Annual Report • Apr 29, 2022
Annual Report
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| About Self Storage Group | 3 |
|---|---|
| Letter from the CEO | 6 |
| Highlights 2021 | 8 |
| Key Figures | 9 |
| Board of Directors Report | 10 |
| Strategy ■ |
16 |
| Corporate development ■ |
17 |
| Corporate social responsibility ■ |
|
| and sustainability | 20 |
| Shareholders and financing ■ |
20 |
| Risks ■ |
21 |
| Employees and working conditions ■ |
22 |
| Corporate Governance ■ |
23 |
| Outlook ■ |
23 |
| Parent Company results ■ and distribution of funds |
25 |
| Management | 26 |
| Board of Directors | 27 |
| Corporate Social Responsibility and Sustainability Report |
28 |
| Corporate Governance | 40 |
| Consolidated financial statements | 49 |
| Notes to the consolidated financial statements |
54 |
| Financial statements Self Storage Group ASA |
95 |
| Statement by the Board of Directors | 115 |
| Alternative performance measures (APMs) |
116 |
| Global Reporting Initiativ (GRI) | 118 |
Self Storage Group (SSG) engages in the business of renting out self-storage units to both private individuals and businesses. The Group is a leading provider of self-storage services with facilities in Norway, Sweden and Denmark. The business model of the Group is to operate self-storage facilities in Scandinavia with a strong focus on cost effective operations, competitive rent levels and industry leading customer service. In order to achieve this, the Group is constantly working to increase the level of automation in all parts of the value chain. The Group's vision is to be a leading and preferred self-storage provider to individuals and businesses.
The Group operates under two separate brands: OK Minilager and City Self-Storage. These two brands focus on different market segments and provide a strong platform for serving customers with different preferences and needs.
The Group offers self-storage in all Scandinavian countries, with a primary focus on the major cities through City Self-Storage, and a nationwide presence in Norway through OK Minilager. All City Self-Storage facilities are climate controlled, while OK Minilager offers both climate controlled and container-based storage facilities.
Self Storage Group operates a total of 128 facilities as of December 2021 with a current lettable area of 171 800 m2. The Group focuses on maintaining a lean organisation and had 64 full time equivalents in 2021. The Group is headquartered at Skøyen in Oslo, Norway, where all administrative and central customer service functions are located. Site managers and other operationally-focused employees are located throughout Scandinavia with close proximity to the facilities.
2021 has been an exciting and eventful year for Self Storage Group. Our team has continued to deliver on SSG's strategy, we have achieved strong financial results, and our scalable platform has been strengthened even further. During 2021 we have continued to add more capacity to the market, at the same time as we have achieved attractive occupancy rates across the portfolio. The SSG team has worked tirelessly to develop new properties and to serve our customers, with impressive cost control. I am proud of the achievements of the SSG team.
A key development for SSG in 2021 was the strategic acquisition of Dit Pulterkammer (DPK), a Danish self-storage operator with 5 facilities in the Jutland area. With this investment SSG now has nationwide footprint in Denmark and we have developed an attractive platform for further growth in the Danish market.
An important milestone of the year was the opening of Breivollveien 25 in Oslo, the largest purpose-built self-storage facility in Norway. SSG also opened a number of new facilities and acquired several new freehold properties, in line with our strategy.
The value of our portfolio of freehold facilities increased to 2.4 billion NOK at the end of the year, an increase of 66% since December 2020. The Group had 171 800 m2 in current lettable area (CLA) as of December 2021. During 2021 SSG exceeded the target of opening 12 000- 14 000 m2 CLA in organic growth in addition to 9 400 m2 from the acquisition of DPK. Growth in CLA is a key performance indicator for SSG. SSG had 34 900 m2 of CLA under development at the end of the year. The strong pipeline will secure further scalable growth, and we plan to accelerate growth by opening 15 000+ m2 during 2022.
SSG has a business model with low carbon footprint, but there is still room for improvement. Sustainability is an integrated part of our business, and we are determined to make a difference for our customers, employees, and partners. During 2021, we continued to upgrade to LED-lightning on old and converted facilities. Most notably we consolidated the electricity purchases for our Norwegian companies to better monitor the consumption of electricity, and to secure electricity produced from renewable energy sources according to Directive 2001/77/EC. Several other initiatives have also been implemented, and the organization is highly motivated to continue the focus on sustainability in all parts of the business.
SSG continues to make investments in IT and branding, and we expect to see long-term effects of these investments, with increased customer satisfaction, scalable costs, and durable competitiveness. During 2021 the new positions CTO and CMO were recruited to ensure high quality and attention to these focus areas. Our Norwegian companies were unified on one CRM platform, and we launched a fully automated booking engine. In addition, a new branding and communication strategy for both brands was successfully launched.
Urbanization and smaller living spaces are macro trends which drive demand for self-storage, and we expect these trends to continue in the years to come. SSG has a robust financial position and a management team with a track record of creating profitable growth. This foundation and strong macro trends, combined with a portfolio of high-quality freehold assets, gives Self Storage Group a solid platform for future growth and value creation.
I´m proud of the dedication of our team, and the progress we have made the past year. Our company is well positioned for continued profitable and sustainable growth.
I thank our stakeholders for their efforts and engagement in 2021 and look forward to our continued cooperation in the year ahead.
Best regards,
CEO
2021 was another year with strong and positive development with solid organic revenueand EBITDA growth, development of new facilities and acquisition of new properties. At the end of 2021 two large greenfield projects in Oslo opened, and during the year the Group expanded the current lettable area (CLA) by 23 600 m2. Demand is strong and occupancy has exceeded our target of 90%. The Group's freehold investment property value exceeded NOK 2.4 billion at the end of the year, giving a loan to value ratio for the Group of 39%. The company has a strong pipeline and a solid foundation for further profitable growth and expansion in the Nordics.
| 2021 | 2020 |
|---|---|
| Full year | Full year |
| 346.1 | 293.3 |
| -13.3 | -9.4 |
| -129.9 | -108.5 |
| 3.4 | 1.7 |
| 206.3 | 177.1 |
| 189.5 | 162.7 |
| 320.0 | 92.9 |
| -46.4 | -63.0 |
| -19.1 | -45.1 |
| 444.0 | 147.5 |
| 351.3 | 114.3 |
| 171.8 | 148.2 |
| 34.9 | 30.4 |
| 128 | 116 |
1 Non-GAAP measures are defined in the corresponding section in the back of the report
1 Non-GAAP measures are defined in the corresponding section in the back of the report
Property-related expenses consist of maintenance, electricity, cleaning, alarm, insurance and other operating costs related to the facilities.
Property related expenses for 2021 were NOK 44.4 million, an increase of NOK 8.3 million compared to 2020. NOK 2.2 million of the increase in cost is related to new costs from DPK. The remaining part of the increase is mainly related to higher electricity costs in the winter-months than last year and the extreme power prices, and increased number of facilities in the portfolio.
Lettable area in SSG has increased by 23 600 m2 (16%) since December 2020, and the number of facilities has increased by twelve to 128 facilities as of end December 2021.
Salary and other employee benefits for full year 2021 were NOK 44.1 million, an increase of NOK 3.9 million from full year 2020, of which NOK 2.5 million relates to the acquisition of DPK.
The number of full-time equivalents (FTE) at the end of December 2021 was 65.4 FTE, an increase of 7.9 FTEs since the end of December 2020, including 4.5 FTEs following the acquisition of DPK. The management team has been strengthened with two new positions as CTO and CMO. In addition, a new project manager and caretaker has been added to the property-team.
Depreciation for full year 2021 was NOK 16.9 million, an increase of NOK 2.4 million from full year 2020. Depreciation related to DPK for the period 14 April 2021 to 31 December 2021 constitutes NOK 0.5 million of the increase. The depreciation is mainly related to fitout and other equipment for new facilities and expansions. Maintenance is posted as property-related expenses.
Other operating expenses consist of IT, sales and advertising, and other administrative expenses.
For full year 2021 other operating expenses amounted to NOK 41.4 million, an increase of NOK 9.2 million from full year 2020. There were non-recurring costs of NOK 3.9 million in 2021 impacting other operating expenses, compared to NOK 1.2 million in non-recurring costs in 2020. Adjusted for non-recurring acquisition costs, other operating expenses in full year 2021 increased by NOK 6.5 million compared with full year 2020. NOK 2.1 million is related to DPK.
Despite the growth of the company, the level of other operating expenses has been stable over many years and is expected to remain quite stable going forward when adjusting for costs related to acquisitions. Sales and advertising will, however, increase as revenue increases, since sales costs are related to online advertising and there are some costs related to being a listed company that will increase in order to be compliant and to ensure a sustainable growth.
Self Storage Group experiences strong demand, and occupancy hexceeded the target level of 90% several times in 2021. The current lettable area increased by 23 600 m2 during 2021, 14 200 m2 from organic growth and 9 400 m2from the acquisition of Dit Pulterkammer (DPK) which closed on 14 April 2021. Organic growth exceeded the forecast of opening between 12 000 and 14 000 m2 during the year. Due to the growth in lettable area and SSG's expansion plans, filling up capacity has been prioritized over increasing prices in 2021, but prices will be CPI adjusted in Q1 2022.
The value of the freehold portfolio increased by NOK 965.8 million during 2021 to a total of NOK 2 422 million. The increase from business combinations, acquisitions and expansions amounts to NOK 648.9 million, and the increase from change in fair value amounts to NOK 320.0 million. All freehold investments properties were appraised in the fourth quarter following the annual CPI adjustment of internal leases.
With the increasing size of the Group and freehold investment portfolio the Group has focus on planned maintenance, branding and organizational development to level up the scalable platform for future growth.
Self Storage Group has experienced limited business impact due to COVID-19 as of December 2021. All self-storage facilities have been open as usual for both existing and new customers during the COVID-19 pandemic. The Groups self-serviced and digitalised offering is by nature a safe and flexible solution for the customers.
The self-storage industry has a low environmental footprint with the use of electricity as the main source of CO2 emissions. During 2021, SSG had ongoing projects to increase the focus on sustainability and how to integrate this further in the business.
Revenue for full year 2021 increased by NOK 52.7 million to NOK 346.1 million compared with full year 2020. NOK 320.2 million is income from the rental of self-storage. Rental income from self-storage services increased with NOK 47.8 million, including NOK 15.8 million in self-storage revenue from DPK for the period 14 April 2021 to 31 December 2021. Other revenue increased with NOK 5.0 million in the period, including NOK 2.0 million from DPK. Other revenue consists of revenue from distribution of insurance, ancillary services, rental income from segments other than self-storage and other income.
Lease expenses constitute NOK 13.3 million for 2021, up from 9.4 million in 2020. The increase is related to the expiration of three long-term lease contracts that are negotiated to short-term and CPI adjustment on existing lease contracts, partly offset by a short-term contract negotiated to long-term. Lease expenses are impacted if long-term contracts expire and are renegotiated to short-term contracts, if new short-term contracts are signed, or if short-term contracts are renegotiated to long-term contracts. Average remaining lease period for leased facilities in the CSS-segment, including options, is 7.6 years. For OK Minilager, which has a number of short revolving contracts, the average remaining term is 2.0 years.
At the end of December 2021, 53% of the current lettable area in SSG is held freehold, compared to 43% at the end of December 2020. 44% of current lettable area in the City Self-Storage segment is freehold, while 68% of current lettable area in OK Minilager is freehold. The share of freehold property is increasing in both segments.
| Adjustments | 2021 | 2020 |
|---|---|---|
| Revenue: release of historical liability (Acquisition of Minilageret AS) |
507 | - |
| Other operating expenses: acquisition costs | -3 923 | -1 177 |
| Salary and other employee benefits: severance packages | - | - 538 |
| Total adjustments | -3 416 | -1 715 |
The fair value of freehold investment property is based on valuations by an independent appraiser, with intra group lease contracts at market terms as a basic principle. Annual CPI adjustment of the leases, changes in areas with lease-agreements and changes in yield impact the fair value.
Change in fair value for the full year 2021 was NOK 320.0 million compared to NOK 93.0 million in the full year 2020. In addition to the impact of the annual CPI adjustment of internal leases, the increase is related to yield compression in the market and development properties completed in 2021.
In the last part of 2021, there was a yield compression in the logistics and retail big box property segment, particularly in the central Oslo area. 52% of the freehold investment property value is in the Oslo and earlier Akershus area. The total average yield in the Group is reduced from 5.5% as of 31 December 2020 to 4.9% 31 December 2021 impacting the fair value adjustment in 2021.
Change in fair value of leasehold investment property relates mainly to passage of time of recognised leases under IFRS 16. Change in fair value of leasehold investment property recognised in the P&L for full year 2021 was NOK -46.4 million, compared to NOK -63.0 million for full year 2020. The decrease relates mainly to the two prior lease contracts in Adamstuen and Hvidovre, which now are accounted for as freehold investment properties, and changes in the length of some lease contracts that affect the classification of lease as short-term or long-term. Change in fair value of leasehold investment property recognised in the P&L will change if long-term contracts expire and are renegotiated to short-term contracts, or if short-term contracts are renegotiated to long-term contracts.
Fair value of freehold investment property was NOK 2 422 million and the fair value of leasehold investment property was NOK 444.3 million at 31 December 2021. Fair value of freehold investment property at 31 December 2020 was NOK 1 457 million, while the fair value of leasehold investment property was NOK 515.2 million.
EBITDA for full year 2021 was NOK 202.9 million, an increase of NOK 27.5 million compared to full year 2020. NOK 9.0 million of the increase in EBITDA is attributable to DPK. There were non-recurring items of NOK 3.4 million in full year 2021, compared to NOK 1.7 million in full year 2020.
Net finance amounted to NOK -19.1 million for full year 2021, compared to NOK -45.1 million for full year 2020. The effects on net finance are interest expenses on borrowings, interest expenses on lease liabilities, other financial expenses, unrealised gain and loss in foreign currency and positive and negative change in fair value of financial instruments. Detailed development on net finance is disclosed in note 12.
The change is related to increased financial income of NOK 33.7 million offset by decreased financial costs of NOK 7.7 million. Interest expense on borrowings for full year 2021 was NOK 21.5 million, compared to NOK 8.9 million for full year 2020. The increased expense on borrowings is related to increased loans and costs to the interest rate swaps.
Profit before tax for full year 2021 was NOK 440.6 million, an increase of NOK 294.8 million from full year 2020.
Total assets were NOK 3 491 million as of 31 December 2021, compared to NOK 2 582 million at 31 December 2020, an increase of NOK 909.0 million. Freehold investment property increased with NOK 965.8 million from 31 December 2020 to NOK 2 422 million as of 31 December 2021. The increase is mainly related to the acquisition of nine properties in Norway, fair value adjustments and the acquisition of DPK with five freehold self-storage facilities in Denmark. One of the acquired properties was acquired by executing the option from the Eurobox transaction in 2020 to acquire a neighboring building at Billingstad. The remaining increase in freehold investment property is related to investments in several development and conversion projects and exchange differences. Leasehold investment property was NOK 444.3 million at 31 December 2021, a decrease of NOK 71.0 million from 31 December 2020. The decrease is mainly related to the acquisition of a property where the Group had an existing long-term leasehold agreement on the premises and the change in fair value of leasehold investment property due to passage of time and currency differences on leasehold investment property in Denmark and Sweden in 2021. The decrease is partly offset by two options assessed reasonably certain to exercise.
Cash and bank deposits decreased by NOK 32.1 million to NOK 214.7 million at the end of December 2021 from December 2020. The main changes in cash and bank deposits in 2021 relates to net borrowings drawn up amounting to NOK 275.1 million, net proceeds from the private placement of NOK 292.0 million and net cash outflow on acquisition of investment property and additions to freehold investment property.
In 2021, SSG refinanced all existing debt to Handelsbanken with a new bank facility loan with Handelsbanken and Danske Bank amounting to NOK 984 million. In addition, SSG has a revolving credit facility of NOK 245 million of which non is drawn as of 31 December 2021. Interest-bearing debt1 amounts to NOK 944.3 million at the end of December 2021, an increase of NOK 271.1 million from December 2020. Loan to value1 of freehold investment property is 39% as of end December 2021, compared to 46% at the end of December 2020. The loan facility has several covenants2. As of 31 December 2021, the Group is not in breach of any of the covenants, and does not expect any breaches in the next 12 months.
At the end of December 2021 interest-bearing debt less cash was NOK -729.5 million. The interest-bearing debt is used for investments in freehold facilities, expansion of lettable area and development of the Group.
SSG invoices the customers in advance, which reduces credit risk and provides stable working capital. Other current liabilities consist mainly of prepaid income.
Total equity at the end of December 2021 was NOK 1 804 million, an increase of NOK 626.0 million from December 2020. The increase is attributable to the net proceeds from the private placement of NOK 292.0 million and the profit during the period. Lease liabilities at the end of December 2021 was NOK 468.7 million, a decrease of NOK 68.4 million compared to the end of December 2020. The decrease is mainly related to the acquisition of an existing leasehold agreement on the premises, lease payments due to passage of time and currency differences on lease liabilities in Denmark and Sweden. The decrease is partly offset by two options assessed reasonably certain to exercise. The equity ratio increased to 52% at the end of December 2021, from 46% at the end of December 2020.
1 Non-GAAP measures are defined in the corresponding section in the back of the report 2See note 23 for the Group's covenants
SSG has strong cash flow as customers are invoiced in advance and costs are predictable and stable. Net cash flow from operating activities for the year 2021 was NOK 174.3 million, compared to NOK 176.6 million for the year 2020. The decrease in net cash flow from operating activities adjusted for non-cash items for the year 2021 is mainly related to increase in prepaid expenses and timing differences for payments, partly offset by the increase in operational profit.
Net cash flow from investing activities for the full year 2021 was NOK -685.3 million compared to NOK -263.8 million a year earlier. Payments for investment property includes acquisition of new properties, development of properties and additions to existing properties. Payments for property, plant and equipment consists mainly of new fit-out. Net cash outflow for acquisition of subsidiaries includes business acquisition and acquisition accounted for as an asset acquisition if completed in the quarter. These investing activities are in line with the Group's strategy.
Net cash flow from financing activities for the year 2021 was NOK 479.8 million, compared to NOK 244.5 million a year earlier. In Q1 2021 SSG refinanced all existing debt to Handelsbanken with a new bank facility loan with Handelsbanken and Danske Bank amounting to NOK 984 million and a revolving credit facility of NOK 245 million. In Q2 2021 SSG drew up NOK 100 million on the revolving credit facility. The revolving credit was repaid in Q4 2021 following the completion of a private placement of NOK 300 million in gross proceeds in Q3 2021. Net cash flow from financial activities was affected by net borrowings drawn up amounting to NOK 275.1 million, net proceeds from the private placement of NOK 292.0 million and net payment of lease liabilities and payments of lease classified as interests amounted to NOK -61.8 million in the year 2021.
SSG's cash balance at the end of December 2021 was NOK 214.7 million.
Self Storage Group ASA was established in November 2016. The Company merged with Selvaag Self-Storage AS in January 2017. Self Storage Group ASA is the holding Company for the Group.
Revenue in 2021 of NOK 19.2 million and NOK 16.7 million in 2020 are mainly related to management fees and centralized services to group companies. Salary and other employee benefits in 2021 of NOK 22.7 million and NOK 19.0 million in 2020 are related to employees with HQ functions. Depreciation in 2021 amounted to NOK 0.9 million and NOK 0.8 million in 2020, mainly related to software and inventory. Other operating expenses consists of IT and related costs, audit and consultancy fees, in addition to office and travel costs. In 2021 other operating expenses were NOK 2.8 million compared to NOK 1.4 million in 2020. The operating costs in 2021 were impacted by transaction costs related to the acquisitions with NOK 0.8 million. In 2020 the operating costs were impacted by transaction costs related to the acquisitions with NOK 0.9 million.
Total assets were NOK 2 161 million at the end of 2021, compared to NOK 1 547 million at the end of 2020. Investment in subsidiaries has increased with NOK 600.0 million from 31 December 2020 to NOK 1 481 million as of 31 December 2021. Loans to group companies have increased from NOK 492.8 million as of end 2020 to NOK 537.2 million as of end 2021. Cash and bank deposits have decreased to NOK 60.4 million at the end of December 2021 from NOK 158.0 million one year earlier. The main changes in cash and bank deposits in 2021 relates to net borrowings drawn up amounting to NOK 275.1 million, net proceeds from the private placement of NOK 292.0 million and net cash outflow on loan to subsidiaries on NOK 644.3 million to acquisition of investment property and additions to freehold investment property. Total equity at the end of December 2021 was NOK 1 194 million, an increase of NOK 332.0 million from December 2020. The increase is attributable to the net proceeds from the private placement of NOK 292.0 million and the profit during the period. Self Storage Group ASA has a loan facility for purchase of freehold investment property. In 2021, SSG refinanced all existing debt to Handelsbanken with a new bank facility loan with Handelsbanken and Danske Bank amounting to NOK 984 million. In addition, SSG has a revolving credit facility of NOK 245 million of which non is drawn as of 31 December 2021. Interest-bearing debt1 amounts to NOK 949.8 million at the end of December 2021, an increase of NOK 275.8 million from December 2020. The loan facility has several covenants2. As of 31 December 2021, the Group is not in breach of any of the covenants and does not expect any breaches in the next 12 months.
Annual Report 2021 Annual Report 2021 16 17
SSG engages in the business of renting out self-storage units to both private individuals and businesses. The Group is a leading provider of self-storage services with facilities in Norway, Sweden and Denmark. The business model of the Group is to operate self-storage facilities in Scandinavia with a strong focus on cost effective operations, competitive rent levels and industry leading customer service. In order to achieve this objective, the Group is continuously working to increase the level of automation in all parts of the value chain.
The Group operates under two separate brands: OK Minilager and City Self-Storage. These two brands focus on different market segments and provide a strong platform for serving customers with different preferences and needs. The Group's vision is to be a leading and preferred self-storage provider. SSG offers self-storage solutions in all Scandinavian countries, with a primary focus on the major cities through City Self-Storage, and a nationwide presence in Norway through OK Minilager. All City Self-Storage facilities are climate controlled, while OK Minilager offers both climate controlled and container-based storage facilities.
SSG aims to develop a business model that is sustainable with a low carbon footprint, and the Group believes it to be important that it engages in how to make a difference for customers as well as for the employees. SSG is determined to include sustainability as an integrated part of the business. Even though the industry in general has a low carbon footprint, SSG still has potential related to sustainability, and plans to continue the journey to achieve its potential.
The strategy is to develop the Group further and to expand the total lettable area by investing in new freehold facilities. The Group seeks to strengthen its nationwide presence in Norway while at the same time optimising existing facilities in the portfolio. The Group is also looking at growing its portfolio in the Swedish and Danish markets, both through development of new facilities and acquisition of established self-storage providers. Going forward, new facilities will primarily be established as freehold properties to ensure long-term access to attractive locations at a lower running cost. In identifying such properties, the Group will focus on factors such as location, capex and conversion time. Freehold investment properties are held in the 100% owned company OK Property AS, and leased to the operating companies in the Group.
The Group is operating under both the OK Minilager and City Self-Storage brand and will continue to do so as these concepts target different market segments.
is a nationwide self-storage concept offered in the Norwegian market and the strategy is to continue to increase its presence in all major regions and communities in Norway. The planned expansion will mainly be composed of freehold properties, including a combination of purpose-built facilities and conversion of existing buildings. At the same time OK Minilager will have a strong focus on retaining its position as the most cost-effective player in the Norwegian market by continuously looking for innovative solutions to increase the customer experience and to increase operating efficiency.
is SSG's "urban concept", targeting the population in the major cities, currently serving Oslo, Stavanger, Trondheim, Stockholm, Copenhagen and the Jutland-area in Denmark. The strategy is to strengthen the market-leading position in the major cities in Norway by establishing more facilities at attractive locations. The group is also targeting growth within existing and new facilities in the Danish market, where City Self-Storage has a nationwide footprint following the acquisition of Dit Pulterkammer in April 2021. City Self-Storage will be opportunistic about potential mergers and acquisitions in the Nordics, both with regards to single facilities and other self-storage providers with a complementary portfolio of facilities. As with OK Minilager, the goal for City Self-Storage going forward is to increase the share of freehold facilities.
The Group is confident that it has multiple competitive strengths that separates SSG from other self-storage providers. These strengths have enabled the Group to achieve high historical growth and to establish a strong market position in all markets in which it operates. Through leveraging these competitive strengths, SSG expects to continue to grow and to confirm its position as one of Scandinavia's leading self-storage providers.
The Group is amongst the leading self-storage providers in Scandinavia with a particularly strong position in the Norwegian market. City Self-Storage and OK Minilager are on a stand-alone basis the two largest self-storage providers in the Norwegian market. This position has been built through careful planning and a dedicated focus on selecting the right type of facilities. SSG entered the Swedish and the Danish markets through the acquisition of City Self-Storage in 2016. With the acquisition of Eurobox in 2019 the leading position in the Norwegian market was solidified. Self Storage Group is the largest self-storage provider in Scandinavia and one of the largest operators in Europe measured by the total number of facilities. The group has a market leading position in Norway and a national footprint in Denmark. SSG is also a regional operator in the Stockholm area.
The combination of a countrywide presence in the "early stage" Norwegian market and a strong position in the more developed markets in Sweden and Denmark provides a strong foundation for future expansion and growth. The Group can act opportunistically with regards to setting up new facilities while leveraging its strong brand recognition, customer base and knowledge in the respective markets.
Self-storage is increasingly becoming an online industry where the majority of the enquiries are channelled through websites and mobile apps. As more and more facilities are becoming self-serviced, customer service is becoming an even more important aspect of the customer journey. SSG considers it a significant competitive advantage to provide a seamless and well-integrated user experience by combining easy to use online booking systems with around-the-clock accessible customer service on multiple platforms. Self Storage Group was a pioneer in this area and has constantly innovated in order to improve the user experience. The company offers user-friendly online booking solutions and personal customer service across several formats such as phone, mail, chat and social media. This has been a contributing factor to why both OK Minilager and City Self-Storage have established themselves amongst the leading self-storage providers in Scandinavia.
Both OK Minilager and City Self-Storage have displayed solid financial track records with increasing revenues and continuously improving EBITDA margins. The Group has an ambitious growth plan and the management team has demonstrated the ability to handle rapid growth without jeopardizing profitability. SSG has succeeded in attracting investors and raising capital, and is well positioned to execute its strategy.
On 24 February 2021, SSG signed an agreement for a new bank facility loan with Handelsbanken and Danske Bank. The bank facility refinances the existing bank loans and gives the Company flexibility for future growth.
On 26 May 2021 the annual general meeting of Self Storage Group ASA was held. All proposals set out in the notice to the general meeting were approved. Steven Skaar (chairman), Gustav Søbak, Yvonne Litsheim Sandvold, Ingrid Elvira Leisner and Carl August Ameln were elected to the Board of Directors. Steven Skaar represents Alta Lux Holdco S.a.r.l, an entity managed by affiliates of Centerbridge Partners.
On 24 August 2021 the company issued 10 350 000 new shares at a price per share of NOK 29.0.
| Acquired properties1 | Area | Transaction quarter | Total potential lettable area (m2) |
Transaction value (NOK million) |
Closing quarter | Estimated opening quarter |
|---|---|---|---|---|---|---|
| Property in Porsgrunn | Porsgrunn, Norway | Q1 2022 | 1 500 | 17.8 | Q4 2022 | Q1 2023 |
| Property in Skien2 | Skien, Norway | Q1 2022 | - | 8.5 | Q2 2022 | Q2 2023 |
| Property in Stange Næringspark | Stange, Norway | Q1 2022 | 600 | 5.3 | Q3 2022 | Q1 2023 |
| Nesseveien 2B | Harstad, Norway | Q1 2022 | 680 | 8.4 | Q1 2022 | Q3 2022 |
| Property in Storebotn Næringspark | Askøy, Norway | Q4 2021 | 1 050 | 12.0 | Q2 2022 | Q4 2022 |
| Molandsveien 339 | Arendal, Norway | Q4 2021 | 850 | 7.1 | Q3 2022 | Q4 2022 |
| Kartheia 5 | Kristiansand | Q4 2021 | 550 | 4.3 | Q1 2022 | Q2 2022 |
| Nordslettvegen 4 BC | Trondheim | Q4 2021 | 1 550 | 17.0 | Q1 2022 | Q3 2022 |
| Sørliveien 84, neighboring section property | Halden, Norway | Q4 2021 | 1 400 | 8.0 | Q1 2022 | TBD |
| Deliveien 21 | Vestby, Norway | Q4 2021 | 1 500 | 15.6 | Q4 2022 | Q1 2023 |
| Property in Kampenesmosen2 | Sarpsborg, Norway | Q4 2021 | - | 4.6 | Q1 2022 | Q2 2023 |
| Lundeveien 10 | Vennesla, Norway | Q4 2021 | 800 | 6.2 | Q1 2022 | Q3 2022 |
| Gardermovegen | Nannestad, Norway | Q4 2021 | 1 050 | 11.5 | Q3 2022 | Q3 2022 |
| Knarvik2 | Alver, Norway | Q3 2021 | - | 4.0 | Q2 2022 | Q1 2023 |
| Håvik E6 44 | Narvik, Norway | Q3 2021 | 200 | 1.0 | Q3 2021 | Q2 2022 |
| Billingstadsletta 91, neighbouring property | Asker, Norway | Q3 2021 | 3 150 | 32.8 | Q3 2021 | Q3 2022 |
| Petroleumsveien 8, neighbouring property | Stavanger, Norway | Q2 2021 | 1 700 | 16.0 | Q3 2021 | Q2 2022 |
| Verkstedveien 1 | Mo i Rana, Norway | Q2 2021 | 850 | 7.7 | Q4 2021 | Q2 2022 |
| Sørliveien 84, neighbouring section property | Halden, Norway | Q2 2021 | 500 | 3.8 | Q4 2021 | Q2 2022 |
| Dit Pulterkammer, five properties | Jutland and Aarhus, Denmark | Q1 2021 | 11 600 | 139.0 | Q2 2021 9 400 CLA in operation | |
| General Birchs gate 16, existing leasehold agreement on the premises (Adamstuen) | Oslo, Norway | Q1 2021 | 8 100 | 250.0 | Q1 2021 4 300 CLA in operation | |
| Hovebakken 29 | Sandnes, Norway | Q4 2020 | 1 300 | 18.0 | Q1 2021 | Q3 2021 |
| Hensmoen 8 | Hønefoss, Norway | Q3 2020 | 550 | 5.4 | Q2 2021 | Q3 2021 |
| Håndverksveien 2 | Langhus, Norway | Q3 2020 | 1 300 | 25.0 | Q2 2021 | Q3 2021 |
| Total | 40 780 | 629.0 |
1 Properties with closing quarter in 2021 or later 2Acquisition of plot
Self Storage Group is exposed to risk and uncertainty factors, which may affect some or all of the Group´s activities. The Group has financial risk, market risk, operational risk and risk related to current and future products. The complete range of risk factors is discussed in detail in note 5.
The Group has attractive financial terms on its loan, but is exposed to interest rate risk. In 2021 SSG entered into two five-year interest rate swaps to secure NOK 300 million and NOK 150 million of the interest-bearing debt with a fixed rate of 1.345% and 1.42%. In total the Group has interest rate swaps amounting to NOK 750 million. These agreements will reduce the risk of high volatility in future interest payments.
As set out in the corporate governance guidelines of Self Storage Group, the Board of Directors shall ensure that the Company has sound internal control and systems for risk management that are appropriate in relation to the extent and nature of the Company's activities. The objective for the Company's risk management and internal control is to manage, rather than eliminate, exposure to risks related to the successful conduct of the Company's business and to support the quality of its financial reporting.
Effective risk management and good internal control contribute to securing shareholders' investment in the Company and the Company's assets. The Board shall ensure that the Company's internal control comprises guidelines, processes, duties, conduct and other matters that:
manage commercial risk, operational risk, the risk of breaching applicable legislation and regulations as
regulations as well as with its internal guidelines for its activities, including the Company's ethical
The Board forms its own opinion on the Company's internal controls, based on the information presented to the Board. Reporting by executive management to the Board is prepared in a format that gives a balanced presentation of all risks of material significance, and of how the internal control system handles these risks. The Board develops and assesses the need for internal control systems which address the organisation and execution of the Company's financial reporting. These systems shall be continuously developed in light of the Company's growth and situation.
The Board ensures that the Company has the necessary routines and hired personnel to ensure that any outsourced functions are handled in a satisfactory manner. The Board also focuses on ethical guidelines ensuring that employees can safely communicate to the Board matters related to illegal or unethical conduct by the Company.
Self Storage Group ASA was listed on Oslo Stock Exchange in October 2017, leveraging on the acquisitions of Minilageret AS and City Self-Storage. The Minilager Norge group was acquired in January 2018, Eurobox in July 2019 and Dit Pulterkammer in April 2021. As the Group integrated the acquired companies, great attention was brought to corporate social responsibility, sustainability and business conduct across different borders and cultures. The Company aims to have a solid corporate culture and to preserve the integrity of the Company by helping employees practise good business standards.
The Group has implemented ethical guidelines as a part of the corporate governance framework to maintain high ethical standards in its business and relations with customers, suppliers, and employees. Self Storage Group´s Corporate Social Responsibility and Sustainability Report was developed in accordance with the Global Reporting Initiative Standards (GRI), GRI Core option, which can be found on pages 28-39 of this Annual Report.
The Self Storage Group ASA shares are listed on the Oslo Stock Exchange under the ticker "SSG." At the end of 2021, the Company had 94 678 584 outstanding shares, held by 851 shareholders. The nominal value of the Self Storage Group ASA share is NOK 0.10 per share.
The Group estimates that it has sufficient working capital for the 12 months following the balance sheet date. The Group has a solid balance sheet and signed an agreement for a new bank facility loan with Handelsbanken and Danske Bank to finance future growth in 2021. In accordance with section 3(3a) of the Norwegian Accounting Act, the Board of Directors, therefore, confirms that the going-concern assumption is met and that the annual accounts have been prepared in accordance with this assumption.
The Group places considerable emphasis on providing shareholders, and investors in general, with timely and relevant new information about the Group and its activities in compliance with applicable laws and regulations.
Self Storage Group is committed to increasing awareness of the stock in Norway and abroad. The management participates in roadshows following the quarterly publications, presents the Group at conferences and is available for conference calls on demand with investors. The list of shareholders includes a considerable number of Nordic institutional investors and private investors.
At year-end 2021, the Group had 89 (81) employees, of which 54 work fulltime. In 2021, the sickness absence in Self Storage Group was 5.7%. There were no absences due to injuries in the Group. The turnover in 2021 for full-time employees was 8.0%. SSG had 35 part-time employees in 2021 working with customer service.
The Group attempts to maintain a working environment where equal opportunities for all based on qualifications and irrespective of gender, age, sex, ethnicity, sexual orientation, disability, or any other protected status. SSG works actively to promote equality and prevent discrimination. At year-end 2021, women held 29% of the positions in the Group. Women held 30% of the full-time positions and 29% of the part-time positions. The real-estate industry has traditionally been dominated by men, but the share of women is increasing. The management team consists of six members of which one is female. The Board of Directors consists of three male and two female members. The Group had no temporary employees in 2021. The goal of the Group is to increase the number of female employees and steps are taken to recruit more women and increase the number of women in management positions through internal promotions. In the case of outside recruitment effort is made to include qualified women in the final interviews.
SSG aims to offer competitive remuneration to all employees, based on qualifications and experience, and irrespective of gender. The positions in the Group can be divided into three levels: the management team, middle-management and operations.
For operations, the average salary of women is below the average salary of men. The female part-time employees had on average a slightly higher wage-level than the male part-time employees. Wage and salary at the operation level is mainly impacted by experience and how many years the employee has been within the company. At the operation level, full-time employed men had on average eight years of seniority while full-time employed women had seven years of seniority in 2021. At the middle-management level, the average salary of women is below the average salary of men. At the management group level, the average salary of women is higher than the average salary of men. The salary at the middle-management level and management group level is mainly impacted by the degree of required formal competence and experience necessary for the different positions in addition the seniority.
The employees in Sweden and Denmark, and some leading positions in Norway could achieve a bonus in addition to salary when reaching certain KPI-targets. The management group and key employees are part of a long-term incentive program based on share performance.
A total of two employees were in maternity leave in 2021, two women. The average length of maternity leave was 13 weeks.
Further statement on equality can be found in Self Storage Group´s Corporate Social Responsibility and Sustainability Report, which can be found on pages 28-37 of this Annual Report.
The working environment in Self Storage Group is, in the Board's view, considered to be satisfying. The Company is committed to maintain an open and constructive dialogue with the employee representatives. The Company's operations are not considered to have any material impact on the climate and the environment.
The Board and management of Self Storage Group ASA are committed to maintain high ethical standards and promoting good corporate governance. The Company believes that good corporate governance builds confidence among shareholders, customers and other stakeholders, and thereby supports value creation over time. The equal treatment of all shareholders lies at the heart of the Company's corporate governance policy. The Company has only one class of shares, and all shareholders have equal rights. The Company's shares are listed and freely transferable.
SSG has directors and officers liability insurance for the Group. The insurance covers the Board's and the CEO's legal personal liability for financial damage caused by the performance of their duties.
The Company has, in accordance with applicable legislation and stock exchange listing rules, provided a report on the Company's corporate governance, which can be found on pages 40-46 of this Annual Report. The Corporate Governance Report is based on the Norwegian Code of Practice for Corporate Governance issued by the Norwegian Corporate Governance Board, dated 14 October 2021.
Self Storage Group (SSG or the "Company") is a leading self-storage provider in Scandinavia with two strong brands and concepts; City Self-Storage and OK Minilager as of 31 December 2021, the Group operates 128 facilities across Scandinavia with a total lettable area of 206 700 m2 and current lettable area of 171 800 m2.
There is a large untapped potential for the Groups services in Scandinavia as urbanization and smaller living spaces lead to an increased need for external storage solutions. Self Storage Group has established a solid and scalable platform and is well positioned for future growth in a growing market.
SSG has a proven track-record of developing and operating a portfolio of self-storage facilities, leveraging on a lean and operationally-focused organization to achieve industry-leading margins. The Group has a strong pipeline with 34 900 m2 of freehold lettable area under development. SSG also has a proven track record of growing through M&A.
SSG is focused on growing its freehold footprint, both by developing high-quality freehold facilities and opportunistically acquiring freehold properties where it has an existing leasehold interest.
The strong balance sheet, coupled with additional borrowing capacity, gives the Company additional investment capacity in 2022 and beyond.
With the increasing size of the Group and freehold investment portfolio the Group has focus on planned maintenance, branding and organizational development to level up the scalable platform for future growth. During 2021, SSG made new key recruitments and expanded the management team with both a CTO and a CMO hire. The Group continues to make investments in its digital platforms to increase automation and customer satisfaction. The roll out of a new identity and communication strategy for both brands were initiated in Q4 2021, and will continue in 2022.
Self Storage Group is experiencing robust demand for its facilities and is increasing occupancy, adding new capacity while at the same time achieving attractive rent levels. SSG has additional avenues for growth through already-acquired development opportunities and low-cost expansion within existing facilities. The Company developed 14 200 lettable m2 during 2021, and is aiming to accelerate development growth in 2022 with a projected addition of 15 000+ lettable m2.
SSG has built a unique and endurable market share position over the past three decades. With a solid financial position, a strong organization, and attractive assets, SSG is well positioned to leverage its scalable platform, setting the foundation for a great future.
Fabian Søbak CEO
Carl August Ameln Board member
Oslo, April 28th, 2022
| sign | sign | sign |
|---|---|---|
| Steven Skaar Chairman |
Gustav Sigmund Søbak Board member |
|
| sign | sign | sign |
| Ingrid Elvira Leisner Board member |
Yvonne Litsheim Sandvold Board member |
Net profit for the Parent Company Self Storage Group ASA, was NOK 39.9 million. The Board recommends the following distribution of funds:
| (Amounts in NOK 1 000) | |
|---|---|
| Dividend | - |
| Transferred to other equity | 39 901 |
Mr. Søbak co-founded OK Minilager AS together with his father, Gustav Søbak, in 2009. Since then, he has held the position as Chief Executive Officer, and following the acquisition of City Self-Storage in 2016, he
has held the position as the Chief Executive Officer of the combined company. Mr. Søbak is a Norwegian citizen, and resides in Oslo, Norway.
Mr. Høyer-Trollnes joined Self Storage Group in 2020. He has previously worked as CMO for Espresso House Group, and also held the positions of Regional Manager and Category Manager for Deli de Luca Norge AS.
Mr. Høyer-Trollnes holds a BSc from University of Manchester and an MSc from University of Strathclyde (Siviløkonom). Mr. Høyer-Trollnes is a Norwegian citizen and resides in Oslo, Norway.
Mr. Moen joined Self Storage Group in 2020. He has more than 25 years of experience from the self-storage business in Norway and Denmark. Mr. Moen has previously worked for First Risk Capital AS as Property
Manager and holds a Bachelor degree from BI Norwegian Business School. He is a Norwegian citizen and resides in Drammen, Norway.
Mrs. Hekneby joined City Self-Storage in 2015 and has following the acquisition of City Self-Storage held the position as Chief Financial Officer for the Group. Prior to this, she held the positions as Group Controller in Color
Line AS and Project Manager and Financial Controller in Posten Norge AS. Mrs. Hekneby holds a Master degree from Norwegian School of Economics and Business Administration (NHH). Mrs. Hekneby is a Norwegian citizen and resides in Oslo, Norway.
Mr. Gravnås joined Self Storage Group in 2021. He has previously worked as an IT Application Manager for SATS and Acta/Agasti and has also had several Consultant roles in the IT industry since 2006. Mr. Gravnås
holds a BSc from Østfold University College and MSc from Gjøvik University College, now NTNU. He is a Norwegian citizen and resides in Oslo, Norway.
Mr. Løyning joined Self Storage Group in 2021. He has more than 8 years of experience with marketing in the Scandinavian market. Mr. Løyning has previously worked as the CMO in Reisegiganten AS, and as a Digital
Marketing Manager in Ice Group. He holds a Bachelor's degree from BI Norwegian Business School. He is a Norwegian citizen and resides in Oslo, Norway.
Elected Chairman on 25 May 2020. Member of the Board since May 2020. Steven Skaar is a Senior Managing Director at Centerbridge Partners, where he leads the firm's European real estate investing activities. Prior
Member of the Board since May 2018. Ms. Leisner has previously worked as Head of Portfolio Management for Electric Power in Statoil Norge AS. She also has a background as a trader of different oil and gas products in her
to joining Centerbridge, Steven led the opportunistic real estate investments team in Europe at Brookfield Asset Management where he was involved in a wide range of corporate and asset acquisitions, including the acquisition of Center Parcs UK, Gazeley and the Interhotels Group. Prior to Brookfield, Steven spent 10 years at Citigroup, most recently as a Director for Citi Property Investors. Steven holds an MBA, with distinction, from Cornell University and a degree in Finance from the University of Utah. He is currently on the board of directors of Apcoa Parking AG. He is a US and UK citizen and resides in London, United Kingdom. Mr. Skaar has attended 25 of 25 board meetings in 2021. Mr Skaar is a representative of Centerbridge Partners, whose funds own 25 million shares in the Company. Mr. Skaar holds no shares in the Company directly. co-founded OK Minilager he built up a parking company which he eventually sold to a Norwegian subsidiary of Apcoa. He is a Norwegian citizen, and resides in Asker, Norway. Mr Søbak has attended 25 of 25 board meetings in 2021. Mr Søbak holds 6 565 000 shares in the Company through GSS Invest AS a company controlled by Mr. Søbak. Yvonne Litsheim Sandvold Board Member Member of the Board since October 2017. Ms. Sandvold is working board member of Saldvoldgruppen AS, and has extensive experience from the Norwegian real estate industry. Ms Sandvold currently serves on the
15 years in Statoil ASA. Ms. Leisner holds a Bachelor of Business degree (Siviløkonom) with honors from the University of Texas at Austin. She has served on the board of several companies listed on the Oslo Stock Exchange and is currently on the board of directors of Norwegian Air Shuttle ASA, TechStep ASA, Maritime and Merchant ASA, Elliptic Labratories ASA and Xplora Technologies AS. Ms. Leisner is a Norwegian citizen, and resides in Oslo, Norway. Ms Leiser has attended 25 of 25 board meetings in 2021. Ms Leisner holds 10 390 shares in the Company.
Member of the Board since November 2016 . Mr. S ø b ak co -fo un d e d OK Minilager AS together with his son, Fabian Emil Søbak, in 2009. Mr. Søbak has more than 30 years of experience in the real estate sector. Before he
board of directors of Oslo Børs listed company Aqualis ASA as well as several private companies. She holds a degree in psychology from the University of Oslo. Ms Sandvold is a Norwegian citizen, and resides in Oslo, Norway. Ms Sandvold has attended 25 of 25 board meetings in 2021. Ms. Sandvold holds no shares in the Company.
Member of the Board since May 2021. Mr. Ameln is the founder of First Risk Capital AS, the company that first introduced self-storage in Norway in the 1990s. Mr. Ameln holds a MBA from Seattle University and is currently
on the board of Hyrbox self-storage in Sweden, GardeTout in France, Trastero King in Spain and Storebox Self-storage in the UK and Ireland. Mr. Ameln is a Norwegian citizen and resides in Reistad, Norway. Mr Ameln has attended 15 of 16 board meetings in 2021. Mr. Ameln holds 2 600 000 shares in the Company.
The Group has prioritised three of the seventeen Sustainable Development Goals set out in the UN's 2030 Agenda for Sustainable Development. SSG sees the following goals as particularly significant to its business and the solutions the Group can contribute to:
SSG has a strong focus on employees and to provide a safe, productive, and positive work environment. To secure quality in deliveries and decent pay and working conditions for hired employees the Group requests suppliers and contractors to sign a declaration. Investments in new properties and expansions are made to increase lettable area available for the customers. Cost focus at all levels is considered vital to ensure profitability and further economic growth.
In the building and renovation process, the Group takes into consideration possible innovative environmental solutions for its properties and building projects to lower the energy consumption. SSG also focuses on using products of high quality to reduce negative environmental impacts throughout the lifetime of the buildings. By providing self-storage facilities close to where customers live, the customers can choose to live in smaller apartments with less storage space. Proximity to the facilities reduces the transportation-distance. As a contribution to the sharing economy and a sustainable sociality, some of SSGs facilities provide trailers and transportation cars for rent, reducing the need for each customer to own their own car.
The Group is continuously focusing on improving customer service, with staff and/or new technology. Self-storage is a product that let people store their belongings instead of throwing and purchasing new items.
The Group often converts old buildings not suitable for offices or housing that risk being demolished to self-storage. In the building process there is focus on sorting waste for recycling. Building's life cycle economical cost and life cycle environmental impact is emphasised when considering different solutions and choice of building materials. In the planning process efficient use of the building is essential.
Self Storage Group fulfils its corporate responsibilities by developing and running its operations profitably, and in a manner that is consistent with fundamental ethical values and respect for individual people, society as a whole and the environment. For Self Storage Group it is important to maintain a dialogue with the Group's most important stakeholders and review how they are affected by the ongoing business and how they will be affected by new decisions. This dialog makes the Group able to continue to improve the business and build trust with the stakeholders.
The Group has conducted a stakeholder and materiality analysis which identifies the economic, social, climate and environmental consequences of the company's operations that have the greatest impact on stakeholders' assessments and decisions.
As a basis for these analyses the Group has identified the groups, organisations and individuals that are impacted by the Group's operations or which have an impact on the Group's strategy and goal achievement. Further, this analysis has been used to identify and understand factors that are important for the business strategy and for the stakeholders. Material items are defined based on the management's experience of areas stakeholders have shown most interest for in during regular stakeholder dialog over the last years, and managements knowledge of the Group's impact on economic, social and environmental areas.
Self Storage Group's goal is to be the preferred self-storage provider in Scandinavia and generate profitability and return to its shareholders. The Group focuses on lean operations and automations. At the same time SSG aspire to offer industry leading customer service. The Group aims to develop a business model that is sustainable with low carbon footprint, and believes that it is important that the Group engage in how it can make a difference for costumers as well as for its employees. The Board of Directors emphasises the importance of sustainability as an integral part of the company's operations and development.
Sustainability is an integrated part of SSGs business. Sustainability is on the agenda in the management and board meetings to ensure continuously improvements. Even though the self-storage industry in general has a low carbon footprint, SSG still has potential related to sustainability. Management has evaluated how the Group can improve and integrate sustainability in the daily operations, and policies, targets, responsibilities, and action plans are established to continue the journey in a more formalized structure to achieve these potentials.
The Corporate Social Responsibility and Sustainability Report has been developed in accordance with the Global Reporting Initiative Standards (GRI), GRI Core option. The GRI Standards, applicable to all industries, include both relevant disclosures for a range of economic, environmental, and social topics as well as reporting principles related to the reporting process.
Industry,
The Group works continuously with health and safety matters for employees, customers and third parties. A safe and healthy working environment is fundamental to develop a sustainable business model and to attract and retain qualified employees.
To enhance wellbeing and reduce absence due to illness all full-time employees are part of a health insurance program. One of the benefits from the program is rapid and easily accessible free health treatment specialists for full time employees. During 2021 and 2020 COVID-19 many of the employees in the Group has worked from home, and to increase work comfort all employees have had the opportunity to borrow office equipment like chairs, screens etc. Management supervises all facilities at a regularly basis to ensure a safe environment, with severity and number of injuries being the most important measure. The absence due to illness for the Group in 2021 was 6.7%. This is an increase compared to earlier years mainly related to the pandemic. Due to few employees in some of the countries, figures are shown at group level in order to anonymise the employees.
All employees visiting construction sites are required to wear protection equipment. Injuries on employees are reported, measured, and followed up. There were no fatal or high consequence injuries in Self Storage Group in 2021. No fatal or high consequence injuries from customers have been reported.
| Vork-related injuries | |
|---|---|
| ----------------------- | -- |
Self Storage Group has implemented "suppliers declaration" for HSE, minimum wages etc. Currently this has been required for all new suppliers of a certain size related to facility management. This increases the control on working conditions at SSGs suppliers.
Integrity and human rights
Health and safety
The model below shows which groups of stakeholders which are regarded as most important for Self Storage Group:
The model below specifies the degree of importance for SSG's stakeholders, as well as what is important and relevant for Self Storage Group:
All the focus areas have either economic, social, or environmental impacts and are of great significance for Self Storage Group. Health and safety, integrity and human rights and employee wellbeing have all main significance for the company's social impacts. Resource efficiency has most significance for the company's environmental impacts and some for the economic impact. Customer satisfaction has main significance for the company's economic impact since satisfied customers stay longer, returns when similar needs arise and are ambassadors for SSG.
| Greater mpany's stakeholders |
A sustainable business model ■ Health and safety ■ Employees ■ Climate and environment ■ Timely reporting and legal compliance ■ |
|---|---|
| Significance to the co | Innovation ■ Integrity and human rights ■ Suppliers and business partners ■ Diversity and equality ■ Community impact ■ |
| Lesser | Significance for the company's economic, social and environmental impacts Greater |
| Work-related injuries | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Staff | Customers | Staff | Customers | ||
| Number of deaths | 0 | 0 | 0 | 0 | |
| Number of injuries that led to abscence | 0 | 0 | 0 | 0 | |
| Number of reported injuries | 1 | 0 | 0 | 0 |
Resource efficiency is essential when aiming to develop a business model that is sustainable with low carbon footprint. The Groups operations are not considered to have any material impact on the climate and the environment. Resource efficiency is nevertheless a prioritised focus area that also has an economic impact on the Groups financial results.
Self-storage is a product that helps people store their belongings instead of throwing away for later to buy new belongings. In addition, SSG provides self-storage facilities close to where customers live, thus reducing the need for transportation to the facilities for the customers.
SSGs business model focuses on buildings and materials with long lifetime and storage of customers belongings in climate-controlled environments. SSGs facilities are eighter new buildings purpose built according to strict Nordic regulations or converted old buildings not suitable for offices or housing that risk being demolished. If suitable, fit-out in good condition from closed facilities is dismantled and moved to new facilities. Self-storage buildings have a long, expected lifetime, and common renovation as in an office building is not needed. The Group requires recycling in the building process and on office facilities. In the building process the management focus on combining sustainable and green solutions with long term profitability.
Caretakers of the properties are hired locally if it is a suitable solution. This reduces the need of transportation to the different facilities across Scandinavia.
The Group has focus on energy management on all levels and is continuously focusing on reducing the energy consumption in the portfolio. SSGs buildings are equipped with few technical installations, and reducing the energy consumption is mainly done by keeping the temperature in climate-controlled environments at a low level, installing heat pumps and upgrading to LED-lightning with movement sensors. LED-lightning use less energy, has long lifetime, and has movement sensor in each lamp. As of December 2021, 71% of the owned facilities have full LED-lightening and 12% have partly LED-lightning. During 2021 SSG opened it's first facility with a green roof and several facilities with heating pumps. All new facilities are equipped with LED-lightning.
In 2021 the majority of the energy agreements were gathered at one supplier to start monitoring the energy consumption for all Norwegian facilities. The purchase of energy from this supplier is documented 100% renewable with power from hydro, wind and solar energy. Energy consumption is measured and KPI's and actions plans are established.
SSG acquired Dit Pulterkammer in 2021. One of Dit Putlerkammer's facilities, Randers, has a ventilation system powered by solar panels. This system reduces the humidity in the building, which reduces the need for heating at the facility. The Group plans to introduce this system at more facilities going forward.
SSG has calculated greenhouse gas emissions for 2021 based on the Greenhouse Gas Protocol Initiative (GHG protocol). For the Group, scope 1 includes emissions from fuel from vehicles owned by the Group and gas used to heat facilities. Scope 2 includes emissions from electricity and district heating used at the facilities. The market-based emissions from electricity documented 100% renewable are 0 CO2 e. In scope 3, emissions from air travels and fuel from vehicles owned by employees used at work are included. When employees travel by air, the Group always buys emission quotas. To allow users of the report to compare performance year to year with consistency, emissions in the development face of establishing new facilities are not included.
The highest environmental risk for Self Storage Group operations both on short and long term relates to water. More extreme water with heavy rain increases the risk for flooded buildings and SSG has high tension on roofing and other water related issues. Selected storage rooms on already opened facilities and all storage rooms on new facilities are equipped with special mats on the floor to reduce the risk of water damages for customers. Risks connected with water and climate are considered when acquiring new facilities. A risk map related to flooding for each facility is under preparation.
| Freehold facilities in operation (climate controlled) | 2021 | 2020 |
|---|---|---|
| Part of facilities with full LED-lightning | 71% | 68% |
| Part of facilities with partial LED-lightning | 12% | 11% |
| Part of facilities without LED-lightning | 17% | 21% |
| Greenhouse gas emissions | GHG emissions intensity | 2021 |
|---|---|---|
| GHG Scope 1 Emissions (annual tonnes CO2e) | Direct | 54.1 |
| GHG Scope 2 Emissions (annual tonnes CO2e) | Indirect/location based | 84.3 |
| GHG Scope 3 Emissions (annual tonnes CO2e) | Indirect | 8.1 |
Integrity and human rights are of great significance for the Group, and no violations on these are accepted. Most of our stakeholders do not assess this as a risk in Scandinavia. The Group has implemented ethical guidelines as a part of the corporate governance framework to maintain a high ethical standard in its business concept and relations with customers, suppliers, and employees. These guidelines ensure compliance with arm's length distance principles and minimise the risk for corruption. The Group pays tax to the local country and are not involved in tax planning.
The Group attempts to maintain a working environment with equal opportunities for all based on qualifications and irrespective of gender, age, sex, ethnicity, sexual orientation, disability, or any other protected status. At year-end 2021, women held 29% of the positions in the Group. When recruiting for new positions we aim to increase diversity. The Management group consists of six members, of which one is female. Female employees made up 17% of the Management team and 40% of the Board of Directors. The organisation is set up with a flat and unformal organisation model. Approximately a total of 15 different nationalities are represented in the Group.
| December 2021 | December 2020 | |||
|---|---|---|---|---|
| Number of employees | % | Number of employees | % | |
| Female | 26 | 29% | 28 | 35% |
| Male | 63 | 71% | 53 | 65% |
| Total | 89 100% | 81 100% |
SSG aims to offer competitive remuneration to all employees, based on qualifications and experience, and irrespective of gender. The positions in the Group can be divided into three levels: the management group, middle-management, and operations. The figure below shows an overview of Full Time Equivalents (FTE) and average salary divided into the three levels.
For operations, the average salary of women is below the average salary of men. The female part-time employees had on average a slightly higher wage-level than the male part-time employees. Wage and salary at the operation level is mainly impacted by experience and how many years the employee has been within the company. At the operation level, full-time employed men had on average eight years of seniority while full-time employed women had seven years of seniority in 2021. At the middle-management level, the average salary of women is below the average salary of men. At the management group level, the average salary of women is higher than the average salary of men. The salary at the middle-management level and management group level is mainly impacted by the degree of required formal competence and experience necessary for the different positions in addition the seniority.
The employees in Sweden and Denmark, and some leading positions in Norway could achieve a bonus in addition to salary when reaching certain KPI-targets. The management group and key employees are part of a long-term incentive program based on share performance.
A total of two employees were in maternity leave in 2021, two women. The average length of maternity leave was 13 weeks.
The employees are essential for the operation. At year-end 2021, the Group had 89 (81) employees, of which 54 worked fulltime. Details about the employees are listed in the table below, and there are no significant variations in these details from year to year. No assumptions are made in the below numbers. Due to few employees in some of the countries, figures are shown at group level in order to anonymise the employees.
The employees have different roles in the organisation, such as customer service, operation, facility management and administration. The Group is founded based on the two companies OK Minilager and City Self-Storage and has acquired four companies with employees since 2017. Several measures have been taken to integrate the different working cultures to one. Company awards are used in the Group to premiere good role models for the values set.
Self Storage Group needs a range of competence in the different roles in the organisation. It is important that the employees have the knowledge and competence to perform their role in a correct and safe way. All new employees are given necessary training to conduct their work. A start-up plan is normally made for new employees to ensure that they receive the necessary information and training related to their role. For customer service most of the training of new employees are performed side by side with experienced employees starting with the most basic tasks. New employees have a designated college available for questions and manuals to check when questions arise. Self Storage Group are proud to have high quality customer service employees that are available in person at manned facilities and on chat and at the phone at unmanned facilities to help the customers.
Many of the employees work on different facilities, and the intranet is important both for information to the employees and as a social platform where employees in all roles can communicate easily. The Group has low turnover (8% for 2021) and the average number of years an employee is employed is seven years (full time employees). All employees are free to be part of collective bargaining agreements. No employees are part of collective bargaining agreements as of December 2021.
In Self Storage Group annual employee appraiser interviews with all employees are conducted. This gives the employees an opportunity to discuss relevant items and to be followed up in a structured way. The Group has an annual employee survey, and the results for 2021 were overall positive with a score of 4.9 out of a total 6.0. The management has analysed the results of the survey and measures to increase the employee satisfaction will be implemented in cooperation with the employees.
| FTE | FTE in % of level | Average salary | |||||
|---|---|---|---|---|---|---|---|
| Women | Men | Total | Women | Men | Women | Men | |
| Level 1: Management team | 1.00 | 3.58 | 4.58 | 22% | 78% | 1 875 736 | 1 012 652 |
| Level 2: Middle- management | 4.17 | 9.00 | 13.17 | 32% | 68% | 623 027 | 725 268 |
| Level 3: Operations | 11.87 | 20.45 | 32.32 | 37% | 63% | 426 172 | 515 842 |
| Total | 17.04 | 33.03 | 50.07 | 34% | 66% | 559 393 | 626 795 |
| Part-time employees | 3.14 | 10.92 | 14.06 | 22% | 78% | 380 558 | 359 192 |
| FTE | FTE in % of level | Average salary | |||||
|---|---|---|---|---|---|---|---|
| Women | Men | Total | Women | Men | Women | Men | |
| Level 1: Management team | 1.00 | 3.90 | 4.90 | 20% | 80% | 1 609 064 | 895 596 |
| Level 2: Middle- management | 3.00 | 9.40 | 12.40 | 24% | 76% | 634 766 | 592 717 |
| Level 3: Operations | 12.80 | 19.50 | 32.30 | 40% | 60% | 422 882 | 482 838 |
| Total | 16.80 | 32.80 | 49.70 | 34% | 66% | 531 110 | 563 709 |
| Part-time employees | 4.90 | 9.80 | 14.70 | 33% | 67% | 331 095 | 341 994 |
| Country | Full time employees | Part time employees | Total | |||
|---|---|---|---|---|---|---|
| Women | Men | Women | Men | Women | Men | |
| Norway | 13 | 28 | 5 | 10 | 18 | 38 |
| Sweden | 3 | 2 | 2 | 7 | 5 | 9 |
| Denmark | 0 | 8 | 3 | 8 | 3 | 16 |
| Country | Full time employees | Part time employees | Total | |||
|---|---|---|---|---|---|---|
| Women | Men | Women | Men | Women | Men | |
| Norway | 13 | 24 | 5 | 15 | 18 | 39 |
| Sweden | 3 | 1 | 3 | 6 | 6 | 7 |
| Denmark | 0 | 5 | 4 | 2 | 4 | 7 |
Self Storage Group offer a service most people need at some point in life, and the goal is to be the preferred self-storage provider in Scandinavia. The Group has many customers, mainly in the private consumer market (80%), but also in the business market (20%). In the private consumer market moving, refurbishment, downsizing, need for additional storage, and student storage are the main reasons for demand, but in the business marked inventories, relocation, refurbishment, archive storage, and last mile storage are the main reasons for demand. Most of the business customers are in the private sector.
The customer's satisfaction is important of many reasons. Satisfied customers stay longer, returns when similar needs arise and are ambassadors for the company. SSGs goal is to be the preferred self-storage provider in Scandinavia. To adapt to different customers' needs Self Storage Group offer both manned and unmanned facilities. In this way both customers wanting personal service and customers wanting a self-service can be served.
As of December 2021, Self Storage Group has 128 facilities in Norway, Sweden, and Denmark through the concepts City Self Storage and OK Minilager, ensuring high availability for many existing customers and potential customers. The Group offers the customers 28 600 storage rooms. The average customer moving out had a rental time of 12 months.
City Self-Storage is member of the Self-Storage Associations in Norway, Sweden, and Denmark, and a representant from the management serve as member of the Board in some of the associations. The membership requires City Self-Storage to follow the industry standard and contribute to raise the quality for the customers.
Trustpilot is actively used to gain understanding and experience about the customers satisfaction and customer journey to continuously improve the self-storage service.
| OK Minilager (OKM) | |||||
|---|---|---|---|---|---|
| CSS Norway CSS Denmark | Dit Pulterkammer | CSS Sweden | OKM Norway | ||
| Description | Excellent | Excellent | Excellent | Excellent | Excellent |
| Rating Number of |
4.5 | 4.5 | 4.5 | 4.8 | 4.7 |
| reviews | 358 | 57 | 265 | 448 | 578 |
The Group seeks new solutions to continuously improve the customer service. By focusing on digital solutions, the customers' ability to help themselves are increased. New solutions are intuitive and easy, thus improving the customer's experience.
The CRM-system developed for OK Minilager has been upgraded and improved since 2018 to tailor the system to the Group's specific needs. The acquired companies Minilageret, Minilager Norge and Eurobox have successfully been migrated to the new platform. All new CSS-facilities since 2018 are also added to the new CRM-system. During 2021 the Group migrated remaining CSS-facilities in Norway to the new CRM-system. The migration of Dit Pulterkammer and CSS-facilities in Sweden and Denmark to the new CRM-system will start in 2023.
The focus on modern CRM is essential for efficient operations which is easy to scale up when new facilities are added to the portfolio. The management works close with operation and customer service to develop new solutions.
Self Storage Group mainly works with local suppliers both when establishing new facilities and in the daily business. Currently some IT- and marketing services are acquired from other European countries and self-storage fit-out for new facilities are acquired from abroad. The Group's suppliers vary between administrative services like marketing and IT-service, suppliers that are involved in caretaking and control of facilities in use, to construction workers on new facilities. The work performed by suppliers is not a significant portion of the daily operations.
Timely deliveries from suppliers are essential for the Groups operations and growth. To ensure that all suppliers follow laws and regulations the Group has started to use a supplier declaration. The declaration focuses on hired labours salary and rights, recycling, use of subcontractors and quality systems. There has been no significant change in suppliers or the supply chain in 2021.
Self-storage is a business with little traffic and limited pollution. Approximately 80% of the customers are individual customers, who rarely visit their storage room. Some facilities offer volunteer organisations discounts on storage.
Self-Storage Group provide the local community a service that local residents and businesses often are in need for. As a contribution to the sharing economy some of SSGs facilities provide trailers and transportation cars for rent, reducing the need for each customer to have their own car.
In 2021, Self Storage Group donate NOK 50 thousand to the voluntary organisation "Barn av rusmisbrukere". The organisation supports children who grow up with have parents or other close relatives who are drug addicts, both with social support and financial support as for example summer activities.
The Group is listed on Oslo Stock Exchange and follows all required reporting guidelines. All reporting has been made according to published financial calendar and regulatory deadlines. The goal is to continue to deliver timely reporting with high quality that contains all required information.
Financial reporting and legal compliance are focus on both Management and Board Meetings. This ensures that enough resources are allocated timely.
The Board of Directors of Self Storage Group has adapted the Company´s corporate governance policy document. This policy addresses the framework of guidelines and principles regulating the interaction between the Company's shareholders, the Board of Directors, the Chief Executive Officer (the "CEO") and the Company's executive management team.
The policy is based on the Norwegian Code of Practice for Corporate Governance issued 14 October 2021 by the Norwegian Corporate Governance Board. The Company will in accordance with applicable legislation and stock exchange listing rules provide a report on the Company's corporate governance in the directors' report or in a document that is referred to in the directors' report.
The Company's business as set out in the Articles of Association is to offer self-storage facilities, including investments in real estates and companies with similar activities. The Board of Directors long-term objective is to be the preferred self-storage provider in Scandinavia and generate profitability and return to its shareholders.
The Company will pursue the following main strategies to reach its overall objective:
The Company has formulated the following main values to form a guideline for the Company's business operations:
The Board of Directors should evaluate these objectives, strategies and risk profiles at least yearly.
The Company will maintain high ethical standards in its business and relations with customers, suppliers and employees. The following ethical guidelines shall be practiced in the Company, and shall apply to all employees of the Company:
integrity towards business relations and partners, customers and colleagues. All employees shall be treated equally regardless of race, gender and sexuality. The executive management team has a particular
a conflict between their own personal and/or financial interests and the Company's interests may occur. information related to the Company, shall conduct themselves and safeguard such information with
promise, request, demand or accept illegal or unjust gifts of money or any other remuneration in order
representatives shall never take part in any activities that may constitute a breach of competition legislation.
The Board aims to maintain a satisfactory capital structure in the Company in light of the Company's objective, strategy and risk profile, thereby ensuring that there is an appropriate balance between equity and other sources of financing. The Board shall continuously assess the Company's capital requirements in light of the Company's strategy and risk profile.
There is only one class of shares in the Company and all shares carry equal rights. The Company shall emphasise equal treatment of its shareholders.
The Group is currently focused on growing the business of the Group and has not paid out any dividend, nor made any decision to do so. However, based on future cash flow, capital expenditure, financing requirements and profitability, the Group may choose to adapt a more active dividend policy.
At the General Meeting in 2021 the Board of Directors was authorised to increase share capital with up to NOK 4 216 429.20 through one or several share capital increases. The authorisation may be used to provide the Company with financial flexibility, including in connection with investments, merger and acquisitions. The Board's authorisation is valid until the annual General Meeting in 2022.
At the General Meeting in 2021 the Board of Directors was authorised to increase the share capital. In effectuation of this authorisation, the existing shareholders pre-emptive rights to subscribe shares can be deviated.
Any transactions, agreements or arrangements between the Company and its shareholders, members of the board, members of the executive management team or close associates of any such parties shall only be entered into as part of the ordinary course of business and on arm's length market terms. All such transactions shall comply with the procedures set out in the Norwegian Public Limited Liability Companies Act. The Board shall arrange for a valuation to be obtained from an independent third party unless the transaction, agreement or arrangement in question must be considered to be immaterial. The Company's financial statements shall provide further information about transactions with related parties.
The Company has no own shares.
See also note 27.
Non-conformance with the recommendation: None
The shares in the Company shall be freely transferable.
Non-conformance with the recommendation: None
All shareholders have the right to participate in the General Meetings of the company, which exercise the highest authority of the Company. The annual General Meeting shall normally be held before 31 May every year.
The full notice for General Meetings shall be sent to the shareholders no later than 21 days prior to the meeting. The notices for such meetings shall include documents providing the shareholders with sufficient detail in order for the shareholders to make an assessment of all the cases to be considered as well as all relevant information regarding procedures of attendance and voting. The Annual Report will be made available on the Group's website. The Board and the Company's auditor shall be present at General Meetings.
Notices for General Meeting shall provide information on the procedures shareholders must observe in order to participate in and vote at the General Meeting. The notice should also set out: (i) the procedure for representation at the meeting through a proxy, including a form to appoint a proxy, and (ii) the right for shareholders to propose resolutions in respect of matters to be dealt with by the General Meeting.
The cut-off for confirmation of attendance shall be set as short as practically possible and the Board will arrange matters so that shareholders, who are unable to attend in person, will be able to vote by proxy. The form of proxy will be distributed with the notice.
The Company has a Nomination Committee as set out in the Articles of Association. The members of the Nomination Committee should be selected to take into account the interests of shareholders in general. The majority of the Nomination Committee should be independent of the Board and the executive management team. Members of the executive management team should not be members of the Nomination Committee. Instructions for the Nomination Committee shall be approved by the Company's General Meeting.
The nomination committee currently consists of the following three members: Dominik Jochem (chairperson), Lasse Høydal and Øyvind Hagelund. The current members have been elected by the General Meeting with a term until the Company's ordinary General Meeting in 2022.
Non-conformance with the recommendation: None
In appointing members to the Board, it is emphasised that the Board shall have the requisite competence to independently evaluate the cases presented by the executive management team as well as the Company's operation. It is also considered important that the Board can function well as a body of colleagues. Board members shall be elected for periods not exceeding two years at a time, with the possibility of re-election. Board members shall be encouraged to own shares in the Company.
The Board shall comply with all applicable requirements as set out in the Norwegian Public Limited Liability Companies, Act, the listing rules of Oslo Stock Exchange and the recommendations set out in the Norwegian Code of Practice for Corporate Governance.
At the General Meeting 26 May 2021, the following were elected to the Board of Directors for one year: Steven Skaar, chairman, Gustav Sigmund Søbak, Yvonne Litsheim Sandvold, Ingrid Elvira Leisner and Carl August Ameln. The Annual Report provides information about Board members' background, qualifications and independence. The Company does not have a corporate assembly.
The Board's primary responsibility shall be (i) participating in the development and approval of the Company's strategy, (ii) performing necessary monitoring functions and (iii) acting as an advisory body for the executive management team. Its duties are not static, and the focus will depend on the Company's ongoing needs. The Board is also responsible for ensuring that the operations of the Company are in compliance with the Company's values and ethical guidelines. The Chair of the Board shall be responsible for ensuring that the Board's work is performed in an effective and correct manner.
The Board shall ensure that the Company has a good management with clear internal distribution of responsibilities and duties. A clear division of work has been established between the Board and the executive management team. The CEO is responsible for the executive management of the Company. All members of the Board shall regularly receive information about the Company's operational and financial development. The Company's strategies shall regularly be subject to review and evaluation by the Board. Board members and members of the executive management team shall immediately notify the Board if they have any material direct or indirect interest in any transaction entered into by the Company.
The full Board of Directors has established an Audit Committee. The committee do not make decisions, and decisions on economic, environmental, and social topics are taken by the whole Board. The Audit Committee acts as a preparatory body and supports the Board in assessing the integrity of SSG's financial reporting, internal controls and financial reporting processes, compliance with ethical guidelines, overall risk management and review of the performance and independence of the auditor based on a formal instruction approved by the Board. The Audit Committee is chaired by Ingrid Elvira Leisner, and the other member is Gustav Søbak. The CFO and the Group Controller (secretary of the Audit Committee) attend as representatives of the management. The Group's auditor also participates in all meetings.
The Company has no remuneration committee. Guidelines for remuneration of the managing director and the executive personnel were approved at the General Meeting in May 2021. The Board shall prepare an annual evaluation of its work.
The Board shall ensure that the Company has sound internal control and systems for risk management that are appropriate in relation to the extent and nature of the Company's activities. The internal control and the systems shall also encompass the Company's guidelines etc. for how it integrates considerations related to stakeholders into its creations of value. It shall also ensure that environmental consequences, working environment and social aspects are reviewed when new services are considered, and that a precautionary principle is followed if environmental consequences are unclear. The objective of the risk management and internal control shall be to manage exposure to risks in order to ensure successful conduct of the Company's business and to support the quality of its financial reporting. Self Storage Group has documented internal procedures, including description of authority. Monthly financial reports are sent to the Board. There are monthly meetings among key finance personnel to review financial results, incidents, projects, estimates, etc. This input is used in the monthly reporting to the Board.
The Board shall carry out an annual review of the Company's most important areas of exposure to risk and its internal control arrangements.
The Board shall provide an account in the Annual Report of the main features of the Company's internal control and risk management systems as they relate to the Company's financial reporting.
The General Meeting shall annually determine the Board's remuneration. Remuneration of Board members shall be reasonable and based on the Board's responsibilities, work, time invested and the complexity of the enterprise. The Board shall be informed if individual Board members perform other tasks for the Company than exercising their role as Board members.
Work in sub-committees may be compensated in addition to the remuneration received for Board membership. No share options have been granted to members of the Board. The Company's financial statements shall provide information regarding the Board's remuneration.
Non-conformance with the recommendation: None
The Board decides the salary and other compensation to the CEO within any legal boundaries set out in the annual statement on compensation to the CEO and executive management as approved by the Company's General Meeting. The CEO's salary and bonus shall be competitive and otherwise on market terms for similar companies. Any fringe benefits shall be in line with market practice, and should not be substantial in relation to the CEO's basic salary. The Board shall annually carry out an assessment of the salary and other remuneration to the CEO.
The Company's financial statements shall provide further information about salary and other compensation to the CEO and the executive management team.
The CEO determines the remuneration of executive employees. The Board shall issue guidelines for the remuneration of the executive management team for approval by the General Meeting. The guidelines shall lay down the main principles for the Company's management remuneration policy. The salary level should not be of a size that could harm the Company's reputation, or above the norm in comparable companies. The salary level should, however, ensure that the Company can attract and retain executive employees with the desired expertise and experience.
The Board of Directors has established guidelines for remuneration of the key employees of the Company, and the remuneration report for 2021 will be presented to the Annual General Meeting in 2022.
Non-conformance with the recommendation: None
The Board and the executive management team assign considerable importance to giving the shareholders quick, relevant and current information about the Company and its activity areas. Emphasis is placed on ensuring that the shareholders receive identical and simultaneous information.
Sensitive information will be handled internally in a manner that minimises the risk of leaks. All contracts to which the Company becomes a party, shall contain confidentiality clauses.
The Company shall have clear routines for who is allowed to speak on behalf of the Company on different subjects, and who shall be responsible for submitting information to the market and investor community. The CEO and CFO shall be the main contact persons of the Company in such respects.
The Board should ensure that the shareholders are given the opportunity to make known their points of view at and outside the General Meeting.
In a take-over process, the Board and the executive management team each have an individual responsibility to ensure that the Company's shareholders are treated equally and that there are no unnecessary interruptions to the Company's business activities. The Board has a particular responsibility in ensuring that the shareholders have sufficient information and time to assess the offer.
In the event of a take-over process, the Board shall ensure that:
In the event of a take-over bid, the Board will, in addition to complying with relevant legislation and regulations, seek to comply with the recommendations in the Norwegian Code of Practice for Corporate Governance. This includes obtaining a valuation from an independent expert. On this basis, the Board will make a recommendation as to whether or not the shareholders should accept the bid.
Non-conformance with the recommendation: None
The Company´s auditor is EY.
Each year the Board of Directors shall ensure that the auditor presents to the Audit Committee a plan for the implementation of the audit work and a written confirmation that the auditor satisfies established requirements as to independence and objectivity.
The auditor shall be invited to all Board meetings where the annual accounts are on the agenda. Whenever necessary, the Board shall meet with the auditor to review the auditor's view on the Company's accounting principles, key aspects of the audit, risk areas, internal control routines etc. The auditor shall be invited to all Audit Committee meetings.
SSG has guidelines for the management's use of the external auditor for services other than auditing to ensure the work does not have the ability to affect or question the auditors' independence and objectiveness. The Chairman of the Audit Committee is delegated the authority to approve assignments in advance according to the guidelines. The Chairman of the Audit Committee has delegated its responsibility to approve assignments in advance for services required according to Norwegian Acts to the CFO of the Company. Responsibility for monitoring and compile use of external auditor for services other than auditing in an annual summary has been delegated to the secretary of the Audit Committee, who is the Group Controller.
At the Annual General Meeting, the Board shall present a review of the auditor's compensation as paid for auditory work required by law and remuneration associated with other concrete assignments.
In connection with the auditor's participation in the Audit Committee and the Board of Directors' consideration of the annual statements, the auditor also confirms his or her independence.
The Board shall arrange for the auditor to attend all General Meetings.
(Amounts in NOK 1 000)
| Note | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|---|
| Revenue | 7, 8 | 346 075 | 293 348 |
| Lease expenses | 7, 25 | -13 250 | -9 432 |
| Property-related expenses | -44 414 | -36 135 | |
| Salary and other employee benefits | 10 | -44 115 | -40 209 |
| Depreciation | 14, 15 | -16 863 | -14 476 |
| Other operating expenses | 7, 11, 27 | -41 373 | -32 138 |
| Operating profit before fair value adjustments | 186 060 | 160 958 | |
| Change in fair value of freehold investment property | 9 | 319 996 | 92 929 |
| Change in fair value of leasehold investment property | 9 | -46 356 | -63 010 |
| Operating profit after fair value adjustments | 459 700 | 190 877 | |
| Finance income | 12 | 36 273 | 2 603 |
| Finance expense | 12 | -55 357 | -47 659 |
| Profit before tax | 440 616 | 145 821 | |
| Income tax expense | 13 | -92 015 | -32 853 |
| Profit for the period | 348 601 | 112 968 | |
| Profit/loss attributable to owners of the parent | 348 601 | 112 968 | |
| Profit/loss attributable to non-controlling interests | - | - | |
| Earnings per share | |||
| Basic (NOK) | 21 | 3.96 | 1.34 |
| Diluted (NOK) | 21 | 3.96 | 1.34 |
| Other comprehensive income, net of income tax | |||
| Items that may be reclassified subsequently to profit or loss | |||
| - currency translation difference | -14 650 | 12 932 | |
| Other comprehensive income for the period, net of income tax | -14 650 | 12 932 | |
| Total comprehensive income for the period | 333 951 | 125 900 | |
| Total comprehensive income for the year attributable to owners of the parent |
333 951 | 125 900 | |
| Total comprehensive income for the year |
Total comprehensive income for the year attributable to non-controlling interests - -
Annual Report 2021 Annual Report 2021 50 51
Fabian Søbak CEO
Carl August Ameln Board member
Oslo, April 28th, 2022
| sign | sign | sign |
|---|---|---|
| Steven Skaar Chairman |
Gustav Sigmund Søbak Board member |
|
| sign | sign | sign |
| Ingrid Elvira Leisner Board member |
Yvonne Litsheim Sandvold Board member |
|
| (Amounts in NOK 1 000) | Note | 31 December 2021 | 31 December 2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Freehold investment property | 9, 24 | 2 422 368 | 1 456 522 |
| Leasehold investment property | 9, 25 | 444 253 | 515 227 |
| Property, plant and equipment | 14, 24 | 162 615 | 122 477 |
| Goodwill | 15 | 187 330 | 184 628 |
| Financial instruments | 6, 22 | 14 160 | - |
| Other intangible assets | 15 | 1 220 | 1 626 |
| Deferred tax assets | 13 | 91 | - |
| Total non-current assets | 3 232 037 | 2 280 480 | |
| Current assets | |||
| Inventories | 17 | 1 857 | 1 611 |
| Trade and other receivables | 18, 24 | 17 140 | 15 629 |
| Financial instruments | 6, 22 | - | 24 750 |
| Other current assets | 25 668 | 13 162 | |
| Cash and bank deposits | 19, 22 | 214 746 | 246 804 |
| Total current assets | 259 411 | 301 956 | |
| TOTAL ASSETS | 3 491 448 | 2 582 436 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Issued share capital | 20 | 9 467 | 8 432 |
| Share premium | 1 082 657 | 791 594 | |
| Currency translation reserve | -1 811 | 12 839 | |
| Retained earnings | 713 601 | 365 000 | |
| Total equity | 1 803 914 | 1 177 865 | |
| Liabilities | |||
| Non-current liabilities | |||
| Non-current interest-bearing debt | 23 | 892 626 | 519 429 |
| Non-current lease liabilities | 23, 25 | 422 479 | 487 887 |
| Other financial liabilities | 320 | 2 018 | |
| Deferred tax liabilities | 13 | 196 745 | 114 624 |
| Total non-current liabilities | 1 512 170 | 1 123 958 | |
| Current liabilities | |||
| Current interest-bearing debt | 23 | 51 644 | 153 699 |
| Current lease liabilities | 23, 25 | 46 192 | 49 216 |
| Trade and other payables | 12 804 | 15 777 | |
| Income tax payable | 13 | 10 478 | 11 994 |
| Other taxes and withholdings | 6 713 | 5 862 | |
| Other current liabilities | 26 | 47 533 | 44 065 |
| Total current liabilities | 175 364 | 280 613 | |
| Total liabilities | 1 687 534 | 1 404 571 | |
| TOTAL EQUITY AND LIABILITIES | 3 491 448 | 2 582 436 | |
| (Amounts in NOK 1 000) | Note | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit before tax | 440 616 | 145 821 | |
| Income tax paid | -14 330 | -7 460 | |
| Net expensed interest and fees on borrowings and leases Depreciation |
14, 15 | 37 468 16 863 |
29 987 14 476 |
| Gain/loss on disposal of property, plant and equipment | - 177 | - 208 | |
| Unrealised gain/loss in foreign currency | 12 | -9 745 | 12 842 |
| Change in fair value of financial instruments | 12 | -16 178 | 1 564 |
| Change in fair value of freehold investment property | 9 | -319 996 | -92 929 |
| Change in fair value of leasehold investment property | 9 | 46 356 | 63 010 |
| Change in trade and other receivables | -1 418 | 299 | |
| Change in trade and other payables | -3 974 | 8 462 | |
| Change in other current assets | -3 614 | -1 335 | |
| Change in other current liabilities | 2 438 | 2 029 | |
| Net cash flows from operating activities | 174 309 | 176 558 | |
| Cash flows from investing activities | |||
| Payments for investment property | -174 836 | -164 523 | |
| Payments for property, plant and equipment | -47 332 | -23 300 | |
| Proceeds from disposal of property, plant and equipment | 684 | 251 | |
| Net cash outflow on acquisition of subsidiaries | -463 862 | -76 202 | |
| Net cash flows from investing activities | -685 346 | -263 774 | |
| Cash flows from financing activities | |||
| Net proceeds from issue of equity instruments | 291 999 | - | |
| Proceeds from borrowings | 23 | 1 084 268 | 441 000 |
| Repayment of borrowings | 23 | -809 162 | -110 158 |
| Interest paid | 23 | -25 444 | -10 572 |
| Payments of lease liabilities | 23, 25 | -43 296 | -55 069 |
| Payments of leases classified as interest | 23, 25 | -18 527 | -20 666 |
| Net cash flows from financing activities | 479 838 | 244 535 | |
| Net change in cash and cash equivalents | -31 199 | 157 319 | |
| Cash and cash equivalents at beginning of the period | 246 804 | 88 117 | |
| Effect of foreign currency rate changes on cash and cash equivalents | - 859 | 1 368 | |
| Cash and equivalents at end of period | 19 | 214 746 | 246 804 |
| (Amounts in NOK 1 000) | Note | Issued Share capital |
Share premium |
Currency translation reserve |
Retained earnings |
Total equity |
|---|---|---|---|---|---|---|
| Balance at 1 January 2020 | 8 261 | 744 853 | - 93 | 252 032 1 005 053 | ||
| Profit (loss) for the period | - | - | - | 112 968 | 112 968 | |
| Other comprehensive income (loss) for the period net of income tax |
- | - | 12 932 | - | 12 932 | |
| Total comprehensive income for the period | - | - | 12 932 | 112 968 | 125 900 | |
| Issue of ordinary shares, net of transac tion costs |
20, 21 | 171 | 46 741 | - | - | 46 912 |
| Balance at 31 December 2020 | 8 432 | 791 594 | 12 839 | 365 000 | 1 177 865 | |
| Balance at 1 January 2021 | 8 432 | 791 594 | 12 839 | 365 000 | 1 177 865 | |
| Profit (loss) for the period | - | - | - | 348 601 | 348 601 | |
| Other comprehensive income (loss) for the period net of income tax |
- | - | -14 650 | - | -14 650 | |
| Total comprehensive income for the period | - | - | -14 650 | 348 601 | 333 951 | |
| Issue of ordinary shares, net of transac tion costs |
20, 21 | 1 035 | 291 063 | - | - | 292 098 |
| Balance at 31 December 2021 | 9 467 | 1 082 657 | - 1 811 | 713 601 1 803 914 |
Self Storage Group ASA ("the Company") is a public listed Company incorporated and domiciled in Norway. The address of the registered office is Karenslyst allé 2, 0278 Oslo.
Self Storage Group ASA is the parent company of the Self Storage Group. The Group provides self-storage facilities to customers throughout Norway, Sweden and Denmark.
These consolidated financial statements were approved for issue by the Board of Directors on 28 April 2022. Some minor rounding differences may occur, entailing that the total may deviate from the total of the individual amounts. This is due to the rounding to whole thousands of individual amounts.
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied in all periods presented. Amounts are in thousands of Norwegian kroner (NOK) unless stated otherwise. The functional currency of the parent company is NOK, which is also the presentation currency of the Group.
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. The consolidated financial statements have been prepared on the historical cost basis except for investment property and interest rate swaps, which are measured at fair value with changes recognised in profit or loss.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgements in applying the Group's accounting policies. Areas involving a high degree of judgment or complexity, and areas in which assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.
The consolidated financial statements incorporate the financial statements of the Group and entities controlled by the Group. Control is achieved when the Group has power over the investee, is exposed, or has rights to, variable returns from its involvement with the investee, and has the ability to use its power to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.
Business combinations are accounted for using the acquisition method. The consideration transferred and all the identifiable assets and liabilities of an acquired business are measured at fair values at the date of acquisition. Acquisition-related costs are generally recognised in profit or loss as incurred. Goodwill is measured at the amount by which the total consideration transferred exceeds the net fair value of assets acquired. Goodwill is not amortized, but its value is tested for impairment at least annually, or more frequently when there is an indication that the cash-generating unit to which goodwill has been allocated, may be impaired. Goodwill is allocated to each of the Group's cash-generating units (or groups of cash generating units) that is expected to benefit from the synergies of the combination. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
The Group earns revenue from acting as a lessor in operating leases which do not transfer substantially all of the risks and rewards incidental to ownership of an investment property. In addition, the Group subleases investment property acquired under head leases. All subleases are classified as operating leases. Rental income arising from operating leases on investment property is accounted for on a straight-line basis over the lease term and is included in revenue in the statement of profit or loss due to its operating nature in accordance with IFRS 16. Revenue income is presented net of rebates and other similar allowances. Revenue from retail sales and distribution of insurance is recognised according to IFRS 15 when control of a good or service transfer to a customer.
store their goods is dependent on size of unit and storage facility location. Customers are either automatically charged on a monthly basis (credit card payments) or invoiced on a monthly basis in advance. The customer may choose to be charged in advance for 6 and 12 months in order to receive a discount.
storage, through the storage provider or through their own insurance. When insurance is bought through the storage provider the performance obligation is satisfied over the insurance period. The Group acts as an agent in these arrangements and revenue is recognised net of costs. Customers are invoiced on
The Group leases properties, containers and trailers. Lease terms correspond to the term of the lease contract, unless the Group is reasonably certain that it will exercise contractual extensions or termination options. From 1 January 2019 leases are recognised according to IFRS 16 as a right-of-use asset and corresponding lease liability at the date at which the leased asset is available for use, see note 3. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. The right-of-use assets of leasehold investment property is measured at fair value, and all other right-of-use assets are depreciated over the shorter of the lease term and their useful lives.
Lease liabilities are measured at the net present value of lease payments due under the contract, less any lease incentives receivable, plus the costs of purchase or termination options if reasonably certain to be exercised. At year-end lease payments are increased with annual inflation for the upcoming year when known. Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.
The incremental borrowing rate for all lease contracts with under ten years maturity are based on NIBOR plus margin mark-up. The incremental borrowing rate for all lease contracts with over ten years maturity are based on rent for ten-year government bond plus margin mark-up. The Group use margin mark-up from the last signed bank facility loan as margin mark-up in the incremental borrowing rate since financing of the Group is centralized. The Group assess the risk profile for this type of lease contracts as similar inside Scandinavia, therefor no country risk mark-up is added.
The Group leases properties that meet the definition of investment property. For accounting policies for leasehold investment property, refer to the policies on investment properties.
Other right-of-use assets, as containers and trailers, are measured at cost, comprising the initial measurement of lease liability, lease payments made at the commencement date, initial direct costs and estimated restoration costs, less any lease incentives received.
In measuring of right-of-use assets non-lease components are not included. Lease payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. The right-of-use assets are subject to impairment, and the Group assesses, at each reporting date, whether there is an indication that an asset may be impaired.
Freehold investment property are properties held to earn rentals and/or for capital appreciation. Freehold investment property is measured initially at cost, including transaction costs. Subsequent to initial recognition, freehold investment property is measured at fair value. Gains and losses arising from a change in the fair value of freehold investment property are included in profit or loss in the period in which they arise. Expenditures such as ongoing maintenance, are expensed, while other expenses that are expected to generate future economic benefits are capitalised.
A freehold investment property is derecognised upon disposal or when the freehold investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period during which the property is derecognised.
Leasehold investment property is measured at fair value. Gains and losses arising from changes in the fair value of leasehold investment property are included in profit or loss in the period in which they arise. Change in value is outlined by the value adjustment due to passage of time, and no terminal value exists. All options starting within the next seven years and reasonably certain to exercise are included.
In measuring of right-of-use assets non-lease components are not included. Lease payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss.
In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the closing rate of exchange confirmed by the Central Bank of Norway in effect at the reporting date.
For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Group's foreign subsidiaries are translated into NOK using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences are recognised in other comprehensive income and accumulated in equity.
Income tax expense represents the sum of taxes currently payable and deferred tax.
Current tax payable is based on taxable profit for the year. Taxable profit differs from "profit before tax" as reported in the consolidated statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred taxes are recognised based on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for taxable temporary differences and deferred tax assets arising from deductible temporary differences are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Currently, no deferred tax asset has been recognised in the consolidated financial statements of the Group.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arise from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses (see impairment of assets below). Acquisition cost includes expenditures that are directly attributable to the acquisition of the individual item.
Depreciation is calculated on a straight-line basis in order to write down the cost of the tangible assets to their residual values over their expected useful lives. If significant individual parts of the assets have different useful lives, they are recognised and depreciated separately. Depreciation commences when the assets are ready for their intended use. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
At the end of each reporting period, 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). Assets that are subject to depreciation or amortization are tested for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill is tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.
An impairment loss is recognised if the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. For the purposes of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash inflows (cash-generating units). An impairment loss is recognised immediately in profit or loss, reducing the carrying value to the recoverable amount.
Non-financial assets (or cash generating units) other than goodwill that have suffered impairment charges are reviewed for possible reversal of the impairment at each reporting date. A reversal is recognised immediately in profit or loss and increases the carrying amount of the asset to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset or cash-generating unit in prior years.
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a first-in-first-out (FIFO) basis. Net realisable value represents the estimated selling price for inventories less all costs necessary to make the sale. Appropriate impairment losses have been recognised for obsolescence.
Cash and short-term deposits in the balance sheet comprise cash at bank and other short-term highly liquid investments with original maturities of three months or less.
The Group's financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets are added to the fair value of the asset. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value, with net changes in fair value recognized in the statement of profit or loss. This category includes derivative instruments to acquire investment property. The Group applies the same methodology to perform valuation on these derivatives as on investment property. The financial asset is de-recognized when the company either exercise the derivative (and obtain right to investment property) or the derivative expires without the Group declare the right to exercise. The Group executed the derivative for a property in Asker in July 2021.
The Group's financial assets classified as "amortized cost" consist of "trade and other receivables" and "cash and cash equivalents". Financial assets classified as "fair value through profit or loss" consist of "financial instruments". Management determines the classification of its financial assets at initial recognition, and the basis of classification depends on the entity's business model and the contractual cash flow characteristics of the financial asset.
Financial assets are assessed for indicators of impairment at the end of the reporting period subject to the expected credit loss model. For trade receivables, the Group applies a simplified approach in calculating expected credit loss. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. For financial instruments assets are valued according to fair value at the end of the reporting period.
Debt and equity instruments are classified either as financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Group are recognised at the proceeds received, net of any issue costs. Transaction costs directly attributable to the issue of equity are recognised directly in equity, net of tax.
The Group's financial liabilities are classified as "other financial liabilities" and consist of "debt to financial institutions" and "trade and other payables". These financial liabilities are initially recognised at fair value and subsequently measured at amortized cost using the effective interest method.
The Group's financial liabilities are measured and classified in the categories as "fair value through profit or loss" and "other financial liabilities". Financial liabilities classified as "other financial liabilities" in the balance sheet are recognised at fair value through profit and loss. All other financial liabilities are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method.
Interest-bearing bank loans and overdraft are initially recorded at fair value, net of directly attributable transaction costs, and subsequently measured at amortised cost using the effective interest method. Finance charges, including premium payable on settlement or redemption and direct issue costs, are accounted for on an accrual basis in the income statement using the effective interest method and are included within the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
The statement of cash flows is prepared using the indirect method. This means that the statement is based on the Group's profit before tax in order to present cash flows from operating, investing and financing activities respectively. Cash payment made in acquiring subsidiaries less the cash acquired as part of the transactions is reported under Cash flows from investing activities.
Earnings per share are calculated by dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated as profit or loss attributable to ordinary shareholders of the Group, adjusted for the effects of all potential dilutive options.
All relevant new and revised IFRSs and IFRIC interpretations that are mandatory for periods commencing 1 January 2022 and earlier have been adopted for all periods presented in these consolidated financial statements. There are no new standards, amendments to standards or interpretations which material affect the consolidated financial statements of the Group in 2022.
There are no new standards or amendments in short term perspective which have been issued, but are not yet effective, that are considered to have an impact on the Group. The Group intends to adopt these standards, if applicable, when they become effective.
In the application of the Group's accounting policies, as described in note 2, management is required to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities. Estimates and judgements are evaluated on an on-going basis and are based on historical experience and other factors, including expectations of future events that are considered to be relevant.
Freehold investment property is acquired with the aim of achieving a long-term return from rental income and increase in value. Freehold investment property is recognised at fair value, based on market values identified by an independent appraiser. Gains or losses as a result of changes in the market value is recognised in profit or loss as they arise and are presented on a separate line "Change in value of freehold investment property".
Freehold investment property is measured initially at cost, including transaction costs. Transaction costs associated with properties acquired through business combinations (as defined in IFRS 3) are expensed.
Subsequent expenditure is added to the freehold investment property's carrying amount, if it is probable that future financial benefits associated with the expenditure will flow to the Group and the expense can be measured reliably. Other maintenance costs are recorded through the income statement in the period in which they are incurred. Freehold investment properties are valued at each reporting date. The values are estimated by an independent appraiser. The valuation is based on the individual property's assumed future cash flows, and property values are arrived at by discounting cash flows with an individual risk-adjusted required rate of return. Events that can trigger the individual rate of return are changes in the market situation, damages on the building or changes in lease arrangement.
The required rate of return for each property is defined as being a long-term risk-free interest rate plus a property-specific risk supplement. The latter is defined on its location, standard, occupancy rate, tenants' financial reliability and remaining lease term. Known market transactions with similar properties in the same geographical area are also taken into consideration. See also note 9.
The carrying amounts of non-current tangible and intangible assets are assessed by means of impairment tests whenever there is an indication of impairment. Any impairment of goodwill is nevertheless assessed at least annually. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require management to estimate the future cash flows expected to arise from the cash-generating unit and a set discount rate in order to calculate present value. As of 31 December 2021, the amount of goodwill tested for impairment amounted to NOK 187.3 million. No impairment losses were recognised in 2021 or 2020. Details of the impairment test calculation are set out in note 15.
The Group has several leases with options to extend the term of lease. When determining the lease liability of the Group, the following principles were applied to options. All extension options on leasehold investment property starting within the next seven years and reasonably certain to exercise are included in the lease liability, as these are established facilities with high occupancy that require significant investment to move and are therefore reasonably certain to be kept in use for as long as possible under current conditions. The Group assess that changing market conditions and the increased amount of freehold properties can affect future decision of exercising options. Therefor only options starting within the next seven years are included. Leases used in administrative and supporting functions were determined to be more flexible therefore management determined these did not meet the reasonably certain criteria and were not included in the lease liability.
The Group cannot readily determine the interest rate implicit in leases where it is the lessee, therefore, it uses the Group's incremental borrowing rate. This is the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.
(Amounts in NOK 1 000)
The Group's financial assets and liabilities comprise financial instruments, cash and bank deposits, trade receivables, trade payables, loans from financial institutions, obligations under finance leases and various other financial assets and liabilities. Financial assets and liabilities are classified at initial recognition, and subsequently measured at amortised cost, fair value through other comprehensive income, or fair value through profit or loss. Refer to note 22 and note 23 for further details.
The Group finances its activities through borrowings, by issuing equity instruments and with cash flow from operations. The Group does currently not use financial derivatives. The Group is subject to market risk (foreign currency risk and interest rate risk), credit risk and liquidity risk.
The Group experienced limited business impact from COVID-19 in 2021. The management has focused on potential impacts related to COVID-19 on the Group's financial results, but the business impact in 2021 has been limited.
Subsequent of 2021, Russia went to war against Ukraine. SSG has no direct exposure to Russia and Ukraine, and the war has a limited effect on the Group. However, we see a sharp rise in energy prices from an already high level, and the conflict may create greater uncertainty on the world's energy situation. This element may affect SSG in 2022, but the extent of the impact and the consequences are still unclear.
The Group manages liquidity risk by forecasting and monitoring cash and liquidity needs on an on-going basis and maintaining adequate cash-reserves. The Group is in a growth phase and is investing in new properties, expansions and fit out for new facilities. The growth is primarily financed through cashflow from operating activities and facility loans. Increased facility loans instead of more expensive building loan are chosen if considered the best economic option. The Group has sufficient cash available to meet its obligations as of 31 December 2021. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed terms.
Credit risk is the risk of a counterparty defaulting. The Group's credit risk is limited to trade receivables and is mitigated by the fact that a credit check is performed, using credit rating agencies, for all new customers. Credit quality of a customer is assessed based on recommendation from the credit rating agencies and credit history. Rent is generally invoiced monthly in advance. Historically, losses on receivables have been low and an allowance has been made for anticipated future losses on current balances. Outstanding trade receivables are regulatory monitored and followed up. The Group has not seen increased losses on receivables due to COVID-19 in 2021. Other financial assets comprise largely bank deposits. The carrying value of the bank deposits and receivables represents the Group's maximum exposure to credit risk. See also note 18.
The Group is exposed to interest rate risk through its financial activities. The interest-bearing debt consists of two elements, 3 months Nibor + a fixed charge of basis points. The purpose of the Group's interest rate risk management is to reduce interest costs and at the same time keep the volatility of future interest payments within acceptable limits. The Group manage interest rate risk by entering floating-to-fixed interest rate swaps. In 2021 two interest rate swaps were entered.
The following table illustrates the sensitivity of the Group to potential interest rate without interest rate swaps. The calculation is based on a change in the average market interest rate for each period, and the financial instruments held at each reporting date that are sensitive to changes in interest rates. The table also shows interest rate swaps as of December 2021 replacing 3 months Nibor.
Exposures to currency exchange rates arise from the Group's purchases abroad, which are primarily denominated in DKK, SEK, EUR and GBP. There is a smaller amount of purchases in foreign currency. Profit after tax for the Group is also affected by changes in exchange rates, as the results of foreign companies are translated into Norwegian kroner at the weighted average exchange rate for the period. In addition, the Group is exposed to changes in exchange rate on intercompany loan from the parent company to the subsidiary in Denmark where the loan is in DKK.
The following table shows currency effect on the Group's profit if the exchange rates fluctuate with +/- 10% measured against NOK:
The main purpose of the Group's capital management is to maintain a good balance between debt and equity, in order to maximize the value of the shares in the Group through creation of dividend and underlying values, while also maintaining a good credit rating and obtaining loan terms with lenders that reflect the risk profile of the Group. This also ensures short-term and long-term financial flexibility for the Group.
The Group has defined a target for the loan to value ratio which shall not exceed the current loan to value covenants in the covenants in the Group's bank facility loan. The covenants also specify requirements in relation to the Company's financial strength. As of 31 December 2021, the Group is compliant with all loan covenants, and also expects to comply with covenants throughout 2022.
Interest rate sensivity Change in interest rates in basis points Effect on profit before tax
| 2021 | 50 | -4 721 |
|---|---|---|
| - 50 | 4 721 | |
| 2020 | 50 | -3 366 |
| - 50 | 3 366 |
The average effective interest rate on financial instruments were as follows:
| 2021 | 2020 | ||
|---|---|---|---|
| Bank loans | 2.77 | 1.74 | |
| Fixed interst rate agreements |
Amount | Maturity date | Interest rate (%) |
| Handelsbanken | 150 000 | Mar-25 | 1.080 |
| Handelsbanken | 150 000 | Apr-25 | 0.790 |
| Handelsbanken | 300 000 | Mar-26 | 1.345 |
| Handelsbanken | 150 000 | Mar-26 | 1.420 |
| 2021 | 2020 | ||
|---|---|---|---|
| Foreign currency sensitivity |
Changes in currency |
Effect on profit before tax | Effect on profit before tax |
| DKK | 10% | 17 910 | 3 971 |
| -10% | -17 910 | -3 971 | |
| SEK | 10% | 1 154 | 1 065 |
| -10% | -1 154 | -1 065 | |
| EUR | 10% | - 566 | - 759 |
| -10% | 566 | 759 | |
| GBP | 10% | - 65 | - 185 |
| -10% | 65 | 185 |
(Amounts in NOK 1 000)
The Group has net cash outflow on acquisition of subsidiaries of NOK 464 million in 2020. One of the acquisitions in 2021 meet the definition of a business combination. The remaining of the acquisitions did not meet the definition of a business combination and are accounted for as asset acquisitions.
On 14 April 2021, SSG acquired 100% of the shares in Dit Pulterkammer Holding A/S, a Danish regional self-storage operator with five strategically located facilities in the Jutland region and Aarhus area and a current lettable area of approximately 9 300 m2. The transaction has an enterprise value of DKK 102 million (approx. NOK 139 million) and was financed with SSG's existing bank facility.
Dit Pulterkammer Holding A/S is the parent company of Dit Pulterkammer A/S. The Company was acquired with the purpose of continuing the expansion of the group's activities and to build a national footprint in Denmark. Dit Pulterkammer group will be reported as part of the CSS segment.
The cash consideration is adjusted for changes in work in capital. Subsequent to the acquisition all interest-bearing liabilities were settled with cash, amounting to NOK 96.0 million.
Assets and liabilities assumed in connection with the business combination of DPK have been recognised at their estimated fair value on the completion 14 April 2021. Freehold investment property is recorded to fair value based on valuation from an independent appraiser. Surplus value is identified related to fit-out, and the fair value is based on management's best estimate. No other adjustments to the carrying values of assets and liabilities have been identified. The purchase price allocation is preliminary and may be subject to change within 12 months from completion date, which is one year from the date of the acquisition.
| Main business activity | Date of business combination |
Proportion of voting equity acquired |
Acquiring entity | |
|---|---|---|---|---|
| Dit Pulterkammer Holding A/S |
Self-storage solutions | 14-Apr-21 | 100% | City Self-Storage A/S (Denmark) |
| Dit Pulterkammer | |
|---|---|
| Cash | 37 456 |
| Total consideration | 37 456 |
Goodwill originating from the business combination is related to the fair value of the five properties in operation, and the value stems from the synergies of the net assets of the business, as well as from other benefits, such as the ability to earn monopoly profits and barriers to market entry. No impairment has been recognised subsequent to the business combination.
Goodwill that has arisen as part of the business acquisition is not tax deductible.
The acquired companies do not impact consolidated revenue and profit before acquisition date 14 April 2021.
The revenue and net profit for the full year 2021 are estimated to be approximately NOK 21.6 million and NOK 5.1 million respectively, if the Company had acquired DPK with effect from 1 January 2021. EBITDA for the full year 2021 is estimated to NOK 12.0 million. Estimated consolidated figures for the year 2021 are according to Danish GAAP.
Transaction costs related to the acquisition are recorded in 2021 and amounted to NOK 3.1 million.
Identifiable assets and liabilities recognised on the date of the business combination
| Carrying amount 14 April 2021 |
Fair value adjustments |
Fair value 14 April 2021 |
|
|---|---|---|---|
| Freehold investment property* | 128 348 | - | 128 348 |
| Fit-out and property, plant and equipment | 3 876 | 5 572 | 9 448 |
| Trade receivables | 1 006 | - | 1 006 |
| Software | 1 811 | - 1 811 | - |
| Cash and cash equivalents | 16 | - | 16 |
| Deferred tax liability | - 2 275 | - 828 | - 3 103 |
| Interest-bearing liabilities | - 96 045 | - | - 96 045 |
| Trade payables | - 495 | - | - 495 |
| Tax payable | - 129 | - | - 129 |
| Other current liabilities | - 3 950 | - | - 3 950 |
| Net assets | 32 163 | 2 934 | 35 097 |
*DPK has historically reported under Danish GAAP with investment property recorded at historical cost less accumulated depreciation and amortization. As part of transition to IFRS investment property is recorded to fair value in accordance with IAS 40
| Dit Pulterkammer | |
|---|---|
| Consideration | 37 456 |
| Fair value of identifiable net assets acquired | - 35 097 |
| Goodwill | 2 359 |
(Amounts in NOK 1 000)
Management has determined the operating segments based on reports reviewed by the CEO and management team and Board of Director's, and which are used to make strategic and resource allocation decisions. The Group reports management information based on the two concepts offered by the Group, City Self-Storage (CSS) and OK Minilager (OKM), in addition to the Group's property companies in the Property segment and Self Storage Group ASA (SSG ASA) in separate segments. Other/elimination includes eliminations of intercompany transactions and the remainder of the Group's activities not attributable to the other operating segments. The Group reports management information according to earlier accounting standard IAS 17, and the segment report are not adjusted for IFRS 16 impacts.
Dit Pulterkammer is reported as part of the CSS segment.
The total of Rental income from self-storage services and Other income in the segment reporting corresponds with the line item Revenue as recognised under IFRS. Other income mainly exists of income from ancillary services and rental income from segments other than self-storage.
Nationwide presence in Norway offering climate controlled storage units and container based
Climate controlled facilities in all Scandinavian countries, currently serving Oslo, Stavanger,
| OK Minilager (OKM) | storage. |
|---|---|
| City Self-Storage (CSS) | Trondheim, Stockholm, Copenhagen and the Jutland-area in Denmark |
| Property | expenses are eliminated on Group level. |
| SSG ASA | SSG ASA includes administration and management activities. |
| Other/eliminations | ments described above. |
The ownership and development of property. Internal lease agreements with the operating companies in the group, in addition to external lease agreements. The internal income and
Elimination and the remainder of the Group's activities not attributable to the operating seg-
| For the year ended | Other/ elimina |
IFRS 16- adjust |
|||||
|---|---|---|---|---|---|---|---|
| 31 December 2021 | CSS | OKM Property SSG ASA | tions | ment* | Total | ||
| Rental income from self-storage | |||||||
| services | 229 326 | 90 918 | - | - | - | - | 320 244 |
| Other income | 19 326 | 1 079 | 85 671 | 507 | -80 752 | - | 25 831 |
| Lease expenses | -116 700 | -39 555 | - | -1 320 | 80 752 | 63 573 | -13 250 |
| Other operating costs | -86 653 | -22 262 | -16 951 | -4 279 | - | 243 | -129 902 |
| EBITDA | 45 299 | 30 180 | 68 720 | -5 092 | - | 63 816 | 202 923 |
| Reconciliation to profit before tax as reported under IFRS | |||||||
| Depreciation | -16 863 | ||||||
| Change in fair value of freehold | |||||||
| investment property | 319 996 | ||||||
| Change in fair value of leasehold | |||||||
| investment property | -46 356 | ||||||
| Finance income | 36 273 | ||||||
| Finance expense | -55 357 | ||||||
| Profit before tax | 440 616 |
| For the year ended | Other/ elimina |
IFRS 16- adjust |
|||||
|---|---|---|---|---|---|---|---|
| 31 December 2020 | CSS | OKM Property SSG ASA | tions | ment* | Total | ||
| Rental income from self-storage | |||||||
| services | 193 799 | 78 676 | - | - | - | - | 272 475 |
| Other income | 13 649 | 2 326 | 64 511 | 85 | -59 698 | - | 20 873 |
| Lease expenses | -105 654 | -35 493 | - 7 | -1 227 | 58 283 | 74 666 | -9 432 |
| Other operating costs | -70 495 | -20 961 | -16 154 | -2 509 | 1 415 | 222 | -108 482 |
| EBITDA | 31 299 | 24 548 | 48 350 | -3 651 | - | 74 888 | 175 434 |
| Reconciliation to profit before tax as reported under IFRS | |||||||
| Depreciation | -14 476 | ||||||
| Change in fair value of freehold | |||||||
| investment property | 92 929 | ||||||
| Change in fair value of leasehold | |||||||
| investment property | -63 010 | ||||||
| Finance income | 2 603 | ||||||
| Finance expense | -47 659 | ||||||
| Profit before tax | 145 821 |
No customer exceeds 10 percent of the revenues. *Adjustment to extract segment reporting according to IAS 17 to include IFRS 16 impacts
The following is an analysis of the Group's revenue for the period:
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Rental income from self-storage services* | 320 244 | 272 475 |
| Revenue from retail sales | 4 041 | 4 064 |
| Agent revenue from insurance services | 8 040 | 7 514 |
| Other revenue** | 13 750 | 9 295 |
| Total revenue | 346 075 | 293 348 |
| Total revenue | 346 075 | 293 348 |
|---|---|---|
| Denmark | 40 355 | 39 228 |
| Sweden | 38 707 | 37 477 |
| Norway | 267 013 | 216 643 |
The geographical allocation is based on the location of the business operations.
Total revenue under IFRS 15 is NOK 25.8 million (2020: NOK 20.9 million), and the company has only immaterial contract assets and liabilities. Lease contracts on self-storage are short-term and can be terminated on short notice.
*Accounted for under the leasing standard
**Mainly rental income from segments other than self-storage
(Amounts in NOK 1 000)
Investment property is measured at fair value. Gains and losses arising from a change in the fair value of investment property are included in profit or loss in the period in which they arise. The Company's valuation process is based on valuations performed by an independent external party, supplemented by internal analysis and assessments. The valuations are reviewed on a quarterly basis.
Properties are valued by discounting future expected cash flows. Both contractual and expected future cash flows are included in the calculations. Fair value assessments depend largely on assumptions related to market rent, discount rates and inflation. Market rent is based on individual assessments for each property.
Lease payments are based on contracts between the real estate company and the operating companies. Property-related expenses relating to investment properties are recognised in profit or loss. The Group had two significant contractual obligations for construction contracts related to investment properties at year-end 2021 and three at year-end 2020 with upcoming liabilities. The significant contractual obligations at year-end 2021 are related to one steel building at Alver, Norway, with Borga Stålbygg amounting to approximately NOK 5.2 million and one elevator project with Betongarbeid amounting to approximately NOK 3.2 million (all amounts exclusive of VAT). The significant contractual obligations at year-end 2020 are related to the Group's three greenfield development projects. The contract at Breivollveien 25 with AF Gruppen amounts to approximately NOK 70 million, the contract at John Aaes vei with Metallbygg amounts to NOK 14 million and the contract at Bjørnerudveien 10 with Borga amounts to NOK 9 million (all amounts exclusive of VAT). In addition, the Group continuously has ongoing smaller development projects related to conversion and expansion projects.
Changes in the carrying amount of investment property are specified in the table below.
| Leasehold investment property |
Freehold investment property |
Total | |
|---|---|---|---|
| Balance as at 31 December 2020 | 515 227 | 1 456 522 | 1 971 749 |
| Additions and disposals leasehold investment property in the year |
-14 795 | - | -14 795 |
| Value adjustment due to passage of time | -46 356 | - | -46 356 |
| Business combination (note 6) | - | 128 348 | 128 348 |
| Asset acquisition in Property segment | - | 35 493 | 35 493 |
| Company acquired as asset acquisition | - | 345 701 | 345 701 |
| Additions to existing properties | - | 139 343 | 139 343 |
| Fair value adjustments recognised in profit or loss | - | 319 996 | 319 996 |
| Other/translation differences | -9 823 | -3 035 | -12 858 |
| Balance as at 31 December 2021 | 444 253 | 2 422 368 2 866 621 | |
| Leasehold investment property |
Freehold investment property |
Total | |
| Balance as at 31 December 2019 | 489 062 | 1 074 457 1 563 519 |
| Additions and disposals leasehold property in the year | 76 302 | - | 76 302 |
|---|---|---|---|
| Value adjustment due to passage of time | -63 010 | - | -63 010 |
| Asset acquisition in Property segment | - | 51 188 | 51 188 |
| Company acquired as asset acquisition | - | 124 613 | 124 613 |
| Additions to existing properties | - | 113 335 | 113 335 |
| Fair value adjustments recognised in profit or loss | - | 92 929 | 92 929 |
| Other/translation differences | 12 873 | - | 12 873 |
| Balance as at 31 December 2020 | 515 227 | 1 456 522 | 1 971 749 |
The portfolio of freehold investment property was valued by an independent appraiser at year end 2020 and 2021. In addition to the impact of annual CPI adjustment of internal leases, the increase in fair value adjustments of freehold investment property is related to yield compression in the market and development properties completed in 2021. The majority of the properties that were valuated are properties acquired before 2020 and 2021. Leasehold property is not specified further, as the fair value relates to lease agreements, and not the property value. Total gross area includes land area not yet build. The Group has not identified any assets with risk of becoming stranded.
Changes in fair value of investment property are specified in the table below
| Determination of fair value using | |||||
|---|---|---|---|---|---|
| Observable market value for corresponding assets and liabilities (level 1) |
Other significant observable input (level 2) |
Other significant unobservable input (level 3) |
Total estimated fair value |
||
| Freehold investment property | - | - | 2 422 368 | 2 422 368 | |
| Leasehold investment property | - | - | 444 253 | 444 253 | |
| Total as at 31 December 2021 | - | - | 2 866 621 | 2 866 621 | |
| Freehold investment property | - | - | 1 456 522 | 1 456 522 | |
| Leasehold investment property | - | - | 515 227 | 515 227 | |
| Financial instruments | - | - | 24 750 | 24 750 | |
| Total as at 31 December 2020 | - | - | 1 996 499 | 1 996 499 |
Level 1: Investment property valued based on quoted prices in active markets for identical assets. Level 2: Investment property valued based on observable market information not covered by level 1. Level 3: Investment property valued based on information that is not observable under level 2.
| Total freehold investment property as at 31 December 2021 |
Number of properties |
Total gross area (m2) |
Market | value Market rent Net yield | |
|---|---|---|---|---|---|
| Oslo and Akershus | 14 | 66 236 1 265 100 | 60 318 | 4.2 % | |
| Eastern Norway except Oslo and Akershus | 29 | 60 371 | 504 800 | 30 907 | 5.3 % |
| Southern Norway | 7 | 13 928 | 174 550 | 10 192 | 5.3 % |
| Western Norway | 16 | 23 912 | 224 000 | 14 012 | 5.4 % |
| Trøndelag and Northern Norway | 8 | 9 206 | 64 800 | 4 378 | 5.9 % |
| Denmark | 6 | 24 254 | 187 511 | 14 679 | 6.9 % |
| Total | 80 | 197 907 2 420 761 | 134 486 | 4.9 % | |
| Total freehold investment property as at 31 December 2020 |
Number of properties |
Total gross area (m2) |
Market | value Market rent Net yield | |
| Oslo and Akershus | 11 | 35 795 | 679 200 | 41 133 | 4.8 % |
| Eastern Norway except Oslo and Akershus | 27 | 57 837 | 413 900 | 28 758 | 5.9 % |
| Southern Norway | 5 | 12 528 | 103 600 | 8 648 | 6.0 % |
| Western Norway | 14 | 19 003 | 152 600 | 10 613 | 6.1 % |
| Trøndelag and Northern Norway | 8 | 9 206 | 57 950 | 4 251 | 6.3 % |
| Denmark | 1 | 4 307 | 43 057 | 2 891 | 6.5 % |
Leading employees is in this regard defined as the SSG Management team. The remuneration packages are designed to attract, motivate, and retain leading employees of the necessary calibre and to reward them for enhancing value to shareholders. Total remuneration for leading employees in 2021 consists of a fixed salary and a few common fringe benefits.
A long-term incentive plan (LTIP) for senior executives and key employees with annual bonus provisions payable after three years adjusted for changes in market capitalisation of the Company's shares was established after the Annual General Meeting (AGM) in 2021. A remuneration report for 2021 will be presented at the AGM for 2022. As of 31 December 2021, no share options are outstanding or have been granted.
The Group's pension scheme satisfies the requirements of the Norwegian Act on Compulsory Occupational Pensions. Leading employees are members of the Company's pension and insurance scheme that applies to all employees. No loans or guarantees have been provided to any employees, members of the Board or their related parties.
| Name | Title | Salary and other benefits |
Pension expense | Bonus | Total remuneration |
|---|---|---|---|---|---|
| Fabian Søbak | CEO | 813 | 42 | - | 854 |
| Cecilie Hekneby | CFO | 1 874 | 108 | - | 1 982 |
| Sveinung Høyer | |||||
| Trollnes | COO | 1 268 | 96 | - | 1 363 |
| Lars Moen | CPMO | 922 | 51 | - | 973 |
| Henning Gravnås | CIO (start 1.7.2021) | 445 | 33 | - | 478 |
| Petter Løyning | CMO (start 22.11.2021) | 84 | 6 | - | 91 |
| Total | 5 405 | 336 | - | 5 741 |
| Name | Title | Salary and other benefits |
Pension expense | Bonus | Total remuneration |
|---|---|---|---|---|---|
| Fabian Søbak | CEO | 641 | 25 | - | 666 |
| Cecilie Hekneby | CFO | 1 634 | 105 | - | 1 739 |
| Sveinung Høyer | |||||
| Trollnes | COO (start 9.11.2020) | 189 | 16 | - | 205 |
| Isak Larsson | General Manager CSS (end 30.11.2020) |
1 706 | 86 | - | 1 792 |
| Lars Moen* | Real Estate Manager (start 1.12.2020) |
491 | 34 | - | 525 |
| Ole Tidemann Røine | Real Estate Manager (end 20.11.2020) |
763 | 81 | - | 844 |
| Lauras Melnikas | Growth Manager (end 31.3.2020) |
407 | 35 | - | 442 |
| Total | 5 831 | 381 | - | 6 212 |
*Includes remuneration prior to be promoted to Real Estate Manager. Lars Moen has been emplyeed as Project Manager in SSG ASA since 1.5.2020.
| (Amounts in NOK 1 000) | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|---|---|---|
| Salaries and wages | -36 658 | -32 781 |
| Social security tax | -5 061 | -4 772 |
| Pension expense | -1 755 | -1 729 |
| Other | - 641 | - 927 |
| Total salary and other employee benefits | -44 115 | -40 209 |
| Average number of full time equivalent employees | 62.9 | 62.1 |
The Group has a defined contribution pension scheme that complies with requirements of Norwegian occupational pension
legislation (OTP).
| Name | Title | |
|---|---|---|
| Steven Skaar | Chairman of the Board (from May 2020)* | - |
| Gustav Søbak | Boardmember and member of Audit Comittee | 200 |
| Yvonne Sandvold | Boardmember | 170 |
| Ingrid Elvira Leiser | Boardmember and Chair of Audit Comittee | 230 |
| Dominik Jochem | Chair of nomination Committee (from May 2020)* | - |
| Lasse Høydal | Nomination Committee (from May 2020) | 10 |
| Øyvind Hagelund | Nomination Committee (from May 2020) | 10 |
| Total | 620 |
*Refrains from remuneration
| Name | Title | |
|---|---|---|
| Martin Nes | Chairman of the Board (resigned January 2020) | 167 |
| Runar Vatne | Chairman of the Board (from January 2020 to May 2020)** |
183 |
| Steven Skaar | Chairman of the Board (from May 2020)* | - |
| Gustav Søbak | Boardmember and member of Audit Comittee | 150 |
| Yvonne Sandvold | Boardmember | 150 |
| Ingrid Elvira Leiser | Boardmember and Chair of Audit Comittee | 150 |
| Lars Christian Stugaard | Chair of Nomination Committee (from May 2019- May 2020) |
20 |
| Johan Henrik Krefting | Nomination Committee (from May 2019-May 2020) |
10 |
| Andreas Lorentzen | Nomination Committee (from May 2019-May 2020) |
10 |
| Total | 840 |
*Refrains from remuneration
**Prior to being elected as Chairman of the Board, mr Vatne was a Board member
74
Fees to auditors (exclusive of VAT) for the year ended 31 December are as follows:
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Audit fee | -1 397 | -1 292 |
| Other attestation services | - 150 | - 83 |
| Tax compliance services | - | - 51 |
| Total fee to auditor | -1 547 | -1 426 |
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Interest income and other financial income | 1 013 | 1 493 |
| Gain from transactions in foreign currency | 138 | 152 |
| Unrealised gain from transactions in foreign currency |
18 944 | 923 |
| Positive change in fair value of financial in struments* |
16 178 | 35 |
| Total finance income | 36 273 | 2 603 |
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Interest expense on borrowings | -21 480 | -8 920 |
| Interest expense on lease liabilities | -18 527 | -20 666 |
| Other interests, fees and charges | -5 674 | -2 448 |
| Loss from transactions in foregin currency Unrealised loss from transactions in foregin |
- 477 | - 261 |
| currency | -9 199 | -13 765 |
| Negative change in fair value of financial instruments* |
- | -1 599 |
| Total finance expense | -55 357 | -47 659 |
* Change in value of interest rate swaps
All finance income and expense related to financial assets and financial liabilities measured at amortised cost, except interest rate swaps measured at fair value through profit or loss. Unrealised gain and loss from transactions in foreign currency were mainly impacted by the fluctuations in exchange rate on lease liabilities in SEK and DKK.
The tax benefit/(expense) is calculated based on income before tax and consists of current tax and deferred tax.
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Deferred tax expense | -80 811 | -20 657 |
| Current tax expense | -11 204 | -12 196 |
| Income tax expense | -92 015 | -32 853 |
| Income tax payable (balance sheet) | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
| Income tax payable | 10 478 | 11 994 |
| Effective Tax Rate |
The difference between income tax calculated at the applicable income tax rate and the income tax exepense attributable to loss before income tax was as follows:
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Profit/(loss) before income tax | 440 616 | 145 821 |
| Statutory income tax rate | 22% | 22% |
| Expected income tax expense/(benefit) | -96 936 | -32 081 |
| Tax effect non deductible expenses (benefits) | 5 439 | - 528 |
| Foreign operations with tax rates other than | ||
| Norwegian tax rate | 32 | 27 |
| Change in deferred tax not recognised | - 552 | -2 459 |
| Correction previous years' taxes | 1 | 2 189 |
| Income tax expense/income for the year | -92 015 | -32 853 |
| Effective tax rate | -21% | -23% |
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Investment PP&E | -211 481 | -129 261 |
| Leases | 9 913 | 8 288 |
| Receivables | 304 | 36 |
| Tax losses carried forward | 3 862 | - |
| Deferred income | - | - |
| Gain/loss account | 309 | 236 |
| Other differences | -4 454 | 268 |
| Deferred tax assets, not recognised | 4 892 | 5 809 |
Deferred tax has been calculated using a tax rate of 22%. This is the tax rates enacted as at 31 December 2021 and 31 December 2020.
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|---|---|
| 91 | |
| 91 | - |
| -196 745 | -114 624 |
| -196 654 | -114 624 |
City Self-Storage Sweden has lower nominal tax rate (20.6%) than the nominal tax rate for Norway (22%).
With effect from 1 January 2021, the corporate income tax in Sweden changed from 21.4% to 20.6%.
Tax losses carried forward in selected countries expire as follows:
| Norway | Sweden | Denmark | Total | |
|---|---|---|---|---|
| Not time limited | - | - | 74 565 | 74 565 |
| Total tax losses carried forward | - | - | 74 565 | 74 565 |
| Of which not recognised as deferred tax assets | - | - | 17 554 | 17 554 |
Deferred tax asset are not recognised for unused tax losses carried forward, as the Group cannot demonstrate that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised as of 2021.
The tax effects of temporary differences and tax losses carried forward at 31 December are as follows:
78
(Amounts in NOK 1 000)
| Operating and | |||
|---|---|---|---|
| Year ended 31 December 2021 | office equipment | Leased assets | Total |
| Cost at 1 January 2021 | 179 179 | 7 878 | 187 057 |
| Acquisitions through business combinations | 9 369 | - | 9 369 |
| Additions in the year | 49 182 | 64 | 49 246 |
| Disposals in the year | 1 197 | 1 671 | 2 868 |
| Translation differences | -1 259 | - | -1 259 |
| Cost at 31 Desember 2021 | 235 274 | 6 271 | 241 545 |
| Accumulated depreciation at 1 January 2021 | 62 005 | 2 575 | 64 579 |
| Depreciation in the year | 14 951 | 1 231 | 16 182 |
| Disposals in the year | 661 | 591 | 1 252 |
| Translation differences | - 580 | - | - 580 |
| Accumulated depreciation at 31 December 2021 | 75 715 | 3 215 | 78 929 |
| Net carrying amount at 31 December 2021 | 159 559 | 3 056 | 162 615 |
| Year ended 31 December 2020 | Operating and office equipment |
Equipment under finance leases |
Total |
|---|---|---|---|
| Cost at 1 January 2020 | 154 779 | 7 667 | 162 446 |
| Additions in the year | 23 191 | 211 | 23 402 |
| Disposals in the year | 149 | - | 149 |
| Translation differences | 1 358 | - | 1 358 |
| Cost at 31 Desember 2020 | 179 179 | 7 878 | 187 057 |
| Accumulated depreciation at 1 January 2020 | 48 580 | 1 271 | 49 850 |
| Depreciation in the year | 12 584 | 1 304 | 13 888 |
| Disposals in the year | 106 | - | 106 |
| Translation differences | 947 | - | 947 |
| Accumulated depreciation at 31 December 2020 | 62 005 | 2 575 | 64 579 |
| Net carrying amount at 31 December 2020 | 117 174 | 5 303 | 122 477 |
| Estimated useful life Depreciation method |
3-20 years straight-line |
Contract lifetime straight-line |
Estimated useful life on fitout is 20 years. Remaining Operating and office equipment has a useful life of 3-5 years.
Leased assets are assesed for impairment. The Group experienced limited business impact from COVID-19 in 2021 and 2020 and has not identfied any indications of impairment on leased assets due to COVID-19 or other incidents.
| Year ended 31 December 2021 | Goodwill | Software | Total |
|---|---|---|---|
| Cost at 1 January 2021 | 184 628 | 2 876 | 187 504 |
| Acquisitions through business combinations | 2 360 | - | 2 360 |
| Additions in the year | - | 275 | 275 |
| Translation differences | 342 | - | 342 |
| Cost at 31 Desember 2021 | 187 330 | 3 151 | 190 481 |
| Accumulated depreciation at 1 January 2021 | - | 1 250 | 1 250 |
| Depreciation in the year | - | 681 | 681 |
| Accumulated depreciation at 31 December 2021 | - | 1 931 | 1 931 |
| Net carrying amount at 31 December 2021 | 187 330 | 1 220 | 188 550 |
| Year ended 31 December 2020 | Goodwill | Software | Total |
| Cost at 1 January 2020 | 184 828 | 2 501 | 187 329 |
| Additions in the year | - | 375 | 375 |
| Translation differences | - 200 | - | - 200 |
| Cost at 31 Desember 2020 | 184 628 | 2 876 | 187 504 |
| Accumulated depreciation at 1 January 2020 | - | 662 | 662 |
| Depreciation in the year | - | 588 | 588 |
| Accumulated depreciation at 31 December 2020 | - | 1 250 | 1 250 |
| Net carrying amount at 31 December 2020 |
Expenses related to the purchase of new software are capitalised as an intangible asset if these costs are not part of the original hardware costs. Software is depreciated over 3 years.
Expenses incurred due to service or maintenance are expensed unless the changes in the software increase the future economic benefits of the software.
Goodwill originating from the business combination is primarily related to anticipated synergies from on-going operations and the benefit of integrating the entire business into the Group.
The Group experienced limited business impact from COVID-19 in 2021 and has not identified any indications of impairment on goodwill due to COVID-19. No impairment has been recognised subsequent to the business combinations.
The Group tests goodwill for impairment annually, or more often if internal or external indications of a loss in value exists. The goodwill in the Group is recognised and tested within the operating segments City Self-Storage and OK Minilager, being the relevant group of Cash Generating Units (CGU). The recoverable amount for these operating segments is determined using the value in use approach. Budgets (before tax) for the next year are utilised as the basis for estimating future cash flows and a pre-tax discount rate of 6.7 percent applied (WACC). Management's assessment is that goodwill would not suffer an impairment loss given a reasonable change in the key variables utilised in calculating the value in use for the relevant cash generating units.
The recoverable amount of each segment was determined based on the following estimates:
| CSS | OKM | |
|---|---|---|
| Goodwill | 165 571 | 21 759 |
| Deferred tax | -53 638 | -6 418 |
| Goodwill for impairment testing | 111 933 | 15 341 |
| Cash Generating Units | ||
| Sensitivity analysis 2021 | CSS | OKM |
| Pre-tax discount rate | 6.7 % | 6.7 % |
| Discount rate level before possible impairment of goodwill | 8.5 % | 38.0 % |
Inventories comprise finished goods of NOK 1.9 million as at 31 December 2021 (2020: NOK 1.6 million) and include storage supplies for sale to customers.
No impairment charges that reduce the carrying value of inventories have been recognised during the period nor historically.
Inventories sold during 2021 have been expensed in profit or loss.
Details of the Group's subsidiaries at the end of the reporting period are as follows
| Name of subsidiary | Principal activity |
Acquisition date |
Parent company |
31 Dec 2021 31 Dec 2020 | |
|---|---|---|---|---|---|
| City Self-Storage A/S (Denmark) Self-storage | 28 Sep 2016 | Self Storage Group ASA | 100% | 100% | |
| City Self-Storage Norge AS | Self-storage | 28 Sep 2016 | Self Storage Group ASA | 100% | 100% |
| City Self-Storage Sverige AB | Self-storage | 28 Sep 2016 | Self Storage Group ASA | 100% | 100% |
| OK Minilager AS | Self-storage | Self Storage Group ASA | 100% | 100% | |
| OK Property AS | Real estate | 31 Jan 2017 | Self Storage Group ASA | 100% | 100% |
| Breivollveien 25C AS | Real estate | 10 April 2019 OK Property AS | 100% | 100% | |
| Fellesgården AS | Real estate | 30 Aug 2019 | OK Property AS | * | 100% |
| Higil Invest AS | Real estate | 9 June 2020 | OK Property AS | * | 100% |
| Sneveien 13 AS | Real estate | 5 July 2020 | OK Property AS | * | 100% |
| Pindsleveien 8C AS | Real estate | 4 Nov 2020 | OK Property AS | * | 100% |
| Ingeniør Lynne AS | Real estate | 1 Dec 2020 | OK Property AS | * | 100% |
| AS Adamstuen Garasjer | Real estate | 1 March 2021 OK Property AS | 100% | ||
| Dit Pulterkammer Holding A/S | Self-storage | 14 April 2021 | City Self-Storage A/S (Denmark) Dit Pulterkammer Hold |
100% | |
| Dit Pulterkammer A/S | Self-storage | 14 April 2021 | ing A/S | 100% | |
| GoWork Billingstad AS | Real estate | 15 July 2021 | OK Property AS | 100% | |
| Vinkelhuset IV AS | Real estate | 20 Aug 2021 | OK Property AS | 100% | |
| Mo2 Eiendom AS | Real estate | 1 Oct 2021 | OK Property AS | 100% |
* Fellesgården AS, Higil Invest AS, Sneveien 13 AS, Pindsleveien 8C AS and Ingeniør Lynne AS were merged with OK Property AS in 2021
| (Amounts in NOK 1 000) | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|---|---|---|
| Trade receivables | 18 996 | 16 235 |
| Allowances for bad debt provisions (analysed below) | -1 856 | - 606 |
| Total trade receivables | 17 140 | 15 629 |
| Other receivables | - | - |
| Total trade and other receivables | 17 140 | 15 629 |
The above total represents the Group's maximum exposure to credit risk on trade and other receivables at the reporting date.
| Specification of the age distri bution of trade receivables: |
Trade receivables |
Expected credit loss rate |
Allowance for bad debt |
Trade receivables net of allowance |
|---|---|---|---|---|
| Not past due on the reporting date | 13 553 | 0% | - | 13 553 |
| Past due 0-30 days | 2 472 | 0% | - | 2 472 |
| Past due 31-60 days | 980 | 25% | - 245 | 735 |
| Past due 61-90 days | 444 | 55% | - 245 | 199 |
| Past due over 90 days | 1 548 | 88% | -1 366 | 182 |
| Carrying amount: | 18 996 | -1 856 | 17 140 |
| Specification of the age distri bution of trade receivables: |
Trade receivables |
Expected credit loss rate |
Allowance for bad debt |
Trade receivables net of allowance |
|---|---|---|---|---|
| Not past due on the reporting date | 12 833 | 0% | - | 12 833 |
| Past due 0-30 days | 1 894 | 0% | - | 1 894 |
| Past due 31-60 days | 673 | 19% | - 129 | 544 |
| Past due 61-90 days | 115 | 50% | - 57 | 58 |
| Past due over 90 days | 720 | 58% | - 419 | 301 |
| Carrying amount: | 16 235 | - 606 | 15 629 |
63 percent of Trade and other receivables at 31 December 2021 are in NOK (2020: 60 percent). Remaining amounts are in DKK and SEK. Due to the historical low levels of credit losses, no allowance for bad debt are made for trade receivables not past due date. The Group experienced limited business impact from COVID-19 in 2020 and 2021.
| (Amounts in NOK 1 000) | For the year ended 31 December 2020 |
For the year ended 31 December 2020 |
|---|---|---|
| Cash | 113 | 115 |
| Employee withholding tax | 1 231 | 1 101 |
| Bank deposits | 213 402 | 245 588 |
| Total cash and cash equivalents | 214 746 | 246 804 |
The share capital of NOK 9 467 858 consisted of 94 678 584 shares, each with a nominal value of NOK 0.10 at the end of 2021. All shares carry equal rights.
| (Amounts in NOK) | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|---|---|---|
| Ordinary shares at beginning of period | 84 328 584 | 82 617 226 |
| Issue of ordinary shares from cash contribution | 10 350 000 | 1 711 358 |
| Ordinary shares at 31 December | 94 678 584 | 84 328 584 |
| Shareholder | Country | Number of shares Ownership percentage | |
|---|---|---|---|
| UBS Switzerland AG1,5 | Switzerland | 24 557 078 | 25.9 % |
| Fabian Holding AS5 | Norway | 9 565 000 | 10.1 % |
| GSS Invest AS5 | Norway | 6 565 000 | 6.9 % |
| VERDIPAPIRFONDET ODIN EIENDOM | Norway | 6 348 113 | 6.7 % |
| J.P. MORGAN BANK LUXEMBOURG S.A. | Luxembourg | 4 581 795 | 4.8 % |
| J.P. Morgan Securities LLC | United States | 4 123 214 | 4.4 % |
| SKAGEN M2 VERDIPAPIRFOND | Norway | 3 655 790 | 3.9 % |
| FIRST RISK CAPITAL AS | Norway | 2 600 000 | 2.7 % |
| HSBC Bank Plc | United Kingdom | 2 488 255 | 2.6 % |
| SOLE ACTIVE AS | Norway | 2 402 048 | 2.5 % |
| BNP Paribas Securities Services | France | 2 282 143 | 2.4 % |
| Danske Invest Norge Vekst | Norway | 1 843 253 | 1.9 % |
| VERDIPAPIRFONDET HOLBERG NORGE | Norway | 1 700 000 | 1.8 % |
| BNP Paribas Securities Services | France | 1 459 000 | 1.5 % |
| RBC INVESTOR SERVICES TRUST | Ireland | 1 386 183 | 1.5 % |
| MUSTAD INDUSTRIER AS | Norway | 1 249 064 | 1.3 % |
| Citibank, N.A. | Ireland | 1 159 303 | 1.2 % |
| J.P. MORGAN BANK LUXEMBOURG S.A. | Luxembourg | 1 090 000 | 1.2 % |
| Brown Brothers Harriman & Co. | United States | 1 016 072 | 1.1 % |
| State Street Bank and Trust Comp | United States | 946 470 | 1.0 % |
| Other | 13 660 803 | 14.4 % | |
| Sum | 94 678 584 | 100% |
| Title | Amount of shares Ownership percentage | ||
|---|---|---|---|
| Board of Directors | |||
| Steven Skaar2 | Chairman of the Board | 24 557 078 | 25.9 % |
| Gustav Søbak (GSS Invest AS) | Board member | 6 565 000 | 6.9 % |
| Carl August Ameln (First Risk Capital AS) | Board member | 2 600 000 | 2.7 % |
| Ingrid Leisner3 (Duo Jag AS) | Board member | 10 390 | 0.0 % |
| Executive Management | |||
| Fabian Søbak (Fabian Holding AS) | Chief Executive Officer | 9 565 000 | 10.1 % |
| Cecilie Hekneby4 | Chief Financial Officer | 688 843 | 0.7 % |
| Sveinung Høyer-Trollnes | Chief Operating Officer | 17 123 | 0.0 % |
| Lars Moen5 | Property Manager | 13 500 | 0.0 % |
1 UBS Switzerland AG is a nominee account for Alta Lux Holdco S.a.r.l/Centerbridge Partners
2Steven Skaar is representing Alta Lux Holdco S.a.r.l/Centerbridge Partners who owns 25.9% of the shares in Self Storage Group
3 Ingrid Leisner and close relatives owns 100% of the shares in Duo Jag AS
4Cecilie Hekneby and close relatives
5 Changes in owned shares after the reporting period is disclosed in note 28
Expenses related to issuance of shares amounted to respectively NOK 8.1 million in 2021 and NOK 0.1 million in 2020.
At the Annual General Meeting in 2021 the Board of Directors was authorised to increase the share capital with up to NOK 4 216 429.20 through one or several share capital increases. The authorisation may be used to provide the Company with financial flexibility, including in connection with investments, merger and acquisitions. The Board's authorisation is valid until the Annual General Meeting in May 2022.
(Amounts in NOK)
Earnings per share
| For the twelve months ended 31 December 2021 |
For the twelve months ended 31 December 2020 |
||||
|---|---|---|---|---|---|
| Profit (loss) for the year | 348 601 000 | 112 968 000 | |||
| Weighted average number of outstanding shares during the period (basic) | 87 986 529 | 84 328 584 | |||
| Weighted average number of outstanding shares during the period (diluted) | 87 986 529 | 84 328 584 | |||
| Earnings (loss) per share - basic in NOK | 3.96 | 1.34 | |||
| Earnings (loss) per share - diluted in NOK | 3.96 | 1.34 | |||
| Changes in shareholders' equity | |||||
| Date | Number of shares issued |
Total number of shares |
Total share capital |
Value per share |
|
| Ordinary shares at 31 December 2021 | 94 678 584 | 9 467 858 | 0.10 | ||
| Issue of ordinary shares from Private Place ment |
8/24/2021 | 10 350 000 | 94 678 584 | 9 467 858 | 0.10 |
| Ordinary shares at 31 December 2020 | 84 328 584 | 8 432 858 | 0.10 | ||
| Issue of ordinary shares as settlement to the selling shareholder of Ulven P28 AS |
2/12/2020 | 1 711 358 | 84 328 584 | 8 432 858 | 0.10 |
| Ordinary shares at 31 December 2019 | 82 617 226 | 8 261 723 | 0.10 |
(Amounts in NOK 1 000)
| As at 31 December 2021 | Amortized cost |
Fair value through profit or loss |
Other financial liabilities measured at amortized cost |
Total |
|---|---|---|---|---|
| Current financial assets | ||||
| Financial instruments | - | 14 160 | - | 14 160 |
| Trade and other receivables | 17 140 | - | - | 17 140 |
| Cash and bank deposits | 214 746 | - | - | 214 746 |
| Total financial assets | 231 886 | 14 160 | - | 246 046 |
| Non-current financial liabilities | ||||
| Long term debt to financial institutions | - | - | 892 626 | 892 626 |
| Long term lease liabilities | - | - | 422 479 | 422 479 |
| Other financial liabilities | - | 320 | - | 320 |
| Current liabilities | ||||
| Short term interest-bearing debt | - | - | 51 644 | 51 644 |
| Short term lease liabilities | - | - | 46 192 | 46 192 |
| Trade and other payables | - | - | 12 804 | 12 804 |
| Other current liabilities | - | - | 47 533 | 47 533 |
| Total financial liabilities | - | 320 | 1 473 278 | 1 473 598 |
| As at 31 December 2020 | Amortized cost |
Fair value through profit or loss |
Other financial liabilities measured at amortized cost |
Total |
| Current financial assets | ||||
| Financial instruments* Trade and other receivables |
- 15 629 |
24 750 - |
- - |
24 750 15 629 |
| Cash and bank deposits | 246 804 | - | - | 246 804 |
| Total financial assets | 262 433 | 24 750 | - | 287 183 |
| Non-current financial liabilities | ||||
| Long term debt to financial institutions | - | - | 519 429 | 519 429 |
| Long term lease liabilities | - | - | 487 887 | |
| Other financial liabilities | - | 2 018 | - | 2 018 |
| Current liabilities | ||||
| Short term interest-bearing debt | - | - | 153 699 | 153 699 |
| Short term lease liabilities | - | - | 49 216 | 49 216 |
| Trade and other payables | - | - | 15 777 | 15 777 |
| Other current liabilities | - | - | 44 065 | 44 065 |
The carrying amounts of financial assets and liabilities approximate their fair value as at 31 December 2021 and 31 December 2020 respectively. Arrangements with financial institutions are entered into on market terms, and the carrying value at the reporting date has been assessed as approximating fair value.
*Option to acquire a building, which needs to be exercised by 1 July 2021, calculated based on market value for a the neighbouring property acquired by SSG in 2019. The option was executed in 2021.
(Amounts in NOK 1 000) Interest bearing liabilities are carried at amortized costs.
| For the year ended 31 December 2021 | less than 1 year |
1-2 years | 3-4 years | more than 5 year |
Total |
|---|---|---|---|---|---|
| Debt to financial institutions | 74 023 | 928 081 | - | - | 1 002 104 |
| Lease liabilities | 76 031 | 116 631 | 116 631 | 260 318 | 569 610 |
| For the year ended 31 December 2020 | less than 1 year |
more than 1 year |
Total | ||
| Debt to financial institutions * | 161 878 | 524 924 | - | - | 686 802 |
| Lease liabilities | 77 191 | 132 653 | 132 653 | 310 428 | 652 925 |
* All of the debt to financial institutions due was refinanced in February 2021.
| 2021 Currency | Maturity date | Interest rate | ||
|---|---|---|---|---|
| Handelsbanken and Danske Bank | 949 812 | NOK | Feb-24 | 3 months NIBOR +1.70 % |
| Amortised borrowing cost | - 5 543 | NOK | ||
| Total bank borrowings at amortized cost | 944 270 | |||
| 2020 Currency | Maturity date | Interest rate | ||
| Handelsbanken | 26 110 | NOK | Jul-21 | 3 months NIBOR +1.45 % |
| Handelsbanken | 99 927 | NOK | Jun-22 | 3 months NIBOR +1.45 % |
| Handelsbanken | 112 681 | NOK | Aug-22 | 3 months NIBOR +1.45 % |
| Handelsbanken | 77 298 | NOK | Jan-23 | 3 months NIBOR +1.45 % |
| Handelsbanken | 97 858 | NOK | May-23 | 3 months NIBOR +1.70 % |
| Handelsbanken | 129 888 | NOK | Jul-23 | 3 months NIBOR +1.45 % |
| Handelsbanken | 130 250 | NOK | Nov-23 | 3 months NIBOR +1.45 % |
| Amortised borrowing cost | - 884 | NOK | ||
| Total bank borrowings at amortized cost | 673 128 |
On 24 February 2021, SSG signed an agreement for a new bank facility loan with Handelsbanken and Danske Bank for refinancing of all existing debt to Handelsbanken and general corporate purposes. The agreement amounts to NOK 985 million in term loan and NOK 245 million in revolving credit facility, both with maturity 3+1+1 years, and interest rate is 3 months Nibor + 1.70%.
All covenants for the new bank facility loan are to be measured and reported on a quarterly basis. There are both financial and non-financial covenants. As of 31 December 2021, the Group is in compliance with all loan covenants, and also expects to comply with covenants throughout 2022.
The financial covenants for the new bank facility loan are:
In the year 2021 SSG entered into two additional five-year interest rate swaps. There are no margin calls related to the interest rate swaps.
Interest rate swaps are recorded at fair value through profit and loss. A gain of NOK 3.7 million for the full year 2021 and a loss of NOK 1.6 million for the full year 2020 related to hedging of interests is included in the finance income/expense.
Trade and other payables are due within three months.
| Fixed interest rate agreements | Amount (MNOK) | Maturity date | Interest rate (%) |
|---|---|---|---|
| Handelsbanken | 150 000 | Mar-25 | 1.080 |
| Handelsbanken | 150 000 | Apr-25 | 0.785 |
| Handelsbanken | 300 000 | Mar-26 | 1.345 |
| Handelsbanken | 150 000 | Mar-26 | 1.420 |
| Changes in liabilities arising from financing activities | Interest bearing borrowings |
Lease liabili ties |
Non-interest bearing borrowings |
Total borrowings |
|---|---|---|---|---|
| Opening balance 1 January 2021 | 673 128 | 537 103 | - | 1 210 231 |
| Cash flow: | ||||
| Proceeds from borrowings | 1 084 268 | - | - | 1 084 268 |
| Interests paid | - 25 444 | - 18 527 | - | - 43 971 |
| Repayment of borrowings /Payments of lease | - 809 162 | - 43 296 | - | - 852 458 |
| Cash flows - total | 249 662 - 61 823 | - | 187 839 | |
| Non-cash changes: | ||||
| Additions and disposals of leases for leasehold investment | ||||
| property in the year | - | - 14 795 | - | - 14 795 |
| Additions and disposals of other leases in the year | - | 65 | - | 65 |
| New leases | - | - 14 730 | - | - 14 730 |
| Interest expenses | 21 480 | 18 527 | - | 40 007 |
| Other movements | 21 480 | 18 527 | - | 40 007 |
| Other/translation differences | - | - 10 406 | - | - 10 406 |
| Foreign exchange movements | - | - 10 406 | - | - 10 406 |
| Closing balance 31 December 2021 | 944 270 | 468 671 | - | 1 412 941 |
| Changes in liabilities arising from financing activities | Interest bearing borrowings |
Lease liabili ties |
Non-interest bearing borrowings |
Total borrowings |
| Opening balance 1 January 2020 | 342 280 502 832 | - | 845 112 | |
| Cash flow: | ||||
| Proceeds from borrowings Interests paid |
441 000 - 10 572 |
- - 20 666 |
- - |
441 000 - 31 238 |
| Repayment of borrowings /Payments of lease | - 110 158 | - 55 069 | - | - 165 227 |
| Cash flows - total | 320 270 | - 75 735 | - | 244 535 |
| Non-cash changes: | ||||
| Additions and disposals of leases for leasehold investment | ||||
| property in the year | - | 77 436 | - | 77 436 |
| Additions and disposals of other leases in the year | - | 161 | - | 161 |
| New leases | - | 77 597 | - | 77 597 |
| Interest expenses | 11 461 | 20 666 | - | 32 127 |
| Other movements | 11 461 | 20 666 | - | 32 127 |
| Other/translation differences | - 883 | 11 743 | - | 10 860 |
| Foreign exchange movements | - 883 | 11 743 | - | 10 860 |
(Amounts in NOK 1 000)
The Group as a lessee leases certain leasehold properties that are classified as leasehold investment property. These leases have lease terms between 3 months and 20 years. The Group applies the short-term lease recognition exemptions for leases with lease term below one year. All leased properties classified as leasehold investment property are used to provide self-storage services to customers throughout Norway, Sweden and Denmark.
The Group has one lease contract for use of office space, with a lease term of five years. The Group has the option to lease the assets for an additional term of three years. The lease is classified as property, plant and equipment. Property, plant and equipment also include leased trailers and containers with average lease terms of three years. The Group's lease liabilities are secured by the lessors' title to the leased assets.
The Group experienced limited business impact from COVID-19 in 2021 and 2020 and has not identified any indications of impairment on leased assets due to COVID-19 or other incidents. The Group has not received any rent reductions on leased properties due to COVID-19 in 2021 or 2020.
(Amounts in NOK 1 000)
| As at 31 December 2021 As at 31 December 2020 | ||
|---|---|---|
| Liability secured by assets pledged: | 949 812 | 673 028 |
| Carrying value of assets pledged as security: | ||
| Trade receivables | 17 140 | 15 629 |
| Freehold investment properties and other assets | 2 584 983 | 1 544 223 |
| Total | 2 602 123 | 1 559 852 |
Changes in recognised leases during the period:
| Lease liabilities | Leased assets | ||
|---|---|---|---|
| Leasehold investment property |
Other leases | ||
| Opening balance 1 January 2021 | 537 103 | 515 227 | 5 303 |
| Additions and disposals of leases for leasehold investment prop erty in the year |
- 14 795 | - 14 795 | - |
| Additions and disposals of other leases in the year | 65 | - | - 1 016 |
| Payments of lease | - 43 296 | - | - |
| Change in fair value of leasehold investment property | - | - 46 356 | - |
| Depreciation | - | - | - 1 231 |
| Other/translation differences | - 10 406 | - 9 823 | - |
| Closing balance 31 December 2021 | 468 671 | 444 253 | 3 056 |
In January 2021 an agreement to acquire the leasehold property at Adamstuen in Oslo was made and the purchase agreement was included in the value of leasehold investment property. On 1 March 2021 the agreement was completed. In 2020 an agreement to acquire the leasehold property at Hvidovre in Copenhagen was made and the purchase agreement was included in the value of leasehold investment property. On 1 December 2020 the acquisition was completed.
The Group had total cash outflows for leases of NOK 75.1 million in 2021 (2020: NOK 75.7 million). The future cash outflows relating to leases that have not yet commenced are disclosed in note 23.
The Group has certain lease contracts related to leasehold investment property that include extension options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group's business needs. Management exercises significant judgement in determining whether these extension options are reasonably certain to be exercised (see note 4). Options to extend reasonably certain to commit to, but not started, amounts to NOK 158.5 million as of 31 December 2021 (NOK 128.1 million as of 31 December 2020), with periods ranging between one and ten years. Options to extend not reasonably certain to commit to, amounts to NOK 38.0 million as of 31 December 2021 (54.3 million as of 31 December 2020), with periods ranging between one and ten years.
Two options to extend reasonably certain to commit to, but not started, are included in the balance sheet in 2021 as they during 2021 are assessed reasonably certain to be exercised.
Sensitivity analyses of leases shows that the effect on the lease liabilities if the discount rate increases with 1% is NOK 20.6 million in reduced lease liability (2020: NOK 24.3 million), and NOK 22.3 million in increased lease liability (2020: NOK 26.3 million) if discount rate decreases with 1%.
The Group has not committed to any future leases as of 31 December 2021.
| Lease liabilities | Leased assets | ||
|---|---|---|---|
| Leasehold investment |
property Other leases | ||
| Opening balance 1 January 2020 after implementation im pact |
502 832 | 489 062 | 6 396 |
|---|---|---|---|
| Additions and disposals of leases for leasehold investment property in the year |
77 436 | 76 302 | - |
| Additions and disposals of other leases in the year | 161 | - | 211 |
| Payments of lease | - 55 069 | - | - |
| Change in fair value of leasehold investment property | - | - 63 010 | - |
| Depreciation | - | - | - 1 304 |
| Other/translation differences | 11 743 | 12 873 | - |
| Closing balance 31 December 2020 | 537 103 | 515 227 | 5 303 |
| 2021 | 2020 | |
|---|---|---|
| Expenses relating to short-term leases (included in lease expenses) | - 13 250 | - 9 432 |
| Change in fair value of leasehold investment property | - 46 356 | - 63 010 |
| Depreciation expense of leased assets classefied as property, plant and equipment | - 1 231 | - 1 304 |
| Interest expense on lease liabilities (included in finance expenses) | - 18 527 | - 20 666 |
| Total amount recognised in profit or loss | - 79 364 | - 94 412 |
92
(Amounts in NOK 1 000)
There have not been any transactions between the Group and other related parties in 2021 or 2020.
(Amounts in NOK 1 000)
| As at 31 December 2021 | As at 31 December 2020 | |
|---|---|---|
| Prepayments from customers | 33 873 | 31 544 |
| Payables to employees | 470 | 169 |
| Other current liabilities | 13 190 | 12 352 |
| 47 533 | 44 065 |
All other liabilities are classified as current liabilities.
(Amounts in NOK 1 000)
| Note | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|---|
| Other revenue | 12 | 19 198 | 16 677 |
| Salary and other employee benefits | 2 | - 22 686 | - 18 958 |
| Depreciations | 14, 15 | - 906 | - 759 |
| Other operating expenses | 11 | - 2 834 | - 1 372 |
| Operating profit | - 7 228 | - 4 412 | |
| Finance income | 13 | 89 874 | 19 854 |
| Finance expense | 13 | - 35 760 | - 15 121 |
| Net financials | 54 114 | 4 733 | |
| Profit before tax | 46 886 | 321 | |
| Income tax expense | 3 | - 6 985 | - 250 |
| Net profit for for the year | 39 901 | 71 | |
| Proposed profit appropriation | |||
| Retained earnings | 39 901 | 71 | |
| Total appropriation | 39 901 | 71 |
Fabian Søbak CEO
Carl August Ameln Board member
Oslo, April 28th, 2022
Annual Report 2021
(Amounts in NOK 1 000)
| sign | sign | sign |
|---|---|---|
| Steven Skaar Chairman |
Gustav Sigmund Søbak Board member |
|
| sign | sign | sign |
| Ingrid Elvira Leisner Board member |
Yvonne Litsheim Sandvold Board member |
|
| Note | 31 December 2021 | 31 December 2020 | |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 14 | 1 220 | 1 626 |
| Deferred tax assets | 3 | - | 281 |
| Investment in subsidiaries | 4 | 1 481 058 | 881 058 |
| Loans to group companies | 5 | 537 184 | 492 799 |
| Property, plant and equipment | 15 | 3 448 | 920 |
| Total non-current assets | 2 022 910 | 1 376 684 | |
| Current assets | |||
| Trade and other receivables | 604 | 1 222 | |
| Receivables from group companies | 5 | 76 901 | 10 797 |
| Other current assets | - | - | |
| Cash and bank deposits | 7 | 60 398 | 158 025 |
| Total current assets | 137 903 | 170 044 | |
| TOTAL ASSETS | 2 160 813 | 1 546 728 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Issued share capital | 8, 10 | 9 467 | 8 432 |
| Share premium | 10 | 1 123 921 | 832 858 |
| Retained earnings | 10 | 60 284 | 20 383 |
| Total equity | 1 193 672 | 861 673 | |
| Liabilities | |||
| Non-current liabilities | |||
| Non-current interest-bearing debt | 9, 16 | 898 168 | 520 313 |
| Non-current debt to group companies | 9 | 5 219 | 5 096 |
| Deferred tax liabilities | 3 | 54 | - |
| Other non-current liabilities | 320 | 1 599 | |
| Total non-current liabilities | 903 761 | 527 008 | |
| Current liabilities | |||
| Current interest-bearing debt | 16 | 51 644 | 153 699 |
| Trade and other payables | 864 | 559 | |
| Income tax payable | 3 | 6 650 | 618 |
| Other taxes and withholdings | 1 371 | 1 343 | |
| Other current liabilities | 2 850 | 1 828 | |
| Total current liabilities | 63 379 | 158 047 | |
| Total liabilities | 967 140 | 685 055 | |
| TOTAL EQUITY AND LIABILITIES | 2 160 812 | 1 546 728 |
Parent company statement of cash flows
| (Amounts in NOK 1 000) | Note | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit before tax | 46 886 | 321 | |
| Income tax paid | 3 | - 618 | - |
| Net expensed interests and fees on borrowings and leases | 20 438 | 13 060 | |
| Depreciation | 14, 15 | 906 | 759 |
| Unrealised gain/loss in foreign currency | 13 | 4 422 | 0 |
| Group contribution and dividend from subsidiaries | 5, 13 | - 71 087 | - 8 000 |
| Change in trade and other receivables | - | - 849 | |
| Change in receivables from group companies | 834 | - 1 485 | |
| Change in trade and other payables | 306 | - 230 | |
| Change in other current assets | 618 | - | |
| Change in other current liabilities | - 10 871 | - 490 | |
| Net cash flows from operating activities | - 8 166 | 3 086 | |
| Cash flows from investing activities | |||
| Payments for property, plant and equipment and intangible assets |
- 3 028 | - 686 | |
| Net cash flow of loan to subsidiaries | - 644 262 | - 192 339 | |
| Net cash outflow on acquisition of subsidiaries | - | - 99 | |
| Net cash flows from investing activities | - 647 290 | - 193 124 | |
| Cash flows from financing activities | |||
| Proceeds from issue of equity instruments | 291 999 | - | |
| Proceeds from borrowings | 16 | 1 084 268 | 441 000 |
| Group contribution and dividend from subsidiaries | 16 168 | 14 287 | |
| Repayment of borrowings | 16 | - 809 162 | - 110 158 |
| Interest paid | - 25 444 | - 10 572 | |
| Net cash flows from financing activities | 557 829 | 334 557 | |
| Net change in cash and cash equivalents | - 97 627 | 144 519 | |
| Cash and cash equivalents at beginning of the period | 158 025 | 13 506 | |
| Cash and equivalents at end of period | 7 | 60 398 | 158 025 |
The financial statements of Self Storage Group ASA have been prepared in accordance to the Norwegian Accounting Act and generally accepted accounting principles in Norway.
The management has used estimates and assumptions that have affected assets, liabilities, incomes, expenses and information on potential liabilities in accordance with generally accepted accounting principles in Norway.
Transactions in foreign currency are translated at the rate applicable on the transaction date. Monetary items in a foreign currency are translated into NOK using the exchange rate applicable on the balance sheet date. Non-monetary items that are measured at their historical price expressed in a foreign currency are translated into NOK using the exchange rate applicable on the transaction date. Non-monetary items that are measured at their fair value expressed in a foreign currency are translated at the exchange rate applicable on the balance sheet date. Changes to exchange rates are recognised in the income statement as they occur during the accounting period.
Revenues from the sale of goods are recognised in the income statement once delivery has taken place and most of the risk and return has been transferred. Revenues from the sale of services and long-term manufacturing projects are recognised in the income statement according to the project's level of completion provided the outcome of the transaction can be estimated reliably. Progress is measured as the number of hours spent compared to the total number of hours estimated. When the outcome of the transaction cannot be estimated reliably, only revenues equal to the protect costs that have been incurred will be recognised as revenue. The total estimated loss on a contract will be recognised in the income statement during the period when it is identified that a project will generate a loss.
The tax expense consists of the tax payable and changes to deferred tax. Deferred tax/tax assets are calculated on all differences between the book value and tax value of assets and liabilities. Deferred tax is calculated as 22 percent of temporary differences and the tax effect of tax losses carried forward. Deferred tax assets are recorded in the balance sheet when it is more likely than not that the tax assets will be utilised. Taxes payable and deferred taxes are recognised directly in equity to the extent that they relate to equity transactions.
Current assets and current liabilities consist of receivables and payables due within one year, and items related to the inventory cycle. Other balance sheet items are classified as fixed assets/non-current liabilities. Current assets are valued at the lower of cost and fair value. Current liabilities are recognised at nominal value. Fixed assets are valued at cost, less depreciation and impairment losses. Non-current liabilities are recognised at nominal value.
"Property, plant and equipment" is capitalised and depreciated linearly over the estimated useful life. Significant fixed assets which consist of substantial components with dissimilar economic life have been unbundled; depreciation of each component is based on the economic life of the component. Costs for maintenance are expensed as incurred, whereas costs for improving and upgrading property plant and equipment are added to the acquisition cost and depreciated with the related asset. If carrying value of a non-current asset exceeds the estimated recoverable amount, the asset is written down to the recoverable amount. The recoverable amount is the greater of the net realisable value and value in use. In assessing value in use, the discounted estimated future cash flows from the asset are discounted are used.
Subsidiaries and investments in associates are valued at cost in the company accounts. The investment is valued as cost of the shares in the subsidiary, less any impairment losses. An impairment loss is recognised if the impairment ls not considered temporary, in accordance with generally accepted accounting principles. Impairment losses are reversed if the reason for the impairment loss disappears in a later period. Dividends, group contributions and other distributions from subsidiaries are recognised in the same year as they are recognised in the financial statement of the provider. If dividends/group contribution exceed withheld profits after the acquisition date, the excess amount represents repayment of invested capital, and the distribution will be deducted from the recorded value of the acquisition in the balance sheet for the parent company.
Accounts receivable and other current receivables are recorded in the balance sheet at nominal value less provisions for doubtful accounts. Provisions for doubtful accounts are based on an individual assessment of the different receivables. For the remaining receivables, a general provision is estimated based on expected loss.
Short-term investments (stocks and shares seen as current assets) are valued at the lower of acquisition cost and fair value at the balance sheet date. Dividends and other distributions are recognised as other financial income.
The Company has a defined contribution pension in accordance with local laws. The premium paid is regarded as the pension cost for the period and classified as wage cost in the profit and loss statement.
The cash flow statement is presented using the indirect method. Cash and cash equivalents include cash, bank deposits and other short-term, highly liquid investments with maturities of three months or less.
| (Amounts in NOK 1 000) | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|---|---|---|
| Salaries and wages | - 18 555 | - 15 574 |
| Social security tax | - 2 709 | - 2 130 |
| Pension expense | - 819 | -771 |
| Other | - 603 | -483 |
| Total salary and other employee benefits | - 22 686 | - 18 958 |
| Average number of full time equivalent employees | 26.2 | 23.2 |
The Group has a defined contribution pension scheme that complies with requirements of Norwegian occupational pension legislation (OTP).
Total remuneration to key management during the year ended 31 December 2021 is as follows:
| Title | Salary and other benefits |
Pension expense |
Bonus | Total remunera tion |
|
|---|---|---|---|---|---|
| Fabian Søbak | CEO | 813 | 42 | - | 854 |
| Cecilie Hekneby | CFO | 1 874 | 108 | - | 1 982 |
| Sveinung Høyer-Trollnes COO | 1 268 | 96 | - | 1Ê363 | |
| Lars Moen | CPMO | 922 | 51 | 973 | |
| Henning Gravnås | CIO (start 1.7.2021) | 445 | 33 | - | 478 |
| Petter Løyning | CMO (start 22.11.2021) | 84 | 6 | 91 | |
| Total key management remuneration | 5 405 | 336 | - | 5 741 |
Total remuneration to key management during the year ended 31 December 2020 is as follows:
| Name | Title | Salary and other benefits |
Pension expense |
Bonus | Total remunera tion |
|---|---|---|---|---|---|
| Fabian Søbak | CEO | 641 | 25 | - | 666 |
| Cecilie Hekneby | CFO | 1 634 | 105 | - | 1Ê739 |
| Sveinung Høyer-Trollnes COO (start 9.11.2020) | 189 | 16 | - | 205 | |
| Lars Moen | Real Estate Manager (start 1.12.2020)* |
491 | 34 | 525 | |
| Ole Tidemann Røine | Real Estate Manager (end 20.11.2020) |
763 | 81 | - | 844 |
| Lauras Melnikas | Growth Manager (end 31.3.2020) |
407 | 35 | - | 442 |
| Total key management remuneration | 4 125 | 295 | - | 4 420 |
*Includes remuneration prior to be promoted to Real Estate Manager. Lars Moen has been emplyeed as Project Manager in SSG ASA since 1.5.2020.
| Name | Title | |
|---|---|---|
| Steven Skaar | Chairman of the Board (from May 2020)* | - |
| Gustav Søbak | Boardmember and member of Audit Comittee | 200 |
| Yvonne Sandvold | Boardmember | 170 |
| Ingrid Elvira Leiser | Boardmember and Chair of Audit Comittee | 230 |
| Dominik Jochem | Chair of nomination Committee (from May 2020)* | - |
| Lasse Høydal | Nomination Committee (from May 2020) | 10 |
| Øyvind Hagelund | Nomination Committee (from May 2020) | 10 |
| Total | 620 |
*Refrains from remuneration
| Name | Title | |
|---|---|---|
| Martin Nes | Chairman of the Board (resigned January 2020) | 167 |
| Runar Vatne | Chairman of the Board (from January 2020 to May 2020)** |
183 |
| Steven Skaar | Chairman of the Board (from May 2020)* | - |
| Gustav Søbak | Boardmember and member of Audit Comittee | 150 |
| Yvonne Sandvold | Boardmember | 150 |
| Ingrid Elvira Leiser | Boardmember and Chair of Audit Comittee | 150 |
| Lars Christian Stugaard | Chair of Nomination Committee (from May 2019- May 2020) |
20 |
| Johan Henrik Krefting | Nomination Committee (from May 2019-May 2020) | 10 |
| Andreas Lorentzen | Nomination Committee (from May 2019-May 2020) | 10 |
| Total | 840 |
*Refrains from remuneration
**Prior to being elected as Chairman of the Board, mr Vatne was a Board member
The tax benefit/(expense) is calculated based on income before tax and consists of current tax and deferred tax.
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Deferred tax expense | - 335 | 368 |
| Current tax expense | - 6 650 | - 618 |
| Income tax expense | - 6 985 | - 250 |
| Income tax payable (balance sheet) | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
| Income tax payable | 6 650 | 618 |
The difference between income tax calculated at the applicable income tax rate and the income tax expense attributable to loss before income tax was as follows:
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Profit/(loss) before income tax | 46 886 | 321 |
| Statutory income tax rate | 22% | 22% |
| Expected income tax expense/(benefit) | - 10 315 | - 71 |
| Tax effect non deductible expenses | 3 330 | - 177 |
| Correction previous years' taxes | - | - 2 |
| Income tax expense/income for the year | - 6 985 | - 250 |
| Effective tax rate | -15% | -78% |
The tax effects of temporary differences and tax losses carried forward at 31 December are as follows:
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Property, plant and equipment | - 54 | - 71 |
| Financial instruments | - | 352 |
| Deferred tax asset (liability) | - 54 | 281 |
Deferred tax has been calculated using a tax rate of 22 % for 2021 and 2020. This is the tax rates enacted as at 31 December 2021 and 31 December 2020.
(Amounts in NOK 1 000)
| Receivables | 2021 | 2020 |
|---|---|---|
| Loans to group companies | ||
| OK Property AS | 238 827 | 343 724 |
| Breivollveien 25C AS | 125 135 | 88 359 |
| City Self-Storage A/S (Denmark) | 173 222 | 36 683 |
| City Self-Storage Norge AS | - | 9 332 |
| Fellesgården AS* | - | 9 266 |
| Sneveien 13 AS* | - | 5 435 |
| Accounts receivable | 1 953 | 2 788 |
| Other receivables | 74 948 | 8 009 |
| Sum | 614 085 | 503 596 |
| Payables | 2021 | 2020 |
| Non-current debt to group companies | 5 219 | 5 096 |
| Other liabilities | 743 | - |
| Sum | 5 962 | 5 096 |
Interest income from loans to group companies amounts to NOK 16.5 million in 2021 (2020: NOK 10.5 million) and interest expense from loans to group companies amounts to NOK 0.1 million in 2021 (2020: NOK 0.1 million)
*Merged with OK Property AS in 2021
Details of the company's subsidiaries at the end of the reporting period are as follows:
| Name of subsidiary | Principal activity |
Acquisition date |
Book value 31 Dec 2021 |
Book value 31 Dec 2020 |
31 Dec 2021 |
31 Dec 2020 |
|---|---|---|---|---|---|---|
| City Self-Storage A/S (Den mark) |
Self-storage | 28 Sep 2016 | 4 857 | 4 857 | 100% | 100% |
| City Self-Storage Norge AS | Self-storage | 28 Sep 2016 | 153 506 | 153 506 | 100% | 100% |
| City Self-Storage Sverige AB Self-storage | 28 Sep 2016 | 2 334 | 2 334 | 100% | 100% | |
| OK Minilager AS | Self-storage | 58 863 | 58 863 | 100% | 100% | |
| OK Property | Real estate | 31 Jan 2017 | 1 261 498 | 661 498 | 100% | 100% |
(Amounts in NOK 1 000)
Balances and transactions between Self Storage Group ASA and its subsidiaries, which are related parties of Self Storage Group ASA, are not disclosed in this note. For information related to transactions with subsidiaries, see note 5 Balances with Group companies.
There have not been any transactions between the Group and other related parties in 2021 or 2020.
See also note 27 Related party transactions in Notes to the consolidated financial statements.
(Amounts in NOK 1 000)
| As at 31 December 2021 | As at 31 December 2020 | |
|---|---|---|
| Cash | - | - |
| Employee withholding tax | 883 | 666 |
| Bank deposits | 59 515 | 157 359 |
| Total cash and cash equivalents | 60 398 | 158 025 |
The share capital of NOK 9 467 858 consisted of 94 678 584 shares, each with a nominal value of NOK 0.10 at the end of 2021. All shares carry equal rights.
| (Amounts in NOK) | For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|---|---|---|
| Ordinary shares at beginning of period | 84 328 584 | 82 617 226 |
| Issue of ordinary shares from cash contribution | 10 350 000 | 1 711 358 |
| Ordinary shares at 31 December | 94 678 584 | 84 328 584 |
| Title | Amount of shares Ownership percentage | |||
|---|---|---|---|---|
| Board of Directors | ||||
| Steven Skaar2 | Chairman of the Board | 24 557 078 | 25.9 % | |
| Gustav Søbak (GSS Invest AS) | Board member | 6 565 000 | 6.9 % | |
| Carl August Ameln (First Risk Capital AS) | Board member | 2 600 000 | 2.7 % | |
| Ingrid Leisner3 (Duo Jag AS) | Board member | 10 390 | 0.0 % | |
| Executive Management | ||||
| Fabian Søbak (Fabian Holding AS) | Chief Executive Officer | 9 565 000 | 10.1 % | |
| Cecilie Hekneby4 | Chief Financial Officer | 688 843 | 0.7 % | |
| Sveinung Høyer-Trollnes | Chief Operating Officer | 17 123 | 0.0 % | |
| Lars Moen5 | Property Manager | 13 500 | 0.0 % | |
| 1 UBS Switzerland AG is a nominee account for Alta Lux Holdco S.a.r.l/Centerbridge Partners 2Steven Skaar is representing Alta Lux Holdco S.a.r.l/Centerbridge Partners who owns 25.9% of the shares in Self Storage Group 3 Ingrid Leisner and close relatives owns 100% of the shares in Duo Jag AS 4Cecilie Hekneby and close relatives 5 Changes in owned shares after the reporting period is disclosed in note 28 |
||||
| Annual Report 2021 | Annual Report 2021 |
| Shareholder | Country | Number of shares Ownership percentage | |
|---|---|---|---|
| UBS Switzerland AG1,5 | Switzerland | 24 557 078 | 25.9 % |
| Fabian Holding AS5 | Norway | 9 565 000 | 10.1 % |
| GSS Invest AS5 | Norway | 6 565 000 | 6.9 % |
| VERDIPAPIRFONDET ODIN EIENDOM | Norway | 6 348 113 | 6.7 % |
| J.P. MORGAN BANK LUXEMBOURG S.A. | Luxembourg | 4 581 795 | 4.8 % |
| J.P. Morgan Securities LLC | United States | 4 123 214 | 4.4 % |
| SKAGEN M2 VERDIPAPIRFOND | Norway | 3 655 790 | 3.9 % |
| FIRST RISK CAPITAL AS | Norway | 2 600 000 | 2.7 % |
| HSBC Bank Plc | United Kingdom | 2 488 255 | 2.6 % |
| SOLE ACTIVE AS | Norway | 2 402 048 | 2.5 % |
| BNP Paribas Securities Services | France | 2 282 143 | 2.4 % |
| Danske Invest Norge Vekst | Norway | 1 843 253 | 1.9 % |
| VERDIPAPIRFONDET HOLBERG NORGE | Norway | 1 700 000 | 1.8 % |
| BNP Paribas Securities Services | France | 1 459 000 | 1.5 % |
| RBC INVESTOR SERVICES TRUST | Ireland | 1 386 183 | 1.5 % |
| MUSTAD INDUSTRIER AS | Norway | 1 249 064 | 1.3 % |
| Citibank, N.A. | Ireland | 1 159 303 | 1.2 % |
| J.P. MORGAN BANK LUXEMBOURG S.A. | Luxembourg | 1 090 000 | 1.2 % |
| Brown Brothers Harriman & Co. | United States | 1 016 072 | 1.1 % |
| State Street Bank and Trust Comp | United States | 946 470 | 1.0 % |
| Other | 13 660 803 | 14.4 % | |
| Sum | 94 678 584 | 100% |
108 109 Annual Report 2021 Annual Report 2021
| (Amounts in NOK 1 000) | Issued | Share capital Share premium | Retained earnings |
Total equity |
|---|---|---|---|---|
| Balance at 1 January 2020 | 8 261 | 786 117 | 20 312 | 814 690 |
| Profit (loss) for the period Issue of ordinary shares, net of trans |
- | - | 71 | 71 |
| action costs | 171 | 46 741 | - | 46 912 |
| Balance at 31 December 2020 | 8 432 | 832 858 | 20 383 | 861 673 |
| Balance at 1 January 2021 | 8 432 | 832 858 | 20 383 | 861 673 |
| Profit (loss) for the period Issue of ordinary shares, net of trans |
- | - | 39 901 | 39 901 |
| action costs | 1 035 | 291 063 | - | 292 098 |
| Balance at 31 December 2021 | 9 467 | 1 123 921 | 60 284 | 1 193 672 |
| The Company has the following non-current liabilities: | 2021 | 2020 |
|---|---|---|
| Danske Bank | 449 084 | - |
| Handelsbanken | 449 084 | 520 313 |
| Non-current liabilities to subsidiaries | 5 219 | 5 096 |
| Payables to employees | 320 | - |
| Deferred tax liabilities | 54 | - |
| Non-current financial liabilities | - | 1 599 |
| Total non-current liabilities | 903 761 | 527 008 |
| The Company has the following non-current receivables: | 2021 | 2020 |
|---|---|---|
| Non-current receivables from subsidiaries | 537 184 | 492 799 |
| Total non-current receivables | 537 184 | 492 799 |
Revenue is related to management fees and centralized services to group companies.
(Amounts in NOK 1 000) Fees to auditors (exclusive of VAT) for the year ended 31 December are as follows:
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Audit fee | 526 | 461 |
| Other attestation services | 63 | 38 |
| Tax compliance services | - | - |
| Total fee to auditor | 589 | 499 |
(Amounts in NOK 1 000)
Finance income
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Group contribution | 62 919 | 8 000 |
| Dividend | 8 168 | - |
| Gain from transactions in foreign currency | 36 | 37 |
| Other finance income | 18 751 | 11 817 |
| Total finance income | 89 874 | 19 854 |
| Finance expense | ||
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
| Loss from transactions in foreign currency | - 89 | - 307 |
| For the year ended 31 December 2021 |
For the year ended 31 December 2020 |
|
|---|---|---|
| Loss from transactions in foreign currency | - 89 | - 307 |
| Unrealised loss from transactions in foreign currency | - 4 422 | - 317 |
| Interest cost | - 26 837 | - 13 060 |
| Other fees and charges | - 4 412 | - 1 437 |
| Total finance expense | - 35 760 | - 15 121 |
All finance income and expense relate to financial assets and financial liabilities measured at amortised cost. Unrealised gain and loss from transactions in foreign currency were mainly impacted by the fluctuations in exchange rate on lease liabilities in SEK and DKK.
| Year ended 31 December 2021 | Intangible assets | Total |
|---|---|---|
| Cost at 1 January 2021 | 2 876 | 2 876 |
| Additions in the year | 275 | 275 |
| Disposals in the year | - | - |
| Cost at 31 Desember 2021 | 3 151 | 3 151 |
| Accumulated depreciation at 1 January 2021 | 1 250 | 1 250 |
| Depreciation in the year | 681 | 681 |
| Accumulated depreciation at 31 December 2021 | 1 931 | 1 931 |
| Net carrying amount at 31 December 2021 | 1 220 | 1 220 |
| Year ended 31 December 2020 | Intangible assets | Total |
| Cost at 1 January 2020 | 2 501 | 2 501 |
| Additions in the year | 375 | 375 |
| Disposals in the year | - | - |
| Cost at 31 Desember 2020 | 2 876 | 2 876 |
| Accumulated depreciation at 1 January 2020 | 662 | 662 |
| Depreciation in the year | 588 | 588 |
| Accumulated depreciation at 31 December 2020 | 1 250 | 1 250 |
| Net carrying amount at 31 December 2020 | 1 626 | 1 626 |
| Estimated useful life | 3 year | |
| Depreciation method | straight-line |
(Amounts in NOK 1 000)
| Year ended 31 December 2021 | Operating and office equipment | Total |
|---|---|---|
| Cost at 1 January 2021 | 1 169 | 1Ê169 |
| Additions in the year | 2 753 | 2Ê753 |
| Disposals in the year | - | - |
| Cost at 31 Desember 2021 | 3 922 | 3Ê922 |
| Accumulated depreciation at 1 January 2021 | 249 | 249 |
| Depreciation in the year | 225 | 225 |
| Accumulated depreciation at 31 December 2021 | 474 | 474 |
| Net carrying amount at 31 December 2021 | 3 448 | 3Ê448 |
| Year ended 31 December 2020 | Operating and office equipment | Total |
| Cost at 1 January 2020 | 858 | 858 |
| Additions in the year | 311 | 311 |
| Disposals in the year | - | - |
| Cost at 31 Desember 2020 | 1Ê169 | 1Ê169 |
| Accumulated depreciation at 1 January 2020 | 78 | 78 |
| Depreciation in the year | 171 | 171 |
| Accumulated depreciation at 31 December 2020 | 249 | 249 |
| Net carrying amount at 31 December 2020 | 920 | 920 |
| Estimated useful life | 5 year | |
| Depreciation method | straight-line |
(Amounts in NOK 1 000)
Interest bearing liabilities are carried at amortized costs.
| Amounts due in | |||
|---|---|---|---|
| less than 1 year |
1-5 years | Total | |
| For the year ended 31 December 2021 | |||
| Debt to financial institutions | 74 023 | 928 081 | 1 002 104 |
| For the year ended 31 December 2020 | |||
| Debt to financial institutions* | 161 878 | 524 924 | 686 802 |
| * All of the debt to financial institutions due was refinanced in February 2021. |
| 2021 Currency | Maturity date | Interest rate | ||
|---|---|---|---|---|
| Handelsbanken and Danske Bank | 949 812 | NOK | Feb-24 3 months NIBOR +1.70 % | |
| Total bank borrowings at amortised cost | 949 812 | |||
| 2 020 Currency | Maturity date | Interest rate | ||
| Handelsbanken | 26 110 | NOK | Jul-21 3 months NIBOR +1.45 % | |
| Handelsbanken | 99 927 | NOK | Jun-22 3 months NIBOR +1.45 % | |
| Handelsbanken | 112 681 | NOK | Aug-22 3 months NIBOR +1.45 % | |
| Handelsbanken | 77 298 | NOK | Jan-23 3 months NIBOR +1.45 % | |
| Handelsbanken | 97 858 | NOK | May-23 3 months NIBOR +1.70 % | |
| Handelsbanken | 129 888 | NOK | Jul-23 3 months NIBOR +1.45 % | |
| Handelsbanken | 130 250 | NOK | Nov-23 3 months NIBOR +1.45 % | |
| Total bank borrowings at amortised cost | 674 012 | |||
| Changes in liabilities arising from financing activities | Interest bearing borrowings | |||
| Opening balance 1 January 2021 | 674 012 | |||
| Proceeds from borrowings | 1 084 268 | |||
| Interest expenses | 26 139 | |||
| Interests paid | - 25 444 | |||
| Repayment of borrowing | - 809 162 | |||
| Closing balance 31 December 2021 | 949 813 | |||
| Changes in liabilities arising from financing activities | Interest bearing borrowings | |||
| Opening balance 1 January 2020 | 342 280 | |||
| Proceeds from borrowings | 441 000 | |||
| Interest expenses | 11 462 | |||
| Interests paid | - 10 572 | |||
| Repayment of borrowing | - 110 158 | |||
| Closing balance 31 December 2020 | 674 012 |
On 24 February 2021, SSG signed an agreement for a new bank facility loan with Handelsbanken and Danske Bank for refinancing of all existing debt to Handelsbanken and general corporate purposes. The agreement amounts to NOK 985 million in term loan and NOK 245 million in revolving credit facility, both with maturity 3+1+1 years, and interest rate is 3 months Nibor + 1.70%.
All covenants for the new bank facility loan are to be measured and reported on a quarterly basis. There are both financial and non-financial covenants. As of 31 December 2021, the Group is in compliance with all loan covenants, and also expects to comply with covenants throughout 2022.
The financial covenants for the new bank facility loan are:
In the year 2021 SSG entered into two additional five-year interest rate swaps. There are no margin calls related to the interest rate swaps.
Interest rate swaps are recorded at fair value through profit and loss. A gain of NOK 3.7 million for the full year 2021 and a loss of NOK 1.6 million for the full year 2020 related to hedging of interests is included in the finance income/expense.
Trade and other payables are due within three months.
| Fixed interest rate agreements | Amount (MNOK) | Maturity date | Interest rate (%) |
|---|---|---|---|
| Handelsbanken | 150 000 | Mar-25 | 1.080 |
| Handelsbanken | 150 000 | Apr-25 | 0.785 |
| Handelsbanken | 300 000 | Mar-26 | 1.345 |
| Handelsbanken | 150 000 | Mar-26 | 1.420 |
Fabian Søbak CEO
Carl August Ameln Board member
Oslo, April 28th, 2022
| sign | sign | sign |
|---|---|---|
| Steven Skaar Chairman |
Gustav Sigmund Søbak Board member |
|
| sign | sign | sign |
| Ingrid Elvira Leisner Board member |
Yvonne Litsheim Sandvold Board member |
|
We confirm that the financial statements for the period 1 January up to and including 31 December 2021, to the best of our knowledge, have been prepared in accordance with applicable accounting standards and give a true and fair view of the assets, liabilities, financial positions and profit or loss of the Company and the Group as a whole. The Board of Directors' report includes a fair review of the development and performance of the business and the position of the Company and the Group as a whole, together with a description of the principal risks and uncertainties that they face.
Self Storage Group's financial information is prepared in accordance with international financial reporting standards (IFRS). In addition, management provides alternative performance measures that are regularly reviewed by management to permit for a more complete and comprehensive analysis of the Group's operating performance relative to other companies and across periods in addition to the financial information prepared in accordance with IFRS. Companies comparable to the Group vary with regards to, inter alia, capital structure and mix of leasehold and freehold properties. Non-IFRS financial measures, such as EBITDA, can assist the Company and investors in comparing performance on a more consistent basis without regard to factors such as depreciation and amortisation, which can vary significantly depending upon accounting methods, mix of freehold and leasehold properties or based on non-operating factors. Also, some of the non-IFRS financial measures presented herein adjust for one-time costs or costs that are not considered to be a part of regular operations.
The non-IFRS financial measures presented herein are not measurements of performance under IFRS or other generally accepted accounting principles and investors should not consider any such measures to be an alternative to: (a) operating revenues or operating profit (as determined in accordance with generally accepted accounting principles), as a measure of the Group's operating performance; or (b) any other measures of performance under generally accepted accounting principles. The non-IFRS financial measures presented herein may not be indicative of the Group's historical operating results, nor are such measures meant to be predictive of the Group's future results. The non-IFRS financial measures may be presented on a basis that is different from other companies.
Presenting operating profit before fair value adjustments is useful to Self Storage Group as it provides a measure of profit before taking into account the movement in fair value of freehold investment property and leasehold investment property and is useful to the Group for assessing operating performance.
Identified costs not likely to occur in the normal course of business in Self Storage Group are defined as non-recurring costs. Examples of non-recurring costs are acquisition costs, restructuring and severance packages. The exclusion of non-recurring costs is useful to Self Storage Group as it provides a measure for assessing underlying operating performance.
) available for customers to rent for self-storage ) in the portfolio included area not yet lettable to self-storage
| 31 December 2021 | 31 December 2020 |
|---|---|
| 892 626 | 519 429 |
| 51 644 | 153 699 |
| 944 270 | 673 128 |
| 2021 | 2020 |
| -36 135 | |
| -44 115 | -40 209 |
| -41 373 | -32 138 |
| -129 902 | -108 482 |
| 186 060 | 160 958 |
| 186 060 | 160 958 |
| 3 416 | 1 715 |
| 189 476 | 162 673 |
| 319 996 | 92 929 |
| - 46 356 | - 63 010 |
| 444 032 | 147 536 |
| - 92 728 | - 33 239 |
| 351 304 | 114 297 |
| 186 060 | 160 958 |
| - 16 863 | - 14 476 |
| 202 923 | 175 434 |
| 3 416 | 1 715 |
| 206 339 | 177 149 |
| 507 | - |
| - 3 923 | - 1 177 |
| - | - 538 |
| -44 414 |
The report has been prepared in accordance with the GRI Standards: Core option.
| DSC | Description | Page | Notes |
|---|---|---|---|
| 102 | Organizational profile | ||
| 102-1 | Name of the organization | 3 | Annual report 2021 |
| 102-2 | Activities, brands, products, and services | 3 | Annual report 2021 |
| 102-3 | Location of headquarters | 3 | Annual report 2021 |
| 102-4 | Location of operations | 3 | Annual report 2021 |
| 102-5 | Ownership and legal form | 20 | Annual report 2021 |
| 102-6 | Markets served | 3 | Annual report 2021 |
| 102-7 | Scale of the organization | 3, 9, 10, 22, 50 | Annual report 2021 |
| 102-8 | Information on employees and other workers | 22, 36, 37, 39 | Annual report 2021 |
| 102-9 | Supply chain | 39 | Annual report 2021 |
| 102-10 | Significant changes to the organization and its supply chain | 17, 18, 19, 39 | Annual report 2021 |
| 102-11 | Precautionary Principle or approach | 44 | Annual report 2021 |
| 102-12 | External initiatives | NA | SSG does not participate in any external initiatives as of year end 2021, but we consider to be part of external initiatives in the future |
| 102-13 | Membership of associations | 38 | Annual report 2021 |
| 102 | Strategy | ||
| 102-14 | Statement from senior decision-maker | 6 | Annual report 2021 |
| 102 | Ethics and integrity | ||
| 102-16 | Values, principles, standards, and norms of behavior | 41 | Annual report 2021 |
| 102 | Governance | ||
| 102-18 | Governance structure | 42, 43 | Annual report 2021 |
| 102 | Stakeholder engagement | ||
| 102-40 | List of stakeholder groups | 29, 30 | Annual report 2021 |
| 102-41 | Collective bargaining agreements | 36 | Annual report 2021 |
| 102-42 | Identifying and selecting stakeholders | 29, 30 | Annual report 2021 |
| 102-43 | Approach to stakeholder engagement | 29, 30 | Annual report 2021 |
| 102-44 | Key topics and concerns raised | 29, 30 | Annual report 2021 |
| 102 | Reporting practice | ||
| 102-45 | Entities included in the consolidated financial statements | 67, 82 | Annual report 2021 |
| 102-46 | Defining report content and topic Boundaries | 29, 30 | Annual report 2021 |
| 102-47 | List of material topics | 29, 30, 31 | Annual report 2021 |
| 102-48 | Restatements of information | NA | No significant restatements of information |
| 102-49 | Changes in reporting | NA | No significant changes from pre vious reporting periods |
| 102-50 | Reporting period | 8, 10 | Annual report 2021 |
| 102-51 | Date of most recent report | NA | 4/28/2022 |
| 102-52 | Reporting cycle | NA | Annual |
| 102-53 | Contact point for questions regarding the report | 45 | Annual report 2021 |
| 102-54 | Claims of reporting in accordance with the GRI Standards | 20, 28 | Annual report 2021 |
| 102-55 | GRI content index | 118 | Annual report 2021 |
| 102-56 | External assurance | SSG has not requested external assurance for the Corporate So cial Responsibility and Sustaina bility Report as of 2021. SSG will assess this practice in the future |
| DSC | Description | Page | Notes |
|---|---|---|---|
| 200 | Economic topics | ||
| 103-1 | Explanation of the material topic and its Boundary | 29, 30 | Annual report 2021 |
| 103-2 | The management approach and its components | 6, 10, 28 | Annual report 2021 |
| 103-3 | Evaluation of the management approach | 6, 28, 38 | Annual report 2021 |
| Customer satisfaction | |||
| Self-de fined |
Assessment of customer satisfaction | 38 | Annual report 2021 |
| 205-3 | Confirmed incidents of corruption and actions taken | NA | There have been no such inci dents in 2021 |
| 300 | Environmental topics | ||
| 103-1 | Explanation of the material topic and its Boundary | 29, 30 | Annual report 2021 |
| 103-2 | The management approach and its components | 6, 10, 28 | Annual report 2021 |
| 103-3 | Evaluation of the management approach | 6, 28, 32 | Annual report 2021 |
| Resource efficiency | |||
| Self-de fined |
Part of freehold facilities with LED-lightning | 32 | Annual report 2021 |
| 307-1 | Non-compliance with environmental laws and regulations | NA | There have been no such inci dents in 2021 |
| 400 | Social topics | ||
| 103-1 | Explanation of the material topic and its Boundary | 29, 30 | Annual report 2021 |
| 103-2 | The management approach and its components | 6, 10, 28 | Annual report 2021 |
| 103-3 | Evaluation of the management approach | 6, 28, 31, 36, 37 | Annual report 2021 |
| Health and safety | |||
| 403-9 | Work-related injuries | 22, 31 | Annual report 2021 |
| Integrity and human rights | |||
| 405-1 | Diversity of governance bodies and employees | 34 | Annual report 2021 |
| 405-2 | Ratio of basic salary and remuneration of women to men | 37 | Annual report 2021 |
| Employee wellbeing | |||
| 406-1 | Incidents of discrimination and corrective actions taken | NA | There have been no such inci dents in 2021 |
Statsautoriserte revisorer Ernst & Young AS
Dronning Eufemias gate 6a, 0191 Oslo Postboks 1156 Sentrum, 0107 Oslo
Foretaksregisteret: NO 976 389 387 MVA Tlf: +47 24 00 24 00
www.ey.no Medlemmer av Den norske Revisorforening
To the Annual Shareholders' Meeting of Self Storage Group ASA
We have audited the financial statements of Self Storage Group ASA (the Company) which comprise the financial statements of the Company and the consolidated financial statements of the Company and its subsidiaries (the Group). The financial statements of the Company comprise the statement of financial position as at 31 December 2021 and the income statement and statement of cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies. The consolidated financial statements of the Group comprise the statement of financial position as at 31 December 2021, the statements of comprehensive income, cash flows and changes in equity for the year then ended and notes to the financial statements, including a summary of significant accounting policies.
In our opinion
Our opinion is consistent with our additional report to the audit committee.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company and the Group in accordance with the requirements of the relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company for 5 years from the election by the general meeting of the shareholders on 29 September 2017 for the accounting year 2017.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for 2021. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
Penneo Dokumentnøkkel: DZAYU-BFMOP-5V32L-WB66C-NO1V1-LBHVN
opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor's responsibilities for the audit of the financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the financial statements.
Basis for the key audit matter
The freehold investment properties in the consolidated statement of financial position are recorded at fair value, amounting to NOK 2 422.4 million, equal to 69.4 % of the total assets. The change in fair value recorded in the statement of comprehensive income amounted to NOK 320 million in 2021. The Group used an external appraiser to assist with valuation of the freehold property. The valuation of the Group's freehold investment property is dependent on a range of estimates such as rental income and yield. The valuation of the freehold investment property is a key audit matter due to its magnitude, the uncertainty of the estimates and the complexity of the calculation.
We evaluated the professional qualifications and objectivity of the appraiser used by management. We obtained an understanding of the nature of the work performed, which included an evaluation of the objectivity and scope, including the methods and assumptions applied. We discussed the estimates and the movements in the fair value of the freehold investment property with management and the external appraiser. We involved specialists to evaluate the valuation model and the principles behind the assumptions used in estimating the fair value. Further, we tested the mathematical accuracy of the valuation model.
We refer to the Company's disclosures included in note 2 Significant accounting policies (section Freehold Investment Property), note 4 Critical accounting judgements and key sources of estimation uncertainty and note 9 Investment property in the consolidated financial statements.
Other information consists of the information included in the annual report other than the financial statements and our auditor's report thereon. Management (the board of directors and the Chief Executive Officer) is responsible for the other information. Our opinion on the financial statements does not cover the other information, and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information, and, in doing so, consider whether the board of directors' report and the statement on corporate social responsibility contain the information required by applicable legal requirements and whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information or that the information required by applicable legal requirements is not included, we are required to report that fact.
We have nothing to report in this regard, and in our opinion, the board of directors' report and the statement on corporate social responsibility are consistent with the financial statements and contain the information required by applicable legal requirements.
Penneo Dokumentnøkkel: DZAYU-BFMOP-5V32L-WB66C-NO1V1-LBHVN
3
Management is responsible for the preparation and fair presentation of the financial statements of the Company in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway and of the consolidated financial statements of the Group in accordance with International Financial Reporting Standards as adopted by the EU, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's and the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or the Group, or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
As part of our audit of the financial statements of Self Storage Group ASA we have performed an assurance engagement to obtain reasonable assurance whether the financial statements included in the annual report, with the file name 254900TSU8Q0HCFHLY03-2021-12-31-en, has been prepared, in all material respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation given with legal basis in Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements included in the annual report have been prepared, in all material respects, in compliance with the ESEF Regulation.
Management is responsible for the preparation of an annual report and iXBRL tagging of the consolidated financial statements that complies with the ESEF Regulation. This responsibility comprises an adequate process and such internal control as management determines is necessary to enable the preparation of an annual report and iXBRL tagging of the consolidated financial statements that is compliant with the ESEF Regulation.
Our responsibility is to express an opinion on whether, in all material respects, the financial statements included in the annual report have been prepared in accordance with the ESEF Regulation based on the evidence we have obtained. We conducted our engagement in accordance with the International Standard for Assurance Engagements (ISAE) 3000 – "Assurance engagements other than audits or reviews of historical financial information". The standard requires us to plan and perform procedures to obtain reasonable assurance that the financial statements included in the annual report have been prepared in accordance with the ESEF Regulation.
As part of our work, we performed procedures to obtain an understanding of the company's processes for preparing its annual report in XHTML format. We evaluated the completeness and accuracy of the iXBRL tagging and assessed management's use of judgement. Our work comprised reconciliation of the iXBRL tagged data with the audited financial statements in human-readable format. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Penneo Dokumentnøkkel: DZAYU-BFMOP-5V32L-WB66C-NO1V1-LBHVN
5
Oslo, 28 April 2022 ERNST & YOUNG AS
The auditor's report is signed electronically
Jon-Michael Grefsrød State Authorised Public Accountant (Norway)
Penneo Dokumentnøkkel: DZAYU-BFMOP-5V32L-WB66C-NO1V1-LBHVN
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