JSE (JSE) CMD 2024 summary

Strategic direction and transformation

• Focused on protecting the core business, transforming operations, and partnering for a sustainable marketplace, aiming for high-quality, sustainable earnings by 2026.

• Advancing infrastructure modernization, including cloud migration, AWS partnerships, and digital asset market exploration to enhance scalability and resilience.

• Diversification strategy has reduced reliance on traditional trading revenues, with non-trading income rising from 29% to 37% of total/operating income since 2019.

• Expansion into new markets such as carbon trading, private placements, and digital assets, alongside growth in information and investor services.

• Emphasizing sustainability, with a dedicated ESG segment, improved B-BBEE rating from Level 3 in 2019 to Level 1, and improved ESG disclosure guidance.

Financial performance and capital allocation

• Total income grew at a 5% CAGR from ZAR 2.3bn in 2019 to just under ZAR 3bn in 2023, with robust EBITDA margins and consistent dividend payouts averaging over 80%.

• Earnings per share increased from ZAR 8.15 in 2019 to ZAR 10.19 in 2023, reflecting operational excellence and profitability.

• Dividend yield increased to 8.5% in 2023, and return on equity improved to 19.4% from 18.0% in 2019.

• Strong cash generation (ZAR 1.1bn in 2023) and liquidity (ZAR 2.6bn cash balance) support ongoing modernization and strategic investments.

• Regulatory capital remains strong at ZAR 1bn, ensuring compliance and financial stability.

Market and regulatory developments

• Regulatory reforms and proactive stakeholder engagement have streamlined listing requirements, reducing requirements volume by 50% and enhancing competitiveness.

• Regulatory landscape evolving with new crypto asset regulations, market fragmentation standards, and ongoing FMA amendments.

• Foreign equity outflows reduced and bond market inflows tripled year-on-year by September 2024, reflecting improved sentiment.

• Sustainability segment raised ZAR 11.7bn via 82 sustainable bonds, and ESG disclosure guidance widely adopted.

• Actively collaborating with stakeholders and regulators to support market integrity and innovation.