Annual Meeting April 11, 2019 Forward-Looking Statements This - PowerPoint PPT Presentation

Annual Meeting April 11, 2019

Forward-Looking Statements This Presentation has been prepared for informational purposes only from information supplied by Fairfax India Holdings Corporation (“Fairfax India” or the “Company”) and from third- party sources indicated herein. Such third-party information has not been independently verified. The Company makes no representation or warranty, expressed or implied, as to the accuracy or completeness of such information. Any graphs, tables or other data demonstrating the historical performance of Fairfax India or its Indian Investments contained in the presentation are intended only to illustrate past performance and are not necessarily indicative of the future performance of Fairfax India or its Indian Investments. This Presentation may contain forward-looking information 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’’. We caution readers not to place undue reliance on these forward-looking statements which speak only as of their dates. We are under no obligation to update or alter such forward-looking statements as a result of new information, future events or otherwise, except as may be required by applicable law. Forward-looking statements are based on the opinions and estimates of the Company as of the date of this Presentation, 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; 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; economic risk; and trading price of common shares relative to book value per share risk. Additional risks and uncertainties are described in the Company’s annual information form 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. The preparation of financial statements requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, the reported amounts of income and expenses and the calculation of the Net Asset Value of the Company during the reporting periods. Financial information provided throughout this Presentation is prepared in accordance with IFRS, unless otherwise noted.

Bangalore Terminal, 2008

Bangalore Terminal, 2018

Meerut Highway, 2014

Meerut Highway, 2018 6

Growth in Book Value Compound Annual Growth Rate At December 31, 2018 4 Years 1 Year (Since IPO) Fairfax India's book value per share (4.1%) 8.7% USD S&P BSE Sensex 30 (3.0%) 2.5% % Change INR / USD (8.6%) (11.3%) Note: Fairfax India’s 4 year compound annual growth in book value per share is calculated since its January 2015 IPO at $10 per share 7

Asian Equity Markets in 2018 (% change, in US$ terms) China (29.3%) Sri Lanka (20.3%) Hong Kong (13.8%) Singapore (12.3%) Vietnam (11.2%) Thailand (10.8%) Indonesia (8.8%) Malaysia (7.6%) India (3.0%) 8

Major Indian Equity Indices in 2018 % Change (in US$ terms) Fairfax India's book value per share (4.1%) S&P BSE Sensex 30 (3.0%) Nifty50 (5.5%) S&P BSE 500 (11.2%) BSE midcap (20.5%) 9

2018 Results ($ millions, except for per share data) 2018 2017 Income 167 610 Net earnings 96 453 Earnings per diluted share 0.63 2.94 Investments (excluding cash) 2,661 2,636 Common shareholders' equity 2,118 2,132 Book value per share 13.86 14.46 10

India’s Structural Reforms Income Increased  Demonetization – curtailed shadow economy  Goods and Services Tax – improving direct tax collection  Disinvestment – from public sector undertaking companies Expenses Decreased  Insolvency and Bankruptcy Code – improve flow of capital and recapitalize public sector banks Jan Dhan, Aadhaar, Mobile (JAM) – direct transfer of financial  benefits to beneficiaries’ bank account  Reduction in Subsidies 11

India’s Structural Reforms – Improvements in Deficits Fiscal Deficit (% of GDP) 5.0 4.6 4.6 4.2 3.8 3.4 3.4 Fiscal deficit as a % of GDP 3.0 2014 2015 2016 2017 2018 2019 Current Account Deficit (% of GDP) 3.5 3.3 3.0 2.5 2.0 1.5 1.2 1.0 0.5 Current account deficit as a % of GDP 0.0 2014 2015 2016 2017 2018 2019 (1) Sources: Bloomberg, IIFL Asset Management. All data is for the financial years ending March 31 st . 12

India’s Economy – Global Comparison 7 th largest country by GDP – expected to be in the top 3 by 2030 (1)  Nominal GPD 2018 (US$ trillions) 1. United States 20.4 India’s GDP is projected to grow to ~$5.9 trillion by 2030, 2. China 14.1 or 6.4% annually 3. Japan 5.2 4. Germany 4.0 5. United Kingdom 3.0 6. France 3.0 7. India 2.8 (1) Sources: HSBC – The world in 2030, IIFL Asset Management 13

India’s Economy – Global Comparison 7 th largest country by market capitalization (1)  Market Capitalization (US$ trillions) 26.9 5.4 5.4 4.8 3.1 2.2 2.1 2.0 USA Japan China Hong Kong UK France India Germany (1) Sources: Bloomberg, IIFL Asset Management 14

India’s Per Capita Income at an Inflection Point  Once China reached $2,000 per capita GDP, it took only 6 years to triple to $6,300 and another 6 years to grow to $9,600  India’s GDP per capita is following China’s with a lag of ~12 years  China reached $2,000 in 2006, while India just surpassed that mark in 2018 China GDP per capita India GDP per capita 16,000 (US$ at current price) 3,500 (US$ at current price) 13,780 3,040 14,000 3,000 12,000 2,500 10,000 2,016 9,633 2,000 8,000 1,500 6,000 6,329 1,000 463 4,000 276 959 500 2,000 309 2,111 0 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020E 2022E 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020E 2022E (1) Sources: IMF, IIFL Asset Management 15

India – Compounding Machine Number of Companies with 20+% % of Companies with 25+% 20 year CAGR in stock price 10 year CAGR in stock price 28% 93 9% 17 3 3 1% > 25% CAGR India BSE US S&P 500 China Japan TPX 500 SCHOMP 500 India US China 1500 (1) Source: IIFL Asset Management 16

Summary of Investments Amount Fair Value at % of Annual Rate ($ millions) Ownership Invested Dec 31, 2018 Portfolio of Return (1) IIFL (including 5paisa) 26.5% 277 625 27% 35.8% BIAL 54.0% 653 704 30% 5.2% Debentures Sanmar 300 610 26% 31.2% and 30.0% NCML 89.5% 174 165 7% (1.7%) Fairchem 48.8% 74 97 4% 11.5% NSE 1.0% 27 60 3% 44.4% Saurashtra 51.0% 30 25 1% (9.6%) Catholic Syrian Bank - first tranche 19.7% 60 63 3% 27.3% Investments completed at December 31, 2018 1,595 2,350 100% Seven Islands - completed Mar 2019 41.4% 72 CSB - payable within 12-18 months 110 Total investments completed and committed 1,777 (1) Return calculated using the internal rate of return 17

Fairfax India – Intrinsic Value 5 Year Compound IIFL Holdings Limited Annual Growth Book value per share 20% Earnings per share 25% Fairfax India average cost per share Rs 218 Current market price per share (1) Rs 452 Price/earnings ratio on expected earnings 13.3x (1) As of April 5, 2019 18