Annual report 2025

The annual accounts have been compiled in accordance with the Norwegian Accounting Act and Norwegian generally accepted accounting principles (NGAAP).

The preparation of the accounts pursuant to the Accounting Act requires the use of estimates. Furthermore, the application of the company’s accounting principles requires management to exercise its judgement. Areas where such judgements are extensively applied, where the level of complexity is high, or where assumptions and estimates are significant for the annual accounts are described in the notes.

Revenues from sales of goods and services are assessed at the fair value of the consideration, net after deduction of VAT. Sales of goods are recorded as income when the company has delivered its products to the customer and no unfulfilled liabilities exist which could influence the customer’s acceptance of the delivery. Provision for expected guarantee work is recorded as a cost and as a provision for liabilities. Services are recorded as income as they are provided.

Assets intended for permanent ownership or use are classified as fixed assets. Assets associated with the flow of goods are classed as current assets. Other receivables are classified as current assets if they are to be repaid within one year. Analogue criteria are applied for liabilities. Nevertheless, the first year’s instalment on long-term receivables and liabilities is not classified as a current asset or liability.

The acquisition cost of assets comprises the purchase price less bonuses, discounts and the like, plus purchase expenses (freight, customs duty, non-refundable public duties and other direct purchase expenses). Where purchases in foreign currencies are concerned, the asset is capitalised at the exchange rate prevailing at the time of the transaction.

Where tangible fixed assets and intangible assets are concerned, the acquisition cost also includes direct expenses for preparing the asset for use, such as costs for testing the asset. Interest expenses related to the production of fixed assets are expensed.

Expenses for own development activities are expensed on a continuous basis. Expenses for other intangible assets are capitalised to the extent that it is possible to identify a future financial benefit related to developing an identifiable intangible asset, and the expenses can be measured reliably. In the opposite case, such expenses are expensed on a continuous basis.

Land is not depreciated. Other tangible fixed assets are capitalised and depreciated on a straight-line basis to their residual value over the expected exploitable lifetime of the asset. In the event of changes to the depreciation plan, the effect is allocated over the remaining depreciation period (the breakpoint method). Maintenance of fixed assets is expensed continuously as operating expenses. Upgrades and improvements are added to the acquisition price of the asset and depreciated in line with the asset. The distinction between maintenance and upgrade/improvement is calculated in relation to the asset’s condition at the time of acquisition.

Leased fixed assets are capitalised as fixed assets if the lease is regarded as financial.

With the exception of short-term investments in listed shares, the cost method is used for recording investments in other companies. The cost price is increased when funds are injected in connection with capital expansions or when group contributions are made to subsidiaries. Dividends received are basically recorded as income. Dividends which exceed the share of retained earnings after the acquisition are recorded as a reduction in the acquisition cost. Dividends/group contributions from subsidiaries are recorded in the same year that the subsidiary allocates the amount. Dividends from other companies are recorded as financial income when they are approved.

Where there is an indication that the carrying amount of a fixed asset is higher than its fair value, the asset is tested for impairment. This test is performed at the lowest level of fixed assets which has independent cash flows. If the carrying amount is higher than both the sales value and the recoverable amount (present value in continued use/ownership), the asset is written down to the higher of sales value or recoverable amount.

Earlier impairments, with the exception of impaired goodwill, are reversed if the requirements for impairment are no longer present.

Goods are assessed at the lower of acquisition cost (on the FIFO principle) and fair value. The cost price of manufactured products includes direct material and payroll costs with the addition of a relative share of indirect costs.

When developing homes on its own account, the company uses the percentage of completion method, where the recording of project profit as income is limited to the relative share of the project which has been sold.

The practical consequence of the accounting policy applied is that total project costs incurred during the life of the project are expensed as cost of sales and the project value (costs plus share of profit) is recorded as income and capitalised on the balance sheet. Project value less payments from customers is normally recorded as work in progress. If payments from customers exceed the contractual income earned, the excess is recorded as advances from customers.

When the project is completed, the cost price of unsold homes is transferred to inventory and thereby reduces operating revenues and expenses by the cost price of the unsold homes. In certain circumstances at the termination of the project, this can result in low or negative operating income/cost of sales in the company’s annual accounts.

Work in progress related to fixed-price contracts with a long production life is assessed using the percentage of completion method. The degree of completion is calculated as costs incurred as a percentage of the expected total cost. The total cost is reassessed continuously. Where a project is expected to show a loss, the whole loss is expensed immediately.

Accounts receivable are capitalised on the balance sheet after deduction of the provision for expected loss. Provision for loss is made on the basis of an individual assessment of the receivables and a supplementary provision to cover other expected loss. Significant financial problems at the customer, the probability that the customer will go into liquidation or enter a financial restructuring, and delays and shortfalls in payments are regarded as indicators that the receivable must be written down.

Other receivables, both current and long-term, are recorded at the lower of face value and fair value. Fair value is the present value of expected future payments. Nevertheless, no discounting is done when the effect of discounting is insignificant for the accounts. Provision for loss is assessed in the same way as accounts receivable.

Receivables and liabilities in foreign currencies are assessed at the exchange rate prevailing at the end of the accounting year. Exchange rate gains and losses related to the sale and purchase of goods in foreign currencies are recorded as sales income and cost of sales.

Loans are initially recorded at fair value less transaction costs. They are then measured at amortised cost, with differences between the loan paid out (less transaction costs) and the redemption value recorded in the profit and loss account over the term of the loan using the effective interest rate method.

Loans are classified as current unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.

Guarantee work/claims related to completed sales are assessed at the estimated cost of such work. The estimate is calculated on the basis of historical figures for guarantee work, but corrected for expected variance because, for example, of changes in quality assurance routines and the product range. The provision is recorded in other short-term liabilities, and the change in the provision is expensed.

Pensions are accounted for in accordance with the Norwegian Accounting Standard on pension expenses. Defined contribution pension plans are accrued using the matching principle. Contributions for the year to the pension scheme are expensed. Early retirement commitments under the Norwegian Confederation of Trade Unions/Confederation of Norwegian Enterprise (LO/NHO) AFP scheme relate to a defined benefit multi-enterprise plan, but are recorded as a defined contribution plan since they are not measurable.

Tax expense in the profit and loss account includes both tax payable for the period and the change in deferred tax. Deferred tax is calculated using relevant tax rates on the basis of temporary differences arising between accounting and tax values as well as possible tax-related losses for carrying forward at the end of the accounting year. Temporary tax-increasing and tax-reducing differences which reverse or could reverse in the same period are offset. Recording deferred tax benefit on net tax-reducing differences which are not offset and losses for carrying forward is justified on the basis of expected future earnings. Deferred tax and tax benefit which can be capitalised are recorded net on the balance sheet.

Tax reduction on group contribution paid, and tax on group contribution received which is applied to reducing the acquisition price or directly against equity, are applied directly against tax on the balance sheet (against tax payable if the group contribution has an effect on tax payable and against deferred tax if the group contribution has an effect on deferred tax).

Deferred tax is recorded at the nominal amount.

The cash flow statement is compiled using the indirect method. Cash and cash equivalents include cash, bank deposits and other short-term liquid investments which can be converted immediately and without significant price risk to known cash amounts and with a remaining term of less than three months from the acquisition date.

Lille Løren Park, Oslo

The revenues are from Norway.

The company has a share savings programme for the company's employees who work more than 50 per cent and a share purchase programme for senior employees, as discussed in point 3 in the section on corporate governance. In 2025, a discount of NOK 6 702 000 was given to employees when purchasing shares (NOK 7 153 000 in 2024). The discount is included in the payroll costs.

For remuneration of other members of the group management and shares owned by these and by directors, see the executive pay report published on the company’s website.

NOK 2 817 000 has been paid in director’s fees in 2025.

Selvaag Bolig ASA is required to offer an occupational pension plan in line with the Act on Mandatory Occupational Pensions ("lov om obligatorisk tjenestepensjon" or OTP). The company has a pension plan which meets these requirements.

Other financial income of NOK 295.7 million (NOK 332.8 million) consists of group contributions from subsidiaries of NOK 233.2 million (NOK 307.8 million) and dividends from joint ventures of NOK 62.5 million (NOK 25 million).

Deferred tax assets are fully recognised as the company expects the position to be utilised against future profits.

Land is not depreciated. Inventory and other equipment are depreciated over three to five years on a straight-line basis.

The company rents offices at Silurveien 2 that are not capitalised. The lease runs until 31 December 2033 and may be extended for a further five years. Annual rent is NOK 3.8 million excluding VAT and is indexed annually to Statistics Norway’s Consumer Price Index.

Investments in subsidiaries, associated companies and joint ventures are accounted for using the cost method.

The company had no restricted bank accounts at 31 December 2025.

The share capital of NOK 187 531 376 comprised 93 765 688 shares with a par value of NOK 2.00. Selvaag Bolig ASA held 71 504 of its own shares at 31 December 2025 (341 own shares at 31 December 2024). These had a nominal value of NOK 143 000 (roughly NOK 1 000 in 2024). For background on the acquisition of treasury shares, see the description of the share purchase programme and the share savings programme in item 3 of the corporate governance section. For changes in the holding of treasury shares, see note 13 “Share capital and shareholder” in the consolidated financial statements.

In 2025 the company purchased 50 per cent of Rabekkgata 4-6 A-S for NOK 65.6 million. In addition, the company sold its share of the joint venture company Kirkeveien Utbyggingsselskap AS in Ski to Urban Property Eier AS for NOK 44.4 million.