News Column

Agrium Reports Fourth Quarter; Retail Delivers Record Results

February 20, 2014

CALGARY, ALBERTA--(Marketwired - Feb. 20, 2014) -

ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (TSX:AGU)(NYSE:AGU) announced today consolidated net earnings ("net earnings") from continuing operations of $110-million ($0.74 diluted earnings per share) for the fourth quarter of 2013, compared with net earnings from continuing operations of $358-million in the fourth quarter of 2012 ($2.37 diluted earnings per share). Net earnings were $99-million ($0.66 diluted earnings per share) for the fourth quarter of 2013, compared to net earnings of $354-million ($2.34 diluted earnings per share) in the fourth quarter of 2012.

Our net earnings from continuing operations, excluding the fourth quarter guidance exclusions mentioned below, were $126-million ($0.87 diluted earnings per share).(1) This excludes a purchase gain of $257-million related to the acquisition of the Viterra Inc. Agri-product assets ("Viterra acquisition") ($1.35 diluted earnings per share) and a fourth quarter pre-tax loss for the acquired Viterra operations of $27-million ($0.14 diluted earnings per share, includes $8-million of integration costs). The Viterra acquisition results were excluded from the original fourth quarter guidance provided in November 2013. Also excluded were $6-million of Corporate legal and other costs ($0.03 diluted earnings per share) incurred in the period related to the Viterra acquisition and a goodwill impairment of $220-million ($1.16 in diluted earnings per share) for the Landmark acquisition due to synergy delays and reduced expectations for sales, gross margins and long-term growth. Share-based payment expenses in the fourth quarter were $28-million ($0.15 diluted earnings per share).

Discontinued operations reported a net loss of $11-million ($0.08 diluted loss per share) for the fourth quarter and included a $75-million ($0.52 diluted earnings per share) insurance recovery for the resolution of a long-standing litigation case pertaining to soybean shipments and a $60-million post-tax write-down ($0.42 diluted earnings per share), primarily of goodwill, as a result of the previously announced strategic review of the Agrium Advanced Technologies business unit ("AAT").(1)

On an annual basis, 2013 net earnings from continuing operations were $1.08-billion ($7.31 diluted earnings per share), down from net earnings from continuing operations of $1.52-billion ($9.67 diluted earnings per share) in 2012. 2013 net earnings were $1.06-billion ($7.20 diluted earnings per share), compared to $1.50-billion ($9.55 diluted earnings per share) in 2012.

"Agrium's Retail results were excellent this quarter, particularly considering the decline in nutrient prices that occurred and the compressed fall application season in the U.S.," commented Chuck Magro, Agrium's President & CEO. "Retail achieved record fourth quarter results due to increased margins across almost all shelves. Our Wholesale business unit, which has more direct exposure to volatility in nutrient markets, saw their results impacted by lower global prices across all nutrients. Global nitrogen and phosphate markets have firmed significantly in early 2014 in response to what we expect will be a strong spring season," continued Mr. Magro.

"In a quarter where price instability and a compressed application window were a challenge, we delivered record results for Retail, which helped generate $1.2-billion in cash flow from operations for the quarter. This is one illustration of the benefits of our integrated strategy and why we remain confident in our ability to generate strong results over the coming years and deliver on our long-term targets," added Mr. Magro.

(1) The $0.87 EPS = $0.74 EPS (net earnings from continuing operations) + $1.16 EPS (Landmark goodwill impairment) + $0.15 EPS (share based payments) + 0.17 EPS (Viterra operations) - $1.35 EPS (Viterra purchase gain). Fourth quarter effective tax rate of 24 percent from continuing operations was used for adjusted diluted earnings per share calculations.

All dollar amounts refer to United States ("U.S.") dollars except where otherwise stated. Certain financial measures in this press release are not prescribed by International Financial Reporting Standards ("IFRS"), and are defined in the Additional IFRS and Non-IFRS Financial Measures section of this press release.

The segmented financial reporting included in this press release differs from our 2012 annual financial statements due to changes in segmented reporting adopted in our 2013 annual financial statements. Comparative figures for AAT in this press release have not been restated to reflect changes in segmented financial reporting.

2013 Fourth Quarter Operating Results

CONSOLIDATED NET EARNINGS

We have restated 2012 comparative figures as a result of adopting IFRS 11 Joint Arrangements whereby the classification and accounting of our investment in Profertil S.A. and other joint arrangements previously accounted for using the proportionate consolidation method are accounted for using the equity method.

Management has commenced with a divestment process for components of the AAT business unit that were not transitioned to Wholesale. We have classified these net assets as held for sale and have classified the related results of operations (including comparative 2012 results) as discontinued. See pages 6 and 8 of this press release for further details.

Agrium's 2013 fourth quarter net earnings from continuing operations were $110-million, or $0.74 diluted earnings per share from continuing operations, compared to net earnings from continuing operations of $358-million, or $2.36 diluted earnings per share from continuing operations, for the same quarter of 2012.

Financial Overview ---------------------------------------------------------------------------- Three months ended December 31, (millions of U.S. dollars, except per share amounts and where noted) 2013 2012 Change % Change ---------------------------------------------------------------------------- Sales 2,867 3,093 (226) (7) ---------------------------------------------------------------------------- Gross profit 740 974 (234) (24) ---------------------------------------------------------------------------- Expenses 557 445 112 25 ---------------------------------------------------------------------------- Earnings from continuing operations before finance costs and income taxes ("EBIT") 183 529 (346) (65) ---------------------------------------------------------------------------- Net earnings from continuing operations 110 358 (248) (69) ---------------------------------------------------------------------------- Net loss from discontinued operations (11) (4) (7) 175 ---------------------------------------------------------------------------- Net earnings 99 354 (255) (72) ---------------------------------------------------------------------------- Diluted earnings per share from continuing operations 0.74 2.36 (1.62) (69) ---------------------------------------------------------------------------- Diluted loss per share from discontinued operations (0.08) (0.02) (0.06) 300 ---------------------------------------------------------------------------- Diluted earnings per share 0.66 2.34 (1.68) (72) ---------------------------------------------------------------------------- Effective tax rate (%) 24 27 N/A (3) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------



Sales

Sales decreased by $226-million to $2.9-billion for the fourth quarter of 2013. Factors that affected our performance during the fourth quarter of 2013 compared to the fourth quarter of 2012 include the following:

-- Wholesale sales decreased by 24 percent to $963-million due to lower realized sales prices across all product lines and lower nitrogen volumes; and -- Retail sales increased by 6 percent to $2.1-billion largely due to Viterra which accounted for $276-million in sales during the current quarter. Crop nutrient sales decreased as colder weather impacted North American sales.



Gross Profit

Our gross profit for the fourth quarter of 2013 was $740-million, a decrease of $234-million compared to the fourth quarter of 2012. The main drivers of this variance consisted of:

-- Wholesale's gross profit decreased by $283-million to $170-million for the fourth quarter of 2013, compared to the fourth quarter of 2012 primarily as a result of weaker realized sales prices across all product lines and lower urea sales volumes due to outages at our Redwater and Carseland nitrogen facilities; and -- Retail's gross profit increased by $77-million to $586-million for the fourth quarter of 2013, compared to the fourth quarter of 2012 due to the inclusion of results from Viterra coupled with favorable nutrient cost positions and higher seed rebates from suppliers.



Expenses

Expenses increased by $112-million for the fourth quarter of 2013 compared to the fourth quarter of 2012. This difference is primarily a result of the following items:

-- A $220-million goodwill impairment was recorded in Retail - Australia as a result of reduced expectations for sales, gross margins and long-term growth in Retail - Australia; -- An increase in Retail selling expenses of $73-million driven by increased costs associated with Viterra and other recent acquisitions (see section "Retail" for further discussion); and -- A $46-million unfavorable change in share-based payments, with a $28- million share-based payments expense in the current quarter compared to a $18-million share-based payments recovery in the same period last year (see section "Other" for further discussion). The above increases were partially offset by a $257-million purchase gain reported in the fourth quarter of 2013. This represents the difference between the fair value of acquired net assets and the purchase price.



The following table is a summary of our other expenses (income) for the fourth quarters of 2013 and 2012, respectively.

---------------------------------------------------------------------------- Three months ended December 31, (millions of U.S. dollars) 2013 2012 ---------------------------------------------------------------------------- Realized loss (gain) on derivative financial instruments 1 (2) ---------------------------------------------------------------------------- Unrealized gain on derivative financial instruments (1) - ---------------------------------------------------------------------------- Interest income (25) (26) ---------------------------------------------------------------------------- Foreign exchange loss 16 9 ---------------------------------------------------------------------------- Environmental remediation and asset retirement obligations 2 2 ---------------------------------------------------------------------------- Bad debt recovery (11) (8) ---------------------------------------------------------------------------- Potash profit and capital tax 6 3 ---------------------------------------------------------------------------- Other 8 2 ---------------------------------------------------------------------------- (4) (20) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------



Effective Tax Rate

The effective tax rate on continuing operations was 24 percent for the fourth quarter compared to 27 percent for the same period last year due to permanent differences between tax and accounting on the Viterra purchase gain and the Retail - Australia goodwill impairment.

BUSINESS SEGMENT PERFORMANCE

Retail

Retail reported record fourth quarter sales of $2.1-billion up from $2.0-billion reported in the same quarter last year. Gross profit was $586-million in the fourth quarter of 2013, a 15 percent increase from last year's fourth quarter of $509-million. Retail reported EBITDA of $195-million, up $71-million from the fourth quarter of last year. Included in this quarter's results is a $257-million purchase gain for the Viterra acquisition, a $220-million goodwill impairment for the Landmark business in Australia, and results from the recently acquired Viterra business (fourth quarter EBITDA loss of $12-million), which included $8-million of integration costs. Excluding all Viterra-related items and the Landmark impairment, EBITDA would have been $170-million, the highest fourth quarter Retail EBITDA in our history. These excellent results were achieved due to increased margins for nutrients, seed and services and other product lines, which more than offset the headwinds of lower crop nutrient sales volumes (excluding Viterra volumes), lower nutrient prices and the compressed fall application season. On a full year basis, and excluding the items listed above for the fourth quarter, EBITDA reached $961-million in 2013, surpassing last year's record $951-million.

Total crop nutrient sales were $1.1-billion this quarter, on par with the fourth quarter of 2012. Incremental sales from the Viterra business were offset by lower nutrient sales volumes in the U.S. in the fourth quarter, due to the shortened fall application season. Gross profit for crop nutrients was $178-million this quarter, an increase of $23-million compared to the $155-million reported in the fourth quarter of 2012. Excluding the results from Viterra in the current quarter, gross profit increased by $4-million in 2013. Total crop nutrient margins as a percentage of sales were 17 percent in the fourth quarter of 2013, higher than the 14 percent reported in the same quarter last year. Although nutrient prices declined during the second half of 2013, increased prescription blend and proprietary nutrient sales resulted in higher dollar per tonne margins than 2012.

Crop protection sales were $511-million in the fourth quarter of 2013, compared to $491-million in sales in the same period last year. The increase was driven primarily by incremental sales from Viterra and higher sales of glyphosates in the quarter. Gross profit was $205-million this quarter, compared to $203-million reported in the fourth quarter of 2012. Crop protection margins as a percentage of sales were 40 percent this quarter. The 1 percent decline in margins in the fourth quarter of 2013 relative to the same period last year was due to a higher product mix of wholesale volumes, which traditionally represent lower margins than retail sales.

Seed sales were $95-million in the fourth quarter of 2013, down from the $105-million reported in the fourth quarter of last year. The reduction in North American seed sales was due to the late fall season, which particularly impacted wheat seed sales. Gross profit was $60-million this quarter, up from the $43-million reported last year. Seed margins as a percentage of sales were 63 percent in the fourth quarter of 2013, significantly higher than the 41 percent reported in the fourth quarter of 2012. The increase in gross profit and margins in the fourth quarter of 2013 is related to higher annual seed volume, which resulted in higher rebates for seed from suppliers this quarter. The continued sales growth in our proprietary Dyna-Gro branded seed versus national brand sales mix also supported higher average seed margins both in the quarter and on an annual basis. Our proprietary product line of seeds once again demonstrated solid growth in sales and gross profit for both the fourth quarter and the 2013 year, relative to the same periods last year. Proprietary seed accounted for approximately 18 percent of our total seed sales and approximately 26 percent of our seed gross profit for calendar year 2013.

Sales of merchandise in the fourth quarter of 2013 were $228-million, compared to $132-million in the same period last year. Gross profit for this product line was $30-million this quarter, compared to $21-million reported in the fourth quarter of 2012. The increase is related to incremental earnings from Viterra and additional sales volumes of animal health and other livestock-related products in Australia.

Services and other sales were $216-million this quarter, compared to the $151-million reported in the fourth quarter of 2012. Gross profit was $113-million in the fourth quarter of 2013, compared to $87-million for the same period last year. The increases in the current quarter relate to incremental gross profit from the purchased Viterra locations and increased Australian livestock sales commissions.

Selling expenses as a percentage of sales was 24 percent in the fourth quarter of 2013 which is up marginally from the 22 percent reported in the same period last year. Retail selling expenses were $504-million for the fourth quarter, compared to $431-million in the same period last year. The majority of the variance was due to increased costs associated with Viterra operating in a traditionally slower sales period than other Retail geographies. On a full-year basis, selling expenses as a percentage of sales remained similar to 2012 at approximately 15 percent.

In the fourth quarter of 2013, we recorded the Viterra acquisition within Retail. This resulted in a $257-million purchase gain, representing the difference between the fair value of acquired net assets and the purchase price. During the quarter, we also recorded goodwill impairment in Retail - Australia of $220-million due to synergy delays and reduced expectations for sales, gross margins and long-term growth.

Wholesale

Wholesale's 2013 fourth quarter sales were $963-million, down $310-million from the same quarter last year. Gross profit was $170-million this quarter, compared to $453-million in the fourth quarter of 2012. Wholesale reported EBITDA of $210-million in the fourth quarter of 2013, down from the $495-million reported in the same period last year. Wholesale's Adjusted EBITDA(2) was $234-million this quarter, compared to $516-million reported in the same period last year. Wholesale's results this quarter were principally impacted by significantly lower global crop nutrient prices.

(2 ) Adjusted EBITDA is defined as earnings (loss) before finance costs, income taxes, depreciation and amortization and before finance costs, income taxes, depreciation and amortization of joint ventures.

Nitrogen gross profit in the fourth quarter of 2013 was $129-million, compared to $293-million in the same quarter last year. Nitrogen sales volumes were 907,000 tonnes in the fourth quarter of 2013, down 59,000 tonnes from the same period last year. The lower sales volumes were primarily due to reduced product availability resulting from plant outages in the fourth quarter, accompanied by a shorter fall application season in the U.S. Realized sales prices for all nitrogen products were lower than the fourth quarter of 2012, with urea realized sales prices down 27 percent, or $148 per tonne year-over-year. Nitrogen cost of product sold was $314 per tonne this quarter, compared to $257 per tonne reported in the fourth quarter of 2012. The increase was due to higher North American gas prices and costs associated with outages at our Carseland and Redwater nitrogen facilities in the quarter. These outages lowered production by approximately 130,000 tonnes of nitrogen products and impacted per tonne costs, as fixed costs were spread across lower sales volumes. Our average nitrogen gross margins were $144 per tonne this quarter, compared to $304 per tonne in the same period last year.

Agrium's average natural gas cost included in cost of product sold was $3.51/MMBtu this quarter ($3.39/MMBtu including the impact of realized gains on natural gas derivatives), compared to $3.26/MMBtu for the same period in 2012 ($3.35/MMBtu including the impact of realized losses on natural gas derivatives). Hedging gains or losses are included in other expenses and not cost of product sold, thus are not part of the calculation of gross profit. The U.S. benchmark (NYMEX) natural gas price for the fourth quarter of 2013 was $3.63/MMBtu, compared to $3.36/MMBtu in the same quarter last year. The AECO (Alberta) basis differential was a $0.62/MMBtu discount to NYMEX in the fourth quarter of 2013, an increase from the $0.28/MMBtu discount in the fourth quarter of 2012.

Potash gross profit for the fourth quarter of 2013 was $39-million, compared to $79-million reported in the same quarter last year. The year-over-year decline was principally due to lower realized international and North American sales prices. Prices came under pressure due to weaker demand from India, delayed negotiations for second half Chinese supply contracts and uncertainty created by the breakup of the Belarusian Potash Company. International sales volumes were 89,000 tonnes this quarter, in line with 86,000 tonnes reported in the fourth quarter of last year. North American sales volumes this quarter were 255,000 tonnes, also consistent with the volumes achieved for the same period last year. Potash cost of product sold was $201 per tonne this quarter, compared to $216 per tonne reported in the fourth quarter of 2012. The decrease was due to a higher proportion of sales shipped directly to end customers compared to last year, which lowered the average freight cost. Gross margin was $112 per tonne in the fourth quarter of 2013, compared to the $233 per tonne in the same quarter of 2012. In the second half of 2014, Agrium will take an extended 14 week turnaround at our Vanscoy potash mine to tie in the one million tonne expansion project.

Phosphate gross profit was a loss of $4-million in the fourth quarter of 2013, compared to a $47-million profit in the same quarter last year. The decrease was primarily a result of lower realized sales prices derived from weak international market conditions in the fourth quarter. Phosphate sales volumes this quarter were 285,000 tonnes, slightly higher than the 279,000 tonnes sold in the fourth quarter of 2012. Realized phosphate sales prices were $560 per tonne this quarter, a $162 per tonne decrease from the same quarter last year. Phosphate cost of product sold was $576 per tonne in the fourth quarter of 2013, a $20 per tonne increase from the same period last year. The increase was due to higher costs at both of our phosphate facilities, partially due to higher ammonia costs resulting from higher natural gas costs. The increase in costs at the Redwater facility was largely due to higher rock input costs associated with the transition to imported rock, after economic reserves of this input from our Kapuskasing, Ontario mine were depleted in the second quarter of 2013. Gross margin was a loss of $16 per tonne in the fourth quarter of 2013, compared to a positive margin of $166 per tonne in the same period in 2012.

Gross profit from ammonium sulfate and other products was $12-million this quarter, a reduction of $14-million from the same period last year. This was due to lower realized sales prices and lower customer sales resulting from limited customer storage available this quarter. Product purchased for resale gross profit was a loss of $6-million this quarter, compared to a profit of $8-million in the fourth quarter of 2012 as a result of lower North American demand and lower global sales prices for nutrients.

Advanced Technologies

After conducting a strategic review of AAT in 2013, a decision was made in December 2013 to transition the Agriculture business of AAT back into our Wholesale business unit. The Agriculture business includes Environmentally Smart Nitrogen ("ESN") and Micronutrient products. Management has commenced with a divestment process for the Turf and Ornamental and Direct Solutions businesses. These businesses have been reported within discontinued operations. As a result, in 2013 we moved to two core strategic business units, Retail and Wholesale. The results reported for AAT in this press release represent only the Agriculture business that will be reported within Wholesale in the 2014 results; consequently these results are not directly comparable to years prior to 2012 as restated in this press release.

AAT reported a quarterly gross profit of $2-million in the fourth quarter of 2013, a decrease of $21-million from the $23-million reported in the same period last year. EBITDA was $3-million in the fourth quarter, a $15-million decrease from the same period last year. The lower year-over-year results were primarily due to lower than forecasted sales resulting from the later than expected fall application window and weak urea markets that impacted ESN margins.

Other

EBITDA for our Other non-operating business unit for the fourth quarter of 2013 was a loss of $94-million, compared to a loss of $2-million for the fourth quarter of 2012. The unfavorable change was primarily driven by:

-- A $46-million unfavorable change in share-based payments, where there was a $28-million expense in the fourth quarter of 2013 compared to an $18-million recovery in the fourth quarter of 2012. This was largely caused by an appreciation of our share price during the fourth quarter of 2013 compared to a depreciation of our share price during the fourth quarter of 2012; -- A $7-million increase in gross profit elimination for the three months ended December 31, 2013 compared to the three months ended December 31, 2012 which reflected more inter-segment inventory held in our Retail business unit not yet sold to external customers; -- A $6-million unfavorable change on foreign exchange losses; and -- $6-million in Viterra acquisition costs.



OUTSTANDING SHARE DATA

The number of Agrium's outstanding shares at January 31, 2014 was approximately 144 million. At January 31, 2014, the number of shares issuable pursuant to stock options outstanding (issuable assuming full exercise, where each option granted can be exercised for one common share) was approximately nil.

SELECTED QUARTERLY INFORMATION ---------------------------------------------------------------------------- (millions of U.S. dollars, except per share 2013 2013 2013 2013 2012 2012 2012 2012 amounts) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 ---------------------------------------------------------------------------- Sales 2,867 2,796 6,908 3,156 3,093 2,768 6,669 3,494 ---------------------------------------------------------------------------- Gross profit 740 629 1,699 705 974 730 1,831 773 ---------------------------------------------------------------------------- Net earnings from continuing operations 110 80 744 146 358 140 859 159 ---------------------------------------------------------------------------- Net (loss) earnings from discontinued operations (11) (4) 3 (5) (4) (11) 1 (4) ---------------------------------------------------------------------------- Net earnings 99 76 747 141 354 129 860 155 ---------------------------------------------------------------------------- Earnings per share from continuing operations attributable to equity holders of Agrium: ---------------------------------------------------------------------------- Basic 0.74 0.54 5.00 0.98 2.37 0.87 5.44 0.99 ---------------------------------------------------------------------------- Diluted 0.74 0.54 5.00 0.98 2.36 0.87 5.43 0.99 ---------------------------------------------------------------------------- (Loss) earnings per share from discontinued operations attributable to equity holders of Agrium: ---------------------------------------------------------------------------- Basic (0.08) (0.02) 0.02 (0.04) (0.03) (0.07) - (0.02) ---------------------------------------------------------------------------- Diluted (0.08) (0.02) 0.02 (0.04) (0.02) (0.07) 0.01 (0.02) ---------------------------------------------------------------------------- Earnings per share attributable to equity holders of Agrium: ---------------------------------------------------------------------------- Basic 0.66 0.52 5.02 0.94 2.34 0.80 5.44 0.97 ---------------------------------------------------------------------------- Diluted 0.66 0.52 5.02 0.94 2.34 0.80 5.44 0.97 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------



The agricultural products business is seasonal in nature. Consequently, comparisons made on a year-over-year basis are more appropriate than quarter-over-quarter comparisons. Crop input sales are primarily concentrated in the spring and fall crop input application seasons, which are in the second quarter and fourth quarter. Crop nutrient inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete.

BUSINESS ACQUISITION

We completed the acquisition of 100 percent of certain Retail Canadian and Australian agri-products assets of Viterra from Glencore International plc ("Glencore") on October 1, 2013. The acquired assets form part of our Retail business unit and include over 200 farm centers in Canada as well as distribution assets in Australia. Benefits of the acquisition include expansion of geographical coverage for the sale of crop inputs in Canada and Australia, acquisition of a significant customer base and talented workforce and synergies between Agrium and Viterra, including cost savings opportunities. We have recorded a purchase gain of $257-million representing the difference between the fair value of acquired net assets and the purchase price.

DISCONTINUED OPERATIONS

Following the settlement of litigation in December 2013, we received $75-million in the fourth quarter of 2013 for an insurance claim relating to a division of AWB Limited ("AWB"), that we acquired in 2010 and sold in 2011. We had not previously accrued a receivable for this claim because of the uncertainty of the outcome of the litigation. We incurred an additional $22-million of legal fees and additional settlements related to the sold division of AWB.

In December 2013, Agrium's Board of Directors approved the transition of parts of the AAT business unit, consisting of our ESN and Micronutrients operations to our Wholesale business unit. Management has commenced with a divestment process for components of the AAT business unit that we did not transition to Wholesale. We consider that a sale by December 2014 is highly probable. We have classified assets of the operations not transferred to Wholesale as held for sale, and have classified related results of operations as discontinued. Additionally, we recorded the assets held for sale at fair value less costs to sell which resulted in a $60-million post-tax write-down within discontinued operations primarily related to goodwill.

NORMAL COURSE ISSUER BID

On May 14, 2013, the Toronto Stock Exchange ("TSX") accepted Agrium's notice of intention to make a normal course issuer bid ("NCIB") whereby Agrium may purchase up to 7,472,587 common shares on the TSX and New York Stock Exchange during the period from May 21, 2013 to May 20, 2014 with a daily purchase limit of 133,301 common shares on the TSX. During the period from May 21, 2013 to December 31, 2013, we purchased approximately 5.8 million shares at an average share price of $86 for total consideration of approximately $498-million under our NCIB.

ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES

Certain financial measures in this 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.

In general, an additional IFRS financial measure is a measure relevant to understanding a company's financial performance that is not a minimum measure mandated by IFRS. A non-IFRS financial measure generally either excludes or includes amounts that are not excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. Refer to the following tables for further discussion of how they are calculated and their usefulness to users including management. Non-IFRS financial measures are not recognized measures under IFRS and our method of calculation may not be directly comparable to that of other companies. 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 additional IFRS financial measures, their definitions and how management assesses each measure. As the measures set out below are presented in our consolidated financial statements included in this press release, they are classified as additional IFRS financial measures where they reflect consolidated Agrium, and are classified as non-IFRS financial measures where they do not reflect consolidated Agrium, including references to EBITDA when presented on an operating segment basis.

---------------------------------------------------------------------------- Additional IFRS Definition Management's assessment financial measures ---------------------------------------------------------------------------- EBIT Earnings (loss) from EBIT provides a continuing operations supplemental measure before finance costs and used by management to: income taxes. (1) evaluate the effectiveness of our businesses; (2) evaluate our ability to service debt; and (3) determine resource allocations. We believe EBIT is useful to investors, securities analysts and management, as the measure allows for an evaluation of segment performance exclusive of capital structure and income taxes, both of which are not a direct result of the efficiency of each business and are generally accounted for and evaluated on a consolidated basis. ---------------------------------------------------------------------------- Consolidated ROOCE Last 12 months' EBIT Consolidated ROOCE (Consolidated return on less income taxes at a provides a measure of operating capital tax rate of 27 percent our operating employed) (2012 - 28 percent) performance and the divided by rolling four efficiency of our quarter average capital allocation operating capital process over the long employed. Operating term. We believe this capital employed metric is useful in includes non-cash measuring and maximizing working capital, shareholder value in a property, plant and growing company. equipment, investments in associates and joint ventures, and other assets. ---------------------------------------------------------------------------- Consolidated ROCE Last 12 months' EBIT Refer to ROOCE. (Consolidated return on less income taxes at a capital employed) tax rate of 27 percent (2012 - 28 percent) divided by rolling four quarter average capital employed. Capital employed includes operating capital employed, intangibles and goodwill. ---------------------------------------------------------------------------- The following table outlines our non-IFRS financial measures, their definitions and usefulness, and how management assesses each measure. ---------------------------------------------------------------------------- Non-IFRS financial Definition Management's assessment measures ---------------------------------------------------------------------------- EBITDA Earnings (loss) from Refer to EBIT. This continuing operations measure is also used by before finance costs, investors and securities income taxes, analysts as a valuation depreciation and metric and as an amortization. alternative to cash provided by operating activities. ---------------------------------------------------------------------------- Adjusted EBITDA Earnings (loss) from Refer to EBIT and continuing operations EBITDA. Management before finance costs, believes that this income taxes, metric provides useful depreciation and comparative information amortization and before on our profitability, as finance costs, income Adjusted EBITDA adds taxes, depreciation and back finance costs, amortization of joint income taxes, ventures. depreciation and amortization of joint ventures. ---------------------------------------------------------------------------- EBITDA to sales EBITDA divided by sales. Metric is used to measure operating performance earnings and cash flow we generate from each dollar of sales. We believe this metric is useful in providing a basis to evaluate operating profitability that is comparable from period to period. ---------------------------------------------------------------------------- Retail - North America These measures when Metrics are used by and Retail measures: calculated using management to evaluate return on operating information from our our Retail business. We capital employed; return Retail segment are believe these metrics on capital employed; considered non-IFRS are also useful to average non-cash working financial measures as investors and securities capital to sales; and the specific Retail analysts in evaluating operating coverage components are not operating performance of ratio. separately presented in our Retail business. our consolidated financial statements or notes to the consolidated financial statements. See definitions for ROOCE and ROCE in the preceding Additional IFRS Financial Measures table. ---------------------------------------------------------------------------- Comparable store sales Represents the increase Metric is commonly used or decrease in current in the retail and period Retail store distribution industry. sales compared to the We believe this metric prior period. is useful in highlighting the We include a location in performance of our the comparable store existing stores by base once it is in measuring the change in operation or owned for sales for such stores over 12 months. If we for a period over the close a store, we retain comparable period of the sales of the closed equivalent length. location in the comparable store base if the closed location is in close geographical proximity to an existing location, unless we plan to exit the market area or are unable to economically or logistically serve it. We do not make adjustments for temporary closures, expansions or renovations of stores. ---------------------------------------------------------------------------- Normalized comparable Comparable store sales Refer to comparable store sales normalized by using store sales. This metric published nitrogen, removes fluctuations phosphate and potash created by changes in ("NPK") benchmark prices commodity prices. and adjusting current year prices to reflect pricing from the previous year based on our percent of NPK utilization by product. ---------------------------------------------------------------------------- RECONCILIATIONS OF ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES Return on operating capital employed and return on capital employed Rolling four quarters ended December 31, 2013 ------------------------------------------------------------------------- Retail - (millions of U.S. dollars, except North Consolidated as noted) America Retail Agrium ------------------------------------------------------------------------- EBIT less income taxes ------------------------------------------------------------------------- EBIT 940 748 1,630 ------------------------------------------------------------------------- Income taxes at a tax rate of 27 percent (2012 - 28 percent) 254 202 440 ------------------------------------------------------------------------- 686 546 1,190 ------------------------------------------------------------------------- Average operating capital employed ------------------------------------------------------------------------- Average non-cash working capital 1,715 2,337 2,698 ------------------------------------------------------------------------- Average property, plant and equipment 726 852 4,244 ------------------------------------------------------------------------- Average investments in associates and joint ventures 33 79 631 ------------------------------------------------------------------------- Average other assets 5 15 104 ------------------------------------------------------------------------- 2,479 3,283 7,677 ------------------------------------------------------------------------- Return on operating capital employed (ROOCE) (%) 28% 17% 15% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Average capital employed ------------------------------------------------------------------------- Average operating capital employed 2,479 3,283 7,677 ------------------------------------------------------------------------- Average intangibles 547 622 660 ------------------------------------------------------------------------- Average goodwill 1,791 2,125 2,206 ------------------------------------------------------------------------- 4,817 6,030 10,543 ------------------------------------------------------------------------- Return on capital employed (ROCE) (%) 14% 9% 11% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Rolling four quarters ended December 31, 2012 ---------------------------------------------------------------------- Retail - (millions of U.S. dollars, except North Consolidated as noted) America Retail Agrium ---------------------------------------------------------------------- EBIT less income taxes ---------------------------------------------------------------------- EBIT 719 757 2,216 ---------------------------------------------------------------------- Income taxes at a tax rate of 27 percent (2012 - 28 percent) 201 212 620 ---------------------------------------------------------------------- 518 545 1,596 ---------------------------------------------------------------------- Average operating capital employed ---------------------------------------------------------------------- Average non-cash working capital 1,642 2,276 2,539 ---------------------------------------------------------------------- Average property, plant and equipment 593 708 3,029 ---------------------------------------------------------------------- Average investments in associates and joint ventures 17 81 601 ---------------------------------------------------------------------- Average other assets 5 19 44 ---------------------------------------------------------------------- 2,257 3,084 6,213 ---------------------------------------------------------------------- Return on operating capital employed (ROOCE) (%) 23% 18% 26% ---------------------------------------------------------------------- ---------------------------------------------------------------------- Average capital employed ---------------------------------------------------------------------- Average operating capital employed 2,257 3,084 6,213 ---------------------------------------------------------------------- Average intangibles 499 593 650 ---------------------------------------------------------------------- Average goodwill 1,790 2,209 2,305 ---------------------------------------------------------------------- 4,546 5,886 9,168 ---------------------------------------------------------------------- Return on capital employed (ROCE) (%) 11% 9% 17% ---------------------------------------------------------------------- ---------------------------------------------------------------------- Adjusted EBITDA and EBITDA to EBIT ---------------------------------------------------------------------------- Three months ended December 31, 2013 ------------------------------------------------ (millions of U.S. AAT dollars) Retail Wholesale (1) Other Consolidated ---------------------------------------------------------------------------- Adjusted EBITDA 195 234 3 (94) 338 ---------------------------------------------------------------------------- Equity accounted joint ventures: Finance costs and income taxes - 19 - - 19 ---------------------------------------------------------------------------- Depreciation and amortization - 5 - - 5 ---------------------------------------------------------------------------- EBITDA 195 210 3 (94) 314 ---------------------------------------------------------------------------- Depreciation and amortization 72 50 4 5 131 ---------------------------------------------------------------------------- EBIT 123 160 (1) (99) 183 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- -------------------------------------------------------------------------- Three months ended December 31, 2012 ------------------------------------------------ (millions of U.S. dollars) Retail Wholesale AAT (1) Other Consolidated ------------------------ ------------------------------------------------ Adjusted EBITDA 124 516 18 (2) 656 ------------------------ ------------------------------------------------ Equity accounted joint ventures: Finance costs and income taxes - 17 - - 17 -------------------------------------------------------------------------- Depreciation and amortization - 4 - - 4 -------------------------------------------------------------------------- EBITDA 124 495 18 (2) 635 ------------------------ ------------------------------------------------ Depreciation and amortization 49 48 3 6 106 -------------------------------------------------------------------------- EBIT 75 447 15 (8) 529 ------------------------ ------------------------------------------------ ------------------------ ------------------------------------------------

(1) Represents ESN and Micronutrients operations. See section "Discontinued Operations" above. Retail comparable store sales and Retail normalized comparable store sales ---------------------------------------------------------------------------- Twelve months ended December 31, (millions of U.S. dollars, except as noted) 2013 2012 ---------------------------------------------------------------------------- Retail sales from the current period comparable store base 11,234 11,182 ---------------------------------------------------------------------------- Prior year Retail sales 11,479 10,315 ---------------------------------------------------------------------------- Comparable store sales (%) (2.1%) 8.4% ---------------------------------------------------------------------------- Current year sales normalized for NPK benchmark prices 12,000 11,147 ---------------------------------------------------------------------------- Normalized comparable store sales (%) 4.5% 8.1% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------



OUTLOOK, KEY RISKS AND UNCERTAINTIES

Global grain and oilseed producers experienced an outstanding year of productivity in 2013. According to the United States Department of Agriculture ("USDA"), global grain and oilseed acreage and yields set new records, combining for record production. In the U.S., corn production set a new record and in Western Canada, wheat and canola production set new records and overall crop production was 27 percent above the previous record set in 2008. Record crop production was the result of favorable weather combined with strong market incentives to increase production.

Record crop production has resulted in significantly lower prices for most crops; however, prices remain high relative to other periods with record production. The combination of current crop prices and record U.S. net farm income in 2013 provide a strong incentive to plant historically high acreage again in 2014. Lower and more stable crop prices have resulted in robust grain demand growth, with the USDA projecting that global grain demand growth will be over 4 percent in 2013/14, which would be the highest annual growth since 1978/79 and over 1.5 percentage points above any year in the past decade, which was a period of very strong demand growth.

At current crop prices, North American spring crop area in 2014 is expected to be near 2013 levels, which is expected to support crop input demand and growers continuing to seek the top seed genetics available. Analysts expect that corn acreage will decline, but that the decline will mostly be offset by increased area of soybeans in the U.S. and canola in Western Canada. Crop nutrient shipments are expected to be strong in the first half of 2014, in part due to a shorter fall application season in 2013 due to weather.

The global urea market started to strengthen in early 2014, driven by strong demand in markets such as North America and Europe and supply constraints from some major export regions. Analysts project that a large volume of urea will need to be imported between now and the beginning of the application season due to the delayed demand at the beginning of the 2013/14 fertilizer year. U.S. offshore urea import levels in the first half of 2014 will likely need to meet or exceed record levels achieved in 2013. The relatively poor fall ammonia season is expected to result in increased demand for urea and UAN applications through the spring season. Stronger global urea prices may result in additional Chinese urea exports in the first half of 2014 due to the change in their export tariff this year but there has been limited response in terms of additional exports so far this year. North American nitrogen demand is projected to decline about 2 percent to 4 percent in 2013/14 due primarily to reduced corn acreage, while global nitrogen demand is projected to increase by 1.5 percent to 2 percent in 2014 from 2013 levels.

The global potash market was characterized by significant supply and demand uncertainty in 2013, but enters 2014 with more clarity and stability. The Chinese supply agreements with major suppliers reached in January 2014 has provided additional certainty to the market and pent up demand by other importing regions is expected to result in improved global import demand in the first half of 2014. Brazil imported record potash volumes of over 8 million tonnes in 2013 and import demand from Brazil is expected to remain strong in 2014. North American potash demand is projected to be relatively flat, to down 2 percent, from 2012/13 levels in 2013/14. We expect global potash shipments to increase from 54 million tonnes in 2013 to between 56 million and 58 million tonnes in 2014.

Phosphate prices have increased significantly since the end of November 2013, driven by strong demand, particularly in North and South America. The impact of stronger global demand has been amplified by turnarounds and unplanned shut-downs by some major producers. Global phosphate production costs have increased as global sulfur prices have more than doubled, driven by strong Chinese demand. Indian DAP imports are expected to improve in 2014 from depressed 2013 levels, but the timing and scale of imports continues to be a source of uncertainty to the phosphate market. North American phosphate demand in 2013/14 is projected to be flat to down 2 percent from 2012/13 levels, while global demand in 2014 is projected to increase by 2 to 4 percent from 2013 levels.

Forward-Looking Statements

Certain statements and other information included in this press release constitute "forward-looking information" within the meaning of applicable Canadian securities legislation or constitute "forward-looking statements" within the meaning of applicable U.S. securities legislation (collectively, the "forward-looking statements"). All statements in this press release other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to, statements as to management's expectations with respect to: future crop and crop input volumes, demand, margins, prices and sales; business and financial prospects; dividends and other plans, strategies, objectives and expectations, including with respect to future operations of Agrium and proposed acquisitions and divestitures and the growth and stability of our earnings. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such 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 in this press release. Although Agrium 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 key assumptions that have been made in connection with the forward-looking statements include Agrium's ability to successfully integrate and realize the anticipated benefits of its already completed and future acquisitions, including the recently completed acquisition of certain Retail Agri-products assets of Viterra.

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 economic, market and business conditions, weather conditions including impacts from regional flooding and/or drought conditions; crop prices; the supply and demand and price levels for our major 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, and political risks, including civil unrest, actions by armed groups or conflict, as well as counterparty and sovereign risk; and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. There is a risk that the Egyptian Misr Fertilizer Production Company nitrogen facility in Egypt may not be allowed to proceed with the completion of the two new facilities. Additionally, there are risks associated with Agrium's acquisition of AWB, including litigation risk resulting from AWB having been named in litigation commenced by the Iraqi Government relating to the United Nations Oil-For-Food Programme. There are risks associated with our acquisition of certain Retail Agri-products assets of Viterra, including: timing and costs of the associated integration of the retained Viterra Retail Agri-products assets, the size and timing of expected synergies could be less favorable than anticipated; disruption from the acquisition making it more difficult to maintain relationships with customers, employees and suppliers; our efforts to integrate Viterra's Retail Agri-products assets into our existing business could result in the disruption of our ongoing business and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. Furthermore, the potential divestiture of the Turf and Ornamental and Direct Solutions businesses and any potential financial gains or losses resulting from the completion of the strategic review process may differ materially from those in the forward-looking statements.

Agrium disclaims any intention or obligation to update or revise any forward-looking statements in this press release 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.

OTHER

Agrium Inc. is a major Retail supplier of agricultural products and services in North America, South America and Australia and a leading global Wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America. Agrium's strategy is to provide the crop inputs and services needed to feed a growing world. We focus on maximizing shareholder returns by driving continuous improvements to our base businesses, pursuing value-added growth opportunities across the crop input value chain and returning capital to shareholders.

A WEBSITE SIMULCAST of the 2013 4th Quarter Conference Call will be available in a listen-only mode beginning Friday, February 21st, 2014 at 7:30 a.m. MST (9:30 a.m. EST). Please visit the following website: www.agrium.com.

AGRIUM INC. Consolidated Statements of Operations (Millions of U.S. dollars, except per share amounts) (Unaudited) Three months Twelve months ended ended December 31, December 31, ---------------------------------------------------------------------------- 2013 2012 (1) 2013 2012 (1) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Sales 2,867 3,093 15,727 16,024 ---------------------------------------------------------------------------- Cost of product sold 2,127 2,119 11,954 11,716 ---------------------------------------------------------------------------- Gross profit 740 974 3,773 4,308 ---------------------------------------------------------------------------- Expenses ---------------------------------------------------------------------------- Selling 511 438 1,876 1,697 ---------------------------------------------------------------------------- General and administrative 116 49 329 428 ---------------------------------------------------------------------------- Earnings from associates and joint ventures (29) (22) (68) (91) ---------------------------------------------------------------------------- Purchase gain (257) - (257) - ---------------------------------------------------------------------------- Goodwill impairment 220 - 220 - ---------------------------------------------------------------------------- Other (income) expenses (4) (20) 43 58 ---------------------------------------------------------------------------- Earnings before finance costs and income taxes 183 529 1,630 2,216 ---------------------------------------------------------------------------- Finance costs related to long-term debt 21 22 90 89 ---------------------------------------------------------------------------- Other finance costs 18 15 66 41 ---------------------------------------------------------------------------- Earnings before income taxes 144 492 1,474 2,086 ---------------------------------------------------------------------------- Income taxes 34 134 394 570 ---------------------------------------------------------------------------- Net earnings from continuing operations 110 358 1,080 1,516 ---------------------------------------------------------------------------- Net loss from discontinued operations (11) (4) (17) (18) ---------------------------------------------------------------------------- Net earnings 99 354 1,063 1,498 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Attributable to: ---------------------------------------------------------------------------- Equity holders of Agrium 96 354 1,062 1,494 ---------------------------------------------------------------------------- Non-controlling interest 3 - 1 4 ---------------------------------------------------------------------------- Net earnings 99 354 1,063 1,498 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Earnings per share attributable to equity holders of Agrium ---------------------------------------------------------------------------- Basic earnings per share from continuing operations 0.74 2.37 7.31 9.67 ---------------------------------------------------------------------------- Basic loss per share from discontinued operations (0.08) (0.03) (0.11) (0.11) ---------------------------------------------------------------------------- Basic earnings per share 0.66 2.34 7.20 9.56 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Diluted earnings per share from continuing operations 0.74 2.36 7.31 9.67 ---------------------------------------------------------------------------- Diluted loss per share from discontinued operations (0.08) (0.02) (0.11) (0.12) ---------------------------------------------------------------------------- Diluted earnings per share 0.66 2.34 7.20 9.55 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations. AGRIUM INC. Consolidated Statements of Comprehensive Income (Millions of U.S. dollars) (Unaudited) Three months Twelve months ended ended December 31, December 31, ---------------------------------------------------------------------------- 2013 2012 2013 2012 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net earnings 99 354 1,063 1,498 ---------------------------------------------------------------------------- Other comprehensive (loss) income ---------------------------------------------------------------------------- Items that are or may be reclassified to earnings ---------------------------------------------------------------------------- Available for sale financial instruments ---------------------------------------------------------------------------- (Losses) gains (4) 1 (8) 1 ---------------------------------------------------------------------------- Foreign currency translation differences ---------------------------------------------------------------------------- (Losses) gains (171) (33) (340) 64 ---------------------------------------------------------------------------- Reclassifications to earnings - (1) - (1) ---------------------------------------------------------------------------- Associates and joint ventures loss (5) (2) (4) (3) ---------------------------------------------------------------------------- (180) (35) (352) 61 ---------------------------------------------------------------------------- Items that will never be reclassified to earnings ---------------------------------------------------------------------------- Post-employment benefits ---------------------------------------------------------------------------- Actuarial (losses) gains (3) 15 45 (7) ---------------------------------------------------------------------------- Deferred income taxes 1 (4) (14) 2 ---------------------------------------------------------------------------- (2) 11 31 (5) ---------------------------------------------------------------------------- Other comprehensive (loss) income (182) (24) (321) 56 ---------------------------------------------------------------------------- Comprehensive (loss) income (83) 330 742 1,554 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Attributable to: ---------------------------------------------------------------------------- Equity holders of Agrium (84) 331 743 1,550 ---------------------------------------------------------------------------- Non-controlling interest 1 (1) (1) 4 ---------------------------------------------------------------------------- Comprehensive (loss) income (83) 330 742 1,554 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AGRIUM INC. Consolidated Statements of Cash Flows (Millions of U.S. dollars) (Unaudited) Three months Twelve months ended ended December 31, December 31, ---------------------------------------------------------------------------- 2012 2012 2013 (1) 2013 (1) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Operating ---------------------------------------------------------------------------- Net earnings from continuing operations 110 358 1,080 1,516 ---------------------------------------------------------------------------- Adjustments for ---------------------------------------------------------------------------- Depreciation and amortization 131 106 472 413 ---------------------------------------------------------------------------- Earnings from associates and joint ventures (29) (22) (68) (91) ---------------------------------------------------------------------------- Purchase gain (257) - (257) - ---------------------------------------------------------------------------- Goodwill impairment 220 - 220 - ---------------------------------------------------------------------------- Share-based payments 28 (18) (7) 108 ---------------------------------------------------------------------------- Unrealized gain on derivative financial instruments (1) - (15) (17) ---------------------------------------------------------------------------- Unrealized foreign exchange (gain) loss (2) 10 - 2 ---------------------------------------------------------------------------- Interest income (25) (26) (76) (91) ---------------------------------------------------------------------------- Finance costs 39 37 156 130 ---------------------------------------------------------------------------- Income taxes 34 134 394 570 ---------------------------------------------------------------------------- Other 5 (1) 30 77 ---------------------------------------------------------------------------- Interest received 26 26 77 91 ---------------------------------------------------------------------------- Interest paid (24) (10) (140) (108) ---------------------------------------------------------------------------- Income taxes paid (71) (54) (663) (405) ---------------------------------------------------------------------------- Dividends from associates and joint ventures 1 10 28 13 ---------------------------------------------------------------------------- Net changes in non-cash working capital 1,036 409 536 (138) ---------------------------------------------------------------------------- Cash provided by operating activities 1,221 959 1,767 2,070 ---------------------------------------------------------------------------- Investing ---------------------------------------------------------------------------- Acquisitions, net of cash acquired (8) (136) (64) (213) ---------------------------------------------------------------------------- Acquisition of Viterra Inc. 328 (1,801) 1,260 (1,801) ---------------------------------------------------------------------------- Capital expenditures (548) (402) (1,755) (1,225) ---------------------------------------------------------------------------- Capitalized borrowing costs (21) (9) (61) (26) ---------------------------------------------------------------------------- Investments in associates and joint ventures - - - (10) ---------------------------------------------------------------------------- Purchase of investments (23) (7) (171) (14) ---------------------------------------------------------------------------- Proceeds from disposal of investments 17 - 82 - ---------------------------------------------------------------------------- Other 53 (8) - (56) ---------------------------------------------------------------------------- Net changes in non-cash working capital (25) (17) 28 43 ---------------------------------------------------------------------------- Cash used in investing activities (227) (2,380) (681) (3,302) ---------------------------------------------------------------------------- Financing ---------------------------------------------------------------------------- Short-term debt (20) 703 (511) 1,098 ---------------------------------------------------------------------------- Long-term debt issued - 500 1,010 521 ---------------------------------------------------------------------------- Transaction costs on long-term debt - (4) (14) (5) ---------------------------------------------------------------------------- Repayment of long-term debt (2) (5) (522) (12) ---------------------------------------------------------------------------- Dividends paid (110) - (334) (115) ---------------------------------------------------------------------------- Shares issued - - 2 7 ---------------------------------------------------------------------------- Shares repurchased (265) (913) (498) (913) ---------------------------------------------------------------------------- Cash (used in) provided by financing activities (397) 281 (867) 581 ---------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents (2) (13) (24) 37 ---------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents from continuing operations 595 (1,153) 195 (614) ---------------------------------------------------------------------------- Cash and cash equivalents used in discontinued operations (49) (1) (52) (15) ---------------------------------------------------------------------------- Cash and cash equivalents - beginning of period 255 1,812 658 1,287 ---------------------------------------------------------------------------- Cash and cash equivalents - end of period 801 658 801 658 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations. AGRIUM INC. Consolidated Balance Sheets (Millions of U.S. dollars) (Unaudited) December 31, ---------------------------------------------------------------------------- 2013 2012 (1) ---------------------------------------------------------------------------- Assets ---------------------------------------------------------------------------- Current assets ---------------------------------------------------------------------------- Cash and cash equivalents 801 658 ---------------------------------------------------------------------------- Accounts receivable 2,105 2,224 ---------------------------------------------------------------------------- Income taxes receivable 78 32 ---------------------------------------------------------------------------- Inventories 3,413 3,094 ---------------------------------------------------------------------------- Advance on acquisition of Viterra Inc. - 1,792 ---------------------------------------------------------------------------- Prepaid expenses and deposits 805 740 ---------------------------------------------------------------------------- Other current assets 104 - ---------------------------------------------------------------------------- Assets held for sale 202 - ---------------------------------------------------------------------------- 7,508 8,540 ---------------------------------------------------------------------------- Property, plant and equipment 4,960 3,484 ---------------------------------------------------------------------------- Intangibles 738 636 ---------------------------------------------------------------------------- Goodwill 1,958 2,349 ---------------------------------------------------------------------------- Investments in associates and joint ventures 639 627 ---------------------------------------------------------------------------- Other assets 99 99 ---------------------------------------------------------------------------- Deferred income tax assets 75 70 ---------------------------------------------------------------------------- 15,977 15,805 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Liabilities and shareholders' equity ---------------------------------------------------------------------------- Current liabilities ---------------------------------------------------------------------------- Short-term debt 764 1,314 ---------------------------------------------------------------------------- Accounts payable 3,985 3,479 ---------------------------------------------------------------------------- Income taxes payable 2 137 ---------------------------------------------------------------------------- Current portion of long-term debt 58 518 ---------------------------------------------------------------------------- Current portion of other provisions 112 108 ---------------------------------------------------------------------------- Liabilities held for sale 44 - ---------------------------------------------------------------------------- 4,965 5,556 ---------------------------------------------------------------------------- Long-term debt 3,066 2,069 ---------------------------------------------------------------------------- Post-employment benefits 135 184 ---------------------------------------------------------------------------- Other provisions 426 413 ---------------------------------------------------------------------------- Other liabilities 59 79 ---------------------------------------------------------------------------- Deferred income tax liabilities 530 584 ---------------------------------------------------------------------------- 9,181 8,885 ---------------------------------------------------------------------------- Shareholders' equity ---------------------------------------------------------------------------- Share capital 1,820 1,890 ---------------------------------------------------------------------------- Retained earnings 5,253 4,955 ---------------------------------------------------------------------------- Accumulated other comprehensive (loss) income (279) 71 ---------------------------------------------------------------------------- Equity holders of Agrium 6,794 6,916 ---------------------------------------------------------------------------- Non-controlling interest 2 4 ---------------------------------------------------------------------------- Total equity 6,796 6,920 ---------------------------------------------------------------------------- 15,977 15,805 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures. AGRIUM INC. Consolidated Statements of Shareholders' Equity (Millions of U.S. dollars, except share data) (Unaudited) Other comprehensive income -------------------------- Available Millions for sale Foreign of common Share Retained financial currency shares capital earnings instruments translation ---------------------------------------------------------------------------- December 31, 2011 158 1,994 4,420 (1) 11 ---------------------------------------------------------------------------- Net earnings - - 1,494 - - ---------------------------------------------------------------------------- Other comprehensive income (loss), net of tax ---------------------------------------------------------------------------- Post-employment benefits - - (5) - - ---------------------------------------------------------------------------- Other - - - 1 63 ---------------------------------------------------------------------------- Comprehensive income (loss), net of tax - - 1,489 1 63 ---------------------------------------------------------------------------- Dividends - - (154) - - ---------------------------------------------------------------------------- Non-controlling interest transactions - - - - - ---------------------------------------------------------------------------- Shares repurchased (9) (113) (800) - - ---------------------------------------------------------------------------- Share-based payment transactions - 9 - - - ---------------------------------------------------------------------------- December 31, 2012 149 1,890 4,955 - 74 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net earnings - - 1,062 - - ---------------------------------------------------------------------------- Other comprehensive income (loss), net of tax ---------------------------------------------------------------------------- Post-employment benefits - - 31 - - ---------------------------------------------------------------------------- Other - - - (8) (338) ---------------------------------------------------------------------------- Comprehensive income (loss), net of tax - - 1,093 (8) (338) ---------------------------------------------------------------------------- Dividends - - (367) - - ---------------------------------------------------------------------------- Non-controlling interest transactions - - (2) - - ---------------------------------------------------------------------------- Shares repurchased (5) (72) (426) - - ---------------------------------------------------------------------------- Share-based payment transactions - 2 - - - ---------------------------------------------------------------------------- December 31, 2013 144 1,820 5,253 (8) (264) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AGRIUM INC. Consolidated Statements of Shareholders' Equity (Millions of U.S. dollars, except share data) (Unaudited) Other comprehensive income ------------------------- Comprehensive loss of associates Equity Non- and joint holders controlling Total ventures Total of Agrium interest equity ---------------------------------------------------------------------------- December 31, 2011 - 10 6,424 4 6,428 ---------------------------------------------------------------------------- Net earnings - - 1,494 4 1,498 ---------------------------------------------------------------------------- Other comprehensive income (loss), net of tax ---------------------------------------------------------------------------- Post-employment benefits - - (5) - (5) ---------------------------------------------------------------------------- Other (3) 61 61 - 61 ---------------------------------------------------------------------------- Comprehensive income (loss), net of tax (3) 61 1,550 4 1,554 ---------------------------------------------------------------------------- Dividends - - (154) - (154) ---------------------------------------------------------------------------- Non-controlling interest transactions - - - (4) (4) ---------------------------------------------------------------------------- Shares repurchased - - (913) - (913) ---------------------------------------------------------------------------- Share-based payment transactions - - 9 - 9 ---------------------------------------------------------------------------- December 31, 2012 (3) 71 6,916 4 6,920 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net earnings - - 1,062 1 1,063 ---------------------------------------------------------------------------- Other comprehensive income (loss), net of tax ---------------------------------------------------------------------------- Post-employment benefits - - 31 - 31 ---------------------------------------------------------------------------- Other (4) (350) (350) (2) (352) ---------------------------------------------------------------------------- Comprehensive income (loss), net of tax (4) (350) 743 (1) 742 ---------------------------------------------------------------------------- Dividends - - (367) - (367) ---------------------------------------------------------------------------- Non-controlling interest transactions - - (2) (1) (3) ---------------------------------------------------------------------------- Shares repurchased - - (498) - (498) ---------------------------------------------------------------------------- Share-based payment transactions - - 2 - 2 ---------------------------------------------------------------------------- December 31, 2013 (7) (279) 6,794 2 6,796 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AGRIUM INC. Supplemental Information 1a Results by Segment (Millions of U.S. dollars) (Unaudited) Three months ended December 31, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Advanced Retail Wholesale Technologies(1) Other Total ---------------------------------------------------------------------------- Sales - external 2,099 711 57 - 2,867 - inter-segment 3 252 10 (265) - ---------------------------------------------------------------------------- Total sales 2,102 963 67 (265) 2,867 Cost of product sold 1,516 793 65 (247) 2,127 ---------------------------------------------------------------------------- Gross profit 586 170 2 (18) 740 ---------------------------------------------------------------------------- Gross profit (%) 28 18 3 26 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Selling 504 11 1 (5) 511 General and administrative 31 15 3 67 116 Earnings from associates and joint ventures (2) (27) - - (29) Purchase gain (257) - - - (257) Goodwill impairment 220 - - - 220 Other (income) expenses (33) 11 (1) 19 (4) ---------------------------------------------------------------------------- EBIT (2) 123 160 (1) (99) 183 EBITDA (3) 195 210 3 (94) 314 Adjusted EBITDA (3) 195 234 3 (94) 338 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three months ended December 31, ---------------------------------------------------------------------------- 2012 (4) ---------------------------------------------------------------------------- Advanced Retail Wholesale Technologies(1) Other Total ---------------------------------------------------------------------------- Sales - external 1,971 1,058 64 - 3,093 - inter-segment 4 215 13 (232) - ---------------------------------------------------------------------------- Total sales 1,975 1,273 77 (232) 3,093 Cost of product sold 1,466 820 54 (221) 2,119 ---------------------------------------------------------------------------- Gross profit 509 453 23 (11) 974 ---------------------------------------------------------------------------- Gross profit (%) 26 36 30 31 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Selling 431 11 1 (5) 438 General and administrative 33 10 6 - 49 Earnings from associates and joint ventures (2) (20) - - (22) Other (income) expenses (28) 5 1 2 (20) ---------------------------------------------------------------------------- EBIT (2) 75 447 15 (8) 529 EBITDA (3) 124 495 18 (2) 635 Adjusted EBITDA (3) 124 516 18 (2) 656 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Reflects the results of Environmentally Smart Nitrogen ("ESN") and Micronutrients businesses only. These results will be reflected in the Wholesale segment in subsequent disclosures. (2) Earnings (loss) from continuing operations before finance costs and income taxes. (3) Certain measures presented in this table are not recognized measures under IFRS. Refer to Supplemental Information 6. (4) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations. AGRIUM INC. Supplemental Information 1b Results by Segment (Millions of U.S. dollars) (Unaudited) Twelve months ended December 31, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Advanced Technologies Retail Wholesale (1) Other Total ---------------------------------------------------------------------------- Sales - external 11,896 3,612 219 - 15,727 - inter-segment 17 727 44 (788) - ---------------------------------------------------------------------------- Total sales 11,913 4,339 263 (788) 15,727 Cost of product sold 9,298 3,232 228 (804) 11,954 ---------------------------------------------------------------------------- Gross profit 2,615 1,107 35 16 3,773 ---------------------------------------------------------------------------- Gross profit (%) 22 26 13 24 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Selling 1,847 39 4 (14) 1,876 General and administrative 116 65 16 132 329 (Earnings) loss from associates and joint ventures (9) (61) 1 1 (68) Purchase gain (257) - - - (257) Goodwill impairment 220 - - - 220 Other (income) expenses (50) 33 - 60 43 ---------------------------------------------------------------------------- EBIT (2) 748 1,031 14 (163) 1,630 EBITDA (3) 986 1,232 30 (146) 2,102 Adjusted EBITDA (3) 986 1,286 30 (146) 2,156 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Twelve months ended December 31, ---------------------------------------------------------------------------- 2012 (4) ---------------------------------------------------------------------------- Advanced Technologies Retail Wholesale (1) Other Total ---------------------------------------------------------------------------- Sales - external 11,457 4,368 199 - 16,024 - inter-segment 22 690 65 (777) - ---------------------------------------------------------------------------- Total sales 11,479 5,058 264 (777) 16,024 Cost of product sold 9,001 3,308 197 (790) 11,716 ---------------------------------------------------------------------------- Gross profit 2,478 1,750 67 13 4,308 ---------------------------------------------------------------------------- Gross profit (%) 22 35 25 27 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Selling 1,669 38 3 (13) 1,697 General and administrative 122 42 19 245 428 Earnings from associates and joint ventures (9) (80) (2) - (91) Other (income) expenses (61) 57 2 60 58 ---------------------------------------------------------------------------- EBIT (2) 757 1,693 45 (279) 2,216 EBITDA (3) 951 1,883 58 (263) 2,629 Adjusted EBITDA (3) 951 1,940 58 (263) 2,686 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Reflects the results of ESN and Micronutrients businesses only. These results will be reflected in the Wholesale segment in subsequent disclosures. (2) Earnings (loss) from continuing operations before finance costs and income taxes. (3) Certain measures presented in this table are not recognized measures under IFRS. Refer to Supplemental Information 6. (4) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations. AGRIUM INC. Supplemental Information 2 Product Lines (Millions of U.S. dollars) (Unaudited) Three months ended December 31, --------------------------------------------------------------------------- 2013 2012 (4) -------------------------------------------------- ------------------------ Cost of Cost of product Gross product Gross Sales sold (1) profit Sales sold (1) profit -------------------------------------------------- ------------------------ Retail (2) Crop nutrients 1,052 874 178 1,096 941 155 Crop protection products 511 306 205 491 288 203 Seed 95 35 60 105 62 43 Merchandise 228 198 30 132 111 21 Services and other 216 103 113 151 64 87 -------------------------------------------------- ------------------------ 2,102 1,516 586 1,975 1,466 509 -------------------------------------------------- ------------------------ Wholesale Nitrogen 415 286 129 544 251 293 Potash 107 68 39 153 74 79 Phosphate 159 163 (4) 201 154 47 Product purchased for resale 240 246 (6) 310 302 8 Ammonium sulfate and other 42 30 12 65 39 26 -------------------------------------------------- ------------------------ 963 793 170 1,273 820 453 -------------------------------------------------- ------------------------ Advanced Technologies (3) 67 65 2 77 54 23 -------------------------------------------------- ------------------------ Other inter-segment eliminations (265) (247) (18) (232) (221) (11) -------------------------------------------------- ------------------------ Total 2,867 2,127 740 3,093 2,119 974 -------------------------------------------------- ------------------------ -------------------------------------------------- ------------------------ Wholesale equity accounted joint ventures: Nitrogen 72 49 23 79 46 33 Product purchased for resale 35 32 3 34 30 4 -------------------------------------------------- ------------------------ 107 81 26 113 76 37 -------------------------------------------------- ------------------------ Total Wholesale including equity accounted joint ventures 1,070 874 196 1,386 896 490 -------------------------------------------------- ------------------------ -------------------------------------------------- ------------------------ AGRIUM INC. Supplemental Information 2 Product Lines (Millions of U.S. dollars) (Unaudited) Twelve months ended December 31, -------------------------------------------------------------------------- 2013 2012 (4) ------------------------------------------------- ------------------------ Cost of Cost of product Gross product Gross Sales sold (1) profit Sales sold (1) profit ------------------------------------------------- ------------------------ Retail (2) Crop nutrients 4,993 4,154 839 5,124 4,303 821 Crop protection products 4,204 3,217 987 3,924 2,996 928 Seed 1,258 984 274 1,189 949 240 Merchandise 612 518 94 524 431 93 Services and other 846 425 421 718 322 396 ------------------------------------------------- ------------------------ 11,913 9,298 2,615 11,479 9,001 2,478 ------------------------------------------------- ------------------------ Wholesale Nitrogen 1,724 1,052 672 2,012 937 1,075 Potash 564 294 270 618 276 342 Phosphate 654 587 67 797 598 199 Product purchased for resale 1,131 1,122 9 1,347 1,316 31 Ammonium sulfate and other 266 177 89 284 181 103 ------------------------------------------------- ------------------------ 4,339 3,232 1,107 5,058 3,308 1,750 ------------------------------------------------- ------------------------ Advanced Technologies (3) 263 228 35 264 197 67 ------------------------------------------------- ------------------------ Other inter-segment eliminations (788) (804) 16 (777) (790) 13 ------------------------------------------------- ------------------------ Total 15,727 11,954 3,773 16,024 11,716 4,308 ------------------------------------------------- ------------------------ ------------------------------------------------- ------------------------ Wholesale equity accounted joint ventures: Nitrogen 234 173 61 286 166 120 Product purchased for resale 119 111 8 108 98 10 ------------------------------------------------- ------------------------ 353 284 69 394 264 130 ------------------------------------------------- ------------------------ Total Wholesale including equity accounted joint ventures 4,692 3,516 1,176 5,452 3,572 1,880 ------------------------------------------------- ------------------------ ------------------------------------------------- ------------------------ (1) Includes depreciation and amortization. (2) International Retail sales were $559-million (2012 - $519-million) and gross profit was $125-million (2012 - $109-million) for the three months ended December 31. International Retail sales were $2,584-million (2012 - $2,482-million) and gross profit was $461-million (2012 - $456-million) for the twelve months ended December 31. (3) Reflects the results of ESN and Micronutrients businesses only. These results will be reflected in the Wholesale segment in subsequent disclosures. (4) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations. AGRIUM INC. Supplemental Information 3a Selected Volumes and Sales Prices (Unaudited) Three months ended December 31, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Cost of Sales Selling product tonnes price sold Margin (000's) ($/tonne) ($/tonne) ($/tonne) ---------------------------------------------------------------------------- Retail Crop nutrients North America 1,590 548 International 364 500 --------------------------------------------- Total crop nutrients 1,954 539 447 92 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale Nitrogen North America Ammonia 383 561 Urea 337 410 Other 187 331 ---------------------------------------------------------------------------- Total nitrogen 907 458 314 144 ---------------------------------------------------------------------------- Potash North America 255 353 International 89 199 ---------------------------------------------------------------------------- Total potash 344 313 201 112 ---------------------------------------------------------------------------- Phosphate 285 560 576 (16) Product purchased for resale 648 370 379 (9) Ammonium sulfate 81 303 182 121 Other 43 ---------------------------------------------------------------------------- Total Wholesale 2,308 417 343 74 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen International 180 400 272 128 Product purchased for resale 86 407 372 35 ---------------------------------------------------------------------------- 266 402 304 98 ---------------------------------------------------------------------------- Total Wholesale including equity accounted joint ventures 2,574 416 340 76 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AGRIUM INC. Supplemental Information 3a Selected Volumes and Sales Prices (Unaudited) Three months ended December 31, --------------------------------------------------------------------------- 2012 (1) --------------------------------------------------------------------------- Cost of Sales Selling product tonnes price sold Margin (000's) ($/tonne) ($/tonne) ($/tonne) --------------------------------------------------------------------------- Retail Crop nutrients North America 1,355 669 International 327 578 -------------------------------------------- Total crop nutrients 1,682 651 560 91 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Wholesale Nitrogen North America Ammonia 328 677 Urea 431 558 Other 207 383 --------------------------------------------------------------------------- Total nitrogen 966 561 257 304 --------------------------------------------------------------------------- Potash North America 255 491 International 86 326 --------------------------------------------------------------------------- Total potash 341 449 216 233 --------------------------------------------------------------------------- Phosphate 279 722 556 166 Product purchased for resale 646 481 468 13 Ammonium sulfate 83 432 172 260 Other 62 --------------------------------------------------------------------------- Total Wholesale 2,377 536 345 191 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen International 157 502 279 223 Product purchased for resale 79 429 379 50 --------------------------------------------------------------------------- 236 480 324 156 --------------------------------------------------------------------------- Total Wholesale including equity accounted joint ventures 2,613 530 342 188 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures. AGRIUM INC. Supplemental Information 3b Selected Volumes and Sales Prices (Unaudited) Twelve months ended December 31, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Cost of Sales Selling product tonnes price sold Margin (000's) ($/tonne) ($/tonne) ($/tonne) ---------------------------------------------------------------------------- Retail Crop nutrients North America 6,812 591 International 1,806 535 ------------------------------------------------------------------------ Total crop nutrients 8,618 579 482 97 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale Nitrogen North America Ammonia 1,219 627 Urea 1,270 490 Other 903 374 ---------------------------------------------------------------------------- Total nitrogen 3,392 508 310 198 ---------------------------------------------------------------------------- Potash North America 877 421 International 654 298 ---------------------------------------------------------------------------- Total potash 1,531 369 193 176 ---------------------------------------------------------------------------- Phosphate 1,026 638 573 65 Product purchased for resale 2,687 421 418 3 Ammonium sulfate 328 383 191 192 Other 285 ---------------------------------------------------------------------------- Total Wholesale 9,249 469 349 120 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen International 540 433 320 113 Product purchased for resale 304 392 365 27 ---------------------------------------------------------------------------- 844 418 336 82 ---------------------------------------------------------------------------- Total Wholesale including equity accounted joint ventures 10,093 465 348 117 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AGRIUM INC. Supplemental Information 3b Selected Volumes and Sales Prices (Unaudited) Twelve months ended December 31, ------------------------------------------------------------------------- 2012 (1) ------------------------------------------------------------------------- Cost of Sales Selling product tonnes price sold Margin (000's) ($/tonne) ($/tonne) ($/tonne) ------------------------------------------------------------------------- Retail Crop nutrients North America 6,622 634 International 1,535 605 --------------------------------------------------------------------- Total crop nutrients 8,157 628 527 101 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Wholesale Nitrogen North America Ammonia 1,188 627 Urea 1,511 581 Other 1,030 377 ------------------------------------------------------------------------- Total nitrogen 3,729 539 251 288 ------------------------------------------------------------------------- Potash North America 819 534 International 473 383 ------------------------------------------------------------------------- Total potash 1,292 479 214 265 ------------------------------------------------------------------------- Phosphate 1,095 728 547 181 Product purchased for resale 2,930 460 449 11 Ammonium sulfate 327 423 203 220 Other 292 ------------------------------------------------------------------------- Total Wholesale 9,665 523 342 181 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen International 556 514 298 216 Product purchased for resale 264 411 373 38 ------------------------------------------------------------------------- 820 481 322 159 ------------------------------------------------------------------------- Total Wholesale including equity accounted joint ventures 10,485 520 341 179 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures. AGRIUM INC. Supplemental Information 4 Depreciation and Amortization (Millions of U.S. dollars) (Unaudited) Three months ended December 31, --------------------------------------------------------------------------- 2013 --------------------------------------------------------------------------- Cost of product General and sold Selling administrative Total --------------------------------------------------------------------------- Retail 1 68 3 72 Wholesale Nitrogen 25 Potash 11 Phosphate 12 Ammonium sulfate and other 2 --------------------------------------------------------------------------- 50 - - 50 Advanced Technologies (1) 3 - 1 4 Other - - 5 5 --------------------------------------------------------------------------- Total 54 68 9 131 --------------------------------------------------------------------------- --------------------------------------------------------------------------- AGRIUM INC. Supplemental Information 4 Depreciation and Amortization (Millions of U.S. dollars) (Unaudited) Three months ended December 31, ------------------------------------------------------------------------- 2012 (2) ------------------------------------------------------------------------- Cost of product General and sold Selling administrative Total ------------------------------------------------------------------------- Retail 3 44 2 49 Wholesale Nitrogen 15 Potash 11 Phosphate 21 Ammonium sulfate and other 1 ------------------------------------------------------------------------- 48 - - 48 Advanced Technologies (1) 3 - - 3 Other - - 6 6 ------------------------------------------------------------------------- Total 54 44 8 106 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Twelve months ended December 31, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Cost of General product and sold Selling administrative Total ---------------------------------------------------------------------------- Retail 5 222 11 238 Wholesale Nitrogen 77 Potash 50 Phosphate 53 Product purchased for resale 1 Ammonium sulfate and other 6 ---------------------------------------------------------------------------- 187 - 14 201 Advanced Technologies (1) 13 - 3 16 Other - - 17 17 ---------------------------------------------------------------------------- Total 205 222 45 472 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Twelve months ended December 31, ------------------------------------------------------------------------ 2012 (2) ------------------------------------------------------------------------ Cost of General product and sold Selling administrative Total ------------------------------------------------------------------------ Retail 7 169 18 194 Wholesale Nitrogen 61 Potash 41 Phosphate 77 Product purchased for resale 1 Ammonium sulfate and other 5 ------------------------------------------------------------------------ 185 - 5 190 Advanced Technologies (1) 10 - 3 13 Other - - 16 16 ------------------------------------------------------------------------ Total 202 169 42 413 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (1) Reflects the results of ESN and Micronutrients businesses only. These results will be reflected in the Wholesale segment in subsequent disclosures. (2) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations. AGRIUM INC. Supplemental Information 5 (1) Selected Financial Measures (Millions of U.S. dollars, unless stated otherwise) (Unaudited) Rolling four quarters ended December 31, ---------------------------------------------------------------------------- 2013 2012 ---------------------------------------------------- ---------------------- Consolidated Consolidated Retail Agrium Retail Agrium (2) ---------------------------------------------------- ----------------------- Return on operating capital employed (%) (3a) 17 15 18 26 Return on capital employed (%) (3b) 9 11 9 17 Average non-cash working capital to sales (%) 20 17 20 16 Operating coverage ratio (%) (3c) 71 57 69 49 EBITDA to sales (%) (3d) 8 13 8 16 December 31, ---------------------------------------------------------------------------- 2013 2012 ---------------------------------------------------- ----------------------- Consolidated Consolidated Retail Agrium Retail Agrium (2) ---------------------------------------------------- ----------------------- Non-cash working capital 2,083 2,302 2,067 2,366 Twelve months ended December 31, ---------------------------------------------------------------------------- 2013 2012 --------------------------------------- -------- Retail Retail --------------------------------------- -------- Comparable store sales (%) (2) 8 Normalized comparable store sales (%) 5 8 North America measures Rolling four quarters ended December 31, ---------------------------------------------------------------------------- 2013 2012 --------------------------------------- -------- Retail Retail --------------------------------------- -------- Return on operating capital employed (%) (3a) 28 23 Return on capital employed (%) (3b) 14 11 EBITDA to sales (%) (3d) 12 10 (1) Certain measures presented in this table are not recognized measures under IFRS. Refer to Supplemental Information 6. (2) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures and reclassifications resulting from discontinued operations. (3) Adjusted 2013 amounts removing the impact of the purchase gain and goodwill impairment. (a) Retail 16%, Retail - North America 20%, Consolidated Agrium 15%. (b) Retail 9%, Retail - North America 10%, Consolidated Agrium 11%. (c) Retail 73%, Consolidated Agrium 58%. (d) Retail 8%, Retail - North America 9%, Consolidated Agrium 13%. AGRIUM INC. Supplemental Information 6 (1) Accompanying Notes to Supplemental Information ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- IFRS Financial Measure Definition ---------------------------------------------------------------------------- Average non-cash working Rolling four quarter average non-cash working capital to sales (2) capital divided by sales. Operating coverage ratio Gross profit less earnings (loss) from continuing (2) operations before finance costs and income taxes, divided by gross profit. Non-cash working capital Current assets less current liabilities, excluding (2) cash and cash equivalents, advance on acquisition of Viterra Inc., other current assets, short-term debt, current portion of long-term debt and current assets and liabilities held for sale. ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Definition Usefulness of Additional or Non-IFRS Financial Measure ---------------------------------------------------------------------------- Additional IFRS Financial Measure (As defined in Canadian Securities Administrators' Staff Notice 52-306 (Revised)) ---------------------------------------------------------------------------- EBIT Earnings (loss) from Used to measure continuing operations operating performance before finance costs and exclusive of capital income taxes structure and income taxes Return on operating Last 12 months' EBIT Used to measure capital employed (2) less income taxes at a operating performance tax rate of 27 percent and efficiency of our (2012 - 28 percent) capital allocation divided by rolling four process. quarter average operating capital employed. Operating capital employed includes non-cash working capital, property, plant and equipment, investments in associates and joint ventures and other assets. Return on capital Last 12 months' EBIT Used to measure employed (2) less income taxes at a operating performance tax rate of 27 percent and efficiency of our (2012 - 28 percent) capital allocation divided by rolling four process. quarter average capital employed. Capital employed includes operating capital employed, intangibles and goodwill. ---------------------------------------------------------------------------- Non-IFRS Financial Measure ---------------------------------------------------------------------------- EBITDA Earnings (loss) from Refer to EBIT. Also used continuing operations as a valuation metric before finance costs, and as an alternative to income taxes, cash provided by depreciation and operating activities. amortization. Adjusted EBITDA Earnings (loss) from Refer to EBIT and continuing operations EBITDA. Provides useful before finance costs, information on our income taxes, profitability by adding depreciation and back finance costs, amortization and before income taxes, finance costs, income depreciation and taxes, depreciation and amortization of joint amortization of joint ventures. ventures. EBITDA to sales Earnings (loss) from Used to measure continuing operations operating performance before finance costs, earnings and cash flow income taxes, we generate from each depreciation and dollar of sales. amortization divided by sales. Comparable store sales We include a location in Used to measure the the comparable store performance of our base once it is in existing stores by operation or owned for measuring the change in over 12 months. If we sales for such stores close a store, we retain over the comparable the sales of the closed period location in the comparable store base if the closed location is in close geographical proximity to an existing location, unless we plan to exit the market area or are unable to economically or logistically serve it. We do not make adjustments for temporary closures, expansions or renovations of stores. Normalized comparable Comparable store sales Used to measure the store sales normalized by using performance of our published nitrogen, existing stores by phosphate and potash measuring the change in ("NPK") benchmark prices sales for such stores and adjusting current over the comparable year prices to reflect period pricing from the previous year based on our percent of NPK utilization by product. ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Our definitions and our method of calculation for these measures may not be directly comparable to similar measures presented by other companies. (2) These measures are IFRS measures or additional IFRS measures when calculated using information included in our consolidated financial statements. They are classified as non-IFRS measures when calculated using information from our Retail segment because the specific components are not included in our financial statements or notes. FOR FURTHER INFORMATION PLEASE CONTACT: Agrium Inc. Investor/Media Relations: Richard Downey Vice President, Investor & Corporate Relations (403) 225-7357 Agrium Inc.Todd Coakwell Director, Investor Relations (403) 225-7437 Agrium Inc.Louis Brown Analyst, Investor Relations (403) 225-7761 www.agrium.com Source: Agrium Inc.


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