INTERIM RESULTS PRESENTATION 2012 Nicky

Transcript:INTERIM RESULTS PRESENTATION 2012 Nicky:
INTERIM RESULTS PRESENTATION 2012 Nicky Newton-King, CEO August 2012 H1 SYNOPSIS Difficult first half slows revenue growth Globally Enormous upheaval in financial services industry Slow economic growth in many regions worldwide Globally, exchanges under pressure as volumes drop At the JSE Low operating revenue growth despite Increase in number of trades but following reduction in equity trading revenue Volume growth in most other JSE markets Good data revenue growth JSE response Strong cost control and decision on legacy platforms Investment in sustainable growth areas 2 TAKING THE PAIN SRP impairment knocks results Technical advice: desirable to completely rewrite 1 of 5 components of SRP Board has accepted advice Results in impairment to SRP of R72.6m Impact of impairment on H1 results Carrying value of SRP at end 2011 – R158.0m Impairment in H1 2012 - R72.6m Remaining aspects of SRP allocated to appropriate projects Surveillance – R54.0m T+3 – R22.8m PSP II – R7.6m Cost previously capitalised, expensed while review done – approx R23.9m (2011: R36.1m) 48 people to be rolled off Retained portion of 2011 bonus – impact R7.3m Forfeited completely by 2011 Execs Forfeited in part by other JSE staff 3 H1 ACHIEVEMENTS Progress on key initiatives Completed data centre & disaster recovery site Implemented the new equity trading system and SENS on time and on budget New system moved to Johannesburg from London Implemented Point of Presence in London for access by international clients Upgraded the commodities and derivatives market technology Relooked at pricing in most products Way forward found on securities transfer tax In conjunction with National Treasury and market participants Made significant progress on ensuring that clearing, settlement and risk management services will meet CPSS-IOSCO standards Also that JSE clients obtain maximum Basel 3 relief 4 OPERATIONS REVENUE BREAKDOWN Listings and Equity Market slip; rest of Group still growing 6 All percentages in document calculated on unrounded numbers ISSUER REGULATION Revenue fell by 5% to R46.1m (H1 2011: R48.8m) Continuing trend of few new company listings Decline in volume of corporate actions Issuance during period 3 companies listed during period (H1 2011: 5) 8 companies delisted (H1 2011: 8) 6 exchange traded products listed (H1 2011: 4) 3 transfers from AltX to Main Board (H1 2011: 4) H1 focus Business development activity Amended requirements for publication in print media 7 EQUITY MARKET Revenue down 7% to R161.2m (H1 2011: R172.6m), driven by Slower equity transaction