Selvaag Bolig Asa · OSL:SBO
Selvaag Bolig Asa — Q3 2022 Earnings Presentation
81 slides from Selvaag Bolig Asa's earnings presentation, Nov 10, 2022
Slide 1: Q3 2022
Q3 2022 Oslo, 10 November 2022 Sverre Molvik, CEO Christopher Brunvoll, CFO
Slide 2: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary 2
Slide 3: Highlights
Highlights · Satisfactory sales in Q3 considering challenging market conditions · Solid Q3 results · Construction cost have peaked Completed, ongoing and upcoming projects 3
Slide 4: Key financials Q3 2022
Key financials Q3 2022 905 15.1 Operating revenues Adjusted EBITDA* margin NOK million Per cent 788 12.2 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: 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 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 Q4 634 634 159 Q3 182 125 439 178 83 Q2 5.1 5.1 5.3 5.3 4.6 Q1 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 2018 2019 2020 2021 2022 Total sales value Average sales value # of units 547 612 484 546 404 sold YtD No
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 3 757 3 803 863 826 818 3 566 3 373 5.0 4.9 4.9 4.9 5.0 821 775 745 722 680 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 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 456 334 318 210 190 148 142 113 74 68 Q3 21 Q4 21 Q1 22 Q2 22 Q3 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 7 034 354 6 736 6 807 6 200 6 225 1 323 1 361 1 342 178 1 201 1 268 160 161 51 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Sales value Number of units unde
Slide 11: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary
Slide 12: Income statement highlights Q3 2022 (IFRS)
Income statement highlights Q3 2022 (IFRS) Operating revenues (IFRS) · 144 units delivered (314) NOK million - 1 unit from share of JVs (89) 1 554 · Revenues NOK 905m (887) - Other revenues NOK 15m (19) · Project costs NOK 742m (699) 887 966 905 - Of which NOK 29m is interest (32) · Other costs NOK
Slide 13: Q3 2022 proforma figures including proportionate share of JV
Q3 2022 proforma figures including proportionate share of JV Operating revenues (IFRS) NOK million · 144 units delivered (314) 1 681 · Revenues NOK 914 (1 337) 1 420 - Other revenues NOK 17m (22) 1 337 · Project costs NOK 746m (1 067) 914 - Of which NOK 29m is interest (48) · Other costs NOK 62m (64
Slide 14: Income statement highlights Q3 2022 (NGAAP)
Income statement highlights Q3 2022 (NGAAP) Revenues and EBITDA margin (NGAAP)* 12 month-rolling revenues (NGAAP)* NOK million NOK million 774 795 784 788 3 462 758 3 308 3 208 3 111 3 126 17% 16% 15% 14% 15% 14% 14% 13% 13% 12% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Operating r
Slide 15: Cash flow development Q3 2022
Cash flow development Q3 2022 NOK million 119 -187 107 -135 130 709 775 Cash and cash Profit (loss) before Changes in trade Other changes in CF from investment Dividends paid to Cash and cash equivalents at income taxes receivables working capital activities equity holders of equivalents at 30 June
Slide 16: Balance sheet highlights Q3 2022
Balance sheet highlights Q3 2022 Balance sheet composition NOK million · Book value of equity NOK 24.3 per share 6 000 - Equity ratio 37.5% Non-current assets · Changes from Q2 2022: 5 000 Equity - Inventories increased by NOK 3m 4 000 - Trade and Other receivables increased by NOK 134m 3 000 Curren
Slide 17: Inventories (property) Q3 2022
Inventories (property) Q3 2022 Q2 22 vs Q3 22 Inventory value development NOK million 109 150 166 119 130 · Land value down NOK 44m 3 584 3 199 2 872 · Work in progress up NOK 36m 3 154 3 189 · Finished goods up NOK 11m 955 1 034 1 008 849 805 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Land (undeveloped) Work in
Slide 18: Debt structure
Debt structure Interest-bearing debt at 30.9.22 Drawn at NOK million 30.9.22 Interest rate Loan facility (NOKm) margin* Construction loan facilities from 1 1 743 1.65% - 2.40% a range of Nordic credit institutions 2 Debt to Urban Property** 587 3.75%*** NOK 1 743 Land loan facilities from a range of
Slide 19: 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 770 739 655 613 610 567 586 520 530 530 512 495 505 471 479 466 356 366 326 27% 25% 24% 26% 20% 22% 21% 20% 20% 21% 23% 18% 17% 19% 19% 13% 12% 14% 15% Q1 18 Q2 18 Q3 18 Q4 18 Q1
Slide 20: Agenda
Agenda Highlights Operational update Financial update Market Outlook and summary
Slide 21: 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 (2006-21): ~2 900 units 3 000 2 945 2 858** 2 000 2 404 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Slide 22: 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 5 000 completions (2006-21): 5 869 5 608*** ~4 000 units 5 414 4 000 3 000 2 000 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e 2023e 2024e Actual compl
Slide 23: Newbuild market update
Newbuild market update Oslo – 1.1 – 31.10, 2022 Akershus – 1.1 - 31.10, 2022 Units Units 3 367 3 443 1 678 1 688 3 595 3 518 1 105 1 095 Available Supplied to Sold* Available Available Supplied to Sold* Available 01.01.2022 market 31.10.2022 01.01.2022 market 31.10.2022 Source: SA – Hawii analyse. I
Slide 24: Newbuild market update
Newbuild market update Bergen – 1.1 - 31.10, 2022 Trondheim – 1.1 - 31.10, 2022 Stavanger & Sandnes – 1.1 - 31.10, 2022 Units Units Units 1 036 557 1 218 741 800 774 858 1 005 674 612 638 823 Available Supplied to Sold* Available Available Supplied to Sold* Available Available Supplied to Sold* Avai
Slide 25: Regional Newbuild availability on 31 October, 2020-22
Regional Newbuild availability on 31 October, 2020-22 Units 4 000 3 000 2 000 3518 1 000 1095 638 823 674 0 Oslo Akershus* Bergen Trondheim Stavanger & Sandnes 2020 2021 2022 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 31.10.2022 Source:
Slide 26: Regional Second-hand inventory on 31 October, 2019-22
Regional Second-hand inventory on 31 October, 2019-22 Units 2 500 2 000 1 500 2357 1 000 2061 500 796 665 570 0 Oslo Akershus* Bergen Trondheim Stavanger-area** 2019 2020 2021 2022 Population*** 700 000 685 000 287 000 210 000 265 000 Available units per 3.5 3.1 2.8 3.2 2.1 1 000 capita August 2022
Slide 27: Regional price development 1.1-31.10, 2012-22
Regional price* development 1.1-31.10, 2012-22 Oslo Stavanger area** 20.1% 11.1% 11.3% 9.0% 8.4% 9.1% 7.8% 7.3% 7.9% 7.8% 4.7% 2.4% 2.9% 3.6% 1.7% 0.6% 0.9% 0.5% -1.3% -4.0% -4.9% -8.9% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Tron
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) · ~ 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 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 · ~ 220 units · ~ 300 units · ~ 1 500 units total (JV) · ~ 400 Pluss units · ~ 220 Pluss units · ~ 300 Pluss units · ~500 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 · ~ 200 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 · Expecting reduction in construction cost going forward · More than 400 units for sale and plans for additional sales starts · Well positioned for market recovery, with approximately 775 units ready for market in
Slide 34: Summary
Summary · Satisfactory sales in Q3 considering challenging market conditions · Solid Q3 results · Construction costs have peaked * Pay-out on August 31, 2021 34
Slide 35: Thank you for your attention – follow us online!
Thank you for your attention – follow us online! Next event: 4th quarter 2022 @SelvaagAksjen 14 February 2023
Slide 36: Appendix
Appendix
Slide 37: 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 8 814 8 466*** 8 000 Average # of completions (2006-21): 7 818 ~6 900 units 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 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 billion 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 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 billion 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 40: 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 1 558 1 524 51% 586 45% 586 530 495 530 505 512 530 505 512 471 479 466 471 479
Slide 41: 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 55.17 52.87 Earnings per share Earnings per share 50.80 48.80 Dividend per share Dividend per share 47.47 4.96 43.80 4.54 3.98 31.14 3.00 3.00 2.50 24.10 2.39 2.30 2.30 2.0
Slide 42: 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 43: 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 3.00 10 0 Share price Dividend Source: Oslo Børs. 43
Slide 44: Share information
Share information Number of shareholders 6 000 5 000 · Total number of shares: 93.8 million · Number of shareholders: 5 441 (5 127)* 4 000 - 20 largest controlling 82.2% (82.8) 3 000 - Selvaag AS largest shareholder - 53.5% · Trading 2 000 - 2.7 million shares during the quarter (2.2), 2.9% of total
Slide 45: Largest shareholders at 30.9, 2022
Largest shareholders at 30.9, 2022 Shareholder # of shares % share SELVAAG AS 50 180 087 53.5% Skandinav iska Enskilda Banken AB * 5 992 724 6.4% PARETO INVEST NORGE AS 4 361 772 4.7% VERDIPAPIRFONDET ALFRED BERG GAMBA 3 266 051 3.5% The Northern Trust Comp, London Br * 2 186 000 2.3% JPMorgan Chase
Slide 46: Addressing the long term housing need
Addressing the long term housing need · Nearly 60 000 homes over the last 70 years Trondheim 278 units · Housing for all Bergen 633 units Greater-Oslo · Focus on fast growing urban regions 8 054 units Stockholm Stavanger 820 units · Large projects with more than 150 units 688 units 46
Slide 47: Positioned to realize large projects in Norway's four largest growing urban areas
Positioned to realize large projects 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 strategi
Slide 48: 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 49: Oslo second-hand market update
Oslo second-hand market update Units sold 1.1 - 30.9, 2010-22 Inventory 30.9, 2010-22 Units Units 18 000 6 000 16 000 5 000 14 000 12 000 4 000 10 000 3 000 8 000 6 000 2 000 4 000 1 000 2 000 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 202
Slide 50: Bergen second-hand market update
Bergen second-hand market update Units sold 1.1 - 30.9, 2010-22 Inventory 30.9, 2010-22 Units Units 6 000 2 000 5 000 1 500 4 000 3 000 1 000 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: Eiendomsverdi. 50
Slide 51: Trondheim second-hand market update
Trondheim second-hand market update Units sold 1.1 - 30.9, 2010-22 Inventory 30.9, 2010-22 Units Units 6 000 2 000 5 000 1 500 4 000 3 000 1 000 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: Eiendomsverdi. 51
Slide 52: Stavanger-area second-hand market update
Stavanger-area* second-hand market update Units sold 1.1 - 30.9, 2010-22 Inventory 30.9, 2010-22 Units Units 6 000 2 000 5 000 1 500 4 000 3 000 1 000 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: Eiendomsver
Slide 53: Regional price development - October 2022
Regional price* development - October 2022 % chg. -1M Average Avefage price Area % chg -1M seasonal % chg YtD % chg -12m % chg -5Y % chg -10Y price/sqm (NOK) (NOK) adj. Oslo -3.2% -1.9% 2.9% 2.8% 29.4% 81.2% 86 256 6 160 824 Bergen -0.4% -0.1% 4.9% 2.8% 21.5% 46.9% 50 299 4 218 757 Trondheim -1.2% -
Slide 54: Regional price development October, 2012-22
Regional price* development October, 2012-22 Oslo Bergen 2.4% 1.0% 1.0% 1.2% 0.4% 0.8% 0.8% 0.1% 0.2% -0.2% -0.7% -0.8% -0.6% -0.3% -0.3% -0.4% -0.7% -1.1% -1.3% -2.3% -1.7% -3.2% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Trondheim
Slide 55: Land bank in Oslo and Greater Oslo at 30.9.22
Land bank in Oslo and Greater Oslo at 30.9.22 Jessheim 102 units Lørenskog 1 666 units Bærum 1 731 units Gardermovegen 102 units Lørenskog Stasjonsby 613 units 102 Avløs 500 units units Skårer Bolig 415 units Løren/Økern/Ensjø 279 units Ballerud 160 units LSV 500 units Sinsenveien 129 units Eyvind L
Slide 56: Land bank in Stavanger area at 30.9.22
Land bank in Stavanger area at 30.9.22 Stavanger 178 units Lervig brygge 178 units Sola 154 units 154 Jaasund 154 units units 178 Stavanger units Sandnes 356 units Aase gård 35 units Sandnes Vågen 300 units Sola Luratoppen 21 units Sandnes 356 units *The numbers are adjusted for Selvaag Bolig’s shar
Slide 57: Land bank in Bergen, Trondheim and Stockholm at 30.9.22
Land bank in Bergen, Trondheim and Stockholm at 30.9.22 Trondheim 278 units Heimdal 42 units Sweden Haakon VII gate 4 236 units 278 units Bergen 633 units Sandsliåsen 57 64 units Stockholm 820 units Sandsliåsen 59 65 units Løvholmen 50 units Finland Sandsliåsen 46 150 units Norway Årsta 170 units To
Slide 58: 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 59: 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 60: 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 61: 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 62: 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 2 683 2 586 2 377 28% 28% 29% 28% 26% 26% 26% 27% 26% 27% 26% 25% 24% 23% 21% 20% 20% 19% 19% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
Slide 63: Substantial portfolio for development
Substantial portfolio for development Total land bank portfolio at 30.9.2022 Units 5 250 10 500 5 250 Total land bank Options and obligations to acquire Land bank in balance sheet 63
Slide 64: Valuation of remaining land bank
Valuation of remaining land bank* NOK million 519 1 426 907 Book value at 31.12.2021 Gap Valuation Nov 2021 (60 Grader Næringsmegling) * SBO land bank not included in the UP transaction 64
Slide 65: 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 1 010 840 910 871 751 771 756 705 696 693 634 636 614 439 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19
Slide 66: Number of units sold - gross and net
Number of units sold - gross and net Number of units sold Units 209 306 270 276 274 271 216 225 203 201 209 192 196 186 180 169 487 158 443 147 394 139 276 243 248 102 210 199 201 185 181 182 178 173 148 159 164 140 142 125 120 83 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4
Slide 67: Income statement IFRS
Income statement IFRS (figures in NOK million) Q3 2022 Q3 2021 9M 2022 9M 2021 2021 Total operating revenues 905.4 886.9 2 227.5 1 848.9 3 402.7 Project expenses (742.1) (698.5) (1 799.3) (1 404.5) (2 617.4) Other operating expenses (52.9) (53.8) (156.4) (158.4) (236.4) Associated companies and join
Slide 68: Balance sheet
Balance sheet (figures in NOK million) Q3 2022 Q2 2022 2021 Intangible assets 383.4 383.4 383.4 Property, plant and equipment 8.0 8.1 7.4 Investments in associated companies and joint ventures 235.7 349.2 354.7 Other non-current assets 315.1 300.5 302.3 Total non-current assets 942.2 1 041.2 1 047.7
Slide 69: Cash flow statement
Cash flow statement (figures in NOK million) Q3 2022 Q3 2021 9M 2022 9M 2021 2021 Net cash flow from operating activities 126.1 174.5 115.0 (328.6) 392.6 Net cash flow from investment activities 119.2 133.4 250.4 169.1 167.1 Net cash flow from financing activities (180.0) (278.3) (118.1) (116.2) (91
Slide 70: Operational highlights – key operating figures
Operational highlights – key operating figures Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Units sold 125 276 201 120 83 Construction starts 148 456 113 190 68 Units completed 318 334 74 210 142 Units delivered 314 324 77 217 144 Units under construction 1 201 1 323 1 361 1 342 1 268 Proportion of sold units unde
Slide 71: EBITDA Q3 2022
EBITDA Q3 2022 Property (figures in NOK million) development Other Total Operating revenues 774.8 13.4 788.1 Project expenses (636.5) (0.2) (636.7) Other operating expenses (4.9) (50.4) (55.3) EBITDA (percentage of completion) 133.4 (37.2) 96.1 Note: Construction costs are exclusive of financial exp
Slide 72: EBITDA 9M 2022
EBITDA 9M 2022 Property (figures in NOK million) development Other Total Operating revenues 2 287.6 42.8 2 330.4 Project expenses (1 860.3) (0.6) (1 860.9) Other operating expenses (21.5) (141.9) (163.5) EBITDA (percentage of completion) 405.8 (99.7) 306.0 Note: Construction costs are exclusive of f
Slide 73: 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 74: 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 75: 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 2020 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+ 16-23 24-34 34-44 45-54 55-64 65-7
Slide 76: Price development Norway and selected regions (2005-22)
Price development Norway and selected regions (2005-22) 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. 76
Slide 77: Population growth in Oslo and Akershus remains high
Population growth in Oslo and Akershus remains high 55% 55% 45% 46% 43% 42% 43% 40% 38% 35% 35% 35% 33% 25.4 % 25.5 % 25.3 % 25.1 % 24.8 % 24.9 % 24.6 % 24.5 % 24.2 % 24.3 % 24.0 % 23.7 % 23.9 % 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e Share of total population in Oslo and A
Slide 78: 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 79: 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 80: 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 81: SELVAAG BOLIG
SELVAAG BOLIG