Franco-nevada Corporation · TSX:FNV
Franco-nevada — FY2021 Earnings Presentation
15 slides from Franco-nevada's earnings presentation, Mar 10, 2022
Slide 1: Franco-Nevada 2021 Results Presentation
- Franco(*)Nevada 7 | FNV: TSX | NYSE
Slide 2: Cautionary Statement: Forward Looking Statements
C A U T I O N A R Y S TAT E M E N T Forward Looking Statements This presentation contains “forward looking information” and “forward looking statements” within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, whi
Slide 3: 2021 Performance vs Guidance
2 0 2 1 P E R F O R M A N C E V S G U I D A N C E Q3 2021 2020 2021 2021 Revised Actual Guidance1 Actual Guidance1 Gold and Gold Equivalent Ounces Sold from Mining 522k 555k to 585k 590k to 615k 611k Assets2 Energy Revenue $92M $115M to $135M $195M to $205M $210M Exceeded Revised Energy Guidance H A
Slide 4: Total GEOs Sold: Quarterly and Annual Breakdown
T O TA L G E O s S O L D Quarterly Breakdown Annual Breakdown (GEOs1 000’s) (GEOs1 (000’s) Record year as 200 800 portfolio 180 700 continues to 160 600 perform 140 120 500 +27% increase in 100 400 GEOs1 over 2020 80 300 60 200 40 20 100 - - Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2017 2018 2019 202
Slide 5: Strong commodity prices for the year
Y E A R - O V E R - Y E A R AV E R A G E P R I C E C H A N G E S Q4 2021 Year End 2021 Strong Gold - (4.2%) + 1.7% commodity Silver - (4.4%) + 22.5% prices for the Platinum + 6.3% + 23.4% year Palladium - (17.6%) + 9.3% Iron Ore 62% Fe CFR China - (17.6%) + 49.5% Edmonton Light + 86.3% + 75.6% West
Slide 6: Revenue and Adjusted EBITDA Performance
R E V E N U E A N D A D J U S T E D E B I T D A P E R F O R M A N C E $400 $1,300 $1,400 Portfolio $350 $1,200 performing well $328 $1,092 $305 $1,020 $300 $270 $1,000 Benefit of $254 recovery in Year End $ (milllions) $250 $840 Q4 $ (millions) $800 $200 energy prices $600 $150 $400 82.3% margin1 in
Slide 7: Key Financial Metrics Trend
K E Y F I N A N C I A L M E T R I C S T R E N D Q4 2021 Q4 2020 Variance 2021 2020 Variance Average Gold Price ($/oz) $1,795 $1,873 (4.2%) $1,800 $1,770 1.7% Gold Equivalent Ounces (GEOs)1 182,543 162,533 12.3% 728,237 573,347 27.0% Revenue $327.7 $304.5 7.6% $1,300.0 $1,020.2 27.4% Adjusted EBITDA1
Slide 8: Revenue Diversification: Diversified with Low Risk
R E V E N U E D I V E R S I F I C AT I O N Diversified with Low Risk (2021 Revenue) Rest of First World Cobre Panama Diversified Quantum 9% 18% Assets 18% 23% Canada & Central U.S. Other America & 35% Other Antapaccay 41% Glencore Mexico 46% 9% 9% PGM Commodity 24% Geography Assets Operator 6% Gold
Slide 9: Growing GEO Margin
G R O W I N G G E O M A R G I N 2,000 1,800 1,800 $1,493 $1,555 1,600 Business model 1,600 1,400 benefits from rise 1,400 1,200 in commodity Average Gold Price US $ Cash Cost Per GEO US$ $1,150 1,200 $1,002 $1,050 1,000 prices with 1,000 800 consistent cost 800 structure 600 600 400 400 200 $255 $27
Slide 10: Cost Efficient and Scalable
C O S T E F F I C I E N T A N D S C A L A B L E $400 Corporate $350 Revenue Administration costs and stock $300 compensation $250 expenses less $200 than 3% of revenue in 2021 $150 $100 $50 G&A $- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FNV: TSX | NYSE | 10
Slide 11: Guidance
G U I D A N C E 2021 Actual 2022 Guidance1 2026 Outlook1 728,237 680,000-740,000 765,000-825,000 GEOs Total + Record GEOs in 2021 • Assumes $85/bbl WTI oil prices and $3.75/mcf + Growth from Precious Metal assets + Energy revenue guidance exceeded Henry Hub gas + New mines – Rosemont/Copper World +
Slide 12: CRA Audit
C R A A U D I T ( 2 0 1 2 - 2 0 1 7 ) Taxation Years Potential Income Potential Interest & Reassessed Tax Payable1 Penalties1,4,5 Canadian Domestic Tax Matters6 2014, 2015, 2016 $9.0M (C$11.4M)2 $2.4M (C$2.9M) Transfer Pricing 2013, 2014, 2015, 2016 $23.6M (C$29.9M)3 $19.7M (C$24.8M) (Mexican Subsid
Slide 13: Available Capital
AVA I L A B L E C A P I TA L Available capital3 Cash and cash equivalents1 Credit Facilities1, 2 $1.6B ≈$1.1B DEBT FREE $539.3M 1. As at December 31, 2021 2. Facilities include $1B Corporate, $100M Barbados 3. Funding commitments subsequent to December 31, 2021 will be funded with cash flow from ope
Slide 14: Thank You for Your Interest in Franco-Nevada
THANK YOU FOR YOUR INTEREST IN Leading Low-risk Diversified Growth track record business model portfolio and optionality www.FRANCO-NEVADA.com TSX: FNV | NYSE: FNV
Slide 15: Appendix – GEOs and Non-GAAP Measures
A P P E N D I X – G E O S A N D For the three months ended For the year ended N O N - G A A P M E A S U R E S Adjusted Net Income December 31, December 31, (expressed in millions, except per share amounts) 2021 2020 2021 2020 Net income $ 220.9 $ 176.7 $ 733.7 $ 326.2 1. Starting in Q4 2021, revenue