Building a Legacy List. Grow. Lead Mpho Ledwaba
Disclaimer This presentation is intended to provide general information regarding the [the basics of Shares and Investing], and is not intended to, nor does it, constitute investment or other professional or financial product advice and is not intended to be used as the basis for making an investment decision. It is prudent to consult professional advisers before making any investment decision or taking any action which might affect your personal finances or business. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Past performance is no guarantee of future performance. The JSE Limited ( JSE ) and its respective directors, employees or agents do not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the fairness, accuracy or reliability of any advice, opinion, statement, completeness or correctness of the information or other data and information and conclusions contained in, displayed on, linked to or distributed through this presentation. To the maximum extent permitted by law neither the JSE and its respective directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. Your interaction, correspondence or business dealings with third parties which are referred to in this presentation are entirely at your own risk and are solely between you and such third party. You are solely responsible for identifying and familiarising yourself with any terms and conditions which will govern your relationship with such third party. The JSE does not endorse and/or authorise any person and/or company selling software and/or training courses for and on behalf of the JSE. 2
About the JSE
Role of the JSE Growth happens when connections are made The role of the JSE is to be the link that fosters a fruitful connection A connection between a buyer and a seller A connection between an Issuer/listed companies and an Investor A connection between African markets and global investors
What the JSE does The JSE as a very important gear in the larger machine that is the South African economy. We provide companies with a platform to raise the capital they need to expand and grow At the same time, the JSE also provides South Africans with the opportunity buy a stake in companies when they buy shares on the exchange. If you own a share, you own part of a company. Someone who owns one or more shares is called a shareholder Shares are sometimes referred to as stocks, equity or securities
Brief History The Johannesburg Stock Exchange (the JSE) was founded by Benjamin Wollan on 8 November 1887. In November this year, the JSE will be 130 years old. After 108 years, the open outcry system of trading was changed to an electronic system on 7 June 1996. In September 2000, the Johannesburg Securities Exchange moved to its present location in Sandton. In 2003 the AltX, a board for small to medium sized companies. On 14 April 2014, the JSE re-branded, demonstrating an identity of a modern African marketplace that connects investors to growth opportunities not only in South Africa but globally.
JSE-listed companies a diversified offering Top 20 represents a global mix Many leading South African companies have become significant regional and/or global players Top 20 Companies Anheuser-Busch InBev SA NV British American Tob plc Naspers Ltd -N- Glencore plc Compagnie Fin Richemont BHP Billiton plc Anglo American plc Firstrand Ltd Steinhoff Int Hldgs N.V. Vodacom Group Ltd Standard Bank Group Ltd Sasol Limited MTN Group Ltd Old Mutual Plc South32 Limited Sanlam Limited Mondi plc Aspen Pharmacare Hldgs Ltd Barclays Africa Grp Ltd Shoprite Holdings Ltd Remgro Ltd Nedbank Group Ltd Industrials 3% Financials 19% Cons Serv 13% Oil & Gas 0% Health Care 2% Technology Utilities Telecomm. 0% 0% 4% Additional 1% Basic Mat. 19% Cons Goods 39% 0 500 1 000 1 500 2 000 2 500 ZAR Billions As at end July 2017
IPO History Equity market cap at stands at R14.63 trillion 384 Companies listed: Dual listed companies: 94 (Primary Listings 44, Secondary 51) Domestic: 311 Foreign: 73 70 Number of new listings (2003-2017) 60 50 40 30 20 2017 11companies 6 Main 5 AltX 10 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 8
Liquidity Globally competitive In top 20 global exchanges by market cap 330% June 2017 280% Shenzhen SE 230% 180% NASDAQ (US) Shanghai SE 130% BM&BOVESPA JSE 80% Taiwan Deutche Boerse SIX Swiss 30% SGX SGX Moscow Korea Ex NYSE ASX LSE NSE India HKEX Japan Exchange Group BME-Spanish Ex TMX Bombay SE 0 1000 2000 3000 4000 5000 6000 7000-20% # of Listed Companies Source: WFE & Strate (JSE Local share register)
Liquidity Exposure to Africa s consumers and assets Continent s exchanges in market cap and liquidity terms 80% May 2017 70% 60% JSE 50% 40% EGX 30% 20% 10% 0% -10% ZSE Morocco BVMT BSE DSE BRVM SEM GSE Kenya LuSE NSX Nigeria # of listed companies 0 50 100 150 200 250 300 350 400 450 Note: Malawi & Uganda omitted due to small MCaps Source: African Alliance, ASEA, WFE & Strate
ZAR Billions Capital raised on the JSE OVERVIEW 1 600.00 1 400.00 The JSE ranked 3 rd in the World for Regulation of securities exchanges (WFE 2016/2017) 1 200.00 1 000.00 250.19 800.00 600.00 93 154 1 176.68 116.27 The JSE is ranked 1 st in the World for financing through the local equity market (WEF 2016/2017) 400.00 200.00 0.00 78 464.99 505.99 549.88 88 365.3 107 81 187.8 77 14.49 39.04 64.16 2008 2009 2010 2011 2012 2013 2014 2015 2016 Bonds Equity capital The totals may vary yearly
Size and Liquidity around the globe Source: WFE Top 20 Exchanges Market Cap as at July 2017 (USD Million Nasdaq - US Japan Exchange Group Inc. Shanghai Stock Exchange Euronext LSE Group Hong Kong Exchanges and Clearing Shenzhen Stock Exchange TMX Group BSE India Limited Deutsche Boerse AG National Stock Exchange of India SIX Swiss Exchange Korea Exchange Nasdaq Nordic Exchanges Australian Securities Exchange Johannesburg Stock Exchange Taiwan Stock Exchange BME Spanish Exchanges BM&FBOVESPA S.A. 0.0 4 000 000.0 8 000 000.0 July 2017 Liquidity of the Top 20 Exchanges Shenzhen Stock Exchange Shanghai Stock Exchange Nasdaq - US Korea Exchange Japan Exchange Group Inc. BME Spanish Exchanges Deutsche Boerse AG Taiwan Stock Exchange BM&FBOVESPA S.A. Australian Securities Exchange SIX Swiss Exchange Johannesburg Stock Exchange LSE Group Nasdaq Nordic Exchanges National Stock Exchange of India Hong Kong Exchanges and Clearing Euronext TMX Group Singapore Exchange BSE India Limited 0% 50% 100% 150% 200% 250% 300% 12
How companies have grown by being listed on the exchange
How companies have grown from being listed on the JSE Listing date: 18 February 2012 Share price upon listing: R1.80 Share price today: R891.00 Market cap when listing: R119 million Market cap today: R103 billion Number 23 on the top 100 www.jse.co.za
How companies have grown from being listed on the JSE Listing date: 12 September 2014 Share price upon listing: R21.00 Share price today: R2 917.41 Market cap when listing: R2 billion Market cap today: R1.2 trillion Number 3 on the top 100 www.jse.co.za
How companies have grown from being listed on the JSE Listing date: 7 April 1936 Share price in 1993: R17.00 Share price today: R220.55 Market cap in 1993: R784 million Market cap today: R132 billion Number 18 on the top 100 *We only have data from 1993 www.jse.co.za
Success stories being listed on the JSE Listing date: 2 June 2011 Initially listed on AltX board (our board for small to medium sized companies) and within a year they moved to the main board of the JSE Curro was founded in 1998 and started a school with 28 learners in a church and constructed first school in 1999 Reason for listing: Needed capital to support their vision of 40 schools by 2020 Capital raised: R 800 000
Success story being listed on the JSE Listing date: 2 November 2012 Reason for listing: assisted in giving Delta Property Fund a better ability to identify and close deals Delta Property Fund listed with 20 properties this grew to over 80 properties in just over two years Capital raised: R 979 million
Investing on the JSE
Assumptions If you invested R 10 000 Simulation on just a few shares Buy the shares and hold the shares Share prices as at the 31 August 2017 The calculation does not include Broker and related fees for trading Dividends earned on the shares held
Dis-chem 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 R13 734 21
Famous Brands 120000 100000 80000 R72 826 60000 40000 20000 0 22
Delta Property Fund 14000 12000 10000 8000 6000 4000 R 9014 2000 0 2012/11/02 2013/11/02 2014/11/02 2015/11/02 2016/11/02 23
Curro Holdings 160000 140000 120000 100000 R96 089 80000 60000 40000 20000 0 24
Growthpoint Property 25000 20000 R16 268 15000 10000 5000 0 25
Value for Listing & Value for investing Some examples
Billions Delta Property Fund For the company For the Investor 7 6 5 4 3 2 1 Delta Prop. Fund historical market cap since listing - 2012/11/02 2013/11/02 2014/11/02 2015/11/02 2016/11/02 1200 1000 800 600 400 200 Delta Prop. Fund share price performance since listing 0 2012/11/02 2013/11/02 2014/11/02 2015/11/02 2016/11/02 Capital raised on listing R 979 million
Billions Curro For the company For the Investor 25 20 15 10 5 0 Curro historical market cap since listing 7000 6000 5000 4000 3000 2000 1000 0 Curro share price performance since listing Capital raised on listing R 51 million
Billions Dis-Chem Property Fund For the company For the Investor 30 25 20 15 10 5 0 Dis-Chem historical market cap since listing 3500 3000 2500 2000 1500 1000 500 0 Dis-Chem share price performance since listing Capital raised on listing R 4,3 Billion