Selvaag Bolig ASA

Investor Presentation • Feb 17, 2021

Oslo, 17 February 2021 Sverre Molvik, CEO

Q4 2020

Agenda

Highlights

Operational and financial update

Market

Outlook and summary

Highlights Q4 and FY 2020

• · Record high Q4 and H2 sales value
• · Solid Q4 earnings with good margins
• · Record high FY results driven by UP transaction and good underlying operational performance
• · Proposed H2 20 dividend of NOK 3.00 per share, NOK 6.00 per share for the full year
• · UP transaction improving capital efficiency, paid out extra dividend of NOK 22 per share
• · External valuation of remaining land bank of NOK 1.5bn vs. book value of NOK 900m

Completed, ongoing and upcoming projects

Key financials Q4 and FY 2020

19.7

EBITDA** margin (NGAAP)

Per cent

25.2

Adjusted EBITDA* margin

Per cent

* EBITDA is profit before interest, taxes, depreciation and amortization.

** EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies

Agenda

Highlights

Operational and financial update Market

Outlook and summary

Sales value

Sales value and units sold

Number of units sold per quarter

NOK million Units

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

• · Q4 2020: 74% of units under construction sold by Q4 2020

• · Q4 2020: 92% of construction volume in Greater Oslo Area*

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

• · 86% of 2021 completions sold by Q4 2020

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

Income statement highlights Q4 2020 (IFRS)

^* 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.

• 8 units from share of JVs (22)
• · Revenues NOK 1 347m (1 414)
• Other revenues NOK 12m (26)
• · Project costs NOK 935m (937)
• Of which NOK 24m is interest (23)
• · Other costs NOK 83m (92)
• · Adjusted EBITDA* NOK 358m (398)
• · EBITDA* NOK 334m (375)
• · EPS in the quarter NOK 2.62 (3.00)

Income statement highlights FY 2020 (IFRS)

• · 720 units delivered (732)
• · Revenues NOK 2 698 (3 369)
• Other revenues NOK 54m (86)
• · Adjusted EBITDA* NOK 679m (959)
• · EBITDA* NOK 608m (877)
• · EPS full year NOK 5.31 (7.04)
• Additional NOK 11.02 per share from UP transaction, totaling NOK 16.33 per share

Revenues and adjusted EBITDA margin (IFRS)

* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses included in project costs.

Income statement highlights Q4 2020 (NGAAP)

Revenues and EBITDA margin (NGAAP)* 12 months rolling revenues (NGAAP)*

NOK million NOK million

* 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

Cash flow development Q4 2020

NOK million

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

• · Cash flow from operations positive at NOK 923m mainly due to release of short-term receivables settled in October and inventory release from units delivered
• · Cash flow from investing activities positive at NOK 5m
• · Cash flow from financing activities negative at NOK 404m mainly driven by repayments of construction loans

-415

Net change in borrowings

Cash and cash equivalents at 31 December 2020

Balance sheet highlights Q4 2020

Balance sheet composition

Assets Equity and Liabilities

0 1 000 2 000 3 000 4 000 5 000 6 000 Cash Non-current assets Current assets · Book value of equity NOK 25.9 per share - Equity ratio 40.8% · Changes from Q3 2020: - Inventories decreased by NOK 334m - Trade and Other receivables decreased by NOK 373m - Cash increased by NOK 524m · Prepayments from customers represents NOK 278m of other current non-interestbearing liabilities NOK million

Inventories (property) Q4 2020

Q4 20 vs Q3 20 Inventory value development

• · Land value down NOK 70m
• Mainly due to construction starts
• · Work in progress down NOK 261m
• Due to high number of deliveries
• · Finished goods down NOK 4m

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

NOK million

Valuation of remaining land bank*

582

1 491

Book value 31.12.2020 Gap Valuation: 60 Grader Næringsmegling (Nov 2020)

NOK million

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

Debt structure

Drawn at 31.12.20 (NOKm) Interest rate margin* 1 526 1.75% - 2.60% 2 Land loans Urban Property** 694 3.75%*** 248 2.00% - 2.50% 0 3.40% 0 2.00%

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

Total Q3 2020 net interest-bearing debt NOK 2 510 million

Interest-bearing debt at 31.12.20

NOK million

* Margin to 3m NIBOR

** Repurchase agreements portfolio B

*** + 2.00% fee at property repurchase

* Repurchase agreements portfolio B

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

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

Agenda

Highlights

Operational and financial update

Outlook and summary

Estimated completions in Oslo well below forecasted need

3 400 units per year (medium growth)

23 Note: Completions exclusive of student- and senior housing * Estimates based on actual start and time of construction

Sources: Historic data: Statistics Norway (SSB), Forecasted housing completions: Hawii analyse, 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

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

* Include Stavanger, Sola, Sandnes, Randaberg

Regional price* development 1.1-31.12, 2007-20

Source: Eiendom Norge

* Nominal price change

** Includes Stavanger, Sola, Sandnes, Randaberg

Upcoming projects 2022 to 2024

Fornebu | Greater Oslo

• · ~1 800 units (50/50 JV)
• · Expected sales start: 2024

Bjerke | Oslo

• · ~1 200 units
• · Expected sales start: 2024

Lørenskog stasjonsby | Greater Oslo

• · 1 500 units total
• · ~ 900 units remaining for sale

Skårerbyen | Greater Oslo

• · ~1 200 units total
• · ~ 1 000 units remaining for sale

Upcoming large regional projects

Fredrikstad | Greater Oslo

• · ~ 900 units
• · Expected sales start: 2022/23

RingvePluss | Trondheim

• · ~600 units total
• · Expected sales start: 2021/22

Elveparken | Stavangerarea

• · ~500 units total
• · Expected sales start: 2023
• At 10 February, SBO had approximately 430 units for sale in Norway
• Planning for sale start of additional 400 units H1 2021

Sandsli | Bergen

• · Sales start H2 2020
• · ~450 units total

Agenda

Highlights Operational and financial update Market Outlook and summary

Outlook

• · Continued positive market sentiment in Greater Oslo entering 2021
• · Attractive projects for sale in all the markets where we operate

• · Targeting new areas for future growth

• · Record high Q4 and H2 sales value

• · Solid Q4 earnings with good margins
• · Record high FY results driven by UP transaction and good underlying operational performance
• · Proposed H2 20 dividend of NOK 3.00 per share, NOK 6.00 per share for the full year
• · UP transaction improving capital efficiency, paid out extra dividend of NOK 22 per share
• · External valuation of remaining land bank of NOK 1.5bn vs. book value of NOK 900m

Summary

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Share performance since IPO in June 2012

Source: Oslo Børs

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 information

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18

Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

^* All numbers in brackets from previous quarter

# of shares	% share
50 180 087	53,5%
6 049 720	6,5%
2 652 746	2,8%
2 632 236	2,8%
1 989 929	2,1%
1 853 972	2,0%
1 540 053	1,6%
870 000	0,9%
776 249	0,8%
709 324	0,8%
650 000	$0,7\%$
650 000	0,7%
601 588	0,6%
600 000	$0,6\%$
547 221	0,6%
528 300	0,6%
522 650	0,6%
510 603	0,5%
510 005	0,5%
500 000	0,5%
74 874 683	79,9%
18 891 005	20,1%
93 765 688	100,0%

Largest shareholders at 31.12, 2020 Shareholder # of shares % share

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

SELVAAG AS	50 180 087	53,5%
Skandinaviska Enskilda Banken AB *	6 049 720	6,5%
PARETO INVEST AS	2 652 746	2,8%
Morgan Stanley & Co. Int. Plc. *	2 632 236	2,8%
VERDIPAPIRFONDET ALFRED BERG GAMBA	1 989 929	2,1%
JPMorgan Chase Bank, N.A., London *	1 853 972	2,0%
State Street Bank and Trust Comp *	1 540 053	1,6%
MUSTAD INDUSTRIER AS	870 000	0,9%
J.P. Morgan Bank Luxembourg S.A. *	776 249	0,8%
Brown Brothers Harriman & Co. *	709 324	0,8%
Landkreditt Utbytte	650 000	0,7%
VERDIPAPIRFONDET HOLBERG NORGE	650 000	0,7%
SANDEN AS	601 588	0,6%
BANAN II AS	600 000	0,6%
SPARHANS AS	547 221	0,6%
VERDIPAPIRFONDET EIKA SPAR	528 300	0,6%
Brown Brothers Harriman & Co. *	522 650	0,6%
Morgan Stanley & Co. International	510 603	0,5%
J.P. Morgan Bank Luxembourg S.A. *	510 005	0,5%
SEB PRIME SOLUTIONS SISSENER CANOP	500 000	0,5%
Total 20 largest shareholders	74 874 683	79,9%
Other shareholders	18 891 005	20,1%
Total number of shares	93 765 688	100,0%

Price development Norway and selected regions (2005-20)

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

• · 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

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 9 122 units

Stavanger 758 units

Bergen 754 units

Land-bank strategy

Note: The numbers represent the size of the land portfolio as at 30 September 2020. 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 ~6 250 residential units.

45

Land bank in Oslo and Greater Oslo at 31.12.20

Lørenskog 2 080 units Lørenskog Stasjonsby 625 units Skårer bolig 850 units

LSV 300 units

Pallplassen 305 units

2 080 units

Oslo South 315 units Gjertsrud Stensrud 315 units

Follo/Østfold 1 495 units Langhus 215 units Solberg 122 units Ski 88 units Grenseveien 340 units Fredrikstad 730 units

Lillestrøm

Bjerke 1 025 units

Land bank in Stavanger area at 31.12.20

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

Land bank in Bergen, Trondheim and Stockholm at 31.12.20

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

Substantial portfolio for development

Total land bank portfolio at 31.12 2020

Units

Q4 2020 proforma figures including proportionate share of JV

Operating revenues Adjusted EBITDA-margin

*Q1 2020 adjusted EBITDA margin of 26.0% excluding other gains of NOK 1 029m

* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses included in project costs. The difference compared to reported EBITDA is due to interest, taxes, depreciation and amortization in JVs.

• · 272 units delivered (214)
• 8 units from share of JVs (22)
• · Revenues NOK 1 438 (1 528)
• Other revenues NOK 17m (31)
• · Project costs NOK 1 016m (1 050)
• Of which NOK 25m is interest (29)
• · Other costs NOK 91m (105)
• · Adjusted EBITDA* NOK 359m (407)
• · EBITDA* NOK 335m (378)
• · EPS in the quarter NOK 2.62 (3.00)

FY 2020 proforma figures including proportionate share of JV

* EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses included in project costs.

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

Project margin development

NOK million

^** Project margins are exclusive of overhead costs

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

Income statement IFRS

Income statement IFRS
(figures in NOK million)	Q4 2020	Q4 2019	2020	2019
Total operating revenues	1 347.2	1 414.4	2 698.0	3 368.8
Project expenses	(934.9)	(936.7)	(1 967.6)	(2 279.5)
Other operating expenses	(80.9)	(88.8)	(256.8)	(274.1)
Associated companies and joint ventures	2.8	(13.7)	135.0	62.2
EBITDA	334.3	375.2	608.5	877.5
Depreciation and amortisation	(2.5)	(2.8)	(9.8)	(12.7)
Other gains (loss)	16.4	-	1 045.1	-
EBIT	348.2	372.4	1 643.8	864.7
Net financial expenses	(0.7)	2.3	9.7	(10.7)
Profit/(loss) before taxes	347.5	374.6	1 653.5	854.0
Income taxes	(103.5)	(96.1)	(129.9)	(199.5)
Net income	243.9	278.6	1 523.6	654.5

Balance sheet

(figures in NOK million)	Q4 2020	Q3 2020	2019
Intangible assets	383.4	383.4	383.4
Property, plant and equipment	7.3	5.3	5.6
Investments in associated companies and joint ventures	406.9	398.6	430.3
Other non-current assets	228.1	236.2	280.4
Total non-current assets	1 025.7	1 023.6	1 099.6
Inventories (property)	3 940.8	4 274.6	3 636.7
- Land	909.3	979.0	1 020.8
- Land held for sale
- Work in progress	2 911.0	3 171.6	2 433.2
- Finished goods	120.5	123.9	182.6
Other current receivables	119.0	491.8	133.3
Cash and cash equivalents	885.3	361.3	1 178.7
Assets held for sale	-	-	864.2
Total current assets	4 945.1	5 127.7	5 812.8
TOTAL ASSETS	5 970.8	6 151.2	6 912.4
Equity attributed to shareholders in Selvaag Bolig ASA*	2 430.0	2 170.8	3 374.2
Non-controlling interests	7.8	7.9	7.9
Total equity	2 437.8	2 178.6	3 382.1
Non-current interest-bearing liabilities	1 100.3	1 255.6	1 092.3
Other non-current non interest-bearing liabilities	132.3	151.9	124.2
Total non-current liabilities	1 232.6	1 407.5	1 216.5
Current interest-bearing liabilities	1 368.1	1 616.1	1 161.0
Other current non interest-bearing liabilities	932.2	949.1	1 152.8
Total current liabilities	2 300.4	2 565.1	2 313.9
TOTAL EQUITY AND LIABILITIES	5 970.8	6 151.2	6 912.4

* Corresponding to a book value of NOK per share 25.92

Cash flow statement

Cash flow statement
(figures in NOK million)	Q4 2020	Q4 2019	2020	2019
Net cash flow from operating activities	922.9	943.7	1 615.7	985.9
Net cash flow from investment activities	4.7	(9.7)	413.8	64.1
Net cash flow from financing activities	(403.6)	(243.6)	(2 322.9)	(528.4)
Net change in cash and cash equivalents	524.0	690.4	(293.4)	521.7
Cash and cash equivalents at start of period	361.3	488.3	1 178.7	657.0
Cash and cash equivalents at end of period	885.3	1 178.7	885.3	1 178.7

Operational highlights – key operating figures

	Q4 19	Q1 20	Q2 20	Q3 20	Q4 20
Units sold	140	164	142	178	199
Construction starts	248	15	31	196	254
Units completed	254	89	104	212	286
Units delivered	214	114	122	212	272
Units under construction	1 504	1 431	1 357	1 342	1 310
Proportion of sold units under construction	70 %	76 %	78 %	77 %	74 %
Completed unsold units	56	37	25	19	19
Sales value of units under construction (NOK million)	7 155	6 742	6 327	6 660	6 413
Number of employees	87	87	87	85	85

EBITDA Q4 2020

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

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	937.9	11.5	949.4
Project expenses	(697.2)	(0.2)	(697.4)
Other operating expenses	(15.5)	(67.8)	(83.3)
EBITDA (percentage of completion)	225.2	(56.6)	168.6
Note: Construction costs are exclusive of financial expenses in the segment reporting.
IFRS EBITDA for the quarter, per segment
Operating revenues	1 335.7	11.5	1 347.2
Project expenses	(934.7)	(0.2)	(934.9)
Other operating expenses	(13.0)	(67.8)	(80.9)
Share of income (losses) from associated companies
and joint ventures	2.8	-	2.8
EBITDA	390.8	(56.6)	334.3
Units in production	1 310	N/A	N/A
Units delivered	272	N/A	N/A

EBITDA 2020

Note: EBITDA is operating profit before interest, taxes, depreciation, amortization and other gains (losses).

	Property
(figures in NOK million)	development	Other	Total
Operating revenues	3 165.2	50.7	3 215.9
Project expenses	(2 316.4)	(0.7)	(2 317.1)
Other operating expenses	(48.5)	(218.3)	(266.8)
EBITDA (percentage of completion)	800.4	(168.4)	632.0
Note: Construction costs are exclusive of financial expenses in the segment reporting.
IFRS EBITDA full year per segment
Operating revenues	2 647.3	50.7	2 698.0
Project expenses	(1 966.7)	(0.7)	(1 967.4)
Other operating expenses	(38.7)	(218.3)	(257.0)
Share of income (losses) from associated companies
and joint ventures	135.0	-	135.0
EBITDA	776.9	(168.4)	608.5
Units in production	I/A	N/A	N/A
Units delivered	I/A	N/A	N/A

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

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

Household debt in % of net disposable income (2019) Homeownership rate (2018)

Source: OECD, Prognosesenteret

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

Immigration increases demand over time

of years in Norway

Norway – relatively limited volatility

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

Source: Bloomberg, UN

* Central bank rates

Norway – moving back to normal in through 2021

Wages & disposable income 2019 – 2023e Prices & interest rates 2019 – 2023e

Source: 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

	1	PROJECT CALCULATIONS 2		PROJECT CALCULATIONS
		BEFORE URBAN PROPERTY		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

Margin development through project stages*

^* Assuming flat market development

Balance sheet implications and effects of dividend

Statements of financial position	Reported	Transaction		Pro forma
(figures in MNOK)	Q4 2019	Sale	Dividend	Q4 2019
ASSETS
Investments in associated companies and joint ventures	430	0	0	430
Loans to associated companies and joint ventures	130	-59	0	71
Other non-current assets	741	-143	0	598
Total non-current assets	1 301	-202	0	1 100
Inventory	4 299	-663	0	3 637
Other current receivables	133	0	0	133
Cash and cash equivalents	1 179	1 751	-2 055	875
Total current assets	5 611	1 088	-2 055	4 645
TOTAL ASSETS	6 912	887	-2 055	5 744
EQUITY AND LIABILITIES
Total equity	3 383	1 043	-2 055	2 371
LIABILITIES
Other non-current non interest-bearing liabiliteies	157	0	0	157
Non-current interest bearing liabilities	1 128	-157	0	971
Total non-current liabilities	1 284	-157	0	1 128
Current interest bearing liabilities	1 169	0	0	1 169
Other current non interest-bearing liabilities	1 076	0	0	1 076
Total current liabilities	2 245	0	0	2 245
Total liabilities	3 530	-157	0	3 373
TOTAL EQUITY AND LIABILITIES	6 912	887	-2 055	5 744
Equity%	49 %			41 %
Dividend per share (NOK)			22,0

· Transaction value NOK 3 360m

· Repayment of debt NOK 1 160m

· Free liquidity from transaction NOK 1 800m

· EO dividend NOK 22 per share

· Pro forma equity down ~NOK 1 000 to NOK 2 364m - Equity ratio 41%, down from 49%