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© Bursa Malaysia.2010
BURSA MALAYSIA BERHAD1Q 2010 FINANCIAL RESULTS
20 April 2010
Overview
Key Financial Highlights 3
Securities Market Overview 4
Derivatives Market Overview 5
Ratios 1Q10 1Q09 ∆ % 4Q09 ∆ %
Net Profit Margin (%) 31.8 24.2 31 61.2 (48)
Annualised ROE (%) 13.1 8.4 56 48.8 (73)
3
Key Financial Highlights
Snapshot 1Q10 1Q09 ∆ % 4Q09 ∆ %
Operating Revenue (RM mil) 81.1 57.6 41 74.1 9
Net Profit (RM mil) 28.0 15.5 81 96.3 (71)
Earnings Per Share (sen) 5.3 2.9 83 18.2 (71)
Commentary
• Better group performance contributed by strong trading volume in securities market.
* Including capital gain of RM76 mil from the disposal of equity interest in BMD
*
*
*
*
662
818 911999 1,061
688
1,56
0
1,37
8
1,21
0
1,53
2
1Q09 2Q09 3Q09 4Q09 1Q10
23%
48%36%
28% 35%
4
Commentary
• Market capitalisation increased by 60% & rose to RM1.06 trillion.• Daily average trading value improved significantly by 123% compared to 1Q09.
894.36(As at 1 Jan 09)
1,272.78(As at 31 Dec 09)
1,320.57(As at 31 Mar 2010)
Daily Average Trading Value - OMT + DBT (RM mil)
Turnover Velocity FBM KLCI Index
Market Capitalisation(RM bil)
Highest1,345.09 (7 Apr 2010)
Securities Market Overview
147,771
117,030
142,266123,141 128,988
1.38
1.88
1.51
1.36
1.41
1Q09 2Q09 3Q09 4Q09 1Q10
Derivatives Market Overview
5
Total Contracts Traded (mil) Open Position
5
Daily Average Contracts 1Q10 1Q09 ∆ % 4Q09 ∆ %
Total 23,889 23,862 0.1 21,549 11
FCPO 15,794 14,188 11 15,564 1
FKLI 7,316 8,994 (19) 5,601 31
Financial Review & Performance
Financial Results Snapshots 7Operating Revenue 8Stable Revenue 9Operating Expenses 10Performance Ratios 11Capital Management 12Bursa’s Share Price Performance 13
7
Financial Results Snapshots
Operating Revenue(RM mil)
Operating Expenses (RM mil)
Net Profit(RM mil)
Earnings Per Share (sen)
Other Income(RM mil)
52.1
297.6
105.0182.6 177.6
101.633.729.0
6%
81.1
57.6
1Q10 1Q09
7.0
6.6
1Q10 1Q09
48.4
42.2
1Q10 1Q09
28.0
15.5
1Q10 1Q09
5.3 2.
9
1Q10 1Q0941% 15% 81% 83%
• Higher operating revenue contributed by improved securities trading revenue.
• Total expenses increased 15% mainly due to higher depreciation & amortisation and increased staff cost.
39.5
8.5
25.8
7.2
19.5
9.4
22.7
6.0
Securities Trading Revenue
Derivatives Trading Revenue
Stable Revenue Other Operating Revenue
RM mil
1Q10 1Q09
103% 10% 14% 20%
Operating Revenue
8* Other operating revenue mainly comprise conference fees , interest earned from participants’ contributions and perusal & processing fees
• Higher securities trading revenue driven by stronger trading activity & increased investor confidence.
• Derivatives trading revenue declined despite marginal increase in total number of contracts due to lower FLKI contracts traded, which attract higher fees.
• Higher other operating revenue contributed by higher conference income and new processing fee income.
Operating revenue 1Q10 : RM81.1 mil(1Q09: RM57.6 mil)
34%
16%
39%
11%
49%
10%
32%
9%
1Q10 1Q09
Trading Revenue (Securities)
Trading Revenue (Derivatives)
Stable Revenue
Other Operating Revenue*41%
9
8.8
7.8
4.0
2.7
0.7
1.8
7.5
5.6
4.4
2.7
0.7
1.9
Listing Fees Depository Services
Information Services
Broker Services
Participants' Fee
Access Fee
RM mil1Q10 1Q09
1Q09
Stable Revenue
• Higher listing fees due to a higher number of IPOs & warrants.
• Higher depository fees mainly due to increased corporate activities.
• Marginal decrease in information services fee due to lower subscriptions.
Stable revenue 1Q10 : RM25.9 mil (1Q09: RM22.7 mil)
**Broker Services comprises of data communication equipment rental income at a fixed monthly rate*Participants’ Fees comprises application/ admission/ initial/ registration fees, participants’ subscriptions and renewal fees
1Q10
Participants Fee*
Listing Fee
Access Fee
Broker Services**
Information Services
Depository Services14%
17% 40% 10% 3%
3%
34%
8%10%15%
30%
3%
33%
8%12%19%
25%
44%
23%
10%
7%1% 5%
10%
Operating Expenses
10
• Increased staff costs due to higher number of staff and provision for bonus.
• Higher D&A mainly due to accelerated depreciation of Bursa Trade Derivatives.
• Lower market development expenses following the completion of CME deal.
Operating Expenses 1Q10 : RM48.4mil(1Q09: RM42.2 mil)
•Other OPEX comprises administrative expenses, CDS consumables, conference expenses, etc.
45%
22%
14%
7%
1%6%
5%
1Q10 1Q09
Staff Cost
Depreciation & Amortisation (D&A)
Market Development
IT Maintenance
Professional Fees
Building Management Costs
Other OPEX*15%
21.5
11.1
4.8 3.
2
0.4 2.
5
4.9
18.8
9.2
5.7 3.0
0.3 2.
4
2.7
Staff Cost D&A Market Development
IT Maintenance
Professional Fees
Building Management
Costs
Other OPEX
RM mil 1Q10 1Q09
14% 21% 16% 7% 35% 4% 81%
11
% 1Q10 1Q09 ∆ %
Annualised ROE 13.1 8.4 56
Operating EBITDA Margin 54.0 42.9 26
Net Profit Margin 31.8 24.1 31
Stable Revenue + Derivatives Income: Total Operating Expenses 70.8 76.1 7
Performance Ratios
Capital ManagementAs at 31 March 2010
12
• The Company has sufficient financial resources to cover its CAPEX, Clearing Guarantee Fund commitment and working capital.
Commentary
RM mil 1Q10 1Q09 ∆ %
Shareholders’ Fund 870 748 16
Financial Resources Available for Use 504 431 17
13
Bursa’s Share Price Performance
0
500
1000
1500
2000
2500
3000
3500
4000
4500
DAVFBM KLCI Bursa
Base 0% = 2 Jan 2009 Units
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
As at 31 March 2010Total Shareholders’ Return % Share Price Performance %Since IPO 240 Since IPO 162
For YTD 2010 -1.6 For YTD 2010 -1.6
Business Review & Strategy
Mid-term Business Direction 15
Our Focus In 2010 16
15
Mid-term Business Direction
Continue Growing Our Core Business
(Securities & Derivatives)
• Establishing a niche inIslamic Markets
Attractive Investment &
Listing Destination
Building on advantage in Commodities Market
Whilst …..
16
Our Focus in 2010
SECURITIES MARKET
• Drive Liquidity & Vibrancy
• Enhance Pre and Post Trade Equities Infrastructure and
• Lower Friction and Widen Access
DERIVATIVES MARKET
• Restructure Infrastructure
• Develop Existing Business
• Leverage On Existing Strategic Partnership
ISLAMIC MARKET
• Internationalize Islamic Markets Products and Capabilities
• Increase Visibility In Line With MIFC’s Objectives
• Attract International Investors & Issuers
Additional Information
Securities Market Snapshot 18
Securities Market Product Diversity 19
Market Foreign Ownership 20
Securities Market Demography 21
Derivatives Market Demography 22
375 55
3
444
465
482 64
0 722
695 84
9 1106
870
824 10
23
18
Securities Market Snapshot
Average Market ValuationTotal Listed Companies
1Q10 1Q09 ∆ %
No. of IPOs 3 - -
No. of New Structured Warrants:
• Call Warrants• Put Warrants
437
16-
169-
Total Fund Raised*(RM bn):
• IPOs•Secondary Issues
10.2
0.99.3
6.1
-6.1
67
-52
Market Valuation & Listed Company
736 758 798 816 865 906 963 10211027 987 977 960 959
19
993
132
185
8%13%
18%
23%
36%
2%
Others
Leisure/ Gaming
Oil & Gas
Palm OilTelcos
Finance
Non-Shariah Compliant
Shariah Compliant
88% or 841
Shari’ahCompliant Companies
63% or USD205 bn in terms of market cap
Securities Market Product Diversity
Diverse Sectors Shari’ah Segmentation
ETFsREITsLoans
Main Market
Call Warrants ACE Market
12
As at 31 March 2010
38 3
Market Foreign Ownership
20
8.86%
1.20%
1.95%
0.45%
0.15%
13.67%
Singapore
UK
Hong Kong
USA
Mid-East
Others
26.28%
73.72%
Foreign Ownership by Nationality
Foreign Nominees
Jan-
07
Oct
-07
Apr
-08
Jul-0
8
Oct
-08
Apr
-07
Jul-0
7
Jan-
08
Apr
-09
July
-09
Jan-
09
Foreign Ownership (%)
25.0 27
.527
.026
.626
.525
.724
.121
.720
.920
.720
.720
.920
.420
.420
.3
Oct
-09
Dec
-09
Jan-
10 Mar2010
20.5%
Feb-
10
Securities Market Demography
21
43 4050 43
29 34 3724
33 29
51 5445 53 71 66 63
7667 71
7 7 11 10
6
2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD March 2010
%Retail Trading Participation
71 68 76 69 63 65 63 5873 74
29 32 24 31 37 35 37 4227 26
2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD March 2010
%Foreign Trading Participation
“Others”- refers to trades conducted for accounts not belonging to individuals/ institutions. Definitions of investors’ type clarified in 2004, hence reducing the type of investor falling under “others” category.
Retail Institutions Others Local Foreign
Derivatives Market Demography
3119 14 16 16 13 15 15 15 25
4548 45 43 40 40 41 46 45
44
36 5 3 3 2 2 2 2
3
14 23 31 37 40 45 42 37 38 28
2001 2002 2003 2004 2005 2006 2007 2008 2009 As at March 2010
% FKLI
40 38 35 33 35 31 25 27 33 38
15 21 26 24 23 27 34 38 2427
27 21 18 20 22 25 22 14 27 12
14
14 17 20 18 16 18 20 16 23
2001 2002 2003 2004 2005 2006 2007 2008 2009 As at March 2010
% FCPO
22
2 Leading Derivatives Products, FKLI & FCPO
3-Month KL Interbank Offered Rate Futures (FKB3)
KL Composite Index Futures (FKLI)
Crude Palm Oil Futures (FCPO)
* Local - A local participant is an individual who has been admitted as a participant inaccordance with The Rules, registered with SC and has the right to trade for himself -all futures contracts listed on the Derivatives Exchange.
LocalDomestic Retail
Domestic InstitutionsForeign Institutions
LocalDomestic Retail
Domestic InstitutionsForeign Institutions
26%
72%
2%
48%49%
3%
20082009
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