Selvaag Bolig ASA

Earnings Release • Aug 27, 2014

Selvaag Bolig ASA: Q2 2014: Good margins and sales

Selvaag Bolig ASA: Q2 2014: Good margins and sales

Second quarter of 2014:

* Improved sales owing to better market conditions

* Building activity still high, and stable number of construction starts

* 255 homes sold, 197 started and 236 delivered

* Operating revenues (NGAAP) of NOK 830.5 million, EBITDA of NOK 121 million

(14.6 per cent)

Selvaag Bolig achieved operating revenues (Norwegian generally accepted

accounting principles) of NOK 830.5 million in the second quarter, up from NOK

593.5 million in the same period of last year. EBITDA was NOK 121 million,

compared with NOK 90.7 million in the second quarter of 2013 - corresponding to

margins of 14.6 and 15.3 per cent respectively.

"We're delivering high margins on projects under construction, and we have made

good choices on locations, price and house types," says CEO Baard Schumann.

"Sales of new homes improved considerably during the second quarter, and we were

ahead of our sales budget at 30 June. We are well placed to reach our 2014

targets."

Selvaag Bolig started construction of 197 homes (2013: 284) during the quarter.

At 30 June, the company had 1 418 homes (1 131) under construction with a

combined sales value of about NOK 5.2 billion (NOK 4.2 billion). Seventeen

completed homes (23) remained unsold at that date.

At 30 June, 76 per cent of the housing under construction (83 per cent) had been

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

the inventory of such buildings represents substantial value for Selvaag Bolig

in the time ahead. The IFRS result for the second quarter of 2014 was good

because of a large number of deliveries during the period.

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

809.5 million (NOK 620.9 million) and EBITDA to NOK 100.2 million (NOK 94.3

million), which corresponds to a margin of 12.4 per cent (15.2 per cent).

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

http://www.selvaagboligasa.no/en

Further information from

Baard Schumann, CEO, Selvaag Bolig ASA

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

Haavard Rønning, CFO, Selvaag Bolig ASA

Tel: +47 400 20 019, e-mail: hroe@selvaagbolig.no

Selvaag Bolig ASA is a residential property developer, which controls the whole

value chain from the acquisition of land to the sale of turnkey homes. With

several thousand homes under development at any given time, the company

concentrates on the growth areas in and around Greater Oslo, Bergen, Stavanger

and Trondheim. Selvaag Bolig continues the 60-year history and experience of the

Selvaag group, and offers a broad range of home types under the Start, Hjem and

Pluss brands. Its head office is at Løren in Oslo.

www.selvaagbolig.no/investor/en

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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