Slide 1: September 2011 Presentation
SEPTEMBER 2011 PRESENTATION 1
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Statements Certain information contained in this presentation, including any information as to future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking st
Slide 3: Dow vs Gold: Gold has upside potential
Dow vs Gold: 45 32 40 Logarithmic g Scale 35 16 30 DOW/Gold 25 8 20 4 15 10 2 5 Arithmetic Scale 1 0 Gold has upside potential 3
Slide 4: Franco-Nevada (FNV)
Franco-Nevada (FNV) A gold focused royalty & stream company. marejo Listed on the TSX & NYSE with a market Palm capitalization of over $5 billion > 70% expected revenue growth Growth Goldstrrike in 2011* World class discoveries >$500M available capital 1.1% yield Yi ld Yield 60% dividend i
Slide 5: Business Model Benefits
Business Model Benefits Increased Exposure to: Gold ETF FNV Operators Dividend Yield 0% >1% 0 2% 0-2% Leverage to Gold Price 1 >1 >1 Exploration & Expansion upside 0% 100% 100% Reduced Exposure to: Capital costs* 0% 0% 100% Operating costs* 0% 0% 100% Environmental costs* 0% 0% 100% FNV provides yie
Slide 6: Outperforming other Gold Investments
Outperforming other Gold Investments 320% FNV 280% 240% 200% 160% GOLD 120% S&P/TSX Global 80% FNV IPO: Gold Index Dec 2007 40% 0% The Gold Investment that Works *FNV and S&P/TSX Global Gold Index converted to USD 6
Slide 7: Current and Future Assets
Current and Future Assets Over 200 mineral royalties and streams* *Does not include Franco-Nevada’s 135 oil & gas assets and 157 undeveloped oil & gas interests 7
Slide 8: Quality Operators
Quality Operators: Core Operators: Up and Comers: Goldstrike Palmarejo j Bald B ld Mountain M t i Hemlo Mesquite Cerro San Pedro Gold Quarry S bik Subika Holloway Hollo a Hislop Holt Marigold Musselwhite Stillwater D t Detour L Lake k East Boulder Duketon Tasiast Garden Well Goldstrike ‐ Barrick Mar
Slide 9: Secure and Diverse Revenue
Secure and Diverse Revenue* By Country By Asset Other Australia 1% 4% Base Metals & Other 2% O&G 8% US South Africa 23% Palmarejo 15% Sudbury Basin 24% (PGM) 16% Stillwater Mexico (PGM) 26% Canada 6% Gold Other 31% 15% Ezulwini 8% MWS 8% Goldstrike - NPI Gold Quarry Goldstrike - 5% 3% NSR 5% 80% of
Slide 10: Growing Precious Metals Revenue
Growing Precious Metals Revenue 120 100 80 ns) (US$ Million 60 90% precious OTHER Reflects metals in 40 year end Q2 2011 Q PGM minimum i i payments 20 GOLD 0 Diversified portfolio with growing Precious Metals 10
Slide 11: Growth from World Class Discoveries
Growth from World Class Discoveries Tasiast (2% royalty) >20m oz resource* resource 1.5 moz/yr by 2015** Revenue expected to begin in Q3 Tasiast ‐ Mauritania Detour (2% royalty) >25m oz resource* 660k oz/yr starting 2013** Likely further expansion Potential royalties of >$1.3 billion*** Detour Lake
Slide 12: Growth from Existing Portfolio
Growth from Existing Portfolio Category Royalty Operator New mines: • Moolart Well (2%) • Regis Resources • Canadian Malartic (1.5%)* • Osisko Mining • Edikan/Central Edik /C t l Ashanti A h ti (1.5%) (1 5%) • Perseus P Mining Mi i • Garden Well (2%) • Regis Resources • Lounge Lizard (2%) • Kagara L
Slide 13: Growth from Acquisitions
Growth from Acquisitions Gold Wheaton (Quadra FNX; First Uranium) Sudbury Basin, MWS and Ezulwini streams Canadian Malartic (Osisko Mining) Sudbury Basin – Ontario 1.5% gross royalty on portion Edikan/Central Ashanti(Perseus Mining) 1.5% gross royalty Canadian Malartic ‐ Quebec Phoenix Gold Project
Slide 14: Revenue Outlook ($1,500/oz Au)
Revenue Outlook ($1,500/oz Au) 500 ** 2012-13E includes: Excludes: 400 • Full year GLW assets • Permitting • Tasiast & Detour projects such as New Prosperity, • Organic growth risk Rosemont and 70% adjusted 300 Perama Hill s) US$ (Millions * 2011E includes: • Higher prices vs. ‘10 200 48% • Nine mon
Slide 15: Financial Strength
Financial Strength Capital Resources June 30, 2011 Dec 31, 2010 (US$ Millions) (US$ Millions) Working Capital $337 $576 Marketable Securities $55 $40 Available Credit Facility $175 $175 Total Available Capital $567 $791 Continued strong cash position 15
Slide 16: Why Own a Gold ETF?
Why Own a Gold ETF? 320% FNV 280% 240% 200% 160% GOLD 120% 0% S&P/TSX Global 80% FNV IPO: Gold Index Dec 2007 40% 0% Franco-Nevada is outperforming gold by delivering: Growth (>70% revenue growth expected in 2011) Profits and Yield (60% dividend increase in 2011) Business model that minimizes inflat
Slide 17: Q&A
Q&A Goldstrike ‐ Barrick Palmarejo ‐ Coeur Detour – Detour Gold MWS – First Uranium Tasiast ‐ Kinross Mesquite – New Gold East Boulder ‐ Stillwater Sudbury – Quadra FNX Weyburn ‐ Cenovus 17
Slide 18: Q2 2011 Financial Highlights
Q2 2011 Financial Highlights (US $ millions except per share and %) Q2 ’11 Q2 ’10 VAR % Change Revenue $106.3 $106 3 $50.3 $50 3 $56.0 $56 0 112% Precious Metals Revenue $95.3 37.2 58.1 156% Cost of Sales 18.6 6.8 11.8 174% Net Income 33 3 33.3 22 3 22.3 11 0 11.0 49% Earnings Per Share $0.27 $0.20
Slide 19: Revenue Growth – Quarterly
Revenue Growth – Quarterly 120 100 Other 80 PGM (US$ Millions) 60 Gold 40 20 0 Q2 2008 Q2 2009 Q2 2010 Q2 2011 19
Slide 20: Growth of Portfolio
Growth of Portfolio # of Royalties/Streams generating revenue 45 40 H2 H2: Expected 35 • Tasiast • Edikan/Central 30 H1 Ashanti 25 • Canadian Malartic • Ity 20 • Musselwhite • Kirkland Lake 15 10 5 0 2008 2009 2010 2011 Increasingly diverse portfolio * Excludes Oil and Gas 20
Slide 21: Precious Metals Growth
Precious Metals Growth 180% Inferred Resource 160% M&I Resource s Growth (1,2,3) 140% +27% Further growth in 2011 P&P Reserve expected from: 120% +16% • Tasiast +4% 100% • Detour ecious Metals • Sudbury S db Basin B i 80% • MWS • Ezulwini 60% • Garden Well 40% • Edikan/Central Ashanti Pre • Canadian
Slide 22: Growth in Gold Revenue
Growth in Gold Revenue $72.0 million $1 506/oz $1,506/oz $12.2 million $837/oz Growth from*: ~ 25% gold price increase ~ 25% organic growth and leverage ~ 50% new acquisitions * Q2 2011 vs. Q2 2010 22
Slide 23: Directors & Management
Directors & Management Directors Pierre Lassonde Director, Chairman David Harquail Director, President & CEO Derek Evans(1) Director – CEO, Pengrowth Energy Corporation Graham Farquharson(2) Director – President , Strathcona Mineral Services L i Gi Louis Gignac(1) Di t – Former Director F CEO, CEO C
Slide 24: Franco-Nevada Corporation
Franco-Nevada Corporation Capital Structure (as of Sept 13, 2011) Analyst Coverage Shares Outstanding (FNV on TSX & NYSE) 127.60m BMO Capital Markets David Haughton 2012 Warrants (C$32 exercise price) 5.75m BOA/Merrill Lynch Mike Jalonen CIBC Capital Markets Cosmos Chiu 2013 Warrants(1) (C$64.27 exe
Slide 25: Non-IFRS Financial Measures Reconciliation
Non-IFRS Financial Measures Reconciliation Three months ended June 30, Six months ended June 30, (Expressed in millions except per share amounts) 2011 2010 2011 2010 Net Income $ 33.3 $ 22.3 $ 54.5 $ 37.3 Income tax expense 12.8 12.2 21.9 22.6 Finance costs 1.3 0.6 1.9 1.1 Finance income (1.1) (0.7)