Selvaag Bolig Asa

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PROSPECTUS NOT FOR GENERAL DISTRIBUTION IN THE UNITED STATES

SELVAAG BOLIG ASA

NOK 500 million to NOK 800 million initial public offering Indicative Price Range from NOK 25 to NOK 32 per Offer Share Listing of the Company’s Shares on Oslo Børs

This prospectus (the “Prospectus”) has been prepared in connection with the initial public offering of new ordinary shares, each with a par value of NOK 2.00 (the “Offer Shares” and, together with any Additional Shares (as defined below) and the existing shares issued by the Company, the “Shares”), in Selvaag Bolig ASA (the “Company” or “Selvaag Bolig”) and the listing of the Shares on Oslo Børs (“Oslo Børs”). The global offering (the “Offering”) in an amount of NOK 500 million to NOK 800 million, with an over-allotment option of an additional 10%, through the issuance of up to 34,093,398 Offer Shares (including any Shares issued pursuant to the Greenshoe Option, as defined in Section 5.10) comprises (i) an institutional offering (a) to investors in Norway, (b) to investors outside Norway and the United States subject to applicable exemptions from local prospectus and other filing requirements, and (c) in the United States, to “qualified institutional buyers” “QIBs”( ) as defined in, and in reliance on, Rule 144A “Rule( 144A”) under the United States Securities Act of 1933, as amended (the “Securities Act”); subject to a lower limit per application of NOK 1,000,000 (the “Institutional Offering”), (ii) a retail offering to the public in Norway subject to a lower limit per application of NOK 10,500 and an upper limit per application of NOK 999,999 for each investor (the “Retail Offering”), and (iii) an employee offering, in which the Company’s Eligible Employees, as defined in Section 5.7.1, are offered to apply for Offer Shares subject to a lower limit per application of NOK 10,500 and an upper limit per application of NOK 100,000 for each Eligible Employee, and with a discount of 20% of the final offer price per Offer Share (the “Offer Price”) (the “Employee Offering”). Except where the context otherwise requires, references in this Prospectus to “Shares” will be deemed to include the “Offer Shares” and any “Additional Shares” (as defined in Section 5.4). All offers and sales outside the United States will be made in reliance on Regulation S (“Regulation S”) under the Securities Act. The offer period for the Institutional Offering (the “Book-building Period”) is expected to last from 09:00 hours (Central European Time, “CET”) on 23 May 2012 to 17:30 hours (CET) on 7 June 2012. The application period for the Retail Offering and the Employee Offering (the “Application Period”) is expected to last from 09:00 hours (CET) on 23 May 2012 to 12:00 hours (CET) on 7 June 2012. The Book-building Period and/or the Application Period may, at the Company’s own discretion, and for any reason, be closed prior to, or extended beyond, said times but will close no earlier than 12:00 hours (CET) on 30 May 2012 and no later than 17:30 hours (CET) on 28 June 2012. The Shares, the Offer Shares and the Additional Shares have not been, and will not be, registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States, and may not be offered or sold within the United States except to QIBs in reliance on the exemption from the registration requirements of the Securities Act provided by Rule 144A, or outside the United States in compliance with Regulation S. For a description of certain restrictions on offering, subscription, sale, purchase and transfer of the Shares, see Section 17 “Selling and transfer restrictions”. This is an initial public offering; prior to the Offering there has been no public trading market for the Shares and the Shares are not listed nor traded on any stock exchange or regulated market. The Company submitted an application for listing (the “Listing Application”) of the Shares on Oslo Børs (the “Listing”) on 23 April 2012. The Listing Application is expected to be considered by the board of directors of Oslo Børs on 23 May 2012. Completion of the Offering is inter alia conditional upon Oslo Børs approving the Listing Application. Investing in the Shares involves a high degree of risk. See Section 3 “Risk Factors” beginning on page 28.

Joint Lead Managers

22 May 2012 Important information Please see Section 19 “Definitions and glossary of terms”, which also applies to the front page, for the definition of certain terms used throughout this Prospectus. All references to the “Group” or the “Selvaag Bolig Group” in this Prospectus refer to the Company together with its subsidiaries; see Section 6 “Presentation of the Company”. All references to the “Selvaag Group” in this Prospectus refer to the Company’s main shareholder Selvaag Gruppen AS together with its subsidiaries. Prospective investors are expressly advised that an investment in the Shares entails financial and legal risks and that they should therefore read this Prospectus in its entirety, including but not limited to the section of the Prospectus entitled “Risk Factors”, when considering an investment in the Shares. The contents of this Prospectus are not to be construed as legal, financial or tax advice. Each prospective investor should consult his, her or its own legal adviser, independent financial adviser or tax adviser for legal, financial or tax advice. In making an investment decision, each investor must rely on its own examination, and analysis of, and enquiry into, the Group and the terms of the Offering, including but not limited to the merits and risks involved. Each investor should contact the Managers or the Company with any questions about the Offering or if the investor requires additional information to verify the information contained in this Prospectus. The investor acknowledges that: (1) the investor has been afforded an opportunity to request from the Managers or the Company, and to review, and have received, all additional information considered by the investor to be necessary to verify the accuracy of, or to supplement, the information contained in this Prospectus; (2) the investor has not relied on the Managers or any person affiliated with the Managers in connection with the investor’s investigation of the accuracy of such information or the investor’s investment decision; and (3) no other person has been authorized to give any information or to make any representation concerning the Company or its affiliates or the Shares (other than as contained in this Prospectus) and, if given or made, any such other information or representation should not be relied upon as having been authorized by the Company or the Managers. None of the Company or the Managers, or any of their respective representatives or advisers, is making any representation to any offeree, applicant or subscriber of Offer Shares regarding the legality of an investment in the Offer Shares by such offeree, applicant or subscriber under the laws applicable to such offeree, applicant or subscriber. This Prospectus, dated 22 May 2012, has been prepared by Selvaag Bolig ASA in order to provide a presentation of the Company in connection with the Offering and the Listing, as defined and described herein. The Prospectus has been prepared to comply with the Norwegian Securities Trading Act Sections 7-2 and 7-3 and related legislation and regulations, including the Commission Regulation (EC) No. 809/2004 of 29 April 2004 implementing Directive 2003/71/EC of the European Parliament and of the Council. The Prospectus has been prepared in the English language with a summary in English and Norwegian. The Prospectus has been approved by the Norwegian Financial Supervisory Authority (the “FSAN”) (Norwegian: Finanstilsynet) pursuant to Sections 7-7 and 7-8 of the Norwegian Securities Trading Act. The information contained herein is as of the date hereof and subject to change, completion and amendment without notice. In accordance with Section 7-15 of the Norwegian Securities Trading Act, any new circumstance, material error or inaccuracy relating to information included in the Prospectus, which may be of significance for the assessment of the Shares, and which arises between approval of the Prospectus and the expiry of the Offer Period or the Listing, will be presented in a supplement to the Prospectus. Such supplement shall be approved by the FSAN and be published. Publication of this Prospectus shall not create any implication that there has been no change in the Group’s affairs or that the information herein is correct as of any date subsequent to the date of the Prospectus. The Company has engaged ABG Sundal Collier Norge ASA (“ABGSC”), DNB Markets, a part of DNB Bank ASA (“DNB Markets”) and Pareto Securities AS (“Pareto Securities”) (together, the “Managers”) as joint lead managers for the Offering and the Listing. DNB Markets and ABGSC are also engaged as joint bookrunners. ABGSC, DNB Markets and Pareto Securities will jointly recommend the allocation of Offer Shares in the issue. All inquiries relating to this Prospectus must be directed to the Company or the Managers. No other person is authorised to give information, or to make any representation, in connection with the Offering or sale of the Offer Shares or the Additional Shares, the Listing or this Prospectus. If any such information is given or made, it must not be relied upon as having been authorised by the Company or the Managers or by any of their affiliates, advisors or selling agents. The Company has furnished the information in this Prospectus. The Managers make no representation or warranty, express or implied, as to the accuracy or completeness of such information, and nothing contained in this Prospectus is, or shall be relied upon as, a promise or representation by the Managers. The Managers disclaim all and any liability, to the extent permissible by applicable law, whether arising in tort or contract or otherwise, which they might otherwise have in respect of this Prospectus or any such statement. If the conditions for the completion of the Offering (as described herein) are not satisfied, the Offering will be cancelled, all orders/applications for Offer Shares and any Additional Shares will be disregarded, any allocations made will be deemed to not to have been made and any payments made by investors will be returned without interest. No financial claim or claim for compensation can be made against the Company and/or the Managers if the Offering is not completed. In the ordinary course of their respective businesses, the Managers and certain of their affiliates have engaged, are engaged and may continue to engage, in investment and commercial banking transactions with the Company. No action has been, or will be, taken in any jurisdiction other than Norway by the Managers or the Company that would permit an offering of the Offer Shares and any Additional Shares, or the possession or distribution of any documents relating thereto, or any amendment or supplement thereto, in any country or jurisdiction where specific action for such purpose is required. Accordingly, this Prospectus may not be used for the purpose of, and does not constitute, an offer to sell or issue, or a solicitation of an offer to buy or apply for, any securities in any jurisdiction in any circumstances in which such offer or solicitation is not lawful or authorised. Persons into whose possession this Prospectus may come are required by the Company and the Managers to inform themselves about and to observe such restrictions. Neither the Company nor the Managers shall be responsible or liable for any violation of such restrictions by prospective investors. NOTICE TO PROSPECTIVE INVESTORS IN THE UNITED STATES, THE EEA AND CERTAIN OTHER JURISDICTIONS The Shares, Offer Shares and any Additional Shares have not been, and will not be, registered under the Securities Act, or with any securities authority of any state of the United States. The Offer Shares and any Additional Shares will be offered and sold in offshore transactions outside the United States to non-U.S. persons as defined by, and in reliance on, Regulation S and in the United States to QIBs in reliance on the exemption from registration provided by Rule 144A or in another transaction exempt from the registration requirements under the Securities Act. Prospective purchasers are hereby notified that sellers of the Offer Shares and any Additional Shares may be relying on an exemption from the provisions of Section 5 of the Securities Act. Accordingly, the Offer Shares and any Additional Shares issued may not be offered, pledged, sold, resold, granted, delivered, allotted, taken up, or otherwise transferred, as applicable, in the United States, except in transactions that are exempt from, or in transactions not subject to, registration under the Securities Act and in compliance with any applicable state securities laws. For a description of certain restrictions on the offering, subscription, sale, purchase and transfer of the Offer Shares and any Additional Shares, see Section 17 “Selling and Transfer Restrictions”. Further, the Offer Shares and the Additional Shares (if any) may not be offered, sold, resold, transferred or delivered, directly or indirectly, in or into inter alia the United Kingdom, Canada, Japan or Australia or otherwise in contravention of legislation in the European Economic Area (“EEA”) or in any other jurisdiction where such offer, sale, resale, transfer or delivery would be unlawful or inappropriate in accordance with the selling restrictions described in Section 17, “Selling and Transfer Restrictions”. Available Information The Company is not required to file periodic reports under Section 13 or 15 of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”). For as long as any of the Shares are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, and the Company is neither subject to Section 13 or 15(d) of the Exchange Act, nor exempt from reporting pursuant to Rule 12g3-2(b) under the Exchange Act, the Company will upon written request furnish to any holder or beneficial owner of Shares, or to any prospective purchaser designated by such registered holder, the information specified in, and meeting the requirements of, Rule 144A(d)(4) under the Securities Act.

TABLE OF CONTENTS

1. SAMMENDRAG ...... 5

2. SUMMARY ...... 16

3. RISK FACTORS ...... 27

4. RESPONSIBILITY FOR THE PROSPECTUS ...... 36

5. THE LISTING AND THE OFFERING ...... 37

6. PRESENTATION OF THE COMPANY ...... 52

7. MARKET OVERVIEW ...... 72

8. BOARD OF DIRECTORS, MANAGEMENT, EMPLOYEES AND CORPORATE GOVERNANCE ...... 88

9. UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION ...... 102

10. OPERATING AND FINANCIAL INFORMATION ...... 107

11. OPERATING AND FINANCIAL REVIEW ...... 113

12. CAPITAL RESOURCES AND INDEBTEDNESS ...... 118

13. SHARES AND SHARE CAPITAL ...... 128

14. SECURITIES TRADING IN NORWAY ...... 135

15. NORWEGIAN TAXATION ...... 138

16. LEGAL MATTERS ...... 141

17. SELLING AND TRANSFER RESTRICTIONS ...... 143

18. ADDITIONAL INFORMATION ...... 147

19. DEFINITIONS AND GLOSSARY OF TERMS ...... 148

3 APPENDICES

APPENDIX 1: ARTICLES OF ASSOCIATION FOR SELVAAG BOLIG ASA...... A 1

APPENDIX 2: CONSOLIDATED FINANCIAL STATEMENTS SELVAAG BOLIG Q1 2012 WITH COMPARATIVE FIGURES Q1 2011 (IFRS)...... A 3

APPENDIX 3: CONSOLIDATED FINANCIAL STATEMENTS SELVAAG BOLIG 2011 WITH COMPARATIVE FIGURES 2010 (IFRS), AND FINANCIAL STATEMENTS SELVAAG BOLIG ASA 2011 (NGAAP)...... A 12

APPENDIX 4: CONSOLIDATED FINANCIAL STATEMENTS SELVAAG BOLIG 2010 WITH COMPARATIVE FIGURES 2009 AND 2008 (IFRS)...... A 54

APPENDIX 5: FINANCIAL STATEMENTS SELVAAG BOLIG AS 2010 (NGAAP)...... A 76

APPENDIX 6: FINANCIAL STATEMENTS SELVAAG BOLIG AS 2009 (NGAAP)...... A 86

APPENDIX 7: CONSOLIDATED FINANCIAL STATEMENTS HANSA PROPERTY GROUP 2010 WITH COMPARATIVE FIGURES 2009 (IFRS)...... A 96

APPENDIX 8: FINANCIAL STATEMENTS SELVAAG PLUSS EIENDOM KS 2011 WITH COMPARATIVE FIGURES 2010 (NGAAP)...... A 129

APPENDIX 9: CONSOLIDATED FINANCIAL STATEMENTS SELVAAG PLUSS EIENDOM 2010 WITH COMPARATIVE FIGURES 2009 (NGAAP)...... A 135

APPENDIX 10: FINANCIAL STATEMENTS SELVAAG BOLIG ROGALAND AS 2011 WITH COMPARATIVE FIGURES 2010 (NGAAP)...... A 143

APPENDIX 11: FINANCIAL STATEMENTS SELVAAG BOLIG ROGALAND AS (FORMERLY BO EN AS) 2010 WITH COMPARATIVE FIGURES 2009 (NGAAP)...... A 150

APPENDIX 12: AUDITOR’S REPORT ON UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION...... A 156

APPENDIX 13: APPLICATION FORM FOR THE RETAIL OFFERING (NORWEGIAN)...... A 157

APPENDIX 14: APPLICATION FORM FOR THE RETAIL OFFERING (ENGLISH)...... A 159

APPENDIX 15: APPLICATION FORM FOR THE EMPLOYEE OFFERING (NORWEGIAN)...... A 161

APPENDIX 16: APPLICATION FORM FOR THE EMPLOYEE OFFERING (ENGLISH)...... A 163

1. SAMMENDRAG This section is an unofficial office translation of Section 2 “Summary” incorporated in this Prospectus. In the event there are any discrepancies between the contents of this Norwegian text and the original English text, the English text will take precedence.

Dette Prospektet med vedlegg er utelukkende utarbeidet på engelsk. Dette kapittel ”Sammendrag” er en uoffisiell oversettelse av kapittel 2 ”Summary” i Prospektet. Ved motstrid mellom innholdet i den engelske teksten og denne norske oversettelsen går den engelske versjonen foran.

Det følgende sammendraget bør leses som en innledning til Prospektet, og er i sin helhet underordnet de mer detaljerte opplysningene og vedleggene som er inntatt andre steder i dette Prospektet. Enhver beslutning om å investere i aksjene i Selskapet (”Aksjene”) må baseres på en vurdering av hele Prospektet.

Dersom et krav relatert til informasjonen i Prospektet blir fremlagt for en domstol, kan det være tilfellet at saksøkeren må betale kostnadene for oversettelse av Prospektet før en eventuell rettegang blir igangsatt. De personene som har skrevet sammendraget inkludert en oversettelse av sammendraget, har et sivilrettslig ansvar, men kun dersom sammendraget er villedende, unøyaktig eller ufullstendig når det leses i sammenheng med de andre delene av Prospektet.

1.1 BESKRIVELSE AV SELVAAG BOLIG ASA 1.1.1 Introduksjon Selvaag Bolig ASA (“Selskapet” eller “Selvaag Bolig”) er et allmennaksjeselskap stiftet 11. april 2008 som et aksjeselskap og har senere blitt konvertert til et allmennaksjeselskap under allmennaksjeselskapsloven, og er registrert i Foretaksregisteret med organisasjonsnummer 992 587 776. Selskapets har sitt hovedkontor i Lørenvangen 22, 0580 Oslo. Selskapets postadresse er postboks 544 Økern, 0512 Oslo og Selskapets telefonnummer er +47 02224. Selskapets hjemmesideadresse er www.selvaagbolig.no og e-postadresse [email protected].

Selskapet er morselskapet i Selvaag Bolig konsernet, som nærmere beskrevet under kapittel 6.2. Konsernets virksomhet drives gjennom datterselskaper. Konsernet har per datoen for dette Prospektet omlag 87 ansatte, hvorav 42 er ansatt i Selskapet og 45 er ansatt i datterselskapene.

1.1.2 Historie Historien til Selvaag Bolig kan oppsummeres som følger:

1936 - Olav Selvaag startet sin karriere som byggingeniør hos Fr. Ringnes Entreprenør. 1945 - Fr. Ringnes Entreprenør ble omdøpt til Ringnes & Selvaag, Olav Selvaag nå medeier. 1948 - ”Ekeberghuset” ble bygget, og representerte en ny og revolusjonerende måte å bygge boliger på. 1952 - Totalentreprise – bygging av småhus i rekke med ny byggemetode og blokk med utvendig spiraltrapp. Masseproduksjon av små boliger og blokkleiligheter på Bestum i Oslo. 1953 - Innen 1953 hadde Olav Selvaag blitt eneeier av Ringnes & Selvaag, og selskapet ble omdømt til A/S Selvaagbygg. 1957 - Ferdigstillelse av mer enn 1500 boligenheter på Veitvedt, nord for Oslo sentrum. 1976 - Selskapet ferdigstilte byggingen av mer enn 4000 terrasseleiligheter på Vestli, nord for Oslo sentrum. Starten på en ledende rolle i boligbygging i Oslo-regionen. Moss sykehus bygget med industriell kompetanse. 1980 - Forslag om overbygging av Majorstua stasjon. 1986 - Forslag om vannlinje for å frigjøre sjønære områder for bolig- og byutvikling. 1999 - Selvaag startet å bygge modulbaserte boliger. Selvaag ervervet Løren leir og tilstøtende tomter, nord for Oslo sentrum. 2002 - Selvaag vant anbudet for utvikling av Tjuvholmen i Oslo sentrum.

2004 - De første Plussbolig leilighetene kom på markedet. 2008 - Boligutviklingsvirksomheten ble separert og overført til et nytt datterselskap, Selvaag Bolig. 2010 - Selvaag Bolig entret det svenske eiendomsmarkedet gjennom en joint venture med Veidekke Bostad AB. 2011 - Selvaag Bolig fusjonerte i august med Hansa Property Group AS og gjennomførte en rettet emisjon mot eierne i Selvaag Pluss Eiendom KS. Selvaag Bolig ble omdannet til et allmennaksjeselskap i september. Etter fusjonen ble Selvaag Bolig eier av 62,5 % av aksjene i Bo En AS, et boligutviklingsselskap i Stavangerregionen. I november 2011 kjøpte Selvaag Bolig de resterende 37,5 % av aksjene i Bo En AS, som nå er et heleid datterselskap av Selvaag Bolig under det nye navnet Selvaag Bolig Rogaland AS.

1.1.3 Virksomhetsbeskrivelse Etter vedtektenes § 3 er Selskapets vedtektsbestemte formål:

”å erverve og utvikle boligprosjekter med sikte på salg, kjøp og salg av eiendom, samt annen tilknyttet virksomhet, herunder næringseiendom. Selskapet kan delta i andre selskaper i inn- og utland i tilknytning til boligutvikling.”

Selvaag Bolig er en boligutvikler i Norge og over tid i utvalgte byer i Skandinavia, med tre støttevirksomheter; i) eiendomsmegling, utleie og oppgjør gjennom virksomheten Meglerhuset Selvaag, ii) modulhus gjennom Selvaag Bolig Modulbygg AS, og iii) tjenestetilbud i forbindelse med Plussbolig konseptet gjennom Selvaag Pluss Service AS. Selskapets boligutviklingsvirksomhet består av både heleide og deleide boligutviklingsprosjekter, hvor noen er i joint venture med eksterne investorer.

1.2 FORMÅLET OG BAKRGUNNEN FOR NOTERINGEN OG TILBUDET Den planlagte notering av Aksjene på Oslo Børs er et viktig skritt i å legge til rette for likviditet i Aksjene og dermed gjøre Aksjene til en mer attraktiv investering både for eksisterende og nye aksjonærer. Børsnoteringen vil også forbedre Selskapets tilgang til egenkapitalmarkeder, som i tillegg til ytterligere å styrke Selskapets tilgang til bankfinansiering og finansiering i obligasjonsmarkedet, også vil støtte Selskapets vekststrategi. Etter noteringen vil aksjer utstedt av Selskapet også kunne brukes som vederlag i forbindelse med fremtidige investeringer.

Emisjonsprovenyet fra Tilbudet er planlagt benyttet til full eller delvis tilbakebetaling av Selskapets ”bridge-to- equity” lån på NOK 500 millioner fra DNB Bank ASA (minimum NOK 250 millioner) (som nærmere beskrevet i punkt 12.5 “Borrowings”), tilbakebetaling av Selskapets lån fra Selvaag Gruppen AS på NOK 165 millioner (men slik at Selvaag Gruppen AS først skal tegne seg for et tilsvarende beløp i Tilbudet) (som nærmere beskrevet i punkt 12.5 “Borrowings”), samt betaling av kostnader forbundet med Tilbudet. I emisjonsprovenyet inngår også oppgjør av NOK 40 millioner, som skal gjøres opp ved utstedelse av aksjer i Selskapet, av selgerkreditten på NOK 50 millioner fra Svithun Finans AS (som nærmere beskrevet i punkt 5.1”Reasons for the stock exchange listing and the offering” og punkt 6.1.6 “Acquisition of remaining part of Bo En AS (Selvaag Bolig Rogaland AS)”). Dersom Selskapet mottar mer enn NOK 500 millioner i brutto proveny fra Tilbudet, skal det overskytende beløp benyttes til ytterligere nedbetaling av ”bridge-to-equity” lånet inntil dette er fullt tilbakebetalt. Eventuell ytterligere innhentet kapital vil bli benyttet til å finansiere Selskapets videre vekst innenfor Selskapets strategi, som beskrevet i kapittel 6.4 ”Selskapets strategi, konsept og målsettinger”, herunder å støtte Selskapets strategi om å styrke sin posisjon som en av de ledende boligutviklere i Norge, og over tid i utvalgte byer i Skandinavia. Selvaag Bolig har gjennom fusjonen med Hansa Property Group AS, den rettede emisjonen mot eierne av Selvaag Pluss Eiendom KS og ervervet av den resterende del av Bo En AS (navn endret til Selvaag Bolig Rogaland AS), allerede sikret seg en betydelig eiendomsportefølje, delvis finansiert gjennom ”bridge-to-equity” lånet nevnt over.

Selvaag Gruppen AS og Svithun Finans AS har forhåndsbestilt Tilbudsaksjer til Tilbudsprisen for henholdsvis NOK 165 millioner og NOK 40 millioner. I tillegg har Selvaag Gruppen AS forhåndsbestilt Tilbudsaksjer til Tilbudsprisen for ytterligere NOK 10 millioner.

1.3 NOTERINGEN Selskapets aksjer er per i dag ikke notert på Oslo Børs eller noen annen regulert markedsplass. Selskapet har den 23. april 2012 søkt om notering av Aksjene på Oslo Børs. Det forventes at styret i Oslo Børs vil behandle søknaden den 23. mai 2012. Forutsatt at styret i Oslo Børs den 23. mai 2012 godkjenner søknaden om notering av Selskapets aksjer og Tilbudet gjennomføres, forventes det at første dag for handel av Selskapets aksjer, inkludert Tilbudsaksjene, på Oslo Børs vil være på eller rundt den 14. juni 2012. Aksjene forventes å handles under ticker ”SBO”.

Det er imidlertid ingen garanti for at Oslo Børs vil godkjenne noteringssøknaden, eller at noteringen av aksjene vil skje.

1.4 OPPSUMMERING AV RISIKOFAKTORER Det er flere risikofaktorer som vil kunne påvirke Selskapet og Konsernet. Nedenfor følger en oversikt over de mest relevante risikofaktorene, som er ytterligere utdypet i kapittel 3. Risikofaktorene nedenfor er risikofaktorer som angår Selskapet og Konsernet, Selskapets industri og Aksjene, som av Selskapet bedømmes å være substansielle og som Selskapet er klar over per datoen for dette Prospektet. Dersom noen av risikofaktorene beskrevet nedenfor materialiserer seg, individuelt eller sammen med andre omstendigheter, kan Konsernets virksomhet, finansielle posisjon, kontantstrøm, driftsresultat og/eller fremtidsutsikter påvirkes negativt i vesentlig grad, noe som kan medføre en nedgang i verdien og handelsprisen på Aksjene, og som kan føre til tap av hele eller deler av en investering i Aksjene.

Risikofaktorer knyttet til Selskapet og industrien Selskapet opererer i:

 Konsernet er avhengig av etterspørselen etter boligeiendommene som utvikles, og tjenestene som tilbys, av Konsernet, særlig i Norge, men også i de øvrige geografiske områder Konsernet opererer i  Verdien av Konsernets eiendeler er utsatt for makroøkonomiske svingninger  Konsernet er ikke nødvendigvis i stand til vellykket å gjennomføre sin strategi  Konsernet står overfor utviklingsrisiko i sin virksomhet med utvikling og salg av boligeiendommer  Konsernet er avhengig av bruk av underleverandører  Selskapet er avhengig av å tiltrekke og beholde kvalifisert personell  Konsernets forsikringsdekning kan vise seg å være utilstrekkelig  Konkurranse innen industrien kan påvirke Konsernet negativt  Konsernet er utsatt for miljørisiko knyttet til eiendom  Konsernet er eksponert for risiko for å ikke være i stand til å betale fremtidig utbytte eller å betjene gjeld  Risiko knyttet til transaksjoner med nærstående og atskillelse fra Selvaag Gruppen konsernet  Risiko knyttet til fusjonen med Hansa Property Group AS og innlemmelsen av Selvaag Pluss Eiendom KS og Bo En AS (nå Selvaag Bolig Rogaland AS) i Konsernet  Konsernet har begrenset operasjonell historie som en separat enhet og investorer vil kunne ha vanskeligheter med å vurdere Selskapets historiske økonomiske resultat og utsikter til fremtidig økonomiske resultat og driftsresultater  Konsernet er utsatt for risiko knyttet til bruken av ”Selvaag”-navnet  Konsernet står overfor risiko knyttet til fremtidig vekst  Endringer i reguleringsplaner og eksisterende unntakspraksis av myndighetene kan påvirke Konsernets virksomhet vesentlig, og endringer i infrastruktur kan påvirke etterspørselen for Selskapets boligeiendommer vesentlig  Lover og forskrifter kan hindre eller forsinke Konsernets virksomhet, øke Konsernets virksomhetskostnader og redusere etterspørselen for Konsernets tjenester og/eller begrense Konsernets evne til å drifte Konsernets eiendommer eller lignende  Konsernet står overfor risiko knyttet til hjemmel og eierskap til sine eiendommer

Finansielle risikofaktorer:

 Konsernet er avhengig av sin foreliggende finansiering, fornyelse av denne og/eller å oppnå ny finansiering for å finansiere driften og fremtidige investeringer  Konsernet er eksponert for lånemarkedet for kjøpere av boligeiendommer  Konsernet kan få behov for ytterligere kapital for å gjennomføre Konsernets vekststrategi

 Konsernet er utsatt for rentenivårisiko og valutarisiko  Konsernet er utsatt for risiko for endring av lover eller forskrifter som omhandler skatt og andre avgifter  Konsernet er eksponert for kredittrisiko

Risikofaktorer relatert til Aksjene:

 Risiko for at noteringssøknaden ikke blir godkjent av Oslo Børs og at Tilbudet derfor ikke gjennomføres  Aksjenes markedspris kan vise seg volatil  Aksjene kan vise seg gjenstand for begrenset likviditet, og det kan vise seg at man ikke får solgt Aksjene til eller over Tilbudsprisen  Aksjeeiere som ikke deltar i fremtidige tilbud om aksjer eller andre egenkapitalinstrumenter kan bli utvannet  Investorer er ikke garantert å være i stand til å utøve sine stemmerettigheter for Aksjer registrert på en forvalterkonto  Selskapet vil ha én hovedaksjonær ved ferdigstillelse av Tilbudet  Salg av aksjer fra Selskapets primærinnsidere eller andre store aksjonærer kan presse ned prisen på aksjene  Aksjene er gjenstand for visse omsetningsbegrensninger  Aksjeeiere utenfor Norge er gjenstand for valutarisiko

Andre risikofaktorer:

 Muligheten for aksjeeiere til å gjøre gjeldende krav mot Selskapet i deres egenskap av å være aksjeeiere etter registrering av kapitalforhøyelsen i Foretaksregisteret er svært begrenset etter norsk rett  Muligheten til å anlegge sak mot Selskapet kan være begrenset etter norsk rett  Konsernet kan bli gjenstand for rettssaker som kan ha en ugunstig effekt på Konsernet

1.5 STYRET, LEDELSEN OG ANSATTE 1.5.1 Styret Selskapets styre består av åtte medlemmer: Olav Hindahl Selvaag (Styrets leder), Karsten Bomann Jonsen (styremedlem), Anne Breive (styremedlem), Wenche Kjølås (styremedlem), Ole Jarl Rettedal (styremedlem), Gisele Marchand (styremedlem), Christopher Brunvoll (styremedlem, ansatterepresentant) og Anne-Kari Drønen Mathiesen (styremedlem, ansatterepresentant).

1.5.2 Ledelsen Konsernets ledelse består av følgende personer:

 Baard Schumann (født 1970), Administrerende direktør

 Haavard Rønning (født 1973), Finansdirektør

 Petter Cedell (født 1964), Direktør for eiendomsinvesteringer

 Anne-Grethe Storaker (født 1954), Salgs- og markedsdirektør

 Halvard Kverne (født 1962), Porteføljedirektør

 Sverre Molvik (født 1971), Porteføljedirektør

1.5.3 Ansatte Per datoen for dette Prospektet har Selvaag Bolig ASA og dets datterselskaper 87 ansatte, hvorav 42 er ansatt i Selskapet og 45 er ansatt i datterselskapene. For ytterligere informasjon, vennligst se kapittel 8.3.

1.6 RÅDGIVERE OG REVISOR 1.6.1 Tilretteleggere Tilretteleggerne for Tilbudet og Noteringen er ABG Sundal Collier Norge ASA, Munkedamsveien 45 E, Postboks 1444 Vika, N-0115 Oslo, DNB Markets, en avdeling av DNB Bank ASA, Stranden 21, Aker Brygge, N-0021 Oslo og Pareto Securities, Dronning Mauds gt. 3, Postboks 1411 Vika, N-0115 Oslo.

1.6.2 Uavhengig revisor Selskapets uavhengige revisor er PricewaterhouseCoopers AS (”PwC”), Dronning Eufemias gate 8, Postboks 748, 0106 Sentrum, med organisasjonsnummer 987 009 713. For mer informasjon, vennligst se kapittel 10.7.

1.7 OPPSUMMERING AV OPERASJONELL OG FINANSIELL INFORMASJON Sammendraget av den finansielle informasjonen i dette Prospektet bør leses i sammenheng med Konsernregnskapene og noter til regnskapene i vedlegg 2 og 3 i tillegg til kapittel 10 og 11 i dette Prospektet.

1.7.1 Sammendrag av konsolidert resultatregnskapsoppstilling

Tre måneder avsluttet År avsluttet IFRS IFRS IFRS IFRS IFRS Konsolidert resultatregnskap 31. mars 2012 31. mars 2011 31. desember 31. desember 31. desember NOK ’000 (urevidert) (urevidert) 2011 (revidert) 2010 (revidert) 2009 (revidert)

Sum driftsinntekter 191 971 41 198 309 822 379 130 354 046 Sum driftsutgifter (175 621) (47 011) (302 682) (358 404) (317 880) Driftsresultat (tap) 16 350 (5 813) 7 140 20 726 36 166 Netto finanspost (16 546) (572) (36 115) (23 256) (13 128) Resultat (tap) før skattekostnad (196) (6 385) (28 975) (2 530) 23 038 Resultat (tap) for perioden 5 884 (4 225) (5 710) (16 323) 2 470

Periodens totalresultat 5 881 (4 234) (5 706) (16 397) 3 976

1.7.2 Sammendrag av konsolidert balanseoppstilling

IFRS IFRS IFRS IFRS Konsolidert balanse 31. mars 2012 31. desember 2011 31. desember 2010 31. desember 2009 NOK ’000 (urevidert) (revidert) (revidert) (revidert)

EIENDELER Sum anleggsmidler 712 641 698 979 626 107 709 690 Sum omløpsmidler 5 031 995 4 725 759 456 063 599 461 SUM EIENDELER 5 744 636 5 424 738 1 082 170 1 309 151

EGENKAPITAL OG GJELD Sum egenkapital 1 316 540 1 310 659 322 042 225 276 Sum langsiktig gjeld 2 625 261 2 510 977 84 897 99 568 Sum kortsiktig gjeld 1 802 835 1 603 102 675 231 984 307 Sum gjeld 4 428 096 4 114 079 760 128 1 083 875 SUM EGENKAPITAL OG GJELD 5 744 636 5 424 738 1 082 170 1 309 151

1.7.3 Sammendrag av konsolidert kontantstrømoppstilling

Tre måneder avsluttet År avsluttet IFRS IFRS IFRS IFRS IFRS Konsolidert kontantstrømoppstilling 31. mars 2012 31. mars 2011 31. desember 31. desember 31. desember NOK ’000 (urevidert) (urevidert) 2011 (revidert) 2010 (revidert) 2009 (revidert)

Netto kontantstrøm fra operasjonelle aktiviteter (324 795) (10 911) (354 862) 28 580 69 042 Netto kontantstrøm fra investeringsaktiviteter (5 932) (43 297) 32 852 (21 900) 13 838 Netto kontantstrøm fra finansieringsaktiviteter 247 356 62 039 703 692 2 517 (86 421) Netto endring i kontanter og kontantekvivalenter (83 371) 7 831 381 682 9 197 (3 541) Kontanter og kontantekvivalenter ved periodens begynnelse 395 207 13 525 13 525 4 328 7 869 Kontanter og kontantekvivalenter ved periodens slutt 311 836 21 356 395 207 13 525 4 328

1.7.4 Vesentlige endringer i Selskapets økonomiske eller konkurranse stilling etter 31. mars 2012 Bortsett fra transaksjonene beskrevet i dette Prospektet har det ikke forekommet noen vesentlige endringer i Konsernets økonomiske eller konkurransemessige stilling etter 31. mars 2012.

1.7.5 Avhengighet av forskning og utvikling, patenter og lisenser Konsernet oppfatter at virksomheten i liten grad er avhengig av forskning og utvikling eller spesielle patenter eller lisenser.

1.7.6 Utviklingstrekk Selskapet har ikke erfart noen utviklingstrekk, usikkerheter, krav, forpliktelser eller hendelser som er sannsynlig å ville ha en vesentlig effekt på Selskapets utsikter for inneværende regnskapsår. Vennligst se kapittel 6, kapittel 7, kapittel 10 og kapittel 13 for generell informasjon om nyere utviklingstrekk i Selskapet og relevante markeder.

1.8 SAMMENDRAG AV EGENKAPITAL OG GJELD

Kapitalisering per NOK '000 31. mars 2012 31. desember 2011 Garantert lån -- Pantesikret lån 639 253 517 940 Usikret lån 1 163 582 1 085 162 Total kortsiktig gjeld A 1 802 835 1 603 102

Garantert lån -- Pantesikret lån 2 287 748 2 224 942 Usikret lån 337 513 286 035 Total langsiktig gjeld B 2 625 261 2 510 977

Aksjekapital 136 353 136 353 Fond/bundne reserver 1 661 748 1 661 751 Opptjent egenkapital (487 899) (493 906) Ikke-kontrollerende eierinteresser 6 338 6 461 Total egenkapital C 1 316 540 1 310 659 Gjeld og Egenkapital (A+B+C) 5 744 636 5 424 738

Belåning per NOK '000 31. mars 2012 31. desember 2011

Kontanter 311 836 395 207 Kontantekvivalenter - - Omsetningsverdipapirer - - Likvide midler D 311 836 395 207

Finansielle omløpsfordringer E 225 936 119 527

Kortsiktig gjeld til kredittinstitusjoner 484 000 556 867 Kortsiktig del av langsiktig gjeld 833 891 632,761 Annen kortsiktig finansiell gjeld 484 944 413 474 Kortsiktig rentebærende gjeld I 1 802 835 1 603 102

Netto rentebærende kortsiktig gjeld (I-E-D) J 1 265,063 1 088 368

Langsiktig gjeld til kredittinstitusjoner 2 495 393 2 376 300 Annen langsiktig gjeld 122 049 120 743 Eventualskatt 7 819 13 934 Langsiktig rentebærende gjeld N 2 625 261 2 434 667

Netto rentebærende gjeld (J+N) O 3 890 324 3 599 345

1.9 HOVEDAKSJONÆRER OG TRANSAKSJONER MED NÆRSTÅENDE PARTER 1.9.1 Hovedaksjonærer Per dato for dette Prospektet har Selskapet totalt 95 aksjeeiere. Selskapets 20 største aksjeeiere fremgår av tabellen nedenfor: Navn på aksjeeier Antall aksjer Prosent (%) Selvaag Gruppen AS 41 430 087 60,8 % Ferd Eiendomsinvest AS 3 604 856 5,3 % Havfonn AS 3 604 856 5,3 % Skips AS Tudor 3 235 517 4,7 % IKM Eiendom AS 3 075 624 4,5 % Storebrand Livsforsikring 2 741 388 4,0 % Svithun Finans AS 1 181 968 1,7 % T S Eiendom AS 1 181 968 1,7 % Toluma Invest AS 813 318 1,2 % Veidekke Eiendom AS 753 238 1,1 % Rotac AS 710 033 1,0 % Lema AS 534 501 0,8 % MP Pensjon PK 522 829 0,8 % SEB Enskilda ASA 383 225 0,6 % AS Wingana 353 359 0,5 % Hustadlitt A/S 351 449 0,5 % Megaron AS 340 924 0,5 % Jasto A/S 278 089 0,4 % Statoil Pensjon 261 960 0,4 % Leif Hübert Eiendom AS 254 507 0,4 % Sum 20 største aksjeeiere 65 613 696 96.2 % Andre aksjeeiere 2 573 100 3,8 % Totalt antall aksjer 68 186 796 100,0 %

Aksjonærer som eier mer enn fem prosent av aksjekapitalen i Selskapet per datoen for dette Prospektet fremgår av nr. 1 til nr. 3 i tabellen ovenfor.

1.9.2 Transaksjoner med nærstående Selskapet har inngått enkelte nærstående transaksjoner med sine datterselskaper og tilknyttede selskaper og med sin største aksjonær. Transaksjoner med datterselskaper elimineres ved konsolidering og fremgår ikke som nærstående transaksjoner i Konsernets finansielle rapportering. Se kapittel 8.6 nedenfor for detaljer vedrørende Selskapets transaksjoner med nærstående.

1.10 DETALJER OM TILBUDET OG NOTERINGEN 1.10.1 Oversikt Tilbudet ...... Tilbudet er et globalt tilbud for å innhente minimum NOK 500 millioner og maksimalt NOK 800 millioner, med mulighet for overtildeling på inntil ytterligere 10 % som beskrevet i punkt 5.10, gjennom utstedelse av inntil 34 093 398 nye Tilbudsaksjer (inkludert eventuelle Aksjer utstedt i henhold til Greenshoe- Opsjonen) gjennom et Institusjonelt Tilbud, et Tilbud til allmennheten og et Ansattetilbud. Tilbudet inkluderer også konvertering av NOK 40 millioner til aksjer av en selgerkreditt på NOK 50 millioner, ved motregning, som nærmere beskrevet i punkt 5.1 og 6.1.6. Styret har indikert at ca. 10 % av Tilbudsaksjene vil bli foreløpig reservert for allokering i Tilbudet til allmennheten og Ansattetilbudet og at ca. 90 % av Tilbudsaksjene vil bli foreløpig reservert for allokering i det Institusjonelle Tilbudet.

Det Institusjonelle Tilbudet ...... Det Institusjonelle Tilbudet, hvor Tilbudsaksjer vil bli tilbudt (a) til investorer i Norge, (b) til investorer utenfor Norge og USA, i henhold til gjeldende unntak fra lokale prospektkrav, og (c) i USA til QIBs som definert i, og i tråd med, Rule 144A i the Securities Act på visse betingelser, og med minimum bestillingsbeløp på NOK 1 000 000 per bestilling.

Tilbudet til allmennheten ...... Tilbudet til allmennheten, hvor Tilbudsaksjer vil bli tilbudt til allmennheten i Norge med et minimum bestillingsbeløp på NOK 10 500 og et maksimum bestillingsbeløp på NOK 999 999.

Ansattetilbudet ...... Ansattetilbudet, hvor Tilbudsaksjer vil bli tilbudt til kvalifiserte ansatte i Selskapet (som definert i kapittel 5.7.1), med et minimum bestillingsbeløp på NOK 10 500 og et maksimum bestillingsbeløp på NOK 100 000, og med en rabatt på 20 % av Tilbudsprisen. Dersom kvalifiserte ansatte ønsker å bestille ytterligere Tilbudsaksjer, må dette gjøres i Tilbudet til allmennheten.

Tilbudsprisen ...... Tilbudsprisen for Tilbudsaksjene vil bli fastsatt av Selskapets styre, i samråd med Tilretteleggerne, etter utløpet av book-building perioden basert på en book-building prosess. Selskapet har fastsatt et ikke-bindende indikativt prisintervall fra NOK 25 til NOK 32 per Tilbudsaksje.

Vilkår for å gjennomføre Tilbudet ...... Gjennomføringen av Tilbudet er betinget av at (i) Selskapets styre treffer vedtak om å gjennomføre Tilbudet, (ii) Oslo Børs godkjenner selskapets søknad om notering, og (iii) Selskapet, forutsatt at Tilbudet gjennomføres, oppfyller alle opptakskravene satt av Oslo Børs for notering på Oslo Børs.

Stemmeretter og restriksjoner ...... Hver aksje i Selskapet gir innehaveren rett til å avgi en stemme på Selskapets generalforsamlinger. Se kapittel 13.9.3.

Bruk av proveny ...... Provenyet fra Tilbudet er planlagt benyttet til full eller delvis tilbakebetaling av Selskapets ”bridge-to-equity” lån på NOK 500 millioner (minimum NOK 250 millioner) fra DNB Bank ASA, Selskapets lån fra Selvaag Gruppen AS på NOK 165 millioner, samt kostnader forbundet med Tilbudet. I provenyet inngår også oppgjør av NOK 40 millioner, som skal gjøres opp ved utstedelse av aksjer i Selskapet, av selgerkreditten på NOK 50 millioner fra Svithun Finans AS. Dersom Selskapet mottar mer enn NOK 500 millioner i brutto proveny fra Tilbudet, skal dette overskytende beløpet benyttes til ytterligere nedbetaling av ”bridge-to-equity” lånet inntil dette er fullt tilbakebetalt. Eventuelt ytterligere innhentet kapital vil bli benyttet til å finansiere Selskapets videre vekst innenfor Selskapets strategi, som beskrevet i kapittel 6.4, herunder å støtte Selskapets strategi om å styrke sin posisjon som en av de ledende boligutviklere i Norge, og over tid i utvalgte byer i Skandinavia. Selvaag Gruppen AS og Svithun Finans AS har forhåndsbestilt Tilbudsaksjer til Tilbudsprisen for henholdsvis NOK 165 millioner og NOK 40 millioner, som ytterligere beskrevet i punkt 5.1. I tillegg har Selvaag Gruppen AS forhåndsbestilt Tilbudsaksjer til Tilbudsprisen for ytterligere NOK 10 millioner.

Book-building Perioden i det Institusjonelle Tilbudet ...... Fra og med den 23. mai 2012 kl 09.00 til kl 17:30 den 7. juni 2012 (med forbehold om forkortelse eller forlengelse).

Bestillingsperioden i Tilbudet til allmennheten og Ansattetilbudet ...... Fra og med den 23. mai 2012 kl 09.00 til kl 12:00 den 7. juni 2012 (med forbehold om forkortelse eller forlengelse).

Allokering ...... Melding om allokering er forventet utstedt på eller rundt 8. juni 2012.

Betaling og levering ...... Det er forventet at betaling for aksjer i Tilbudet skal skje på eller rundt 13. juni 2012. Selskapet forventer å levere aksjene i det Institusjonelle Tilbudet gjennom levering av lånte aksjer mot betaling på eller rundt 13. juni 2012. Selskapet forventer å utstede og levere Tilbudsaksjene i Tilbudet til allmennheten og Ansattetilbudet på eller rundt 13. juni 2012.

Notering og start av handel ...... Selskapet har søkt om notering av Selskapets Aksjer på Oslo Børs. Styret ved Oslo Børs forventes å behandle noteringssøknaden på styremøtet som skal avholdes 23. mai 2012. Dersom noteringssøknaden godkjennes og Tilbudet gjennomføres, forventes handel i Aksjene (inkludert Tilbudsaksjene) å begynne på Oslo Børs på eller rundt 14. juni 2012.

Aksjekapital før Tilbudet ...... Selskapets registrerte aksjekapital før Tilbudet er NOK 136 373 592 bestående av 68 186 796 Aksjer hver med en pålydende verdi på NOK 2,00 fullt innbetalt og utstedt i henhold til norsk lov.

Aksjekapital etter Tilbudet ...... Selskapets registrerte aksjekapital vil som følge av Tilbudet øke med NOK 68 186 796 til NOK 204 560 388 fordelt på 102 280 194 Aksjer hver med en pålydende verdi på NOK 2,00 (under forutsetning av utstedelse av maksimalt antall Tilbudsaksjer) (34 093 398), inkludert eventuelle Aksjer utstedt i henhold til Greenshoe-Opsjonen).

Utvanning ...... Forutsatt utstedelse av maksimalt antall Tilbudsaksjer ((inkludert

eventuelle Aksjer utstedt i henhold til Greenshoe-Opsjonen) (34 093 398) vil Tilbudet resultere i en umiddelbar utvanning på ca 33 %. Imidlertid forventes Selskapets hovedaksjonær, Selvaag Gruppen AS, som eier ca 60,8 % av Aksjene forut for Tilbudet, å opprettholde et eierskap i området rundt 50 % etter gjennomføringen av Tilbudet.

Lock-up avtale ...... Tilretteleggerne har inngått en avtale om lock-up med Selvaag Gruppen AS, som eier ca 60,8 % av Selskapet før Tilbudet. Etter lock-up avtalen har Selvaag Gruppen AS akseptert å ikke tilby, selge, inngå avtale om eller på annen måte disponere aksjene i Selskapet i en periode på 12 måneder etter den første dagen med handel i Aksjene på Oslo Børs uten forutgående skriftlig aksept fra Tilretteleggerne.

Aksjenes ISIN ...... Selskapets Aksjer har (ISIN) NO 001 061245.0.

Oslo Børs Ticker ...... “SBO”

1.10.2 Tidsplan

Book-building periode og Bestillingsperiode starter kl. 09:00...... 23. mai 2012 Bestillingsperiode slutter kl. 12.00..……………………...…………..…………… På eller rundt 7. juni 20121 Book-building Periode slutter kl. 17.30…………………………………………… På eller rundt 7. juni 20122 Allokering av aksjene tilbudt i Tilbudet og beslutning om endelig størrelse på Tilbudet og endelig Tilbudspris…………………………………………………… På eller rundt 8. juni 2012 Offentliggjøring av resultatet av Tilbudet...... ……………. På eller rundt 8. juni 2012 Distribusjon av allokeringsbrev...... På eller rundt 8. juni 2012 Betalingsdato for Tilbudet til allmennheten og Ansattetilbudet……………………………………………………………………. På eller rundt 13. juni 2012 Levering og betaling av Aksjene i det Institusjonelle Tilbudet gjennom levering av lånte eksisterende aksjer...... På eller rundt 13. juni 2012 Utstedelsesdato for Tilbudsaksjene .………………………………………….…… På eller rundt 13. juni 2012 Levering av aksjer i Tilbudet til allmennheten og Ansattetilbudet...…………………………………………………………………… På eller rundt 13. juni 2012 Notering og første handelsdag for Aksjene (inkludert Tilbudsaksjene) på Oslo Børs...... ……………...... På eller rundt 14. juni 2012

Vennligst se kapittel 5 ”The Listing and the Offering” for nærmere detaljer vedrørende vilkårene for Tilbudet.

1.10.3 Bruttoproveny fra Tilbudet Bruttoprovenyet fra Tilbudet er forventet å utgjøre mellom NOK 500 millioner og NOK 800 millioner (inkludert konvertering av NOK 40 millioner til aksjer av selgerkreditt på NOK 50 millioner, ved motregning, som ytterligere beskrevet i punkt 5.1 og 6.1.6), ekskludert provenyet fra eventuelle Aksjer utstedt i henhold til Greenshoe-Opsjonen.

1.10.4 Kostnader Transaksjonskostnader og andre direkte kostnader som kan tillegges i forbindelse med Tilbudet og noteringen av Selskapets Aksjer på Oslo Børs vil bli dekket av Selskapet. Bestillere i Tilbudet vil ikke pådra seg meglerkostnader til Tilretteleggerne i direkte tilknytning til Tilbudet. Transaksjonskostnadene for Selskapet i tilknytning til Tilbudet og Noteringen estimeres å være i området mellom NOK 24 millioner og NOK 40 millioner på bakgrunn av intervallet i Tilbudets størrelse. Nettoprovenyet

1 Gjenstand for forkortelse eller forlengelse. 2 Gjenstand for forkortelse eller forlengelse.

vil være i området mellom NOK 476 millioner og NOK 760 millioner, med forbehold om den endelige størrelsen på Tilbudet. For en nærmere beskrivelse av benyttelsen av slikt proveny, se punkt 5.1 “Reasons for the stock exchange listing and the Offering”.

1.11 TILLEGGSINFORMASJON 1.11.1 Aksjekapital og aksjonærforhold Selvaag Bolig ASA er et norsk allmennaksjeselskap med organisasjonsnummer 992 587 776.

Selskapets registrerte aksjekapital før notering og Tilbudet er NOK 136 373 592 bestående av 68 186 796 Aksjer, hver med en pålydende verdi på NOK 2,00 fullt innbetalt og utstedt i henhold til norsk lov.

Alle utstedte Aksjer i Selskapet gir like aksjonærrettigheter i alle henseender. Det er kun en aksjeklasse i Selskapet og alle Selskapets Aksjer er fritt omsettelige i henhold til Selskapets vedtekter.

Se kapittel 13 “Shares and Share Capital” for en nærmere beskrivelse av Selskapets aksjekapital.

Aksjene er registrert i VPS under det internasjonale verdipapir identifikasjons nummer (ISIN) NO 001 061245.09. Selskapets kontofører utsteder er DNB Bank ASA, Verdipapirservice, Stranden 21, N-0021 Oslo.

1.11.2 Vedtekter Selskapets vedtekter er inntatt som vedlegg 1 til dette Prospektet.

1.11.3 Dokumenter for gjennomsyn For dette Prospektets virketid vil dokumentene listet opp nedenfor være tilgjengelig for gjennomsyn ved Selskapets registrerte adresse Lørenvangen 22, 0580 Oslo, ved henvendelse per telefon: +47 02224 eller nedlastbart fra Selskapets hjemmeside: www.selvaagbolig.no:

 Selskapets stiftelsesdokumenter og vedtekter;  Historisk finansiell informasjon for Selskapet og dets datterselskaper for hver av de siste to år før offentliggjøringen av dette Prospektet;  Børsmeldinger, inkludert kvartalsrapporter, distribuert av Selskapet gjennom Oslo Børs sitt informasjonssystem etter innsending av søknad om notering;  Alle rapporter, brev og andre dokumenter og ekspertuttalelser som er utarbeidet på anmodning fra utsteder, som helt eller delvis inngår i registreringsdokumentet, eller som det vises til i registreringsdokumentet

1.11.4 Uttalelser fra tredjeparter Informasjon i dette Prospektet som har blitt innhentet fra tredjeparter har blitt presist reprodusert og, så vidt Selskapet er klar over og evner å fastslå fra informasjonen offentliggjort av tredjeparter, ingen fakta har blitt utelatt som ville gjort den reproduserte informasjonen unøyaktig eller villedende. Informasjon innhentet fra tredjeparter er identifisert der den er blitt benyttet.

2. SUMMARY The following summary should be read as an introduction, and is qualified in its entirety, by the more detailed information and the Appendices appearing elsewhere in this Prospectus. Any decision to invest in the Shares should be based on a consideration of the Prospectus as a whole.

In case a claim relating to the information contained in the Prospectus is brought before a court, the plaintiff Investor might have to bear the cost of translating the Prospectus before legal proceedings are initiated. Civil liability attaches to those persons who have tabled the summary including any translation thereof, and applied for its notification, but only if the summary is misleading, inaccurate or inconsistent when read together with the other parts of the Prospectus. For definitions and terms used throughout this Prospectus, please refer to Section 19 “Definitions and Glossary of Terms”.

2.1 DESCRIPTION OF SELVAAG BOLIG ASA 2.1.1 Introduction Selvaag Bolig ASA (the “Company” or “Selvaag Bolig”) is a public limited liability company (“allmennaksjeselskap”) incorporated on 11 April 2008 as a private limited company and has later been converted to a public limited company regulated by the Norwegian Public Limited Companies Act and the laws of Norway, and is registered with the Norwegian Register of Business Enterprises with organisation number 992 587 776. The Company’s head office and registered office is Lørenvangen 22, 0580 Oslo, Norway. The mailing address of the Company is P.O. Box 544 Økern, N-0512 Oslo, Norway and the telephone number is +47 02224. The Company’s website is www.selvaagbolig.no and contact e-mail is [email protected]. The Company is the parent company of the Group as further described under Section 6.2 “Legal Structure of the Selvaag Bolig Group”. The operational activities of the Group are performed through subsidiaries. The Group employs approximately 87 persons as per the date of this Prospectus, whereof 42 are employed by the Company and 45 are employed by subsidiaries.

2.1.2 History The history of Selvaag Bolig can be summarized as follows:

1936 - Olav Selvaag started his career as a building engineer in Fr. Ringnes Entreprenør. 1945 - Fr. Ringnes Entreprenør was renamed Ringnes & Selvaag, Olav Selvaag now co-owner. 1948 - The “Ekeberg House” was constructed, which represented a new and revolutionary way of constructing residential homes. 1952 - Engineering, procurement and construction – construction of small residences in row with a new construction method and block apartments with external spiral stairs. Serial manufacturing of small residences and block apartments at Bestum in Oslo. 1953 - By 1953 Olav Selvaag had assumed the sole ownership of Ringnes & Selvaag, and the entity was renamed A/S Selvaagbygg. 1957 - Completion of more than 1,500 residential units at Veitvet, north of Oslo city centre. 1976 - Selvaag completed the construction of 4,000 terraced apartments at Vestli (north of Oslo city centre), which marked the start of a leading position within residential construction in the Oslo region. Moss hospital built with industrial expertise. 1980 - Proposal to roof Majorstua station 1986 - Proposal on waterline to release areas proximating the sea for residential and city development 1999 - Selvaag initiated the construction of modular based residences. Selvaag acquired Løren leir and adjacent land plots, north of Oslo city centre.

2002 - Selvaag won the tender for the development of Tjuvholmen in Oslo city centre. 2004 - The first Plussbolig apartments were brought to the market. 2008 - The residential development business was separated and transferred to a new sub-group, Selvaag Bolig. 2010 - Selvaag Bolig entered the Swedish real estate market through a joint venture with Veidekke Bostad AB. 2011 - Selvaag Bolig merged with Hansa Property Group AS and carried out a private placement directed towards the owners in the limited partnership Selvaag Pluss Eiendom KS, both completed in August. Selvaag Bolig converted into a public limited liability company in September. Following the merger, Selvaag Bolig became the owner of 62.5% of the shares in Bo En AS, a residential housing developer in the Stavanger region. In November 2011 Selvaag Bolig bought the remaining 37.5% of Bo En AS from Svithun Finans AS. Bo En AS is now a wholly-owned subsidiary of Selvaag Bolig, and recently changed the name to Selvaag Bolig Rogaland AS.

2.1.3 Business description According to the Articles of Association section 3, the Company’s object is:

“to acquire and develop residential housing projects for the purpose of sale, purchase and sale of property, as well as other affiliated business, hereunder commercial property. The Company may participate in other companies at home and abroad in relation to residential housing development.” (Office translation)

Selvaag Bolig is a residential real estate developer in Norway and over time in selected cities in the Scandinavian region, with three supporting business units; i) real estate brokerage, rentals and settlement through the business unit Meglerhuset Selvaag, ii) modular homes through Selvaag Bolig Modulbygg AS and iii) service offering in connection with the Plussbolig concept through Selvaag Pluss Service AS. The Company’s real estate development operations consist of both wholly owned and partly owned residential development projects, some in joint venture with external investors.

2.2 PURPOSE AND BACKGROUND OF THE LISTING AND THE OFFERING The contemplated Listing of the Shares on Oslo Børs is an important step in facilitating liquidity in the Shares and thereby making the Shares a more attractive investment for existing and new shareholders. The Listing will also improve the Company’s access to equity capital markets, in addition to further enhancing the Company’s access to bank financing and financing in the bond market, which will support the Company’s growth strategy. Post listing the Shares may also be used as consideration with respect to future investments.

The proceeds from the Offering are planned used for repaying in part or full the NOK 500 million equity bridge term loan from DNB Bank ASA (minimum NOK 250 million) (as further described in Section 12.5 “Borrowings”), repayment of the NOK 165 million loan from Selvaag Gruppen AS (following a subscription by Selvaag Gruppen AS for a similar amount in the Offering) (as further described in Section 12.5 “Borrowings”), and payment of costs related to the Offering. The proceeds also include settlement of NOK 40 million, which shall be settled by issue of shares in the Company, of the NOK 50 million seller’s credit from Svithun Finans AS (as further described in Section 5.1 and 6.1.6 “Acquisition of remaining part of Bo En AS (Selvaag Bolig Rogaland AS)”). If the Company receives more than NOK 500 million in gross proceeds from the Offering, such excess amount shall be used for further repayment of the equity bridge term loan until it is fully repaid. Any further capital raised will be used to finance the Company’s growth within its strategy, as described in Section 6.4 “Company strategy, concept and goals”, hereunder support the Company’s strategy of growing its position as one of the leading residential developers in Norway, and over time in selected cities in the Scandinavian region. Selvaag Bolig has through the merger with Hansa Property Group AS, the private placement directed towards the owners of Selvaag Pluss Eiendom KS and the acquisition of the remaining part of Bo En AS (renamed Selvaag Bolig Rogaland AS), already secured a significant land portfolio financed through the above-mentioned equity bridge term loan.

Selvaag Gruppen AS and Svithun Finans AS have pre-applied for Offer Shares at the Offer Price for NOK 165 million and NOK 40 million, respectively. In addition, Selvaag Gruppen AS has pre-applied for Offer Shares at

the Offer Price for an additional NOK 10 million.

2.3 THE LISTING The Shares are not currently listed on Oslo Børs or any other regulated market.

The Company has on 23 April 2012 applied for Listing of its Shares on Oslo Børs. It is expected that the board of directors of Oslo Børs will consider the application on 23 May 2012. Provided that the board of directors of Oslo Børs on 23 May 2012 approves the Shares for listing and the Offering is completed, the first day of trading of the Shares, including the Offer Shares, on Oslo Børs, is expected to be on or about 14 June 2012. The Shares are expected to trade under the ticker code “SBO”.

However, there can be no assurance that Oslo Børs will approve the Listing Application or that the Listing of the Shares will be effective.

2.4 SUMMARY OF RISK FACTORS A number of risk factors may adversely affect the Company. Below is a summary of the most relevant risk factors described in Section 3 “Risk factors”. The risks described below are risks concerning the Company and the Group, the Company’s industry and its Shares, that are deemed material by the Company and that the Company is aware of as of the date of this Prospectus. If any of the risks described below materialise, individually or together with other circumstances, the Group’s business, financial position, cash flow, results of operations and/or prospects could be materially adversely affected, which may cause a decline in the value and trading price of the Shares that could result in a loss of all or part of any investment in the Shares.

Risk related to the Company and the industry in which it operates:

 The Group depends on the demand for the residential properties developed, and the services offered, by the Group, particularly in Norway, but also in the other geographic areas in which the Group is present  The value of the Group’s assets is exposed to macroeconomic fluctuations  The Group may not be able to successfully implement its strategies  The Group faces development risks in its business of development and sale of residential properties  The Group is dependent on using sub-suppliers  The Group is dependent on attracting and retaining qualified personnel  The Group’s insurance coverage may be inadequate  Competition in the markets in which the Group operates may adversely affect the Group  The Group is exposed to environmental risks related to land  The Group is exposed to the risks of not being able to pay future dividends or service its debt  Risks related to related party transactions and separation from the Selvaag Group  Risks related to the merger with Hansa Property Group AS and the incorporation of Selvaag Pluss Eiendom KS and Bo En AS (now Selvaag Bolig Rogaland AS) in the Group  The Group has a limited operating history as a separate entity and investors may have difficulties assessing its historical performance and outlook for future performance and operating results  The Group is exposed to risk due to its use of the “Selvaag” name  The Group faces risks related to future growth  Changes in planning regulations and existing exemption practices by authorities may significantly affect the operations of the Group, and changes in infrastructure could materially impact on the demand for the Group’s residential units  Governmental laws and regulations could hinder or delay the Group’s operations, increase the Group’s operating costs and reduce demand for the Group’s services and/or restrict the Group’s ability to operate  The Group faces risks in relation to title and ownership to its properties

Risk related to financial issues:

 The Group is dependent on its current financing arrangements, renewal of these and/or obtaining new financing agreements to fund its operations and future investments  The Group is exposed to the lending market for purchasers of residential properties  The Group may require additional capital to execute the Group’s growth strategy

 The Group is subject to interest rate and currency risks  The Group is subject to the risk of changes in laws and regulations concerning tax and other duties  The Group is exposed to credit risk

Risk factors relating to the Shares:

 The Listing Application may not be approved by Oslo Børs, in which case the Offering will not be completed  The market price of the Shares may be highly volatile  The Shares may be subject to limited liquidity, and you may not be able to resell your Shares at or above the Offer Price  Shareholders not participating in future offerings of Shares or other equity instruments may be diluted  Investors may not be able to exercise their voting rights for Shares registered in a nominee account  The Company will have one majority shareholder at completion of the Offering  Future sales of Shares by the Company’s primary insiders or other major shareholders may depress the price of the Shares  The Shares are subject to certain restrictions on sale and transfer  Shareholders outside of Norway are subject to exchange rate risk

Other risks:

 The ability of shareholders of the Company to make claims against the Company in their capacity as such following registration of the share capital increase in the Norwegian Register of Business Enterprises is severely limited under Norwegian law  The ability to bring an action against the Company may be limited under Norwegian law  The Group may be subject to litigation that could have an adverse effect on the Group

2.5 DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 2.5.1 Board of Directors The Board of Directors consists of eight members: Olav Hindahl Selvaag (Chairman), Karsten Bomann Jonsen (Board member), Anne Breive (Board member), Wenche Kjølås (Board member), Ole Jarl Rettedal (Board member), Gisele Marchand (Board member), Christopher Brunvoll (Board member, employee representative) and Anne-Kari Drønen Mathiesen (Board member, employee representative).

2.5.2 Management The Group’s executive management comprises:

 Baard Schumann (born 1970), Chief Executive Officer

 Haavard Rønning (born 1973), Chief Financial Officer

 Petter Cedell (born 1964), Director Real Estate Investments

 Anne-Grethe Storaker (born 1954), Sales and Marketing Director

 Halvard Kverne (born 1962), Project Director

 Sverre Molvik (born 1971), Project Director

2.5.3 Employees As of the date of this Prospectus, Selvaag Bolig ASA and its subsidiaries employ 87 people, whereof 42 are employed by the Company and 45 are employed by subsidiaries. For more information, please refer to Section 8.3 ”Employees” below.

2.6 ADVISORS AND AUDITORS 2.6.1 Managers The Managers for the Offering and the Listing are ABG Sundal Collier Norge ASA, Munkedamsveien 45 E, P.O. Box 1444 Vika, N-0115 Oslo, Norway, DNB Markets, a division of DNB Bank ASA, Stranden 21, Aker Brygge, N-0021 Oslo, Norway and Pareto Securities AS, Dronning Mauds gt. 3, P.O. Box 1411 Vika, N-0115 Oslo, Norway.

2.6.2 Independent Auditor The Company’s independent auditor is PricewaterhouseCoopers AS (“PwC”), Dronning Eufemias gate 8, P.O. Box 748, NO-0106 Sentrum, Norway, with organisation number 987 009 713. For further information, please refer to Section 10.7.

2.7 SUMMARY OF OPERATING AND FINANCIAL INFORMATION The selected financial information set forth in this Prospectus should be read in conjunction with the financial statements and the notes to those statements set out in Appendix 2, 3 and 4 in addition to Section 10 and 11 in this Prospectus.

2.7.1 Summary of Consolidated Statements of Comprehensive Income

Three months ended Year ended Consolidated Statements of IFRS IFRS IFRS IFRS IFRS Comprehensive Income as at 31 March 2012 31 March 2011 31 December 31 December 31 December NOK '000 (unaudited) (unaudited) 2011 (audited) 2010 (audited) 2009 (audited)

Total revenue 191,971 41,198 309,822 379,130 354,046 Total operating expenses (175,621) (47,011) (302,682) (358,404) (317,880) Operating profit (loss) 16,350 (5,813) 7,140 20,726 36,166 Net financial expenses (16,546) (572) (36,115) (23,256) (13,128) Profit (loss) before income taxes (196) (6,385) (28,975) (2,530) 23,038 Profit (loss) for the period 5,884 (4,225) (5,710) (16,323) 2,470

Total comprehensive income for the period 5,881 (4,234) (5,706) (16.397) 3,976

2.7.2 Summary of Consolidated Statements of Financial Position

Consolidated Statements of Financial IFRS IFRS IFRS IFRS Position as at 31 March 2012 31 December 2011 31 December 2010 31 December 2009 NOK '000 (unaudited) (audited) (audited) (audited)

ASSETS Total non-current assets 712,641 698,979 626,107 709,690 Total current assets 5,031,995 4,725, 759 456,063 599,461 TOTAL ASSETS 5,744,636 5,424,738 1,082,170 1,309,151

EQUITY AND LIABILITIES Total equity 1,316,540 1,310,659 322,042 225,276 Total non-current liabilities 2,625,261 2,510,977 84,897 99,568 Total current liabilities 1,802,835 1,603,102 675,231 984,307 Total liabilities 4,428,096 4,114,079 760,128 1,083,875 TOTAL EQUITY AND LIABILITIES 5,744,636 5,424,738 1,082,170 1,309,151

2.7.3 Summary of Consolidated Statements of Cash Flow

Three months ended Year ended IFRS IFRS IFRS IFRS IFRS Consolidated Cash Flow as at 31 March 2012 31 March 2011 31 December 31 December 31 December NOK '000 (unaudited) (unaudited) 2011 (audited) 2010 (audited) 2009 (audited)

Net cash flow from operating activities (324,795) (10,911) (354,862) 28,580 69,042 Net cash flow from investing activities (5,932) (43,297) 32,852 (21,900) 13,838 Net cash flow from financing activities 247,356 62,039 703,692 2,517 (86,421) Net change in cash and cash equivalents (83,371) 7,831 381,682 9,197 (3,541) Cash and cash equivalents at the beginning of the period 395,207 13,525 13,525 4,328 7,869 Cash and cash equivalents at the end of the period 311,836 21,356 395,207 13,525 4,328

2.7.4 Significant changes in the Company’s financial or trading position since 31 March 2012 Except for transactions described in this Prospectus, there have been no significant changes in the financial or trading position of the Group since 31 March 2012.

2.7.5 Dependence on research and development, patents and licences In the opinion of the Group, its business is not materially dependent on any research and development, or on particular patents or licenses.

2.7.6 Trend information The Company has not experienced any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on the Company’s prospects for the current financial year. Please see Section 6 “Presentation of the Company”, Section 7 “Market overview”, Section 10 “Operating and financial information” and Section 13 “Shares and share capital” for general information about recent trends in the Company’s business and relevant markets.

2.8 SUMMARY OF CAPITALISATION AND INDEBTEDNESS

Capitalization as at NOK '000 31 March 2012 31 December 2011 Guaranteed -- Secured 639,253 517,940 Unguaranteed/unsecured 1,163,582 1,085,162 Total current debt A 1,802,835 1,603,102

Guaranteed -- Secured 2,287,748 2,224,942 Unguaranteed/unsecured 337,513 286,035 Total non-current debt B 2,625,261 2,510,977

Share capital 136,353 136,353 Reserves 1,661,748 1,661,751 Retained earnings (487,899) (493,906) Non-controlling interests 6,338 6,461 Shareholders’ equity C 1,316,540 1,310,659 Total capitalization A+B+C 5,744,636 5,424,738

Indebtedness as at NOK '000 31 March 2012 31 December 2011 Cash at bank and in hand 311,836 395,207 Cash equivalents - - Trading securities - -

Liquidity D 311,836 395,207

Current Financial Receivables E 225,936 119,527

Current bank debt 484,000 556,867 Current portion of non-current debt 833,891 632,761 Other current financial debt 484,944 413,474 Current financial debt I 1,802,835 1,603,102

Net current financial indebtedness (I-E-D) J 1,265,063 1,088,368

Non-current bank loans 2,495,393 2,376,300 Other non-current debt 122,049 120,743 Deferred tax 7,819 13,934 Non-current financial indebtedness N 2,625,261 2,434,667

Net financial indebtedness (J+N) O 3,890,324 3,599,345

2.9 MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 2.9.1 Major shareholders As of date of this Prospectus, the Company had in total 95 shareholders. The 20 largest shareholders are shown in the table below: Name of shareholder Number of shares Ownership (%) Selvaag Gruppen AS 41,430,087 60.8% Ferd Eiendomsinvest AS 3,604,856 5.3% Havfonn AS 3,604,856 5.3% Skips AS Tudor 3,235,517 4.7% IKM Eiendom AS 3,075,624 4.5% Storebrand Livsforsikring 2,741,388 4.0% Svithun Finans AS 1,181,968 1.7% T S Eiendom AS 1,181,968 1.7% Toluma Invest AS 813,318 1.2% Veidekke Eiendom AS 753,238 1.1% Rotac AS 710,033 1.0% Lema AS 534,501 0.8% MP Pensjon PK 522,829 0.8% SEB Enskilda ASA 383,225 0.6% AS Wingana 353,359 0.5% Hustadlitt A/S 351,449 0.5% Megaron AS 340,924 0.5% Jasto A/S 278,089 0.4% Statoil Pensjon 261,960 0.4% Leif Hübert Eiendom AS 254,507 0.4% Sum 20 largest shareholders 65,613,696 96.2% Other shareholders 2,573,100 3.8% Total number of shares 68,186,796 100.0%

Shareholders holding more than 5% of the share capital in the Company as of the date of this Prospectus are the shareholders listed in no. 1 to and including no. 3 in the table above.

2.9.2 Related party transactions The Company has entered into certain related party transactions with its subsidiaries and associated companies, and with its principal shareholder. Transactions with subsidiaries are eliminated on a consolidated level and are not reported as related party transactions in the Group’s consolidated financial statements. See Section 8.6 below for details of the Company’s related party transactions.

2.10 DETAILS OF THE OFFERING AND ADMISSION TO TRADING 2.10.1 Overview

The Offering ...... The Offering consists of a global offer to raise gross proceeds of minimum NOK 500 million and maximum NOK 800 million, with an Over-Allotment Option of an additional 10% as described in Section 5.10, through the issuance of up to 34,093,398 Offer Shares by the Company (including any Shares issued pursuant to the Greenshoe Option) through an Institutional Offering and a parallel Retail Offering and Employee Offering. The Offering also includes conversion of NOK 40 million into Shares of the NOK 50 million seller’s credit, by set-off, as further described in Sections 5.1 and 6.1.6. The Board has indicated that approximately 10% of the Offer Shares will be provisionally reserved for allotment in the Retail Offering and the Employee Offering and that approximately 90% of the Offer Shares will be provisionally reserved for allotment in the Institutional Offering.

Institutional Offering ...... The Institutional Offering in which Offer Shares are being offered subject to a lower limit per application of NOK 1,000,000 (a) to investors in Norway, (b) to investors outside Norway and the United States pursuant to applicable exemptions from local prospectus requirements, and (c) in the United States to QIBs as defined in, and in reliance on, Rule 144A under the Securities Act, subject to certain restrictions.

Retail Offering ...... The Retail Offering in which Offer Shares are being offered to the public in Norway, subject to a minimum application amount of NOK 10,500 and a maximum application amount of NOK 999,999, per applicant.

Employee Offering ...... The Employee Offering in which Offer Shares are being offered to the Company’s Eligible Employees (as defined in Section 5.7.1) subject to a minimum application amount of NOK 10,500 and a maximum application amount of NOK 100,000, and with a discount of 20% of the Offer Price. Eligible Employees will have to apply for Offer Shares in the Retail Offering if they wish to apply for further Offer Shares.

Offer Price ...... The Offer Price for the Offer Shares will be determined by the Board, in consultation with the Managers, after the end of the Book-building Period based on a book-building procedure conducted by the Managers. A non-binding Indicative Price Range from NOK 25 to NOK 32 per Offer Share has been set by the Company.

Conditions for Completion of the Offering ...... The completion of the Offering is subject to (i) the Board of Directors approving the completion of the Offering, (ii) Oslo Børs having approved the Company’s Listing Application, and (iii) the Company, subject to completion of the Offering, satisfying the conditions for listing on Oslo Børs as decided by Oslo Børs.

Voting Rights and Restrictions ...... Each Share gives the holder the right to cast one vote at general meetings of shareholders. See Section 13.9.3 “Voting rights – Amendments to the Articles of Association”.

Use of Proceeds ...... The proceeds from the Offering are planned used for repaying in part or full the NOK 500 million equity bridge term loan (minimum NOK 250 million) from DNB Bank ASA, the NOK 165 million loan from Selvaag Gruppen AS (following a subscription by Selvaag Gruppen AS for a similar amount in the Offering), and costs related to the Offering. The proceeds also include settlement of NOK 40 million, which shall be settled by issue of Shares in the Company, of the NOK 50 million seller’s credit from Svithun Finans AS. If the Company receives more than NOK 500 million in gross proceeds from the Offering, such excess amount shall be used for further repayment of the equity bridge term loan until it is fully repaid. Any further capital raised will be used to finance the Company’s growth within its strategy, as described in Section 6.4 “Company strategy, concept and goals” respectively, hereunder support Selvaag Bolig’s strategy of growing its position as one of the leading residential developers in Norway and over time in selected cities in the Scandinavian region. Selvaag Gruppen AS and Svithun Finans AS have pre-applied for Offer Shares at the Offer Price for NOK 165 million and NOK 40 million, respectively, as further described in Section 5.1. In addition, Selvaag Gruppen AS has pre-applied for Offer Shares at the Offer Price for an additional NOK 10 million.

Book-building Period in the Institutional Offering ...... From and including 23 May 2012 at 09:00 hours (CET) to 7 June 2012 at 17:30 hours (CET), subject to shortening or extension.

Application Period in the Retail Offering and the Employee Offering ...... From and including 23 May 2012 at 09:00 hours (CET) to 7 June 2012 at 12:00 hours (CET), subject to shortening or extension.

Allocation ...... Notifications of allocation are expected to be issued on or about 8 June 2012.

Payment and Delivery ...... It is expected that payment for the Offer Shares will be made on or about 13 June 2012. The Company expects to deliver the Offer Shares in the Institutional Offering through delivery of Borrowed Shares against payment on or about 13 June 2012. The Company expects to issue and deliver the Offer Shares in the Retail Offering and the Employee Offering on or about 13 June 2012.

Listing and Start of Trading ...... The Company has applied for Listing of the Shares on Oslo Børs. The board of directors of Oslo Børs is expected to consider the Listing Application in its board meeting to be held on 23 May 2012. If the Listing is approved and the Offering is completed, the Shares (including the Offer Shares) are expected to commence trading on Oslo Børs on or about 14 June 2012.

Share Capital before the Offering ...... The Company’s registered share capital prior to the Offering is NOK 136,373,592 consisting of 68,186,796 Shares each with a nominal value of NOK 2.00 fully paid and issued in accordance with Norwegian law.

Share Capital after the Offering ...... Following completion of the Offering the share capital of the Company will be increased by NOK 8,186,396, to NOK

204,560,388, divided into 102,280,194 Shares with a par value of NOK 2.00 each (assuming issuance of the maximum number of Offer Shares, including any Shares issued pursuant to the Greenshoe Option) (34,093,398).

Dilution ...... Assuming issuance of the maximum number of Offer Shares (including issuance of any Shares issued pursuant to the Greenshoe Option) (34,093,398), the Offering will result in an immediate dilution of approximately 33%. However, the Company’s main shareholder, Selvaag Gruppen AS, who owns approximately 60.8% of the Shares prior to the Offering is expected to maintain an ownership share in the region of 50% after completion of the Offering.

Lock-up Arrangement ...... The Managers have entered into a lock-up agreement with Selvaag Gruppen AS owning approximately 60.8% of the Company prior to the Offering. Under the lock-up agreement, Selvaag Gruppen AS has agreed not to offer, sell, contract or otherwise dispose of shares in the Company for a period of 12 months following the first day of trading of the Shares on Oslo Børs without the prior written consent of the Managers.

Share ISIN ...... The Shares have (ISIN) NO 001 0612450.

Oslo Børs Ticker Symbol ...... “SBO”

2.10.2 Timetable

Book-building Period and Application Period commence at 09:00 hours CET.....…. 23 May 2012 Application Period ends at 12:00 hours CET ...... …………… On or about 7 June 2012 Book-building Period ends at 17:30 hours CET ...... …………… On or about 7 June 2012 Allocation of the Offer Shares and resolution on final Offering size and final Offer Price ...... …………… On or about 8 June 2012 Publication of the results of the Offering...... ……………. On or about 8 June 2012 Allocation letters distributed...... On or about 8 June 2012 Payment Date for the Retail and Employee Offering...... …………….. On or about 13 June 2012 Delivery and payment of the Offer Shares in the Institutional Offering through delivery of Borrowed Shares...... On or about 13 June 2012 Issue date for the new Offer Shares…………………………………………….…… On or about 13 June 2012 Delivery of the Offer Shares in the Retail Offering and Employee Offering...…….. On or about 13 June 2012 Listing and commencement of trading in the Shares (including the Offer Shares) on Oslo Børs...... ……………...... On or about 14 June 2012

Please refer to Section 5 “The Listing and the Offering” for further details on the terms of the Offering.

2.10.3 Gross proceeds from the Offering The gross proceeds from the Offering are expected to amount to between NOK 500 million and NOK 800 million (including the conversion of NOK 40 million into Shares of the NOK 50 million seller’s credit, by set- off, as further described in Sections 5.1 and 6.1.6), excluding proceeds from any Shares issued pursuant to the Greenshoe Option.

2.10.4 Expenses Transaction costs and all other directly attributable costs in connection with the Offering and the Listing will be borne by the Company. Applicants in the Offering will not incur any brokerage fees to the Managers directly related to the Offering.

The transaction costs for the Company related to the Offering and Listing are estimated to be in the region of NOK 24 million to NOK 40 million given the interval of the Offering size. The net proceeds will be in the region of NOK 476 million to NOK 760 million subject to the final Offering size. For a description of the use of such proceeds, see Section 5.1 “Reasons for the stock exchange listing and the Offering”.

2.11 ADDITIONAL INFORMATION 2.11.1 Share capital and shareholder matters Selvaag Bolig ASA is a Norwegian public limited company with registration number 992 587 776.

The Company’s registered share capital prior to the Listing and the Offering is NOK 136,373,592 consisting of 68,186,796 Shares each with a nominal value of NOK 2.00 fully paid and issued in accordance with Norwegian law.

All issued Shares in the Company are vested with equal shareholder rights in all respects. There is only one class of shares and all Shares are freely transferable according to the Articles of Association.

See Section 13 “Shares and Share Capital” for a further description of the Company’s share capital.

The Shares are registered with VPS under the International Securities Identification Number (ISIN) NO 001 061245.0. The registrar for the Shares is DNB Bank ASA, Registrars Department, Stranden 21, Aker Brygge, N-0021 Oslo, Norway.

2.11.2 Articles of Association The Company’s Articles of Association are included as Appendix 1 to this Prospectus.

2.11.3 Documents on display For the life of this Prospectus, the documents indicated in the list below, may be inspected at the Company’s registered offices at Lørenvangen 22, N-0580 Oslo, Norway or requested by telephone: +47 02224 or downloaded from the Company’s web-site: www.selvaagbolig.no:

 the Memorandum of Incorporation and Articles of Association of the Company;  the historical financial information of the Company and its subsidiary undertakings for each of the two financial years preceding the publication of this Prospectus,  stock exchange notices, including quarterly reports, distributed by the Company through the Oslo Børs’ information system after the submission of the application for listing.  all reports, letters, and other documents and statements prepared by any expert at Company’s request any part of which is included or referred to in the Prospectus

2.11.4 Third party statements The information in this Prospectus that has been sourced from third parties has been accurately reproduced and as far as the Company is aware and able to ascertain from information published by that third party, no facts have been omitted which would render the reproduced information inaccurate or misleading. The source of third party information is identified where used.

3. RISK FACTORS

3.1 GENERAL Investing in the Shares involves a number of risks. Prospective investors should carefully consider, among other things, the specific risk factors set out in this section and the information elsewhere in the Prospectus before making an investment decision. The risks described below are risks concerning the Company and the Group, the Company’s industry and its Shares, that are deemed material by the Company and that the Company is aware of as of the date of this Prospectus. If any of the risks described below materialise, individually or together with other circumstances, the Group’s business, financial position, cash flow, results of operations and/or prospects could be materially adversely affected, which may cause a decline in the value and trading price of the Shares that could result in a loss of all or part of any investment in the Shares.

A prospective investor should consult his or her own expert advisors as to the suitability of an investment in the Shares. An investment in the Shares is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of the investment. The order in which the below risk factors are presented is not intended to give any indication of the likelihood of their occurrence nor of their severity or significance.

3.2 RISKS RELATED TO THE GROUP AND THE INDUSTRY IN WHICH IT OPERATES The Group depends on the demand for the residential properties developed, and the services offered, by the Group, particularly in Norway, but also in the other geographic areas in which the Group is present The Group depends on the demand for the residential properties developed, and services offered, by the Group, particularly in Norway, but also in the other countries in which the Group operates, such as Sweden and Spain.

The demand for residential properties is influenced by a number of factors, both at a micro and a macro level. Demand for residential units is in the long term among other factors dependent on demographic factors (e.g. population growth, age distribution and the number of persons per household), moving patterns and development in wealth. Whilst the two latter factors affect obsolescence of residential units, demographic factors determine the required growth in supply in order to keep up with population growth. In the short term, demand is dependent on the economic cycle (e.g. development in unemployment, wages, housing prices, etc.) and development in interest rates, which are linked to living expenses.

Approval of the Group’s construction projects is generally given when the pre-sale of housing units in the relevant project has reached 50-60%. The remaining 40-50% of the housing units is sold during the construction period. If the market demand changes significantly after the pre-sale and the approval of the start of construction, this may have a material negative impact on the Group's ability to sell remaining housing units and hence ultimately have a material adverse effect on the Group’s operations, business, financial performance and/or prospects.

Further, the demand for the residential properties developed, and the services offered, by the Group, and the Group’s ability to achieve the prices necessary to secure profitability depends on its products and services being seen as sufficiently attractive by customers.

If the economic conditions in Norway or in any of the other countries in which the Group operates deteriorate, the Group may be required to sell or let its residential houses at a loss or not be able to do so at all, which may have a material adverse effect on the Group’s business, operations, financial condition, cash flow, results of operation and/or prospects.

The value of the Group’s assets is exposed to macroeconomic fluctuations The Group is exposed to the economic cycle and macroeconomic fluctuations, since changes in the general economic situation could materially affect the value of the Group’s assets, including the value of the residential properties that are under development. Negative changes in the general economic situation could thus have a material adverse effect on the Groups’s business, financial condition, cash flow, results of operation and/or prospects.

The Group may not be able to successfully implement its strategies The Group´s strategy is, inter alia, to grow its position as one of the leading residential developers in Norway and over time in selected cities in the Scandinavian region. Maintaining and expanding the Group’s operations

and achieving its objectives involve inherent investments, costs and uncertainties and there is no assurance that the Group will achieve its objectives or other anticipated benefits. There is no assurance that the Group will be able to undertake its activities within their expected timeframe, that the investments and costs of the Group’s objectives will be at expected levels or that the benefits of its objectives will be achieved within the expected timeframe or at all. The Group’s strategy may also be affected by factors beyond its control, such as delays and limited availability of contracting firms and limited availability of acquisition opportunities. Any failures, delays or unexpected costs related to implementation of the Group’s strategies could have a material adverse effect on its business, financial condition, results of operations, cash flow and/or prospects.

The Group faces development risks in its business of development and sale of residential properties The Group’s primary business is to develop and sell residential properties. In its development projects, the Group assumes to a large extent the risks related to a property´s development potential (including but not limited to regulatory limitations), the timing of a project, the costs related to construction and development and the risks related to construction and sale of residential units. In the event the said risks materialise, the Group’s business, operations, financial position, results of operation, cash flows and/or prospects may be materially adversely affected.

The Group is dependent on using sub-suppliers The Group depends on external construction companies and service providers in connection with the development and construction of new projects. The Group is hence largely dependent upon a well functioning construction market both in terms of the number of players, construction capacity, price competitiveness and quality of delivery. The Group may suffer losses and may be exposed to additional costs on projects if a contractor should experience financial or other difficulties. In addition, the Group is exposed to the risk of cost overruns on projects, e.g. in the event of changes in plans or if additional work outside the scope originally agreed should become necessary during the construction phase.

The Group may through its sub-contractors encounter difficulties with respect to engineering, equipment or deliveries of material, schedule changes, delays in designs, weather-related delays and other problems associated with construction projects and the use of sub-contractors and such problems may impact the Group’s ability to complete a project in accordance with the original delivery schedule.

All of the above-mentioned risks may, if they materialise, have a material adverse effect on the Group’s business, operations, financial position, results of operation, cash flow and/or prospects.

The Group is dependent on attracting and retaining qualified personnel The Group depends on its directors and senior management for setting the Group’s strategic direction and managing the Group’s business, which are both crucial to the Group’s success. Furthermore, the Group’s continued success also depends upon the Group’s ability to attract and retain a large group of experienced professionals, including but limited to experienced project managers.

The Group does not maintain any key person insurance on any of the Group’s senior management or employees. The Group’s ability to retain senior management as well as experienced personnel will in part depend on the Group having appropriate staff remuneration and incentive schemes in place. The Group cannot give any assurance that the remuneration the Group has in place will be sufficient to retain the services of the Group’s experienced personnel.

The loss of, or inability to replace, the services of the Group’s senior management and/or the Group’s inability to replace, recruit, train or retain a sufficient number of experienced personnel could have a material adverse effect on the Group’s operations, business, financial conditions, financial performance, cash flow and/or prospects.

The Group’s insurance coverage may be inadequate The Group’s insurance policies may not fully compensate for losses associated with damage to its real estate assets or other assets. In addition, there are certain types of losses, e.g. losses of a catastrophic nature, such as floods and other disasters, that may be uninsurable or that are not economically insurable. Other factors might also result in insurance coverage being insufficient to repair or replace an asset if it is damaged or destroyed, such as inflation and environmental considerations.

The Group may incur significant losses or damage to its assets or business for which it may not be compensated fully or at all. In addition, the Group’s insurance policies may not cover the aggregate market value of the

Group’s portfolio, particularly if the market value of its portfolio increases. As a result, the Group may not have sufficient coverage against all losses that it may experience. Should an uninsured loss or a loss in excess of insured limits occur, the Group could also lose capital invested in the affected building as well as future revenue from that building. In addition, the Group could be liable to repair damage caused by uninsured risks. The Group may also remain liable for any debt or other financial obligation related to a damaged building.

Additionally, no assurance can be given that material losses in excess of insurance coverage limits or not insured at all will not occur in the future.

Any uninsured losses or losses in excess of insured limits could have a material adverse effect on the Group’s business, operations, financial condition, results of operations, cash flow and/or prospects.

Competition in the markets in which the Group operates may adversely affect the Group The residential housing business is highly competitive and fragmented and several large companies compete in the markets in which the Group operates, or may operate in the future. Further, numerous small companies compete with the Group. The Group’s larger competitors, which may have greater resources than the Group, may better withstand industry downturns, compete more effectively on the basis of offer and geographic scope and retain skilled personnel to a larger degree than the Group. The Group’s operations may be materially adversely affected if its current competitors or new market players introduce products with better features, prices or other characteristics than the Group. Competition may also result in significant price competition, particularly during market downturns. All of these factors could have a material adverse effect on the Group’s business, operations, results of operations and/or financial condition.

The Group is exposed to environmental risks related to land In the course of its business, the Group acquires land for development of residential housing projects and environmental risks related to land are an inherent part of the business. Environmental problems related to land may entail additional costs and/or liability for the Group that could have a material adverse effect on its business, operations, financial condition, results of operations, cash flow and/or prospects.

The Group is exposed to the risks of not being able to pay future dividends or service its debt The Group’s ability to pay dividends to shareholders and service any indebtedness is dependent upon the Company receiving sufficient funds from its operating subsidiaries. Funds may be transferred to the Company from subsidiaries by way of dividends, intra-group loans and/or group contributions, where possible. In addition to the need for profitability of its operating subsidiaries, there may exist or be imposed restrictions on a company’s ability to pay dividends, or otherwise transfer funds, to parent and/or holding companies. Furthermore, any restrictions in financing arrangements may reduce and/or restrict the Group’s ability to transfer funds between Group companies. Restrictions, by law or regulations or in financing arrangements, can affect the Group’s ability to pay dividends to shareholders and/or service any indebtedness. See Section 12.5 “Borrowings” for a description of covenants in the Group’s financial arrangements. Inability to secure debt could have a material adverse effect on the Group’s financial condition and/or prospect and could in worst case lead to a bankruptcy.

Risks related to related party transactions and separation from the Selvaag Group The Company and the Selvaag Group have been separated, but there are still some services purchased by the Company from the Selvaag Group as further set out in Section 8.6 “Related Party Transactions”, Section 13.8 “Shareholder Agreements” and Section 16.2 “Material Contracts”.

While the Company believes that the Group’s related party transactions are being conducted on an arm's length basis, the Company cannot provide assurance that the tax or other relevant authorities will not challenge these transactions in the future. Such challenges may have a material adverse effect on the Group's business, operations, financial condition and/or results of operations.

In the event that the Selvaag Group terminates any agreement relating to the purchase of such services, the Group must perform the relevant services itself. The Company may, at such point in time, not have the necessary employees to perform the functions required in this respect and this may have a material adverse effect on the Group’s business, results of operation, cash flow, financial position and/or prospects. It is intended that the Company in the future will employ these functions in-house and hence terminate said agreements with the Selvaag Group, except for the purchase of construction services where the Selvaag Group is expected to be one of several providers of such services, but there can be no assurance that such a transition will be successful.

The Group has historically provided services on an arm’s length basis to Hansa Property Group AS and Selvaag Pluss Eiendom KS, which until the Merger (as defined in Section 6.1.4) and Private Placement (as defined in Section 6.1.5) have been partly owned by the Group. No assurance can be made that tax or other relevant authorities will not challenge these transactions in the future which may in turn have a material adverse effect on the Group's business, operations, financial condition and/or results of operations.

Risks related to the merger with Hansa Property Group AS and the incorporation of Selvaag Pluss Eiendom KS and Bo En AS (now Selvaag Bolig Rogaland AS) in the Group The merger between the Company and Hansa Property Group AS and the private placement directed towards the owners of Selvaag Pluss Eiendom KS were completed in August 2011, and the acquisition of the remaining part of Bo En AS (Selvaag Bolig Rogaland AS) was completed in November 2011. The merger and the incorporation of Selvaag Pluss Eiendom KS and Bo En AS (Selvaag Bolig Rogaland AS) will involve the integration of businesses which previously operated independently. Such integration processes can be challenging and involve risks. There can be no assurance that the integrations will be successful. Any delays, unexpected liabilities and/or unexpected costs incurred in the integration processes or failure to achieve synergies and other benefits contemplated by the merger or the incorporation of Selvaag Pluss Eiendom KS or Bo En AS (Selvaag Bolig Rogaland AS) in the Group may have a material adverse effect on the Group’s business, operations, financial condition, results of operations, cash flow and/or prospects.

The Group has a limited operating history as a separate entity and investors may have difficulties assessing its historical performance and outlook for future performance and operating results Due to the recent completion of the Merger, the Private Placement and the acquisition of the remaining part of Bo En AS (Selvaag Bolig Rogaland AS), financial information upon which prospective investors can evaluate the Group’s historical financial performance is available only from the Pro-Forma Financial Statements (income statement information only) included herein. The Pro Forma Financial Statements are not necessarily indicative of what the Group’s financial statements would have been had the Merger, the Private Placement and the acquisition of the remaining part of Bo En AS (Selvaag Bolig Rogaland AS) taken place on 1 January 2011. As a consequence, investors may have difficulties assessing the Group’s historical performance and outlook for future performance and operating results.

The Group is exposed to risk due to its use of the “Selvaag” name The Group has the right to use the “Selvaag” brand and related brands containing the “Selvaag” name, as well as related internet domain names as further described in Section 16.2 “Material Contracts”. However, the Group can make no assurances that it in the future will retain the right to, or want to, continue to use the “Selvaag” brand in its operations and marketing. Further, actions by Selvaag Gruppen AS and its associated companies or persons using the “Selvaag” name could harm the Group’s reputation, which could in turn materially adversely affect the Group’s business, operations, results of operation, cash flow, financial condition and/or prospects.

The Group faces risks related to future growth The Group may acquire or contract additional land, companies, enterprises or assets (including employees) in the future as a part of its growth strategy. The Group may experience difficulties in developing and/or integrating these additional assets, businesses and/or employees into the Group’s existing operations. The Group’s future growth will depend upon a number of factors, both within and outside of the Group’s control. It may not be successful in expanding its operations, and any expansion may not be profitable, or may result in losses for the Group. This could ultimately have a material adverse effect on the Group’s operations, business, financial condition, results of operation, cash flow and/or prospects.

If the Group’s operations continue to expand, the Group may need to increase the number of employees and enhance the scope of operational and financial systems to handle the increased complexity and a potential expansion of the geographic area of the Group’s operations. The Group cannot give any assurance that it will be able to attract and retain qualified management and employees for this purpose or that the Group’s current operational and financial systems and controls will be adequate as the Group grows. This could ultimately have a material adverse effect on the Group’s operations, business, financial condition, results of operation, cash flow and/or prospects.

Changes in planning regulations and existing exemption practices by authorities may significantly affect the operations of the Group, and changes in infrastructure could materially impact on the demand for the Group’s residential units Changes in planning regulations by relevant authorities, and changes in existing exemption practices from current planning regulations by relevant authorities, which could prevent the Group from utilizing its properties

as contemplated and/or reduce the Group’s ability to acquire suitable properties for development, may have a material adverse effect on the financial condition and operations of the Group, including the demand for the residential units developed by the Group. Furthermore, existing planning regulations may limit the possibility to further develop the Group’s properties. Any of the foregoing risks could, if they materialise, have a material adverse effect on the Group’s business, operations, financial condition, results of operations, cash flow and/or prospects.

Furthermore, the level of utilization allowed will affect the profitability of a project. It is not possible to assure that the Group will obtain permits for utilization at the assumed levels. In addition, the planning authorities have discretion to set conditions for the Group’s permits, including the right to require the Group to make costly investments or the right to set conditions based on environmental or other considerations, which may have a material adverse effect on a residential project’s profitability and the value of the Group’s properties and hence on the Group’s business, operations, financial position, results of operation, cash flow and/or prospects.

Governmental laws and regulations could hinder or delay the Group’s operations, increase the Group’s operating costs and reduce demand for the Group’s services and/or restrict the Group’s ability to operate The Group’s operations are significantly affected by governmental laws and regulations. The industry in which the Group operates is affected by changing laws and regulations relating to the residential housing business in general. The laws and regulations affecting the Group’s business and services include, among others, laws and regulations relating to; • construction of residential properties; • sale of residential properties; • protection of the environment; • quality, health and safety; • various forms of government regulation and economic conditions; and • taxation.

The Group and its suppliers are required to commit significant financial and managerial resources to comply with these laws and regulations. The Group cannot predict the future costs of complying with these laws and regulations, and any new laws or regulations could materially increase the Group’ expenditures in the future. Existing laws or regulations or adoption of new laws or regulations imposing more stringent restrictions on the Group’s activities, or any non-compliance with these, could have a material adverse effect on the Group by increasing its operating costs, reducing the demand for its services and/or restricting its ability to operate.

The Group faces risks in relation to title and ownership to its properties In order to achieve full title and legal protection for the acquisition of a property, a requirement pursuant to the Norwegian Land Registration Act is that the acquisition shall be duly registered in the land register. In this context legal protection means that the buyer of the property is protected from the seller’s or former owner’s creditors seizing the property and further against subsequent competing legal rights over the property. If an acquisition is not registered in the land register, and the seller, or a former owner goes bankrupt or the seller’s creditors seize the property etc, the buyer’s ownership rights to the property may be challenged.

However, registering the acquisition and thus obtaining legal title is subject to stamp duty of 2.5% of the property’s market value at the time of the registration. In major property transactions in Norway, it is not unusual that the buyer does not register the acquisition.

For several properties owned by the Group, the Group has not registered legal title to the properties in the land register; i.e. the legal title is still mainly held by the former owners of the various properties. In order to reduce the risk of seizure as described above, the Group has for some, but not all, of the properties tried to secure its economic interests to the properties by registration of charges over the properties with a declaration of restriction in right of disposition. From a legal point of view there may be uncertainties connected to such security arrangements, and the arrangements do not imply that the Group (through the relevant Group company), as the real owner of the properties, has obtained full legal protection for the acquisition. The Norwegian Supreme Court passed a decision in 2008, which was relevant to, and to some extent confirmed, this possible risk. In the event that this risk materialises, it could have a material adverse effect on the Group’s business, operations, financial condition, results of operations, cash flow and/or prospects.

In connection with the above, it should be noted that the Group at any time is free to carry out the registration with the land register if the relevant conditions are met, which, in turn, would trigger stamp duty of 2.5% of the property’s market value at the time of the registration.

3.3 FINANCIAL RISKS The Group is dependent on its current financing arrangements, renewal of these and/or obtaining new financing agreements to fund its operations and future investments The Group is dependent on current financing agreements, renewal of these and/or obtaining new financing agreements to fund its operations, additional acquisitions, working capital or capital expenditures. The Group cannot assure that it will be able to obtain any additional financing or retain or renew current financing upon expiry on terms that are acceptable, or at all. An increase in the Group’s level of debt financing and/or adverse change in the terms of its current financing agreements, may increase financing costs and reduce the Group’s profitability, and agreements related to debt financing may contain terms and conditions that restrict the Group’s freedom to operate and manage the Group’s business, such as terms and conditions that require the Group to maintain debt service coverage ratios and leverage ratios, require the Group to use its assets, including its cash balances, as collateral for the Group’s loans, and/or which restrict the Group’s ability to pay dividends or distribute funds to its shareholders. The Group’s financial agreements also contain cross default provisions, which may increase effects of any breach with the terms of such arrangements.

If the Group becomes unable to comply with the restrictions and financial covenants in its agreements related to debt financing or to service its debt when due, there could be a default under the terms of these agreements, which could result in an acceleration of repayment of funds that have been borrowed and have a material adverse effect on the Group’s results of operation, cash flow, financial condition and/or prospects and in worst case lead to a bankruptcy.

The Group is dependent on Selvaag Gruppen AS and/or its affiliates maintaining an ownership of more than 1/3 of the Shares, or being able to exercise more than 1/3 of all voting rights, in the Company, to avoid mandatory prepayment of its NOK 1,350 million financial arrangements with DNB Bank ASA.

The Group is exposed to the lending market for purchasers of residential properties The demand for the residential properties developed by the Group is, inter alia, dependent upon potential customer’s ability to get financing and banks’ willingness to provide financing for the purchase of residential real estate. This will among other things depend upon households’ interest expenses versus total disposable income, the quality of the security provided, prevailing regulations and the general lending market.

Norwegian and Swedish authorities have introduced a requirement for 15% equity for private persons acquiring residential property. This may limit the demand for the Group’s properties and make the Group unable to obtain profit margins at the same levels as historically experienced, and hence have a material adverse effect on the Group’s business, operations, results of operations, cash flow, financial condition and/or prospects.

The Group may require additional capital to execute the Group’s growth strategy The Group’s business is capital intensive and, to the extent the Group does not generate sufficient cash from its operations, the Group may need to raise additional funds through public or private debt or equity financing to execute the Group’s growth strategy and to fund capital expenditures as well as for other corporate purposes such as unexpected costs and liabilities incurred by the Group. Adequate sources of capital funding may not be available when needed or may not be available on favourable terms. If the Group raises additional funds by issuing equity securities, this may result in a dilution of the holdings of existing shareholders. If funding is insufficient at any time in the future, the Group may be unable to fund its maintenance requirements and acquisitions, take advantage of business opportunities, respond to competitive pressures or secure its other funding requirements, any of which could have a material adverse impact on the Group’s business, operations, financial condition, results of operations, cash flow and/or prospects.

The Group is subject to interest rate and currency risks The Group currently has certain indebtedness under existing debt facilities which is subject to variable interest rates. Interest rates are influenced by and highly sensitive to many factors, including but not limited to governmental, monetary and tax policies, domestic and international economic and political conditions, and other factors beyond the Group’s control. Changes in interest rates could have a material adverse effect on the Group’s business, operations, financial condition, results of operations, cash flow and/or prospects.

The Group is further exposed to risks due to fluctuations in currency exchange rates. The majority of the Group’s revenues and costs are currently in NOK, but the Group has operations in Sweden and Spain and purchases modules in EUR from the Baltic countries and from Poland. Changes in currency exchange rates may result in significant financial losses for the Group. With the Group’s contemplated geographical expansion across borders, the Group may be more exposed to fluctuating exchange rates. The Company attempts to

minimize these risks by implementing hedging arrangements as appropriate, but there can be no assurance that such arrangements will cover all exposures and changes in exchange rates could hence have a material adverse effect on the Group’s business, operations, financial condition, results of operations, cash flow and/or prospects.

The Group is subject to the risk of changes in laws and regulations concerning tax and other duties Changes in laws and regulations regarding tax and other duties/charges, including but not limited to VAT and the stamp duty on transfer of properties, may involve new and changed parameters applicable to the Group and taxation of/charges for the Group at higher levels than as of the date hereof. For example, the municipalities of Norway may impose new or increased property value taxes. Changes in tax and charges laws and regulations may among other effects reduce the profitability of investing in property, the demand for the Group’s properties and hence the profitability of the Group. Furthermore, tax implications of transactions and dispositions of the Group are to some extent based on judgment of applicable laws and regulations pertaining to taxes and duties/charges. It cannot be ruled out that the tax or charges authorities and courts may assess the applicability of taxes and charges to the Group differently from the Group itself. An occurrence of one or more of the aforementioned factors may have a material adverse effect on the Group’s business, operations, financial condition, cash flow, results of operations and/or prospects.

The Group is exposed to credit risk In addition to the credit risks towards suppliers and other contract parties, the Group has economic exposure against its customers in its ordinary course of business (trade receivables). Residential real estate buyers in Norway generally pay 10% of the purchase price when a purchase contract is entered into and the remaining 90% upon delivery of the residential unit. Any re-sale of property prior to delivery and bankruptcy, insolvency or other inability by the Group’s customers to pay their invoices when they fall due may materially adversely affect the Group’s liquidity capital, results of operations, cash flow and/or financial condition.

3.4 RISK FACTORS RELATING TO THE SHARES The Listing Application may not be approved by Oslo Børs, in which case the Offering will not be completed Completion of the Offering is conditional upon inter alia the approval of the Listing Application for Listing on Oslo Børs, which is to be considered by the board of directors of Oslo Børs on 23 May 2012. There can be no assurances that the Company will be admitted to Listing or that the Board of Directors (as defined in Section 5.2.2) (and/or the general meeting of the Company as the case may be) will approve the completion of the Offering. Consequently, there is a risk that the Offering will not be completed and that the Shares will not be listed.

The market price of the Shares may be highly volatile The trading price of the Shares could fluctuate significantly, e.g. in response to quarterly variations in operating results, adverse business developments, interest rates, changes in financial estimates by securities analysts, matters announced in respect of major business partners or competitors, or changes to the regulatory environment in which the Group operates or macroeconomic fluctuations. The market price of the Shares could decline due to sales of a large number of the Shares in the market or the perception that such sales could occur. Such sales could also make it more difficult for the Company to offer equity securities in the future at a time and at a price that are deemed appropriate or when required.

The Shares have never been traded on a market before, and there is therefore no historic price level for the trading in the Shares.

The Shares may be subject to limited liquidity, and you may not be able to resell your Shares at or above the Offer Price There can be no assurance as to the liquidity of the Shares in the secondary market, the ability of the holders of the Shares to sell their Shares or the price at which the holders would be able to sell their Shares. The liquidity of the trading market in the Shares, and the market price quoted for the Shares, may be materially adversely affected by changes in the Group’s financial performance or prospects or in the prospects for companies in the Group’s industry in general. As a result, holders cannot be certain that an active trading market will develop for the Shares. It may not be possible to sell the Shares at attractive terms or at all.

Shareholders not participating in future offerings of Shares or other equity instruments may be diluted The Group may require additional capital in connection with financing of new capital-intensive projects, working capital or other purposes in the future. In addition, the Group may incur unanticipated liabilities or expenses. If the Company issues Shares in the future in order to secure such capital requirements, such issuance

may result in the then existing shareholders of the Company sustaining a significant dilution.

Under Norwegian law, existing shareholders have pre-emptive rights to subscribe for new Shares issued by the Company against consideration in cash, unless these rights are waived by a general meeting of the Company’s shareholders with two-thirds majority of the attending Shares. U.S. shareholders and shareholders in other foreign jurisdictions may be prevented, pursuant to applicable law, from receiving, trading or exercising pre- emptive rights for new Shares. If such shareholders are not able to receive, trade, or exercise pre-emptive rights or other rights granted in respect of their Shares in any rights offering or other placements by the Company, they may not receive the economic benefit of such rights and consequently become significantly diluted.

Investors may not be able to exercise their voting rights for Shares registered in a nominee account Beneficial owners of the Shares that are registered in a nominee account (such as through brokers, dealers or other third parties) may not be able to vote for such Shares unless their ownership is re-registered in their names with the VPS (as defined in Section 5.5.5) prior to the Company’s general meetings. The Company cannot guarantee that beneficial owners of the Shares will receive the notice of a general meeting in time to instruct their nominees to either effect a re-registration of their Shares or otherwise vote for their Shares in the manner desired by such beneficial owners.

The Company will have one majority shareholder at completion of the Offering Following completion of the Offering, it is expected that Selvaag Gruppen AS will be the majority shareholder of the Company with the ability to significantly influence the Group, as well as the outcome of matters submitted for the vote of the Company’s shareholders, including but not limited to election of members of the Board of Directors. The commercial goals and other interests of Selvaag Gruppen AS as a shareholder, and those of the Group or other shareholders, may not always be aligned and this concentration of ownership may not always be in the best interest of the Group and/or the Company’s other shareholders.

Future sales of Shares by the Company’s primary insiders or other major shareholders may depress the price of the Shares The market price of the Shares could decline as a result of sales of a large number of Shares in the market after this Offering or the perception that these sales could occur, or any sale of Shares by any of the Company’s primary insiders or other major shareholders from time to time. These sales, or the possibility that these sales may occur, might also make it more difficult for the Company to issue or sell equity securities in the future at a time and at a price it deems appropriate or when required. Although the Company’s largest shareholder as of the date of this Prospectus, Selvaag Gruppen AS, is subject to an agreement with the Managers that restricts its ability to sell or transfer its Shares for twelve months following the first day of trading of the Shares, the Managers may, in their sole discretion and at any time, waive the restrictions on sales or transfer during this period. Additionally, following this period, all Shares owned by the Selvaag Gruppen AS will be eligible for sale in the public market, subject to applicable securities laws restrictions.

The Shares are subject to certain restrictions on sale and transfer The Company has not registered the Shares under the Securities Act or the securities laws of other jurisdictions than Norway and the Company does not intend to do so in the future. The Shares may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S), nor may they be offered or sold in any other jurisdiction in which the registration of the Shares is required but has not taken place, unless an exemption from the applicable registration requirement is available or the offer or sale of the Shares occurs in connection with a transaction that is not subject to such restrictions. There can be no assurances that shareholders residing or domiciled in the United States or other jurisdictions outside Norway will be able to transfer the Shares freely or to participate in future share issues or to receive or exercise any subscription rights for new Shares. See Section 17 “Selling and Transfer Restrictions” for a description of certain restrictions on sale and transfer of the Shares.

Shareholders outside of Norway are subject to exchange rate risk The Offer Shares will be priced in Norwegian kroner (“NOK”), the lawful currency of Norway, the trading price of the Shares on Oslo Børs will be quoted in NOK and any future payments of dividends on the Shares will be denominated in NOK. Accordingly, any investor outside Norway is subject to adverse movements in the NOK against their local currency, as the foreign currency equivalent of any dividends paid on the Shares or price received in connection with any sale of the Shares could be materially adversely affected.

3.5 OTHER RISKS The ability of shareholders of the Company to make claims against the Company in their capacity as such following registration of the share capital increase in the Norwegian Register of Business Enterprises is severely limited under Norwegian law The ability of any subscriber of Shares, including but not limited to the Offer Shares, and holder of Shares to make claims against the Company following registration of the share capital increase pertaining to the relevant Shares in the Norwegian Register of Business Enterprises is severely limited under Norwegian law.

The ability to bring an action against the Company may be limited under Norwegian law The Company is a public limited company incorporated under the laws of Norway. The rights of holders of Shares are governed by Norwegian law and by the Articles of Association. These rights differ from the rights of shareholders in other jurisdictions, e.g. typical U.S. corporations. In particular, Norwegian law limits the circumstances under which shareholders of Norwegian companies may bring derivative actions. Under Norwegian law, any action brought by the Company in respect of wrongful acts committed against the Company takes priority over actions brought by shareholders in respect of such acts. In addition, it may be difficult to prevail in a claim against the Company under, or to enforce liabilities predicated upon, foreign securities laws. For these reasons investors may encounter difficulties in serving summons and other documents relating to court proceedings to any of the entities within the Group and its management. For the same reason it may be more difficult and more costly for investors to obtain judgements against, and enforce judgments issued against, the entities within the Group and its directors and management.

The Group may be subject to litigation that could have an adverse effect on the Group The inherent risks in the Group’s business expose the Group to litigation, including personal injury litigation, environmental litigation, contractual litigation with customers and suppliers, intellectual property litigation, tax or securities litigation, and lawsuits including the possible arrest of the Group’s houses and/or properties and/or other assets. The Group is currently involved in, and anticipates that the Group will in the future be involved in, litigations and other disputes from time to time. The Company cannot predict with certainty the outcome or effect of any claim or other litigation or dispute. Any future litigation or dispute may have a material adverse effect on the Group’s business, operations, financial position, results of operations, cash flow and/or prospects, because of potential negative outcomes, the costs associated with prosecuting or defending such lawsuits or claims, and the diversion of management's attention to these matters. Please see Section 16.1 “Disputes” below for ongoing legal disputes.

4. RESPONSIBILITY FOR THE PROSPECTUS

4.1 THE BOARD OF DIRECTORS OF SELVAAG BOLIG ASA This Prospectus has been prepared in connection with the Offering, and the Listing of the Shares on Oslo Børs, as described herein. The Board of Directors of Selvaag Bolig ASA hereby declares that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is, to the best of our knowledge, in accordance with the facts and contains no omissions likely to affect its import.

Oslo, 22 May 2012

The Board of Directors of Selvaag Bolig ASA

Olav Hindahl Selvaag Karsten Bomann Jonsen Anne Breive (Chairman)

Wenche Kjølås Ole Jarl Rettedal Gisele Marchand

Christopher Brunvoll Anne-Kari Drønen Mathiesen

4.2 NOTICE REGARDING FORWARD LOOKING STATEMENTS This Prospectus includes “forward-looking” statements, including, without limitation, projections and expectations regarding the Company’s future financial or other position, business strategy, plans and objectives. All forward-looking statements included in this Prospectus are based on information available to the Company, and views and assessments of the Company, as of the date of this Prospectus. The Company expressly disclaims any obligation or undertaking to release any updates or revisions of the forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, unless such update or revision is prescribed by law.

When used in this document, the words “anticipate”, “believe”, “estimate”, “expect”, “seek to”, “may”, “plan” and similar expressions, as they relate to the Company, its subsidiaries or its management, are intended to identify forward-looking statements. The Company can give no assurance as to the correctness of such forward- looking statements and investors are cautioned that any forward-looking statements are not guarantees of future performance. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company and its subsidiaries, or, as the case may be, the industry, to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company and its subsidiaries are operating or will operate. Factors that could cause the Company’s actual results, performance or achievements to materially differ from those in the forward-looking statements include, but are not limited to, those described in Section 3 “Risk Factors” and elsewhere in the Prospectus.

Given the aforementioned uncertainties, prospective investors are cautioned not to place undue reliance on any of these forward-looking statements.

4.3 THIRD PARTY STATEMENTS The information in this Prospectus that has been sourced from third parties has been accurately reproduced and as far as the Company is aware and able to ascertain from information published by that third party, no facts have been omitted which would render the reproduced information inaccurate or misleading. The source of third party information is identified where used.

5. THE LISTING AND THE OFFERING

5.1 REASONS FOR THE STOCK EXCHANGE LISTING AND THE OFFERING The contemplated Listing of the Shares on Oslo Børs is an important step in order to facilitate liquidity in the Shares and thereby making the Shares a more attractive investment for existing and new shareholders. The Listing will also improve the Company’s access to equity capital markets, in addition to further enhancing the Company’s access to bank financing and financing in the bond market, and thereby support the Company’s growth strategy. Post listing, the Shares may also be used as consideration with respect to future investments.

The proceeds from the Offering are planned used for repayment in part or in full of the NOK 500 million equity bridge term loan from DNB Bank ASA (minimum NOK 250 million) (as further described in Section 12.5 “Borrowings”), repayment of the NOK 165 million loan from Selvaag Gruppen AS (as further described in Section 12.5 “Borrowings”) following a subscription by Selvaag Gruppen AS for a similar amount in the Offering, and payment of costs in relation to the Offering. Included in the proceeds is also the settlement of NOK 40 million of the NOK 50 million seller’s credit provided by Svithun Finans AS to the Company in relation to the purchase of the remaining part of the shares in Bo En AS (Selvaag Bolig Rogaland) (as further described below and in Section 6.1.6). If the Company receives more than NOK 500 million in gross proceeds from the Offering, such excess amount shall be used for further repayment of the equity bridge term loan until it is fully repaid. Any further capital raised will be used to finance the Company’s growth within its strategy, as described in Section 6.4 “Company strategy, concept and goals”, hereunder support Selvaag Bolig’s strategy of growing its position as one of the leading residential developers in Norway and over time in selected cities in the Scandinavian region. Selvaag Bolig has through the merger with Hansa Property Group AS, the private placement directed towards the owners of Selvaag Pluss Eiendom KS and the acquisition of the remaining part of Bo En AS (Selvaag Bolig Rogaland AS), already secured a significant land portfolio financed through the above-mentioned equity bridge term loan.

In parallel with, and as part of, the Offering, the Company will carry out a private placement directed towards Svithun Finans AS to settle NOK 40 million of the NOK 50 million seller’s credit provided by Svithun Finans AS in connection with the Company’s purchase of the remaining shares in Bo En AS (Selvaag Bolig Rogaland AS). Such part of the seller’s credit shall be settled by issuance of Offer Shares to Svithun Finans AS at the Offer Price for NOK 40 million. See Section 6.1.6 “Acquisition of remaining part of Bo En AS (Selvaag Bolig Rogaland AS)” for further information.

5.2 THE OFFERING 5.2.1 Existing share capital The Company’s registered share capital prior to the Offering is NOK 136,373,592 consisting of 68,186,796 Shares each with a nominal value of NOK 2.00 fully paid and issued in accordance with the Norwegian Public Limited Companies Act. All of the Shares are vested with equal shareholder rights in all respects. There is only one class of shares issued and all Shares are freely transferable according to the the Norwegian Public Limited Companies Act and the Company’s Articles of Association.

For further information on applicable legislation and the rights attached to the Shares, see Sections 13 “Shares and share capital” and 14 “Securities trading in Norway”.

5.2.2 The Offer Shares On 19 April 2012, the general meeting of the Company resolved to authorise the board of directors of the Company (the “Board of Directors” or the “Board”) to increase the Company’s share capital by up to NOK 63,208,552 in connection with an offering to be conducted in connection with the Listing. The general meeting made the following resolution (office translation from Norwegian):

“The Company’s Board of Directors is authorised to increase the share capital on the following conditions:

1. The share capital may, in one or more rounds, be increased by a total of up to NOK 63,208,552.

2. The authorisation may be used for issuing shares in connection with the offer to subscribe for shares in connection with a listing of the Company on Oslo Børs.

3. The authorisation shall be valid until the ordinary general meeting in 2013, but no later than 30 June 2013. This authorisation replaces the authorisations with an equivalent purpose of NOK 2,629,801.60 and NOK 53,253,482.40, respectively, resolved by the general meeting on 21 November 2011 (however, not the authorisation of NOK 9,861,756.00).

4. The shareholders pre-emption rights for subscription of shares may be set aside.

5. The authorisation includes increase of the share capital against contribution in kind or the right to incur the Company special obligations.

6. The authorisation does not include decision on merger and cannot be used in connection with takeover situations where the Company has been notified that a public offer for the Company’s shares shall be made.”

The maximum number of Shares to be issued in accordance with the abovementioned authorisation is 31,604, 276.

The authorisation of NOK 9,861,756 referred to in the general meeting’s resolution above was granted for the purpose of purchasing the shares in Bo En AS (Selvaag Bolig Rogaland AS) from Svithun Finans AS, as further described in Section 6.1.6. At the time of the ordinary general meeting held on 19 April 2012, the remaining amount of the authorisation was NOK 4,978,244. The authorisation shall be used for issuing Offer Shares to Svithun Finans AS, as settlement of NOK 40 million of the NOK 50 million seller’s credit from Svithun Finans AS, as further described in Sections 5.1 and 6.1.6. The maximum number of Offer Shares that may be issued to Svithun Finans AS pursuant to the authorisation is 2,489,122. The actual number of Shares to be issued to Svithun Finans AS under the authorisation is, however, limited to NOK 40,000,000 divided by the Offer Price.

The Board will after the expiry of the Book-building Period make the required decisions regarding the number of Offer Shares to be issued, the Offer Price and the other terms relating to the Offering in accordance with the authorisations described above. In the Offering, and in order to meet the purpose of the Offering, the pre- emptive rights of the Company’s existing shareholders will be set aside for the benefit of the applicants in the Offering.

The Offer Shares (except for any Shares to be issued upon exercise of the Greenshoe Option, as defined in Section 5.10) are expected to be issued on or about 13 June 2012.

5.3 CONDITIONS FOR COMPLETION OF THE OFFERING Completion of the Offering is conditional upon (i) the Board of Directors approving the Offering, including resolving the final Offer Price, the number of Offer Shares to be issued by the Company and the allocation of the Offer Shares, (ii) Oslo Børs having approved the Listing Application, and (iii) the Company, subject to completion of the Offering, satisfying the conditions for listing on Oslo Børs, as decided by Oslo Børs.

There can be no assurance that these conditions will be satisfied.

Assuming that the conditions are satisfied, it is expected that the Shares will be listed on Oslo Børs on or about 14 June 2012.

If these conditions are not satisfied, the Offering will be cancelled, all orders/applications for Offer Shares will be disregarded, any allocations made will be deemed not to have been made and any payments made by investors will be returned without interest. No financial claim or claim for compensation can be made against the Company and/or the Managers if the Offering is not completed.

In addition, the Company reserves the right, in its sole discretion (and for any reason), in consultation with the Managers, to withdraw, suspend or revoke the Offering at any time prior to the final allocation of the Offer Shares.

The Offering will be unconditional at the time of the allocation of the Offer Shares.

5.4 OVERVIEW OF THE OFFERING The Offering consists of a global offer to raise gross proceeds of minimum NOK 500 million and maximum NOK 800 million (including the conversion of NOK 40 million of the NOK 50 million seller’s credit as further described in Sections 5.1 and 6.1.6). In addition, the Company has, on certain terms and conditions and subject to the consent of the Board, granted an option to ABGSC acting as stabilisation manager (the “Stabilisation Manager”) to over-allot a number of Shares equal to up to 10% of the Offer Shares allocated in the Offering (the “Additional Shares”) and a Greenshoe Option to subscribe for a number of new Shares up to the maximum number of Additional Shares, as further described in Section 5.10 “Over-Allotment Option, Stabilisation and Greenshoe Option”. Any Additional Shares allocated will be borrowed from the Company’s largest shareholder Selvaag Gruppen AS. The maximum number of Shares to be issued by the Company (including any Shares to be issued pursuant to the Greenshoe Option) will be 34,093,398. The final number of Offer Shares and the number of Additional Shares (if any) will be determined by the Board in consultation with the Managers after the expiry of the Book-building Period. The final number of new Shares to be issued by the Company will also depend on the extent of the exercise of the Greenshoe Option, if any, during the 30-day period starting on the first day of trading of the Shares on Oslo Børs, as further described in Section 5.10 “Over-Allotment Option, Stabilisation and Greenshoe Option”, below.

The Offering comprises:

 The Institutional Offering, in which Offer Shares are being offered subject to a lower limit per application of NOK 1,000,000 per applicant (a) to investors in Norway, (b) to investors outside Norway and the United States pursuant to applicable exemptions from local prospectus and other filing requirements, and (c) in the United States to QIBs as defined in, and in reliance on, Rule 144A under the Securities Act, subject to certain restrictions.  The Retail Offering, in which Offer Shares are being offered to the public in Norway, subject to a minimum application amount of NOK 10,500 and a maximum application amount of NOK 999,999 per applicant.  The Employee Offering, in which Offer Shares are being offered to the Company’s Eligible Employees (as defined in Section 5.7.1) subject to a minimum application amount of NOK 10,500 and a maximum application amount of NOK 100,000 for each Eligible Employee and with a discount of 20% of the Offer Price.

All offers and sales outside the United States will be made in reliance on Regulation S under the Securities Act.

This Prospectus does not constitute an offer of, or an invitation to purchase or subscribe, the Offer Shares in any jurisdiction in which such offer or sale would be unlawful. For further details, see “Important information” on page ii and Section 17 “Selling and Transfer Restrictions”.

The Board has indicated that approximately 10% of the Offer Shares will be provisionally reserved for allocation in the Retail Offering and the Employee Offering and that approximately 90% of the Offer Shares will be provisionally reserved for allocation in the Institutional Offering. The final allocation between the offerings will be determined by the Company in consultation with the Managers following the expiry of the Book-building Period/Application Period based on the number and size of applications received in the respective offerings relative to the total number and size of applications received in the Offering. The Company reserves the right to deviate from the anticipated allocation between the three offerings without further notice.

The Book-building Period for the Institutional Offering is expected to last from 23 May 2012 at 09:00 hours (CET) to 7 June 2012 at 17:30 hours (CET). The Application Period for the Retail Offering and the Employee Offering is expected to last from 23 May 2012 at 09:00 hours (CET) to 7 June 2012 at 12:00 hours (CET). The Company, together with the Managers, reserve the right to shorten or extend the Book-building Period and/or the Application Period at any time, depending on the number and size of applications received in the Offering, in aggregate or individually. Any shortening of the Book-building Period and/or the Application Period will be announced through Oslo Børs’ information system on or before 09:00 (CET) on the last day of the shortened Book-building Period and/or the Application Period. Any extension of the Book-building Period and/or the

Application Period will be announced through Oslo Børs’ information system on or before 09:00 hours (CET) on the first business day following the expiration date of the (then-prevailing) Book-building Period and/or the Application Period. A shortening or extension of the Book-building Period and/or the Application Period can be made one or several times, provided, however, that the Book-building Period and/or the Application Period will in no event close earlier than 12:00 hours (CET) on 30 May 2012 or be extended beyond 17:30 hours (Book- builind Period) and 12:00 hours (Application Period) (CET) on 28 June 2012. In the event of a shortening or extension of the Book-building Period and/or the Application Period, the allocation date, the payment date for the Offer Shares (expected to be on or about 13 June 2012) (the “Payment Date”) and the date of delivery of the Offer Shares will be changed accordingly, but the date of listing and commencement of trading on Oslo Børs will not necessarily be changed.

Any shortening or extension of the Book-building Period will lead to a similar shortening or extension of the Application Period in the Retail Offering and the Employee Offering.

The final results of the Offering are expected to be announced through Oslo Børs’ information system under the Company’s ticker “SBO” on or about 14 June 2012.

The timetable set out below provides certain indicative key dates for the Offering (subject to shortening or extension or other changes in the time table):

Book-building Period and Application Period commence at 09:00 hours CET.....… 23 May 2012 Application Period ends at 12:00 hours CET ...... …………… On or about 7 June 2012 Book-building Period ends at 17:30 hours CET ...... …………… On or about 7 June 2012 Allocation of the Offer Shares and resolution on final Offering size and final Offer Price ...... …………… On or about 8 June 2012 Publication of the results of the Offering...... ……………. On or about 8 June 2012 Allocation letters distributed...... On or about 8 June 2012 Payment Date for the Retail and Employee Offering...... …………….. On or about 13 June 2012 Delivery and payment of the Offer Shares in the Institutional Offering through delivery of Borrowed Shares...... On or about 13 June 2012 Issue date for the new Offer Shares…………………………………………….…… On or about 13 June 2012 Delivery of the Offer Shares in the Retail Offering and Employee Offering...…….. On or about 13 June 2012 Listing and commencement of trading in the Shares (including the Offer Shares) on Oslo Børs...... ……………...... On or about 14 June 2012

5.5 THE INSTITUTIONAL OFFERING 5.5.1 Offer Price A non-binding indicative price range from NOK 25 to NOK 32 per Offer Share (the “Indicative Price Range”) has been set by the Board after consultation with the Managers. The final Offer Price may be set within, below or above the Indicative Price Range at the sole discretion of the Board. The Offer Price will be determined by the Board in consultation with the Managers based on the applications received and not withdrawn in the Institutional Offering during the Book-building Period. Investors’ applications for Offer Shares in the Institutional Offering are, after the end of the Book-building Period, irrevocable and binding regardless of whether the Offer Price is set within, above or below the Indicative Price Range (subject to any price limitation per Offer Share set by the investor).

The final Offer Price is expected to be announced through Oslo Børs’ information system under the Company’s ticker “SBO” on or about 14 June 2012.

5.5.2 Book-building Period The Book-building Period will last from and including 23 May 2012 at 09:00 hours CET to 7 June 2012 at 17:30 hours CET, unless shortened or extended as described in Section 5.4 “Overview of the Offering” above.

5.5.3 Minimum application

The Institutional Offering is subject to a minimum application of NOK 1,000,000 per applicant. Investors in Norway who intend to place an application for less than NOK 1,000,000 must do so in the Retail Offering (or, if they are Eligible Employees, in the Employee Offering).

5.5.4 Order procedures Applications for Offer Shares in the Institutional Offering must be made during the Book-building Period (as shortened or extended, if applicable) by informing one of the Managers shown below of the number of Offer Shares that the investor wishes to order, and the price per Offer Share that the investor is offering to pay for such Offer Shares.

ABG Sundal Collier DNB Markets Munkedamsveien 45 Stranden 21 N-0250 Oslo N-0021 Oslo Norway Norway Tel: +47 22 01 60 00 Tel: +47 22 94 88 80

Pareto Securities AS Dronning Mauds gt. 3 N-0250 Oslo Norway Tel: +47 22 87 87 00

All applications in the Institutional Offering will be treated in the same manner regardless of which Manager the applicant chooses to place the application with. Any orally placed application in the Institutional Offering will be binding upon the investor and subject to the same terms and conditions as a written application. The Managers can, at any time and at their sole discretion, require the investor to confirm any orally placed application in writing. Applications made in the Institutional Offering may be withdrawn or amended by the investor at any time up to the end of the Book-building Period. At the close of the Book-building Period (including expiry based on a shortening of the Book-building Period if applicable), all applications that have not been withdrawn are irrevocable and binding upon the investor.

By placing an order (as amended, if applicable), and not having withdrawn such order prior to the end of the Book-building Period, the investor irrevocably (i) confirms its request to subscribe for and purchase at the Offer Price the number of Offer Shares allocated to such investor up to the number of Offer Shares ordered or for an amount equal to the aggregate application amount (as applicable) and (ii) authorises and instructs each of the Managers acting jointly or severally (or someone appointed by them) to subscribe for the Offer Shares allocated to such investor on behalf of such investor and to re-deliver such Offer Shares to Selvaag Gruppen AS pursuant to the share lending arrangement described in Section 5.5.5 “Allocation, payment and delivery of Offer Shares” below.

By placing an order, the applicant is responsible for the correctness of the information given by the applicant. By submitting an order, the applicant confirms and warrants to have read this Prospectus and that the applicant is eligible to subscribe for Offer Shares under the terms set forth herein.

5.5.5 Allocation, payment and delivery of Offer Shares The Managers expect to issue notifications of allocation of Offer Shares in the Institutional Offering on or about 8 June 2012.

In order to facilitate prompt delivery of the Offer Shares to investors against payment for the Offer Shares in the Institutional Offering, the Offer Shares allocated in the Institutional Offering will be delivered to the investors in the form of existing Shares borrowed by the Managers from Selvaag Gruppen AS (the “Borrowed Shares”) pursuant to a share lending agreement between the Managers and Selvaag Gruppen AS. The Borrowed Shares will be equal in all respects to the new Offer Shares issued in connection with the Offering. A number of new Offer Shares equal to the number of Borrowed Shares, less any Shares borrowed by the Stabilisation Manager to cover Additional Shares, will then be issued to the Managers on behalf of the investors for re-delivery of the Borrowed Shares to Selvaag Gruppen AS on or about 13 June 2012.

Payment by applicants in the Institutional Offering will take place against delivery of Offer Shares (in the form of Borrowed Shares) to the account in the Norwegian Central Securities Depository (the “VPS”) specified by

the investor. Delivery and payment for Offer Shares is expected to take place on or about 13 June 2012.

The Managers may pre-fund payment for any Offer Shares and Additional Shares not paid by the applicants when due.

Irrespective of such pre-funding (if any), the non-paying applicants will remain fully liable for payment of the Offer Shares allocated to them. If payment is not received by the Payment Date, the Company and the Managers reserve the right to re-allocate, cancel or reduce the allocation or otherwise dispose of the allocated Offer Shares in accordance with, and to the fullest extent permitted by, applicable laws.

The Offer Shares allocated to non-paying applicants and paid for by the Managers will be transferred to a VPS account operated by the Managers. Offer Shares will, subject to applicable law, not be transferred to a non- paying applicant until payment for the relevant Offer Shares is received.

The Managers reserve the right, without further notice, to sell or assume ownership of any unpaid Offer Shares if payment has not been received by the third day after the Payment Date.

If Offer Shares are sold on behalf of the applicant, such sale will be for the applicant’s account and risk and the applicant will be liable for any loss, costs, charges and expenses suffered or incurred by the Company and/or the Managers as a result of, or in connection with, such sales, and the Company and/or the Managers may enforce payment of any amount outstanding in accordance with applicable law.

For late payment, interest will accrue on the amount due at a rate equal to the prevailing interest rate under the Norwegian Act on Interest on Overdue Payments of 17 December 1976, no. 100, which, at the date of this Prospectus, was 8.75% per annum.

The Offer Shares allocated in the Institutional Offering are expected to be issued and re-delivered to Selvaag Gruppen AS on or about 13 June 2012 and together with the existing Shares (including the Borrowed Shares) be listed and commence trading on Oslo Børs on or about 14 June 2012. In the event that the share capital increase pertaining to the Offering is not registered in the Norwegian Register of Business Enterprises (in Norwegian: Foretaksregisteret) by 13 June 2012, the Listing and commencement of trading of the Offer Shares on Oslo Børs will be postponed to the trading day on Oslo Børs following such registration.

U.S. investors will place their orders for the Offer Shares through DNB Markets or U.S.-registered broker- dealers owned by or affiliated with ABGSC or Pareto Securities.

5.6 THE RETAIL OFFERING 5.6.1 Offer Price The price for the Offer Shares offered in the Retail Offering will be the same as in the Institutional Offering, see Section 5.5.1 “Offer Price” above.

Each applicant in the Retail Offering will be permitted, but not required, to indicate when ordering through the VPS online subscription system or on the application form to be used to apply for Offer Shares in the Retail Offering attached to this Prospectus as Appendix 13 in Norwegian and Appendix 14 in English (the “Retail Application Form”), that the applicant does not wish to be allocated Offer Shares should the Offer Price be set above the higher end of the Indicative Price Range. If the applicant so elects, the applicant will not be allocated any Offer Shares in the event that the Offer Price is set above the higher end of the Indicative Price Range. If the applicant does not expressly stipulate such reservation when ordering through the VPS online subscription system or on the Retail Application Form, the application will be binding regardless of whether the Offer Price is set within or above (or below) the Indicative Price Range.

5.6.2 Application Period The Application Period, during which applications for Offer Shares in the Retail Offering will be accepted, will last from 23 May 2012 at 09:00 hours (CET) to 7 June 2012 at 12:00 hours (CET), unless shortened or extended (see Section 5.4 “Overview of the Offering” for further details).

5.6.3 Minimum and maximum application The Retail Offering is subject to a minimum application amount of NOK 10,500 and a maximum application

amount of NOK 999,999 for each applicant.

Multiple applications are allowed in the Retail Offering. One or multiple applications from the same applicant in the Retail Offering with a total application amount in excess of NOK 999,999 will be adjusted downwards to an application amount of NOK 999,999. If two or more identical application forms are received from the same investor in the Retail Offering, the application form will only be counted once unless otherwise explicitly stated on one of the application forms. In the case of multiple applications through the online application system or applications made both on a physical application form and through the online application system, all applications will be counted. Investors who intend to place an order in excess of an amount of NOK 999,999 must do so in the Institutional Offering.

5.6.4 Application procedure and application offices Applicants in the Retail Offering are recommended to apply for Offer Shares through the VPS online application system by following the link to such online application system on the following internet pages: www.dnb.no/emisjoner, www.abgsc.no and www.paretosec.no. Applicants in the Retail Offering without access to the VPS online application system must apply by using the Retail Application Form attached to this Prospectus as Appendix 13 in Norwegian or as Appendix 14 in English. Retail Application Forms, together with this Prospectus, can be obtained from the Company, the Company's website www.selvaagbolig.no, the Managers’ websites listed above or the application offices set out below. Applications made through the VPS online application system must be duly registered during the Application Period.

The application offices for physical applications in the Retail Offering are:

ABG Sundal Collier DNB Markets Registrar Department Munkedamsveien 45 Stranden 21 N-0250 Oslo N-0021 Oslo Norway Norway Tel: +47 22 01 60 00 Tel: +47 22 94 88 80 Fax: +47 22 01 60 62 Fax: +47 22 48 29 80

Pareto Securities AS Dronning Mauds gt. 3 N-0250 Oslo Norway Tel: +47 22 87 87 00 Fax: +47 22 83 43 09

All applications in the Retail Offering will be treated in the same manner regardless of which Manager the applications are placed with. Further, all applications in the Retail Offering will be treated in the same manner regardless of whether they are submitted by delivery of a Retail Application Form or through the VPS online application system.

Retail Application Forms and electronic applications made through the VPS online application system that are incomplete or incorrectly completed, or that are received after the expiry of the Application Period, may be disregarded without further notice to the applicant. Properly completed Retail Application Forms must be received by one of the application offices listed above or registered electronically through the VPS application system by 12:00 hours (CET) on 7 June 2012, unless the Application Period is being shortened or extended. Neither the Company nor the Managers may be held responsible for postal delays, unavailable fax lines, internet lines or servers or other logistical or technical matters that may result in applications not being received in time or at all by an application office.

Subject to Section 5.6.1 “Offer Price”, all applications made in the Retail Offering will be irrevocable and binding upon receipt of a duly completed Retail Application Form by one of the application offices, or in the case of applications through the VPS online application system, upon registration of the application, irrespective of any shortening or extension of the Application Period, and cannot be withdrawn, cancelled or modified by the applicant after having been received by the application office, or in the case of applications through the VPS online application system, upon registration of the application.

By making an application, the applicant irrevocably authorises and instructs each of the Managers acting jointly

or severally (or someone appointed by them) to subscribe for the Offer Shares allocated to the applicant at the Offer Price, subject to the terms and conditions set out in this Prospectus and the Retail Application Form.

The applicant is responsible for the correctness of the information filled in on the Retail Application Form or in the VPS online application system by the applicant. By signing and submitting a Retail Application Form or submitting an application in the VPS online application system, the applicant confirms and warrants to have read this Prospectus and that the applicant is eligible to subscribe for Offer Shares under the terms set forth herein.

5.6.5 Allocation, payment and delivery of Offer Shares DNB Markets, acting as settlement agent for the Retail Offering, expects to issue notifications of allocation of Offer Shares in the Retail Offering on or about 8 June 2012, by issuing allocation notes to the applicants by mail. Any applicant wishing to know the precise number of Offer Shares allocated to it, may contact one of the application offices during business hours from on or about 8 June 2012 and onwards. Applicants who have access to investor services through an institution that operates the applicant’s account with the VPS for the registration of holdings of securities should be able to see how many Offer Shares they have been allocated from on or about 8 June 2012 at 12:00 hours CET and onwards.

The Offer Shares allocated in the Retail Offering will be new Shares issued in connection with the Offering and will be delivered to investors after the registration of the share capital increase in the Norwegian Register of Business Enterprises (in Norwegian: Foretaksregisteret), expected to occur on or about 13 June 2012.

In registering an application through the VPS online application system or completing a Retail Application Form, each applicant in the Retail Offering will authorise DNB Markets (on behalf of the Managers) to debit the applicant’s Norwegian bank account for the total amount due for the Offer Shares allocated to the applicant. The applicant further authorises DNB Markets (on behalf of the Managers) to obtain confirmation from the applicant’s bank that the applicant has the right to dispose over the amount specified and that there are sufficient funds in the account to cover payment. The applicant’s bank account number must be stipulated on the VPS online application or on the Retail Application Form. Subject to any shortening or extension of the Application Period, accounts will be debited on or about 13 June 2012 (the Payment Date), and there must be sufficient funds in the stated bank account from and including 12 June 2012. Applicants who do not have a Norwegian bank account must ensure that payment for the allocated Offer Shares is made on or before the Payment Date (13 June 2012). Details and instructions can be obtained by contacting DNB Markets, Registrar Department, telephone number: + 47 22 48 35 86.

DNB Markets (on behalf of the Managers) is only authorised to debit each account once, but reserves the right (but has no obligation) to make up to three debit attempts through 20 June 2012 (or such later date that will apply if the Application Period is extended) if there are insufficient funds in the account on the Payment Date. Should any applicant have insufficient funds on his or her account, or should payment be delayed for any reason, or if it is not possible to debit the account, interest will accrue on the amount due at a rate equal to the prevailing interest rate under the Norwegian Act on Interest on Overdue Payments of 17 December 1976, no. 100, which at the date of this Prospectus was 8.75 per annum.

The Managers may pre-fund payment for any Offer Shares and Additional Shares not paid by the applicants when due.

The Offer Shares allocated to non-paying applicants will be transferred to a VPS account operated by the Managers. The Offer Shares will not be transferred to the non-paying applicant until payment for the relevant Offer Shares has been received.

The Managers reserve the right, without further notice, to sell or assume ownership of any unpaid Offer Shares if payment has not been received by the third day after the Payment Date.

Managers as a result of, or in connection with, such sales, and the Company and/or the Managers may enforce payment for any amount outstanding in accordance with applicable law.

Subject to timely payment by the applicant, issuance and delivery of the Offer Shares allocated in the Retail Offering to the applicant’s VPS account is expected to take place on or about 13 June 2012. The Offer Shares allocated in the Retail Offering are expected to be listed and commence trading on Oslo Børs on or about 14 June 2012. In the event that the share capital increase pertaining to the Offering is not registered in the Norwegian Register of Business Enterprises (in Norwegian: Foretaksregisteret) by 13 June 2012, delivery of the Offer Shares to the applicants in the Retail Offering will be postponed until such registration actually takes place and the Listing and commencement of trading of the Offer Shares will be postponed to the trading day on Oslo Børs following such registration.

5.7 THE EMPLOYEE OFFERING 5.7.1 Eligible employees Only the employees in Selvaag Bolig ASA and its Norwegian subsidiaries owned by 90% or more as of the last date of the Application Period are eligible to participate in the Employee Offering, subject to said employees being taxable to Norway (the “Eligible Employees”).

5.7.2 Offer Price The price for the Offer Shares offered in the Employee Offering will be the same as in the Institutional Offering see Section 5.5.1 “Offer Price”); provided however, that each Eligible Employee will receive a discount of 20% of the Offer Price. Offer Shares offered and allocated to Eligible Employees under the Employee Offering with a discount will result in a taxable benefit for these employees if and to the extent the total discount exceeds an amount of NOK 1,500. Please refer to Section 15.3 for more information on the taxation of the discount in the Employee Offering.

When ordering, each applicant in the Employee Offering will be permitted, but not required, to indicate on the application form to be used to apply for Offer Shares in the Employee Offering, attached to this Prospectus as Appendix 15 in Norwegian and Appendix 16 in English (the “Employee Application Form”), that the applicant does not wish to be allocated Offer Shares should the Offer Price, prior to the 20% discount, be set higher than the higher end of the Indicative Price Range. If the applicant so elects, the applicant will not be allocated any Offer Shares in the event that the Offer Price is set above the higher end of the Indicative Price Range. If the applicant does not expressly stipulate such reservation on the Employee Application Form, the application will be binding regardless of whether the Offer Price is set within or above (or below) the Indicative Price Range.

5.7.3 Application Period The period during which applications for Offer Shares will be accepted in the Employee Offering will last from 23 May 2012 at 09:00 hours (CET) to 7 June 2012 at 12:00 hours (CET), unless shortened or extended (see Section 5.4 “Overview of the Offering” for further details).

5.7.4 Minimum and maximum application The Employee Offering is subject to a minimum application amount of NOK 10,500 and a maximum application amount of NOK 100,000, for each Eligible Employee applicant.

Multiple applications are allowed. One or multiple applications from the same applicant in the Employee Offering with a total application amount in excess of NOK 100,000 will be adjusted downwards to an application amount of NOK 100,000. If two or more identical application forms are received from the same Eligible Employee in the Employee Offering, the application form will only be counted once unless otherwise explicitly stated on one of the application forms, provided however that any total application amount per Eligible Employee in excess of NOK 100,000 will be adjusted downwards to an application amount of NOK 100,000. Investors who intend to place an order in excess of NOK 100,000 must do so in the Retail Offering, and without the benefit of the 20% discount for such order.

5.7.5 Application procedure and application offices Eligible Employees in the Employee Offering must use the Employee Application Form attached to this Prospectus as Appendix 15 in Norwegian or as Appendix 16 in English to apply for Offer Shares in the

Employee Offering. It is not possible to make applications in the Employee Offering through the VPS online application system. Employee Application Forms, together with this Prospectus, can be obtained from the Company, the Company's web page www.selvaagbolig.no, the Managers’ web pages www.dnb.no/emisjoner, www.abgsc.no and www.paretosec.no or by contacting the application offices set out in Section 5.6.4 “Application procedure and application offices” above.

The application office for applications in the Employee Offering is:

DNB Markets Registrar Department Stranden 21 N-0021 Oslo Norway Fax: +47 22 48 29 80

Employee Application Forms that are incomplete or incorrectly completed or are received after the expiry of the Application Period may be disregarded without further notice to the applicant. Subject to any shortening or extension of the Application Period, properly completed Employee Application Forms must be received by DNB Markets by 12:00 hours (CET) on 7 June 2012. Neither the Company nor DNB Markets may be held responsible for postal delays, unavailable fax lines, internet lines or servers or other logistical or technical matters that may result in applications not being received in time or at all by DNB Markets. Subject to Section 5.7.2 “Offer Price”, all applications made in the Employee Offering will be irrevocable and binding upon receipt of a duly completed Employee Application Form by DNB Markets, irrespective of any shortening or extension of the Application Period, and cannot be withdrawn, cancelled or modified by the applicant after having been received by DNB Markets.

By making an application, the applicant irrevocably authorises and instructs each of the Managers acting jointly or severally (or someone appointed by them) to subscribe for the Offer Shares allocated to the applicant subject to the terms and conditions set out in this Prospectus and the Employee Application Form.

The applicant is responsible for the correctness of the information filled in on the Employee Application Form submitted by the applicant. By signing and submitting an Employee Application Form, the applicant confirms and warrants to have read this Prospectus and that the applicant is eligible to subscribe for Offer Shares under the terms set forth herein.

5.7.6 Allocation, payment for and delivery of Offer Shares DNB Markets, acting as settlement agent for the Employee Offering, expects to issue notifications of allocation of Offer Shares in the Employee Offering on or about 8 June 2012, by issuing allocation notes to the applicants by mail. Any applicant wishing to know the precise number of Offer Shares allocated to it, may contact DNB Markets during business hours from on or about 8 June 2012 onwards.

The Offer Shares allocated in the Employee Offering will be new Shares issued in connection with the Offering and be delivered to investors after the registration of the share capital increase in the Norwegian Register of Business Enterprises (in Norwegian: Foretaksregisteret), expected to occur on or around 13 June 2012.

In submitting the Employee Application Form, each applicant in the Employee Offering will authorise DNB Markets (on behalf of the Managers) to debit the applicant’s Norwegian bank account for the total amount due for the Offer Shares allocated to the applicant. The applicant further authorises DNB Markets (on behalf of the Managers) to obtain confirmation from the applicant’s bank that the applicant has the right to dispose over the amount specified and that there are sufficient funds in the account to cover payment. The applicant’s bank account number must be stipulated on the Employee Application Form. Subject to any shortening or extension of the Application Period, accounts will be debited on or about 13 June 2012 (the Payment Date), and there must be sufficient funds in the stated bank account from and including 12 June 2012. Applicants who do not have a Norwegian bank account must ensure that payment for the allocated Offer Shares is made on or before the Payment Date (13 June 2012). Details and instructions can be obtained by contacting DNB Markets, telephone number: +47 22 48 35 86.

account on the Payment Date. Should any applicant have insufficient funds on his or her account, or should payment be delayed for any reason, or if it is not possible to debit the account, interest will accrue on the amount due at a rate equal to the prevailing interest rate under the Norwegian Act on Interest on Overdue Payments of 17 December 1976, no. 100, which at the date of this Prospectus was 8.75% per annum.

The Managers may pre-fund payment for any Offer Shares and Additional Shares not paid by the applicants when due.

The Offer Shares allocated to non-paying applicants will be transferred to a VPS account operated by the Managers. Offer Shares will not be transferred to a non-paying applicant until payment for the relevant Offer Shares is received.

The Managers reserve the right, without further notice, to sell or assume ownership of any unpaid Offer Shares if payment has not been received by the third day after the Payment Date.

Subject to timely payment by the applicant, issuance and delivery of the Offer Shares allocated in the Employee Offering to the applicant’s VPS account is expected to take place on or about 13 June 2012. The Offer Shares allocated in the Employee Offering are expected to be listed and commence trading on Oslo Børs on or about 14 June 2012. In the event that the share capital increase pertaining to the Offering is not registered in the Norwegian Register of Business Enterprises (in Norwegian: Foretaksregisteret) by 13 June 2012, delivery of the Offer Shares to the applicants in the Employee Offering will be postponed until such registration actually takes place and the Listing and commencement of trading of the Offer Shares will be postponed to the trading day on Oslo Børs following such registration.

5.8 MECHANISM OF ALLOCATION In the Institutional Offering, the Board of Directors will determine the allocation of Offer Shares after consultation with the Managers. An important aspect of the allocation principles will be the desire to create an appropriate shareholder structure for the Company. The allocation principles will include, inter alia, customary allocation criteria such as management road show participation and feedback, timeliness of applications, price leadership, relative application size, sector knowledge, perceived investor quality, investors’ time horizon and the objective of establishing a strong, diversified shareholder structure. Priority may therefore be given to investors believed by the Board of Directors to be quality investors and who would contribute to such shareholder structure. The Company and the Managers may also in their sole discretion decide to limit the maximum number of Offer Shares allocated to any investor or to decide not to allocate Offer Shares to an investor. All allocations will be rounded down to the nearest whole Offer Share.

Selvaag Gruppen AS, the Company’s main shareholder has pre-applied for, and will be allocated, Offer Shares at the Offer Price, for a total amount of NOK 165 million, to satisfy the conditions for the repayment of the Company’s NOK 165 million loan from Selvaag Gruppen AS. Svithun Finans AS has pre-applied for, and will be allocated, Offer Shares at the Offer Price, for a total amount of to NOK 40 million, as part of the settlement of the seller’s credit granted by Svithun Finans AS in relation to the Company’s acquisition of the remaining part of Selvaag Bolig Rogaland AS (previously Bo En AS).

In addition to the above, Selvaag Gruppen AS has pre-applied for Offer Shares at the Offer Price for an additional NOK 10 million. Selvaag Gruppen AS may apply for an additional number of Offer Shares and be allocated the number of Offer Shares required in order for Selvaag Gruppen AS to maintain an ownership of minimum 50.1% of the Shares following completion of the Offering and any exercise of the Over-Allotment Option.

In the Retail Offering, allocation will be made solely on a pro rata basis using the VPS’ automated simulation procedures. However, the Company reserves the right, at its discretion, to limit the total number of applicants to whom Offer Shares are allocated. No allocation will be made for a number of Offer Shares representing an aggregate subscription amount of less than NOK 10,000 per applicant. Smaller allocations may be granted a higher relative allocation compared to larger applications, due to the minimum allocation representing an aggregate subscription amount of not less than NOK 10,000. All allocations will be rounded down to the nearest whole Offer Share.

In the Employee Offering, the Company will aim to give, but cannot guarantee, full allocation for all applications received (within the maximum application amount for the Employee Offering). No allocation will be made for a number of Offer Shares representing an aggregate subscription amount of less than NOK 10,000 per applicant (prior to the 20% discount). Smaller allocations may be granted a higher relative allocation compared to larger applications, due to the minimum allocation representing an aggregate subscription amount of not less than NOK 10,000. All allocations will be rounded down to the nearest whole Offer Share.

No Offer Shares have been reserved for any specific national market.

5.9 VPS ACCOUNT To participate in the Offering, each applicant must have a VPS account. The VPS account number must be stated when registering an application through the VPS online application system or on the Retail Application Form for the Retail Offering or on the Employee Application Form for the Employee Offering. VPS accounts can be established with authorised VPS registrars, which can be Norwegian banks, authorised investment firms in Norway and Norwegian branches of credit institutions established within the EEA. However, non-Norwegian investors may use nominee VPS accounts registered in the name of a nominee. The nominee must be authorised by the FSAN. Establishment of VPS accounts requires verification of identification by the relevant VPS registrar in accordance with the Norwegian anti-money laundering legislation (see Section 5.22 “Mandatory anti-money laundering procedures” below).

5.10 OVER-ALLOTMENT OPTION, STABILISATION AND GREENSHOE OPTION In connection with the Offering, an over-allotment option has been established under which the Stabilisation Manager (ABGSC) may, with the consent of the Board, over-allot a number of Shares representing up to 10% of the aggregate final number of Offer Shares (the Additional Shares) as determined following determination of the Offer Price (the “Over-Allotment Option”). Subject to any shortening or extension of the Book-building Period and/or the Application Period, information on whether the Over-Allotment Option has been exercised will be announced on or about 8 June 2012 in accordance with Section 5.14 “Publication of information related to the Offering” below.

The Company has granted the Stabilisation Manager a Greenshoe Option (the “Greenshoe Option”) pursuant to which the Stabilisation Manager may subscribe for up to a number of new Shares equivalent to the number of Additional Shares over-allotted by utilisation of the Over-Allotment Option at a price equal to the final Offer Price in the Offering. The Greenshoe Option may be used only for the purpose of closing out any net short positions created through the Over-Allotment Option. The Greenshoe Option may be exercised on one or more occasions during the 30 day period starting on the first day of trading of the Shares on Oslo Børs. Any exercise of the Greenshoe Option will be promptly announced through the Oslo Børs’ information system.

The main shareholder, Selvaag Gruppen AS, and the Stabilisation Manager have entered into an agreement pursuant to which the Stabilisation Manager in the event the Over-Allotment Option is exercised borrows the number of Shares from Selvaag Gruppen AS required to settle any over-allotments of Additional Shares. To the extent that the Stabilisation Manager has over-allotted Additional Shares in the Offering, the Stabilisation Manager has created a short position in the Shares. The Stabilisation Manager may close out this short position by buying Shares in the open market through the stabilisation activities and/or by exercising all or part of the Greenshoe Option.

The Stabilisation Manager may effectuate transactions with a view of supporting the market price of the Shares at a level higher than what might otherwise prevail, through buying Shares in the open market at prices equal to or lower than the Offer Price. However, there is no obligation on the Stabilisation Manager to do so. Such stabilising activities, if commenced, may be discontinued at any time, and will be brought to an end at the latest 30 calendar days after the first day of trading of the Shares on Oslo Børs. A notice stating that stabilisation

activities may occur will be issued on the first day of trading of the Shares on Oslo Børs. Within one week after the expiry of the 30 day period of price stabilisation, the Stabilisation Manager will publish information as to whether or not price stabilisation activities have been performed.

If price stabilisation activities have been performed, the Stabilisation Manager will announce:  the total number of Shares sold and purchased as part of the stabilisation activities;  the dates on which the stabilisation period began and ended;  the price range within which stabilisation was carried out, as well as the highest, lowest and average price paid for the Shares during the stabilisation period; and  the date at which stabilisation activities last occurred.

Stabilisation activities will be conducted in accordance with Commission Regulation 2273/2003 regarding buy- back programmes and stabilisation of financial instruments, ref. the Norwegian Securities Trading Act 2007 Section 3-12.

It should be noted that stabilisation activities might result in market prices that are higher than would otherwise prevail. Any profit which the Stabilisation Manager may obtain from purchasing Shares at prices below the Offer Price during the 30 days stabilisation period will be for the benefit of the Company.

5.11 SHAREHOLDERS’ RIGHTS CONFERRED BY THE OFFER SHARES The Offer Shares offered in connection with the Offering will in all respects be equal to the existing Shares of the Company once the Offer Shares have been issued and registered with the Norwegian Register of Business Enterprises and the VPS, and hereunder have the right to receive dividends, if any. Each new Share issued in connection with the Offering will confer the right to one vote at general meetings. The share capital increase, and issuance of the Offer Shares, in connection with the Offering (except for any new Shares issued upon exercise of the Greenshoe Option) is expected to be registered with the Norwegian Register of Business Enterprises on or about 13 June 2012.

5.12 LISTING AND TRADING OF OFFER SHARES 5.12.1 Listing on Oslo Børs The Company has on 23 April 2012 applied for listing of its Shares on Oslo Børs. It is expected that the board of directors of Oslo Børs will consider the application on 23 May 2012.

Provided that the board of directors of Oslo Børs on 23 May 2012 approves the Shares for listing and the Offering is completed, the first day of trading of the Shares, including the Offer Shares, on Oslo Børs, is expected to be on or about 14 June 2012. The Shares are expected to trade under the ticker code “SBO”.

The Offer Shares allocated in the Retail and Employee Offerings may not be transferred or traded before they are fully paid and the registration of the share capital increase resulting from the issuance of the Offer Shares in the Norwegian Register of Business Enterprises has occurred. Applicants in the Institutional Offering selling Offer Shares prior to delivery must ensure that payment for such Offer Shares is made no later than on the Payment Date. Accordingly, such applicant who wishes to sell his Offer Shares following confirmed allocation of Offer Shares, but before delivery, must ensure that payment is made in order for such Offer Shares to be delivered in time to the applicant.

Prior to the Listing and the Offering, the Shares have not been listed on any stock exchange or authorised market place, and no application has been filed for listing of the Shares on any stock exchange or authorised market place other than Oslo Børs.

5.13 LOCK-UP AGREEMENTS The Managers have entered into a lock-up agreement with Selvaag Gruppen AS owning approximately 60.8% of the Company prior to the Offering. Under the lock-up agreement, Selvaag Gruppen AS has agreed not to offer, sell, contract or otherwise dispose of any Shares for a period of 12 months following the first day of trading of the Shares on Oslo Børs without the prior written consent of the Managers.

5.14 PUBLICATION OF INFORMATION RELATED TO THE OFFERING In addition to stock exchange notices which will be posted on the Company's website www.selvaagbolig.no, the Company will use Oslo Børs’ information system to publish information relating to the Offering, such as amendments of the Book-building Period/Application Periods if any, the final Offer Price, the final number of Offer Shares and the total amount of the Offering, allocation percentages and the first day of trading of the Shares.

The final number of Offer Shares, the total amount of the Offering and whether the Listing will take place is expected to be published on or about 8 June 2012.

5.15 VPS REGISTRATION The Shares are registered with VPS under the International Securities Identification Number (ISIN) NO 0010612450. The registrar for the Shares is DNB Bank ASA, Registrars Department, Stranden 21, Aker Brygge, N-0021 Oslo, Norway.

5.16 MANAGERS The Managers for the Offering and the Listing are ABG Sundal Collier Norge ASA, Munkedamsveien 45 E, P.O. Box 1444 Vika, N-0115 Oslo, Norway, DNB Markets, a part of DNB Bank ASA, Stranden 21, Aker Brygge, N-0021 Oslo, Norway and Pareto Securities AS, Dronning Mauds gt. 3, P.O. Box 1411 Vika, N-0115 Oslo, Norway.

As of the date of this Prospectus, none of the Managers own any Shares, and no employees employed by the Managers own any Shares.

Advokatfirmaet Selmer DA is acting as legal advisor to the Company. Advokatfirmaet Thommessen AS is acting as Norwegian legal advisor to the Managers.

5.17 PROCEEDS AND EXPENSES The gross proceeds from the Offering to the Company are expected to amount to between NOK 500 million and NOK 800 million, excluding proceeds from any Shares issued pursuant to the Greenshoe Option. Transaction costs and all other directly attributable costs in connection with the Offering and the Listing will be borne by the Company. Applicants in the Offering will not incur any brokerage fees to the Managers directly related to the Offering. The transaction costs for the Company related to the Offering and Listing are estimated to be in the region of NOK 24 million to NOK 40 million given the interval of the Offering size. The net proceeds will be in the region of NOK 476 million to NOK 760 million subject to the final Offering size. For a description of the use of such proceeds, see Section 5.1 “Reasons for the stock exchange listing and the Offering”.

5.18 DILUTION Assuming issuance of the maximum number of Offer Shares (including any Shares issued pursuant to the Greenshoe Option) (34,093,398), the Offering will result in an immediate dilution of approximately 33%. However, the Company’s main shareholder, Selvaag Gruppen AS, who owns approximately 60.8% of the Shares prior to the Offering is expected to maintain an ownership share in the region of 50% following completion of the Offering (including issuance of any Shares pursuant to the Greenshoe Option).

5.19 THE COMPANY’S ISSUED SHARE CAPITAL FOLLOWING THE OFFERING Following completion of the Offering, and assuming issuance of the maximum number of Offer Shares (including any Shares issued pursuant to the Greenshoe Option) (34,093,398), the share capital of the Company will be increased by NOK 68,186,796, to NOK 204,560,388, divided into 102,280,194 Shares with a par value of NOK 2.00 each.

5.20 INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE OFFERING The Managers or their affiliates have provided from time to time, and may in the future provide, investment and commercial banking services to the Company and its affiliates in the ordinary course of business, for which they may have received and may continue to receive customary fees and commissions. The Managers do not intend to disclose the extent of any such investments or transactions other than in accordance with any legal or regulatory obligation to do so. DNB Bank ASA has provided debt financing to the Group as further described in section 12.5.1 “Overview of the debt financing of the Selvaag Bolig Group”.

Otherwise, the Company is not familiar with any interest of natural and legal persons involved in the Offering.

5.21 JURISDICTION AND CHOICE OF LAW The Offering and this Prospectus are subject to Norwegian law, unless otherwise indicated herein. Any dispute arising in respect of the Offering or this Prospectus is subject to the exclusive jurisdiction of Oslo District Court.

5.22 MANDATORY ANTI-MONEY LAUNDERING PROCEDURES The Offering is subject to the Norwegian Money Laundering Act No. 11 of 6 March 2009 and the Norwegian Money Laundering Regulations No. 302 of 13 March 2009 (collectively the “Anti-Money Laundering Legislation”). All applicants who are not registered as existing customers with one of the Managers must verify their identity to one of the Managers in accordance with the requirements of the Anti-Money Laundering Legislation, unless an exemption is available. Applicants who have designated an existing Norwegian bank account and an existing VPS-account on the application form are exempted, provided the aggregate subscription price is less than NOK 100,000, unless verification of identity is requested by one of the Managers. The verification of identification must be completed prior to the end of the Book-building Period/Application Periods. Investors who have not completed the required verification of identification will not be allocated any Offer Shares.

6. PRESENTATION OF THE COMPANY Selvaag Bolig ASA is a public limited liability company (Norwegian: “allmennaksjeselskap”) incorporated on 11 April 2008 as a private limited company, by Selvaag Gruppen as founder, and has later been converted to a public limited company regulated by the Norwegian Public Limited Companies Act and the laws of Norway. The Company is registered with the Norwegian Register of Business Enterprises with organisation number 992 587 776. The head office and registered office of Selvaag Bolig is Lørenvangen 22, 0580 Oslo, Norway. The mailing address of the Company is PB 544 Økern, 0512 Oslo, Norway and the telephone number is +47 02224. The Company’s website is www.selvaagbolig.no and the contact e-mail is [email protected]. The Company is the parent company of the Group as further described under Section 6.2 “Legal structure of the Selvaag Bolig Group”. The operational activities of the Group are performed through subsidiaries. The Group employs approximately 87 persons as of the date of this Prospectus, whereof 42 are employed by the Company and 45 are employed by subsidiaries.

6.1 COMPANY HISTORY 6.1.1 Selvaag until incorporation of Selvaag Bolig in 2008 In 1936, the founder of Selvaag, Olav Selvaag started his career as a building engineer in Fr. Ringnes Entreprenør, an Oslo-based residential construction company. In 1938 Olav Selvaag and Fredrik Ringnes became partners, and in 1945 the company changed its name to Ringnes & Selvaag, with Olav Selvaag as the new CEO.

In the post-war years, Norway experienced a large undersupply of residential units. With an industrial mindset based on new construction methods and standardization of area efficient and affordable housing, Olav Selvaag claimed he could build a house using only one third of the amount of materials and man-hours of what the current building regulations required. Olav Selvaag was challenged to prove his statement, and in 1948 he built The Ekeberg House, the first modern Norwegian wooden house in a light timber frame. The Ekeberg House was constructed using one third of the resources that would be required to build a similar house at the time. On the first day after completion, 15,000 people came to see the house and more than 8,000 people signalled their interest in buying it. Olav Selvaag’s new construction methods triggered a debate about building regulations, resulting in a change of the regulations in a direction that permitted habitation at The Ekeberg House, and allowed Olav Selvaag to proceed with the construction of the new type of residences.

In 1952, Ringnes & Selvaag applied the new construction methods in a larger scale and the first 124 residential units were completed at Bestum, a residential area south of Oslo.

By 1953, Olav Selvaag had assumed the sole ownership of Ringnes & Selvaag, and the entity was renamed to A/S Selvaagbygg. In the same year the company completed the first 326 units of a large residential development project at Veitvedt, a suburb north of Oslo. When the project was completed five years later, Selvaag had constructed more than 1,500 residential units. In addition, Selvaag built a shopping centre in the middle of the residential area, the first of its kind in Norway and the largest in Northern Europe at the time.

During the 1960’s, 1970’s and 1980’s, Selvaag continued to apply new concepts in their residential construction. In 1964, the terraced housing concept made it possible to use hillside terrain for residential construction. Later, in 1969, Selvaag embarked on one of its biggest endeavours with the construction of a large number of terraced apartment buildings at Vestli in Oslo. The facades of the terraced apartment buildings were formed to allow every apartment to have an open terrace that was not covered by the terrace in the apartment above. Parking was constructed underneath the buildings. By 1976, Selvaag had constructed nearly 4,000 terraced block apartments and 500 townhouses at Vestli.

Selvaag has over the years differentiated itself from competitors by being an innovative and fully integrated residential developer controlling the entire value chain from acquisition of the land plot to the sale of the completed units. Selvaag completed several residential development projects in the 1990’s; with one example being the urban development project Colosseum Park at Majorstua, close to the city centre of Oslo.

In 1999, Selvaag acquired a land plot at Løren, north of the Oslo city centre, with a development potential of 1,800 residential units. “Løren leir”, a former military camp, constituted the bulk of the land. The project has demonstrated Selvaag’s ability to undertake large urban development encompassing housing, service, commercial and recreational areas. In 1999, Selvaag started exploring the use of modules and has over the years industrialised and improved the use of modules in residential development both in terms of quality, process and cost. As a result of this knowledge, Selvaag Bolig now employs modules successfully as an alternative to on-site building in many projects.

A few years later in 2001, Selvaag originated the plans for the development of Tjuvholmen, historically characterised as an industrial port located close to Aker Brygge in the Oslo city centre. As part of The Fjord City Plan (a development plan for the seafront city areas in Oslo), the Oslo municipality organised a tender for the development of the area in 2002. Selvaag’s contribution was a planning proposal called “Utsyn”, a joint venture with the Norwegian real estate developer Aspelin Ramm. The proposal became the chosen alternative, and the Tjuvholmen project was established in 2002 as a limited partnership (Norwegian: “kommandittselskap”) between the Selvaag Group (60% ownership) and Aspelin Ramm (40%). A separate project organisation was established outside the Selvaag Group for the development of Tjuvholmen.

In the last eight years, Selvaag has taken on financial investors on a number of residential development projects as a mean of project financing. By bringing in partners, Selvaag could reduce project risks by project and geographical diversification, while achieving economies of scale in the residential development business. Selvaag completed a total of 11 development projects with partners between 2004 and 2007, mainly in the Greater Oslo area.

In 2004, Selvaag launched the new residential concept Plussbolig. The Plussbolig concept aims to combine high standard residences at attractive locations with an extended service concept. The first Plussbolig apartments were delivered in 2006 when the project Hovedgårdstunet in Kristiansand, in the south of Norway, was completed. The company has later developed Plussbolig apartments in Oslo, Stavanger and Drammen in Norway. The Plussbolig projects have been developed by the limited partnership Selvaag Pluss Eiendom KS (“SPE KS”).

6.1.2 Incorporation of Selvaag Bolig in 2008 On 31 August 2008, the Selvaag Group’s residential development business was separated from AS Selvaagbygg and continued as a standalone sub-group under the name Selvaag Bolig. Simultaneously, Selvaag Pluss AS and Selvaag Hus AS (the latter later renamed Selvaag Bolig Modulbygg AS) were separated from Selvaag Gruppen AS and AS Selvaagbygg respectively, and continued by Selvaag Bolig. The separations were designed to preserve the full integrity of Selvaag Bolig and its operations. Following the incorporation of the sub-group, Selvaag transferred to Selvaag Bolig all assets, rights and liabilities that related to Selvaag Bolig’s operations. As a key principle from the date of the separation, all transactions between Selvaag (e.g. Selvaagbygg, the residential contractor business) and Selvaag Bolig have been on a commercial, arm’s length basis.

6.1.3 Selvaag Bolig’s operations in Spain and Sweden The Company entered into the Spanish real estate market in 2004 with the objective of building Selvaag Pluss residential units targeting Norwegian residents seeking a residence in a warmer climate in the south of Europe. Selvaag Bolig has later terminated its focus on the Spanish market, among others due to the economic situation in Spain, and is in the process of withdrawing from the market. The Company’s remaining exposure is a single land plot in Alfaz del Sol and 30 rental apartments. Selvaag Bolig also has some obligations with regards to the operations of the Selvaag Bolig Plussbolig concept in the same location.

Selvaag Bolig entered the Swedish real estate market in 2010 through a joint venture with Veidekke Bostad AB. The two companies jointly control two land plots for development centrally located in Stockholm. See Section 6.4 “Company strategy, concept and goals” and Section 6.9.2 “Location of portfolio of land” for further information.

6.1.4 Merger with Hansa Property Group AS in 2011 Hansa Property Group AS (“Hansa Property”) was incorporated in June 2007 and was established as a residential developer the same year through the acquisition of four major development portfolios in Lørenskog (north of Oslo), Stavanger, Bergen and Tønsberg, and was subsequently listed on the Norwegian Over-The- Counter (OTC) market. During 2008 the development portfolio of Hansa Property was expanded with the acquisition of five projects in the Oslo region from Selvaag Bolig.

At the date of the merger, Hansa Property had approximately 400,000 sqm of land for development, of which more than 80% comprised residential projects.

Hansa Property has since January 2010 been managed by Selvaag Bolig under a management agreement, where Selvaag Bolig has been responsible for the corporate management and operations of Hansa Property. Selvaag Bolig owned at the time of the merger 30.2% of the shares in Hansa Property.

On 1 April 2011, Selvaag Bolig and Hansa Property revealed the plans of a merger between the two residential developers. The merger was approved 10 June 2011 by the general meetings of the Company and Hansa Property and completed on 23 August 2011 (the “Merger”). Hansa Property ceased its listing on OTC from and including 24 August 2011 and the shareholders of Hansa Property became shareholders in Selvaag Bolig.

6.1.5 Private placement directed to owners of SPE KS in 2011 On 23 August 2011, the Company carried out a private placement directed to the owners in the limited partnership SPE KS, with a consideration of partly cash and partly contribution in kind (the “Private Placement”). Following the Private Placement, the owners in SPE KS became shareholders in Selvaag Bolig. Selvaag Bolig controlled 33.33 % of the ownership interests in SPE KS through its wholly-owned subsidiary Selvaag Pluss AS prior to the Private Placement.

6.1.6 Acquisition of remaining part of Bo En AS (Selvaag Bolig Rogaland AS) As a result of the Merger, Selvaag Bolig became the owner of 62.5% of the shares in Bo En AS, a residential housing developer in the Stavanger region. On 25 November 2011 Selvaag Bolig bought the remaining 37.5% of Bo En AS from Svithun Finans AS. Bo En AS, which now is a wholly-owned subsidiary of Selvaag Bolig, recently changed its name to Selvaag Bolig Rogaland AS.

According to the share purchase agreement between the Company and Svithun Finans AS dated 4 November 2011, the Company has been granted a seller credit for NOK 50 million of the total purchase price of NOK 170 million. According to the agreement, NOK 10 million shall be settled in cash at the earliest of (i) 30 June 2012

and (ii) 14 days after the first share capital increase in the Company after the closing of the Bo En AS purchase has been registered in the Norwegian Register of Business Enterprises.

The remaining NOK 40 million shall be settled at the earlier of (i) the first share capital increase in the Company after the closing of the Bo En AS purchase or (ii) in connection with the Listing. The remaining NOK 40 million shall, in the sole discretion of the Company, either be settled in cash or by issue of shares in the Company with a subscription price equal to the subscription price in the share capital increase or the Offering.

If the Company does not carry out a share capital increase or completes the Listing during 2012, and the Company wishes to settle the remaining NOK 40 million by issue of shares in the Company, such shares shall be issued prior to 31 December 2012. The number of Shares to be issued shall be calculated in accordance with the market value of the Company at the date of the agreement adjusted for any changes in the Oslo Børs Benchmark Index from the date of the agreement until the issuance of the Shares. Based on equity valuation, the market value of the Company was estimated to NOK 2,423 million at the date of the agreement.

If such Shares are not registered on the VPS account of Svithun Finans AS prior to 31 December 2012, the Company shall settle the remaining NOK 40 million by immediate cash payment.

Irrespectively of the above, the remaining NOK 40 million will become due and payable in cash in the event that the Company does not complete a listing and Selvaag Gruppen AS reduces the ownership percentage to less than 50% of the Company by a sale of shares.

In addition to the seller’s credit, the Company and Svithun Finans AS have agreed that in the event of a sale of a property in Sola to the municipality of Sola from Selvaag Bolig Rogaland AS, Svithun Finans AS shall be entitled to 37.5% of the total net proceeds from the sale. The Company and Svithun Finans AS have also agreed that Svithun Finans AS shall have an option to purchase 37.5% of a property in Sola in the event Selvaag Bolig Rogaland AS purchases the property from the current owner. The purchase price shall be equal to 37.5% of the market value of the property. If the Company and Svithun Finans AS fail to reach an agreement on the dividing of the property, each of the parties may demand that the property is transferred to a single purpose company of which Svithun Finans AS shall purchase and own 37.5% of the shares. The two above mentioned agreements do not concern the development of the areas described in 6.10.4.

The share capital increase in the amount of approximately NOK 40 million by way of conversion of the seller’s credit from Svithun Finans AS to shares will be completed as part of the Offering. Svithun Finans AS has on 15 May 2012 pre-applied for Offer Shares at the Offer Price, for a total amount equivalent to NOK 40 million as part of the Offering.

The company formerly known as Bo En AS is hereinafter referred to as Selvaag Bolig Rogaland AS.

6.2 LEGAL STRUCTURE OF THE SELVAAG BOLIG GROUP Selvaag Bolig ASA is an operational company and the parent company in the Group. The Group consists of close to 100 subsidiaries or affiliated companies. The substantial number of legal entities is due to each real estate project being established as a special purpose legal entity. Such structures are common in the real estate industry. The majority of the legal entities are Norwegian private limited companies, except for one company in Sweden and five companies in Spain. A condensed legal structure of the Selvaag Bolig is shown in the chart below:

Figure 6.1: Condensed legal structure of the Company

Note: The above legal structure only includes what is considered the main legal entities of the Selvaag Bolig Group.

The table below contains a list of the Company’s most significant subsidiaries (subsidiaries which is considered by the Company to be likely to have a significant effect on the assessment of the assets and liabilities, the financial position and/or the profits and losses of the Group).

Company name Country of incorporation and Percentage of shares owned by address Selvaag Bolig Selvaag Modulbygg AS Norway – Lørenvangen 22, 100% N-0580 Oslo, Norway Selvaag Pluss AS Norway – Lørenvangen 22, 100% N-0580 Oslo, Norway Selvaag Pluss Service AS Norway – Lørenvangen 22, 100% N-0580 Oslo, Norway Selvaag Pluss Eiendom KS Norway – Lørenvangen 22, 100% N-0580 Oslo, Norway Selvaag Boligmegling AS Norway – Bolette Brygge 3. N- 100% 0250 Oslo, Norway Selvaag Eiendomsoppgjør AS Norway – Lørenvangen 22, 100% N-0580 Oslo, Norway Selvaag Boligutleie AS Norway – Bolette Brygge 3. N- 100% 0250 Oslo, Norway Selvaag Bolig Øst AS Norway – Lørenvangen 22, 100% N-0580 Oslo, Norway Selvaag Bolig Rogaland AS Norway – Kongsgata 10, 100% N-4005 Stavanger, Norway

6.3 BUSINESS SEGMENTS Selvaag Bolig is a residential real estate developer with three supporting business units. The Company’s operations consist mainly of wholly owned residential development projects, but also partly owned residential development projects, some in joint ventures with external investors. The Company’s supporting businesses are: i) real estate brokerage, rentals and settlement through the business unit Meglerhuset Selvaag, ii) modular homes through Selvaag Bolig Modulbygg AS (“Selvaag Bolig Modulbygg”) and iii) service offering in connection with the Selvaag Bolig Plussbolig concept through Selvaag Pluss Service AS (“Selvaag Pluss Service”).

Figure 6.2: Selvaag Bolig operational overview

Residential real estate development Supporting businesses

Wholly owned projects Joint ventures Selvaag Bolig Modulbygg Partly owned real estate Modular based construction of Fully integrated residential real estate development development projects in residential units Norway and Sweden Meglerhuset Selvaag Residential project sales, real estate brokerage and rentals

Selvaag Pluss Service Service offering in connection to Selvaag Pluss concept

6.3.1 Residential real estate development Selvaag Bolig’s primary focus and main source of revenue going forward is residential development. The Company acquires and develops new residential land plots, and controls the entire value chain from acquisition of the land plots to the sale and delivery of the residential units. The Company has a land portfolio on which it can develop more than 8,700 residential units (as per 31 March 2012). Of these, approximately 6,000 can be developed in the Greater Oslo Area and about 2,600 in other parts of Norway. The land portfolio in other countries totals approximately 100 residential units to be developed. In addition, the Company owns land with an area of approximately 109,000 sqm zoned for commercial development. Selvaag Bolig’s real estate development projects are described in Section 6.9 “The real estate development projects”. The Company also has a number of commercial yielding assets, which are described in 6.3.5 “Commercial property”.

Figure 6.3: The Company’s residential development value chain Supporting businesses

Selvaag Bolig does not have a full in-house construction unit, but employs the most competitive residential contractor for each project. This provides Selvaag Bolig with a large degree of flexibility in choosing the best construction supplier for each individual project, enables a smaller organisation and hence a lower cost base and increased flexibility in terms of changes in market demand. In addition, the use of third party construction suppliers, as opposed to an in-house construction unit, further reduces the amount of capital tied up during the construction phase. For selected projects, Selvaag Bolig use modular based construction from Selvaag Bolig Modulbygg, see Section 6.3.2 “Selvaag Bolig Modulbygg – Modules”.

6.3.2 Selvaag Bolig Modulbygg – Modules Selvaag Bolig Modulbygg is a residential construction management company focused on the construction of cost efficient modular based residences. The value chain of Selvaag Bolig Modulbygg comprises design, production optimisation, logistics and international procurement of residential modules. Selvaag Bolig started exploring the use of modules for residential construction in 1999, and has over the years industrialised and improved the use of modules in residential development both in terms of quality, time, process and cost.

Selvaag Bolig Modulbygg does not manufacture modules in-house, but contracts the production to subcontractors by offering turnkey contracts to the customer. The current sub-contractors are located in the Baltic countries and in Poland and are selected based on a careful review of quality, capacity, timely delivery and price.

Having in-house modular construction knowledge represents several advantages for Selvaag Bolig. Modular production involves shorter construction time, higher quality control and higher accuracy on deliveries, both in terms of quality and time. As a result of Selvaag Bolig Modulbygg’s expertise in procurement and logistics within modular production, the use of modules contribute to both margin expansion and access to additional construction capacity as construction takes place outside the markets in which Selvaag Bolig operates. The modules are designed by Selvaag Bolig, constructed in the Baltic countries or in Poland by a third party supplier, and shipped to the building site by Selvaag Bolig. Representatives of the Baltic or Polish constructor are responsible for the assembling of the modules at the building site. Due to long history of optimising the quality of modular based homes, as well as more than a decade of close co-operation with the main sub-supplier, Selvaag Bolig now employs modules successfully as an alternative to on-site building in many projects.

Modules are used both for the Start and the Hjem residential living concepts (see Section 6.4.1 “Strategy and business concept”). Modules are generally used for one to four storey houses, but may also be used on buildings with up to six storeys. Selvaag Bolig delivers modules also to external residential real estate developers in situations of excess capacity, if considered profitable.

Since Selvaag Bolig Modulbygg was founded, Selvaag Bolig Modulbygg has experienced a strong build-up in its project backlog, which is expected to continue due to increased use of module based construction. The projects currently using modular construction are located in the Greater Oslo area and in Stavanger.

The earnings of Modulbygg will change significantly going forward due to a change of accounting treatment. See Section 10.4 “Segment information” for further information.

6.3.3 Meglerhuset Selvaag – Estate Agent Meglerhuset Selvaag is an estate agency that has specialised in the sale and letting of residential property throughout the Oslo region. Meglerhuset Selvaag provides a complete range of estate agent services, including property resale and letting and is used as a real estate broker for Selvaag Bolig’s projects in the Oslo and Stavanger area. Selvaag Bolig leverages Meglerhuset Selvaag’s market intelligence to identify customer needs and tailor residential concepts to meet market demand. The in-house real estate broker further contributes to increased brand awareness.

Meglerhuset Selvaag’s brokerage offices are located at Tjuvholmen and Løren in Oslo. According to Econ Pöyry, a consultancy and research company, Meglerhuset Selvaag is the 4th largest broker of new residences in the eastern part of Norway with a total of 849 residences in the project portfolio (Source: Econ – Nye Boliger, no 2 – 2012). Meglerhuset Selvaag comprises of the companies Selvaag Boligmegling AS, Selvaag Eiendomsoppgjør AS and Selvaag Boligutleie AS and operates ordinary real estate brokerage business (projects and second hand apartments), settlement functions and rental business, respectively, both to external and internal projects and clients.

6.3.4 Selvaag Pluss Service It is Selvaag Bolig’s own subsidiary Selvaag Pluss Service AS that provides services and manages the Plussbolig properties. The company provides residents with concierge services e.g. housekeeping, catering and practical services for a comfortable and easy living. All Plussbolig properties have common service areas with a concierge employed by Selvaag Pluss Service. Selvaag Pluss Service develops existing and new services in close consultation with the residents and the properties’ supervisory boards. The service operations are kept in- house to ensure high quality services in order to tailor the services as a unique selling proposition for Plussbolig and to maintain the Plussbolig concept as a viable brand.

6.3.5 Commercial property The Company’s primary focus is on residential development, however limited commercial real estate development in connection with residential projects will be pursued if deemed profitable and supports residential real estate development. Selvaag Bolig owns approximately 74,000 sqm yielding commercial real estate with current annual revenue of NOK 41.7 million, as well as approximately 109,000 sqm commercial areas for development. Selvaag Bolig’s yielding commercial real estate assets are summarized in figure 6.4 below. The commercial development areas are summed up in table 6.1 in section 6.10.1:

Figure 6.4: Yielding commercial real estate owned by Selvaag Bolig.

Selvaag Area Rental Name of Average lease Main Location: Bolig Segment (Sqm revenues p.a. project: term (years) tenant(s) ownership: T-BTA) (NOKm) Kaldnes NAV Tønsberg 100 % Office 2,587 5.4 10.0 Kontorbygg 11 Vestfold

Kaldnes Tønsberg 100 % Office 365 0.6 2.8 Spir Kontorbygg 2 Kaldnes Jarlsø and Tønsberg 100 % Office 730 0.8 0.6 Kontorbygg 3 Scanship Stord Office, Wärtsila Stord 66 % 32,6022 18.7 1.0 Industribygg industrial and Aker Maria Dehlis Office, Oslo 100 % 7,500 7.5 0.5 Astrup vei 40 industrial Various Lørenskog Vestparken3 100 % Office 1,512 2.0 1.0 tenants Office, Lørenskog Skårer Bolig 100 % 40,000 13.0 4 3.0 Nor Cargo logistics Total 85.296 48.0 Total (adj. for JV partners 74.211 41.7 ownership) 1 The building is currently under construction and will be completed in Q2 2012. The Company has signed an agreement to sell the building for NOK 77 million. The deal will be closed when the building is completed and the revenue will be reported in Q2 2012 2 Offices of 9,382 sqm, sub-let indoor areas of 11,550 sqm and outdoor areas of 11,670 sqm 3 The Company has signed a letter of intent to sell the property. The sale is expected to be completed in Q2/Q3 2012 4 The commercial areas will be redeveloped to residential areas from 2015

6.4 COMPANY STRATEGY, CONCEPT AND GOALS 6.4.1 Strategy and business concept Selvaag Bolig is a residential developer that provides different housing concepts to suit aspirations of different households in and around main cities in Norway and over time in selected cities in Scandinavia. The Company’s prime focus is the Greater Oslo area, Stavanger, Bergen and Stockholm, areas with large and growing populations. Projects in other selected cities in the Scandinavian countries will be evaluated by Selvaag Bolig based on the attractiveness of the risk and return profile.

Selvaag Bolig has introduced the following three well defined residential living concepts:

Selvaag Start – A first step up the housing ladder The Start concept targets first time home buyers. Selvaag Start apartments are often located in the outskirts of major cities where the cost of land is lower than in central locations. The concept is based on a “no frills” standard and efficient use of space, making it possible for buyers to enter the housing market at an affordable price. Modular based constructions are used to a large extent.

Selvaag Hjem – Quality homes at affordable prices Selvaag Hjem apartments, terraced and detached houses are often located in and around major cities. The residences carry a moderate cost of land and Selvaag Bolig applies well-known standardized building concepts to deliver units that are affordable for most segments of the market. A combination of modular based and on-site construction is used.

Selvaag Pluss – Targets house owners seeking central location, high standard and personal service Selvaag Pluss is a concept targeting residential home owners who value comfort and convenience. Selvaag Bolig aims to meet the needs of this segment by constructing high standard residences with well-found common areas combined with a service concept. Selvaag Pluss apartments are often located in attractive areas in major cities, and based on on-site construction.

The cost of land, construction costs, sales price and hence margin received vary between the three concepts. The Selvaag Start concept is characterized by the lowest sales price per square meter while Selvaag Pluss generally commands a premium. The experience Selvaag Bolig has acquired through many years of residential developments enables the company to adapt the right concepts and concept mixes to the various projects to ensure profit maximisation.

6.4.2 Goal Selvaag Bolig’s goal is to deliver attractive returns to its shareholders through profitable operations and by growing its position as one of the leading residential developers in Norway and over time in selected cities in the Scandinavian region. The Company seeks to develop, sell and deliver affordable and attractive residential housing units to the market. The Company’s target is to deliver 1,500 residential housing units per year.

6.4.3 Financing and return strategy The Company aims to finance the purchase of land with approximately 50% debt and approximately 50% equity. Payment of land generally takes place when zoning is completed. The land debt is converted to construction loan as soon as pre-sale of 50-60% of the residential units is achieved. A pre-tax profit margin of 12% or higher is targeted by the Company for all new projects. The expected pre-tax profit margin for projects using modular construction is generally 3 - 4% higher than for on-site construction. In order to maximise shareholder return as well as to make the Selvaag Bolig share an attractive investment for investors, the Company has an objective to pay annual dividends in the region of 50% of after-tax profits, adjusted for non-cash generating items. However, the dividend level is subject to Selvaag Bolig’s expansion opportunities, liquidity and overall financial situation.

6.4.4 Shareholder strategy Selvaag Bolig offers strong exposure towards residential development projects in and around the main cities in Norway and plan over time to expand to selected cities in Scandinavia. The Company has a strategy to work towards liquidity in its shares. Selvaag Bolig will seek to keep the public and the investment community updated with timely and relevant information about the Company’s performance, financials, activities and special events in order to ensure that the pricing of the Company reflects the underlying values and future profit expectations to the greatest extent possible.

6.5 VALUE DRIVERS Being a residential development company, the main value drivers for Selvaag Bolig are the sale of residential units and the development margin, i.e. the difference between the sales price and the total cost. Selvaag Bolig has identified the following key value drivers:

Sale of residential units: Demand for the residential units in the long term is dependent on demographic factors (e.g. population growth, age distribution and the number of persons per household), moving patterns and development in wealth. Whilst the two latter affects obsolescence of residential units, demographic factors determines the required growth in supply in order to keep up with population growth. In the short term, demand is dependent on the economic cycle (e.g. development in unemployment, wages, housing prices, etc.) and development in interest rates, which are linked to the living expenses.

Residential sales prices: Prices depend on the balance between residential housing demand and supply. The quantity of supply is determined by the market participants’ expected profitability, capacity constraints and availability of projects and land.

Total costs: The cost of input factors such as land, labour, use of residential contractors, as well as financing costs, tend to fluctuate over time.

Time: Completion of projects determines the timing of the cash flow. The planning process, reaching a minimum required level of presales (due to risk mitigation or financing requirement), negotiating construction contracts and the actual construction are all factors which have major impact on the timing of the cash flow.

Management: The complex nature of development projects puts increased importance on having an experienced and dedicated management team. A good management will be able to initiate, monitor and complete profitable projects with acceptable risks, by ensuring quality, timely execution and cost control.

Brand recognition and perception: Residential units are not a commodity, i.e. the consumer value reliability and a proven ability to deliver quality.

6.6 ZONING AND PROPERTY DEVELOPMENT IN NORWAY

A real estate development project can be divided into different phases. Typically, comprehensive development projects are initiated by the purchase of land with or without an in place local plan. Before construction starts, the site, in addition to a local zoning, normally need an approved development plan and a framework permit. Knowhow and experience from the zoning processes is important to limit the accrued time before the projects are ready for pre-sale. Selvaag Bolig generally targets 50-60% pre-sale prior to construction start. The Company secures 10%3 of sales value when the sale is booked and the remaining 90% of sales value when the property is delivered. The construction period normally lasts 12 to 24 months, depending on the complexity and size of the project. Large development projects may be divided into several construction phases, resulting in a development period of several years.

Figure 6.5: Illustration of the zoning process for a Norwegian development project

1) Municipal 2) Local zoning 3) Development 4) Framework 5) Start up  6) sector plan plan plan permit license Construction 6-9 MONTHS 4-6 MONTHS 3-4 MONTHS 1 MONTH 12-24 MONTHS Generally a The property must In some cases a Regulates Last check – may property must be be part of a local development plan technical aspects be obtained part of a plan for the property and verifies that together with municipal sector has to be prepared conditions for framework permit plan development are fulfilled Political process Regulates volumes May be avoided if Administrative Administrative handled by and implies a right local plan includes process – handled process – handled municipal to build out on illustrations and by agency for by agency for council and in certain conditions sufficient details planning and planning and some cases (e.g. technical and building services building services central social Government infrastructure) Political process – Regulates placing handled by of buildings and municipal council “visual expression” Political process – handled by committee

Selvaag Bolig has approximately 35 real estate development projects in Norway. For the majority of the projects the zoning is completed and construction can take place within 1-3 years. See Section 6.9 “The real estate development projects” for further information.

While continuing to develop its current real estate portfolio, the Company will in parallel search for new attractive land plots. Over time, the Company will have several projects in all phases of the development process and there will at most times be projects in the final phase that will generate income for the Company. The cash flow of a typical residential real estate project can be summarized as shown in figure 6.6 below:

Figure 6.6: Illustration of real estate financing and cash flow of a typical Selvaag Bolig development project

1) Develop 2) Acquire and 3) Project design 4) Marketing 5) Construction 6) Delivery and service market concept refine land for and sale (Pluss) and products development 6-36 MONTHS 6-12 MONTHS 3-9 MONTHS 12-24 MONTHS CASH FLOW CASH FLOW CASH FLOW CASH FLOW CASH FLOW CASH FLOW - Project - Payment of - Project + Sale of - Contractor + Delivery of residential development purchased land development costs residential units engaged and units – 90% of value paid costs when zoned incl. marketing and and 10% of construction started sales costs value paid given 50-60% pre- sale - Monthly payment - Construction loan repaid based on completion + Owner get equity contribution and project gross margin

3 Funds become at Selvaag Bolig’s disposal when the property is delivered

FINANCING FINANCING 50% equity and Land debt financing 50% debt converted to construction loan given 50-60% pre- sale Combined land Construction 100% and building loans debt financed entered to secure Land 50% equity predictability with and 50% debt regards to financing

6.7 SALES AND CONSTRUCTION STARTS The Company has over the last couple of years initiated few construction starts due to weak financial markets and hence weak housing demand. Few development projects were therefore realised and delivered during 2010 and 2011. As the macro-economic conditions and housing demand is improving, Selvaag Bolig is well positioned with a broad portfolio of land available for development. The Company is currently in a ramp up phase with an increasing number of units under construction.

Figure 6.7: Selvaag Bolig key operating figures

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 No. of residential 50 97 40 66 67 120 79 122 87 170 247 145 244 units sold No. of housing - - - - - 116 - 238 529 49 100 98 188 starts Number of residential - 83 58 63 - - - 20 16 - - 80 74 units completed

Number of

residential 204 121 63 - - 116 116 334 847 895 995 1,014 1,128 units under

construction

% sold of residential units under 28% 70% 100% - - 61% 73% 30% 48% 59% 71% 72% 79% construction Number of unsold completed 73 54 91 63 46 37 31 22 18 15 12 14 14 residential units Order book (NOK 2,853 2,919 3,117 3,243 3,598 million)1 Note: All numbers are adjusted for Selvaag Bolig’s ownership in joint ventures 1 Sales value of residential units under construction

6.8 TREND INFORMATION The Company has not experienced any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on the Company’s prospects for the current financial year. Please see Section 6 “Presentation of the Company”, Section 7 “Market overview”, Section 10 “Operating and financial information” and Section 13 “Shares and share capital” for general information about recent trends in the Company’s business and relevant markets.

6.9 DEPENDENCE ON RESEARCH AND DEVELOPMENT, PATENTS AND LICENCES In the opinion of the Group, its business is not materially dependent on any research and development, or particular patents or licenses.

6.10 THE REAL ESTATE DEVELOPMENT PROJECTS 6.10.1 Overview The Company’s residential portfolio has an expected development potential of approximately 8,700 residential units, of which the majority can be developed within a five year period. In addition, Selvaag Bolig owns commercial areas of about 109,000 sqm.

Table 6.1: Overview of Selvaag Bolig’s areas for development as at 31 March 2012

Selvaag Bolig Residential Project Location Projects ownership Residential1 Commercial2 units period3 Greater Oslo4 Løren 2B5 96.5% 12,665 783 184 2010 - 2013 Løren 5 100.0% 35,673 1,488 449 2010 - 2017 Løren Start 100.0% 4,435 88 2011 - 2013 Bjørnåsen Nord 100.0% 10,995 92 2012 - 2015 Bjørnåsen Syd 100.0% 19,719 293 2011 - 2015 Fernanda Nissen 100.0% 5,048 73 2012 - 2014 Ormerud 100.0% 3,360 28 2013 - 2014 Skullerud 100.0% 3,308 30 2011 - 2013 Kornmoenga 100.0% 20,986 247 2010 - 2014 Lillohøyden6 100.0% 35,600 509 2012 - 2016 Mortensrudhøyden 100.0% 19,576 252 2010 - 2015 Landås7 100.0% 24,400 293 2013 - 2018 Skaarerødegaarden 100.0% 85,201 40,000 1,041 2011 - 2022 Lørenskog Sentrum Vest 100.0% 35,200 503 2013 - 2025 Vestparken 100.0% 14,336 213 2010 - 2016 Skårer Bolig 100.0% 50,000 25,000 714 2016 - 2025 Bekkebakken 100.0% 5,063 80 2011 - 2013 Utsikten 100.0% 4,851 34 2010 - 2016 Marie Dehlis vei 40 100.0% 9,000 2014 - 2016 Moss Glassverk 100.0% 14,380 208 2011 - 2018 Kaldnes Brygge 100.0% 59,396 15,619 659 2010 - 2027 Sandvika Boligutvikling 37.0% 7,845 115 2010 - 2012 Stavanger Lervig Brygge 100.0% 60,747 849 2010 - 2022 Aase Gård 100.0% 25,200 242 2012 - 2017 Jaasund 100.0% 38,355 436 2010 - 2018 Bo Emmaus7 50.0% 3,000 25 2012 - 2014 Bergen Nyhavn 100.0% 11,929 1,035 150 2011 - 2014 Nesttun 75.0% 12,148 145 2010 - 2013 Trondheim Lade Allé 100.0% 16,240 216 2012 - 2016 Tromsø Strandkanten 100.0% 17,430 221 2012 - 2015 Kristiansand Tangen 50.0% 9,832 121 2010 - 2013 Stord Stord Industribygg 66.0% 35,000 25,000 400 TBD Stockholm Sädesärlan7 50.0% 7,441 80 2012 - 2014 Lövholmen7 50.0% 6,412 80 2015 - 2017 Alfaz Del Sol Alfaz del Sol 50.0% 7,000 100 2019 - 2021

Total 722,771 117,925 9,151

Total (adjusted for JV partners' ownership) 685,606 109,398 8,709

Notes: 1) Residential development projects are denoted in S-BRA sqm 2) Commercial development projects are denoted in S-BRA sqm 3) The project period spans the period from sales start to expected delivery of the last unit in the project 4) The Greater Oslo area includes Oslo, Akershus, Buskerud, Vestfold and Østfold 5) The project Løren 2B is guaranteed 70% of the result by the minority owner, which implies an unequal division of the result compared to the ownership. The guarantee cost is classified as profit sharing and not as a guarantee cost in the project 6) Selvaag Bolig has entered into an agreement to sell 18,100 sqm of the project for a consideration of NOK 212.5 million. Delivery is expected to take place during Q4 2012 7) The company has entered agreements to pay for the development areas at Landås, Bo Emmaus, Sädesärlan and Lövholmen at a later stage. Further details are provided in 12.6

Selvaag Bolig has an operational target of 1,500 delivered residential units per year. The Company had no project starts in 2009 caused by financial crisis and weak housing demand, and hence the number of residential units delivered in 2011 was low. The number of construction starts picked up from 2010 and onwards, driven by improved macroeconomic conditions and increased housing demand. The Company’s construction starts, sales starts and expected deliveries from 2009 to the current date is summarized in Section 6.7 “Sales and construction starts”.

6.10.2 Location of portfolio of land Selvaag Bolig’s development portfolio is located in and around the major cities in Norway and in Stockholm in Sweden. Nearly 70% of the development portfolio is located in the Greater Oslo area as further described in Section 6.10.3 “Greater Oslo Area”. The broad development portfolio represents a competitive advantage for the Company as access to land is a barrier to entry and solid knowledge of the real estate market in the regions in which the Company operates is required to attract new land plots.

Figure 6.8: Location of the land portfolio (no. of residential units)

Total: 8,709 residential units 10% 3%

18%

69%

Greater Oslo Stavanger Bergen Rest

6.10.3 Greater Oslo Area Close to 70% of Selvaag Bolig’s area for development is located in the Greater Oslo area. The map below shows the location of the Company’s projects in Oslo, Akershus, Buskerud, Østfold and Vestfold.

Figure 6.9: Location of real estate development projects in the Greater Oslo Area

Marie Dehlies vei Bekkebakken Fernanda Nissen Lillohøyden

Løren Lørenskog

Utsikten

Kjørbo Vest

Skullerud

Moss Mortensrud Kaldnes Brygge Bjørnåsen Landås

Ormerudveien Kornmoenga

Figure 6.10: Overview of real estate development projects in the Greater Oslo area

6.10.4 Stavanger Stavanger, at the west coast of Norway, is one of Selvaag Bolig’s focus areas. Selvaag Bolig has four projects in the region which are all owned through the wholly-owned subsidiary Selvaag Bolig Rogaland AS.

Figure 6.11: Location of real estate development projects in the Stavanger area

Lervig Brygge

Jaasund BO Emmaus

Aase Gaard

Figure 6.12: Overview of real estate development projects in the Stavanger area

6.10.5 Bergen The Company has two projects in Bergen at the west coast of Norway, Nesttun and Nyhavn. Both projects are part of the Selvaag Bolig Plussbolig concept. Nyhavn is 100% owned by Selvaag Bolig and Nesttun is owned 75% by Selvaag Bolig. The remaining 25% of Nesttun is owned by Teigland Eiendom AS.

Figure 6.13: Overview of real estate development projects in the Bergen area

6.10.6 Other projects in Norway Selvaag Bolig has development projects in other large cities such as Kristiansand, Trondheim and Tromsø in Norway. In these cities, the Company plans to bring Plussbolig apartments to the market. The Pluss project in Kristiansand is a joint venture with Kruse Smith Eiendom AS.

Figure 6.14: Overview of other Selvaag Bolig real estate development projects

6.10.7 Other countries: Stockholm, Sweden The Company has two development projects in Stockholm, Sweden, both joint ventures with Veidekke Bostad AB where Selvaag Bolig has a 50% ownership stake. Both the projects are part of the Selvaag Bolig Plussbolig concept.

Figure 6.15: Overview of real estate development projects in the Stockholm area

6.10.8 Project status Table 6.2: Status of Selvaag Bolig’s residential units under construction as at 31 March 2012

No of Area Construction Expected Sales value Pre-sold Segment Project units (Sqm-BRA) start completion (NOKm) (%) Greater Løren 2B 178 12,222 Oct 10 Dec 12 555 68% Oslo Løren 5 100 8,930 Jan 11 Oct 12 327 94% Mortensrud 84 6,920 Mar 11 May 12 222 89% Bjørnåsen (row houses)* 30 3,521 Oct 11 Dec 12 98 43% Bjørnåsen (apartments) 67 4,882 Apr 11 Apr 13 147 94% Kornmoenga - phase I 51 4,293 Jan 11 Aug 12 172 65% Kornmoenga - phase II 12 1,488 Oct 11 Oct 12 48 67% (row houses)* Kornmoenga - phase II 56 4,809 Oct 11 Jan 13 197 63% (apartments) Skullerudlia 30 3,308 Oct 11 Apr 13 116 87% Sandvika 12 839 Nov 10 May 12 41 91% Sandvika 11 743 Jan 11 Jun 12 38 91% Sandvika 7 461 Mar 11 Sep 12 24 91% Sandvika 6 392 May 11 Oct 12 22 91% Moss Glassverk 52 3,780 Mar 11 May 13 128 63% Bekkebakken 80 5,063 Aug 11 Jan 13 162 100% Kaldnes Brygge 30 1,782 Apr 11 Jul 12 77 90% Rest of Tangen 27 2,485 Oct 10 Dec 12 131 74% Norway Tangen 34 2,432 Oct 10 May 13 126 74% Hageby B3* 20 2,508 Sep 11 Jan 13 100 65% Hageby B4* 29 2,749 Jan 11 May 12 105 100% Sjøkvartalet 67 4,334 Jan 11 Nov 12 231 85% Jaasund - Fjordhagen 1 19 1,015 Jun 11 Aug 12 45 100% Jaasund - Fjordhagen III 19 1,015 Apr 11 Apr 13 48 79% Nesttun 53 4,293 Jan 11 Jul 12 211 70% Nesttun 56 4,818 Jan 11 Jul 13 226 70% Total 1,128 89,836 3,598 79%

*) Projects with modular construction

Table 6.3: Selvaag Bolig’s residential units for sale with near term construction start as at 31 March 2012

Approved No of Area Sales value Segment Project constr. start units (Sqm - BRA) Sales start (NOKm) Pre-sold (%) Greater Løren 7*  88 4,435 Oct 11 221 100% Oslo Fernanda Nissens gate 10 70 5,616 Mar 12 308 53% Vestparken 40 2,996 Feb 12 127 30% Kaldnes Dokk Nord 43 3,178 Feb 12 156 35% Rest of Hageby B1*  36 1,948 Jan 12 96 78% Norway Hageby B2*  21 2,776 Jan 12 111 24% Sädersärlan 39 3,683 Mar 12 271 22% Total 3 / 7 337 24,632 1,289 58%

*) Projects with modular construction

Figure 6.16: Residential units with sales starts the next twelve months

Residential units 470

145 336

80 261 236 113 111 326 256 148 125

Q2' 12e Q3' 12e Q4' 12e Q1' 13e

Greater Oslo area Rest of Norway

In Q1 2012, Selvaag Bolig had sales starts on 249 units. The company expects sales starts on 24 projects with a total of 1,081 residential units in 2012. The estimate represents a 58% increase compared to the number of residential units with sales starts in 2011 (683).

7. MARKET OVERVIEW The residential housing market is tightly linked to the general economic activity and macroeconomic variables such as unemployment, interest rate levels, and wage growth and consumer confidence. In addition, demand for residential real estate is highly influenced by population structure and growth, migration patterns and lifestyle changes. The following section presents an overview of the main drivers of the residential housing market, industry specific statistical data and analysis, and an overview of the competitive industry structure.

7.1 THE GLOBAL ECONOMY The growth of the global economy slowed down in 2011 and reached 3.9% compared to 5.3% seen in 2010. The slowdown of the economic activity was mainly driven by the sovereign debt crisis escalating to the major Euro zone economies during the second half of 2011. Global growth in 2012 and 2013 is, according to the International Monetary Fund (the “IMF”), expected to be approximately 3.5% and 4.1% respectively. Activity in the advanced economies is projected to decelerate, however, falling back into a recession should be avoided; activity in the emerging markets and developing economies is expected to remain relatively solid according to the IMF (Source: World Economic Outlook, 17 April 2012). The weakest outlook is projected for the Euro zone economies, with a public debt crisis and a struggling banking sector being the main drivers for a mild recession projected for 2012 with economic activity contracting by -0.3% and a moderate growth of 0.9% projected for 2013.

Table 7.1. Global GDP growth 2007-2015e. Constant prices, per cent change

2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e World 5.4 2.8 -0.6 5.3 3.9 3.5 4.1 4.4 4.5 Advanced economies 2.8 0.0 -3.6 3.2 1.6 1.4 2.0 2.4 2.6 Euro area 3.0 0.4 -4.3 1.9 1.4 -0.3 0.9 1.4 1.6 Denmark 1.6 -0.8 -5.8 1.3 1.1 0.5 1.2 1.8 1.9 Sweden(*) 2.7 -0.5 -4.9 5.9 4.0 0.8 2.5 2.9 2.7 Mainland Norway(**) 5.3 1.5 -1.6 1.9 2.6 2.7 2.8 3.4 3.4 United Kingdom 3.5 -1.1 -4.4 2.1 0.7 0.8 2.0 2.5 2.6 Japan 2.2 -1.0 -5.5 4.4 -0.7 2.0 1.7 1.5 1.3 Central and eastern Europe 5.4 3.2 -3.6 4.5 5.3 1.9 2.9 3.6 3.9 Russia 8.5 5.2 -7.8 4.3 4.3 4.0 3.9 3.9 3.9 China 14.2 9.6 9.2 10.4 9.2 8.2 8.8 8.7 8.7 India 10.0 6.2 6.6 10.6 7.2 6.9 7.3 7.5 7.7 Source: IMF, World Economic Outlook Database April 2012, released 17 April 2012. (*) Data for Sweden from “Swedish Economy March 2012” published 28 March 2012 by National Institute of Economic Research. (**) Data for Norway from “Economic trends for Norway and abroad” published by Statistics Norway 16 February 2012.

7.2 THE NORWEGIAN ECONOMY The turbulence in the financial markets and less certain prospects for the global economy dampened the development of the Norwegian economy in 2011. Mainland economy in Norway grew by 2.6% in 2011 compared to 1.9% in 2010; however, the growth was slower than anticipated.

Statistics Norway projects the growth in mainland GDP to continue in 2012 and 2013 with 2.7% and 2.8%, respectively. The main drivers behind the growth is expected to be increasing investments and activity in the petroleum sector, a growing population and a relatively stable labour market, strengthening consumption and increasing investments in residential real estate. The main historical and projected macroeconomic indicators for Norway, as estimated by Statistics Norway, follow below:

Table 7.2. Main macroeconomic indicators, Norway 2007-2015e.

2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e Private Consumption 5.4 1.8 0.0 3.7 2.2 3.2 4.0 3.9 4.0 Public Consumption 2.7 2.7 4.3 1.7 1.5 2.2 2.8 3.1 2.4 Gross Investments 11.4 0.2 -7.5 -5.2 6.9 7.2 4.2 5.2 4.6 Traditional Export 9.2 3.2 -8.0 2.5 -0.6 -2.0 1.3 2.5 3.6 Traditional Import 8.3 0.2 -11.8 8.1 5.4 4.1 5.5 5.8 5.7 GDP 2.7 0.0 -1.7 0.7 1.6 2.2 2.0 2.4 2.7 Mainland-GDP 5.3 1.5 -1.6 1.9 2.6 2.7 2.8 3.4 3.4 Unemployment 2.5 2.6 3.2 3.6 3.3 3.4 3.5 3.5 3.4 CPI 0.8 3.8 2.1 2.5 1.2 1.3 1.7 2.1 2.6 CPI-ATE4 1.4 2.6 2.6 1.4 0.9 1.3 1.6 2.1 2.6 Yearly wage 5.4 6.3 4.2 3.7 4.3 3.6 3.7 4.4 4.9 Real disposable income 6.3 3.9 3.9 3.5 4.0 3.6 3.8 3.7 2.7

Source: Statistics Norway, “Economic trends for Norway and abroad” published 16 February 2012.

7.2.1.1 Unemployment Certain macroeconomic variables are closely related to the population’s wealth and future earnings prospects, and hence impact people’s willingness to invest in the residential real estate market. Unemployment affects housing demand negatively, as people's willingness to invest in housing is reduced if their future prospects are unclear. Further, unemployed individuals or individuals with uncertain earnings prospects are less likely to be granted a loan which for most individuals is required to finance a major part of the housing cost. Moreover, demand for housing is impacted by work related mobility, which is dampened by higher unemployment and vice versa.

Graph 7.1. Unemployment, Norway 2000-2015e

1% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e

Source: Statistics Norway, “Economic trends for Norway and abroad” published 16 February 2012.

As can be seen in the graph above, the unemployment rates in Norway during the economic boom period of 2006-2007 were the lowest since 2000, but started to increase from 2008 in pace with the financial crisis. Unemployment in 2010 accounted for 3.6% and was up from 3.2% compared to 2009. Unemployment fell to 3.3% in 2011. Statistics Norway expects unemployment to increase to 3.4% in 2012 and 3.5% in 2013 where it is expected to stabilise and recede to 3.4% by 2015. The reason for the uptick in unemployment is growing population driven by high immigration and a larger share of population in age groups seeking work.

7.2.1.2 Wage growth and consumer prices Households' disposable income and increasing welfare impacts the ability to borrow money and hence affects the demand for residential real estate. Increasing wages make housing more affordable and leads to optimism and positive sentiment in the market for residential real estate. In addition, increased welfare causes people to evaluate buying a larger or an extra house, which adds to growing demand.

4 CPI-ATE-consumer price index adjusted for changes in indirect taxes and excluding energy products.

As illustrated in the graph below, wages grew by more than 6% in Norway in 2008, but growth slowed down to 4.2% in 2009 and further to 3.7% in 2010 as a result of the financial crisis. Wages grew by 4.3% in 2011 and are expected to slow down to a growth of 3.6% in 2012 and reach 3.7% in 2013. The reasons behind the slowdown according to Statistics Norway are a slight increase in unemployment, weaker outlook for the traditional internationally exposed industries and low inflation. The wage growth is expected to start picking up after 2013 and reach 4.4% and 4.9% in 2014 and 2015 respectively.

Consumer price index (CPI) for 2011 was 1.2% compared to 2.5% in 2010. According to Statistics Norway, anticipated lower electricity prices in 2012, slower wage growth and a stronger Norwegian kroner (NOK) is expected to lead to low CPI growth in 2012 of 1.3%. By 2015 Statistics Norway expects the CPI to reach 2.6%.

Graph 7.2. Consumer prices and wages in Norway 2000-2015e

7% CPI Wage growth 6% CPI-ATE 5%

0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e

Source: Statistics Norway, “Economic trends for Norway and abroad” published 16 February 2012.

7.2.1.3 Interest rates, debt burden5 and interest burden6 The vast majority of the Norwegian population finances the purchase of housing by loans, and thus prevailing and projected interest rates are important when it comes to households' decision to invest in housing. The low interest rates prevailing over the last couple of years have changed households’ behaviour with respect to interest rate fixing, as it has become more common to have floating interest rates on loans. As of 31 December 2011 approximately 10.5% of all loans given to Norwegian residents had fixed interest rates, compared to the same number being 17.6% in the beginning of 2004 (Source: Statistics Norway). This means that the majority has floating interest rates and thus is exposed to interest rate fluctuations. In addition, the debt burden of the Norwegian households has been rising, which further increases households’ vulnerability to interest rate fluctuations. According to Statistics Norway and the Central Bank of Norway, 12.2% of households held debt corresponding to more than five times their disposable income as at 2008 compared to 4.6 % in 2000. However, the share of households’ disposable income used for interest expense is still relatively low, especially for the households of two persons, and for those in the later life stages (please refer to graph 7.4 below).

In December 2011, the Supervisory Financial Authority of Norway issued new guidelines for granting of housing loans. The key requirement is that the loan cannot exceed 85% of the real estate value. Further, if the loan-to-value is higher than 70%, the principal payments shall be initiated as of the first instalment date. The initiative is intended to reduce growth in real estate prices, as well as to incentivise households to increase their savings rate.

The graph below (on the left) illustrates the development of the average debt burden and the average interest burden for Norwegian households. As can be seen, the debt burden has flattened out during the financial crisis but is expected to trend upwards throughout 2015. The graph below on the right illustrates the interest expense in percent of disposable income for the different households.

5 Debt as a percentage of disposable income adjusted for estimated reinvested share dividends for 2000 – 2005 and redemption/reduction of equity capital for 2006 – 2015, The Central Bank of Norway. 6 Interest expenses after tax as a percentage of disposable income adjusted for estimated reinvested share dividends 2000 – 2005 and redemption/reduction of equity capital for 2006 – 2015 plus interest expenses, The Central Bank of Norway.

Graph 7.3. Average debt and interest burden, Graph 7.4. Interest expense for the different Norway 2000-2015e households in Norway 2000-2011

250% 10% 40%

200% 8% 30%

150% 6% % of disposable income disposable % of % of disposableincome 20% 100% 4%

10% 50% 2%

0% 0% 0% 06050403020100 07 08 1009 14e13e12e11e 15e 111009080706050403020100 Debt burden, average Norway (l.a.) Interest burden, average Norway (r.a.) Single Young couple Established couple Source. The Central Bank of Norway. Monetary Policy Report nr. Source: Norges Eiendomsmeglerforbund. Housing price 1/2012 statistics, December 2011

On the back of the financial crisis, the interest rate levels in many countries have been kept at record low levels for an extended period to stimulate growth. This has implications for Norway, as the Central Bank of Norway will be interested in keeping the interest rates low in order to avoid widening the gap between Norwegian and international interest rates. An increasing interest rate differential may cause appreciation of the Norwegian currency and hurt the export industries. The key policy rate reached its lowest level in June 2009 at 1.25%, was increased to 2.25% in May 2011, and decreased again to 1.75% in December 2011 as a consequence of the financial unrest in the Euro zone economies. In March 2012, the key policy rate was further reduced to 1.50%. The graph below presents the historical development and the projected change in money market and bank loan interest rates, which are expected to remain relatively low during 2012-2014.

Graph 7.5. Interest rates, Norway 2000-2015e

10% Money market Bank loan 8%

0 % 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e

Source: Statistics Norway, “Economic trends for Norway and abroad” published 16 February 2012.

7.3 THE DEMOGRAPHIC DEVELOPMENT IN NORWAY 7.3.1 Population composition and growth Population size and age structure, gender and civil status, the number of families with and without children and whether people are living alone or not, are all factors impacting the residential housing demand. A growing population will, everything else being equal, increase the demand for housing and vice versa.

The Norwegian population constituted 4.99 million inhabitants at 1 January 2012 representing a growth of 1.3% in 2011, which is the highest population growth registered in Norway since 1920. The Norwegian population exceeded 5 million inhabitants in March 2012 and is expected to pass 6 million inhabitants by 2030 (according

to Statistics Norway – Norway’s main variant projection for estimating population growth (MMMM7)). The graph below (to the left) illustrates the historical and projected population growth in Norway:

Graph 7.6. Population growth in Norway 2000-2015e. Number of Graph 7.7. Net migration into persons Norway by Country, 2010

80,000 Net migration Excess births 70,000 Sweden Latvia Lithuania 7.9% 60,000 5.0% Eritrea 13.6% 4.6% Germany 50,000 3.5%

40,000 Poland 18.0%

30,000 21.6%

20,000

10,000 Other Europe 25.9% Rest of World 0 0100 040302 070605 100908 12e11 14e13e 15e Source: Statistics Norway Source: Statistics Norway

Since the enlargement of the European Union in 2004, the population growth in Norway has increased significantly with several years of record-high numbers. The historical average of population growth in Norway has been around 0.6%, however over the last couple of years it has been above 1%. Norway’s population grew with 20,000 to 30,000 persons per year in the period 1990-2004, compared to approximately 56,000 in 2007, 62,000 in 2008, 59,000 in 2009 and 62,100 in 2010. In 2011 the Norwegian population grew with record high 65,550 individuals (1.3%). The high growth mainly comes from immigration, which accounts for more than 2/3 of the growth. Approximately 75% of all immigrants into Norway come from the European countries, with the largest inflow from Poland, Lithuania and Sweden, according to the net migration data of 2010. In addition to immigration, rising birth rates have also been contributing to the population growth in Norway. Lastly, increased life expectancy leads to lower mortality rates. Statistics Norway projects that the Norwegian population will increase by 23% from 2011 to 2030 (based on the main estimation variant, as described above).

In addition to a growing population, the number of households has been increasing in Norway. As of January 2011, there were 2.2 million households in Norway which is 31,000 more than in January 2010. According to Statistics Norway, the average household size in Norway is 2.22 persons per household, compared to 3.27 persons per household in 1960. According to Statistics Norway, 25% of the Norwegian population lives in a household with two persons and approximately 20% of the population lives alone, as compared to 4% in 1960 and only 2% in 1920, respectively.

7.3.2 Centralisation Norwegians move from the periphery towards more central regions. According to Statistics Norway, 427,335 persons moved within municipalities and 226,361 moved between municipalities in 2011. Migration flows run across the country, however there are more people moving to the Oslo region and the other major city regions than in the opposite direction. Centralisation leads to a stronger housing demand in the metropolitan areas. The graph below provides an overview of the population growth by county in Norway in 2011.

7 Statistics Norway has composed several population projection alternatives. Alternative assumptions have been made for each of the four components in the projections: fertility, life expectancy, inter-municipality migration and immigration. The assumptions are designated as L (low), M (medium), H (high), K (constant life expectancy) or 0 (for migration in Norway and for immigration and emigration). The main variant MMMM assumes the medium level for each component.

Graph 7.8. Population growth by county in Norway, 2011. Number of persons

Oslo 14 , 0 5 5 Akershus 10 , 6 0 1 Rogaland 7,028 Hordaland 6,330 Buskerud 4,054 Sør-Trøndelag 3,884 Østfold 3,525 Vestfold 2,719 Møre og Romsdal 2,724 Vest-Agder 1, 9 16 Aust-Agder 1, 4 4 7 Nord-Trøndelag 1, 2 5 0 Hedmark 1, 16 9 Troms 1, 0 9 6 Oppland 1, 0 6 0 Nordland 1, 0 4 0 Telemark 838 Sogn og Fjordane 459 Finnmark 370

Source: Statistics Norway

According to Statistics Norway, populations in the major Norwegian cities; Oslo, Bergen, Stavanger and Trondheim, have been growing significantly over the last ten years. The rate of annual population growth in Oslo has increased from 0.8% in 2001 to 2.1% in 2011, with corresponding numbers being 0.8% and 1.8 % for Stavanger. The Company’s focus areas; Oslo, counties around Oslo8, Stavanger (Rogaland) and Bergen (Hordaland), are among the strongest growing areas by population in Norway, according to Statistics Norway’s data as illustrated by graph 7.8 above. These regions are expected to grow by an average of 30% during the period from 2011 to 2030, as shown in the graph below.

Graph 7.9. Expected increase in population from 2011 to 2030 in the focus areas of Selvaag Bolig. Thousand inhabitants and per cent change +26%

+29% 1,681 +29% 1,334 +37%

791 612 503 389 314 430

Oslo Counties around Oslo (*) Bergen region Stavanger region

2011 2030

Source: Statistics Norway, MMMM estimation variant

8 Includes Akershus, Buskerud, Vestfold and Østfold counties

7.4 RESIDENTIAL HOUSING INDUSTRY IN NORWAY 7.4.1 Existing housing stock The existing housing stock in Norway consists of approximately 2.3 million dwellings, which grew by an average of 1.1% annually the last few years based on data provided by Statistics Norway. The housing stock is divided into undetached houses, apartments and single family homes; the latter constituting more than half of the existing housing stock (see left graph below). The housing stock in Norway is rather old: 35 % of dwellings were built during the last 30 years and only 12% during the last 11 years (see right graph below). Approximately 28% of the dwellings were built between 1960 and 1980's, which represents a period in Norway characterized by high construction activity.

Graph 7.10. Existing housing stock in Norway, by Graph 7.11. Existing housing stock in Norway, by type. 2011 year of building. 2011

28% 21%

54% 28% 23% 25%

12%

Unknown 2001 and after 1960 and earlier Undetached houses Single family homes 1981 - 2000 1961-1980 Apartments Source: Statistics Norway

The older dwellings often require renovation to meet today's living standards. Even though older dwellings are often located in more attractive areas, newer dwellings are perceived to be of higher quality and better reflect the needs of today's buyer (size, balcony, terrace, garage, etc.). Prognosesenteret AS has carried out a survey to look at demand for new versus old dwellings; 70% of the participants answered that they preferred to move into a new house in order to avoid renovation process and related costs.

Total value of the construction market in Norway (including new residential, renovation, new non-residential9 and non-residential renovation, but excluding civil engineering) according to the data from Prognosesenteret AS, amounted to NOK 244.5 billion in 2011, which was 5% higher than in 2010. Prognosesenteret AS expects the total market to grow by 3% in 2012 and 2013 and 4% in 2014.

Of the total construction market, the new residential construction market and the residential renovation market constituted approximately 45% of the total market and amounted to NOK 110.4 billion in 2011, representing an increase of 13.2% from 2010, the highest increase seen since 2004, which was mainly driven by high activity in the new residential construction market. The graph below presents an overview of the new residential construction and residential renovation markets historically and projections until 2014 as estimated by Prognosesenteret AS.

9 Non-residential construction includes a wide range of private commercial buildings (offices, shops and shopping centres, industrial buildings, warehouses, parking houses, hotels, restaurants etc.), public buildings (schools, kindergartens, hospitals, museums, churches etc.) holiday homes and residential garages.

Graph 7.12. Construction activity by type 1996-2014e. In billion NOK (2011 production prices)

140 New residential construction Residential renovation 120

100

0 200420032002200120001999199819971996 2005 200820072006 20102009 2011e 2012e 2013e 2014e

Source: Prognosesenteret AS: New residential houses and residential garages, dataset dated 26 March 2012.

As can be seen, the residential renovation market has improved steadily but rather moderately since 1995 as compared to the new residential construction market, which fluctuated strongly with the economic cycle. The new residential market fell by 32% from 2007 to 2009 while the renovation market contracted by a mere 1%. The growth in the years to come is, however, expected to be generated by new residential construction, which grew with 28% in 2011 and is expected to increase by 20% until 2014, compared to the same numbers being 2% and 10%, respectively, for the renovation market according to Prognosesenteret AS.

7.4.2 Housing starts In total, 27,735 housing starts were registered in 2011, which, according to Statistics Norway, represents a 30% growth from 2010. It is projected that during 2012 a total of 28,000 housing starts will be initiated. The graph below shows the development of housing starts in Norway since 1990, including projections for 2012-2014.

Graph 7.13. Housing starts in Norway by building type 1990 – 2014e. Units

35,000 Apartments Undetached Single family

30,000

25,000

20,000

15,000

10,000

5,000

0 20062005200420032002200120001999199819971996199519941993199219911990 200820072009 20112010 2012e 2013e 2014e Source: Prognosesenteret AS: New residential houses and residential garages, dataset dated 26 March 2012.

Housing starts peaked to its highest level since 1990’s in the period 2004-2007. During the financial crisis the housing starts bottomed out and reached just slightly higher levels than during the crisis of the 1990's. In the

years immediately preceding the recent financial crisis, the combination of soaring residential prices and high interest rates dampened demand for residential housing. The general downturn that followed enhanced the reduction in housing production, which fell from approximately 33,000 units in 2007 to just below 20,000 by 2008 and 2009. Prognosesenteret AS projects that housing starts will approach the numbers of housing starts seen in the period 2005-2007 by 2013, as illustrated in the graph above.

According to Euroconstruct, apartments are the type of dwelling that is most adversely affected when housing production falls. Permits for apartments fell from 17,000 in 2007 to 7,000 and 6,000 in 2008 and 2009 respectively as can be seen in the graph above.

Based on expectations of a growing population, an increasing number of the elderly, and fewer persons per household, Prognosesenteret AS projects a need of 40,000 new dwellings per year in Norway for the coming years. The estimated numbers of houses to be completed over the next years are well below these figures (see graph below), and thus suggest an undersupply of housing during the next years. This estimated supply demand imbalance is expected to drive the prices for residential real estate.

Graph 7.14. Housing completions 2007-2014e in Norway. Thousand units

1+2 family houses Flats

32.0 31.0 30.0 28.6 26.0 11.0 14.3 21.7 11.0 13.7 20.0 17.8 10.0 11.6 9.0 10.9 19.0 21.0 16.7 14.9 16.0 10.1 11.0 6.9

2007 2008 2009 2010 2011e 2012e 2013e 2014e

Source: Euroconstruct, dataset from November 2011.

As can be seen in the graph below there was an undersupply of housing during the 2008-2011 in Norway and this trend is expected to continue over the next years..

Graph 7.15. Difference between housing supply and demand in Norway 2002- 2014e.

20,000 75,000 Difference between housing supply and demand (l.h.a.) Population growth (r.h.a.) 15,000 60,000 10,000

5,000 45,000

30,000 -5,000

-10,000 15,000 -15,000

-20,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e

Source: Difference between number of housing completions and increase in households 2002-2012e, Central Bank of Norway, Monetary Policy Report nr. 1/2012. Estimates for 2013 and 2014 are based on housing need projected by Prognosesenteret and housing completions by Euroconstruct.

7.4.3 Housing prices According to the historic data series published by Statistics Norway, housing prices in Norway have increased with a compound annual growth rate of approximately 8% from 1993 to 2011. Housing prices fell by 1.1% in 2008 for the first time since 1993, due to the financial crisis. In January 2009 housing prices in Norway started to increase, in contrast to many other industrialised countries. The economic downturn was less severe in Norway than elsewhere with a strong labour market and low unemployment. This, combined with low interest rates, an increasing number of households and low supply of housing, dominated the negative market sentiment caused by the financial crisis.

Graph 7.16. Housing prices in Norway 1993 – 2015e (YoY % change) 15.8%

13.7% 13.0% 12.6% 11.8% 11.3% 11.0% 10.1% 9.3% 8.2% 8.3% 8.0% 7.1% 7.1% 6.7% 5.5% 5.8% 5.8% 5.0%

1.7% 1.9% 1.2%

-1.1%

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e

Source: Statistics Norway, “Economic trends for Norway and abroad” published 16 February 2012.

The average prices of all types of second hand (existing) dwellings in Norway increased by approximately 1.9% in 2009 after a fall of 1.1% in 2008. In 2010 and 2011 prices increased with 8.3% and 8.0%, respectively, mainly due to high undersupply of available dwellings for sale and low building activity. Statistics Norway projects that housing prices will grow by 5.5% in 2012, and by 5.8% in both 2013 and 2014.

Prices for residential real estate vary across different regions in Norway with the higher prices in the areas with a strong population growth, especially the counties where the larger cities are situated. Below is the list of counties with the highest real estate prices in Norway, according to data published by Norges Eiendomsmeglerforbund, which largely corresponds to the focus areas of Selvaag Bolig.

Table 7.3. Average prices for all types of existing dwellings, Norway. NOK thousand per square meter

Change Change # 2010 2011 04/2011 04/2012 2010-2011 04/11 – 04/12

1 Oslo 36.2 39.7 9.9% 39.1 42.8 9.5%

2 Rogaland 28.0 31.2 11.3% 30.9 33.4 8.3%

3 Akershus 27.3 29.7 8.7% 29.5 31.8 8.1%

4 Hordaland 25.9 28.2 9.1% 28.2 30.2 7.1%

5 Trøndelag 23.4 25.8 10.3% 25.5 27.9 9.4%

Stavanger 29.8 33.3 11.7% 36.8 39.8 8.2%

Bergen 25.2 27.6 9.7% 30.1 32.5 7.8%

Norway 25.4 27.7 9.0% 27.5 29.8 8.5%

Source: Norges Eiendomsmeglerforbund and Eiendomsmeglerforetakenes Forening

Note: Stavanger is situated in Rogaland county, Akershus is a suburban Oslo county and Bergen is situated in Hordaland county.

7.4.4 Construction costs Construction costs grew significantly during the last building boom in 2006-2007 in Norway. The main reasons were rapidly increasing wages and building material prices. In 2007 prices started to fall and from 2008 to 2009 prices decreased by approximately 6%. In 2011, construction costs rose by more than 3%, as can be seen in the graph below.

Graph 7.17. Construction costs index. January 2005 - March 2012. Per cent change

12%

Detached houses of wood Multi dwelling houses Residential buildings

10%

0% Jul-10 Jul-11 Jul-09 Jul-05 Jul-06 Jul-07 Jul-08 Jan-11 Jan-12 Jan-09 Jan-10 Jan-05 Jan-07 Jan-08 Jan-06 Sep-10 Sep-11 Sep-07 Sep-09 Sep-05 Sep-06 Sep-08 Mar-11 Mar-12 Mar-06 Mar-08 Mar-09 Mar-10 Mar-05 Mar-07 Nov-10 Nov-11 Nov-08 Nov-09 Nov-06 Nov-07 Nov-05 May-10 May-11 May-09 May-05 May-06 May-07 May-08 Source: Statistics Norway

According to Prognosesenteret, construction prices are expected to grow in the range of 3% - 5% during 2012- 2014.

7.5 OVERVIEW OF THE SWEDISH MARKET The Swedish residential housing market is largely driven by the same factors as the Norwegian residential housing market, such as the general economic activity and macroeconomic variables such as unemployment, interest rate levels, wage growth, consumer confidence, demographic factors, etc. However, the number of inhabitants owning its own property varies between the two countries, with 77% in Norway and 63% in Sweden, according to Euroconstruct data. Thus, the Swedish market has a larger share of rented properties.

The 2.5 year lasting recovery of the Swedish economy post the financial crisis of 2008 was weakened by the effects of the Euro zone crisis in the end of 2011. Uncertain economic outlook dampened exports, investments and consumption.

Sweden’s GDP grew by 4.0% in 2011 compared to 5.9% in 2010, and is expected to grow by 0.8% in 2012. The GDP is expected to grow by 2.5% and 2.7% in 2013 and 2014, respectively, according to the National Institute of Economic Research (NIER). Consumer confidence dropped and consumer demand has slowed considerably due to public debt crisis in the Euro zone countries. Household consumption increased by 2.1% in 2011 compared to 3.4% in 2010; NIER expects to see moderate growth of 1.7% in 2012 mainly due to a rise in unemployment but expects the growth rate to approximate to 3.1% and 3.5% in 2013 and 2014, respectively.

Interest rates are expected to remain low for the coming years in Sweden. Policy rate was lowered to 1.75% in December 2011 and further to 1.50% in February 2012. NIER expects the policy rate to be held constant at 1.50% during 2012 and 2013.

The average Swede’s interest expenses have declined considerably as a result of lower interest rates. In addition,

a strong increase in real income in the years from 1997 to 2007 enabled more households to take out home loans, which lead to substantial increases in Swedish households' indebtedness. Following the sharp decline in household debt after the banking crisis in 1992-1993, household indebtedness increased from 90% of disposable income in the mid-1990’s to around 170% in 2010 (Source: Sveriges Riksbank Economic Review 2011:1). An overview of the main macroeconomic indicators for Sweden, historically and as projected by NIER, is provided in the table below:

Table 7.4. Macroeconomic indicators for Sweden 2007-2015e. Per cent change

2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e Private Consumption 3.0 -0.2 -0.4 3.4 2.1 1.7 3.1 3.5 3.4 Public Consumption 0.4 1.3 1.7 2.5 1.8 0.8 0.7 0.7 0.7 Gross Investments 7.5 3.5 -16.3 7.1 5.9 2.0 4.5 5.8 5.7 Export 5.8 1.7 -13.4 11.0 6.8 1.0 4.5 5.8 6.1 Import 9.4 3.0 -13.7 12.8 6.2 0.5 5.4 7.1 7.3 GDP 2.7 -0.5 -4.9 5.9 4.0 0.8 2.5 2.9 2.7 Unemployment 6.2 6.1 8.3 8.4 7.5 7.7 7.7 7.3 6.7 CPI 2.2 3.4 –0.5 1.2 3.0 1.5 1.4 1.9 2.4 Yearly wage 3.1 4.4 2.5 2.9 2.7 3.3 2.9 3.0 3.2 Policy Interest Rate(*) 4.00 2.00 0.25 1.25 1.75 1.50 1.50 2.25 2.75 Real Disposable Income 5.5 2.2 2.1 1.2 3.2 2.3 2.0 1.9 1.8

Source: National Institute of Economic Research (NIER). (*) At year end.

Population growth in Sweden has, similarly to that in Norway, increased significantly since 2004, due to immigration in relation to the expansion of the European Union. The graph below presents the growth in the Swedish population from 2000 to 2011 as well as projections for the years 2012 to 2015.

Graph 7.18. Population growth in Sweden 2000-2015e. Number of persons

90.000 Net migration Excess births 80.000

70.000

60.000

50.000

40.000

30.000

20.000

10.000

-10.000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2014e 2015e Source: Statistics Sweden

There were nearly 9.5 million inhabitants in Sweden by the end of 2011. Statistics Sweden expects that the Swedish population will reach 10 million inhabitants by 2021. The population is expected to grow by approximately 64,000 individuals in 2012, 63,000 in 2013 and 60,000 in 2014. The main reason behind a somewhat slower population growth in the years to come is reduced immigration (especially due to new international tuition fees introduced in Sweden at the end of 2011, which is expected to significantly reduce student inflow into the country). The strongest growing areas of Sweden have historically been the larger cities Stockholm, Gothenburg and Malmö, and their surrounding areas. Stockholm grew by approximately 37,000 individuals in 2011, which was the highest growth in Sweden, representing approximately 55% of the total population growth in the country. The growth for Stockholm is expected to slow down in tact with the generally lower growth in the country as a whole, but the region is expected to remain the strongest growing area in Sweden.

According to an analysis by Riksbanken10, historically the construction of housing was not sufficient to cover demand stemming from population growth and additionally the construction was unevenly distributed in relation to the population trends. Though the nation’s housing stock grew faster than its population in the period from 1997 up to 2010, the trend has been the opposite in areas with the greatest population growth, like Malmö and Stockholm, which aided in keeping real estate prices high.

After reaching a historical bottom in 1993 in the aftermath of the bank and property crisis, the Swedish housing prices have increased with a compound annual growth rate of approximately 6% per year. Between 1993 and 2011, Statistics Sweden’s real estate price index for one- and two-dwelling buildings increased by about 210%. The housing prices grew with approximately 7.4% in 2010 but slowed down to a growth of 0.7% in 2011 according to Statistics Sweden.

Graph 7.19. Housing prices in Sweden, one- and two- dwelling buildings, 1990-2011 (YoY % growth)

12.2% 11.4% 11.0% 10.7% 9.6% 9.2% 9.6% 9.6% 8.0% 7.4% 6.9% 7.0% 6.3% 6.6%

4.6% 2.9% 2.0% 0.5% 0.5% 0.7%

-9.2%

-11.2%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Statistics Sweden

The activity in the Swedish housing market was relatively low throughout the 1990's, with the number of housing starts beginning to pick up in 1999 fuelled by improving macroeconomic conditions and a build-up of demand during the period of low activity. Housing starts fell sharply in connection with the recent financial crisis, accelerated with the number of housing starts growing by 55% in 2010, however receding by 14% during 2011. Euroconstruct projects 26,000 housing starts in Sweden in 2012 and 28,000 in 2013.

10 "The price development in the Swedish housing market – a fundamental analysis" by Lars Frisell and Masih Yazdi.

Graph 7.20. Housing starts in Sweden, by housing type 1991-2014e. Number of units

60,000 Apartments 1+2 family dwellings 50,000

40,000

30,000

20,000

10,000

0 9291 9796959493 9998 03020100 060504 10090807 11 14e13e12e

Source: Statistics Sweden and Euroconstruct’s dataset of November 2011.

Euroconstruct further projects that the need for housing in the Swedish market will be around 35,000–40,000 new dwellings a year. As can be seen in the graph below, the expected housing completions for the years 2012- 2014 are below those figures, which indicate a supply demand imbalance in the coming years in Sweden.

Graph 7.21. Housing completions in Sweden 2007-2014e. Thousands of units

1+2 family houses Flats

32.2 31.5 29.7 29.9 27.5 29.0 12.2 9.7 11.7 8.2 9.1 9.8 20.1 18.5 8.5 6.9 20.8 20.8 21.8 18.0 19.9 17.8 11.6 11.5

2007 2008 2009 2010 2011 2012e 2013e 2014e Source: Statistics Sweden and Euroconstruct’s dataset from November 2011.

7.6 INDUSTRY AND COMPETITION 7.6.1 Norway The Norwegian residential real estate development market is fragmented and hence competitive. Further, there is a distinct geographical segmentation of the market, as many players operate locally or are focused on selected regions of the country, and only a few larger players cover the most of the Norwegian market. As described in Section 6.10.2, 69% of Selvaag Bolig’s development portfolio is located in the Greater Oslo Area, i.e. the eastern part of Norway. According to “ECON Nye Boliger – Østlandet nr.2 – 2012”11, a total of 12,236 residences were available for sale in the eastern part for Norway as of April 2012. Of those, Selvaag Bolig had 1,013 residences for sale, which represents a 8.3% market share and the highest number of residences for sale in the region. The table below presents the 10 largest residential developers in the Eastern part of Norway:

11 “ECON Nye Boliger” is published by ECON Pöyry, which collects new residential development market data covering the eastern and the western part of Norway in two separate editions. The database includes residential development projects that comprise of 15 or more residences in development. Only projects that have residences available for sale are included into the database. The eastern part of Norway as defined in the ECON Pöyry report includes Oslo, Akershus, Vestfold, Østfold, Buskerud and Hedmark counties. The western part of Norway as defined in the ECON Pöyry report includes Rogaland and Hordaland counties (Stavanger and Bergen regions).

Table 7.5. Largest residential developers by number of available residences for sale in the eastern part of Norway Residential developer Number of residences for sale Market share as at April 2012 Selvaag Bolig ASA 1,013 8.3% Veidekke 596 4.9% JM 561 4.6% Skanska Bolig 509 4.2% Sørenga Utvikling KS 453 3.7% Block Watne 342 2.8% Fornebu Utvikling ASA 329 2.7% Lodalen Utvikling AS 324 2.6% PEAB 293 2.4% Tjuvholmen KS 236 1.9% Top 10 4,656 38.1% Total market 12,236 100%

Source: ECON Nye Boliger - Østlandet, nr. 2 – 2012.

The table above also illustrates the fragmented structure of the Norwegian residential development market. The 10 largest developers represent 38.1% of the total market as of April 2012 in the eastern part of Norway, measured by the number of available residences for sale. Respective number for the western part of Norway is 47.8%, as seen in the table below.

Table 7.6. Largest residential developers by number of available residences for sale in the western part of Norway Residential developer Number of residences for sale Market share as at April 2012 Kruse Smith Eiendom AS 393 10.0% OBOS 274 7.0% Skanska Bolig AS 250 6.3% Selvaag Bolig ASA 234 5.9% NCC Bolig 163 4.1% Block Watne 125 3.2% A Utvik AS 116 2.9% Stavanger BBL 112 2.8% JM 110 2.8% Walde Bolig AS 107 2.7% Top 10 1,884 47.8% Total market 3,942 100%

Source: ECON Nye Boliger – Vestlandet, nr. 2 – 2012.

A total of 27,735 housing starts were registered in Norway in 2011. The equivalent number for Selvaag Bolig is 837 housing starts. This makes Selvaag Bolig the second largest player and represents 3.0% of the total market in Norway based on the number of housing starts. The table below presents the main competing residential developers based on housing starts in 2011 in Norway.

Table 7.7. Largest residential developers by number of housing starts in Norway in 2011 Residential developer Number housing starts in 2011 Market share Block Watne(*) 864 3.1% Selvaag Bolig 837 3.0% OBOS 724 2.6% JM 640 2.3% Skanska 540 1.9% Veidekke 441 1.6% Top 6 4,046 14.6% Total market 27,735 100%

Source: Company data, Statistics Norway. (*)Finished houses with land accounted for approx. 92% of Block Watne’s sales in Norway in 2011 (Selvaag Bolig: 100%).

7.6.2 Sweden The Swedish residential real estate development market is characterized by many players and a fragmented structure. Selvaag Bolig’s main competitors in the Stockholm region, which is the current key focus area for the Company, are considered to be JM, Skanska, NCC and Peab, in addition to local players in the large cities. Selvaag Bolig currently has two projects in the Stockholm region with an expected development potential of 160 residential units. The projects are joint ventures with Veidekke Bostad AB.

8. BOARD OF DIRECTORS, MANAGEMENT, EMPLOYEES AND CORPORATE GOVERNANCE

8.1 BOARD OF DIRECTORS In accordance with Norwegian statutory law, the Board is responsible for administering the Company’s affairs and for ensuring that the Company’s operations are organized in a satisfactory manner.

Pursuant to the Company’s Articles of Association the Board shall have 3 to 9 members. The members of the Board are mainly elected by the general meeting of shareholders, for terms of two years. Board members may be re-elected. Two members of the Board are currently elected by and amongst the employees, in accordance with Norwegian statutory requirements.

The Company’s current Board of Directors was elected at the extraordinary general meeting held 30 August 2011 and at the annual general meeting held 19 April 2012, except for the employee representatives, who were elected amongst the Group’s employees in April 2012. The current Board is composed of 8 directors, including the chairman of the Board and two employee representatives.

In accordance with Norwegian law, the CEO and at least half the members of the Board must either be resident in Norway, or be citizens of and resident in an EU/EEA country. All the Board members are Norwegian residents. Furthermore, the composition of the Board satisfies the requirements to representation of both genders in the Board, pursuant to the Norwegian Public Limited Companies Act Section 6-11a.

The Company’s business address serves as c/o address in relation to Board members in the Company.

Below is a presentation of each of the current members of the Board of Directors:

Olav Hindahl Selvaag (born 1969), Chairman of the Board Mr. Olav Hindahl Selvaag began his career as CEO in Tulsa West Corporation in the USA and later held a position within property management in KLP Eiendom AS. In the period after 1998, Mr. Selvaag has held various executive management positions within the Selvaag Group, inter alia as Project Manager in AS Selvaagbygg, as CEO in Selvaag Pluss AS and as leader of the Tjuvholmen development. Mr. Selvaag has since 2008 held the position as Group Director of Selvaag Gruppen AS within residential and project development. Mr. Selvaag holds a Bachelor of Science degree from Santa Clara University, USA and a Master of Science degree from Stanford University, USA. Mr. Selvaag is a Norwegian citizen.

Karsten Bomann Jonsen (born 1950), Board member Mr. Jonsen began his career as a Financial Consultant in Apothekernes Laboratorium AS and later held the positions as Finance Controller and Director in the Trade Division of Løvenskiold-Vækerø AS. Mr. Jonsen has held various executive management positions within the Selvaag Group since 1985. Mr. Jonsen currently holds the position as Group Chief Executive Officer in Selvaag Gruppen AS, a position held since 2009. Mr. Jonsen holds a Master of Science degree in business and economics from BI Norwegian Business School. Mr. Jonsen is a Norwegian citizen.

Anne Breive (born 1965), Board member Ms. Breive began her career in Kredittkassen within customer relations and later held positions as Vice President Corporate Funding and Vice President Corporate Controlling with Norske Skog ASA. She has been CFO in Statnett SF and has held the position as CFO with Løvenskiold-Vækerø AS. She currently holds the position as CFO in Trelleborg Offshore AS. Ms. Breive holds a Master of Science degree in business and economics from BI Norwegian Business School and a Master of Business Administration degree from Glasgow University, specialising in finance and international accounting. Ms. Breive is a Norwegian citizen.

Wenche Kjølås (born 1962), Board member Ms. Kjølås has held a number of executive positions within various companies, among others as Economical Director with Hakon Gruppen AS and Kavli Holding AS, CEO with O. Kavli AS, Financial Director with Kavli Holding AS and CFO with Grieg Logistics AS and is currently Managing Director of Grieg Maturitas AS (GM), a positioned held since 2009. Ms. Kjølås holds a Master of Science degree in business and economics, with specialist areas within economic management and finance, project financing, organisation and strategy from NHH Norwegian School of Economics. Ms. Kjølås is a Norwegian citizen.

Ole Jarl Rettedal (born 1961), Board member Mr. Rettedal has held a number of executive positions within various major companies and was the chairman of the board of Hansa Property prior to the merger with Selvaag Bolig. He has held various executive management positions within oil related companies like Hitec, National Oilwell and Grenland Group. He has also held the position as Partner with HitecVision and is currently CEO with IKM Invest AS, a position held since 2007. Mr. Rettedal holds a Master of Science degree from the Norwegian Institute of Technology (NTH). Mr. Rettedal is a Norwegian citizen.

Gisele Marchand (born 1958), Board member Ms. Marchand has held a number of executive positions within various companies, among others as CEO with the Norwegian Public Service Pension Fund and with Batesgruppen ASA, as well as executive positions within the DNB ASA group. Ms. Marchand is currently CEO with Eksportfinans ASA. Ms. Marchand holds a Master of Science degree in business and economics from Copenhagen Business School and has completes additional studies from Montpellier Business School. Ms. Marchand is a Norwegian citizen.

Christopher Brunvoll (born 1977), Board member (employee representative) Mr. Brunvoll began his career as an auditor in PricewaterhouseCoopers AS. After five years in auditing he held the position as Group Financial Controller with Bjørgvin AS and later Group Chief Accountant with Reservoir Exploration Technology ASA. He is currently employed as Group Financial Controller with Selvaag Bolig ASA, a position held since August 2010. Mr. Brunvoll holds a Master of Science degree in accounting and auditing from NHH Norwegian School of Economics. Mr. Brunvoll is a Norwegian citizen.

Anne-Kari Drønen Mathiesen (born 1962), Board member (employee representative) Ms. Mathiesen has held a number of positions within various companies. She has held the positions as designer with Sweco, Assistant Director with Statsbygg and Engineering Manager with Byggeadministrasjonen AS and A/S Selvaagbygg, Currently, she is Engineering Manager with Selvaag Bolig, a position held since 2009. Ms. Mathiesen holds a Master of Science degree in civil engineering from Norwegian Institute of Technology (NTH). Ms. Mathiesen is a Norwegian citizen.

The table below shows the Board of Directors direct and indirect ownership in Selvaag Bolig in addition to the terms for which they are elected:

Name Position Member Since Term Shares owned Olav Hindahl Selvaag Chairman 2008 2013 0 Karsten Bomann Jonsen Member 2008 2013 0 Anne Breive Member 2011 2013 0 Wenche Kjølås Member 2011 2013 0 Ole Jarl Rettedal Member 2011 2013 0 Gisele Marchand Member 2012 2014 0 Christopher Brunvoll Member (empl. repr.) 2012 2014 0 Anne-Kari Drønen Mathiesen Member (empl. repr.) 2011 2014 0

None of the Board members hold, directly or indirectly, any shares or options over shares in the Company, other than that Mr. Selvaag, Mr. Bomann Jonsen and Mr. Rettedal, being representatives of major shareholders of the Company, as further described in Sections 8.1.1 and 13.7 and below.

Olav Hindahl Selvaag (Chairman of the Board) owns approximately 46% of Selvaag Gruppen AS, the main shareholder of Selvaag Bolig (owning approximately 60.8% of Selvaag Bolig). His brother, Gunnar Frederik Selvaag and their father, Ole Gunnar Selvaag, own approximately 46% and 8% of Selvaag Gruppen AS, respectively.

8.1.1 Independence of the Board Olav Hindahl Selvaag (Chairman) represents the main shareholder of the Company; Selvaag Gruppen AS, owning approximately 60.8% of Selvaag Bolig. Olav Hindahl Selvaag is also the grandchild of the founder of the Selvaag Group and currently holds position as Group Director of Selvaag Gruppen AS. Karsten Bomann Jonsen currently holds the position as CEO of Selvaag Gruppen AS and hence is also a representative of the main shareholder of the Company. Furthermore, both Mr. Selvaag and Mr. Bomann Jonsen currently hold positions as board members in various companies in the Selvaag Group. Ole Jarl Rettedal currently holds the position as CEO of IKM Invest AS and board member of IKM Eiendom AS. IKM Eiendom AS is wholly owned by IKM Invest AS, and the former is a major shareholder in Selvaag Bolig.

The other shareholder elected Board representatives are independent of the executive management, material business contacts and main shareholders of the Company.

Except for as mentioned above, there are no family relationships between any of the members of the administrative, management or supervisory bodies, or the founders of the Company.

8.1.2 Remuneration and benefits The annual general meeting held 19 April 2012 resolved the following remuneration to the members of the Board of Directors:

 Chairman of the Board NOK 270,000  Other shareholder elected Board members NOK 170,000  Employee representatives NOK 15,000

For the shareholder elected Board members, remuneration was calculated for the period from the election at the extraordinary general meeting in August 2011 and up to the annual general meeting 2012, while the remuneration for the employee representatives was calculated from the election in October 2011 and up to the annual general meeting 2012.

8.1.3 Loans and guarantees No loans or guarantees were, or have been, granted to members of the Board in 2011 or, at the time of this Prospectus, in 2012.

8.2 MANAGEMENT The Company’s executive management is responsible for the daily management and the operations of the Company and the Group. The Company’s business address serves as c/o address in relation to the management in the Company.

Below is an overview of the organisational structure of the Company:

Figure 8.1 Organisational structure of the Company

Board of Directors

Baard Schumann CEO

Haavard Rønning CFO

Trond Stensrud Anne G. Storaker Sverre Molvik Halvard Kverne MD Selvaag Bolig Sales & Marketing Project Director Project Director Director Modulbygg

Not part of Petter Cedell Jørgen Blix Group Development MD Meglerhuset mgt. but Director Selvaag report to CEO Anders Haavik MD Selvaag Pluss Serv.

The executive management is presented below:

Baard Schumann (born 1970), Chief Executive Officer Mr. Schumann has served as CEO of Selvaag Bolig since 2008. He has previously served as CEO of NCC Bolig AS, Marketing Director of Peab Bolig AS and Regional Manager of DnB Eiendom AS. Mr. Schumann holds a

bachelor degree as Graduate Economist and real estate agent from BI Norwegian Business School. Mr. Schumann is a Norwegian citizen.

Haavard Rønning (born 1973), Chief Financial Officer Mr. Rønning has served as finance manager and analyst with the Selvaag Group since 2004, and has been the CFO of Selvaag Bolig since 2008. Prior to joining the Selvaag Group he worked with PwC audit and corporate finance. Mr. Rønning holds a Master of Science degree in business and economics from BI Norwegian Business School. Mr. Rønning is a Norwegian citizen.

Petter Cedell (born 1964), Director Real Estate Investments Mr. Cedell’s responsibility is to identify new project possibilities for Selvaag Bolig. Mr. Cedell has broad experience from acquisitions and project development, as well as within project implementation with the Selvaag Group. Mr. Cedell has completed studies from Gjøvik Engineering College within building and construction and from BI Norwegian Business School in intermediate subject studies, as well as graduated from BI Norwegian Business School as real estate agent. Mr. Cedell is a Norwegian citizen.

Anne-Grethe Storaker (born 1954), Sales and Marketing Director Ms. Storaker has served as Director of sales and marketing in Selvaag Bolig since 2008 and in Selvaag Pluss from 2006 to 2008. She has previously been working as sales and marketing director in AF Gruppen ASA. Ms. Storaker has overall responsibility for sales and marketing of all Selvaag Bolig’s housing projects, and general marketing and marketing communications. Ms. Storaker has long and broad experience from property development, project management, sales and marketing. Ms. Storaker has completed three year diploma studies at Oslo University College. Ms. Storaker is a Norwegian citizen.

Halvard Kverne (born 1962), Project Director Mr. Kverne is primarily responsible for the development and execution of 50% of the Selvaag Bolig real estate development projects. He has broad experience from development and implementation of real estate projects both from the contractor and real estate developer side. Mr. Kverne has completed studies from NKI Engineering School within technical house construction, and business studies from BI Norwegian Business School, Business/Economic Institute. Mr. Kverne is a Norwegian citizen.

Sverre Molvik (born 1971), Project Director Mr. Molvik is primarily responsible for the development and execution of 50% of the Selvaag Bolig real estate development projects. He has more than ten years of experience within development and implementation of housing projects on the developer’s side. He has previously held the positions as Senior Vice President in Coor Service Management AS, Business Controller, Project Manager and Executive Vice President with Skanska Bolig AS and also as Regional Director with Peab Bolig AS. Mr. Molvik holds a bachelor degree of civil and structural engineering from University of Manchester, Institute of Science and Technology, UK, and holds in addition a Master of Business Administration degree from Webster University in Geneva, Switzerland. Mr. Molvik is a Norwegian citizen.

8.2.1 Executive shareholdings As of the date of this Prospectus, none of the members of the executive management holds, directly or indirectly, any shares, or any options or other rights to purchase or subscribe additional shares, in the Company.

8.2.2 Remuneration and benefits The table below shows the total remuneration to the executive management for the financial year 2011:

Name Position Ordinary Bonus paid Benefits Pension Total salary in 2011 in kind benefits remuneration Baard Schumann CEO 2,315,000 1,474,000 54,000 46,000 3,889,000 Haavard Rønning CFO 1,439,000 700,000 6,000 47,000 2,192,000 Peter Cedell Dir. Real Estate Inv. 1,020,000 200,000 6,000 49,000 1,275,000 Anne-Grethe Storaker Sales/ Marketing Dir. 997,000 300,000 6,000 52,000 1,355,000 Halvard Kverne1 Project Director 752,000 350,000 3,000 50,000 1,155,000 Sverre Molvik Project Director 1,413,000 - 6,000 47,000 1,466,000 1 Until June 2011, Mr. Kverne was partly hired out to Hansa Property Group AS as project director.

If the CEO’s employment is terminated by the Company, he shall have the right to salary and other remuneration (excluding bonus) for a period of 12 months after the end of the notice of termination.

Except for the above, no members of the administrative, management or supervisory bodies have entered into any service contracts with the Company or any of its subsidiaries providing for benefits upon termination of their employment.

8.2.3 Loans and guarantees No loans or guarantees were, or have been, granted to the executive management in 2011 or, at the time of this Prospectus, in 2012.

8.3 EMPLOYEES The Group did not recognise any salaries and personnel expenses in the years 2008 to 2009, as all staff were employed by Ole Gunnar Selvaag through a sole proprietorship and hired to the Group. The corresponding expenses have been recognised as other operating expenses in the statement of comprehensive income. The staffs were employed in the Group with effect from 1 January 2010. As of 31 December 2011 the Group had a total of 85 employees.

The Group currently has a total of 87 employees, whereof 42 are employed by the Company and 45 are employed by subsidiaries, hereunder 7 in Selvaag Bolig Modulbygg AS, 20 in Meglerhuset Selvaag, 11 in Selvaag Pluss Service AS, 6 in Selvaag Bolig Rogaland AS and 1 in Selvaag Bolig Vestfold AS.

8.3.1 Employee incentive schemes Except for the Employee Offering, as described in Section 5.7, there are currently no arrangements for involving the employees in the capital of the Group.

8.3.2 Pensions In accordance with the Norwegian Accounting Act Section 7-30a), the companies in Norway are required to have a company pension plan in line with the Act relating to occupational pensions (Norwegian: "lov om obligatorisk tjenestepensjon"), and the companies have a pension plan (defined contribution plan) that meets these requirements. All the members of the executive management were included in the defined contribution plan as of 31 December 2011. In addition, all the members of the executive management were included in the early retirement (AFP) plan. Accrued pension liability for each member of the executive management in the early retirement (AFP) plan, was less than five thousand NOK per person as of 31 December 2011.

8.4 CONFLICTS OF INTERESTS, ETC. Except for as described in Section 8.1.1, there are no potential conflicts of interests between any duties to the Company of the Board of Directors and the executive management, and their private interests and/or other duties.

None of the members of the administrative, management or supervisory bodies or any senior manager who is relevant to establishing that the issuer has the appropriate expertise and experience for the management of the issuer's business have been selected to their positions pursuant to an arrangement or understanding with major shareholders, customers, suppliers or others.

During the last five years preceding the date of this Prospectus, no member of the Board of Directors or the senior management has:

 any convictions in relation to indictable offences or convictions in relation to fraudulent offences;  received any official public incrimination and/or sanctions by any statutory or regulatory authorities (including designated professional bodies) or ever been disqualified by a court from acting as a member of the administrative, management or supervisory bodies of a company or from acting in the management or conduct of the affairs of any company; or  been declared bankrupt or been associated with any bankruptcy, receivership or liquidiation in his capacity as a founder, director or senior manager of a company.

Over the five years preceding the date of this document, the members of the Board and the senior management hold or have held the following directorships (apart from their directorships of the Company) and/or partnerships:

Board of Current directorships/ Previous Current Previous Directors partnerships directorships/ management management partnerships positions positions Olav Hindahl - Chairman of the Board of - Chairman of the - Group Director of - CEO of Selvaag Selvaag AS Selvaagbygg Board of Sealbay AS Selvaag Gruppen Forvaltning AS - Chairman of the Board of - Board member of AS Sealbay Invest AS Tatler AS - CEO Selbukt Invest - Chairman of the Board of - Board member of AS Ogs Holding AS Selvaag Internal - CEO Seltangen - Board member of Selvaag Shared Services AS Invest AS Prosjekt og Vedlikehold - Board member of AS Selvaag Forvaltning - Board member of AS Tjuvholmen KS - Board member of Tjuvholmen AS - Board member of Vestre Hovden Industrier AS - Board member of Tjuvholmen Butikk og Restaurant AS - Board member of Sealbay Eiendom Holding AS - Board member of Selvaag Eiendom AS - Board member of Selvaag Corporate AS - Board member of AS Selvaag Invest - Board member of Selvaag Self-Storage AS - Board member of Sealbay AS - Board member of Hovden Invest AS - Board member of Seltangen Invest AS - Board member of Selbukt Invest AS - Board member of Mulholland Holding AS - Board member of Betonmast Bygg AS - Board member of Kronprinsparets Humanitære Fond - Member i NHO Eierforum - Member of Norge- Amerikaforeningen - Deputy Board member of Bjart AS

Karsten - Chairman of the Board of - Chairman of the - Group Chief - Group Director of Bomann Jonsen Joboco AS Board of Selvaag Executive of Selvaag Gruppen - Board member of AS Self-Storage AS Selvaag Gruppen AS Selvaagbygg - Chairman of the AS - Board member of Selvaag Board of Selvaag Invest AS Invest AS - Board member of Selvaag - Chairman of the Eiendom AS Board of Selvaag - Board member of Selvaag Eiendom AS Self Storage AS - Chairman of the - Board member of Selvaag Board of Selvaag Prosjekt og Vedlikehold Forvaltning AS AS - Chairman of the - Board member of Board of Selvaag Skotfoss Bruk DA Internal Shared - Board member of Selvaag Services AS Corporate AS - Chairman of the - Board member of Wilbom Board of Incitia Invest AS Venture Capital AS - Board member of Sealbay - Chairman of the Eiendom Holding AS Board of Isolitt AS - Board member of Selvaag Polska Sp. z.o.o. - Board member of Agathon Inc. - Board member of Tulsa West Corp.

Anne Breive - Chairman of the Board of - Board member of - CFO Trelleborg - CFO Statnett SF Lundane Invest AS Skeie Drilling and Offshore AS - CFO Løvenskiold - Board member of TTS Production ASA Vækerø AS Group ASA - Board member of - Board member of Nemko Løvenskiold Handel AS AS - Board member of Sevan - Board member of Drilling ASA Fossum Eiendom AS - Board member of Vækerø Eiendom AS - Board member of Løvenskiold Eiendom AS - Board member of Bærums Verk AS - Board member of Løvenskiold Distribusjon AS - Board member of Lanidia AS

Wenche Kjølås - Chairman of the Board of - Board member of - Managing Director/ - CFO Grieg Grieg Group Resources PGS ASA Executive Director Logistics AS AS - Board member of Grieg Maturitas AS - CFO Kavli - Board member of Grieg Cermaq ASA Holding AS Gaarden AS - Board member of - Board member of Grieg Fossen AS Property AS - Board member of Q- - Board member of Meieriene AS NorWind AS - Board member of - Board member of Grieg O.Kavli AS Logistics AS - Member of the - Board member of Grieg General Assembly of Seafood ASA Sparebank-stiftelsen - Board member of DOF DnBNOR

ASA - Member of the - Board member of General Assembly of Jawendel AS Vesta ASA - Board member of Grieg Green AS

Ole Jarl - Chairman of the Board of - Chairman of the - CEO IKM Invest - Rettedal Olga Holding AS Board of Hansa AS - Chairman of the Board of Property Group AS - Managing Director IOR Technology AS Invest Management - Chairman of the Board of AS Elvebredden Utbygging - Managing Director AS Rettedal Prosjekt - Chairman of the Board of AS Randaberg Indutries AS - Chairman of the Board of Proplan AS - Chairman of the Board of Salte AS - Chairman of the Board of Malm Orstad AS - Chairman of the Board of Rettedal AS - Chairman of the Board of Rettedal Prosjekt AS - Board member of Forusbeen 24B AS - Board member of Randaberg Coating AS - Board member of Randaberg Maritime AS - Board member of Randaberg Technology AS - Board member of Randaberg Havnelager AS - Board member of Raynard Maritime AS - Board member of Ingenium Ventus AS - Board member of Skagen 4 AS - Board member of IKM Haaland Group AS - Board member of Stokkelandsmarka 79/57 AS - Board member of IKM Industrigravøren AS - Board member of IKM Haaland AS - Board member of Stokkelandsmarka Holding AS - Board member of Ingenium AS - Board member of Acona Wellpro Holding AS - Board member of Scanfarm AS - Board member of SAR Metall AS - Board member of

Skvadronveien 24 AS - Board member of Bjorhaugsletta 22-85 AS - Board member of Ingenium Stavanger AS - Board member of IKM Industri-Invest AS - Board member of Ingenium Process Solutions AS - Board member of Frontline Gran Canaria AS - Board member of Ljosheimveien 3 AS - Board member of Tananger Næringspark AS - Board member of Hinnaverket Eiendom AS - Board member of Tankbåtveien 1 AS - Board member of Ljosheimveien Finans AS - Board member of IKM Eiendom AS - Board member of Målebygget AS - Board member of Invest Management AS - Board member of Aplittfordeling AS

Gisele - Board member of - Board member of - CEO Eksportfinans - CEO Statens Marchand Gjensidige Forsikring Norske Skogindustrier ASA Pensjonskasse ASA ASA - Board member of GIEK - Board member of Kredittforsikring AS Oslo Børs VPS - Board member of Holding ASA Stiftelsen - Board member of Flyktningenhjelpen Oslo Børs ASA - Board member of - Board member of Eiendomsspar AS Fornebu Utvikling - Board member of Victoria ASA Eiendom AS - Board member of Kommunekreditt Norge AS - Board member of Oslo Clearing ASA - Board member of Pensjonsordningen for Apotekvirksomhet

Christopher - - - - Brunvoll Anne-Kari - - - - Drønen Mathiesen

Management Current directorships/ Previous Current Previous partnerships directorships/ management management partnerships positions positions Baard - Board member of - - - CEO NCC Schumann Selvaag Bolig Bolig AS Rogaland AS - Regional - Board member of Director NCC Elesco AS Bolig AS - Board member of - COO AS Asker og Bærum Selvaagbygg lokalradio AS - Board member of Media Ventures AS

Haavard - Board member of - Board member of - - Rønning Brødrene Raastad AS Tatler AS

Petter Cedell - - Board member of - - Byggeområdets Utvikling AS

Anne-Grethe - - - - Sales & Storaker Marketing Director AF Eiendom

Halvard - - - - Kverne

Sverre Molvik - Chairman of the Board - Board member of - - Executive Vice of Masorm AS Skanska Bolig AS President/CEO - Chairman of the Board of Skanska of Mastiago AS Bolig AS - Board member of Sundt Barn AS - Board member of Hakkespetten Barnehage AS - Board member of Katta Barnehage AS - Board member of Project Management International AS

8.5 CORPORATE GOVERNANCE 8.5.1 The Norwegian Code of Practice for Corporate Governance From the time of Listing, the Company will be subject to the Norwegian Code of Practice for Corporate Governance (the “Code”) issued by the Norwegian Corporate Governance Board on 21 October 2010, including the amendments to the Code as of 20 October 2011.

The Board recognises the importance of good corporate governance and in offering high standards of accountability to the Company’s shareholders and business partners. On 21 March 2012, the Board resolved that

the Company shall adhere to the principles of the Code, as a “comply or explain” guideline. The Company endeavours to comply with the Code, and generally to maintain high standards of corporate governance. Further to this, the Company has established procedures for practice of corporate governance in accordance with the recommendations in the Code.

The Company’s corporate governance principles are based on, and comply with, the Code.

In accordance with the Oslo Børs’ continuing obligations for stock exchange listed companies, the Company will prepare annual reports of the Company’s corporate governance policy, hereunder an explanation of any deviation from the Code. The first report has been prepared in connection with the annual report for 2011.

The Board has adopted relevant corporate governance policies for the Company, which have been made available on www.selvaagbolig.no.

For information of the independence of the Board, please refer to Section 8.1.1.

8.5.2 Nomination Committee The Company has established a nomination committee in accordance with its Articles of Association. The provisions regarding the nomination committee was implemented by the general meeting held 30 August 2011. The same general meeting adopted instructions for the nomination committee. The nomination committee shall consist of three persons, and be elected for a term of two years at a time. The members of the nomination committee were elected by the general meeting held 19 April 2012, and the committee currently consists of the following three persons:

 Steinar Mejlænder-Larsen  Bjørn Havnes  Helene Langlo Volle

Pursuant to the Articles of Association of the Company, the nomination committee shall give recommendations to the general meeting on election of, and compensation to, Board members. The proposal shall be justified. The general meeting elects the members of the nomination committee, including the chairman of the committee. The nomination committee shall give the general meeting recommendations on election of members to the nomination committee. The general meeting determines compensation to the members of the nomination committee.

8.5.3 Audit Committee The Company has established an audit committee, in accordance with the Norwegian Public Limited Companies Act, that shall consist of two or three members elected by and amongst the members of the Board. The members of the audit committee are appointed by the Board for a period of two years, or until they resign their position as a member of the Board. The committee currently consists of the following three persons:

 Karsten Bomann Jonsen  Anne Breive  Wenche Kjølås

The audit committee is a preparatory and advisory committee for the Board. The audit committee shall; (a) prepare the supervision of the Company’s financial reporting process for the Board, (b) monitor the systems for internal control and risk management, (c) have continuous contact with the Company’s auditor regarding the auditing of the Company’s annual accounts, and (d) review and monitor the independence of the Company’s auditor, including in particular to which extent other services than audit services having been rendered by the auditor or the audit firm represents a threat against the independence of the auditor.

The Company has adopted separate instructions for the audit committee, setting out further details on the duties, composition and procedures of the audit committee.

8.5.4 Remuneration Committee The Company has established a remuneration committee that shall consist of two or three members elected by and amongst the members of the Board. The members of the remuneration committee shall be independent of the Company’s executive management. The members of the remuneration committee are appointed by the

Board for a period of two years, or until they resign their position as a member of the Board. The committee currently consists of the following two persons:

 Olav H. Selvaag  Ole Jarl Rettedal

The remuneration committee is a preparatory and advisory committee for the Board that shall prepare matters for the Board’s consideration and decisions regarding the remuneration of, and other matters pertaining to, the Company’s executive management. The remuneration committee shall assist the Board in resolving principles and strategies for remuneration of the Company’s executive management. The Company’s remuneration committee reports and makes recommendations to the Board, but the Board retains the responsibility for implementing such recommendations.

The Company has adopted separate instructions for the remuneration committee, setting out further details on the duties, composition and procedures of the remuneration committee.

8.5.5 Board and Management Practices The Company has adopted appropriate routines and guidelines to ensure proper distribution and handling of information, internally in the Group and for the executive management and the Board of Directors of the Company, in addition to distribution of information to the market. The Company aims to carry out good corporate governance and has adopted company corporate governance principles and ethical guidelines and management principles, as well as insider manuals, an investor relations policy, rules of procedures for the Board of Directors, and instructions to the CEO from the Board, instructions for the nomination committee, instructions for the audit committee and instructions for the remuneration committee. The two latter are described in Sections 8.5.3 and 8.5.4 above.

For further information on the executive management and the Board, please refer to Sections 8.1 and 8.2.

8.6 RELATED PARTY TRANSACTIONS Receivables, liabilities and transactions between Selvaag Bolig and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation.

In addition to agreements entered into between the Company and Selvaag Gruppen AS, as described in Section 16.2, the following significant related party transactions have occurred in 2011:

On 4 May 2011, the Group entered into an agreement to transfer all ownership interests in the wholly owned subsidiary Selvaaghus AB to Selvaag Eiendom AS, a subsidiary of Selvaag Gruppen AS, for a consideration of NOK 7.4 million.

On 24 May 2011, a share capital increase of NOK 100 million in the Company was approved. The increase was carried out through conversion of debt to Selvaag Gruppen AS, and was registered in the Company register on 18 June 2011.

In June 2011, the Group disposed of the "Ekely" property at Skøyen to Sealbay AS for NOK 5 million. Sealbay AS is controlled by two of the board members in the Company at the time, Olav Hindahl Selvaag and Gunnar Frederik Selvaag.

Upon the Company’s withdrawal from the Selvaag Group cash pool in 2011, a net negative account balance of NOK 170 million in the Selvaag Group cash pool was converted into current interest-bearing liabilities to Selvaag Gruppen AS. NOK 5 million was repaid following the disposal of the “Ekely” property and the Company entered into a NOK 165 million loan agreement with Selvaag Gruppen AS, as lender, dated 23 August 2011 to formalise these liabilities. The loan agreement matures on Selvaag Gruppen AS' demand. This loan is set to be repaid in full in relation to the Offering as further described in Section 5.1.

On 24 August 2011, the Company merged with Hansa Property and carried out a private placement directed to the owners in the limited partnership SPE KS. These transactions are described in further detail in Sections 6.1.4 and 6.1.5.

In agreement with the other shareholders in Selvaag Bolig Rogaland AS, the Company assumed 37.5 % of the shares in the company. The transfer of control was completed on 25 November 2011. The transaction is described in further detail in Section 6.1.6.

During 2011, the Group has made capital contributions to associated companies of NOK 25.5 million to Hansa Property and of NOK 64.7 million to SPE KS.

In prior years, the following related party transactions and balances are relevant:

Transfer of employees Until 1 January 2010, all employees in the Group were employed by Ole Gunnar Selvaag through a sole proprietorship, Selvaag Bygg. The consultancy expenses paid to Selvaag Bygg amounted to NOK 22.6 million in 2008 and NOK 35.9 million in 2009.

In January 2010, the Group entered into a management agreement with Hansa Property. The Group has according to this agreement provided management services to Hansa Property amounting to NOK 3.6 million in 2010. At 31 December 2010, amounts receivable from Hansa Property were NOK 0.3 million.

Provision for liabilities regarding Hansa Selvaag companies A provision was made for liabilities regarding dismantlement of buildings and restoration of land based on an agreement with six Hansa Selvaag joint venture companies in which the Group's ownership interest was 30 % before the merger with Hansa Property. The provision amounted to NOK 90.8 million at 31 December 2009 and NOK 83.1 million at 31 December 2010. As at 31 December 2011 the provision is eliminated on consolidation as the Hansa Selvaag companies have become subsidiaries of the Company.

Demerger - merger with AS Selvaagbygg In 2009, a portion of the company AS Selvaagbygg was demerged and merged into the Group in exchange for a paid-in capital equity contribution of NOK 67.0 million. The net capital contribution consisted of ownership interests in associated companies, land and liabilities towards AS Selvaagbygg. At 31 December 2009, the Group's outstanding liability to AS Selvaagbygg for the land transferred was NOK 111.6 million.

Acquisition of Selvaag Boligmegling AS, Selvaag Boligutleie AS and Selvaag Eiendomsoppgjør AS In 2010, the Group purchased the three estate agencies Selvaag Boligmegling AS, Selvaag Boligutleie AS and Selvaag Eiendomsoppgjør AS from the Selvaag Group, for a consideration of NOK 9.8 million.

Please also refer to Note 23 to the financial statements for the years ended 31 December 2009 and 2010 (Appendix 6 and Appendix 5, respectively) and Note 23 to the financial statements for the year ended 31 December 2011 (Appendix 3). Except for the above there are no significant related party transactions entered into by the Company.

During the year 2011, Group entities entered into the following transactions with related parties:

(Amounts in NOK 1,000) 2011 Sales of goods and services Selvaag Gruppen AS (parent company) 976 Associated companies 23 750 Joint ventures 41 848 Other related parties (including subsidiaries of parent company) 1 677

Purchase of goods and services Selvaag Gruppen AS (parent company) (9 111) Other related parties (including subsidiaries of parent company) (157 735)

Financial income Selvaag Gruppen AS (parent company) - Joint ventures 5 310 Associated companies 704 Other related parties (including subsidiaries of parent company) -

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Financial expenses Selvaag Gruppen AS (parent company) (18 164)

The following receivables and liabilities, excluding the Selvaag Group cash pool, were outstanding as of 31 December:

(Amounts in NOK 1,000) 2011 Receivables Selvaag Gruppen AS (parent company) 284 Joint ventures *) - Associated companies *) 35 705 Other related parties (including subsidiaries of parent company) 2 400

Liabilities Selvaag Gruppen AS (parent company) (166 212) Other related parties (including subsidiaries of parent company) (39 479)

*) Receivables from joint ventures and associated companies in 2010 mainly consist of subordinated loans related to the Hansa Selvaag joint venture companies and Hansa Property Group AS.

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9. UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION

9.1 PURPOSE OF THE UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION AND BASIS FOR PREPERATION The unaudited Pro forma Condensed Income Statement shows how the business combination transactions of Selvaag Bolig ASA with Hansa Property and SPE KS in August 2011 and the acquisition of a controlling interest in Selvaag Bolig Rogaland AS in November 2011 might have affected Selvaag Bolig ASA’s Consolidated Income Statement for the year ended 31 December 2011 had they occurred on 1 January 2011. As these transactions occurred in the financial year 2011 they are reflected in full in the audited Consolidated Statement of Financial Position of Selvaag Bolig ASA as at 31 December 2011. The presentation of an unaudited Pro forma Condensed Statement of Financial Position as at 31 December 2011 is therefore not relevant.

The unaudited Pro forma Condensed Financial Information has been compiled for illustrative purposes only and addresses a hypothetical situation. Therefore, it does not represent the Group’s actual results as they would have been had the pro forma adjustment transactions occurred at an earlier date, and is not representative of the results of operations for any future periods. It should be noted that there is greater uncertainty associated with unaudited Pro forma Condensed Financial Information than ordinary historical financial reporting. Investors are cautioned against placing undue reliance on this unaudited Pro forma Condensed Financial Information.

The unaudited Pro forma Condensed Financial Information does not include all of the information required for financial statements under International Financial Reporting Standards (“IFRS”) and should be read in conjunction with the audited consolidated financial statements of Selvaag Bolig ASA for the financial year, as included in Appendix 3 to this Prospectus.

The unaudited Pro forma Condensed Financial Information has been compiled in connection with the listing of the shares of the Company on Oslo Børs to comply with the Norwegian Securities Trading Act and the applicable EU regulations pursuant to Section 7-7 of the Norwegian Securities Trading Act.

It should be noted that the unaudited Pro forma Condensed Financial Information was not prepared in connection with an offering registered with the US Securities and Exchange Commission (“SEC”) under the Securities Act, and consequently is not compliant with the SEC’s rules on presentation of pro forma financial information. As such, US investors should not place undue reliance on the unaudited Pro forma Financial Information included in this Prospectus.

The assumptions underlying the pro forma adjustments applied to the historical financial information, for the purposes of compiling the unaudited Pro forma Condensed Financial Information, are described in the notes to the unaudited Pro forma Condensed Financial Information. These adjustments and the resulting unaudited Pro forma Condensed Financial Information have not been audited in accordance with Norwegian or any other generally accepted auditing standards.

The pro forma adjustments related to unaudited Pro forma Condensed Income Statement will all have continuing impact.

9.2 ACCOUNTING PRINCIPLES The consolidated financial statements of Selvaag Bolig ASA have been prepared on a basis consistent with IFRS as adopted by the EU. The accounting principles applied for Selvaag Bolig ASA are in accordance with those accounting principles outlined in Note 2 to the financial statements for the financial year 2011, as included in Appendix 3 to this Prospectus.

The unaudited Pro forma Condensed Financial Information for the Group has been compiled on a basis consistent with the accounting policies of Selvaag Bolig ASA. The unaudited Pro forma Condensed Financial Information for the Group does, however, not include all information required for financial statements under IFRS.

9.3 SOURCES OF THE UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION The unaudited Pro forma Condensed Income Statement for the year ended 31 December 2011 is based on the

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historical audited consolidated financial statements for Selvaag Bolig ASA for the year ended 31 December 2011 and on the unaudited internal financial reports of Hansa Property, SPE KS and Selvaag Bolig Rogaland AS. The audited consolidated financial statements for 2011 for Selvaag Bolig ASA are included in Appendix 3 to this Prospectus.

The historical financial information for Selvaag Bolig has been prepared in accordance with IFRS as adopted by the EU. The historical financial information for Hansa Property, SPE KS and Selvaag Bolig Rogaland AS have also been prepared in accordance with IFRS, as adopted by the EU, applying accounting principles that are consistent with those of Selvaag Bolig ASA.

PricewaterhouseCoopers AS, the Company’s appointed auditor, have issued an Independent Assurance Report on the unaudited Pro forma Financial Information for Selvaag Bolig ASA. The report is included in Appendix 12 to this Prospectus.

9.4 FULL-YEAR UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION The tables below present the unaudited Pro forma Condensed Financial Information for the period described in Section 9.1 “Purpose of the Unaudited Pro forma Condensed Financial Information and Basis for Preparation”. The pro forma adjustments (columns entitled “Pro forma adjustments (unaudited)”) are described in Section 9.6 “Unaudited Pro forma Adjustments” below.

9.5 UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2011

Historical Historical Historical Historical Historical Pro Selvaag Hansa Selvaag Selvaag Hansa Basis for forma Bolig Property Bolig Pluss Selvaag pro forma adjust- Group Group AS Rogaland Eiendom (IFRS) – financial ments Pro forma (IFRS) (IFRS) AS (IFRS) KS (IFRS) (un- information (un- (un- NOK '000 (audited) (unaudited) (unaudited) (unaudited) audited) (un-audited) audited) audited) Note

1 Jan – 31 1 Jan – 24 1 Jan – 30 1 Jan – 24 1 Jan – 24 1 Jan – 31 1 Jan – 31 Dec 2011 Aug 2011 Nov 2011 Aug2011 Aug 2011 Dec 2011 Dec 2011

Sales revenues 251,885 6,544 100,000 2,634 57,040 418,103 (60,598) 357,505 Other revenues 57,937 14,148 3,167 2,283 - 77,536 (6,330) 71,206 Total revenues 309,822 20,692 103,167 4,917 57,040 495,638 (66,928) 428,710 1

Project expenses (199,002) (15,645) (98,306) (19,008) (46,884) (378,845) 49,622 (329,223) 2 Salaries and personnel expenses (76,319) (11,183) 2,347 - - (85,155) - (85,155) Depreciation and amortisation (5,770) (1,080) (1,129) (808) - (8,787) (13,800) (22,587) 3 Other operating expenses (96,665) (16,752) (6,164) (9,363) (8,154) (137,098) 14,540 (122,558) 4 Other gains (losses), net (299) - - 1,000 - 701 - 701 Share of income (losses) and gains (losses) on disposal from associated companies and joint ventures 75,373 2,334 (115) 1,589 - 79,180 15,234 94,415 5 Total operating expenses (302,682) (42,326) (103,367) (26,591) (55,038) (530,003) 65,596 (464,407)

Operating profit (loss) 7,140 (21,634) (199) (21,674) 2,002 (34,365) (1,331) (35,696)

Financial income 19,447 4,471 88 601 92 24,699 (8,001) 16,698 6 Financial expenses (55,562) (22,183) 141 51 (284) (77,836) 2,374 (75,462) 6 Net financial expenses (36,115) (17,711) 229 652 (192) (53,137) (5,627) (58,764)

Profit (loss) before income taxes (28,975) (39,345) 30 (21,022) 1,810 (87,502) (6,958) (94,460)

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Income tax (expense) income 23,265 8,380 (2,508) 5,886 (507) 34,516 6,214 40,729 7 Profit (loss) for the period (5,710) (30,966) (2,478) (15,135) 1,303 (52,987) (744) (53,731)

9.6 UNAUDITED PRO FORMA ADJUSTMENTS The pro forma adjustments pertain to the column “Pro forma adjustments (unaudited)” contained in the table in Section 9.5 above. The figures are prepared based on the assumption that the business combination transactions with Hansa Property, SPE KS and Selvaag Bolig Rogaland AS have taken place as if they had occurred at on 1 January 2011 for the purposes of the unaudited Pro forma Condensed Income Statement. Each adjustment necessary to illustrate the effect of this has been described below. The business combination transactions are described in chapter 12.6.1, and further information on the business combinations is contained in note 6 to the consolidated financial statements of Selvaag Bolig for 2011 (Appendix 3).

Prior to the transactions, Hansa Property held a 70 % interest in the Hansa Selvaag portfolio of companies, whilst Selvaag Bolig held a 30 % interest. Both investors applied the equity method in accounting for their interest. Following the merger with Hansa Property, Selvaag Bolig controls 100 % of the shares in the Hansa Selvaag portfolio and the relevant companies must consequently be consolidated. This is reflected in the unaudited Pro forma Financial Information. The Hansa Selvaag portfolio consists of the six companies included in Selvaag Bolig Øst AS (as included in the organization chart in figure 6.1).

The Company has during 2011 re-financed most of its existing debt with a facilities agreement. This refinancing is not adjusted for on a pro forma basis, as it is not directly related to the transactions to acquire Hansa Property and SPE KS. Refer to chapter 12 of this Prospectus for further details regarding funding.

Note 1 Sales revenues and Other revenues An adjustment has been made in the unaudited Pro forma Financial Information to eliminate transactions between Selvaag Bolig and companies in the Hansa Selvaag portfolio. As such transactions, following the merger between Selvaag Bolig and Hansa Property, will be internal to the Group; an adjustment is made for pro forma purposes to reflect this. Any transactions involving Hansa Property, SPE KS and Selvaag Bolig Rogaland AS have also been eliminated in the unaudited Pro forma Financial Information.

The pro forma adjustments made to sales revenues can be summarized as follows:

Sales revenues (NOK’000) Year ended 31 December 2011 Elimination of inter-company transactions (60,598) Pro forma adjustment – sales revenues (60,598)

Other revenues (NOK’000) Year ended 31 December 2011 Elimination of inter-company transactions (management fees) (6,330) Pro forma adjustment – other revenues (6,330)

Note 2 Project expenses An adjustment has been made in the unaudited Pro forma Financial Information to eliminate transactions between Selvaag Bolig and companies in the Hansa Selvaag portfolio. As such transactions, following the merger between Selvaag Bolig and Hansa Property, will be internal to the Group; an adjustment is made for pro forma purposes to reflect this. Any transactions involving Hansa Property, SPE KS and Selvaag Bolig Rogaland AS have also been eliminated in the unaudited Pro forma Financial Information.

The pro forma adjustments related to project expenses can be summarized as follows:

Project expenses (NOK’000) Year ended 31 December 2011 Elimination of inter-company transactions 49,622 Pro forma adjustment – project expenses 49,622

Note 3 Depreciation and amortisation In connection with the business combination of SPE KS, Hansa Property and Selvaag Bolig Rogaland AS, identifiable assets and liabilities have been recognised at the estimated fair value on the date of the business combination. The measurement of identifiable assets and liabilities is based on provisional values determined by management, pending final valuations. On this basis, the trademark of “Selvaag Pluss” arising from the

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acquisition of SPE KS was valued at NOK 50 million and will be amortised over an estimated useful life of 5 years from the date of the business combination. A pro forma adjustment of NOK 7.5 million is necessary to reflect the transaction as if it took place on 1 January 2011. A fair value adjustment of NOK 35.7 million was made related to certain property leases within Hansa Property Group. The resulting asset is amortised over 5 years from the date of acquisition. In order to reflect the transaction as if it took place on 1 January 2011 a pro forma adjustment of NOK 6.3 million is necessary.

Depreciation and amortisation (NOK’000) Year ended 31 December 2011 Amortisation of trademark 7,500 Amortisation of leases 6,300 Pro forma adjustment – depreciation and amortisation 13,800

Further information on the business combinations is contained in note 6 to the Consolidated financial statements of Selvaag Bolig for 2011 (Appendix 3).

Note 4 Other operating expenses An adjustment has been made in the unaudited Pro forma Financial Information to eliminate transactions between Selvaag Bolig and companies in the Hansa Selvaag portfolio. As such transactions, following the merger between Selvaag Bolig and Hansa Property, will be internal to the Group; an adjustment is made for pro forma purposes to reflect this. Any transactions involving Hansa Property, SPE KS and Selvaag Bolig Rogaland AS have also been eliminated in the unaudited Pro forma Financial Information.

The pro forma adjustments to other operating expenses can be summarized as follows:

Other operating expenses (NOK’000) Year ended 31 December 2011 Elimination of inter-company transactions 14,540 Pro forma adjustment – other operating expenses 14,540

Note 5 Share of income from associated companies and joint ventures Following the acquisition transactions Selvaag Bolig has merged with Hansa Property and control 100 % of the shares in the Hansa Selvaag portfolio, SPE KS and Selvaag Bolig Rogaland AS. The relevant companies are consequently consolidated from the date of control. The amounts reflected in share of income (losses) from associated companies and joint ventures, applying the equity method, are consequently reversed on a pro forma basis. The amounts reversed are detailed as follows:

Share of income (losses) from associated companies and joint ventures Year ended 31 December 2011 (NOK’000) Selvaag Bolig interest in Hansa Property Group (1 Jan – 24 Aug 2011) 9,209 Selvaag Bolig interest in Hansa Selvaag companies (1 Jan – 24 Aug 2011) (438) Hansa Property Group interest in Hansa Selvaag companies (1 Jan – 24 Aug 2011) (1,064) Selvaag Bolig interest in SPE KS (1 Jan – 24 Aug 2011) 5,979 Selvaag Bolig Rogaland AS (1 Jan – 30 Nov 2011) 1,549 Pro forma adjustment – reversal of share of income (losses) from associated 15,234 companies and joint ventures

Note 6 Financial income and financial expenses Interest charges related to loans given from Selvaag Bolig to companies within the Hansa Selvaag portfolio and to Selvaag Bolig Rogaland AS have been eliminated for the purposes of the unaudited Pro forma Condensed Financial Information, as these are transactions internal to the Group following the merger between Selvaag Bolig and Hansa Property and the acquisition of Selvaag Bolig Rogaland AS. Additionally, the acquisition of Selvaag Bolig Rogaland AS involved a cash consideration of NOK 40 million (NOK 30 million payable at the time of acquisition and NOK 10 million payable in 2012).The pro forma effect is summarized as follows:

Financial income and financial expenses (NOK’000) Year ended 31 December 2011 Financial income (reduction) – inter-company elimination (8,001) Financial expenses (increase) - notional interest charge related to financing of acquisition of Selvaag Bolig Rogaland AS (1,852) Financial expenses (reduction) 4,226 Pro forma adjustment – net financial income and expenses (5,627)

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Note 7 Income taxes The pro forma effect on income tax expense is summarized as follows:

Income tax (expense) income (NOK’000) Year ended 31 December 2011 Income tax on net internal gains 1,831 Income tax on notional interest charge related to financing of acquisition of Selvaag Bolig Rogaland AS 519 Income tax on amortisation of trade mark and lease contracts 3,864 Pro forma adjustment – income tax 6,214

9.7 AUDITOR’S REPORT ON UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION PricewaterhouseCoopers AS, the Company’s appointed auditor, have issued an Independent Assurance Report on the unaudited Pro forma Financial Information for Selvaag Bolig ASA. The report is included in Appendix 12 to this Prospectus.

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10. OPERATING AND FINANCIAL INFORMATION

10.1 BASIS FOR PREPARATION The audited consolidated financial statements of Selvaag Bolig ASA for the financial year 2011, 2010 and 2009 have been prepared in accordance with IFRS and IFRS Interpretations Committee (“IFRIC”) interpretations, as approved by EU. The unaudited condensed consolidated financial statements for the three months ended 31 March 2012, with comparable figures for the three months ended 31 March 2011, have been prepared in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. Going forward, the financial reporting of the Company will continue to be prepared on a basis consistent with IFRS.

The financial statements are presented in NOK and amounts are rounded to the nearest thousand, except when otherwise indicated.

The historical consolidated financial statements included in Section 10.3 “Consolidated historical financial information” have been derived from the Company’s consolidated financial statements for 2011, 2010 and 2009. The consolidated financial statements have been audited and are enclosed to this Prospectus as Appendix 3 and Appendix 4. The unaudited condensed consolidated interim financial information for the three months ended 31 March 2012, as set forth in Section 10.3 “Condensed historical financial information”, has been derived from the Company’s interim report, which is enclosed to this Prospectus as Appendix 2.

10.2 ACCOUNTING POLICIES Please refer to note 2 to the financial statements for 2011, as enclosed in Appendix 3, for the full summary of the Company’s accounting policies.

10.3 CONSOLIDATED HISTORICAL FINANCIAL INFORMATION 10.3.1 Consolidated Statements of Comprehensive Income

Three months ended Year ended IFRS IFRS IFRS IFRS IFRS 31 March 2012 31 March 2011 31 December 31 December 31 December NOK '000 (unaudited) (unaudited) 2011 (audited) 2010 (audited) 2009 (audited)

Sales revenues 178,426 36,787 251,885 357,468 330,414 Other revenues 13,545 4,411 57,937 21,662 23,632

Total revenues 191,971 41,198 309,822 379,130 354,046 Project expenses (136,032) (20,404) (199,002) (219,127) (211,770) Salaries and personnel expenses (15,389) (15,534) (76,319) (51,202) - Depreciation (5,174) (97) (5,770) (491) (339) Other operating expenses (26,457) (11,790) (96,665) (43,249) (92,821) Other gain (loss), net - 990 (299) (25) 833 Share of income (losses) and gains (losses) on disposal from associated companies and joint ventures 7,431 (176) 75,373 (44,310) (13,783) Total operating expenses (175,621) (47,011) (302,682) (358,404) (317,880) Operating profit (loss) 16,350 (5,813) 7,140 20,726 36,166 Financial income 2,441 4,655 19,447 13,327 11,715 Financial expenses (18,987) (5,227) (55,562) (36,583) (24,843) Net financial expenses (16,546) (572) (36,115) (23,256) (13,128) Profit (loss) before income taxes (196) (6,385) (28,975) (2,530) 23,038 Income tax (expense) income 6,080 2,160 23,265 (13,793) (20,568) Profit (loss) for the period 5,884 (4,225) (5,710) (16,323) 2,470

Other comprehensive income Foreign currency translation (3) (9) 4 (74) 1,506 Total comprehensive income for the period 5,881 (4,234) (5,706) (16.397) 3,976

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Profit (loss) attributable to Shareholders of the Company 6,007 (4,225) (4,694) (16,323) 2,470 Non-controlling interest (123) - (1,016) - - Total comprehensive income for the period attributable to: Shareholders of the Company 6,004 (4,234) (4,690) (16,397) 3,976 Non-controlling interest (123) - (1,016) - -

Earnings per share for profit (loss) attributable to shareholders of the Company: Earnings per share (basic and diluted) – in NOK 0.09 (42,249) (0. 15) (163,230) 24,700

10.3.2 Consolidated Statements of Financial Position

IFRS IFRS IFRS IFRS 31 March 2012 31 December 2011 31 December 2010 31 December 2009 NOK '000 (unaudited) (audited) (audited) (audited) ASSETS Non-current assets Deferred tax assets - - 3,847 9,598 Goodwill 389,183 389,183 7,007 - Other intangible assets 85,620 90,163 - - Property, plant and equipment 5,811 5,642 3,774 3,054 Investments in associated companies and joint ventures 149,137 141,707 371,452 482,004 Loans to associated companies and joint ventures 35,505 35,500 240,027 215,034 Other non-current assets 47,385 36,784 - - Total non-current assets 712,641 698,979 626,107 709,690

Current assets Inventory property 4,494,223 4,211,025 365,822 452,302 Trade receivables 145,625 31,436 8,278 45,211 Other current receivables 80,311 88,091 68,438 97,620 Cash and cash equivalents 311,836 395,207 13,525 4,328 Total current assets 5,031,995 4,725, 759 456,063 599,461

TOTAL ASSETS 5,744,636 5,424,738 1,082,170 1,309,151

EQUITY AND LIABILITIES Equity Equity attributable to shareholders of the Company 1,310,202 1,304,198 322,042 225,276 Non-controlling interest 6,338 6,461 - - Total equity 1,316,540 1,310,659 322,042 225,276

Liabilities Non-current liabilities Pension obligations 372 327 533 - Deferred tax liabilities 7,819 13,934 - - Provisions 92,112 92,112 84,364 85,668 Other non-current non-interest bearing liabilities 29,565 28,304 - - Non-current interest-bearing liabilities 2,495,393 2,376,300 - 13,900 Total non-current liabilities 2,625,261 2,510,977 84,897 99,568

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Current liabilities Current interest-bearing liabilities 1,317,891 1,189,628 627,901 714,720 Trade payables 129,962 148,682 9,090 14,497 Current income taxes payable - - - 92 Provisions - - - 7,700 Other current non-interest-bearing liabilities 354,982 264,792 38,240 247,298 Total current liabilities 1,802,835 1,603,102 675,231 984,307 Total liabilities 4,428,096 4,114,079 760,128 1,083,875

TOTAL EQUITY AND LIABILITIES 5,744,636 5,424,738 1,082,170 1,309,151

10.3.3 Consolidated Statements of Cash Flows

Three months ended Year ended IFRS IFRS IFRS IFRS IFRS 31 March 2012 31 March 2011 31 December 31 December 31 December NOK '000 (unaudited) (unaudited) 2011 (audited) 2010 (audited) 2009 (audited)

Profit (loss) before income taxes (196) (6,385) (28,975) (2,530) 23,038 Income taxes paid - - - - - Depreciation and amortisation 5,174 97 5,770 491 339 Other net (gains) losses - (990) 299 25 (833) Share of (income) losses and (gains) losses on disposal from associated companies and joint ventures (7,431) 176 (75,373) 44,310 13,783 Change in inventory property (283,198) (2,218) (510,572) 86,964 126,199 Change in trade receivables (114,189) (36,759) (42,624) 42,335 (38,583) Change in trade payables (18,721) (2,685) 74,435 (7,730) (4,062) Changes in other working capital assets 3,444 5,637 53,219 57,976 5,453 Changes in other working capital liabilities 90,322 32,216 168,959 (193,261) (56,292) Net cash flow from operating activities (324,795) (10,911) (354,862) 28,580 69,042

Proceeds from disposal of tangible and intangible fixed assets - - - - 6,299 Payments for acquisition of tangible and intangible fixed assets (800) (151) (151) (624) (9) Proceeds from disposal of operations and subsidiaries, net of cash disposed of - - 17,404 - - Payments for acquisition of businesses and subsidiaries, net of cash acquired - - 251,370 (164) 1,647 Proceeds from disposal of associated companies and joint ventures - - - - 5,000 Payments for acquisition of associated companies and joint ventures - (37,121) (90,156) (11,790) (75,000) Proceeds from disposal of other investments and repayments on loans given - - - - 31,466 Payments for acquisition of other investments and repayments of loans given (5,132) (6,460) (147,265) (24,993) - Dividends and distributions from associated companies and joint ventures - 435 1,650 15,671 44,435 Net cash flow from investing activities (5,932) (43,297) 32,852 (21,900) 13,838

Proceeds from borrowings 266,625 - 1,402,499 - 13,900 Repayments of borrowings (91,105) - (356,576) (25,714) - Net change in bank overdraft 71,836 62,039 (444,001) (75,005) (600,321) Proceeds from share issue - - 101,770 - - Proceeds from group contributions - - - 141,536 500,000 Payments of group contribution - - - (38,300) -

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Net cash flow from financing activities 247,356 62,039 703,692 2,517 (86,421)

Net change in cash and cash equivalents (83,371) 7,831 381,682 9,197 (3,541) Cash and cash equivalents at the beginning of the period 395,207 13,525 13,525 4,328 7,869 Cash and cash equivalents at the end of the period 311,836 21,356 395,207 13,525 4,328

10.3.4 Consolidated Statements of Changes in Equity Equity attributab le to share- Non- Other Cumulative holders of controll- Share Share paid-in translation Other Retained the ing Total NOK '000 capital premium capital differences reserves earnings Company interests equity

Equity at 1 January 2012 136,353 957,938 699,132 1,153 3,528 (493,906) 1,304,198 6,461 1,310,659

Total comprehensive income for the period: Profit (loss) for the period - - - - - 6,007 6,007 (123) 5,884 Other comprehensive income for the period - - - (3) - - (3) - (3) Equity at 31 March 2012 136,353 957,938 699,132 1,150 3,528 (487,899) 1,310,202 6,338 1,316,540

Equity at 1 January 2011 159 7,286 699,132 1,149 3,528 (389,212) (322,042) - (322,042)

Transactions with owners:

Issue of shares related to business combinations 53, 802 933, 432 - - - - 987,234 - 987,234 Purchase of treasury shares related to business combinations (21) (367) (388) (388) Conversion of liabilities to equity 82,413 17,587 - - - - 100,000 - 100,000 Group contribution given - - - - - (100,000) (100,000) - (100,000) Business combinations ------7,477 7,477

Total comprehensive income for the period: Profit (loss) for the period - - - - - (4,694) (4,694) (1,016) (5,710) Other comprehensive income for the period - - - 4 - - 4 - 4 Equity at 31 December 2011 136,353 957,938 699,132 1,153 3,528 (493,906) 1,304,198 6,461 1,310,659

Equity at 1 January 2010 159 7,286 560,546 1,223 1,375 (345,313) 225,276 - 225,276

Transactions with owners:

Group contribution received - - 131,000 - - - 131,000 - 131,000 Group contribution received (after taxes) - - 7,586 - - - 7,586 - 7,586 Group contribution received (after taxes) - - - - - (27,576) (27,576) - (27,576) Equity adjustments in associated companies and joint ventures - - - - 2,153 - 2,153 - 2,153

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Total comprehensive income for the period: Profit (loss) for the period - - -- - (16,323) (16,323) - (16,323) Other comprehensive income for the period - - - (74) - - (74) - (74) Equity at 31 December 2010 159 7,286 699,132 1,149 3,528 (389,212) 322,042 - 322,042

Equity at 1 January 2009 100 900 - (283) (5,243) (347,783) (352,309) - (352,309)

Transactions with owners:

Increase of paid-in capital as contribution in merger transaction 59 6,386 60,546 - - - 66,991 - 66,991 Group contribution received - - 500,000 - - - 500,000 - 500,000 Transfer between paid-in equity and other equity ------Equity adjustments in associated companies and joint ventures - - - - 6,618 - 6,618 - 6,618

Total comprehensive income for the period: Profit (loss) for the period - - - - - 2,470 2,470 - 2,470 Other comprehensive income for the period - - - 1,506 - - 1,506 - 1,506 Equity at 31 December 2009 159 7,286 560,546 1,223 1,375 (345,313) 225,276 - 225,276

10.4 SEGMENT INFORMATION The main business of the Group is development and sales of residential property primarily in and around large cities in Norway and Sweden. Geographically, the Company’s prime focus is the Greater Oslo area, Stavanger, Bergen and Stockholm. Following the business combinations with Hansa Property, SPE KS and the acquisition of the remainder of the shares in Selvaag Bolig Rogaland AS, the management of the group is carried out in the following operating segments, based on geographical location:

1) Real estate development Greater Oslo; 2) Real estate development Rest of Norway; and 3) Real estate development Other Countries.

These three operating segments are expected to grow as the Company develops its project portfolio. In the audited consolidated financial statements for 2011 (note 4), the segment information for 2010 and 2011 has been restated to reflect the new operating segments.

Rental income from commercial property (described in section 6.3.5), land and completed residential units, as well as income from commercial development are also included in the operating segments under Real estate development.

In prior periods, the group also presented the operating segments Modules and Estate Agent. For 2011 onwards these business areas are included in “Other”. Also included in “Other” are unallocated income and expenses.

Selvaag Bolig presents the segment information using the percentage of completion method. Revenues and costs recognised are based on the costs incurred as a proportion of total estimated costs attributable to a project and include a profit element. In the consolidated statement of comprehensive income, revenues are recognised on a completed contract basis, which entails that revenue is recognised at the time of transfer of risks and control of the property, being the point of delivery of the units to end customers.

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Figure 10.1: Segment reporting post Offering and Listing Real estate development: Other: Segment: 1) Greater Oslo 2) Rest of 3) Other 4) Modules 5) Estate Agent 6) Other Norway Countries Description: Oslo, Akershus, Rest of Other Supply of Real estate agency The remainder of Buskerud, Norway Countries residential operations; the Group’s Østfold and houses brokerage, operations incl. Vestfold based on settlement, sales Selvaag Pluss, modules and rental Service and group overhead

10.5 SIGNIFICANT CHANGES IN FINANCIAL OR TRADING POSITION AFTER 31 MARCH 2012 Except for transactions described in this Prospectus, there have been no significant changes in the financial or trading position of the Group since 31 March 2012.

10.5.1 Financial targets See Section 6.4.3 “Financing and return strategy” for a description of the Company financial targets.

10.6 KEY FINANCIAL FIGURES

Three months ended Year ended IFRS IFRS 31 March IFRS IFRS IFRS 31 March 2012 2011 31 December 2011 31 December 2010 31 December 2009 NOK '000 (unaudited) (unaudited) (audited) (audited) (audited)

Total revenues 191,971 41,198 309,822 379,130 354,046 Operating profit (loss) 16,350 (5,813) 7,140 20,726 36,166 Profit (loss) for the period 5,884 (4,225) (5,710) (16,323) 2,470 Earnings per share (NOK) 0.09 (42,249) (0. 15) (163,230) 24,700

Net cash flow (83,371) 7,831 381,682 9,197 (3,541) Current and non-current interest bearing debt 3,813,284 689,940 3,565,928 627,901 728,620 Total assets 5,744,636 1,169,508 5,424,738 1,082,170 1,309,151 Total Equity 1,316,540 317,809 1,310,659 322,042 225,276 Equity ratio (%) 23% 27% 24% 30% 17%

10.7 STATUTORY AUDITOR The Company’s statutory auditor is PricewaterhouseCoopers AS (“PwC”), represented by state authorised public accountants who are members of Norwegian Institute of Public Accountants (DnR), and has been the Company’s auditor since its incorporation in April 2008. PricewaterhouseCoopers AS address is Dronning Eufemias gate 8, P.O. Box 748, NO-0106 Sentrum, Norway, and its organisation number is 987 009 713.

The annual financial statements for the Company, included in Appendices 3 through 6 to this Prospectus, for the financial years 2009, 2010 and 2011 have been audited by PwC. PwC has issued an audit report on these financial statements. The audit reports have been issued without qualifications or disclaimers.

Prior to the merger with Hansa Property, the private placement directed towards the owners in SPE KS and the acquisition of the remaining part of Selvaag Bolig Rogaland AS, the mentioned companies were audited by Deloitte AS, Ernst & Young AS and Deloitte AS, respectively. The auditors’ reports for the annual accounts for the financial years 2009 and 2010 for these companies were issued without qualifications or disclaimers.

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11. OPERATING AND FINANCIAL REVIEW You should read the following discussion of the financial condition and results of operations in conjunction with the financial statements included in this Prospectus. The following discussion may contain forward-looking statements that are based on current assumptions and estimates by the Company’s management regarding future events and circumstances. The Company’s actual results could differ materially from those expressed or implied by the forward-looking statements as a result of many factors, including those described in Section 3 “Risk factors”.

11.1 COMPARISON FOR THE FINANCIAL YEARS ENDED 31 DECEMBER 2011, 2010 AND 2009 11.1.1 Revenues Total revenues for the financial year 2011 amounted to NOK 309.8 million compared with NOK 379.1 million in 2010 and NOK 354 million in 2009. The revenues were generated from the following activities (the comments below relate to figures prepared based on the Group’s accounting principles under IFRS and do not correspond to the segment information presented in Note 4 to the financial statements for 2011.

The main business of the Group, following the transactions with Hansa Property, SPE KS and Selvaag Bolig Rogaland AS, is real estate development. The full effects of these transactions will materialise in the financial statements from 2012 onwards as the projects included in the business combinations were previously partially owned and consequently not consolidated. The financial statements for Hansa Property, SPE KS and Selvaag Bolig Rogaland AS for 2009 and 2010 (and 2011 for SPE KS) are included in Appendix 7, 8, 9, 10 and 11. For 2011, the financial information reflecting Hansa Property, SPE KS and Selvaag Bolig Rogaland AS on a full year basis is included in the unaudited pro forma financial information, as set out in Chapter 9. In 2011, the Group delivered 53 residential units through wholly owned projects in Moss and Kornmoenga in Oppegård, generating sales revenues of NOK 136.1 million. The Group sold land for NOK 5 million, whilst rental income, largely from properties awaiting construction start-up and from properties which are completed and ready for sale, generated NOK 23.6 million. Real estate development represented NOK 159.4 million of the revenues in 2010 of which NOK 104.3 million arose from sale of land, NOK 38.2 million from sale and delivery of apartments related to the Lørenlunden project, and NOK 16.9 million generated through rental income from properties awaiting construction start-up. In 2009, revenues from real estate development were NOK 317.5 million of which sales of land represented NOK 52.2 million, and NOK 243.3 million arose from sale and delivery of apartments related to the Lørenlunden and Løren 4C projects. Additionally, rental income from properties awaiting construction start-up was NOK 22 million.

The Group completed three external modules deliveries in 2011, generating sales revenues of NOK 75.6 million. This occurred largely in the first six months of the year. Following the business combinations transactions with Hansa Property, SPE KS and Selvaag Bolig Rogaland AS, module deliveries will mainly become internal to the group and thus cease as an external source of income and consequently as an operating segment. The modules segment generated revenues of NOK 154.6 million in 2010, mainly related to three external projects. The same three projects commenced in 2009 and contributed to NOK 8.3 million of revenues for 2009.

Estate agent operations (“Meglerhuset Selvaag”) were new to the Group from 2010 and contributed NOK 30.4 million to revenues during the first year of operation.

Sales revenues from other external activities (including Estate Agent, Service, project management, business services etc.) were NOK 68.2 million in 2011, compared with NOK 65.2 million in 2010 and NOK 28.3 million in 2009. The increase is largely due to higher external revenues for the Estate Agent operations.

11.1.2 Operating expenses Operating expenses consist largely of project expenses/building costs, cost of sold properties and administration expenses (refer to Note 4 to the consolidated financial statements for 2011 enclosed in Appendix 3 for further details). Total operating expenses (exclusive of share of income (losses) and gains (losses) on disposal from associated companies and joint ventures) amount to NOK 378.1 million in 2011, NOK 314.1 million in 2010 and NOK 304.1 million in 2009. The level of expenses will fluctuate depending on the number of projects in production. The organisation has during 2009 through 2011 been enhanced to manage the increased level of activity. This is in turn reflected through an increase in the cost level.

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The share of profit and gains on disposal from associated companies and joint ventures was NOK 75.4 million, compared with a loss of NOK 44.3 million in 2010 and NOK 13.8 million in 2009.

11.1.3 Operating profit (loss) Operating profit for 2011 was NOK 7.1 million compared to NOK 20.7 million in 2010 and NOK 36.2 million in 2009. The operating results for all three years are influenced by the fact that a limited number of real estate development projects were realised/delivered, and that the organisation at the same time was being developed for future growth.

11.1.4 Net financial expenses Net financial expenses in 2011 amounted to NOK 36.1 million compared to NOK 23.3 million in 2010 and NOK 13.1 million in 2009. Refer to note 9 to the consolidated financial statements for 2011 enclosed in Appendix 3 for further details.

11.1.5 Profit (loss) before/after income taxes The Group had a loss before tax of NOK 29.0 million in 2011, a loss of NOK 2.5 million in 2010, and a profit of NOK 23.0 million in 2009.

There has been no income tax payable during the period 2009 through 2011, as the Group has not been in a taxable position, mainly as a result of large losses carried forward. The income tax expense deviates from 28 % of the profit (loss) before tax for a number of reasons, including that the share of income from associated companies and joint ventures which are not limited partnerships is recognised on an after tax basis and therefore does not impact the Group’s income tax expense.

11.1.6 Cash flow Net cash flow from operating activities was NOK – 354.9 million in 2011 compared to NOK 28.6 million in 2010 and NOK 69.0 million in 2009. Changes in net operating cash flows are mainly driven by increased construction activity, partly offset by delivered real estate projects and other revenues.

Net cash flow from investing activities was NOK 32.8 million (2010: NOK -21.9 million and 2009: NOK 13.8 million). Cash in businesses acquired in 2011 was NOK 281.3 million partly offset by payments for acquisitions of businesses and loans given.

Net cash flow from financing activities was NOK 703.7 million (2010: NOK 2.5 million and 2009: NOK -86.4 million). Cash inflows in 2011 are driven by new debts from increased construction activity and new debts from refinancing used to pay down the amounts due to Selvaag Gruppen AS cash pool.

Cash and cash equivalents increased by NOK 381.7 million to NOK 395.2 million (2010: NOK 13.5 million and 2009: NOK 4.3 million).

11.1.7 Net liabilities In 2011 the Group entered into external financing arrangements (as further described in Section 12.5.1) and had, as at the end of the financial year 2011, interest-bearing liabilities of NOK 3,565.9 million. The Group’s operations have historically largely been financed through the cash pool arrangements of Selvaag Gruppen AS and the amounts related to this for 2010 and 2009 were NOK 614 million and NOK 689 million, respectively. Through the reorganisation and re-financing in 2011, the cash pool arrangement with Selvaag Gruppen was terminated and the Group entered into external financing arrangements. Please refer to chapter 12 for further details. Investments in projects through associated companies and joint ventures are financed through independent external loans in each company.

Total liabilities at the end of each of the financial years 2011, 2010 and 2009 were NOK 4,114.1 million, NOK 760.1 million and NOK 1,083.9 million, respectively.

11.1.8 Total equity Equity as at the end of 2011 was NOK 1,310.7 million, representing an equity ratio of 24.2 %. The share capital, share premium reserve and other paid-in capital totalled NOK 1,798.1 million. Liabilities of NOK 100 million were converted to equity in 2011.

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For 2011, 2010 and 2009, total equity and the equity ratio were NOK 1,310.7 million (24.2 %), NOK 322.0 million (29.6 %) and NOK 225.3 million (17.2 %), respectively. Selvaag Gruppen AS has made a conscious effort to strengthen the Group’s equity through capital increases via group contributions and other transactions in 2009 and 2010, in order to prepare the Company for growth.

11.2 COMPARISON FOR THE THREE MONTH PERIODS ENDED 31 MARCH 2012 AND 31 MARCH 2011 11.2.1 Revenues In the first three months of 2012, the Group’s total revenues were NOK 192.0 million, compared to NOK 41.2 million for the same period in 2011. NOK 143.5 million of the revenues in 2012 are related to deliveries of 74 apartments, of which 63 apartments from wholly-owned projects. In the same period in 2011, the Group delivered no apartments from wholly-owned projects. The first three months of 2012 also include revenues of NOK 22.3 million from sale of a land plot to Lørenskog Kommune. Other revenues are related to activities outside of the core operations, mainly estate agent services and leasing. NOK 19.0 million of the total revenues in the first three months of 2011 are related to external deliveries of modules. There were no deliveries of modules in the first three months of 2012.

11.2.2 Operating expenses Total operating expenses in the first three months of 2012 were NOK 175.6 million, compared to NOK 47.0 million for the same period in 2011.

In the first three months of 2012, project expenses were NOK 136.0 million, an increase from NOK 20.4 million for the same period in 2011. The expenses are mainly related to buildings expenses for delivered apartments, in addition to project expenses from other projects that do not qualify for capitalisation as inventory property. The increase in project expenses must be viewed in connection with no deliveries of apartments in wholly-owned projects in the first three months of 2011.

Salaries and personnel expenses amount to NOK 15.4 million in the first three months of 2012, compared to NOK 15.5 million for the same period in 2011. In addition, salaries and personnel expenses of NOK 4.1 million have been capitalised as part of properties under development, and will be expensed as part of project expenses upon delivery.

Other operating expenses increased to NOK 26.5 million in the first three months of 2012, up from NOK 11.8 million for the same period in 2011. The increase follows Selvaag Bolig’s continuing profiling of the Group as Norway’s largest residential real estate developer in line with the commencement of sales on several projects. The Group has also further strengthened the organisation and prepared for initial public offering. This is a higher level of expenses than the Group will have under normal operations.

The line item ”Share of income (losses) and gains (losses) on disposal from associated companies and joint ventures” of NOK 7.4 million in the first three months of 2012 (losses of NOK 0.2 million in 2011) is mainly related to contributions from the partly-owned projects Kjørbo Vest and Stord Industribygg.

11.2.3 Operating profit (loss) The Group’s operating profit for the first three months of 2012 was NOK 16.4 million, compared to a loss of NOK 5.8 million for the same period in 2011.

Net financial expenses were NOK 16.5 millon in the first three months of 2012, compared to NOK 0.6 million for the same period in 2011.

The income tax (expense) income for the first three months in 2012 was a net income of NOK 6.1 million, compared to a net income of NOK 2.2 million for the same period in 2011.

The Group’s profit for the first three months of 2012 was NOK 5.9 million, compared to a loss of NOK 4.2 million for the same period in 2011.

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11.2.4 Cash flow Net cash flow from operating activities was NOK -324.8 million in the first three months of 2012, compared to NOK -10.9 million for the same period in 2011. Profit (loss) before income taxes in the first three months of 2012 was NOK -0.2 million, which is an improvement of NOK 6.2 million compared to the same period in 2011 (NOK -6.4 million in 2011). The change in net cash flow is mainly a consequence of changes in working capital due to a significant increase in building activity and trade receivables from delivered apartments. This resulted in a reduction in operating cash flow of NOK 322.3 million.

Net cash flow from investing activities was NOK -5.9 million for the first three months of 2012, compared to NOK -43.2 million for the same period in 2011.

Net cash flow from financing activities was NOK 247.4 million in the first three months of 2012, which corresponds to net proceeds from borrowings.

Cash and cash equivalents were reduced with NOK 83.4 million in the first three months of 2012, to NOK 311.8 million (NOK 21.4 million as at 31 March 2011).

11.2.5 Net liabilities At the end of the first three months of 2012, the Group held NOK 2,495.4 million in non-current interest-bearing liabilities (nil in 2011) and NOK 1,317.9 million in current interest-bearing liabilities (NOK 689.9 million in 2011). The increase in interest-bearing liabilities compared to the same period in 2011 is due to the merger with Hansa Property and the acquisition of SPE KS in the third quarter of 2011 and the acquisition of Selvaag Bolig Rogaland AS (formerly Bo En AS) in the fourth quarter of 2011 together with increased construction activity.

The Company holds an unsecured loan facility of NOK 500 million in the parent company. The loan is defined as an “equity bridge” with a plan to pay the loan fully or partly in connection with an initial public offering of Selvaag Bolig ASA. In addition, the Group has established a new land loan of NOK 550 million allocated between 8 different land plots. The loan will be converted into construction loans in line with the development of the different projects.

The Group holds a bank overdraft facility of NOK 150 million of which the whole limit was drawn as at 31 March 2012. The Group also holds a bank overdraft facility of NOK 150 million to finance the commencement of new projects. As at 31 March 2012, no funds were drawn on this facility.

The interest-bearing liabilities are mainly divided into three categories, liabilities in Selvaag Bolig ASA, land loans and construction loans. As at 31 March 2012, liabilities in Selvaag Bolig ASA amounted to NOK 810 million, land loans amounted to NOK 1,653 million and construction loans amounted to NOK 1,350 million. Interest expenses on land loans are capitalized as part of the land plot from the day the project has been regulated. As at 31 March 2012, interest expenses related to loans of NOK 1,107 million were capitalized while interests expenses related to loans of NOK 546 million were expensed in profit (loss).

11.2.6 Total equity Equity as 31 March 2012 was NOK 1,316.5 million (NOK 317.8 million as at 31 March 2011), representing an equity ratio of 22.9 % (27.2 % in 2011).

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11.3 SELECTED FINANCIAL INFORMATION FOR HANSA PROPERTY GROUP AS, SELVAAG PLUSS EIENDOM KS AND SELVAAG BOLIG ROGALAND AS (FORMERLY BO EN AS) 11.3.1 Hansa Property Group AS

Year ended

IFRS IFRS NOK '000 31 December 2011 31 December 2010 (audited) 31 December 2009 (audited)

Total revenues N/A 53,547 517,166 Operating profit (loss) N/A (112,993) (82,547) Profit (loss) for the period N/A (96,739) (96,601) Total assets N/A 1,838,708 2,049,308 Total equity N/A 720,929 810,430

Due to the merger between Hansa Property and the Company that was completed on 24 August 2011, no consolidated or parent company financial statements have been prepared for 2011 for Hansa Property. Consolidated financial information for the Hansa Property for 2009 and 2010 are presented in the table above.

11.3.2 Selvaag Pluss Eiendom KS

Year ended NGAAP NGAAP NGAAP 31 December 2011 (audited) 31 December 2010 (audited) 31 December 2009 (audited) NOK '000 Parent Company Consolidated Consolidated

Total revenues - 2,983 50,766 Operating profit (loss) (6,165) (38,095) (1,804) Profit (loss) for the period 17,170 (34,446) 6,382 Total assets 409,792 669,652 460,198 Total equity 408,960 201,694 213,776

Selvaag Bolig Group holds a 100% ownership in SPE KS due to the share issue implemented on 24 August 2011. No separate consolidated financial statements have been prepared for SPE KS for 2011, and the figures for 2011 in the table above only include the parent company SPE KS. Consolidated financial information for the SPE KS Group for 2009 and 2010 are presented in the table above.

11.3.3 Selvaag Bolig Rogaland AS (formerly Bo En AS)

Year ended

NGAAP NGAAP NGAAP NOK '000 31 December 2011 (audited) 31 December 2010 (audited) 31 December 2009 (audited)

Total revenues 8,716 5,109 3,178 Operating profit (loss) (237) 65 (2,700) Profit (loss) for the period 1,809 1,434 (1,012) Total assets 200,409 190,192 189,208 Total equity 178,978 177,169 175,735

No consolidated financial statements have been prepared for Selvaag Bolig Rogaland AS for the years 2009, 2010 and 2011, so only the financial information for the parent company Selvaag Bolig Rogaland AS is presented in the table above.

Jaasund AS, a subsidiary of Selvaag Bolig Rogaland AS, recognised revenues of NOK 100 million from sale of a land plot in 2011, which is not included in the table above. These revenues are included in the pro forma consolidated figures for Historical Selvaag Bolig Rogaland AS in the table in section 9.5.

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12. CAPITAL RESOURCES AND INDEBTEDNESS

12.1 CASH FLOW The Group’s main sources of cash flow are cash flow from operations and borrowings. The table below is derived from the historical information as presented in Section 10.3 ”Consolidated historical financial information” above.

Three months ended Year ended IFRS IFRS IFRS IFRS IFRS 31 March 2012 31 March 2011 31 December 31 December 31 December NOK '000 (unaudited) (unaudited) 2011 (audited) 2010 (audited) 2009 (audited)

All comments below regarding historical cash flows are derived from the historical information as presented in Section 10 “Operating and financial information” above. Refer to Section 11.1.6 and 11.2.4 for additional comments concerning historical cash flows and Section 12.3 for comments concerning any restrictions on transfer of funds.

Historically, the Group was part of the Selvaag Gruppen AS’s cash pool arrangement and thus benefited from the overdraft facilities available to Selvaag Gruppen AS. As of 25 August 2011, the Company established a financing arrangement with external parties and is no longer part of the Selvaag Gruppen AS cash pool. The Company has a working capital facility of NOK 150 million of which NOK 80.9 million was drawn as of 31 December 2011. There have been no changes to the facility between the end of the financial year 2011 and the date of this prospectus. Certain wholly owned subsidiaries that are also limited companies are included in a cash pool arrangement, which entails that funds from the working capital facility will also be available to these group companies. The Company also has a facility of NOK 150 million in order to finance new project. This facility was not used as of 31 December 2011. There have been no changes to the facility between the end of the financial year 2011 and the date of this prospectus. The Group had cash and cash equivalents of NOK 395.2 million as of 31 December 2011, and NOK 311.8 million as of 31 March 2012.

Cash flows in the Company typically arise as follows: All projects are developed in SPVs (special purpose vehicles). The purchase of a plot of land will typically be financed partly with equity and partly with borrowings and all costs incurred until construction commences are carried by the developer. When a purchase contract is entered into, the customer will typically pay 10% of the purchase price in advance. These funds are restricted until a building loan has been raised. When the building loan has been received, the advances from customers are used to partly repay the building loan; hence, the money is not available to Selvaag Bolig. If a project reaches pre-sales of 60 %, the land loan is converted to a building loan which will finance all costs incurred in the construction period. The cash flow available to Selvaag Bolig will therefore primarily arise from completed projects. In conclusion, on delivery, the company will recoup the equity raised and a margin per project. Additionally, the company charges a management fee to all project companies. There is also some rental income related to properties that is intended to be developed into residential dwellings at a later point in time. Costs incurred by Selvaag Bolig are generally related to salary and wage costs, other operating costs, land loan costs and costs related to the equity bridge financing.

The funding of the Company is described in detail in Sections 12.4 “Capitalization and indebtedness” and 12.5 “Borrowings” below.

For further information regarding the Company’s capital expenditures, see Section 12.6 “Investments” below.

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12.2 WORKING CAPITAL STATEMENT In the opinion of the Company, the Company and the Group has sufficient funds for its present requirements for at least the 12 months’ period following the date of this Prospectus.

12.2.1 Key ratios The table below sets forth some consolidated key ratios for the Group, as of end of the financial years 2009, 2010 and 2011, as well as the interim period ending 31 March 2012, with comparable figures for the same period 2011.

31 March 2012 31 March 2011 31 December 2011 31 December 2010 31 December 2009

Working capital ratio1 279% 65% 295% 68% 61% Debt to equity ratio2 290% 217% 272% 195% 323% Solidity3 23% 27% 24% 30% 17%

1) Current assets/current liabilities 2) Total interest bearing debt/total equity 3) Equity/total assets

12.3 FUNDING STRUCTURE AND RESTRICTIONS ON THE USE OF CAPITAL As of 31 December 2011, the Group was funded by NOK 1,310.7 million in equity and had NOK 2,376.3 million in non-current interest-bearing debt and NOK 1,189.6 million in current interest-bearing debt. Interest- bearing debt consists mainly of bank loans, which are detailed in Note 16 to the Consolidated Financial Statements for 2011 and further described in Section 12.5 below. The Group had, as of the same date, NOK 548.2 million in non-interest-bearing liabilities (NOK 134.7 million non-current and NOK 413.5 million current). In addition, the Group held NOK 395.2 million in cash.

As of 31 March 2012, the Group was funded by NOK 1,316.5 million in equity and had NOK 2,495.4 million in non-current interest-bearing debt and NOK 1,317.9 million in current interest-bearing debt. The Group had, as of the same date, NOK 614.8 million in non-interest-bearing liabilities (NOK 129.9 million non-current and NOK 484.9 million current). In addition, the Group held NOK 311.8 million in cash.

Non-interest-bearing liabilities are made up as follows:

Non-interest bearing liabilities (NOK’000) 31 March 2012 31 December 2011

Pension obligations 372 327 Deferred tax liabilities 7,819 13,934 Provisions 92,112 92,112 Other non-current non-interest bearing liabilities 29,565 28,304 Total non-current non-interest bearing liabilities 129,868 134,677

Trade payables 129,962 148,682 Other current non-interest bearing liabilities 354,982 264,792 Total current non-interest bearing liabilities 484,944 413,474

Total non-interest bearing debt 614,812 548,151

The adequacy of available funds will depend on many factors, including the further growth of the business, capital expenditures, market development, competition and potential acquisitions. Accordingly, the Company may require additional funds and seek to raise such funds through issuing new equity and/or debt.

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In general, there are no restrictions preventing the Company from transferring funds from the Company’s subsidiaries, except for those financial covenants as set out in the Company’s loan agreements (see Section 12.5 “Borrowings” below) and except for operational limitations that follow from e.g. legal company incorporation structure (e.g. six months creditor notice in limited partnerships (KS)) and asset management deposit accounts (e.g. deposits related to loan agreements for certain projects that are released when land loans are converted into building loans and the required pre-sales have been reached). However, it is customary that the relevant company must obtain consent from its lender to be able to make dividend payments to its parent company as long at the relevant construction loan is not repaid. Each project is separately financed. When the apartments are delivered, the construction loan will be repaid. Subsequently, the rest of the cash in the Group may be paid out to the parent company (Selvaag Bolig ASA) as dividend and repayment of invested capital.

The Group has term loans and construction loans that include covenants which restrict the use of capital. These loans and the covenants are further described in Section 12.5 “Borrowings” below.

The Company believes that funds from operations and funds available under its loan facilities will be sufficient to support the Company’s growth strategy and investment commitments.

12.4 CAPITALIZATION AND INDEBTEDNESS The Company’s consolidated equity as of 31 December 2011 was NOK 1,310.7 million, representing an equity ratio of approximately 24%. The same equity has per 31 March 2012 increased to NOK 1,316.5 million, representing an equity ratio of approximately 23%.

The table below sets forth the Company’s consolidated cash and cash equivalents and capitalization and indebtedness as of 31 March 2012 and 31 December 2011, respectively. This table should be read together with the consolidated financial statements and the related notes hereto, as well as the information in Section 10 “Operating and financial information” above. There has been no material change in the below information since 31 March 2012 and up to the date of the Prospectus.

Capitalization as at NOK '000 31 March 2012 31 December 2011 Guaranteed - - Secured3) 639,253 517,940 Unguaranteed/unsecured 1,163,582 1,085,162 Total current debt A 1,802,835 1,603,102

Guaranteed -- Secured3) 2,287,748 2,224,942 Unguaranteed/unsecured 337,513 286,035 Total non-current debt B 2,625,261 2,510,977

Indebtedness as at NOK '000 31 March 2012 31 December 2011

Cash at bank and in hand 311,836 395,207 Cash equivalents - - Trading securities - - Liquidity D 311,836 395,207

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Current Financial Receivables E 225,936 119,527

Current bank debt 484,000 483,667 Current portion of non-current debt 833,891 705,961 Other current financial debt1) 484,944 413,474 Current financial debt I 1,802,835 1,603,102

Net current financial indebtedness (I-E-D) J 1,265,063 1,088,368

Non-current bank loans 2,495,393 2,376,300 Other non-current debt2) 122,049 120,743 Deferred tax 7,819 13,934 Non-current financial indebtedness N 2,625,261 2,434,667

Net financial indebtedness (J+N) O 3,890,324 3,599,345

1) Includes trade payables and other current non-interest bearing liabilities 2) Includes provisions, pension obligations and other non-current non-interest bearing liabilities 3) Land held by companies in the Selvaag Bolig ASA group has been pledged as security for the secured interest- bearing liabilities.

12.5 BORROWINGS 12.5.1 Overview of debt financing of the Selvaag Bolig Group The Group has the following loan agreements as of the date of this Prospectus:

Loan agreements Lending Bank Interest Amount Margin Final Maturity 3.50%. NOK 250 million at When the the Offering, amendment NOK 50 million agreement 31.12.2013, described NOK 50 million Equity bridge term below is 31.12.2014 and loan #1 (Selvaag effective NOK 150 million Bolig ASA ) DNB Bank ASA NIBOR NOK 500,000,000 4.00% 31.12.2015 NOK 25 million 30.06.2012, NOK 25 million 30.12.2012, NOK 50 million 30.06.2013, NOK 50 million 30.09.2013, NOK 50 million 2.25% to be 31.12.2013, negotiated NOK 50 million every year. 31.12.2014, When the NOK 50 million Long term loan MNOK 500 31.12.2015 and (Land loan, Selvaag is repaid NOK 250 million Bolig ASA) DNB Bank ASA NIBOR NOK 550,000,000 1.75% 28.08.2016 Revolving credit facility (Working 2.50%, to be capital facility, negotiated Selvaag Bolig ASA) DNB Bank ASA NIBOR NOK 150,000,000 every year 25 August 2014 Working capital 2.00%, to be facility (Selvaag negotiated Bolig ASA) DNB Bank ASA NIBOR NOK 150,000,000 every year 1 July 2014 Construction loan DNB Bank ASA NIBOR NOK 15,000,000 0.95% 31 December 2013

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(HPRO Holding Øst AS) Construction loan/ Land loan (Selvaag Handelsbanken and Bolig Øst AS) DNB Bank ASA NIBOR NOK 504,500,000 1.70% 31 December 2013 Construction loan Sparebank 1 3 Month (Lervig Brygge AS) SR-Bank NIBOR NOK 92,000,000 1.95% 1 June 2012 Construction loan Sparebank 1 3 Month (Lervig Brygge AS) SR-Bank NIBOR NOK 195,300,000 1.95% 31 December 2012 Construction loan/ Land loan (Lervig Sparebank 1 3 Month Brygge AS) SR-Bank NIBOR NOK 64,700,000 1.95% 31 December 2015 Land loan (Skårer Storebrand Bank Bolig AS) ASA NIBOR NOK 131,500,000 2.25% 19 November 2015 Land loan (Skårer Storebrand Bank Bolig AS) ASA NIBOR NOK 68,500,000 2.25% 19 December 2015 Construction loan (Stord Industribygg Sparebank 1 3 Month AS) SR-Bank NIBOR NOK 40,000,000 1.75% 5 May 2021 Land loan (Jaasund Sparebank 1 3 Month AS) SR Bank NIBOR NOK 85,000,000 1.70% 31 December 2018 Construction loan Sparebank 1 3 Month (Jaasund AS) SR Bank NIBOR NOK 34,000,000 1.95% 1 May 2013 Land loan (Aase Sparebank 1 3 Month Gaard AS) SR-Bank NIBOR NOK 43,700,000 1.50% 31 December 2017 Construction loan Handelsbanken and 3 Month (Løren 2B AS) DNB Bank ASA NIBOR NOK 405,000,000 2.00% 31 December 2012 Construction loan (Selvaag Bolig Mortensrudhøyden 3 Month AS) DNB Bank ASA NIBOR NOK 210,000,000 1.65% 30 June 2013 Construction loan (Selvaag Bolig DNB Bank ASA 3 Month Kornmoenga AS) and Handelsbanken NIBOR NOK 280,000,000 1.65% 30 June 2014 Construction loan (Selvaag Bolig 3 Month Løren 5 AS) DNB Bank ASA NIBOR NOK 270,000,000 1.65% 31 December 2013 Land loan (Strandkanten Pluss I KS) DNB Bank ASA NIBOR NOK 59,300,000 2.50% 31 December 2014 Land loan (Strandkanten Pluss II AS) DNB Bank ASA NIBOR NOK 36,500,000 2.00% 30 June 2013 Land loan (Nyhavn 3 Month Pluss KS) DNB Bank ASA NIBOR NOK 400,000,000 1.50% 30 June 2014 Land loan (Lade Allé 67/69 AS) DNB Bank ASA NIBOR NOK 73,700,000 2.00% 30 June 2013 Construction loan (Nesttun Pluss KS) DNB Bank ASA NIBOR NOK 290,000,000 1.50% 30 September 2013 Construction loan (Selvaag Utsikten 3 Month AS) DNB Bank ASA NIBOR NOK 23,000,000 1.50% 30 September 2012 Construction loan (Selvaag Bolig Bjørnåsen Syd II 3 Month AS) DNB Bank ASA NIBOR NOK 145,000,000 1.65% 30 June 2013 Bond loan (Selvaag Bolig ASA) The Bondholders NIBOR NOK 400,000,000 2.00% 31 December 2012 Loan (Selvaag Selvaag Gruppen Bolig ASA) AS - NOK 165,000,000 3.50% On demand Construction loan (Selvaag Løren 7 3 Month AS) DNB Bank ASA NIBOR NOK 178,000,000 2.00% 28 February 2014 Land loan (Selvaag Bolig Bjørnåsen Syd II AS) DNB Bank ASA NIBOR NOK 31,000,000 1.70% 31 December 2013

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Land loan (Selvaag Bolig Vestfold AS) DNB Bank ASA - NOK 92,500,000 1.25% 31 December 2013 Land loan (Jaasund Sparebank 1 3 Month AS) SR- Bank NIBOR NOK 25,000,000 1.75% 21 September 2015 Construction loan (Selvaag Bolig Glassverket AS) DNB Bank ASA - NOK 106,000,000 2.20% 30 June 2013 Construction loan (Selvaag 3 Month Bekkebakken AS) DNB Bank ASA NIBOR NOK 145,000,000 1.75% 1 July 2013 Construction loan (Selvaag Skullerud 3 Month AS) DNB Bank ASA NIBOR NOK 83,000,000 1.75% 31 July 2013 Construction loan (Selvaag Bolig Bjørnåsen Syd II 3 Month AS) DNB Bank ASA NIBOR NOK 70,000,000 2.20% 31 March 2013 Construction loan Storebrand Bank (Vestparken AS) ASA NIBOR NOK 76,000,000 1.65% 30 June 2012 Construction loan (Selvaag Bolig 3 Month Vestfold AS) DNB Bank ASA NIBOR NOK 110,000,000 2.00% 30 September 2012 Construction loan Sparebank 1 3 Month (Jaasund AS) SR-Bank NIBOR NOK 36,000,000 1.95% 1 April 2013 Construction loan (Øya Lervig Brygge Sparebank 1 3 Month AS) SR-Bank NIBOR NOK 7,000,000 1.75% 1 October 2015 Land loan (Lervig Sparebank 1 3 Month Brygge AS) SR-Bank NIBOR NOK 40,000,000 1.75% 21 September 2015 Construction loan (Selvaag Fernanda 3 Month Nissen AS) DNB Bank ASA NIBOR NOK 217,300,000 2.20% 15 February 2014 Construction loan (Selvaag Bolig 3 Month Vestfold AS) DNB Bank ASA NIBOR NOK 111,600,000 2.20% 15 February 2014 Construction loan Sparebank 1 3 Month (Lervig Brygge AS) SR-Bank NIBOR NOK 74,000,000 1.95% 31 December 2013 Construction loan Sparebank 1 3 Month (Lervig Brygge AS) SR-Bank NIBOR NOK 81,000,000 1.95% 31 December 2013 Construction loan 3 Month (Vestparken AS) DNB Bank ASA NIBOR NOK 153,600,000 2.20% 31 March 2014 Land loan (SPE KS 3 Month Property SL) Bancaja EURIBOR EUR 4,687,000 1.00% 26 September 2022 Note: Where the column “Interest” is only marked “NIBOR” this is due to the borrower, for each interest period, having the opportunity to choose which NIBOR period, i.e. 3, 6 or 9 Month NIBOR, to adhere to for the following interest period.

Total loan facilities amount to NOK 5997.0 million, of which NOK 3,813.3 million was drawn per 31 March 2012. Refer to note 16 of the financial statements for 2011 (Appendix 3) for further information regarding borrowings.

During the summer of 2011, the Company refinanced most of its debt with a financing arrangement amounting to NOK 1,350 million. The financing arrangement consisted of (i) a NOK 500 million facility agreement (equity bridge term loan) dated 23 August 2011 (as later amended as described below), (ii) a NOK 700 million facilities agreement dated 23 August 2011 (consisting of a NOK 550 million real estate loan and a NOK 150 million working capital facility) and (iii) a NOK 150 million revolving credit facility dated 8 August 2011, each as described above. Each of the agreements was entered into between the Company as borrower and DNB Bank ASA as lender.

The Company has on 23 April 2012 signed an amendment agreement with DNB Bank ASA regarding the equity bridge term loan. Following the amended terms, the equity bridge term loan is set to be repaid with minimum NOK 250 million in connection with the Offering, the Company’s option for extension of the maturity date with the related conversion option for the lender to convert any amount of the outstanding loan into shares in the Company is deleted, and the loan shall further be repaid with (i) NOK 50 million no later than 31 December 2013 and (ii) NOK 50 million no later than 31 December 2014. The final maturity date of the equity bridge term

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loan is 31 December 2015. In addition to customary closing conditions, it is a condition for the amended terms that NOK 250 million is received by the Company through a share capital increase and paid to the lender before 30 September 2012. Such condition is expected to be fulfilled through the Offering.

The Company shall make necessary repayments of the NOK 550 million real estate loan in order to ensure that the loan does not exceed NOK 525 million as of 30 June 2012, NOK 500 million as of 30 December 2012, NOK 450 million as of 30 June 2013, NOK 400 million as of 30 September 2013, NOK 350 million as of 31 December 2013, NOK 300 million as of 31 December 2014 and NOK 250 million as of 31 December 2015.

The Company also entered into a NOK 165 million loan agreement with Selvaag Gruppen AS, as lender, on 23 August 2011. The loan agreement matures on Selvaag Gruppen AS' demand. Selvaag Gruppen AS can only demand repayment (i) subject to it having made a capital injection in the Company on the condition that the consideration is applied towards repayment of the loan, (ii) as a conversion in connection with an equity issue in the Company or (iii) subject to the NOK 1,350 million financing arrangement having been repaid. This loan is set to be settled in full immediately after the closing of the Offering in accordance with the method as described in (i) above following a subscription by Selvaag Gruppen AS for a similar amount in the Offering.

Under the NOK 400 million bond loan with Norsk Tillitsmann as bond trustee, NOK 17 million (plus interest) is currently outstanding. The remaining loan amount has been purchased by the Company. The bondholders owning the NOK 17 million outstanding debt have not responded to the Company’s offer to re-purchase. The Company is therefore, pursuant to discussions with the bond trustee, planning to offer the remaining bondholders a right of pre-payment of the bonds as a price of 100% of par plus accrued interest. The offer is in process and is expected to be finalised shortly.

The loan agreements under the NOK 1,350 million financing arrangement with DNB Bank ASA are structured to allow the planned listing on Oslo Børs. There is a covenant which sets certain limitations on share transfers without the prior consent of DNB Bank ASA. Selvaag Gruppen AS and/or affiliates have to own more than 1/3 of the shares and the voting rights of the Company to avoid mandatory prepayment of the facilities. As of today, Selvaag Gruppen AS owns approximately 60.8% of Selvaag Bolig, and it is expected that Selvaag Gruppen AS will own significantly more than 1/3 of the shares of the Company following the Offering and the listing on Oslo Børs.

In the equity term bridge loan there is a covenant which restricts the Company's right to pay or declare any dividend to the Company’s shareholders as long as any amount is outstanding under the equity bridge term loan. There is also a covenant which states that the net proceeds from any equity issue made by the Borrower shall be applied in prepayment of the equity bridge term loan until the equity bridge term loan is repaid in full. Furthermore there is a covenant in the equity bridge term loan which states that the loan shall be repaid if, after the initial listing, the shares in the Company cease to be listed on Oslo Børs.

Due to the Group's operations as property developer, a large extent of the Group’s real estate projects are project financed in the project companies, as shown in the table above.

In the NOK 504.5 million facilities agreement entered into between project companies owned by Hansa Selvaag Holding AS (renamed to Selvaag Bolig Øst AS) and DNB Bank ASA and Handelsbanken, there is a covenant which states that the outstanding amount under a facility shall in no event exceed 67% of the value of the mortgage securing the relevant facility. An overview of the six project companies owned by Selvaag Bolig Øst AS is provided in section 6.2 “Legal structure of the Selvaag Bolig Group” above.

In the NOK 36 million, NOK 34 million and NOK 25 million loan agreements entered into between Jaasund AS and Sparebank 1 SR-Bank, there is a covenant which states that the equity of Selvaag Bolig Rogaland AS with its subsidiaries shall be no less than 20% of its outstanding loan at the earliest of (i) the time of completion of the relevant projects and (ii) 31 December 2012.

In the NOK 74 million, NOK 81 million, NOK 92 million, NOK 195.3 million and NOK 64.7 million loan agreements entered into between Lervig Brygge AS and Sparebank 1 SR-Bank there is a covenant which states that the equity of Selvaag Bolig Rogaland AS with its subsidiaries shall be no less than 20% of its outstanding loan at the earliest of (i) the time of completion of the relevant projects and (ii) 31 December 2012.

The Company’s NOK 1,350 million facilities agreement contains a cross-default clause that will be triggered in the event of breach of the abovementioned covenants in the existing loan agreements of the project companies.

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In several of the loan agreements entered into by the subsidiaries of the Company, there are covenants requiring minimum equity in the Company prior to drawdown on the loans. Such equity requirements have been fulfilled.

The Company is in compliance with the covenants in its loan agreements and is not aware of any circumstances indicating that the Company will not be able to remain in compliance with such covenants.

Except for the above covenants, the Group has no covenants in its loan agreements which are deemed to be material with respect to stock exchange listing.

An overview of the interest bearing debt is provided in graph 12.1. Corporate loan refers to interest bearing debt in Selvaag Bolig ASA, except for the NOK 550 million long term loan facility that is categorised as a land loan. NOK 3,789 million represents bank debt and differs from NOK 3,813 million of interest bearing debt on the balance sheet. The NOK 24 million difference is due to NOK 34 million in debt to landowners (land loan) in Stavanger and NOK -10 million in a temporary difference (corporate loan booked at amortised cost)

A maturity profile of the interest bearing debt is illustrated in graph 12.2. The loan from Selvaag Gruppen of NOK 165 million and NOK 250 million of the equity bridge term loan facility, are shown with maturity in 2012.

Figure 12.1. Interest bearing debt as at 31 March 2012

Total: NOK 3,789 million 820

1,350

1,619 Corporate loan Land loan Construction loan

Figure 12.2. Maturity profile of interest bearing debt as at 31 March 2012

Total: NOK 3,789 million 1,359 1,075

502 467 250 137

2012 2013 2014 2015 2016 2017 --> Corporate loan Land loan Construction loan

12.5.2 Treasury and financial risk The Group operates a centralised treasury function to manage the Group’s funding requirements and financial risk. The Company's funding and treasury policies and objectives are described in the financial statements for 2011 (note 18), as enclosed to this Prospectus as Appendix 3. Each project is evaluated based on its own merits and the optimal financing solutions are sought based on the facts and circumstances in each case.

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12.6 INVESTMENTS 12.6.1 Historical principal investments The Group’s principal investments are further described in Section 6.10 “The real estate development projects”. The financing of the Company’s principal investments are secured through established loans with the Company’s bank as further set out in Section 12.5.

The table below sets out the amount of the Company’s principal investments for the financial years 2009, 2010, and 2011: NOK ’000 2009 2010 2011 Løren Nortura 14,200 Nesttun Pluss1 65,000 Nyhavn Pluss 53,000 53,000 Jaasund2 9,839 17,057 17,335 Aase Gaard3 5,760 Total 24,039 70,057 141,095 Notes: 1) NOK 20 million in land costs was paid in 2007. 2) NOK 24.6 million in land costs was paid in 2006 and NOK 16 million in land costs shall be paid in 2012. 3) NOK 17.3 million in land costs was paid in 2006, NOK 5.76 million shall be paid in each of 2012 and 2013 respectively, and NOK 4 million shall be paid in 2014.

The Company has not carried out any principal investments after 31 December 2011 and up to the date of the Prospectus.

Løren Nortura is a Selvaag Start project located in Oslo. The Project will be launched in the market during the fourth quarter of 2011. When Selvaag Bolig acquired this plot, a plot loan was given by DNB Bank ASA. When the building of the project starts, Selvaag Bolig will apply to get the plot loan converted to a construction loan.

Nesttun Pluss is a Selvaag Pluss project located in Bergen. The sale of this project started in March 2010. The project has sold sufficient units to initiate building of this project, and the construction has started. DNB Bank ASA has provided a combined plot- and construction loan for this project. The Company paid the last instalment of NOK 65 million related to the plot in Nesttun Pluss in July 2011.

Nyhavn Pluss is a Selvaag Pluss project located in Bergen. The Project will be launched in the market in 2012. When Selvaag Bolig acquired this plot, DNB Bank ASA granted Nyhavn Pluss KS a combined plot- and construction loan. The first NOK 53 million was paid in 2010 while the remaining NOK 53 million for the plot was paid in 2011.

Jaasund is a Selvaag Bolig project located in Stavanger. When Selvaag Bolig acquired this plot, the land owners granted a non-interest bearing plot-loan of a total NOK 84.8 million. The first NOK 24.6 million was paid in 2006, while the remaining 16 million shall be paid in 2012.

Aase Gaard is a Selvaag Bolig project located in Stavanger. When Selvaag Bolig acquired this plot, the land owners granted a non-interest bearing plot-loan of a total NOK 38.6 million. The first NOK 17.3 million was paid in 2006, while the remaining outstanding loan from the land owners shall be paid as stipulated in the table above.

In connection with the start-up of the Company in 2008, the Group acquired ownership interests in associates and joint ventures from companies within the Selvaag Group for a consideration of NOK 669.5 million. In addition, the Group acquired the majority of the land in AS Selvaagbygg for a consideration of NOK 224.6 million. This is further described in section 6.1.2.

The acquisitions of Hansa Property, SPE KS and of the remaining part of Selvaag Bolig Rogaland AS, as described in Section 6.1.4, 6.1.5 and 6.1.6 respectively, took place in the second half of 2011, and are included in the pro forma financial information set out in section 9 of this Prospectus. Assets and liabilities assumed in connection with the business combination of SPE KS, Hansa Property and Selvaag Bolig Rogaland AS have been recognised at the estimated fair value on the date of the business combination. The measurement of identifiable assets and liabilities is based on provisional values determined by management, pending final valuations.

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Goodwill arising in the business combinations, based on these provisional values, is as follows:

NOK ’000 Goodwill Hansa Property 130,959 SPE KS 150,940 Selvaag Bolig Rogaland AS 100,278 Total 382,177

The goodwill is primarily related to anticipated synergies from on-going operations and the benefit of integrating the entire business into the group (control premium). Part of goodwill can be attributed to recognising deferred tax obligation at nominal value.

Further information on the business combinations is contained in note 6 to the Consolidated financial statements of Selvaag Bolig for 2011 (Appendix 3).

12.6.2 Future commitments Selvaag Bolig, through its subsidiary SPE KS, has entered into an agreement with Veidekke Bostad AB to jointly develop two projects in Stockholm, Sädersärlan and Lövholmen. Sädersärlan is expected to be zoned in 2012, and the price for the plot (land only) is approximately SEK 203.4 million on a 100% basis. The project at Lövholmen is expected to be zoned in 2015, and the price for the plot (land only) is approximately SEK 96 million on a 100% basis.

Selvaag Bolig, through its subsidiary Selvaag Pluss AS, has entered into an agreement to purchase a plot with a development potential of approximately 18.800 sqm (“Area A”) at Landås in Asker when the plot is zoned. It is expected that the plot will be zoned in the end of 2013. The cost of the plot (land only) was NOK 6,100 per sqm per 1 January 2007 and the final price to be paid will be adjusted according to the development in Statistics Norway’s consumer price index. The price per sqm to be paid when the land is zoned is estimated to NOK 7,046, translating into a total price for the land plot of NOK 132.5 million. The Company has also agreed to acquire an adjacent plot (“Area B”) of approx. 5,600 sqm. The price of Area B is also NOK 6,100 sqm (per January 2007) and the payment, being also subject to consumer price index adjustment, will fall due when the land is zoned. Area B is expected to be zoned in the end of 2015. The price per sqm to be paid when the land is zoned is estimated to NOK 7,380, translating into a total price for Area B of NOK 41.3 million. In April 2012, Selvaag Bolig entered into an agreement to buy two additional land plots (“Area C” and “Area D”) adjacent to Area A and Area B. The development potential of Area C and Area D is estimated to 6,856 sqm and 4,160 sqm, respectively, and the settlement method for the two land plots is the same as for Area A and Area B. Area C and D was added to Selvaag Bolig’s land portfolio after 31 March 2012, and thus only Area A and Area B (26,400 sqm in total) is included in table 6.10.1.

In due time before the settlement of these plots, Selvaag Bolig will apply for plot loans for these plots. In most cases, a combined plot- and construction loan will be granted by a bank. Given a certain pre-sale, e.g. 60%, the plot loan is converted to a construction loan.

Please also see Section 12.6.1 regarding future commitments regarding Jaasund and Aase Gaard. In addition, Selvaag Bolig Rogaland AS owns 50% of the project Bo Emmaus. Following this acquisition, Selvaag Bolig Rogaland AS shall pay the remaining outstanding amount of NOK 8.55 million to the seller in 2012.

Except as described in Sections 12.6.1 and 12.6.2, the Company has not made any firm commitments with respect to future principal investments. However, the Company contemplates developing certain of its plots, which must be expected to imply investment commitments to be made.

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13. SHARES AND SHARE CAPITAL

13.1 GENERAL The issued share capital of the Company is NOK 136,373,592 comprising of 68,186,796 Shares fully paid with a par value of NOK 2.00 and issued in accordance with the Norwegian Public Limited Companies Act. The Shares are registered in the VPS register with ISIN NO 0010612450.

The Registrar for the Shares is DNB Bank ASA, Registrars Department, Stranden 21, Aker Brygge, 0021 Oslo, Norway.

The Company has one class of shares which carry equal rights in all respects, including the right to dividend. Each Share carries one vote at the Company’s general meeting.

13.2 THE OFFER SHARES The Offer Shares are expected to be issued on or about 13 June 2012 and will be issued in accordance with the Norwegian Public Limited Companies Act and have the same rights as the Shares from the time of the registration of the share capital increase resulting from the issuance of the Offer Shares in the Norwegian Register of Business Enterprises, as further set out in this Prospectus.

13.3 SHARE CAPITAL DEVELOPMENT Historical development in share capital and number of Shares:

Month/year Type of Change in Change Subscription Par value Total issued Total number change in issued in price per per Share share capital of issued share capital share number Share (NOK) (NOK) Shares capital of shares (NOK) following (NOK) change April 2008 Incorporation 100,000 100 10,000 1,000 100,000 100 December 2009 Merger 58,792 0 0 1,587.92 158,792 100 May 2011 Capital increase 82,413,048 0 1,000,000 825,718.40 82,571,840 100 May 2011 Share split 0 41,285,820 0 2.00 82,571,840 41,285,920 August 2011 Merger 27 289 104 13,644,552 36.86 2.00 109,860,944 54,930,472 August 2011 Capital increase 21,629,136 10,814,568 36.86 2.00 131,490,080 65,745,040 November 2011 Capital increase 4,883,512 2,441,756 36.86 2.00 136,373,592 68,186,796

Approximately 95.8% of the capital has been paid for with assets other than cash within the period from incorporation of the Company until the date of this Prospectus.

13.4 BOARD AUTHORISATIONS On 19 April 2012, the annual general meeting of the Company granted the Board an authorisation to increase the share capital by up to NOK 63,208,552 (the general meeting’s resolution is quoted in Section 5.2.2), to be used for issuing shares in connection with the Offering, hereunder shares to the Company’s employees. In addition, at the extraordinary general meeting held 21 November 2011 the Board was granted an authorisation to increase the share capital by up to NOK 9,861,756 to be used for issuing consideration shares in connection with acquisitions by the Company. The latter authorisation was used in connection with the acquisition of the remaining part of Selvaag Bolig Rogaland AS, and the remaining part of the authorisation not used is NOK 4,978,244. The remaining part of this authorisation is available for use in the final settlement of the Selvaag Bolig Rogaland AS acquisition, as further described in Section 6.1.6.

The authorisations are valid until the earliest of the Company’s ordinary general meeting in 2013, and 30 June 2013. The pre-emption rights of existing shareholders may be set aside under the authorisations. The authorisations include share capital increases against contribution in kind and the right for the Company to incur special obligations in accordance with the Norwegian Private Limited Companies Act Section 10-2, but not a decision to merge the Company in accordance with the Norwegian Private Limited Companies Act Section 13- 5. The authorisations may not be used if the Company has been notified that a public offer for the Company’s Shares shall be made.

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On 19 April 2012, the general meeting of the Company granted the Board an authorisation to repurchase Shares. The Board is authorised to repurchase Shares with an aggregate nominal value of NOK 13,637,358. The authorisation is valid until the earliest of the Company’s ordinary general meeting in 2013, and 30 June 2013. The purchase price for each acquired Share shall be minimum NOK 1 and maximum NOK 100.

13.5 OPTIONS AND WARRANTS In the NOK 165 million loan agreement with Selvaag Gruppen AS as lender, Selvaag Gruppen AS may demand repayment by way of a conversion of the loan to equity in the Company in connection with an equity issue in the Company. As described in Section 5.1 above, the loan is set to be repaid by proceeds from Selvaag Gruppen AS’ subscription of Offer Shares for NOK 165 million, and upon such repayment the conversion right will hence not be applicable. Except for the above and the Greenshoe Option described in Section 5.10 “Over-Allotment option, stabilisation and Greenshoe option”, there are no outstanding convertible securities, options, warrants, acquisition rights or other securities giving anyone the right to acquire Shares through utilisation of such rights.

13.6 OWN SHARES As of the date of this Prospectus, the Company owns 10,531 Shares (treasury shares).

13.7 SHAREHOLDER STRUCTURE As of date of this Prospectus, the Company had in total 95 shareholders. The 20 largest shareholders are shown in the table below: Name of shareholder Number of shares Ownership (%) Selvaag Gruppen AS 41,430,087 60.8% Ferd Eiendomsinvest AS 3,604,856 5.3% Havfonn AS 3,604,856 5.3% Skips AS Tudor 3,235,517 4.7% IKM Eiendom AS 3,075,624 4.5% Storebrand Livsforsikring 2,741,388 4.0% Svithun Finans AS 1,181,968 1.7% T S Eiendom AS 1,181,968 1.7% Toluma Invest AS 813,318 1.2% Veidekke Eiendom AS 753,238 1.1% Rotac AS 710,033 1.0% Lema AS 534,501 0.8% MP Pensjon PK 522,829 0.8% SEB Enskilda ASA 383,225 0.6% AS Wingana 353,359 0.5% Hustadlitt A/S 351,449 0.5% Megaron AS 340,924 0.5% Jasto A/S 278,089 0.4% Statoil Pensjon 261,960 0.4% Leif Hübert Eiendom AS 254,507 0.4% Sum 20 largest shareholders 65,613,696 96.2% Other shareholders 2,573,100 3.8% Total number of shares 68,186,796 100.0%

Shareholders holding more than 5% of the share capital in the Company as of the date of this Prospectus are the shareholders listed in no. 1 to and including no. 3 in the table above.

Major shareholders do not have different voting rights than the other shareholders. As of the date of this

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Prospectus, Selvaag Gruppen AS owns 60.8% of the Shares in the Company. Other than this, the Company is not aware of any other shareholders or consolidated groups of shareholders owning a number of Shares sufficient to control the Company. Except for the provisions pursuant to Norwegian law, inter alia as described in Sections 13.9.5 and 14, there are no other measures in place to ensure that any control over the Company currently held, or which may be obtained by any shareholder in the future, is not abused.

In accordance with the disclosure obligations under the Norwegian Securities Trading Act, shareholders acquiring ownership to, or control over, more than 5% of the share capital of a company listed on Oslo Børs must notify the stock exchange immediately. The table above shows the percentage held by such notifiable shareholders as of the date of this Prospectus. See also Section 14.3.4 “Disclosure Obligations” below for a detailed description of the disclosure obligations under the Norwegian Securities Trading Act.

13.8 SHAREHOLDER AGREEMENTS In June 2008 Selvaag Bolig and Hansa Property entered into shareholder agreements regarding ownership in mutually owned project companies. The agreements provided AS Selvaagbygg the right to tender for construction contracts to be entered into with the project companies. If the offer from AS Selvaagbygg was not considered to be on market terms, according to certain procedures, the project companies were free to choose another contractor for the project. The shareholder agreements no longer apply because of the merger between Selvaag Bolig and Hansa Property. However, Selvaag Bolig has accepted that AS Selvaagbygg still has the abovementioned rights in relation to the project companies. As of the date of this Prospectus, only two of the project companies remain without a contractor. In November 2011, AS Selvaagbygg was acquired by Betonmast Bygg AS. After the transaction, the Selvaag Group owns 19.5% of the shares in Betonmast Bygg AS, where AS Selvaagbygg now is a wholly-owned subsidiary.

In June 2011 Selvaag Gruppen AS and Selvaag Bolig entered into an agreement with the former owners of SPE KS. According to the agreement, the former owners of SPE KS have a right to appoint one board member on the Board of directors of Selvaag Bolig if Selvaag Bolig was not listed on Oslo Børs within 31 December 2011. The agreement will cease to apply upon the listing of the Shares on Oslo Børs.

The Company is aware that its current shareholders have further contractual arrangements related to the Shares; however, these arrangements will be automatically terminated upon the listing of the Shares on Oslo Børs.

13.9 THE ARTICLES AND CERTAIN ASPECTS OF NORWEGIAN COMPANIES LAW 13.9.1 The Articles of Association The Company's Articles of Association as of the date of this Prospectus are set out in Appendix 1, as enclosed to this Prospectus. The following is a summary of certain provisions of the Articles of Association, some of which have not been addressed in the preceding sections.

Objective of the Company Pursuant to article 3 of the Company’s Articles of Association, the Company’s object is to “acquire and develop residential housing projects for the purpose of sale, purchase and sale of property, as well as other affiliated business, hereunder commercial property. The Company may participate in other companies at home and abroad in relation to residential housing development.” (Office translation).

Registered Office The Company's registered office is in Oslo municipality.

Share capital and nominal value The Company's current share capital is NOK 136,373,592 divided into 68,186,796 Shares, each with a nominal value of NOK 2.00.

Board of Directors The Board of Directors shall consist of 3 to 9 members as designated by the general meeting.

Restriction on transfer of shares The Articles of Association do not provide for any right of first refusal for the Company’s shareholders or any other restrictions on the transfer of Shares. Share transfers are not subject to Board approval.

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Rights, preferences and restrictions attaching to shares are set out in the Norwegian Public Limited Companies Act. The Articles of Association do not set forth additional conditions with regard to changing the rights of shareholders than required by the Norwegian Public Limited Companies Act.

Nomination committee The Company shall have a nomination committee consisting of three members, who shall be shareholders or shareholder representatives.

The nomination committee shall give recommendations to the general meeting on election of, and compensation to, Board members. The recommendations shall be justified.

The general meeting elects the members of the nomination committee, including the chairman of the committee. The nomination committee shall give a recommendation on election of members to the nomination committee. The members of the nomination committee are elected for a period of two years. The general meeting determines compensation to the members of the nomination committee.

13.9.2 The general meeting of shareholders The Company’s shareholders exercise supreme authority in the Company through the general meeting. A shareholder may attend the general meeting either in person or by proxy. The Company is required to include a proxy form with notices of general meetings.

In accordance with Norwegian law, the annual general meeting of the Company’s shareholders is required to be held each year on or prior to 30 June. The following business must be dealt with and decided at the annual general meeting:

 Approval of the annual accounts and annual report, including the distribution of any dividend;  Consideration of the declaration of the Board on remuneration of the executive management; and  Any other business to be transacted at the general meeting by law or in accordance with the Company’s Articles of Association.

Norwegian law requires that written notice of general meetings are sent to all shareholders whose addresses are known at least 21 days prior to the date of the meeting, unless the Company’s Articles of Association stipulate a longer period. The Company’s Articles of Association do not include any provisions on this subject. Pursuant to article 9 of the Company’s Articles of Association, documents concerning matters to be considered at the general meeting are not required to be sent to the shareholders, provided that the documents are made available for the shareholders at the Company’s website. The same applies for documents which according to law shall be included in or attached to the notice of the general meeting. A shareholder is entitled to request that documents concerning matters to be handled at the general meeting are sent to him/her.

Any shareholder is entitled to have an issue discussed at a general meeting if such shareholder provides the Board with notice of the issue within seven days prior to the deadline for the notice to the general meeting, along with a proposal to a draft resolution or a justification for the matter having been put on the agenda.

In addition to the annual general meeting, extraordinary general meetings of shareholders may be held if deemed necessary by the Board. An extraordinary general meeting shall also be convened for the consideration of specific matters at the written request of the Company’s auditor or shareholders representing a total of at least 5% of the share capital.

13.9.3 Voting rights – Amendments to the Articles of Association The Articles of Association do not set forth additional conditions with regard to changing the rights of shareholders than required by the Norwegian Public Limited Companies Act.

Each Share carries the right to one vote at the Company’s general meetings. No voting rights can be exercised with respect to treasury Shares held by the Company.

Decisions that the general meeting is entitled to make under Norwegian law or the Company’s Articles of Association are in general made by a simple majority of the votes cast. In the case of elections, the persons who obtain the most votes cast are elected.

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Certain decisions, including but not limited to increase or reduction of the Company’s share capital, approval of merger or demerger, and amendment of the Company’s Articles of Association, require the approval of at least two-thirds of the aggregate number of votes cast at the general meeting, as well as at least two-thirds of the share capital represented at the meeting.

Decisions that (i) would reduce any shareholder’s right in respect of dividend payments or other rights to the assets of the Company or (ii) restrict the transferability of the Shares through introduction of a consent requirement, a right of first refusal upon transfers or a requirement that shareholders must have certain qualifications, require a majority vote of at least 90% of the share capital represented at the general meeting in question as well as the majority required for amendments to the Company’s Articles of Association. Certain other types of changes in the rights of shareholders require the consent of all shareholders affected thereby as well as the majority required for amendments to the Company’s Articles of Association.

There are no quorum requirements at general meetings.

In general, in order to be entitled to vote, a shareholder must be registered as the owner of Shares in the Company’s share register in the VPS or, in the case of a share transfer, report and show evidence of the shareholder’s share acquisition to the Company prior to the general meeting. Beneficial owners of Shares that are registered in the name of a nominee are generally not entitled to vote under Norwegian law, nor are any persons who are designated in the register as holding such Shares as nominees. Readers should note that there are varying opinions as to the interpretation of Norwegian law in respect of the right to vote for nominee registered Shares.

13.9.4 Additional issuances and preferential rights If the Company issues any new Shares, including bonus share issues (involving the issuance of new Shares by a transfer from the Company’s share premium reserve or distributable equity to share capital), the Company’s Articles of Association must be amended, which requires a two-thirds majority of the aggregate number of votes cast at the general meeting, as well as at least two-thirds of the share capital represented at the general meeting. In connection with an increase in the Company’s share capital by a subscription for Shares against cash contributions, Norwegian law provides the Company’s shareholders with a preferential right to subscribe for the new Shares on a pro rata basis in accordance with their then-current shareholdings in the Company. The preferential rights may be waived by the general meeting by the majority vote as required for amendments to the Company’s Articles of Association.

The general meeting may, with a majority vote as described above, authorise the Board to issue new Shares. Such authorisation may be effective for a maximum of two years, and the par value of the Shares to be issued may not exceed 50% of the share capital at the time the authorisation is registered with the Norwegian Register of Business Enterprises. The preferential right to subscribe for Shares against consideration in cash may be set aside by the Board of Directors only if the authorisation includes such possibility for the Board.

Under Norwegian law, bonus shares may be issued, subject to shareholder approval and provided that, amongst other requirements, the Company does not have an uncovered loss from a previous accounting year, by transfer from the Company’s distributable equity or from the Company’s share premium reserve. Any bonus issues may be effected either by issuing Shares or by increasing the par value of the Shares outstanding. If the increase in share capital is to take place by new Shares being issued, these new Shares must be allocated to the shareholders of the Company in proportion to their current shareholdings in the Company.

13.9.5 Minority Rights Norwegian law contains a number of protections for minority shareholders, including but not limited to those described in this and preceding paragraphs. Any shareholder may petition the courts to have a decision of the Board or general meeting of shareholders declared invalid on the grounds that it unreasonably favours certain shareholders or third parties to the detriment of other shareholders or the company itself. In certain circumstances shareholders may require the courts to dissolve the company as a result of such decisions.

13.9.6 Dividends Under Norwegian law, no interim dividends may be paid in respect of a financial period as to which audited financial statements have not been approved by the annual general meeting of shareholders. Any proposal to pay a dividend must be recommended or accepted by the Board and approved by the shareholders at a general meeting. The shareholders at the annual general meeting may vote to reduce (but not to increase) the dividends

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proposed by the Board. The Norwegian Public Limited Companies Act provides several constraints on the distribution of dividends in cash or in kind:

 Dividends are payable only out of distributable reserves. Section 8-1 of the Norwegian Public Limited Companies Act provides that distributable reserves consist of the profit for the prior fiscal year (as reflected in the consolidated income statement approved by the annual general meeting of shareholders) and the retained profit from previous years (adjusted for any reclassification of equity), less (i) uncovered losses, (ii) the book value of research and development, goodwill and net deferred tax assets (as recorded in the balance sheet, as of the most recent fiscal year end, approved by the annual general meeting of shareholders), (iii) the total nominal value of treasury Shares which the Company has acquired for ownership or as security in previous fiscal years, and credit and security which, pursuant to Sections 8-7 to 8-9 of the Norwegian Public Limited Companies Act, fall within the limits of distributable equity, and (iv) that part of the profit for the prior fiscal year which, by law or pursuant to the Company's Articles of Association, must be allocated to the un-distributable reserve or cannot be distributed as a dividend.  Dividends cannot be distributed if the Company's equity amounts to less than 10% of the total assets.  Dividends can only be distributed to the extent compatible with good and careful business practice, with due regard to any losses which the Company may have incurred since the balance sheet date (i.e. the prior fiscal year end) or which the Company may expect to incur.

Under Norwegian foreign exchange controls currently in effect, transfers of capital to and from Norway are not subject to prior government approval. However, all payments to and from Norway shall be registered with the Norwegian Currency Registry. Such registration is made by the entity performing the transaction. Further, each physical transfer of payments in currency shall be notified to the Norwegian customs. Consequently, a non- Norwegian resident may receive dividend payments without Norwegian exchange control consent if such payment is made through a licensed bank.

The Board will consider the amount of dividend (if any) to recommend for approval by the Company’s shareholders, on an annual basis, based on the annual accounts of the Company for the year just ended and the financial situation of the Company at the relevant point in time. Please see Section 13.10.2 for further information.

According to the Norwegian Public Limited Companies Act, there is no time limit after which entitlement to dividends lapses. Further, there are no dividend restrictions or specific procedures for non-Norwegian resident shareholders in the Act. For a description of withholding tax on dividends that is applicable to non-Norwegian residents see Section 15.4.1” Withholding tax on distributions” and 15.4.2 “The Company’s responsibility for the withholding of taxes”.

13.9.7 Liability of Directors Members of the Board owe a fiduciary duty to the Company and its shareholders. Such fiduciary duty requires that the Board members act in the best interests of the Company when exercising their functions and exercise a general duty of loyalty and care towards the Company. Their principal task is to safeguard the interests of the Company.

Each member of the Board may be held liable by the Company for any damage they negligently or wilfully cause the Company. Norwegian law permits the general meeting to exempt any such person from liability towards the Company, but the exemption is not binding if substantially correct and complete information was not provided at the general meeting when the decision was made. If a resolution to grant such exemption from liability or not to pursue claims against such a person has been passed by a general meeting with a majority below that required to amend the Company’s Articles of Association, shareholders representing more than 10% of the share capital or, if there are more than 100 shareholders, more than 10% of the shareholders may pursue the claim on the Company’s behalf and in its name. The cost of any such action is not the Company’s responsibility, but can be recovered from any proceeds that the Company receives as a result of the action. If the decision to grant an exemption from liability or not to pursue claims is made by a majority required to amend the Articles of Association, the minority shareholders cannot pursue the claim in the Company’s name.

13.9.8 Indemnification of Directors Neither Norwegian law nor the Articles of Association contain any provision concerning indemnification by the

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Company of the Board of Directors. The members of the Board are, as part of an insurance coverage covered against certain liabilities that they may incur in their capacity as such.

13.9.9 Distribution of Assets on Liquidation Under Norwegian law, a company may be wound-up by a resolution of the company’s shareholders in a general meeting passed by the same majority as required to amend the Articles of Association. After completion of the Offering the Offer Shares and the existing Shares rank equally in the event of a return on capital by the Company upon a winding-up or otherwise.

13.9.10 Rights of Redemption and Repurchase of Shares The share capital may be reduced by decreasing the par value of the Shares or by redemption of issued Shares. Such a decision requires the same majority as required to amend the Articles of Association. Redemption of individual Shares requires the consent of the holders of the Shares to be redeemed.

A Norwegian company may purchase its own shares if an authorisation for the board of directors of the company to this effect has been given by a general meeting with the approval of at least two-thirds of the aggregate number of votes cast and Shares represented at the meeting. The aggregate par value of treasury shares so acquired and held by the company must not exceed 10% of the company’s share capital, and treasury shares may only be acquired if the company’s distributable equity, according to the latest adopted balance sheet, exceeds the consideration to be paid for the shares. The authorisation by the general meeting cannot be given for a period exceeding 18 months.

13.10 SHAREHOLDER AND DIVIDEND POLICY 13.10.1 Shareholder policy The Company will, pursuant to its obligations under applicable legislation and rules, inform Oslo Børs, the Company’s shareholders and the market in general on an ongoing basis of the Company’s development, activities and special events, ensuring that as far as possible the pricing of the Shares reflects the underlying values and expectations on future profits. Such information will, among other things, take the form of annual reports, quarterly reports, stock exchange bulletins, press releases and investor presentations when appropriate.

13.10.2 Dividend policy The Company has not paid any dividends in the three last financial years.

The Company seeks to create value for its shareholders through a combination of increased share value in a long term perspective and distribution of dividend payments.

Selvaag Bolig's objective is to pay annual dividends in the region of 50% of after-tax profits, adjusted for non- cash generating items, in order to maximise shareholder return as well as to make the Selvaag Bolig share an attractive investment for investors. When determining dividends, the Board of Directors will take into consideration Selvaag Bolig’s expansion opportunities, liquidity and overall financial situation.

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14. SECURITIES TRADING IN NORWAY This Section 14 includes certain aspects of rules pertaining to securities trading in Norway in a Norwegian incorporated company pursuant to Norwegian legislation, but is however not a full or complete description of the matters described herein. The following summary does not purport to be a comprehensive description of all the legal considerations that may be relevant to a decision to purchase, own or dispose of Shares. Investors are advised to consult their own legal advisors concerning the overall legal consequences of their ownership of Shares.

Prior to this Offering, the Company’s Shares have not been listed or traded on any stock exchange or regulated market.

14.1 INTRODUCTION Oslo Børs was established in 1819 and is the principal market in which shares, bonds and other financial instruments are traded in Norway. Oslo Børs is operated by Oslo Børs ASA, which also operates the regulated marketplace Oslo Axess.

14.2 TRADING AND SETTLEMENT Continuous trading on Oslo Børs and Oslo Axess takes place between 09:00 CET and 17:20 CET each trading day with a subsequent closing call from 17:20 CET to 17:25 CET. Orders may be placed in the system beginning at 08:15 CET and ending at the end of post-trade at 18:15 CET.

The settlement period for trading on Oslo Børs is three days (T+3).

The ability of brokerage houses to trade for their own accounts is restricted to trading that occurs as an integral part of either investment services or general capital management. Trading by individual employees is also restricted.

Investment services may be provided only by Norwegian brokerage houses holding a license under the Norwegian Securities Trading Act, branches of brokerage houses from an EEA-state or brokerage houses from outside the EEA that have been licensed to operate in Norway. EEA-state brokerage houses may also conduct cross-border investment services in Norway.

It is possible for brokerage houses to undertake market-making activities in listed Norwegian shares if they have a license to do so under the Norwegian Securities Trading Act, or in the case of EEA-state brokerage houses, a license to carry out market-making activities in their home jurisdiction. Such market-making activities will be governed by the regulations of the Norwegian Securities Trading Act covering brokers’ trading for own account. Such market-making activity, however, does not as such require notification to the FSAN or Oslo Børs except for the general obligation of brokerage houses that are members of Oslo Børs to report all trades in stock exchange listed securities.

14.3 INFORMATION, CONTROL AND SURVEILLANCE Under Norwegian law, Oslo Børs is required to perform a number of surveillance and control functions. The Surveillance and Corporate Control unit of Oslo Børs monitors market activity on a continuous basis. Market surveillance systems are largely automated, promptly warning department personnel of abnormal market developments.

Companies listed on Oslo Børs and Oslo Axess, are subject to disclosure requirements pursuant to the Norwegian Securities Trading Act and Oslo Børs Continuing Obligations. Each listed company is inter alia required to immediately publicly disclose any precise information about the financial instruments, the company or other matters which may have a noticeable effect on the price of the financial instruments or related financial instruments, and which are not publicly available or commonly known in the market, unless there are legitimate reasons for postponement of such disclosure.

14.3.1 The VPS and Transfer of Shares The VPS is the Norwegian paperless centralised securities registry. It is a computerised bookkeeping system in which the ownership of, and all transactions relating to, listed shares of Norwegian companies must be recorded.

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The Company’s share register is operated through the VPS. All transactions relating to securities registered with the VPS are made through computerised book entries. The VPS confirms each entry by sending a transcript to the registered shareholder irrespective of any beneficial ownership. To effect such entries, the individual shareholder must establish an account with a Norwegian account agent. Norwegian banks, authorised securities brokers in Norway and Norwegian branches of credit institutions established within the EEA are allowed to act as account agents.

The entry of a transaction in the VPS is generally prima facie evidence in determining the legal rights of parties as against the issuing company or a third party claiming an interest in the given security.

A transferee or assignee of shares may not exercise the rights of a shareholder with respect to such shares unless such transferee or assignee has registered such shareholding or has reported and shown evidence of such share acquisition, and the acquisition of shares is not prevented by law, the Articles of Association or otherwise.

14.3.2 Share Register Under Norwegian law shares are registered in the name of the owner of the shares. As a general rule, there are no arrangements for nominee registration. However, shares may be registered in the VPS in the name of a depository (bank or other nominee) approved by the FSAN, as the nominee of foreign shareholders. An approved and registered nominee has a duty to provide information on demand about beneficial shareholders to the company and to the Norwegian authorities. In the case of registration by nominees, registration with the VPS must show that the registered owner is a nominee. A registered nominee has the right to receive dividends and other distributions, but cannot vote at general meetings on behalf of the beneficial owners.

14.3.3 Foreign Investment in Norwegian Shares Foreign investors may trade shares listed on Oslo Børs through any broker that is a member of Oslo Børs, whether Norwegian or foreign.

14.3.4 Disclosure Obligations A person, entity or group acting in concert that acquires Shares, options for shares or other rights to Shares resulting in its beneficial ownership, directly or indirectly, in the aggregate meeting or exceeding the respective thresholds of 5%, 10%, 15%, 20%, 25%, 1/3, 50%, 2/3 or 90% of the share capital or the voting rights in the Company has an obligation under Norwegian law to notify the Company and Oslo Børs immediately. The same applies to inter alia disposal of shares, options, other rights to shares, votes for shares or other circumstances resulting in a beneficial ownership, directly or indirectly, in the aggregate meeting or falling below said thresholds.

14.3.5 Insider Trading According to Norwegian law, subscription for, purchase of, sale of or exchange of shares which are listed or in respect of which an application for listing has been submitted, or incitement to such dispositions, must not be undertaken by anyone who has precise information about the financial instruments, the company or other matters which may have a noticeable effect on the price of the financial instruments or related financial instruments, and which are not publicly available or commonly known in the market. The same applies to entry into, purchase, sale or exchange of option or futures/forward contracts or equivalent rights connected with such shares or incitement to such disposition.

14.3.6 Mandatory Offer Requirement Pursuant to chapter 6 of the Norwegian Securities Trading Act, any person, entity or group acting in concert that acquires shares representing more than 1/3 of the voting rights of a Norwegian company listed on Oslo Børs or Oslo Axess is required to make an unconditional general offer for the purchase of the remaining shares in the company. The obligation to make a mandatory offer will be repeated at acquisition of shares representing more than 40% and 50% of the voting rights. The offer must be made within four weeks of the transaction that triggers the obligation to make the offer. The offer and the offer document are subject to approval by Oslo Børs before submission to the shareholders. The offer price per share must be at least as high as the highest price paid or agreed by the offeror in the six-month period prior to the date the relevant threshold was exceeded. However, if the market price is clearly higher than the price paid during the last six months, the offer price shall equal the market price. In the event that the offeror thereafter, but prior to the expiration of the offer period, acquires or agrees to acquire additional shares at a higher price, the offeror is obliged to restate its bid at that higher price. The offer must be in cash or contain a cash alternative at least equivalent to any other consideration offered. A

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shareholder who fails to make the required offer must within four weeks dispose of sufficient shares so that the obligation ceases to apply (i.e., to reduce the ownership to a level below the relevant threshold). Otherwise, Oslo Børs may cause the shares exceeding the relevant threshold to be sold by public auction. A shareholder who fails to make such offer cannot, as long as the mandatory bid requirement remains in force, vote for shares exceeding the relevant threshold on the company’s general meetings or exercise any rights of share ownership, except the right to receive dividends and preferential rights in the event of a share capital increase. Oslo Børs may inter alia impose a daily fine upon a shareholder who fails to make the offer within the required time frame.

14.3.7 Compulsory Acquisition Pursuant to the Norwegian Public Limited Companies Act and the Norwegian Securities Trading Act, a shareholder who, directly or through subsidiaries, acquires shares representing 90% or more of the total number of issued shares in a Norwegian public limited liability company, as well as 90% or more of the total voting rights, has a right, and each remaining minority shareholder of the company has a right to require such majority shareholder, to effect a compulsory acquisition for cash of the shares not already owned by such majority shareholder. Through such compulsory acquisition the majority shareholder becomes the owner of the remaining shares with immediate effect.

A majority shareholder who effects a compulsory acquisition is required to offer the minority shareholders a specific price per share, pursuant to the Norwegian public limited Companies Act. However, where the offeror, after making a mandatory or voluntary offer, has acquired 90% or more of the shares and voting rights, and the offeror pursuant to Section 4-25 of the Norwegian Public Limited Companies Act completes a compulsory acquisition of the remaining shares within three months after the expiry of the offer period, it follows from the Norwegian Securities Trading Act that the redemption price shall be determined on the basis of the offer price pursuant to the requirements in the Norwegian Securities Trading Act, absent specific reasons indicating another price.

Should any minority shareholder not accept the offered price, such minority shareholder may, within a specified deadline of not less than two months, request that the price be set by a Norwegian court. The cost of such court procedure will, as a general rule, be the responsibility of the majority shareholder, and the relevant court will have full discretion in determining the consideration to be paid to the minority shareholder as a result of the compulsory acquisition. Absent a request for a Norwegian court to set the price or any other objection to the price being offered, the minority shareholders would be deemed to have accepted the offered price after the expiry of the specified deadline.

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15. NORWEGIAN TAXATION

15.1 INTRODUCTION This subsection presents a brief outline of certain tax aspects under Norwegian law related to holding and disposal of shares in the Company. The presentation is based on Norwegian tax regulations in force as of the date of this Prospectus and describes the tax situation for Norwegian shareholders (shareholders resident in Norway for tax purposes) and withholding tax for non-Norwegian shareholders (shareholders not resident in Norway for tax purposes). The presentation does not concern tax issues for the Company.

The presentation does not include any information with respect to taxation in any other jurisdiction than Norway, and the presentation only focuses on the shareholder categories explicitly mentioned below. Hence, the presentation does not inter alia exhaustively cover the tax situation for non-Norwegian shareholders holding or disposing shares in the Company through a Norwegian permanent establishment. Further, special rules, which are not mentioned below, may apply to shareholders who are considered transparent entities for tax purposes and for shareholders that ceases to be resident in Norway for tax purposes (due to domestic tax law or tax treaty). Such shareholders should consult with and rely upon their own tax advisors with respect to the tax position in their country of residence and the tax consequences related to ceasing to be resident in Norway for tax purposes.

The presentation is of a general nature and is not intended to be an exhaustive analysis of all Norwegian tax aspects related to holding shares in the Company or dividends paid from the Company. Accordingly, prospective holders of shares in the Company should consult with their own tax advisors with respect to the tax consequences of a decision to acquire, own or dispose of shares under Norwegian tax regulations and tax regulations in other jurisdictions.

The presentation is subject to any amendments to tax laws and regulations that may occur after the date of this Prospectus, including any retroactive enforcement.

Please note that for the purpose of this subsection, a reference to a Norwegian or foreign shareholder refers to the tax residency and not the nationality of the shareholder.

15.2 NORWEGIAN SHAREHOLDERS 15.2.1 Taxation of dividends 15.2.1.1 Norwegian personal shareholders Dividends distributed from the Company to shareholders who are individuals resident in Norway for tax purposes (‘’Norwegian personal shareholders’’) are taxable for the shareholder as ordinary income at a current tax rate of 28%. However, this will only apply for dividends exceeding a calculated risk-free return on the investment (tax-free return), which is tax exempt.

The tax-free return is calculated annually for each share and is allocated to the owner of the share at the end of the year. The tax-free return is calculated based on the shareholder’s cost price of the share multiplied by a statutory risk-free interest rate. The risk-free interest rate is determined based on the average observed interest rate on 3-months Treasury bills, as published by the Central Bank of Norway (Norwegian: Norges Bank), adjusted downwards by 28% (i.e. after tax interest rate). The risk-free interest rate is calculated and announced by the Norwegian Tax Directorate in January in the year after the income year; i.e. the risk-free interest rate for 2012 will not be decided before January 2013. For the income year 2011, the risk-free interest rate is set to 1.5%.

If the distributed dividend for one year is less than the calculated tax-free return ( on each share), the surplus tax-free return can be carried forward and set-off against dividends or capital gains on the same share in the following years (any surplus tax-free return on one share cannot be set-off against dividends or capital gains on other shares). Furthermore, any such surplus tax-free return will be added to the basis for calculating the annual tax-free return on the share for the following years.

15.2.1.2 Norwegian corporate shareholders Dividends distributed from the Company to shareholders who are limited liability companies (and certain similar entities) resident in Norway for tax purposes (“Norwegian corporate shareholders”), are effectively taxed

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at rate of 0.84% (3% of dividend income from such shares is included in the calculation of ordinary income for Norwegian corporate shareholders and ordinary income is subject to tax at a flat rate of 28%).

15.2.2 Taxation of capital gains 15.2.2.1 Norwegian personal shareholders Sale, redemption or other disposal of shares is considered a realisation for Norwegian tax purposes.

A capital gain or loss generated by a Norwegian personal shareholder through a realisation of shares in the Company is taxable or tax deductible in Norway. Such capital gain or loss is included in or deducted from the shareholder’s ordinary income in the year of disposal. Ordinary income is taxable at a rate of 28%. Gains are taxable and losses are tax deductible irrespective of the duration of the ownership and the number of shares disposed of.

The gain or loss is calculated per share and is equal to the net consideration for the share less the cost price on the share and any surplus tax-free return on the share at the time of disposal (as a result of non-utilization of the calculated annual tax-free returns, cf. section 15.2.1.1 “Taxation of dividends – Norwegian personal shareholders”, above). However, any surplus tax-free return may only be deducted in order to reduce a capital gain, and cannot be used to produce or increase a loss, i.e. any unused allowance exceeding the capital gain upon the realisation of a share will be annulled. Further, any surplus tax-free return on one share cannot be set- off against gains on other shares. Expenses and broker’s commission at both the purchase (including the subscription for shares) and sale of shares are deductible when calculating the capital gain or loss.

A First In First Out principle applies if shares are not acquired simultaneously i.e. the shares that were acquired first will be regarded as the first to be disposed of.

15.2.2.2 Norwegian corporate shareholders Norwegian Corporate Shareholders are exempt from tax on capital gains derived from the realisation of shares qualifying for participation exemption. Losses upon the realisation and costs incurred in connection with the purchase and realisation of such shares are not deductible for tax purposes.

15.2.3 Net wealth tax Norwegian corporate shareholders are not subject to net wealth taxation.

The value of shares is included in the basis for the computation of wealth tax imposed on Norwegian personal shareholders. The marginal net wealth tax rate is currently 1.1% of the value assessed. When calculating the net wealth tax base, listed shares and other listed instruments in listed companies are valued at the quoted value as of 1st of January in the year of assessment.

15.3 EMPLOYEE OFFERING – TAXATION OF DISCOUNT Shares offered and allocated to Eligible Employees under the Employee Offering with a discount may result in a taxable benefit for these employees. The taxable benefit will be the difference between the market value of the Shares and the subscription amount payable by the Eligible Employees. However, a discount of 20% with a maximum amount of NOK 1,500 per year offered as a general scheme to all employees can be given to the employees without any taxation. Thus, the discount of 20% for subscription amounts in the interval from and including NOK 0 to and including NOK 7,500 will not trigger any taxation of the employees.

The discount of 20% in the interval from NOK 7,501 up to NOK 100,000 will be subject to taxation as salary. This benefit will be subject to taxation as salary, with a marginal tax rate of 47.8%. In addition the benefit will be subject to employer's social security contribution of 14.1%.

15.4 FOREIGN SHAREHOLDERS – NORWEGIAN TAXATION 15.4.1 Withholding tax on distributions Dividends distributed from the Company to shareholders (persons and corporations) not resident in Norway for tax purposes, are generally subject to Norwegian withholding tax. The general withholding tax rate on dividends is 25%, but is normally reduced to 15% (or lower) if a tax treaty applies.

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Dividends from the Company to non-Norwegian corporate shareholders resident within the EEA for tax purposes are exempt from Norwegian withholding tax if the shareholder (i) is a corporation that corresponds to a Norwegian corporate shareholder and (ii) is the beneficial owner of the shares (iii) is genuinely established and performs genuine economic activities within the relevant EEA member state.

Furthermore, personal shareholders resident in an EEA member state may apply individually to Norwegian tax authorities for a refund of an amount corresponding to the calculated tax-free return on each individual share, cf. above. However, the deduction does not apply in the event that the withholding tax rate, pursuant to an applicable tax treaty, leads to a lower taxation of the dividends than the general withholding tax rate of 25% less the tax-free return. Any tax-free return is only available upon application, and any refund is given after the end of the income year.

Nominee registered shares will be subject to 25% withholding tax unless the nominee has obtained an approval from the Norwegian Tax Directorate for the dividend to be subject to a lower withholding tax rate . To obtain such approval the nominee must file an application to the Norwegian tax authorities, which must include a summary of all beneficial owners that are exempt from withholding tax or subject to withholding tax at a reduced rate.

Non-Norwegian shareholders that have been subject to a higher withholding tax than set out in an applicable tax treaty may apply to the Norwegian tax authorities for a refund of the excess withholding tax.

If shares in the Company are held in respect of a business (permanent establishment) liable to taxation in Norway, dividends distributed from the Company will in general be subject to the same taxation as Norwegian shareholders, as described above.

15.4.2 The Company’s responsibility for the withholding of taxes Non-Norwegian shareholders subject to withholding tax on dividends from the Company are subject to advance tax payments. The Company is responsible for the withholding of all taxes levied on dividends to foreign shareholders and on nominee registered shares and obligated to report and pay withholding tax to the Norwegian tax authorities. The Company assumes this obligation.

15.4.3 Capital gains Non-Norwegian shareholders (persons and corporations) are not subject to Norwegian tax on capital gains generated from the sale or other disposal of shares in the Company.

Gains may be subject to Norwegian taxation for Non-Norwegian personal shareholders if the shareholder holds the shares in connection with business activities carried out or managed from Norway.

15.5 DUTIES ON TRANSFER OF SHARES No stamp duty or similar duties are currently imposed in Norway on the issuance or transfer of shares, neither on acquisition nor disposal.

15.6 INHERITANCE TAX When shares are transferred either through inheritance or as a gift, such transfer may give rise to inheritance or gift tax in Norway.

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16. LEGAL MATTERS

16.1 DISPUTES A court case was brought against Selvaag Bolig by Workzone AS with a compensation claim with addition of legal costs. Selvaag Bolig was not held liable by the District Court and was awarded legal costs. Workzone AS appealed the judgment to the Court of Appeal, but the parties thereafter settled the case. The settlement implied that Workzone AS withdrew the case from the court and both parties covered their own legal costs. The case was formally adjourned in a court order by the Court of Appeal dated 19 October 2011. Under all circumstances, by agreement dated 8 February 2011, all financial risk for the outcome of the dispute was transferred to Selvaag Gruppen AS, but Selvaag Bolig was the formal defendant.

In regard to Hansa Property, Oslo District Court passed a judgment on 7 February 2011 in a court case between Hansa Property and Skatt Øst. The case concerned the Hansa Property's claim for refund of NOK 4.6 million in incoming VAT on costs to real estate brokers in connection with the launch of Hansa Property in 2007. The District Court did not award a decision in Hansa Property’s favour. Hansa Property has appealed the judgment to the Court of Appeal, and the court hearing has been scheduled for 30 and 31 August 2012. The claim for refund of incoming VAT is entered as receivable against Skatt Øst in the accounts, but Hansa Property has as a precautionary measure decided to categorise the claim as lost in the in the annual financial statements.

Jaasund AS, a project company, has a pending dispute related to the expropriation of Jaasund in Sola municipality against two landowners. The dispute shall be settled by second appraisement valuation (Norwegian: overskjønn) by Gulating Court of Appeal. The judgment is expected at the turn of the year 2012/2013. The claim from the landowners is estimated to be in the region of NOK 1 to 1.5 million in total.

One of the Group’s associated companies, Sandvika Boligutvikling KS, has a pending dispute related to the calculation of water and waste water charge for the project. The disputed amount is approximately NOK 2 million. The Company has informed that legal steps will be considered if the municipality does not accept the Company’s view.

Hebo AS, a subsidiary in the Group, is involved in a dispute with JM Byggholt. JM Byggholt has claimed NOK 2,000,000 from Hebo AS, but Hebo AS is of the opinion that only NOK 1,000,000 of the claim is legitimate and that the claim has not yet been sufficiently documented.

In relation to the development project Sädesärlan in Stockholm, the decision by the municipality regarding adoption of a new zoning plan was appealed against. The appeal was rejected and finally approved by the Ministry of Environment as of 7 April 2011. In addition, the municipal procedure relating to the development project has been subject to an investigation on whether any mistakes have been made with respect to formal requirements. These allegations were rejected by “Förvaltningsrätten” and have not been appealed within the time limit. Subsequent to that, general permission has now been granted for the project.

Except for the above, the Group is currently not involved in any governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which the Group is aware), and has not been involved in any such proceedings during the previous twelve months, which may have, or have had in the recent past, significant effects on the Company and / or the Group’s financial position or profitability.

16.2 MATERIAL CONTRACTS In August 2011 the Company, Selvaag Gruppen AS and Selvaag Gruppen AS’s current owners, entered into an agreement regulating possible competition in connection with the reduction of ownership by Selvaag Gruppen AS in Selvaag Bolig and the contemplated stock exchange listing. The objective is to secure the value of the goodwill and knowhow built up by Selvaag Bolig after the reduction in ownership by the major shareholders and to facilitate stock exchange listing. Selvaag Gruppen AS and its owners have undertaken, with limited exceptions, not to operate or market business of new residential houses for sale in competition with Selvaag Bolig’s business, or undertake actions that can be perceived as such, factual and geographical. The term of the agreement is maximum five years, and conditional upon the ownership of Selvaag Gruppen AS is above 50%. If the ownership of Selvaag Gruppen AS in the Company is reduced to below 50% and Selvaag Gruppen AS no longer has sole control in the Company, the agreement shall be valid from three years from such time.

In August 2011 the Company entered into a license agreement with Selvaag Gruppen AS and Selvaag Pluss AS,

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regulating the rights to the “Selvaag” brand and related brands containing the “Selvaag” name, as well as related internet domain names. All brands containing the name “Selvaag” and listed in the agreement have been transferred to Selvaag Gruppen AS. The Company and Selvaag Pluss AS have been granted exclusive license rights to utilise the brands, business names and domains, as listed in the agreement, in connection with its business. The agreement has a duration of five years, and is thereafter automatically prolonged for three years, unless the agreement is terminated by either party at the latest two years before expiration of the current contract period. Selvaag Gruppen AS may also terminate the agreement with two years notice in case of a sale of the residential development business by the Company or by Selvaag Pluss AS, or if Selvaag Gruppen AS’ shareholding in the Company falls below 34%. In addition, Selvaag Gruppen AS may also terminate the agreement in relation to Selvaag Pluss AS if the Company’s shareholding in Selvaag Pluss AS falls below 34%. In case of such termination in relation to Selvaag Pluss AS, the agreement will continue in force solely in relation to the Company.

The Company has also entered into the Merger Agreement with Hansa Property, as further described in Section 6.1.4, agreements relating to the Private Placement towards the owners of SPE KS, as further described in Section 6.1.5, and agreements relating to the acquisition of the remaining part of Selvaag Bolig Rogaland AS, as further described in Section 6.1.6.

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17. SELLING AND TRANSFER RESTRICTIONS

17.1 GENERAL The Offering of the Offer Shares to persons resident in, or who are citizens of countries other than Norway, may be affected by the laws of the relevant jurisdiction. Investors should consult their professional advisors as to whether they require any governmental or other consents or need to observe any other formalities to enable them to apply for, purchase or otherwise trade in the Offer Shares.

The Group is not taking any action to register or qualify the Offer Shares or otherwise permit a public offering of the Offer Shares in any jurisdiction other than Norway. Receipt of this Prospectus will not constitute an offer in those jurisdictions in which it would be illegal to make an offer and, in those circumstances, this Prospectus is for information only and may not be copied or redistributed in whole or in part. Except as otherwise disclosed in this Prospectus, if an investor receives a copy of this Prospectus in any territory other than Norway, the investor may not treat this Prospectus as constituting an invitation or offer to it, nor may the investor in any event deal in the Offer Shares, unless, in the relevant jurisdiction, such an invitation or offer could lawfully be made to that investor, or the Offer Shares could lawfully be dealt in without contravention of any unfulfilled registration or other legal requirements. Accordingly, if an investor receives a copy of this Prospectus, the investor may not distribute or reproduce the same, in whole or in part, or transfer the Offer Shares to any person or in or into any jurisdiction where to do so would or might contravene local securities laws or regulations. If the investor forwards this Prospectus into any such territories (whether under a contractual or legal obligation or otherwise), the investor must draw the recipient’s attention to the contents of this section.

Except as otherwise noted in this Prospectus: (i) the Offer Shares being offered in the Offering may not be offered, sold, resold, transferred or delivered, directly or indirectly, in or into, Member States of the EEA that have implemented the Prospectus Directive (Directive 2003/71/EC), Australia, Canada, Hong Kong, Japan, the United States, or any other jurisdiction in which it would not be permissible to offer the Offer Shares (the “Ineligible Jurisdictions”); and (ii) this Prospectus may not be sent to any person in any Ineligible Jurisdiction;

If an investor makes an application for, takes up or otherwise deals in Offer Shares, that investor will be deemed to have made or, in some cases, be required to make, the following representations and warranties to the Group and any person acting on the Group’s or its behalf, unless such requirement is waived by the Group:

(a) the investor is not located in an Ineligible Jurisdiction,

(b) the investor is either a QIB as defined in Rule 144A under the Securities Act, or a person other than a “U.S. person” (as such term is defined in Rule 902 of Regulation S under the Securities Act) acquiring the Offer Shares in an “offshore transaction” outside the United States within the meaning of, and pursuant to, Regulation S,

(c) the investor understands that the Offer Shares have not been, and will not be, registered under the. Securities Act and may not be offered, sold, pledged, resold, granted, delivered, allotted, taken up or otherwise transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, registration under the Securities Act, and

(d) the investor may lawfully be offered, take up, subscribe for and receive Offer Shares in the jurisdiction in which it resides or is currently located.

The Group and any persons acting on behalf of the Group, including the Managers, will rely upon the investor’s representations and warranties contained herein. Any provision of false information or subsequent breach of these representations and warranties may subject the investor to liability.

Subject to the specific restrictions described below, if an investor (including, without limitation, its nominees and trustees) is outside Norway, and wishes to deal in or apply for Offer Shares, the investor must satisfy itself as to full observance of the applicable laws of any relevant territory including obtaining any requisite governmental or other consents, observing any other requisite formalities and paying any issue, transfer or other taxes due in such territories. The information set out this section is intended as a general guide only. If the investor is in any doubt as to whether it is eligible to apply for Offer Shares, that investor should consult its professional advisor without delay.

Subject to certain exceptions, financial intermediaries are not permitted to send this Prospectus or any other

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information about the Offering into any Ineligible Jurisdiction or to any Ineligible Persons.

No action has been or will be taken by the Managers to permit the possession of the Prospectus (or any other offering or publicity materials or application form(s) relating to the Offering) in any jurisdiction where such distribution may lead to a breach of any law or regulatory requirement.

Neither the Group nor the Managers, nor any of their respective representatives, is making any representation to any offeree, applicant or purchaser of the Offer Shares regarding the legality of an investment in the Offer Shares by such offeree, applicant or purchaser under the laws applicable to such offeree, applicant or purchaser. Each investor should consult their own advisors before applying for or purchasing the Offer Shares. Investors are required to make their independent assessment of the legal, tax, business, financial and other consequences of an application for or purchase of the Offer Shares.

A further description of certain restrictions on the Offering of Offer Shares is set out below.

17.2 UNITED STATES The Offer Shares have not been, and will not be, registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered, sold, taken up, exercised, resold, transferred or delivered, directly or indirectly, within the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and in compliance with the securities laws of any state or other jurisdiction of the United States. There will be no public offer of the Offer Shares in the United States. A notification of Offer Shares in contravention of the above may be deemed to be invalid.

The Offer Shares are being offered and sold only (1) in the United States in reliance on the exemption from registration provided by Rule 144A under the Securities Act only to QIBs (as that term is defined in Rule 144A) and (2) outside the United States to persons other than "U.S. Persons" (as that term is defined in Regulation S under the Securities Act ("Regulation S")) in offshore transactions in reliance upon Regulation S.

Any recipient of this document in the United States is hereby notified that this document has been furnished on a confidential basis and may not to be reproduced, retransmitted or otherwise redistributed, nor may the contents of this document be disclosed, in whole or in part, without the Company’s prior written consent under any circumstances. Furthermore, recipients are authorised to use it solely for the purpose of considering a purchase of the Offer Shares in the Offering and may not disclose any of the contents of this document or use any information herein for any other purpose. This document is personal to each offeree and does not constitute an offer to any other person or to the public generally to subscribe for or otherwise acquire the Offer Shares. Any recipient of this document agrees to the foregoing by accepting delivery of this document.

Until 40 days after the commencement of the Offering, any offer or sale of the Offer Shares within the United States by any dealer (whether or not participating in the Offering) may violate the registration requirements of the Securities Act.

In making an investment decision with respect to the Offer Shares, investors must rely on their own examination of the Company and the terms of this Offering, including the merits and risks involved. The Offer Shares have not been recommended, approved or disapproved by the SEC, any state securities commission in the United States or any other United States regulatory authority nor have any of the foregoing authorities passed upon or endorsed the merits of the Offering of and the Offer Shares or the accuracy or adequacy of this document. Any representation to the contrary is a criminal offense in the United States.

Prospective investors are advised to consult legal counsel prior to making any resale, pledge or transfer of the Offer Shares. Prospective investors that are U.S. persons or have a registered U.S. address (each a "U.S. Investor") will be required, prior to the purchase of Offer Shares, to execute a “Qualified Institutional Buyer Certificate” in the form provided to each U.S. Person by or on behalf of the Company.

Rule 144A Offer Shares

Each U.S. Investor, by participating in the Offering described herein and as a condition to such participation, will be deemed to have represented and agreed, on its behalf and on behalf of any investor accounts for which it is purchasing or applying for Offer Shares, as the case may be, that it has received a copy of this document and

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such other information as it deems necessary to make an investment decision and that:

(a) the offer and sale of the Offer Shares is being made in a transaction exempt from the registration requirements of the Securities Act pursuant to Rule 144A,

(b) the Offer Shares have not been offered to it by the Company by means of any form of “general solicitation” or “general advertising” (within the meaning of Regulation D under the U.S. Securities Act),

(c) it is (i) a QIB and (ii) purchasing the Offer Shares for its own account or for the account of a QIB with respect to which it exercises sole investment discretion and it has full power to make the acknowledgements, representations and agreements herein on behalf of each such account, and (iii) aware, and each beneficial owner of such Shares has been advised, that the sale of Offer Shares to it may be made in reliance on Rule 144A under the Securities Act or another exemption from the registration requirements thereof, and

(d) it agrees that it will not re-offer, resell, pledge or otherwise transfer any of such shares except (i) outside the United States in accordance with Rule 903 or 904 of Regulation S under the U.S. Securities Act, (ii) to a person who the U.S. Investor reasonably believes is a QIB and who is purchasing the Offer Shares for its own account, or the account of another QIB, to whom notice is given that the resale, pledge or other transfer is being made pursuant to Rule 144A, (iii) in a transaction that is registered under the U.S. Securities Act or (iv) pursuant to another exemption from registration under the U.S. Securities Act (if available).

Regulation S Offer Shares

Each person to whom Offer Shares are distributed, offered or sold outside the United States, by participating in the Offering described herein and as a condition to such participation, will be deemed to have represented and agreed, on its behalf and on behalf of any investor accounts for which it is purchasing or applying for Offer Shares, as the case may be, that it has received a copy of this document and such other information as it deems necessary to make an investment decision and that:

(a) it is authorized to consummate the purchase of Offer Shares in compliance with all applicable laws and regulations,

(b) it acknowledges (or if it is a broker-dealer acting on behalf of a customer, its customer has confirmed to it that such customer acknowledges) that the Offer Shares have not been, and will not be, registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction of the United States,

(c) it was, and the person, if any, for whose account or benefit it is acquiring the Offer Shares was, located outside the United States at the time the buy order for the Offer Shares was originated and continues to be located outside the United States and has not purchased the Offer Shares for the benefit of any person in the United States or entered into any arrangement for the transfer of the Offer Shares to any person in the United States,

(d) the Offer Shares have not been offered to it by means of any “directed selling efforts” as defined in Regulation S, and

(e) it will not offer, sell, pledge or transfer any Offer Shares, except in accordance with the Securities Act and any applicable laws of any state of the United States and any other jurisdiction.

Any resale or other transfer, or attempted resale or other transfer, made other than in compliance with the above stated restrictions shall not be recognised by the Company or the Managers.

The Company, the Managers and their affiliates, and others will rely upon the truth and accuracy of the foregoing acknowledgements, representations and agreements.

17.3 UNITED KINGDOM The information contained in this Prospectus is confidential, and has not been (and will not be) approved by an authorised person for the purposes of Section 21 of the Financial Services and Markets Act of 2000, as amended

145

( "FSMA’’). In the United Kingdom, the Prospectus is being distributed to, and is directed only at, qualified investors, (i) who are investment professionals (within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the ‘‘Order’’)), (ii) who fall within Article 49(2)(a) to (d) of the Order, and (iii) to whom an invitation or inducement to engage in investment activity (within the meaning of Section 21 of FSMA) in connection with the issue or sale of any securities may otherwise lawfully be communicated (all such persons together being referred to as ‘‘Relevant Persons’’). The Prospectus must not be acted on or relied on in the United Kingdom by persons who are not Relevant Persons. Any investment or investment activity to which the Prospectus relates is available only to Relevant Persons in the United Kingdom and will be engaged in only with such persons. All applicable provisions of FSMA (including secondary legislation there under) must be complied with in respect of anything done in relation to the Offer Shares in, from or otherwise involving the United Kingdom. Persons who are not Relevant Persons should not rely on, nor take any action on the basis of, this Prospectus.

17.4 EEA-MEMBER STATES In relation to each Member State of the EEA other than Norway which has implemented the Prospectus Directive (each a “Relevant Member State”) an offer of the Offer Shares which are the subject of the Offering contemplated by this Prospectus may not be made to the public in that Relevant Member State except that an offer in that Relevant Member State of any Offer Shares may be made at any time under the following exemptions under the Prospectus Directive, provided such exceptions have been implemented in that Relevant Member State:

(i) to legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities; (ii) to any legal entity which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than €43,000,000 and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated accounts; (iii) to fewer than 100 natural or legal persons (other than qualified investors as defined in the Prospectus Directive) subject to obtaining the prior consent of the Managers for any such offer; or (iv) in any other circumstances falling within Article 3(2) of the Prospectus Directive, provided that no such offer of Offer Shares shall result in a requirement for the publication by the Company or any Underwriter of a Prospectus pursuant to Article 3 of the Prospectus Directive.

For the purposes of this provision, the expression an “offer to the public” in relation to any Offer Shares in any relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and any Offer Shares to be offered so as to enable an investor to decide to purchase any Offer Shares, as the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the expression “Prospectus Directive” means Directive 2003/71/EC and includes any relevant implementing measure in each Relevant Member State.

17.5 CANADA The Offer Shares have not been and will not be qualified by a prospectus for sale to the public in Canada under applicable Canadian securities laws, and accordingly, any offer or sale of the Offer Shares in Canada must be made pursuant to an exemption from the applicable prospectus and registration requirements, and otherwise in compliance with applicable Canadian laws.

146

18. ADDITIONAL INFORMATION

18.1 DOCUMENTS ON DISPLAY Copies of the following documents will be available for inspection at the Company’s registered office during normal business hours from Monday to Friday each week (excluding public holidays) for a period of 12 months from the date of this Prospectus:

i. the Memorandum of Incorporation and Articles of Association of the Company; ii. the historical financial information of the Company and its subsidiary undertakings for each of the two financial years preceding the publication of this Prospectus; iii. stock exchange notices, including quarterly reports, distributed by the Company through the Oslo Børs’ information system after the submission of the application for listing; iv. all reports, letters, and other documents and statements prepared by any expert at Company’s request any part of which is included or referred to in the Prospectus.

18.2 DOCUMENTS INCORPORATED BY REFERENCE The information incorporated by reference to this Prospectus should be read in connection with the cross reference list as set out in the table below. The following documents have been incorporated hereto by reference

Section in Disclosure Reference document and link Page (P) in Prospectus requirements reference of the document Prospectus Section 9, Audited Selvaag Bolig ASA – financial statements and directors report for P 44 and P 36 10, 11, 12 historical 2011, with comparative figures for 2010 (IFRS): financial http://www.selvaagbolig.no/Investor/Rapporter/ information (Annex I, Section 20.1)

Section 10, Audit report Selvaag Bolig ASA – Auditor’s report 2011: P 96 11, 12 (Annex I, http://www.selvaagbolig.no/Investor/Rapporter/ Section 20.4.1)

Section 10, Accounting Selvaag Bolig ASA – Accounting principles (note 2 to the consolidated P 48 11, 12 policies financial statements 2011): (Annex I, http://www.selvaagbolig.no/Investor/Rapporter/ Section 20.1)

147

19. DEFINITIONS AND GLOSSARY OF TERMS ABG Sundal Collier or ABGSC ABG Sundal Collier Norge ASA Audit committee The Company’s audit committee Application Period The period in which orders may be forwarded to the Managers in respect of the Offering in the Retail Offering and the Employee Offering, expected to take place from 23 May 2012 at 09:00 hours (CET) to 7 June 2012 at 12:00 hours (CET), unless shortened or extended Articles of Association The articles of association of Selvaag Bolig ASA Board of Directors or Board The board of directors of Selvaag Bolig ASA Book-building Period The period in which orders may be forwarded to the Managers in respect of the Offering in the Institutional Offering, expected to take place from 23 May 2012 at 09:00 hours (CET) to 7 June 2012 at 17:30 hours (CET), unless shortened or extended CET Central European Time Company or Selvaag Bolig Selvaag Bolig ASA, or when the context so requires the Selvaag Bolig Group Code The Norwegian Code of Practice for Corporate Governance issued by the Norwegian Corporate Governance Board on 21 October 2010 with amendments as of 20 October 2011 DNB DNB Bank ASA DNB Markets DNB Markets, a part of DNB Bank ASA EBITDA Earnings before interest, tax, depreciation and amortisation EBIT Earnings before interest and tax EEA The European Economic Area Eligible Employees Employees in Selvaag Bolig ASA and its Norwegian subsidiaries owned by 90% or more as of the last date of the Application Period, eligible to participate in the Employee Offering, subject to said employee is taxable to Norway Employee Offering As described in Section 5.7 “The Employee Offering” EU The European Union EUR Euro, the lawful currency of the participating members states in the European Union Foreign Shareholders Shareholders who are not resident in Norway for tax purposes Group or the Selvaag Bolig Group The Company and its subsidiaries (as defined by Section 1-3 of the Norwegian Public Limited Companies Act) Selvaag Bolig Selvaag Bolig ASA, the parent company of the group of companies GDP Gross Domestic Product, the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports Greenshoe Option Option granted to ABGSC to buy the Additional Shares initially allocated in the Offering to cover over-allotments in connection with the Offering handle short position, if any, exercisable within a 30-day period commencing at the time trading in the Shares on Oslo Børs IFRIC International Financial Reporting Interpretation Committee IFRS International Financial Reporting Standards Ineligible Jurisdictions Member States of the EEA that have implemented the Prospectus Directive (Directive 2003/71/EC), Australia, Canada, Hong Kong, Japan, the United States, or any other jurisdiction in which it would not be permissible to offer the Offer Shares Institutional Offering As described in Section 5.5 “The Institutional Offering” Listing The listing of the Company’s shares on Oslo Børs Listing Application The Company’s application for listing of the Company’s shares on Oslo Børs submitted 23 April 2012 Managers DNB Markets (a part of DNB Bank ASA), ABG Sundal Collier Norge ASA and Pareto Scurities AS, collectively Money Laundering Act The Money Laundering Act of 20 June 2003 no. 41 (“Hvitvaskingsloven”)

148

NGAAP Norwegian Generally Accepted Accounting Principles NOK Norwegian Kroner, the lawful currency in the Kingdom of Norway Norwegian Shareholders Shareholders who, for tax purposes, are resident in Norway NRBE The Norwegian Register of Business Enterprises (“Foretaksregisteret”) Offering The global offering in an amount of NOK 500 million to NOK 800 million, with an Over-Allotment Option of an additional 10%, through the issuance of the maximum number of 34,093,398 Offer Shares (including any Shares issued pursuant to the Greenshoe Option) The shares will be offered in an Institutional Offering, a Retail Offering and an Employee Offering Offer Price The price to be paid for the Offer Shares in the Offering Offer Shares Up to 34,093,398 new Shares to be offered by the Company in the Offering Order Form The application form to be used by investors when ordering shares in the Retail Offering or the Employee Offering Order Period The period in which shares may be ordered, expected to take place from 23 May 2012 at 09:00 hours (CET) to 7 June 2012 at 12:00 hours (CET) for the Retail Offering and the Employee Offering and 17:30 hours (CET) for the Institutional Offering, unless shortened or extended Oslo Børs Oslo Børs or Oslo Børs ASA (the Oslo Stock Exchange), as required by context Oslo Axess A Norwegian regulated market place, operated by Oslo Børs ASA Over-Allotment option Option granted to ABGSC to over-allot a number of Shares representing up to 10% of the aggregate final number of Offer Shares (the Additional Shares) as determined following determination of the Offer Price Pareto Securities Pareto Securities AS Payment Date The expected date for payment of Offer Shares, on or about 13 June 2012 Prospectus This Prospectus dated 22 May 2012 prepared in connection with the Offering and the Listing on Oslo Børs Indicative Price Range The indicative price range set by the Board in consultation with the Managers prior to the offering of shares, being NOK 25 to NOK 32 per Share. The final price per share may be set higher or lower at the sole discretion of the Board according to normal market practice PricewaterhouseCoopers PricewaterhouseCoopers AS in Norway, the auditors of the Company Norwegian Public Limited The Norwegian Public Limited Companies Act of 13 June 1997 no. 45 Companies Act (“Allmennaksjeloven”) QIB Qualified Institutional Buyer, as defined in Rule 144A under the Securities Act Retail Offering As described in Section 5.6 “The Retail Offering” Rule 144 A Rule 144 A under the US Securities Act SEC The US Securities and Exchange Commission Securities Act The Securities Act of 1933, as amended Norwegian Securities Trading Act The Norwegian Securities Trading Act of 29 June 2007 no. 75 (“Verdipapirhandelloven”) Shares Ordinary shares in the Company, each with a par value of NOK 2.00, including the new Shares to be offered by the Company in the Offering Stabilisation Manager ABG Sundal Collier Norge ASA US Exchange Act The United States Securities Exchange Act of 1934, as amended US Securities Act The United States Securities Act of 1933, as amended VPS Verdipapirsentralen (the Norwegian Central Securities Depository), which organizes the Norwegian paperless securities registration system VPS account An account with VPS for the registration of holdings of securities

149 THIS PAGE INTENTIONALLY LEFT BLANK

150 Appendix 1: Articles of Association for selvaag bolig asa

A 1 A 2 Appendix 2: consolidated financial statements selvaag bolig Q1 2012 witH comparative figures Q1 2011 (IFRS)

- - - - -

648 776 2011 (0.15) 7,140 (28,975) 148,082 309,822 381,682 (354,862) 1,206,842 5,424,738 3,565,928

- - - - -

87 16 na

536 7,831 (6,530) (5,813) (6,385) 41,198 41,198 (10,911) 689,940 1,169,508

- - - - - 74 244 188 0.09 (196) 18.9% -15.9% 12.3% 22.9% 27.2% 24.2% 16,350 (83,371) 710,213 134,151 191,971 Q1 2012 Q1 2011 (324,795) 3,813,284 5,744,636 en 74 units (16) were (16) were units 74 en

Q1 2012 2012 Q1

) 2

amounted to NOK 3 598 million (NOK 2 853 million) 853 2 (NOK million NOK598 3 to amounted Figures in brackets relate to the same period of the before year period of relatesame to Figures inthe brackets completed and all delivered all and completed is backlog, which order The (847). March 31 at construction under were units of 1 128 total A units, for these value sales Good sales figures with 244 units sold (87) sold units 244 with figures sales Good at 40 Oslo, in Nissen Fernanda at flats 79 quarter: the in homes 249 for started Sales 39 and Stavanger, in houses terraced 21 and 36 Tønsberg, in 43 Lørenskog, in Vestparken Stockholm in flats wh quarter, the (529) during flats 188 on started Construction (

EBITDA margin Earnings per share (whole NOK) (whole per share Earnings Operating revenues Operating EBITDA units sold of Number (figures in NOK 1 000) figures main IFRS revenues Operating Operating profit/(loss) Cash flow from operating activities Equity ratio Segment reporting (NGAAP): Key figures: * EBITDA is operating profit before depreciation, gains (losses) and profit from associated companies. Profit/(loss) before taxes before Profit/(loss) Net c ash flow Interest-bearing liabilities Total assets and liabilities Number of started units started of Number units delivered of Number  Highlights the of first quarter 2012    Key figures First quarter results 2012 Q1

A 3

of -

2011 mergers mergers (28,975)

13,525 32,852 381,682 395,207 703,692 (354,862) bearing debt debt bearing

down of loans. of down - - capital expansion expansion capital

due to be redeemed be redeemed due to 7,831 (6,385) 13,525 21,356 62,039 (10,911) (43,297)

current interest - - o the net draw o the (196) (5,932) (83,371) 395,207 311,836 247,356 Q1 2012 Q1 2011 (324,795)

Q1 2012 2012 Q1

bearing debt was NOK 1 317.9 million (NOK bearing debt was NOK 689.9 d homes. That reduced operational cash flow by by flow cash operational reduced That d homes. At 31 March, consolidated non consolidated March, At 31 amounted to NOK 2 495.4 (NOK 0) and consolidated current current consolidated and 0) (NOK 495.4 2 NOK to amounted interest- 324.8 million for the quarter (NOK 10.9 million). The The million). 10.9 quarter (NOK the for million 324.8 in reflect changes primarily flow changescash net in increase substantial a in resulting from capital working andreceivable from accounts in activity construction delivere million. NOK 322.3 was quarter the for activities investing from flow cash Net million). 43.3 (NOK million 5.9 negativeNOK at was 247.4 NOK activities financing from flow cash Net t which corresponds million, byNOK anddeclined equivalents cash cash of The holding (NOK million 311.8 NOK to quarter the during million 83.4 million). 21.4 and acquisitions reflect Thesemillion). increases construction increased as well as 2011 in carried out activity. 500 NOK of facility credit unsecured an has The group is This company. parent the in million planned the after part in wholly or ASA. Bolig Selvaag listing of stock exchange the to related new a of Inland the credit addition, has established group is to allocated million sites. This eight 550 NOK different progress with the line in loans construction converted to project.each 150 NOK of facility overdraft has an group the Moreover, 31 at entirety down its in been drawn which hadmillion, 4 y in a

tax loss of NOK NOK of loss tax -

of NOK 16.4 million million 16.4 NOK of

tivities was negative at NOK NOK at negative was tivities y NOK 5.9 million (loss of NOK 4.2 4.2 NOK of (loss million 5.9 y NOK

31 December and NOK 369 million a year earlier. earlier. year a million 369 and NOK December 31

tax loss for the quarter was NOK 0.2 million, an an million, was 0.2 quarter NOK the for loss tax - (NOK 21.4 million) at million) 31 21.4 March. (NOK Net cash flow from operating activities operating from flow cash Net (figures in NOK 1 000) NOK in (figures Cash and cash equivalents at start of period Cash and cash equivalents at end of period Profit before taxes before Profit activities investment from flow cash Net equivalents cash and cash in chang Net Net cash flow from financing activities financing from flow cash Net and units, 11 of delivery with the Vest, Kjørbo projects Stord Industribygg. Results profit made operating an The group the for million) quarter. 5.8 NOK (loss of 0.6 (NOK million 16.5 NOK expenses were financial Net was income 6.1 tax NOK thefor million) Net quarter. The consolidated quarter. the for million) 2.2 (NOK million was accordingl net profit million). Cash flow The pre million pre 6.2 NOK a from of improvement Condensed cash flow statement position Financial (land, Selvaag Bolig’s inventories amountof The carried homes)31 at completed and under construction housing million, 211 with 4 NOK compared was 494.2 4 March NOK at million 2011 March from 31 substantially The amountwas boosted and the PropertyGroup with Hansa by the merger Pluss shares Selvaag in the remaining of acquisition activit of high level while the En, Bo Eiendomand value. inventory enhanced further projects number of 317.8 (NOK million 316.5 was 1 NOK March 31 Equityat cent per 22.9 of ratio equity an to corresponding million), per(27.2 cent). 311.8 NOK of equivalents and cash cash held The group million 6.4 million in the same period of 2011. Consolidated net net 2011. period of Consolidated same thein million 6.4 ac operational from cash flow

- 2011 -owned -owned 7,140 75,074 23,265 (5,710) (36,115) (28,975) (199,002) (178,754) 309,822 (302,682)

- llion) recognisedllion) as 814 (572) 2,160

(5,813) (6,385) (4,225) (20,404) (27,421) 41,198 (47,011)

roject costs and associates) costs and associates) roject - (196) 7,431 6,080 5,884 (47,020) 16,350 (16,546) (136,032) Q1 2012 Q1 2011 in step with the starta in with sales step to in

191,971 (175,621)

Q1 2012 2012 Q1 . . developer developer Operating costs costs Operating no wholly owned projects were delivered in the first the first in delivered were projects nowholly owned 2011. quarter of came to NOK 47 million (NOK 27.4 million) for the for 27.4 (NOK million) quarter. million 47 NOK to came 15.5 (NOK million 15.4 NOK to Payroll costs amounted were million 4.1 NOK costs of payroll Inmillion). addition, be and will development, under housing as capitalised goodsof on delivery. expensed cost as thefor million 26.5 NOK to costs increased Other operating Bolig’s Selvaag rise This reflects million). 11.8 quarter (NOK largest Norway’s group as the of promotion continued building Operating costs (excluding p costs (excluding Operating share of gain from disposal of associates and joint ventures ventures joint and associates of disposal from gain of share part the from contributions represents primarily number of projects. In addition, the group has strengthened the group has strengthened addition, In projects. number of listing. exchange stock a for prepared and organisation its experience group will the than higher is costs of The level in normal operation. NOK(lossmillion mi of The 7.4 NOK 0.2 3

four four homes were - from other projects projects from other owned (associate) companies. Following the merger with Hansa Property Group AS and the the and AS Group Property Hansa with merger the Following companies. (associate) owned

- deliveries were made in the the in made were deliveries

external external

of Selvaag Pluss Eiendom KS during the third quarter of 2011, and the acquisition of Bo En AS in the En AS Bo fourth and theof acquisition 2011, quarter of third the during KS Pluss Selvaag Eiendom of ered, including 63 from wholly owned projects, which which projects, owned from wholly 63 including ered, Project expenses Project Total operating revenues operating Total Operating profit Net financial expenses Profit before taxes Inc ome taxes (figures in NOK 1 000) NOK in (figures cost, payroll and pay expences, Other operating depreciation and amortisation ventures joint and companies Associated Total operating expenses Net income acquisition acquisition Bolig Selvaag ASA in now are consolidated themajorityprojects of quarter,the The inventories. as capitalisation for qualify which do not that fact the to relation in viewed be must costs in increase Financial review formerly have projects because quarters previous years and earlier with comparable directly is not 2012 of quarter first The part through largely owned been Condensed profit and loss statement revenue Operating period of thecorresponding to relate brackets (Figures in The figures 2011. are unaudited.) 2012. quarter of first costs Project (NOK million 136 NOK to quarter came the for Projectcosts costs construction to primarily relate These million). 20.4 costs well as delivered as homesfor Consolidated revenue came to NOK 192 million (NOK 41.2 41.2 (NOK million 192 NOK to came revenue Consolidated Seventy thein quarter. million) first deliv million the revenue. of accounted 143.5 NOK The for group the in same projects ownedwholly from had nodeliveries includes quarter also Revenue first the for 2011. of period site to a sale of the from income in million 22.3 NOK Other to authority. relates local revenue Lørenskog agency estate mainly outside business, theactivities core of million) 19 (NOK proportion A large letting. and services derivedexternal from 2011 of quarter the first revenue in module deliveries. No No deliveries. module

A 4

- -

892 (5,153) (1,552) (5,813) est of est

– Other

– R (224) 29,150 (17,325) (99,271) 16,350 104,020 liveries, services, and and services, liveries, Operating profit/loss

- - - ancial expenses. ancial rest of businessNorway area. of rest

892 – (7,422) -6,530

covers projects with group involvement with group involvement projects covers Q1 2012 2012 Q1

EBITDA and is broken down into housing development development housing into down broken is and

(110) 40,324 (15,671) 14,093 109,608 (120,058)

Norway Norway reporting, but will be shown in the IFRS accounts when the the when accounts the IFRS in shown bebut will reporting, project is delivered. Housing development development Housing of region and the central Oslo Greater to In addition on large concentrating is Bolig Selvaag Norway, eastern by covered are These country. the of parts other towns in the development housing development Housing countries segment This the in were under construction projects outside No Norway. a for started sales but quarter, the first segmentduring has Selvaag Bolig However, project Stockholm. in Operating revenue for the first quarter was NOK 244 million the for million first revenue Operating quarter was 244 NOK and primarily came 0), projectsfive (NOK from Stavanger in and one Bergen. in movecosts, line in construction including costs, Operating the in million 203.7 NOK to and amounted projects with the fin quarter exclusive of first was segment the for million 40.3 NOK of An EBITDA per 16.5 cent of margin EBITDA an and yielded satisfactory, value added of expensing the including quarter, thein first groupat level. - - - 6 4,268 36,930 41,198

K 451.9 K 451.9 east and iates. An An iates. - 531 Q1 12 Q1 11 Q1 12 Q1 11 Q1 12 Q1 11 13,713 244,048 451,921 (518,242) 191,971 - Greater Operating revenues

sharing rather than a project project a than rather sharing -

west. - t is making a positive contribution to the EBITDA EBITDA the contribution to positive makingis t a

- Rest- of Norway Other countries - Property development Property Oslo Greater - Other IFRS adjustments (figures in NOK 1 000) Total group Total divided geographically between Greater Oslo, the rest of Norway and other countries. Reporting also embraces the “other business” segment. The statements latter financial the to 4 Note activity. the of scale the of because segments other the to not allocated administration includes estate agency activities (IFRS). figures reporting financial with reconciled information presents segment in Selvaag Bolig, module de Segments first quarter Oslo Operational reporting Bolig Selvaag in segments defined thewith accords reporting Operational development Housing region, Oslo enlarged an in projects segmentembraces This the in Moss to south north the in Jessheim from the in south Tønsberg NO was quarter first the for revenue Operating different 16 from derived This million). 4.3 (NOK million quarter. first started the in which were of five projects, local Lørenskog site to a sale of the includes Revenue million. 22.3 NOK for authority costs, construction including costs, Operating move line in the in million 342.3 NOK to and amounted projects with the financial of are exclusive costs Construction quarter. first expenses. depreciation, (loss)before profit operating EBITDA presents assoc (loss) from profit of share (loss)gain and cent per 24.2 of margin a and million 109.6 NOK EBITDA of positive the represent outcome of solidare as and regarded The control. and cost sales with good combined progress investors. external by guaranteed partly is project Løren 2B projec This this in significant which is guarantee, the since margin profit as project, treated is (guarantor) minority cumulative the March, At 31 cost. 23.5 NOK projectat put is this from profit the of share which 6NOK This of million, relates million 2012. to segment emergethe from not thedoes profit of disposition

2011 (395,207) 2,376,300 1,189,628 3,170,721

107 million, while while million, 107 -

Total (21,356) 3,813 689,940 668,584

(311,836) Q1 2012 Q1 2011 oan from Selvaag Gruppen of NOK 165 165 NOK of Selvaag Gruppen from oan 2,495,393 1,317,891 3,501,448

Q1 2012 2012 Q1 million) 1,350 NOK Buildingloans ion. The loan will be paid off along with listing of along with listing of paid off will be The loan ion. Land loan interest charges are added to the carrying the to carrying are added charges Land interest loan the landamountof the from is day planning permission the carrying 2012, March At 31 project. secured the for 1 NOK was on loans interest of amount NOK 546 million in interest on loans was recognised in the the in was loans interestrecognised in million on 546 NOK statement.income

The companyhas a l mill the Exchange. OsloSelvaag Bolig at Stock 2012 ( 5 ch ar 3 31 M

1,653 Plot loansPlot

up of new projects. This This projects. up new of -

bearing debt falls into three three into falls debt bearing -

up loan up 810

- Top bearing debt debt in Selvaag Bolig ASA, land loans and ASA, land Bolig and loans Selvaag in debt

– 0 0 y remainedMarch. 31 undrawn at up loans of NOK 810 million, land loans of NOK 1 65 1 NOK land of million, loans 810 NOK of up loans - 4 000 000 4 000 3 000 2 000 1 (figures in NOK 1 000) NOK in (figures debt interest-bearing Non-current debt interest-bearing Current equivalents cash and Cash debt Net interest-bearing million and construction loans of NOK 1 350 1 NOK million. of and loans million construction NOK of facility overdraft an comes In addition 2012. March the finance start to million 150 interest-Net interest the of The bulk categories ASA Selvaaghad Bolig 2012, March At 31 loans. construction top interest-bearingNet debt distribution as of facilit

A 5

14 74

188 244 1,128 3,598

98 14 80

145 Other countriesOther 1,014 3,243

71 % % 71

n Oslo, Lørenskog, Moss, n Moss, Oslo, Lørenskog, Norway andNorway eight abroad.

- 4 % 100 995 247

sales from wholly or partly owned owned partly wholly or from sales 3,117

Rest Norwayof Rest

25 % % 25 Q1 2012 2012 Q1 49 15

- 895 170

2,919

Greater Oslo Greater

companies came to 244 units (87) in the first quarter of of quarter first the in (87) units 244 to came companies 2012 . Geographically, the 244 units broke down into 175 in in units broke thedown 175 244 into Geographically, the in rest61 Greater of Oslo, The company has projects i Tromsø, Trondheim, Stavanger, Kristiansand, Jessheim, are currently projects no However, Bergen and Stockholm. Tromsø or Stockholm. Trondheim, in under construction sold Units of Selvaag Bolig’s share Distribution of sales Projects Projects 87 16 18

48% 59% 71% 72% 79% 529 847 8 2,853 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

2012 Q4

Q1 . To manifest value creation in the in creation the value manifest . To 2011 244 units during as 244 quarter the regarded is

- 700 600 500 400 300 200 100

Number of units sold units of Number units commenced of Number completed units of Number production in units of Number production in units sold of Proportion units unsold completed of Number Order bac klog (NOK million)

Review of operations Operations thein groupThe level of activity high,of is number a sales of and been launched have projects construction risen have homes the costs in and revenue shows reporting segment company, had the that company the assumption various on projects its as method completion of theused percentage principle. accounting developmentQuarterly portfolio project trends Market The sale of Number of units sold positive, and represents a substantial increase on 2011 increase on 2011 substantial a positive,and represents the in whenquarter. first units were sold 87 tion, tion,

Q1 2012 2012 Q1

. the remaining interests in Selvaag Pluss Eiendom and Bo En En Bo and Eiendom Pluss Selvaag in interests the remaining in 2011. NOK to segmentamounted the for costs operating Total quarter. These thefor million) first 44.4 (NOK million 29.4 administra and management to attributable are largely Operating revenue in the first quarter 0.5 NOK theto in came first revenue Operating while income, rental to entirety its in attributable million, managementin million of costs totalled0.6 NOK operating letting stock a group for the preparing and promotion company exchange listing. 7.4 (NOK million 15.7 NOK of EBITDA negative a yields This satisfactory considered is which segment, the for million) period the given in pursued the activities 7

the acquisition of of acquisition the

unallocated unallocated – management which cannot be attributed bewhich cannot attributed management ities related to Meglerhuset Selvaag and provision of of provision and Selvaag Meglerhuset to related ities ther business business ther

Operating revenue for the first quarter came to NOK 13.7 13.7 NOK to came quarter first the for revenue Operating largelyto is This million). attributable 36.9 (NOK million activ this in segment 2011 in was Revenue higher services. deliveries, module external had then group the because the after deliveries internal as regarded be to which are and PropertyGroup merger with Hansa be to more group wants the and operations Sweden in the in there involved future.strongly O of number a comprises segment business other The the in on betheir group cannot considered activities which business. Itincludes also theown part as core of and administration to accordingly allocated not and are projects directly the to segments. the development housing

A 6 at

growing in in growing - portfolio of 2012. nce on future nce on future ts, price growth growth ts, price

for d expectations of of d expectations ongest. ongest.

target sales Expectations of future future of Expectations

particularly in and around the largest andin aroundlargest particularly the es, Selvaag Bolig is well positioned to to positioned well is Bolig Selvaag es,

– economic conditions contribute to to contribute conditions economic - dence in their own financial position and and position own financial their in dence Q1 2012 2012 Q1 2010. 2010. However, housing demand estimated is ready sit Risk andRisk uncertainty factors Selvaag Bolig ASA is a housing developer. It accordingly It accordingly developer. housing ASA a Selvaagis Bolig builds it sell to what unable being risk a of faces prices. predetermined parameters are among the rates and interest unemployment private by homes new of purchase the which affect single the building costs is of Development individuals. biggestinflue expected have to thefactor margins the for company. Outlook the housing 2011, the of end towards After out flattening this upturn and quarter first during the marketrecovered April.the to According during further strengthened Agen Estate Real of Norwegian Association year ago. a cent than higher per 8.5 period was during the by or April, to March from cent per 1.5 by rose prices House basis. per 0.9 centseasonallyadjusted on a Housing starts in 2011 totalled about 26 000 units, a clear clear a units, 000 about26 totalled 2011 in Housing starts increase from units per be theto 000 Norwegian well year, 30 and over gap between by big a characterised is housing market supply and demand the national economy in theeconomyin come. to the time national is and quarter, the first during homes 244 sold Selvaag Bolig well reaching to on way its its cities where population growth is at its strits at is growth where population cities are theand Oslo,Stavanger areas Selvaag Bolig’s priority among thewhich fastest are Bergen regions, be will homes new need for the Europe.Consequently, solid a theWith in come. substantial to time construction- this growth. participate in trend, demographic advantageous an to In addition favourable macro Good market. housing the in progress continued rates an low employment growth, interest strengthen expected to are pay growth favourable with Combined during 2012. power purchasing household The enhancesecurity. job this helps low to unemployment, have a Norwegianlatestopinion that consumers polls show more positive confi 10

4.0% 0.4% 0.4% 0.4% 0.5% 0.5% 0.5% 0.6% 0.8% 0.8% 1.0% 1.1% 1.2% 5.3% 5.3% 4.7% 4.5% 4.0% 1.7% 1.7% 96.0% 60.5% 100.0% % share 2 .201 254,507 261,960 278,089 340,924 351,449 353,359 383,225 522,829 534,501 710,033 753,238 813,318

2,717,267 3,604,856 3,604,856 3,235,517 3,075,624 2,741,388 1,181,968 1,181,968 41,285,920 # of shares 68,186,796 65,469,529

Norwegians. - pany had 96 shareholders at 31 March, of whom of March, 31 at shareholders 96 pany had Other shareholders Total number of shares Total 20 largest shareholders Leif Hubert Eiendom Leif Statoil Pensjon Statoil Jasto AS M egaron AS Hustadlitt AS Hustadlitt AS Wingana SEB Enskilda ASA MP Pensjon Lema AS Rotac AS Veidekke Eiendom AS Eiendom Veidekke Ferd Eiendomsinvest AS Eiendomsinvest Ferd Havfonn AS Havfonn Tudor AS Skips IKM Eiendom AS Livsforsikring Storebrand AS Finans Svithun TS Eiendom AS AS Invest Toluma Selvaag Gruppen AS Selvaag Shareholder Share information The com four were non 20 shareholders largest per 31.03

Segment Oslo Greater Oslo Greater Oslo Greater

Category Flats Flats Flats ready site. ready - 43 20 11 74 # units

Q1 2012 2012 Q1 ASA signed a letter of intent in February letter intent February a in of ASA signed

Project Vestparken Utsikten Kjørbo Total Units delivered

The company submitted an application for a listing on the listing on the a for application submitted an The company 2012. April on Exchange 24 OsloStock A total of 74 units were delivered during the first quarter in in quarter first during the delivered were units 74 of A total the in all projects, andVest Kjørbo Utsiken the Vestparken, Greater region. Oslo # of units delivered by project Events after the balance sheet date Selvaag Bolig the City Lillohøyden to at site the half sale of the to related by the on approval conditional is Oslo.transaction This of second be the completed in and expected is council, to city expectedis The quarter. transaction with be to recognised buyer is since quarter, the the in gain accounting fourth an over take to construction a 9

Segment rest of Norway of rest Greater Oslo Greater Oslo Greater Oslo Greater Norway of rest countries other 2012 Q4

Q3 Category Terraced

Q2 7040 Flats 43 Flats 36 Flats 21 Flats 39 Flats 249

in other words, the sales value of the 1 sales 1 the the value words, of other in # of units Q1

2011 – owned projects. owned

- four residential units (16) were units (16) the in delivered residential four

- 800 600 400 200

Project Fernanda Nissen Vestparken SB Vestfold BryggeLervig BryggeLervig Sädersärlan Total The order backlog quarter, the first sale during on units put 249 Selvaag Bolig 188 (529). of while the construction group started starts Sales during the quarter Seventy- projects wholly in owned 63 including 2012, of quarter first and 11 in part Housing starts Selvaaghad Bolig 1 March, At 31 was high. Project activity units 128 under (847). construction 128 units (847) under construction was million NOK 3 598 under units 128 (847) construction the in 31 The increase at March. million) 853 2 (NOK more that fact the to relation in viewed be must backlog same the at present at than construction under homes are time year.last

A 7

------327 2011 5,642 6,461 13,934 92,112 28,304 90,163 35,500 36,784 31,436 88,091 389,183 141,707 395,207 148,682 264,792 698,979 2,376,300 4,211,025 1,304,198 1,189,628 5,424,738 4,114,079 5,424,738 1,310,659 4,725,759 1,603,102

------533 6,000 3,829 7,007 6,405 80,873 45,037 62,801 21,356 73,950 81,406 2,510,977 369,030 317,807 689,940 407,962 246,486 851,701 317,807 498,224 770,295 671,284 1,169,508 1,169,508

------372 5,811 6,338 7,819 92,112 29,565 85,620 47,385 35,505 80,311 389,183 149,137 145,625 311,836 129,962 354,982 Q1 2012 Q1 2011 712,641 2,495,393 4,494,223 1,310,202 1,317,891 5,744,636 2,625,261 5,744,636 4,428,096 1,316,540 5,031,995 1,802,835

Q1 2012 2012 Q1 12

TOTAL EQUITY AND LIABILITIES Provisions liabilities non interest-bearing Other non-current Non-current interest-bearing liabilities Total non-current liabilities TOTAL ASSETS liabilities Total ASSETS Non-current assets assets tax Deferred Goodwill Other intangible assets Other intangible equipment and plant Property, assets Other non-current Total non-current assets Investments in associated companies and joint ventures joint and companies associated in Investments Loans to associated companies and joint ventures joint and companies associated to Loans Deferred tax liabilities (figuresNOK in 1 000) Current assets (property) Inventories EQUITY AND LIABILITIES ASA Bolig Selvaag to in shareholders attributed Equity equity Total LIABILITIES liabilities Non-current Pension liabilities liabilities Current Current interest-bearing liabilities The summary consolidated financial information has not been audited Trade receivables Trade interests Non-controlling Trade payables Other current non interest-bearing liabilities Other current non interest-bearing Other current receivables equivalents cash and Cash assets current Total Current tax payables liabilities current Total

position financial of Statement

------4 (299) 2011 (0.15) 7,140 (1,016) (1,016) (5,770) (5,706) (4,694) (4,690) 23,265 75,373 19,447 57,937 (5,710) (55,562) (96,665) (76,319) (28,975) (199,002) 309,822 (302,682)

------(9) (97) 990 (176) (572) (36,115) 2,160 4,655 4,411 (5,227) (4,234) (4,225) (4,234) (5,813)

(6,385) (42,249) (11,790) (20,404) (15,534) 41,198 (47,011)

------6 (4,225) (3) (123) (123) 0.09 (196) 6,080 7,431 2,441 5,881 6,007 6,004 (5,174) 13,545 16,350 (18,987) (26,457) (15,389) (16,546) Q1 2012 Q1 2011 (136,032) 191,971 (175,621)

Q1 2012 2012 Q1

statements (IFRS) Net income Financial expenses Other operating expenses Other operating Net financial expenses to: attributable period the for income Net M inority interests Other gains (losses), net Other (losses), gains taxes before Profit/(loss) taxes Income Revenues Other revenues Total operating revenues operating Total Operating profit differences Translation M inority interests (figuresNOK in 1 000, except earnings per share) expenses Project Pay and payroll costs Depreciation and amortisation ventures joint and companies Associated Total operating expenses Financial income income/expenses comprehensive Other period the for income/(loss) comprehensive Total interests) (majority ASA Bolig Selvaag in Shareholders to: attributable period the for income/(loss) comprehensive Total interests) (majority ASA Bolig Selvaag in Shareholders Earnings per net for share income/(loss) attributed to sharholders in Selvaag Bolig ASA NOK in diluted) and (basic share per Earnings The summary consolidated financial information has not been audited

Interim financial income comprehensive of Statement

A 8

- - - - - 299 (151) 2011 1,650 5,770 17,404 53,219 74,435 (28,975) (75,373) (42,624) (90,156) 32,852 13,525 251,370 381,682 101,770 168,959 (147,265) (356,576) (510,572) (444,001) 703,692 395,207 (354,862) 1,402,499

------97 176 435 (990) (151) 7,831 5,637 (6,385) (2,685) (6,460) (2,218) 32,216 62,039 (36,759) (37,121) 62,039 13,525 21,356 (43,297) (10,911)

------(196) (800) 5,174 3,444 (7,431) (5,132) 90,322 71,836 (5,932) (18,721) (91,105) (83,371) 266,625 Q1 2012 Q1 2011 (283,198) (114,189) 247,356 395,207 311,836 (324,795)

Q1 2012 2012 Q1 14

(figuresNOK in 1 000) CASH FLOW FROM OPERATING ACTIVITIES taxes before Profit/(loss) Depreciation and amortisation net Other (losses), gains associated companies and from Share profits/(losses) of ventures joint (property) inventories in Changes receivables trade in Changes Changes in trade payables assets capital working operating other in Changes Changes in other operatingworking activities operating from flow capital cash Net liabilities CASH FLOW FROM INVESTMENT ACTIVITIES assets intangible and PPE of Purchases Proceeds businesses of and subsidiaries, disposal from net cash of disposed Purchases net cash businesses of of and subsidiaries, acquired Purchases of associated companies Purchases of other investments and accounts receivable associated companies and disbursements from Dividends ventures joint and activities investment from flow cash Net ACTIVITIES FLOWCASH FROM FINANCING borrowings Proceeds from borrowings of Repayments account) (group overdrafts bank in change Net Proceeds share issues from activities financing from flow cash Net equivalents cash and cash in change Net Cash and cash equivalents at start of period Cash and cash equivalents at end of period The summary consolidated financial information has not been audited cash flow of Statement

------4 (3) Total 7,477 5,884 (5,710) equity 100,000 986,846 (100,000) 322,042

1,310,659 1,316,540 1,310,659

------(123) Non- 7,477 (1,016) 6,461 6,338 6,461 interests controlling

------4 (3) 6,007 (4,694) 100,000 986,846 (100,000)

322,042 1,304,198 1,310,202 1,304,198 Equity attributed attributed Equity Selvaag Bolig ASA to shareholders in

------6,007 (4,694) earnings (100,000) Retained Retained Q1 2012 2012 Q1 (389,212) (493,906) (487,899) (493,906)

Other 3,528 3,528 3,528 3,528 reserves

------4 - (3) 1,149

1,153 1,153

1,150

13 translation Cumulative differences

Other capital paid-in paid-in 699,132 699,132 699,132 699,132

------Share Share 7,286 17,587 account 933,065

957,938 premium 957,938 957,938

------

159 Share Share 82,413 capital 53,781

136,353 136,353 136,353

Business combination EQUITY1 JANUARY AS OF 2011 Transactions with owners: Group contribution paid (after tax) Group (after contribution paid Net income/(loss) for the period the for income/(loss) Net period the for income/(loss) Net Conversion of liabilities to equity (figures in NOK 1 000) NOK in (figures EQUITY1 JANUARY AS OF 2011 Total comprehensive income/(loss) forthe period: period the for income/(loss) Other comprehensive business connection with in issue Share Total comprehensive income/(loss) forthe period: period the for income/(loss) Other comprehensive The summary consolidated financial information has not been audited EQUITY31 DECEMBER AS OF 2011 EQUITY31 MARS AS OF 2012 in equity changes of Statement

A 9

Total Total - - - - - 1 128 7 431 41 198 198 41 990 847 519 492 492 519 143 480 480 143 710 213 213 710 151 134 74 16 (5 174) (5 404) (20 324) (27 530) (6 (41 846) (41 (6 530) (6 813) (5 (534 216) (534 308) (121 (97) (661 722) (661 (176) I/A I/A I/A I/A Øvrig Other - 990 36 930 13 713 (15 671) (15 151 134 (18 280) (18 072) (26 (176) (27 625) (27 845) (20 350 16 (15 671) (15 (1 759) (1 174) (5 422) (7 (97) (7 422) (7 705) (6 Other Utland countries ------531 (641) (110) (110) (203) Q1 2012 2012 Q1 Norge The restThe Resten av av Resten ------of Norway of Boligutvikling Oslo Property development

Greater 16 Stor-Oslo ------109 608 608 109 324 40 108 36 290 1 805 323 892 847 316 953 202 539 6 439 1 085 (93) 451 921 244 048 109 608 40 324 143 480 74 4 268 892 892 16 (12 395) (12 185) (1 (329 918) (329 539) (202 308) (121 124) (2 252) (1 (419 064) (419 658) (242

the quarter 000) 1 in NOK (figures revenues Operating expences Project expences Other operating EBITDA (percentage of completion) (loss): profit to Operating EBITDA Reconciliation completion) of (percentage EBITDA of percentage of effect (adjustment revenues Sales contract) (completed revenues Sales percentage of effect (adjustment expenses Project contract) (completed expenses Project Depreciation and amortisation associated companies from Share income of (losses) Other gain (loss), net Operating profit (loss) Units in production delivered Units revenues Operating expences Project expences Other operating EBITDA (percentage of completion) (loss): profit to Operating EBITDA Reconciliation completion) of (percentage EBITDA of percentage of effect (adjustment revenues Sales contract) (completed revenues Sales percentage of effect (adjustment expenses Project contract) (completed expenses Project Depreciation and amortisation associated companies from Share income of (losses) Other gain (loss), net Operating profit (loss) Units in production delivered Units For

. . isk

financial 1 1 rom disposals rom disposals

. . the group 201

Q1 2012 2012 Q1 ns parties related with third quarter of 2011. As a result of the Asresult a the of 2011. quarter of third information information

The group utilises the percentage of completion method in in completion method of The group utilises the percentage is completion the of degree which for internalits reporting total to incurred relative on expenses based estimated the under (loss) profit Operating estimated costs. an methodincludes also completion percentage of income group consolidated The element. profit estimated in method, contract completed the on based statementis r of transfer of time the at recognised is revenue which theand thedelivery control,being property. of pointof A to completion of stage (from effect this of reconciliation reporting segment the in found be can completed contract) (loss)". EBITDA operating to profit under "Reconciliation on results based the Group segment considers management EBITDA. determining for method completion of percentage profit operating as defined is measurement of The method gain “Other amortisation”, and “Depreciation before (loss) f (losses) income “Share of (loss),and net”, Financial ventures”. joint and companies associated from operating to allocated not are andincome expenses central a by managed is activity of this type since segments liquidity the group’s focused on managing function finance transactions with Hansa Property Group AS and SPE KS the Group SPE KS the AS and Property with Hansa transactions Estate Real as defined now are segments principal Oslo, Greater regions the to divided according development Previously the countries. Other and Norway of The rest and Services Modules, thereported segments group also together included “Other” in are now These Agent. Estate The comparative expenses. and revenues with unallocated segment new with the accordance in restated are figures to 4 reporting.See note information. segment statements further for See note 23 in the Group's Consolidated Financial Financial Consolidated See the in noteGroup's 23 related on information detailed for 2010 Statements for years previous in partytransactions 4. Segment segments operating of definition the The changed group during the 3.Transactio 15 d 34

. .

dgements made made by dgements

applied in preparing interim these

. . . and the reported amounts of assets and and assets of amounts reported the and information and accounting policies accounting and information preparing this condensed consolidated interim financial financial interim consolidated this condensed preparing assumptions and estimates judgements, Accounting

The preparation of interim financial information requires requires information financial interim of The preparation and estimates judgements, make to management accounting of application the affect that assumptions principles differ results Actual may expenses. income and liabilities, from these estimates In ju significant the information, policies accounting Group’s the applying in management uncertaintyandwere largely the estimation key of sources financial thein consolidated the samethose applied as that December 31 2010 year ended statements the for

2. Group management has not yet evaluated the impact of of impact the evaluated yet has not management Group with a standards amended and revised new, implementing later adoption date of Selected notes the to quarterly financial statements 1.General subsidiaries its and "Company") (the AS Selvaag Bolig group, development property a is Group”) “the (together sale for property residential of construction the in involved condense The business. of course ordinary the in the consists of information interim financial consolidated and companies associated in interest Group the Group’s and entities. controlled jointly information financial consolidated condensed The Group's accordance in with IAS haveprepared been 2011 for all include not does report The Reporting. Financial Interim annual for required disclosures and the information with conjunction in read be should statements and financial statements 2010. for financial the Group’s consolidated The policies accounting condensed consolidated financial statements are consistent consistent are statements financial consolidated condensed with financial the in applied Group’s consolidated those December 31 201 year ended statements the for

A 10 Contact information: Contact Phone: +47 23 13 70 00 / e-mail: [email protected] Schumann, CEO: phone + 47 940 800 00 / e-mail [email protected] Baard phone + 47 400 200 19 / e-mail [email protected] Rønning, CFO: Haavard Bolig in brief Selvaag experience. and history Selvaag of years 60 in rooted developer property residential a is ASA Bolig Selvaag At any given time, the company has several thousand homes under construction throughout the country. Selvaag Bolig focuses particularly on the Greater Oslo area, projects under development in Bergen Stockholm. The company manages and the from the entire process, purchase Stavanger, markets it which but types, property of variety also wide a offers Bolig has Selvaag homes. finished of two sale the to land of by CEO Baard is led The company Pluss. Hjem and Selvaag Selvaag Start, names Selvaag under the brand Schumann, while Olav Hindahl Selvaag chairs the board of directors. The company is headquartered at in Oslo. Løren

2011 94,645 1,749,358 2,367,022 4,211,025

6,931 2,600

359,499

369,030

d at the lower of cost and net thed and lower at net cost of 97,181 Q1 2012 Q1 2011 2,148,225 2,248,817 4,494,223

Q1 2012 2012 Q1 realisable value. realisable resale, and property under development and construction. construction. and development under property and resale, measure are Inventories

perty pro Finished projects Carrying amount as of 31 March Work in progress in Work Land (undeveloped) Land (figures in NOK 1 000) NOK in (figures - 5.Inventory

The Group has property which is land and buildings buildings and land is which property has The Group course business or which of intended sale for the in ordinary such for development or construction of process the in is for held property land, comprise thus sale.Inventories

A 11 Appendix 3: consolidated financial statements selvaag bolig 2011 with comparative figures 2010 (IFRS), and financial statements selvaag bolig asa 2011 (NGAAP) Norway’s leading housebuilder leading Norway’s Bolig builds homes which most Selvaag buy, and has to afford can Norwegians thousand units under development several Oslo, time in and around at any given the Norway. and Bergen, Stavanger in Stockholm, also has projects company Sweden. growth strong experienced the company in turnover in 2011, with a sharp increase as in homes sold and under as well construction. of 648 homes Bolig sold a total Selvaag than 1 000 under in 2011, and had more at 31 December. construction number of housing starts the large Given a sharp expect can in 2011, the company 2012. for in turnover increase Stockholm Kapittel 2 Oslo Bergen Stavanger 1 Kapittel 2011

A 12 - homes is that they are energy-efficient. We are homes is that they are energy-efficient. now making minor adjustments to enhance this aspect even more. During 2012, we will leading be positioning ourselves as Norway’s Our ambition environment-friendly housebuilder. is that all the modularised homes we deliver in the future will meet “passive building” proportion of our other standard, while a large Climate-friendly homes qualify as “low energy”. a greater extent than To homes are the future. before, housebuyers expect their new purchase efficient, and the gov to be green and energy ernment believes that an environment-friendly building industry is essential for overcoming are We environmental and climate challenges. working to meet these requirements as early the present year. are looking forward to continuing our journey. We Baard Schumann CEO rOuND CKG Our good results partly reflect the ability to Another direct advantage of modularised Ba Good year, outlook green exciting Bolig, and a very behind us at Selvaag a good year have We in 2011, with a sharp growth strong experienced time ahead. We and homes sold. Our ambitions for results in turnover, increase climate-friendly to a commitment growth, continued 2012 are listing. market buildings and a stock Populations are growing strongly and housing demand is good in our priority areas and around and we strengthened Oslo, Stavanger and Bergen, Through organic considerably in all these regions. we and acquisitions in 2011, growth, mergers leading house - have become one of the country’s builders, with about 9 000 homes under devel - years is The goal over the next four-five opment. to continue developing the land portfolio in order We to be able deliver 1 500 homes per year. have a good operational platform, solid brand and a financial position which puts us in good position to reach this goal. A deliver homes people want at a sensible price. proportion of our homes are built with the large aid of modules we buy from external suppliers. That gives us several competitive advantages. Modularised buildings have fewer construction defects because they are built under cover in a volume means that In addition, a large factory. can We building costs are substantially reduced. our customers cheaper homes accordingly offer of high quality while simultaneously increasing our margins. 4 4 3 Background outlook green Good year, tradition Continuing a proud Organisation with solid experience Managers chart Organisation Z a to Housebuilder from Housing market housing competition Cathrine won Not over-inflated enough space position Market growth rigging for profitably putting together home your comes Here 8 800 homes land bank for build let others to profitable commitment Green Housing concepts reality became Dream Start: family the whole Hjem: a home for and comfortable Simple pluss: Financial report Directors’ statements financial Consolidated

4 6 8 9 aNNual repOrt SelvaaG BOliG 2011 aNNual repOrt SelvaaG 10 12 14 16 18 20 22 24 26 28 32 34 36 38 44 Contents Front cover illustration: illustration: cover Front lund+Slaatto arkitekter lund+Slaatto

A 13 ruNN Ba KG 6 Sverre Molvik, Halvard Kverne, anne Grethe anne Grethe Kverne, Halvard Molvik, Sverre rønning Schumann, Haavard Baard Storaker, Cedell. and petter SelvaaG BOliG’S exeCutive MaNaGeMeNt: BOliG’S exeCutive MaNaGeMeNt: SelvaaG 5 Kapittel

A 14 CFO* Selvaag** Jørgen Blix Jørgen Meglerhuset Meglerhuset Modulbygg** Selvaag Bolig Selvaag Anders Haavik Anders pluss Service** pluss Trond Stensrud Trond Haavard Rønning Haavard General manager General General manager General General manager General Sverre Molvik Sverre folio management* folio vice president port- president vice Baard Schumann Baard president and CeO* president Board Halvard Kverne Halvard folio management* folio vice president port- president vice 8 ON CHart * Member of the executive management * Member of the executive ** reports directly to the president and CeO the president to ** reports directly Petter Cedell Petter vice president president vice and marketing* Anne G Storaker vice president sales sales president vice property investment* property atiOrGaNiS 7 ON

atiOrGaNiS is responsible for following Anne Grethe Storaker is vice president sales Storaker Anne Grethe and marketing at Selvaag Bolig. She has the principal responsibility for sales and mar- housing projects. keting of all Selvaag Bolig’s Ms Storaker has long and varied experience of housing development, project management, sales and marketing. She joined Selvaag in 2006. Halvard Kverne up many of Selvaag Bolig’s projects. He has up many of Selvaag Bolig’s long and broad experience of developing executing housing projects, both as a contractor and as the construction client. Cedell is responsible for identifying Petter new project opportunities for Selvaag Bolig. He assesses development openings and enters into land purchase contracts. Mr Cedell has gained long and varied experience of acquisition, project development and project execution during many years with Selvaag. has been the president and his ensures competent decisions which lay the basis for decisions which lay the basis for competent his ensures t growth. continued the group’s Managers with Managers solid experience and varied has broad management team Bolig’s Selvaag development. of housebuilding and business knowledge Baard Schumann CEO of Selvaag Bolig since 2008. He was previously chief executive of NCC Bolig, marketing vice president of Peab Bolig and regional manager of DnB Eiendom. Mr Schumann is also chair or director of a number housing development companies. Haavard Rønning is the chief financial officer of Selvaag Bolig and has worked for since 2004. His previous posts there include finance manager and analyst. Before then, he worked on auditing and corporate finance at PwC. Molvik is responsible for following up Sverre projects. He has more many of Selvaag Bolig’s than 10 years of experience in the development and execution of housing projects on behalf the construction client. Mr Molvik worked previ- project manager ously as business controller, AS, and as and chief executive of Skanska Bolig AS. He has regional vice president of Peab Bolig from an MSc in civil engineering and MBA University in Geneva. Webster

A 15 “We work in accordance with Selvaag’s work in accordance with Selvaag’s “We one which prevailed immediately after 1945. one which prevailed immediately after 1945. Homes are in short supply and the pace of con - struction is too slow.” Afford goal was to build cheap homes The founder’s a high standard, which most Norwegians could He was active in the housing debate and afford. not afraid to criticise government policy in the This is the heritage Selvaag Bolig can now area. The company is an inno- continue to build on. reasonably-priced offers vative housebuilder, homes to ordinary people, and is a prime mover more active and solution-oriented for a new, housing policy. values of concern for others and creativity, and do what we can to build a lot of homes at a sensible price,” says chief executive Baard Schumann. “Our ambition is to reduce building costs while delivering better homes in terms of construction technology.” rOuND CKG “It’s one of the reasons why we’re one of one of the reasons why we’re “It’s Ba Continuing a tradition proud by engineer Olav housebuilding ideas developed the revolutionary than and more 60 years after today, as relevant just are Selvaag with backing Bolig meets the future 50 000 homes sold. Selvaag building homes. of and visions for knowledge Selvaag’s from Nobody has been a greater innovator in Nor- housebuilding sector than Olav Selvaag. way’s He was a pioneer of terrace houses, industrial building and a number of other cheap innovative technical solutions. His creative ideas and made an important ability to put them into effect contribution to overcoming the housing shortage and helped to set War, World after the Second many of the standards which apply today. Relevant history is more relevant than ever, Selvaag’s grandson and maintains Olav H Selvaag, Olav’s chair of Selvaag Bolig. he biggest housing developers today,” Norway’s constantly managed to develop in says. “We’ve At step with new technology and market needs. we had more than 1 000 homes 31 December, a very important That’s under construction. housing contribution to overcoming today’s The present position is very like the shortage. 10 9 ON atiOrGaNiS also handles occupied homes, with the focus on clients buying a new residence from Selvaag Bolig. It has dedicated and experienced estate The company agents with various specialisations. experience from builds on the Selvaag group’s developing and selling more than 50 000 homes since the 1940s. Based at Løren in Oslo, it has its own estate agency offices at Løren and Tjuvholmen. Selvaag Pluss Service Service Pluss Selvaag The company is responsible for operating These are lifestyle Pluss homes. Selvaag Bolig’s residences for people of all ages and conditions. Their unique feature is that residents receive something extra in the form of security and common area All the homes have a large service. by service-minded hosts. Residents have staffed access to a number of services, ranging from cleaning to changing tyres and booking tickets. Selvaag Pluss Service develops new and existing services in close consultation with residents. Selvaag Bolig buys and sells new housing land, and is one of the Bolig buys and sells new Selvaag value the whole for responsibility take to developers Norwegian few and selling homes. completing to acquiring sites chain from and largest The company is one of Norway’s most experienced housing developers, with some 9 000 homes in the pipeline and unique first- hand knowledge of the housing market as well as the development and construction process. The various links in the value chain are managed in part through the Selvaag Bolig Modulbygg, Selvaag Pluss Service and Meglerhuset subsidiaries. Bolig Modulbygg Selvaag The company develops flats and terrace houses These are built in the with the aid of modules. Baltic states and Poland, shipped to Nor- Modular wegian building sites for assembly. construction represents a modern and industrial approach to housebuilding, and helps secure The modules meet very high low building costs. standards, and the risk of construction faults is reduced because they are built indoors. Selvaag Meglerhuset This is an estate agency business which sells The company new homes for Selvaag Bolig. Housebuilder Z A to from

A 16 Kapittel 12 11 Kapittel REVOLUTIONARY: Baard Schumann Baard REVOLUTIONARY: of in front and Olav H Selvaag (left) House, which set a new the Ekeberg housebuilding Norwegian for standard in 1948. The house was Olav Selvaag’s build three to that it was possible proof of the price. and at a third times as fast

A 17 rognosesenteret says it says it rognosesenteret “That’s been the picture for 20 years. In been the picture for 20 years. In “That’s He expects price growth in 2012 to be more see an increase of five-seven per cent “We’ll low interest rates and unemployment sharp pay rises. addition come population growth and urba - This means that housebuilding must nisation. expand sharply if the pressure on prices is to be reduced over time.” Demand “The outlook is bright for Norwegian housebuilders because of steadily growing demand the for homes,” Mr Øye says. “Unfortunately, The picture is less positive for first-time buyers. failure to build enough naturally puts pressure on prices, particularly in the urban areas where demand is highest.” moderate than in 2010-11. but prices are now meeting resistance this year, because they’ve grown so much more than pay The pace of housebuilding is ulti - rates over time. mately governed by the ability of buyers to pay.”

rik Øye at construction analyst p analyst at construction rik Øye “If we’d had the pace of housebuilding seen According to Mr Øye, the high temperature HOuSiNG MarKet Bjørn e developments house price describe Norwegian to is inaccurate as a bubble. “Less than 30 000 homes were built in Norway half the number he notes. “That’s during 2011,” we need to meet long-term population growth. actually face a growing housing shortage.” We Different He explains that the Norwegian housing market from those in the is fundamentally different USA, Denmark, Spain or Ireland, which were by excess construction and speculation affected before the bubble burst in 2008. in Spain during 2007, another 120 000 homes The same would have been constructed here. picture applies in the other countries, where common denominator was speculation-driven construction based on expectations of perpetual have the opposite problem, We price growth. with a growing gap between population change and housebuilding.” of the Norwegian housing market reflects with favourable trends in the national economy, 14 Not over-inflated 13 HOuSiNG MarKet “This was first and foremost a memorable way When the rest of flats in project which “Selvaag has always worked to ensure that “Selvaag has always worked to ensure that to highlight the fact that Selvaag has completed 50 000 homes, but all the attention also had a direct impact on our housing sales at Løren.” includes the prize home were put on sale, 90 were quickly received for a total of 88 offers All were Start homes – small units aimed homes. at young people and first-time buyers. Difficult Cathrine feels that the housing market for young people is difficult, and says that her win will give her financial freedom and new opportunities. to own their home, everyone can afford and we’ll be maintaining that tradition,” says “The flat we’ve given away is Ms Storaker. a Selvaag Start home, housing product for young people where we try to keep costs as low as possible.” “It’s quite amazing that I won – an indescribable “It’s Selvaag Bolig announced in September that the 50 000th home built by Selvaag since 1948 would be given away to a person aged between 18 and 34. More than 70 000 people signed up and the company secured more for the draw, After 250 than 43 000 new Facebook friends. finalists had been drawn, the final was celebrated at Løren in Oslo and Cathrine ended up as the winner. Change The new flat owner explains that she had already decided to move Oslo, and says the prize will change her life. feeling,” she says. “This is my first flat, and I can leave home at last. I’ve already started thinking about interior decoration.” Success The anniversary celebration has been a success, vice president Anne Grethe Storaker, observes for sales and marketing. More than 70 000 young Norwegians competed to secure secure to competed Norwegians than 70 000 young More Cathrine Fattnes 50 000th home. Nineteen-year-old Selvaag’s worth flat and a new straw the longest drew Stavanger from NOK 1.7 million. Cathrine housing won competition

A 18 Demand got to stay ahead of the curve,” he empha - “We’ve sises. “Housing developers must be able to build Assuming a when the demand and need are there. stable Norwegian economy and high employment, and that forecasts of strong population growth prove correct, the outlook for developers is very bright.” HOuSiNG MarKet believes a bright future, face area in the Oslo Housing developers urban for mayor vice Conservative the city’s Fredriksen, Folke Bård ensure to enough land available make to He promises development. of homes. supply an adequate Oslo is the fastest-growing national capital According to Statistics Norway, in Europe. its population is set to grow by about 10 000 This means an people per year from 2011-30. average of 5 000 homes must be built annually. Mr Fredriksen says that the city council’s most important job will be to provide planning permission for enough attractive sites. 16 Enough space 15 Kapittel

A 19 BiG-CitY COMMitMeNt: on Bolig is focusing Selvaag and Bergen (pictured), Oslo and their environs. Stavanger Nyebilder.no) (photo: 17 HOuSiNG MarKet “Quantity isn’t the only criterion of success,” “Quantity isn’t ensure that development proceeds in a restrained manner. also a question of building quality he says. “It’s and residential environments where people thrive. not going to wake up and find that we don’t We’re recognise the city we love so much.” Oslo has enough space, Mr Fredriksen main- on the 2013 municipal master plan has “Work tains. But this depends on the construction of Fjord City project, re-zoning of commercial and industrial areas, and more infill for the inner city and public transport hubs. He emphasises the need to invest in better public transport and for better collaboration with other local authorities in the region. planning for 100 000 begun,” he reports. “We’re The plan new homes and 100 000 additional jobs. has a section on land use which identifies where have unimaginable We the homes are to be built. Økern and used properly. amounts of space if it’s Groruddalen will be the next major development They have the capacity for areas after Fjord City. The inner city tens of thousands new homes. will expand up the Groruddalen valley.” Restrained Although Oslo needs many new homes in coming years, Mr Fredriksen is concerned to

A 20 Bolig Modulbygg subsidiary, which serves as a Bolig Modulbygg subsidiary, The modules are built to Nor- centre of expertise. wegian standards by sub-contractors in the Baltic This represents an industrial states and Poland. approach to housebuilding which yields both cheaper and technically better homes, explains Stensrud. Trond general manager MarKet pOSitiON yields homes with both high quality and a Modular construction margins. better Bolig also achieves Selvaag price. sensible The company is the first Norwegian housebuilder scale. to adopt modular construction on a large terrace houses and flats are All its timber-frame built with the aid of modules. approach Industrial Modular homes are developed by the Selvaag 20 Putting together profitably Oslo 19 Bergen Stavanger HOuSiNG MarKet Access to good development sites is crucial for 2011, it also expanded its workforce in such 2011, areas as project development, management and sales. Stronger and Stavanger were precisely where Bergen Selvaag Bolig became considerably stronger Hansa Property Group was merged during 2011. August, giving it control with the company in over a unique bank of housing sites in both west and coast cities. In connection with the merger subsequent share purchases, Selvaag Bolig also housing became the owner of Stavanger-based developer Bo En – renamed Selvaag Bolig Rogaland. the ability to build attractive homes. Favourable land in areas subject to growth pressures does not grow on trees, because the choicest acreage has already been developed. Exceptions nevertheless exist, and Selvaag Bolig owns a solid and attractive land bank in all its priority areas. Existing sites will yield about 9 000 homes. Selvaag Bolig has a good operational platform Both short- and long-term housing demand in Norway will be housing demand in Norway will be Both short- and long-term Bolig accordingly Selvaag areas. in the urban growth highest and the Oslo Bergen, on Stavanger, its concentration increased these cities during 2011. around areas The population of Oslo and the surrounding Akershus county will increase by 350 000 people For up to 2030, according Statistics Norway. Rogaland and Hordaland, the counties containing the rise is put respectively, Stavanger and Bergen alone The city of Bergen at 125 000 and 100 000. will see its population grow by 60 000 people. So demand for new homes will be high in the time to come. Biggest Selvaag has been one of the biggest housing players in the Oslo region for many years, projects under and has a number of large development in such areas as Greater Oslo, The Tønsberg. Lørenskog, Moss, Drammen and company is also working strategically to grow where demand for new and Stavanger, in Bergen homes is high. It concentrating solely on areas where the market is favourable, has good depth and will remain buoyant for a long time to come. and a financial position which makes it well equipped for growth in all these regions. During Rigging growth for

A 21 MarKet pOSitiON in fabricated homes are Bolig’s of Selvaag about a third Norway shipped by sea to and poland, the Baltic states apiece. hours than two in less and installed 22 Here comes comes Here home your 21 MarKet pOSitiON “We’re way ahead of the competition in this way ahead of the competition in this “We’re Appetite The success of this approach so far has whetted appetite. Mr Stensrud says the company’s that the modules provide a solid competitive edge, and that the commitment to them will be intensified. area, but will nevertheless be giving it an even higher priority in the future,” he notes. “The A third of our high volume ensures profitability. That reduced were modularised. homes in 2011 construction costs in this part of the portfolio expect to increase the We by 10-20 per cent. volume of modular construction in 2012, which will cut costs and boost quality even further.” “It’s easy to deliver quality homes at a high easy to deliver quality homes at a high “It’s price, but far harder to do so at a sensible cost,” price, but far harder to do so at a sensible cost,” he points out. “Our modules meet very high standards, and building under cover reduces the risk of faults. Prices are kept down by building the modules abroad and in long series.” Modern The modules are produced by manufacturers most modern fac- with a number of Europe’s tories for such units, shipped to Norway by sea and lifted into place on pre-installed foundations. Skilled tradesmen from the factories assemble the modules into complete homes, such as a three-story terrace house with roof veranda, or These construction a flat in galleried block. teams can assembly a terrace house comprising three modules in 1.5 hours, after which the building is completed internally and connected to power and piping.

A 22 Kapittel 24 valuaBle SiteS: Selvaag Bolig SiteS: Selvaag valuaBle a number of good devel- owns in Bergen. opment properies Media) Maestro (photo: 23 MarKet pOSitiON after being freighted to Norway, the completed struc- Norway, the completed to being freighted after by road transport for semi-trailers onto loaded are tures site. the construction to Only the work. complete time to little it then takes connecting such as be finished indoors, to have details were and piping. these homes in Moss electricity in occupation for and ready in mid-October assembled Christmas. good time before these modules are made to Norwegian standards at the standards Norwegian made to are these modules coun- european in the east sub-contractors company’s high quality and reduces ensure production tries. Factory and damp problems. errors the risk of construction the work is carefully coordinated. the foundations on the foundations coordinated. is carefully the work into lifted and the modules in advance, prepared are site mod- three house comprising a terrace by crane. place in 1.5 hours. is positioned and assembled ules

A 23 “We fetch in the expertise we need,” says “We No building companies are the same, and often use builders who know us well, largely “We Mr Molvik. “That means we don’t have 400 Mr Molvik. “That means we don’t hungry builders to feed in quiet times, and avoid capacity problems when building several projects simultaneously.” areas. have leading-edge expertise in different Mr Molvik explains that Selvaag Bolig benefits from the best in many companies. but we’re always concerned to collaborate with those who’re able to overcome our challenges in AF Gruppen, for instance, the best possible way. has much greater environmental expertise than its competitors. Other contractors are experts at tall buildings. No two housing projects are valuable for us to be exactly the same, so it’s able to secure precisely the expertise we need for each one.” “Many housing developers have their own MarKet pOSitiON to Profitable build others let which can housebuilders Norwegian Bolig is one of the few Selvaag con- construction different from offers pick and choose between benefits. that confers tractors. The company does not have its own building personnel in-house, but purchases such services According to portfolio vice freely in the market. presidents Halvard Kverne and Sverre Molvik, who are responsible for supervising Selvaag projects, benefits of this approach include Bolig’s more favourable prices and a better bottom line. construction arm, which they’re forced to use,” observes Mr Kverne. “When we’re going to The biggest build, we obtain a number of bids. advantages are that we always get the right market price, and that we achieve profitability at every stage. More favourable prices from contractors mean cheaper homes and better margins.” exposed Less Another advantage is that the company becomes less exposed to market fluctuations. 26 peab peab include: Skanska veidekke veidekke realbygg aF Gruppen Selvaagbygg Kruse Smith Betonmast Bygg Betonmast OKK entreprenør OKK entreprenør for Selvaag Bolig Selvaag for Wegger & Kvalsvik & Kvalsvik Wegger Contractors who build Contractors 25 MarKet pOSitiON “Much of the land was acquired a number Through mergers and acquisitions in 2011, and acquisitions in 2011, Through mergers hat ensures more predictable predictable more hat ensures itself rather than buying sites with planning permission. years ago, and its price has risen substantially. Using our own expertise in the development secure gains from We process also adds value. both development and execution phases.” Prime sites Selvaag Bolig is developing a number of the prime sites in its land portfolio. Selvaag acquired a former military barracks at Løren in Oslo in 1999, and construction of more than 1 800 The homes there will continue until 2016. company is also pursuing a major development properties at Lørenskog, where it acquired large The projects embrace more than 2 500 in 2000. homes, with building due to continue until 2024. Selvaag Bolig also secured a number of good One of the biggest sites in Stavanger and Bergen. of its projects in western Norway is Lervig where construction of the Brygge in Stavanger, first of 850 homes began in 2011. “We’ve built up this holding over a long time “We’ve Securing planning permission for housing sites Selvaag Bolig is among the Norwegian housebuilders with the with the housebuilders Bolig is among the Norwegian Selvaag t available. number of sites largest and a higher volume. projects The company has a total of 8 800 homes under development on attractive sites in and around Unlike many other Oslo and Bergen. Stavanger, it owns the properties housebuilders in Norway, itself. Advantages notes Petter Good sites are in short supply, Cedell, vice president for property investment. solid land bank gives it Selvaag Bolig’s important advantages both immediately and in the long term. and through acquisitions, the properties have a good geographical spread in our focus areas,” says Mr Cedell. “That gives us greater predictability in our projects, and ensures that we have enough land for the high volume we’re going to deliver in the years to come. Our strategy is a lot, so we’re That’s deliver 1 500 homes a year. wholly dependent on owning good sites.” in Norway can be a long and demanding bureau- cratic process. Mr Cedell explains that Selvaag Bolig benefits greatly from developing the land Land bank for Land bank for 8 800 homes

A 24 MarKeDSpOSiSjON 28 Free CHOiCe: construct Bolig is to Selvaag flats at Nyhavn in 119 pluss obtains the company Bergen. contractors. various bids from Dyrvik arkitekter) (illustration: 27

A 25 Kapittel 30 29 MarKet pOSitiON “Most housebuilders have some form of “Most housebuilders have some form of The environment-friendly buildings will not Values position Ms Storaker believes that the company’s on the environment accords well with Selvaag’s history and values base, where concern for others and creativity are the cornerstones. green commitment, but none have taken a clear leading position,” she observes. “Instead of communicating plans and intentions, we’ll be launching specific measures in good Selvaag style for almost all our new buildings during 2012.” be a special housing type, but an improvement existing Start, Hjem and Pluss of the company’s concepts. Designated Selvaag Bolig Green, homes meeting the new standard will have “Green” attached to their existing label – such as Hjem Green. “Standards for lower energy consumption consumption “Standards for lower energy Green Green commitment who builds the housing developer the position as Norwegian Bolig by Selvaag homes will be taken environment-friendly most during 2012. Building use accounts for about 40 per cent of consumption. Selvaag overall energy Norway’s Bolig is now committed to achieving the “passive building” standard for all its modular status for a large housing, and “low energy” proportion of its other homes. Simple The time is favourable for mounting an environ- vice Anne Grethe Storaker, mental drive, says president for sales and marketing, explains modular buildings can be that the company’s made even greener through relatively simple measures. in Norwegian homes are set to tighten even she notes. “Many of the qualities further,” which environment-friendly housing must have are already incorporated in our buildings or wise believe it’s We must be built in regardless. to do this now in order achieve the greatest possible impact in the market. People are con - cerned about this today.”

A 26 She has seen quite a few sunsets over Oslo She has seen quite a few sunsets over Oslo “There aren’t many single nurses under the many single nurses under the “There aren’t afternoon. During the summer months, I sit afternoon. During the summer months, I sit outside almost all the time.” from her favourite chair on the veranda – which has become even finer after kindly neighbours helped to extend it. Friends “I’ve made many new friends since moving relates. “The doors are open Yvonne here,” throughout the building.” Her neighbours organ- socialise a lot, eating dinner together, evenings or going for country walks. TV ising She also values the proximity to woods and beach. to buy their own flat,” age of 30 who can afford she observes. “I feel quite simply privileged.” • 30-65 square metres • 30-65 square • Good layout priced • reasonably “I was overjoyed when my number was “I was overjoyed when my number and gets the sun all “The veranda is large HOuSiNG CONCeptS Dream reality became really still is aune Bjerke Yvonne 29-year-old years, five after in many different She lived satisfied with her flat at Mortensrud. fulfilled. home was finally of her own the dream before places she I won the lottery,” “I was incredibly lucky. explains. She was one of 450 hopeful first-time buyers who queued up when Selvaag put 52 The young nurse thought she had flats on sale. no chance when she saw how many others were interested. a drawn. I was able to buy the flat liked best at I The way prices are today, price I could afford. have a chance to get onto the housing wouldn’t ladder in the normal way.” Modern flat is 29 square metres with its own Yvonne’s bathroom and bedroom, has a light modern style. Despite being happy with the lay- the outdoor space is feature she out, however, likes best. Start buyers first-time • For flats and three-room • two- • light and modern homes 32 31 Kapittel

A 27 outdoor areas shops and public transport facilities, “We really like it here,” says André. He was really like it here,” says “We particularly full of people in the summer,” Aina particularly full of people in the summer,” André think having their reports. Both she and own sculpture park in the midst of a residential were visited by some district is great fun. “We German friends who’re very familiar with Nor- wegian culture, and they were most impressed,” says André. Events big building known as Kanonhallen (Canon A Hall) stands in the heart of area, and is used for a variety of events such as Christmas theatre. market, concerts and children’s not familiar with Selvaag before buying, but understood he had shot the goose with golden egg when he told his grandparents in their 80s about the purchase. “They cried out at once: ‘Oh yes, then you’ve made a good buy there’.” • Good living environments and pleasant and pleasant • Good living environments and schools, sports nurseries to • Close child-friendly areas child-friendly “It was also great to avoid having redec- in use all year round, but it’s “The park’s HOuSiNG CONCeptS they a family, start decided to and aina Kristianslund When andré great enjoy can their son Marcus the home in løren. for at once fell of all the in walking distance are outside, and they just playgrounds need. shops they fell in love with the area at first sight,” says “We Aina. She had never been to Løren before, but André on the basis had only heard about it from of a visit he had paid to friend. Both husband and wife liked an area which is calm peaceful despite being very central in Oslo. orate, and just to be able move straight into a André. fine and brand-new flat,” adds Playgrounds neighbours also have Many of the couple’s children, and Marcus often meets other young- sters in one of the many playgrounds located The most popular meeting between the buildings. place for both adults and children is the sculpture park, a collection of artworks which follows Peer Gynt play act by act. Ibsen’s Hjem life who want a home for people • For and houses and flats in peaceful • terrace 34 A home for the A home for family whole

: a Start home : a Start rtuN ate s its name s its name suggests, a Start a Start suggests, you home gives a good jumping- off point in the housing market. allowed at Mortensrud to aune Bjerke Yvonne get on the housing ladder. Katrine lunke) (photo: a Start home is a two- or A three-room flat, ranging in size from 30-65 square An efficient layout metres. ensure that each square metre is used in the optimum way. The flats are constructed to the latest building and environmental standards. They are often found on the edge of cities, but close to public col- A transport and shops. laboration with DnB offers financing for buyers between 18-34 years of age. FO 33 Kapittel

A 28 Everybody is keen on the waffles served every Both also find having a hostess they know to “She loves to visit,” says Marit with a laugh. • service Host/hostess • Social activities • and security patrols alarm system home is close at hand.” In addition to such fixed events, themed Friday. evenings are staged – everything from wine- tasting courses to bridge. Secure “I’ve slept so well at night since moving here,” feel secure, and no longer get says Finn. “We security A up to check out night-time noise.” patrol passes twice a night, and the couple have number they can call if anything happens. helps with everything Wenche be reassuring. grand- they might need. Even their 20-year-old daughter envies the good life they lead. so luxurious to be here.” “She says it’s meeting room and catering facilities facilities and catering meeting room “I’m really comfortable here,” says Finn a great way to get know people and it’s “It’s HOuSiNG CONCeptS a pluss house to a detached from moved Finn and Marit andersen now are couple the married flat at union Brygge in Drammen. leaving. contemplate never and could life, enjoying Andersens were among the first to move into The After many years of tending this development. they wanted a a garden and shovelling snow, simpler life. He is happy to have only one enthusiastically. place to look after – the holiday cabin. In their Pluss flat, he and Marit can just take it easy in a way. completely different Frequent Neither of them were familiar with the Pluss concept before buying the flat, but they have become frequent users of the many services has brought Wenche, The hostess, available. them their post and taken laundry to the cleaners. they attend the soup dinner. Tuesday, Every can pop in, and then informal,” says Marit. “You Pluss • life a simple for High standard • reception with staffed Common area • gym, function room, lobby, Shared 36 Simple and Simple comfortable Selvaag Hjem is the Selvaag if you choice secure want a home for this category life. includes both flats houses. and terrace Both you and your family will find that Selvaag Hjem provides a good framework for a comfortable lifestyle. Con - structed to well-proven and sound designs, these buildings Hjem A solid quality. offer home characteristically stands in a peaceful and child-friendly neighbourhoods, often close to open country or parks and to schools, sports facilities, shops can You and public transport. find Selvaag Hjem homes in andand around Oslo, Bergen Stavanger. aina andré, FlOuriSHiNG: Kristianslund and Marcus in the themselves enjoy park. sculpture Katrine lunke) (photo: 35 Kapittel

A 29 - Selvaag Bolig has no in-house con- Furthermore, Selvaag Bolig pos - present portfolio embraces a total area of 109 000 square metres for development as commercial premises. struction operations, but leases such capacity on a project-by-project basis. That gives Selvaag Bolig great flex ibility in selecting the best option for each project. It requires less organisation, which improves cost-efficiency, while increasing flexibility in relation to market fluctuations. Using external contractors rather than building for the own account also ties up less group’s capital during the construction phase. sesses solid expertise through its Selvaag Bolig Modulbygg subsidiary in the development of blocks flats and terrace houses with the aid of modules. The group’s main focus and primary The group’s AS, which produces modular buildings, AS, which and Selvaag Pluss Service services related to Selvaag Bolig’s offers housing The group’s Pluss concept. development business embraces both wholly and partly owned projects, some of which take the form joint ventures with external investors. source of revenue in the future will relate to the housing development business. Its portfolio of land zoned for development at 31 December totalled more than 8 800 housing units, with roughly 6 100 in the Greater Oslo area and the remaining 2 700 spread around Selvaag Bolig other regions of Norway. also has land zoned for development as commercial premises, primarily in The relation to major housing projects. Maria terese Hosen, Olav Hindahl Selvaag, Baard Schumann og anne Breive. Baard Hosen, Olav Hindahl Selvaag, Maria terese DireCtOrS’ repOrt DireCtOrS’ report Directors’ Bomann jonsen, Karsten jarl rettedal, Mathiesen, Ole Kjølås, anne-Kari Drønen BOliG: Wenche OF SelvaaG OF DireCtOrS tHe BOarD business The group’s and location Selvaag Bolig is one of Norway’s leading housing developers. It buys and develops new housing land, is responsible via support functions and construction contracts for the whole value chain from the acquisition of land to completion and sale of the homes. The group operates nationwide, but con- centrates particularly on Greater Oslo, It also has pro- and Stavanger. Bergen jects under development in Stockholm Bostad Veidekke in collaboration with AB. Support functions include Megler- huset Selvaag, which pursues regular estate agency and letting activities in addition to selling homes developed by the group, Selvaag Bolig Modulbygg 38 Selvaag pluss is the pluss Selvaag want a option if you and high standard life. an easier daily lifestyle these are for residences in all age people and stages groups of life. This category brings something of the experience you get in hotels into your home through extra service, experi- Pluss A ences and security. dwelling normally provides access to a service area with reception, lobby, a staffed guest room, gym, meeting room, hospitality suite and catering facilities – all styl- ishly decorated and fully equipped. Residents have access to a private garden, and most have a furnished roof terrace for common host or hostess is A use. present in reception every day to maintain order in the service area, organises and all the services offered provide practical assistance. ambition is Selvaag Bolig’s to establish Selvaag Pluss in Stavanger and Oslo, Bergen, Stockholm. HOMe WitH a HOSt: formed Finn and Marit have with relationship a close (centre), Wenche hostess the skies. her to and praise Katrine lunke) (photo: 37 Kapittel

A 30 The group has an overdraft facility Each project in Selvaag Bolig is Net cash flow from investing activities Net cash flow from financing ASA. In addition, the group has established a new land credit of NOK 550 million sites. It will beallocated to eight different converted to construction loans as each project progresses. of NOK 150 million, which 80.9 million had been drawn down at 31 In addition comes an December 2011. overdraft facility of NOK 150 million to finance the start-up of new projects. This facility remained undrawn at 31 December. as a separate company (single organised purpose vehicle – SPV). In addition to this financing from the parent company, implies that each company seeks its own external capital financing for the development of a project. Land credits will be converted to construction loans as the projects start up. Building costs are wholly financed by loans, and increased activity in the companies will accord - ingly mean that construction loans rise in line with progress. In addition, Selvaag Bolig has an unsecured loan of NOK 165 million from Selvaag Gruppen. Cash flow Consolidated net cash flow from opera - tional activities was negative at NOK 354.9 (positive at NOK 28.6 million in 2011 The change in net cash flow pri - million). marily reflects changes in working capital resulting from a substantial increase in con - This reduced operational struction activity. cash flow by NOK 256.6 million. was NOK 32.8 million (negative at NOK 21.9 million). Cash in acquired businesses came to NOK 281.3 million, by payments to acquire busi - partly offset nesses, loans taken over and the addition of associates. Settlement for the project company amounted to NOK 17.4 million. activities was NOK 703.7 million (NOK 2.5 million). Cash and cash equivalents increased by NOK 381.7 million to NOK 395.2 million (NOK 13.5 million). - Equity at 31 December was NOK Equity at 31 December was NOK The group held cash and consolidated non- At 31 December, Operating profit Operating The group made an operating profit of NOK 7.1 million (NOK 20.7 million). Financial items Net financial expenses came to NOK 36.1 million (NOK 23.3 million). Results The loss before tax expense was NOK 29 million (NOK 2.5 million). Net tax income was NOK 23.3 million (expense of 13.8 million), yielding a net loss of NOK 5.7 million (NOK 16.3 million) for the group. sheet Balance The carried amount of the Selvaag Bolig inventories (land, housing under group’s construction and completed homes) at million, 31 December was NOK 4 211 compared with NOK 365.8 million a year This increase reflects the merger earlier. with Hansa Property Group, the acquisition of the remaining shares in Selvaag Pluss Eiendom and Bo En, the high level of activity in a number of projects. 1 310.6 million (NOK 322 million), corresponding to an equity ratio of 24.2 per cent (30 per cent). equivalents of NOK 395.2 million at 31 December (NOK 13.5 million). current interest-bearing debt amounted to NOK 2 376.3 (NOK 0) and consolidated current interest-bearing debt was NOK 1 189.6 million (NOK 627.9 These changes reflect the million). above-mentioned transactions as well the fact that high level of building activity is financed mainly by con struction loans. Financing The company has an unsecured credit facility of NOK 500 million with DnB. and bridge, equity an as defined is loan This is due to be redeemed wholly or partly in connection with a listing of Selvaag Bolig Selvaag Bolig enhanced its image as The item for gain (loss), net associates DireCtOrS’ repOrt DireCtOrS’ 40 homes delivered from wholly owned accounted for NOK projects during 2011 136.1 million of the revenue (NOK 0). share of deliveries from The group’s part-owned projects came to 25 homes. Income from part-owned projects is not shown as operating revenue but rec - ognised net as profit from associates. Selvaag Bolig delivered no homes in 2010. Other revenue related to activities outside the core business, primarily estate agency services. costs Project Project costs came to NOK 199 million (NOK 219 million), and consist primarily of construction costs for homes delivered in the period as well project costs which do not qualify for recognition as inven - The reduction in project costs musttories. be viewed in relation to the three external module deliveries mentioned above. costs Operating Operating costs amounted to NOK 178.8 million (NOK 94.9 million) for the period, with payroll costs accounting for NOK 76.3 million (NOK 51.2 million). housebuilder during largest Norway’s in line with the start to sales 2011 The group also for several projects. pre- strengthened its organisation, pared for a stock exchange listing and with Hansa Property Group. merged This increased the other operating costs item to NOK 96.7 million (NOK 43.2 That is a higher level of costs million). than the group will experience in normal operation. and joint ventures includes gains of NOK These derive from 78.7 million for 2011. staged acquisitions related to the merger with Hansa Property Group, as well from the acquisitions of Selvaag Pluss These represent Eiendom and Bo En. only accounting gains, without cash on interests owned before the effect above-mentioned transactions. 39 1 DireCtOrS’ repOrt DireCtOrS’ Start homes are typically two- and Selvaag Hjem is the option for Selvaag Pluss is the high-standard Selvaag Hjem (Home) and Pluss All three concepts are usually concepts. development projects, included in large which provides greater market breadth and helps to expand the housebuyer base for each project. three-room flats, and are often located on the outskirts of cities close to public transport and retail outlets. to buyers aged Financing is offered between 18 and 34 years, the homes are particularly suitable for first-time buyers. someone seeking a lifetime home. Buildings in this range include both flats They are charac- and terrace houses. terised by locations in peaceful and child-friendly neighbourhoods, often close to open country or parks and near services relevant for this category of Selvaag Hjem homes prospective buyer. in and around Oslo other are offered Norwegian cities. large These are lifestyle residences option. for people in all age groups and stages extra This concept offers of life. services more usually associated with hotels. It normally provides access to reception, a service area with staffed guest room, gym, meeting lobby, hospitality suite and catering facilities. in central Selvaag Pluss is offered Norwegian cities and areas of large Stockholm in Sweden. Financial review statement Income revenue Operating Consolidated operating revenue for totalled NOK 309.8 million (NOK 2011 The decline from the year 379.1 million). before reflected three external projects involving module deliveries which were completed in 2010. Fifty-three largely Sole owner of Selvaag Pluss Eiendom Sole owner between As a condition of the merger Selvaag Bolig and Hansa Property Group, a private placement was made with the owners of Selvaag Pluss This resulted in Selvaag Eiendom KS. becoming the sole owner of ASA Bolig Selvaag Pluss Eiendom. of Bo En Sole owner with Hansa Through the merger Property Group, the company acquired AS 62.5 per cent of the shares in Bo En (which changed its name to Selvaag AS). Selvaag Bolig Bolig Rogaland thereafter reached agreement with ASA the other shareholders in Bo En on acquisition of the remaining 37.5 per cent of the shares in latter company. Bo En became a wholly owned subsidiary after the approval of extraordinary general meeting of 21 November This acquisition will first affect 2011. operating revenue in 2012. Strategic review Strategic Strategy strategy is to develop Selvaag Bolig’s various housing concepts and offer tailored to housebuyer requirements Norwegian cities in and around large and selected regions in other parts of attention is The group’s Scandinavia. concentrated primarily on areas in and and growing around cities with a large population. Projects in other selected Scandinavian cities are evaluated continuously on the basis of their attractiveness in terms of risk and return. strategy Market Selvaag Bolig con - Geographically, centrates its attention particularly on and Stavanger, Greater Oslo, Bergen but the company also has projects under a development in Stockholm. It offers broad range of housing types, which are marketed as the Selvaag Start, Selvaag Bolig’s head office is in Oslo, Selvaag Bolig’s Selvaag Bolig carried out a number of Hansa Property had been run by date, Hansa Property At the merger Figures in brackets relate to the year before. the year to relate in brackets Figures A modern and industrial approach to modern and industrial approach to A housebuilding allows Selvaag Bolig Modulbygg to help keep construction The actual modules are costs low. manufactured by sub-contractors using good, traditional craftsmanship. Quality is high, and indoor production helps to reduce the risk of fabrication errors. and the business address of group is Lørenvangen 22, NO-0512 Oslo, Norway. of 2011 Overview Highlights The level of activity in the group is high, a number of construction projects have been launched and sales of homes have increased. More than 1 000 homes were under construction by the group Demand for housing is at 31 December. priority areas in and high in the group’s and around Oslo, Stavanger and Bergen, Selvaag Bolig greatly strengthened its position in all these areas during 2011. its major transactions and reorganised so that company structure during 2011, the group now ranks as one of coun- housebuilders, with some largest try’s 9 000 homes under construction. in 2011 transactions Important Group with Hansa Property Merger The general meetings of Selvaag Bolig AS and Hansa Property Group ASA the two resolved on 10 June to merge companies. Selvaag Bolig since January 2010 under a contract which made Selvaag Bolig responsible for managing the company and its day-to-day activities. had a land portfolio totalling 400 000 square metres. Some 80 per cent of this was housing projects. 1

A 31 On 4 May 2011, the group entered On 4 May 2011, to It was resolved on 24 May 2011 The general meetings of Selvaag The group sold the Ekely property net negative balance of NOK 170 A Shareholder information Shareholder The company had 96 shareholders of whom four at 31 December 2011, were foreign. See note 7 to the parent company financial statements for for detailed share- ASA Selvaag Bolig holder information. with close Transactions associates The group purchased some construction AS Selvaagbygg from services in 2011 (which was a subsidiary of Selvaag Gruppen in that year) for certain pro- These contracts are considered to jects. be entered into on market terms. into an agreement to transfer all equity interests in the wholly owned Sel- AB subsidiary to Selvaag vaaghus AS, a subsidiary of Selvaag Eiendom Gruppen, for NOK 7.4 million. expand the share capital of Selvaag This by NOK 100 million. ASA Bolig increase was implemented by converting debt to Selvaag Gruppen, and was registered in the Norwegian Register of Business Enterprises on 18 June 2011. and Hansa Property Group ASA Bolig to merge resolved on 10 June 2011 As a condition of the two companies. the company conducted a this merger, private placement with the owners of Selvaag Pluss Eiendom. Both transac- August tions were implemented on 24 and further details are provided in 2011, note 6 on business combinations in the consolidated financial statements. to at Skøyen in Oslo during June 2011 AS for NOK 5 million. Sealbay Sealbay is controlled by two directors of Selvaag Bolig, Olav Hindahl Selvaag and Gunnar Frederik Selvaag (who stepped down from the board in September 2011). The group wants to be a driving force Selvaag Bolig will be a responsible Corporate social responsibility social responsibility Corporate (CSR) Selvaag Bolig is concerned with CSR and opportunities for combining value creation with social benefit. Creativity and innovation are fundamental to the corporate culture, and it strives to group’s come up with favourable solutions at all times. Selvaag Bolig wants to build good which creates homes in a positive way, the highest possible “residential value” for housebuyers. Homes and housing estates will be built to create a quality of life for buyers and to meet their requirements in the In this way, the best possible manner. group contributes to developing enhanced living environments and better cities. in the social debate order to promote the housing issue and to speak on behalf of its customers by communicating views and being prepared to stand up for them. Selvaag Bolig wants to create good solutions, and fights for these. It has the follow up courage to think innovatively, ideas and convert them into action. social player and minimise pollution of and damage to the natural environment. It will ensure that resources are utilised and contribute in the best possible way, actively to reducing emissions and The group always seeks to discharges. find solutions which minimise intrusion in the natural environment and use of resources. Impact on the natural environment Selvaag Bolig pays special attention to environmental considerations when pursuing its construction activities, and has taken account of the natural environment in its planning and control systems. Its environmental impact relates primarily to energy consumption, materials, waste and interventions in and use of natural resources. DireCtOrS’ repOrt DireCtOrS’ 42 Insuring against risk Insuring against Selvaag Bolig seeks to reduce the impact of undesirable incidents through its risk management system, but risks could nevertheless arise which cannot be fully Thecontained by preventive measures. group reduces such risk to some extent by purchasing insurance. Selvaag Bolig’s insurance programme covers such areas as operational shutdowns, damage to liabilities and equipment and real property, other risks. It also covers various kinds of risk to people. Organisation was established in ASA Selvaag Bolig 2008 as an independent housing development unit in the Selvaag Gruppen group. It is the parent company for underlying group subsidiaries, which At 31 are responsible for operations. the Selvaag Bolig December 2011, group had a total of 87 employees, including 42 in the parent company and 45 in the subsidiaries. environment Working The working environment in the group is regarded as good. Ensuring that to reduce sickness absence and efforts prevent injuries have a high priority in the company is given emphasis by the board. Sickness absence was 2.2 per cent (2.85 cent) for the group and 2.9 per cent (0.51 cent) for the No injuries were sus- parent company. tained in 2011. Equal opportunities The general policy of the group is that no unequal treatment or other form of discrimination related to gender The or ethnic background will occur. group gives emphasis to expertise rather than gender or ethnic back - ground when making appointments. account for 39 per cent of the Women workforce. group’s 41 DireCtOrS’ repOrt DireCtOrS’ borrowing costs and could affect the valu - borrowing costs and could affect ation of its assets. risk Credit Credit risk is the of loss associated with business The group’s the granting of credit. is aimed almost entirely at private buyers, who have secured and documented the financing of their housing purchase before contracts are entered into. Some forms of as part of thefinancing solutions are offered All credit is given Selvaag Start concept. against a priority mortgage in the relevant and security is accordingly property, regarded as good. Financial and liquidity risk Cautious liquidity management means having sufficient liquid assets and available financing through lines of credit to meet the The group refinanced obligations. group’s as a con - parts of its loans during 2011 large andsequence of the major reorganisations, manages its liquidity risk by maintaining adequate cash in hand, bank arrangements and credit limits, primarily in the form of group overdraft facilities, and by con - tinuous monitoring of forecasts and actual The board takes the view thatcash flows. the group had a well-balanced exposure to financial and liquidity risk at 31 December. Cash and cash equivalents in Selvaag Bolig amounted to NOK 395.2 million at 31 December (NOK 13.5 million). Liquid assets consisted primarily of cash and bank deposits. Further reference is made to the comments on financing above and to note 16 to the consolidated financial statements for an overview of loans, maturities and loan terms. Planning risk Changes to zoning plans at various levels by the relevant public authorities could various projects, Selvaag Bolig’s affect including the interest of future buyers in the properties. Such changes could also limit opportunities to continue devel - oping the properties, and could lead to increased costs. - The group is also exposed to increases Operational risk Operational Selvaag Bolig draws on external con - struction companies and service providers As a to develop and build new projects. result, it is exposed to the risk of loss and additional project cost if a contractor/sup - plier finds itself in financial difficulties. in the level of prices for construction and to cost overruns. However, contracts are made to reduce the latter efforts risk by entering mainly into turnkey and well-established contracts with large players. In addition, the opportunity to use modular construction concepts provides a good alternative to turnkey contracts in order to meet possible fluc tuations in construction costs. risk Market Housing demand is influenced by a large number of factors at both micro and macro by substantiallevel. It may be affected fluctuations in the general level of interest rates and or significant changes in other financial variables to which potential housebuyers might be exposed. Changes in housing demand could furthermore affect opportunities to sell homes Selvaag Bolig’s at budgeted prices within the planned time frames. risk exchange Foreign activities are all the group’s Virtually the group However, based in Norway. Whenbuys modules from abroad in euros. purchase contracts are signed with foreign module suppliers, the exchange rate is locked in by ordering foreign currency at a fixed rate for future settlement based on As a result, payment plan. the supplier’s the group has limited exposure to foreign exchange risk. financing, risk (own rate Interest deposits) Changes in the general level of interest rates are very important for housing demand, and accordingly for sales by Selvaag Bolig. Furthermore, big changes in interest rates are significant for the group’s The board proposes that no dividend Events after the balance sheet date the balance after Events signed a letter of intent ASA Selvaag Bolig in February related to the sale of indus - toTønsberg trial sections at Kaldnes in further A two Nordic property companies. letter of intent was signed for the sale Næring Vestparken industrial sections in These sales are due to be completed inAS. the first half of 2012. Going concern Pursuant to section 3-3a of the Norwegian Act, the board confirms that Accounting going concern assumption is realistic and have that the financial statements for 2011 Thisbeen prepared on that assumption. long-term strategy view rests on the group’s financial The group’s and forecasts. position is good. of the net loss Coverage ASA, Selvaag Bolig The parent company, made a net loss of NOK 43.2 million (profit The parent com - of NOK 29.5 million). equity amounted to NOK 1 317.1 pany’s of which NOK million at 31 December, 145.9 million was non-restricted. be paid for 2011. Risk and risk management Risk management the group is As a housing developer, Theseexposed to a number of risk factors. can include the public planning process, development work, environmental consid - erations and official prescriptions which opportunities and the timecould affect The group isrequired to execute a project. also exposed to developments in con - struction costs and financing, to general All these risk trends in the housing market. factors could have a negative impact on operations, financial position, the group’s profits and opportunities to execute projects. Some of the most important risk factors facing the group are briefly described below.

A 32 - - (25) (74) 2010 (491) 21 662 13 327 20 726 (2 530) 357 468 379 130 (51 202) (43 249) (44 310) (36 583) (16 323) (16 397) (13 793) (23 256) (16 323) (16 397) (219 127) (163 230) (358 404) 4 2011 (299) 7 140 (0.15) 75 373 57 937 19 447 23 265 (5 770) (1 016) (4 694) (1 016) (4 690) (5 710) (5 706) 251 885 309 822 (76 319) (96 665) (55 562) (28 975) (36 115) (199 002) (302 682)

2 5 5 7 8 9 9 11 24 19 Note 10, 11 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Operating profit (loss) profit Operating Total operating expenses operating Total Profit (loss) before income taxes income before (loss) Profit Net financial expenses Net financial Total revenues Total for the period (loss) Profit the period for income comprehensive Total Sales revenues Sales Salaries and personnel expenses Salaries and personnel Depreciation and amortisation Depreciation net Other gain (loss), Other operating expenses Other operating Financial income Share of income (losses) and gains (losses) on disposal from associated companies and joint ventures companies associated on disposal from and gains (losses) (losses) of income Share Income tax (expense) income (expense) tax Income Other revenues Total comprehensive income for the period attributable to: the period attributable for income comprehensive Total interests Non-controlling Bolig ASA of the Selvaag to shareholders attributable (loss) profit for Earnings per share in NOK) (basic and diluted, Earnings per share Financial expenses income Other comprehensive translation currency Foreign to: for the period attributable (loss) Profit interests Non-controlling Bolig ASA of Selvaag Shareholders Bolig ASA of Selvaag Shareholders (amounts in NOK 1 000, except earnings per share) (amounts in NOK 1 000, except expenses Project CONSOliD Income of Comprehensive Statement the financial period ended 31 December for 44 43 Director Anne Breive DireCtOrS’ repOrt DireCtOrS’ President and CEO

Selvaag Bolig is concentrating pre - housing. cisely on the areas of housing pressure in and around Oslo, Stavanger and has a good platform for Bergen, The company meeting future demand. strengthened its position markedly during and Stavanger. in both Bergen 2011 with Hansa Property Group Merging gave it control over unique development housing sites and the Stavanger-based developer Bo En. Selvaag Bolig has a projects under devel - number of large opment in the Oslo area, which extends from Jessheim in the north to Moss and Access to good in the south. Tønsberg land in these areas is essential for growth, and Selvaag Bolig now has a solid bank The company’s of sites in all these areas. present land holdings provide space for building 8-10 000 homes. By further developing the land portfolio with a view to diversification both geographi - cally and in terms of concepts, the group will be able to deliver even more homes operational Selvaag Bolig’s every year. platform, solid brand and financial position mean it is well positioned to The meet the opportunities it faces. board keeps the need to secure additional capital and a possible application for stock market listing under continuous observation, and takes the view that well group has rigged its organisation and is prepared for this. Director Director

(elected by the employees) Anne-Kari Drønen Mathiesen Baard Schumann Oslo, 21 March 2012 Demand for housing in Norwegian The background for continued price Population growth up to 2030 is new housing are expected to be highest priority areas, and in Selvaag Bolig’s the company has a solid platform for growth. urban areas has been high in recent years, which led to a nine per cent growth in house prices during 2011. growth is the combination of high population growth, low interest rates and unemployment, high pay growth and a rising housing shortage in urban areas experiencing growth pressures. The number of households is expected to rise sharply in coming decades, par- towns, which will ticularly in the large The SSB esti- boost housing demand. mates that the population will increase to from 4.9 million at 1 January 2011 6.1-6.6 million by 2030, depending on whether cautious or aggressive fore- particular increase A casts are applied. is expected in the number of first-time households requiring small homes This is reflected and terrace housing. commitment to in Selvaag Bolig’s priced small flats and terrace affordably housing through the Start and Hjem housing concepts. expected to be 350 000 in Oslo and about 125 000 in Akershus county, Rogaland and 60 000 in the City of This means that these areas will Bergen. have a high level of demand for new Director Director Ole Jarl Rettedal Karsten Bomann Jonsen - Maria Terese Hosen Maria Terese

(elected by the employees)

Chair Director Wenche Kjølås Wenche Olav Hindahl Selvaag

The group made capital contributions million in Selvaag Gruppen’s group over million in Selvaag Gruppen’s draft facility was converted in the second into new current interest- quarter of 2011 bearing debt to Selvaag Gruppen. in 2011 to associates before the merger which comprised NOK 25.5 million to Hansa Property Group and NOK 64.7 million to Selvaag Pluss Eiendom. governance Corporate Selvaag Bolig is committed to maintaining a high standard of corporate governance. healthy corporate culture is essential A for safeguarding confidence in the securing access to capital and company, All ensuing good value creation over time. and a shareholders will be treated equally, clear division of labour will exist between executive the board and company’s management. Selvaag Bolig complies with the Norwegian code of practice for corporate governance of 21 October 2010. detailed statement of the way Selvaag A Bolig implements the 15 sections of code can be found at www.selvaagbolig.no/en/investor/ Outlook Everything points to a good year for Selvaag Bolig. Forecasts from Statistics Norway (SSB) indicate annual price inflation of five-six per cent over the next few years. Growth and demand for

A 33 4 Total Total (388) equity Non- interests controlling controlling - (388) Company ers of the ers Equity at - - sharehold tributable to tributable - 987 234 - 987 234 - 100 000 - 100 000 - - 7 477 7 477 earnings Retained Retained (100 000) (100 000) - (100 000) Other reserves - - - (4 694) (4 694) (1 016) - (5 710) - - - 131 000 - (16 323) - 131 000 (16 323) - (16 323) - - - - 7 586 - 7 586 - - - (27 576) (27 576) - (27 576) - - 2 153 - 2 153 - 2 153 4 - - 4 translation translation differences Cumulative Cumulative Other capital paid-in Share Share premium - - - - - 131 000 ------7 586 - - - (74) - - (74) - (74) ------159 7 286 699 132 1 149 3 528 (389 212) 322 042 - 322 042 159 7 286 699 132 1 149 3 528 (389 212) 322 042 - 322 042 159 7 286 560 546 1 223 1 375 (345 313) 225 276 - 225 276 (21) (367) Share Share capital 53 802 933 432 - 82 413 17 587 - 136 353 957 938 699 132 1 153 3 528 (493 906) 1 304 198 6 461 1 310 659 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Issue of shares related to business combinations business to related of shares Issue for the period (loss) Profit received contribution Group for the period (loss) Profit EQUITY AT 1 JANUARY 2011 1 JANUARY EQUITY AT Purchase of treasury shares related to to related shares of treasury Purchase combinations business equity of liabilities to Conversion Other comprehensive income for the period for income Other comprehensive translation) currency (foreign taxes) (after received contribution Group the period for income Other comprehensive translation) currency (foreign EQUITY AT 31 DECEMBER 2010 EQUITY AT EQUITY AT 31 DECEMBER 2011 EQUITY AT Group contribution given contribution Group Group contribution given (after taxes) (after given contribution Group EQUITY AT 1 JANUARY 2010 1 JANUARY EQUITY AT Business combinations Business (amounts in NOK 1 000) with owners: Transactions the period: for income comprehensive Total with owners: Transactions companies in associated Equity adjustments and joint ventures the period: for income comprehensive Total CONSOliD of Changes in Equity Statement 46 ------45 533 2010 7 007 3 774 9 090 8 278 3 847 13 525 38 240 68 438 84 364 84 897 365 822 322 042 371 452 240 027 627 901 322 042 456 063 626 107 675 231 760 128 1 082 170 1 082 170 Director Anne Breive - - - Baard Schumann Baard 327 President and CEO President 2011 6 461 5 642 36 784 90 163 35 500 31 436 88 091 13 934 92 112 28 304 389 183 141 707 395 207 148 682 264 792 698 979

4 211 025 1 304 198 2 376 300 1 189 628 1 310 659 4 725 759 5 424 738 2 510 977 1 603 102 4 114 079 5 424 738

5 19 10 10 11 24 12 12 13 14 19 20 16 16 17 19 20 17 Note

23, 24 Director Director Karsten Bomann Jonsen Karsten (elected by the employees) (elected

Anne-Kari Drønen Mathiesen Anne-Kari Drønen D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Oslo, 21 March 2012 21 March Oslo, CONSOliD Director Director Ole Jarl Rettedal Ole Maria Terese Hosen Maria Terese (elected by the employees) (elected

Chair Director Wenche Kjølås Wenche Olav Hindahl Selvaag

ASSETS assets Non-current assets tax Deferred Trade receivables Trade interests Non-controlling Total equity Total Liabilities liabilities Non-current obligations Pension Deferred tax liabilities tax Deferred EQUITY AND LIABILITIES Equity of the Company shareholders to Equity attributable Loans to associated companies and joint ventures companies associated Loans to assets current Total ASSETS TOTAL Other intangible assets Other intangible Other non-current assets Other non-current assets non-current Total Property, plant and equipment Property, assets Current property Inventory Total non-current liabilities non-current Total payables Trade Current liabilities Current liabilities interest-bearing Current Investments in associated companies and joint ventures companies in associated Investments Total current liabilities current Total Current income taxes payable taxes income Current liabilities Total EQUITY AND LIABILITIES TOTAL Other current receivables Other current equivalents Cash and cash Provisions liabilities non-interest-bearing Other non-current Non-current interest-bearing liabilities interest-bearing Non-current Goodwill (amounts in NOK 1 000) Provisions liabilities non-interest-bearing Other current Statement of Financial Position Financial of Statement at 31 December

A 34 When the Group loses control of a subsidi- control loses When the Group ests in subsidiaries that do not result in the in subsidiaries that do not result ests the subsidiaries over control losing Group The as equity transactions. for accounted are and interests amounts of the Group’s carrying to adjusted are interests the non-controlling interests relative the changes in their reflect between in the subsidiaries. Any difference the amount by which non-controlling of the value and the fair adjusted are interests is recognised paid or received consideration of owners to in equity and attributed directly the Company. calculated on disposal is loss or ary, the profit (i) the aggregate between as the difference received of the consideration value of the fair and interest of any retained value and the fair amount of the assets carrying (ii) the previous (including goodwill), and liabilities of the interests. subsidiary and any non-controlling at carried of the subsidiary are When assets gain or cumulative and the related values fair in other compre- has been recognised loss in equity, and accumulated income hensive in other recognised the amounts previously in and accumulated income comprehensive as if the Company for accounted equity are assets disposed of the relevant had directly transferred or loss or to profit (i.e. reclassified earnings as specified by retained to directly of any invest- value IFRSs). The fair applicable subsidiary at the in the former ment retained as the is regarded is lost when control date subsequent for on initial recognition value fair under IAS 39 Financial Instru- accounting or, and Measurement ments: Recognition on initial recognition the cost when applicable, or a jointly in an associate of an investment entity. controlled The results of subsidiaries acquired or of subsidiaries acquired The results made are adjustments When necessary, balances, transactions, All intra-group inter- ownership Changes in the Group’s The Company’s ultimate controlling party is controlling ultimate The Company’s Gruppen AS. Selvaag of the Company is office The registered 22, 0580 Oslo. Lørenvangen 2.4 Consolidation include statements financial The consolidated of the Company and statements the financial entities (including special purpose entities) (its subsidiaries). by the company controlled the Company where is achieved Control the financial and govern to has the power obtain policies of an entity so as to operating its activities. This is generally benefits from when the Company holds exist to presumed rights. The than 50% of the voting more rights voting of potential and effect existence or convertible exercisable currently that are whether the when assessing considered are another entity. Company controls included in are disposed of during the year from statement income the consolidated the of acquisition or up to date the effective of disposal, as appropriate. date effective of subsidiaries is income comprehensive Total of the Company and the owners to attributed if this even interests the non-controlling to having interests in the non-controlling results a deficit balance. to of subsidiaries statements the financial to line with policies into bring their accounting of the Group. those used by other members in full on eliminated are and expenses income consolidation. reporting period, monetary items denominated denominated items monetary period, reporting at the retranslated are currencies in foreign Non-monetary at that date. prevailing rates of historical in terms measured that are items not retranslated are currency in a foreign cost in subsequent periods. D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate These Group consolidated financial state- financial consolidated These Group Selvaag Bolig AS (the ”Company”) and its sub- Selvaag is a property “the Group”) sidiaries (together in the construc- involved group, development in the sale for property tion of residential of business. course ordinary CONSOliD Notes 2011 year ended 31 December for the statements financial the consolidated to information 1: General Note policies accounting 2: Significant Note set out policies are The principal accounting applied to been consistently and have below periods presented. all accounting of compliance 2.1 Statement statements financial consolidated The Group’s with Inter- in accordance been prepared have (IFRS) national Financial Reporting Standards by the International issued and interpretations endor- and (IASB) Board Standards Accounting 2011. sed by the EU as at 31 December by the Board issue authorised for ments were 2012 . on 21 March of Directors 2.2 Basis of preparation statements financial consolidated The Group and on a going concern been prepared have derivatives for basis, except cost historical through value at fair recognised which are loss. or profit currency and presentation 2.3 Functional currency and presentation (a) Functional included in the individual financial Items entities are of each the Group’s statements of the primary using the currency measured in which the entity environment economic The con- (‘the functional currency’). operates presented are statements financial solidated functional and in NOK, which is the Company’s currency. presentation the Group’s and balances (b) Transactions of each statements the financial In preparing in curren- entity, transactions individual group functional currency cies other than the entity’s the functional currency into translated are at the prevailing rates using the exchange At the end of each of the transactions. dates 48 - - - - 47 25 491 2010 (624) (164) 9 197 2 517 4 328 44 310 86 964 42 335 57 976 15 671 28 580 13 525 (2 530) (7 730) 141 536 (38 300) (75 005) (24 993) (11 790) (25 714) (21 900) (193 261) - - - 299 2011 (151) 5 770 1 650 74 435 53 219 17 404 32 852 13 525 381 682 101 770 168 959 251 370 703 692 395 207 (28 975) (75 373) (42 624) (90 156) (444 001) (510 572) (147 265) (356 576) (354 862) 1 402 499

24 13 13 16 16 16 13 13 Note D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD Income taxes paid taxes Income and amortisation Depreciation CASH FLOW FROM OPERATING ACTIVITIES FROM OPERATING FLOW CASH taxes income before (loss) Profit net Other (gains) losses, and joint ventures companies associated from losses of (income) Share Net change in cash and cash equivalents and cash Net change in cash at 1 January equivalents Cash and cash Payments of group contribution contribution of group Payments financing activities from flow Net cash Proceeds from share issue share from Proceeds contribution group from Proceeds Repayments of borrowings Change in inventory property Change in inventory Net cash flow from operating activities operating from flow Net cash Change in trade receivables Change in trade payables Change in trade assets capital Changes in other working liabilities capital Changes in other working FROM INVESTING ACTIVITIES FLOW CASH assets fixed and intangible acquisition of tangible for Payments disposed and subsidiaries, net of cash disposal of businesses from Proceeds Dividends and distributions from associated companies and joint ventures companies associated from Dividends and distributions activities investing from flow Net cash CASH FLOW FROM FINANCING ACTIVITIES FLOW CASH borrowings from Proceeds Payments for acquisition of other investments and loans given and loans acquisition of other investments for Payments Payments for acquisition of associated companies and joint ventures companies acquisition of associated for Payments Net change in bank overdraft (Selvaag Group cash pool) cash Group (Selvaag Net change in bank overdraft Cash and cash equivalents at 31 December at 31 December equivalents Cash and cash (amounts in NOK 1 000) acquired and subsidiaries, net of cash acquisitions of businesses for Payments Statement of Cash Flows Statement to 31 December 1 January the financial period from for

A 35 2.13 Financial assets 2.13 Financial assets at fair recognised initially are Financial assets depends Subsequent measurement value. The Group of the assets. on the classification following assets in the its financial classifies or profit through value “at fair categories: The clas- and receivables”. and “loans loss” and purpose depends on the nature sification by and is determined of the financial assets management at the time of initial recognition. financial assets has no material The Group loss. or profit value through fair at classified non-derivative are Loans and receivables or determinable with fixed financial assets in an active not quoted payments that are (including Loans and receivables market. bank balances and other receivables, trade at amortised cost measured are and cash) any method, less interest using the effective impairment. other than those at fair Financial assets, for assessed are loss or profit through value of impairment at the end each indicators impai- are period. Financial assets reporting that, as evidence is objective there where red that occurred events of one or more a result of the financial the initial recognition after of the flows cash future the estimated asset, been impacted. have investment amount of the financial asset The carrying directly by the impairment loss is reduced of exception with the all financial assets for amount the carrying where receivables, trade the use of an allowance through is reduced is conside- receivable When a trade account. the off against it is written uncollectible, red of Subsequent recoveries account. allowance credited off are written amounts previously Changes in the account. the allowance against are account amount of the allowance carrying loss. or in profit recognised a financial asset derecognises The Group the cash rights to when the contractual only or it transfers expire, the asset from flows all the and substantially the financial asset to of the asset of ownership risks and rewards neither transfers If the Group another entity. all the risks and substantially nor retains control to and continues of ownership rewards recognises the Group asset, the transferred and an asso- in the asset interest its retained pay. to amounts it may have liability for ciated all the risks substantially retains If the Group of a transferred of ownership and rewards is determined as the difference between the between as the difference is determined amount of the and the carrying proceeds sales (other loss or in profit and is recognised asset net). gain/(loss), Loans and receivables Impairment of financial assets of financial assets De-recognition The asset’s residual values and useful values residual The asset’s The cost of inventories comprises all costs all costs comprises of inventories The cost 2.12 Property, plant and equipment 2.12 Property, recognised plant and equipment are Property, deprecia- accumulated less cost at historical cost Historical tion and impairment losses. attributa- that is directly includes expenditure Subsequent the acquisition of items. to ble carrying included in the asset’s are costs asset, as a separate amount or recognised that when it is probable only as appropriate, with the benefits associated economic future of the cost and the to the Group will flow item The carrying reliably. be measured can item part is derecognised. amount of the replaced is recogni- and maintenance All other repairs during the period in which sed as an expense on a is calculated Depreciation it is incurred. 3-10 years. basis, generally straight-line if and adjusted annually, reviewed are lives amount is carrying An asset’s appropriate. its recoverable to immediately down written amount exceeds carrying amount if the asset’s amount. Any gain recoverable its estimated arising on the disposal or retirement or loss plant and equipment of property, of an item buildings intended for sale in the ordinary in the ordinary sale for buildings intended or which is in the process of business course such sale. for or development of construction held land, property thus comprise Inventories under development and property resale, for at measured are Inventories and construction. value. and net realisable of cost the lower and other of conversion costs of purchase, to in bringing the inventories incurred costs of conver- The cost condition. their present the to related directly sion includes costs (such as amounts of the property construction and construction) for sub-contractors paid to overheads variable and of fixed an allocation and construc- during development incurred to attributable directly costs tion. Borrowing of or production the acquisition, construction of those assets, the cost added to are property, substantially are until such time as the assets Capitali- use or sale. their intended for ready than likely when it is more sation commences – assu- will be realised not that the project Other costs is regulated. ming that the plot to only of inventories included in the cost are attributable directly are that they the extent their present to bringing the inventories to including e.g. planning and condition, location is the value Net realisable and design costs. course in the ordinary selling price estimated at the prices based on market of business, the time for and discounted date reporting the estimated less if material, of money value costs and the estimated of completion costs When inventories the sale. make to necessary amount is recognised sold, the carrying are expense) as project (presented as an expense is revenue in the period which related recognised. D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Property may be sold with a degree of conti- may be sold with a degree Property which is land and has property The Group

down to the recoverable amount. Any gain or the recoverable to down will the disposal of an asset arising from loss the between as the difference be determined and value, and carrying price sales asset’s of statement in the consolidated recognised as Other net profit income comprehensive (loss). recognition 2.10 Revenue of the value the fair comprises Revenue the for or receivable received consideration in transactions and related of property sale activities, in of the Group’s course the ordinary with IAS 18 Revenues. accordance of property (a) Sale property of residential sale from Revenue under develop- of projects (including any sale at land) is recognised ment and undeveloped when all the conditions date, the transaction been satisfied. The trans- have recognition for at the time is completed of risk and control fer of delivery. which may be by the seller, nuing involvement of the construction complete to commitments of occupancy guarantee or a seller property, period of a certain for of a housing cooperative when the revenue recognises time. The Group of ownership of rewards risks and significant the the buyer, to transferred sold are property managerial neither continuing retains Group associated usually the degree to involvement over control nor effective with ownership can the goods sold, amount of revenue that and it is probable reliably be measured with the benefits associated the economic The amount to the Group. will flow transaction be reliably to is not considered of revenue contingencies until all material measurable been resolved. have the sale to relating (b) Lease revenues (ope- of property leasing from income Rental is a lessor) in which the Group leases rating basis over on a straight-line is recognised and included in lease of the relevant the term Other revenues. of services c) Sale is recognised of services sale from Revenue agent Estate is performed. when the service of with sale associated directly services Other revenue. included in Sales are property included in Other revenue. are services property 2.11 Inventory are inventories Under IAS 2 Inventories, course in the ordinary sale held for assets for of production in the process of business, be or supplies to or as materials such sale, or in the process in the production consumed include land Inventories of services. rendering resale. held for and other property CONSOliD 50 49 A cash-generating unit to which goodwill unit to A cash-generating cash-generating On disposal of the relevant defined in accor- units are Cash-generating Goodwill is measured as the excess of the as the excess Goodwill is measured in is achieved combination When a business be transfer- to consideration Any contingent 2.9 Intangible assets 2.9 Intangible Goodwill arising on an acquisition of a busi- at as established price at cost is carried ness (see of acquisition the business the date Goodwill is not amortised, 2.8 above). note the For impairment annually. for but is tested goodwill is purposes of impairment testing, cash-genera- each of the Group’s to allocated of cash-generating ting units (or collections of synergies benefit from to units) expected combination. the business impairment for is tested has been allocated is when there frequently or more annually, If the that the unit may be impaired. indication amount of the cash-generating recoverable amount, the than its carrying unit is less reduce to first is allocated impairment loss amount of any goodwill allocated the carrying of the the other assets the unit and then to to amount of based on the carrying rata unit pro for in the unit. Any impairment loss each asset loss or in profit directly goodwill is recognised of comprehen- statement in the consolidated recognised An impairment loss income. sive in subsequent goodwill is not reversed for periods. amount of goodwill is unit, the attributable or of the profit included in the determination on disposal. loss reporting. internal with Group dance recogni- initially are assets Other intangible value residual The asset’s value. sed at fair on an reviewed are useful life and expected If an if necessary. annual basis and adjusted the recoverable exceeds value carrying asset’s be written will immediately amount, the asset sum of the consideration transferred, the transferred, sum of the consideration in the interests amount of any non-controlling of the acquirer’s value and the fair acquiree, in the acquiree held equity interest previously the net of acquisition-date (if any) over acquired assets amounts of the identifiable of goodwill is Part and the liabilities assumed. obliga- tax of deferred the recognition due to tion at nominal value. held equity inte- previously the Group’s stages, value fair to is remeasured in the acquiree rest when the (i.e. the date at the acquisition date gain and the resulting control) obtains Group loss. or in profit if any, is recognised or loss, at fair will be recognised by the acquirer red Subsequent at the acquisition date. value of any contingent value the fair changes to as liability will be classified consideration loss. or in profit recognised a) Goodwill assets b) Other intangible D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD Joint venture arrangements that involve the that involve arrangements Joint venture is joint ventures from (loss) of income Share for accounted are combinations Business When a group entity transacts with its asso- entity transacts When a group been have policies of associates Accounting associated from (loss) of income Share 2.7 Investments in jointly controlled controlled in jointly 2.7 Investments entities arrangement is a contractual A joint venture and other parties under- the Group whereby activity that is subject to an economic take financial (i.e. when the strategic joint control the to policy decisions relating and operating the una- require activities of the joint venture control). sharing parties the of consent nimous entity in which of a separate establishment referred are has an interest each venturer entities. The Group controlled as jointly to controlled in jointly its interests reports entities using the equity method, as described above, in associates 2.6 Investments in note as is classified when the investment except for it is accounted in which case sale, held for Assets with IFRS 5 Non-current in accordance Operations. and Discontinued Sale Held for as this is (loss) profit included within operating operations. the Group’s to integral considered and business 2.8 Acquisitions of property combinations the through is acquired property Where acquisition of entities, management consider and activities of the assets the substance or of assets When acquiring a group acquired. a business, that do not constitute net assets the indivi- between is allocated price the cost and liabilities acquired assets dual identifiable as at the values fair based on their relative acquisition date. using the acquisition method. The of the consi- at the aggregate is recognised at acquisition measured transferred, deration and the amount of any non- value, fair date each For in the acquiree. interest controlling measures the acquirer combination, business in the acquiree interest the non-controlling or at the proportionate value either at fair net assets. identifiable of the acquiree’s share expensed. are incurred Acquisition costs investment. Any reversal of that impairment Any reversal investment. with IAS 36 to in accordance is recognised loss amount of the that the recoverable the extent increases. subsequently investment the resulting from losses and profits ciate, recognised are with the associate transactions state- financial consolidated in the Group’ in the of interests the extent to ments only the Group. to not related that are associate consis- ensure to necessary changed where by the Group. with the policies adopted tency profit is included within operating companies the to integral as this is considered (loss) operations. Group’s The results and assets and liabilities of and assets The results of acquisition over of the cost Any excess applied to of IAS 39 are The requirements 2.5 Segment information in a manner reported segments are Operating provided reporting with the internal consistent This the CEO and management group. to resources allocating for is responsible group of the opera- performance and assessing the purposes of internal ting segments. For utilises the percentage the Group reporting of which the degree method for of completion based on expenses is estimated completion cost. estimated total to relative incurred of under the percentage (loss) profit Operating method also includes an estimated completion element. profit in associates 2.6 Investments which the Group is an entity over An associate and that is neither a influence has significant in a joint venture. subsidiary nor an interest to partici- power is the influence Significant policy deci- in the financial and operating pate nor but is neither control sions of the investee those policies. Significant over joint control when exist to presumed is generally influence 20% and 50% of the Company holds between rights. the voting in these financial incorporated are associates using the equity method of acco- statements unting. Under the equity method, investments in the consolidated carried are in associates and cost of financial position at statement the Group’s recognise to thereafter adjusted com- and other loss or of the profit share When of the associate. income prehensive of an associate of losses share the Group’s in that associate, interest the Group’s exceeds its share recognising discontinues the Group recog- are Additional losses of further losses. has that the Group the extent to nised only obligations or or constructive legal incurred made payments on behalf of the associate. of the value of the net fair share the Group’s contingent liabilities and assets, identifiable at the recognised liabilities of an associate as goodwill, of acquisition is recognised date amount which is included within the carrying of the Group’s Any excess of the investment. of the identifiable value of the net fair share liabilities over liabilities and contingent assets, is reassessment, of acquisition, after the cost loss. or in profit immediately recognised recog- to whether it is necessary determine the to with respect nise any impairment loss When in an associate. investment Group’s amount of the carrying the entire necessary, for (including goodwill) is tested investment with IAS 36 Impair- impairment in accordance by comparing asset as a single ment of Assets in use amount (higher of value its recoverable sell) with its carry- to costs less value and fair recognised ing amount. Any impairment loss amount of the part of the carrying forms

A 36 1 Applicable to accounting periods accounting to Applicable on or after commencing 2010 1 February 1 January 2011 Date of issue Date 2009 October 2009November 1 January 2011 May 2010 Extinguishing Financial Liabilities with Equity Instruments IFRSs to Improvements 2009 November 2010 1 July The amendments to IAS 1 clarify that an entity may choose to disclose an analysis of other comprehensive income by item in by item income of other comprehensive an analysis disclose IAS 1 clarify that an entity may choose to The amendments to statements. the financial to of changes in equity or the notes the statement statement as a separate such an analysis present has chosen to of equity, the Group each component for year, In the current consolidated is included in the income comprehensive comprising Other Each item statements. financial in the consolidated been applied retrospectively. Such amendments have of changes in equity. statement party has been changed related aspects: (a) the definition of a two on the following in 2009) has been revised IAS 24 (as revised entities has been introduced. government-related for requirements the disclosure from and (b) a partial exemption definition of the revised entities. The application or -related not government-controlled and its subsidiaries are The company for disclosures the notes in any changes to has not resulted year IAS 24 in the current party set out in the revised of related party information. related D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate

The effective date of the individual improvements varies, and the earliest obligatory date is 1 July 2010. is 1 July date obligatory and the earliest varies, of the individual improvements date The effective

Rental income from operating leases (in which the Group is a lessor) is recognised on a straight-line basis over the term of the relevant lease and lease of the relevant the term basis over on a straight-line is recognised is a lessor) (in which the Group leases operating from income Rental where except term, the lease basis over on a straight-line as an expense recognised are is a lessee) payments (in which the Group lease Operating of the liability is, share defined benefit plan. The Company’s part of a multi-employer pensions (AFP) are retirement early to Obligations related 1 for the period beginning statements financial in the Group’s will be adopted and Interpretations that these Standards anticipate The directors Amendments to IAS 1 Amendments to of Financial Presentation (as part of Statements IFRSs to Improvements in 2010) issued Party IAS 24 Related (as revised Disclosures in 2009) InterpretationStandard/ Title IAS 32Amendments to IFRIC 14Amendments to of Rights Issues Classification Requirement of a Minimum Funding Prepayments IFRIC 19 (various Improvements IFRSs and interpreta- in 2010 tions) issued

CONSOliD lease arrangements. any finance not party to is currently The group leases. operating included in Other evenue. consumed. Contingent are leased asset the benefits from in which economic of the time pattern representative basis is more another systematic any not party to is currently The group incurred. are in the period which they as an expense recognised are leases arising under operating rentals arrangements. lease operating material benefits 2.20 Employee to the entitling them service rendered have expense when employees as an recognised are benefit plans retirement contribution defined to Payments contributions. contribution plan. a defined as is it were for and the plan is thus accounted not measurable however, 2.21 and interpretations standards and revised Adoption of new annual periods beginning on 1 January 2011 for effective and interpretations standards accounting Issued statements. in these financial the amounts reported affected and have year been applied in the current IFRSs have and revised new The following statements. financial in the consolidated disclosures and note presentation affected only The amendments have The applica- statements. financial in these consolidated also been adopted have IFRSs and interpretations and revised/amended new The following or arrangements. transactions future for the accounting but may affect impact on the amounts reported, tion has not had any material by the IASB, but had been issued below table in the and Interpretations the Standards statements, of authorisation these financial As at the date 2011. year ended 31 December the financial for not effective were the from will deviate Union as these in some cases by the European IFRSs as adopted for as applicable are dates Effective 1 January 2012 or later. and revised/amended impact of the adoption these new the potential considered not yet have by the IASB. The directors as issued dates effective to IFRS 1 amendments example (for statements financial the consolidated for relevant not clearly that are Standards IFRSs and Interpretations. below. not included in the table adoption of IFRSs) are First-time 52 51 The amount recognised as a provision is the as a provision The amount recognised Deferred tax assets and liabilities are and liabilities are assets tax Deferred and liabilities assets tax income Deferred Current and deferred tax are recognised in recognised are tax and deferred Current to items relate when they except loss, or profit in other comprehensive recognised that are the in equity, which case, or directly income also recognised are tax and deferred current or directly income in other comprehensive or tax current Where in equity respectively. the initial accounting arises from tax deferred is effect the tax combination, a business for the business for included in the accounting combination. 2.18 Provisions or infra- warranties e.g. for Provisions, has when the Group recognised are structure, obligation as or constructive legal a present that an it is probable events; of past a result to settle required will be resources of outflow be reliably the obligation; and amount can for not recognised are Provisions estimated. losses. operating future to required of the consideration estimate best obligation at the end of the present settle the risks account into period, taking reporting the obligation. surrounding and uncertainties using the cash is measured When a provision obliga- the present to settle estimated flows value amount is the present tion, its carrying of the the effect (where flows of those cash is material). of money time value 2.19 Leases whene- leases finance as classified are Leases substanti- transfer of the lease the terms ver to of ownership all the risks and rewards ally as classified are All other leases the lessee. and reduced to the extent that it is no longer that it is no longer the extent to and reduced will be profits taxable that sufficient probable be to all or part of the asset allow to available recovered. expected that are rates at the tax measured in the period which liability is apply to based on tax realised, or the asset settled been enacted laws) that have (and tax rates by the end of enacted or substantively of defer- period. The measurement reporting tax the reflects liabilities and assets tax red the from follow that would consequences at the end expects, manner in which the Group the or settle recover period, to of the reporting and liabilities. amount of its assets carrying enforcea- is a legally offset when there are against assets tax offset current right to ble liabilities and when the defer- tax current and liabilities relate assets tax income red by the same taxation levied taxes income to entity authority on either the same taxable is there entities where taxable or different on a net the balances settle to an intonation basis. the year for tax and deferred Current D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD Deferred tax is recognised for taxable taxable for is recognised tax Deferred assets tax amount of deferred The carrying Repurchase of the Company’s own equity own of the Company’s Repurchase as equity. classified are shares Ordinary 2.17 Income tax tax 2.17 Income tax current represents expense tax Income expense. tax and changes in deferred expense is based on taxable payable currently The tax from differs profit Taxable year. for the profit state- consolidated in the reported as profit of because income ment of comprehensive taxable that are or expense of income items that and items in other years or deductible The Group’s or deductible. taxable never are using tax is calculated tax current liability for or substantively been enacted that have rates period. by the end of reporting enacted on temporary is recognised tax Deferred amounts the carrying between differences and liabilities in the consolidated of assets corresponding and the statements financial of taxable bases used in the computation tax generally tax liabilities are Deferred profit. dif- temporary all taxable for recognised generally are assets tax Deferred ferences. temporary all deductible for recognised that it is probable the extent to differences against will be available profits that taxable differences temporary which those deductible and assets tax be utilised. Such deferred can if the temporary not recognised liabilities are the goodwill or from arises from difference (other than in a business initial recognition and liabilities in of other assets combination) neither the taxable that affects a transaction profit. nor the accounting profit with associated differences temporary in subsidiaries and associates, investments where except in joint ventures, and interests of the the reversal control to is able the Group that and it is probable difference temporary in will not reverse difference the temporary is cur- tax No deferred future. the foreseeable in of investments in respect recognised rently or joint ventures. associates period at the end of each reporting is reviewed an entity after deducting all of its liabilities. an entity after are by the Group issued Equity instruments net of received, at the proceeds recognised tax). (net of income costs issue direct and deducted is recognised instruments is recognised No gain or loss in equity. directly issue sale, on the purchase, loss or in profit equity own of the Company’s or cancellation On subsequent disposal of own instruments. (net of any received any consideration shares, transaction incremental attributable directly is effects) tax income and the related costs shareholders to included in Equity attributable of the Company. tax Current tax Changes in deferred Borrowings are classified as current liabi- as current classified are Borrowings

financial asset, the Group continues to recog- to continues the Group financial asset, recognises and also nise the financial asset the proceeds for borrowing a collateralised received. 2.14 Financial liabilities its financial liabilities as classifies The Group value through either financial liabilities at “fair or “other financial liabilities”. loss” or profit and depends on the nature The classification and is deter- purpose of the financial assets mined by management at the time of initial recognition. Borrowings at fair initially recognised are Borrowings Bor- incurred. costs net of transaction value, at amortised stated subsequently are rowings (net the proceeds between any difference cost; value and the redemption costs) of transaction the over statement in the income is recognised using the effective period of the borrowings method. interest has an unconditional the Group lities unless at of the liability for settlement defer right to the end of reporting 12 months after least period. and other payables Trade initi- recognised are and other payables Trade measured and subsequently value at fair ally interest using the effective at amortised cost is insignificant, element method. If the interest at the original carried are payables trade amount. invoice Derivatives and in initially recognised are Derivatives value. periods at fair subsequent reporting as Other recognised are value Changes in fair expense or –income. financial of financial liabilities De-recognition financial liabilities derecognises The Group obligations when, the Group’s when, and only The expire. or they cancelled discharged, are amount of the carrying between difference and the the financial liability derecognised is recognised paid and payable consideration expense or –income). (financial loss or in profit equivalents 2.15 Cash and cash in the as presented equivalents Cash and cash cash in hand, include flows of cash statement highly bank deposits, and other short-term with original maturities liquid investments of In the statement months or less. of three presen- are overdrafts financial position, bank liabilities. in current within borrowings ted 2.16 Equity that is any contract An equity instrument of in the assets interest a residual evidences

A 37 - Total Total (491) 7 140 38 196 (4 193) 136 103 805 312 (33 714) (118 421) (1 039 231) ------(491) Other Other 5 991 5 991 67 029 75 074 13 255 25 860 39 378 39 378 13 255 25 860 12 284 20 726 (5 770) (5 770) 219 782 240 846 (82 329) (94 449) (70 612) (885 775) (39 858) (44 310) (124 198) (120 537) ------546 143 754 1 206 842 (83) (71 136) 148 082 (83) (71 136) 148 082 (83) (3 886) (629) (144 278) (172 985) Other Other countries countries ------Norway Norway The rest of The rest of The rest Property development Property Property development Property - - - - - Oslo Oslo 3 661 8 045 8 442 21 064 12 605 38 196 12 605 14 929 (3 820) (4 193) Greater Greater Greater 844 343 218 199 136 103 620 523 184 789 190 847 28 454 190 847 28 454 (12 120) (23 122) (4 956) (33 714) (630 374) (184 789) (822 168) (217 063) (118 421) D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Other operating expenses Other operating Project expenses Project contract) (completed revenues Sales of completion) of percentage effect (adjustment expenses Project contract) (completed expenses Project expenses Project of completion) (percentage EBITDA (loss): profit Operating to EBITDA Reconciliation of completion) (percentage EBITDA Operating revenues Operating of completion) (percentage EBITDA net Other gain (loss), revenues Operating of completion) of percentage effect (adjustment revenues Sales Other operating expenses Other operating (loss): profit Operating to EBITDA Reconciliation of completion) (percentage EBITDA of completion) of percentage effect (adjustment revenues Sales Depreciation and joint ventures companies associated from (loss) of income Share (loss) profit Operating contract) (completed revenues Sales Project expenses (adjustment effect of percentage of completion) of percentage effect (adjustment expenses Project contract) (completed expenses Project Depreciation and joint ventures companies associated from (loss) of income Share (4 452) Other gain (loss), net Other gain (loss), Operating profit (loss) profit Operating As of 31 December 2010 As of 31 December As of 31 December 2011 As of 31 December (amounts in NOK 1 000) (amounts in NOK 1 000) Within the Greater Oslo-segment, the project ”Løren 2B” makes a material contribution towards EBITDA in 2011. However, this project is 70% this project in 2011. However, EBITDA towards contribution a material 2B” makes ”Løren the project Oslo-segment, Within the Greater of but as an allocation expense, as project not reported are fees of 3.7%. Guarantee with an ownership interests by the non-controlling guaranteed Bolig and the non- Selvaag 50/50 between approximately are shared project for this profits This implies that in EBITDA. reflected and thus not profit interests. with the ownership and not in accordance interests controlling CONSOliD 4: Segmentinformation Note make used to and which are by the CEO and management group reviewed segments based on reports the operating Management has determined quarter reporting period. During the third at the end of to the CEO and management group reported were below decisions. The figures strategic segments. The main its operating redefined AS, SPE KS and Bo En the Group Group with Hansa Property the transactions of 2011 and following of Norway, and Other the Rest Oslo, regions: Greater geographic (”Boligutvikling”) within three Development defined as Property now segments are the segments Real also comprised reporting Group Combinations. Previously, 6 Business in note further discussed are Countries. The transactions and expenses. revenue with unallocated included within ”Other”, along now are Agent. These operations and Estate Modules, Development, Estate reporting. segment with the new correspond to been adjusted have figures The comparative based on expenses is estimated of completion which the degree for reporting method in its internal of completion utilises the percentage The Group element. profit method also includes an estimated completion of under the percentage (loss) profit Operating costs. estimated total to relative incurred of risk at the time of transfer is recognised method, in which revenue contract is based on the completed statement income consolidated The group be can contract) completed to of completion percentage (from of this effect A reconciliation of the property. being the point of delivery and control, (loss)”. profit operating to EBITDA under ”Reconciliation in the segment reporting found The method of measurement EBITDA. determining method for of completion based on the percentage segment results management considers Group from disposals (losses) of income net”, and “Share (loss), and amortisation”, “Other gain “Depreciation before (loss) profit is defined as operating this type of activity is segments since operating to not allocated are and expenses Financial income and joint ventures”. companies associated from liquidity. focused on managing the Group’s function finance managed by a central 54 53 Applicable to accounting accounting to Applicable on or after periods commencing 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 Date of issue Date October 2010October 2011 1 July November 2009November 1 January 2015 May 2011 May 2011 May 2011 May 2011 June 2011 2010December June 2011 1 January 2012 2012 1 July May 2011 May 2011 1 January 2013 2011December 2011December 1 January 2014 1 January 2014 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate

CONSOliD Title Financial Instruments Financial Instruments Consolidated Financial Statements Consolidated Joint Arrangements in Other Entities of Interests Disclosure Measurement Value Fair Income of Other Comprehensive of Items Presentation Assets of Underlying – Recovery Tax Deferred Benefits Employee Financial Statements Separate and Joint Ventures in Associates Investments and Financial Liabilities - Offsetting Financial Assets Disclosures and Financial Liabilities Offsetting Financial Assets 2011 December and Financial Liabilities Offsetting Financial Assets 1 January2013 2 2 2 2 2 2 2 2 2 2 2 2

The standard/amendment has not been adopted by the EU as at the date of approval of these financial statements. of these financial of approval by the EU as at date has not been adopted The standard/amendment

2 will be required. other sources from apparent not readily and liabilities that are amounts of assets about the carrying and assumptions Estimates in the period recognised are estimates accounting to on an ongoing basis. Revisions reviewed are assumptions and underlying The estimates that have sheet date, at the balance uncertainty of estimation sources and other key the future, concerning assumptions the key are The following Standard/ Interpretation Amendments to IFRS 7Amendments to IFRS 9 of financial assets - transfers Disclosures IFRS 10 IFRS 11 IFRS 12 IFRS 13 IAS 1 Amendments to in 2011) IAS 28 (revised IFRS 7 Amendments to Amendments to IAS 12 Amendments to in 2011) IAS 19 (revised in 2011) IAS 27 (revised IAS 32 Amendments to Amendments to IAS 32 Amendments to The property development projects are assets held for sale in the ordinary course of business or in the process of production for such sale. Such assets Such assets such sale. for of production or in the process of business course in the ordinary sale held for assets are projects development The property construction, and under development properties resale, for held comprise land, properties with IAS 2. Inventories in accordance as inventory classified are less of business course in the ordinary selling price is the estimated value Net realisable value. and net realisable of cost at the lower measured and are management carries value, the net realisable In determining the sale. make to necessary costs and the estimated of completion costs the estimated levels, and rental housing prices such as expected factors including macroeconomic the valuation, for relevant factors of important out assessment management uses appropriate, When considered progression. and project costs authorities, construction from yields, approvals as expected as well and in Changes in circumstances estimates. own the Company’s corroborate or to values property estimate to experts valuation external from reports 5. note to Also refer value. net realisable the estimated in amendments to will result and assumptions assessment management’s Critical accounting judgements and key sources of estimation uncertainty of estimation sources judgements and key accounting 3: Critical Note to management requires It also estimates. accounting critical certain the use of requires with IFRS conformity in statements of financial The preparation policies. accounting the group’s of applying its judgement in the process exercise The estimates be relevant. to considered that are and other factors experience based on historical are assumptions and associated The estimates results. actual related equal the rarely will, by definition, both affects periods if the revision and future that period or in the of revision only affects if the revision is revised in which the estimate periods. and future current amounts Certain year. financial and liabilities within the next carrying amounts of assets to the adjustment causing a material risk of a significant respect with assumptions to make requiring management be estimated, must disclosure related and statements the financial included in or affecting prepared. are statements at the time financial with certainty be known which cannot or conditions values to property: inventory for value of net realisable Estimation impairment of goodwill Estimated 2.9. The recoverable in note policy stated with the accounting any impairment in accordance whether goodwill has suffered annually tests The Group No impairment the use of estimates. require These calculations or useful value. value based on fair determined units are amounts of cash-generating key change in possible reasonably that any 2011 financial periods and management has determined the 2010 through been made for have charges carrying amount of goodwill. the reduce to cause the need would not flows, cash and estimated rate such as discount assumptions, Provisions is based on present The provision of parking areas. and construction obligations, e.g. infrastructure contract for has made provisions The Group to Also refer and circumstances. based on individual contracts is estimated timing and amount. The size of the provision obligation, but of uncertain 20. note

A 38 - 865 4 129 66.7% 69.8% 37.5% 50 000 44 458 35 000 83 867 83 042 90 000 40 000 40 000 599 396 767 170 255 360 101 136 868 306 425 360 (32 451) Bo En AS Fair value Fair ------5 000 50 000 30 000 30 000 16 752 46 752 502 532 301 045 803 577 (38 248) 23.8.2011 22.8.2011 25.11.2011 - - - - 865 5 797 4 129 39 458 35 000 83 867 83 042 84 384 375 281 569 396 737 170 187 612 821 554 562 893 Carrying amount adjustment value Fair Date of business combination of business Date equity acquired of voting Proportion Selvaag Pluss Eiendom KS Pluss Selvaag AS Group Hansa Property Main business activity Main business Development and sale of properties and sale Development Development and sale of properties and sale Development Development and sale of properties and sale Development D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate As a condition for the merger between Selvaag Bolig ASA and Hansa Property Group AS the Company has undertaken a private placement to the to placement a private AS the Company has undertaken Group Bolig ASA and Hansa Property Selvaag between the merger for As a condition as a wholly-owned Bo En AS was instituted 37.5% of the shares. Bolig ASA assumed in Bo En AS, Selvaag with other shareholders In agreement in the third as an expense but is recognised amount transferred, not included in the consideration of NOK 11 million are costs The transaction Shares in Selvaag Bolig ASA in Selvaag Shares Other intangible assets Other intangible plant and equipment Property, and joint ventures companies in associated Investments ASSETS assets Non-current assets tax Deferred Loans to associated companies and joint ventures companies associated Loans to assets Other non-current Total non-current assets non-current Total Current assets Current property Inventory Other current receivables Other current equivalents Cash and cash assets current Total Trade receivables Trade ASSETS TOTAL 2011 Selvaag Pluss Eiendom KS Pluss Selvaag Hansa Property Group AS Group Hansa Property Bo En AS Cash or cash in shares consideration Future business in aqcuired share ownership of existing value Fair (amounts in NOK 1 000) consideration Total (amounts in NOK 1 000) CONSOliD 56 Business combinations 6: Business Note Acquisitions during on activities, which focus of the Group’s expansion with the purpose of continuing been acquired have (with subgroups) companies The above areas. as in other selected cities in Norway, as well the largest in and around properties of residential and sale development Selvaag companies. of the two a merger AS approved Group Bolig ASA and Hansa Property Meetings in Selvaag On 10 June 2011 the Annual General was implemented reporting purposes. The merger financial for and the acquirer the merger after entity that will operate Bolig ASA is the continuing of control. transfer for 2011 which is also the date on 22 August holding a Bolig ASA currently in Selvaag 2011 and has resulted on 23 August was implemented issue Eiendom KS. The share Pluss in Selvaag owners in the company. interest 100% ownership on was completed these shares for of control 2011. The transfer meeting held 21 November general the extraordinary from subsidiary upon approval 2011. 25 November Consideration invol- of the companies based on a valuation Eiendom KS is estimated Pluss Selvaag for as part of the consideration issued of shares value The fair and pricing of the properties is based on management’s The valuation these companies. between ratios and the exchange in the transactions ved basis. Bolig ASA on a going concern of Selvaag as the value as well within each company, projects income. in comprehensive expenses” as part of ”Other operating quarter, Eiendom KS Pluss combination - Selvaag of the business on the date recognised and liabilities assets Identifiable - - - - - 55 200 (8%) 2010 Total 2 600 6 931 8 636 (4 900) 356 291 452 302 556 911 (95 116) (125 351) 3 418 542 ------100 (4%) 2011 9 531 365 822 94 645 40 571 97 651 penses (31 040) (125 351) 2 367 022 1 749 358 4 211 025 365 822 project ex- project Capitalised Capitalised ------of land 13 488 538 328 69 168 1 323 844 82 656 1 844 003 4 211 025 Borrowing cost cost Borrowing - - - - - Land 8 636 5 096 (4 900) 411 731 356 291 (64 076) (97 651) 2 025 530 2 284 366 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD Additionally, and at the Group’s request, an external valuations of properties have been performed as of 31 December 2011. Group management 2011. Group as of 31 December been performed have of properties valuations an external request, and at the Group’s Additionally, properties party, while by an external been valued the acquisition had previously (HPG) prior to Group included in Hansa Property The properties financial institutions. from borrowings for as collateral pledged property inventory 16 for See note cancellable. are acts as a lessor the Group where leases 2011 and 2010, all operating As of 31 December As of 1 january 2010 Effect on inventory properties (undeveloped land) (undeveloped properties on inventory Effect Adjustment to the required rate of return (basis points) of return rate the required to Adjustment Work in progress Work Land (undeveloped) Finished projects Carrying amount as of 31 December Additions Reclassifications of land to capitalised project expenses project capitalised to of land Reclassifications Inventory expenses for delivered units delivered for expenses Inventory Annual impairment losses Carrying amount as of 31 December 2010 Carrying amount as of 31 December Reversal of impairment losses Reversal Additions Acquisition of subsidiaries (note 6) Acquisition of subsidiaries (note Reclassifications of land to capitalised project expenses project capitalised to of land Reclassifications Inventory expenses on delivered units on delivered expenses Inventory Annual impairment losses Carrying amount as of 31 December 2011 Carrying amount as of 31 December (amounts in NOK 1 000) of impairment losses Reversal (amounts in NOK 1 000)

Inventory property 5: Inventory Note 3.85% and 5.75% during 2011. There between were capitalisation for eligible costs the amount of borrowing determine utilised to rates Capitalisation with qualifying properties. projects no active were during 2010 as at the time there property on inventory interest was no capitalised of properties Valuation of the assessment An internal value. and net realisable of acquisition cost the lowest to valued and are part of inventory considered of land are Plots individual plots/properties. for value net realisable determine to in order at year-end annually is prepared property of inventory value current location, including size, geographic valuation of individual plots/properties, to the relevant assumptions significant the most has determined and timing of sale. development, for potential regulation, valuation external time. The the first party for by the external been valued Eiendom KS have Pluss Bolig ASA and Selvaag part of Selvaag previously units sold). (excluding valuation the previous since of HGP properties in the value an increase indicates Sensitivity analysis the same extent. to not affected 2011. Carrying amounts are as of 31 December values net realisable for has been performed A sensitivity analysis property inventory Impairment test no mate- were 2011. There NOK 4.9 million for (buildings and land) amounting to property on inventory impairment losses has recognised The Group during 2010. impairment losses years’ of previous or reversal rial impairment losses revenues lease Operating included in the line ”Other of NOK 23.6 million and 17.9 in 2011 2010, respectively, revenues lease operating recognised The Group income. of comprehensive statement in the consolidated revenues”

A 39 - - - - - 842 121 679 100 289 849 1 335 2 545 4 780 83 494 34 274 10 593 20 153 45 840 149 775 800 886 812 617 157 937 223 930 268 385 425 360 817 397 492 315 325 082 100 278 Bo En AS (325 082) Fair value Fair ------1 501

83 494 83 494 83 494 803 577 130 959 (674 119) - - - - - 842 121 679 100 289 849 1 335 2 545 5 975 4 780 34 274 10 593 20 153 45 840 562 893 149 775 800 886 812 617 184 891 157 937 223 930 817 397 408 821 150 940 (417 928) Carrying amount adjustment value Fair Selvaag Pluss Eiendom KS Pluss Selvaag AS Group Hansa Property D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate The fair value of trade receivables and other receivables in Selvaag Pluss Eiendom KS is NOK 84.7 million and includes trade receivables with a receivables Eiendom KS is NOK 84.7 million and includes trade Pluss in Selvaag and other receivables receivables of trade value The fair with a fair receivables AS is NOK 4.2 million and includes trade Group in Hansa Property and other receivables receivables of trade value The fair of NOK 0.3 value with a fair receivables in Bo En AS is NOK 1.1 million and includes trade and other receivables receivables of trade value The fair Consideration transferred Consideration Deferred tax liabilities tax Deferred Provisions liabilities non interest-bearing Other non current liabilities interest-bearing Non-current ASSETS assets Non-current assets tax Deferred assets Other intangible plant and equipment Property, receivables Trade ASSETS TOTAL liabilities Non-current obligations Pension Investments in associated companies and joint ventures companies in associated Investments and joint ventures companies associated Loans to assets Other non-current assets non-current Total assets Current property Inventory receivables Other current equivalents Cash and cash assets current Total Current liabilities Current liabilities interest-bearing Current payables Trade LIABILITIES TOTAL Current tax payables tax Current Provisions liabilities non interest-bearing Other current liabilities current Total Fair value of net assets value Fair Non-controlling interests Non-controlling Fair value of identifiable net assets acquired net assets of identifiable value Fair (amounts in NOK 1 000) liabilities non-current Total (amounts in NOK 1 000) Goodwill CONSOliD 58 AS and Bo En Group Eiendom KS, Hansa Property Pluss of Selvaag combination with the business in connection and liabilities assumed Assets and liabilities is assets of identifiable The measurement combination. of the business on the date value fair at the estimated been recognised have valuations. by management, pending final determined values based on provisional impairment. been made for have of NOK 0.9 million. No provisions value fair be impaired. to is NOK 7.0 million, of which 5.2 million considered receivables of the trade of NOK 1.8 million. The nominal value value impairment. been made for have million. No provisions Goodwill Identifiable assets and liabilities recognised on the date of the business combination - Bo En AS of the business on the date recognised and liabilities assets Identifiable ------57 472 610 1 922 7 079 49 873 71 926 42 087 12 267 68 390 42 050 39 064 81 114 15 286 22 365 308 839 187 735 427 403 473 198 674 119 428 013 450 378 417 928 2 018 260 2 220 184 1 869 759 Fair value Fair 2 693 383 1 938 149 2 019 263 ------35 730 (137 841) (102 111) (102 111) ------472 610 6 357 1 922 7 079 49 873 12 267 68 390 42 050 39 064 81 114 15 286 22 365 209 767 308 839 187 735 427 403 575 309 428 013 450 378 2 018 260 2 220 184 1 869 759 2 795 494 1 938 149 2 019 263 Carrying amount adjustment value Fair D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD ASSETS assets Non-current assets tax Deferred Other non-current assets Other non-current assets non-current Total LIABILITIES liabilities Non-current obligations Pension Other intangible assets Other intangible plant and equipment Property, and joint ventures companies in associated Investments Loans to associated companies and joint ventures companies associated Loans to Current assets Current property Inventory receivables Trade receivables Other current equivalents Cash and cash Total current assets current Total TOTAL ASSETS TOTAL Deferred tax liabilities tax Deferred Provisions Non-current liabilities Non-current obligations Pension Deferred tax liabilities tax Deferred Provisions liabilities non.interest-bearing Other non-current liabilities interest-bearing Non-current Total non-current liabilities non-current Total Current liabilities Current liabilities interest-bearing Current Trade payables Trade payables tax Current Provisions Other current non interest-bearing liabilities non interest-bearing Other current liabilities current Total LIABILITIES TOTAL Fair value of net assets value Fair Other non-current non-interest-bearing liabilities non-interest-bearing Other non-current liabilities interest-bearing Non-current Total non-current liabilities non-current Total Current liabilities Current liabilities interest-bearing Current Trade payables Trade payables tax Current Provisions Other current non interest-bearing liabilities non interest-bearing Other current liabilities current Total LIABILITIES TOTAL Fair value of net assets value Fair (amounts in NOK 1 000) Identifiable assets and liabilities recognised on the date of the business combination - Hansa Property Group AS Group combination - Hansa Property of the business on the date recognised and liabilities assets Identifiable

A 40 ------1 2010 2010 Total 1 413 7 007 7 007 7 007 7 007 11 913 13 327 (9 447) (7 033) (7 074) (2 864) (6 083) (2 540) (4 382) 476 721 476 721 483 728 479 346 (27 636) (17 155) (27 636) (43 249) (36 583) (23 256) - - 2011 2011 (628) 1 100 Other 21 005 13 488 19 447 (2 658) (1 354) (7 283) (8 057) 44 545 44 545 44 545 42 663 (1 882) (60 413) (36 202) (32 002) (19 776) (46 925) (96 665) (55 562) (36 115) intangible assets intangible - - 50 000 50 000 50 000 47 500 (2 500) 5 12 Note Note Note - 7 007 7 007 7 007 7 007 382 176 382 176 389 183 389 183 Goodwill Trademarks D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Other operating expenses primarily consist of operating lease and administrative expenses for the Selvaag Bolig Group headquarters and other headquarters Bolig Group the Selvaag for expenses and administrative lease of operating consist primarily expenses Other operating Total financial income Total interest Capitalised Other financial income Total other operating expenses other operating Total Net foreign currency gains currency Net foreign cost at amortised on financial liabilities measured expenses Interest Consultancy expenses Consultancy expenses related Commisions and other sales on receivables Losses Other financial expenses Other financial expenses financial Total expenses Net financial Net foreign currency losses losses currency Net foreign Other operating expenses Other operating Interest income on financial assets measured at amortised cost at amortised measured on financial assets income Interest Operation and maintenance Operation Carrying amount at 31 December 2010 Carrying amount at 31 December Carrying amount at 31 December 2009 Carrying amount at 31 December Acquisition cost amortisation Accumulated Cost at 31 December 2010 at 31 December Cost Cost at 31 December 2009 at 31 December Cost Additions Disposals Specification of carrying amount of Specification of acquisition Cost Total interest expenses interest Total Acquisition cost Additions Accumulated amortisation Accumulated Disposals 2011 at 31 December Cost (amounts in NOK 1 000) (amounts in NOK 1 000) (amounts in NOK 1 000) 2011 Carrying amount at 31 December CONSOliD 60 Intangible assets assets 10: Intangible Note Consultancy expenses during 2011 are material and not directly comparable with a typical operating year. The Group has employed extensive man- extensive has employed The Group year. operating with a typical comparable and not directly material during 2011 are expenses Consultancy consultancy Of the total marketing. as general as well initial public offering, the Company’s for preparations transactions, large to related power marketing. and to the initial public offering for preparations to NOK 30 million is related expenses, of NOK 10.5 million. a total Gruppen for Selvaag from purchased services related and expenses 9: Financial income Note Other operating expenses 8: Other operating Note - - 59 466 2010 2010 2 064 1 135 1 135 (6 303) (1 335) (1 395) (44 699) (51 202) - - 2011 2011 (136) 3 747 (9 466) (2 952) (2 678) (2 816) (2 952) (64 970) (76 319) D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD deductible. is not tax combinations Goodwill that has arisen as part of business to non-controlling attributable assets of net identifiable value at the fair measured are of control of transfer at the date interests Non-controlling the period in for loss and NOK 2.4 million to revenues NOK 1.5 million in sales Eiendom KS has contributed Pluss 2011 Selvaag 24 August From been NOK 357.5 million and the loss have would the Group for revenues 1 January 2011 the sales from had been consolidated If these businesses Other pension costs (including early retirement (AFP) retirement (including early Other pension costs Net pension costs Social security tax (defined benefit plans) costs Pension contribution plans) (defined costs Pension Other benefits inventory to capitalised Salary expense expenses salaries and personnel Total Pension cost - defined contribution and disability pension plan - defined cost Pension disability pension plan to related of provision Reversal (amounts in NOK 1 000) and salaries Wages (amounts in NOK 1 000) As of 31 December 2011, the Group had 87 employees. In 2011, the average number of employees (and full-time equivalents) was 87. (and full-time equivalents) number of employees In 2011, the average had 87 employees. 2011, the Group As of 31 December costs of pension Specification retire- included in the early were employees contribution plan. 44 current included in the defined 87 employees were 2011, there As of 31 December Bolig ASA. Selvaag 10 for note to ment (AFP) plan. Also refer occu- to a pension plan in line with the Act relating offer to required in Norway are Act section 7-30 a), companies with the Accounting In accordance a pension plan that meets these requirements. have companies and the Group’s tjenestepensjon”), om obligatorisk pational pensions (”lov Goodwill arising from business combinations is primarily related to anticipated synergies from on-going operations and the benefit of integrating the and the benefit of integrating on-going operations from synergies anticipated to related is primarily combinations business Goodwill arising from obligation at nominal value. tax deferred recognising to be attributed of goodwill can Part premium). (control the group into business entire shareholders. results on group Effect Eiendom KS, and which Pluss in Selvaag interest a prior 33.3% ownership from a gain of NOK 62.6 million which resulted has recognised The Group the prior when re-measuring a gain of NOK 14.6 million was recognised Similarly, combination. in the business value at fair was re-measured a gain of NOK 1.5 mil- rise to in Bo En AS gave interest a prior 62.5% ownership Finally, value. AS at fair Group in Hansa Property interest ownership on disposal of associated and gains (losses) of profit ”share gain of 78.7 million is included in the item The total value. at fair lion when re-measured income. of comprehensive in the statement and joint ventures” companies and NOK revenue NOK 81.4 million in sales 2011 contributed 24 August AS has from Group Hansa Property income. of comprehensive the statement 0.2 million in sales 2011 contributed 26 November Bo En AS has from income. of comprehensive the period in statement for loss 11.6 million to income. of comprehensive the period in statement for loss and 1.2 million to revenue been NOK 53.7 million. have in 2011 would the Group for expenses 7: Salaries and personnel Note

A 41 - -

1 (25) (11) 2010 (733) (491) Total Total 7 002 5 420 8 278 1 247 3 255 8 254 4 998 3 787 3 774 5 642 34 916 21 100 61 436 68 438 (1 224) (1 388) (2 612) 1 205 130 (25) (11) 2011 (733) (491) 1 247 3 255 6 254 1 787 1 774 2 998 3 642 29 815 57 941 31 436 58 276 88 091 (1 224) (1 388) (2 612) 3-5 years 3-5 years straight-line straight-line

------2 000 2 000 2 000 2 000 2 000 Residential properties Residential properties Other equipment D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Other current financial receivables financial Other current expenses Prepaid Total other current receivables other current Total Other receivables Interest-bearing receivables from associated companies and joint ventures companies associated from receivables Interest-bearing Cost at 31 December 2011 at 31 December Cost 2009 at 31 December depreciation Accumulated Trade receivables Trade Group the Selvaag from receivables non-interest-bearing Current Disposals 2010 Depreciation 2010 Depreciation 2010 at 31 December depreciation Accumulated Translation differences Translation Disposals 2011 Cost at 31 December 2009 at 31 December Cost Depreciation method Depreciation Depreciation 2011 Depreciation 2011 at 31 December depreciation Accumulated Carrying amount at 31 December 2010 Carrying amount at 31 December Additions 2011 Translation differences Translation 2010 at 31 December Cost Additions 2010 Carrying amount at 31 December 2011 Carrying amount at 31 December (amounts in NOK 1 000) useful life Estimated (amounts in NOK 1 000) The carrying amounts of trade and other receivables are denominated in NOK. denominated are and other receivables amounts of trade The carrying Trade and other receivables 12: Trade Note CONSOliD based on management’s are used in the estimates The liquidity forecasts by the concept. generated value future based on the expected is calculated of 15% rate using a discount are discounted cash flows Future period. during a five-year of the ”Pluss-concept” value excess of the expected estimate tax). (before assets c) Other intangible is amount of the asset recoverable 6. The in note detailed businesses leases in acquired property long-term include specific assets Other intangible cash expected of future estimate based on management’s are Liquidity forecasts lease. of the property value future based on the expected calculated leased, the meters are based on the number of square assessments Value period. of a five-year course leases in the by property generated flows of 10% after rate at a discounted are flows cash Future expenses. lease and variable meter per square income lease space, leasable amount of idle tax. plant and equipment 11: Property, Note 62 - - 61 (4 382) (4 382) - - (1 882) (1 882) 5 years 5 years - - (2 500) (2 500) 5 years 5 years Straight-line Straight-line Straight-line - - 7 007 7 007 7 007 213 309 168 867 389 183 Goodwill Goodwill - - - - - D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD

The value of intangible assets is tested for impairment annually, or more often when there is indication that the value may be impaired. If the may be impaired. that the value is indication when there often or more impairment annually, for is tested assets of intangible The value in the future the Group for will generate that the asset based on the value units is calculated amount of the cash-generating The recoverable the carrying exceed to amount is found The recoverable described above. in line with the methodology Other goodwill of NOK 7 million is evaluated Accumulated amortisation at 31 December 2009 amortisation at 31 December Accumulated Total Total Accumulated amortisation Accumulated 2011 2011 Property development - Greater Oslo - Greater development Property of Norway - The rest development Property Other Oslo - Greater development Property of Norway - The rest development Property Other Write-downs Amortization 2010 amortisation at 31 December Accumulated Write-downs Amortization Accumulated amortisation at 31 December 2011 amortisation at 31 December Accumulated Estimated useful life Estimated Amortisation method

as to KS and Bo En AS, as well Eiendom Pluss the acquisitions of Selvaag to 2010 and 2011 relates of goodwill from value The change in the carrying to relates of the trademark The value further details. for combinations 6 - Business note to refer AS. Please Group with Hansa Property the merger leases. property long-term to related are assets other intangible while Pluss, Selvaag the brand amount. its recoverable to down is written amount, the asset than the carrying amount is less recoverable assets of goodwill and other intangible Impairment testing assets, Other intangible of impairment exist. indications or external if internal often or more impairment annually, goodwill for tests The Group impairment if for and tested useful life their expected will be amortised over leases property and long-term Pluss” ”Selvaag including the trademark may be impaired. that the value during the period indicate events a) Goodwill segments as follows: cash-generating each of the Group’s to is allocated combinations business Goodwill arisen from and fourth of Bo En AS during the third shares Eiendom KS and the remaining Pluss Selvaag Group, the acquisitions of Hansa Property Following of The rest Oslo, - Greater areas geographic three across development Property to segment reporting its operating altered of 2011, the Group quarter in 2010. Com- Selvaag the acquisition of Meglerhuset from the ”Other” segment originated to Goodwill allocated and Other. Norway, Other countries, for further 6 and note for segment information 4 to note Refer structure. company revised reflect the to restated been for 2010 have figures parative combinations. on business information unit. The cash-generating each from flows cash of future assessment based on management’s are tax) (before in use). Liquidity forecasts (value the representing value terminal by a followed 2011, as of 31 December portfolio for its property time horizon the Group’s period reflects forecast reflects spe- tax) which also of 10% (before rate using a discount discounted are flows The cash produced. volume of future estimate management’s at 0%. estimated value is terminal in the rate growth volume The future not been adjusted. have cash flows for which the estimated cific risks amount. Sensitivity analysis: with NOK 153 million and 277 million, respec- value the terminal points will reduce of 1 and 2 percentage of return rate in the required Increase with NOK 152 million and value the terminal will reduce of 10 and 20 percent metres) (square volume production in the future Decrease tively. impairment of goodwill. in the need for will result Neither of these scenarios 303 million, respectively. b) Trademark amount of the asset 6. The recoverable in note Eiendom KS detailed Pluss was included in the acquisition of Selvaag Pluss” ”Selvaag The trademark

A 42 - Total Total (388) 4 966 1 495 6 461 13 525 13 525 31.12.2010 paid-in capital - (4 297) - 100 000 - - - 398 611 502 920 90 000 NCI carrying amount NCI carrying Other as of 31 December 2011 as of 31 December - 395 207 395 207 paid-in capital 31.12.2011 (6) - - 131 000 7 586 131 000 7 586 2011 (1 010) (1 016) Share Share premium - (4 297) - - 159 7 286 560 546 567 991 159 7 286 699 132 706 577 (21) (367) NCI share of profit (loss) (loss) of profit NCI share Share Share capital 3.7% 25.0% - - - 100 100 shares (10 531) 2 441 756 4 884 85 116 Number of 41 285 820 10 814 568 82 413 13 644 552 21 629 17 587 27 289 376 982 475 631 68 176 265 136 353 957 938 699 132 1 793 423 31 December 2011 31 December NCI ownership in % NCI ownership D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate The company holds 10 531 treasury shares as of 31 December 2011 (nil as of 31 December 2010). 2011 (nil as of 31 December as of 31 December shares holds 10 531 treasury The company mergers. to related and equity effects Group, in the Selvaag companies from received contribution of group consists Other paid-in capital Restricted bank accounts Restricted Non-restricted bank deposits and cash Non-restricted Total Purchase of treasury shares related to business combinations business to related shares of treasury Purchase 2011 Equity as of 31 December Share capital increase through conversion of debt conversion through increase capital Share Share capital increases related to business combinations: business to related increases capital Share Eiendom KS Pluss - acquisition of Selvaag AS Group - acquisition of Hansa Property - acquisition of Bo En AS taxes) (after increases capital share to attributable directly - expenses Equity as of 1 January 2010 received contribution Group taxes) (after received contribution Group 2010 Equity as of 31 December Nesttun Pluss AS/KS Pluss Nesttun (amounts in NOK 1 000) number of shares) (amounts in NOK 1 000, except (amounts in NOK 1 000) 2B AS/IS Løren Interest payments Interest respectively. NOK 69.0 million and 27.6 in 2011 2010, were activities, and as operating classified are of interest Payments of changes in equity the statement to 14: Additional information Note capital Paid-in CONSOliD equivalents Cash and cash 64 As of 31 December 2011, the share capital of the company (net of treasury shares) was NOK 136 352 530, comprising 68 176 265 fully-paid ordinary ordinary 68 176 265 fully-paid was NOK 136 352 530, comprising shares) (net of treasury of the company capital 2011, the share As of 31 December ordinary 100 fully-paid was NOK 158 792, comprising of the company capital 2010, the share of NOK 2.00. As 31 December with a par value shares in 2011. split executed a share is due to per share equal rights. Change in par value carry shares of NOK 1 587.92. All issued with a par value shares Other equity reserves and joint companies in associated with owners of transactions share of the Group’s of changes in equity consist in the statement Other reserves companies. in associated issues share from of expenses share were In 2010, the main transactions ventures. (NCI) interests Non-controlling 2010. as of 31 December interests had no non-controlling The Group structure Ownership had 2010, the Group As of 31 December outside Norway. shareholders were of which four had 96 shareholders, 2011, the Group As of 31 December based in Norway. one shareholder, ------63 2010 (677) (164) 6 161 1 972 2 007 1 862 7 898 9 633 2 010 8 278 9 797 38 115 10 140 (1 862) (9 797) (2 540) (36 216) 2011 (197) (431) (420) (202) (628) 1 214 6 259 7 994 2 011 7 372 36 712 12 748 18 448 44 185 31 436 17 404 (7 476) (1 044) 353 976 607 315 281 370 251 370 (30 000) 3 799 971 1 791 830 (2 961 956) 31.12.2011 31.12.2010 31.12.2011 31.12.2010 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD Losses on receivables in the statement of comprehensive income of comprehensive in the statement on receivables Losses Receivables written off during the year as uncollectible off during the year written Receivables Not overdue doubtful debts for in allowance Movement Overdue 1-100 days Overdue > 100 days Overdue receivables trade Gross doubtful debts* for allowance Total receivables Net trade Current assets Current and subsidiaries on disposal of businesses Gains (losses) consideration Total Liabilities Associated companies and joint ventures companies Associated Other non-current assets Other non-current assets Current Liabilities interests Non-controlling consideration Total Analysis of trade receivables overdue at the end of the reporting period at the end of reporting overdue receivables of trade Analysis on receivables Losses Cash proceeds related to disposals of businesses and subsidiaries disposals of businesses to related Cash proceeds Cash in subsidiaries disposed of acquired and subsidiaries, net of cash acquisitions of businesses for Payments Cash payments related to acquisitions to Cash payments related Cash in subsidiaries acquired (amounts in NOK 1 000) acquired and subsidiaries, net of cash acquisitions of businesses for Payments (amounts in NOK 1 000) Disposals in 2011 consist of Selvaaghus AB. In addition, cash proceeds in 2011 include payment from disposal of businesses recognised in previous in previous recognised disposal of businesses in 2011 include payment from proceeds AB. In addition, cash of Selvaaghus Disposals in 2011 consist years. transactions non-cash Significant In 2010, the disposal of ownership shares. of new issue comprise and subsidiaries largely the acquisitions of businesses for In 2011, consideration liability an existing against of NOK 58.8 million was settled a consideration Sandvika Boligutvikling AS/KS for companies in the associated interests additional information. 17 for See note the acquirers. towards agent estate real 6. In 2010, several Eiendom KS and Bo En AS, see note Pluss AS, Selvaag Group of Hansa Property Acquisitions in 2011 consist Group. in the Selvaag companies from from acquired were companies and subsidiaries Disposal of businesses and subsidiaries: disposal of businesses of financial position from statement on the consolidated the effects shows below The table * Additions related to business combinations are NOK 10,455. are combinations business to * Additions related flows of cash the statement to 13: Additional information Note and subsidiaries Acquisitions of businesses and subsidiaries: acquisitions of businesses of financial position from statement on the consolidated the effects shows below The table

A 43 ------2010 2010 1 046 1 893 13 900 611 063 614 001 614 001 627 901 627 901 NIDR +1.35pp NIDR +1.35pp NIBOR 3m + 3.50pp NIBOR 3m + 3.50pp ------* ** Not Not date rate Interest date rate Interest 2011 2011 34 457 22 000 166 130 Maturity Maturity specified 2 341 843 1 001 498 1 189 628 2 376 300 3 565 928 Cur- Cur- rency rency 2010 2010 13 900 NOK 31.12.2011 NIBOR 3m + 1.75pp 22 000 NOK 31.12.2012 NIBOR 3m + 2.00pp 76 295 NOK 2012 - 2015 - 614 001 NOK 166 130 NOK 31.12.2012 191 500 195 000 NOK 221 721 NOK 31.12.2013 186 203 NOK 19.11.2015 NIBOR 3m + 1.70pp 146 826 NOK 31.12.2012 NIBOR 3m + 1.50pp 178 542 NOK 30.06.2014 NIBOR 3m + 2.00pp 115 854 NOK 31.12.2013 NIBOR 3m + 1.65pp NOK 30.09.2013 NIBOR 3m + 1.65pp 273 093 31.12.2012 NIBOR 3m + 1.50pp 360 894 NOK NIBOR 3m + 1.95pp NOK 2012 - 2013 150 627 - 2013 - 2017 - - 2013 - 2022 - 546 150 484 000 NOK NOK 01.07.2016 01.12.2012 NIBOR 3m + 2.25pp 627 901 3 565 928 Selvaag Gruppen Selvaag DNB Loan Bond issueLand loanLand loan Obligasjonseiere loanConstruction DNB/Handelsbanken DNB/Handelsbanken loanConstruction Storebrand DNB/Handelsbanken loanConstruction DNB loanConstruction SR Bank Other loans - Loan instrument loanProperty Lender Cash pool Group Selvaag DNB Loan instrumentLand loan Lender Equity Bridge DNB DNB D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate

(amounts in NOK 1 000) (amounts in NOK 1 000) (amounts in NOK 1 000) participates. no longer in which the Group Group within the Selvaag pool agreement a cash to was related The 2010 bank overdraft Total bank overdraft Total Selvaag Hus AS Selvaag Selvaag Pluss Service AS Service Pluss Selvaag Selvaag Pluss AS Pluss Selvaag Selvaag Bolig AS Selvaag Other current liabilities Other current Total current interest-bearing liabilities at amortised cost interest-bearing current Total Other non-current liabilities Other non-current liabilities at amortised cost interest-bearing non-current Total Non-current liabilities Non-current Bank loans Total interest-bearing liabilities interest-bearing Total Total bank borrowings at amortised cost bank borrowings Total Selvaag Bolig ASA Selvaag Company Company Company Total interest-bearing liabilites at amortised cost liabilites interest-bearing Total Bond issue pool) cash Group (Selvaag Bank overdrafts Current liabilities Current Bank loans Selvaag Bolig ASA Selvaag Skårer Bolig AS Skårer 2 B AS Løren Bolig Kornmoenga ASSelvaag 5 AS Bolig Løren Selvaag KS Pluss Nesttun Lervik Brygge AS loan Construction DNB/Handelsbanken Oslo in Greater Other companies Oslo in Greater Other companies of Norway in the rest Other companies Land loan Land loan of Norway in the rest Other companies loan Construction loan Construction DNB/Storebrand SR Bank DNB/Handelsbanken/Storebrand DNB/SR Bank 251 093 NOK 2013 - 2015 - Selvaag Bolig Lillohøyden AS Bolig Lillohøyden Selvaag Other companies Selvaag Bolig AS Selvaag Bolig ASA Selvaag Selvaag Bolig ASA Selvaag (amounts in NOK 1 000) Bolig AS Selvaag During August 2011, liabilities related to the Group’s cash pool were refinanced and replaced with new loans in DNB. The remaining NOK 165 million loans in DNB. The with new replaced and refinanced pool were cash the Group’s to 2011, liabilities related During August of a share in the case shares this debt into convert to Gruppen AS is entitled Gruppen AS. Selvaag Selvaag liabilities to current into converted were with subsequent initial public offering. issue CONSOliD liabilities 16: Interest-bearing Note liabilities of interest-bearing Specification companies Group to of bank overdraft Allocation 66 65 100 2 010 (16 323) (163 230) (163 230) 2 011 (0.15) (0.15) (4 694) 31 097 944 5.3% 5.3% 4.7% 4.5% 4.0% 1.7% 1.7% 1.2% 1.1% 1.0% 0.8% 0.8% 0.6% 0.5% 0.5% 0.5% 0.4% 0.4% 0.4% 4.0% 100% 100% 60.5% 96.0% 100.0% 100 100 813 318 753 238 710 033 534 501 522 829 383 225 353 359 351 449 340 924 278 089 261 960 254 507 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS 3 604 856 3 604 856 3 235 517 3 058 938 2 741 388 1 181 968 1 181 968 2 733 953 41 285 920 65 452 843 68 186 796 ate Ordinary sharesOrdinary % share voting Ownership/ Ordinary shares shares Ordinary % share voting Ownership/ CONSOliD Weighted average number of shares outstanding during the period outstanding number of shares average Weighted Basic earnings per share in NOK Basic earnings per share Diluted earnings per share in NOK earnings per share Diluted Profit (loss) for the period attributable to shareholders of the Company in NOK 1 000 to shareholders for the period attributable (loss) Profit Ferd Eiendomsinvest AS Eiendomsinvest Ferd AS Havfonn Skips AS Tudor IKM Eiendom AS Livsforsikring Storebrand Svithun Finans AS TS Eiendom AS AS Invest Toluma Eiendom AS Veidekke AS Rotac Lema AS MP Pensjon SEB Enskilda ASA AS Wingana AS Hustadlitt AS Megaron AS Jasto Pensjon Statoil Leif Hubert Eiendom shareholders 20 largest Total Selvaag Gruppen AS Selvaag Shareholder Shareholder Selvaag Gruppen AS Selvaag shares ordinary Total Other shareholders (including treasury shares) (including treasury Other shareholders Total ordinary shares ordinary Total The 20 largest shareholders as of 31 Desember 2011 were as follows: as of 31 Desember 2011 were shareholders The 20 largest as of 31 Desember 2010 was follows: shareholder The sole 2010 and years company during the options in the or share held no shares Officer and the Chief Executive of directors of the board The members 2011. 15: Earnings per share Note no diluting are There in issue. number of shares average weighted for the period by (loss) by dividing the profit calculated are Earnings per share 2011 and 2010. in the years capital the share to related effects

A 44 - - - - - 43 359 - - 43 359 - 222 587 188 130 34 457 3 758 260 1 063 430 1 866 726 784 745 3 980 847 1 251 560 1 901 183 784 745 16 Note per 31.12.2011 Total < 1 year 1-3 years 3-6 years 6-10 years > 10 years Not specified D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate The CEO and management group identify and evaluate financial risks on an on-going basis. identify and evaluate The CEO and management group years several span over often type. Projects depending on contract varies of goods and services with the prices of risk associated The degree exposure. currency foreign to hedge policy is not subsidiaries. The current through currency local in financed outside Norway are Projects a 10% depo- agents. Normally, estate professional through place take sales since be limited to is considered of property sale to risk related Credit low. to be with financial assets risk associated credit assesses the Group Based on the above, and ’cash receivables’, and non-current ’other current receivables’, ’trade the classes risk comprises credit to maximum exposure The Group’s of financial liabilities. The majority current maturity analysis for and other payables’ 17 ’Trade and note liabilities’ 16 ’Interest-bearing See note Total interest-bearing liabilities interest-bearing Total Other interest-bearing liabilitiesOther interest-bearing 16 (amounts in NOK 1 000) Bank loans* CONSOliD 68

Managing capital and financial risk management 18: Managing capital Note 18.1 Financial risk factors risk and risk), credit risk and price rate risk, interest risk (including currency of financial risks: market a variety it to activities expose The Group’s financial performance. on the Group’s effects adverse minimise potential risk management activities seek to overall liquidity risk. The Group’s risk (a) Market risk exchange (i) Foreign investments has certain The Group and properties. projects development on Norwegian focusing developer, estate real is a Norwegian The company degree. a limited to risk, however translation currency foreign to exposed are whose net assets operations, in foreign risk (ii) Price has invested addition, the Group in Norway.In geographically exposed is mainly risk, and the Group price property to exposed is generally The Group The prices. and material costs construction to risks related to is also exposed The Group in Sweden. projects future in Spain and two in one project The Group’s residential properties. for the meter per square income of sales vary depending on the development will of each project margin profit been signed. have contracts until construction is limited hedged as presales risk is partly price to exposure construction for the prices based on fixed are contracts period. Most during the construction may increase and salary expenses prices and material increases. price clauses allowing index contain contracts period, but certain risk rate (iii) Interest rate interest to the Group expose rates at variable issued Borrowings borrowings. term long from risk arises largely rate interest The Group’s in progress, projects property) as the projects (inventory development as part of cost interest capitalises Group The cash flows. fluctuations affecting borrowings. of the Group’s details liabilities for 16 Interest-bearing note to Refer Costs. with IAS 23 Borrowing accordance risk (b) Credit of sales regarding agreements into enters companies risk when Group counterparty to is exposed The Group level. risk is managed on a Group Credit companies. associated to such as loans receivables, outstanding risk also arises from Credit property. residential of title. upon transfer is settled The balance a contract. upon entering home buyers from sit is required 2010 and 2011. as of 31 December amounts of these classes carrying 18.3 for See note equivalents’. and cash (c) Liquidity risk to meet its funding and capacity reasonable well as securing a obligations as foreseeable to meet its sufficient liquidity maintain aims to The Group and borrowing banking facilities reserves, cash adequate manages its liquidity risk by maintaining The Group liquidity management requirements. forecasts The flows. and actual cash forecast monitoring and by continuously pool facility, cash Bolig Group the Selvaag through mainly facilities, compliance. covenant financing plans and the Group’s consideration into take within 6 months. repayable bearing liabilities are non-interest liabilities (nominal values) the Group’s for Maturity schedule liabilities Interest-bearing ------67 14 151 307 2010 2010 2010 2010 2010 9 076 9 090 5 176 9 090 13 900 10 879 14 219 22 034 16 206 38 240 611 100 614 001 356 291 628 527 31.12.2010 - - - 2011 2011 2011 2011 2011 1 293 76 197 78 141 148 682 148 682 290 679 898 949 382 909 266 778 546 150 113 273 109 162 148 682 155 630 264 792 2 742 882 3 925 669 1 067 190 1 189 628 2 376 300 31.12.2011 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD Net trade payables Net trade Repayable 0-3 months after the end of the reporting period the end of reporting 0-3 months after Repayable period the end of reporting 3-6 months after Repayable Total Bank loans - financial institutions Bank loans Gruppen AS - Selvaag Bank loans Land Trade payables Trade Current non-interest-bearing liabilities payable to the Selvaag Group the Selvaag to liabilities payable non-interest-bearing Current expenses Accrued financial liabilities * Other current financial liabilities non-interest-bearing other current Total Maturity Repayable within 0-6 months after period-end within 0-6 months after Repayable period-end within 6-12 months after Repayable cash pool) (Group Unspecified maturity schedule Period loans Secured as security on bank loans of land pledged Carrying value Period To be repaid during 2013 be repaid To during 2014 be repaid To To be repaid during 2015 be repaid To during 2016 be repaid To during 2017 or later be repaid To Total Other current liabilities Other current (amounts in NOK 1 000) liabilities non-interest-bearing other current Total Trade payables Trade at 31 December: maturity structure the following have payables trade The Group’s be in Bo En AS. Of this amount, NOK 40 million can shareholders former to settlement liabilities include NOK 60 million in deferred * Other current and subsequent initial public offering. issue of a share in the event request, at the Company’s paid in shares Current interest-bearing liabilities interest-bearing Current period. the reporting includes liabilities maturing within 12 months subsequent to below The table loans: current for Maturity schedule etc. and guarantees Collateral and other payables 17: Trade Note * According to plan, this loan will be paid in part or fully in the case of a share issue with subsequent initial public offering, with the option to post- with the option to with subsequent initial public offering, issue of a share in the case will be paid in part or fully plan, this loan to * According any remaining convert the right to will receive If this option is used, the lender request. 30 June 2014 at the Company’s to pone the maturity date in the company. shares into balance and subsequent initial public offering, issue of a share in the case Company shares into be converted but can has no set maturity date, ** The loan 2012. planned for liabilites interest-bearing Non-current loans: non-current for Maturity schedule

A 45 - - - - 150 150 (915) (401) 2010 8 278 9 090 (6 140) (9 773) 61 436 16 206 13 525 25 296 (14 957) (22 012) (10 174) 240 027 627 901 309 741 627 901 100 100 (610) (268) 2011 10 948 (9 972) (4 093) (6 515) 10 948 (6 783) 36 784 31 436 35 500 58 276 28 304 (14 675) 148 682 155 630 161 996 395 207 332 616 2 376 300 1 189 628 3 565 928 50 50 (305) (134) (4 986) (2 047) (3 258) (7 337) (3 391) 12 17 16 16 17 Note D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Other non-current assets Other non-current receivables Trade Other current financial receivables financial Other current financial assets and non-current and other current receivables trade Total Trade receivables and other current and non-current financial assets and non-current and other current receivables Trade and joint ventures companies associated Loans to Cash and cash equivalents Cash and cash equivalents Cash and cash 2011 in basis points level interest to Adjustment Trade payables and other non-interest-bearing financial liabilities and other non-interest-bearing payables Trade liabilities non-interest-bearing Other non-current payables Trade Other current non-interest-bearing financial liabilities non-interest-bearing Other current Effect - Bank loans Effect Effect - Bank overdraft to the Selvaag Group the Selvaag to - Bank overdraft Effect (in NOK 1 000) flow on cash Effect Total trade payables and other non-interest-bearing financial liabilities and other non-interest-bearing payables trade Total Effect - Other loans Effect 2010 in basis points level interest to Adjustment Interest-bearing liabilities Interest-bearing liabilities interest-bearing Non-current Effect - Bank loans Effect Group Selvaag to - Bank overdraft Effect (in NOK 1 000) flow on cash Effect Current interest-bearing liabilities interest-bearing Current Total interest-bearing liabilities interest-bearing Total financial liabilities non-interest-bearing Other current (amounts in NOK 1 000) swap) rate (interest Derivatives CONSOliD 70

Classes of financial assets and liabilities of financial assets Classes Sensitivity analysis risk rate Interest are The effects by 50, 100 and 150 basis points respectively. rates in interest or increase a decrease sensitivity to the Group’s details table The above amounts during the period. outstanding basis and based on the average on a pre-tax calculated risk exchange Foreign immaterial cause 2011 would risk. Fluctuations in the amount of +/- 5% as 31 December currency foreign to exposed degree a limited is to The Group amounts. with immaterial of changes in equity only statement consolidated the and will affect loss, and profit the Group’s changes to ------69 9 090 8 278 16 206 61 436 13 525 83 239 627 901 240 027 653 197 653 197 323 266 240 027 Loans and receivables at amortised cost ------Financial liabilities ------2010 ------profit and loss and profit profit and loss and profit Fair value through through value Fair Fair value through through value Fair ------28 304 58 276 31 436 36 784 35 500 72 284 155 630 148 682 395 207 484 919 557 203 Loans and receivables at amortised cost - - - - - Financial liabilities 2011 - 2 404 604 ------1 189 628 - 2 376 300 - - - - 10 948 10 948 10 948 1 493 940 3 898 544 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS - 28 304 ate profit and loss and profit profit and loss and profit Fair value through through value Fair Fair value through through value Fair 17 16 12 Note 1 293 1 293 CONSOliD 28 304 78 141 78 141 76 197 76 197 109 162 109 162 148 682 148 682 441 778 413 474 28 304 17 17 17 17 18.3 Note per 31.12.2011 Total < 1 year 1-3 years 3-6 years 6-10 years > 10 years Not specified In achieving this objective, the Group focuses on the profitability of the various projects. In order to optimise the capital structure, management structure, capital to optimise the In order various projects. of the on the profitability focuses the Group this objective, In achieving as net debt is calculated The gearing ratio a priority. although this is not currently based on the gearing level, capital may also monitor The Group Total non-interest-bearing liabilities non-interest-bearing Total Other non-current non-interest- Other non-current bearing liabilities Other current liabilities Other current Financial current liabilites Financial current Financial liabilites Other current financial liabilitiesOther current 17 Other current non-interest-bearing financial liabilities non-interest-bearing Other current Trade payables Trade Other non-current non-interest-bearing liabilities non-interest-bearing Other non-current liabilites Financial non-current liabilities interest-bearing Current Accrued expenses Accrued Cash and cash equivalents Cash and cash assets Financial current Financial assets Financial liabilities liabilities interest-bearing Non-current Current non-interest-bearing liabili- non-interest-bearing Current Group the Selvaag to ties payable Financial non-current assets Financial non-current receivables Trade receivables financial Other current Trade payables Trade (amounts in NOK 1 000) (amounts in NOK 1 000) Financial assets and joint ventures companies associated Loans to assets Other non-current

Non-interest-bearing liabilities Non-interest-bearing payments. interest * Including estimated risk management 18.2 Capital providing while as going concerns continue to the ability of entities in Group ensure is to when managing its capital objective The Group’s structure. capital an optimal and maintaining stakeholders for other and benefits shareholders for returns in which pool arrangement a cash funded through mainly are requirements on an on-going basis. Capital funding sources all available evaluates projects. of new start-up to related In addition, the Company has a facility participates. Bolig Group entities in the Selvaag selected is capital Total equivalents. and cash cash liabilities less interest-bearing and non-current as current Net debt is calculated capital. divided by total as this liabilities is disclosed interest-bearing of total as a proportion of building loans the share equity plus net debt. Additionally, as total calculated acitvity level. the company’s to related information provides and liabilites 18.3 Financial assets assets and liabilities of financial Classification

A 46 57 268 708 2010 2010 (308) (398) 9 598 7 774 3 847 (2 530) (2 083) (1 624) 545.2% (13 793) (10 146) (13 793) ------8 913 8 913 2011 2011 - - 2010 3 847 8 113 1 671 6 373 2 747 23 265 18 784 23 265 (6 275) (4 944) (1 532) (80.3%) (28 975) (42 717) (13 934) 4 494 2 894 1 658 6 290 3 847 10 004 19 050 Liability Forpliktelse - 20 273 - 211 377 2011 5 080 - 9 099 - Asset Asset Liability 11 502 21 451 - - 188 782 - 226 815 231 650 (13 934) - D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Total temporary differences temporary Total of financial position (liabilities) in the statement assets tax Net deferred Profit (loss) before income taxes income before (loss) Profit Net deferred tax assets (liabilities) as of 1 January assets tax Net deferred Acquisition of subsidiaries Net deferred tax assets (liabilities) as of 31 December assets tax Net deferred Non-current assets Non-current Inventory property Inventory Receivables liabilities Current liabilities Non-current forward carried Losses assets tax deferred Unrecognised Estimated income taxes according to nominal tax rate (28%) rate nominal tax to according taxes income Estimated Recognised in the statement of comprehensive income of comprehensive in the statement Recognised Recognised directly in the statement of changes in equity in the statement directly Recognised Effective income tax rate tax income Effective Other non-deductible expenses Other non-deductible Taxable income related to the exemption method, in accordance with the method, in accordance the exemption to related income Taxable Act section 2-38 Taxation Norwegian Income tax income (expense) income tax Income Other non-taxable income Other non-taxable Unrecognised deferred tax assets tax deferred Unrecognised and joint ventures companies associated from of income Share (amounts in NOK 1 000) Other items (amounts in NOK 1 000) (amounts in NOK 1 000) CONSOliD 72

Reconciliation from nominal to effective income tax rate: tax income effective nominal to from Reconciliation and joint ventures companies associated from of income Share basis and therefore tax on an after is recognised partnerships not limited which are and joint ventures companies associated from of income Share due in 2011 is primarily rate and nominal tax rate tax effective between 24. The difference see note expense, tax income does not impact the Group’s companies. associated from results negative due to is primarily 2010, the difference base. For the tax from acquisitions excluded step gains from to and liabilities as of 31 December assets tax Deferred future tax benefit through related realisation of the that the extent to the of financial position included in the statement are assets tax Deferred to related is tax assets deferred NOK 7.6 million of unrecognised forward. carried losses on dates expiration no are There is probable. profits taxable company. in an associated on receivables loss for provisions (liabilities) is as follows: assets tax of deferred The net movement - - - - 71 2010 2010

(13 793) (13 793) - 2011 2011 4 952 28 217 23 265 (4 952) (4 952) D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD

prices). from (i.e. derived indirectly

Level 1: Level financial instruments identical for markets in active (unadjusted) prices Quoted 2: Level or (i.e. as prices) or liabilities, either directly assets for observable 1 that are included within Level prices Inputs other than quoted 3: Level inputs). (unobservable data market not based on observable or liabilities that are assets Inputs for Income taxes in profit (loss) in profit taxes Income Current income taxes payable taxes income Current Changes in deferred taxes Changes in deferred the period for - expense payable taxes Income (amounts in NOK 1 000) (amounts in NOK 1 000) given contribution on Group taxes Income of financial position in the statement payable taxes income Current tax of income countries. An allocation amounts arising in other insignificant Norway with only to related mainly activities are business The Group’s necessary. is thus not considered countries between expense of financial instruments values 18.4 Fair values fair estimating for Principles are instruments the financial statements, financial consolidated in the recognised that are of the financial instruments Based on the characteristics where prices market based on available are financial instruments of the Group’s values fair The estimated as described below. classes into grouped described below. are per class methodologies and the valuation applicable hierarchy value Fair value of fair of the inputs used in measuring the significance that reflects hierarchy value fair using the following values fair measures The Group financial instruments. financial assets and non-current and other current receivables Trade to be for bad debt, is assessed for allowance the nominal amount, adjusted financial assets, and non current and other current receivables trade For of financial instruments. this class for be immaterial to is considered of not discounting The effect value. of fair approximation a reasonable equivalents Cash and cash to the nominal amount. to be equal is assessed of financial instruments this class for value The fair financial liabilities and other non-interest-bearing payables Trade fair of approximation reasonable to be a financial liabilities, the nominal amount is assessed and other non-interest-bearing payables trade For of financial instruments. this class for be immaterial to is considered of not discounting The effect value. liabilities Interest-bearing interest market at the current cash flows contractual the future by discounting purposes is estimated for disclosure of financial liabilities value The fair similar financial instruments. for the Group to that is available rate Derivatives rates currency foreign based on the applicable financial institutions external from retrieved are contracts forward currency of foreign values Fair based financial institutions external from retrieved are swap contracts rate of interest values period. Fair at the end of reporting in the market 2 inputs. The carrying using level measured are period. The derivatives at the end of reporting in the market rates interest on the applicable the carrying showing and a table values, of fair approximation be a reasonable to assessed are and liabilities of all classes the assets amounts for necessary. is not considered per class values amounts and fair taxes 19: Income Note income: tax (expense) of income Specification payable: taxes income of current Specification

A 47 - 45 39 325 315 724 650 2010 1 155 1 309 3 889 1 466 1 225 2 192 1 355 1 275 3 383 2 382 1 408 Total Total Total Total 10 357 11 332 3 6 8 6 6 6 6 - 18 54 52 10 94 81 Other Other 42 382 190 525 2011 3 329 2 190 - 50 52 46 47 47 47 52 49 46 44 47 236 291 - 350 400 300 200 700 300 200 1 474 1 500 1 000 1 000 4 400 3 024

752 250 355 2 315 1 785 5 627 7 936 1 413 1 439 1 328 Salary Bonus Pension Salary Bonus Pension Vice president portfolio management portfolio president Vice management portfolio president Vice Position Position President and CEO President Vice president portfolio management portfolio president Vice Vice president property investment property president Vice 970 CFO Vice president property investment property president Vice 1 020 Position Position President and CEO President CFO Vice president portfolio management portfolio president Vice D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS 1 ate 2 elements: following of the compensation, including one or more total package signifies the purposes of these guidelines, remuneration For compensation and payment payments, other financial and may include termination resignation, to related compensation pay comprises Severance base salary. package shall be the fixed of a remuneration The primary element control. outside management’s circumstances external due to compensation unreasonable avoid be designed as to packages must The remuneration contributions pay or other benefits such as pension variable base salary, any package, including fixed in a remuneration The individual elements owned subsidiaries. positions within wholly for Board compensation specific management shall not receive Individuals in the Group’s 60% exceed pay (bonus) may not variable For the management group, criteria. and measurable definable be based on objective, pay must Variable pay variable for which period forth a distinct and set influence management to for possible which are shall be based on circumstances The criteria comprehensible. and easily be transparent pay must variable for A system 2011 Anne Grethe StorakerAnne Grethe and marketing sales president Vice 939 Statutory audit services to the parent company the parent to audit services Statutory Baard Schumann Baard Sverre Molvik Sverre Statutory audit services to subsidiaries to audit services Statutory Petter Cedell Petter Other assurance services Other assurance Haavard Rønning Haavard Total - Group management - Group Total Anne Grethe StorakerAnne Grethe and marketing sales president Vice 997 Tax advisory services Tax Total fees paid to the auditor (exclusive of VAT) (exclusive the auditor paid to fees Total Other non-audit services Halvard Kverne Halvard Petter Cedell Petter Total - Group management - Group Total 2010 Baard Schumann Baard Haavard Rønning Haavard Halvard Kverne Halvard Sverre Molvik Sverre (amounts in NOK 1 000) From February 2010 to June 2011, Halvard Kverne has been engaged part-time as Project Director in Hansa Property Group AS. Group in Hansa Property Director has been engaged part-time as Project Kverne June 2011, Halvard 2010 to February From 2010. Bolig ASA on 1 November in Selvaag started Molvik Sverre 1 2 Bolig ASA in Selvaag personnel leading to of salary and other remuneration on determination statement The Board’s at the vote a consultative for management will be presented of the Group’s members to of salary and other remuneration statement The following meeting in April 2012. general ordinary (CEO) and other senior management. officer includes the chief executive Leading personnel termination benefits, fringe benefits and other contribution, pay (including bonus), and other benefits pension variable base salary, fixed benefits-in-kind). in kind. packages of remuneration determination for Main principles similar companies. to compared but not leading Bolig ASA should be competitive, management in Selvaag to Remuneration of each manager’s value of the total an overview maintain must The Board compensation. of total in the context be considered must and severance, the Company or in other ways for consequences adverse packages do not have remuneration that management’s and ensure compensation agreed reputation. the Company’s to detrimental are pay Variable principles: pay shall be based on the following Any variable of the company. pay and the objectives variable the goals determining between exist must connections Clear for the CEO). base salary (67% of fixed will be determined. CONSOliD to management (amounts in NOK 1 000): remuneration of Specification to the auditor: fees paid of Specification management remuneration Guidelines for 74 ------73 2010 1 262 25 454 92 555 84 364 93 368 84 364 84 364 (7 701) (2 565) 118 009 31.12.10 ------2011 92 112 84 364 92 112 92 112 92 112 (1 262) (83 102) 31.12.2011 31.12.2010 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD Total contingent liabilities contingent Total Provision for contractual infrastructure contractual for Provision Share issue commitment issue Share Capital not called up - limited partnerships up - limited not called Capital Total non-current provisions for other liabilities for provisions non-current Total Other non-current provisions Other non-current infrastructure contractual for Provision As of 1 January Total current provisions for other liabilities for provisions current Total Other current provisions Other current Obligations arising during the year and effects of changes in estimates and effects Obligations arising during the year Amounts utilised Reclassification after business combinations business after Reclassification As of 31 December Obligations in acquired companies Obligations in acquired (amounts in NOK 1 000) (amounts in NOK 1 000) of pension obligations Reclassification (amounts in NOK 1 000) The provision for contractual infrastructure is related to infrastructure and construction of parking areas in Lørenskog. The provision for 2010 for The provision in Lørenskog. of parking areas and construction infrastructure to is related infrastructure contractual for The provision now which are companies joint venture by the Hansa Selvaag development of land held for demolition and preparation to related was primarily subsidiaries. consolidated Note 20: Provisions Note during the period Development and develop- requirements of regulatory as a consequence etc. build infrastructure obligations to have projects development Companies with active as provisions. separately recognised not and are various projects value of the carrying in the reflected ment plans. These obligations are 21: Contingent liabilities and guarantees Note and joint ventures: companies in associated interests ownership liabilities due to contingent the following is subject to The Group requirements legal fulfills of NOK 113 million during 2011, and 32 2010. The Group guarantees personal has given The Group liabilities included Corresponding and other guarantees. bank guarantees purchased to Act section 12) with respect Housing Construction to (pursuant amounts. not included in the above of financial position are in the statement 16. rights, see note on conversion information For the to up is related not called AS. The capital Group in Hansa Property interest ownership to in 2010 was related commitment issue The share (KS). companies partnership in limited ownership Group’s and auditors of directors management, board to and fees 22: Remuneration Note Companies with the Public Limited In accordance in the Group. employees by leading performed work for is valid of remuneration This statement the CEO and other senior to of salary and other remuneration on determination a statement shall prepare of Directors Act section 6-16a, the Board the CEO and Management Group: to of remuneration the determination regarding principles has the following management. The Group remuneration and total the CEO and management should appear competitive, to salary and other remuneration of Directors, In the opinion of Board conditional on fulfilment to basic salary, as a bonus in addition remuneration receive responsibilities. The CEO may of their extent the should reflect of the ordinary members are this type of position. All managers for additional remuneration as ordinary as well criteria, performance of certain or the to the shares connected for the CEO or other managers arrangement remuneration has no specific The Group pension scheme of the Group. salary. 12 months’ the CEO will receive of dismissal, including options. In the event price, of the share development options in the company. or share no shares during 2011 and 2010, owns remuneration has not received of Directors The Board

A 48 2010 33.3% 37.0% 27.0% 30.0% 2011 50.0% 50.0% 33.3% 37.0% 27.0% 30.0% 66.0% 66.0% 50.0% 50.0% 50.0% 50.0% 50.0% Ownership and voting power power and voting Ownership Spain Norway Norway Norway Norway Norway Norway Norway Norway Norway Norway Norway Sweden Sweden 2008 2008 2008 2008 2011 2011 2011 2011 2011 2011 2011 2011 2011 Year of acquisition Year office Registered D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate

(amounts in NOK 1 000) Company Sandvika Boligutvikling KS Residential S.L. Nordic Sandvika Boligutvikling AS 1 KS Lørenplatået AS 1 Komplementar Lørenplatået AS Industribygg Stord Stord Industribygg Holding AS Industribygg Stord HEBO AS Bo Emmaus AS AS pluss Tangen KS Union Pluss AS Komplementar Union Pluss Sädesärlan AB Projektbolaget

CONSOliD party transactions Other related AB of Selvaaghus Sale Selvaag AB to subsidiary Selvaaghus owned in the wholly interests all ownership transfer to an agreement into entered On 4 May 2011, the Group of NOK 7.4 million. a consideration Gruppen AS, for Eiendom AS, a subsidiary of Selvaag Gruppen AS Selvaag of debt to Conversion of conversion out through was carried The increase Bolig AS was approved. of NOK 100 million in Selvaag increase capital On 24 May 2011, a share on 18 June 2011. in the Company register Gruppen AS, and was registered Selvaag debt to of property Sale in of the directors by two NOK 5 million. Sealbay AS is controlled Sealbay AS for to in Skøyen property sold the ”Ekely” In June 2011 the group 2011). in September the Board (left Selvaag and Gunnar Frederik Bolig AS, Olav Hindahl Selvaag Selvaag parties with related combinations Business in the the owners to directed placement out a private AS and carried Group with Hansa Property Bolig ASA merged 2011, Selvaag On 24 August 37.5% of the Bolig ASA assumed in Bo En AS, Selvaag with the other shareholders Eiendom KS. In agreement Pluss Selvaag partnership limited can on these transactions information 2011. Further on 25 November was completed these shares for of control The transfer in the company. shares 6. in note be found companies associated to contributions Capital AS and NOK 64.7 million to Group Hansa Property of NOK 25.5 million to companies associated to contributions capital gave During 2011, the Group 24. note to refer information, more Eiendom KS. For Pluss Selvaag companies Hansa Selvaag to obligations related for Provision of plots demolition of buildings and renovation to obligations related of NOK 83.1 million for held a provision 2010, the Group As of 31 December as not regarded during 2011 and are consolidated were These companies companies. joint venture with six Hansa Selvaag based on an agreement further information. 6 and 20 for note to refer 2011. Please parties as of 31 December related Eiendomsoppgjør AS and Selvaag Boligutleie Boligmegling AS, Selvaag Acquisition of Selvaag Eiendomsoppgjør AS from AS, and Selvaag Boligutleie Boligmegling AS, Selvaag agencies, Selvaag estate three acquired During 2010, the Group of NOK 9.8 million. consideration a total Gruppen for Selvaag management. of key of compensation disclosure 22 for pool and note cash Group of the Selvaag disclosure 16 for See note and joint ventures companies in associated 24: Investments Note 76 75 812 351 719 2010 2010 (130) 2 748 6 766 3 239 1 479 7 684 64 160 17 686 59 799 (2 120) 201 956 (10 625) (44 450) (25 218) - - - 976 284 704 2011 2011 2 400 1 677 5 310 35 705 23 750 41 848 (9 111) (18 164) (39 479) (157 735) (166 212)

D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate CONSOliD Severance pay should not exceed 12 months’ fixed base salary in addition to any compensation during the period of notice. compensation during the period of notice. to any base salary in addition fixed 12 months’ pay should not exceed Severance or acts irregularities pay is provided, or if during the period in which severance exist, dismissal for pay should be withheld if conditions Severance

Sales of goods and services Sales company) Gruppen AS (parent Selvaag Receivables company) Gruppen AS (parent Selvaag Joint ventures* companies* Associated company) parties (including subsidiaries of parent Other related Associated companies Associated Joint ventures Other related parties (including subsidiaries of parent company) parties (including subsidiaries of parent Other related of goods and services Purchase company) Gruppen AS (parent Selvaag company) parties (including subsidiaries of parent Other related Liabilities company) Gruppen AS (parent Selvaag Financial income company) Gruppen AS (parent Selvaag Joint ventures Associated companies Associated Other related parties (including subsidiaries of parent company) parties (including subsidiaries of parent Other related Financial expenses company) Gruppen AS (parent Selvaag (amounts in NOK 1 000) (amounts in NOK 1 000) company) parties (including subsidiaries of parent Other related

Pension contributions Pension those of other employees. pension should be equal to management’s determining for The terms pay Severance forth by the as set dismissal against the protection waives officer which the chief executive through agreement of a pre-established In the case payments should not be utilised in the Severance be reached. can severance regarding an agreement act (“Arbeidsmiljøloven”), environment working by special circumstances. if warranted except resignation, of voluntary event violation of the law. for damages or the individual being indicted in liabilities for that may result discovered are of negligence party transactions 23: Related Note been the Company, have parties to related Bolig ASA and its subsidiaries, which are Selvaag between liabilities and transactions Receivables, parties are related and other the Group between transactions of significant Details in this note. not disclosed and are on consolidation eliminated below. disclosed parties: with related transactions the following into entities entered Group During the year, as of 31 December: outstanding pool, were cash Group the Selvaag and liabilities, excluding receivables The following joint venture the Hansa Selvaag to related loans of subordinated consist in 2010 mainly companies and associated joint ventures from * Receivables AS. Group and Hansa Property companies liabilities, as interest-bearing current into pool was converted cash Group of NOK 170 million in the Selvaag balance account In 2011, a net negative Gruppen AS. to Selvaag - liabilities above table in the reflected

A 49 2010 183 809 (145 138) 3 594 060 2 412 962 1 181 098 2011 79 983 878 497 606 564 503 231 271 933 D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate Total profit (loss) for the year for the (loss) profit Total (amounts in NOK 1 000) assets Total liabilities Total Net assets revenues Total CONSOliD as of 31 December ventures companies and joint (100%) of associated Summarised financial information period the reporting after 25: Events Note property Nordic two to sections at Kaldnes in Tønsberg sell the business to of intent an agreement into Bolig ASA entered 2012, Selvaag In February are Næring AS. The sales sections of Vestparken sell the business to of intent an agreement into entered the Group Furthermore, companies. six months of 2012. during the first be executed to expected 78 ------77 38 44 90 449 333 238 156 377 (18) 3 843 3 843 7 034 8 370 1 106 1 141 6 831 4 314 8 065 3 577 5 177 8 519 65 339 24 161 32 207 28 870 25 270 52 414 12 062 18 697 31.12.11 31.12.10 190 614 371 452 141 707 Carrying amount Carrying amount ------(185) (500) (250) (500) 2 153 (1 215) (4 050) (2 550) (3 783) (4 288) (5 200) (2 700) (4 350) (18 718) and dividends and dividends Equity adjustments Equity adjustments - - 4 39 10 587 590 185 189 330 202 323 398 (35) (13) (88) (70) (75) (63) (18) (92) (445) (121) (175) (510) (455) (486) (149) (920) (726) (688) (334) (150) (349) (243) 8 046 1 904 1 053 82 787 75 373 (5 979) (4 007) (1 176) (9 209) (7 414) (10 238) (28 770) (44 310)

------95 123 334 152 527 136 (38) (436) (330) (285) 5 177 8 509 11 667 53 140 14 364 19 045 (5 880) (8 735) (7 995) (3 091) (4 165) (59 360) (53 434) (24 815) (28 807) (47 524) disposals of profit Share disposals of profit Share Additions/ Additions/ D FiNaNCial StateMeNtS SelvaaG BOliG GrOup SelvaaG D FiNaNCial StateMeNtS ate ------38 449 760 333 510 802 238 3 843 8 370 1 141 3 101 3 996 4 798 6 831 5 778 4 402 8 065 3 577 8 025 4 314 9 697 65 339 63 911 81 602 24 161 10 169 11 833 25 270 28 945 28 870 26 446 01.01.11 01.01.10 190 614 (181 405) 217 231 482 004 371 452 (217 982) CONSOliD Carrying amount Carrying amount 33.3% 33.3% 33.3% 33.3% 37.0% 37.0% 27.0% 27.0% 30.0% 30.0% 18.0% 18.0% 20.0% 20.0% 22.5% 22.5% 25.0% 25.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 29.7% 29.7% 66.0% 66.0% 62.5% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% Owner - Owner - ship share ship share ship share 1

(amounts in NOK 1 000) (amounts in NOK 1 000) Total Selvaag Pluss Eiendom KS Pluss Selvaag Eiendom KS Pluss Selvaag Company Company Sandvika Boligutvikling KS Sandvika Boligutvikling KS Sandvika Boligutvikling AS Sandvika Boligutvikling AS Lørenplatået 1 KS Lørenplatået 1 KS Lørenplatået Lørenplatået 1 Komplementar AS 1 Komplementar Lørenplatået AS 1 Komplementar Lørenplatået Mortensrudhøyden 2 KS Mortensrudhøyden 2 KS Mortensrudhøyden Mortensrudhøyden 2 Komplementar AS 2 Komplementar Mortensrudhøyden Mortensrudhøyden 2 Komplementar AS 2 Komplementar Mortensrudhøyden Moss Glassverk 1 KS Glassverk Moss Moss Glassverk 1 KS Glassverk Moss Moss Glassverk 1 Komplementar AS 1 Komplementar Glassverk Moss Moss Glassverk 1 Komplementar AS 1 Komplementar Glassverk Moss Selvaag Bolig Mortensrudhøyden AS Bolig Mortensrudhøyden Selvaag Selvaag Bolig Mortensrudhøyden AS Bolig Mortensrudhøyden Selvaag Selvaag Bolig Bjørnåsen Syd II AS Selvaag Selvaag Bolig Bjørnåsen Syd II AS Selvaag Selvaag Bolig Lillohøyden AS Bolig Lillohøyden Selvaag Selvaag Bolig Lillohøyden AS Bolig Lillohøyden Selvaag Selvaag Bolig Løren 2B AS Bolig Løren Selvaag Selvaag Bolig Løren 2B AS Bolig Løren Selvaag Selvaag Bolig Løren 5 AS Bolig Løren Selvaag Selvaag Bolig Løren 5 AS Bolig Løren Selvaag Selvaag Bolig Kornmoenga AS Selvaag Selvaag Bolig Kornmoenga AS Selvaag Hansa Property Group AS Group Hansa Property Hansa Property Group AS Group Hansa Property Stord Industribygg AS Industribygg Stord Other Stord Industribygg Holding AS Industribygg Stord Total Bo En AS HEBO AS Bo Emmaus AS Tangen pluss AS pluss Tangen Union Pluss KS Union Pluss Union Pluss Komplementar AS Komplementar Union Pluss Projektbolaget Sädesärlan AB Projektbolaget Nordic Residential S.L. Nordic Other Total Profits at realisation at Profits Share of income (losses) and gains (losses) on disposal from associated companies and joint ventures primarily include profits on realisation of on include profits primarily and joint ventures companies associated on disposal from and gains (losses) (losses) of income Share 1 Specifications of investments in associated companies and joint ventures: companies and joint in associated of investments Specifications acquisitions. step to related and joint ventures companies associated

A 50 . basis for We disclosures practices Norwegian comprise the 2011, and the income Norway, and for the , which comprise the cash flow for the year judgment, including the internal control as the the group. The financial of of based on our audit. based on our audit. the Financial Statements the Financial Statements the group the group December December rnal control relevant to the entity’s rnal control relevant to the entity’s statements, whether due to fraud or statements, whether due to fraud or in accordance with in accordance with and for such and for such nt and appropriate to provide a nt and appropriate to provide a Selvaag Bolig ASA Selvaag Bolig ASA is necessary to enable the preparation of is necessary to enable the preparation of ancial statements responsible for the preparation and fair responsible for the preparation and fair , changes in equity and , changes in equity and considers inte r are as adopted by EU The financial statements of of Selvaag Bolig ASA ents and plan and perform the audit to obtain reasonable ents and plan and perform the audit to obtain reasonable for the year then ended, and a summary of significant accounting for the year then ended, and a summary of significant accounting ng Director determine comprise the balance sheet as at 31 Managing Director’s Responsibility for 2011, income statement ’s report statements of the parent company Postboks 748 Sentrum, NO-0106 Oslo and the Managing Directo the parent company and the fin circumstances, but not for the purpose of expressing an opinion on the circumstances, but not for the purpose of expressing an opinion on the uditor entity’s internal control. An audit also includes evaluating the appropriateness of entity’s internal control. An audit also includes evaluating the appropriateness of December and the Managi 713 MVA, Medlem av Den norske Revisorforening the parent company al statements. The procedures selected depend on the auditor’s al statements. The procedures selected depend on the auditor’s policies used and the reasonableness of accounting estimates made by management, as policies used and the reasonableness of accounting estimates made by management, as and cash flow statement, statements that are free from material misstatement, whether due to fraud or error. statements that are free from material misstatement, whether due to fraud or error. www.pwc.no comply with ethical requirem evaluating the overall presentation of the financial statements. Annual Shareholders' Meeting elieve that the audit evidence we have obtained is sufficie then ended, and a summary of significant accounting policies and other explanatory information Accounting Act and accounting standards andpreparation and practices fair generally presentation accepted of in the financial statements of the group in accordance with conducted our audit in accordancegenerally with accepted laws, in regulations, Norway, and including auditing International standards Standards and on Auditing. Those standardsassurance require about whether the financial statements are free from materialAn misstatement. audit involves performing procedures to obtain audit evidence about the amounts and preparation and fair presentation of the financial statements in order to design audit procedures that To the Independent a Report on the Financial Statements We have audited the accompanyingfinancial financial statements statements of of statements of statement policies and other explanatory information. balance sheet at 31 then ended, and a summary of significant accounting policies andThe other Board explanatory of information Directors and the The Board of Directors presentation of the financial Accounting Act and accounting standards andpreparation and practices fair generally presentation accepted of in theInternational financial Financial statements Reporting of Standards the groupBoard in of accordance Directors with financial Auditor’s Responsibility Our responsibility is to expressconducted an our opinion audit on in these accordance financialgenerally with statements accepted laws, in regulations, Norway, and including auditing Internationalthat standards Standards we and on Auditing. Those standardsassurance require about whether the financial statements are free from materialAn misstatement. audit involves performing proceduresin to the obtain audit financi evidence aboutassessment the of amounts the and risks oferror. material In misstatement making of those the risk financial preparation assessments, and the fair auditor presentation of theare financial appropriate statements in in the order toeffectiveness design of audit the procedures that accounting well as We b our audit opinion. PricewaterhouseCoopers AS, T: 02316, Org.no.: 987 009 auDitOr’S repOrt auDitOr’S 80

A 51 81 (2) . basis for have auDitOr’S repOrt auDitOr’S We and the the disclosures practices for Selvaag Bolig set out registration Norwegian comprise the 2011, and the income its financial for the year then ended Norway, and for the , which comprise the cash flow for the year judgment, including the with the law and internal control as the the group. The financial d in accordance with the d in accordance with the , and , and of of based on our audit. based on our audit. the Financial Statements the Financial Statements the group the group December December s our opinion that the s our opinion that the is consistent with the financial is consistent with the financial rnal control relevant to the entity’s rnal control relevant to the entity’s accordance statements, whether due to fraud or accordance statements, whether due to fraud or are prepare in accordance with in accordance with the financial position the financial position and for such and for such nt and appropriate to provide a nt and appropriate to provide a and its cash flows and its cash flows Norway. Selvaag Bolig ASA Selvaag Bolig ASA is necessary to enable the preparation of is necessary to enable the preparation of concerning the financial statements concerning the financial statements Selvaag Bolig ASA, page 2 Selvaag Bolig ASA, page 2 ancial statements responsible for the preparation and fair responsible for the preparation and fair , changes in equity and , changes in equity and present fairly, in all material respects, present fairly, in all material respects, considers inte r are coverage of the loss - 2011 - ct and accounting standards and practices generally ct and accounting standards and practices generally as adopted by EU The financial statements of e International Standard on Assurance Engagements ISAE e International Standard on Assurance Engagements ISAE . of Selvaag Bolig ASA ents and plan and perform the audit to obtain reasonable ents and plan and perform the audit to obtain reasonable of the parent company of the group for the year then ended, and a summary of significant accounting for the year then ended, and a summary of significant accounting report ng Director determine comprise the balance sheet as at 31 law and regulations. n Accounting A Managing Director’s Responsibility for ocumentation rwegian has been prepared for information purposes only. rwegian has been prepared for information purposes only. Selvaag Bolig ASA as at 31 December 2011 2011, income statement ’s report statements of the parent company , and its financial performance Postboks 748 Sentrum, NO-0106 Oslo company’s accounting information in present fairly, in all material respects, Independent auditor's report 2011 and the Managing Directo the parent company and the fin circumstances, but not for the purpose of expressing an opinion on the circumstances, but not for the purpose of expressing an opinion on the as adopted by EU the group uditor entity’s internal control. An audit also includes evaluating the appropriateness of entity’s internal control. An audit also includes evaluating the appropriateness of December and the Managi Engagements Other than Audits or Reviews of Historical Financial Information”, it is Engagements Other than Audits or Reviews of Historical Financial Information”, it is 713 MVA, Medlem av Den norske Revisorforening the parent company al statements. The procedures selected depend on the auditor’s al statements. The procedures selected depend on the auditor’s policies used and the reasonableness of accounting estimates made by management, as policies used and the reasonableness of accounting estimates made by management, as and cash flow statement, statements that are free from material misstatement, whether due to fraud or error. statements that are free from material misstatement, whether due to fraud or error. www.pwc.no comply with ethical requirem evaluating the overall presentation of the financial statements. Annual Shareholders' Meeting 21 March 2012 elieve that the audit evidence we have obtained is sufficie performance and its cash flows for the year then ended in accordance with International Financial Based on our audit of the financial statements as described above, and control procedures we our opinion that management has fulfilled its duty to produce a proper and clearly Opinion on the financial statements In our opinion, the financiallaw statements and of regulations the and parent company ASA as at 31 December in accordance with the Norwegia accepted in Norway. Opinion on the financial statements In our opinion, the financialfinancial statements of position the of group performance and its cash flowsReporting for Standards the year then ended in accordance with InternationalReport Financial on Other Legal and Regulatory Requirements Opinion on the Board of Directors’ Based on our audit ofinformation the presented financial in statements the as Board describedgoing of above, concern Directors it assumption, report i and thestatements proposal and for complies with the Opinion on Registration and D Based on our audit ofconsidered the necessary financial in statements as accordance described with3000 above, th “Assurance and control procedures we our opinion that management hasand fulfilled documentation its of duty the to producebookkeeping a standards proper and and practices clearly generally accepted in Oslo, PricewaterhouseCoopers AS Erling Elsrud State Authorised Public Accountant (Norway) Note: This translation from No then ended, and a summary of significant accounting policies and other explanatory information Accounting Act and accounting standards andpreparation and practices fair generally presentation accepted of in the financial statements of the group in accordance with conducted our audit in accordancegenerally with accepted laws, in regulations, Norway, and including auditing International standards Standards and on Auditing. Those standardsassurance require about whether the financial statements are free from materialAn misstatement. audit involves performing procedures to obtain audit evidence about the amounts and preparation and fair presentation of the financial statements in order to design audit procedures that To the Independent a Report on the Financial Statements We have audited the accompanyingfinancial financial statements statements of of statements of statement policies and other explanatory information. balance sheet at 31 then ended, and a summary of significant accounting policies andThe other Board explanatory of information Directors and the The Board of Directors presentation of the financial Accounting Act and accounting standards andpreparation and practices fair generally presentation accepted of in theInternational financial Financial statements Reporting of Standards the groupBoard in of accordance Directors with financial Auditor’s Responsibility Our responsibility is to expressconducted an our opinion audit on in these accordance financialgenerally with statements accepted laws, in regulations, Norway, and including auditing Internationalthat standards Standards we and on Auditing. Those standardsassurance require about whether the financial statements are free from materialAn misstatement. audit involves performing proceduresin to the obtain audit financi evidence aboutassessment the of amounts the and risks oferror. material In misstatement making of those the risk financial preparation assessments, and the fair auditor presentation of theare financial appropriate statements in in the order toeffectiveness design of audit the procedures that accounting well as We b our audit opinion. PricewaterhouseCoopers AS, T: 02316, Org.no.: 987 009 . basis for We disclosures practices Norwegian comprise the 2011, and the income Norway, and for the , which comprise the cash flow for the year judgment, including the internal control as the the group. The financial of of based on our audit. based on our audit. the Financial Statements the Financial Statements the group the group December December rnal control relevant to the entity’s rnal control relevant to the entity’s statements, whether due to fraud or statements, whether due to fraud or in accordance with in accordance with and for such and for such nt and appropriate to provide a nt and appropriate to provide a Selvaag Bolig ASA Selvaag Bolig ASA is necessary to enable the preparation of is necessary to enable the preparation of ancial statements responsible for the preparation and fair responsible for the preparation and fair , changes in equity and , changes in equity and considers inte r are as adopted by EU The financial statements of of Selvaag Bolig ASA ents and plan and perform the audit to obtain reasonable ents and plan and perform the audit to obtain reasonable for the year then ended, and a summary of significant accounting for the year then ended, and a summary of significant accounting ng Director determine comprise the balance sheet as at 31 Managing Director’s Responsibility for 2011, income statement ’s report statements of the parent company Postboks 748 Sentrum, NO-0106 Oslo and the Managing Directo the parent company and the fin circumstances, but not for the purpose of expressing an opinion on the circumstances, but not for the purpose of expressing an opinion on the uditor entity’s internal control. An audit also includes evaluating the appropriateness of entity’s internal control. An audit also includes evaluating the appropriateness of December and the Managi 713 MVA, Medlem av Den norske Revisorforening the parent company al statements. The procedures selected depend on the auditor’s al statements. The procedures selected depend on the auditor’s policies used and the reasonableness of accounting estimates made by management, as policies used and the reasonableness of accounting estimates made by management, as and cash flow statement, statements that are free from material misstatement, whether due to fraud or error. statements that are free from material misstatement, whether due to fraud or error. www.pwc.no comply with ethical requirem evaluating the overall presentation of the financial statements. Annual Shareholders' Meeting elieve that the audit evidence we have obtained is sufficie then ended, and a summary of significant accounting policies and other explanatory information Accounting Act and accounting standards andpreparation and practices fair generally presentation accepted of in the financial statements of the group in accordance with conducted our audit in accordancegenerally with accepted laws, in regulations, Norway, and including auditing International standards Standards and on Auditing. Those standardsassurance require about whether the financial statements are free from materialAn misstatement. audit involves performing procedures to obtain audit evidence about the amounts and preparation and fair presentation of the financial statements in order to design audit procedures that To the Independent a Report on the Financial Statements We have audited the accompanyingfinancial financial statements statements of of statements of statement policies and other explanatory information. balance sheet at 31 then ended, and a summary of significant accounting policies andThe other Board explanatory of information Directors and the The Board of Directors presentation of the financial Accounting Act and accounting standards andpreparation and practices fair generally presentation accepted of in theInternational financial Financial statements Reporting of Standards the groupBoard in of accordance Directors with financial Auditor’s Responsibility Our responsibility is to expressconducted an our opinion audit on in these accordance financialgenerally with statements accepted laws, in regulations, Norway, and including auditing Internationalthat standards Standards we and on Auditing. Those standardsassurance require about whether the financial statements are free from materialAn misstatement. audit involves performing proceduresin to the obtain audit financi evidence aboutassessment the of amounts the and risks oferror. material In misstatement making of those the risk financial preparation assessments, and the fair auditor presentation of theare financial appropriate statements in in the order toeffectiveness design of audit the procedures that accounting well as We b our audit opinion. PricewaterhouseCoopers AS, T: 02316, Org.no.: 987 009 auDitOr’S repOrt auDitOr’S 80

A 52 83 Consulting, design and production: apelaND English translation: rolf e Gooderham Print: Zoom Grafisk SelSKapSreGNSKap SelvaaG BOliG aSa SelSKapSreGNSKap SelvaaG Photos and illustrations: Photos aftenposten/Scanpix apeland Gudim Bård Dyrvik arkitekter Finansavisen Fotoringen Nyttingnes jarle arkitekter lund+Slaatto Burell lasse Media Maestro Nyebilder.no Selvaag Bolig ASA Selvaag address: postal 544 Økern p O Box NO-0512 Oslo Visiting address: 22 lørenvangen NO-0512 Oslo phone: +47 23 13 70 00 e-mail: [email protected] www.selvaagbolig.no

A 53 Appendix 4: consolidated financial statements selvaag bolig 2010 with comparative figures 2009 and 2008 (IFRS) 2 1

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A 75 Appendix 5: financial statements selvaag bolig as 2010 (NGAAP) 2 1

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A 85 Appendix 6: financial statements selvaag bolig as 2009 (NGAAP) 2 1

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A 95 Appendix 7: consolidated financial statements hansa property group 2010 with comparative figures 2009 (IFRS) 7 8 9 2 3 1 1 4 13 14 16 50 52 53 62 Side INNHOLDSFORTEGNELSE FORORD ÅRSBERETNING RESULTATREGNSKAP KONSOLIDERT BALANSE KONSOLIDERT EGENKAPITAL KONSERNETS I ENDRINGER KONTANTSTRØM KONSOLIDERT NOTER TIL REGNSKAPET MORSELSKAP RESULTATREGNSKAP MORSELSKAP BALANSE MORSELSKAP KONTANTSTRØMOPPSTILLING REGNSKAP MORSELSKAPETS TIL NOTER REVISJONSBERETNING , Oslo, 12, Lørenskog . 10 - 12, Lørenhagen Wendtsgt Dr. 2010/3. kvartal 2010/3. kvartal 2010 Årsrapport

A 96 3 og - setningen setningen organisering - eiendomsutvikling, etter en eiendomsutvikling, en etter art området,HPG Vest er AS og 93 . - 31.12. for Selskapsregnskapet virksomhetens virksomhetens - ÅRSBERETNING 2010 ersiell og juridisk bistand til prosjektene. juridisk og bistand ersiell lokalisering lokalisering Pro 5 ASPro er morselskapfor porteføljenOslo i - - og prosjektutvikling, byggeledelse og administrative tjenester ogog prosjektutvikling, administrative byggeledelse form i av med et årsresultat som var negativt med MNOK MNOK med negativt var som med årsresultat et - 13 ering. HPRO har i all hovedsak et krav til 60 % forhåndssalgfør tilbyggestart. krav 60 % hovedsak all et i ering. har HPRO og utleievirksomhet i alle eiendomsporteføljene. I Vestparken på Lørenskog er på Lørenskog eiendomsporteføljene. er I alle og utleievirksomhet i Vestparken - skapene for 2012. Konsernets etablering - etablering Konsernets Hansa Property Group AS (”HPRO”, Group”Selskapet”forretningsAS Property Hansa ”Konsernet”) har og Årsregnskapet for Redegjørelse kjernevirksomhet sin – gangmed godt i 2010 i Konsernet var 2010 igangsatt av finanskrise. løpet i Det oppstart og er med fra til 2009 periode 2007 s algs restlageret av selveierleiligheter solgt. I tilegg deter solgt leiligheter i blokk 625 som årsiekontrakt le inngått en 10 Tønsberg om er avtale det I januarhadde byggestart i 2011. 30 boliger og bygges skal det kontorenekombinasjonsbygg. Over nytt et i med NAV byggetferdig skal stå 2012. i I den felles Stavangerporteføljen eide har det vært salgsstart det 2 boligprosjekter Videre kvartal har i 2011. 1. byggestart Brygge, blir i hvor på Lervig Oslo værteide porteføljen etthar salgsstartfelles i prosjekt Jaasund. Idet den vært på salgsstarterflere i prosjekter også hvor bygging er gang i Stord på nyåret. På er for leieinntektene 2011. sikret også I tilregnskapsprinsipperboligsalg Konsernetsresultatføres henhold (IFRS) ved inntekter forhåndssalg, med betydelig et selv at førstsom til overlevering kunde, innebærer ved noe regnskapsførtvil førkonsernetfasen omsetning være lav er i byggtil kommer over der overlev Estimertfør salgsperiode byggestartGjennomsnittligfor 6 måneder.byggeperiode er derforførst overleveringer måneder. vil storeboliger gi volumet på caDet 18 utslag er i regn Årsregnskapet – for omhandler 01.01 perioden 2010 oggod Norge. i regnskapsloven regnskapsskikk er etter Group AS Property Hansa avlagt felleseide prosjekteneSta i vangerporteføljen, De Konsernregnskapet IFRS. etter avlagt er konsolideres egenkapitalmetoden. etter inn Stord Osloporteføljen og på Resultat konsolidertPå konsernets var 54. nivå Årsresultatet 2010 MNOK omsetning i negativt var om var isolert Group AS Property morselskapet Hansa 97. For med MNOK MNOK virksomhetsadresse i Oslo. Virksomheten omfatter eiendomsutvikling i sentrale regioner i regioner i sentrale i omfatter eiendomsutvikling Oslo. virksomhetsadresse Virksomheten i juni 2007. stiftet 5. Norge. ble Selskapet utgangenVed porteføljer 2010 eier 100% HPRO for av av eiendomsutvikling på Kaldnes Brygge Tønsberg, i på Lørenskog, utviklingsporteføljer samt deleide og Oslo i Stavanger. Videreandel eies av et utviklingsområde på Stord der den andre eieren er Aker. Totalt m2. 480.000 utviklingspotensialet størrelsesorden porteføljene i av andel utgjør HPROS trekonsernspissermed er hvor Group organisertAS Property Hansa underkonsern og HPG Østmorselskap erfor AS Stavangerregionen, porteføljene i Tønsberg og på Lørenskog. H morselskap Administrasjonenforgjelder morselskapet i tjenester Stord. yter som eiendoms økonomisk, finansiell, komm 2 g de er det kling. På fremsatt et n ordinære del av sine sine av del at det skulle HPRO om en salgene som er i de god Hjulpet av et lavt Hjulpet etlavt av ), finansiering og Det er Det ne om . aksjonære men disse årene ble i stor i grad ble men disse årene rfaringene fra samarbeidet gjorde at i desember. Dette betyr at alle som at som Dette betyr alle desember. i der sistnevnte er overtakende selskap. , salgsklare. E selskapsgjennomgang (due diligence salgsstart 2010 planlegges i perioden i frem bygging det raskere det arbeidet som er nedlagt konsernet. i årets Ved slutt var salg til salgene bokføres. Regnskapseffektene av salgene fra fra salgene av salg tilbokføres. salgene Regnskapseffektene for bekrefter at Hansa Property Group sitter på gode sitter attraktive i på prosjekter Group Property Hansa at bekrefter som vil medførefør likviditetsgap vil som et inntektenekommer til styret fra aksjonærer som representerer mer aksjene enn 2/3 av i representerer som fra aksjonærer styret til vig Bryggevig og vært boliger solgt Sjøkvartalet.den Hagebyen ble både i Jaasund På nne aksjonærgruppen med mellombytteforholdet selskapene om enige er også dministrerende direktør Forord Vi Vi er godt gang. i prosjektene2009 , Det jobbetmed ble godt 2008 og i preget oppstart, av finanskrise ogrestrukturering. Det er derfor gledelig at ekstra 2010i vi ser begynnende resultater av på Kornmoengastartet. Løren Kaldnes På 2 har av oppføringen som samtidig vi i gang i vi med alle og salg utleie i eiendomsporteføljene våre. I Stavanger har det på Ler førsteut boligblokken lagttil salg Lørenskog På desember. i har vært det den nye i salg Løren, Mortensrudvært o Wendts både på salg Oslo har gate,mens i det blokken Dr. i forslag inngått leieavtale med NAV for et nytt kontorbygg. Oppnådde priser på de på de forkontorbygg. Oppnådde nytt priser et inngått med NAV leieavtale den annen side vil Selskapetforfall vil ha den annen side på en årene de nærmeste 2010 vil følgelig ikke komme før i regnskapet for 2012. for 2012. regnskapetfør komme følgelig i ikke 2010 vil utvi gipå siktved avkastninggode Groupvil Property Hansa som prosjekter har være nok likvider til et ”overvintringsscenario” frem til sommeren 2011. rentenivå, de avtaler som inngått ble og et meget forhold bevisst til kostnaderikke har vi bare overholdt dette, ogsåmen brukt ressurser på eiendomsutviklingen. Dette medførte at kom tilb ake. markedet klarenår Detvar våre vi med tar prosjektene imidlertid tid fra prosjektene ut legges forpliktelser arbeider med Hansa Property Group sentralt, nå sittersentralt, sammen. nå Group Property medarbeider Hansa selskapets administrasjon meddelte Før 2009 emisjonen i fusjonmellom Selskapet og Bolig Selvaag AS De forbehold om en tilfredsstillende gjennomført områder. I prosjektene med alle til påske. året av er løpet i januar i 2010 AS med Bolig Selvaag inngått Managementavtalen ble som implementertkonsernet. i Tilgangen tilressurser Selvaags kompetanse har og bidratt til at prosjekterflere våre har av blitt PropertyHansa Groupforeslosamlokalisering 2010 en høsten selskapene på Løren, av noe begge fantparter fornuftig. fantFlyttingen sted generalforsamlingen. for nåværendeEt eiere. fusjon HPROs riktig er en Det at oppfatning er undertegnedes nytt Bolig Selvaag bli vil en av AS landets største boligbyggeremed tilstrekkelig finansieringforde likviditetsutfordringer å løse som HPRO ha ståttle vil overfor nærmeste også børsnotering 2 årene.senere En gjøreenn dagens vil aksjen mer likvid aksje HPRO alene. Hannestad Thomas Rygg A generalforsamlingens endelige vedtak. Forslaget forutsetter at Selvaag Pluss Eiendom KS forutsettergeneralforsamlingens vedtak. endelige Forslaget Eiendom Pluss KS Selvaag at forkant.fusjonEtter er en i SelvaagAS i tingsinnskudd Bolig som (”SPE inn er KS”) lagt å børsnotereplanen selskapet. det nye Forslaget er presentertfor styret og undertegnede fusjon. via forbeholdene prosessen i en Dersom videre mot gå som vedtatt å har prosessenkan forslaget løftes vil fremlagt bli en i ekstraordinær generalforsamling, gitt bli orientering utløpetsannsynligvis mai.innen nærmere av En vil

A 97 5 tilsammen ca 12 000 m2 ca 12 000 m2 tilsammen ere garantikonsortium et Driftskostnader Konsernet 2009 betydelige gjenn i kostnadsreduksjoner somomførte tilpasset kostnadsnivået til aktivitetsnivået. 2010 er i redusert Driftskostnadene med sammenlignet som dels 2009 nivået effekt kostnadsreduksjoner, følge av som og dels av Det er i 2010 solgt 257 boliger totalt for alle porteføljene på 100 % basis, noe som tilsvarer tilsvarer som%for basis,totalt porteføljene noe på 100 alle boliger solgtDet 257 er 2010 i salgsomsetningenca 754. av HPROs andel utgjør ca MNOK en samlet på omsetning 580. prosjekteneMNOK Flere av % og%for har salgsgrad klare nådd 60 70 er igangsetting. I tilleggmed besluttet Selvaag sammen Selskapet Bolig å etabl Videre i fremdrift porteføljeutviklingen 180 januarBygging av Blokk i 2011. av 625 på Vestparken Det startet ble bygging leiligheter av leiligheterogså samt er 5, rekkehus på Løren Bygging på Løren igangsatt. 2 byggestart også planlagt er tidlig Det gang 2011. i i også i kom Kornmoenga og på blokker førstekvartal i og Sjøkvartalet Stavanger i av blokkene Mortensrud, samt Hagebyen av på i påske byggestart over Brygge ha kombinasjonsbygget2011. på Kaldnes tillegg I vil 2011. åretav For planlagt løpet 2011 er i på Bjørnåsen, det salgsstarter delfelt samt på nye Vestparken, Kornmoenga, Lervig Brygge, og Jaasund Brygge. Kaldnes Samtidig avventes på Lillohøyden. skolesituasjonen på en avklaring Gaard og reguleringen på Aase perioderegnskapet i hovedpostene til Kommentarer Omsetning Regnskapet at preges per konsernet 31.12.2010 av er fase en byggeforbe i redende der boliger forhåndsselges som nødvendig forsikkerhet finansiering av byggeprosjekter. I kunde, tilnoe som tiloverlevering IFRSfrahenhold resultatføresboligsalg ved inntekter medinnebærer betydelig forhåndssalg, et selv regnskapsført at vil før omsetning være lav 2010 består kommer i Omsetningen til overlevering. derfasen bygg konsernet er i over leieinntekterfremstførst ferdigederfor av omsetning og noe og av leiligheter på Vestparken på Lørenskog. for oppføring av 180 leiligheter på Løren 2B. Byggingen er her i gang og partene vil selge selge partene vil gang og i her er Byggingen 2B. 180 leiligheter på Løren for av oppføring ferdigstiltprosjektet 2012. i dette er ferdige når boliger Næringseiendom generert til samme næringslokaler og leilighetern har Konsernets utleie av leieinntekter i 37 inkludert2010 tilsvarende MNOK tilknyttedefelleskontrollert selskap og virksomhet. På stabil. m2 utleiegraden er per leiemarked tøft et tross av ByutviklingKaldnes har AS med inngått 10 års en offe om leieavtale avtale en ntlig aktør for ca 2 500 m2 BTA et i nytt kombinasjonsbygg. Over kontorene prosjekteres tre det etasjer 30 leiligheter. til sammen med komme og bygging vil Disse på nyåret salg vil i 2012. sommeren med innflytting igangsettes2011 våren kontorbygg medmarkedet større Sentrum et I langs Vest tillegg i Lørenskog AS er Skårerslettakan4 000 m2 – BTA ca bygges som tre etapperi av BTA. - 4 og - (TS) og t salgs - som gir en egenkapitalgrad på gir på en egenkapitalgrad som 93 173 93 93 173 93 - - resultat fra Tilknyttet MNOK MNOK 314. og egenkapital på MNOK 730 MNOK og egenkapital på 144 2010 ringer og andre faktorer som er vurdert å være relevant. Faktisk resultat kan resultatrelevant. Faktisk være faktorer ersom å vurdert andre ringer og ekket mot annen egenkapital ekketmot annen Balanse 1 839. 2010 utgangenkonsolidert Egenkapitalen Totalkapitalen av ved MNOK var på nivå 721. MNOK på var per31.12.2010 totalkapitalenkonsernet av Egenkapitalen 39,2% utgjorde i 31.12.2010. per Sum overføringer: Driftsutvikling med BoligSelvaag Selvaag hvor managementavtale januar Konsernet 2010 i inngikk fleste Konsernets for de av og utvikling av Bolig drift seg påtok ansvaret tilført blitt både dette med Konsernet har eiendomsporteføljer. og er implementert Avtalen kapasitet.kompetanse og managementavtalen har at tempoet Konsernet økt opplever i flere raskt blit prosjekter har at prosjektutviklingen, ved nå effekter og høster D 63,8 %. Fri egenkapital MNOK utgjør KonsernetI gjeld 1 075.konsernets en samlet langsiktigtillegg har utgjør på MNOK av ekstern andel relative langsiktiggjeldfelleskontrollerte 549. MNOK Av virksomheter i eiendomsprosjektene. på 15 balanseført MNOK 41 er MNOK rentekostnader på Det er 2010 bokført i eiendomsprosjekter, 884 i MNOK tomterferdige bygg. og I tillegg er det 496 som bokført samlet investering MNOK Tilknyttet i Selskap(TS) og Felles Kontrollert (FKV). Virksomhet at krever ledelsen IFRS med overensstemmelse i konsernregnskap Utarbeidelsen av foretarrderinger vu og estimater og tar forutsetninger som påvirker anvendelsen av regnskapsprinsipper og regnskapsførte på eiendeler og beløp forpliktelser som ikke fremgår kilder.klartfra tilknyttede Estimatene forutsetninger og andre er basert på tidligere erfa fra estimatene. avvike disse Kontantstrøm Endring kapitalbinding av varelager i elementer og betalte rentermed sammen utgjør som kontantstrømseffekt, og ikke nedskrivninger har For Property morselskapet Group Hansa isolert AS per balansen viser 31.12.2010 en totalkapital 1 på MNOK byggeklare. Boligprosjekter for salg 2010 i den felleseideKonsernet 2010 hatti fire salg åtte løpet prosjekter, i av til sammen har i Osloporteføljen(Mortensrud leiligheter, rekkehus,5 leiligheter Mortensrud Løren og Kornmoenga leiligheter/rekkehus/oppgangsblokker),felleseidetre Stavanger den i porteføljen B4, (Lervig Brygge;Jaasund; Sjøkvartalet Fjordhagen og Hageby 1), samt i Lørenskog. på Vestparken blokk 625 i Felleskontrollertforklarer avviketmellom som postene virksomhet (FKV), de vesentligste kontantstrømfra aktiviteter. operasjonelle driftsresultat og Disponeringer Morselskapets foreslåsunderskudd følger:dekket som

A 98 7 MNOK MNOK MNOK MNOK MNOK MNOK MNOK MNOK MNOK . Partene var i i var . Partene MNOK MNOK 9 3 16 58 -64 -16 -7,3 -0,7 -88,3 -16,0 -64,3 Verdiøkning Nedskrivning Nedskrivning Verdiøkning Verdiøkning . (FKV/TS) Skattetvist Nedskrivning prosjekt Redusert tomteverdi Redusert tomteverdi (FKV/TS) (FKV/TS) og infrastrukturforpliktelsergjort at ikke viser er det . - forpliktelse på MNOK 27,7 knyttet til dette i 2010. Dette inngår knyttettil forpliktelse 27,7dette Dette inngår 2010. på MNOK i , og fordringen forsiktighetshensyner av tapsført 2,8 som følge at2,8 overkursfondet som av blir økt 7,2. med MNOK Utfallet gir : Jaasund Lørenskog Sentrum Vest Skårer verdiendringSum basis 100% HPRO AS Vestparken Sum Skårer Spesifikasjon nedskrivning Lørenskog Sentrum Vest Verdiendring tomter i porteføljene følge verdivurdering av som ny Lervig Brygge Aase Gård Totalt resultatet viser 2010 nedskrivninger per på tilfølgende sammen av bestående 88,3 poster Konsernet omtalt har, som årsregnskapet i for2009, hattfra en tvistesak for ligningen emisjonskostnader.2007 vedrørendeav den skattemessige behandlingen Skattekontoret fradrag aksepterte alle et unntatt frem de 18.08.2010til at kom vedtak av i men emisjonskostnad, kunne anses som 10 somtilretteleggingshonorar ikke MNOK på måtte aksjer.ervervede anses anskaffelseskostnadfor som på Konsekvensen resultatet konsernregnskapet at blir belastet er 10,blir egenkapitaleffekten med MNOK bare - likevel MNOK ingen effekterlikviditetsmessige hovedforhandling i januar 2011 ved Oslo tingrett og Konsernet tapte. Saken er prinsipiell ertapte. prinsipiell tingrettog Saken Oslo Konsernet januar 2011 ved hovedforhandling i for lagmannsretten. inn anket og er Gode markedsutsiktergodt og salg Stavangermarkedet i gir grunnlagfor reversering av tidligere på Jaasund,Gaard årsmed tilsammennedskrivninger Aase og Lervig Brygge fra inngårlinjen resultat som i konsernets 51,8 utgjør andel 82,9, MNOK hvorav MNOK TS/FKV konsernregnskapet.i betydelig følge av 64 kommerMNOK Nedskrivning Lørenskog i som Vest på Sentrum AS ny følgesom av nedskrevet usikkerhet er Bolig omkring utnyttelsespotensialet. AS Skårer vurdering utbyggingstakten prosjektene i av Øvrige nedskrivningsposter - Tvistesaker tilstrekkelige konsernregnskapet i avsetninger Lørenskog i tidligere Sentrum i Vest år. Det er derfor resultatført en økt Avsetning for forpliktelser fremtidige Nytt estimat på parkerings i linjen kostnader solgte eiendommer konsernregnskapet. i Videre har Konsernet oppstarten siden hatt en tvist med Skattrefusjon Øst vedrørende av på kostnadermva etableringen til eiendomsmegler ved Konsernet. av Tvistesummen 4,7 MNOK ca. utgjør 6 konsernet konsernet konsernet. Til og med : gte dette inn i Konsernet. Konsernet. i gte dette inn . dering følgende resultater ttet til aksjenedsalget- En Bo i apet etter egenkapitalmetoden etter apet . MNOK 9 og varelageret måles til laveste verdi av kostpris til laveste av måles verdi og varelageret anskaffelse ved og netto og med påfølgende resultatføring verdiendringer,og mednedskrivninger påfølgende av som enten 1. 2009 ble halvår resultatposterfra Stavangerporteføljenkonsolidert 100 %. inn Etter nettoresultatet- En Bo av i andel blir bareaksjenedsalget juniHPROs i 2009 regnskapsmessige konsekvenser kny resultatført konsernregnsk i av prosjekter Salg gjennomført Det tomtesalg større er 2010 et Tomt i på Jaasund Stavanger.i i Transaksjonen 100. innebærer en betydelig størrelsesordenfor MNOK m2 solgt er 15.000 infrastrukturforpliktelse således og er 13,6. MNOK tap etstørrelsesorden i med bokført Kontanteffekten transaksjonen fullfinansierer infrastrukturinvesteringen av første av del på transaksjonenområdet av av nå påbegynt.Jaasund, er Resultateffekten og utbyggingen inngår linjen for i fra resultat FKV/TS konsernregnskapet.tidligere i nevnt Som avsnitt er salg. i 1) (Fjordhagen Jaasund første på prosjekt Os i Rettfør jul(Bjånes 2010 besluttet på Moldegaard prosjektet å selge Selskapet Utvikling AS) tilbaketil Milepel AS som opprinnelig sol Bakgrunnen for beslutningen var at prosjektet hvilte på en utbyggingsavtale med med på en utbyggingsavtale hvilte prosjektet for beslutningenat Bakgrunnen var grunneier som måtte og reforhandles at ligger prosjektet meget langtfrem tid. i Bjånes har . 2010 7,6 i MNOK tap på konsernet samlet påført et Finansposter følge at som av 2009 sammenlignetredusert med konsernet betydeligRenteutgiftene er i konsernetsrentevilkåreneogreduksjon gjennomrestrukturering 2009, våren av bedret ble gjeldenden samlede konsernet.Totale i renteutgifter 2010 utgjør i MNOK 41 hvorav 15 erMNOK balanseført. Resultatførtkonsernets effektav rentesikringskontrakt er mednegativ eiendomsprosjekter konsernets Verdivurderingav konsernetHPRO henhold i til IFRS behandler tomtearealer og byggeprosjekter som varelager, realisasjonsverdi. eiendelen reflektererordinær Realisasjonsverdien av verdien ved virksomhet. Det er 31.12.2010gjennomført per en oppdatert konsernets verdivurdering av tomter, tidligere nedskrivninger. av reversering eller som Verdivurderingen eiendommene realisasjonsverditil representerer en estimertav en antattkonsernet av utbyggingstakt, på bakgrunn neddiskontert og er basert på kontantstrømfra prosjekter og eiendommer. Boligprosjekter på grunnlag er vurdert av brutto salgsinntekter. Næringsprosjekter er på grunnlag vurdert forutsetningen av at eiendommenesom hvert de ferdigstilt. avhende etter konsernetblir vil Estimert forventet kontantstrøm rentenivåer risikofri som ved diskontert er representerer en rente, kapitalkostnadforholdtil gjeldsgrad i og risikopremie bestemt hvert enkelt av prosjekts risikoprofilkommersielle faktorer. og ekstern En andre verdivurdering en utført av profesjonell og anerkjent verdsetterfor parallelt, er støtte benyttet egne og som vurderinger. Gruppens utviklingsprosjekter klassifisert og eiendommer er konsernets i som varelager balanse. Ettersom varelager måles til kostpris den laveste av og netto realisasjonsverdi, kan ikke merverdier på eiendommer realisasjonsverdienhvor kostpris overstiger realisasjonsverdienhvor erenn motmotregnesmindreverdier lavere på eiendommer verdivur ny kostpris.Oppsummert viser

A 99 - - 9 jekk av av jekk . og båtplasser. og båtplasser. - og leiekontrakter på - seiendommer med over . eller deleide selskaper. Eiendoms selskaper. eller deleide - . og leiekontrakter blir det foretatt kreditts leiekontrakterdet en og blir . - iklingfor og verdier gjennom aksjonærene skapes isse lånebetingelser (covenants) til isse konsernets lånebetingelserviktig (covenants) i innlån. element Et ggeet er sentrumsnært som havneområdeStavanger regulert i til utvikling av på låneporteføljen. opp mot Målt utfallet restruktureringsprosessen av og motpartsrisiko følgesogmotpartsrisiko konsernnivå Property Hansa i opp på Group. Konsernet - og næringsbygg. Konsernet er videre eksponert gjennom bankinnskudd. Gruppens gjennomGruppens bankinnskudd. eksponert videre Konsernet er næringsbygg. og g- Kreditt blir eksponertformotpartsrisiko inngår når gruppen i selskaper salgs kontrakter entreprenører. med for gjelderav inngåelse rutinene også kundene. samme De Risikoen på leverandørsiden knytter segtil potensielle negative konsekvenser på fremdrift følgeentreprenør. problemer hos av prosjekteri som v knyttet er Det restruktureringsprosessen 2009 i å sikrevar lånebetingelser løpende at girkonsernet mellomfor porteføljenforutsigbarhet, samsvar estimert utbyggingstakt og og bedre løpetidene de avtalte lånebetingelser konsernet overholder nå Eiendomsporteføljene Selskapets skapemål errealiserbareverdier på eksisterende å porteføljer. Nøkkelkompetansen er eiendomsutv realisering av prosjekter, enten ved å fullføre prosjektene eller ved salg av delutviklede av salg fullføre prosjektene eller ved å prosjekter, ved realisering enten av prosjekter. Utviklingsarbeidet utføres gjennom hel porteføljen vil også kunne inneholde forvaltningseiendommer, enten i påvente av påvente forvaltningseiendommer, ogsåi porteføljenkunne inneholde vil enten sammensatt salg.er av Eiendomsporteføljen videreutvikling av påvente eller i utviklingseiendommer befinner som faser ulike seg i av verdikjeden,for har potensial samt utvikling til bolig, næring,og handel offentligeformål. porteføljen Størstedelen av består til boligformål regulerteav eiendommer Stavangerregionen boligutviklings som et AS Stavangerporteføljenorganisert er ledende En Bo er under av: og består selskap Stavangerregionen i Bry Lervig (i) gang de i i salget er m2. Her 60 000 ca utviklingspotensial på med et bolig og næring første prosjektene. (ii) Jaasund prosjektet er som Sola, et regulert i sjønært område første i kvartal 2009 til småhusbebyggelseet med utviklingspotensialpå ca 52 000 m2. Av dette ca 15 ble 200 første den blokken. på salg gang med i vi Jaasund er På 2010. tili Øster Hus m2 solgt (iii) Aase Gaardbeliggende et er attraktivt som prosjektet Sandnes under villaområde i tid Reguleringsprosessen lengre tatt m2 har småhusbebyggelse. regulering 000 til ca 25 første 2011 halvår løpet av forventet reguleringi er enn antatt, og Lørenskog utvikling etfremskredetLørenskogporteføljen av langt område er blokken ellevte den Vestparken hvor AS fordeler seg på Dette så langt. 300 boliger solgt er under oppføring, som Lørenskogbåde næring Vestbestår av Sentrum AS og boliger, samt Skårer Bolig som AS ennå ikke er påbegynt. Prosjektene ha r et totalt potensial på ca 120 000 m2, hvorav næringkan utgjøre 40 000 m2. ca Prosjektet har en fleksibel produkter markedstilpassede ulike for å igangsette gir mulighet regulering som boli kredittrating denne risikoen slik god med at banker i ervesentlige plassert bankinnskudd salgs av inngåelse Ved anses lav. som Kaldnes BryggeKaldnes Porteføljen Brygge på Kaldnes Tønsberg i av drives lokal prosjektledelse ansatt Kaldnes i god Byutvikling etsentrum. Tønsberg består sentralti En av AS. Porteføljen havneområde m2, 000 ca 92 på et potensial prosjektetav realisert.Gjenværende består av er del del fordelt likt mellomog bolig næring, samt et størreparkerings antall og gangforgir å settemulighet prosjekter i fleksibel regulering som en Området har 8 . finansiell ulighetene for ekter som ligger ute. Det er 3a bekrefter styretgrunnlag atfor er det fortsatt d rift og . sette hendelser og timing av prosjektene i markedet. Hansa markedet. Hansa prosjektenetiming i av og hendelser sette . på Kornmoenga. på Kornmoenga. onsernets primære risiko er knyttet mot opp er onsernets risiko primære fra på boligmarkedet påvirkningen ortsatt drift F I til regnskapslovens henhold §3 - for at 2010 årsregnskapet på dette. basert satt er opp balansedagen etter Hendelser Risikoforhold og risikostyring Generelt Risikostyring sikre risikofaktorer skal eventuelle betydning at av forProperty Group Hansa tilfredsstillendeM en virksomhet sin måte. AS på blir avdekkethåndtert og vekst vil løpende bli vurdert mot de risikofaktorer som finnes. For å kunne tilby kunne bli finnes. løpende motvurdertvekstrisikofaktorer å tilby For som de vil verdiskapningfor aksjonærer,kunder kan og samarbeidspartnere ikke risikofjernes, men måte en effektiv på må håndteres og markedsmessig risiko Finansiell K Etter balansedagen har Konsernet fortsatt med salg i de prosj i Konsernetsalg fortsattmedEtter har balansedagen etter balansedagen7. per mars totalt solgtboliger av 30 til en verdi ca NOK 104 mill. 75. MNOK salgsinntektene ca utgjør av HPROs andel WendtsVidere er det Dr.gate 2011 startet i av bygging 5 samt på Løren på Lørenskog, og uro og internasjonal uro usikkerhet. og fastrenteavtaler Konsernetfølge et inngått to til sammen300. har lavt av Som på MNOK 9.rentenivå, effekt gitten negativ harresultatet på MNOK dette på 2010 Konsernet i i effektSelskapetflytendemed har å være hatteksponertrentemarkedet en positiv det i av langsiktigesine mellom tomtelån.utviklingå være Deten sammenheng synes rentenivå i godt fallende nytt rentenivå og og et tomter. Selskapet således av verdiutvikling har på på tomter verdiutviklingenog hvor tid tilhørende lånekostnaderen i lavere flere hvorvidt slike løpende vurderes værteiendomsprosjekter Det nedadgående. har avtaler skal inngås Selskapet er ikke eksponert for betydning. av valutarisiko Selskapet ikke eksponert er Konsernet en likviditetsbeholdning har tilstrekkeligkommersielle for erkjente som å møte forpliktelser.fremtidige tidKonsernet å ha en likviditetsreserve til søker enhver gir som fleksibilitetforhold i til uforut Property Group AS er eksponert mot konjunkturendringer i eiendomsmarkedet. konjunkturendringer i mot eksponert er Group AS Property Det tarfra tid legges prosjektene for ut salg boligene overtas til og salgene bokføres. for regnskapetfør i komme følgelig fra vil salgene ikke Regnskapseffektene 2010 av forfall2012. sine de nærmeste Group årene Property Hansa av ha på en del vil forpliktelser. For å sikre tilstrekkelig likviditet for å møteforpliktelsene arbeides det tilforhold medløpende løsninger i mulige refinansieringer,kapitalinnhenting, av salg samt

Det er per 31.12.2010 bokførte en ikke innkalt aksjekapital på MNOK 80 i Hansa Property Property Hansa Det 80 i er 31.12.2010 bokførte en ikke innkalt per aksjekapital på MNOK Group AS.aksjekapitalen Denne sin i ble helhet innbetalt januar i 2011. Dette øker antall totalt endres antall aksjer at millioner slik medaksjer 80 351 531 169 til 169 fra 271 531 eiendom.

A 100 10 . eidsmiljø likestilling arb og likestilling . . porteføljen består av seks større boligutviklingsprosjekter i Oslo området. boligutviklingsprosjekter Oslo seks i området. bestårstørre av porteføljen - r ved de salgener ved somgjort er 2010 vist i at gode Konsernet sitter på prosjekter regione n - teområdet som innbærer en viss håndtering av gammel forurensninggrunnen. håndtering gammel teområdet i en viss som av innbærer produkter avhengig markedets av etterspørsel. kombinasjonsbyggetHer vil forog NAV klart 2012 i boliger stå Oslo Hansa/Selvaag kommende konkreteforeliggerutvikleTil 2 000 boliger de over sammen det å planer om fordelt toårene. ca 640 boliger prosjekter330 boliger er på Disse i på Lørenplatået, på Nydalen i 500 boliger på Lillohøyden Oppegård,Kornmoenga 208 boliger på Mortensrud, i og 200 boliger på Bjørnåsen syd. Boligutviklingsselskapet eier Bolig 30% Selvaag AS av denne porteføljen Personal – og organisasjon Konsernet hadde per 31.12.10 til sammenansatte, 9 10 i hvorav morselskapet Hansa Property Group og 1 ansatt AS Tønsberg. i de ansatte på Kaldnes 3 av er kvinner. tillegg I felleskontrollerte Stavanger i AS er En 4 ansatteBo selskapet det det i en er hvorav kvinne. Styret fem består av medlemmer,menn. alle sittende Det styret på ekstraordinær valgt ble januar 2010. generalforsamling i Arbeidsmiljøetgodt. ikke å være Selskapet hatt anses langtids har sykefravær, og det er 2010. i eller ulykker skader ikke om rapportert har skjedd managementavtalendet med Boligfølge av Selvaag AS inngåelsen Som av funksjoner er en del ikke for av endringer oppbemanning og behovet administrasjonen, i særligRyggstillingenThomas overtok som Hannestad aktuelt. direktør administrerende i januar 2010 . fra 1. virkningKonsernet med miljø Ytre forårsaker eiendomsutvikling med minimalt som av Konsernets aktiviteterbestår forurensningforfør miljø ytre byggingstarter. det virksomhetenforegår Deler av på tom Arbeidet med forurensningdenne type gjøres fastlagtihht. prosedyrer myndigheter av og i disse. med nært samarbeid Konsernetmiljømessigmest er de løsninger som å benytte søker hensiktsmessige, både og energiløsninger materialer av gjelder valg når byggekonstruksjon, det Fremtidsutsikter innledningsvis erpresisereStyretknyttet betydelig normalt heftet til usikkerhet det vil at vurderinger fremtidige av forhold. HPRO ha som på sikt vil gi avkastning til sine eiere. Utfordringen er at HPRO de nærmeste årene vil vil de nærmeste årene HPRO til eiere. sine giat er sikt Utfordringen avkastning som vil på fratid ne gjøres salge Ettersom tar det forfall låneforpliktelser. sine og på ha relativt store bygging igangsettes til overlevering skjer ogkommer vil inn pengene HPRO en periode i likviditetsgap. ikke ubetydelig ha et

A 101 13 0 0 01.01- 31.12 2009 0 0 1 728 12 335 01.01- 41 022 -15 467 30 991 426 994 72 67088 32017 484 432 290 73 485 18 320 27 031 10 570 22 55653 547 90 172 517 166 -27 092 -3 544 -96 739 -96 601 -96 739 -96 601 -96 739-96 739 -96 601 -96 601 -96 739 -96 601 207 562 584 247 -112 993 -82 547 -123 831 -100 145 31.12 2010 (0,36) (0,28) (0,56) (0,44) Note 7 10 10 10 25 12 24, 26 27 360 47 818 18 8, 1816 37 868 28 167 19 19

Driftsresultat Personalkostnader resultatNetto fra tilknyttede selskap (TS) og felleskontrollerte virksomheter (FKV) Salg eiendommer av driftsinntekterAndre inntekterSum Kostnader solgte eiendommer Nedskrivninger varelager (eiendomsprosjekter) Avskrivninger driftskostnaderAndre driftskostnader Sum Finansinntekter Finanskostnader Resultat før skatt Skattekostnad Resultat etter skatt Tilordnet Minoritetsinteresser Morselskapets aksjonærer Totalresultat: Resultat etter skatt Årets totalresultat Minoritetens totalresultat andel av Majoritetens totalresultat andel av Resultat pr aksje Ordinært resultat per aksje (hele NOK) resultatUtvannet per aksje (hele NOK) Konsolidert resultatregnskap Konsolidert (Tall1000) i NOK 12

A 102 14 1 167 7 177 8 230 99 32765 497 96 129 94 84454 863 97 309 67 136 215 798 47 288 137 511 804 549 789 602 719 628 783 335 495 748142 417 454 564 101 235 1 034 158 1 259 706 1 838 708 2 049 308 31.12.2010 31.12.2009 7 9 9 9 12 12 747 10 10 10 14 4, 16 111 172 86 895 Note l i NOK 1000)l i NOK Eiendeler Anleggsmidler Immaterielle eiendeler - Leiekontrakter Utsatt skattefordel driftsmidlerVarige Investeringer i tilknyttede selskaper og felles kontrollerte virksomheter og felles kontrollerte virksomheter anleggsmidler Sum Omløpsmidler Varelager eiendomsprosjekter Varelager tomter Varelager ferdige bygg Kundefordringer og andre kortsiktige fordringer Kontanter og kontantekvivalenter omløpsmidler Sum eiendelerSum Andre langsiktigeAndre fordringer på tilknyttede selskaper langsiktigeAndre fordringer Konsolidert balanse (Tal

A 103 0 0 17 -349 -189 -475 2009 42 786 -54 840 -54 220 549 01.01-31.12 0 0 0 0 0 -91 -162 -164 2010 1 728 12 335 7 524 97 085 -4 672-4 655 -186 88 32013 667 73 485 29 535 17 597 92 026 363 172 28 042 574 -64 46 132 27 445 365 -21 12 015 10 570 54 863 215 798 -41 022-41 319 -27 709-27 361 -29 183-41 585-29 174 -29 080 -19 164-41 347 -65 215 798 178 191 -123 831-123 145 -100 -159 393-159 10 554 -153 199-153 179 -220 935-160 37 607 01.01-31.12 9 12 12 12 13 13 14 14 Note Resultat skatt før + Avskrivinger på anleggsmidler (Tall i(Tall NOK 1000) + Nedskrivning varelager + Nedskrivning aksjer i og FKV TS +/- Tilbakeført netto resultat og FKV TS fra +/- Netto renteinntekter og rentekostnader Tilbakeført - gevinst FKV salg av +/- Forskjell mellom resultatført pensjonskostnad og betalt premie +/- Endring i varelager +/- Endring i kundefordringer +/- Endring i annen kortsiktig gjeld +/- Endring i tidsavgrensningsposter andre = Netto kontantstrøm operasjonelle fra aktiviteter Kontantstrøm fra investeringsaktiviteter Utbetaling - selskap kjøp av driftsmidler Utbetaling - varige kjøp av Utbetaling - immaterielle kjøp av eiendeler Lån til - og FKV TS = Netto kontantstrøm investeringsaktiviteter fra Kontantstrøm fra finansieringsaktiviteter + Kapitalforhøyelser (netto) egne aksjer Kjøp - av Betalte - renter + Endring langsiktige andre forpliktelser + Endring annen langsiktig gjeld gjeld Nedbetaling - av Kontanter, kontantekvivalenter og kassekreditt starten perioden ved av = Kontanter og kontantekvivalenter desember 31. pr = Netto kontantstrøm finansieringaktiviteter fra + Mottatte renter endring = Netto i kontanter og kontantekvialenter Konsolidert kontantstrøm 0 0 16 -189 7 239 -9 289 -9 80 000 12 400 -96 601 -96 -96 739 -96 810 430 810 430 720 929 590 658 233 450 Sum egenkapital 0 0 0 0 interesser Minoritets- 0 0 -189 7 239 -9 289 -9 80 000 12 400 233 450 Sum Redusert med skatteeffekt Redusert med skatteeffekt . -96 601-96 601 -96 -96 739-96 739 -96 902 044 Annen egenkapital 9 061 450 028 810 430 7 239 9 061 450 028 810 430 -9 289 -9 16 299 353 288 720 929 11 904 573 549 521 -922 590 658 fond -567 104-567 567 104 Overkurs- Overkurs- -189 -189 -189 -189 Egne aksjer Egne 80 000 ikke ikke registrert registrert Kommitert Kommitert aksjekapital 496 271 531 80 000 271 531 80 000 271 531 80 000 939 629 233 450 -902 044 -902 Aksje- kapital Note 31.12.2010. Aksjeinnskuddet er bokført som annen kortsiktig fordring kortsiktig som og annen bokført som er Aksjeinnskuddet 31.12.2010. Kjøp av egne aksjer av Kjøp skatt etter Periodens resultat Egenkapital 31.12.2009 Egenkapital Periodens resultat etter skatt etter Periodens resultat Egenkapital 01.01.2010 Egenkapital emisjonskostnaderKorreksjon * 31.12.2010 Egenkapital Kapitalnedsettelse 18/2 Kapitalnedsettelse (Tall i NOK 1000) i NOK (Tall 01.01.2009 Egenkapital 2/3 Kapitalnedsettelse 2/3 Kontantemisjon innbetalt ikke Kommitert aksjekapital Kontantemisjon 2/6 Kontantemisjon skatt Emisjonskostnader, etter Hansa Property Group AS har MNOK 80 i kommitert aksjekapital som ikke er innbetalt eller kommitert er eller innbetalt aksjekapital ikke som 80 i har MNOK Group AS Property Hansa per registrert 7,2. MNOK overkursfondet korreksjon av 2,8 utgjør på MNOK kommitert 2011 og innbetalt ikkeaksjekapital. registrertble januar antall økte i Aksjekapitalen til 351 531 169. aksjer * har HPRO hatt en skattesakmeddrørende SkattekontoretOslo i ve fradragfor kostnader pådratt forbindelse i med etablering konsernet. av Tvisten gjaldt vurderingkostnadene om finansieringskostnader anskaffelseskostnader de var eller om kan direkte, fradras var som knyttet til tingsinnskuddsobjektet aksjene/eiendommene. må som på de ervervede aktiveres dissefinansieringskostnader, kostnadene 14 av var gjennomslagfått MNOK for harat HPRO anskaffelseskostnader som knyttet til 10 erMNOK men akseptert å betrakte at har tingsinnskuddsobjektet. er Konsekvensen at overkursfondet er tidligereav reduksjon tilbakeført 10 med MNOK og på tingsinnskuddsobjektet aktivert Endringerkonsernets egenkapital i

A 104 19 Special PurposeSpecial mater. Videre krever igger for investeringerkonsernet og mellom normalt der har 20% se oppnås normalt når konsernet har makt til å faktiskutøve kontroll over enhetens ities) der konsernet ogfinansielle ities) på enhetens innflytelse bestemmende operasjonelle der har Utarbeidelse av regnskap i samsvar med IFRS krever esti bruk samsvar IFRS i regnskap Utarbeidelse med av av av selskapetsanvendelse regnskapsprinsipper må ledelsen skjønn. utøve at Områderi som storgrad inneholder slike skjønnsmessige vurderinger, stor grad av kompleksitet, eller forkonsernregnskapet, forutsetninger erområder i vesentlige og estimater beskrevet hvor er note 4. 2.2 Konsolideringsprinsipper Det konsoliderte tilog årsregnskapetHPRO inkluderer enheter regnskapene har HPRO hvor ogbestemmendefinansielle enhetens over operative innflytelse strategi. Bestemmende innflytel fra aktiviteter. enhetens fordeler for å oppnå styring finansielle og operative nettokonsernregnskapeti eren Minoritetsinteressenes som av identifisert eiendeler andel konsernets av del totale egenkapital. interessene av Minoritetsinteressene på består starttidspunktet endringerminoritetens egenkapitalen av i fra og andel tidspunktet. Tap dette egenkapital minoritetensdatterselskapets allokeres i til minoritetenhenførtinteresse utover til majoritetens den grad i interesser ikke minoritetenforpliktelse har en til, og samtidig er i stand til å tapene. dekke a) Datterselskaper Datterselskaper erenheter foretak alle (inklusive formål - avgrenset med Ent stemmeberettigetkapital. av gjennomstrategi, mer enn halvparten Ved av eie normalt potensielle inkluderes foreligger effekten av innflytelse bestemmende det fastsettelse om av stemmerettigheterkan eller konverteres Datterselskaper utøves som på balansedagen. blir konsolidertfrakontroll tidspunkt deter konsernet overført konsolideringen til fra og blir utelatt når kontroll opphører. Oppkjøpsmetoden for benyttes regnskapsføring kjøp ved datterselskaper. av eiendeler som måles ytes som av ved Anskaffelseskosttil virkelig vederlag oppkjøp verdi ved kjøpet,forpliktelser pådratteoverføring utstedes, egenkapitalinstrumenterved som av kontroll og direkte kostnaderoppkjøpet. fomed selve rbundet Identifiserbare oppkjøpte eiendeler, overtattgjeld ogforpliktelser betingede overtatt eller pådratt regnskapsført er til minoritetsinteresser. eventuelle virkelig HPRO av uavhengig på oppkjøpstidspunktet, verdi kjøphar ved holdingsselskap av med eiendomsprosjekterkjøp som dette vurdert enkelt av får Merverdi ikke anvendelse. 3 derfor IFRS kjøp virksomhet. av som eiendeler, og ikke utover bokført på eiendeler verdi og eventuelle finansiellevirkelig av verdi derivater tilordn es relevante balanseposter. fortjenestemellom og urealisert Konserninterne mellomværende transaksjoner, på indikator som en vurderes elimineres, men tap konsernselskaper eliminert. er Urealiserte verdifall forhold i den overførte av til nedskrivning eiendelen. Regnskapsprinsipper i datterselskaper når dette endres for er nødvendig konsernets med å oppnå samsvar regnskapsprinsipper. minoritetsinteresser og b) Transaksjoner Transaksjonermed som minoritetsinteressertredjepart. transaksjoner med behandles Ved salg aksjer av datterselskap i til minoritetsinteresser,resultatføreskonsernetsgevinst eller tap. (TS) selskaper c) Tilknyttede Tilknyttede selskaper enheter er konsernet der har betydelig innflytelse, men ikkekontroll. Betydelig innflytelse forel 18 inkludert inkludert prosjekter med 130 000 m2, ca . regionen hovedsak, all i bolig. Totalt gjenværende mgår av beskrivelsen. mgår av eller deleide selskaper. Eiendomsporteføljen vil ogsåkunne vil Eiendomsporteføljen selskaper. eller deleide nsialet i alle prosjektenensialet alle i som både datterselskaper ligger i og tilknyttede ådet (Lørenskog og Tønsberg). Totalverdien Tønsberg). om (Lørenskogvar Totalverdien ådet lag og NOK 2,3 milliarder. standarder og fortolkninger som er utgitt frem til avleggelsen av regnskapet, og som fremfortolkningertil avleggelsenregnskapet, og som og standarder utgitt av er som - ammendrag av de viktigste regnskapsprinsipper viktigste av de ammendrag Selvaags portefølje Oslo i - ansa Property Group AS (”HPRO”, ”Selskapet” og ”Konsernet”) har som mål å eie, utvikle utvikle mål å eie, som ”Konsernet”) har og (”HPRO”, ”Selskapet” AS Groupansa Property Noter til regnskapet til Noter informasjon Generell 1. H 2. S de viktigsteNedenfor som beskrives utarbeidelsen regnskapsprinsippene er benyttet ved av konsernregnskapet. prinsippene Disse er perioder benyttet alle måteer i som på samme presentert, annet dersom freikke Basisprinsipper 2.1 og en differensiert selge utviklingsportefølje ulike segmenter eiendomsmarkedet innen av faserspredtgeografiske ulike utviklingssyklusen. i av områder på ulike og Nøkkelkompetanseneiendomsutvikling, er ogfor kunne verdier vil skapes aksjonærene fullført prosjekter,gjennom realiseringUtviklingsarbeidet er av eller delutviklet. når enten de gjennom primærtvil he l- skje salg. av påvente i videreutvikling eller av påvente forvaltningseiendommer, i inneholde enten erHPRO et aksjeselskap registrert og hjemmehørende Norge. i etablert Morselskapet ble 5. juni 2007 med etterfølgendekonserndannelse etablering ved datterselskaper av hhv. første 2007 sine kjøpte november i Selskapet 2007. september 26. 30. og august utviklingsporteføljer eiendommer,fire større lokalisert i Hordaland og Stavanger, i Østlandsomr prosjekteneovertakelse. 2008 ble av ved underNoen Sommeren var utvikling og oppførelse det gjennomført en emisjon og Selskapet benyttetprovenyet dels til å erverve en 70% andel av Som et restruktureringen i ledd solgte 2009 37,5% aksjene i HPRO av Bo i AS En til de tidligere Stavangerporteføljen. eiernebasis av aksjonæravtalen i Med eierneBo i mellom En felleskontrollert og bokføres porteføljen etter være en virksomhet konsernet å anses denne egenkapitalmetoden. Utviklingspote selskaper/felleskontrollerte virksomheter er 530 000 m2, på over fordelt på om lag 2/3 fleksibel regulering. prosjektene har av næringsprosjekter. Flere boligprosjekterresten og OTC Oslo i listen og ersom på notert Selskapet 22 Lørenvangen har i hovedkontor administreres Fondsmeglerforbund. av Norges for godkjentkonsoliderte er offentliggjøring vedtatt Det og i regnskapet2010 pr desember 31. 2011 . mars 30. styremøte den HPRO sittHPRO konsoliderte regnskap samsvarInternational eri med utarbeidet Financial Reporting Standards(IFRS)fastsatt som EU og av kraft trådt i 31. per samt desember 2010, de ytterligerefølger regnskapsloven som opplysningskrav norske av per 31. desember 2010. IFRS konsernet. av bruk i tatt 2010, ikke er per desember 31. anvende obligatoriskeikke er å Konsernregnskapet utarbeidet er historiskkost basert på prinsippetfølgende med finansielle forpliktelser derivater)finansiellemodifikasjoner; (herunder vurdert eiendeler og er resultatet. over til virkelig verdi utbyggingspotensialfor denne porteføljen er salgsstart i 2010 og byggestart i 2011 byggestart i og salgsstart 2010 i

A 105 21 et gjelderet og næringseiendomklassifiseres driftsinntekt, som annen og - oppkjøp har vært karakterisert vært har oppkjøp kjøp eiendeler, da hovedformåletav med som s . Inntektsføring levering. benytter fullført HPRO kontraktsmetode med fortolkningen basis i forbindelse i med boligsalg transaksjonstidspunktet, fra på innregnet Inntekter næringseiendommer er alle salg av når til krav inntektsføringløpende kangradmedoppfylt. av solgt en viss er Næringseiendom bli engasjement selger, av herunderforpliktelse en å til ferdigstille et bygg eller en leiegaranti på foreiendommen en periode. Konsernet innregner inntekten når det risiko vesentligste av og kjøper.til overført er for eiendommen kostnader tilhørende og inntekter b) Leieinntekter Leieinntekter fra bolig 2.5 Virksomhetssammenslutning 2.5 transaksjonene har vært å komme i besittelse av eiendomsprosjekter heller enn å kjøpe kjøpe eiendomsprosjekterheller enn å av besittelse komme i å transaksjonene vært har prosesser. egne eksisterende virksomhetmed dersom virksomhetssammenslutning det eiendomsprosjektersom Oppkjøp regnes av eksisterer input,At og output. prosesser det vesentlige eksisterer input (eiendomsprosjekter) når avgjørende d ikke alene eiendomsprosjektene) er av (salg eller utleie ogoutput inntektsføres leieperioden. over c ) Renteinntekter Renteinntekter resultatføres proporsjonalt samsvar i med tid over effektiv rente metoden. fordringer,fordringens balanseførte til gjenvinnbart nedskrivning verdi Ved reduseres av Konsernet hvorvidt kjøpet som være regnes vesentligemå virksomhetssammenslutning. også Det skal forretningsprosesser fortil stede en som vurdering skal sin regnes atHPRO etter oppkjøpet virksomhetssammenslutning.kjøper eiendomsprosjekter HPRO h ittil og har vurdert det slik at regnskapsføres strategiske aktiviteter selgers prosesser.man Kjøpene overtatt ikke har og 3 kommerkjøp virksomhet.kjøp enkelt IFRS derfor av derfor eiendeler heller enn av som ikke til anvendelse. skattforskjelligBehandlingener av kjøp virksomhet ved av (virksomhetssammenslutning) virksomhetssammenslutning utsatt skatt eiendeler. er en Ved av sammenlignetkjøp med eiendeler tillater av kjøp verdi Ved innregnet oggoodwill. som til nominell verdi overskytende ikke IAS 12 Inntektsskatt innregning av utsatt skatt er som knyttet ikke til virksomhetssammenslutning (IAS 12.15). er Derfor det utsatt ingen innregning av i skatt forskjeller merverdierfra opprinneligekonsernets på midlertidige balanse eller i datterselskapene. 2.6 a) Inntekt varerfor av salgetog vederlagetmottattkundefordringInntektenverdi av eller virkelig utgjør Driftsinntekter. IAS 18 med konsernet overensstemmelse i aktiviteter for i tjenester vanlige ReportingIFRIC Financial International (“the Interpretation utga Committee”) juli 2008 3. Estate”. gir Fortolkningen Real of Construction for the “Agreements fortolkningen 15 IFRIC forveiledningdet fast om skal avgjøres avtale bygging hvordan om er en av eiendom innenfor virkeområdet til IAS 11 Anleggskontrakter eller IAS 18 Driftsinntekter, og på hvilket inntekterIAS normalt 11 skal skal byggingen innregnes. Etter tidspunktfra inntekter innregnes løpende takt hjelp i avregningsmetode av ved fremdriften, med og IAS etter 18 skal inntekter fullført ved normaltkontraktsmetode, innregnes fullføring dvs. ved eller ved 20 . For tiden har Group Property Hansa all AS tap som oppstår ved betaling av slike oppstår betaling av transaksjoner, tap som ved - arked. eller underskudd i tilknyttederesultatføres tillegges selskaper i eller underskudd og en del av virksomheten som leverer produkter eller tjenester som eller tjenester som leverer produkter virksomheten som av en del - 100 % i hovedmannens regnskap. hovedmannens i % 100 ffelseskost. Regnskapsmessig behandling av indre selskap Regnskapsmessig behandling korporert og omregningpengeposter(eiendeler ved av og gjeld) årets utenlandsk i ved valuta slutttil kursenDersom resultatføres. anses på balansedagen, som valutaposisjonen . egenkapitalen i regnskapsførttap direkte gevinster og kontantstrømsikring er b) Transaksjoner og balanseposter b) Transaksjoner funksjonelle bruktil den valutaenTransaksjoner av ved utenlandskom i regnes valuta transaksjonskursen. Valutagevinster og avkastning de ulike dette i geografiske Somav en konsekvens opererer markedene. selskapet med kun geografisk ett m Løren (FKV) AS 2B erLøren i hovedmann 2B Indre Selskap.regnskap Indre selskaps er in Konsernets over av andel ikke balanseførtinvesteringene med av resultatførte andel av sammen verdi hvis dette underskudd medfører av andel resultatføreregenkapitalendringer. ikke Konsernet at balanseført av investeringen verdi (inklusive blir negativ usikredefordringer på enheten), konsernetharmedfor påtatt mindre forpliktelser seg eller avgitt garantier tilknyttede det selskapets forpliktelser. Konsernets urealisert av andel fortjeneste transaksjoner på konsernet mellom og dets tilknyttede elimineres. selskaper gjelderfor Det samme urealisertetap med mindre nødvendig vært har Der det den overførtetransaksjonen eiendelen. tilsier av en nedskrivning er de tilknyttede regnskapsprinsipper i for samsvar med endret selskaper å oppnå konsernets regnskapsprinsipper. (FKV) d) kontrollert virksomhet Felles kontrollertFelles virksomhetregulert økonomiskmellom er avtale to virksomhet eller ved virksomheten. felleskontroll over har disse at slik flere deltakere felleskontrollerte regnskapsføres egenkapitalmetoden. etter Konsernets virksomhet 50% av stemmeberettiget kapital. Investeringer i tilknyttede selskaper regnskapsføres etter egenkapitalmetoden. kjøpstidspunktet På regnskapsføres tilknyttede investering i selskaper til anska e) 2.3 utenlandsk Omregning av valuta presentasjonsvaluta og a) valuta Funksjonell Konsernregnskapetfunksjonelle presentert er erog både den valutaen NOK som i presentasjonsvalutaen til alle selskapene konsernet i 2.4 Segmentinformasjon Et ervirksomhetssegment er gjenstandfor risiko og avkastningforskjelligfra er som andre virksomhetsområder. Hansa Property Group definert har AS nåværende sin virksomhet til å ligge innenfor samme segment. ett således med segment og opererer Et geografiskmarked virksomheten(segment) er av som en del og leverer produkter gjenstandfortjenester somrisiko geografisk er avgrenset og avkastning et innenfor område som er forskjellig fra andre geografiske markeder. sinvirksomhet i til knytning til størrenorske byer ogdet er ikke vesentligforskjell risikoi og

A 106 23 netto” den perioden i de oppstår.fra Utbytte derivative finansielle eiendeler med faste eller bestembare finansiellefaste eiendeler medeller bestembare derivative 10 år 10 - - net kannet forpliktelse påta seg ovenfordet offentlige tanke med på utvikling av ndre de forfallerndremerenn 12 måneder de fall klassifiseresI balansedagen. etter så de som Kontorutstyr og inventar: 3 inventar: Kontorutstyr og Eiendelens gjenværende verdi og forventet levetid vurderes årlig, og justeres dersom vurderes justeres forventet dersom årlig, levetid og og verdi gjenværende Eiendelens nødvendig. eiendels En bokførte blir nedskrevet verdi umiddelbart til gjenvinnbart beløp er på salg tap Gevinster beløp.gjenvinnbart og overstiger verdi bokførte dersom eiendelens fastsatt vederlagetmed å sammenligne ved bokført ogmed netto verdi innregnet sammen er (tap)/gevinster resultatregnskapet.andre i Konser infrastruktur tilknytning i og lignende tileiendomsprosjekter. sine for slike Estimat utgifter balanseføres på reguleringstidspunktet for prosjektet. Når er eiendommen solgt, eiendommen av innregnet verdien bokførte en som er den kostnadsamme i som periode tilhørende inntekt er bokført, prinsippene av se beskrivelsen for inntektsføring. driftsmidler 2.8 Varige Varige kontormaskiner driftsmidler består av og inventar. Varige presenteres driftsmidler til anskaffelseskostfradragfor med Anskaffelseskost avskrivninger. inkluderer utgifter direkte knyttet til kjøpet av driftsmiddelet. Ytterligere utgifterinkludert bokførteer eiendelens i eller,verdi dersom det passer, e n som fordelen økonomiskefremtidige den det at antatt er men hvis egenseparat bare eiendel, knyttet vil til eiendelen tilflytekonsernet kan og utgiften måles pålitelig. Bokført av verdi eiendeler som er erstattet er tatt andre balansen. ut reparasjoner Alle av og er vedlikehold innregnetkostnad somsamme i er periode som påløpt.de Avskrivning er beregnet lineært følger: som forventet levetid økonomisk estimert over - eiendeler Immaterielle 2.9 kjøpte presenteres til består Leiekontraktene leiekontrakter. av Immaterielle eiendeler gjenværende leieperiode. anskaffelseskost over og amortiseres eiendeler Finansielle 2.10 Konsernetklassifiserer finansielle eiendeler i følgende kategorier:Til virkelig over verdi resultatet, finansielle eiendeler tilgjengelig for salg samt fordringer.utlån og Klassifiseringen hensiktenavhenger av med eiendelen.klassifiserer Ledelsen finansielle eiendeler første ved gangs innregning. resultatet virkelig verdi over eiendeler til a) Finansielle eiendeler klassifisert”finansielle av virkelig verdi Gevinstfra i endringer som eller tap eiendeler til virkelig resultatet”, over utbytte, verdi renteinntektmedtas inkludert og i resultatregnskapet ”andre under (tap)/gevinster - finansielle eiendeler til virkelig over verdi resultatet inkludert er andre i ntekter in når konsernets rett til utbytte fastslått.er fordringer og b) Utlån ikkefordringerUtlån og er betalinger ikke som et omsettes i aktivtklassifiseres De marked. omløpsmidler,med som mi 22 og byggeperioden. Andre utgifter er - og næringseiendommer. og - risen har sunket, eller dersomferdigstillelsefrem estimerte utgiftene har til de økt. risen sunket, har Disse estimatene har tatt hensyn til variasjoner i priser og utgifter direkte knyttet til hendelser knyttettil hendelser utgifter direkte til variasjoner hensyn tatt priser og i estimateneDisse har på slutten forholdene regnskapsperioden grad de bekrefter den i skjedd av avslutning etter regnskapsperioden.av til hvilket Estimater på nettotar realisasjonsverdi ogsåformål hensyn varelageret har. I den gradkonsernetfor premier betaler opsjon å beholde eller betaler på tomteområde for før tomteområde, presenteres HPRO dettetomt eiendomsrettengår i til over som konsernbalansen. beløp. Gjenvinnbartfremtidig er beløp estimert kontantstrøm med diskontert opprinnelig rente.effektive Etter resultatføres nedskrivning renteinntekter amortisert basertkostog på rentesats.opprinnelig effektiv utbytte fra Inntekt d) Utbytteinntekter resultatføres rettnår til å motta betaling oppstår. (eiendomsprosjekter) Varelager 2.7 driften vanlige i forknyttet til den salg ”Beholdninger”Etter eiendeler holdt IAS inngår 2 virksomheten, sliktfor produksjonsprosessenform i er for et eller en salg materialer eller utstyr brukt bli som produksjonsprosessen i skal utførelsen eller i tjenester, av varelager. i Videre omfatter varelageretkjøpt varerfor videresalg,tomter eiendommer eller andre holdt for videresalg. Konsernet er som ment harfor tomterog bygningereiendommer videresalg som av del en den vanlige driften, ogeiendommer byggeprosess i eller som er utvikling i for videresalg. nærmeste i selge formål å det kjøpt med utelukkende eiendommer for eksempel Dette er fremtidfor eller utvikling og er videre eiendelene klassifisert videresalg. Disse som varelager. for perioder. utleid kan også bli og bygninger Slike tomter Varelageret omfatter tomterkjøpt også formålfremtidig med om utviklingfor salg fast av og forkjøpt verdistigning Tomter bestemt.er som er om utviklingsplanene eiendom ikke selv planlagt solgt uten utvikling videre er klassifisert investeringseiendommer som i overensstemmelse IAS 40 ”Investeringseiendom”. med for Konsernet har tiden ingen investeringseiendommer. ferdige omfatterog Således varelager tomter, under utvikling eiendommer og utb ygging, bolig er bygg. Eiendommene netto anskaffelseskostrealisasjonsverdi. til Netto detVarelageret og av laveste bokført er knyttetsalgsverdi er forretningsdrift den estimerte til vanlig salgsprisen minus estimerte s algsomkostninger. kjøp,Kostprisen utgifterved er omfatter alle utgifter som utvikling på varelageret og andre forpådratt tiltilstand, å bringedets varelageret nåværende inkludertfor estimater fremtidig overskuddsdeling med eller selgere tomteområde selgerne aksjer av for av kjøpte selskaper. Utgiftene utviklingvarelageretutgifter ved knyttet av direkte inkluderer til bygging, som slik direkte lønnsutgifter. inkluderer De også en systematisk faste allokering av og variable byggeutgifteradministrative som påløpt utviklings i har inkludertfortil nåværende pådratt kostprisendersomvarelageret i de er bare bringe å tilstand.kanforekomme Det kostpris varelagerets at gjenvinnbart, ikke erfor hvis eksempel salgsp Estimater på nettorealisasjonsverdi er basert på den mest informasjonen pålitelige på tidspunktetfor estimatene,fastsettelse av den verdi varelageretforventet av er å innbringe.

A 107 25 seres som egenkapital. som seres t over låneperioden ved bruk av effektiv rentes metode. effektiv rentes av bruk låneperioden ved t over rs eller gjennomgårs eller restrukturering økonomisk ogmangler og utsettelser ved gå konku betalinger(forfaltmer enn 30 dager) medsom ansees indikatorerkundefordringer på at må nedskrives. Avsetningen mellom utgjørforskjellen pålydende oggjenvinnbart beløp, er som av nåverdien forventedekontantstrømmer, diskontert med rente. effektiv opprinnelig Bokført av verdi kundefordringene bruk ved en reduseres av avsetningskonto, avsetningen i endringer resultatføres driftskostnader. som kundefordring andre Når en blir den ført tapt, er mot avsetningskontoenfordringer.fortap på senere innbetalinger Eventuelle på tidligere tapsførte fordringer resultatføres mot andre driftskostnader. kontantekvivalenter og Kontanter 2.13 Kontanterkontantekvivalenter og består kontanter, av bankinnskudd, kortsiktige, andre lett omsettelige investeringer med maksimum tre måneders ogopprinnelig løpetid trekk på gjeld.kortsiktig under lån byggelån i inkludert byggelån. er balansen I overkurs og 2.14 Aksjekapital Ordinære klassifiaksjer Leverandørgjeld 2.15 Leverandørgjeld måles førstetil virkelig ved gangs verdi balanseføring. senereVed måling vurderes leverandørgjeld til amortisert rentekostfastsatt effektiv bruk av ved metoden. Hvis fakturabeløp. til opprinnelig leverandørgjeld innregnet renteelementet blir ubetydelig, er Lån 2.16 a) Lån påløpte gangs første innregning, netto til virkeliginkludert ved Lån innregnes verdi transaksjonsutgifter. Lån måles deretter til amortisertkost; mellomforskjell mottatt enhver (nettobeløp lånet transaksjonsutgifter) etter og innfrielsesverdien av innregnes i resultatregnskape klassifisertLån erkortsiktig ikke konsernetgjeld som hvis til en ubetinget rettå utsette har balansedagen. etter måneder forpliktelsen minst 12 i oppgjøret av b) Låneutgifter Låneutgifter direkte og/ellerknyttet til erverv bygging pågåendeutviklingsprosjekter av legges til kostprisen til disse eiendelene, frem til eiendelene er klare for deres påtenkte formål eller salg. andre Alle låneutgifter innregnes resultatregnskapeti den perioden i de påløper. Emisjonsutgifter som kan knyttes direkte til utstedelse av nye aksjerEmisjonsutgifterkan knyttes av direktenetto til utstedelse som etter innregnes mottatt emisjonsproveny. av reduksjon skatt en som 24 ktive 2.12). i balansen (note 2.11 og (note 2.11 balansen i derivative finansielle eiendelerderivative som man ” kostnad. - ut av egenkapitalen og regn skapsføres egenkapitalen resultatregnskapet.i av ut inntruffet for tap. Avsetning tap regnskapsføres når det foreligger kontrakterkvalifiserer ikkeforsikringsbokføring. Endringer virkelig i verdi kontanter og kontantekvivalenter raregning av finansielle eiendeler finansielle av raregning ” gangs balanseføring.fordringer Utlån og til amortisert regnskapsføres kost anleggsmidlene med mindre medhar ledelsen til hensiktanleggsmidlene å selge investeringen innen innregnes til virkelig på det balansen tidspunkteti verdi derivatkontrakten er konsernetforplikter seg til å kjøpe eller selge finansielle eiendelen.eiendeler Alle som 12 måneder fra balansedagen. 12 måneder c) Finansielle eiendeler tilgjengelig for salg eiendeler tilgjengelig c) Finansielle eiendelerFinansielle tilgjengeligfor salg er ikke klassifisert kategorienannen kategori.velger å plassere De ikke denne er noen eller som i inkluderes i metoden. effektiv rente bruk av ved disse derivatinstrumenteneav kvalifiserer som til sikringsbokføring ikke straks innregnet blir - finansinntekt eller netto resultatregnskapet i som med opprinnelige samsvar motta i konsernet oppgjør vil for objektive at ikke indikatorer betingelser. Vesentlige økonomiske problemer hos kunden,for sannsynligheten kunden at vil anleggsmidler. Utlån og fordringerklassifiseres som ”kundefordringer ogkortsiktige andre fordringer”, samt Innregning og f Vanligesalg kjøpinvesteringer regnskapsføresden av og på transaksjonstidspunktet,er som dagen ikketil virkelig resultatet, regnskapsføres over verdi førstegangtil virkelig balanseføres verdi pluss transaksjonskostnader. eiendelerføres Finansielle somtil virkelig resultatet over verdi anskaffelsen ogtransaksjonskostnader regnskapsføres resultatføres. til virkelig ved verdi Investeringerfjernesfra når balansen rettighetene til å mottakontantstrømmerfra investeringen opphørereller når disse rettighetene er blitt overført ogkonsernet hovedsak i eiendeler eierskapet.gevinstpotensialet ved Finansielle og risiko hele har all overført vurderes eiendeler til virkeligtil virkelig resultatet over verdi finansielle tilgjengeligfor og salg verdi etter første eiendeler finansielle av Nedskrivning finnes balansedag hver På indikatorerkonsernet vurdererobjektive tyder det som på om finansielle eiendeler. aksjer For grupper av eiendeler eller enkelte verdiforringelse av fall under for virkelig eller langvarigverdi etklassifisert i tilgjengelig betydelig som salg, vil eren indikator verdiforringet.objeanskaffelseskost slike aksjen på at Dersom være sikring og Derivater 2.11 Derivater forgevinstinngått, til virkelig løpende Metoden og tap måles å identifisere deretter verdi. og omavhenger derivatet av er et sikringsinstrument, og er dersom det sikring, type sikring som er inngått. Konsernets- swap 2.12 Kundefordringer måling senere gangstil første virkelig verdi. Ved balanseføring måles Kundefordringer ved vurderes kundefordringerkost til amortisert rente fastsatteffektiv bruk av ved metoden, fratrukket avsetning for indikatorerforeliggerfor finansielle eiendeler tilgjengelig fortas salg,samlede det tapet – målt anskaffelseskostmellom differansen virkelige som fratrukket eventuelt tidligere og verdi, resultatførte – nedskrivninger Verdiforringelse på aksjer og tilsvarende instrumenter ført i resultatregnskapet reverseres resultatregnskapetreverseres førttilsvarende instrumenter i Verdiforringelse og aksjer på ikkegjennomresultatregnskapet. note kundefordringer beskrives i på Nedskrivningstest 2.12.

A 108 27 føres konsernets risiko: markedsrisiko (inkludert mme fastsettesnatur, for sannsynligheten og finansieringsaktiviteter, til den henhold i og - entuelle økonomiskeentuelle fra insentiver kostnadsføres utleier), lineært over risikofaktorer måles til nåverdien av forventede av utbetalinger forpliktelsen.formåles til nåverdien å innfri Det som finanskostnad. at forpliktelsenat komme til vil oppgjør å ved vurderekonsernet ett. under for Avsetning knyttettil for om oppgjør sannsynligheten selv konsernet regnskapsføres lav. enkeltelementerkan være Avsetninger benyttes en diskonteringssatsfør skatt som reflekterer nåværende markedssituasjonog risiko forspesifikk forpliktelsen. Økningen forpliktelseni som følge av endret tidsverdi I tilfellerforeliggerflere det hvor forpliktelser sa av Leieavtaler 2.20 fortsatt knyttet ligger hos til eierskap risiko og avkastning vesentlig av derdel Leieavtaler en utleier,klassifiseres operasjonelle leieavtaler.ved operasjonelle avtaler Leiebetaling som (med fradrag for ev finansielle leieavtaler. harleieperioden. ikke Konsernet 2.21 Utbytte Utbyttebetalingertil selskapets klassifiseresaksjonærer gjeldsom fra medog tidspunkt det utbyttet fastsatter generalforsamlingen. av Kontantstrømanalyse 2.22 fordelerkontantstrømmer på konsernets seg Kontantstrømoppstillingen hvordan viser kontantstrømfra operasjonelle, investerings risikostyring 3. Finansiell e 3.1 Finansiell 1000) (Tall NOK i Konsernets aktiviteter medfører typer ulike finansiell valutarisiko, virkelig renterisiko, verdi flytende rente risiko og prisrisiko),kredittrisiko og likviditetsrisiko.fokuserer Konsernets kapitalmarkedenes overordnede risikostyringsplan på uforutsigbarhetforsøker å minimalisere negative og effektenekonsernets de potensielle på finansielle resultater.forkonsernet Risikostyringen en sentral ivaretas av finansavdeling i overensstemmelse med retningslinjer godkjent av styret. indirekte metoden. Kontanter og kontantekvivalenter omfatter kontanter, bankinnskudd og kontanter,indirektekontantekvivalenter bankinnskudd Kontanter og metoden. omfatter og andre kortsiktige, plasseringer likvide umiddelbart ogmedkursrisiko som uvesentlig kan konvertereskjente til kontantbeløpforfallsdato og med tre korterefra enn måneder anskaffelsesdato. Mottatte renter klassifiseres som investeringsaktiviteter og betalte renter klassifiseres som finansieringsaktiviteter. tt ed 26 alinger til Konsernet har Konsernet har e fremtidige innbetalinger.e finansiert gjennom innbet og er rasjon, og som på transaksjonstidspunktet verken lene kan fratrekkeslene i denne inntekten. i konserneti har innskuddsplaner. selskapene eller skattemessigresultat,eller blir den ikke balanseført. skatt Utsatt Alle . - Det eksisterer en juridiskselvpålagt forpliktelse eller følge som tidligere av ) Sluttvederlag 2.17 Betalbar og utsatt inntektsskatt utsatt og Betalbar 2.17 ingen ytterligereinnskuddene betalingsforpliktelser etter blitt Innskuddene er at betalt. regnskapsføres lønnskostnad som forfaller. når de Forskuddsbetalte innskudd bokføres som eller reduserrefunderes kan grad innskuddet den i en eiendel b Sluttvederlag blir betalt når ansettelsesforhold konsernet avsluttesfør av det normale tidspunktetfor pensjonering, eller nårfrivillig en ansatt aksepterer slutte å mot et slikt forpliktet å til enten vederlag. er regnskapsfører beviselig sluttvederlag det Konsernet når avslutte til arbeidsforholdet dagens til en formell, henhold i arbeidstakere detaljert som plan konsernetkan tilbake, ikke trekke eller til å gi sluttvederlagfølge som et tilbud som av er gi Ved innskuddsplaner,Ved konsernet betaler til offentlig innskudd administrerte eller privat frivillig eller basis. forsikringsplanerfor obligatorisk,avtalemessig på pensjon forsikringsselskaper forfrivillig 12 månederforfalleretter til å oppfordre mer en Sluttvederlag avgang. som til nåverdi. balansedagen diskonteres Skattekostnaden er beregnet i samsvar med de skattemessige lover og regler som er er som og regler de skattemessige lover med samsvar Skattekostnaden i beregnet er balansedagen. vedtatt på skattemyndighetene vedtatt, av hovedsak eller i Det er beregnet utsatt skatt midlertidige på alle forskjeller skattemessige mellom og gjeldsmetoden. gjeld,av bruk eiendeler og ved konsoliderteregnskapsmessige verdier på Dersom utsatt skatt oppstår første ved gangs en gjeld av balanseføring eller eiendel i en foretaksinteg en er transaksjon, ikke som påvirker regnskaps og andre kompensasjonsordningeroverfor ansatte Pensjonsforpliktelser 2.18 a) Pensjonsforpliktelser Selskapene konsernet i har lik pensjonsordning Avsetninger 2.19 Konsernet regnskapsfører avsetninger for miljømessige utbedringer, restrukturering og rettslige krav når: forpliktelsenforhendelser, sannsynlighetsovervekt erkomme at til det oppgjørform av vil i forpliktelsenskan m estimeres ressurser størrelse økonomiske og en overføring av fastsettes bruk ved skattesatser av og skattelover som er det vedtatt eller i alt vesentlige er vedtatt på balansedagen, og som benytteså skulle antas når den utsatte skattefordelen gjøres opp. utsatte skatten realiseres den eller når skattbarfremtidigUtsatt sannsynlig atgrad er inntekt skattefordeldet vil den balanseføres i forskjel midlertidige de foreligge, at og tilstrekkelig pålitelighet.gradfor restruktureringskostnader av Avsetningomfatter for avsettes til ansatte. Det sluttvederlag ikke termineringsgebyr på leiekontrakter og driftstap. fremtidige Utsatt skattpå midlertidige beregnesforskjeller fra datterselskaperog investeringer i tilknyttede selskaper,frakontroll bortsetthar tidspunktetkonsernet over når for reversering de midlertidige av forskjellene, og deter sannsynlig atbli de ikkereversert vil overskueligi fremtid.

A 109 29 Sum Sum 2009 43 300 284 549 1 117 779 Konsernet Konsernet - - 1-5 år >5 år 1-5 år >5 år 2010 60 % 56 % 720 929 810 430 189 705 189 705 989 151 989 151 1 117 779 1 238 878 1 783 845 1 833 509 1 062 916 1 023 079 6-12 6-12 måneder måneder 0-6 0-6 84 096 2 827 7 920 94 843 25 484 17 816 5 000 5 000 75 328 85 328 84 096 2 827 197 625 30 484 22 816 1 064 479 måneder måneder onsernet kan utstede nye aksjerkanfor onsernet nye utstede eiendeler eller selge å K . MNOK 80 i uinnkalt innbetalt 80 i 2009 ble MNOK i i . aksjekapital emisjonen etter er kapitalsituasjonener følgende: til enhver tidtil enhver å ha en likviditetsreserve som girfleksibilitet forhold i til uforutsette 31.12. Finansiell gearing Total gjeld Justert totalkapital Redusert for kontanter, og plasseringer bank (Note 14) gjeld Netto -54 863 -215 798 Total egenkapital Langsiktig fordringer TS inkl og FKV Kundefordringer og andre fordringer og annen kortsiktigLeverandørgjeld gjeld til kredittinstitusjonGjeld og annen langsiktig gjeld Avsetning for forpliktelser Gjenværende løpetid finansielle eiendeler Forfallstidspunkt finansielle eiendeler forAvsetning andre forpliktelser Gjenværende løpetid finansielle forpliktelser c) Likviditetsrisiko søkerHPRO å ha en likviditetsbeholdning tilstrekkeligfor er som kjente kommersielle å møte fremtidige forpliktelser januarhar Selskapetsikret likviditet med 2011. gjennom dette 2011. løpende søker hendelser og prosjektene av timing markedet. i er Selskapet eksponert mot konjunkturendringer eiendomsmarkedet. i lånevilkårForfallsstrukturtabellen nedenfor reforhandlede i basert på langsiktigei er lån 2009. 1000) (Tall NOK i 3.2 Kapitalforvaltning (Tall1000) i NOK PropertyforvalteHansa kapitalen Group skalen måte driften løpende sikrer på at som den forskaper og andre verdier aksjonærer interessenter.for Kapitalstrukturen søkes optimalisert å redusere kapitalkostnaden. redusere gjeldsgraden. Pr 28 og og - r per ielle derivater. ielle te gir kontantstrømrisiko Finans 50 100 150 50 100 150 og av næringsbygg utføres - og leiekontrakter- på bolig 7 836 15 673 23 509 7 172 14 345 21 517 og prosjektverdier og rentenivået. - bankinnskudd og gjeldsposte og virkelig verdi risiko - og foretattkredittsjekkkundene. leiekontrakter blir De det en av - yggekostnadene. bolig Oppføring av ontantstrøm og inntektssiden er i norske kroner. inntektssiden heller ingenog er Konsernet norske har eiendeler i norsk eiendomsutviklingsselskap med fokus eiendomsutviklingsselskap norsk med på utviklingsprosjekterog - t og prosjektverdier har vært fallende. vært har og prosjektverdier følger opp renterisikoen gjennom sensitivitetsanalyser på løpende basis. gjennom sensitivitetsanalyserrenterisikoen basis. følger på løpende opp . Analysen .viser Analysen effekten på kontantstrømmen. I beregningen av total gjeld er og motpartsrisiko følges opp på konsernnivå. Konsernet blir eksponert for - r gjeld som skal omregnes til norske kroner. til norske skal omregnes r gjeld som Valutarisiko Effekt på kontantstrøm (NOK 1000) 2009 Justering av rentenivået i basispunkter 2010 Justering av rentenivået i basispunkter Effekt på kontantstrøm (NOK 1000) Konsernetsrenterisikofølge opptaklangsiktig gjeld. oppstår som av rentebærende Den langsiktigegjelden flytende rente vesentlige er det basert i på og det Sensitivitetsanalyse erSensitivitetsanalyse gjennomført på rentebærende forkonsernet. følges Renterisikoen opp gjennom sensitivitetsanalyser på basis. løpende Det å synes være en korrelasjon tomte mellom utvikling- på Konsernetfordel har hatt av et fallende rentenivå og betalbare lånekostnader et i marked tomtehvor - Pr 31.12.2010konsernet har sikretav eksponeringen en del knyttet til gjeldflytende med note i 8 beskrivelse gjennomrentebytteavtaler. nærmere Se rente – Selskapet andel av gjeldfelleskontrollert av selskaperandel tilknyttede i og virksomhet medregnet, ettersom konsernetfinansieremå normalt av andel sin virksomheten disse selskapene. i Konsernet følgendeharfor sensitivitet endringer rentenivået påvirke i potensielle som vil kontantstrømmen: b) Kredittrisiko Kreditt eiendommer. portefølje Konsernets består utviklingsprosjekter nå utelukkende av Norge, i og både kostnads næringsbygg det i markedet. norske kostnadssiden er På konsernet hovedsak i eksponert mot utviklingen i b a) Markedsrisiko (i) HPRO er e elle (ii) Prisrisiko bolig av Konsernet eksponertog leie salg mot på inntektssiden prisutviklingen er på entreprenører.fastpriskontrakter er Entreprisene med Norsk basis i Standard. Entreprisekostnadene konjunkturutviklingen av avhenger byggebransjen. i Konsernet er lønninger. og materialkostnader utviklingen i eksponert videre mot (iii) Renterisiko – k 31.12.2010 motpartsrisiko gruppen i selskaper inngår salgs når næringsbygg. Konsernet er eksponert videre gjennom bankinnskudd. vesentlige Gruppens godkredittratingmed anses lav. bankersom bankinnskudd i risikoen at slik plassert denne er salgs inngåelseVed av sammegjelder også rutinenfore kontrakter inngåelsemed av entreprenører. Risikoen på knytterleverandørsiden konsekvenserseg til potensielle negative fremdrift på prosjekter i som følge hos av problemer entreprenør.

A 110 31 Sum Sum 5 311 68 390 37 988 224 313 764 838 284 549 54 863 495 748 835 160 over over over 16 938 16 938 resultatet resultatet Eiendeler vurdert til vurdert til - Forpliktelser virkelig verdi virkelig verdi kost) kost) 5 311 Andre Andre 68 390 37 988 224 313 764 838 Utlån og fordringer (Amortisert (Amortisert (Amortisert finansielle forpliktelser 284 549 54 863 1 100 841 16 938 1 117 779 for av fastsettelsebeskrivelse av virkelig verdi, TS og FKV (EK-metoden) 495 748 495 748 339 412 Investeringer i Kundefordringer og andre fordringer Kontanter og bank Sum Rentebytteavtaler Sum Pr 31. desember 2010 Eiendeler Investeringer i TS og FKV Forpliktelser langsiktigeAndre forpliktelser langsiktigAnnen gjeld til kredittinstitusjonerGjeld Leverandørgjeld kortsiktigAnnen gjeld Det eneste HPRO har av finansielle instrumentertil virkelig resultatetDetmåles harover enestesom av verdi HPRO er to rentebytteavtaler.til noteDet vises 8 samt opplysninger over føringer mot resultatet i løpet av 2010 . føringer av mot resultatetløpet over i samt opplysninger 6. Finansielle instrumenter etter kategori etter instrumenter Finansielle 6. (Tall1000) i NOK Følgendeforetterfølgende prinsippermåling finansielle harfor instrumenter av blitt anvendt balansen: finansielle i instrumenter 30 produktereller tjenester som deringer fremføring. Utsatt skattefordel er i i er skattefordel Utsatt fremføring. som som er gjenstand for risiko og avkastning og det er ikke vesentlig forskjell i risiko og forskjellog og ikkerisiko vesentlig i er det , r definisjon sjelden være fullt ut i samsvar med med fullt utr være samsvar sjelden definisjon i selskapets ledelsesrapportering. selskapets geografiskmarked virksomheten(segment) er av som en del og leverer produkter sikofor vesentligebalanseført i endringer på eiendeler og verdi gjeld løpet i av neste ) skattefordel Utsatt avkastning de ulike dette i geografiske Somav en konsekvens opererer markedene. selskapet med kun geografisk ett marked. Inndelingen gjenspeiler 4. Viktige regnskapsestimater og skjønnsmessige vur skjønnsmessige og regnskapsestimater Viktige 4. Estimater og skjønnsmessige vurderinger evalueres løpende og er basert på historisk historisk på basert er og vurderingerløpende evalueres Estimater skjønnsmessige og erfaringfaktorer, forventninger og andre og inklusive fremtidige som hendelser anses å være omstendigheter. sannsynlige under nåværende Konsernet utarbeider estimater og gjørforutsetninger /knyttet antakelser til fremtiden. De p e følgerregnskapsestimater dette vil av som det endelige utfall. Estimater og antakelser/forutsetningerrepresenterersom en betydelig ri regnskapsår, drøftes nedenfor. på prosjekter a) Verdiutvikling foretarHPRO vesentlige skjønnsmessige vurderinger knyttet til eiendommenes verdi. Som et regnskapsavleggelsen i ledd vurderes netto salgsverdi opp motkonsernetskostpris. verdien beregne eksterne forbehov eller å underbygge verdsettere Konsernet benytter ved på eiendommene. makroøkonomiske ulike mange av avhengig er salgsverdi Fremtidig forutsetninger må selskapet som estimere.I tilleggforeta må selskapet vurderingerknyttet til fastsettelsenav fra av en del myndighet som reguleringergodkjenninger offentlig og verdiene. b 5. Segmentinformasjon leverer virksomheten som av er en del Et virksomhetssegment er gjenstandfor risiko og avkastningforskjelligfra er som andre virksomhetsområder. Hansa Property Group definert har AS nåværende sin virksomhet til å ligge innenfor samme segment. ett således med segment og opererer Et tjenester innenfor et avgrenset geografisk , område somforskjellig erfra For geografiskemarkeder. tiden andre har Grou Property Hansa p AS all virksomhetsin itil større tilknytning byer norske sin helhetsin oppført fordi balansen i detkonsernets etter vurdering er sannsynlig at posisjonen fremtidige mot overskudd. kan utnyttes Utsatt skattefordel består hovedsakelig underskuddav til

A 111 0 3 3 0 -9 15 AS 33 828 48 118 Hansa Hansa etter Selvaag Selvaag høyden AS Bo Emmaus Emmaus Bo Mortensrud- 0 0 0 29 95 111 318 318 3 822 44 923 2 139 -2 744-2 2 456 16 678 2 241 58 964 15 938 Hansa Hansa Selvaag Selvaag Hebo AS Løren AS 5 0 0 0 0 0 28 32 106 230 40 11 12 2032 330 424 123 233 -29 717 850 Balanseverdiene er er Balanseverdiene Næring Admini- Løren 2B Løren 2B stra sjons- bygget AS 0 0 0 0 0 27 13 -19 -19 -19 AS 474 461 474 AS/IS 13 288 Holmen Løren 2B Løren 2B Parkering 0 rksomheten. 60 92 -253 AS AS 387 -5 262 -5 Hansa Hansa Selvaag Selvaag Løren 2B Løren 2B Aase Gaard Gaard Aase 0 67 AS 280 149 254 700 382 -961 -175 -1 147-1 4 658 56 980 28 548 86 815 33 257 27 034 1 735 59 781 31 522 Hansa Hansa 143 095143 795 61 423 61 805 Selvaag Selvaag Lillohøyden AS Jaasund 0 0 0 0 0 0 0 0 0 0 0 AS Sum 3 007 1 933 1 259 -2 146 -2 65 949 22 600 41 022 78 470 Hansa Hansa Lervig Brygge Brygge 495 748 694 674 773 144 209 037 Selvaag Selvaag Utvikling 1 268 892 1 059 855 Kornmoenga av aksjene. Merverdier som skal amortiseres, fratrekkes 0 6 0 0 -3 74 13 13 88 73 15 210 -204 bygg bygg 4 525 80 952 219 045 4 367 53 549 2 870 178 811 69 947 Stord Stord 37 207 40 424 89 457 244 979 9 635 55 744 2 881 195 489 72 188 30 150 67 046 176 357 10 707 23 333 1 315 134 386 55 422 35 900 8 506 25 934 5 268 2 195 30 35910 065 68 979 177 616 20 479 11 094 67 363 36 621 459 -1 19 123 2 032 136 525 56 250 Hansa Hansa Lervig Industri- Selvaag Selvaag Syd II AS Syd Bjørnåsen Bjørnåsen Brygge AS Holding AS erverv 0 0 0 0 -8 47 97 51 294 49 97 966 3 153 324 -35 8 067 2 421 3 193 2 085 1 299 8 139 92 575 1 553 25 753 6 586 66 822 Stord Stord ved 12 425 41 892 128 645 47 347 31 249 32 548 79 895 17 469 10 44850 031 212 300 221 220 62 426 Hansa Hansa 39 583 8 919 : Holding Industri- Selvaag Selvaag bygg AS bygg Bo En AS etter samme prinsipper som for prinsipperkonsolideres, som selskaper som samme etter og inneholder Beløpene erBeløpene inkludert konsernets i balanse og resultatregnskap . Årsresultat Driftskostnader Salgsinntekter Driftskostnader Årsresultat Netto eiendeler Netto Salgsinntekter Kortsiktig gjeld eiendeler Netto Gjeld Langsiktig gjeld Sum gjeld Sum gjeld Sum eiendeler Sum Kortsiktig gjeld Gjeld Langsiktig gjeld Omløpsmidler eiendeler Sum Driftskostnader Sum gjeld Årsresultat Omløpsmidler Omløpsmidler eiendeler Sum Gjeld Langsiktig gjeld Kortsiktig gjeld Eiendeler Anleggsmidler Netto eiendeler Netto Salgsinntekter Eiendeler Anleggsmidler Eiendeler Anleggsmidler Beløpene underBeløpene viser konsernetsrespektive eierandel av eiendeler og gjeld samt salg av og felleskontrollerte den investeringen i resultat av vi egenkapitalmetoden omarbeidet merverdier etablert resultatet 32 T ype T ype investering investering Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Datterselskap Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert Felleskontrollert HPROs HPROs HPROs HPROs 50%/70%50%/70% Felleskontrollert 50%/70% Felleskontrollert Felleskontrollert 50%/70%50%/70% Felleskontrollert 50%/70% Felleskontrollert 50%/70% Felleskontrollert Felleskontrollert stemme-andel stemme-andel 100 % 100 % 100 %100 % 100 % 100 % 100 %100 % 100 % 100 % 100 %100 %100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 62,5 % 50 % 70,0 % 70,0 % 70,0 % 62,5 %62,5 %62,5 % 50 % 62,5 % 50 % 62,5 % 50 % 31,3 % 50 % 31,3 % 50 % 25 % 25 % 66,0 %66,0 % 50 % 70,0 % 50 % 70,0 % 70,0 % 70,0 % 49,9 %49,9 %49,9 % 49,9 % 49,9 % 49,9 % eierandel eierandel HPRO sin HPRO sin Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Oslo Stord kontor kontor Hoved- Hoved- Dato for stiftelse Dato for stiftelse oppkjøp / oppkjøp oppkjøp / oppkjøp 26.09.2007 23.11.2007 13.12.2007 13.12.2007 28.11.2007 Stavanger 11.04.2008 11.04.2008 11.04.2008 23.11.2007 23.11.2007 06.06.2008 28.11.2007 Stavanger 28.11.2007 Stavanger 28.11.2007 Stavanger 28.11.2007 Stavanger 28.11.2007 Stavanger 28.11.2007 Stavanger 28.11.2007 Stavanger 28.11.200703.05.2010 Bergen Bergen 04.05.2010 30.06.2010 21.09.2010 01.07.2010 28.11.2007 30.06.2008 23.11.2007 23.11.2007 23.11.2007 13.12.2007 11.04.2008 11.04.2008 11.04.2008 30.08.2007 23.11.2007 numme r numme r 992 587 490 979 903 154 992 075 481 991 680 276 992 913 096 988 675 962 989 347 365 989 347 292 987 579 684 988 714 615 987 634 170 989 047 663 991 300 805 995 428 571 995 980 819 988 387 770 993 088 633 990 212 929 986 960 589 971 589 019 992 075 430 992 075 457 992 587 466 992 587 482 991 680 225 991 776 087 886 736 312 988 369 764 990 732 000 Organisasjons- Organisasjons- sa Property sin Group AS eierandel datterselskap, i felleskontrollert virksomhet og Investering i datterselskap, felleskontrollert virksomhet og tilknyttede tilknyttede og virksomhet felleskontrollert datterselskap, i Investering Lørenskog Sentrum Vest AS Kaldnes K4 AS Kaldnes Forretningsbygg AS Lervig Brygge AS Jaasund AS Aase Gaard AS Holmen Parkering AS Administrasjonsbygget AS AS Hebo Bo Emmaus AS Stord Industribygg AS Stord AS Industribygg Holding 995 507 552 Hansa Selvaag Kornmoenga ASHansa AS Selvaag Mortensrudhøyden 2B (hovedmann AS Løren i IS) 892 587 752 2B AS Næring Løren 2B IS Løren 995 709 856 Vestparken AS Vestparken AS Næring Skårer Bolig AS Kaldnes Brygge Syd AS Kaldnes Byutvikling AS Kaldnes K2 AS Kaldnes K3 AS ASHansa Selvaag Lillohøyden Hansa 2B Selvaag AS Løren Hansa 5 AS Selvaag Løren ASHansa Selvaag Bjørnåsen Syd II 992 587 431 992 587 725 Scandinavian Invest 1 AS Hansa AS Selvaag Holding Bo En AS Sjølyst Eiendom AS Scandinavian Invest 1 AS H-Pro 5 AS 5 H-Pro HPG Vest AS AS 5 H-Pro HPG Vest AS Selskap Selskap HPG Øst AS HPG Øst AS For investeringerfelleskontrollert i virksomhet stemmeandel sin HPRO hvor er markert med 50%/70%, eksisterer aksjonæravtaler som regulerer vesentlige avtalerettslige forhold mellom styret(dermedforholdene i partene. disse vesentligehar være enstemmighet For skal det reeltHPRO 50% stemmeandel). Forforhold, øvrige stemmer de felles deltakerne i eierandeler.kontrollerte tilsvarende sine virksomhetene 7. selskap (Tall1000) i NOK Han tilknyttede selskap.

A 112

35 området området ik mellom 5 464 26 089 13 448 17 971 ffelse og netto ffelse netto og 33 960 127334 89 470 523 116 799 271 2010 2009 2010 2009 1 454 40 096 1 429 31 360 80 000 7 920 94 844 67 136 47 28811 976 137 511 4 149 142 417 101 235 284 549 305 881 189 705 238 746 inneholder nedskrevne eiendeler. inneholder nedskrevne eiendeler. , margin. bortsett fra ku ndefordringer , . Porteføljen er sammensatt av utviklingseiendommer som befinner seg i ulike 00 .befinner Porteføljen erutviklingseiendommer ulike sammensatt segi som av 3 . Varelager / tomter / tilvirkningskontrakter / tomter / Varelager . NOK 2 0-30 dager 30-60 dager 60-90 dager Over 90 dager Total Netto kundefordringerNetto Opptjent fakturert ikke inntekt på prosjekter Til gode offentlige avgifter langsiktigeAndre fordringer TS og FKV Ikke innbetalt selskapskapitalIkke Redusert for langsiktige fordringer KortsiktigeSum fordringer Andre kortsiktigeAndre fordringer TS og FKV langsiktigeAndre fordringer kortsiktigeAndre fordringer Total Kundefordringer fordringer og Andre Maksimal eksponering forkredittrisiko eksponeringMaksimal virkelig på rapporteringstidspunktet av verdi er angitt ovenfor. kundefordringersom MNOK 1 009 på 100MNOK % basis. porteføljen Denne er tomter sammensatt av Oslo i - ndomsprosjekter Verdivurdering eie konsernets av første sine I AS november 2007 overtokfor Group Property Hansa utviklingsprosjekter ca M forfaser potensial verdikjeden med til bolig av (ca utvikling 7 0 %), næring, og handel offentlige formål. I juni 2008 overtok Property Hansa seks Group eierandel i 70% AS tomteutviklingsselskaper forfra priset 366.til var Prosjektutvikling Selvaag AS Eiendomsporteføljen MNOK forutvikling til boligformål. som potensial har konsernetHPRO til IFRS henhold i behandler tomtearealer og byggeprosjekter som kostpris verditil varelager, laveste anska målesav og varelageret ved realisasjonsverdi. Realisasjonsverdien reflekterer verdien av eiendelen ved ordinærrealisasjonsverdi. ved eiendelen reflekterer Realisasjonsverdien av verdien før tilstedeværelse en villig kjøper ikkeav nødvendigvis virksomhetkrever og utviklingsprosjektet er klartfor salg. I dagens markedkanforekomme det avv markedsverdi ogrealisasjonsverdi, grunnet få kjøpere aktive av tomter eller Aldersfordeling kundefordringer følge er som r: 10 Virkelig verdi av kundefordringer og andre fordringer:kundefordringer og andre Virkelig av verdi Virkelig til av lån verdi nærstående parter erå diskontere beregnet ved kontantstrømmer med NIBOR tillegg rente lik med for en risikoveid Ingen av eiendelene ovenfor eiendelene Ingen av 34 påvirke Virkelig 338 5 464 verdi -8 736 -9 788 -9 450 17 971 -4 002 -16 938 -17 276 Virkelig -12 936 -16 938 31.12.2010 -25 523 116 799 271 2010 2009 1 454 40 096 1 429 31 360 31. følgende:31. desember 80 000 7 920 47 28811 976 137 511 4 149 94 844 67 136 142 417 101 235 284 549 305 881 189 705 238 746 inger om rentenivå. inger om n Sluttdato 28.06.2013 29.06.2012 50 100 150 sats 1 500 3 000 4 500 Rente- stol Hoved- 200 000 5,73 % 100 000 5,52 % 300 000 Hovedstol, løpetid og faste rentesatserfaste pr utgjør og Hovedstol, løpetid . Finansielle derivater Finansielle . . Kundefordringer andre og fordringer Avsetning tap på fordringer Opptjent fakturert ikke inntekt på prosjekter innbetalt selskapskapitalIkke Kundefordringer kundefordringerNetto langsiktigeAndre fordringer TS og FKV Til gode offentlige avgifter Sum KortsiktigeSum fordringer Andre kortsiktigeAndre fordringer TS og FKV langsiktigeAndre fordringer kortsiktigeAndre fordringer Total Kundefordringer og andre fordringer Redusert for langsiktige fordringer Netto resultateffekt rentebytteavtaler 2010 i Endring i balanseført verdi rentebytteavtaler i 2010 rentebytteavtalerAvregninger 2010 av i løpet Virkelig verdi 31.12.2010Virkelig Effekt på kontantstrøm (NOK 1000) Motpart DnBNOR Markets resultateffekt av rentebytteavtalerÅrets verdi 31.12.2009Virkelig Justering av rentenivået i basispunkter DnBNOR Markets Totalt 8 (Tall1000) i NOK Selskapet har sikret en andel av eksponeringen knyttet til gjeld med flytende rente gjennom gjennom eksponeringenflytende rente medknyttet av til gjeldandel Selskapet sikret en har rentebytteavtaler. 9 (Tall1000) i NOK Virkelig verdi av rentebytteavtalene fastsettes fremtidigeVirkelig rentebytteavtalene kontantstrømmer av av nåverdien som verdi kvoterte markedsforvent estimert neddiskontert på basert og 2. rentebytteavtalene nivå basert av på er verdi forfølgende endringerKonsernet sensitivitet som har rentenivået i potensielle vil kontantstrømmen knyttetkontantstrømmen til rentebytteavtalene:

A 113 37 2009 2009 åhusbebyggelse åhusbebyggelse ca 2500 m2 kontor et i nytt

av 000 m2 000 000 m2 Lillohøyden, Løren,Lillohøyden, og Kornmoenga Bjørnåsen Syd, – og båtplasser og 000 m2, hvorav bolig utgjør ca 130 000 m2 130 000 bolig ca utgjør m2, hvorav 000 - . spredning spredning kommer først prosjektet som er et sjønært område i Sola regulertSola til sm område i er sjønært prosjektet et som aper, hvor HPRO indirekte eier 70% og 30% er eid av Selvaag Bolig AS. Bolig Selvaag AS. er av eid og 30% indirekte 70% eier HPRO aper, hvor tvikling på 60 000 m2 med muligheter fortvikling på 60 000 m2muligheter med Svakere noe boligutvikling. utsikter i Jaasund Mortensrudhøyden. reguleringfleretil ca 25 000 m2Reguleringårsaker småhusbebyggelse. har av dratt . 2011 før sommeren er tid. regulering ut Forventet i og hvor regulering fant sted i 2009. Utviklingspotensialet er på ca 52 000 m2, hvorav m2, hvorav fant 000 erreguleringog 2009. på ca i 52 sted Utviklingspotensialet hvor bli Fjordhagen 2010.februar av til ØsterBygging vil solgt ble cai Hus 15 200 m2 igangsatt år. i av boligav og et utviklingspotensial næring på ca med 60 000 m2. Her vil bygging av første 2011. halvår løpetgang i av kommeførstei Hagebyen Sjøkvartalet og den kombinasjonsbygg det kommer hvor skal bygges for30 boliger på toppen. Disse salg igangsatt 2011. bli påske over vil Bygging april 2011. i til timing av oppstart av ulike produkter i forhold til markedets etterspørsel til forhold i produkter ulike oppstart av til timing av God geografisk 136 ca 136 Totalt på potensial Aase Gaard prosjektet som er attraktivt beliggende villaområde i Sandnes under Aase Gaard villaområdesomprosjektet Sandnes under attraktivt i beliggende er Lervig Brygge som er et sentrumsnærtLervigger Brygge Stavan er i som et havneområde regulert til utvikling Det er 2010 inngått i om medavtale NAV leie Et større antall parkerings Et antall større Gjenværende boligpotensial på ca 46Gjenværende boligpotensial 46 på ca Gjenværende næringspotensial prosjektetfleksibel Deler av girmellom næring muligheter regulering har bolig og som • • • • • • • • • • erftsnæringen har medført at planlagt utbygging av området er skjøvet frem i tid . frem i området skjøvet er av erftsnæringenmedført planlagt utbygging at har De siste rekkehusene på Mortensrud overleveres i løpet av mars 2011, mens bygging er er bygging mens mars 2011, løpet i av Mortensrud sisteDe overleveres rekkehusene på igangsattførste på de på Løren trinnene 5, Kornmoenga og blokkene på Mortensrud. I tillegg er gangi vi på Løren med 2. å bygge Det vil løpeti året av komme ytterligere salgsstarter, Bjørnåsenhvorav for garantikonsortium et å etablere Bolig Selvaag med I Konsernet besluttet sammen tillegg oppføring 180 av leiligheter på Løren 2B. Byggingen er her gang i og selge partene vil . ferdigstiltprosjektet 2012 i dette er ferdige når boliger Prosjektene bokføres i samsvar med fullført kontrakts metode. Gruppens utviklingsprosjekter ogklassifisertkonsernets er som eiendommer varelager i varelager måles balanse. Ettersom Oslo: Oslo: Porteføljen 6 utviklingseiendommer består av selvstendige er i som organisert aksjeselsk ferdigregulerte boligprosjekter. av Porteføljen sammensatt er tall består porteføljen av: I samlede v Stavanger: Stavangerporteføljen organisert er som AS En etter under restruktureringen Bo i AS, TSLema Rotac AS, av Eiendom ogtil% HPRO sammen 37,5 av indirekte eiet% 62,5 er ogAS Finans Svithun ASAS. En Bo er et boligutviklingsselskap ledende i av: Stavangerregionen og består Hordaland: kun porteføljen nå denne 2010 består desember i Etter Bjånes salget restruktureringen av og Stord. et prosjektav på Aker skjer Stord AS. av Prosjektutviklingen 34 % og HPRO 66 %Prosjektet av på Stord eies innleid ved lokal ledelse som støttes sentralt. HPRO av Porteføljen på Stord er sammensatt eksisterendeav ut,kontor leies og for samt næringsbygg som potensial ytterligere næringsu . et 36 gstilt torer. 000 m2. En ekstern 12%. : regionen gjennom Selvaag Hansa regionen ate, blokk 625 på Vestparken - erdi for konsernets prosjekter i , hvorav næring utgjør ca 40 næring ca utgjør hvorav , sg : 00 . Dette inkludererkonsernets felleskontrollerte av andel 9 120 00 0 m2 på catotalt 120 potensial NOK 1 Oslo): - M a prosjekter og eiendommer. Estimert forventet kontantstrøm er diskontert kontantstrømforventet diskontert og eiendommer. Estimert er a prosjekter harWendt 2010 vært i salgsstart på Dr. prosjekt med 43 leiligheter der bygging er igangsatt i januar i 2011. igangsatt er bygging 43 leiligheter der prosjekt med muligheterfor oppstartav timing ulike produkter av forhold i til markedets etterspørsel. Det Deler av prosjektetfleksibelDeler av en reguleringgir har mellom bolig som og næring Gjenværende • • • Kaldnes Brygge: Kaldnes Brygge: med HPRO sentralt HPRO en lokaltPorteføljen av % via av eiet er ansatt, ledet 100 Byutvikling AS. Kaldnes er Hovedselskapet Bolig Selvaag AS. managementavtalen med Porteføljen det består sentrale av Tønsberg havneområdet prosjektet sentrum. stor av En del kontorenetil flere samt næringsseksjoner, 230 boliger, former av allerede realisert i Direktoratetfor sikkerhet 2 kontorbygg. og unntak og beredskap noen Med av av kontorbygget består solgt. Prosjektet alt er næringsseksjoner ene det i Lørenskog (Stor Porteføljen med HPRO % eietansatt er av sentra prosjektsjef,HPRO 100 av lt ledet via et langt Porteføljen relativt Bolig Selvaag AS. managementavtalen består med av næringsprosjekterto 300 boliger og over med utviklingseiendommer fremskredet område av består av langt. Prosjektene solgt så størrelsesorden verdivurdering utført av en profesjonell og anerkjent verdsetter er benyttet parallelt med egne parallelt med verdivurdering egne en profesjonell er og anerkjent verdsetter av benyttet utført vurderinger. Verdivurderingen indikerer en samlet realisasjonsv Verdivurderingen representerer derfor en estimert realisasjonsverdi av eiendommene til til Verdivurderingen eiendommene representererrealisasjonsverdi en estimertav derfor en antattkonsernet av på bakgrunn på neddiskontert og er utbyggingstakt, basert fr kontantstrøm Det er benyttetreelle diskonteringsfaktorer fra - intervallet innenfor 10 ved rentenivåer somved representererrisikofritil kapitalkostnadforhold gjeldsgrad rente,og en i risikopremie bestemt hvert enkelt av prosjekts risikoprofilkommersielle og andre fak porteføljen. Gruppens utviklingsprosjekter og eiendommer er klassifisert varelager som konsernets i realisasjonsverdi, kostpriskan netto av og til den laveste måles balanse. Ettersom varelager ikke merverdier på eiendommer realisasjonsverdien hvor overstiger kostpris motregnes mot kostpris. enn lavere er realisasjonsverdien ndommer eie mindreverdier hvor på konsernet eierinteresser porteføljer har hvor de ulike av omtale en nærmere følger Nedenfor prosjekter1 konsernet på Stord, Bo Stavangerog i Oslo i - utviklingsprosjekter, og selgere kan risikere ikke å oppnå priser som reflekterer reflekterer priser som utviklingsprosjekter,kan risikere ikke å oppnå selgere og realisasjonsverdien. kan Således for eiendommer tilbys som før salg ferdi er prosjektet ved ordinærved solgt gjennomføring virksomheten av bli til priser enn ligger lavere som realisasjonsverdien. forutsettergrunnlag salgsinntekter.Boligprosjekter brutto Vurderingen på vurdert at av er alle solgt bli boenheter konsernet ferdigstillelse, av vil ved enten til sluttbrukerog (for egen eie bruk)til en investor (for eller utleieformål).forgruppene gjørforskjellto Vurderingen de ingen forutsetningen at grunnlag vurdert av på potensielle kjøpere. Næringsprosjekter er av ferdigstilt. blir de eiendommenesom avhende hvert etter konsernet vil I praksis konsernet vil kunne beslutte på et exit tidligere tidspunkt førferdigstillelse), (dvs. eller på et senere tidspunkt (dvs.for eiendommen beholde en periode). utleie over Verdivurderingen er konsernets utviklingsstrategi. modell av forenklet på en basert derfor

A 114 % 39 9 400 393 2,67 % 8 067 722 2,30 % 8 067 722 2,30 % 6 890 326 1,96 % 6 318 989 1,80 % 6 129 756 1,74 % 5 000 1,42 % 4 841 890 1,38 % 4 710 000 1,34 % 4 576 000 1,30 % 3 502 000 1,00 % 3 110 994 0,88 % 2 966 114 0,84 % 13 543 107 3,85 % 13 880 000 3,95 % Sum antall ved innkalling Ikke kapital innbetalt % 31/12/09 9 400 393 3,46 % 8 067 722 2,97 % 8 067 722 2,97 % 6 890 326 2,54 % 6 318 989 2,33 % 6 129 756 2,26 % 5 000 1,84 % 4 841 890 1,78 % 4 710 000 1,73 % 4 576 000 1,69 % 3 502 000 1,29 % 3 165 938 1,17 % 1 500 000 4 665 938 1,33 % 3 110 994 1,15 % 2 966 114 1,09 % 13 543 107 4,99 % 13 880 000 5,11 % 17 743 726 6,53 % 31 546 040 49 289 766 14,02 % 35 000 12,89 % 20 000 55 000 15,65 % 80 750 053 29,74 % 25 453 960 106 204 013 30,21 % 33 866 439 12,47 % 1 500 000 35 366 439 10,06 % Beholdning 271 531 169 100,00 % 80 000 351 531 169 100,00 % 237 664 730 87,53 % 78 500 000 316 164 730 89,94 % NO NO NO NO GB NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO Land . : MP PENSJON PK PENSJON MP SVITHUN FINANS AS FINANS SVITHUN VEIDEKKE EIENDOM AS EIENDOM VEIDEKKE T S EIENDOM AS S EIENDOM T GOLDMAN SACHS INT. - EQUITY - SEB ENSKILDA ASA SEB ENSKILDA STOREBRAND LIVSFORSIKRING LIVSFORSIKRING STOREBRAND HUSTADLITT AS HUSTADLITT MEGARON AS MEGARON IKM EIENDOM AS EIENDOM IKM Aksjonær JASTO A/S JASTO SELVAAG BOLIG AS BOLIG SELVAAG ROTAC AS ROTAC STATOIL PENSJON PENSJON STATOIL LEIF HÜBERT EIENDOM AS EIENDOM HÜBERT LEIF INSTITUSJONEN FRITT ORDINSTITUSJONEN FRITT MILEPEL AS MILEPEL Totalt antall aksjer antall Totalt MORUD MINERALS AS Øvrige (eierandel <Øvrige 1%) A.B.P. EIENDOM AS A.B.P. EIENDOM Sum Liste aksjonærer over Per 31.12.10 er 80 millioner aksjer av kr 1 ikke utstedt. Aksjene ble tegnet i forbindelse med i tegnet ble kr Aksjene 1 ikke utstedt. av millioner aksjer Per 80 31.12.10 er emisjonen mai i 2009 ogfordeler seg som vist tabellen over.i Aksjene er utstedt januar i innbetalt. 80 er MNOK på 2011 og aksjekapitalen selskapet.i Ingen eier 172 000 aksjer Administrerende Hannestad Thomas direktør Rygg aksjer.eller styremedlemmer Avtroppendeøvrige eier ansatte ledende har styremedlemmer selskapet i aksjer ikke eid 38 1 1 Pålydende verdi (NOK) : MNOK MNOK MNOK MNOK MNOK MNOK MNOK MNOK 9 MNOK 3 16 58 -64 -16 Ca 385 Ca 230 . Antall aksjerAntall etter endring 169 aksjer pålydende NOK 1, alle NOK 1, alle pålydende 169 aksjer 531 271 531 169 (NOK) var Verdiøkning Nedskrivning Nedskrivning Verdiøkning Verdiøkning Aksjekapital 271 531 169271 531 169 271 531 169 271 531 169 består av 271 (FKV/TS) (FKV/TS) (FKV/TS) stille garantier stille salgsprisen årfor tilsvarende 3% av etter 3 i dato : T ype pets pets aksjekapital per 31.12.2010 sjer har lik stemmerett. lik har sjer Effekt forsinkelse/framskynding av på alle prosjekter ett år Ca 230 Effekt økt/redusert av salgspris med 5% Jaasund Lørenskog Sentrum Vest Skårer verdiendringSum basis 100% Verdiendring tomter i porteføljene følge verdivurdering av som ny Lervig Brygge Aase Gård Effekt økt/redusert av byggekost med 5% Vedtatt dato Vedtatt 01.01.2010 Aksjekapital 31.12.2010 Aksjekapital ak Gjennomsnittlig antall aksjer utestående i 2010 i Gjennomsnittlig utestående antall aksjer Selska til den laveste av kostpris og nettorealisasjonsverdi,kan ikkemerverdier på eiendommer mot realisasjonsverdienpå eiendommer mindreverdier hvor kostpris overstiger motregnes verdivurdering kostpris. realisasjonsverdienhvor ny erenn Oppsummert viser lavere følgende resultater 11 . Aksjekapital (Tall1000) i NOK Gode markedsutsikter oggodt Stavangermarkedetgir i salg grunnlagfor reversering av tidligereGaard med Brygge tilsammen nedskrivninger på Jaasund, Aase års og Lervig fra linjen resultat i konsernets 51,8MNOK utgjørinngår 82,9, andel som MNOK hvorav TS/FKV konsernregnskapet.i følge 64 kommerbetydelig MNOK Nedskrivning Lørenskog i som av Vest på Sentrum AS usikkerhet omkring utnyttelsespotensialet. Skårerer Bolig AS nedskrevetfølge som ny av vurdering prosjektene utbyggingstakten i av konto inntil hos eiendomsmegler sperret på en frakunderForskuddsbetalinger deponert er finnerferdigstillelse er forI tilBustadoppføringslova sted. henhold og oppgjør enheten HPROforpliktet til å ferdigstillelse. I tillegg må det stilles garantier som dekker forskuddsbetalinger fra kundene. kundene. forskuddsbetalingerfraferdigstillelse. garantier detdekker som må tillegg stilles I gjennom bank. dekket er garantiene Disse for endringerfor Tabellen potensielle sensitivitet nedenfor viser verdivurderingen av timing og byggekost endringsalgspriser, i ved konsernets utviklingsprosjekter

A 115 41 Til forfall Til 19.11.2012 19.11.2012 30.06.2011 Fast marginFast *) og mislighold i form 0 mislighold eller brudd på NIBOR + NIBOR 0,95-1,25% margin Rente Ved Ved 0 . ll er ikke tidsbestemt. ikke er ll 989 151 1 134 826 989 151 1 134 826 31.12.2010 31.12.2009 10 000 10 000 14 565 14 724 TNOK 315 579 392 541 449 259 525 496 199 749 192 065 24 565 680 621 283 966 989 151 315 579210 000 392 541239 259 + NIBOR 2,00% margin 250 000764 838 +1,50% NIBOR margin 275 496 918 037 224 313224 313 216 789 + NIBOR 1,75% margin 216 789 989 151 1 134 826 31.12.2010 31.12.2009 til forfall. Forfa (påslagene på NIBOR (påslagene kan ikke med økes) de ulike margin utløpet av denne perioden er listet ovenfor. Når det gjelder "Andre gjelder"Andre det er Når ovenfor. listet denne perioden utløpet av kan långiver kreve innfrielse av lånene. innfrielsekreve av kan långiver er er fastedet marginer frem , : lån uktur langsiktige n 1-2 år år 1-2 år 3-4 4 år Over Totalt Banklån Selgerkreditt Selvaag Selgerkreditt Stavangerselgerne Annet Sum langsiktige lån til kost amortisert lån Kortsiktige Sum lån til kost amortisert av bank:Spesifikasjon Spesifikasjon av lånetype: av Spesifikasjon Langsiktige lån Obligasjonslån Obligasjonslån Storebrand DnB NOR kredittinstitusjoner til Gjeld Andre kreditorer *) Annen gjeld langsiktig Sum lån til kost amortisert 13 . Lå (Tall1000) i NOK *) Selskapet har avtalt fast kreditorene, for dato kreditorer" NOK. i tatt opp Samtlige er lån Forfallsstr Konsernets lån er sikret mot pant i konsernets eiendeler. Med unntak av mindre av andeler unntak av konsernetsmot Med eiendeler. i Konsernets erpant lån sikret konsernets Avtalestrukturen medomløpsmidler ereiendeler pantsatt. konsernets alle banker tilsier at detfrie ikke er panteobjekterkonsernetkan som i til ytterligere benyttes opplåning bankforbindelser. med nye Det er knyttet til selskapets betingelser innlån form i informasjonsplikt av manglendeav betaling renter eller avdrag av informasjonsplikten 10 40 på - 0 0 0 857 588 944 475 -867 -501 1 167 -8 418 -2 695 0 0 0 0 0 0 91 944 511 747 164 2010 2009 2010 2009 2 202 2 111 2 111 2 503 1 455 1 217 11 746 7 177 8 230 25 580 33 998 17 350 8 299 25 744 25 580 18 567 17 350 . Sum anskaffelseskostSum 31.12 anskaffelseskostSum 31.12. akkumulerteSum avskrivninger 31.12. Kontormaskiner og inventar Anskaffelseskost 01.01 Tilgang Avgang Akkumulerte avskrivninger 01.01 akkumulerteAvgang avskrivninger akkumulerte avskrivningerSum 31.12 Bokført verdi 31.12 Immaterielle eiendeler - Leiekontrakter Anskaffelseskost 01.01 Tilgang Avgang Akkumulerte avskrivninger 01.01 akkumulerteAvgang avskrivninger Bokført verdi 31.12. Periodens avskrivninger Periodens nedskrivninger Periodens avskrivninger Periodens nedskrivninger 6 år . Varige driftsmidler 12 . Varige (Tall1000) i NOK Varige driftsmidler er behandlet i tråd med IAS 16 "Eiendom, anlegg og utstyr". Varige og utstyr". Varige IAS 16 "Eiendom,med anlegg Varige tråd i er behandlet driftsmidler driftsmidlerforventet lineært som avskrives over levetid forkontorutstyr 3 og inventar er år. Immaterielle eiendeler bestårknyttet hjemmeside balanseførte utviklingskostnader som av til amortiseres 3 år, over samt leiekontrakter som leieperiode amortiseres gjenværende over

A 116 0 3 2 m 78 0 7 43 u 6 1 S . 3 2 815 1 -3 622 1 -27 092 -86 895 1 - rpliktelsen r 0 0 5 6 e 1 2 27 784 l -21 1 d 8 -105 - 2010 2009 i 2 -2 815 3 603 - -2 815 3 603 m -27 092 -27 092 -3 544 s -123 831 -100 145 g g 31.12.2010 31.12.2009 e l Utsatt Utsatt n A oppgjør Sum r 0 - e 6 g 6 28 %28 %28 % -34 67322 % -1 118 11 514 -28 040 -27 092 -7 893 28 786 -3 544 n 3 i -3 728 2 n - t e s v balansen, mens utsatt er oppgjør mens balansen, Infra- A r 0 struktur e 3 g - - - 5 n 1 27 784 40 607 10 000 50 607 68 390 10 000 78 390 68 390 10 000 78 390 i - r d r o F r 5 e 8 g 5 -619 959 a l 5 e r a V

l i 1 g 4 t n i d r 4 d 2 815 1 ø f 9 u -70 573 6 204 -2 489 -19 932 -23 683 - k m s e r r f e d n U 0 1 0 2 r e b r m e e s b e m d e . t s 1 t e a 3 k r d . e s 1 t Skattekostnad t p 3 a . Avsetning for forpliktelser r m s t e u ) Infrastruktur Total avsetning pr 31.12.2009 Resultatført året: av i løpet - årets avsetninger Langsiktig del Kortsiktig del Total avsetning pr 31.12.2010 Forventet skattekostnad Ikke fradragsberettigetIkke kostnad skattepliktig Ikke inntekt Skatt på poster direkte ført mot egenkapital Effektiv skattesats / skattekostnad Endring i utsatt skattefordel og utsatt skattegjeld i perioden, uten hensyntagen utligning av på balansedagen, vises som følger: U Sum pr 31.desember 2009 Avstemming avAvstemming skattekostnad Resultat skattekostnad før Resultatført endring utsatt skatt Skattekostnad per 31. desember Skatt på årets resultat i solgt virksomhet Betalbar skatt S Ført motFørt egenkapitalen Resultatført Utsatt skattefordel egenkapitalen ført mot i perioden Skatt på emisjonskostnader P Infrastruktur erklassifisert som avsetningfor forpliktelser i klassifisert som annen langsiktig gjeld. langsiktig klassifisert annen som a forpliktelser veier, eksempel påtar(for seg til infrastruktur konsernet gradI den støyskjerming) utenfor tomteområde, eget balanseføres estimatbeste av denne fo 16 . (Tall1000) i NOK Resultatskatt er beregnet ved bruk av selskapsskattesatsen i Norge som for 28% tiden er som Norge selskapsskattesatsen i av bruk Resultatskatt beregnet ved er 17 (Tall1000) i NOK 42 708 0 0 0 0 5 311 3 509 4 1061 205 2 801 5 311 3 509 54 863 215 798 54 863 215 798 54 863 215 798 30 65324 209 203 082 12 716 37 98843 299 42 660 46 169 31.12.2010 31.12.2009 31.12.2010 31.12.2009 31.12.2010 31.12.2009 31.12.2010 31.12.2009 gjeldog annen kortsiktig gjeld dør Dettegjelder ytet lån til finansiering konkrete av prosjekter, bankgarantier inkludert stillet Total Ikke forfalt Ikke 3 månederInntil Over 3 måneder Sum kontanterSum og bankinnskudd Kontanter, bankinnskudd og ubenyttet ramme prosjektlån følgende: utgjør Kontanter og bankinnskudd rammeUbenyttet prosjektlån *) Total Leverandørgjeld kostnaderPåløpte og andre periodiseringer Sum leverandørgjeldSum og annen kortsiktig gjeld Kontanter og bankinnskudd (frie midler) Bundne bankinnskudd Aldersfordelingen av leverandørgjelden er som følger: som er Aldersfordelingen leverandørgjelden av . Andre finansielle instrumenter,14 . Andre finansielle kontanter og bankinnskudd (Tall1000) i NOK . Leveran 15 . (Tall1000) i NOK *) overfor grunneiere. Midlene kan ikke benyttes til andre formål. til kan andre benyttes ikke grunneiere.overfor Midlene

A 117 45 og og - ent med et beløp på på beløp et HPROs andel av HPROs andel 104. NOK M . boliger til en av ca verdi 75. . NOK er seg samme problemstilling til problemstilling seg samme er og 2009. 2008 årene eværelsen av forurensningkanmedføreeværelsen av for tileggskostnader fjerning forurensingen av . Forpliktelser o.l. kjøp til balansedagen etter Hendelser . Det foreliggerDet formiljøforurensning en risikofor grunnen i konsernet. i selskaper enkelte Tilsted fremtidigkansompå finansiell resultat ha innvirkning kj stilling.er og ikke HPRO forhold som pr 31.12.10 tilsier at det skal avsettes forforpliktelser knyttet til forurensning i grunnen . salgsinntektene utgjør ca M salgsinntektene ca utgjør HPRO harHPRO også hatt en skattesak med fradrag SkattekontoretOslo i vedrørendefor konsernet. medkostnaderforbindelse av gjaldt etableringTvisten pådratt i vurdering om finansieringskostnaderkostnadene var kunne fradras som eller om direkte, de var anskaffelseskostnader på de ervervede knyttet aktiveres til tingsinnskuddsobjektet som aksjene/eiendommene. Konsernet fikk medhold i tvisten for 14, MNOK mens MNOK 10 relatertMNOK til et tilretteleggingshonorar vært skulle aktivert. Konsekvensen av 10 erSkattekontorets reklassifisert at ble MNOK til vedtak anskaffelseskost tomt gjennomgår Øst også 2,8. Skatt balanseførtmedredusert utsatt skatt MNOK ikke at anser Vi 2009. 2008 og emisjonene i kostnadermedforbindelse fradragsføringen i av det knytt . Utbytte pr aksje / Utbyttepolitikk / aksje pr Utbytte 20 . bebyggelsesplaner forpliktelser til å forestå utbygging av infrastruktur mv. infrastrukturDisse forpliktelserforestå utbygging bebyggelsesplaner av til å forpliktelsene er reflektert verdivurderingen i de av ulike prosjekter.forpliktelserSlike påvirker med kostnaderfaktiske overensstemmelse i er prosjektene såfremt av ikke verdi HPROs grunntil estimatene lagt er som Hansa Property Group AS harmålsetting AS PropertyHansa som Group til avkastningen at aksjonærene skal gjenspeile verdiene som skapes konsernet.i får Aksjonærene på avkastning investert kapital til tidgjennom enhver økningvil fremtidig et aksjekurs. utbyttei overskudd og av Disponering gifor vurdertsom best Property bli fra Hansa tilvil hva utavkastning aksjonærene. hensynet betalt utbytte. langt ikke så har Group AS utfall Betingede 21 . I for etterberegning 2007 og 2008. mva av relatert noen saker til vedtak om harHPRO hatt 9,9 fordringtil gode på ca på merverdiavgiftMNOK en bokførtregnskapet det var pr 31.12.08 knyttetforholdene. til disse spørsmåletfått i har HPRO medhold det om prosentvise fradraget for mva. for første og andre termin Total2008. tilbakebetalt mva utgjør 4,5. MNOK gjelder spørsmåletNår det hvorvidt om for av erverv kostnader til rådgivere Klagenemnda og i fradragsberettigede i tapte saken HPRO eiendomsporteføljene er ertil anket derfor saken reelt oppfatning ertingretten. refusjonskravet og at den er av HPRO fordringen på MNOK førsterettsinstans er tapt i har følge man at lagmannsretten. av Som tapsførtforsiktighetfra likevel 4,6 ut 2010 i 22 Kommunen Selskapermed utviklingsprosjekter aktive som har av regulerings en del 23 Etter Konsernetfortsatt har balansedagen salg med de prosjekter i ligger som ute. Det er etter balansedagen totalt solgt 30 44 med 346 545 kommitert , men ikke kommitert -0,28 -0,44 -0,36 -0,56 9 450 2 736 1 377 27 031 10 570 25 682 26 244 37 86815 481 28 167 39 102 12 01515 016 10 223 31.12.2010 31.12.2008 31.12.2010 31.12.2009 80 000 46 465 753 31.12.2010 31.12.2009 -96 739 338 -96 600 993 271 531 169 173 591 153 351 531 169 220 056 906 et et som tilfaller aksjeeierne . 000 aksjer som er ed å dividere resultat innbetalt innbetalt 31.12.2010per og kostnader r aksje beregnes v beregnes r aksje r aksje r e Property har Group per 31.12.20 AS 10 80 000 ) oppgjør Utsatt Totale finansinntekter Finanskostnader Rentekostnad Kostnad renteswap Andre finanskostnaderAndre Totale finanskostnader Balanseført rente i perioden Finansinntekter Resultat til aksjonærer i Hansa Property Group AS gjennomsnittligVeiet antall aksjer utstedt Utvanningseffekt innbetalt innkalt ikke av aksjekapital resultatUtvannet per aksje (NOK) Renteinntekt finansinntektAnnen gjennomsnittligVeiet antall aksjer utstedt Ordinært resultat per aksje (NOK) utstedt innbetalt. og januar 2011. i innbetalt utstedt og ble Aksjene Hansa aksjekapital som ikke var utstedt aksjekapital ikke var som på tidspunktfor iverksettingarbeid på egen balanseføres av grunn. Motsvarende en økning tomt. på verdi b resterende 10 bestårav selgerkredittknyttet Utsatt av på MNOK del 31.12 oppgjørtil per AS. En Bo i kjøp aksjer av 18 . – Finansinntekter og (Tall1000) i NOK 19 . Resultat p Ordinært resultat p e et vektet gjennomsnitt av antall ordinære aksjer i omløp i løpet av året. av omløp løpet i i aksjer antall ordinære gjennomsnitt av et vektet tilfaller antall aksjeeierne resultatet og aksjesom er utvannet per resultat I av beregningen vektetgjennomsnittlig utestående aksjer justert for utvanningseffekterknyttet til

A 118 47 11 - - - - etter 951 250 150 150 150 700 2009 2009 ernett 1 834 2 209 Styre- 18 320 13 326 honorar 11 680 559 150 300 100 200 200 200 100 100 2010 2010 2 116 1 350 Styre- 17 484 14 129 honorar finnes AS, En kun som Bo nå etter i overensstemmelse retningslinjermed og selskapets De ansatte deltar selskapets i som ansatte pensjonsordningDe er har ingen aktive opsjonsordninger. aktive ingen har var i en ramme på 2 millioner kroner eksklusive arbeidsgiveravgift,kroner millioner eksklusive på 2 en ramme 10 elskapet elskapet S forsikringer. forsikringer. dde i 20 sesbasertsordning pensjon r ttes av styret. Styret skal påse at lederlønnsordninger ikke gir uheldige gir uheldige lederlønnsordninger ikke at styret. skal påse av Styret ttes Etterlønnen er i sin helhet resultatført i 2010. i resultatført helhet sin i er Etterlønnen godtgjørelse e Sum årsverkAntall i regnskapsåret Andre personalkostnaderAndre Pensjonskostnader - innskuddsbaserte pensjonsordninger Styret Arbeidsgiveravgift Lønn Ole Jarl Rettedal - styreleder Rune Ingve Fløgstad -Rune styremedlem Ingve OlsenÅge Hodnefjell Total styret Lønn/godtgjørelse til styret og ledende ansatte AugustHenrik Christensen - fratrådt styreleder Steinar Mejlænder-Larsen Leif Edgar Johansen - styremedlem Olaf Torsheim - fratrådt styremedlem Baard Schumann - fratrådt styremedlem godtgjørelser fastse svekkeromdømme. dets forvirkninger eller HPRO telefon, int for tillegg bil, fastlønnmed være Hovedelementet lederkompensasjon skal i og personal aviser, samt (Tall1000) i NOK etablert en innskuddsordning. som for Kostnaden pensjonsordningen maksimalt skal utgjøre fastlønn.10% av Ytel egenkapitalmetoden. til bonus form av for resultatavhengig i etablert avlønning prinsipper er det Ut dette over selskapets ansatte. ledende Bonus fastsettesfraut Bonus er skjønn. begrenset styrets fastlønn. av oppad til 40% fra omansettelsesforholdet selskapets skal opphørside ikke etterlønnAvtale av ved overstige 12 måneders Tronstadlønn.fratrådte Pål direktør somkvartal administrerende 1. i 2010. Sluttvederlaget ha nedsalget i 2009 har blittnedsalgetfelleskontrollert 2009 har i en bokføres virksomhet som forsikringsordninger en opprettholdelse i av måneders og lønn 12 og består av overgangsfase. Faktisk prinsipper. , til 46 samt 531 169 Kornmoenga som eier 100% av som av eier 100% : . 25 e kapital på MNOK 80 i Hansa Hansa kapital 80 i MNOK på jerfra 271 endres forkjøp prosjektledelse av og i 2010.i 31.12 Per har HPRO s ksje a 4,3 . basis) - Bjånes Utvikling AS forBjånes NOK 1 AS Utvikling NOK M er morselskapeter konserneti 172 000 til Milepel AS. 8,5 (100% Antall aksjer Antall 298 m2 298 SBRA

Milepel AS, Milepel aksjonær HPRO og i tidligere eier Bjånes av 25 000 25 NOK innkalt, ikke innbetalt PRO 5 AS og HPG Vest AS med tilhørende datterselskap. tilhørende med AS Vest HPG og AS PRO5 - av Lervig Brygge Hageby, Lervig Brygge Sjøkvartal, Kaldnes NAV og NAV BryggeKaldnes Brygge Lervig Sjøkvartal, Lervig Hageby, av . startet bygging av Dr. Wendts Dr. 5 , gatesamtstartet på Løren på Lørenskog, av bygging Salg Bjånes av UtviklingAS til . Transaksjoner nærstående med . Lederlønnserklæring og lønnsinformasjon Løpende kjøp av tjenester fra Selvaag Bolig AS i henhold til managementavtalene. til henhold i fra AS Bolig kjøp Selvaag tjenester av Løpende Salg av Bjånes Utvikling AS Utvikling Bjånes av Salg et er PG Vest AS solgte i desember i aksjene i PG Vest solgte AS onserninterne fordringeronserninterne for NOK For øvrige godtgjørelser til ledende ansatte henvises det til not det godtgjørelser ansattetil ledende henvises For øvrige Thomas Rygg Hannestad Hannestad Thomas Rygg Kaldnes Dokk Syd med til sammen 12 til med Dokk Syd Kaldnes vedtatt byggestart Det er 31.12.201 0 bokført per Dette øker januar helhet sin 2011. aksjekapitalenProperty i innbetalt Denne ble Groupi AS. antall aksjermed 80 millioner slik at totalt antall ak 321 531 16 9. a) b) Utvikling AS Mortensrudhøyden og Løren 2B. Dette utgjør til ogutgjørsammen 38Mortensrudhøyden 2B. Løren Dette Videre er det SBRA. 719 m2 D Konsernet har vært involvert i vært Konsernet har parter: nærstående transaksjoner med følgende vesentlige AS Bolig fra Selvaag tjenester management av a) kjøp Løp ende hartilHPRO henhold i managementavtalen inngått januar i 2010 kjøpt tjenester for det overordnede ansvaret for prosjektene for aksjene Øst AS, HPG i H 24 (Tall1000) i NOK (registrert PropertyHansa Norge) Group AS i 25 ledende ansatte og andre til leder Retningslinjer godtgjørelserfor daglig Prinsippene for Group Property Hansa til en sterk i lederavlønning skal stimulereog varig AS resultatorientertkonkurransedyktig,godtgjørelsesnivået ikke kultur. skal totale men Det være markedsledende sammenlignet medtilsvarende bedrifter. andre Det er styrets å ansvar fastsettefor retningslinjergodtgjørelse ansatte. til ledende Administrerende direktørs leverandørgjeld til Selvaag Bolig AS på MNOK 0,4. MNOK på Bolig AS leverandørgjeld til Selvaag Videre er det 2010 påløpt i M felleseide Oslo porteføljen. forretningsførsel den i b) H k Pr 31.12.2010 selskapet i følgende aksjeposter ansatte hadde ledende

A 119 49 319 2009 -9 856 22 707 39 753 20 347 16 728 12 519 12 519 418 2010 -2 899 21 348 37 946 39 091 16 180 13 398 13 398 -24 548-80 337 -27 234 -97 548 -93 173 -123 313 -30 278 -28 734 -93 173-93 173 -123 313 -123 313 -96 072 -133 169 3 9 10 10 6 8 2 9 Note Sum driftskostnad Sum Driftsresultat Nedskrivning finansielle av anleggsmidler Sum disponertSum (dekket) Årsresultat Annen driftskostnadAnnen finansinntektAnnen finanskostnadAnnen Disponering (dekning) av årsresultatet Avsatt til annen egenkapital Ordinært resultat før skattekostnad Skattekostnad på ordinært resultat Avskrivning Sum driftsinntektSum Lønnskostnader m.m. Salgsinntekt Resultatregnskap morselskap Resultatregnskap Hansa Group Property AS (Tall1000) i NOK 48 Total 2 161 3 185 9 743 2 097 2 300 10 443 1 583 Andre Andre ytelser 2009 6364 199 293 58 193 63 207 248 892 248 892 OTP ------Lønn 2 030 132 145 213 153 497 2010 2009 2 142 2 200 2 984 4 081 Total 2 1362 271 1 899 2 828 1 122 9 257 8 603 1 746 1 846 1 167 10 607 9 303 Andre Andre ytelser 2010 7057 293 164 46 14 62 188 321 831 321 831 OTP 922756 70 17 130 41 814 Lønn 8 105 9 455 1 496 . Revisjonshonorar Godgjørelse til revisor Godtgjørelse til revisor fordeler seg slik : - lovpålagt revisjon - andre attestasjonstjenester - skatterådgivning - andre tjenester utenfor revisjon Sum godtgjørelseSum til Deloitte (eksl. mva) AS Thomas Rygg Hannestad - administrerende direktørPål Tronstad - tidligere admininstrerende direktør 1 773 2 050 Ledende ansatte Torbjørn B. Torgersen - finansdirektør fra feb. 2010 Olav - tidligere Haugland finansdirektør KverneHalvard - prosjektdirektør fra feb. 2010Total ledende ansatte 1 108 Total styret og ledende ansatte Petter Salomonsen - eiendomsdirektør 26 (Tall1000) i NOK

A 120 50 0 712 745 745 2009 1 050 87 920 11 999 47 125 47 125 0 80 406 406 123 2010 18 428 171 757 88 315 14 993 47 209 47 332 121 816 272 388 103 387 100 632 492 660974 775 420 717 984 219 482 115 562 452 1 144 329 1 304 477 1 022 513 1 032 089 11 6 5 5 4 3 2 8 2 Note ansa Group Property AS Sum omløpsmidler Sum Sum eiendelerSum Sum fordringerSum Bankinnskudd, kontanter o.l. Krav på innbetaling aksjekapital av Andre fordringerAndre Omløpsmidler Fordringer Kundefordringer Obligasjoner og andre fordringer finansielleSum anleggsmidler anleggsmidler Sum Lån til foretak i samme konsern Finansielle anleggsmidler Investeringer i datterselskap Sum varigeSum driftsmidler Sum immaterielle eiendelerSum Varige driftsmidler Driftsløsøre, inventar,kontormaskiner verktøy, o.l. Utsatt skattefordel Eiendeler Anleggsmidler Immaterielle eiendeler Forskning, utvikling, konsesjoner, goodwill o.l. Balanse morselskap Balanse H (Tall1000) i NOK

A 121 er 53 nnen et år er klassifisert et er år nnen dvs at medtas dvs kostnader samme i med begrenset levetid avskrives planmessig. avskrives begrenset levetid med idler vurderes til laveste av anskaffelseskost virkeligverdi. av laveste og til idler vurderes omløpsmidler. Ved klassifiseringomløpsmidler. kortsiktig Ved av gjeld tilsvarende lagt er og langsiktig til rge. Selskapet har videre fulgt relevante bestemmelser i Norsk Regnskapsstandard fulgt videre bestemmelser Norsk i rge. relevante har Selskapet dlikehold ogforhold regnes påkostning/forbedring til driftmidlets i kjøp ved stand av kostmetoden i selskapsregnskapet. Investeringen vurderes til anskaffelseskost for aksjene selskapsregnskapet.til kostmetoden anskaffelseskost vurderes Investeringen for aksjene i nødvendig. vært har nedskrivning mindre med Konsernbidrag til datterselskap med fradrag for skatt, føres som kostprisøkt for aksjene. Utbytte ogkonsernbidrag inntektsføresår somsamme det datterselskapet. i avsettes Når utbytte/konsernbidrag vesentlig tilbakeholdt overstiger av andel resultatetter kjøpet, anses Omløpsm gjenvinnbart dersom til nedskrives anskaffelseskost,Anleggsmidlermen vurderes beløp dette forbigående.enn bokført lavere forventesvære er verdi, og verdifallet ikke å Anleggsmidler . beløp tilpålydende kortsiktig gjeld vurdert er gjeld og langsiktigAnnen Varige driftsmidler forventede lineærtVarige driftsmidlenes og avskrives over driftsmidler levetid balanseføres 3 årkostpris over 15.000. ogdersom en NOK haroverstiger har som levetid antatt de Påkostninger driftsmidlerkostnadsføres underVedlikehold løpende av driftskostnader. eller forbedringer kostpris takt tillegges driftsmidletsi med mellom driftsmidlet. Skillet og avskrives ve driftsmidlet. felleskontrollert virksomhet tilknyttede og Datterselskaper, selskaper felleskontrollertDatterselskaper,tilknyttede ett og selskaper virksomhet vurderes periode som tilhørende inntekter. periode som balanseposter av vurdering klassifisering for Hovedregel og klassifisertAndre eiendeler er er anleggsmidler. bruk som bestemttil Eiendeler varig eller eie klassifisert omløpsmidler. som F ordringer skalsom tilbakebetales i som rentemetode. effektiv av bruk kost ved til amortisertergrunn. Obligasjonsgjeld oppført utarbeidet av Norsk Regnskapsstiftelse. Norsk utarbeidet av grunnleggende om kap 4. gjengitt regnskapslovens er regnskapsprinsipper som i De prinsipper oggod regnskapsskikkkap. 5 om og vurderingsregler er ikkegjengitt denne i forhold foreligger ved ikke dersom regnskapsprinsipper det noteninnledende om regnskapsposten fordrereller prin og vurderingsreglenesippene en presisering som (valgadgang mv). Salgsinntekter og driftskostnader Inntektsføring salg ved av varer skjer på leveringstidspunktet.Tjenester inntektsføres takt i til tjenester management av salg med består av utførelsen.inntekter hovedsaklig Selskapets selskaper konsernet.Det i geografiske virkeområde selskapene hvor blir således der i konsernets årsrapport). i dette om omtale (se nærmere konsernet representert er Kostnader medtas etter sammenstillingsprinsippet, p regnska morselskapets til Noter Regnskapsprinsipper 1. Årsregnskapet samsvar av eri 1998 og med satt regnskapsloven opp god regnskapsskikki No 0 0 0 52 -17 -17 319 -189 2009 -1 220 97 548 17 109 83 562 14 799 88 195 223 649 223 460 171 757 -133 169 -135 267 -139 881 0 0 0 0 418 632 -818 -202 -202 2010 1 228 80 337 18 428 -96 072 -76 962 -76 962 -61 890 -76 165 171 757 -153 329 Ordinære avskrivninger Nedskrivninger finansielle eiendeler Ordinært resultat skattekostnad før Endring i kundefordringer Periodens betalte skatt Endring i leverandørgjeld Innbetaling av egenkapital av Innbetaling egne aksjer av Kjøp gjeld av Nedbetaling Netto fra finansieringsaktiviteter kontantstrøm endringNetto i bankinnskudd, kontanter og lignende Endringer i konsernmellomværende Endring i andre omløpsmidler og andre gjeldsposter Innbetalinger ved opptak av ny langsiktig ny opptak av ved Innbetalinger gjeld Beholdning bankinnskudd, av kontanter og lignende pr 01.01 Netto fra operasjonelle kontantstrømmer aktiviteter Netto fra investeringsaktiviteter kontantstrøm Utbetalinger ved kjøp av varige av driftsmidlerUtbetalinger kjøp ved Beholdning kontanter av bankinnskudd, og lignende pr 31.12 Kontantstrømanalyse Hansa Group Property AS (Tall1000) i NOK

A 122 55 0 Sum verdi 202 418 981 529 482 115 -80 337 1 308 1 510 Balanseført da det ligger ligger da det t Sum varigeSum driftsmidler 0 (100%) siste år Resultat 0 0 41 41 164 164 123 3 år Lineær (100%) eiendeler siste år Immaterielle Egenkapital 0 Eier-/ 100 % 10 711 -10 024 20 734 100 %100 % 453 101 8 280 -42 539 -5 693 453 101 8 280 38 406 377 940 1 346 1 308 3-5 år Lineær stemmeandel t. -74 644 -5 693 527 745 13 973 20 734 562 452 inventar og Driftsløsøre, HPG AS Øst AS HPG Vest AS H-Pro 5 Forretnings- kontor Oslo Oslo Oslo Pro 5 AS er balanseført til høyere verdi enn bokførtselskape enn egenkapital i verdi til høyere balanseført er 5 AS Pro H- Tilgang Avgang Anskaffelseskost 31.12 Avskrivningsplan Varige driftsmidler Anskaffelseskost 01.01 Akkumulerte avskrivninger 31.12 Forventet økonomisk levetid Balanseført verdi 31.12 Årets avskrivninger Balanseført verdi 31.12.2010 453 101 8 280 20 734 482 115 Nedskriving Balanseført verdi 01.01.2010 Balanseført verdi 31.12 Datterselskap H-Pro 5 AS 5 H-Pro HPG Øst AS HPG Vest AS *) datterselskapene til merverdier selskape i Kostnader Kostnader regnskapsføres som inntekt.regel samme i tilhørende somhoved I periode de fastsettesfordelingen utgifter og inntekter mellom klar sammenheng en tilfeller er det ikke næringsprosjekter kriterier.Kostnaderetter medforbindelse av oppføring skjønnsmessige i byggeperioden.aktiveres i løpende fra Øvrige unntak sammenstillingsprinsippet er angitt der det aktuelt. er driftsmidler 2. Varige (Tall1000) i NOK datterselskap i Investeringer 3. (Tall1000) i NOK kostmetoden. regnskapsføres Investeringeneetter datterselskap i 54 eller kan balanseført verdi er enn både salgsverdi verdi høyere og balanseført føring ts den overskytende som del tilbakebetalingkapital, investert av fratrekkes investeringens og verdi i balansen. anleggsmidler Nedskrivning av enn virkelig verdi, et høyere er anleggsmiddel av verdi indikasjonVed balanseført på at foretas detfor test foretas verdifall. Testenfor av nivå anleggsmidler laveste det som har selvstendig kontantstrømmer. Hvis gjenvinnbart beløp (nåverdi ved fortsattgjenvinnbartforetas (nåverdi ved beløp til detnedskrivning bruk/eie), høyeste av det salgsverdiforutsetningene oggjenvinnbartTidligere beløp. nedskrivninger reverseres hvis for for unntak ikke lenger nedskrivningen av blant (med tilnedskrivning stede annet er goodwill). Fordringer Kundefordringerfordringer og til etter pålydende andre erfradrag oppført for til avsetning forventet tap. Avsetning tiltap gjøres grunnlagpå en av individuell vurderingde enkelte av Oppføring utsattskattefordel på nettoforskjeller av skattereduserende ikke er som utlignet og underskuddfremføring, til begrunnesfremtidigantatt med inntjening. Utsattskatt og balansen. i netto kan balanseføres oppføres skattefordel som Skatt på avgittføreskonsernbidragkostpris som økt på aksjer andre i selskaper, og skattmottattføreskonsernbidrag på som direkte motføres egenkapitalen, direkte mot skatt i konsernbidraget skatt (motbalansen og mot virkning hvis skatt på betalbar har betalbar utsatt på skatt). konsernbidraget virkning har utsatt hvis skatt Kontantstrømoppstilling Kontantstrømoppstillingen utarbeidesden indirekte Kontanter metoden. etter og kontantekvivalenter omfatter kontakortsiktige,nter, bankinnskudd og andre likvide plasseringer og medkursrisiko somkankonverteres uvesentlig umiddelbart kjente til kontantbeløp og med forfallsdato kortere enn tre måneder fra anskaffelsesdato. Finansiell risiko Detfor vedrørende selskapets opplysninger henvises til konsern 3 note regnskapets finansielle risikostyring. Inntek Inntektnår den er regnskapsføres opptjent, når altså på vederlag krav oppstår. Dette skjer vederlaget av når på Inntekteneregnskapsføres verdien tjenesten ytes.med transaksjonstidspunktet. Andelen salgsinntekter knytter som seg til fremtidige serviceytelser, med taktlevering i salget deretter og inntektsføres uopptjent inntektbalanseføres ved som ytelsene. av fordringer. Pensjoner Selskapet etablert har innskuddsordningfor en ansatte, sine kostnadsføres og premien takt i med ikkeforpliktelser selskapet betaling tilDet ordningen. påhviler ytterligere at etter om premienkravene tilfredsstillerobligatorisk betalt. er lov pensjonsordning Selskapets i tjenestepensjon. Skatt endring i skatt periodensog betalbare Skattekostnaden resultatregnskapet både i omfatter utsatt skatt. Utsatt skatt beregnes med aktuell skattesats de midlertidigepå grunnlag a v forskjeller samt skattemessige regnskapsmessigeverdier, eksisterer mellom som og eventuelt ligningsmessig til underskudd fremføring regnskapsåret. utgangenav ved forskjeller reverserer midlertidigesom Skatteøkende og skattereduserende utlignet. er periode samme reversere i

A 123 57 Sum 7 238 1 1 60 000 60 000 Pålydende Annen -93 173-93 173 -93 0 0 egenkapital Andre fordringerAndre 14 167 5 633 14 167 5 633 7 238 9 575 454 731 815 648 16 813 361 558 729 713 Annen kortsiktig gjeldAnnen Overkursfond 0 0 633 633 -189 -189 Egne aksjer Egne 271 531 169271 531 169 271 531 169 271 531 169 0 0 188 188 Leverandørgjeld Kundefordringer 2010 2009 2010 2009 2010 2009 2010 2009 Kommitert aksjekapital Aksjekapital (NOK) aksjer Antall ikke innbetalt 271 531 80 000 271 531 80 000 Aksjekapital henvises til note henvises konsernregnskapet24 i for opplysninger utfyllende vedrørende Aksjekapital 31.12.10 Aksjekapital 01.01.10 Foretak i samme konsern Sum Sum Foretak i samme konsern Korrigering av tidligereKorrigering av års feil Egenkapital 31.12.10 Årets resultat Årets endring i egenkapitalÅrets Egenkapital 01.01.2010 Det parter. transaksjonermed nærstående 5. Mellomværende med selskap i samme konsern samme i selskap med Mellomværende 5. (Tall1000) i NOK 6. Egenkapital 6. (Tall1000) i NOK 7. Aksjekapitalaksjonærinformasjon og Selskapet har kun en aksjeklasse. Selskapet har 56 000. I I 000. 0 0 0 0 2009 2009 2009 1 050 Beløp Rente 420 717 421 767 392 541 392 541 392 541 562 452 392 541 392 541 562 452 0 0 2010 2010 2010 Beløp Beløp 62 413 10 000 72 413 492 660 387 992 315 579 315 579 NIBOR + 2,0% margin 492 660 315 579 482 115 387 992 482 115 315 579 PRO PRO 5 AS. - Fordringer forfall med senere enn ett år Langsiktig lån til eksterne Sum gjeldLangsiktig Langsiktig gjeld til foretak i samme konsern Øvrig langsiktig gjeld Sum Forfallsstruktur langsiktige lån: 1-2 år Over 5 år Obligasjonslån Lån til selskap i samme konsern Obligasjonslån Sum Totalt Langsiktige lån 3-5 år Balanseført verdi av pantsatte eiendeler Aksjer i datterselskaper Gjeld sikret ved pant Morselskapet har avgitt selvskyldnerkausjon for lån i datterselskaper i selvskyldnerkausjonforMorselskapet TNOK 160 avgittmed lån har knyttet renter til forgarantiansvar rata skyldige og påløpte pro tillegg morselskapet har H Felleskontrollerte av virksomheter eiet 4. Fordringer og gjeld (Tall1000) i NOK

A 124 0 0 0 0 6 59 951 700 2009 2009 1 464 1 914 3 603 -7 956 -9 856 16 728 11 699 23 828 7,40 % -47 125 -47 125 -25 226 -17 276 -37 287 0 0 0 0 0 654 520 2010 1 350 1 958 -194 16 180 11 698 2010 -2 815 -2 899 28 192 2,90 % -47 209 -47 209 -17 132 -16 938 -28 275 -151 470-168 602 -143 078 -168 304 erskudd. tepensjon for de ansatte. tepensjon Andre ytelser Sum Styrehonorar Aksjeopsjoner til styremedlemmer og ansatte Arbeidsgiveravgift Pensjonskostnader Lønnskostnader Lønninger Herav ikke balanseført ikke Herav utsatt skattefordel Utsatt skattefordel i balansen Grunnlag for utsatt skatt/utsatt skattefordel 28% Utsatt skatt Underskudd til fremføring Andre posterAndre Permanente forskjeller (28%) Konsernbidrag direkte bokført i balansen Netto midlertidigeNetto forskjeller Utsatt skattefordel på emisjonskostnader direkte bokført i balansen Skatteeffekt direkte føring mot av egenkapital Beregnet skattekostnad skattesatsEffektiv **) Anleggsmidler Beregning av utsatt skatt/utsatt skattefordel Midlertidige forskjeller Forklaring til hvorfor årets skattekostnad ikke av utgjør 28% resultatet før skatt: 28% skatt resultatet av skatt før Renteswap Selskapet 10 har sysselsatt om årsverk inngått avtale Detobligatorisk regnskapsåret. i er tjenes Utsatt skattefordel er i sin helhet oppført i balansen fordi helhetselskapets vurdering er etter oppførtUtsatt det balansen sin i skattefordel i er fremtidigekan motov utnyttes sannsynlig at posisjonen før skatt forhold til resultat **) Skattekostnad i 9. Lønnskostnader, antall ansatte, godtgjørelser, lån til ansatte mm. ansatte til lån godtgjørelser, ansatte, antall Lønnskostnader, 9. (Tall1000) i NOK % 0 0 58 2009 -9 856 -9 856 -2 350 85 101 -48 068 -50 418 -50 418 9 400 3938 067 7228 067 722 2,67 % 6 890 326 2,30 % 6 318 989 2,30 % 6 129 756 1,96 % 5 000 1,80 % 4 841 890 1,74 % 4 710 000 1,42 % 4 576 000 1,38 % 3 502 000 1,34 % 1,30 % 3 110 994 1,00 % 2 966 114 0,88 % 0,84 % innkalling 13 543 107 3,85 % 13 880 000 3,95 % 0 Sum antall ved -299 2010 -2 899 -2 899 -8 093 -8 392 -8 392 95 772 -96 072 -133 169 kapital Ikke innkalt % i selskapet 31/12/10 8 067 7228 067 7226 890 326 2,97 % 6 318 989 2,97 % 6 129 756 2,54 % 5 000 2,33 % 4 841 890 2,26 % 4 710 000 1,84 % 4 576 000 1,78 % 3 502 000 1,73 % 3 165 938 1,69 % 3 110 994 1,29 % 2 996 114 1,17 % 1,15 % 1,09 % 1 500 000 4 665 938 1,33 % 9 400 393 3,46 % 33 866 439 12,47 % 1 500 000 35 366 439 10,06 % 13 543 107 4,99 % 80 750 05335 000 17 743 726 29,74 %13 880 000 12,89 % 25 453 960 6,53 % 20 000 5,11 % 106 204 013 31 546 040 55 000 30,21 % 49 289 766 15,65 % 14,02 % 237 694 730 87,53 % 78 500 000 316 164 730 89,94 % 271 561 169 100,00 % 80 000 351 531 169 100,00 % Beholdning NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO GB NO Land over aksjonærer: Betalbar skatt (28% gr.lag av for betalbar skatt i resultatregnskapet) Endring utsatt skatt/ utsatt skattefordel Grunnlag for årets skattekostnad Endring i midlertidige forskjeller Skattekostnad (28% av grunnlag for årets skattekostnad) Beregning av årets skattegrunnlag: Resultat skattekostnad før Permanente forskjeller *) Grunnlag for betalbar i resultatregnskapet skatt Skattepliktig inntekt (grunnlag for betalbar i balansen) skatt +/- konsernbidrag Mottatt/avgitt MORUD MINERALS AS SVITHUN FINANS AS AS EIENDOM TS ASA SEB ENSKILDA HUSTADLITT AS AS MEGARON A/S JASTO ROTAC AS PENSJON STATOIL AS EIENDOM HÜBERT LEIF ORDINSTITUSJONEN FRITT AS MILEPEL AS A.B.P. EIENDOM SUM MP PENSJON PK PENSJON MP Øvrige (eierandel <Øvrige 1%) aksjer antall Totalt VEIDEKKE EIENDOM AS EIENDOM VEIDEKKE IKM EIENDOM AS EIENDOM IKM LIVSFORSIKRING STOREBRAND GOLDMAN SACHS INT. - EQUITY SELVAAG BOLIG AS BOLIG SELVAAG Aksjonær Aksjer som eies av styret og ledende ansatte ledende og styret somav Aksjer eies selskapet.er i Det aksjer (administrerende172 000 Hannestad direktør) Thomas eier Rygg aksjer. eier styret som i eller personer ansatte ingen ledende andre Pr. 31.12.09 er 80 millioner aksjerkr (á ikke utstedt. 1) tegnetforbindelse ble i Aksjene med januar i 2011. utstedt er tabellen over. Aksjene i vist som fordeler seg 2009 og emisjon i *)forskjeller Permanente består representasjon, samt emisjonskostnader av datterselskaper. i aksjer regnskapsmessig på nedskriving Liste Skatter 8. (Tall1000) i NOK Årets skattekostnad

A 125 61 824 839 2010 2009 Bundne bankinnskudd Skattetrekksmidler

11. Bundne bankinnskudd, trekkrettigheter (Tall1000) i NOK 0 0 60 39 85 814 150 300 100 200 200 200 100 100 1167 1746 1122 2136 2271 900 369 9 257 1 350 Total Total 2009 2009 5 190 1 573 0 41 14 0 830 188 130 293 164 12 295 2010 2009 1 140 1 447 1 393 2010 2010 5 734 2 413 2 316 15 014 18 34339 091 15 157 20 347 25 54930 278 27 161 28 734 Andre ytelser Andre Andre ytelser Andre 0 46 17 62 70 70 57 321 OTP OTP 756 922 300 100 200 200 200 100 100 150 1108 1 496 8 105 2 050 Lønn 1 773 1 350 Styrehonorar Annen finansinntektAnnen Renteinntekt fra andre foretak innen samme konsern Rentekostnad fra andre foretak innen samme konsern Annen renteinntekt Annen finansinntekterSum Finanskostnader Finansinntekter Annen rentekostnadAnnen finanskostnadAnnen finanskostnader Sum - andre attestasjonstjenester - skatterådgivning Godtgjørelse til revisor Godtgjørelse til revisor fordeler seg slik: - lovpålagt revisjon - andre tjenester utenfor revisjon godtgjørelseSum til Deloitte (eksl. mva) AS Halvard Kverne - prosjektdirektør - Kverne Halvard feb. 2010 fra Petter Salomonsen eiendomsdirektør - Total ledende ansatte Olav Haugland tidligere - Olav finansdirektør Pål Tronstad tidligere - administrerende direktør B. finansdirektør - Torgersen Torbjørn feb. 2010 fra Ledende ansatte Thomas Rygg Hannestad administrerende - direktør Henrik August Christensen fratrådt - styreleder Steinar Meljænder-Larsen styremedlem - EdgarLeif Johansen styremedlem - Åge Olsen Hodnefjell styremedlem - Fløgstad styremedlem - Ingve Rune Olaf Torsheim fratrådt - styremedlem Baard Schumann fratrådt - styremedlem Totalt styret Lønn/godtgjørelse til styret og ledendeLønn/godtgjørelse til styret ansatte Styret Ole Rettedal Jarl styreleder - Detgitt er ikke til daglig lån/sikkerhetsstillelser leder,andre styreleder nærstående eller parter. selskapets lån/sikkerhetsstillelser er5% enkelt av ingen Det mer utgjør enn som egenkapital. regnskapet i sammen slått som er 10. Poster (Tall1000) i NOK

A 126 A 127 Aase Gård, Sandnes Gård, Aase

A 128 Appendix 8: financial statements Selvaag Pluss Eiendom KS 2011 with comparative figures 2010 (NGAAP) 2 1

A 129 4 3

A 130 6 5

A 131 8 7

A 132 10 9

A 133 12 11

A 134 Appendix 9: consolidated financial statements Selvaag Pluss Eiendom 2010 with comparative figures 2009 (NGAAP) 2 1

A 135 4 3

A 136 6 5

A 137 8 7

A 138 10 9

A 139 12 11

A 140 14 13

A 141 15

A 142 Appendix 10: financial statements selvaag bolig rogaland as 2011 with comparative figures 2010 (NGAAP) 2 1

A 143 4 3

A 144 6 5

A 145 8 7

A 146 10 9

A 147 12 11

A 148 13

A 149 Appendix 11: financial statements selvaag bolig rogaland as (formerly bo en as) 2010 with comparative figures 2009 (NGAAP) 2 1

A 150 4 3

A 151 6 5

A 152 8 7

A 153 10 9

A 154 11

A 155 Appendix 12: AUDITOR’S REPORT ON UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION

A 156 Appendix 13: APPLICATION form for the retail offering (Norwegian)

   

                                                                                                                                                                                                                                                                                                                                                                                                                                          

          

 

 

 

    

 

 



 

A 157



                                                                    

                                                

  

             

            

                                                 

                               

                              

A 158 Appendix 14: APPLICATION form for the retail offering (English)

   

                                                                                                                                                                                                                                                                                   

          

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       

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                              

                

                    

                                            

               

                                                                                                                              

 

               

  

  

                     

   

            

  

                                              

A 160 Appendix 15: APPLICATION form for the Employee offering (Norwegian)

   

                                                                                                                                                                                                                                                                                                                                                                                                    

          

 

 

 

    

 

 



 

A 161



                                                                    

                                                

  

             

            

                                                 

                                

                              

A 162 Appendix 16: APPLICATION form for the Employee offering (English)

   

                                                                                                                                                                                                                                                                                        

          

 

 

       

 

   

A 163



                              

                

                    

                                            

               

                                                                                                                              

 

               

  

  

                     

   

            

  

                                              

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Managers

ABG Sundal Collier Norge ASA DNB Markets Pareto Securities AS Munkedamsveien 45 E Stranden 21 Dronning Mauds gate 3 P.O. Box 1444 Vika Aker Brygge P.O. Box 1411 Vika NO-0115 Oslo NO-0021 Oslo NO-0115 Oslo Norway Norway Norway

Tel.: +47 22 01 60 00 Tel.: +47 22 94 88 80 Tel.: +47 22 87 87 00 Fax.: +47 22 01 60 62 Fax.: +47 22 83 20 00 Fax.: +47 22 87 87 10 www.abgsc.no www.dnb.no/markets www.paretosec.no