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 September 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

29 October 2019

---

Issue 16 29 October 2019
GENERAL FINANCE LIMITED
Quarterly report as at 30 September 2019


KEY RATIOS

Capital


30 September 2019


Our capital ratio calculated in accordance
with the 2010 Regulations*

25%

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 has been rated by Equifax Australasia Credit Ratings Pty Ltd (“Equifax”). Equifax gives ratings
from AAA through to C (excluding ratings attaching to entities in default).

Equifax has issued General Finance a credit rating of BB- with a Positive Outlook, as at March 2019. According to
Equifax’s criteria, this rating is classified as “Near Prime” and has “Low to Moderate” risk level. Equifax’s credit rating
report for General Finance can be accessed at www.business.govt.nz/disclose.

Issue 16 29 October 2019
Related Party Exposures


30 September 2019


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 16 29 October 2019
Liquidity


30 September 2019


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

23.89 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 16 29 October 2019
SELECTED FINANCIAL INFORMATION



Quarter to
30 Sep
2019

Total Assets 31,353,192
Total Liabilities 25,805,673
Net Profit After Tax 97,263
Net Cash Flows from Operating Activities (2,791,535)
Cash and Cash Equivalents 7,471,050
Capital (per 2010 Regulations) 5,466,964

Issue 16 29 October 2019
HOW THE RATIOS HAVE BEEN CALCULATED

CAPITAL RATIO

Position at 30 September 2019



Capital


Gross capital 5,547,520

Less deductions 80,556

Total capital 5,466,964



Risk

Risk Weighted
Exposures Exposure Weight Exposures

Cash 7,471,050 20% 1,494,210
Residential mortgages:

LVR 70% and under 15,404,042 35% 5,391,415
LVR 70% - 80% 2,980,011 50% 1,490,005
LVR 80% - 90% - 100% -
LVR 90% - 100% - 125% -
LVR over 100% - 150% -
Second mortgages 1,591,905 150% 2,387,858
Property development loans:

LVR 60% and under 1,782,140 150% 2,673,210
LVR 60% - 100% 1,867,391 200% 3,734,782
Other assets (Unsecured) - 200% -
Other assets 176,097 350% 616,340
Investments - 600% -
Deductions from capital 80,556

-

Total credit risk weighted exposures
(A)

17,787,820

Total assets (B) 31,353,192

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

4,299,839


Total Exposures

22,087,659

Capital Ratio

25%
(being Total Capital/Total Exposures)

Issue 16 29 October 2019
AGGREGATE EXPOSURE TO RELATED PARTIES

Loans to related parties (A) Nil
Other related party exposures (B) -
Capital 5,466,964
(A + B) / C Nil

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


LIQUIDITY

Liquidity (A) 7,471,050

3 month expected loan receivables (B) 6,708,178

3 month expected gross deposit redemptions (C) 593,523

(A + B) / C 23.89 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.