JSE (JSE) CMD 2024 summary

Strategic direction and transformation

• Advancing infrastructure modernization, including cloud migration, AWS partnerships, and ITaC project to enhance scalability, resilience, and agility.

• Accelerating diversification with new markets such as carbon and digital assets, reducing reliance on capital markets revenue from 45% to 37% over five years.

• Emphasizing sustainability, with a growing ESG segment, improved B-BBEE rating from Level 3 in 2019 to Level 1, and a Sustainability Segment raising ZAR 11.7bn.

• On track with the 2026 strategic framework to protect the core, transform operations, and partner for a sustainable marketplace.

• Key initiatives include partnerships for private placements, modernization of broker systems, and launch of advanced colocation services.

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%.

• Non-trading income rose from 29% to 37% of total/operating income between 2019 and 2023, with high single to low double-digit growth expected.

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

• Maintains strong cash generation (ZAR 1.1bn in 2023), liquidity (ZAR 2.6bn cash balance), and a pay-out ratio of 67–100% of earnings.

• CapEx guidance for 2024 is ZAR 145m–165m, with disciplined M&A focused on strategic, bolt-on opportunities.

Product, technology, and market innovation

• Expanded product suite includes actively managed ETFs, structured products, voluntary carbon markets, and private placements.

• JSE Investor Services now contributes up to 20% of capital markets revenue and 7% of group revenue, supporting diversification.

• Technology upgrades include cloud-based colocation, low-latency networks, BDA modernization, and partnerships with AWS.

• Digital asset initiatives include plans for crypto-based derivatives, a blockchain-based digital exchange, and listing crypto ETFs/ETNs.

• Data monetization and analytics prioritized, with cloud migration and new platforms like Market Data Connect, Trade Explorer, and ESG data initiatives.