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, has uploaded its quarterly report for the quarter ended 31 December 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

2 February 2021

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Issue 21 1 February 2021

GENERAL FINANCE LIMITED
Quarterly report as at 31 December 2020

KEY RATIOS

Capital


31 December 2020


Our capital ratio calculated in accordance
with the 2010 Regulations*

16.34%

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 Stable 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 21 1 February 2021

Related Party Exposures


31 December 2020


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

2.02%

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 21 1 February 2021

Liquidity


31 December 2020


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

3.92 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 21 1 February 2021


SELECTED FINANCIAL INFORMATION



Quarter to
31
December
2020

Total Assets
61,035,090

Total Liabilities
55,215,376

Net Profit / (Loss) After Tax
(110,743)

Net Cash Inflow / (Outflow) from Operating
Activities (17,782,293)

Cash and Cash Equivalents
6,072,234

Term Deposits
1
Capital (per 2010 Regulations)
3,000,000
5,741,257


1
New Zealand Registered Bank deposits with original term of greater than 180 days.

Issue 21 1 February 2021

HOW THE RATIOS HAVE BEEN CALCULATED

CAPITAL RATIO



Position at 31 December 2020



Capital


Gross capital 5,819,714

Less deductions 78,457

Total capital 5,741,257



Risk

Risk Weighted
Exposures Exposure Weight Exposures

NZ Registered Bank Deposits 9,072,234 20% 1,814,447
Investments in Bonds (rated long term claims):

with a rating grade of 1
1
786,744 20% 157,349
with a rating grade of 3
1
987,214 100% 987,214
Residential mortgages:

LVR 70% and under 33,211,107 35% 11,623,887
LVR 70% - 80% 9,101,312 50% 4,550,656
Second mortgages 105,694 150% 158,541
Other loans with qualifying security over land and
buildings:

LVR 70% and under 7,523,122 100% 7,523,122

Other assets 169,206 350% 592,221
Deductions from capital 78,457

-

Total credit risk weighted exposures (A)

27,407,437

Total assets (B) 61,035,090

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

7,738,721


Total Exposures

35,146,158

Capital Ratio

16.34%
(being Total Capital/Total Exposures)


1
Refer to Deposit Takers (Credit Ratings, Capital Ratios, and Related Party Exposures) Regulations 2010.

Issue 21 1 February 2021

AGGREGATE EXPOSURE TO RELATED PARTIES

Loans and other on balance sheet exposures to related
parties (A) 115,715
Other related party exposures (B) Nil
Capital 5,741,257
(A + B) / C 2.02%

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


LIQUIDITY

Liquidity (A) 9,072,234

3 month expected loan receivables (B) 7,931,056

3 month expected gross deposit redemptions (C) 4,338,869

(A + B) / C 3.92 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.