General Capital (GEN:NZ) Annual Meeting Presentations

Welcome to
General Capital Limited’s
Annual Shareholder
Meeting
1
3:00pm Thursday 24 August 2023

Chairman of the
meeting:
Rewi Bugo
2

Brent KingRewi BugoPaul Zingel
General Capital Directors
Gregory JamesMegan Glen
3

Agenda
1.1 Chairman’s Introduction
1.2 Apologies
1.3 Chairman’s Address
1.4 Regular Business
1.5 General Business and Shareholder Discussion
1.6 Close
4

1.1 Chairman’s Introduction
5

1.2 Apologies
6

7
1.3 Chairman’s
Address

a) Consideration and Discussion of Annual Report.
The meeting will receive, consider and discuss the Annual Report of the Company for the year
ended 31 March 2023, including the financial statements for that year and the directors’ and
auditor’s reports to the shareholders.
1.4 Regular Business
8

Managing
Director:
Brent King
9

Key Points
•Total Assets up 32% to $136.1m
•Total Equity up 79% to $24.3m
•Revenue up 71% to $13.7m
•Net Profit Before Tax up 77% to $3.3m
•Net Profit After Tax up 68% to $2.3m
• Results include a $537k of goodwill write off
•Two complete share placements at year end
•Credit Rating Upgraded twice to BB Stable outlook
10

11
1.0
0.1
1.1
8.8
15.2
23.9
9.4
41.8
51.2
9.5
58.6
68.2
13.5
89.4
102.9
24.3
111.8
136.1
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Equity ($mil)Total Liabilities ($mil)Total Assets ($mil)
General Capital Consolidated Balance Sheet
Mykco - 31 March 2018GCL - 31 March 2019GCL - 31 March 2020GCL - 31 March 2021GCL - 31 March 2022GCL - 31 March 2023

47.7
47.1
51.4
61.0
64.5
71.3
79.1
90.7
99.2
111.9
122.9
129.0
127.7
41.8
41.2
45.4
55.2
58.5
65.0
72.2
83.1
89.4
101.5
111.7
116.7
111.7
5.8
5.9
6.0
5.8
6.1
6.3
6.9
7.6
9.7
10.4
11.2
12.2
16.0
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23
Growth in General Finance Limited (subsidiary)
Total Assets ($m)Total Liabilities ($m)Equity ($m)
12

13
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
NorthlandAucklandWaikatoBay of PlentyWellingtonOther North
Island
South IslandOverseas
$,000
Secured Term Deposit by Location 2020 - 2023
2020202120222023

14
29,383
1,903
3,904
46,751
4,607
3,100
69,125
8,692
3,101
92,917
12,384
2,107
3,099
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Residential housingResidential bare landResidential development land and
housing
Commercial property
$,000
Loan by Security Type 2020 - 2023
2020202120222023

15
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
NorthlandAucklandWaikatoBay of PlentyWellingtonOther North
Island
CanterburyOtagoMarlborough
$,000
Loan by Location 2020 - 2023
2020202120222023

16
Synthony Sponsorship

17
Synthony in the Snow

b) Resolution 1: Auditors fees and expenses
To record that Company’s auditors, Grant Thornton New Zealand Audit Limited, 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 2024.”
18
1.4 Regular Business

19
1.4 Regular
Business
c) Resolution 2: Re-election of Director: Brent
Douglas King
To consider and, if thought fit, pass the following
ordinaryresolution:
“That Brent Douglas King, who retires at the
Annual Meeting and is eligible for reelection, be
elected as a director of the Company.”

To consider any other matters that may be brought properly before the Meeting.
1.5 General Business and
Shareholder Discussion
20

21
Thank you for
attending
General Capital
Limited’s
Annual Shareholder
Meeting
21

---

General Capital Limited Annual Shareholder Meeting

24 August 2023

Speech – Chairman of the Meeting, Rewi Bugo

1. Introduction

Good afternoon everybody.

It is 3:00pm and it is time to start the Annual Shareholders Meeting of
General Capital Limited.

My name is Rewi Bugo, Chairman of General Capital and I will be chairing the
meeting today.

I would ask that all mobile phones be turned off or to silent and that you please
note the exits which we will need to use in the event of an emergency.

I would also like to introduce my fellow General Capital Directors:

• Paul Zingel;
• Greg James;
• Megan Glen; and
• Brent King our Managing Director.
I am advised that:
 the notice of meeting has been in shareholders hands for the required
period;
 the Annual Report has been available to Shareholders for the required
period;
 we have a quorum of shareholders present;
and thus we have a correctly constituted meeting.
I therefore declare the meeting open.
It is my pleasure to formally welcome you all here today to the Fifth Annual
Meeting of General Capital Limited.
In addition to those attending today, 19 shareholders, holding a total of
4,493,378 shares have appointed proxies. The appointed proxies represent 1.24%
of all shares.

In my capacity as Chairman of the meeting I hold proxies for 11 shareholders,
representing 4,067,779 shares or 1.12% of all shares. As noted in the Notice of
Meeting, I will be voting any undirected proxies in favour of resolutions 1 and
2.


2. Apologies

We have apologies from Rob Hart, a director of General Finance and an apology
from Greg King, a shareholder in General Capital. Covenant, the trustee who
overseas General Finance, is also unable to be represented here today.

Are there any others?
3. Attendees

We also have in attendance:

• The Chair of General Finance Ltd, Mr Don Hattaway and directors Greg
Pearce and Anton Douglas;
• General Capital’s auditors, Grant Thornton represented by Ryan
Campbell;
• Gerard Dale from our external lawyers Dentons Kensington Swan; and
• General Capital and General Finance Staff including Victor Pliev, Group CFO
and Richard McIntosh, Group Corporate Counsel.

We are very pleased with the turnout, and we look forward to meeting with you
all after the meeting. We hope to have a good chance to meet you all and discuss
the progress of the Group.

4. The Meeting

In the interests of a full and open discussion, the Directors of General Capital
have invited 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;
o Wait to be acknowledged by the Chair; and

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.
As regards voting, all shareholders registered on the share register as at 5pm
on Tuesday 22 August 2023 are, subject to any specific voting restrictions,
entitled to vote.

Rule 6.1 of the NZX Listing Rules requires all voting to be conducted by poll.
Accordingly, if you have not already appointed a proxy, you can vote by
completing a voting form and providing it to the Computershare
representatives at any time up to the conclusion of the formal meeting. All
shareholders should have received a voting paper at the door but if you don’t
have one the Computershare representatives can sort that out for you.

Results of the voting will be available after the conclusion of the meeting and
will be publicly notified by way of announcement to the NZX.

5 Agenda

I am sure you have all read the Notice of Meeting and the attachments, so we
will take these as read.

We have already dealt with items 1.1 and 1.2 on the Agenda, which brings
us to the Chairs address.

6 Chair’s Address

Good afternoon Everyone,
Thank you to shareholders, directors of General Finance and General Capital
boards, especially our new directors Megan Glen and Anton Douglas, invited
guests, Computershare team members and staff of our group for taking the time
to be here.
Our group’s financial performance will be covered by our Managing Director in
detail later. I am pleased to say our Board is extremely satisfied where the group
is with profits, (organic) growth and our position in the market with appropriate
cash in hand to leverage any opportunities that present themselves.

The group is poised to take advantage of inorganic growth opportunities
following a capital raise in February from API Limited and Borneo Capital Limited.
The best use of these funds will be determined by our Board and Management.

Growing a business is not without its challenges and we are acutely aware of
these as the world emerged from the persistent jaws of the Covid-19 pandemic.
Human resources limitations, interest rate changes, dipping property prices and
heightened regulation of varying utility made 2022 an interesting year.
The current climate suggests an inflexion point in external factors has been
reached and, along with our recently strengthened team, the group feels ready
to bring us to “the next stage” to which we aspire, namely $250m of total assets.
Reaching this goal should be a measured march, prudence always paramount
and undue risk-taking not an option.
In moving forward, we remember those who supported us strongly in the past.
We record our thanks to former directors Lyn Lim and Simon McArley for their
service and who served the group since the reverse listing, contributing
significantly during our early growth period.
Finally, in 2024, after three years of profitability and subject to shareholder
approval, the group should contemplate a dividend payment to properly reward
our shareholders for their support and loyalty.
Thank you.

7. Resolutions

I will now move to the Resolutions before the Meeting.

All resolutions are ordinary resolutions, requiring a 50% majority of those
entitled to vote and voting to be caried.

The Board has unanimously recommended that you vote in favour of all todays
resolutions.
8 . Regular Business

Moving on to agenda item 1.4 - Regular Business.

Firstly I turn to considerations and discussion on the Annual Report.
I now ask our Managing Director to speak to the report.
Over to you Brent.
[BK Presentation]
Thank you, Brent - very informative.

Do we have any questions for Brent on the Annual Report, financial statements
or other matters discussed by Mr King?

{Allow 30 seconds for first question}

Resolution 1

Thanks Everyone. Moving on to Resolution 1.

The resolution we have before us is:

“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 2024.”

I move the motion.
Do we have a seconder? Thank you


I now open the matter for discussion. Are there any questions from
Shareholders?

{Allow 30 seconds for first question}

As there are no [further] questions, I remind you to cast your vote on
Resolution 1 now or prior to the close of the meeting if you haven’t done
so already.

I note that all shareholders are entitled to vote on this resolution.

Resolution 2

Moving on to Resolution 2.

“That Brent Douglas King, who retires at the Annual Meeting and is eligible for
re -election, be elected as a director of the Company.”

Under NZX Listing Rule 2.7.1, no director may hold office (without re-
election) past the third annual meeting following appointment or 3 years,
whichever is the longest. Such directors are eligible for re-election. Brent
King was last re-elected in 2021 but noting that there are no directors up for
election by rotation he has decided to retire at the annual shareholders
meeting and being eligible, seeks re-election. Brent’s profile is included in
section 3.2 of the Notice of Meeting explanatory notes.

I would note that the Board discussed the merits of having the Chief Executive
Officer as a director and we will continue to assess this going forward but as
previously stated the Board unanimously support Brent’s re-election.

Brent do you briefly want to speak to the resolution. [Brent to speak]
Thank you Brent

I will now move the resolution, do I have a seconder?
Thank you
Do we have any questions or comments from shareholders?

{Allow 30 seconds for first question}

As there are no [further questions], I remind you to cast your vote on
Resolution 2 now or prior to the close of the meeting if you haven’t done
so already.

All shareholders are entitled to vote on this resolution.

9 General Business

That brings us to General Business – item 1.5 on the Agenda.

Do we have any questions, comments, or items of general business from
shareholders?

{Allow 30 seconds for any general business or questions}

10 Closing

If there is nothing [more], that concludes the formalities of the meeting.

In a couple of minutes, we will close the voting system. Please ensure that you
have cast your vote on all resolutions.

I wish to thank you all for your attendance. I ask you now to join the Directors
for refreshments.

On behalf of the Directors, Management and staff thank you very much for
your support and look forward to seeing you all next year.

I declare the meeting closed.

---

Managing Director’s Address to
General Capital Ltd.’s ASM 24 August 2023


Thank you, Chairman.

Good afternoon, everyone. Thank you for taking the time to attend our shareholder meeting today.
We released our Annual Report to 31st March 2023 on the 27
th
of June 2023.
I am sure you have all had an opportunity to review the Report.
[Slide 10]
The General Capital Group started the financial year with the turmoil of the end of the COVID lockdowns.
The year was volatile for most participants in the financial sector.
We are pleased with how we performed during the period and how we finished the year in a very strong
financial position.
This has been an outstanding year for the Group.
Revenue was 71% higher than the previous year which resulted in net profit after tax of $2.3m for the
year ended 31 March 2023, the strongest result since the Group was listed in 2018.
This was also after a goodwill impairment of $537k was recognised in the 2023 financial year.
This of course was a non-cash expense.
The Groups total assets increased a further 32% since March 2022.
The Group completed two share placements raising $8.7m of capital in February 2023.
$3m of that has been utilised for the growth of General Finance Limited with the balance kept at the
parent level.
General Finance Limited Credit Rating was upgraded twice during the year from BB- with stable outlook
to BB stable.

General Capital Consolidated Balance Sheet
[Slide 11]

As you can see from slide 11 the Group has been consistently strengthening its Balance Sheet since
its establishment in FY18.

Growth in General Finance Limited
[Slide 12]

General Finance is our largest trading subsidiary and income earner in the Group.
It has the largest capital, assets and liabilities.

It holds the most cash of any company in the Group.
We are very pleased with the development of General Finance over the last four years and particularly
over the last year.

Secured Term Deposits by Location 2020 - 2023
[Slide 13]

General Finance has developed a very significant business, offering secured term deposits to the public
seeking fixed term deposits.

Slide 13 provides a useful insight into our term deposits by location.

Overall, most of the regions in NZ experienced growth in FY23.

Auckland is the biggest market for us and it was good to see a healthy jump in the South Island.


Loan by Security Type
[slide 14]

General Finance lends to borrowers seeking short term loans secured by first registered mortgages over
residential or commercial property.

You can see from the graph that $93m of the loan book is lent to residential housing.

The maximum exposure as at 31 March 2023 was 67.2% Loan to Value Ratio (LVR).

Loan by Location
[slide 15]

Although we have loans across New Zealand the largest group by far is centred in Auckland. The market
is deeper in Auckland and we have the highest level of comfort of being able to realise the security over
which our loan is secured.
Sponsorships
[Slides 16 and 17]
The Group has sponsored several Synthony events around New Zealand. The benefits we gain are
considerable, which helps with promotion of our brand to the wider market.
Conclusion
Fellow shareholders.

We are very pleased with the year to 31st March 2023.
The start to the 2024 year is less buoyant than last year, however we are currently trading ahead of
last year.
The Next Stage
A key factor for General Finance has been the passing of the Deposit Takers Act in July of this year.
This will create a series of opportunities for us as well as some costs.
The major benefit is that we have an opportunity to be covered by the Depositor Compensation Scheme.
This is the scheme that if Depositor loses money they will be compensated by the fund up to $100,000
per investor.
We believe this will significantly help grow further confidence in the sector whereby the effective
security is backed by the Fund. The Banks and the Finance companies will have the same security for
the first $100,000.
We expect that there will be a significant number of new depositors looking to take advantage of this.
We do not expect, nor want, investors to put all their funds with us. We do expect a considerable
number of investors to put at least $100,000 with us.
This is very positive for growth in the sector.
There is always a negative.
We expect to have to pay a levy for this benefit. Currently we do not know what the cost that will be.
This cost will be worked out by the RBNZ.
Those people are not known for their generosity so we must consider the next stage very carefully.
Ladies and Gentlemen. We are very well placed for the future with strong cashflow, capital available for
acquisition, a stronger management team and a larger business than last year.
I wanted to personally thank you for the support that you have shown us as we have built the business.
We are very proud of the business and what we have achieved.
We want to thank all of our new shareholders who have joined us over the year. I want to particularly
thank the API team, Megan, Anton and Michael for their contributions.
Everybody, we are now very well placed to seize opportunities that the market will present to us.

Thank you for your support.
Back to you Chairman.