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
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 : [email protected]
Fax : 603-2732 6160
RASMONA ABDUL RAHMAN
603-2034 7175
ADRINA CHE AHMAD
603-2034 7488
NURHAFIZAWATI HANAFFI
603-2034 7484
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