Selvaag Bolig ASA

Investor Presentation • Nov 11, 2020

Oslo, 11 November 2020 Sverre Molvik, CEO

Q3 2020

2

Agenda

Highlights

Operational and financial update Market Outlook and summary

Highlights Q3 2020

• · Strong sales in turbulent market
• · Sales value of units under construction up NOK 330 million
• · Continued strong project margins
• · Sverre Molvik new CEO

Key financials Q3 2020

706
Operating revenues NOK million
707
Operating revenues (NGAAP) NOK million

EBITDA** margin (NGAAP) Per cent

18.1

Adjusted EBITDA* margin Per cent

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

** EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies

Agenda

Highlights

Operational and financial update Market

Outlook and summary

Sales value

Sales value and units sold

Number of units sold per quarter

NOK million Units

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

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 months rolling Units sold 12 months rolling

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

• · Q3 2020: 77% of units under construction sold by Q3 2020
• · Q3 2020: 99% of construction volume in Greater Oslo Area*
• -
• · Expected completions for the full year 2021: 867 units

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

Income statement highlights Q3 2020 (IFRS)

Revenues and adjusted EBITDA margin* (IFRS)

Operating revenues Adjusted EBITDA-margin

^* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding *Q1 2020 adjusted EBITDA margins of 56.1% excluding other gains of NOK 1 029m financial expenses included in project costs.

Income statement highlights Q3 2020 (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 2020

361

Dividends paid to equity holders of Selvaag Bolig ASA

Cash and cash equivalents at 30 September 2020

NOK million

Note: Amounts below NOK 60m are excluded from the cash flow overview

• · Cash flow from operations negative at NOK 267m mainly due to increase in short term receivables settled in October and income taxes paid
• · Cash flow from investing activities positive at NOK 32m mainly due sale of financial investment and repayment of loans given
• · Cash flow from financing activities negative at NOK 82m due to dividends paid, partly offset by increased construction loans

Balance sheet highlights Q3 2020

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 23.2 per share - Equity ratio down to 35.4% due to dividend · Changes from Q2 2020: - Inventories decreased by NOK 2m - Trade and Other receivables increased by NOK 387m - Cash decreased by NOK 317m · Prepayments from customers represents NOK 333m of other current non-interestbearing liabilities NOK million

Inventories (property) Q3 2020

Q3 20 vs Q2 20 Inventory value development

• Mainly due to construction starts
• · Work in progress up NOK 94m
  • Mainly due to construction starts
• · Finished goods up NOK 13m

Note: UP transaction completed in Q12020. Land bank reduction of NOK 657 million booked

NOK million

Debt structure

Drawn at 30.09.20 (NOKm) Interest rate margin* 1 833 1.75% - 2.60% 2 Land loans Urban Property** 731 3.75%*** 308 2.00% - 2.50% 0 3.40% 0 2.00%

Total Q3 2020 net interest-bearing debt NOK 2 510 million

Total Q2 2020 net interest-bearing debt NOK 1 968 million

Interest-bearing debt at 30.09.20

NOK million

* Margin to 3m NIBOR

** Repurchase agreements portfolio B

*** + 2.00% fee at property repurchase

* Repurchase agreements portfolio B

Return on equity (IFRS)

12 months 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)

12 months rolling net income (NOKm) ROE (%)

Net income* Return on equity**

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

^* Assuming flat market development

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

Project margin development

NOK million

^** Project margins are exclusive of overhead costs

Agenda

Highlights

Operational and financial update Market

Outlook and summary

Estimated completions in Oslo well below forecasted need

20 Note: Completions exclusive of student- and senior housing * Estimates based on actual start and time of construction

Sources: Historic data: Statistics Norway (SSB), Forecasted housing completions: Econ, 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

Newbuild market update

Source: SA - ECON Nye Boliger

* Adjusted for temporary withdrawals or cancellations during the period

Newbuild market update

Source: SA - ECON Nye Boliger

* Adjusted for temporary withdrawals or cancellations during the period

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

* Include Stavanger, Sola, Sandnes, Randaberg

Price* development Oslo 1.1-31.10, 2007-20

27

Source: Eiendom Norge * Nominal price change

Solid H2 2020 pipeline

Skårerbyen Plus | Greater Oslo

• · Serviced lifestyle apartments
• · New product in competitive market
• · 242 units total
• · Successful sales start September 2020

Langhus 1405 | Greater Oslo

· Attractive project in urban growth area

· 259 units total

· Successful sales start November 2020

Lørenskog stasjonsby | Greater Oslo

• · Urban project next to indoor skiing resort
• · 1 500 units total, 500 built

Selvaag Bolig Pluss - Housing with services and experiences

• · Expanded offering within existing large projects
  • · Broadens the customer base
  • · Speeds up development
  • · Helps optimise the sales and income profile of each project
  • · Creates more attractive neighborhoods
• · Skårerbyen Pluss well received
• · Landås Pluss under construction

Upcoming projects 2021 to 2023

Sinsenveien | Oslo

• · ~350 units (50/50 JV)
• · Expected sales start: 2021
• · Expected sales value: NOK 2.0bn

Fornebu | Greater-Oslo

• · ~1 800 units (50/50 JV)
• · Expected sales start: 2024
• · Expected sales value: NOK 13 bn

Lørenvangen | Oslo

• · ~160 units
• · Expected sales start: 2021/2022
• · Expected sales value: NOK 1.0bn

Bjerke | Oslo

• · ~1 200 units
• · Expected sales start: 2024
• · Expected sales value: NOK 7.0 bn

Agenda

Highlights Operational and financial update Market Outlook and summary

• · Continued positive market sentiment in Q4, especially in Greater Oslo
• · Attractive projects for sale in all the markets where we operate
• · Positioned with competitive housing offering, substantial capacity and a large land bank

Outlook

• · Strong sales in turbulent market
• · Sales value of units under construction up NOK 330 million
• · Continued strong project margins
• · Well positioned with competitive housing offerings

Summary

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Next event: 4 th quarter 2020 17 February 2021

Share performance since IPO in June 2012

Source: Oslo Børs

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

Earnings and dividend per share since IPO

• FY 2019 EPS of NOK 7.04 (6.14)
• FY 2019 DPS of NOK 3.50 (4.50)
• H1 2020 EPS of NOK 12.60 (2.08)
• H1 2020 DPS of NOK 3.00 (2.00)
• 2020 additional DPS of NOK 22.00

Accumulated dividend and earnings per share

-

* Additional dividend of NOK 22 per share paid out 3 February 2020

Share information

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17

18

18

18

18

19

19

19

19

20

20

20

^* All numbers in brackets from previous quarter

Largest shareholders at 30.9, 2020

* 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 *	6 966 632	7.4%
Morgan Stanley & Co. Int. Plc. *	2 492 699	2.7%
PARETO INVEST AS	2 065 624	2.2%
VERDIPAPIRFONDET ALFRED BERG GAMBA	1 684 929	1.8%
State Street Bank and Trust Comp *	1 556 366	1.7%
J.P. Morgan Bank Luxembourg S.A. *	1 138 976	1.2%
JPMorgan Chase Bank, N.A., London *	883 456	0.9%
MUSTAD INDUSTRIER AS	770 000	0.8%
Brown Brothers Harriman & Co.	710 107	0.8%
Landkreditt Utbytte	650 000	0.7%
VERDIPAPIRFONDET HOLBERG NORGE	650 000	0.7%
SELVAAG BOLIG ASA	644 375	0.7%
Morgan Stanley & Co. International	611 637	0.7%
BANAN II AS	600 000	0.6%
SANDEN AS	570 000	0.6%
SPARHANS AS	547 221	0.6%
VERDIPAPIRFONDET EIKA SPAR	528 300	0.6%
Brown Brothers Harriman & Co. *	522 650	0.6%
HOLTA INVEST AS	471 410	0.5%
Total 20 largest shareholders	74 244 469	79.2%
Other shareholders	19 521 219	20.8%
Total number of shares	93 765 688	100.0%

Price development Norway and selected regions (2005-20)

Price development (rebased 1.1.2005)

Source: Eiendomsverdi

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

Regional price* development 1.1-31.10, 2007-20

42

Source: Eiendom Norge * Nominal price change

** Includes Stavanger, Sola, Sandnes, Randaberg

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5.1%

-0.7%

12.6%

8.6%

10.8% 9.5% 7.9% 6.5% 6.3% 8.2% 7.6%

5.1% 6.8% 7.7%

Trondheim

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Stavanger area**

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

• · 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

Trondheim 321 units

Stockholm 125 units

Greater-Oslo 9 168 units

Addressing the long term housing need

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

Geographical spread

Stockholm 125 units

Stavanger 993 units

Bergen 751 units

Land-bank strategy

Note: The numbers represent the size of the land portfolio as at 30 September 2020. 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 ~6 250 residential units.

Land bank in Oslo and Greater Oslo at 30.9.20

Land bank in Stavanger area at 30.9.20

*The numbers are adjusted for Selvaag Bolig's share in joint ventures 47

Land bank in Bergen, Trondheim and Stockholm at 30.9.20

Substantial portfolio for development

Total land bank portfolio at 30.9 2020

Units

Land bank book value vs. external valuation year end

Note: Joint ventures and land options not included in the valuation

Q3 2020 proforma figures including proportionate share of JV

^* 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.

• · 212 units delivered (243)
  • 18 units from share of JVs (46)
• · Revenues NOK 861 (1 045)
  • Other revenues NOK 20m (26)
• · Project costs NOK 688m (713)
  • Of which NOK 28m is interest (30)
• · Other costs NOK 78m (84)
• · Adjusted EBITDA* NOK 133m (284)
• · EBITDA* NOK 105m (255)
• · EPS in the quarter NOK 1.10 (1.97)

Income statement IFRS

2019
3 368.8
(2 279.5)
(274.1)
62.2
877.5
(12.7)
864.7
(10.7)
854.0
(199.5)
654.5

Income statement IFRS
(figures in NOK million)	Q3 2020	Q3 2019	9M 2020	9M 2019	2019
Total operating revenues	706.1	810.0	1 350.7	1 954.4	3 368.8
Project expenses	(562.0)	(568.1)	(1 032.7)	(1 342.8)	(2 279.5)
Other operating expenses	(61.7)	(68.4)	(176.0)	(185.3)	(274.1)
Associated companies and joint ventures	19.6	58.2	132.1	75.9	62.2
EBITDA	101.974	231.7	274.194	502.2	877.5
Depreciation and amortisation	(2.4)	(3.3)	(7.3)	(9.9)	(12.7)
Other gains (loss)	-	-	1 028.7	-	-
EBIT	99.5	228.4	1 295.6	492.3	864.7
Net financial expenses	11.4	(3.4)	10.4	(13.0)	(10.7)
Profit/(loss) before taxes	110.9	225.0	1 306.0	479.3	854.0
Income taxes	(8.6)	(42.1)	(26.3)	(103.4)	(199.5)
Net income	102.3	182.9	1 279.6	375.9	654.5

Balance sheet

(figures in NOK million)	Q3 2020	Q2 2020	Q3 2019	2019
Intangible assets	383.4	383.4	383.4	383.4
Property, plant and equipment	5.3	5.4	6.1	5.6
Investments in associated companies and joint ventures	398.6	378.8	418.7	430.3
Other non-current assets	236.2	254.3	496.6	280.4
Total non-current assets	1 023.6	1 021.9	1 304.7	1 099.6
Inventories (property)	4 274.6	4 276.8	4 654.4	3 636.7
- Land	979.0	1 088.3	1 924.0	1 020.8
- Land held for sale
- Work in progress	3 171.6	3 077.8	2 560.5	2 433.2
- Finished goods	123.9	110.7	169.9	182.6
Other current receivables	491.8	104.7	325.7	133.3
Cash and cash equivalents	361.3	678.8	488.3	1 178.7
Assets held for sale	-	-	-	-
Total current assets	5 127.7	5 060.2	5 468.4	5 812.8
TOTAL ASSETS	6 151.2	6 082.1	6 773.1	6 912.4
Equity attributed to shareholders in Selvaag Bolig ASA*	2 170.8	2 363.6	3 064.5	3 374.2
Non-controlling interests	7.9	7.9	7.9	7.9
Total equity	2 178.6	2 371.4	3 072.4	3 382.1
Non-current interest-bearing liabilities	1 255.6	1 635.8	1 741.1	1 092.3
Other non-current non interest-bearing liabilities	151.9	149.5	194.2	124.2
Total non-current liabilities	1 407.5	1 785.4	1 935.3	1 216.5
Current interest-bearing liabilities	1 616.1	1 010.6	759.9	1 161.0
Other current non interest-bearing liabilities	949.1	914.6	1 005.5	1 152.8
Total current liabilities	2 565.1	1 925.3	1 765.4	2 313.9
TOTAL EQUITY AND LIABILITIES	6 151.2	6 082.1	6 773.1	6 912.4
* Corresponding to a book value of NOK per share	23.15

Cash flow statement

2019
985.9
64.1
(528.4)
521.7
657.0
1 178.7

Cash flow statement
(figures in NOK million)	Q3 2020	Q3 2019	9M 2020	9M 2019	2019
Net cash flow from operating activities	(266.8)	528.4	692.8	42.2	985.9
Net cash flow from investment activities	31.7	24.5	409.1	73.8	64.1
Net cash flow from financing activities	(82.3)	(664.5)	(1 919.3)	(284.8)	(528.4)
Net change in cash and cash equivalents	(317.4)	(111.6)	(817.3)	(168.8)	521.7
Cash and cash equivalents at start of period	678.8	599.9	1 178.7	657.0	657.0
Cash and cash equivalents at end of period	361.3	488.3	361.3	488.3	1 178.7

Q3 20
178
196
212
212
1 342
77%
19
6 660
85

	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20
Units sold	159	140	164	142	178
Construction starts	174	248	15	31	196
Units completed	203	254	89	104	212
Units delivered	243	214	114	122	212
Units under construction	1 510	1 504	1 431	1 357	1 342
Proportion of sold units under construction	72 %	70 %	76 %	78 %	77 %
Completed unsold units	34	56	37	25	19
Sales value of units under construction (NOK million)	7 192	7 155	6 742	6 327	6 660
Number of employees	91	87	87	87	85

Operational highlights – key operating figures

EBITDA Q3 2020

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

Total
707.0
(492.2) (64.2) 150.6
706.1 (561.8) (61.9)
19.6 102.0
N/A N/A

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	692.1	14.9	707.0
Project expenses	(492.2)	(0.1)	(492.2)
Other operating expenses	(10.2)	(54.0)	(64.2)
EBITDA (percentage of completion)	189.7	(39.2)	150.6
Note: Construction costs are exclusive of financial expenses in the segment reporting.
IFRS EBITDA for the quarter, per segment
Operating revenues	691.2	14.9	706.1
Project expenses	(561.8)	(0.1)	(561.8)
Other operating expenses	(7.9)	(54.0)	(61.9)
Share of income (losses) from associated companies
and joint ventures	19.6	-	19.6
EBITDA	141.1	(39.2)	102.0
Units in production	1 342	N/A	N/A
Units delivered	212	N/A	N/A

EBITDA 9M 2020

Note: EBITDA is operating profit before interest, taxes, depreciation, amortisation and other gains (losses).

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	2 227.4	39.2	2 266.5
Project expenses	(1 619.2)	(0.5)	(1 619.7)
Other operating expenses	(32.9)	(150.5)	(183.5)
EBITDA (percentage of completion)	575.2	(111.8)	463.4
Note: Construction costs are exclusive of financial expenses in the segment reporting.
IFRS EBITDA full year per segment
Operating revenues	1 311.6	39.2	1 350.7
Project expenses	(1 032.0)	(0.5)	(1 032.5)
Other operating expenses	(25.7)	(150.5)	(176.2)
Share of income (losses) from associated companies
and joint ventures	132.1	-	132.1
EBITDA	386.0	(111.8)	274.2
Units in production	I/A	N/A	N/A
Units delivered	I/A	N/A	N/A

Value of units sold - gross and net

Sales value of units sold

NOK million

Number of units sold - gross and net

Number of units sold

192	169	196	186	209
443 159	140	394 164	142	178

Untis sold net Units sold gross

Units

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

Total household debt and homeownership

Household debt in % of net disposable income (2019) Homeownership rate (2018)

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

Immigration increases demand over time

of years in 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 2021

Wages & disposable income 2019 – 2023e Prices & interest rates 2019 – 2023e

Source: Central Bank of Norway

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

Historic general margin development through project stages

^* Assuming flat market development

Example project calculations before and after

	1	BOOK VALUE OF LAND	2	MARKET VALUE OF LAND	3	LAND OWNED BY URBAN PROPERTY
Figures for illustration purposes only	MNOK	%	MNOK	%	MNOK	%
Sales revenue	348.5	100.0 %	348.5	100.0%	348.5	100.0%
Construction cost	195.8	56.2 %	195.8	56.2%	195.8	56.2%
Land cost	34.9	10.0 %	69.7	20.0%	85.2	24.4%
Other costs	24.5	7.0 %	24.5	7.0%	24.5	7.0%
Project cost	255.2	73.2 %	290.0	83.2%	305.5	87.7%
Net finance (excluding Urban Property)	11.0	3.2 %	16.8	4.8%	5.3	1.5%
TOTAL REVENUE	348.5	100.0 %	348.5	100.0%	348.5	100.0%
TOTAL COST	266.2	76.4 %	306.8	88.0%	310.9	89.2%
PROFIT	82.3	23.6 %	41.7	12.0 %	37.7	10.8%
Internal rate of return (IRR)		25.0 %		12.2%		28.0%
	One-off gain on owned land		Implications on current land bank		Future projects given a flat

market development

2

3

• 1 Initial project margin and IRR at current structure with book value of land about half of market value
  • Initial project margin and IRR at current structure given land at marked value
  • Initial project margin and IRR with Urban Property as partner and land at marked value (in addition to option premium)

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 67

Project margin will somewhat deflate*

^* Assuming flat market development

Balance sheet implications and effects of dividend

Statements of financial position	Reported	Transaction		Pro forma
(figures in MNOK)	Q4 2019	Sale	Dividend	Q4 2019
ASSETS
Investments in associated companies and joint ventures	430	0	0	430
Loans to associated companies and joint ventures	130	-59	0	71
Other non-current assets	741	-143	0	598
Total non-current assets	1 301	-202	0	1 100
Inventory	4 299	-663	0	3 637
Other current receivables	133	0	0	133
Cash and cash equivalents	1 179	1 751	-2 055	875
Total current assets	5 611	1 088	-2 055	4 645
TOTAL ASSETS	6 912	887	-2 055	5 744
EQUITY AND LIABILITIES
Total equity	3 383	1 043	-2 055	2 371
LIABILITIES
Other non-current non interest-bearing liabiliteies	157	0	0	157
Non-current interest bearing liabilities	1 128	-157	0	971
Total non-current liabilities	1 284	-157	0	1 128
Current interest bearing liabilities	1 169	0	0	1 169
Other current non interest-bearing liabilities	1 076	0	0	1 076
Total current liabilities	2 245	0	0	2 245
Total liabilities	3 530	-157	0	3 373
TOTAL EQUITY AND LIABILITIES	6 912	887	-2 055	5 744
Equity%	49 %			41 %
Dividend per share (NOK)			22,0

-

-

• -

· Transaction value NOK 3 360m

· Repayment of debt NOK 1 160m

· Free liquidity from transaction NOK 1 800m

· EO dividend NOK 22 per share

· Pro forma equity down ~NOK 1 000 to NOK 2 364m - Equity ratio 41%, down from 49%