JSE LIMITED - Trading statement for the year ending 31 December 2019

Trading statement for the year ending 31 December 2019

JSE Limited
(Incorporated in the Republic of South Africa)
Registration number 2005/022939/06
Share code: JSE
ISIN: ZAE000079711
("JSE" or “the Group”)

TRADING STATEMENT FOR THE YEAR ENDING 31 DECEMBER 2019

The JSE is currently finalising its financial results for the year
ending 31 December 2019 (the “period”), which results are expected
to be released on the Stock Exchange News Service on or about
24 February 2019.

In terms of the JSE Limited Listings Requirements, a listed company
must publish a trading statement once it is satisfied that a
reasonable degree of certainty exists that the financial results for
the period to be reported on next will differ by at least 20% from
the reported financial results for the previous corresponding
period.

Shareholders are accordingly advised that:

  - Headline earnings per share (“HEPS”) for the Group for the
    period is expected to be between 844.96 cents and 781.58 cents.
    This is between 20% (211.24 cents) and 26% (274.62 cents) lower
    than the 1056.2 cents reported for the year ended 31 December
    2018 (“the comparative period”); and

  - Earnings per share (“EPS”) for the Group for the period is
    expected to be between 845.20 cents and 781.81 cents. This is
    between 20% (211.30 cents) and 26% (274.69 cents) lower than
    the 1056.5 cents reported for the comparative period.


HEPS and EPS for the Group for the period have been impacted by
several factors, including:

  - A decline in H1 trading activity, and the impact of the new
    tiered billing model for equities trading, introduced in August
    2018;

  - Deliberate personnel recruitment to meet planned headcount
    levels compared to the low 2018 base headcount;

  - Planned increases in technology investments, particularly
    relating to the Integrated Trading and Clearing system; and

  - Once-off items.

Once-off expenditures incurred during the period relate to the JSE’s
executive leadership transition (2019: R37m) and to the proposed
acquisition of Link Market Services (2019: R6m). The impact of the
income tax credit of R31m reported in 2018 (2019: NIL) also
contributed to a high base effect year-on-year, as there is no tax
credit in 2019.

These results are in line with expectations. Despite the challenging
economic environment in South Africa, which impacts investor
appetite and activity, we remain confident in the JSE’s targeted,
strategic plans to grow and diversify revenues, and to invest in key
technologies. These actions are necessary to maintain the long-term
sustainability and competitiveness of the JSE as a critical component
of the South African financial markets ecosystem.

Shareholders are advised that the information provided in this
trading statement has not been reviewed and reported on by the
Group’s external auditors.

Sandton
20 December 2019

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 20-12-2019 07:30:00
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