Selvaag Bolig ASA

Earnings Release • May 22, 2024

Selvaag Bolig ASA: Good results and better market for new housing

Selvaag Bolig ASA: Good results and better market for new housing

Selvaag Bolig delivered 179 homes with satisfactory margins in the first

quarter.

"Considering the market conditions the results in the quarter were good. We

succeed, among other things, because we always enter into fixed-price

construction contracts that include pay and price increases. That gives us

good cost control," says CEO Sverre Molvik.

At the end of the quarter Selvaag Bolig had 671 homes with a total sales value

of NOK 3.95 billion under construction.

"The market for new housing has been challenging for the last two years with

high construction costs and high costs of living. We have nevertheless managed

to keep the order backlog at a level that ensures future results, and we now

experience that construction costs have stabilized and that the market has

improved.

"This will make it possible to start construction on more projects going

forward. Sales in the first quarter were the best since the first quarter of

2022," says Molvik.

During the quarter, Selvaag Bolig sold 139 homes net and now has approximately

400 homes for sale. If the market improvement continues, the company could

start sales of projects with a total potential of a further 700 homes

throughout the rest of the year.

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

(https://channel.royalcast.com/landingpage/hegnarmedia/20240522_3/) An English

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

website.

Highlights of the first quarter 2024 (first quarter 2023)

* Gross sales* amounted to 154 homes (152) with a sales value of

NOK 868 million (NOK 874 million)

* Net sales* were 139 homes (116) with a sales value of NOK 760 million

(NOK 658 million)

* Net construction starts for 123 homes (5), net completions of 236 (161) and

net deliveries of 179 to buyers (150)

* Net 671 homes under construction (1,097) with a combined sales value of

NOK 3,948 million (NOK 5,641 million)

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

* 126 (37) completed homes unsold at 31 March

* IFRS**: Operating revenues of NOK 628 million (NOK 734 million), EBITDA

adjusted for financial expenses NOK 106 million (NOK 110 million),

corresponding to a margin of 16.9 per cent (14.9 per cent)

* Earnings per share: NOK 0.60 (NOK 0.70)

* NGAAP***: Operating revenues of NOK 547 million (NOK 595 million), EBITDA of

NOK 45 million (NOK 72 million), corresponding to a margin of 8.2 per cent

(12 per cent)

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

Norwegian Housing Construction Act and the Tenancy Act in Sweden. 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

2024-05-22 07:00 CEST.