1

1

Fredrik SandelinCEO

2020-04-29

INTERIM REPORTQ1 2020

22

1. Q1 Highlights

2. About 24Storage

3. Financial results

4. Business update

5. Outlook

6. Shareholders and financial calendar

3

STABLE FIRST QUARTER WITH 24 PERCENT GROWTH AND IMPROVED GROSS MARGIN

+50% 1.2 SEK Bm

36% 56%+24% 1 2 3 4 5

Revenue increased by 24% vs Q1 2019.

Gross profit increased by approx. 50% vs Q1 2019.

Property valueSEK 1,190.8 m (1,142) as of 31 March 2020.

LTV 56% (53). Cash and cash equivalents SEK 145 m (189).

Equity/assets ratio 36% (37).

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4

ABOUT 24STORAGE

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24STORAGE IS A SELF STORAGE COMPANY OFFERING STORAGE SPACE OUT OF HOME

Owns, operates and develops own self storage facilities throughout Sweden

One of the leading players in the Swedish market

Focus to expand in the metropolitan areas Stockholm. Gothenburg and Malmö

Cash flow comes from operating activities such as renting out storage space to residential and corporate customers

By digitalizing manual processes a centralized operational models is enabled. opening up for a scalable business

23 SELF STORAGE FACILITIES3 REGIONS OF GROWTH

53,600 SQM>10,000 STORAGE UNITS

6

12% 13% 12% 13%

9%

13%10%

17%

0%

5%

10%

15%

20%

Office Industrial Retal Residential Diversified Health Care Lodging/Resorts Self Storage

Tota

l ann

ual r

etur

n (%

)

Self storage has outperformed other real estate asset classes over the last decades…Total return

THE ONLY SELF STORAGE COMPANY ON THE STOCKHOLM STOCK EXCHANGE

Source: Company Data, Self-storage Almanac 2018 NAREIT Link: https://www.reit.com/data-research/reit-indexes/annual-index-values-returns

-19%

-40%

3%

-1% -5%

-7% 5%

35% 41%3%

-60%

-40%

-20%

0%

20%

40%

60%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Tota

l ann

ual r

etur

n (%

)

...and is viewed as fairly “recession proof” in light of strong relative performance during the US financial crisis

Difference Average other real estate segments Self Storage

Average total return

Average total return and average price return by US property sectors 1994 - 2018

Recession

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MARKET DRIVERS

Urbanizationis the primary demand

driver

Urbanization, housing shortages, limited storage space, high property prices and more benefit the self storage industry as a whole.

Swedish citizens move 11 times during a lifetime in average, more often than Europeans.

Proven abilityto develop and operate storage with “proptech”

approach

3

23 high quality facilities in prime locations operated through a centralized operational model with a unique tech platform for genuine automation.

Current portfolio of over 10,000 storage units in three regions of growth with more than 6,000 customers.

Leading player in under-penetrated Swedish

market

Sweden is a growing and under-penetrated market with favourable real estate market drivers supporting a freehold strategy.

Second largest player in Sweden with significant growth ambitions, growing with 3-5 new self storage facilities (+10,000 sqm) per year.

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8

2019 Sweden Europe US

Self-storage facilities # 206 4,290 54,000

Rentable sqm per capita

0.05 0.02 0.87

Self-storage facilities per million inhabitants

20.5 8.7 166

Population density per sqkm

23 125 25

Source: FEDESSA Annual Survey 2019.

260x

USvs

SWE

18x

8x

GROWING TREND IN AN IMMATURE EUROPEAN MARKET

0

0,005

0,01

0,015

0,02

0,025

0

2

4

6

8

10

12

2015 2016 2017 2018 2019

European self storage market

Total rentable area, million sqm Rentable sqm per capita

Million sqm Sqm per capita

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PEOPLE MOVING BEING THE PRIMARY DEMAND DRIVER IN SWEDEN

1 Source: FEDESSA Annual Survey 2018. 2 SCB, 2018..

41%

0%

10%

20%

30%

40%

50%

% population in cities who moved within the last five years

An averageSwede moves

11times in a lifetime

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SELF STORAGE INVESTMENT CYCLE

PLANNING AND CONSTRUCTION(6-18 MONTHS)

RENT UP PERIOD(3-4 YEARS)

REVENUE OPTIMIZATION(5- YEARS)

COST DEVELOPMENT

REVENUE DEVELOPMENT

TIME

-40%

-20%

0%

20%

40%

60%

80%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

NOI margin simulation year 1 to 6

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PROPTECH – ENABLES A CENTRALIZED OPERATIONAL MODEL

Temperature control

Customer safety and theft protection

Centralized and remote control from anywhere

Ensuring optimal storage conditions

Live video surveillance

Video recording

Fire alarmBurglar alarm

Automated doors

Automated gates

Automated lights

Humidity control

24Storage -Smart Facility

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DIGITIZING CUSTOMER PROCESSES

Scheduled appointments by CSC and traditional

manned stores

Customer service adapted in all channels

Meeting appointments Fully automatedprocesses

Customer self-service at location

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KEY BENEFITS OF CENTRALIZED OPERATIONAL MODEL

Higher availability for customers- Extended opening hours vs. competitors1

2

3

4

More flexible to meet customer demands- Available on more channels (web, phone, chat, video)

Lower FTE cost per facility- 0.8 FTE on average per 500 units (peers 2-2.5 FTE per facility)

Standardized processes and dedicated staff for different tasks - Quality assurance

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STORAGE SPACE OUTSIDE HOME IS NEEDED BY BOTH RESIDENTIAL AND CORPORATE CUSTOMERS

85%

15%

CorporateResidential

CUSTOMERS

Customer split

AVERAGE RENTAL TIME PER CUSTOMER

15 months

Movers Renovators Collectors

Sales people Handyman's Longtime archiving E-commerce

Sales per channel

*Other = E-mail, chat, intercom and kiosk

~ 6,000 49%

35%

9%

4% 3%

Call Web Walk-in Chat Kiosk

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FINANCIAL RESULTS Q1 2020

16

0

5

10

15

20

25

2017 2018 2019 2020

Revenue per quarter

Q1 Q2 Q3 Q4

• Revenue increased by 24% vs Q1 2019 to SEK 20.5 m (16.5)

• Occupancy rate in comparable facilitiesincreased vs 2019

• Higher average prices in comparablefacilities vs 2019

• Added capacity• 3 new facilities vs Q1 2019

Q1 2020: CONTINUED GROWTH IN REVENUE

+24%SEKm

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OCCUPANCY RATE VS MARKET INDICATING GROWTH OPPORTUNITY

Source: FEDESSA Annual Survey 2014-2019.

• Growth strategy affects occupancy rate in short term

• Added capacity lowers the average occupancy rate as it takes time to fill and achieve optimal levels of occupancy

• Optimal occupancy rate for a mature facility (year 6) is normally just over 90 percent

• Occupancy rate in comparable facilitiesincreased vs 2019

72% 68% 67% 68%

0%10%20%30%40%50%60%70%80%90%

2017 2018 2019 Q1 2020

Occupancy rate

Europe Sweden 24Storage

24Storage is in a rent-up

phase, with lower

occupancy rate vs market.

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INCREASED AVERAGE PRICES IN COMPARABLE FACILITIES VS 2019

SEK

2 350

3 051

1 606

2 889 2 846 2 824

1 538

-

500

1 000

1 500

2 000

2 500

3 000

3 500

Sweden GreatBritain

Norway France Spain Europe US

Average rent per sqm 2019SEK

0

500

1 000

1 500

2 000

2 500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2017 2018 2019 2020

24Storage average rent per sqm

24Storage is in a rent-up

phase, with lower average rent per sqm vs market.

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• Revenue increased by 24% vs Q1 2019• Operating costs only increased by 15% vs Q1 2019• Gross profit improved by approx. 50% vs Q1 2019• Newly opened facilities initially impact profit

ECONOMIES OF SCALE IN BUSINESS MODEL

Change in gross profit, SEKmResult

2018

Change 2019 comparable

facilities

Result 2019 comparable

facilities New facilities Other Result 2019

Net sales 16.5 2.8 19.3 0.9 0.3 20.5

Operating cost -12.4 -0.5 -12.9 -1.0 -0.4 -14.3

Gross profit (NOI) 4.1 2.2 6.4 -0.1 -0.1 6.2

Gross margin (NOI margin) 25% 33% 30%

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• Administration costs SEK 10.6 m (9.2) • Including depreciation of SEK

2.5 m (1.8), mainly proprietary ERP• Unrealized change in value of property

portfolio SEK 5.7 m (3.1) • Net financial costs SEK 9.0 m (8.4)• Profit after tax SEK -7.6 m (-10.3)

PROFIT/LOSS Q1 2020

Income statement, SEKm2020

Jan-Mar2019

Jan-Mar2019

Full year

Net sales 20.5 16.5 71.7

Operating cost -14.3 -12.4 -55.3Gross profit (NOI) 6.2 4.1 16.4

Administrative expenses -10.6 -9.2 -47.4Profit/loss before value adjustments -4.4 -5.1 -30.9

Change in fair value of investment properties 5,7 3.1 40.6EBIT 1.3 -1.9 9.7

Financial income 0.0 0.0 0.0Financial expenses -9.0 -8.4 -45.8Net financial items -9.0 -8.4 -45.8

Profit/loss before tax -7.7 -10.3 -36.1Tax 0.1 0.0 -1.5Profit/loss after tax -7.6 -10.3 -37.6

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• Property value SEK 1,190.8 m (1,141.5) as of 31 Mar 2020 (31 Dec 2019)

• Cash and cash equivalents SEK 144.8 m (189.3)

• Equity / assets ratio 36% (37) • Net debt SEK 663.7 m (606.4)• Loan ratio SEK 56% (53)

STRONG FINANCIAL POSITIONBALANCE SHEET, SEKm

202031 Mar

201931 Mar

201931 Dec

AssetsFixed assets 1,227.0 1,059.0 1,183.1Current assets 179.6 97.1 210.6Total assets 1,406.6 1,156.1 1,393.7

Equity and liabilitiesTotal equity 502.1 313.2 509.7

Total long term debt 593.8 682.9 604.0Total current liabilities 310.6 160.0 280.0Total liabilities 904.5 842.9 884.0

Total equity and liabilities 1,406.6 1,156.1 1,393.7

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VALUATION ASSUMPTIONS FOR PROPERTIES

Valuation assumptions 2019 2018

Discount rate year 1-10 7.75% - 9.25%

Discount rate for residual value, owned properties 6.0% - 7.0% 6.0% - 9.0%

Discount rate for residual value, leased properties 9.0% - 10.0%

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• Cash flow from operating activities SEK -15.4 m (-16.0)

• Operations in a build-up phase • Cash flow from investing activities SEK

–39.0 m (-27.5)• Property acquisitions and ongoing

construction projects • Cash flow from financing activities SEK

9.8 m (43.6)• Bank loans net increase of SEK

11.2 m (42.3)

CASH FLOW Q1 2020

CASH FLOW SEKm2020

Q12019

Q12019

Full year

Cash flow from operating activities -15.4 -16.0 -53.1

Acquisition of properties -22.8 -10.3 -30.8Investment in properties -15.9 -17.9 -80.5Acquisition of tangible fixed assets -0.1 -0.4 -1.9Acquisition of intangible fixed assets -0.2 - -0.4Change in financial fixed assets 0.0 1.0 -1.4Cash flow from investing activities -39.0 -27.5 -115.0

New share issues - - 223.8Options issued - 1.3 1.3Borrowings 14.5 45.0 242.3Amortization of loans -3.3 -2.7 -90.8Amortization of leasing loans -1.4 - -2.7Change debenditure loan - - -79.0Cash flow from financing activities 9.8 43.6 294.9Total cash flow -44.5 0.1 126.8

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24

BUSINESS UPDATE

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GROWTH STRATEGY SINCE START

0

200

400

600

800

1 000

1 200

2015 2016 2017 2018 2019

SEKm Property value

0

10 000

20 000

30 000

40 000

50 000

60 000

2015 2016 2017 2018 2019

sqm Built out area

-

2 000

4 000

6 000

8 000

10 000

12 000

2015 2016 2017 2018 2019

Number of storage units

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• The effects from Covid-19 on business so far limited • Self storage is viewed as fairly “recession proof”

• Large number of small customers that each pay a limited amount

• Countercyclical factors such as people need to move to get a new job or to lower housing costs

• 23 facilities can be operated from one location (that could be located virtually anywhere)

• Following the development closely and preparing for an uncertain future

• Reducing costs• Strengthening liquidity

CENTRALIZED BUSINESS MODEL MAKES US LESS VULNERABLE

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• Construction of a new storage facility in Uppsala started

• Start of conversion of recently acquired property in Vällingby, Stockholm

• 2 top modern facility with a high degree of automation planned to open in H2

• Phase 2 in construction of facility in Hyllie, Malmö initiated

ONGOING CONSTRUCTION PROJECTS PROCEEDING ACCORDING TO PLAN

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PORTFOLIO OVERVIEW

6,00023F AC I L I T I E S TE N AN TS

C U R R E N T L E T T A B L E M ²

~70O C C U P AN C Y %

~2,000AV E R AG E R E N T

P E R O C C M ²

AS S E T V AL U E S E K B N

$ =

>53,000 1.2

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Close to customers - majority of potential customers live, workor shop within 15 minutes (business is part of the pattern)

High visibility from major roads creates top of mind awareness

Enabling authority approvals for residential builders - facility acts as noise protection or act as illuminated pedestrian passage for a safer local environment

LOCATION IS KEY

24Storage facilities in Stockholm

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• Facilities can be planned into locations where other operations do not fit

• Offer smarter storage to the future city that requires smarter solutions

• Building a storage facility is less resource and energy consuming

• Environmental focus in the construction process

• Low electricity consumption in storage facilities (maximum 10-12 degrees)

• Nearly all the energy consumed comes from hydroelectric power (0 grams of CO emissions)

• IOT project with environmental focus in the connected and automated operation

• Contributes to local communities through dedicatedsponsorship

A PART OF THE SUSTAINABLE CITY

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OUTLOOK

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• Ambition to open three to five new self storage facilities per year

• Will add about 10,000 sqm of rentable space in capacity each year

• Already decided projects: +9,700 sqm in 2020• Strong pipeline of potential new establishments

GROWTH STRATEGY REMAINS

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LARGEST SHAREHOLDERS AS OF 31 MARCH 2019

SHAREHOLDER NUMBER OF SHARES HOLDING (%)

Ernström Kapital AB 2,919,720 19.56Staffan Persson1) 2,250,000 15.08Tilander family1) 1,460,820 9.79Michael Fogelberg and family2) 1,401,981 9.39Per Josefsson2) 997,420 6.68Carl Rosvall1) 727,740 4.88Ulf and Bo Eklöf1) 727,740 4.88Jan-Olof Backman and family2) 550,000 3.69Adrigo Asset Mangement 527,451 3.53Wattin family1) 497,760 3.34Others 2,863,388 19.18Total number of shares 14,924,020 100.00

1) Through company.2) Privately and through company.

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Annual General Meeting 28 May 2020 Interim report Q2 2020 13 August 2020Interim report Q3 2020 5 November 2020

FINANCIAL CALENDAR 2020

3535

Contact information

Fredrik Sandelin, CEOTel: +46 730 68 36 58

fredrik.sandelin@24storage.com

24Storage AB Box 7723, SE-103 95 Stockholm

24storage.se/investerare