1H 2013 Financial Results

18 July 2013

Welcome to Our

Analyst & Media Briefing

Dato’ Tajuddin Atan Chief Executive Officer

Nadzirah Abdul Rashid Director, Corporate Services

AGENDA:

KEY HIGHLIGHTS

MARKET PERFORMANCE

STRATEGY

FINANCIAL REVIEW

CONCLUSION

APPENDICES

EXPANDING INFLUENCE

KEY HIGHLIGHTS :

1H13 vs. 1H12 Financial Highlights 4

Profit & ROE Trend 5

1H13 vs. 1H12 Financial Highlights Excellent performance from both the securities and derivatives markets

4

Higher Operating Revenue and PATAMI due to:

Jump in securities market post GE13.

Greater foreign participation in derivatives market led to higher ADC.

Interim dividend of 16 sen and special dividend of 20 sen.

Annualised ROE

EPS PATAMI Operating Revenue

Cost to Income Ratio

Dividend per Share

RM223.9m RM93.0m 17.5 sen 45% 21%

19% 19% 14%

36 sen

7% 167% 13 %

54.8 54.7 50.1 52.1 48.3 44.8

157.7

173.6

200.4

181.1

197.2 191.2

223.9

55.0 56.9

76.5 66.6

78.3 72.2

93.0

1H2010 2H2010 1H2011 2H2011 1H2012 2H2012 1H2013

13.2 13.6 18.0 15.7 18.4 21.0

Operating Revenue

(RM mil)

ROE (%) PATAMI

(RM mil)

Cost to Income

Ratio (%)

Profit & ROE Trend Positive trending on all key indicators

5

50.3

16.8

MARKET PERFORMANCE :

FUELLING GROWTH

Securities Market Overview 7

Derivatives Market Overview 8

Islamic Market Overview 9

1,738 1,596

2,064

1H 2012 2H 2012 1H 2013

1,368

1,466 1,599

30 June 2012

31 Dec 2012

30 June 2013

30 26

33

13.87

17.86

10.43

1H 2012 2H 2012 1H 2013

Average Daily Value (OMT+DBT)

(RM mil)

Velocity (%) FBMKLCI No. of New Listing

Market Capitalisation (RM bil) Fund Raised from New Listings &

Secondary Market (RM bil)

1,599.15

1,688.95

Securities Market Overview Market capitalisation and FBMKLCI reached new heights

8 9

7

19% 17%

7

-25%

1,773.54

1H 2012 2H 2012 1H 2013

Crude Palm Oil Futures FMBKLCI Futures

Derivatives Market Overview Foreign Participation increased to 42% from 34%

Average Daily Contracts (000’)

Others

35.85

21%

73%

26%

Open Interest since Migration to Globex®

1/9/10

96,678

28/2/12

199,215

31/12/12

214,065 30/6/13

212,879

8

81%

19%

73%

27%

42.90 43.36

1H 2012 2H 2012 1H 2013

818 813 800

864

1H 2012 2H 2012 1H 2013

61 69 72

1H 2012 2H 2012 1H 2013

13%

18 20 19

Sukuk Listing (USD$ bil)

No. of Sukuk

Bursa Suq Al-Sila’ ADV

Commodity Traded

(RM bil)

1.87

No. of Trading Participants

88%

29.3

Total Market Capitalisation of

Shari’ah Compliant Stocks (RM bil)

Islamic Market Overview BSAS ADV trending up

9

33.7 33.0 2.73

3.52

942

1,008

17%

No. of Shari’ah Compliant Stocks

SEEDING IDEAS

STRATEGY :

Focus Area in 2013 and Beyond 11

2013 Business Plans 12 -13

Focus Area in 2013 and Beyond To establish strong regional presence

LEVERAGE ON

ASEAN

GROWTH

LEVERAGE ON

DOMESTIC

LIQUIDITY

IMPROVING

MICROSTRUCTURE

Focus 1: Value Extraction Focus 2: Build for the Future

REVIEW

MACRO-

STRUCTURE

REVIEW

MARKET

FRAMEWORK

DEVELOP REGIONAL

PRESENCE &

NEW BUSINESS

11

Create a More

Facilitative TRADING

ENVIRONMENT

Facilitate More

TRADABLE

ALTERNATIVES

Reshape

MARKET STRUCTURE

& FRAMEWORK

REGIONAL

MARKETPLACE

with Global Access

(Centre of ASEAN)

2013 Business Plans Major initiatives to build a competitive marketplace

E-Rights

Establishment of

futures-only branch

offices

Widening coverage of

RSS & SBL

Retail Strategy

BTS Replacement

ETBS

Stapled Securities

framework

Business Trusts

framework

New ETFs

New Derivatives

Products

Revamped of Business

Rules for Securities

Brokers

NLT for derivatives

options

Establishment of CMTF

Liberalisation of

Derivatives market

membership structure

PLCs profiling

ASEAN Exchanges

SI 1 SI 2 SI 3 SI 4

Note : SI-Strategic Intent

12

2013 Business Plans Major initiatives to build a competitive marketplace

13

1Q 13

E-Rights

ETBS

Revamped of Business Rules for Securities Brokers

NLT for derivatives options

PLCs profiling

2Q 13

Stapled Securities framework

Business Trust Framework

Establishment of futures-only branch offices

2H 13

Widening coverage of RSS & SBL

Retail Strategy

BTS Replacement

New ETFs

New Derivatives Products

Liberalisation of Derivatives market membership structure

FINANCIAL REVIEW :

Financial Snapshot 15

Operating Revenue 16

Operating Expenses 17

Growing Dividends 18

BUILDING CAPITAL

Financial Snapshot Strong financial performance

15

49.1 48.3

2Q 2012 2Q 2013 1H 2012 1H 2013

Cost to income ratio (%)

37.7

78.3

2Q 2012 2Q 2013 1H 2012 1H 2013

PATAMI (RM mil)

96.7

197.2

2Q 2012 2Q 2013 1H 2012 1H 2013

Operating revenue (RM mil)

45%

19%

17% 7%

122.2

223.9

13%

26%

93.0

54.8

2Q 2012 2Q 2013 1H 2012 1H 2013

Operating expenses (RM mil)

2% 108.0

51.8 53.1

103.9

4%

44.8 40.7

93.0 109.0

29.6

35.9 26.4

25.0 17.3

18.5 11.3

12.9 12.6

14.3 7.0

8.3

1H 2012 1H 2013

Operating Revenue Boosted by post GE rally

Total

RM223.9 mil

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

13%

Market Data

Membership Services & Connectivity

Other Operating Revenue

197.2

197.2

213.2 218.1 218.1

219.3 220.9 222.5

223.9

16.0

6.3 -1.4 1.2 1.6

1.7 1.3

1H 2012 1H 2013

Growth contribution by revenue streams:

(RM mil)

18% 14%

13%

7% 5%

16

Commentaries

Total

RM197.2 mil

17%

21%

• Jump in securities trading revenue due to investor relief following

GE13.

i. 54% jump in overall ADV

ii. 116% jump in retail ADV

iii. 42% jump in foreign ADV

• Higher derivatives trading revenue due to improved foreign

participation and higher FKLI trades led by pre and post GE

sentiment.

103.9 108.0

5.8 0.8 -0.4

0.6

1.4 - 4.1

1H 2012 1H 2013

Movement of expenses:

Commentaries

Operating Expenses Investing in sustainability

49.4 55.2

16.7 17.5

5.4 5.0 7.8 8.4 6.0

7.4 18.6

14.5

1H 2012 1H 2013

Total

RM103.9 mil

Total

RM108.0 mil

4%

Staff costs

Depreciation & amortisation

Marketing & development

IT maintenance

Service fees

Other operating expenses

(RM mil)

23% 8% 7%

5%

22%

17

12%

• Higher staff cost as efforts to build capabilities and capacity

continue.

• Higher volume based service fee in line with increase in derivatives

contracts.

12.2 9.5 13.0 13.5

16.0

5.9 10.5

13.0 13.5

20.0

2009 2010 2011 2012 1H 2013

Payout

95%

Growing Dividends With special dividend of 20 sen, total shareholders’ return = 31%

Payout

93%

Payout

94%

Final Dividend (sen)

Interim Dividend (sen)

Payout

92% *

Payout

91%

18

Special Dividend (sen)

* Excludes special dividends

EXPANDING INFLUENCE

CONCLUSION :

Conclusion 20

20

This is Bursa Malaysia’s best quarter in terms of our financial results since the

2007 rally, benefited from GE13 and recorded growth in all markets.

Malaysia’s market fundamentals are strong and our performance post-GE13

bears testament to the strength of our market.

Bursa Malaysia will continue to:

Extract values from Bursa Malaysia’s own initiatives and government’s ETP

and GTP.

Improve business efficiency and effectiveness.

provide a more facilitative trading environment through the upgrading

systems and infrastructure as well as stakeholder engagement.

Conclusion

1H 2013 Financial

Results Briefing 18 July 2013

Thank you

Q & A

www.bursamalaysia.com

APPENDICES : Positive Foreign Inflows 23

Increasing Weight in MSCI 24

High Yielding Stock 25

Securities Market Trading Activity 26

Securities Market Trading Participation 27

Securities Market Foreign Ownership 28

Derivatives Market Activity 29

Derivatives Market Demography 30

(RM bil)

(4)

(3)

(2)

(1)

-

1

2

3

4

5

6

Jan-1

2

Feb-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-

12

Aug-1

2

Sep-1

2

Oct-

12

Nov-1

2

Dec-1

2

Jan-1

3

Feb-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Foreign Net Purchases/Sales

Positive Foreign Inflows Foreign investors were net buyers for most months

Net Purchases Net Sales

23

Increasing Weight in MSCI Malaysia’s weight in the MSCI Asia Pacific Ex Japan Index is on the rise

24

April 2011

2.9%

April 2012

3.4%

July 2013

3.9%

High Yielding Stock One of the highest dividend yield PLCs among FBM KLCI constituents

3.6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Tele

kom

Mala

ysi

a B

hd

Mala

yan B

ankin

g B

hd

Petr

onas

Dagangan

Axia

ta G

roup B

hd

Dig

i.Com

Bhd

Maxis

Bhd

Bri

tish

Am

eri

can T

obacco

Sim

e D

arb

y

Petr

onas

Chem

icals

Gro

up

Feld

a G

lobal Ventu

res

Hong L

eong B

ank

Tenaga N

asi

onal Bhd

Kuala

Lum

pur

Kepong

Public B

ank

IOI Corp

Bhd

CIM

B

AM

MB H

old

ing B

hd

RH

B C

apit

al

Hong L

eong F

inancia

l G

roups

Petr

onas

Gas

Bhd

Genti

ng M

ala

ysi

a B

hd

UM

W H

old

ing B

hd

YTL P

ow

er

Ast

ro

YTL C

orp

Bhd

PPB G

roup

Bum

i Arm

ada B

hd

Genti

ng B

erh

ad

BU

RSA M

ALAYSIA

Source: Bloomberg 25

1.23%

2.04%

2.17%

2.96%

3.09%

3.16%

3.30%

3.38%

3.61%

4.60%

Selected Regional Markets – Dividend Yield

@ 30 June 2013

Australia

(AS30)

Bursa (FBM

KLCI)

China

(SHASHR)

Hong Kong

(HSI)

Indonesia

(JCI)

Philippines

(PCOMP)

Singapore

(FSSTI)

South Korea

(KOSPI)

Taiwan

(TWSE)

Thailand

(SET)

Dividend Yield – Bursa vs. FBMKLCI Constituents

@ 30 June 2013

1,924

497

805 911

350 472

748 874

718

1,019

2,179

1,181

1,129 1,454

1,699 1,573 1,989

-

400

800

1,200

1,600

2,000

2,400

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H 2013

RM mil

57

31

40 39

20 23

34 32

25

32

53

34 34 33 33 28

33

2,610

2,303 2,069

1,751 1,907

1,187

823 854 615

1,490 1,266

1,099 1,435 1,209

1,387

1,793

2,161

1,579 1,732

1,341

1,841

1,439 1,595

1,430 1,643

2,308

-

400

800

1,200

1,600

2,000

2,400

2,800

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13

RM mil

68

54 50 41

46

31 25

32 23

48

36 28

35 28 31

37 42

30 34

27 34

27 28 25 28 37

Securities Market Trading Activity

Quarterly ADV Traded & Velocity

Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)

Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)

Annual ADV Traded & Velocity

26

65 63 58

73 73 74 74 71

35 37 42 27 27 26 26 29

2006 2007 2008 2009 2010 2011 2012 1H 2013

66 63

76 67

73 74 77 80

34 37 24 33 27 26 23 20

2006 2007 2008 2009 2010 2011 2012 1H 2013

357

806

496

323 392 437 404

570

346

806

283 369 392 442

354 390

From 2006 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based on Bursa’s

internal system.

Retail

(%)

Institutions

(%) Local

(%)

Foreign (%) Retail ADV

Traded (RM mil)

Foreign ADV

Traded (RM mil)

Retail vs Institutions Foreign vs Local

Securities Market Trading Participation

27

22.9 77.1

Securities Market Foreign Ownership

Singapore

Hong Kong

UK

Foreign Ownership by Nationality (%)

Foreign Nominees

Based on Market Capitalisation

(as at month end)

20.4

20.6

20.8

21.8

21.9

22.0

21.7

22.1

22.2

22.7

22.4

23.0

23.3

23.7

23.9

24.0

24.1

24.3

24.8

25.2

24.7

(%)

China/Taiwan

USA

Mid-East

Others

5.7

1.6

2.2

1.2

0.2

0.1

11.9

28

2004

2005

2006

2007

2008

2009

2010

2011

2012

1H

2013

117

142

123 129

115 114

132 136

162

171

152

174

146

172

214

196

213

66

85

159

125

156

123 132

152

214 213

2Q

09

3Q

09

4Q

09

1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

3Q

11

4Q

11

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

29

Total Annual Contract (Million)

FBMKLCI Futures

Crude Palm Oil Futures

Others

Open Interest (000’)

Quarterly (Average Daily Contracts 000’)

FMBKLCI Futures

Crude Palm Oil Futures

Others

Open Interest (000’)

27%

73%

2.6 2.5

4.2

6.2 6.1 6.1 6.2

8.4

30%

29

`

`

69%

24 22

24 23

25 28

37

32 34

35

31

40

42 44

Derivatives Market Activity

9.6

45

29

5.2

42

Derivatives Market Demography

* Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC

and has the right to trade for himself - all futures contracts listed on the Derivatives Exchange.

31 19 14 16 16 13 15 15 20 21 19 17 20

45

48 45 43 40

40 41 46 52 44 42 25

32

3

6

5 3

3 2

2 2

3

2 2

2

1

14 23

31 37 40

45 42 37

26 33 37

56 47

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2013

(%) FKLI

40 38 35 33 35 31 25 27 36 34 34 36 33

15 21 26 24 23

27

34 38

27 26 24 19 17

4

6 4 3 2 1 1

1 1

1 1

27

21 18 20 22 25 22

15 17 15

13 12 10

14 14 17 20 18 16 18 20 19 25 28 32

39

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2013

(%) FCPO

Local

Domestic Retail

Domestic Institutions

Foreign Institutions Local

Domestic Retail Domestic Institutions

Foreign Institutions Foreign Retail

June –

Dec

2012

June -

Dec

2012

30

www.bursamalaysia.com

KOAY LEAN LEE

koayll@bursamalaysia.com

603-2034 7306

Disclaimer :

Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this Presentation.

Whilst the Company endeavours to ensure that the contents in the presentation booklet are accurate, complete or have been obtained from

sources believed by the Company to be accurate and reliable, neither the Company nor the Presenter make any warranty, express or implied,

nor assume any legal liability or responsibility for the accuracy, completeness or currency of the contents of this Presentation.

In no event shall the Company be liable for any claim, howsoever arising, out of or in relation to this presentation booklet to the recipient of

this presentation booklet and/or to any other third party.

© Bursa Malaysia 2013

INVESTOR RELATIONS CONTACT INFORMATION

E-mail : ir@bursamalaysia.com

Fax : 603-2732 6160

MUHAMMAD ALI

muhammad@bursamalaysia.com

603-2034 7673

LIM SIEW CHING

limsiewching@bursamalaysia.com

603-2034 7277

NURHAFIZAWATI HANAFFI

nurhafizawati@bursamalaysia.com

603-2034 7484