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Annual Meeting
April 14, 2016
Note: All financial disclosure in this presentation is, unless otherwise noted, in US$
Forward-Looking Statements
2
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 affiliates 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 affiliates.
Any statements made by us or on our behalf may constitute forward-looking statements or forward-looking information and are made pursuant to the “safe harbor”
provisions of the United States Private Securities Litigation Reform Act of 1995 and comparable provisions of Canadian securities laws. The words “believe,” “anticipate,”
“project,” “expect,” “plan,” “intend,” “predict,” “estimate,” “will likely result,” “will seek to” or “will continue” and similar expressions identify forward-looking statements. These
forward-looking statements relate to, among other things, our plans and objectives for future operations and underwriting profits. 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 laws.
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: taxation of the Company and its subsidiaries; substantial loss of
capital; long-term nature of investment; limited number of investments; geographic concentration of investments; potential lack of diversification; financial market
fluctuations; pace of completing investments; control or significant influence position risk; minority investments; ranking of Company investments and structural
subordination; follow-on investments; prepayments of debt investments; risks upon dispositions of investments; bridge financings; reliance on key personnel; effect of fees;
performance fee could induce Fairfax to make speculative investments; operating and financial risks of investments; allocation of personnel; potential conflicts of interest;
employee misconduct at the portfolio advisor could harm the Company; valuation methodologies involve subjective judgments; lawsuits; foreign currency fluctuation;
derivative risks; unknown merits and risks of future investments; resources could be wasted in researching investment opportunities that are not ultimately completed;
investments may be made in foreign private businesses where information is unreliable or unavailable; illiquidity of investments; competitive market for investment
opportunities; use of leverage; investing in leveraged businesses; regulation; investment and repatriation restrictions; aggregation restrictions; restrictions relating to debt
securities; pricing guidelines; emerging markets; corporate disclosure, governance and regulatory requirements; legal and regulatory risks; volatility of the Indian securities
markets; political, economic, social and other factors; governance issues risk; Indian tax law; changes in law; exposure to permanent establishment, etc.; enforcement of
rights; smaller company risk; due diligence and conduct of potential investment entities; Asian economic risk; reliance on trading partners risk; natural disaster risks;
government debt risk; and economic 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 revenues 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.
Fairfax India Holdings Corporation (“FIH”)
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December 31, 2015
Book value per share $ 9.50
Closing share price $ 10.10
Earnings per share $ 0.42
(millions)
Revenue $ 65.3
Net earnings $ 40.9
Investments $ 978.6
Total assets $ 1,025.4
Common shareholders' equity $ 1,013.3
(millions)
Shares outstanding 106.7
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An investment company focused on making
outstanding long-term returns through
investments in Indian businesses
Unique opportunity to co-invest with Fairfax
Financial Holdings (FFH) in India
Alignment of interest - FFH’s long-term
investment of $300 million in FIH
What is Fairfax India Holdings
Corporation?
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New, business-friendly government
Strong growth profile
Attractive demographic trends
Why India?
Compelling Investment Destination
HWIC Asia Fund – Class A is the Fairfax group investment
vehicle for investments in Asia, predominately India
Why Fairfax Financial?
Superior Record Investing in India
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HWIC Asia
Fund BSE
Annual Total Return (US$) Class A Index
5 year 6.8% (3.0%)
10 year 10.3% 6.6%
Since Inception - Feb ‘00 19.6% 7.5%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2000 2002 2004 2006 2008 2010 2012 2014
Monthly Performance Through December 2015(US$100 Invested in Feb 2000)
BSE Index HWIC Asia Fund Class A
Why Fairfax Financial?
Long-standing Deep Network
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Founded in 2000, ICICI Lombard is
the largest private sector general
insurance company in India
Joint Venture between Fairfax (35%)
and ICICI Bank (65%)
LTM gross premiums written of $1.2
billion(1)
5,433 employees in 267 offices(1)
(1) Period ended September 30, 2015
Fairfax currently owns 68% of
Thomas Cook India; listed on the
Bombay Stock Exchange; purchased
in 2011
Business segments include: (i)
licensed retail and wholesale foreign
exchange; and (ii) retail and corporate
travel services
Total revenue of $76 million
253 locations across 99 cities
Why Fairfax Financial?
Long-standing Deep Network
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Thomas Cook India invested ~$47
million for 74% ownership
Quess has diversified operations
focused on: (i) human resources
services; (ii) facilities management;
(iii) skills development; and (iv) food
and hospitality services
108,000 employees and revenue of
$482 million(1)
43 offices in 24 cities(1)
(1) For the year ended December 31, 2015
Thomas Cook India recently acquired
Sterling Holiday Resorts India
Time-share based vacation ownership
company
Revenue of $35 million(1)
2,179 employees and 24 resorts(1)
Why Fairfax Financial?
India Team and Advisors
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Harsha Raghavan
Fairbridge
Sumit Maheshwari
Fairbridge
Ashwin Ramesh
Primary Real
Estate Advisors
Madhavan
Menon
Thomas Cook
Ajit Isaac
Quess Ramesh
Ramanathan
Sterling
S. Gopalakrishnan
ICICI Lombard
Sarvjit Singh Bedi
Fairbridge
Bhargav
Dasgupta
ICICI Lombard
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Modi’s Achievements
in First 18 Months
India is in the throes of making
monumental transformational
changes for the better
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Summary of Investments
NCML 149
IIFL Holdings 202
Adi Finechem 19
Investments completed 370
($ millions)
BIAL 250
Sanmar 250
Investments committed 500
Total completed and committed 870
NATIONAL COLLATERAL
MANAGEMENT SERVICES LIMITED
(“NCML”)
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NCML – Business Overview
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Largest private sector player in India in warehousing and
collateral management of agri commodities
Storage capacity of over 1.3 million tons across 960
warehouses in 18 states
Collateral management with over 50% market share in
India (AUM of ~$1.4 billion)
Procurement - purchased $108 million worth of agri-
commodities over FY12-FY15
Testing, certification & inspection
Largest player in India in weather intelligence with over
3,300 weather stations across 15 states
NCML – Why We Invested
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Strong management team
CEO is former IAS officer with 28 years of experience in
administration and has been CEO for 7 years
Entire top management team has been with company
since inception
Setting up a Non Banking Financial Company (NBFC) to
provide financing against warehoused agri commodities
Massive growth potential
Agri warehousing in India still not upgraded to modern
standards
NCML – Transaction
FIH acquired 88% of NCML’s total equity shares for
$149 million
$31 million injected into company
$118 million paid to former shareholders
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NCML – Financial Summary
(Rs b illions - Indian GAAP) 2012 2015 CAGR
Balance Sheet
Total assets 2.9 5.5
Shareholders' equity 1.7 2.8 18%
Income Statement
Revenue 2.0 4.0 25%
Net earnings 0.1 0.3 37%
For the years
ended March 31
IIFL HOLDINGS LIMITED (“IIFL”)
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IIFL – Business Overview
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Founded by Nirmal Jain in 1995 and listed on Bombay
Stock Exchange in 2005
More than 2,500 locations across 850 cities and towns,
employing over 13,000 employees
Offices in London, New York, Houston, Geneva, Hong
Kong, Dubai, Singapore and Mauritius
IIFL – Business Overview
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NBFC Business (non-banking financial corporation)
Well-diversified customer lending segments: corporate,
commercial vehicles, gold, mortgages and medical
equipment
Wealth Management
Fastest growing business in group with four year CAGR of
45% on assets under management and 92% on profit after
tax
Agency Business
Consists of retail and institutional broking, financial
products distribution, mutual fund management and
investment banking
IIFL – Why We Invested
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Nirmal Jain and management own about 30%
Exceptional track record and managerial depth
Wide distribution network
Low valuation – General Atlantic (a U.S. private equity
fund) acquired 22% of wealth management business for
$173 million valuing just this division at $800 million. We
paid a valuation of $930 million for the whole company
IIFL – Transaction
Currently, FFH and FIH together own 36%
FFH has been a 14% shareholder of IIFL since 2010
FIH acquired 22% of IIFL through an open offer at Rs
195 per share for $202 million
Chandran Ratnaswami has been on the board since
2012
Nirmal Jain, Chairman, will continue to run the business
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IIFL – Financial Summary
(Rs b illions - Indian GAAP) 2012 2015 CAGR
Balance Sheet
Total assets 95.0 193.7
Shareholders' equity 17.9 28.2 16%
Income Statement
Revenue 18.9 36.7 25%
Net earnings 1.4 4.5 49%
For the years
ended March 31
BANGALORE INTERNATIONAL
AIRPORT LIMITED (“BIAL”)
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BIAL – Business Overview
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Operational since 2008, it is India’s 3rd largest airport and
the largest in South India
Current capacity is about 20 million passengers with
plans to grow to 60 million by 2030
Owns a concession to operate the airport for 30 years
with the option to extend for another 30 years
BIAL has a regulated return of 16% from 100% of aero
revenue and 40% of non-aero revenue
About 450 acres of land can be monetized over time
BIAL – Why We Invested
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Bangalore is the 3rd largest city in India with a population
of 12 million and is often referred to as the Silicon Valley
of India
EBITDA margins are attractive with strong pre-expansion
capital cash flows
Real estate development opportunity is attractive
because of its location
FIH and FFH will collectively purchase for $330 million
33% of the total 43% owned by the GVK Group
The GVK Group will continue to manage the airport
Other significant shareholders are Siemens (26%),
Zurich Airports (5%) and the Government of India and
Karnataka (26%)
26
BIAL – Transaction
BIAL – Financial Summary
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(Rs b illions - Indian GAAP)
Mar. 31,
2012
Dec. 31,
2015
(estimate)
CAGR
Balance Sheet
Total assets 24.8 37.0
Shareholders' equity 6.0 11.5 24%
Income Statement
Revenue 6.4 11.0 20%
Net earnings 1.6 2.6 17%
For the twelve
months ended
SANMAR CHEMICALS GROUP
(“Sanmar”)
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Sanmar – Business Overview
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The Sanmar Group is a South India based based, fourth
generation family owned and professionally managed
company with an asset base of $1.5 billion
The Sanmar Chemicals Group consists of operating
companies in India and Egypt, producing Poly Vinyl
Chloride (PVC) and Caustic Soda
The top 3 Indian players account for ~90% of India’s
domestic PVC manufacturing capacity and Sanmar is the
2nd largest PVC player in India
Sanmar – Why We Invested
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Strong management team with technical and operational
expertise developed over 45 years running PVC and
Caustic Soda businesses
Capacity expansion planned in India and Egypt will be
completed to supply growing demand for PVC in India,
Middle East and parts of Europe
FIH helping restructure the balance sheet necessitated
by debt assumed for investment into Sanmar Egypt
FIH and FFH will lend the rupee equivalent of $300
million by way of 7-year non-convertible debentures
FIH will also get a 30% equity stake in Sanmar
N Sankar (Chairman), N Kumar (Vice Chairman) and
Vijay Sankar (Deputy Chairman) continue to lead
Sanmar supported by the existing strong management
team
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Sanmar – Transaction
Sanmar – Financial Summary
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(Rs b illions - Indian GAAP)
2012 2016
(estimate)
CAGR
Balance Sheet
Total assets 74.2 108.8
Debt 48.2 72.4
Income Statement
Revenue 29.6 37.1 6%
EBITDA 2.5 4.3 15%
For the years
ended March 31
ADI FINECHEM LIMITED(“Adi”)
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Adi – Business Overview
34
Founded by Nahoosh Jariwala, the current CEO, in 1985
and listed on Bombay Stock Exchange in 1995
Manufactures a range of oleo chemicals from the waste
products generated during processing of soft oils
Products used in resins, paints, inks, adhesives,
cosmetics and natural foods and vitamins
CEO and Board with 18% ownership
Strong management with outstanding track record
Low cost producer using locally and readily available
industrial waste to create value added products
Unique technology developed in-house
35
Adi – Why We Invested
FIH acquired 45% of Adi for $19 million
Nahoosh Jariwala, Founder and CEO, continues to lead
the company along with a strong management team
36
Adi – Transaction
37
Adi – Financial Summary
(Rs b illions - Indian GAAP) 2012 2015 CAGR
Balance Sheet
Total assets 0.5 1.0
Shareholders' equity 0.2 0.6 34%
Income Statement
Revenue 1.0 1.5 16%
Net earnings 0.1 0.1 23%
For the years
ended March 31
