Selvaag Bolig ASA

Earnings Release • Nov 14, 2014

Selvaag Bolig ASA: Q3 2014: Sharp rise in sales and good results

Selvaag Bolig ASA: Q3 2014: Sharp rise in sales and good results

Third quarter of 2014:

* Expected dividend of minimum NOK 1.0 per share for fiscal 2014

* Good sales in core areas and good margins for homes both under construction

and delivered

* Sales value of homes sold up 46 per cent

* Operating revenues (NGAAP) of NOK 723.5 million

* EBITDA of NOK 120 million, representing a margin of 16.6 per cent

* 259 homes sold, 203 started and 279 delivered

Selvaag Bolig achieved operating revenues (Norwegian generally accepted

accounting principles) of NOK 723.5 million in the third quarter, up from NOK

613.7 million in the same period of last year. EBITDA was NOK 120 million,

compared with NOK 104.5 million in the third quarter of 2013 - corresponding to

margins of 16.6 and 17 per cent respectively.

"We're selling well and delivering very good results in all our projects," says

CEO Baard Schumann.

"We see that our strategy of being free to choose construction company, specific

geographic priority areas and reasonably-priced house types has a positive

effect on both sales volume and results.

We've delivered steadily over time, and all the signs are that 2014 will be

substantially better than expected. The results have been good so far this year

and there will be a large number of deliveries in the fourth quarter. This means

that the company expects that the dividend for fiscal 2014 will be at least NOK

1.0 per share.That is twice as much as for fiscal 2013."

Selvaag Bolig sold 259 homes with a combined sales value of NOK 915 million

during the quarter, compared with 236 with a value of NOK 625 million in the

same period of 2013. That represented an increase of 46 per cent in sales value.

Construction started on 203 homes (2013: 335) during the quarter, giving the

company 1 347 homes (1 279) under construction with a combined sales value of

about NOK 5.2 billion (NOK 4.7 billion) at 30 September.

A total of 279 homes (187) were delivered during the quarter, including units

completed in earlier periods. Selvaag Bolig had 18 completed homes (22) still

unsold at 30 September.

At 30 September, 76 per cent of the housing under construction (76 per cent) had

been sold. Since sold homes are first recognised as income on delivery to the

buyer, the inventory of such units represents substantial value for Selvaag

Bolig in the time ahead.

Revenues for homes delivered pursuant to the IFRS in the quarter came to NOK

764.7 million (NOK 676.7 million). EBITDA was NOK 95.3 million (NOK 91 million),

which corresponds to a margin of 12.5 per cent (13.5 per cent).

Adjusted for financial expenses included in project costs, EBITDA came to NOK

124.8 million (NOK 109.6 million). This corresponds to a margin of 16.3 per cent

(16.2 per cent).

Of the 279 homes delivered during the quarter, 95 were student residences with

an average value of NOK 700 000.

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

The interim report for the third quarter of 2014 can be downloaded here

www.selvaagboligasa.no/en

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#1871052]