1. «From single-family to multi –family houses? Single-family house producers possibly need and should enter the market! Why and how to take that step? Experiences from Scandinavia Ole Feet, previously CEO, BWG Homes AS

2. BWG Homes – a Scandinavian player PAGE 2  The business:  Affordable quality housing  Residential projects in the outskirts of the larger cities  Production of single homes for customers with land  Streamlined construction processes  Long-term profitability at moderate risks  More than 80 years in business and 200,000 homes produced  Operations in Norway and Sweden  Approx. 1 100 employees including 630 carpenters and production workers  Owned by OBOS BBL  Operating revenue 2014: NOK 4 billion

3. Sweden

4. BWG Homes AB in brief  Production of prefabricated single and multi-family homes  Two strong brands – Myresjöhus and SmålandsVillan. Nationwide representation  Modern production facilities in Myresjö, Vrigstad and Sundsvall producing volume panels and box units (modules)  Land bank capacity of approx. 1 500 units  Produces approx. 800 homes per year  Focus on residential projects in growth regions as well as sales and production of single homes  Expanding business to highly standardized multi- family homes to increase the market share and utilize the production capacity PAGE 4

5. Myresjöhus brand  Established in 1927  Single home portfolio of 50 house models for private customers with own plot of land. 60% of revenues  40% of revenues from residential projects, professionals and partners  Land bank capacity of approx. 1 500 units  Panel based production in Myresjö factory  Assembled at the building site Marketing and sales Construction 20 % prefab, 80 % on site Project development Acquisition of land Project idea Delivery Project planning PAGE 5

6. PAGE 6 Hustype Kornett Hustype Accent Hustype Lindgården

7. SmålandsVillan brand  Single home portfolio of 15 house models for private customers with own plot of land  93% of revenues from private customers with own plot of land. 7% of revenues from residential projects, professionals and partners  Box units (modules) produced in own factories in Vrigstad and Sundsvall  Completed at the building site; under roof within 1 day  Modules also used for row-houses and multi- family homes with two floors (Start Living concept) Marketing and salesProject planning Delivery Construction 90 % prefab, 10 % on site Project development Acquisition of land Project idea PAGE 7

8. Start Living-concept – to be developed to 4 floors PAGE 8

9. PAGE 9 Kärnhem in brief  Established in 2003. Lean organization, based in Växjö. 40 employees, including project development and factory producing wall panels  Acquired by BWG in April 2013  Core business is development of residential projects. House building performed by external contractors  90% of revenues from housing co-operative projects (BRF)  10% of revenues from own residential projects  Land portfolio with capacity for approx. 1 300 units, mainly in the housing co-operative segment (BRF)  Produces approx. 150 homes per year BRF Albinsroparken, Halmstad

10. PAGE 10 BRF Rynningsåsen, Örebro BRF Ullna Park, Täby BRF Biskopskolonin, Växjö

11. Norway

12. PAGE 12 Block Watne in brief  Residential project development at affordable prices in the outskirts of larger cities and pressure areas  The strongest brand in the Norwegian market  Delivered approx. 100 000 homes since 1950  Produces approx. 550 homes per year  19 regional offices from Trøndelag and southwards  Row houses, multi-dwellings and low-rise apartments  97% of revenues from own residential projects  550 employees; including 350 carpenters Residential project Vardefjellet, Romerike

13. Same construction methods for all types of products  Residential projects: 97% of revenues. Land bank capacity of approx. 16,000 units  Single home portfolio of 24 house models for private customers with own plot of land  All construction at the building site; carried out by own employees Marketing and sales Construction on site Project development Acquisition of land Project idea Delivery Project planning PAGE 13

14. PAGE 14

15. Experiences and how to succeed

16. PAGE 16 Housing starts in Sweden 1992–2017 Source: Prognoscentret AB, September 2015

17. How to succeed - BWG experiences PAGE 17  Wood is in itself an eco-friendly building material  Competence, dedicated staff, land bank and capital are fundamentals  Production of wood constructions is efficient and profitable due to easier administration and lower costs; assumed high degree of standardization  High degree of prefab production gives shorter construction period at the building site  Focus on continuous improvements in design and construction methods

18. How to succeed - BWG experiences, continued PAGE 18  BWG achievements so far:  More robust business with a wider range of products  Higher utilization of factories – scaling effects  Increased standardization  Growing profitability  Going forward  Home construction will be more demanding due to more strict requirements to energy and environmental issues  Highly standardization and continuous improvements of products and production are key factors

19. Thank you for your attention! PAGE 19 BWG HOMES PRESENTATION