Slide 1: Results for the Year ended 31 March 2012
Big Yellow Group PLC Results for the Year ended 31 March 2012 1 22 May 2012
Slide 2: Highlights
Highlights ● Occupancy growth of 328,000 sq ft across all stores (2011: growth of 215,000 sq ft) ● The 51 wholly owned stores open at 1 April 2011 have grown in occupancy from 59.3% to 64.9% at 31 March 2012 ● Store revenue for the year up 8% to £64.3 million (2011: £59.6 million) ● Store revenue fo
Slide 3: Highlights
Highlights ● Adjusted profit before tax of £23.6 million up 17% (2011: £20.2 million) ● Adjusted EPRA earnings per share up 18% to 18.22 pence (2011: 15.49 pence) ● Cash inflows from operating activities (after interest) increased by 17% to £27.4 million (2011: £23.5 million) ● Group net debt increa
Slide 4: Financing Strategy
Financing Strategy • Refinancing − Groundbreaking £100 million, 15 year loan secured from Aviva on a portfolio of 15 stores at a fixed cost of 4.9% − Next stage to achieve medium term 6-7 year loan of £50-£60m with 3-4 year senior bank debt at £150-£160m in 2012 • Debt Reduction − Target pre-interes
Slide 5: Dividend
Dividend • Total declared dividend of 10p per share, Property Income Dividend (PID) element of 9p • Progressive dividend for next couple of years • An objective of an 80% distribution of eps 2014-15 Current Dividend Cover Year to 31 March 2012 On EPRA earnings per share 1.8x On Operating cash flow a
Slide 6: Quality of Earnings
Quality of Earnings • Operating branded store platform - not a recycler of assets • Own assets freehold for high operating margins and operational advantage • “Evergreen” income − 36,000 customers (32,000 in wholly owned stores) − Average length of stay for existing customers of 19 months − 37% of c
Slide 7: Resilient Performance
Resilient Performance Year to Year to % March 2012 March 2008 Total Store Revenue (£000) 64,273 55,159 17% Total Occupied Space (sq ft) 2,458,000 1,850,000 33% Free Cash Flow (£000) 27,388 14,388 90% Adjusted EPS 18.22p 11.72p 55% Dividend 10p 9.5p 5% 7
Slide 8: Portfolio Summary
Portfolio Summary March March March March March March Wholly Owned Stores 2012 2012 2012 2011 2011 2011 Established Lease-Up Total Established Lease-Up Total Number of stores 32 21 53 32 19 51 At 31 March: Total capacity (sq ft) 1,941,000 1,417,000 3,358,000 1,941,000 1,288,000 3,229,000 Occupied sp
Slide 9: Established store REVPAF vs month rolling GDP
Established store REVPAF vs 12 month rolling GDP nm 6 2.0 12 month rolling GDP % “REVPAFE 0.0 —— REVPAF -2,0 ——Annual GOP growth x
Slide 10: Established store REVPAF vs house purchase mortgage approvals
REVPAF(E} Established store REVPAF vs house purchase mortgage approvals 500,000 450,000 400,000 ___REVPAF —— Quarterly 350,000 ———19year average 300,000 Quarterly mortgage approvals 15 + 250,000 200,000 150,000 100,000
Slide 11: Financial Review
Financial Review 11 11
Slide 12: Consolidated Income Statement
Consolidated Income Statement Year ended: 31.03.12 31.03.11 £m £m Revenue 65.7 61.9 Cost of Sales (23.5) (22.7) Admin Expenses (7.1) (7.1) Underlying Operating Profit 35.1 32.1 Revaluation Deficit (51.4) (16.0) Gains on Surplus Land 0.5 0.1 Net Finance Costs (11.2) (11.3) Fair Value Movement on Deri
Slide 13: Per Store Analysis
Per Store Analysis All Lease-up established stores stores Number of Stores 32 21 Average Store Capacity 60,656 67,476 Closing sq ft occupied per store 45,063 32,905 % Occupancy 74.3% 48.8% Revenue per store £1,369,000 £975,000 EBITDA per store £887,000 £589,000 EBITDA margin 65% 60% • The average UK
Slide 14: Movement in Adjusted Profit Before Tax
Movement in Adjusted Profit Before Tax £m Adjusted PBT - year ended 31 March 2011 20.2 Gross profit increase 3.0 Increase in net interest payable (0.1) Increase in capitalised interest 0.2 Reduction in share of BYLP recurring loss 0.3 Adjusted PBT - year ended 31 March 2012 23.6 14
Slide 15: Proforma Cost of Funding Post Aviva Loan
Proforma Cost of Funding Post Aviva Loan Amount of Debt Weighted Amount of Debt Weighted Average At March 2011 Average Interest Cost Interest Cost At March 2011 £m % £m % Aviva Debt 100 4.9 - - Fixed Rate Debt 90 4.1 190 4.5 Floating Debt 100 1.9 85 1.7 Total Debt 290 3.7 275 3.6 15
Slide 16: Cashflow and Net Debt Movement
Cashflow and Net Debt Movement Year ended: Year ended: 31.03.12 31.03.11 £m £m Opening Net Debt (266.0) (269.4) Cash from Operations 38.9 34.9 Interest (Net) (11.5) (11.4) Free Cash Flow 27.4 23.5 Dividends Paid (12.2) (10.3) Total Capital Expenditure (23.6) (13.3) Surplus Land Sales 5.4 4.5 Investm
Slide 17: Valuation Summary of Open Stores
Valuation Summary of Open Stores £m £m Open store valuations pre-impact of VAT 773.0 Revaluation movement pre-impact of VAT (2.9) Open store valuations assuming implementation of VAT 726.4 Revaluation movement assuming implementation of VAT (46.6) Total revaluation movement in year for the open stor
Slide 18: Movement in Adjusted EPRA NAV per Share
Movement in Adjusted EPRA NAV per Share £m EPRA Adjusted NAV Per Share Adjusted NAV at 31 March 2011 591.4 449.8 Revaluation Movements (including share of BYLP) (51.9) (39.7) Purchaser’s Costs Adjustment (net movement) (2.0) (1.5) Adjusted Profit 23.6 18.1 Dividend (12.2) (9.3) Share Buyback (3.7) 2
Slide 19: Banking Covenants
Banking Covenants • The Group was comfortably in compliance with its banking covenants at 31 March 2012: At Covenant 31 March 2012 Minimum income cover on Tranche B properties 1.5 x 3.67x Minimum net assets (excluding goodwill) £250 million £493.1 million Maximum gross loan to net assets gearing 1.3
Slide 20: Group Capital Structure
Group Capital Structure Conservative balance sheet with strong income cover 31.03.12 31.03.11 Net Debt / Gross Property Assets 35% 33% Net Debt / Adjusted Net Assets 49% 45% Group EBITDA cover for the period 3.1x 2.8x • Gearing would have remained broadly unchanged from March 2011 without the impact
Slide 21: Portfolio Summary - BYLP
Portfolio Summary - BYLP March March 2012 2011 Number of stores 12 11 As at 31 March: Total capacity (sq ft) 743,000 683,000 Occupied space (sq ft) 325,000 215,000 Percentage occupied 43.7% 31.5% Net rent per sq ft £18.12 £18.70 Annualised revenue (£000) 7,308 5,066 For the year: REVPAF £9.11 £6.64
Slide 22: Big Yellow Limited Partnership
Big Yellow Limited Partnership Big Yellow 33.3% Interest £000 Investment at 1 April 2011 14,931 Subscription for capital and advances 1,167 Share of operating profit 601 Net interest payable and fair value of derivatives (723) Loss on revaluation (480) Share of Partnership net assets at 31 March 201
Slide 23: Stores and Operations
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Slide 24: VAT
VAT • Proposed change to make self storage standard rated from 1 October 2012 • Joint representation submitted with Safestore to HMRC and Treasury. BPF and Self Storage Association also challenging • All major competitors affected; 70% of industry • Assuming it does take effect, our actions: − Busin
Slide 25: Pricing Strategy
Pricing Strategy • Industry now fully transparent with pricing online • Existing customer price increases to continue on a rolling basis • Standard offer across all stores − 50% off for up to 8 weeks, varies with store occupancy • Dynamic Pricing – positive and negative • Focus on REVPAF continues •
Slide 26: Improved Year-on-Year Move-in Activity
Improved Year-on-Year Move-in Activity Year ended Year ended Increase Year ended 31 March 31 March 31 March Move-ins 2012 2011 2010 April to June 11,081 10,991 1% 9,357 July to September 12,661 11,981 6% 9,919 October to December 10,195 8,845 15% 8,042 January to March 10,149 8,685 17% 8,279 Total 4
Slide 27: Chiswick – 75,000 sq ft
Chiswick — 75,000 sq ft SELF STORAGE | ll 27
Slide 28: New Cross – 60,000 sq ft; Stockport - 60,000 sq ft
New Cross – 60,000 sq ft Stockport - 60,000 sq ft 28
Slide 29: Big Yellow Self Storage Users
Big Yellow Self Storage Users Overall Occupied Space at 31 March 2012 Demand Profile of Move-ins - April to March 2012 April to March 2011 Moving - owned sector 37.97% Moving - rental sector 18.57% Student storage 6.30% Decluttering 11.03% Business storage 8.65% Other 6.54% Home improvements 5.90% T
Slide 30: Marketing and the Brand
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Slide 31: Better Targeting and Website Performance are Reducing Cost per Acquisition
Better Targeting and Website Performance are Reducing Cost per Acquisition • Competitive advantage from top positions in Google’s natural and paid for listings. Search accounts for 70% of web traffic • Google searches for Self Storage are up 20% year on year • Big Yellow continues to capture largest
Slide 32: Big Yellow Mobile
Big Yellow Mobile • 15% of all searches are now made on a mobile device* and 14% of self storage search queries ** • Big Yellow’s mobile site launched in October 2011 • Mobile friendly site providing store locations, customer reviews and real time quotes • The mobile site currently accounts for 23%
Slide 33: Growing the Business Customer Base
Growing the Business Customer Base • Dedicated business web section • Established organic search listings on page 1 of Google for most popular business storage related terms • Increased investment in paid search for business terms • Banners advertising “business and home storage” on store exteriors
Slide 34: Customer Reviews Provide Real Time Insight and Influence New Prospect Behaviour
Customer Reviews Provide Real Time Insight and Influence New Prospect Behaviour 6,400 reviews Average customer service rating is 4.7 out of 5 34
Slide 35: Innovative Marketing
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Slide 36: National Accounts
National Accounts • Helping businesses to store at multiple locations • Easy set up for new recruits and new locations • One contract, one invoice, one point of contact • We take deliveries, saving the clients’ need to be on site 36
Slide 37: The Big Yellow Customer Support Team
The Big Yellow Customer Support Team • Customer Support Centre open Sundays and late weekday evenings for customer convenience • Over the year to 31 March 2012 calls are up 28% year on year • Customer Support Team make 1 in every 6 reservations for the business • Continuing investment in call handli
Slide 38: Property
Property 38
Slide 39: Property Summary
Property Summary • Since September 2007, we have opened 23 stores, 12 in the wholly owned Group and 11 in the Partnership, adding 1.6m sq ft of self storage capacity • 71% of total built-out capacity within the M25 in the wholly owned Group • 73% of revenue from London, 89% from London and the South
Slide 40: Valuations
Valuations 32 21 All 53 Established Lease-Up wholly store store owned portfolio portfolio stores Valuation at 31 March 2012 £401.8m £324.6m £726.4m Occupancy at 31 March 2012 74.3% 48.8% 63.5% Stabilised occupancy assumed in valuations 83.0% 81.6% 82.4% Initial yield pre admin expenses 6.8% 4.4% 5.7
Slide 41: Conclusion
Conclusion • Steady growth in a sub-optimal economic environment • Focus on occupancy, revenue and cash flow growth from existing platform • Quality of earnings – income security through the downturn • Refinancing in 2012, significant first stage completed with Aviva • Objective to achieve dividend
Slide 42: Questions?
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Slide 43: Appendix
Appendix 43 43
Slide 44: Big Yellow Stores May 2012
Big Yellow Stores May 2012 London - 38 stores and sites Outside London - 42 stores and sites 44
Slide 45: Customer Average Length of Stay
Customer Average Length of Stay As at Stores (No of Months) 31/03/2012 < 1 Year 1-2 Years 2-5 Years >5 Years Portfolio 31 March 2011 No of Stores 3 2 18 42 65 62 Domestic Existing 2.5 5.8 10.1 21.4 18.6 18.8 Vacated 1.4 2.9 4.4 6.7 6.5 6.5 Total 2.2 4.0 5.6 8.2 7.9 7.9 Business Existing 3.3 8.2 11.8
Slide 46: Proportion Of Current Customers – Established Stores By Length Of Stay
Proportion Of Current Customers – Established Stores By Length Of Stay In The Business 46
Slide 47: Length of Stay of Customers Vacating in Financial Year
Length of Stay of Customers Vacating in Financial Year 47
Slide 48: Chiswick, April 2012; New Cross, February 2012; Stockport, September 2011
Chiswick, April 2012 New Cross, February 2012 Stockport, September 2011 MLA-75,000sq ft MLA - 60,000sa ft MLA - 60000 sqft Eltham, April 2011 Camberley, January 2011 High Wycombe, June 2010 MLA-70000sq ft MLA - 63000 sq ft MLA - 60,000 sqft
Slide 49: treeiecan ee
treeiecan ee Reading, December 2009 Sheffield Bramall Lane, Poole, August 2009 Nottingham, August 2009 Edinburgh, July 2009 MLA -60000sq ft September 2009 MLA - 60 yft MLA yft MLA-65000sqift ML 0 Liverpool, March 2009 Bromley, March 2009 Birmingham, February 2009 Sheen, December 2008 TO sq ft MLA -
Slide 50: Barking, November 2007 Ealing Southall, November 2007 Sutton, July 2007 Gloucester, December 2006 Edmonton,
Barking, November 2007 Ealing Southall, November 2007 Sutton, July 2007 Gloucester, December 2006 Edmonton, October 2006 MLA -60000sq ft MLA-570 ft MLA -70000sq ft MLA -50000 sqft MLA - 80,000sq it [| —= Locals | A a) aa Kingston, August 2006 Finchley East, May 2006 T Tunbridge Wells, April 2006 Bri
Slide 51: Swindon, April 2004 Orpington, December 2003 Byfleet, November 2003 Chelmsford, April 2003 Finchley North,
Swindon, April 2004 Orpington, December 2003 Byfleet, November 2003 Chelmsford, April 2003 Finchley North, March 2003 MLA -53000sa ft MLA -48000sq ft MLA -54000sq ft MLA -63000satft West Norwood, January 2003 Colchester, December 2002 Brighton, October 2002 Guildford, June 2002 MLA-57,000satt MLA-55
Slide 52: a __ bili
= a __ bili Portsmouth, October 2001 Norwich, September 2001 Dagenham, July 2001 April 2001 Luton, March 2001 MLA ~61000 sa ft MLA -~48000sq ft MLA~50000saft MLA-57000satt MLA~41000saft as == Southend, March 2001 Staples Comer, March 2001 Romford, November 2000 Milton Keynes, September 2000 Cheltenh
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Slide 55: Corporate History
Corporate History • Early 1998 – Market research commenced • October 1998 - Formed Cubic Self Storage • January 1999 - Acquisition of Big Yellow Self Storage Company • September 1999 - Pramerica investment • May 2000 - AIM listing - £40 million placing • May 2001 - Placing and Open Offer - £23 milli
Slide 56: Self Storage Market
Self Storage Market The Market – US Market (2012 Self Storage Almanac) – 50,050 self-storage centres – 2.55 billion sq ft – 7.41 sq ft per person – Population 345 million – UK Market (2012 Drivers Jonas Deloitte/SSA Survey) – 800 self-storage centres (excluding containers) – 29.5 million sq ft – 0.5
Slide 57: Self Storage Market
Self Storage Market • Key Influencers – Public awareness – relatively low, but growing – Change in the economy and GDP growth – Population mobility and density – Physical planning and constraints, smaller homes – Focus on high density development on brownfield sites – Housing demand, divorce, single
Slide 58: UK Market Potential
UK Market Potential • Prompted awareness of self storage (2011 You Gov Market Research) – Currently 61% approximately in London with reasonable knowledge of product – Lower in other major cities – 80% prompted brand awareness of Big Yellow in London • Significant advertising and promotion raising aw
Slide 59: Wholly Owned Development Sites
Wholly Owned Development Sites Store Location Status Anticipated Capacity Gypsy Corner, Highly visible site on A40 in Acton Consent granted 70,000 sq ft West London Enfield, Prominent site on the A10, Great Cambridge Road Consent granted 60,000 sq ft North London Guildford Central Prime location in
Slide 60: Self Storage & Big Yellow - London
Self Storage & Big Yellow - London You Gov Survey Nov 2011 – Prompted Awareness on Brand 60
Slide 61: Self Storage & Big Yellow – Outside London
Self Storage & Big Yellow – Outside London You Gov Survey Nov 2011 – Prompted Awareness on Brand 61
Slide 62: REITs
REITs • Approximately 86% of our revenue currently tax exempt • Comfortably meets the 75% gross asset test at 31 March 2012 • PID of 9 pence per share payable for the year • Shadow capital allowances offset part of the tax exempt profits • All REIT tests met to date 62
Slide 63: Big Yellow Limited Partnership
Big Yellow Limited Partnership • Partnership with Pramerica to develop stores outside of the M25 – £17 million Big Yellow likely equity commitment – £34 million Pramerica likely equity commitment – £60 million debt finance from RBS and HSBC • Fees earned by Big Yellow from venture site acquisition f
Slide 64: Corporate Social Responsibility
Corporate Social Responsibility Key Performance Indicators • 5.5% reduction in Absolute CO2 emissions • 18.6% reduction in carbon intensity • 15.3% increase in solar PV generation • 4.7% reduction in tonnage of waste per store Awards • Attained a place in the top 60 of the Sunday Times Best Green Co
Slide 65: Six Year Track Record
Six Year Track Record Year Ended 31 March 2012 2011 2010 2009 2008 2007 £m £m £m £m £m £m Results Revenue 65.7 61.9 58.0 58.5 56.9 51.2 Operating profit before gains and losses on property assets 35.1 32.1 29.1 30.9 29.3 27.1 Operating cash flow 27.4 23.5 19.1 10.2 14.4 16.7 Adjusted profit before t
Slide 66: Disclaimer
Disclaimer This presentation contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results may differ materially from those expressed in or imp