UNLOCKING THE POTENTIAL

OF OUR MARKETPLACE

1H 2015 Financial Results

Analyst Briefing

15 July 2015

Dato’ Tajuddin Atan

Chief Executive officer

Rosidah Baharom

Director, Corporate Services

2

AGENDA

FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE

FINANCIAL REVIEW

FOCUS AREA AND CONCLUSION

APPENDICES

3

ROBUSTGROWTH

FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE

Financial Highlights

Half Yearly Financial Trend

Securities Market Overview

Derivatives Market Overview

Islamic Market Overview

EXTRACTING

VALUE

4

Financial Highlights for 1H2015Improved performance despite global & domestic market challenges

Growth in operating revenue attributed to solid performance from Derivatives and Islamic Markets, while

the costs remain steady.

Interim dividend of 16.5 sen is equivalent to 91% payout and the payment date will be on 12 August 2015.

Financial Items 1H2015 1H2014

1H2015

vs.

1H2014

Operating Revenue (RM million) 240.4 230.6 4.3%

Operating Expenses (RM million) 117.8 117.6 0.2%

PATAMI (RM million) 96.5 92.0 4.9%

EPS (sen) 18.1 17.3 4.8%

Cost to Income Ratio (%) 46% 48% 2 percentage points

Annualised ROE (%) 25% 23% 2 percentage points

Dividends (sen):

Interim

Special

16.5

-

16.0

20.0

1H2015 vs.1H2014:

13 14

18

16

18 17

21

19

23

27

25

55 55

50 52

48 50

45

52

48

44 46

158 174

200 181

197 191

224 216 231

241 240

55 57 77

67 78 72

93 80

92 106

97

1H2010 2H2010 1H2011 2H2011 1H2012 2H2012 1H2013 2H2013 1H2014 2H2014 1H2015

5

Half Yearly Financial TrendContinuous strong Operating Revenue and ROE performance

Operating Revenue

(RM mil)

PATAMI

(RM mil)

Cost to Income

Ratio (%)

ROE (%)

1,882.71

1,706.64

1,770

1,659

30 Jun 2014 30 Jun 2015

6

Securities Market OverviewLower ADV due to lower retail participation

Average Daily Value (OMT)

(RM mil)

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

Secondary Market (RM bil)

Velocity (%)

FBMKLCI

4.7

2.9

13.5

8.1

1H 2014 1H 2015

No. of New Listing

65

39.6%

Fund raised from new listings

Fund raised from secondary market

ADV of Domestic Institutions

ADV of Retail

ADV of Foreign Institutions

1,038 1,008

509443

513 543

1H 2014 1H 2015

3029

3.2%

2,0601,994

6.3%

18.2

11.0

1,712

Market Capitalisation

8.86 10.42

37.46

44.65

1H 2014 1H 2015

15%18%

5%

14%

7

Derivatives Market OverviewContinuous growth in FCPO and FKLI contracts

Average Daily Contracts (’000) and Volatility

Crude Palm Oil FuturesFBMKLCI Futures Others

Volatility of FBMKLCI Volatility of Crude Palm Oil Prices

Open Interest

1/9/10

111,548

26/7/13

258,001

30/6/15

228,787

4/9/14

319,476

1%

46.97

80%

19%

81%

19%

55.31

17.8%

30 June 2015

1,088

30 Jun 2014

74 74

24.9 20.8

12.8 14.2

30 June 2014 30 June 2015

3.7

11.3

1.4

1.5

1H 2014 1H 2015

83

106

8

% of Shari’ah Compliant StocksNo. of Trading Participants

Market Capitalisation of Shari’ah

Compliant Stocks (RM bil)

No. of Sukuk

Value of Listed Sukuk (USD$ bil)

20 21

7.2% 6.0%

1,023

Domestic

149.4%

Bursa Suq Al-Sila’ ADV

(RM bil)

1.5

Market Capitalisation of Shari’ah

Compliant Stocks

Foreign

5.1

12.8

Islamic Market OverviewGrowth driven by the conversion of bank deposits to Murabaha, and

introduction of Tenor Based Pricing

9

STRENGTHENEDMARKETPLACE

Financial Review

Financial Snapshot

Operating Revenue

Operating Expenses

Dividends

SUSTAINABILITY

& GOVERNANCEFORGING THE WAY

10

46.9

49.5

92.0

96.5

2Q2014 2Q2015 1H2014 1H2015

115.5120.7

230.6240.4

2Q2014 2Q2015 1H2014 1H2015

4.9%

4.3%

4.5%

57.4 57.5

117.6 117.8

2Q2014 2Q2015 1H2014 1H2015

0.3%

Financial SnapshotFinancial performance trending in the right direction

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

PATAMI (RM mil)

5.6%47

45

48

46

2Q2014 2Q2015 1H2014 1H2015

Cost-to-income (%)

2 percentage

points

0.2%

2 percentage

points

116.4 115.9

33.2 40.0

3.77.5

27.325.8

17.918.7

14.816.211.110.4

6.25.9

1H2014 1H2015

11

Total

RM240.4 mil

4.3 %

Total

RM230.6 mil

Operating RevenueHigher Trading Revenue by Derivatives & Islamic – BSAS Markets

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

Market Data

Membership Services & Connectivity

BSAS Trading Revenue

Other Operating Revenue*

Note * - Other operating revenue mainly consists of conference & expo income.

(RM mil)

Growth contribution by revenue:

240.4-1.5-0.7 -0.3

230.6 -0.5

+6.8

+3.8 +0.8

+1.4

1H2014 1H2015

0.4%

4.6%9.3%

5.4%

6.1% 5.3%

20.4%

101.0%

Derivatives trading revenue increased as a result of the higher average

daily contracts traded of 55,314 contracts in 1H2015 compared to 46,966

in 1H2014.

BSAS trading revenue increased due to higher conversion of deposits to

Murabaha, and the introduction of Tenor Based Pricing.

Listing and issuer services revenue decreased resulting from the absence of

larger IPOs, lower number of IPOs and lower corporate exercises in 1H2015.

Market data revenue increased due to higher number of subscribers.

117.8-1.2

-1.1

-0.4

117.6

+0.1

+2.3

+0.5

1H2014 1H2015

12

65.1 63.9

12.8 11.7

7.0 7.1

9.2 8.8

8.5 10.8

15.0 15.5

1H2014 1H2015

Total

RM117.6 mil

Total

RM117.8 mil

0.2%

(RM mil)

Operating ExpensesCosts remained fairly stable

Movement of expenses:

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

1.8%

1.4%8.8%4.9% 28.1%

3.1%

Staff costs

Depreciation & amortisation

Marketing & development

IT maintenance

Service fees

Other operating expenses^

Staff costs declined due to lower headcount compared to 1H2014.

Depreciation and amortisation was lower following the retirement of the

Derivatives Order Management System in 2014.

Service fees increased as a result of an increase in Derivatives trading

volume in 1H2015.

9.513.0 13.5 16.0 16.0 16.5

16.0 18.0

10.5

13.0 13.5

20.020.0

2010 2011 2012 2013 2014 2015

Payout

95%

6.6

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

YTL P

OW

ER

MALAYAN

BAN

KIN

G

YTL C

ORP B

HD

BRIT

SH

AM

ERIC

AN

TO

BACCO

KLCCP S

TAPLED

GR

FELD

A G

LO

BAL V

EN

TU

RES

DIG

I.CO

M B

HD

AM

BAN

K H

LD

G B

HD

MAXIS

BH

D

SIM

E D

ARBY

IOI CO

RP B

HD

UM

W H

LD

G B

HD

TELEKO

M M

ALAYSIA

PETRO

NAS D

AG

AN

GAN

AXIA

TA G

RO

UP B

HD

HO

NG

LEO

NG

BAN

K

ASTRO

MALAYSIA

PU

BLIC

BAN

K B

HD

CIM

B G

RO

UP

PETRO

NAS G

AS B

HD

KU

ALA L

UM

PU

R K

EPO

NG

PETRO

NAS C

HEM

ICAL

HO

NG

LEO

NG

FIN

AN

TEN

AG

A N

ASIO

NAL B

HD

GEN

TIN

G M

ALAYSIA

BH

D

PPB G

RO

UP B

ERH

AD

BU

MI ARM

AD

A B

HD

MIS

C B

HD

SAPU

RAKEN

CAN

A

RH

B C

APIT

AL B

HD

GEN

TIN

G B

HD

IHH

HEALTH

CARE B

BU

RSA M

ALAYSIA

Dividend Yield – Bursa vs. FBMKLCI Constituents

@ 30 June 2015

13Source: Bloomberg and Bursa Malaysia

* Exclude special dividends

Special Dividend (sen)

Interim Dividend (sen)

Final Dividend (sen)

Payout

94%

Payout

95%

Payout

98% *

Payout

92% *

DividendsHigh payout to shareholders

Payout

91%

FOCUS AREA AND CONCLUSION

14

STRONGER

COLLABORATION

Highlights of 1H2015 Initiatives

Focus Areas

Moving Forward

BUILDING

CAPABILITIES

15

Highlights of 1H2015 Initiatives

Create a More

Facilitative TRADING

ENVIRONMENT

SI 1

REGIONAL MARKETPLACE

with Global Access

(Centre of ASEAN)

SI 4 Obtained US CFTC approval to attract US-based

commodity traders into our Derivatives Market via direct

market access

e-Services

New Bursa Link

Online listing enquiry service

CelebsTraders - Learning how to invest and follow the

celebs trading journey

Facilitate More

TRADABLE ALTERNATIVES

SI 2 New ETF – MyETF MSCI SEA Islamic Dvidend

New call and put warrants over the FTSE China A50

Index

Signed Sustainable Stock Exchanges’ commitment to

promote sustainable performance

Amended Listing Requirements to enhance market quality

Reshape

MARKET STRUCTURE &

FRAMEWORK

SI 3

16

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

Focus Areas

Create a More

Facilitative

TRADING

ENVIRONMENT

Reshape

MARKET

STRUCTURE &

FRAMEWORK

SI

1

Facilitate More

TRADABLE

ALTERNATIVES

SI

2

SI

3

REGIONAL

MARKETPLACE

with Global Access

(Centre of ASEAN)

SI

4

17

Moving Forward

Securities Market

Trading activities are expected to be challenging as the FBM KLCI remains soft with pressure

building up on the weakening of Ringgit and expectation of lower corporate earnings.

However, will be cushioned by ample domestic liquidity. We will continue to focus on our

outreach activities as well as the ability to provide diversified and investable products to

existing and potential investors.

Derivatives Market

FCPO is expected to trade more actively with the demand and supply of CPO to be impacted

by the B10 biodiesel regime being promoted by the Ministry of Plantation, Industries &

Commodities, coupled with the hot El Nino weather pattern. The uncertainty in the FBM KLCI

is expected to lead to higher activities in FKLI. The Derivatives Market is expected to benefit

from the volatility of both palm oil prices and the FBM KLCI.

Islamic Market

The introduction of tenor based pricing and the full implementation of Islamic Financial

Services Act 2013 are expected to underpin the demand for Murabaha products and hence,

deepen the usage of Bursa Suq Al-Sila' in the domestic market. Islamic Market is expected to

sustain its performance.

UNLOCKING THE POTENTIAL

OF OUR MARKETPLACE

1H 2015 Financial Results

Analyst Briefing

15 July 2015

Q &A

19

www.bursamalaysia.com

AppendicesAPPENDICES

23

48

36

2835

2831

3742

3034

2734

27 2825

28

3731

2530 29 30 28 30 28

2023

34 3225

32

53

34 34 33 3328 30 29 29

350 472 748 874

718 1,019

2,179

1,181 1,129 1,454

1,699 1,573 1,915 2,053 1,994

-

400

800

1,200

1,600

2,000

2,400

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H 2015

RM mil

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 2,002

1,686

2,068 2,053 2,196

1,901 2,081

1,913

-

400

800

1,200

1,600

2,000

2,400

2,800

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 3Q 13 4Q 13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

RM mil

Turnover Velocity (%)

20

Quarterly ADV Traded & Velocity

Average Daily Value Traded (OMT, RM mil)

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

Annual ADV Traded & Velocity

Securities Market Trading Activity

66 63

7667

73 74 77 7874

78

34 37 24 33 27 26 23 22 26 22

2006 2007 2008 2009 2010 2011 2012 2013 2014 1H 2015

21

65 6358

73 73 74 74 74 7672

35 37 42 27 27 26 26 26 24 28

2006 2007 2008 2009 2010 2011 2012 2013 2014 1H 2015

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

357

806

496

323392 437 404

507 492550

346

806

283 369 392 442

354424

530443

22.177.9

26.2

21.3

20.4 21.9

22.7 23.9

23.5

23.2

23.1

23.0

23.1

23.4

23.4

23.4

23.6

23.5

23.5

23.6

23.8

23.6

23.6

23.6

23.6

23.2

22.9

2007

2008

2009

2010

2011

2012

2013

Jan-1

4

Feb-1

4

Mar-

14

Apr-

14

May-1

4

11…

Jul-

14

Aug-1

4

Sep-1

4

Oct-

14

Nov-1

4

Dec-1

4

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

May-1

5

Jun-1

5

22

Foreign Ownership by Nationality (%)Based on Market Capitalisation

(as at month end)

(%)

Singapore

Hong Kong

UK

Foreign Nominees

China

Taiwan

USA

Mid-East

5.1

0.9

1.9

0.6

0.8

0.1

0.1

Others 12.6

Securities Market Foreign Ownership

23

Foreign Inflow / Outflow

504

-277

191

-1,501

-499 -302

-2,940-2,432

-408 -542

151

-2,545

-3,175-4,000

-3,000

-2,000

-1,000

0

1,000

Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15

Monthly Foreign Inflow/outflow from June 2014 to June 2015 (RM mil)

TNFI: Total Net Foreign Inflow TNFO: Total Net Foreign Outflow

-8000

-6000

-4000

-2000

0

2000

4000

6000

Monthly Foreign Inflow/outflow from October 2009 to June 2015

2010

TNFI: RM15 bil

2011

TNFI: RM2.0 bil

2012

TNFI: RM13.6 bil2013

TNFI: RM2.6 bil

2014

TNFO: RM6.9 bil

TNFI: Total Net Foreign Inflow TNFO: Total Net Foreign Outflow

1H 2015

TNFO: RM9.0 bil

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

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

117

142

123

129115

114

132136

162171

152

174

146

172

214

196213

204

196

218

239

288

196

207

229

25

66

85

159

125

156

123 132152

214196 196

229

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1H

2015

Quarterly (Average Daily Contracts ’000)

23

28

24

50

24

Total Annual Contract (Mil)

Crude Palm Oil FuturesOthersOpen Interest (’000)

19%

81%

2.6 2.5

4.2

6.2 6.1 6.1 6.2

8.4

FMBKLCI Futures

20%

29

`

`

79%

2422

3732

3435

31

404244

9.6

45

10.7

42

46

Derivatives Market Activity

42

12.5

44

54 55

60

51

1%

6.7

25

31 19 14 16 16 13 15 15 20 21 19 17 18 20 18

45

48

45 43 4040 41 46

52 44 42 25 28 24 22

3

6

53

32

22

3

22

21 2

4

1423

3137 40

45 4237

2633 37

56 53 54 56

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 1H2015

(%)FKLI

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

15 2126 24 23

27

34 38

27 26 24 1917 15 15

4

64

3 2 1 11

11

1 1 1

27

21 1820 22 25 22

15 1715

13 1210 15 18

14 14 17 20 18 16 18 20 1925 28 32

39 35 33

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 1H2015

(%)FCPO

Local

Domestic Retail

Domestic Institutions

Foreign Institutions Local

Domestic RetailDomestic Institutions

Foreign Institutions Foreign Retail

June –

Dec

2012

June -

Dec

2012

Derivatives Market Demography

26

Islamic Market Trading Activity

RM Mil

55 77 177 274 354 515 819 875 1,087 1,068 1,297 1,501 1,559

1,841

2,562 2,368 2,743

3,205 3,679 3,677

5,867

8,478

10,374

12,046

128 231 237 207 347 252

665 898

1,152

1,086 1,033

1,047

1,463 1,421

1,458

1,376

1,391

1,500

1,552

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

BSAS Average Daily Value

Local ADVForeign ADV

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

E-mail : ir@bursamalaysia.com

Fax : 603-2732 6160

RASMONA ABDUL RAHMAN

rasmona@bursamalaysia.com

603-2034 7175

ADRINA CHE AHMAD

adrina@bursamalaysia.com

603-2034 7488

NURHAFIZAWATI HANAFFI

nurhafizawati@bursamalaysia.com

603-2034 7484

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