Safestore Holdings Plc · LSE:SAFE
Safestore — FY2007 Earnings Presentation
29 slides from Safestore's earnings presentation, Jan 22, 2008
Slide 1: Full Year Results Presentation
Full Year Results Presentation 22 January 2008 The largest self storage retailer in the UK and Paris
Slide 2: Results Highlights
Results Highlights New Stores Opened in 2007 y Strong Performance Across All Key Metrics • Occupancy growth up 7.4% • Average rate per sq ft up 8.3% • Ancillary sales up 23.0% Slough Eastbourne y EBITDA (pre exceptionals) increased by 21.7% y EBITDA Margin increase of 2.8% to 54.8% y Adjusted EPS in
Slide 3: Financial Review
Financial Review Richard Hodsden, Chief Financial Officer
Slide 4: Summary IFRS Profit and Loss Account
Summary IFRS Profit and Loss Account Year ended 31 Year ended 31 Change October 2007 October 2006 £m £m Revenue 74.3 64.3 +15.5% Operating expenses (excluding exceptionals) (33.6) (30.8) EBITDA before exceptional items and investment gain 40.7 33.5 +21.7% Exceptional items (net) 0.8 (6.2) Depreciati
Slide 5: Summary IFRS Balance Sheet
Summary IFRS Balance Sheet Year ended 31 Year ended 31 October 2007 October 2006 £m £m Assets Non-current assets Investment properties 647.1 519.3 Development properties 31.9 7.9 Other non-current assets 9.9 11.1 Non-current assets 688.9 538.3 Non current assets held for resale - 0.7 Current assets
Slide 6: Summary - Net Debt
Summary - Net Debt Year ended 31 Year ended 31 October 2007 October 2006 £m £m Total bank borrowings (gross of FRS 4 adjustment) (246.2) (237.0) Cash 18.6 9.5 Net debt (227.6) (227.5) Proportion of net debt covered by interest hedge 78% 78% y Cost of debt is LIBOR plus Margin y Interest hedge in pla
Slide 7: Summary IFRS Cash Flow Statement
Summary IFRS Cash Flow Statement Year ended 31 Year ended 31 October 2007 October 2006 £m £m Operating profit (before investment gain) 41.5 26.3 Working capital and non-cash movements (1.7) 6.8 Operating cash flow 39.8 33.1 Maintenance capex (incl signage) (6.3) (14.4) Expansion capex (39.2) (12.8)
Slide 8: Property Portfolio Valuation – Cushman & Wakefield
Property Portfolio Valuation – Cushman & Wakefield Maximum Lettable Location Tenure Stores Valuation** Uplift *** Area (‘000 sq ft)* UK Freehold & Long 52 2,312 £421m £75m Leasehold Short Leasehold 31 1,319 £98m £22m France Freehold & Long 5 206 £29m £11m Leasehold Short Leasehold 15 631 £36m £5m To
Slide 9: Portfolio Summary under IFRS
Portfolio Summary under IFRS October 2007 October 2006 New Established Mature Total New Established Mature Total Number of Stores 14 54 35 103 8 54 36 98 Sq ft ’000 Sq ft ’000 Sq ft ’000 Sq ft ’000 Sq ft ’000 Sq ft ’000 Sq ft ’000 Sq ft ’000 MLA (self storage only) 660 2,101 1,566 4,326 316 2,101 1,
Slide 10: REITs
REITs y Continue to examine the possibility of converting to a REIT y Safestore currently benefits from carried forward tax losses y As such unlikely to pay tax in the current financial year y Continue to monitor our position and could convert to a REIT at such time as is financially advantageous to
Slide 11: Operational Review
Operational Review Steve Williams, Chief Executive Officer
Slide 12: The Safestore Model – Retail & Customer Focus
The Safestore Model – Retail & Customer Focus y Retail focused business with significant property assets y Continual investment in the fabric and ambience of the stores y “Lowest Price Guarantee” – We will never be beaten on price – Industry beating offers y Highly trained and incentivised staff y C
Slide 13: The Safestore Model – Portfolio & Space Management
The Safestore Model – Portfolio & Space Management y Safestore will have over 5 million sq ft of self storage space from 119 stores y Flexible property model in terms of store size & tenure • Portfolio includes stores of less than 20,000 sq ft and over 100,000 sq ft y Site clustering strategy enhanc
Slide 14: Driving Occupancy
Driving Occupancy Occupancy / MLA (sq ft.) 80% 77.9% 75.7% 76.2% 73.3% 73.0% 67.6% 67.3% 68.1% 70% 65.9% 62.6% 59.1% 60% 54.7% 50% 41.3% 40% 30% 17.7% 20% 10% 0% e up ew K ris n d ur o fU he ro Pa nd N at G is to M Lo bl es ta R Es Year ended 31October 2006 Year ended 31 October 2007 Note Mature: pr
Slide 15: Driving Growth in Rates
Driving Growth in Rates Rate (GBP £ / sq ft.) Year End Rates 30 28.23 24.91 24.02 25 22.87 22.64 21.42 21.96 21.64 20.49 20.39 19.80 19.21 20 18.30 16.88 15 10 5 0 * d e up ris n K he ur ew o fU ro Pa nd at is N G M to bl Lo ta es Es R Year ended 31October 2006 Year ended 31 October 2007 Note Inner
Slide 16: Substantial Opportunity for Further Growth
Substantial Opportunity for Further Growth Enfield Chingford • 103 stores (including 3 Business Borehamwood Stanmore Edgware Wood Green Alexandra Palace Centres), 18 expansion sites Staples Corner Stoke Newington Ruislip Holloway Camden Pentonville Road Paddington Ilford • UK national coverage • Mar
Slide 17: Expansion Stores
Expansion Stores y 18 exchanged expansion stores will add As at 31 October 2007 Tenure Full Full Pipeline Opened Estimated circa 900,000 sq ft Summary of MLA by 2010 Planning Planning MLA MLA Opening Sq. ft Sq ft Then Now • 10 with planning consent Development Stores acquired/under contract at the t
Slide 18: Brand and Marketing & Enquiry Drivers
Brand and Marketing & Enquiry Drivers y £3.0 million invested in advertising & marketing in 2007 y £0.5 million invested in improved signage y The Web is the highest driver of enquiries, reflecting our targeted marketing spend y Signage still contributes to the greatest volume of new business due to
Slide 19: Outlook
Outlook y Trading in Q1 2008 consistent with historic seasonal trading patterns • Revenues in line with expectations y Strong second and third quarters of the financial year y Market leader in both UK and Paris to take advantage of growing sector: • Fundamentals of business remain robust • Increasin
Slide 20: Appendix
Appendix
Slide 21: Property Portfolio Valuation – Category Breakdown
Property Portfolio Valuation – Category Breakdown October 2007 October 2007 October 2006 Stores MLA Uplift % of Uplift Valuation % of value Valuation £m £m £m Mature 37 1,673 272 47% 231 42 37% Established 52 2,116 251 43% 204 48 42% New 14 678 60 10% 36 24 21% Total Group 103 4,467 584 471 113 21
Slide 22: Investment Property Valuation
Investment Property Valuation £m Deemed Cost Revaluation on deemed cost Valuation Freehold Centres As at 1 November 2006 195.3 161.4 356.7 Movement in Period 76.0 92.9 16.9 As at 31 October 2007 237.4 449.6 212.2 Leasehold Centres As at 1 November 2006 47.7 65.3 113.0 Movement in Period 9.1 11.1 20.
Slide 23: Customer Average Length of Stay in the UK
Customer Average Length of Stay in the UK As at 31 October Stores (No. of Months) 2007 Age of < 1 Year 1-2 Years 2-5 Years >5 Years Portfolio Store No of 5 3 9 64 81 Stores (wks) (mths) (wks) (mths) (wks) (mths) (wks) (mths) (wks) (mths) Business Existing 8 1.9 29 6.7 60 13.9 118 27.2 107 24.8 Vacat
Slide 24: Sales Mix and Contribution Analysis
Sales Mix and Contribution Analysis Total Revenue Growth – UK Total Revenue Growth – France 65.0 14.0 15.7% 14.5% 60.0 13.0 14.4% 61.5 55.0 12.0 12.8 14.6 Revenues (£m) Revenues (£m) 50.0 11.0 53.1 45.0 10.0 11.2 46.4 40.0 9.0 9.8 35.0 8.0 30.0 7.0 2005 FY 2006 FY 2007 FY 2005 FY 2006 FY 2007 FY Anc
Slide 25: Strong Performance Indicators
Strong Performance Indicators Price Improvements – UK Stores Price Improvements – French Stores Year End Rates Year End Rates 25 25 11.6% 10.8% £/sq ft of Let Area 22.58 £/sq ft of Let Area 8.1% 22.87 11.7% 20 20 20.37 20.49 18.95 18.24 15 15 2005 FY 2006 FY 2007 FY 2005 FY 2006 FY 2007 FY IFRS EBIT
Slide 26: Operational Management
Operational Management New Stores Established Stores Mature Stores (0 to 2 full financial years) (2 to 8 years) (opened pre-1998) Occupancy Growth 999 99 9 Store 9 99 9 Reconfiguration Rental Yield 9 99 999 Operational y Maximise occupancy growth y Manage according to specific y Manage to maximise r
Slide 27: The Customers
The Customers Customer Information Domestic Customers: Why Self Storage? y Domestic customers – Generally require smaller, higher yielding units House move – Price-inelastic demand Short of space – Less frequent visits De-cluttering – Event-driven customers and lifestyle customers y Business custome
Slide 28: UK Self Storage Market: Still Immature
UK Self Storage Market: Still Immature European Market Share by Country (Fedessa) Favourable Change in Demographic Factors 12.1% 2.7% 11.6% y UK self storage market has increased in size from 81 stores 3.6% in 1996 to 680 stores in 2007 3.1% 4.5% y According to SSA, UK self storage is growing at c.1
Slide 29: Disclaimer
Disclaimer This document has been prepared by the Company solely for use at presentations held in connection with the announcement of its Preliminary Results for the year ended 31 October 2007. The information in this document has not been independently verified and no representation or warranty, ex