Selvaag Bolig ASA

Earnings Release • May 25, 2022

Selvaag Bolig ASA: High level of activity and increased order backlog

Selvaag Bolig ASA: High level of activity and increased order backlog

Selvaag Bolig delivered 77 homes in the first quarter, when the EBITDA margin

adjusted for financial costs came to 17 per cent. At 31 March, the company had

1 361 homes worth NOK 7 034 million under construction.

We sold homes for more than NOK 1 billion in the first quarter, and for the

first time in two years we have homes adding up to more than NOK 7 billion

under construction. The sales-ratio at 31 March was 73 per cent, says CEO

Sverre Molvik.

Construction costs for these units have been secured at a fixed rate and are

therefore not affected by the increase in such expenses. We are carrying out

projects as planned and have good control over costs.

Even with rising interest rates and increased construction costs for new

projects, the company expects a good and stable housing market in the time to

come.

We are managing to secure construction costs at sustainable prices and the

supply side of the housing market in the Oslo-region low by historical

standards. We have some 400 units on sale and are planning sales starts for an

additional 500 homes in the second and third quarters .

The live webcast of the presentation can be viewed from 0830 here.

(https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220525_3) An

English transcript of the presentation will be made available on the company s

website.

Highlights of the first quarter 2022 (first quarter 2021)

* Net construction under way on 1 361 homes (1 349) with a combined sales

value of NOK 7 034 million (NOK 6 627 million)

* 73 per cent (82 per cent) of homes under construction sold at 31 March

* 89 per cent of homes due for completion in 2022 are sold

* Pre-tax profit NOK 47 million (NOK 111 million)

* IFRS**: Operating revenues of NOK 356 million (NOK 568 million), EBITDA

adjusted for financial expenses NOK 61 million (NOK 129 million),

corresponding to a margin of 17 per cent (23 per cent)

* Earnings per share: NOK 0.40 (NOK 0.82)

* NGAAP***: Operating revenues of NOK 758 million (NOK 858 million), EBITDA of

NOK 106 million (NOK 147 million), corresponding to a margin of 14 per cent

(17.2 per cent)

* Net construction starts for 113 homes (134), net completions of 74 (95) and

net deliveries of 77 to buyers (124)

* Gross sales* amounted to 271 homes (274) with a sales value of NOK 1 401

million (NOK 1 431 million)

* Net sales were 201 homes (248) with a sales value of NOK 1 033 million

(NOK 1 242 million)

* 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. Net sales include Selvaag Bolig s share of

joint venture projects. Gross sales include all homes in joint venture

projects.

** Pursuant to the IFRS, all profit is recognised when the homes are delivered

to the buyer. Profit pursuant to the IFRS accordingly derives primarily from

homes which began to be built roughly two years ago.

*** The accounts pursuant to Norwegian generally accepted accounting

principles (NGAAP) utilise the percentage of completion method. This means

that profits are recognised on the basis of construction progress and sales in

the projects. That presents ongoing value creation in the company.

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About Us

Selvaag Bolig ASA is a residential property developer controlling the entire

value chain from acquisition of land to sale of homes. The company has several

thousand homes under development at any given time, and focuses on the growth

areas in and around Greater Oslo, Bergen, Stavanger, Trondheim and Stockholm.

Selvaag Bolig represents a continuation of Selvaag's 70-year history and

experience, and offers a broad variety of property types. The company is

headquartered at Ullern in Oslo.

www.selvaagboligasa.no/en (http://www.selvaagboligasa.no/en)

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This release was distributed by Kristoffer Gregersen, EVP communications and

sustainability, Selvaag Bolig ASA.

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For further information:

Sverre Molvik, CEO

Telephone: +47 40 10 05 85, e-mail: smo@selvaagbolig.no

(mailto:smo@selvaagbolig.no)

Christopher Brunvoll, CFO

Telephone: +47 98 82 92 22, e-mail: chbr@selvaagbolig.no

(mailto:chrb@selvaagbolig.no)

Kristoffer Gregersen, EVP communications, sustainability and corporate

strategy,

Telephone: +47 95 77 55 93, e-mail: kgr@selvaagbolig.no

(mailto:kgr@selvaagbolig.no)

This information is subject to disclosure under the Norwegian Securities

Trading Act, §5-12. The information was submitted for publication at

2022-05-25 07:00 CEST.

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Attachments

Report for 1st quarter 2022

(https://storage.mfn.se/be49d51b-8f67-414c-9650-5913fd232736/report-for-1st-quarter-2022.pdf)