JSE Limited Trading Statement

February 23, 2009 at 12:00 AM EST
JSE LIMITED
TRADING STATEMENT

Stakeholders are advised that the earnings per share ("EPS") of the JSE Limited Group ("Group") for the year ended 31 December 2008 ("the period") are expected to be between 43% and 53% higher than the previous year`s 321.3 cents per share and headline earnings per share ("HEPS") are expected to be between 60% and 70% higher than the previous year`s 292.1 cents per share.

The EPS and HEPS for the Group for the year ended 31 December 2008 have been impacted by a number of factors. These include (before tax):

  • the highly volatile world equities market resulting in an increase in equity trades on the JSE which contributed to an increase in revenue of between 17% and 27% for the period;
  • the final tranche of options issued to qualifying black shareholders in terms of the Black Shareholder Retention Scheme, amounting to a cost of approximately R38 million. The actual current impact of this on cash flow is zero. There will be a small positive impact on cash flow when the options are exercised in 2011. This concludes the equity cost in respect of the JSE`s BBBEE initiative, implemented when it listed in June 2006;
  • the impact of the "mark to market" of the participation interests issued under the first tranche of the Employee Scheme approved by JSE shareholders. This has resulted in a reduction in expenses in the current period of approximately R33 million but the continuing accrual for this tranche amounted to a charge of R13 million. The net effect of the first tranche is thus expected to be a reduction in expenses of approximately R20 million;
  • the impact of the issue of approximately 1 million participation interests under the second tranche of the Employee Scheme approved by the JSE shareholders and the acquisition of call options to economically hedge this liability over the life of the tranche. This resulted in a net charge of approximately R28 million; and
  • the impact of impairments to the System Replacement Project amounting to an estimated R9 million, resulting from additional work to software design and development in order to ensure that it delivers full value.

And in the comparable period, ended 31 December 2007:

  • a once-off receipt, in 2007, of R75 million, from a contractor, releasing the contractor from its further obligations with regard to its agreements with the JSE;
  • the impact of the acceleration of 25% of the first tranche of the Employee Scheme due to be paid in December 2008 but brought forward to December 2007, resulting in the bringing forward in 2007, of a cost of R20 million;
  • in recognition of Participants` agreement to cap the JSE`s liability under the first tranche, resulting in cash outflow then of R53 million; and
  • the final issue of shares at par value to the JSE Empowerment Fund, amounting to a cost of approximately R30 million in that period.

Stakeholders are advised that the information provided in this trading statement has not been reviewed and/or reported on by the Group`s auditors.
Gary Clarke
Company Secretary
Sandton
23 February 2009