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 December 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

30 January 2020

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Issue 17 30 January 2020
GENERAL FINANCE LIMITED
Quarterly report as at 31 December 2019


KEY RATIOS

Capital


31 December 2019


Our capital ratio calculated in accordance
with the 2010 Regulations*

22.99%

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. 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 17 30 January 2020
Related Party Exposures


31 December 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 17 30 January 2020
Liquidity


31 December 2019


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

7.54 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 17 30 January 2020
SELECTED FINANCIAL INFORMATION



Quarter to
31 Dec
2019

Total Assets 40,182,503
Total Liabilities 34,461,965
Net Profit After Tax 173,876
Net Cash Flows from Operating Activities (3,945,931)
Cash and Cash Equivalents 12,024,775
Capital (per 2010 Regulations) 5,644,028

Issue 17 30 January 2020
HOW THE RATIOS HAVE BEEN CALCULATED

CAPITAL RATIO


Position at 31 December 2019



Capital


Gross capital 5,720,538

Less deductions 76,510

Total capital 5,644,028



Risk

Risk Weighted
Exposures Exposure Weight Exposures

Cash 12,024,775 20% 2,404,955
Residential mortgages:

LVR 70% and under 18,794,549 35% 6,578,092
LVR 70% - 80% 4,262,574 50% 2,131,287
LVR 80% - 90% - 100% -
LVR 90% - 100% - 125% -
LVR over 100% - 150% -
Second mortgages 1,677,545 150% 2,516,318
Property development loans:

LVR 60% and under 2,416,651 150% 3,624,977
LVR 60% - 100% 776,990 200% 1,553,980
Other assets (Unsecured) - 200% -
Other assets 152,909 350% 535,182
Investments - 600% -
Deductions from capital 76,510

-

Total credit risk weighted exposures (A)

19,344,791

Total assets (B) 40,182,503

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

5,208,638


Total Exposures

24,553,429

Capital Ratio

22.99%
(being Total Capital/Total Exposures)

Issue 17 30 January 2020
AGGREGATE EXPOSURE TO RELATED PARTIES

Loans to related parties (A) Nil
Other related party exposures (B) -
Capital 5,644,028
(A + B) / C Nil

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


LIQUIDITY

Liquidity (A) 12,024,775

3 month expected loan receivables (B) 3,812,947

3 month expected gross deposit redemptions (C) 2,100,638

(A + B) / C 7.54 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.