Slide 1: Results for the Year ended 31 March 2015
Big Yellow Group PLC Results for the Year ended 31 March 2015 19 May 2015
Slide 2: Proven Model
Proven Model • UK self storage penetration in key urban conurbations remains relatively low • Very limited new supply coming onto the market Attractive Market Dynamics • Resilient through the downturn • Sector growth is positive, with increasing domestic demand • Industry’s most recognised brand • P
Slide 3: Key Metrics
Key Metrics 2015 2014 Occupancy 73.2% 67.9% 8% Occupancy Growth – All Stores 267,000 sq ft 200,000 sq ft 34% Average Net Achieved Rent Per Sq Ft £24.95 £24.32 3% Revenue £84.3 million £72.2 million 17% Adjusted Profit Before Tax £39.4 million £29.2 million 35% Adjusted EPRA Earnings Per Share 27.1 p
Slide 4: Highlights
Highlights • Increased demand throughout UK • Growth in all our key store metrics • 32% increase in adjusted earnings per share and total dividend • Acquisition of remaining two thirds of BYLP and £76.4m placing • Platform expanded by 234,000 sq ft: – Two new freehold stores constructed at Gypsy Cor
Slide 5: Acquisition of Big Yellow JV Stores
Acquisition of Big Yellow JV Stores • JV partner 66.7% interest in the 12 BYLP stores acquired for £39.25 million and £57 million of debt repaid on 1 December 2014 • Financed in part by £76.4 million placing (net of expenses) at 547.5 pence • Maintained strong capital structure with Interest Cover i
Slide 6: Financial Review
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Slide 7: Portfolio Summary
Portfolio Summary • Increased occupancy growth of 267,000 sq ft for the year (2014: 200,000 sq ft) • Occupancy growth of 82,000 sq ft in Q4 to 73.2% (2014: 88,000 sq ft, 67.9%) • Closing net rent £25.23 psf, up 2% from prior year end • Average net rent for the year £24.95, up 3% from prior year • St
Slide 8: Portfolio Summary – Pro-Forma Big Yellow Stores
Portfolio Summary – Pro-Forma Big Yellow Stores March March March March March March March March 2015 2015 2015 2015 2014 2014 2014 2014 Mature Established Developing Total Mature Established Developing Total Store Age at 1 April 2014 >6 years 3-6 years <3 years >6 years 3-6 years <3 years Number Of
Slide 9: Consolidated Income Statement
Consolidated Income Statement Year Ended: 31.03.15 31.03.14 £m £m • Revenue up 17%, like-for-like Revenue 84.3 72.2 store revenue up 12%, Cost Of Sales (27.4) (25.1) Partnership stores revenue of £3.7 million from 1 December Admin Expenses (8.5) (7.6) Underlying Operating Profit 48.4 39.5 • Cost of
Slide 10: Adjusted PBT Bridge
Adjusted PBT Bridge Increase in share of Reduction Increase in Decrease in associates’ in net administrative capitalised Increase interest recurring expenses in gross interest payable profit profit £0.8m £0.6m £(0.9)m £9.8m £(0.1)m £39.4m Adjusted PBT 31 March £29.2m 2015 Adjusted PBT 31 March 2014
Slide 11: Cash Flow and Net Debt Movement
Cash Flow and Net Debt Movement Year Ended: 31.03.15 31.03.14 £m £m • 29% growth in free cash flow Opening Net Debt (226.1) (230.5) Cash From Operations 51.8 43.3 • Capex comprises acquisition of Interest (Net) (9.5) (10.5) Battersea, Oxford 2, BiG Free Cash Flow 42.4 32.8 Storage, the freehold of C
Slide 12: Capital Structure
Capital Structure 31.03.15 31.03.14 Net Debt / Gross Property Assets 27% 28% Net Debt / Adjusted Net Assets 35% 36% Pre-Interest Operating Cash Flow Cover 5.4x 4.1x • The Group’s average cost of debt for the year was 3.9% • At 31 March 2015, the Group’s average cost of debt was 3.3% • When the M&G f
Slide 13: Armadillo
Armadillo Big Yellow 20% Interest Armadillo 1 Armadillo 2 From 16 April 14 From 3 Feb 15 £000 £000 Investment At 1 April 2014 - - Net Equity Investment 1,920 1,789 Share Of Operating Profit 471 43 Net Interest Payable (123) (15) Fair Value Of Derivatives (39) (7) Gain On Revaluation 2,042 290 Acquis
Slide 14: Operations Review
OPERATIONS REVIEW
Slide 15: Overview
Overview • Continuing focus on occupancy and revenue growth from a secure capital structure • Customer service is essential to achieving this – ongoing investment in digital customer satisfaction programme and training • Leveraging our market leading brand to drive growth through digital channels –
Slide 16: Armadillo Self Storage
Armadillo Self Storage • A lower frills brand in smaller towns and cities – 20% joint ventures • Consolidated into our operating platform – improving efficiency and national coverage • 10 store Armadillo platform acquired in April 2014 with an additional 4 stores acquired in January 2015 • Platform
Slide 17: 9% Improved Move-in Activity Over Year
9% Improved Move-in Activity Over Year All Stores Year ended Year ended Increase Net 31 March 31 March Move-ins 2015 2014 Q1 April - June 20,196 18,685 8% 5,613 Q2 July - September 21,873 19,946 10% (704) Q3 October - December 16,897 14,848 14% (1,410) Q4 January - March 16,131 15,464 4% 1,126 Total
Slide 18: Rental Growth Analysis
Rental Growth Analysis Average Net rent occupancy per sq ft growth in the year over the year 0 to 60% 1.1% 60 to 70% 1.4% 70 to 80% 2.0% Above 80% 5.9% • Higher occupancy drives better rental growth as less churn, fewer opening offers and higher proportion of customers moving in at asking rates 18
Slide 19: Facilities In The SSA 2015 Survey By Year Opened
Facilities In The SSA 2015 Survey By Year Opened All facilities: year opened 50 45 40 35 30 25 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Year opened Source: SSA UK 2015 Annual Survey 19
Slide 20: New Site Development
New Site Development • One new store opened and two existing acquired in 2014/15. Two new stores opening 2015/16 • Seven year plan with increased openings of an average of two per year at a cost of £25-35 million capex per year • Retain focus on freehold, current percentage of freehold by value is 9
Slide 21: Big Yellow Stores May 2015
London 38 stores and sites Big Yellow Stores Outside London 49 stores and sites May 2015 21
Slide 22: Strategic Summary
Strategic Summary • Strong revenue performance drives earnings and dividend growth • Operational focus on driving occupancy, revenue and cash flow growth • Group capital structure provides strong foundation for future growth • Looking to selectively acquire Big Yellow development sites and existing
Slide 23: Appendix
APPENDIX Additional Financial Information Marketing Review Operations Store Portfolio
Slide 24: Property Valuation
Property Valuation VALUATION METRICS Mature Established Developing Leasehold Freehold Freehold Freehold Total Number of Stores 6 44 14 5 69 MLA Capacity (sq ft) 398,000 2,723,000 883,000 340,000 4,344,000 Valuation at 31 March 2015 (£m) 41.6 689.6 183.9 92.0 1,007.1 Value Per Sq Ft (£) 105 253 208 2
Slide 25: Development Pipeline
Development Pipeline DEVELOPMENT PIPELINE Anticipated Store Location Status Capacity Battersea Potential redevelopment of Big Yellow store and Early design discussions with Up to an adjoining retail in a mixed use residential scheme to the Borough Council additional increase our self storage capacit
Slide 26: Movement in Adjusted EPRA NAV
Movement in Adjusted EPRA NAV EPRA Adjusted £m NAV Per Share 1 April 2014 634.4 446.5 Share Placing 76.4 7.9 1 April 2014 (Restated) 710.8 454.4 Adjusted Profit 39.4 25.1 Equity Dividends Paid (27.9) (17.8) Revaluation Movements (Including Share Of Associates) 67.6 43.2 Movement In Purchaser’s Cost
Slide 27: Per Store Analysis
Per Store Analysis Year Ended 31 March 2015 Mature Established Developing Stores Stores Stores Number Of Stores 50 14 5 Average Store Capacity 62,420 63,071 68,000 Closing Sq Ft Occupied Per Store 47,000 43,786 43,000 Occupancy 75.3% 69.4% 63.2% Annualised Average Revenue Per Store £1,374,000 £1,138
Slide 28: Big Yellow Relative TSR Performance
Big Yellow Relative TSR Performance Big Yellow FTSE 350 RE SS FTSE All Share 900 740.1% (15.2% p.a.) 800 700 600 500 400 207.1% 300 (7.8% p.a.) 200 102.0% (4.8% p.a.) 100 0 05-May-00 31-Oct-01 28-Apr-03 23-Oct-04 21-Apr-06 17-Oct-07 13-Apr-09 10-Oct-10 06-Apr-12 02-Oct-13 31-Mar-15 Source: Datastrea
Slide 29: The Brand Leader
The Brand Leader • Highly branded, prominent stores on main roads, promoting the brand every minute of every day • 1999 - 2003 Radio advertising • 2003 - 2008 TV advertising • 2008 onwards Digital strategy: − Flexible, targeted, always on • High brand referral from word of mouth driven by excellent
Slide 30: Research of Brand and Market Awareness
Research of Brand and Market Awareness • YouGov commissioned survey run annually for the last 9 years • Monitors our brand awareness • Statistically robust based on omnibus survey across all adult demographic groups - 1,035 sample size London - 2,040 sample size for the rest of the UK 30
Slide 31: Unprompted Awareness / Prompted Awareness
Unprompted Awareness “What are the names of any self storage companies you can think of?” London Rest of the UK excluding NI Prompted Awareness “Which, if any, of the following self storage companies have you heard of ?” 31 Source: YouGov Survey May 2015
Slide 32: High Brand Awareness = High Online Market Share
High Brand Awareness = High Online Market Share • A significant proportion of web visits come from people searching for our brand - Lower cost of acquisition - More likely to convert • High brand recognition leads to more clicks and web visits when people search for generic terms e.g. “self storage”
Slide 33: The Growth Opportunity
The Growth Opportunity • Only 12% of those surveyed have used self storage before or are currently using storage • Low historic use with 75% of Big Yellow’s customers using self storage for the first time • Increasing customer repeat use and referrals • Self storage awareness will continue to grow w
Slide 34: Staying Ahead Of The Game
Staying Ahead Of The Game • Prospect Acquisition − Projected £4m investment in marketing in 2015/16 (2014/15: £3.6m) − Search (paid & organic), display, social − Business development & partnerships − PR and press coverage • Prospect Conversion − Continually improving the website journey and usabilit
Slide 35: The Big Yellow Mobile Site
The Big Yellow Mobile Site • 48% of our web traffic in March 2015 came from mobile devices (including tablets and smartphones) • 32% from smartphones • Up from 27% in March 2014 • New mobile site • enhanced usability • cleaner design • more features including; business, wine, student, FAQs, video, r
Slide 36: Ongoing Consumer PR
Ongoing Consumer PR • Our regular PR stories allow us to talk about self storage and its benefits against lifestyle trends and life events − Clutter Wars: A look at how and why couples regularly row over shared space and clutter in the home − Boomerang Belongings: A study of how parents throw out th
Slide 37: Customer Support Centre
Customer Support Centre • Over 150,000 calls answered in the year to 31 March 2015 • Reservations taken were up 18% on last year • Over 870,000 sq ft of space moved in during the year was reserved by the Customer Support Centre • Average mystery shop score of 97.2% over the year • Achieved an averag
Slide 38: National Accounts
National Accounts • Businesses can store at multiple locations nationwide through one dedicated point of contact • Our extended network of third party providers enables customers to have a single self storage supplier relationship • We provide a range of business services. These include accepting de
Slide 39: Self Storage Market
Self Storage Market Key Influencers – Growing public awareness – Change in economic activity and GDP growth – Population mobility and investment in existing homes – Physical planning and constraints, smaller homes – Focus on high density development on brownfield sites – Housing demand, divorce, sin
Slide 40: Self Storage Market
Self Storage Market – US Market (2015 Self Storage Almanac) – Population 320 million – 52,500 self storage centres – 2.34 billion sq ft – 7.3 sq ft per person – Australian Market (2015 Self Storage Almanac) – Population 23.1 million – 1,200 self storage centres – 37.0 million sq ft – 1.6 sq ft per p
Slide 41: Reasons For Using Self Storage
Reasons For Using Self Storage Overall Occupied Space 31 March 2015 Demand Profile of Move-ins only April 2014 to March 2015 Business customers - 34% Domestic customers - 66% April 2013 to March 2014 Moving 50% Decluttering 11% Business storage 10% Student storage 9% Other 8% Travelling 6% Home impr
Slide 42: Length of Stay of Customers Vacating in Financial Year
Length of Stay of Customers Vacating in Financial Year 2015 7.2 2014 7.6 2013 7.0 2012 7.2 Months 2011 7.1 2010 8.1 2009 8.6 2008 7.4 0 1 2 3 4 5 6 7 8 9 10 42
Slide 43: Customer Average Length of Stay
Customer Average Length of Stay As at Stores (No of Months) 31/03/2015 0-3 Years 3-6 Years >6 Years Portfolio 31/03/14 No of Stores 2 11 56 69 66 Business Existing 10.3 17.7 31.1 27.6 28.2 Vacated 4.0 6.6 11.2 10.9 10.8 Total 6.7 9.5 13.3 12.9 12.9 Domestic Existing 8.5 12.1 22.8 20.9 21.2 Vacated 3
Slide 44: Pricing Strategy
Pricing Strategy • Industry fully transparent with pricing online • Rolling existing customer price increases after 6 months and annually thereafter • Standard offer across all stores of 50% off for up to 8 weeks • Dynamic Pricing – positive and negative • Focus on maximising our revenue through yie
Slide 45: Corporate History
Corporate History • 1998 – Market research and formation of Cubic Self Storage in October • 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 raising £23 million • J
Slide 46: Enfield – 60,000 sq ft
46 Enfield — 60,000 sq ft Pa em RISE, Get some space in your life.
Slide 47: Chester – 69,000 sq ft
Chester – 69,000 sq ft 47
Slide 48: Oxford 2 – 35,000 sq ft
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Slide 49: Enfield, April 2015
Enfield, April 2015 MLA - 60000 sqft Gypsy Comer, April 2014 MLA -70000sq tt Stockport, September 2011 MLA - 65,000 sq ft Chester, February 2015 MLA - 69,000 sqft Chiswick, April 2012 MLA -75000sq ft Eltham, April 2011 MLA - 70,000 sq ft Camberley, January 2011 MLA - 68,000 sq ft Oxford 2, July 2014
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Slide 52: New Malden, May 2002 Hounslow, December 2001 Battersea, December 2001
: P | - v7 New Malden, May 2002 Hounslow, December 2001 Battersea, December 2001 Ilford, November 2001 Cardiff, October 2001 MLA - 81000 sq ft MLA - 54,000 sq MLA - 34) ft MLA - 58,000 sq ft MLA - 74000 sq ft — me — Wandsworth, April 2001 Luton, March 2001 MLA ~ 47000 sq ft MLA ~ 41,000sq ft mao Sta
Slide 53: To open doors,
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Slide 54: 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