EQUITIES DAILY

Equity Research • 29 July 2010

Index Value Change (%)

Danish Day Week Month YTD
OMX COPENHAGEN (OMXC20) 413 -0.3 % 1.9 % 5.6 % 22.6 %
US
DOW JONES INDUS. AVG 10498 -0.4 % 3.7 % 6.4 % 0.7 %
NASDAQ COMPOSITE INDEX 2265 -1.0 % 3.5 % 6.1 % -0.2 %
S&P 500 INDEX 1106 -0.7 % 3.4 % 6.2 % -0.8 %
European
FTSE 100 5320 -0.9 % 2.0 % 8.3 % -1.7 %
DOW JONES EUROSTOXX 50 P
2766 -0.1 % 4.8 % 8.2 % -6.7 %
INDEX
DAX INDEX 6179 -0.5 % 3.1 % 3.8 % 3.7 %
OMX (STOCKHOLM) INDEX 1051 -0.8 % 1.0 % 5.7 % 10.4 %
Asian
NIKKEI 225 INDEX 9714 -0.4 % 5.3 % 1.5 % -7.9 %
Other key figures
Publisher: Oil 76.99 -0.7 % 1.0 % -1.6 % -3.0 %
Jyske Markets USD/DKK 5.73 -0.1 % -1.0 % -6.5 % 9.3 %
Equities Source: Bloomberg - 29-07-2010.
Vestergade 8 -16
DK - 8600 Silkeborg
Yesterday’s market
Assisting Analyst:
Sidsel Riisgaard Møller The past week was good for European equities, but yesterday’s trading session brought an
Sidsel.Moeller@
jyskebank.dk end to this. The broad European Dow Jones Eurostoxx 50 index was down by marginally 0.1%,
and OMXC20 followed suit, down by 0.3%. Across the Atlantic, announcements from the Fed
Translation: that the upswing is flagging off and disappointing sales of durable consumer goods were the
Translation Services reason why the US markets also closed in negative territory. Down by 1%, the Nasdaq index
was poorest performer.
Up by 2%, Danske Bank again managed to be at the top of the C20 index. The ”runner-up” in
the index was William Demant. The share rose by 1.3% after the accounts from the Italian
hearing aids distributor Amplifon confirmed that the problems at Audiga (France) were partly
company and country specific. NKT closed 2.3% lower after the French rival and cable producer
Nexans’ H1 accounts disappointed. Especially sales and operations were below expectations,
and this was punished by a fall of more than 8% for the Nexans share.

Read more equity-

research reports on
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Disclaimer:
Please see the last page
EQUITIES DAILY
Equity Research • 29 July 2010
Yesterday’s winners Yesterday’s losers
DANSKE BANK 2.0 % NKT HOLDING -2.3 %
WILLIAM DEMANT 1.3 % VESTAS WIND -2.2 %
JYSKE BANK-R 0.8 % A. P. MØLLER - B -2.0 %
H LUNDBECK A 0.8 % DANISCO AS -2.0 %
NOVO NORDISK 0.4 % A. P. MØLLER - A -1.7 %
FLSMIDTH & C 0.1 % COLOPLAST-B -1.6 %
D/S NORDEN 0 %- TRYG A/S -1.1 %
NORDEA BANK -0.1 % TOPDANMARK A -0.8 %
Novozymes B -0.2 % DSV A/S -0.6 %
SYDBANK -0.4 % CARLSBERG-B -0.4 %

The market today

There is news for investors of Novo Nordisk today since the French rival Sanofi-Aventis (BUY)
turned in its Q2 accounts. See our comment on the accounts below. Apart from Sanofi-Aventis
there are two other companies that will publish their accounts in the early morning: Lufthansa
and Royal Dutch Shell. Read also comments on these accounts below.
There was also news for investors of Vestas today if we look to Germany where the industrial
giant Siemens released its Q3 accounts. In these accounts the focus of attention was on
figures and announcements from the sub-division Renewable Energy which as expected
reported advance.
With respect to economic fundamentals there is news about unemployment. After
unemployment data for May showed a marginal fall in unemployment, it will be interesting to
see whether the unemployment figures for June, which will be published by Statistics
Denmark today, continue the positive trend.

EXPECTATIONS OF THE OPENING OF THE DANISH MARKET*

DAX Index Price DAX Future Price 30-day correlation

0.08%* 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

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Equity Research • 29 July 2010

Market Perspective
The Market Perspective is written by
Jyske Bank’s Equity Strategist, Per
Hansen.
Equity Strategy, Denmark: positive earnings surprises in store in
Denmark. JB: Since the accounts-reporting season started in the
US, the 250 companies which have turned in their accounts have
shown positive EPS surprises. 55% of the companies have
reported an EPS of at least 5% above consensus. Likewise, the
sales level have also been above consensus. 40.2% of the
businesses reported figures which were 2% above the consensus
estimates.

Sanofi-Aventis (BUY):
Publication of quarterly accounts. JB: Sanofi-Aventis released good accounts, as both sales and the
bottom line result turned out to be better than expected. Sales came to EUR 7.8bn against the
expected level of EUR 7.6bn, while the net profit came to EUR 2.48bn against EUR 2.31bn. Particularly
the sales of Lantus (diabetes) came as a positive surprise. Moreover we learned news about a possible
acquisition of the US biotech company Genzym as Sanofi-Aventis now states that it will offer almost
USD 20bn. This figure had been expected.

DSV (ACCUMULATE):
Strong accounts to be expected. JB: We expect that the transport group DSV will release strong Q2
accounts on Friday, 30 July in the morning. 2. Like Q1, Q2 was characterised by a high level of activity
with a marked improvement in volumes transported, particularly by sea and air. Road transport also
developed in a reasonable way in Q2 considering that Europe is not running at quite the same growth
pace as Asia and North America. However, the marked improvement will affect the gross margin in a
negative way as DSV is not able to pass on the rising rates to the customers at the pace they are
imposed on DSV by its suppliers. Not until later on will the customers see increases in rates, and
therefore earnings will be delayed. Both our estimates and consensus point to results above DSV’s
forecast. Therefore, an upward revision is on the cards, yet we tend to think that DSV will wait until its
Q3 accounts, where the company has a much better idea of the development for the year.

Lufthansa (BUY):
Immediate comment on the accounts. JB: Also Lufthansa was able to report excellent accounts. Sales
came to EUR 6.9bn against the expected level of EUR 6.2bn, while the operating profit came to EUR
159m against the expected EUR 131m. The development in Cargo and overseas passengers was
particularly positive.

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Equity Research • 29 July 2010

Royal Dutch Shell (BUY):

Surprisingly good results. JB: Royal Dutch Shell released excellent Q2 accounts. The adjusted net profit
came to USD 4,529m (JB estimate: USD 3,890m; consensus: USD 4,076m); hence compared to our
estimate and consensus, the profit came as a considerable surprise. This equals an increase of 95% (JB
estimate: +66 %) compared to the same quarter last year. In Q2, the positive development for the
company was fuelled by a generally positive price trend. Also, the cost-cutting and savings plan has
resulted in total savings of USD 3.5bn, and hence Shell officially completed its ‘Transition 2009’
programme six months earlier than aimed for and with savings 15% higher than the target. The
company pays dividend of USD 0.42 per share. The share price ought to increase following the release
of the accounts. We maintain our BUY recommendation and our price target of USD 26.

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Equity Research • 29 July 2010

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

420 10.800
415
10.600
410
405 10.400

400 10.200
395
10.000
390
385 9.800
380
9.600
375
370 9.400

365 9.200

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

1140,0
9.900
1120,0
9.800
1100,0
9.700
1080,0 9.600
1060,0 9.500

1040,0 9.400
9.300
1020,0
9.200
1000,0
9.100
980,0 9.000
960,0 8.900
8.800

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

6300,0 80

6200,0 78

6100,0
76
6000,0
74
5900,0
72
5800,0

5700,0 70

5600,0 68

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)

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Equity Research • 29 July 2010

Anticipated corporate news in our equity-research universe

Effect on share
Company Event
price*
US
Royal Dutch Shell Q2 accounts
European
Sanofi-Aventis Q2 accounts
Lufthansa 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
EXXON MOBIL CORP
MOTOROLA INC
ASTRAZENECA PLC
GENPACT LTD
European
VOLKSWAGEN AG
PROSEGUR COMP SEGURIDAD-REGD
BASF SE
BANCO SANTANDER SA
BAYER AG
MERCK KGAA
AMGEN INC
COMPAGNIE DE SAINT-GOBAIN
TELEFONICA SA
REPSOL YPF SA
GAMESA CORP TECNOLOGICA SA
ENEL SPA
BT GROUP PLC
CAP GEMINI
STATOILHYDRO ASA
FRANCE TELECOM SA
SIEMENS AG-REG

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EQUITIES DAILY
Equity Research • 29 July 2010

Macroeconomic events
Time Event
Danish
09:30 DKK Unemployment
US
14:30 USD Jobless claims
Jobless claims, total
European
N/A ESP Building permits
08:45 FRF Producer prices
09:00 ESP Consumer prices, preliminary
09:15 SEK Consumer confidence
Industrial confidence
ITL Industrial confidence
SEK Retail sales
09:55 DEM Unemployment, change in figures
Unemployment
10:30 GBP Loans to private individuals
11:00 EUR Business confidence
Industrial confidence
Consumer confidence, final
11:15 BEF Consumer prices
01:01 GBP GFK consumer confidence

Asian and others

01:15 JPY PMI, manufacturing – Nomura
01:30 JPY Tokyo consumer prices
- ex. food
- exclusive of food and energy
Consumer prices
- ex. food
- exclusive of food and energy
Household consumption
Unemployment
Jobs per applicant
01:50 JPY Industrial production, preliminary
07:00 JPY Housing starts and building permits

Yours faithfully,

JYSKE MARKETS
Jyske Bank
Equities

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Equity Research • 29 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.

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Equity Research • 29 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.