Selvaag Bolig ASA

Investor Presentation • Aug 18, 2020

Oslo, 18 August 2020 Rolf Thorsen, CEO Sverre Molvik, CFO

Q2 2020

Agenda

Highlights and sales

Operational and financial update Market

Outlook and summary

Highlights Q2 2020

• · Strong results considering few deliveries
• · Good sales but impacted by Covid-19
• · Dividend of NOK 3.00 per share H1'20

Completed, ongoing and upcoming projects

Key financials Q2 and H1 2020 - excluding effects from UP transaction

* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted excludes financial expenses included in project costs. Excluding other gains of NOK 1 029m in Q1 2020 ** EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies

Q2 2020		First half year 2020
436	17.3	645
Operating revenues NOK million	Adjusted EBITDA* margin Per cent	Operating revenues NOK million
803	19.1	1 560
Operating revenues (NGAAP) NOK million	EBITDA** margin (NGAAP) Per cent	Operating revenues (NGAAP) NOK million

29.9
Adjusted EBITDA* margin Per cent
20.1
EBITDA** margin (NGAAP) Per cent

Sales value and units sold

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

Rolling sales value and units sold

Sales value 12 months rolling Units sold 12 months rolling

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

Agenda

Highlights and sales Operational and financial update Market Outlook and summary

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

· Q2 2020: 78% of units under construction sold by Q2 2020

· Q2 2020: 99% of construction volume in Greater Oslo Area*

• · Expected completions for the full year 2020: 691 units
  • Somewhat below previous guiding
  • Delayed deliveries due to COVID-19
• · 84% of 2020 completions sold by Q2 2020

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 Q2 2020 (IFRS)

Revenues and adjusted EBITDA margin* (IFRS)

*Q1 2020 adjusted EBITDA margins of 56.1% excluding other gains of NOK 1 029m

* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses included in project costs. Excluding other gains of NOK 1 029m

Operating revenues Adjusted EBITDA-margin

• · 122 units delivered (246)
  • 36 units from share of JVs (17)
• · Revenues NOK 436m (1 035)
  • Other revenues NOK 13m (23)
• · Project costs NOK 337m (705)
  • Of which NOK 14m is interest (34)
• · Other costs NOK 65m (63)
• · Adjusted EBITDA* NOK 75m (316)
• · EBITDA* NOK 62m (282)
• · EPS in the quarter NOK 0.52 (2.24)

Q2 2020 proforma figures including proportionate share of JV

Operating revenues Adjusted EBITDA-margin

^* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses included in project costs. Excluding other gains of NOK 1 029m. The difference compared to reported EBITDA is due to interest, taxes, depreciation and amortization in JVs.

• · 122 units delivered (246)
  • 36 units from share of JVs (17)
• · Revenues NOK 670 (1 119)
  • Other revenues NOK 17m (23)
• · Project costs NOK 534m (760)
  • Of which NOK 23m is interest (37)
• · Other costs NOK 75m (74)
• · Adjusted EBITDA* NOK 89m (328)
• · EBITDA* NOK 65m (291)
• · EPS in the quarter NOK 0.52 (2.24)

H1 2020 proforma figures including proportionate share of JV

Revenues and adjusted EBITDA margin* (IFRS)

*Excluding other gains of NOK 1 029m

NOK million

* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses included in project costs. Excluding other gains of NOK 1 029m

· 236 units delivered (275)

• · Revenues NOK 1 254m (1 310)
  • Other revenues NOK 34m (51)
• · Adjusted EBITDA* NOK 240m (332)

• · EBITDA* NOK 195m (288)

• · EPS in H1 NOK 12.60 (2.08)

  • NOK 1.59 ex UP transaction

Income statement highlights Q2 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 Q2 2020

- 140

Dividends paid to equity holders of Selvaag Bolig ASA

Cash and cash equivalents at 30 June 2020

NOK million

Note: Amounts below NOK 50m are excluded from the cash flow overview

• · Cash flow from operations negative at NOK 223m driven by increased inventory due to high production activity
• · Cash flow from investment activities positive at NOK 157m mainly due to received dividends from JVs
• · Cash flow from financing activities negative at NOK 27m

Balance sheet highlights Q2 2020

Balance sheet composition

Assets Equity and Liabilities

NOK million 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 Cash Non-current assets Current assets · Book value of equity NOK 25.2 per share - Equity ratio of 39.0% · Changes from Q1 2020: - Inventories increased by NOK 223m - Cash decreased by NOK 93m - Trade receivables decreased by NOK 18m · Prepayments from customers represents NOK 303m of other current non-interestbearing liabilities

Inventories (property) Q2 2020

1 656 1 924 2 856 2 560

288 170

NOK million

• · Land value up NOK 26m
  • Mainly due to option premiums UP
• · Work in progress up NOK 223m
  • Due to few completions
• · Finished goods down NOK 26m

Note: UP transaction completed in Q12020. Land bank reduction of NOK 657 million booked Q4 2019 following reclassifications from land to assets held for sale.

Debt structure

	Loan facility	Drawn at 30.6.20 (NOKm)	Interest rate margin*
1	Construction loan facilities from a range of Nordic credit institutions	1 623	1.75% - 2.60%
2	Land loans Urban Property**	729	3.75%***
3	Land loan facilities from a range of Nordic credit institutions	294	2.00% - 2.50%
4	NOK 150 million revolving credit facility from DNB maturing in 2022	0	3.40%
5	NOK 150 million working capital facility from DNB maturing in 2020	0	2.00%

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

Total Q1 2020 net interest-bearing debt NOK 1 746 million

Interest-bearing debt at 30.06.20

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 (%)

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

Margin development through project stages*

^* 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

Earnings and dividend per share

• · H1 2020 EPS of NOK 1.59 (2.08)
  • Reported EPS NOK 12.60. Includes gains of NOK 1 029m from UP transaction
• · H1 2020 DPS of NOK 3.00 (2.00)
  • Additional dividend of NOK 22.00 paid out 3 February 2020

Bi-annual dividend and earnings per share

Agenda

Highlights and sales

Operational and financial update

Market

Outlook and summary

Estimated completions in Oslo well below forecasted need

23

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 Note: Completions exclusive of student- and senior housing

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

Regional price* development 1.1 – 31.07, 2007-20

Bergen

Stavanger area**

Source: Eiendom Norge

* Nominal price change

** Includes Stavanger, Sola, Sandnes, Randaberg

Regional price* development July, 2007-20

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

Stavanger area**

Source: Eiendom Norge

* Nominal price change

** Includes Stavanger, Sola, Sandnes, Randaberg

Solid pipeline for H2 2020

• · Skårerbyen Plus , Greater Oslo area
  • · Serviced lifestyle apartments
  • New product in competitive market
  • 242 units total. Sales start of first 40 units September 2020
• · Sandsli 360, Bergen
  • Project with significant customer interest in advance
  • 199 units total. Sales start of first 67 units in September 2020
• · Lørenskog stasjonsby, Greater Oslo area
  • Urban project next to indoor skiing resort
  • 1 500 units total, 500 built
  • Sales start of 44 units in September
• · Langhus 1405, Greater Oslo area
  • Attractive project in urban growth area
  • 259 units total. Sales start of 53 units in Q3

Skårerbyen Plus

Langhus 1405

Sandsli 360

Lørenskog stasjonsby

Agenda

Highlights and sales

Operational and financial update

Market

Summary and outlook

Outlook

• · Short term uncertainty
• · Re-opening of Norway on hold
• · Interest rates at all time low
• · Regulatory uncertainty, easing of home loan regulations scrutinized

Year to date Short term Longer term

· Long term housing need unaffected

· Population growth well above country average in SBO focus areas

• Urbanization

• Immigration

• · Normal market conditions entering 2020

• · Significant market impact from COVID-19 in April-May
• · Improvement in selected regions entering H2

* Source: Norges Bank

** 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 9 353 units

1 004 units

Stavanger 751 units

Bergen

Addressing the long term housing need

• · Strong results on few deliveries
• · Good sales but impacted by Covid-19
• · Dividend of NOK 3.00 per share H1'20

Summary

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Price development Norway and selected regions (2005-20)

Price development (rebased 01/01/05)

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

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 performance since IPO in June 2012

Source: Oslo Børs

Share information

18 18 18 18 19 19 19 19 20 20

Return on equity (IFRS)

12 months rolling net income (IFRS)* and return on equity**

NOK million

* 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 12 months rolling net income including Other gains of NOK 1 028.7 million

Largest shareholders at 30.6 2020

రం share
53,5%
7,4%
2,6%
2,2%
1,8%
1,5%
1,3%
0,8%
0,7%
0,7%
0,7%
0,6%
0,6%
0,6%
0,6%
0,6%
0,6%
0,6%
0,5%
0,5%
78,7%
21,3%
100,0%

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

Shareholder	# of shares	% share
SELVAAG AS	50 180 087	53,5%
LANDSFORSAKRINGAR FASTIGHETSFOND	6 966 632	7,4%
Morgan Stanley & Co. Int. Plc.	2 483 619	2,6%
PARETO INVEST AS	2 030 578	2,2%
State Street Bank and Trust Comp	1 660 183	1,8%
VERDIPAPIRFONDET ALFRED BERG GAMBA	1 424 301	1,5%
J.P. Morgan Bank Luxembourg S.A.	1 223 236	1,3%
Morgan Stanley & Co. International	764 259	0,8%
MUSTAD INDUSTRIER AS	700 000	0,7%
Landkreditt Utbytte	700 000	0,7%
TMAM EUROPEAN REAL ESTATE SEC	677 190	0,7%
BARCLAYS CAPITAL SEC. LTD FIRM	605 138	0,6%
BANAN II AS	600 000	0,6%
VERDIPAPIRFONDET HOLBERG NORGE	600 000	0,6%
SANDEN AS	550 000	0,6%
Brown Brothers Harriman & Co.	549 800	0,6%
SPARHANS AS	547 221	0,6%
VERDIPAPIRFONDET EIKA SPAR	528 300	0,6%
HOLTA INVEST AS	512 010	0,5%
VERDIPAPIRFONDET EIKA NORGE	446 300	0,5%
Total 20 largest shareholders	73 748 854	78,7%
Other shareholders	20 016 834	21,3%
Total number of shares	93 765 688	100,0%

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 321 units

Geographical spread

Stockholm 125 units

Greater-Oslo 9 353 units

Stavanger 1 004 units

Bergen 751 units

Land-bank strategy

Note: The numbers represent the size of the land portfolio as at 30 June 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 ~6 500 residential units.

Land bank in Oslo and Greater Oslo at 30.6.20

Land bank in Stavanger area at 30.6.20

Land bank in Bergen, Trondheim and Stockholm at 30.6.20

Substantial portfolio for development

Total land bank portfolio at 30.6 2020

Units

Land bank book value vs. external valuation year end

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

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)	Q2 2020	Q2 2019	1H 2020	1H 2019	2019
Total operating revenues	435,5	1 035,2	644,6	1 144,3	3 368,8
Project expenses	(336,8)	(705,2)	(470,7)	(774,7)	(2 279,5)
Other operating expenses	(62,6)	(60,1)	(114,3)	(116,9)	(274,1)
Associated companies and joint ventures	25,9	12,1	112,5	17,7	62,2
EBITDA	61,970	282,0	172,2	270,5	877,5
Depreciation and amortisation	(2,4)	(3,3)	(4,9)	(6,6)	(12,7)
Other gains (loss)	-	-	1 028,7	-	-
EBIT	59,6	278,7	1 196,0	263,9	864,7
Net financial expenses	(1,0)	(3,8)	(1,0)	(9,6)	(10,7)
Profit/(loss) before taxes	58,6	274,9	1 195,1	254,3	854,0
Income taxes	(10,3)	(66,7)	(17,8)	(61,3)	(199,5)
Net income	48,3	208,3	1 177,3	193,0	654,5

Balance sheet

Balance sheet
(figures in NOK million)	Q2 2020	Q1 2020	Q2 2019	2019
Intangible assets	383,4	383,4	383,4	383,4
Property, plant and equipment	5,4	5,5	6,7	5,6
Investments in associated companies and joint ventures	378,8	512,2	393,5	430,3
Other non-current assets	254,3	249,7	489,1	280,4
Total non-current assets	1 021,9	1 150,8	1 272,7	1 099,6
Inventories (property)	4 276,8	4 053,9	4 801,2	3 636,7
- Land	1 088,3	1 062,5	1 656,5	1 020,8
- Land held for sale
- Work in progress	3 077,8	2 855,1	2 856,3	2 433,2
- Finished goods	110,7	136,4	288,4	182,6
Other current receivables	104,7	126,5	505,9	133,3
Cash and cash equivalents Assets held for sale	678,8 -	771,3 -	599,9 -	1 178,7 -
Total current assets	5 060,2	4 951,8	5 907,0	5 812,8
TOTAL ASSETS	6 082,1	6 102,5	7 179,6	6 912,4
Equity attributed to shareholders in Selvaag Bolig ASA*	2 363,6	2 459,4	3 067,5	3 374,2
Non-controlling interests	7,9	7,9	7,9	7,9
Total equity	2 371,4	2 467,2	3 075,3	3 382,1
Non-current interest-bearing liabilities	1 635,8	1 171,5	1 932,7	1 092,3
Other non-current non interest-bearing liabilities	149,5	148,1	195,8	124,2
Total non-current liabilities	1 785,4	1 319,6	2 128,5	1 216,5
Current interest-bearing liabilities	1 010,6	1 345,8	1 032,3	1 161,0
Other current non interest-bearing liabilities	914,6	969,9	943,5	1 094,8
Total current liabilities	1 925,3	2 315,7	1 975,8	2 255,8
TOTAL EQUITY AND LIABILITIES	6 082,1	6 102,5	7 179,6	6 854,4

	2019 383,4 5,6 430,3 280,4 099,6 1 3 636,7 1 020,8 2 433,2
-	182,6 133,3 178,7 5 812,8
	6 912,4
	3 374,2 3 382,1
	1 092,3 124,2 1 216,5
-	161,0 1 094.8 2 255,8

Cash flow statement

Cash flow statement
(figures in NOK million)	Q2 2020	Q2 2019	1H 2020	1H 2019	2019
Net cash flow from operating activities	(223,0)	(128,1)	959,6	(486,2)	985,9
Net cash flow from investment activities	157,3	9,6	377,5	49,3	64,1
Net cash flow from financing activities	(26,9)	153,3	(1 837,0)	379,7	(528,4)
Net change in cash and cash equivalents	(92,6)	34,9	(499,9)	(57,1)	521,7
Cash and cash equivalents at start of period	771,3	565,0	1 178,7	657,0	657,0
Cash and cash equivalents at end of period	678,8	599,9	678,8	599,9	1 178,7

Operational highlights – key operating figures

	Q1 19	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20
Units sold	243	210	159	140	164	142
Construction starts	97	311	174	248	15	31
Units completed	12	307	203	254	89	104
Units delivered	29	246	243	214	114	122
Units under construction	1 534	1 538	1 510	1 504	1 431	1 357
Proportion of sold units under construction	70 %	71 %	72 %	70 %	76 %	78 %
Completed unsold units	13	48	34	56	37	25
Sales value of units under construction (NOK million)	7 097	7 039	7 192	7 155	6 742	6 327
Number of employees	91	91	91	87	87	87

EBITDA Q2 2020

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	791,1	12,1	803,2
Project expenses	(584,7)	(0,1)	(584,8)
Other operating expenses	(15,7)	(49,5)	(65,1)
EBITDA (percentage of completion)	190,8	(37,5)	153,3
Note: Construction costs are exclusive of financial expenses in the segment reporting.
IFRS EBITDA for the quarter, per segment
Operating revenues	423,4	12,1	435,5
Project expenses	(336,6)	(0,1)	(336,8)
Other operating expenses	(13,2)	(49,5)	(62,6)
Share of income (losses) from associated companies
and joint ventures	25,9	-	25,9
EBITDA	99,5	(37,5)	62,0
Units in production	1 357	N/A	N/A
Units delivered	122	N/A	N/A
Note: EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies

EBITDA H1 2020

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	1 535,3	24,3	1 559,5
Project expenses	(1 127,1)	(0,4)	(1 127,5)
Other operating expenses	(22,7)	(96,5)	(119,2)
EBITDA (percentage of completion)	385,5	(72,7)	312,8
Note: Construction costs are exclusive of financial expenses in the segment reporting.
IFRS EBITDA full year per segment
Operating revenues	620,4	24,3	644,6
Project expenses	(470,3)	(0,4)	(470,7)
Other operating expenses	(17,8)	(96,5)	(114,3)
Share of income (losses) from associated companies
and joint ventures	112,5	-	112,5
EBITDA	244,9	(72,7)	172,2
Units in production	I/A	N/A	N/A
Units delivered	I/A	N/A	N/A
Note: EBITDA is operating profit before depreciation, gains (losses) and profit from associated
companies

Value of units sold - gross and net

209

Sales value of units sold

443 487 1 367 1 130 764 999 ^{633 690 632 693 751 771} 614 1 183 1 106 1 642 1 234 870 1 314 710 849 696 788 862 861 660 1 320 1 393 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Sales value of sold units (net) Sales value of sold units (gross) NOK million

59

Number of units sold - gross and net

Number of units sold

Untis sold net Units sold gross

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 – robust economic conditions

Population growth 2020 - 2030e and 2040e Interest rates* 2012 - 2021e

Source: Bloomberg, UN

* Central bank rates

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* but higher IRR and less/no equity bound in land

* 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

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• -

· 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%