Adjusted Net Income and Adjusted Net Income per Share Adjusted Net Income and Adjusted Net Income per share are non-GAAP financial measures, which is defined by Franco-Nevada by excluding the following from net income and EPS: • Foreign exchange gains/losses and other income/expenses; • Impairment losses and reversals related to royalty, stream and working interests; • Gains/losses on disposal of royalty, stream and working interests; • Impairment losses and expected credit losses related to investments, loans receivable and other financial instruments; • Changes in fair value of investments, loans receivable and other financial instruments; • Impact of income taxes on these items; • Income taxes related to the reassessment of the probability of realization of previously recognized or de-recognized deferred income tax assets; and • Income taxes relating to the revaluation of deferred income tax assets and liabilities as a result of statutory income tax rate changes in the countries in which the Company operates. Management uses Adjusted Net Income and Adjusted Net Income per share to evaluate the underlying operating performance of Franco-Nevada 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. Management believes that in addition to measures prepared in accordance with IFRS Accounting Standards such as net income and EPS, our investors and analysts use Adjusted Net Income and Adjusted Net Income per share to evaluate the results of the underlying business of Franco-Nevada, particularly since the excluded items are typically not included in our guidance. While the adjustments to net income and EPS in these measures include items that are both recurring and non-recurring, management believes that Adjusted Net Income and Adjusted Net Income per share are useful measures of Franco-Nevada’s 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. Adjusted Net Income and Adjusted Net Income per share are intended to provide additional information to investors and analysts and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. They do not have any standardized meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by other issuers. Adjusted Net Income Margin Adjusted Net Income Margin is a non-GAAP ratio which is defined by Franco-Nevada as Adjusted Net Income divided by revenue. Franco-Nevada uses Adjusted Net Income Margin in its annual incentive compensation process to evaluate management’s performance in increasing revenue and containing costs. Management believes that in addition to measures prepared in accordance with IFRS Accounting Standards, our investors and analysts use Adjusted Net Income Margin to evaluate the Company’s ability to contain costs relative to revenue. Adjusted Net Income Margin is intended to provide additional information to investors and analysts and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. It does not have any standardized meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by other issuers. Reconciliation of Net Income to Adjusted Net Income: (expressed in millions, except per share amounts) For the year ended December 31, 2024 2023 Net income (loss) $ 552.1 $ (466.4) Impairment losses – 1,173.3 Gain on disposal of royalty interests (0.3) (3.7) Foreign exchange loss (gain) and other expenses (income) 20.7 (14.4) Tax effect of adjustments (2.4) (4.0) Other tax related adjustments Deferred tax expense related to the remeasurement of deferred tax liability due to changes in Barbados tax rate 49.1 – Change in unrecognized deferred income tax assets (1.1) (1.7) Adjusted Net Income $ 618.1 $ 683.1 Basic weighted average shares outstanding 192.4 192.0 Basic earnings (loss) per share $ 2.87 $ (2.43) Impairment losses – 6.11 Gain on disposal of royalty interests – (0.02) Foreign exchange loss (gain) and other expenses (income) 0.11 (0.07) Tax effect of adjustments (0.01) (0.02) Other tax related adjustments Deferred tax expense related to the remeasurement of deferred tax liability due to changes in Barbados tax rate 0.26 – Change in unrecognized deferred income tax assets (0.02) (0.01) Adjusted Net Income per share $ 3.21 $ 3.56 Calculation of Adjusted Net Income Margin: (expressed in millions, except Adjusted Net Income Margin) For the year ended December 31, 2024 2023 Adjusted Net Income $ 618.1 $ 683.1 Revenue 1,113.6 1,219.0 Adjusted Net Income Margin 55.5 % 56.0 % Franco-Nevada Corporation ★ 129 TSX / NYSE: FNV Additional Information