Selvaag Bolig ASA: Q2 2014: Good margins and sales

Second quarter of 2014:

• Improved sales owing to better market conditions
  
• Building activity still high, and stable number of construction starts
• 255 homes sold, 197 started and 236 delivered
• Operating revenues (NGAAP) of NOK 830.5 million, EBITDA of NOK 121 million (14.6 per cent)

Selvaag Bolig achieved operating revenues (Norwegian generally accepted accounting principles) of NOK 830.5 million in the second quarter, up from NOK 593.5 million in the same period of last year. EBITDA was NOK 121 million, compared with NOK 90.7 million in the second quarter of 2013 - corresponding to margins of 14.6 and 15.3 per cent respectively.

"We're delivering high margins on projects under construction, and we have made good choices on locations, price and house types," says CEO Baard Schumann.

"Sales of new homes improved considerably during the second quarter, and we were ahead of our sales budget at 30 June. We are well placed to reach our 2014 targets."

Selvaag Bolig started construction of 197 homes (2013: 284) during the quarter. At 30 June, the company had 1 418 homes (1 131) under construction with a combined sales value of about NOK 5.2 billion (NOK 4.2 billion). Seventeen completed homes (23) remained unsold at that date.

At 30 June, 76 per cent of the housing under construction (83 per cent) had been sold. Since sold homes are first recognised as income on delivery to the buyer, the inventory of such buildings represents substantial value for Selvaag Bolig in the time ahead. The IFRS result for the second quarter of 2014 was good because of a large number of deliveries during the period.

Revenues for homes delivered pursuant to the IFRS in the quarter came to NOK 809.5 million (NOK 620.9 million) and EBITDA to NOK 100.2 million (NOK 94.3 million), which corresponds to a margin of 12.4 per cent (15.2 per cent).

The interim report for the second quarter of 2014 can be downloaded here http://www.selvaagboligasa.no/en

Further information from

Baard Schumann, CEO, Selvaag Bolig ASA
Tel: +47 940 80 000, e-mail: bs@selvaagbolig.no

Haavard Rønning, CFO, Selvaag Bolig ASA
Tel: +47 400 20 019, e-mail: hroe@selvaagbolig.no

Selvaag Bolig ASA is a residential property developer, which controls the whole value chain from the acquisition of land to the sale of turnkey homes. With several thousand homes under development at any given time, the company concentrates on the growth areas in and around Greater Oslo, Bergen, Stavanger and Trondheim. Selvaag Bolig continues the 60-year history and experience of the Selvaag group, and offers a broad range of home types under the Start, Hjem and Pluss brands. Its head office is at Løren in Oslo.