9M2019 Financial Results29 October 2019

Agenda• Key Financial Highlights & Market Performance

• Financial Review

• Highlights & Conclusion

• Appendices

2

Key Financial Highlights & Market Performance• Financial Highlights for 9M2019

• 9 Months Financial Trend

• Securities Market Overview

• Derivatives Market Overview

• Islamic Capital Market Overview3

4

Financial Highlights for 9M2019

Operating revenue declined mainly due to lower Securities and Derivatives trading

revenue.

Cost to income ratio increased to 48% while ROE decreased by 5 percentage points to

23%.

9M2019 vs. 9M2018:

Financial Items 9M2019

9M2019

vs.

9M2018

3Q2019

3Q2019

vs.

3Q2018

Operating Revenue (RM million) 357.5 11.1% 117.5 4.6%

Operating Expenses (RM million) 180.3 2.1% 57.7 5.0%

PATAMI (RM million) 140.3 18.5% 47.1 6.2%

EPS (sen) 17.4 18.3% 5.8 6.5%

Cost to Income Ratio (%) 48%4 percentage

points47%

Annualised ROE (%) 23%5 percentage

points 23%

1 percentage

point

5

9 Months Financial TrendDecrease in PATAMI resulting from lower Securities and

Derivatives trading revenue

Operating Revenue

(RM mil)

PATAMI

(RM mil)Cost to Income

Ratio (%)ROE (%)

335.9 351.6 362.5 360.2

392.1 402.3

357.5

139.2 145.1 148.0 143.5 167.8

172.2

140.3

9M2013 9M2014 9M2015 9M2016 9M2017 9M2018 9M2019

45 46 46 4744 44

48

2326 26

2427 28

23

6

Securities Market OverviewGlobal and domestic developments continue to influence market performance

34 28

1,835

1,674

9M2018 9M2019

8.8%

Average Daily Value (“ADV”)

(OMT)(RM mil)Market Capitalisation (RM bil) Fund Raised from New Listings

& Secondary Market (RM bil)

1,314

909

569

476

674

595

9M2018 9M2019

2,557

1,980

Velocity (%)

1,793

1,584

FBMKLCI

0.6

1.8

4.52.5

9M2018 9M2019

No. of New Listing (including LEAP

Market)

Fund raised from new listings

Fund raised from secondary market

ADV of Domestic Institutions

ADV of Retail

ADV of Foreign Institutions Market Capitalisation

1623

15.7%

22.6%

4.3

5.1

7

ADC - Crude Palm Oil Futures

Volatility of Crude Palm Oil

Prices

Derivatives Market OverviewFCPO affected by low CPO prices and FKLI influenced by the lower

FBMKLCI volatility

ADC - OthersADC – FBMKLCI Futures

Volatility of FBMKLCI

Average Daily Contracts (“ADC”)

& VolatilityOpen Interest (No. of Contract)

10,417 9,075

43,644 41,500

1,718

2,069

9M2018 9M2019

14%17%

9% 7%

78%

19%

79%

17%

5.6%

52,64455,779

4%

28 Aug

2018

317,788

1 Sept 2010

111,548

30 Sep

2019

234,06219 Aug

2019

200,757

3%

8

Islamic Capital Market OverviewContinued improvement in ADV with 47% growth YoY

No. of Shariah Compliant Stocks (%)No. of Trading Participants

Bursa Suq Al-Sila’ (“BSAS”) ADV (RM bil) Market Capitalisation of Shariah Compliant Stocks (RM bil)

Market Capitalisation of Shariah

Compliant StocksDomestic Foreign

15.5

25.7

6.0

5.8

9M2018 9M2019

21.5

31.5

46.7%

160

211

1,1441,078

30 SEPT 2018 30 SEPT 2019

5.8%

76% 76%

Financial Review• Financial Snapshot

• Operating Revenue

• Operating Expenses

9

10

123.2 117.5

402.3

357.5

3Q2018 3Q2019 9M2018 9M2019

11.1%

Financial SnapshotPerformance influenced by global and domestic developments

Operating revenue (RM mil) Operating expenses (RM mil)

PATAMI (RM mil) Cost to income ratio (%)

4.6%

60.757.7

184.2 180.3

3Q2018 3Q2019 9M2018 9M2019

5.0%

47 47

44

48

3Q2018 3Q2019 9M2018 9M2019

4 percentage

points

2.1%

50.2 47.1

172.2

140.3

3Q2018 3Q2019 9M2018 9M2019

6.2%

18.5%

11

Operating RevenueDecline mainly due to lower Securities and Derivatives trading revenue

Decrease in Securities Trading Revenue due to lower institutional and retail trades.

Decrease in Derivatives Trading Revenue due to lower number of FCPO and FKLI

contracts traded as a result of low CPO prices and lower FBMKLCI volatility

respectively.

Higher BSAS Trading Revenue due to higher ADV from domestic trades.

Decrease in listing and issuer services mainly due to lower listing fees as a result of

the amortisation of initial listing fees effective January 2019 (RM2.0m was

deferred) as well as lower perusal and processing fee.

Higher Market Data due to higher number of subscribers.

(RM mil)

Total

RM357.5mil

Total

RM402.3 milGrowth contribution by revenue streams:

402.3

357.5

9M2018 9M2019

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

Market Data

Member Services & Connectivity

BSAS Trading Revenue

Conference Fee & Exhibition

Related Income

207.7173.6

57.6

51.7

10.8

11.1

45.2

39.7

31.8

31.5

27.3

28.7

16.4

16.2

5.5

5.0

9M2018 9M2019

11.1%

-34.1

-5.9 +0.3 -5.5-0.3 +1.4 -0.2 -0.5

16.4%10.1% 2.7% 12.2% 1.1% 5.1% 1.1% 9.2%

12

Total

RM184.2 milTotal

RM180.3 mil

Operating ExpensesDecrease by 2% in 9M2019

Note^ - Other operating expenses include building maintenance, administrative expenses and CDS expenses.

Decrease in staff cost due to lower provision of variable costs.

Lower Globex fees from lower number of derivatives contracts traded.

Increase in marketing & development due to higher business development and

engagement activities.

Staff costs

Depreciation & amortisation

Marketing & development

IT maintenance

Service fees

Other operating expenses^

106.4 101.4

16.515.4

7.710.4

14.2 15.1

15.4 14.7

24.023.3

9M2018 9M2019

2.1%

(RM mil)

Movement of expenses:

184.2

180.3

9M2018 9M2019

4.7%7.0% 35.2%

6.4% 4.1%2.9%

-5.0

-1.1+2.7

+0.9 -0.7 -0.7

13

Corporate Development Highlights

On 18 September 2019, Bursa Malaysia Berhad (“Bursa”) announced that Bursa will be acquiring theremaining 25% equity interest in Bursa Malaysia Derivatives Berhad, consequent to an exercise of aput option by CME Group Inc.

Net assets per share reduced by 17 sen from 31 December 2018 due to thefollowing:

1) Recognition of the put option value of RM162,471,000 payable to CMEGroup Strategic Investments LLC and a provision of RM2,182,000 for theestimated Additional Sum in other payables.

2) The transactions are treated as an acquisition and the non-controllinginterest of RM15,994,000 is derecognised.

3) Accounted for as an equity transaction with the owners of the Companywhere the difference between the put option price including theestimated Additional Sum and the derecognised non-controlling interestof RM148,659,000 is offset against the retained earnings of the Group.

This acquisition is expected to be completed by early December 2019.

Impact to

Net Assets

Highlights & Conclusion• Highlights of 9M2019 Initiatives

• Moving Forward

14

15

Highlights of 9M2019 Initiatives

Bursa and Securities Commission to continue supporting a facilitative and market-friendly ecosystem

Revamped and liberalised its Derivatives market rules and directives to enhance business efficiency and flexibility of doing business

Strengthening the Core

Launched Bursa Anywhere mobile application

Launched T+2 Settlement Cycle to improve operational efficiency and reduce systemic risk

Embarked on a securities borrowing and lending (SBL) Proof-of-Concept (POC)

Expanded trading features such as “Market Order at Pre-Closing”, “On-Open/Close Order”, “Iceberg Order” and “One-Cancel-Other Order”to provide more opportunities for participants

Capitalising on Technology & Information

Held the 15th edition of Invest Malaysia Kuala Lumpur

Organised the 30th Annual Global Palm and Lauric Oils Price Outlook Conference

Regional and Global Connectivity

Hosted the 5th Annual “Ring the Bell for Gender Equality”

Launched “Seminar: Wanita dan Pelaburan” in conjunction with “Hari Wanita 2019”, in collaboration with National Council of Women’s Organisation Malaysia (NCWO)

Sustainability as a way of Life

Classification of Bursa as a Shariah-compliant securities

Bursa extended agreement to host its Derivatives products on CME and will be acquiring the remaining 25% equity interest in Bursa Malaysia Derivatives

Corporate Development

16

Moving Forward

SECURITIES MARKET

• The Securities Market performance in third quarter of 2019 continued to be influenced by both global and domestic

developments such as heightened risk of global economic slowdown, easing of global financing conditions and

weaker corporate earnings. These developments coupled with the uncertainties over the US-China trade

negotiations saw the total trading value continue to decline in the third quarter of 2019.

• Despite the external headwinds, the recently announced Malaysian Budget 2020 with expansionary measures are

expected to provide support to the market and focus in achieving sustainable economic growth.

DERIVATIVES MARKET

• Trading and hedging activities will continue to be influenced by volatility in crude palm oil prices and the

underlying equities market.

• The derivatives trading community is expected to be further expanded through the ongoing initiatives focusing on

the Greater China region. Furthermore, the Exchange expects increased retail demand through the continuous

retail investor engagement and education program.

ISLAMIC CAPITAL MARKET

• The Exchange expects to see increased participation by institutional investors on Bursa Malaysia-i, with several

institutional funds having already commenced trading on the platform.

• Bursa Suq Al-Sila’ (“BSAS”) is expected to sustain its performance through expansion of its global reach and

onboarding of new domestic non-banks and cooperatives onto its platform, despite competitive pricing by its

competitors.

The Exchange will continue to expand and strengthen its products and services offerings to drive trading activities, as

well as attract new investors and participants into the markets. On 14 August 2019, the Exchange revamped the rules

and directives of Bursa Malaysia Derivatives Berhad and Bursa Malaysia Derivatives Clearing Berhad to enhance

business efficiency and flexibility of conducting business amongst trading and clearing participants. Taking into

consideration the performance to date and the continued challenging environment, the Exchange expects to register

a satisfactory performance in the fourth quarter of 2019.

Appendices• Securities Market Trading Activity

• Securities Market Trading Participation

• Securities Market Foreign Ownership

• Foreign Inflow/Outflow

• Derivatives Market Activity

• Derivatives Market Demography

• Islamic Capital Market Activity17

18

1,841

1,439 1,595

1,430 1,643

2,308

2,002

1,686

2,068 2,053 2,196

1,901 2,081

1,913 1,933 2,042 1,981

1,842 1,740 1,690

2,378

2,621

1,951

2,316

2,716 2,730

2,226

1,912 2,069 2,022

1,855

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

34

27 2825

28 3731

25

30 29 3028

3028 29 30 29

27 26 25

34 35

26

31 3537

3027

30 2927

34 33 3328 30 29 30 27

32 3228

1,129 1,454

1,699 1,573 1,915

2,053 1,991 1,812

2,314 2,392

1,980

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19

Turnover Velocity (%)

Quarterly ADV Traded & Velocity

Average Daily Value Traded (RM mil)

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

Annual ADV Traded & Velocity

Securities Market Trading Activity

19

369 392

442

354

424

530 464

372

525 538 476

67 73 74 77 78 74 77 79 77 78 76

33 27 26 23 22 26 23 21 23 22 24

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

9M

19

73 73 74 74 74 76 73 73 78 73 70

27 27 26 26 26 24 27 27 22 27 30

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

9M

19

For 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based

on Bursa’s internal system.

Retail

(%)

Institution

(%)Local(%)

Foreign(%)

Retail ADVTraded (RM mil)

Foreign ADV

Traded (RM mil)

Retail vs. Institution Foreign vs. Local

Securities Market Trading Participation

323 392 437 404

507 492 544

491 506

647 600

20

Securities Market Foreign Ownership

22.3

23.1

24.4

24.0

24.3

22.8

22.3

22.9

23.423.6

24.224.1

24.1

23.9

23.523.623.6

23.4

23.723.4

23.523.5

23.7

23.4

23.223.1

23.2

23.022.9

Based on Market Capitalisation (%)

21

-10,000

-5,000

0

5,000

10,000

2016

TNFO: RM3.2 bil

2014

TNFO: RM6.9 bil

2015

TNFO: RM19.7 bil

TNFI: Total Net Foreign Inflow

(RM mil)

TNFO: Total Net Foreign Outflow

Foreign Inflow/Outflow

Monthly foreign inflow/outflow from 2014 to 2019

66

-1,415

-719

-1,022

1,026

-816

-1,557-1,411

-2,041

135

-79

-2,599

-559

-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

500

1,000

1,500Monthly foreign inflow/outflow from Sept 2018 to Sept 2019(RM mil)

2017

TNFI: RM10.8 bil

9M2019

TNFO: RM7.9 bil

2018

TNFO: RM11.7 bil

22

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

9M

19

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

16%

174

146

172

214

196

213

204196

218

239

288

196

207

229 235

230

283

293

226237

262263

261

295

283

290

306

245

274

247

234

40

Quarterly Average Daily Contracts (’000)

31

42

60

Total Annual Contract (mil)

Crude Palm Oil FuturesOthersOpen Interest (’000)

17%

79%

6.1 6.2

8.4

9.6

FBMKLCI Futures

`

`

80

%

44 4542

46

42

10.7

50

12.5

44

54

Derivatives Market Activity

55

14.2

62

51

62

56

14.0

5856

62

55

14.1

57 5754

123132

152

214

196196

230

237

295

245

234

53

13.7

56 56`

`

4%

4%

58

47

9.551

59

23

20 21 19 15 18 20 18 14 11 14 13

5244

42

2828 24

23

1918

2519

3

22

21 2

5

33

3

2

2633

37

55 53 54 55

6468

5866

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19

(%)FKLI

36 34 34 36 33 34 31 2823

18 17

2726 24 19

17 1515

1620

24 24

1

11

1 11

1 1 1 1

17

1513

12

10 15 2121 23

2016

1925 28

3239

35 32 34 3337

42

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19

(%)FCPO

Local

Domestic Retail

Domestic

Institutions

Foreign Institutions Local

Domestic RetailDomestic

Institutions

Foreign Institutions Foreign Retail

Derivatives Market Demography

24

1.6 2.75.5

13.5 13.4 15.118.1

25.7

0.7 1.21.4

1.72.9

4.5

6.2

5.8

2012 2013 2014 2015 2016 2017 2018 9M19

BSAS Annual Average Daily Value

Local ADV Foreign ADV

2.33.9 6.9

15.2 16.319.6

24.3

31.5(RM bil)

BSAS ADV (RM bil)

13.5

1.3 1.5 1.6 1.8 2.6 2.4 2.7 3.2 3.7 3.7 5.9

8.5 10.4 12.0

14.4 16.9 16.1 12.7 12.2 12.6 13.6

15.1 15.5 16.1 16.2 14.3 15.9

25.7 26.3 27.2

23.9

0.3 0.7 0.9 1.2 1.1 1.0 1.1 1.5 1.4 1.5 1.4

1.4 1.5

1.6 1.6

2.1 2.6

2.7 3.0 3.2 3.8

3.7 4.9 5.6 6.4 5.9

5.7

6.8 5.3 5.5

6.5

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

BSAS Quarterly Average Daily Value(RM bil)

Islamic Capital Market Activity

DISCLAIMER:

These presentation slides are owned by Bursa Malaysia Berhad and/or the Bursa Malaysia group of companies (“Bursa Malaysia”). Whilst Bursa Malaysia endeavors to

ensure that the contents in this presentation are accurate, complete, current and have been obtained from sources believed by Bursa Malaysia to be accurate and

reliable, neither Bursa Malaysia or the presenter of this presentation 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 Bursa Malaysia be liable for any claim, however arising, out of or in relation

to this presentation.

This document shall be used solely for the purpose it was circulated to you. This document is owned by Bursa Malaysia Berhad and/or the Bursa Malaysia group of

companies (“Bursa Malaysia”). No part of the document is to be produced or transmitted in any form or by any means, electronic or mechanical, including

photocopying, recording or any information storage and retrieval system, without permission in writing from Bursa Malaysia.

Copyright Bursa Malaysia Berhad 2019 (30632-P)

25

RASMONA ABDUL RAHMAN

rasmona@bursamalaysia.com

603-2034 7175

E-mail : ir@bursamalaysia.com

RAFIDAH AZIZ

rafidahaziz@bursamalaysia.com

603-2034 7262

ADAM ISKANDAR AHMAD ZAHAR

adamiskandar@bursamalaysia.com

603-2034 7351

INVESTOR RELATIONS CONTACT INFORMATION