Selvaag Bolig Asa · OSL:SBO
Selvaag Bolig Asa — Q1 2023 Earnings Presentation
78 slides from Selvaag Bolig Asa's earnings presentation, May 24, 2023
Slide 1: Q1 2023
Q1 2023 Oslo, 24 May 2023 Sverre Molvik, CEO Christopher Brunvoll, CFO
Slide 2: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary 2
Slide 3: Highlights Q1 2023
Highlights Q1 2023 · Strong Q1 sales considering challenging market conditions · Solid results and healthy margins · Acquired new land plats for ~850 units in Bergen and Drammen Completed, ongoing and upcoming projects 3
Slide 4: Key financials Q1 2023
Key financials Q1 2023 734 14.9 Operating revenues Adjusted EBITDA* margin NOK million Per cent 595 12.0 Operating revenues (NGAAP) EBITDA** margin (NGAAP) NOK million Per cent * EBITDA is profit before interest, taxes, depreciation and amortization. EBITDA adjusted is excluding financial expenses i
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 1 033 Q4 634 658 Q3 439 Q2 220 5.1 5.3 5.3 5.7 Q1 243 248 5.0 201 164 116 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 2019 2020 2021 2022 2023 Total sales value Average sales value Note: Sales value is adjusted for Selvaag B
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 3 803 904 3 568 863 3 373 818 2 328 561 1 953 442 4.9 4.9 5.0 5.2 5.4 775 722 680 448 363 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Total sales value Average sales value *T
Slide 9: Construction starts and completions
Construction starts and completions Construction starts and completions per quarter Units 210 190 160 161 142 146 113 74 68 5 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 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 6 807 331 6 225 6 408 5 641 1 361 1 342 1 268 1 253 166 175 1 097 162 90 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 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 Q1 2023 (IFRS)
Income statement highlights Q1 2023 (IFRS) Operating revenues (IFRS) · 150 units delivered (77) NOK million - 13 units from share of JVs (1) · Revenues NOK 734m (356) 966 905 - Other revenues NOK 17m (14) 734 669 · Project costs NOK 580m (253) - Of which NOK 22m is interest (9) 356 · Other costs NOK
Slide 13: Income statement highlights Q1 2023 (NGAAP)
Income statement highlights Q1 2023 (NGAAP) Revenues and EBITDA margin (NGAAP)* 12 month-rolling revenues (NGAAP)* NOK million NOK million 3 208 3 126 784 788 3 111 758 2 856 2 693 595 526 15% 14% 14% 13% 13% 13% 13% 12% 12% 13% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022
Slide 14: Cash flow development Q1 2023
Cash flow development Q1 2023 NOK million 142 -136 86 -63 -177 613 411 Cash and cash Profit (loss) before Changes in inventories Other changes in CF from investment Net change in Cash and cash equivalents at income taxes (property) working capital activities borrowings equivalents at 31 December 202
Slide 15: Balance sheet highlights Q1 2023
Balance sheet highlights Q1 2023 Balance sheet composition NOK million · Book value of equity NOK 25.7 per share 6 000 5 747 5 747 - Equity ratio 42.0% Non-current assets · Changes from Q4 2022: 5 000 Equity - Inventories decreased by NOK 112m 4 000 - Trade and Other receivables increased by NOK 23m
Slide 16: Inventories (property) Q1 2023
Inventories (property) Q1 2023 Q4 22 vs Q1 23 Inventory value development NOK million 150 170 119 130 148 · Land value up NOK 7m · Work in progress down NOK 96m 3 199 3 154 3 189 3 384 3 288 - Due to few construction starts · Finished goods down NOK 22m 1 008 849 805 719 726 Q1 22 Q2 22 Q3 22 Q4 22
Slide 17: Debt structure
Debt structure Interest-bearing debt at 31.3.23 Drawn at NOK million 31.03.23 Interest rate Loan facility (NOKm) margin* Construction loan facilities from 1 1 547 1.65% - 2.40% a range of Nordic credit institutions 2 Debt to Urban Property** 587 3.75%*** NOK Land loan facilities from a range of 1 54
Slide 18: 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 770 739 655 613 610 567 586 520 530 530 512 495 505 471 479 466 366 366 339 27% 25% 24% 26% 20% 22% 21% 20% 20% 21% 23% 18% 17% 19% 19% 14% 15% 14% 15% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 19: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary
Slide 20: 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 ~3 300 units per year Average number of (medium growth) 4 000 completions (2012-22): ~2 900 units 3 000 2 765 2 329 3 000 2 700** 2 000 1 875 2 000** 1 000 0 2012 2013 2014 2015 2016 2017 2018
Slide 21: Estimated completions in Akershus
Estimated completions in Akershus* Units Forecasted housing need of 7 000 ~5 400 units per year (medium growth) 6 000 Average # of completions (2012-22): 5 000 ~4 600 units 5 923 5 900** 5 700 4 700** 4 000 3 000 2 000 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2 022 2023e 2024e 2025e
Slide 22: Newbuild market update
Newbuild market update Oslo – 1.1.2023 – 1.5.2023 Akershus – 1.1.2023 – 1.5.2023 Units Units 565 935 3 461 3 091 335 418 1 192 1 109 Available Supplied to Sold* Available Available Supplied to Sold* Available 01.01.2023 market 01.05.2023 01.01.2023 market 01.05.2023 Source: Hawii analyse. * Includin
Slide 23: Newbuild market update
Newbuild market update Bergen – 1.1.2023 – 1.5.2023 Trondheim – 1.1.2023 – 1.5.2023 Stavanger & Sandnes – 1.1.2023 – 1.5.2023 Units Units Units 291 312 333 402 63 209 867 846 632 563 656 510 Available Supplied to Sold* Available Available Supplied to Sold* Available Available Supplied to Sold* Avail
Slide 24: Regional Newbuild availability on 1 May, 2021-23
Regional Newbuild availability on 1 May, 2021-23 Units 4 000 3 000 2 000 3 091 1 000 1 109 846 688 510 0 Oslo Akershus* Bergen Trondheim Stavanger-area** 2021 2022 2023 Population*** 709 000 699 700 289 300 212 700 268 500 Available units per 1.6 4.4 1.8 4.0 2.6 1 000 capita 1.5.2023 Source: Hawii a
Slide 25: Regional Second-hand inventory on 1 May, 2020-23
Regional Second-hand inventory on 1 May, 2020-23 Units 2 500 2 000 1 500 1 000 1673 1600 500 581 538 438 0 Oslo Akershus* Bergen Trondheim Stavanger-area** 2020 2021 2022 2023 Population*** 709 000 699 700 289 300 212 700 268 500 Available units per 2.4 2.3 2.0 2.5 1.6 1 000 capita 1.5.2023 Source:
Slide 26: Regional price development 1.1-30.4, 2013-23
Regional price* development 1.1-30.4, 2013-23 Oslo Stavanger area** Average price April 2023: NOK 91 449/sqm Average price April 2023: NOK 42 787/sqm 10.2% 10.4% 9.7% 8.3% 7.3% 7.5% 6.8% 6.0% 6.2% 4.9% 4.8% 4.3% 4.1% 4.4% 3.2% 3.3% 2.1% 2.4% 1.0% 1.7% 1.4% 0.7% 2013 2014 2015 2016 2017 2018 2019 202
Slide 27: Regional price development April, 2013-2023
Regional price* development April, 2013-2023 Oslo Bergen 2.4% 2.4% 2.4% 2.8% 2.7% 2.2% 1.3% 1.8% 0.6% 0.7% 1.4% 1.2% 1.2% 0.0% 1.0% 0.8% 0.6% -0.1% 0.2% -0.7% -0.7% -0.6% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Trondheim Stavanger
Slide 28: 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 29: Ongoing and upcoming projects
Ongoing and upcoming projects Ringve Pluss | Trondheim Sandsli | Bergen Minde | Bergen Fredrikstad | Greater Oslo · ~ 600 units total (JV) · ~ 1 200 units* total · ~ 650 units (JV) · ~ 2 000 units (JV) · ~ 400 Pluss units · ~ 250 Pluss units · ~ 200 Pluss units · ~ 400 Pluss units · ~ 500 units rema
Slide 30: 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 31: 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 · ~ 180 units r
Slide 32: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary
Slide 33: 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 34: Summary
Summary · Strong Q1 sales considering challenging market conditions · Solid results and healthy margins · Acquired new land plats for ~850 units in Bergen and Drammen 34
Slide 35: Thank you for your attention – follow us online!
Thank you for your attention – follow us online! Next event: 2nd quarter 2023 @SelvaagAksjen 10 August 2023
Slide 36: Appendix
Appendix
Slide 37: 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 because margins are not satisfactory - Cost peak seems to ha
Slide 38: 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 million 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 39: 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 million 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 40: 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 41: 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 42: Share performance since IPO in June 2012
Share performance since IPO in June 2012 NOK 70 60 50 40 30 20 0.50 1.20 0.70 0.80 0.65 0.95 1.20 1.80 2.00 2.50 2.00 22.00 1.50 3.00 3.00 2.00 3.00 2.00 2.00 10 0 Share price Dividend Source: Oslo Børs. 42
Slide 43: Share information
Share information Number of shareholders 7 000 6 000 · Total number of shares: 93.8 million 5 000 · Number of shareholders: 6 049 (5 784)* - 20 largest controlling 79.3% (81.3) 4 000 - Selvaag AS largest shareholder - 53.5% 3 000 · Trading 2 000 - 9.3 million shares during the quarter (6.2), 10.0% o
Slide 44: Largest shareholders at 31.3.2023
Largest shareholders at 31.3.2023 Shareholder # of shares % share SELVAAG AS 50 180 087 53.5% PARETO INVEST NORGE AS 4 671 772 5.0% VERDIPAPIRFONDET ALFRED BERG GAMBA 3 266 051 3.5% The Northern Trust Comp, London Br * 2 186 000 2.3% JPMorgan Chase Bank, N.A., London * 1 912 218 2.0% SANDEN EQUITY A
Slide 45: Addressing the long term housing need
Addressing the long term housing need · Nearly 60 000 homes over the last 70 years Trondheim 267 units · Housing for all Bergen 1 558 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 45
Slide 46: 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 47: 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 48: Oslo second-hand market update
Oslo second-hand market update Units sold 1.1 - 31.3, 2013-23 Inventory 31.3, 2013-23 Units Units 6 000 6 000 5 000 5 000 4 000 4 000 3 000 3 000 2 000 2 000 1 000 1 000 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: Eiendoms
Slide 49: Bergen second-hand market update
Bergen second-hand market update Units sold 1.1 - 31.3, 2013-23 Inventory 31.3, 2013-23 Units Units 2 000 2 000 1 500 1 500 1 000 1 000 500 500 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: Eiendomsverdi. 49
Slide 50: Trondheim second-hand market update
Trondheim second-hand market update Units sold 1.1 - 31.3, 2013-23 Inventory 31.3, 2013-23 Units Units 2 000 2 000 1 500 1 500 1 000 1 000 500 500 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: Eiendomsverdi. 50
Slide 51: Stavanger-area second-hand market update
Stavanger-area* second-hand market update Units sold 1.1 - 31.3, 2013-23 Inventory 31.3, 2013-23 Units Units 2 000 2 000 1 500 1 500 1 000 1 000 500 500 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: Eiendomsverdi. * Includes
Slide 52: Regional price development – April 2023
Regional price* development – April 2023 % chg. -1M Average Average price Area % chg -1M seasonal % chg YtD % chg -12m % chg -5Y % chg -10Y price/sqm (NOK) (NOK) adj. Oslo 0.7% 1.0% 6.2% 1.2% 28.2% 81.8% 91 449 6 372 478 Bergen 1.2% 0.8% 7.9% 0.5% 22.6% 40.1% 53 990 4 233 073 Trondheim 1.3% 1.0% 5.2
Slide 53: Land bank in Oslo and Greater Oslo at 31.3.2023
Land bank in Oslo and Greater Oslo at 31.3.2023 Jessheim 102 units Lørenskog 1 576 units Bærum 1 783 units Gardermovegen 102 units Lørenskog Stasjonsby 613 units 102 Avløs 400 units units Skårer Bolig 325 units Løren/Økern/Ensjø 229 units Ballerud 160 units LSV 500 units Sinsenveien 79 units Eyvind
Slide 54: Land bank in Stavanger area at 31.3.2023
Land bank in Stavanger area at 31.3.2023 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 venture
Slide 55: Land bank in Bergen, Trondheim and Stockholm at 31.3.2023
Land bank in Bergen, Trondheim and Stockholm at 31.3.2023 Trondheim 267 units Heimdal 42 units Sweden Haakon VII gate 4 225 units 267 units Bergen 1 158 units Sandsliåsen 59 64 units Stockholm 743 units Sandsliåsen 46 150 units Løvholmen 50 units Finland Sandslihaugen 30 600 units Norway Årsta 150 u
Slide 56: 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 57: 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 58: 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 59: 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 60: Project margin development
Project margin development 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 2 586 2 629 2 377 28% 29% 28% 26% 26% 26% 27% 26% 27% 26% 25% 24% 23% 21% 20% 20% 19% 19% 19% 19% Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q
Slide 61: Substantial portfolio for development
Substantial portfolio for development Total land bank portfolio at 31.3.2023 Units 5 250 11 150 5 900 Total land bank Options and obligations to acquire Land bank in balance sheet 61
Slide 62: 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 1 031 914 920 927 862 861 859 874 731 753 660 487 443 1 242 1 265 394 554 1 183 1 106 1 033 1 010 840 910 871 751 771 756 705 696 614 634 636 255 658 439 220 Q2 18 Q3 18 Q4 18 Q1 1
Slide 63: Number of units sold - gross and net
Number of units sold - gross and net Number of units sold Units 209 306 270 276 274 271 225 203 201 209 192 196 186 180 169 487 158 443 152 147 139394 276 243 248 102 210 199 201 181 182 164 178 173 148 159 140 142 125 120 49 116 83 44 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 2
Slide 64: Q1 2023 proforma figures including proportionate share of JV
Q1 2023 proforma figures including proportionate share of JV Operating revenues (IFRS) NOK million · 150 units delivered (147) · Revenues NOK 785 (361) 1 420 - Other revenues NOK 19m (16) · Project costs NOK 634m (255) 914 785 - Of which NOK 24m is interest (9) 674 · Other costs NOK 66m (57) 361 · A
Slide 65: Income statement IFRS
Income statement IFRS (figures in NOK million) Q1 2023 Q1 2022 2022 Total operating revenues 734.2 356.2 2 896.4 Project expenses (579.9) (253.2) (2 313.7) Other operating expenses (57.9) (46.3) (236.3) Associated companies and joint ventures (8.7) (5.0) 85.7 EBITDA 87.7 51.8 432.1 Depreciation and
Slide 66: Balance sheet
Balance sheet (figures in NOK million) Q1 2023 Q1 2022 2022 Intangible assets 383.4 383.4 383.4 Property, plant and equipment 9.6 8.2 8.2 Investments in associated companies and joint ventures 231.5 239.4 234.7 Other non-current assets 435.1 340.5 345.3 Total non-current assets 1 059.5 971.5 971.6 I
Slide 67: Cash flow statement
Cash flow statement (figures in NOK million) Q1 2023 Q1 2022 2022 Net cash flow from operating activities 39.5 (308.5) 63.4 Net cash flow from investment activities (62.7) 86.4 239.8 Net cash flow from financing activities (178.6) 389.1 (218.0) Net change in cash and cash equivalents (201.8) 167.0 8
Slide 68: Operational highlights – key operating figures
Operational highlights – key operating figures Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Units sold 201 120 83 44 116 Construction starts 113 190 68 146 5 Units completed 74 210 142 160 161 Units deliv ered 77 217 144 147 150 Units under construction 1 361 1 342 1 268 1 253 1 097 Proportion of sold units under
Slide 69: EBITDA Q1 2023
EBITDA Q1 2023 Property (figures in NOK million) development Other Total Operating revenues 579.5 15.7 595.3 Project expenses (463.2) (0.4) (463.6) Other operating expenses (11.0) (49.0) (60.0) EBITDA (percentage of completion) 105.3 (33.7) 71.6 Note: Construction costs are exclusive of financial ex
Slide 70: 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 71: 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 72: 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 2023 20% 200 000 15% 150 000 10% 100 000 5% 50 000 0% 0 -5% -10% 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
Slide 73: 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. 73
Slide 74: Population growth in Oslo and Akershus remains high
Population growth in Oslo and Akershus remains high 60% 55% 55% 28% 50% 45% 44% 43% 42% 40% 27% 38% 40% 35% 37% 35% 35% 33% 25.7 % 26% 30% 25.5 % 25.3 % 25.1 % 24.9 % 24.8 % 25% 20% 24.6 % 24.5 % 24.2 % 24.3 % 24.0 % 23.9 % 24% 10% 23.7 % 0% 23% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 75: 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 76: Norway – relatively limited volatility
Norway – relatively limited volatility GDP growth 2018 - 2025e Unemployment 2018 - 2025e 15% 10% 10% 8% 5% 6% 0% 4% -5% -10% 2% -15% 0% 2018 2019 2020 2021 2022 2023e 2024e 2025e 2018 2019 2020 2021 2022e 2023e 2024e 2025e Norway Sweden Denmark Germany UK Norway Sweden Denmark Germany UK Population
Slide 77: Healthy macroeconomics
Healthy macroeconomics Real economy 2019 - 2026e Demand 2019 - 2026e 6% 10% 4% 5% 2% 0% 0% -5% -2% -4% -10% 2019 2020 2021 2022 2023e 2024e 2025e 2026e 2019 2020 2021 2022 2023e 2024e 2025e 2026e GDP GDP mainland Unemployment rate Mainland demand Household consumption Housing investment Wages & disp
Slide 78: Selvaag Bolig
SELVAAG BOLIG