Franco-nevada Corporation · TSX:FNV
Franco-nevada — FY2022 Earnings Presentation
15 slides from Franco-nevada's earnings presentation, Mar 16, 2023
Slide 1: 2022 Results Presentation
2022 Results Presentation MARCH 16, 2023 FNV: TSX | NYSE
Slide 2: Presenters
2022 RESULTS CONFERENCE CALL AND WEBCAST 2 Presenters Paul Brink Sandip Rana President & CEO CFO
Slide 3: Cautionary Statement
CAUTIONARY STATEMENT 3 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, which may includ
Slide 4: 2022 Performance vs Guidance
2022 PERFORMANCE VS GUIDANCE 4 2022 2022 Guidance1 Actual Total Gold Equivalent Ounces Sold2 680k to 740k 729k Total Gold Equivalent Ounces Sold from Precious Metals 510k to 550k 510k Total Gold Equivalent Ounces Sold from Diversified 170k to 190k 219k 1. Prices used in the 2022 Guidance updated on
Slide 5: Total GEOs Sold
TOTAL GEOs SOLD 5 Quarterly Breakdown Annual Breakdown (GEOs1 000’s) (GEOs1 000’s) 200 800 180 700 160 600 140 500 120 Portfolio continues 100 400 to deliver consistent 80 300 performance 60 200 40 100 20 - - Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2018 2019 2020 2021 2022 Precious Metal Diversified
Slide 6: Year-over-Year Average Price Changes
YEAR-OVER-YEAR AVERAGE PRICE CHANGES 6 Q4 2022 Year End 2022 Gold - (3.7%) 0.0% Silver - (9.1%) - (13.6%) Platinum - (2.7%) - (11.9%) Continued volatility Palladium + 0.3% - (12.1%) in commodity prices Iron Ore 62% Fe CFR China - (9.3%) - (24.0%) Edmonton Light + 17.7% + 49.1% West Texas Intermediat
Slide 7: Revenue and Adjusted EBITDA Performance
REVENUE AND ADJUSTED EBITDA PERFORMANCE 7 $400 $1,400 $1,300 $1,316 Portfolio performing well $350 $328 $320 $1,092 $1,107 $1,200 $300 $270 $1,000 $262 Full Year $ (millions) Benefit of recovery $250 $800 Q4 $ (millions) in energy prices $200 $600 $150 81.9% Adjusted $100 $400 EBITDA margin1 in Q4 2
Slide 8: Key Financial Metrics Trend
KEY FINANCIAL METRICS TREND 8 Q4 2022 Q4 2021 Variance 2022 2021 Variance Average Gold Price ($/oz) $ 1,729 $1,795 (3.7%) $ 1,801 $1,800 0.0% Gold Equivalent Ounces (GEOs)1 183,886 182,543 0.7% 729,960 728,237 0.2% Revenue $ 320.4 $327.7 (2.2%) $ 1,315.7 $1,300.0 1.2% Adjusted EBITDA1 (millions) $26
Slide 9: Revenue Diversification
REVENUE DIVERSIFICATION 9 Diversified with Low Risk (2022 Revenue) Rest of First Gas World Cobre Panama Quantum 12% 9% 17% 17% Other NGL 27% Oil Mexico & Canada 2% 12% Central & USA Lundin America Candelaria 41% Others 10% 23% 10% Iron Ore Commodity Gold Geography Assets 48% Operator Glencore 4% 55%
Slide 10: Growing GEO Margin
GROWING GEO MARGIN 10 $2,000 $2,000 $1,800 $1,800 $1,555 $1,559 $1,600 $1,528 $1,600 $1,400 $1,400 Business model Average Gold Price US $ Cash Cost Per GEO US$ 1 $1,126 benefits from rise in $1,200 $1,029 $1,200 commodity prices $1,000 $1,000 with consistent cost $800 $800 structure $600 $600 $400 $
Slide 11: Cost Efficient and Scalable
COST EFFICIENT AND SCALABLE 11 $400 Revenue $350 Quarterly Revenue and G&A (millions) Corporate $300 Administration costs and stock $250 compensation $200 expenses less than 3% of $150 revenue in 2022 $100 $50 G&A $- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1. Pleas
Slide 12: Guidance
GUIDANCE 12 2022 Actual 2023 Guidance1 2027 Outlook2 729,960 640,000-700,000 760,000-820,000 GEOs Total + Record GEOs in 2022 – Assumes lower oil and gas prices1 Assumes flat commodity prices1 + Diversified guidance exceeded + Vale royalty attributable production + Growth from Precious Metal assets
Slide 13: Available Capital
AVAILABLE CAPITAL 13 NUEVAUNIÓN (RELINCHO) 1. As at December 31, 2022 2. $1B Corporate Revolver 3. Funding commitments subsequent to December 31, 2022 will be funded with cash flow from operations
Slide 14: Thank you for your interest in www.FRANCO-NEVADA.com
THANK YOU FOR YOUR INTEREST IN www.FRANCO-NEVADA.com TSX: FNV | NYSE: FNV
Slide 15: Appendix – GEOs and Non-GAAP Measures
APPENDIX – GEOS AND NON-GAAP MEASURES 15 1. Starting in Q4 2021, revenue from Franco-Nevada’s Energy assets is included in the calculation of GEOs. GEOs for comparative periods have been recalculated to conform with the current presentation. GEOs include Franco- Nevada’s attributable share of produc