First Quarter 2024 Financial Results

Helios Fairfax Partners Corporation

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, May 13, 2024 (GLOBE NEWSWIRE) — Helios Fairfax Partners Corporation (TSX: HFPC.U) today announced its financial results for the three months ended March 31, 2024. All dollar amounts in this press release are expressed in US dollars. unless otherwise indicated. Financial results are derived from the interim consolidated financial statements prepared using the recognition and measurement requirements of the International Financial Reporting Standards issued by the International Accounting Standards Board (“IFRS Accounting Standards”) applicable to the preparation of interim financial statements, including International Accounting Standard 34 Interim Financial Reporting, unless otherwise stated.

Management Comment

“In the first quarter of 2024, the fair value of our positions in Helios Managed Investments increased by $8.5 million or 4.3% to $213.2 million. Since the company’s initial investments, fair value has grown nearly 27% as a result of the strong performance of the underlying investee companies. Our focus in 2024 is to complete the orderly exit of our non-core legacy investments and continue to deploy capital in investments that benefit from the long-term secular themes of technology and innovation and demographics and urbanization in African economies. With over $89 million in cash available at the end of the quarter, Helios Fairfax Partners remains well positioned to continue making what we believe are innovative and value-creating investments in Africa, as a trusted partner of choice for businesses and entrepreneurs.”

Highlights from the first quarter of 2024

• Book value per share for the quarter was $4.35 compared to $4.39 in Q4 2023.

• HFP reported a Q1 2024 net loss of $4.7 million compared to a net profit of $7.0 million in Q1 2023.

• Both the decrease in book value per share compared to the fourth quarter and the change from net income in the first quarter of 2023 to net loss in the first quarter of 2024 were due to unrealized losses from the company’s investment in TopCo LP that was driven due to lower cash flow expectations and a decrease in carried interest. These unrealized losses on TopCo LP investments were offset by projected unrealized gains related to Helios Managed Investments, as well as interest and dividend income.

Financial Position and Results of Operations

HFP reported a net loss of $4.7 million in the first quarter of 2024, compared to a net profit of $7.0 million in the comparable period of 2023. The net loss was primarily driven by unrealized investment losses of the company at TopCo. The unrealized losses on the company’s investment in TopCo were primarily driven by the impact of lower anticipated management fees for the Helios Funds, which reduces excess management fees for TopCo’s Class B and a decrease in expected carried interest receive from TopCo Class A. unrealized losses were offset by unrealized gains related to Helios Managed Investments, which increased due to the strong performance of the underlying investments in Helios Fund IV. Results of operations also include $4.5 million in expenses offset by interest and dividend income of $1.8 million.

The story continues

HFP reported a book value per share of $4.35 as of March 31, 2024, compared to $4.39 in the prior quarter.
The contribution to the book value per share from the increase in the fair value of the company’s investment in Helios Managed Investments was offset by the decrease in the book value per share from the unrealized loss on the company’s investment in TopCo, resulting in a nominal impact of the company’s investments .

Included in the book value per share is $89.3 million in cash and cash equivalents as of March 31, 2024, which is available to finance future investments. As of March 31, 2024, HFP had 108,094,107 common shares outstanding, compared to 108,169,817 common shares outstanding as of December 31, 2023.

HFP’s detailed Q1 report can be accessed on its website www.heliosinvestment.com/helios-fairfax-partners.

About Helios Fairfax Partners Corporation

Helios Fairfax Partners Corporation is an investment holding company whose investment objective is to achieve long-term capital appreciation by preserving capital by investing in public and private equity securities and debt instruments in Africa and in African companies or other companies with customers, suppliers or companies primarily conducted in Africa or dependent on Africa.

Contact information

Neil Weber
LodeRock Consultants
neil.weber@loderockadvisors.com
(647) 222-0574

This press release may contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may relate to the future prospects of the company or a portfolio investment and anticipated events or results and may include statements regarding financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividends, plans and objectives of the company. In particular, statements regarding future results, performance, achievements, prospects or opportunities of the Company, a portfolio investment or the African market are forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”. “, “predicts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or states that certain actions, events or results “may”, “could”, “would”. , “may”, “will” or “will be taken”, “will occur” or “be achieved”.

Forward-looking statements are based on our opinions and estimates as of the date of this press release and are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, level of activity, performance or achievements to be harmed. . be materially different from those expressed or implied in such forward-looking statements, including, without limitation, the following factors described in greater detail elsewhere in the company’s annual report: geopolitical risks; inflation and rising interest rates; financial market fluctuations; pace of completion of investments; minority investments; dependence on key personnel and risks associated with the Investment Advisory Agreement; concentration risk in Portfolio Investments, including geographic concentration and with respect to interests in Class A and Class B limited partnerships in the Portfolio Advisor; operational and financial risks of portfolio investments; assessment methodologies involve subjective judgments; judicial actions; use of leverage; foreign currency fluctuation; investments may be made in foreign private companies where information is unreliable or unavailable; significant ownership of Fairfax Financial Holdings Limited and HFP Investments Holdings SARL may adversely affect the market price of subordinate voting shares; emerging markets; Economic empowerment of black South Africans; South African gray list; economic risk; climate change, natural disasters and climate risks; tax risks; MLI; and trading price of subordinate voting shares in relation to the book value of the share. Additional risks and uncertainties are described in the Company’s annual information form dated April 2, 2024, which is available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.heliosinvestment.com/helios-fairfax-partners. These factors and assumptions are not intended to represent a complete list of factors and assumptions that may affect the company. These factors and assumptions, however, must be considered carefully.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update any forward-looking statements contained herein except as required by applicable securities laws.

GLOSSARY OF NON-GAAP AND OTHER FINANCIAL MEASURES

Management analyzes and evaluates the financial position of the consolidated company in several ways. The measure included in this press release, which has been used consistently and regularly disclosed in the company’s Annual Reports and interim financial reports, does not have a meaning prescribed in IFRS Accounting Standards and may not be comparable to similar measures presented by other companies. This measure is described below.

Book value per share – The company considers book value per share to be a key performance measure in assessing its objective of long-term capital appreciation while preserving capital. Book value per share is a key measure of company performance and is closely monitored. This measure is calculated by the company as common shareholders’ equity divided by the number of common shares outstanding.

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