Fairfax India Holdings Corporation: Financial Results for the Year Ended December 31, 2024

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

(Note: All dollar amounts in this press release are expressed in U.S. dollars except as otherwise noted. The financial results are derived from unaudited financial statements prepared using the recognition and measurement requirements of International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS^® Accounting Standards"), except as otherwise noted. This press release contains certain non-GAAP and other financial measures, including book value per share and cash and marketable securities, that do not have a prescribed meaning under IFRS Accounting Standards and may not be comparable to similar financial measures presented by other issuers. See "Glossary of non-GAAP and other financial measures" at the end of this press release for further details.)

/EIN News/ -- TORONTO, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Fairfax India Holdings Corporation (TSX: FIH.U) announces fiscal year 2024 net losses of $41.2 million ($0.30 net loss per diluted share), compared to net earnings of $371.8 million in fiscal year 2023 ($2.72 net earnings per diluted share). At December 31, 2024 the company's book value per share decreased 4.1% to $20.96 from $21.85 at December 31, 2023 primarily due to unrealized foreign currency translation losses as the U.S. dollar strengthened against the Indian rupee.

Highlights for 2024 included the following:

• Net realized gains on investments of $218.9 million primarily related to realized gains on sales of NSE ($167.3 million) and partial sales of CSB Bank ($43.0 million).
• Excluding reversals of prior period unrealized gains primarily related to the sales of NSE ($167.2 million) and CSB Bank ($56.3 million), the company recorded a net change in unrealized gains on investments of $55.1 million, principally from increases in the fair values of the company's listed investment in IIFL Capital (formerly IIFL Securities) ($183.9 million) and private company investments in BIAL ($78.6 million), Maxop ($43.1 million) and Jaynix ($34.5 million), partially offset by decreases in the fair value of the company's listed investments in IIFL Finance ($124.2 million) and CSB Bank ($62.2 million), and private company investment in Sanmar ($95.1 million).
• Interest and dividend income of $61.5 million primarily related to dividends received from Seven Islands ($29.9 million) and Saurashtra ($4.4 million), and interest earned on bonds ($16.3 million), primarily Government of India bonds.
• On October 11, 2024 the company completed its previously announced investment in Global Aluminium Private Limited for a purchase price of $82.7 million (7.0 billion Indian rupees).
• On December 3, 2024 the company entered into an agreement to acquire an additional 10.0% equity interest in BIAL through its wholly-owned subsidiary for purchase consideration of $255.0 million (to be paid in three installments over 18 months, with the initial installment of $84.2 million to be paid on closing). On January 28, 2025 the company obtained shareholder approval for a one-time deviation from its investment concentration restriction in order to complete the additional BIAL purchase. The transaction is expected to close during the first quarter of 2025.
• The company continued to buy back shares under its normal course issuer bid and during 2024 purchased for cancellation 559,047 subordinate voting shares at a net cost of $8.4 million ($15.07 per subordinate voting share).

Fairfax India is in strong financial health, with cash and marketable securities at December 31, 2024 of $214.4 million and an undrawn $175.0 million revolving credit facility.

FAIRFAX INDIA HOLDINGS CORPORATION
95 Wellington Street West, Suite 800, Toronto, Ontario, M5J 2N7 Telephone: 416-367-4755

There were 135.0 million and 135.5 million weighted average common shares outstanding during the fourth quarters of 2024 and 2023, respectively. At December 31, 2024 there were 104,839,462 subordinate voting shares and 30,000,000 multiple voting shares outstanding.

Unaudited balance sheets, earnings (loss) and comprehensive income (loss) information follow and form part of this press release.

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: 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; disruption of the company's information technology systems; 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; trading price of subordinate voting shares relative to book value per share risk; and economic disruptions from the after-effects of the COVID-19 pandemic and the conflicts in Ukraine and the Middle East. Additional risks and uncertainties are described in the company's annual information form dated March 8, 2024 which is available on SEDAR+ at www.sedarplus.ca 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.

Information on
CONSOLIDATED BALANCE SHEETS
as at December 31, 2024 and December 31, 2023
(unaudited - US$ thousands)
	December 31, 2024		December 31, 2023
Assets
Cash and cash equivalents		59,322		174,615
Bonds		180,507		63,263
Common stocks		3,381,206		3,581,043
Total cash and investments		3,621,035		3,818,921
Interest and dividends receivable		8,849		1,367
Income taxes refundable		174		220
Other assets		722		1,027
Total assets		3,630,780		3,821,535
Liabilities
Accounts payable and accrued liabilities		1,300		912
Accrued interest expense		8,611		8,611
Income taxes payable		5,379		—
Payable to related parties		10,099		120,858
Deferred income taxes		149,780		108,553
Borrowings		498,349		497,827
Total liabilities		673,518		736,761
Equity
Common shareholders' equity		2,826,495		2,958,718
Non-controlling interests		130,767		126,056
Total equity		2,957,262		3,084,774
		3,630,780		3,821,535
Book value per share	$	20.96	$	21.85

Information on
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
for the fourth quarters and years ended December 31, 2024 and 2023 (unaudited - US$ thousands except per share amounts)
	Fourth quarter						Year ended December 31,
		2024			2023		2024			2023
Income
Interest		4,049			3,511		19,504			16,833
Dividends		32,769			12,208		41,946			28,831
Net realized gains on investments		217			145,758		218,871			193,203
Net change in unrealized gains (losses) on investments		(23,929	)		44,581		(167,654	)		361,702
Net foreign exchange gains (losses)		(10,282	)		322		(12,616	)		(1,713	)
		2,824			206,380		100,051			598,856
Expenses
Investment and advisory fees		10,415			10,720		40,405			39,382
Performance fee		—			27,849		—			69,385
General and administration expenses		1,572			1,884		7,914			12,672
Interest expense		6,380			6,380		25,521			25,521
		18,367			46,833		73,840			146,960
Earnings (loss) before income taxes		(15,543	)		159,547		26,211			451,896
Provision for income taxes		15,444			22,794		58,948			68,050
Net earnings (loss)		(30,987	)		136,753		(32,737	)		383,846
Attributable to:
Shareholders of Fairfax India		(35,782	)		134,968		(41,173	)		371,770
Non-controlling interests		4,795			1,785		8,436			12,076
		(30,987	)		136,753		(32,737	)		383,846
Net earnings (loss) per basic and diluted share	$	(0.27	)	$	1.00	$	(0.30	)	$	2.72
Shares outstanding (weighted average)		134,994,563			135,464,165		135,165,840			136,818,139

Information on
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
for the fourth quarters and years ended December 31, 2024 and 2023 (unaudited - US$ thousands)
	Fourth quarter				Year ended December 31,
	2024		2023		2024		2023
Net earnings (loss)	(30,987	)	136,753		(32,737	)	383,846
Other comprehensive loss, net of income taxes
Item that may be subsequently reclassified to net earnings (loss)
Unrealized foreign currency translation losses, net of income taxes of nil (2023 - nil)	(63,961	)	(6,485	)	(85,545	)	(18,614	)
Comprehensive income (loss)	(94,948	)	130,268		(118,282	)	365,232
Attributable to:
Shareholders of Fairfax India	(96,918	)	128,727		(122,993	)	353,913
Non-controlling interests	1,970		1,541		4,711		11,319
	(94,948	)	130,268		(118,282	)	365,232

GLOSSARY OF NON-GAAP AND OTHER FINANCIAL MEASURES 
Management analyzes and assesses the financial position of the consolidated company in various ways. Certain of the measures included in this press release, which have been used consistently and disclosed regularly in the company's Annual Reports and interim financial reporting, do not have a prescribed meaning under IFRS Accounting Standards and may not be comparable to similar measures presented by other companies. Those measures are described below.

Book value per share - The company considers book value per share a key performance measure in evaluating its objective of long term capital appreciation, while preserving capital. This measure is also closely monitored as it is used to calculate the performance fee, if any, to Fairfax Financial Holdings. This measure is calculated by the company as common shareholders' equity divided by the number of common shares outstanding.

Cash and marketable securities - This measure is calculated by the company as the sum of cash, cash equivalents, short term investments, Government of India bonds and Other Public Indian Investments, in addition to short term receivables from investment custodians relating to dividends received on behalf of the company. The company uses this measure to monitor short term liquidity risk.