Selvaag Bolig ASA

Investor Presentation • May 26, 2021

Oslo, 26 May 2021

Sverre Molvik, CEO Christopher Brunvoll, CFO

Q1 2021

2

Agenda

Highlights

Operational update

Financial update

Market

Outlook and summary

Highlights Q1 2021

• · Record high Q1 sales value
• · Units under production increased
• · Strong operational results considering few deliveries
• · Revised dividend policy
• · Christopher Brunvoll appointed new CFO

Key financials Q1 2021

* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses included in project costs. ** EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies.

Agenda

Highlights Operational update Financial update Market Outlook and summary

Operational news

Supreme court ruling

Background

The City of Oslo imposed an infrastructure contribution in connection with a Selvaag Bolig project. However, the measure bore no relationship to the development. Selvaag Bolig won its case in the supreme court against the government, represented by the Ministry of Local Government and Modernisation.

Implications

• Important clarification of the principles involved for all property developers in Norway.
• A developer can only be required to provide infrastructure if the need is caused by the development.
• Will provide greater predictability for existing properties in the portfolio and reduce risk related to land purchases.

Dividend Policy

DPS of minimum 60 per cent of net annual profit. No

• Revised policy Equity ratio minimum.
• Old policy Equity ratio of minimum 30 per cent.

DPS of minimum 40 per cent of net annual profit.

Land acquisitions

• Increased ownership at Sandsli 360 in Bergen from

50% to 100% (200 apartments in total).

Urban Property

• Cooperation matured and according to plan.

Sales value and units sold

Note: Sales value is adjusted for Selvaag Bolig's share in joint ventures.

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.

Rolling sales value and units sold

Note: Sales value is adjusted for Selvaag Bolig's share in joint ventures.

*Total columns show Selvaag Bolig's gross sales. **Columns excluding dotted areas show Selvaag Bolig's net sales.

Sales value 12 months rolling Units sold 12 months rolling

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.

Construction starts and completions

Construction starts and completions per quarter

Units

Note: Number of units are adjusted for Selvaag Bolig's share in joint ventures.

Units under construction and completions

Sales value units under construction Expected completions per quarter

• · Q1 2021: 82% of units under construction sold by Q1 2021

• · Q1 2021: 92% of construction volume in Greater Oslo Area*

• · Expected completions for the full year 2021: 867 units

• · 93% of 2021 completions sold by Q1 2021

Note: Sales value and number of units are adjusted for Selvaag Bolig's share in joint ventures. * Includes: Oslo, Lørenskog, Follo, Tønsberg, Asker.

Agenda

Highlights Operational update Financial update Market Outlook and summary

Income statement highlights Q1 2021 (IFRS)

Operating revenues (IFRS)

** EPS adjusted for other gains of NOK 11.01.

• 10 units from share of JVs (74)
• · Revenues NOK 568m (209)
• Other revenues NOK 15m (13)
• · Project costs NOK 401m (134)
• Of which NOK 11m is interest (7)
• · Other costs NOK 57m (54)
• · Adjusted EBITDA* NOK 129m (117)
• · EBITDA* NOK 118m (110)
• · EPS in the quarter NOK 0.82 (1.07**)

^* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding *Q1 2020 adjusted EBITDA margins of 56.1% excluding other gains of NOK 1 029m. financial expenses included in project costs.

Q1 2021 proforma figures including proportionate share of JV

* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is *Q1 2020 adjusted EBITDA margin of 26.0% excluding other gains of NOK 1 029m. excluding financial expenses included in project costs. The difference compared to reported EBITDA is due to interest, taxes, depreciation and amortization in JVs.

¹³ ** EPS adjusted for other gains of NOK 11.01.

Income statement highlights Q1 2021 (NGAAP)

^* Construction costs are exclusive of financial expenses in the segment reporting (NGAAP). Note: EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies.

^* Construction costs are exclusive of financial expenses in the segment reporting (NGAAP).

Project margin development

NOK million

^** Project margins are exclusive of overhead costs.

Cash flow development Q1 2021

NOK million

Note: Amounts < NOK -20m < NOK 20m are excluded from the cash flow overview.

• · Cash flow from operations negative at NOK 88m mainly due to paid taxes and increased working capital
• · Cash flow from investing activities negative at NOK 6m
• · Cash flow from financing activities negative at NOK 94m mainly due to net repayments of construction loans

698

92

Net change in borrowings

Cash and cash equivalents at 31 March 2021

Balance sheet highlights Q1 2021

Balance sheet composition

Assets Equity and Liabilities

	NOK million
· Book value of equity NOK 26.7 per share	7 000
- Equity ratio 41.4%
· Changes from Q4 2020:	6 000	Non-current assets
- Inventories increased by NOK 232m	5 000
- Trade and Other receivables increased by	4 000
NOK 19m	3 000	Current assets
- Cash decreased by NOK 187m
· Prepayments from customers represents	2 000
NOK 276m of other current non-interest	1 000
bearing liabilities	0	Cash

Inventories (property) Q1 2021

Q1 21 vs Q4 20 Inventory value development

· Land value up NOK 99m - Mainly due to consolidation of former JV · Work in progress up NOK 72m - Mainly due to construction starts · Finished goods up NOK 61m - Due to completions not delivered

Note: UP transaction completed in Q12020. Land bank reduction of NOK 657 million booked

NOK million

Debt structure

		Drawn at 31.3.21	Interest rate
	Loan facility	(NOKm)	margin*
1	Construction loan facilities from a range of Nordic credit institutions	1 534	1.75% - 2.60%
2	Land loans Urban Property**	661	3.75%***
3	Land loan facilities from a range of Nordic credit institutions	249	2.00% - 2.50%
4	NOK 150 million revolving credit facility from DNB maturing in 2023	0	2.90% - 3.40%
5	NOK 150 million working capital facility from DNB with annual renewal	0	2.10%
6	NOK 300 million infrastructure facility maturing in 2024	0	2.70%

Total Q1 2021 net interest-bearing debt NOK 1 746 million Total Q4 2020 net interest-bearing debt NOK 1 583 million

Interest-bearing debt at 31.3.21

NOK million

* Margin to 3m NIBOR.

** Repurchase agreements portfolio B.

*** + 2.00% fee at property repurchase.

* Repurchase agreements portfolio B.

Return on equity (IFRS)

12 months rolling net income (NOKm) ROE (%)

* Net income attributable to shareholders in Selvaag Bolig ASA.

** Based on equity at the start of the period (attributed to shareholders in Selvaag Bolig ASA).

Q1 2020 Net income excluding Other gains of NOK 1 029m

Agenda

Highlights Operational update Financial update Market Outlook and summary

Estimated completions in Oslo well below forecasted need

Sources: Historic data: Statistics Norway (SSB), Forecasted housing completions: SA – Econ Nye Boliger, Forecasted housing need: Prognosesenteret. Note: Number of persons per household in Oslo: 1.90.

Note: Housing demand calculated on parameters such as number of persons per household, lag on housing development, housing demolition. Note: Completions exclusive of student- and senior housing.

* Estimates based on actual start and time of construction.

** Uncertainty due to project lead-time. Expected to increase as new projects come to market through 2021/2022.

Estimated completions in Viken ex Buskerud & Østfold

Sources: Historic data: Statistics Norway (SSB), Forecasted housing completions: SA – Econ Nye Boliger, Forecasted housing need: Prognosesenteret. Note: Number of persons per household in Oslo: 1.90.

Note: Housing demand calculated on parameters such as number of persons per household, lag on housing development, housing demolition. Note: Completions exclusive of student- and senior housing.

* Estimates based on actual start and time of construction.

** Uncertainty due to project lead-time. Expected to increase as new projects come to market through 2021/2022.

Newbuild market update

Source: SA - ECON Nye Boliger.

* Adjusted for temporary withdrawals or cancellations during the period.

Newbuild market update

Source: SA - ECON Nye Boliger.

* Adjusted for temporary withdrawals or cancellations during the period.

Oslo second-hand market update

Source: Eiendomsverdi.

Bergen second-hand market update

Source: Eiendomsverdi.

Trondheim second-hand market update

Source: Eiendomsverdi.

Stavanger-area* second-hand market update

Source: Eiendomsverdi.

* Includes Stavanger, Sola, Sandnes, Randaberg.

Regional price* development 1.1-30.4, 2010-21

Source: Eiendom Norge.

* Nominal price change.

** Includes Stavanger, Sola, Sandnes, Randaberg.

Bergen

Stavanger area**

Shift in demographics trigger new housing needs

Source: Statistics Norway.

* Estimated annual growth for the 2020-25 period.

** Number of persons per household in Norway.

Change in needs calls for new concepts

Selvaag Pluss

• Lifestyle concept
• Attractive common areas
• Professional hosting services
• Service offerings and good neighbourliness, make every day living easier
• Guestrooms for family and friends
• Work-out- and fitness centre

Selvaag City

• Urban lifestyle concept with compact apartments
• Attractive common areas
• Professional hosting services
• Guestrooms for family and friends
• Work-out- and fitness centre

• Service offerings and good neighbourliness, make every day living easier

Already a leading provider through Selvaag Pluss

• A proven concept of housing with shared facilities and service
• Built 2 000 Pluss units since 2004
• Oslo, Drammen, Stavanger, Kristiansand, Bergen, Stockholm and Alfaz del Pi (Spain)
• 150 Pluss units to be sold in two current projects

• 3 000 Pluss units under development

• Lørenskog
• Asker
• Trondheim
• Stockholm

Upcoming projects 2022 to 2024

Fornebu | Greater Oslo

• · ~ 2 000 units total (50/50 JV)
• · ~ 500 Pluss units
• · Expected sales start: 2024

Bjerke | Oslo

• · ~ 1 200 units total
• · ~ 300 Pluss units
• · Expected sales start: 2024

Lørenskog stasjonsby | Greater Oslo

• · ~ 1 500 units total
• · ~ 250 Pluss units
• · ~ 850 units remaining for sale

Skårerbyen | Greater Oslo

• · ~ 1 100 units total
• · ~ 250 Pluss units
• · ~ 750 units remaining for sale

Upcoming large regional projects

Fredrikstad | Greater Oslo

• · ~ 1 500 units
• · ~ 400 Pluss units
• · Expected sales start: 2022/23

RingvePluss | Trondheim

• · ~ 600 units total
• · ~ 400 Pluss units

• · Expected sales start: 2021/22

• · ~ 600 units total

• · ~ 250 Pluss units
• · Expected sales start: 2023
• On 10 May, SBO had approximately 410 units for sale in Norway
• Planning for sale start of additional 415 units through Q3 2021

Sandsli | Bergen

• · ~ 600 units total
• · ~ 250 Pluss units
• · Sales start H2 2020

Agenda

Highlights Operational update Financial update Market Outlook and summary

Outlook

• · Continued positive market sentiment in Greater Oslo
• · Attractive projects for sale in all the markets where we operate

• · Targeting new areas for future growth

• · Record high Q1 sales value

• · Units under production increased
• · Strong operational results considering few deliveries
• · Revised dividend policy
• · Christopher Brunvoll appointed new CFO

Summary

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Return on equity (IFRS)

^* Net income attributable to shareholders in Selvaag Bolig ASA.

12 months rolling net income (NOKm) ROE (%)

** Based on equity at the start of the period (attributed to shareholders in Selvaag Bolig ASA).

12 months rolling net income (NOKm) ROE (%)

Q1 2020 Net income excluding Other gains of NOK 1 029m Q1 2020 Net income including Other gains of NOK 1 029m

Earnings and dividend per share since IPO

2.95 1.75 2.70 3.00 3.21 4.35 6.14 7.04 5.31 0.00 0.50 1.20 1.50 1.60 3.00 4.50 3.50 6.00 H2'12 2013 2014 2015 2016 2017 2018 2019 2020* Earnings per share Dividend per share 2.95 4.70 7.40 10.40 0.00 0.50 1.70 Earnings per share Dividend per share

Accumulated dividend and earnings per share

** Includes EPS of NOK 11.02 and DPS of NOK 22 from UP transaction.

Annual dividend and earnings per share

Proposed dividend for H2 2020 NOK 3.00 per share.

* Excluding earnings and dividend from UP transaction.

Revised dividend policy:

Selvaag Bolig's ambition is to pay high and stable dividends to its owners.

The company aims to pay dividends of minimum 60 per cent of net annual profit, paid in two instalments over the year. However, the size of the dividend will be weighed against the company's liquidity forecasts and capital adequacy.

Old dividend policy:

Selvaag Bolig's ambition is to pay high and stable dividends to its owners.

The company aims to pay dividends of minimum 40 per cent of net annual profit, paid in two instalments over the year. However, the size of the dividend will be weighed against the company's liquidity forecasts and capital adequacy.

The company will maintain an equity ratio of minimum 30 per cent.

Dividend policy

Share performance since IPO in June 2012

Source: Oslo Børs.

Share information

• · Number of shareholders: 4 361 (3 547)*
• 20 largest controlling 80.1% (79.9)
• Selvaag AS largest shareholder 53.5%
• · Trading
• 4.6 million shares during the quarter (4.2)
• Share turnover totaled NOK 279 million (214)

^* All numbers in brackets from previous quarter.

Largest shareholders at 31.3, 2021

* Further information regarding shareholders is presented at: http://sboasa.no/en.

Shareholder	# of shares	% share
SELVAAG AS	50 180 087	53.5%
Skandinaviska Enskilda Banken AB *	6 231 726	6.6%
PARETO INVEST AS	2 731 676	2.9%
VERDIPAPIRFONDET ALFRED BERG GAMBA	2 717 700	2.9%
Morgan Stanley & Co. Int. Plc. *	2 281 825	2.4%
JPMorgan Chase Bank, N.A., London *	1 950 674	2.1%
State Street Bank and Trust Comp *	1 553 061	1.7%
MUSTAD INDUSTRIER AS	770 000	0.8%
J.P. Morgan Bank Luxembourg S.A. *	749 829	0.8%
Skandinaviska Enskilda Banken AB *	700 000	0.7%
Landkreditt Utbytte	650 000	0.7%
SANDEN AS	635 000	0.7%
BANAN II AS	600 000	0.6%
VERDIPAPIRFONDET EIKA SPAR	578 441	0.6%
SPARHANS AS	550 000	0.6%
Brown Brothers Harriman & Co. *	521 780	0.6%
Morgan Stanley & Co. International	438 610	0.5%
VERDIPAPIRFONDET EIKA NORGE	437 374	0.5%
Brown Brothers Harriman & Co. *	427 048	0.5%
HOLTA INVEST AS	410 000	0.4%
Total 20 largest shareholders	75 114 831	80.1%
Other shareholders	18 650 857	19.9%
Total number of shares	93 765 688	100.0%

• · Nearly 60 000 homes over the last 70 years
• · Housing for all
• · Focus on fast growing urban regions
• · Large projects with more than 150 units

Addressing the long term housing need

Trondheim 460 units

Stockholm 310 units

Greater-Oslo

8 994 units

Positioned to realize large projects in Norway's four largest growing urban areas

• Acquire the right mix of zoned and un-zoned land in suitable locations
• Land acquisitions in defined core areas in co-operation with Urban Property
• High degree of site utilization and strategic land development
• Substantial land bank to accommodate targets/growth in core areas
• Good infrastructure and public transport
• Joint ventures (JVs)

Land bank exposure

Trondheim 460 units

Geographical spread

Stockholm 310 units

Greater-Oslo 8 994 units

Stavanger 752 units

Bergen 854 units

Land-bank strategy

Note: The numbers represent the size of the land portfolio as at 31 March 2021. All numbers are adjusted for Selvaag Bolig's share in joint ventures. 1) Greater Oslo area: Oslo, Akershus, Buskerud, Vestfold and Østfold, 2) The residential property development portfolio consists of land plots that are to be paid for when planning permission is received. The portfolio has a development potential of ~5 900 residential units.

48

Cooperation with Urban Property from 1.1.2021

• How it works:
• Urban Property has a right of first refusal (ROFR) to purchase all new land Selvaag Bolig wants to develop
• Urban Property acquires land on Selvaag Bolig recommendations
• Selvaag Bolig has an option to repurchase the land in stages

• Fee structure:

  • 2.5% transaction fee
  • Annual option premium of NIBOR +375bp

• Eliminates need for equity when purchasing land, as SBO pay 50% of purchasing price at construction start and 50%

• Benefits for Selvaag Bolig:

• at project completion
• Increases return on equity
• Allows for a higher dividend payout ratio

• land plots

• (break fee)

• More efficient and predictable funding of existing and new

• Increases competitiveness when making land purchases - Down-side risk for SBO limited to 48 months option premium

Selvaag Bolig sold most of its land bank to Urban Property in January 2020, entering a long-term and strategic partnership. Urban Property is a financially sound, well capitalized and predictable partner.

Reduced capital binding in practice, in effect no equity needed in Selvaag Bolig for land

Residential development value chain: cooperation between Selvaag Bolig and Urban Property

Land bank acquisitions

• Land bank replacement secure long-term growth
• Persistent presence in established areas in Norway
• Increasing exposure in new growth area

Lilleakerveien 47 Oslo	Årstadfältet Stockholm
· Western part of Oslo	· Söderort transformation district
· Up to 150 units	· 120 units

Slakthus area| Stockholm

· Söderort transformation district

· 150 units

Land bank in Oslo and Greater Oslo at 31.3.21

Lørenskog 1 976 units Lørenskog Stasjonsby 625 units Skårer bolig 746 units LSV 300 units

Pallplassen 305 units

1 976 units

Oslo South 315 units Gjertsrud Stensrud 315 units

Follo/Østfold 1 471 units Langhus 191 units Solberg 122 units Ski 88 units Grenseveien 340 units Fredrikstad 730 units

Lillestrøm

Bjerke 1 025 units

Land bank in Stavanger area at 31.3.21

*The numbers are adjusted for Selvaag Bolig's share in joint ventures.

Land bank in Bergen, Trondheim and Stockholm at 31.3.21

*The numbers are adjusted for Selvaag Bolig's share in joint ventures.

Substantial portfolio for development

Total land bank portfolio at 31.3.2021

Units

Valuation of remaining land bank*

1 491

^* Part of SBO land bank not included in the UP transaction.

(Nov 2020)

NOK million

Value of units sold - gross and net

Sales value of units sold

NOK million

Number of units sold - gross and net

Number of units sold

Units

Income statement IFRS

(figures in NOK million)	Q1 2021	Q1 2020	2020
Total operating revenues	567.9	209.1	2 698.0
Project expenses	(401.2)	(133.9)	(1 967.6)
Other operating expenses	(54.7)	(51.6)	(256.8)
Associated companies and joint ventures	6.0	86.7	135.0
EBITDA	117.865	110.250	608.481
Depreciation and amortisation	(2.6)	(2.5)	(9.8)
Other gains (loss)	-	1 028.7	1 045.1
EBIT	115.3	1 136.4	1 643.8
Net financial expenses	(4.0)	0.1	9.7
Profit/(loss) before taxes	111.3	1 136.5	1 653.5
Income taxes	(34.7)	(7.5)	(129.9)
Net income	76.6	1 129.0	1 523.6

Balance sheet

(figures in NOK million)	Q1 2021	Q1 2020	2020
Intangible assets	383.4	383.4	383.4
Property, plant and equipment	7.1	5.5	7.3
Investments in associated companies and joint ventures	407.9	512.2	406.9
Other non-current assets	255.9	249.7	228.1
Total non-current assets	1 054.3	1 150.8	1 025.7
Inventories (property)	4 172.4	4 053.9	3 940.8
- Land	1 008.0	1 062.5	909.3
- Land held for sale
- Work in progress	2 982.5	2 855.1	2 911.0
- Finished goods	182.0	136.4	120.5
Other current receivables	137.9	126.5	119.0
Cash and cash equivalents	697.9	771.3	885.3
Assets held for sale	-	-	-
Total current assets	5 008.3	4 951.8	4 945.1
TOTAL ASSETS	6 062.6	6 102.5	5 970.8
Equity attributed to shareholders in Selvaag Bolig ASA*	2 502.1	2 459.4	2 430.0
Non-controlling interests Total equity	7.8 2 509.9	7.9 2 467.2	7.8 2 437.8
Non-current interest-bearing liabilities	1 074.8	1 171.5	1 100.3
Other non-current non interest-bearing liabilities	279.7	148.1	136.5
Total non-current liabilities	1 354.5	1 319.6	1 236.8
Current interest-bearing liabilities	1 368.9	1 345.8	1 368.1
Other current non interest-bearing liabilities	829.2	969.9	928.1
Total current liabilities	2 198.2	2 315.7	2 296.2
TOTAL EQUITY AND LIABILITIES	6 062.6	6 102.5	5 970.8

* Corresponding to a book value of NOK per share 26.68

Cash flow statement

(figures in NOK million)	Q1 2021	Q1 2020	2020
Net cash flow from operating activities	(87.8)	1 182.6	1 615.7
Net cash flow from investment activities	(5.6)	220.2	413.8
Net cash flow from financing activities	(94.0)		(1 810.1) (2 322.9)
Net change in cash and cash equivalents	(187.4)	(407.3)	(293.4)
Cash and cash equivalents at start of period	885.3	1 178.7	1 178.7
Cash and cash equivalents at end of period	697.9	771.3	885.3

Operational highlights – key operating figures

	Q1 20	Q2 20	Q3 20	Q4 20	Q1 21
Units sold	164	142	178	199	248
Construction starts	15	31	196	254	134
Units completed	89	104	212	286	95
Units delivered	114	122	212	272	124
Units under construction	1 431	1 357	1 342	1 310	1 349
Proportion of sold units under construction	76 %	78 %	77 %	74 %	82 %
Completed unsold units	37	25	19	19	17
Sales value of units under construction (NOK million)	6 742	6 327	6 660	6 413	6 627
Number of employees	87	87	85	85	85

EBITDA Q1 2021

Note: EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies.

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	843.3	14.6	857.9
Project expenses	(653.1)	(0.1)	(653.2)
Other operating expenses	(13.9)	(43.4)	(57.3)
EBITDA (percentage of completion)	176.2	(28.9)	147.4
Note: Construction costs are exclusive of financial expenses in the segment reporting.
IFRS EBITDA for the quarter, per segment
Operating revenues	553.3	14.6	567.9
Project expenses	(401.1)	(0.1)	(401.2)
Other operating expenses	(13.9)	(40.8)	(54.7)
Share of income (losses) from associated companies
and joint ventures Other gain (loss), net	6.0 -	-	6.0
EBITDA	144.2	(26.3)	117.9
Units in production	1 349	N/A	N/A
Units delivered	124	N/A	N/A

Norwegian housing market

· Low risk for housebuilders

• · Advance sales: banks require that 50-70% of homes are sold before construction starts
• · Binding offers: offer to purchase is a binding sales contract, and requires a minimum 10% cash deposit
• · High level of home ownership
• · 85% (one of the world's highest)
• · Economic benefits for home owners
• · 23% of mortgage loan interest payments are tax deductible
• · Transfer stamp duty for new houses is lower than for second-hand homes
• · Strong population growth
• · Norway's urban areas are among the fastest growing in Europe
• · Good market for new homes

Source: Selvaag Bolig and Eurostat.

Total household debt and homeownership

Source: OECD, Statista.

Price development Norway and selected regions (2005-21)

Price development (rebased 1.1.2005)

Source: Eiendomsverdi.

* Stavanger area includes: Randaberg, Sandnes, Sola, Stavanger.

Increasing share of population growth in Oslo and Akershus

Share of total population in Oslo and Akershus Share of total population growth in Oslo and Akershus

Source: Statistics Norway.

Homeownership rate among immigrants in Norway (per year living in Norway)

Immigration increases demand over time

of years in Norway

Source: Statistics Norway.

Norway – relatively limited volatility

Population growth 2020 - 2030e and 2040e Interest rates* 2013 - 2022e

Source: Bloomberg, UN.

GDP growth 2013 - 2023e Unemployment 2013 - 2023e -10% -5% 0% 5% 10% 2013 2014 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e Norway Sweden Denmark Germany UK

* Central bank rates

Norway – moving back to normal in through 2021

Wages & disposable income 2019 – 2024e Prices & interest rates 2019 – 2024e

Source: Monetary Policy Report 1|21, Central Bank of Norway.

Example project calculations before and after

Example apply a land ownership period in Urban Property of 3-4 years, and a finance cost of 4% on all capital employed in the project.

	PROJECT CALCULATIONS 1 BEFORE URBAN PROPERTY		PROJECT CALCULATIONS 2 AFTER URBAN PROPERTY
Figures for illustration purposes only	MNOK	%	MNOK	%
Sales revenue	348.5	100.0%	348.5	100.0%
Construction cost	195.8	56.2%	195.8	56.2%
Land cost	69.7	20.0%	85.2	24.4%
Other costs	24.5	7.0%	24.5	7.0%
Project cost	290.0	83.2%	305.5	87.7%
Net finance (excluding Urban Property)	16.8	4.8%	5.3	1.5%
TOTAL REVENUE	348.5	100.0%	348.5	100.0%
TOTAL COST	306.8	88.0%	310.9	89.2%
PROFIT	41.7	12.0 %	37.7	10.8%
Internal rate of return (IRR)		12.2%		28.0%

1

2

In total marginal lower project margins, but significantly increased IRR and RoE

^* Assuming flat market development.