Company presentation

May 2020 Rolf Thorsen, CEO Sverre Molvik, CFO Selvaag Bolig is a housing development company which focuses on the growth areas in and around Greater , , , Trondheim and Long-term housing development

· Nearly 60 000 homes over the last 70 years · Urban development, large projects in growing regions · Housing for all, competitive housing offering ’s leading homebuilder

· 1 431 units worth NOK 6 742 million under construction - 76% sold by Q1 20

· 164 units sold in Q1 20 Trondheim 369 units · Q1 20 adjusted IFRS EBITDA margin of 56.1% · Only projects with more than 150 units Bergen · Focus on fast growing urban regions 741 units Greater-Oslo 9 704 units Stockholm Stavanger 125 units 1 004 units

Note: The numbers represent the size of the land portfolio as at 31 December 2019. All numbers are adjusted for Selvaag Bolig’s share in joint ventures. 1) Greater Oslo area: Oslo, Akershus, Buskerud, Vestfold and Østfold, 2) The residential property development portfolio consists of land plots that are to be paid for when planning permission is received. The portfolio has a development potential of ~6 100 residential units, whereof the company has purchasing obligations for ~6 000 and purchasing options for ~100 units. 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 FUTURE

Urban Property transaction Defined housing concepts

Industrial Veitvet Sold homes for production area NOK 3.2 billion Løren area

50 000 homes completed

5 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 world’s highest) · Economic benefits for home owners - 23% of mortgage loan interest payments are tax deductible - Transfer stamp duty for new houses is lower than for second-hand homes · Strong population growth - Norway’s urban areas are among the fastest growing in Europe - Good demand for new homes

6 Norway – robust economic conditions

GDP growth 2012 - 2022e Unemployment 2012 - 2022e

8% 10%

8% 3% 6%

4% -3% 2012 2013 2014 2015 2016 2017 2018 2019 2020e 2021e 2022e 2%

-8% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020e 2021e 2022e Norway Sweden Germany UK Norway Sweden Germany UK

Population growth 2020 - 2030e and 2040e Interest rates* 2012 - 2021e

2% 04 % UK 07 % 2% -01 % 1% Germany -02 % 1% 05 % 0% Sweden 09 % -1% 09 % Norway -1% 16 % 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e 2030 2040 Norway Sweden EU UK

Source: Bloomberg, UN * Central bank rates 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) options on unzoned · Plan and prepare · 60% pre-sale before start- · Fixed-price contracts with · Target 100% sale at delivery land or (ii) ready-to-build for construction up reputable counterpart land · Prices on remaining 40% · Lever acquired land increased gradually during to improve ROE sell-out phase · Construction costs financed with construction loans Low-risk business model creates healthy profits

Strategy Value drivers

· Presence in fast-growing urban regions with high demand and large market depth Competitive housing offering, · Competitive prices, addressing large customer base targeting growth regions · Defined housing concepts, aimed at wide range of consumers

· Value appreciation through refinement of land for housing development Large, actively-managed land bank, · Flexibility to develop thousands of homes in growing urban regions owned by partner Urban Property · Active asset management · Partnership reduces invested capital and strengthens ability to buy land

· No in-house construction arm; improves flexibility and cost optimisation Efficient and flexible · Project-based business model improves flexibility and reduces risk cost structure · Economies of scale through large projects · Lean organisation reduces overhead

Capital-efficient business model · 60% pre-sale before construction start lowers project financing need and inventory risk backed by strong balance sheet · Sound debt structure and financial flexibility Positioned to realize large projects in Norway’s four largest growing urban areas

Land-bank strategy Land bank exposure

· Acquire the right mix of zoned and un-zoned land in Geographical spread suitable locations · Land acquisitions in defined core areas in co-operation with Urban Property · High degree of site utilization and strategic land development Trondheim 369 units · Substantial land bank to accommodate targets/growth in core areas · Good infrastructure and public transport Bergen · Joint ventures (JVs) 741 units Greater-Oslo 9 704 units Stockholm Stavanger 125 units 1 004 units Note: The numbers represent the size of the land portfolio as at 31 March 2020. All numbers are adjusted for Selvaag Bolig’s share in joint ventures. 1) Greater Oslo area: Oslo, Akershus, Buskerud, Vestfold and Østfold, 2) The residential property development portfolio consists of land plots that are to be paid for when planning permission is received. The portfolio has a development potential of ~6 500 residential units. ~6 500 homes completed since 2012…

6,377 6,466

5,601

4,747

4,057

3,221

2,393

1,470

792

2012 2013 2014 2015 2016 2017 2018 2019 YTD 2020

Note: Completed 50 000 units from 1948 to 2011

11 …for a total value of NOK > 24 billion

24.1 24.3

20.8

17.4

14.2

11.2

8.0

5.0 2.8

2012 2013 2014 2015 2016 2017 2018 2019 YTD 2020

12 Project margin development

NOK million

3 637 3 479 3 480 3 254 3 239 3 277 3 195 3 142 3 194 3 179 3 204 3 038 2 931 2 929 2 683 2 586 2 377

30% 29% 28% 28% 28% 29% 28% 26% 26% 26% 26% 27% 26% 24% 22% 19% 20%

Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 12 months rolling revenues (NGAAP)* 12 months rolling project margin**

* Construction costs are exclusive of financial expenses in the segment reporting (NGAAP) ** Project margins are exclusive of overhead costs

13 Dividend policy

Selvaag Bolig’s ambition is to pay high and stable dividends to its owners.

The company aims to pay dividends of minimum 40 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 forecasts and capital adequacy.

The company will maintain an equity ratio of minimum 30 per cent

14 Share performance and dividend since IPO

Share performance since IPO in June 2012 Accumulated dividend and earnings per share NOK

80 Earnings per share 37.80 Dividend per share

70 31.14

60 24.10

50 17.96 15.80 40 13.61 12.30 10.40 30 7.40 7.80 4.70 4.80 20 2.95 3.20 1.70 0.50 10 H2 2012 2013 2014 2015 2016 2017 2018 2019 2020*

Source: Oslo Børs * EO dividend of NOK 22 per share paid on 31 January 2020

15 Return on equity (IFRS)

12 months rolling net income (IFRS)* and return on equity**

NOK million 2,000 90% 1799*** 1,800 80%

1,600 70% 1,400 60% 1,200 58% 50% 1,000 40% 800 739 655 567 613 30% 600 520 397 354 401 356 366 27% 20% 400 301 335 326 261 265 253 20% 22% 21% 18% 10% 200 13% 15% 14% 15% 13% 14% 10% 11% 10% 12% 12% 0 0% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Net income Return on equity

* Net income attributable to shareholders in Selvaag Bolig ASA ** Based on equity at the start of the period (attributed to shareholders in Selvaag Bolig ASA) *** Q1 2020 12 months rolling net income including other gains of NOK 1 208.7 million 16 Strategic priorities and outlook

Strategy Targets

· Maintain position as a leading residential developer in Norway Competitive housing offering, · Long-term growth does not affect profitability or financial risk targeting growth regions · Continue developing industrial approach to homebuilding

Large, actively-managed land bank, · Land acquisitions throughout the economic cycle owned by partner Urban Property · Focus on Greater Oslo, Stavanger, Bergen, Trondheim, and Stockholm

· Ensure economies of scale through large projects, typically >300 units in Oslo Efficient and flexible and >150 units in other regions cost structure · Project margin of minimum 12%

· High and stable dividends. Minimum 40% of net annual profit, paid in two instalments over the Capital-efficient business model year* backed by strong balance sheet · The company will maintain an equity ratio of minimum 30 per cent

* The size of the dividend will be weighed against the company’s liquidity forecasts and capital adequacy