Reviewed interim financial statements for the six months

August 14, 2007 at 5:53 AM EDT
JSE                                                                             
JSE - JSE Limited - Reviewed interim financial statements for the six months    
ended 30 June 2007                                                              
JSE Limited                                                                     
(Registration number 2005/022939/06)                                            
Incorporated in the Republic of South Africa                                    
Share Code: JSE & ISIN Code: ZAE000079711                                       
("JSE")                                                                         
REVIEWED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2007     
Revenue up 31%                                                                  
COMMENTARY                                                                      
Highlights                                                                      
South African and indeed global markets continued their strong performance      
during the first six months of 2007. The JSE's All Share Index rose to a record 
high, reaching 28 337 by 30 June 2007 (31 December 2006: 24 915). Against this  
backdrop - and supported by a continued focus on innovation and providing world-
class trading, clearing and settlement facilities - the JSE Limited (JSE)       
experienced buoyant trading conditions across its three main markets resulting  
in a 31% increase in revenue. Despite this increase, attributable profit was    
lower, primarily as a result of certain share-based expenses, which have little 
or no effect on cash flow, the details of which are dealt with under the heading
"Overview of results".                                                          
Business highlights for the period included:                                    
-    The average daily number of cash equity trades rising to 39 365 during the 
    period (2006 financial year: 32 000) with a high of 78 676 on the June 2007 
    futures close-out day;                                                      
-    The daily average number of equity derivatives contracts traded rose 200%  
    during the same period;                                                     
-    The listing of fifteen new companies during the period, eight on the Main  
    Board and seven on AltX, the JSE's exchange for small and medium size       
    companies;                                                                  
-    Launching currency futures, trading on Yield-X;                            
-    Launching of the SAVI Index, the first index monitoring volatility of JSE  
    equities (based on the Top 40 Stocks);                                      
-    Becoming the largest Single Stock Futures Market in the world in the first 
    quarter of 2007, overtaking the National Stock Exchange of India; and       
-    Issuing the final tranche of JSE shares to The JSE Empowerment Fund which  
    now holds 2% of the JSE shares and boosts the direct black shareholding on  
    the JSE to 9,62%.                                                           
Overview of results                                                             
Financials                                                                      
In the six months to 30 June 2007:                                              
*    Group revenue grew by 31% to R411,5 million (2006: R313,0 million);        
*    Group operating revenue is not directly comparable to that of the previous 
    period due to a change in the agreement between Strate and the JSE. With    
    effect from March 2006, Strate has charged the JSE for the services it      
    provides to JSE member firms. The JSE then recovers these amounts. Though   
    no net income accrues to the JSE from this process, the amounts concerned,  
    being R39,2 million in 2007 and R24,6 million in 2006 are reflected in both 
    revenue and expenses to comply with International Financial Reporting       
    Standards (IFRS);                                                           
*    Other income decreased by 68% to R13,2 million (2006: R41,7 million) mainly
    as a result of a performance bonus of R26 million received by the JSE       
    Guarantee Fund Trust from its insurance underwriters during 2006 not being  
    repeated this year;                                                         
*    Group operating expenses were 48% higher than the corresponding period last
    year at R387,0 million (2006: R261,4 million). A significant portion of     
    this increase is due to share-based costs, namely, the JSE's Broad-Based    
    Black Economic Empowerment (Broad-Based BEE) Transaction and the Long-Term  
    Staff Incentive Scheme (the Staff Scheme), which are discussed below.       
    Share-based costs can be excluded from the results for a meaningful         
    assessment of the JSE's performance:                                        
*    Personnel costs (excluding the Staff Scheme) increased 7% on the previous  
    period (see Note 8); and                                                    
*    Other operating costs (excluding the impact of the new agreement with      
    Strate and the Broad-Based BEE costs) rose 9% on the previous period (see   
    Note 9).                                                                    
*    Share-based costs also did not affect cash flow. Cash generated from       
    operations rose to R157,8 million (2006: R94,7 million);                    
*    Net financing income of R37,8 million (2006: R22,5 million) rose by 68%;   
*    The JSE's share of profit from the equity accounting of certain investees  
    and in particular Strate, added R12,1 million to the results (2006: R19,0   
    million). Though Strate's revenue rose to R110 million during the period    
    (2006: R100 million), its cost base increased to accommodate greater        
    volumes in the market, accounting for the drop in the JSE's equity          
    accounted portion;                                                          
*    A tax charge of R47,0 million. The JSE's effective tax rate for the period 
    was 54% due mainly to the costs of the Broad-Based BEE initiatives not      
    being deductible for tax purposes. The first tax assessment received by the 
    JSE as a tax-paying entity was higher than anticipated, as a consequence of 
    the interpretation of the nature of the JSE's first contract with the       
    London Stock Exchange. This is being contested.                             
The resultant attributable profit for the period, after accounting for all      
expenses, was R40,5 million, 56% lower than that for the equivalent period last 
year. The cost: income ratio rose to 96% including share-based costs. The       
exclusion of these share based costs - in order to calculate a benchmark of the 
JSE's performance - results in a cost: income ratio of 61% (2006: 64%).         
The growth in group operating revenue is driven by the increased use of all the 
services the JSE provides rather than by increased prices.                      
The biggest contributor to group revenue remains equities trading at R84,3      
million (21% of total). Revenue from equities trading rose by 29% during the    
period.  In the interim period, revenue from equity derivatives rose by 34% to  
R53,7 million; that is 13% of total first half revenue. The rapid growth of     
trades in Single Stock Futures continues to be a major factor behind growth in  
the equity derivatives market.                                                  
During the period, thirty-one companies delisted. Most of these have been       
suspended for a number of years and left the boards during the JSE's clean-up   
operation of companies which don't trade or no longer qualify to be listed. This
clean-up operation is largely complete. However two companies were delisted as a
result of private equity activity.                                              
The JSE is continuing to focus on innovating its product lines. In response to  
market demand, and with strong support from the Minister of Finance and National
Treasury, currency futures were launched in June 2007 with a rand/ dollar future
specifically aimed at retail investors. The first month of trade met the        
expectations of management.                                                     
In line with our objective of continually reducing the cost to trade on our     
markets, the JSE lowered the fees it charges for the administration of the funds
it manages on behalf of investors by 20%.                                       
Share-based expenses: Broad-Based BEE Transaction and the Staff Incentive Scheme
Two share-based expenses continued into the interim period.                     
The JSE's Broad-Based BEE Transaction consists of two elements: The JSE         
Empowerment Fund (JEF) and the Black Shareholders' Retention Scheme (BSR        
Scheme).                                                                        
JEF is designed to fund the education of black students working towards a       
tertiary level qualification in the financial markets. During the period, 434   
387 shares were issued to JEF. This resulted in a charge to the Income Statement
of R30,4 million. This completes the issue of the 1,7 million JSE shares that   
were set aside to be issued to JEF at par for cash and there will be no further 
charges in this regard.                                                         
The BSR Scheme is aimed at incentivising the JSE's black shareholders to retain 
their JSE shareholding at least until 2011. In terms of the BSR Scheme, holders 
of JSE shares who are Black and who acquired JSE shares on or before 28 March   
2006 are considered to be Qualifying Black Shareholders. Qualifying Black       
Shareholders were issued the first tranche of 579 183 options in June 2006 at a 
strike price of R4,81 an option and the second tranche of 733 395 options in    
June 2007 at a strike price of R15,17 an option. The resultant charge to the    
Income Statement was R11,7 million in 2006 and R52,6 million in 2007. The final 
tranche of options is only due to be issued during June 2008 and there will be  
no further expenses in this regard during 2007.                                 
The Staff Scheme is designed to attract, retain and incentivise the JSE's senior
management over the long term.  It is a non-dilutive cash bonus scheme based on 
the growth shown in the share price. The Staff Scheme was introduced on 1       
January 2006. Personnel expenses increased by R46,6 million during the interim  
period as a result of the valuation of the Staff Scheme as required by IFRS.    
The JSE is investigating improving its incentive scheme to make it more cost    
effective to the JSE while still serving to retain and incentivise senior       
management.                                                                     
Annual increase in emoluments: non-executive directors                          
At the JSE AGM on 24 April 2007, shareholders approved an 8% increase in certain
categories of non-executive directors' remuneration. However the base used to   
calculate the Rand increase of these fees was incorrect: the calculation was    
based on the calendar year 1 January 2006 to 31 December 2006 instead of the    
period of May 2006 to 30 April 2007. The Board implemented the 8% increase from 
1 May 2007 on the correct basis. In addition, the Board implemented an 8%       
increase on the retainer portion of the non-executive directors' remuneration.  
The difference in total cost to the JSE is not material.                        
Balance Sheet                                                                   
The JSE's balance sheet structure is conservative due to the nature of the      
business and the fact that the JSE guarantees trades on the cash equities       
market. The Board is currently evaluating the group's capital requirements given
current market conditions and the JSE's short and medium term strategic         
imperatives.                                                                    
Technology                                                                      
The JSE is party to agreements for the development of software totaling         
approximately R215,2 million (2006: R210,6 million) over the next 18 months, of 
which R154,9 million (2006: R147,3 million) has been settled. Project Orion, the
IT transformation project, is a fixed cost contract. It is currently running    
behind schedule and the JSE is in discussions with the service provider         
regarding payment of further amounts towards the fixed fee for resolution of    
scope items. The next phase of Project Orion is expected to be launched in      
November 2007.                                                                  
The JSE moved onto the London Stock Exchange's new equity trading system,       
TradElect, on 2 April 2007. TradeElect brings increased levels of performance,  
enhanced functionality and new services to the market whilst maintaining the    
JSE's record of reliability. It allows JSE customers to trade in one of the     
fastest, most reliable and technologically advanced equity markets in the world.
JSE Guarantee Fund Trust and JSE Derivatives Fidelity Fund Trust                
The JSE Guarantee Fund Trust and JSE Derivatives Fidelity Fund Trust are        
consolidated in terms of IFRS. The trusts are legally separate from the JSE and 
shareholders do not have any right to the net assets of such trusts.            
Prospects                                                                       
The JSE will continue to focus on providing world-class trading, clearing and   
settlement systems with the aim of attracting increasing issuer and investor    
activity. The group will also continue its strategy of adding to the services   
provided by the JSE so as to diversify its revenue stream and reduce the group's
exposure to any particular market segment. In particular, the JSE:              
-    Is investigating moving to a shorter settlement cycle;                     
-    Is placing much attention on attracting new companies to our markets,      
    including inward listings;                                                  
-    Will list a number of new Exchange Traded Funds which now have Financial   
    Services Board approval;                                                    
-    Is evaluating the prospects for further new and innovative products to be  
    launched on the equities, equity derivatives and Yield-X markets;           
-    Is working on new ways in which to provide our clients with greater access 
    to African and International capital markets and issuers; and               
-    Is continuing to work on implementing our planned technology upgrades.     
While the group's prospects are still largely dependent on market conditions,   
the Board is optimistic that positive trading conditions will continue in the   
second half of 2007.                                                            
These results have been reviewed but not audited by the auditors.               
For and on behalf of the Board                                                  
H J Borkum                                        R M Loubser                   
Chairman                                          Chief Executive Officer       
15 August 2007                                                                  
Condensed consolidated interim income statement                                 
for the six months ended 30 June 2007                                           
                                            JSE Group                           
                                         six months ended      year ended       
                                             30 June           31 December      
                                           2007          2006         2006      
                              Note   (reviewed)   (unaudited)    (audited)      
                                          R'000         R'000        R'000      
Revenue                        6         411 457       313 025      640 377     
Other income                   7          13 219        41 745       65 370     
Personnel expenses             8       (104 978)      (60 311)    (162 986)     
Other expenses                 9       (282 032)     (201 131)    (413 561)     
Profit before net financing               37 666        93 328      129 200     
income                                                                          
Interest received                        536 676       254 521      676 190     
Interest paid                          (498 917)     (231 999)    (621 450)     
Net financing income                      37 759        22 522       54 740     
Share of profit of equity                 12 069        18 966       27 364     
accounted investees                                                             
Profit before taxation                    87 494       134 816      211 304     
Income tax                     10       (46 961)      (42 591)     (70 254)     
Profit for the period                     40 533        92 225      141 050     
Earnings per share                                                              
Basic earnings per share       11.1         47,7         110,4        168,0     
(cents)                                                                         
Diluted earnings per share     11.2         47,5         110,4        167,5     
(cents)                                                                         
Condensed consolidated interim income statement (continued)                     
for the six months ended 30 June 2007                                           
                                     Investor Protection Funds*                 
                                        six months ended        year ended      
                                             30 June           31 December      
                                           2007          2006         2006      
                                     (reviewed)   (unaudited)    (audited)      
                                          R'000         R'000        R'000      
Revenue                                        -             -            -     
Other income                              10 236        34 924       41 743     
Personnel expenses                             -             -            -     
Other expenses                           (6 762)       (3 840)     (10 412)     
Profit before net financing income         3 474        31 084       31 331     
Interest received                          2 086         1 892        3 249     
Interest paid                                  -             -            -     
Net financing income                       2 086         1 892        3 249     
Share of profit of equity accounted            -             -            -     
investees                                                                       
Profit before taxation                     5 560        32 976       34 580     
Income tax                                     -             -            -     
Profit for the period                      5 560        32 976       34 580     
Earnings per share                                                              
Basic earnings per share (cents)             6,5          39,5         41,2     
Diluted earnings per share (cents)           6,5          39,5         41,1     
*    The JSE maintains the JSE Guarantee Fund Trust and the JSE Derivatives     
    Fidelity Fund Trust for investor protection purposes as required under the  
    Securities Services Act 36 of 2004.  The JSE is required to consolidate     
    them into the results of the Group in terms of International Financial      
    Reporting Standards ("IFRS").  However, as these Trusts are legally         
    separate from the JSE, neither the JSE nor its shareholders have any right  
    to the net assets of such Trusts.                                           
    For enhanced understanding, the investor protection funds have been shown   
    separately, although, for compliance with IFRS, these results form part of  
    the Group financial statements.                                             
Condensed consolidated interim balance sheet                                    
as at 30 June 2007                                                              
                                            JSE Group                           
                                              as at                  as at      
                                             30 June           31 December      
                                           2007          2006         2006      
                              Note   (reviewed)   (unaudited)    (audited)      
                                          R'000         R'000        R'000      
Assets                                                                          
Non-current assets                       575 869       466 886      517 316     
Property and equipment                   206 949       218 286      213 198     
Investments in equity          12         72 646        63 308       54 119     
accounted investees                                                             
Other investments                        244 481       160 107      213 923     
Deferred taxation                         51 793        25 185       36 076     
Current assets                        14 090 319     9 059 015   10 151 448     
Trade and other receivables              183 854       145 049      115 694     
Government grant                           4 285         1 256        4 285     
Due from joint venture                         -           135            -     
Derivative financial                         502         3 712        1 407     
instruments                                                                     
Margin and collateral                 13 309 016     8 433 709    9 525 198     
deposits                                                                        
Cash and cash equivalents                592 662       475 154      504 864     
                                                                                
Total assets                          14 666 188     9 525 901   10 668 764     
Equity and liabilities                                                          
Share capital and reserves               964 565       797 870      833 540     
Non-current liabilities                  157 113        87 889      107 833     
Provisions                                96 969        24 530       47 981     
Deferred taxation                         11 288        11 235       11 749     
Operating lease liability                 48 053        46 123       47 333     
Due to SAFEX members                         803         6 001          770     
Current liabilities                   13 544 510     8 640 142    9 727 391     
Trade and other payables                 205 266       151 758      148 872     
Income tax payable                         1 042        28 381       25 606     
Operating lease liability                 29 186        26 294       27 715     
Margin and collateral                 13 309 016     8 433 709    9 525 198     
deposits                                                                        
Total liabilities                     13 701 623     8 728 031    9 835 224     
Total equity and liabilities          14 666 188     9 525 901   10 668 764     
Condensed consolidated interim balance sheet (continued)                        
as at 30 June 2007                                                              
                                        Investor Protection Funds               
                                              as at                   as at     
                                             30 June                            
                                                                31 December     
                                            2007          2006         2006     
                                      (reviewed)   (unaudited)    (audited)     
                                           R'000         R'000        R'000     
Assets                                                                          
Non-current assets                        244 477       160 103      213 919    
Property and equipment                          -             -            -    
Investments in equity accounted                 -             -            -    
investees                                                                       
Other investments                         244 477       160 103      213 919    
Deferred taxation                               -             -            -    
Current assets                             21 769        54 224       26 020    
Trade and other receivables                   722        27 382        6 468    
Government grant                                -             -            -    
Due from joint venture                          -             -            -    
Derivative financial instruments                -             -            -    
Margin and collateral deposits                  -             -            -    
Cash and cash equivalents                  21 047        26 842       19 552    
                                                                                
Total assets                              266 246       214 327      239 939    
Equity and liabilities                                                          
Share capital and reserves                266 065       214 158      239 742    
Non-current liabilities                         -             -            -    
Provisions                                      -             -            -    
Deferred taxation                               -             -            -    
Operating lease liability                       -             -            -    
Due to SAFEX members                            -             -            -    
Current liabilities                           181           169          197    
Trade and other payables                      181           169          197    
Income tax payable                              -             -            -    
Operating lease liability                       -             -            -    
Margin and collateral deposits                  -             -            -    
Total liabilities                             181           169          197    
Total equity and liabilities              266 246       214 327      239 939    
Condensed consolidated interim CASH FLOW STATEMENT                              
for the six months ended 30 June 2007                                           
                                             JSE Group                          
                                         six months ended        year ended     
                                             30 June            31 December     
                                            2007          2006         2006     
                                      (reviewed)   (unaudited)    (audited)     
                                           R'000         R'000        R'000     
Cash generated/(utilised) from            157 759        94 681      223 710    
operations                                                                      
Interest received                         514 916       245 399      652 361    
Interest paid                           (474 322)     (219 186)    (584 259)    
Dividends received                          2 563             -        4 402    
Taxation paid                            (80 483)             -     (64 016)    
Net cash inflow from operating            120 433       120 894      232 198    
activities                                                                      
Cash flows from investing                                                       
activities                                                                      
Proceeds on redemption of                       -        35 000       65 000    
preference shares                                                               
Investment to maintain operations           (211)         (204)        (623)    
Replacement of property and                 (211)         (204)        (623)    
equipment                                                                       
Investment to expand operations          (19 184)      (37 098)     (79 087)    
Proceeds on maturity of other              31 857        21 364       45 168    
investments                                                                     
Additions to other investments           (33 936)      (54 794)    (102 948)    
Purchase of shares in Strate Ltd,         (6 459)             -     (12 413)    
net of dividends received                                                       
Proceeds on sale of ITRIX Holdings              -             -        1 500    
(Pty) Ltd                                                                       
Leasehold improvements                      (363)         (162)        (741)    
Additions to property and equipment      (10 283)       (3 506)      (9 653)    
                                                                                
Net cash outflow from investing          (19 395)       (2 302)     (14 710)    
activities                                                                      
Cash flows from financing                                                       
activities                                                                      
Proceeds from issue of share                   43            87          131    
capital                                                                         
Dividends paid                           (13 283)             -     (69 230)    
Net cash (outflow)/inflow from           (13 240)            87     (69 099)    
financing activities                                                            
Net increase/(decrease) in cash and        87 798       118 679      148 389    
cash equivalents                                                                
Cash and cash equivalents at              504 864       356 475      356 475    
beginning of period                                                             
Cash and cash equivalents at end of       592 662       475 154      504 864    
period                                                                          
Condensed consolidated interim CASH FLOW STATEMENT (continued)                  
for the six months ended 30 June 2007                                           
                                            Investor Protection Funds           
                                         six months ended        year ended     
                                             30 June            31 December     
                                            2007          2006         2006     
                                      (reviewed)   (unaudited)    (audited)     
                                           R'000         R'000        R'000     
Cash generated/(utilised) from            (1 075)         (418)       10 882    
operations                                                                      
Interest received                           2 086         1 891        3 249    
Interest paid                                   -             -            -    
Dividends received                          2 563             -        4 402    
Taxation paid                                   -             -            -    
Net cash inflow from operating              3 574         1 473       18 533    
activities                                                                      
Cash flows from investing                                                       
activities                                                                      
Proceeds on redemption of                       -             -            -    
preference shares                                                               
Investment to maintain operations               -             -            -    
Replacement of property and                     -             -            -    
equipment                                                                       
Investment to expand operations           (2 079)      (33 430)     (57 780)    
Proceeds on maturity of other              31 857        21 364       45 168    
investments                                                                     
Additions to other investments           (33 936)      (54 794)    (102 948)    
Purchase of shares in Strate Ltd,               -             -            -    
net of dividends received                                                       
Proceeds on sale of ITRIX Holdings              -             -            -    
(Pty) Ltd                                                                       
Leasehold improvements                          -             -            -    
Additions to property and equipment             -             -            -    
                                                                                
Net cash outflow from investing           (2 079)      (33 430)     (57 780)    
activities                                                                      
Cash flows from financing                                                       
activities                                                                      
Proceeds from issue of share                    -             -            -    
capital                                                                         
Dividends paid                                  -             -            -    
Net cash (outflow)/inflow from                  -             -            -    
financing activities                                                            
Net increase/(decrease) in cash and         1 495      (31 957)     (39 247)    
cash equivalents                                                                
Cash and cash equivalents at               19 552        58 799       58 799    
beginning of period                                                             
Cash and cash equivalents at end of        21 047        26 842       19 552    
period                                                                          
Condensed consolidated interim STATEMENT of changes in equity                   
for the six months ended 30 June 2007                                           
                                                            Non-                
                                     Share    Share   Distribut-       BBBEE    
                                                            able                
                                   Capital  Premium      Reserve     Reserve    
                                     R'000    R'000        R'000       R'000    
Group                                                                           
Balance at 31 December 2005           8 340  162 779       10 058           -   
(audited)                                                                       
BBBEE reserve                             -        -            -      29 727   
New issue of shares - The JSE            87        -            -           -   
Empowerment Fund                                                                
Income and expenses recognised            -        -            -           -   
directly in equity                                                              
    Fair value gain on available-        -        -            -           -    
for-sale instruments                                                            
Profit for the period                     -        -            -           -   
Dividends paid                            -        -            -           -   
Balance at 30 June 2006               8 427  162 779       10 058      29 727   
(unaudited)                                                                     
Balance at 31 December 2005           8 340  162 779       10 058           -   
(audited)                                                                       
BBBEE reserve                             -        -            -      50 317   
New issue of shares - The JSE           131        -            -           -   
Empowerment Fund                                                                
Income and expenses recognised            -        -            -           -   
directly in equity                                                              
    Fair value gain on available-        -        -            -           -    
for-sale instruments                                                            
Profit for the period                     -        -            -           -   
Dividends paid                            -        -            -           -   
Balance at 31 December 2006           8 471  162 779       10 058      50 317   
(audited)                                                                       
BBBEE reserve                             -        -            -      79 864   
    Shares issued - The JSE              -        -            -      30 364    
Empowerment Fund                                                                
    Options issued - Black               -        -            -      41 542    
Shareholders                                                                    
    Options lapsed - transfer to         -        -            -     (3 105)    
retained earnings                                                               
                                                                                
Replacement options issued to The         -        -            -      11 063   
JSE Empowerment Fund                                                            
New issue of shares - The JSE            43        -            -           -   
Empowerment Fund                                                                
Income and expenses recognised            -        -            -           -   
directly in equity                                                              
    Fair value gain on available-        -        -            -           -    
for-sale instruments                                                            
Profit for the period                     -        -            -           -   
Dividends paid                            -        -            -           -   
Balance at 30 June 2007 (reviewed)    8 514  162 779       10 058     130 181   
Condensed consolidated interim STATEMENT of changes in equity (continued)       
for the six months ended 30 June 2007                                           
                                                 Total                          
                                              Exchange    Investor              
                                Retained           and  Protection     Total    
                                Earnings  Subsidiaries       Funds     Group    
                                   R'000         R'000       R'000     R'000    
Group                                                                           
Balance at 31 December 2005       324 933       506 110     176 494   682 604   
(audited)                                                                       
BBBEE reserve                           -        29 727           -    29 727   
New issue of shares - The JSE           -            87           -        87   
Empowerment Fund                                                                
Income and expenses recognised          -             -       4 688     4 688   
directly in equity                                                              
    Fair value gain on                 -             -       4 688     4 688    
available-for-sale instruments                                                  
Profit for the period              59 249        59 249      32 976    92 225   
Dividends paid                   (11 461)      (11 461)           -  (11 461)   
Balance at 30 June 2006           372 721       583 712     214 158   797 870   
(unaudited)                                                                     
Balance at 31 December 2005       324 933       506 110     176 494   682 604   
(audited)                                                                       
BBBEE reserve                           -        50 317           -    50 317   
New issue of shares - The JSE           -           131           -       131   
Empowerment Fund                                                                
Income and expenses recognised          -             -      28 668    28 668   
directly in equity                                                              
    Fair value gain on                 -             -      28 668    28 668    
available-for-sale instruments                                                  
Profit for the period             106 470       106 470      34 580   141 050   
Dividends paid                   (69 230)      (69 230)           -  (69 230)   
Balance at 31 December 2006       362 173       593 798     239 742   833 540   
(audited)                                                                       
BBBEE reserve                       3 105        82 969           -    82 969   
    Shares issued - The JSE            -        30 364           -    30 364    
Empowerment Fund                                                                
    Options issued - Black             -        41 542           -    41 542    
Shareholders                                                                    
    Options lapsed - transfer      3 105             -           -         -    
to retained earnings                                                            
                                                                                
Replacement options issued to           -        11 063           -    11 063   
The JSE Empowerment Fund                                                        
New issue of shares - The JSE           -            43           -        43   
Empowerment Fund                                                                
Income and expenses recognised          -             -      20 763    20 763   
directly in equity                                                              
    Fair value gain on                 -             -      20 763    20 763    
available-for-sale instruments                                                  
Profit for the period              34 973        34 973       5 560    40 533   
Dividends paid                   (13 283)      (13 283)           -  (13 283)   
Balance at 30 June 2007           386 968       698 500     266 065   964 565   
(reviewed)                                                                      
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS                
for the six months ended 30 June 2007                                           
                                         six months ended          year ended   
                                              30 June             31 December   
                                            2007           2006          2006   
                                      (reviewed)    (unaudited)     (audited)   
                                           R'000          R'000         R'000   
1 Reporting entity                                                              
JSE Limited is a company domiciled in the Republic of South Africa. The         
condensed consolidated interim financial statements of the Company as at and    
for the six months ended 30 June 2007 comprise the company and its              
subsidiaries, consolidated investor protection funds and the Group's interest   
in associates (together referred to as the "Group").                            
                                                                                
The consolidated financial statements of the Group as at and for the year       
ended 31 December 2006 are available for inspection at the Company's            
registered office or at www.jse.co.za.                                          
2 Statement of compliance                                                       
These condensed consolidated interim financial statements have been prepared    
in accordance with International Financial Reporting Standard IAS 34, Interim   
Financial Reporting. They do not include all the information required for full  
annual financial statements and should be read in conjunction with the          
consolidated financial statements of the Group as at and for the year ended 31  
December 2006.                                                                  
                                                                                
These condensed consolidated interim financial statements were approved by the  
Board of Directors on 14 August 2007.                                           
3 Significant accounting policies                                               
The accounting policies applied by the Group in these condensed consolidated    
interim financial statements are the same as those applied by the Group in its  
annual financial statements as at and for the year ended 31 December 2006.      
4 Key estimates and areas of judgement                                          
The preparation of interim financial statements requires management to make     
judgements, estimates and assumptions that affect the application of            
accounting policies and the reported amounts of assets and liabilities, income  
and expenses. Actual results may differ from these estimates.                   
In preparing these condensed consolidated interim financial statements, the     
significant judgements made by management in applying the Group's accounting    
policies and the key sources of estimation uncertainty were the same as those   
that applied to the consolidated financial statements as at and for the year    
ended 31 December 2006.                                                         
5 Segmental information                                                         
The JSE provides exchange and auxiliary services in South Africa. The revenue   
streams derived from the services are described in Note 6 to the interim        
results. The services provided by the JSE are not subject to materially         
different operational risks and are regarded as a single business and           
geographical segment.                                                           
                                                                                
6 Revenue                                                                       
Equity derivatives fees                                                         
                                            53 698      40 235         80 148   
Agricultural derivatives fees                21 832      16 112         37 376  
Equities trading fees                        84 298      65 610        125 036  
Yield-X trading fees                            150         139            276  
Risk management, clearing and                53 675      40 668         82 300  
settlement fees                                                                 
Information sales                            38 915      28 280         61 945  
Membership fees                               3 328       2 967          6 008  
Listing fees                                 44 044      34 574         68 265  
Broker Deal Accounting services              51 926      42 457         86 057  
Funds management and other                   20 363      17 385         36 453  
Total revenue before Strate ad              372 229     288 427        583 864  
valorem fees                                                                    
Strate ad valorem fees                       39 228      24 598         56 513  
Total revenue                               411 457     313 025        640 377  
                                            13 219      41 745         65 370   
7 Other income                                                                  
The decrease in other income is as a result of a non-recurring performance      
bonus of R26,0 million received by the JSE Guarantee Fund Trust from its        
insurance underwriters during the period ended 30 June 2006.                    
8 Personnel expenses                     (104 978)     (60 311)      (162 986)  
Personnel expenses have increased primarily as a result of the valuation of     
the long-term incentive and retention scheme ("Employee Scheme") which was      
introduced with effect from 1 January 2006.  This valuation is linked to the    
JSE share price which has increased by 207.3% since the granting of the         
participation interests.  The terms and conditions of the Employee Scheme are   
disclosed in the consolidated financial statements as at and for the year       
ended 31 December 2006.  The expense recognised in the income statement is      
R46,6 million (2006: R6,0 million) for the six months ended 30 June 2007,       
resulting in a total liability of R78,0 million (2006: R6,0 million).  Based    
on Black-Scholes valuation methodology, the following assumptions were used to  
calculate the income statement impact:                                          
                                                                                
Base price for 30 days prior to 22            R8,31                             
November 2005                                                                   
30 calendar day VWAP at 30 June              R81,84                             
2007                                                                            
Total number of Participation             2 500 000                             
Interests in issue                                                              
Vesting dates:                                                                  
50% of Participation Interests vest       1 250 000                             
on 31 December 2008                                                             
25% of Participation Interests vest         625 000                             
on 31 December 2009                                                             
25% of Participation Interests vest         625 000                             
on 31 December 2010                                                             
Volatility                                   31,51%                             
Dividend yield                              0,2193%                             
Risk-free rate                                9,28%                             
                                         (282 032)    (201 131)     (413 561)   
9 Other expenses                                                                
Other operating expenses increased mainly as a result of the following:         
-    the Strate ad valorem fee of R39,2 million (2006: R24,6 million) which     
was accounted for from March 2006.                                              
-    434 387 shares were issued to The JSE Empowerment Fund (JEF) at a cost     
of R30,4 million.  This represents the final issue of the 1 737 550 JSE         
shares that were set aside to be issued to JEF at par for cash.                 
                                                                                
-    on 1 June 2007, 579 132 options, amounting to R41,5 million, were issued   
to Qualifying Black Shareholders as per the Black Shareholders'  Retention      
Scheme ("the BBBEE Scheme"). The terms and conditions of the     BBBEE Scheme   
are disclosed in the consolidated financial statements as   at and for the      
year ended 31 December 2006.  During the period, 154 263    options granted     
during 2006 lapsed and were re-issued to JEF at a cost      of R11,1 million.   
                                                                                
Based on the Black-Scholes valuation methodology, the following assumptions     
were used to calculate the impact to the income statement for the six months    
ended 30 June 2007:                                                             
Strike price                                R15,168                             
Exercise date                          15 June 2011                             
Dividend yield                                0,21%                             
Volatility                                   31,51%                             
Risk-free rate                               9,359%                             
As this transaction is equity settled, the cost of R52,6 million (2006: R11,7   
million) has been credited to the BBBEE reserve.                                
10 Income tax expense                                                           
10.1                                                                            
Taxation                                                                        
- Current tax expense                       61 480       42 978         73 287  
- Secondary tax on companies                 1 660        1 433          8 654  
- Deferred tax income movement            (15 717)        (254)       (10 637)  
- Deferred tax expense movement              (462)      (1 566)        (1 050)  
Income tax expense at end of period         46 961       42 591         70 254  
                                                                                
10.2 Reconciliation of effective                                                
tax rate                                                                        
Current tax rate                            29,00%       29,00%         29,00%  
Adjusted for:                                                                   
- Non-taxable income                      (11,05%)      (4,15%)        (6,97%)  
- Non-deductible expenses                   39,18%       10,52%         10,88%  
- Secondary tax on companies                 0,55%        0,31%          4,10%  
- Share of profit of equity                (4,00%)      (4,08%)        (3,76%)  
accounted investees                                                             
Effective tax rate                          53,68%       31,60%         33,25%  
The first tax assessment of the JSE as a tax paying entity has been received    
and is substantially higher than our estimate.                                  
This is as a result of SARS having a different interpretation of the treatment  
of our agreement with the London Stock Exchange.  The resolution of this        
difference in interpretation is being pursued.                                  
11 Earnings and headline earnings per share                                     
                                                                                
11.1 Basic earnings per share                                                   
The calculation of basic earnings per share at 30 June 2007 of 47,7 (2006:      
110,4) cents per share was based on the profit attributable to ordinary         
shareholders of R40,5 million (2006: R92,2 million) and a weighted average      
number of ordinary shares of 84 933 538 (2006: 83 521 510) during the period    
as calculated in Note 11.4.                                                     
                                           40 533       92 225        141 050   
Profit after taxation                                                           
Basic earnings per share (cents)              47,7        110,4          168,0  
11.2 Diluted earnings per share                                                 
The calculation of diluted earnings per share at 30 June 2007 of 47,5 (2006:    
110,4) cents per share was based on the profit attributable to ordinary         
shareholders of R40,5 million (2006: R92,2 million) and a weighted average      
number of diluted ordinary shares of  85 348 834 (2006: 83 536 720) during the  
period as calculated below.                                                     
                                           40 533       92 225        141 050   
Profit attributable to ordinary                                                 
shareholders (basic and diluted)                                                
Diluted earnings per share (cents)            47,5        110,4          167,5  
Weighted average number of ordinary                                             
shares (diluted):                                                               
Weighted average number of ordinary     84 933 538   83 521 510     83 934 476  
shares as at end of period                                                      
Dilutive effect of share options           415 296       15 210        276 270  
Weighted average number of ordinary     85 348 834   83 536 720     84 210 746  
shares (diluted)                                                                
                                                                                
11.3 Headline earnings per share                                                
The calculation of headline earnings per share at 30 June 2007 of 38,7 (2006:   
104,0) cents per share was based on headline earnings of R32,9 million (2006:   
R86,9 million) and a weighted average number of 84 933 538 (2006: 83 521 510)   
ordinary shares in issue during the period as calculated in Note 11.4.          
Reconciliation of headline earnings:                                            
Profit after taxation                       40 533       92 225        141 050  
Adjustments are made to the                                                     
following:                                                                      
Loss on sale of property and                     -            -              4  
equipment                                                                       
Impairment loss on property and                  -            -          3 803  
equipment                                                                       
Profit on sale of joint venture                  -            -        (1 283)  
Profit on realisation of available         (7 673)      (5 336)       (10 707)  
for-sale instruments                                                            
Headline earnings                           32 860       86 889        132 867  
Headline earnings per share (cents)           38,7        104,0          158,3  
11.4 Weighted average number of                                                 
ordinary shares:                                                                
Issued ordinary shares at 1 January     84 705 663    8 340 250      8 340 250  
Subdivision of shares on 5 June                  -   83 402 500     83 402 500  
2006: 10 for 1                                                                  
Issue of 868 775 shares - The JSE                -      119 010        492 703  
Empowerment Fund - 7 June 2006                                                  
Issue of 434 388 shares - The JSE                -            -         39 273  
Empowerment Fund - 28 November 2006                                             
Issue of 434 387 shares - The JSE          227 875            -              -  
Empowerment Fund - 27 March 2007                                                
Weighted average number of ordinary     84 933 538   83 521 510     83 934 476  
shares                                                                          
11.5 Effect of earnings and net asset value per share of Investor Protection    
Funds                                                                           
The JSE maintains the JSE Guarantee Fund Trust and the JSE Derivatives          
Fidelity Fund Trust for investor protection purposes as required under the      
Securities Services Act.  The JSE is required to consolidate these funds into   
the results of the Group in terms of International Financial Reporting          
Standards.  However, as these Trusts are legally separate from the JSE,         
neither the JSE nor its shareholders have any right to the net assets of such   
Trusts.                                                                         
                                                                                
The contribution these funds make to the headline earnings and                  
the net asset value of the Group are as follows:                                
Headline (loss)/earnings per share           (2,5)         33,1           28,4  
(cents)                                                                         
Diluted earnings per share (cents)             6,5         39,5           41,1  
Net asset value per share (cents)            312,5        254,1          283,0  
12 Investment in equity accounted investees                                     
With effect from 31 January 2007, 173 additional shares were purchased in       
Strate Limited resulting in an increase in shareholding from 42,77% to 44,55%.  
The cost of the acquisition was R12,4 million.  A dividend of R6,0 million was  
received from Strate Limited on 29 June 2007.                                   
                                                                                
13 Share capital                                                                
Shares in issue                                                                 
Shares in issue at 1 January            84 705 663    8 340 250      8 340 250  
10 for 1 share subdivision                       -   83 402 500     83 402 500  
New shares - The JSE Empowerment                 -      868 775        868 775  
Fund first tranche                                                              
New shares - The JSE Empowerment                 -            -        434 388  
Fund second tranche                                                             
New shares - The JSE Empowerment           434 387            -              -  
Fund third tranche                                                              
Shares in issue - fully paid, after     85 140 050   84 271 275     84 705 663  
subdivision                                                                     
                                                                                
14 BBBEE reserve                                                                
The reserve comprises:                                                          
- The JSE Empowerment Fund                  69 025       18 071         38 661  
- Black Shareholders' Retention             61 156       11 656         11 656  
Scheme                                                                          
                                          130 181       29 727         50 317   
Refer to Note 9 for details                                                     
                                                                                
15 Dividends                                                                    
A dividend of 15,6 cents per share was approved by shareholders at the Annual   
General Meeting held on 9 May 2007, which dividend was paid on 14 May 2007.     
The total dividend paid was R13,3 million.                                      
16 Contingent liabilities and Commitments                                       
16.1 Contingent liabilities                                                     
16.1.1 The JSE has a contingent liability as a result of the JSE guaranteeing   
the settlement of central order book equity market trades in the event that     
one member fails to settle.  This risk is mitigated through various             
mechanisms, being the member firms' deposits and bank guarantees, the JSE       
Guarantee Fund Trust and the JSE's own trade monitoring system.  The JSE        
retains cash reserves to meet these contingent liabilities.                     
16.1.2 The JSE is currently engaged in arbitration with a former supplier for   
alleged breach of contract by the JSE.  The case was split between merits and   
quantum.  The JSE lost on merits and the quantum has not yet been established.  
The JSE expects the quantum to fall in the range Rnil to R25,0 million.         
16.1.3 The JSE is one of 25 defendants who have been served with a summons      
relating to losses realised by a pension fund in the amount of approximately    
R1,4 billion.  This is in the early stages of the legal process and an          
exception has been filed by the JSE.  Senior Counsel opinion on this matter is  
that the claim is unfounded.  The JSE is defending the claim.                   
                                                                                
16.2 Commitments                                                                
16.2.1 The JSE leases a building and accounts for the lease as an operating     
lease. The lease commenced on 1 September 2000 for a period of 15 years. On     
termination of the lease, should the landlord wish to sell the building, the    
JSE has the first right of refusal to buy the building at a price yet to be     
determined. The operating lease payments escalate at 11% per annum.             
Total future minimum lease payments under non-cancellable operating lease:      
Not later than one year                     29 186       26 294         27 715  
Between one and five years                 144 836      134 106        139 381  
Later than five years                      157 327      197 242        177 620  
                                          331 349      357 642        344 716   
16.2.2 The JSE is party to agreements for the development of software           
totalling approximately R215,2 million (2006: R210,6 million) over the next     
year, of which R154,9 million (2006: R147,3 million) has been settled.          
                                                                                
17 Related parties                                                              
17.1 Identity of related parties                                                
The JSE is the main provider of risk management, clearing and settlement, and   
accounting systems to equity member firms (many of whom are shareholders).      
Revenue earned from this source, and from providing trading and market data to  
member firms, amounted to R232,3 million (2006: R204,6 million) for the         
period.  These transactions are conducted on an arm's length basis.             
Provision for doubtful debts in respect of related parties as at 30 June 2007   
was Rnil (2006: Rnil).                                                          
The associated companies, subsidiaries and joint ventures of the Group are      
identified as follows:                                                          
                                                    Amounts due from/(due to)   
- Associated companies:                                                         
Strate Limited1                            (8 590)            -              -  
Satrix Managers (Pty) Limited                  665          181             52  
- Subsidiaries:                                                                 
SAFEX Clearing Company (Pty)                 3 135        1 695          2 339  
Limited                                                                         
JSE Trustees (Pty) Limited                   3 904        3 581          2 995  
JSE Guarantee Fund Trust                         -        (230)            (1)  
- Joint Venture                                                                 
ITRIX Holdings (Pty) Limited                     -          135              -  
Strate Limited invoices the JSE for a service fee in respect of settlement      
which the JSE recovers from the members.                                        
Normal trading terms apply to the amounts due to the JSE.                       
Executive directors' and other key executives' remuneration of R5,5 million     
(2006: R5,3 million) and R7,9 million (2006: R7,6 million) respectively was     
paid during the period.                                                         
17.2 Material related party transactions                                        
Strate ad valorem fees - see Note 6                                             
Amounts due to and from related parties - see Note 17.1                         
Directors' emoluments and other key personnel - see Note 17.1                   
The JSE provides secretarial services to the Group entities for no              
consideration.                                                                  
KPMG Inc., the company's independent auditor, has reviewed the interim          
financial statements contained in this interim report and has expressed an      
unmodified conclusion on the interim financial statements.  Their review        
report is available for inspection at the company's registered office.          
                                                                                
                                                                                
                                                                                
                                                                                
                                                                                
Executive directors:                                                            
RM Loubser (CEO), NF Newton-King, LV Parsons, JH Burke, G Rothschild            
Non-executive directors:                                                        
HJ Borkum (Chairman), AD Botha, MR Johnston, ST Koseff, W Luhabe, A Mazwai, SN  
Nematswerani, N Payne, GT Serobe                                                
Alternate directors:                                                            
DM Lawrence                                                                     
Company secretary:                                                              
GC Clarke                                                                       
These results are available on our website on:                                  
www.jse.co.za                                                                   
14 August 2007                                                                  
Date: 14/08/2007 15:26:02 Produced by the JSE SENS Department.