eKourier Oct 2015

Kennards Kourier A Night To Remember

October 2015

I t was another fantastic night this year at our Annual Achievement Dinner. The format this year was slightly changed to accommodate the many people who were receiving their 5, 10, 15 and 20 year Service Awards. The evening began with the Gold, Silver and Bronze Centre Scoty Awards and Special Distinctions presented by Darryl. Congratulations to the Auburn Team of Matt O'Brien and Debbie Jones for most Improved Centre and also achieving a Gold Scoty result. The turn-around at this centre over recent times has been inspirational. Congratulations to all centres that achieved Gold Awards. Gold centres exhibit best practice across all the key areas and are the standard all centres can aspire to. During a speech by Sam Kennard, he recognised that KSS is in the elite standard on the world stage of Self Storage operators. In making this statement Sam was referring to everyone in the company. Whilst it is nice to be recognised with an award, everyone should be proud of what they achieved regardless of the Scoty result so well done again to everyone. Glen Bayley then presented the Adding Value Awards. The Adding Value Awards have a little extra meaning as they are

nominated by Team Members for peers who have made a

difference and had an impact on the business, on the customer and on their fellow Teams. The recipients this year were dominated by our Team Support roles. These Team Members move between centres providing relief for Annual Leave and the like. It is great to see that their tremendous efforts are being appreciated by everyone in KSS. There were some very moving speeches on the night that made me proud to be part of such a wonderful company with wonderful people Sam then recognised two important people, Steve Jansen for 15 Years Service and Phil Howe for 20 Years Service. KSS is certainly the beneficiary of the wonderful contribution these two individuals have made over such a long period of time. We then recognised the 5 Years of Service recipients and as I mentioned on the night, time flies when you look at who was on that list. It only feels like yesterday when the Team Members started with KSS. ‘

Then it was back to Sam again to present the 10 Year Service Awards to a new record number of recipients, 14 people were recognised in 2015. This marks a very big mile stone in the history of KSS, as KSS bought their biggest competitor Millers Self Storage back in November 2004. At this time we more than doubled our number of locations and people. The 10 Years of Service Team Members is a result of that bubble in expansion. We are delighted and very proud to still have these people with us to this day. There were some very moving speeches made on the night that made me proud to be a part of such a wonderful company filled with wonderful people. Tommy Dean our Comedian and Host for the night was great and added a fun element to the evening. As they say, laughter is the best medicine. Catching up with many of the Team Members over the course of the evening is a highlight of the year and it inspires me to hear all the great stories and wonderful words that remind me why we have such a great company with great people. Darren Marshall General Manager Cont Pg 6

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1 Kennards Kourier October 2015

WHO’S WHO

Team Member Profiles

In this issue A Night to Remember

1

Carolyn Coates NSW Operations Manager - THQ

Team Member Profiles

2

10 Questions with...

3

Career background: My last six years was with Roses Only and before that I worked at Bridge Climb in Senior Operational Positions. Marital Status: Married in 2014 Any children? My husband has two sons, Alex 24 who finishes university this year and Adrian 20 who lives with us and works at a gym. Hobbies/interests: Going to watch the Sydney Swans, movies and keeping active. Do you play any sport or have any special talents? I enjoy swimming Favourite book: To Kill a Mockingbird Career background: Professional Ballet Dancer for 13 years. Stay at home mum for 10 years. Then became a Sales Rep. Marital Status: Single Any children? Two children: Daughter Stephanie and son Ryan. Now 25 and 22. Stephanie is an Accountant and Ryan is in the RNZA. Hobbies/interests: I love yoga! Being out on the water in a boat on a fine day and shopping. Do you play any sport or have any special talents? I can still do the splits!! Favourite book: Deepak Chopra Favourite movie: The Diary

Wine Week 2015

4-5

2015 KSS Awards Night

6-10

Customer Feedback

11

Kennards Adding Value...

11

Great Start to 2015/2016 12 Forget Hats Off, It’s Hair Off... 12 Walkin The Mile 13 Wellington, Solid as a Rock 14 Looking For a Thingo? 14 KSS to Open in St Marys 15 Spotlight on Warriewood 16 Property Development in Overdrive! 17 Stepping Stone House Sleep Out 18 Community Spirit in Vanuatu 18 Nevs Notes 19 Kennards Community 20 Next issue Deadline: December 4, 2015 Please send contributions to the editor Editor: Sharon Dux Email: sharon@kss.com.au Distribution: January 15, 2016 Upcoming events 23/10 - Hawkes Bay Anniversary Day (Napier/ Onekawa /Hastings) (NZ) Closed 26/10 - Labour Day (NZ) Closed 3/11 - Melbourne Cup (VIC) PH Hours 19/11 - South Australia Xmas Party

Favourite movie: Avatar Favourite restaurant/food: We love going out for breakfast on the weekend Where did you grow up? I grew up at Quakers Hill when it was all farms – it was very rural then. Any pets? No but would love a dog. Favourite holiday destinations: Kiama, we go to Easts Beach every year.

Jayne Kiddell Centre Manager - Napier NZ

20/11 - Victoria Xmas Party 23-27/11 - NZ Xmas Party 27/11 - QLD Xmas Party 4/12 - Sydney/ACT Xmas Party

25/12 - Christmas Day KSS Closed 26/12 - Boxing Day KSS Closed 28/12 - Boxing Day Holiday (NSW/VIC/QLD/ ACT/SA) Ph Hours 28/12 - Boxing Day Holiday NZ Closed 1/1 - New Years Day KSS Closed 2/1 - New Years Day Public Holiday NZ Closed

Favourite restaurant/ food: Spicy food and fish. Where did you grow up? I grew up in the sixties in Birkinhead, North Shore Auckland, I had an amazing childhood. Any pets? Chickens and two cats. Favourite holiday destinations: Army Bay Beach where we spend every Summer and Paris.

2 Kennards Kourier October 2015

WHO’S WHO

10 Questions... With Darryl Lewisson - Centre Manager Fyshwick

you would like to be treated”. Treating your fellow teammates and customers in a respectful and honest way will ultimately make your own life much easier and happier. Have you always lived in Canberra? I grew up in Canberra but moved away in my early twenties. After travelling for a year or two, I started working for Hilton Hotels in Sydney, Adelaide and for Hilton International in Minneapolis, Minnesota USA for a couple of years. I returned to Australia in 2001 and worked for a hotel in Surfers Paradise. Eventually I returned to Canberra to work for another local hotel chain before starting with Kennards in 2005. What hobbies/interests do you have and like to do in your spare time? I love to catch up with family and friends when I can. I also enjoy playing golf (my aim is always to get one hole perfect and then it doesn’t matter so much about the other 17). I’m also a huge fan of the Mighty South Sydney Rabbitohs and the Carlton Footy Club (don’t mention the wooden spoon this year) it’s a real sore point. But if the footy doesn’t pan out there’s always the cricket. I think all our values in FREEDOM are important but I do very much see KSS as an ethical, honest and straightfor- ward company. I appreciate the amount of time and effort KSS has made to let everyone know of the KSS culture and what is expected. I am often reminded by our customers how easy it is to deal with KSS because it is so straight- forward. No little hidden charges, everything upfront and everything made as simple and easy as possible. Tell us about having to run a stand- alone Centre? At times it can be a very challenging role. However, I’ve always appreci- ated the show of faith I have been given from everyone in KSS, especially my Operations Manager, Darryl Hodgson. It’s always good to know that there is help and advice just a phone call away. I guess being the only property in What values do you think best describes KSS and the Team?

Canberra also means you have to often think for yourself and make decisions. I’ve also been very lucky to have such a dedicated and hardworking Team at Fyshwick which I rely on a great deal. What aspects of Customer Service do you feel are important? There’s been some monumental changes even in my 10 years with Kennards, be it new technical systems or procedures, but I like to think that good honest service will never change and that is ultimately what our customers want. People want to be looked after in a respectful and thoughtful way and that is what we are here to do. I also believe that as a person you have to want to engage with other people, to talk to them, to listen to them and then of course to help them. Otherwise, what are we doing here? And finally, to sum up Kennards in one word would be? Rewarding. To me the word rewarding can mean many things. It’s been a very rewarding time for me personally working for Kennards and it’s also been a very rewarding time for me profes- sionally. I have also been lucky enough to build many rewarding relationships during my 10 years with Kennards and I sincerely hope I can build many more.

What year did you start with KSS and at what centre? I started with Kennards in August 2005 at the Fyshwick centre. I saw an advert in the paper asking for people “interested in a career in space”. I thought that seemed like an interesting job, little did I know that it would develop into a 10 year (and counting) career. What was the first job you ever had? The usual first jobs while at school, paper and milk runs and working at KFC. But my first real job was as a Trainee Duty Manager for a new five star hotel. It was very exciting helping a business start from scratch and grow. Over your years with KSS what would you say is the most memorable experi- ence you have had? There’s honestly been too many to nail down to one, however I would say the whole experience has been something that I’ll never forget. Of course, you have your up days and down days, but it has been very gratifying to see the Fyshwick centre grow over the years and know I was a part of that. Celebrating a big milestone this year with 10 Years Service at KSS, What would be the best advice you could give a fellow teammate? It’s an oldie but a goodie. “Treat others as

3 Kennards Kourier October 2015

FEATURES

Wine We

Wine Training During the past five years we have been embarking on an enhanced and more intimate relationship with our current and future wine storage customers. With 16 locations our wine storage niche represents a potential annual income of $2.3 million. We believe training our Teams to be "Wine Storage Special- ists" is an important part of this process! For the past few years we have been focusing on putting our Wine Team through this programme. During our last two day session the Team completed a wine appreciation course with The Wine Society and then spent the second day in the classroom learning about the wine industry, sales, the correct features and benefits, competitor intelli- gence and how to manage their cellar. The results from the training were outstanding, with the conversion rate on wine enquiries increasing from 64% to 85%!

Australian Wine Companion Awards Winners of the Halliday Australian Wine Companion Awards were announced at a sparkling gala dinner held at the Melbourne Museum in July. The annual event marked the release of the 2016 Halliday Wine Companion. Kennards Wine Storage is a proud sponsor of the event that celebrates the success of many individuals, wines and wineries in the Australian market. We sponsored the Award for Best Value Winery of the Year, and the winner was West Cape Howe. (Below: Lynda Walsh with the West Cape Howe Team and right with Host for the night, Eddie mcGuire).

The Kennards Team enjoying Wine Training

4 Kennards Kourier October 2015

FEATURES

eek 2015

Sydney Wine Tasting As part of our sponsorship with Wine Companion, we are allocated one event with James Halliday each year. This year we hosted the Sydney launch of the 2016 Wine Companion book at KSS Team Headquarters. The event was attended by Kennards Wine Customers and Companion Subscribers. We sold 120 tickets for the event and had 16 wineries showing 106 amazing wines. We had the Winery of the year, Tabihlk, The Winemaker of the Year, Peter Fraser and The Best Value Winery of the Year, West Cape Howe, in addition to De Luliis, Mount Pleasant, Pepper Tree, Tempus Two, McGuigan, Mt Trio, Wynns, Wolfe Blass, Yangarra, Thomas Wines, Silkman, Moppity, Shingleback and Seppelt.

Social Media Programme This year we embarked on a Social Media Campaign during the Australian Wine Companion Awards and the Wine Tasting that followed. With the assistance of our new Social Media Team, My Social Click and Sharon Dux, we fired up our social channels to get our wine storage brand awareness going viral. We created a Facebook event, ran a Facebook advertising campaign, got involved in online community discus- sions around the events, created unique #hashtags and watched trending #hasgtags so that we could use them in live, on trend Tweets on the evening and days following. We gained a lot of additional followers on Twitter and Facebook. Here are some of the unique posts from the night;

Above: James Halliday signing the 2016 Wine Companion Book at the Sydney launch and right: the many wine enthusiasts enjoying the event. Lynda Walsh NSW Operations Manager & Wine Business Development Manager

5 Kennards Kourier October 2015

FEATURES

2015 Kennards Self

15 Years Service

20 Years Service

Steve, what’s your most favourite centre out of the many millions you have managed? I have been fortunate to love every centre I have worked at, but I would have to say Rozelle in 2002 was my absolute favourite. It was my first new centre and I was able to contribute so much in the overall setup. I met a lot of really nice customers and business owners in the area too. ‘ Janso is a legend! Where ever we put Steve, we know the centre will perform. He operates with precision and is very clear about what he is striving for. Sam Kennard Sam Kennard presents Steve Jansen Centre Manager for Pymble with his gift for 15 Years Service

Phil, what’s the weirdest thing you’ve seen stored? ‘ ‘ Phil is a real hero for KSS. I like Phil’s courage and eagerness to take up a challenge. I also appreciate his candour, honesty and humility. Sam Kennard ‘ A Customer wanted to go from a 1/4 garage to a full garage. I tried to find a unit near his current one and he said “why, I don’t store anything !” How does the Daily Lock Check at Waterloo compare to the City2Surf? We have 4 buildings with a total of 13 floors and 2,500 units. City2Surf record is 41 minutes for the 14 km. Our Lock Checks take just under 4 hrs and is 7 km. The longest time taken by one person was 7 hours, we thought we had lost him!!! Sam Kennard presents Phil Howe Centre Manager for Waterloo with his gift for 20 Years Service

Favourite thing to do when at work?

Blowing away the leaves in the carpark and cleaning. Seriously, it’s my thing. And I’m always taking lots of photos of the centre.

Funniest question a storer has ever asked you?

Your words of wisdom after 20 years?

So many… At Gladesville, a lady rushes in the door “Can you help me? I don’t need to buy any paint or anything, I just need directions to the RSL Club please.” Paint?

Choose a job you love and you will never have to work a day in your life, and my mentor HKs wise words, “The soul of a company is its people, the rest is shadow.”

6 Kennards Kourier October 2015

FEATURES

Storage Awards Night 10 Years Service We asked our Team Members celebrating their 10 Years Service, What 10 years with KSS means to them?

L to R Photo 1: Glen Bayley, Fiona Harding. Photo 2: Anastasia Christou, Melineh Avanessian. Photo 3: Bev Brooking. Photo 4: Lynda Walsh, Darryl Hodgson. Photo 5: Johny Vaman, Darryl Lewisson and Brett Cleland. Photo 6: Nigel Spragg. Below right: Fiona Harding.

“I’ve been an Operations Manager at Kennards for 10 years. I can't tell you how pleasing it's been to keep the same business card. You have permission to speak up and take the time to do things well. In many ways the 10 years has given me the opportunity to grow up. Learning that good culture and results is made up of many steps in a long and steady journey. However it was openness and honesty like this, that really opened me up to what the culture was about. Speaking from experience; you never know how much you'll change by keeping the same business card for 10 years.” Darryl Hodgson - THQ laughter which makes the days pass by quickly. And after 10 years I am still excited to come to work every morning.” Melineh Avanessian - THQ “Kennards is a great company to work for. There is a real family feel. I am working with a great bunch of people that care and support each other. There is always that we get to explore and touch upon so many different and interesting areas of the business. The ongoing change that’s brought about by everyone’s appetite for constant improvement of the business is inspiring.” Glen Bayley - THQ “Looking back its gone incredibly quickly. The diversity of the people and the work has been great. We’re truly fortunate

“10 Years with Kennards has been a game changer. Being absorbed into a company with such amazing culture has not only pushed me to be the best I can be at work, but has also offered many opportunities to improve myself person- ally. I consider myself to be a part of the KSS family, as many in the company do. Reaching the 10 year goal is almost like turning your career and company into a devoted and prosperous marriage, instead of a series of dates.” Lynda Walsh - THQ “I cannot imagine still having a job with my previous employer while going through renal failure. Glen and all of my teammates have all been ready and willing to help out when I have needed time to seek treatment. I have never had to reschedule or cancel a single appoint- ment. When my kidneys first failed and I needed three days a week in hospital to do dialysis every one of my teammates

“10 years ago I applied for an advert for a call centre position. I recall my current boss (and referee at the time) calling me concerned I may be making a hasty decisions on my next position. 10 years later and we still laugh about that call. It’s funny where life takes you, from my first day I felt like I was part of something. There’s an energy and openness and when you combine that with the feeling of being valued and supported, it makes you feel very rich. When I look at our Freedom clip, I think to myself, that’s me, that’s why I am here. 10 years and no regrets.” Fiona Harding - THQ and challenging myself has kept me interested over the years…I’m happy to be part of an awesome work culture and environment!” Anastasia Christou - THQ “I have definitely experienced all of our Momentum 12 values and many more. All of it, the good and the not so good, have helped me. I can confidently say, I am a better person for all the experiences over the last 10 years. Thank you KSS and everyone past and present who were a part of those 10 years; Let’s go with the next 10!” Nigel Spragg - Ivanhoe “The days feel long but the years are short! Working with great people, learning

stepped up and helped out. I honestly believe I have been very fortunate to be working for this company at this point in my life. I work for an employer who has shown true concern for my welfare not just by their words but

also by there actions.“ Neville Arkinstall - TSM QLD

Cont Pg 8

7 Kennards Kourier October 2015

FEATURES

2015 Kennards Self

10 Years Service

“An ever changing format of business ideas to grow and explore better ways of reaching our customers and providing the right solution for their needs. 10 years with Kennards Self Storage means to me: stability, fun, respect and most importantly growth. Growth as an individual, growth as a Team and growth as a company.” Johny Vaman - Rozelle Darryl Lewisson, Anastasia Christou, Glen Bayley, Nigel Spragg. Absent: Neville Arkinstall, Patricia Larkins and Bev Brooking L to R: Sam Kennard presenting 10 Years Service to Melineh Avanessian, Brett Cleland, Joanne Woodhouse, Lynda Walsh, Johny Vaman, Darryl Hodgson, Michael Macheledt, Fiona Harding,

“The one main thing that 10 years has meant for me with KSS is the feeling of being part of a bigger Team. The feeling of being part of an extended family and being part of a growing business that is the envy of others in the storage industry. It makes me proud to don the orange and blue daily and fly the flag in SE Melbourne.“ Brett Cleland - Springvale “In my 10 years I have seen many changes and watched how KSS has grown. They have helped me develop both professionally and personally and provided me with a safe, secure and fun work environment. I feel privileged to work with such a wonderful Team and great company.” Joanne Woodhouse - THQ “When reflecting on my 10 years at KSS I could talk about how positive my colleagues are and the pride I have working in KSS. I also reflect on how many KSS accessories I own, from bottle openers and travel games through to boxer shorts and t-shirts. One story that stands out is during a rather tense conversation a vacating Wollongong tenant said (pointing at me) “…and you…you are the gayest man in Wollon- gong…….and I know many gay men” it took all my strength to stop bursting out laughing – all that just for wearing the all-time classic KSS Hawaiian shirt.” Michael Macheledt - THQ

“The support and encouragement I have received over the past 10 years has been truly fantastic and is a testament to why Kennards is such a good company to work for. I’m absolutely certain that I’ll continue to receive that same support and encouragement over the next 10 years.” Darryl Lewisson - Fyshwick “When I look back to the day Kennards opened for business in NZ , I feel very privileged to have seen the growth of the NZ sites, who were then unknown and now are leaders in the NZ Storage Industry. I would like to take this opportu- nity to thank Andrew Kirkham for the leadership and Support he extends to all the NZ Team. Bev Brooking - TSM NZ

5 Years Service

Frank De Vlam Gary Stephenson Dennis McDonald

Campbelltown Gladesville Abbotsford Warriewood

Elle Graham Mark Burgess Ian Thompson Wes Sandford Bill McClean

Artarmon Belmont TSM VIC

THQ

Neil Pardoe

Castle Hill

Below L to R: Darren Marshall presenting 5 Years Service to Dennis McDonald, Bill McClean, Wes Sandford, Neil Pardoe and Mark Burgess. Absent: Frank De Vlam, Elle Graham, Ian Thompson.

8 Kennards Kourier October 2015

FEATURES

Storage Awards Night

Adding Value

SCOTY Gold

Awards Antone Boustani

TSM NSW

Cory Blake James Suh

Ultimo

TSM NSW

Certificates Neville Arkinstall Brianna Burns Matthew Jones

TSM QLD TSM NSW Wollongong

Shirley Wang

THQ

Frenchs Forest ‘ ‘ Slick advertising and great properties are merely the veneer covering what truly defines a Brand. Peel the layers back and inside the business we see what really matters - People, The Team - People Who Care. Sam Kennard Carl Spence Evan Thomas Robert Todd Owen Grasby Klemzig Springvale Brett Cleland Steve Chidgey Nigel Spragg Ivanhoe Milton

Cameron Ferguson Chris Rose Eric Conliffe Flex Dasquerzine

Wollongong

Mark Montgomery Matthew Jones Mike Howard David Courtney Chantal Bastiaans Amy Ferguson Dennis McDonald Emma Whetnall Glen D’Souza Renee Heit Dane Talbot David Oldham Jazmine Bellotti Johny Vaman Jai Tripathi

Above L to R: Adding Value Awards and Certificates: Shirley Wang, Matthew Jones, Brianna Burns, James Suh, Antone Boustani

Chatswood

Kirrawee

Auburn Matthew O’Brien Debbie Jones Maroochydore Stephan Wandl Leigh Chaney Abbotsford 1

Warana

Abbotsford

John Fenton John Golding Steve Jansen Varsha Samji

North Lakes

Pymble

Huntingdale

SCOTY – Most Improved Auburn Matthew O’Brien Debbie Jones SCOTY – Commitment to Occupancy Growth Vermont Glen D’Souza Renee Heit SCOTY - Commitment to Operational Excellence Frenchs Forest Carl Spence Evan Thomas SCOTY - Commitment to Improved Income Growth Napier Jayne Kiddell Joshua Johnston SCOTY - Commitment to Sustained Performance Tauranga Duncan Newington Darren Stringer Peter Backo Lisa Staples North Lakes

Rozelle

Kunda Park Geoffrey Turner Karly Murphy Burleigh Junction Patricia Larkins Brett Meekcoms Gladesville Leanne Nassif Gary Stephenson Port Melbourne Goran Vukovic Scott Griffiths-Hewitt Castle Hill Neil Pardoe Michael Baron Jordan Arico Flemington Trudy Iacobucci Azam Muhammad

Above L to R: Phone Sales Excellence: Kemal Sermen, Bill McClean, Matthew Jones, Sonya Jolley, Carl Spence, Tilley Leach, John Fenton, Johny Vaman, Dane Talbot, Maria Katselas, Mazen Trabolsi

Cont Pg 10

9 Kennards Kourier October 2015

FEATURES

10 Kennards Kourier October 2015

FEATURES

Kennards Adding Value To The Business And Our Customers Customer Feedback

“I visited Kennards Self Storage in Springvale today. I am impressed with the customer service and profession- alism of the staff members. I never used self storage previously, but your staff explained every single thing without me asking. Great service, will recommend to my friends.” “I received a call in Customer Care today from Heather. She was asking about buying corrugated cardboard and then got onto the subject of how great the staff were at Airds Road and what wonderful service she had received from them during her stay there. She asked me to pass on her thanks and to thank them for all they had done for her. She said she has very rarely, in her long life, received such great service.” “I would like to take this opportunity to thank Kennards Storage of Thebarton for the professionalism they have maintained in the running of this facility. The cleanliness, ease of access, use of lifting equipment and all round profes- sionalism is a credit to you. In the 15 months or so that we have used this facility we have never encountered any problems and have been completely satisfied with the use of this storage area. Thank you once again, it has been a pleasure.” “Thank you for your excellent service. Kennards Gladesville provided me with everything I wanted. Your staff were very helpful, security appeared excellent, the provision of trolleys meant I could remove or add items to storage easily and everything was easily accessible. There was a somewhat difficult traffic jam the day I came to remove goods, but I guess that just goes to show Kennards popularity!” “Great place. Using as storage and away from home office. Glen at North Lakes is really helpful and assisted in the installation of a power point while no other storage places would consider it a possibility. Definitely recommend.”

Fiona Harding and Angela Lu THQ

N

ational Account Customers, 810 units and more than 13,500 square metres stored over 83 centres.

Request to notify the move out/in date and the customers details, we do the rest. From a company perspective National Accounts is all about the bigger picture. These customers are more than rental income, we benefit from other recurring charges like goods and handling, standardised rubbish, power charges, shelving rent, insurance and adhoc charges all contributing to our revenue. We continue to work on Storman changes to improve the SMS function- ality and access lists for units with multiple representatives. In house we have made improvements to the invoicing portal to allow for faster corrections and from a customer perspective we have improved our email correspondence including a new look cover email when invoices are issued, blogs and centre improvement news and updates. When it comes to National Accounts we are all winners. We sincerely appreciate your participa- tion and support and we look forward to sharing our next update with you in the following Kourier. Angela Lu Financial Analyst

We have issued more than five million dollars’ worth of invoices in the past 12 months. We should be extremely proud of the value we’ve added to the business and the service we provide our customers. The way we manage National Accounts is unique. We definitely offer more to our customer. We provide one consoli- dated invoice, one master agreement, one point of contact and the opportu- nity for customers to take control of their account. Kennards is leading the way and our numbers stand for themselves. As our National Accounts continue to grow we are investing money and resources to improve our processes. - The National Accounts Portal is now more user friendly. - Move outs and move ins are now all performed at THQ, no longer do Teams need to go through two pages of instruc- tions, simply send through a Support We have made a few changes recently:

11 Kennards Kourier October 2015

FEATURES Great Start To The 2015/16 Financial Year W e have completed the June 2015 financial year and are well into the new financial year. Well how did we do and how are we going for 2016? The fact extra Profit Share was paid is a great indication of how 2015 went!! the Carbon Tax as well as signing an improved contract. With invoices being sent to centres through Medius it will allow Teams to monitor and manage their centre usage and costs. and Waterloo. However the expansions at Pymble, Maroochydore, Kunda Park and Wellington will improve revenue. The new centres at Mittagong and Pymble will continue to grow revenue

• Merchandise has seen a 1% improvement in the margins we make for each box sale. This is as a result of the change to WRS AMCOR targeted training and improved procedures – a great outcome from all centres. • Overall the business has improved profit margins by 1% which means every $1 of sales we generate an extra 1cent of profit. This has been achieved through revenue growth and managing costs. 2016 has got off to a cracker start with occupancy improving at most centres for July and August. • We are unlikely to see significant revenue growth from the newly acquired premises at Hawthorn, Seaford Meadows and Murarrie or the expansions at Macquarie Park, Petersham 2016 Budget

• Insurance income will be significantly improved after the changes in April 2015.

2015 Summary

• Available square metres grew 21k and Occupied square metres grew 29k, indicating we filled up more space than we have added. • This was seen in revenue which grew 10% over the prior year. • Bad debts saw a 15% increase over 2014 indicating we need to be more diligent with our delinquents. • Bank charges are 21% favourable to the prior year as a result of no AMEX charges in the current year. This was a very successful change for Kennards with minimal impact to our customers. • Electricity has shown a 9% reduction on the prior period as a result of the removal of

• Merchandise will continue to improve profitability.

• Electricity will continue to improve over 2015.

• The total profit margin is forecast to lift another 1%, this will be a great achievement.

Overall we have seen very solid growth in 2015 and this will continue in 2016.

We look forward to working with everyone to deliver great results in 2016 and continue to be part of a growing business as we strive to become a Famous Household Name .

Anthony Rous Chief Financial Officer Forget Hats Off, It’s Hair Off For The Worlds Greatest Shave! I n January this year Tony Vuong one of our Kennards Teammates and his wife Lauren found out their one year old daughter has Leukaemia.

Those diagnosed undergo very difficult treatment while their families roll through unimaginable emotions and strain. So Kennards Self Storage decided to put a Team together to raise money and participate in the World's Greatest Shave. The money raised went towards continuing work to support people with blood cancer and find better treatments and eventually a cure. The Kennards Team were able to raise $19,925 with the support of family and friends. Recently Sam Kennard (Managing Director) and wife Claire along with Tony Vuong (NSW Operations Manager) and wife Lauren were invited to an event at Government House For the World’s Greatest Shave, to be presented with a 'Top 30' Award for the companies achievements. The Kennards Team raised enough money to put them in the top 30 group in NSW. Kennards came 18th in the State. The Leukaemia Foundation work is so important; they provide practical and emotional support to people facing the challenge of blood cancer. This initiative was a modest gesture on Kennards part to help the people we know fighting this, as well as the many others fighting this and for research.

Above L to R: Claire Kennard, Sam Kennard, David Hurley (Governor for NSW) Tony Vuong and Lauren Vuong.

Above L to R: Sam Kennard, Anthony Rous, Jesse Dux and Dianne White

Sharon Dux EA to the MD

12 Kennards Kourier October 2015

FEATURES

Walkin The Mile

T he full morning walk around our storage centre seems to be a dying art, with less emphasis placed on its importance in comparison to other responsibilities that demand our time. Our centres continue to grow in size and our technology has improved over the years. Our computer systems and CCTV can now alert us to issues happening in our storage centre so does this mean the walk around is becoming redundant? I think not. Technology can only tell us part of the story going on in your centre. To understand the full story the morning walk around is an invaluable part of our daily routine. An age old practice that remains very relevant to this day and is so beneficial for the day to day running of our storage centres. KSS was the first and continues to be one of few operators that use the security stickers on customer’s locks. This allowed us to quickly and easily visualise each and every lock to ensure its integrity is in check. Physically checking every lock, every day on every unit ensures that we are across what happens in our centres. This is a point of difference to our competi- tors; often a decision clincher for a customer on who to store with and provides peace of mind that locks and storage units are checked every single day.

A lot can happen in storage centres overnight, in particular for our 24 hour centres where customers can come and go as they please. Checking every lock on every unit, every day means that we can identify customers who have moved out overnight.

It also allows us to look at the overall presentation of our centres. Our properties are on display every day for our customers, and they notice. Completing the full walk around in the morning means we can enhance and improve our sites first thing in the morning. I know some Managers do their morning walk around with a dust pan and broom. The ritual of conducting a full morning walk around the site is important for the physical well-being of our centres. Knowing what’s happening in your centre means you can act first. Acting appropriately, confidently and professionally with the right informa- tion. This instils confidence and trust in our customers in our ability to operate a self storage centre. In addition to our full morning walk around to check every lock, every day, cursory checks are encouraged throughout the day. Your visual presence around the centre also promotes a positive image for customers on site. It provides a perfect opportunity to speak with them and discuss how their storage experience is going. Don't be deterred, make the full morning walk around one of your strongest habits for maintaining and operating your storage centre. Walk the Mile! Darren Marshall General Manager

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A lot can happen in storage centres

‘ The full walk around acts as a security feature and alerts us to any undesirable activity such as a break in or damage to a customer unit or the property. Team Members have the ability to respond quickly and professionally with the customer and the authorities if necessary. The Lock Check is one of the most visible reinforcements we can provide to our customers that we take the security of their goods seriously. overnight, in particular for our 24 hour centres where customers can come and go as they please

13 Kennards Kourier October 2015

Wellington, Solid as a Rock FEATURES

W e might be right in a warehouse enterprise space, and you will find various definitions of what constitutes the meaning of a space in a standard Oxford English or Webster’s Dictionary. Our customers also have an intriguing and never ending way of defining our storage spaces with their own defini- tions ranging from a cage, storage box (certainly never confusing us with a merchandise box sale), a room, or just a ‘thingo’. A unit is defined as an individual thing or person forming an individual component of any larger or more complex compartment. Whereas a locker is a cupboard or compartment, a cage being a box or enclosure having openwork for confining or carrying any animal or prisoners, and a warehouse seen as a large building to store or distribute goods for sale. However, if there was an anecdotal word for all these definitions, they could all be defined as purely a space – a storage space. ‘Space’ definition can be related to a storage unit area or storage space but try explaining to some of your customers that our storage spaces can purely be a continuous area or expanse which is available or unoccu- pied, and see the intriguing reactions you’ll receive. With this in mind, our experience developing centre’s with varying space sizes, with a capacity to place all types and sizes of goods in our storage spaces makes what consti- tutes a storage space and its definition irrelevant. When is it just a space? When a potential customer enquires asking for a unit, locker, cage, warehouse or thingo. Wayne Birch VIC Operations Manager LOOKING FOR A THINGO? thinking that the defini- tion of a storage space is a unit, locker, or even

D uring the last three months, the majority of the earthquake strengthening work required to bring building three at Wellington up to standard has now been completed. This work was required for the new building standards in New Zealand resulting mainly from the Christchurch earthquakes in 2011. The strengthening work in technical terms was to increase the seismic bracing capacity of Building three by installing steel Eccentrically Braced Frames (EBFs) and reinforced concrete walls along with reinforced concrete foundation footings into the basement of the building. The new design also enabled a completely new floor to be added to increase the maximum lettable area. When this type of work is undertaken on an existing building that you did not originally build, there is always some unexpected challenges that pop up along the way, such as a false wall with hidden electrics behind it, or finding some beams missing that were supposed to be there according to the existing plans. However the contractor employed to complete the project, Trademark Construction have done a commendable job to date, in overcoming these issues and have maintained the timetable to ensure the completion date at the end of October remains. The final unit layout over the four new floors will result in 141 new units, adding 2,294 square metres to the Wellington M.L.A. The average unit size is 16 square metres with a bias toward larger size units to improve the centre mix which is currently overweighted by smaller unit sizes.

With the whole centre built into the corner of a hill, a natural sloping driveway at the rear of the property has allowed the third level in building one and the fifth level in building three to be accessed by this driveway, providing some added benefit of GR floor priced units and some larger enterprise space units. Building three will also have GR floor units at the front of the building, opening out onto the main road. The GR floor in building three has only 17 units at an average of 27 square metres, due to the demand for large ground floor units in the Wellington market place. These will definately rent up fast. The final unit layout over the 4 new floors will result in 141 new units, adding 2,294 square metres to the Wellington M.L.A. The tender for unit fit out has been finalised and we have asked for fast track Council permission to start the fit out on the completed basement and fifth floor levels, to ensure we bring these new units to the marketplace as soon as possible. So there is exciting times ahead for the Wellington Team, with the current occupancy of the existing buildings passing 80%. The completion of building three should see a continuation of rent up as increased demand for larger size units in the Wellington marketplace grows. Andrew Kirkham NZ Operations Manager ‘

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14 Kennards Kourier October 2015

PROPERTY

KSS To Open In St Marys

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‘ When fully developed the centre will have 750 spaces and an M.L.A. of 6,790 square metres centres catchment have been zoned for residential development. Thousands of new homes will be built along with Schools and Shopping Centres. There will also be a number of Enterprise Spaces at the new St Marys centre. When fully developed the centre will have 750 spaces and an M.L.A. of 6,790 square metres.

A Planning Application has Suburbs. The land is located at 61-73 Christie Road, St Marys, adjacent to the new emerging neighbourhood of Jordan Springs and Rodes Crossing. The property is owned by the Baudinet Family and will be their third storage centre to be managed by KSS. The area will be transformed in the years ahead. Large parcels of land within the been submitted with Penrith Council to develop a new KSS in Sydney’s booming Western

Roads and Maritime Services with Penrith Council have big plans to improve access and road networks in the area. It is expected that KSS St Marys will be on the corner of a new major intersection with new roads serving the new suburbs to the north. The new centre will be a mixture of two level and single level buildings. It will boast the usual KSS security features, access control and customer amenity features.

The new location serving this important market strengthens the KSS presence in the Sydney market. It is hopeful that construction will commence before Christmas with opening in middle of 2016. Sam Kennard Managing Director

KSS Seaford Meadows Perspective. Due for completion mid 2016

15 Kennards Kourier October 2015

PROPERTY

Spotlight On Warriewood

L ocated on the beautiful Northern Beaches, about a five minute drive from Mona Vale Beach, Kennards Warriewood opened in 1995 as a purpose built storage centre, ideal for the residents and businesses of the upper northern beaches. In the 1920’s new settlers came to Warriewood including several families from former Yugoslavia. The area expanded as a farming district, and was known as Glass City because the valley was covered with approximately 3,500 glasshouses, mainly used for cultivating tomatoes. Field crops were also grown. Production reached its peak between 1947 and 1954. From the 1960’s market gardening declined and some land was redeployed for nursery gardens. Most of Warriewood, apart from some pockets of light industry, was Zoned as a Rural Area until 1991 when the State Govern- ment permitted subdivision. By 2000 the rural character of Warriewood began to change as the valley became a suburb.

from lockers to 54 square metre spaces and we also have kayak, boat and caravan storage. Fast forward to 2015 and the centre has now finished its office renovation and is looking amazing! Customers think the new office and Size It room is great. Our customers enjoy our friendly approach and appreciate the service, security and cleanliness that we provided at our centre. We have a diverse mix of customer both rsidential and commer- cial and we find it’s never a dull day at Warriewood. Last month we reached over 90% occupancy and 700 units rented, which the Team is very proud of. The Team at Warriewwod consists of Manager Elle Graham and Assistant Manager Bob Dutfield, both maintaining their centre to a very high standard. Elle has worked with Kennards for five years, her first three years as a TSM. Bob has worked with Kennards for 16 years, all at the Warriewood centre. Team Warriewood

flat above the office. There are four buildings, the largest of all the buildings consisting of about 290 units. Fast forward to 2015 and the centre has now finished its office renovations and it looks amazing! Some of our site features include the wide generous driveways offering plenty of room for easy access. There is also an abundance of drive up and ground level spaces. The centre consisting of four separate buildings, each with two levels and four driveways. Our boat storage runs down the first driveway and can be seen from Mona Vale Road. All spaces are individually alarmed and access is available 24/7. We have 784 units on offer which totals over 7,424 square metres. We have over 30 different unit sizes available ranging

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The Warriewood centre consists of an office/Box Shop with a Managers

16 Kennards Kourier October 2015

PROPERTY

Property Development In Overdrive

Kunda Park

Maroochydore

Macquarie Park

Macquarie Park - New five storeys! Construction has commenced for our new five storey facility to the rear of THQ with Total Constructions winning the contract. Demolition of the existing warehouse was the first step. Date of completion is May 2016. Warrawong - Slow progress Progress is slow, testing for gas has been completed with results soon. Kunda Park - Ready for October Work is moving along well and on time for an October completion. Maroochydore - Demolition complete Demolition is complete and the first floor slab is down, with another level to go. Petersham - Tenders out Tenders have been called for the expansion of this site. As we adjoin the Fort Street School we aim to start construction before Christmas and continue through the Christmas Holidays so as to reduce the inconvenience for the students and teachers. Waterloo - Two additional levels Tenders have been called for the construction of two additional levels over the existing East Building. The project has some real challengers ahead as the new building is contained both within and over our largest KSS site, with no road access directly available to the construction area. The expansion will secure Waterloo as our largest single site with almost 3,000 units. Abbotsford - Ground works complete Demolition and ground works are complete. Preparation for the ground floor slab is underway. Hawthorn - In negotiations with builder After some delays with Melbourne Water we now have their approval and this has improved Councils assessment and Councils Approval is imminent. We are now moving forward with final negotiations with a builder to commence work before Christmas.

Seaford Meadows - DA with Council Close to securing approval from Council. We have started the tender process with builders. Murarrie - Awaiting Tenders Awaiting tenders from builders and final Council Approval. St Marys - With Council This is a managed centre and the owners are working through A revised DA is about to be submitted to Council, for a larger two storey building accommodating a wide mix of storage unit sizes. Pymble - Ready for Christmas Fit out of Level one has commenced with CCG being awarded the contract. Early December 2015 is the expected completion date. Chullora - Revised DA with Council A revised DA with additional units has been submitted to Council for this project. We hope to have DA Approval soon and call for tenders before Christmas. Fyshwick - Site expansion We are developing a concept plan for the expansion of our existing site into the adjoining property which we own and is currently let to other businesses. The Lease arrangements for these businesses expire within 12 months, we will submit our DA in this time frame. Wollongong - DA to be lodged Engineers have been engaged to conduct a flood study for this site to accompany our DA to be lodged in December. For regular updates follow Michael on Yammer and Twitter. Michael Macheledt & Craig Henery Development & Construction Team the approval process with Council. Penrith - DA ready for submission

17 Kennards Kourier October 2015

CHARITY

Stepping Stone House Sleep Out Supporting Homeless Youth

W hat a night! Friday the 18th September saw around 80 people brave the rain and participate in the Harbour Sleep Out to support youth who have endured a rough run in life. It was fantastic to see members from all over the community come together to support our youth. With this support Stepping Stone House are one step closer to helping even more disadvan- taged youth in Australia. Stepping Stone House to date have raised $65,111 and are hoping for even more donations. The event will run until the end of November. We encourage you to register as an individual or Team and sleep out in your back yard to help raise more funds for Stepping Stone House. Or you can simply make a donation by going to http://stepping- stonehouse.com.au/news-events/ so2015/ Kennards Self Storage made a financial donation in addition to a donation of 300 Kennards Boxes that were used by participants as shelter to sleep under on the night. Established in 1989, Stepping Stone House is a not for profit organisa- tion providing medium to long term accommodation, care and develop- ment for homeless and at risk young people aged 12 to 24 years old from around NSW.

Community Spirit in Vanuatu Liberty of Nations volunteers packing Kennards Boxes in Port Vila, filled with clothing, blankets and other household items for distribu- tion to the community.

The rebuild of the community after Cyclone Pam is now in full swing with local workers being trained to construct kit homes.

Hundreds of homes and re-roofing of homes on five islands will need to be built. So far three full shipping containers of blankets, linen, clothing and household needs, one and a half shipping containers of waterproof material and 13 containers (so far) of building materials have made their way to Vanuatu.

Sharon Dux EA to the MD

18 Kennards Kourier October 2015