Additional Information Adjusted Net Income and Adjusted Net Income per Share relate to or have a disproportionate effect on the period in which they are recognized, impact the comparability of our core operating results from Adjusted Net Income and Adjusted Net Income per share are non-GAAP period to period, are not always reflective of the underlying operating financial measures, which is defined by Franco-Nevada by excluding performance of our business and/or are not necessarily indicative of the following from net income (loss) and EPS: future operating results. Adjusted Net Income and Adjusted Net Income • Foreign exchange gains/losses and other income/expenses; per share are intended to provide additional information to investors and • Impairment losses and reversals related to royalty, stream analysts and should not be considered in isolation or as a substitute for and working interests; measures of performance prepared in accordance with IFRS Accounting • Impairment of investments; Standards. They do not have any standardized meaning under IFRS • Gains/losses on sale of royalty, stream and working interests; Accounting Standards and may not be comparable to similar measures • Gains/losses on investments; presented by other issuers. • Unusual non-recurring items; and • Impact of income taxes on these items. Adjusted Net Income Margin Management uses Adjusted Net Income and Adjusted Net Income per Adjusted Net Income Margin is a non-GAAP ratio which is defined by share to evaluate the underlying operating performance of Franco-Nevada Franco-Nevada as Adjusted Net Income divided by revenue. Franco-Nevada as a whole for the reporting periods presented, to assist with the planning uses Adjusted Net Income Margin in its annual incentive compensation and forecasting of future operating results, and to supplement information process to evaluate management’s performance in increasing revenue and in its financial statements. Management believes that in addition to containing costs. Management believes that in addition to measures measures prepared in accordance with IFRS Accounting Standards such prepared in accordance with IFRS Accounting Standards, our investors and as net income and EPS, our investors and analysts use Adjusted Net analysts use Adjusted Net Income Margin to evaluate the Company’s ability Income and Adjusted Net Income per share to evaluate the results of to contain costs relative to revenue. Adjusted Net Income Margin is intended the underlying business of Franco-Nevada, particularly since the excluded to provide additional information to investors and analysts and should not items are typically not included in our guidance. While the adjustments be considered in isolation or as a substitute for measures of performance to net income and EPS in these measures include items that are both prepared in accordance with IFRS Accounting Standards. It does not have recurring and non-recurring, management believes that Adjusted Net any standardized meaning under IFRS Accounting Standards and may not Income and Adjusted Net Income per share are useful measures of be comparable to similar measures presented by other issuers. Franco-Nevada’s performance because they adjust for items which may not Reconciliation of Net Income to Adjusted Net Income: For the year ended December 31, (expressed in millions, except per share amounts) 2023 2022 Net (loss) income $ (466.4) $ 700.6 Impairment losses 1,173.3 – Gain on sale of royalty interest (3.7) – Foreign exchange gain and other income (14.4) (3.6) Finance income related to repayment of Noront Loan – (2.2) Tax effect of adjustments (4.0) 2.8 Other tax related adjustments Change in unrecognized deductible temporary differences 1.7 – Adjusted Net Income $ 683.1 $ 697.6 Basic weighted average shares outstanding 192.0 191.5 Basic (loss) earnings per share $ (2.43) $ 3.66 Impairment losses 6.11 – Gain on sale of royalty interest (0.02) – Foreign exchange gain and other income (0.07) (0.02) Finance income related to repayment of Noront Loan – (0.01) Tax effect of adjustments (0.02) 0.01 Other tax related adjustments Change in unrecognized deductible temporary differences 0.01 – Adjusted Net Income per share $ 3.56 $ 3.64 Calculation of Adjusted Net Income Margin: For the year ended December 31, (expressed in millions, except Adjusted Net Income Margin) 2023 2022 Adjusted Net Income $ 683.1 $ 697.6 Revenue 1,219.0 1,315.7 Adjusted Net Income Margin 56.0 % 53.0 % TSX / NYSE: FNV Franco-Nevada Corporation ★ 133