Mr. John Varnell reports

FAIRFAX INDIA HOLDINGS CORPORATION: FINANCIAL RESULTS FOR THE YEAR ENDED DECEMBER 31, 2023

Fairfax India Holdings Corp. had fiscal year 2023 net earnings of $371.8-million ($2.72 net earnings per diluted share), compared with 2022 net earnings of $191.4-million ($1.34 net earnings per diluted share). The company's book value per share at Dec. 31, 2023, of $21.85 increased compared with $20.89 at Sept. 30, 2023 ($19.11 at Dec. 31, 2022), through the realization of gains on the sales of investments and strong performance of the investment portfolio. The company's book value per share has grown at a compound annual growth rate of 9.2 per cent (9.6 per cent prior to the company's performance fee) from the initial public offering price of $10.00 per share. The company's growth in 2023 was supported by strong Indian equity markets and economic fundamentals. (Note: All dollar amounts in this press release are expressed in United States dollars except as otherwise noted.)

Highlights for 2023 (with comparisons with 2022, except as otherwise noted) included the following:

• Net change in unrealized gains on investments of $361.7-million (Q4 2023 -- $44.6-million) principally from increases in the fair values of the company's listed investments of $367.1-million, including CSB Bank ($188.8-million), IIFL Securities ($82.6-million), IIFL Finance ($78.7-million) and 5paisa ($24.1-million), and private company investments of $174.4-million including BIAL ($125.0-million), Seven Islands ($46.8-million), NSE ($30.1-million) and Jaynix ($16.8-million). These unrealized gains were partially offset by a decrease in the fair values of the company's investments in the private companies Sanmar ($33.2-million) and NCML ($16.1-million). The net change in unrealized gains on investments also included reversals of prior period gains upon the sales of IIFL Finance ($157.7-million) and 360 ONE ($17.7-million).
• Net realized gains on investments of $193.2-million (Q4 2023 -- $145.8-million) primarily related to realized gains on sales of IIFL Finance ($177.3-million) and 360 ONE ($16.6-million).
• The company continued to buy back shares under its normal course issuer bid and during 2023 purchased for cancellation 2,872,391 subordinate voting shares at a net cost of $37.2-million ($12.97 per subordinate voting share).
• During 2023 the company acquired an additional 10.0-per-cent equity interest in BIAL from Siemens Project Ventures GmbH in two transactions for total purchase consideration of $250.0-million. Following completion of the second closing, Fairfax India's aggregate share ownership in BIAL has increased to 64.0 per cent (20.4 per cent held by its wholly owned subsidiary and 43.6 per cent held by its indirect subsidiary, Anchorage Infrastructure Investments Holdings Ltd.) from 54.0 per cent last year.
• BIAL achieved notable recognition at the 2023 Prix Versailles by UNESCO. The airport's Terminal 2 was acknowledged as one of the "world's most beautiful airports" and received the esteemed "world special prize for an interior 2023."
• In accordance with the investment advisory agreement, which provides for the payment of a performance fee of 20 per cent of the increase in book value per share in excess of a hurdle rate of 5 per cent per annum, a performance fee of $110.2-million was earned by Fairfax Financial Holdings for the period from Jan. 1, 2021, to Dec. 31, 2023. The performance fee will be paid in cash in the first six months of 2024.
• Fairfax India is in strong financial health, with cash and marketable securities at Dec. 31, 2023, of approximately $209-million, prior to the sales of NSE. Additionally, on Dec. 4, 2023, DBRS Ltd. (Morningstar DBRS) upgraded the issuer rating and unsecured senior notes ratings of the company to BBB from BBB (low).
• During the fourth quarter of 2023 and the first quarter of 2024 the company entered into agreements to sell its equity interest in NSE for gross proceeds of approximately $189-million (15.7 billion Indian rupees). The original cost of the company's investment in NSE was $26.8-million. On Jan. 29, 2024, the company completed one of the sales and received gross proceeds of $132.3-million (11.0 billion Indian rupees). The remaining sales are subject to customary closing conditions and are expected to be completed in the first quarter of 2024.

There were 135.5 million and 138.5 million weighted average common shares outstanding during the fourth quarters of 2023 and 2022, respectively. At Dec. 31, 2023, there were 105,398,509 subordinate voting shares and 30 million multiple voting shares outstanding.

About Fairfax India Holdings Corp.

Fairfax India Holdings 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.