EQUITIES DAILY

Equity Research • 28 July 2010

Index Value Change (%)

Danish Day Week Month YTD
OMX COPENHAGEN (OMXC20) 414 0.4 % 3.2 % 2.4 % 23 %
US
DOW JONES INDUS. AVG 10538 0.1 % 3.0 % 3.9 % 1.1 %
NASDAQ COMPOSITE INDEX 2288 -0.4 % 3.0 % 3.0 % 0.8 %
S&P 500 INDEX 1114 -0.1 % 2.8 % 3.7 % -0.1 %
European
FTSE 100 5366 0.3 % 4.4 % 5.8 % -0.9 %
DOW JONES EUROSTOXX 50 P
2769 1.0 % 5.4 % 3.8 % -6.6 %
INDEX
DAX INDEX 6207 0.2 % 4.0 % 0.8 % 4.2 %
OMX (STOCKHOLM) INDEX 1059 0 %- 3.1 % 3.3 % 11.3 %
Asian
NIKKEI 225 INDEX 9755 2.7 % 5.1 % 0.6 % -7.5 %
Other key figures
Oil 77.5 -1.9 % 0.1 % -1.4 % -2.3 %
Publisher: USD/DKK 5.73 -0.2 % -1.6 % -5.7 % 9.3 %
Jyske Markets Source: Bloomberg - 28-07-2010.
Equity Research
Vestergade 8 -16
DK - 8600 Silkeborg
Yesterday’s market
Assisting Analyst:
Sidsel Riisgaard Møller For the second day on end, banking equities took the lead in the C20 index, which yesterday closed up
by 0.4%. All four banking equities in the C20 index were among the five top performers after the release
Sidsel.Moeller@jyskebank.dk
of good news from the Basel Committee and good accounts from the Swiss bank UBS and Deutsche
Translation: Bank, among others.
Translation Services Generally banking equities attracted most attention during yesterday’s trading session as the Basel
Committee will ease the requirements of capital and liquidity reserves. This was good news, in
particular to the French banks, and for instance Credit Agricole rose by 10.1%. We did not see quite as
high increases at index level as the UK FTSE 100 and the French CAC 40 closed up by 0.3% and 0.8%,
respectively, while the German DAX index rose by 0.2%.
Also, the Basel Committee contributed to the positive opening in the US market, but the disappointing
consumer-confidence index for July turned the sentiment around, and therefore only Dow Jones closed
marginally higher as it increased by 0.1%.
In Denmark, rising by 4.2%, the Danske Bank share was the top performer; it was followed by the
Nordea share, which increased by 3.3%. Accounts from UBS and Deutsche Bank revealed bottom line
Read more equity results that were better than expected, and in connection with UBS, the surprise was the stronger-
research reports on than-expected trading income, while Deutsche Bank reported fewer write-downs on bad debt than
www.jyskemarkets.com expected.
Falling by 1.9%, A.P. Møller–Mærsk was at the other end of the index; this development took place after
the rival DP World, which runs 50 port terminals globally, stated that container volumes have
Disclaimer: increased by 16% over the first six months of the year.
Please see the last page
EQUITIES DAILY
Equity Research • 28 July 2010

Yesterday’s winners Yesterday’s losers

DANSKE BANK 4.2 % A. P. MØLLER - B -1.9 %
NORDEA BANK 3.3 % DSV A/S -1.9 %
WILLIAM DEMANT 3.2 % A. P. MØLLER - A -1.7 %
JYSKE BANK-R 2.9 % DANISCO AS -1.2 %
SYDBANK 2.6 % COLOPLAST-B -1.1 %
Novozymes B 2.2 % NOVO NORDISK -0.8 %
TOPDANMARK A 1.7 % VESTAS WIND 0.3 %
NKT HOLDING 1.7 % D/S NORDEN 0.7 %
H LUNDBECK A 1.4 % TRYG A/S 1.1 %
FLSMIDTH & C 1.3 % CARLSBERG-B 1.2 %

The market today

Today will offer news for investors in William Demant and GN Great Nordic as the Italian hearing-aid
dealer Amplifon will release its interim accounts. These accounts will attract additional attention as
the French company Audika reported quite a negative surprise when it revealed lower-than-expected
sales figures for Q2.
Moreover, investors in D/S Norden will see a couple of indicators for the development in the dry-bulk
market when the rivals Diana Shipping and DryShips announce their Q2 accounts today.
It is expected that today the Danish market will open – as it closed yesterday – in positive territory as
the DAX future has increased by 0.55%.

EXPECTATIONS OF THE OPENING OF THE DANISH MARKET*

DAX Index Price DAX Future Price 30-day correlation

0.55%* 6,024.28 6,029.00 83 %

*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 17.03.2010

Sanofi-Aventis (BUY):
Expectations of the quarterly accounts. JB: It has been and will still be an eventful week for SA in respect
of the FDA approval of a generic rival of Lovenox last Friday and the Q2 accounts to be released on
Thursday, 29 July. For Q2, we expect results with sales 2.5% above the level for Q2 2009, while the
profit will be worse than last year. Moreover, the impact of the US health-care reform and the European
price pressure on SA’s profit will attract attention. We maintain our BUY recommendation for SA but
lower the price target to 64 (from 67) due to the lower expected sales and margin for Lovenox.

2
EQUITIES DAILY
Equity Research • 28 July 2010

Lufthansa (BUY):
We maintain our BUY recommendation. JB: Even though the volcanic ash cloud resulted in high
expenses, we expect that due to the traffic figures released lately, Lufthansa will report decent Q2
accounts, considerably above Q1 2010 and the basis of comparison, Q2 2009. We reiterate our BUY
recommendation for Lufthansa and our price target at EUR 15, as we think the worst part is over, and
that in the coming years Lufthansa will see gradually improving market conditions.

Samsung (SELL):
Samsung will release its Q2 2010 accounts early Friday morning. JB: Already in July, Samsung
announced the main figures, and therefore the accounts are not awaited with that much excitement.
Samsung reported sales of KRW 37 trillion and operating earnings of KRW 5 trillion, i.e. in the middle
of Samsung’s forecast range. Growth is primarily fuelled by DRAM/NAND but also sales of TFT-LCD
screens are good. We reiterate our SELL recommendation for Samsung, as we think the consensus
estimates are too high and do not reflect the high risk of excess capacity in respect of LCD and memory
chips. We have previously seen excess capacity on several occasions and such a situation will result in
drastically declining market prices.

3
EQUITIES DAILY
Equity Research • 28 July 2010

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

345 10.200

340 10.100

10.000
335
9.900
330
9.800
325
9.700
320
9.600

315 9.500

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

1110 10.600
1100
10.400
1090
1080 10.200
1070
1060 10.000
1050
9.800
1040
1030 9.600
1020
1010 9.400
1000 9.200

DAX Index (30 days) Olie spot pris (30 days)

5900 82
80
5800
78
5700
76
5600 74
5500 72

5400 70
68
5300
66
5200
64
5100 62

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 William Demant (REDUCE) and GN Great Nordic (REDUCE) to Coloplast (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)

4
EQUITIES DAILY
Equity Research • 28 July 2010

Anticipated corporate news in our equity-research universe

Effect on share
Company Event
price*
US
BOEING CO Q2 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
US
CORNING INC
SYMANTEC CORP
LSI CORP
European
BRITISH AMERICAN TOBACCO
ARCELORMITTAL
BANCO BILBAO VIZCAYA ARGENTA
PEUGEOT SA

Macroeconomic events
Time Event
US
14:30 USD New orders, durable consumer goods
- exclusive of transport
20:00 USD The Fed publishes Beige Book
European
N/A DEM Consumer prices, preliminary
Asian and others
NZD Monetary policy meeting at the Reserve Bank of New Zealand
23:00 NZD Interest-rate announcement from the Reserve Bank of New Zealand
00:45 NZD Trade balance
01:50 NZD Retail sales

Yours faithfully,

JYSKE MARKETS
Jyske Bank
Equities

5
EQUITIES DAILY
Equity Research • 28 July 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.

6
EQUITIES DAILY
Equity Research • 28 July 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.