16h30 Introduction by Krishna Govender. 16h35 Welcome by Chairman - Humphrey Borkum. 16h Results by CFO - Freda Evans

Transcription

1 The JSE Limited 1

2 2 Proceedings 16h30 Introduction by Krishna Govender 16h35 Welcome by Chairman - Humphrey Borkum 16h Results by CFO - Freda Evans 17h30 Options past and future - Krishna Govender 17h45 Questions / suggestions to Panel 18h30 Snacks and drinks

3 3 Humphrey Borkum Current involvement with JSE Non-executive Chairman since 2003 Chairman of Nominations Committee Member of the Audit Committee Member of the Human Resources Committee Past involvement with JSE President Late Mr Max Borkum President in

4 4 TRANSFORMATION Rightsholders to Shareholders Mutual association >> Public company >> Listed Company 100% 100% 90% 80% 70% 60% 50% 40% 28% 43% % 20% 10% 0% 12% 0% 0% Rightsholders Black Foreign

5 5 TRANSFORMATION Black representation 1994 Predominantly white

6 6 TRANSFORMATION Black representation TODAY 29% - Board members (14% black female) 13% - Top management 13% - Senior management 53% - Middle management 51% - Overall JSE staff Direct ownership: BEE Scheme 7.36% JEF 2.04% TOTAL 9.40% Stockbroking firms 14% Stockbrokers 15%

7 7 RETAIL CLIENTS Focus on increasing retail clients 2006 up to 70% pricing cut in data fees Broader access to data Education drive Schools Universities Pilot test at 150 schools nationwide Schools challenge 343 (7064 learners) Universities investment challenge 21 (1563 students) Broad based schemes bring new clients to the market

8 8 BLACK OWNERSHIP JSE LISTED COMPANIES Accuracy of various current percentages questioned Project to compile methodology for determining black ownership in listed companies Emphasis on indirect ownership Seek industry buy-in and application

9 JSE Limited Results Feedback: Six months to 30 June 2007 September

10 10 First Half Highlights Markets continue on buoyant path All-Share continues to reach new highs Currency futures launched Largest single stock futures market in the world All three of JSE s main markets break trading records JSE Ltd performs well Revenue up by 31% Cash from operations up by 67%

11 11 Contribution of Revenue Streams 100% 80% 60% 40% 20% 0% 7.1% 5.6% 6.4% 5.9% 9.8% 10.5% 12.0 % 11.8 % 13.9 % 14.4 % 14.1% 14.4 % 14.7% 14.0% 22.7% 22.6% Other Agricultural Derivatives Info Sales Listing Fees Equities Derivatives Equities RM C&S BDA Services Equities Trading

12 Review of Business Areas: Equities Trading, Risk Management, Clearing & Settlement 12 R' , , , , , ,000 80,000 60,000 40,000 20,000 0 Equities Trading, Risk Management Clearing & Settlement Revenue 59% 32% 28% Strate RM,C&S EquitiesTrading Average daily number of deals up by 19% Average daily value traded up by 18% Record daily number of trades (78,676) at June 2007 futures close-out (June 2006 close-out: 65,651) - Note: R39.2m STRATE revenue due to changed service level agreement with STRATE offset by equal cost item

13 13 Review of Business Areas: Equity Derivatives Strong growth in Equity Derivatives average monthly contracts up 200% Equity Derivatives Revenue Single Stock Futures up 299% 60,000 Index Futures up 6% R'000 50,000 40,000 30,000 20,000 33% Continued appetite for Can-Do Options - 85 listed by end of period (end-2006: 20) 10,

14 14 Review of Business Areas: Agricultural Derivatives Daily average number of contracts traded grows 35% 25,000 Agricultural Derivatives Revenue Continued strong growth in second grade white maize market R'000 20,000 15,000 10,000 36% Physical delivery maintained under 2%, indicating use of market as hedging facility 5,

15 15 Review of Business Areas: Information Sales R'000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Information Sales Revenue 38% % increase in total number of terminals (on June 06) 38% local 27% international 33% increase in number of equity live data terminals 26% increase in number of indices live data terminals 53% increase in number of indices live data terminals

16 16 Review of Business Areas: Issuer Services (Listings) 15 new listings during period 7 on the Main Board 8 on AltX Listings Revenue AltX, launched in 2003, had 46 listings on 30 June ,000 45,000 Listings pipeline remains strong R'000 40,000 35,000 30,000 25,000 20,000 27% Total equity capital raised climbs 18% during period 15,000 10,000 5,

17 17 Review of Business Areas: Technology R'000 60,000 50,000 40,000 30,000 20,000 10,000 BDA Services Revenue 22% BDA revenue growth tied to equity market performance LSE s new TradElect system launched on JSE; system performing well Project Orion running behind schedule Phase C launch expected in November

18 18 Overview of Consolidated Results Six months to 30 June % Change R'000 R'000 Revenue 411, ,025 31% Other income 13,219 41,745 (68%) Operating costs (387,010) (261,442) 48% Operating profit 37,666 93,328 (60%) Net financing income 37,759 22,522 68% Share of profit of equity accounted investees 12,069 18,966 (36%) Pre-tax profit 87, ,816 (35%) Tax (46,961) (42,591) 12% Profit for the period 40,533 92,225 (56%) Basic earnings per share (c) Headline earnings per share (c)

19 Consolidated Results 2: Revenue Split Six months to 30 June % Change R'000 R'000 Revenue Equities trading fees 84,298 65,610 28% Equity derivatives fees 53,698 40,235 33% Agricultural products fees 21,832 16,112 36% Yield-X fees % Risk Management, clearing & settlement fees 53,675 40,668 32% Information sales 38,915 28,281 38% Membership fees 3,328 2,9671 2% Listing fees 44,044 34,574 27% BDA Services 51,926 42,457 22% Funds management & other 20,363 17,385 17% Sub-Total 372, ,427 STRATE Ad Valorem fee 39,228 24,598 59% Total Revenue 411, ,025 31% 19

20 20 Consolidated Results 3: Costs Six months to 30 June R'000 R'000 Strate Ad Valorum 39,228 24,598 Operating Costs Personnel costs 58,378 54,311 Other costs 159, ,762 Share-based costs Long-Term Staff Incentive Scheme 46,600 6,000 JSE Empowerment Fund 30,400 18,071 Black Shareholder Retention Scheme 52,600 11,700 Total Costs 387, ,442

21 21 Review of Costs Excluding share-based costs: Cost:Income ratio falls to 63% (2006: 72%) Personnel costs up 7% Other operating costs up 8.5% Share-based costs: Have minimal impact on cash flow Fulfill Broad-Based BEE and Staff Incentive aims Broad-based BEE transaction almost through P&L JSE Empowerment Fund complete Last tranche of Black Shareholder Retention Scheme in 2008 Issued tranche of Long-term Staff Retention Scheme runs until 2011

22 22 Shareholder Composition End July 2006 End June % 19% 4% 4% 9% Foreign Institutional Member 7% 15% 1% 36% Pension Retail 62% Unclaimed 28% 13%

23 23 Focus for Second Half Attracting new companies, including inward listings Listing new ETFs which now have FSB approval Working with Treasury to expand participants in currency futures market Investigating hurdles to shortening settlement cycle Finding new ways to provide clients with greater access to African and International Capital Markets Continuing to implement technology upgrade

24 24 Options Award Effective date No of Options (per 1000 shares held) Price of Options Exercise date 1st 05-Jun R 4.81 Jun-11 2nd 01-Jun R Jun-11 3rd 01-Jun-08?? Jun-11 3 rd and final award June/July 2008

25 25 Performance JSE Share Performance compared with Option Price Rands Share Price Option Price Jun- 05 Sep- 05 Dec- 05 Mar- 06 Jun- 06 Sep- 06 Dec- 06 Mar- 07 Jun- 07 Sep- 07 Time

26 Questions? 26