Slide 1: Results for the Year ended 31 March 2009
Not for distribution in or into the United States Big Yellow Group PLC Results for the Year ended 31 March 2009 18 May 2009 1
Slide 2: Financials
Financials 2
Slide 3: Financial Highlights
Financial Highlights Year Year ended ended 31 March 31 March 2009 2008 Revenue £58.5m £56.9m 3% EBITDA £30.3m £29.6m 2% Adjusted profit before tax £13.8m £15.0m (8)% (Loss)/profit before tax (£71.5)m £102.6m (170%) Adjusted earnings per share 11.89p 11.72p 1% Dividend - Final nil p 5.5p - Total nil
Slide 4: Consolidated Income Statement
Consolidated Income Statement Year ended: 31.03.09 31.03.08 £m £m Revenue 58.5 56.9 3% Cost of Sales (21.8) (20.8) Admin Costs (5.8) (6.8) Underlying Operating Profit 30.9 29.3 2% Revaluation (Deficit)/Surplus (52.8) 92.8 Loss on Development Assets (11.6) (0.5) Net Finance Costs (20.2) (18.8) Non-Re
Slide 5: Movement in Adjusted Profit Before Tax
Movement in Adjusted Profit Before Tax £m Adjusted PBT - year ended 31.03.08 15.0 Underlying gross profit improvement 0.6 Interest expense (net) (1.9) Administration expense saving 0.1 Adjusted PBT - year ended 31.03.09 13.8 5
Slide 6: Big Yellow Limited Partnership
Big Yellow Limited Partnership Big Yellow 33% Interest £000 Investment at 1 April 2008 5,454 Subscription for capital and advances 5,429 Share of operating loss (29) Interest payable and fair value of derivatives (684) Loss on revaluation (885) Share of Partnership net assets at 31 March 2009 9,285
Slide 7: Cashflow and Net Debt Movement
Cashflow and Net Debt Movement Year ended: 31.03.09 31.03.08 £m £m Opening Net Debt (282.3) (187.9) Cash from Operations 33.3 30.8 Interest (Net) (21.9) (16.4) Non recurring finance costs (16.2) - REIT conversion charge (0.1) (12.0) Dividends Paid (6.3) (10.9) Property Purchases - 65.4 Development /
Slide 8: REITs
REITs • Conversion charge – £12.0 million paid in July 2007 – Subject to final agreement with HMRC • Approximately 86% of our revenue currently tax exempt • Comfortably meets the 75% gross asset test at 31 March 2009 • No PID payable in year due to shadow capital allowances offsetting tax exempt pro
Slide 9: Funding Strategy
Funding Strategy 9
Slide 10: Restructuring of Hedging Arrangements
Restructuring of Hedging Arrangements Amount of Debt Weighted Average Weighted Average March 2009 Interest Cost Interest Cost At March 2009 At March 2008 £’m % % Fixed Rate Debt 190.0 4.5 6.1 Floating Debt 121.3 2.3 6.4 Total Debt 311.3 3.7 6.2 At the end of March the Group terminated interest rate
Slide 11: Financial Gearing Levels
Financial Gearing Levels 31.03.09 31.03.08 Net Debt / Gross Property Assets 38% 33% Net Debt / Adjusted Net Assets 57% 48% Interest Cover Quarter ended 31 2.1 2.0 March 2009* Annualised at 31 March 2009* 3.0 n/a * Based on the interest cover covenant of the new core bank facility 11
Slide 12: London Stores
London Stores A1(M) WATFORD ° ENFIELD 5 NORTH FINCHLEY O EDMONTON le) STAPLES CORNER OEAST FINCHLEY ° ROMFORD ILFORD © 2 HANGER LANE ROW BARKING CENTRAL EALING 9 © gee BARKING EAST O ACTON CHISWICKO NORTH KENSINGTON ) fo) HOUNSLOW © FULHAM OKENNINGTON) wy RICHMOND. rey. , OBATTERSEA TWICKENHAMO Dh °
Slide 13: Wholly Owned Development Sites
Wholly Owned Development Sites Store Location Planned Store Planning Status Capacity Chiswick On the A4, high visibility from M4 flyover, 75 - 100,000 sq ft Existing warehouse use currently the Sotheby’s building consent Eltham Junction of A20 and A205, prominent site on 70,000 sq ft Consent granted
Slide 14: Cost to Complete
Cost to Complete Wholly Owned Development Sites – cost to date £48.9m 6 in London and 1 in central Guildford Estimated Cost to Complete the 7 stores (£6.6m committed) £53.1m Total Estimated Cost £102.0m Estimated Net sq ft provided 485,000 Cost per sq ft £210 Valuation March 2009: Comparable London
Slide 15: Background and Reasons for the Placing
Background and Reasons for the Placing • Big Yellow established as premium self storage brand in the UK, operating from a current platform of 54 trading stores with a capacity of 3.4 million sq ft • £14.9 million of existing facilities used to fund restructuring of interest rate derivatives, providi
Slide 16: Placing Structure
Placing Structure • Announcement Date: 18 May 2009 • Structure: Cash Placing • Size of Issue: Up to 9.9% of the issued share capital • Proceeds: Expected gross proceeds of up to £30m • Pricing: Maximum discount on pre night close of 10% • Bookrunner: J.P. Morgan Cazenove • Settlement: T+3 • US Restr
Slide 17: Marketing and the Brand
Marketing and the Brand 17
Slide 18: Self Storage Awareness - UK
Self Storage Awareness - UK Source: You Gov Survey September 2008 18
Slide 19: Self Storage Awareness - London
Self Storage Awareness - London Source: You Gov Survey September 2008 19
Slide 20: A Different Approach for 2009
A Different Approach for 2009 1800 1600 1400 1200 1000 £m 2008 Actual 800 2009 Budget 600 400 200 0 TV Press Online Ongoing costs Directories PR • Increase online budget from £0.8m to £1.6m • No TV or press • Total budgeted spend of £2.6m in 2009/10 20
Slide 21: Branding Delivers Results Online
Branding Delivers Results Online • The majority of our prospects are delivered by the website – 75% of our website traffic is delivered by search – Google has 90% share of the UK self storage industry • “Storage” & “self storage” – Most commonly used generic terms – We achieve more visits than anyon
Slide 22: Operations
Operations 22
Slide 23: Store Operations
Store Operations • 6 openings in the year, creating 380,000 sq ft additional capacity • 54 stores (2008: 48) trading at year end. Total capacity 3.4 million sq ft (2008: 3 million sq ft) • 34k move-ins taking 2.1 m sq ft (2008: 40k in 2.4m sq ft) • Occupancy at year end (including JV stores) 1,771k
Slide 24: Portfolio Summary
Portfolio Summary March March March March March March 2009 2009 2009 2008 2008 2008 Number of stores Same Store Lease Up Total Same Store Lease Up Total Number of stores 32 18 50 32 15 47 As at 31 March 2009: Total capacity (sq ft) 1,944,000 1,208,000 3,152,000 1,944,000 1,002,000 2,946,000 Occupied
Slide 25: Kennington, 66,000 sq ft
Kennington, 66,000 sq ft 25
Slide 26: Sheffield Hillsborough, 60,000 sq ft
Sheffield Hillsborough, 60,000 sq ft 26
Slide 27: Sheen, 64,000 sq ft
Sheen, 64,000 sq ft 27
Slide 28: Birmingham, 60,000 sq ft
28 Birmingham, 60,000 sq ft ~~
Slide 29: Bromley, 71,000 sq ft
Bromley, 71,000 sq ft 29
Slide 30: Liverpool, 60,000 sq ft
Liverpool, 60,000 sq ft 30
Slide 31: Big Yellow Self Storage Users
Big Yellow Self Storage Users Customers moving into Big Yellow stores between August 2008 and March 2009 31
Slide 32: Proportion Of Current Customers By Length Of Stay
Proportion Of Current Customers - Same Stores By Length Of Stay In The Business 3 years or more 1-3 years Less than 1 year 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 32
Slide 33: Customer Average Length of Stay
Customer Average Length of Stay Stores (No of Months) 31 March < 1 Year 1-2 Years 2-5 Years >5 Years Portfolio 31 March 2009 2008 Stores 6 6 13 29 54 Dom Existing 4.0 5.8 12.0 20.2 17.6 15.1 Vacated 2.1 2.9 4.6 6.5 6.2 5.9 Total 3.0 4.2 6.2 8.2 7.8 7.5 Bus Existing 5.1 5.6 14.9 21.5 19.4 17.2 Vacate
Slide 34: Property
Property 34
Slide 35: Big Yellow Stores May 2009
Big Yellow Stores May 2009 London - 38 stores and sites Outside London - 42 stores and sites 35
Slide 36: Property Review and Valuations
Property Review and Valuations • 9 planning consents since April 2008 • Development pipeline of 16 sites, 1.1 million net lettable space −Pramerica JV: 9 sites, 0.6m sq ft, 7 with planning −Wholly owned: 7 sites, 0.5m sq ft, 6 with planning • £25 million of surplus land • 58% stores and sites within
Slide 37: Movement in Adjusted Diluted NAV per Share
Movement in Adjusted Diluted NAV per Share £m No of Diluted Shares Pence Per Share Adjusted NAV at 31 March 2008 618.6 118.5 522.0 Other items (including option exercises) (1.9) 0.5 616.7 119.0 518.2 Reduction in value of land and investment properties (64.5) (54.3) Swap tear up (14.9) (12.5) Purcha
Slide 38: Revaluation Movement in the Year
Revaluation Movement in the Year £m % (1) 32 same stores at 31 March 2008 Value decrease (40.2) Capex in year (0.8) (41.0) (8.5) (2) 15 lease-up stores at 31 March 2008 Value decrease (18.7) Capex in year (2.7) (21.4) (8.0) (3) 3 new stores opened – Value 43.1 Kennington, Bromley and Sheen Cost (33.
Slide 39: Property Accounts Valuation
Property Accounts Valuation Freehold - 43 – 10 year DCF assuming notional sale at year ten – Stabilised yield post-admin expense 8.64% (March 2008: 7.67%) – Weighted average occupancy 85% (Mar 2008: 86%) at maturity – Purchaser’s costs – 5.75% assuming property sale Leasehold - 7 – No sale of assets
Slide 40: Conclusion
Conclusion • Current trading and outlook • Opportunity to leverage off market leading brand • Growth potential from existing platform • Value creation of new stores 2-5 years 40
Slide 41: Appendix
Appendix 41
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Slide 43: 24 hour CCTV & individually alarmed
43 am 24 hour CCTV & individually alarmed
Slide 44: 44
44
Slide 45: History
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 million • June
Slide 46: Self Storage Market
Self Storage Market The Market – US market (2007 Self Storage Almanac) – 55,000 self-storage centres – 2 billion sq ft – 7.0 sq ft per person – Occupancy range of 82-89% since 1990 – Population 300 million – 4 to 5% of US REIT Market – UK market – 680 self-storage centres (excluding containers) – 25
Slide 47: Self Storage Market
Self Storage Market • Key influencers – Public awareness – low, new growing market – Population mobility and density – Physical planning and constraints, smaller homes – Focus on high density development on brownfield sites – Rising disposable incomes with GDP growth – Housing demand, divorce, singl
Slide 48: UK Market Potential
UK Market Potential • Awareness of self-storage (2008 You Gov Market Research) – Currently 59% approximately in London with reasonable knowledge of product – Lower in other major cities – 82% brand awareness of Big Yellow in London • Significant advertising and promotion raising awareness • Better l
Slide 49: Big Yellow Model
Big Yellow Model • Premium Brand – attractive modern premises – prominent main road frontages – high quality fit out – broad client base - B2B and B2C – ancillary packing materials and insurance sales • Customer Focus – customer service/loyalty – safe/secure – easy access 7 days a week, 24 hours per
Slide 50: Big Yellow Limited Partnership
Big Yellow Limited Partnership • £150m partnership with Pramerica to develop stores in the midlands, north of England and Scotland – £25 million Big Yellow – £50 million Pramerica – £75 million development loan RBS/HSBC/HSH • Fees earned by Big Yellow from venture site acquisition fees, planning suc
Slide 51: Purchaser's Cost Assumption
Purchaser’s Cost Assumption • We believe 2.75% is more representative of the cost to be paid by a prospective purchaser for these assets • Business asset valuation • Precedent – self storage transactions • Why? – Operational assets – Novation of maintenance and supplier contracts – Management and st
Slide 52: 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
Slide 53: Disclaimer
Disclaimer This document, which has been prepared by Big Yellow Group PLC (the “Company”), is strictly confidential and is being provided to you solely for your information and comprises the written materials/slides for a presentation concerning the proposed placing (the “Placing”) by the Company. T