JSE : Summarised consolidated annual financial results and ordinary cash dividend declaration for the year ended 31 December 2022

SUMMARISED

CONSOLIDATED ANNUAL FINANCIAL RESULTS

AND ORDINARY

CASH DIVIDEND

DECLARATION

for the year ended 31 December

CONTENTS

COMMENTARY	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	NOTES TO THE CONSOLIDATED
OF COMPREHENSIVE INCOME	OF FINANCIAL POSITION	OF CHANGES IN EQUITY	OF CASH FLOWS	FINANCIAL STATEMENTS

CONTENTS

COMMENTARY	1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	8
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	9
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	11
CONSOLIDATED STATEMENT OF CASH FLOWS	13
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	14

SUMMARISED CONSOLIDATED ANNUAL FINANCIAL RESULTS 2022

CONTENTS

COMMENTARY

CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	NOTES TO THE CONSOLIDATED
OF COMPREHENSIVE INCOME	OF FINANCIAL POSITION	OF CHANGES IN EQUITY	OF CASH FLOWS	FINANCIAL STATEMENTS

COMMENTARY

JSE Limited

(Incorporated in the Republic of South Africa) Registration number: 2005/022939/06 Share code: JSE

ISIN: ZAE000079711

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

Summarised consolidated annual financial results and ordinary cash dividend declaration for the year ended 31 December 2022

"The JSE's solid performance reflects the quality of our earnings and the resilience of our operating platforms within a challenging trading environment. I am pleased to report year-on-year growth of 4% in headline earnings per share, and a strong ROE of 18%, well within our long-term target range. Our strategy to diversify revenue continues to gain traction, with non-trading revenue up 13% year-on-year to 25% of total operating revenue. This performance is underpinned by robust operational processes and 99.9% uptime across our markets. The business remains strongly cash generative and this has enabled the Board to declare an ordinary dividend of 769 cents per share for 2022, resulting in a distribution to shareholders of R668 million. These results demonstrate the value of our investment strategy and provide momentum for future growth."

- Leila Fourie, Group CEO

• Net profit after tax (NPAT) increased by 4% YoY to R749 million, with headline earnings per share (HEPS) increasing by 4% YoY to 917.7 cents per share (2021: 878.9 cents).
• Earnings before interest, tax and depreciation (EBITDA) of R1.07 billion increased by 1% YoY.
• The Group recorded revenue growth across its business segments. Operating revenue grew 5% to R2.7 billion, with an 11% increase in revenue from Information Services and a 28% increase in revenue from JSE Investor Services (JIS). The JSE further increased the proportion of its revenue derived from non-trading activity in line with our strategic intent (non-trading revenue grew by 13% from R590 million to R668 million in 2022).
• Total operating expenditure increased by 7.5% YoY to R1.9 billion. Other operating expenditure growth includes an increase in administration fees relating to an increase in JIS revenue generating activities and an increase in electricity and building utilities (e.g., diesel). Personnel costs reflect annual salary increases and the annualised impact of headcount relating to new acquisitions.
• Rising interest rates and growth in margin deposits have supported higher net finance income, which increased 40% YoY to R203 million (2021: R146 million).
• Continued strong cash generated from operations of R978 million has enabled the Board to declare an ordinary dividend of 769 cents per share for 2022, an increase of 2% YoY. The JSE will maintain a pay-out ratio between 67% - 100% of distributable earnings in respect of the annual ordinary dividend.
• Capital expenditure of R127 million was focused on operational resilience and growth initiatives.
• The Group maintains a robust balance sheet and cash of R2.2 billion at 31 December 2022. Ring-fenced and non-distributable cash (regulatory capital and investor protection) amounts to R1.2 billion. Of the remaining R1 billion, R668 million will be distributed as dividends.

SUMMARISED CONSOLIDATED ANNUAL FINANCIAL RESULTS 2022	1

CONTENTS

COMMENTARY

CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	NOTES TO THE CONSOLIDATED
OF COMPREHENSIVE INCOME	OF FINANCIAL POSITION	OF CHANGES IN EQUITY	OF CASH FLOWS	FINANCIAL STATEMENTS

Overview of results

R million (unless stated otherwise)	FY2022	FY2021	% change
Operating revenue	2 650	2 517	5%
Total revenue	2 704	2 576	5%
Personnel expenses	693	650	7%
Other expenses	946	871	9%
Depreciation and amortisation	273	258	6%
Total expenditure	1 912	1 779	7.5%
Earnings before interest and tax (EBIT)	792	798	(1%)
Net finance income	203	146	40%
Net profit after tax (NPAT)	749	722	4%
EBIT margin	29%	31%	(2 pts)
Earnings before interest tax depreciation	1 066	1 055	1%
and amortisation (EBITDA)
EBITDA margin	39%	41%	(2 pts)
Earnings per share (EPS) (cents)	911.1	874.1	4%
Headline earnings per share (HEPS) (cents)	917.7	878.9	4%
Ordinary dividend per share declared (cents)	769	754	2.0%
Special dividend per share declared (cents)	-	100	(100%)
Net cash generated from operations	978	917	7%
Capital expenditure	127	165	(23%)

Business highlights

Our core business model, centred around quality earnings and strong cash generation, continues to provide a solid foundation for growth. At the same time, we saw our inorganic growth initiatives contribute positively to the Group's financial results.

2022 Highlights:

Protect and grow the core business

• Introduced Transition and Sustainability Linked Bonds.
• Launched actively managed exchange-traded funds (ETFs) and certificates.
• Introduced Listing Requirements reforms.
• Obtained licence to operate as an independent clearing house and central counterparty (CCP) by the FSCA for JSE Clear.
• Maintained operational resilience and robustness, with operational availability (99.9%) above the long-term average of 99.83%.
• Maintained local market share by value traded.

Transform the business

• Launched JSE Private Placements (JPP) with 22 live deals as at year-end December 2022 and over R12 billion in investor capital onboarded.
• Launched JSE Trade Explorer to provide equity market trade analytics.
• Grew JIS and added 10 new registry clients and 11 new Share Plans clients.

Partner for a sustainable marketplace

• Returned to the office in March 2022 and successfully launched our hybrid way of work.
• Published Sustainability and Climate Change Disclosure Guidance.
• Achieved record-high Net Promoter Score (NPS).
• High levels of motivation and solid engagement scores for employees.

2	SUMMARISED CONSOLIDATED ANNUAL FINANCIAL RESULTS 2022

CONTENTS

COMMENTARY

CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	CONSOLIDATED STATEMENT	NOTES TO THE CONSOLIDATED
OF COMPREHENSIVE INCOME	OF FINANCIAL POSITION	OF CHANGES IN EQUITY	OF CASH FLOWS	FINANCIAL STATEMENTS

Revenue performance per segment

Capital Markets

• Primary Market: +3% to R158 million (2021: R153 million)
• Equity Trading*: -1% to R512 million (2021: R517 million)
• Equity Derivatives Trading: +9% to R163 million (2021: R150 million)
• Currency Derivatives Trading: R41 million (2021: R41 million)
• Bond and Interest Rate Trading: Interest rate revenue +16% to R82 million
  (2021: R71 million)
• Commodity Derivatives Trading: +6% to R103 million (2021: R97 million)
• Issuer services: +19% to R7 million (2021: R6 million)

* Includes colocation revenue.

JSE Investor Services (JIS)

• +28% to R159 million (2021: R125 million)

Post-Trade Services

• Clearing and Settlement revenue +3% to R438 million (2021: R423 million)
• Back-officeservices (BDA) revenue remained stable at R351 million (2021: R351 million)
• Funds under management revenue +18% to R95 million (2021: R81 million)

Information Services

• +11% to R388 million (2021: R350 million)

Financial performance

Total operating expenditure increased by 7.5% YoY.

• Personnel costs increased by 7% to R693 million (2021: R650 million).
  o Gross remuneration increased due to annual salary increases and an increase in the average headcount from the Share Plans business.
• Technology costs increased by 2% to R345 million (2021: R337 million), largely driven by:
  o New growth initiatives, which include JIS and JPP.
• Other operating expenses increased by 12% to R601 million (2021: R534 million), largely owing to:
  o Impact of operating environment pressures across the board, including an increase in electricity and building utilities (e.g., diesel).
  o An increase in administration fees relating to an increase in JIS revenue generating activities.
  o Low base effect owing to COVID-19.
• Depreciation and amortisation increased by 6% to R273 million (2021: R258 million), owing to accelerated depreciation on software licences due to new solutions implemented.

Net finance income

Net finance income increased by 40% YoY due to higher yields on the JSE's cash balances following multiple repo rate increases, as well as an increase in JSE Clear margin deposits.

Other income

• Other income decreased to R54 million (2021: R59 million). The JSE held
  USD4.4 million in cash at the end of December 2022 (2021: USD6.8 million).

SUMMARISED CONSOLIDATED ANNUAL FINANCIAL RESULTS 2022	3