Informative Notice – 20170531 Treatment of Scrip Dividends Informative Notice Treatment of Scrip Dividends and Electable REIT Distributions FTSE/JSE Africa Index Series 30 May 2017 On 15 December 2016 FTSE/JSE published a Market Consultation regarding the treatment of scrip dividends (SC) and electable REIT distributions (RE) in the Index Series. The market consultation proposed a change to the treatment of SCs and REs in the Index Series, since the current FTSE/JSE index treatment depends on the default option and therefore the exact treatment is not always apparent to index investors. Current Treatment: The current treatment prescribes that should cash be the default option, the scrip dividend would be applied as an ordinary cash dividend and the only impact would be to the Total Return index value. However, should the default option be scrip, the event would be applied as a Capitalisation Issue in the Index Series, with a resultant increase in shares and decrease in price. New Treatment: After taking into account feedback from the market consultation, the FTSE/JSE Advisory Committee (AC) decided at the March 2017 meeting that all SCs and REs will be treated as cash dividends in all FTSE/JSE indices, regardless of the default election option attached to the corporate action. The index treatment would be to apply the dividend at the declared cash rate, less any foreign dividend withholding taxes applicable. SCs and REs will therefore only impact the total return index value and not the capital index calculation or constituent weights. This change will be effective for all SCs and REs with immediate effect. For further information or general enquiries please contact us at info@ftse.com or indices@jse.co.za or call: Client Services in UK: Tel: +44 (0) 20 7866 1810 Client Services in EMEA: Tel: +44 (0) 20 7866 1810 Client Services in US: New York: (Domestic) + 1 888 747 FTSE (3873) / (International): +1 212 314 1139 Client Services in Asia Pacific: Hong Kong: + 852 2164 3333 Australia:(Domestic Toll-Free) + 1800 653 680 / (International) + 61 (2) 9293 2864 Japan + 81 (3) 3581 2764 JSE Limited: Tel: +27 11 520 7137 Alternatively please visit our website at www.ftse.com or www.ftsejse.co.za Terms of Use | Copyright © FTSE Date: 30/05/2017 05:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.