General Capital (GEN:NZ) subsidiary General Finance update

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 update.

General Capital Limited advises that its subsidiary General Finance Limited, a Non-bank Deposit Taker,
will upload its quarterly report for the quarter ended 31 March 2019 to the Disclose Register today.

Mr. Brent King, Managing Director, explained that this report is 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.

“We will continue to advise the market each time General Finance Limited uploads a document to the
Disclose Register”, said Mr. King.

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
+64 21 632 660
Brent.King@irg.co.nz

1 May 2019

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Issue 14 1 May 2019
GENERAL FINANCE LIMITED
Quarterly report as at 31 March 2019


KEY RATIOS

Capital


31 March 2019


Our capital ratio calculated in accordance
with the 2010 Regulations*

34%

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 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 to 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 14 1 May 2019
Related Party Exposures


31 March 2019


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

6%

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 14 1 May 2019
Liquidity


31 March 2019


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

22.54 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 14 1 May 2019
SELECTED FINANCIAL INFORMATION



Quarter to
31 Mar
2019

Total Assets 20,143,167
Total Liabilities 15,053,223
Net Profit After Tax 75,384
Net Cash Flows from Operating Activities (2,693,090)
Cash and Cash Equivalents 2,814,108
Capital (per 2010 Regulations) 5,008,991

Issue 14 1 May 2019
HOW THE RATIOS HAVE BEEN CALCULATED

CAPITAL RATIO
Position at 31 March 2019



Capital


Gross capital 5,089,943

Less deductions 80,952

Total capital 5,008,991



Risk

Risk Weighted
Exposures Exposure Weight Exposures

Cash 2,814,108 20% 562,822
Residential mortgages:

LVR 70% and under 12,059,087 35% 4,220,680
LVR 70% - 80% 926,038 50% 463,019
LVR 80% - 90% - 100% -
LVR 90% - 100% - 125% -
LVR over 100% - 150% -
Second mortgages 2,192,186 150% 3,288,279
Property development loans:

LVR 60% and under 1,416,483 150% 2,124,725
LVR 60% - 100% 602,411 200% 1,204,822
Other assets (Unsecured) - 200% -
Other assets 51,902 350% 181,657
Investments - 600% -
Deductions from capital 80,952

-

Total credit risk weighted exposures (A)

12,046,004

Total assets (B) 20,143,167

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

2,816,552


Total Exposures

14,862,556

Capital Ratio

34%
(being Total Capital/Total Exposures)

Issue 14 1 May 2019
AGGREGATE EXPOSURE TO RELATED PARTIES

Loans to related parties (A) 307,254
Other related party exposures (B) -
Capital 5,008,991
(A + B) / C 6%

*Related party exposures are calculated by dividing total related party exposures by Capital
(per 2010 Regulations).


LIQUIDITY

Liquidity (A) 2,814,108

3 month expected loan receivables (B) 4,579,319

3 month expected gross deposit redemptions (C) 328,080

(A + B) / C 22.54 times




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