Selvaag Bolig Asa · OSL:SBO
Selvaag Bolig Asa — Q3 2023 Earnings Presentation
79 slides from Selvaag Bolig Asa's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023
Q3 2023 Oslo, 9 November 2023 Sverre Molvik, CEO Christopher Brunvoll, CFO
Slide 2: Agenda
Agenda Highlights Operational update Financial update Market Summary 2
Slide 3: Highlights
Highlights · Successful sales starts in Greater Oslo and Stavanger · Satisfactory sales and result considering challenging market conditions · Construction costs lower than previous quarters, and is expected to decrease further 3
Slide 4: Key financials Q3 2023
Key financials Q3 2023 437 10.1 Operating revenues Adjusted EBITDA* margin NOK million Per cent 451 8.3 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 in
Slide 5: Agenda
Agenda Highlights Operational update Financial update Market Summary
Slide 6: Operational news
Operational news • Risk-minimizing sales model - Minimum presale of 60% before construction start Operating - Fixed construction cost secured for all units under construction model • Temporary adjustment to the operating model, adapting to market uncertainty - Additional contractual reservation: Con
Slide 7: 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 8: 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 9: Sales value and units sold
Sales value and units sold Sales value Number of units sold per quarter NOK million Units 658 Q4 439 440 159 Q3 125 178 83 220 Q2 479 77 Q1 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 2019 2020 2021 2022 2023 Sales value of sold units Units completed Annual sales 752 683 822 448 272 Note: Sales value is adjusted
Slide 10: 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 3 373 818 2 328 1 953 561 1 757 1 796 442 402 385 6.2 5.7 5.6 680 5.3 5.0 448 363 322 316 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Total sales value Sales value per unit s
Slide 11: Construction starts and completions
Construction starts and completions Construction starts and completions per quarter Units 160 161 162 142 146 90 83 68 57 5 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Construction starts Units completed Note: Number of units are adjusted for Selvaag Bolig’s share in joint ventures. 11
Slide 12: Units under construction and completions
Units under construction and completions Sales value units under construction Expected completions per quarter NOK million Units 6 225 6 408 331 5 641 5 458 5 292 214 1 268 1 253 169 1 097 1 018 985 127 5 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Sales value of units under construc
Slide 13: Agenda
Agenda Highlights Operational update Financial update Market Summary
Slide 14: Income statement highlights Q3 2023 (IFRS)
Income statement highlights Q3 2023 (IFRS) Operating revenues (IFRS) · 74 units delivered (144) NOK million - 1 unit from share of JVs (1) 905 837 · Revenues NOK 437m (905) 734 - Other revenues NOK 17m (15) 669 · Project costs NOK 346m (742) 437 - Of which NOK 18m is interest (29) · Other costs NOK
Slide 15: Income statement highlights Q3 2023 (NGAAP)
Income statement highlights Q3 2023 (NGAAP) Revenues and EBITDA margin (NGAAP)* 12 month-rolling revenues (NGAAP)* NOK million NOK million 788 3 126 2 856 2 693 2 451 595 526 542 2 114 451 13% 13% 13% 13% 12% 12% 12% 11% 10% 8% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023
Slide 16: Cash flow development Q3 2023
Cash flow development Q3 2023 NOK million 42 202 -312 26 -34 -94 392 193 Cash and cash Profit (loss) before Changes in Changes in trade Other changes in Net change in Dividends paid to Cash and cash equivalents at 30 income taxes inventories receivables working capital borrowings equity holders of e
Slide 17: Balance sheet highlights Q3 2023
Balance sheet highlights Q3 2023 Balance sheet composition NOK million · Book value of equity NOK 23.1 per share 6 000 5 437 5 437 - Equity ratio 40.1% 5 000 · Changes from Q2 2023: Non-current assets Equity - Inventories increased by NOK 72m 4 000 - Trade and other receivables decreased by 3 000 NO
Slide 18: Inventories (property) Q3 2023
Inventories (property) Q3 2023 Q2 2023 vs Q3 2023 Inventory value development NOK million 130 170 148 231 309 · Land value up NOK 6m · Work in progress down NOK 13m 3 189 3 384 3 288 - More units completed than started 2 960 2 947 · Finished goods up NOK 78m 805 719 726 687 693 Q3 2022 Q4 2022 Q1 20
Slide 19: Debt structure
Debt structure Interest-bearing debt at 30.9.23 Drawn at NOK million 30.9.23 Interest rate Loan facility (NOKm) margin* Construction loan facilities from 1 1 472 1.65% - 2.40% a range of Nordic credit institutions 2 Debt to Urban Property** 491 3.75%*** NOK Land loan facilities from a range of 1 472
Slide 20: 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 800 770 739 115% 700 655 613 610 600 567 586 95% 520 530 530 512 495 505 500 471 479 466 75% 400 366 366 55% 339 300 35% 241 200 27% 25% 24% 26% 182 15% 20% 22% 21% 20% 19% 20% 2
Slide 21: Agenda
Agenda Highlights Operational update Financial update Market Summary
Slide 22: 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 3 199 2 581** 2 000 2 042** 1 875 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 23: 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 5 923 5 941** completions (2012-22): 5 577 5 000 ~4 600 units 4 834** 4 000 3 000 2 000 1 000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023e 2024e 2025e
Slide 24: Newbuild market update
Newbuild market update Oslo – 1.1–1.11, 2023 Akershus – 1.1–1.11, 2023 Units Units 0 1 901 1 946 0 741 828 3 461 3 416 1 192 1 105 Available Supplied to Sold* Available Available Supplied to Sold* Available 01.01.2023 market 01.11.2023 01.01.2023 market 01.11.2023 Source: Hawii analyse. * Including
Slide 25: Newbuild market update
Newbuild market update Bergen – 1.1–1.11, 2023 Trondheim – 1.1–1.11, 2023 Stavanger area** – 1.1–1.11, 2023 Units Units Units 881 1 365 812 964 0 229 424 1 351 854 656 867 702 461 Available Supplied to Sold* Available Available Supplied to Sold* Available Available Supplied to Sold* Available 01.01.
Slide 26: Regional Newbuild availability on 1 November, 2021-23
Regional Newbuild availability on 1 November, 2021-23 Units 4,000 3,000 2,000 3 416 1 351 1,000 1 105 854 461 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 4.9 1.6 6.4 3.2 1 000 capita 1.11.2023 Source:
Slide 27: Regional Second-hand availability on 1 November, 2019-23
Regional Second-hand availability on 1 November, 2019-23 Units 3,500 3,000 3 050 2,500 2 635 2,000 1,500 1,000 935 960 500 520 0 Oslo Akershus* Bergen Trondheim Stavanger-area** 2019 2020 2021 2022 2023 Population*** 709 000 699 700 289 300 212 700 268 500 Available units per 3.7 4.4 3.2 4.5 2.0 1 0
Slide 28: Regional price development 1.1-31.10, 2013-23
Regional price development 1.1-31.10, 2013-23 Oslo Bergen Average price October 2023: NOK 88 742/sqm Average price October 2023: NOK 49 661/sqm 20.1% 11.1% 7.8% 7.3% 8.4% 4.7% 9.6% 2.4% 2.9% 2.9% 9.1% 8.6% 6.4% 4.6% 4.6% 4.7% 4.9% 3.8% 3.2% -4.0% 2.8% -8.9% 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 29: Selected ongoing projects
Selected ongoing projects Lørenskog stasjonsby ~2 000 units total ~200 Pluss units ~750 units remaining for sale Skårerbyen ~1 100 units total ~250 Pluss units ~400 units remaining for sale Trondheim Landås ~650 units total ~400 Pluss units ~450 units remaining for sale Bergen Greater-Oslo Stockholm
Slide 30: Selected ongoing projects
Selected ongoing projects Ringve Pluss ~600 units total (JV) ~400 Pluss units ~500 units remaining for sale Sandsli ~1 150 units total ~500 Pluss units ~1000 units remaining for sale Trondheim Lervig Brygge ~800 units total ~200 Pluss units ~150 units remaining for sale Bergen Greater-Oslo Solbergsk
Slide 31: Selected upcoming projects
Selected upcoming projects Lørenvangen ~200 units Potential sales start: 2024 Fredrikstad (JV) ~2 000 units ~400 Pluss units Potential sales start: 2024 Trondheim Lilleaker ~150 units Potential sales start: 2024 Bergen Greater-Oslo Stockholm Fornebu (JV) Stavanger ~2 000 units ~500 Pluss units Poten
Slide 32: Selected upcoming projects
Selected upcoming projects Bjerke ~1 500 units ~300 Pluss units Potential sales start: 2026 Hornsberg ~175 CITY units Potential sales start: 2025 Trondheim Nacka ~150 Pluss units Potential sales start: 2026 Bergen Greater-Oslo Stockholm Slakhusområdet Stavanger ~170 Pluss units Potential sales start
Slide 33: Agenda
Agenda Highlights Operational update Financial update Market Summary
Slide 34: Outlook
Outlook · Housing shortage in the Oslo area provides favorable conditions for new housing · Close to peak interest rate · Construction declined and is expected to decrease further · Well positioned for market recovery · ~430 units for sale on 1 November 2023 · Potential for sales start of ~680 addit
Slide 35: Summary
Summary · Successful sales starts in Greater Oslo and Stavanger · Satisfactory sales and result considering challenging market conditions · Construction costs lower than previous quarters, and is expected to decrease further 35
Slide 36: Thank you for your attention – follow us online!
Thank you for your attention – follow us online! Next event: 4th quarter 2023 @SelvaagAksjen 13 February 2024
Slide 37: Appendix
Appendix
Slide 38: 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) 8 975 9 000 8 522** Average # of completions (2012-21): ~7 500 units 7 798 8 000 6 876*** 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2012 2013 2014 2015 2016 2017 2018 20
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 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 40: 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 41: 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 57.8 56.5 Earnings per share Dividend per share 52.9 52.80 53.80 Selvaag Bolig’s ambition is to pay high and 47.5 48.80 stable dividends to its owners 43.80 · The company aims
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 2.00 2.00 2.00 1.00 10 0 Share price Dividend paid Source: Oslo Børs 43
Slide 44: Share information
Share information Number of shareholders 7 000 6 000 · Total number of shares: 93.8 million · Number of shareholders: 6 404 (6 370)* 5 000 - 20 largest controlling 79.3% (79.0%) 4 000 - Selvaag AS largest shareholder - 53.5% · Trading 3 000 - 3.7 million shares during the quarter (2.9), 4% of 2 000
Slide 45: Largest shareholders at 30.9.2023
Largest shareholders at 30.9.2023 Shareholder # of shares % share SELVAAG AS 50 180 087 53.5% PARETO INVEST NORGE AS 4 680 572 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 46: Addressing the long term housing need
Addressing the long term housing need Trondheim · Nearly 60 000 homes over the last 70 years 267 units · Housing for all Bergen 1 158 units Greater-Oslo 8 177 units · Focus on fast growing urban regions Stavanger Stockholm 918 units 664 units · Large projects with more than 150 units 46
Slide 47: 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 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, 2013-23 Inventory at 30.9, 2013-23 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 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 50: Akershus second-hand market update
Akershus* second-hand market update Units sold 1.1 - 30.9, 2013-23 Inventory at 30.9, 2013-23 Units Units 12 000 6 000 10 000 5 000 8 000 4 000 6 000 3 000 4 000 2 000 2 000 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
Slide 51: Bergen second-hand market update
Bergen second-hand market update Units sold 1.1 - 30.9, 2013-23 Inventory at 30.9, 2013-23 Units Units 7 000 2 000 6 000 1 500 5 000 4 000 1 000 3 000 2 000 500 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: Eiendomsver
Slide 52: Trondheim second-hand market update
Trondheim second-hand market update Units sold 1.1 - 30.9, 2013-23 Inventory at 30.9, 2013-23 Units Units 5 000 2 000 4 500 4 000 1 500 3 500 3 000 2 500 1 000 2 000 1 500 500 1 000 500 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 53: Stavanger-area second-hand market update
Stavanger-area* second-hand market update Units sold 1.1 - 30.9, 2013-23 Inventory at 30.9, 2013-23 Units Units 4 500 2 000 4 000 3 500 1 500 3 000 2 500 1 000 2 000 1 500 500 1 000 500 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 54: Regional price development – October 2023
Regional price* development – October 2023 % chg. -1M Average Average price Area % chg -1M seasonal % chg YtD % chg -12m % chg -5Y % chg -10Y price/sqm (NOK) (NOK) adj. Oslo -0.8% -0.5% 2.9% 1.7% 25.4% 87.3% 88 742 6 243 156 Bergen -0.6% -0.1% 2.8% -1.5% 19.5% 36.8% 49 661 4 091 872 Trondheim -0.7%
Slide 55: Regional price development October, 2013-23
Regional price* development October, 2013-23 Oslo Bergen 2.4% 1.0% 1.0% 0.8% 1.2% 0.8% 0.1% 0.2% -0.2% -0.6% -0.3% -0.4% -0.7% -0.8% -0.8% -0.7% -0.6% -1.1% -1.3% -2.3% -1.7% -3.2% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Trondheim
Slide 56: Land bank in Oslo and Greater Oslo at 30.9.23
Land bank in Oslo and Greater Oslo at 30.9.23 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 Ballerud 160 units LSV 500 units Løren 150 units Eyvind Lyches vei 123 units Pallplassen 13
Slide 57: Land bank in Stavanger area at 30.9.23
Land bank in Stavanger area at 30.9.23 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 58: Land bank in Bergen, Trondheim and Stockholm at 30.9.23
Land bank in Bergen, Trondheim and Stockholm at 30.9.23 Trondheim 267 units Heimdal 42 units Sweden Haakon VII gate 4 225 units 267 units Bergen 1 158 units Sandsliåsen 59 64 units Stockholm 918 units Sandsliåsen 46 150 units Løvholmen 50 units Finland Sandslihaugen 30 600 units Norway Årsta 150 uni
Slide 59: 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 60: 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 61: 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 2 821 2 629 2 386 28.6 % 28.0 % 26.3 % 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 % 18.3 % Q
Slide 62: Substantial portfolio for development
Substantial portfolio for development Total land bank portfolio at 30.9.2023 Units 5 250 11 200 5 950 Total land bank Options and obligations to acquire Land bank in balance sheet 62
Slide 63: 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 63
Slide 64: Value of units sold - gross and net
Value of units sold - gross and net Sales value of units sold NOK million 1 431 1 401 209 1 320 1 393 1 177 1 401 1 104 1 031 927 914 859 920 660 731 487 753 443 874 1 242 1 265 394 1 183 1 106 1 033 543 1 010 554 564 840 910 871 756 705 696 614 634 636 658 255 439 440 479 220 Q4 18 Q1 19 Q2 19 Q3 1
Slide 65: Number of units sold - gross and net
Number of units sold - gross and net Number of units sold Units 209 306 270 276 274 271 225 209 192 196 186 180 169 487 158 443 152 147 139 394 276 243 248 102 99 210 199 201 85 159 164 178 173 148 140 142 49 125 120 116 83 79 77 44 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q
Slide 66: Income statement IFRS
Income statement IFRS (figures in NOK million) Q3 2023 Q3 2022 9M 2023 9M 2022 2022 Total operating revenues 436.8 905.4 2 008.0 2 227.5 2 896.4 Project expenses (345.9) (742.1) (1 634.3) (1 799.3) (2 313.7) Other operating expenses (59.7) (52.9) (172.8) (156.4) (236.3) Associated companies and join
Slide 67: Balance sheet
Balance sheet (figures in NOK million) Q3 2023 Q2 2023 Q3 2022 2022 Intangible assets 383.4 383.4 383.4 383.4 Property, plant and equipment 10.0 9.9 8.0 8.2 Investments in associated companies and joint ventures 217.2 219.0 235.7 234.7 Other non-current assets 551.4 500.1 315.1 345.3 Total non-curre
Slide 68: Cash flow statement
Cash flow statement (figures in NOK million) Q3 2023 Q3 2022 9M 2023 9M 2022 2022 Net cash flow from operating activities 243.8 126.1 381.7 115.0 63.4 Net cash flow from investment activities (10.1) 119.2 (67.5) 250.4 239.8 Net cash flow from financing activities (432.6) (180.0) (733.9) (118.1) (218
Slide 69: Operational highlights – key operating figures
Operational highlights – key operating figures Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Units sold 83 44 116 79 77 Construction starts 68 146 5 83 57 Units completed 142 160 161 162 90 Units delivered 144 147 150 155 74 Units under construction 1 268 1 253 1 097 1 018 985 Proportion of sold units under constru
Slide 70: EBITDA Q3 2023
EBITDA Q3 2023 Property (figures in NOK million) development Other Total Operating revenues 435.1 16.3 451.5 Project expenses (351.8) (0.5) (352.3) Other operating expenses (11.1) (50.7) (61.8) EBITDA (percentage of completion) 72.1 (34.8) 37.3 Note: Construction costs are exclusive of financial exp
Slide 71: EBITDA 9M 2023
EBITDA 9M 2023 Property (figures in NOK million) development Other Total Operating revenues 1,539.9 48.5 1,588.4 Project expenses (1,244.9) (1.4) (1,246.3) Other operating expenses (32.4) (146.8) (179.2) EBITDA (percentage of completion) 262.6 (99.7) 162.9 Note: Construction costs are exclusive of f
Slide 72: 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 · 80% (one of the worl
Slide 73: Total household debt and homeownership
Total household debt and homeownership 247% 227% 93% 211% 207% 82% 78% 195% 78% 76% 77% 71% 73% 74% 73% 70% 70% 64% 64% 63% 60% 150% 147% 51% 126% 121% 47% 42% 116% 113% 102% 100% 89% 88% 84% 82% 80% 73% Household debt in % of net disposable income (2022) Homeownership rate (2022) Source: OECD, Stat
Slide 74: 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. 75
Slide 75: Population growth in Oslo and Akershus remains high
Population growth in Oslo and Akershus remains high 171% 25.7 % 25.3 % 25.4 % 25.3 % 25.1 % 24.8 % 24.9 % 24.6 % 24.5 % 24.2 % 24.3 % 24.0 % 23.7 % 23.9 % 55% 55% 43% 42% 45% 46% 38% 40% 35% 35% 33% 35% 18% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Share of total populati
Slide 76: 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 77: Norway – relatively limited volatility
Norway – relatively limited volatility GDP growth 2019 - 2025e Unemployment 2019 - 2025e 10% 10% 5% 8% 6% 0% 4% -5% 2% -10% 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 - 2030e
Slide 78: Healthy macroeconomics
Healthy macroeconomics Real economy 2020 - 2026e Demand 2020 - 2026e 6% 10% 4% 5% 0% 2% -5% 0% -10% -2% -15% -4% -20% 2020 2021 2022 2023e 2024e 2025e 2026e 2020 2021 2022 2023e 2024e 2025e 2026e GDP GDP mainland Unemployment rate Mainland demand Household consumption Housing investment Wages & disp
Slide 79: Selvaag Bolig
SELVAAG BOLIG