Sydbank — Capital/Financing Update 2018

Mar 21, 2018

Revaluation of the value of Sydbank’s ownership interest in BI Holding A/S - Upgraded outlook for 2018

Revaluation of the value of Sydbank’s ownership interest in BI Holding A/S - Upgraded outlook for 2018

Nasdaq Copenhagen A/S London Stock Exchange Bourse de Luxembourg Other stakeholders   Company Announcement No 14/2018	Peberlyk 4 6200 Aabenraa, Denmark   Tel +45 74 37 37 37 Fax +45 74 37 35 36   Sydbank A/S CVR No DK 12626509, Aabenraa sydbank.dk
21 March 2018

Dear Sirs

Revaluation of the value of Sydbank’s ownership interest in

BI Holding A/S

Today the Board of Directors of BI Holding A/S – the Company – has resolved to introduce a new valuation model. As a result the value of the shares in the Company is revalued.

The existing valuation has been identical to the book value of the Company’s equity.

The Board of Directors of the Company has adopted a model according to which the valuation of the adequate total capital of DKK 200m is increased by multiplying with a factor of 3.5. This factor is determined on the basis of a model which distinguishes between the business volume from owners and the business volume from non-owners as well as on the basis of an assessment of the required rate of return and future growth.

Given this factor the value of the adequate total capital will represent DKK 700m, generating a fair market value of DKK 810m including reserves after proposed dividend.

As a result of the above the value of Sydbank’s ownership interest is revalued by DKK 41m in Q1 2018.

Upgraded outlook for 2018

As a consequence of the revaluation the Bank’s expectations regarding profit after tax for 2018 are adjusted upwards to be in the DKK 1,340-1,540m range.

Yours sincerely

Karen Frøsig                                    Bjarne Larsen

CEO                                                 Deputy Group Chief Executive

FM 14 UK