FY2017 Financial Results

Analyst & Media Briefing

5 February 2018

Datuk Seri Tajuddin AtanChief Executive Officer

Rosidah BaharomChief Financial Officer

2

Agenda

Key Financial Highlights & Market Performance

Financial Review

Highlights & Conclusion

Appendices

3

Key Financial Highlights & Market Performance

Financial Highlights

Financial Trends

Securities Market Overview

Derivatives Market Overview

Islamic Capital Market Overview

Dividends

4

Financial HighlightsGood financial results driven by better performance in Securities Market

Operating revenue increased due to higher Securities Trading, Listing and Issuer Services and

Depository Services revenue. The increase was partially offset by lower revenue from Derivatives and

Islamic Capital Markets.

Cost to income ratio and ROE both improved by 2 and 3 percentage points to 45% and 26%

respectively.

Second interim dividend of 18.5 sen, equivalent to 93% payout to be paid on 5th March 2018.

2017 vs. 2016:

Financial Items 2017

2017

vs.

2016

4Q2017

4Q2017

vs.

4Q2016

Operating Revenue (RM million) 522.1 10.4% 130.0 15.5%

Operating Expenses (RM million) 250.4 6.0% 66.4 21.3%

PATAMI (RM million) 223.0 15.2% 55.3 10.2%

EPS (sen) 41.5 14.6% 10.3 9.6%

Cost to Income Ratio 45%2 percentage

points 47%

3 percentage

points

Annualised ROE 26%3 percentage

points 27%

3 percentage

points

5

Financial TrendsRecorded highest operating revenue since listing

Operating Revenue

(RM mil)

PATAMI

(RM mil)Cost to Income

Ratio (%)ROE (%)

331

382 389

440 471

488 473

522

112 143 151

173 198 199 194

223

2010 2011 2012 2013 2014 2015 2016 2017

13

17 18

21

25 26

23

26

55

51 49 48

46 46 47

45

6

Securities Market OverviewHigher trades as market sentiments improved

2732

1,667

1,907

31 DEC 2016 31 DEC 2017

14.4%

Average Daily Value (“ADV”)

(OMT)(RM mil)

Market Capitalisation (RM bil) Fund Raised from New Listings

& Secondary Market (RM bil)

956

1,291

371

525485

498

2016 2017

1,812

2,314

Velocity (%)

1,642

1,797

FBMKLCI

0.6

7.4

12.2

14.5

2016 2017

No. of New Listing

Fund raised from new listings

Fund raised from secondary market

ADV of Domestic Institutions

ADV of Retail

ADV of Foreign Institutions Market Capitalisation

11

13

71.1%

27.7%

21.9

12.8

7

ADC - Crude Palm Oil Futures

Volatility of Crude Palm Oil

Prices

Derivatives Market Overview6% growth in FCPO contracts Y-o-Y

ADC - OthersADC – FBMKLCI Futures

Volatility of FBMKLCI

Average Daily Contracts (“ADC”)

& VolatilityOpen Interest (No. of Contract)

11,183 8,371

46,406 49,051

241 255

2016 2017

22%19%

9%6%

80%

19%

85%

15%

0.3%

57,67757,829

1%

29 Nov

2017

308,084

29 Dec

2017

294,856

1 Sept 2010

111,548

26 May

2016

337,267

8

Islamic Capital Market OverviewBSAS ADV improved with introduction of volume-based pricing scheme

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)

No. of Sukuk

Value of Listed Sukuk (USD bil)

Domestic Foreign Market Capitalisation of Shariah

Compliant Stocks

Domestic Foreign

13.4 15.1

2.9

4.5

2016 2017

16.3

19.6

20.2%

124

141

23.9 25.4

29.630.6

31 DEC 2016 31 DEC 2017

53.556.0

23

25

4.7%1,031

1,154

31 DEC 2016 31 DEC 2017

11.9%

74%76%

9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Sim

e D

arb

y

Mala

yan B

ankin

g

Bri

tish

Am

eri

can T

obacco

KLC

CP S

taple

d G

roup

DiG

i.C

om

Tenaga N

asi

onal

West

port

s H

old

ings

CIM

B G

roup H

old

ings

AM

MB H

old

ings

HA

P S

eng C

onso

lidate

d

Tele

kom

Mala

ysi

a

Petr

onas

Gas

Ast

ro M

ala

ysi

a H

old

ings

Maxis

YT

L C

orp

Petr

onas

Dagangan

Petr

onas

Chem

icals

Gro

up

MIS

C

Public B

ank

Hong L

eong B

ank

IJM

Corp

RH

B B

ank

Hong L

eong F

inancia

l G

roup

IOI C

orp

Kuala

Lum

pur

Kepong

Genti

ng M

ala

ysi

a

PPB G

roup

Axia

ta G

roup

Genti

ng

IHH

Healt

hcare

BU

RSA

MA

LA

YSIA

Dividend Yield (annualised) – Bursa vs. FBMKLCI Constituents

@ 29 Dec 2017

3.6

Source: Bloomberg and Bursa Malaysia

16.0 16.0 16.5 17.0 20.0

16.0 18.0 18.0 17.018.5

20.020.0

15.0

2013 2014 2015 2016 2017

Payout

98% *

Special Dividend (sen)2nd Interim Dividend

(sen)

* Exclude special dividend

Payout

94%

Payout

92% *

Payout

93%

Declared second interim dividend of 18.5 sen. The entitlement and payment dates are on 21st February and 5th

March 2018 respectively.

1st Interim Dividend

(sen)

DividendsTotal dividend of 53.5 sen was declared

%

Payout

93%*

10

Financial Review

Financial Snapshot

Operating Revenue

Operating Expenses

11

112.5 130.0

472.7522.1

4Q2016 4Q2017 2016 2017

10.4%

Financial SnapshotImproved performance in 2017 results

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

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

15.5%

54.866.4

236.2250.4

4Q2016 4Q2017 2016 2017

21.3%

44

47 47

45

4Q2016 4Q2017 2016 2017

3 percentage

points

6.0%

2 percentage

points

50.2 55.3

193.6

223.0

4Q2016 4Q2017 2016 2017

10.2%

15.2%

12

Operating RevenueGrowth from both trading & non-trading revenue

Increase in Securities Trading Revenue from higher ADV-OMT.

Higher Listing & Issuer Services due to larger IPOs and higher number of structured

warrants and corporate exercises.

Lower Derivatives Trading Revenue due to revision in guarantee fee and lower

number of FKLI contracts traded.

Lower BSAS Trading Revenue despite growth in its ADV due to volume discount

incentives given.

(RM mil)

Total

RM522.1 mil

Total

RM472.7 milGrowth contribution by revenue streams:

472.7 21.9%

9.2%3.7% 15.4%

8.6% 2.2% 1.9% 4.4% 522.1

+46.7 -8.1

-0.6+8.3

+3.4 -0.8 +0.4 +0.1

2016 2017

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

Market Data

Member Services & Connectivity

BSAS Trading Revenue

Conference Fee & Exhibition Related Income

212.9259.6

88.7

80.616.4

15.853.5

61.839.0

42.435.3

34.521.0

21.4

5.9

6.0

2016 2017

10.4%

13

Total

RM236.2 milTotal

RM250.4 mil

Operating ExpensesHigher cost in line with growth in Operating Revenue

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

Higher staff cost due to salary increment and higher provision for variable staff

costs.

Higher marketing and development expenses incurred as more marketing and

engagement activities were carried out this year.

Increase in IT maintenance from new and renewal of maintenance contracts.

Increase in service fees due to higher exchange rate.

Staff costs

Depreciation & amortisation

Marketing & development

IT maintenance

Service fees

Other operating expenses^

128.6 137.5

24.223.8

10.011.417.319.6

22.1

23.4

34.0

34.7

2016 2017

6.0%

(RM mil)

Movement of expenses:

236.2

250.4

+8.9 -0.4+1.4

+2.3

+0.7

2016 2017

+1.3

7.0%

1.8% 14.2%

12.9%

5.9%

2.1%

14

Highlights & Conclusion

Highlights of 2017 Initiatives

Moving Forward

15

Highlights of 2017 Initiatives

Create a More Facilitative

TRADING ENVIRONMENT

SI 1

REGIONAL MARKETPLACE

with Global Access

(Centre of ASEAN)

Revised Tick Rule on Regulated Short Selling and Securities Borrowing and Lending –

Negotiated Transactions Failed Trade Proposal Frameworks

Organised inaugural Shariah Investing Forum 2017

Launched Green Lane Policy incentive to the top 30 listed companies for good

corporate governance and disclosure practices

Bursa Malaysia Derivatives implements settlement via RENTAS

Hosted inaugural Shariah Investing Fair 2017

Facilitate More

TRADABLE ALTERNATIVES

New Listing Requirements and various amended rules for the Leading Entrepreneur

Accelerator Platform Market

Launched the Leading Entrepreneur Accelerator Platform (LEAP) Market for SMEs

and sophisticated investors

Launched Real Estate Investment Trust Index

Launched Islamic Securities Selling and Buying Negotiated Transaction (ISSBNT)

framework

Launched Tradeplus Shariah Gold Tracker ETF

Introduced new trading features to enhance flexibility in trading strategies

Launched The Mid and Small Cap Research Scheme with an inaugural batch of 100

mid and small-cap public listed companies

Revamped the participantship structure for Bursa Malaysia Derivatives Clearing

Berhad

Reshape

MARKET STRUCTURE &

FRAMEWORK

SI 2

SI 3

SI 4

Signed MoU with the Shanghai Stock Exchange to explore potential ways to improve

visibility and accessibility to market participants in Malaysia and China

16

Moving Forward

SECURITIES MARKET• The Securities Market segment is expected to remain resilient, given the recent economic data and

equity market performance, strengthening of the Ringgit and expected positive corporate earnings.

• Trading volatilities however, may be influenced by local and external factors, such as geopolitical

developments and the tightening of monetary policies in major economies in 2018.

DERIVATIVES MARKET• Volatility in commodity prices and the underlying equity market will continue to affect hedging and

trading activities of the FCPO and FKLI contracts.

ISLAMIC CAPITAL MARKET• The introduction of Islamic Securities Selling and Buying – Negotiated Transaction, the world’s first

Shariah-compliant alternative to Securities, Borrowing and Lending, will complement the efforts to

promote Shariah-compliant investing on Bursa Malaysia-i platform as well as to add vibrancy to the

market.

• Bursa Suq Al-Sila’, on the other hand, will continue its reach into new regions in 2018.

Bursa Malaysia will continue with its initiatives to enhance the breadth and depth of the ecosystem,

amongst others, through the digitalisation of services, liberalisation of rules framework and greater

diversification of the investor base to ensure that the Malaysian equity and derivatives markets are

attractive and vibrant.

17

2017 Financial Results Analyst & Media Briefing

Q&A

18

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 Activity

19

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 1,933 2,042 1,981

1,842 1,740 1,690

2,378

2,621

1,951

2,316

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

35

2831

3742

3034

27

34

27 2825

28

3731

2530 29 30 28 30 28 29 30 29 27 26 25

34 35

2631

53

34 34 33 3328 30 29 30 27

32

2,179

1,181 1,129 1,454

1,699 1,573 1,915

2,053 1,991 1,812

2,314

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Turnover Velocity (%)

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

20

806

283 369 392

442 354

424 530

464 372

525

63

7667

73 74 77 7874 77 79 77

37 24 33 27 26 23 22 26 23 21 23

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

6358

73 73 74 74 74 76 73 7378

37 42 27 27 26 26 26 24 27 27 22

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

From 2007 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 ADVTraded (RM mil)

Foreign ADV

Traded (RM mil)

Retail vs. Institution Foreign vs. Local

Securities Market Trading Participation

806

496

323 392 437 404

507 492 544

491 506

21

Securities Market Foreign Ownership

22.3

23.1

24.4

24.0

24.3

22.8

22.3

22.5

23.023.0 23.022.8

23.023.1

22.822.8

22.6

22.322.322.322.4

22.7

22.923.0

23.423.4

23.323.3

23.123.2

Based on Market Capitalisation (%)

22

-10,000

-5,000

0

5,000

10,000

2015

TNFO: RM19.7 bil

2012

TNFI: RM13.6 bil

2013

TNFI: RM2.6 bil2014

TNFO: RM6.9 bil

TNFI: Total Net Foreign Inflow

(RM mil)

TNFO: Total Net Foreign Outflow

Foreign Inflow/Outflow

Monthly foreign inflow/outflow from 2012 to 2017

-972

420942

4,355

2,610

1,977

359 419

-241-738

-231 -15

959

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000Monthly foreign inflow/outflow from Dec 2016 to Dec 2017(RM mil)

2016

TNFO: RM3.2 bil

2017

TNFI: RM10.8 bil

23

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

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

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

15

%

129

115 114

132

136

162

171

152

174

146

172

214

196

213204

196

218

239

288

196

207

229235

230

283293

226

237

262263

261

295

40

Quarterly Average Daily Contracts (’000)

31

42

35

60

Total Annual Contract (mil)

Crude Palm Oil FuturesOthersOpen Interest (’000)

15%

85%

6.2 6.1 6.1 6.2

8.4

9.6

FBMKLCI Futures

37

`

`

85

%3234

4445

42

4642

10.7

50

12.5

44

54

Derivatives Market Activity

55

14.2

62

51

62

56

14.0

5856

62

55

as

14.1

2325

28

57 57

24

54

125

156

123132

152

214196 196

230 237

295

24

15 15 20 21 19 15 18 20 18 14 11

4146

5244

42

2828 24

23

1918

2

2

3

22

21 2

5

33

4237

2633

37

55 53 54 55

6468

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(%)FKLI

25 27

36 34 34 36 33 34 31 2823

3438

2726 24 19

17 1515

1620

11

11

1 11

1

22 15 17

1513

12

10 15 2121 23

18 20 1925 28

3239

35 32 34 33

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(%)FCPO

1

Local

Domestic Retail

Domestic

Institutions

Foreign Institutions Local

Domestic RetailDomestic

Institutions

Foreign Institutions Foreign Retail

Derivatives Market Demography

25

0.9 1.6 2.75.5

13.5 13.4 15.1

0.2 0.71.2

1.4

1.7 2.9

4.5

2011 2012 2013 2014 2015 2016 2017

BSAS Annual Average Daily Value

Local ADV Foreign ADV

1.22.3 3.9

6.9

15.2 16.319.6

13.3

(RM bil)

BSAS ADV (RM bil)

13.5

0.9

0.8 0.9 1.1 1.1 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

0.2 0.2 0.2 0.3 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

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

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

BSAS Quarterly Average Daily Value(RM bil)

Islamic Capital Market Activity

DISCLAIMER:

Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this presentation. Whilst the company endeavors to ensure that

the contents in this presentation 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.

Copyright Bursa Malaysia Berhad 2017 (30632-P)

www.bursamalaysia.com

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

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