General Capital (GEN:NZ) subsidiary General Finance updates

General Capital Limited
Level 7, 12-26 Swanson Street,
PO Box 1314, Shortland Street,
Auckland, New Zealand. 1140.
Phone +64 9 304 0145
Fax +64 9 358 3858



General Capital (GEN:NZ) subsidiary General Finance updates Disclose Register.

General Capital Limited advises that its subsidiary General Finance Limited, a Non Bank Deposit
Taker, will upload its quarterly report for the quarter ended 30 September 2018 to the Disclose
Register today.

Mr. Brent King, Managing Director, explained that this report is a required as General Finance
Limited holds a Non Bank Deposit Taker licence and the reporting is a requirement of the Financial
Markets Conduct Act 2013.

Mr. King said, “As the market is aware, General Capital Limited purchased General Finance on 3
August 2018. This is the first reporting by General Finance Limited since that date.”

The information can be found at www.disclose-register.companiesoffice.govt.nz.

On behalf of the Board of Directors

Brent King
Managing Director
General Capital Limited
021 632 660
brent.king@irg.co.nz

29 October 2018

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Issue 12 29 October 18
GENERAL FINANCE LIMITED
Quarterly report as at 30 September 2018


KEY RATIOS

Capital


30 September 2018


Our capital ratio calculated in accordance
with the 2010 Regulations*

37%

Minimum capital ratio required by our
Trust Deed

8% if we have a credit rating**, or
15% if we do not have a credit rating

Minimum capital ratio that must be
included in the trust deed under reg 8(2) of
the 2010 Regulations*

8% if we have a credit rating, or
10% if we do not have a credit rating

The capital ratio is a measure of the extent to which General Finance is able to absorb losses without becoming
insolvent. The lower the capital ratio, the fewer financial assets General Finance has to absorb unexpected losses
arising out of its business activities.

































* Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010

** The creditworthiness of the General Finance is not rated by an approved rating agency. This is because we
operate under the Deposit Takers (Credit Ratings Minimum Threshold) Exemption Notice 2016, exempting us from
the Non-bank Deposit Taker Act 2013 requirement to have a credit rating. The exemption applies because we have
liabilities of less than $20 million, making it unduly onerous to comply with the requirement have a credit rating, and
because we maintain a capital ratio of at least 10%. This means that General Finance has not received an
independent opinion, from an approved source, of its capability and willingness to repay its debts.

Issue 12 29 October 18
Related Party Exposures


30 September 2018


Our aggregate exposures to related
parties as calculated in accordance with
the 2010 Regulations*

$nil

Maximum limit on aggregate exposures to
related parties that we must not exceed
that is included in our Trust Deed

10% of capital

Maximum limit on aggregate exposures to
related parties that we must not exceed
that must be included in our Trust Deed
under reg 23(3)(b) of the 2010
Regulations*

15% of capital

Related party exposures are financial exposures that General Finance has to related parties. A related party is an
entity that is related to General Finance through common control or some other connection that may give the party
influence over General Finance (or General Finance over the related party). These related parties include our
directors, our parent company Corporate Holdings Limited and Investment Research Group Limited.



































* Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010

Issue 12 29 October 18
Liquidity


30 September 2018


Our liquidity calculated in accordance with
the quantitative liquidity requirements
included in our Trust Deed

4.87 times

The minimum liquidity requirements
required by our Trust Deed

A liquidity cover ratio of 1.25 times

Liquidity requirements help to ensure that General Finance has sufficient realisable assets on hand to pay its debts
as they become due in the ordinary course of business. Failure to comply with liquidity requirements may mean that
General Finance is unable to repay investors on time, and may indicate other financial problems in its business.

Issue 12 29 October 18
SELECTED FINANCIAL INFORMATION



Quarter to
30 Sep
2018

Total Assets 14,484,772
Total Liabilities 11,067,712
Net Profit After Tax 60,671
Net Cash Flows from Operating Activities (974,378)
Cash and Cash Equivalents 3,354,886
Capital (per 2010 Regulations) 3,349,016

Issue 12 29 October 18
HOW THE RATIOS HAVE BEEN CALCULATED

CAPITAL RATIO



Position at 30 September 2018



Capital


Gross capital 3,417,060

Less deductions 68,044

Total capital 3,349,016

334901.6


Risk

Risk Weighted
Exposures Exposure Weight Exposures

Cash 3,354,886 20% 670,977
Residential mortgages:

LVR 70% and under 8,825,338 35% 3,088,868
LVR 70% - 80% 301,632 50% 150,816
LVR 80% - 90% - 100% -
LVR 90% - 100% - 125% -
LVR over 100% - 150% -
Second mortgages 1,276,955 150% 1,915,433
Property development loans:

LVR 60% and under 287,463 150% 431,195
LVR 60% - 100% 308,346 200% 616,692
Other assets (Unsecured) - 200% -
Other assets 62,108 350% 217,378
Investments - 600% -
Deductions from capital 68,044

-

Total credit risk weighted exposures (A)

7,091,359

Total assets (B) 14,484,772

Operational and Market Exposures (A+B)/2x0.175

1,887,911


Total Exposures

8,979,270

Capital Ratio at 30 September 2018

37%
(being Total Capital/Total Exposures)

Issue 12 29 October 18
AGGREGATE EXPOSURE TO RELATED PARTIES

Nil.

We have not made any related party loan advances.


HOW LIQUIDITY MEASURES HAVE BEEN CALCULATED

Liquidity 3,354,886
3 month expected loan receivables 2,072,819
3 month gross deposit redemptions 1,114,330

*The Liquidity Cover Ratio is calculated by dividing Liquidity plus the 3 month expected loan
receivables, by the 3 month gross deposit redemptions.