Vous êtes sur la page 1sur 19

FNV TSX/NYSE | CORPORATE UPDATE | 02 2017

FNV TSX/NYSE
Cautionary Statement
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 include, but are not limited to, statements with respect to future events or future performance, managements expectations regarding Franco-Nevadas growth, results of operations, estimated future
revenues, carrying value of assets, future dividends and requirements for additional capital, mineral reserve and mineral resource estimates, production estimates, production costs and revenue, future demand for and prices of
commodities, expected mining sequences, business prospects and opportunities. In addition, statements (including data in tables) relating to reserves and resources and gold equivalent ounces are forward looking statements,
as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such reserves and resources and gold equivalent
ounces will be realized. Such forward looking statements reflect managements current beliefs and are based on information currently available to management. Often, but not always, forward looking statements can be identified
by the use of words such as plans, expects, is expected, budgets, scheduled, estimates, forecasts, predicts, projects, intends, targets, aims, anticipates or believes or variations (including negative
variations) of such words and phrases or may be identified by statements to the effect that certain actions may, could, should, would, might or will be taken, occur or be achieved. Forward looking statements involve
known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements
expressed or implied by the forward looking statements. A number of factors could cause actual events or results to differ materially from any forward looking statements, including, without limitation: fluctuations in the prices of
the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican Peso
and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies, and the enforcement
thereof; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the
operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; influence of macroeconomic developments; business opportunities
that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a
royalty, stream or other interest; whether or not Franco-Nevada is determined to have passive foreign investment company (PFIC) status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as
amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-
Nevada holds a royalty, stream or other interest; actual mineral content may differ from the reserves and resources contained in technical reports; rate and timing of production differences from resource estimates, other technical
reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or
unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious diseases; and the integration of acquired assets. The
forward looking statements contained in this presentation are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds
a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying
properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; Franco-Nevadas ongoing income and assets relating to determination of its PFIC status; no material changes to
existing tax treatment; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of
underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However,
there can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and investors are cautioned that forward
looking statements are not guarantees of future performance. Franco-Nevada cannot assure investors that actual results will be consistent with these forward looking statements and investors should not place undue reliance on
forward looking statements due to the inherent uncertainty therein. For additional information with respect to risks, uncertainties and assumptions, please refer to the Risk Factors section of Franco-Nevadas most recent Annual
Information Form filed with the Canadian securities regulatory authorities on www.sedar.com and Franco-Nevadas most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking
statements herein are made as of the date herein only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except
as required by applicable law.

Non-IFRS Measures
Adjusted Net Income, Adjusted EBITDA and Margin are intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with
International Financial Reporting Standards (IFRS). They do not have any standardized meaning under IFRS, and may not be comparable to similar measures presented by other issuers. Management uses these measures to
evaluate the underlying operating performance of the Company as a whole for the reporting periods presented, to assist with the planning and forecasting of future operating results, and to supplement information in its financial
statements. The Company also uses Margin in its annual incentive compensation process to evaluate managements performance in increasing revenue and containing costs. Management believes that in addition to measures
prepared in accordance with IFRS such as Net Income and Earnings per Share (EPS), our investors and analysts use these measures to evaluate the results of the underlying business of the Company, particularly since the
excluded items are typically not included in guidance. While the adjustments to Net Income and EPS include items that are both recurring and non-recurring, management believes these measures are useful measures of the
Companys performance because they adjust for items which may not relate to or have a disproportionate effect on the period in which they are recognized, impact the comparability of our core operating results from period to
period, are not always reflective of the underlying operating performance of our business, and/or are not necessarily indicative of future operating results. For a reconciliation of these measures to various IFRS measures, please
see the end of this presentation or the Companys most recent Managements Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedar.com and with the SEC on www.sec.gov.
This presentation does not constitute an offer to sell or a solicitation of an offer to purchase any security in any jurisdiction

FNV TSX/NYSE 2
A Gold Focused Royalty/Stream Company

Market Cap2
Top Shareholders
~$11 Billion
Fidelity
Black Rock
FNV:TSX/NYSE Free Cash Flow
T. Rowe Price
S&P/TSX 60 | GDX and No Debt

High Margin Business Available Capital


Board of Directors
>80% Margin3
~$1.4 Billion Pierre Lassonde, Chair

Overhead/ David Harquail, CEO


<0.2% Market Cap Tom Albanese
Derek Evans
Dividend ~1.4% Graham Farquharson

9 Years of Increases Dr. Catharine Farrow


Louis Gignac

$0.88 Annualized Randall Oliphant


Hon. David R. Peterson
Aristocrat Index

1. All amounts are US$


FNV TSX/NYSE 2. As at January 18, 2017 3
3. Please see notes on page 19
The Gold Investment that Works
450%

CAGR FNV
400%
1 Yr. 32.5%
350%
3 Yr. 15.2%
300%
5 Yr. 10.7% FNV
250%
IPO 17.3%
200%

150%

100%

50%
Gold
0%

S&P/TSX
-50%
FNV IPO: Global Gold
Dec 2007
Index
-100%
2008 2009 2010 2011 2012 2013 2014 2015 2016
2008200920102011 20122013201420152016

FNV, S&P/TSX Global Gold Index converted to USD.


FNV TSX/NYSE 4
Chart to December 29, 2016.
Business Model Principles

Long Term Optionality

Maximize Minimize
Exploration Upside Cost Exposures
Security of Tenure Margin Encroachment
Focus on New Investments Involvement in Operations

Goldstrike Detour Tasiast

FNV TSX/NYSE 5
Business Model Benefits

FNV Provides Yield & More Upside Than a Gold ETF


With Less Risk Than an Operator

Gold ETF FNV Operators


Limited
Capital Costs
Exposure to:
Operating & Other Costs
Leverage to Gold Price
Benefit of: Exploration & Expansion
Dividend Yield

TacaTaca
FNV TSX/NYSE 6
Franco-Nevada Since IPO
GEOs1 Revenue Market Capitalization2
(000s) (US$ millions) (US$ billions)

G&A Adjusted Net Income1 Dividends & DRIP Paid


(US$ millions) (US$ per share) (US$ millions)

1. Please see notes slide 19


FNV TSX/NYSE 2. As at December 31 7
Q3 2016 Revenue Sources

94% Precious Metals 83% from Americas Royalties & Streams

Other
Other
6%
1%
Profit Royalties
O&G 7%
5% Rest Of
PGMs US
7% World 15%
17%

Revenue Barbados
Silver Royalties
Canada Streams
21% Commodity Gold Geography 19% 19% Type 43%
66%

Latin
America In Country
49% Streams
25%

FNV TSX/NYSE 8
Increased Guidance Range

Q1- Q3 2016 Original 2016 Updated 2016


Results Guidance1 Guidance
GEOs2 342,473 425 445,000 445 455,000
Oil & Gas Revenue
PGMs $19.7 M $15 $25 M $25 $30 M
7%

Silver
21%
Gold
66%

Antamina
1. Original March 10, 2016 guidance
FNV TSX/NYSE 2. See notes slide 19
9
Diversified Portfolio with 340 Assets

Producing Mineral 43
Advanced Mineral 42
Exploration Mineral 177 (not shown)
Oil & Gas producing 59 (3 shown)
Oil & Gas exploration 19 (not shown)
Total 340

FNV TSX/NYSE 10
Positive Portfolio News
PROJECTS BEING ADVANCED
Cobre Panama (Panama) First Quantum reports 46% complete and 2019 ramp-up
Candelaria (Chile) Lundin studying 15-20% milling increase & new TMS construction
Goldstrike (Nevada) Barrick lowering AISC and TCM ramp-up
Stillwater (Montana) Blitz and infrastructure projects expected to increase production
Tasiast (Mauritania) Kinross expects Phase 1 expansion Q2/18, Phase 2 feasibility Q3/17
Hollister (Nevada) Klondex acquisition and possible restart in 2017
Sabodala (Senegal) Terangas Gora production ramp-up; mill optimization
Cerro Moro (Argentina) Yamana targets start-up in Q2/18
Ahafo/Subika (Ghana) Newmont expects expansion and underground decision in H1 2017
Brucejack (British Columbia) Pretium expects production to start Q2/17
Musselwhite (Ontario) Goldcorps infrastructure project target 20% increase in production
Sissingue (Cte dIvoire) Perseus expects production Q4/17
Castle Mountain(California) Castle Mountain expects to start pre-stripping Q4/17
Hardrock (Ontario) Draft EA for potential 4.2m oz LOM production
Rosemont (Arizona) Hudbay progressing permits
Agi Dagi/Camyurt (Turkey) Alamos new feasibility + PEA project LOM 1.3m oz
ADDING NEW OUNCES
Bald Mountain (Nevada) Kinross doubles reserves to 2.1m oz & ROD
Marigold (Nevada) Silver Standard resource expansion program
Karma (Burkina Faso) Kao North expected to increase life by 2.5 yrs
Fire Creek/Midas (Nevada) Klondex exploration success including step out intercepts
South Arturo (Nevada) Permitting El Nino underground below Phase 2 pit
Detour (Ontario) West Detour permits to extend LOM to 23 years
Timmins West (Ontario) Tahoe expanding 144 GAP discovery
Macassa (Ontario) Kirkland Lake Gold expanding SMC and buys back 1% NSR
Duketon (Australia) Regis adding reserves at Baneygo & Tooheys Well
Ity (Cte dIvoire) Endeavour Minings Bakotouo & Colline Sud discoveries

FNV TSX/NYSE 11
Recent Cornerstone Investments

Long Term Assets With Large Land Positions

Antamina Cobre Panama


Peru Panama
$610 M $416 M $1 B

Candelaria Antapaccay
Chile Peru
$648 M $500 M

FNV TSX/NYSE 12
GEOs Realized From New Investments

More Diversified & Longer Duration Portfolio


160
Cobre Panama1
2018 - 2019
Quarterly GEOs (000s ounces)

140

120
Antapaccay
100
Antamina
80
Candelaria
60

40
Other Assets
20

-
Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

FNV TSX/NYSE 1. Quarterly rate of expected first five year average 13


New Investment Opportunities

since Cerro Moro Yamana Gold


1985 Existing 3rd Party Royalties Brucejack Pretium Resources
Hardrock Premier Gold Mines

since Palmarejo Coeur Mining


2008 By-Product Funding Cobre Panama First Quantum

since Kirkland Lake Kirkland Lake Gold


2011 Primary Product Funding Stibnite Gold Midas Gold
Karma True Gold Mining

since Sabodala Teranga Gold


2013 M&A Funding Fire Creek/Midas Klondex Mines
Candelaria Lundin Mining

since Antamina Teck Resources


2015 Recapitalization Antapaccay Glencore

since
2016 Commodity Diversification STACK Oil & Gas Oklahoma

FNV TSX/NYSE 14
STACK Oil & Gas U.S. Royalty Acquisition

Closed US$100 M purchase in December 2016


16,865 acres of GORR & mineral title at an average
royalty rate of 7.15%
The STACK is one of the most active shale plays in the US
Industry friendly jurisdiction, no pipeline issues, minimal
differentials and no carbon taxes
Royalty acreage in the core of the play
Royalty lands leased by strong operators
Development of Meramec formation is set to move north
onto royalty ground as operators fully develop their lands
Exposure to multiple formations at depth
Investing in the play early drives higher long-term returns

FNV TSX/NYSE 15
Approximately $1.4 B of Available Capital

Debt Free
Working Capital1,2 $358 Million
Marketable Securities1 $100 Million

Credit Facility3 $1,000 Million

STACK Royalty Acquisition ($100 Million)

Available Capital US$1.4 Billion

CobrePanama
1. As at September 30, 2016
FNV TSX/NYSE 2. See notes on slide 19 16
3. Does not include the US$250 million accordion facility
Dividends Paid

$157 Million in 2016


Highest in Global Gold Industry

9 consecutive years of dividend increases


>$700 M paid since IPO 180

IPO investors now realizing 5.8% yield (U.S.) or 160

7.6% yield (CDN) 140


120

(US $ Millions)
100
80
60
40
20
0
2008 2009 2010 2011 2012 2013 2014 2015 2016

FNV TSX/NYSE 17
Why Own Franco-Nevada?

FNV Provides Yield & More Upside Than a Gold ETF


With Less Risk Than an Operator

Gold exposure at a discount


Growth organic and acquisitions
Dividends vs. ETF fees
FNV

Gold

S&P/TSX Global
Gold Index
2008 2009 2010 2011 20122013201420152016

At December 29; FNV and S&P/TSX


FNV TSX/NYSE Global Gold Index converted to USD 18
Appendix Non IFRS Measures
1. Adjusted Net Income and Adjusted Net Income per share are non-IFRS financial measures, which excludes the Twelve months ended
December 31,
following from net income and net income per share: foreign exchange gains/losses and other (expressed in millions, except Margin) 2015 2014
income/expenses; gains/losses on the sale of investments; impairment charges related to royalty, stream and
Net Income (Loss) $ 24.6 $ 106.7
working interests and investments; unusual non-recurring items; and the impact of income taxes on these items..
Income tax expense (recovery) 23.9 50.3
See the tables below for non-IFRS reconciliation for 2015 and 2014. Please refer to the relevant Annual MD&A
Finance costs 2.9 1.6
for non-IFRS reconciliation for 2012, 2011 and 2010. Adjusted Net Income for 2009 and 2008 provided for Finance income (5.3) (3.9)
illustrative purposes only as these years predate IFRS. Adjusted EBITDA and Adjusted EBITDA per share are Depletion and depreciation 216.3 163.1
non-IFRS financial measures, which excludes the following from net income and net income per share: income Non-cash costs of sales 6.6 6.0
tax expense/recovery; finance expenses and finance income; foreign exchange gains/losses and other Impairment charges 62.9 31.1
income/expenses; gains/losses on the sale of investments; impairment charges related to royalty, stream and Impairment of investments 2.0 0.4
working interests and investments; depletion and depreciation; and non-cash costs of sales. See the tables Foreign exchange (gains)/losses and
below for non-IFRS reconciliation for 2015 and 2014. Please refer to the relevant Annual MD&A for non-IFRS other (income)/expenses 5.4 1.6
reconciliation for 2012, 2011 and 2010. Adjusted EBITDA for 2009 and 2008 provided for illustrative purposes Adjusted EBITDA $ 339.3 $ 356.9
only as these years predate IFRS Revenue 443.6 442.4
2. Adjusted EBITDA and Adjusted EBITDA per share are non-IFRS financial measures, which excludes the Margin 76.5% 80.7%
following from net income and net income per share: income tax expense/recovery; finance expenses and Twelve months ended
finance income; foreign exchange gains/losses and other income/expenses; gains/losses on the sale of December 31,
(expressed in millions, except per share amounts) 2015 2014
investments; impairment charges related to royalty, stream and working interests and investments; depletion
and depreciation; and non-cash costs of sales. See the tables below for non-IFRS reconciliation for 2015 and Net Income (Loss) $ 24.6 $ 106.7
Foreign exchange (gains)/losses and other
2014. Adjusted EBITDA for 2009 and 2008 provided for illustrative purposes only as these years predate IFRS.
(Income)/expenses, net of income tax 5.6 1.6
3. Margin is defined by the Company as Adjusted EBITDA divided by revenue. Mark-to-market changes on derivatives, net of
4. Working Capital is a Non-IFRS financial measure. The Company defines Working Capital as current assets less income tax 0.4 (1.1)
current liabilities. Impairment charges, net of income tax 50.6 29.5
5. Fiscal years 2010 through 2015 were prepared in accordance with IFRS. Fiscal years 2008 and 2009 were Impairment of investments, net of income tax 1.8 0.4
Indexation adjustment (0.4) 0.4
prepared in accordance with Canadian GAAP
Valuation allowance 0.9 -
6. GEOs include our gold, platinum, palladium, silver and other mineral assets. GEOs are estimated on a gross Impact of change in depreciation rate 4.0 -
basis for NSR royalties and, in the case of stream ounces, before the payment of the per ounce contractual price Impact of tax rate increases 1.4 -
paid by the Company. For NPI royalties, GEOs are calculated taking into account the NPI economics. Platinum, Adjusted Net Income $ 88.9 $ 137.5
palladium, silver and other minerals were converted to GEOs by dividing associated revenue, which includes Basic Weighted Average Shares Outstanding 156.8 150.5
settlement adjustments, by the average commodity price for the period.
Basic EPS $ 0.16 $ 0.71
Gold Silver Platinum Palladium Foreign exchange(gains)/losses and other
(income)/expenses, net of income tax 0.04 0.01
2014 $1,266/oz $19.05/oz $1,385/oz $803/oz Impairment charges, net of income tax 0.32 0.20
Indexation adjustment - (0.01)
2015 $1,160/oz $15.68/oz $1,054/oz $691/oz Valuation allowance 0.01 -
Impact of change in depreciation rate, net of
Q1 - Q3 2016 $1,258/oz $17.20/oz $1,001/oz $590/oz income tax 0.03 -
Impact of tax rate increases 0.01 -
Adjusted Net Income per share $ 0.57 $ 0.91

FNV TSX/NYSE 19