Selvaag Bolig ASA

Quarterly Report • Nov 11, 2021

Oslo, 11 November 2021

Sverre Molvik, CEO Christopher Brunvoll, CFO

Q3 2021

2

Agenda

Highlights

Operational update

Financial update Market

Outlook and summary

Highlights Q3

• · Solid revenues and high margins
• · Units sold first 9 months up 13% year over year
• · Solid pipeline for coming quarters

Key financials Q3 2021

887
Operating revenues NOK million
774
Operating revenues (NGAAP) NOK million

EBITDA** margin (NGAAP) Per cent

25.0

Adjusted EBITDA* margin Per cent

* 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

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.

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

Units

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

334

• · 76% of units under construction sold by Q3 2021
• · 85% of construction volume in Greater Oslo Area* in Q3 2021

· Expected completions for the full year 2021: 867 units

• · 94% of 2021 completions sold by Q3 2021
• · Expected completions for the full year 2022: 625 units

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 2021 (IFRS)

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

Q3 2021 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 2021 (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 2021

NOK million

Note: Amounts < NOK -75m < NOK 75m are excluded from the cash flow overview.

• · Cash flow from operations positive at NOK 174m driven by strong earnings
• · Cash flow from investing activities positive at NOK 133m due to dividends from associated companies and JVs
• · Cash flow from financing activities negative at NOK 278m mainly due to net debt reductions and dividend payments of NOK 187m

187

Dividends paid to equity holders of Selvaag Bolig ASA

Cash and cash equivalents at 30 September 2021

Balance sheet highlights Q3 2021

Balance sheet composition

Assets Equity and Liabilities

0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 Cash Non-current assets · Book value of equity NOK 23.8 per share - Equity ratio 34.9% - Equity reduction as dividend payout > EPS · Changes from Q2 2021: - Inventories stable, down NOK 34m - Trade and Other receivables increased NOK 75m - Cash increased by NOK 30m · Prepayments from customers represent NOK 299m of other current non-interestbearing liabilities NOK million

Inventories (property) Q3 2021

Q3 21 vs Q2 21 Inventory value development

• Mainly due to construction starts
• · Work in progress up NOK 41m
• Mainly due to construction starts
• · Finished goods up NOK 7m

NOK million

Debt structure

Drawn at 30.9.21 (NOKm) Interest rate margin* 1 956 1.75% - 2.60% 2 Land loans Urban Property** 733 3.75%*** 250 2.00% - 2.50% 0 2.90% - 3.40% 0 2.10% 0 2.70%

Total Q3 2021 net interest-bearing debt NOK 2 329 million

Total Q2 2021 net interest-bearing debt NOK 2 421 million

Interest-bearing debt at 30.9.21

NOK million

* Margin added to 3m NIBOR.

** Repurchase agreements portfolio B.

*** + 2.00% fee at property repurchase.

* Repurchase agreements portfolio B.

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).

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 – Econ Nye Boliger, Forecasted housing need: Prognosesenteret. Note: Number of persons per household in Oslo: 1.90.

Note: Housing demand 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 start and time of construction.

** Uncertainty due to project lead-time. Expected to increase as new projects are construction started through 2022.

Estimated completions in Akershus*

Sources: Historic data: Statistics Norway (SSB), Forecasted housing completions: SA – Econ Nye Boliger, Forecasted housing need: Prognosesenteret. Note: Number of persons per household in Oslo: 1.90.

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

* Includes municipalities previously included in Akershus county.

** Estimates based on actual start and time of construction.

21 *** Uncertainty due to project lead-time. Expected to increase as new projects are construction started through 2022.

Newbuild market update

Source: SA - ECON Nye Boliger.

* Adjusted for temporary withdrawals or cancellations during the period.

Newbuild market update

* Adjusted for temporary withdrawals or cancellations during the period.

Source: SA - ECON Nye Boliger.

Regional Newbuild availability at 31.10.21

11	931
dheim	Stavanger & Sandnes
000	225 000
.5	4.1

Source: SA - ECON Nye Boliger, Statistics Norway.

* Includes municipalities previously included in Akershus county.

615

Regional Second-hand inventory at 31.10.21

Source: SA - ECON Nye Boliger, Statistics Norway.

* Includes municipalities previously included in Akershus county.

** Includes Stavanger, Sola, Sandnes, Randaberg.

Oslo second-hand market update

Source: Eiendomsverdi.

Akershus* second-hand market update

Source: Eiendomsverdi.

* Includes municipalities previously included in Akershus county.

Trondheim

Stavanger area**

• YTD increase of 10.6% = NOK 5 165 per sqm***

• Average price per sqm at 31.10 = NOK 52 050

• YTD increase of 8.9% = NOK 3 315 per sqm*** • Average price per sqm at 31.10 = NOK 38 932

Regional price* development 1.1-31.10, 2012-21

Source: Eiendom Norge.

• * Nominal price change.
• ** Includes Stavanger, Sola, Sandnes, Randaberg.

• 28 *** Based on average price per sqm per 31 December 2020.

• YTD increase of 2.4% = NOK 1 950 per sqm***

• Average price per sqm at 31.10 = NOK 84 108

Strong pipeline

RingvePluss | Trondheim

• · ~ 650 units total
• · ~ 600 units remaining for sale

Lille Løren Park | Oslo

• · ~ 348 units total (50/50 JV)

• · Expected sales start: Q1 2022

• · ~ 2 000 units total

• · ~ 900 units remaining for sale
• On 1 November, SBO had approximately 450 units for sale in Norway
• Planning for sale start of 220 units in Q4 2021 and 300 units in Q1 2022

Lørenskog stasjonsby | Greater Oslo

Skårerbyen | Greater Oslo

• · ~ 1 100 units total
• · ~ 700 units remaining for sale

Significant upcoming projects

Fornebu | Greater Oslo

• · ~ 2 000 units total (50/50 JV)
• · ~ 500 Pluss units
• · Expected sales start: 2024

Bjerke | Oslo

• · ~ 1 200 units total
• · ~ 300 Pluss units
• · Expected sales start: 2024

Fredrikstad | Greater Oslo

• · ~ 2 000 units (50/50 JV)
• · ~ 400 Pluss units
• · Expected sales start: 2022/23

Barkarby | Stockholm

• · ~ 250 units total
• · ~ 250 Pluss units
• · Expected sales start: 2022

Source: www.barkarby.se

Agenda

Highlights Operational update Financial update Market Outlook and summary

Outlook

• · Continued good market
• · Macro conditions remain sound
• · Solid pipeline planning sales start of more than 500 units in Q4 2021 and Q1 2022

Summary

• · Solid earnings with good margins
• · Units sold first 9 months up 13% year over year
• · Solid pipeline for coming quarters

Thank you for your attention – follow us online!

Next event: 4 th quarter 2021 15 February 2022

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

2.95 1.75 2.70 3.00 3.21 4.35 6.14 7.04 5.31 1.42 0.00 0.50 1.20 1.50 1.60 3.00 4.50 3.50 6.00 2.00 H2'12 2013 2014 2015 2016 2017 2018 2019 2020* H1'21 Earnings per share Dividend per share 2.95 4.70 7.40 10.40 0.00 0.50 1.70 3.20 Earnings per share Dividend per share

Accumulated dividend and earnings per share

* Includes EPS of NOK 11.02 and DPS of NOK 22 from UP transaction.

Annual dividend and earnings per share

^* Excluding earnings and dividend from UP transaction.

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

			2.00

Source: Oslo Børs.

Share information

• · Number of shareholders: 4 619 (4 665)*
• 20 largest controlling 81.0% (80.2)
• Selvaag AS largest shareholder 53.5%
• · Trading
• 3.5 million shares during the quarter (4.7)
• Share turnover totaled NOK 202 million (288)

^* All numbers in brackets from previous quarter.

Largest shareholders at 30.9, 2021

* 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*	7 504 973	8.0%
PARETO INVEST AS	3 290 989	3.5%
VERDIPAPIRFONDET ALFRED BERG GAMBA	3 117 700	3.3%
JPMorgan Chase Bank, N.A., London*	1 943 435	2.1%
State Street Bank and Trust Comp*	1 353 030	1.4%
Skandinaviska Enskilda Banken AB*	900 000	1.0%
MUSTAD INDUSTRIER AS	870 000	0.9%
Skandinaviska Enskilda Banken AB*	778 922	0.8%
Landkreditt Utbytte	700 000	0.7%
SANDEN AS	670 000	0.7%
BANAN II AS	600 000	0.6%
VERDIPAPIRFONDET EIKA SPAR	597 383	0.6%
SPARHANS AS	550 000	0.6%
Brown Brothers Harriman & Co.*	540 443	0.6%
J.P. Morgan Bank Luxembourg S.A.*	523 659	0.6%
Brown Brothers Harriman & Co.*	519 230	0.6%
SELVAAG BOLIG ASA	467 169	0.5%
VERDIPAPIRFONDET EIKA NORGE	437 374	0.5%
Euroclear Bank S.A./N.V.*	429 959	0.5%
Total 20 largest shareholders	75 974 353	81.0%
Other shareholders	17 791 335	19.0%
Total number of 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 486 units

Stockholm 590 units

Greater-Oslo

8 529 units

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

• Acquire the right mix of zoned and un-zoned land in suitable locations
• Land acquisitions in defined core areas in co-operation with Urban Property
• High degree of site utilization 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 486 units

Geographical spread

Stockholm 590 units

Greater-Oslo 8 529 units

Stavanger 736 units

Bergen 671 units

Land-bank strategy

Note: The numbers represent the size of the land portfolio as at 30 June 2021. All numbers are adjusted for Selvaag Bolig's share in joint ventures. 1) Greater Oslo area: Oslo, Akershus, Buskerud, Vestfold and Østfold, 2) The residential property development portfolio consists of land plots that are to be paid for when planning permission is received. The portfolio has a development potential of ~5 900 residential units.

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

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.

Land bank acquisitions

• Land bank replacement secure long-term growth
• Persistent presence in established areas in Norway
• Increasing exposure in new growth area

Lilleakerveien 47 Oslo	Årstadfältet Stockholm	Slakthus area Stockholm
· Western part of Oslo	· Söderort transformation district	· Söderort transformation district
· Up to 150 units	· 120 units	· 150 units

Barkabystaden Stockholm

• · Söderort transformation district
• · 250 units Plus

Land bank in Oslo and Greater Oslo at 30.9.21

Lørenskog 1 861 units Lørenskog Stasjonsby 613 units Skårer bolig 673 units LSV 300 units

1 861 units

Oslo South 315 units Gjertsrud Stensrud 315 units

Follo/Østfold 1 382 units Langhus 148 units Solberg 80 units Ski 88 units Grenseveien 340 units Fredrikstad 726 units

Lillestrøm

Bjerke 1 025 units

Land bank in Stavanger area at 30.9.21

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

Land bank in Bergen, Trondheim and Stockholm at 30.9.21

*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.

Reduced capital binding in practice, in effect no equity needed in Selvaag Bolig for land

Residential development value chain: cooperation between Selvaag Bolig and Urban Property

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.

	1	PROJECT CALCULATIONS 2		PROJECT CALCULATIONS
		BEFORE URBAN PROPERTY		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%

1

2

• 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

^* Assuming flat market development.

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

Project margin development

** Project margins are exclusive of overhead costs.

NOK million

Substantial portfolio for development

5 130

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

Total land bank portfolio at 30.9.2021

Units

Valuation of remaining land bank*

1 491

^* Part of SBO land bank not included in the UP transaction.

(Nov 2020)

NOK million

Value of units sold - gross and net

Sales value of units sold

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

2020
2 698.0
(1 967.6)
(256.8)
135.0
608.5
(9.8)
045.1 1
643.8 Ί
9.7
1 653.5
(129.9)
523.6

(figures in NOK million)	Q3 2021	Q3 2020	9M 2021	9M 2020	2020
Total operating revenues	886.9	706.1	1 848.9	1 350.7	2 698.0
Project expenses	(698.5)	(562.0)	(1 404.5)	(1 032.7)	(1 967.6)
Other operating expenses	(53.8)	(61.7)	(158.4)	(176.0)	(256.8)
Associated companies and joint ventures	55.3	19.6	100.7	132.1	135.0
EBITDA	189.9	102.0	386.7	274.2	608.5
Depreciation and amortisation	(2.6)	(2.4)	(7.7)	(7.3)	(9.8)
Other gains (loss)	-	-	-	1 028.7	1 045.1
EBIT	187.3	99.5	379.0	1 295.6	1 643.8
Net financial expenses	(1.8)	11.4	(8.1)	10.4	9.7
Profit/(loss) before taxes	185.6	110.9	370.9	1 306.0	1 653.5
Income taxes	(32.2)	(8.6)	(84.4)	(26.3)	(129.9)
Net income	153.4	102.3	286.5	1 279.6	1 523.6

Balance sheet

(figures in NOK million)	Q3 2021	Q2 2021	Q3 2020	2020
Intangible assets	383.4	383.4	383.4	383.4
Property, plant and equipment	6.6	6.8	5.3	7.3
Investments in associated companies and joint ventures	342.6	438.6	398.6	406.9
Other non-current assets	271.7	237.8	236.2	228.1
Total non-current assets	1 004.3	1 066.6	1 023.6	1 025.7
Inventories (property)	4 647.4	4 681.1	4 274.6	3 940.8
- Land	954.7	1 036.2	979.0	909.3
- Land held for sale
- Work in progress	3 584.0	3 542.6	3 171.6	2 911.0
- Finished goods	108.6	102.3	123.9	120.5
Other current receivables	161.4	86.9	491.8	119.0
Cash and cash equivalents	609.7	580.2	361.3	885.3
Total current assets	5 418.5	5 348.2	5 127.7	4 945.1
TOTAL ASSETS	6 422.8	6 414.8	6 151.2	5 970.8
Equity attributed to shareholders in Selvaag Bolig ASA*	2 235.5	2 280.6	2 170.8	2 430.0
Non-controlling interests	7.8	7.8	7.9	7.8
Total equity	2 243.3	2 288.3	2 178.6	2 437.8
Non-current interest-bearing liabilities	1 759.2	1 481.8	1 255.6	1 100.3
Other non-current non interest-bearing liabilities	308.4	292.8	151.9	136.5
Total non-current liabilities	2 067.5	1 774.6	1 407.5	1 236.8
Current interest-bearing liabilities	1 179.4	1 519.1	1 616.1	1 368.1
Other current non interest-bearing liabilities	932.6	832.8	949.1	928.1
Total current liabilities	2 112.0	2 351.9	2 565.1	2 296.2
TOTAL EQUITY AND LIABILITIES	6 422.8	6 414.8	6 151.2	5 970.8

* Corresponding to a book value of NOK per share 23.84

Cash flow statement

(figures in NOK million)	Q3 2021	Q3 2020	9M 2021	9M 2020	2020
Net cash flow from operating activities	174.5	(266.8)	(328.6)	692.8	1 615.7
Net cash flow from investment activities	133.4	31.7	169.1	409.1	413.8
Net cash flow from financing activities	(278.3)	(82.3)	(116.2)	(1 919.3)	(2 322.9)
Net change in cash and cash equivalents	29.5	(317.4)	(275.7)	(817.3)	(293.4)
Cash and cash equivalents at start of period	580.2	678.8	885.3	1 178.7	1 178.7
Cash and cash equivalents at end of period	609.7	361.3	609.7	361.3	885.3

Operational highlights – key operating figures

	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21	Q2 21	Q3 21
Units sold	164	142	178	199	248	173	125
Construction starts	1 5	3 1	196	254	134	142	148
Units completed	8 9	104	212	286	9 5	120	318
Units delivered	114	122	212	272	124	132	314
Units under construction	1 431	1 357	1 342	1 310	1 349	1 371	1 201
Proportion of sold units under construction	76 %	78 %	77 %	74 %	82 %	82 %	76 %
Completed unsold units	3 7	2 5	1 9	1 9	1 7	1 5	1 6
Sales value of units under construction (NOK million)	6 742	6 327	6 660	6 413	6 627	6 749	6 200

EBITDA Q3 2021

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

Total
774.0
(603.3) (56.3) 114.3
886.9 (698.5) (53.8)
55.3 189.9
N/A N/A

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	756.5	17.4	774.0
Project expenses	(603.2)	(0.2)	(603.3)
Other operating expenses	(10.3)	(46.0)	(56.3)
EBITDA (percentage of completion)	143.0	(28.7)	114.3
Note: Construction costs are exclusive of financial expenses in the segment reporting.
IFRS EBITDA for the quarter, per segment
Operating revenues	869.5	17.4	886.9
Project expenses	(698.3)	(0.2)	(698.5)
Other operating expenses	(10.3)	(43.4)	(53.8)
Share of income (losses) from associated companies and
joint ventures	55.3	-	55.3
EBITDA	216.1	(26.2)	189.9
Units in production	1 201	N/A	N/A
Units delivered	314	N/A	N/A

EBITDA 9M 2021

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

Total
2512.9
(1936.7) (166.0)
410.2
1 848.9 (1 404.5) (158.4)
100.6
386.7
N/A N/A

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	2 468.3	44.6	2 512.9
Project expenses	(1 936.3)	(0.4)	(1 936.7)
Other operating expenses	(36.6)	(129.4)	(166.0)
EBITDA (percentage of completion)	495.4	(85.2)	410.2
Note: Construction costs are exclusive of financial expenses in the segment reporting.
IFRS EBITDA full year per segment
Operating revenues	1 804.4	44.6	1 848.9
Project expenses	(1 404.2)	(0.4)	(1 404.5)
Other operating expenses	(36.6)	(121.8)	(158.4)
Share of income (losses) from associated companies and
joint ventures	100.6	-	100.6
EBITDA	464.2	(77.6)	386.7
Units in production	1 201	N/A	N/A
Units delivered	570	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.

Regional price* development October, 2010-21

Source: Eiendom Norge.

* Nominal price change.

** Includes Stavanger, Sola, Sandnes, Randaberg.

Total household debt and homeownership

Household debt in % of net disposable income (2020) Homeownership rate (2019)

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 (2005-21)

Price development (rebased 1.1.2005)

Source: Eiendomsverdi.

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

Increasing share of population growth in Oslo and Akershus

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 2020 - 2030e and 2040e Interest rates* 2013 - 2022e

Source: Bloomberg, UN.

* Central bank rates.

Norway – moving back to normal in through 2022

Wages & disposable income 2019 – 2024e Prices & interest rates 2019 – 2024e

Source: Monetary Policy Report 1|21, Central Bank of Norway.