Selvaag Bolig Asa · OSL:SBO
Selvaag Bolig Asa — Q2 2024 Earnings Presentation
88 slides from Selvaag Bolig Asa's earnings presentation, Aug 8, 2024
Slide 1: Q2 2024
Q2 2024 Oslo, 8 August 2024 Sverre Molvik, CEO Christopher Brunvoll, CFO
Slide 2: Agenda
Agenda Highlights Operational update Financial update Market Summary 2
Slide 3: Highlights
Highlights · Highest quarterly sales value ever · Very strong second-hand market and inventories at normal/low levels · Solid results at NOK 0.85 per share, considering challenging market conditions · Construction cost level allows for more sales starts moving forward · Dividend decision postponed,
Slide 4: Key financials Q2 and H1 2024
Key financials Q2 and H1 2024 Q2 2024 First half 2024 620 19.9 1 248 18.4 Operating revenues Adjusted EBITDA* margin Operating revenues Adjusted EBITDA* margin NOK million Per cent NOK million Per cent 603 8.0 1 150 8.1 Operating revenues (NGAAP) EBITDA** margin (NGAAP) Operating revenues (NGAAP) EB
Slide 5: Agenda
Agenda Highlights Operational update Financial update Market Summary
Slide 6: Operational news
Operational news Construction • Construction costs stabilized, allowing for more sales starts moving forward costs - Several new contracts signed - Several contracts under negotiation Sales • All-time high quarterly sales value in Q2 and solid momentum entering Q3 • ~425 units for sale on 1 August •
Slide 7: Sales value and units sold
Sales value and units sold Sales value Number of units sold per quarter NOK million Units 1 385 Q4 760 Q3 531 173 440 479 120 207 6.7 Q2 142 6.2 6.0 5.6 5.5 79 Q1 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 2020 2021 2022 2023 2024 Sales value of sold units Average price per unit Annual sales 683 822 448 360 YTD:
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 3 154 2 210 2 108 573 1 757 1 796 435 437 402 385 5.9 6.2 5.5 5.7 5.8 511 360 383 322 316 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Total sales value Sales value per unit s
Slide 9: Construction starts and completions
Construction starts and completions Construction starts and completions per quarter Units 331 236 162 130 123 105 90 95 83 57 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Construction starts 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 5 458 5 292 4 496 4 211 3 948 169 1 018 985 784 671 661 48 18 5 0 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Sales value of units under construction (NO
Slide 11: Agenda
Agenda Highlights Operational update Financial update Market Summary
Slide 12: Income statement highlights Q2 2024 (IFRS)
Income statement highlights Q2 2024 (IFRS) Operating revenues (IFRS) · 127 units delivered (155) NOK million - 58 units from share of JVs (1) · Revenues NOK 620m (837) 1 247 - One-off property sales of NOK 230m (63) - Other revenues NOK 20m (17) 837 628 620 · Project costs NOK 490m (709) 437 - Of wh
Slide 13: Q2 2024 proforma figures including proportionate share of JV
Q2 2024 proforma figures including proportionate share of JV Operating revenues (IFRS) · 127 units delivered (155) NOK million · Revenues NOK 979m (841) 1 392 - One-off property sales of NOK 230m (63) - Other revenues NOK 22m (19) 979 841 868 · Project costs NOK 797m (710) - Of which NOK 57m is fina
Slide 14: Income statement highlights H1 2024 (IFRS)
Income statement highlights H1 2024 (IFRS) Operating revenues (IFRS) NOK million · 306 units delivered (305) 1 685 1 574 1 571 - 110 units from share of JVs (14) 1 322 1 248 · Revenues NOK 1 248m (1 571m) - One-off property sales of NOK 234m (63) - Other revenues NOK 37m (34) · Adjusted EBITDA* NOK
Slide 15: H1 2024 proforma figures including proportionate share of JV
H1 2024 proforma figures including proportionate share of JV Operating revenues (IFRS) NOK million · 306 units delivered (305) 1 781 1 794 1 847 1 589 1 626 · Revenues NOK 1 847m (1 626) - One-off property sales of NOK 234m (63) - Other revenues NOK 41m (38) · Adjusted EBITDA** NOK 305m (210) · EBIT
Slide 16: Income statement highlights Q2 2024 (NGAAP)
Income statement highlights Q2 2024 (NGAAP) Revenues and EBITDA margin (NGAAP)* 12 month-rolling revenues (NGAAP)* NOK million NOK million 603 565 2 451 542 547 2 114 2 153 2 105 2 166 451 12% 11% 10% 9% 8% 8% 8% 8% 8% 7% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 202
Slide 17: Cash flow development Q2 2024
Cash flow development Q2 2024 NOK million 54 -27 92 -94 208 199 Cash and cash Profit (loss) before income Share of profits/(losses) Changes in inventories Dividends paid to equity Cash and cash equivalents at 31 March taxes from associated (property) holders of Selvaag Bolig equivalents at 30 June c
Slide 18: Balance sheet highlights Q2 2024
Balance sheet highlights Q2 2024 Balance sheet composition NOK million · Book value of equity NOK 25 per share 5 000 4 543 4 543 - Equity ratio 51.7% Non-current assets · Changes from Q1 2024: 4 000 Equity - Inventories decreased by NOK 34m 3 000 - Other current receivables increased by NOK 15m 2 00
Slide 19: Inventories (property) Q2 2024
Inventories (property) Q2 2024 Q2 2024 vs Q1 2024 Inventory value development NOK million · Land value down NOK 29m 231 357 · Work in progress up NOK 190m 518 648 · Finished goods down NOK 196m 844 2 960 2 899 - 119 unsold completed units 2 014 1 462 1 652 - 41 sold and completed units, but not deli
Slide 20: Debt structure
Debt structure Interest-bearing debt at 30.6.24 Drawn at NOK million 30.06.24 Interest rate Loan facility (NOKm) margin* Construction loan facilities from 1 746 1.65% - 2.40% a range of Nordic credit institutions 2 Debt to Urban Property** 437 3.75%*** NOK Land loan facilities from a range of 3 35 1
Slide 21: Earnings and dividend per share since IPO
Earnings and dividend per share since IPO Accumulated dividend and earnings per share* Aiming to maximize shareholder return 60.5 59.1 Earnings per share 56.5 Dividend per share 52.9 52.80 54.80 54.80 Selvaag Bolig’s ambition is to pay high and 48.80 stable dividends to its owners 47.5 43.80 · The c
Slide 22: Return on equity (IFRS)
Return on equity (IFRS) 12-month rolling net income (NOKm) ROE (%) 600 586 530 115% 505 512 500 479 466 95% 400 366 75% 339 300 55% 263 241 245 235 35% 200 182 24% 26% 23% 15% 20% 21% 19% 100 14% 15% 12% 10% 8% 10% 10% -5% 0 -25% Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 2
Slide 23: Agenda
Agenda Highlights Operational update Financial update Market 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 ~3 300 units per year Average number of (medium growth) 4 000 completions (2012-22): ~2 900 units 3 000 3 183 2 000 2 281 1 859** 1 671** 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 25: Estimated completions in Akershus
Estimated completions in Akershus Units Forecasted housing need of ~5 700 units per year 7 000 (medium growth) 6 000 Average # of completions (2012-22): ~4 600 units 5 000 5 252 4 931 4 751** 4 585** 4 000 3 000 2 000 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2,023 2024e 2025e 2
Slide 26: Estimated completions in Oslo and Akershus
Estimated completions in Oslo and Akershus Units 11 000 Forecasted housing need of ~9 000 units per year 10 000 (medium growth) 9 000 Average # of completions (2012-23): 8 435 8 000 ~7 600 units 7 212 7 000 6 422** 6 444** 6 000 5 000 4 000 3 000 2 000 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019
Slide 27: Newbuild market update
Newbuild market update Oslo – 1.1–1.8, 2024 Akershus – 1.1–1.8, 2024 Units Units 1,885 1,988 737 784 3 436 3 333 1 037 990 Available Supplied to Sold* Available Available Supplied to Sold* Available 01.01.2024 market 01.08.2024 01.01.2024 market 01.08.2024 Source: Plot.ai * Including withdrawals 27
Slide 28: Newbuild market update
Newbuild market update Bergen – 1.1–1.8, 2024 Trondheim – 1.1–1.8, 2024 Stavanger area** – 1.1–1.8, 2024 Units Units Units 670 653 793 727 400 517 1 227 1 293 741 758 556 439 Available Supplied to Sold* Available Available Supplied to Sold* Available Available Supplied to Sold* Available 01.01.2024
Slide 29: Regional Newbuild availability on 1 August, 2022-24
Regional Newbuild availability on 1 August, 2022-24 Units 4,000 3,000 2,000 3,333 1,000 1,293 990 758 556 0 Oslo Akershus* Bergen Trondheim Stavanger-area** 2022 2023 2024 Population*** 718 000 729 000 292 000 215 000 273 000 Available units per 1.4 4.6 1.9 6.0 2.8 1 000 capita 1.08.2024 Source: Plo
Slide 30: Regional Second-hand availability on 1 Aug, 2019-24
Regional Second-hand availability on 1 Aug, 2019-24 Units 2,500 2 299 2,000 1 950 1,500 1,000 976 500 633 356 0 Oslo Akershus Bergen Trondheim Stavanger* 2019 2020 2021 2022 2023 2024 Population** 718 000 729 000 292 000 215 000 273 000 Available units per 2.7 3.2 2.2 4.5 1.3 1 000 capita Source: Ei
Slide 31: Regional price development July, 2020-24
Regional price* development July, 2020-24 Oslo Bergen Average price July 2024: NOK 97 844/sqm Average price July 2024: NOK 59 141/sqm 1.3% 1.1% 0.1% 0.0% -0.2% -0.6% -1.0% -0.9% -1.2% -2.6% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Trondheim Stavanger-area** Average price July 2024: NOK 59 3
Slide 32: Regional YTD price development per 31 July, 2020-24
Regional YTD price* development per 31 July, 2020-24 Oslo Bergen 9.2% 8.1% 8.0% 7.2% 6.8% 6.7% 6.5% 5.4% 4.2% 3.1% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Trondheim Stavanger-area** 9.9 % 9.4 % 8.8% 9.0 % 8.7 % 8.3 % 7.3% 6.0% 4.1% 2.1% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Sou
Slide 33: Selected ongoing projects
Selected ongoing projects Snøbyen, Lørenskog stasjonsby | Greater Oslo Barkarby | Stockholm ~ 2 000 units total ~ 220 Pluss units total ~ 200 Pluss units ~ 210 units remaining ~ 750 units remaining Skårerbyen | Greater Oslo Sandsli | Bergen ~ 1 100 units total ~ 1 150 units total ~ 250 Pluss units ~
Slide 34: Selected upcoming projects
Selected upcoming projects Robust project pipeline to meet long term demand Solheimsvatnet Pluss (JV) | Nacka | Stockholm Lilleaker | Oslo Bergen ~150 Pluss units ~ 150 units ~ 220 Pluss units (2026) (2025) (2024) Fornebu (JV) | Greater Oslo Lørenvangen | Oslo Hornsberg| Stockholm ~ 2 000 units ~ 20
Slide 35: Agenda
Agenda Highlights Operational update Financial update Market Summary
Slide 36: Outlook
Outlook · Housing shortage in Oslo and Akershus gives favorable conditions for new housing · Interest rates are expected to fall from H2 2024 · Market conditions have improved enabling more construction starts going forward · Well positioned for market recovery · ~425 units for sale on 1 August 2024
Slide 37: Summary
Summary · Highest quarterly sales value ever · Very strong second-hand market and inventories at normal/low levels · Solid results at NOK 0.85 per share, considering challenging market conditions · Construction cost level allows for more sales starts moving forward · Dividend decision postponed, due
Slide 38: Thank you for your attention – follow us online!
Thank you for your attention – follow us online! Next event: 3rd quarter 2024 @SelvaagAksjen 7 November 2024
Slide 39: Appendix
Appendix
Slide 40: Selvaag Bolig is a housing development company
Selvaag Bolig is a housing development company which focuses on the growth areas in and around Greater Oslo, Bergen, Stavanger, Trondheim and Stockholm
Slide 41: This is Selvaag Bolig
This is Selvaag Bolig VISION Making cities of the future better MISSION Making it easier for more people to live better AMBITION Contributing to inclusive local communities and facilitating sustainable lifestyles Being a safe, solid and competent partner, always delivering on promises. PROMISES Selv
Slide 42: Led by experienced management team
Led by experienced management team Sverre Molvik Christopher Brunvoll Øystein Klungland Kristoffer Gregersen Line Lian Mjell Chief Executive Officer Chief Financial Officer Chief Operating Officer EVP Communications and EVP Market Sustainability 42
Slide 43: Selvaag Bolig is a story about development
Selvaag Bolig is a story about development The Ekeberg The Gullhaug Modular Listed at Oslo House House construction Stock Exchange Terraced Pluss: Housing buildings with extra services Housing for all 1948 1951 1958 1988 1999 2000 2003 2011 2012 2015 2017 2019 Urban Property transaction Defined hous
Slide 44: Efficient and flexible value chain
Efficient and flexible value chain Contracting, Acquire and refine Construction and Project design marketing Delivery to customers land for development sales and pre-sales 6 – 36 MONTHS 6 – 12 MONTHS 3 – 9 MONTHS 12 – 24 MONTHS 0 MONTHS ZONING SALES START CONSTRUCTION START DELIVERIES · Buy (i) opti
Slide 45: 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 Limited equity risk 100 A price reduction of 30% on the remaining 40% of the units covers cost base and recovers equity given a 12% marg
Slide 46: 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 Limited equity risk 100 A price reduction of 50% on the remaining 40% of the units covers cost base and recovers equity given a 20% marg
Slide 47: Strategic positioning driving healthy profits
Strategic positioning driving healthy profits Strategic priorities Value drivers · Presence in fast-growing urban regions with high demand and large market depth Competitive housing offering, targeting growth regions · Competitive prices and defined housing concepts, aimed at wide range of consumers
Slide 48: ~9 000 homes completed since IPO…
~9 000 homes completed since IPO… Units completed 9 191 8 447 7 861 6 994 6 303 5 527 4 673 3 983 3 147 2 319 1 396 718 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Note: Completed ~50 000 units from 1948 to 2011. 48
Slide 49: …for a total value of NOK ~36 billion
…for a total value of NOK ~36 billion NOK billion 36.4 33.1 30.2 26.8 24.1 20.8 17.4 14.2 11.2 8.0 5.0 2.8 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 49
Slide 50: Project margin development
Project margin development NOK million 3 342 3 406 3 251 3 239 3 179 3 204 3 277 3 215 3 271 3 165 3 264 3 152 3 038 3 052 3 070 2 794 2 629 2 386 2 047 2 088 2 040 2 099 28.6 % 28.0 % 26.6 % 26.3 % 27.5 % 27.0 % 26.3 % 25.3 % 24.0 % 23.0 % 21.2 % 20.3 % 19.6 % 19.0 % 18.5 % 18.8 % 18.8 % 18.6 % 18.
Slide 51: Net profit per unit delivered
Net profit per unit delivered Quarterly net profit per unit delivered 12 months rolling net profit per unit delivered NOK million NOK million 276 684.0 655.0 656.0 596.0 526.0 179 155 127 0.63 0.40 0.40 0.35 0.37 0.34 74 0.39 0.33 0.31 0.26 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4
Slide 52: Net profit per unit delivered
Net profit per unit delivered Quarterly net profit per unit delivered Annual net profit per unit delivered* NOK million NOK million 276 894 732 720 0.89 655 179 585 155 0.69 127 0.56 0.58 0.63 0.37 74 0.39 0.33 0.31 0.26 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 2019 2020* 2021 2022 2023 Units deliver
Slide 53: Dividend policy
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 forecast
Slide 54: 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 3.00 2.00 3.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 10 0 Share price Dividend paid Source: Oslo Børs 54
Slide 55: Share information
Share information* Number of shareholders 8 000 7 000 · Total number of shares: 93.8 million 6 000 · Number of shareholders: 6 742 (6 699) - 20 largest controlling 81.1% (81.2%) 5 000 - Selvaag AS largest shareholder - 53.5% 4 000 · Trading 3 000 - 2.2 million shares during the quarter (4.7), 2.4% o
Slide 56: Largest shareholders at 30.6.2024
Largest shareholders at 30.6.2024 Shareholder # of shares % share SELVAAG AS 50,180,087 53.5% Skandinaviska Enskilda Banken AB * 4,680,572 5.0% PERESTROIKA AS 3,443,837 3.7% VERDIPAPIRFONDET ALFRED BERG GAMBA 3,266,051 3.5% The Northern Trust Comp, London Br * 2,186,000 2.3% EGD CAPITAL AS 1,704,752
Slide 57: Addressing the long-term housing need
Addressing the long-term housing need Trondheim 332 units · Nearly 60 000 homes over the last 70 years · Housing for all Bergen 1 125 units Greater-Oslo 7 216 units · Focus on fast growing urban regions Stavanger Stockholm 539 units 947 units · Large projects with more than 150 units 57
Slide 58: 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 59: 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 60: Oslo second-hand market update
Oslo second-hand market update Units sold 1.1 – 30.6, 2013-24 Inventory at 30.6, 2013-24 Units Units 14 000 6 000 12 000 5 000 10 000 4 000 8 000 3 000 6 000 2 000 4 000 2 000 1 000 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Source: Eiendomsverdi 60
Slide 61: Akershus second-hand market update
Akershus second-hand market update Units sold 1.1 – 30.6, 2013-24 Inventory at 30.6, 2013-24 Units Units 8 000 6 000 7 000 5 000 6 000 4 000 5 000 4 000 3 000 3 000 2 000 2 000 1 000 1 000 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Source: Eiendomsverdi. 61
Slide 62: Bergen second-hand market update
Bergen second-hand market update Units sold 1.1 – 30.6, 2013-24 Inventory at 30.6, 2013-24 Units Units 4 500 2 000 4 000 1 800 3 500 1 600 1 400 3 000 1 200 2 500 1 000 2 000 800 1 500 600 1 000 400 500 200 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Source: Eiendomsverdi. 62
Slide 63: Trondheim second-hand market update
Trondheim second-hand market update Units sold 1.1 – 30.6, 2013-24 Inventory at 30.6, 2013-24 Units Units 3 500 2 000 1 800 3 000 1 600 2 500 1 400 1 200 2 000 1 000 1 500 800 1 000 600 400 500 200 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Source: Eiendomsverdi. 63
Slide 64: Stavanger-area second-hand market update
Stavanger-area* second-hand market update Units sold 1.1 – 30.6, 2013-24 Inventory at 30.6, 2013-24 Units Units 3 500 2 000 1 800 3 000 1 600 2 500 1 400 1 200 2 000 1 000 1 500 800 1 000 600 400 500 200 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Source: Eiendomsverdi. * Include
Slide 65: Regional price development – July 2024
Regional price* development – July 2024 % chg. -1M Average Average price Area % chg -1M seasonal % chg YtD % chg -12m % chg -5Y % chg -10Y price/sqm (NOK) (NOK) adj. Oslo 0.0% 0.2% 6.7% 3.4% 28.1% 86.3% 97 844 5 887 849 Bergen -0.9% 0.3% 9.2% 6.5% 24.7% 40.8% 59 141 3 900 767 Trondheim -1.8% -0.8% 4
Slide 66: Land bank in Oslo and Greater Oslo at 30.6.24
Land bank in Oslo and Greater Oslo at 30.6.24 Jessheim 102 units Lørenskog 1 358 units Bærum 1 208 units Gardermovegen 102 units Lørenskog Stasjonsby 632 units 102 Avløs 100 units units Skårer Bolig 206 units Ballerud 108 units LSV 400 units Løren 165 units Fornebu 900 units Pallplassen 120 units Lø
Slide 67: Land bank in Stavanger area at 30.6.24
Land bank in Stavanger area at 30.6.24 Stavanger 70 units Lervig brygge 70 units Sola 133 units 133 Jaasund 133 units units 70 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 68: Land bank in Bergen, Trondheim and Stockholm at 30.6.24
Land bank in Bergen, Trondheim and Stockholm at 30.6.24 Trondheim 332 units Heimdal 42 units Sweden Haakon VII gate 4 290 units 332 units Bergen 1 125 units Sandsliåsen 59 64 units Stockholm 947 units Sandsliåsen 46 140 units Løvholmen 50 units Finland Sandslihaugen 30 600 units Norway Årsta 140 uni
Slide 69: Cooperation with Urban Property
Cooperation with Urban Property Selvaag Bolig sold most of its land bank to Urban Property, 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: - Urban Property has a right of f
Slide 70: 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 71: 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 72: 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 73: Substantial portfolio for development
Substantial portfolio for development Total land bank portfolio at 31.3.2024 Units 5 250 10 150 4 900 Total land bank Options and obligations to acquire Land bank in balance sheet 73
Slide 74: Value of units sold - gross and net
Value of units sold - gross and net Sales value of units sold NOK million 1,574 1,393 1,431 1,401 1,401 1,320 209 1,177 1,104 1,031 914 920 927 859 874 868 731 753 487 443 602 1 385 1 242 1 265 554 564 394 543 1 183 1 106 1 033 1 010 840 910 871 756 705 696 760 634 636 255 658 479 531 439 440 220 Q1
Slide 75: Number of units sold - gross and net
Number of units sold - gross and net Number of units sold Units 209 306 270 276 274 271 235 225 209 192 196 186 180 169 487 147 443152 154 139 394 276 243 248 102 99 99 210 199 201 85 207 159 164 178 173 140 142 125 49 139 120 116 83 79 77 88 44 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21
Slide 76: Income statement IFRS
Income statement IFRS (figures in NOK million) Q2 2024 Q2 2023 1H 2024 1H 2023 Total operating revenues 620.2 836.9 1 247.9 1 571.1 Project expenses (489.9) (708.6) (1 005.8) (1 288.5) Other operating expenses (58.8) (55.2) (119.6) (113.1) Associated companies and joint ventures 27.4 (7.2) 44.3 (15.
Slide 77: Balance sheet
Balance sheet (figures in NOK million) Q2 2024 Q1 2024 2023 Intangible assets 383.4 383.4 383.4 Property, plant and equipment 12.2 12.6 9.8 Investments in associated companies and joint ventures 244.0 228.6 230.0 Other non-current assets 650.3 589.6 580.1 Total non-current assets 1 290.0 1 214.2 1 2
Slide 78: Cash flow statement
Cash flow statement (figures in NOK million) 1H 2024 1H 2023 2023 Net cash flow from operating activities 235.0 137.9 1 196.6 Net cash flow from investment activities 25.9 (57.4) (45.3) Net cash flow from financing activities (328.4) (301.3) (1 497.5) Net change in cash and cash equivalents (67.6) (
Slide 79: EBITDA Q2 2024
EBITDA Q2 2024 Property (figures in NOK million) development Other Total Operating revenues 583.5 19.5 602.9 Project expenses (494.3) 0.5 (493.8) Other operating expenses (10.8) (49.9) (60.7) EBITDA (percentage of completion) 78.3 (29.9) 48.4 Note: Construction costs are exclusive of financial expen
Slide 80: Operational highlights – key operating figures
Operational highlights – key operating figures Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Units sold 79 77 88 139 207 Construction starts 83 57 130 123 95 Units completed 162 90 331 236 105 Completed unsold units 43 60 95 126 119 Completed sold units pending delivery 11 10 30 56 41 Units delivered 155 74 276 179
Slide 81: 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 82: 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 83: Price development Norway and selected regions (2005-23)
Price development Norway and selected regions (2005-23) Price development (rebased 1.1.2005) 350 300 50 00 50 00 50 0 005 006 00 008 009 0 0 0 0 0 3 0 0 5 0 6 0 0 8 0 9 0 0 0 0 0 3 0 Bergen Norge Oslo Stavanger m omegn Trondheim Source: Eiendomsverdi. * Stavanger area includes: Randaberg, Sandnes, S
Slide 84: Population growth in Oslo and Akershus remains high
Population growth in Oslo and Akershus remains high 58% 55% 55% 45% 46% 43% 42% 40% 25.6 % 38% 25.4 % 35% 35% 25.3 % 25.3 % 35% 25.1 % 33% 24.9 % 24.6 % 24.8 % 24.5 % 24.2 % 24.3 % 24.0 % 23.7 % 23.9 % 18% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Share of total populatio
Slide 85: 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 86: Norway – relatively limited volatility
Norway – relatively limited volatility GDP growth 2019 - 2025e Unemployment 2019 - 2025e 15% 10% 10% 8% 5% 6% 0% 4% -5% -10% 2% -15% 0% 2019 2020 2021 2022 2023e 2024e 2025e 2019 2020 2021 2022 2023e 2024e 2025e Norway Sweden Denmark Germany UK Norway Sweden Denmark Germany UK Population growth 2022
Slide 87: Healthy macroeconomics
Healthy macroeconomics Real economy 2019 - 2026e Demand 2019 - 2026e 6% 15% 10% 4% 5% 2% 0% 0% -5% -10% -2% -15% -4% -20% 2020 2021 2022 2023 2024e 2025e 2026e 2027e 2020 2021 2022 2023 2024e 2025e 2026e 2027e GDP GDP mainland Unemployment rate Mainland demand Household consumption Housing investmen
Slide 88: SELVAAG BOLIG
SELVAAG BOLIG