General Capital (GEN:NZ) Annual Meeting Presentations

Welcome to
General Capital Limited’s
Annual Meeting
1
2:00pm Thursday 24 September 2020

Chairman of
the meeting
：
Simon McArley
2

Brent KingRewiBugoHueiMin (Lyn) Lim
Simon McArleyGraeme Brown
3

4

1. Chairman’s Introduction
5

2. Apologies
6

To receive and consider the annual report of the
Company for the year ended 31 March 2020,
including the financial statements for that year
and the directors’ and auditor’s reports to the
shareholders.
3. Annual Report
7

Chairman’s address
8

Managing
Director:
Brent King
9

10

11

12

13

14

15

16

17

18

19

20

21

22

23
Thank you for
attending
General Capital
Limited’s
Annual Meeting
23

Welcome to
General Capital Limited’s
Annual Meeting
1
2:00pm Thursday 24 September 2020

Chairman of
the meeting
：
Simon McArley
2

Brent KingRewiBugoHueiMin (Lyn) Lim
Simon McArleyGraeme Brown
3

4

1. Chairman’s Introduction
5

2. Apologies
6

To receive and consider the annual report of the
Company for the year ended 31 March 2020,
including the financial statements for that year
and the directors’ and auditor’s reports to the
shareholders.
3. Annual Report
7

Chairman’s address
8

Managing
Director:
Brent King
9

10

11

12

13

14

15

16

17

18

19

20

21

22

23
Thank you for
attending
General Capital
Limited’s
Annual Meeting
23

Welcome to
General Capital Limited’s
Annual Meeting
1
2:00pm Thursday 24 September 2020

Chairman of
the meeting
：
Simon McArley
2

Brent KingRewiBugoHueiMin (Lyn) Lim
Simon McArleyGraeme Brown
3

4

1. Chairman’s Introduction
5

2. Apologies
6

To receive and consider the annual report of the
Company for the year ended 31 March 2020,
including the financial statements for that year
and the directors’ and auditor’s reports to the
shareholders.
3. Annual Report
7

Chairman’s address
8

Managing
Director:
Brent King
9

10

11

12

13

14

15

16

17

18

19

20

21

22

23
Thank you for
attending
General Capital
Limited’s
Annual Meeting
23

Welcome to
General Capital Limited’s
Annual Meeting
1
2:00pm Thursday 24 September 2020

Chairman of
the meeting
：
Simon McArley
2

Brent KingRewiBugoHueiMin (Lyn) Lim
Simon McArleyGraeme Brown
3

4

1. Chairman’s Introduction
5

2. Apologies
6

To receive and consider the annual report of the
Company for the year ended 31 March 2020,
including the financial statements for that year
and the directors’ and auditor’s reports to the
shareholders.
3. Annual Report
7

Chairman’s address
8

Managing
Director:
Brent King
9

10

11

12

13

14

15

16

17

18

19

20

21

22

23
Thank you for
attending
General Capital
Limited’s
Annual Meeting
23

Welcome to
General Capital Limited’s
Annual Meeting
1
2:00pm Thursday 24 September 2020

Chairman of
the meeting
：
Simon McArley
2

Brent KingRewiBugoHueiMin (Lyn) Lim
Simon McArleyGraeme Brown
3

4

1. Chairman’s Introduction
5

2. Apologies
6

To receive and consider the annual report of the
Company for the year ended 31 March 2020,
including the financial statements for that year
and the directors’ and auditor’s reports to the
shareholders.
3. Annual Report
7

Chairman’s address
8

Managing
Director:
Brent King
9

10

11

12

13

14

15

16

17

18

19

20

21

22

23
Thank you for
attending
General Capital
Limited’s
Annual Meeting
23

Welcome to
General Capital Limited’s
Annual Meeting
1
2:00pm Thursday 24 September 2020

Chairman of
the meeting
：
Simon McArley
2

Brent KingRewiBugoHueiMin (Lyn) Lim
Simon McArleyGraeme Brown
3

4

1. Chairman’s Introduction
5

2. Apologies
6

To receive and consider the annual report of the
Company for the year ended 31 March 2020,
including the financial statements for that year
and the directors’ and auditor’s reports to the
shareholders.
3. Annual Report
7

Chairman’s address
8

Managing
Director:
Brent King
9

10

11

12

13

14

15

16

17

18

19

20

21

22

23
Thank you for
attending
General Capital
Limited’s
Annual Meeting
23

---

General Capital Limited Annual Meeting
24th September 2020
Speech – Chairman of the Meeting, Simon McArley
1.0 Introduction
Good afternoon everybody.
It is 2:00pm and it is time to start the Annual Meeting of Shareholders of
General Capital Limited.
My name is Simon McArley, I am Independent Director of General Capital
and the Chair of the Audit Committee. The Board has asked me to Chair the
meeting today.
I would like to introduce my fellow Directors.
 Ms. Lyn Lim;
 Mr. Brent King our Managing Director.
I note that this is the adjourned meeting from 28 August 2020 at which we
were unable to achieve a quorum due to Covid-19 restrictions. The Board
adjourned that meeting until today, and I’m pleased that we are able to
continue with the meeting following relaxation of the restrictions last night.
I am advised:
➢ that the notice of meeting has been in shareholders hands for the
required period; and ➢ that the Annual Report has been available to
Shareholders for the
required period; and
 we have a correctly
constituted meeting.
I declare the meeting open.
It is my pleasure to formally welcome you all here today to the
Second Annual Meeting of General Capital Limited.
I am advised that we have received 23 proxies representing 4.11%
of the votes.

1.0 Apologies
We have Apologies from
The Chairman of the Board of Directors Mr. Rewi Bugo and
Mr. Graeme Brown. Both are unable to travel due to Covid-19
restrictions. Mr Bugo is in Kuching, Malaysia and Mr Brown is in
Singapore. They extend their apologies. They are listening to the
meeting remotely.
Assuming there are no technical difficulties, Mr Bugo and Mr Brown
are available to answer questions from shareholders that are not able
to be answered in this room.
We have an Apology from:
Mr. Rob Hart, Shareholder of General Capital and Director of General
Finance.
Do we have any others?

2.0 Attendance
We also have in attendance:
• Mr. Jonathan Clark the Chief Financial Officer of our Group.
• General Capital’s auditors, Baker Tilly Staples Rodway represented by
Mr. Geetesh Raniga.

• The Chair of General Finance Ltd. Mr Don Hattaway
• Executive Director General Finance Greg Pearce.

3.0 The Companies Interest Register
➢ I confirm that the company’s Interest Register is available for
inspection.

4.0 The Meeting
In the interests of a full and open discussion, the Directors of General
Capital Ltd have allowed non-shareholders to attend this meeting.
 There is no automatic right for a non-shareholder to attend this
meeting.
 There is no automatic right for non-shareholders to speak without
the consent of the Chair.
 Please note if you would like to speak at any time
o Please raise your hand; and
o Wait to be acknowledged by the Chair.
o Please give your name and advise whether you are a
shareholder, a member of the media or a guest.
The Chair will retain the right to accept or reject the comments or
questions on a case by case basis.
 ➢ I ask that all mobile phones be turned off or to silent
 ➢ I ask that you note the exits which we will need to use in the event
of an emergency.
 We ask that you observe Covid-19 social distancing protocols during
and after the meeting.


2.0 Agenda
I am sure you have all read the Notice of Meeting and the attachments. We
will take these as read.
We have dealt with items 1 and 2 on the Agenda
3.0 Chairman’s Address
We now turn to the Chairman’s address.
4.0 To Receive the Annual Report
To receive and consider the Annual Report, including the audit report and
financial statements, for the year ended 31 March 2020.
The Annual Report has been in all shareholders hands for the required
period.

CHAIRMAN COMMENTS
Mr Rewi Bugo, the Chair of General Capital has asked me to make the
following comments on behalf of the Company.
I hope that all shareholders have read the Annual Report. It is clear that
since completion of the Reverse Takeover transactions in August 2018 we
have been working hard to add value to the General Capital Group.
I draw your attention to page 6 of our Annual Report which shows that we
have made significant progress over the past two years. All existing
shareholders will have seen that their investment has grown and when
combined with the warrants on issue there is an opportunity for investors
to take advantage of the growth of the Group.
  We have had significant growth.
  Prior to the purchase of General Finance and Investment Research
Group the market Capitalisation of Mykco (the previous name of the
listed Company) was less than $1.0m. Today, excluding warrants on
issue, we are approximately 13 times that value.
  The Group’s total assets have grown from $1 million when it was a
just a listed shell Company in 31 March 2018 to $24 million at March
2019 to $51 million at March 2020.
 The Group had strong cash reserves of $13 million at March 2020.
  I do recommend that you read the Annual Report in detail.
  Our CFO, Jonathan Clark or our Auditors, Baker Tilly Staples
Rodway are available to answer any technical questions during or
after the meeting.
I now ask our Managing Director, Brent King to address the Meeting.
[At this point Mr King will speak to his own speech notes]
Thank you, Brent - very informative.
Do we have any questions from Shareholders on the Annual Report or
other matters discussed by Mr King?
Ladies and gentlemen, we have had sufficient discussion [on these items].
As such we will move to the Resolution.

5.0 Resolution 1: Auditors
To record that the Company’s Auditors, Baker Tilly Staples Rodway
Auckland, are automatically reappointed as auditors pursuant to section
207T of the Companies Act 1993 and to consider, and if thought fit, to pass
the following ordinary resolution:
“That the directors of the Company be authorised to fix the fees and
expenses of the auditors of the Company for the financial year ending 31
March 2021.”
I move the motion
Do we have a seconder? Thank you _____________

I now open the matter for discussion. Are there any questions from
Shareholders?
We have had sufficient time to discuss the matter.
As such I put Resolution 1 to the vote.
Shareholders, please fill in your voting forms and hand them to the
Computershare representatives who will collect them from you.
While Computershare are tallying the results, we will move onto the next
agenda item.

6.0 General Business
Does anyone have any item of General Business they wish to raise?
Discussion Closing

7.0 Results of Resolution
Computershare have tallied shareholders votes on the resolution and I can
confirm that it has been [passed/ voted against], with XX% of shareholders
voting in favour, XX% of shareholders voting against and XX% of
shareholders abstaining from voting.
Ladies and Gentlemen, thank you for your attendance at this Annual
Meeting today. We welcome you to stay for refreshments and a chat.
The meeting closed at:

---

Managing Director’s Speech to General Capital Annual Meeting 24th September
2020
SLIDE 9
Thank you, Mr. McArley,
Good afternoon everybody.
It seems like a long time since we have met to discuss the progress that General Capital
has made.
It really has been a very eventful year.
We will deal with matters in two parts today:
1) The year to 31-3-2020; then
2) An update on the first 6 months particularly focusing on the impact of Covid. I
will then touch on some targets and strategy for the 6 months to 31-3-21.
Firstly, the acquisition of the Financial services businesses was made just over 2 years
ago in early August 2018.
We can see from the Annual Report that the acquisition has gone very well.
I draw your attention to page 6 of our Annual Report which Mr McArley touched on
earlier.
SLIDE 10
Graph 1

Page 8
SLIDE 11
Graph 2


In Summary

We had a very good year to 31-3-20 .The significant growth plus we are holding a
significant cash buffer and we were profitable .This set us up well for 2021.
In Late February we were in a 2 day Planning session for the new year.
At that time the impact of Covid was small. We were setting targets and budgets. The
impact was just starting to take effect. At that time most people in the World believed it
was a Northern Hemisphere issue (China , Italy etc.) and that we wouldn’t get it down
here in New Zealand and hence we should stay on our growth course.
We were fortunate that we were together and that we could assess the developments.
We took a practical view that if matters continued to deteriorate, we would increase our
weighting to cash and reduce exposure to the loan /property market.
We set as an imperative that we ensure that we could handle the difficult issues that
would arise irrespective of their timing or magnitude.
Issues such as:
 A slow-down of Deposit Inflow
 A reduction in Deposit Reinvestment
 An increase in demand for early withdrawal on emergency grounds not limited
to themselves but sometimes for their family.
On the lending side
 An increase in borrowers inability to pay monthly instalments
 An increase in loans not being repaid on due date
 An increase in Borrowers seeking additional funding
 A slowing of borrowers ability to complete the task that they had borrowed for
e.g. to sell their property , to complete their extension etc etc.
In the circumstance of major market disruptions all the pressure on a financial
institution is always on cash .
We focused on cash and made sure we could comfortably deal with any issue.
How did we do ?
SLIDE 12
Graphs

You can see we maintained high liquidity
The big issues for us were

 We did not know when NZ would return to some form of normal, and
 We did not know what would happen to asset values post Lockdown.

Our plan was simple.
We set a plan for General Finance and General Capital to be in a position to meet all of
their obligations for over one year even if we had no cash inflow.
Let me say that again.
We set a plan for General Finance and General Capital to be in a position to meet all of
their obligations for over one year even if we had no cash inflow.
That was conservative in hindsight, but General Capital and General Finance were safe
and ready to build the loan book again.
We are safe and strong.
Our loan book which we reduced during Lockdown has been rebuilt.
With our strong cash holdings we are in a position to continue our growth path.
We have suffered by having our assets in cash instead of loans.
All investors will be aware that interest rates on deposits at banks have dropped
significantly.
The funds we were earning 7% or 8% or 9% on loans were now earning only 1% to
2% at the bank.
This hurt income and profits.
We certainly would have been more profitable if we had a larger loan book and less
cash . But that is the trade-off for safety. A larger loan book may have given us losses.
We are proud to say we have had no losses at all during that period.
Let us look at the graphs:
Cash Clearly the graphs show how we increased our cash until the end
of lockdown.

SLIDE 13

Deposits Clearly these dropped from the March high and recovered over the
subsequent months.
SLIDE 14

Gross Loans We reduced our loan book which has bounced back strongly
SLIDE 15
Total Assets Our Total assets dipped in April and May and they have steadily
rebuilt.
SLIDE 16
Combination Graph This shows the movement of the 4 key components.
Assets are now above March Levels
Deposits are now above March Levels
Loan book bouncing back strongly
Cash down from all-time highs but still at around 38% of total assets
Currently all aspects of the Balance sheet are heading in the right direction and
the group is in a strong position.

Let us now Turn to the future
SLIDE 17
Elle McPherson Fashion Week Ball. Slide

You will recall that we sponsored this last year. We gained a benefit from advertising as
part of the sponsorship.
This project has been excellent for us. There has been an improvement in name
recognition plus cost savings in media placements for Deposit advertising.
We will seek other similar opportunities in the future.

Shareholder Bonus.
You will recall that we announced last year that we are offering a shareholder bonus.
If a shareholder invests in General Finance Deposits they receive a bonus of 0.1%
I personally see this as the classic win / win.
The shareholders gain benefit from their deposit and the growth of the Group.
The group is able to grow faster and increase its income earning capacity.
Please contact us to discuss the interest rate we can offer you.

Minimum Holdings
We discussed this last year
All Shareholders will be aware that being a shareholder of a listed company is a 2-way
street. The company has an obligation to manage the business in the best interests of
the shareholders.
The Shareholder must seek to assist the Company and not cause undue cost.
The Directors as part of their cost management must review all costs.
We now have over 720 shareholders and over 620 holders of WB warrants.
This is a significant cost for a company of our size.
The Board of Directors will be considering this matter later in the year.
If you are a small shareholder, I strongly recommend that you consider your position.
The company may take the actions to reduce the number of minimum holdings using
the provisions in the constitution.
This would reduce General Capital’s listing costs.

General Finance Credit Rating
You may recall General Finance Ltd obtained a credit rating last year. We took the
decision to go through the process and pay the cost even though there was no need to
do so. We wanted to ensure we have an open and transparent relationship with our
investors. We want investors to make an informed decision. The Board of General
Finance was very pleased to receive a BB-. Based on the 31-3-20 Accounts
No informed person would expect us to have the top Credit Rating immediately. We
are realistic.
This year has been tough for most financial institutions with the majority having their
ratings downgraded.
We are pleased to announce that Equifax sent their new Credit Rating to General
Finance Directors last night.

They disclosed that the rating has been maintained at BB-
The outlook is stable (previous positive outlook)
Given the issues with Covid-19 and the financial services sector we are very pleased.
In discussions with Equifax we were advised that they were impressed by the way we
had managed matters during lockdown.
To give context the big four Australian Banks were downgraded by Fitch from AA- to A+
in April.
In April, Fitch affirmed the Ratings but downgraded the outlook for
Co-Operative Bank
Southland Building Society
Credit Union Baywide
Plus some others.

You can see that we are pleased with our rating given the Financial Services sector and
the NZ economy.
SLIDE 18
Investment Research Group Ltd ( IRG).
You will note on page 21 of our Annual Report, our Auditors Baker Tilly Staples Rodway
include a qualification in their Audit Report in relation to the IRG Goodwill balance.
We were unable to obtain sufficient appropriate audit evidence to support critical
assumptions and estimates used to determine the recoverable amount of the goodwill .......
Please take time to read this paragraph in full
I wanted to update you on progress.
We completed the yearbook last year and we are considering whether it is feasible to
print again this year. This year will be interesting as it will cover the Covid period.
We will consider and advise the market within 2 months.
Projects.

SLIDE 19
IRG has a mandate to manage a company named Cannabis and Bio-Science Corporation
Ltd. (CBC). Investment in this Company is currently available only to large investors.
If any shareholder wants to consider an investment please complete the form on the
IRG website. We will deal with you individually. This is NOT a public offer.

CBC ‘s Current Investments include:
SLIDE 20
Manuka RX
This is a company developing its business based on the very potent Manuka oil.
I recommend that you search ManukaRX.co.nz website.
It is certainly a product with significant potential.
SLIDE 21 - 22
Greenfern Industries Ltd.
This business is based in south Taranaki.
It is special in that it has its own Hydro Electric power plant.
IRG has an advisory mandate and CBC has shares in the company.
We cannot confirm further details on the projects yet; but we will advise shareholders
as matters develop.
We are working hard to earn income for IRG and the General Capital Group.
We are in discussions with a number of other parties in relation to potential mandates
and we will announce when appropriate.
We are working hard to show the Auditors that the Carrying value is appropriate.

Regulatory Restructure.
General Finance Ltd is a non-Bank deposit Taker Licensed by the Reserve Bank of New
Zealand. General Finance Ltd has a first line regulator of our Trustee, Covenant Trust
and ultimately RBNZ.

This structure allows us to take deposits from the public.
There is considerable talk about what may be occurring in the future in regard to
regulations.
This may alter to the point where New Zealand has neo Banks following the trends of
UK, Singapore, Australia etc.
We are watching this space closely and we are speaking with the authorities on a
regular basis, the last being as recent as last week.
I reiterate that this is a long way off however we will update our shareholders as soon
as there is any progress.

Fellow shareholders, Directors and staff:
Many thanks for contribution during this very weird time.
I am proud of how we have overcome the challenges to date.
This is not over but we are in a strong position.
Thank you all for your contribution and support.
We are now focusing on :
 Profitable growth in the Finance Book
 Acquisition opportunities
 Completion of Advisory Mandates

We want to make a strong return for shareholders in the next 6 months.

Thank you
Be safe and well