Self Storage Group ASA Third quarter November 2017

Transcription

1 Self Storage Group ASA Third quarter November

2 GROUP HIGHLIGHTS THIRD QUARTER 2017 Revenues in Q NOK 55.6 million, up from NOK 51.4 million in Q Adjusted EBITDA in Q of NOK 17.4 million 1), up from NOK 11.8 million 1) in Q Current lettable area (CLA) m 2, up from m 2 in Q Acquired 4 properties with a total lettable area of approximately m 2 Notes: 1) EBITDA adjusted for non-recurring costs of NOK 4.6m in Q and NOK 0.9m in Q2 2

3 GROUP HIGHLIGHTS SUBSEQUENT EVENTS Private placement of NOK 200 million Successful listing on Oslo Stock Exchange Acquisition of 5 new properties with a total lettable area of approximately m 2 Total lettable area as of 16 November 2017 is m 2 including m 2 lettable area under development storage rooms in 30 cities and towns Cash position NOK 225 million Self Storage Group ASA successfully listed on Oslo Stock Exchange on 27 October

4 KEY FIGURES Q ) Key figures (NOK million) Q Q Revenue 51,4 55, Total operating costs 39,6 38,2 Adjusted EBITDA 11,8 17,4 Adjustments: IPO-costs 0,9 2,7 Transaction costs acquisition of Minilageret - 1,9 Q Revenue Q Q2 Q Adjusted underlying EBITDA 1 Notes: 1) Unaudited figures. EBITDA adjusted for non-recurring costs of NOK 4.6m in Q and NOK 0.9m in Q

5 KEY FIGURES Q (Amounts in NOK million) P&L and cash flows Balance sheet KEY FIGURES Q3 17 Q2 17 Q3 16 YTD 17 YTD 16 FY 16 Unaudited Including 30 September subsequent 2017 events 2 Revenue Total operating costs 1 Underlying EBITDA ASSETS Investment property Property, plant and equipment Underlying EBIT Underlying Pre-tax profit Underlying Net profit Goodwill Total non-current assets Other current assets Cash and bank deposits Current lettable area (thousands m 2) Total current assets Lettable area under development (thousands m 2 ) N/A 11.8 N/A N/A TOTAL ASSETS Cash flows For the nine months ended (unaudited) Net cash flows from operating activities 31 Net cash flows from investing activities -102 Net cash flows from financing activities 83 Cash and cash equivalents at beginning of the period 34 Cash and equivalents at end of the period 47 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 Notes: 1) Adjusted for IPO and non-recurring items of NOK 4.6 million in Q and NOK 5.5 million YTD 2) Illustration of financial position after private placement. Balance sheet as of 30 September 2017 is adjusted for net proceeds from private placement of NOK 193 million and acquisition of 5 new properties amounting to NOK 22 million 5

6 KEY FIGURES Q Current lettable area m 2 Lettable area under development m 2 2 new facilities of 800 m 2 opened Acquisition of 4 properties with approximately m 2 lettable area Average rent 1) NOK per m 2 Occupancy 1) 85% Notes: 1) Average occupancy and rent price per m 2 for all sites with more than 12 months of operation 6

7 REVENUE DYNAMICS Lettable area Occupancy 1) Rent 1) per m 2 Revenue Prospects Lettable area under development Current lettable area x 90% Target occupancy Current occupancy 85% for facilities open for 2,343 more than 12 months Identified upside to current rent levels in OKM x = Current avg. rent level for mature facilities Significant upside potential Other income Reported in Q Detailed plan in place to increase lettable area Potential to increase occupancy in CSS and Minilageret Expected to remain fairly flat as growth and occupancy are main focus Strong revenue growth expected going forward Note: 1)Average occupancy and rent per m 2 for sites with more than 12 months of operation 7

8 STRONG LINK BETWEEN REVENUE GROWTH AND ABSOLUTE GROWTH IN PRE TAX FREE CASH FLOW Strong link between further growth in revenue and EBITDA 56 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 38 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 8

9 ACQUISITIONS IN THE QUARTER Acquisition of 4 new properties with a potential CLA of 3,300 m 2 Oslo Sandnes Stavanger Vestby Signed: 1 July 2017 Signed: 1 August 2017 Signed: 1 September 2017 Signed: 25 August 2017 Type: Property (building) Type: Property (building) Type: Property (building) Type: Property (land) Potential lettable area: 1,122 m 2 Potential lettable area: 783 m 2 Potential lettable area: 578 m 2 Potential lettiable area: 816 m 2 Location: Located in Groruddalen with great visibility and a significant catchment area. Will address the growing demand for selfstorage in the northern part of Oslo Location: Our first temperate facility in Sandnes, Norway s 7th largest city. Attractive location, just south of the city, close to future housing developments Location: Our third facility i Stavanger. With this new Facility in the Northern part of the city, we strengthen our position as the market leader in the Greater Stavanger Region Location: Greenfield project in a growing region south of Oslo. A local market as well as the opportunity to attract price sensitive customers from Oslo. 9

10 THE COMPANY 10

11 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 Currently, operational facilities have a total lettable area of 101,835 m storage rooms in 30 cities and towns 11

12 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 26 temperate storage facilities across One of the leading self-storage providers in the Scandinavian market Located in the Oslo, Stockholm and Copenhagen 58,594 m 2 of lettable storage space OK Minilager Countrywide, discount-priced offering of self-serviced storage facilities in Norway 56 facilities located across Norway 28 drive-in storage facilities and 28 temperate storage facilities 2 nd largest player in Norway, behind CSS Self service, open 24 hr/day and 7 days a week 43,241 m 2 of lettable storage space 12

13 CURRENT PORTFOLIO PROVIDES A STRONG PLATFORM FOR FUTURE GROWTH WITH TWO DIFFERENT MARKET SEGMENTS City Self-Storage OK Minilager Prime locations in all Scandinavian capital cities Oslo Lillestrøm Asker Drammen Country-wide offering with presence in smaller cities Lillestrøm Odense Oslo Copenhagen Stockholm Asker Prime areas for self storage Climate controlled self storage Bulk storage and (outdoor) containers 13

14 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 establishes first sites in Spain and Czech Republic 2006: Continued expansion with opening of first site in Poland 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 2009: OK Minilager was established by Fabian and Gustav Søbak 2014/15: CSS divests operations in CEE and Spain and becomes a pure Scandinavian player 2016: Ferncliff invested in OK Minilager 2016: OK Minilager acquires CSS and becomes a truly leading Scandinavian player 2017: Renamed Self Storage Group, acquisition of Minilageret AS and listing on Oslo Stock Exchange = City Self Storage = OK Minilager = Self Storage Group 14

15 THE MARKET 15

16 SCANDINAVIA LAGGING IN TERMS OF SELF STORAGE SPACE PER CAPITA (m 2 ) "Mature markets" "European leaders" "Small markets with low awareness" Source: FEDESSA European Self Storage Survey 2016, The SpareFoot Storage Beat, IBISWorld 16

17 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

18 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 18

19 GROWTH STRATEGY AND OUTLOOK Market Strategy Capacity Occupancy Rent Expansion Operating efficiency Improve the mix between owned and leased facilities Focus on increasing occupancy and rent levels at existing facilities Operating efficiency Opportunistic approach Focus on increasing occupancy and rent levels at existing facilities Operating efficiency Opportunistic approach 19

20 Appendix 20

21 THIRD QUARTER AND YTD 2017 COMPREHENSIVE INCOME Profit and loss statement 1) NOK 000 s Q Q YTD 2017 YTD 2016 Revenue Other operating income 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 and diluted (in NOK) 0,16 0,14 0,63 0,46 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 4,3 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 4,6 million in Q3 and NOK 5,5 million YTD The fair value of investment property is based on external valuations in combination with management estimates and judgments Notes: 1) Unaudited figures 21

22 YTD 2017 FINANCIAL POSITION Financial position (NOK 000 s) 1) ASSETS 30 Sept Dec 2016 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 EQUITY AND LIABILITIES 30 Sept Dec 2016 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 Comments Total assets increased to NOK 503 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 Net interest-bearing debt was NOK 79.6 million Other current liabilities increased due to settlement of Minilageret Equity ratio was 56% Negative working capital due to invoicing of customers in advance and stable cost TOTAL EQUITY AND LIABILITIES Notes: 1) Unaudited figures 22

23 YTD 2017 CASH FLOW Condensed consolidated statement of cash flows 1) NOK 000 s YTD 2017 YTD 2016 Cash flows from operating activities Profit before tax Income tax paid Interest paid Interest received Depreciation Gain/loss on disposal of property, plant and equipment 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 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 4 investment properties and 2 company assets aqusitions Low capex as maintenance is posted as property cost Financing activities Private placement in January New loan facility with Handelsbanken in July Repayment of shareholders SSG s cash balance at the end of Q3 was NOK 47 million Notes: 1) Unaudited figures 23

24 THANK YOU 24