Agrium Inc.

TSX : AGU
NYSE : AGU


Agrium Inc.

August 07, 2013 20:46 ET

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.                                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contact Information

  • Agrium Inc.
    Richard Downey
    Vice President, Investor & Corporate Relations
    (403) 225-7357

    Agrium Inc.
    Todd Coakwell
    Director, Investor Relations
    (403) 225-7437

    Agrium Inc.
    Louis Brown
    Analyst, Investor Relations
    (403) 225-7761
    www.agrium.com