«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

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 employees including 630 carpenters and production workers  Owned by OBOS BBL  Operating revenue 2014: NOK 4 billion

Sweden

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 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

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 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

PAGE 6 Hustype Kornett Hustype Accent Hustype Lindgården

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

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

PAGE 9 Kärnhem in brief  Established in 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 units, mainly in the housing co-operative segment (BRF)  Produces approx. 150 homes per year BRF Albinsroparken, Halmstad

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

Norway

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 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

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

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Experiences and how to succeed

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

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

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

Thank you for your attention! PAGE 19 BWG HOMES PRESENTATION