Additional Information NON-GAAP FINANCIAL MEASURES w vie Over Adjusted EBITDA and Adjusted EBITDA per Share that are both recurring and non-recurring, management believes that Adjusted EBITDA and Adjusted EBITDA per share are useful measures Adjusted EBITDA and Adjusted EBITDA per share are non-GAAP financial of Franco-Nevada’s performance because they adjust for items which may measures, which is defined by Franco-Nevada by excluding the following not relate to or have a disproportionate effect on the period in which they from net income (loss) and earnings (loss) per share (“EPS”): are recognized, impact the comparability of our core operating results from • Income tax expense/recovery; period to period, are not always reflective of the underlying operating • Finance expenses; performance of our business and/or are not necessarily indicative of future • Finance income; operating results. Adjusted EBITDA and Adjusted EBITDA per share are only • Depletion and depreciation; intended to provide additional information to investors and analysts and • Impairment losses and reversals related to royalty, stream should not be considered in isolation or as a substitute for measures of and working interests; performance prepared in accordance with IFRS Accounting Standards. They • Impairment of investments; do not have any standardized meaning under IFRS Accounting Standards • Gains/losses on sale of royalty, stream and working interests; and may not be comparable to similar measures presented by other issuers. • Gains/losses on investments; Adjusted EBITDA Margin • Foreign exchange gains/losses and other income/expenses; and • Unusual non-recurring items. Adjusted EBITDA Margin is a non-GAAP ratio which is defined by Franco- Precious MetalsManagement uses Adjusted EBITDA and Adjusted EBITDA per share to Nevada as Adjusted EBITDA divided by revenue. Franco-Nevada uses evaluate the underlying operating performance of Franco-Nevada as a Adjusted EBITDA Margin in its annual incentive compensation process to whole for the reporting periods presented, to assist with the planning evaluate management’s performance in increasing revenue and containing and forecasting of future operating results, and to supplement costs. Management believes that in addition to measures prepared in information in its financial statements. Management believes that accordance with IFRS Accounting Standards, our investors and analysts in addition to measures prepared in accordance with IFRS Accounting use Adjusted EBITDA Margin to evaluate the Company’s ability to contain Standards such as net income and EPS, our investors and analysts costs relative to revenue. Adjusted EBITDA Margin is intended to provide use Adjusted EBITDA and Adjusted EBITDA per share to evaluate additional information to investors and analysts and should not be the results of the underlying business of Franco-Nevada, particularly considered in isolation or as a substitute for measures of performance since the excluded items are typically not included in our guidance, prepared in accordance with IFRS Accounting Standards. It does not have with the exception of depletion and depreciation expense. While the any standardized meaning under IFRS Accounting Standards and may not adjustments to net income and EPS in these measures include items be comparable to similar measures presented by other issuers. Reconciliation of Net Income to Adjusted EBITDA: sified Assets For the year ended December 31, (expressed in millions, except per share amounts) 2023 2022 Diver Net (loss) income $ (466.4) $ 700.6 Income tax expense 102.2 133.1 Finance expenses 2.9 3.2 Finance income (52.3) (12.6) Depletion and depreciation 273.1 286.2 Impairment losses 1,173.3 – ves Gain on sale of royalty interest (3.7) – Foreign exchange gain and other income (14.4) (3.6) Adjusted EBITDA $ 1,014.7 $ 1,106.9 Basic weighted average shares outstanding 192.0 191.5 Basic (loss) earnings per share $ (2.43) $ 3.66 Income tax expense 0.53 0.70 Finance expenses 0.02 0.02 Finance income (0.27) (0.07) Depletion and depreciation 1.42 1.49 Impairment losses 6.11 – Mineral Resources and Mineral ReserGain on sale of royalty interest (0.02) – Foreign exchange gain and other income (0.08) (0.02) Adjusted EBITDA per share $ 5.28 $ 5.78 Calculation of Adjusted EBITDA Margin: mation For the year ended December 31, or (expressed in millions, except Adjusted EBITDA Margin) 2023 2022 Adjusted EBITDA $ 1,014.7 $ 1,106.9 Revenue 1,219.0 1,315.7 Additional InfAdjusted EBITDA Margin 83.2 % 84.1 % 132 ★ Franco-Nevada Corporation TSX / NYSE: FNV