FIVE REASONS TO INVEST IN NUTRIEN
1. Demand is growing for our agricultural products and services
- The world’s population is expected to approach 10 billion by 2050, and rising incomes will further drive demand for higher-quality food. As a result, farmers will face continued pressure to produce more and better quality food on limited arable land, while minimizing impacts on the environment.
- High-quality nutrients, seed, crop protection products and customized services are critical to increase yields. As a result, demand for all crop inputs is expected to continue to rise.
- Nutrien is best positioned to provide innovative crop inputs and solutions that will help growers around the world meet this challenge.
2. We operate the leading global agricultural retail network
- Nutrien Retail is the largest direct-to-grower provider of crop inputs and solutions in the world, with approximately 1,600 locations globally and more than 3,300 crop advisors and agronomists.
- Our global scale provides unique procurement and logistical efficiencies, and our local focus ensures we are well positioned to respond to growers’ individual needs.
- Nutrien has a robust platform for growth. We focus on expanding our retail network through acquisitions and new builds and providing high-value innovation in precision agriculture, proprietary products and technology.
3. We are the largest crop nutrient company in the world
- With approximately 34 million tonnes of primary capacity, Nutrien is the pre-eminent global supplier of crop nutrients. We leverage these world-class assets with our retail distribution network to bring nutrients to market with unparalleled efficiency.
- We are the world’s largest producer of potash, with approximately 25 percent of global capacity. Our assets are in politically stable regions, and we have high-quality reserves to continue producing for decades to come. Through our extensive potash distribution network in North America – and our partnership with Canpotex for offshore exports – we are one of the industry’s lowest-cost producers into most key markets.
- We are the third-largest producer of nitrogen in the world, with well positioned assets in North America and Trinidad. Our nitrogen platform has global cost advantages and comes with significant regional distribution advantages.
- Our phosphate business has the most diverse product offering in the industry. While phosphate represents a relatively small contribution to our overall earnings, we have identified opportunities to further enhance the competitiveness of these assets, including elimination of higher-cost, third-party rock purchases.
4. Our diverse portfolio provides a stable earnings base and many avenues for growth
- The breadth and diversity of Nutrien's assets allows many avenues for growth and an unmatched capability to respond to – and benefit from – market opportunities. This position is further bolstered by an estimated $500-million in expected annual run-rate synergies generated by the merger.
- Our retail business offers a stable earnings base and many organic growth opportunities. These include proprietary products, acquisitions, greenfield builds, financial services and innovation and technology.
- Integration of retail distribution and crop nutrient production results in significant efficiencies in logistics and marketing, better market intelligence and counter-cyclicality to our cash flow.
- Our recently completed potash expansions offer a platform for growth as global demand rises, while providing an opportunity to lower operating costs as volumes grow.
5. We are well positioned to return cash to shareholders
- Nutrien’s assets are strategically located, integrated, and diversified – so we can generate strong cash margins and sizeable free cash flow even at low points in the nutrient cycle.
- With several large capital projects recently completed, significant potential to grow our retail business and half a billion dollars of identified synergies, Nutrien’s free cash flow can be further supported by upsides in nutrient and crop input prices. We have the ability to maintain and grow capital returns to shareholders and deliver value-added growth to the business, while preserving investment-grade credit rating.