Payments to Governments

Transcription

1 Payments to Governments

2 s nments Places where we make Payments to Governments On January 1, 2018, after receiving all required regulatory approvals, Potash Corporation of Saskatchewan Inc. (PotashCorp) and Agrium Inc. (Agrium) combined their CANADA Alberta Manitoba businesses in a merger of equals by becoming wholly owned subsidiaries of Nutrien, the world s largest provider Saskatchewan North Dakota Washington Oregon Idaho of crop inputs and services. We play a critical role in helping Minnesota Michigan UNITED STATES OF AMERICA Nebraska Colorado Kansas California Kentucky Tennessee Mississippi SWITZERLAND other stakeholders about achieving a balance between Illinois Ohio Indiana Missouri growers increase food production in a sustainable manner. Nutrien continuously engages with governments and New York Iowa Arkansas Texas New Brunswick encouraging investment to create jobs and paying appropriate and competitive taxes, royalties and fees. North Carolina Georgia The highlighted parts of the map are where payments were Louisiana made to governments1 in Florida Not included are consumption taxes and payments, at prices reflective of market values, to state-owned enterprises for services, such as utilities, used in our operations or amounts below $1 million US. TRINIDAD 1 All countries, provinces, states, counties, parishes and towns 2 Payments to Federal governments (and sub-national governments outside of North America) Excluding payments to governments made by our non-wholly owned investees (MOPCO, Profertil, SQM, ICL, APC, Sinofert, Canpotex and others) Significant payments to provincial and state governments No payments to governments > $1 million US BRAZIL AUSTRALIA CHILE ARGENTINA

3 Scope of report on Payments to Governments Both PotashCorp and Agrium have prepared reports in the accompanying pages to comply with the requirements of the Extractive Sector Transparency Measures Act (ESTMA) in for the year ended December 31, Readers are cautioned these payments relate only to the commercial development of oil, gas or minerals, including exploration or extraction as defined by ESTMA. The following table shows the various parts of Nutrien s business. The shaded area represents activities scoped into the reporting requirements of ESTMA. The unshaded areas represent other business activities where payments are made to governments outside the scope of ESTMA. R RETAIL K POTASH Segment Activities P PHOSPHATE AND SULFATE N NITROGEN CORPORATE ACTIVITIES Other NON-CONTROLLED INVESTEES All retail locations and activities Potash mining and raw ore processing (Allan, Cory, Lanigan, New Brunswick, Patience Lake, Rocanville and Vanscoy) ESTMA IN SCOPE (cash basis) Phosphate mining and raw ore processing into phosphate rock (Aurora, Conda and White Springs) All nitrogen locations and activities Selling, general and administrative and other activities at the corporate offices Equity-accounted investees (Canpotex, MOPCO, Profertil, other equity-accounted associates and joint ventures where we are not the operator) Salt mining and initial processing (New Brunswick) Limestone mining and raw ore processing into calcium (Weeping Water) FVTOCI 1 investees (Sinofert, other) Held for sale investees (APC, ICL, SQM) Transportation and distribution Sales Processing of phosphate rock into downstream products (Aurora, White Springs, Geismar, Redwater and Feed Plants) Transportation and distribution Sales 1 Fair value through other comprehensive income Additional information on PotashCorp s and Agrium s income taxes as determined under IFRS, can be found on pages 72 to 75 and 60 in each legacy company s respective 2017 Annual Report.

4 Extractive Sector Transparency Measures Act - Annual Report Potash Corporation of Saskatchewan Inc. Reporting Year From 1/1/2017 To: 12/31/2017 Date submitted 5/30/2018 Reporting Entity ESTMA Identification Number Other Subsidiaries Included (optional field) E Original Submission Amended Report N/A Not Consolidated Not Substituted Attestation by Reporting Entity In accordance with the requirements of the ESTMA, and in particular section 9 thereof, I attest I have reviewed the information contained in the ESTMA report for the entity(ies) listed above. Based on my knowledge, and having exercised reasonable diligence, the information in the ESTMA report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year listed above. Full Name of Director or Officer of Reporting Entity Position Title Wayne Brownlee Executive Vice President, Treasurer and Chief Financial Officer Date 5/30/2018

5 Reporting Year From: 1/1/2017 To: 12/31/2017 Potash Corporation of Saskatchewan Inc. Reporting Entity ESTMA Identification Number E Subsidiary Reporting Entities (if necessary) Country Payee Name Departments, Agency, etc within Payee that Received Payments Currency of the Report Taxes Royalties Fees Production Entitlements Bonuses Dividends Infrastructure Improvement Payments Total Amount paid to Payee Government of Receiver General for 15,430,000-30,000 15,460,000 Federal income tax and fees Ministry of the Economy Government of Saskatchewan Minister of Finance Potash production tax, resource Saskatchewan Power 143,000,000 29,750,000 1,650,000 30, ,430,000 surcharge, royalties, mineral lease Corporation fees, acreage tax and other fees Technical Safety Authority of Saskatchewan Government of New Brunswick Rural Municipality of Rocanville No. 151 SK Rural Municipality of Usborne No. 310 SK Rural Municipality of Corman Park No. 344 SK Rural Municipality of Blucher No. 343 SK Rural Municipality of Vanscoy No. 345 SK Government of the United States of America State of Florida State of North Carolina Minister of Finance New Brunswick Energy & Utilities Board Municipal tax, royalties, mineral lease 2,760, , ,000 3,170,000 fees and other fees 7,420, ,420,000 Municipal tax 4,860, ,860,000 Municipal tax 4,280, ,280,000 Municipal tax 4,200, ,200,000 Municipal tax 190, ,000 Municipal tax Department of Treasury 7,090, ,090,000 Federal income tax Department of Department of Environmental Protection Department of Division of Air Quality Division of Water Quality Division of Energy, Mineral and Land Resources Department of Environmental Quality Extractive Sector Transparency Measures Act - Annual Report Payments by Payee 3,620,000-80, ,700,000 Severance tax, state tax and fees 1,120, , ,410,000 Franchise tax and fees State of Tennessee Department of 170, ,000 Franchise tax State of Georgia Department of 80, ,000 State and franchise taxes Beaufort County NC 6,370, ,370,000 Property tax Hamilton County FL 5,290, , ,400,000 Property tax and fees Cass County NE 100, ,000 Property tax USD Notes1 Additional Notes 1 : This report is presented in United States dollars ( US dollars ), which was determined to be the functional currency of the company and the majority of its subsidiaries. Payments made to Canadian payees in Canadian dollars were converted at the exchange rate existing at the time of the payment, approximated using the average exchange rate for the month prior to the item being recorded. The average annual exchange rate to convert payments incurred in Canadian dollars to US dollars was

6 Extractive Sector Transparency Measures Act - Annual Report Reporting Year From: 1/1/2017 To: 12/31/2017 Potash Corporation of Saskatchewan Inc. Reporting Entity ESTMA Identification Number E Subsidiary Reporting Entities (if necessary) Payments by Project Currency of the Report USD Country Project Name Taxes Royalties Fees Production Entitlements Bonuses Dividends Infrastructure Improvement Payments Total Amount paid by Project Notes 1 Rocanville SK 7,460,000 12,360, , ,330,000 Lanigan SK 4,920,000 6,490, , ,740,000 Allan SK 3,250,000 6,730, , ,400,000 Cory SK 4,520,000 3,390, , ,000 8,190,000 New Brunswick 2,760, , , ,180,000 Patience Lake SK 1,000, , , ,940,000 Aurora NC 12,440, , ,730,000 White Springs FL 11,300, , ,490,000 Weeping Water NE 100, ,000 Corporate 158,230, ,230,000 'Taxes' relates to income taxes, potash production tax and resource surcharge not attributable to a specific project and are assessed at the corporate level. Additional Notes 1 : This report is presented in United States dollars ( US dollars ), which was determined to be the functional currency of the company and the majority of its subsidiaries. Payments made to Canadian payees in Canadian dollars were converted at the exchange rate existing at the time of the payment, approximated using the average exchange rate for the month prior to the item being recorded. The average annual exchange rate to convert payments incurred in Canadian dollars to US dollars was

7 Extractive Sector Transparency Measures Act - Annual Report Agrium Inc. Reporting Year From 1/1/2017 To: 12/31/2017 Date submitted 5/30/2018 Reporting Entity ESTMA Identification Number Other Subsidiaries Included (optional field) For Consolidated Reports - Subsidiary Reporting Entities Included in Report: E (Agrium Inc.) Original Submission Amended Report E (Agrium, a general partnership) E (Agrium Potash Ltd.) Not Substituted Attestation by Reporting Entity In accordance with the requirements of the ESTMA, and in particular section 9 thereof, I attest I have reviewed the information contained in the ESTMA report for the entity(ies) listed above. Based on my knowledge, and having exercised reasonable diligence, the information in the ESTMA report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year listed above. Full Name of Director or Officer of Reporting Entity Position Title Fredrick R. Thun Vice President, Finance & Accounting Date 5/30/2018

8 Extractive Sector Transparency Measures Act - Annual Report Reporting Year From: 1/1/2017 To: 12/31/2017 Agrium Inc. Reporting Entity ESTMA Identification Number E (Agrium Inc.) Subsidiary Reporting Entities (if E (Agrium, a general partnership) necessary) E (Agrium Potash Ltd.) Currency of the Report Payments by Payee Taxes Royalties Fees Production Entitlements Bonuses Dividends Country Payee Name 1 within Payee that Received Departments, Agency, etc Payments 2 CAD Infrastructure Improvement Payments Total Amount paid to Payee Notes 34 Agency 6,770, ,770,000 Federal corporate income taxes. Please note we cannot identify and disaggregate the portion of our taxes specifically related to our in-scope projects and therefore have reported income taxes at the payee level. -Alberta -Saskatchewan -Saskatchewan Alberta Treasury Board and Finance Saskatchewan Ministry of Finance Saskatchewan Ministry of Energy and Resources 1,810, ,810,000 20,500,000-1,510,000 22,010,000 Provincial corporate income taxes. Please note we cannot identify and disaggregate the portion of our taxes specifically related to our in-scope projects and therefore have reported income taxes at the payee level. Resource surcharge tax and mineral lease payments on Vanscoy potash mine. 270,000 10,350,000-10,620,000 Royalties on Vanscoy potash mine -Saskatchewan Rural Municipality of Vanscoy 5,980, ,980,000 Property tax on Vanscoy potash mine. Internal Service 24,640, ,640,000 Federal corporate income taxes - $18.98M USD paid translated at an annual average rate of Please note we cannot identify and disaggregate the portion of our taxes specifically related to our in-scope projects and therefore have reported income taxes at the payee level. Office of Natural Resource U.S. Department of the Interior - 3,240,000 80,000 3,320, , ,000 Royalty payments related to exploration and extraction of ores - $2.49M USD paid translated at an annual average rate of Surface lease application fees - $60K USD translated at an annual average rate of Lease payments and other fees paid relating to extraction of ores - $247K USD translated at an annual average rate of Idaho Department of Lands - 370, ,000 Idaho Fish and Game , ,000 Idaho Department of Environmental Quality , ,000 Caribou County 1,150, ,150,000 Royalties related to exploration and extraction of ores - $288K USD translated at an annual average rate of One-time mitigation agreement payment arising from negotiation of new mine - $432K USD translated at an annual average rate of Various reclamation and closure related fees paid - $320K USD translated at an annual average rate of Property tax on Conda mining site - $880K USD paid translated at an annual average rate of NOTE - for state taxes reported below, we cannot separately identify and disaggregate the portion of our taxes specifically related to our in-scope projects and therefore have reported taxes at the payee level. Arizona Department of 290, ,000 State taxes paid - $227K USD translated at an annual average rate of Idaho State Tax Commission 1,950, ,950,000 State taxes paid - $1.50M USD translated at an annual average rate of

9 Reporting Year From: 1/1/2017 To: 12/31/2017 Agrium Inc. Reporting Entity ESTMA Identification Number E (Agrium Inc.) Subsidiary Reporting Entities (if E (Agrium, a general partnership) necessary) E (Agrium Potash Ltd.) Extractive Sector Transparency Measures Act - Annual Report Currency of the Report Payments by Payee Taxes Royalties Fees Production Entitlements Bonuses Dividends Country Payee Name 1 within Payee that Received Departments, Agency, etc Payments 2 Illinois Department of CAD Infrastructure Improvement Payments Total Amount paid to Payee 3,430, ,430,000 Notes 34 State taxes paid - $2.64M USD translated at an annual average rate of Kansas Department of Michigan Department of Treasury Minnesota Department of Nebraska Department of Missouri Department of New York State Department of Taxation and Finance North Dakota Office of State Tax Commissioner Texas Comptroller of Public Accounts California Franchise Tax Board 230, , , ,000 2,520, ,520, , , , , , , , , , ,000 4,760, ,760,000 State taxes paid - $177K USD translated at an annual average rate of State taxes paid - $589K USD translated at an annual average rate of State taxes paid - $1.94M USD translated at an annual average rate of State taxes paid - $137K USD translated at an annual average rate of State taxes paid - $93K USD translated at an annual average rate of State taxes paid - $253K USD translated at an annual average rate of State taxes paid - $107K USD translated at an annual average rate of State taxes paid - $458K USD translated at an annual average rate of State taxes paid - $3.67M USD translated at an annual average rate of Additional Notes: 1 Enter the proper name of the Payee receiving the money (i.e. the municipality of x, the province of y, national government of z). 2 Optional field. 3 When payments are made in-kind, the notes field must highlight which payment includes in-kind contributions and the method for calculating the value of the payment. 4 Any payments made in currencies other than the report currency must be identified. The Reporting Entity may use the Additional notes row or the Notes column to identify any payments that are converted, along with the exchange rate and primary method used for currency conversions.

10 Extractive Sector Transparency Measures Act - Annual Report Reporting Year From: 1/1/2017 To: 12/31/2017 Agrium Inc. Reporting Entity ESTMA Identification Number E (Agrium Inc.) Subsidiary Reporting Entities (if necessary) E (Agrium, a general partnership) E (Agrium Potash Ltd.) Currency of the Report Payments by Project Country Project Name 1 Taxes Royalties Fees Production Entitlements Bonuses Dividends CAD Infrastructure Improvement Payments Total Amount paid by Project Notes 23 -Saskatchewan Vanscoy 6,250,000 10,350, ,000 17,250,000 Taxes - Rural Municipality of Vanscoy $5.98M CAD and Saskachewan Ministry of Energy and Resources $270K CAD. Royalties - Saskachewan Ministry of Energy and Resources $10.35M CAD. Fees - Saskatchewan Ministry of Finance $650K CAD. Taxes - Caribou County $880K USD for Property taxes on Conda site. Royalties paid to: Idaho Department of Lands $288K USD. Office of Natural Resource $2.49M USD. Conda 1,150,000 3,610,000 1,380,000 6,140,000 Fees paid to: Office of Natural Resource $60K USD. U.S. Department of the Interior $247K USD. Idaho Department of Environmental Quality $320K USD. Idaho Fish and Game $432K USD. USD payments were converted at an average rate of Remaining balance was to miscellaneous governments Other 860, ,000 Fees paid to: Saskatchewan Ministry of Finance $860K CAD related to non-operating and inactive legacy site. Taxes paid to: Agrium Inc. 39,940,000 39,940,000 Internal Service $18.98M USD. Various State Taxes $11.79M USD. USD payments were converted at an average rate of Please note we cannot identify and disaggregate the portion of our taxes specifically related to our in-scope projects and therefore have reported income taxes at the payee level. Agrium Inc. 29,080,000 29,080,000 Taxes paid to: Agency $6.77M CAD. Alberta Treasury Board and Finance $1.81M CAD. Saskatchewan Ministry of Finance $20.5M CAD. Please note we cannot identify and disaggregate the portion of our taxes specifically related to our in-scope projects and therefore have reported income taxes at the payee level.

11 Extractive Sector Transparency Measures Act - Annual Report Reporting Year From: 1/1/2017 To: 12/31/2017 Agrium Inc. Reporting Entity ESTMA Identification Number E (Agrium Inc.) Subsidiary Reporting Entities (if necessary) E (Agrium, a general partnership) E (Agrium Potash Ltd.) Currency of the Report Payments by Project Country Project Name 1 Taxes Royalties Fees Production Entitlements Bonuses Dividends CAD Infrastructure Improvement Payments Total Amount paid by Project Notes 23 Additional Notes 3 : 1 Enter the project that the payment is attributed to. Some payments may not be attributable to a specific project, and do not need to be disclosed in the "Payments by Project" table. 2 When payments are made in-kind, the notes field must highlight which payment includes in-kind contributions and the method for calculating the value of the payment. 3 Any payments made in currencies other than the report currency must be identified. The Reporting Entity may use the "Additional Notes" row or the "Notes" column to identify any payments that are converted, along with the exchange rate and primary method used for currency conversions.

12 Any questions on this report can be directed to Corporate Headquarters Suite 500, 122 1st Avenue South Saskatoon, SK S7K 7G3 Phone (306) NUTRIEN.COM Visit us online FACEBOOK.COM/NUTRIEN Find us on Facebook TWITTER.COM/NUTRIEN Follow us on Twitter