JSE Limited Pre Close Meeting May 2021 Final

JSE Limited Pre-close meeting May 2021

©Johannesburg Stock Exchange. The content of this presentation is strictly reserved for the use of the JSE. Agenda

Market activity Pg 4

Operational update Pg 6-7

Outlook Pg 9-10

©Johannesburg Stock Exchange 2 Market activity drivers

©Johannesburg Stock Exchange 3 Significant swings in level of market activity through the course of 2020 Volatility skewed in H1 2020

Published ADV growth Billable ADV growth All Share Index 13% 8% 10% 70% 62% 4% 0% 3% 0% 60% -2% -2% -5% -9% 0% 50% -13% 39% 40% 34% -20% 30% 30% 25% 23% 21% 20% 20% 16% -40% 11% 12% 10% 10% 3% 5% 4% 2% -60% 0% -2% -10% -5% -8% -80% -12% -12% -20% -17% -17% -20% -30% -100% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ADV: YOY movements ©Johannesburg Stock Exchange ALSI : Month-on-Month movements 4 Billable value traded includes all reported trades Market activity normalising vs a high comparable base in 2020 2021 Market activity (end April YTD)

Billable equity value Equity transactions Traded*** Equity derivatives value Number of IPOs* -22% -11% traded 4 (2020: 49%) (2020: 25%) 6% ADT ↓18% to 330 111 (2020: (2020: 3) Billable ADV ↓7% to R28bn (2020: 14%) 404 591) (2020: R30bn)

Currency derivatives Commodity derivatives Interest rate derivatives Bond nominal value** contracts contract contracts -14% -41% -4% -7% (2020: 13%) (2020: -7%) (2020: 8%) (2020: 17%)

*Montauk Renewables – Corporate action **Bond Repo ↓13% to R7.1tr (2020: *** Published equity value traded -9% Karooooo – Corporate action R8.2tr); Standard Bonds ↓17% to R3.9tr (2020: 33%); Published ADV ↓5% at Sappi Southern Africa – unsecured debt instrument (2020: R4.7tr) R23bn (2020: R24bn) listed on the equity market Deutsche Konsum REIT – New listing

©Johannesburg Stock Exchange 5 Operational update

©Johannesburg Stock Exchange 6 YTD achievements and H2 objectives H2 2021 • SA tomorrow conference: expand to UK, Middle East and South-east Asia Conference • Diesel contract: scheduled go-live in H2 2021 • JIS Integration and new opportunities Achieved best gender About to Delivered phase • IS: finalise trade analytics & Data BP Reporting balance on boards of Listed first social submit ICH** 1 of the application platform any developing country bond on our Launched phase 1 of Data BP in the G20 (issued by Sustainability the trade analytics forms to • Asia strategy: expand the China trial period to Reporting regulator SSE) Segment platform platform other global distributors, as well as Singapore • OTC CCP

Mar Apr May 2021 initiatives

Published Completed Consultation Paper Listed first self- migration of Submitted application called “Cutting Red BDA system CIIS* receiving and labelled Launched access to for private placements Tape Aimed at processing live JSE sustainability-linked real-time, on screen market to regulator Effective and indices data bond pricing for our JSE Top Appropriate 40 Index Options Regulation” contracts

Capital Markets Post Trade Services Information Services Information Services Group-wide initiative

*China Investment Information Services Limited (CIIS) ©Johannesburg Stock Exchange **Independent Clearing House 7 *** Sustainable Stock Exchanges (SSE) JSE Investor Services (JIS) – Update

Revenue mix of the In this COVID-19 business: context • A combination of Constrained • Lower variable Positive commercial market revenue impacted momentum Business acquired annuity revenue environment by COVID in 2020 mostly for revenue driven from • ShareHub launched registry services resulting in client and 2021 diversification and in August 2020 and variable de-listings, • growth potential Lower non- • New clients secured revenue driven suspensions, less recurring revenue in Q1 2021 by corporate corporation actions temporarily actions weighing on margins

New opportunities for JIS: • Entered into collaboration with William Radcliffe in Q2 2021 • Asset reunification and share register clean ups • Share register analytics • BEE training • Executive share schemes

Business has been fully consolidated since November 2020 and will be isolated as a separate segment in financial statements ©Johannesburg Stock Exchange 8 Outlook

Lower interest rate High base effect owing to environment has negative FX one-off gain in base hyper volatility in H1 2020 impact on finance income

Personnel costs Revenue • Salaries benchmarked against local Finance Income FX impact peers • High base effect impact • Repo rate decreased from • Information Services: we • Organisational structure set at 427 owing to lower market 6.5% to 3.5% in 2020 bill on the average FX rate employees with a 5% vacancy rate volumes compared to the • Average headcount at 408 • Negative impact of lower for the month COVID-19 driven volatility vs 393 in 2020 interest rates on net in H1 2020 • Stronger Rand in 2021 to • However, lower attrition rates has finance income impact market data rand resulted in higher avg. headcount • FX one-off gain in base (H1 nominal value • Average salary increases are 2020: 39m) limited to inflation estimates

Depreciation and Technology costs Inorganic investments amortisation • Bulk of costs contractual, with annual inflationary Total CAPEX: R145 million: increases We have provided a multi- • Maintenance and upgrade of our year depreciation profile of • Cybersecurity spend infrastructure; known CAPEX for 2021 and typically in excess of • organic growth including private 2022 inflation placement platform for SMEs and • infrastructure finance; • 2021: R259 million Successfully implemented • Smart regulation; • 2022: R232 million the mainframe upgrade • IT security; and • Duplicate costs • Leasehold improvements • Expensed in H1 2021

Organic investment Balance sheet  Focus on rejuvenation of optionality infrastructure and systems Strengthen Financing  Both organic and inorganic  Investment in resilience and existing options investment funded from own stability cash  Revenue growth through business available Ensuring an  Currently no debt new product and services adequate level of regulatory capital remains our capital allocation Inorganic growth priority Shareholder returns Diversify  Diversification of revenue, Optimise  Board resolved to adjust the with focus on annuity & grow Group's dividend policy to income shareholder reflect a pay-out ratio of 67%  Areas: Issuer Services; Data the business value - 100% of current earnings  Focus on bolt-on for the future  Remain committed to acquisitions optimising shareholder value