Kennards Self Storage Asset Management Overview

ASSET MANAGEMENT OUTLINE KENNARDS SELF STORAGE

Pioneers of Self Storage in Australia backing over 45 years of property success. That’s our difference!

Table Of Contents

Operations and Information Tech • Supervision • Holiday Relief Team • Financial and Procedural Systems Audit • Digital Workplace • Cyber Security • WHS Design and Development • Design and Construction Service

A Little Bit About Us Growth Timeline Marketing • Brand

• Reputation • Advertising • Economies of Scale • Digital Marketing • Mobile & Tablet Responsive • Dedicated Centre Pages • Digital Agreements • Future Developments Customer Care Centre • 1300 Keep It • After Hours Support Corporate Clients • Business Class Program Retailing and Merchandising • Merchandise Sales Training, Development and Coaching

Reporting and Finance • Revenue Management Systems • Exceptions Reporting • Financial Account Management • Financial Benchmarking • Reporting Financing, Value & Exit • Improved Financing • Improved Value • Equity and Joint Venues • Exit Strategy

Investment • Management Fees • Incentive Fee

• Training and Coaching • Phantom Phone Sales • Training Programs Partnering for Performance • GoGet Vans Gateway Locations • Locations and Branding

• Establishment Fees • Operating Expenses • Development Management Fee Our Team Contact Information

A Little About Us Having pioneered self storage in Australia with the opening of the first storage spaces in 1973, Kennards has grown to become a clear industry leader. Throughout the 1980’s and 1990’s we gradually developed the self storage portfolio in Sydney, Brisbane and Newcastle. In 2004 Kennards Self Storage acquired Millers Self Storage to become Australia’s largest owner of Self Storage properties. Our organisation has invested heavily in the processes, systems and behind the scenes infrastructure to support and maximise the performance of our existing 90 locations. With approximately 68,555 storage spaces and 630,000 square meters of space available, Kennards ranks in the15 largest storage groups in the world. Kennards Storage Management has attached a strong team of capable and experienced self storage people that focus on improvement and innovation. Kennards Self Storage is widely considered the industry benchmark in Australasia. We seek to develop a culture in the organisation that attracts and retains the best people. We cultivate innovation, employee participation and engagement to the customer experience, and Brand. It is through a high engagement that our customer service levels and property presentation are at superior levels, differentiating us from competitors.

Kennards Self Storage History & Growth Timeline 46 Years of Experience

Kennards Self Storage opens its 20th property. The same year Sam Kennard becomes Managing Director

Neville Kennard discovers Self Storage in the USA

A second storage centre is opened in New South Wales

1972

1991

1973

1981

20

1995

Neville Kennard opens Australia’s first Self Storage site in Queensland

Kennards Self now manage

Sam Kennard joins Kennards Self Storage Kennards Hire and Kennards Self Storage seperate

Kennards Self Storage aquires Millers Self Storage in partnership with Valad Property Group. Kennards became the largest Self Storage operator in the country doubling their size through the aquistion

Kennards Self Storage manages 93 properties in NSW, VIC, SA, QLD & NZ. Kennards Self Storage is still Australia’s largest family owned Self Storage company.

Kennards Self Storage makes the bold decision and buys out Valad Property

2019

2004

2007

003

2008

2014

Kennards Self Storage has 80 properties and it’s market value surpasses $1 Billion

Storage 30 properties

Kennards Self Storage enters the New Zealand market acquiring 8 properties

Founded on a strong commitment to quality and customer service. Kennards reputation is held in high regard

Our Marketing Strategy Brand Kennards Self Storage is becoming a Famous Household Name. We have been in the storage business longer than any other operator in Australia. The Kennards Self Storage name has a very strong recall among consumers and in the most recent Brand Awareness Study conducted by the Self Storage Association of Australia. Kennards Self Storage rated highest amongst all our competitors. All marketing material and promotion activity is designed with our market leadership position in mind. To ensure the integrity of our Brand and reinforce the image as a market leader, all marketing material is provided to Self Storage centres. The effectiveness of the media and our market position is highly tangible and can be easily seen in each of our properties. Reputation Our company is committed to providing customers with an exceptional storage experience. Our training inductions and company philosophies focus on customer service and adding value. This has resulted in a reputation that gives us a high repeat customer and referral ratio. Advertising Kennards Self Storage has active social media campaigns to enhance consumer recall and trust. The increased trust and awareness means Kennards enjoy a higher position of consumer consideration and choice when they need storage. The ‘Keep It At Kennards’ slogan and campaign has enhanced the trust and appeal to customers. The campaigns have now seen the “Kennards” word increase in search engine keyword use by customers. Economies of Scale

Investors in our group enjoy savings from economies of scale by splitting the advertising expenses among the other Kennards Self Storage centres in the group.

Investors enjoy financial savings and benefits from our economies of scale

Digital Marketing The Kennards Self Storage website is clearly the leading website in the self storage industry. The level of penetration with search engines is high and the functionality is without comparison in Australia. This is an increasingly valuable marketing and sales tool. We rank first in Google when people search for “Storage”. Google attracts 85% of web searches in Australia. We have an active and dynamic Search Engine Optimisation (SEO) and Paid Search Engine Marketing (SEM) strategy to enhance our presence online. SEO activities are also directed to local geographic search terms, for customers looking for storage close to their home or work. Mobile and Tablet Responsive Being mobile responsive in todays market is critical. Smartphone traffic now exceeds desktop traffic. Our customers can easily search locations, obtain a quote, reserve a unit and make payment all from the convenience of their mobile devices. Dedicated Centre Details Page Your centre will have its own individual page listing with a dedicated URL on our website, with a comprehensive listing of features and benefits, maps, photos and storage prices. Customers can easily find their nearest Kennards centre and reserve or rent directly from the page. Digital Agreements Gone are the days of filling out paper Agreements. Our interactive Digital Agreements make it easy and efficient for cus - tomers to rent space as and when they need. Future Development Our web site continues to improve in utility for customers to easily transact with Kennards Self Storage. Online payments and Sign Me Up have been a wonderful addition. Recently we added a Customer Care Centre online so customers can access forms to handle their own administration anytime from anywhere.

National Call Centre Customer Care Centre 1300 KEEP IT Investors can leverage from our National Customer Care Centre (CCC) which is designed as a direct support for customers and centres. Our Customer Care Team are highly trained about Kennards Self Storage, Sales and the Self Storage industry. They hold intimate knowledge on each centre to ensure they find the perfect solution for customers. They help field any unanswered calls from the storage centres as well as attending to direct calls and online queries. The CCC are sales professionals and have provided a noticeable increase in new rentals and occupancies across every location. The software used in the CCC has comprehensive real-time visibility and functionality of every storage space, centre and customer in the company. This means we can convert enquiries to storers from missed calls and provide an enhanced experience to customers and callers. The CCC is a developing innovation that Kennards sees as a potential strategic advantage for the business. As a dedicated call centre operator, each team member is extremely efficient and skilled in phone technique and converting phone enquires to new bookings. After Hours Support 24/7 With many of our centres being available for our customers to access 24/7 it is important our customers have a voice after hours. Our after hours service operates seven days a week. After hours support, field, and manage customer questions. In situations that require immediate attention they will contact the Centre Manager or Operations Manager to resolve the call.

Corporate Clients

Business Class by Kennards Self Storage Kennards Self Storage created ‘Business Class’ to attract large corporations seeking multiple storage locations and a unique solution. The program helps businesses manage multiple storage locations through a single contract. The Kennards superior geographic footprint provides a compelling national solution for large corporate users. Business Class has been very successful in winning and retaining commercial customers. The program is co ordinated by our Business Development Manager, and is supported with propriety software for efficient Account Management. Whether our Business Class clients are looking to reduce suppliers, increase their storage across our location or simply tidy up their operation, our team can recommend, design and implement a long term sustainable solution. We provide ongoing support through regular reviews, feedback and a proactive hands on approach. Business Class clients have the flexibility to upsize or downsize space according to their business demands. Clients have exclusive access to our premium delivery service. We understand the importance of sensitive deliveries and appreciate these need to be secured into our clients units as soon as possible. Through this service our team will sign for and SMS the customer to ensure our clients goods are secured away directly into the customers units. Our Business Class clients come from a wide range of Industries:

• Pharmaceutical • Food and Beverage • Trade Services • Pharmaceutical • Food and Beverage • Trade Services

• 24 Hour Response Services • Beauty and Healthcare • Pet Care • 24 Hour Response Services • Beauty and Healthcare • Pet Care

Retailing and Marketing Merchandise Sales The Kennards Self Storage Retail Presentation has evolved through years of trial and error. As a result, sales of merchandise exceed industry peers. The Kennards Box Shop range pays particular attention to presentation and price appeal. Striking design on the Kennards Box Range further strengthens the Brand and presentation of the range. The buy-back offer further enhances the marketability of the box range. The retail range is complete with a variety of moving supplies including plastic covers, bubble wrap and packing paper The buy-back offer has broad appeal due to the wide network of storage centres where customers can redeem a refund. 100% participation in all Kennards marketing efforts is another strength of the company. The instore placement of merchandise is carefully considered to maximise sales and enhance the overall Brand presentation of our business. In store floor layouts and planograms are considered to maximise sales and professional appeal.

Training, Development and Coaching In House Training Upon joining the Kennards family, the Team Members in each storage centre are trained, trained and trained!! We believe training is crucial to profit maximisation, limiting risk involved in the self storage business. Our team regardless of their position are continuously coached, mentored and trained in self storage management. Our philosophy recognises that our people benefit from being regularly reviewed and reminded of proper procedures and Keeping up to date with new innovations. With a strong emphasis On sales we aim to see our team utilise the strongest skills and techniques to maintain high conversion rates, achieve raving fans and be provided the skills to communicate with customers in all instances. Mystery Shoppers and Measuring Sales In addition to financial performance analysis we arrange to monitor customer service and sales performance. As a result we engage ‘Mystery Shoppers’ to shop our people, score and provide feedback. Our Mystery Shopping Program has been expanded to include a customer walk in and online customer query recognising that every enquiry is vital regardless of the method of ap- proach. Even further this involves multiple touch points and means of communication in the follow up phase. This has been critical in making Kennards Self Storage one of the leading sale performers in the industry. Our Mystery Shoppers measurement is completed several times a year and includes a CARE rating on connection built with the customer. We also use phone recording technology to record calls for feedback and coaching Training Programs Include New Employee Training and Hub Training Skillbuilder, class room learning Personal and Professional Development (3 day course) Operational Excellence

Partnering for Performance

GoGet Vans now Available at Kennards Self Storage A long time initiative for Kennards Self Storage has been how we help customers through the pain of moving into storage. At Kennards Self Storage we provide a trailer complementary when moving in and we have partnered with truck rental companies, Thrifty being the most recent. A great opportunity presented itself to be part of the sharing economy that offers a cost effective benefit to our customers to help them move into storage. GoGet is Australia’s first and largest professional car sharing service operating in Sydney, Melbourne, Brisbane, Canberra and Adelaide. The company has developed a range of business and IT systems that enable the delivery of consulting, technical services and the provision of on-the-ground car share facilities. GoGet has located vans at selected Kennards Self Storage Centres for our customers to hire and use when they need help moving into storage. GoGet offer attractive rates for our customers. Kennards are now GoGets largest commercial client for vans. In 2019 we will continue to introduce more vans to more of our centres. This will include a strategic co-Branding opportunity to leverage the partnership. Go Get has already proved a simple and easy resource for customers and Team Members enhancing their moving experience

Gateway Locations and Branding Location, Location, Location

The Kennards Group boasts an enviable collection of gateway locations. Our high visibility position en- hances consumer recall for the Brand and has clear benefits to every other location, boosting enquiry levels, online search volume and occupancy rates. A great deal of care and patience is applied to secure locations in each market area. Our buildings are enhanced with our vibrant colours, large signage and blade signs,

Operations and Day to Day Management Supervision

Upon joining our team, your storage centre will have a dedicated Operations Manager, who will supervise the centres performance. We will field all of the daily questions and issues that arise, as well as provide motivation and direction for the team. All recruiting, selecting, performance appraisals and the implementation of procedures and systems will be the responsibility of our Operations Team. The primary objective across all centres is to maximise occupancy and price while minimising mistakes and poor performance. Our Operations Team are responsible for quality and all property related activities with the Centre Manager. Holiday Relief Team To ensure the momentum of the centre does not decline during Team Member vacations, we have skilled Team Support Managers who are able to step in and manage the operation during this time. The support Manager program is made possible by our market coverage, this is extremely beneficial as it minimises disruption and prevents a reduction in performance of the storage centre caused by utilising untrained Relief Team Members. Financial and Procedural System Audits The entire Kennards Self Storage business has a foundation of strong systems. Constant application of systems is important for us to be predictable and reliable in our marketing and service delivery. To maintain standards and compliance we review the centres procedures and systems during site visits. We undertake an annual audit on the many systems needed to efficiently run a storage centre. During this process we also check the financial elements of the business. This is crucial to ensure the financial integrity of our systems and processes are being utilised as intended. Digital Workplace Our strategic Goal is to ‘Create a Connected Digital Workplace’ and modernise how we work as part of our Digital Transformation initiative. In 2019 we released a major milestone through the delivery of a new intranet built on the Microsoft Cloud platform. The intranet is the central hub for all our systems and practises and serves as the front door to the broader digital environment.

Our high standards, backed by our systems and processes ensure transparency on centre performance all year round.

Design and Development Design and Construction Service

All properties developed and operating under our Brand need to be of a high standard in quality and customer convenience. We will seek to provide design input and construction standards will apply.

We can also provide a full Design and Construction Management Service:

• Managing the project on the Principles behalf • Site layout and unit mix design, preparation of preliminary sketches and consultants brief • Coordinate and appoint consultants and manage their work.

• Manage Council and statutory approval process • Obtain competitive quotes for construction and appoint builders • Project Manage builders through to delivery of a centre ready for opening

From concept to completion our team can assist in every step of the project.

Our revenue systems use data to carry out real time analysis on the state of the market demand to calculate ideal rental rates

Revenue Management Systems We have established rules and practices that grow rents from existing customers and new customers based on tenure and occupancy. The yield optimisation principles support overall revenue growth for the storage centre. Our systems are sophisticated and driven to target the best candidates of customers, or spaces to raise rents to optimise revenue for the owners of the property. Revenue Management is driven by technological systems that analyse our substantial database to consider occupancy, tenure and local competition issues on a daily basis. This provides continuous real time data to apply appropriate rent increases to select customer groups and types. Exceptions Reporting Our Information Technology system, known as ‘Warden’, constantly searches for anomalies and exceptions in the data. This reveals skill deficiencies and also fraud to enable deeper investigation or training, as necessary. Warden is a proprietary internally developed programme, tailored to our software and business requirements. Warden interrogates the data in relation to discounts, rentals, move-ins, cash sales, rent and fees waived, payment reversals and charges to lettable space. Financial Account Management Our Management Agreement provides a complete Financial Account Management service. We will approve and pay invoices within agreed limits. Financial Benchmarks One of the cost principles of profit maximisation in a storage centre is the benchmarking of its performance. The Kennards Self Storage Key Performance Indicators (KPI’s) are a vital tool in our management. They are a set of critical areas that are closely measured and managed. We also reward our people through a bonus when high level benchmarks are achieved. The KPI’s target performance in regards to storage rents, occupancy, delinquency, merchandise and insurance. Reporting The following reports will be provided: Monthly Operating Reports; comprehensively illustrating occupancy, incomes, enquiries, delinquents, merchandise sales and so on. This is also benchmarked against Company Averages.

• Quarterly Profit and Loss • Annual Profit and Loss • Annual Forecasts

Our economies of scale means we enjoy purchasing power advantages with suppliers. All investors in our group receive the full benefit of these savings. This further improves profitability and investor returns.

Financing, Value and Exit Improved Financing

The Kennards reputation is highly regarded by Australian and New Zealand Financiers. Having a storage asset managed by Kennards Self Storage has proven to assist investors in obtaining and negotiating finance for their investment. Improved Value The Kennards Brand systems and operating performance have a strong reputation with investors and valuers. This has further enhanced property value. Equity and Joint Ventures Kennards will also consider entering Joint Ventures to acquire and develop properties. This is assessed on a case-by-case basis. Exit Strategy As Kennards Self Storage is an active investor in Self Storage we have a continuous appetite to acquire more storage centres. This means you have an exit strategy that is simple and easy when the time comes.

Having your Storage Asset Managed by Kennards means improved financing and better value

Fees and Expenses

Management Fee • 7% Gross Storage Income (Storage Rent, Insurance, Merchandise Sales and other incidental income. • Minimum Monthly fee of $2,000 per month (plus GST).

• Fee Payable Monthly.

Incentive Fee As an additional performance incentive and to align our interest with the owner maximising the return, an Add Value Incentive Fee of 4% of EBITA is payable. Establishment Fee The Establishment Fee is $50,000 (plus GST) payable in three instalments 1. $20,000, payable on execution of Management Agreement 2. $20,000,on occupation of property 3. $10,000, 30 days after occupation of the property Operating Expenses The property owner will pay all of the operating costs directly incurred by the business and property. Where expenses are shared (i.e, advertising) in a market area, the cost is allocated on a pro rata basis to the centres in that market. Pro rata allocation is based on maximum lettable area. Development Management Fee Where applicable, Kennard Storage Management (KSM) is engaged to manage the entire development project. A fee of 5% (plus GST) of the construction cost is payable.

Meet Our Team Our team are our greatest asset. Each individual brings a diverse set of skills knowledge and experience. As unique as we are individually our team share a mutual passion for the business and our customers. Our team are empowered to make decisions, share and implement new ideas. We pride ourselves on our values ensuring everyone we interact with is left a ‘Store With People Who Care’ experience.

Sam Kennard - Chief Executive Officer

Darren Marshall - Chief Operating Officer

Anthony Rous - Chief Financial Controller Jeff Xanthos - Chief Information Officer

H.K Tung - Director

Tony Vuong - General Manager of Operations

David van Aanholt - Board Director

Left to Right Darryl Hodgson - NSW Operations Manager, Andrew Kirkham - NZ Operations Manager, Carolyn Coates - NSW Operations Manager, Nichola Goodwin - QLD Operations Manager, Wayne Birch- VIC Operations Manager, Satish Rao - Financial Controller, Fiona Harding - Australian and New Zealand Business Development Manager, Jelena Stricevic - NSW Operations Manager, Antone Boustani - NSW Operations Manager, Michael Macheledt - Development & Construction, Craig Henery - Construction Project Manager

Contact Information

Fiona Harding Business Development Manager

Sam Kennard Chief Executive Officer Ph: +61 2 9764 9802 Mobile 0412 973 696 Email: sam@kss.com.au

Ph: +61 2 9764 9815 Mobile 0433 215 739 Email: fiona@kss.com.au

Website: www.kss.com.au www.kennards.co.nz