Quarterly Report • May 21, 2015
Quarterly Report
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(Figures in brackets relate to the same period of the year before) * Adjusted EBITDA is less financial expenses included in project costs.
| (figures in NOK 1 000) | Q1 2015 | Q1 2014 | 2014 |
|---|---|---|---|
| IFRS main figures | |||
| Operating revenues | 755 627 | 244 581 | 2 945 246 |
| EBITDA | 98 620 | 9 005 | 386 917 |
| EBITDA adjusted* | 120 739 | 16 662 | 488 593 |
| Operating profit/(loss) | 92 812 | 3 787 | 365 712 |
| Profit/(loss) before taxes | 84 852 | (2 522) | 348 706 |
| Cash flow from operating activities | 97 714 | (413 703) | 187 251 |
| Net cash flow | 97 332 | (441) | (21 112) |
| Interest-bearing liabilities | 2 761 009 | 3 217 722 | 2 711 919 |
| Total assets | 6 328 174 | 6 448 970 | 6 214 244 |
| Equity | 2 519 160 | 2 457 298 | 2 457 298 |
| Equity ratio | 39.8% | 35.0% | 39.5% |
| Earnings per share in NOK | 0.66 | (0.03) | 2.70 |
| Segment reporting (NGAAP): | |||
| Operating revenues | 827 063 | 688 204 | 3 113 210 |
| EBITDA** | 140 283 | 123 762 | 495 436 |
| EBITDA margin | 17.0% | 18.0% | 15.9% |
| Key figures: | |||
| Number of units sold | 308 | 139 | 886 |
| Number of construction starts | 284 | 77 | 757 |
| Number of units delivered | 224 | 80 | 861 |
| Number of units completed | 208 | 77 | 923 |
* EBITDA adjusted is excluding financial expenses included in project costs, see note 6 for details.
** EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies.
| (figures in NOK 1 000) | Q1 2015 | Q1 2014 | 2014 |
|---|---|---|---|
| Total operating revenues | 755 627 | 244 581 | 2 945 246 |
| Project expenses | (609 485) | (193 070) | (2 371 797) |
| Other operating expenses, salaries and personnel cost, depreciation | |||
| and amortisation | (60 253) | (46 517) | (236 659) |
| Associated companies and joint ventures | 6 923 | (1 207) | 28 922 |
| Total operating expenses | (662 815) | (240 794) | (2 579 534) |
| Operating profit | 92 812 | 3 787 | 365 712 |
| Net financial expenses | (7 960) | (6 309) | (17 006) |
| Profit before taxes | 84 852 | (2 522) | 348 706 |
| Income taxes | (22 995) | 651 | (94 175) |
| Net income | 61 857 | (1 871) | 254 531 |
(Figures in brackets relate to the corresponding period of 2014. The figures are unaudited.)
Selvaag Bolig had operating revenues of NOK 755.6 million (NOK 244.6 million) in the first quarter. Revenues from units delivered totalled NOK 729.5 million (NOK 224.5 million) for the period. Land sales came to NOK 11.3 million. Other revenues related to non-core activities, mainly rental of commercial premises.
A total of 224 units (80) were delivered in the quarter, including 194 (79) from consolidated project companies.
Project costs for the quarter totalled NOK 609.5 million (NOK 193.1 million), of which NOK 22.1 million (NOK 7.7 million) represented previously capitalised financial expenses. Overall project costs related primarily to construction costs for units delivered as well as costs in projects which do not qualify for capitalisation as inventories. The rise in project costs reflected more units delivered than in the same period of 2014.
Operating costs excluding project costs and the share of results from associated companies came to NOK 60.3 million (NOK 46.5 million) for the quarter. Payroll costs accounted for NOK 23.5 million (NOK 16.5 million) of this figure. NOK 9.5 million (NOK 10.5 million) in payroll costs related to housing under construction was capitalised during the period and will be expensed as project costs on future delivery. Furthermore, other operating costs came to NOK 31.0 million (NOK 24.8 million) for the quarter, including NOK 11.9 million (NOK 8.1 million) for sales and marketing.
The share of profit from associates and joint ventures came to NOK 6.9 million (loss of NOK 1.2 million).
EBITDA adjusted for financial expenses included in project costs came to NOK 120.7 million (NOK 16.7 million). Ordinary EBITDA was NOK 98.6 million (NOK 9 million), corresponding to a margin of 13.1 per cent (3.7 per cent).
Consolidated depreciation and amortisation totalled NOK 5.8 million (NOK 5.2 million), so that consolidated operating profit for the quarter came to NOK 92.8 million (NOK 3.8 million).
Net financial expenses came to NOK 8 million (NOK 6.3 million). Pre-tax profit for the quarter was NOK 84.9 million (loss of NOK 2.5 million).
Net tax expense was NOK 23 million (income of NOK 0.7 million) for the quarter. Consolidated net profit came to NOK 61.9 million (loss of NOK 1.9 million). The whole profit of NOK 61.9 million was attributable to the shareholders of Selvaag Bolig ASA (loss of NOK 3 million), with NOK 0 (NOK 1.1 million) for non-controlling shareholders.
Consolidated net cash flow from operational activities was NOK 97.7 million (negative at NOK 413.7 million) for the quarter. The increase from 2014 primarily reflected more units delivered and a reduction in accounts receivable from settlement provider client accounts for units delivered. Payment for such deliveries will often take place in the following quarter, since the money is held in the estate agent's client account until the sale has been legally registered.
Net cash flow from investing activities was negative at NOK 37.7 million (NOK 2.6 million) for the quarter. Pay-outs primarily reflected NOK 36.6 million for investment in the Sinsenveien 45-49 joint venture, as well as the acquisition of fixtures, fittings and equipment.
Net cash flow from financing activities came to NOK 37.4 million (NOK 415.8 million) in the quarter. The change from the corresponding period of 2014 primarily reflected increased redemption of debt related to projects delivered this year plus an overdraft repayment of NOK 55 million.
The holding of cash and cash equivalents increased by NOK 97.3 million during the first quarter. The group's total holding at 31 March thereby came to NOK 663.3 million (NOK 586.6 million).
| Cash flow summary | |||
|---|---|---|---|
| (figures in NOK 1 000) | Q1 2015 | Q1 2014 | 2014 |
| Profit before taxes | 84 852 | (2 522) | 348 706 |
| Net cash flow from operating activities | 97 714 | (413 703) | 187 251 |
| Net cash flow from investment activities | (37 745) | (2 575) | (5 678) |
| Net cash flow from financing activities | 37 363 | 415 837 | (202 685) |
| Net change in cash and cash equivalents | 97 332 | (441) | (21 112) |
| Cash and cash equivalents at start of period | 565 930 | 587 042 | 587 042 |
| Cash and cash equivalents at end of period | 663 262 | 586 601 | 565 930 |
The carrying amount of Selvaag Bolig's total inventories (land, units under construction and completed units) at 31 March was NOK 4 563.1 million, compared with NOK 4 348.8 million at 31 December and NOK 4 661.3 million a year earlier. The increase from the end of 2014 primarily reflected new land acquisitions and a high level of construction activity. Delivered units reduced the effect. The value of completed units declined from NOK 374.1 million at 31 December to NOK 359.2 million, reflecting delivered units. See note 5 for a further specification of inventories.
Equity was NOK 2 519.2 million (NOK 2 257.1 million) at 31 March, corresponding to an equity ratio of 39.8 per cent (35 per cent). Non-controlling interests amounted to NOK 14.7 million (NOK 23.8 million) of equity. The decline reflected payments of NOK 9.2 million to non-controlling shareholders last year.
Other current non-interest-bearing liabilities totalled NOK 542.6 million (NOK 641.6 million) at 31 March, of which NOK 290 million (NOK 328.1 million) represented advance payments from customers.
At 31 March, consolidated interest-bearing debt amounted to NOK 2 761 million (NOK 3 217.7 million), of which NOK 1 685.6 million (NOK 2 330.7 million) was non-current and NOK 1 075.4 million (NOK 887 million) was current. The change from 2014 primarily resulted from the redemption of construction loans for completed projects. The increased share of current liabilities reflected a rise in the proportion of projects approaching completion.
The group had land loans of NOK 1 124.2 million (NOK 1 175.3 million) at 31 March. These are normally converted to construction loans in line with the progress of the respective construction projects.
Two undrawn overdraft facilities of NOK 150 million each were held by the group at 31 March.
The group has an unsecured bond loan of NOK 500 million, with a five-year term and quarterly interest payments from 27 September 2013. Interest on the loan is three months Nibor plus 475 basis points. The bond incorporates covenants which require the company to maintain 1) a minimum equity ratio of 25 per cent until 30 June 2017 and then 27.5 per cent until maturity in June 2018 and 2) a sales ratio of at least 60 per cent for units under construction. Both covenants were fulfilled at 31 March 2015, with an equity ratio of 39.8 per cent and a sales ratio of 81 per cent. The bond was listed on the Oslo Stock Exchange in the third quarter of 2013.
| (figures in NOK 1 000) | Q1 2015 | Q1 2014 | 2014 |
|---|---|---|---|
| Non-current interest-bearing debt | 1 685 564 | 2 330 703 | 1 752 401 |
| Current interest-bearing debt | 1 075 445 | 887 019 | 959 518 |
| Cash and cash equivalents | (663 262) | (586 601) | (565 930) |
| Net interest-bearing debt | 2 097 747 | 2 631 121 | 2 145 989 |
The group's interest-bearing debt falls primarily into three categories: liabilities in parent company Selvaag Bolig ASA (top-up loans), land loans and construction loans. At 31 March, the group had a top-up loan of NOK 492 million, land loans of NOK 1 124 million and construction loans of NOK 1 145 million. The top-up loan consisted of a bond carried at a net amortised cost of NOK 492 million.
charges on construction loans are capitalised during the construction period and recognised under cost of sales in the same way. At 31 March, interest on NOK 704 million in land loans had been capitalised, while interest charges relating to NOK 420 million in loans were recognised in profit and loss.
Interest costs on land loans are normally recognised in profit and loss until the site secures planning permission. They are capitalised against the site from the day the project secures planning permission, and recognised in profit and loss as part of the cost of sales when the units are delivered. Interest
Each project is followed up individually in daily operations, and operational reporting accordingly comprises one main segment – housing development. Previously, up to the first quarter of 2015, the company reported the housing development segment broken down geographically between Greater Oslo, the rest of Norway and other countries. Reporting also comprises the "other business" segment. The latter primarily includes service deliveries in completed Pluss projects as well as group administration not allocated to the main segment. Operational reporting utilises the percentage of completion method for recognising revenues and profit, which differs from the IFRS where profit is recognised on delivery. Note 4 to the financial statements presents segment information reconciled with the financial reporting figures (IFRS).
| Operating revenues | EBITDA | Operating profit/loss | ||||||
|---|---|---|---|---|---|---|---|---|
| (figures in NOK 1 000) | Q1 15 | Q1 14 | Q1 15 | Q1 14 | Q1 15 | Q1 14 | ||
| Property development | 819 935 | 678 637 | 171 605 | 146 242 | 150 561 | 123 404 | ||
| Other | 7 128 | 9 567 | (31 322) | (22 480) | (32 355) | (24 039) | ||
| IFRS adjustments | (71 436) | (443 623) | (41 663) | (114 757) | (25 394) | (95 578) | ||
| Total group | 755 627 | 244 581 | 98 620 | 9 005 | 92 812 | 3 787 |
This segment comprises all Selvaag Bolig's projects regardless of geographical location. The company previously differentiated between projects in Greater Oslo, the rest of Norway and other countries. Each project is followed up individually.
Operating revenues for the first quarter were NOK 819.9 million (NOK 678.6 million). They derived from 42 projects currently in production, and land sales totalling NOK 11.3 million.
Operating costs, primarily for construction and sales, directly related to the projects amounted to NOK 648.3 million (NOK
Other business – unallocated
The other business segment comprises a number of activities in the group which are not regarded as part of the core business on a stand-alone basis. It also includes administration and management which cannot be attributed directly to the projects and are accordingly not allocated to the housing development segment.
Operating revenues for the first quarter came to NOK 7.1 million (NOK 9.6 million).
532.4 million) for the first quarter. Construction costs in the segment reporting are exclusive of directly-related financial expenses (interest on construction loans). This differs from the IFRS accounts, where financial expenses are included in project costs on delivery.
EBITDA presents operating profit (loss) before depreciation, gain (loss), and share of profit (loss) from associates. It came to NOK 171.6 million (NOK 146.2 million) for the quarter, corresponding to a profit margin of 20.9 per cent (21.5 per cent).
Total operating costs for the segment amounted to NOK 38.5 million (NOK 32 million) for the first quarter. These are largely attributable to management and administration as well as to marketing.
EBITDA was negative at NOK 31.3 million (NOK 22.5 million) for the segment.
The pace of sales was high during the quarter, and substantially stronger than in the corresponding period of 2014. Positive progress seen for sales during the third and fourth quarters of last year was maintained in the first quarter. The housing market was particularly strong in Greater Oslo, where the group has 65 per cent of its
The company has projects in Oslo, Lørenskog, Moss, Oppegård, Stavanger, Sandnes, Sola, Tønsberg, Trondheim, residential building projects. Activity in the group was at a high level, and construction started on 284 units during the period. To manifest value creation in the company, segment reporting shows revenue and costs in the various projects on the assumption that the company had used the percentage of completion method as its accounting principle.
Bergen, Tromsø and Stockholm. However, no projects were under construction in Stockholm during the first quarter.
| Q1 14 | Q2 14 | Q3 14 | Q4 14 | Q1 15 | |
|---|---|---|---|---|---|
| Number of units sold | 139 | 255 | 259 | 233 | 308 |
| Number of construction starts | 77 | 197 | 203 | 280 | 284 |
| Number of units completed | 77 | 253 | 274 | 319 | 208 |
| Number of units delivered | 80 | 236 | 279 | 266 | 224 |
| Number of units under construction | 1 474 | 1 418 | 1 347 | 1 308 | 1 384 |
| Proportion of sold units under construction | 76% | 76% | 76% | 77% | 81% |
| Number of completed unsold units | 8 | 17 | 18 | 39 | 40 |
| Sales value of units under construction (NOK million) | 5 547 | 5 238 | 5 159 | 4 689 | 4 968 |
Three sites were purchased during the quarter. One of these is located at Fornebu/Lysaker, while the other two are in Oslo – at Løren and Sinsen respectively. The purchase at Sinsen is a joint venture with Veidekke with 50 per cent ownership share each. In the fourth quarter last year the company announced the purchase of site central in Oslo. This is located at Valle Hovin. The purchase is subject to ESA (EFTA Surveillance Agency) approval of the transfer of ownership from the City of Oslo to Vålerenga Fotball.
Selvaag Bolig sold 308 residential units (139) during the first quarter. These sales comprise Selvaag Bolig's consolidated project companies as well as its relative share of units sold in part-owned projects. Sales of new units rose throughout 2014, and the first quarter of 2015 was the best in the company's history in terms of units sold.
Units sold
6
The 308 units sold during the first quarter broke down into 194 in Greater Oslo and 114 in the rest of Norway.
The combined value of the 308 units sold during the quarter was NOK 1 021 million. Sales during the same period of 2014 totalled 139 units with a value of NOK 483 million.
Value of units sold (NOK mill)
Selvaag Bolig started sales during the quarter in seven projects comprising a total of 177 residential units (154).
| Project | # of units Category | Region | |
|---|---|---|---|
| Aase Gård | 12 | Terraced | Rogaland |
| Jaasund | 7 | Terraced | Rogaland |
| Strandkanten II | 32 | Flat | Tromsø |
| Kornmoenga | 27 | Flat | Greater Oslo |
| Løren 5 | 48 | Flat | Greater Oslo |
| Skaarerødegaarden | 16 | Flat | Greater Oslo |
| Økern Torgvei 30 | 35 | Flat | Greater Oslo |
| Total | 177 | ||
Construction began on 284 (77) units during the first quarter. Construction starts can vary substantially from quarter to quarter, since construction only begins when 60 per cent of a project, measured by sales value, has been sold.
| Project | # units | Category | Region |
|---|---|---|---|
| Jaasund | 7 | Terraced | Rogaland |
| Strandkanten II | 32 | Flat | Tromsø |
| Moss | 15 | Flat | Greater Oslo |
| Skaarerødegaarden | 51 | Flat | Greater Oslo |
| Vestparken | 66 | Flat | Greater Oslo |
| Økern Torgvei 30 | 113 | Flat | Greater Oslo |
| Total | 284 | ||
At 31 March, Selvaag Bolig had 1 384 (1 474) units under construction, up by 76 from 31 December and down by 90 from the same date in 2014. They included 901 units in Greater Oslo and 483 in the rest of Norway.
The order backlog at 31 March – in other words, the sales value of the 1 384 units under construction – was NOK 4 968 million (NOK 5 547 million).
A total of 208 (77) units were completed in the first quarter, and 224 (80) – including ones completed earlier – were delivered. The completed units were divided between eight projects – Aase Gård, Bo Emmaus, Bjørnåsen Nord, Kaldnes Boligutvikling, Kornmoenga, Løren 5, Skårerødegården and Vestparken. A total of 40 (eight) completed units were unsold at 31 March. Consolidated project companies accounted for 194 (79) of the units delivered and a joint venture project company for 30 (one).
| Project | # units | Category | Region |
|---|---|---|---|
| Aase Gård | 12 | Flat | Rogaland |
| Aase Gård | 8 | Terraced | Rogaland |
| Bo emmaus | 9 | Terraced | Rogaland |
| Bjørnåsen Nord | 38 | Terraced | Greater Oslo |
| Kaldnes Boligutvikling | 32 | Flat | Greater Oslo |
| Kornmoenga | 9 | Terraced | Greater Oslo |
| Løren 5 | 34 | Flat | Greater Oslo |
| Skaarerødegaarden | 18 | Terraced | Greater Oslo |
| Vestparken | 48 | Flat | Greater Oslo |
| Total | 208 |
Units completed by project
Based on deliveries in the first quarter and estimated completions for the rest of the year, deliveries for 2015 are expected to total about 850 units. Only wholly-owned projects are expected to be completed up to 30 June 2016.
The company had 93.76 million issued shares at 31 March, divided between 1 914 shareholders.
The 20 largest shareholders controlled 83.7 per cent of the total number of issued shares. The largest shareholder was Selvaag Gruppen, with a 53.5 per cent holding.
| Shareholder | # of shares % share | |
|---|---|---|
| SELVAAG GRUPPEN AS | 50 180 087 | 53.5% |
| SKANDINAVISKA ENSKILDA BANKEN AB | 5 545 194 | 5.9% |
| MP PENSJON PK | 2 538 889 | 2.7% |
| PARETO AS | 2 065 624 | 2.2% |
| MORGAN STANLEY & CO. INTERNATIONAL | 1 635 042 | 1.7% |
| US BK EVERMORE GLO VAL FUND | 1 520 000 | 1.6% |
| J.P. MORGAN CHASE BANK N.A. LONDON | 1 442 874 | 1.5% |
| STOREBRAND NORGE I | 1 353 079 | 1.4% |
| UTHALDEN A/S | 1 289 613 | 1.4% |
| DELPHI KOMBINASJON | 1 263 502 | 1.3% |
| THE BANK OF NEW YORK MELLON | 1 230 001 | 1.3% |
| HOLTA INVEST AS | 1 200 000 | 1.3% |
| VERDIPAPIRFONDET DELPHI NORDEN | 1 092 134 | 1.2% |
| J.P. MORGAN CHASE BANK N.A. LONDON | 1 049 431 | 1.1% |
| STOREBRAND VERDI | 1 011 389 | 1.1% |
| HOLBERG NORDEN | 1 000 000 | 1.1% |
| HOLBERG NORGE | 896 569 | 1.0% |
| DELPHI NORGE | 754 336 | 0.8% |
| VERDIPAPIRFONDET OMEGA INVESTMENT | 729 000 | 0.8% |
| FIDELITY SELECT PORTFOLIOS: FIDELI | 724 200 | 0.8% |
| Total 20 largest shareholders | 78 520 964 | 83.7% |
| Other shareholders | 15 244 724 | 16.3% |
| Total number of shares | 93 765 688 | 100.0% |
As a housing developer, Selvaag Bolig is exposed to risks which could affect the group's business and financial position. Risk factors relate to land development, sales, and the execution of housing projects, and can be divided into market, operational and financial categories. The group gives priority to work on managing and dealing with risk, and has established routines and control systems to limit and control risk exposure.
Macro-economic conditions, particularly unemployment and interest rates as well as demographic changes, are factors expected to affect the group in a longer perspective. See the company's half-year and annual reports, available on its website, for a more detailed explanation of the risk and uncertainty factors it faces.
Selvaag Bolig had no significant transactions with related parties during the quarter. See note 23 to the consolidated financial statements for 2014 for detailed information on transactions with related parties in earlier years.
House prices continued to rise during the first quarter. According to Statistics Norway (SSB), Norwegian house prices at 31 March were 1.6 per cent higher on average than in 31 December 2014 and up by 7.2 per cent from 31 March 2014.
Price developments were positive in all Selvaag Bolig's core areas, apart from Rogaland county. Prices rose by 3.1 per cent in Oslo and Bærum during the quarter, and were 11.9 per cent higher than at 31 March 2014. In Akershus not including Bærum, prices were up by 3.4 per cent and 8.6 per cent higher than in 31 March 2014. Prices in Stavanger declined by 0.9 per cent and were up two per cent from the end of 2014. They increased by 1.2 per cent in Bergen and were unchanged in Trondheim during the quarter, and were 8.5 and 6.5 per cent higher respectively than the year before. According to Eiendomsverdi, the housing market is characterised by a high level of demand. The volume of sales was high during the quarter, while the stock of unsold second-hand homes was very low in all Selvaag Bolig's markets with the exception of Rogaland.
Selvaag Bolig' sales of new homes during the quarter were the best ever for the company, with 308 units sold compared with 139 in the corresponding period of 2014.
| (figures in NOK 1 000, except earnings per share) | Q1 2015 | Q1 2014 | 2014 |
|---|---|---|---|
| Revenues | 740 751 | 226 696 | 2 887 604 |
| Other revenues | 14 876 | 17 885 | 57 642 |
| Total operating revenues | 755 627 | 244 581 | 2 945 246 |
| Project expenses | (609 485) | (193 070) | (2 371 797) |
| Salaries and personnel costs | (23 455) | (16 503) | (82 868) |
| Depreciation and amortisation | (5 808) | (5 218) | (21 205) |
| Other operating expenses | (30 990) | (24 796) | (132 586) |
| Other gains (losses), net | - | - | (3 482) |
| Associated companies and joint ventures | 6 923 | (1 207) | 32 404 |
| Total operating expenses | (662 815) | (240 794) | (2 579 534) |
| Operating profit | 92 812 | 3 787 | 365 712 |
| Financial income | 452 | 2 208 | 21 215 |
| Financial expenses | (8 412) | (8 517) | (38 221) |
| Net financial expenses | (7 960) | (6 309) | (17 006) |
| Profit/(loss) before taxes | 84 852 | (2 522) | 348 706 |
| Income taxes | (22 995) | 651 | (94 175) |
| Net income | 61 857 | (1 871) | 254 531 |
| Other comprehensive income/expenses | |||
| Translation differences | 5 | (3) | (182) |
| Total comprehensive income/(loss) for the period | 61 862 | -1 874 | 254 349 |
| Net income for the period attributable to: | |||
| Non-controlling interests | (36) | 1 117 | 1 169 |
| Shareholders in Selvaag Bolig ASA | 61 893 | (2 988) | 253 362 |
| Total comprehensive income/(loss) for the period attributable to: | |||
| Non-controlling interests | (36) | 1 117 | 1 169 |
| Shareholders in Selvaag Bolig ASA | 61 898 | (2 991) | 253 180 |
| Earnings per share for net income/(loss) attributed to shareholders | |||
| in Selvaag Bolig ASA: | |||
| Earnings per share (basic and diluted) in NOK | 0.66 | (0.03) | 2.70 |
The consolidated financial information has not been audited
| (figures in NOK 1 000) | Note | Q1 2015 | Q1 2014 | 2014 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 383 376 | 383 376 | 383 376 | |
| Other intangible assets | 27 599 | 46 379 | 32 199 | |
| Property, plant and equipment | 17 330 | 4 411 | 17 395 | |
| Investments in associated companies and joint ventures | 200 191 | 152 073 | 156 723 | |
| Loans to associated companies and joint ventures | 17 812 | 13 869 | 17 679 | |
| Other non-current assets | 105 142 | 156 810 | 104 116 | |
| Total non-current assets | 751 450 | 756 918 | 711 488 | |
| Current assets | ||||
| Inventories (property) | 5 | 4 563 146 | 4 661 349 | 4 348 805 |
| Trade receivables | 245 673 | 196 744 | 440 283 | |
| Other current receivables | 104 643 | 247 358 | 147 738 | |
| Cash and cash equivalents | 663 262 | 586 601 | 565 930 | |
| Total current assets | 5 576 724 | 5 692 052 | 5 502 756 | |
| TOTAL ASSETS | 6 328 174 | 6 448 970 | 6 214 244 | |
| EQUITY AND LIABILITIES | ||||
| Equity attributed to shareholders in Selvaag Bolig ASA | 2 504 468 | 2 233 276 | 2 442 570 | |
| Non-controlling interests | 14 692 | 23 835 | 14 728 | |
| Total equity | 2 519 160 | 2 257 111 | 2 457 298 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Pension liabilities | 2 187 | 1 183 | 2 187 | |
| Deferred tax liabilities | 205 457 | 153 446 | 190 246 | |
| Provisions | 92 578 | 92 578 | 92 578 | |
| Other non-current non interest-bearing liabilities | 8 117 | 17 892 | 8 627 | |
| Non-current interest-bearing liabilities | 1 685 564 | 2 330 703 | 1 752 401 | |
| Total non-current liabilities | 1 993 903 | 2 595 802 | 2 046 039 | |
| Current liabilities | ||||
| Current interest-bearing liabilities | 1 075 445 | 887 019 | 959 518 | |
| Trade payables | 132 645 | 65 639 | 187 348 | |
| Current tax payables | 64 380 | 1 793 | 56 500 | |
| Other current non interest-bearing liabilities | 542 641 | 641 606 | 507 541 | |
| Total current liabilities | 1 815 111 | 1 596 057 | 1 710 907 | |
| Total liabilities | 3 809 014 | 4 191 859 | 3 756 946 | |
| TOTAL EQUITY AND LIABILITIES | 6 328 174 | 6 448 970 | 6 214 244 |
The consolidated financial information has not been audited
| Share | Share premium |
Other paid-in |
Cumulative translation |
Other | Retained | Equity attributed to shareholders in |
Non controlling |
Total | |
|---|---|---|---|---|---|---|---|---|---|
| capital | account | capital | differences | reserves | earnings | Selvaag Bolig ASA | interests | equity | |
| EQUITY AS OF 1 JANUARY 2015 | 187 511 | 1 394 857 | 700 629 | 897 | 3 528 | 155 147 | 2 442 569 | 14 728 *) | 2 457 298 |
| Total comprehensive income/(loss) for the period: | |||||||||
| Net income/(loss) for the period | - | - | - | - | - | 61 893 | 61 893 | (36) | 61 857 |
| Other comprehensive income/(loss) for the period | - | - | - | 5 | - | - | 5 | - | 5 |
| EQUITY AS OF 31 MARCH 2015 | 187 511 | 1 394 857 | 700 629 | 902 | 3 528 | 217 040 | 2 504 467 | 14 692 *) | 2 519 160 |
| EQUITY AS OF 1 JANUARY 2014 | 187 511 | 1 394 857 | 700 629 | 1 079 | 3 528 | (51 337) | 2 236 267 | 22 718 *) | 2 258 985 |
| Total comprehensive income/(loss) for the period: | |||||||||
| Net income/(loss) for the period | - | - | - | - | - | (2 988) | (2 988) | 1 117 | (1 871) |
| Other comprehensive income/(loss) for the period | |||||||||
| EQUITY AS OF 31 MARCH 2014 | 187 511 | 1 394 857 | 700 629 | 1 076 | 3 528 | (54 325) | 2 233 276 | 23 835 | 2 257 111 |
| Transaction with the owners: | |||||||||
| Dividend | - - | - | - | - | (46 878) | (46 878) | - | (46 878) | |
| Profit sharing to external guarantor | - - | - | - | - | - | - | (159) | (159) | |
| Dividend to non-controlling interests | - - | - | - | - | - | - | (9 000) | (9 000) | |
| Total comprehensive income/(loss) for the rest of the year: |
|||||||||
| Net income/(loss) for the period | - - | - | - | - | - | - | - | - | |
| Other comprehensive income/(loss) for the period | - - | - | - | - | 256 350 | 256 350 | 52 | 256 402 | |
| EQUITY AS OF 31 DECEMBER 2014 | 187 511 | 1 394 857 | 700 629 | 897 | 3 528 | 155 147 | 2 442 569 | 14 728 | 2 457 298 |
The consolidated financial information has not been audited
*) Non-controlling interests includes tax from profits in companies subject to partnership taxation. Income taxes in the Group does not include taxes from tax subjects outside the Selvaag Bolig Group.
| (figures in NOK 1 000) | Q1 2015 | Q1 2014 | 2014 |
|---|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | |||
| Profit/(loss) before taxes | 84 852 | (2 522) | 348 706 |
| Income taxes paid | - | (462) | (970) |
| Depreciation and amortisation | 5 808 | 5 218 | 21 205 |
| Other gains (losses), net | - | - | 3 482 |
| Share of profits/(losses) from associated companies and joint ventures | (6 923) | 1 207 | (32 404) |
| Changes in inventories (property) | (201 648) | (361 329) | 27 670 |
| Changes in trade receivables | 194 610 | (89 729) | (332 454) |
| Changes in trade payables | (54 703) | (49 518) | 71 332 |
| Changes in other operating working capital assets | 41 993 | (13 134) | 120 637 |
| Changes in other operating working capital liabilities | 33 725 | 96 566 | (39 953) |
| Net cash flow from operating activities | 97 714 | (413 703) | 187 251 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | |||
| Purchases of PPE and intangible assets | (1 200) | - | (14 557) |
| Purchases of businesses and subsidiaries, net of cash acquired | - | - | 2 184 |
| Purchases of associated companies and joint ventures | (36 545) | (8 250) | (38 928) |
| Dividends and disbursements from associated companies and joint | |||
| ventures | - | 5 675 | 45 623 |
| Net cash flow from investment activities | (37 745) | (2 575) | (5 678) |
| CASH FLOW FROM FINANCING ACTIVITIES | |||
| Proceeds from borrowings | 425 016 | 433 945 | 1 358 726 |
| Repayments of borrowings | (332 635) | (18 108) | (1 560 391) |
| Net change in bank overdrafts | (55 017) | - | 55 017 |
| Dividends paid to equity holders of Selvaag Bolig ASA | - | - | (46 878) |
| Payment of profit sharing and dividends to non-controlling interests in | |||
| subsidiaries | - | - | (9 159) |
| Net cash flow from financing activities | 37 363 | 415 837 | (202 685) |
| Net change in cash and cash equivalents | 97 332 | (441) | (21 112) |
| Cash and cash equivalents at start of period | 565 930 | 587 042 | 587 042 |
| Cash and cash equivalents at end of period | 663 262 | 586 601 | 565 930 |
The consolidated financial information has not been audited
Selvaag Bolig ASA (the "Company") and its subsidiaries (together "the Group") is a property development group, involved in the construction of residential property for sale in the ordinary course of business. The condensed consolidated interim financial information consists of the Group and the Group's interest in associated companies and jointly controlled entities.
The Group's consolidated financial information have been prepared in accordance with IAS 34 Interim Financial Reporting. The report does not include all the information and disclosures required for annual financial statements and should be read in conjunction with the Group's consolidated financial statements for 2014.
The accounting policies applied in preparing these interim condensed consolidated financial statements are consistent with those applied in the Group's consolidated financial statements for the year ended 31 December 2014.
Group management has not yet evaluated the impact of implementing new, revised and amended standards with a later date of adoption.
The preparation of interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting principles and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
In preparing this consolidated interim financial information, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were largely the same as those that applied in the consolidated financial statements for the year ended 31 December 2014.
See note 23 in the Group's Consolidated Financial Statements for 2014 for detailed information on related party transactions in previous years.
The main segment is defined as Property development. In addition the Other segment consists of Services and Estate Agent, as well as unallocated revenues and costs.
The group utilises the percentage of completion method in its internal reporting for which the degree of completion is estimated based on expenses incurred relative to total estimated costs and sales rate. Operating profit (loss) under the percentage of completion method also includes an estimated profit element. The group consolidated income statement is based on the completed contract method, in which revenue is recognised at the time of transfer of risk and control, being the point of delivery of the property. A reconciliation of this effect (from stage of completion to completed contract) can be found in the segment reporting under "Reconciliation EBITDA to operating profit (loss)".
Group management considers segment results based on the percentage of completion method for determining EBITDA. The method of measurement is defined as operating profit (loss) before "Depreciation and amortisation", "Other gain (loss), net", and "Share of income (losses) from disposals from associated companies and joint ventures". Financial income and expenses are not allocated to operating segments since this type of activity is managed by a central finance function focused on managing the Group's liquidity.
First quarter 2015
| Property | |||
|---|---|---|---|
| (figures in NOK 1 000) | development | Other | Total |
| Operating revenues | 819 935 | 7 128 | 827 063 |
| Project expenses | (631 046) | (1 289) | (632 335) |
| Other operating expenses | (17 284) | (37 161) | (54 445) |
| EBITDA (percentage of completion) | 171 605 | (31 322) | 140 283 |
| Reconciliation EBITDA to operating profit (loss): | |||
| EBITDA (percentage of completion) | 171 605 | (31 322) | 140 283 |
| Sales revenues (adjustment effect of percentage of completion) | (792 960) | - | (792 960) |
| Sales revenues (completed contract) | 723 200 | - | 723 200 |
| Project expenses (adjustment effect of percentage of completion) | 616 497 | - | 616 497 |
| Project expenses (completed contract) | (595 323) | - | (595 323) |
| Depreciation and amortisation | - | (5 808) | (5 808) |
| Share of income (losses) from associated companies and joint | |||
| ventures | 6 923 | - | 6 923 |
| Other gain (loss), net | - | - | - |
| Operating profit (loss) | 129 942 | (37 130) | 92 812 |
| Units under construction | 1 384 | N/A | N/A |
| Units delivered | 224 | N/A | N/A |
| First quarter 2014 | |||
| Property | |||
| (figures in NOK 1 000) | development | Other | Total |
| Operating revenues | 678 637 | 9 567 | 688 204 |
| Project expenses | (522 391) | (643) | (523 034) |
| Other operating expenses | (10 004) | (31 404) | (41 408) |
| EBITDA (percentage of completion) | 146 242 | (22 480) | 123 762 |
| Reconciliation EBITDA to operating profit (loss): | - | - | - |
| EBITDA (percentage of completion) | 146 242 | (22 480) | 123 762 |
| Sales revenues (adjustment effect of percentage of completion) | (668 167) | - | (668 167) |
| Sales revenues (completed contract) | 224 544 | - | 224 544 |
| Project expenses (adjustment effect of percentage of completion) | 520 992 | - | 520 992 |
| Project expenses (completed contract) | (190 920) | - | (190 920) |
| Depreciation and amortisation | - | (5 218) | (5 218) |
| Share of income (losses) from associated companies and joint | |||
| ventures | (1 207) | - | (1 207) |
| Other gain (loss), net | - | - | - |
| Operating profit (loss) | 31 485 | (27 698) | 3 787 |
| Units under construction | 1 474 | N/A | N/A |
| Units delivered | 80 | N/A | N/A |
The Group has property that is land and buildings intended for sale in the ordinary course of business or which is in the process of construction or development for such sale. Inventories thus comprise land, property held for resale,
and property under development and construction. Inventories are measured at the lower of cost and net realisable value.
| (figures in NOK 1 000) | Q1 2015 | Q1 2014 | 2014 |
|---|---|---|---|
| Land (undeveloped) | 1 845 117 | 1 720 721 | 1 614 382 |
| Work in progress | 2 358 827 | 2 841 241 | 2 360 274 |
| Finished projects | 359 202 | 99 387 | 374 149 |
| Carrying amount | 4 563 146 | 4 661 349 | 4 348 805 |
The Group expenses all directly attributable costs in construction projects as project expenses. This includes financial expenses. Below is a specification showing the
project cost and EBITDA including and excluding financial expenses.
| (figures in NOK 1 000) | Q1 2015 | Q1 2014 | 2014 |
|---|---|---|---|
| Project expenses | (609 485) | (193 070) | (2 371 797) |
| Finance expenses | (22 119) | (7 657) | (101 676) |
| Other project expenses | (587 366) | (185 413) | (2 270 121) |
| (figures in NOK 1 000) | Q1 2015 | Q1 2014 | 2014 |
| EBITDA | 98 620 | 9 005 | 386 917 |
| EBITDA-margin | 13.1% | 3.7% | 13.1% |
| EBITDA excl. financial expenses | 120 739 | 16 662 | 488 593 |
|---|---|---|---|
| EBITDA-margin excl. financial expenses | 16.0% | 6.8% | 16.6% |
Baard Schumann, CEO Selvaag Bolig ASA Telephone: +47 940 80 000, e-mail: [email protected]
Sverre Molvik, CFO Selvaag Bolig ASA Telephone: +47 401 00 585, e-mail: [email protected]
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
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