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EQUITIES DAILY

Equity Research • 10.08.2010

Index Value Change (%)


Danish Day Week Month YTD
OMX COPENHAGEN (OMXC20) 425 1.4 % 1.1 % 4.7 % 26.4 %
US
DOW JONES INDUS. AVG 10699 0.4 % 0.2 % 4.9 % 2.6 %
NASDAQ COMPOSITE INDEX 2306 0.8 % 0.5 % 5.0 % 1.6 %
S&P 500 INDEX 1128 0.5 % 0.2 % 4.6 % 1.1 %
European
FTSE 100 5411 1.5 % 0.2 % 5.4 % 0 %-
DOW JONES EUROSTOXX 50 P
2827 1.7 % 0.2 % 5.4 % -4.6 %
INDEX
Publisher: DAX INDEX 6352 1.5 % 0.9 % 4.7 % 6.6 %
Jyske Markets OMX (STOCKHOLM) INDEX 1074 0.8 % -0.1 % 4.4 % 12.8 %
Equities
Vestergade 8 -16 Asian
DK - 8600 Silkeborg NIKKEI 225 INDEX 9531 -0.4 % -1.7 % -0.6 % -9.6 %

Assisting Analyst: Other key figures


Sidsel Riisgaard Møller Oil 81.48 1.0 % 0.2 % 7.1 % 2.7 %

Sidsel.Moeller@jyskebank.d USD/DKK 5.67 0.6 % 0.6 % -4.5 % 8.4 %


k Source: Bloomberg - 10-08-2010.

Yesterday’s market
Translation:
Translation Services
Although the US job report released on Friday was a major disappointment, this did not seem to affect
investors yesterday. The UK FTSE 100 index and the German DAX index both closed up by 1.5%. The US
equities also increased decently yesterday due to speculations that the Fed will take another step to
lift the US economy at today’s monetary-policy meeting, which resulted in green figures for the three
leading equity indices – Nasdaq showed the best performance with an increase of 0.8%.

The Danish OMXC20 index also did well on Monday and closed up by 1.4%, as only one company, Tryg,
closed the day in negative territory. Carlsberg was the best performer yesterday with an increase of
2.5% and regained, thus, some of the ground lost on Friday. FLSmidth was also one of the best
performers, as the Chinese government announced the closing of 2000 polluted and outdated
production companies, which may be an advantage for FLSmidth.

Prior to the release of Danske Bank’s H1 accounts, this share was also popular yesterday and managed
to increase by 2%. The financial house Carngie raised its recommendation of the Topdanmark share
Read more equity- resulting in an advance of 2.1%.
research reports on
www.jyskemarkets.com/

Disclaimer:
Please see the last page
EQUITIES DAILY
Equity Research • 10.08.2010

Yesterday’s winners Yesterday’s losers


CARLSBERG-B 2.5 % TRYG A/S -0.1 %
NKT HOLDING 2.4 % JYSKE BANK-R 0.5 %
FLSMIDTH & C 2.2 % DANISCO AS 0.7 %
TOPDANMARK A 2.1 % SYDBANK 0.8 %
DANSKE BANK 2.0 % D/S NORDEN 0.9 %
WILLIAM DEMANT 2.0 % NOVO NORDISK 0.9 %
Novozymes B 1.9 % NORDEA BANK 0.9 %
COLOPLAST-B 1.9 % A. P. MØLLER - A 1.2 %
VESTAS WIND 1.9 % A. P. MØLLER - B 1.3 %
DSV A/S 1.8 % H LUNDBECK A 1.5 %

The market today


The major event today will be the release of the H1 2010 accounts by Danske Bank. The bank accounts
for Q2 have generally been quite positive due mainly to lower loan impairment charges. See our first
comment on the accounts below.
Investors in FLSmidth will focus on the Italian cement customers, Buzzi Unicem, which will turn in its
Q2 accounts. Focus will primarily be on the business environment and announcement about this.
Tonight the Fed will hold its monetary-policy meeting and make its interest-rate announcement.
Speculations about further relaxation have characterised the picture and tonight it will turn out
whether the speculations were right.
The Danish market is expected to start where it left yesterday – in positive territory – as the DAX
future is up by 0.2%.

EXPECTATIONS OF THE OPENING OF THE DANISH MARKET*

DAX Index Price DAX Future Price 30-day correlation

0.21%* 6,351.60 6,365.00 79 %


*Note: Expectations of the opening of the Danish market have been estimated on the basis on indications by the DAX future index as to
the opening of the German market. The DAX future index opens one hour before the start of trading in the Danish market. The background
for using the German index instead of the Danish index is that there is low liquidity in the Danish futures market. Historically, there has
been a good correlation between the indicated opening of the Germany market and the opening of the Danish market. The table shows the
correlation between the return at 8.15 a.m. for the DAX future index and at 9.15 a.m. for the C20 index for the last 30 business days.

Source: Bloomberg and boerse-frankfurt.de 09.08.2010

Danske Bank (BUY):


Danske Bank’s Q2 accounts were more or less in line with our anticipations, and, thus, we
maintain our BUY recommendation. JB: As expected, the net-interst income was under
pressure by the generally low interest-rate level and the top line was 1% below consensus. The
total income and the loan impairment charges were slightly better than expected and the pre-
tax profit exceeded consensus by 8%.

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EQUITIES DAILY
Equity Research • 10.08.2010

OMX C20 (30 days) Dow Jones (30 days)

430 10.800

425 10.700
10.600
420
10.500
415
10.400
410 10.300
405 10.200

400 10.100
10.000
395
9.900
390
9.800
385 9.700

S&P 500 (30 days) NIKKEI 225(30 days)

1140,0
9.900
1130,0
1120,0 9.800
1110,0 9.700
1100,0 9.600
1090,0 9.500
1080,0
9.400
1070,0
9.300
1060,0
9.200
1050,0
1040,0 9.100
1030,0 9.000
8.900

DAX Index (30 days) Oil spot price (30 days)

6400,0 84

6300,0 82

6200,0 80

6100,0 78

6000,0 76

5900,0 74

5800,0 72

5700,0 70

Switch recommendation
Jyske Bank recommends the following switches:
From Genmab (REDUCE) to NeuroSearch (BUY).
From D/S Norden (REDUCE) and Torm (REDUCE) to A.P. Møller-Mærsk (ACCUMULATE)
From Pfizer (SELL) to Sanofi-Aventis (BUY)
From Novo Nordisk (REDUCE) to Sanofi-Aventis (BUY) and Novozymes (BUY)
From FLSmidth (REDUCE) to NKT Holding (BUY)
From Nordea (REDUCE) to Danske Bank (BUY)

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EQUITIES DAILY
Equity Research • 10.08.2010

Anticipated corporate news in our equity-research universe


Company Event Effect on share price*
Danish
Danske Bank H1 accounts
*The effect on the share price is in the range of 1-5 with 5 showing a potential major effect on the share price.

Important accounts outside our equity-research universe


Company
Danish
Københavns lufthavne
US
Walt Disney Co
Sonic Innovation
European
Heidelberger Druckmaschinen

Macroeconomic events
Time Event
Danish
09:30 DKK Consumer prices
Industrial production
Industrial orders
US
13:30 USD Sentiment index of small companies
14:30 USD Productivity, unit wages
16:00 USD Wholesalers' inventories
N/A USD Monetary-policy meeting in the Fed and interest-rate announcement
European
08:00 DEM Consumer prices, final
08:45 FRF Industrial production
09:00 ESP Home sales
10:00 NOK Consumer prices
- underlying
Producer prices
10:30 GBP Trade balance
Asian and others
14:30 CAD House prices
01:50 JPY machinery orders
CGPI
04:00 CNY Industrial production
Retail sales
Consumer prices

Yours faithfully,

JYSKE MARKETS
Jyske Bank
Equities

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EQUITIES DAILY
Equity Research • 10.08.2010
Disclaimer & Disclosure
Jyske Bank is subject to supervision by the Danish Financial Supervisory Authority.

Jyske Bank's analysts are subject to the recommendations of The Danish Securities Dealers Association on the handling of conflicts of interest in investment
banks.

The research report is based on information which Jyske Bank finds reliable, but Jyske Bank does not assume any responsibility for the correctness of the material
nor for transactions made on the basis of the information or the estimates of the report. The estimates and recommendations of the research report may be
changed without notice. The report is for the personal use of Jyske Bank's customers and may not be copied.

This report is an investment research report.

Conflicss of interest
Jyske Bank has prepared procedures to prevent and preclude conflicts of interest thus ensuring that research reports are being prepared in an objective manner.
These procedures have been incorporated in the business procedures covering the research activities of Jyske Markets, a business unit of Jyske Bank.

Moreover, equity analysts at Jyske Bank cannot trade in companies and papers for which they prepare research reports. Jyske Bank may, however, hold positions,
have interests in or business relations with the companies that are analysed. The research report has not been presented to the company prior to its release. The
analysts receive no payment from persons interested in individual research reports.

Read more about Jyske Bank's policy on conflicts of interest at www.jyskebank.dk/terms

Jyske Bank's share recommendations - current allocation

Allocation of recommendations, Danish shares (number) Allocation of recommendations, all shares (number)
14
20
12
10 15
8
10
6
4 5
2
0 0
Buy Accumulate Neutral Reduce Sell Buy Accumulate Neutral Reduce Sell

Source: Jyske Bank Source: Jyske Bank


Financial models
Jyske Bank employs one or more of the following models: Discounted cash flow (free cash flow), Economic Value Added and the dividend model to determine the
fundamental value of a company. The fundamental value is compared to a relative valuation based on multiples such as P/E and EV/EBITA. The
recommendation and the price target are moreover adjusted for the expected news flow and the market sentiment based on knowledge of the industry and
company-specific circumstances. Jyske Bank’s recommendations take into account the expected development in the equity market, the various sectors and
company-specific circumstances.

Risk
Investment in this share is associated with a risk. Movements in the equity market, the sector and/or news flows, etc. regarding the company may affect the
price of the share. See the front page of the research report for our view of the risk associated with the share. The risk factors stated and/or calculations of
sensitivities in the research report are not to be considered all-encompassing. If the share is traded in a currency other than the investor’s base currency, the
investor accepts an FX risk. In connection with an ADR or similar papers, the FX risk exists relative to the currency in which the underlying share trades.

Update of the research report


The planned update of the report will be prepared immediately upon the release of the company’s financial statements.
See the front page for the initial date of publication of the report.
All prices stated are the latest closing prices before the release of the report, unless otherwise stated.

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EQUITIES DAILY
Equity Research • 10.08.2010
Recommendation Return relative to the performance of the
general equity market
BUY >5%
ACCUMULATE 0 to 5%
NEUTRAL 0%
REDUCE 0 to -5%
SELL < -5%
Source: Jyske Bank

Share recommendation concepts


Our recommendations are relative to the market development and are based on an evaluation of the forecast return within the coming 12 months. The forecast
return is the difference between the current price and our 12-month price target (the price target includes the projected dividend). A positive recommendation
(BUY or ACCUMULATE) is based on expectations that an investment in the share will yield a return above the general equity market. On the other hand, a
negative recommendation (REDUCE or SELL) implies that we expect an investment in the share to yield a return below the general equity market.

Since our recommendations are relative and risk-adjusted, it is possible to compare our recommendations across sectors and risk categories. In addition, the
potential is stated in absolute terms via our price target. It should be borne in mind, however, that the recommendation is the anchor. A BUY recommendation is
a BUY recommendation until the recommendation has been changed, also in the event that price increases have taken the price "too close" to the price target.

The future and historical returns estimated in the research report are stated as returns before costs since returns after costs depend on a number of factors
relating to individual customer relations, custodian charges, volume of trade as well as market-, currency- and product-specific factors. It is not certain that the
share will yield the stated expected future return/s. The stated expected future returns exclusively express our best assessment.