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 licensed Non-bank
Deposit Taker, will upload its quarterly report for the quarter ended 30 June 2020 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

28 July 2020

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Issue 19 28 July 2020

GENERAL FINANCE LIMITED
Quarterly report as at 30 June 2020

KEY RATIOS

Capital


30 June 2020


Our capital ratio calculated in accordance
with the 2010 Regulations*

25.21%

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 19 28 July 2020

Related Party Exposures


30 June 2020


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

2.05%

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).
































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

Issue 19 28 July 2020

Liquidity


30 June 2020


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

6.29 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 19 28 July 2020


SELECTED FINANCIAL INFORMATION



Quarter to
30 June
2020

Total Assets 47,076,580
Total Liabilities 41,172,967
Net Profit After Tax 70,919
Net Cash Flows from Operating Activities 9,596,799
Cash and Cash Equivalents 21,459,871
Capital (per 2010 Regulations) 5,828,400

Issue 19 28 July 2020

HOW THE RATIOS HAVE BEEN CALCULATED

CAPITAL RATIO


Position at 30 June 2020



Capital


Gross capital 5,903,613

Less deductions 75,213

Total capital 5,828,400



Risk

Risk Weighted
Exposures Exposure Weight Exposures

Cash 20,000 0% -
Cash at bank 21,439,871 20% 4,287,974
Residential mortgages:

LVR 70% and under 21,294,331 35% 7,453,016
LVR 70% - 80% 1,609,125 50% 804,562
LVR 80% - 90% - 100% -
LVR 90% - 100% - 125% -
LVR over 100% - 150% -
Second mortgages 1,336,287 150% 2,004,431
Property development loans:

LVR 60% and under - 150% -
LVR 60% - 100% 1,091,701 200% 2,183,402
Other assets (Unsecured) - 200% -
Other assets 210,052 350% 735,182
Investments - 600% -
Deductions from capital 75,213

-

Total credit risk weighted exposures
(A)

17,468,567

Total assets (B) 47,076,580

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

5,647,700


Total Exposures

23,116,267

Capital Ratio

25.21%
(being Total Capital/Total Exposures)

Issue 19 28 July 2020

AGGREGATE EXPOSURE TO RELATED PARTIES

Loans and other on balance sheet exposures to related
parties (A) 119,717
Other related party exposures (B) Nil
Capital 5,828,400
(A + B) / C 2.05%

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


LIQUIDITY

Liquidity (A) 21,459,871

3 month expected loan receivables (B) 11,469,616

3 month expected gross deposit redemptions (C) 5,232,550

(A + B) / C 6.29 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.