Selvaag Bolig ASA

Good morning and welcome to the second quarter's results presentation for Skjelvåg Bolig. My name is Sverre Målvik, I am the administrative director. I will, together with the financial director Kristoffer Brunemål, go through today's agenda. I will start by looking at the highlights from the quarter and the first half year. Then I will look at the operational side. Before Kristoffer goes through the financial side, we will take a look at the market and future prospects. Kvartalet var prega av de vanskelige tidene og krigen i dette årsåkvartalet, men vi solgte langt bedre enn det vi gjorde i en annen halvår i fjor, men dårligere enn samme periode i 2022. Altså dårligere enn i 2022, samme periode, men langt bedre enn andre halvår i fjor. Så det er positivt. Vi fikk et greit resultat gitt disse omstendighetene. Det vil si vi er ikke fornøyd med resultatet totalt sett, men vi fikk et bra resultat gitt omstendighetene, og i forhold til de prosjektene vi overleverte. Det vil si vi overleverte prosjekter med utgangstrøk, med dårligere marginer enn det vi hadde i samme periode i fjor. We have had a good market for buying tomatoes. We have bought tomatoes at Tomtebank with over 1000 units so far this year. And now landed in Q2 a project in the inner city of Stockholm. Which became our first city project with 175 units. Very pleased with that. We will come back to that later. Yes, and we then pay an exchange rate of 1 kroner per share in relation to the results in the first half year. A little carefully, in relation to the uncertain times. If we look at the key figures, we had, after IFRS, 837 million in turnover per quarter, an adjusted EBITDA margin of 11.4%, 1.571 on the half year, and 13.1%. In the course of the calculation, lower revenues due to lower sales, and 542 million kvartals on a 10% margin, and half a year 1137-11.1. Usually, these figures tend to be more the other way around, but due to low sales, there will be more cost-effectiveness in NGAP. The output rate that counts, and therefore it will be lower, Brunvold will get more into that when he gets into it. In terms of operations, I have talked about this since the Q4 report in February. We have a safe business model in that we pre-sell 60% before we start building. Then we lock the enterprise costs. The main reason is that we deliver as good results as we do today. If we hadn't done that, inflation and wage and price inflation would have eaten up a lot of our bottom line. What we decided at the beginning of the year was to change the business model a bit. Usually, we only take precautions about pre-sale, that is, we lock the building cost before we start selling. Now we have changed that, and on some projects we start selling without writing a total price contract, but we wait to do that until we have sold or until the building cost comes down to a more acceptable level. So we also take two conditions for the customer in single projects. We did that on two projects in Q1, which have been very successful, at Langehus and Solberg in Follow. They are being contracted now, and they will be able to get started. So that's positive. We will continue to do that on a number of other projects, which we will start selling in September. We will take conditions for both building costs and sales levels. will help a project in Stavanger and other projects. The reason we do this is that we see that the building costs are falling. Then it is much better to wait with contracting until the building costs come down to a level that makes it possible to get satisfactory profitability to carry out the project. We have a lot of faith in that. It will be very exciting to see what happens in the next six months. As I mentioned, it's positive for actors like us, that we get a little counter-conjuncture, and that is that it's easier to get hold of property. We have bought a lot of property this year, over 1,000 units. And recently, in the quarter, we bought a property, or got a market announcement, as it's called, in Stockholm, on a city project, which is then... Compact houses, connected common areas. That is to say, full-fledged apartments, but they are small. Much smaller than the ordinary apartments we build. It is connected to a large common area, as you can see in the illustration here, with a large roof terrace. It is lounge area, training room, a bit of everything we have on plus. We have tried to achieve this in Oslo over a long period of time, but the politicians have not been able to do so, because the minimum limits in Oslo are too high to allow us to build a room in the way we want to build it here. In Stockholm, they are more optimistic and think that this is fine, and that is why we have achieved this. We are very pleased with this. It is located in the inner city of Stockholm, and is very central to Stockholm. That comes with 25. If we look at the sales, as I said, it was worse than last year, but better than the second half of the year. We sold 79 on our hand in the quarter to 440 million. In total, the first half of the year, 196. A little more than one a day. The other half year, we sold 0.5 units a day. And this sale is still at a rate of about 1 unit a day. It doesn't sound like much, and it's not, compared to a normal market, but it's still good and far better than it was during the financial crisis. It could have been much worse than this. The rate of the year is low this quarter, because we had a bad other half year last year. Approximately 1,760 per year, 402 units brutto, 322 netto. Buildings start in 1983, while we finish with 162. This is something that I have overlooked in the two previous reports, that since we have the model that has changed, sell first, contract in the autumn, buildings start, then there will be a few buildings start in the first half of the year, and then we hope for far more buildings start in the second half of the year. given that the hypothesis is correct, that the building costs will increase. Something that seems to be correct. We have a lot under contract now, so we have received a lot of offers, both in Sweden and Norway, and it looks good, especially now in Sweden, the building costs have gone down. Units under production, 2018, to a value of 5.5 billion. 68% of that was sold at the beginning of the quarter, and more now. And 86% of this is in Storoslo. Expected finishes in the future are the same, 744 for the year. 83% of what was finished this year was sold at the beginning of the quarter. Yes. You can start, Molde.

Good morning. Let's take a look at the financial highlights of the quarter. We start as usual with the IFRS results, where the income and costs of the projects meet the results by handing over the housing to our customers. We handed over 155 units, only one unit from the collaboration projects this quarter. This quarter's main delivery is Sandsli in Bergen. We have Lerik Brygge in Stavanger, Lønnskog station town, and we have delivered a number of single-home and residential apartments in the Stavanger region. The average price delivered to the apartment was about 5 million kroner. The total revenue was 837 million kroner, including 17 million kroner in other revenues, which is the project revenue for the collaboration projects, and the operating revenue plus the service center this year. The project cost was 709 million kroner, We still manage the project well and deliver enough per quarter with costs within the budget. We have clear contracts with our entrepreneurs and there are no surprises with the additional invoicing here, which can often be done elsewhere where we do not have a fixed price. The other costs came in at 57 million, approximately a little lower from the same period last year. We have a stable cost base with a stable number of employees and other operations, so no surprises in this. The report shows an adjusted EBITDA of 95 million. Here we have excluded these financial costs, which are in the concept of commodity costs at IFRS, at 29 million. This corresponds to a margin of 11 percent. This is then compared to the revenue in the period last year. We had a revenue of 966 million and a margin of 24 percent. What is Sværo talking about? This is falling in margin very much because in the same period last year we implemented a lot of large ocean projects with margins between 25 and 35 percent. Now we are more between 10 and 20 in what has been implemented in this quarter, since we are implementing a lot outside the large ocean area. All the way to the bottom, we see a result on the share at 55 euros, which went down from 1.90 last year. Also worth noting down here, because we also have much fewer units compared to the quarter last year. Let's have a look at a pro-forma strategy, where we take in our share of the income and costs in the collaboration projects, to get some more comparable numbers, quarter by quarter. These are reported in the official IFRS strategy, on the net and on its own line, but we have called it brutified. In this regime, we have a turnover of 141 million, margin 12%, against 1.4 billion and 19% in the same period last year. Also here, less units, less turnover, and more projects with lower margins, therefore the margin fall. The same result at the bottom, 55 euros per share against 1.90 in last year's quarter. Let's look at the half-year. 305 units were delivered, 14 of which were from collaboration projects. Total turnover of 1.6 billion, margin of 13%. Adjusted EBITDA of 205 million, down from 293 million. Here we see the same volume. The margin is falling, as we mentioned, due to overlaid projects outside of Storoslo. At the bottom we report 1,25 kroner per share as a result of the half-year, down from 2,30 kroner in the half-year of last year. Briefly about the Proforma-regarding, which includes our share of the co-operative projects for half a year. 1.6 billion in turnover, 13% margin against 1.3 billion in turnover and 19% margin in response to last year. The same results at the bottom. We also have these Proforma-regarding in the quarterly report, so those who are interested can look closer at the details there. Then we move on to segment reporting, which follows Norwegian regulatory rules and the running calculation method. The running calculation is that we take all the projects in production, we take the sales grade in these times the completion grade, and then we get an output grade, which means that we run out of revenue and results in the project's lifetime. This reflects better the merit creation that happens in the company along the way. In this regime, we see that the revenue falls to 542 million, and a margin of 10%. This margin is after overhead, so it means that the project margin is a lot higher. The fall we see here is that when the sales development is relatively weak in the quarter, then the revenue and the results of the projects are reduced to cover the fixed costs at the bottom. So you have a volume effect, as well as some margin drop in the projects during production. If we look at the 12-month rolling turnover, it falls to almost 2.5 billion, and the margin is 12%. It is important to point out that we still have good project margins, but when the volume goes down due to sales, the margin also falls when we close the costs. Let's look at the cash flow. Not much change here. It went into the quarter with 411 million in the bank. Positive cash flow from Drift at 98 million is linked to a decline in the stock market. We have overlaid many units and have few start-ups. The start-ups we have in the quarter are collaborative projects, so that does not meet the consolidated figures. No major changes on the investment side. Cash flow from financing is negative with 122 million. This is due to the exchange rate of 187 million, which happened in the quarter. A decline of 19 million, so out of the quarter we have 392 million in the bank. The balance, no major changes here, still a total balance of 5.7 billion, a solid income share of 40%, including a bookkeeping income per share of 24.2 kroner. It is now down. We have calculated the exchange rate for 2 kroner per share in this quarter. It is now down from 42 to 40 percent. In relation to the exchange rate we are proposing now, as I was told yesterday, the ECO ratio would have been down to 38 percent. is down by 283 million, and will come back to it. Customer service increases quite a lot, by 223 million. This is due to the fact that the deliveries we had, among other things in Bergen, took place in the last two weeks of June. And then the money will be on the account of the customer service until out in July, before we get it paid off. So no drama in that. We were in on the cash. And then we have these forecasts from our customers on 79 million, which is included in the second short circuit. This is lower than we had a few years ago, and this is due to the fact that we are taking a lower rate from the customers. Let's look at the stock storage. This is just a little lower. The book for land management is down by 38 million to 607 million. This is due to the fact that we sold these single-home house land in the Stavanger region. Vare i arbeid is down by 328 million. This is due to the fact that we have handed over and did not start building anything in the quarter that meets this balance. What we started building was, as I said, co-operative projects, and that is outside the consolidated balance. The finished goods storage is up to 83 million, and this is due to an increase in finished and unsold units. This is now at 43 apartments, which is an increase of 6-7 apartments from last quarter. We are comfortable with this level. These are finished new units in fine and good areas, central areas, where there is little supply of new homes, so we expect to sell these in the coming months. Let's look at the yield per half year, 2.4 billion in total interest rate yield, where 1.7 billion, the big one, is of course the construction loans. We have also yielded to Urban Popular, as usual, at 487 million. This is the return sales figures and sales credits, but now down from last quarter. We also have some debt loans on the property we have in the balance, which we did not sell properly. This loan is 200 million. We have no change in the conditions of these loans, the same margins, and we have two top facilities, which we have not yet reached at the beginning of the quarter. We report a net interest rate of 2 billion, up from 1.9 billion in the previous quarter. Now we are going to look at the exchange rate. Selvobole has prioritized its entire exchange rate and gives good and solid exchange rates to the shareholders. We have an exchange rate policy that says that we should pay a minimum of 60% of the net result of the exchange rate, divided into two payments this year, in May and August. If we look at the history here, we have delivered a result per share of about 58 kroner and paid 54 kroner in exchange. This includes the Urban Pop Property transaction, where we paid an exchange rate of 22 kroner. Exchanges for half a year are paid at 1 kroner per share, and this makes up 80% of The result per share at 1.25 in half a year. If we look at the average from the exchange rate, and then we correct the extraordinary 22 kroner on the Urban Property Transition, then we have paid an average of 68% of the result per share. Our goal is to continue to give direct issuance to our shareholders. We are taking it down now, as Sverre mentioned, due to uncertain times. We will also try to prioritize it in the future, but that will lead us towards the future prospects, what we can do to start building, self-sufficiency and liquidity forecasts. Finally, we will look at the return on the net capital. This is calculated with the last net profit of 12 months, and divided by the net capital at the beginning of the 12-month period. Here we have delivered 241 million in the last 12 months, which corresponds to a return of 10%. Now we will continue with an update on the market.

We're starting to look at, as usual, the Oslo market, as we usually do, which is written a lot about, as you've probably noticed. There's absolutely no change there, almost to the worst of things. There's a slow regulation that makes it difficult to get enough housing. It is a question and a need, so-called, of 3,300 units. It is probably much larger than that, but that is what the description suggests, which depends on what has been completed. That is to say, the less completed, the lower the future need is estimated to be. That is how the model works. No matter what, 3,300 units. This year it is estimated that it will be 3,000. Next year, 2,700. And 2,000 in 2025. It is regulated all too little in Oslo, so it may well be that this trend continues. If you don't do anything about it, this will continue down to even lower levels than what we see here. In the old Akershus region, the need for 5,400 units is estimated. Again, you see that it is based on what is completed. These regions are just as big, Oslo and Gammel Akershus, have as many people. No reason to think that there are more people who want to live in Akershus than in Oslo. So the need is probably, the answers should be quite similar. Anyway, 5,400 units estimated to be the need. Here it is completed something more than that next year, and then it comes down in 2025. This is also due to the fact that several of these municipalities in Akershus, such as Lørnskog, have regulated and built very, very much. And then they start to hold back a little, because they can't keep up with schools, kindergartens and infrastructure and so on. That's what often happens if you drive a little too much. If you look at these two regions in total, there is still a balance in relation to the supply and demand side. In conventional counter-conjuncture situations, it is the opposite. Then there is often a much higher supply side than there is demand and need for. We don't see that now, and that is a reason why the price is so high. If we look a little more in detail at that, we see now In Oslo, there were roughly 1,200 units of new housing for sale this year. About 500 have been sold, and more than that have been sold. So now we have around 1,000 units that are sold in Finn today, and there are about 1,000 units that you can choose to buy in Oslo. Akershus, the same trend. It had a much healthier growth rate, almost 3,500. It dropped almost 1,400, sold more than that, and then also a decline there. This is a market with a strong rising interest rate and war, so it's expensive food. It's quite... It says a little about how low... the supply side is in this region, or how much it affects the low supply side in Oslo, and how it affects the whole region. Bergen, Trondheim and Stavanger. If you look at Bergen, there is also a very low supply side. This is largely due to the fact that there is little regulation. But there is also this factor that I was talking about in the previous report, that the building costs are so high that there are terribly many builders who put the project in the closet because they do not get the salary. The reason is that we have done what I mentioned earlier, by selling first and contracting in Q3 and Q4 to try to achieve satisfactory building costs. Trondheim, there it is. And has always been very good, or has been for many years, very good regulation pace. So there is a large supply side, and there are many who have managed to put out good projects in the market, so there is a healthy supply side. There is also an increase in the supply side, which is more than you would normally expect in today's market. Stavanger has also turned, there is a lot. There is a high demand. There are many jobs that have been created in Stavanger over time. They come from low levels, so there is a pretty good pressure in the market. It has sold more than it has put out. Looking at this towards the population, which we have done in the past, we still see a very low supply side in Oslo. One and a half new homes per thousand capita. Around 5 in Akershus, also around 5 in Trondheim, and 1.5 again in Bergen, a very low supply side. And also when Stavanger starts to come down. So Stavanger, Bergen and Oslo will probably be the markets we want to see that will be able to keep up with the price of the year, if I were to put it in the glass bowl. If we look at the used market, which to a certain extent is connected to the new housing market, Særlig når det gjelder motkonjunktur, når det går inn i eller mot eller endringer i As we have had now with rising interest rates, our customers will sell their homes first, or people will go from selling their homes first, from buying first to selling first. Then you get an increase in the supply side, as we see is the case, and as we also saw in the previous report. It has not continued to escalate, it is not particularly high. In Oslo it is actually low. On 2000, if you go back to the previous period, 17-16, it is higher than it is now. What we see in Oslo is also a fairly large growth of single homes, small houses, row houses, single homes. Expensive units have grown, and that is quite natural, because people expect to have a price, a higher price expectation perhaps, than what they get sold for because of the interest rate increase. Leilighetstilbudssiden er ganske lav fortsatt. Akershus, noe høyre tilbudsside på brukt. Bergen, Trondheim og Stavanger, veldig lavt faktisk i forhold til hva man kunne forvente. So I think this will go down again this autumn, since those who have put out and are going to sell first now, when it is taken away, this will be rebalanced, so you will probably get a much lower supply side also used. Which again will put pressure on prices. We see here that so far this year, the Oslo prices are up by almost 7%. That's a lot, and that's from high levels. The average price is now almost 94,000 kroner in Oslo, which is very high. Bergen also increased prices by 4.2%. Trondheim, and not least Stavanger, by 10%. But they come from low levels. Stavanger costs an average of 44,000 kroner per square meter. While it costs 94,000 in Oslo. If we go back to after the financial crisis, it was almost the same. This shows how bad the development has been in the Stavanger region. Or how strong it has been in the Oslo region. Strong price development. Many think that this will end in Oslo negatively this year. I don't think so. I think Stavanger, Oslo will end in a plus this year. Then this Trondheim will go down, not much, but we'll see. If you look at the development in July, the prices in Oslo increased by 0.7%, which is strong in today's market. Trondheim is down 2.3, Bergen is down 3, and Stavanger is down 0.4. If you look at the last 10 years in Stavanger, it's very strong. It looks positive. We'll see how this goes on, but it depends. The inflation rate was lower than expected. It has a lot to say about what happens to the interest rate in the future. How much is the rent, and when you top it off, will affect the new housing market, of course. And people's thoughts about what the housing will cost when they take over the housing they buy from us, is what matters, and how much they get for their own housing. If you think that the rent goes up in that period, then there are many who may not dare to sell, buy, and commit themselves to that, because they are unsure of what they get for their own housing. And vice versa, as soon as the interest rate reaches its peak, more people will come in to buy new housing. We see in Oslo again that people are not able to get regulated property, which is both frustrating and at the same time positive in that we keep the price up. But at least that's what affects Storoslo, and also Bergen. Another thing we see now is that there is a very good interest in our evidence. We have housing, residential housing, that costs 5.5 million. Not especially what we have now, it's needs housing. And we notice that there are a lot of people who want to buy. And then there are a lot of people who get no in the bank, of course, too. That's a problem. It has become so expensive to rent, so before we said that When the interest rate passes 3.2-3.3%, then you can rent. Now that the rental prices have gone up so much, it is no longer true. It is so expensive to rent in Oslo, for example, that people would rather continue to buy. When you pay 16,000-17,000 for a two-room building in a month, you can earn quite a lot of money after tax. We see that the cost of building is decreasing. This is important, both for the margin picture and the possibility to start building in the future. The number of start-ups we want to have remains the same. So it's exciting to see in the autumn. The signals throughout the summer, and what we have received as an offer, is that the hypothesis is correct, that prices are falling. In addition, the crown has strengthened quite significantly in relation to the worst. It is probably at 11.20 or now against the euro in relation to 12. And that has quite a lot to say when it comes to cement, steel and other materials that we use in our buildings, glass. So... Given that, we are in position. We have a lot of ready-made projects, and we will be putting out a lot now in the coming time. Let's go through some of the projects we have, both to look at what we have going on, where we have more things out, and what we are coming up with. Lønnsjøen Stationby is a large project that you probably know well. It is located by Snø. In Lørenskog, we have about 800 units for sale. We will launch a new project this autumn. We will launch a plus project this autumn. We will not launch it this autumn, even though we could have done so. We are waiting for the plus project for the new year. In Skårebyen, we have a large project that has gone away very quickly. We have about 400 units. We will launch a new one this autumn. In Landås we will have a new regulated field. We will have small apartments in the autumn and a plus project in the new year. In Kallnes we will have 500 more units regulated. Plus units will also be added, but not before next year. Ringve in Trondheim, there we have started about 200 units. Then we came up with a new trend, Nordmarkedetillatere, and we also regulate, detail regulate, 350-ish units of those who are missing from field 2 there. There it will be put out quickly after it takes off. There it tickles and goes, but Trondheimsmarkedetillatere is calmer than other places in our region. in our areas. Lervik, we have about 200 units. We have a new project in September. We have a lot of interest. Trust the Stavanger market now. It will be exciting to see if that is true. Solbergskogen Plus is one of the projects we will launch with cost or enterprise maintenance. There we have sold about 50% of what we have put out. It will be built in the fall. Then comes the selection of projects that will come in the future. Ballerud is a project in Bærum that we are contracting now. It is about 100 apartments and 60 apartments. We are also releasing that plan in September. There is a lot of interest in that. So it will be exciting to see. We are also contracting that now, so it will be exciting to see what we end up with in building costs. But that will probably be fine. It looks like... Solheimsvannet is located on Minde in Bergen. We have quite a lot there, but the first step we are taking now is a plus project. Also a lot of interest around second-hand treatment, so it will go through regulation now in August. Given that it does that, it will also come out into the market this autumn, so that will be exciting. Stockholm, as I mentioned earlier, is a large city, and it is a market that is well-functioning. There we tried to contract for 7-8 months ago on a test contract, because the project had been ready for a while. And then we now ran a sharp contract, or I would say a competition, a three-price competition. The prices have dropped considerably, so there we now have, it looks like, building costs that are so low that we can sell in competition with ordinary houses that the competitors are doing. Then we have a lot of hope that this will go well, so we will also put that out now in autumn. So that's also very exciting. It's the only plus project in the town. So it's of great interest. The only thing left is to see if the Swedes take the step and buy a plus house. I have great faith in that. In 2024, we will hopefully get rid of the Lørenvagn, which is our old headquarters, which we have been regulating for eight years. 200 units. It is also a current project that will certainly fly in any market. Fredrikstad is exciting. There we have a large joint venture project with Jotne. It is 2,000 units. The regulation plan has come a long way. So when it is regulated, which we hope will happen either this year or early next year, we will probably put it out on our part. This is a very exciting project, a bit like the 20-year-old Monaco Bridge in Oslo. In Lille Aker we have a nice high-end project with 150 units, which we also plan to launch next year, which is fine. Then there is this city project, as I mentioned, Hornsberg, which is located in the inner city of Stockholm. We have a plus project at Gjesseheim. Gjesseheim is a big investment. We have a job there with a local actor who is very much a part of a plus project. And a plus project is differentiated from other projects, so we have faith that we can achieve that when the market is modern. And then we have Fornebu, which I'm sure many are wondering about. That will come after the sales start in 2025. Bjerke, 2026, given that the politicians in Oslo get it, we expect to get a little more focus on that now, we've noticed. Nacka in Stockholm, Nacka is a bit like Bærum for Oslo, you could say. It's a nice area in Stockholm, where we're going to build a nice plus project. Slakthusområdet er litt grønne løkka isch, ligger nede ved Globen. Kjempefint område, høye priser, veldig trendig for tiden. Der kom vi også med et prosjekt i 26, kanskje 27. Det er reguleringsavhengig, dette her. Disse svenske eiendommene er jo markanvisninger, så de ligger i, kall det, balansen til Stockholm stad, og gjøres opp ved byggestart, hvis man... If you do things right, you can in theory pay for it after you have pre-sold. That is what we are focusing on. In summary, we sold better in the first half of the year than in the second half of the year. Let me correct my poor introduction. but worse than the same period last year. Because it was before the war, so it was a usable market. If you compare it with the market that is comparable in the war period, we have sold better in the first half of this year than in the other half of last year. The results are good, given the projects we have survived. Again, it is very important in our business model that we lock down the building costs. If we hadn't done that, it would have been much more unpleasant to be here today. Then we would have eaten up half of the bottom line with wages and pricing. We have received a lot of market recommendations in Stockholm. Veldig bra. Det å vokse organisk i Stockholm var en god beslutning. At vi kommer med et første City-prosjekt er spennende, som vi ikke har fått i Oslo, men svenske politikere omfavner dette og synes det er en god idé. Det tror jeg helt sikkert kommer til å bli en suksess. Then we pay for the exchange a little more carefully than otherwise, but that is responsible given the time we are in, and there is a lot of uncertainty, as I mentioned, depending on what happens with the cost of building and the world view, so it is a little more conservative. That was what I wanted to say, so now we can take questions if anyone has any.

When it comes to the cost of construction, you say that the cost of construction has dropped more in Sweden than in Norway. Is it possible to quantify where the cost of construction is now in Sweden and Norway, and maybe also say something about what kind of changes you have experienced since you were here last May?

In Sweden, this is a summarized picture. When you run a competition, it's usually three, four, five, maybe more, who calculate. But if you look at the average in Sweden, it has fallen by 10-15% compared to when we took the first price indication. That is to say, price indication. There are three people who look at it, but they don't calculate sharply. They have a basis, they know what the real is, and they calculate half-sharp. That means that they do not go to sub-entrepreneurs and locks and so on. But now we have received sharp offers. And then the weight of those three is 15% lower. And then you are in Stockholm at a low 40% or almost 40%. That's good. When that's said, the stock market also turns the other way when the market goes down. So it's price and volatility that matters, and supply and demand that should be. In Norway, it's slower. It has been now. But what I've discovered through the holidays is that now it's starting to hurt, of course, when you don't have anything to do, and there are many entrepreneurs who lose their jobs because they can't make a pre-sale, or they just can't get started. So I notice that I've gotten messages, and from entrepreneurs who want to calculate specifically on jobs. And there are many who calculate. Then it will be exciting to see where we end up. But we already know that it is significantly lower than a year ago? We know that. The question is whether it is low enough. Is it 47-48 Inc. per square meter now? Or would it be better to go down to pre-war times, which is perhaps 44-45? That would have been the best. But it's much better, and you get the prices closed. I don't have much more information than that right now, but we are currently working on a number of projects where we have received a grant, so we'll see what we end up with.

You say that it is possible to start sales up to 500 units in the second half of the year, if the market conditions allow it and the project economy is there. Is it possible to say what kind of market you need to have in order to be able to get 400-500 units and compare that with what you see out the window right now?

The reason why we are going to put out many now is that we see that we have sold well on what we have. And we see now, for example, in Stockholm, where prices are so low, we can put out the houses in the market at what we call market prices. And that is the reason why I think we can do well with this. It is always difficult to predict how much we will sell at Ballerud and Stockholm. In Stockholm, we have 1,200-1,300 customers. In Minde, we have 1,200-1,300 customers for individual projects. In Stavanger, we have 1,000. How many people will buy depends on the price. Many competitors have put out projects. is not on market price. And of course, it is not that easy. Then you will not get sold. What we now look to be able to do, and that is why we are putting out more now, is that we will be able to put out projects for market price, or at least that is what others have projects lying around for. They may not sell as much, but if they can get a project or something extra from us, we think it can do the trick. But it is of course terribly difficult to say how much you can sell. It is very difficult to say. We are also in an autumn situation. Going towards the fourth quarter, it will be even heavier. Often. But it is at least the case that we believe, or I believe, that we will succeed both in Stavanger, Bergen, And stop it, I think. And then we'll see. And not least in Bærum. It can be very good. But it depends on what is written in the media. Of course, a lot of people put themselves at risk if double-raising is mentioned again and the interest rate continues to go. Then you stop it in the end. It is the right of service to do this.

Another question. You have communicated for a long time that the project margin of around 18% is what you can expect over a cycle, with flat housing prices. If you look at what is in the production pipeline now, and maybe also take what you contract up now and start building in, and maybe deliver on in 2024-2025, Is it a fair assumption that the project margin is lower than the 18% that is expected over a cycle? Or can you hope that you will manage that?

You can say that the margin of 18% is because the project had been in Urban Property from purchase to sale. And many of the projects that were sold to Urban Property were in a phase where they were quite close to implementation. Then you don't get that development, margin development of the entire value chain, so then the margin becomes lower. In other words, it should be about 10% of all those that you took out right after it was sold to Urban Property. in a flat market, and then you can discuss, or there is not much to discuss, it is not flat now, because now the enterprise costs have gone very high, then it is no longer the same, therefore the margins are negatively affected by that. We haven't seen much of it, but 100% of urban property tombs are being built now. The margin will also be affected by that. My answer is that what we mean by 18% is a flat market. If the market goes up, there will be more. If it goes down, there will be less. Now the market hasn't gone up or down in many of these projects, but the cost of building has changed significantly. Therefore, the margins are getting lower. It will be very exciting to see how much of this we can avoid now by contracting without this top. We contracted a lot before the war, and then we almost didn't contract anything at all, and then we contract now, and then we hope to avoid getting that cost stop, and then try to hit it further down again, which again would make our margins better than anything else. We'll see. But we can't stand for 18% in a market where the building costs have gone up by 10,000 kroner per square meter. That's difficult.

No questions from the web?

No.

Now it came from Simen Mortensen. What can you say about the saga so far in Q3?

The saga so far in Q3 has been on the line with the rest of the year. We are on average quite active throughout the day so far this year. So, same pace.

That was all.

Good. Then we say thank you for today, and we'll see you again in November.

Thank you for today.