Self Storage Group

Investor Presentation • Aug 18, 2020

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Self Storage Group ASA

Second quarter 2020

18 August 2020

FINANCIALS Q2 2020 & 1H 2020

GROUP HIGHLIGHTS – SECOND QUARTER 2020

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

• Revenues of NOK 71.7 million, up from NOK 61.0 million in Q2 2019
• Adjusted EBITDA¹ of NOK 42.9 million, up from NOK 35.6 million in Q2 2019
• Average occupancy for sites with more than 12 months of operation was 82.3% (84.9%) with an average rent per m² of NOK 2 349 per year (NOK 2 338)
• Like-for-like occupancy in Q2 2020 was 85.1% (84.0%) with an average rent per m² of NOK 2 355 per year (NOK 2 337 NOK)
• Total number of facilities end June 2020 was 113, up from 106 facilities at the end of June 2019
• Current lettable area end of June 2020 was 142 100 m² , up from 122 000 m² end of June 2019

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EBITDA development Q2 2019 vs Q2 2020

1) Adjusted for non-recurring costs of NOK 0 million in Q2 2020 and NOK 2.5 million in Q2 2019

GROUP HIGHLIGHTS – FIRST HALF YEAR 2020

• Revenues of NOK 142.5 million, up from NOK 122.7 million in first half year 2019
• Adjusted EBITDA¹ of NOK 84.4 million, up from NOK 70.0 million in first half year 2019
• Change in fair value of freehold investment properties of NOK 5.9 million, up from NOK 5.1 million in first half year 2019
• Agreement of two interest rate swaps in first half year 2020 of a total of NOK 300 million
• Net finance of NOK -23.4 million, compared to NOK -11.6 million in first half year 2019
• Adjusted profit before tax¹ of 28.8 million, down from NOK 31.9 million in first half year 2019
• Cash position end June 2020 of NOK 204.9 million, up from NOK 88.1 million end of December 2019
• Total value of freehold investment property end June 2020 of NOK 1 204 million, up from NOK 1 074 million end of December 2019
• Loan to value of freehold investment property is 42% as of end June 2020, compared to 32% as of end December 2019

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EBITDA development first half year 2019 vs first half year 2020

1) Adjusted for non-recurring costs of NOK 1.5 million in first half year 2020 and NOK 3.0 million in first half year 2019

KEY PERFORMANCE INDICATORS – SECOND QUARTER 2020

	CLA	Facilities	Occupancy	Average rent
Q2 2020	142 100 m2	113	82.3%*	2 349 NOK pr m2 *
Q2 2019	122 000 m2	106	84.9%*	2 338 NOK pr m2 *
	+20 100 m2	+7	-2.6%*	+11 NOK pr m2*

Performance of facilities with comparable m2 in Q2 20 and Q2 19** +18 +1.1%
Like-for-like	100 500 m2	90	85.1%	2 355 NOK pr m2

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

KEY FIGURES – SECOND QUARTER 2020

(NOK million)

KEY FIGURES

			Q2 20
	2020	2019	vs	2019
	Q2	Q2	Q2 19	FY
Revenue	71.7	61.0	+10.6	266.5
Lease expenses	-2.8	-3.2	+0.4	-11.8
Property-related expenses	-7.7	-6.0	-1.7	-29.0
Salary and other employee benefits	-9.9	-9.7	-0.2	-39.6
Other operating expenses	-8.3	-9.0	+0.7	-34.7
EBITDA	42.9	33.1	+9.8	151.3
Adjustments1)	0.0	2.5	-2.5	4.7
Adjusted EBITDA	42.9	35.6	+7.3	156.0
Adjusted EBITDA-margin	59.8%	58.4%	68.9%	58.5%

ADJUSTED EBITDA Q1 2019-Q2 2020

KEY FIGURES1) – Q2 2020

(NOK million)

P&L	Q2 20	Operational change	Q2 19	FY 19
Revenue	71.7	+10.6	61.0	266.5
costs2) Total operating	-28.7	-3.3	-25.4	-110.4
Adjusted EBITDA	42.9	+7.3	35.6	156.0
Adjusted EBIT	39.1	+6.1	33.0	143.9
Change in fair value of inv. property	0.2	-4.5	4.7	17.5
Change in fair value of lease property	-15.8	-2.4	-13.4	-55.2
Net finance	-13.9	-8.2	-5.7	-26.0
Adjusted Pre-tax profit	9.6	-9.0	18.6	80.3
Adjusted Net profit	7.9	-6.1	14.0	65.5
m2 Current lettable area (thousands )	142.1	+20.1	122.0	137.5
Lettable area under development m2 (thousands ) Cash flows	29.7	+16.0	13.7	21.4
Net cash flows from operating activities	39.6	+5.5	34.1	145.5
Net cash flows from investing activities	-23.9	+49.7	-73.6	-561.2
Net cash flows from financing activities	68.6	-264.9	333.5	381.9
Cash and cash equivalents at beginning of the period	121.0	-8.5	129.5	122.2
Cash and cash equivalents at end of the period	204.9	-218.5	423.4	88.1

Balance sheet	30 Jun 20	31 Dec 19
ASSETS
Freehold investment property	1 203.7	1 074.4
Leasehold investment property	520.9	489.1
Property, plant and equipment	116.4	114.4
Goodwill	184.5	184.8
Financial instruments	24.8	24.8
Total non-current assets	2 052.1	1 887.5
Other current assets	35.0	28.9
Cash and bank deposits	204.9	88.1
Total current assets	239.9	117.1
TOTAL ASSETS	2 292.0	2 004.6
EQUITY AND LIABILITIES
Total equity	1 077.5	1 005.1
Long-term interest-bearing debt	304.9	239.1
Long-term obligations under finance leases	489.0	450.6
Deferred tax liabilities	89.5	91.1
Other non-current liabilities	6.0	0.5
Total current liabilities	325.1	218.3
Total liabilities	1 214.5	999.6
TOTAL EQUITY AND LIABILITIES	2 292.0	2 004.6

1) Unaudited figures for 2020

2) Adjusted for non-recurring costs of NOK 0.0 million in Q2 2020, NOK 2.5 million in Q2 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
• 38% of current lettable area in operation at the end of June 2020 was freehold
• Freehold m² has increased with 10% since December 2019
• 54 of a total of 113 facilities in operation (48%) were freehold as of June 2020
• SSG plans to open 10 000 m²in 2020, mainly freehold

30.06.2020 m2	Current lettable area	Under development	Total lettable area
Freehold facilities	53 800	29 500	83 300
Leased facilities	88 300	200	88 500
SUM	142 100	29 700	171 800

FREEHOLD INVESTMENT PROPERTY AS OF Q2 2020 -PROPERTY VALUE INCREASED BY 21% FROM DECEMBER 2019

• 55 self-storage facilities with a total gross area of 103 700 m
• 5 land properties for containers with a total gross area of 15 600 m²
• 2 greenfield development properties with a total gross area of 11 400 m²
• 1 freehold properties acquired in Q2 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 once a year, quarterly assessment of indications of change

Gross area pr region and yield as of 31.12.19

Freehold portfolio Total freehold property of 1 204 MNOK

Development change in fair value over P&L

CURRENT LETTABLE AREA OF 142 100 M²AS OF Q2 2020 – 29 700 M² IN PIPELINE1)

1) Potential lettable area of the option to acquire a neighbouring building at Billingstad is not included in the CPIs of Q2 2020

29 700 M² IN POTENTIAL LETTABLE AREA

▪	The potential m2 is in freehold facilities in Norway
▪	Rent income from expiring lease contracts from 5 500 m2 of the 20 700 m2 not yet
	built into self-storage units

• 10 000 m² are planned to open during 2020 (organic)
• 4 600 m²opened as of 30.06.2020

Area with other rentals	5 200	300	5 500
Sum	26 200	3 500	29 700
Expansions	11 100	3 500	14 600
New facilities	15 100	0	15 100
	CSS	OKM	Total SSG

Current lettable area pr region2) Lettable area under development1)

1) As of 30 June 2020. In addition there is a potential in lettable area of 200 m²in Denmark (expansion)

DEVELOPMENT IN CAPACITY, OCCUPANCY AND RENT

Occupancy for facilities Like-for-Like2) has increased from 84.0% in Q2-19 to 85.1% in Q2-20 Average rent pr m²per year for facilities Like-for-Like2) has increased from NOK 2 337 to NOK 2 355

AVERAGE OCCUPANCY1) AND RENT1) CURRENT LETTABLE AREA

The move-in rates in Q2 2020 in the CSS segment were slightly lower for a period of time after mid-march impacting occupancy growth. There was however a strong development in move-ins in June Occupancy in CSS Norway, CSS Denmark and OKM has decreased due to expansions of lettable area during the year, and due to longer filling-up phase than 12 months for some large facilities

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 Q2 20 as in Q2 19 +/- 50 m²

REVENUE DYNAMICS Q2 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

Strong link between further growth in revenue and EBITDA

THE COMPANY

THE SCANDINAVIAN SELF STORAGE MARKET AT A GLANCE

Source: Company information, proff.no, allabolag.se, proff.se

1) Showing revenue in local currencies. Ranking in Denmark based on number of sites as revenue is not available. Some operators have still not reported revenue for 2019.

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

• 391) temperate storage facilities across Scandinavia
• One of the leading self-storage providers in the Scandinavian market
• Located in Greater-Oslo, Stavanger, Stockholm and Copenhagen, due to open in Trondheim
• 83 500 m² CLA (18 600 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 CSS
• Self service, open 24 hr/day and 7 days a week
• 58 600m² CLA ( 35 200 m² is freehold)

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	Q1-20	Q2-20
Private placements1)	100 MNOK 200 MNOK		250 MNOK
Acqusition of companies	(9 facilities)	(4 facilities)	(4 facilities)
Acqusition of properties	10	11	8	2	1

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

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

BUILDING PERMISSION RECEIVED Breivollveien 25B - Oslo

• Building permission received on 1st July 2020
• Gross area of 7 100 m²
• Estimated lettable area of 4 900 m²
• 1 st phase estimated to open during Q3 2021
• The facility will be operated under the CSS brand
• Unique visibility with daily traffic count of 100 000+ cars
• 200 000 residents within a 4 km² radius

BUILDING PERMISSION RECEIVED Bjørnerudveien 10 - Oslo

• Building permission received on May 7th 2020
• Gross area of 3 600 m²
• Estimated lettable area of 2 500 m²
• 1 st phase estimated to open during Q3 2021
• The facility will be operated under the OKM brand
• The property has a significant catchment area
• There is additional land for further development on the property

BUILDING PERMISSION RECEIVED John Aaes vei - Trondheim

• Building permission received on June 6th 2020
• Gross area of 4 400 m²
• Estimated lettable area of 3 100 m²
• Estimated to open during 2nd half of 2021
• The facility will be operated under the CSS brand
• The property has a significant catchment area
• The property has great visibility and easy access from main roads.

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 two floors of this 6 floor building. 2nd phase of the fit-out installation is completed in August 2020. Next phases are 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	First phase of this conversion project is under construction and estimated to open during Q3 2020.	3 000 m2	2020
Trondheim Håkon Magnussons gate 1 A	Highly visible location in a big-box retail areal close to the city centre	Construction completed. Opened in August 2020. The project was delayed due to COVID-19.	2 100 m2	Open
Oslo Ulvenveien 28	Highly visible location in a larger development area	Planning under progress. Estimated to open during 2021.	2 500 m2	2021

SSG HAS A STRONG PLATFORM FOR FUTURE GROWTH

STRATEGIC REVIEW

• In January 2020, Self Storage Group announced a strategic review. After exploring a variety of opportunities, the Board has concluded that what is likely to serve shareholders best at present is to continue our growth strategy as an independent and listed company.
• In addition to ongoing projects and organic growth in existing locations, Self Storage Group is also actively considering acqusition growth opportunities that can create value for our shareholders. Further strengthening our position in Norway remains a key priority, while we simultaneously review opportunities for growth in the Nordics

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 experiences
• 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 from 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 Q2 2020
• The Group experienced limited business impact due to Covid-19 in the second quarter and first half year of 2020. The move-in rates in the CSS segment were slightly lower for a period of time after mid-March impacting occupancy growth. There was however a strong development in move-ins in June. A few of the sites under construction were delayed due to closed factories, but the company still plan to reach the target of developing 10 000 CLA in 2020.

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 Q2 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

	Holding	%	Name	Country
1	19 230 909	22,8 %	1) UBS Switzerland AG	Switzerland
2	9 565 000	11,3 %	FABIAN HOLDING AS	Norway
3	6 565 000	7,8 %	CENTRUM SKILT AS	Norway
4	3 896 103	% 4,6	FIRST RISK CAPITAL AS	Norway
5	3 828 293	4,5 %	SKAGEN M2 VERDIPAPIRFOND	Norway
6	3 772 180	4,5 %	VERDIPAPIRFONDET ODIN EIENDOM	Norway
7	3 623 214	4,3 %	VATNE EQUITY AS	Norway
8	2 134 246	% 2,5	J.P. Morgan Bank Luxembourg S.A.	Sweden
9	1 957 620	2,3 %	Citibank, N.A.	Ireland
10	1 923 074	2,3 %	MARLBOROUGH EUROPEAN MULTI-CAP	FND United Kingdom
11	1 711 358	2,0 %	WESSEL-INVEST AS	Norway
12	1 641 428	% 1,9	Danske Invest Norge Vekst	Norway
13	1 533 216	1,8 %	SA/NV The Bank of New York Mellon	France
14	1 158 611	1,4 %	BNP Paribas Securities Services	Luxembourg
15	1 126 089	1,3 %	VPF FIRST NORDISK EIENDOM	Norway
16	1 102 008	% 1,3	Brown Brothers & Harriman Co.	United States
17	1 050 000	1,2 %	VERDIPAPIRFONDET HOLBERG NORGE	Norway
18	951 038	1,1 %	MUSTAD INDUSTRIER AS	Norway
19	709 227	0,8 %	KLAVENESS MARINE FINANCE AS	Norway
20	705 146	% 0,8	SOLE ACTIVE AS	Norway
	68 183 760	80,9 %

Total number of shares: 84 328 584

As of 17 August 2020

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

Shareholder structure

SECOND QUARTER 2020 COMPREHENSIVE INCOME

Profit and loss statement Comments

(Amounts in NOK 1 000)		Unaudited months ended	Unaudited For the three For the three months ended 30 June 2020 30 June 2019 30 June 2020 30 June 2019	Unaudited For the six months ended	Unaudited For the six months ended	Audited For the twelve months ended 31 December
	Note					2019
Revenue	3	71 657	61 022	142 474	122 660	266 453
Lease expenses	3	2819	3215	5773	6323	11 813
Property-related expenses	3	7 706	6013	15 788	12 987	28 975
Salary and other employee benefits	3	9 937	9 734	20 943	19 484	39 566
Depreciation		3 870	2 533	6 929	4 961	12 108
Other operating expenses	3	8 264	8 968	17 021	16 826	34 730
Operating profit before fair value adjustments		39 061	30 559	76 020	62 079	139 261
Change in fair value of freehold investment property		239	4 667	5 944	5 073	17 523
Change in fair value of leasehold investment property	5	-15 809	-13 433	-31 252	-26 653	-55 204
Operating profit after fair value adjustments		23 491	21 793	50 712	40 499	101 580
Finance income		258	126	386	284	1 283
Finance expense	7	14 190	5 833	23 767	11 892	27 260
Profit before tax		9 559	16 086	27 331	28 891	75 603
Income tax expense		1 691	3 989	4 937	6 202	13 870
Profit for the period		7 868	12 097	22 394	22 689	61 733
Total adjustments		-	2 489	1461	2 989	4 653

• Revenue for Q2 2020 was NOK 71.7 million, up NOK 10.6 million from Q2 2019. The increase is related to the acquisition of Eurobox in July 2019 and growth in lettable area and rentals
• Operating profit before fair value adjustments in Q2 2020 of NOK 39.1 million, an increase of NOK 8.5 million related to Q2 2019. The acquisition of Eurobox in July 2019 and growth in lettable area and rentals impact the figures.
• In total non-recurring items amounted to NOK 0.0 million in Q2 2020 and NOK 2.5 million in Q2 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

nts in NOK 1 000)	Unaudited	Audited	(Amounts in NOK 1 000)		Unaudited	Audited
						30 June 31 December
		30 June 31 December	EQUITY AND LIABILITIES		2020	2019
5	2020	2019	Equity
Note urrent assets				6	8 432	8 261
5 old investment property	1 203 678	1 074 457	Issued share capital
2,5 old investment property	520 913	489 062	Share premium		791 594	744 853
rty, plant and equipment	116 439	112 595	Other reserves		3 026	- 03
vi II	184 519	184 828	Retained earnings		274 426	252 032
	1 778	1 839	Total equity		1 077 478	1 005 053
intangible assets			LIABILITIES
non-current assets	2 052 077	1 887 531	Non-current liabilities
nt assets			Long-term interest-bearing debt	7	304 896	239 057
ories	1 686	1 617	Long-term obligations under finance leases	7	488 972	450 642
and other receivables	15 218	15 928	Other financial liabilities		6 035	454
current assets	18 112	11 410	Deferred tax liabilities		89 531	91 053
nd bank deposits	204 931	88 117	Total non-current liabilities		889 434	781 206
current assets	239 947	117 072	Current liabilities
ASSETS	2 292 024	2 004 603	Short-term interest-bearing debt	7	204 927	103 223
			Short-term obligations under finance leases	1	50 692	52 190
			Trade and other payables		12 432	7115
			Income tax payable		10 411	9 309
			Other taxes and withholdings		7 219	5 276
			Other current liabilities		39 431	41 231
			Total current liabilities		325 112	218 344

Financial position Comments

• Total assets of NOK 2 292 million
• Freehold investment property increased with NOK 129.2 million and leasehold investment property increased with NOK 31.9 million since 31 December 2019
• Cash and bank deposits increased with NOK 116.8 million since 31 December 2019, mainly due to new borrowings under the existing loan facility exceeding net outflow on acquisition of subsidiaries and investment property in the first half year 2020
• Increased equity through issuance of considerations shares and result for the period
• Negative net interest-bearing debt was NOK 304.9 million in the balance as of 30 June 2020. Increased obligations under financial lease with NOK 36.8 million due to additional options included in the balance sheet and translation differences exceeding lease payments in the first half year 2020
• Equity ratio was 47% 30 June 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 Q2 2020
▪ Establishment and fit out new facilities and expansions
▪ Maintenance is posted as property cost
Financing activities
▪ Proceeds from a new loan under the existing loan facility and repayment of loan facility in Q2 2020
▪ Payment of lease liabilities and payments of lease classified as
interests
SSG's cash position at the end of June 2020 was
NOK 204.9 million

EBITDA-DEVELOPMENT

(NOK million)

BRIDGE Q2 2019-Q2 2020

ADJUSTED PROFIT BEFORE TAX DEVELOPMENT

(NOK million)

BRIDGE Q2 2019-Q2 2020

EBITDA-DEVELOPMENT

(NOK million)

BRIDGE FIRST HALF YEAR 2019-FIRST HALF YEAR 2020

ADJUSTED PROFIT BEFORE TAX DEVELOPMENT

(NOK million)

BRIDGE 1H 2019-1H 2020