Self Storage Group ASA Fourth quarter 2017

15 February 2018

GROUP HIGHLIGHTS – FOURTH QUARTER 2017

Revenues in Q4 2017 NOK 55.3 million, up from NOK 50.8 million in Q4 2016
Adjusted EBITDA in Q4 2017 of 15.1 million1) , up from NOK 9.0 million in Q4 2016
Revenues for the full year of 2017 NOK 212.1 million
Adjusted EBITDA for the full year of 2017 NOK 54.2 million1)
Positive change in fair value of investment properties of NOK 15.9 million to a total of NOK 338 million
Privat placement of NOK 200 million, successful completion of IPO
Cash position NOK 195 million

KEY FIGURES – Q4 2017

Current lettable area (CLA) 103 700 m² , up from 93 800 m²in Q4 2016
2 new facilities and expansions adding a total of 2 700 m²CLA
Acquisition of 4 properties with approximately 2 200 m²lettable area
Average rent1) 2 337 NOK pr m²
Occupancy1) 84,1%
Total number of facilities 84

GROUP HIGHLIGHTS – SUBSEQUENT EVENTS

Completed transaction of the Minilager Norge group adding 4 sites to the CSS portfolio and 4 300 m²CLA
Acquisition of 3 new properties with a total lettable area of 3 300 m²
Signed agreements to acquire 2 properties with a total lettable area 1 400 m²
As of 15 February 2018 SSG has 108 000 m² CLA and 17 000 m² lettable area under development – in total 125 000 m²

KEY FIGURES – Q4 2017 and YTD 2017

(NOK million)

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KEY FIGURES¹ – Q4 2017

(NOK million)

P&L	Q4'17	Q3'17	Q4'16	FY '17	FY '16
Revenue	55.3	55.6	50.8	212.1	80.9
costs2 Total operating	40.2	38.2	41.8	158.0	54.9
Adjusted EBITDA	15.1	17.4	9.0	54.2	26.0
Adjusted EBIT	12.7	15.2	7.3	46.9	21.8
Change in fair value of investment properties	15.9	0.8	17.4	29.8	17.8
Adjusted Pre-tax profit	28.2	14.6	24.3	73.5	38,6
Adjusted Net profit	25.6	7.6	18.0	59.7	28.8
Current lettable area (thousands m2)	103.7	101.0	93.8	103.7	93.8
Lettable area under development (thousands m2)	12.3	11.8	N/A	12.3	N/A

Cash flows
	31.12.17	31.12.16
Net cash flows from operating activities	42.3	34.9
Net cash flows from investing activities	-123.4	-192.7
Net cash flows from financing activities	241.6	185.4
Cash and cash equivalents at beginning of the period	34.1	6.6
Cash and cash equivalents at end of the period	195.2	34.1

Balance sheet	31.12.17	31.12.16
ASSETS
Investment property	338.6	163.8
Property, plant and equipment	52.6	45.3
Goodwill	72.3	52.0
Total non-current assets	463.5	261.0
Other current assets	26.3	27.3
Cash and bank deposits	195.2	34.1
Total current assets	221.5	61.4
TOTAL ASSETS	685.0	322.4

EQUITY AND LIABILITIES
Total equity	515.8	155.0
Long-term interest-bearing debt	89.7	23.2
Deferred tax liabilities	22.3	4.3
Total non-current liabilities	112.2	28.1

Total current liabilities 57.1 139.3 Total liabilities 169.3 167.4

TOTAL EQUITY AND LIABILITIES 685.0 322.4

2) Adjusted for IPO and non-recurring items of NOK 3,9 million in Q4 2017, NOK 4,6 million in Q3 2017 and NOK 0,9 million in Q2 2017

INCREASING REVENUE AND EBITDA-MARGIN

CSS

Numbers in MNOK

1) Minilageret AS is reported with OK Minilager from 1/7-2016

HIGH ACTIVITY IN 2017 – CONTINUING THE GROWTH

Acquired 19 000 m2
Raised NOK 300 million in gross proceeds
Digital marketing and online booking
CRM-project
Optimising CSS
Integration of Minilageret
Establishment of HQ-functions

CLA INCREASED BY 10 000 M² DURING 2017 – 21 000 M² IN PIPELINE

MORE THAN 17 000 M² IN POTENTIAL LETTABLE AREA

10 650 potential square meters in newly acquired facilities
6 350 potential square meters in existing facilities
All potential square meters in freehold facilities
Rent income from expiring lease contracts from 5 300 m²of the 17 000 m²not yet bulid into self-storage units
10 000+ square meters is planned to open during 2018

STEADY GROWTH IN SHARE OF OWNED PORTFOLIO

SSG's strategy is to expand within owned facilities
21% of current lettable area at the end of Q4 2017 was freehold
81 992 m²leased
21 676 m²owned
Freehold square metere has increased with 110% during 2017
14 of 16 new facilities established in 2017 was freehold
33% of total lettable area as of 15.02.2018 is freehold

PROPERTY VALUE INCREASED BY 107% IN 12 MONTHS

As of 31.12.2017 SSG owns 35 properties
Internal lease agreements at commercial terms are signed between OK Property and the operating companies in the Group
External valuations conservative yields

REVENUE DYNAMICS Q4-2017

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

Strong link between further growth in revenue and EBITDA

ACQUISITIONS IN THE QUARTER

Acquisition of 4 new properties with a CLA potential of 2 200 m²

Signed: Nov 1st 2017

Type: Company asset acquisiton

Potential lettable area: 1,000 m²

Location:

Located in Gressvik, just outside of Fredrikstad. With this new location, we also cover the western part of Fredrikstad. Fredrikstad is part of the 6th most populous urban area in Norway.

Signed: Oct 1st 2017

Type: Property (building)

Potential lettable area: 400 m²

Location: Mandal is a small city about 45 minutes west of Kristiansand. Approx. 15.000 inhabitants within a 5 mile radius

Signed: Dec 1st 2017 Type: Property (building)

Potential lettable area: 290 m²

Location: Our third location in Kristiansand, and our second in Mjåvann, an industrial area just outside Kristiansand.

THE COMPANY

SELF STORAGE GROUP AT A GLANCE

Provider of self storage solutions to both individuals and businesses through (i) OK Minilager and (ii) City Self Storage

Operations in Norway, Sweden and Denmark

Focus on cost effective operations through self service/ automated storage facilities

As of 15 February 2018 the SSG has 108 000 m² CLA and 17 000 m² lettable area under development – in total 125 000 m²

18 300 storage rooms in 30 cities and towns – 89 facilities

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 capital cities

31¹ temperate storage facilities across
One of the leading self-storage providers in the Scandinavian market
Located in Oslo, Stockholm and Copenhagen
62 930 m² of lettable storage space (4 974 m² freehold)
Countrywide, discount-priced offering of self-serviced storage facilities in Norway
58² facilities located across Norway
28 drive-in storage facilities and 30 temperate storage facilities
2 nd largest player in Norway, behind CSS
Self service, open 24 hr/day and 7 days a week
45 038 m² of lettable storage space (21 225 m² freehold)

1 As of 15 February 2018. Including Minilager Norge group

²As of 15 February 2018. Including Minlageret AS

SSG HAS A STRONG PLATFORM FOR FUTURE GROWTH…

...AND STRENGTHENED THROUGH THE RECENT ACQUISITION OF MINILAGER NORGE

Geographic presence Minilager Norge

Portfolio of 4 attractive locations in the Østfold county
3 freeholds and 1 leasehold with a call option
Strenghtening the Groups position in Østfold
All MinilagerNorge facilities will be rebranded to CSS during 2018
An opportunity to develop and add more square meters to the Moss site.

OUR HISTORY

THE MARKET

UNTAPPED POTENTIAL FOR SELF STORAGE IN THE NORDICS

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

ALL FACTORS SUGGESTING INCREASING DEMAND FOR STORAGE GOING FORWARD

Private consumption and 5 year growth in disposable income1)2)

Strong urbanization trend... ...particularly in the Nordics

% of population living in cities

Population growth ('13-'25e CAGR) in selected European cities

Comments

Scandinavian countries ranking high in terms of consumption per capita
In 2015 net household disposable income in Norway, Sweden and Denmark grew with 4.3%, 2.5% and 2.5% respectively
Spending levels expected to continue growing
Oslo, Stockholm and Copenhagen expected to remain among the fastest growing capitals in Europe

Source: The World Bank, OECD Data, Eurostat, SSB, FEDESSA European Self Storage Annual Survey 2016, Arctic Securities Research

Notes: 1) Private consumption per capita calculated using constant 2010 prices and World Bank population estimates

2) Growth rates based on average growth in real household net disposable income for the period 2011-2015

URBANISATION AND RISING HOUSING PRICES HAVE LEAD TO NEW BUILDING STANDARDS WITH LESS STORAGE SPACE

More functional layout with focus on practical solutions and storage space
«Closed kitchen» with necessary storage space
Larger bedrooms and bathrooms
Common areas in basements were previously reserved for storage space
Smaller apartments on the back of rapidly rising housing prices, especially in the larger cities
«Open kitchen» solution with less storage space
No link between size of apartment and storage space
The required 3 sq.m. storage space has become a «walk-in closet» and may even be eliminated following TEK17

Appendix

FOURTH QUARTER AND YTD 2017 COMPREHENSIVE INCOME

Profit and loss statement1) Comments

NOK 1000
	For the three months ended	For the three months ended	For the twelve months ended	For the twelve months ended
	31 December 2017	31 December 2016	31 December 2017	31 December 2016
Revenue	55 308	50 820	212 143	80 877
Property-related expenses	23 469	24 173	94 994	33 829
Salary and other employee benefits	9 496	8 891	34 944	11 340
Depreciation	2 482	1 642	7 261	4 224
Other operating expenses	11 146	8 785	37 464	9 687
Operating profit before fair value adjustments	8 715	7 329	37 480	21 797
Change in fair value of investment properties	15 903	17 392	29 831	17 832
Operating profit after fair value adjustments	24 618	24 721	67 311	39 629
Finance income	947	224	1 333	233
Finance expense	1 318	673	4 626	1 247

Profit before tax	24 247	24 272	64 018	38 615
Income tax expense	2 240	6 249	11 996	9 785
Profit for the period	22 007	18 023	52 022	28 830
Earnings per share
Basic (NOK)	0,37	0,75	1,03	1,24
Diluted (NOK)	0,36	0,75	1,02	1,24
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or loss
- currency translation difference	49	-114	477	-114
Other comprehensive income for the period, net of income tax	49	-114	477	-114
Total comprehensive income for the period	22 056	17 909	52 499	28 716

Financial development affected by the acquisition of the City Self-Storage companies 28 September 2016 and the acquisition of Minilageret AS 30 June 2017
Revenue for Q4 2017 was NOK 55.6 million, up NOK 4.5 million from Q4 2016. The increase is due to income from Minilageret and growth in rentals in the Norwegian market
Operating profit in Q4 2017 was impacted by transaction costs related to the acquisition of Minilageret AS and extraordinary costs related to the IPO. In total extraordinary costs amounted to NOK 3.9 million in Q4 and NOK 9.4 million YTD
The fair value of investment property is based on external valuations in combination with management estimates and judgments

YTD 2017– FINANCIAL POSITION

Financial position 1) Comments

(Amounts in NOK 1 000)

	31 December	31 December
ASSETS	2017	2016
Non-current assets
Investment property	338 631	163 738
Property, plant and equipment	52 618	45 291
Goodwill	72 272	51 985
Total non-current assets	463 521	261 014
Current assets
Inventories	1 434	1 623
Trade and other receivables	11 455	10 577
Other current assets	13 397	15 078
Cash and bank deposits	195 224	34 115
Total current assets	221 510	61 393
TOTAL ASSETS	685 031	322 407

EQUITY AND LIABILITIES	31 December 2017	31 December 2016
Equity
Issued share capital	6 369	395
Share premium	396 416	89 863
Other reserves	363	-114
Retained earnings	112 612	64 903
Total equity	515 760	155 047
Liabilities
Non-current liabilities
Long-term interest-bearing debt	89 690	23 179
Deferred tax liabilities	22 289	4 383
Obligations under finance leases	214	526
Total non-current liabilities	112 193	28 088
Current liabilities
Short-term interest-bearing debt	4 750	86 169
Trade and other payables	10 282	8 743
Income tax payable	1 699	8 171
Other taxes and withholdings	4 789	3 912
Obligations under finance leases	312	384
Other current liabilities	35 246	31 893
Total current liabilities	57 078	139 272
Total liabilities	169 271	167 360
TOTAL EQUITY AND LIABILITIES	685 031	322 407

Total assets increased to NOK 685 million at the end of Q4 2017 following acquisition of investment properties and balance sheet consolidation
Increased equity through issue of ordinary shares and result for the period
Positive net interest-bearing debt was NOK 101 million
Other current liabilities increased due to settlement of Minilageret
Equity ratio was 75%
Negative working capital due to invoicing of customers in advance and stable cost

YTD 2017 – CASH FLOW

Condensed consolidated statement of cash flows1) Comments

(Amounts in NOK 1000)	For the twelve months ended 31 December 2017	For the twelve months ended 31 December 2016

Cash flows from operating activities
Profit before tax	64 018	38 615
Income tax paid	-8 170	-2 748
Interests not paid	626	663
Financial lease	-384
Depreciation	7 261	4 224
Gain/loss on disposal of property, plant and equipment	148
Change in fair value of investment property	-29 831	-17 832
Change in trade and other receivables	-733	-390
Change in trade and other payables	1 466	4 615
Change in other current assets	5 047	6 279
Change in other current liabilities	2 820	1 484
Net cash flows from operating activities	42 267	34 910
Cash flows from investing activities
Payments for investment property	-42 163	-52 813
Payments for property, plant and equipment	-11 471	-2 972
Proceeds from disposal of property, plant and equipment	-	561
Net cash outflow on acquisition of subsidiaries	-69 760	-137 482
Net cash flows from investing activities	-123 393	-192 706

Cash flows from financing activities
Proceeds from issue of equity instruments of the Company	287 416 95 000	90 000 128 291
Proceeds from borrowings Repayment of borrowings	-140 840	-32 904
Net cash flows from financing activities	241 576	185 387

Net change in cash and cash equivalents	160 450	27 591
Cash and cash equivalents at beginning of the period	34 115	6 661
Effect of foreign currency rate changes on cash and cash equivalents	659	-137
Cash and equivalents at end of the period	195 224	34 115

Operating activities

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

Investing activities

Acquisition of Minilageret AS
Acquisition of 7 investment properties and 3 company assets aqusitions
Low capex as maintenance is posted as property cost

Financing activities

Private placement in January and October
New loan facility with Handelsbanken in July
Repayment of shareholders

AI Terminal

Self Storage Group

3740_rns_2018-02-15_7017381f-8eb5-46ca-9797-b86f52c639c8.pdf