Self Storage Group ASA Fourth quarter February 2018

Transcription

1 Self Storage Group ASA Fourth quarter February

2 GROUP HIGHLIGHTS FOURTH QUARTER 2017 Revenues in Q NOK 55.3 million, up from NOK 50.8 million in Q Adjusted EBITDA in Q of 15.1 million 1), up from NOK 9.0 million in Q Revenues for the full year of 2017 NOK million Adjusted EBITDA for the full year of 2017 NOK 54.2 million 1) 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 Notes: 1) EBITDA adjusted for non-recurring costs of NOK 3.9 million in Q and NOK 9,5 million YTD 2

3 KEY FIGURES Q Current lettable area (CLA) m 2, up from m 2 in Q new facilities and expansions adding a total of m 2 CLA Acquisition of 4 properties with approximately m 2 lettable area Average rent 1) NOK pr m 2 Occupancy 1) 84,1% Total number of facilities 84 Notes: 1) Average occupancy and rent price pr m 2 for all sites with more than 12 months of operation, expansions are included 3

4 GROUP HIGHLIGHTS SUBSEQUENT EVENTS Completed transaction of the Minilager Norge group adding 4 sites to the CSS portfolio and m 2 CLA Acquisition of 3 new properties with a total lettable area of m 2 Signed agreements to acquire 2 properties with a total lettable area m 2 As of 15 February 2018 SSG has m 2 CLA and m 2 lettable area under development in total m 2 4

5 KEY FIGURES Q and YTD 2017 (NOK million) KEY FIGURES DEVELOPMENT Q Q Q4 Q3 Q4 FY FY Revenue Total operating costs ,8 49,8 51,4 55,6 55,3 Adjusted EBITDA IPO-costs Acquisition costs Reported EBITDA ,2 COST-DEVELOPMENT Q Q ,1 0,3 0,3-0,8 0,5 1,4 0,2 40, ,0 9,9 11,8 17,4 15, Q Q Q Q Q Revenue Adjusted EBITDA 1 Unaudited figures. Adjusted for IPO and non-recurring items of NOK 3.9 million in Q4 2017, NOK 4.6 million in Q and NOK 0.9 million in Q

6 KEY FIGURES 1 Q (NOK million) P&L Q4 17 Q3 17 Q4 16 FY 17 FY 16 Revenue Total operating costs Adjusted EBITDA Adjusted EBIT Change in fair value of investment properties Adjusted Pre-tax profit ,6 Adjusted Net profit Current lettable area (thousands m2) Lettable area under development (thousands m2) N/A 12.3 N/A Cash flows Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period Balance sheet ASSETS Investment property Property, plant and equipment Goodwill Total non-current assets Other current assets Cash and bank deposits Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Total equity Long-term interest-bearing debt Deferred tax liabilities Total non-current liabilities Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES ) Unaudited figures for ) Adjusted for IPO and non-recurring items of NOK 3,9 million in Q4 2017, NOK 4,6 million in Q and NOK 0,9 million in Q

7 NOK million NOK million INCREASING REVENUE AND EBITDA-MARGIN CSS % % 20% 0% Revenue EBITDA EBITDA-margin OK Minilager % % 20% 0% Revenue EBITDA EBITDA-margin Numbers in MNOK 1) Minilageret AS is reported with OK Minilager from 1/

8 HIGH ACTIVITY IN 2017 CONTINUING THE GROWTH Q Q Q Q Private placement NOK 100 million Acqusition of 2 properties in Stavanger and Ålesund (1 600 m 2 ) Acqusition of Minilageret AS with 9 facilities in the eastern part of Norway (7 700 m 2 ) Acqusition of 4 properties in the greater Oslo, Sandnes, Vestby and Stavanger (3 300 m 2 ) Private placement of NOK 200 million Listed on Oslo Stock Exchange Acqusition of 4 properties in Mandal, Fredrikstad, Porsgrunn and Kristiansand (2 200 m 2 ) Signed agreement to acquire the Minilager Norge group with 4 facilities in Østfold (4 300 m 2 ) Acquired m2 Raised NOK 300 million in gross proceeds Digital marketing and online booking CRM-project Optimising CSS Integration of Minilageret Establishment of HQ-functions 8

9 CLA INCREASED BY M 2 DURING M 2 IN PIPELINE ,5% Current lettable area Closing of site in Sweden due to expire of lease Openings and expansions Acqusition of Minilageret Current lettable area Acqusition of Minilager Norge CLA Area under development Total lettable area

10 MORE THAN M 2 IN POTENTIAL LETTABLE AREA potential square meters in newly acquired facilities Tromsø Square meters: potential square meters in existing facilities All potential square meters in freehold facilities Rent income from expiring lease contracts from m 2 of the m 2 not yet bulid into self-storage units square meters is planned to open during 2018 West Square meters: 2500 Greater Oslo Square meters: South/West Square meters: 1200 Illustration of a Greenfield project developed under the OK Minilager brand 10

11 STEADY GROWTH IN SHARE OF OWNED PORTFOLIO FREEHOLD FACILITIES (M 2 ) NUMBER OF FREEHOLD FACILITIES % December December February December December February 2018 SSG s strategy is to expand within owned facilities 21% of current lettable area at the end of Q was freehold m 2 leased m 2 owned Freehold square metere has increased with 110% during of 16 new facilities established in 2017 was freehold 33% of total lettable area as of is freehold 11

12 NOK million PROPERTY VALUE INCREASED BY 107% IN 12 MONTHS As of SSG owns 35 properties Internal lease agreements at commercial terms are signed between OK Property and the operating companies in the Group 100 External valuations - conservative yields 50 0 Q Q Q Q Q Investment property 12

13 REVENUE DYNAMICS Q Lettable area Occupancy 1) Rent pr m2 1 Revenue Lettable not yet opened Minilager Norge Current lettable area x 90% Target occupancy Current occupancy 84,1% for facilities open for 2,337 more than 12 months Identified upside to current rent levels in OKM x = Current avg. rent level for mature facilities 4, Significant upside potential Other income Reported in Q Detailed plan in place to increase lettable area Potential to increase occupancy in Sweden and Denmark Expected to remain fairly flat as growth is main focus Strong revenue growth expected going forward Note: 1)Average occupancy and rent pr m 2 for sites with more than 12 months of operation in NOK 2) Numbers in NOK million 13

14 STRONG LINK BETWEEN REVENUE GROWTH AND ABSOLUTE GROWTH IN PRE TAX FREE CASH FLOW Strong link between further growth in revenue and EBITDA 55 Property cost Lease cost Relatively stable. Will increase with new facilities but is somewhat limited as the company constantly tries to optimise both concepts Assumed fairly stable as long contracts are in place for leased facilities and growth is expected to come from owned facilities 40 Other costs (Other operating expenses, OPEX and COGS) Have proven very stable over last couple of years and will likely not increase much although lettable area and revenue is growing ZERO NEGATIVE NORMAL Maintenance CAPEX is basically zero Negative working capital leading to positive CF effect from revenue growth Normal tax profile Revenue Adj. operation cost CAPEX WC Tax 14

15 ACQUISITIONS IN THE QUARTER Acquisition of 4 new properties with a CLA potential of m 2 Fredrikstad Mandal Kristiansand Porsgrunn Signed: Nov 1st 2017 Signed: Oct 1st 2017 Signed: Dec 1st 2017 Signed: Dec 1st 2017 Type: Company asset acquisiton Type: Property (building) Type: Property (building) Type: Property (Building) Potential lettable area: 1,000 m 2 Potential lettable area: 400 m 2 Potential lettable area: 290 m 2 Potential lettiable area: 480 m 2 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 6 th most populous urban area in Norway. Location: Mandal is a small city about 45 minutes west of Kristiansand. Approx inhabitants within a 5 mile radius Location: Our third location in Kristiansand, and our second in Mjåvann, an industrial area just outside Kristiansand. Location: Our first location in Porsgrunn. With this acquisition we strenghten our position in Grenland, the 7 th most populous urban area in Norway. 15

16 THE COMPANY 16

17 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 m 2 CLA and m 2 lettable area under development in total m storage rooms in 30 cities and towns 89 facilities 17

18 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 capital cities 31 1 temperate storage facilities across One of the leading self-storage providers in the Scandinavian market Located in Oslo, Stockholm and Copenhagen m 2 of lettable storage space (4 974 m 2 freehold) OK Minilager Countrywide, discount-priced offering of self-serviced storage facilities in Norway 58 2 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 m 2 of lettable storage space ( m 2 freehold) 1 As of 15 February Including Minilager Norge group 2 As of 15 February Including Minlageret AS 18

19 SSG HAS A STRONG PLATFORM FOR FUTURE GROWTH City Self-Storage OK Minilager Prime locations in all Scandinavian capital cities Country-wide offering with presence in smaller cities A strong position in the Eastern Norway Focus on the fastest growing cityregions Still not market leader in the 2 nd and 3 rd largest cities in Norway 10+ smaller markets not yet covered 19

20 NOK million...and STRENGTHENED THROUGH THE RECENT ACQUISITION OF MINILAGER NORGE Geographic presence Minilager Norge Portfolio of 4 attractive locations in the Østfold county Moss Square meters: 800 Rygge Square meters: 780 Sarpsborg Square meters: 1650 Halden Square meters: 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 Key financials* 60% 58% 56% 54% % Revenue EBITDA-MARGIN Map Source: Google Maps * Unaudited numbers 20

21 OUR HISTORY 1993: First CSS site established in Norway and a investment in Safe Mini Lager in Sweden 1998: Selvaag Group entered into the business and CSS expanded to Denmark 2002: CSS started expanding outside Scandinavia 2009: OK Minilager was established 2014/15/16: CSS divests operations in CEE and Spain and becomes a pure Scandinavian player 2014: OK Minilager opens its first climate controlled facility 2011: OK Minilager opens its first free-hold site 2010: Online booking with 100% self-service is launched 2016: Ferncliff invested in OK Minilager 2016: OK Minilager acquires CSS and becomes a truly leading Scandinavian player 2017: Acquisition of Minilageret AS, CSS opens its first free-hold sites in Norway. SSG listed on OSE 2018: Acquisition of Minilager Norge group = City Self Storage = OK Minilager = Self Storage Group 21

22 THE MARKET 22

23 UNTAPPED POTENTIAL FOR SELF STORAGE IN THE NORDICS Scandinavia lagging in terms of self storage space per capita (sq.m.) 0,848 "Mature markets" Experience from more mature markets highlight a significant untapped potential in the Scandinavian countries The European market is growing; total number of facilities and lettable area have experienced CAGRs of 6.4 % and 4.5 % since 2014, respectively 0,170 "European leaders" Immature markets 0,054 0,050 0,030 Source: FEDESSA European Self Storage Survey 2016, The SpareFoot Storage Beat, IBISWorld 23

24 Oslo London Stockholm Copenhagen Amsterdam Dublin Brussels Madrid Helsinki Rome Paris ALL FACTORS SUGGESTING INCREASING DEMAND FOR STORAGE GOING FORWARD Private consumption and 5 year growth in disposable income 1)2) Household final consumption expenditure per capita in 2015 (constant 2010 USD) and avg. growth in disposable income last 5 years 2.0 % 41,390 Switzerlan d 39,214 Norwa y 35,468 United States 34,390 Luxembour g Strong urbanization trend % 3.3 % % of population living in cities 2.2 % 85.4% 85.8% +7% N/A 88.9% +4% 30,343 Australi a % 2040e 1.9 % 28,677 Canad a 1.2 % 27,924 Denmar k 0.3 % 26,637 Japa n 1.1 % 26,162 UK 2.4 % 25,390 Swede n...particularly in the Nordics Population growth ( 13-25e CAGR) in selected European cities 1.2% 1.1% 0.8% 0.7% 0.5% 0.5% 0.5% 0.4% 0.4% 0.3% 0.3% 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 87.5% 90.2% +3% Source: Notes: The World Bank, OECD Data, Eurostat, SSB, FEDESSA European Self Storage Annual Survey 2016, Arctic Securities Research 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

25 URBANISATION AND RISING HOUSING PRICES HAVE LEAD TO NEW BUILDING STANDARDS WITH LESS STORAGE SPACE Old building standards New building standards Approx. 50m2 3 rooms Closed kitchen Approx. 40m2 2 rooms Open kitchen 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 25

26 Appendix 26

27 FOURTH QUARTER AND YTD 2017 COMPREHENSIVE INCOME NOK 1000 Profit and loss statement 1) For the three months ended 31 December 2017 For the three months ended 31 December 2016 For the twelve months ended 31 December 2017 For the twelve months ended 31 December 2016 Revenue Property-related expenses Salary and other employee benefits Depreciation Other operating expenses Operating profit before fair value adjustments Change in fair value of investment properties Operating profit after fair value adjustments Finance income Finance expense Profit before tax Income tax expense Profit for the period 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 Other comprehensive income for the period, net of income tax Total comprehensive income for the period Comments 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 Q was NOK 55.6 million, up NOK 4.5 million from Q The increase is due to income from Minilageret and growth in rentals in the Norwegian market Operating profit in Q 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 Notes: 1) Unaudited figures for

28 YTD 2017 FINANCIAL POSITION Financial position 1) Comments (Amounts in NOK 1 000) 31 December 31 December ASSETS Non-current assets Investment property Property, plant and equipment Goodwill Total non-current assets Current assets Inventories Trade and other receivables Other current assets Cash and bank deposits Total current assets TOTAL ASSETS December 31 December EQUITY AND LIABILITIES Equity Issued share capital Share premium Other reserves Retained earnings Total equity Liabilities Non-current liabilities Long-term interest-bearing debt Deferred tax liabilities Obligations under finance leases Total non-current liabilities Current liabilities Short-term interest-bearing debt Trade and other payables Income tax payable Other taxes and withholdings Obligations under finance leases Other current liabilities Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES Total assets increased to NOK 685 million at the end of Q 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 Notes: 1) Unaudited figures for

29 YTD 2017 CASH FLOW Condensed consolidated statement of cash flows 1) (Amounts in NOK 1000) Cash flows from operating activities Notes: 1) Unaudited figures for 2017 For the twelve months ended 31 December 2017 For the twelve months ended 31 December 2016 Profit before tax Income tax paid Interests not paid Financial lease -384 Depreciation Gain/loss on disposal of property, plant and equipment 148 Change in fair value of investment property Change in trade and other receivables Change in trade and other payables Change in other current assets Change in other current liabilities Net cash flows from operating activities Cash flows from investing activities Payments for investment property Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Net cash outflow on acquisition of subsidiaries Net cash flows from investing activities Cash flows from financing activities Proceeds from issue of equity instruments of the Company Proceeds from borrowings Repayment of borrowings Net cash flows from financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of the period Effect of foreign currency rate changes on cash and cash equivalents Cash and equivalents at end of the period Comments 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 SSG s cash position at the end of 2017 was NOK 195 million 29