General Capital (GEN:NZ) subsidiary General Finance update

General Capital Limited
Level 8, General Capital House,
115 Queen Street, Auckland CBD
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 March 2021 to the Disclose
Register today.

The unaudited quarterly report shows that General Finance’s assets have continued to grow and that
it has generated a strong profit for the quarter.

General Capital is expecting to report on the consolidated Group results for the year ended 31 March
2021 by 31 May 2021.

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

3 May 2021

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Issue 22 3 May 2021

GENERAL FINANCE LIMITED
Quarterly report as at 31 March 2021

KEY RATIOS

Capital


31 March 2021


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 22 3 May 2021

Related Party Exposures


31 March 2021


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

0.18%

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 22 3 May 2021

Liquidity


31 March 2021


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

3.55 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 22 3 May 2021


SELECTED FINANCIAL INFORMATION



Quarter to
31 March
2021

Total Assets
64,527,110

Total Liabilities
58,472,531

Net Profit / (Loss) After Tax
232,501

Net Cash Inflow / (Outflow) from Operating
Activities (3,306,997)

Cash and Cash Equivalents
7,248,075

Term Deposits
1
Capital (per 2010 Regulations)
3,000,000
5,976,166


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

Issue 22 3 May 2021

HOW THE RATIOS HAVE BEEN CALCULATED

CAPITAL RATIO

Capital


Gross capital 6,054,579

Less deductions 78,413

Total capital 5,976,166



Risk

Risk Weighted
Exposures Exposure Weight Exposures

NZ Registered Bank Deposits 10,248,075 20% 2,049,615
Residential mortgages:

LVR 70% and under 39,366,442 35% 13,778,255
LVR 70% - 80% 6,687,119 50% 3,343,560
Second mortgages 107,018 150% 160,527
Other loans with qualifying security over land
and buildings:

LVR 70% and under 7,614,612 100% 7,614,612

Other assets 425,431 350% 1,489,009
Deductions from capital 78,413

-

Total credit risk weighted exposures (A)

28,435,578

Total assets (B) 64,527,110

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

8,134,235


Total Exposures

36,569,813

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 22 3 May 2021

AGGREGATE EXPOSURE TO RELATED PARTIES

Loans and other on balance sheet exposures to related
parties (A) 10,635
Other related party exposures (B) Nil
Capital 5,976,166
(A + B) / C 0.18%

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


LIQUIDITY

Liquidity (A) 10,248,075

3 month expected loan receivables (B) 8,632,475

3 month expected gross deposit redemptions (C) 5,317,605

(A + B) / C 3.55 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.