Mr. John Varnell reports

FAIRFAX INDIA HOLDINGS CORPORATION: FIRST QUARTER FINANCIAL RESULTS

Fairfax India Holdings Corp. had net loss of $55.5-million in the first quarter of 2023 (40-cent net loss per diluted share), compared with net earnings of $56-million in the first quarter of 2022 (38-cent net earnings per diluted share). All dollar amounts in this press release are expressed in U.S. dollars except as otherwise noted.

Highlights for the first quarter of 2023 included the following:

• Net change in unrealized losses on investments of $56.3 million, principally from a decrease in the fair value of the company's investments in Sanmar ($50.7 million), Fairchem Organics ($35.6 million), IIFL Securities ($14.4 million) and NCML common shares ($11.8 million), partially offset by an increase in the fair value of the company's investments in BIAL ($54.1 million), NSE ($7.0 million) and CSB Bank ($6.1 million). The net change in unrealized losses on investments included reversals of unrealized gains on Other Public Indian Investments ($6.4 million) and 360 ONE ($3.0 million) recorded in prior periods as a result of sales.
• Net realized gains on investments of $4.1 million primarily related to realized gains on sales of Other Public Indian Investments ($6.4 million) and 360 ONE ($3.5 million), partially offset by a realized loss recorded on the conversion of NCML compulsorily convertible debentures into NCML common shares ($5.8 million).
• The company continued to buy back shares under its normal course issuer bid and during the first three months of 2023 purchased for cancellation 454,948 subordinate voting shares at a net cost of $5.8 million ($12.85 per subordinate voting share). Subsequent to March 31, 2023, the company purchased for cancellation 826,321 subordinate voting shares for a net cost of $10.7 million ($13.00 per subordinate voting share) under the terms of an automatic share purchase plan.
• The company recorded a performance fee recovery of $14.5 million for the first quarter of 2023 and at March 31, 2023 had accrued $27.2 million to the benefit of Fairfax Financial Holdings. The performance fee, if any, will only be finally determined on December 31, 2023 at the end of the three year measurement period.
• At March 31, 2023 common shareholders' equity was $2,598.3 million, or book value per share of $18.85, compared to $2,642.0 million, or book value per share of $19.11, at December 31, 2022, a decrease of 1.4%, primarily related to a net loss during the first quarter of 2023, partially offset by unrealized foreign currency translation gains.

Subsequent to March 31, 2023, the company entered into an agreement to acquire an additional 3.0% equity interest in BIAL for cash consideration of $75.0 million. The transaction is expected to close in the second quarter of 2023, subject to certain closing conditions. The company also agreed to acquire an additional 7.0% equity interest in BIAL for cash consideration of $175.0 million, subject to the satisfaction of certain performance conditions by BIAL which will be assessed subsequent to October 31, 2023.

Fairfax India is in strong financial health, with cash and marketable securities of approximately $326 million. There were 138.2 million and 139.7 million weighted average common shares outstanding during the first quarters of 2023 and 2022 respectively. At March 31, 2023 there were 107,815,952 subordinate voting shares and 30,000,000 multiple voting shares outstanding.

Fairfax India's detailed first quarter report can be accessed on its website.

Fairfax India Holdings Corporation is an investment holding company whose objective is to achieve long term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.

We seek Safe Harbor.