Selvaag Bolig ASA

Investor Presentation • Feb 27, 2015

Oslo 27 February 2014 Baard Schumann, CEO Sverre Molvik, CFO

Agenda

• ! Highlights
• ! Operational update
• ! Financial update
• ! Outlook and summary

Highlights Q4 2014

HIGHLIGHTS

• ! Strong market: high demand and low supply
• ! Solid sales development
• ! High construction activity
• ! NOK 709 million in added value for the land bank based on external valuation
• ! Proposed dividend of NOK 1.2 per share for fiscal 2014 (0.5)

Løren, Oslo

Q4 2014 Full year 2014

Financial highlights HIGHLIGHTS

Operating revenues

1 126 million NOK

Equity ratio

39.5 per cent

EBITDA margin

16.2

per cent

EBITDA margin (NGAAP)

15.0 per cent

Operating revenues

2 945

million NOK

Units under construction

1 308

Agenda

• ! Highlights
• ! Operational update
• ! Financial update
• ! Outlook and summary

Solid sales development OPERATIONAL UPDATE

Total sales value and value per sold unit Residential units sold

Note: All numbers are adjusted for Selvaag Bolig's ownership in joint ventures. * Includes 95 student residences with an average value of NOK 0.7 million (dotted area)

Sales update YTD 2015

• ! Very strong housing market
• ! Particularly good sales in Greater-Oslo
• ! 201 units sold so far in Q1 2015 (139 units sold in Q1 2014)

OPERATIONAL UPDATE

Nybyen Økern, Oslo

Nybyen Økern – project efficiency

OPERATIONAL UPDATE

• ! Land acquired in January 2014
• ! Sales start in October 2014
• ! 60 percent of construction stage 1 (house A and B) sold by January 2015
• ! Settlement 1 April 2015

Sales development Nybyen Økern, stage 1

Nybyen Økern, Oslo Oct '14

Strong trend for construction starts

Construction starts per quarter

Production activity at a solid level

! Sales value of units under construction

! 64% of production volume in Greater Oslo

• NOK 4 689 million
• ! 77% of the units are sold

OPERATIONAL UPDATE

Note: Projects are included when construction is decided. All numbers are adjusted for Selvaag Bolig's ownership share in joint ventures. Selvaag Bolig currently has 1 340 residential units under construction including joint venture projects.

Development units under construction

Production split

Units NOK million 1 474 1 474 1 418 1 347 1 308 5 421 5 547 5 238 5 159 4 689 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Number of units under construction Sales value (NOK million)

2012 2013 2014

Selvaag Bolig competitively positioned

OPERATIONAL UPDATE

Units under construction vs. peers (net figures)

No of units

Expected deliveries per quarter

1 010 units for delivery next five quarters

• ! 85% of completions in 2015 were sold by year end 2014
• ! Net changes in expected deliveries since the previous quarter
• ! Q1 2015: +37
• ! Q2 2015: -43
• ! Q3 2015: -32
• ! Q4 2015: +29

Acquisitions

OPERATIONAL UPDATE

Two new projects

• ! Project in central Oslo
• ! Approximately 350 apartments
• ! NOK 225 million
• ! Transaction completed in Q4 2014
• ! Project in Stockholm, Sweden 50/50 JV with Veidekke
• ! Approximately 130 apartments in total
• ! NOK 300 million in total
• ! Transaction completed in Q4 2014

Svea Fanfar, Stockholm

Post-quarter: Acquisitions in Q1 2015

OPERATIONAL UPDATE

Two new projects

• ! Project at Lørenvangen 22 in Oslo
• ! Approximately 200 apartments
• ! NOK 137 million
• ! Completion of transaction in Q1 2015
• ! Sinsenveien 45-49 in Oslo 50/50 JV with Veidekke
• ! Approximately 400 apartments in total
• ! NOK 375 million in total
• ! Completion of transaction in Q1 2015

Lørenvangen, Oslo

Sinsenveien, Oslo

Disposals OPERATIONAL UPDATE

One sale

• ! Sale of commercial property in Tønsberg
• ! Accounting revenue NOK 18.6 million
• ! Minor accounting gain
• ! Completion of transaction in Q4 2014

Kaldnes, Tønsberg

Agenda

• ! Highlights
• ! Operational update
• ! Financial update
• ! Outlook and summary

Income statement highlights Q4 2014 (IFRS)

• ! Delivery of 266 units (118)
• ! Revenues NOK 1 126 million (376)
• ! Of which other revenues NOK 15 million (13)
• ! Project costs NOK 865 million (316)
• ! Of which NOK 39 million are interests
• ! Other costs NOK 79 million (58)
• ! Mainly due to increase in sales and marketing
• ! EBITDA adjusted 222 million (8)
• ! Adjusted for financial expenses included in project costs
• ! EBITDA NOK 182 million (2)
• ! Earnings per share NOK 1.38

FINANCIAL UPDATE

Revenues and EBITDA margin (IFRS)

!	Delivery of 861 units (687)
!	Revenues NOK 2 945 million (2 197 )	NOKm
!	EBITDA adjusted 489 million (348)
	Adjusted for financial expenses included in project ! costs		2 197
!	EBITDA NOK 387 million (289)
!	Earnings per share full year NOK 2.70
!	Proposed dividend NOK 1.2 per share

FINANCIAL UPDATE

Revenue and EBITDA margin (IFRS)

Income statement highlights FY 2014 (IFRS)

Income statement highlights Q4 2014 (NGAAP)

FINANCIAL UPDATE

* Construction costs are exclusive of financial expenses in the segment reporting (NGAAP)

Cash flow development Q4 2014

FINANCIAL UPDATE

• ! Positive cash flow from operating activities
• ! Changes in inventory and trade receivables a result of delivered units
• ! Net change in borrowings a result of down payments on construction loans

Condensed cash flow

Assets Equity and Liabilities

Balance sheet highlights Q4 2014

	Balance sheet composition
Book value per share NOK 26.0 !	NOKm
NOK 24.7 in Q3 2014 !
Changes since Q3 2014: !	Non-current 7 000 assets
	6 000
Trade receivables increased by NOK 277 ! million	5 000
Inventories reduced by NOK 201 million	4 000
!	Current 3 000 assets
Net reduction of NOK 311 million in ! interest-bearing liabilities	2 000
	1 000
Prepayments from customers count !	Cash 0
for NOK 263 million of other current non interest-bearing liabilities

FINANCIAL UPDATE

Inventories (property) Q4 2014

Land (undeveloped) Work in progress Finished projects

FINANCIAL UPDATE

Sound debt structure

FINANCIAL UPDATE

Drawn per 31 Dec (NOKm)	Interest rate margin
500	4.75%
0	2.50%
55	2.00%
931	2.20% - 2.50%
1 234	1.90% - 2.50%

Interest bearing debt as at 31 Dec 2014

Note: Top-up loan of NOK 555m in the table differs form the summed up top up loan in the pie chart (NOK 547m). The difference is due to NOK -8m in amortized cost which is not actual debt.

In compliance with financial covenants

Sales ratio covenant (minimum 60.0%)

Equity ratio covenant (minimum 25.0%)

Changes in covenants from Q4 2014:

• ! Sales ratio covenant reduced to 60.0%
• ! Actual ratio in Q4 2014: 77%
• ! Equity ratio covenant increased to 25.0 % until end of June 2017
• ! Increasing to 27.5% until maturity in June 2018
• ! Actual ratio in Q4 2014: 40%

Agenda

• ! Highlights
• ! Operational update
• ! Financial update
• ! Outlook and summary

Optimal geographic spread

• ! Ideal land bank spread in current market situation
• ! Strongly skewed towards the fast growing Greater-Oslo area

COMPANY OUTLOOK

2) 155 units at Tromsø (Troms county) and 100 units at Alfaz Del Sol (Spain), 3) The residential property development portfolio consists of land plots that are to be paid for when planning permission is received. These have a development potential of ~3 650 residential units, whereof the company has purchasing obligations for ~3 100 and purchasing options for ~550 units.

Source: Eiendomsverdi

MARKET OUTLOOK Oslo and Akershus, January 2007-2015 Rogaland, January 2007-2015 Second-hand market: Strong market in Oslo, challenging in Rogaland

Selected areas: Oslo, Lørenskog, Ski ,Oppgård, Bærum, Asker Selected areas: Stavanger, Sola, Randaberg, Sandnes

Source: Eiendomsverdi

MARKET OUTLOOK Second-hand market: High turnover in both markets

Selected areas: Bergen, Fjell og Askøy

29

COMPANY OUTLOOK

Strong position

Sales activity vs. peers (net figures)

* Selected markets: Oslo, Akershus, Hordaland, Rogaland, Troms and Sør-Trønderlag Housing types Selvaag Bolig: flats, semi-detached and terraced homes

Source: Selvaag Bolig and Eiendomsverdi

2012 2013 2014

Positive outlook for Selvaag Bolig

COMPANY OUTLOOK

Vestparken Lørenskog, Oslo

• ! Well positioned in core markets
• ! Increased land bank in attractive Greater-Oslo area
• ! Competitive housing prises for broad consumer groups
• ! Macro indicators are positive
• ! Strong housing demand and low market inventory
• ! Strong urbanisation and low interest rates

Summary

• ! Solid sales development, especially in Greater-Oslo area
• ! High construction activity
• ! Strong market sentiment
• ! Proposed dividend of NOK 1.2 per share for 2014

Lade Allé, Oslo

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Next event: Annual general meeting 29 April 2015

Appendix

Norwegian housing market

• ! Good demand for new homes and persistent population growth in urban areas
• ! 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 10% minimum cash deposit
• ! High level of home ownership
• ! 85% (one of the world's highest)
• ! Economic benefits for home owners
• ! 27% of mortgage loan interest payments are tax-deductible
• ! Transfer stamp duty for new houses is lower than for second hand homes
• ! Attractive market outlook
• ! Strong population growth
• ! High level of purchasing power
• ! Favourable macro-economic climate and low interest rates

Source: Source Selvaag Bolig and Eurostat

Selvaag Bolig – value proposition

Selvaag Bolig ASA is a Norwegian residential property developer with no in-house construction arm, which controls the entire value chain from the acquisition of land to the sale of homes.

• ! Proven low-cost strategy
• ! Very competitive prices ensure a broad customer base
• ! No in-house construction arm
• ! low building costs
• ! fixed construction price
• ! reduced risk
• ! smaller exposure to market fluctuations
• ! Defined housing concepts
• ! Aimed at broad consumer categories
• ! Profit maximisation in all projects
• ! Large land bank
• ! Several thousand homes under development in Norway's four fastest growing urban regions

	Construction start								Scheduled completion
	Q4 2014	Q1 2015	Q2 2015	Q3 2015	Q4 2015	Q1 2016	Q2 2016	Q3 2016	Q4 2016
Lade Allé	42 Apartments					NOK 148m			Note: all figures in NOKm are expected revenue
Strandkanten	48 Apartments					NOK 139m			Modular Onsite
Løren 5	82 Apartments					NOK 289m
Løren 5	72 Apartments					NOK 232m
Kornmoenga	36 Apartments					NOK 127m

Total units: 280

Construction starts in the quarter

	Note: all figures in NOKm are expected revenue

4.7	1.2	21.4
1.6	253.2	164.1

Income statement IFRS

(figures in NOK million)	Q4 2014	Q4 2013	2014	2013
Total operating revenues	1 126.5	375.6	2 945.2	2 197.0
Project expenses	(864.6)	(316.1)	(2 371.8)	(1 709.6)
Other operating expenses	(80.4)	(57.7)	(215.5)	(208.8)
Other gains (loss)	(3.5)	(0.5)	(3.5)	(0.4)
Associated companies and joint ventures	4.4	0.4	32.4	10.9
EBITDA	182.4	1.6	386.9	289.1
Depreciation and amortisation	(5.7)	(5.3)	(21.2)	(22.1)
EBIT	176.7	(3.7)	365.7	267.0
Net financial expenses	(0.3)	(2.8)	(17.0)	(30.0)
Profit/(loss) before taxes	176.4	(6.6)	348.7	237.0
Income taxes	(47.5)	12.9	(94.2)	(51.4)
Net income	128.9	6.3	254.5	185.6

Net income for the period attributable to:

Non-controlling interests	(0.0)	4.7	1.2	21.4
Shareholders in Selvaag Bolig ASA	128.8	1.6	253.2	164.1

Cash Flow statement

(figures in NOK million)	Q4 2014	Q4 2013	2014	2013
Net cash flow from operating activities	171.1	(152.9)	187.3	104.0
Net cash flow from investment activities	(35.9)	(2.6)	(5.7)	48.8
Net cash flow from financing activities	(346.3)	189.5	(202.7)	(123.7)
Net change in cash and cash equivalents	(211.0)	34.1	(21.1)	29.1
Cash and cash equivalents at start of period	777.0	552.9	587.0	558.0
Cash and cash equivalents at end of period	565.9	587.0	565.9	587.0

.014	Q3 2014	2013
15.6	420.3	434.5
17.4	7.9	4.9
56.7	144.0	150.7
21.8	125.5	166.6
11.5	697.7	756.7
48.8	4 550.1	4 283.9
14.4	1 673.4	1753.4
60.3	2 740.6	2 3 9 8.8
74.1	136.0	131.6
88.0	291.9	342.3
65.9	777.0	587.0
02.8	5618.9	5 213.2
14.2	6316.6	5 969.8
42.6	2 3 1 3 .8	2 2 3 6 . 3
14.7	23.9	22.7
57.3	2 337.7	2 259.0
62.4	2 2 9 5 .0	2 1 1 6 .2
3.6	302.9	258.1
16.0	2 598.0	2 3 7 4 . 3
9.5	728.1	669.0
1.4	652.8	667.5
0.9	1 380.9	1 336.6
14.2	6316.6	5969.8

(figures in NOK million)	2014	Q3 2014	2013
Intangible assets	415.6	420.3	434.5
Property, plant and equipment	17.4	7.9	4.9
Investments in associated companies and joint ventures	156.7	144.0	150.7
Other non-current assets	121.8	125.5	166.6
Total non-current assets	711.5	697.7	756.7
Inventories (property)	4 348.8	4 550.1	4 283.9
- Land	1 614.4	1 673.4	1 753.4
- Work in progress	2 360.3	2 740.6	2 398.8
- Finished goods	374.1	136.0	131.6
Other current receivables	588.0	291.9	342.3
Cash and cash equivalents	565.9	777.0	587.0
Total current assets	5 502.8	5 618.9	5 213.2
1 TOTAL ASSETS	6 214.2	6 316.6	5 969.8
1112131 Equity attributed to shareholders in Selvaag Bolig ASA*	2 442.6	2 313.8	2 236.3
Non-controlling interests	14.7	23.9	22.7
Total equity	2 457.3	2 337.7	2 259.0
Non-current interest-bearing liabilities	1 752.4	2 295.0	2 116.2
Other non-current non interest-bearing liabilities	293.6	302.9	258.1
Total non-current liabilities	2 046.0	2 598.0	2 374.3
Current interest-bearing liabilities	959.5	728.1	669.0
Other current non interest-bearing liabilities	751.4	652.8	667.5
Total current liabilities	1 710.9	1 380.9	1 336.6
TOTAL EQUITY AND LIABILITIES	6 214.2	6 316.6	5 969.8
* Corresponding to a book value of NOK 26.0 per share

Balance sheet

Q 2 14	Q3 14	Q4 14
255	259	233
197	203	280
253	274	319
236	279	266
1418	1 347	1 308
76%	76 %	77%
17	18	39
5 2 3 8	5 1 5 9	4 689
100	100	99

Operational highlights – key operating figures

(number of residential units, unless otherwise stated)	Q4 13	Q1 14	Q2 14	Q3 14	Q4 14
Number of units sold	61	139	255	259	233
Number of construction starts	296	77	197	203	280
Number of units completed	101	77	253	274	319
Number of units delivered	118	80	236	279	266
Number of units under construction	1 474	1 474	1 418	1 347	1 308
Proportion of sold units under construction	75 %	76 %	76 %	76 %	77 %
Number of completed unsold units	8	8	17	18	39
Sales value of units under construction (NOK million)	5 421	5 547	5 238	5 159	4 689
Number of employees	98	99	100	100	99

IFRS EBITDA Q4 2014

		Property development
(figures in NOK million)		Greater Oslo Rest of Norway Other countries		Other	Total
IFRS EBITDA for the quarter, per segment
Operating revenues	761.5	358.1	0.3	6.3	1 126.2
Project expenses	(570.1)	(297.8)	-	0.2	(867.8)
Other operating expenses	(17.2)	(13.9)	(1.3)	(48.0)	(80.5)
Share of income (losses) from associated companies and joint
ventures	(1.1)	1.6	3.9	-	4.4
Other gain (loss), net	-	-	-	-	-
EBITDA	173.0	48.0	2.9	(41.5)	182.4

Operational reporting Q4 2014

(figures in NOK million)		Property development
			Greater Oslo Rest of Norway Other countries		Total
Operating revenues	2 137.0	950.4	2.2	23.6	3 113.2
Project expenses	(1 637.9)	(762.6)	-	(1.4)	(2 401.9)
Other operating expenses	(42.8)	(30.2)	(3.5)	(139.4)	(215.9)
EBITDA (percentage of completion)	456.3	157.6	(1.4)	(117.2)	495.4

Note: Construction costs are exclusive of financial expenses in the segment reporting.

Land loan interests on the P&L

• ! Total land loans are NOK 931 million of which NOK 580 million are loans where interest cost are activated
• ! Land loan interests activated at regulation
• ! As at 31 December interests connected to land loans of NOK 351 million was charged on the P&L

Loans recognised in profit and loss at 31.12.2014

NOKm

Book value at time of valuation (Nov 2014)

• ! Independent land valuation, by Akershus Eiendom.
• ! Valuation is mainly based on a calculated profit from sales of fully developed housing units
• ! For projects under development, remaining costs are split on developer and buyer, affecting value distribution
• ! DCF valuation method is applied on residents for lease

Land bank valuation

NOKm

External valuation vs. book value

45

! Purchase and payment of land takes place after zoning plan approval. If this is not obtained, the purchase is cancelled

! SBO is in charge of the zoning process

4 Fixed price construction contract

! Purchase price is decided by a land appraisal made by three external consultants at the time of zoning approval

! The median valuation is used as purchase price

! Pre-sales of minimum 60% secures the majority of revenue before construction

! 10% of purchase price paid by the buyer at point of sale, and proof of financing for the remaining amount is required

! Construction contracts with solid counterparties are made with fixed price

! Project costs are secured before construction starts

Low-risk business model

• ! Selvaag's equity investment in a project and project margin bring the remaining project cost down to 74%-78%
• ! With minimum 60% pre-sale, there is limited remaining project risk
• ! 77% of units in production are sold per Q4'14

Risk profile at start of project De-risking in key stages of projects

Modules vs. on-site construction

Lervig Brygge – on-site

Approximate average value