Selvaag Bolig ASA

Earnings Release • Feb 12, 2020

Selvaag Bolig ASA: full year and Q4 2019: record result and dividend

Selvaag Bolig ASA: full year and Q4 2019: record result and dividend

Selvaag Bolig had an operating profit of NOK 3 369 million and EBITDA, adjusted

for financial expenses, of NOK 959 million for 2019. That corresponded to a

margin of 28.5 per cent.

Good profitability and a positive outlook mean that the board proposes a

dividend of NOK 3 per share for the second half of 2019, giving a total pay-out

for the year of NOK 5 per share.

"We had a very good year in 2019, with strong results and a high level of return

to our shareholders," says Rolf Thorsen, CEO of Selvaag Bolig.

"We've just delivered an extraordinary dividend of NOK 22 per share in

connection with the sale of our land bank, and it's particularly gratifying to

be able to make another record pay-out this soon. Our goal remains to pay a high

and stable dividend twice a year."

Thorsen reports that profitability in the projects is good and that the company

is experiencing a good level of interest in the homes it has for sale.

"The housing market is good, particularly in the Oslo area where we have a

strong position. We started well in 2020, and have big projects in areas with a

big demand for housing.

"These include Follo, Asker, Lørenskog, Trondheim and Bergen. And we'll be

starting sales from a new project in Oslo towards the end of the year."

Selvaag Bolig currently has 1 504 homes under construction with a combined sales

value of NOK 7 155 million, and just over 700 residential units on sale.

Highlights of 2019 (2018 in brackets)

· IFRS: Operating revenues of NOK 3 369 million (NOK 3 342 million), EBITDA

adjusted for financial expenses of NOK 959 million (NOK 827 million),

corresponding to a margin of 28.5 per cent (24.8 per cent)

· Earnings per share: NOK 7.04 (NOK 6.14)

· NGAAP: Operating revenues of NOK 3 260 million (NOK 2 975 million), EBITDA

of NOK 770 million (NOK 612 million), corresponding to a margin of 23.6 per cent

(20.6 per cent)

· External valuation of the land bank puts it at NOK 1 501 million above the

carrying amount

· Net construction starts for 830 homes (840), net completions of 776 (854)

and net deliveries of 732 to buyers (849)

· Net sales came to 752 homes (696)

Highlights of the fourth quarter of 2019

· Net construction under way on 1 504 homes (1 449) with a combined sales

value of NOK 7 155 million (NOK 6 712 million)

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

· 75 per cent of homes due for completion in 2020 sold

· IFRS: Operating revenues of NOK 1 414 million (NOK 1 625 million), EBITDA

adjusted for financial expenses of NOK 398 million (NOK 513 million),

corresponding to a margin of 28.2 per cent (31.6 per cent)

· Earnings per share: NOK 3.00 (NOK 3.93)

· NGAAP: Operating revenues of NOK 1 062 million (NOK 1 033 million), EBITDA

of NOK 233 million (NOK 196 million), corresponding to a margin of 21.9 per cent

(18.9 per cent)

· Net construction starts for 248 homes (402), net completions of 254 (441)

and net deliveries of 214 to buyers (421)

· Net sales of 140 homes (148)

· The board proposes a dividend of NOK 3 per share for the second half of

2019. Total dividend for the year will thereby be NOK 5 per share (NOK 4.50)

* 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 13 February.

Further information from

Rolf Thorsen, CEO, Selvaag Bolig ASA

Telephone: +47 901 19 373, e-mail: rt@selvaagbolig.no

Kristoffer Gregersen, vice president communication and marketing, Selvaag Bolig

ASA

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

Sverre Molvik, CFO, Selvaag Bolig ASA

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

Selvaag Bolig ASA is a residential property developer which controls the entire

value chain from acquisition of land to sale of turnkey 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's head

office is at Ullern in Oslo.

www.selvaagboligasa.no

This information is subject to the disclosure requirements specified in section

5-12 of the Norwegian Securities Trading Act.