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Agrium Reports Second Highest Quarter Results on Record

CALGARY, ALBERTA--(Marketwired - Aug 7, 2013) - ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. ( TSX : AGU ) ( NYSE : AGU ) announced today consolidated net earnings ("net earnings") of $747-million ($5.02 diluted earnings per share) for the second quarter of 2013, compared with net earnings of $860-million in the second quarter of 2012 ($5.44 diluted earnings per share).

The 2013 second quarter results included a pre-tax share-based payments recovery of $30-million ($0.15 diluted earnings per share), pre-tax proxy defense costs of $12-million ($0.06 diluted earnings per share), and a pre-tax loss of $3-million on natural gas and other hedge positions ($0.01 diluted earnings per share). Excluding these items, net earnings would have been $736-million ($4.94 diluted earnings per share).(1)

"Agrium delivered our second highest gross profit of $1.7-billion and quarterly Adjusted EBITDA(2 ) of $1.2-billion due to the strength of our leading position across the crop input value chain. The cold, wet weather experienced in North America this spring resulted in a compressed spring application season and Agrium rose to this challenge by delivering crop input products and services to our customers in a highly efficient manner. This highlights the strength of our production and distribution assets and our ability to deliver significant value to our customers," said Mike Wilson, Agrium President and CEO.

"We expect solid demand for crop inputs in the second half of 2013 given positive grower sentiment, strong nutrient removal this year and the affordability of crop nutrients," added Mr. Wilson.

As of July 31, 2013, we have purchased approximately 2 million shares at an average price of approximately $88 per share for total consideration of approximately $179-million under our normal course issuer bid ("NCIB"). Under the NCIB entered into on May 14, 2013, we may purchase for cancellation up to approximately 7.5 million of our currently issued and outstanding common shares until May 20, 2014. The actual number of shares purchased will be at Agrium's discretion and will depend on market conditions, share prices, Agrium's cash position and other factors.

(1) Second quarter effective tax rate of 27 percent used for adjusted diluted earnings per share calculation.     (2) Adjusted EBITDA is defined as earnings before finance costs, income taxes, depreciation and amortization ("EBITDA"), before finance costs, income taxes, depreciation and amortization of joint ventures.    

MANAGEMENT'S DISCUSSION AND ANALYSIS

August 7, 2013

Unless otherwise noted, all financial information in this Management's Discussion and Analysis ("MD&A") is prepared using accounting policies in accordance with International Financial Reporting Standards ("IFRS") and is presented in accordance with International Accounting Standard 34 - Interim Financial Reporting. All comparisons of results for the second quarter of 2013 (three months ended June 30, 2013) are against results for the second quarter of 2012 (three months ended June 30, 2012). All dollar amounts refer to United States ("U.S.") dollars except where otherwise stated. Certain financial measures in this MD&A are not prescribed by IFRS, and are defined in the Additional and Non-IFRS Financial Measures section of this MD&A.

The following interim MD&A is as of August 7, 2013 and should be read in conjunction with the consolidated interim financial statements for the three and six months ended June 30, 2013 and 2012 (the "Consolidated Financial Statements"), and the annual MD&A included in our 2012 Annual Report to Shareholders to which readers are referred. The Board of Directors carries out its responsibility for review of this disclosure principally through its Audit Committee, comprised exclusively of independent directors. The Audit Committee reviews, and prior to publication, approves, pursuant to the authority delegated to it by the Board of Directors this disclosure. No update is provided where an item is not material or there has been no material change from the discussion in our annual MD&A. Forward-Looking Statements are outlined after the Outlook, Key Risks and Uncertainties section of this MD&A.

2013 Second Quarter Operating Results

CONSOLIDATED NET EARNINGS

Effective January 1, 2013, Agrium adopted IFRS 11 Joint Arrangements whereby the classification and accounting of our investment in Profertil S.A. ("Profertil") and other joint arrangements previously accounted for using the proportionate consolidation method are accounted for using the equity method. 2012 figures have been restated and additional information has been provided in the Supplemental Information tables to display the results of our joint ventures. Adjusted EBITDA(1) has been added to show our results before finance costs, income taxes, depreciation and amortization of our joint ventures.

Agrium's 2013 second quarter consolidated net earnings ("net earnings") were $747-million, or $5.02 diluted earnings per share, compared to net earnings of $860-million, or $5.44 diluted earnings per share, for the same quarter of 2012.

Financial Overview ---------------------------------------------------------------------------- (millions of U.S. dollars, except per share amounts Three months ended June 30, and where noted) 2013 2012 Change % Change ---------------------------------------------------------------------------- Sales 7,016 6,772 244 4 ---------------------------------------------------------------------------- Gross profit 1,722 1,851 (129) (7) ---------------------------------------------------------------------------- Expenses 655 633 22 3 ---------------------------------------------------------------------------- Earnings before finance costs and income taxes ("EBIT") 1,067 1,218 (151) (12) ---------------------------------------------------------------------------- Net earnings 747 860 (113) (13) ---------------------------------------------------------------------------- Diluted earnings per share 5.02 5.44 (0.42) (8) ---------------------------------------------------------------------------- Effective tax rate (%) 27 28 N/A (1) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Financial Overview ---------------------------------------------------------------------------- (millions of U.S. dollars, except per share amounts Six months ended June 30, and where noted) 2013 2012 Change % Change ---------------------------------------------------------------------------- Sales 10,240 10,343 (103) (1) ---------------------------------------------------------------------------- Gross profit 2,438 2,636 (198) (8) ---------------------------------------------------------------------------- Expenses 1,139 1,169 (30) (3) ---------------------------------------------------------------------------- Earnings before finance costs and income taxes ("EBIT") 1,299 1,467 (168) (11) ---------------------------------------------------------------------------- Net earnings 888 1,015 (127) (13) ---------------------------------------------------------------------------- Diluted earnings per share 5.96 6.41 (0.45) (7) ---------------------------------------------------------------------------- Effective tax rate (%) 27 28 N/A (1) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Adjusted EBITDA is defined as earnings before finance costs, income taxes, depreciation and amortization ("EBITDA"), before finance costs, income taxes, depreciation and amortization of joint ventures.    

Sales

Sales increased by $244-million to $7.0-billion for the second quarter of 2013 and decreased $103-million to $10.2-billion for the first half of 2013 compared to the second quarter and first half of 2012, respectively. Factors that affected our performance during the second quarter of 2013 compared to the second quarter of 2012 include the following:

-- Retail sales increased by 7 percent to $5.6-billion as there was a return to a more regular seasonal crop input demand for the current quarter compared to the 2012 early spring season which pulled sales typically earned from the second quarter into the first quarter for crop nutrients and crop protection products; -- Wholesale sales decreased by 9 percent to $1.5-billion caused by lower urea, potash and phosphate realized sales prices combined with an unplanned outage at our Redwater nitrogen facility and subsequent advancement of the planned September turnaround at the facility into the month of June which reduced the volumes available for sale; and -- Advanced Technologies ("AAT") sales increased 16 percent to $207-million largely due to the strength of Environmentally Smart Nitrogen ("ESN") volumes and margins.

Gross Profit

Our gross profit for the second quarter of 2013 was $1.7-billion, a decrease of $129-million compared to the second quarter of 2012. The drivers of this variance consist of:

-- Wholesale's gross profit decreased by $166-million to $486-million for the second quarter of 2013, compared to the second quarter of 2012 predominately from lower sales prices for urea, potash and phosphate in addition to higher nitrogen cost of product sold related to higher natural gas costs along with higher fixed costs due to the unplanned Redwater nitrogen facility outage and subsequent advancement of the planned turnaround; and -- Retail's gross profit increased by $38-million to $1.1-billion for the second quarter of 2013, compared to the second quarter of 2012, as a result of increased sales of crop nutrients, crop protection products and seed.

Expenses

Expenses increased $22-million for the second quarter of 2013 compared to the second quarter of 2012. This difference is primarily a result of the following items:

-- A $39-million increase in other expenses attributed to the 2012 one-time recovery on the settlement of the sale of the commodity management business which was not repeated in 2013 and the current period net losses on derivative financial instruments in addition to non-recurring proxy defense costs; and -- An increase in Retail selling expenses of $18-million driven by increased maintenance costs and depreciation and amortization expense associated with Retail locations acquired in 2012 (see section "Retail" for further discussion).

The above increases were partially offset by a $39-million favorable change in share-based payments expense, with a $30-million share-based payments recovery in the second quarter of 2013 compared to a $9-million charge in the second quarter of 2012 (see section "Other" for further discussion).

The following table is a summary of our other expenses (income) for the second quarter and first half of 2013 and 2012, respectively.

---------------------------------------------------------------------------- Three months ended Six months ended June 30, June 30, (millions of U.S. dollars) 2013 2012 2013 2012 ---------------------------------------------------------------------------- Realized loss (gain) on derivative financial instruments - 12 (14) 24 ---------------------------------------------------------------------------- Unrealized loss (gain) on derivative financial instruments 3 (15) (4) (14) ---------------------------------------------------------------------------- Interest income (16) (19) (31) (35) ---------------------------------------------------------------------------- Foreign exchange loss 8 11 26 11 ---------------------------------------------------------------------------- Environmental remediation and asset retirement obligations 3 - 4 12 ---------------------------------------------------------------------------- Bad debt expense 21 16 26 24 ---------------------------------------------------------------------------- Potash profit and capital tax 8 8 12 13 ---------------------------------------------------------------------------- Other 16 (9) 10 - ---------------------------------------------------------------------------- 43 4 29 35 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Effective Tax Rate

The effective tax rate was 27 percent for the second quarter and first half of 2013 and is comparable to the effective tax rate of 28 percent for the second quarter and first half of 2012.

Retail

Retail reported record second quarter sales of $5.6-billion, an increase of 7 percent compared to sales of $5.2-billion reported in the same period last year. The increase was driven by a return to a more regular seasonal crop input demand for the first half of 2013 in North America and the exceptionally early planting season experienced in 2012. Gross profit was $1.1-billion in the second quarter of 2013, in-line with the same period last year. Retail reported record EBITDA of $619-million for a second quarter, compared to $605-million reported in the same quarter of last year. Retail EBITDA results for the first half of 2013 were down from the previous year, due primarily to the compressed spring season experienced in the U.S. this year compared to the early and open spring season of last year.

Crop nutrient sales were $2.5-billion this quarter, compared to $2.4-billion in the second quarter of 2012. The increase was due to a 9 percent increase in total crop nutrient volumes as a result of acquisitions made in the second half of 2012 and the seasonal shift from the significantly early application season a year ago. North America nutrient sales volumes increased by 6 percent and Australia improved by 27 percent in the second quarter of 2013 when compared to the same period last year. Gross profit for crop nutrients was $424-million this quarter, an increase of $24-million compared to the $400-million reported in the second quarter of 2012. Total crop nutrient margins as a percentage of sales were 17 percent in the second quarter of 2013, which is in-line with the same quarter last year. Retail nutrient margins were $103 per tonne this quarter, slightly lower than the $107 per tonne in the second quarter of 2012, despite a higher proportion of sales volumes in international versus domestic markets this year, as well as lower benchmark nutrient prices year over year and declining prices throughout the first half of 2013.

Crop protection sales were $1.8-billion in the second quarter of 2013, compared to the $1.7-billion in sales reported in the same period last year. The increase in sales was driven by minor price increases, an increase in wholesale crop protection sales, and acquisitions made in the second half of 2012. Gross profit this quarter was $406-million, an increase of $6-million over the $400-million reported in the second quarter of 2012. Total crop protection margins as a percentage of sales were 22 percent this quarter, compared to 23 percent in the same period last year. This slight decline is a result of the significantly earlier spring season last year moving traditionally third quarter higher margin products into the second quarter of 2012, and wholesale products experiencing a higher sales mix in the current quarter of 2013. First half 2013 crop protection margins as a percentage of sales were 20 percent, on par with the same period in 2012.

Seed sales were $809-million in the second quarter of 2013, up from $712-million in the second quarter last year as a result of the delayed spring planting season in the current year and the historical early planting season last year. Gross profit was $140-million this quarter, 12 percent higher than the $125-million reported last year. Seed margins as a percentage of sales were 17 percent in the second quarter of 2013, in-line with the margins reported in the same period for 2012. For the first half of 2013, seed margins were 17 percent, 1 percent higher than reported in the same period for 2012.

Sales of merchandise in the second quarter of 2013 were $142-million, compared to $157-million in the same period last year. Gross profit for this product line was $23-million this quarter, compared to $32-million reported in the second quarter of 2012. This decrease is due to low cattle and sheep prices in Australia during the current quarter which led farmers in this region to be more cautious on discretionary spending on general merchandise and animal related products.

Services and other sales were $279-million this quarter, compared to the $264-million reported in the second quarter of 2012. Gross profit was $149-million in the second quarter of 2013, compared to $147-million for the same period last year.

Retail selling expenses for the second quarter of 2013 were $538-million compared to $520-million in the same period last year. The majority of this variance is related to increased operating costs and the associated depreciation and amortization of retail locations acquired in 2012. Selling expenses as a percentage of sales decreased to 9.7 percent in the second quarter of 2013 compared to 10.0 percent reported in the second quarter last year.

Wholesale

Wholesale's 2013 second quarter sales were $1.5-billion, lower than the $1.6-billion reported in the same quarter last year. Gross profit was $486-million this quarter, compared to $652-million in the second quarter of 2012. Wholesale reported EBITDA of $517-million in the second quarter of 2013, a decrease of $160-million from the same period last year. Wholesale's Adjusted EBITDA, defined as EBITDA before finance costs, income taxes, depreciation, and amortization of our joint ventures (predominantly related to our 50 percent ownership in the Profertil nitrogen facility) was $525-million this quarter, compared to $686-million reported in the same period last year. Wholesale's results this quarter were primarily impacted by lower realized sales prices for urea, potash and phosphate as a consequence of global market pressures accompanied by an unplanned outage at our Redwater nitrogen facility.

Nitrogen gross profit in the second quarter of 2013 was $294-million, compared to $412-million in the same quarter last year. Nitrogen sales volumes were 1,103,000 tonnes in the second quarter of 2013, down 113,000 tonnes from the same period last year as a result of an unplanned outage at our Redwater facility in June which led to lower urea and nitrogen solutions sales volumes. Realized sales prices for ammonia were stronger than the second quarter last year, while urea was impacted by a significant drop in benchmark pricing during the quarter. Nitrogen cost of product sold was $315 per tonne this quarter, an increase from the $235 per tonne reported in the second quarter of 2012 due primarily to higher natural gas costs and expenses associated with the Redwater outage and subsequent advancement of the planned September turnaround at the facility into the month of June. Our average nitrogen gross margins were $267 per tonne this quarter, compared to $339 per tonne in the same period last year.

Agrium's average natural gas cost in cost of product sold was $3.67/MMBtu this quarter ($3.73/MMBtu including the impact of realized losses on natural gas derivatives), compared to $2.09/MMBtu for the same period in 2012 ($2.57/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 second quarter of 2013 was $4.09/MMBtu, compared to $2.26/MMBtu in the same quarter last year. The AECO (Alberta) basis differential was a $0.56/MMBtu discount to NYMEX in the second quarter of 2013, comparable to the $0.44/MMBtu discount in the second quarter of 2012.

Potash gross profit for the second quarter of 2013 was $120-million, compared to $153-million reported in the same quarter last year. The decrease was driven by lower realized sales prices in both international and domestic markets. The impact from lower prices was partially offset by an increase in total sales volumes to 544,000 tonnes in the current quarter versus 512,000 tonnes in the same period last year. International sales volumes were 33 percent higher in the second quarter of 2013 than the same period last year following the settlement of new contracts with China and India in early 2013. Domestic sales volumes were 243,000 tonnes this quarter, down from 285,000 tonnes in the second quarter of 2012. Potash cost of product sold was $168 per tonne this quarter, $13 per tonne lower than the $181 per tonne reported in the second quarter of 2012 as a result of a higher percentage of international volumes and lower freight costs on domestic sales as compared to the same quarter last year. Gross margin on a per tonne basis was $221 in the second quarter of 2013, compared to the $299 per tonne realized during the same quarter in 2012.

Phosphate gross profit was $27-million in the second quarter of 2013, compared to $42-million in the same quarter last year. The decrease was primarily due to lower realized sales prices resulting from weaker global market conditions, particularly in relation to demand from India. Realized phosphate sales prices were $667 per tonne this quarter, a decrease from $713 per tonne in the same period last year. Phosphate cost of product sold was $584 per tonne in the second quarter of 2013, a slight increase from $581 per tonne in the same period last year. Phosphate sales volumes were 317,000 tonnes in the second quarter of 2013, slightly higher than 313,000 tonnes in the second quarter last year. On a per tonne basis, gross margin in the second quarter of 2013 decreased to $83 per tonne, compared to $132 per tonne in the same period last year.

Product purchased for resale gross profit was $8-million this quarter, compared to $15-million in the second quarter of 2012. The decrease was primarily a result of lower international sales volumes and lower margins on domestic nitrogen products. Gross profit on ammonium sulfate and other was $7-million higher than the same period last year, as unfavourable weather conditions in the first quarter of 2013 pushed sales into the second quarter and input costs for sulfur declined compared to the same period last year.

Wholesale expenses in the second quarter of 2013 were $33-million, compared to $24-million in the second quarter of 2012. The increase in expenses was driven primarily by an increase in environmental remediation costs and asset decommissioning at the Kapuskasing mine.

Advanced Technologies

AAT reported a record quarterly gross profit of $39-million in the second quarter of 2013, an increase of $3-million over the $36-million reported in the same period last year. EBITDA was also a record $24-million in the second quarter, a 20 percent increase over the $20-million reported in the same period last year. The year-over-year improvement was primarily due to increased ESN volumes as a result of gains in market acceptance in North America for this product and incremental production at our New Madrid facility which was completed in the second half of 2012.

Other

EBITDA for our Other non-operating business unit for the second quarter of 2013 was $39-million, compared to $24-million for the second quarter of 2012. The favorable increase was primarily driven by a $39-million favorable change in share-based payments expense, where there was a $30-million recovery in the second quarter of 2013 compared to a $9-million charge in the second quarter of 2012. This was largely caused by a depreciation of our share price during the second quarter of 2013 compared to an appreciation of our share price during the second quarter of 2012.

The increased EBITDA was partially offset by the 2012 one-time recovery on the settlement of the sale of the commodity management business which was not repeated in 2013 coupled with non-recurring proxy defense costs in the second quarter of 2013 compared to the second quarter of 2012.

FINANCIAL CONDITION

The following are changes to working capital on our Consolidated Balance Sheets in the six-month period ended June 30, 2013 compared to December 31, 2012.

---------------------------------------------------------------------------- (millions of U.S. dollars, except as June 30, December 31, Explanation of the noted) 2013 2012 $ Change % Change change in balance ---------------------------------------------------------------------------- Current assets Cash and cash 494 658 (164) (25%) See discussion under equivalents the section "Liquidity and Capital Resources" ---------------------------------------------------------------------------- Accounts 3,845 2,224 1,621 73% Increased sales receivable during the spring season resulted in higher Retail trade and vendor rebates receivable ---------------------------------------------------------------------------- Income taxes 11 32 (21) (66%) The U.S. current receivable income tax position moved from income taxes receivable at year end to income taxes payable ---------------------------------------------------------------------------- Inventories 2,913 3,094 (181) (6%) Inventory drawdown due to increased seasonal sales activity ---------------------------------------------------------------------------- Advance on 762 1,792 (1,030) (57%) Glencore acquisition of International plc Viterra Inc.     ("Glencore") completed the sale of Viterra Inc.'s ("Viterra") minority interest in the Medicine Hat nitrogen facility to CF Industries Holdings Inc. ("CF") ---------------------------------------------------------------------------- Prepaid 114 740 (626) (85%) Drawdown of prepaid expenses and inventory due to deposits increased seasonal sales activity in the spring ---------------------------------------------------------------------------- Current liabilities Short-term debt 459 1,314 (855) (65%) Repayment of short- term multi- jurisdictional facility ---------------------------------------------------------------------------- Accounts 3,615 3,479 136 4% Increased Retail payable inventory purchases due to increased sales activity, partially offset by drawdown of customer prepayments during the spring application season ---------------------------------------------------------------------------- Income taxes 57 137 (80) (58%) Final payment of payable 2012 Canadian taxes in the first quarter of 2013 partially offset by an increase in the excess accrued current taxes over related installments for Canada and the U.S.     ---------------------------------------------------------------------------- Current portion - 518 (518) (100%) Repayment of of long-term floating rate bank debt loans along with South American debt that matured in the first half of 2013 ---------------------------------------------------------------------------- Current portion 71 108 (37) (34%) Legacy site of other environmental provisions remediation liability reclassified to non- current based on updated spending projections ---------------------------------------------------------------------------- Working capital 3,937 2,984 953 32% ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

LIQUIDITY AND CAPITAL RESOURCES

Summary of Consolidated Statements of Cash Flows

Below is a summary of our cash provided by or used in operating, investing, and financing activities as reflected in the Consolidated Statements of Cash Flows:

---------------------------------------------------------------------------- Six months ended June 30, (millions of U.S. dollars) 2013 2012 Change ---------------------------------------------------------------------------- Cash provided by operating activities 298 1,135 (837) ------------------------------ Cash provided by (used in) investing activities 119 (578) 697 ------------------------------ Cash (used in) provided by financing activities (548) 75 (623) ------------------------------ Effect of exchange rate changes on cash and cash equivalents (33) (6) (27) ---------------------------------------------------------------------------- (Decrease) increase in cash and cash equivalents (164) 626 (790) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The sources and uses of cash for the six months ended June 30, 2013 compared to the six months ended June 30, 2012 are summarized below:

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Cash provided by operating activities - Drivers behind the $837-million source of cash decrease ---------------------------------------------------------------------------- Use of cash - $127-million decrease in consolidated net earnings.     - $70-million decrease in non-cash items, resulting primarily from a change of $87-million in share-based payments coupled with an increase in deferred income taxes recovery of $58-million. This was offset by an increase in depreciation and amortization of $45-million during the first six months of 2013.     - $652-million decrease in non-cash working capital. The decrease was primarily driven by a lower reduction in inventory and a lower increase in accounts payable during the first six months of 2013 versus the first six months of 2012 due to an earlier spring application season in 2012. ---------------------------------------------------------------------------- Cash provided by (used in) investing activities - Drivers behind the $697- million source of cash increase ---------------------------------------------------------------------------- Source of cash - $932-million increase provided from the repayment of the advance to Glencore.     - $23-million decrease for acquisitions due to fewer Retail tuck-in acquisitions occurring during the first six months of 2013 versus the first six months of 2012.     ----------------------------------------------------------- Use of cash - $275-million increase in capital expenditures primarily related to the Vanscoy potash expansion project.     ---------------------------------------------------------------------------- Cash (used in) provided by financing activities - Drivers behind the $623- million use of cash increase ---------------------------------------------------------------------------- Source of cash - On May 28, 2013, we issued $500-million of 3.5 percent debentures due June 1, 2023 and $500-million of 4.9 percent debentures due June 1, 2043.     ----------------------------------------------------------- Use of cash - $900-million increase due to the repayment of $816- million in short-term debt during the first six months of 2013 compared to cash provided by short-term debt of $84- million during the first six months of 2012.     - $519-million repayment of long-term debt during the first six months of 2013.     - $113-million increase in dividends paid during the first six months of 2013 resulting from increasing the 2013 first quarter dividend to $0.50 per share from $0.225 per share in 2012. In addition, Agrium announced the declaration and payment of dividends on a quarterly basis starting in 2013 which resulted in doubling the cash outflow for the period.     - $62-million increase for the purchase and cancellation of common shares under our normal course issuer bid during the first six months of 2013.     ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Capital Expenditures ---------------------------------------------------------------------------- Six months ended June 30, (millions of U.S. dollars) 2013 2012 ---------------------------------------------------------------------------- Investing capital 541 265 -------------------- Sustaining capital 231 232 ---------------------------------------------------------------------------- Total 772 497 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Our investing capital expenditures increased in the first half of 2013 compared to the first half of 2012 due to continued activity on the Vanscoy potash expansion project.

Short-term Debt

Our short-term debt at June 30, 2013 is summarized as follows:

---------------------------------------------------------------------------- (millions of U.S. dollars) Total Unutilized Utilized ---------------------------------------------------------------------------- Multi-jurisdictional facility expiring 2017 2,500 2,280 220 -------------------------------- European facilities expiring 2013 344 139 205 -------------------------------- South American facilities expiring 2013 - 2014 108 74 34 ---------------------------------------------------------------------------- 2,952 2,493 459 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Outstanding letters of credit 95 ---------------------------------------------------------------------------- Remaining capacity available 2,398 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

OUTSTANDING SHARE DATA

The number of Agrium's outstanding shares at July 31, 2013 was approximately 147 million. At July 31, 2013, the number of shares issuable pursuant to stock options outstanding (issuable assuming full conversion, where each option granted can be exercised for one common share) was approximately nil.

SELECTED QUARTERLY INFORMATION (i) ---------------------------------------------------------------------------- (millions of U.S. dollars, 2013 2013 2012 2012 2012 2012 2011 2011 except per share amounts) Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 ---------------------------------------------------------------------------- Sales 7,016 3,224 3,157 2,832 6,772 3,571 3,177 3,141 ------------------------------------------------ Gross profit 1,722 716 987 739 1,851 785 1,045 888 ------------------------------------------------ Net earnings from continuing operations 747 141 354 129 860 155 327 293 ------------------------------------------------ Net earnings 747 141 354 129 860 155 193 293 ------------------------------------------------ Earnings per share from continuing operations ---------------------------------------------------------------------------- -basic 5.02 0.94 2.34 0.80 5.44 0.97 2.05 1.86 ------------------------------------------------ -diluted 5.02 0.94 2.34 0.80 5.44 0.97 2.04 1.85 ---------------------------------------------------------------------------- Earnings per share ---------------------------------------------------------------------------- -basic 5.02 0.94 2.34 0.80 5.44 0.97 1.20 1.86 ------------------------------------------------ -diluted 5.02 0.94 2.34 0.80 5.44 0.97 1.20 1.85 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (i) 2012 results have been restated to reflect the adoption of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures. 2011 results have not been restated.    

The agricultural products business is seasonal in nature. Consequently, comparisons made on a year-over-year basis are more appropriate than quarter-over-quarter. 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

As described in our annual MD&A included in our 2012 Annual Report, we have agreed to purchase certain agri-products assets of Viterra from Glencore which acquired Viterra on December 17, 2012. On April 30, 2013, CF, holder of a 66 percent interest in the Medicine Hat facility, acquired Viterra's 34 percent interest from Glencore (the "CF transaction"). Following closing of the CF transaction, we received Cdn$939-million (U.S.$932-million), which is subject to adjustment for final determinations of amounts in accordance with our agreement with Glencore. Refer to note 4 of the Summarized Notes to the Consolidated Financial Statements for further information.

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 three months ended June 30, 2013, we purchased approximately one million shares for total consideration of approximately $88-million under our NCIB. From July 1, 2013 to July 31, 2013, we purchased approximately one million shares for total consideration of approximately $91-million. Refer to note 10 of the Summarized Notes to the Consolidated Financial Statements for further information.

ADDITIONAL AND NON-IFRS FINANCIAL MEASURES

In the discussion of our performance for the quarter, in addition to the primary measures of earnings and earnings per share reported in accordance with IFRS, we make reference to EBIT, EBITDA and Adjusted EBITDA. We consider EBIT, EBITDA and Adjusted EBITDA to be useful measures of performance because income tax jurisdictions and business segments are not synonymous and we believe that allocation of income tax charges distorts the comparability of historical performance for the different business segments. Similarly, financing and related interest charges cannot be allocated to all business units on a basis that is meaningful for comparison with other companies.

EBITDA and Adjusted EBITDA are not recognized measures under IFRS, and our method of calculation may not be comparable to other companies. In addition, these measures should not be used as alternatives to net earnings as determined in accordance with IFRS.

EBIT is presented on our Consolidated Statements of Operations and is classified as an additional IFRS measure.

The following table is a reconciliation of EBIT, EBITDA and Adjusted EBITDA to net earnings as determined in accordance with IFRS:

---------------------------------------------------------------------------- Three months ended June 30, 2013 (millions of U.S. dollars) Retail Wholesale AAT Other Consolidated ---------------------------------------------------------------------------- Adjusted EBITDA 619 525 24 39 1,207 -------------------------------------------- Equity accounted joint ventures: Finance costs and income taxes - 7 - - 7 -------------------------------------------- Depreciation and amortization - 1 - - 1 ---------------------------------------------------------------------------- EBITDA 619 517 24 39 1,199 -------------------------------------------- Depreciation and amortization 57 64 8 3 132 ---------------------------------------------------------------------------- EBIT 562 453 16 36 1,067 ---------------------------------------------------------------------------- Finance costs related to long- term debt (21) -------------- Other finance costs (21) -------------- Income taxes (278) ---------------------------------------------------------------------------- Net earnings 747 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three months ended June 30, 2012 (millions of U.S. dollars) Retail Wholesale AAT Other Consolidated ---------------------------------------------------------------------------- Adjusted EBITDA 605 686 20 24 1,335 -------------------------------------------- Equity accounted joint ventures: Finance costs and income taxes - 6 - - 6 -------------------------------------------- Depreciation and amortization - 3 - - 3 ---------------------------------------------------------------------------- EBITDA 605 677 20 24 1,326 -------------------------------------------- Depreciation and amortization 49 49 6 4 108 ---------------------------------------------------------------------------- EBIT 556 628 14 20 1,218 ---------------------------------------------------------------------------- Finance costs related to long- term debt (22) -------------- Other finance costs (9) -------------- Income taxes (327) ---------------------------------------------------------------------------- Net earnings 860 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Six months ended June 30, 2013 ---------------------------------------------------------------------------- (millions of U.S. dollars) Retail Wholesale AAT Other Consolidated ---------------------------------------------------------------------------- Adjusted EBITDA 644 909 30 (25) 1,558 --------------------------------------------- Equity accounted joint ventures: Finance costs and income taxes - 14 - - 14 --------------------------------------------- Depreciation and amortization - 3 - - 3 ---------------------------------------------------------------------------- EBITDA 644 892 30 (25) 1,541 ---------------------------------------------------------------------------- Depreciation and amortization 110 112 14 6 242 --------------------------------------------- EBIT 534 780 16 (31) 1,299 ---------------------------------------------------------------------------- Finance costs related to long- term debt (43) -------------- Other finance costs (39) -------------- Income taxes (329) ---------------------------------------------------------------------------- Net earnings 888 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Six months ended June 30, 2012 ---------------------------------------------------------------------------- (millions of U.S. dollars) Retail Wholesale AAT Other Consolidated ---------------------------------------------------------------------------- Adjusted EBITDA 706 1,048 22 (104) 1,672 --------------------------------------------- Equity accounted joint ventures: Finance costs and income taxes - 3 - - 3 --------------------------------------------- Depreciation and amortization - 5 - - 5 ---------------------------------------------------------------------------- EBITDA 706 1,040 22 (104) 1,664 ---------------------------------------------------------------------------- Depreciation and amortization 93 83 13 8 197 --------------------------------------------- EBIT 613 957 9 (112) 1,467 ---------------------------------------------------------------------------- Finance costs related to long- term debt (44) -------------- Other finance costs (19) -------------- Income taxes (389) ---------------------------------------------------------------------------- Net earnings 1,015 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Supplemental Information 5, Selected Financial Measures, also provides certain ratios that are not recognized measures under IFRS and our method of calculation may not be comparable to that of other companies. Ratio definitions are provided in Supplemental Information 6, Accompanying Notes to Supplemental Information. Return on operating capital employed, return on capital employed, and average non-cash working capital to sales presented in Supplemental Information 5 are measures classified as additional IFRS financial measures, where they reflect Consolidated Agrium. We consider these measures to provide useful information to both management and investors in measuring our financial performance and financial condition.

CRITICAL ACCOUNTING JUDGMENTS AND ESTIMATES

We prepare our financial statements in accordance with IFRS, which requires us to make assumptions and estimates about future events and apply significant judgments. We base our assumptions, estimates and judgments on our historical experience, current trends and all available information that we believe is relevant at the time we prepare the financial statements. However, future events and their effects cannot be determined with certainty. Accordingly, as confirming events occur, actual results could ultimately differ from our assumptions and estimates. Such differences could be material. For further information on the Company's critical accounting judgments and estimates, refer to the section "Critical Accounting Judgments and Estimates" of our 2012 annual Management's Discussion and Analysis, which is contained in our 2012 Annual Report. Since the date of our 2012 annual Management's Discussion and Analysis, there have not been any significant changes to our critical accounting judgments and estimates.

CHANGES IN ACCOUNTING POLICIES

Effective January 1, 2013 Agrium adopted IFRS 11 Joint Arrangements whereby the classification and accounting of our investment in Profertil and other joint arrangements previously accounted for using the proportionate consolidation method are accounted for using the equity method. Refer to note 3 of the Summarized Notes to the Consolidated Financial Statements for further information.

For information regarding changes in accounting policies, refer to the section "Accounting Standards and Policy Changes Not Yet Implemented" of our 2012 annual Management's Discussion and Analysis, which is contained in our 2012 Annual Report.

BUSINESS RISKS

The information presented on Enterprise Risk Management and Key Business Risks on pages 74 - 77 in our 2012 Annual Report has not changed materially since December 31, 2012.

CONTROLS AND PROCEDURES

There have been no changes in our internal control over financial reporting during the quarter ended June 30, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PUBLIC SECURITIES FILINGS

Additional information about our company, including our 2012 Annual Information Form is filed with the Canadian securities regulatory authorities through SEDAR at www.sedar.com and with the U.S. securities regulatory authorities through EDGAR at www.sec.gov.

OUTLOOK, KEY RISKS AND UNCERTAINTIES

Weather was an important driver of agricultural and crop input markets in the second quarter of 2013. U.S. spring planting was significantly later than average due to heavy precipitation early in the planting season. Once conditions dried sufficiently to allow planting, the spring application season was compressed and intense. While late planting tends to increase yield risk in corn because the crop pollinates later in the year (when temperatures are higher), U.S. crop conditions are near normal levels, which points to a significant improvement in yields versus 2012. Improved global crop production prospects have pushed crop prices lower. While analysts expect crop prices to be below levels of the past two years, they are expected to remain significantly above historical averages. The United States Department of Agriculture ("USDA") projects that global grains and oilseeds production will increase by 7 percent in 2013/14, but global grains and oilseeds ending stocks are projected to remain relatively tight, meaning that agricultural prices will need to remain high enough to maintain a strong global area base.

The late, wet spring has provided increased weed and disease pressure this year, particularly as the growing season has returned to a more normal pattern compared to last year, which is expected to be supportive of demand for crop protection products this summer.

Retail dealers sought to end the 2012/13 fertilizer year with minimal inventories, as a result of the uncertainty in global crop nutrient markets this year, which should support crop nutrient demand in advance of the fall 2013 application season. We also expect that due to potentially high corn yields, soil nutrient uptake will be higher this year and will reinforce grower demand for nutrients in the back half of 2013. Nitrogen prices declined in the second quarter of 2013 as the Northern Hemisphere's spring season ended and the market anticipated Chinese export supplies to enter the market in July. There remains uncertainty as to how much urea China will export in 2013, given exports in the first half of 2013 and the beginning of the export period were significantly higher than 2012. However, current market prices are less attractive to Chinese exporters. In response to reduced prices, some of the world's marginal nitrogen producers have shut down. In India, the monsoon season has been good so far, which should favor strong nitrogen demand.

The phosphate market has been impacted by the uncertainty over the timing and volume of Indian phosphate imports in particular. Indian phosphate imports are expected to decline in 2013/14, due to the changes in domestic subsidies and a further recent devaluation of the rupee. However, Indian buyers are still expected to purchase significant volumes due to the strong monsoon season and some benefit from lower Indian Maximum Retail Prices that are expected to pass onto growers. Other global buyers have purchased only as needed to meet sales; however, demand in South America has been relatively strong. In the first half of 2013, Brazilian DAP/MAP imports were up 52 percent from 2012 levels and Brazilian importers are traditionally most active in the second half of the year.

Global shipments of potash were strong in the second quarter and first half of 2013, supported by Chinese first half potash imports being the highest since 2007 and Brazilian imports on a record pace for 2013. In North America, strong potash shipments in the first three quarters of the 2012/13 fertilizer year, combined with the goal of minimal inventories by the end of the spring season, reduced second quarter demand compared to 2012. However, the recent announcement by Uralkali to exit the Belarusian Potash Company marketing agency and to significantly increase its operating rate in the future has added uncertainty to the outlook for potash markets. Time will be needed to evaluate how global producers and customers are likely to respond and what the implications are for the short and long-term outlook for the potash industry. Irrespective, U.S. domestic demand is expected to be solid in the fourth quarter, as nutrient removal for all three nutrients should be strong given the expected rebound in North American crop yields this year, and given that domestic retailers ended the spring season with minimal inventories. Globally, Brazil is expected to keep on a record pace for the year as they move into their busiest application period.

Forward-Looking Statements

Certain statements and other information included in this MD&A 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 MD&A, 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; 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 listed below. 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 proposed acquisition of the Agri-products Business 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. Furthermore, there are risks associated with Agrium's proposed acquisition of the Agri-products Business of Viterra including that completion of the acquisition of the assets proposed to be purchased by Agrium as well as the timing thereof is dependent on the receipt of the necessary regulatory approvals and the satisfaction of other conditions precedent to closing and there can be no assurances that such regulatory approvals will be received, and that the other conditions to closing will be satisfied, in a timely fashion, or at all; potential liabilities associated with the assets proposed to be assumed by Agrium, which may not be known to Agrium at this time, due in part, to the fact that the nature of the transaction did not allow for Agrium to complete customary due diligence prior to entering into the agreement to purchase the assets.

Agrium disclaims any intention or obligation to update or revise any forward-looking statements in this MD&A 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 through our Advanced Technologies business unit. 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 2nd Quarter Conference Call will be available in a listen-only mode beginning Thursday, August 8th, 2013 at 7:30 a.m. MT (9:30 a.m. ET). Please visit the following website: www.agrium.com.

AGRIUM INC.

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED

June 30, 2013

AGRIUM INC.     Consolidated Statements of Operations (Millions of U.S. dollars, except per share amounts) (Unaudited) Three months ended Six months ended June 30, June 30, ---------------------------------------------------------------------------- 2013 2012 2013 2012 Restated Restated (note 3) (note 3) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Sales 7,016 6,772 10,240 10,343 ---------------------------------- Cost of product sold 5,294 4,921 7,802 7,707 ---------------------------------------------------------------------------- Gross profit 1,722 1,851 2,438 2,636 ---------------------------------- Expenses ---------------------------------- Selling 559 540 968 909 ------------------------------------ General and administrative 68 102 170 259 ------------------------------------ Earnings from associates and joint ventures (15) (13) (28) (34) ------------------------------------ Other expenses (note 5) 43 4 29 35 ---------------------------------------------------------------------------- Earnings before finance costs and income taxes 1,067 1,218 1,299 1,467 ------------------------------------ Finance costs related to long-term debt 21 22 43 44 ------------------------------------ Other finance costs 21 9 39 19 ---------------------------------------------------------------------------- Earnings before income taxes 1,025 1,187 1,217 1,404 ---------------------------------- Income taxes 278 327 329 389 ---------------------------------------------------------------------------- Net earnings 747 860 888 1,015 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Attributable to: ---------------------------------------------------------------------------- Equity holders of Agrium 749 860 890 1,013 ------------------------------------ Non-controlling interest (2) - (2) 2 ---------------------------------------------------------------------------- Net earnings 747 860 888 1,015 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Earnings per share attributable to equity holders of Agrium (note 6) ---------------------------------------------------------------------------- Basic earnings per share 5.02 5.44 5.96 6.41 ------------------------------------ Diluted earnings per share 5.02 5.44 5.96 6.41 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- See accompanying notes.     AGRIUM INC.     Consolidated Statements of Comprehensive Income (Millions of U.S. dollars) (Unaudited) Three months ended Six months ended June 30, June 30, ---------------------------------------------------------------------------- 2013 2012 2013 2012 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net earnings 747 860 888 1,015 ------------------------------------ Other comprehensive loss ------------------------------------ Items that may be reclassified to earnings ------------------------------------ Available for sale financial instruments ------------------------------------ Gains 1 - 1 - ------------------------------------ Foreign currency translation ------------------------------------ Losses (219) (48) (243) (13) ------------------------------------ Associates and joint ventures (loss) income - (2) 1 (2) ---------------------------------------------------------------------------- (218) (50) (241) (15) ---------------------------------------------------------------------------- Items that will not be reclassified to earnings ------------------------------------ Post-employment benefits ------------------------------------ Actuarial losses - (22) - (22) ------------------------------------ Deferred income taxes - 6 - 6 ---------------------------------------------------------------------------- - (16) - (16) ---------------------------------------------------------------------------- Other comprehensive loss (218) (66) (241) (31) ---------------------------------------------------------------------------- Comprehensive income 529 794 647 984 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Attributable to: ---------------------------------------------------------------------------- Equity holders of Agrium 531 794 649 983 ------------------------------------ Non-controlling interest (2) - (2) 1 ---------------------------------------------------------------------------- Comprehensive income 529 794 647 984 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- See accompanying notes.     AGRIUM INC.     Consolidated Statements of Cash Flows (Millions of U.S. dollars) (Unaudited) Three months ended Six months ended June 30, June 30, ---------------------------------------------------------------------------- 2013 2012 2013 2012 Restated Restated (note 3) (note 3) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Operating ------------------------------------ Net earnings 747 860 888 1,015 ------------------------------------ Items not affecting cash ------------------------------------ Depreciation and amortization 132 108 242 197 ------------------------------------ Earnings from associates and joint ventures (15) (13) (28) (34) ------------------------------------ Share-based payments (30) 9 (14) 73 ------------------------------------ Unrealized loss (gain) on derivative financial instruments 3 (15) (4) (14) ------------------------------------ Unrealized foreign exchange (gain) loss (12) (2) 4 (8) ------------------------------------ Deferred income taxes (64) (12) (64) (6) ------------------------------------ Other 11 4 18 16 ------------------------------------ Dividends from associates and joint ventures 14 2 15 3 ------------------------------------ Net changes in non-cash working capital (843) (440) (759) (107) ---------------------------------------------------------------------------- Cash (used in) provided by operating activities (57) 501 298 1,135 ---------------------------------------------------------------------------- Investing ------------------------------------ Acquisitions, net of cash acquired (15) (3) (49) (72) ------------------------------------ Repayment of advance on acquisition of Viterra Inc. (note 4) 932 - 932 - ------------------------------------ Capital expenditures (426) (288) (772) (497) ------------------------------------ Investments in associates and joint ventures - - - 10 ------------------------------------ Purchase of investments - (1) (8) (3) ------------------------------------ Other (22) (39) (30) (45) ------------------------------------ Net changes in non-cash working capital 32 26 46 29 ---------------------------------------------------------------------------- Cash provided by (used in) investing activities 501 (305) 119 (578) ---------------------------------------------------------------------------- Financing ------------------------------------ Short-term debt (881) 41 (816) 84 ------------------------------------ Long-term debt issued 1,000 14 1,010 21 ------------------------------------ Transaction costs on long-term debt (14) - (14) - ------------------------------------ Repayment of long-term debt (478) (1) (519) (1) ------------------------------------ Dividends paid (74) - (149) (36) ------------------------------------ Shares issued - - 2 7 ------------------------------------ Shares repurchased (62) - (62) - ---------------------------------------------------------------------------- Cash (used in) provided by financing activities (509) 54 (548) 75 ---------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents (26) (11) (33) (6) ---------------------------------------------------------------------------- (Decrease) increase in cash and cash equivalents (91) 239 (164) 626 ---------------------------------------------------------------------------- Cash and cash equivalents - beginning of period (note 3) 585 1,674 658 1,287 ---------------------------------------------------------------------------- Cash and cash equivalents - end of period 494 1,913 494 1,913 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Included in operating activities ------------------------------------ Interest paid 18 12 74 56 ------------------------------------ Interest received 16 19 31 35 ------------------------------------ Income taxes paid 200 81 455 145 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Included in investing activities ------------------------------------ Interest paid 13 5 22 9 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- See accompanying notes.     AGRIUM INC.     Consolidated Balance Sheets (Millions of U.S. dollars) (Unaudited) June 30, December 31, ---------------------------------------------------------------------------- 2013 2012 2012 Restated Restated (note 3) (note 3) ---------------------------------------------------------------------------- Assets ---------------------------------------------------------------------------- Current assets ---------------------------------------------------------------------------- Cash and cash equivalents 494 1,913 658 ---------------------------------- Accounts receivable 3,845 3,702 2,224 ---------------------------------- Income taxes receivable 11 15 32 ---------------------------------- Inventories 2,913 2,325 3,094 ---------------------------------- Advance on acquisition of Viterra Inc.     (note 4) 762 - 1,792 ---------------------------------- Prepaid expenses and deposits 114 142 740 ---------------------------------------------------------------------------- 8,139 8,097 8,540 ---------------------------------- Property, plant and equipment (note 10) 3,940 2,806 3,484 ---------------------------------- Intangibles 649 645 636 ---------------------------------- Goodwill 2,250 2,290 2,349 ---------------------------------- Investments in associates and joint ventures 628 574 627 ---------------------------------- Other assets 120 54 99 ---------------------------------- Deferred income tax assets 81 59 70 ---------------------------------------------------------------------------- 15,807 14,525 15,805 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Liabilities and shareholders' equity ---------------------------------------------------------------------------- Current liabilities ---------------------------------------------------------------------------- Short-term debt (note 7) 459 294 1,314 ---------------------------------- Accounts payable 3,615 3,290 3,479 ---------------------------------- Income taxes payable 57 197 137 ---------------------------------- Current portion of long-term debt (note 7) - 529 518 ---------------------------------- Current portion of other provisions 71 84 108 ---------------------------------------------------------------------------- 4,202 4,394 5,556 ---------------------------------- Long-term debt (note 7) 3,066 1,574 2,069 ---------------------------------- Provisions for post-employment benefits 177 201 184 ---------------------------------- Other provisions 449 390 413 ---------------------------------- Other liabilities 67 64 79 ---------------------------------- Deferred income tax liabilities 517 562 584 ---------------------------------------------------------------------------- 8,478 7,185 8,885 ---------------------------------------------------------------------------- Shareholders' equity ---------------------------------------------------------------------------- Share capital 1,880 2,001 1,890 ---------------------------------- Retained earnings 5,618 5,338 4,955 ---------------------------------- Accumulated other comprehensive (loss) income (note 9) (170) (4) 71 ---------------------------------------------------------------------------- Equity holders of Agrium 7,328 7,335 6,916 ---------------------------------- Non-controlling interest 1 5 4 ---------------------------------------------------------------------------- Total equity 7,329 7,340 6,920 ---------------------------------------------------------------------------- 15,807 14,525 15,805 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- See accompanying notes.     AGRIUM INC.     Consolidated Statements of Shareholders' Equity (Millions of U.S. dollars, except share data) (Unaudited) Accumulated Millions other of comprehensive common Share Retained income (loss) shares capital earnings (note 9) ---------------------------------------------------------------------------- December 31, 2011 158 1,994 4,420 10 ---------------------------------------------------------------------------- Net earnings - - 1,013 - ---------------------------------------------------------------------------- Other comprehensive loss, net of tax ---------------------------------------------------------------------------- Post-employment benefits - - (16) - ----------------------------------------------------- Foreign currency translation - - - (12) ----------------------------------------------------- Associates and joint ventures - - - (2) ---------------------------------------------------------------------------- Comprehensive income, net of tax - - 997 (14) ----------------------------------------------------- Dividends - - (79) - ----------------------------------------------------- Share-based payment transactions - 7 - - ---------------------------------------------------------------------------- June 30, 2012 158 2,001 5,338 (4) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- December 31, 2012 149 1,890 4,955 71 ---------------------------------------------------------------------------- Net earnings (loss) - - 890 - ---------------------------------------------------------------------------- Other comprehensive income (loss), net of tax ---------------------------------------------------------------------------- Available for sale financial instruments - - - 1 ----------------------------------------------------- Foreign currency translation - - - (243) ----------------------------------------------------- Associates and joint ventures - - - 1 ---------------------------------------------------------------------------- Comprehensive income, net of tax - - 890 (241) ----------------------------------------------------- Dividends - - (149) - ----------------------------------------------------- Non-controlling interest transactions - - (2) - ----------------------------------------------------- Shares repurchased (1) (12) (76) - ----------------------------------------------------- Share-based payment transactions - 2 - - ---------------------------------------------------------------------------- June 30, 2013 148 1,880 5,618 (170) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- See accompanying notes.     AGRIUM INC.     Consolidated Statements of Shareholders' Equity (Millions of U.S. dollars, except share data) (Unaudited) Equity Non- holders of controlling Total Agrium interest equity -------------------------------------------------------------- December 31, 2011 6,424 4 6,428 -------------------------------------------------------------- Net earnings 1,013 2 1,015 -------------------------------------------------------------- Other comprehensive loss, net of tax -------------------------------------------------------------- Post-employment benefits (16) - (16) --------------------------------------- Foreign currency translation (12) (1) (13) --------------------------------------- Associates and joint ventures (2) - (2) -------------------------------------------------------------- Comprehensive income, net of tax 983 1 984 --------------------------------------- Dividends (79) - (79) --------------------------------------- Share-based payment transactions 7 - 7 -------------------------------------------------------------- June 30, 2012 7,335 5 7,340 -------------------------------------------------------------- -------------------------------------------------------------- -------------------------------------------------------------- December 31, 2012 6,916 4 6,920 -------------------------------------------------------------- Net earnings (loss) 890 (2) 888 -------------------------------------------------------------- Other comprehensive income (loss), net of tax -------------------------------------------------------------- Available for sale financial instruments 1 - 1 --------------------------------------- Foreign currency translation (243) - (243) --------------------------------------- Associates and joint ventures 1 - 1 -------------------------------------------------------------- Comprehensive income, net of tax 649 (2) 647 --------------------------------------- Dividends (149) - (149) --------------------------------------- Non-controlling interest transactions (2) (1) (3) --------------------------------------- Shares repurchased (88) - (88) --------------------------------------- Share-based payment transactions 2 - 2 -------------------------------------------------------------- June 30, 2013 7,328 1 7,329 -------------------------------------------------------------- -------------------------------------------------------------- See accompanying notes.    

AGRIUM INC.

Summarized Notes to the Consolidated Financial Statements

For the six months ended June 30, 2013

(Millions of U.S. dollars, except per share amounts)

(Unaudited)

1. Corporate Information

Corporate information

Agrium Inc. ("Agrium") is incorporated under the laws of Canada with common shares listed under the symbol "AGU" on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). Our Corporate head office is located at 13131 Lake Fraser Drive S.E. Calgary, Canada. We conduct operations globally from our Wholesale head office in Calgary, and our Retail and Advanced Technologies head offices in Loveland, Colorado, United States.

Agrium (with its subsidiaries) operates three strategic business units:

-- Retail operates in North and South America and Australia, and sells crop nutrients, crop protection products, seed and services directly to growers. -- Wholesale operates in North and South America and Europe, and produces, markets and distributes three primary groups of crop nutrients: nitrogen, potash and phosphate for agricultural and industrial customers around the world. -- Advanced Technologies ("AAT") produces and markets controlled-release crop nutrients and micronutrients in the broad-based agriculture, specialty agriculture, professional turf, horticulture, and consumer lawn and garden markets.

Basis of preparation and statement of compliance

These consolidated interim financial statements ("interim financial statements") were approved for issuance by the Audit Committee on August 7, 2013. We prepared these interim financial statements in accordance with International Financial Reporting Standards applicable to the preparation of interim financial statements as issued by the International Accounting Standards Board, including International Accounting Standard 34 Interim Financial Reporting. They do not include all information and disclosures normally provided in annual financial statements and should be read in conjunction with our audited annual financial statements and related notes contained in our 2012 Annual Report, available at www.agrium.com.

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

2. Significant Accounting Policies

Except as described below, the accounting policies applied in this consolidated interim financial report are the same as those applied by Agrium in our 2012 Annual Report. The following changes in accounting policies will be reflected in our 2013 Annual Report.

Standard/ Date and method Interpretation Description of adoption Impact ---------------------------------------------------------------------------- IFRS 10 Consolidated Financial January 1, 2013; There has been Statements implements a retrospectively no material single model based on impact on control for the preparation adoption.     and presentation of financial statements. It introduces a new definition of control, requiring power over the investee; exposure, or rights, to variable returns from involvement with the investee; and the ability to use power over the investee to affect the amount of returns. This model also applies to investments in associates (IAS 28).     ---------------------------------------------------------------------------- IFRS 11 Joint Arrangements requires January 1, 2013; See note 3 for us as a party to a joint in accordance impact on arrangement to recognize our with IFRS 11 adoption.     rights and obligations arising from the arrangement. Our joint arrangements under IFRS 11 will be classified as joint ventures, requiring equity accounting.     ---------------------------------------------------------------------------- IFRS 12 Disclosure of Interests in January 1, 2013 We will add Other Entities will require disclosures us to disclose information about our that allows users to interests in evaluate the nature, impact other entities of and risks associated with on adoption in our interests in joint our annual arrangements, associates and financial other entities.     statements.     ---------------------------------------------------------------------------- IFRS 13 Fair Value Measurement January 1, 2013; There has been provides a single set of prospectively no material requirements to be applied impact on to all fair value adoption.     measurements, replacing the existing guidance dispersed across many standards. It provides a definition of fair value as a market-based measurement, along with enhanced disclosures about fair value measurements.     ---------------------------------------------------------------------------- IAS 19 Employee Benefits provides January 1, 2013; We eliminated users with a clearer picture retrospectively the corridor of the commitments resulting approach on from defined benefit plans adoption of (DBPs) by eliminating the IFRS. The corridor approach, requiring balance of presentation of gains and requirements losses related to DBPs in have been other comprehensive income, adopted in 2013 and adding enhanced with no disclosure requirements.     material impact. We will provide new disclosures required by IAS 19 in our annual financial statements.     ---------------------------------------------------------------------------- IFRS 7 Offsetting Financial Assets January 1, 2013 There has been and Liabilities contains new no material disclosure requirements for impact on amounts offset or subject to adoption.     master netting arrangements.     ---------------------------------------------------------------------------- IFRIC 20 Stripping Costs in the January 1, 2013 There has been Production Phase of a no material Surface Mine establishes impact on when the costs incurred to adoption.     remove mine waste materials to gain access to mineral ore deposits during the production phase of a surface mine should lead to the recognition of an asset, and how that asset should be measured.     ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

3. Impact of Application of IFRS 11

Upon the application of IFRS 11, effective January 1, 2013 and with retrospective application to January 1, 2012, we reviewed and assessed the legal form and terms of contracts of our investments in joint arrangements. The application of IFRS 11 has changed the classification and subsequent accounting of our investment in Profertil S.A. and other joint arrangements, previously accounted for using the proportionate consolidation method. Under IFRS 11, Profertil S.A. and other joint arrangements are classified as joint ventures and our interest is accounted for using the equity method.

Three Six months months ended ended Impact of IFRS 11 on net earnings June 30, June 30, ---------------------------------------------------------------------------- 2012 2012 ---------------------------------------------------------------------------- Decrease in sales (62) (120) -------------------- Decrease in cost of product sold (43) (86) ---------------------------------------------------------------------------- Decrease in gross profit (19) (34) -------------------- Decrease in selling and general and administrative expenses (3) (6) -------------------- Decrease in other expenses (1) (1) -------------------- Decrease in other finance costs (1) (1) -------------------- Decrease in income taxes (5) (2) -------------------- Increase in earnings from associates and joint ventures (9) (24) ---------------------------------------------------------------------------- Impact on net earnings - - ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Impact of IFRS 11 on assets and liabilities June 30, 2012 ---------------------------------------------------------------------------- As previously As reported Adjustments restated ---------------------------------------------------------------------------- Current assets 8,269 (172) 8,097 ------------------------------------- Property, plant and equipment 3,014 (208) 2,806 ------------------------------------- Investments in associates and joint ventures 383 191 574 ------------------------------------- Other assets 54 - 54 ------------------------------------- Current liabilities 4,506 (112) 4,394 ------------------------------------- Long-term debt 1,607 (33) 1,574 ------------------------------------- Other liabilities 65 (1) 64 ------------------------------------- Deferred income tax liabilities 605 (43) 562 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Cash and cash equivalents 1,946 (33) 1,913 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Impact of IFRS 11 on assets and liabilities December 31, 2012 ---------------------------------------------------------------------------- As previously As reported Adjustments restated ---------------------------------------------------------------------------- Current assets 8,712 (172) 8,540 ------------------------------------- Property, plant and equipment 3,698 (214) 3,484 ------------------------------------- Investments in associates and joint ventures 382 245 627 ------------------------------------- Other assets 130 (31) 99 ------------------------------------- Current liabilities 5,647 (91) 5,556 ------------------------------------- Long-term debt 2,115 (46) 2,069 ------------------------------------- Other liabilities 80 (1) 79 ------------------------------------- Deferred income tax liabilities 618 (34) 584 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Cash and cash equivalents 726 (68) 658 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three months Six months ended ended Impact of IFRS 11 on cash flows June 30, June 30, ---------------------------------------------------------------------------- 2012 2012 ---------------------------------------------------------------------------- Increase in cash provided by operating activities 43 15 ------------------------ Decrease in cash used in investing activities 9 18 ------------------------ Decrease in cash provided by financing activities (7) (7) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

4. Business Acquisition

As described in our 2012 Annual Report, we have agreed to acquire certain agri-products assets of Viterra Inc. ("Viterra") from Glencore International plc ("Glencore") which acquired Viterra on December 17, 2012. Our purchase price, subject to adjustments, for the agri-products assets is Cdn$1.775-billion, including Viterra's 34 percent interest in a nitrogen facility located in Medicine Hat. On April 30, 2013, CF Industries Holdings Inc. ("CF"), holder of a 66 percent interest in the Medicine Hat facility, acquired Viterra's 34 percent interest from Glencore (the "CF transaction"). Following closing of the CF transaction, we received Cdn$939-million (U.S.$932-million), which is subject to adjustment for final determinations of amounts in accordance with our agreement with Glencore. Our acquisition of the agri-products assets from Viterra is subject to regulatory approval.

As partial funding for Glencore's acquisition of Viterra, we advanced the Cdn$1.775-billion (U.S.$1.801-billion) purchase price to Glencore on December 12, 2012. The advance, adjusted for foreign exchange translation and after deducting the amount received in the CF transaction and other adjustments, at June 30, 2013 is $762-million (December 31, 2012 - $1.792-billion). The advance is guaranteed by Glencore, secured by shares of Viterra, and does not bear interest. The advance is repayable by: i) the transfer of the agri-products assets to us or to third parties designated by us, in amounts allocated to the assets under our agreement with Glencore; and ii) cash payments for an adjustment to our purchase price of an amount equal to the after-tax operating cash flows from the business assets, and for working capital and other adjustments.

5.Other Expenses

Three months ended Six months ended Other expenses June 30, June 30, ---------------------------------------------------------------------------- 2013 2012 2013 2012 Restated Restated (note 3) (note 3) ---------------------------------------------------------------------------- Realized loss (gain) on derivative financial instruments - 12 (14) 24 ---------------------------------------- Unrealized loss (gain) on derivative financial instruments 3 (15) (4) (14) ---------------------------------------- Interest income (16) (19) (31) (35) ---------------------------------------- Foreign exchange loss 8 11 26 11 ---------------------------------------- Environmental remediation and asset retirement obligations 3 - 4 12 ---------------------------------------- Bad debt expense 21 16 26 24 ---------------------------------------- Potash profit and capital tax 8 8 12 13 ---------------------------------------- Other 16 (9) 10 - ---------------------------------------------------------------------------- 43 4 29 35 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

6. Earnings per Share

Three months ended Six months ended Attributable to equity holders of Agrium June 30, June 30, ---------------------------------------------------------------------------- 2013 2012 2013 2012 ---------------------------------------------------------------------------- Numerator ---------------------------------------------------------------------------- Net earnings for the period 749 860 890 1,013 ---------------------------------------------------------------------------- Denominator (millions) ---------------------------------------------------------------------------- Weighted average number of shares outstanding for basic and diluted earnings per share 149 158 149 158 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

7. Debt

December June 30, 31, ---------------------------------------------------------------------------- 2013 2012 Restated (note 3) ---------------------------------------------------------------------------- Total Unutilized Utilized Utilized ---------------------------------------------------------------------------- Short-term debt ------------------------------------------ Multi-jurisdictional facility expiring 2017 2,500 2,280 220 1,100 ------------------------------------------ European facilities expiring 2013 344 139 205 192 ------------------------------------------ South American facilities expiring 2013 - 2014 108 74 34 22 ---------------------------------------------------------------------------- 2,952 2,493 459 1,314 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Outstanding letters of credit 95 ------------------------------------------------------------------ Remaining capacity available 2,398 ------------------------------------------------------------------ ------------------------------------------------------------------ June 30, December 31, ---------------------------------------------------------------------------- 2013 2012 Restated (note 3) ---------------------------------------------------------------------------- Long-term debt ---------------------------------------------------------------------------- Floating rate bank loans due 2014 - 2015 57 106 -------------------------- Floating rate bank loans due 2013 - 460 -------------------------- 7.7% debentures due 2017 100 100 -------------------------- 6.75% debentures due 2019 500 500 -------------------------- 3.15% debentures due 2022 500 500 -------------------------- 3.5% debentures due 2023 500 - -------------------------- 7.8% debentures due 2027 125 125 -------------------------- 7.125% debentures due 2036 300 300 -------------------------- 6.125% debentures due 2041 500 500 -------------------------- 4.9% debentures due 2043 500 - -------------------------- Other 21 21 ---------------------------------------------------------------------------- 3,103 2,612 -------------------------- Unamortized transaction costs (37) (25) -------------------------- Current portion of long-term debt - (518) ---------------------------------------------------------------------------- 3,066 2,069 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

During the three months ended June 30, 2013, we increased the total capacity available under our multi-jurisdictional facility from $1.6-billion to $2.5-billion and extended the term by one year to 2017.

On May 28, 2013, we issued $500-million of 3.5 percent debentures due June 1, 2023 and $500-million of 4.9 percent debentures due June 1, 2043.

Our base shelf prospectus permits up to an additional $1.0-billion of common shares, preferred shares, subscription receipts, debt securities or units until April 2014. Issuance of further securities under the base shelf prospectus requires filing a prospectus supplement and is subject to availability of funding in capital markets.

8. Financial Instruments

Fair value of financial instruments Level 1 Level 2 Total ---------------------------------------------------------------------------- June 30, 2013 ---------------------------------------------------------------------------- Fair value through profit or loss ----------------------------- Cash and cash equivalents 494 - 494 ----------------------------- Foreign exchange derivative financial instruments (7) - (7) ----------------------------- Gas and power derivative financial instruments (6) 2 (4) ----------------------------- Available for sale 35 - 35 ---------------------------------------------------------------------------- June 30, 2012 ---------------------------------------------------------------------------- Fair value through profit or loss ----------------------------- Cash and cash equivalents 1,913 - 1,913 ----------------------------- Gas and power derivative financial instruments (24) 9 (15) ----------------------------- Available for sale 32 - 32 ---------------------------------------------------------------------------- December 31, 2012 ---------------------------------------------------------------------------- Fair value through profit or loss ----------------------------- Cash and cash equivalents 658 - 658 ----------------------------- Foreign exchange derivative financial instruments - 4 4 ----------------------------- Gas and power derivative financial instruments (15) - (15) ----------------------------- Available for sale 40 - 40 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

We determine fair value for financial instruments classified as Level 1 using independent quoted market prices for identical instruments in active markets. Fair value for financial instruments classified as Level 2 is estimated using quoted prices for similar instruments in active markets or prices for identical or similar instruments in markets that are not active, or using valuation techniques that are based on industry-accepted third-party models, which make maximum use of market-based inputs.

We determine the fair value of foreign exchange derivative contracts using the income approach. We determine the fair value of gas and power derivative contracts using the market approach. Inputs to fair value determinations include, but are not limited to, current spot prices and forward pricing curves for natural gas and power, current published interest rates and foreign currency exchange rates, market volatility, our own credit risk and counterparty credit risk.

We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or market liquidity generally drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changing the valuation technique used, are generally the cause of transfers between Level 1, Level 2 and Level 3. There have been no transfers between Level 1 and Level 2 fair value measurements in the reporting period ended June 30, 2013 (June 30, 2012 - no transfers). We do not measure any of our financial instruments using Level 3 inputs.

Fair value and carrying value of long-term debt June 30, 2013 ---------------------------------------------------------------------------- Carrying Fair value value ---------------------------------------------------------------------------- Long-term debt ------------------------ Debentures - amortized cost 3,197 3,025 ------------------------ Floating rate debt - amortized cost 78 78 ---------------------------------------------------------------------------- 3,275 3,103 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Fair value of long-term debt is determined based on comparable debt instruments. Carrying value of floating rate debt and all other financial instruments approximates fair value due to the short-term nature of the instruments.

9. Accumulated Other Comprehensive Income

Total accumulated Available for Foreign other sale financial currency Associates and comprehensive instruments translation joint ventures income (loss) ---------------------------------------------------------------------------- December 31, 2011 (1) 11 - 10 ---------------------------------------------------------------------------- Losses - (12) (2) (14) ---------------------------------------------------------------------------- June 30, 2012 (1) (1) (2) (4) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- December 31, 2012 - 74 (3) 71 ---------------------------------------------------------------------------- Gains (losses) 1 (243) 1 (241) ---------------------------------------------------------------------------- June 30, 2013 1 (169) (2) (170) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

10. Additional Information

Property, plant and equipment

During the six months ended June 30, 2013, we added $471-million to assets under construction at our Vanscoy Potash facility.

Dividends June 30, ---------------------------------------------------------------------------- 2013 Declared ------------------------------------------------- Paid to Effective Per share Total Shareholders Total ---------------------------------------------------------------------------- January 17, December 14, 2012 0.50 NA 2013 75 ---------------------------------------------------------------------------- February 22, 2013 0.50 75 April 18, 2013 74 ---------------------------------------------------------------------------- April 9, 2013 0.50 74 July 18, 2013 NA ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Share capital

During the six months ended June 30, 2013, we granted to officers and employees 395,759 Tandem Stock Appreciation Rights with a grant price of $101.13 and 193,398 Performance Share Units.

Our authorized share capital consists of unlimited common shares without par value and unlimited preferred shares.

Normal course issuer bid

During the three months ended June 30, 2013, we purchased one million shares for total consideration of $88-million under our normal course issuer bid ("NCIB"). From July 1, 2013 to July 31, 2013, we purchased one million shares for total consideration of $91-million. Under the NCIB, we may purchase for cancellation up to 5 percent of our currently issued and outstanding common shares until May 20, 2014. The actual number of shares purchased will be at Agrium's discretion and will depend on market conditions, share prices, Agrium's cash position and other factors.

11. Operating Segments

Three months ended Six months ended June 30, June 30, ---------------------------------------------------------------------------- 2013 2012 2013 2012 Restated Restated (note 3) (note 3) ---------------------------------------------------------------------------- Sales ---------------------------------------------------------------------------- Retail ---------------------------------------- Crop nutrients 2,485 2,359 3,287 3,394 ---------------------------------------- Crop protection products 1,848 1,727 2,634 2,561 ---------------------------------------- Seed 809 712 1,094 1,028 ---------------------------------------- Merchandise 142 157 262 287 ---------------------------------------- Services and other 279 264 425 400 ---------------------------------------------------------------------------- 5,563 5,219 7,702 7,670 ---------------------------------------------------------------------------- Wholesale ---------------------------------------- Nitrogen 641 696 1,023 1,044 ---------------------------------------- Potash 212 246 364 385 ---------------------------------------- Phosphate 211 224 373 413 ---------------------------------------- Product purchased for resale 329 385 681 783 ---------------------------------------- Ammonium sulfate and other 103 95 183 174 ---------------------------------------------------------------------------- 1,496 1,646 2,624 2,799 ---------------------------------------------------------------------------- Advanced Technologies 207 178 340 313 ---------------------------------------------------------------------------- Other (250) (271) (426) (439) ---------------------------------------------------------------------------- 7,016 6,772 10,240 10,343 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Inter-segment sales ---------------------------------------------------------------------------- Retail 7 9 11 15 ---------------------------------------- Wholesale 224 239 388 375 ---------------------------------------- Advanced Technologies 19 23 27 49 ---------------------------------------------------------------------------- 250 271 426 439 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net earnings ---------------------------------------------------------------------------- Retail 562 556 534 613 ---------------------------------------- Wholesale 453 628 780 957 ---------------------------------------- Advanced Technologies 16 14 16 9 ---------------------------------------- Other 36 20 (31) (112) ---------------------------------------------------------------------------- Earnings before finance costs and income taxes 1,067 1,218 1,299 1,467 ---------------------------------------- Finance costs related to long-term debt 21 22 43 44 ---------------------------------------- Other finance costs 21 9 39 19 ---------------------------------------------------------------------------- Earnings before income taxes 1,025 1,187 1,217 1,404 ---------------------------------------- Income taxes 278 327 329 389 ---------------------------------------------------------------------------- Net earnings 747 860 888 1,015 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
June 30, December 31, ---------------------------------------------------------------------------- 2013 2012 Restated (note 3) ---------------------------------------------------------------------------- Total assets -------------------------- Retail 9,258 8,338 -------------------------- Wholesale 4,606 4,262 -------------------------- Advanced Technologies 498 545 -------------------------- Other 1,445 2,660 ---------------------------------------------------------------------------- 15,807 15,805 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AGRIUM INC.     Supplemental Information 1a Results by Segment (Millions of U.S. dollars) (Unaudited) Three months ended June 30, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Advanced Retail Wholesale Technologies Other Total ---------------------------------------------------------------------------- Sales - external 5,556 1,272 188 - 7,016 - inter-segment 7 224 19 (250) - ---------------------------------------------------------------------------- Total sales 5,563 1,496 207 (250) 7,016 Cost of product sold 4,421 1,010 168 (305) 5,294 ---------------------------------------------------------------------------- Gross profit 1,142 486 39 55 1,722 ---------------------------------------------------------------------------- Gross profit (%) 21 32 19 25 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Selling 538 8 14 (1) 559 General and administrative 31 22 10 5 68 Earnings from associates and joint ventures (3) (12) - - (15) Other expenses (income) 14 15 (1) 15 43 ---------------------------------------------------------------------------- EBIT (1) 562 453 16 36 1,067 EBITDA (2) 619 517 24 39 1,199 Adjusted EBITDA(2) 619 525 24 39 1,207 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three months ended June 30, ---------------------------------------------------------------------------- 2012 (3) ---------------------------------------------------------------------------- Advanced Retail Wholesale Technologies Other Total ---------------------------------------------------------------------------- Sales - external 5,210 1,407 155 - 6,772 - inter-segment 9 239 23 (271) - ---------------------------------------------------------------------------- Total sales 5,219 1,646 178 (271) 6,772 Cost of product sold 4,115 994 142 (330) 4,921 ---------------------------------------------------------------------------- Gross profit 1,104 652 36 59 1,851 ---------------------------------------------------------------------------- Gross profit (%) 21 40 20 27 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Selling 520 9 14 (3) 540 General and administrative 33 10 11 48 102 (Earnings) loss from associates and joint ventures (2) (11) (1) 1 (13) Other (income) expenses (3) 16 (2) (7) 4 ---------------------------------------------------------------------------- EBIT (1) 556 628 14 20 1,218 EBITDA (2) 605 677 20 24 1,326 Adjusted EBITDA(2) 605 686 20 24 1,335 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

(1) Earnings (loss) before finance costs and income taxes.

(2) Certain measures presented in this table are not recognized measures under IFRS and our method of calculation may not be directly comparable to similar measures presented by other companies. We believe these supplemental non-IFRS measures provide useful information to management, investors and securities analysts in measuring our operating and financial performance and facilitating comparison from period to period as well as to peers and industry averages. Refer to Supplemental Information 6 for further explanations.

(3) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures.

AGRIUM INC.     Supplemental Information 1b Results by Segment (Millions of U.S. dollars) (Unaudited) Six months ended June 30, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Advanced Retail Wholesale Technologies Other Total ---------------------------------------------------------------------------- Sales - external 7,691 2,236 313 - 10,240 - inter-segment 11 388 27 (426) - ---------------------------------------------------------------------------- Total sales 7,702 2,624 340 (426) 10,240 Cost of product sold 6,184 1,810 275 (467) 7,802 ---------------------------------------------------------------------------- Gross profit 1,518 814 65 41 2,438 ---------------------------------------------------------------------------- Gross profit (%) 20 31 19 24 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Selling 927 18 28 (5) 968 General and administrative 56 37 23 54 170 (Earnings) loss from associates and joint ventures (4) (26) 1 1 (28) Other expenses (income) 5 5 (3) 22 29 ---------------------------------------------------------------------------- EBIT (1) 534 780 16 (31) 1,299 EBITDA (2) 644 892 30 (25) 1,541 Adjusted EBITDA(2) 644 909 30 (25) 1,558 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Six months ended June 30, ---------------------------------------------------------------------------- 2012 (3) ---------------------------------------------------------------------------- Advanced Retail Wholesale Technologies Other Total ---------------------------------------------------------------------------- Sales - external 7,655 2,424 264 - 10,343 - inter-segment 15 375 49 (439) - ---------------------------------------------------------------------------- Total sales 7,670 2,799 313 (439) 10,343 Cost of product sold 6,139 1,801 256 (489) 7,707 ---------------------------------------------------------------------------- Gross profit 1,531 998 57 50 2,636 ---------------------------------------------------------------------------- Gross profit (%) 20 36 18 25 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Selling 870 18 27 (6) 909 General and administrative 63 21 24 151 259 Earnings from associates and joint ventures (4) (27) (2) (1) (34) Other (income) expenses (11) 29 (1) 18 35 ---------------------------------------------------------------------------- EBIT (1) 613 957 9 (112) 1,467 EBITDA (2) 706 1,040 22 (104) 1,664 Adjusted EBITDA(2) 706 1,048 22 (104) 1,672 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

(1) Earnings (loss) before finance costs and income taxes.

(2) Certain measures presented in this table are not recognized measures under IFRS and our method of calculation may not be directly comparable to similar measures presented by other companies. We believe these supplemental non-IFRS measures provide useful information to management, investors and securities analysts in measuring our operating and financial performance and facilitating comparison from period to period as well as to peers and industry averages. Refer to Supplemental Information 6 for further explanations.

(3) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures.

AGRIUM INC.     Supplemental Information 2 Product Lines (Millions of U.S. dollars) (Unaudited) Three months ended June 30, ---------------------------------------------------------------------------- 2013 2012 (3) ---------------------------------------------------------------------------- Cost of Cost of product Gross product Gross Sales sold (1) profit Sales sold (1) profit ---------------------------------------------------------------------------- Retail (2) Crop nutrients 2,485 2,061 424 2,359 1,959 400 Crop protection products 1,848 1,442 406 1,727 1,327 400 Seed 809 669 140 712 587 125 Merchandise 142 119 23 157 125 32 Services and other 279 130 149 264 117 147 ---------------------------------------------------------------------------- 5,563 4,421 1,142 5,219 4,115 1,104 ---------------------------------------------------------------------------- Wholesale Nitrogen 641 347 294 696 284 412 Potash 212 92 120 246 93 153 Phosphate 211 184 27 224 182 42 Product purchased for 329 321 8 385 370 15 resale Ammonium sulfate and other 103 66 37 95 65 30 ---------------------------------------------------------------------------- 1,496 1,010 486 1,646 994 652 ---------------------------------------------------------------------------- Advanced Technologies Turf and ornamental 109 87 22 105 87 18 Agriculture 98 81 17 73 55 18 ---------------------------------------------------------------------------- 207 168 39 178 142 36 ---------------------------------------------------------------------------- Other inter- segment (250) (305) 55 (271) (330) 59 eliminations ---------------------------------------------------------------------------- Total 7,016 5,294 1,722 6,772 4,921 1,851 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen 50 36 14 47 28 19 Product purchased for 32 30 2 24 22 2 resale ---------------------------------------------------------------------------- 82 66 16 71 50 21 ---------------------------------------------------------------------------- Total Wholesale including equity accounted joint ventures 1,578 1,076 502 1,717 1,044 673 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AGRIUM INC.     Supplemental Information 2 Product Lines (Millions of U.S. dollars) (Unaudited) Six months ended June 30, ---------------------------------------------------------------------------- 2013 2012 (3) ---------------------------------------------------------------------------- Cost of Cost of product Gross product Gross Sales sold (1) profit Sales sold (1) profit ---------------------------------------------------------------------------- Retail (2) Crop nutrients 3,287 2,742 545 3,394 2,839 555 Crop protection products 2,634 2,100 534 2,561 2,038 523 Seed 1,094 910 184 1,028 859 169 Merchandise 262 217 45 287 232 55 Services and other 425 215 210 400 171 229 ---------------------------------------------------------------------------- 7,702 6,184 1,518 7,670 6,139 1,531 ---------------------------------------------------------------------------- Wholesale Nitrogen 1,023 556 467 1,044 477 567 Potash 364 160 204 385 145 240 Phosphate 373 309 64 413 308 105 Product purchased for 681 667 14 783 757 26 resale Ammonium sulfate and other 183 118 65 174 114 60 ---------------------------------------------------------------------------- 2,624 1,810 814 2,799 1,801 998 ---------------------------------------------------------------------------- Advanced Technologies Turf and ornamental 178 145 33 184 153 31 Agriculture 162 130 32 129 103 26 ---------------------------------------------------------------------------- 340 275 65 313 256 57 ---------------------------------------------------------------------------- Other inter- segment (426) (467) 41 (439) (489) 50 eliminations ---------------------------------------------------------------------------- Total 10,240 7,802 2,438 10,343 7,707 2,636 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen 89 60 29 83 52 31 Product purchased for 63 60 3 47 44 3 resale ---------------------------------------------------------------------------- 152 120 32 130 96 34 ---------------------------------------------------------------------------- Total Wholesale including equity accounted joint ventures 2,776 1,930 846 2,929 1,897 1,032 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

(1) Includes depreciation and amortization.

(2) International Retail sales were $911-million (2012 - $814-million) and gross profit was $132-million (2012 - $130-million) for the three months ended June 30. International Retail sales were $1,477-million (2012 - $1,399-million) and gross profit was $230-million (2012 - $239-million) for the six months ended June 30.

(3) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures.

AGRIUM INC.     Supplemental Information 3a Selected Volumes and Sales Prices (Unaudited) Three months ended June 30, -------------------------------------------------------- 2013 -------------------------------------------------------- Cost of Sales Selling product tonnes price sold (000's) ($/tonne) ($/tonne) -------------------------------------------------------- Retail Crop nutrients Domestic 3,407 616 International 684 566 -------------------------------------------------------- Total crop nutrients 4,091 607 504 -------------------------------------------------------- -------------------------------------------------------- Wholesale Nitrogen Domestic Ammonia 419 743 Urea 377 547 Other 307 406 -------------------------------------------------------- Total nitrogen 1,103 582 315 -------------------------------------------------------- Potash Domestic 243 470 International 301 324 -------------------------------------------------------- Total potash 544 389 168 -------------------------------------------------------- Phosphate 317 667 584 Product purchased for resale 710 462 451 Ammonium sulfate 98 451 198 Other 115 -------------------------------------------------------- Total Wholesale 2,887 518 350 -------------------------------------------------------- -------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen International 110 455 328 Product purchased for resale 84 381 357 -------------------------------------------------------- 194 423 341 -------------------------------------------------------- Total Wholesale including equity accounted joint ventures 3,081 512 349 -------------------------------------------------------- -------------------------------------------------------- AGRIUM INC.     Supplemental Information 3a Selected Volumes and Sales Prices (Unaudited) Three months ended June 30, ---------------------------------------------------------------------------- 2013 2012 (1) ---------------------------------------------------------------------------- Cost of Sales Selling product Margin tonnes price sold Margin ($/tonne) (000's) ($/tonne) ($/tonne) ($/tonne) ---------------------------------------------------------------------------- Retail Crop nutrients Domestic 3,209 634 International 529 612 ---------------------------------------------------------------------------- Total crop nutrients 103 3,738 631 524 107 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale Nitrogen Domestic Ammonia 420 680 Urea 418 636 Other 378 387 ---------------------------------------------------------------------------- Total nitrogen 267 1,216 574 235 339 ---------------------------------------------------------------------------- Potash Domestic 285 539 International 227 406 ---------------------------------------------------------------------------- Total potash 221 512 480 181 299 ---------------------------------------------------------------------------- Phosphate 83 313 713 581 132 Product purchased for resale 11 806 476 457 19 Ammonium sulfate 253 85 443 242 201 Other 118 ---------------------------------------------------------------------------- Total Wholesale 168 3,050 540 326 214 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen International 127 81 567 340 227 Product purchased for resale 24 60 410 378 32 ---------------------------------------------------------------------------- 82 141 501 356 145 ---------------------------------------------------------------------------- Total Wholesale including equity accounted joint ventures 163 3,191 538 327 211 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

(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) Six months ended June 30, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Cost of Sales Selling product tonnes price sold Margin (000's) ($/tonne) ($/tonne) ($/tonne) ---------------------------------------------------------------------------- Retail Crop nutrients Domestic 4,468 607 International 1,031 557 ---------------------------------------------------------------------------- Total crop nutrients 5,499 598 499 99 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale Nitrogen Domestic Ammonia 612 700 Urea 699 545 Other 538 397 ---------------------------------------------------------------------------- Total nitrogen 1,849 553 301 252 ---------------------------------------------------------------------------- Potash Domestic 441 471 International 481 325 ---------------------------------------------------------------------------- Total potash 922 395 174 221 ---------------------------------------------------------------------------- Phosphate 549 680 564 116 Product purchased for resale 1,473 462 453 9 Ammonium sulfate 170 444 193 251 Other 209 ---------------------------------------------------------------------------- Total Wholesale 5,172 507 350 157 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen International 188 473 319 154 Product purchased for resale 163 387 369 18 ---------------------------------------------------------------------------- 351 433 342 91 ---------------------------------------------------------------------------- Total Wholesale including equity accounted joint ventures 5,523 503 350 153 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AGRIUM INC.     Supplemental Information 3b Selected Volumes and Sales Prices (Unaudited) Six months ended June 30, ---------------------------------------------------------------------------- 2012 (1) ---------------------------------------------------------------------------- Cost of Sales Selling product tonnes price sold Margin (000's) ($/tonne) ($/tonne) ($/tonne) ---------------------------------------------------------------------------- Retail Crop nutrients Domestic 4,590 627 International 859 603 ---------------------------------------------------------------------------- Total crop nutrients 5,449 623 521 102 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale Nitrogen Domestic Ammonia 646 624 Urea 689 599 Other 609 376 ---------------------------------------------------------------------------- Total nitrogen 1,944 537 245 292 ---------------------------------------------------------------------------- Potash Domestic 447 550 International 344 403 ---------------------------------------------------------------------------- Total potash 791 486 182 304 ---------------------------------------------------------------------------- Phosphate 556 742 554 188 Product purchased for resale 1,634 479 463 16 Ammonium sulfate 171 432 221 211 Other 198 ---------------------------------------------------------------------------- Total Wholesale 5,294 529 340 189 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Wholesale equity accounted joint ventures: Nitrogen International 158 522 327 195 Product purchased for resale 121 390 365 25 ---------------------------------------------------------------------------- 279 465 343 122 ---------------------------------------------------------------------------- Total Wholesale including equity accounted joint ventures 5,573 526 341 185 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

(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 June 30, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Cost of General product and sold Selling administrative Total ---------------------------------------------------------------------------- Retail 2 52 3 57 Wholesale Nitrogen 21 Potash 17 Phosphate 17 Product purchased for resale - Ammonium sulfate and other 2 ---------------------------------------------------------------------------- 57 - 7 64 Advanced Technologies 5 - 3 8 Other - - 3 3 ---------------------------------------------------------------------------- Total 64 52 16 132 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Six months ended June 30, ---------------------------------------------------------------------------- 2013 ---------------------------------------------------------------------------- Cost of General product and sold Selling administrative Total ---------------------------------------------------------------------------- Retail 3 101 6 110 Wholesale Nitrogen 36 Potash 28 Phosphate 31 Product purchased for resale - Ammonium sulfate and other 3 ---------------------------------------------------------------------------- 98 - 14 112 Advanced Technologies 8 - 6 14 Other - - 6 6 ---------------------------------------------------------------------------- Total 109 101 32 242 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AGRIUM INC.     Supplemental Information 4 Depreciation and Amortization (Millions of U.S. dollars) (Unaudited) Three months ended June 30, ---------------------------------------------------------------------------- 2012 (1) ---------------------------------------------------------------------------- Cost of General product and sold Selling administrative Total ---------------------------------------------------------------------------- Retail 2 40 7 49 Wholesale Nitrogen 19 Potash 13 Phosphate 15 Product purchased for resale 1 Ammonium sulfate and other 1 ---------------------------------------------------------------------------- 49 - - 49 Advanced Technologies 3 - 3 6 Other - - 4 4 ---------------------------------------------------------------------------- Total 54 40 14 108 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Six months ended June 30, ---------------------------------------------------------------------------- 2012 (1) ---------------------------------------------------------------------------- Cost of General product and sold Selling administrative Total ---------------------------------------------------------------------------- Retail 3 78 12 93 Wholesale Nitrogen 33 Potash 19 Phosphate 27 Product purchased for resale 1 Ammonium sulfate and other 2 ---------------------------------------------------------------------------- 82 - 1 83 Advanced Technologies 7 - 6 13 Other - - 8 8 ---------------------------------------------------------------------------- Total 92 78 27 197 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

(1) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures.

AGRIUM INC.     Supplemental Information 5 (1) Selected Financial Measures (Millions of U.S. dollars, unless stated otherwise) (Unaudited) Rolling four quarters ended June 30, ---------------------------------------------------------------------------- 2013 2012 ---------------------------------------------------------------------------- Consolidated Consolidated Retail Agrium Retail Agrium (2) ---------------------------------------------------------------------------- Return on operating capital employed (%) 15 21 18 29 Return on capital employed (%) 8 15 9 19 Average non-cash working capital to sales (%) 20 16 20 16 Operating coverage ratio (%) 72 52 70 48 EBITDA to sales (%) 8 15 8 17 June 30, ---------------------------------------------------------------------------- 2013 2012 ---------------------------------------------------------------------------- Consolidated Consolidated Retail Agrium Retail Agrium (2) ---------------------------------------------------------------------------- Non-cash working capital 2,737 3,140 2,524 2,613 Six months ended June 30, ---------------------------------------------------------------------------- 2013 2012 ---------------------------------------------------------------------------- Retail Retail ---------------------------------------- ------------ Comparable store sales (%) (3) 15 Normalized comparable store sales (%) 1 13 Domestic measures Rolling four quarters ended June 30, ---------------------------------------------------------------------------- 2013 2012 ---------------------------------------------------------------------------- Retail Retail ---------------------------------------- ------------ Return on operating capital employed (%) 21 22 Return on capital employed (%) 10 11 EBITDA to sales (%) 9 9

(1) Certain measures presented in this table are not recognized measures under IFRS and our method of calculation may not be directly comparable to similar measures presented by other companies. We believe these supplemental non-IFRS measures provide useful information to management, investors and securities analysts in measuring our operating and financial performance and facilitating comparison from period to period as well as to peers and industry averages. Refer to Supplemental Information 6 for further explanations.

(2) Restated for the application of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures.

AGRIUM INC.     Supplemental Information 6 Accompanying Notes to Supplemental Information ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- IFRS Financial Measure Definition ---------------------------------------------------------------------------- Average non- Rolling four quarter average non-cash working capital cash working divided by sales.     capital to sales Operating Selling, general and administrative expenses, earnings from coverage ratio associates and joint ventures and other expenses, divided by gross profit.     Non-cash Current assets less current liabilities, excluding cash and working cash equivalents, advance on acquisition of Viterra Inc., capital short-term debt, current portion of long-term debt and current assets and liabilities of discontinued operations. Comparable A store becomes part of the comparable base once it is in store sales operation or owned for 12 months. When a store is closed, sales are considered absorbed by existing stores so the closed stores are not removed from the comparable base.     ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Usefulness of Additional or Definition Non-IFRS Financial Measure ---------------------------------------------------------------------------- Additional IFRS Financial Measure ---------------------------------------------------------------------------- Return on Last 12 months' EBIT less Used to measure operating operating income taxes at a tax rate of performance and efficiency of capital 27 percent (2012 - 28 percent)our capital allocation employed: divided by rolling four process.     Consolidated quarter average operating Agrium 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 Last 12 months' EBIT less Used to measure operating capital income taxes at a tax rate of performance and efficiency of employed: 27 percent (2012 - 28 percent)our capital allocation Consolidated divided by rolling four process.     Agrium quarter average capital employed. Capital employed includes operating capital employed, intangibles and goodwill.     ---------------------------------------------------------------------------- Non-IFRS Financial Measure ---------------------------------------------------------------------------- Return on Last 12 months' EBIT less Used to measure operating operating income taxes at a tax rate of performance and efficiency of capital 27 percent (2012 - 28 percent)our capital allocation employed: divided by rolling four process.     Retail, Retail quarter average operating domestic 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 Last 12 months' EBIT less Used to measure operating capital income taxes at a tax rate of performance and efficiency of employed: 27 percent (2012 - 28 percent)our capital allocation Retail, Retail divided by rolling four process.     domestic quarter average capital employed. Capital employed includes operating capital employed, intangibles and goodwill.     EBITDA to sales Earnings (loss) before financeUsed to measure operating costs, income taxes, performance earnings and cash depreciation and amortization flow we generate from each divided by sales.     dollar of sales.     Normalized Comparable store sales Used to highlight the comparable normalized by using published performance of our existing store sales nitrogen, phosphate and potashstores by measuring the change ("NPK") benchmark prices and in sales for such stores for a adjusting current year prices period over the comparable, to reflect pricing from the prior-year period of previous year based on our equivalent length.     percent of NPK utilization by product.     EBITDA Earnings (loss) before financeUsed to measure operating costs, income taxes, performance.     depreciation and amortization.     Adjusted EBITDA Earnings (loss) before financeUsed to measure operating costs, income taxes, performance.     depreciation and amortization and before finance costs, income taxes, depreciation and amortization of joint ventures.     ---------------------------------------------------------------------------- ----------------------------------------------------------------------------