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 30 June 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.

For further information contact:

Brent King
Managing Director
General Capital Limited
+64 21 632 660
Brent.King@gencap.co.nz

26 July 2019

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Issue 15 26 July 2019
GENERAL FINANCE LIMITED
Quarterly report as at 30 June 2019


KEY RATIOS

Capital


30 June 2019


Our capital ratio calculated in accordance
with the 2010 Regulations*

28%

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

** General Finance is exempt from the requirement to have its creditworthiness assessed 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 Takers Act 2013 requirement to have a credit rating. The exemption
applies because we have liabilities of less than $20 million as at 1 October 2018, calculated as the average of
General Finance’s liabilities as at the end of each of the 12 months preceding that date, 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% to qualify
for the exemption (and at least 15% to comply with our Trust Deed). This means that General Finance has not
received an independent opinion on its capability and willingness to repay its debts from an approved source.

The exemption applies until 29 February 2020 on the above basis. If General Finance’s average liabilities as at 1
October 2019 reach $20 million or more it will still qualify for the exemption on and from 1 March 2020 so long as it
has liabilities of less than $40 million and maintains a capital ratio of at least 12% to qualify for the exemption (and at
least 15% to comply with our Trust Deed), and continues to meet the other terms and conditions of the exemption.

Issue 15 26 July 2019
Related Party Exposures


30 June 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 15 26 July 2019
Liquidity


30 June 2019


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

8.85 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 15 26 July 2019
SELECTED FINANCIAL INFORMATION



Quarter to
30 Jun
2019

Total Assets 25,205,067
Total Liabilities 20,054,810
Net Profit After Tax 59,278
Net Cash Flows from Operating Activities (3,535,447)
Cash and Cash Equivalents 4,229,873
Capital (per 2010 Regulations) 5,074,333

Issue 15 26 July 2019
HOW THE RATIOS HAVE BEEN CALCULATED

CAPITAL RATIO
Position at 30 June 2019



Capital


Gross capital 5,150,257

Less deductions 75,924

Total capital 5,074,333



Risk

Risk Weighted
Exposures Exposure Weight Exposures

Cash 4,229,873 20% 845,975
Residential mortgages:

LVR 70% and under 13,700,982 35% 4,795,344
LVR 70% - 80% 2,617,491 50% 1,308,745
LVR 80% - 90% - 100% -
LVR 90% - 100% - 125% -
LVR over 100% - 150% -
Second mortgages 1,702,508 150% 2,553,762
Property development loans:

LVR 60% and under 1,687,208 150% 2,530,812
LVR 60% - 100% 1,133,487 200% 2,266,974
Other assets (Unsecured) - 200% -
Other assets 57,594 350% 201,579
Investments - 600% -
Deductions from capital 75,924

-

Total credit risk weighted exposures (A)

14,503,191

Total assets (B) 25,205,067

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

3,474,473


Total Exposures

17,977,664

Capital Ratio

28%
(being Total Capital/Total Exposures)

Issue 15 26 July 2019
AGGREGATE EXPOSURE TO RELATED PARTIES

Loans to related parties (A) 314,939
Other related party exposures (B) -
Capital 5,074,333
(A + B) / C 6%

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


LIQUIDITY

Liquidity (A) 4,229,873

3 month expected loan receivables (B) 5,301,648

3 month expected gross deposit redemptions (C) 1,077,587

(A + B) / C 8.85 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.