Slide 1: Summarised Consolidated Annual Financial Results 2023
SUMMARISED CONSOLIDATED ANNUAL FINANCIAL RESULTS and ordinary cash dividend declaration for the year ended 31 December 2023
Slide 2: Contents
Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated CONTENTS Commentary comprehensive income financial position changes in equity cash flows financial statements Contents Presentation 1 Commentary 21 Consolidated statement
Slide 3: JSE Limited Annual Results Presentation Agenda
JSE Limited Annual Results Presentation 19 March 2024 let’s connect ©Johannesburg Stock Exchange. The content of this presentation is strictly reserved for the use of the JSE. let’s connect NOTES Agenda Key highlights 03 Financial review 10 Conclusion 23 Appendix 28 2 let’s connect NOTES 1 Summarise
Slide 4: Key highlights
Key highlights 3 let’s connect NOTES Strong results against a challenging backdrop Resilient revenue profile Growth supported by segment & asset class diversification R2.9bn Non-trading income represents 37% of total R2.0bn Operating income Operating OPEX income¹ Cost growth reflects focus on strate
Slide 5: Market performance set against dynamic global and EM factors
Market performance set against dynamic global and EM factors Global Indices FY 2022 and 2023 Performance Equities market - Average Daily Value Traded (bn) / Average Daily Volume Traded (x10 mn) Emerging markets underperform global 25% benchmarks in 2023 15% 50 5% 40 -5 % 30 Earnings ratios at a disc
Slide 6: Trading and post-trade revenue diversified by asset classes
Trading and post-trade revenue diversified by asset classes (Rm) +5.4%¹ 47 1 994 26 15 1 890 19 17 8 18 3 -26 -23 2022 Equity market: Equity Bonds & Commodity Equity market: BDA Funds under JSE Clear Margin income Investor 2023 trading² derivatives financial derivatives clearing management protectio
Slide 7: Progress in 2023 across our strategic pillars
Progress in 2023 across our strategic pillars • JIS1: YoY revenue growth of 20.2%. Revenue and NPAT CAGR (since January 2021) of 23.5% and 71.4% respectively • Data lake: all essential equity and bond data moved to cloud • Launched big xyt ecosystems • Launched JSE Voluntary Carbon Market • Delivere
Slide 8: Key financial highlights – Income Statement
Key financial highlights – Income Statement Operating income (Rbn)¹ Total OPEX (Rbn) EBITDA margin¹ +6.9% +6.7% -4 pts 2,9 2,0 42% 38% 2,8 1,9 2022 2023 2022 2023 2022 2023 Net finance income (Rm)² NPAT (Rm) HEPS (cents) +12.2% +66.4% +11.0% 169 831 1 030 749 918 101 2022 2023 2022 2023 2022 2023 ¹M
Slide 9: Revenue breakdown; Capital Markets & JIS
Revenue breakdown FY 2023 revenue contribution (inner circle represents FY 2022) 34% • Capital markets grew 3% on the back of higher bonds and financial JIS Post-Trade Services 35% derivatives revenue, partly offset by lower equity market trading 7% 6% revenue JSE Clear 4% 4% • JIS and Information S
Slide 10: Post-Trade Services & JSE Clear; Information Services
Post-Trade Services & JSE Clear FY 2023 revenue contribution Clearing & Settlement fees down 6% • Billable equity value traded down 5% Funds under management BDA BDA fees up 5% 37% 10% JSE Clear • Equity transactions up 1%; ADT¹ up to 327k (2022: 322k) 11% Funds under management revenue up 9% Equity
Slide 11: OPEX growth reflects investment in our people and technology
OPEX growth reflects investment in our people and technology Personnel costs up 13% (R91m) to R784m • Annual salary increases • Higher incentives owing to good leavers and retention costs during the year +6.7% as well as a lower LTIS vesting in the prior year Technology costs up 11% (R39m) to R384m
Slide 12: Robust balance sheet and healthy cash generation
Robust balance sheet and healthy cash generation (Rm) 1 100 - 131 - 107 2 560 2 366 - 668 Cash and bonds balance Dec. 2022¹ Generated from operations Investing activities Financing activities Dividend paid Cash and bonds balance Dec. 2023¹ Financing activities Investing activities • Acquisition of t
Slide 13: Dividend in line with stated policy; FY 2024 Expectations
Dividend in line with stated policy Dividend per share (cents) 840 854 725 769 784 150 100 690 725 754 769 784 2019 2020 2021 2022 2023 Ordinary dividend Special dividend 2019 2020 2021 2022 2023 Total dividend R730m R630m R741m R668m R681m Ordinary dividend pay-out ratio 87% 83% 92% 89% 82% Dividen
Slide 14: Conclusion
Conclusion 23 let’s connect NOTES Retaining our strong competitive value proposition Transformative and innovative Responsive and resilient operations Established and credible FMI • Partnerships with world-class • Resilient operational exchange - • Critical Financial Market network providers – Colo
Slide 15: The Group's 2026 strategy positions the JSE as a diversified exchange group
The Group’s 2026 strategy positions the JSE as a diversified exchange group • Evolving client proposition through innovative products and partnerships • Continued diversification of revenue • Progress Information Services Generate growth strategy sustainable high-quality earnings over the Protect Su
Slide 16: Appendix: Committed to stakeholder value creation
Committed to stakeholder value creation 01. 01. Increasing revenue diversification across business segments & asset classes Maintaining our core value proposition through 02. Resilient and stable market Resilient business model underpinned by healthy cash 03. Partnering and innovating to deliver tra
Slide 17: Progressing our Information Services strategy
Progressing our Information Services strategy • Bring foundational projects to practical completion – 50% of investment spend Priorities • Launch a range of revenue-generating data products and • Launched JSE Trade Explorer services • Announced big xyt ecosystems • Explore opportunities for data rev
Slide 18: FY 2019 – 2023 revenue segment data
FY 2019 – 2023 revenue segment data CAPITAL MARKETS Primary Market (Rm) Equity Trading (Rm) Published value traded (Rtr) and effective rate (bps)¹ 0,40 0,40 0,39 0,38 0,39 161 493 489 152 153 158 479 5,8 5,9 5,9 147 5,3 5,1 447 433 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 202
Slide 19: Equity Market: JSE effective pricing trend
Equity Market: JSE effective pricing trend 0,64 0,64 0,68 0,64 0,64 0,4 0,4 0,39 0,39 0,38 0,25 0,27 0,25 0,25 0,22 Trading (bps) Clearing & Settlement (bps) BDA fees (cents per transaction) 2019 2020 2021 2022 2023 2023: Effective rate increased YoY owing to 2023: Effective rate decreased YoY owing
Slide 20: Interest rate developments positively impact Net Finance Income
Interest rate developments positively impact Net Finance Income 180 9,0 (Rm) 7,9 160 8,0 169 140 7,0 6,6 120 6,0 5,1 100 5,0 4,4 140 80 3,5 4,0 60 112 101 3,0 40 2,0 20 59 1,0 0 0,0 2019 2020 2021 2022 2023 Net Finance Income Average rate over period Average repo rates based on monthly weighting 35
Slide 21: Balance sheet; Financial metrics
Balance sheet (Rm) 2023 2020 Non-current assets 2 153 1 992 Property and equipment 174 165 Intangible assets 675 696 Investment in associate 347 329 Other non-current assets 958 801 Current assets 57 637 59 345 Margin deposits 53 999 55 793 JSE Clear Derivatives Default Fund collateral deposits 500
Slide 22: How the JSE art was used throughout the reporting suite
How the JSE art was used throughout the reporting suite Our Integrated Annual Report 2023 showcases selected works from the JSE’s corporate art collection, with the focus on artists involved with the Polly Street Art Centre, a significant feature in the evolution of South African art. The first art
Slide 23: Commentary
Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents COMMENTARY comprehensive income financial position changes in equity cash flows financial statements Commentary JSE Limited (Incorporated in the Republic of Sout
Slide 24: 2023 business highlights
Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents COMMENTARY comprehensive income financial position changes in equity cash flows financial statements o The Group maintains a robust balance sheet and cash of R2.
Slide 25: Financial performance
Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents COMMENTARY comprehensive income financial position changes in equity cash flows financial statements Financial performance Other income o Other net income: -45.4
Slide 26: Regulation; Declaration of ordinary cash dividend; Future focus
Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents COMMENTARY comprehensive income financial position changes in equity cash flows financial statements Regulation Declaration of ordinary cash dividend In complian
Slide 27: Dividend policy; Changes to the Board
Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents COMMENTARY comprehensive income financial position changes in equity cash flows financial statements Share certificates may not be dematerialised or rematerialis
Slide 28: Approval of financial statements; About the JSE
Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents COMMENTARY comprehensive income financial position changes in equity cash flows financial statements Approval of financial statements The consolidated and separa
Slide 29: Condensed consolidated statement of comprehensive income
CONSOLIDATED Contents Commentary STATEMENT OF Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated COMPREHENSIVE financial position changes in equity cash flows financial statements INCOME Condensed consolidated statement of comprehensive income for
Slide 30: Condensed consolidated statement of financial position
CONSOLIDATED Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents Commentary comprehensive income STATEMENT OF changes in equity cash flows financial statements FINANCIAL POSITION Condensed consolidated statement of financial position for t
Slide 31: Equity and liabilities
CONSOLIDATED Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents Commentary comprehensive income STATEMENT OF changes in equity cash flows financial statements FINANCIAL POSITION GROUP 2023 2022 Notes R’000 R’000 Equity and liabilities Tot
Slide 32: Condensed consolidated statement of changes in equity
CONSOLIDATED Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents Commentary comprehensive income financial position STATEMENT OF cash flows financial statements CHANGES IN EQUITY Condensed consolidated statement of changes in equity for th
Slide 33: Stated capital and treasury shares
CONSOLIDATED Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents Commentary comprehensive income financial position STATEMENT OF cash flows financial statements CHANGES IN EQUITY Stated capital Share-based and treasury payments Fair value
Slide 34: Condensed consolidated statement of cash flows
CONSOLIDATED Consolidated statement of Consolidated statement of Consolidated statement of Notes to the consolidated Contents Commentary comprehensive income financial position changes in equity STATEMENT OF financial statements CASH FLOWS Condensed consolidated statement of cash flows for the year
Slide 35: Notes to the consolidated financial statements
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements for the year
Slide 36: Changes in accounting policies continued
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 3. Changes in accounting policies continued 3.1 Change in th
Slide 37: Comparative figures; Use of estimates; Operating segment
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 4. Comparative figures The aforementioned changes have been
Slide 38: Operating segment continued; Financial risk management
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 6. Operating segment continued Other Investments Costs in th
Slide 39: Fair value measurement; Financial assets and liabilities
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 10. Fair value measurement 11. Financial assets and financia
Slide 40: Financial assets and liabilities continued; Basis of consolidation
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 11. Financial assets and financial liabilities continued Fai
Slide 41: Total income
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS GROUP 2023 2022 R’000 R’000 13. Total income 13.1 Revenue fr
Slide 42: Total income continued; Personnel expenses
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS GROUP 2023 2022* R’000 R’000 13. Total income continued 13.2
Slide 43: Other expenses; Income tax expenses
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS GROUP 2023 2022 R’000 R’000 15. Other expenses Amortisation
Slide 44: Earnings and headline earnings per share
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS GROUP 2023 2022 R’000 R’000 17. Earnings and headline earnin
Slide 45: Intangible assets; Employee benefits; Expected credit loss
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 18. Intangible assets Included in the intangible asset of R6
Slide 46: Reserves; Share-based payments
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS GROUP 2023 2022 R’000 R’000 22. Reserves Accumulated dividen
Slide 47: Share-based payments continued
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 23. Share-based payments continued (ii) Allocation #6 under
Slide 48: Leases
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS GROUP 2023 2022 R’000 R’000 24. Leases Impact on the stateme
Slide 49: Fair value estimation
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 25. Fair value estimation 25.1 Fair value hierarchy Financia
Slide 50: Fair value estimation continued
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 25. Fair value estimation continued 25.1 Fair value hierarch
Slide 51: Fair value estimation continued
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 25. Fair value estimation continued 25.2 Reconciliation: Lev
Slide 52: Fair value estimation continued
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 25. Fair value estimation continued 25.2 Reconciliation: Lev
Slide 53: Fair value estimation continued
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 25. Fair value estimation continued 25.2 Reconciliation: Lev
Slide 54: Guarantees, contingent liabilities; Events after reporting date; Audit opinion
NOTES TO THE Consolidated statement of Consolidated statement of Consolidated statement of Consolidated statement of Contents Commentary comprehensive income financial position changes in equity cash flows CONSOLIDATED FINANCIAL STATEMENTS 26. Guarantees, contingent liabilities and commitments 26.1
Slide 55: www.jse.co.za
www.jse.co.za www.jse.co.za