In case of discrepancies between the Danish version and the English version of the Annual Report the Danish version is valid.

Annual report 2013

Table of contents Company information... 4 Company... 4 Board of Directors... 4 General meeting... 4 Dear shareholder... 5 Financial highlights... 6 Management's statement... 7 Auditors' reports... 8 Internal auditors' reports... 8 Independent auditors' reports... 9 Business concept and targets... 12 Vision, mission and value... 12 Summary... 13 Group management's review... 14 Group chart... 14 Principal activities... 14 Income statement... 14 Uncertainty of recognition and measurement... 20 Unusual circumstances... 21 Special risks... 23 Credit risk... 23 Market risk... 23 Business risk... 24 Liquidity risk... 24 Operational risk... 25 Knowledge resources... 25 Events after the end of the financial year... 26 Statutory CSR report... 27 Statutory report on diversity in management... 29 Statutory corporate governance report... 30 Recommendations on Corporate Governance... 30 Risk management... 32 Whistleblower scheme... 33 Composition and function of the Board of Directors... 33 Work of the Board of Directors... 34 Committees appointed by the Board of Directors... 34 Information on board members... 35 Board of Executives... 38 Members of the Board of Executives... 38 Shareholder information... 39 Share information... 39 Investor relations... 40 General meeting... 40 Rules regarding amendments to the Articles of Association... 40 Board of Directors' powers regarding capital increases and trading in treasury shares... 41 Dividend policy... 41 Remuneration for the management... 41 Important agreements with the management... 42 Important agreements that will be amended or lapse if control of the bank changes... 42 Company announcements and Financial calendar... 43 Company announcements... 43 Financial calendar... 43 Accounts & Notes... 45 Accounts... 45 Notes... 45 Danske Andelskassers Bank s organisation local experts and central specialists... 103 What do baby swimming and an old windmill have in common?... 106 Shareholders committees are a valuable link to the local community... 108 Information, inspiration and a bite to eat... 110 Denmark at risk of being divided... 112 In case of discrepancies between the Danish version and the English version of the Annual Report the Danish version is valid. The picture on the front page and the rest of the Annual Report Cooperation is a founding principle of Danske Andelskassers Bank and the key to increasing the customers opportunities. This is illustrated in the photographs, shot by photographer Peer Klercke in cooperation with customers and employees of the bank. 2013 Annual Report Danske Andelskassers Bank A/S 3

Company information Company Danske Andelskassers Bank A/S Baneskellet 1 8830 Tjele, Denmark CVR no.: 31843219 Domicile: Municipality of Viborg, Denmark Telephone: +45 87 99 30 00 Fax: +45 87 99 31 97 Website: www.andelskassen.dk Email: webteam@andelskassen.dk The bank was founded in 1969 and admitted to trading on NASDAQ OMX Copenhagen in 2011. Board of Directors Jakob Fastrup, lawyer, Chairman Jens Jørgensen Hald, farmer and consultant, Deputy Chairman Preben Arndal, state-authorised public accountant Kenneth Hyldig Clausen, farmer Helle Okholm, CFO Jens Holt Ladefoged, CEO Jens Nørvang Madsen, retired deputy assistant commissioner of police Hans Jørn Madsen, CEO Asger Pedersen, farmer Poul Weber, former county mayor and fruit grower Anette Holstein Nielsen, Group Manager (employee representative) Palle Iversen, Customer Adviser (employee representative) Lona Linding, Branch Director (employee representative) Board of Executives Jan Pedersen, CEO Tomas Michael Jensen, Deputy CEO Auditors Deloitte Statsautoriseret Revisionspartnerselskab General meeting The annual general meeting will be held on 28 April 2014 at 5 pm at the bank's premises. 4 Danske Andelskassers Bank A/S 2013 Annual Report

Dear shareholder In terms of results, 2013 did not turn out as we had hoped for or expected. This was caused by three factors which can basically be summarised as follows: 1. We operate in parts of Denmark which are facing challenges and experiencing low growth. 2. The rules on, for example, disposable income and impairment are the same regardless of where you live in Denmark. And 3. we have not always been successful enough in the areas in which we are domiciled, given the applicable rules. We do not doubt that we wish to and must service customers outside the major cities of Denmark. However, this makes certain demands on us, which have been intensified during the financial crisis. The bank has undergone considerable changes during the past few years and we are on the right track, but we have not reached the target yet. Not only results were not as hoped for and expected in 2013. We worked hard to do so in 2013, which, fortunately, was also characterised by many positive elements such as an excellent collaboration with customers, shareholders' committees and business partners etc. In 2014, we will, of course, continue to correct any errors and strive to provide even more positive experiences for our shareholders, customers, business partners, employees and all other stakeholders with an interest in and relation to the bank. We will continue the development strategy followed in recent years without forgetting our roots. The first step is the implementation of our capital recovery plan, which is naturally one of our main focus areas. Together we can do more. On behalf of the Board of Executives Jan Pedersen CEO Errors in connection with the share issue in 2011, errors in the documentation of loan agreements and suspected errors in connection with the bank's role as a market maker for the bank's treasury shares in H2 2011 also contributed to confuse the issue. As for the latter, charges were brought against the bank which we have contested as we do not believe there to be any grounds for the charges. It has sometimes been a challenge how best to respond to the accusations. It has been a challenge for our employees who have been faced with questions and comments, both at work and in their spare time. In addition, it has been a a challenge in relation to our customers, shareholders and business partners as we know that not everyone will receive the correct information and that untrue stories and rumours will also arouse suspicion. We have taken every opportunity to emphasise that the most important thing for us is to correct any errors that may have been committed. 2013 Annual Report Danske Andelskassers Bank A/S 5

Financial highlights Income statement (Group) DKK '000 2013 2012 2011 2010 2009 Interest income 626,440 745,200 766,212 789,612 922,133 Interest expenses 168,994 216,446 236,835 223,750 312,734 Net interest income 457,446 528,754 529,377 565,862 609,399 Share dividend etc. 11,894 6,035 4,338 1,280 16,755 Net fee and commission income 209,292 215,559 209,411 231,049 208,356 Net interest and fee income 678,632 750,348 743,126 798,191 834,510 Market value adjustments 5,781 11,155-51,181 45,592 34,817 Other operating income 4,249 10,898 13,406 8,191 8,251 Staff costs and administrative expenses 491,561 515,655 505,381 570,329 587,166 Depreciation and impairment of tangible assets 8,406 11,827 18,685 18,337 14,963 Other operating expenses 44,802 40,360 50,830 101,216 83,750 Impairment of loans and receivables etc. 524,324 342,154 377,616 414,266 480,750 Profit/loss from equity investments in associates 0-45,323 6,708 11,364 10,584 Profit/loss before tax -380,431-182,918-240,453-240,810-278,467 Tax 1,848-11,721 162,330-57,040-79,114 Net profit/loss for the year -382,279-171,197-403,718-183,770-199,353 Balance sheet (Group) DKK '000 2013 2012 2011 2010 2009 Receivables from credit institutions etc. 323,674 379,314 946,641 1,325,115 1,871,981 Loans 6,714,692 7,537,283 8,914,017 9,562,394 10,283,414 Bonds and shares 3,000,691 4,209,628 3,227,116 3,316,643 3,719,496 Payables to credit institutions 590,704 1,153,975 702,060 1,484,525 2,467,158 Deposits 8,875,838 9,324,035 9,013,842 9,930,589 11,630,765 Bonds issued 14,410 1,016,920 2,016,294 1,015,860 17,003 Subordinated debt 644,282 749,499 705,246 703,077 683,459 Equity 839,537 1,221,831 1,413,814 1,426,759 1,612,868 Total assets 11,322,386 13,883,234 14,236,168 15,180,556 16,759,700 Guarantees 1,372,852 1,568,260 1,751,417 2,372,568 3,512,821 Solvency ratio 11.2% 15.1% 14.2% 12.0% 11.5% Number of employees 494 517 547 623 649 Ratios (Group) 2013 2012 2011 2010 2009 Solvency ratio 11.2% 15.1% 14.2% 12.0% 11.5% Core capital ratio 11.2% 14.9% 14.0% 11.8% 11.6% Return on equity before tax -37.0% -13.9% -17.1% -15.8% -16.2% Return on equity after tax -37.1% -13.0% -28.7% -12.1% -11.6% Earnings per DKK of cost 0.64 0.81 0.75 0.78 0.76 Interest rate risk 3.6% 2.6% 1.6% 2.7% 3.1% Currency position 3.5% 4.4% 2.1% 3.9% 4.6% Currency risk 0.1% 0.0% 0.1% 0.0% 0.1% Loans relative to deposits 92.1% 93.4% 111.1% 106.5% 95.3% Loans relative to equity 8.0 6.2 5.5 6.7 6.3 Growth in loans for the year -11.1% -15.4% -6.7% -7.0% -7.4% Surplus cover relative to statutory liquidity requirement 169.2% 251.0% 159.0% 141.3% 176.4% Sum of large commitments 46.4% 29.1% 18.3% 28.5% 16.5% Impairment percentage for the year 5.7% 3.3% 3.2% 3.8% 3.3% Financial highlights are derived from audited historical accounting information for 2009 and 2010 for the SDA group presented in accordance with IFRS as adopted by the EU for use in the prospectus of 7 June 2011 and the present financial statements of Danske Andelskassers Bank A/S. 6 Danske Andelskassers Bank A/S 2013 Annual Report

Management's statement The Board of Directors and the Board of Executives have on this day considered and adopted the annual report for the financial year 1 January 31 December 2013 of Danske Andelskassers Bank A/S. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for the annual reports of listed financial companies. The financial statements of the parent have been presented in accordance with the Danish Financial Business Act (lov om finansiel virksomhed). In our opinion, the consolidated financial statements and the financial statements give a true and fair view of the group's and the parent's assets, liabilities and financial position as at 31 December 2013 and of the results of the group's and the parent's operations as well as the consolidated cash flows for the financial year 1 January 31 December 2013. In our opinion, the management's review gives a fair review of the development in the group's and the parent's activities and financial affairs, the results for the year and the general financial position of the companies comprised by the consolidated financial statements as well as a description of the most important risks and uncertainty factors to which the group and the parent are exposed. One should be especially aware of note 2 "Capital recovery plan and significant accounting estimates and assessments" in which conditions related to e.g. the banks capital recovery plan and solvency are described. The annual report is submitted for adoption by the general meeting. Hammershøj, 25 February 2014 Board of Executives Jan Pedersen CEO Tomas Michael Jensen Deputy CEO Hammershøj, 25 February 2014 The Board of Directors Jakob Fastrup Jens J. Hald Preben Arndal Chairman Deputy Chairman Member with audit expertise Chairman of audit committee Kenneth Clausen Palle Bo Iversen Lona Elisabeth Linding Anette Holstein Nielsen Jens H. Ladefoged Jens Nørvang Madsen Hans Jørn Madsen Helle Okholm Asger Pedersen Poul Weber Branchekyndigt medlem 2013 Annual Report Danske Andelskassers Bank A/S 7

Auditors' reports Internal auditors' reports Auditors' report on the consolidated financial statements and financial statements We have audited the consolidated financial statements and the financial statements of Danske Andelskassers Bank A/S for the financial year 1 January 31 December 2013. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for the annual reports of listed financial undertakings. The financial statements are presented in accordance with the Danish Financial Business Act. Basis of opinion Our audit has been performed on the basis of the Danish Financial Supervisory Authority's Executive Order on audits in financial undertakings and financial groups etc, and in accordance with international auditing standards. This requires that we plan and perform our audit to obtain reasonable assurance that the consolidated financial statements and the financial statements are free from material misstatement. Our audit has been performed in accordance with the division of work agreed with the external auditors and has included an assessment of established business procedures and internal controls, including the risk management planned by the management aimed at reporting processes and significant business risks. Based on materiality and risk, we have, on a sample basis, examined the basis of amounts and other disclosures in the consolidated financial statements and the financial statements. An audit also includes evaluating the appropriateness of accounting policies applied by the management and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the consolidated financial statements and the financial statements. We have participated in the audit of material and risky areas, and we believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion. Our audit has not resulted in any qualifications. Opinion In our opinion, the established business procedures and internal controls, including the risk management planned by the management aimed at the group's and the company's reporting processes and significant business risks, are satisfactory. We also believe that the consolidated financial statements and the financial statements give a true and fair view of the group's and the company's assets, liabilities and financial position as at 31 December 2013 and of the results of the group's and the company's operations and cash flows for the financial year 1 January 31 December 2013 in accordance with International Financial Reporting Standards as adopted by the EU and Da nish disclosure requirements of listed financial undertakings as far as the consolidated financial statements are concerned and in accordance with the Danish Financial Business Act as far as the financial statements are concerned. Supplemental information regarding elements in the report Without taking qualifications reference is, hence the Management s statement, made to the report in note 2 Capital recovery plan and significant accounting estimates and assessments. The running of the bank depend on the bank s forward ability to follow the capital recovery plan and thereby recover a sufficient excess solvency. It s the assessment of the management that the capital recovery plan is realistic and the Annual Report is published on a going concern basis. We have no reason to take a different assessment hereof. As a result of diagnosed weaknesses in the bank s credit administration, the bank s management reports that the insecurity related to the measurement of loans and guarantees are larger than usual and that this applies to the timewise factoring in of impairments as well. Finally, the implementation of new capital requirements regulation means that during a transition period there will be increased insecurity related to the calculation of solvency, not least the calculation of risk-weighted items. We concur with the managements description of assumptions, risks and uncertainties. Statement on the management's review We have read the management's review as required by the Danish Financial Business Act. We have not performed any procedures other than the audit performed of the consolidated financial statements and the financial statements. Against this background, we believe that the information in the management's review is consistent with the consolidated financial statements and the financial statements. Hammershøj, 25 February 2014 Carsten S. Graver, Audit Manager 8 Danske Andelskassers Bank A/S 2013 Annual Report

Independent auditors' reports To the shareholders of Danske Andelskassers Bank A/S Auditors' report on the consolidated financial statements and financial statements We have audited the consolidated financial statements and the financial statements of Danske Andelskassers Bank A/S for the financial year 1 January 31 December 2013, comprising the income statement and statement of comprehensive income, balance sheet, statement of changes in equity and notes, including accounting policies for the group and the company and the cash flow statement for the group. The consolidated financial statements have been prepared in accor dance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for the annual reports of listed financial undertakings. The financial statements are presented in accordance with the Danish Financial Business Act. Management's responsibility for the consolidated financial statements and the financial statements The management is responsible for preparing consolidated financial statements which provide a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for the annual reports of listed financial undertakings and for preparing financial statements which provide a true and fair view in accordance with the Danish Financial Business Act. The management is also responsible for the internal control deemed necessary for preparing consolidated financial statements and financial statements that are free from material misstatement whether due to fraud or error. Auditors' responsibility Our responsibility is to express an opinion on the consolidated financial statements and the financial statements based on our audit. We conducted our audit in accordance with international auditing standards and additional requirements set out in Danish auditing legislation. This requires that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the consolidated financial statements and financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements and the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement in the consolidated financial statements and the financial statements, whether due to fraud or error, In making these risk assessments, the auditor considers internal control relevant to the company's preparation and fair presentation of consolidated financial statements and financial statements. The purpose of this is to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies applied by the management and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the consolidated financial statements and the financial statements. In our opinion, the audit evidence obtained provides a reasonable and suitable basis for our opinion. Our audit has not resulted in any qualifications. Opinion In our opinion, the consolidated financial statements give a true and fair view of the group's assets, liabilities and financial position as at 31 December 2013 and of the results of the group's operations and cash flows for the financial year 1 January 31 in accordance with International Financial Reporting Standards as adopted by the EU and Danish disclosure requirements for annual reports of listed financial undertakings. It is also our opinion that the financial statements give a true and fair view of the company's assets, liabilities and financial position as at 31 December 2013 and of the results of the company's operations in the financial year 1 January 31 December 2013 in accordance with the Danish Financial Business Act. Supplemental information regarding elements in the report Without taking qualifications reference is, hence the Management s statement, made to the report in note 2 Capital recovery plan and significant accounting estimates and assessments. The running of the bank depend on the bank s forward ability to follow the capital recovery plan and thereby recover a sufficient excess solvency. It s the assessment of the management that the capital recovery plan is realistic and the Annual Report is published on a going concern basis. We have no reason to take a different assessment hereof. As a result of diagnosed weaknesses in the bank s credit administration, the bank s management reports that the insecurity related to the measurement of loans and guarantees are larger than usual and that this applies to 2013 Annual Report3 Danske Andelskassers Bank A/S 9

the timewise factoring in of impairments as well. Finally, the implementation of new capital requirements regulation means that during a transition period there will be increased insecurity related to the calculation of solvency, not least the calculation of risk-weighted items. We concur with the managements description of assumptions, risks and uncertainties. Statement on the management's review We have read the management's review as required by the Danish Financial Business Act. We have not performed any procedures other than the audit performed of the consolidated financial statements and the financial statements. Against this background, we believe that the information in the management's review is consistent with the consolidated financial statements and the financial statements. Copenhagen, 25 February 2014 Deloitte Statsautoriseret Revisionspartnerselskab Anders O. Gjelstrup State Authorised Public Accountant Hans Trærup State Authorised Public Accountant 10 Danske Andelskassers Bank A/S 2013 Annual Report

Business concept and targets The Danske Andelskassers Bank group (Danske Andelskassers Bank) has its roots in the Danish cooperative movement, having been founded by passionate locals outside the major cities who joined forces to create local area banks. Even today, these roots continue to define the bank, whose vision is to be the preferred local bank in its market areas. In the bank's opinion, this means that Danske Andelskassers Bank must provide accessible, down-to-earth, dedicated, well-informed and competent advice combined with high-quality solutions and products for its customers. Consequently, the bank, among other things, collaborates with different suppliers and specialists within the bank's business areas, enabling the bank to provide competitive solutions and concentrate the bank's own resources on advisory services in particular. Vision, mission and value Danske Andelskassers Bank is part of the areas in which it operates and wants to be accessible and offer value-creating solutions. Vision: We want to be the preferred local bank in our market area. Mission: We create added value for customers, the local area and staff. Our customers experience a positive difference by choosing Danske Andelskassers Bank as their bank. The local area benefits from Danske Andelskassers Bank supporting local initiatives. Our staff pursues professional and personal development, making them an important factor in customers experiencing a positive difference. Values: Collaboration, trust, commitment and stability. Being the preferred local bank also requires a constant commitment to the local area concerned. Many of the bank's customers still live in areas outside the major cities which have been characterised by increasing challenges in recent years caused by low growth, depopulation and low housing prices etc. Danske Andelskassers Bank feels a special responsibility for creating a positive development in these areas by providing banking services, supporting local initiatives and visualising the values and challenges of these areas. Preservation through change However, accessibility, commitment and professionalism mean that the bank must be very conscious about the decisions it makes. Historically, Danske Andelskassers Bank has had branches in many small urban communities, but in step with the decline in branch visits (due to online banking and mobile solutions, among other things) and the change in movement and trading patterns (e.g. the concentration of shops and other trading activities at fewer locations), the bank has combined branches resulting in 31 private custo mer branches offering full opening hours and six business centres as at 31 December 2013. Gathering employees in larger units enables the bank to offer higher-quality advice and creates greater flexibility in terms of competency development, sparring and meetings, making it possible to focus on other areas and secure long-term operations through the cost savings obtained. Fundamentally, the bank wants to maintain the strengths and values that have been developed over almost 100 years of banking and contribute actively to a positive development in the bank's local areas and customer groups as many of them have been part of the bank for many years. As mentioned above, Danske Andelskassers Bank must be very conscious about the decisions it makes and consider changes in society, the financial sector, legislation etc. which is exactly what the bank has done in recent years; not least since the conversion of the bank in 2011, many initiatives have been implemented with a view to creating a stronger and more consistent bank. This work will continue in future. Collaboration a value and a working method One of Danske Andelskassers Bank's fundamental values is collaboration, and this is an important guide for the bank's day-to-day operations. In addition to collaborating with customers and suppliers, the bank also collaborates with other banks, among 12 Danske Andelskassers Bank A/S 2013 Annual Report

others, partly through partnerships in general and partly through supplier agreements under which Danske Andelskassers Bank provides solutions enabling the banks in question to offer products to their customers which would otherwise not have been possible. Furthermore, Danske Andelskassers Bank monitors the current consolidation in the financial sector and is generally positive about extended collaboration ultimately mergers with other banks sharing Danske Andelskassers Bank's business focus and values. Such collaboration must, however, create the greatest possible value for the bank's shareholders and customers, and based on the bank's solvency situation at the end of 2013, the bank does not expect to enter into any mergers in the short term. Short-term target In the short term, Danske Andelskassers Bank will focus on implementing the capital recovery plan in order to create a solvency basis for the future development of the bank, continue the development strategy followed in recent years and retain the bank's values in respect of its customers. Long-term target In the longer term, Danske Andelskassers Bank wants to be a solid and important player in the Danish financial sector and not least in the local areas in which the bank operates. The bank is thus willing to participate in the consolidation taking place in the financial sector at the moment. The bank sees itself as the continuing party in such The supervisory diamond as of 31 December 2013 220% 190% 160% 130% 100% 70% 40% 10% -20% <125% Sum of large engagements Danish Financial Supervisory Authority Danske Andelskassers Bank 46% <100% Funding ration 65% Growth in loans for the year <20% <25% 6% -11% Exposure towards property >50% Liquidity surplus 169% mergers and is aware that this, as mentioned above, requires a solid financial foundation. Danske Andelskassers Bank's primary focus is to continuously create a positive development for its customers and the local areas in which it operates through accessible, down-to-earth, dedicated, well-informed and competent advice as well as commitment to these local areas. Summary In 2013, Danske Andelskassers Bank recorded a loss before tax of DKK -381m against a loss before tax of DKK -183m in 2012. The net loss for the year was DKK -382m against DKK -171m in 2012. The negative results for 2013 can primarily be attributed to impairment of loans and receivables which came to DKK 524m against DKK 342m in 2012. A significant part of the impairment is attributable to the Danish Financial Supervisory Authority's (FSA) visit in autumn 2013. The results of 2013 are furthermore affected by a decline in core earnings which came to DKK 178m against DKK 231m in 2012 primarily due to a decline in net interest and fee income, which aren t matched by a similar decline in costs though these are reduced in 2013 through the merger of branches and layoffs. As at 30 September 2013, Danske Andelskassers Bank's solvency ratio was 10.1 % which is above the general solvency requirement of 8.0%, but below the bank's individual solvency requirement, as fixed by the Danish FSA, of 12.6%. Consequently, the bank was ordered to prepare and implement a capital recovery plan with a view to restoring a solvency ratio above the individual solvency requirement. The bank has been working on this in the end of 2013 and the beginning of 2014 and the bank's solvency ratio was 11.2 % as at 31 December 2013. The activities in the beginning of 2014 as well as the effects of the implementation of CRD IV means that the solvency ratio as of the date of this Annual Report all things being equal is 11.8 % against an individual solvence requirement of 12.0 %. As at 31 December 2013, Danske Andelskassers Bank had a liquidity surplus cover relative to the statutory requirement of 169 %. 2013 Annual Report3 Danske Andelskassers Bank A/S 13

Group management's review Group chart DAB Invest A/S 100 % Principal activities Danske Andelskassers Bank A/S DAB Invest 2 A/S 100 % The Danske Andelskassers Bank group's ('Danske Andelskassers Bank') principal activity is to engage in banking in Denmark and particularly the areas in Jutland and on Funen where the bank's branches are situated. The principal activity is focused on the parent, while the activities of the subsidiaries the investment company DAB Invest A/S which leases group properties, and DAB Invest 2 which invests in, develops and sells properties acquired by the bank in connection with the settlement of customer exposures represent an insignificant share of the group's overall activities and financial position. The bank supplies solutions for private customers, small and medium-sized business customers and institutional customers which strengthen these customers' financial opportunities and business potential. The solutions include, among other things, loans, savings, investment, pension, self-service facilities, insurance and debt management. Combined with the bank's primary product competent and individual advice these solutions can be tailored to the individual customer. Danske Andelskassers Bank had 31private customer branches offering full opening hours and six business centres as at 31 December 2013. In 2013, the bank combined several branches and cut jobs, in particular due to changed consumption patterns among customers which made it necessary to cut costs and redistribute the bank's resources in order to be able to offer high-quality and competitive solutions. A total of 10 branches have been combined with nearby branches since 1 January 2013. A number of central and specialised functions are gathered in the bank's head office, including in the support centres, which are linked to the branches through regional managements in the bank's six regions. The regional division ensures strong local decision-making power and close collaboration across the organisation. Adjustments were also made at the head office in 2013 with a view to cutting costs and adapting to the changed consumption patterns etc. During the year, several jobs were cut at the head office, including a reduction of the number of support centres from three to two, and a more flat and flexible organisational structure was created. The bank aims to continuously optimise its organisation and products in order to ensure local expertise and decision-making power combined with efficiency and qua lity. This process has been ongoing for several years and will continue in the coming years with a view to gearing the bank's business model and targets for the future. Development in continuing activities and financial affairsd It should be noted that Danish Andelskassers Bank, at the time of presenting this annual report, had a solvency ratio above the general solvency requirement, but below the bank's individual solvency requirement. The bank is in the process of implementing a capital recovery plan which is naturally subject to uncertainty. The plan is expected to have the desired effect, and the financial statements for 2013 have been presented on a going concern basis. Income statement Results In 2013, Danske Andelskassers Bank recorded a loss before tax of DKK -381m against a loss before tax of DKK -183m in 2012. The net loss for the year was DKK -382m against DKK -171m in 2012. The results, which correspond to a return on equity before tax of -37.1 % is considered very unsatisfactory. The negative results for 2013 can primarily be attributed to impairment of loans and receivables as well as a decline in net interest and fee income due to a low demand for loans, among other things. This is discussed in detail below. Distribution of net profit/loss for the year The net loss for 2013 will be covered through equity. 14 Danske Andelskassers Bank A/S 2013 Annual Report

Group management's review Core earnings Danske Andelskassers Bank's core earnings profit/ loss before tax less market value adjustments, impairment and sector solutions etc. were DKK 178m in 2013 against DKK 231m in 2012. This represents a fall of 23 % which should be seen in the context of the fall in the bank's net interest and fee income. Core earnings are within the expected interval of DKK 160-190m for 2013 as announced in the interim report for Q1 2013, which was published on 15 May 2013. In this interim report, the bank revised and specified its outlook for core earnings for 2013 announced in the 2012 annual report, which were expected to be slightly lower than in 2012. Interest and fee income Danske Andelskassers Bank's net interest and fee income amounted to DKK 679m in 2013 against DKK 750m in 2012, down 10 %. Results (DKKm) 2009 2010 2011 2012 2013 0-50 -100-150 -200-250 -300-350 -400 Core earnings (DKKm) This is mainly attributable to a decline in the bank's interest income, amounting to DKK 626m in 2013 against DKK 745m in 2012, which was not set off by a corresponding fall in interest expenses. The fall in interest income should be seen in light of the fact that the bank, as described below, saw a fall in loans in 2013, while the decline in interest expenses can be attributed to, among other things, the early repayment of a bond loan of DKK 1,000m, repurchase of subordinated loan capital of NOK 80m and repayment of a loan with Danmarks Nationalbank of DKK 500m in 2013 as mentioned in company announcement no. 1/2013 of 4 February 2013, company announcement no. 4/2013 of 10 April 2013 and company announcement no. 7/2013 of 14 June 2013, respectively. 250 200 150 100 50 0 2009 2010 2011 2012 2013 While net interest income declined, the bank's fees and commission income were relatively stable at DKK 218m in 2013 compared to DKK 222m in 2012. One of the underlying reasons for this is the continuation of the trend in 2012 with loan transaction fees accounting for a decreasing share of total fees and commission income, while income from payment services, other fees and commissions is increasing. Among other things, the 'Investpleje' agreements attracted considerable interest in 2013, and customers are generally interested in savings and investment, while loans remain at a relatively low level. Interest and fee income (DKKm) 1000 800 600 400 200 0 2009 2010 2011 2012 2013 2013 Annual Report3 Danske Andelskassers Bank A/S 15

Group management's review Costs and depreciation/amortisation Danske Andelskassers Bank's costs and depreciation/ amortisation decreased to DKK 492m in 2013 against DKK 516m in 2012, down 5%. For several years, the bank has focused on adjusting costs to the existing and expected market conditions by cutting jobs, combining branches and streamlining processes and business procedures in order to increase both quality and efficiency. The bank expects a further decline in costs in 2014, among other things due to redundancies already agreed upon, which means that the number of employees all else being equal will be 395 as at 30 June 2014 against 452 at the end of 2013. In that connection it should be noted that Danske Andelskassers Bank s costs was extraordinarily affected by non-recurrent expenditures related to layoffs as these costs are recorded at the time of a dismissal. Impairment of loans etc. In 2013, impairment of loans etc. came to DKK 524m against DKK 342m in 2012. This corresponds to an increase of 53 % and an impairment percentage for loans and guarantees of 6 % in 2013 against 3 % in 2012. A significant part of the impairment is attributable to the Danish Financial Supervisory Authority's (FSA) visit in autumn 2013, which gave rise to further impairment of DKK 230m, particularly as a result of sampling among the bank's private customers and small business customers. Despite emerging positive trends in the Danish economy, many of the bank's market areas are still characterised by low growth, and several of the bank's customers, particularly the agricultural customers, were faced with financial challenges in 2013. Furthermore, as confirmed by the FSA's conclusions, the economic crisis, falling housing prices and continued low growth in the bank's market areas experienced in recent years mean that an increasing number of private customers and small businesses are no longer comprised by the current interpretation of the accounting rules on disposable income or are faced with technical insolvency. In should be noted that several of these customers have always met their financial commitments. The bank has strengthened its competencies in the credit area considerably in recent years with a view to reducing impairment in the long term, while an impairment level above the financial sector average is still expected in the short term. See also the sections 'Recognition and measurement uncertainties', 'Credit risk' and 'Business risk'. Investment portfolio earnings Investment portfolio earnings in Danske Andelskassers Bank amounted to DKK 6m in 2013 against DKK -34m in 2012. As at 31 December 2013, the bank had a bond portfolio with a market value of DKK 2,465m and held so-called sector shares in other companies in the financial sector with a market value of DKK 506m. Furthermore, it held shares in other listed companies with a market value of DKK 28m and had other equity investments with a market value of DKK 2m. Danske Andelskassers Bank generally pursues a prudent portfolio policy, and the majority of the bank's bond Costs and depreciation/amortisation (DKKm) Impairment of loans etc. (DKKm) 800 700 600 500 400 300 200 100 0 Costs Depreciation/amortisation 2009 2010 2011 2012 2013 600 500 400 300 200 100 0 2009 2010 2011 2012 2013 16 Danske Andelskassers Bank A/S 2013 Annual Report

Group management's review portfolio are AAA to A rated Danish mortgage credit bonds, while the shareholding primarily comprises sector shares. The latter is primarily held as a result of partnerships with other companies and thus includes shareholdings in some of these companies. Q4 2013 Viewed in isolation, Danske Andelskassers Bank returned a profit before tax of DKK 16m in Q4 2013 against results before tax of DKK -82m in Q4 2012. Net interest and fee income amounted to DKK 166m in Q4 2013 against DKK 187m in Q4 2012, down 12%. Net interest and fee income for Q4 2013 was generally on a par with the average for 2013 and should be seen in the context of the general development in loans and investment activities in 2013. Highlights for Q1-Q4 2013 (DKKm) Q1 Q2 Q3 Q4 Net interest and fees income 177 173 162 166 Staff costs and adminstrative expenses 128 124 115 123 Impairments 43 115 358 8 Pre-tax profit -10-71 -315 16 Core earnings 48 49 43 37 Loans and deposits fell by DKK 207m and DKK 186m, respectively, in Q4. In addition to the generally low demand for loans, the bank saw a net decrease in the number of customers in Q4, particularly in areas where the bank has carried out branch mergers, as well as uncertainty among some customers due to the bank's solvency situation. Balance sheet Danske Andelskassers Bank's balance sheet total was DKK 11,322m as at 31 December 2013 against DKK 13,883m as at 31 December 2012, down 18%. The decrease in the balance sheet total is, among other things, attributable to the repayment of a bond loan of DKK 1,000m and a loan with Danmarks Nationalbank of DKK 500m as well as a declining level of loans and deposits during the period. Loans Danske Andelskassers Bank's loans and receivables amounted to DKK 6,715m as at 31 December 2013 against DKK 7,537m as at 31 December 2012, down 11 %. The level of loans has fallen in recent years due to an unwillingness to raise loans among the bank's customers and in the bank's market areas combined with the overall economic uncertainty in society that causes customers to focus more on savings and the repayment of loans etc. The bank believes that the Danish economy is seeing increasing growth, however, at a slower pace in the bank's primary markets areas outside the major cities. As at 31 December 2013, Danske Andelskassers Bank's loans were made up of loans to private customers of 39 % and loans to business customers primarily small and medium-sized enterprises of 61 %. This distribution remained unchanged throughout 2013. The single largest sector was the agricultural sector which accounted for 21 % of Danske Andelskassers Bank's loans as at 31 December 2013, corresponding to a small increase relative to 31 December 2012. The general decline in loans was thus not reflected in the agricultural sector. Investment portfolio earnings (DKKm) Balance sheet (DKKm) 60 50 40 30 20 10 0-10 -20-30 -40-50 2009 2010 2011 2012 2013 20,000 15,000 10,000 5,000 0 2009 2010 2011 2012 2013 2013 Annual Report3 Danske Andelskassers Bank A/S 17

Group management's review Loans and deposits (DKKm) 12,000 8,000 4,000 0 Equity (DKKm) 2,500 2,000 1,500 1,000 500 0 Loans 2009 2010 2011 2012 2013 Equity Deposits Subordinated debt 2009 2010 2011 2012 2013 For further information about the bank's loan portfolio, please refer to Danske Andelskassers Bank's loan report (available in Danish only) on the bank's website: http://www.andelskassen.dk/da-dk/om/risikorapport%20og%20redegoerelse/udlaansredegoerelse Reference is also made to the description of special risks in this annual report. Deposits Danske Andelskassers Bank's deposits amounted to DKK 8,876m as at 31 December 2013 against DKK 9,324m as at 31 December 2012, down 5 %. The fall in deposits is, among other things, caused by a decrease in the number of customers following branch mergers as well as a growing interest in investments in 2013, meaning that many customers have transferred funds from traditional accounts to investments. Guarantees Danske Andelskassers Bank's guarantees totalled DKK 1,373m as at 31 December 2013 against DKK 1,568m as at 31 December 2012, down 12 %. The development in guarantees should be seen in light of the development in loans, including the still stagnant housing market in the bank's primary market areas. Liquidity As at 31 December 2013, Danske Andelskassers Bank had a liquidity surplus cover relative to the statutory requirement of 169 % against 251 % as at 31 December 2012. This is considered a sound surplus cover, also seen in relation to the 50% requirement included in the FSA's Spervisory Damond. The most important reason for the bank's satisfactory liquidity situation is a deposit surplus reflecting a loandeposit ratio of 92 % as at 31 December 2013. Consequently, the bank did not have any liquidity in the form of bond issues etc. as at 31 December 2013 as the bank in 2013 made an early repayment of a bond loan of DKK 1,000m issued with a government guarantee on 27 December 2010 under the Danish Financial Stability (Amendment) Act no. 68 of 3 February 2009 (Lov om ændring af lov om finansiel stabilitet) as well as an early repayment of a three-year loan of DKK 500m taken out with Danmarks Nationalbank as part of its LTRO on 28 September 2012. When assessing the bank's liquidity situation, it is considered positive that 96 % of the bank's deposits were covered by the Guarantee Fund for Depositors and Investors as at 31 December 2013. Equity and subordinated debt As at 31 December 2013, Danske Andelskassers Bank's equity was DKK 840m against DKK 1,222m as at 31 December 2012. This corresponds to a fall of 31 %, and it is noted that the bank in connection with the interim report of 28 August 2013 and this annual report have made corrections to the equity recognised at the beginning of 2013. The corrections are described under 'Unusual circumstances'. Disregarding these corrections, the fall in equity from 31 December 2012 to 31 December 2013 can be entirely ascribed to the negative results for 2013. 18 Danske Andelskassers Bank A/S 2013 Annual Report

Group management's review As at 31 December 2013, Danske Andelskassers Bank had subordinated debt in the form of hybrid tier 1 capital of DKK 400m raised in 2009 in accordance with the Danish Act on Government Capital Injections in Credit Institutions (Lov om statsligt kapitalindskud i kreditinstitutter) (Bank Package II) and falling due on 9 October 2014. As from this date, the hybrid tier 1 capital can be repaid at a price of 105 until 9 October 2015, and subsequently, at a price of 110. In addition, the bank had subordinated debt of NOK 240m as at 31 December 2013, which was reduced by DKK 80m during the year following the bank's own repurchase. According to the reduction rules on recognition of supplementary capital in the capital base, only 25% of the subordinated debt was recognised. The subordinated debt fell due and was repaid on 7 February 2014 and is thus not included in the calculation of solvency as at 31 March 2014. This impacts solvency by approx. 0.6 percentage points, and the solvency requirement laid down by the FSA will be reduced accordingly on 31 March 2014. Share capital As at 31 December 2013, Danske Andelskassers Bank's share capital was a nominal DKK 550.6m, made up of 55.06m shares with a nominal value of DKK 10. This is unchanged relative to 31 December 2012. For further information about Danske Andelskassers Bank's shares, please refer to 'Shareholder information'. Solvency As at 1 January 2013, Danish banks are required by law to apply the 8+ model for calculating their solvency requirement, and Danske Andelskassers Bank thus applied this model as a basis for its calculations in 2013. As Danske Andelskassers Bank's solvency ratio as at 30 September 2013 was below the individual solvency requirement, the FSA laid down an individual solvency requirement of 12.6% on 29 November 2013 in accordance with Section 124(5) of the Danish Financial Business Act (Lov om finansiel virksomhed), which with the above mentioned reduction on 31 March 2014 - applies until it is met and therefore also applied on 31 December 2014. This means that Danske Andelskassers Bank's individual solvency requirement was 12.6% as at 31 December 2013 against 11.7 % as at 31 December 2012. The bank's solvency ratio was 11.2 % as at 31 December 2013 against 15.1 % as at 31 December 2012. On this background, Danske Andelskassers Bank's solvency deficit relative to the individual solvency requirement was calculated at 1.4 percentage points as at 31 December 2013, while the surplus cover relative to the general solvency requirement of 8% was calculated at 3.2 percentage points. As described under 'Unusual circumstances', Danske Andelskassers Bank is currently implementing a capital recovery plan which, combined with the positive results for Q4 2013, means that the bank has increased its solvency ratio by 1.1 percentage points since the publication of the interim report for Q1-Q3 2013 and has thus reduced the deficit relative to the individual solvency requirement accordingly. When the next calculation is to be carried out on 31 March 2014, the solvency ratio will have increased even further as a consequence of the events described under 'Unusual circumstances' and 'Events after the end of the financial year' and the fact that the bank increased its ownership interest in Sparinvest Holdings SE to 10.04% at the end of December 2013 as part of a capital reduction in the company. When the ownership interest is above 10% ('significant holdings') against the previous holding of 9.75%, the holding is subject to the rules on threshold deductions from common equity tier 1 items under CRD IV. The deduction is thus reduced by DKK 55m, corresponding to a solvency increase of 0.6 percentage points. All else being equal, Danske Andelskassers Bank's solvency ratio will have increased by an additional 0.6 percentage points as at 31 March 2013 corresponding to a solvency deficit relative to the individual solvency requirement of 0.2 % - and the work to restore solvency to a satisfactory level will, of course, continue. Solvenct and solvency requirement 16% 14% 12% 10% 8% 6% 4% 2% 0% Solvency Solvency requirement 2009 2010 2011 2012 2013 2013 Annual Report3 Danske Andelskassers Bank A/S 19

Group management's review Danske Andelskassers Bank's tier 1 capital ratio was 11.2 % as at 31 December 2013. This means that the bank has a high share of common equity tier 1 capital (CET 1), which is important in light of the implementation of CRD IV and CRR as described in further detail below. See also the 'Capital recovery plan' section under 'Unusual circumstances' as well as Danske Andelskassers Bank's risk report, which is available at the banks webpage. Implementation of CRD IV and CRR The implementation of the Basel III rules via the capital requirements directive (CRD IV) and the capital requirements regulation (CRR) began on 1 January 2014. The implementation will take place continuously until 2019, and it is noted that at the time of presenting this annual report, a number of interpretations are not yet available, for which reason the interpretation of the rules implemented as of 1 January 2014 and the rules to be implemented in the coming years are subject to some uncertainty. The uncertainty is also related to the development of the supporting IT systems with the bank s data supplier. The rules impose a number of stricter requirements in terms of what can be included in the capital as well as the size of a bank's capital. This includes requirements as to what can be included as common equity tier 1 capital (CET 1), hybrid tier 1 capital (A-Tier 1) and supplementary capital (Tier 2). Among other things, this means that hybrid tier 1 capital cannot be included in solvency after 31 December 2017 under Bank Package II and that supplementary capital will be reduced during the last five years before maturity as opposed to the last four years today. Banks are and will be required to have a solvency of at least 8% of the risk-weighted assets, but the requirements for common equity tier 1 capital will be increased from the existing 2% to 4.5% as from 2015. To this should be added the so-called capital buffers which are to strengthen banks' resistance to losses, e.g. a capital conservation buffer which will increase the share of common equity tier 1 capital further, and a counter-cyclical capital buffer which is to have a limiting effect in periods of economic upturn. The rules also include certain changes to the way risk-weighted assets are calculated. Based on the existing interpretation of the new solvency rules of CRD IV, Danske Andelskassers Bank has calculated the effect of the transition, had it been carried out on 31 December 2013, and it is estimated that the effect is basically neutral. The solvency will thus be roughly unchanged. The implementation of CRD IV and CRR is, of course, included in the bank's work on the capital recovery plan. Uncertainty of recognition and measurement The FSA visited Danske Andelskassers Bank in August and September and found that, in addition to the impairment already made by the bank, further impairment of DKK 230m was required, particularly as a result of samp ling among the bank's private customers and small business customers. Despite a considerable strengthening of the credit organisation in recent years and the FSA's review of the bank's exposures, the conclusions of the FSA show that the bank's assessment of the need for impairment is subject to uncertainty; see also the description of credit risk below. The bank s formulated procedures and internal controls in the credit area has thus not been sufficient to secure uniform and correct procedures in relation to the handling of the banks customers when it comes to estimating and establishing the need for impairments according to the announced praxis of the Danish FSA regarding individual impairments and depreciations of guarantees. It is the assessment of Danske Andelskassers Bank s management that the impairments of 2013 are related to conditions or worsened conditions for customers that can be ascribed to 2013. Nonetheless, the identified weaknesses in the credit management implie uncertainty regarding the timewise factoring in of the impairments and there by the balance sheet in the beginning of 2013 as well as the results of 2013. Moreover, the new solvency rules of CRD IV, which apply from 1 January 2014 and thus will be applicable at the time of presenting Danske Andelskassers Bank's interim report for Q1 2014 are subject to uncertainty. In line with other companies in the Danish financial sector, Danske Andelskassers Bank continues to analyse the effect of these rules, and the implementation, interpretation and effect of the rules are thus subject to uncertainty. Please refer to the 'Solvency' section for a more detailed description. Danske Andelskassers Bank is regularly a part of trials. At the end of 2013 there were no pending trials whose 20 Danske Andelskassers Bank A/S 2013 Annual Report