Fairfax India Holdings Corporation ($FIHU)

Well, good morning, everyone. Good to see you all. So welcome to Fairfax India's Annual Shareholders Meeting. We're going to go through the formal part now, and then we'll move on to [indiscernible] in my part of the presentation. I am Ben Watsa, Chairman of Fairfax India, and I will act as Chairman of this meeting. I shall ask Jennifer Pankratz, General Counsel and Corporate Secretary of Fairfax India to act as Secretary to the meeting. I shall also appoint Shirley Tom, Louise Waltenbury of Computershare Trust Company of Canada, to act as scrutineers and to compute the votes of any polls taken at this meeting and thereon, and to report thereon to me as Chairman. I can report that as a result of reviewing an affidavit of mailing and preliminary report of the scrutineers, I am satisfied that notice of this meeting has been duly given and that a quorum is present and that this meeting is, therefore, properly called and constituted. I propose to move quickly through the [Audio Gap] 2025, which includes the corporation's financial statements for its year ended December 31, and 2025 and 2024, the report of the auditor, PricewaterhouseCoopers on the 2025 statements. In addition, I declare the total number of votes attached to the shares represented at this meeting by proxy, which have been directed to be voted in favor of each matter to be considered at the meeting. In each case, not less than 95% of all votes that may be cast on such matters at this meeting. Voting today will be conducted by electronic ballot for those attending virtually and by a show of hands for those attending in the room. I will ask that balloting be open to registered shareholders and appointed proxy holders. The polls are now open on the platform at this point. Able to see -- we'll be able to see on the scene, all motions to be brought forth at this meeting. Following the presentation of the motion for [indiscernible] will confirm for us when the polls have closed. Once the electronic [indiscernible] with your consent, I will now move directly to the election of the directors. I now invite nominations for directors.

I am Debbie Chalke, and I nominate as directors of the corporation for the ensuing year; Christopher [indiscernible], Sharmila Karve, Jason Kenney, Sumith Maheshwari, William McFarland. Satish Chandran Ratnaswami, Gopal [indiscernible], Lauren Templeton, Benjamin Watsa and Prem Watsa.

Thank you. Fairfax India's bylaws require that nominations of directors and shareholders be received by the corporation at least 30 days in advance of the meeting in order to be valid. As no nominations for directors, other than those set forth in Management Information Circular were received prior to the deadline, the nominations are now closed. As the number of directors nominated is exactly the number to be elected, I confirm that those 11 nominees are proposed for election as directors of the corporation, given the hybrid meeting and the fact that we will conduct also conduct a virtual load. We will have a vote on this together with the next resolution. I now invite a resolution regarding the appointment of an auditor.

I am Jennifer Pankratz and I move that PricewaterhouseCooper LLP be appointed as auditor of the corporation to hold office until the next annual meeting.

I second the motion.

For those attending in person, I would ask that you please vote by a show of hands. All in favor? Contrary? [Voting]

Okay. We will now take a brief pause for 60 seconds to allow registered holders and proxy holders to complete their electronic voting on the motions brought forth at this meeting.

Mr. Chairman, the voting is now complete, and the polls are closed.

I been advised by the scrutineers that the proxies deposited for the meeting have been voted. I can confirm the nominated directors have been appointed as directors of the corporation to hold office until the next annual. In addition, I confirm that PricewaterhouseCoopers has been appointed as auditor of the corporation to hold office until the next meeting. We will file a report on [indiscernible] setting out voting results following the meeting. I propose now to terminate this meeting. After that, Go Poll and I would like to talk to you about the operations, and then we will proceed with our Q&A session. I now invite a motion for termination.

I move that this meeting be terminated.

I second the motion.

The meeting is now terminated. Okay. Now good morning, ladies and gentlemen, and a warm welcome to the 11th Annual Meeting of Fairfax India. The privilege to see all of you. I am Ben Watsa, as I said before, Chairman of Fairfax India. And Fairfax India remains the first and only publicly listed company in Canada designed explicitly for sustained large-scale investment. And so I just wanted to walk you through, frame the discussion at a high level. My part today has 4 items: first, an update on India's progress and describing the environment in which our investment companies [indiscernible]. Looking at Fairfax India, the vehicle and the valuation Fairfax India is available at. And then Go [indiscernible] will take you through Fairfax India and our investing company -- our operating companies in more detail. After our remarks, we'll open it up to you, our shareholders for questions. And as always, all the talent of Fairfax India is in the room, including Fairbridge, our on-the-ground team in India led by Sumit, plus the managers of our businesses we've invested in. So we look forward to the discussion. So we're going to start with the comping opportunity. And this shows the 25-year market returns for the BSC 500. India's 500 largest companies compared to the S&P 500, America's 500 largest companies in U.S. dollars. Now Prime Minister Modi has been an important contributor to India's progress, including supporting a more business-friendly environment and bringing more people into the fuller economic participation. But the point of this slide is broader than any 1 leader. Indian equities have compounded strongly across different political cycles. They have not moved in a straight line, but over long periods of time, comping has been very powerful, including outperforming the U.S. over the last 25 years, despite its success with technology over the last decade. The next 2 slides have been updated from last year, and we're comparing India to China, the U.S., and we have Canada because we live there in the world. And as a reminder, Canada has 42 million people, and I gave you this insight last year, every 2 years, more than 42 million people are born ] in India. What makes India so unusual is it's not just the growth, it is the growth at scale. Plenty of countries can grow largely from -- large from a small base, but few can compound at India's rate with a population at large 1.5 billion people, the largest in the world. and the economy is already a meaningful size at over $4 trillion. India lags China by about 17 to 18 years in economic development, but you can see India where India is [indiscernible] by using China as a guide. India's much higher GDP growth rate will lead to higher per capita GDP to will show you a throughout the population. But the combination of inclusion and rising incomes is what makes the opportunity so compelling for long-term investors. Now here, we show India's progress to becoming the third largest economy in the world. It's in dark blue. Now India's GDP could reach $10 trillion in the next decade, meaning 2035, roughly 5x when we started Fairfax India in 2015. This is an enormous change in such a short relative period of time. India is now recognized as a market of substantial scale capable of attracting global capital, delivering not just competitive returns, but world-leading returns and offering decades of growth. We think the move to becoming the world's third largest economy will reinforce that. Despite the tariffs in 2025 to more recent challenges in 2026, it wasn't as smooth as -- we've perhaps hoped like AI, high oil prices with the war. India still should reach the third largest economy in 2029 overtaking Germany. Now this chart compares real GDP growth rates for 2025, showing India standing out amongst emerging markets. We also show the actual GDP size of each country within the bars at the bottom. India is a much larger economy in most emerging markets outside of China. And India is growing much faster than most. An economy like Vietnam is 1/5 the size. Now this chart shows the next 5 years. The economy is what they look like in 2030. And India is also projected to grow continue growing at attractive rates over the next 5 years. That matters because it gives businesses operating in India, a very strong underlying tailwind. It is easier to build good businesses in an economy that is expanding very quickly, and that will continue to give us opportunities to invest in more entrepreneurs like the ones in the Fairfax India portfolio. Before I move on to the next slide in Vietnam before I move on to the next slide, look at Vietnam there at $700 billion. That's what it's protected to be that size in 2030. And India is at 6.6 trillion. Now India's annual GDP incremental growth is becoming country-size and this chart makes that visual. By 2030, India's nominal GDP is forecast to grow at 10.8%. So that includes inflation. And it will add roughly $600 billion in a single year. To put that in perspective, the single year's gain exceeds the entire economies of Singapore, the UAE, Thailand, Vietnam and nearly every country is shown on the list. It is as if India is adding one of these nations to its economy every single year. The growth level India has reached is simply astounding. Now let's go to why Fairfax India is unique. This portfolio chart shows Fairfax India's $40 portfolio split between public and private investments. A defining characteristic of Fairfax India that we are not limited to public markets. Nearly 70% of our estimates are in private companies. That flexibility lets us back businesses with the most attractive long-term compounding attributes, whether listed or not. While we while private, we value them very conservative, and we're going to go over that. So much of the portfolio is carried below where public markets might value it today. We'll give some examples later on. Here, we illustrate how Fairfax India's portfolio positioning is different than the benchmarks. So we compare against the BSC 500, again, the 500 largest companies in India. If you were to buy an ETF, most likely based off the BSC 500 or the MSCI India, the weighting would be like the gray bars. This is where Fairfax India is quite different from the benchmarks. We're not trying to look like an index where over half the -- your investment would be in companies over $25 billion in market cap. The benchmark has very little in companies under $4 billion. Fairfax India's largest company has a value under $4 billion. So we are allocating capital to businesses and sectors where we think the long-term payoff is very attractive. We're very different than the benchmarks and intentionally so. Now these are the -- these are 2 IPO charts. The left is the number of IPOs in India in recent years, and the right is the amount raised. This is important for our product holdings. India's cap markets continue to deepen, and the IPO market was very active last year. In 2025, there were 367 IPOs, raising nearly $23 billion. India represented nearly 30% of all global IPOs. That gives us confidence over time, there will be multiple paths to value realization for our private companies, not just through ongoing compounding, but also through much more developed market for listings, spin-offs and exits. Now this table compressed India to major emerging markets on metrics such as listed company depth and market characteristics. This is a feature we value because it shows the breadth of opportunity. Among emerging markets, India is unusual in both company size and future prospects. It also stands out for a sheer number of listed companies and the economy's consumption-driven nature. Korea and Taiwan, despite much smaller populations are more developed to markets. The average person makes a lot more of them. And they have a higher percentage of listed companies with market caps above $250 million. That is what happens when companies -- when economies develop. With a large population, the probability also rises that a higher percentage of public companies will exceed $250 million as India develops. For example, China not shown here, has nearly 80% of its companies, public companies with above the $250 million market cap threshold. India could move in that direction. In 20 years, perhaps 5,000 in companies could have market caps above $250 million, up from 1,140 today. That would increase the odds that some of our FairFax India smaller businesses grow larger, while giving us far broader hunting ground than many other emerging markets could offer. Here, we show emerging market funds allocations to India from 2023 to 2026. Over half the money invested and sometimes up to 80% of the money invested in India by foreign institutional investors comes from emerging market funds. And despite India's strength, many emerging market funds remain underweight India and in fact, they've reduced their weight in India. We find -- we think this is notable. We believe investors are valuating emerging markets, primarily to diversify away from the U.S. and its AI dominated themes. Given India's size today, we believe it should account to close to 20% of emerging market portfolios over double what these emerging market funds have invested today. This chart shows where the average emerging market fund has 40% of their investments. Most emerging market funds have leaned heavily into AI linked stocks, and we understand why. The enthusiasm is real. And many argue, India offers little direct AI exposure. Investors want diversification, but investment managers want AI. Our approach has not changed. We want good businesses at sensible prices that can compound value over a long period of time. Nearly all of our businesses should benefit over time from AI-driven efficiencies much like businesses benefited from the Internet-driven collapse in communication and data costs more than 20 years ago. Like any portfolio, we have risks, but not ones tied to who wins the AI gold rush. Here's a summary of Fairfax Financial, our parent and its investments in India. Some shareholders have told me they don't need to invest in Fairfax India because they already own Fairfax Financial. So here, we just softly demonstrate if you want more exposure to India, you need more Fairfax India. Fairfax Financial mandated $7.3 billion of Indian investments, an impressive commitment, but of that $0.3 billion is Fairfax Financial's share. Roughly 5% of its investment portfolio is linked to India. If you believe in India, the most efficient way to express that conviction in public markets is through Fairfax India. Fairfax India gives you 100%. Enough said. Okay. Now let's turn back to the indices within India. Here is a comparison of Fairfax India versus the small and mid-cap indices, focused on growth and valuation. We think Fairfax India a hardline combination, higher growth at more reasonable valuations, supported by India leading the world among major countries in GDP growth. Our PE is 66% below mid-cap index and 33% below the small-cap index. On revenue growth and profitability, we far outperform the index on a 6 year -- we far outperformed on a 6-year compound annual growth rate, CAGR. Taken together, those valuation and growth characteristics is a much lower risk profile than the index. We are better positioned because our team assesses each company's underlying economics and the quality of the management teams we back. The indices have lower growth and profitability profiles because they include all the poor performing businesses in the index we set out to avoid I thought I'd touch on tariffs. This is the U.S. tariff time line on India. Now you may have heard last year that some Americans consider the most beautiful word in the English language tariff. The U.S. announced 25% tariffs on India on April 2, 2025, and then they announced they raise them to 50% on August 6, 2025, my birthday, so happy birthday. And then on February 6, 2026, they announced the tariffs would be reduced to 18%. So yes, there is some near-term noise and uncertainty. And that fits the U.S. President's pattern of creating chaos to try to end up with something better than the U.S. had before. Even so, India's economic fundamentals remain strong, very small deficits, low debt to GDP, high economic growth, low inflation, high currency, high foreign currency reserves, well, foreign currency reserves at good levels. But more importantly, for our portfolio, just 3% of all revenue from our companies is exported from India to the U.S., only 3% versus roughly 25% for the PSC 500. Most of our business's revenue is focused on domestic consumption, the India story, again, very different from the benchmark index. Also, the U.S. tariffs brought India closer to many countries, including Canada and China, Prime Minister Modi went there for the first time in 7 years, and India signed an important trade deal with the EU. As John Templeton said, [indiscernible] is an opportunity. $2 billion in bio. Infrastructure assets, well located, well managed, can combine durability pricing power and very long runways for growth. That brings us naturally to bile, which remains our single largest investment. The city of Bengalaru or Bangalore, has one of the highest capital incomes in India where [indiscernible] airport is located. It is a Silicon Valley of India, home to more than 40% of the 126 unicorns in India. India actually ranks the third largest for unicorns in the world. This slide is a table comparing major global airports. And the highest trafficked global airports in the world. And I'll keep showing this because we'll be on this list soon. BIAL currently serves 44 million passengers annually. That's more than Munich, and we're nearly where Toronto's Pearson Airport processes per year. BIAL anticipates growth to 80 million by 2029 and reach 100 million by 2040. We're nearly a top airport to be a top 5 airport, and that's only 3 to 4 years away. Now here's the table showing recent airport transactions. So BIAL has tremendous potential and has already been executing. It's scaled, high quality, it's a high-quality platform, not a concept asset located in one of India's fastest-growing cities with increasing air traffic and growing international connectivity, meaning high-margin business. Its long-term economics are driven not only by passenger growth, but by non-aero spend, real estate development and broader surrounding real estate opportunity. When we compare BAIL to recent global airport transactions, it also appears to offer compelling value. At roughly 10x EBITDA. The implied enterprise value is about $3.8 billion, well below the average of 21x. We're at 10x. The average transaction in the last few years has been 21x for comparable airport assets in recent years. Now no 2 airport are identical, but the comparison is still instructive. Assets of this quality have generally changed hands at much higher valuations. Now the pie chart below shows the second largest exposure for our portfolio being financial services at 29%. Between infrastructure and the financial sector, it covers 84% of our portfolio. So explaining some characteristics of this sector is very important. The 3 largest holdings of the portfolio is CSB Bank, private sector bank that also does a lot of retail and small business lending. IFL Finance. It's a diversified nonbanking lender. And then IFL Capital Services, which is a full-service cattle market for. Gopal will expand on these companies and metrics for banking in his section. What I'll delve into is why financials are so active for investment at this moment in time and especially after the last 11 years of progress. So this table is from 2015 when we began Fairfax India to 2025. So why financials are so exciting is because you have rising incomes, but financial inclusion has expanded dramatically for 1.5 billion people. We've mentioned in the past bank accounts in prior years of growth, but the number of borrowers with loans have tripled in the last 11 years. [indiscernible] accounts, which is the equivalent of investment counts have surged from $23 million to $216 million and could reach $300 million by just 2030. Underpinning all of this explosion is Internet access because without affordable data and mobile access, this scale of financial inclusion simply would have not happened. Another comment I've heard on India was that only the ultrawealthy are participating in India's growth. So I wanted to show some progress that's been made. Since liberalization in 1991 when India started to open its economy, the top 3 cities, Mumbai, Delhi and Kolkata held 56% of bank deposits. Today, the top 3 states, so the last chart was a top 3 cities. Now we're showing the top 3 states, and the bank deposits have dropped to 39%, and Calcutta state doesn't make the top 5. And in 1991, those cities only represented 4% of the population, but they had 56% of the bank accounts. Today, the top 3 states represent 27% of the population, yet it reduced 39% of deposits. Financial inclusion is growing. Obviously, not perfect, but vastly improving. Here, we shows 1991 again because it's when India opened its economy. In just 30 years and largely over the last 11 years, since Prime Minister Modi, the defining challenges that held India back have been largely solved or are well on their way to being eradicated. What is striking is that these were not production problems. They were distribution problems, getting electricity, clean water, health care and financial access to 1.5 billion people is a governance challenge of extraordinary complexity. This government tackled it head on. This is solving Maslow's hierarchy of needs for individual in India. When basic needs are met, human energy shifts from survival to opportunity, a farmer with electricity, bank account and health care is not just better off. He is now a productive participating member of the economy. And remember today, over 40% of India's population depend on agriculture for income. Now India didn't just expand infrastructure, it built the equivalent of entire developed nation in a decade. The incremental additional loan since 2015 is the total footprint of Japan, a France or Germany depending on the metric. This is the critical link to financials. Physical infrastructure is the delivery mechanism for financial services. A new road connects a rural merchant to a supply chain and to working capital loan. A new airport unlocks banking, insurance and investment products that follow. As India's middle class grows by roughly $0.5 billion through 2025, the demand for mortgages, consumer credit, insurance and investment accounts will be unprecedented. This slide shows the loan market share shifts between public or government banks and private sector banks over the last 20 years. And it tells an important story. 20 years ago, private banks have less than 20% of the total loans in India. Today, that is nearly double to 40%, a steady gain taken directly from public sector banks. We believe this trend has significant room to run taking more share from government run bank. The reason is structural. Public sector banks are constrained by government ownership in hiring, incentives and innovation. Private banks attract better talent deploy better technology and are relentlessly focused on returns. The incentive gap does not close, it compounds. Our financial holdings, CSB Bank, among them, are well positioned to continue taking share for years to come. the tailwind is structural. The opportunity is large. One of the best ways to participate in a fast-growing economy is through real estate and banking. However, Real estate is difficult assess at scale and in a diversified way. All your money might be tied up in a couple of buildings as an example. Banking is different. They touch in every sector of the economy simultaneously and profits from whichever sector needs capital to grow. The chart -- this chart makes the case. Since inception, the NSC Nifty Financial Services Index has compounded at 17.3% and over 22 years, accumulative 3,200%. The BSC 500 outperformed the S&P 500 and returned 14% in local currency. That 3.3 annual performance gap sounds modest, but compounding over 22 years, it produces nearly double the cumulative return. That is the math of compounding. And it's why this financial sector is our second largest. Okay. Last section. This is the discount. And here we show book value per [indiscernible] since inception versus [indiscernible]. The number that matters most is book value per share. The true measure of lasting value creation. Since IPO, book value per share, excluding buybacks, has compounded at 7.3% [indiscernible] 6.6 for the [indiscernible] with much of the portfolio privately held and conservatively valued, the true gap may be even wider. Now we add buybacks. Book value per share, including buybacks, compound at 6.6%, adding 65 basis points per year. earned by repurchasing shares below intrinsic value. Since inception, we have bought back nearly 23 million shares for nearly $300 million low book value. As Buffett notes, you reduced the share count at [indiscernible] price, and the remaining shareholder owns a larger piece of a more valuable business. Together, buybacks and business and business growth has added 130 sister annually translating to, well, 130 basis points annually outperforming the Sensex and that translates to 28 percentage points of cumulative outperformance over that Sensex. If projected forward another 9 years at the same rates, that gap could exceed 100% [indiscernible] differences in impounding long enough to produce extraordinary results. Of course, we aim to achieve even higher results. Now here's the some of the parts slide that we showed last year, and we updated this, and we have described this as a discount on a discount, and I think that remains the way to think about it. BAIL is held at a conservative valuation and is worth 93% of the market value of Fairfax India. You're getting all of the other investments as sleeper free, including all of our financial service investments. As always, you should make your assumptions. But our view is that the current market price does not fully reflect the long-term value of the collection of businesses we own. So just in conclusion, 4 points India is the country -- the India, the country is a rare large-scale compounding environment. Fairfax India is a unique vehicle to grow in that environment. There's 2 major themes that we have infrastructure and financials, that's 84% of the portfolio, and we trade at a large discount. So now our CEO, Gopal, will take you through Fairfax India in more detail. So over to you, Gopal. Thank you.

Thank you, Ben. Thank you, Ben. Good morning to all of you. I intend to summarize Fairfax India's 2025 performance and the 5 largest investments in our portfolio. It has been over 11 years since Fairfax India began its journey and our core views have stayed the same. Our founder Prem Watsa has emphasized this aspect at every AGM. To quote him, we believe deeply in decentralization that it helps drive organic growth, you would see that culture that drives our growth ads as a moat that gives an gives us an edge. You'll find them well amplified in the book, the Fairfax way released last November. The profound influence of these core values, decentralization, trust and transparency has influenced the entire leadership of Fairfax India and our industry companies. And many of the leaders of our industry companies are here with us today. This value system permeates our approach in Fairfax India and the invested companies. In our communication to you, we outlined India's resilience as a country and its economy under the current global conditions, notwithstanding the short-term underperformance of Indian equities for [indiscernible] it is always about the long term [indiscernible] and maintained a disciplined approach to business with strong financial conditions. Here is a summary of our investments. [indiscernible] to India's nominal GDP growth stay actually. And by valuations, as Ben had already shown in one of the slides, and you can see here as well, the valuation they have better than the benchmarks for Indian equities. Specifically, 7 of them by over 20% and 2 grew by over 15% CAGR. If they continue to grow in 15% to 20% range, is company's revenue will double every 3 to 5 years, depending on their respective growth. Two of our industry companies are under turnaround, as we always said, and I'm happy to report NCML turned around already and we divested Sanmar very recently after the December closing. We didn't want to commit more capital to keep invested in it. We needed to prioritize what is in the best interest of Fairfax India shareholders. And [indiscernible] is expected to emerge from a temporary down cycle while remaining a very healthy balance sheet, and the company also did recently buyback. Fairfax India's existing investments have generated a 10.4% return since inception, while public companies have returned 18.5% and private companies have returned 7.5%. The monetized investments have generated even better returns. The investment exits are driven by our fundamental assessment of the situation as we did in the case of National Stock Exchange and more recently, [indiscernible] or it could be due to regulatory compliance as we did in the case of CSB Bank last year. And sometimes, the founders want to champion, they actually request, so we did in the case of [indiscernible] are sometimes to create additional liquidity in the market, so that we improve the investor traction revered in the case of Falcon a few years back. Cumulatively, we have realized gains of over $900 million and with dividend interest included over $1 billion to date. While we don't like our shares trading at a discount to its intrinsic value, we have been buying back shafts, adding value to the continuing shareholders in the process. During 2025, we bought 600,000 shares for $10.4 million. Since our inception, we have bought back 23.2 million shares representing almost 15% of the total shares issued for $304 million at an average price of 1.09 been elucidated in 1 of his slides, how the buyback has been so accretive to the book value per share. And I would add that it has also compensated for the dilutive impact of issuing 8.2 million shares to settle the first 2 performance fees. And yes, there has been no accrual of performance fees in 2025. The total fees incurred to date, including the performance fees as a percentage of average cash and investments amount to 1.8% per annum. Fairfax incurs all expenses of Fairfax India and it's -- we feel it's fair and reasonable. [indiscernible] has grown from 9.50 to 22.94, while investments per share has grown from 9.35 to 30.14 over the past 11 years. Currently, the net worth is $3.1 billion with over $4 billion in total cash and investments and 134 million shares outstanding. Fairfax India is well positioned with $1.3 billion in cash and public securities against a total borrowing of 500 million senior notes with a leverage ratio of only 16% over common equity and also supported with a revolving credit line of $220 million. Now let me move on to our 5 largest investments. In addition to the overview covered in this presentation, our leaders are here present today, and we will have the opportunity to hear the [indiscernible] compelling long-term investment opportunity in India is rapidly expanding [Audio Gap] this growth station large aircraft orders by Indian carriers over 1,800 in number, which is supporting the expansion of aircraft aircraft in operation from the current aourn 850 to 1,400 by 2030. And [indiscernible] of our total investments. Under the exceptional leadership of Haimara, Managing Director and CEO, Vilas established itself as an airport synonymous with quality superior customer service, technology and innovation. It is evidenced by the numerous awards that they have won both nationally and at a global stage. Since Fairfax India's initial investment bias demonstrated consistent operational excellence, disciplined capital allocation and strong governance. For more information, I would suggest listening to the podcast featuring Hari Marar. It can be accessed on the Fairfax India's website. In 2025, BAIL handled 43.8 million passengers, a 7.6% increase over the previous year. Significantly, the international traffic grew by RECONNECT 8.7%, the highest among major Indian airports. High-yielding international passengers now contributes with a clear focus on further improving this number over time. Last year, we shared the news that 2 domestic -- 2 leading domestic airlines, Air India and Indigo forged a transformative partnership with Bio to position Bengaluru as the premier aviation hub. IndiGo, the largest domestic airline has already demonstrated this with the introduction of new destinations connecting India to many locations in Asia, and elsewhere for the first time. We also shared with you that both these airlines are setting up large MRO facility at Bangalore. BAIL cargo operations also hit an all-time high. In particular, 26% of India's total perishable exports passed through the airport, making it the #1 airport for such cargo movement. Bile is becoming a logistics hub for the Southern India. On the financial front, Bill delivered outstanding results in percentage terms, Biles revenue increased by 26% lower year-over-year. Aero revenue increased by 39%, while non-aero revenue and other operating income increased by 54%. EBITDA increased by 29% over the previous year to $374 million and profit after tax of around $108 million increased by 119% over the previous year. BAIL's valuation is primarily driven by 3 revenue streams. Aeronautical revenue, non-aeronautical revenue and the monetization of approximately 460 acres of land available adjacent to the airport, which is earmarked for real estate development. The aeronautical revenue is govern by regulated aeronautical tariffs determined by the airport economic regulatory authority AERA. These tariffs are set for a fixed period of 5 years under trying to oil to earn return on equity of approximately 15.05%, and it's -- on its approved regulators base. The fourth control period, CP4 comments on first April 2026. Bill's management has submitted its business plan for including the detailed capital expenditure program to be implemented over the CPI period. We expect to receive AERA's approval in a timely manner, supported by BAIL impeccable track record of on-time project delivery and execution within sanctioned budgets. BAIL currently has the capacity to 150 million passengers, BAIL growth plans will increase its capacity from 50 million to 80 million by 2029 to over 90 million passengers by 2033, have a significant impact on valuation. This will be achieved by adding a Phase II expansion to Terminal 2, ongoing refurbishment of Terminal 1 and drilling a new for terminal. The total cost is approximately $2.5 billion to be funded internally generated funds and debt. BAIL currently, they are -- the only ARPU to receive the strong domestic credit rating of AAA, which we reported last year, which has enabled it to refinance the entire project loan for the Phase 1 of T2 bond issuance during the year. In the process, we saved 120 basis points of interest per annum. Non-aeronautical revenue is a key strength for Ban growing 38% in 2025 to USD 295 million, driven by innovative retail concepts, digital initiatives and loyalty programs, non-aero spent per passenger reached USD 14.8 in 2025. Whilst hospitality from 080 lounge, is global benchmark and was awarded the best launch of the year, both regional and [indiscernible] 2025. On the real estate front, significant progress has been made. We have shared with you the various initiatives [indiscernible] during the year, including approximately 94 acres of incremental development totaling in all around 128 acres so far. This leaves approximately 335 acres for future -- available for future development, full with the upcoming show connected, which we expect to happened by end of 2026 or by early 2021. or city is capitalizing the growth of North angluru and generating immense value in the process. Bile is 1 of the world's sustainability pioneers in Aviation including reducing greenhouse gas emissions and achieving water positivity. The airport has been running on 100% renewable energy for a few years now. valuation of bile at $2.2 billion, implying an equity value of approximately $3 billion for the entire company. Excluding any cash flow from real estate monetization, this is 13.8x normalized free cash flow. Yet this valuation does not reflect the full intrinsic value. If 1 considers the near monopolistic characteristics of airport assets, and significant embedded value in the growth optionality that is available in BAIL and our conservative cash flow assumptions and the future monetization of real estate, which is not counted on the 13.8 million times multiple number. These factors provide a long runway for compounding value aligned with Fairfax's long-term investment philosophy. We are still awaiting approvals, complete bankers IPO, which has taken much longer than we had expected. We are excited about the prospects of BAIL on the potential of the aviation initially in India. Financial services. As Ben as said, financial services are a significant part of our investments. I will touch upon our 3 significant investments in the financial sector. Before that, I'll just give a quick update on the sectors. [indiscernible] Finance Inclusion Index stands at 67%, up from 43% in 2017. And only half of the account holders have ever made a digital payment and just 15% of them have ever accessed credit from the formal system either banks or NBFCs. Mortgage penetration is so low, only 11% of GDP compared to China and U.S. is far far lower. So pointing to a long-term growth headroom in the sector. And reflecting this global, reflecting this confidence in this opportunity, the banking and financial sector attracted the highest FDI inflows of any industry in 2025, including 7 landmark transactions totaling USD 12.6 billion. Coming off to cover quickly on the regulatory measures in 2023, '24, we have discussed with you in the past, we have also outlined in our letter -- are we aimed at moderating the consumer-oriented lending temporarily, which slowed the sector growth with bank credit and deposit growth moderating to 11%. And this contrasts with the sector's 24-year track record of compounding growth of over 14% in deposits and 16% in advances, which underscores the durability of the long-term growth trajectory. By September 2025, most of these measures were used by the Central Bank Reserve Bank of India, which has played a pivotal role shifting in 2025 to a more accommodative stance, with 125 basis points of policy rate cut, 100 basis point reduction in the cash introduction of expected credit loss framework by the system and RBI also announced its intention to allow the local banks -- Indian banks to participate in the acquisition financing, and RB has also been injecting durable long-term liquidity into the financial system. Therefore, improving the overall financial conditions. These moves actually signal a long term confidence and the stability the expansion of credit markets. India's banking system remains resilient with gross gross NPA of 2% and net NPA of 70 basis points and the provision coverage ratio stood [ at 80 ]. The bank is underleveraged with a potential for better profitability in the future on digital platforms. Laying the groundwork for scale under the bank's 2030 framework called a sustained build and scale. We believe CSB is now in the scaling phase and is on track to become full service modern private sector bank. We are very excited about CSB's long-term prospects. IFL Finance. IFL Finance has grown into one of India's most diversified NBFC with an AUM of $10 billion, a 5-year CAGR of 18% and serves more than 4 million customers across India. Let me briefly touch upon the NBFC sector's performance. NVSsector continues to play a key role in reaching the underserved segment of the society. credit extended by NBFCs are growing 14.6% of GDP and represents over 21% of India's overall credit market compared to 50% in the U.S., up from 12% in the prelim crisis year of 2007, '08. NBFCs have tried despite many challenges, such as the ILFS crisis, the pandemic on the regulatory impediments that we discussed some time back and growing from $347 billion in 2018, '19 to $586 billion by September of 2025. The fiscal year ending March 2023, NBFC secrete growth was over 19% compared to just 11% for the banking system. Under the Steward [indiscernible] and his long-term partner [indiscernible] who is with us today, the IFL Group has evolved into a leading district financial conglomerate. We own 15.2% of the company valued at $438 million. IFL Finance has consistently grown the years, largely driven by organic growth to emerge as a significant player across its key segments gold loans, housing finance, small business finance and microfinance. IFLS successfully regained its market share in the gold loan following the link of RBI ban in September 2024. The gold loan market is estimated to be $49 billion in India with NBFCs accounting for 50% of the gold loans market. IFL currently holds a 13.2% share of the NBFC gold loan market recovering from 6.2% in summer of 2024 after peaking at 15% prior to the RBI action. This is -- this accomplishment is despite intense competition from banks and new entrants. The company continues to scale its balance sheet through co-lending and asset assignment, primarily with banks, which now represents approximately 35% of their AUM. 2025 marked a year of strategic recalibration for IFL across their portfolios of MSMEs, microfinance, housing finance, alongside the rebuilding of the gold loan franchise. GAM grew by 38% year-on-year with gold loans accounting for 44%, housing, 32% and microfinance, 9% of the portfolio. revenue increased 8%, while net income rose 91%, but resulting in an ROE of only 10%. The lower ROE actually reflects a onetime increase in provisioning on investments a larger equity base post rights issue, which we did just soon after the RBI bank and higher capital levels at IFL Home Finance of around following the 2022 capital infusion. Asset quality remains stronger than the industry average with gross NPAs at 1.6%, down from 2.4% in the prior year, and net NPAs at 80 basis points. Credit costs were elevated in certain segments, particularly micro finance and unsecured small business lending, reflecting the broader macro and industry-wide trends rather than company-specific stress. Provisioning remains conservative with a provision coverage ratio of 92% of December 2025, and rating standards are prudent with loan-to-value ratio of 71% for home loans and only 61% for gold loans, while they are allowed to finance up to 90% and 47% for secured business loans. The portfolio is very well diversified with 98% of our assets and retail robust capitalization and net interest margin of 7.5%. So this balance sheet strength positions I have well to capitalize on the opportunities across NBFC sector in India. Now moving on to IIFL Capital. IFL Capital is a leading capital market player, offering full service capabilities across brokerage, investment banking, wealth management and financial product distribution. [indiscernible] is supported by a strong research franchise covering over 280 companies serving over 1,000 institutional clients and broad retail base of over 3 million clients. As Ben outlined, India's capital markets have deepened significantly over the past decade, driven by strong domestic investor participation. More than 190 million credit accounts have added well active NSE clients and equity cash market volumes have grown at approximately 26% and 18% CAGR, respectively. The derivatives segment has expanded particularly rapidly with volumes growing at about 85% of CAGR over the past 5 years, reflecting greater liquidity, sophistication and investor confidence. At the same time, domestic savings are increasingly flowing into financial markets, strengthening market depth and stability. Mutual fund accounts and AUM have grown at roughly 23% -- 22% CAGR, while monthly [indiscernible] inflows systematic investment plan inflows of USD 3 billion to $3.5 billion highlight rising investor discipline and provide a solid foundation for sustained growth. To enhance investor protection, SEBI, the Securities and Exchange Board of India, the market regulator, regulation tightened regulations around the retail participation and derivative tradings in late 2024, including the measures included higher margins, larger contract sizes limits on the weekly expiries across exchanges and uniform transaction charges. While this led to an immediate drop of 38% in drop in volumes, activity has since partially recovered, and it still remains, of course, 19% below the peak volume that we got in November of 2024. Despite near-term revenue volatility, these measures reinforce market resilience on the capital markets industry remains structurally positioned for a long-term growth, supported by rising participation, financialization of savings and strong domestic investor base. We won 27.2% of IFL capital in 2024, IFL Capital made our strategic entry into wealth management business, investing in senior leadership, new offices and technology platforms. This business, we expect is going to remain in an investment phase over the next 18 to 24 months. The addressable asset pool for high net worth and ultra high net worth clients is estimated around USD 1 trillion currently. Bernstein project India's serviceable wealth to grow from current USD 3 trillion to over $9 trillion by 2025 with a specialized wealth under management, expanding from USD 300 billion to $1.6 trillion, employing an 18% CAGR. Backed by a strong talent base, IIFL Capital is well positioned to capture its new share of the structurally expanding market. 2025 was another strong year for IFL Capital's institutional and investment banking franchise. The retail business accounting for 65% of total revenue was impacted by regulatory actions I just discussed some time along with planned investments in building the wealth management platform. As a result, overall revenue declined 7% and net income declined 25% during the year. As India's capital market continues to deepen, now ranking fifth globally by market capitalization IFL Capital remains one of the top 3 domestic players supported by brand equity and a loyal client base. We expect it to remain an attractive long-term investment benefiting from structural market growth and operating leverage as the recent investments in wealth management and others fructify. Seven Island shipping. Let me briefly introduce you Seven Island. Seven Island Shipping Limited is the second-largest private tanker shipping company in India and is based in Mumbai. It transports oil products oil products, crude and LPG along the Indian coast and in international waters holding a 25% market share. Seven Islands is a very good example of what can happen when Fairfax India finds an outstanding entrepreneur backs that person with long-term capital and allows management to keep building the business. It really exemplifies Fairfax India's investment philosophy. We are fortunate that Seven Island's management team has created a short video presentation that provides an excellent overview of the company and its growth rate. [Presentation]

[Audio Gap] private sector tanker shipping companies. The company's track record has been exceptional since 2019 investment of USD 84 million for 48.5% stake, Seven Islands has generated USD 388 million in free cash flow and FireFax India has received approximately USD 70 million in cumulative dividends. This has been a highly successful investment for us. Today, we carry seven islands at under 5x earnings and 4x free cash flow, and we believe its intrinsic value and compound meaningful over time as India continues to develop. Please join me in thanking Seven Island for excellent video. FairFax India has got investment in several other companies in manufacturing. We have 4 manufacturing companies, compressing of 8% of our portfolio run by excellent founders. We are proud to partner with Carfax India now has Facom organic, an earlier chemical company, Maxo engineering on aluminum die casting and machining company, GenX engineering and aluminum electrical post manufacturer and global aluminum manufacturer of extruded aluminum profiles and parts. These businesses have delivered strong, consistent growth with Falcon revenues compounding at 9% and those are the other businesses compounding 18% to 22% over the past 6 years, supported by disciplined capital allocation and strong balance sheets. Max up [indiscernible] Global Aluminum are well positioned in fast-growing aluminum end markets benefiting from both domestic demand and export growth. Maxop, in particular, is gaining from the global shift to lightweight materials in the automotive sector, serving both the passenger and commercial vehicle platforms. Common strengths across these companies include operational flexibility, their capability to manufacture complex, high precision components, areas to strict quality standards and the ability to build long-term relationship with global and Indian OEMs by participating early in the product design process. In financial services, you have 5Paisa Capital, the discount broker and a technology-based financial services company, part of the IFL Group, in logistics and storage, we are NCML and agriculture warehousing company that has been fully turned around under Sanjay Gupta's leadership. Our annual report provides more detailed information about each of these companies and many of the leaders are with us today. And before I conclude, I just wanted to take just 1 minute to comment on the current Middle East situation because many of you may be asking how we are positioned. However, Middle East is impacting our businesses. Before being so it is noteworthy for me to actually -- I just thought over it before coming here. contrasting today's environment with the golfer of 1991, which is 35 years ago. Back then India was facing a severe balance of payment crisis with limited foreign exchange reserves under heavily regulated stagnant economy. The country was forced to seek emergency funding from the IMF to avert the full-blown economic crisis. Today's situation, while clearly concerning, particularly given India's dependence on oil imports from the Middle East, the significant remittances from [indiscernible] in the region which account for nearly 40% of the total limited is approximately $50 billion is fundamentally different. India enters this period of geopolitical uncertainty from a position of considerable strength and resilience. Several factors. We are what emphasizing when his demonstrated fiscal and monetary discipline, India has got far more fiscal room for supporting the short-term problems. Substantial foreign exchange results of approximately $700 million, providing a meaningful external buffer, and continued economic growth of over 6% despite all the recent download revisions. And the latest IMO projection is 6.5%, strong domestic balance sheet and the banking sectors, the NPA at historical low levels. and the government, which is reform-oriented and that has already implemented significant structural economic reforms. Taken together, these factors give India a very high degree of macroeconomic ACM's that simply did not exist in earlier periods of global crisis. That said, the situation in Middle East does have real near-term implications for some of our invested companies. Our view is that the fundamentals of our invested companies are sound and the current period is a difficult transitional one but we are very confident that our companies will manage this period of global uncertainty with versatility and [indiscernible] supported by strong financials. With that, I'll turn the microphone back to Ben, and thank you all for [indiscernible]

Thank you. Thank you very much. Gopal. That was excellent. Okay. Let's open it up for questions now. [Operator Instructions] Jeff Stacey is over there. And will take online questions if you have any for him. [Operator Instructions] So why don't we start right there?

[indiscernible] from [indiscernible] Wealth Management from Infras Tennessee. The question when I was talking to one of the Bangalore airport executive, he mentioned, you have strategically talking about with the Air India. So the -- so you -- Air India is going to add direct flights from both U.S. and Canada as well as from Europe directly to Bangalore bypassing the airports like in Dubai Dhabi and Qatar. So the global citizens, mostly Indian Americans, they can directly apply to Bang, Bangalore and that's the strategy he mentioned, but for the past 3 years, we don't see any significant improvements, especially Air India is still acting as government entity rather than private still a lot of issues with their maintenance and all that. Could you please expand on that and how you are strategically are working with the Air India and making us a Bangalore as a major hub.

Well, that's an excellent question because 1 of the big ways for the airport to increase margins as these international flights that you're alluding to. So I think Harry has the best perspective on all the international routes that we're trying to get. So why don't we have Harry come up and speak. And we might have some new people in the room, so I'll just introduce him. Harry Merar is the CEO of Bio. But he began at ITC Hotels and moved to Jet Airways and then joined vial in 2006 and has rose to CEO in 2017. And now we're underway with a $2 billion expansion to take us from the $44 million to $80 million passengers by 2029. So Harry, why don't you come up and speak. And just one thing on that $80 million. I was just looking up Atlanta was the biggest airport in terms of passenger traffic. It took 21 years to go from 4 -- from $40 million to $80 million. Harry and his team plan to go from 41 -- $40 million to $80 million in 5 years, very ambitious. So quite amazing. And yes, please, on the India hub, but then maybe an update on the airport overall because I think that's going to come up.

Okay. Okay. Good. So can I give a quick update on the airport overall before I come to your question very specifically. I think the best way to describe the year that has just gone by is that, it was a year that we saw very exciting growth, but it was also peppered with some significant challenges. This is something that wasn't covered in what Gopal mentioned, since COVID, I think India, Indian civil aviation industry, specifically Bangalore Airport has seen a very aggressive period of growth. And this is a trajectory that we were continuing to expect over the next few years. This year, on the other hand, that has been a little muted because of 3 very important events that happened. One, of course, you would recall in June, we had a very unfortunate and tragic collapse a crash of the Air India flight. [Audio Gap] Second, of course, was the border conflict between India and Pakistan. And of course, the ongoing wars, Ukraine, Russia, the Israel Palestine. In all of these areas, there were periods of time when air space was closed and [indiscernible] remains closed, carriers have to fly around these air spaces, which means that it reduces their -- the economic feasibility of operating resulting in several cancellations and that also resulted in lowering demand a little bit. And last but not the least, I'm not sure how many of you follow Indian aviation story strongly, but we saw the operational meltdown of India's largest means that we're building the capacity that is required to cater to the kind of growth that's coming up in the next few years. Second part is airline partnerships. Indigo and Air India are 2 of the biggest and the most important carriers in India. We've got great partnerships with both of them. what you would recall us talking about was our partnership with Air India that was in the works, we announced it last year. We signed the agreement with Air India that said that we will News is that the other important thing for us to do was to make sure we tie these airlines down to Bangalore. And that's why we signed the agreements with them to establish their maintenance, repair and overall basis in Bangalore. So with both these airlines with Air India, we leased them 40 acres of land with Indigo, we leased the 36 acres of land. With that, both these airlines have committed to building the largest maintenance repair overall facility in the country in Bangalore. And between these 2, we'll have the capability of servicing 29 [indiscernible] equivalent aircraft at any given point of time, which not only makes Bangalore one of the largest MRO basis in India, but potentially one of the largest in Asia as well. So what this means is that these aircraft will now be based in Bangalore because that's where the maintenance base is which means the crew base will have to be established there, which means the training basis will have to be established there, and that would mean that more and more operations will have to happen out of Bangalore itself. This, I think, is a positive move that we made very early on. That, again, is not good enough because we also need to make sure that the processes work. So when we build Terminal 2, we did not connect Terminal 2 to Terminal 1 because traffic volumes at that point of time did not justify that connection. Now as we move from 4% transfer traffic to 17%. Group 2, as part of the expansion program. We've also keeps the customer who's transferring at the center of everything that we do, which means that with that program, we're able to focus on the customer experience and deliver an outstanding transfer experience to our customers. also working with our regulatory authorities at the same time to make sure the processes are simplified in terms of rescanning of bags or having to rescan people multiple times so that the whole experience is that much better. So with all these investments that we are making, we see that we're well placed to grab that opportunity. But hopefully, next year when I come here or the year after that, we'll have more good news to share.

Strategically, direct flights to India adds a lot of value. So that's what most of us wanted to see.

And sorry, one thing to just touch on. There's 1,800 planes on order. I think you touched on part of the problem with the delivery, but 1,800 planes order. There's only 800 planes in India today for travel. So the big constraint is getting though they're getting delivered every week, right, a plane is coming to [indiscernible].

This year onwards, the delivery starts. So every week, we'll see planes coming in. Initially, of course, remember that Delhi is the political capital to the country, Mumbai is, the commercial capital of the country. Bangalore is the third most important city. So initially, these planes will get deployed out of Delhi and Bombay, but I think the next set of deliveries will come to Bangalore. And I think we spoke about, if I may take a couple of more minutes, we spoke about the crisis, the Middle Eastern crisis or West station crisis, I think in there, there is a hidden opportunity for India. And I've said this many times over that India has quoted the opportunity to create hubs because India is geographically placed for the airlines in India capitalize on direct flights to Europe and to United States. We don't have to travel through the Middle East anymore because these hubs have been developed on the back of Indian travelers traveling to Europe and the United States. If you see a plane landing in Dubai, you'll see 80% of the people moving towards connections or transfers and only 20% going to pick up their bags. So really, if you can prevent that leakage happening, we have the potential to create great hubs in in India itself. And Bangalore is well positioned to do that. Thank you, Harry.

And I'm one of those people that fly through. Dubai to Mumbai.

I'm Harsha Gopinathan. I've been a Fairfax shareholder for 17 years and Fairfax India for 10 years. So I'm a true believer. I think the next 5 years for Fairfax India is going to be fantastic, driven by BAIL, but the worst-case scenario, I'm increasingly concerned about, especially with the recent Kennedy Wilson transaction by Fairfax and the cash building up in Fairfax is if the discount continues to persist, the -- is there a chance that Fairfax India could be -- the minority shareholders could be taken out for a small prem. Ben, I'd like to get your thoughts on this. I know these things are hard to predict. But even is this scenario possible? And how Fairfax India leadership can make sure that the minority shareholders continue to participate in this upside.

Question. Well, for one thing, the last time when we had the performance fee paid, we took cash, we didn't take shares. And so we were very careful not to be dilutive to the shareholders to protect that. I don't know, Gopal, if you have any other comments on that.

The other thing -- right now, there is no plan for us. I don't think we intend to take it private. I mean, I know there are quite a few other investors in one hour interaction, they brought up the same topic. I think we have time and again clarify that. That's not our intention.

Fairfax India, but...

When we brought Fairfax India, as a listed entity, I think it was brought with a very well later thought from a long-term perspective. Having a listed vehicle gives us an edge even for -- that's the reason why you ran an anchorage. We want anchorage to be listed. [Audio Gap] But if you think about the development, BAIL was a concept if you went back 5 years ago, and we're going to -- wanting to take it public, right? But now we have Terminal 2, where -- it's one of the most beautiful airports in the world, we think it's the most beautiful and the best travel experience and it's proof of concept, and it's really a profitable entity now. So if we are going to market today, it would be much better than it would have been 5 years ago. So it's actually been a blessing to have this delay of 5 years, if you think about it. And for you, the shareholder, what Buffett says, right, when you see something of compressed value, you can accumulate now you have to make your own decision. But there's the opportunity to accumulate something that appears to be a coiled spring in our view. But thank you for your question.

I shared the same view that it's a [indiscernible]

Should we go to Jeff?

Ben and Gopal. The first question here is about CSB Bank. CSB Bank is now halfway through its SBS sustained build scale 2030 plan, are you on schedule or ahead or behind schedule at this point?

So for CSP bank...

I think bank is on scary. I mean as they rightly mentioned 2030 framework. So right now, we just got into the scaling -- I mean, what we feel is the scaling phase. We just -- they just completed the IT, the core banking, new core bAnking system in place. And we have all the bandwidth in terms of manpower, human resources, investments all have happened. I think the bank is clearly positioned for growth. And of course, we have seen in the last 2 years, there was a pocket of kind of a slow growth in the sector as well that 1 has to keep in mind when you look at the bank. And you have seen already CSB growing far superior to what this industry growth has been against 11.1% growth in advances 1.3% growth in deposits, they have grown at 28% and 21%. So the bank is well positioned for generating growth.

Expects to be a midsized bank by 2030, right, from sort of the small bank category and has won multiple awards to last year, right?

And given its size we have seen it going back in history, if you've seen, I mean, [indiscernible], HDFC Bank, for example, over 25, 30 years, they have continued to grow at least 5 to 6 percentage points higher than the banking sector growth, which used to be also a 16%, 17% annual growth, best growth anywhere from 20% to 25% depending on the -- so similarly, if you see CSB, its size right now is also an advantage in terms of it is a fast-growing bank. And as I have already seen in this year against 11% growth of the industry, they have grown over 20%. So with the RBI's shift of stands in terms of accommodative credit policy and liquidity injection and accommodative stance, we feel the banking sector is coming back to the growth is coming back. We are already seeing the early signs of $0.11 is now 14%, the running number latest. And we feel the bank should, as Ben rightly mentioned, it will be a midsized bank. And if you want to [indiscernible] on the Board, if you want to add anything more on [indiscernible]

Do you have anything.

That's good.

Yes. Great. Let's go back to Mike one.

Congratulations on your 11th year and having increased book value per share by 9.4% in 2025. I have a 2-part question. You mentioned in your letter and you touched a little bit on this spend that you intend to complete an IPO of Anchorage and you're still in the process of obtaining regulatory approvals kindly, can you please share with us what your expectations are for crystallizing the value of Ball investment? And what you expect that will look like post IPO. And the second part of the question is, in 1 of your slides shared smartphone usage is about 1.2 or a little slightly over 1.2 billion users. And according to my calculations, that's more than 90% of the Indian population. Have you looked at opportunities to increase banking penetration through digital platforms and smartphones?

Well, the second part, I could go with first. I mean it is the most digitally advanced place for banking digitally. They've created a ADR, which is people are identified through their retina or their fingerprint. And so you can access your bank account, and they've created a unified payment interface. So you can scan a QR code even with a future phone, and it will deduct money from your bank account and go to the vendor. So if the vendor a local coffee seller, let's say, you scan it with your card code and it pays him automatically. And actually, what they found is people are willing to -- the local T seller is willing to pay the tax at GST instead of using cash because they can serve 2 or 3 coffees at a time. And going a little bit further into this. What's great about that is that now this T seller can go to a bank and prove his revenue stream on a monthly basis. And so now the bank can make a good informed decision on giving them a loan. So that has happened, and they've created all the people that were unbanked. I think I showed on the chart also, there was a -- I think it was 150 million or something bank accounts. You're going back 10 years ago now there's $500 million. So basically, everybody -- every household has a bank account. So that penetration has happened and that smartphone usage has enabled that to leapfrog much like land lines to a cell phone. On the IPO, we talked about that it is in the regulator's hands, and we await their decision on that. They haven't given us a final word. Maybe I don't know, Sumit, you've probably talk recently, so you could probably talk about 2025, the update on what you've heard back from the regulators on the process.

Sure. As I'm walking towards over Harry is giving me a big smile saying that, okay, you have to answer this difficult question. So here, here I am, again, with my same answer as last year. We are awaiting the approvals and we are doing everything that we can. And one additional thing I must say this year is we have Amit band. He spent 40 years building the regulations, and now he's helping us kind of navigating through these regulations. He's helping us immensely under his guidance, we are making good progress in going through the bureaucracy of getting that approval. As I mentioned last year, and explained the structure of Indian bureaucracy, the approval of Anchorage IPO has to come from a cabinet committee, which is chaired by Prime Minister of India, and bunch of senior ministers and a lot of ministries have to kind of give the recommendation. And amongst everything that is going on in that part of the world, all the wars and the internal crisis and all sorts of things., [indiscernible] IPO is extremely low priority for any bureaucrat kind of working on this particular file to kind of go up to this particular committee and stick their head out to say that, okay, there's this commercial entity, which needs to go public, and we need to allocate time to this. But under Amitabh's guidance, we are kind of doing well hopefully, again, it's been 3, 4 years, I'm giving you time lines. I don't want to give you time lines now this time, but yes, we should get the approval soon and you will see the value coming out of Bangalore port. But in the meantime, Harry is doing a terrific job. On the ground, as you heard all the numbers. This year, Harry, you did a cash flow of about $300 million. and $350 million, and that cash is all accumulating within bill. We need a way to kind of work with Harry to take it out in the IPO process and distribute to everybody.

And like we mentioned before, over the last 5 years, it's gone from concept to a real asset. And in 5 years from now, well on its way to $80 million is the projection. So it might be much more profitable asset when it hits market. There someone standing in line [indiscernible].

My question goes more for the Bangalore airport. I'm very curious how you guys think about the revenue opportunity broken down between regulated nonregulated specifically? What is the opportunity there? What is the lease churn for concessions, et cetera. And then the valuation, if the valuation is below market, what is the reason? So is that these 3 legs, appreciate it.

So I'll have Harry talk on the regulated versus nonregulated. Valuation. We value it at a 13.8x free cash flow in our model. And it's we use free cash flow to -- as a way to for all our companies on valuation and try to be conservatively valued. The transactions, though, in the public markets are based on EBITDA right? So no CapEx spending is included and all that. So that's why we showed EBITDA in the slides because that's the way to compare it to the related recent transactions. So that's how we value it. Harry, do you want to go on?

So revenue at an airport falls into 2 large buckets, regulated aeronautical revenues, the unregulated non-aeronautical revenues to large buckets. So our aim is an airport is to constantly grow the non-aeronautical revenue stream. The large buckets that fall under the stream are duty-free revenues, retail, food and beverage, there's advertising revenue and parking and taxi concessions. These are the large numbers. So what we've done, we've sort of had a clear plan in place to continuously grow our aeronautical footprint. So on 1 side, what we have done is maximize the footprint in the terminals. Now as we're expanding terminal to Phase II, we'll be adding another 12,000 square meters of retail and food and beverage space. But what we're also doing because Bangalore Airport has done a successful experiment with some retail and food and beverage formats just outside the terminal in the forecourt area, which has turned out to be very successful, which means that people are traveling from the city even if they're not traveling to the -- traveling on a flight, but just coming to the airport experience environment that we've created. So this has been a successful experiment and as a result of which we're now creating a retail dining, entertainment village in our airport city, plus the Terminal 1 and Terminal 24 courts. We're developing them into really exciting vibrant spaces with areas for concerts, retail and food and beverage, a lot of bars. So it's turning out to be a very vibrant space. And this -- between this year and the next year, we'll be adding another 60,000 square meters of retail lining entertainment space as well. So continuously expanding our retail dining footprint, which means our non-aeronautical revenues will grow inorganically, not just the organic growth that comes from passenger traffic, but inorganically as well. To that, we're also expanding our service offering. So for example, we are enjoying our hospitality business. We think we do that well. So currently, we operate lounges, muteness services, transit hotel and so on and so forth. But now as we go forward, we think that there are opportunities to launch our own restaurants and cafes. So this year, we'll be launching our own brands of restaurants and cafes under our 080 flagship brand. And also getting into -- as we build out our business box in the airport city, we're going to operate our own brand of co-working spaces, very much like WeWork, but our own brand of co-working spaces as well. So all of that is going to add to our aeronautical footprint growing that significantly at a faster pace than the aeronautical revenues. However, always remember that aeronautical revenues are determined on the basis of the investments that we make in the aeronautical space. So we're in high investment phase right now. We're investing $2 billion in the next 4 years. As this gets capitalized, that gets added to the regulatory asset base. And therefore, when tariff is determined, tariff will always remain at that slightly elevated level multiplied by the high growth of passengers that we are having. The percentage between aeronautical and non-aeronautical revenue may not, therefore, change that much in the immediate future. But as we move let's say, 5 -- for the first 5 years, it will remain in the same region, but between 5 in the next 15 years, you will see that as we depreciate our regulated asset base, we will see that the nonaeronautical revenues will move from currently 35% to 50% and probably even higher over a period of time. I hope that answers your question.

Jeff, why don't we go over to you, mic 3?

A question on foreign investment in India. The level of new foreign investment in India softened somewhat over the last few years is government policy in India doing enough to unlock India's full potential.

Great. That's actually a great question for Amitabh Kent, who we have here with us. He has 45 years at the highest levels of the Indian government, and was an ISA officer. His batch here was 1980, and he launched Make in India, Startup India, an incredible India. And he was the CIO of NITI from 2016 to '22 and India's G20 [indiscernible] in 2023, and he's been a senior adviser to us. We're fortunate to have him. He's also the key leader for Fairfax's initiative of the free enterprise center. So Amitabh, it'd be interesting to hear on government policy, what they're doing to unlock India's full potential, what Jeff just asked. Yes.

Thank you. So let me put this in a perspective that India is the fastest-growing large economy in the world. The IMF estimates have just come out yesterday and it shows that India will continue to be the fastest-growing large economy at growth of higher than 6.5% despite global turbulence and turmoil. India is today a $4 trillion economy, but the Prime Minister said the vision that by the time it becomes 100 in 2047, it should be a $30-plus trillion economy. So the aim is to take it's GDP by about 9x higher. And what India has done is that in the last 7 or 8 years is carried out major structural reforms in the Indian economy. It's brought in on tax across the economy, which is goods and services tacked, is brought in IBC, the insolvency bankruptcy code. It's lowered the corporate tax. It's focused heavily on ease of doing business, and I devolve on that. It's scrapped about 2,000 laws. It's scrapped a number of rules procedures. But the most important thing that's happened in India is the digitization of India. It's 1.5 billion people have a digital identity called -- and between 2015 to 2017, India opened up 50 million bank accounts. Every second bank account opened in the world was opened in India. And at that point of time, only 18% of the women at bank accounts today, 91% of the women have bank accounts. All these bank accounts were then seeded with the digital identity and the mobile number and that enabled India to do fast payments on the mobile. So everybody in India does fast payments on mobile, 50% of the fast payments in the world happened on mobile. But India does credit India does stock market transactions. India does insurance all on the mobile within 30 seconds to 1 minute from anywhere in the world. This does not happen anywhere else in the world. So the bank of international settlement said that India has achieved in 7 years. what it would have taken India 50 years to achieve in making a digital leapfrogging of India. The third thing that India has done is it's focused heavily on capital expenditure on its -- the CapEx spend on infrastructure has gone up enormously from less than 1% to 4.5%. India, in the last 8 years is built for its citizens about 45 million houses. 45 million houses means that it's built more than in Australia within India. It's provided electricity connection to more than 130 million citizens of India which is more than the population of Germany. It has provided 253 million citizens water supply connection, which is more than the population of Brazil. But more important is built roads, expressways, highways, has taken them from about 88,000 kilometers to about 146,000 kilometers and build an enormous number of airports. So this infrastructure has been the key driver of growth. But the most important thing about India is that -- the average age of India is 29. It's demographically a very young country. The rest of the world is aging. The rest of the world is all aging. Japan is raised. America is aging. Canada is aging. Japan is -- or the rest of the -- even China is aging. But even when India is 100 in 2047, it will be -- the average age will just be 35 when it will be a $30-plus trillion economy. So my view is that this is not merely India's ticket. It's going to be India century because of demography because it's the only country which is building 30 kilometers of roads and 12 kilometers of railway lines every single day is the only country which is doing about metros every year is the only country which does 50% of its transactions on mobile, all payments, all on mobile through QR codes. And it's the only country which has increased its solar energy 32 times in the last 6 years. No other country has been able to do this. So this is going to be India's ticket.

Thank you, Amitabh. I would add not just in foreign inflows into equity markets, right? If you look at like Microsoft or Google or Amazon, they've committed almost $70 billion to India to invest. Amazon alone, Amazon loves India, $35 billion. They're committing to -- if you look at semiconductor investment now, India has made that in their budget as a priority. $18 billion has been invested into the country. Prime Minister Modi goes himself to open every plant to show what a priority semiconductor investment is. And then in terms of foreign inflows into markets, India created this systematic investment plan, SiP account, and that's grown dramatically. That's why the DMAT accounts that I was showing you from $23 million to over $200 million now have grown. 2022, when the Fed was tightening, and every -- and inflation took off in markets around the world were losing, even the bond market was losing equities and bonds lost in the same year. India was only down single percent. And that was because all this domestic money was flowing into the markets. And so I think when we look back in history, that will be the year that India took control of their markets away from the foreign investor. Prior to that, foreign investor would come in and out of market and destroy India's market if America sneeze, India would be in the hospital from that type of event, not anymore. And so that's that's a big difference. So India is no longer dependent on the foreign investors, nice to have it. And I think a lot of -- if you look at Apple, Apple is making that a priority to India as well. Thank you very much. We are on mic 1.

My name is [indiscernible], and I'm from Toronto. My question is, it seems like there's a significant amount of dividend capacity increasing in the holdings at Fairfax India as the portfolio has matured. Obviously, the biggest portion of that is the airport. And I'm curious, as the dividend start to come from these entities, or first of all, like do you have an estimate of what they might be in a few years, if that's possible to give? I understand if it's not -- but where would that capital be used? And is there a potential to increase the leverage at the holdco even more given the asset base has grown for when the debt was first taken on?

Depends on CapEx needs of the companies, but you could see increased dividend capacity. I don't think we can give an estimate at the time. Harry, I don't know if you want to talk about why you're not paying us a dividend. No. But he's trying to expand to 80 million passengers in the next 5 years. And so there's $2 billion in commitments to get there and then also take it to $100 million. So there's another, I think, $600 million for that expansion. So -- but we take it into consideration, even Islands is a great example of paying big dividends for us, and they're very careful of how they buy ships and when they sell ships. And so I don't know if you have anything to add on. No, you're good. Okay.

I mean you will get to hear from us at the right time. I mean I mean it's in progress. I mean just balancing the CapEx. And obviously, I mean, I think it's a no-brainer, you would get some dividend flows from the airport, but we don't want to be committing to any time on what amount right now because our priority is to make sure that its capacity from $50 million to $80 million and all of that happens another adjacent things. And also on the real estate, we felt there are certain projects earlier would have been outsourced to third-party [indiscernible]. I think certain projects are far more profitable if we internally do. So we want to have kind of flexibility with cash flows. But the dialogue between us and management, of course, there are enough pressure on to pay dividend.

Well, we'll get to hear more.

We like dividends, but India is growing so fast, right? They have a lot of opportunities to invest and grow their operations.

Well, I was seeing at the holding company, it seems -- I think there's a perception amongst investors and perhaps you can dispel it that the holding company is capital starved because we can't raise new capital because our cost of capital is too high. And so is there an opportunity to take dividends or reinvest or to add leverage to [indiscernible]

If we ever need more capital, I don't think it's a problem to get more capital for us.

Can I guess the question is how that capital gets in, when the equity is very cheap versus intrinsic value?

There is -- you don't always have to do it through equity issuance anyways, but I'll leave it at that.

My name is Gopinath. I'm coming from outside of Washington, D.C., a long-term Fairfax India shareholder. I have a 2-part question, 2 different ones. The first one is regarding -- let's talk about subjects Sanmar Chemical investments. the disclosures since the beginning of the investments even up to now hasn't been very clear to investors I was wondering like now the investment is over. Could you talk a little bit about kind of what the thesis was and what went wrong, what we've learned and what to expect going forward? The second part of the question was I'm thinking about like banking or India in general in terms of what kind of risks have surfaced recently are likely to surface over time? And how do we protect against those kind of potential risks, specifically to finance and banking because that is our second largest investment in Fairfax India?

So on SanMar just on the exit, we it would have needed more capital committed. And the controlling shareholder wanted to buy it. And we thought we had other opportunities. And so that's really what we thought with SanMar, on banking and risks, I'd say India went through a nonbanking financial crisis from 2018 to 2019. and it was quite severe. The government decided not to help. And so it went on for a couple of years. But from that, banks were in the best financial shape that they've ever been. Well, at least for 20, 30 years. And so the banking industry is actually well capitalized, actually much better capitalized than most markets. And then in the private sector banks are better capitalized than the government own banks as well. So they've been doing very well. Paresh is here. And Paresh is our -- he's one of the most respected banking mine. He started HDFC Bank in 1994. He spent 24 years helping it -- building it into one of India's most valuable private sector banks, and rising the Deputy Managing Director. Prior to HFC, he spent 9 years at Citibank, and so we're fortunate to have him as a senior adviser at Fairfax India. He might also have a good perspective on where the industry stands today, so I'll let him answer.

Yes. From my perspective, actually, the financial services sector overall and banking in particular, is clearly a structural secular growth opportunity in India. I mean, if you believe in India as an economy and we've heard enough and more of what's been happening over the years, you can't but be optimistic about financial services and banking. And the way it works is it's a virtuous cycle because if India has to grow at 6, 6.5, 7, whatever percent you believe real GDP growth will be. It requires the support of financial services, credit growth, payments. And Similarly, when you have that growth and the trickle down effect of that growth into income levels, saving levels, the middle class growing, that generates the need for financial services. So it's very much a virtuous cycle. And we've seen, therefore, that the banking industry tends to grow at a little ahead of nominal GDP growth. So it's been 1.3 to 1.5x the growth rate of nominal GDP, and which is why we've seen earlier that growth rates have been typically in the low to mid-teens, and that's for the industry as a whole as far as banks are concerned, and then the private sector banks tend to gain market share from the public sector, and therefore, it's possible for those banks who have a good strategy and who can execute on it to grow at anywhere between mid-teens to maybe high teens or faster. Obviously, that has required investments in terms of the right people, the right technology, distribution. And again, because India is a large country, traditionally, the cost of distribution were much higher. But now with the digitization that you just spoke about, it's easier to access customers costs of servicing low ticket, small ticket transactions has come down. So it's clearly a huge opportunity. On the risk side, traditionally, at least certain specific banks and sometimes 1 sector more than the other, has taken the usual shocks which come with banking in terms of credit costs. We've been through credit cycles, but I think we've spoken about this a little earlier that historically, we haven't ever been in a situation where the Indian banking industry has had as low nonperforming loans as it is today. So it's one of the strongest it has been around 2%. There have been times when the banking industry in India used to be at high single digits. Today, it's at 2%. And so even if there are some cyclical pressures, headwinds, which come along with all that's happening in the world, banks are coming off a very low base. They are very well capitalized. And I'm not saying that this is something which we are seeing, but you have that foundation. And for banks which are then placed in a position to gain market share, either on the back of their deposit franchises or the way they balance growth and management of risk, the opportunity still remains extremely compelling.

Let's go to Jeff, mic 3.

We have a question about [indiscernible] and MaxOp well, relatively new investments, both [indiscernible] and MaxOp have grown dramatically since being acquired by Fairfax India. However, the fair value estimates decreased slightly in 2025. What were the main reasons for this? And what is the longer-term outlook for both companies.

No, there's a guy south of the border that might have helped decreased their value a little bit. But last year, India was a target, which was a little bit unexpected. They had a launch the 25% tariff, then took it to 50% tariffs. And so actually, [indiscernible] and MaxOp Global aluminum really had to deal with it. But GenX actually in particular, had quite had to deal with this. So let's bring up Nikhil, and I think he would give a good answer. So Nikhil and his brother, cofounded GenX in 2008, we own about 70% of the company. And the -- anyways, Nikhil studied industrial engineering and at the Institute of Technology and spent his career building Genx. And they've been exporting to Europe and North America since 1999. So I think, Nikhil, you'd be great to talk about how you've dealt with it. And also, you've been dealing with data centers as well. And so that would be probably an interesting thing to update people on the business, too. [Audio Gap] We never had a situation where any customers came back to us with a price decrease or the option that absorb the task. And the reason we think is because we were not selling commodity -- like aluminum as a commodity, but high engineering, high value-add critical components [Audio Gap] There was a dearth of capacity for these components in [indiscernible] We still get tax a lot because of the Section 232 tariff, which is applicable on aluminum. April 6, there has been a declaration, which says that anything that's going to the power grid infrastructure projects in the U.S. might get taxed less at 15%. So we are currently investigating if products fall in that category, and we're hoping if they will then -- or the tariff impact is that much lower. Data centers, I mean, it started actually with COVID because people started going more on Zoom and Teams and Netflix and so the demand for data centers went up now, it's because of AI. Any data center that's built requires a huge power infrastructure to support it. Whenever par infrastructure comes in, that's where our products come in, too. So we are seeing good demand on our legacy lugs where we would see very muted or very low demand because you are large expensive logs, we're seeing that demand jump and we're hoping this year, they will form a big chunk of our revenue. What we are also investigating with our customers is that we are hearing from our customers that have -- they are facing challenges with some other component -- critical components, which are needed for a data center build-out. We are trying to work with customers and seeing if we can expand our product portfolio to include those products as well. So we can help what we did in 2017 is essentially we have the ability to quickly install capacity, quickly grow the business and support the customers. So we're trying to see if we can do the same with some other mission-critical components that are used in data centers.

Can you just give them a sense of the scale of how many products you produce?

So it almost changes by the month, but I think last count, we do totally about 250 to 260 different types of SKUs. This year, we are also embarking on register GenX as a brand name in the U.S. and Canada. This year, we will start selling directly to distributors, so small electrical distributors, contractors, they can buy our products directly essentially catalog sales. Our first cut catalog is 88 different SKUs spread over 12 categories. For us, that's a mama task because each product that we make has to undergo that you are testing typical testing lead times or 3 months. Typical testing cost is roughly between $3,000 to $6,000. So it's not a cheap test, it's not a quick test. It's a very difficult expensive, very difficult to pass. We figured it out how to do it. That's what's keeping the lights on.

Richard, you've asked me questions in Portugal. You asked me a question when I presented in Greece, and now in Toronto. Great. Great to see you.

I won't ask you the question I asked you in Portugal. Two quick things. The first is on valuation of bio. You talked about the valuation of EBITDA a moment ago, but I assume that, that is an outcome of the DCF valuation. Will you talk about that. And particularly, in the DCF valuation, you use a growth rate of 3.5%, which it doesn't seem great shakes with an economy growing in real terms by more than 6%. So would you talk about that? And secondly, the 26%, which I think is owned by the governments, federal and state. Would it be a good thing or a bad thing if they reduce [Audio Gap] forget the back 3% each does the provincial and the federal government. That's what they hold. And it's always good to have the state government as your partner for the simple reason, a lot of regulatory stuff and they're very supportive. And there's a kind of an alignment of interest, so to say because it's highly regulated industry per se. So the government ownership and they have been -- at least from our experience the governments have been -- have given us a bit of free hand in terms of how to manage how to run. And precisely, that's well exhibited and the way the vial has performed as a company and how they have distinguished themselves from the airports globally and the way the airport has emerged so far. So this is despite the government being a partner. Thanks to the great team and the team. We have the flexibility to have -- who has to be the CEO is the management and then he has a full -- like as we outlined, we were able to transform our philosophy of totally decentralization and empowering the right management and just participate at the CapEx and the board level. And that has been working very well for us. And the government has been very supportive so far.

And then on the growth rate, we're going to have Debbie, our CFO, she built her career at PricewaterhouseCoopers before joining Northbridge in 2012, and she took VP roles over the last 7 years there, and then became CFO at Onlia before joining us directly in 2024, and she was appointed our CFO in March of last year. So Debbie, please just address on the DCF models of a 3.5% growth rate when India is growing much faster.

Thank you, Ben. Thank you for the question, my first year, and I'm in the hotspot. So I'll get used to this. That's fine. I think in general, you mentioned it, we use a DCF to value all of our private company investment it's a conservative, prudent way of looking at our private into we know that our intrinsic value is much higher. We look at a number of different factors, of course. And we've seen our investment in bile our investment in BAIL increased from 2024 to 2025. And a few reasons. We obviously took the opportunity to invest an additional 10% in BAIL to bring us up to the maximum of 74% equity interest, which is really great because we see the value that this asset has in our portfolio. And furthermore, the results have been fantastic in terms of delivery. So that just automatically contributes to our value growth. One of the challenging parts this year was, of course, the impact that the rupee depreciation has had. And I think if you look at note and Note 6. I'm an accountant. I will have to call out our notes. We've got great disclosure around the impact that some of those variables have had on the valuation. I think in terms of the airport, again -- sorry, the terminal growth rate rate approach. We look at this we monitor the growth in the sector. We monitor the growth in the industry, and we're comfortable right now with where our valuation is.

Yes. We want to base our investments on fundamentals, not on -- we want the market to discover the value.

But it's a good question. Thank you for facing it for the simple reason. I know that's also adding to the fact that how conservatively the output is valued. [indiscernible] has a history of -- if you take a 25, 30 years, where the economic growth rate was even slower than what it has been over the last decade, the overall passenger growth average has been 6% plus.

Yes. So thank you very much, Richard. And Richard [indiscernible] is a great value investor. He actually has a book that he's written well worth reading on value investing, called simple, not easy, but you won't learn much about India from the book. Let's go to mic 2, please.

My name is Jim [indiscernible] from Toronto and I'm a shareholder. My question is for Ben and for Gopal. What I'm interested in knowing is, what is the Fairfax management team right now seeing as there most significant risk or the thing that you are focused on with respect to long-term impacts, potential downside impacts and what kind of risk mitigation are you guys putting in place around those risks?

Like if you -- like elevated oil prices would be for an extended period of time, that would be like $200 on going up. That would be a problem. I think Iran RECONNECT attacking energy facilities all over the Middle East would not be very good for India because India, while 45% of their energy use is coal-based, they use about 25% is oil, but they import almost 90% of them quite hard in a high-priced environment because they're using U.S. dollars to purchase that oil, which then depreciates their currency. So that would be probably 1 of the bigger risks and then also high oil price is not good for air travel. Although, it's -- could be good for our shippers for Seven [indiscernible] but not good for them. I don't know, Gopal, if you have any big risk.

Generally, I mean, for India, for every $1 of increase in oil price cost of $2.5 billion of -- and say, for a $10 increase will have an impact of about 30 basis points of inflation and roughly 50 basis points on -- similar -- 25 basis point on the external account. That's the kind of impact we see. But as far as India's oil requirement is concerned, they import about 4.8 million barrels of oil per day. And right now, I think they're still -- they have diversified their sources to 41 different countries no longer the dependency of the Middle East is so high as it used to be, and they have quickly been able to diversify and they are now also allowed to import from Russia. So I think right now, what they are doing is they're running sort of 1 million-barrel per day for imports. India has a capacity of strategy capacity about 200 million barrels of oil. So if these conditions continue for 200 days, then we'll run out of oil. Otherwise they will continue to. So the thing which is more critical is, of course, 90% of the LPG is imported and there's a lot of dependency from Middle East, which is why there is a problem, and then government is now trying to make as much as possible the refiners to make more LPG although the efficiency wise is far less, but then they have to support the Marcellin the last decade, they've increased a number of cylinders to the households so much. they need to actually secure the LPG. And probably, this crisis is only a wake-up call and India takes measures, which are required to derisk.

One of the risks -- one of the ways they've reduced this risk is last year, I talked about Modi going to to visit -- Prime Minister Modi going to see President Trump, and they talked about Mission 500, which was taking the $150-or-so billion at the time of bilateral trade to $500 billion in 2030. The reason why President Trump took down the tariffs to 18% from 50, India is committed to buying $500 billion worth of energy and defense equipment and that kind of thing. I think like $80 billion to $100 billion is from Boeing Plains, but then the rest is energy from America. So that should ensure that India has good access to energy in case the price or the Middle East as continue to escalate. But thank you for the question. We don't -- I'm tweaking they have to do. India uses a propane what you call butane and propane mix. U.S. is largely propane. I think it's a question of time. So the takeaway for us is that cost of oil on the international market is the biggest risk right now that you SP1 India has had 3 recessions. So in the 78 years or so that they've been since independents, right? And so one was COVID. So an external shock. And then one was 79 to 80 and one was 72 to 73, both oil shocks, the 79% to 80% was more severe. But again, India was fine. India is in a much better position than they were in 79 and 80. They have, again, small deficit. They've got good currency reserves. They're a big economy now compared to back then. So much better shape, but it's not been a recession from internal problems. It's always been external shocks that have caused India's recession. And again, before COVID, the last recession was 1980.

So one key observation to bear in mind, I just came across just like me. I should state that is historically going back for every $1 of GDP, if we needed a 1 barrel of -- I'm just saying the index basis, if you need 1 barrel of incremental oil power x amount of growth that index has actually now come off to half a barrel of oil. So the dependency on oil for growth has substantially reduced by this government over the last time 15 years for sure. So that process is on. And incrementally, we're seeing, for example, the railways, no longer the railways is running on imported diesel. I think 95% plus the railway haulage is now entirely electricity and which is all coal domestically generated. And incrementally, as well, the power capacity is 80% is all renewable sources. So there is a huge leap forward in terms of what they have accomplished. And the oil thing is substantial, and we have a lot more to do. And in fact, recently, Mr. [indiscernible] published an article, it will be worth reading award. He has been rising what government needs to do at times like this.

Just curious, do you feel that Fairfax India is well positioned and well insulated from any of the disruptive capabilities of AI in the industries that you have investments in AI's disruptive capabilities over the next 5 years.

I don't think AI is a big risk to our businesses. But there are some businesses where they might be more -- but it seems more right now the employment challenge, right? It's value, IT services exports is the biggest export for India. And the billing platform might not be per person, it might be the value-added from the business. So that's the conversation going on in India right now. In terms of employment, it's only 5 million, 6 million people. So it's -- but so it really has a big impact because of how much revenue it brings in. I think the revenue stream will still be very strong. If you think of the Western world, Europe, the U.S., are they -- do they have the right workforces to utilize AI, get the data fidelity up and running and manage all the different agents that will be deployed in my view, India has that workforce. And so what's been developing over the years is the global capability centers, and they've started to employ a lot of people, where a company like a JPMorgan or something that has 50,000, 100,000 employees in India. Instead of using an Infosys or Wipro, they will do it themselves and hire people. And so I think that will grow. India is a Silicon Valley of that type of talent, IT service talent in that ecosystem. So I think that's very good for India. So we don't have the rest of the business. I think we're going to benefit from it. And actually, I think Harry has some good examples of how AI has benefited his business. So Harry, would you like to just mention maybe a few things where AI has been [indiscernible]

Sure. Happy to do that. I think for us, we see AI as a great opportunity, and I think we've seen already a lot of benefit that's come into our enterprise as a result of adoption of AI. So let's break this down into 2 or 3 areas. One is the fact that we're using -- the biggest challenge in an airport is that we have 4,000 acres of land with large A number of assets that have been deployed across the 4,000 acres to manage 4,000 acres and these disparate assets is always a challenge. So we're now building digital twin enabled platform, which is built on a BIM model with GIS data with data that uses IoT sensors that brings into a single platform to build a digital twin that reflects the actual built-out airport. And then we layer AI on top of that, which gives us predictive capability to figure out how these assets will perform and start fixing things before they break. And that is something that we are investing in a very big way from a digital asset management platform. We're also using -- we've got 2 partnerships with 2 leading AI service providers on 1 side. Looking at how to use all the data that we produce in an airport, in our retail stores, in our food and beverage stores to try and use that to maximize revenue. And I think that's -- we're working with KPMG on that. And [indiscernible] is another really fascinating company that's helping us sorry, we're working with New Sigma on that with KPMG on also improving the internal process of our organization. So today, for instance, we have a large number of procurement contracts that we issue every -- and all of this procurement responses to bidder queries. All of that happens using a Jennie engine. We're also now deploying LLM that we are exposing to our employees and in a secure sandbox environment, allowing enterprise-grade wipe coding. So young stars we've never quoted before are using LLM to generate code. So that they can write little applications that actually solve business problems and friction on an ongoing basis. We're seeing some very fascinating solutions. We don't have to go outside and get companies to SaaS companies to solve problems for us, our employees are writing code that enables them to solve their own problems. So I think overall, GAI is just a fascinating, fascinating opportunity, and we see huge operational improvements, reduction in cost, increase in revenue, all of that coming out of AI.

Thank you very much, Harry. So I think we have time for 2 more questions. So we'll turn it over to Jeff, mic 3.

Ben, we've got a lot of people waiting on the floor. Maybe I'd defer and you can take 2 more questions.

Sorry to the people online. Mic one, please?

Sam [indiscernible] from oilfield partners. My 2 questions are around BI. The first is, is it reasonable to assume that the EBITDA margins are the same in the 2 parts of the business, the aero and the non-aero business? And the second is, is it possible to give any disclosure around the regulated asset base, how big it is today and how it might be at the end of your planned investment over the next 3 or 4 years?

Sorry, can you repeat the second part?

The size of the regulated asset base today and in 3 or 4 years after you've made the investments that you plan on making?

So on EBITDA margin, I mean, the nonregulated is much much higher -- like do we disclose -- we generally don't disclose, but it will be much higher than, of course, the regulated asset base EBITDA. And the second question was -- like if you look at comparable airports, for example, like GMR as some comparable airports, they have a Hyderabad Airport, which is similar to ours where we save 4% on concessions with the government, whereas they have an airport in Delhi that they share 40% of the concessions with the government. So it's not -- so the profitability of our report can much -- is very favorable compared to a lot of them. But yes, we don't disclose the amount.

So the second question on [indiscernible], as I mentioned, I mean, the CP4 filings have happened, and we have committed about $2 billion plus CapEx over the next 5-year plan. period so the ERA approval also has an approval process for the CapEx plan that is being incurred. And we are confident that we will have an approval for whatever we plan to spend on the capacities. You can -- I mean, have a dump you can expect about 90%, 95% of whatever CapEx that we incur will go in to [indiscernible].

I guess this is the last question.

Thanks for having us. My name is [indiscernible]. I'm from [indiscernible], and I'm a Fairfax India shareholder both personally ended my phone. My question goes to -- directly to AI and data center as well as power question on, are you directly looking at data center infrastructure as well as power infrastructure? What does the landscape look like? What can you share in that space that you might be looking at? That's my first question. My second question is, can you share some of the nonobvious elements when you partially monetize some things in the portfolio? My second question is, can you share some of the nonobvious elements when you partially monetize some things in the portfolio, right? Some things, yes, it makes sense. But there are the things that you look at it and you kind of wonder what's the thinking behind it? If you can share some of the broader concepts on how do you think about partially monetizing anything that you have?

So why don't we -- I think that's a good question for Sumit. I would say 1 thing, though, on when areas hot like AI data centers or power infrastructure, the multiples tend to be quite good, right? So we tend to shy away from paying big valuations for things. So just add that. But I think Sumit, why don't you give an update on what we're seeing on the ground in India, that would be great.

So specifically on power assets and data centers now, as Ben said, both these areas are super hot right now in India. If you if you look at power, there are 2 sources of power primarily in India, one is thermal. Now thermal a few years back was available at throwaway prices, but ESG considerations were pretty large in acquiring thermal assets. And we evaluated the entire sector and then because of ESG considerations, we did move forward, but that was one purely economic consideration, it was a compelling opportunity, but for ESG concentration, we never move forward. The other source of power is renewables between wind, solar, et cetera. Typically, in a good case scenario, the wind, solar, given the CapEx and the revenue -- the unit pricing, renewables returned somewhere around a good case scenario, 13%, 14% rupee and converting to dollars is about 10% -- 10%, 11%. Now for Fairfax India, we have been a long-term threshold of 15% dollar. That's what we want to make. So we didn't find any compelling opportunity, which is giving high returns. That's the reason why we are sitting on sidelines and still waiting for any particular power asset to to acquire. On data center, again, there is a limited set of data centers which are coming up. The dynamics which is playing out in India is instead of technology providers, creating data centers, a bunch of real estate developers are creating data centers. So quality may not be perfect, but the valuations are just out of control. Real estate in India is as it is overpriced. And that basically spills over in the upfront valuation for data centers. Anything in data center is kind of going for 25, 30x EBITDA. Again, right now, it's not something where we think it's fairly priced to enter, but we are keeping a close control on what all is coming into the market and as soon as we see any opportunity. We think it's a large opportunity, and at some point in time, will jump in, but we are kind of staying disciplined and optimistic about it. So this is as far as power and data center is concerned. Anything else, Ben, you would want to ...

That's great, Sumit. And if you look at -- when they build out fiber optic cable, right, a lot of those companies went bankrupt, but then it allowed Netflix and like other companies to grow off of it. And so for us, like Microsoft and Google and Amazon are going to put the $70 billion into India to invest in the stuff, maybe years out, you don't need all that infrastructure, maybe then it becomes more interesting to us at that point in time. Let's -- there's only 1 other person in the room looking for a question. So we're going to allow one more question.

Thanks, Ben. Thanks, Paul. Congratulations on our phenomenal presentation. I really enjoyed it. I just have a question regarding the broad changes we have discussed in the economic and political landscape in India. You have rightfully mentioned that there have been a lot of positive changes like since the last -- over the last decade in India, a lot of bureaucratic rules have been struck down. But there is a lot of a dichotomy here. We have Mr. [indiscernible] here, who has been a champion of investing in India, and he has been struggling to get an approval for an IPO for the past 5 years. I'm so glad we have Mr. Amitabh [indiscernible] here. So if we could hear his perspective, how do we reconcile these 2 things where like we are still struggling in the bureaucratic mass to get approval for an IPO. And at the same time, we see all these positive developments happening in India. Thank you.

Yes. And it's not just India, right? Like if you want to get a mine approved in Canada, it can take over 15 years, too, right? So there's not -- there are processes that take time. And again, it's put us in a better position the airports worked out better than we could have imagined in terms of like if you wanted to build what Hari and [indiscernible] have built. You couldn't build it economically in the West or in Europe. You can't build it -- even in India now, I don't think you can build it at the same price and cost much more to be economic. So it will be hard to build a competing airport of our quality. But yes, to get the approval, it does take time. I don't know. Amitabh, would you like to comment anything about how the ease of access has improved. I would say 1 thing like I can an insight in patents go back like more than 10 years ago, some thousands of patents were being approved. And last year, 150,000 patents were approved, and so they hired a lot more people to approve patents. And so they're figuring all sorts of ways to make the system better, but there still is a process to the system. Maybe that's -- I think that's fine -- actually. I don't know.

Only optimism on which I would like to close is, as I mentioned to you and I was remarking about the MidEast problem, going back 35 years back in 1991, it was just that after the Gulf War, after whatever we went through, India reforms got unleashed, the Dr. Manmohan Singh and [indiscernible] government. So after that, every successive crisis, I don't think India has lost its opportunity. I mean, every government has reformed -- reformed after reforming. And last year, we saw this government taking certain reforms. So I think every crisis as an opportunity, and I feel all the more optimistic these are the -- these global conditions persist for some time. Government will have to do things be it privatization or be it getting approvals or doing more reforms. All of those things will be considered very positive changes and and government. I feel confident will be forced to do it for any reason.

Thank you very much. And so that's our meeting. And so just a couple of concluding remarks. If you want to go on a wonderful trip through India and learn more about our opportunities, you can speak to [indiscernible]. I don't know where -- there he is. Cassi is in the corner there in his booth, and it's a wonderful trip through multiple cities in India, and you get to see some of our companies. And I've even heard we might be having a quasi celebrity joining the trip from Fairfax, the guy named Peter, you might have heard of. And so you might get to spend some time with him, too, if you go on the trip. So lastly, events like this don't happen alone. So thank you to the Ritz Carlton, Gary and his team, Jen, Debbie and their teams Brad, Jennifer, John, Sumit and his team at Fairbridge, Jeff, Prem, Chandran and of course, [indiscernible] for making this event a great event. We're also happy to see Canada and India getting along better because a much improvement from the prior meeting. And also thank you, all of you, for taking the time to hear our story. Fairfax India is a result of tremendous collective effort. And we have been -- we think we have the best team to find ideas and solve problems together. Over the long term, Fairfax India offers global capital, a vehicle to invest in this fast-growing economy. We hope you left today with a clear picture of our vision. Thank you very much.