Franco-nevada Corporation · TSX:FNV
Franco-nevada — Investor Presentation (December 2022)
38 slides from Franco-nevada's investor presentation, December 2022
Slide 1: Corporate Presentation December 2022
A Franco(*)Nevada CORPORATE MW . FNV: TSX | NYSE PRESENTATION DECEMBER 2022
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Forward Looking Statements This presentation contains “forward looking information” and “forward looking statements” within the meaning of applicable Canadan securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include,
Slide 3: The Gold Investment That Works
THE GOLD INVESTMENT THAT WORKS Franco-Nevada is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash flow producing assets. oO & & & Leading Low-risk Diversified Growth track record business model portfolio and optionality Franco Nevada SE |3
Slide 4: Shareholder Returns: Leading Track Record
SHAREHOLDER RETURNS Leading Track Record (CAGR Since FNV Inception" 2 3) Franco-Nevada (FNV) - US$ basis Po Nsc80 S&P 500 fe Gold Bullion ETF || Barclays US Aggregate Bond GDxX (index of mostly gold miners) 4% 0% 4% 8% 12% 16% 20% A lower-risk gold investment to hedge | against market volatility NYS
Slide 5: Partnership Success
PARTNERSHIP SUCCESS Royalty and stream financing that provides long-term alignment and financial flexibility. Lundin Mining: Detour Lake: Candelaria Acquisition A Partnership Success Story Avie. > 0:00/6:11 Industry-Leading Operators 2, e Teck FIRST QUANTUM GLENCORE lundin mining BARRICK Newmont. nN
Slide 6: ESG Leadership
&) ESG LEADERSHIP Our ESG Focus Top ESG Rankings R ‘bl Desnnartes QD sesmnarres ‘esponsible os Sein Capital Allocation ESG “| ESG INDUSTRY REGIONAL (TOP RATED g TOP RATED Community Contributions Good Governance & Shareholder Alignment MSCI Corporate ESG ESG RATINGS Fostering Diversity ccc| 8 | oe [e
Slide 7: Business Model
Slide 8: Business Model Advantages
®| BUSINESS MODEL ADVANTAGES Optionality Potential for exploration success on approximately 65,700 km? Focus on Growth Management not occupied with operational decisions Free Cash-Flow Business Not exposed to capital calls High Margins & Low Overhead Strong cash generation throughout the commodity c
Slide 9: Financing Successful Mines
FINANCING SUCCESSFUL MINES Alignment with partners for a win-win solution Support leading operators through long-term partnership Technical team with strong track record identifying successful projects Partnership Approach M&A Financing TERANGA GOLD CORPORATION KLONDEX Te, MINES LTD Bets) lundin min
Slide 10: Why We Are Different
WHY WE ARE DIFFERENT Shareholder Alignment Financial Flexibility Committed to high share ownership Avoiding long-term debt and and low G&A - treating shareholder paying progressive and funds as our own Cyclical Investing Board and management have a patient approach to investing in cyclical markets s
Slide 11: Asset Portfolio
Ze On) Asset Portfolio COBRE PANAMA
Slide 12: Our Portfolio
Yee Brucejack orn v ¥ . . v + x, v ‘Weyburn Unit vy" eS Lake Carol Lake . S i Homo Y= yy BStillwater Sudbury: Kirkland Lake Marigold, Gast *, ary arcellus ol a Sass ts = y_ Permian Basin mw Haynesville "Guadalupe-Palmarejo Cobre Panama = Our Portfolio ’ 416 TOTAL Antamina 113 Precious Metals Diversi
Slide 13: Core Precious Metal Streams Outperforming
) CORE PRECIOUS METAL STREAMS OUTPERFORMING Antamina $610M investment 2021 revenue: $94M Mine life potential': 30+ years Payback?: 71% Silver production has exceeded expectations? Antapaccay $500M investment 2021 revenue: $112M Mine life potential': 30+ years Payback: 109% Coroccohuayco deposit to e
Slide 14: Long-Life Assets
®| LONG-LIFE ASSETS Growing reserves and reserve lives Long-duration portfolio increases optionality ont. id and Yamana Franco-Nevada Int. Gold Producers Franco &)Nevada
Slide 15: Revenue Diversification
REVENUE DIVERSIFICATION Diversified with Low Risk (YTD 2022 Revenue) Operator 9% Vale i Fe Coeur 6% 5% 70% from 91% from Asset Operator Precious Metals Americas Diversification Diversification Other Mining 2% 1% Commodity Geography Candelaria 1. YTD 2022 Revenue as at September 30, 2022 Franco Nevad
Slide 16: Royalty Optionality
&) ROYALTY OPTIONALITY Proven & Probable Mineral Reserves (Mo7) Caleulation includes depletion 120 100 80 60 40 20 2007 Gold Reserves? at time of IPO IPO $1.2B paid for portfolio 2008 - 2021 re >$1.8B° nue to FNV from portfolio >42 Moz gold Reserves increase at no cost >3x increase! 1 2. Total gold
Slide 17: Increasing Profitability
INCREASING PROFITABILITY Adjusted EBITDA Margin! of 84.8% and Adjusted Net Income Margin! of 53.5% YTD 2022 1s a 200 400 600 800 1,000 1,200 1,400 US $ (Millions) EG&A = Cost of Sales m Depletion = Taxes/Other m Profit Franco Nevada Ww
Slide 18: Portfolio Addition: Magino
Slide 19: Magino 2% NSR Transaction Highlights
®| MAGINO 2% NSR TRANSACTION HIGHLIGHTS US$52.5M 2% royalty acquisition, plus US$10M equity private placement Project under construction 70% complete as of September 30, providing nearterm GEO growth in 2023 Long lived project with large resource (4 Moz Au M&l resource and 0.5 Moz Au inferred resour
Slide 20: Candelaria
CANDELARIA
Slide 21: Track Record
&) TRACK RECORD GEOs! Revenue Market Capitalization? (000's) (US$ Millions) (US$ Billions) 800 1,400 30 700 1,200 25 600 1,000 20 500 800 400 400 15 300 10 200 | | | 400 " ~aitlll tll THT men afl ‘08 ‘09 10 11 12 13 14 15 16 17 18 19 '20 (21 ‘08 ‘09 ‘10 11 12 13 14:15 16 "17 "18 19 '20 '21 08 ‘09 10
Slide 22: Progressive & Sustainable Dividends
&) PROGRESSIVE & SUSTAINABLE DIVIDENDS $ (Millions) per annum Dividends Paid US we eS S O21 Dividends Paid $120 $100 $60 $40 | $20 I | ; wl 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022° —— Gold Price Gold Price US $ US$0.32/share (Quarterly dividend starting Q1/22) 15th
Slide 23: Outperforming Bull & Bear Markets
&) OUTPERFORMING BULL & BEAR MARKETS 40% 20% (20%) (40%) 32% 14% 1% “ [| (14%) (33%) Bull Market Bear Market (2008 - 2012) (2013 - 2015) Im Franco-Nevada (US$) I Gold snated period 20% 12% af Bull Market (2016 - Present) m@ Gpx' Franco &)Nevada
Slide 24: Antamina
ANTAMINA
Slide 25: FNV: TSX | NYSE | 25
+ - + + - + + + + + + + + - + + + - + - FNV: TSX | NYSE | 25
Slide 26: Strong Growth Outlook
STRONG GROWTH OUTLOOK Cobre Panama ramp-up driving growth GEOs (000's) GEO Growth Profile (Including Energy) 2020 2021 2022 2026 Actual Actual Guidance Outlook mCobre Panama = mAntapaccay mAntamina Candelaria mOther Franco Nevada
Slide 27: Cobre Panama Growth Outlook
®| COBRE PANAMA GROWTH OUTLOOK Cobre Panama Expansion 450 180,000 Mill throughput expected to ramp-up over the course of 2022 to achieve between 85 350 140,000 and 90 Mtpa 30 120,000 25 100,000 CP100 Expansion project on track to achieve 100Mtpa by 20 80,000 the end of 2023 15 gop00 FNV 2022 guidanc
Slide 28: Organic Growth Drivers
®) ORGANIC GROWTH DRIVERS 2022 2023 2024 2025 2026 Expansions! a4 a1 a2 a3 as at a2 a3 OF ar a2 a3 a ar a2 a3 a4 Cobre Panama Panama TS Subika Ghana Tasiast Mauritania Vale Brazil Macassa Ontario Island Gold Ontario Stillwater Montana New Mines Est. Start2 a4 a1 a2 03 Of at a2 3 Of a1 a2 03 O& at a2
Slide 29: Producing Asset News
&) PRODUCING ASSET NEWS COBRE PANAMA DETOUR LAKE indicated timing based n operator guidance Streams Cobre Panama Panama Record production in Q3 2022/Expansion to 100 Mtpa on track Candelaria Chile Copper guidance reduced by 2% due to sinkhole nearAlcaparrosa mine Royalties Vale Iron Ore Brazil Royal
Slide 30: Advanced and Exploration News
&) ADVANCED AND EXPLORATION NEWS ESKAY CREEK VALENTINE GOLD indicated timing based on operator g Construction Updates Salares Norte Chile Construction nearing completion/First production expected H1 2023 Magino Ontario Construction 70% complete/First production expected Q2 2023 Séguéla Céte d'Ivoire
Slide 31: Royalty Ounce Breakdown
ROYALTY OUNCE BREAKDOWN Top 10 Assets in 5 Year Outlook’ Stillwater Antapaccay Antamina Copper Detour World/ Lake East Pit 13.3 Moz M&l Royalty Ounces increased 15% to 18.6 Moz at year end 2021 Franco Nevada Other Assets in 5 Year Outlook’ Bald Mountain Wiluna Long-Term Assets! Marigold ° 2.4 Moz Pa
Slide 32: Available Capital
AVAILABLE CAPITAL fae ae gale tv Facility’: 2 ~$1B Franco *) Nevada
Slide 33: Board and Management
) Board y - hay #4 ow David Harquail Tom Albanese Derek Evans Chair Former CEO CEO Rio Tinto MEG Energy Jennifer Maki Maureen Jensen Randall Oliphant Former CEO Former CEO Former CEO Ontario Securities Vale Canada Barrick Gold Commission BOARD AND MANAGEMENT Dr. Catharine Farrow Former CEO TMAC Reso
Slide 34: Thank You for Your Interest in Franco-Nevada
THANK YOU FOR YOUR INTEREST IN TSX: FNV | NYSE: FNV
Slide 35: Appendix - GEOs and Non-GAAP Measures
For the thee months ended Forthe nine months ended APPENDIX - GEOS AND Adjusted Net Income ‘September 30, ‘September 30, (expressed in millons, exept per share amounts) 202 2021 202 2021 NON-GAAP MEASURES Netincome $ 71 § 1660 § 5356 § 5128 Impairment (reversals) and charges = - - 78 1. Starting in
Slide 36: ESG Leadership
&) ESG LEADERSHIP Our ESG Focus Responsible Capital Allocation Community Contributions Good Governance & Shareholder Alignment Fostering Diversity and Inclusion Transparent ESG Disclosure 000980 Responsible Capital Allocation Commitment to responsible mining and energy extraction through investments
Slide 37: ESG Leadership: Good Governance & Shareholder Alignment
&) ESG LEADERSHIP Good Governance & Shareholder Alignment Established board and management team aligned with shareholders with substantial ownership of company and having low G&A costs 4 ranked Canadian mining company in 2021 Franco &) Nevada Board and Management own >$200M" in stock Low G&A even wh
Slide 38: CRA Audit (2012-2017)
®| CRA AUDIT (2012-2017) Canadian Domestic Tax Matters Transfer Pricing (Mexican Subsidiary) Transfer Pricing (Barbadian Subsidiary) Foreign Accrual Property Income (Barbadian Subsidiary) Taxation Years Reassessed 2014-2017 2013-2016 2014-2017 2012-2013 Potential Income Tax Payable! $14.5M (C$19.9M2
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