Big Yellow Group Annual Report 2013

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FY2013 Annual Report · Big Yellow Group

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You can access more information about us on our website

bigyellow.co.uk

best locations

quality facilities

outstanding people

best customer service

flexible space

24 hour security

constant innovation

Big Yellow Group PLC

2 The Deans, Bridge Road,
Bagshot, Surrey GU19 5AT

Tel: 01276 470190
Fax: 01276 470191
e-mail: info@bigyellow.co.uk

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Big Yellow Group PLC
Annual Report & Accounts 2013

www.

bigyellow.co.uk

Contents

Our Strategy (Inner flap)
01 Welcome
02 Britain’s Favourite
04 Unrivalled Security
06 Business Storage
08 Customer Service
10 Green Commitment
12 Quality Stores
14 Financial Highlights
16 Chairman’s Statement
18 Business Review
24 Financial Review
30 Portfolio Summary – Wholly Owned Stores
31 Our Unrivalled Portfolio
35 Portfolio Summary – Big Yellow Limited

Partnership Stores

36 Report on Corporate Governance
43 Audit Committee Report
46 Corporate Social Responsibility Report
54 Independent Assurance Statement on the CSR Report
55 Directors’ Report
59 Remuneration Report
69 Officers and Professional Advisers
70 Biographies of Directors and Senior Management
71 Independent Auditors’ Report to the
Members of Big Yellow Group PLC
72 Consolidated Statement of Comprehensive Income
73 Consolidated Balance Sheet
74 Consolidated Statement of Changes in Equity
75 Consolidated Cash Flow Statement
Reconciliation of Net Cash Flow to Movement in Net Debt
76 Notes to the Financial Statements
101 Company Balance Sheet
102 Company Cash Flow Statement
103 Company Statement of Changes in Equity
104 Notes to the Company Accounts
ibc Ten Year Summary

Get some space in your life.™

You can access more information about us on our website

bigyellow.co.uk

best locations

quality facilities

outstanding people

best customer service

flexible space

24 hour security

constant innovation

Big Yellow Group PLC

2 The Deans, Bridge Road,
Bagshot, Surrey GU19 5AT

Tel: 01276 470190
Fax: 01276 470191
e-mail: info@bigyellow.co.uk

B
g
Y
e

l
l

o
w
G
r
o
u
p
P
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C

A
n
n
u
a

R
e
p
o
r
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&
A
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2
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Big Yellow Group PLC
Annual Report & Accounts 2013

www.

bigyellow.co.uk

Contents

Partnership Stores

Get some space in your life.™

Our Strategy

We are the market leading UK self storage REIT
with a focus on occupancy, revenue and cash flow,
driving sustainable dividend growth.
The recent equity raise has allowed the Board to accelerate
its strategy of deleveraging whilst giving the Group some
flexibility to expand its portfolio of stores and consolidate its
brand dominance in London and the South East. It also enables
us to increase the dividend payout ratio as we believe that
income is viewed by our shareholders as an important
component of their total return.

Business Model
R High barriers to entry, with limited supply coming onto the market
R Growing demand and awareness
R Low obsolescence and low ongoing maintenance capex
R Market leading brand
R Freehold portfolio
R High operating margins, from larger average store size
R Strong cash flow
R London and South East focus
R Growing earnings each year

(14% annual compound growth over the last four years)

R 19 months average length of stay for existing customers
R Very low bad debt record (0.17% of revenue in year)
R Diversified tenant risk (38,500 customers)

90%

55%

14%

of revenue from London

unprompted brand

compound EPS growth

and the South East

awareness in London

over the last four years

Ten Year Summary
Year ended 31 March 2013

2013
£000

2012
£000

2011
£000

2010
£000

2009
£000

2008
£000

2007
£000

2006
£000

2005
£000

2004
£000

69,671

65,663

61,885

57,995

58,487

56,870

51,248

41,889

33,375

23,830

37,454

35,079

32,058

29,068

30,946

29,342

27,067

21,645

15,030

4,719

Results
Revenue

Operating profit before
gains and losses on
property assets

Cash flow from

operating activities

30,186

27,388

23,534

19,063

10,203

14,388

16,726

16,125

9,664

5,761

Profit/(loss) before

taxation

Adjusted profit before

31,876

(35,551)

6,901

10,209

(71,489)

102,618

152,837

118,547

42,836

1,243

taxation

25,471

23,643

20,207

16,514

13,791

15,006

14,233

12,601

7,791

n/d

Net assets

552,628

494,500

544,949

547,285

502,317

580,886

487,979

244,139

159,168

58,391

EPRA earnings
per share

Declared total

19.3p

18.2p

15.5p

13.0p

11. 9p

11.7p

10.0p

8.9p

5.5p

n/d

dividend per share

11.0p

10.0p

9.0p

4.0p

9.5p

9.0p

5.0p

2.0p

1.05p

Key statistics
Number of
stores open*

Sq ft occupied (000)*
Occupancy growth
in year 000 sq ft)*

Number of customers*
Average no. of
employees during
the year

66
2,632

65
2,458

62
2,130

60
1,915

54
1,775

48
1,850

43
1,835

37
1,672

32
1,470

29
1,268

174
38,500

328
36,300

215
32,800

140
30,500

(75)
28,500

15
30,500

163
30,100

202
27,800

202
24,600

393
20,400

286

279

273

252

239

218

191

178

160

140

* – includes stores operating in Big Yellow Limited Partnership
Results to 2004 under UK GAAP, 2005 onwards under IFRS.
n/d – measure not disclosed in that year

The paper used in this report is produced with FSC® mixed sources pulp which is partially recyclable, biodegradable,
pH Neutral, heavy metal absence and acid-free. It is manufactured within a mill which complies with the international
environmental ISO 14001 standard.

CPI Colour is FSC certified, PEFC certified and ISO 14001 certified showing that it is committed to all round
excellence and improving environmental performance is an important part of this strategy. We aim to reduce
at source the effect our operations have on the environment, and are committed to continual improvement,
prevention of pollution and compliance with any legislation or industry standards.

CPI Colour is a Carbon Neutral Printing Company.

Designed and produced by MAGEE
www.magee.co.uk

Printed by CPI Colour

Our Strategy

(14% annual compound growth over the last four years)

R 19 months average length of stay for existing customers
R Very low bad debt record (0.17% of revenue in year)
R Diversified tenant risk (38,500 customers)

90%

55%

14%

of revenue from London

unprompted brand

compound EPS growth

and the South East

awareness in London

over the last four years

Ten Year Summary
Year ended 31 March 2013

2013
£000

2012
£000

2011
£000

2010
£000

2009
£000

2008
£000

2007
£000

2006
£000

2005
£000

2004
£000

69,671

65,663

61,885

57,995

58,487

56,870

51,248

41,889

33,375

23,830

37,454

35,079

32,058

29,068

30,946

29,342

27,067

21,645

15,030

4,719

Results
Revenue

Operating profit before
gains and losses on
property assets

Cash flow from

operating activities

30,186

27,388

23,534

19,063

10,203

14,388

16,726

16,125

9,664

5,761

Profit/(loss) before

taxation

Adjusted profit before

31,876

(35,551)

6,901

10,209

(71,489)

102,618

152,837

118,547

42,836

1,243

taxation

25,471

23,643

20,207

16,514

13,791

15,006

14,233

12,601

7,791

n/d

Net assets

552,628

494,500

544,949

547,285

502,317

580,886

487,979

244,139

159,168

58,391

EPRA earnings
per share

Declared total

19.3p

18.2p

15.5p

13.0p

11. 9p

11.7p

10.0p

8.9p

5.5p

n/d

dividend per share

11.0p

10.0p

9.0p

4.0p

9.5p

9.0p

5.0p

2.0p

1.05p

Key statistics
Number of
stores open*

Sq ft occupied (000)*
Occupancy growth
in year 000 sq ft)*

Number of customers*
Average no. of
employees during
the year

66
2,632

65
2,458

62
2,130

60
1,915

54
1,775

48
1,850

43
1,835

37
1,672

32
1,470

29
1,268

174
38,500

328
36,300

215
32,800

140
30,500

(75)
28,500

15
30,500

163
30,100

202
27,800

202
24,600

393
20,400

286

279

273

252

239

218

191

178

160

140

* – includes stores operating in Big Yellow Limited Partnership
Results to 2004 under UK GAAP, 2005 onwards under IFRS.
n/d – measure not disclosed in that year

CPI Colour is a Carbon Neutral Printing Company.

Designed and produced by MAGEE
www.magee.co.uk

Printed by CPI Colour

Welcome

We are the innovative leaders in the UK self storage industry

providing individuals and businesses with an unrivalled

product – the best locations, the best quality facilities and

the strongest brand.

We have great people who deliver the best customer

service. We achieve this because we encourage a culture

of partnership within the business and reward our people

for their contribution.

“

We ha ve delivered a gain st our principal
financial aims of growin g cash flow,
ea rn in gs and dividend.
“

Our Strategy

and Business Model

We are

Britain’s Favourite

# 1 … Our UNRIVALLED SECURITY

# 2 … Our BUSINESS FRIENDLY SERVICE

# 3 … Our FOCUS ON CUSTOMER SERVICE

# 4 … Our GREEN COMMITMENT

# 5 … Our PORTFOLIO OF QUALITY STORES

“

The customer is a t the hea rt
of everythin g we do.
“

t a i n ’ s
i
B r
t e
i
f a v o u r
s t o r a g e
f
s e l
c o m p a n y

Over the following pages we outline the core

qualities of our business. We invite you to take a

closer look and learn exactly why we are recognised

as Britain’s favourite self storage company.

The best stores offering

Unrivalled Security

We provide the highest levels of security in the
UK self storage industry. We have invested
significantly to ensure our customers
enjoy peace of mind.

We are the only major UK operator where
every room in every store is individually
alarmed.

Secure perimeter fencing, electronic coded gates,
intruder alarms, PIN code entry and CCTV which
is externally monitored 24 hours a day, provide
additional levels of security for our customers.

The importance of security and the need for
vigilance is communicated to all store staff
and reinforced through regular training.

“

The facility is very clean and secure. I was very
impressed with the security fea tures, which made me
feel good about storin g my thin gs there. Overall I
think it is an excellen t store and would defin itely
recommend it to others.
“

Renee, customer at Big Yellow Kingston

Totally flexible

Business Storage

bigyellow.co.uk/business

We give businesses room to grow because
our storage services are tailored to their
exact requirements.

Businesses across the UK choose Big Yellow
because we offer:

> Flexible space ranging from 10 sq ft to 5,000 sq ft

> No business rates, utility charges or additional

overheads to pay

> Store from as little as seven days

> No complex leases to sign

> Out of hours access

> Secure storage with perimeter fencing,
PIN code access, individually alarmed
rooms and 24 hour digital CCTV

> Easily accessible locations off main roads

> Large loading bays, trolleys, pallet trucks

and fork lifts

> Staff on hand 7 days a week

> National accounts for easier management

Multi-Site Storage: The benefits of national account storage
include a dedicated account manager, single master contract and

monthly billing covering all locations.

Business Services: Our large car parks, easy main road access,
loading bays, pallet trucks and fork lift service make us an attractive choice

for businesses.

Storage: Our storage rooms allow greater freedom for
businesses, without compromising on security and cost.

Offices: Providing a hub for businesses, our office
spaces offer flexible leases, free parking and include rates.

eTail Storage: For eBay, Amazon and online sellers, self
storage is a flexible way for online businesses to grow without the

restraints of warehousing.

Archiving: Providing a secure place for businesses to store tax
records and legal files which they can access with ease.

Warehouse: We provide space up to 5,000 sq ft and can also create
bespoke large space to fit the exact requirements of any business.

“

I ha ve used Big Yellow since I sta rted
my busin ess two yea rs a go and it helped
me to get my busin ess off the ground
without an y big commitmen ts and overheads.
The service from the staff has been grea t
and I love the fact tha t they a re there
“
to help you get on with your busin ess.

Business customer, at Big Yellow Staples Corner

Our focus on

Customer Service

At Big Yellow, we recruit, motivate and develop
outstanding people.

The wellbeing of our staff is important to us and
we provide an enjoyable working environment
without losing our commitment to delivering the
very best standards of customer service. A continuous
investment in training and encouraging a culture
of partnership through bonus and incentive schemes
is critical to our continued success of delivering
unrivalled customer service.

We work hard to understand our customers’ storage
requirements and give the best service possible
whether it is face to face, over the phone or through
our user friendly website and mobile site.

Our customer support centre is on hand seven days
a week to provide an additional layer of customer
service. All calls are answered promptly and the
customer support team take the time to talk people
through our service, provide quotes and answer
any questions.

Customer reviews are also published on the
website and show an extremely high level of
satisfaction with an average customer service
score of 4.8 out of 5.

“

The staff a re very happy to help and go out
of their wa y to en sure you ha ve a grea t
experience, and nothin g is too much trouble.
The advice they ga ve on the space required
was in valuable.

Reuben, customer at Big Yellow Poole

“

> We put the customer at the heart of our business.

> We are someone our customers can trust.

> We are proud of our people and they are integral to the success of our company.

A big

Green Commitment

At Big Yellow, we know the most important space
of all is the environment that surrounds us. That’s
why we continue to work hard to create an environmentally
friendly business.

Our CSR policy
Big Yellow leads the way in sustainable real estate.
Big Yellow’s CSR policy aims to strike the balance
between its social, economic and environmental
responsibilities as an owner, operator and developer
of self storage buildings. In order to maintain a
sustainable business for its customers, staff and
investors, the Board has committed significant
resources to the social and environmental aspects
of its operations.

Carbon reduction
From an environmental perspective, our store
operations and construction energy emissions,
also known as our ‘carbon footprint’ has been
identified as our most significant impact. Carbon
reduction has benefited from our portfolio of purpose
built, well insulated stores. These buildings do not
require heating and cooling in over 97% of their
area. Energy efficient design and specifications
and onsite renewable energy generation through
solar photovoltaic panels and ground source
heat pumps reduced energy grid supply and
carbon emissions.

126%

25%

10.3%

increase in income

reduction in carbon

reduction in electricity

generated from

emissions compared to

use carbon emissions

solar panels

revenue growth

Find out more at bigyellow.co.uk/green

> 15 stores have rooftop solar panels generating

clean energy

> Energy efficient, motion-sensor lighting saves 30%

electricity use

> LED lighting for our external signage is 60% more

energy efficient than previous lighting

> Ground source heat pumps have been installed

at some stores

> Green roofs provide a valuable layer of insulation

and a welcome habitat for local wildlife

> We use sustainably manufactured building materials

where possible. Our steel partitioning is made from
40-60% recycled steel and our floor from 80% recycled
sawdust and bark particle board

> Green training to our staff helps us reduce, re-use
and recycle waste as effectively as possible

Packaging: Our packaging is manufactured with
a high recycled content.

Green Investment: Our commitment to CSR has been
established through green building design, specification and

operational management.

Our portfolio of

Quality Stores

With 66 easy to find, high profile locations around
the UK, we have an unrivalled portfolio of stores
across London, the South East and large
metropolitan cities.

Our customers like our modern, highly visible,
purpose built stores which are situated in safe
and easily accessible locations.

In the year we opened our Chiswick store situated
next to the M4 flyover in London. This and our
other high profile store locations contribute
to the growing awareness of self storage and
our brand.

I've been 100% impressed with Big Yellow.
The facilities a re excellen t - clean, bright
and easy to access. The a ttitude of all of
the staff has been brillian t a t all times.
Very friendly and helpful.

Helen, customer at Big Yellow Bristol Ashton Gate

“

DUNDEE

EDINBURGH

“

66 easy to find,
high profile loca tion s
provide con ven ience
for customers and
unmissable exposure
for the Big Yellow
brand.
“

> Outside London

– 32 stores and sites

STOCKTON

LEEDS

HULL

LIVERPOOL NORTH
LIVERPOOL
LIVERPOOL SOUTH

MANCHESTER

STOCKPORT

SHEFFIELD HILLSBOROUGH
SHEFFIELD WESTBAR
SHEFFIELD PARKWAY
SHEFFIELD BRAMALL LANE

STOKE-ON-TRENT

NOTTINGHAM

DERBY

NORWICH

BIRMINGHAM

PETERBOROUGH

MILTON KEYNES

LUTON

COLCHESTER

CHELMSFORD

OXFORD

HIGH WYCOMBE

CHELTENHAM

GLOUCESTER

CARDIFF

BRISTOL CENTRAL

SWINDON

READING

SLOUGH

London
London

SOUTHEND

BRISTOL
ASHTON GATE

CAMBERLEY

GUILDFORD
GUILDFORD CENTRAL

TUNBRIDGE WELLS

WATFORD

ENFIELD

NORTH FINCHLEY

EDMONTON

A1(M)
STAPLES CORNER

EAST FINCHLEY

HANGER LANE

EALING

ROMFORD

ILFORD
BARKING

BOW

DAGENHAM

M40

HOUNSLOW

CHISWICK

ACTON

NORTH KENSINGTON

FULHAM

KENNINGTON

RICHMOND

TWICKENHAM

SHEEN

BATTERSEA

NEW CROSS

KINGSTON
NEW MALDEN

TOLWORTH

WANDSWORTH

MERTON

BALHAM

ELTHAM

WEST NORWOOD

BECKENHAM

BROMLEY

BYFLEET

SUTTON

CROYDON

ORPINGTON

M20

PORTSMOUTH

BRIGHTON

POOLE

KEY

54 Wholly owned stores

4 Wholly owned stores
under development

12 Stores trading
in Big Yellow Limited Partnership

10 Managed Armadillo stores

> London

– 38 stores and sites

Another year of earnings growth

VAT Impact Absorbed

Financial metrics

Revenue
Adjusted profit before tax(1)
Adjusted EPRA earnings per share(2)
Dividend – final
– total

Adjusted NAV per share(3)
Cash flow from operating activities (after finance costs)

Store metrics
Occupancy growth – all stores
Occupancy growth – wholly owned stores
Occupancy – like for like wholly owned stores
Like for like revenue per available foot(4)

Statutory metrics
Profit/(loss) before tax
Basic earnings/(loss) per share

Year ended

31 March

2013

£69.7m
£25.5m
19.3p
6p
11p
419.2p
£30.2m

Year ended

31 March

2012

£65.7m
£23.6m
18.2p
5.5p
10p
422.7p
£27.4m

174,000 sq ft
90,000 sq ft
65.6%
£20.25

328,000 sq ft
218,000 sq ft
63.5%
£19.43

£31.9m
24.4p

(£35.6m)
(27.7p)

6
8
6
9
10
(1)
10

Highlights

> Revenue up 6% and VAT impact absorbed

> Another year of cash flow, earnings and dividend growth

> Successful completion of refinancing coupled with placing has improved the Group’s

capital structure

> Reduction of Group net debt(5) by £43.5 million to £230.5 million

> Opening of our iconic store in Chiswick, West London, with high visibility from the

M4 flyover

> Disposal of surplus sites for combined £15.8 million

> Survey confirms national brand leadership

1 See note 10 2 See note 12 3 See notes 12 and 14 4 See Portfolio Summary 5 See note 18

“

It is clea r to us tha t lower gea red
busin esses, both opera tionally and financially,
outperform over the lon ger term. Accordin gly,
on e of the key tasks for your mana gemen t
since 2007 has been to crea te a capital
structure reflective of those views.
“

> Occupancy growth of 174,000 sq ft
across all stores (2012: growth of
328,000 sq ft)

174,000 sq ft

> Revenue for the year up 6% to

£69.7 million (2012: £65.7 million)

£69.7m

> Adjusted profit before tax of £25.5
million up 8% (2012: £23.6 million)

> Diluted EPRA earnings per share up 6%
to 19.3 pence (2012: 18.2 pence)

£25.5m

19.3p

> Full year dividend of 11 pence per share

> Cash inflows from operating activities

declared (2012: 10 pence per share)

11p

increased by 10% to £30.2 million
(2012: £27.4 million)

£30.2m

’

B
R
I
T
A
N
S
F
A
V
O
U
R
I
T
E

Revenue and earnings

Growth

We have committed to increasing the dividend payout to
80% of adjusted earnings per share commencing with the
next interim dividend.

Chairman’s Statement

Big Yellow Group PLC (“Big Yellow”, “the Group” or “the Company”),
the UK’s brand leader in self storage, is pleased to announce results
for the fourth quarter and the year ended 31 March 2013.

We achieved a solid level of revenue growth, despite the imposition
of VAT, and have also delivered against our principal financial aims
of growing cash flow, earnings and dividend. This is testament to
our successful operating model with a strong brand, market-leading
digital platform and our focus on large metropolitan areas,
particularly in London and the South East.

We made a strong start to the year with significant occupancy
growth in the first half (our seasonally strongest period), as we
additionally benefited from the increased business and consumer
confidence in the lead-up to the Olympics.

The seasonally weaker quarter to December was further impacted by
a combination of a softening in the macroeconomy in the period after
the Olympics, and price increases to our domestic customers of 10%
or 12.5% as a result of the imposition of VAT on our storage rents from
1 October. By the beginning of the fourth quarter, the environment
had stabilised and we saw a return to growth in net occupancy.

The Big Yellow model has proved to be relatively resilient and we
have now successfully embedded VAT into our business. As we only
partially passed VAT onto our domestic customers there was an
anticipated impact in the second half on our net achieved rents.
We are now focused on rebuilding the yield and growing occupancy
in the year ahead.

Financial results
Revenue for the year was £69.7 million (2012: £65.7 million), an
increase of 6%; store revenue increased by 6% to £68.3 million
(2012: £64.3 million). EBITDA for the 54 wholly owned stores
increased by £3.4 million (8%) to £44.1 million. The 53 wholly owned
stores open at 1 April 2012 have grown in occupancy from 63.5% to
65.6% at 31 March 2013.

Store revenue for the fourth quarter decreased by 1% to £15.9 million
from £16.1 million for the same quarter last year. Store revenue
in the second half of the year was £32.8 million, up 1% from
£32.4 million for the second half of the year ended 31 March 2012.

Cash inflows from operating activities (after finance costs)
increased by £2.8 million (10%) to £30.2 million for the year
(2012: £27.4 million).

The Group made an adjusted profit before tax in the year of
£25.5 million (2012: £23.6 million). This translated into a 6%
increase in adjusted earnings per share to 19.3p (2012: 18.2p).

The Group made a statutory profit before tax for the year of
£31.9 million, compared to a loss of £35.6 million last year. The prior
year loss reflected the decrease in the valuation of the Group’s open
stores principally caused by the valuer’s assessment of the impact
of the imposition of VAT on self storage from 1 October 2012. The
valuation of the investment property portfolio in the year is broadly
in line with the prior year.

The Group has reduced its gearing further this year and now has net
bank debt of £230.5 million at 31 March 2013 (2012: £273.9 million).
This represents approximately 30% (2012: 35%) of the Group’s gross
property assets totalling £767.5 million (2012: £778.3 million) and
39% (2012: 49%) of the adjusted net assets of £594.5 million (2012:
£559.0 million).

The Group’s income cover for the year expressed as the ratio of
Group’s adjusted EBITDA post administrative expenses to net interest
payable was 3.3 times (2012: 3.1 times).

Placing
For some time, the Company has set out a clear financial strategy
to reduce debt and achieve pre-interest cash flow cover of at least
four times the annual interest cost. The placing of 10 million shares
in January at £3.70, raising £35.8 million (net of expenses),
has allowed us to accelerate this plan. We have committed to
increasing the dividend payout to 80% of adjusted earnings per
share commencing with the next interim dividend. In addition, it has
given us flexibility to expand our portfolio of stores, and we intend to
open our prominent Gypsy Corner site on the A40 in West London in
April 2014.

Refinancing
We are pleased to have successfully concluded the refinancing of the
Group’s debt facilities with a new 15 year £100 million facility with
Aviva and the four year £190 million refinancing to September 2016
with our existing senior debt providers, Lloyds TSB, HSBC and
Santander. As part of this refinancing we cancelled £120 million of
interest rate derivatives at a cost of £10.5 million (£9.2 million of
this cost was in the first half of the year, with the balance incurred in
October). Since the placing we have repaid £43 million of debt, and
cancelled £35 million of our bank facilities, saving £0.3 million per
annum in non-utilisation fees. Our weighted average cost of debt for
the second half of the year increased from 3.8% to approximately
4.25%. In October 2012 the expiry of the £60 million Big Yellow
Limited Partnership bank facility was extended to September 2016.

“

Whilst there remain challen ges, we allow
ourselves for the first time in a few yea rs,
to enjoy a little more optimism.
“

Property
Our landmark store on the A4 in Chiswick, West London opened in
April 2012. We have a pipeline of four wholly owned development
sites; all have planning consent, bar our site in Central Manchester.

The three development sites with planning consent at Enfield,
Guildford Central and Gypsy Corner, have an estimated cost to
complete of £14.3 million excluding VAT. We have committed to the
construction of Gypsy Corner, which we anticipate opening in April
2014. The remaining two sites with planning will be constructed on
a phased basis.

During the year we sold our surplus one acre site adjacent to
our new flagship Chiswick store for £4.8 million. We also sold our
surplus site at South Bow for £3.6 million, and received the further
consideration of £7.4 million from the disposal of the Premier Inn
hotel we developed at Richmond. The proceeds were deployed to
reduce the Group’s debt. These sales have largely completed our
surplus asset disposals, with the Group owning £4.6 million of land
surplus to our requirements across two sites at 31 March 2013. We
aim to sell this remaining surplus land once we have maximised its
value through planning.

We continue to monitor site acquisition opportunities, principally
focussed in London.

Dividend
The Board is recommending the payment of a final dividend of
6 pence per share, taking the total dividend declared for the year
to 11 pence per share (31 March 2012: 10 pence per share).

The cash dividend payment is two times covered by our free
cash flow.

Our people
Our strong performance during the year was driven by the continued
efforts and loyalty of the Big Yellow team, both at head office and in
the stores, and they remain pivotal to the achievement of our key
medium term objectives of driving occupancy, revenue, and cash
flow growth.

Board
Philip Burks, a co-founder of the business in September 1998, will
be retiring from his current role as a Non-Executive Director at the
Group’s next Annual General Meeting on 19 July 2013. Georgina
Harvey will be appointed to the Board as an independent Non-
Executive Director from 1 July 2013.

Philip and I started work together in 1986 and have been in
partnership now for over 25 years. It has been the best of
partnerships. Without Philip’s property skills and tenacity, Big Yellow
could not have achieved a fraction of its successes. The Board joins
me in wishing him the best for the future.

We are delighted to welcome Georgina to the Board. Georgina brings
extensive and diverse experience from the worlds of traditional and
digital media, retail and leisure. As Big Yellow’s fortunes increasingly
lie with the internet, her experience will be of great value.

Outlook
We believe that REITs should enjoy similar characteristics to
property as an investment medium, with the defensive qualities of
fixed income, and the upside benefits of equity. Those intrinsic
features of property have been distorted in the recent past by
excessive debt, which by definition has over-accentuated the equity
characteristics, the cause of much of the volatility in the direct and
indirect property market.

It is clear to us that lower geared businesses, both operationally and
financially, outperform over the longer term. Accordingly, one of the
key tasks for your management since 2007 has been to create a
capital structure reflective of those views.

Although we think that ideally Big Yellow would benefit from still lower
proportionate levels of debt, we are satisfied that as a minimum our
core ambition in this respect has been achieved, following the growth
in cash flows, the two refinancings, and the equity raise.

This improved capital structure allows us to fully focus on the upside
potential in our business. In that respect much has been achieved
since 2007; 23 new purpose-built stores have been opened, significant
operational improvements have been made, and the brand has
emerged as the unquestionable market leader.

This makes us confident that, on a medium to long term view, we will
deliver substantially more of our full potential as we build occupancy
and yield in our stores. The pace at which this will be achieved will
depend in part on external factors, including the wider economy,
housing transactions, new business formation and investment. Whilst
there remain challenges around these factors, we allow ourselves for
the first time in a few years, to enjoy a little more optimism.

Nicholas Vetch
Chairman
20 May 2013

Continued growth in

Occupancy

Self storage income is largely evergreen with highly
defensive characteristics driven from buildings with
very low obsolescence.

Business Review

Introduction
Given the continued muted economic background, the 6% revenue
growth achieved year on year is a creditable performance,
particularly as we faced the additional headwind of absorbing VAT
into our business in the second half of the year.

We continue to believe that the medium term opportunity to create
shareholder value will be principally achieved by leasing up stores to
drive revenue, the majority of which flows through to the bottom line
given that our operating and central overhead costs are already
largely embedded.

The location of our stores, strong brand, unrivalled security and most
importantly, excellent customer service attracts and retains a loyal
and diverse customer base.

Self storage income is largely evergreen with highly defensive
characteristics driven from buildings with very low obsolescence.
Although our contract with customers is in theory as short as a week,
we do not need to rely on contract length for income security. At
31 March 2013 the average length of stay for existing customers was
18.9 months, in line with the prior year. For the stores open more than
five years, the average length of stay increases to 21.3 months. For all
customers, including those who have moved out of the business, the
average length of stay has remained at 8.4 months. This translates into
a loyal customer base. In our 32 established store portfolio, 36% of our
customers by occupied space have been storing with us for over three
years. A further 15% of customers in these stores have been in the
business for between one and three years.

Awareness of self storage will continue to grow as more businesses
and individuals use the product at a time when the supply side is
restricted, with very few store openings expected in the calendar year.

Store performance
Self storage is a dynamic business, and in any month, customers
move in and out at the margin resulting in changes in occupancy.
We had a very strong quarter to June with good net move-in growth.
The second quarter peaks in August and then we see many of our
students and short term house moves start to vacate in September,
leading to a relatively flat quarter. The third quarter saw a fall in the
pace of move-in growth of 5% compared to the prior year, whilst
move outs were up 13% reflecting continuing student and house
move vacations, coupled with some impact from the imposition of
VAT, leading to a significant net loss in units occupied and sq ft. In the
final quarter we have seen a return to growth in net occupied rooms
and increased occupancy in the wholly owned stores by 52,000 sq ft.
The table below illustrates the occupancy growth performance in
the year.

Wholly owned
store move-ins

Year ended
31 March
2013

Year ended
31 March
2012

April to June
July to September
October to December
January to March

13,844
14,973
10,738
11,047

11,081
12,661
10,195
10,149

Net
% move-ins

25%
18%

3,445
(410)
5% (2,354)
544
9%

Total

50,602

44,086

15%

1,225

Store revenue for the year grew by 6%, feeding through to an 8%
improvement in adjusted profit and a 10% increase in operating cash
flow. This improvement in earnings has been achieved after absorbing
the impact of VAT and a higher interest cost in the second half following
the completion of the Group’s refinancing in October.

In all Big Yellow stores, the occupancy growth in the current year was
174,000 sq ft, against an increase of 328,000 sq ft in the prior year.
This growth across the 54 wholly owned and 12 stores in the
Partnership represents an average of 2,636 sq ft per store (2012:
5,046 sq ft per store).

During the year we opened our wholly owned flagship store in
Chiswick, West London. The store has started encouragingly, with over
25,000 sq ft of occupancy already added. This opening brings the
number now trading in the Group and the Partnership to 66 stores.

Store occupancy summary

Occupancy Occupancy
31 March
2012
000 sq ft

31 March
2013
000 sq ft

Growth for
year to
31 March
2013
000 sq ft

Growth for
year to
31 March
2012
000 sq ft

32 established stores
22 lease-up stores
Total – 54 wholly
owned stores

12 Partnership

lease-up stores

1,413
810

1,442
691

(29)
119

2,223

2,133

Total – all 66 stores

2,632

2,458

409

325

174

61
157

218

110

328

The 54 wholly owned stores had a net gain in occupancy of 90,000
sq ft, representing an average of 1,666 sq ft per store. This compares
to an overall gain in the wholly owned stores of 218,000 sq ft in the
year to 31 March 2012, and a gain of 117,000 sq ft in the year to
31 March 2011. The 12 stores in the Partnership, which are at an
earlier stage of lease-up, increased their occupancy by 84,000 sq ft,
representing average growth of 7,000 sq ft per store.

Our key focus over the next two to three years remains to drive
occupancy and hence revenue in the stores. As the stores lease up,
and the number of vacant rooms reduce, our pricing model will
automatically reduce the level of discounts offered, leading to an
increase in net achieved rents. In our higher occupancy stores, we
have historically seen net rental growth of 4 to 5% in a year. This year
was affected by the introduction of VAT as previously explained.

The 32 established stores are 72.8% occupied compared to 74.3% at
the same time last year. The 22 lease-up stores have grown in
occupancy from 48.8% to 54.3%, and overall store occupancy has
increased in the year from 63.5% to 64.8%. Like for like occupancy,
excluding Chiswick which opened in the year, increased from 63.5%
to 65.6%.

The established stores grew in occupancy to 77.0% at September 2012,
which was higher than in September 2011. The fall in occupancy over
the second half of the year was higher than in prior years, which
reflects the same factors as mentioned above for the portfolio as a
whole, but in addition, this portfolio may have been impacted by the
imposition of VAT, which is likely to have caused some longer stay
customers to re-evaluate their storage requirements.

All 54 wholly owned stores, and all twelve stores within Big Yellow
Limited Partnership, open at the year end are trading profitably at
the EBITDA level.

74% of our current store revenue derives from within the M25; for
the South East, the proportion of current store revenue rises to 90%.
REVPAF performance of our stores in London has been more resilient
over the downturn than in the regions.

Pricing and rental yield
In anticipation of the introduction of VAT, we successfully increased
our yield in the first half of the year by 1.8% from 31 March 2012.
However, given the decision not to pass all of the VAT on to our
domestic customers the Group’s achieved net rent fell by 5.6% at the
beginning of October. Over the second half of the year net rent fell by
a further 3% to £24.65 at 31 March 2013 as industry asking prices
adjusted to VAT, and we had suspended our rolling price increase
programme to existing domestic customers.

Average rents were therefore lower in the second half of the financial
year. At the end of March we increased the standard rates in all
stores, and recommenced our existing customer price increase
programme. Since the year end the Group’s net achieved rent per
sq ft has increased by 2.5%.

Store operations
The Big Yellow store model is well established. The “typical” store has
60,000 sq ft of net lettable storage area and takes some 3 to 5 years
to achieve 70% to 80% plus occupancy in the current economic
environment. Some stores have taken longer than this given they
opened just before or during the downturn. The average room size
occupied in the portfolio is currently 68 sq ft, an increase from
66 sq ft in the prior year.

The store is open seven days a week and is initially run by three staff,
with a part time member of staff added once the store occupancy
justifies the need for the extra administrative and sales workload.

Given that the operating costs of these assets are relatively fixed,
larger stores in bigger urban conurbations, particularly London, drive
higher revenues and higher operating margins. The table below
illustrates the average key metrics across the store portfolio for the
year ended 31 March 2013:

Store capacity
Sq ft occupied per store at
31 March 2013
% occupancy
Revenue per store
EBITDA per store

32 Established
stores

22 Lease-up
stores

60,656

67,773

44,156
72.8%

36,818
54.3%
£1,379,000 £1,100,000
£665,000

£922,000

EBITDA margin

66.8%

60.5%

Like for like revenue per available square foot (“REVPAF") across the
wholly owned portfolio, excluding the 75,000 sq ft store at Chiswick,
which opened in April 2012, increased from the last year by 4.2% to
£20.25 (2012: £19.43).

The average store size in the UK market is approximately 40,000 sq ft
according to the 2013 Self Storage Association Survey. The upside
from filling our larger than average sized stores is, in our view, only
possible in large metropolitan markets, where self storage demand
from domestic and business customers is at its highest.

“

Our unprompted brand a wa ren ess in
London is 55% which is 6 times higher
than our n ea rest competitor.
“

Business Review (continued)

Of the customers moving into our stores in the last year, surveys
undertaken indicate approximately 50% are linked to the housing
market, of which 11% are customers renting storage space whilst
using the rental sector, and 39% moving within the owner occupied
sector. During the year 12% of our customers who moved in took
storage space as a spare room for decluttering and approximately
25% of our customers used the product because some event has
occurred in their lives generating the need for storage; they may be
moving abroad for a job, have inherited furniture, are getting married
or divorced, are students who need storage during the holidays, or
homeowners developing their lofts or basements. The balance of 13%
of our customer demand in the year came from businesses. There
has been an increased in demand in the current year from
businesses and students.

Our business customers range across a number of industry types,
such as retailers, professional service companies, hospitality
companies and importers/exporters. These businesses store stock,
documents, equipment, or promotional materials all requiring a
convenient flexible solution to their storage, either to get started or
to free up more expensive space.

We have a dedicated national accounts team for business customers
who wish to occupy space in multiple stores. These accounts are
billed and managed centrally. We have three full time members of
staff working on growing and managing our national account
customers. The national accounts team can arrange storage at short
notice at any location for our customers.

Business customers typically stay longer than domestic customers,
and also on average occupy larger rooms. Whilst only representing
13% of new customers during the year, businesses represent 18% of
our overall customer numbers, occupying 34% of the space in our
stores. The average room size occupied by business customers is
125 sq ft, against 55 sq ft for domestic customers.

We have seen solid demand from business customers, as they seek
a cost effective, flexible solution to their storage requirements,
preferring self storage to the commitment of a long lease. We believe
there is an opportunity to grow business occupancy and national
accounts in the coming year, and we have improved our business
offer further, we have increased the resource of our national
accounts team, and are increasing our marketing to that space to
drive business prospects.

The split between business and domestic customers for the 54
wholly owned stores is as follows:

Sq ft
occupied at
31 March
2013

No of
customers at
31 March
2013

% of storage
revenue at
31 March
2013

Business
customers
Domestic
customers

747,000

34%

6,046 18%

27%

1,476,000

66%

27,487 82%

73%

Total

2,223,000

33,533

100%

The net rent per sq ft for domestic customers is approximately 33%
higher than for business customers, reflecting the smaller average
unit size occupied by domestic customers.

For the 32 established stores, the average split between business
and domestic customers is shown in the table below.

% of occupied space
Sq ft occupied per store

Domestic

Business

66.1%

33.9%

Total

100%

at 31 March 2013

29,187

14,969

44,156

The drive to improve store operating standards and consistency
across the portfolio remains a key focus for the Group. Excellent
customer service is at the heart of our business objectives, as a
satisfied customer is our best marketing tool. We measure customer
service standards through a programme of mystery shoppers and
online customer reviews, which give an average customer service
score of 4.8 out of 5. We have recently launched a new improved
customer-experience programme which combines the feedback from
mystery shopping and customer reviews into the reinforcement of
customer focus in our store operations.

We have a team of Area Managers in place who have on average worked
for Big Yellow for ten years. They develop and support the stores to
drive the growth of the business. Adrian Lee, Operations Director, is the
Board member responsible for dealing with all customer issues.

The store bonus structure rewards occupancy growth, sales growth
and cost control through setting quarterly targets based on occupancy
and store profitability, including the contribution from ancillary sales of
insurance and packing materials. Information on bonus build up is
circulated monthly and stores are consulted in preparing their own
targets and budgets each quarter, leading to improved visibility, a
better understanding of sales lines and control of operating costs.

80%

55%

38%

prompted brand

unprompted brand

online market share of

awareness in London

web visits (April 2013)

We believe that as a customer-facing branded business it is
paramount to maintain the quality of our estate and customer
offering. We therefore continue to invest in a rolling programme of
store makeovers, preventative maintenance, store cleaning and the
repair and replacement of essential equipment, such as lifts and
gates. The ongoing annual expenditure is approximately £30,000 per
store, which is included within cost of sales. This excludes makeovers,
which typically take place every four years, at a cost of approximately
£15,000 to £20,000 per store.

We have continued to manage the ten freehold stores branded as
Armadillo Self Storage alongside our Big Yellow stores using the same
operating model. The management contract expires in February 2014
and our key objective within the Armadillo portfolio remains driving
occupancy, revenue and cash flow.

Marketing and eCommerce
This year our strategy continues to focus on driving customer
response through our online platforms, whilst keeping the customer
at the heart of the business.

Our YouGov surveys, which we have commissioned every year for
the last seven years allow us to monitor our brand awareness. Our
most recent survey conducted in April 2013 used a larger, more
statistically robust sample size of 1,312 respondents in London and
2,149 for the rest of the UK. The survey showed our prompted
awareness to be at 80% in London and 41% for the rest of the UK,
both nearly three times the level of our nearest competitor.

For unprompted brand awareness, our recall in London was 55%, and
20% for the rest of the UK, both of which are over six times higher
than our nearest competitor. These surveys continue to prove we are
the UK’s brand leader in self storage, (Source: YouGov, April 2013).

Online
The website continues to grow in strength, with online prospects now
accounting for 83% of all sales leads where details are first recorded
on our operating system. Telephone is the first point of contact for
10% of prospects and walk-in enquiries, where we have had no
previous contact with a prospect, represent 7%.

We have by far the largest online market share of web visits to all self
storage company websites in the UK. In April 2013, our online market
share of web visits was at 38.7% and the next nearest competitor
was at 14.5% (source: Experian Hitwise).

The Big Yellow website continues to evolve and we are constantly
improving the user journey and prospect conversion throughout
the site. Web analytics allow us to remove barriers to conversion
in the web journey and to test new web page designs which can
help increase conversion.

Mobile
Web traffic from mobile devices accounted for 35% of our total
web visits in March 2013. This is a significant increase from 19%
in March 2012. Mobile devices include both smart phones and
the growing use of tablets and we ensure our website and email
communications are optimised for all of these devices.

Green Page
We have created a unique, interactive web section which
tells the story of our “big green commitment” to our web
visitors and existing consumers. This online page, found at
bigyellow.co.uk/green, highlights the initiatives we have
taken with our buildings and operations to ensure we remain
an environmentally sustainable company.

Online customer reviews
Consistent with our strategy of putting the customer at the heart
of our business, our online customer reviews generate real-time
feedback from customers as well as providing positive word of
mouth referral to our web visitors. We ask our new customers to
rate our product and service and these reviews are then published
on the website.

Although we are currently improving our platform and the process
of capturing customer feedback, the customer reviews published on
the Big Yellow website to date indicate we are consistently delivering
a very high standard of service:

> over 8,100 reviews have been published
> over 62% have awarded a score of 5 out of 5
> our average overall rating is 4.7 out of 5
> our average customer service score is 4.8 out of 5

In our view, real time customer reviews which have been
independently and externally obtained are much more persuasive to
prospects than scripted testimonials. In addition, we also gain real
time insight from customers who feedback by publishing Google
reviews and from monitoring mentions of Big Yellow within the social
mediums of Twitter, online forums and blogs. We use this feedback to
continually improve our service offering, for example longer opening
hours on Sundays. In addition, this programme reinforces best practice
in customer service at our stores where customer reviews and
mystery shop results are transparently accessible at all levels.

Business Review (continued)

Driving online traffic
Search engines are the most important acquisition tool for us,
accounting for 73% of all traffic to the website. We continue to invest
in search engine optimisation (“SEO”) techniques both on and off the
site. This helps us to maintain our number one positions for the most
popular and most searched for terms such as “storage” and “self
storage” in the organic listings on Google.

The sponsored search listings remain the largest source of paid for
traffic and we ensure our prominence in these listings is balanced
with effective landing pages to maximise site conversion.

This year, we have also continued with online display advertising on
websites which are contextually and geographically targeted to our
core audience groups. This activity performs both a direct response
and branding role.

Efficiencies in online spend are continuing into the year ending
31 March 2014, ensuring the return on investment is maximised
from all of our different online traffic sources. Online marketing
budgets will continue to remain fluid and be directed towards the
media with the best return on investment.

Social media
Social media continues to be complementary to our existing
marketing channels. With over 23,000 ‘likes’, our Facebook channel
allows us to keep engaged with our target audiences, keeping the
brand front of mind and allowing a forum for their feedback and
dialogue. Twitter is used to get our marketing messages talked about
by different audiences and also allows us a further avenue for our
customers or prospects to get in contact with us. The Big Yellow You
Tube channel is being used to showcase our stores to web prospects
through a video store tour. We use both domestic and business
versions to help prospects experience the quality of the product
without the need for them to visit the store in person.

PR
We have also used PR stories in the year to help raise the awareness
of Big Yellow and the benefits of self storage generally. PR surveys
and stories based around renting your spare room out during the
Olympics, storing fashion collectibles and dealing with house guests
at Christmas have allowed us to communicate the virtues of using
self storage in an interesting way within press, online media and
through radio interviews nationwide.

Sales promotion
We have continued our sales promotion offer throughout the year of
“50% off for up to your first 8 weeks storage”. Our Price Promise is
also used to match competitor’s prices if the product is comparable.
Pricing is dynamically generated and takes into account customer
demand and local competition.

Budget
During the year the Group spent approximately £2.8 million on
marketing (4.0% of revenue), the same amount as the previous year.
We have increased the budget for the year ahead to £3.0 million with
a focus on driving our revenue through delivering more prospects to
the website.

People
At Big Yellow we aim to provide a lively, fun and enjoyable working
environment, without losing our commitment to delivering the very best
standards of customer service.

We encourage a culture of partnership within the business and believe
in staff participating in corporate performance through bonus schemes
and share incentives. Many employees benefit from an HMRC approved
Sharesave Scheme, which provides an opportunity to invest in the
future success of Big Yellow at a discount to the prevailing share price
at the date of each invitation. Our stakeholder pension scheme has been
taken up by over two thirds of employees eligible to join and a voucher
awards scheme is used extensively across the business to recognise
and reward our staff’s efforts and achievements.

We aim to promote employee wellbeing through a range of flexible
working options which include flexitime, staggered hours, home
working and sabbaticals. We provide a comprehensive range of medical
support and advice though our occupational health providers and have
arranged corporate gym membership on a national basis, as well as a
Cycle to Work Scheme.

We continue to recognise the importance of communication and
consultation with an annual spring conference, regular formal and
informal meetings, quarterly newsletters and weekly operational
updates. In addition, the Directors and senior management spend a
significant amount of time in the stores and are accessible to
employees at all levels. A bi-annual Employee Attitude Survey provides
management with key feedback and guidance as to where to focus their
attention to improve further the working environment.

In March 2012 we were delighted to have been recognised as one of
The Sunday Times 100 Best Companies to Work For and also to have
achieved “Two Star Status” for the Best Companies Accreditation.

We had 319 full-time, part-time and casual employees in the
business at the year end (2012: 310 employees) and recruiting and
retaining the right calibre people remains critical to the continued
success of the Company.

We promote the individual development of staff through training and
regular performance appraisals and delivered just over 920 days of
training to employees in the last year, equating to an average of just
under 3.0 days of training per employee. In the stores, over half of the
managerial posts have been filled by internal promotions.

Property and development
We believe the continuing difficulties in the banking and capital
markets make access to capital required to fund growth more
difficult and will slow down the growth in self storage store openings
in the market generally. We believe that we are in a relatively strong
position with our freehold property assets and with the proven ability
to access funding when the opportunity presents itself.

We now have a portfolio of 70 stores and sites of which 66 are
currently open, one under construction and a further two have
planning consents, with planning negotiations ongoing at our site in
central Manchester.

Big Yellow’s demand profile of Move-ins
– April to March 2013

Proportion of current customers in the established
stores by length of stay

Other 8%

Student Storage
8%

Travelling 4%

3 years
or more

Rental Sector
11%

Moving – Owned Sector
39%

Business Storage
13%

1-3 years

15.0%

16.0%

15.0%

Decluttering
12%

Home Improvements
5%

Less
than 1
year

35.7%
36.7%

38.4%

49.3%

47.3%
46.6%

10%

20%

30%

40%

50%

March 2013

March 2012

March 2011

Development pipeline
There are three freehold sites with planning consent for Big Yellow stores to be developed. We also own a 4.5 acre development site in central
Manchester where we are in planning discussions for a mixed use scheme incorporating a new Big Yellow store. The status of the development
pipeline is summarised in the table below:

Site

Location

Status

Gypsy Corner,
West London

Enfield, North London

Guildford Central

Manchester Central

Anticipated capacity

70,000 sq ft

Highly visible site on A40 in Acton,
West London

Under construction, planned
opening April 2014

Prominent site on the A10
Great Cambridge Road, London

Prime location in centre of Guildford
on Woodbridge Meadows

Prime location on Water Street in
central Manchester

Consent granted

60,000 sq ft

Consent granted

56,000 sq ft

Planning under negotiation

50,000 sq ft to
70,000 sq ft

Our landmark wholly owned store at Chiswick, with strong visibility from the M4 flyover, opened in April 2012. We have commenced the
construction of our Gypsy Corner store, which we anticipate will open in April 2014.

The Group manages the construction and fit-out of its stores in-house, as we believe it provides both better control and quality, and we have
an excellent record of building stores on time and within budget.

Corporate Social Responsibility
The Company has now employed a Corporate Social Responsibility
(“CSR”) Manager for over 5 years. The CSR Manager reports to the
Board through the Operations Director.

Our key CSR achievements in the year were:

> Our continued reduction in Scope 2 electricity use and carbon
emissions for a “same store” portfolio. Scope 2 emissions are
from National Grid electricity use and constitute some 94% of
our annual energy consumption. These reductions have been
achieved by the continued investment in our energy efficiency
programmes such as motion sensor lighting, energy efficient
lamps, power-saver adaptors and zoned motion sensor lighting
in both new and existing stores.

> The income generated from our solar PV installations has

increased by 126% in 2013 from the average achieved in 2011
and 2012, mainly due to the contribution from our three new
larger capacity installations at New Cross, Chiswick and Barking.
These PV installations contribute about 20% of each store’s
annual electricity needs.

> Measurement of our Scope 1 and Scope 3 emissions. Scope 1

emissions are our ‘Direct’ or ‘On Site’ emissions and make up just
5% of our total carbon footprint. They are mainly from the natural
gas heating in eight of our twelve flexi-office stores and also from
coolant replacement in air conditioned areas. Our Scope 3
emissions are emissions from our waste and water supply chains.
> The Queen’s Award for “Innovation and Sustainable Development”
was presented to Big Yellow in April 2012. The Award is only
presented to a limited number of the companies who apply each
year. We were very proud to have our CSR initiatives recognised
by The Queen’s Award in 2012.

> Achieving a “Green Star” rating by the Global Real Estate

Sustainability Benchmark (“GRESB”) report. We were recognised
as a pan European “sector leader in sustainable development”
by GRESB, with a global ranking of 9 out of 455 participating
companies.

Our detailed CSR Report is included on pages 46 to 54 and many of
our CSR initiatives are set out in our new ECO page on our website at
bigyellow.co.uk/green.

Delivering

Results

Revenue for the year was £69.7 million, an increase of
£4.0 million (6%) from £65.7 million in the prior year.

Financial Review

Financial results
Revenue for the year was £69.7 million, an increase of £4.0 million
(6%) from £65.7 million in the prior year. Store revenue increased
by 6% in the year to £68.3 million (2012: £64.3 million). The other
revenue earned is from fee income earned from Big Yellow Limited
Partnership and Armadillo and tenant income on sites where we
have not started development. Other sales (included within the
above), comprising the selling of packing materials, insurance and
storage related charges, represented 17.2% of storage income for the
year (2012: 17.1%) and generated revenue of £10.0 million for the
year, up 7% from £9.4 million in 2012.

Store revenue for the fourth quarter decreased by 1% to £15.9 million
from £16.1 million for the same quarter last year. Store revenue in
the seasonally weaker second half of the year was £32.7 million,
up 1% from £32.4 million for the second half of the year ended
31 March 2012.

There was an increase in revenue of 1% for the 32 established
stores and 18% for the 22 lease-up stores. The EBITDA margin for
the 32 established stores was 67% (2012: 65%), the EBITDA margin
for the 22 lease-up remained at 60%. The table below shows the
performance of the 32 established stores and the 22 lease-up
stores during the year.

32 established stores
22 lease-up stores

Total

Capacity

Occupancy

Revenue

EBITDA

000 sq ft

31 March 2013
000 sq ft

31 March 2012
000 sq ft

31 March 2013
£000

31 March 2012
£000

31 March 2013
£000

31 March 2012
£000

1,941
1,491

3,432

1,413
810

2,223

1,442
691

2,133

44,135
24,199

43,793
20,480

29,497
14,635

28,388
12,371

68,334

64,273

44,132

40,759

The Group made a profit before tax in the year of £31.9 million,
compared to a loss of £35.6 million in the prior year. The prior year
loss reflected the decrease in the valuation of the Group’s open
stores following the valuer’s assessment of the impact of VAT. The
valuation of the stores in the current year is broadly in line with the
prior year.

After adjusting for the gain on the revaluation of investment
properties and other matters shown in the table below the Group
made an adjusted profit before tax in the year of £25.5 million, up 8%
from £23.6 million in 2012.

Profit/(loss) before tax
(Gain)/loss on revaluation of

investment properties
Movement in fair value on interest

rate derivatives
Gains on surplus land
Refinancing costs
VAT implementation costs
Share of non-recurring (gains)/losses
in associate

Adjusted profit before tax

2013
£m

31.9

(9.5)

0.2
(1.0)
4.3
0.2

(0.6)

25.5

2012
£m

(35.6)

51.4

8.0
(0.5)
–
–

0.3

23.6

The movement in the adjusted profit before tax from the prior year is
illustrated in the table below:

Adjusted profit before tax – year ended 31 March 2012
Increase in gross profit
Increase in net interest payable
Increase in administrative expenses
Increase in share of recurring profit of associate
Decrease in capitalised interest

Adjusted profit before tax – year ended 31 March 2013

£m

23.6
3.0
(0.3)
(0.4)
0.4
(0.8)

25.5

Diluted EPRA earnings per share based on adjusted profit after tax
was up 6% to 19.3p (2012: 18.2p) (see note 12). Basic earnings per
share for the year was 24.4p (2012: loss per share of 27.7p) and fully
diluted earnings per share was 24.1p (2012: loss per share of 27.4p).

Operating costs
We have continued with our programme of cost control in the Group.

Cost of sales comprise principally of the direct store operating
costs, including store staff salaries, utilities, business rates,
insurance, a full allocation of the central marketing budget, and
repairs and maintenance.

Direct store operating costs for the established portfolio have fallen
by 4% reflecting the increased recoverability of VAT on our operating
costs in the second half of the year. The operating costs in the lease-
up stores have increased due to the additional operating costs of
New Cross and Chiswick, additionally by general inflationary
pressures, notably from business rates, offset by the improved VAT
recovery. Additionally, the prior year costs included a rates rebate
on two stores.

Administrative expenses in the income statement have increased
by £0.6 million compared to the prior year. £1.4 million of the
£7.7 million administrative expense is non-cash IFRS 2 share based
payment charges. The increase in administrative expenses was
largely due to an expense of £0.6 million in respect of Employers’
National Insurance on the vesting of the Company’s long term bonus
plan for the period 2009 to 2012. This has been offset by a reduction
in irrecoverable VAT in the second half of the year. There was also a
cost of £0.2 million in respect of costs incurred challenging and
implementing the imposition of VAT on self storage, which has been
added back in calculating the Group’s adjusted profit for the year.

Interest expense on bank borrowings
The gross bank interest expense for the year was £11.5 million, an
increase of £0.4 million from the prior year. This reflects a higher
average cost of debt in the year following the Aviva refinancing in April
and the bank refinancing in October, offset in part by the reduction in
debt in February following the placing. The average cost of borrowing
during the year was 4.0%, compared to 3.7% in the prior year.

Total interest payable has increased in the statement of
comprehensive income from £11.2 million to £12.3 million in part
due to the increase in the gross bank interest expense. Additionally,
capitalised interest decreased by £0.8 million from the prior year,
with limited construction activity taking place during the year,
compared to construction on three sites in the prior year.

The refinancing costs of £4.3 million relate to the unamortised loan
arrangement costs of the previous facility, and the write-off of the
costs of the new bank facility in accordance with IAS 39. This has
been adjusted from the Group’s recurring profit for the year.

REIT status
The Group converted to a Real Estate Investment Trust (“REIT”) in
January 2007. Since then the Group has benefited from a zero tax
rate on the Group’s qualifying self storage earnings. The Group only
pays tax on the profits attributable to our residual business,
comprising primarily of the sale of packing materials and insurance,
and fees earned from Big Yellow Limited Partnership and from the
management of the Armadillo portfolio.

REIT status gives the Group exemption from UK corporation tax on
profits and gains from its qualifying portfolio of UK stores. Future
revaluation gains on these developments and our existing open
stores will be exempt from corporation tax on capital gains, provided
certain criteria are met.

The Group has a rigorous internal system in place for monitoring
compliance with criteria set out in the REIT regulations. On a monthly
basis, a report to the Executive on compliance with these criteria is
carried out. To date, the Group has complied with all REIT regulations,
including forward looking tests.

VAT
VAT was introduced on self storage rents with effect from 1 October
2012, following the announcement in the March 2012 budget. During
the consultation period we worked with other members of the
industry to lobby against this change. We took legal advice over the
summer and, based on that advice, decided not to proceed with a
legal challenge.

Our existing customers were notified of the introduction of VAT on
self storage rents in August, and the impact this would have on the
cost of their storage. VAT has been passed on in full to our business
customers, and in part to our existing domestic customers, with most
receiving increases in their four-weekly invoices of 10% to 12.5%.
Whilst the change to VAT will have had some impact on our existing
domestic customer base, we believe this has not been material.

We are now able to recover the majority of VAT on our ongoing
operating expenses, and are also entitled to a refund of previously
irrecoverable VAT on capital expenditure under the Capital Goods
Scheme, amounting to a gross amount of £11.8 million in the Group
and £4.9 million in the Partnership (of which the Group’s share is
£1.6 million).

Taxation
There is no cash tax payable for the year, due to tax relief arising from
the restructuring of interest rate derivatives in 2009 and in the year.
There is no tax charge for the year ended 31 March 2013 (2012: £nil).

Dividends
REIT regulatory requirements determine the level of Property Income
Dividend (“PID”) payable by the Group. On the basis of the full year
distributable reserves for PID purposes, a PID of 8 pence per share is
payable (31 March 2012: 9 pence per share PID).

Financial Review (continued)

The Board is recommending the payment of a final dividend of
6 pence per share. The table below summarises the declared
dividend for the year:

Dividend (pence per share)

Interim dividend – PID

Final dividend

Total dividend

– discretionary
– total

– PID
– discretionary
– total

31 March
2013

31 March
2012

5p
nil p
5p

3p
3p
6p

8p
3p
11p

4.5p
nil p
4.5p

4.5p
1p
5.5p

9p
1p
10p

Subject to approval by shareholders at the Annual General Meeting to
be held on 19 July 2013, the final dividend will be paid on 24 July 2013.
The ex-div date is 12 June 2013 and the record date is 14 June 2013.

Cash flow growth
The Group is strongly cash generative and draws down from its
longer term committed facilities as required to meet obligations.

A summary of the cash flow for the year is set out in the table below:

Year ended
31 March
2013
£000

Year ended
31 March
2012
£000

Cash generated from operations
Finance costs (net)

Free cash flow
Capital expenditure
Asset sales
Investment in associate

Cash flow after investing activities
Ordinary dividends
Share buy back
Issue of share capital
Non-recurring finance costs
(Decrease)/increase in borrowings

Net cash (outflow)/inflow
Opening cash and cash equivalents

42,025
(11,839)

30,186
(8,647)
15,864
(1,567)

35,836
(13,543)
–
36,764
(15,573)
(45,694)

(2,210)
10,060

38,877
(11,489)

27,388
(23,630)
5,404
(1,167)

7,995
(12,223)
(3,727)
61
–
9,000

1,106
8,954

Closing cash and cash equivalents
Debt

7,850
(238,306)

10,060
(284,000)

Net debt

(230,456)

(273,940)

Free cash flow pre-capital expenditure increased by 10% to
£30.2 million for the year (2012: £27.4 million). In the year capital
expenditure outflows were £8.6 million, down from £23.6 million in
the prior year, with construction activity largely limited to completing
the store at Chiswick and the hotel development at Richmond. The
cash flow after investing activities was a net inflow of £35.8 million
in the year, compared to an inflow of £8.0 million in 2012. The non-
recurring finance costs relate to £10.5 million of payments made
to cancel interest rate derivatives and £5.1 million relating to
arrangement fees paid for the Aviva and senior debt loans. The
placing proceeds and surplus land sales enabled us to reduce debt
by £45.7 million in the year.

Balance sheet

Property
The Group’s 54 wholly owned stores and four stores under
development at 31 March 2013, which are classified as investment
properties, have been revalued by Cushman & Wakefield (“C&W”)
and this has resulted in an investment property asset value of
£762.9 million, comprising £700.5 million (92%) for the 47 freehold
(including one long leasehold) open stores, £45.1 million (6%) for the
seven short leasehold open stores and £17.3 million (2%) for the four
investment properties under construction.

Analysis of property portfolio

Investment property
Investment property under
construction

Investment property total
Surplus land

Total

No of
locations

58
2

Value at
31 March
2013
£m

Revaluation
movement
in year
£m

745.6

10.2

17.3

762.9
4.6

767.5

(0.7)

9.5
–

9.5

We have recognised a receivable of £10.3 million in the year in
respect of payments due back to the Group under the Capital Goods
Scheme as a consequence of the introduction of VAT on self storage
from 1 October. The final amount is subject to agreement with HMRC.
The Group had an historic creditor in respect of Capital Goods Scheme
payments due to HMRC; this has been reduced by £0.3 million in the
year, representing amounts that we are no longer required to pay.
The recognition of the receivable and the write back of the creditor
reduces the book cost of the investment properties, and has
produced a revaluation surplus in the year. The debtor has been
discounted in accordance with International Accounting Standards to
the net present value using the Group’s average cost of debt. The
gross value of the debtor before discounting is £11.8 million.

Investment property
Each store is reviewed and valued individually by Cushman &
Wakefield LLP, who are the valuers to a significant proportion of the
UK and European self storage market.

In the prior year the valuer took into account its estimate of the
proposed introduction of VAT from 1 October 2012 on the asset
valuation. This led to a revaluation fall of the investment property
portfolio in the prior year of £51.4 million.

The valuations in the current year are broadly in line with the prior
year, with a revaluation deficit of £0.4 million on the open stores,
before adjusting for the Capital Goods Scheme.

The valuation is based on an average occupancy over the 10 year
cash flow period of 78.4% across the whole portfolio. Between April
2004 and March 2008, the 32 established stores had an average
occupancy of 83%.

Established
store
portfolio

Lease-up
store
portfolio

All wholly
owned
stores

Valuation at
31 March 2013
Occupancy at

31 March 2013
Stabilised occupancy

assumed in valuations
Net initial yield pre-admin
expenses
Stabilised yield assuming
no rental growth

£406.3m

£339.3m

£745.6m

72.8%

54.3%

64.8%

82.0%

80.9%

81.5%

6.8%

4.9%

5.9%

8.1%

8.4%

8.2%

The initial yield pre-administration expenses assuming no rental
growth is 5.9% (2012: 5.7%) rising to a stabilised yield of 8.2%
(2012: 8.3%). The 32 established stores that were mature in 2007 are
assumed to return to stabilised occupancy in 35 months on average.
The 22 lease-up stores are assumed to reach stabilised occupancy in
44 months on average from 1 April 2013. Note 14 contains more detail
on the assumptions underpinning the valuations.

Investment property under construction
Chiswick was transferred to investment property in the year. The
remaining four wholly owned development sites have reduced in
value by £0.4 million, £0.3 million relating to capital expenditure
incurred, with the balance of £0.7 million a revaluation deficit.
C&W’s forecast valuations for when the assets have reached
stabilised occupancy, including assumptions in relation to revenue
and operating cost growth, are currently pointing to a revaluation
surplus on total development cost of £28 million on the three wholly
owned development sites with planning consent.

In their report to us, our valuers, Cushman and Wakefield have
drawn attention to valuation uncertainty resulting from a lack of
transactions in the self storage investment market. Please see note
14 for further details.

Purchaser’s cost adjustment
As in prior years, we have instructed an alternative valuation on our
assets using a purchaser’s cost assumption of 2.75% (see note 14 for
further details) to be used in the calculation of our adjusted diluted
net asset value. This Red Book valuation on the basis of 2.75%
purchaser’s costs, results in a higher property valuation at 31 March
2013 of £796.9 million (£34.0 million higher than the value recorded
in the financial statements). The valuations in Big Yellow Limited
Partnership are £4.8 million higher than the value recorded in the
financial statements, of which the Group’s share is £1.6 million. The
sum of these is £35.6 million and translates to 25.1 pence per share.

The revised valuation translates into an adjusted net asset value per
share of 419.2 pence (2012: 422.7 pence, restated – see note 12)
after the dilutive effect of outstanding share options.

Surplus land
These are sites which the Group does not intend to develop into
self storage centres. The sites are held at the lower of cost and net
realisable value and have not been externally valued. The Directors
have assessed the carrying value of these sites. The Group received
£15.8 million gross sales proceeds during the year from the disposal
of surplus land; £4.8 million from the disposal of our surplus site in
Chiswick; £7.4 million from the disposal of the hotel in Richmond and
£3.6 million from the disposal of our site in South Bow.

Movement in adjusted NAV
The year on year movement is illustrated in the table below:

1 April 2012
Equity raising

1 April 2012 (proforma)
Adjusted profit
Equity dividends paid
Revaluation movements
(including share of BYLP)
Refinancing costs
(including swap cancellations)

Movement in purchaser’s cost adjustment
Other movements (eg share schemes)

Equity
shareholders’
funds
£m

559.0
35.8

594.8
25.5
(13.5)

EPRA
adjusted
NAV per
share

427.7
(5.0)

422.7
18.0
(9.5)

(1.7)

(1.2)

(14.8)
0.1
4.1

(10.4)
0.1
(0.5)

31 March 2013

594.5

419.2

Financial Review (continued)

Borrowings
We focus on improving our cash flows and we currently have healthy
Group interest cover of 3.3 times (2012: 3.1 times) based on
adjusted Group EBITDA against existing interest costs, allied to a
relatively conservative debt structure secured principally against
the freehold estate.

In April 2012, we completed a £100 million 15 year fixed rate loan
with Aviva Commercial Finance Limited. The loan is secured over a
portfolio of 15 freehold self storage centres, which were valued at
£242.1 million at 29 February 2012 for the purposes of the
drawdown. The annual fixed interest rate on the loan is 4.90%.

The loan amortises to £60 million over the course of the 15 years,
consistent with the Group's medium term debt reduction strategy.
The debt service is payable monthly based on fixed annual amounts.
The loan outstanding on the fifth anniversary will be £89.8 million;
£76.7 million outstanding on the tenth anniversary, with £60 million
remaining at expiry in April 2027.

The new 15 year term loan was deployed to repay and cancel
£100 million of the Group's core bank debt facility. At the same time
as repaying the bank debt, we cancelled £100 million of interest rate
derivatives at a cost of £9.2 million.

On 5 October 2012 the Group entered into a new £190 million 4 year
bank facility with Lloyds TSB, HSBC and Santander, expiring in
September 2016. £140 million of the facility is term loan with the
balance of £50 million revolving. In February 2013, the Group
repaid and cancelled £35 million of the bank facility following the
placing carried out in January 2013, providing a facility amount
of £155 million. £120 million of this facility is term loan with the
balance of £35 million revolving.

This facility replaced the Group's existing £225 million facility,
expiring in September 2013, which was provided by the same three
banks and HSH Nordbank, who were fully repaid following completion
of this refinancing.

The Group had an historic interest rate derivative of £90 million fixed
at 2.99% plus margin until September 2015. As part of the bank
refinancing in October 2012, we cancelled £20 million of this interest
rate derivative at a cost of £1.3 million. The remaining £70 million
interest rate derivative was extended to September 2016 at a fixed
rate of 2.8% plus margin. The balance of the bank debt drawn accrues
interest at variable rates based on one month LIBOR plus margin.

The Group's average cost of debt at 31 March 2013 is shown in the
table below.

Aviva loan
Fixed bank debt
Variable bank debt

Total

Amount
of debt
£m

98.3
70.0
70.0

238.3

Weighted
average
interest
cost

4.9%
5.3%
2.8%

4.4%

The Group was in compliance with its banking covenants at 31 March
2013; see note 19 for details.

The Group has £22.9 million of cash and undrawn bank facilities and
relatively conservative levels of gearing. The Group currently has a
net debt to gross property assets ratio of 30%, and a net debt to
adjusted net assets ratio of 39%.

At 31 March 2013, the fair value on the Group’s interest rate
derivatives was a liability of £5.5 million. There is no charge in
respect of the cost of cancelling the derivatives in the current year
income statement, as it had been recognised in prior years through
the fair value movement on derivatives. The Group does not hedge
account its interest rate derivatives. As recommended by EPRA
(European Public Real Estate Association), the fair value movements
are eliminated from adjusted profit before tax, diluted EPRA earnings
per share, and adjusted net assets per share.

The facilities attract a ratcheted margin over LIBOR based on interest
cover. The Group is currently paying a blended 2.4% margin, the
lowest margin on the ratchet, which is effective for asset income
cover of greater than 3 times.

Treasury continues to be closely monitored and its policy approved
by the Board. We maintain a keen watch on medium and long term
rates and the Group’s policy in respect of interest rates is to maintain
a balance between flexibility and hedging of interest rate risk.

Cash deposits are only placed with approved financial institutions in
accordance with the Group’s Treasury policy.

Share capital
The share capital of the Company totalled £14.3 million at 31 March
2013 (2012: £13.1 million), consisting of 142,639,647 ordinary
shares of 10p each (2012: 131,393,041 shares).

Shares issued for the exercise of options during the year amounted
to 0.4 million at an average exercise price of 319p.

The Group holds 1.4 million shares in treasury and 1.5 million shares
within an Employee Benefit Trust (“EBT”). These shares are shown as
a debit in reserves and are not included in calculating net asset
value per share.

Opening shares
Shares issued for the placing
Shares issued to EBT
Shares issued for the
exercise of options

Closing shares in issue
Shares held in EBT
Shares held in treasury

2013
No.

2012
No.

131,393,041 131,060,522
–
–

10,000,000
876,671

369,935

332,519

142,639,647 131,393,041
(1,885,117)
(1,418,750)

(1,500,000)
(1,418,750)

Closing shares for NAV purposes

139,720,897 128,089,174

45,430,167 shares were traded in the market during the year ended
31 March 2013 (2012: 63,054,535). The average mid-market price of
shares traded during the year was 326.1p with a high of 387.5p and a
low of 274.5p.

Big Yellow Limited Partnership
Big Yellow Limited Partnership, a joint venture with Pramerica Real
Estate Investors Limited, owns self storage centres and development
sites in the Midlands, the North, Scotland and four locations in the
South. In the consolidated accounts of Big Yellow Group PLC, the
Partnership is treated as an associate. We have adopted equity
accounting for the Partnership, so that our share of the Partnership’s
results are disclosed in operating profit and our net investment is
shown in the balance sheet within “Investment in Associate”. We
have provided in note 13d the balance sheet and income statement
of the Partnership, along with the Group’s share of the income
statement captions.

Structure
The Group and Pramerica have committed equity in a one third, two
thirds split respectively. The Board of the Partnership comprises
two representatives of both Pramerica and Big Yellow. Pramerica have
the casting vote over the approval of the Partnership’s annual
business plan.

The Partners have resolved not to develop any further stores.
No further equity contributions are forecast.

The Group earns certain property acquisition, planning, construction
and operational fees from the Partnership. For the year to 31 March
2013, these fees amounted to £0.6 million (2012: £0.7 million).

Funding
In October 2012, the £60 million Partnership bank facility with RBS
and HSBC was extended to September 2016 from its previous expiry
date of September 2013. The new facility has an initial higher average
cost of debt of approximately 6.4%. We expect this to reduce to 4.8%
from July 2013, when existing hedging arrangements expire, with
forward start swaps covering 50% of the drawn debt at a pre-margin
cost of 1.05% starting from that date. There is a margin ratchet based
on the Partnership’s income cover which ranges between 250 bps
and 400 bps.

Results
For the year ended 31 March 2013, the operating profit of the
Partnership was £3.4 million (2012: £1.8 million), with all 12 stores
being profitable at the operating level.

The Partnership made a profit before tax of £1.9 million (2012: loss
of £1.8 million). Big Yellow’s share of this profit was £0.6 million
(2012: share of loss of £0.6 million).

After adjusting for non-recurring items (revaluation gains of
£2.5 million, non-recurring refinancing costs of £1.5 million, and fair
value gain on interest rate derivatives of £0.6 million), the
Partnership made an adjusted profit of £0.3 million (2012: adjusted
loss of £0.8 million), of which the Group’s share is £0.1 million
(2012: share of loss of £0.3 million). The Partnership is tax
transparent, so the limited partners are taxed on any profits.

We have recognised a receivable of £4.3 million in the year in respect
of payments due back to the Partnership under the Capital Goods
Scheme. These amounts are subject to agreement with HMRC. The
receivable has been discounted; the gross value of the receivable
before discounting is £4.9 million.

Big Yellow has an option to purchase the assets contained within the
Partnership or the interest in the Partnership which it does not own
exercisable from 31 March 2013. The option has been deferred this
year, and is next exercisable in March 2014 and again in March 2015.
On exit, whether by way of exercise of the option or a sale to a third
party, Big Yellow is entitled to certain promotes, which could result in
Big Yellow sharing in the surplus created in the Partnership ahead of
its equity participation.

Portfolio Summary – Wholly Owned Stores

Wholly owned stores

Number of stores

At 31 March
Total capacity (sq ft)
Occupied space (sq ft)
Percentage occupied
Net rent per sq ft
For the year
REVPAF(2)
Average occupancy
Average annual rent psf

2013

Established(1)

Lease-up

Total

Established

2012

Lease-up

Total

1,941,000
1,413,000
72.8%
£24.72

1,491,000
810,000
54.3%
£24.51

3,432,000
2,223,000
64.8%
£24.65

1,941,000
1,442,000
74.3%
£26.44

1,417,000
691,000
48.8%
£26.78

3,358,000
2,133,000
63.5%
£26.49

£22.74
74.9%
£26.10

£16.29
51.8%
£26.16

£19.94
64.8%
£26.12

£22.56
73.3%
£26.52

£14.99
43.7%
£27.49

£19.43
60.8%
£26.81

£000

Self storage income
Other storage related income(3)
Ancillary store rental income

Total store revenue
Direct store operating costs (excluding depreciation)
Short and long leasehold rent(4)
Store EBITDA(5)
Store EBITDA margin(6)

Deemed cost

To 31 March 2013
Capex to complete

Total

37,926
6,123
86

44,135
(12,835)
(1,803)
29,497
66.8%

£m

163.1

20,186
3,873
140

24,199
(9,520)
(44)
14,635
60.5%

£m

232.0
3.0

235.0

58,112
9,996
226

68,334
(22,355)
(1,847)
44,132
64.6%

£m

395.1
3.0

398.1

37,729
5,995
69

43,793
(13,366)
(2,039)
28,388
64.8%

17,005
3,368
107

20,480
(8,064)
(45)
12,371
60.4%

54,734
9,363
176

64,273
(21,430)
(2,084)
40,759
63.4%

(1) The 32 established stores are those that had reached stabilisation as a portfolio in 2007 prior to the economic downturn. The lease-up stores have yet to trade at their stabilised

occupancy levels. Of the 22 lease-up stores, three stores opened before 31 March 2006, six stores opened in the year ended 31 March 2007, six stores opened in the year ended
31 March 2008 and seven have opened since 1 April 2008.

(2) Total store revenue divided by the average maximum lettable area in the year.
(3) Packing materials, insurance and other storage related fees.
(4) Rent for seven established short leasehold properties accounted for as investment properties and finance leases under IFRS with total self storage capacity of 431,000 sq ft, and a

long leasehold lease-up store with a capacity of 64,000 sq ft.

(5) Earnings before interest, tax, depreciation and amortisation.
(6) Of the established stores, the seven leasehold stores achieved a store EBITDA of £5.3 million and EBITDA margin of 51%. The 25 freehold stores achieved a store EBITDA of

£24.2 million and EBITDA margin of 72%.

Our

Unrivalled Portfolio

Chiswick, April 2012
MLA – 75,000 sq ft

New Cross, February 2012
MLA – 60,000 sq ft

Stockport, September 2011
MLA – 60,000 sq ft

Eltham, April 2011
MLA – 70,000 sq ft

Camberley, January 2011
MLA – 68,000 sq ft

High Wycombe, June 2010
MLA – 60,000 sq ft

Our Unrivalled Portfolio (continued)

Reading, December 2009
MLA – 62,000 sq ft

Sheffield Bramall Lane,
September 2009 MLA – 60,000 sq ft

Poole, August 2009
MLA – 55,000 sq ft

Nottingham, August 2009
MLA – 65,000 sq ft

Edinburgh, July 2009
MLA – 63,000 sq ft

Twickenham, May 2009
MLA – 76,000 sq ft

Liverpool, March 2009
MLA – 60,000 sq ft

Bromley, March 2009
MLA – 71,000 sq ft

Birmingham, February 2009
MLA – 60,000 sq ft

Sheen, December 2008
MLA – 64,000 sq ft

Sheffield Hillsborough,
October 2008 MLA – 60,000 sq ft

Kennington, May 2008
MLA – 66,000 sq ft

Merton, March 2008
MLA – 70,000 sq ft

Fulham, March 2008
MLA – 139,000 sq ft

Balham, March 2008
MLA – 61,000 sq ft

Barking, November 2007
MLA – 64,000 sq ft

Ealing Southall, November 2007
MLA – 57,000 sq ft

Sutton, July 2007
MLA – 70,000 sq ft

Gloucester, December 2006
MLA – 50,000 sq ft

Edmonton, October 2006
MLA – 75,000 sq ft

Kingston, August 2006
MLA – 62,000 sq ft

Bristol Ashton Gate, July 2006
MLA – 61,000 sq ft

Finchley East, May 2006
MLA – 54,000 sq ft

Tunbridge Wells, April 2006
MLA – 57,000 sq ft

Bristol Central, March 2006
MLA – 64,000 sq ft

North Kensington,
December 2005 MLA – 51,000 sq ft

Leeds, July 2005
MLA – 76,000 sq ft

Beckenham, May 2005
MLA – 71,000 sq ft

Tolworth, November 2004
MLA – 56,000 sq ft

Watford, August 2004
MLA – 64,000 sq ft

Swindon, April 2004
MLA – 53,000 sq ft

Orpington, December 2003
MLA – 64,000 sq ft

Byfleet, November 2003
MLA – 48,000 sq ft

Chelmsford, April 2003
MLA – 54 ,000 sq ft

Finchley North, March 2003
MLA – 62,000 sq ft

West Norwood, January 2003
MLA – 57,000 sq ft

Colchester, December 2002
MLA – 54,000 sq ft

Bow, November 2002
MLA – 129,000 sq ft

Brighton, October 2002
MLA – 59,000 sq ft

Guildford, June 2002
MLA – 55,000 sq ft

Our Unrivalled Portfolio (continued)

New Malden, May 2002
MLA – 81,000 sq ft

Hounslow, December 2001
MLA – 54,000 sq ft

Battersea, December 2001
MLA – 34,000 sq ft

Ilford, November 2001
MLA – 58,000 sq ft

Cardiff, October 2001
MLA – 74,000 sq ft

Portsmouth, October 2001
MLA – 61,000 sq ft

Norwich, September 2001
MLA – 47,000 sq ft

Dagenham, July 2001
MLA – 51,000 sq ft

Wandsworth, April 2001
MLA – 57,000 sq ft

Luton, March 2001
MLA – 41,000 sq ft

Southend, March 2001
MLA – 57,000 sq ft

Staples Corner, March 2001
MLA – 112,000 sq ft

Romford, November 2000
MLA – 70,000 sq ft

Milton Keynes, September 2000
MLA – 61,000 sq ft

Cheltenham, April 2000
MLA – 50,000 sq ft

Slough, February 2000
MLA – 67,000 sq ft

Hanger Lane, October 1999
MLA – 66,000 sq ft

Oxford, August 1999
MLA – 33,000 sq ft

Croydon, July 1999
MLA – 80,000 sq ft

Richmond, May 1999
MLA – 35,000 sq ft

Portfolio Summary – Big Yellow Limited Partnership Stores

Number of stores

At 31 March
Total capacity (sq ft)
Occupied space (sq ft)
Percentage occupied
Net rent per sq ft
For the year
REVPAF
Average occupancy
Average annual rent psf

Self storage income
Other storage related income
Ancillary store rental income

Total store revenue
Direct store operating costs (excluding depreciation)

Store EBITDA
Store EBITDA Margin

Deemed cost (1)

To 31 March 2013
Capex to complete

Total

(1) This cost includes Leeds which was acquired by the Partnership as an open store in November 2007.

March
2012

743,000
325,000
43.7%
£18.12

£9.11
38%
£18.42

£000

5,189
1,315
35

6,539
(3,937)

2,602
39.8%

March
2013

749,000
409,000
54.6%
£16.72

£11.14
49%
£18.29

£000

6,704
1,556
29

8,289
(4,023)

4,266
51.5%

£m

98.8
1.7

100.5

P
O
R
T
F
O
L
I
O
S
U
M
M
A
R
Y

Report on Corporate Governance

Introduction
The Company is committed to the principles of corporate governance contained in the UK Corporate Governance Code that was issued in 2010 by the
Financial Reporting Council (‘the Code’) for which the Board is accountable to shareholders. The Board also takes account of the corporate governance
guidelines of institutional shareholders and their representative bodies.

Statement of compliance with the Code
Throughout the year ended 31 March 2013, the Company has been in compliance with the Code provisions set out in section 1 of the 2010 UK Corporate
Governance Code.

Statement about applying the principles of the Code
The Company has applied the principles set out in the Code, including both the main principles and the supporting principles, by complying with the Code as
reported above. Further explanation of how the principles and supporting principles have been applied is set out below and in the Directors’ Remuneration
Report and Audit Committee Report.

The Board of Directors
The Directors believe it is essential for the Group to be led and controlled by an effective Board that provides entrepreneurial leadership within a framework
of sound controls which enables risk to be assessed and managed. The Board is responsible for setting the Group’s strategic aims, its values and standards
and ensuring the necessary financial and human resources are in place to achieve its goals. The Board ensures that its obligations to shareholders and
other stakeholders are understood and met. The Board also regularly reviews the performance of management.

The Board currently consists of nine Directors: four Executives and five Non-Executives. The Board considers Tim Clark, Richard Cotton, Mark Richardson and
Steve Johnson to be wholly independent and free from any business or other relationship which could materially interfere with the exercise of their
judgement throughout the year.

The Board does not consider that Philip Burks is an independent Non-Executive, as he is a co-founder of the Group and was an Executive Director from
September 1998 until March 2007. Philip Burks is stepping down from the Board at the Group’s AGM on 19 July. He will be replaced by Georgina Harvey, who
is joining the Board in July 2013. The Board considers that Georgina Harvey is wholly independent and free from any business or other relationship which
could materially interfere with the exercise of her judgement.

Tim Clark is the Senior Independent Non-Executive Director.

All of the Non-Executive Directors bring considerable knowledge, judgement and experience to Board deliberations. Non-Executive Directors do not
participate in any of the Company’s share option or bonus schemes and their service is non-pensionable. Philip Burks has legacy LTIPs from his time as an
Executive Director. The Non-Executive Directors are encouraged to communicate directly with Executive Directors between formal Board meetings. The Non-
Executive Directors meet at least once a year without the Executive Directors being present.

Details of the Board and its principal committees are set out below. All of the Committees are authorised to obtain legal or other professional advice as
necessary; to secure, where appropriate, the attendance of external advisers at its meetings and to seek information required from any employee of the
Company in order to perform its duties.

Attendance at meetings of the individual Directors at the Board and for the members of the Committees that they were eligible to attend is shown in the
table below:

Director

Philip Burks
Tim Clark
Richard Cotton
James Gibson
Steve Johnson
Adrian Lee
Mark Richardson
Jonathan Short
John Trotman
Nicholas Vetch

Position

Non-Executive Director
Non-Executive Director
Non-Executive Director
Chief Executive Officer
Non-Executive Director
Operations Director
Non-Executive Director
Non-Executive Director
Chief Financial Officer
Executive Chairman

Board

Audit

Remuneration

Nominations

6/7
7/7
6/6
7/7
6/7
7/7
7/7
2/2
7/7
7/7

–
3/3
2/2
–
2/3
–
3/3
1/1
–
–

–
2/2
1/1
–
2/2
–
2/2
1/1
–
–

–
2/2
1/1
–
2/2
–
2/2
–
–
–

The Board meets approximately once every two months to discuss a whole range of significant matters including strategic decisions, major asset
acquisitions and performance. A procedure to enable Directors to take independent professional advice if required has been agreed by the Board and
formally confirmed by all Directors.

There is a formal schedule of matters reserved for the Board’s attention including the approval of Group strategy and policies; major acquisitions and
disposals, major capital projects and financing, Group budgets and material contracts entered into other than in the normal course of business. The Board
also considers matters of non-financial risk as part of its review of the Group’s risk register.

At each Board meeting the latest available financial information is produced which consists of detailed management accounts with the relevant
comparisons to budget. A current trading appraisal is given by the Executive Directors.

Re-election of Directors
In accordance with the UK Corporate Governance Code, all Directors are submitting themselves for re-election at the 2012 Annual General Meeting, with the
exception of Philip Burks who is retiring at the Annual General Meeting. The biographical details of the Directors of the Group are set out on page 70. In the
event of a proposal to appoint a new Director, this would be discussed at a full Board meeting, with each member being given the opportunity to meet the
individual concerned prior to any formal decision being taken.

Chairman and Chief Executive
The division of responsibilities between the Chairman and the Chief Executive has been agreed by the Board and encompasses the following parameters:

> the Chairman’s role is to provide continuity, experience, governance and strategic advice, while the Chief Executive provides leadership, drives the

day-to-day operations of the business, and works with the Chairman on overall strategy;

> the Chairman, working with the Senior Independent Non-Executive Director, is viewed by investors as the ultimate steward of the business and the

guardian of the interests of all the shareholders;

> the Board believes that the Chairman and the Chief Executive work together to provide effective and complementary stewardship;
> the Chairman must:

> take overall responsibility for the composition and capability of the Board; and
> consult regularly with the Chief Executive and be available on a flexible basis for providing advice, counsel and support to the Chief Executive.

> the Chief Executive must:

> manage the Executive Directors and the Group’s day-to-day activities;
> prepare and present to the Board strategic options for growth in shareholder value;
> set the operating plans and budgets required to deliver agreed strategy; and
> ensure that the Group has in place appropriate risk management and control mechanisms.

Non-Executive Directors
The Non-Executive Directors scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance.
They are required to satisfy themselves on the integrity of the financial information and that financial controls and systems of risk management are robust
and defensible. They are responsible for determining appropriate levels of remuneration for Executive Directors and have a prime role in appointing and,
where necessary, removing Executive Directors, and in succession planning.

Performance evaluation
Each year the Board undertakes an evaluation of its own performance and that of its Committee and its individual members. During the year, the Chairman
evaluated the performance of the Executive Directors, and the performance of the Chairman was evaluated by the Senior Independent Non-Executive
Director. It was considered that the individuals, the Committees and the Board as a whole were operating effectively, with appropriate procedures put in
place for minor areas identified for improvement.

The Board has noted the recommendations of the new Code, and intends to appoint a facilitator during the year ending 31 March 2014 to perform an
external evaluation of the Board’s effectiveness and procedures, and those of its Committees. Given Philip Burks is retiring from the Board in July 2013,
and will be replaced by Georgina Harvey as an independent Non-Executive Director, the Board decided to delay the external evaluation until these changes
had occurred.

With the exception of Philip Burks, all of the Non-Executive Directors are being proposed for election at the Annual General Meeting. Following the
performance evaluation above, the Committee has determined that their performance is effective, and that they demonstrated commitment to the role.

Diversity
The Company has been keen to add female representation on the Board as soon as practicable and in July 2013 Georgina Harvey will join the Board as a
Non-Executive Director. The Company believes that diversity, both at Board level and within management and staff at the Group, is an important factor for
maximising performance. Within Big Yellow there is significant diversity, including gender diversity. The male to female ratio in the Group as a whole is 55:45.

Information and professional development
All Directors are provided with detailed financial information throughout the year. On a weekly basis they receive a detailed occupancy report showing the
performance of each of the Group’s open stores. Management accounts are circulated to the Executives monthly and a detailed Board pack is distributed
bi-monthly a week prior to each Board meeting.

All Directors are kept informed of changes in relevant legislation and changing commercial risks with the assistance of the Company’s legal advisers and
auditors where appropriate. The professional development requirements of Executive Directors are identified and progressed as part of each individual’s
annual appraisal. All new Directors are provided with a full induction programme on joining the Board.

Non-Executive Directors are encouraged to attend seminars and undertake external training at the Company’s expense in areas they consider to be
appropriate for their own professional development. Each year, the programme of senior management meetings is tailored to enable meetings to be held
at the Company’s properties. During the year, the senior management team made visits to all of the Group’s open stores.

Report on Corporate Governance (continued)

Standing committees of the Board
The Board has Audit, Remuneration and Nominations Committees, each of which has written terms of reference. They deal clearly with the authorities and
duties of each Committee and are formally reviewed annually. Copies of these terms of reference are available on the Company’s website. Each of these
Committees is comprised of Independent Non-Executive Directors of the Company who are appointed by the Board on the recommendation of the
Nominations Committee.

The Chairman of each Committee reports the outcome of the meetings to the Board. The Company Secretary is secretary to each Committee.

Remuneration Committee
Tim Clark (Chairman)
Richard Cotton
Steve Johnson
Mark Richardson

Richard Cotton was appointed to the Committee in the year upon his appointment to the Board. Georgina Harvey will join the Committee upon her
appointment to the Board.

The Committee is responsible for determining broad policy for the remuneration of the Executive Directors and the Company Secretary. Within the terms of
the agreed policy the Committee will determine the total individual remuneration package of each Executive Director, including, where appropriate, bonuses,
incentive payments, pension arrangements and share options. The Committee will select, appoint and set the terms of reference for any remuneration
consultants who advise the Committee. The Committee will ensure that the contractual terms on termination, and any payments made, are fair to the
individual and the Company, that failure is not rewarded and that the duty to mitigate loss is, where appropriate, fully recognised.

The fees of the Non-Executive Directors are reviewed by the Board at regular intervals. The statement of remuneration policy and details of each Director’s
remuneration is set out in the Directors’ Remuneration Report.

Nominations Committee
Tim Clark (Chairman)
Richard Cotton
Steve Johnson
Mark Richardson

Richard Cotton was appointed to the Committee in the year upon his appointment to the Board. Georgina Harvey will join the Committee upon her
appointment to the Board.

The Nominations Committee is responsible for regularly reviewing the structure, size and composition required of the Board and giving consideration to
succession planning for Directors and other senior Executives. Where changes are required, it is also responsible for the identification, selection and
proposal to the Board for approval of persons suitable for appointment or reappointment to the Board, whether as Executive or Non-Executive Directors and
to seek approval from the Remuneration Committee to the remuneration and terms and conditions of service of any proposed Executive Director
appointment. The Chairman of the Committee presents reports to the Board as appropriate to enable the Board as a whole to agree the appointments of new
Directors. The Committee meets at least once a year and otherwise as required and as determined by its members.

The terms and conditions of appointment for the Non-Executive Directors is available for inspection at the Company’s Head Office during normal working
hours. They are also available for inspection at the Company’s AGM.

Appointments to the Board
During the year the Nominations Committee considered the skill sets of the existing Non-Executive Directors. The Committee also considered the overall
make-up of the Board following Philip Burks’ decision to retire at the forthcoming AGM, and decided that it was appropriate to appoint a new Non-Executive
Director to replace Philip Burks.

The Nominations Committee appointed an external recruitment consultant to provide a shortlist of candidates to the Committee. Following a rigorous
interview process, the Committee recommended to the Board that Georgina Harvey be appointed to the Board. Georgina Harvey will join the Board as an
independent Non-Executive Director in July 2013. The Nominations Committee believes the Board benefits from this appointment.

Richard Cotton’s appointment to the Board was approved by the Nominations Committee in the prior year, albeit his appointment commenced in July 2012.

Shareholder relations
The Board aims to achieve clear reporting of financial performance to all shareholders and acknowledges the importance of an open dialogue by both
Executive and Non-Executive Directors with its institutional shareholders. The Board believes that the Annual Report and Accounts play an important part in
presenting all shareholders with an assessment of the Group’s position and prospects.

The Company has an active dialogue with its shareholders through a programme of investor meetings which include formal presentation of the full and half
year results. The Executive Directors have participated in investor conferences and meetings during the year, throughout the United Kingdom, and also in
the United States, Germany and the Netherlands.

The Board also welcomes the interest of private investors and believes that, in addition to the Annual Report and the Company’s website, the Annual General
Meeting is an ideal forum at which to communicate with investors and the Board encourages their participation. At each Board Meeting, the Board is
updated on any shareholding meetings that have taken place, and any views expressed or issues raised by the shareholders in these meetings.

Any queries raised by a shareholder, either verbally or in writing, are answered immediately by whoever is best placed on the Board to do so. Directors are
introduced to shareholders at the AGM, including the identification of Non-Executive Directors and Committee Chairmen. The number of proxy votes cast in
the resolution is announced at the AGM.

Risk management and internal control
The Group operates a rigorous system of risk management and internal control, which is designed to ensure that the possibility of misstatement or loss is
kept to a minimum. There is a comprehensive system in place for financial reporting and the Board receives a number of reports to enable it to carry out
these functions in the most efficient manner. These procedures include the preparation of management accounts, forecast variance analysis and other
ad hoc reports. There are clearly defined authority limits throughout the Group, including those matters which are reserved specifically for the Board.

The Board has applied principle C.2 of the UK Corporate Governance Code by establishing a continuous process for identifying, evaluating and managing the
significant risks the Group faces and for determining the nature and extent of the significant risks it is willing to take in achieving its strategic objectives.
The Board regularly reviews the process, which has been in place from the start of the year to the date of approval of this report and which is in accordance
with revised guidance on internal control published in October 2005 (the Turnbull Guidance). The Board is also responsible for the Group's system of
internal control and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve business
objectives, and can only provide reasonable and not absolute assurance against material misstatement or loss.

In compliance with provision C.2.1 of the Code, the Board regularly reviews the effectiveness of the Group's risk management and internal control systems.
The Board's monitoring covers all controls, including financial, operational and compliance controls and risk management. It is based principally on
reviewing reports from management to consider whether significant risks are identified, evaluated, managed and controlled and whether any significant
weaknesses are promptly remedied and indicate a need for more extensive monitoring. The Board has also performed a specific assessment for the
purpose of this annual report. This assessment considers all significant aspects of risk management and internal control arising during the period
covered by the report, including the work carried out by the Group’s Store Compliance team. The Audit Committee assists the Board in discharging its
review responsibilities.

A formal risk identification and assessment exercise has been carried out resulting in a risk framework document summarising the key risks, potential
impact and the mitigating factors or controls in place. The Board have a stated policy of reviewing this risk framework at least once a year or in the event
of a material change. The risk identification process also considered significant non-financial risks.

During the reviews, the Directors:

> challenged the framework to ensure that the list of significant risks to business objectives is still valid and complete;
> considered new and emerging risks to business objectives and included them in the framework if significant;
> ensured that any changes in the impact or likelihood of the risks are reflected in the risk framework; and
> ensured that there are appropriate action plans in place to address unacceptable risks.

The results of the exercise have been communicated to the Board and the Audit Committee. This was in the form of a summary report which included:

> a prioritised summary of the key risks and their significance;
> any changes in the list of significant risks or their impact and likelihood since the last assessment;
> new or emerging risks that may become significant objectives in the future;
> progress on action plans to address significant risks; and
> any actual or potential control failures or weaknesses during the period (including “near misses”).

During the course of its review of the risk management and internal control systems, the Board has not identified, nor been advised of any failings or
weaknesses which it has determined to be significant, consistent with the prior year. Therefore, a confirmation in respect of necessary actions has not been
considered appropriate.

The principal areas of risk that the Group faces are considered overleaf.

Report on Corporate Governance (continued)

Self storage market risk
The UK economy has continued its slow recovery from the recession. Self storage has proved relatively resilient through the crisis, with our revenues and
earnings increasing over the last three years.

Self storage is a relatively immature market in the UK compared to other self storage markets such as the United States and Australia, and we believe has
further opportunity for growth. Awareness of self storage and how it can be used by domestic and business customers is relatively low throughout the UK,
although higher in London. The rate of growth of branded self storage on main roads in good locations has historically been limited by the difficulty of
acquiring sites at affordable prices and obtaining planning consent. The lack of availability of credit within the economy has further reduced this rate of
growth since the start of the downturn, and over the last three or so years new store openings within the sector have slowed to a trickle.

Our performance during the downturn has been relatively resilient, although not immune. We believe that the resilience of our performance is due to a
combination of factors including:

> a prime portfolio of freehold self storage properties;
> a focus on London and the South East, which has proved more resilient during the downturn and where the drivers in the self storage market are at

their strongest and the barriers to competition are at their highest;

> the strength of operational and sales management;
> continuing innovation to deliver the highest levels of customer service;
> the UK’s leading self storage brand, with high public awareness and online strength; and
> strong cash flow generation and high operating margins.

We have a large current storage customer base of over 38,000 spread across the portfolio of open stores and many thousands more who have used
Big Yellow over the years. In any month, customers move in and out at the margin resulting in changes in occupancy. Despite the current economic
environment, this has remained a seasonal business and typically we see growth over the spring and the summer months, with the seasonally weaker
periods being the winter months.

The performance in terms of occupancy, revenue and EBITDA of our stores can be seen from the Portfolio Summary on page 30.

Property risk
Our management has significant experience in the property industry generated over many years and in particular in acquiring property on main roads in
high profile locations and obtaining planning consents. We do take planning risk where necessary, although the current property market will in our view
provide more opportunities to buy sites on a conditional basis. The planning process remains difficult with some planning consents taking in excess of
twelve months to achieve, although given we have planning consent on all bar one site, the risk to the Group has reduced significantly from prior years.

We manage the construction of our properties very tightly. The building of each site is handled through a design and build contract, with the fit out project
managed in-house using an established professional team of external advisers and sub-contractors who have worked with us for many years to our Big
Yellow specification.

Treasury risk
Our financing policy is to fund our current needs through a mix of debt, equity and cash flow to allow us to selectively build out the remaining development
pipeline and achieve our strategic growth objectives, which we believe improve returns for shareholders.

We aim to ensure that there are sufficient medium term facilities in place to finance our committed development programme, secured against the freehold
portfolio, with debt serviced by our strong operational cash flows.

We have a 15 year fixed rate loan in place from Aviva Commercial Finance Limited. For our bank debt, we borrow at floating rates of interest and use swaps
to hedge our interest rate exposure. Our policy is to have at least 60% of our total borrowings fixed, with the balance floating paying margin over LIBOR. At
31 March 2013 we had fixed rate swaps in place over 50% of our outstanding bank borrowings, coupled with the loan from Aviva, resulting in 71% of the
Group’s total borrowings being fixed.

The Group does not hedge account its interest rate derivatives, all movements in fair value are taken through the statement of comprehensive income.
The Group regularly monitors its counterparty risk. The Group monitors compliance with its banking covenants closely. During the year it complied with
all its covenants, and is forecast to do so for the foreseeable future.

Interest cover and balance sheet risk
The Group reviews its current and forecast projections of cash flow, borrowing and interest cover as part of its monthly management accounts. In addition,
an analysis of the impact of significant transactions is carried out regularly, as well as a sensitivity analysis assuming movements in interest rates and
occupancy in the stores on gearing and interest cover.

Credit risk
Our customers are required to pay a deposit when they start to rent a self storage room and are also required to pay in advance for their four-weekly
storage charges. The Group is therefore not exposed to a significant credit risk. 79% of our current customers pay by direct debit; however of new customers
moving into the business in the last year 85% have paid by direct debit. Businesses often prefer to pay by cheque or BACS. Since the start of the downturn in
economic activity, we have not seen an increase in the levels of bad debts and arrears. In the year to 31 March 2013 our bad debt expense represented
0.17% of revenue in the year (2012: 0.06%).

Taxation risk
The Group is exposed to changes in the tax regime affecting the cost of corporation tax, VAT and Stamp Duty Land Tax (“SDLT”), for example, the change in
the year of the imposition of VAT on self storage from 1 October 2012. We regularly monitor proposed and actual changes in legislation with the help of our
professional advisers, through direct liaison with HMRC, and through trade bodies to understand and, if possible, mitigate or benefit from their impact.

Real Estate Investment Trust (“REIT”) risk
The Group converted to a REIT in January 2007. The Group is therefore exposed to potential tax penalties or loss of its REIT status by failing to comply with
the REIT legislation. The Group has internal monitoring procedures in place to ensure that the appropriate rules and legislation are complied with. To date all
REIT regulations have been complied with.

Human resources risk
Our staff are key to our success and we are exposed to a risk of high staff turnover, and a risk of the loss of key personnel. We have developed a
professional, lively and enjoyable working environment and believe our success stems from attracting and retaining the right people. We encourage all our
staff to build on their skills through appropriate training and regular performance reviews. We believe in an accessible and open culture and everyone at all
levels is encouraged to review and challenge accepted norms, so as to contribute to the performance of the Group.

Reputational risk
Big Yellow’s reputation with all its stakeholders is something we value highly and will always look to protect and enhance. We aim to communicate clearly
with our customers, suppliers, local authorities and communities, employees and shareholders and to listen to and take account of their views. Big Yellow’s
intranet and website are important avenues of communication for both employees and shareholders.

Security risk
The safety and security of our customers and stores remains a key priority. To achieve this we invest in state of the art access control systems, individual
room alarms, digital CCTV systems, intruder and fire alarm systems and the remote monitoring of all our stores out of our trading hours. We are the only
major operator in the UK self storage industry that has every room in every store individually alarmed.

We have implemented customer security procedures in line with advice from the Police and continue to work with the regulatory authorities on issues of
security, reviewing our operational procedures regularly. The importance of security and the need for vigilance is communicated to all store staff and
reinforced through training and routine operational procedures. We have continued to run courses for all our staff to enhance the awareness and
effectiveness of our procedures in relation to security.

Internal audit
The Group does not have a formal internal audit function because the Board has concluded that the internal controls systems discussed above are sufficient
for the Group at this time. However, the Group employs a Store Compliance Manager responsible for reviewing store operational and financial controls. He
reports to the Chief Financial Officer. The Store Compliance Manager visits each operational store twice a year to carry out a detailed store audit. These
audits are unannounced and the Store Compliance Manager carries out detailed tests on financial management within the stores, administrative standards,
and operational standards. This role is supported by an Assistant Store Compliance Manager, enabling additional work and support to be carried out across
the Group’s store portfolio. Part of the store staff’s bonus is based on the scores they achieve in these audits. The results of each audit are reviewed by the
Chief Financial Officer and the Head of Store Operations.

Going concern
A review of the Group’s business activities, together with the factors likely to affect its future development, performance and position are set out on pages
18 to 29 of the Business and Financial Reviews. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are shown in the
balance sheet, cash flow statement and accompanying notes in the financial statements. Further information concerning the Group’s objectives, policies
and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its
exposures to credit risk and liquidity risk can be found in this Report and in the Directors’ Report.

After reviewing Group and Company cash balances, borrowing facilities, forecast valuation movements and projected cash flows, the Directors believe that
the Group and Company have adequate resources to continue operations for the foreseeable future. In reaching this conclusion the Directors have had
regard to the Group’s operating plan and budget for the year ending 31 March 2014 and projections contained in the longer term business plan which covers
the period to March 2018. The Directors have considered carefully the Group’s trading performance and cash flows as a result of the uncertain global
economic environment and the other principal risks to the Group’s performance and are satisfied with the Group’s positioning. For this reason, they continue
to adopt the going concern basis in preparing the financial statements.

Report on Corporate Governance (continued)

Directors’ responsibilities
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable laws and regulations.

Company law requires the Directors to prepare such financial statements for each financial year. Under that law the Directors are required to prepare the
Group financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and Article 4 of the
IAS Regulation and have also chosen to prepare the parent Company financial statements under IFRSs as adopted by the European Union. Under Company
law the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of
the profit or loss of the Company for that period. In preparing these financial statements, International Accounting Standard 1 requires that the Directors:

> properly select and apply accounting policies;
> present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
> provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of

particular transactions, other events and conditions on the entity’s financial position and financial performance; and

> make an assessment of the Company’s ability to continue as a going concern.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in
the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Directors' responsibility statement
We confirm that to the best of our knowledge:

the financial statements, prepared in accordance with International Financial Reporting Standards give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and
the Business Review, which is incorporated into the Directors' Report, includes a fair review of the development and performance of the business and
the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and
uncertainties that they face.

By order of the Board

Shauna Beavis
Secretary
20 May 2013

Audit Committee Report

Summary of the role of the Audit Committee
The Audit Committee is appointed by the Board from the Non-Executive Directors of the Group. The Audit Committee’s terms of reference include all matters
indicated by Disclosure and Transparency Rule 7.1 and the UK Corporate Governance Code. The terms of reference are considered annually by the Audit
Committee and are then referred to the Board for approval.

The Audit Committee is responsible for:

> monitoring the integrity of the financial statements of the Group and any formal announcements relating to the Group’s financial performance and

reviewing significant financial reporting judgements contained therein;

> reviewing the Group’s internal financial controls and the Group’s internal control and risk management systems, including consideration of the need for

an internal audit function;

> making recommendations to the Board for a resolution to be put to the shareholders for their approval in general meetings, on the appointment of the

external auditor and the approval of the remuneration and terms of engagement of the external auditor;

> reviewing and monitoring the external auditor’s independence and objectivity and the effectiveness of the audit process, taking into consideration

relevant UK professional and regulatory requirements; and

> developing and implementing a policy on the engagement of the external auditor to supply non-audit services, taking into account relevant guidance

regarding the provision of non-audit services by the external audit firm.

The Audit Committee is required to report its findings to the Board, identifying any matters on which it considers that action or improvement is needed, and
make recommendations on the steps to be taken.

Composition of the Audit Committee
The members of the Audit Committee are:

Mark Richardson (Chairman)
Richard Cotton
Tim Clark
Steve Johnson

Richard Cotton was appointed to the Committee in the year upon his appointment to the Board. Georgina Harvey will join the Committee upon her
appointment to the Board.

Membership of the Committee is reviewed by the Chairman of the Committee and the Executive Chairman, who is not a member of the Audit Committee, at
regular intervals and they recommend new appointments to the Nominations Committee for onward recommendation to the Board. Appointments to the
Audit Committee are for an initial period of three years, and are extendable by additional three year periods.

The Audit Committee structure requires the inclusion of one financially qualified member (as recognised by the Consultative Committee of Accountancy
Bodies). Currently Mark Richardson, as a Fellow of the Institute of Chartered Accountants of England and Wales, fulfils this requirement. All Audit Committee
members are expected to be financially literate.

The Committee is comprised of four Non-Executive Directors, a majority of whom have to be deemed independent, with a minimum of three members at any
time. Two members constitute a quorum.

The Group provides an induction programme for new Audit Committee members and ongoing training to enable all of the Committee members to carry out
their duties. The induction programme covers the role of the Audit Committee, its terms of reference and expected time commitment by members and an
overview of the Group’s business, including the main business and financial dynamics and risks. New Committee members also meet some of the Group’s
staff. Ongoing training includes attendance at formal conferences, internal company seminars and briefings by external advisers.

The Board expects the Audit Committee members to have an understanding of:

> the principles of, contents of, and developments in financial reporting including the applicable accounting standards and statements of

recommended practice;

> key aspects of the Group’s operations including corporate policies, Group financing, products and systems of internal control;
> matters that influence or distort the presentation of accounts and key figures;
> the principles of, and developments in, Company law, sector-specific laws and other relevant corporate legislation;
> the role of external auditing and risk management;
> the regulatory framework for the Group’s businesses; and
> environmental and social responsibility best reporting practices.

The Committee have reviewed the arrangements for “whistleblowing” by employees to ensure that there is a consistent policy in the Group to enable employees
to voice concerns particularly in respect of possible financial reporting improprieties. A whistleblowing policy is included in the employee handbook.

Audit Committee Report (continued)

Meetings
The Audit Committee is required to meet three times per year and has an agenda linked to events in the Group’s financial calendar. The agenda is
predominantly cyclical and is therefore approved by the Audit Committee Chairman on behalf of his fellow members. Each Audit Committee member has the
right to require reports on matters of interest in addition to the cyclical items.

The Audit Committee invites the Chief Executive, Chief Financial Officer, Financial Controller, and senior representatives of the external auditor to attend all of
its meetings in full, although it reserves the right to request any of these individuals to withdraw. Other senior management are invited to present such
reports as are required for the Committee to discharge its duties.

Overview of the actions taken by the Audit Committee to discharge its duties
Since the beginning of the financial year the Audit Committee has:

> reviewed the March 2012 report and financial statements, the September 2012 half-yearly report and the trading updates issued in July and January.
As part of this review the Committee received a report from the external auditor on their audit of the annual report and financial statements and review
of the half-yearly report;

> considered the output from the Group-wide process used to identify, evaluate and mitigate risks;
> reviewed the effectiveness of the Group’s internal controls and disclosures made in the annual report and financial statements on this matter;
> reviewed and agreed the scope of the audit work to be undertaken by the auditor;
> agreed the fees to be paid to the external auditor for their audit of the March 2013 financial statements and September half-yearly report;
> undertaken an assessment of the qualification, expertise and resources, and independence of the external auditor and the effectiveness of the audit

process. This included consideration of a report on the audit firm’s own quality control procedures and the audit firm’s annual transparency report, and
the report produced by the Audit Inspection Unit on the audit firm;

> considered the audit partner and audit firm rotation;
> assessed the risks associated with the possible withdrawal of the external auditor from the market;
> met the Group’s external valuers;
> undertaken an evaluation of the performance of the external auditor; and
> reviewed its own effectiveness.

External auditor
The Audit Committee is responsible for the development, implementation and monitoring of the Group’s policy on external audit. The policy assigns oversight
responsibility for monitoring the independence, objectivity and compliance with ethical and regulatory requirements to the Audit Committee, and day-to-day
responsibility to the Chief Financial Officer. The policy states that the external auditor is jointly responsible to the Board and the Audit Committee and that
the Audit Committee is the primary contact.

The Group’s policy on external audit sets out the categories of non-audit services which the external auditor will and will not be allowed to provide to the
Group, including those that are pre-approved by the Audit Committee and those which require specific approval before they are contracted for, subject to de
minimis levels. They may not provide a service which places them in a position where they may be required to audit their own work. Specifically, they are
precluded from providing services relating to bookkeeping, financial information system design and implementation, appraisal or evaluation services,
actuarial services, any management functions, investment banking services, legal services unrelated to the audit or advocacy services.

To fulfil its responsibility regarding the independence of the external auditor, the Audit Committee reviewed:

> the external auditor’s plan for the current year, noting the role of the senior statutory audit partner, who signs the audit report and who, in accordance

with professional rules, has not held office for more than five years, and any changes in the key audit staff;

> the arrangements for day-to-day management of the audit relationship;
> a report identifying the number of former external audit staff now employed by the Group and their positions within the Group;
> a report from the external auditors describing their arrangements to identify, report and manage any conflicts of interest;
> the overall extent of non-audit services provided by the external auditor, in addition to its case-by-case approval of the position of non-audit services

by the external auditor; and

> the past service of the auditor who was first appointed in 2000.

To assess the effectiveness of the external auditor, the Audit Committee reviewed:

> the arrangements for ensuring the external auditor’s independence and objectivity;
> the external auditor’s fulfilment of the agreed audit plan and variations from the plan;
> the robustness and perceptiveness of the auditor in his handling of the key accounting and audit judgements; and
> the content of the external auditor’s comments on control improvement recommendations.

Regard is paid to the nature of, and remuneration received, for other services provided by Deloitte LLP to the Group and, inter alia, confirmation is sought
from them that the fee payable for the annual audit is adequate to enable them to perform their obligations in accordance with the scope of the audit.
Where non-audit services are provided, the fees are based on the work undertaken and are not success related.

In respect of the year ended 31 March 2013, the auditor’s remuneration comprised £167,000 for audit work and £137,000 for other work, principally relating
to corporation tax work.

As part of this year’s decision to recommend the re-appointment of the auditor, the Audit Committee has taken into account the tenure of the auditor and
the audit partner and the need to consider at least every five years whether there should be a full tender process. The auditor, Deloitte LLP, has been in
tenure since 2000 and the current audit partner has been in place since the audit of the current financial statements.

The Audit Committee has considered in the year the replacement for the incumbent audit partner, who has been required to rotate off the audit. Deloitte LLP
was asked to present a number of candidates for the Audit Committee to consider to replace the existing partner, along with a detailed audit proposal for the
ensuing three years. The Chairman of the Committee and the Group’s Chief Financial Officer met the candidates and considered the audit proposal from
Deloitte LLP. The Committee have approved a replacement Partner with the appropriate experience.

As a consequence of its satisfaction with the results of the activities outlined above, the Audit Committee has recommended to the Board that the external
auditor is re-appointed.

The Committee is supportive of the new provision in the UK Code requiring FTSE 350 companies to put the provision of external audit services out to tender
at least every ten years. The Committee has reviewed the performance of the external auditor and is satisfied that currently Deloitte LLP provides an
appropriate level of service delivered by a team with an in-depth understanding of our business and the broader real estate sector. The Committee’s present
intention therefore is that they will review the requirement to tender the external audit closer to the time when the audit partner next rotates. There are no
contractual obligations that act to restrict the Audit Committee’s choice of external auditor.

Overview
As a result of its work during the year, the Audit Committee has concluded that it has acted in accordance with its terms of reference and has ensured the
independence and objectivity of the external auditor.

The Chairman of the Audit Committee will be available at the Annual General Meeting to answer any questions about the work of the Committee.

Approved by the Audit Committee and signed on its behalf by:

Mark Richardson
Audit Committee Chairman
20 May 2013

Corporate Social Responsibility Report

1. INTRODUCTION

Our Corporate Social Responsibility (“CSR”) Policy sets out how we manage the impact of our business on society and the environment, to control our
risks and manage our opportunities in a sustainable way. Big Yellow has been classified as having a “low environmental impact” by the Ethical
Investment Research Index Series (“EIRIS”) because it is involved in Support Services. Notwithstanding this, in order to maintain an efficient and
sustainable business for its Stakeholders, the Board has continued to commit significant resources to the environmental and social aspects of its
storage operations, real estate portfolio and new store developments.

This year we report in compliance with, and prior to, the adoption of the Companies Act Climate Change Regulation (October 2013) on reporting
Greenhouse Gas (“GHG”) Emissions for listed companies. We therefore provide a summary in the Directors’ Report of Scope 1 and 2 carbon dioxide
equivalent (CO2e) emissions using the DEFRA / DECC’s ‘Green House Gas (GHG) Conversion Factors’ for Company Reporting, as defined on 28 May 2012.
A limited level of assurance focuses on our carbon, waste, and health and safety performance data and was undertaken by Deloitte LLP in accordance
with the International Standards on Assurance Engagements 3000 (ISAE 3000). The ISAE 3000 standard provides an evaluation of both quantitative
and qualitative aspects of our CSR management and reporting.

Reporting Greenhouse Gas Emissions

Scope 1 Carbon Emissions:
Direct (on-site) GHG carbon equivalent emissions from stores from coolant replacement; flexi-office gas heating; construction ‘fit-out’ generator
gas oil; and company vehicle use.

These fuels and coolants only make up about 4.6% of our GHG emissions. Coolant ‘top-up’ or replacement in reception area air conditioners only occurs
when required, through bi-annual servicing checks. Natural gas use for heating flexi-offices within 8 of our 66 stores, are a relatively low environmental
impact compared to our Scope 2 emissions. Gas oil use in generators and associated emissions from new store construction ‘fit-out’ has fallen with the
reduction in our new store development programme. Big Yellow has one company owned diesel fuelled vehicle, which is de minimis in terms of carbon
emissions, but it is still monitored for CSR purposes.

Scope 2 Carbon Emissions:
Indirect (off-site) GHG carbon equivalent emissions from electricity supplied for store lighting use in all areas of the building; and air conditioning
for store reception areas only.

Our main business activities consist of self storage operations and the facilities management of a 66 store portfolio. National grid electricity use
constitutes 93.8% of our annual energy consumption, mainly for store lighting (both internal and external). It is a major operational cost and our most
significant environmental impact, so we have continued with our investment in energy efficient lighting programmes to assist in reducing our Scope 2
emissions in the last year.

Scope 3 Voluntary Carbon Emissions:
GHG emission indicators within our waste, water supply and landfill chains.

Waste recycling and landfill GHG emissions

Waste generation in self storage is assessed as a “low environmental impact” as customers store high value goods and generate very little waste.
Customer waste is the responsibility of our customers, unless recycling services are requested at an individual store. The majority of Big Yellow’s
non-hazardous bulk office waste is segregated by staff and recycled by our waste contractor. Waste tonnage is measured by our contractor from bulk
container volumes. Percentages of waste recycled or sent to land fill is determined from studies and estimates.

Water supply and waste water treatment GHG emissions

Water use measurement has been monitored over the last three years (with some estimation) to confirm the significance of this potential
environmental impact. It has been assessed as a “low environmental impact” for self storage operations, but Big Yellow will continue to monitor and
report this data to assess tonnes of carbon dioxide equivalent (tCO2e) for water supply chain sewage treatment emissions.

2. EXECUTIVE SUMMARY

Reduction in Scope 2 ‘Same Store’ Electricity Use and Carbon Emissions
Scope 2 emissions are from National Grid electricity use and constitute some 94% of our annual energy consumption. Over the last 5 years:

> our Scope 2 Greenhouse Gas carbon equivalent emissions have been reduced by 10.3%; and
> our carbon intensity emissions (carbon emissions compared to revenue growth) have been reduced by 25.0%.

These reductions have been achieved by further investment in our energy efficiency programmes such as motion sensor lighting, energy efficient
lamps, power-saver adaptors and zoned motion sensor lighting in both new and existing stores. Our programme of re-lamping stores with energy
efficiency LED lighting is to be continued in the year ending 31 March 2014.

2. EXECUTIVE SUMMARY (continued)

Increases in Solar Electricity Generation
Our solar electricity generation achievements are as follows:

> the income generated from our installations has increased by 126% in 2013 compared to the average achieved in 2011 and 2012;
> three large capacity (50 kWp) solar installations at New Cross, Chiswick and Barking stores began contributing carbon free electricity in 2013;

these installations contributed about 20% of each stores’ electricity use;

> solar electricity generation displaced £23,277 of National Grid electricity costs in 2013; and
> solar electricity use in 2013 has saved 108 tonnes of carbon equivalent emissions.

Scope 1 and Scope 3 Low Emission Measurements
Scope 1 emissions are ‘Direct’ or ‘On Site’ emissions and make up just 4.6% of our total carbon footprint. They are mainly from the natural gas heating in
eight of our twelve flexi-office stores and also from coolant replacement in air conditioned areas.

Scope 3 emissions are from our waste and water supply chains. Average residual waste to landfill represents only 0.13% of our combined Scope 1, 2 and
3 emissions.

For the first time, in this financial year we measured our water use and waste water treatment by metered data from water supplier invoices, to assess
the significance of these Scope 3 emissions on our business; they represent only 0.14% of our combined Scope 1, 2 and 3 emissions.

The Queen’s Award for Innovation and Sustainable development
This award was presented to Big Yellow for recognising our outstanding achievement in “Innovation and Sustainable Development”. The Award is only
presented to a limited number of companies each year, and in April 2012 we were very proud to have been one of them.

‘Green Star’ Rating by the Global Real Estate Sustainability Benchmark (“GRESB”)
We were recognised as a pan European “sector leader in sustainable development” by the GRESB report. GRESB awarded us with a “Green Star Award”
for the third consecutive year, with a global ranking of 9 out of 455 participating companies.

3. ENERGY USE, GREENHOUSE GAS EMISSIONS AND SOLAR ELECTRICITY GENERATION

Key performance indicators for annual energy use and GHG emissions
In reporting our total carbon footprint from emissions we express our total energy use, including Scope 1 and Scope 2 emissions from National
Grid supplied electricity, natural gas, gas oil, diesel and self generated solar electricity as kWh and compare their significance as percentages of our
total use.

Total energy use

All annual energy uses (kWh)

Absolute Energy Use (KWh)

2011*

2012

2013

14,904,835

14,554,103

14,769,872

2011 is our baseline year for performance measurement against peak energy use and growth.

Electricity supplied from the National Grid currently accounts for 93.8% of our energy use for store lighting (c. 60% of store energy use) and reception
area air conditioning (c. 30% of store energy use). Only 4.6% of energy use is from natural gas heating for our flexi-offices. Absolute energy use
increased in 2013 due to increased customer occupancy, one new store opening (Chiswick), the expansion of storage space at 7 stores (phase 2 fit out
works), and an increased demand for flexi-office winter heating. However, a reduction in energy use of 0.9% was still achieved in 2013, compared to the
average energy use over the last two years (14,661,987 kWh), a method used by carbon reduction certification bodies. This reduction was due to our
continued energy efficiency programmes and the slowdown in new store development growth.

Long term store electricity use

Five year summary of store grid electricity use (kWh)

2009*

2010

2011**

2012

2013

Electricity use (kWh)
‘Like for like’ electricity use (kWh)

12,866,186
12,866,186

12,730,855
12,155,700

13,925,217
12,841,965

13,674,944
12,102,561

13,846,253+
11,889,908

*
**
+

Long term baseline year (2009) comparator
Peak electricity use (2011) for short term performance comparator
Indicates data reviewed by Deloitte as part of their assurance work. See page 54 for the independent assurance report.

A five year summary of our main energy use shows a ‘peak’ in the year ended 31 March 2011. This peak electricity use follows a period of six new store
openings per year in 2009 and 2010, followed by increases in operational electricity use due to our growing store occupancy and customer numbers.
The annual electricity use in the year ended 31 March 2013 was 0.6% less than our peak year of 2011. We have chosen 2011 as our performance
baseline year for comparing shorter term energy and carbon emission. To assess the performance of our energy efficiency programmes in the longer
term, we have also compared ‘like for like’ stores in the table above. These stores’ electricity use indicates a reduction of 7.6% from the longer term
baseline year of 2009.

Corporate Social Responsibility Report (continued)

3. ENERGY USE, GREENHOUSE GAS EMISSIONS AND SOLAR ELECTRICITY GENERATION (continued)

Scope 2 Carbon Emissions
Electricity GHG carbon equivalent emissions

Scope 2, ‘same store’ electricity use (kWh) five year summary GHG emissions (tCO2e)

2009*

2010

2011

2012

2013

‘Same Stores’ (kWh)
GHG (tCO2e)
Kg CO2e / £ Revenue

12,866,186
6,896
0.12

12,155,700
6,392
0.11

12,841,965
6,683
0.11

12,102,561
6,298
0.10

11,889,908
6,187
0.09

Baseline year (average kWh use 2009 – 2012 = 12,466,603 kWh

Scope 2 Greenhouse Gas carbon emissions have been reduced by 10.3% over the last 5 years. When considering carbon emissions compared to
revenue growth over this period, our carbon intensity emissions have reduced by 25%. This reduction has been achieved by the investment in our
energy efficiency programmes such as motion sensor lighting, energy efficient lamps, power-saver adaptors and zoned motion sensor lighting in both
new and existing stores. In the year ended 31 March 2013, a new programme began of re-lamping stores with energy efficiency LED lighting and this is
to be continued in the year ending 31 March 2014.

Scope 1 Carbon Emissions
Direct GHG carbon equivalent emissions

Scope 1 GHG emission (tCO2e)

Absolute GHG (tCO2e)

Baseline year (2011)

2011*

168.5

2012

143.0

2013

336.8

Scope 1 emissions are ‘Direct’ or ‘On Site’ emission and make up only 4.6% of the total carbon footprint of the Group, mainly from natural gas heating in
eight of our twelve flexi-office stores and also from coolant replacement in air conditioned areas. These emissions increased in the relatively colder
2013 winter period compared to previous years. Also, there was the unexpected replacement of coolant which occurred in two stores this year and this
is expected to reduce in subsequent years.

Scope 1 and 2 Carbon Emissions (excluding coolant and van diesel)

Carbon intensity emissions / gross internal area and customer occupancy

2011*

2012

2013

Total Absolute kgCO2e
Kg CO2e / GIA m2
Kg CO2e / Occupied space m2

7,367,766
13.5
34.2

7,218,623
12.6
29.9

7,337,883
12.6+
30.1

*
+

Baseline year (2011)
Indicates data reviewed by Deloitte as part of their assurance work. See page 54 for the independent assurance report.

Scope 1 and Scope 2 emissions for store electricity and gas use, which are the main energy supplies used by the Group, show reductions in the years
ended 31 March 2012 and 2013 compared to the base year of 2011. Emissions per gross internal floor area have also reduced since the 2011 base year.
Store emission reductions per occupied space showed a reduction of 12.0% when compared to the baseline year 2011, reflecting the higher growth in
occupancy at our stores compared to the absolute changes in the Scope 1 and 2 emissions.

Scope 1 and 2 Total Carbon Footprint (Including store electricity, gas, coolant, generator gas oil and van diesel)

Total Carbon footprint (scope 1 & 2 GHG carbon equivalent emissions (tCO2e)

Total Scope 1 & 2 GHG Emissions (tCO2e)
‘Same store’ GHG Emissions (tCO2e)
Kg CO2e / Annual Revenue (£)

2011*

7,450
7,450
0.12

2012

7,319
7,113
0.11

2013

7,542+
7,182
0.10

*
+

Baseline year (2011)
Indicates data reviewed by Deloitte as part of their assurance work. See page 54 for the independent assurance report.

The total carbon footprint for all activities in 2013 increased from the 2011 baseline year due to increased occupancy, new store openings and
extensions to existing storage areas. The ‘same store’ emissions showed reductions in 2012 and 2013 when compared to the 2011 baseline year.
The wider scope 1 and 2 carbon intensity performance per revenue, shows a more consistent reduction over the last three years.

3. ENERGY USE, GREENHOUSE GAS EMISSIONS AND SOLAR ELECTRICITY GENERATION (continued)

Summary of solar electricity programme
Since 2008, we have invested in solar panel installations at 15 stores (23% of our portfolio), utilising the large roof spaces on each of our developments.
To date these installations have generated 588 MWh of electricity for store use.

Solar electricity generation, income and percentage of use

Annual solar generation (kWh)
Feed in Tariff income (£)
Solar electricity (kWh) percentage (%) of solar stores (15)
Solar electricity (kWh) percentage (%) of whole portfolio

2011*

2012

2013

107,074

130,380

25,848**
4.8
0.8

25,848**
5.4
0.9

207,091+
58,314
7.4
1.5+

*
**
+

Baseline year
Feed in Tariff payments backdated to April 2010, were paid in June 2011. We have averaged these across the 2 years as we are unable to indicate the exact yearly amounts.
Indicates data reviewed by Deloitte as part of their assurance work. See page 54 for the independent assurance report.

Average annual solar electricity generation for the years ended 31 March 2011 and 2012 was 118,727 kWh, indicating an increase in solar electricity of
74.4% in 2013. Solar electricity now contributes 7.4% of our total electricity use in the 15 stores with solar installations and benefits Big Yellow as it
displaces 5-20% of our grid electricity supply at those stores. Solar generation reduces our grid electricity dependency and our carbon tax. It also
increases cost savings and generates revenue.

The solar electricity generation achievements have been as follows:

Income for the years ended 31 March 2011 and 2012 averaged £25,848 per year and increased by 125.6% to £58,314 in 2013, due to the
contribution from our newest and larger capacity installations;

Three large capacity (50 kWp) solar installations at New Cross, Chiswick and Barking stores have contributed significant increases in generating
carbon free electricity, amounting to approximately 20% of each stores’ electricity use;

3. Solar electricity generation has displaced Grid electricity costs of £23,277; and

Solar electricity use has saved 108 tCO2e+, from carbon taxation (amounting to a saving of £1,296).

Summary of energy efficiency investment programme and medium to long term objectives
In the year ended 31 March 2013, Big Yellow continued with its energy efficiency and carbon reduction programmes. We committed to reduced absolute
energy use, and in particular electricity carbon equivalent emissions and carbon intensity emissions, and achieved the following strategies and objectives:

1. All new stores will now have energy saving motion sensor lighting and high efficiency internal and external LED lighting as standard;

2. All stores with T8 lights will be included in the LED investment programme for 2014 to gain an estimated 60% reduction in lighting electricity use at

those stores;

To improve upon our ‘same store’ kWh absolute reductions of 7.6% and 10.3% of Scope 2 emissions, year-on-year, over the next three years;

To improve upon our Scope 2 carbon intensity emissions per revenue which achieved a 25% reduction over the past five years;

To improve upon our Scope 1 and 2 carbon intensity emission reductions by gross internal floor area of 6.7% and by customer occupied space of
12.4% over the past three years;

To reduce total ‘same store’ GHG carbon equivalent emissions of 4.1% as a consequence of the LED lighting and improved capacity and
maintenance of the solar installation portfolio; and

7. We have completed the installation of eight smart meters on gas supplies to our flexi-offices, in addition to 22 smart meters on electricity supplies

to stores, in order to improve the accuracy of our energy consumption data and avoid estimations.

Future Store Lighting Energy Efficiency Programme
Following the conversion of 15 of our stores to LED lighting (from T8 lighting), we aim to convert a further 35 stores to this system and re-lamp some of
our external signage with LED in the financial year ending 31 March 2014. In 2015, we will review the remaining stores, signage and external lighting, as
longer term investment programmes and these will be determined by changes in lighting technology, returns on investments and the price of our
supplied electricity at that time.

Scope 3 Carbon Emissions
Store Waste Management and Voluntary Scope 3 GHG Emissions in our Supply Chain

Sorting, Recycling and Further Recycling at Landfill of Waste

2011*

2012

2013

Store Waste (t)
Store Sorted Waste and Contractor Recycled (t)
Waste to landfill (municipal classification) (t)
Recycle once sent to landfill (50%) (t)
Municipal Waste Landfill GHG emissions (kgCO2e)

Baseline year (2011)

266
191.5
74.5
37.3
10,817

263
189.4
73.6
36.8
10,672

259
189.3
69.2
34.6
10,034

Corporate Social Responsibility Report (continued)

3. ENERGY USE, GREENHOUSE GAS EMISSIONS AND SOLAR ELECTRICITY GENERATION (continued)

Scope 3 Carbon Emissions (continued)
In May 2011 we changed our waste contractor to a new supplier that recycles and manufactures cardboard, in addition to providing standard waste
collection services. Our average store waste for 2012 and 2013 (261t) reduced by 1.8% against the 2011 baseline tonnage. Average sorted waste for
2012 and 2013 was 189.4t and reduced slightly by 1.1% compared to the baseline year 2011. Average residual waste sent to landfill for 2012 and 2013
was 35.7t after further sorting and recycling. This provided a reduction of waste to landfill of 4.3%. This waste is estimated to be responsible for 10
tCO2e GHG carbon equivalent emissions within our waste supply chain. Compared to our carbon footprint of 7,542 tCO2e, this represents only 0.13% of
our combined Scope 1 and 2 total emissions.

Construction Waste Management
This financial year Big Yellow Construction completed the ‘fit-out’ of our Chiswick store which opened on 30 April 2012, and this generated some residual
construction waste. One new store development is planned in 2014 at Gypsy Corner.

Construction ‘fit-out’ waste management performance

Total tonnage (t)
Percentage of waste recycled (%)
Plasterboard 100% recycled volume (m3)

2011

147.5
93.2
104.0

2012

152.3
96.0
34.0

2013

12.9
100.0
–

Big Yellow Construction achieved 100% recycling of residual waste at Chiswick, including cardboard, plastics and metals which are in demand from
supplier ‘take back’ schemes.

Store Water Use and Voluntary Scope 3 Supply Chain Waste Water Treatment Scope 3 GHG Emissions
For the first time, in this financial year we measured our water use and waste water treatment by metered data from water supplier invoices, to assess
the significance of this aspect of our business on the environment.

Big Yellow Store Operations Water Use

Store water use (m3)
GHG emissions (tCO2e)
Store waste water treatment (m3)
GHG emissions (tCO2e)

2013

10,175
3.5
10,105
7.2

We estimated that our stores and offices used 10,175 m3 of water in the financial year ended 31 March 2013, and that the GHG carbon equivalent
emissions from our water supply chains (3.5 tCO2e) and water treatment (7.2 tCO2e) amounted to a total of 10.7 tCO2e. Compared to our total carbon
footprint of 7,542 tCO2e, this represents only 0.14 %.

4. STAKEHOLDERS

Big Yellow engages with its main stakeholders to provide information and gain useful feedback from a variety of groups, as described below.

4.1 The media, staff and customers

Big Yellow launched a new dedicated ECO web page and ‘Our Big Green Commitment’ in January 2013, and customers and staff were invited to
provide feedback. Their response was very positive and this has been a good opportunity to raise more awareness of the ‘Green Consumer Market’
and the ‘triple bottom line’ (integrating the financial, environmental and ethical aspects of our business into decision making approach that we
have adopted at Big Yellow). Various other initiatives will be considered to raise awareness of our ECO web page to existing and potential business
customers, who may want to include Big Yellow in their ‘Green’ supply chain.

4.2 Government Legislation and Standards:

The Carbon Reduction Commitment (“CRC”)
Big Yellow achieved a position in the top third of over 2,000 UK companies that participated in the Governments second CRC Energy Efficiency
Scheme League table in 2013. The table details the relative performance of all participants against their absolute and relative carbon emissions.

The Queen’s Award for Enterprise in ‘Sustainable Development’
This award was presented to Big Yellow for recognising our outstanding achievement in “Innovation and Sustainable Development”. The Award is
only presented to a limited number of companies each year, and in April 2012 we were very proud to have been one of them. To achieve this
recognition, we described our approach to how we managed customer relationships over a five year period. We explained how we contributed to the
environmental dimension of sustainable development through operational energy efficiency, increased waste recycling and enhanced biodiversity.
The Queen’s Award for Sustainable Development has provided customer PR communication opportunities through Twitter, a section in the Queen’s
Award Magazine, and a ceremony presentation at our new Chiswick Store. Our Award was also noted on the Financial Times website with a link to
our IR website.

4. STAKEHOLDERS (continued)

4.3 Investor Communications:

We were recognised as a pan European sector “leader in sustainable development” by the Global Real Estate Sustainability Benchmark (“GRESB”).
GRESB awarded us a ‘Green Star Award’ for the third consecutive year, with a global ranking of 9 out of 455 participating companies and a global
peer group ranking of 1 out of 9. Our overall score was 76%, with sub scores of 88% for sustainability ‘management and policy’ and 73% for
‘implementation and measurement’.

We were also rated by The Carbon Disclosure Project, within the CDP FTSE 350 Climate Change Report as ‘67’ (2012). Previous ratings were: ‘65’
(2010) and ‘58’ (2008).

During the next year we will continue to participate in Government programmes and industry awards to measure our CSR performance against our
peer group and to provide our Stakeholders with an “independent measurement” of our CSR activities and services.

5. STORE DESIGN AND CONSTRUCTION

Our Chiswick store opened at the start of the financial year and has an enhanced landscape area, including border trees, shrubs and a ‘Green’ roof to
encourage wildlife habitat and local biodiversity. All new stores since December 2009 have been designed with more energy efficient LED external
signage lighting. From December 2013, 15 energy efficient LED lighting installations were completed.

The tables below summarise the eco-efficient specifications and installations in our stores presented in order of opening:

Store Building Portfolio Sustainable Development and Operational Design, Specifications and Certification

Store

LED

MSL

AMR

4
4

4
4
4

4
4

4
4
4

4
4

Richmond
Croydon
Oxford
Hanger Lane
Slough
Cheltenham
Milton Keynes
Romford
Staples Corner
Southend
Luton
Wandsworth
Dagenham
Norwich
Portsmouth
Cardiff
Ilford
Battersea
Hounslow
New Malden
Guildford
Brighton
Bow
Colchester
West Norwood
Finchley North
Chelmsford
Byfleet
Orpington
Swindon
Watford
Tolworth
Beckenham
Leeds
North Kensington
Bristol Central
Tunbridge Wells
Finchley East
Bristol Ashton Gate
Kingston

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

Solar

GSHP

RWH

ECO

GTP

EPC

BREEAM

Corporate Social Responsibility Report (continued)

5. STORE DESIGN AND CONSTRUCTION (continued)

Store Building Portfolio Sustainable Development and Operational Design, Specifications and Certification (continued)

Store

LED

MSL

AMR

Solar

GSHP

RWH

ECO

GTP

EPC

BREEAM

Edmonton
Gloucester
Sutton
Ealing Southall
Barking
Balham
Fulham
Merton
Kennington
Sheffield Hillsborough
Sheen*
Birmingham
Bromley
Liverpool Edge Lane
Twickenham**
Edinburgh
Nottingham
Poole
Sheffield Bramall Lane
Reading ***
High Wycombe
Camberley
Eltham
Stockport
New Cross
Chiswick

4
4
4
4
4
4
4

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

4
4
4
4
4

4
4
4

4
4

4
4
4
4
4
4

4
4

4
4
4
4
4
4
4
4
4
4
4
4
4
4

4
4

4
4
4

4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4

LED – Internal Light Emitting Diode lamps of high efficiency (65%) and longer lifetime / LED in external signage from Reading onwards***
MSL – Motion Sensor Lighting / Zoned MSL with energy saving timers
AMR – Automatic Meter Readings for accurate electricity and gas use data measurement (including half hourly meters)
Solar – Solar panel installations for up to 20% carbon free electricity generation on store roofs
GSHP – Ground Source Heat Pumps that provide heating / cooling by heat exchange from boreholes
RWH – Rain Water Harvesting systems collect rain water from roofs or sups for WC / soft landscape irrigation
ECO – Green roofs / walls / soft landscape providing water retention, drainage and ‘Urban Green House’ cooling effects
GTP – Green travel plans provide guidance for staff modes of transport other than the car
BREEAM – Building Research Establishment Environmental Assessment Methodology ratings * Sheen and Reading BREEAM ‘Excellent’
EPC – Energy Performance Certificate for building efficiency

6. HEALTH AND SAFETY

Our Health and Safety Policy covers all of our stores, our head office, our distribution warehouse at Maidenhead and our ‘Fit-out’ construction sites.
Incidents are recorded on staff, customers, contractors and visitors. A Health and Safety Committee meets on a quarterly basis and consists of
Directors and Managers from Operations, Facilities Management and Construction. The Board receives bi-monthly reports which monitor Health and
Safety performance. Annual Store Health and Safety Meetings take place for all stores and our distribution warehouse. Agendas are provided for these
meetings via the Intranet from Facilities Management files and the minutes are reviewed by Area Managers to raise any issues with Facilities
Management or Human Resources where necessary. Health and safety performance and incidents are reported as recorded in the table below.

6.1 Big Yellow Self Storage customers, contractors and visitors

Store customer, contractor and visitor health and safety

Total number of customers (move-ins during the year)
Number of Minor injuries
Number of Reportable injuries
RIDDOR* per 100,000 customers

2011

2012

2013

51,049
41
–
–

57,604
43
–
–

65,807+
34+
3+
4.6+

*
+

RIDDOR = Reporting of Injuries, Diseases and Dangerous Occurrences Regulation 1995.
Indicates data reviewed by Deloitte as part of their assurance work. See page 54 for the independent assurance report.

There were no ‘fatal injuries’, ‘notices’ or ‘prosecutions’ during 2013. However, three ‘reportable injuries’ and 34 ‘minor injuries’ were recorded against an
increase in customer ‘move-ins’ to 65,807, compared to average customer move-ins of 54,325, for the financial years ended 31 March 2011 and 2012.
This represented an increase in move ins of 21%. ‘Reportable injuries’ increased due to a change in definition of reportable injuries including injuries ‘not
deemed to be the fault of Big Yellow’ (with effect from January 2013) and increased customer occupancy. Minor injuries reduced from an average of 42,
in the two previous years to 34 in 2013, (a reduction of 19%) indicating an increased awareness by our customers of self storage health and safety.

6. HEALTH AND SAFETY (continued)

Minor injuries were predominantly related to the handling of personal or business possessions by our customers of their removers. An improved
staff induction manual (introduced in 2012) has raised awareness for our staff on safely handling packaging materials, room clearances and in
assisting customers.

6.2 Big Yellow Self Storage staff

Store and head office staff health and safety

Average number of staff
Number of Minor injuries
Number of Reportable injuries (“RIDDOR”)
Annual injury incidence rate (“AIIR”) per 100,000 staff

2011

273
19
1
366

2012

279
12
–
–

2013

286+
16+
3+
1,049+

Indicates data reviewed by Deloitte as part of their assurance work. See page 54 for the independent assurance report.

There were no ‘fatal injuries’, ‘notices’ or ‘prosecutions’. However, there were three ‘reportable injuries’ for Big Yellow staff, partly due to a change in
definition of ‘reportable injuries’ to include ‘injuries not deemed to be the fault of Big Yellow’ in January 2013, which were previously excluded from the
scope of reporting. Minor injuries remained on average 14 for 2012 and 2013 when compared to 2011. Our Staff were given additional ‘Manual Handling’
training last year.

6.3 Big Yellow Construction Company Limited

Construction fit-out contractors and visitor health and safety

Number of Total man days
Number of Minor injuries
Number of Reportable injuries (“RIDDOR”)

2011

6,431
1
1

2012

6,511
1
–

2013

610+
–
–

Indicates data reviewed by Deloitte as part of their assurance work. See page 54 for the independent assurance report.

This year, although minor amounts of fitting out works took place at our stores, high safety standards were maintained.

No ‘fatal injuries’, ‘notices’, ‘reportable injuries’ or ‘prosecutions’ occurred indicating a well controlled environment for staff, contractors and visitors on
site. Health and safety performance continues to be reviewed in preparation for a new store development in 2014.

7. CSR PROGRAMME FOR THE YEAR ENDING 31 MARCH 2014

The CSR programme will continue to focus on energy efficiency, carbon reduction, renewable energy generation and waste reduction. This year our
programmes, objectives and targets are highlighted in the table below:
Strategy

Objectives / targets

Programmes

Carbon Emissions and
Investor Communications

Submit reported carbon performance data to the
Carbon Disclosure Project–FTSE4 Good 2013 Index
Series, to improve annual emission ratings.

Improve upon 2012 score (67) for total scope 1 and 2
emissions and increase Scope 3 reporting.

Sustainable Development
Investor Communications

Submit CSR performance data to the annual Global
Real Estate Sustainability Benchmark survey data.

Strengthen and maintain the leading position of our
sustainable real estate portfolio.

The Carbon Reduction
Commitment (“CRC”)

Energy Efficiency

Submit reported carbon performance data to the
Carbon Reduction Commitment (“CRC”) Energy
Efficiency Scheme in their Annual report to the
Environment Agency by July 2013.

Continue the energy efficient LED re-lamping
programme with a further 35 stores in the year to
31 March 2014.

Increase Solar Energy
Generation and Revenues

Increase solar PV monitoring and maintenance to
optimise electricity generation of our solar PV portfolio.

To achieve a position in the upper quartile of the UK
CRC league table.

Reduce absolute lighting kWh use and tCO2e
emissions by 30% over the next three years.

Increase solar electricity generation as a percentage of
the whole store portfolio to 5% and to > 10% for the
solar stores, over the next three years. Increase Feed
in Tariff revenues by 10% over the next year.

Store Waste Recycling

Improve recycling rates and reduce Scope 3
emissions.

A reduction in landfill waste tonnage and carbon
equivalent emissions of 1.5%.

Store Water Use

Acquire more complete and accurate water volume
data from our suppliers

Reduce our supply chain water use and water
treatment emissions by 1%.

More details of CSR policies, previous reports and awards can be found on our investor relations web site at http://bigyellow.hsprod.investis.com/csr.

Independent assurance statement by Deloitte LLP (‘Deloitte’) to Big Yellow Group PLC
(‘Big Yellow’) on their Corporate Social Responsibility Report 2013 (“Report”)

What we looked at: scope of our work
Big Yellow engaged us to perform limited* assurance procedures on selected corporate social responsibility (CSR) performance indicators for the year
ended 31 March 2013. The assured data are indicated by the + symbol in the Report.

Carbon footprint indicators:
> Absolute carbon dioxide emissions (tCO2e)
> Store electricity emissions (tCO2e)
> ‘Fit out’ diesel and electricity emissions (tCO2e)
> Store flexi-office gas emissions (tCO2e)
> Carbon intensity (Kg CO2e /m2 gross internal area)
> Carbon intensity (Kg CO2e /m2 occupied space)
> Carbon dioxide saved by renewable energy (tCO2e)
Electricity use and renewable energy generation:

> Electricity use (kWh)
> Total renewable energy (kWh)
> Renewable energy percentage of total energy use

Staff health and safety:

> Average number of staff
> Minor Injuries
> Reportable injuries (RIDDOR)
> Annual Injury Incidence rate (AIIR) per 100,000 staff
> Notices

What we found: our assurance opinion
Based on the assurance work we performed, nothing has come to our attention that causes us to believe that the selected CSR performance indicators are
materially misstated.

What standards we used: basis of our work and level of assurance
We carried out limited assurance in accordance with the International Standards on Assurance Engagements 3000 (ISAE 3000). To achieve limited
assurance ISAE 3000 requires that we review the processes and systems used to compile the areas on which we provide assurance. It does not include
detailed testing of source data or the operating effectiveness of processes and internal controls. This is designed to give a similar level of assurance to that
obtained in the review of interim financial information.

The evaluation criteria used for our assurance are the Big Yellow Group definitions and basis of reporting as described at: bigyellow.hemscottir.com/csr

What we did: our key assurance procedures
Considering the risk of material error, our multi-disciplinary team of CSR assurance specialists planned and performed our work to obtain all the information
and explanations we considered necessary to provide sufficient evidence to support our assurance conclusion. Our work was planned to mirror Big Yellow’s
own group level compilation processes, tracing how data for each indicator within our assurance scope was collected, collated and validated by corporate
head office and included in the Report.

Key procedures we carried out included:

> Gaining an understanding of Big Yellow’s systems through interview with management responsible for CSR management and reporting systems at

corporate head office

> Reviewing the systems and procedures to capture, collate, validate and process source data for the assured performance data included in the Report

Big Yellow’s responsibilities
The Directors are responsible for the preparation of the Report and for the information and statements contained within it. They are responsible for
determining the CSR goals, performance and for establishing and maintaining appropriate performance management and internal control systems from
which the reported information is derived.

Deloitte’s responsibilities, independence and team competencies
Our responsibility is to independently express a conclusion on the performance data for the year ended 31 March 2013. We performed the engagement in
accordance with Deloitte’s independence policies, which cover all of the requirements of the International Federation of Accountants Code of Ethics and in
some cases are more restrictive. We confirm to Big Yellow that we have maintained our independence and objectivity throughout the year, including the fact
that there were no events or prohibited services provided which could impair that independence and objectivity in the provision of this engagement.

This report is made solely to Big Yellow in accordance with our engagement letter. Our work has been undertaken so that we might state to the Company
those matters we are required to state to them in an assurance report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than Big Yellow for our work, for this report, or for the conclusions we have formed.

Deloitte LLP
London, United Kingdom
15 May 2013

The levels of assurance engagement are defined in ISAE 3000. A reasonable level of assurance is similar to the audit of financial statements; a limited level of assurance is similar
to the review of a half year financial report.

Directors’ Report

The Directors present their annual report on the affairs of the Group, together with the audited financial statements and auditor’s report for the year ended
31 March 2013. The Report on Corporate Governance on pages 36 to 42 forms part of this report.

Principal activity
The principal activity of the Company and its subsidiaries is the provision of self storage and related services.

The subsidiary and associated undertakings principally affecting the profit and net assets of the Group in the year are listed in note 29 of the
financial statements.

Review of business
A detailed account of the Group’s progress during the year and its future prospects is set out in the Chairman’s statement on pages 16 and 17. Detailed
Business and Financial Reviews have been prepared and are set out on pages 18 to 29, and more specifically as follows:

> the business objectives and strategy is set out on page 17;
> the financing objectives are set out on page 40;
> the Group’s going concern review is set out on page 41;
> the principal risks and uncertainties within the business are set out in the Risk Management section on page 39; and
> the key quantitative and qualitative performance indicators are included within the Highlights (see page 14), Portfolio Summary (see page 30) and

Financial Review (see page 24).

The Chairman’s statement, the Business Review, the Financial Review, the Report on Corporate Governance and the Corporate Social Responsibility Report
are incorporated by reference into the Directors’ Report.

Financial instruments
The financial risk management objectives and policies of the Group, along with any details of exposure to any liquidity and cash flow risk are set out on
page 40, and notes 2 and 18 to the financial statements.

Results and dividends
The consolidated statement of comprehensive income is set out on page 72 of the financial statements.

The Directors are recommending the payment of a final dividend of 6 pence per share for the year (2012: 5.5 per ordinary share). An interim dividend of
5 pence per share was paid in the year (2012: 4.5 per share). A property income dividend of 8 pence is payable for the year, of which 5 pence per share
was paid with the interim dividend, and 3 pence per share was proposed for the final dividend.

Subject to approval by shareholders at the Annual General Meeting to be held on 19 July 2013, the final dividend will be paid on 24 July 2013. The Ex-Div date
is 12 June 2013 and the Record date is 14 June 2013.

Share capital
Details of the authorised and issued share capital, together with details of the movements in the Company's issued share capital during the year are shown
in note 22. The Company has one class of ordinary shares which carry no right to fixed income. Each share carries the right to one vote at general meetings
of the Company.

There are no specific restrictions on the size of a holding nor on the transfer of shares, which are both governed by the general provisions of the Articles of
Association and prevailing legislation. The Directors are not aware of any agreements between holders of the Company's shares that may result in
restrictions on the transfer of securities or on voting rights.

Details of employee share schemes are set out in note 23, and details of shares held in treasury and by the Company’s Employee Benefit Trust are set out
in note 22.

No person has any special rights of control over the Company's share capital and all issued shares are fully paid.

With regard to the appointment and replacement of Directors, the Company is governed by its Articles of Association, the Code, the Companies Acts and
related legislation. The Articles themselves may be amended by special resolution of the shareholders. The powers of Directors are described in the Report
on Corporate Governance on page 36.

There are a number of agreements that take effect, alter or terminate upon a change of control of the Company such as commercial contracts, bank loan
agreements, property lease arrangements and employees' share plans. None of these are considered to be significant in terms of their likely impact on the
business of the Group as a whole. Furthermore, the Directors are not aware of any agreements between the Company and its Directors or employees that
provide for compensation for loss of office or employment that occurs because of a takeover bid.

During the year the Company issued 369,935 shares to satisfy the exercise of share options (2012: 332,519).

Directors’ Report (continued)

Directors and their interests
The Directors of the Company who served throughout the year and to the date of approval, except as noted of the financial statements were as follows:

Philip Burks
Tim Clark
Richard Cotton (appointed 10 July 2012)
James Gibson
Steve Johnson
Adrian Lee
Mark Richardson
Jonathan Short (resigned 10 July 2012)
John Trotman
Nicholas Vetch

Details of the interests of the Directors in the shares of the Company (including share options) are set out in the Report on Directors’ Remuneration on
pages 59 to 68.

Biographical details of the Executive and Non-Executive Directors are set out on page 70.

Reappointment of Directors
The Directors listed above constituted the Board during the year.

Following a performance appraisal process, the Board has concluded that the Directors retiring by rotation are effective, committed to their roles and should
continue in office.

All of the Directors will retire in accordance with the UK Corporate Governance Code and with the exception of Philip Burks, will offer themselves for
re-election at the Annual General Meeting.

The biographies of all Directors standing for re-election are included on page 70.

Directors’ and officers’ liability insurance
The Company purchases liability insurance covering the Directors and officers of the Company and its subsidiaries.

Payment of suppliers
The policy of the Group is to settle supplier invoices within the terms of trade agreed with individual suppliers. Trade creditor days of the Group for the year
ended 31 March 2013 were 25 days (2012: 21 days). This represents the ratio, expressed in days, between the amounts invoiced to the Group by its
suppliers in the year and the amounts due, at the year end to trade creditors within one year.

Properties
The changes in investment and development property during the year and details of property valuations at 31 March 2013 are shown in notes 13a and 14 to
the financial statements. Further commentary on our investment property portfolio is contained in the Business and Financial Review.

Disclosure of Greenhouse Gas (“GHG”) Emissions
Companies Act 2006; Climate Change, the GHG Emissions Director’s Reports Regulations 2013

This year the UK Government announced that all firms listed on the London Stock Exchange will have to disclose their GHG emissions in their Directors’
Reports. The new rules are intended to encourage companies to better manage their impact on the environment, their energy consumption and the link
between profitability and GHG emissions growth. Using resources responsibly is in our business's own interests.

From October 2013, all listed companies are required to report annual quantities of GHG emissions (measured as Carbon Dioxide Equivalent (CO2e))
as follows:

> Scope 1 – direct emission sources, such as our flexi-office gas heating, construction fit out generator ‘gas oil’, Company van diesel fuel, and store

portfolio coolers and air conditioner top up or replacement;

> Scope 2 – indirect or offsite power station electricity supply to our stores; and
> Scope 3 – other voluntary GHG emissions, in particular from our waste and water supply chains.

In preparation for this regulation we have revised our “Basis of Reporting” methodology and restated CSR data from our financial years ended 31 March
2011 and 2012, as comparator years for 2013 and future years.

Summary of Scope 1 and 2 Total Carbon Footprint (GHG carbon equivalent emissions (tCO2e))
Including store electricity, gas, coolant, generator gas oil and van diesel

Total Scope 1 and 2 GHG Emissions (tCO2e)
‘Same Store’ GHG Emissions (tCO2e)
Kg CO2e / Annual Revenue (£)

Baseline year (2011)

2011*

7,450
7,450
0.12

2012

7,319
7,113
0.11

2013

7,542
7,182
0.10

The total carbon footprint for all Big Yellow activities in 2013 increased from the 2011 baseline year due to increased store occupancy, new store openings and
extensions to our existing storage areas. However, the ‘same store’ emissions showed reductions in 2012 and 2013 when compared to the 2011 baseline year.
The wider measurement of Scope 1 and 2 carbon intensity performance per revenue, shows a more consistent reduction over the last three years.

We have complied with the following assurance requirements in our Report:

> used our ‘financial control’ organisational boundary to identify our Scope 1 and 2 emissions;
> disclosed relevant information on ‘absolute carbon’ and ‘carbon intensity’ emissions; and
> provided relevant data that can be disclosed annually for comparison.

A ‘peak energy use’ base year, depending on new store development and customer occupancy growth, was identified as the year ended 31 March 2011.

Further information on GHG emissions and on other sustainable initiatives at Big Yellow is provided in our Corporate Social Responsibility Report.

Donations
Charitable donations totalling £25,000 (2012: £20,000) were made to UK resident charities in the year. The Group also provided free storage to certain
selected charities during the year forgoing income of £530,000 (2012: £526,000).

No political donations were made in either year.

The Group encourages employee involvement in charitable giving and frequently matches any amounts raised by individuals. Key management have been
allocated budgets to support local charitable causes and the community.

Substantial shareholdings
On 20 May 2013, the Company had been notified, in accordance with Chapter 5 of the Disclosure and Transparency rules, of the following voting rights as a
shareholder of the Company.

FMR LLC
Directors
Old Mutual PLC
Blackrock Inc
AXA SA
Morgan Stanley Invs Mgmt Ltd

No. of
ordinary
shares

16,995,602
16,501,308
7,118,200
6,620,239
6,578,222
6,248,875

Percentage
of voting
rights and
issued
share capital

12.0%
11.7%
5.0%
4.7%
4.7%
4.4%

These holdings were unchanged from those that the Company had been notified of at 31 March 2013, with the exception of FMR LLC, whose holding at
31 March 2013 was 16,820,179, representing 11.9% of the issued share capital.

Employees
Adrian Lee, Operations Director, has responsibility to the Board for all employee matters.

The Group seeks to ensure employee commitment to its objectives in a number of ways. Strategic changes are communicated directly to all staff who are
encouraged to address queries to the Executive Directors. The Directors’ executive meetings are frequently held in stores and in addition Directors and
senior management visit the stores on a regular basis. Furthermore, there are regular team briefings at store level to provide employees with information
about the performance of and initiatives in their store. A wide range of information is also communicated across the Group’s Intranet, including the e-
publication of the Group’s financial results and all press releases, the publication of a quarterly newsletter, and the publication of a weekly operations
bulletin. The Group carries out annual surveys of employee satisfaction.

Employees are encouraged to participate in the Group’s performance through Employee Share Schemes and performance related bonuses.

Customer service is a key priority of the Group and this is achieved through recruiting good people and investing in training and development leading to high
levels of retention. The Group’s recruitment policy is committed to promote equality, judging neither by race, nationality, religion, age, gender, disability,
sexual orientation, nor political opinion and to treat all stakeholders fairly.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of
members of staff becoming disabled every effort is made to ensure that their employment with the Group continues and that appropriate training is
arranged. It is the policy of the Group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that
of other employees.

Directors’ Report (continued)

Health and safety
The Board recognises the importance of maintaining high standards of health and safety for everyone who may be affected by our business.

The Group’s Health and Safety policy is reviewed on an ongoing basis. It is applied in two distinct areas – construction and operations. The policy states that
all employees have a responsibility for health and safety but that managers have special responsibilities. Additional duties are placed on Adrian Lee,
Operations Director, to keep the Board advised on health and safety issues, compliance with the policy in respect of construction activity and store
operations respectively.

The Group has a Health and Safety Committee, which meets quarterly and comprises Adrian Lee and appointed managers. They meet to discuss any issues
that have been reported from meetings held at head office and the stores, and any construction sites.

In addition, the Group has appointed an external consultant to review policy and perform audits of stores on a rolling programme to ensure the
implementation of the Group’s Health and Safety policies. Health and Safety audits are also carried out by external consultants on each construction site
prior to the opening of a store.

A review of health and safety for the year is included within the Corporate Social Responsibility Report on pages 52 and 53.

Annual General Meeting
The notice for the 2013 Annual General Meeting is distributed as a separate document. The meeting will be held at Holborn Bars, 138-142 Holborn, EC1N 2NQ
on 19 July 2013.

Auditor and disclosure of information to auditor
In respect of each Director of the Company, at the date when this report was approved, to the best of their knowledge and belief:

> so far as each Director is aware, there is no relevant audit information of which the Company’s auditor is unaware; and
> each Director has taken all the steps that he might have reasonably been expected to take as a Director in order to make himself aware of any relevant

audit information and to establish that the Company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with s418 of the Companies Act 2006.

Auditor
The auditor, Deloitte LLP has expressed their willingness to continue in office as auditor and a resolution to reappoint them will be proposed at the
forthcoming Annual General Meeting.

Approved by the Board of Directors and signed on behalf of the Board

Shauna Beavis
Secretary
20 May 2013

Remuneration Report

Introduction from the Remuneration Committee Chairman
Dear Shareholder

I am pleased to introduce the Directors’ Remuneration Report for the year ended 31 March 2013. This report has been prepared by the
Remuneration Committee and approved by the Board.

The Group’s performance has been strong given the underlying economic conditions and the imposition of VAT on self storage in October, with
another year of revenue, earnings, cash flow and dividend growth. The Group has also completed the full refinancing of its banking facilities and
raised £35.8 million through an equity placing during the year.

The Committee believes that a key strength of the executive team has been its ability to react quickly to changing market conditions, revising
business strategy and direction as needed. This can be illustrated by the Pramerica joint venture at the end of 2007, the successful early
refinancing in 2008 of facilities due to expire in 2010, securing in April 2012, through the new loan from Aviva, the first ever long-term loan by an
insurance company to self storage in Europe, and the equity placing in January 2013. It is this strength that the Committee looks to reflect in the
approach to remuneration.

The Committee has reviewed, in the context of the current climate surrounding executive remuneration, the various new rules and proposals
issued during the year which have an impact on the remuneration of executives of listed companies. These included the proposals on executive
remuneration and narrative reporting issued by the Department for Business Innovation and Skills which do not apply to the period covered by
this year’s report. Notwithstanding this, we have incorporated in this report those of the proposals which can practically and usefully be included
given the timing of the report and the detailed aspects of the proposed requirements which are currently available. This is in accordance with the
Committee’s objectives of ensuring that the Company adheres to best practice in the level and transparency of disclosure of executive remuneration
and the link between pay and performance. Last year, we received feedback from shareholders that, while supporting its adoption, we should given
the bespoke nature of the Long Term Bonus Performance Plan, demonstrate that the structure is appropriate for the Group. We have aimed to
address this feedback through commentary around the plan mechanics and its alignment with our business strategy in the main section of this
Remuneration Report

It is the policy of the Company to ensure that the executive remuneration packages are designed to attract, motivate and retain Directors of a high
calibre and reward the executives for enhancing value to shareholders. As a result, a substantial element of the remuneration of the Executive
Directors is structured to be dependent on the performance of the Group. In the year ended 31 March 2013, this approach was reflected in the grant
of new awards under the Long Term Bonus Performance Plan, following the expiry of the awards under the Plan in the last financial year.
Furthermore, the Company is keen to mitigate any risks and safeguard the integrity of the Executive Directors’ remuneration packages. Therefore,
on the Long Term Bonus Performance Plan, the Remuneration Committee has the ability to adjust any awards that have already provisionally
vested if subsequent performance during the three year performance period is below the targets.

In the year ended 31 March 2012, the Committee received external benchmarking advice from Pricewaterhouse Coopers, which indicated that total
Executive Director remuneration, in the absence of the Long Term Bonus Performance Plan, was significantly below the level of executives of
comparable companies and of executives of FTSE 250 listed companies. In reviewing the remuneration of the Executive Directors for the last
financial year, the Committee approved new awards under the plan which, assuming satisfaction of performance conditions and full vesting, would
bring the remuneration to a level which is slightly below median for comparable companies and FTSE 250 companies.

During the year, the Committee also reviewed the Long Term Incentive Plan award that had been granted in 2009. Despite a relatively strong
performance against the established performance conditions, median performance was not achieved and therefore under the prevailing rules the
award did not vest.

Given the Group’s continued focus on cost control and in light of the challenging economic environment, the Committee approved a bonus for the
Executive Directors for the year ended 31 March 2013 at the same rate (10%) which applied to the Big Yellow head office staff. It has also approved
minimal increases in the base salaries – in the order of 2% – for the majority of Executive Directors and a continuing freeze on the levels of pension
contributions for the year ending 31 March 2014.

Tim Clark
Chairman of the Remuneration Committee

Remuneration Report (continued)

UNAUDITED INFORMATION
This report has been prepared in accordance with Schedule 8 to the Accounting Regulations under the Companies Act 2006. The report also meets the
relevant requirements of the Listing Rules of the Financial Services Authority and describes how the Board has applied the principles relating to Directors’
remuneration in the UK Corporate Governance Code. As required by the Act, a resolution to approve the report will be proposed at the Annual General
Meeting of the Company at which the financial statements will be approved.

The Act requires the auditor to report to the Company’s members on certain parts of the Directors’ Remuneration Report and to state whether in their
opinion those parts of the report have been properly prepared in accordance with the Accounting Regulations. The report has therefore been divided into
separate sections for audited and unaudited information.

Remuneration Committee
The Company has established a Remuneration Committee which is constituted in accordance with the recommendations of the Code. The members of the
Committee at the year end were Tim Clark, Steve Johnson, Mark Richardson and Richard Cotton, who are all independent Non-Executive Directors. The
Committee is chaired by Tim Clark. Georgina Harvey will join the Committee upon her appointment to the Board.

None of the Committee has any personal financial interest (other than as shareholders), conflicts of interests arising from cross-directorships or day-to-
day involvement in running the business. The Committee makes recommendations to the Board. In making these recommendations, the Committee
consults with the Executive Chairman, Nicholas Vetch, about proposals, on a range of matters relating to the remuneration of the Executive Directors
including the levels of overall remuneration, salary and bonus, and awards and distributions under the share incentive and bonus plans.

Remuneration policy
Executive remuneration packages are designed to attract, motivate and retain Directors of the high calibre required and to reward them for enhancing value
to shareholders. Individual remuneration packages are structured to align rewards with the performance of the Company and the interests of the
shareholders. The main principles are to:

> ensure that salaries are set at a market competitive level by benchmarking against appropriate external comparators, including companies of a similar

size and sector in the FTSE 250;

> support a high performance culture by rewarding strong performance with appropriate remuneration;
> maintain a balance of fixed and performance-related pay which delivers appropriate rewards over the short, medium and longer term, with a substantial

emphasis on longer term rewards based on shares;

> align long term rewards with shareholder returns by expecting Directors to hold at least 50% of the shares vesting under these plans until a minimum

shareholding has been achieved. The shareholding is expected to be at least 1 times salary for Executive Directors; and

> ensure that the overall package reflects relevant market practice and takes account of levels of remuneration elsewhere in the Group.

The performance measurement of the Executive Directors and the determination of their annual remuneration package is undertaken by the Committee in
consultation with the Executive Chairman, save for discussions on his remuneration package. The Committee also considers pay and conditions elsewhere
in the Group, environmental, social and governance issues and risk when reviewing executive pay quantum and structure. No Director is involved in setting
his own remuneration. The remuneration of the Non-Executive Directors is determined by the full Board.

The remuneration package for the year is not considered to be above market levels for comparable companies.

There are currently five main elements of the remuneration package for Executive Directors and senior management:

Element

Salary

Annual head office bonus

Long term incentive plan

Long term bonus
performance plan

Pension

Purpose

Operation

To provide competitive fixed remuneration that will
attract and retain key employees and reflect their
experience and position in the Company.

Reviewed every twelve months and benchmarked
against appropriate market comparators.

Linked to individual performance and contribution.

To incentivise achievement of annual objectives which
support the short to medium term strategy of the
Company and applies across the head office team.

The bonus is based on the Company’s key performance
indicators.

To incentivise Executives to achieve superior returns to
shareholders over a three year period.

To retain key individuals in the medium term and align
rewards with shareholder returns.

Share awards are made annually to senior executives
and other senior management and are based on a
combination of TSR and EPS targets over a three year
period.

Continue the energy efficient LED re-lamping
programme with a further 35 stores in the year to
31 March 2014.

Three year award, based on a series of financial and non-
financial targets aligned with the annual business plan to
bring remuneration more in line with market levels.

To ensure that the total remuneration package is more
competitive and supports the Company’s strategy and
its ability to react to changing economic and business
circumstances.

To retain key individuals in the medium term and align
rewards with shareholder returns.

All executives receive a fixed contribution to their
personal pension plans.

Executive Directors’ contracts of service which include details of remuneration will be available for inspection at the Annual General Meeting.

Each component of Executive remuneration is explained below.

1. Basic salary

Basic salary is determined by the Remuneration Committee at the beginning of each financial year and when an individual changes position or
responsibility. Appropriate salary levels are set by reference to the performance, experience and responsibilities of each individual concerned and
having regard to the prevailing market conditions. Salaries are reviewed annually with changes taking effect on 1 April each year, taking into account
individual performance, market data and levels of increases applicable to other employees in the Company. The salaries for the Executive Directors for
the financial years beginning on 1 April 2012 and 2013 were as follows:

Director

James Gibson
Nicholas Vetch
Adrian Lee
John Trotman

1 April 2013

1 April 2012

% increase

£278,800
£254,200
£206,400
£180,000

£273,300
£249,200
£202,300
£165,000

2%
2%
2%
9%

The average salary increase across the Group in the year was 2%. The salary increase for John Trotman reflects his progress in his role, although it
should be noted that his salary is still, in the view of the Committee, below market levels.

Annual head office bonuses
Executive Directors participate in the Company’s annual head office bonus arrangements which were originally established in 2000. There is no
separate annual bonus plan for Executive Directors. Bonuses are discretionary and are performance related. They are assessed annually and,
determined by the Remuneration Committee and based on corporate performance during the year against the Group’s business plan for each financial
year. There is no deferrable element of the bonus, and it is non-pensionable. The maximum bonus potential is 25% of annual basic salary.

The bonus arrangements are structured so as not to encourage inappropriate risk taking. The bonuses are directly linked to the Group’s profit and
operating cash flow performance in the stores, which is then read across to the head office bonus levels. The Committee approved the payment of a
head office bonus of 10% of basic salary for the head office staff, including the Executive Directors, for the year ended 31 March 2013. The bonus paid
to the Executive Directors for the last 5 financial years are shown in the table below:

Year ended

31 March 2013
31 March 2012
31 March 2011
31 March 2010
31 March 2009

Bonus payment

10%
10%
10%
10%
Bonus waived by the Directors

3. Pension arrangements

Pension contributions of 10% of basic salary are paid into a personal pension plan for each Director.

Share incentives
Long Term Incentive Plan (the “LTIP”)
Approval was granted by shareholders at the 2004 Annual General Meeting for a Long Term Incentive Plan.

The Remuneration Committee has determined that an incentive plan using an award of nil-priced options is the most appropriate way to provide a
competitive and market-related long term equity opportunity.

The principal reasons for the Remuneration Committee favouring the use of nil-priced options are:

> the greater alignment of Executive reward with shareholder interests; and
> the reduced volatility of nil-priced options to general share price movements.

Awards are made under the LTIP on an annual basis. Individual grants of options to Executive Directors since the inception of the LTIP scheme have
been determined by the Committee. All awards to date have been approved by shareholders, through approval of the Company’s Remuneration Report.

In respect of the current year and in all future grants to Executive Directors, it is intended that the maximum annual grant of awards will not exceed
100% of a participant’s annual base salary, except where the Committee considers there to be exceptional circumstances which justify an award above
this limit.

Remuneration Report (continued)

For 2013, it is proposed that the awards made to Nicholas Vetch and James Gibson will be equal to 100% of their individual salaries. The awards for
Adrian Lee and John Trotman will be apportioned equally between them to an aggregate value of 100% of their combined salaries.

The most recent awards are shown in the table below:

Director

James Gibson
Nicholas Vetch
Adrian Lee
John Trotman

2012 grant

2011 grant

2010 grant

92,362
84,218
62,065
62,065

87,807
80,072
57,080
57,080

86,419
78,801
63,975
44,427

The LTIP awards to the Directors remain at the lower end of the market, particularly in light of salary levels for the Executive Directors.

The number of ordinary shares issuable pursuant to awards granted under this LTIP and all other employee share schemes adopted by the Company
may not be more than 10% of the ordinary share capital in any ten year period.

Any award under the LTIP that does not vest at the end of the specified performance period will lapse.

The extent to which awards granted under the LTIP vest and become exercisable is determined by reference to the Company’s total shareholder return
(“TSR”) relative to a comparator group. The level of vesting is set out below:

Total shareholder return performance level
Upper Quartile
Median to Upper Quartile
Below median

Amount of award vesting %
Full vesting (100%)
Pro rata vesting on a straight line basis (25% to 100%)
Nil

The LTIP vesting is also subject to the adjusted earnings per share (“EPS”) growth over three years exceeding inflation. This EPS underpin target must
be satisfied before any part of the LTIP award can vest.

The Committee uses the performance of companies in the FTSE Real Estate Index as the relevant benchmark of the Company’s performance. The
Committee employs a third party to report to it on whether the performance targets in respect of TSR have been met.

The Committee has considered the report on the performance of the 2009 LTIP awards. This report showed that the awards did not vest and have
therefore lapsed in full.

The Committee reserves the right to vary the Performance Condition for future grants provided that, in its reasonable judgement, the new targets are no
less challenging in the light of the Company’s business circumstances and its internal forecasts.

Sharesave scheme
The Group’s Sharesave Scheme is open to all UK employees (including Directors) with a minimum of six months’ service and meets UK HMRC approval
requirements, thus enabling all eligible employees the opportunity to acquire shares in the Company in a tax efficient manner.

The Long Term Bonus Performance Plan
Background
The Committee believes a key strength of the Executive team has been its ability to react quickly to changing market conditions, revising business
strategy and direction as needed.

The Committee received external benchmarking advice from Pricewaterhouse Coopers in 2009. The benchmarking advice led the Committee to be
concerned that the overall remuneration of the Executive Directors was ceasing to be competitive and, in particular, that salaries were at the lower end of a
range of comparable companies. Therefore, rather than increase base salaries and annual bonus potential, the Committee agreed that the most appropriate
way to reflect the Group strategy in Executive incentives, was to introduce a new performance based plan, the Long Term Bonus Performance Plan “the
LTBPP”). The plan initially involved the making of one award to each Executive Director covering a three year period from 2009 to 2012.

In the year ended 31 March 2012, the Committee received further external benchmarking advice from Pricewaterhouse Coopers, which indicated total
Executive Directors’ remuneration was still significantly below market levels. The Committee gave careful consideration to the operation of the LTBPP
and its support for the Company’s strategy through its focus on achieving a range of KPIs. The Committee remained of the view that the most
appropriate way to ensure that Executive Directors’ remuneration remained competitive, provided incentive and lock-in and minimised cost to the
Company was to make a further round of awards under the LTBPP. The Committee therefore proposed that new awards covering the three year period
to 2015 were made to the Executive Directors in 2012. Unlike for the 2009 awards, no loans were made to the Executive Directors for the new awards;
the option value was paid in full up front by each Executive Director. The new awards were approved at the Company’s AGM held in July 2012.

The structure of the LTBPP is set out below.

Mechanics
1) Summary

The Plan is structured as a share plan and operates in a similar way to a deferred bonus. Awards are subject to performance over a three year
period during which the value accruing to participants can be clawed back. Participants will be partly or wholly rewarded in shares with any
shortfall delivered in cash. Cash shortfall payments under the Plan cannot exceed 50% of any total payout due. At least 50% of any payout will
be in shares and will be subject to a further lock in.

Share incentives (continued)
2) Nature of interests and performance conditions

Under the Plan, the Executive Directors have been awarded restricted interests in ordinary shares in the Company. The interest entitles a
participant to benefit from the growth in the value (if any) of a number of ordinary shares in the Company over which the interest is acquired.
The participant’s interest is capped at growth in value of £2.00 per share from a set point. Vesting of interests is subject to performance conditions.
The Committee sets a range of performance conditions each year, both financial and non-financial, which are based on the business plan. Total
shareholder return is not used; this remains the measure for LTIP awards. The Committee annually identifies suitable indicators of future
performance against which Executive Directors should be measured. The Committee then sets the performance targets for the Plan, on the basis
of business needs and priorities it has identified. At the end of each year, the Committee indicates the extent to which interests have provisionally
vested under the Plan on the basis of the performance targets which have been set. The Committee has the right to adjust targets and, where
appropriate, introduce new targets if the business plan is changed.

Where appropriate, the Committee may claw-back any awards that have already provisionally vested if subsequent performance during the three
year period is below the targets. Interests under the Plan will not actually vest until the end of the three year performance period and nothing will
be paid out within this three year period other than in exceptional circumstances (eg a good leaver).

The Committee feels the flexibility in the Plan allows it to adapt to a rapidly changing environment. It will also ensure that any gain made by the
Executive Directors is commensurate with their performance over the period and the financial and other performance of the Company. The Plan
should avoid the disadvantage inherent in many longer term incentive arrangements, namely being constrained by performance measures set
at the outset which subsequently can prove to be out of step with the objectives of the business.

3) Vesting

If the performance conditions are satisfied and the awards vest, shares will be transferred to the Executive Directors equal to the growth in value
of the shares under award (subject to the £2.00 cap on growth in value). If there is insufficient value in these share interests to deliver the required
payout, the Executive Directors will first be entitled to exercise an option to acquire further shares to make up the shortfall, and if this is still
insufficient to deliver the required payout, a top-up cash payment will be made. However, any cash payment cannot exceed 50% of the overall
payment due to the Executive Directors.

The maximum payout in shares and cash to the Executive Directors as a whole at the end of the three year period will be up to a total of £3 million.
Based on current salary levels, this represents a maximum potential reward for each Executive Director of on average circa 110% of current salary
for each performance year.

The awards that were approved at the Annual General Meeting in July 2012 were as follows:

Director

James Gibson
Nicholas Vetch
Adrian Lee
John Trotman

Number of
shares in which
Director has
an interest

487,500
337,500
337,500
337,500

Maximum
value of
award after
three years

£975,000
£675,000
£675,000
£675,000

1,500,000

£3,000,000

As noted above, any payout will be delivered in shares as far as possible. Shares equal to 50% of the value of any payout (after permitted sales to
meet tax liabilities) will be subject to further restrictions. The Executive Directors will be required to hold half of these shares for a further year
following vesting and the other half for a further two years, less those sold to pay tax. During this holding period, the Executive Directors will not be
entitled to sell their shares. This ensures that the interests of the Executive Directors and shareholders remain aligned for up to five years.

Remuneration Report (continued)

The performance targets for the LTBPP are not disclosed for the year ahead, given the commercially sensitive nature of a number of the targets. Each
year, the Committee reports on their assessment of the key prior year targets, excluding any that are still commercially sensitive, and whether or not
management has been able to meet these targets. The targets are only adjusted during the year if material events occur that necessitate a change; for
example the introduction of VAT from 1 October 2012 gave rise to some changes in the targets in the current year. The report on the targets for the year
ended 31 March 2012 was included in the annual report for that year. The report on the targets for the year ended 31 March 2013 is summarised in the
table below:

Objective

Committee Comment

Grow the Group’s annual free cash flow from £27.4 million for the year
to 31 March 2012 to £29 million for the year to 31 March 2013.

The Group’s annual free cash flow for the year to 31 March 2013
is £30.2 million.

Reduce the Group’s net debt to £270 million at 31 March 2013
from £274 million at 31 March 2012.

Complete the £100 million 15 year Aviva loan. Complete the
refinancing of the remainder of Group’s core debt during the year.

The Group’s net debt at 31 March 2013 was £230.5 million, a significant
reduction from the targeted level, following the equity issue in January
2013 which raised £35.8 million (net of expenses). The reduction in net
debt without the placing was £7.7 million with surplus land sales and free
cash flow being used to amortise the debt.

The Group completed on £100 million loan from Aviva in April 2012. This
was the first-ever loan from an insurance company to a self storage
company in Europe.

The Group completed the refinancing of the bank loan, putting in place a
£190 million facility with Lloyds, HSBC and Santander in October 2012.

Extend the maturity of the Partnership’s debt from September 2013
to September 2016.

The Partnership loan facility provided by RBS and HSBC was extended
in October 2012 to an expiry date of September 2016.

Grow established store occupancy over the summer to 78%
and recover it to 75% at March 2013 following the normal
winter slowdown.

Grow the like for like occupancy of the wholly owned stores from
63.5% at 31 March 2012 to 66.5% by 31 March 2013, reflecting
the challenge of absorbing VAT into the business in the second half
of the year.

Grow the occupancy of the Partnership stores to 53.7% at
31 March 2013 from 43.7% occupied at the start of the year.

Established store occupancy peaked at 78.3% during the summer. It
finished March at 72.8%.

The occupancy of the wholly owned stores (excluding Chiswick which
opened in the year) at March was 65.6%.

The occupancy of the Partnership stores at 31 March 2013 was 54.6%.

Grow the average net rent per square foot across the wholly owned
stores from £26.49 per square foot to in excess of £26.70 per square
foot by September 2012, and then maintain the post VAT net rent level
recorded in October 2012 for the remainder of the financial year.

The average net rent per sq ft at 30 September 2012 was £26.96. The
post-VAT net rent level recorded in October 2012 was £25.45, which fell
by 3% in the second half of the year, as the market adjusted to VAT. Since
the year end, net rent has increased by 2.5%.

Meet forecast revenue (£69.7 million) and adjusted profit
(£25.2 million) targets reset at the interim stage following the
implementation of VAT.

Revenue for the year ended 31 March 2013 was £69.7 million, and
adjusted profit was £25.5 million.

Meet or exceed the recurring earnings per share targets of the average
consensus of the analyst community for the year to 31 March 2013.

The average consensus of the analyst community was 19.2 pence per
share. Adjusted earnings per share for the year is 19.3p.

Comply with all banking covenants and maintain income cover in
excess of two and a half, and maintain a net worth in excess of
£490 million.

All covenants have been met throughout the year. Group income cover
at 31 March 2013 was 3.3 times. Net worth is £552.6 million.

Complete the disposal of the surplus land at Chiswick.

The surplus land at Chiswick was sold for £4.8 million in the year.

Complete the Richmond hotel within budget and complete on the
disposal to Total Pension Trustees Limited.

The disposal of the Richmond hotel was completed in July for a
total consideration of £8.4 million. The construction of the hotel was
within budget.

The other targets were met in all material respects. Following careful consideration of the performance targets and actual performance of the Group and the
Executive Directors, the Committee has considered that the award in respect of the financial year ended 31 March 2013 has provisionally vested as to 85%
of its potential amount for the year. The provisional vesting percentage will be reviewed by the Committee at the end of the three year plan in March 2015.

Directors’ contracts
It is the Company’s policy that Executive Directors should have contracts with an indefinite term, providing for one year’s notice. All Executive Directors have
contracts which reflect this policy. If a contract is terminated at short notice, the Company has not waived any right which it may have at law to require the
Executive Director to mitigate his loss although the Company is entitled (at its discretion) to pay the salary to which the Executive Director would otherwise
be entitled, in lieu of notice.

The dates of the Executive Directors’ agreements are as follows:

Nicholas Vetch
James Gibson
Adrian Lee
John Trotman

31 May 2011
31 May 2011
31 May 2011
31 May 2011

Non-Executive Directors
The Non-Executive Directors do not have service contracts with the Company. Their appointments are governed by letters of appointment which are
available for inspection on request at the Company’s registered office and which will be available for inspection at the Company’s AGM. Each appointment is
for a period of up to three years, although the continued appointment of all Directors is put to shareholders at the AGM on an annual basis. In addition, the
appointment is terminable by either party giving notice of three months.

The dates of appointment of the Non-Executive Directors are as follows:

Philip Burks
Tim Clark
Richard Cotton
Mark Richardson
Steve Johnson

30 March 2007 (previously an Executive Director)
1 August 2008
10 July 2012
1 July 2008
24 September 2010

External appointments
The Executive Directors’ contracts do not allow them to engage in any other business outside the Group except where prior written consent from the
Remuneration Committee is received. The Company recognises that Executive Directors may be invited to become Non-Executive Directors of other
companies and that this can help broaden the skills and experience of a Director. Executive Directors are normally permitted to accept external
appointments with the approval of the Board and may retain the fees for the appointment.

Nicholas Vetch is a Non-Executive Director of Blue Self Storage S.L, a Spanish self storage business, and The Local Shopping REIT plc, a UK listed property
business. He receives a Non-Executive fee of €38,000 per annum from Blue Self Storage S.L and £30,000 per annum from The Local Shopping REIT plc.
James Gibson is a Non-Executive Director of AnyJunk Limited; he does not receive any fees for his services.

Non-Executive Directors’ remuneration
The remuneration of the Non-Executive Directors is determined by the Board taking into account independent surveys of fees paid to Non-Executive
Directors of comparable companies.

The structure of the Non-Executive fees has been reviewed. The Board concluded that the fee structure in place was outdated and required revision. It has
implemented a new structure of Non-Executive fees for the year ended 31 March 2014, comprising a base fee of £36,000 per annum, with an additional
£2,500 for a Committee Chairman, and an additional £2,500 for the Senior Independent Non-Executive Director (“SID”). Where a Non-Executive provides
significant specialist advice to the Group, an additional fee of £2,500 is paid. The revised fee basis is as follows:

Non-Executive

Fee for year ending
31 March 2014

Comments

Tim Clark
Richard Cotton
Georgina Harvey (from appointment on 1 July 2013)
Steve Johnson
Mark Richardson

£41,000
£38,500
£36,000
£36,000
£38,500

Chairman of Remuneration and Nominations Committee, SID
Provides additional corporate finance advice

Chairman of Audit Committee

The Board is also considering a scheme that would allow the Non-Executives to apply their net fees to acquire shares in the Company on a quarterly basis.

Non-Executive Directors cannot participate in any of the Group’s share option schemes or Long Term Incentive Plan and are not eligible to join the Group’s
pension arrangements. Philip Burks has legacy LTIPs from his time as an Executive Director.

Remuneration Report (continued)

Performance graph
The Total Shareholder Return (“TSR”) performance graph below sets out the comparison of the Company’s TSR against the FTSE All Share Index and FTSE
Real Estate Index.

TSR measures share price growth, with dividends deemed to be reinvested gross on the ex-dividend date, and the TSR is shown as the one month average
on each day.

TSR Performance from 1 January 2003

1,000

900

800

700

600

500

400

300

200

100

0
2003

Big Yellow Group

FTSE All Share Real Estate Index

FTSE All Share Index

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: Thomson Reuters Datastream

AUDITED INFORMATION

Aggregate Directors’ remuneration
The total amounts for Directors’ remuneration were as follows:

Emoluments
Gains on exercise of share options
Money purchase pension contributions

2013
£

2012
£

1,183,569
2,700,000
88,980

1,154,944
464,049
86,050

3,972,549

1,705,043

The gains on the share options above in 2013 relate to the Long Term Bonus Performance Plan granted to the Executive Directors in 2009 which vested
during the year. The gain arising from the three year plan for Nicholas Vetch and James Gibson was £900,000 each, and £450,000 each for Adrian Lee and
John Trotman.

Directors’ remuneration

Executive
Nicholas Vetch
James Gibson
Adrian Lee
John Trotman
Non-Executive
Tim Clark
Richard Cotton1
Philip Burks
Mark Richardson
Jonathan Short2
Steve Johnson

Salary
/fees
£

249,200
273,300
202,300
165,000

39,800
28,750
34,500
34,500
9,554
34,500

Annual
Bonus
£

24,920
27,330
20,230
16,500

–
–
–
–
–
–

2013

Taxable
benefits
£

6,296
7,931
5,463
3,495

–
–
–
–
–
–

Sub total
£

Pension
£

280,416
308,561
227,993
184,995

39,800
28,750
34,500
34,500
9,554
34,500

24,920
27,330
20,230
16,500

–
–
–
–
–
–

2013

Total
£

305,336
335,891
248,223
201,495

39,800
28,750
34,500
34,500
9,554
34,500

2012

Total
£

303,389
332,354
245,556
185,420

39,015
–
33,815
33,815
33,815
33,815

Aggregate emoluments

1,071,404

88,980

23,185

1,183,569

88,980

1,272,549

1,240,994

From 1 June 2012

1
2 Up to date of retirement from the Board on 10 July 2012

The interests of the current Directors in the ordinary share capital of the Company are shown below:

Nicholas Vetch (including trusts)
Philip Burks (including trusts)
James Gibson (including trusts)
Adrian Lee (including trusts)
John Trotman
Richard Cotton
Mark Richardson
Tim Clark
Steve Johnson

At 31 March
2013
No.

9,173,157
3,846,995
2,529,226
776,323
67,020
58,919
24,668
15,000
10,000

At 31 March
2012
No.

8,817,920
6,120,849
2,469,719
905,092
17,461
–
19,263
15,000
10,000

None of the Directors had any direct interests in the share capital of any of the subsidiary undertakings of the Company in the year. The interests shown
above exclude those shares over which the Directors have a partial interest in as part of the Group’s Long Term Bonus Performance Plan as follows:

Nicholas Vetch
James Gibson
Adrian Lee
John Trotman

Total

At 31 March
2013
No.

337,500
487,500
337,500
337,500

At 31 March
2012
No.

500,000
500,000
250,000
250,000

1,500,000

The individual awards shown in the table above differ from the prior year due to the grant of new options in the year following the vesting of the initial
options awarded in 2009.

Remuneration Report (continued)

Directors’ share options
Aggregate emoluments disclosed above do not include any amounts for the value of options to acquire ordinary shares in the Company granted to or held
by the Directors. During the prior year, there were gains of £0.5 million made on the exercise of share options by the Company’s Directors. There were no
share option exercises by Directors during the course of the year, other than through the vesting of the Long Term Bonus Performance Plan.

Options in respect of ordinary shares for Directors who served during the year are as follows:

No. of
shares
under
option at
Date option 31 March
2012

granted

Granted
during the
year

Exercised
during the
year

Lapsed
during the
year

No. of
shares
under
option at
31 March Exercise
price

2013

Market
price at
date of
exercise

Name

Nicholas Vetch 3 August 2009
12 July 2010
19 July 2011
11 July 2012

69,500
78,801
80,072
–

Philip Burks

6 June 2005
9 June 2006

66,667
66,667

James Gibson 3 August 2009
12 July 2010
19 July 2011
11 July 2012

Adrian Lee

John Trotman

3 August 2009
12 July 2010
19 July 2011
11 July 2012

76,200
86,419
87,807
–

42,300
63,975
57,080
–

27,800
44,427
57,080
–

–
–
–
84,218

–
–

–
–
–
92,362

–
–
–
62,065

–
–
–
–

–
–

–
–
–
–

(69,500)
–
–
–

–
78,801
80,072
84,218

–
–

66,667
66,667

(76,200)
–
–
–

(42,300)
–
–
–

(27,800)
–
–
–

–
86,419
87,807
92,362

–
63,975
57,080
62,065

–
44,427
57,080
62,065

nil p
nil p
nil p
nil p

nil p
nil p

nil p
nil p
nil p
nil p

–
–
–
–

–
–

–
–
–
–

Date from
which first
exercisable

3 August 2012
12 July 2013
19 July 2014
11 July 2015

Expiry date

3 August 2019
12 July 2020
18 July 2021
10 July 2022

6 June 2008
9 June 2009

6 June 2015
9 June 2016

3 August 2012
12 July 2013
19 July 2014
11 July 2015

3 August 2019
12 July 2020
18 July 2021
10 July 2022

3 August 2012
12 July 2013
19 July 2014
11 July 2015

3 August 2019
12 July 2020
18 July 2021
10 July 2022

3 August 2012
12 July 2013
19 July 2014
11 July 2015

3 August 2019
12 July 2020
18 July 2021
10 July 2022

The Committee has considered the performance of the 2009 LTIP options grants and determined that the criteria have not been met; therefore the award
lapsed during the year.

The market price of the Company's shares at 31 March 2013 was 355p. The highest market price during the year was 387.5p per share, the lowest market
price during the year was 274.5p, and the average price during the year was 326.1p. Pursuant to the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2001, it should be noted that past performance of the Company’s share price cannot be relied on as a guide to future performance.

Approval
This report was approved by the Board of Directors on 20 May 2013 and signed on its behalf by:

Tim Clark
Committee Chairman

Solicitors
CMS Cameron McKenna LLP
Mitre House
160 Aldersgate Street
London
EC1A 4DD

Financial advisors and stockbrokers
J P Morgan Cazenove
25 Bank Street
Canary Wharf
London
E14 5JP

Auditor
Deloitte LLP
Chartered Accountants
2 New Street Square
London
EC4A 3BZ

Officers and Professional Advisers

Directors
Philip Burks
Tim Clark
Richard Cotton
James Gibson
Steve Johnson
Adrian Lee
Mark Richardson
John Trotman
Nicholas Vetch

Secretary
Shauna Beavis

Registered office
2 The Deans
Bridge Road
Bagshot
Surrey
GU19 5AT

Bankers
Lloyds TSB Bank plc
25 Gresham Street
London
EC2V 7HN

Aviva Commercial Finance Limited
Sentinel House
37 Surrey Street
Norwich
NR1 3UY

Santander
2 Triton Square
Regent's Place
London
NW1 3AN

HSBC Bank plc
8 Canada Square
London
E14 5HQ

The Royal Bank of Scotland plc
8th Floor
280 Bishopsgate
London
EC2M 4RB

Biographies of Directors and Senior Management

Non-Executive Directors
Tim Clark, aged 62, Non-Executive Director. He was a partner in Slaughter and May, one of the leading international law firms in the world, for 25 years;
initially working as a corporate and M&A adviser to a range of companies and institutions and then for the last seven years as senior partner (before retiring
in April 2008). He is also Group Senior Adviser of G3, and a Director/trustee of the COIF charitable funds. He is also a Senior Adviser to Chatham House and a
member of the International Chamber of Commerce UK Governing Body, the Advisory Board of Uria Menendez, the Board of the Royal National Theatre and
the Development Committee of the National Gallery. He is Chairman of the trustees of the Economist Trust and a member of the Audit Committee of the
Wellcome Trust. He was appointed to the Board in August 2008.
Philip Burks, aged 54, Non-Executive Director, is a co-founder of Big Yellow in September 1998. Prior to that he was joint Chief Executive of Edge Properties
plc which he co-founded in 1989 which was subsequently listed on the Official List of the London Stock Exchange in 1996 and then taken over by
Grantchester Properties plc in 1998. Philip was the Group’s Property Director until 30 March 2007, at which date he stepped down to become a Non-
Executive Director. He was appointed a Non-Executive Director of Goals Soccer Centres plc in December 2010.
Richard Cotton, aged 57, Non-Executive Director, headed the real estate corporate finance team at JP Morgan Cazenove until April 2009. Richard is currently
a Managing Director of Forum Partners and a Non-Executive Director of Hansteen Holdings plc. Richard joined the Board in July 2012.
Mark Richardson, aged 56, Non-Executive Director, retired from Deloitte in 2008 after a career there of 29 years, the last 19 as an audit partner specialising
in clients in the Real Estate and Construction sectors. Mark is a co-opted member of the Audit and Risk Committee of the Natural History Museum, a Trustee
of the Natural History Museum Development Trust, and he is also a trustee of the children’s communication charity ICAN. He was appointed to the Board in
July 2008 and is chairman of the Audit Committee.
Steve Johnson, aged 49, Non-Executive Director, started his career at Bain in the 1980s before joining Asda in 1993, where he carried out a number of roles,
culminating in Marketing Director. He left Asda in 2000, to join GUS as a Sales & Marketing Director, departing in 2002 to take up his first CEO role at Focus
DIY, where he remained until 2007. He joined Woolworths as part of the final turnaround team in late 2008. He has most recently been working as an
operating executive for Texas Pacific Group, and was also the Executive Chairman of Dreams plc between July 2011 and October 2012. He joined the Board in
September 2010.

Executive Directors
Nicholas Vetch, aged 52, Executive Chairman, is a co-founder of Big Yellow in September 1998. Prior to that, he was joint Chief Executive of Edge Properties
plc, which he co-founded in 1989 which was subsequently listed on the Official List of the London Stock Exchange in 1996 and then taken over by
Grantchester Properties plc in 1998. He is also a Non-Executive Director of Blue Self Storage S.L, a self storage operation in Spain, and a Non-Executive
Director of Local Shopping REIT plc.
James Gibson, aged 52, Chief Executive Officer, is a co-founder of Big Yellow in September 1998. He is a Chartered Accountant having trained with Arthur
Andersen & Co. where he specialised in the property and construction sectors, before leaving in 1989. He was Finance Director of Heron Property
Corporation Limited and then Edge Properties plc which he joined in 1994. Edge Properties was listed on the Official List of the London Stock Exchange in
1996 and then taken over by Grantchester Properties plc in 1998. He is also a Non-Executive Director and shareholder of AnyJunk Limited.
Adrian Lee, aged 47, Operations Director, was previously a senior Executive at Edge Properties plc, which he joined in 1996. Prior to that he was a corporate
financier at Lazard for five years, having previously qualified as a surveyor at Knight Frank. He was appointed to the Board in May 2000.
John Trotman, aged 35, Chief Financial Officer, is a Chartered Accountant having trained with Deloitte LLP, where he specialised in the real estate sector and
self storage. On leaving Deloitte in 2005, John worked for a subsidiary of the Kajima Corporation. He joined Big Yellow in June 2007, and was appointed to the
Board in September 2007.

Senior management biographies
Shauna Beavis, aged 38, Financial Controller and Company Secretary, joined Big Yellow in March 2000, qualifying with CIMA in 2003. Prior to that she was a
Project Manager within the IT industry.
Anthony Chenery, aged 41, Head of Marketing and E-Commerce, joined Big Yellow in February 2011, having previously been employed as Head of Online
Marketing with Teletext Holidays for seven years. Prior to this, he has held marketing roles within the gaming and publishing industries and with the
marketing agency Proximity London (previously BHWG Proximity).
Paul Donnelly, aged 59, Corporate Social Responsibility Manager joined Big Yellow in August 2007 and is an Associate Member of the Institute of
Environmental Management and Assessment. Paul was previously the Sustainable Development Manager at Crest Nicholson PLC. Prior to that he was also
Environmental Manager at John Laing PLC.
Stuart Grinnall, aged 38, IT Manager, joined Big Yellow in July 2000. He is a systems engineer with several years’ experience developing IT solutions for
growth companies and NHS Hospital Trusts.
Nigel Hartley, aged 49, Construction Director, joined Big Yellow in January 2000. He is a chartered surveyor with over 20 years’ experience in the
construction industry, both overseas and in the UK, principally in the retail and industrial sectors.
Cheryl Hathaway, aged 47, Head of Human Resources, joined Big Yellow in March 2000, having previously been employed as a Human Resources Manager
within the Harrods Group. Prior to this she worked for Debenhams in a variety of human resources roles, both within head offices and in stores.
Chris Herbert, aged 58, Construction Manager, joined Big Yellow in September 1999, having previously worked for Leslie Clark, a Construction Consultancy,
for 10 years. Prior to that, he spent 10 years as a contracts/project manager with John Lelliot Building Contractors.
Nicola Jordan, aged 46, Head of Store Operations, joined Big Yellow in March 2003, having previously been employed as an Area Manager with Superdrug for
5 years. Prior to this she has held operational roles with Little Chef, Travelodge and Victoria Wine.
David Knight, aged 49, Head of Facilities, joined Big Yellow in June 2000. He was previously an Estates Manager at Whitbread which he joined in 1997. Prior
to this he was Group Facilities Manager at Central Transport Rental Group Plc (formerly Tiphook Plc) having previously qualified as a surveyor at Edwin Hill.
Andrew Watson, aged 44, Property Director, joined Big Yellow in October 2000 having previously worked as a property acquisition surveyor for McDonald’s
Restaurants. Prior to that, he was an acquisitions surveyor for Victoria Wine, having previously qualified as a chartered surveyor at Herring Baker Harris.
Tom Wilcockson, aged 56, Head of New Business Development, joined Big Yellow in July 2007. He has significant experience of developing new business
channels including international franchising, BTB and direct selling through key roles at Bhs and Early Learning Centre.

Independent Auditors’ Report to the Members of Big Yellow Group PLC

We have audited the financial statements of Big Yellow Group PLC for the year ended 31 March 2013 which comprise the Consolidated Statement of
Comprehensive Income, the Consolidated and Company Balance Sheets, the Consolidated and Company Statement of Changes in Equity, the Consolidated
and Company Cash Flow Statements, the Reconciliation of Net Cash Flow to Movement in Net Debt and the related notes 1 to 34. The financial reporting
framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European
Union and, as regards the Parent Company financial statements, as applied in accordance with the provisions of the Companies Act 2006.

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has
been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members
as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Directors and auditor
As explained more fully in the Directors’ Responsibilities Statement, the Directors are responsible for the preparation of the financial statements and for being
satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the
financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting
policies are appropriate to the Group’s and the parent Company’s circumstances and have been consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates made by the Directors; and the overall presentation of the financial statements. In addition, we read all
the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any
information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the
audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements
In our opinion:

> the financial statements give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 31 March 2013 and of the Group’s

profit for the year then ended;

> the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
> the parent Company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied in

accordance with the provisions of the Companies Act 2006; and

> the financial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the Group financial

statements, Article 4 of the IAS Regulation

Opinion on other matters prescribed by the Companies Act 2006
In our opinion:

> the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006; and
> the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the

financial statements.

Matters on which we are required to report by exception
We have nothing to report in respect of the following:

Under the Companies Act 2006 we are required to report to you if, in our opinion:

> adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not

visited by us; or

> the parent Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting

records and returns; or

> certain disclosures of Directors’ remuneration specified by law are not made; or
> we have not received all the information and explanations we require for our audit.

Under the Listing Rules we are required to review:

> the Directors’ statement contained within the business review in relation to going concern;
> the part of the Corporate Governance Statement relating to the Company’s compliance with the nine provisions of the UK Corporate Governance Code

specified for our review; and

> certain elements of the report to shareholders by the Board on Directors’ remuneration.

Darren Longley FCA (Senior Statutory Auditor)
For and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditor
Southampton, United Kingdom
20 May 2013

Consolidated Statement of Comprehensive Income
Year ended 31 March 2013

Revenue
Cost of sales

Gross profit
Administrative expenses

Operating profit before gains and losses on property assets
Gain/(loss) on the revaluation of investment properties
Gains on surplus land

Operating profit/(loss)
Share of profit/(loss) of associate
Investment income – interest receivable
Finance costs

– interest payable
– fair value movement of derivatives
– refinancing costs

Profit/(loss) before taxation
Taxation

Profit/(loss) for the year (attributable to equity shareholders)

Total comprehensive income/(loss) for the year (attributable to equity shareholders)

Basic earnings/(loss) per share

Diluted earnings/(loss) per share

EPRA earnings per share are shown in Note 12.

All items in the consolidated statement of comprehensive income relate to continuing operations.

Note

13a,14
15

13d
7
8
8, 18
8

2013
£000

69,671
(24,493)

45,178
(7,724)

37,454
9,535
1,039

48,028
618
33
(12,280)
(223)
(4,300)

31,876
–

2012
£000

65,663
(23,436)

42,227
(7,148)

35,079
(51,381)
497

(15,805)
(602)
20
(11,199)
(7,965)
–

(35,551)
–

31,876

(35,551)

31,876

(35,551)

24.4p

(27.7)p

24.1p

(27.4)p

Consolidated Balance Sheet
31 March 2013

Non-current assets
Investment property
Investment property under construction
Interests in leasehold property
Plant, equipment and owner-occupied property
Goodwill
Investment in associate
Capital Goods Scheme receivable

Current assets
Surplus land
Inventories
Trade and other receivables
Cash and cash equivalents

Total assets

Current liabilities
Trade and other payables
Borrowings
Obligations under finance leases

Non-current liabilities
Derivative financial instruments
Borrowings
Obligations under finance leases
Other payables

Total liabilities

Net assets

Equity
Called up share capital
Share premium account
Reserves

Equity shareholders’ funds

Note

13a
13a
13a
13b
13c
13d
16

17
19
21

18c
19
21
17

2013
£000

2012
£000

745,605
17,277
21,803
2,750
1,433
17,681
7,501

726,390
33,905
22,394
2,637
1,433
15,496
–

814,050

802,255

4,593
300
14,450
7,850

27,193

18,035
299
10,943
10,060

39,337

841,243

841,592

(24,421)
(1,937)
(1,952)

(25,675)
–
(1,946)

(28,310)

(27,621)

(5,494)
(234,948)
(19,851)
(12)

(15,748)
(282,960)
(20,448)
(315)

(260,305)

(319,471)

(288,615)

(347,092)

552,628

494,500

14,264
44,278
494,086

13,139
43,432
437,929

552,628

494,500

The financial statements were approved by the Board of Directors and authorised for issue on 20 May 2013. They were signed on its behalf by:

James Gibson
Director

John Trotman
Director

Company Registration No. 03625199

Consolidated Statement of Changes in Equity
Year ended 31 March 2013

At 1 April 2012
Total comprehensive gain for the year
Issue of share capital
Dividend
Credit to equity for equity-settled

share based payments

Share
capital
£000

13,139
–
1,125
–

Share
premium
account
£000

43,432
–
846
–

Capital
redemption
reserve
£000

1,653
–
–
–

Retained
earnings
£000

441,899
31,876
–
(13,543)

Other
distributable
reserves
£000

-
–
34,793
–

Own
shares
£000

(5,623)
–
–
–

Total
£000

494,500
31,876
36,764
(13,543)

–

3,031

–

3,031

At 31 March 2013

14,264

44,278

1,653

463,263

34,793

(5,623)

552,628

The other distributable reserve arose from merger relief under S612 of Companies Act 2006, following the Group’s placing of 10 million shares in the year.

Year ended 31 March 2012

At 1 April 2011
Total comprehensive loss for the year
Issue of share capital
Dividend
Purchase of own shares
Credit to equity for equity-settled

share based payments

Share
capital
£000

13,106
–
33
–
–

Share
premium
account
£000

43,404
–
28
–
–

Capital
redemption
reserve
£000

1,653
–
–
–
–

Retained
earnings
£000

488,682
(35,551)
–
(12,223)
–

–

991

At 31 March 2012

13,139

43,432

1,653

441,899

Other
distributable
reserves
£000

–
–
–
–
–

–

Own
shares
£000

(1,896)
–
–
–
(3,727)

Total
£000

544,949
(35,551)
61
(12,223)
(3,727)

–

991

(5,623)

494,500

Consolidated Cash Flow Statement
Year ended 31 March 2013

Operating profit/(loss)
(Gain)/loss on the revaluation of investment properties
Gains on surplus land
Depreciation
Depreciation of finance lease capital obligations
Employee share options
(Increase)/decrease in inventories
(Increase)/decrease in receivables
Increase/(decrease) in payables

Cash generated from operations
Interest paid
Interest received

Cash flows from operating activities

Investing activities
Sale of surplus land
Purchase of non-current assets
Additions to surplus land
Investment in associate

Cash flows from investing activities

Financing activities
Issue of share capital
Purchase of own shares
Payment of finance lease liabilities
Equity dividends paid
Refinancing fees
Payments to cancel interest rate derivatives
(Reduction)/increase in borrowings

Cash flows from financing activities

Net (decrease)/increase in cash and cash equivalents
Opening cash and cash equivalents

Closing cash and cash equivalents

Reconciliation of Net Cash Flow to Movement in Net Debt
Year ended 31 March 2013

Net (decrease)/increase in cash and cash equivalents in the year
Cash outflow/(inflow) from decrease/(increase) in debt financing

Change in net debt resulting from cash flows

Movement in net debt in the year
Net debt at the start of the year

Net debt at the end of the year

Note

13a, 14
15
13b
13a
6

13d

13a
11

2013
£000

48,028
(9,535)
(1,039)
583
933
1,376
(1)
(1,016)
2,696

42,025
(11,873)
34

2012
£000

(15,805)
51,381
(497)
550
853
1,532
20
887
(44)

38,877
(11,508)
19

30,186

27,388

15,864
(5,745)
(1,969)
(1,567)

5,404
(18,130)
(4,647)
(1,167)

6,583

(18,540)

36,764
–
(933)
(13,543)
(5,096)
(10,477)
(45,694)

61
(3,727)
(853)
(12,223)
–
–
9,000

(38,979)

(7,742)

(2,210)
10,060

1,106
8,954

7,850

10,060

Note

2013
£000

(2,210)
45,694

43,484

2012
£000

1,106
(9,000)

(7,894)

43,484
(273,940)

(7,894)
(266,046)

(230,456)

(273,940)

Notes to the Financial Statements
Year ended 31 March 2013

1. GENERAL INFORMATION

Big Yellow Group PLC is a Company incorporated in the United Kingdom under the Companies Act 2006. The address of the registered office is 2 The Deans,
Bridge Road, Bagshot, Surrey, GU19 5AT. The nature of the Group’s operations and its principal activities are set out in note 4 and in the Business Review
on pages 18 to 23.

These financial statements are presented in pounds sterling because that is the currency of the economic environment in which the Group operates.

2. SIGNIFICANT ACCOUNTING POLICIES

Adoption of new and revised standards
In the current year, there were no new or revised Standards or Interpretations that have been adopted that have affected the amounts reported in these
financial statements.

Standards not affecting the reported results nor the financial position
The following new and revised Standards and Interpretations have been adopted in the current year:

> Amendments to IAS 1
Presentation of financial statements (amended June 2011)
> Amendments to IAS 12
Income taxes
> Amendments to IAS 19 Employee Benefits (revised June 2011)
> Amendments to IFRS 7 Financial instruments: Disclosures

Their adoption has not had any significant impact on the amounts reported in these financial statements but may impact the accounting for future
transactions and arrangements.

At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these financial
statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):

> IFRS 1 (amended) Severe hyperinflation and removal of fixed dates for first time adopters
> IFRS 7 (amended) Disclosures – Transfers of financial assets
> IFRS 9 Financial Instruments
> IFRS 10 Consolidated financial statements
> IFRS 11 Joint arrangements
> IFRS 12 Disclosure of interests in other entities
> IFRS 13 Fair value measurement
> IAS 1 (amended) Presentation of items of other comprehensive income
> IAS 12 (amended) Deferred tax: Recovery of underlying assets
> IAS 19 (revised) Employee benefits
> IAS 27 (revised) Separate financial statements
> IAS 28 (revised) Investments in associates and joint ventures
> IAS 32 (amended) Offsetting Financial Assets and Financial Liabilities

With the exception of IFRS 9, IFRS 10, IFRS 11, IFRS 12, IFRS 13, IAS 27 and IAS 28, which the Group is currently evaluating, we do not expect there to be a
material impact from the adoption of these standards. Beyond the information above, it is not practicable to provide a reasonable estimate of the effect
of these standards until a detailed review has been completed.

Basis of accounting
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs). The financial statements have
also been prepared in accordance with IFRSs adopted by the European Union and therefore the Group financial statements comply with Article 4 of the
EU IAS Regulation.

The financial statements have been prepared on the historical cost basis, except for the revaluation of certain properties and financial instruments.
Historical cost is generally based on the fair value of the consideration given in exchange for the assets. The principal accounting policies adopted,
which have been applied consistently to the results, other gains and losses, assets, liabilities and cash flows of entities included in the consolidated
financial statements in the current and preceding year, are set out below:

Going concern
A review of the Group’s business activities, together with the factors likely to affect its future development, performance and position are set out on pages
18 to 29 of the Business and Financial Reviews. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are shown in the
balance sheet, cash flow statement and accompanying notes to the financial statements. Further information concerning the Group’s objectives, policies
and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its
exposures to credit risk and liquidity risk can be found in the Business and Financial Reviews, and in the Report on Corporate Governance.

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Going concern (continued)
After reviewing Group and Company cash balances, borrowing facilities and projected cash flows, the Directors believe that the Group and Company
have adequate resources to continue operations for the foreseeable future. In reaching this conclusion the Directors have had regard to the Group’s
operating plan and budget for the year ended 31 March 2014 and projections contained in the longer term business plan which covers the period to
March 2018. The Directors have considered carefully the Group’s trading performance and cash flows as a result of the uncertain global economic
environment and the other principal risks to the Group’s performance. For this reason, they continue to adopt the going concern basis in preparing
the financial statements.

Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company made up to
31 March each year. Control is achieved where the Company has the power to govern the financial and operating policies of an investee entity so
as to obtain benefits from its activities.

The Group accounts consolidate the accounts of Big Yellow Group PLC and all of its subsidiaries at the year end using acquisition accounting principles.
All intra-Group transactions, balances, income and expenses are eliminated on consolidation. Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used into line with those used by the Group. The results of subsidiaries acquired or disposed
of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition or up to the effective date
of disposal, as appropriate.

The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the aggregate of the fair values,
at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the
acquiree. Any costs directly attributable to the business combination are recognised in the income statement. The acquiree’s identifiable assets,
liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition date, except
for non-current assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-Current Assets Held for Sale and
Discontinued Operations, which are recognised and measured at the lower of their carrying amount and fair value less costs to sell.

Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the business combination over
the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. If, after reassessment, the Group’s
interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination,
the excess is recognised immediately in profit or loss.

Investment in subsidiaries
These are recognised at cost less provision for any impairment.

Investment in associates
An associate is an entity over which the Group is in a position to exercise significant influence, but not control or joint control, through participation
in the financial and operating policy decisions of the investee. Significant influence is the power to participate in the financial and operating policy
decisions of the investee but is not control or joint control over those policies.

The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting except when
classified as held for sale. Investments in associates are carried in the balance sheet at cost as adjusted by post-acquisition changes in the Group’s
share of the net assets of the associate, less any impairment in the value of individual investments. Losses of an associate in excess of the Group’s
interest in that associate (which includes any long-term interests that, in substance, form part of the Group’s net investment in the associate) are
recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

Where a Group company transacts with an associate of the Group, profits and losses are eliminated to the extent of the Group’s interest in the relevant
associate. Losses may provide evidence of an impairment of the asset transferred in which case appropriate provision is made for impairment.

Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the Group’s interest in the fair value of the identifiable assets and
liabilities of a subsidiary at the date of acquisition.

Goodwill is recognised as an asset and reviewed for impairment at least annually. Any impairment is recognised immediately in the statement of
comprehensive income and is not subsequently reversed. The goodwill in the balance sheet has an indefinite useful economic life.

Revenue recognition
Revenue represents amounts derived from the provision of services which fall within the Group’s ordinary activities after deduction of trade discounts
and any applicable value added tax. Income is recognised over the period for which the storage room is occupied by the customer on a straight line
basis. The Group recognises non-storage income on a straight line basis over the period in which it is earned.

Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.

Management fees earned are recognised on a straight line basis over the period for which the services are provided.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Operating leases
Rentals payable under operating leases are charged to the statement of comprehensive income on a straight-line basis over the term of the relevant
lease. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit
of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of
the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.

Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Premiums payable on settlement or
redemption and direct issue costs are accounted for on an accruals basis in the statement of comprehensive income using the effective interest rate
method and are added to the carrying value amount of the instrument to the extent that they are not settled in the period in which they arise.

Finance costs
All borrowing costs are recognised in the statement of comprehensive income in the period in which they are incurred, unless the costs are incurred as
part of the development of a qualifying asset, when they will be capitalised. Commencement of capitalisation is the date when the Group incurs
expenditure for the qualifying asset, incurs borrowing costs and undertakes activities that are necessary to prepare the assets for their intended use
when it is probable that they will result in future economic benefits to the entity and the costs can be measured reliably. In the case of suspension of
activities during extended periods, the Group suspends capitalisation. The Group ceases capitalisation of borrowing costs when substantially all of the
activities necessary to prepare the asset for use are complete.

Operating profit
Operating profit is stated after gains and losses on surplus land, movements on the revaluation of investment properties and before the share of results
of associates, investment income and finance costs.

Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from the net profit as reported in the statement of comprehensive
income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or
deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not
recognised if the temporary differences arise from goodwill or from the initial recognition (other than in a business combination) of other assets and
liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates except where the Group
is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates substantively enacted at the balance sheet date that are expected to apply in the period when the liability is
settled or the asset is realised. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged
or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when
they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Plant, equipment and owner occupied property
All property, plant and equipment, not classified as investment property, are carried at historic cost less depreciation and any recognised impairment loss.

Depreciation is charged so as to write off the cost or valuation of assets, other than land and investment properties, over their estimated useful lives,
using the straight-line method, on the following bases:

Freehold property
Freehold improvements
Leasehold improvements
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles

50 years
20 years
Over period of the lease
10 years
5 years
3 years
4 years

The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount
of the asset and is recognised in income.

Investment property
The criterion used to distinguish investment property from owner-occupied property is to consider whether the property is held for rental income and
for capital appreciation. Where this is the case, the Group recognises these owned or leased properties as investment properties. Investment property
is initially recognised at cost and revalued at the balance sheet date to fair value as determined by professionally qualified external valuers. In
accordance with IAS 40, investment property held as a leasehold is stated gross of the recognised finance lease liability.

Gains or losses arising from the changes in fair value of investment property are included in the statement of comprehensive income of the period in
which they arise. In accordance with IAS 40, as the Group uses the fair value model, no depreciation is provided in respect of investment properties
including integral plant.

Leasehold properties that are leased under operating leases are classified as investment properties and included in the balance sheet at fair value. The
obligation to the lessor for the buildings element of the leasehold is included in the balance sheet at the present value of the minimum lease payments
at inception, and is shown within note 21. Lease payments are apportioned between finance charges and a reduction of the outstanding lease
obligation so as to achieve a constant rate of interest on the remaining balance of the liability.

Investment property under construction
Investment property under construction is initially recognised at cost and revalued at the balance sheet date to fair value as determined by
professionally qualified external valuers.

Gains or losses arising from the changes in fair value of investment property under construction are included in the statement of comprehensive
income in the period in which they arise.

Surplus land
Surplus land, which can include assets held for development and future sale, is recognised at the lower of cost and net realisable value. Any gains and
losses on surplus land are recognised through the statement of comprehensive income.

Impairment of assets
At each balance sheet date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). The recoverable amount is the higher of an asset’s net selling price and its value-in-use (ie the net present value of its future
cash flows discounted at the Group’s average pre-tax interest rate that reflects the borrowing costs and risk for the asset).

Inventories
Inventories, representing the cost of packing materials, are stated at the lower of cost and net realisable value.

Financial instruments
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the contractual provisions of
the instrument. Financial assets at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The
net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘other gains and
losses’ line item in the income statement.

A – Derivative financial instruments and hedge accounting
The Group’s activities expose it primarily to the financial risks of interest rates. The Group uses interest rate swap contracts to hedge these exposures. The
Group does not use derivative financial instruments for speculative purposes. The use of financial derivatives is governed by the Group’s policies approved
by the Board of Directors. The policy in respect of interest rates is to maintain a balance between flexibility and the hedging of interest rate risk.

Derivatives are initially recognised at fair value and are subsequently reviewed at each balance sheet date. The fair value of interest rate derivatives at the
reporting date is determined by discounting the future cash flows using the forward curves at the reporting date and the credit risk inherent in the contract.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

A - Derivative financial instruments and hedge accounting (continued)
Changes in the fair value of derivative financial instruments are recognised in the statement of comprehensive income as they arise. The Group has not
adopted hedge accounting. Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their
risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at fair value with unrealised gains or
losses reported in the statement of comprehensive income.

B - Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans
and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is
recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

C - Impairment of financial assets
Financial assets are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence
that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment
have been impacted.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables,
where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off
against the allowance account.

Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance
account are recognised in profit or loss.

D - Cash and cash equivalents
Cash and cash equivalents comprises cash on hand and demand deposits, and other short term highly liquid investments that are readily convertible to a
known amount of cash and are subject to an insignificant risk of changes in value. The carrying amounts of these assets approximates to the fair value.

E - Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

F - Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.

G - Trade payables
Trade payables are not interest bearing and are stated at their nominal value.

Retirement benefit costs
Pension costs represent contributions payable to defined contribution schemes and are charged as an expense to the statement of comprehensive
income as they fall due. The assets of the schemes are held separately from those of the Group.

Share-based payments
The Group issues equity-settled share-based payments to certain employees. These are measured at fair value at the date of grant. The fair value
determined at the grant date of the share-based payment is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of
shares that will eventually vest.

Fair value is measured by use of the Black-Scholes model and excludes the effect of non market based vesting conditions. The expected life used in the
model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioural
considerations. At each balance sheet date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect
of non market based vesting conditions. The impact of the revision of the original estimates, if any, is recovered in profit and loss such that the
cumulative expenses reflects the revised estimate with a corresponding adjustment to equity reserves.

For cash-settled share-based payments, a liability is recognised for the goods or services acquired, measured initially at the fair value of the liability.
At each balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair
value recognised in profit or loss for the year.

Critical accounting estimates and judgements
In the application of the Group’s accounting policies, which are described above, the Directors are required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and
future periods.

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

a) Estimate of fair value of Investment Properties and Investment Property Under Construction

The Group’s self storage centres and stores under development are valued using a discounted cash flow methodology which is based on
projections of net operating income. The Group employs expert external valuers, Cushman & Wakefield LLP, who report on the values of the Group’s
stores on a biannual basis. Principal assumptions underlying management’s estimation of the fair value are those related to: stabilised occupancy
levels; the absorption period to these stabilised levels; expected future growth in storage rents and operating costs; maintenance requirements;
capitalisation rates and discount rates. A more detailed explanation of the background and methodology adopted in the valuation of the Group’s
investment properties is set out in note 14 to the accounts.

b) Capital Goods Scheme receivable

The Group has recognised a receivable in the year in respect of amounts due back from HMRC under the Capital Goods Scheme following the
imposition of VAT on self storage from 1 October 2012. The amount recognised is subject to agreement with HMRC, is payable over up to ten years
and has been discounted at the Group’s average cost of debt.

3. REVENUE

Analysis of the Group’s operating revenue can be found below and in the Portfolio Summary on page 30.

Open stores
Self storage income
Other storage related income
Ancillary store rental income

Stores under development
Non-storage income

Fee income
Fees earned from Big Yellow Limited Partnership
Other management fees earned

Revenue per statement of comprehensive income

Interest receivable on bank deposits (see note 7)

Total revenue per IAS 18

2013
£000

2012
£000

58,112
9,996
226

298

639
400

54,734
9,363
176

68,334

64,273

298

1,039

69,671

69,704

270

720
400

270

1,120

65,663

65,683

Non-storage income derives principally from rental income earned from tenants of properties awaiting development.

4. SEGMENTAL INFORMATION

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the
Chief Executive to allocate resources to the segments and to assess their performance. Given the nature of the Group’s business, there is one segment,
which is the provision of self storage and related services.

Revenue represents amounts derived from the provision of self storage and related services which fall within the Group's ordinary activities after
deduction of trade discounts and value added tax. The Group’s net assets, revenue and profit before tax are attributable to one activity, the provision
of self storage and related services. These all arise in the United Kingdom in the current year and prior year.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

5. PROFIT/(LOSS) FOR THE YEAR

a) Profit/(loss) for the year has been arrived at after charging/(crediting):

Depreciation of plant, equipment and owner-occupied property
Leasehold property depreciation
(Increase)/decrease in fair value of investment property
Gains on surplus land
Cost of inventories recognised as an expense
Employee costs (see note 6)
Operating lease rentals
Auditor’s remuneration for audit services (see below)

b) Analysis of auditor’s remuneration:

Fees payable to the Company’s auditor for the audit of the Company’s annual accounts
Other services – audit of the Company’s subsidiaries’ annual accounts

Total audit fees

Tax services – compliance
Tax services – advisory
Other services
Real estate advice (planning)

Total non-audit fees

2013
£000

583
933
(9,535)
(1,039)
908
10,947
154
167

2013
£000

160
7

167

32
60
34
11

137

2012
£000

550
853
51,381
(497)
914
10,255
164
167

2012
£000

160
7

167

30
60
50
12

152

Fees payable to Deloitte LLP and their associates for non-audit services to the Company are not required to be disclosed because the consolidated
financial statements are required to disclose such fees on a consolidated basis.

6. EMPLOYEE COSTS

The average monthly number of full-time equivalent employees (including Executive Directors) was:

Sales
Administration

At 31 March 2013 the total number of Group employees was 319 (2012: 310).

Their aggregate remuneration comprised:
Wages and salaries
Social security costs
Other pension costs
Share-based payments

2013
Number

2012
Number

243
43

286

2013
£000

7,763
1,472
336
1,376

235
44

279

2012
£000

7,605
791
327
1,532

10,947

10,255

The increase in social security costs is a result of Employers’ National Insurance payable on the vesting of the Long Term Bonus Performance Plan in
the year. Details of Directors’ Remuneration is given on pages 66 to 68.

INVESTMENT INCOME

Interest receivable on bank deposits

8. FINANCE COSTS

Interest on bank borrowings
Capitalised interest
Interest on obligations under finance leases
Other interest payable

Total interest payable

Change in fair value of interest rate derivatives
Refinancing costs

Total finance costs

2013
£000

2012
£000

11,458
(236)
1,057
1

11,097
(1,035)
1,130
7

12,280

11,199

223
4,300

7,965
–

16,803

19,164

The refinancing costs relate to the unamortised loan arrangement costs of the previous facility, and the write-off of the costs of the new bank facility in
accordance with IAS 39.

9. TAXATION

The Group converted to a REIT in January 2007. As a result the Group does not pay UK corporation tax on the profits and gains from its qualifying rental
business in the UK provided that it meets certain conditions. Non-qualifying profits and gains of the Group are subject to corporation tax as normal.
The Group monitors its compliance with the REIT conditions. There have been no breaches of the conditions to date.

UK current tax

Current tax:
– Current year

Deferred tax (see note 20):
– Current year

A reconciliation of the tax charge is shown below:

Profit/(loss) before tax

Tax charge/(credit) at 24% (2012 – 26%) thereon
Effects of:
Revaluation of investment properties
Permanent differences
Profits from the tax exempt business
Losses not utilised in the year
Utilisation of brought forward losses
Movement on other unrecognised deferred tax assets

Total tax charge

2013
£000

2012
£000

–

2013
£000

2012
£000

31,876

(35,551)

7,650

(9,243)

493
(3,155)
(5,313)
4,663
–
(4,338)

–

13,484
37
(5,759)
685
(370)
1,166

–

At 31 March 2013 the Group has unutilised tax losses of £37.5 million (2012: £13.8 million) available for offset against certain types of future taxable
profits. All losses can be carried forward indefinitely.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

10. ADJUSTED PROFIT BEFORE TAX AND ADJUSTED EBITDA

Profit/(loss) before tax
(Gain)/loss on revaluation of investment properties – wholly owned

– in associate

Change in fair value of interest rate derivatives – Group

– in associate

VAT implementation costs
Refinancing costs
Share of refinancing costs in associate
Gains on surplus land

Adjusted profit before tax

Net bank and other interest
Depreciation

Adjusted EBITDA

2013
£000

31,876
(9,535)
(821)
223
(211)
179
4,300
499
(1,039)

25,471

11,190
583

37,244

2012
£000

(35,551)
51,381
480
7,965
(135)
–
–
–
(497)

23,643

10,049
550

34,242

Adjusted profit before tax which excludes gains and losses on the revaluation of investment properties, changes in fair value of interest rate
derivatives, net gains and losses on surplus land, and non-recurring items of income and expenditure have been disclosed to give a clearer
understanding of the Group’s underlying trading performance. The adjusted profit before tax of £25,471,000 (2012: £23,643,000) equates to EPRA
earnings, as there is no tax charge in the year.

11. DIVIDENDS

Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 31 March 2012 of 5.5p (2011: 5p) per share.
Interim dividend for the year ended 31 March 2013 of 5p (2012: 4.5p) per share.

Proposed final dividend for the year ended 31 March 2013 of 6p (2012: 5.5p) per share.

2013
£000

7,057
6,486

13,543

8,384

2012
£000

6,460
5,763

12,223

7,057

Subject to approval by shareholders at the Annual General Meeting to be held on 19 July 2013, the final dividend will be paid on 24 July 2013. The ex-div
date is 12 June 2013 and the record date is 14 June 2013.

The Property Income Dividend (“PID”) payable for the year is 8 pence per share.

12. EARNINGS/(LOSS) AND NET ASSETS PER SHARE

Earnings/(loss) per ordinary share

Basic
Dilutive share options

Diluted

Adjustments:
(Gain)/loss on revaluation of investment properties
Change in fair value of interest rate derivatives
Gains on surplus land
VAT implementation costs
Refinancing costs
Share of associate’s non-recurring (gains)/losses

EPRA – diluted

EPRA – basic

Year ended 31 March 2013

Year ended 31 March 2012

Earnings
£m

31.9
–

31.9

(9.5)
0.2
(1.0)
0.2
4.3
(0.6)

25.5

Shares
million

130.9
1.3

132.2

–
–
–
–
–
–

132.2

130.9

Pence per
share

24.4
(0.3)

24.1

(7.2)
0.2
(0.8)
0.1
3.3
(0.4)

19.3

19.5

Earnings
£m

(35.6)
–

(35.6)

51.4
8.0
(0.5)
–
–
0.3

23.6

Shares
million

128.4
1.3

129.7

–
–
–
–
–
–

129.7

128.4

Pence per
share

(27.7)
0.3

(27.4)

39.6
6.1
(0.4)
–
–
0.3

18.2

18.4

The calculation of basic earnings/(loss) is based on profit/(loss) after tax for the year. The weighted average number of shares used to calculate diluted
earnings/(loss) per share has been adjusted for the conversion of share options.

12. EARNINGS/(LOSS) AND NET ASSETS PER SHARE (continued)

EPRA earnings and earnings per ordinary share before non-recurring items, movements on revaluation of investment properties, gains on surplus land,
the change in fair value of interest rate derivatives, and share of associate non-recurring gains and losses have been disclosed to give a clearer
understanding of the Group’s underlying trading performance.

The European Public Real Estate Association (“EPRA”) has issued recommended bases for the calculation of net assets per share information and this is
shown in the table below:

Basic net asset value
Exercise of share options

EPRA NNNAV
Adjustments:
Fair value of derivatives
Fair value of derivatives – share of associate

EPRA NAV

Basic net assets per share (pence)
EPRA NNNAV per share (pence)
EPRA NAV per share (pence)

EPRA NAV (as above) (£000)
Valuation methodology assumption (see note 14) (£000)
Capital goods scheme adjustment (£000) (see below)

Adjusted net asset value (£000)
Adjusted net assets per share (pence)

Shares in issue
Own shares held in treasury
Own shares held in EBT

Basic shares in issue used for calculation
Exercise of share options

Diluted shares used for calculation

31 March
2013
£000

552,628
555

31 March
2012
£000

494,500
746

553,183

495,246

5,494
232

15,748
443

558,909

511,437

395.5
390.0
394.1

558,909
35,621
–

594,530
419.2

386.1
378.9
391.3

511,437
35,514
12,056

559,007
427.7

No. of shares

142,639,647 131,393,041
(1,418,750)
(1,885,117)

(1,418,750)
(1,500,000)

139,720,897 128,089,174
2,623,172

2,110,396

141,831,293 130,712,346

Net assets per share are shareholders’ funds divided by the number of shares at the year end. The shares currently held in the Group’s Employee
Benefit Trust and in treasury are excluded from both net assets and the number of shares. Adjusted net assets per share include the effect of those
shares issuable under employee share option schemes and the effect of alternative valuation methodology assumptions (see note 14).

The adjusted net assets per share presented for the year ended 31 March 2012 has been restated to show the discounted Capital Goods Scheme
receivable and the reduction in the creditor payable as recorded at 31 March 2013, which was lower than that disclosed in the accounts for the year
ended 31 March 2012, to ensure comparability with the current period disclosure. This has reduced the adjusted net assets per share at 31 March 2012
from 429.2 pence to 427.7 pence.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

12. EARNINGS/(LOSS) AND NET ASSETS PER SHARE (continued)

Big Yellow issued 7.5% of its share capital in January 2013, raising £35.8 million (net of expenses). A proforma adjusted net assets per share has been
produced below as if the placing had taken place on 31 March 2012. Applying the effects of the placing to basic net assets per share for the year ended
31 March 2012, the basic net asset value increases to £530,293,000, and basic shares in issue increases to 138,089,174, giving a basic net asset per
share of 384.0p.

Adjustment for placing

Diluted shares at 31 March 2012
Shares issued in placing
Revised shares

Adjusted net assets at 31 March 2012
Placing proceeds (net)
Adjusted net assets at 31 March 2012 proforma post placing
Adjusted net assets per share at 31 March 2012 proforma post placing

13. NON-CURRENT ASSETS

a) Investment property, development property and interests in leasehold property

No. of shares

130,712,346
10,000,000
140,712,346

£000

559,007
35,793
594,800
422.7p

At 31 March 2011
Additions
Reclassification
Adjustment to present value
Revaluation (see note 14)
Depreciation

At 31 March 2012
Additions
Capital Goods Scheme adjustment*
Reclassification
Adjustment to present value
Revaluation (see note 14)
Depreciation

At 31 March 2013

Investment
property
under
construction
£000

Interests in
leasehold
property
£000

46,310
16,803
(27,371)
–
(1,837)
–

33,905
305
–
(16,260)
–
(673)
–

21,244
–
–
2,003
–
(853)

22,394
–
–
–
342
–
(933)

Investment
property
£000

745,840
2,723
27,371
–
(49,544)
–

726,390
3,376
(10,629)
16,260
–
10,208
–

Total
£000

813,394
19,526
–
2,003
(51,381)
(853)

782,689
3,681
(10,629)
–
342
9,535
(933)

745,605

17,277

21,803

784,685

The Capital Goods Scheme adjustment includes the discounted debtor receivable of £10,346,000, and a reduction in the creditor payable of £283,000.

The income from self storage accommodation earned by the Group from its investment property is disclosed in note 3. Direct operating
expenses, which are all applied to generating rental income, arising on the investment property in the year are disclosed in the Portfolio Summary
on page 30.

Included within additions is £0.2 million of capitalised interest (2012: £1.0 million), calculated at the Group’s average borrowing cost of 4.0%.

55 of the Group’s investment properties are pledged as security for loans, with a total value of £736,870,000.

13. NON-CURRENT ASSETS (continued)

b) Plant, equipment and owner occupied property

Freehold
property
£000

Leasehold
improvements
£000

Plant and
machinery
£000

Motor
vehicles
£000

Fixtures,
fittings & office
equipment
£000

Cost
At 31 March 2011
Additions

At 31 March 2012
Additions

At 31 March 2013

Depreciation
At 31 March 2011
Charge for the year

At 31 March 2012
Charge for the year

At 31 March 2013

Net book value
At 31 March 2013

At 31 March 2012

1,867
–

1,867

(191)
(35)

(226)
(35)

(261)

1,606

1,641

44
–

(41)
(3)

(44)
–

(44)

–

744
36

780
46

826

(515)
(48)

(563)
(46)

(609)

217

Total
£000

8,511
513

9,024
696

9,720

(5,837)
(550)

(6,387)
(583)

25
–

(3)
(6)

(9)
(6)

5,831
477

6,308
650

6,958

(5,087)
(458)

(5,545)
(496)

(15)

(6,041)

(6,970)

917

763

2,750

2,637

c) Goodwill

Goodwill relates to the purchase of Big Yellow Self Storage Company Limited in 1999. The asset is tested bi-annually for impairment. The carrying
value of £1,433,000 remains unchanged from the prior year as there is considered to be no impairment in the value of the asset.

d) Investment in associate

The Group has a 33.3% interest in Big Yellow Limited Partnership. This interest is accounted for as an associate, using equity accounting. The
Partnership commenced trading on 1 December 2007.

At the beginning of the year
Subscription for partnership capital and advances
Share of results (see below)

31 March
2013
£000

15,496
1,567
618

17,681

31 March
2012
£000

14,931
1,167
(602)

15,496

The Group has subscribed for cumulative partnership capital and advances of £16,366,000 to 31 March 2013 (2012: £14,799,000).

Notes to the Financial Statements (continued)
Year ended 31 March 2013

13. NON-CURRENT ASSETS (continued)

d) Investment in associate (continued)

The figures below show the trading results of Big Yellow Limited Partnership, and the Group’s share of the results and the net assets of
the Partnership.

Big Yellow Limited Partnership

Income statement (100%)
Revenue
Cost of sales
Administrative expenses

Operating profit
Gain/(loss) on the revaluation of investment properties
Net interest payable
Refinancing costs
Fair value movement of interest rate derivatives

Profit/(loss) before and after tax

Balance sheet (100%)
Investment property
Other non-current assets
Current assets
Current liabilities
Derivative financial instruments
Non-current liabilities

Net assets (100%)

Group share of (33.3%)

Operating profit
Gain/(loss) on the revaluation of investment properties
Net interest payable
Refinancing costs
Fair value movement of interest rate derivatives

Profit/(loss) for the year

Associate net assets

Year ended
31 March
2013
£000

Year ended
31 March
2012
£000

8,289
(4,845)
(76)

3,368
2,462
(3,111)
(1,497)
633

1,855

6,539
(4,660)
(77)

1,802
(1,441)
(2,572)
–
406

(1,805)

109,480
3,598
3,422
(2,759)
(697)
(60,000)

110,460
641
1,548
(2,463)
(1,330)
(62,367)

53,044

46,489

Year ended
31 March
2013
£000

Year ended
31 March
2012
£000

1,122
821
(1,037)
(499)
211

618

601
(480)
(858)
–
135

(602)

17,681

15,496

The Partnership has in place a fully drawn loan of £60 million, secured from Royal Bank of Scotland plc and HSBC Bank plc.

The loan has a four year term and expires in September 2016. £31.8 million of the £60 million drawn down at 31 March 2013 has been fixed to
30 June 2013 at a weighted average interest cost pre margin of 4.07%. The balance of the drawn debt is currently paying three month LIBOR plus
applicable margin. Forward start fixed rate interest derivatives of £30 million have been put in place commencing on 1 July 2013 to run through to
30 September 2016, at a weighted average cost pre margin of 1.05%. The loan amortises to £51.1 million by September 2016, with the amortisation
starting in June 2014.

The weighted average interest cost post margin at 31 March 2013 of the facility was 6.4%. On a proforma basis, the weighted average cost of the
facility in July 2013 will be 4.9% following the commencement of the new interest rate derivatives.

The Partnership loan has a loan to value covenant which requires the gross loan to the value of the Partnership’s investment property assets to be
no more than 55%. The loan is non-recourse to the Group.

The Group has an option to acquire the assets within the Partnership or the remaining interest in the Partnership not held by the Group, which is first
exercisable based on the 31 March 2013 balance sheet date, but can be deferred to March 2014 and March 2015, subject to Internal Rate of Return
(“IRR”) hurdles. The price payable is based on the market value of the Partnership’s assets and liabilities, and is subject to certain promotes, dependent
on the IRR achieved. The option has been deferred at 31 March 2013, and has been assessed to have nil value at 31 March 2013.

14. VALUATION OF INVESTMENT PROPERTY

Freehold stores*
At 31 March 2012
Transfer from investment property under construction
Capital Goods Scheme adjustment
Movement in year

At 31 March 2013

Leasehold stores
At 31 March 2012
Capital Goods Scheme adjustment
Movement in year

At 31 March 2013

Total of open stores
At 31 March 2012
Transfer from investment property under construction
Capital Goods Scheme adjustment
Movement in year

At 31 March 2013

Investment property under construction
At 31 March 2012
Transfer to investment property
Movement in year

At 31 March 2013

Valuation of all investment property
At 31 March 2012
Capital Goods Scheme adjustment**
Movement in year

At 31 March 2013

Deemed cost
£000

Revaluation on
deemed cost
£000

358,567
20,936
(10,525)
3,212

324,323
(4,676)
10,525
(1,857)

Valuation
£000

682,890
16,260
–
1,355

372,190

328,315

700,505

15,851
(104)
164

15,911

374,418
20,936
(10,629)
3,376

27,649
104
1,436

29,189

351,972
(4,676)
10,629
(421)

43,500
–
1,600

45,100

726,390
16,260
–
2,955

388,101

357,504

745,605

44,413
(20,936)
305

(10,508)
4,676
(673)

33,905
(16,260)
(368)

23,782

(6,505)

17,277

418,831
(10,629)
3,681

341,464
10,629
(1,094)

760,295
–
2,587

411,883

350,999

762,882

*
**

Includes one long leasehold property
The Capital Goods Scheme adjustment includes the discounted debtor receivable of £10,346,000 and a reduction in the creditor payable of £283,000.

The freehold and leasehold investment properties have been valued at 31 March 2013 by external valuers, Cushman & Wakefield LLP (“C&W”).
The valuation has been carried out in accordance with the RICS Valuation – Professional Standards, published by The Royal Institution of Chartered
Surveyors (“the Red Book”). The valuation of each of the investment properties and the investment properties under construction has been prepared
on the basis of either Fair Value or Fair Value as a fully equipped operational entity, having regard to trading potential, as appropriate.

The valuation has been provided for accounts purposes and as such, is a Regulated Purpose Valuation as defined in the Red Book. In compliance with
the disclosure requirements of the Red Book, C&W have confirmed that:

> The members of the RICS who have been the signatories to the valuations provided to the Group for the same purposes as this valuation have done

so since September 2004.

> C&W have been carrying out this bi-annual valuation for the same purposes as this valuation on behalf of the Group since September 2004.
> C&W do not provide other significant professional or agency services to the Group.
> In relation to the preceding financial year of C&W, the proportion of the total fees payable by the Group to the total fee income of the firm is less

than 5%.

> The fee payable to C&W is a fixed amount per store, and is not contingent on the appraised value.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

14. VALUATION OF INVESTMENT PROPERTY (continued)

Market uncertainty
C&W’s valuation report comments on valuation uncertainty resulting from low liquidity in the market for self storage property. C&W note that, although
there were a number of self storage transactions in 2007, the only significant transactions since 2007 are:

1.
2.
3.

The sale of a 51% share in Shurgard Europe which was announced in January 2008 and completed on 31 March 2008.
The sale of the former Keepsafe portfolio by Macquarie to Alligator Self Storage which was completed in January 2010; and
The purchase by Shurgard Europe of the 80% interests held by its joint venture partner (Arcapita) in its two European joint venture vehicles, First
Shurgard and Second Shurgard. The price paid was 172 million Euros and the transaction was announced in March 2011. The two joint ventures
owned 72 self storage properties.
The purchase of Selstor, Sweden, by Pelican Self Storage/M3 Capital in the fourth quarter of 2012.

There have been seven single store market transactions in the UK since 2010. C&W state that due to the lack of comparable market information in the
self storage sector, there is greater uncertainty attached to their opinion of value than would be anticipated during more active market conditions.

Valuation methodology
C&W have adopted different approaches for the valuation of the leasehold and freehold assets as follows:

Freehold and long leasehold
The valuation is based on a discounted cash flow of the net operating income over a ten year period and notional sale of the asset at the end of the
tenth year.

Assumptions
A. Net operating income is based on projected revenue received less projected operating costs together with a central administration charge of 6% of
the estimated annual revenue subject to a cap and a collar. The initial net operating income is calculated by estimating the net operating income in
the first 12 months following the valuation date.
The net operating income in future years is calculated assuming either straight-line absorption from day one actual occupancy or variable
absorption over years one to four of the cash flow period to an estimated stabilised/mature occupancy level. In the valuation the assumed
stabilised occupancy level for the 54 trading stores (both freeholds and leaseholds) open at 31 March 2013 averages 81.5% (31 March 2012:
82.4%). The projected revenues and costs have been adjusted for estimated cost inflation and revenue growth. The average time assumed for the
32 established stores to trade at their maturity levels is 32 months (31 March 2012: 32 months); for the 22 lease-up stores, the period to maturity
is 43 months (31 March 2012: 44 months).
The capitalisation rates applied to existing and future net cash flow have been estimated by reference to underlying yields for industrial and retail
warehouse property, yields for other trading property types such as student housing and hotels, bank base rates, ten year money rates, inflation
and the available evidence of transactions in the sector. The valuation included in the accounts assumes rental growth in future periods. If an
assumption of no rental growth is applied to the external valuation, the net initial yield pre-administration expenses for the 32 established stores
is 6.8% (31 March 2012: 6.8%) rising to a stabilised net yield pre-administration expenses of 8.1% (31 March 2012: 8.1%). Also on a no growth and
pre-administration expenses basis the 22 lease-up stores have a net initial yield of 4.9% (31 March 2012: 4.4%) rising to 8.4% (31 March 2012: 8.6%)
on stabilisation.
The future net cash flow projections (including revenue growth and cost inflation) have been discounted at a rate that reflects the risk associated
with each asset. The weighted average annual discount rate adopted (for both freeholds and leaseholds) is 11.2% (31 March 2012: 11.2%).

E. Purchaser’s costs of 5.8% (see below) have been assumed initially and sale plus purchaser’s costs totalling 6.8% are assumed on the notional sales

in the tenth year in relation to the freehold stores.

Short leasehold
The same methodology has been used as for freeholds, except that no sale of the assets in the tenth year is assumed but the discounted cash flow is
extended to the expiry of the lease. The average unexpired term of the Group’s seven short leasehold properties is 15.7 years (31 March 2012: 16.7 years).

Investment properties under construction
C&W have valued the stores in development adopting the same methodology as set out above but on the basis of the cash flow projection expected for
the store at opening and after allowing for the outstanding costs to take each scheme from its current state to completion and full fit-out. C&W have
allowed for holding costs and construction contingency, as appropriate. One scheme does not yet have planning consent and C&W have reflected the
planning risk in their valuation.

Immature stores: value uncertainty
C&W have assessed the value of each property individually. However, two of the stores in the portfolio are relatively immature and have low initial cash
flow. C&W have endeavoured to reflect the nature of the cash flow profile for these properties in their valuation, and the higher associated risks relating
to the as yet unproven future cash flow, by adjustment to the capitalisation rates and discount rates adopted. However, immature low cash flow stores
of this nature are rarely, if ever, traded individually in the market, unless as part of a distressed sale or similar situation. Although, there is more
evidence of immature low cash flow stores being traded as part of a group or portfolio transaction.

Please note C&W’s comments in relation to market uncertainty in the self storage sector due to the lack of comparable market transactions and
information. The degree of uncertainty relating to the two immature stores is greater than in relation to the balance of the properties due to there being
even less market evidence that might be available for more mature properties and portfolios.

14. VALUATION OF INVESTMENT PROPERTY (continued)

Assumptions (continued)
C&W state that in practice, if an actual sale of the properties were to be contemplated then any immature low cash flow stores would normally be
presented to the market for sale lotted or grouped with other more mature assets owned by the same entity, in order to alleviate the issue of negative or
low short term cash flow. This approach would enhance the marketability of the group of assets and assist in achieving the best price available in the
market by diluting the cash flow risk.

C&W have not adjusted their opinion of fair value to reflect such a grouping of the immature assets with other properties in the portfolio and all stores
have been valued individually. However, they highlight the matter to alert the Group to the manner in which the properties might be grouped or lotted in
order to maximise their attractiveness to the market place.

C&W consider this approach to be a valuation assumption but not a Special Assumption, the latter being an assumption that assumes facts that differ
from the actual facts existing at the valuation date – and which, if not adopted, could produce a material difference in value.

C&W have not assumed that the entire portfolio of properties owned by the entity would be sold as a single lot and the value for the whole portfolio in
the context of a sale as a single lot may differ significantly (either higher or lower) from the aggregate of the individual values for each property in the
portfolio, reflecting the lotting assumption described above.

Valuation assumption for purchaser’s costs
The Group’s investment property assets have been valued for the purposes of the financial statements after deducting notional purchaser’s cost of 5.8%
of gross value, as if they were sold directly as property assets. The valuation is an asset valuation which is entirely linked to the operating performance
of the business. They would have to be sold with the benefit of operational contracts, employment contracts and customer contracts, which would be
very difficult to achieve except in a corporate structure.

This approach follows the logic of the valuation methodology in that the valuation is based on a capitalisation of the net operating income after allowing a
deduction for operational cost and an allowance for central administration costs. Sale in a corporate structure would result in a reduction in the assumed
Stamp Duty Land Tax but an increase in other transaction costs reflecting additional due diligence resulting in a reduced notional purchaser’s cost of 2.75%
of gross value. All the significant sized transactions that have been concluded in the UK in recent years were completed in a corporate structure. The Group
therefore instructed C&W to carry out a Red Book valuation on the above basis, and this results in a higher property valuation at 31 March 2013 of
£796,890,000 (£34,008,000 higher than the value recorded in the financial statements). The valuations in Big Yellow Limited Partnership are £4,840,000
higher than the value recorded in the financial statements, of which the Group’s share is £1,613,000. The sum of these is £35,621,000 and translates to
25.1 pence per share. We have included this revised valuation in the adjusted diluted net asset calculation (see note 12).

15. SURPLUS LAND

At 31 March 2012
Additions
Disposals

At 31 March 2013

£000

18,035
2,277
(15,719)

4,593

In the current year, a gain of £1,039,000 was recorded following the disposal of three sites (2012: gain of £497,000 following the disposal of one site).

16. TRADE AND OTHER RECEIVABLES

Current
Trade receivables
Capital Goods Scheme receivable
Other receivables
Prepayments and accrued income

Non-current
Capital Goods Scheme receivable

31 March
2013
£000

31 March
2012
£000

2,373
2,845
887
8,345

1,559
–
1,316
8,068

14,450

10,943

7,501

–

Trade receivables are net of a bad debt provision of £45,000 (2012: £24,000). The Directors consider that the carrying amount of trade and other
receivables approximates their fair value.

The Operating and Financial Review contains commentary on the Capital Goods Scheme receivable.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

16. TRADE AND OTHER RECEIVABLES (continued)

Trade receivables
The Group does not typically offer credit terms to its customers, requiring them to pay in advance of their storage period and hence the Group is not
exposed to significant credit risk. A late charge of 10% is applied to a customer’s account if they are greater than 10 days overdue in their payment. The
Group provides for receivables on a specific basis. There is a right of lien over the customers’ goods, so if they have not paid within a certain time frame,
we have the right to sell the items they store to recoup the debt owed by the customer. Trade receivables that are overdue are provided for based on
estimated irrecoverable amounts determined by reference to past default experience.

For individual storage customers, the Group does not perform credit checks, however this is mitigated by the fact that these customers are required to
pay in advance, and also to pay a deposit ranging from between one week to four weeks’ storage income. Before accepting a new business customer
who wishes to use a number of the Group’s stores, the Group uses an external credit rating to assess the potential customer’s credit quality and defines
credit limits by customer. There are no customers who represent more than 5 per cent of the total balance of trade receivables.

Included in the Group’s trade receivable balance are debtors with a carrying amount of £384,000 (2012: £173,000) which are past due at the reporting
date for which the Group has not provided as there has not been a significant change in credit quality and the amounts are still considered recoverable.
The average age of these receivables is 34 days past due (2012: 31 days past due).

Ageing of past due but not impaired receivables

1 - 30 days
30 - 60 days
60 + days

Total

2013
£000

299
37
48

384

The increase in aged debtors from the prior year relates principally to tenants at sites awaiting development, rather than storage customers. The
majority of these amounts have been collected since the year end.

Movement in the allowance for doubtful debts

Balance at the beginning of the year
Amounts provided in year
Amounts written off as uncollectible

Balance at the end of the year

2013
£000

24
116
(95)

2012
£000

117
16
40

173

2012
£000

25
39
(40)

The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, the Directors believe that there is no further
credit provision required in excess of the allowance for doubtful debts.

Ageing of impaired trade receivables

1 - 30 days
30 - 60 days
60 + days

Total

2013
£000

–
3
42

2012
£000

2
3
19

17. TRADE AND OTHER PAYABLES

Current
Trade payables
Other payables
Accruals and deferred income
Amounts owed to associate
VAT repayable under Capital Goods Scheme

Non-current
VAT repayable under Capital Goods Scheme

31 March
2013
£000

8,454
5,445
10,500
2
20

24,421

31 March
2012
£000

9,159
2,957
12,916
2
641

25,675

315

The Group has financial risk management policies in place to ensure that all payables are paid within the credit terms. The Directors consider the
carrying amount of trade and other payables and accruals and deferred income approximates fair value.

The Directors estimate the fair value of the Group’s VAT payable under the Capital Goods Scheme as follows:

VAT payable under the Capital Goods Scheme

2013

2012

Carrying
amount
£000

Estimated
fair value
£000

Carrying
amount
£000

956

Estimated
fair value
£000

913

The fair values have been calculated by discounting expected cash flows at interest rates prevailing at the year end.

18. FINANCIAL INSTRUMENTS

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return to
stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of debt, which includes the
borrowings disclosed in note 19, cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves
and retained earnings. The Group’s debt facilities require 60% of total drawn debt to be fixed. The Group has complied with this during the year.

With the exception of derivative instruments which are classified as a financial liability at fair value through the profit and loss (“FVTPL”), financial
liabilities are categorised under amortised cost. All financial assets are categorised as receivables.

Exposure to credit, interest rate and currency risks arises in the normal course of the Group’s business. Derivative financial instruments are used to
manage exposure to fluctuations in interest rates, but are not employed for speculative purposes.

Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on
which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2
to the financial statements.

A. Balance sheet management

The Group’s Board reviews the capital structure on an ongoing basis. As part of this review, the Board considers the cost of capital and the risks
associated with each class of capital. The Group seeks to have a conservative gearing ratio (the proportion of net debt to equity). The Board considers at
each review the appropriateness of the current ratio in light of the above. The Board is currently satisfied with the Group’s gearing ratio.

The gearing ratio at the year end is as follows:

Debt
Cash and cash equivalents

Net debt
Balance sheet equity
Net debt to equity ratio

2013
£000

(238,306)
7,850

(230,456)
552,628
41.7%

2012
£000

(284,000)
10,060

(273,940)
494,500
55.4%

Debt is defined as long-term and short-term bank borrowings, as detailed in note 19. Equity includes all capital and reserves of the Group
attributable to equity holders of the Company. Net debt is defined as gross bank borrowings less cash and cash equivalents.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

18. FINANCIAL INSTRUMENTS (continued)

Significant accounting policies (continued)

B. Debt management

The Group borrows through a senior term loan, secured on 40 self storage assets and sites, and through a 15 year loan with Aviva Commercial
Finance Limited secured on a portfolio of 15 self storage assets. Borrowings are arranged to ensure an appropriate maturity profile and to maintain
short term liquidity. Funding is arranged in the Group and in Big Yellow Limited Partnership through banks and financial institutions with whom the
Group has a strong working relationship.

C. Interest rate risk management

The Group is exposed to interest rate risk as entities in the Group borrow funds at both fixed and floating interest rates. The risk is managed by the
Group by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts. Hedging
activities are evaluated regularly to align with interest rate views and defined risk appetite; ensuring optimal hedging strategies are applied, by
either positioning the balance sheet or protecting interest expense through different interest rate cycles.

At 31 March 2013 the Group had one interest rate derivative in place; £70 million fixed at 2.80% (excluding the margin on the underlying debt
instrument) until September 2016.

Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate interest amounts calculated on
agreed notional principal amounts. Such contracts enable the Group to mitigate the risk of changing interest rates on the fair value of issued fixed
rate debt held and the cash flow exposures on the issued variable rate debt held. The fair value of interest rate swaps at the reporting date is
determined by discounting the future cash flows using the curves at the reporting date and the credit risk inherent in the contract, and is disclosed
below. The average interest rate is based on the outstanding balances at the end of the financial year.

The interest rate swaps settle on a monthly basis. The floating rate on the interest rate swaps is one month LIBOR. The Group will settle the
difference between the fixed and floating interest rate on a net basis.

The Group does not hedge account for its interest rate swaps and states them at fair value, with changes in fair value included in the statement of
comprehensive income. The loss in the statement of comprehensive income for the year on the fair value of interest rate derivatives was £223,000
(2012: loss of £7,965,000).

The fair value of the above derivatives at 31 March 2013 was a liability of £5,494,000 (2012: liability of £15,748,000).

D. Interest rate sensitivity analysis

In managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings, without jeopardising its
flexibility. Over the longer term, permanent changes in interest rates may have an impact on consolidated earnings.

At 31 March 2013, it is estimated that an increase of 0.5 percentage points in interest rates would have reduced the Group’s adjusted profit before
tax by £350,000 (2012: reduced adjusted profit before tax by £470,000) and a decrease of 0.5 percentage points in interest rates would have
increased the Group’s adjusted profit before tax by £350,000 (2012: increased adjusted profit before tax by £470,000). There would have been no
effect on amounts recognised directly in equity. The sensitivity has been calculated by applying the interest rate change to the variable rate
borrowings, net of interest rate swaps, at the year end.

The Group’s sensitivity to interest rates has decreased during the year, following the repayment of floating rate debt from cash resources. The
Board monitors closely the exposure to the floating rate element of our debt.

E. Cash management and liquidity

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management
framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages
liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual
cash flows and matching the maturity profiles of financial assets and liabilities. Included in note 19 is a description of additional undrawn facilities
that the Group has at its disposal to further reduce liquidity risk.

Short term money market deposits are used to manage liquidity whilst maximising the rate of return on cash resources, giving due consideration
to risk.

F. Foreign currency management

The Group does not have any foreign currency exposure.

G. Credit risk

The credit risk management policies of the Group with respect to trade receivables are discussed in note 16. The Group has no significant
concentration of credit risk, with exposure spread over 38,000 customers in our stores.

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

18. FINANCIAL INSTRUMENTS (continued)

Significant accounting policies (continued)

H. Financial maturity analysis

In respect of interest-bearing financial liabilities, the following table provides a maturity analysis for individual elements.

2013 Maturity

Debt
Aviva mortgage
Bank loan payable at variable rate
Debt fixed by interest rate derivatives

Total

2013 Maturity

Debt
Bank loan payable at variable rate
Debt fixed by interest rate derivatives

Total

I. Fair values of financial instruments

Total
£000

Less than
one year
£000

One to
two years
£000

Two to
five years
£000

More than
five years
£000

98,306
70,000
70,000

238,306

1,937
–
–

1,937

2,034
–
–

2,034

6,735
70,000
70,000

146,735

87,600
–
–

87,600

Total
£000

Less than
one year
£000

One to
two years
£000

Two to
five years
£000

More than
five years
£000

94,000
190,000

284,000

–
–

–

94,000
190,000

284,000

–
–

–

–
–

–

The fair values of the Group’s cash and short term deposits and those of other financial assets equate to their book values. Details of the Group’s
receivables at amortised cost are set out in note 16. The amounts are presented net of provisions for doubtful receivables, and allowances for
impairment are made where appropriate. Trade and other payables, including bank borrowings, are carried at amortised cost. Finance lease
liabilities are included at the fair value of their minimum lease payments. Derivatives are carried at fair value.

For those financial instruments held at valuation, the Group has categorised them into a three level fair value hierarchy based on the priority of the
inputs to the valuation technique in accordance with IFRS 7. The hierarchy gives the highest priority to quoted prices in active markets for identical
assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different
levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the
instrument in its entirety. The fair value of the Group’s outstanding interest rate derivative, as detailed in note 18C, has been estimated by
calculating the present value of future cash flows, using appropriate market discount rates, representing Level 2 fair value measurements as
defined by IFRS 7. There are no financial instruments which have been categorised as Level 1 or Level 3.

J. Maturity analysis of financial liabilities

The contractual maturities based on market conditions and expected yield curves prevailing at the year end date are as follows:

2013

From five to twenty years
From two to five years
From one to two years

Due after more than one year
Due within one year

Total

2012

From five to twenty years
From two to five years
From one to two years

Due after more than one year
Due within one year

Total

Trade
and other
payables
£000

–
–
12

12
24,421

24,433

Trade
and other
payables
£000

–
–
315

315
25,675

25,990

Interest rate
swaps
£000

Borrowings
and interest
£000

Finance
leases
£000

23,489
5,965
1,989

31,443
1,989

Total
£000

145,866
176,742
16,122

338,730
40,523

122,377
168,561
12,472

303,410
12,472

315,882

33,432

379,253

Borrowings
and interest
£000

–
–
288,680

288,680
10,228

Finance
leases
£000

25,436
5,953
1,984

33,373
1,984

Total
£000

25,436
10,807
295,214

331,457
42,747

–
2,216
1,649

3,865
1,641

5,506

Interest rate
swaps
£000

–
4,854
4,235

9,089
4,860

13,949

298,908

35,357

374,204

Notes to the Financial Statements (continued)
Year ended 31 March 2013

18. FINANCIAL INSTRUMENTS (continued)

Significant accounting policies (continued)

K. Reconciliation of maturity analyses

The maturity analysis in note 18J shows non-discounted cash flows for all financial liabilities including interest payments. The table below
reconciles the borrowings column in note 19 with the borrowings and interest column in the maturity analysis presented in note 18J.

2013

From five to twenty years
From two to five years
From one to two years

Due after more than one year
Due within one year

Total

2012

From two to five years
From one to two years
Due after more than one year
Due within one year

Total

19. BORROWINGS

Secured borrowings at amortised cost

Current liabilities
Aviva mortgage

Non-current liabilities
Bank borrowings
Aviva mortgage
Unamortised loan arrangement costs

Total non-current borrowings

Total borrowings

Borrowings
£000

87,600
146,735
2,034

236,369
1,937

238,306

Borrowings
£000

–
282,960
282,960
–

282,960

Unamortised
borrowing
costs
£000

1,421
–
–

1,421
–

1,421

Unamortised
borrowing
costs
£000

–
1,040
1,040
–

1,040

Interest
£000

33,356
21,826
10,438

65,620
10,535

76,155

Interest
£000

–
4,680
4,680
10,228

14,908

Borrowings
and interest
£000

122,377
168,561
12,472

303,410
12,472

315,882

Borrowings
and interest
£000

–
288,680
288,680
10,228

298,908

31 March
2013
£000

31 March
2012
£000

1,937

–

140,000
96,369
(1,421)

284,000
–
(1,040)

234,948

282,960

236,885

282,960

The weighted average interest rate paid on the borrowings during the year was 4.0% (2012: 3.7%).

The Group has £15,000,000 in undrawn committed borrowing facilities at 31 March 2013, which expire between three and four years (2012:
£41,000,000 expiring between one and two years).

On 26 April 2012, the Group announced the completion of a £100 million 15 year fixed rate loan with Aviva Commercial Finance Limited. The loan is
secured over a portfolio of 15 freehold self storage centres which were valued at £242.1 million at 29 February 2012 for the purposes of the drawdown.
The annual fixed interest rate on the loan is 4.9%.

The loan amortises to £60 million over the course of the 15 years, consistent with the Group's medium term debt reduction strategy. The debt service is
payable monthly based on fixed annual amounts. The loan outstanding on the fifth anniversary will be £89.8 million; £76.7 million outstanding on the
tenth anniversary, with £60 million remaining at expiry in April 2027.

In October 2012 the Group entered into a new £190 million four year bank facility with Lloyds TSB, HSBC and Santander, expiring in September 2016. The
facility replaced the Group's existing £225 million facility, expiring in September 2013, which was provided by the same three banks and HSH Nordbank,
who have been fully repaid following completion of this refinancing.

In February 2013, the Group repaid and cancelled £35 million of the bank facility following the placing carried out in January 2013, leaving a facility
amount of £155 million. £120 million of the facility is term loan with the balance of £35 million revolving.

The facilities attract a ratcheted margin over LIBOR based on interest cover. The Group is currently paying a blended 2.4% margin, the lowest margin on
the ratchet, which is effective for income cover of greater than 3 times.

19. BANK BORROWINGS (continued)

The Group was comfortably in compliance with its banking covenants at 31 March 2013, as illustrated in the table below.

Covenant

Consolidated EBITDA
Consolidated net tangible assets (less goodwill)
Bank loan income cover
Aviva loan interest service cover ratio
Aviva loan debt service cover ratio

Covenant
level

Minimum 1.5x
Minimum £250m
Minimum 1.75x
Minimum 1.5x
Minimum 1.2x

At 31 March
2013

3.48x
£551.2m
4.55x
2.54x
1.85x

The bank and Aviva loan income cover ratios are calculated by dividing the net operating income earned from the respective charged asset pools by
the interest charged on each loan over a rolling 12 month period. The Aviva debt service covenant additionally includes the capital repayment with
the interest.

Interest rate profile of financial liabilities

At 31 March 2013
Gross financial liabilities

At 31 March 2012
Gross financial liabilities

Total
£000

Floating
rate
£000

Fixed
rate
£000

Weighted
average
interest
rate

Period for
which the
rate is
fixed

Weighted
average
period
until
maturity

238,306

70,000

168,306

4.4%

8.3 years

6.9 years

284,000

94,000

190,000

3.7%

6.0 years

3.5 years

The floating rate at 31 March 2013 was paying a margin of 2.3% above one month LIBOR, the fixed rate debt was paying a weighted average margin of
2.5%. All monetary liabilities, including short term receivables and payables are denominated in sterling. The weighted average interest rate includes
the effect of the Group’s interest rate derivatives. The Directors have concluded that the carrying value of borrowings equates to its fair value.

Narrative disclosures on the Group’s policy for financial instruments are included within the Report on Corporate Governance and in note 18.

20. DEFERRED TAX

Deferred tax assets in respect of share based payments (£0.2 million), interest rate swaps (£1.3 million), losses (£6.6 million), capital allowances in
excess of depreciation (£0.4 million) and capital losses (£2.0 million) in respect of the non-REIT taxable business have not been recognised due to
uncertainty over the projected tax liabilities arising in the short term within the non-REIT taxable business.

21. OBLIGATIONS UNDER FINANCE LEASES

Amounts payable under finance leases:
Within one year
Within two to five years inclusive
Greater than five years

Less: future finance charges

Present value of lease obligations

Minimum lease payments

Present value
minimum of lease payments

2013
£000

2012
£000

2013
£000

2012
£000

1,989
7,954
23,489

33,432

1,984
7,937
25,436

35,357

1,952
6,917
12,934

21,803

1,946
6,857
13,591

22,394

(11,629)

(12,963)

21,803

22,394

All lease obligations are denominated in sterling. Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no
arrangements have been entered into for contingent rental payments.

The carrying amount of the Group’s lease obligations approximates their fair value.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

22. SHARE CAPITAL

Ordinary shares of 10 pence each

20,000

14,264

13,139

Authorised

2013
£000

2012
£000

Called up,
allotted and fully paid

2013
£000

2012
£000

Movement in issued share capital
Number of shares at 31 March 2011
Exercise of share options – Share option schemes

Number of shares at 31 March 2012
Issue of shares to Employee Benefit Trust
Exercise of share options – Share option schemes
Placing of shares

Number of shares at 31 March 2013

The Company has one class of ordinary shares which carry no right to fixed income.

At 31 March 2013 options in issue to Directors and employees were as follows:

Option price per Date first
ordinary share

exercisable

102p
81.5p
82.5p
96p
nil p**
nil p**
nil p**
141p*
nil p**
255p*
nil p**
263p*
nil p**
240p*
nil p**
303.5p*

15 May 2005
16 December 2005
2 July 2006
11 November 2006
6 June 2008
9 June 2009
9 July 2011
1 April 2012
3 August 2012
1 April 2013
12 July 2013
28 February 2014
19 July 2013
1 April 2015
11 July 2015
1 April 2016

Date on which the
exercise period expires

14 May 2012
15 December 2012
1 July 2013
10 November 2013
5 June 2015
8 June 2016
8 July 2018
1 October 2012
2 August 2019
1 October 2013
11 July 2020
29 August 2014
19 July 2021
1 October 2015
10 July 2022
1 October 2016

Date option
Granted

15 May 2002
16 December 2002
2 July 2003
11 November 2003
6 June 2005
9 June 2006
9 July 2008
24 February 2009
3 August 2009
23 February 2010
12 July 2010
28 February 2011
19 July 2011
12 March 2012
11 July 2012
12 March 2013

*
**

SAYE (see note 23)
LTIP (see note 23)

131,060,522
332,519

131,393,041
876,671
369,935
10,000,000

142,639,647

Number of
ordinary
shares
2013

–
–
10,000
4,350
66,667
72,462
24,080
–
24,425
6,985
440,072
26,184
492,082
111,820
626,977
53,657

Number of
ordinary
shares
2012

8,000
8,150
18,613
7,650
74,765
91,665
57,620
215,650
372,967
11,263
457,212
29,060
493,582
124,702
–
–

1,959,761

1,970,899

OWN SHARES
The own shares reserve represents the cost of shares in Big Yellow Group PLC purchased in the market, and held by the Big Yellow Group PLC Employee
Benefit, along with shares issued directly to the Employee Benefit Trust. 1,500,000 shares are held in the Employee Benefit Trust (2012: 1,885,117),
and 1,418,750 shares are held in treasury (2012: 1,418,750).

23. SHARE BASED PAYMENTS

The Company has four equity share-based payment arrangements, namely approved and unapproved share option schemes, an LTIP scheme, an
Employee Share Save Scheme (“SAYE”) and a Long Term Bonus Performance Plan. The Group recognised a total expense in the year related to equity-
settled share-based payment transactions of £1,376,000 (2012: £1,532,000).

Equity-settled share option plans
The Group granted options to employees under Approved and Unapproved HMRC Share option schemes between November 1999 and November 2003.
The Group’s schemes provided for a grant price equal to the average quoted market price of the Group shares on the date of grant. The vesting period is
three to ten years. If the options remain unexercised after a period of 10 years from the date of grant, the options expire. Furthermore, options are
forfeited if the employee leaves the Group before the options vest.

Since 2004 the Group has operated an Employee Share Save Scheme (“SAYE”) which allows any employee who has more than six months service to
purchase shares at a 20% discount to the average quoted market price of the Group shares at the date of grant. The associated savings contracts are three
years at which point the employee can exercise their option to purchase the shares or take the amount saved, including interest, in cash. The scheme is
administered by Yorkshire Building Society.

23. SHARE BASED PAYMENTS (continued)

On an annual basis since 2004 the Group awarded nil-paid options to senior management under the Group’s Long Term Incentive Plan (“LTIP”). The
awards are conditional on the achievement of challenging performance targets as described on pages 61 and 62 of the Remuneration Report. The awards
granted in 2004, 2005 and 2006 vested in full. The awards granted in 2007 and 2009 lapsed, and the awards granted in 2008 partially vested.

The weighted average share price at the date of exercise for options exercised in the year was £3.19 (2012: £2.87).

Share option scheme “ESO”

Outstanding at beginning of year
Exercised during the year
Lapsed during the year

Outstanding at the end of the year

Exercisable at the end of the year

2013
Weighted
average
exercise price
(£)

0.85
0.89
–

0.87

2013
No. of
options

42,413
(28,044)
(19)

14,350

2012
Weighted
average
exercise price
(£)

0.92
0.95
–

0.85

2012
No. of
options

86,351
(43,938)
–

42,413

Options outstanding at 31 March 2013 had a weighted average contractual life of 0.3 years (2012: 1.2 years).

LTIP scheme

Outstanding at beginning of year
Granted during the year
Forfeited during the year
Exercised during the year

Outstanding at the end of the year

Exercisable at the end of the year

2013
No. of options

2012
No. of options

1,547,811
626,977
(308,350)
(119,673)

1,377,709
495,582
(48,300)
(277,180)

1,746,765

1,547,811

187,634

220,550

The weighted average fair value of options granted during the year was £650,000 (2012: £433,000).

Options outstanding at 31 March 2013 had a weighted average contractual life of 7.9 years (2012: 7.8 years).

Employee Share Save Scheme (“SAYE”)

Outstanding at beginning of year
Granted during the year
Forfeited during the year
Exercised during the year

Outstanding at the end of the year

Exercisable at the end of the year

2013
Weighted
average
exercise price
(£)

1.86
2.40
2.98
1.41

2.61

–

2013
No. of
options

380,675
53,657
(13,468)
(222,218)

198,646

–

2012
Weighted
average
exercise price
(£)

1.73
2.40
2.38
2.66

1.86

–

2012
No. of
options

302,599
124,702
(35,225)
(11,401)

380,675

–

Options outstanding at 31 March 2013 had a weighted average contractual life of 2.5 years (2012: 1.6 years).

The inputs into the Black-Scholes model are as follows:

Expected volatility
Expected life
Risk-free rate
Expected dividends

LTIP

SAYE

30%
3 years
0.8%
4.4%

37%
3 years
1.4%
4.3%

Expected volatility was determined by calculating the historical volatility of the Group’s share price over the year prior to grant.

Long term bonus performance plan
The Group has a joint share ownership plan in place. This is accounted for as an equity instrument. The plan was set up in November 2012. Directors
have a partial interest in 1,500,000 shares with the Group’s Employee Benefit Trust. The fair value of each award is £2 subject to the vesting criteria as
set out in the Directors’ Remuneration Report. At 31 March 2013 the weighted average contractual life was 2.6 years.

Notes to the Financial Statements (continued)
Year ended 31 March 2013

24. CAPITAL COMMITMENTS

There were no amounts contracted but not provided in respect of the Group’s properties as at 31 March 2013 (2012: £4.9 million).

25. EVENTS AFTER THE BALANCE SHEET DATE
There are no reportable post balance sheet events.

26. RELATED PARTY TRANSACTIONS

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in
this note.

Transactions with Big Yellow Limited Partnership
As described in note 13, the Group has a 33.3% interest in Big Yellow Limited Partnership (“the Partnership”), and entered into transactions with the
Partnership during the year on normal commercial terms.

In the current year the Group earned fees from the Partnership of £639,000 (2012: £720,000). At 31 March 2013, the Partnership owed £526,000 to
the Group (2012: Partnership owed £294,000 to the Group).

The remuneration of the Executive and Non-Executive Directors, who are the key management personnel of the Group, is set out below in aggregate.
Further information on the remuneration of individual Directors is found in the audited part of the Directors’ Remuneration Report on pages 66 to 68.

Short term employee benefits
Post-employment benefits
Share based payments

31 March
2013
£000

1,184
89
2,700

3,973

31 March
2012
£000

1,155
86
464

1,705

Dreams plc
Steve Johnson, a Non-Executive Director of the Group was the Executive Chairman of Dreams plc until 31 October 2012. During the year, the Group
continued to lease a retail unit at its Eltham store to Dreams plc on normal commercial terms.

AnyJunk Limited
James Gibson is a Non-Executive Director and shareholder in AnyJunk Limited and Adrian Lee is a shareholder in AnyJunk Limited. During the year
AnyJunk Limited provided waste disposal services to the Group on normal commercial terms, amounting to £19,000 (2012: £12,000).

No other related party transactions took place during the years ended 31 March 2013 and 31 March 2012.

100

Company Balance Sheet
Year ended 31 March 2013

Non-current assets
Plant, equipment and owner-occupied property
Investment in subsidiary companies

Current assets
Trade and other receivables
Cash and cash equivalents

Total assets

Current liabilities
Trade and other payables

Non-current liabilities
Derivative financial instruments
Other payables
Bank borrowings

Total liabilities

Net assets

Equity
Called up share capital
Share premium account
Reserves

Equity shareholders’ funds

Note

29a
29b

2013
£000

1,476
8,006

9,482

2012
£000

1,511
6,630

8,141

535,689
2,155

659,531
5,056

537,844

664,587

547,326

672,728

32
31
32

(1,463)

(1,576)

(5,494)
(6,743)
(140,000)

(15,748)
–
(282,960)

(152,237)

(298,708)

(153,700)

(300,284)

393,626

372,444

14,264
44,278
335,084

13,139
43,432
315,873

393,626

372,444

The financial statements were approved by the Board of Directors and authorised for issue on 20 May 2013. They were signed on its behalf by:

James Gibson
Director

John Trotman
Director

Company Registration No. 03625199

101

Company Cash Flow Statement
Year ended 31 March 2013

Operating loss
Depreciation
Decrease in receivables
Increase in payables

Cash generated by operations

Interest paid
Interest received

Cash flows from operating activities

Financing activities
Issue of share capital
Purchase of own shares
Equity dividends paid
(Reduction)/increase in borrowings

Cash flows from financing activities

Net decrease in cash and cash equivalents
Opening cash and cash equivalents

Closing cash and cash equivalents

2013
£000

(1,092)
35
132,920
6,848

138,711

2012
£000

(846)
35
778
889

856

(20,867)
34

(10,378)
12,527

117,878

3,005

36,764
–
(13,543)
(144,000)

(120,779)

(2,901)
5,056

2,155

61
(3,727)
(12,223)
9,000

(6,889)

(3,884)
8,940

5,056

102

Company Statement of Changes in Equity
Year ended 31 March 2013

At 1 April 2012
Total comprehensive loss for the year
Equity dividends paid
Issue of share capital
Credit to equity for equity-settled
share based payments

Share
capital
£000

13,139
–
–
1,125

Share
premium
account
£000

43,432
–
–
846

Share
redemption
reserve
£000

1,653
–
–
–

Capital
Retained
earnings
£000

319,843
(5,070)
(13,543)
–

Other
distributable
reserves
£000

–
–
–
34,793

Own
shares
£000

(5,623)
–
–
–

Total
£000

372,444
(5,070)
(13,543)
36,764

–

3,031

–

3,031

At 31 March 2013

14,264

44,278

1,653

304,261

34,793

(5,623)

393,626

The Company’s share capital is disclosed in note 22.

The other distributable reserve arose from merger relief under S612 of Companies Act 2006, following the Company’s placing of 10 million shares in the year.

The own shares balance represents amounts held in treasury and by the Employee Benefit Trust (see note 22).

Year ended 31 March 2012

At 1 April 2011
Total comprehensive loss for the year
Equity dividends paid
Issue of share capital
Purchase of own shares
Credit to equity for equity-settled
share based payments

Share
capital
£000

13,106
–
–
33
–

Share
premium
account
£000

43,404
–
–
28
–

Share
redemption
reserve
£000

1,653
–
–
–
–

Capital
Retained
earnings
£000

342,395
(11,320)
(12,223)
–
–

–

991

At 31 March 2012

13,139

43,432

1,653

319,843

Other
distributable
reserves
£000

–
–
–
–
–

–

Own
shares
£000

(1,896)
–
–
–
(3,727)

Total
£000

398,662
(11,320)
(12,223)
61
(3,727)

–

991

(5,623)

372,444

103

Notes to the Financial Statements (continued)
Year ended 31 March 2013

27. PROFIT FOR THE YEAR

As permitted by section 408 of the Companies Act 2006, the statement of comprehensive income of the Company is not presented as part of these
financial statements. The loss for the year attributable to equity shareholders dealt with in the financial statements of the Company was £5.1 million
(2012: loss of £11.3 million).

28. BASIS OF ACCOUNTING

The separate financial statements of the Company are presented as required by the Companies Act 2006. As permitted by that Act, the separate
financial statements have been prepared in accordance with International Financial Reporting Standards.

The financial statements have been prepared on the historic cost basis except that derivative financial instruments are stated at fair value.

The Company’s principal accounting policies are the same as those applied in the Group financial statements. See note 23 for details of share based
payments affecting the Company.

Going concern
See note 2 for the review of going concern for the Group and the Company.

IFRIC 11, IFRS 2 Group and Treasury Share Transactions
The Company makes equity settled share based payments to certain employees of certain subsidiary undertakings. Equity settled share based
payments that are made to the employees of the Company’s subsidiaries are treated as increases in equity over the vesting period of the award, with a
corresponding increase in the Company’s investments in subsidiaries, based on an estimate of the number of shares that will eventually vest. This is
the only addition to investment in subsidiaries in the current year. The Company does not have any employees.

29. NON-CURRENT ASSETS

a) Plant, equipment and owner occupied property

Cost

At 31 March 2012 and 31 March 2013

1,735

1,752

Freehold
property
£000

Leasehold
improvements
£000

Total
£000

(224)
(35)

(259)

1,476

1,511

(17)
–

(17)

–

(241)
(35)

(276)

1,476

1,511

Investment in
subsidiary
undertakings
£000

6,630
1,376

8,006

Accumulated depreciation
At 31 March 2012
Charge for the year

At 31 March 2013

Net book value
At 31 March 2013

At 31 March 2012

b) Investments in subsidiary companies

Cost
At 31 March 2012
Additions

At 31 March 2013

104

29. NON-CURRENT ASSETS (continued)

b) Investments in subsidiary companies (continued)

Details of the Company’s principal subsidiary companies at 31 March 2013 and 31 March 2012 are as follows:

Name of subsidiary

.Big Yellow Self Storage Company Limited
Big Yellow Self Storage Company A Limited
Big Yellow Self Storage Company 8 Limited
BYSSCo Limited
BYSSCo A Limited
BYRCo Limited
Big Yellow Construction Company Limited
.Big Yellow Self Storage (GP) Limited

Place of
incorporation
ownership
(or registration)
and operation

Proportion
of ownership
interest
%

Proportion
of voting
power held
%

Principal
activity

UK
UK
UK
UK
UK
UK
UK
UK

100
100
100
100
100
100
100
51

Self storage
100
Self storage
100
Self storage
100
Self storage
100
Self storage
100
100
Property management
100 Construction management
General Partner

Details of the Company’s principal associate at 31 March 2013 and 31 March 2012 are as follows:

Name of associate

Big Yellow Limited Partnership

30. TRADE AND OTHER RECEIVABLES

Amounts owed by Group undertakings
Prepayments and accrued income

31. TRADE AND OTHER PAYABLES

Current
Other payables
Accruals and deferred income

Non-Current
Other payables

Place of
incorporation
ownership
(or registration)
and operation

Proportion
of ownership
interest
%

Proportion
of voting
power held
%

Principal
activity

33.3

Self storage

31 March
2013
£000

535,615
74

31 March
2012
£000

659,443
88

535,689

659,531

31 March
2013
£000

31 March
2012
£000

1,041
422

1,463

942
634

1,576

6,743

–

105

Notes to the Financial Statements (continued)
Year ended 31 March 2013

32. BANK BORROWINGS AND FINANCIAL INSTRUMENTS

Interest rate derivatives
The Company has one interest rate swap in place at the year end; £70 million fixed at 2.80% (excluding the margin on the underlying debt instrument)
until September 2016.

The floating rate at 31 March 2013 was paying a margin of 2.3% above one month LIBOR, the fixed rate debt was paying a weighted average margin
of 2.5%.

The Group’s policy on risk management is set out in the Report on Corporate Governance on pages 39 to 41 and in note 18.

Bank borrowings
Unamortised loan arrangement costs

Maturity profile of financial liabilities

Between one and two years
Between two and five years

Gross financial liabilities

31 March
2013
£000

140,000
–

31 March
2012
£000

284,000
(1,040)

140,000

282,960

2013
Financial
liabilities
£000

–
140,000

2012
Financial
liabilities
£000

284,000
–

140,000

284,000

The fair value of interest rate derivatives at 31 March 2013 was a liability of £5,494,000 (2012: liability of £15,748,000). See note 18 for detail of the
interest rate profile of financial liabilities.

33. FINANCIAL INSTRUMENTS

The disclosure relating to the Company’s financial instruments are disclosed in note 18 to the Group financial statements. These disclosures are
relevant to the Company’s bank borrowings and derivative financial instruments. In addition, the Company has other payables of £1,041,000 in the
current year (2012: £942,000), which are held at amortised cost in the financial statements.

34. RELATED PARTY TRANSACTIONS

Included within these financial statements are amounts owing from Group undertakings of £535,615,000 (2012: £659,443,000), including
intercompany interest receivable of £7,824,000 (2012: £12,506,000).

106

Our Strategy

(14% annual compound growth over the last four years)

R 19 months average length of stay for existing customers
R Very low bad debt record (0.17% of revenue in year)
R Diversified tenant risk (38,500 customers)

90%

55%

14%

of revenue from London

unprompted brand

compound EPS growth

and the South East

awareness in London

over the last four years

Ten Year Summary
Year ended 31 March 2013

2013
£000

2012
£000

2011
£000

2010
£000

2009
£000

2008
£000

2007
£000

2006
£000

2005
£000

2004
£000

69,671

65,663

61,885

57,995

58,487

56,870

51,248

41,889

33,375

23,830

37,454

35,079

32,058

29,068

30,946

29,342

27,067

21,645

15,030

4,719

Results
Revenue

Operating profit before
gains and losses on
property assets

Cash flow from

operating activities

30,186

27,388

23,534

19,063

10,203

14,388

16,726

16,125

9,664

5,761

Profit/(loss) before

taxation

Adjusted profit before

31,876

(35,551)

6,901

10,209

(71,489)

102,618

152,837

118,547

42,836

1,243

taxation

25,471

23,643

20,207

16,514

13,791

15,006

14,233

12,601

7,791

n/d

Net assets

552,628

494,500

544,949

547,285

502,317

580,886

487,979

244,139

159,168

58,391

EPRA earnings
per share

Declared total

19.3p

18.2p

15.5p

13.0p

11. 9p

11.7p

10.0p

8.9p

5.5p

n/d

dividend per share

11.0p

10.0p

9.0p

4.0p

9.5p

9.0p

5.0p

2.0p

1.05p

Key statistics
Number of
stores open*

Sq ft occupied (000)*
Occupancy growth
in year 000 sq ft)*

Number of customers*
Average no. of
employees during
the year

66
2,632

65
2,458

62
2,130

60
1,915

54
1,775

48
1,850

43
1,835

37
1,672

32
1,470

29
1,268

174
38,500

328
36,300

215
32,800

140
30,500

(75)
28,500

15
30,500

163
30,100

202
27,800

202
24,600

393
20,400

286

279

273

252

239

218

191

178

160

140

* – includes stores operating in Big Yellow Limited Partnership
Results to 2004 under UK GAAP, 2005 onwards under IFRS.
n/d – measure not disclosed in that year

CPI Colour is a Carbon Neutral Printing Company.

Designed and produced by MAGEE
www.magee.co.uk

Printed by CPI Colour

You can access more information about us on our website

bigyellow.co.uk

best locations

quality facilities

outstanding people

best customer service

flexible space

24 hour security

constant innovation

Big Yellow Group PLC

2 The Deans, Bridge Road,
Bagshot, Surrey GU19 5AT

Tel: 01276 470190
Fax: 01276 470191
e-mail: info@bigyellow.co.uk

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Big Yellow Group PLC
Annual Report & Accounts 2013

www.

bigyellow.co.uk

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