Mr. Prem Watsa reports

FAIRFAX INDIA HOLDINGS CORPORATION: SECOND QUARTER FINANCIAL RESULTS

Fairfax India Holdings Corp. had net earnings of $159.3-million in the second quarter of 2023 ($1.12 net earnings per diluted share), compared with a net loss of $69.7-million in the second quarter of 2022 (50-cent net loss per diluted share).

(Note: All dollar amounts in this press release are expressed in U.S. dollars except as otherwise noted. The financial results are derived from financial statements prepared using the recognition and measurement requirements of international financial reporting standards as issued by the International Accounting Standards Board, except as otherwise noted, and are unaudited. This press release contains certain non-generally accepted accounting principle and other financial measures, including book value per share, and cash and marketable securities, that do not have a prescribed meaning under IFRS and may not be comparable with similar financial measures presented by other issuers. See the glossary of non-GAAP and other financial measures in the company's interim report for the three and six months ended June 30, 2023, for further details.)

Highlights for the second quarter of 2023 included the following:

• Net change in unrealized gains on investments of $196.0-million, principally from an increase in the fair value of the company's investments in Bial ($51.4-million), Sanmar ($50.1-million), CSB Bank ($39.8-million), Fairchem Organics ($26.9-million), IIFL Finance ($20.4-million), Seven Islands ($17.9-million) and IIFL Securities ($10.9-million), partially offset by a decrease in the fair value of the company's investment in NCML ($4.1-million); net change in unrealized gains on investments also included reversals of prior-period unrealized gains on IIFL Finance ($29.3-million) and 360 One ($13.5-million) as a result of sales;
• Net realized gains on investments of $43.6-million related to sales of investments in IIFL Finance ($30.5-million) and 360 One ($13.1-million);
• On June 21, 2023, the company completed the acquisition of an additional 3.0-per-cent equity interest in Bial for cash consideration of $75.0-million;
• The company continued to buy back shares under its normal course issuer bid and, during the first six months of 2023, purchased for cancellation 1,571,929 subordinate voting shares at a net cost of $20.4-million ($12.96 per subordinate voting share);
• The company recorded a performance fee of $35.6-million for the second quarter of 2023 and at June 30, 2023, had accrued $63.0-million to the benefit of Fairfax Financial Holdings; the performance fee, if any, will only be finally determined on Dec. 31, 2023, at the end of the three-year measurement period;
• At June 30, 2023, common shareholders equity was $2,748.1-million, or book value per share of $20.10, compared with $2,642.0-million, or book value per share of $19.11, at Dec. 31, 2022, an increase of 5.2 per cent, primarily attributable to net earnings, unrealized foreign currency translation gains and the impact of share purchases for cancellation during the first six months of 2023.

Fairfax India is in strong financial health, with cash and marketable securities of approximately $287-million.

There were 137.2 million and 139.3 million weighted-average common shares outstanding during the second quarters of 2023 and 2022, respectively. At June 30, 2023, there were 106,698,971 subordinate voting shares and 30 million multiple voting shares outstanding.

Fairfax India's detailed second quarter report can be viewed at its website.

In addition to its second quarter financial results, the company also announces that following his retirement from HDFC Ltd., Deepak Parekh has resigned from the company's board, where he has served as an independent director since the company's inception.

Prem Watsa, chairman of Fairfax India, commented: "We would like to thank Deepak for his invaluable contribution to the growth of Fairfax India over the years. Fairfax India has benefited greatly from Deepak's in-depth knowledge of, and expertise in, Indian businesses, and we wish him well in his retirement."

Fairfax India 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.