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


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 31 December 2021 to the
Disclose Register today.

The attached unaudited quarterly report shows that General Finance’s business has continued to grow
with the achievement of new record levels in its total assets and Net Profit After Tax (NPAT).
 General Finance’s total assets exceeded $90 million for the first time at 31 December 2021,
up 14.6% from 30 September 2021 and 40.5% from 31 March 2021.
 General Finance’s NPAT for the quarter ended 31 December 2021 (Q3) of $444k was a new
record quarterly NPAT for the subsidiary, 37.5% higher than the quarter ended 30 September
2021 (Q2).
 General Finance’s YTD NPAT for the 9 months ended 31 December 2021 was $985k,
significantly higher than full year NPAT in the year ended 31 March 2021 of $223k.
 General Finance’s capital ratio was 15.68% at 31 December 2021, which is nearly double the
8% minimum requirement.

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.

“It has been another very positive quarter for General Finance. 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 also 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

1 February 2022

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Issue 25 1 February 2022

GENERAL FINANCE LIMITED
Quarterly report as at 31 December 2021


KEY RATIOS



Capital Ratio


31 December 2021


Our capital ratio calculated in accordance
with the 2010 Regulations*

15.68%

Minimum capital ratio required by our
Trust Deed if the issuer has a credit rating

8%


Minimum capital ratio that must be
included in the trust deed under reg 8(2) of
the 2010 Regulations* if the issuer has a
credit rating

8%


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.




Related Party Exposures


31 December 2021


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

1.33% of capital

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 25 1 February 2022




Liquidity

31 December 2021


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

7.88 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.






SELECTED FINANCIAL INFORMATION

Quarter to
31 December
2021

Total Assets
90,657,290

Total Liabilities
83,066,001

Net Profit / (Loss) After Tax
443,578

Net Cash Inflow from Operating Activities
3,537,443

Cash and Cash Equivalents
17,320,690

Term Deposits
1
Capital (per 2010 Regulations)
2,350,000
7,506,639


1
New Zealand Registered Bank deposits with original term of greater than 183 days.

Issue 25 1 February 2022

HOW THE RATIOS HAVE BEEN CALCULATED


CAPITAL RATIO

Position at 31 December 2021



Capital


Gross capital 7,591,289

Less deductions 84,650

Total capital 7,506,639



Risk

Risk Weighted
Exposures Exposure Weight Exposures

NZ Registered Bank Deposits 19,670,690 20% 3,934,138
Residential mortgages:

LVR 70% and under 59,713,018 35% 20,899,556
Other loans with qualifying security over land
and buildings:

LVR 70% and under 10,905,190 100% 10,905,190

Other assets 283,742 350% 993,097
Deductions from capital 84,650

-

Total credit risk weighted exposures (A)

36,731,981

Total assets (B) 90,657,290

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

11,146,561


Total Exposures

47,878,542

Capital Ratio

15.68%
(being Total Capital/Total Exposures)


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

Issue 25 1 February 2022

AGGREGATE EXPOSURE TO RELATED PARTIES

Loans and other on balance sheet exposures to related
parties (A) 100,000
Other related party exposures (B) Nil
Capital 7,506,739
(A + B) / C 1.33%

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


LIQUIDITY

Liquidity (A) 19,670,690

3 month expected loan receivables (B) 20,150,273

3 month expected gross deposit redemptions (C) 5,050,921

(A + B) / C 7.88 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.