Q2 2013 Conference Call Final - s21.q4cdn.com...Q2 2013 Q2 2012 YTD 2013 YTD 2012 1. Adjusted EBITDA is defined by the Company as net income (loss) excluding income tax expense, finance

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Forward-Looking StatementsThis presentation contains certain “forward looking information” and “forward looking statements” within the meaning of applicable Canadian securities laws and the United States PrivateSecurities Litigation Reform Act 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management’s expectationsregarding Franco-Nevada’s growth, results of operations, estimated future revenues, 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 together with related royalty equivalent unit and gold equivalent ounce calculations are forward looking statements, as they involve implied assessment, basedon certain estimates and assumptions and no assurance can be given that the estimates will be realized Such forward looking statements reflect management’s current beliefs and are basedon certain estimates and assumptions, and no assurance can be given that the estimates will be realized. Such forward looking statements reflect management s current beliefs and are basedon 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”, “budget”,“scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may beidentified 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 andunknown 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 lookingstatement, 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 & 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 US dollar, changes innational and local government legislation, including permitting and licensing regimes and taxation policies, regulations and political or economic developments in any of the countries whereproperties 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-Nevadaholds a royalty, stream or other interest, including changes in the ownership and control of such operators, influence of macroeconomic developments, business opportunities that becomeavailable 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 the Company is determined to have PFIC status, 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, rate and timing of production differences from resource estimates,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

l t d l i l d t ll i l diti l f il i fl di d th t l di t i il t d th i t ti f i d t Th f dunusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters or civil unrest, and the integration of acquired assets. The forwardlooking statements contained in this presentation are based upon assumptions management believes to be reasonable, including, without limitation, the ongoing operation of the properties inwhich 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 anddisclosures 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, the Company’songoing income and assets relating to determination of its PFIC status, no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or otherinterest, 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 otherfactors 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 beaccurate as actual results and future events could differ materially from those anticipated in such statements and readers are cautioned that forward looking statements are not guarantees ofaccurate, as actual results and future events could differ materially from those anticipated in such statements and readers are cautioned that forward looking statements are not guarantees offuture performance. Franco-Nevada cannot assure investors that actual results will be consistent with these forward looking statements. Accordingly, readers should not place undue reliance onforward 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 ofour AIF, as well as Franco-Nevada’s most recent Management’s Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedar.com and contained in Franco-Nevada’s Form 40-F filed with the SEC on www.sec.gov. The forward looking statements herein are made as of the dates set out in this presentation only and Franco-Nevada does not assumeany 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

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Adjusted Net Income, Adjusted EBITDA and Margin are intended to provide additional information only and do not have any standardized meaning under International Financial ReportingStandards (“IFRS”) and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not necessarily indicativeof operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently. For a reconciliation of these measures to various IFRSmeasures, please see the end of this presentation or the Company’s current MD&A disclosure found on the Company’s website and filed with Canadian securities regulatory authorities onSEDAR at www.sedar.com and with the Securities and Exchange Commission on EDGAR at www.sec.gov.

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($ millions except per share) Q2 2013 Q2 2012 YTD 2013 YTD 2012

1. Adjusted EBITDA is defined by the Company as net income (loss) excluding income tax expense, finance income and costs, foreign exchange gains/losses,

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j y p y ( ) g p , , g g g / ,gains/losses on the sale of investments, income/losses from equity investees, depletion and depreciation and impairment charges related to royalties, streams, working interests and investments. See Non-IFRS Measures at the end of this presentation.

2. Adjusted Net Income is defined by the Company as net income (loss) excluding foreign exchange gains/losses, gains/losses on the sale of investments, impairment charges related to royalties, streams, working interests and investments, unusual non-recurring items, and the impact of taxes on all these items. See Non-IFRS Measures at the end of this presentation.

3. Margin is defined by the Company as Adjusted EBITDA divided by Revenue.

100 

120 

80 6%80.3%77.7%

Margin1

60

80 

80.6%

Revenue(Au price)2

g

20

40 

60 

Millions $ 77.7%

76.9%83.6%

$1611/oz $1414/oz$1504/oz

$1196/oz

‐

20 M

$922/oz$896/ozG&A

Proceeds taxes

‐40 

‐20 

Q2/08 Q2/09 Q2/10 Q2/11 Q2/12 Q2/13

Streamcosts

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Q2/08 Q2/09 Q2/10 Q2/11 Q2/12 Q2/13

Australia5%

Other 23%

US21%Rest of

World

Gold 67%

PGMs

23% World19%

PGMs 10% Canada

33%Mexico

22%

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0 4

35.1

4.2

2.81.7 0.4

9.41.9

1.0

31.9

7FNV1 Please see definition on Slide 4

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Capital Resources (June 30, 2013) ($)

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Three months ended June 30, Six months ended June 30, (Expressed in millions except per share amounts) 2013 2012 2013 2012 Net Income $ 21.6 $ 36.9 $ 57.0 $ 83.7

Income tax expense 12.0 14.3 25.4 26.9 Fi t 0 4 0 2 1 1 0 6 Finance costs 0.4 0.2 1.1 0.6 Finance income (0.8) (2.5) (1.7) (4.7) Depletion and depreciation 28.2 31.0 62.6 62.7 Foreign exchange (gains)/losses and other expenses 9.3 2.6 14.0 (1.3) Impairment of investments 4.5 - 5.9 -

Adjusted EBITDA $ 75.2 $ 82.5 $ 164.3 $ 167.9 Adjusted EBITDA $ 75.2 $ 82.5 $ 164.3 $ 167.9 Weighted average shares outstanding 146.8 144.0 146.8 141.9 Adjusted EBITDA per share $ 0.51 $ 0.57 $ 1.12 $ 1.18 Net Income $ 21.6 $ 36.9 $ 57.0 $ 83.7

Foreign exchange (gain)/loss and other (income)/expenses, net of income tax 1.9 0.4 2.1 0.8

Mark-to-market changes on derivative 4.4 1.3 7.9 (2.3) Impairment of investments, net of income tax 4.0 - 5.2 - Credit facility costs written off, net of income tax - - 0.3 - Withholding taxes reversal - (3.5) - (3.5)

Adjusted Net Income $ 31 9 $ 35 1 $ 72 5 $ 78 7 Adjusted Net Income $ 31.9 $ 35.1 $ 72.5 $ 78.7 Adjusted Net Income per share $ 0.22 0.24 $ 0.49 $ 0.55 As at

June 30, 2013

December 31, 2012

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,Current assets 879.4 879.2 Current liabilities (43.6) (56.8)

Working capital 835.8 822.4

Analyst CoverageCapital Structure (June 30, 2013)

Major Shareholders

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1. Previous 52 weeks as of July 31, 20132. As of June 30, 20133. Based on current US$0.06 monthly dividend