Selvaag Bolig ASA

Earnings Release • Aug 19, 2015

Selvaag Bolig ASA: Q2 2015: strong results and dividend

Selvaag Bolig ASA: Q2 2015: strong results and dividend

Second quarter of 2015:

* IFRS: operating revenues NOK 830 million (2014: NOK 810 million), EBITDA

adjusted for financial expenses NOK 151 million (NOK 125 million),

representing a margin of 18.2 per cent (15.5 per cent)

* NGAAP: operating revenues NOK 858 million (NOK 830 million), EBITDA

(percentage of completion method) NOK 125 million (NOK 121 million),

representing a margin of 14.6 per cent (14.6 per cent)

* 232 homes delivered to buyers (236), 210 sold (255), 199 started (197)

* Land purchase for 400 homes in Oslo

First half of 2015

* IFRS: operating revenues NOK 1.59 billion (NOK 1.05 billion), EBITDA

adjusted for financial expenses NOK 271.6 million (NOK 142.1 million),

representing a margin of 17.1 per cent (13.5 per cent)

* NGAAP: operating revenues NOK 1.69 billion (NOK 1.52 billion), EBITDA

(percentage of completion method) NOK 265.6 million (NOK 244.7 million),

representing a margin of 15.8 per cent (16.1 per cent)

* 456 homes delivered to buyers (316), 518 sold (394), 483 started (274)

* Board proposes a dividend of NOK 0.70 per share for the first half

Selvaag Bolig's operating revenues according to the IFRS increased by 50 per

cent from the first half of 2014. EBITDA adjusted for financial expenses rose by

91 per cent. The company's board proposes a dividend of NOK 0.70 per share for

the period.

"We delivered many homes during the first half, and achieved very good results.

That reflects both good sales in earlier periods and very good targeting with

the projects delivered now," says CEO Baard Schumann.

The good results mean that the board has recommended paying 46 per cent of the

net profit in dividend for the first half of 2015. That amounts to NOK 0.70 per

share.

"Our dividend policy says that our long-term goal is to pay out up to 50 per

cent of our profits. From 2015, we'll also be paying dividend twice a year to

improve liquidity for our shareholders," says Schumann.

Selvaag Bolig started construction on 199 homes during the second quarter, and

had 1 394 under construction at 30 June. These had a collective sales value of

roughly NOK 4.9 billion. The company held 31 completed homes which had not been

sold.

Eighty per cent of the units under construction at 30 June had been sold. Since

sold homes are first recognised as income on delivery, this stock represents

substantial assets for Selvaag Bolig in the time to come.

"We're optimistic about coming quarters. Demand for new homes is high, and

properties put on sale sell fast. We're well positioned with large and

attractive projects in urban areas of Norway experiencing growth pressures,"

says Schumann.

When calculated in accordance with the IFRS, Selvaag Bolig's operating revenues

from homes delivered during the second quarter (IFRS) came to NOK 830 million

and the EBITDA margin adjusted for financial expenses came to 18.2 per cent.

Operating revenues for homes under construction, calculated in accordance with

Norwegian generally accepted accounting principles (NGAAP), for the period were

NOK 858 million and EBITDA came to NOK 125 million - representing a margin of

14.6 per cent.

Comparable figures for the second quarter of 2014 were IFRS operating revenues

of NOK 810 million and the EBITDA margin adjusted for financial expenses came to

15.5 per cent. NGAAP operating revenues were NOK 830 million, EBITDA came to NOK

121 million - representing a margin of 14.6 per cent.

The interim report for the second quarter and first half of 2015 can be

downloaded here: www.selvaagboligasa.no/en

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 of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1946271]