Selvaag Bolig Asa · OSL:SBO
Selvaag Bolig Asa — Q4 2022 Earnings Presentation
83 slides from Selvaag Bolig Asa's earnings presentation, Feb 14, 2023
Slide 1: Q4 2022
Q4 2022 Oslo, 14 February 2023 Sverre Molvik, CEO Christopher Brunvoll, CFO
Slide 2: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary 2
Slide 3: Highlights Q4 and FY 2022
Highlights Q4 and FY 2022 · Solid results considering few units delivered · Sales impacted by challenging market conditions · 146 construction starts vs. 160 completions, and increased value of units under construction · Construction costs falling · External valuation of remaining land bank of NOK 1
Slide 4: Key financials Q4 and FY 2022
Key financials Q4 and FY 2022 Q4 2022 Full year 2022 669 13.0 2 896 17.9 Operating revenues Operating revenues Adjusted EBITDA* margin Adjusted EBITDA* margin NOK million NOK million Per cent Per cent 526 13.5 2 856 13.2 Operating revenues (NGAAP) EBITDA** margin (NGAAP) Operating revenues (NGAAP) E
Slide 5: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary
Slide 6: Operational news
Operational news • Increased due to geopolitical unrest and shortages after COVID-19 pandemic Construction cost • New projects in certain areas postponed due to high construction costs • Construction costs now falling • Risk-minimizing sales model Operating - Minimum presale of 60% and fixed constru
Slide 7: Sales value and units sold
Sales value and units sold Sales value Number of units sold per quarter NOK million Units 1 265 1 033 140 276 Q4 148 634 199 Q3 44 439 Q2 5.1 5.3 5.3 5.0 4.6 220 Q1 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 2018 2019 2020 2021 2022 Total sales value Average sales value Annual sales 696 752 683 821 448 Note: Sal
Slide 8: Rolling sales value and units sold
Rolling sales value and units sold Sales value 12-month rolling Units sold 12-month rolling NOK million Units 4 012 907 904 3 803 863 3 566 818 3 373 561 2 325 4.9 4.9 4.9 5.0 5.2 821 775 722 680 448 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Total sales value Average sales value *T
Slide 9: Construction starts and completions
Construction starts and completions Construction starts and completions per quarter Units 456 334 210 190 160 142 146 113 74 68 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Number of construction starts Number of units completed Note: Number of units are adjusted for Selvaag Bolig’s share in joint ventures. 9
Slide 10: Units under construction and completions
Units under construction and completions Sales value units under construction Expected completions per quarter NOK million Units 7 034 6 807 6 736 331 6 225 6 408 1 323 1 361 1 342 1 268 178 1 253 161 166 74 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Sales value Number of units unde
Slide 11: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary
Slide 12: Income statement highlights Q4 2022 (IFRS)
Income statement highlights Q4 2022 (IFRS) Operating revenues (IFRS) · 147 units delivered (324) NOK million - 1 unit from share of JVs (33) 1 554 · Revenues NOK 669m (1554) - Other revenues NOK 19m (14) · Project costs NOK 514m (1 113) 966 905 - Of which NOK 20m is interest (45) 669 · Other costs N
Slide 13: Q4 2022 proforma figures including proportionate share of JV
Q4 2022 proforma figures including proportionate share of JV Operating revenues (IFRS) NOK million · 147 units delivered (324) 1 681 · Revenues NOK 674 (1 680) 1 420 - Other revenues NOK 22m (17) · Project costs NOK 525m (1 317) 914 - Of which NOK 20m is interest (47) 674 · Other costs NOK 85m (88)
Slide 14: FY 2022 proforma figures including proportionate share of JV
FY 2022 proforma figures including proportionate share of JV Operating revenues (IFRS) NOK million · 585 units delivered (894) 4 299 · Revenues NOK 3 370m (4 299) 3 553 - Other revenues NOK 75m (74) 3 370 · Project costs NOK 2 643m (3 342) - Of which NOK 95m is interest (128) · Adjusted EBITDA NOK 5
Slide 15: Income statement highlights Q4 2022 (NGAAP)
Income statement highlights Q4 2022 (NGAAP) Revenues and EBITDA margin (NGAAP)* 12 month-rolling revenues (NGAAP)* NOK million NOK million 3 308 3 208 3 126 795 784 788 3 111 758 2 856 526 16% 15% 14% 14% 13% 13% 14% 13% 13% 12% Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 2022 Operating
Slide 16: Cash flow development Q4 2022
Cash flow development Q4 2022 NOK million 67 -135 159 -125 -187 775 613 Cash and cash Profit (loss) before Changes in inventories Changes in trade Other changes in Net change in Cash and cash equivalents at income taxes (property) receivables working capital borrowings equivalents at 30 September 20
Slide 17: Balance sheet highlights Q4 2022
Balance sheet highlights Q4 2022 Balance sheet composition NOK million · Book value of equity NOK 25.4 per share 5 950 5 950 6 000 - Equity ratio 39.4% Non-current assets · Changes from Q3 2022: 5 000 Equity - Inventories increased by NOK 148m 4 000 - Trade and Other receivables decreased by NOK 158
Slide 18: Inventories (property) Q4 2022
Inventories (property) Q4 2022 Q3 22 vs Q4 22 Inventory value development NOK million 150 170 166 119 130 · Land value down NOK 86m - Due to construction starts 3 199 2 872 3 154 3 189 3 384 · Work in progress up NOK 195m · Finished goods up NOK 40m 1 034 1 008 849 805 719 Q4 21 Q1 22 Q2 22 Q3 22 Q4
Slide 19: Valuation of remaining land bank
Valuation of remaining land bank* NOK million 502 1 218 716 Book value at 30.11.2022 Gap Valuation Nov 2022 (60 Grader Næringsmegling) * SBO land bank not included in the UP transaction 19
Slide 20: Debt structure
Debt structure Interest-bearing debt at 31.12.22 Drawn at NOK million 31.12.22 Interest rate Loan facility (NOKm) margin* Construction loan facilities from 1 1 678 1.65% - 2.40% a range of Nordic credit institutions 2 Debt to Urban Property** 582 3.75%*** NOK Land loan facilities from a range of 1 6
Slide 21: Earnings and dividend per share since IPO
Earnings and dividend per share since IPO Half year dividend and earnings per share Accumulated dividend and earnings per share 56.50 Earnings per share Earnings per share 52.87 52.80 Dividend per share Dividend per share 48.80 4.96 47.47 4.54 43.80 3.98 31.14 3.00 3.00 2.50 24.10 2.39 2.30 2.30 2.0
Slide 22: Return on equity (IFRS)
Return on equity (IFRS) 12-month rolling net income (NOKm) ROE (%) Q1 2020 Net income excluding Other gains of NOK 1 029m 770 739 655 613 610 567 586 520 530 530 512 495 505 471 479 466 366 326 339 27% 25% 24% 26% 20% 22% 21% 20% 20% 21% 23% 18% 17% 19% 19% 12% 14% 15% 14% Q2 18 Q3 18 Q4 18 Q1 19 Q2
Slide 23: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary
Slide 24: Estimated completions in Oslo well below forecasted need
Estimated completions in Oslo well below forecasted need Units 7 000 6 000 5 000 Forecasted housing need of Average number of ~3 300 units per year 4 000 completions (2012-22): (medium growth) ~2 900 units 3 000 3 060 2 780 2 000 2 030** 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 25: Estimated completions in Akershus
Estimated completions in Akershus* Units 7 000 Forecasted housing need of ~5 400 units per year (medium growth) 6 000 Average # of completions (2012-22): 5 000 ~4 600 units 5 680 5 480 5 010*** 4 000 3 000 2 000 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2024e 2025e Actual
Slide 26: Newbuild market update
Newbuild market update Oslo – 1.1,22 – 1.1. 23 Akershus – 1.1.22 – 1.1. 23 Units Units 3 614 3 748 1 926 1 839 3 595 3 461 1 105 1 192 Available Supplied to Sold* Available Available Supplied to Sold* Available 01.01.2022 market 01.01.2023 01.01.2022 market 01.01.2023 Source: SA – Hawii analyse. * I
Slide 27: Newbuild market update
Newbuild market update Bergen – 1.1.22 – 1.1.23 Trondheim – 1.1.22 – 1.1.23 Stavanger & Sandnes – 1.1.22 – 1.1.23 Units Units Units 1 254 1 392 592 818 860 816 858 1 005 612 656 867 632 Available Supplied to Sold* Available Available Supplied to Sold* Available Available Supplied to Sold* Available
Slide 28: Regional Newbuild availability on 1 January, 2021-23
Regional Newbuild availability on 1 January, 2021-23 Units 4 000 3 000 2 000 3461 1 000 1192 867 656 632 0 Oslo Akershus* Bergen Trondheim Stavanger & Sandnes 2021 2022 2023 Population** 700 000 686 000 287 000 211 000 226 000 Available units per 1.6 5.1 2.2 3.9 3.1 1 000 capita 2022 Source: Hawii a
Slide 29: Regional Second-hand inventory on 31 January, 2020-23
Regional Second-hand inventory on 31 January, 2020-23 Units 2 000 1 500 1 000 1844 1845 500 549 536 484 0 Oslo Akershus* Bergen Trondheim Stavanger-area** 2020 2021 2022 2023 Population*** 707 500 697 000 289 000 212 000 268 000 Available units per 2.6 2.6 1.9 2.5 1.8 1 000 capita 31.01.2023 Source:
Slide 30: Regional price development 2012-22
Regional price development 1.1-31.12, 2012-22** Oslo Bergen 23.4 % 11.5 % 13.0 % 12.0 % 10.6 % 6.3 % 5.5 % 10.7 % 2.0 % 1.8 % 7.8 % 8.5 % 6.6 % 1.9 % 2.7 % -6.1 % 0.9 % 1.3 % 1.2 % 0.3 % 0.5 % -11.1 % 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 31: Regional price development January, 2013-23
Regional price* development January, 2013-23** Oslo Bergen 6.4% 5.7% 5.3% 5.3% 4.7% 4.3% 4.4% 3.7% 3.9% 3.6% 3.2% 2.8% 2.7% 2.6% 2.8% 2.8% 2.4% 2.2% 1.6% 1.7% 1.7% 1.4% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Trondheim Stavanger-a
Slide 32: Ongoing and upcoming projects
Ongoing and upcoming projects Lørenskog stasjonsby | Skårerbyen | Greater Oslo Bjerke | Oslo Fornebu | Greater Oslo Greater Oslo · ~ 1 100 units total · ~ 1 500 units total · ~ 2 000 units total (JV) · ~ 2 000 units total · ~ 250 Pluss units · ~ 300 Pluss units · ~ 500 Pluss units · ~ 200 Pluss unit
Slide 33: Ongoing and upcoming projects
Ongoing and upcoming projects Ringve Pluss | Trondheim Sandsli | Bergen Minde | Bergen Fredrikstad | Greater Oslo · ~ 600 units total (JV) · ~ 600 units total · ~ 650 units (JV) · ~ 2 000 units (JV) · ~ 400 Pluss units · ~ 250 Pluss units · ~ 200 Pluss units · ~ 400 Pluss units · ~ 500 units remaini
Slide 34: Ongoing and upcoming projects
Ongoing and upcoming projects Landås | Greater Oslo Solbergskogen Pluss | Kaldnes Brygge| Greater Barkarby Pluss | Stockholm Greater Oslo Oslo · ~ 650 units total · ~ 300 units · ~ 1 500 units total (JV) · ~ 220 units · ~ 400 Pluss units · ~ 300 Pluss units · ~500 Pluss units · ~ 220 Pluss units · ~
Slide 35: Ongoing and upcoming projects
Ongoing and upcoming projects Lilleaker | Oslo Lørenvangen| Oslo Ballerud | Greater Oslo Lervig Brygge| Stavanger · ~ 150 units · ~ 200 units · ~ 160 units · ~ 800 units total · ~ Expected sales start: 2024 · Expected sales start: 2024 · Expected sales start: 2023 · ~ 200 Pluss units · ~ 200 units r
Slide 36: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary
Slide 37: Outlook
Outlook · Housing shortage in Oslo area provides favorable conditions for new housing · Increased viewing activity and positive sales development so far in 2023 · Improved momentum from easing of lending regulations · Expecting reduction in construction cost going forward · Well positioned for marke
Slide 38: Summary
Summary · Solid results considering few units delivered · Sales impacted by challenging market conditions · 146 construction starts vs. 160 completions, and increased value of units under construction · Construction costs falling · External valuation of remaining land bank of NOK 1.2bn vs. book valu
Slide 39: Thank you for your attention – follow us online!
Thank you for your attention – follow us online! Next event: 1st quarter 2023 @SelvaagAksjen 24 May 2023
Slide 40: Appendix
Appendix
Slide 41: Business model minimizes risk
Business model minimizes risk • Construction cost development Sales start Construction start - Increased due to geopolitical unrest and shortages after COVID-19 pandemic 3 – 9 months 12 – 24 months - New projects in certain areas postponed due to high construction costs - Construction costs now fall
Slide 42: Costs and majority of sales value fixed pre-construction
Costs and majority of sales value fixed pre-construction Illustrative risk profile at construction start of a NOK 100 million project with a 12% margin NOK billion 100 A price reduction of 30% on the remaining 40% of the units covers cost base and recovers equity given a 12% margin1. 88 40 Limited e
Slide 43: Costs and majority of sales value fixed pre-construction
Costs and majority of sales value fixed pre-construction Illustrative risk profile at construction start of a NOK 100 million project with a 20% margin NOK billion 100 A price reduction of 50% on the remaining 40% of the units covers cost base and recovers equity given a 20% margin1. 80 40 Limited e
Slide 44: Estimated completions in Oslo and Akershus
Estimated completions in Oslo and Akershus* Units 11 000 Forecasted housing need of ~8 700 units per year 10 000 (medium growth) 9 000 8 740 Average # of completions (2012-22): 8 260 8 000 ~7 500 units 7 050*** 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 45: Return on equity (IFRS)
Return on equity (IFRS) 12-month rolling net income (NOKm) ROE (%) 12-month 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 1 524 45% 586 586 530 505 512 495 530 505 512 471 479 466 471 479 466 339 339 24
Slide 46: Dividend policy
Dividend policy 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 com
Slide 47: Share performance since IPO in June 2012
Share performance since IPO in June 2012 NOK 70 60 50 40 30 20 Accumulated dividend paid: NOK 52.80 10 0 Share price Source: Oslo Børs. 47
Slide 48: Share information
Share information Number of shareholders 7 000 6 000 · Total number of shares: 93.8 million 5 000 · Number of shareholders: 5 784 (5 441)* - 20 largest controlling 81.3% (82.2) 4 000 - Selvaag AS largest shareholder - 53.5% 3 000 · Trading 2 000 - 6.2 million shares during the quarter (2.7), 6.6% of
Slide 49: Largest shareholders at 31.12, 2022
Largest shareholders at 31.12, 2022 Shareholder # of shares % share SELV AAG AS 50 180 087 53.5% Skandinaviska Enskilda Banken AB 4 796 067 5.1% PARETO INV EST NORGE AS 4 671 772 5.0% V ERDIPAPIRFONDET ALFRED BERG GAMBA 3 266 051 3.5% The Northern Trust Comp, London Br 2 186 000 2.3% JPMorgan Chase
Slide 50: Addressing the long term housing need
Addressing the long term housing need · Nearly 60 000 homes over the last 70 years Trondheim 272 units · Housing for all Bergen 558 units Greater-Oslo · Focus on fast growing urban regions 8 313 units Stockholm Stavanger 743 units · Large projects with more than 150 units 664 units 50
Slide 51: Substantial land bank in Norway's four largest growing urban areas
Substantial land bank in Norway’s four largest growing urban areas Land-bank strategy Land bank exposure Geographical spread • Acquire the right mix of zoned and unzoned land in suitable locations • Land acquisitions in defined core areas • High degree of site utilisation and strategic land developm
Slide 52: Change in needs calls for new concepts
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 lifest
Slide 53: Oslo second-hand market update
Oslo second-hand market update Units sold 1.1 - 31.12, 2012-22 Inventory 31.12, 2012-22 Units Units 25 000 6 000 5 000 20 000 4 000 15 000 3 000 10 000 2 000 5 000 1 000 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Eiendoms
Slide 54: Bergen second-hand market update
Bergen second-hand market update Units sold 1.1 - 31.12, 2012-22 Inventory 31.12, 2012-22 Units Units 8 000 2 000 7 000 6 000 1 500 5 000 4 000 1 000 3 000 2 000 500 1 000 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Eiendo
Slide 55: Trondheim second-hand market update
Trondheim second-hand market update Units sold 1.1 - 31.12, 2012-22 Inventory 31.12, 2012-22 Units Units 8 000 2 000 7 000 6 000 1 500 5 000 4 000 1 000 3 000 2 000 500 1 000 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Eie
Slide 56: Stavanger-area second-hand market update
Stavanger-area* second-hand market update Units sold 1.1 - 31.12, 2012-22 Inventory 31.12, 2012-22 Units Units 8 000 2 000 7 000 6 000 1 500 5 000 4 000 1 000 3 000 2 000 500 1 000 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sourc
Slide 57: Regional price development – January 2023
Regional price* development – January 2023 % chg. -1M Average Average price Area % chg -1M seasonal % chg YtD % chg -12m % chg -5Y % chg -10Y price/sqm (NOK) (NOK) adj. Oslo 2.8% 0.2% 2.8% -0.1% 30.9% 76.8% 88 198 6 219 698 Bergen 3.2% -0.6% 3.2% -1.8% 20.9% 39.6% 49 405 3 987 026 Trondheim 1.1% -1.
Slide 58: Land bank in Oslo and Greater Oslo at 31.12.22
Land bank in Oslo and Greater Oslo at 31.12.22 Bærum 1 783 units Jessheim 102 units Lørenskog 1 576 units Avløs 400 units Gardermovegen 102 units Lørenskog Stasjonsby 613 units 102 Ballerud 160 units units Skårer Bolig 325 units Løren/Økern/Ensjø 229 units Eyvind Lyches vei 123 units LSV 500 units S
Slide 59: Land bank in Stavanger area at 31.12.22
Land bank in Stavanger area at 31.12.22 Stavanger 174 units Lervig brygge 174 units Sola 154 units 154 Jaasund 154 units units 174 Stavanger units Sandnes 336 units Aase gård 36 units Sandnes Vågen 300 units Sola Sandnes 336 units *The numbers are adjusted for Selvaag Bolig’s share in joint ventures
Slide 60: Land bank in Bergen, Trondheim and Stockholm at 31.12.22
Land bank in Bergen, Trondheim and Stockholm at 31.12.22 Trondheim 272 units Heimdal 42 units Sweden Haakon VII gate 4 230 units 272 units Bergen 558 units Sandsliåsen 59 64 units Stockholm 743 units Sandsliåsen 46 150 units Løvholmen 50 units Finland Torvmyra 14 units Norway Årsta 150 units Kanalve
Slide 61: Cooperation with Urban Property from 1.1.2021
Cooperation with Urban Property from 1.1.2021 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. • How it works: • Benefits for Selvaag Bolig: - U
Slide 62: No equity investment in early phase through land bank cooperation with Urban Property
No equity investment in early phase through land bank cooperation with Urban Property Cooperation between Selvaag Bolig and Urban Property Acquisition of land Zoning Sales start Construction start Delivery Refine land for Marketing Project design Construction Delivery to customer development and sal
Slide 63: Business model securing healthy project margins
Business model securing healthy project margins Margin development through project stages1 Acquire and refine Contracting, marketing Project design Construction and sales Delivery to customers land for development and pre-sales · Buy (i) options on unzoned · Optimize project design · Pre-marketing ·
Slide 64: Example project calculations before and after
Example project calculations before and after PROJECT CALCULATIONS PROJECT CALCULATIONS 1 BEFORE URBAN PROPERTY 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
Slide 65: Project margin development 12 months rolling
Project margin development 12 months rolling NOK million 3 342 3 406 3 239 3 204 3 277 3 215 3 271 3 264 3 251 3 179 3 165 3 152 3 038 3 052 3 070 2 929 2 794 2 683 2 586 2 377 28% 28% 29% 28% 26% 26% 26% 27% 26% 27% 26% 25% 24% 23% 21% 20% 20% 19% 19% 19% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q
Slide 66: Substantial portfolio for development
Substantial portfolio for development Total land bank portfolio at 31.12.2022 Units 5 250 10 550 5 300 Total land bank Options and obligations to acquire Land bank in balance sheet 66
Slide 67: Value of units sold - gross and net
Value of units sold - gross and net Sales value of units sold NOK million 1 393 1 431 1 401 1 401 1 320 209 1 177 1 104 1 031 914 920 927 862 861 859 788 753 731 660 487 443 1 242 1 265 394 554 1 183 1 106 1 033 1 010 840 910 871 751 771 756 705 696 693 634 636 255 614 439 220 Q1 18 Q2 18 Q3 18 Q4 1
Slide 68: Number of units sold - gross and net
Number of units sold - gross and net Number of units sold Units 209 306 270 276 274 271 216 225 203 201 209 192 196 186 180 169 487 158 443 147 394 139 276 243 248 102 210 199 201 185 181 182 178 173 148 159 164 140 142 125 49 120 83 44 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3
Slide 69: Income statement IFRS
Income statement IFRS (figures in NOK million) Q4 2022 Q4 2021 2022 2021 Total operating revenues 668.8 1 553.8 2 896.4 3 402.7 Project expenses (514.4) (1 212.9) (2 313.7) (2 617.4) Other operating expenses (79.8) (78.0) (236.3) (236.4) Associated companies and joint ventures (8.2) 9.0 85.7 109.7 E
Slide 70: Balance sheet
Balance sheet (figures in NOK million) Q4 2022 Q3 2022 2021 Intangible assets 383.4 383.4 383.4 Property, plant and equipment 8.2 8.0 7.4 Investments in associated companies and joint ventures 234.7 235.7 354.7 Other non-current assets 345.3 315.1 302.3 Total non-current assets 971.6 942.2 1 047.7 I
Slide 71: Cash flow statement
Cash flow statement (figures in NOK million) Q4 2022 Q4 2021 2022 2021 Net cash flow from operating activities (51.6) 721.1 63.4 392.6 Net cash flow from investment activities (10.6) (2.0) 239.8 167.1 Net cash flow from financing activities (99.9) (801.4) (218.0) (917.6) Net change in cash and cash
Slide 72: Operational highlights – key operating figures
Operational highlights – key operating figures Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Units sold 276 201 120 83 44 Construction starts 456 113 190 68 146 Units completed 334 74 210 142 160 Units delivered 324 77 217 144 147 Units under construction 1 323 1 361 1 342 1 268 1 253 Proportion of sold units under
Slide 73: EBITDA Q4 2022
EBITDA Q4 2022 Property (figures in NOK million) development Other Total Operating revenues 506.8 18.9 525.7 Project expenses (374.0) 1.6 (372.4) Other operating expenses (13.4) (68.9) (82.3) EBITDA (percentage of completion) 119.4 (48.5) 70.9 Note: Construction costs are exclusive of financial expe
Slide 74: EBITDA FY 2022
EBITDA FY 2022 Property (figures in NOK million) development Other Total Operating revenues 2 794.4 61.7 2 856.0 Project expenses (2 234.3) 1.0 (2 233.3) Other operating expenses (35.0) (210.8) (245.8) EBITDA (percentage of completion) 525.1 (148.2) 377.0 Note: Construction costs are exclusive of fi
Slide 75: Norwegian housing market
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 worl
Slide 76: Total household debt and homeownership
Total household debt and homeownership 246% 244% 228% 222% 92% 81% 201% 81% 79% 77% 75% 75% 71% 71% 72% 69% 69% 65% 65% 64% 59% 154% 148% 55% 50% 127% 125% 124% 42% 118% 107% 99% 98% 93% 91% 82% 81% 77% Household debt in % of net disposable income (2021) Homeownership rate (2020) Source: OECD, Stati
Slide 77: Shift in demographics trigger new housing needs
Shift in demographics trigger new housing needs Annual population growth* by age Number of people by age in 2022 6% 200 000 150 000 4% 100 000 2% 50 000 0% 0 -2% OSLO STAVANGER BERGEN TRONDHEIM OSLO STAVANGER BERGEN TRONDHEIM 19-23 24-34 35-44 45-54 55-64 65-74 75+ 19-23 24-34 34-44 45-54 55-64 65-7
Slide 78: Price development Norway and selected regions (2005-23)
Price development Norway and selected regions (2005-23) Price development (rebased 1.1.2005) 350 300 250 200 150 100 50 Norway Oslo Bergen Stavanger-area* Trondheim Source: Eiendomsverdi. * Stavanger area includes: Randaberg, Sandnes, Sola, Stavanger. 78
Slide 79: Population growth in Oslo and Akershus remains high
Population growth in Oslo and Akershus remains high 54.8 % 55.2 % 45.2 % 46.1 % 42.4 % 42.2 % 43.4 % 40.7 % 38.2 % 34.7 % 35.4 % 35.3 % 25.4 % 25.5 % 32.8 % 25.3 % 24.9 % 25.1 % 24.6 % 24.8 % 24.5 % 24.2 % 24.3 % 24.0 % 23.7 % 23.9 % 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 S
Slide 80: Immigration increases demand over time
Immigration increases demand over time Homeownership rate among immigrants in Norway (per year living in Norway) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
Slide 81: Norway – relatively limited volatility
Norway – relatively limited volatility GDP growth 2018 - 2024e Unemployment 2018 - 2024e 10% 10% 8% 5% 6% 0% 4% -5% 2% -10% 0% 2018 2019 2020 2021 2022e 2023e 2024e 2018 2019 2020 2021 2022e 2023e 2024e Norway Sweden Denmark Germany UK Norway Sweden Denmark Germany UK Population growth 2021 - 2030e
Slide 82: Healthy macroeconomics
Healthy macroeconomics Real economy 2019 - 2025e Demand 2019 - 2025e 6% 10% 4% 5% 2% 0% 0% -5% -2% -4% -10% 2019 2020 2021 2022e 2023e 2024e 2025e 2019 2020 2021 2022e 2023e 2024e 2025e GDP GDP mainland Unemployment rate Mainland demand Household consumption Housing investment Wages & disposable inc
Slide 83: Selvaag Bolig
SELVAAG BOLIG