FIH.U Fairfax India Holdings Corporation

Fairfax India Holdings Corporation (TSX: FIH.U) announces net earnings of $159.3 million in the second quarter of 2023 ($1.12 net earnings per diluted share), compared to a net loss of $69.7 million in the second quarter of 2022 ($0.50 net loss per diluted share).

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% 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 December 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 to $2,642.0 million, or book value per share of $19.11, at December 31, 2022, an increase of 5.2%, 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 30,000,000 multiple voting shares outstanding.

Fairfax India's detailed second quarter report can be accessed at its website www.fairfaxindia.ca.

In addition to its second quarter financial results, the company also announces that following his retirement from HDFC Limited, Mr. 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 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.

For further information, contact:	John Varnell, Vice President, Corporate Affairs
	(416) 367-4755

This press release may contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may relate to the company's or an Indian Investment's future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividends, plans and objectives of the company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities of the company, an Indian Investment, or the Indian market are forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are based on our opinions and estimates as of the date of this press release, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the following factors: COVID-19 pandemic and the conflict in Ukraine; oil price risk; geographic concentration of investments; foreign currency fluctuation; volatility of the Indian securities markets; investments may be made in foreign private businesses where information is unreliable or unavailable; valuation methodologies involve subjective judgments; financial market fluctuations; pace of completing investments; minority investments; reliance on key personnel and risks associated with the Investment Advisory Agreement; lawsuits; use of leverage; significant ownership by Fairfax may adversely affect the market price of the subordinate voting shares; weather risk; taxation risks; emerging markets; MLI; economic risk; and trading price of subordinate voting shares relative to book value per share risk. Additional risks and uncertainties are described in the company's annual information form dated March 10, 2023 which is available on SEDAR at www.sedar.com and on the company's website at www.fairfaxindia.ca. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the company. These factors and assumptions, however, should be considered carefully.

Although the company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The company does not undertake to update any forward-looking statements contained herein, except as required by applicable securities laws.