Selvaag Bolig ASA

Earnings Release • Feb 13, 2019

Selvaag Bolig ASA: full year and Q4 2018: Record profit and dividend

Selvaag Bolig ASA: full year and Q4 2018: Record profit and dividend

Selvaag Bolig had operating revenues of NOK 3 342 million for 2018, and an

EBITDA margin adjusted for financial costs of 24.8 per cent. Strong results and

a positive outlook mean that the company's board has proposed a dividend of NOK

2.50 per share for the second half of 2018. That gives a total dividend for the

year of NOK 4.50 per share.

"We did extremely well in 2018, with strong results and a high return for our

shareholders. That's the result of systematic work over time, strategic

prioritisation and effective project development," says CEO Olav H Selvaag.

"We're experiencing a good level of interest in the homes we have for sale, and

the market outlook is positive. We have attractive projects in areas with a high

demand for new housing. The present year has started well, and we're due to

launch several large projects in such locations as Follo, Asker, Lørenskog,

Trondheim and Bergen during 2019."

Selvaag Bolig currently has 1 449 homes under construction with a combined sales

value of NOK 6 712 million.

Highlights of 2018 (2017 in brackets)

·  IFRS: Operating revenues of NOK 3 342 million (NOK 3 229 million), EBITDA

adjusted for financial expenses of NOK 827 million (NOK 626 million),

corresponding to a margin of 24.8 per cent (19.4 per cent)

·  Earnings per share: NOK 6.14 (NOK 4.35)

·  NGAAP: Operating revenues of NOK 2 975 million (NOK 2 971 million), EBITDA

of NOK 612 million (NOK 680 million), corresponding to a margin of 20.6 per cent

(22.9 per cent)

·  External valuation of the land bank puts it at NOK 1 610 million above the

carrying amount

·  Net construction starts for 840 homes (799), net completions of 854 (690)

and net deliveries of 849 to buyers (737)

·  Net sales came to 696 homes (701)

Highlights of the fourth quarter of 2018

·  Net construction under way on 1 449 homes (1 463) with a combined sales

value of NOK 6 712 million (NOK 6 994 million)

·  66 per cent (73 per cent) of homes under construction sold at 31 December

·  70 per cent of homes due for completion in 2019 sold

·  IFRS: Operating revenues of NOK 1 625 million (NOK 1 259 million), EBITDA

adjusted for financial expenses of NOK 513 million (NOK 242 million),

corresponding to a margin of 31.6 per cent (19.3 per cent)

·  Earnings per share: NOK 3.93 (NOK 1.78)

·  NGAAP: Operating revenues of NOK 1 033 million (NOK 689 million), EBITDA of

NOK 196 million (NOK 104 million), corresponding to a margin of 18.9 per cent

(15.1 per cent)

·  Net construction starts for 402 homes (217), net completions of 441 (336)

and net deliveries of 421 to buyers (355)

·  Net sales of 148 homes (168)

·  The board proposes a dividend of NOK 2.50 per share for the second half of

2018. Total dividend for the year will thereby be NOK 4.50 per share (NOK 3.00)

* 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.

The results will be presented at 08:30 am CET. An English transcript of the

presentation will be made available on the company's website by 14 February.

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.