)		(1	)		(110	)		(17	)
Dividends paid		(121	)		(120	)		(483	)		(482	)
Cash used in financing activities		(1,134	)		(1,213	)		(335	)		(687	)
Effect of exchange rate changes on cash and cash equivalents		(5	)		(9	)		(12	)		(67	)
Increase (decrease) in cash and cash equivalents from continuing operations		206			67			50			(110	)
Cash and cash equivalents provided by discontinued operations		14			34			4			7
Cash and cash equivalents – beginning of period		246			311			412			515
Cash and cash equivalents – end of period		466			412			466			412

See accompanying notes.

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		—		—		592			—			—			—			—			592			4			596
Other comprehensive income (loss), net of tax
Post-employment benefits		—		—		(7	)		—			—			—			—			(7	)		—			(7	)
Other		—		—		—			6			(34	)		59			31			31			—			31
Comprehensive income (loss), net of tax		—		—		585			6			(34	)		59			31			616			4			620
Dividends ($3.5 per share)		—		—		(484	)		—			—			—			—			(484	)		—			(484	)
Non-controlling interest transactions		—		—		—			—			—			—			—			—			(3	)		(3	)
Share-based payment transactions		—		9		—			—			—			—			—			9			—			9
Reclassification of cash flow hedges, net of tax		—		—		—			25			—			—			25			25			—			25
December 31, 2016		138		1,766		5,634			(25	)		(51	)		(1,155	)		(1,231	)		6,169			5			6,174
Net earnings		—		—		310			—			—			—			—			310			5			315
Other comprehensive income (loss), net of tax
Post-employment benefits		—		—		(3	)		—			—			—			—			(3	)		—			(3	)
Other		—		—		—			(67	)		(39	)		188			82			82			1			83
Comprehensive income (loss), net of tax		—		—		307			(67	)		(39	)		188			82			389			6			395
Dividends ($3.5 per share)		—		—		(483	)		—			—			—			—			(483	)		—			(483	)
Non-controlling interest transactions		—		—		3			—			—			(2	)		(2	)		1			(4	)		(3	)
Share-based payment transactions		—		10		—			—			—			—			—			10			—			10
Reclassification of cash flow hedges, net of tax		—		—		—			35			—			—			35			35			—			35
December 31, 2017		138		1,776		5,461			(57	)		(90	)		(969	)		(1,116	)		6,121			7			6,128

See accompanying notes.

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 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. 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.

Agrium completed a merger with Potash Corporation of Saskatchewan Inc., on January 1, 2018 (“the Merger”). After that date, shares of Agrium no longer trade publicly. The merged companies began trading on the Toronto Stock Exchange and New York Stock Exchange as Nutrien Ltd. (“Nutrien”), under the symbol NTR on January 2, 2018. Further information about the Merger is available in Nutrien’s press release of January 2, 2018, and other documents at www.sedar.com.

In these financial statements, “we”, “us”, “our” and “Agrium” mean Agrium Inc., its subsidiaries and its 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 and prior to the Conda Phosphate operations disposition as described below, mining facilities in Idaho

Wholesale Other: Producing blended crop nutrients and Environmentally 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

On January 12, 2018, we completed the agreements with third parties to dispose of our Conda phosphate operations (“CPO”) and North Bend nitrogen assets (“North Bend”). The sale of CPO and North Bend are the subject of a consent order proposed to the United States Federal Trade Commission (FTC) as remedies to resolve issues in superphosphoric acid and nitric acid related to the Merger. On December 27, 2017, the FTC published related documents, including a proposed consent order, which were open for public comment until January 29, 2018, after which the FTC will decide whether to make the proposed consent order final.

These assets were previously classified as held for sale, as FTC approval and completion of the sales of CPO and North Bend assets is considered highly probable. Additionally, as CPO comprises operations and cash flows that can be clearly distinguished operationally and for financial reporting purposes, its operating results and the impact of re-measurement to the selling price are included in discontinued operations for the quarter and year ended December 31, 2017, and in the comparative quarter and year ended December 31, 2016. Discontinued operations exclude elimination of intercompany transactions.

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 2017

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

(Unaudited)

2. Operating Segments


Segment information by business unit		Three months ended December 31,
		2017												2016
		Retail			Wholesale			Other ^(a)			Total			Retail			Wholesale			Other ^(a)			Total
Sales	- external		2,076			374			—			2,450			1,816			422			—			2,238
	- inter-segment		13			160			(173	)		—			12			172			(184	)		—
Total sales			2,089			534			(173	)		2,450			1,828			594			(184	)		2,238
Cost of product sold			1,394			447			(175	)		1,666			1,205			459			(175	)		1,489
Gross profit			695			87			2			784			623			135			(9	)		749
Gross profit (%)			33			16						32			34			23						33

Expenses
Selling			517			6			(4	)		519			476			9			(5	)		480
General and administrative			26			8			37			71			26			6			32			64
Share-based payments			—			—			29			29			—			—			33			33
Earnings from associates and joint ventures			(1	)		(5	)		(1	)		(7	)		(1	)		(34	)		—			(35	)
Other (income) expenses			(21	)		2			69			50			(12	)		3			52			43
Earnings (loss) before finance costs and income taxes			174			76			(128	)		122			134			151			(121	)		164
Finance costs			—			—			85			85			—			—			72			72
Earnings (loss) before income taxes			174			76			(213	)		37			134			151			(193	)		92
Depreciation and amortization			74			58			6			138			68			57			6			131
Finance costs			—			—			85			85			—			—			72			72
EBITDA ^(b)			248			134			(122	)		260			202			208			(115	)		295

(a)	Includes inter-segment eliminations

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

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 2017

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

(Unaudited)


Segment information by business unit		Twelve months ended December 31,
		2017												2016
		Retail			Wholesale			Other ^(a)			Total			Retail			Wholesale			Other ^(a)			Total
Sales	- external		12,056			1,710			—			13,766			11,723			1,734			—			13,457
	- inter-segment		47			649			(696	)		—			43			694			(737	)		—
Total sales			12,103			2,359			(696	)		13,766			11,766			2,428			(737	)		13,457
Cost of product sold			9,157			1,888			(705	)		10,340			8,980			1,872			(774	)		10,078
Gross profit			2,946			471			9			3,426			2,786			556			37			3,379
Gross profit (%)			24			20						25			24			23						25

Expenses
Selling			2,007			24			(17	)		2,014			1,899			31			(17	)		1,913
General and administrative			100			26			121			247			102			28			110			240
Share-based payments			—			—			69			69			—			—			55			55
(Earnings) loss from associates and joint ventures			(9	)		(30	)		—			(39	)		(6	)		(61	)		1			(66	)
Other (income) expenses			(42	)		34			127			119			(26	)		57			116			147
Earnings (loss) before finance costs and income taxes			890			417			(291	)		1,016			817			501			(228	)		1,090
Finance costs			—			—			311			311			—			—			278			278
Earnings (loss) before income taxes			890			417			(602	)		705			817			501			(506	)		812
Depreciation and amortization			289			222			19			530			274			203			16			493
Finance costs			—			—			311			311			—			—			278			278
EBITDA			1,179			639			(272	)		1,546			1,091			704			(212	)		1,583

(a)	Includes inter-segment eliminations

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 2017

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

(Unaudited)


Segment information – Retail		Three months ended December 31,

		2017									2016

		North America			International			Retail			North America			International			Retail

Sales	- external		1,510			566			2,076			1,332			484			1,816
	- inter-segment		13			—			13			12			—			12

Total sales			1,523			566			2,089			1,344			484			1,828
Cost of product sold			990			404			1,394			860			345			1,205

Gross profit			533			162			695			484			139			623
Expenses
Selling			419			98			517			376			100			476
General and administrative			18			8			26			18			8			26
Earnings from associates and joint ventures			—			(1	)		(1	)		—			(1	)		(1	)
Other income			(16	)		(5	)		(21	)		(5	)		(7	)		(12	)

Earnings before income taxes			112			62			174			95			39			134
Depreciation and amortization			70			4			74			60			8			68

EBITDA			182			66			248			155			47			202

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 2017

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

(Unaudited)


Segment information – Retail		Twelve months ended December 31,

		2017									2016

		North America			International			Retail			North America			International			Retail

Sales	- external		9,874			2,182			12,056			9,565			2,158			11,723
	- inter-segment		47			—			47			43			—			43

Total sales			9,921			2,182			12,103			9,608			2,158			11,766
Cost of product sold			7,513			1,644			9,157			7,306			1,674			8,980

Gross profit			2,408			538			2,946			2,302			484			2,786
Expenses
Selling			1,652			355			2,007			1,555			344			1,899
General and administrative			71			29			100			72			30			102
Earnings from associates and joint ventures			(7	)		(2	)		(9	)		(4	)		(2	)		(6	)
Other (income) expenses			(24	)		(18	)		(42	)		3			(29	)		(26	)

Earnings before income taxes			716			174			890			676			141			817
Depreciation and amortization			273			16			289			249			25			274

EBITDA			989			190			1,179			925			166			1,091

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 2017

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

(Unaudited)


Segment information – Wholesale		Three months ended December 31,

		2017													2016

		Nitrogen		Potash		Phosphate			Wholesale Other ^(a)			Wholesale			Nitrogen		Potash		Phosphate		Wholesale Other ^(a)			Wholesale

Sales	- external		156		101		19			98			374			218		74		40		90			422
	- inter-segment		64		36		28			32			160			67		31		41		33			172

Total sales			220		137		47			130			534			285		105		81		123			594
Cost of product sold			186		97		49			115			447			200		84		72		103			459

Gross profit			34		40		(2	)		15			87			85		21		9		20			135
Expenses
Selling			3		1		1			1			6			4		2		1		2			9
General and administrative			5		3		(1	)		1			8			4		2		—		—			6
Earnings from associates and joint ventures			—		—		—			(5	)		(5	)		—		—		—		(34	)		(34	)
Other expenses (income)			—		3		(1	)		—			2			1		4		—		(2	)		3

Earnings (loss) before income taxes			26		33		(1	)		18			76			76		13		8		54			151
Depreciation and amortization			20		31		5			2			58			23		26		5		3			57

EBITDA			46		64		4			20			134			99		39		13		57			208

(a)	Includes ammonium sulfate, ESN and other products

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 2017

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

(Unaudited)


Segment information – Wholesale		Twelve months ended December 31,

		2017												2016

		Nitrogen		Potash		Phosphate		Wholesale Other ^(a)			Wholesale			Nitrogen		Potash		Phosphate		Wholesale Other ^(a)			Wholesale

Sales	- external		755		386		115		454			1,710			860		280		148		446			1,734
	- inter-segment		254		133		122		140			649			284		139		141		130			694

Total sales			1,009		519		237		594			2,359			1,144		419		289		576			2,428
Cost of product sold			757		390		228		513			1,888			757		367		261		487			1,872

Gross profit			252		129		9		81			471			387		52		28		89			556
Expenses
Selling			12		5		2		5			24			14		7		2		8			31
General and administrative			13		6		—		7			26			13		7		1		7			28
Earnings from associates and joint ventures			—		—		—		(30	)		(30	)		—		—		—		(61	)		(61	)
Other expenses (income)			18		13		3		—			34			31		28		2		(4	)		57

Earnings before income taxes			209		105		4		99			417			329		10		23		139			501
Depreciation and amortization			79		113		17		13			222			75		99		16		13			203

EBITDA			288		218		21		112			639			404		109		39		152			704

(a)	Includes ammonium sulfate, ESN and other products

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 2017

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

(Unaudited)


Gross profit by product line	Three months ended December 31,																		Twelve months ended December 31,
	2017												2016						2017											2016
	Sales			Cost of product sold			Gross profit			Sales			Cost of product sold			Gross profit			Sales			Cost of product sold			Gross profit		Sales			Cost of product sold			Gross profit
Retail
Crop nutrients		890			722			168			779			632			147			4,121			3,273			848		4,310			3,478			832
Crop protection products		712			385			327			620			324			296			4,937			3,752			1,185		4,684			3,570			1,114
Seed		107			56			51			101			58			43			1,628			1,303			325		1,462			1,165			297
Merchandise		187			159			28			167			140			27			683			577			106		621			518			103
Services and other ^(a)		193			72			121			161			51			110			734			252			482		689			249			440
		2,089			1,394			695			1,828			1,205			623			12,103			9,157			2,946		11,766			8,980			2,786
Wholesale
Nitrogen		220			186			34			285			200			85			1,009			757			252		1,144			757			387
Potash		137			97			40			105			84			21			519			390			129		419			367			52
Phosphate		47			49			(2	)		81			72			9			237			228			9		289			261			28
Ammonium sulfate, ESN and other		130			115			15			123			103			20			594			513			81		576			487			89
		534			447			87			594			459			135			2,359			1,888			471		2,428			1,872			556
Other inter-segment eliminations		(173	)		(175	)		2			(184	)		(175	)		(9	)		(696	)		(705	)		9		(737	)		(774	)		37
Total		2,450			1,666			784			2,238			1,489			749			13,766			10,340			3,426		13,457			10,078			3,379


Wholesale share of joint ventures
Nitrogen		68			47			21			65			53			12			216			167			49		196			164			32
Total Wholesale including proportionate share in joint ventures		602			494			108			659			512			147			2,575			2,055			520		2,624			2,036			588

(a)	Includes financial services products

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 2017

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

(Unaudited)


Selected volumes and per tonne information	Three months ended December 31,
	2017													2016
	Sales tonnes (000’s)		Selling price ($/tonne)		Cost of product sold ($/tonne)		Margin ($/tonne)			Sales tonnes (000’s)		Selling price ($/tonne)		Cost of product sold ($/tonne)		Margin ($/tonne)
Retail
Crop nutrients
North America		1,791		404		328		76			1,593		395		317		78
International		429		386		311		75			395		381		321		60
Total crop nutrients		2,220		401		325		76			1,988		392		318		74

Wholesale
Nitrogen
North America
Ammonia		261		342							334		371
Urea		300		287							439		274
Other		191		234							181		222
Total nitrogen		752		293		248		45			954		298		209		89

Potash
North America		329		269							286		211
International		291		168							304		148
Total potash		620		221		157		64			590		179		143		36

Phosphate		107		436		448		(12	)		191		420		379		41
Ammonium sulfate		61		261		173		88			99		240		130		110
ESN and other		339									327
Total Wholesale		1,879		284		238		46			2,161		275		213		62


Wholesale share of joint ventures
Nitrogen		200		339		234		105			222		293		235		58
Total Wholesale including proportionate share in joint ventures		2,079		289		237		52			2,383		276		215		61

AGRIUM INC.

Summarized Notes to the Condensed Consolidated Interim Financial Statements

For the three and twelve months ended December 31, 2017

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

(Unaudited)


Selected volumes and per tonne information	Twelve months ended December 31,
	2017												2016
	Sales tonnes (000’s)		Selling price ($/tonne)		Cost of product sold ($/tonne)		Margin ($/tonne)		Sales tonnes (000’s)		Selling price ($/tonne)		Cost of product sold ($/tonne)		Margin ($/tonne)
Retail
Crop nutrients
North America		8,373		414		323		91		8,003		446		351		95
International		1,829		356		311		45		1,956		379		341		38
Total crop nutrients		10,202		404		321		83		9,959		433		349		84

Wholesale
Nitrogen
North America
Ammonia		1,035		378						1,165		402
Urea		1,475		283						1,620		294
Other		863		231						817		244
Total nitrogen		3,373		299		224		75		3,602		318		211		107

Potash
North America		1,335		256						1,187		217
International		1,097		162						1,052		154
Total potash		2,432		213		160		53		2,239		187		164		23

Phosphate		551		429		414		15		640		450		408		42
Ammonium sulfate		345		267		132		135		341		268		122		146
ESN and other		1,516								1,439
Total Wholesale		8,217		287		230		57		8,261		294		227		67


Wholesale share of joint ventures
Nitrogen		713		303		234		69		669		293		245		48
Total Wholesale including proportionate share in joint ventures		8,930		288		230		58		8,930		294		228		66

AGRIUM INC. SELECTED NON-IFRS FINANCIAL MEASURES AND RECONCILIATIONS

Certain financial measures in our Press Release are not prescribed by IFRS. We consider these financial measures discussed herein to provide useful information to both management and investors in measuring our financial performance and financial condition.

IFRS requires that we provide and include subtotals and other financial measures in our Consolidated Financial Statements. Such measures become IFRS measures by virtue of being included in the Consolidated Financial Statements. Other measures that are not specifically defined under IFRS and may not be comparable to similar measures used by other issuers are non-IFRS measures. These non-IFRS measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

The following table outlines our non-IFRS financial measures, their definitions and why management uses each measure.


Non-IFRS financial measure	Definition	Why we use the measure and why it is useful to investors
EBITDA	Net earnings (loss) before finance costs, income taxes, depreciation and amortization, and net earnings (loss) from discontinued operations	EBITDA is frequently used by investors and analysts for valuation purposes when multiplied by a factor to estimate the enterprise value of a company. EBITDA is also used in determining annual incentive compensation for certain management employees and in calculating certain of our debt covenants.
Adjusted and guidance EPS	Net earnings (loss) adjusted for certain income (expenses) that are considered to be non-operational in nature.	These measures provide meaningful comparison to our guidance by eliminating share-based payments expense (recovery), gains (losses) on foreign exchange and related gains (losses) on non-qualifying derivative hedges and significant non-operating, non-recurring items. Our guidance is forward-looking information. We present guidance relevant earnings (loss) per share to provide an update to this previously disclosed forward-looking information.
Cash cost of production manufactured (COPM)	All fixed and variable costs are accumulated in cash COPM excluding depreciation and amortization expense and direct freight.	Enables investors to better understand the performance of our manufactured operations compared to other crop nutrient producers.
	When cash COPM costs are divided by the production tonnes for the period, the result is actual cash COPM per tonne, which is compared to the standard cash COPM per tonne – a calculation of fixed and variable costs for a standard or typical period of production. The standard cash COPM per tonne is multiplied by the production tonnes for the period, and the resulting dollar amount is transferred to inventory. Any remaining costs are recorded directly to cost of product sold as production volume or cost efficiency variances. Direct freight is a transportation cost to move the product from an Agrium location to the point of sale. There is no directly comparable IFRS measure for cash COPM.


Consolidated and business unit EBITDA	Three months ended December 31,
(millions of U.S. dollars)	Retail		Wholesale		Other			Consolidated
2017
Net earnings									18
Finance costs related to long-term debt									55
Other finance costs									30
Income taxes									10
Net loss from discontinued operations									9
EBIT		174		76		(128	)		122
Depreciation and amortization		74		58		6			138
EBITDA		248		134		(122	)		260

2016
Net earnings									67
Finance costs related to long-term debt									51
Other finance costs									21
Income taxes									23
Net loss from discontinued operations									2
EBIT		134		151		(121	)		164
Depreciation and amortization		68		57		6			131
EBITDA		202		208		(115	)		295

Potash Corporation of Saskatchewan Inc.

Condensed Consolidated Statements of (Loss) Income

(in millions of US dollars except as otherwise noted)

(unaudited)


	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2017			2016⁽¹⁾			2017			2016⁽¹⁾
Sales (Note 2)		$ 1,081			$ 1,058			$ 4,547			$ 4,456
Freight, transportation and distribution		(116	)		(130	)		(537	)		(535	)
Cost of goods sold (Note 2)		(1,043	)		(765	)		(3,335	)		(3,091	)
Gross Margin		(78	)		163			675			830
Selling and administrative expenses		(60	)		(45	)		(214	)		(212	)
Provincial mining and other taxes		(26	)		(36	)		(151	)		(124	)
Transaction costs (Note 3)		(51	)		(10	)		(84	)		(18	)
Other expenses (Note 4)		—			(14	)		(17	)		(17	)
Operating (Loss) Income		(215	)		58			209			459
Finance costs		(58	)		(55	)		(238	)		(216	)
(Loss) Income Before Income Taxes		(273	)		3			(29	)		243
Income tax recovery (expense) (Note 5)		153			10			183			(44	)
Net (Loss) Income from Continuing Operations		(120	)		13			154			199
Net Income from Discontinued Operations (Note 6)		44			33			173			124
Net (Loss) Income		$ (76	)		$ 46			$ 327			$ 323


Net (Loss) Income per Share from Continuing Operations
Basic		$ (0.14	)		$ 0.02			$ 0.18			$ 0.24
Diluted		$ (0.14	)		$ 0.02			$ 0.18			$ 0.24


Net (Loss) Income per Share from Continuing and Discontinued Operations
Basic		$ (0.09	)		$ 0.05			$ 0.39			$ 0.39
Diluted		$ (0.09	)		$ 0.05			$ 0.39			$ 0.38


Dividends Declared per Share		$ 0.10			$ 0.10			$ 0.40			$ 0.70


Weighted Average Shares Outstanding
Basic		840,203,000			839,721,000			840,079,000			838,928,000
Diluted		840,606,000			840,142,000			840,316,000			839,459,000

⁽¹⁾	Certain amounts have been reclassified as a result of discontinued operations described in Note 6.

(See Notes to the Condensed Consolidated Financial Statements)

Potash Corporation of Saskatchewan Inc.

Condensed Consolidated Statements of Comprehensive (Loss) Income

(in millions of US dollars)

(unaudited)


	Three Months Ended					Twelve Months Ended
	December 31					December 31
(Net of related income taxes)	2017			2016		2017			2016

Net (Loss) Income	$	(76	)	$	46	$	327		$	323
Other comprehensive (loss) income
Items that will not be reclassified to net income:
Net actuarial gain on defined benefit plans ⁽¹⁾		46			119		46			16
Items that have been or may be subsequently reclassified to net income:
Available-for-sale investments ⁽²⁾
Net fair value (loss) gain during the period		(98	)		54		30			(34	)
Cash flow hedges
Net fair value (loss) gain during the period ⁽³⁾		(9	)		9		(17	)		7
Reclassification to income of net loss ⁽⁴⁾		6			11		34			50
Other		1			—		3			2
Other Comprehensive (Loss) Income		(54	)		193		96			41
Comprehensive (Loss) Income	$	(130	)	$	239	$	423		$	364

⁽¹⁾	Net of income taxes of $(20) (2016 - $(76)) for the three months ended December 31, 2017, and $(20) (2016 – $(16)) for the twelve months ended December 31, 2017.

⁽²⁾

Available-for-sale investments are comprised of shares in Israel Chemicals Ltd. ("ICL"), Sinofert Holdings Limited ("Sinofert") and other. The company’s investment in ICL was classified as held for sale at December 31, 2017 and the divestiture of all equity interests in ICL was completed on January 24, 2018.

⁽³⁾

Cash flow hedges are comprised of natural gas derivative instruments and were net of income taxes of $(7) (2016 - $(4)) for the three months ended December 31, 2017 and $(3) (2016 - $(4)) for the twelve months ended December, 31 2017. In the fourth quarter of 2017, related deferred income tax assets were reduced by $8 due to a US federal income tax rate decrease.

⁽⁴⁾	Net of income taxes of $(5) (2016 - $(6)) for the three months ended December 31, 2017, and $(20) (2016 - $(28)) for the twelve months ended December 31, 2017.

(See Notes to the Condensed Consolidated Financial Statements)

Potash Corporation of Saskatchewan Inc.

Condensed Consolidated Statements of Cash Flow

(in millions of US dollars)

(unaudited)


	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2017			2016			2017			2016

Operating Activities
Net (loss) income	$	(76	)	$	46		$	327		$	323
Adjustments to reconcile net income to cash provided by operating activities (Note 7)		294			246			826			877
Changes in non-cash operating working capital (Note 7)		163			61			72			60
Cash provided by operating activities		381			353			1,225			1,260

Investing Activities
Additions to property, plant and equipment		(220	)		(245	)		(651	)		(893	)
Other assets and intangible assets		—			8			(1	)		(2	)
Cash used in investing activities		(220	)		(237	)		(652	)		(895	)

Financing Activities
Proceeds from long-term debt obligations		—			496			—			496
Repayment of, and finance costs on, long-term debt obligations		(500	)		(4	)		(501	)		(8	)
Proceeds from (repayment of) short-term debt obligations		440			(647	)		341			(128	)
Dividends		(82	)		(82	)		(330	)		(809	)
Issuance of common shares		—			—			1			25
Cash used in financing activities		(142	)		(237	)		(489	)		(424	)
Increase (Decrease) in Cash and Cash Equivalents		19			(121	)		84			(59	)
Cash and Cash Equivalents, Beginning of Period		97			153			32			91
Cash and Cash Equivalents, End of Period	$	116		$	32		$	116		$	32


Cash and cash equivalents comprised of:
Cash	$	14		$	13		$	14		$	13
Short-term investments		102			19			102			19
	$	116		$	32		$	116		$	32

(See Notes to the Condensed Consolidated Financial Statements)

Potash Corporation of Saskatchewan Inc.

Condensed Consolidated Statement of Changes in Shareholders' Equity

(in millions of US dollars)

(unaudited)


					Accumulated Other Comprehensive (Loss) Income
	Share Capital		Contributed Surplus		Net unrealized gain on available- for-sale investments ⁽¹⁾		Net (loss) gain on derivatives designated as cash flow hedges			Net actuarial gain on defined benefit plans ⁽²⁾			Other			Total Accumulated Other Comprehensive (Loss) Income			Retained Earnings			Total Equity

Balance – December 31, 2016	$	1,798	$	222	$	43	$	(60	)	$	—		$	(8	)	$	(25	)	$	6,204		$	8,199
Net income		—		—		—		—			—			—			—			327			327
Other comprehensive income		—		—		30		17			46			3			96			—			96
Dividends declared		—		—		—		—			—			—			—			(335	)		(335	)
Effect of share-based compensation including issuance of common shares		2		8		—		—			—			—			—			—			10
Shares issued for dividend reinvestment plan		6		—		—		—			—			—			—			—			6
Transfer of net actuarial gain on defined benefit plans		—		—		—		—			(46	)		—			(46	)		46			—
Balance – December 31, 2017	$	1,806	$	230	$	73	$	(43	)	$	—		$	(5	)	$	25		$	6,242		$	8,303

⁽¹⁾	The cumulative net unrealized gain on the available-for-sale investment in ICL, classified as held for sale as described in Note 6, was $4 at December 31, 2017.

⁽²⁾	Any amounts incurred during a period are closed out to retained earnings at each period-end. Therefore, no balance exists at the beginning or end of period.

(See Notes to the Condensed Consolidated Financial Statements)

Potash Corporation of Saskatchewan Inc.

Condensed Consolidated Statements of Financial Position

(in millions of US dollars except share amounts)

(unaudited)


As at	December 31 2017		December 31 2016

Assets
Current assets
Cash and cash equivalents	$	116	$	32
Receivables		489		545
Inventories		788		768
Prepaid expenses and other current assets		72		49
		1,465		1,394
Assets held for sale (Note 6)		1,858		—
		3,323		1,394
Non-current assets
Property, plant and equipment		12,971		13,318
Investments in equity-accounted investees (Note 6)		30		1,173
Available-for-sale investments (Note 6)		262		940
Other assets		246		250
Intangible assets		166		180
Total Assets	$	16,998	$	17,255


Liabilities
Current liabilities
Short-term debt and current portion of long-term debt	$	730	$	884
Payables and accrued charges		807		772
Current portion of derivative instrument liabilities		29		41
		1,566		1,697
Deferred income tax liabilities on assets held for sale (Note 6)		36		—
		1,602		1,697
Non-current liabilities
Long-term debt		3,711		3,707
Derivative instrument liabilities		35		56
Deferred income tax liabilities		2,205		2,463
Pension and other post-retirement benefit liabilities		440		443
Asset retirement obligations and accrued environmental costs		651		643
Other non-current liabilities and deferred credits		51		47
Total Liabilities		8,695		9,056

Shareholders' Equity
Share capital		1,806		1,798
Unlimited authorization of common shares without par value; issued and outstanding 840,223,041 and 839,790,379 at December 31, 2017 and December 31, 2016, respectively
Contributed surplus		230		222
Accumulated other comprehensive income (loss)		25		(25	)
Retained earnings		6,242		6,204
Total Shareholders' Equity		8,303		8,199
Total Liabilities and Shareholders' Equity	$	16,998	$	17,255

(See Notes to the Condensed Consolidated Financial Statements)

Potash Corporation of Saskatchewan Inc.

Notes to the Condensed Consolidated Financial Statements

For the Three and Twelve Months Ended December 31, 2017

(in millions of US dollars except as otherwise noted)

(unaudited)

1. Significant Accounting Policies

With its subsidiaries, Potash Corporation of Saskatchewan Inc. (“PCS”) — together known as “PotashCorp” or “the company” except to the extent the context otherwise requires — forms a crop nutrient and related industrial and feed products company. The company’s accounting policies are in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). The accounting policies and methods of computation used in preparing these unaudited interim condensed consolidated financial statements are consistent with those used in the preparation of the company's 2016 annual consolidated financial statements, with the exception of investments held for sale and discontinued operations included in Note 6 of these unaudited condensed consolidated financial statements, which were not previously disclosed.

These unaudited condensed consolidated financial statements include the accounts of PCS and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with the company's 2016 annual consolidated financial statements. The company's 2017 annual consolidated financial statements will include additional information under IFRS in its Annual Report in February 2018.

In management's opinion, the unaudited condensed consolidated financial statements include all adjustments necessary to present fairly such information.

2. Segment Information

The company has three reportable operating segments: potash, nitrogen and phosphate. The accounting policies of the segments are the same as those described in Note 1. Inter-segment sales are made under terms that approximate market value.


	Three Months Ended December 31, 2017
	Potash			Nitrogen			Phosphate			All Others			Consolidated

Sales - third party	$	383		$	348		$	350		$	—		$	1,081
Freight, transportation and distribution - third party		(36	)		(32	)		(48	)		—			(116	)
Net sales - third party		347			316			302			—
Cost of goods sold - third party		(189	)		(257	)		(597	)		—			(1,043	)
Margin (cost) on inter-segment sales ⁽¹⁾		—			11			(11	)		—			—
Gross margin		158			70			(306	)		—			(78	)
Items included in cost of goods sold, selling and administrative or other expenses:
Depreciation and amortization		(49	)		(59	)		(54	)		(10	)		(172	)
Impairment of property, plant and equipment ⁽²⁾		—			—			(276	)		—			(276	)
Cash outflows for additions to property, plant and equipment		82			96			40			2			220

(1)	Inter-segment net sales were $20.

(2)

During the fourth quarter of 2017, the company recognized an impairment loss of $250 associated with its White Springs and Feed Plants cash generating unit ("CGU"). At December 31, 2017, the recoverable amount of this CGU was $96 based on value in use. Remaining impairment losses relate to phosphate property, plant and equipment at Aurora as a result of a mining method the company will no longer use. Recoverable amount was based on fair value less costs to sell.

Potash Corporation of Saskatchewan Inc.

Notes to the Condensed Consolidated Financial Statements

For the Three and Twelve Months Ended December 31, 2017

(in millions of US dollars except as otherwise noted)

(unaudited)

2. Segment Information (continued)


	Three Months Ended December 31, 2016

	Potash			Nitrogen			Phosphate			All Others			Consolidated
Sales - third party	$	403		$	323		$	332		$	—		$	1,058
Freight, transportation and distribution - third party		(54	)		(34	)		(42	)		—			(130	)
Net sales - third party		349			289			290			—
Cost of goods sold - third party		(229	)		(239	)		(297	)		—			(765	)
Margin (cost) on inter-segment sales ⁽¹⁾		—			5			(5	)		—			—
Gross margin		120			55			(12	)		—			163
Items included in cost of goods sold, selling and administrative or other expenses:
Depreciation and amortization		(57	)		(54	)		(58	)		(8	)		(177	)
Impairment of property, plant and equipment		—			—			(20	)		—			(20	)
Cash outflows for additions to property, plant and equipment		83			85			74			3			245

(1)	Inter-segment net sales were $14.


	Twelve Months Ended December 31, 2017

	Potash			Nitrogen			Phosphate			All Others			Consolidated
Sales - third party	$	1,868		$	1,395		$	1,284		$	—		$	4,547
Freight, transportation and distribution - third party		(235	)		(129	)		(173	)		—			(537	)
Net sales - third party		1,633			1,266			1,111			—
Cost of goods sold - third party		(848	)		(1,046	)		(1,441	)		—			(3,335	)
Margin (cost) on inter-segment sales ⁽¹⁾		—			36			(36	)		—			—
Gross margin		785			256			(366	)		—			675
Items included in cost of goods sold, selling and administrative or other expenses:
Depreciation and amortization		(232	)		(203	)		(220	)		(37	)		(692	)
Impairment of property, plant and equipment ⁽²⁾		—			—			(305	)		—			(305	)
Cash outflows for additions to property, plant and equipment		219			239			185			8			651

(1)	Inter-segment net sales were $74.

(2)

During the fourth quarter of 2017, the company recognized an impairment loss of $250 associated with its White Springs and Feed Plants CGU. At December 31, 2017, the recoverable amount of this CGU was $96 based on value in use. Remaining impairment losses relate to phosphate property, plant and equipment at Aurora as a result of a feed product the company will no longer produce and a mining method the company will no longer use. Recoverable amounts were based on fair value less costs to sell.

Potash Corporation of Saskatchewan Inc.

Notes to the Condensed Consolidated Financial Statements

For the Three and Twelve Months Ended December 31, 2017

(in millions of US dollars except as otherwise noted)

(unaudited)

2. Segment Information (continued)


	Twelve Months Ended December 31, 2016

	Potash			Nitrogen			Phosphate			All Others			Consolidated

Sales - third party	$	1,630		$	1,467		$	1,359		$	—		$	4,456
Freight, transportation and distribution - third party		(250	)		(122	)		(163	)		—			(535	)
Net sales - third party		1,380			1,345			1,196			—
Cost of goods sold - third party		(943	)		(1,016	)		(1,132	)		—			(3,091	)
Margin (cost) on inter-segment sales ⁽¹⁾		—			32			(32	)		—			—
Gross margin		437			361			32			—			830
Items included in cost of goods sold, selling and administrative or other expenses:
Depreciation and amortization		(216	)		(213	)		(223	)		(43	)		(695	)
Share of Canpotex's ⁽²⁾ Prince Rupert project exit costs		(33	)		—			—			—			(33	)
Termination benefit costs		(32	)		—			—			—			(32	)
Impairment of property, plant and equipment		—			—			(47	)		—			(47	)
Cash outflows for additions to property, plant and equipment		342			263			216			72			893

(1)	Inter-segment net sales were $62.

(2)	Canpotex Limited ("Canpotex").

3. Transaction Relating to the Merger of Equals with Agrium Inc. (“Agrium”) and Acquisition of Agrichem

On January 1, 2018, after receiving all required regulatory approvals, the company and Agrium combined their businesses in a merger of equals by becoming wholly owned subsidiaries of a new parent company named Nutrien Ltd. (“Nutrien”). On January 2, 2018, the merged entity began trading on the Toronto Stock Exchange and New York Stock Exchange (“NYSE”) under the symbol NTR, and the shares of PotashCorp and Agrium were delisted.

Shareholders of PotashCorp received 0.400 common shares of Nutrien for each PotashCorp share held and shareholders of Agrium received 2.230 common shares of Nutrien for each Agrium share held. The exchange ratios represent the respective closing share prices of each company’s common shares at market close on the NYSE on August 29, 2016, the last trading day prior to when the companies announced that they were in preliminary discussions regarding a merger of equals, which is consistent with the approximate 10-day and 60-day volume weighted average prices through that date.

PotashCorp is the acquirer for accounting purposes, and as a result, the financial statements and related notes of Nutrien in 2018 and beyond will reflect the operations of Nutrien. Figures for 2017 and prior will reflect the operations of PotashCorp. The purchase consideration is approximately $16 billion. Valuations to determine the fair value of assets acquired and liabilities assumed are not yet complete due to the recent closing date of the Merger.

Key dates of the Merger:

• September 11, 2016 - The company entered into an agreement with Agrium to combine their businesses under the Canada Business Corporation Act.

• November 3, 2016 - The plan of arrangement was approved by the shareholders of both companies.

• November 7, 2016 - The Ontario Superior Court of Justice issued a final order approving the plan of arrangement.

• October 18, 2017 - Conditional approval was received from the Competition Commission of India, requiring PotashCorp to divest minority shareholdings in Sociedad Quimica y Minera de Chile S.A. (“SQM”), Arab Potash Company (“APC”) and ICL within a period of 18 months from November 2017, the issuance of the order.

• November 6, 2017 - Agrium signed definitive asset sales agreements to divest its Conda phosphate and North Bend nitric acid operations intended to address United States regulatory concerns.

• November 7, 2017 - Approval was received from China’s Ministry of Commerce, conditioned on the divestiture of PotashCorp’s minority shareholdings in SQM and APC within 18 months, and ICL within 9 months, from the closing of the Merger.

• December 27, 2017 - Clearance was received from the United States’ Federal Trade Commission conditional on certain divestitures by Agrium.

The sale of PotashCorp’s interest in ICL closed on January 24, 2018. Agrium completed the dispositions of certain operations on January 12, 2018, as a condition of approval of the Merger from the United States' Federal Trade Commission.

The companies had previously received unconditional regulatory clearance from Canada, Brazil and Russia.

For additional information with respect to the plan of arrangement, please refer to the Joint Management Information Circular of PotashCorp and Agrium dated October 3, 2016, a copy of which has been filed on SEDAR under PotashCorp's profile at www.sedar.com.

Potash Corporation of Saskatchewan Inc.

Notes to the Condensed Consolidated Financial Statements

For the Three and Twelve Months Ended December 31, 2017

(in millions of US dollars except as otherwise noted)

(unaudited)

3. Transaction Relating to the Merger of Equals with Agrium Inc. (“Agrium”) and Acquisition of Agrichem (continued)

On January 29, 2018, Nutrien announced the planned acquisition of Agrichem, a leading Brazilian specialty plant nutrition and plant health product company. The acquisition will be made in two tranches, with 80 percent of the business expected to be acquired by the end of March 2018. The remaining 20 percent of the business is expected to be acquired in 2019, with the price being based on 2018 earnings before interest, taxes, depreciation and amortization levels. Closing of the transaction is subject to regulatory approvals and satisfaction of customary conditions precedent.

4. Other Expenses


	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2017			2016			2017			2016

Foreign exchange gain (loss)	$	1		$	5		$	(21	)	$	(9	)
Share of earnings of equity-accounted investees		1			2			7			3
Dividend Income		—			—			—			2
Impairment of available-for-sale investment		—			—			—			(10	)
Other expenses		(2	)		(21	)		(3	)		(3	)
	$	—		$	(14	)	$	(17	)	$	(17	)

5. Income Tax Recovery (Expense)

A separate estimated average annual effective tax rate was determined for each taxing jurisdiction and applied individually to the pre-tax income of each jurisdiction.


	Three Months Ended					Twelve Months Ended
	December 31					December 31
Income Tax Related to Continuing Operations	2017			2016		2017			2016

Income tax recovery (expense)	$	153		$	10	$	183		$	(44	)
Actual effective tax rate on ordinary earnings		13	%		n/m		-7	%		24	%
Actual effective tax rate including discrete items		56	%		n/m		n/m			18	%
Discrete tax adjustments that impacted the tax rate	$	118		$	6	$	185		$	17

Significant items to note include the following:

• Ordinary earnings for the three months ended December 31, 2017 were negative. When combined with an income tax recovery, this created a positive actual effective tax rate. Compared to the same period last year, earnings were significantly lower in the United States and only slightly offset by increased earnings in Trinidad.

• The actual effective tax rate on ordinary earnings for the twelve months ended December 31, 2017 decreased compared to the same period last year due to different weightings between jurisdictions, most notably substantially lower earnings in the United States partially offset by higher earnings in Canada and Trinidad.

• In the fourth quarter of 2017, a deferred tax recovery of $187 was recorded as a result of a federal income tax rate decrease pursuant to US tax reform legislation.

• In the fourth quarter of 2017, a deferred tax expense of $68 was recorded to reflect Saskatchewan government legislation that reversed a provincial income tax rate decrease legislated earlier in the year. A $68 deferred tax recovery had been recorded in the second quarter of 2017 to reflect that rate decrease.

• In 2016, a current tax recovery of $16 ($3 in the fourth quarter of 2016) was recorded to adjust accruals after tax authority examinations.

Potash Corporation of Saskatchewan Inc.

Notes to the Condensed Consolidated Financial Statements

For the Three and Twelve Months Ended December 31, 2017

(in millions of US dollars except as otherwise noted)

(unaudited)

6. Investments Held for Sale and Discontinued Operations

The company classifies assets and liabilities as held for sale if it is highly probable that the carrying value will be recovered through a sale transaction within one year rather than through continuing use. Assets that are classified as held for sale are measured at the lower of the carrying amount and the fair value less costs to sell, with the exception of financial assets (including investments classified as available-for-sale) and therefore measured in accordance with Note 19 of the company's 2016 annual consolidated financial statements. For equity-accounted investments, the equity accounting ceases the date the investments were classified as held for sale. The company considers a discontinued operation to be a component of the company's business that either has been disposed of, or is classified as held for sale, and represents a separate major line of business or geographic area of operations or is a part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations.

The company's investments in SQM at December 1, 2017, and ICL and APC at December 31, 2017 were classified as held for sale and as discontinued operations, due to regulatory requirements to dispose of these investments, as discussed in Note 3. Share of earnings, dividend income and associated income taxes pertaining to these investments were reclassified from operating (loss) income to net income from discontinued operations. The company is actively seeking buyers for its investments in SQM and APC and expects to complete the sales in 2018. On January 24, 2018, the company completed the sale of its equity interests in ICL through a private secondary offering for net proceeds of $685, resulting in a loss on disposal of $19, net of income taxes of $NIL.

Assets Held for Sale


As at					December 31 2017			December 31 2016

Assets
Equity-accounted investees ⁽¹⁾					$	1,146		$ —
Available-for-sale investment ⁽²⁾						708		—
Current income tax assets						4		—
Assets held for sale					$	1,858		$ —


Liabilities

Deferred income tax liabilities					$	36		$ —

(1) SQM and APC. (2) ICL. *Net Income from Discontinued Operations*
	Three Months Ended				Twelve Months Ended
	December 31				December 31
	2017		2016		2017			2016

Share of earnings of equity-accounted investees	$	36	$	19	$	151		$ 92
Dividend income		7		9		24		31
Income tax recovery (expense)		1		5		(2	)	1
Net income from discontinued operations	$	44	$	33	$	173		$ 124


Net Income per Share from Discontinued Operations
Basic	$	0.05	$	0.03	$	0.21		$ 0.15
Diluted	$	0.05	$	0.03	$	0.21		$ 0.14

*Cash Flows from Discontinued Operations*
	Three Months Ended				Twelve Months Ended
	December 31				December 31
	2017		2016		2017			2016

Dividends from discontinued operations ⁽¹⁾	$	43	$	78	$	176		$ 195

(1)	Dividends from discontinued operations continue to be classified as cash provided by operating activities.

Potash Corporation of Saskatchewan Inc.

Notes to the Condensed Consolidated Financial Statements

For the Three and Twelve Months Ended December 31, 2017

(in millions of US dollars except as otherwise noted)

(unaudited)

7. Consolidated Statements of Cash Flow


	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2017			2016			2017			2016

Reconciliation of cash provided by operating activities
Net (loss) income	$	(76	)	$	46		$	327		$	323
Adjustments to reconcile net income to cash provided by operating activities
Depreciation and amortization		172			177			692			695
Impairment of property, plant and equipment		276			20			305			47
Net distributed (undistributed) earnings of equity-accounted investees		—			49			(1	)		70
Share-based compensation		2			(6	)		11			2
Recovery of deferred income tax		(174	)		(27	)		(273	)		(22	)
Pension and other post-retirement benefits		14			10			64			46
Asset retirement obligations and accrued environmental costs		4			16			7			29
Other long-term liabilities and miscellaneous		—			7			21			10
Subtotal of adjustments		294			246			826			877

Changes in non-cash operating working capital
Receivables		135			35			47			114
Inventories		(24	)		(41	)		(10	)		(21	)
Prepaid expenses and other current assets		(10	)		8			(13	)		17
Payables and accrued charges		62			59			48			(50	)
Subtotal of changes in non-cash operating working capital		163			61			72			60
Cash provided by operating activities	$	381		$	353		$	1,225		$	1,260


Supplemental cash flow disclosure
Interest paid	$	65		$	65		$	198		$	189
Income taxes paid	$	16		$	7		$	83		$	50

Potash Corporation of Saskatchewan Inc.

Notes to the Condensed Consolidated Financial Statements

For the Three and Twelve Months Ended December 31, 2017

(in millions of US dollars except as otherwise noted)

(unaudited)

8. Share-Based Compensation

During the three and twelve months ended December 31, 2017, the company issued stock options and performance share units (“PSUs”) to eligible employees under the 2016 Long-Term Incentive Plan (“LTIP”). Information on stock options and PSUs is summarized below:


	LTIP				Expense (Recovery) for all Employee Share-Based Compensation Plans
	Units Granted in 2017		Units Outstanding as at December 31, 2017		Three Months Ended					Twelve Months Ended
					December 31					December 31
					2017		2016			2017		2016

Stock options		1,482,829		4,469,182	$	1	$	(10	)	$	7	$	(2	)
Share-settled PSUs		555,918		935,570		—		—			4		3
Cash-settled PSUs		883,546		1,556,980		4		2			12		9
					$	5	$	(8	)	$	23	$	10

Weighted average grant date fair value per unit for stock options and share-settled PSUs granted during 2017 was $4.36 and $19.93, respectively.

Stock Options

Under the LTIP, stock options generally vest and become exercisable on the third anniversary of the grant date, subject to continuous employment or retirement, and have a maximum term of 10 years. The weighted average fair value of stock options granted was estimated as of the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions:


Exercise price per option	$	18.71
Expected annual dividend per share	$	0.40
Expected volatility		29%
Risk-free interest rate		1.67%
Expected life of options		5.7 years

Performance Share Units

PSUs granted under the LTIP in 2017 vest based on the achievement of performance metrics, over three years, comprising 1) the relative ranking of the company’s total shareholder return compared with a specified peer group using a Monte Carlo simulation and 2) the outcome of the company’s cash flow return on investment compared with its weighted average cost of capital. Compensation cost is measured based on 1) the grant date fair value of the units, adjusted for the company’s best estimate of the outcome of non-market vesting conditions ⁽¹⁾ at the end of each period for share-settled PSUs and 2) period-end fair value of the awards for cash-settled PSUs. PSUs granted under the LTIP settle in shares for grantees who are subject to the company’s share ownership guidelines and in cash for all other grantees.

(1)	The company’s cash flow return on investment compared with its weighted average cost of capital is a non-market vesting condition as performance is not tied to the company’s share price or relative share price.

9. Comparative Figures

In 2016 and 2017, prior period amounts classified as share of earnings of equity-accounted investees, dividend income and income tax recovery (expense) relating to discontinued operations, as described in Note 6, were reclassified from operating income to net income from discontinued operations on the statement of (loss) income. The remaining immaterial amounts associated with continuing operations for share of earnings of equity-accounted investees, dividend income and impairment of available-for-sale investment were aggregated in other expenses in Note 4. Transactions costs that were previously included in other expenses were reported as a separate line item in the statement of (loss) income given their significance in Note 7. Impairment for available-for-sale investment of $10 in 2016 was combined with other long-term liabilities and miscellaneous in Note 7 as the amount was not considered significant.

Potash Corporation of Saskatchewan Inc.

Selected Financial Data

(unaudited)

Three Months Ended

Twelve Months Ended

December 31

2017

2016

2017

2016

Potash Sales (tonnes - thousands)

Manufactured Product

North America

568

720

3,201

3,367

Offshore

1,340

1,489

6,096

5,277

Manufactured Product

1,908

2,209

9,297

8,644

Potash Net Sales

(US $ millions)

Sales

383

403

1,868

1,630

POTASH CORP OF SASKATCHEWAN INC 6-K