Self Storage Group — Investor Presentation 2019

Oct 30, 2019

Self Storage Group ASA Third quarter 2019

30 October 2019

FINANCIALS Q3 2019

110 Facilities

22 700 Storage rooms

134 900 m²

Current lettable area

158 600 m²

Total lettable area

102 800 m²

Gross owned area

23 700 m²

Lettable area underdevelopment

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As of 30 September 2019

GROUP HIGHLIGHTS – THIRD QUARTER 2019

• Revenues in Q3 2019 of NOK 71.9 million, up from NOK 60.6 million in Q3 2018
• Adjusted EBITDA1) in Q3 2019 of NOK 44.1 million
• Adjusted EBITDA1) ex IFRS 16 in Q3 2019 of NOK 28.4 million, up from NOK 22.4 million in Q3 2018
• Adjusted profit before tax1) in Q3 2019 of NOK 20.3 million
• Adjusted profit before tax1) ex IFRS 16 in Q3 2019 of NOK 22.9 million, up from NOK 18.3 million in Q3 2018
• Average occupancy in Q3 2019 for sites with more than 12 months of operation was 86% (86%) with an average rent per m² of NOK 2 370 per year (2 338 NOK)
• Acquisition of Eurobox and two large properties in Oslo
• Total value of freehold investment property end Q3 2019 of NOK 1 046 million, up from NOK 456 million end Q3 18
• Cash position end of September 2019 of NOK 103 million

EBITDA development Q3 2018 vs Q3 2019, including impact of IFRS 16

KEY PERFORMANCE INDICATORS – THIRD QUARTER 2019

2 fo f fa l h b le ** i i ies i in Q 3 9 d Q 3 8 Pe 1 1 t t r rm an ce o c w co m p ar a m an 2 5 + 1, 1 +
ke ‐fo l ke L i i r‐	2 8 3 0 0 0 m	6 8	8 6, 8 %	2 2 3 6 O 4 N K p r m

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

KEY FIGURES – THIRD QUARTER 2019

(NOK million)

KEY FIGURES

	2 0 1 9	2 0 1 8	2 0 1 9	2 0 1 8	2 0 1 8
	Q 3	Q 3	Y T D	Y T D	F Y
R e v e n u e	7 1. 9	6 0. 6	1 9 4. 6	1 7 7. 6	2 3 8. 4
) l i 1 T I F R S 1 6 t t t o a o p e r a n g c o s s e x	‐4 3. 5	‐3 8. 2	‐1 2 6. 0	‐1 2 1. 6	‐1 6 2. 6
d d j S 6 A E B I T D A I F R 1 t u s e e x	2 8. 4	2 2. 4	6 8. 6	6. 0 5	7 5. 7
d d A j I A‐ i I S 1 6 E B T D F R t u s e m a r g n e x	3 9, % 5	3 0 % 7,	3 3 % 5,	3 1, % 5	3 1, 8 %
f f E I F R S 1 6 t e c	1 5. 7 +	0. 0	4 5. 5 +	0. 0	0. 0
d d A j E B I T D A t u s e	4 4. 1	2 2. 4	1 1 4. 1	5 6. 0	7 5. 7
N i t o n‐ r e c u r r n g c o s s	1. 0	0	4. 0	1. 9	1. 9
d R E B I T D A t e p o r e	4 3. 1	2 2. 4	1 1 0. 1	5 4. 1	7 3. 8

ADJUSTED EBITDA Q1 2017-Q3 2019

KEY FIGURES1) – Q3 2019

(NOK million)

& P L	Q 3 1 8	l Op ion t er a a ha c ng e	Im t p ac I F R S 1 6	Q 3 1 9	F Y 1 8	h f‐u ( lea ) R ig t‐o ts se as se se	0. 0
Re ve nu e	6 0. 6	1 1. 3 +	0. 0	7 1. 9	2 3 8. 4	lan d ip Pr ty t t op er p an eq u me n ,	8 7 1.
2) l To ing ta t ts op er a co s	‐3 8. 2	‐5 3	1 5. 7 +	‐2 7. 8	‐1 6 2. 6	dw l l Go i o	9 4. 6
d d A j E B I T D A te us	2 2. 4	6. 0 +	1 5. 7 +	4 4. 1	7 5. 7	l F ina ia ins tru ts nc me n	0. 0
d j d A E B I T te us	9. 2 1	9 5. +	1 5. 7 +	0. 8 4	6 2 5.	l To ta t ts no n‐ cu rre n as se	6 9 0. 9
ha in fa ir lue f inv C ty ng e va o p ro p er	0. 0	0. 0	0. 0	0. 0	3 8. 2	O he t t ts r cu rre n as se	3 3 7.
ha fa lue f lea C in ir ty ng e va o se p ro p er	0. 0	0. 0	‐1 3. 8	‐1 3. 8	0. 0	h d ba k de Ca i ts s an n p os	1 2 2. 2
d d f A j Pr i te ta t us e‐ x p ro	1 8. 3	4. 6 +	‐2 6	2 0. 3	1 0 0. 3	l To ta t ts cu rre n as se	1 5 9. 5
d d f A j Ne i te t t us p ro	1 5. 1	2. 7 +	‐1 4	1 6. 4	8 1. 1	T O T A L A S S E T S	8 5 0. 4
le b le ( ho ) Cu ds 2 t t ta t rre n ar ea us an m	1 1 4. 9	2 0. 0 +	0. 0	1 3 4. 9	1 1 0 7.
b le de de lop Le t ta t ar ea un r ve me n ( ho ds ) 2 t us an m	1 2. 8	1 0. 9 +	0. 0	2 3. 7	1 3. 4	Q S E U I T Y A N D L I A B I L I T I E
C h f l a s o w s						l i To ta ty eq u	6 2 5. 1
h f low fro Ne ing t t ca s s m op er a	1 8. 5	‐0 7	1 8. 5 +	3 6. 3	6 6. 0	be de b Lo in ing ‐te te t‐ t ng rm re s ar	1 1 8. 0
iv i ies t t ac h f low fro Ne inv ing t t ca s s m es iv i ies t t ac	‐1 6. 7	‐4 3 4. 6	0. 0	‐4 5 1. 3	‐1 5 7. 5	b l de Lo ig ion ‐te t ng rm o a s un r f ina lea nc e se s	0. 1
h f low fro f Ne ina ing t ca s s m nc iv i ies t t ac	‐1 8	1 1 4. 6 +	‐1 8. 5	9 4. 3	1 8. 6	fe d l b l De ia i i ies ta t rre x he l b l O ia i i ies t t t r no n‐ cu rre n	3 4. 9 1. 0
h d h iva len Ca ts t s an ca s eq a u be f he d inn ing io t g o p er	1 0 8. 3	3 1 5. 1 +	0. 0	4 2 3. 4	1 9 5. 2	l l b l To ia i i ies ta t t cu rre n	7 1. 4
f Ca h d h iva len d ts t s an ca s eq u a en o he d io t p er	0 8. 1 1	2 ‐5	0. 0	0 2. 9 1	2 2. 2 1	l l ia b i l i ies To ta t T O T A L E Q U I T Y A N D L I A B I L I T I E S	2 2 5. 4 8 5 0. 4

31 Dec 18 30 Sept 19 Impact IFRS 16 ASSETS Investment property 524.5 1 045.6 0.0 0.0 456.0 456.0 71.8 103.1 0.4 94.6 185.0 0.0 0.0 24.8 0.0 690.9 1 816.2 456.4 37.3 37.0 ‐2.6 122.2 102.9 0.0 159.5 139.9 ‐2.6 850.4 1 956.1 453.8 625.1 980.5 ‐7.4 118.0 243.4 0.0 0.1 403.5 403.5 34.9 90.9 ‐1.2 1.0 0.5 0.0 71.4237.359.0Balance sheet

1) Unaudited figures for 2019

2) Adjusted for non‐recurring costs of NOK 1.0 million in Q3 2019, NOK 0 million in Q3 2018, and NOK 1.9 million in FY 2018

461.2

453.8

975.7

956.1

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
• • 35% of current lettable area in operation at the end of September 2019 was freehold

• • Freehold m² has increased with 36% during 2019

• • SSG plans to open 10 000 m² in 2019, mainly freehold

• • 51 of a total of 110 facilities in operation (46%) were freehold as of September 2019

3 0. 9. 2 0 1 9 2 m	Cu t rre n le b le t ta ar ea	de Un r de lo t ve p m en	l le b le To ta t ta ar ea
ho l d fa l Fre i i ies t e c	4 7 7 0 0	2 3 7 0 0	7 1 4 0 0
d fa l Le i i ies t as e c	8 7 2 0 0	0	8 7 2 0 0
S U M	1 3 4 9 0 0	2 3 7 0 0	1 5 8 6 0 0

FREEHOLD PROPERTY AS OF Q3 2019 -PROPERTY VALUE INCREASED BY 129% FROM Q3 2018

Freehold portfolio

SSG owns 57 properties with a total gross area of 102 800 m2

3 0. 9. 2 0 1 9 2 m	Gr os s ar ea	l le b le To ta t ta ar ea	Cu t rre n le b le t ta ar ea	1) de Ar ea un r de lo t ve p m en
l Fa i i ies in t c ion t op er a	9 1 3 0 0	6 3 6 0 0	4 7 4 0 0	1 6 2 0 0
i l i ies Fa t t t c no e y d op en e	1 1 5 0 0	7 5 0 0	0	7 5 0 0
l ler lna Su i & A T m ex	1 0 2 8 0 0	1 1 0 0 7	4 4 0 0 7	2 3 0 0 7
2) i l ler T	0 0 5 4	3 6 0 0	0	3 6 0 0
2) lna A	7 0 0 0	4 9 0 0	0	4 9 0 0
Su m	1 1 5 2 0 0	7 9 6 0 0	4 7 4 0 0	3 2 2 0 0

• • 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 assesment of indications of change

Total freehold property of 1 046 MNOK

Gross area pr region and yield as of 31.12.18

²⁾ The potential lettable area for the properties Alna and Tiller is subject to building permits

CURRENT LETTABLE AREA OF 134 900 M2 AS OF Q3 2019 – 23 700 M2 IN PIPELINE1)

1) Potential lettable area of the option to acquire a neighbouring building at Billingstad, and the potential lettable area from the greenfield project are not included in the KPIs of Q3 2019

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23 700 M2 IN POTENTIAL LETTABLE AREA1)

• The potential m2 is in freehold facilities in Norway
• Rent income from expiring lease contracts from 7 500 m2 of the 23 700 m2 not yet built into self-storage units
• 10 000+ m2 are planned to open during 2019 (organic)

h he ls Ar i t t ta ea o r re n w	7 2 0 0	3 0 0	7 5 0 0
Su m	1 9 3 0 0	4 4 0 0	2 3 7 0 0
io Ex p an s ns	1 2 8 0 0	3 5 0 0	1 6 2 0 0
fa l i i ies Ne t w c	6 0 0 5	9 0 0	0 0 7 5
	C S S	O K M	l To S S G ta

Current lettable area pr region in Norway2)

Lettable area under development2)

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1) In addition there is a potential lettable area of 3 900 m2 from 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 Q3 2019

DEVELOPMENT IN CAPACITY, OCCUPANCY AND RENT

Occupancy for facilities like‐for‐like2) has increased from 86% in Q3‐18 to 87% in Q3‐19 Average rent pr m² per year for facilities Like‐for‐Like2) has increased from NOK 2 414 to NOK 2 439

AVERAGE OCCUPANCY1) AND RENT1)

86% 84% 83% 84% 87% 88% 81% 90% 87% 85% 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Occupancy SSG L‐f‐L OK M CSS S CSS D CSS N Average occupancy Q3‐18 Average occupancy Q3‐19 Average rent Q3‐18 Average rent Q3‐19 83 100 51 100 15 300 32 000 56 700 16 100 16 800 45 300 0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 SSG L‐f‐L OK M CSS S CSS D CSS N 30.09.2018 30.09.2019 16 500 Average rent

Occupancy in CSS Norway 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 opened last

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 19 as in Q3 18 +/- 50 m2

CURRENT LETTABLE AREA

year

REVENUE DYNAMICS Q3 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 COMPANY

110 Facilities

22 700 Storage rooms

134 900 m²

Current lettable area

158 600 m²

Total lettable area

102 800 m²

Gross owned area

23 700 m²

Lettable area underdevelopment

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As of 30 September 2019

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

SSG CONSISTS OF TWO DISTINCT BUSINESS CONCEPTS

City Self-Storage

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

• 381) 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
• 78 200 m2 CLA (14 000 m2 is freehold)

45 300 16 100 16 800

OK Minilager

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

• 721) facilities located across Norway
• 43 temperate storage facilities and 29 drive-in storage facilities
• 2nd largest player in Norway, behind CSS
• Self service, open 24 hr/day and 7 days a week
• 56 700m2 CLA ( 33 700 m2 is freehold)

OUR HISTORY

1 9 9 3		1 9 9 8			2 0 0 9			2 0 1 6			2 0 1 7
•F irs t C S S i te ta b l is he d s e s in No inv tm t in rw ay es en , "S fe " M in i La in a g er Sw de e n	•S lva e ag in to t he bu de ex p an	G te ro up e n ine s ss a n d to De nm ar	d re d C S S k	•O K M in i lag ta b l is he es Fa b ian S ø	er as w d by G ta us v ba k	d an	•F l i f f inv er nc M in i lag er •O K M in i lag C S S	te d in O K es ire d er a cq u	•S S •L is	G ta b l is es O te d S E on	he d
	Q 1‐ 1 7	Q 2‐ 1 7	Q 3‐ 1 7	Q 4‐ 1 7	Q 1‐ 1 8	Q 2‐ 1 8	Q 3‐ 1 8	Q 4‐ 1 8	Q 1‐ 1 9	Q 2‐ 1 9	Q 3‐ 1 9
P i t r v a e ) 1 l t p a c e m e n s	1 0 0 M N O	K	2	0 0 M N O K					2 5	0 M N O K
f i i A t c q u s o n o i c o m p a n e s		( fa l 9 i i t c	) ies							( 4	fa l ) i i ies t c
					( fa l i i ies 4 t c	)
f A i i t c q s o n o u	2 2	2 0	6 4	1 0 4	1 5 5	1 7 2	1 7 0	2 1 4	2 2 1	2 5 3	2 8 3
i t p r o p e r e s	Q 1‐ 1 7	Q 2‐ 1 7	Q 3‐ 1 7	Q 4‐ 1 7	Q 1‐ 1 8	Q 2‐ 1	8 Q 3‐ 1 8	Q 4‐ 1 8	Q 1‐ 1 9	Q 2‐ 1 9	Q 3‐ 1 9
			i l i ies Fa t c ac	ire d in he t q u	te q ua r r	To	l be ta nu m r o	f fa i l i ies t c ac	ire d inc q u s	2 0 1 7 e

THE EUROBOX-ACQUSITION

• Eurobox with four large facilities in the Oslo-area acquired 1 July 2019
  • – Enterprise Value of NOK 320m
  • – NOK 75m settled in SSG consideration shares
• Eurobox represents a significant addition to SSG's freehold portfolio
  • – 61% of portfolio is freehold with substantial expansion potential
  • – Option to acquire neighboring building at Billingstad for NOK 31.5 million, with a CLA potential of 3 150 m2
• The acquisition is line with SSG's M&A strategy of strengthening the #1 position in Norway and gaining attractive assets with further development potential
• Eurobox will be rebranded to City Self-Storage during 2020, plans are made for intergration of marketing, operations and IT
• Eurobox has rent income from expiring lease contracts from 2 700 m2 of the 5 000 m2 not yet built into self-storage units

M N O K	Q 3 2 0 1 9	F Y 2 0 1 8
R e v e n u e	7. 2	2 8. 3
i l O t t p e r a o n a c o s s e x I F R S 1 6	2. 8	1 6. 6
E B I T D A	4. 4	1 1. 7

2 1 0 8 0 0 m C L A	2 5 0 0 0 m l C L A i t t p o e n a	2 3 1 5 0 m C L A i t o p o n
% 8 6 O c c u p a n c y	2 8 8 3 2 N O K p r m p r y e a r	2 1 9 5 0 0 m d G r o s s o w n e a r e a

DEVELOPMENT PIPELINE

Development projects

i l i F t a c y	i L t o c a o n	S t t a s u	i l P C L A t t o e n a ( ) a p p r o x.	d E t x p e c e i o p e n n g	C t o n c e p
O l s o B i l l i 2 5 r e v o v e e n	L d k l i t a n m a r o c a o n i h i i i b i l i t t w u n q u e v s y	S i i d i A i l 2 0 1 9 t e a c q r e n p r u P l i l i i b b i d i t t t t a n n n g a p p c a o n o e s u m e n Q 3 2 0 1 9	2 4 9 0 0 m	2 0 2 1
T d h i r o n e m J h A o n a e s v e g	P i l t i t r m e o c a o n a T i l l i T d h i e r r o n e m i t h t i i b i l i t w g r e a v s y	S i t i d i J 2 0 1 8 e a c q u r e n u n e P l i l i t i b i t t d a n n n g a p p c a o n s u m e i Q 2 2 0 1 9 n	2 3 6 0 0 m	2 0 2 0
M o s s N k k i 1 3 ø e e e n v	H i h l i i b l g s e y v l i i M t o c a o n n o s s	C i i t t o n s r c o n n p r o g r e s s u ( i f i i f i l i ) t t e p a n s o n o e s n g a c x x y	2 1 2 0 0 m	Q 4 2 0 1 9
L k ø r e n s o g S l h i i o e m s v e e n 3 2	L t d i B i o c a e n a g b t i l i t h o x r e a a r e a w t i i b l i t g r e a v s y	P l i t d a n n n g g r a n e ( f f ) i i t i i l i t e x p a n s o n o e x s n g a c y	2 9 0 0 m	2 0 2 0

Estimated investment until completion: 130 MNOK

DEVELOPMENT PIPELINE

Significant conversion/expansion projects

l i i F t a c y	i L t o c a o n	S t t a u s	l i C L A P t t o e n a ( ) a p p r o x.	d E t p e c e x i o p e n n g	C t o n c e p
O l s o f H t 1 1 o v a r e	S L t d t k ø o c a e a y e n, t t t i a n a r a c v e i l h b i t h c o m m e r c a u w i i f i t a s g n c a n h t t c a c m e n a r e a	S f S f l t i t- t i b i t t d e o r a g e o u s e n g c o n s r u c e 2) f ( f t l 9 0 0 t h i t h o n w o o o r s m a s e r s p a s e f t h i 6 f l b i l d i o s o o r u n g	2 3 5 0 0 m	Q 4 2 0 1 9
A k s e r B i l l i t d l t t n g s a s e a 9 1	L t d t o c a e a B i l l i t d i t h n g s a w a n i i i b i l i f t n q e s r o m u u v y h t e E- 1 8 h i h g w a y	S l f S t f i t- t i l l b i t l l d e o r a g e o u w e n s a e o n t h 4 t h d 5 t h f l f t h b i l d i i e a n o o r o e u n g n Q 4 2 0 1 9 d Q 1 2 0 2 0 a n	2 1 3 0 0 m	Q 1 2 0 2 0
O l s o Ø A k i t s r e e r e v 1 0 1	F i l i t l t d a c y o c a e Ø l i d A k t a o n g s e s r e e r i i h t t e g r e a v w i i b i l i d t v s y a n a c c e s s	F i t h f t h i j t i r s p a s e o e c o n v e r s o n p r o e c s l d i f i h l f f 2 0 2 0 t t t t p a n n e o s a r n r s a o	2 3 0 0 0 m	2 0 2 0

SSG HAS A STRONG PLATFORM FOR FUTURE GROWTH

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

Focus on the larger urban areas in

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

Growth potential within existing

Opportunity for M&A in selected

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 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

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

	Holding	96	Name	Country
1	14 297 922		17,3 % FEOK AS	Norway
2	9 565 000		11,6 % FABIAN HOLDING AS	Norway
3	6 565 000		7,9 % CENTRUM SKILT AS	Norway
4	4 080 000	4,9 %	FERNCLIFF INVEST AS	Norway
5	3 896 103		4,7 % FIRST RISK CAPITAL AS	Norway
б	3 623 214		4,4 % VATNE EQUITY AS	Norway
7	3 129 278		3,8 % SKAGEN M2 VERDIPAPIRFOND	Norway
8	2 768 882		3,4 % HANDELSBANKEN Nordiska Smabolag	Sweden
9	2 536 064		3,1 % HOLTA INVEST AS	Norway
10	2 156 674		2,6 % ODIN EIENDOM	Norway
11	1 958 983		2,4 % VERDIPAPIRFONDET DNB SMB	Norway
12	1 923 074		2,3 % HSBC TTEE MARLB EUROPEAN TRUST	United Kingdom
13	1 641 428		2,0 % Danske Invest Norge Vekst	Norway
14	1 498 432	1,8 %	EATS AS	Norway
15	1 250 000		1,5 % HOLBERG NORGE	Norway
16	1 050 677		1,3 % STOREBRAND VEKST VERDIPAPIRFOND	Norway
17	1 001 379		1,2 % KLAVENESS MARINE FINANCE AS	Norway
18	854 000		1,0 % MUSTAD INDUSTRIER AS	Norway
। ਰੇ	811 794		1,0 % BNP Paribas Securities Services	Luxembourg
20	790 000		1,0 % SOLE ACTIVE AS	Norway
	65 397 904	79,2 %

Share development

Shareholder structure

Total number of shares: 82 617 226

THIRD QUARTER 2019 COMPREHENSIVE INCOME

Profit and loss statement

(Amounts in NOK 1 000)	Note	Unaudited months ended 30 September 2019	Unaudited For the three For the three For the nine months ended 30 September 2018	Unaudited months ended 30 September 2019	Unaudited ended 30 September 2018	Audited For the nine For the twelve months months ended 31 December 2018
Revenue	3	71 909	60 630	194 569	177 609	238 361
Lease expenses	2,3	3 952	17 700	10 275	53 794	71 451
Property-related expenses	3	7 292	5 844	20 279	18 903	25 425
Salary and other employee benefits	3	8 913	8 383	28 396	27 692	37 403
Depreciation		3 298	3 196	8 259	7 954	10 527
Other operating expenses	3	8 666	6 285	25 493	23 179	30 311
Operating profit before fair value adjustments		39 788	19 222	101 867	46 087	63 244
Change in fair value of investment properties	6			5 073	2 500	38 223
Change in fair value of leasehold properties	2.6	-13 825		-40 478
Operating profit after fair value adjustments		25 963	19 222	66 462	48 587	101 467
Finance income		374	174	657	786	1 511
Finance expense	2	7 056	1 093	18 947	3 680	4632
Profit before tax		19 281	18 303	48 172	45 693	98 346
Income tax expense		3718	3 187	9 921	9 537	18 856
Profit for the period		15 563	15 116	38 251	36 156	79 490
Total adjustments		997		3 986	1942	1942

Comments

• Financial development is highly impacted by the implementation of IFRS 16 from 1 January 2019

• Revenue for Q3 2019 was NOK 71.9 million, up NOK 11.3 million from Q3 2018. The increase is related to the acquisition of Eurobox, growth in lettable area and rentals.

• Operating profit in Q3 2019 of NOK 39.8 million was impacted by the implementation of IFRS 16 and the acquisition of Eurobox. The increase from Q3 2018 was NOK 20.6 million, whereof NOK 15.7 million relates to the implementation of IFRS 16. In total non-recurring items amounted to NOK 1.0 million in Q3 2019 and none in Q3 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

(Amounts in NOK 1 000)		Unaudited	Audited
		30 September 31 December
ASSETS		2019	2018
Non-current assets	Note
Investment property	6	1 045 578	524 505
Right-of-use assets - leasehold property	2.6	456 035
Property, plant and equipment		103 125	70 405
Goodwill		184 992	94 639
Other intangible assets		1 718	1 376
Total non-current assets		1816 198	690 925
Current assets
nventories		1 577	1 270
Trade and other receivables		16 355	13 421
Other current assets		19 100	22 598
Cash and bank deposits		102 885	122 228
Total current assets		139 917	159 517
TOTAL ASSETS		1956 115	850 442

(Amounts in NOK 1 000)		Unaudited	Audited
		30 September 31 December
EQUITY AND LIABILITIES		2019	2018
Equity
Issued share capital	7	8 261	6 573
Share premium		743 869	427 889
Other reserves		- 222	290
Retained earnings		228 550	190 299
Total equity		980 458	625 051
LIABILITIES
Non-current liabilities
Long-term interest-bearing debt	00	243 378	118 023
Long-term obligations under finance leases 2,8		403 539	143
Other financial liabilities		550	873
Deferred tax liabilities		90 905	34 911
Total non-current liabilities		738 372	153 950
Current liabilities
Short-term interest-bearing debt	80	104 354	11 750
Short-term obligations under finance leases 2,8		59 017	74
Trade and other payables		7 533	11 404
Income tax payable		16 696	11 647
Other taxes and withholdings		6 049	5 291
Other current liabilities		43 636	31 275
Total current liabilities		237 285	71 441
Total liabilities		975 657	225 391
TOTAL EQUITY AND LIABILITIES		1 956 115	850 442

Comments

Total assets of NOK 1 956 million

• Owned investment property increased by NOK 521.1 million since 31 December 2018, and implementation of IFRS 16 with recognition of leasehold property amounted to NOK 456.0 million end September
• Cash and bank deposits decreased with NOK 19.3 million mainly due to higher net outflow on acquisition of subsidiaries and investment property than net proceeds form private placement of NOK 242.7 million and new loans under the existing loan facility
• Increased equity through private placement, issuance of consideration shares and result for the period
• Negative net interest-bearing debt was NOK 244.8 million. Increased obligations under financial lease due to implementation of IFRS 16, with NOK 462.6 million in the balance as of 30 September 2019
• Equity ratio was 50%

THIRD QUARTER 2019 – CASH FLOW

Condensed consolidated statement of cash flows

C t o m m e n s
O i iv i i
t t t p e r a n g a c e s
Im lem ta t ion f I F R S 1 6 im ts t he h f low fro p en o p ac c as m 
O fo Q t ing t iv i t ies i t ive i t h N K 1 8. 5 i l l ion 3 op er a a c p os w m r
du to du d lea e re ce se e xp en se 
S f tro h low ng c as
Inv ic ing f c in dv d ic b le d to ta  o o us m er s a an ce re an
p – b le ta ts s co s
I i iv i i t t t nv e s n g a c e s
Ac is i t ion f Eu bo d tw ts q o ro an o co m p an as se  u x y
is i t ion ( h ) in Q 3 2 0 1 9 ac q u s ca s
f fa Es ta b l is hm t a d i t o t n i l i t ies d ion  en n u ew c a n ex p an s s
M in te is te d ty t  a na nc e p os as p ro p er co s
F i i t iv i t i n a n c n a c e s
g fro fa Pr ds loa de t he is t ing loa i l i ty  oc ee m a ne w n un r e x n c
d f loa fa i l i in Q 3 2 0 1 9 t o ty an re p ay m en n c
Im lem ion f I F R S 1 6 im he h f low ta t ts t t c  p en o p ac n e as
fro f ina ing t iv i t ies t ive i t h N O K 1 8. 5 i l l ion m nc a c n eg a m w
du to ts f lea l ia b i l i t ies e p ay m en o se
S S G 's h i t i t t h d f S t b 2 0 1 9
c a s p o s o n a e e n o e p e m e r N O K 1 0 2. 9 i l l i
w a s m o n

| 30

EBITDA-DEVELOPMENT

(NOK million)

BRIDGE Q3 2018-Q3 2019