Self Storage Group ASA Third quarter 2018

8 November 2018

GROUP HIGHLIGHTS – THIRD QUARTER 2018

Revenues in Q3 2018 NOK 60.6 million, up from NOK 55.6 million in Q3 2017
Adjusted EBITDA in Q3 2018 of 22.4 million1), up from NOK 17.4 million in Q3 2017
Fair value of investment property end September 2018 of NOK 456.4 million
Total gross owned property portfolio of 65 100 m²
Two new facilities opened during the quarter and expansions increasing current lettable area by 2 000 m² to 114 900 m²
Cash position 108 million
The Group's current loan to value on investment property is 20%

KEY PERFORMANCE INDICATORS – THIRD QUARTER 2018

2 500 Development occupancy and rent

KEY FIGURES – THIRD QUARTER 2018

(NOK million)

KEY FIGURES

DEVELOPMENT Q1 2017-Q3 2018

	2018	2017	2017
	Q3	Q3	FY
Revenue	60.6	55.6	212.1
Total operating costs1)	38.2	38.2	158.0
Adjusted EBITDA	22.4	17.4	54.2
Non-recurring costs	0.0	4.6	11.3
Reported EBITDA	22.4	12.8	42.9

KEY FIGURES1) – THIRD QUARTER 2018

(NOK million)

P&L	Q3 18	Q3 17	FY 17
Revenue	60.6	55.6	212.1
costs2) Total operating	38.2	38.2	158.0
Adjusted EBITDA	22.4	17.4	54.2
Adjusted EBIT	19.2	15.2	46.9
Change in fair value of investment properties	0.0	0.8	29.8
Adjusted Pre-tax profit	18.3	14.6	73.5
Adjusted Net profit	15.1	11.3	59.7
Current lettable area (thousands m2)	114.9	101.0	103.7
Lettable area under development (thousands m2)	12.8	11.8	12.3

Cash flows
	Q3 18	Q3 17	31.12.17
Net cash flows from operating activities	17.9	18.8	42.3
Net cash flows from investing activities	-16.7	-23.8	-123.4
Net cash flows from financing activities	-1.2	25.4	241.6
Cash and cash equivalents at beginning of the period	108.3	26.5	34.1
Cash and cash equivalents at end of the period	108.1	47.1	195.2

Balance sheet	30.9.18	31.12.17
ASSETS
Investment property	456.4	338.6
Property, plant and equipment	66.6	52.6
Goodwill	95.0	72.3
Total non-current assets	619.2	463.5
Other current assets	31.3	26.3
Cash and bank deposits	108.1	195.2
Total current assets	139.4	221.5
TOTAL ASSETS	758.6	685.0

EQUITY AND LIABILITIES

Total equity	581.2	514.0
Long-term interest-bearing debt	86.0	89.7
Deferred tax liabilities	37.8	22.3
Total non-current liabilities	125.0	112.2
Total current liabilities	52.5	58.9
Total liabilities	177.4	171.0
TOTAL EQUITY AND LIABILITIES	758.6	685.0

1) Unaudited figures for 2018

2) Adjusted for non-recurring costs of NOK 0.0 million in Q3 2018, NOK 4.6 million in Q3 2017 and NOK 11.3 million in FY 2017

PROPERTY VALUE INCREASED BY 35% PER Q3 2018

As of 8 November SSG owns 46 properties with a total gross area of 68 400 and a potential lettable area of 47 600 m²
32 400 m² in operation
15 200 m²under development (4 900 m2 is leased to other businesses than self-storage)
In addition the Group is developing a property in Trondheim for a greenfield project1), with an estimated lettable area of 3 600 m²
Internal lease agreements at commercial terms are signed between OK Property and the operating companies in the Group
External valuations performed by Newsec conservative yields

1) The potential lettable area in Tiller of 3 600 m² is subject to building permits

STEADY GROWTH IN SHARE OF OWNED PORTFOLIO

SSG's strategy is to expand within owned facilities
28% of current lettable area in operation at the end of September 2018 was freehold
83 100 m²leased
31 800 m²owned
Freehold m² increased with 110% during 2017 and additional 47% in the first nine months of 2018

• 40 of a total of 96 facilities in operation (42%) were freehold as of September 2018

CURRENT LETTABLE AREA INCREASED BY 11 300 M² YTD 2018 – 15 200 M² IN PIPELINE

INCREASED CAPACITY BUT STABLE OCCUPANCY AND RENT

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

REVENUE DYNAMICS Q3 2018

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

2) Numbers in NOK million

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

Strong link between further growth in revenue and EBITDA

THE MARKET

THE SCANDINAVIAN SELF STORAGE MARKET AT A GLANCE

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

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THE NORWEGAIN MARKET IS UNDERDEVELOPED -AN INCREASING NEED FOR STORAGE GOING FORWARD

Growth in population

% of population living in cities

Growth in population in 5 largest cities1)

Growth in types of households 2013-2017

BNP-level in Norway is 50% higher than European average

1) Oslo, Bergen, Stavanger/Sandnes, Trondheim, Drammen

Source: SSB (Statistics Norway)

THE COMPANY

OUR HISTORY

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

311) temperate storage facilities across Scandinavia
One of the leading self-storage providers in the Scandinavian market
Located in Oslo, Stockholm and Copenhagen, due to open in Trondheim and Stavanger
63 700 m² CLA (4 900 m²is freehold)
Countrywide, discount-priced offering of self-serviced storage facilities in Norway
661) facilities located across Norway
37 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
51 300m² CLA ( 27 500 m² is freehold)

1) As of 8 November 2018

HIGH ACTIVITY IN 2017 – CONTINUING THE GROWTH IN 2018

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SSG IS INNOVATING ON THE WORLD´S #1 CRM PLATFORM

OK Minilager has been using Salesforce® since 2011, and the platform has been upgraded in 2018 with several new features
Minilager Norge was migrated to the platform in Q3 2018 and Minilageret will migrate in Q4 2018. CSS will move to the platform in 2019/2020
A scalable platform with ERP-and website integrations
360-degree view of the customers
Customer insights for better customers experiences
Innovation opportunities with AI and machine learning (Salesforce Einstein), Marketing automation (Salesforce Marketing Cloud) and IoT (Salesforce IoT)

SSG HAS A STRONG PLATFORM FOR FUTURE GROWTH

Country-wide offering with presence in Oslo, Bergen, Trondheim, Stavanger and 29 other cities and towns in Norway

PARTICULAR GROWTH POTENTIAL IN THE UNDERDEVELOPED NORWEGIAN MARKET

Focus on organic growth in Greater Oslo. Strengthening the position of both the CSS and OK Minilager brands in the region

Potential to enter 30+ smaller markets with population of 10.000<

Growth potential within existing smaller markets

Opportunity for M&A in selected markets

Illustration showing markets with immediate growth potential

15 200 M² IN POTENTIAL LETTABLE AREA1)

The potential m²is in freehold facilities in Norway
Rent income from expiring lease contracts from 4 900 m²of the 15 200 m²not yet built into self-storage units
10 000+ m² are planned to open during 2018
acquisition of Minilager Norge group

Lettable area under development

1) In addition there is a potential area of 3 600 m2 from the greenfield project in Trondheim that is not included in the KPIs of Q3 2018

2) As of 8 November 2018

Appendix

THIRD QUARTER AND YTD 2018 COMPREHENSIVE INCOME

Profit and loss statement Comments

(Amounts in NOK 1 000)		Unaudited For the three months ended 30 September	Unaudited For the three months ended 30 September	Unaudited For the nine months ended 30 September	Unaudited For the nine months ended 30 September	Audited For the twelve months ended 31 December
	Note	2018	2017	2018	2017	2017
Revenue	3	60 630	55 648	177 609	156834	212 143
Property-related expenses	3	23 544	23 4 48	72 697	71 531	94 994
Salary and other employee benefits	3	8 3 8 3	8 4 3 4	27 692	25 4 47	36 747
Depreciation		3 1 9 6	2 2 1 7	7954	4779	7 2 6 1
Other operating expenses	3	6 2 8 5	10 9 34	23 179	26 310	37 4 64
Operating profit before fair value adjustments		19 222	10 615	46 087	28767	35 677
Change in fair value of investment properties	6		755	2 500	13 928	29 831
Operating profit after fair value adjustments		19 222	11 370	48 5 87	42695	65 5 08
Finance income		174	$-102$	786	385	1 3 3 3
Finance expense		1 0 9 3	1 2 6 3	3680	3 3 0 8	4626
Profit before tax		18 30 3	10 005	45 693	39772	62 215
Income tax expense		3 1 8 7	2 2 8 3	9537	9757	11 996
Profit for the period		15 116	7722	36 156	30 015	50 219
Total non-recurring costs			4600	1942	5500	11 253

Financial development affected by the acquisition of Minilageret AS 30 June 2017 and the consolidation of Minilager Norge group from 1 January 2018
Revenue for Q3 2018 was NOK 60.6 million, up NOK 5.0 million from Q3 2017. The increase is due to income from Minilageret and Minilager Norge group, in addition to growth in rentals
Operating profit in Q3 2018 was NOK 19.2 million, up NOK 8.6 million from Q3 2017. No nonrecurring items adjusted for in Q3 2018.
The fair value of investment property is based on external valuations in combination with management estimates and judgments

YTD 2018– FINANCIAL POSITION

Financial position Comments

(Amounts in NOK 1 000)		Unaudited	Audited
		30 September 31 December
ASSETS		2018	2017
Non-current assets	Note
Investment property	6	456 423	338 631
Property, plant and equipment		66 602	52 125
Goodwill		94 932	72 272
Other intangible assets		1 201	493
Deferred tax assets
Total non-current assets		619 158	463 521
Current assets
Inventories		1 3 6 0	1434
Trade and other receivables		13 0 8 4	11 455
Other current assets		16859	13 3 9 7
Cash and bank deposits		108 141	195 224
Total current assets		139 444	221 510
TOTAL ASSETS

(Amounts in NOK 1 000)	Unaudited	Audited
	30 September 31 December
EQUITY AND LIABILITIES	2018	2017
Equity
Issued share capital 7	6573	6369
Share premium	427 931	396 416
Other reserves	$-241$	363
Retained earnings	146 966	110 809
Total equity	581 229	513 957
LIABILITIES
Non-current liabilities
Long-term interest-bearing debt 8	85 972	89 690
Other financial liabilities	896
Deferred tax liabilities.	37 842	22 289
Provisions
Obligations under finance leases	181	214
Other non-current liabilities
Total non-current liabilities	124 891	112 193
Current liabilities
Short-term interest-bearing debt 8	4750	4750
Trade and other payables	11 274	10 282
Income tax payable	670	1 6 9 9
Other taxes and withholdings	5 6 3 3	4789
Provisions
Obligations under finance leases	77	312
Other current liabilities	30 078	37 049
Total current liabilities	52 482	58881
Total liabilities	177 373	171 074
TOTAL EQUITY AND LIABILITIES	758 602	685 031

Total assets of NOK 759 million
Investment property increased by NOK 118 million since 31 December 2017
Cash and bank deposits reduced due to acquisition of Minilager Norge group, purchase of investment properties (100% cash), and down payment of loan in Minilager Norge to DNB. New loan facility with Handelsbanken were signed in July 2018.
Increased equity through issue of ordinary shares and result for the period
Positive net interest-bearing debt was NOK 17.4 million
Equity ratio was 77%
Negative working capital due to invoicing of customers in advance and stable cost

YTD 2018 – CASH FLOW

Condensed consolidated statement of cash flows Comments

	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	For the three	For the three	For the nine	For the nine
(Amounts in NOK 1 000) Note	months ended	months ended	months ended 30 September 2018 30 September 2017 30 September 2018	30 September 2017	months ended For the year ender 31 December 201
Cash flow from operating activities
Profit before tax	18 303	10 004	45 693	39772	62 215
Income tax paid	153		$-1700$	$-7701$	$-817$
Adjustment for net interests paid	- 154	289	$-736$	289	242
Depreciation	3 1 9 6	2 2 1 7	7954	4779	7 2 6 1
Gain/loss on disposal of property, plant and equipment		11		144	148
Change in fair value of investment property 6		- 755	$-2500$	$-13928$	$-2983$
Change in trade and other receivables	$-1112$	1748	$-1548$	1 2 7 1	$-73$
Change in trade and other payables	$-1071$	6073	660	1811	1 466
Change in other current assets	$-2821$	1052	$-3344$	5052	5 0 4 7
Change in other current liabilities	1 3 9 6	$-1877$	$-662$	- 49	4 6 2 3
Net cash flow from operating activities	17890	18762	43817	31 440	42 268
Cash flow from investing activities
Payments for investment property	$-4686$	$-5044$	$-51442$	$-32890$	$-4216$
Payments for property, plant and equipment	$-6045$	$-2608$	$-15368$	$-6629$	$-1147$
Net cash outflow on acquisition of subsidiaries	$-6000$	$-16129$	$-4545$	$-62265$	$-6976$
Net cash outflow from disposal of subsidiaries
Net cash flow from investing activities	$-16731$	$-23781$	$-112264$	$-101784$	$-12339$
Cash flow from financing activities Net proceeds from issue of equity instruments of the
Company				95 865	287 416
Proceeds from borrowing		95 000		95 000	95 000
Repayment of borrowings	$-1187$	$-69631$	$-17878$	$-107790$	$-140.84$
Net cash flow from financing activities	$-1187$	25 369	$-17878$	83 075	241 576
Net change in cash and cash equivalents	$-28$	20 350	$-86325$	12731	160 450
Cash and cash equivalents at beginning of the period	108 324	26 473	195 224	34 115	34 115
Effect of foreign currency rate changes on cash and cash equivalents	$-155$	230	$-758$	207	659
Cash and equivalents at end of the period	108 141	47 053	108 141	47 053	195 224

Operating activities

Strong cash flow
Invoicing of customers in advance predictable and stable costs

Investing activities

Acquisition of Minilager Norge group Q1 2018 and settlement of contingent consideration in Q3 2018
Acquisition of 7 investment properties and 1 company assets aqusitions (cash) the first nine months 2018
Establishment and fit out new facilities and expanisons
Maintenance is posted as property cost

AI Terminal

Self Storage Group

3740_rns_2018-11-08_9709ffa4-d9db-4eb5-86de-7661807e4768.pdf