General Capital ASM Presentations

Welcome to
General Capital Limited’s
Annual Shareholder
Meeting
1
3:00pm Friday 26 July 2024

Chairman
Rewi Bugo
2

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
3

1.1 Chairman’s Introduction
4

Brent KingRewi BugoPaul Zingel
General Capital Directors
Greg JamesMegan Glen
5
Anita Killeen

1.2 Apologies
6

7
1.3 Chairman’s
Address

General Capital’s dividend policy is to declare dividends at a
rate of at least 40% (interim and final) of its net profit after tax,
subject to maintaining a prudent level of capital for its needs.
Capital needs will vary from time to time depending on a range
of factors (including regulatory and credit rating requirements,
general economic conditions and current and expected
growth). The Directors reserve the right to amend the dividend
policy at any time.
General Capital Dividend
Policy
8

Every four General Capital shares held at 5:00 p.m. on 2
August 2024 will be consolidated into one share, with all
fractional entitlements rounded to the nearest whole number of
shares and a fractional entitlement to half a share being
rounded up.
General Capital Share
Consolidation
9

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 2024, including the
financial statements for that year and the Directors’ and auditor’s
reports to the shareholders.
1.4 Regular Business
10

Managing
Director:
Brent King
11

General Capital
Annual Report
31
st
March 2024

Key Points
•Total Assets up 20% to $163.3m
•Total Equity up 11% to $26.8m
•Revenue up 25% to $17.1m
•Net Profit Before Tax up 7% to $3.6m
•Net Profit After Tax up 17% to $2.6m
•Credit Rating reaffirmed as BB Stable
13

14
1
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
26.8
136.5
163.3
0
20
40
60
80
100
120
140
160
180
Equity ($mil)Total Liabilities ($mil)Total Assets ($mil)
General Capital Consolidated Balance Sheet
Mykco - 31 Mar. 2018GCL - 31 Mar. 2019GCL - 31 Mar. 2020GCL - 31 Mar. 2021
GCL - 31 Mar. 2022GCL - 31 Mar. 2023GCL - 31 Mar. 2024

15
64.5
71.3
79.1
90.7
99.2
111.9
122.9
129
127.7
129.2
133.2
145.7
155.4
162.4
58.5
65
72.2
83.1
89.4
101.5
111.7
116.7
111.7
112.5
116
127.8
136.6
142.6
6
6.3
6.9
7.6
9.8
10.4
11.2
12.3
16
16.7
17.2
17.9
18.8
19.8
0
20
40
60
80
100
120
140
160
180
Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23Mar-24Jun-24
Growth in General Finance Limited (subsidiary)
Total Assets ($mil)Total Liabilities ($mil)Equity ($mil)

16
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
NorthlandAucklandWaikatoBay of PlentyWellingtonOther NorthIslandSouthIslandOverseas
Secured Term Deposit by Location 2020 - 2024
20202021202220232024

17
29,383
1,903
3,904
0
46,751
4,607
0
3,100
69,125
8,692
0
3,101
92,917
12,384
2,107
3,099
117,505
14,912
0
1,725
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Residential housingResidential bare landResidential development land and housingCommercial property
Loan by Security Type 2020 - 2024
2020 2021 2022 2023 2024

18
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
NorthlandAucklandWaikatoBay of PlentyWellingtonOther North IslandCanterburyOtagoMarlborough
Loan by Location 2020 - 2024
20202021202220232024

19
Synthony Sponsorship

20
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 2025.”
21
1.4 Regular Business

22
1.4 Regular
Business
c) Resolution 2: Election of Director: Anita
Maria Killeen
To consider and, if thought fit, pass the following
ordinary resolution:
“That Anita Maria Killeen be elected as a
director of the Company.”

23
1.4 Regular
Business
c) Resolution 3: Re-election of Director:
Gregory Stephen James
To consider and, if thought fit, pass the following
ordinary resolution:
“That Gregory Stephen James, 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
24

25
Thank you for
attending
General Capital
Limited’s
Annual Shareholder
Meeting
25

---

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 2024 on the 27th of June
2024.
I am sure you have all had an opportunity to review the Report.

Slide 12

The General Capital Group started the 31/3/24 financial year with the country and the
world trying to understand what the post COVID markets would look like. The government
ended the Covid19 Protection framework in September 2022 lifted all Covid 19
restrictions on 15 August 2023. Wow it seems longer than that.

I think it is a tribute to New Zealand’s open economy that it was able to deal with the
Covid issues and then to bounce back into a “normal stage”.
Our last financial year commenced between the 2 dates mentioned and hence the effect
of the later stage of exiting Covid has a significant impact on the business environment
and our accounts.
The key takeaway is that General Capital makes most of its income from interest on loans
and our largest cost is interest expense. The massive increase in interest rates has
distorted the accounts year on year. Rates had dropped to low levels then due to the
steps to reign in inflation, they rocketed away. This makes Year on Year comparisons very
difficult.

We have done well this year but we should understand that the next few years will see
the reduction of interest rates and hence the accounts will be distorted in a different way.
Of course we will be focused on making real profits for shareholders.
Let’s deal it our results to 31/3/24.
Revenue was up to $17,171,443 a 25% up increase on the 2023 year.
Total assets reached $163,330,631, up 20% from the 2023 fiscal year, driven by an increase
in our loan portfolio due to new loans written.
Total liabilities increased to $136,519,214, up 22% from the 2023 fiscal year, driven by the
increase in deposits received from our investors.
Total Comprehensive Income of $2,558,648 and we achieved a record net profit after tax of
$2,633,161.
This was an increase of 17% over last year.
We are very pleased with this performance.
We had not placed any new capital in the year.
General Finance Limited Credit Rating was upgraded twice during the previous year from
BB- with stable outlook to BB stable. We have been advised this week that we have
retained the BB stable credit rating.

General Capital Consolidated Balance Sheet
Slide 14

As you can see from slide 14 the Group has been consistently strengthening its Balance
Sheet since its establishment in FY18.

Growth in General Finance Limited
Slide 15

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 16

General Finance has developed a significant business, offering secured term deposits to
the public. Slide 16 provides a useful insight into our term deposits by location. Overall,
most of the regions in NZ experienced growth in FY24. 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 17

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.

Loan by Location
Slide 18

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. In summary we have a
business that is growing strongly and that has a solid spread of investors and loans

The Next Stage
We are very pleased with the year to 31 March 2024. The start to the 2025 year was
stronger than last year, as of 30 June we are currently trading ahead of last year.
The property market has flattened and reduced in some areas. The current market is
patchy and looks soft, however we are working hard to make this another record year.

The major issues for New Zealand are ones that we should all be focusing on:

How can I pay our staff and our shareholders more money without putting our business at
risk?

This is a question.

New Zealand’s question is why is New Zealand’s productivity so poor?

We simply have too much time off.

We add extra holidays, extra sick leave, extra maternity leave, extra statutory Holidays etc.

How do we really expect to increase productivity.

My major concern is how can we generate more money to pay our staff more. The answer is
we simply must get a better output from each employee.

We simply must work harder and smarter.

Costs creeps into your business and consumes your profits.

Reducing Overhead Costs

An example is NZX.

General Capital was reverse listed over a shell named Mykco. Mykco was listed on the
NZAX.

Without any consultation with GenCap NZX decided that they would consolidate the NZAX
into the NZSX. GenCap would have to comply with significantly more rules and regulations,
and it would have less freedoms and more costs.

An example is previously we could place up to 25% of new capital.

Now we can only place 15% without going through an expensive and lengthy process.
Another example is we need more Directors we have more rules and restrictions than ever.

It is interesting to note the NZX is losing approximately 1 listing per month and gaining
virtually none.

We have seen a total destruction of the New Capital Market (NCM), The NZAX (up to 26
companies)

This may have made a few companies more compliant, but the cost has been ridiculous.

As responsible Directors we must look at the ability to reduce costs and to assess the benefit
that each cost brings us.

Realistically is it worth listing on the NZX now?

This is a question for our Directors to constantly review.

Currently we believe there is value, but the increased costs and the restrictions and delays
mean that not all directors agree with this.

NZX is a government sanctioned monopoly.

I say this openly can NZX do a better job for the listed companies and for the Financial
Markets in New Zealand? My view is it certainly can and they should.

Size

Shareholders will be aware that General Capital has been one of the fastest growing
companies on NZX and this is particularly impressive when you see it has always consistently
made profits.

We are proud of our performance but we have to do better so we can reward our
shareholders, Directors and staff.

We must continue to grow profitably.

The major issue is that we must take advantage of the new legislation.

The DTA and DCS offers us significant opportunities. The costs to date have been significant.

We are looking at ways we can gain advantage and increase scale.

We expect to be able to announce these as the year develops.

Community and Sponsorships

We are proud of our contribution to the community

• This year we have entered into a sponsorship with the Akarana Marine Sports
Charitable Trust. The facility we are in is fantastic. What is more fantastic is the work
the trust do to help people learn about the fantastic water we have around us.

• We will continue to support the trust and ensure that the kids and adults enjoy this
fantastic facility with its fantastic staff.

Synthony

We have sponsored many of the synthonies that David Higgins company Duco has
promoted. David does a fantastic job and people love the product, it is outstanding.
We are proud to be associated with David and the outstanding events.

We also sponsor sporting events such as the Kohimarama Tennis club, the Parnell cricket
Club (New Zealand’s cricket club of the year) and other events such as the Northshore
Veterans golf tournament.

We are trying to make a contribution to our community.

You will see we are seeking to control costs, invest in our community and to gain better
outcomes for our shareholders and staff.

Summary

The market is the market, we simply must understand it and take advantage of the
opportunities it presents.

We must continue to seek niches and develop products that the market wants.
We will continue to build on the strengths that we have created.

There are significant opportunities available to us.

We are determined to build the General Capital Group into a very significant financial
services group that we can all be proud.


Thank you to our shareholders who have supported us so well.

Thank you to our depositors who have provided the funds for us to lend.

Thank you to our directors who have shown strong governance and skill.

Thank you to our staff who have done the hard work to get growth in the deposits and
loans.

Thank you most of all to our Chairman and major shareholder Rewi Bugo.

He has supported and lead us from a small company to now being a business performing in
the top 20% of the listed shares in New Zealand. He has been fair and visionary. You can
see from his earlier announcements, he is working hard to grow the General Capital
business.

Rewi your leadership has been exemplary.

Everybody, thank you again for your support. Please keep supporting us and watching us
grow.

Please be safe and well, I look forward to our having a cup of tea with you shortly.

Thank you.

---

General Capital Limited Annual Shareholder Meeting 2024


Speech – Chairman of the Meeting, Rewi Bugo

1 Introduction

Good afternoon everybody.

It is 3:00pm and it is time to start the Annual Meeting of Shareholders 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 may need to use in the event of an emergency.

I introduce my fellow General Capital Directors:

• Paul Zingel (via telephone);
• Greg James;
• Megan Glen;
• Anita Killeen; and
• Mr. 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 Sixth Annual Meeting of
General Capital Limited.
I am advised that we have received 18,013,633 proxies representing 4.95% of the votes.

2 Apologies

There are no apologies

3 Attendees

We also have in attendance:

• The Chair of General Finance Ltd, Mr Don Hattaway and General Finance Board
members;
• General Capital’s auditors, Grant Thornton represented by Ryan Campbell;
• Representatives from Covenant, the General Finance trustee; and
• General Capital and General Finance Staff including Nick Pimenov, 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.

I advise:

• 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
Wednesday 24 July 2024 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 not,
one the Computershare representatives can remedy this 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
Chair’s address.

6 Chair’s Address

Good afternoon Everyone,

Thank you to shareholders, directors of General Finance and General Capital boards, especially
our new director Anita Killeen, 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. The
Board is extremely satisfied where the group is with profits, the pace of growth and our
increasingly healthy position in the market.

This progress has been made despite a challenging interest rate environment, a technical
recession, tumultuous world events, and amidst mounting regulation and an evolving legal
framework for the NBDT industry.

The group has been on the lookout for acquisition opportunities and has pursued a number to
due diligence stages but, to date, values for such assets remain too high for us to consider.

Dividend Policy

As signalled last year, and given the consistent and strong profitability of the Group, the Board
has been actively discussing the payment of a dividend in the near term. The Board has adopted
a Dividend Policy which is on the screen. [read dividend policy]. Whilst no decision has been
made on the specific actual payment of a dividend the Board will give consideration to this, in
accordance with the policy, prior to releasing the half-year results in November.

Consolidation

After due consideration the Board has also decided to implement a share consolidation on a
one-for-four basis. Whilst this is a purely technical change it will have the effect of moving the
share price from the current approximately 8c to approximately 32c based on today’s share
price. The Board feels that this better positions the share price as we move forward in the next
stage of our growth. The consolidation should be completed by 2 August 2024 with updated
share statements going out in the week of 12 August 2024. At the end of the consolidation the
total number of issued shares will be reduced from 363,574,975 to 90,893,743.

Looking Ahead

As the Reserve Bank of New Zealand signals the possibility of monetary policy loosening, the
country appears to be taking a deep sigh of relief but the easing of the economic pain affecting
so many may not be as rapid as its infliction. My own sense is that the hangover of the
pandemic-induced inefficiencies remain, and much of the developed world remains
disillusioned about the hard road ahead.

A return to “old fashioned” thinking about work, productivity and innovation is needed – a
hallmark of the Kiwi character I knew and respected 30 years ago needs to be restored – that

is to “muck-in” and earn a fair day’s pay for a fair day’s work. To avoid self-induced distractions
and just “get on with it”. To focus on what matters which is, for us, to build a strong, ethical
and sustainable business – no frills if need be but one that eventually makes a difference to all
our stakeholders – shareholders, depositors, borrowers and staff.

As a group we will strive to continue the growth we have achieved to date – none of which
would have been possible without the continuous support from you, our shareholders for which
we thank you very much.

7. Resolutions

I will now move to the Resolutions before the Meeting. I will be exercising any discretionary
proxies conferred on the Chair. As noted in the Notice of Meeting, I will be voting any
undirected proxies in favour of the resolutions.

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

The Board has unanimously recommended that you vote in favour of all of today’s
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.

Thank you, Brent.

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 2025.”

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 Anita Maria Killeen be elected as a director of the Company.”

Anita was appointed by the Board on 1 February 2024, and in accordance with listing rule
2.7.1 Anita is required to present herself for re-election at the Annual Meeting. Anita’s
profile is included in section 3.2 of the Notice of Meeting explanatory notes.

As previously stated the Board unanimously support Anita’s election.
Anita do you briefly want to speak to the resolution. [Anita to speak]
Thank you Anita

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.

Moving on to Resolution 3.

“That Gregory Stephen James, 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. Greg James was last re-elected in 2022 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. Greg’s profile is included in section 3.3 of the
Notice of Meeting explanatory notes.

As previously stated, the Board unanimously supports Greg’s re-election.
Greg do you briefly want to speak to the resolution. [Greg to speak]
Thank you Greg

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 3
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.