Monday, 22 March 2010

I would like to take this opportunity to thank you for your continued support and update you on
recent events.

Much has happened in the last 18 months. The global financial crisis has challenged fundamentals,
shaken confidence and few organisations have emerged totally unscathed. Many, particularly in
the finance sector, have ceased to operate or have reduced their activities.

Throughout this period, South Canterbury Finance has is accepted, investors will have the benefit of the Extended
continued to provide attractive returns for investors and Guarantee from 12 October 2010 through to 31 December
without fail has always repaid funds when due on maturity. In 2011, when the scheme expires.
return, the Company has been rewarded with the confidence
A decision from Treasury on our application for participation
of you and 40,000 others who have remained steadfast
in the Extended Retail Deposit Guarantee scheme is expected
supporters. Your loyalty is humbling and has contributed to
shortly. Regardless, all eligible existing, and new, depositors
the success of the Company over its 84 years history.
and investors continue to have the benefit of the current
I want to assure you that the Company is soundly based and Retail Deposit Guarantee scheme through to 12 October 2010.
well positioned to meet the challenges ahead. Recently,
In a further development, Sandy Maier was appointed Chief
Southbury Corporation, which is indirectly controlled by me
Executive Officer in late December 2009 and together with his
and my wife Jean, announced it had injected new equity
new senior management team has made significant progress
into South Canterbury Finance totalling $152.5 million. This
with the restructuring of the Group’s financial affairs and
followed several other measures in recent months including
overseeing of the Company’s loan book. Sandy brings to the
the appointment of new independent directors, and new
Company 35 years experience in corporate restructuring and
senior management with the skills to meet the demands of
has quickly forged a strong working relationship with the
the changed environment.
Board and company staff.
The capital injection was achieved when Southbury
I acknowledge that the recent financial performance of the
Corporation sold its 100 per cent shareholding in Helicopters
Company has been disappointing and this has adversely
(NZ) Limited and 64 per cent of the shares of Scales
affected investor confidence but I remain totally committed
Corporation Limited to South Canterbury Finance.
to ensuring a successful future for South Canterbury Finance.
Helicopters (NZ) and Scales Corporation are substantial and I am satisfied that we are well on the way to a totally
profitable companies with which I have had a long and fresh approach to the future and the restoration of South
personal association. In the year ended 30 June 2009 the Canterbury Finance as a leader in the sector. This may require
combined results for Helicopters (NZ) and Scales Corporation the raising of further capital by the Company and possible
returned a net profit after tax of $29.8 million. The earnings sale of non-core assets to ensure compliance with the new
contributions of these two successful companies are now regulatory environment.
part of South Canterbury Finance and substantially change
Once again, thank you for your ongoing support. We will
the earnings profile for the benefit of all stakeholders.
continue to keep you informed on our progress as new
As might be expected, the Government and the Reserve information becomes available.
Bank of New Zealand are introducing new regulatory
Yours Sincerely
requirements for the finance sector. In addition, an Extended
Retail Deposit Guarantee scheme has been introduced
to replace the existing Retail Deposit Guarantee scheme
which expires on 12 October 2010. The Company meets the
eligibility criteria for participation in the Extended Retail
Deposit Guarantee scheme and believes that it has taken Allan Hubbard
all the steps necessary to be accepted into the scheme. If it Chairman

SOUTH CANTERBURY FINANCE LIMITED – TIMARU HEAD OFFICE 7 Sophia Street, PO Box 125, Timaru 7940
Freephone 0800 808 117 Phone 03 688 8117 Fax 03 684 9550 Email enquiry@scf.co.nz www.scf.co.nz