Big Yellow Group PLC · LSE:BYG
Big Yellow — H1 2006 Earnings Presentation
22 slides from Big Yellow's earnings presentation, Nov 15, 2005
Slide 1: Results for the Six Months and Second Quarter ended 30 September 2005
Big Yellow Group PLC Results for the Six Months and Second Quarter ended 30 September 2005 15 November 2005 1
Slide 2: IFRS
IFRS • First time adoption • 27 September announcement • Investment properties • UK GAAP reconciliations • Adjusted PBT, NAV per share 2
Slide 3: Highlights
Highlights 2nd quarter 1st quarter 6 months 6 months ended ended ended ended 30 September 30 June 30 September 30 September 2005 2005 2005 2004 Annualised Revenue £42.7m £39.8m +7% £42.7m £35.0m +22% Turnover £10.7m £9.6m +11% £20.3m £15.6m +30% Adjusted profit before £6.0m £3.4m +76% tax Adjusted e
Slide 4: Highlights - Continued
Highlights - Continued • Adjusted profit before tax of £6.0 million up 76% (2004: £3.4 million) • Adjusted net assets per share of 227.7 pence as at 30 September 2005 (2004: 179.6 pence) (Mar 05: 191.1 pence) • Interim dividend increased to 2.0 pence per ordinary share (2004: 0.5 pence) • 35 stores
Slide 5: Trading Summary
Trading Summary Years since opening as at 1 September September September September September September April 2005 2005 2005 2005 2004 2004 2004 >2 years <2 years Total >2 years <2 years Total Number of stores 27 8 35 27 4 31 As at 30 September 2005: Total capacity (sq ft) 1,663,000 448,000 2,111,00
Slide 6: Capex Summary
Capex Summary September September September 2005 2005 2005 > 2 years < 2 years Total No of Stores 27 8 35 £’m £’m £’m 119.7 46.6 166.3 To 30 September 2005 to - 1.5 1.5 complete Total Cost 119.7 48.1 167.8 Freehold 98.9 48.1 147.0 Leasehold (9 stores) 20.8 - 20.8 119.7 48.1 167.8 6
Slide 7: Store Trading Performance
Store Trading Performance • 35 stores open with total capacity 2.1 million sq ft • 1.65 million sq ft occupied, 78% • 179,000 sq ft occupancy growth in last 6 months. (2004: 135,000 sq ft) • New stores performing well; opened Beckenham and Leeds in the period • 27 stores open more than 2 years: − 86
Slide 8: Property Valuation
Property Valuation As at 30 Cost Depn Net Book Valuation Revaluation September £m £m Value £m Uplift 2005 £m £m Freehold 145.5 (5.1) 140.4 274.8 134.4 Trading Stores Leasehold 20.8 (2.6) 18.2 54.5 36.3 Trading Stores 166.3 (7.7) 158.6 329.4 170.8 Development 34.2 - 34.2 34.2 - Sites Total 200.5 (7.7
Slide 9: Property Valuation
Property Valuation Freehold – 10 year DCF assuming notional sale at year ten – Cap yield of year one NOI @ 7. 09% (Mar 2005: 7.26%), rising to 8.37% (Mar 2005: 8.83%) in year after final stabilisation – Weighted average occupancy 85.74% (Mar 2005: 85.64%) at maturity Leasehold – No sale of assets at
Slide 10: Adjusted Net Assets Per Share
Adjusted Net Assets Per Share As at As at As at 30 Sept 2005 30 Sept 2004 31 March 2005 £’000 £’000 £’000 Basic net asset value 188.7 147.8 159.2 Exercise of share options 7.0 7.1 7.3 Diluted net asset value 195.7 154.9 166.5 Adjustments: Deferred tax on revaluation 51.2 38.6 40.2 surpluses Deferred
Slide 11: Property Review
Property Review • Acquired 3 freehold sites for development during the period – Balham, Twickenham and an existing store in Richmond • 37 of 47 stores are freehold, 1 long leasehold and 9 leasehold • Planning permissions on 41 stores – Remaining 6 are subject to Planning Applications • 12 stores in
Slide 12: Property Strategy
Property Strategy • Current portfolio – 47 stores and sites, providing 2.9 million sq ft of net storage – Average store size is approximately 60,000 sq ft – 81% freehold currently by number of stores and this will increase • Future – Acquire between 6 and 8 sites per annum – Freehold bias – Maintain
Slide 13: Big Yellow Stores
Big Yellow Stores Store Locations London * Watford Finchley. ¢ Staples Corner Bow, cy ¢ilford 5 eng Hanger Lane Backing « ¢ Hounslow, Battersea Richmond Wandsworth + New, Malden Norwich cS Milton Keynes Cheltenham © Colchester * 5 Oxford “Luton Cade vindon * (Chelmsford © Slough. Southend Guildford
Slide 14: Funding
Funding • Bank Facilities – Current Facilities • RBS / Bank of Ireland / Barclays £150m • Morgan Stanley £16m • Net Debt £111m – Gearing • 31% gross property assets • 45% adjusted net assets • Balance sheet capacity – Interest Cover • Currently • Covenant • LTV on drawdown only • Future Funding 14
Slide 15: Conclusion
Conclusion • Current Trading • Outlook 15
Slide 16: Appendix
Appendix 16
Slide 17: 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 • May 2001 - Placing and Open Offer • June 2002 - Full listing • February 2005
Slide 18: Self-Storage Market
Self-Storage Market • The Market – US market – 39,000 stores – 1.5 billion sq ft – Occupancy range of 82-89% since 1990 – UK market – Circa 450 stores – 15 million sq ft – Potential UK market size – 1,500 stores • Key Influencers – public awareness – population mobility – physical planning and const
Slide 19: Big Yellow Model
Big Yellow Model • Develop 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 24 hours per day •
Slide 20: Operations
Operations • A Maturing Store Profile – Yield Management – Changing Room Sizes – Managing P&Ls at Store Level • Price Increases • Store Standards and Consistency – Operations Structure – Recruitment and Training – Measurement and Reward • Centralised Operating System 20
Slide 21: Sales and Marketing
Sales and Marketing • Store Promotions – Winter – Summer • Marketing – 4% of turnover – Summer TV and Radio Campaign • Customers – Business v Domestic – Profile – age, gender – How did they hear about us? – Average Length of Stay 21
Slide 22: Customer Average Length of Stay
Customer Average Length of Stay As at 30 Stores (No of Months) September 2005 < 1 Year 1-2 Years 2-5 Years >5 Years Portfolio Domestic Existing 3.1 6.2 10.4 14.8 10.9 Vacated 2.0 3.4 4.9 6.1 5.2 Total 2.7 4.5 6.4 7.8 6.7 Business Existing 2.9 7.5 12.3 17.0 13.2 Vacated 2.2 3.4 6.3 8.4 7.0 Total 2.8