Selvaag Bolig ASA: Q4 2022: Good results, dividend and homes under construction for NOK 6.4 billion

14 Feb 2023 07:00 CET

Selvaag Bolig had operating revenues of NOK 2 896 million and EBITDA adjusted
for financial expenses of NOK 517 million in 2022. Given these results and the
company's solidity, the board proposes a dividend of NOK 2 per share for the
second half of 2022. That brings the total payout for the year to NOK 4 per
share.

"Results for 2022 were good," says CEO Sverre Molvik. "The decline from 2021
reflects the fact that we delivered fewer homes to our customers in in 2022
than in 2021, but the profitability of the projects is good. That is also
reflected in the proposed dividend of NOK 2 per share for the second half."

During the fourth quarter Selvaag Bolig started construction of 146 homes and
completed 160. At 31 December, the company had 1 253 homes with a total sales
value of NOK 6.4 billion under construction, up by NOK 183 million from 30
September. Sixty-seven per cent of these units were sold at the end of 2022.

"Even though sales in the second half were negatively affected by higher
mortgage interest rates and increased living costs, we succeeded in selling
sufficiently to start construction of nearly as many homes as we completed,"
says Molvik. "This means the level of activity in the company is high and the
order backlog is solid.

"Over the past year, we have also acquired new land which can provide
approximately 800 homes. That's rather more than our construction starts. We
now have a land bank for approximately 11 000 homes and are thereby well
positioned for growth when the market recovers."

Selvaag Bolig started construction of 517 homes in 2022. The company now has
around 350 for sale and can start sales of an additional 650 homes during the
first half of 2023 providing market conditions are satisfactory.

The live webcast of the presentation can be viewed from 0830 here.
(https://channel.royalcast.com/landingpage/hegnarmedia/20230214_2/) An English
transcript of the presentation will be made available on the company's
website.

Highlights of the fourth quarter 2022 (fourth quarter 2021)

* Gross sales* amounted to 49 homes (306) with a sales value of NOK 255
million (NOK 1,401 million)
* Net sales* were 44 homes (276) with a sales value of NOK 220 million (NOK
1,265 million)
* Net construction starts for146 homes (456), net completions of 160 (334) and
net deliveries of 147 to buyers (324)
* Net construction under way on 1,253 homes (1,323) with a combined sales
value of NOK 6,408 million (NOK 6,736 million)
* 67 per cent (67 per cent) of homes under construction sold at 31 December
* 31 (25) completed homes unsold at 31 December
* IFRS**: Operating revenues of NOK 669 million (NOK 1,554 million), EBITDA
adjusted for financial expenses NOK 87 million (NOK 317 million),
corresponding to a margin of 13 per cent (20.4 per cent)
* Earnings per share: NOK 0.48 (NOK 2.34)
* NGAAP***: Operating revenues of NOK 526 million (NOK 795 million), EBITDA of
NOK 71 million (NOK 113 million), corresponding to a margin of 13.5 per cent
(14.2 per cent)

Highlights of 2022 (2021)

* IFRS**: Operating revenues of NOK 2,896 million (NOK 3,403 million), EBITDA
adjusted for financial expenses NOK 517 million (NOK 756 million),
corresponding to a margin of 17.9 per cent (22.2 per cent)
* Earnings per share: NOK 3.63 (NOK 5.40)
* The board proposes a dividend of NOK 2.00 per share (NOK 3.00) for the
second half. Total ordinary dividend for the year will be NOK 4.00 per share
(NOK 5.00)
* NGAAP***: Operating revenues of NOK 2,856 million (NOK 3,308 million),
EBITDA of NOK 377 million (NOK 524 million), corresponding to a margin of
13.2 per cent (15.8 per cent)
* Gross sales* amounted to 561 homes (907) with a sales value of NOK 2,963
million (NOK 4,506 million)
* Net sales* were 448 homes (821) with a sales value of NOK 2,328 million (NOK
4,026 million)
* Net construction starts for 517 homes (880), net completions of 586 (867)
and net deliveries of 585 to buyers (894)

* 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 70-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
2023-02-14 07:00 CET.

More information:
Access the news on Oslo Bors NewsWeb site

582265_Presentation 4th quarter 2022.pdf
582265_Report for 4th quarter 2022.pdf