Fairfax India Holdings Corporation

Second Quarter Financial Results

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(Note: All dollar amounts in this news release are expressed in U.S. dollars except as otherwise noted. The financial results are prepared using the recognition and measurement requirements of International Financial Reporting Standards, except as otherwise noted, and are unaudited.)

TORONTO, July 30, 2020 (GLOBE NEWSWIRE) -- Fairfax India Holdings Corporation (TSX: FIH.U) announces net earnings of $52.4 million in the second quarter of 2020 ($0.35 net earnings per diluted share), compared to a net loss of $55.5 million in the second quarter of 2019 ($0.36 net loss per diluted share), reflecting increased net unrealized gains on investments, partially offset by decreased realized gains on investments.

Highlights for second quarter of 2020 included the following:

• Net change in unrealized gains on investments of $70.5 million, principally from increases in market prices of the company's investments in the public companies, including CSB Bank ($65.9 million), Fairchem ($37.1 million), IIFL Securities ($14.0 million), 5paisa ($10.5 million), IIFL Wealth ($5.2 million), and Other Public Indian Investments ($11.7 million) partially offset by a decrease in the fair value of the company's private investments in Sanmar ($56.8 million), NSE ($14.5 million), and NCML ($7.7 million).
• On June 26, 2020 the company extended its $550 million secured term loan facility with a syndicate of Canadian banks to June 28, 2021 with an option to extend for an additional year.
• At June 30, 2020 common shareholders' equity was $2,220.0 million, or book value per share of $14.75, compared to $2,577.9 million, or book value per share of $16.89, at December 31, 2019, a decrease of 12.7%, primarily related to a net loss during the first six months of 2020 and unrealized foreign currency translation losses as a result of the weakening of the Indian rupee relative to the U.S. dollar.

During this period of uncertainty, Fairfax India remains in strong financial health, with undeployed cash and marketable securities of approximately $180 million.

The company is continuing to buyback shares under its normal course issuer bid and during the first six months of 2020 purchased for cancellation 2,093,846 subordinate voting shares at a net cost of $19.6 million ($9.34 per subordinate voting share).

There were 151.3 million and 152.6 million weighted average common shares outstanding during the second quarters of 2020 and 2019 respectively. At June 30, 2020 there were 120,537,635 subordinate voting shares and 30,000,000 multiple voting shares outstanding.