Self Storage Group — Interim / Quarterly Report 2019

May 8, 2019

Self Storage Group ASA First quarter 2019

8 May 2019

GROUP HIGHLIGHTS – FIRST QUARTER 2019

• Revenues in Q1 2019 of NOK 61.6 million, up from NOK 58.3 million in Q1 2018
• EBITDA in Q1 2019 of NOK 33.9 million, up from NOK 14.7 million in Q1 2018
• Adjusted EBITDA1) ex IFRS 16 in Q1 2019 of NOK 19.3 million, up from NOK 15.6 million in Q1 2018
• Pre-tax profit in Q1 2019 of NOK 12.8 million, up from NOK 12.0 million in Q1 2018
• Adjusted pre-tax profit1) ex IFRS 16 in Q1 2019 of NOK 15.9 million, up from NOK 12.9 million in Q1 2018,
• Average occupancy in Q1 2019 for sites with more than 12 months of operation was 83.5% (84.1%) with an average rent per m² of NOK 2 353 per year (2 328 NOK)
• Acquisition of one property in Stavanger in the quarter with a total potential lettable area of 700 m²
• Current lettable area end of March 2019 was 117 500 m² , up from 110 000 m² end of March 2018
• Total value of owned investment property end March 2019 of NOK 537.7 million
• Cash position end of March 2019 of NOK 129.5 million

KEY PERFORMANCE INDICATORS – FIRST QUARTER 2019

KEY FIGURES – FIRST QUARTER 2019

(NOK million)

KEY FIGURES

	2019	2018	2018
	Q1	Q1	FY
Revenue	61.6	58.3	238.4
Total operating costs1)	-42.4	-42.6	-162.6
Adjusted EBITDA ex IFRS 16	19.3	15.6	75.7
Effect IFRS 16	+15.2	0	0
Adjusted EBITDA	34.4	15.6	75.7
Non-recurring costs	0.5	0.9	1.9
Reported EBITDA	33.9	14.7	73.8

ADJUSTED EBITDA Q1 2017-Q1 2019

KEY FIGURES1) – Q1 2019

(NOK million)

P&L	Q1 18	Operational change	Impact IFRS16	Q1 19	FY 18	Investment property	524.5	537.7	0.0
						Right-of-use assets (lease)	0.0	444.7	444.7
Revenue	58.3	+3.4	0.0	61.6	238.4	Property, plant and equipment	71.8	74.8	0.4
costs2) Total operating	-42.6	+0.2	+15.2	-27.2	-162.6
Adjusted EBITDA	15.6	3.6	15.2	34.4	75.7	Goodwill	94.6	94.7	0.0
Adjusted EBIT	13.3	3.6	15.1	32.0	65.2	Total non-current assets	690.9	1 152.9	445.1
Change in fair value of inv. property	+0.5	-0.1	0.0	+0.4	38.2	Other current assets	37.3	30.3	-2.6
Change in fair value of lease property	0.0	0.0	-13.2	-13.2	0.0	Cash and bank deposits	122.2	129.5	0.0
Adjusted Pre-tax profit	12.9	3.0	-2.6	13.3	100.3	Total current assets	159.5	159.8	-2.6
Adjusted Net profit	9.9	3.8	-2.7	11.0	81.1	TOTAL ASSETS	850.4	1 312.7	442.5
Current lettable area (thousands m2)	110.0	+7.5	0.0	117.5	117.0
Lettable area under development (thousands m2)	16.2	-2.7	0.0	13.5	13.4	EQUITY AND LIABILITIES
Cash flows						Total equity	625.1	635.0	-2.6
Net cash flows from operating	7.9	+16.1	+15.2	39.2	66.0	Long-term interest-bearing debt	118.0	115.1	0.0
activities						Long-term obligations under	0.1	403.8	403.7
Net cash flows from investing	-70.1	+57.7	0.0	-12.4	-157.5	finance leases
activities						Deferred tax liabilities	34.9	35.8	0.0
Net cash flows from financing activities	-2.4	-1.4	-15.2	-19.0	18.6	Other non-current liabilities	1.0	1.0	0.0
Cash and cash equivalents at	195.2	-73.0	0.0	122.2	195.2	Total current liabilities	71.4	122.3	41.4
beginning of the period						Total liabilities	225.4	677.7	444.1
Cash and cash equivalents at end of the period	130.4	-0.9	0.0	129.5	122.2	TOTAL EQUITY AND LIABILITIES	850.4	1 312.7	442.5

Total equity 625.1 635.0 -2.6 Long-term interest-bearing debt 118.0 115.1 0.0 0.1 403.8 403.7 Deferred tax liabilities 34.9 35.8 0.0 Other non-current liabilities 1.0 1.0 0.0 Total current liabilities 71.4 122.3 41.4 Total liabilities 225.4 677.7 444.1 TOTAL EQUITY AND LIABILITIES 850.4 1 312.7 442.5

ASSETS

Balance sheet

2) Adjusted for non-recurring costs of NOK 0.5 million in Q1 2019, NOK 0.9 million in Q1 2018, and NOK 1.9 million in FY 2018

31 Dec 18

31 Mar 19

Impact IFRS 16

STEADY GROWTH IN SHARE OF OWNED PORTFOLIO

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

• SSG's strategy is to expand within owned facilities
• 30% of current lettable area in operation at the end of March 2019 was freehold
• Freehold m² increased with 110% during 2017 and additional 62% during 2018
• SSG plans to open 10 000 m²in 2019, mainly owned
• 441) of a total of 102 facilities in operation (43%) were freehold as of March 2019

31.3.2019 m2	Current lettable area	Under development	Total lettable area
Owned facilities	35 800	13 500	49 300
Leased facilities	81 700	0	81 700
SUM	117 500	13 500	131 000

OWNED PROPERTY -PROPERTY VALUE INCREASED BY 25% FROM Q1 2018

SSG owns 50 properties with a total gross area of 76 600 m²

31.3.2019 m2	Gross area	Total lettable area	Current lettable area	under 1) Area development
Facilities in operation	72 000	46 200	35 800	10 400
Facilities not yet opened	4 600	3 100	0	3 100
Sum ex Tiller	76 600	49 300	35 800	13 500
Tiller 2)	5 400	3 600	0	3 600

• The signed agreement for the landmark development property at Alnabru,Oslo, has an estimated lettable area2) of 4 900 m²
• Internal lease agreements at commercial terms are signed between OK Property and the operating companies in the Group
• External valuations was performed by Newsec in December 2018 – no indications of change in Q1 2019

Owned portfolio Total investment property of 537.7 MNOK

Gross area pr region and yield as of 31.12.18

¹⁾ 2 300 m2 leased to office-tenants on expiring contracts

²⁾ The potential lettable area is subject to building permits

CURRENT LETTABLE AREA OF 117 500 M² – 13 500 M² IN PIPELINE1)

1) In addition there is a potential lettable area of 3 600 m² from the greenfield project in Trondheim and 4 900 m² from the greenfield project in Alnabru, Oslo, that is not included in the KPIs of Q1 2019, pending building permits

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DEVELOPMENT IN CAPACITY, OCCUPANCY AND RENT

• Occupancy in CSS Norway and OKM has decreased due to expansions of lettable area during the year
• Positive trend in CSS Sweden and CSS Denmark
• Rent pr m² is stable in OK M and CSS Norway, slightly reduced prices in Denmark and Sweden

AVERAGE OCCUPANCY1) AND RENT1) CURRENT LETTABLE AREA

REVENUE DYNAMICS Q1 2019

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 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 number of apartments

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

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

Source: SSB (Statistics Norway)

THE COMPANY

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

• 321) 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
• 64 300 m² CLA (5 600 m²is freehold)

Countrywide, discount-priced offering of self-serviced storage facilities in Norway

• 701) facilities located across Norway
• 40 temperate storage facilities and 30 drive-in storage facilities
• 2 nd largest player in Norway, behind CSS
• Self service, open 24 hr/day and 7 days a week
• 53 200m² CLA ( 30 200 m² is freehold)

OUR HISTORY

1993 •First CSS site established in Norway, investment in	•Selvaag into the business and CSS	1998 Group entered	•OK Minilager was	2009 established by Gustav and	Minilager	2016 •Ferncliff invested in OK		•SSG established	2017
"Safe Mini Lager" in Sweden	expanded to Denmark		Fabian Søbak		CSS	•OK Minilager acquired		•Listed on OSE
	Q1-17	Q2-17	Q3-17	Q4-17	Q1-18	Q2-18	Q3-18		Q4-18	Q1-19
Private placements	100 MNOK		MNOK1 200
Acqusition of companies	(9 facilities)
						(4 facilities)
Acqusition of	2 2	2 0	6 4	10 4	15 5	17 2	17 0	21 4	22 1
properties	Q1-17	Q2-17	Q3-17	Q4-17	Q1-18	Q2-18	Q3-18	Q4-18	Q1-19
			Facilities acquired in the quarter			Total number of facilities acquired since 2017

MARKETING, SALES AND SERVICE

• Complexity and cost of digital marketing Increased barrier to entry
• Investments in Search Engine Optimization and Conversion Rate Optimization
• Aligning marketing, sales and service with Salesforce, the World´s leading CRM-platform
• Leveraging customer data to deliver personalized customer experiences
• Innovations in omni-channel and self-service
• Strategy to increase brand awareness with highly visible facilities and increased online presence

ACQUISITIONS IN THE QUARTER

Acquisition of 1 new property in the quarter

STAVANGER- HILLEVÅG

Date¹: 02.01.2019

Type: Company asset acquisiton

Potential lettable area: 700 m²

Location:

Located in Hillevåg, just outside Stavanger City Centre. Hillevåg will be SSG´s 8th facility in the Greater Stavanger Region. With this acquisition we strengthen our position as the market leader in region. Stavanger is the 4th largest city in Norway, and the most densely populated municipality.

Brand:

The property will be operated under the OK Minilager brand

The facility opened in April 2019

DEVELOPMENT PIPELINE – GREENFIELD PROJECTS

SITE	LOCATION	STATUS	POTENTIAL CLA (Approx.)	EXPECTED OPENING	CONCEPT
Oslo – Breivollveien	Landmark location with unique visibility	Site acquired in April 2019 Planning application to be submitted in Q3 2019	4 900 m2	2021
Trondheim – Tiller	Prime location with great visibility	Site acquired in June 2018 Planning application to be submitted in Q2 2019	3 600 m2	2020
Moss - Nøkkeveien	Prime location with great visibility	Construction in progress (extension of existing facility)	1 200 m2	Q4 2019

SSG HAS A STRONG PLATFORM FOR FUTURE GROWTH

13 500 M² IN POTENTIAL LETTABLE AREA1)

• The potential m²is in freehold facilities in Norway
• Rent income from expiring lease contracts from 2 300 m²of the 13 500 m²not yet built into self-storage units
• 10 000+ m² are planned to open during 2019

Lettable area under development

1) In addition there is a potential lettable area of 3 900 m²from the greenfield project in Trondheim and 4 900 m² from the greenfield project at Alnabru in Oslo that is not included in the KPIs of Q1 2019

STRATEGIC SUMMERY

• Focus on occupancy growth (target 90%)
• Investments in CRM, automation and digital platforms
• Creating Great customer experiences at every touchpoint
• Lean operation and self-service
• Grow our freehold portfolio in selected urban markets
• Focus on the larger urban areas in Norway
• Looking to selectively acquire existing self storage providers in Scandinavia

Illustration of a greenfield project developed under the CSS brand

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 2018 for Self Storage Group. 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 forwardlooking 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

Nedre Skøyen vei 24 0276 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
12 220 000	18.6 %	FEOK AS	Norway
9 565 000	14.6 %	FABIAN HOLDING AS	Norway
9 565 000	% 14.6	CENTRUM SKILT AS	Norway
4 080 000	6.2 %	FERNCLIFF INVEST AS	Norway
3 201 598	4.9 %	HOLTA INVEST AS	Norway
3 197 630	4.9 %	EQUITY AS VATNE	Norway
2 376 147	3.6 %	SKAGEN M2 VERDIPAPIRFOND	Norway
1 850 000	2.8 %	HNDLSBKN NORDISKA SMABOLAGSFOND	Sweden
1 605 815	2.4 %	HSBC EUROPEAN TRUST TTEE MARLB	United Kingdom
1 498 432	% 2.3	EATS AS	Norway
1 436 294	2.2 %	VERDIPAPIRFONDET DNB SMB	Norway
1 368 752	2.1 %	FDLTY SL PF: FDLTY INTL RL EST FD	United States
1 127 521	% 1.7	STOREBRAND VEKST VERDIPAPIRFOND	Norway
1 084 245	1.6 %	KLAVENESS MARINE FINANCE AS	Norway
1 071 428	1.6 %	Danske Vekst Invest Norge	Norway
675 000	1.0 %	Taaleri Nordic Value Equity Fund	Finland
594 566	0.9 %	GRANDEUR PEAK GLOBAL REACH FUND	United States
532 000	0.8 %	SABINUM AS	Norway
505 770	0.8 %	BERNT HOLDING AS	Norway
419 269	% 0.6	VJ INVEST AS	Norway
57 974 467	88.2 %

Shareholder structure

Total number of shares: 65 734 111

FIRST QUARTER 2019 COMPREHENSIVE INCOME

Profit and loss statement Comments

(Amounts in NOK 1 000)	Note	Unaudited For the three months ended 31 March 2019	Unaudited For the three months ended	Audited For the twelve months ended 31 March 2018 31 December 2018
Revenue	3	61 637	58 285	238 361
Lease expenses	2,3	3 1 0 8	18 057	71 451
Property-related expenses	3	6974	7 2 8 7	25 4 25
Salary and other employee benefits	3	9750	9 3 6 7	37 403
Depreciation		2467	2 3 8 6	10527
Other operating expenses	3	7857	8857	30 311
Operating profit before fair value adjustments		31481	12 331	63 244
Change in fair value of investment properties	5	406	490	38 2 23
Change in fair value of leasehold properties	2,5	$-13181$
Operating profit after fair value adjustments		18706	12821	101467
Finance income		158	552	1511
Finance expense	2	6059	1 373	4632
Profit before tax		12805	12001	98 34 6
Income tax expense		2 2 1 3	2811	18856
Profit for the period		10 592	9 1 9 0	79490
Total non-recurring costs		500	920	1942

• Financial development is highly impacted by the implementation of IFRS 16 from 1 January 2019
• Revenue for Q1 2019 was NOK 61.6 million, up NOK 3.4 million from Q1 2018. The increase is related to growth in lettable area and rentals
• Operating profit in Q1 2019 of NOK 31.5 million was impacted by the implementation of IFRS 16. The increase from Q1 2018 was NOK 19.2 million, whereof NOK 15.1 million relates to the implementation of IFRS 16. In total non-recurring items amounted to NOK 0.5 million in Q1 2019 and NOK 0.9 million in Q1 2018
• The fair value of investment properties is based on external valuations on owned properties and fair value of leasehold properties relates value adjustment due to passage of time of recognised leases

YTD 2019 – FINANCIAL POSITION

Financial position Comments

(Amounts in NOK 1 000)		Unaudited	Audited
			31 March 31 December
ASSETS		2019	2018
Non-current assets	Note
Investment property	5	537 714	524 505
Right-of-use assets - leasehold property	2.5	444 659
Property, plant and equipment		74 225	70 405
Goodwill		94737	94 639
Other intangible assets		1 544	1376
Total non-current assets		1152879	690 925
Current assets
Inventories		1 509	1 270
Trade and other receivables		14 0 37	13 4 21
Other current assets		14708	22 5 98
Cash and bank deposits		129 522	122 228
Total current assets		159 776	159 517
TOTAL ASSETS		1312655	850 442

	(Amounts in NOK 1 000)		Unaudited	Audited
ıber				31 March 31 December
2018	EQUITY AND LIABILITIES		2019	2018
	Equity
505	Issued share capital	6	6573	6573
	Share premium		427 889	427 889
405	Other reserves		$-360$	290
639	Retained earnings		200 891	190 299
376	Total equity		634 993	625 051
925	LIABILITIES
	Non-current liabilities
270	Long-term interest-bearing debt	7	115 053	118 023
421	Long-term obligations under finance leases	2.7	403 798	143
598	Other financial liabilities		756	873
228	Deferred tax liabilities		35 7 94	34 911
517	Total non-current liabilities		555 401	153 950
442	Current liabilities
	Short-term interest-bearing debt	7	11 750	11 750
	Short-term obligations under finance leases	2.7	44 104	74
	Trade and other payables		7893	11 404
	Income tax payable		12 690	11 647
	Other taxes and withholdings		4926	5 2 9 1
	Other current liabilities		40 898	31 275
	Total current liabilities		122 261	71 441
	Total liabilities		677 662	225 391
	TOTAL EQUITY AND LIABILITIES		1 3 1 2 6 5 5	850 442

• Total assets of NOK 1 313 million
• Owned investment property increased by NOK 13.2 million since 31 December 2018 and implementation of IFRS 16 with recognition of leasehold property amounted to NOK 444.7 million end March
• Cash and bank deposits increased with NOK 7.3 million
• Increased equity through result for the period
• Positive net interest-bearing debt was NOK 2.7 million. Increased obligations under financial lease due to implementation of IFRS 16, with NOK 447.9 million in the balance as of 31 March 2019
• Equity ratio was 48%
• Negative working capital due to invoicing of customers in advance and stable costs

YTD 2019 – CASH FLOW

Condensed consolidated statement of cash flows

Comments
----------	--

Operating activities

• Implementation of IFRS 16 impacts the cash flow from operating activities positive with NOK 15.2 million for Q1 2019 due to reduced lease expense
• Strong cash flow
• Invoicing of customers in advance predictable and stable costs

Investing activities

• Acquisition of 1 company assets aqusitions (cash) in 2019
• Establishment and fit out new facilities and expanisons
• Maintenance is posted as property cost

Financing activities

• Implementation of IFRS 16 impacts the net cash flow from financing activities negative with NOK 15.2 million due to payments of lease liabilities
• Repayment of loan facility in Q1 2019

SSG's cash position at the end of March 2019 was NOK 129.5 million

		unaudited	unaudited	Augited
(Amounts in NOK 1 000)	Note	For the three months ended 31 March 2019	For the three 31 March 2018	months ended For the year ended 31 December 2018
Cash flow from operating activities
Profit before tax		12 805		98 346
			12 001
Income tax paid		$-723$		$-2244$
Interest expense	2	5 2 3 8	35	1819
Depreciation Gain/loss on disposal of property, plant and equipment		2 4 6 7 41	2 3 8 6	10 527 - 47
Change in fair value of investment property	5	$-406$	$-490$	$-38223$
Change in fair value of leasehold property	2,5	13 181
Change in trade and other receivables		$-603$	219	$-1946$
Change in trade and other payables		$-3.512$	443	791
Change in other current assets		809	$-5205$	$-2414$
Change in other current liabilities		9899	$-1531$	$-582$
Net cash flow from operating activities		39 196	7858	66 027
Cash flow from investing activities
Payments for investment property		$-6107$	- 26 559	$-62902$
Payments for property, plant and equipment		$-6267$	$-4855$	$-21648$
Net cash outflow on acquisition of subsidiaries		21	$-38648$	$-72957$
Net cash outflow from disposal of subsidiaries
Net cash flow from investing activities		$-12353$	$-70062$	$-157507$
Cash flow from financing activities Net proceeds from issue of equity instruments of the Company
Proceeds from borrowing				40 000
Repayment of borrowings	7.	$-2938$	$-1717$	$-19066$
Payments of lease liabilities	2.7	$-10643$
Payments of leases classified as interest	2.7	$-4561$
Interest paid	7.	$-827$	$-629$	$-2312$
Net cash flow from financing activities		$-18969$	$-2346$	18 622
Net change in cash and cash equivalents		7874	$-64550$	$-72858$
Cash and cash equivalents at beginning of the period		122 228	195 224	195 224
Effect of foreign currency rate changes on cash and cash equivalents		$-580$	$-300$	$-138$
Cash and equivalents at end of the period		129 522	130 374	122 228

EBITDA-DEVELOPMENT

(NOK million)

BRIDGE Q1 2018-Q1 2019