SELF STORAGE AN ATTRACTIVE INVESTMENT WITHIN REAL ESTATE COMPANY - PowerPoint PPT Presentation

1 – SELF STORAGE AN ATTRACTIVE INVESTMENT WITHIN REAL ESTATE – COMPANY PRESENTATION IN CONJUNCTION WITH IPO ON NASDAQ FIRST NORTH 24STORAGE AB (PUBL) 1

1. INTRODUCTION PAGE 3 2. THE SELF STORAGE MARKET PAGE 5 3. COMPANY OVERVIEW PAGE 15 4. SHAREHOLDERS & CORPORATE GOVERNANCE PAGE 28 5. FINANCIALS PAGE 32 6. APPENDIX PAGE 37 2

24STORAGE AT A GLANCE Fast growing operator with ambition of becoming a leading • 23 SELF STORAGE FACILITIES player in the Swedish market 3 REGIONS OF GROWTH 24Storage operates and develop own self storage facilities • (mainly freehold not leasehold) >50,000 SQM • Combining a proven self storage model with e-commerce and >10,000 STORAGE UNITS 1.1 bn “proptech” enables a centralized and scalable business • Focus on continued expansion in metropolitan growth areas SEK such as Stockholm, Gothenburg and Malmö Property value Revenue Goal to expand with 3-5 new self storage facilities per year - • 24Storage SEKm SEKm realized since inception in 2015 property value 1 200 70 Existing shareholders includes Ernström Kapital, Swedia HighP • (Staffan Persson), Michael Fogelberg, Realm (the Tilander 60 1 000 family), Hajskäret Invest (Carl Rosvall), Per Josefsson and Inbox 50 Capital (the Wattin family) 800 40 600 30 400 20 200 10 0 0 2015 2016 2017 2018 Q3 2015 2017 Jan-Sep 2019 2019 23 7 9 14 2018 20 2019 # Facilities # 2015 2016 2017 YTD 3 Introduction

INVESTMENT HIGHLIGHTS 1 2 3 4 5 Proven ability A story of rapid Attractive Urbanization Leading player in to develop and growth and self storage is the primary under-penetrated operate storage improving asset set for demand driver Swedish market with “proptech” profitability long-term value approach Urbanization, housing Sweden is a growing and 23 high quality facilities in Property portfolio Revenue CAGR of 46% shortages, limited storage under-penetrated market prime locations operated provides asset backed since 2016 with NOI space, high property prices with favourable real estate through a centralized valuation and viewed as margin to improve as and more benefit the self market drivers supporting operational model with a property portfolio matures fairly “recession proof”, storage industry as a a freehold strategy. unique tech platform for outperforming other real providing proof of a whole. genuine automation. estate assets in the past. scalable business model. Swedish citizens move 11 Second largest player in Current portfolio of over Existing portfolio has NOI of 70% at mature level times during a lifetime in Sweden with significant 10,000 storage units in significant upside implies high return average, more often than growth ambitions, three regions of growth potential at mature level potential with revaluation Europeans. growing with 3-5 new self with more than 6,000 from current occupancy of of property as proof. storage facilities per year. customers. 70% to 90%. 4 Introduction

5 THE SELF STORAGE MARKET 5

FAVOURABLE REAL ESTATE MARKET DRIVERS IN SWEDEN STIBOR 3M Development in housing prices 3,0 % 2,5 % 2,0 % Stockholm Gothenburg Malmö Sweden Index 1,5 % 1,0 % 170 0,5 % 160 0,0 % 150 -0,5 % 140 -1,0 % 2010 2018 130 120 Employment rate 110 70% 100 90 68% 80 66% 64% 62% 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: SCB, Thomson Reuters, Ekonomifakta 6 The Self Storage Market

A “RECESSION - PROOF” INVESTMENT CLASS WITH STRONG HISTORICAL RETURNS Average total return and average price return by US property sectors 1994 - 2018 Self storage has outperformed other real estate asset classes over the last decades… 20% 17% Average total return Total return Total annual return (%) 15% 13% 13% 13% 12% 12% 10% 9% 10% 5% 0% Office Industrial Retal Residential Diversified Health Care Lodging/Resorts Self Storage ...and is viewed as fairly “recession proof” in light of strong relative performance during the US financial crisis Total annual return (%) 60% Difference Average other real estate segments Self Storage 40% 41% 35% 3% 20% 5% 3% -7% 0% 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 -20% -5% -1% -19% -40% -40% -60% Recession Source: Company Data, Self-storage Almanac 2018 NAREIT Link: https://www.reit.com/data-research/reit-indexes/annual-index-values-returns 7 The Self Storage Market

URBANIZATION AND SMALLER LIVING SPACES DRIVING DEMAND GROWTH Major part of population live in urban areas with limited space and high property prices. • An increased proportion of the Swedish population want to live in metropolitan areas, which increases crowdedness. • ~ 600,000 new living spaces will be needed until 2025 – most being built with too small or with no storage at all. 1 • Swedish citizens move more often than Europeans and Sweden have experienced an increase of >25% of population in Stockholm, Gothenburg and Malmö since year 2000 (13% rest of Sweden). 2 Urban population (% of total population) 88% 87% 86% 85% 84% 83% 82% 81% 0% 80% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1 Source: The National Board of Housing, Building and Planning, report of new living spaces 2018-2025 (In Swedish). 2 Source: SCB, 2018. 8 The Self Storage Market

GROWING TREND IN AN IMMATURE EUROPEAN MARKET US vs 2018 Sweden Europe US SWE Growing European self storage market Self-storage facilities # 159 3,792 54,100 340x Lettable area, Sqm per capita Lettable sqm per capita 0.04 0.02 0.87 million sqm 20x 10 0,025 Self-storage facilities 15.9 7.7 165.6 9,5 10x per million inhabitants 0,02 9 Population density 23 125 25 8,5 +12% per sqkm 0,015 vs -17 8 The self-storage market has its roots in the United States, where • 0,01 7,5 it become popular in the 1960’s, spreading to Europe in the 1990’s. 7 0,005 The European market is far less developed than the US market, • 6,5 but growing steadily. Number of facilities and lettable area have experienced CAGR’s of 11.7% and 6.3% since 2014, respectively. 6 0 The ten largest European self storage operators account for 19% • 2015 2016 2017 2018 of the number of facilities in Europe and approx. 35% of the Total lettable sqm Lettable sqm lettable area. area per capita • Facilities range in size from less than 2,000 sqm to over 6,000 sqm, with the average being 4,200 sqm. Source: FEDESSA Annual Survey 2018 and 2019. 9 The Self Storage Market

PEOPLE MOVING BEING THE PRIMARY DEMAND DRIVER IN SWEDEN Sweden has one of the highest share of population who moved in the last five years, 41% (e.g. Spain, 13%). 1 • Swedish citizens move 11 times during a lifetime in average. 2 • • Any form of change is a demand driver, primarily people moving and any changes in family situation or work situation. % population in cities who moved within the last five years 50% 40% 30% 20% 10% 0% 1 Source: FEDESSA Annual Survey 2018. 2 SCB, 2018. . 10 The Self Storage Market

SWEDEN IS A FRAGMENTED MARKET - MAJORITY OF THE OPERATORS 1-2 FACILITIES EACH Almost all brands providing self storage in Sweden today • were founded after 2000. Operators by # facilities 2018 The four largest operators constitute ~45% of total Swedish • market with presence of large multinational firms. 6 The largest player is Shurgard, listed on Euronext, Brussels. • 6 20 Highly fragmented market due to low barriers to entry, • particularly for low-end facilities. Scale up to a quality portfolio in metropolitan growth areas, • 24Storage Shurgard 36 could be considered as high barriers of entry, due to requirement of location, knowledge and substantial capital. Largest competiors City Self- Pelican >60 self-storage operators, where the majority owns 1-2 • # facilities,Sweden 2018 Storage facilities each implies room for consolidation. Company Initiation SWE # Facilities 2018 Share of # facilities, Sweden 2018 Shurgard 1997 36 Largest operators by revenue, 24Storage 2015 20 13% Magasinera 2006 11 SEKm 2018 1 Big Pink 2014 9 3 420 Servistore 2002 7 Pelican Self Storage 2007 6 2,3 City Self-Storage 1993 6 82 57 35 Others 64 24Storage Total Total 159 Source: FEDESSA Annual Survey 2018. 1 Owned by the Swedish real estate company Klövern. 2 Owned by Self Storage Group. 3 Mainly leasehold facilities. 11 The Self Storage Market