Selvaag Bolig ASA

Investor Presentation • Nov 10, 2022

Oslo, 10 November 2022

Sverre Molvik, CEO Christopher Brunvoll, CFO

Q3 2022

2

Agenda

Highlights

Operational update

Financial update

Market

Outlook and summary

Highlights

• · Satisfactory sales in Q3 considering challenging market conditions
• · Solid Q3 results
• · Construction cost have peaked

Key financials Q3 2022

* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses included in project costs. ** EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies.

Agenda

Highlights Operational update Financial update Market Outlook and summary

Business model minimizes risk

• Construction cost development
• Increased due to geopolitical unrest and shortages after COVID-19 pandemic
• New projects in certain areas postponed because margins are not satisfactory
• Cost peak seems to have been reached
• Risk mitigation
• Fixed construction cost secured for all units under construction
• Minimum presale of 60% before construction start
• Well prepared for shift in market sentiment
• Approximately 775 units ready for market introduction in H1 2023
• Sales starts dependent on market conditions

Sales value and units sold

Note: Sales value is adjusted for Selvaag Bolig's share in joint ventures.

Units sold are sales contracts entered into with customers pursuant to the Norwegian Housing Construction Act. In accordance with the IFRS, they are recognised as income on delivery.

Rolling sales value and units sold

Note: Sales value is adjusted for Selvaag Bolig's share in joint ventures.

*Total columns show Selvaag Bolig's gross sales. **Columns excluding dotted areas show Selvaag Bolig's net sales.

Sales value 12-month rolling Units sold 12-month rolling

Units sold are sales contracts entered into with customers pursuant to the Norwegian Housing Construction Act. In accordance with the IFRS, they are recognised as income on delivery.

Construction starts and completions

Construction starts and completions per quarter

Note: Number of units are adjusted for Selvaag Bolig's share in joint ventures.

Units under construction and completions

Sales value units under construction Expected completions per quarter ^{160 161 178} 51 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Wholly owned units Partly owned units

• · 73% of units under construction sold by Q3 2022

• · 75% of construction volume in Greater Oslo Area* in Q3 2022

• · Expected completions for the full year 2022: 586

• · 94% of 2022 completions sold by Q3 2022
• · Expected completions for the full year 2023: 744

Note: Sales value and number of units are adjusted for Selvaag Bolig's share in joint ventures. * Includes: Oslo, Lørenskog, Follo, Tønsberg, Asker.

Agenda

Highlights Operational update Financial update Market Outlook and summary

Income statement highlights Q3 2022 (IFRS)

^* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses included in project costs.

Q3 2022 proforma figures including proportionate share of JV

Operating revenues (IFRS)

^* EBITDA is profit before interest, taxes, depreciation and amortization.

^** EBITDA adjusted is excluding financial expenses included in project costs. The difference compared to reported EBITDA is due to interest, taxes, depreciation and amortization in JVs.

Income statement highlights Q3 2022 (NGAAP)

Revenues and EBITDA margin (NGAAP)* 12 month-rolling revenues (NGAAP)*

^* Construction costs are exclusive of financial expenses in the segment reporting (NGAAP). Note: EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies.

Cash flow development Q3 2022

NOK million

Note: Items of less than NOK 55 million are excluded from the cash flow overview.

• · Cash flow from operations positive at NOK 126m driven by units delivered and solid earnings
• · Cash flow from investing activities positive at NOK 119m mainly due to dividends received from associated companies
• · Cash flow from financing activities negative at NOK 180m due to dividend payments of NOK 187m

775

-187

Dividends paid to equity holders of Selvaag Bolig ASA

Cash and cash equivalents at 30 September 2022

Balance sheet highlights Q3 2022

Balance sheet composition

Inventories (property) Q3 2022

Q2 22 vs Q3 22 Inventory value development

• · Land value down NOK 44m
• · Work in progress up NOK 36m
• · Finished goods up NOK 11m

NOK million

Debt structure

	Loan facility	Drawn at 30.9.22 (NOKm)	Interest rate margin*
1	Construction loan facilities from a range of Nordic credit institutions	1 743	1.65% - 2.40%
2	Debt to Urban Property**	587	3.75%***
3	Land loan facilities from a range of Nordic credit institutions	237	1.50% - 2.95%
4	NOK 150 million revolving credit facility from DNB maturing in 2023	0	2.50% - 3.00%
5	NOK 150 million working capital facility from DNB with annual renewal	0	2.10%
6	NOK 300 million infrastructure facility maturing in 2024	0	2.50%

Total Q3 2022 net interest-bearing debt NOK 1 792 million

Total Q2 2022 net interest-bearing debt NOK 1 829 million

Interest-bearing debt at 30.9.22

NOK million

* Margin added to 3m NIBOR.

** Repurchase agreements portfolio B and seller credits. *** + 2.00% fee at property repurchase.

Return on equity (IFRS)

^{530 505}

466

586

512

26% 23%

12-month rolling net income (NOKm) ROE (%)

* Net income attributable to shareholders in Selvaag Bolig ASA.

** Based on equity at the start of the period (attributed to shareholders in Selvaag Bolig ASA).

Q1 2020 Net income excluding Other gains of NOK 1 029m

Agenda

Highlights Operational update Financial update Market Outlook and summary

Estimated completions in Oslo well below forecasted need

Sources: Historic data: Statistics Norway (SSB), Forecasted housing completions: SA – Hawii Analyse, Forecasted housing need next 5 years: Prognosesenteret. Note: Number of persons per household in Oslo: 1.90.

Note: Housing need calculated on parameters such as number of persons per household, lag on housing development, housing demolition. Note: Completions exclusive of student- and senior housing.

* Estimates based on actual sales, future sales starts, and historical data.

** Uncertainty due to project lead-time.

Estimated completions in Akershus*

Sources: Historic data: Statistics Norway (SSB), Forecasted housing completions: Hawii Analyse, Forecasted housing need next 5 years: Prognosesenteret. Note: Number of persons per household in Oslo: 1.90.

Note: Housing need calculated on parameters such as number of persons per household, lag on housing development, housing demolition. Note: Completions exclusive of student- and senior housing.

* Akershus county = Viken county ex. Buskerud and Østfold.

** Estimates based on actual sales, future sales starts, and historical data.

22 *** Uncertainty due to project lead-time.

Newbuild market update

Source: SA – Hawii analyse. Incudes projects with 2 units or more * Including withdrawls

Newbuild market update

Source: SA – Hawii analyse. Incudes projects with 2 units or more * Including withdrawals

Source: Hawii analyse, Statistics Norway.

Regional Newbuild availability on 31 October, 2020-22

Incudes projects with 2 units or more

^* Akershus county = Viken ex. counties Buskerud and Østfold.

Regional Second-hand inventory on 31 October, 2019-22

26

Source: Eiendomsverdi, Statistics Norway.

Incudes projects with 2 units or more

* Akershus county = Viken ex. counties Buskerud and Østfold.

** Includes Stavanger, Sola, Sandnes, Randaberg.

*** Population at YE 2021.

Regional price* development 1.1-31.10, 2012-22

Source: Eiendom Norge.

* Nominal price change.

** Includes Stavanger, Sola, Sandnes, Randaberg.

Fornebu | Greater Oslo

• · ~ 2 000 units total (JV)
• · ~ 500 Pluss units
• · Expected sales start: 2025

Bjerke | Oslo

• · ~ 1 500 units total
• · ~ 300 Pluss units
• · Expected sales start: 2025

Lørenskog stasjonsby | Greater Oslo

• · ~ 2 000 units total
• · ~ 200 Pluss units
• · ~ 800 units remaining for sale

Skårerbyen | Greater Oslo

• · ~ 1 100 units total
• · ~ 250 Pluss units
• · ~ 450 units remaining for sale

Fredrikstad | Greater Oslo

• · ~ 2 000 units (JV)
• · ~ 400 Pluss units
• · Expected sales start: 2023

Ringve Pluss | Trondheim

• · ~ 600 units total (JV)
• · ~ 400 Pluss units
• · ~ 500 units remaining for sale

Minde | Bergen

• · ~ 650 units (JV)
• · ~ 200 Pluss units
• · Expected sales start: 2023

Sandsli | Bergen

• · ~ 600 units total
• · ~ 250 Pluss units
• · ~ 450 units remaining for sale

Barkarby Pluss | Stockholm

• · ~ 220 units
• · ~ 220 Pluss units
• · Expected sales start: 2023

Kaldnes Brygge| Greater Oslo

• · ~ 1 500 units total (JV)
• · ~500 Pluss units
• · ~ 550 units remaining for sale

Solbergskogen Pluss | Greater Oslo

• · ~ 300 units
• · ~ 300 Pluss units
• · Expected sales start: 2023

Landås | Greater Oslo

• · ~ 650 units total
• · ~ 400 Pluss units
• · ~ 450 units remaining for sale

Lervig Brygge| Stavanger

• · ~ 800 units total
• · ~ 200 Pluss units
• · ~ 200 units remaining for sale

Ballerud | Greater Oslo

• · ~ 160 units
• · Expected sales start: 2023

Lørenvangen| Oslo

• · ~ 200 units
• · Expected sales start: 2024

Lilleaker | Oslo

• · ~ 150 units
• · ~ Expected sales start: 2024

Agenda

Highlights Operational update Financial update Market Outlook and summary

Outlook

• · Housing shortage in Oslo area provides favorable conditions for new housing
• · Expecting reduction in construction cost going forward
• · More than 400 units for sale and plans for additional sales starts
• · Well positioned for market recovery, with approximately 775 units ready for market in H1 2023

*At current interest rate level for an average income borrower.

• · Satisfactory sales in Q3 considering challenging market conditions
• · Solid Q3 results
• · Construction costs have peaked

Summary

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Estimated completions in Oslo and Akershus*

Sources: Historic data: Statistics Norway (SSB), Forecasted housing completions: Hawii Analyse, Forecasted housing need next 5 years: Prognosesenteret. Note: Number of persons per household in Oslo: 1.90.

Note: Housing need calculated on parameters such as number of persons per household, lag on housing development, housing demolition. Note: Completions exclusive of student- and senior housing.

* Akershus county = Viken county ex. Buskerud and Østfold.

** Estimates based on actual sales, future sales starts, and historical data.

37 *** Uncertainty due to project lead-time.

Costs and majority of sales value fixed pre-construction

Illustrative risk profile at construction start of a NOK 100 million project with a 12% margin

Limited equity risk

• Construction starts after minimum 60% pre-sale

• Remaining risk very limited

Costs and majority of sales value fixed pre-construction

Illustrative risk profile at construction start of a NOK 100 million project with a 20% margin

Limited equity risk

• Construction starts after minimum 60% pre-sale

• Remaining risk very limited.

Return on equity (IFRS)

^* Net income attributable to shareholders in Selvaag Bolig ASA.

12-month rolling net income (NOKm) ROE (%)

** Based on equity at the start of the period (attributed to shareholders in Selvaag Bolig ASA).

12-month rolling net income (NOKm) ROE (%)

Q1 2020 Net income excluding Other gains of NOK 1 029m Q1 2020 Net income including Other gains of NOK 1 029m

Earnings and dividend per share since IPO

^*Excluding earnings and dividend from UP transaction.

Accumulated dividend and earnings per share

**Including EPS of NOK 11.01 and DPS of NOK 22 from UP transaction.

Half year dividend and earnings per share

Revised dividend policy:

Selvaag Bolig's ambition is to pay high and stable dividends to its owners.

The company aims to pay dividends of minimum 60 per cent of net annual profit, paid in two instalments over the year. However, the size of the dividend will be weighed against the company's liquidity forecasts and capital adequacy.

Old dividend policy:

Selvaag Bolig's ambition is to pay high and stable dividends to its owners.

The company aims to pay dividends of minimum 40 per cent of net annual profit, paid in two instalments over the year. However, the size of the dividend will be weighed against the company's liquidity forecasts and capital adequacy.

The company will maintain an equity ratio of minimum 30 per cent.

Dividend policy

Share performance since IPO in June 2012

Source: Oslo Børs.

Share information

· Trading

^* All numbers in brackets from previous quarter.

Largest shareholders at 30.9, 2022

* Further information regarding shareholders is presented at: http://sboasa.no/en.

Shareholder	of # shares	% share
SELVAAG AS	50 180 087	53 .5%
Skandinaviska Enskilda Banken AB *	5 992 724	4% 6
PARETO INVEST NORGE AS	4 361 772	4 .7%
VERDIPAPIRFONDET ALFRED BERG GAMBA	3 266 051	.5% 3
The Northern Trust Comp, London * Br	2 186 000	2 3%
JPMorgan Chase Bank, N.A., London *	1 989 006	.1% 2
Skandinaviska Enskilda Banken * AB	000 000 1	1.1%
MUSTAD INDUSTRIER AS	950 707	1.0%
SANDEN EQUITY AS	909 594	1.0%
The Northern Trust Comp, London Br *	840 200	9% 0
State Street Bank and Comp * Trust	772 357	0 8%
BANAN II AS	750 000	8% 0
Landkreditt Utbytte	700 000	0 .7%
Brown Brothers Harriman Co * &	684 200	0 .7%
SELVAAG BOLIG ASA	552 630	0 6%
Brown Brothers Harriman Co * &	513 908	0 .5%
Stanley Co . International Morgan &	373 850	0 4%
HOLTA INVEST AS	354 900	0 4%
KBC Bank * NV	335 856	0 4%
Citibank, N.A. *	325 020	0 3%
Total 20 largest shareholders	038 862 77	82.2%
Other shareholders	16 726 826	17.8%
of Total number shares	93 765 688	100.0%

• · Nearly 60 000 homes over the last 70 years
• · Housing for all
• · Focus on fast growing urban regions
• · Large projects with more than 150 units

Addressing the long term housing need

Trondheim 278 units

Stockholm 820 units

Greater-Oslo

8 054 units

Positioned to realize large projects in Norway's four largest growing urban areas

• Acquire the right mix of zoned and unzoned land in suitable locations
• Land acquisitions in defined core areas
• High degree of site utilisation and strategic land development
• Substantial land bank to accommodate targets/growth in core areas
• Good infrastructure and public transport
• Joint ventures (JVs)

Land bank exposure

Trondheim 278 units

Geographical spread

Stockholm 820 units

8 054 units

Greater-Oslo Bergen 633 units

Stavanger 688 units

Land-bank strategy

Note: The numbers represent the size of the land portfolio at 30 September 2022. All numbers are adjusted for Selvaag Bolig's share in joint ventures. The total portfolio is ~10 500 units. Of these ~5 250 are options and obligations to buy.

47

Change in needs calls for new concepts

Selvaag Pluss

• Lifestyle concept
• Attractive common areas
• Professional hosting services
• Service offerings and good neighbourliness, make every day living easier
• Guestrooms for family and friends
• Work-out- and fitness centre

Selvaag City

• Urban lifestyle concept with compact apartments
• Attractive common areas
• Professional hosting services
• Guestrooms for family and friends
• Work-out- and fitness centre

• Service offerings and good neighbourliness, make every day living easier

Oslo second-hand market update

Source: Eiendomsverdi.

Bergen second-hand market update

Source: Eiendomsverdi.

Trondheim second-hand market update

Source: Eiendomsverdi.

Stavanger-area* second-hand market update

Source: Eiendomsverdi.

* Includes Stavanger, Sola, Sandnes, Randaberg.

Regional price* development - October 2022

Area	% chg -1M	% chg. -1M seasonal adj.	% chg YtD	% chg -12m	% chg -5Y	% chg -10Y	Average price/sqm (NOK)	Avefage price (NOK)
Oslo	-3.2%	-1.9%	2.9%	2.8%	29.4%	81.2%	86 256	6 160 824
Bergen	-0.4%	-0.1%	4.9%	2.8%	21.5%	46.9%	50 299	4 218 757
Trondheim	-1.2%	-0.5%	4.3%	2.0%	19.0%	46.8%	51 656	4 303 401
Stavanger-area**	-1.5%	0.0%	7.8%	5.5%	15.5%	4.4%	39 612	4 195 313
Norway	-1.9%	-0.8%	4.7%	2.8%	23.6%	58.2%	48 701	4 328 496

Source: Eiendom Norge.

* Nominal price change.

** Includes Stavanger, Sola, Sandnes, Randaberg.

0.9%

-1.1%

-2.4% -2.5%

-0.5%

Regional price* development October, 2012-22

** Includes Stavanger, Sola, Sandnes, Randaberg.

Land bank in Oslo and Greater Oslo at 30.9.22

*The numbers are adjusted for Selvaag Bolig's share in joint ventures

	Lørenskog	1 666 units
	Lørenskog Stasjonsby	613 units
	Skårer Bolig	415 units
	LSV	500 units
	Pallplassen	138 units
	Lillestrøm
1 666
units
	Bjerke	1 400 units
	Bjerke	1 400 units
	Oslo South	315 units
	Gjertsrud Stensrud	315 units
	Follo/Østfold	1 435 units
	Langhus	49 units
	Solberg	32 units
	Ski	88 units
	Grenseveien	340 units
	Fredrikstad	726 units
	Vestby	200 units

Land bank in Stavanger area at 30.9.22

*The numbers are adjusted for Selvaag Bolig's share in joint ventures

Land bank in Bergen, Trondheim and Stockholm at 30.9.22

*The numbers are adjusted for Selvaag Bolig's share in joint ventures.

Cooperation with Urban Property from 1.1.2021

• How it works:
• Urban Property has a right of first refusal (ROFR) to purchase all new land Selvaag Bolig wants to develop
• Urban Property acquires land on Selvaag Bolig recommendations
• Selvaag Bolig has an option to repurchase the land in stages

• Fee structure:

  • 2.5% transaction fee
  • Annual option premium of NIBOR +375bp

• Eliminates need for equity when purchasing land, as SBO pay 50% of purchasing price at construction start and 50%

• Benefits for Selvaag Bolig:

• at project completion
• Increases return on equity
• Allows for a higher dividend payout ratio

• land plots

• (break fee)

• More efficient and predictable funding of existing and new

• Increases competitiveness when making land purchases - Down-side risk for SBO limited to 48 months option premium

Selvaag Bolig sold most of its land bank to Urban Property in January 2020, entering a long-term and strategic partnership. Urban Property is a financially sound, well capitalized and predictable partner.

No equity investment in early phase through land bank cooperation with Urban Property

1) + 2.5% transaction fee and option price (Nibor + 375bps).

Business model securing healthy project margins

Delivery in accordance with expectations

Project margin 18%

Delivery to customers

	Acquire and refine land for development	Project design	Contracting, marketing and pre-sales	Construction and sales
Project margin 20%	· Buy (i) options on unzoned land or (ii) ready-to-build land · Opitmize project for zoning process	· Optimize project design - Net/gross-factor - Tailor to meet market demand price/quality · Plan and prepare for construction	· Pre-marketing · Competitive tender for construction · 60% pre-sale before construction start	· Fixed-price contracts · Prices on remaining 40% increased gradually · Construction financed with construction loans
15%
10%
5%
0%
	Land acquired with minimum 10% project margin 1) Assuming flat market development.	Adding value through building permits and area utilisation	Value added when achieving 60% pre-sale	Maximising price in accordance with market

Margin development through project stages¹

· Target 100% sale at delivery

Example project calculations before and after

Example apply a land ownership period in Urban Property of 3-4 years, and a finance cost of 4% on all capital employed in the project.

	PROJECT CALCULATIONS 1 BEFORE URBAN PROPERTY		PROJECT CALCULATIONS 2
				AFTER URBAN PROPERTY
Figures for illustration purposes only	MNOK	%	MNOK	%
Sales revenue	348.5	100.0%	348.5	100.0%
Construction cost	195.8	56.2%	195.8	56.2%
Land cost	69.7	20.0%	85.2	24.4%
Other costs	24.5	7.0%	24.5	7.0%
Project cost	290.0	83.2%	305.5	87.7%
Net finance (excluding Urban Property)	16.8	4.8%	5.3	1.5%
TOTAL REVENUE	348.5	100.0%	348.5	100.0%
TOTAL COST	306.8	88.0%	310.9	89.2%
PROFIT	41.7	12.0 %	37.7	10.8%
Internal rate of return (IRR)		12.2%		28.0%

2

• 1 Initial project margin and IRR before Urban Property when purchasing land at market value
• Initial project margin and IRR with Urban Property as partner when purchasing land at market value (including option premium)

In total marginal lower project margins, but significantly increased IRR and RoE

Project margin development

* Includes project revenues only.

** Project margins are exclusive of overhead costs. Construction costs are exclusive of financial expenses in the segment reporting (NGAAP).

NOK million

Substantial portfolio for development

Total land bank Options and obligations to acquire Land bank in balance sheet

Total land bank portfolio at 30.9.2022

Units

Valuation of remaining land bank*

(60 Grader Næringsmegling)

^* SBO land bank not included in the UP transaction

NOK million

Value of units sold - gross and net

Sales value of units sold

	1 401	1 401
				209
731			753
	1 265	394		554
		1 033
634			636
				439

Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Sales value of sold units (net) Sales value of sold units (gross)

NOK million

Number of units sold - gross and net

Number of units sold

Units

Income statement IFRS

(figures in NOK million)	Q3 2022	Q3 2021	9M 2022	9M 2021	2021
Total operating revenues	905.4	886.9	2 227.5	1 848.9	3 402.7
Project expenses	(742.1)	(698.5)	(1 799.3)	(1 404.5)	(2 617.4)
Other operating expenses	(52.9)	(53.8)	(156.4)	(158.4)	(236.4)
Associated companies and joint ventures	(2.2)	55.3	94.0	100.7	109.7
EBITDA	108.2	189.9	365.8	386.7	658.6
Depreciation and amortisation	(2.4)	(2.6)	(7.2)	(7.7)	(10.3)
Other gains (loss)	-	-	-	-	-
EBIT	105.8	187.3	358.6	379.0	648.3
Net financial expenses	1.6	(1.8)	(0.1)	(8.1)	(3.0)
Profit/(loss) before taxes	107.3	185.6	358.5	370.9	645.3
Income taxes	(28.3)	(32.2)	(65.1)	(84.4)	(140.4)
Net income	79.1	153.4	293.4	286.5	504.9

Balance sheet

(figures in NOK million)	Q3 2022	Q2 2022	2021
Intangible assets	383.4	383.4	383.4
equipment Property, plant and	8.0	8.1	7.4
in associated companies joint Investments and ventures	235.7	349.2	354.7
Other non-current assets	315.1	300.5	302.3
Total non-current assets	942.2	1 041.2	1 047.7
Inventories (property)	4 124.8	4 122.2	4 072.5
- Land	805.2	848.9	033.8 1
for - Land held sale
in - Work progress	3 189.5	3 153.8	2 872.2
- Finished goods	130.2	119.5	166.4
receivables Other current	249.7	115.3	134.3
Cash and cash equivalents	774.8	709.5	527.4
Total current assets	5 149.4	4 947.0	4 734.2
TOTAL ASSETS	6 091.6	5 988.1	5 782.0
Equity attributed to shareholders in Selvaag Bolig ASA*	2 279.1	2 387.2	2 461.1
Non-controlling interests	7.8	7.8	7.8
Total equity	2 286.9	2 395.0	2 468.8
Non-current interest-bearing liabilities	477.2 1	239.8 1	777.2
Other non-current non interest-bearing liabilities	401.6	376.6	341.0
Total liabilities non-current	878.8 1	616.4 1	118.2 1
interest-bearing liabilities Current	1 090.0	1 299.0	1 370.5
non interest-bearing liabilities Other current	835.9	677.7	824.4
Total liabilities current	925.9 1	976.8 1	2 194.9
TOTAL EQUITY AND LIABILITIES	6 091.6	5 988.1	5 782.0

Cash flow statement

(figures in NOK million)	Q3 2022	Q3 2021	9M 2022	9M 2021	2021
Net cash flow from operating activities	126.1	174.5	115.0	(328.6)	392.6
cash flow from investment activities Net	119.2	133.4	250.4	169.1	167.1
Net cash flow from financing activities	(180.0)	(278.3)	(118.1)	(116.2)	(917.6)
in equivalents Net change cash and cash	65.3	29.5	247.4	(275.7)	(357.9)
equivalents of period Cash and cash at start	709.5	580.2	527.4	885.3	885.3
equivalents of period Cash and cash at end	774.8	609.7	774.8	609.7	527.4

Operational highlights – key operating figures

	Q3 21	Q4 21	Q1 22	Q2 22	Q3 22
Units sold	125	276	201	120	83
Construction starts	148	456	113	190	68
Units completed	318	334	74	210	142
Units delivered	314	324	77	217	144
Units under construction	201 1	323 1	361 1	342 1	268 1
Proportion of sold units under construction	76 %	67 %	73 %	% 75	73 %
units Completed unsold	16	25	19	13	19
of units construction (NOK million) Sales value under	6 200	6 736	7 034	6 807	6 225

EBITDA Q3 2022

Note: EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies.

	Property
(figures in million) NOK	development	Other	Total
Operating revenues	774.8	13.4	788.1
Project expenses	(636.5)	(0.2)	(636.7)
Other operating expenses	(4.9)	(50.4)	(55.3)
EBITDA (percentage of completion)	133.4	(37.2)	96.1
Construction are exclusive of financial expenses in the reporting. Note: costs segment
IFRS for the EBITDA quarter, per segment
Operating revenues	892.0	13.4	905.4
Project expenses	(741.8)	(0.2)	(742.1)
Other operating expenses	(4.9)	(48.0)	(52.9)
of income (losses) from associated companies Share
and joint ventures Other gain (loss), net	(2.2) -	-	(2.2)
EBITDA	143.1	(34.9)	108.2
Units in production	1 268	N/A	N/A
Units delivered	144	N/A	N/A

EBITDA 9M 2022

Note: EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies.

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	2 287.6	42.8	2 330.4
Project expenses	(1 860.3)	(0.6)	(1 860.9)
operating Other expenses	(21.5)	(141.9)	(163.5)
(percentage of completion) EBITDA	405.8	(99.7)	306.0
Construction are exclusive of financial expenses in reporting. Note: costs the segment
IFRS EBITDA full year per segment
Operating revenues	2 184.7	42.8	2 227.5
Project expenses	(1 798.7)	(0.6)	(1 799.3)
Other operating expenses	(21.5)	(134.9)	(156.4)
Share of income (losses) from associated companies
and joint ventures	94.0	-	94.0
EBITDA	458.5	(92.7)	365.8
Units in production	1 268	N/A	N/A
Units delivered	438	N/A	N/A

Norwegian housing market

· Low risk for housebuilders

• · Advance sales: banks require that 50-70% of homes are sold before construction starts
• · Binding offers: offer to purchase is a binding sales contract, and requires a minimum 10% cash deposit
• · High level of home ownership
• · 85% (one of the world's highest)
• · Economic benefits for home owners
• · 23% of mortgage loan interest payments are tax deductible
• · Transfer stamp duty for new houses is lower than for second-hand homes
• · Strong population growth
• · Norway's urban areas are among the fastest growing in Europe
• · Good market for new homes

Source: Selvaag Bolig and Eurostat.

Total household debt and homeownership

Household debt in % of net disposable income (2021) Homeownership rate (2020)

Source: OECD, Statista.

Shift in demographics trigger new housing needs

Source: Statistics Norway, Samfunnsøkonomisk Analyse.

* Estimated annual growth for the 2020-25 period.

** Number of persons per household in Norway.

Share of small & single households Share of newbuild and population growth by region

Price development Norway and selected regions (2005-22)

Price development (rebased 1.1.2005)

Source: Eiendomsverdi.

* Stavanger area includes: Randaberg, Sandnes, Sola, Stavanger.

Population growth in Oslo and Akershus remains high

Share of total population in Oslo and Akershus Share of total population growth in Oslo and Akershus

Source: Statistics Norway.

Homeownership rate among immigrants in Norway (per year living in Norway)

Immigration increases demand over time

of years in Norway

Source: Statistics Norway.

Norway – relatively limited volatility

Population growth 2021 - 2030e and 2040e Interest rates* 2018 - 2023e

Source: Bloomberg, UN.

* Central bank rates.

79

Healthy macroeconomics

Wages & disposable income 2019 – 2025e Prices & interest rates 2019 – 2025e

Source: Monetary Policy Report 2|22, Central Bank of Norway.