Selvaag Bolig ASA

Remuneration Information • Apr 5, 2022

REMUNERATION REPORT FOR 2021

The purpose of this report is to provide a comprehensive, clear and understandable overview of gross pay and remuneration awarded and due to leading employees for the past financial year, how this remuneration accords with the guidelines adopted by the 2021 annual general meeting (AGM), and extent to which this remuneration is aligned with the performance of the company. The report provides details, both in total and individualised, on the remuneration of the company's leading employees as well as the remuneration received by the company's directors in their capacity as members of the company's board of directors.

The report comprises remuneration for the company's executive management, as well as for directors who are or have been employed by, or held office in, the company for the 2021 financial year. The report has been prepared by the board of directors of Selvaag Bolig ASA in accordance with section 6-16 b of the Norwegian Public Limited Liability Act 1997, section 6 of the Norwegian regulations on guidelines for and reporting on remuneration of leading employees 2020, and section 7-31b of the Norwegian Accounting Act.

Company highlights

Selvaag Bolig ASA is a residential property developer which controls the entire value chain from the acquisition of land to the 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.

The level of activity in the company was high during 2021, with good sales and strong financial results. Homes sold had a combined value of approximately NOK 4 billion. Homes delivered had a combined value of NOK 3.2 billion. At 31 December, 1 323 homes with a combined sales value of NOK 6.7 billion were under construction. The company is also well positioned, with a number of large development projects and land available which could yield some 11 000 homes in and around Greater Oslo, Stavanger, Bergen, Trondheim and Stockholm.

A summary of the company's consolidated key figures for 2017-2021 is provided below.

KEY FIGURES

PROFIT/(LOSS) BEFORE TAXES IFRS

(NOK MILLION)

* Not including NOK1045 million from UP transaction

UNITS UNDER CONSTRUCION AT YEAR END

For further details of the company's performance in 2021, see the company's consolidated annual accounts for 2021 as published in the annual report on the company's website.

REMUNERATION FOR LEADING EMPLOYEES IN THE COMPANY

Principles

Leading employees of Selvaag Bolig are remunerated in accordance with the principle "competitive but not market-leading". The company seeks to offer a total remuneration which is competitive, flexible and motivational both in the short and long term.

The auditor's report on the company's compliance with the guidelines is available on the company's website. The remuneration guidelines adopted by the 2021 AGM have been implemented in full.

Composition

The remuneration comprises fixed base pay, short term bonuses, share incentives, a pension scheme and other benefits. Specific ceilings are set for the various variables.

Fixed remuneration

Fixed pay was the main element in the remuneration for leading employees in 2021. Table 1 below shows fixed gross pay. Fixed pay is reviewed annually and determined based on pay trends in general and in the property sector in particular.

Variable remuneration

Performance measures for each leading employee's variable remuneration in 2021 have been selected to promote the company's strategy and to encourage behaviour which is in the long-term interest of the company. Variable remuneration is related to value creation for shareholders over time and structured to create an ownership culture which ensures interest alignment between shareholders and leading employees.

Bonus scheme

Selvaag Bolig has established a bonus scheme for leading employees. The board established scorecards for the CEO and executive management for 2021. The vesting period is annual, and the the KPIs in the scorecard comprise both financial and non-financial KPIs weighed at 40-60 per cent each. Examples of financial performance criteria are profitability, return on equity and total shareholder return. Examples of non-financial criteria are customer satisfaction, organisational development and ESG. It is the

company's opinion that all the KPIs are suited to building long-term shareholder value as well as ensuring continuous improvement of the company's operations.

Share purchase programme

Selvaag Bolig has established a share purchase programme where leading employees can opt to buy shares in the company at a discounted rate of 30 per cent for an amount up to the individual's annual pay. The lock-up period is three years and compensation is provided for the tax disadvantage of this discount to the employee. The programme is described in the company's annual report.

In 2021, leading employees in the company's executive management bought a total of 360 683 shares and now collectively hold 1 123 628 shares. Ownership is intended to create added value for the company through increased engagement and loyalty.

Pension schemes, insurance, benefits in kind and extraordinary remuneration

In 2021, the company incurred costs relating to pension schemes, AFP, insurance, benefits in kind and extraordinary remuneration to leading employees. These were paid in accordance with the company's guidelines on remuneration. The basis for earned pension rights under the defined contribution plan is 4.5 per cent of pay between one and 7.1 times the National Insurance base amount (G) and 10 per cent between 7.1 and 12G. The company may sign other early retirement pension agreements for leading employees, but no such agreements have been entered into.

	Table 1: Total remuneration, broken down by component, paid and due to each current or former leading employee in the
	company for the past financial year. Figures in NOK 1 000.

Name of Leading Employee Position	Reported financial year	Base pay	Other benefits	One-year variable	Share based remuneration	Pension	Total remuneration		Proportion of fixed and variable remuneration
Sverre Molvik1)	2021	3 691	129	3 456	992	93	8 361	47%	53%
CEO	2020	3 543	22	3 312	810	91	7 778	47%	53%
Christopher Brunvoll2)	2021	1 574	12	1 967	549	78	4 180	40%	60%
CFO	2020	-	-	-	-	-	-	N/A	N/A
Øystein Klungland	2021	3 691	153	3 456	992	93	8 385	47%	53%
COO	2020	3 543	22	3 312	810	91	7 778	47%	53%
Kristoffer Gregersen	2021	1 617	14	1 615	448	93	3 787	46%	54%
EVP communications and sustainability	2020	1 550	11	1 421	342	91	3 415	48%	52%
Petter Cedell	2021	2 081	12	1 248	258	93	3 692	59%	41%
EVP property investment	2020	2 036	11	1 663	218	91	4 019	53%	47%
Line Lian Mjell3)	2021	616	6	613	162	39	1 436	46%	54%
EVP market	2020	-	-	-	-	-	-	N/A	N/A
Halvard Kverne4)	2021	-	-	-	-	-	-	N/A	N/A
EVP regions	2020	2 599	11	2 037	-	91	4 738	57%	43%
Rolf Thorsen1)	2021	-	-	-	-	-	-	N/A	N/A
CEO	2020	3 321	223	5 760	-	91	9 395	39%	61%

1) Rolf Thorsen resigned as CEO in October 2020. Severance pay is included in the remuneration for 2020.

2) Christopher Brunvoll was appointed CFO in March 2021. 3) Line Lian Mjell was employed by Selvaag Bolig ASA in august 2021. 4) Halvard Kverne stepped down from the executive management in october 2020.

Table 2: Number of shares acquired by each leading employee in accordance with the share purchase programme from 2019 to 2021 and the total number of shares they owned at 31 December.

Name of Leading Employee Position	Reported financial year	Shares held at the beginning of the year	Shares acquired	Price paid per share1)	Acquisition date	Shares sold	Total number of shares held at 31 December	Total number of shares with lockup at 31 December
	2021	377 937	104 131	50,76	02.12.2021	82 167	399 901	283 823
Sverre Molvik CEO	2020	434 621	101 297	50,77	03.12.2020	157 981	377 937	272 864
	2019	356 226	78 395	63,16	10.12.2019	-	434 621	360 886
	2021	377 937	104 131	50,76	02.12.2021	105 073	376 995	283 823
Øystein Klungland COO	2020	362 672	101 297	50,77	03.12.2020	86 032	377 937	272 864
	2019	352 116	78 395	63,16	10.12.2019	67 839	362 672	360 886
	2021	8 882	58 257	50,76	02.12.2021	-	67 139	63 181
Christopher Brunvoll CFO	2020	-	-	-	-	-	-	-
	2019	-	-	-	-	-	-	-
Kristoffer Gregersen	2021	176 840	47 844	50,76	02.12.2021	61 293	163 391	125 624
EVP communications and	2020	182 710	43 445	50,77	03.12.2020	49 315	176 840	115 547
sustainability	2019	169 445	34 335	63,16	10.12.2019	21 070	182 710	182 710
	2021	84 297	28 144	50,76	02.12.2021	14 415	98 026	78 900
Petter Cedell EVP property investment	2020	72 246	28 138	50,77	03.12.2020	16 087	84 297	65 863
	2019	49 628	22 618	63,16	10.12.2019	-	72 246	64 378
	2021	-	18 176	50,76	02.12.2021	-	18 176	18 176
Line Lian Mjell EVP market	2020	-	-	-	-	-	-	-
	2019	-	-	-	-	-	-	-

1) Price before 30% discount.

Table 3: Performance of leading employees in the reported financial year.

	KPIs for incentive programme 2021	Overall target performance2)
KPI	Description of KPI		Sverre Molvik	Other members of executive management1)
Financial	Financial results Return on Equity Total shareholder return	50 %		60 - 95 %
Non-financial	Customer satisfaction Aquisition & construction Organization & Sustainability	50 %	88 %

1) Perfomance range for executive management.

2) The CEO and COO were awarded a discretionary bonus of NOK 200 000 for 2021.

This is additional to the perfomance shown in the table.

REMUNERATION REPORT 2021

Table 4: Change in remuneration to leading employees and company performance over the last five reported financial years. Figures in NOK 1 000.

Year reported	2017	2018	2019	2020	2021
Annual change	(2017 vs 2016)	(2018 vs 2017)	(2019 vs 2018)	(2020 vs 2019)	(2021 vs 2020)
Leading Employee's remuneration
Sverre Molvik, CEO1)	6 013	7 182	8 550	7 778	8 361
	63% 6 010	19% 7 080	19% 8 548	-9% 7 778	7% 8 385
Øystein Klungland, COO	64%	18%	21%	-9%	8%
Kristoffer Gregersen, EVP	3 537	3 820	4 086	3 415	3 787
communications and sustainability	75%	8%	7%	-16%	11%
	-	-	-	-	4 180
Christopher Brunvoll, CFO2)	N/A	N/A	N/A	N/A	N/A
Petter Cedell, EVP property investment	3 652	4 094	4 960	4 019	3 692
	21%	12%	21%	-19%	-8%
Line Lian Mjell, EVP market4)	-	-	-	-	1 436
	N/A	N/A	N/A	N/A	N/A
Halvard Kverne, EVP regions4)	6 076	6 472	6 488	4 738	-
	66%	7%	0%	-27%	N/A
Rolf Thorsen, CEO1)	-	-	7 895	9 395	-
	N/A	N/A	N/A	19%	N/A
Olav Hindahl Selvaag, CEO5)	-	1 928	1 751	-	-
	N/A	N/A	-9%	N/A	N/A
Baard Schumann, CEO5)	17 166 118%	19 456 13%	- N/A	- N/A	- N/A
Company's performance
	401 045	566 939	654 515	494 955	504 909
Net profit IFRS7)	33%	41%	15%	-24%	2%
Net profit NGAAP7)	541 857	445 970	632 583	579 299	453 606
	33%	-18%	42%	-8%	-22%
Total shareholder return8)	-9%	31%	89%	17%	-3%
Return on equity 6)	15%	20%	21%	15%	21%
Average remuneration of employees on a full-time equivalent basis
Number of employees 9)	91	90	90	82	80
Average pay per employee 10)	982 1%	1 019 4%	1 190 17%	1 273 7%	1 291 1%

1) Rolf Thorsen resigned as CEO of Selvaag Bolig ASA in october 2020. Severance pay is included in the remuneration for 2020.

Sverre Molvik was appointed new CEO from the position of CFO which he continued to hold until March 2021.

2) Christopher Brunvoll was appointed CFO of Selvaag Bolig ASA in March 2021.

3) Line Lian Mjell was employed by Selvaag Bolig ASA in August 2021.

4) Halvard Kverne stepped down from the executive management in Selvaag Bolig ASA in october 2020.

5) Baard Shumann resigned as CEO in June 2018. Severance pay is included in the remuneration for 2018.

Olav Hindahl Selvaag held the position of interim CEO until Rolf Thorsen was appointed new CEO in May 2019.

6) Return on Equity is calculated by dividing fiscal year net profit by total equity from previous fiscal year.

7) Net profit attributable to shareholders in Selvaag Bolig ASA. Year 2020 excluding gain of NOK 1 029 from UP transaction.

8) Shareholder return = share price development year over year including paid dividend.

9) Number of paid employees, excluding executive management.

10) Averge pay is including fixed and variable remuneration on a full-time equivalent basis.

For more information on remuneration to leading employees in the company, see the annual report and the company's guidelines on remuneration on the company's website.

REMUNERATION OF THE BOARD OF DIRECTORS

The following describes the remuneration received by directors of Selvaag Bolig ASA in their capacity as directors of the company alone.

Pursuant to the company's articles of association, proposals for the remuneration of the board of directors are prepared by the company's nomination committee. Remuneration of

the company's directors is then approved by a resolution of the company's general meeting.

The company's directors are not included in any variable remuneration, pension scheme or share-based remuneration programmes. Employee-elected directors may be eligible to participate in such programmes in their capacity as employees.

Table 5: Remuneration of the board of directors. Figures in NOK 1 000.

Name of board member	Position	Type of remuneration	2021	2020
		Regular director remuneration	500	490
Olav Hindahl Selvaag	Chair	Remuneration as chair of the remuneration committee	65	65
		Regular director remuneration	340	330
Gisele Marchand	Director	Remuneration as member of the remuneration committee	50	50
		Remuneration as chair of the audit committee	100	100
		Regular director remuneration	340	330
Tore Myrvold	Director	Remuneration as member of the audit committee	75	75
		Regular director remuneration	340	-
Øystein Thorup1)	Director Remuneration as member of the remuneration committee		50	-
Camilla Wahl2)	Director	Regular director remuneration	340	-
		Regular director remuneration	-	330
Peter Groth1)	Director	Remuneration as member of the remuneration committee	-	50
Sissel Kristensen	Director (elected by the employees)	Regular director remuneration	39	37
Magnus Klund Kristiansen4)	Director(elected by the employees)	Regular director remuneration	39	7
Rune Magnus Thomassen4)	Director(elected by the employees)	Regular director remuneration	-	30
Christopher Brunvoll3)	Director(elected by the employees)	Regular director remuneration	-	8
Anne Sofie Bjørkholt2)	Director	Regular director remuneration	-	280

1) Peter Groth was replaced by Øystein Thorup in April 2020.

2) Anne Sofie Bjørkholt was replaced by Camilla Wahl as a director in April 2020.

3) Christopher Brunvoll stepped down as a director in February 2020.

4) Magnus Klund Kristiansen replaced Rune Thomassen as a director in March 2020. Patrik Eriksson replaced Magnus Klund Kristiansen as diretor in April 2021.

Table 6: Number of shares held by the bord of directors at year end.

Navn på styremedlem	Position	31.12.2020	Kjøp	Salg	31.12.2021
Olav Hindahl Selvaag1)	Chair	50 288 661	100	-	50 288 761
Gisele Marchand	Director	5 000	450	-	5 450
Tore Myrvold2)	Director	13 000	-	-	13 000
Camilla Wahl	Director	-	-	-	-
Øystein Thorup	Director	-	1 700	-	1 700
Sissel Kristensen	Director (elected by the employees)	3 958	-	-	3 958
Patrik Eriksson	Director (elected by the employees)	4 000	-	3 000	1 000

1) Includes shares owned by Selvaag AS and other related parties.

2) Includes shares owned by related parties.

Year reported		2017	2018	2019	2020	2021
Annual change		2017 vs 2016	2018 vs 2017	2019 vs 2018	2020 vs 2019	2021 vs 2020
Director's remuneration	Position
Olav Hindahl Selvaag7)	Chair	525	545	-	555	565
		2%	4%	N/A	N/A	2%
Gisele Marchand8)	Director	365	375	745	480	490
		1%	3%	99%	-36%	2%
Tore Myrvold6)	Director	-	-	400	405	415
		N/A	N/A	N/A	1%	2%
Øystein Thorup1)	Director	-	-	-	-	390
		N/A	N/A	N/A	N/A	N/A
Camilla Wahl2)	Director	-	-	-	-	340
		N/A	N/A	N/A	N/A	N/A
Peter Groth1)	Director	315	325	375	380	-
		2%	3%	15%	1%	N/A
Anne Sofie Bjørkholt2)	Director	265	275	275	280	-
		2%	4%	0%	2%	N/A
Karsten Bomann Jonsen6)	Director	340	350	-	-	-
		1%	3%	N/A	N/A	N/A
Sissel Kristensen5)	Director (elected by the employees)	-	35	36	37	39
		N/A	N/A	3%	3%	5%
Magnus Klund Kristiansen4)	Director (elected by the employees)	-	-	-	7	39
		N/A	N/A	N/A	N/A	457%
Rune Magnus Thomassen4)	Director (elected by the employees)	21	12	-	30	-
		N/A	-43%	N/A	N/A	N/A
Christopher Brunvoll3)	Director (elected by the employees)	11	23	36	8	-
		-65%	109%	57%	-78%	N/A
Marianne Ørnsrud5)	Director (elected by the employees)	32	-	-	-	-
		3%	N/A	N/A	N/A	N/A

Table 7: Change in remuneration to the board of directors over the last five reported financial years. Figures in NOK 1 000.

1) Peter Groth was replaced by Øystein Thorup in April 2020.

2) Anne Sofie Bjørkholt was replaced by Camilla Wahl as a director in April 2020.

3) Christopher Brunvoll stepped down as a director in April 2016 and February 2020. He replaced Rune Thomassen in April 2017.

4) Magnus Klund Kristiansen replaced Rune Thomassen as a director in March 2020.

5) Sissel Kristensen replaced Marianne Ørnsrud in April 2017.

6) Tore Myrvold replaced Karsten Bomann Jonsen in May 2018.

7) Olav Selvaag stepped down as chair of the board from June 2018 to May 2019.

8) Gisele Marchand was elected chair of the board from June 2018 to May 2019.

STATEMENT BY THE BOARD OF DIRECTORS

The board of directors has considered and approved the remuneration report for 2021 for Selvaag Bolig ASA.

The remuneration report is presented in accordance with section 6-16b of the Norwegian Public Limited Liability Act 1997, section 6 of the Norwegian regulations on guidelines for and reporting on remuneration of leading employees 2020, and section 7-31b of the Norwegian Accounting Act.

In the board's opinion, the remuneration report complies with the company's remuneration policy as adopted by the 2021 AGM and is free of material misstatements, whether owing to fraud or error.

Approval of the remuneration report will be put to an indicative vote at the AGM.

Oslo, 21. March 2022

Patrik Eriksson Director (employee-elected)

Olav Hindahl Selvaag Chair

Camilla Wahl Director

Gisele Marchand Director

Tore Myrvold Director

Øystein Thorup Director

Sissel Kristensen Director (employee-elected)

To the General Meeting of Selvaag Bolig ASA

Independent auditor's assurance report on report on salary and other remuneration to directors

Opinion

We have performed an assurance engagement to obtain reasonable assurance that Selvaag Bolig ASA report on salary and other remuneration to directors (the remuneration report) for the financial year ended 31 December 2021 has been prepared in accordance with section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation.

In our opinion, the remuneration report has been prepared, in all material respects, in accordance with section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation.

Board of directors' responsibilities

The board of directors is responsible for the preparation of the remuneration report and that it contains the information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation and for such internal control as the board of directors determines is necessary for the preparation of a remuneration report that is free from material misstatements, whether due to fraud or error.

Our independence and quality control

We are independent of the company as required by laws and regulations and the International Ethics Standards Board for Accountants' Code of International Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. Our firm applies International Standard on Quality Control 1 (ISQC 1) and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Auditor's responsibilities

Our responsibility is to express an opinion on whether the remuneration report contains the information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation and that the information in the remuneration report is free from material misstatements. We conducted our work in accordance with the International Standard for Assurance Engagements (ISAE) 3000 – "Assurance engagements other than audits or reviews of historical financial information".

We obtained an understanding of the remuneration policy approved by the general meeting. Our procedures included obtaining an understanding of the internal control relevant to the preparation of the remuneration report in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. Further we performed procedures to ensure completeness and accuracy of the information provided in

PricewaterhouseCoopers AS, Dronning Eufemias gate 71, Postboks 748 Sentrum, NO-0106 Oslo T: 02316, org. no.: 987 009 713 MVA, www.pwc.no Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap

the remuneration report, including whether it contains the information required by the law and accompanying regulation. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Oslo, 21 March 2022 PricewaterhouseCoopers AS

Petter Walstad State Authorised Public Accountant

Note: This translation from Norwegian has been prepared for information purposes only.