Self Storage Group

Quarterly Report • Nov 3, 2020

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Self Storage Group ASA

Third quarter 2020

3 November 2020

FINANCIALS Q3 2020

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GROUP HIGHLIGHTS – THIRD QUARTER 2020

SSG experienced limited business impact from the COVID-19 situation in the third quarter of 2020 and has a solid platform for further profitable growth and expansion.

• All time high revenues of NOK 75.0 million, up from NOK 71.9 million in Q3 2019
• All time high adjusted EBITDA¹ of NOK 48.0 million, up from NOK 44.1 million in Q3 2019
• Average occupancy for sites with more than 12 months of operation was 85.2% (85.6%) with an average rent per m² of NOK 2 320 per year (NOK 2 370)
• Like-for-like occupancy in Q3 2020 was 86.6% (86.8%) with an average rent per m² of NOK 2 392 per year (NOK 2 436 NOK)
• Total number of facilities end September 2020 was 115, up from 110 facilities at the end of September 2019
• Current lettable area end of September 2020 was 146 200 m² , up from 134 900 m² end of September 2019

EBITDA development Q3 2019 vs Q3 2020

KEY PERFORMANCE INDICATORS – THIRD QUARTER 2020

	CLA	Facilities	Occupancy	Average rent
Q3 2020	146 200 m2	115	85.2%*	2 320 NOK pr m2 *
Q3 2019	134 900 m2	110	85.6%*	2 370 NOK pr m2 *
	+11 300 m2	+5	-0.4%*	-50 NOK pr m2*

Performance of facilities with comparable m2 in Q3 20 and Q3 19** -44 -0.2%
Like-for-like	111 500 m2	95	86.6%	2 392 NOK pr m2

* Average occupancy and rent price pr m² for all sites with more than 12 months of operation, expansions are included

DEVELOPMENT IN CAPACITY, OCCUPANCY AND RENT

Occupancy for facilities Like-for-Like2) was 86.6% in Q3-20 compared to 86.8% in Q3-19 Average rent pr m²per year for facilities Like-for-Like2) was NOK 2 392 in Q3-20 compared to NOK 2 436 in Q3-19

AVERAGE OCCUPANCY1) AND RENT1) CURRENT LETTABLE AREA

The move-in rates in the CSS segment were slightly lower for a period of time after mid-March partial lock-down. More extensive entry-offer campaigns were launched to attract customers. Expansions of lettable area during the year on facilities already opened, and longer filling-up phase than 12 months for some large facilities impact average occupancy

1) Average occupancy and rent per m² for sites with more than 12 months of operation in NOK, expansions are included

2) Facilities with same CLA in Q3 20 as in Q3 19 +/- 50 m²

DEVELOPMENT OCCUPANCY & AVERAGE RENT PER MONTH

Development in occupancy*

1) Average occupancy and rent pr m² for sites with more than 12 months of operation in NOK

KEY FIGURES – THIRD QUARTER 2020

(NOK million)

KEY FIGURES

	2020	2019	Q3 20 vs	2019
	Q3	Q3	Q3 19	FY
Revenue	75.0	71.9	+3.0	266.5
Lease expenses	-1.6	-4.0	+2.4	-11.8
Property-related expenses	-9.7	-7.3	-2.4	-29.0
Salary and other employee benefits	-9.0	-8.9	-0.1	-39.6
Other operating expenses	-6.6	-8.7	+2.0	-34.7
EBITDA	48.0	43.1	+4.9	151.3
Adjustments1)	0.0	1.0	-1.0	4.7
Adjusted EBITDA	48.0	44.1	+3.9	156.0
Adjusted EBITDA-margin	64.1%	61.3%	129.4%	58.5%

ADJUSTED EBITDA Q1 2019-Q3 2020

KEY FIGURES1) – Q3 2020

(NOK million)

P&L	Q3 20	Operational change	Q3 19	FY 19
Revenue	75.0	+3.0	71.9	266.5
costs2) Total operating	-26.9	+0.9	-27.8	-110.4
Adjusted EBITDA	48.0	+3.9	44.1	156.0
Adjusted EBIT	44.2	+3.4	40.8	143.9
Change in fair value of inv. property	3.6	+3.6	0.0	17.5
Change in fair value of lease property	-16.3	-2.4	-13.8	-55.2
Net finance	-7.0	-0.3	-6.7	-26.0
Adjusted Pre-tax profit	24.6	+4.3	20.3	80.3
Adjusted Net profit	20.0	+3.6	16.4	65.5
m2 Current lettable area (thousands )	146.2	+11.3	134.9	137.5
Lettable area under development m2 (thousands ) Cash flows	28.8	+5.1	23.7	21.4
Net cash flows from operating activities	57.8	+21.5	36.3	145.5
Net cash flows from investing activities	-49.7	+401.6	-451.3	-561.2
Net cash flows from financing activities	19.3	-75.0	94.3	381.9
Cash and cash equivalents at beginning of the period	204.9	-218.5	423.4	122.2
Cash and cash equivalents at end of the period	232.5	+129.7	102.9	88.1

Balance sheet	30 Sep 20	31 Dec 19
ASSETS
Freehold investment property	1 250.0	1 074.4
Leasehold investment property	547.3	489.1
Property, plant and equipment	119.9	114.4
Goodwill	184.6	184.8
Financial instruments	24.8	24.8
Total non-current assets	2 128.2	1 887.5
Other current assets	31.6	28.9
Cash and bank deposits	232.5	88.1
Total current assets	264.1	117.1
TOTAL ASSETS	2 392.3	2 004.6
EQUITY AND LIABILITIES
Total equity	1 097.6	1 005.1
Long-term interest-bearing debt	423.8	239.1
Long-term obligations under finance leases	514.5	450.6
Deferred tax liabilities	90.0	91.1
Other non-current liabilities	6.2	0.5
Total current liabilities	260.1	218.3
Total liabilities	1 294.7	999.6
TOTAL EQUITY AND LIABILITIES	2 392.3	2 004.6

1) Unaudited figures for 2020

2) Adjusted for non-recurring costs of NOK 0 million in Q3 2020, NOK 1.0 million in Q3 2019 and NOK 4.7 million FY 2019

STEADY GROWTH IN SHARE OF FREEHOLD PORTFOLIO

DEVELOPMENT IN SHARE OF FREEHOLD FACILITIES SHARE OF FREEHOLD FACILITIES PER CONCEPT

• SSG's strategy is to expand within freehold facilities
• 39% of current lettable area in operation at the end of September 2020 was freehold
• Freehold m² has increased with 15% since December 2019
• 56 of a total of 115 facilities in operation (49%) were freehold as of September 2020
• SSG plans to open 10 000 m²in 2020, mainly freehold

30.09.2020 m2	Current lettable area	Under development	Total lettable area
Freehold facilities	56 300	28 100	84 400
Leased facilities	89 900	700	90 600
SUM	146 200	28 800	175 000

FREEHOLD INVESTMENT PROPERTY AS OF Q3 2020 -PROPERTY VALUE INCREASED BY 16% FROM DECEMBER 2019

• 56 self-storage facilities with a total gross area of 105 200 m²
• 5 land properties for containers with a total gross area of 13 200 m²
• 3 greenfield development properties with a total gross area of 13 800 m²
• 1 freehold property acquired in Q3 2020
• Internal lease agreements at commercial terms are signed between OK Property and the operating companies in the Group
• External valuations by real estate appraiser Newsec upon acquisition of new property, and once a year with quarterly assessment of indications of change

Gross area pr region and yield as of 31.12.19

Freehold portfolio Total freehold property of 1 250 MNOK

Development change in fair value over P&L

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CURRENT LETTABLE AREA OF 146 200 M²AS OF Q3 2020 – 28 800 M² IN PIPELINE1)

1) Potential lettable area of the option to acquire a neighbouring building at Billingstad is not included in the CPIs of Q3 2020

28 800 M² IN POTENTIAL LETTABLE AREA

• The potential m²is mainly in freehold facilities in Norway
• Rent income from expiring lease contracts from 5 200 m²of the 28 800 m²not yet built into self-storage units
• 10 000 m² planned to open during 2020 (organic)
• 8 700 m²opened as of 30.09.2020
• Expects to open 12 000-14 000 m²during 2021 (organic)
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Area with other rentals	4 800	400	5 200
Sum	23 600	5 200	28 800
Expansions	12 700	3 500	16 200
New facilities	10 900	1 700	12 600
	CSS	OKM	Total SSG

Current lettable area pr region2) Lettable area under development1)

1) As of 30 September 2020. In addition there is a potential in lettable area of 700 m²in Denmark (expansion)

REVENUE DYNAMICS Q3 2020

1) Average occupancy and rent pr m² for sites with more than 12 months of operation in NOK

STRONG LINK BETWEEN REVENUE GROWTH AND ABSOLUTE GROWTH IN PRE TAX FREE CASH FLOW

High cash-conversion business

BUSINESS DEVELOPMENT

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UNTAPPED POTENTIAL FOR SELF STORAGE IN SCANDINAVIA

Scandinavia lagging in terms of self storage space per capita (sq.m.)

• Significant untapped potential in the Scandinavian countries
• Awareness about self storage is still low in Scandinavia
• The self storage market is growing across
• all of Europe
• Urbanization is driving growth
• New building-standards in Norway require less storage-space

THE SCANDINAVIAN SELF STORAGE MARKET AT A GLANCE

Source: Company information, FEDESSA European Self Storage Survey 2020

SUCCESS FACTORS IN SELF STORAGE

SSG CONSISTS OF TWO DISTINCT BUSINESS CONCEPTS

City Self-Storage OK Minilager

High-end brand providing self-storage rental and ancillary products and services in Scandinavia's larger cities

• 411) temperate storage facilities across Scandinavia
• One of the leading self-storage providers in the Scandinavian market
• Located in Greater-Oslo, Stavanger, Trondheim, Stockholm and Copenhagen
• 87 300 m² CLA (20 800 m² is freehold)

• • Countrywide, discount-priced offering of self-serviced storage facilities in Norway
• 741) facilities located across Norway
• 45 temperate storage facilities and 29 drive-in storage facilities
• 2 nd largest player in Norway, behind CSS²
• Self service, open 24 hr/day and 7 days a week
• 58 900m² CLA ( 35 500 m² is freehold)

A LARGE, DIVERSIFIED AND INCREASINGLY LOYAL CUSTOMER BASE SECURING EVERGREEN INCOME STREAMS

3) The data is based on customer surveys on selected facilities

As of 31 March 2019 1) The numbers are approximate 2) Average rental time is longer than 12 months as customers who have not yet terminated the lease is not included in the average

DEVELOPMENT PIPELINE

Greenfield development projects

Facility	Location	Status	Potential CLA (approx.)	Expected opening	Concept
Oslo Breivollveien 25	Landmark location with unique visibility	Building permission received on 1st July 2020. Construction in progress.	4 900 m2	Q3 2021
Oslo Bjørnerudveien 10	Property south of Oslo with significant catchment area	Building permission received on May 7th 2020. Construction in progress.	2 500 m2	Q3 2021
Trondheim John Aaes vei	Highly visible property with easy access from main roads	Building permission received on June 6th 2020. Construction is expected to start in November 2020.	3 100 m2	H2 2021

DEVELOPMENT PIPELINE

Significant conversion/expansion projects

Facility	Location	Status	Potential CLA (approx.)	Expected opening	Concept
Oslo Hovfaret 11	Located at Skøyen, an attractive commercial hub with a significant catchment area	Self storage fit-out is constructed on three floors of this 6-floor building. Next phase is planned to open in 2021.	3 500 m2	Open
Oslo Østre Aker vei 101	Facility located alongside Østre Aker vei with great visibility and access	Self storage fit-out is constructed on one floor of this 4-floor building. Fit-out will be constructed on two new floors in Q1 2021.	3 000 m2	Open
Oslo Ulvenveien 28	Highly-visible property in a larger development area	Planning under progress. Estimated to open during 2021.	2 500 m2	2021

ACQUISITION OF PROPERTY IN BODØ Sneveien 13 AS

• Estimated lettable area of 1 000 m²
• Estimated to open in Q4 2020
• The facility will be operated under the OK Minilager brand
• The transaction has a property value of NOK 11.1 million
• This investment is in line with the Group´s strategy to grow with freehold properties in selected urban markets

SSG HAS A STRONG PLATFORM FOR FUTURE GROWTH

STRATEGIC SUMMARY

• Grow our freehold portfolio in selected urban markets
• Focus on the larger urban areas in Norway
• Occupancy target of 90%
• Investments in CRM, automation and digital platforms
• Creating great customer experience
• Lean operation and self-service
• Opportunistic approach to expansion in Sweden and Denmark
• Looking to selectively acquire existing self storage providers in the Nordics

Illustration of a greenfield project developed under the CSS brand

COVID-19

▪ Norway went into a partial lockdown on 12 March 2020

• Self Storage Group adapted to the pandemic by:
  • Implementing measures to safeguard customers and employees
  • Keeping self-storage facilities open as usual for both existing and new customers
  • Using our self-serviced and digitalised offering that by nature is a safe and flexible solution for our customers
  • Updating the risk evaluation in the interim report for Q3 2020
• The Group experienced limited business impact due to Covid-19 as of 2020. The move-in rates in the CSS segment were slightly lower for a period of time after mid-March impacting occupancy growth, and more extensive entry-offer campaigns were implemented to attract customers. We have seen a strong development in move-ins since June, and development in occupancy has been satisfactory in the quarter.

Disclaimer

The information included in this Presentation contains certain forward-looking statements that address activities, events or developments that Self Storage Group ASA ("the company") expects, projects, believes or anticipates will or may occur in the future. These statements are based on various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties. The Company is subject to a large number of risk factors including but not limited to economic and market conditions in the geographic areas and markets in which Self Storage Group is or will be operating, counterpart risk, interest rates, access to financing, fluctuations in currency exchange rates, and changes in governmental regulations. For a further description of other relevant risk factors we refer to the Annual Report for 2019 for Self Storage Group and updated risk evaluation in the interim report for Q3 2020. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements. The reservation is also made that inaccuracies or mistakes may occur in the information given above about current status of the Company or its business. Any reliance on the information above is at the risk of the reader, and Self Storage Group disclaims any and all liability in this respect.

Self Storage Group ASA Karenslyst Allé 2

0278 Oslo Norway

Contact info:

Cecilie Brænd Hekneby (CFO) +47 992 93 826 cehe@selfstoragegroup.no

Appendix

SSG LISTED ON OSLO STOCK EXCHANGE SINCE 27.10.2017

Largest shareholders Share development

	1)

Total number of shares: 84 328 584

As of 2 November 2020

1) Alta Lux Holdco S.a.r.l/Centerbridge Partners

Shareholder structure

THIRD QUARTER 2020 COMPREHENSIVE INCOME

Profit and loss statement Comments

(Amounts in NOK 1 000)	Note	Unaudited For the three months ended 30 September 2020	Unaudited For the three months ended 30 September 2019	Unaudited For the nine months ended 30 September 2020	Unaudited For the nine months ended 30 2019	Audited For the twelve months ended September 31 December 2019
Revenue	3	74 950	71 909	217 424	194 569	266 453
Lease expenses	3	1 600	3 952	7 372	10 275	11 813
Property-related expenses	3	9 705	7 292	25 493	20 279	28 975
Salary and other employee benefits	3	9 000	8 913	29 944	28 396	39 566
Depreciation		3819	3 298	10 748	8 259	12 108
Other operating expenses	3	6626	8 666	23 647	25 493	34 730
Operating profit before fair value adjustments		44 200	39 788	120 220	101 867	139 261
Change in fair value of freehold investment property	5	3 620		9 565	5 073	17 523
Change in fair value of leasehold investment property	5	-16 261	-13 825	-47 513	-40 478	-55 204
Operating profit after fair value adjustments		31 559	25 963	82 272	66 462	101 580
Finance income		124	374	510	657	1 283
Finance expense	7	7 114	7 056	30 881	18 947	27 260
Profit before tax		24 569	19 281	51 901	48 172	75 603
Income tax expense		4 585	3718	9 522	9 921	13 870
Profit for the period		19 984	15 563	42 379	38 251	61 733
Total adjustments			997	1 461	3 986	4 653

• Revenue for Q3 2020 was NOK 75.0 million, up from NOK 71.9 million in Q3 2019. The increase is related to the growth in lettable area and rentals
• Operating profit before fair value adjustments in Q3 2020 of NOK 44.2 million, an increase of NOK 4.4 million related to Q3 2019. The growth in lettable area and rentals simultaneous with stable costs impact the figures.
• In total non-recurring items amounted to NOK 0.0 million in Q3 2020 and NOK 1.0 million in Q3 2019
• The fair value of investment property is based on external valuations for freehold investment property and value adjustment due to passage of time for leasehold investment property

YTD 2020 – FINANCIAL POSITION

(Amounts in NOK 1 000)		Unaudited	Audited
		30 September 31 Decembe
ASSETS		2020	201
Non-current assets	Note
Freehold investment property	5	1 249 952	1 074 457
Leasehold investment property	5	547 284	489 062
Property, plant and equipment		119 925	112 595
Goodwill		184 569	184 828
Other intangible assets		1 710	1 839
Total non-current assets		2 128 190	1 887 531
Current assets
Inventories		1 664	1 617
Trade and other receivables		15 741	15 928
Other current assets		14 170	11 410
Cash and bank deposits		232 539	88 117
Total current assets		264 114	117 072
TOTAL ASSETS		2 392 304	2 004 603

Financial position Comments

(Amounts in NOK 1 000)		Unaudited	Audited
		30 September 31 December
EQUITY AND LIABILITIES		2020	2019
Equity
Issued share capital	e	8 432	8 261
Share premium		791 594	744 853
Other reserves		3 174	- 93
Retained earnings		294 411	252 032
Total equity		1 097 611	1 005 053
LIABILITIES
Non-current liabilities
Long-term interest-bearing debt	7	423 814	239 057
Long-term obligations under finance leases	1	514 491	450 642
Other financial liabilities		6 231	AET
Deferred tax liabilities		90 025	91 053
Total non-current liabilities		1034 561	781 206
Current liabilities
Short-term interest-bearing debt	7	127 927	103 223
Short-term obligations under finance leases 7		53 235	52 190
Trade and other payables		21 408	7 115
Income tax payable		10 426	9 309
Other taxes and withholdings		6629	5 276
Other current liabilities		40 507	41 231
Total current liabilities		260 132	218 344
Total liabilities		1 294 693	999 550
TOTAL EQUITY AND LIABILITIES		2 392 304	2 004 603

• Total assets of NOK 2 392 million
• Freehold investment property increased with NOK 175.5 million and leasehold investment property increased with NOK 58.2 million since 31 December 2019
• Cash and bank deposits increased with NOK 144.4 million since 31 December 2019, mainly due to new borrowings under the existing and new loan facilities exceeding net outflow on acquisition of subsidiaries and investment property in the nine months of 2020
• Increased equity through issuance of considerations shares and result for the period
• Negative net interest-bearing debt was NOK 319.2 million in the balance as of 30 September 2020. Increased obligations under financial lease with NOK 64.9 million due to additional options and a renegotiated leasehold contract from short-term till lang-term included in the balance sheet, and translation differences exceeding lease payments in the first nine months of 2020
• Equity ratio was 46% 30 September 2020

YTD 2020 – CASH FLOW

Condensed consolidated statement of cash flows

Comments
Operating activities
▪
Strong cash flow
▪ Invoicing of customers in advance – predictable and stable costs
Investing activities
▪ One company asset acquisition with cash in Q3 2020
▪ Development of properties, additions to existing properties
and fit out new facilities and expansions
▪ Maintenance is posted as property cost
Financing activities
▪ Proceeds from an additional borrowing drawn up on a new
loan facility amounted to NOK 131 million and repayment of loan amounted to NOK 89.2 million in Q3 2020
▪ Payment of lease liabilities and payments of lease classified as
interests
SSG's cash position at the end of September 2020 was
NOK 232.5 million

EBITDA-DEVELOPMENT

(NOK million)

BRIDGE Q3 2019-Q3 2020

ADJUSTED PROFIT BEFORE TAX DEVELOPMENT

(NOK million)

BRIDGE Q3 2019-Q3 2020

OUR HISTORY

1993	1998	2009	2016	2017
•First CSS site established in Norway, investment in "Safe Mini Lager" in Sweden	•Selvaag Group entered into the business and CSS expanded to Denmark	•OK Minilager was established by Gustav and Fabian Søbak	•Ferncliff invested in OK Minilager •OK Minilager acquired CSS	•SSG established •Listed on OSE
	2017	2018	2019	20202)
Private placements1)	100 MNOK 200 MNOK		250 MNOK
Acqusition of companies	(9 facilities)		(4 facilities)
		(4 facilities)
Acqusition of properties	10	11	8	4

1) Gross proceeds

2) As of September