Selvaag Bolig ASA

Earnings Release • May 15, 2019

Selvaag Bolig ASA: strong start to 2019, record value of homes under construction

Selvaag Bolig ASA: strong start to 2019, record value of homes under construction

Selvaag Bolig sold 270 homes (2018: 216) worth NOK 1 320 million (NOK 788

million) in the first quarter. Sales were particularly good in the Oslo region.

Ongoing value creation in the company is presented by the operating margin based

on progress and sales in current projects. Operating profit (EBITDA) according

to Norwegian generally accepted accounting principles (NGAAP) came to NOK 154

million in the first quarter (NOK 117 million), corresponding to a margin of

22.7 per cent (20.5 per cent).

At 31 March, Selvaag Bolig had 1 534 homes under construction with a combined

value of NOK 7.1 billion, the highest level ever and a rise of NOK 65 million

from the same period of 2018. Seventy per cent of these units are already sold.

Rolf Thorsen took office in May as the new CEO of Selvaag Bolig ASA in

succession to Olav H Selvaag. He has broad experience of property development

and large, complex housing and urban development projects. His most recent post

was as CEO of Oslo S Utvikling, the company developing the new Bjørvika district

in the city centre.

"I'm taking over the baton in a leading housing and urban development company

with the ability to deliver, a fantastic growth history and a substantial

portfolio of homes under construction. I am now looking forward to continuing

this strong operation and commercial driving force and to realising new projects

together with the rest of the organisation," says Thorsen.

Highlights of the first quarter of 2019 (first quarter of 2018)

·  Gross sales* amounted to 270 homes (216) with a sales value of NOK 1 320

million (NOK 788 million)

·  Net sales of 243 homes (185) with a sales value of NOK 1 183 million (NOK

693 million)

·  Net construction starts for 97 homes (102), net completions of 12 (54) and

net deliveries of 29 to buyers (59)

·  Net construction under way on 1 534 homes (1 511) with a combined sales

value of NOK 7 097 million (NOK 7 032 million)

·  70 per cent (73 per cent) of homes under construction sold at 31 March

·  13 completed homes (19) unsold at 31 March.

·  IFRS**: Operating revenues of NOK 109 million (NOK 381 million), EBITDA

adjusted for financial expenses negative at NOK 9 million (positive at NOK 51

million), corresponding to a negative margin of 8.2 per cent (positive at 13.3

per cent)

·  Earnings per share: negative at NOK 0.16 (positive at NOK 0.34)

·  NGAAP***: Operating revenues of NOK 680 million (NOK 572 million), EBITDA

of NOK 154 million (NOK 117 million), corresponding to a margin of 22.7 per cent

(20.5 per cent)

* Net sales include Selvaag Bolig's share of joint venture projects. Gross sales

include all homes in joint venture projects.

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

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

homes which began to be built roughly two years ago.

*** The accounts pursuant to Norwegian generally accepted accounting principles

(NGAAP) utilise the percentage of completion method. This means that profits are

recognised on the basis of construction progress and sales in the projects. That

presents ongoing value creation in the company.

The webcast of the presentation can be followed live here from

08.30. (https://webtv.hegnar.no/presentation.php?webcastId=97815854)

An English transcript will be made available by 16 May.

Further information from

Rolf Thorsen, CEO, Selvaag Bolig ASA

Telephone: +47 901 19 373, e-mail: rt@selvaagbolig.no

Sverre Molvik, CFO, Selvaag Bolig ASA

Telephone: +47 401 00 585, e-mail: smo@selvaagbolig.no

Kristoffer Gregersen, vice president communication and market, Selvaag Bolig ASA

Telephone: +47 957 75 593, e-mail: kgr@selvaagbolig.no

Selvaag Bolig ASA is a residential property developer which controls the entire

value chain from acquisition of land to sale of turnkey 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 and Trondheim.

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

experience, and offers a broad variety of property types. The company's head

office is at Ullern in Oslo.

www.selvaagboligasa.no/english

This information is subject to the disclosure requirements specified in section

5-12 of the Norwegian Securities Trading Act.