EQUITIES DAILY

Equity Research • 23 July 2010

Index Value Change (%)

Danish Day Week Month YTD
OMX COPENHAGEN (OMXC20) 410 1.2 % -1.3 % -1 % 21.7 %
US
DOW JONES INDUS. AVG 10322 2% -0.4 % 0.2 % -1 %
NASDAQ COMPOSITE INDEX 2246 2.7 % -0.1 % -0.4 % -1 %
S&P 500 INDEX 1094 2.3 % -0.3 % 0.1 % -1.9 %
European
FTSE 100 5314 1.9 % 2% 2.6 % -1.8 %
DOW JONES EUROSTOXX 50 P
2714 2.8 % 0.4 % 0.3 % -8.5 %
INDEX
DAX INDEX 6142 2.5 % -0.1 % -1 % 3.1 %
OMX (STOCKHOLM) INDEX 1065 2.4 % 0.9 % 1.7 % 11.9 %
Asian
NIKKEI 225 INDEX 9441 2.4 % -2.5 % -4.9 % -10.5 %
Other key figures
Publisher: Oil 79.03 3.6 % 3% 2.4 % -0.4 %
Jyske Markets USD/DKK 5.78 0 %- 0.2 % -5.1 % 10.2 %
Equities Source: Bloomberg - 23-07-2010.
Vestergade 8 -16
DK - 8600 Silkeborg
Yesterday’s market
Assisting Analyst: On Thursday, Vestas headed the OMX C20 index, as expected, after the giant order of 570 MW from
Niels Lykke Sørensen Alta Wind (US) had been finally confirmed. Vestas closed the day up by 3.8%, and with only two
+ 45 89 89 70 39 companies in negative territory, the C20 index showed a fair increase of 1.2%.
Niels.Lykke.Soerensen@
jyskebank.dk
Also banks had a good day. Swedbank (Sweden) turned in surprisingly excellent accounts, and this
Translation: positive sentiment spilled over into the rest of the sector. Jyske Bank and Nordea were up by 2.2% and
Translation Services were followed by Danske Bank which was up by 2.0%.

Outside Denmark, the focus of attention was on several favourable accounts. Nokia (Finland) released
its Q2 accounts, showing marginally better-than-anticipated earnings. After the close of the US market
came the giant positive surprise of the day when Microsoft published super accounts for Q4. Read
more on page 3.

The FLSmidth rival Caterpillar and the industrial group 3M also turned in handsome accounts. In
addition, June data for US home sales showed a considerably lower-than-anticipated loss. This
resulted in a good sentiment in the US equity markets, and among the large indices Nasdaq took the
lead with a sharp increase of 2.7% followed by S&P 500, up by 2.3%.
Read more equity-
research reports on
The publication of surprisingly favourable PMI figures for July for several EU countries also had a
www.jyskemarkets.com/
positive effect on the European equity markets. The euro zone reported an increase to 56.5 from 55.6,
Disclaimer: indicating even higher growth in economic activity in Europe. The broad Dow Jones EuroStoxx 50 index
Please see the last page rose by 2.8%, and also the leading German DAX index had an excellent day and was up by 2.5%.
EQUITIES DAILY
Equity Research • 23 July 2010

Yesterday’s winners Yesterday’s losers

VESTAS WIND 3.8 % WILLIAM DEMANT -3.3 %
D/S NORDEN 3.5 % COLOPLAST-B -0.7 %
DANISCO AS 2.6 % NOVO NORDISK 0 %-
FLSMIDTH & C 2.6 % SYDBANK 0.9 %
JYSKE BANK-R 2.2 % CARLSBERG-B 0.9 %
NORDEA BANK 2.2 % Novozymes B 1.0 %
DANSKE BANK 2.0 % H LUNDBECK A 1.1 %
TRYG A/S 1.9 % A. P. MØLLER - A 1.3 %
TOPDANMARK A 1.8 % A. P. MØLLER - B 1.3 %
NKT HOLDING 1.7 % DSV A/S 1.6 %

The market today

This morning, Ericsson (Sweden) released disappointing H1 accounts. Read our comments below.

One of the topics of the day is the great stress test of European banks. The results of the test are
expected to be published at 18.00 tonight after the close of the markets.

The important German IFO business confidence indicator will be published this morning at 10.00.
The index is already comparatively high at 101.8 for June, and a marginal fall for July is expected.

EXPECTATIONS OF THE OPENING OF THE DANISH MARKET*

DAX Index Price DAX Future Price 30-day correlation

-0.04%* 6,142.15 6,140.00 89%

*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 22.07.2010

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EQUITIES DAILY
Equity Research • 23 July 2010

Banks (stress test): Today the long-awaited result of the stress test of the European banking sector will
be published. The Committee of European Banking Supervisors (CEBS) has announced that the test
results will be announced today at 6 p.m. JB: Danske Bank, Nordea and Sydbank are all included in the
test, but we do not expect any problems in relation to these banks. Generally, we expect that the
Nordic banks will pass the stress test with flying colours and therefore the release of the result should
only have a positive effect. The general equity market should not react strongly to the results as it
should not come as a surprise that a strong macroeconomic setback would make life difficult for some
banks, for instance in Germany and Spain. Also, it should be pointed out that most likely the test will
only fail banks in an "all-other-things-being-equal" scenario, which means that any government
capital injections or similar measures would be able to save these banks even in the event of a
macroeconomic turmoil.

Ericsson (SELL): This morning, Ericsson released its Q2 2010 accounts. Sales as well as EBIT were
somewhat below consensus, and Networks disappoints whereas Global Services performed in line with
expectations. Part of the explanation of the disappointing figures must, however, as in Q1 be
attributed to components and bottlenecks in the supply chain – exclusive of these, sales would have
been in line with anticipations. Ericsson still reports hesitant telecoms companies which are
consequently reluctant making investments which are at a lower level in all regions except for North
America. A positive aspect in the accounts is the gross margin, which adjusted for restructuring
measures, landed at 39% compared with the estimated 37%. We anticipate that the Ericsson share will
fall back since Ericsson’s accounts were again slightly weak.

Microsoft (ACCUMULATE): Microsoft released its non-calendar Q4 accounts (April-June). Sales (USD
16bn) and earnings (USD 5.9bn) were marginally better than expected by Jyske Bank and by the market
(USD 15.2bn and USD 5.2bn) although expectations were lifted following good accounts from Intel
(ACCUMULATE). Sales and earnings were boosted by growth in PC sales of 22%-24% combined with
excellent sales of Windows 7 and a successful launch of Office 2010. In addition, increased willingness
to invest on the part of businesses led to an improvement of the product mix. The positive surprises
were reported by the Windows and Business divisions whereas the Online Services and Entertainment
divisions disappointed with respect to sales and earnings. The latter division was, however, adversely
affected by a string of one-off costs in connection with the closedown of the mobile-phone failure Kin.
JB: All in all, good accounts from Microsoft, and we restate our ACCUMULATE recommendation. The
good accounts from Microsoft and Intel bode well prior to the release of Dell’s accounts on 19 August.

Nokia (BUY): Yesterday, Nokia released reasonable Q2 accounts which were marginally above
expectations. Sales were in line with consensus whereas earnings were slightly better. Nokia lost
market share with respect to ordinary telephones but maintained its position in the smartphone
segment. Outlook: In Q3, Nokia anticipates sales between EUR 6.7bn-7.2bn which are at the high end
compared with our estimate of EUR 6.7bn. In addition, the company expects to maintain its market
share in volume terms, but Nokia expects a minor fall in value terms. We maintain our BUY
recommendation.

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EQUITIES DAILY
Equity Research • 23 July 2010

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

420 10.600

410 10.400

10.200
400
10.000
390
9.800
380
9.600

370
9.400

360 9.200

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

1120,0
10.200
1100,0
10.000
1080,0
9.800
1060,0 9.600

1040,0 9.400

1020,0 9.200

1000,0 9.000

980,0 8.800

8.600

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

6400,0 80

6300,0
78
6200,0

6100,0 76

6000,0
74
5900,0

5800,0 72

5700,0
70
5600,0

5500,0 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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EQUITIES DAILY
Equity Research • 23 July 2010

Anticipated corporate news in our equity-research universe

Effect on share
Company Event
price*
European
Ericsson 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
Verizon Communications Inc.
McDonald's Corp.
Sensiet Technologies Corp.

Macroeconomic events
Time Event
US
13:00 CAD Consumer prices
- underlying
European
N/A Result of the stress test of the European banking sector
08:45 FRF Household consumption
10:00 DEM Ifo
Ifo, current index
Ifo, index of expectations
ITL Retail sales
10:30 GBP GDP
15:00 BEF Business confidence

Yours faithfully,

JYSKE MARKETS
Jyske Bank
Equities

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EQUITIES DAILY
Equity Research • 23 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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EQUITIES DAILY
Equity Research • 23 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.