Selvaag Bolig ASA

Earnings Release • May 24, 2023

Selvaag Bolig ASA: Good results and order backlog of more than NOK 5.5 billion

Selvaag Bolig ASA: Good results and order backlog of more than NOK 5.5 billion

Selvaag Bolig delivered 150 homes in the first quarter. Revenues reached NOK

734 million, which was NOK 378 million higher than the same quarter of last

year. The EBITDA margin adjusted for financial expenses was 15 per cent.

"The results for the quarter were good, and the order backlog in the company

is still high," says CEO Sverre Molvik.

At the end of the quarter, Selvaag Bolig had 1 097 units with a combined sales

value of NOK 5.64 billion under construction.

"We have been through some challenging quarters where high construction costs

and the situation in the market have resulted in us starting construction on

fewer homes than we have completed. We have nevertheless a solid order backlog

which assures our results going forward. For the homes under construction, our

costs are fixed. They are thus not impacted by price and pay increases," says

Molvik.

Selvaag Bolig currently has 350 homes for sale and believes it will be

possible to start sales on more projects going forward.

"Interest rate hikes and the increased cost of living have led to longer sales

processes for new homes than earlier. At the same time, our sales have been

satisfactory, and the second quarter has started at the same level as the

first quarter.

There are still large requirements for new housing and the interest is there.

With construction costs starting to come down to acceptable levels, it will

make it possible again for us to launch sales on new projects also outside of

the Oslo-area. We are thus expecting a stable market going forward and we

anticipate that we will succeed in starting construction on more homes," says

Molvik.

The live webcast of the presentation can be viewed from 0830 here.

(https://channel.royalcast.com/landingpage/hegnarmedia/20230524_1/) An English

transcript of the presentation will be made available on the company's

website.

Highlights of the first quarter 2023 (first quarter 2022)

* Net construction under way on 1 097 homes (1 361) with a combined sales

value of NOK 5 641 million (NOK 7 034 million)

* 69 per cent (73 per cent) of homes under construction sold at 31 March

* 80 per cent of homes due for completion in 2023 are sold

* Pre-tax profit NOK 86 million (NOK 47 million)

* IFRS**: Operating revenues of NOK 734 million (NOK 356 million), EBITDA

adjusted for financial expenses NOK 110 million (NOK 61 million),

corresponding to a margin of 15 per cent (17 per cent)

* Earnings per share: NOK 0.70 (NOK 0.40)

* NGAAP***: Operating revenues of NOK 595 million (NOK 758 million), EBITDA of

NOK 72 million (NOK 106 million), corresponding to a margin of 12 per cent

(14 per cent)

* Net construction starts for 5 homes (113), net completions of 161 (74) and

net deliveries of 150 to buyers (77)

* Gross sales* amounted to 152 homes (271) with a sales value of NOK 874

million (NOK 1 401 million)

* Net sales were 116 homes (201) with a sales value of NOK 658 million (NOK 1

033 million)

* Units sold are sales contracts entered into with customers pursuant to the

Norwegian Housing Construction Act. In accordance with the IFRS, they are

recognised as income on delivery. 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.

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About Us

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, Trondheim and Stockholm.

Selvaag Bolig represents a continuation of Selvaag's 75-year history and

experience, and offers a broad variety of property types. The company is

headquartered at Ullern in Oslo.

www.selvaagboligasa.no/en

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This release was distributed by Kristoffer Gregersen, EVP communications and

sustainability, Selvaag Bolig ASA.

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For further information:

Sverre Molvik, CEO

Telephone: +47 40 10 05 85, e-mail: smo@selvaagbolig.no

Christopher Brunvoll, CFO

Telephone: +47 98 82 92 22, e-mail: chbr@selvaagbolig.no

(mailto:chrb@selvaagbolig.no)

Kristoffer Gregersen, EVP communications, sustainability and corporate

strategy,

Telephone: +47 95 77 55 93, e-mail: kgr@selvaagbolig.no

This information is subject to disclosure under the Norwegian Securities

Trading Act, §5-12. The information was submitted for publication at

2023-05-24 07:00 CEST.