Selvaag Bolig ASA

Earnings Release • Feb 12, 2025

Q4 2024 Fourth quarter results

Highlights of the fourth quarter 2024

Selvaag Bolig delivered 172 units in the fourth quarter. Both revenues and earnings per share were lower than the corresponding quarter one year earlier, primarily because of fewer delivered units. Total sales in 2024 were better than in 2023, with sales volumes up by 208 homes and sales value higher by NOK 1 565 million. The market for new housing is improving and the number of units under construction was higher than in the preceding quarters. The board proposes a dividend of NOK 1.25 per share for 2024.

• Operating revenues¹ NOK 498 million (NOK 1 247 million)
• Adjusted EBITDA³ NOK 87 million (NOK 203 million) and ordinary EBITDA² NOK 51 million (NOK 130 million)
• Pre-tax profit of NOK 59 million (NOK 137 million)
• 122 units sold⁶ (88) and construction started on 298 units (130)
• 168 units completed (331) and 172 delivered (276)
• A total of 829 units (784) under construction at 31 December, with a combined sales value of NOK 6 134 million (NOK 4 496 million)
• 61 per cent of units under construction sold (62 per cent) sold by the end of the quarter. 75 per cent of the homes that will be completed in 2025 are sold (69 per cent)
• The board proposes a dividend of NOK 1.25 per share (NOK 2.00) for 2024

(Figures in brackets relate to the same period of the year before)

Key figures

(figures in NOK 1 000)	Q4 2024	Q4 2023	2024	2023
IFRS main figures
Operating revenues1	498 118	1 246 701	1 971 044	3 254 651
EBITDA2	51 052	130 190	208 013	310 129
EBITDA adjusted3	86 781	202 622	320 214	451 680
Operating profit/(loss)	48 561	127 831	198 225	300 898
Profit/(loss) before taxes	58 942	137 419	209 196	319 477
Net income	46 621	108 319	176 956	244 677
Cash flow from operating activities	(46 800)	814 892	87 058	1 196 613
Net cash flow	194 548	73 557	117 127	(346 148)
Interest-bearing liabilities	1 613 113	1 410 212	1 613 113	1 410 212
Total assets	5 158 987	4 754 411	5 158 987	4 754 411
Equity	2 393 249	2 306 964	2 393 249	2 306 964
Equity ratio	46.4%	48.5%	46.4%	48.5%
Earnings per share in NOK	0.50	1.16	1.90	2.62
Segment reporting (NGAAP4 )
Operating revenues	877 360	564 704	2 543 589	2 153 082
EBITDA5	95 998	39 450	220 345	202 392
EBITDA margin	10.9%	7.0%	8.7%	9.4%
Key figures (net, adjusted for share in joint ventures)
Number of units sold6	122	88	568	360
Number of construction starts	298	130	559	275
Number of units delivered	172	276	532	655
Number of units completed	168	331	514	744

1 Operating revenues do not include revenues from joint ventures.

2 EBITDA is operating profit before interest, taxes, depreciation, amortisation and other gains (losses).

3 EBITDA adjusted excludes financial expenses included in project cost. See note 6 for details.

4 The NGAAP accounts utilise the percentage of completion method, i.e percentage of completion multiplied by the sales ratio.

5 EBITDA is operating profit before interest, tax, depreciation, amortisation, profit from joint ventures and other gains (losses).

6 Units sold are sales contracts entered into with customers pursuant to the Norwegian Housing Construction Act and the Swedish Bostadsrätsslagen. In accordance with the IFRS, they are recognised as income on delivery.

Financial review

Summary of overall results

(figures in NOK 1 000)	Q4 2024	Q4 2023	2024	2023
Total operating revenues	498 118	1 246 701	1 971 044	3 254 651
Project expenses	(405 548)	(1 042 822)	(1 580 327)	(2 677 166)
Other operating expenses, salaries and personnel costs,
depreciation and amortisation	(80 475)	(83 589)	(264 812)	(263 235)
Total operating expenses	(486 023)	(1 126 411)	(1 845 139)	(2 940 401)
Associated companies and joint ventures	36 466	7 541	72 320	(13 352)
Operating profit	48 561	127 831	198 225	300 898
Net financial expenses	10 381	9 588	10 971	18 579
Profit before taxes	58 942	137 419	209 196	319 477
Income taxes	(12 321)	(29 100)	(32 240)	(74 800)
Net income	46 621	108 319	176 956	244 677

Results for the fourth quarter of 2024

(Figures in brackets relate to the corresponding period of 2023. The figures are unaudited.)

Selvaag Bolig had operating revenues of NOK 498.1 million (NOK 1 246.7 million) in the fourth quarter. Revenues from units delivered accounted for NOK 477.7 million (NOK 1 172.0 million) of the total. In 2023 in addition, a land plot in Bærum was sold by the group for NOK 57.5 million to financing partner Urban Property. Other revenues derived from noncore activities, mainly provision of services.

A total of 172 units (276) were delivered in the quarter, including 109 (248) from consolidated project companies and 63 (28) from joint ventures.

Project costs for the quarter totalled NOK 405.5 million (NOK 1 042.8 million), of which NOK 35.7 million (NOK 72.4 million) represented previously capitalised financial expenses. Total project expenses primarily represented construction costs for units delivered as well as costs in projects which did not qualify for capitalisation as inventory.

Operating costs excluding project costs totalled NOK 80.5 million (NOK 83.6 million) for the period. Payroll costs accounted for NOK 49.7 million (NOK 49.3 million) of this figure. In addition, NOK 19.8 million (NOK 19.7 million) in payroll costs relating to housing under construction, including bonus costs, was capitalised during the quarter. These payroll costs will be expensed as project costs on future delivery.

Other operating costs came to NOK 28.3 million (NOK 32.0 million) for the quarter, including NOK 7.4 million (NOK 11.2 million) for sales and marketing.

The share of profit from associates and joint ventures was positive at NOK 36.5 million (positive at NOK 7.5 million) for the quarter. The increase from the same period of 2023 primarily reflected more units delivered from joint ventures.

Reported EBITDA was NOK 51.1 million (NOK 130.2 million), corresponding to a margin of 10.2 per cent (10.4 per cent). EBITDA adjusted for the share of project costs in financial expenses came to NOK 86.8 million (NOK 202.6 million), corresponding to a margin of 17.4 per cent (16.3 per cent). The decline in the EBITDA margin from the previous year primarily reflected fewer delivered units. Results from joint ventures are presented net and thus their revenues are not included in the group's turnover. For more information, see note 8 on proportional consolidation.

Consolidated depreciation and amortisation totalled NOK 2.5 million (NOK 2.4 million) for the quarter. Operating profit thereby came to NOK 48.6 million (NOK 127.8 million).

Net financial items amounted to NOK 10.4 million (NOK 9.6 million). Pre-tax profit for the quarter thereby came to NOK 58.9 million (NOK 137.4 million).

Tax expense for the period was NOK 12.3 million (NOK 29.1 million). Comprehensive income for the fourth quarter came to NOK 46.6 million (NOK 108.3 million). NOK 46.6 million of the profit was attributable to the shareholders of Selvaag Bolig ASA (NOK 108.3 million), and NOK 0.0 million to noncontrolling shareholders (NOK 0.0 million).

Results for the full year 2024

Selvaag Bolig had operating revenues of NOK 1 971.0 million (NOK 3 254.7 million) for the year. Revenues from units delivered accounted for NOK 1 661.3 million (NOK 3 065.8 million) of the total. In addition, the group sold two properties, one in Bærum and one in Lørenskog, for a total of NOK 229.9 million. In the same period in 2023, the group sold land plots and a commercial property in Rogaland for NOK 62.9 million and a land plot in Bærum was sold for NOK 57.5 million to financing partner Urban Property. Other revenues related to non-core activities, mainly provision of services.

A total of 532 units (655) were delivered in the year, including 343 (612) from consolidated project companies and 189 (43) from joint ventures.

Project costs for the year totalled NOK 1 580.3 million (NOK 2 677.2 million), primarily construction costs for units delivered, as well as costs in other projects which did not qualify for capitalisation as inventory.

Operating costs excluding project costs and associates totalled NOK 264.8 million (NOK 263.2 million) for the period. Payroll costs accounted for NOK 149.1 million (NOK 145.3 million) of this figure. In addition, NOK 34.6 million (NOK 33.7 million) in payroll costs relating to housing under construction was capitalised and will be expensed as project costs on future delivery.

Other operating costs came to NOK 106.0 million (NOK 108.7 million), including NOK 35.1 million (NOK 38.5 million) for sales and marketing.

Cash flow

Consolidated net cash flow from operational activities was negative at NOK 46.8 million (positive NOK 814.9 million) for the fourth quarter. The negative cash flow was mainly due to the increase in units in construction. The decrease from the same period of 2023 primarily reflected changes in inventory.

For the full year 2024, consolidated cash flow from operational activities was NOK 87.1 million (NOK 1 196.6 million). The decrease from last year primarily reflected the effect of the change in inventory.

Net cash flow from investing activities was NOK 22.1 million (positive at NOK 22.3 million) for the quarter.

Cash flow from investing activities for the year was positive at NOK 23.2 million (negative at NOK 45.3 million). The change from last year primarily reflected that in 2023 payments were made to finance joint ventures as well as

The share of profit from associates and joint ventures was NOK 72.3 million (negative at NOK 13.4 million). The increase from the previous year primarily reflected more units delivered in joint ventures.

Reported EBITDA was NOK 208.0 million (NOK 310.1 million), corresponding to a margin of 10.6 per cent (9.5 per cent). EBITDA adjusted for financial expenses included in project costs came to NOK 320.2 million (NOK 451.7 million), corresponding to a margin of 16.2 per cent (13.9 per cent). The decline in EBITDA from the previous year primarily reflected fewer delivered units. The increase in the EBITDA margin from 2023 primarily reflected more units delivered from joint ventures and the contribution from the sale of two properties. The EBITDA margin is influenced by presenting results from joint ventures net rather than including them in turnover. For more information, see note 8 on proportional consolidation.

Consolidated operating profit for the year came to NOK 198.2 million (NOK 300.9 million). Net financial income amounted to NOK 11.0 million (NOK 18.6 million).

That brought pre-tax profit for the year to NOK 209.2 million (NOK 319.5 million).

Estimated tax expense for the year is NOK 32.2 million (NOK 74.8 million). Comprehensive income for 2024 came to NOK 177.0 million (NOK 244.7 million). NOK 177.0 million of the profit was attributable to the shareholders of Selvaag Bolig ASA (NOK 244.7 million), and NOK 0.0 to non-controlling shareholders (NOK 0.0 million).

dividends received from joint ventures being somewhat higher in 2024.

Net cash flow from financing activities was positive at NOK 219.3 million (negative at NOK 763.6 million) for the quarter. The change from the same period of 2023 primarily reflected increased net repayment of construction loans.

During the full year, net cash flow from financing activities was positive at NOK 6.8 million (negative at NOK 1 497.5 million). The change from last year primarily reflected larger net repayment of construction loans in 2023 and less dividends paid in 2024.

The group's holding of cash and cash equivalents at 31 December totalled NOK 383.6 million (NOK 266.5 million), an increase of NOK 194.5 million from 30 September and an increase of NOK 117.1 million from a year earlier.

Cash flow summary

(figures in NOK 1 000)	Q4 2024	Q4 2023	2024	2023
Profit before taxes	58 942	137 419	209 196	319 477
Net cash flow from operating activities	(46 800)	814 892	87 058	1 196 613
Net cash flow from investment activities	22 085	22 275	23 237	(45 251)
Net cash flow from financing activities	219 263	(763 610)	6 832	(1 497 510)
Net change in cash and cash equivalents	194 548	73 557	117 127	(346 148)
Cash and cash equivalents at start of period	189 101	192 965	266 522	612 670
Cash and cash equivalents at end of period	383 649	266 522	383 649	266 522

Financial position

The carrying amount of Selvaag Bolig's total inventory (land, units under construction and completed units) at 31 December was NOK 3 257.8 million, compared with NOK 3 106.5 million at 30 September and NOK 3 199.5 million a year earlier. See note 5 for a further specification of inventory.

The group's accounts receivable were NOK 62.4 million at the end of the quarter. In comparison, accounts receivable were NOK 82.7 million at the end of the previous quarter and NOK 60.2 million at the same time the year before. The decline in the fourth quarter was because flats that were delivered towards the end of the third quarter had their payment postponed to the fourth quarter. These are considered normal fluctuations and do not involve any credit risk as the funds are in the client's account with the settlement intermediary from the handover of the flat to the final receipt of settlement.

Equity was NOK 2 393.2 million (NOK 2 307.0 million) at 31 December, corresponding to an equity ratio of 46.4 per cent (48.5 per cent). Selvaag Bolig ASA paid a dividend of NOK 93.6 million in the second quarter (NOK 187.4 million), based on profit for the second half of 2023. An additional dividend of NOK 93.7 million was paid in the third quarter of 2023, based on the result in the first half of 2023. Non-controlling interests amounted to NOK 7.9 million (NOK 7.8 million) of equity.

Other current non-interest-bearing liabilities for the group totalled NOK 352.7 million (NOK 356.3 million) at 31 December, of which NOK 36.9 million (NOK 21.1 million) represented advance payments from customers.

At 31 December, consolidated interest-bearing debt amounted to NOK 1 613.1 million (NOK 1 410.2 million), of which NOK 935.4 million (NOK 681.8 million) was non-current and NOK 677.7 million (NOK 728.4 million) was current. NOK 504.5 million (NOK 404.6 million) of current debt was related to repurchase agreements with and seller credits for Urban Property. Selvaag Bolig and Urban Property have renegotiated financial covenants. The new covenants apply from 1 January 2025. See note 7 and 11 for more information.

The group had land loans totalling 34.0 million (NOK 95.0 million) at 31 December. This relatively low level reflects the fact that a large part of the properties is financed through Urban Property and classified as current liabilities, repurchase agreements and seller credits. Land loans are normally converted to construction loans in line with the progress of the respective development projects.

Selvaag Bolig ASA has a credit facility agreement of NOK 300 million with DNB, which matures in December 2027. The agreement contains financial covenants, see note 11. The group also has an annually renewed overdraft facility of NOK 150 million with the same bank. No drawings had been made against any of these facilities at 31 December.

Net interest-bearing debt

(figures in NOK 1 000)	Q4 2024	Q3 2024	2023
Non-current interest-bearing debt	935 433	602 263	681 776
Current interest-bearing debt	173 230	356 191	323 826
Current liabilities repurchase agreements and seller credits	504 450	396 799	404 610
Cash and cash equivalents	(383 649)	(189 101)	(266 522)
Net interest-bearing debt	1 229 464	1 166 152	1 143 690

The group's interest-bearing debt falls primarily into four categories: 1) top-up loans, which are liabilities in parent company Selvaag Bolig ASA, 2) land loans, 3) repurchase agreements with Urban Property and 4) construction loans. At 31 December 2024, the group had no top-up loans. Land loans totalled NOK 34 million, repurchase agreements with Urban Property were NOK 504 million and total construction loans were NOK 1 075 million. NOK 52 million of the construction loans was tied to completed units.

Interest-bearing debt at 31 Dec 2024 (NOK mill)

Interest costs on land loans are recognised in profit and loss until the site secures planning permission. They are then 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 charges on construction loans are capitalised during the construction period and recognised under cost of sales in the

same way. At 31 December, interest of NOK 34 million on land loans had been capitalised.

In connection with the Urban Property transaction in 2020, a large proportion of the group's land loans were redeemed and replaced with liabilities in the form of repurchase agreements with Urban Property. This means that interest charges on land loans related to these sites, which are collectively designated Portfolio B, have been replaced by option premiums paid quarterly. These premiums are treated in the accounts in the same way as land-loan interest charges, being capitalised as inventory and included in the cost of sales on delivery of completed units. Option premiums paid and capitalised for sites in Portfolio B came to NOK 4.8 million (NOK 6.0 million) for the fourth quarter and totalled NOK 20.2 million (NOK 21.9 million) for the year.

Portfolio C comprises land which the group has the right or obligation to purchase from Urban Property in the future. See note 7 for more information. Provision for accrued option premiums is made quarterly as other long-term assets and other long-term liabilities respectively in Selvaag Bolig's consolidated accounts.

When a purchase agreement is made for a land plot, the debt is reclassified as short-term debt. The asset is reclassified as inventory when the land is taken over. Provision for and capitalisation of option premiums for portfolio C in the fourth quarter came to NOK 55.3 million (NOK 48.4 million). Provision for and capitalisation of option premiums for portfolio C for the year came to NOK 213.7 million (NOK 166.4 million). At 31 December, accumulated provision and capitalisation came to NOK 498.3 million (NOK 337.6 million).

See note 7 for a description of the collaboration with UP.

Operational reporting

Each project is followed up individually in daily operations, and operational reporting accordingly comprises one main segment – Housing development. Reporting also comprises the "Other" 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 (NGAAP), 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).

Segments fourth quarter and full year 2024

Fourth quarter
		Operating revenues	EBITDA			Operating profit/loss
(figures in NOK 1 000)	Q4 24	Q4 23	Q4 24	Q4 23	Q4 24	Q4 23
Housing development (NGAAP)	857 997	548 357	145 952	82 082	154 450	89 893
Other	19 363	16 347	(49 954)	(42 632)	(50 500)	(43 123)
IFRS adjustments	(379 242)	681 997	(44 946)	90 740	(55 389)	81 061
Total group (IFRS)	498 118	1 246 701	51 052	130 190	48 561	127 831

Jan-Dec

		Operating revenues	EBITDA		Operating profit/loss
(figures in NOK 1 000)	12M 24	12M 23	12M 24	12M 23	12M 24	12M 23
Housing development (NGAAP)	2 471 400	2 088 269	367 924	344 700	394 483	372 566
Other	72 189	64 813	(147 579)	(142 308)	(149 817)	(144 055)
IFRS adjustments	(572 545)	1 101 569	(12 332)	107 737	(46 441)	72 387
Total group (IFRS)	1 971 044	3 254 651	208 013	310 129	198 225	300 898

Housing development

This segment comprises all Selvaag Bolig's projects regardless of geographical location since each project is followed up individually.

Operating revenues from housing development for the fourth quarter were NOK 858.0 million (NOK 584.4 million). They were derived from 19 projects (16) in production.

Operating costs, primarily for construction and sales, are directly related to the projects and amounted to NOK 712.0 million (NOK 466.3 million) for the fourth 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 146.0 million (NOK 82.1 million) for the quarter, corresponding to a profit margin of 17.0 per cent (15.0 per cent).

Other business - unallocated

The Other business segment comprises several 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 segment in the fourth quarter came to NOK 19.4 million (NOK 16.3 million), while operating costs amounted to NOK 69.3 million (NOK 59.0 million). Costs relate largely to remuneration for the administration and management, as well as to other operating costs. EBITDA was thereby negative at NOK 50.0 million (negative at NOK 42.6 million).

Review of operations

All figures are presented net, adjusted for Selvaag Bolig's share of joint ventures, unless otherwise specified. Units sold are sales contracts entered into with customers pursuant to the Norwegian Housing Construction Act and the Tenancy Act in Sweden. Pursuant to the IFRS, these are recognised as income on delivery.

Operations

Gross sales during the quarter totalled 160 units with a combined value of NOK 1 121 million. All sales during the quarter were in Norway. Selvaag Bolig's share amounted to 122 units with a combined value of NOK 849 million.

Work started on constructing 298 units during the fourth quarter, so that Selvaag Bolig had 829 units worth some NOK 6.1 billion under construction at 31 December. A total of 168 units were completed during the quarter.

To manifest value creation in the group, segment reporting shows revenue and costs in the various projects using the

percentage of completion method as its accounting principle.

Projects

The group has projects in Oslo, Bærum, Asker, Lørenskog, Ski, Ås, Fredrikstad, Stavanger, Tønsberg, Trondheim, Bergen and Stockholm. However, no projects were under construction in Fredrikstad, Ski, Tønsberg or Stockholm during the fourth quarter.

Quarterly development of the project portfolio

	Q4 23	Q1 24	Q2 24	Q3 24	Q4 24
Units sold	88	139	207	100	122
Construction starts	130	123	95	43	298
Units completed	331	236	105	5	168
Completed unsold units	95	126	119	87	81
Completed sold units pending delivery	30	56	41	23	26
Units delivered	276	179	127	54	172
Units under construction	784	671	661	700	829
Proportion of sold units under construction	62 %	62 %	66 %	67 %	61 %
Sales value of units under construction (NOK million)	4 496	3 948	4 211	4 495	6 134

Purchase and sale of land

During the quarter, Selvaag Bolig entered an agreement to purchase a land plot in Stockholm, Terasskvarteren, which is expected to yield roughly 200 units. The purchase was made directly by Selvaag Bolig. The agreement is for land allocation from the municipality and therefore it does not tie up capital. Payment takes place when the land plot is ready for construction.

Further, an agreement was made to purchase a land plot in Moss in a 50-50 joint venture, which is expected to yield approximately 800 units, with Selvaag Bolig's share amounting to roughly 400 units.

During the quarter, the group also purchased two land plots from Urban Property for a total of NOK 223 million, see also note 7.

Sales development and progress

Units sold

Total housing sales during the fourth quarter, including Selvaag Bolig's relative share of joint ventures, amounted to 122 units with a combined sales value of NOK 849 million. These sales comprise Selvaag Bolig's consolidated project companies as well as its relative share of units sold in jointventure projects. Sales in the same period of 2023 totalled 88 units with a combined value of NOK 531 million. In the third quarter of 2024, 100 units were sold with a combined value of NOK 679 million.

Value of units sold (NOK mill)

Selvaag Bolig started sales on two projects with a total of 70 units (0) units during the quarter.

Sales starts in the quarter

Project	No of units Category		Region
Solbergskogen	16	Flat	Greater Oslo
Solheimsvatnet Pluss	54	Flat	Bergen
Total	70

Construction began on 298 (130) units during the quarter. At 31 December, Selvaag Bolig consequently had 829 (784) units under construction. They included 680 units in Greater Oslo, 58 in Bergen and 91 in Stavanger.

Construction starts can vary substantially from quarter to quarter, since construction normally only begins when 60 per cent of the units in a project have been sold.

The order backlog at 31 December – in other words, the sales value of the 829 units (784) units then under construction – was NOK 6 134 million (NOK 4 496 million).

A total of 168 (331) units were completed in the fourth quarter, and 172 (276) – including ones completed earlier – were delivered. The completed units were spread over nine projects.

At 31 December, the group held 81 completed but unsold units, compared to 87 at the end of the previous quarter, and 95 at the end of the fourth quarter of 2023. The group also had 26 completed units that were sold, but not delivered at the end of the quarter (30). Consolidated project companies accounted for 109 (248) of the units delivered, while 63 (28) were in part-owned project companies.

Units completed by project

Project	No of units Category		Region
Skårerbyen Gårdskvartalet	103	Flat	Greater Oslo
Lille Løren Park	49	Flat	Greater Oslo
Ringve Pluss	16	Flat	Trondheim
Total	168

Based on anticipated progress for the projects, no units are expected to be completed in the first quarter of 2025. Estimated completions for 2025 as a whole amount to 374 units.

Expected number of completions

Share information

The company had 93.77 million issued shares at 31 December, divided between 6 879 shareholders.

The 20 largest shareholders controlled 81.0 per cent of the total number of issued shares. The largest shareholder was Selvaag AS, with a 53.5 per cent holding.

During the quarter, the Selvaag Bolig share varied in price from NOK 31.30 to NOK 36.10. The closing price at 31 December was NOK 36.10. That compared with NOK 35.35 at 30 September, and the share price accordingly rose by 2.1 per cent over the quarter.

Just over 2.95 million shares, or 3.1 per cent of the overall number outstanding, were traded on Euronext Oslo Børs during the period. Share turnover totalled NOK 100.5 million during the quarter, corresponding to an average daily figure of roughly NOK 1.6 million.

20 largest shareholders at 31 December 2024

Shareholder	# of shares	% share
SELVAAG AS	50 180 087	53.5%
Skandinaviska Enskilda Banken AB *	4 680 572	5.0%
PERESTROIKA AS	3 443 837	3.7%
VERDIPAPIRFONDET ALFRED BERG GAMBA	3 096 726	3.3%
The Northern Trust Comp, London Br *	2 186 000	2.3%
EGD CAPITAL AS	1 704 752	1.8%
SANDEN EQUITY AS	1 660 000	1.8%
HAUSTA INVESTOR AS	1 600 000	1.7%
MUSTAD INDUSTRIER AS	1 067 454	1.1%
Goldman Sachs International *	965 549	1.0%
The Northern Trust Comp, London Br *	840 200	0.9%
Brown Brothers Harriman & Co. *	684 331	0.7%
Sverre Molvik	677 403	0.7%
Øystein Klungland	677 403	0.7%
VERDIPAPIRFONDET ALFRED BERG NORGE	505 298	0.5%
Brown Brothers Harriman & Co. *	492 551	0.5%
Skandinaviska Enskilda Banken AB *	399 628	0.4%
KBC Bank NV *	387 922	0.4%
Christopher Brunvoll	387 791	0.4%
VARDE NORGE AS	350 000	0.4%
Total 20 largest shareholders	75 987 504	81.0%
Other shareholders	17 778 184	19.0%
Total number of shares	93 765 688	100.0%

* Further information regarding shareholders is presented at: http://sboasa.no/en

Risk and uncertainty factors

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 the categories market risk, operational risk, financial risk and climate risk. 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.

Macroeconomic conditions – particularly unemployment and interest rates – as well as demographic changes are factors that affect the group's development.

As a pure housing developer, without its own construction arm, Selvaag Bolig puts all building work out to competitive tender. This means the group has great operational flexibility and can adapt its operations at short notice to changing levels of activity in the market. As a general rule, it requires 60 per cent advance sales before initiating projects. 61 per cent of total units under construction and 75 per cent of planned completions in 2025 had been sold at 31 December 2024.

See the group's annual report, available on its website, for a more detailed explanation of the risk and uncertainty factors it faces.

Outlook

Selvaag Bolig is well-positioned with large projects in growth areas in and near the largest cities in Norway and in Stockholm.

According to Statistics Norway, urbanisation and population growth create a large and long-term demand for new housing in Selvaag Bolig's core areas. However, during the recent years, the market has been negatively affected by increased construction costs and home loan interest rates, as well as reduced household purchasing power. This has resulted in more housing completions than housing starts for the company, and the order backlog fell considerably until the end of the second quarter of 2024.

During the second half of 2024, however, increased sales have enabled Selvaag Bolig to start construction on more new homes than it completed, and thus the order backlog has increased compared to the end of 2023.

The company's sales were better in 2024 than in 2023, and during the year, the company had gross sales of 665 units valued at NOK 4 363 million. That was 230 units and NOK 1 778 million more than in 2023. The company is planning more sales starts going forward and is launching new projects in line with the demand in the market, which is expected to increase, leading to higher activity in the market for new housing. Uncertainty tied to the development of new home sales due to macroeconomic conditions will, however, still be able to influence the start of new projects, and thereby also the number of homes under construction for the company.

Selvaag Bolig is well equipped organisationally, operationally and financially to support and strengthen its market position going forward. The company still has a good order backlog, a solid land bank in the company's core areas and available capital through the Urban Property (UP) agreement to buy new land plots.

Transactions with related parties

According to the accounting rules, Urban Property (UP) is a related party to the group. This means that ongoing option premiums as well as sales and repurchases of land plots are regarded as related-party transactions, see note 7 for further information.

During the quarter, Selvaag Bolig purchased two land plot from Urban Property for a total of NOK 223 million, see also note 7. A new option agreement has been entered into with Urban Property related to a property in Bergen. Further, Selvaag Bolig delivered a residential building with 71 flats to Selvaag Utleiebolig AS, a wholly owned subsidiary of Selvaag AS. The sale generated revenue of NOK 274 million. See note 23 to the group's annual reports for detailed information on transactions with related parties in earlier years.

Housing market

In Norway as a whole there has been high sales activity in the second-hand housing market in 2024. More homes have been both offered for sale and sold than in 2023, and the inventory of homes for sale, which has been high in several areas, fell during the year. The inventory is now low in Oslo and Bergen and record low in the Stavanger area. In Trondheim, the inventory has fallen, but is still at a relatively high level. In Akershus, the inventory fell back to a normal level during the second half of the year.

The price development was strong in 2024. According to Real Estate Norway, the national second-hand housing prices rose by 6.4 per cent last year. In Oslo, prices rose 6.8 per cent. In the Stavanger region, prices rose by 11.3 per cent and in Bergen, prices increased by 13.1 per cent. The increase in Trondheim was 2.8 per cent. It is worth noting that the average square metre price is significantly higher in Oslo than in the other areas.

Interim financial statements (IFRS)

Statement of comprehensive income

(figures in NOK 1 000, except earnings per share)	Q4 2024	Q4 2023	2024	2023
Revenues	477 653	1 229 583	1 895 375	3 186 235
Other revenues	20 465	17 118	75 669	68 416
Total operating revenues	498 118	1 246 701	1 971 044	3 254 651
Project expenses	(405 548)	(1 042 822)	(1 580 327)	(2 677 166)
Salaries and personnel costs	(49 706)	(49 276)	(149 060)	(145 318)
Depreciation and amortisation	(2 491)	(2 359)	(9 788)	(9 231)
Other operating expenses	(28 278)	(31 954)	(105 964)	(108 686)
Total operating expenses	(486 023)	(1 126 411)	(1 845 139)	(2 940 401)
Associated companies and joint ventures	36 466	7 541	72 320	(13 352)
Operating profit	48 561	127 831	198 225	300 898
Financial income	7 807	8 567	25 443	29 778
Financial expenses	2 574	1 021	(14 472)	(11 199)
Net financial expenses	10 381	9 588	10 971	18 579
Profit/(loss) before taxes	58 942	137 419	209 196	319 477
Income taxes	(12 321)	(29 100)	(32 240)	(74 800)
Net income	46 621	108 319	176 956	244 677
Other comprehensive income/expenses
Translation differences	(551)	346	567	1 796
Total comprehensive income/(loss) for the period	46 070	108 665	177 523	246 473
Net income for the period attributable to:
Non-controlling interests	11	10	42	44
Shareholders in Selvaag Bolig ASA	46 610	108 309	176 914	244 633
Total comprehensive income/(loss) for the period attributable to:
Non-controlling interests	11	10	42	44
Shareholders in Selvaag Bolig ASA	46 059	108 655	177 481	246 429
Earnings per share for net income/(loss) attributed to shareholders in Selvaag Bolig ASA:
Earnings per share (basic and diluted) in NOK	0.50	1.16	1.90	2.62

The consolidated financial information has not been audited

Statement of financial position

(figures in NOK 1 000)	Note	Q4 2024	Q3 2024	2023
ASSETS
Non-current assets
Goodwill		383 376	383 376	383 376
Property, plant and equipment		7 854	8 661	9 767
Right-of-use lease assets		31 961	4 702	10 295
Investments in associated companies and joint ventures		276 578	241 332	229 985
Loans to associated companies and joint ventures		173 614	189 520	161 314
Other non-current assets	7	561 213	530 971	408 503
Total non-current assets		1 434 596	1 358 562	1 203 240
Current assets
Inventories (property)	5, 7	3 257 790	3 106 494	3 199 454
Trade receivables		62 411	82 693	60 194
Other current receivables		20 541	14 242	25 001
Cash and cash equivalents		383 649	189 101	266 522
Total current assets		3 724 391	3 392 530	3 551 171
TOTAL ASSETS		5 158 987	4 751 092	4 754 411
EQUITY AND LIABILITIES
Equity attributed to shareholders in Selvaag Bolig ASA		2 385 368	2 336 908	2 299 126
Non-controlling interests		7 881	7 869	7 838
Total equity		2 393 249	2 344 777	2 306 964
LIABILITIES
Non-current liabilities
Pension liabilities			1 147
Deferred tax liabilities		2 086	73 689	1 147
Provisions		84 364	70 215	73 476
Other non-current liabilities	7	60 365	469 867	70 215
Non-current lease liabilities		456 496	2 014	385 745
		28 815	602 263	2 749
Non-current interest-bearing liabilities Total non-current liabilities		935 433	1 219 195	681 776
		1 567 559		1 215 108
Current liabilities
Current lease liabilities		3 059	2 780	8 181
Current interest-bearing liabilities		173 230	356 191	323 826
Current liabilities repurchase agreements and seller credits	7	504 450	396 799	404 610
Trade payables		132 500	112 362	73 094
Current tax payables		32 240	40 705	66 378
Other current non-interest-bearing liabilities		352 700	278 283	356 250
Total current liabilities		1 198 179	1 187 120	1 232 339
Total liabilities		2 765 738	2 406 315	2 447 447
TOTAL EQUITY AND LIABILITIES		5 158 987	4 751 092	4 754 411

The consolidated financial information has not been audited

Statement of changes in equity

	Share capital	Share premium account	Other paid in capital	Cumulative translation differences	Other reserves	Retained earnings	Equity attributed to shareholders in Selvaag Bolig ASA	Non controlling interests	Total equity
Equity at 1 January 2024	187 279	1 394 857	700 629	10 102	3 528	2 729	2 299 125	7 839 *	2 306 964
Transactions with owners:
Dividend	-	-	-	-	-	(93 640)	(93 640)	-	(93 640)
Share buy back	(1 344)	-	-	-	-	(21 692)	(23 036)	-	(23 036)
Employee share programme	1 594	-	-	-	-	23 844	25 438	-	25 438
Total comprehensive income/(loss) for the period:
Net income/(loss) for the period	-	-	-	-	-	176 914	176 914	42	176 956
Other comprehensive income/(loss) for the period	-	-	-	567	-	-	567	-	567
Equity at 31 December 2024	187 529	1 394 857	700 629	10 669	3 528	88 155	2 385 368	7 881 *	2 393 249
Equity at 1 January 2023	187 440	1 394 857	700 629	8 306	3 528	43 327	2 338 088	7 795 *	2 345 883
Transactions with owners:
Dividend	-	-	-	-	-	(281 163)	(281 163)	-	(281 163)
Share buy back	(1 832)	-	-	-	-	(25 697)	(27 529)	-	(27 529)
Employee share programme	1 671	-	-	-	-	21 629	23 300	-	23 300
Total comprehensive income/(loss) for the period:
Net income/(loss) for the period	-	-	-	-	-	244 633	244 633	44	244 677
Other comprehensive income/(loss) for the period	-	-	-	1 796	-	-	1 796	-	1 796
Equity at 31 December 2023	187 279	1 394 857	700 629	10 102	3 528	2 729	2 299 125	7 839 *	2 306 964

The consolidated financial information has not been audited.

* Non-controlling interests include tax from profits in companies subject to partnership taxation. Income taxes in the group do not include taxes from

tax subjects outside the Selvaag Bolig group.

Statement of cash flow

(figures in NOK 1 000)	Note	Q4 2024	Q4 2023	2024	2023
CASH FLOW FROM OPERATING ACTIVITIES
Profit/(loss) before taxes		58 942	137 419	209 196	319 477
Income taxes paid		(21 305)	(23 474)	(66 897)	(64 821)
Depreciation and amortisation		2 491	2 359	9 788	9 231
Share of profits/(losses) from associated companies
and joint ventures		(36 466)	(7 541)	(72 320)	13 352
Changes in inventories (property)	5	(86 124)	772 504	69 399	1 195 705
Changes in trade receivables		20 282	60 269	(2 217)	21 261
Changes in trade payables		20 138	23 236	59 406	(26 249)
Changes in other operating working capital assets		(34 988)	(38 522)	(25 942)	(89 573)
Changes in other operating working capital liabilities		30 230	(111 357)	(93 355)	(181 771)
Net cash flow from operating activities		(46 800)	814 892	87 058	1 196 613
CASH FLOW FROM INVESTMENT ACTIVITIES
Proceeds from sale of property, plant and equipment
and intangible assets		-	-	-	316
Purchases of PPE and intangible assets		179	(248)	(4 414)	(3 659)
Proceeds from sale of associated companies and
joint ventures		69	-	302	-
Purchases of associated companies and joint
ventures		-	-	(5 000)	-
Proceeds from sale of other investments and
repayment of loans		38 307	40 573	53 819	45 573
Purchases of other investments and loans		(16 470)	(18 050)	(46 470)	(97 904)
Dividends and disbursements from associated
companies and joint ventures		-	-	25 000	10 423
Net cash flow from investment activities		22 085 -	22 275 -	23 237	(45 251)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from borrowings	7	656 657	519 735	1 842 093	1 706 662
Repayments of borrowings	7	(418 261)	(1 244 945)	(1 660 156)	(2 796 129)
Interest payments		(11 346)	(49 365)	(68 406)	(108 061)
Repayments of lease liabilities		(2 045)	(1 965)	(8 180)	(7 861)
Dividends paid to equity holders of Selvaag Bolig ASA		-	-	(93 640)	(281 163)
Share buy back Selvaag Bolig ASA		(23 036)	(2 862)	(23 036)	(27 529)
Proceeds from disposal of shares Selvaag Bolig ASA		17 294	15 791	18 157	16 571
Net cash flow from financing activities		219 263	(763 610)	6 832	(1 497 510)
Net change in cash and cash equivalents		194 548	73 557	117 127	(346 148)
Cash and cash equivalents at start of period		189 101	192 965	266 522	612 670
Cash and cash equivalents at end of period		383 649	266 522	383 649	266 522

The consolidated financial information has not been audited

Selected notes to the quarterly financial statements

1. General information and accounting policies

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 has 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 2023.

The accounting policies applied in preparing these interim condensed consolidated financial statements are otherwise consistent with those applied in the group's consolidated financial statements for the year ended 31 December 2023.

2. Accounting judgements, estimates and assumptions

The preparation of interim financial information requires management to make judgements, estimates and assumptions which 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 which applied in the consolidated financial statements for the year ended 31 December 2023.

3. Transactions with related parties

See note 23 to the consolidated financial statements for 2023 for detailed information on related-party transactions in previous years.

4. Segment information

The main segment is defined as Housing 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 on the basis of expenses incurred relative to total estimated costs and sales rate. Operating revenue under the percentage of completion method also includes an estimated profit element. The 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.

Fourth quarter 2024

	Housing
(figures in NOK 1 000)	development	Other	Total
Operating revenues	857 997	19 363	877 360
Project expenses	(701 196)	(3)	(701 199)
Other operating expenses	(10 849)	(69 314)	(80 163)
EBITDA (percentage of completion, NGAAP)	145 952	(49 954)	95 998
Reconciliation EBITDA to operating profit (loss)
EBITDA (percentage of completion)	145 952	(49 954)	95 998
Sales revenues (adjustment effect of percentage of completion)	(856 604)	-	(856 604)
Sales revenues (completed contract)	477 362	-	477 362
Project expenses (adjustment effect of percentage of completion)	715 461	-	715 461
Project expenses (completed contract)	(419 810)	-	(419 810)
Lease expenses	-	2 180	2 180
Depreciation and amortisation	-	(2 491)	(2 491)
Share of income (losses) from associated companies and joint
ventures	36 466	-	36 466
Other gain (loss), net	-	-	-
Operating profit (loss), (IFRS)	98 826	(50 265)	48 561
Units under construction	829	N/A	N/A
Units delivered	172	N/A	N/A

Fourth quarter 2023

	Housing
(figures in NOK 1 000)	development	Other	Total
Operating revenues	548 357	16 347	564 704
Project expenses	(450 511)	8 617	(441 894)
Other operating expenses	(15 764)	(67 596)	(83 360)
EBITDA (percentage of completion, NGAAP)	82 082	(42 632)	39 450
Reconciliation EBITDA to operating profit (loss)
EBITDA (percentage of completion)	82 082	(42 632)	39 450
Sales revenues (adjustment effect of percentage of completion)	(489 709)	-	(489 709)
Sales revenues (completed contract)	1 171 708	-	1 171 708
Project expenses (adjustment effect of percentage of completion)	394 746	-	394 746
Project expenses (completed contract)	(995 676)	-	(995 676)
Lease expenses	-	2 130	2 130
Depreciation and amortisation	-	(2 359)	(2 359)
Share of income (losses) from associated companies and joint
ventures	7 541	-	7 541
Other gain (loss), net	-	-	-
Operating profit (loss), (IFRS)	170 692	(42 861)	127 831
Units under construction	784	N/A	N/A
Units delivered	276	N/A	N/A

At 31 December 2024

	Housing
(figures in NOK 1 000)	development	Other	Total
Operating revenues	2 471 400	72 189	2 543 589
Project expenses	(2 059 365)	(137)	(2 059 502)
Other operating expenses	(44 111)	(219 631)	(263 742)
EBITDA (percentage of completion, NGAAP)	367 924	(147 579)	220 345
Reconciliation EBITDA to Operating profit (loss):
EBITDA (percentage of completion)	367 924	(147 579)	220 345
Sales revenues (adjustment effect of percentage of completion)	(2 290 705)	-	(2 290 705)
Sales revenues (completed contract)	1 718 161	-	1 718 161
Project expenses (adjustment effect of percentage of completion)	1 913 657	-	1 913 657
Project expenses (completed contract)	(1 434 483)	-	(1 434 483)
Lease expenses	-	8 719	8 719
Depreciation and amortisation	-	(9 788)	(9 788)
Share of profits (losses) from associated companies and joint
ventures	72 320	-	72 320
Other gain (loss), net	-	-	-
Operating profit (loss), (IFRS)	346 873	(148 648)	198 225
Units under construction	829	N/A	N/A
Units delivered	532	N/A	N/A

At 31 December 2023

	Housing
(figures in NOK 1 000)	development	Other	Total
Operating revenues	2 088 269	64 813	2 153 082
Project expenses	(1 695 426)	7 262	(1 688 164)
Other operating expenses	(48 143)	(214 383)	(262 526)
EBITDA (percentage of completion, NGAAP)	344 700	(142 308)	202 392
Reconciliation EBITDA to operating profit (loss):	-
EBITDA (percentage of completion)	344 700	(142 308)	202 392
Sales revenues (adjustment effect of percentage of completion)	(1 954 173)	-	(1 954 173)
Sales revenues (completed contract)	3 055 744	-	3 055 744
Project expenses (adjustment effect of percentage of completion)	1 575 929	-	1 575 929
Project expenses (completed contract)	(2 564 935)	-	(2 564 935)
Lease expenses	-	8 524	8 524
Depreciation and amortisation Share of profits (losses) from associated companies and joint	-	(9 231)	(9 231)
ventures	(13 352)	-	(13 352)
Other gain (loss), net	-	-	-
Operating profit (loss), (IFRS)	443 913	(143 015)	300 898
Units under construction	784	N/A	N/A
Units delivered	655	N/A	N/A

5. Inventory - property

The group has property which comprises land and buildings intended for sale in the ordinary course of business or 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)	Q4 2024	Q3 2024	2023
Land (undeveloped)	641 107	637 887	667 305
Work in progress	2 150 152	2 038 167	1 959 180
Completed units	466 531	430 440	572 969
Carrying amount	3 257 790	3 106 494	3 199 454

6. Project expenses and EBITDA

The group expenses all directly attributable costs in construction projects as project expenses. These include financial expenses. Below is a specification showing the project cost and EBITDA including and excluding financial expenses.

(figures in NOK 1 000)	Q4 2024	Q4 2023	2024	2023
Project expenses	(405 548)	(1 042 822)	(1 580 327)	(2 677 166)
Finance expenses	(35 729)	(72 432)	(112 201)	(141 551)
Other project expenses	(369 819)	(970 390)	(1 468 126)	(2 535 615)
(figures in NOK 1 000)	Q4 2024	Q4 2023	2024	2023
EBITDA1	51 052	130 190	208 013	310 129
EBITDA margin	10.2%	10.4%	10.6%	9.5%
EBITDA adjusted2	86 781	202 622	320 214	451 680
EBITDA margin adjusted	17.4%	16.3%	16.2 %	13.9%

1 EBITDA is operating profit before interest, taxes, depreciation, amortisation and other gains (losses).

2 EBITDA adjusted excludes financial expenses included in project costs.

The EBITDA margin is affected positively by presenting results from joint ventures net and excluding them from turnover. For more information, see note 8 on proportional

consolidation, which presents the effect if the joint ventures had been included with their share of turnover, in other words, not presented net.

7. Collaboration with Urban Property

With effect from January 2020, large parts of the available land portfolio for Selvaag Bolig (SBO) have been owned by Urban Property (UP). The companies are long-term and strategic partners. UP is owned by Oslo Pensjonsforsikring AS with a 40 per cent holding, Equinor Pensjon with 30 per cent, Selvaag AS with 20 per cent and Rema Etablering Norge AS with 10 per cent. The Selvaag AS holding in UP makes the latter a related party to SBO pursuant to the IFRS, but not according to the Norwegian Public Limited Companies Act. See note 26 to the consolidated accounts for 2020 for detailed information on the transaction.

UP is a financially sound, well-capitalised and predictable partner. The collaboration agreement includes the following elements:

• UP has a pre-emptive right to buy new land SBO wants to develop.
• SBO has an option to buy the land from UP.
• The land is purchased in stages by SBO at its original acquisition price plus an annual option premium of Nibor plus 3.75 per cent. In addition comes a transaction fee, which is 0.5 per cent when UP buys property from the landowner and 2.0 per cent when SBO buys from UP.
• SBO pays 50 per cent of the purchase price to UP on taking over a property (when construction starts) and 50 per cent on completion of the project.
• If SBO decides not to exercise the option on a land plot, there is a 48-month option premium (break fee).
• The agreement includes financial covenants, see note 11.

The transaction covered properties which were divided into Portfolios A, B and C. Portfolio A was converted to portfolio C with effect from January 2021 following a renegotiation of the collaboration agreement between the parties.

Portfolio B

In accounting terms, Portfolio B is treated as a financing arrangement because SBO retains control of these properties. This means that the carrying amount of Portfolio B remains unchanged as inventory after the transaction, while the consideration from the sale of Portfolio B has been recognised as a liability for repurchase agreements (to UP) in the SBO balance sheet.

The option premium related to the properties in Portfolio B is paid quarterly. These premiums are treated for accounting purposes in the same way as interest charges on land loans. They are recognised in the balance sheet as part of inventory and expensed as cost of sales when completed residential units are delivered. Option premiums paid and capitalised for land in Portfolio B amounted to NOK 4.8 million in the fourth quarter (NOK 6.0 million). For the year, option premiums paid and capitalised were NOK 20.2 million (NOK 21.9 million). SBO can cancel the option at any given time on payment of a fixed break fee corresponding to 48 months of option premiums for the property. SBO pays 50 per cent of the purchase price to UP on taking over a property and 50 per cent on completion of the project.

Portfolio C

Portfolio C covers properties that the group has the right or obligation to purchase from UP in the future. An agreement has been entered into which means that UP acquires rights and obligations corresponding to those currently held by the group in relation to the landowners. SBO will remain the formal counterparty to the present landowners. The agreement covers agreements on future property acquisitions where UP will be the formal counterparty to the landowners. After UP has acquired a property, SBO will have an option to buy it back on specified terms.

Fifty per cent of the option premium in Portfolio C falls due when SBO acquires the land from UP, with the remainder falling due on completion of the relevant project. Starting on 1 January 2025, 50 per cent of the new option premium in portfolio C is current payable on a quarterly basis. Provision for accrued option premiums is made quarterly in SBO's consolidated accounts, as other non-current assets and other non-current liabilities, respectively. The asset is reclassified as inventory upon the land takeover, while the remaining unpaid option premium is reclassified to short-term liabilities for repurchase agreements and seller credits. Provision for and capitalisation of option premiums for Portfolio C amounted to NOK 55.3 million in the fourth quarter (NOK 48.4 million). For the year, option premiums paid and capitalised were NOK 213.7 million (NOK 166.4 million). Accumulated provisions and capitalisation at 31 December totalled NOK 498.3 million (NOK 337.6 million).

SBO can cancel the option at any given time in exchange for a break fee comprising the accumulated increase in the repurchase price for the property plus a fixed supplement corresponding to 48 months of growth in the repurchase price. When exercising an option, SBO pays 50 per cent of the purchase price to UP upon takeover of the property and 50 per cent upon project completion.

During the quarter, SBO purchased two land plots from Urban Property for a total of NOK 223.4 million. SBO did not repay seller credits in the fourth quarter (NOK 89.6 million).

Debt related to repurchase agreements and seller credits was NOK 504.5 million at 31 December 2024 (NOK 404.6 million). Of this, NOK 230.3 million was portfolio B (NOK 292.6 million) and NOK 274.2 million was seller credits (NOK 112.0 million).

8. Proportional consolidation related to associate companies and joint ventures – pro forma information

Selvaag Bolig executes a number of its housing projects in collaboration with other parties, often on a 50-50 basis. These are recognised in the statement of comprehensive income pursuant to the IFRS using the equity method, where Selvaag Bolig's share of the net result is presented as share of profit/(loss) from associated companies and joint ventures. Selvaag Bolig finds that the share of collaboration projects is increasing and that, in this context, it is relevant to provide information on how the

statement of comprehensive income would have appeared were the equity interest in collaboration projects to be consolidated.

In the table below, the statement of comprehensive income pursuant to the IFRS has been restated to show the proportional consolidation of associated companies and joint ventures in accordance with Selvaag Bolig's equity interest in collaboration projects.

Statement of proportional consolidation		Q4 2024			Q4 2023
			Pro forma			Pro forma
		Adj share	gross		Adj share	gross
(figures in NOK 1 000)	IFRS	Assoc/JV gross	Assoc/JV	IFRS	Assoc/JV gross	Assoc/JV
Revenues	477 653	417 773	895 426	1 229 583	143 039	1 372 622
Other revenues	20 465	2 157	22 622	17 118	2 673	19 791
Total operating revenues	498 118	419 930	918 048	1 246 701	145 712	1 392 413
Project expenses	(405 548)	(347 316)	(752 864)	(1 042 822)	(121 364)	(1 164 186)
Salaries and personnel costs	(49 706)	(282)	(49 988)	(49 276)	(265)	(49 541)
Depreciation and amortisation	(2 491)	(1 110)	(3 601)	(2 359)	(1 100)	(3 459)
Other operating expenses	(28 278)	(7 496)	(35 774)	(31 954)	(5 709)	(37 663)
Total operating expenses	(486 023)	(356 203)	(842 226)	(1 126 411)	(128 438)	(1 254 849)
Associated companies and joint ventures	36 466	(36 466)	-	7 541	(7 541)	-
Other gains (losses), net	-	-	-	-	-	-
Operating profit	48 561	27 261	75 822	127 831	9 733	137 564
Financial income	7 807	940	8 747	8 567	450	9 017
Financial expenses	2 574	(17 207)	(14 633)	1 021	(3 909)	(2 888)
Net financial expenses	10 381	(16 267)	(5 886)	9 588	(3 459)	6 130
Profit/(loss) before taxes	58 942	10 994	69 936	137 419	6 275	143 694
Income taxes	(12 321)	(10 993)	(23 314)	(29 100)	(6 274)	(35 374)
Net income	46 621	-	46 621	108 319	-	108 319
EBITDA 1	51 052	28 370	79 422	130 190	10 833	141 023
EBITDA margin1	10.2%	N/A	8.7%	10.4%	N/A	10.1%
EBITDA adj2	86 781	71 682	158 463	202 622	16 745	219 367
EBITDA margin adj2	17.4%	N/A	17.3%	16.3%	N/A	15.8%

1 EBITDA is operating profit before interest, taxes, depreciation, amortisation and other gains (losses).

2 EBITDA adjusted excludes financial expenses included in project costs. See note 6.

Q4 2024

Statement of proportional consolidation		12M 2024		12M 2023
			Pro forma			Pro forma
		Adj share	gross		Adj share	gross
(figures in NOK 1 000)	IFRS	Assoc/JV gross	Assoc/JV	IFRS	Assoc/JV gross	Assoc/JV
Revenues	1 895 375	1 118 134	3 013 509	3 186 235	195 802	3 382 037
Other revenues	75 669	8 650	84 319	68 416	9 347	77 763
Total operating revenues	1 971 044	1 126 784	3 097 828	3 254 651	205 149	3 459 800
Project expenses	(1 580 327)	(970 533)	(2 550 860)	(2 677 166)	(179 330)	(2 856 496)
Salaries and personnel costs	(149 060)	(999)	(150 059)	(145 318)	(1 026)	(146 344)
Depreciation and amortisation	(9 788)	(4 440)	(14 228)	(9 231)	(4 042)	(13 273)
Other operating expenses	(105 964)	(23 576)	(129 540)	(108 686)	(20 938)	(129 624)
Total operating expenses	(1 845 139)	(999 547)	(2 844 686)	(2 940 401)	(205 335)	(3 145 736)
Associated companies and joint ventures	72 320	(72 320)	-	(13 352)	13 352	-
Other gains (losses), net	-	-	-	-	-	-
Operating profit	198 225	54 918	253 143	300 898	13 166	314 064
Financial income	25 443		27 913	29 778		31 132
		2 470			1 354
Financial expenses	(14 472)	(30 781)	(45 253)	(11 199)	(13 375)	(24 574)
Net financial expenses	10 971	(28 311)	(17 340)	18 579	(12 021)	6 559
Profit/(loss) before taxes	209 196	26 607	235 803	319 477	1 146	320 623
Income taxes	(32 240)	(26 607)	(58 847)	(74 800)	(1 146)	(75 946)
Net income	176 956	-	176 956	244 677	-	244 677
EBITDA 1	208 013	59 357	267 370	310 129	17 208	327 337
EBITDA margin1	10.6%	N/A	8.6%	9.5%	N/A	9.5%
EBITDA adj2	320 214	162 166	482 380	451 681	25 087	476 768
EBITDA margin adj2	16.2%	N/A	15.6%	13.9%	N/A	13.8%

1 EBITDA is operating profit before interest, taxes, depreciation, amortisation and other gains (losses).

2 EBITDA adjusted excludes financial expenses included in project costs. See note 6.

9. Additional information about percentage of completion (NGAAP)

In the operational reporting, the percentage of completion method (NGAAP) is used for revenue and profit recognition, which differs from IFRS, where profit is recognised upon delivery. See note 4 for a more detailed description. Below is a statement of results based on the percentage of completion method (NGAAP). Additionally, a proportional consolidation of associated companies and joint ventures under the percentage of completion method (NGAAP) is shown, based on the same method described in note 8.

(figures in NOK 1 000)	Q4 2024	Q4 2023	2024	2023
Revenues	856 619	547 586	2 468 025	2 084 666
Other revenues	20 741	17 118	75 564	68 416
Total operating revenues	877 360	564 704	2 543 589	2 153 082
Project expenses	(701 199)	(441 894)	(2 059 502)	(1 688 164)
Salaries and personnel costs	(49 706)	(49 276)	(149 060)	(145 318)
Depreciation and amortisation	(626)	(494)	(2 330)	(1 773)
Other operating expenses	(30 457)	(34 084)	(114 682)	(117 208)
Total operating expenses	(781 988)	(525 748)	(2 325 574)	(1 952 463)
Associated companies and joint ventures	8 578	7 925	26 651	26 632
Other gains (losses), net	-	-	-	-
Operating profit	103 950	46 881	244 666	227 251
Financial income	7 807	8 564	25 443	29 775
Financial expenses	(29 021)	(10 325)	(74 401)	(74 078)
Net financial expenses	(21 214)	(1 761)	(48 958)	(44 303)
Profit/(loss) before taxes	82 736	45 120	195 708	182 948

The consolidated financial information has not been audited

Statement of proportional consolidation		Q4 2024		Q4 2023
			Pro forma			Pro forma
		Adj share	gross		Adj share	gross
(figures in NOK 1 000)	NGAAP	Assoc/JV gross	Assoc/JV	NGAAP	Assoc/JV gross	Assoc/JV
Revenues	856 619	182 399	1 039 018	547 586	160 276	707 862
Other revenues	20 741	2 966	23 707	17 118	2 673	19 791
Total operating revenues	877 360	185 365	1 062 725	564 704	162 948	727 652
Project expenses	(701 199)	(134 893)	(836 092)	(441 894)	(135 541)	(577 435)
Salaries and personnel costs	(49 706)	(282)	(49 988)	(49 276)	(265)	(49 541)
Depreciation and amortisation	(626)	(1 110)	(1 736)	(494)	(1 100)	(1 594)
Other operating expenses	(30 457)	(7 496)	(37 953)	(34 084)	(2 617)	(36 701)
Total operating expenses	(781 988)	(143 780)	(925 768)	(525 748)	(139 523)	(665 271)
Associated companies and joint ventures	8 578	(8 578)	-	7 925	(7 925)	-
Other gains (losses), net	-	-	-	-	-	-
Operating profit	103 950	33 007	136 957	46 881	15 500	62 381
EBITDA 1	95 998	42 695	138 693	39 450	24 525	63 975
EBITDA margin1	10.9%	N/A	13.1%	7.0%	N/A	8.8%

1 EBITDA is operating profit before interest, taxes, depreciation, amortisation, associated companies and joint ventures and other gains (losses).

Statement of proportional consolidation		12M 2024		12M 2023
			Pro forma			Pro forma
		Adj share	gross		Adj share	gross
(figures in NOK 1 000)	NGAAP	Assoc/JV gross	Assoc/JV	NGAAP	Assoc/JV gross	Assoc/JV
Revenues	2 468 025	732 238	3 200 263	2 084 666	581 972	2 666 638
Other revenues	75 564	8 599	84 163	68 416	9 347	77 763
Total operating revenues	2 543 589	740 837	3 284 426	2 153 082	591 319	2 744 401
Project expenses	(2 059 502)	(598 353)	(2 657 855)	(1 688 164)	(489 046)	(2 177 210)
Salaries and personnel costs	(149 060)	(999)	(150 059)	(145 318)	(1 026)	(146 344)
Depreciation and amortisation	(2 330)	(4 440)	(6 770)	(1 773)	(4 042)	(5 815)
Other operating expenses	(114 682)	(23 576)	(138 258)	(117 208)	(17 846)	(135 054)
Total operating expenses	(2 325 574)	(627 367)	(2 952 941)	(1 952 463)	(511 960)	(2 464 423)
Associated companies and joint ventures	26 651	(26 651)	-	26 632	(26 632)	-
Other gains (losses), net	-	-	-	-	-	-
Operating profit	244 666	86 819	331 485	227 251	52 728	279 979
EBITDA 1	220 345	117 910	338 255	202 392	83 401	285 793
EBITDA margin1	8.7%	N/A	10.3%	9.4%	N/A	10.4%

1 EBITDA is operating profit before interest, taxes, depreciation, amortisation, associated companies and joint ventures and other gains (losses).

10. Alternative Performance Measures (APMs)

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and as endorsed by the EU. In addition, Selvaag Bolig presents several Alternative Performance Measures (APMs). APMs are performance measures not defined in the applicable financial reporting framework of IFRS and are therefore not necessarily comparable or equal to the calculation of similar measures used by other companies. The APMs are reported in addition to, but are not substitutes for, the group's consolidated financial statements, prepared in accordance with IFRS. Below we present an overview of which alternative performance measures are included in the quarterly report, why they are used and how they are defined:

EBITDA:

EBITDA is a measure of operating profit before interest, tax, depreciation, amortisation and other gains (losses).

The basis for the calculation of this are the consolidated financial statements according to IFRS, see the table below. The group presents this because group management believes that EBITDA gives useful additional information about the profitability of the group's operations. EBITDA is used by many companies and is well suited to comparing profitability between companies.

Adjusted EBITDA:

Adjusted EBITDA is EBITDA, as defined above, less financial expenses which are a part of project costs, see the table below. Since IFRS requires that financial expenses that are capitalised as a part of inventory must be expensed as costs of goods on delivery, adjusted EBITDA is presented to show the profitability of the group's operations before financial expenses. The group presents this because group management believes that adjusted EBITDA provides useful additional information about the underlying profitability of the group's operations.

(figures in NOK 1 000)	Q4 2024	Q4 2023	2 024	2023
Operating profit	48 561	127 831	198 225	300 898
Depreciation and amortisation	2 491	2 359	9 788	9 231
EBITDA	51 052	130 190	208 013	310 129
Finance expenses1	35 729	72 432	112 201	141 551
EBITDA adjusted	86 781	202 622	320 214	451 680
1

See note 6

EBITDA (percentage of completion, NGAAP):

EBITDA (percentage of completion, NGAAP) is the operating profit before interest, tax, depreciation, amortisation, profits from associated companies and joint ventures and other gains (losses). The basis for this is from the group's segment reporting where the percentage of completion method, which is the completion ratio multiplied by sales ratio, is used, see note 4. The group presents this because group management believes that EBITDA (percentage of completion, NGAAP) gives

important additional information about the underlying value creation trends in the group.

Net interest-bearing debt:

Net interest-bearing debt is the sum of interest-bearing debt less cash and cash equivalents, see table on page 5. The group presents this because it believes it to be a useful indicator of the group's debt, financial flexibility and capital structure.

11. Financial covenants

The collaboration agreement with Urban Property, as described in note 7, includes the following financial covenants:

• 1) Equity must be greater than NOK 1 500 million.
• 2) Debt ratio must be below 50 per cent. Debt ratio is defined as: Net debt / (Net debt + equity).
• 3) Net debt / rolling 12-month EBITDA must be below 3.
• 4) Maximum 2.5 year accumulated, unpaid option premium. This consists of three elements multiplied with each other: (Lowest of market value or acquisition price of land plots in UP) times (annual option premium which is 3-month NIBOR + 3.75 per cent) times 2.5.

The calculation of net debt shall exclude construction loans and Selvaag Bolig's balance sheet debt related to Portfolio B. At the same time, the accumulated accrued option premium and seller credits shall be included in the calculation.

On a breach of financial covenants, Selvaag Bolig must receive approval from UP for dividend and other distributions until the covenants once again are met. If there is still a breach of covenants after six months, the option premium increases by 25 basis points until the covenants again are met.

Selvaag Bolig and Urban Property have renegotiated financial covenants in the collaboration agreement between the parties. From 1 January 2025 the following new covenants will apply:

• 1) Equity must be greater than NOK 1 800 million.
• 2) Debt ratio must be below 40 per cent. Debt ratio is defined as: Net debt / (Net debt + equity).
• 3) Net debt / rolling 12-month earnings before depreciation and tax according to NGAAP must be below 3.
• 4) Maximum 2.5 year accumulated, unpaid option premium. This consists of three elements multiplied with each other: (Lowest of market value or acquisition price of land plots in UP) times (annual option premium which is 3-month NIBOR + 3.75 per cent) times 2.5.
• 5) Selvaag Bolig must have at least 500 units in production, calculated as an average over the last 12 months. For joint ventures, Selvaag Bolig's share of the projects is used.
• 6) SBO must have a sales ratio of at least 60 per cent for units in production.

7) Outstanding seller credits must at the most be equal to 50 per cent of the equity in SBO and SBO must have free liquidity available, including available credit facilities, to cover 10 per cent of outstanding seller credits.

In the calculation of net debt in covenant number 2, construction loans and debt in portfolio B shall be excluded from Selvaag Bolig's balance sheet. At the same time, the accumulated accrued option premium and seller credit shall be included in the calculation.

In the calculation of net debt in covenant number 3, construction loans, seller credits, loans on completed units and debt in portfolio B shall be excluded from Selvaag Bolig's balance sheet. At the same time, the accumulated accrued option premium shall be included in the calculation.

On a breach of financial covenants, Selvaag Bolig must receive approval from UP for dividend and other distributions until the covenants once again are met. If there is a breach of covenants for three months, the option premium increases by 25 basis points until the covenants again are met. On a breach of covenants, the company's purchase of own shares for the employee share programme are excluded from the rule about approval of dividends or other distributions from Selvaag Bolig.

Selvaag Bolig ASA has a credit facility agreement of NOK 300 million with DNB, which matures in December 2027. No drawings had been made against this facility at 31 December 2024. The agreement includes financial covenants with the following requirements:

• The equity ratio must be at least 25 per cent.
• The average sales ratio for units in production must be at least 60 per cent. If the sales ratio is between 60 and 65 per cent, the lender must give its approval for the loan facilities to be drawn on, and the margin increases by 50 basis points.

For further information, please contact: Sverre Molvik, CEO Selvaag Bolig ASA Telephone: +47 401 00 585, e-mail: smo@selvaagbolig.no

About Us

Selvaag Bolig ASA is a residential development company that manages the entire value chain from acquisition of land to completed residential and urban areas. The company represents a continuation of Selvaag's 75-year history and experience and has several thousand homes under development in growth areas in and around the largest cities in Norway and Sweden. Selvaag Bolig offers a broad variety of housing types, including the lifestyle concept Selvaag Pluss®, which features homes with shared spaces and services.

www.selvaagboligasa.no/eng