JSE : unreviewed interim results for the six months ended 30 June 2020

JSE Limited

Incorporated in the Republic of South Africa Registration number 2005/022939/06 Sharecode: JSE

ISIN: ZAE000079711

LEI: 213800MZ1VUQEBWRFO39 ("JSE" or "the Group")

JSE LIMITED UNREVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2020

FINANCIAL	PERFORMANCE	Group
		Six months
		Six months
		to June 2020	to June 2019	% change
Total revenue	R million	R million
1 323	1 084	22%
Operating expenses	801	670	20%
Earnings	before interest and tax	523	414	26%
Net profit after tax	485	398	22%
Net cash	flow from operations	525	444	18%
Earnings	per share (cents)	569.1	466.3	22%
Headline	earnings per share (cents)	569.0	466.1	22%
Total capital investment	46	33	39%

In the context of a challenging operating environment, the JSE delivered pleasing results in the first half of this year. Group earnings before interest and tax (EBIT) increased by 26% to R523 million (2019: R414 million) and net profit after tax (NPAT) increased by 22% to R485 million (2019: R398 million). Total basic earnings per share (EPS) rose by 22%, to 569.1 cents (2019: 466.3 cents) and total headline earnings per share (HEPS) rose by

22% to 569 cents (2019: 466.1).

Financial markets have been turbulent and volatile, with record trading volumes amplified by the sovereign credit rating downgrade, South Africa's exit from the World Government Bond Index, and rand volatility.

The JSE recognises the substantial impact of the COVID-19 pandemic on our clients, the financial services sector, and our communities and society. The Group's response is underpinned by a focus on the health and safety of our staff, support for our clients and the operational resilience of our platforms and infrastructure.

Total revenue increased by 22% to R1.32 billion (2019: R1.08 billion). This performance was achieved through:

• An increase in revenue activity drivers and a change in trading patterns in the main markets operated by the JSE;
• Net foreign outflows in the Equity and Bond markets in the period to date; and
• Growth in other income driven by foreign exchange gains.

Expenses increased by 20% to R801 million (2019: R670 million), largely in the following areas:

• Executive committee changes, which included restraint payments;
• Higher leave pay provisions linked to changing leave patterns;
• Additional general expenditure in response to COVID-19;
• Annualised impact of ITaC depreciation;
• Support and maintenance of the Integrated Trading and Clearing (ITaC) system, as well as increased technology spend on improved resilience; and
• Higher market-activity-related costs.

The JSE remains in a healthy position with regard to cash and capital. We are well positioned to continue our deliberate investment in those areas of our business that we believe to be critical to our long-term sustainability. The dividend policy of the Group remains unchanged.

For further information

This short-form announcement is the responsibility of the directors. It is only a summary of the information in the full announcement and does not contain full details. Any investment decision should be based on the full announcement, published and available at: https://senspdf.jse.co.za/documents/2020/JSE/ISSE/JSE/05082020.pdf

and on the JSE website at: www.jse.co.za.

The full announcement is also available at our registered offices and the offices of the sponsor for inspection at

no charge during office hours. Copies of the full announcement may be requested by emailing: [e-mail]

Sponsor:

RAND MERCHANT BANK

(A division of FirstRand Bank Limited) 5 August 2020