Selvaag Bolig ASA

Earnings Release • Nov 14, 2018

Selvaag Bolig ASA: Q3 2018: Good outlook for results

Selvaag Bolig ASA: Q3 2018: Good outlook for results

Selvaag Bolig had operating revenues of NOK 1.7 billion in the first nine months

of 2018 and forecasts a record number of homes delivered in the fourth quarter.

"We've had a good year so far, and results for the third quarter are a

significant improvement on the same period of last year. We're now on a par with

2017 for both sales and results," says acting CEO Olav H Selvaag. "

"Viewed in isolation, the third quarter had relatively few deliveries, but we

have guided that a record number of homes are set to be completed in the fourth

quarter. This means that value creation for the year as a whole will be very

good."

At 30 September, Selvaag Bolig had a net total of 1 488 homes under construction

with a combined sales value of NOK 6.9 billion. Seventy-four per cent of the

units are already sold.

"These homes will be delivered over the next three years," says Selvaag. "We

also believe in a good and stable market in the time to come, which will provide

the basis for continued growth and good results in both the short term and the

longer perspective."

Third quarter of 2018 (2017)

* 1 488 homes net under construction (1 582) with a combined sales value of

NOK 6 908 million (NOK 7 047 million)

* 74 per cent of homes under construction (78 per cent) sold at 30 September

* 96 per cent of the homes due for completion in 2018 sold

* IFRS: Operating revenues of NOK 473 million (NOK 379 million), EBITDA

adjusted for financial expenses of NOK 85 million (NOK 45 million),

corresponding to a margin of 17.9 per cent (11.8 per cent)

* Earnings per share: NOK 0.61 (NOK 0.18)

* NGAAP**: Operating revenues of NOK 706 million (NOK 498 million), EBITDA of

NOK 155 million (NOK 103 million), corresponding to a margin of 21.9 per

cent (20.7 per cent)

* Gross sales* were 201 homes (207) with a sales value of NOK 861 million (NOK

843 million)

* Net sales were 182 homes (178) with a sales value of NOK 771 million (NOK

684 million)

* Net construction starts for 102 homes (77) and net deliveries of 126 units

to buyers (75)

First nine months of 2018

* Gross sales amounted to 619 homes (632) with a sales value of NOK 2 509

million (NOK 2 867 million)

* Net sales were 548 homes (533) with a sales value of NOK 2 215 million (NOK

2 316 million)

* IFRS**: Operating revenues of NOK 1 717 million (NOK 1 970 million), EBITDA

adjusted for financial expenses of NOK 314 million (NOK 383 million),

corresponding to a margin of 18.3 per cent (19.5 per cent)

* Earnings per share: NOK 2.21 (NOK 2.57)

* NGAAP: Operating revenues of NOK 1 942 million (NOK 2 282 million), EBITDA

of NOK 417 million (NOK 576 million), corresponding to a margin of 21.5 per

cent (25.3 per cent)

* Net construction starts for 438 homes (582) and net deliveries of 428 units

to buyers (382)

* Net sales include Selvaag Bolig's share of joint venture projects. Gross sales

include all homes in joint venture projects.

** Pursuant to the IFRS, all profit is recognised when the homes are delivered

to the buyer. Profit pursuant to the IFRS accordingly derives primarily from

homes which began to be built roughly two years ago.

*** The accounts pursuant to Norwegian generally accepted accounting principles

(NGAAP) utilise the percentage of completion method. This means that profits are

recognised on the basis of construction progress and sales in the projects. That

presents ongoing value creation in the company.

Further information from

Olav H Selvaag, CEO, Selvaag Bolig ASA

Telephone: +47 901 67 388, e-mail: ohs@selvaagbolig.no

Sverre Molvik, CFO, Selvaag Bolig ASA

Telephone: +47 401 00 585, e-mail: smo@selvaagbolig.no

Kristoffer Gregersen, vice president communications and market, Selvaag Bolig

ASA

Telephone: +47 957 75 593, e-mail: kgr@selvaagbolig.no

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 70-year history and experience, and

offers a broad variety of property types. The company is headquartered at Ullern

in Oslo.

www.selvaagboligasa.no/en

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.