Selvaag Bolig ASA

Earnings Release • May 22, 2017

Selvaag Bolig ASA: Q1 2017: Large value creation and high margins

Selvaag Bolig ASA: Q1 2017: Large value creation and high margins

Good progress continues to be made by Selvaag Bolig. At 31 March, the company

had homes worth NOK 6.34 billion under construction. Eighty-six per cent were

already sold, and the value was NOK 1.31 billion higher than at the same time

last year.

"We're continuing to deliver good results and margins, and our value creation is

substantial. We've already sold 99 and 87 per cent of the homes due for

completion in 2017 and 2018 respectively. In other words, we'll be continuing to

deliver good results in the time to come." says CEO Baard Schumann.

During the first quarter, Selvaag Bolig further strengthened its land portfolio

with the purchase of four sites in Oslo, Ski and Trondheim which will provide

about 750 homes net in total. Plans call for sales to start for all these sites

from 2019.

"Our sales have been very good in recent years, and we're investing in centrally

located sites in areas experiencing growth pressures. The housing market has

been rather quieter so far this year than in earlier periods, particularly in

Oslo. But we're nevertheless selling steadily and well in all our projects. In

the Stavanger area, on the other hand, the market is better than for a long

time, and we've had a successful sales start in May. We occupy a strong position

in this market," says Schumann.

Highlights of Q1 2017 (Q1 2016 figures in brackets)

* Gross sales* of 238 homes (294) with a sales value of NOK 1 284 million (NOK

1 156 million)

* Net sales of 190 homes (280) with a sales value of NOK 984 million (NOK

1 056 million)

* Average sales price net of NOK 5.2 million (NOK 3.8 million)

* Average sales price gross of NOK 5.4 million (NOK 3.9 million)

* Construction started for 186 homes net (230) and 85 net delivered to the

buyer (179)

* 1479 homes net (1 386) under construction with a combined sales value of NOK

6 230 million (5 031)

* 86% of units under construction (80) sold at 31 March

* 32 completed homes (58) unsold at 31 March

* IFRS:** Operating revenues of NOK 456 million (NOK 624 million), EBITDA

adjusted for financial costs of NOK 94 million (NOK 91 million)

corresponding to a margin of 20.5 per cent (14.6 per cent)

* Earnings per share: NOK 0.82 (NOK 0.45)

* NGAAP:*** Operating revenues of NOK 818 million (NOK 815 million), EBITDA of

NOK 203 million (NOK 132 million) corresponding to a margin of 24.8 per cent

(16.1 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.

Further information from

Baard Schumann, CEO, Selvaag Bolig ASA

Telephone: +47 940 80 000, e-mail: bs@selvaagbolig.no

Sverre Molvik, CFO, Selvaag Bolig ASA

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

Selvaag Bolig ASA is a residential property developer controlling the entire

value chain from acquisition of land to 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 and Trondheim. Selvaag Bolig

represents a continuation of Selvaag's 60-year history and experience, and

offers a broad variety of property types marketed under the brand names Start,

Hjem and Pluss. The company is headquartered at Ullern in Oslo.

www.selvaagboligasa.no/en

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.