bursa malaysia berhadbursa.listedcompany.com/misc/1h10_16july10.pdf · 2010. 7. 19. · 31/12/2009...

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Visit us at http://www.bursamalaysia.com BURSA MALAYSIA BERHAD 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 2010 Dato’ Yusli Mohamed Yusoff, CEO Nadzirah Abd Rashid, CFO 1H 2010 Financial Results 16 July 2010

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Page 1: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

Visit us at http://www.bursamalaysia.com

BURSA MALAYSIA BERHAD

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 2010

Dato’ Yusli Mohamed Yusoff, CEONadzirah Abd Rashid, CFO

1H 2010 Financial Results

16 July 2010

Page 2: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

Highlights

Sustainable Financial Performance 3

Sustained Interest in Securities Market 4

Derivatives Market Impacted by Lower Volatility 5

Page 3: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

144.4

157.6

1H09 1H10

8.89.5

1H09 1H10

50.5 55.5

1H09 1H10

Net Profit (RM mil)

3

Sustainable Financial Performance

9%

6.9

Net Profit Margin & Annualised ROE (%)

Net Profit Margin Annualised ROE

31.832.2

13.6 13.20

10

20

30

401%

1%

10%

8%

1H09 1H10

Operating Revenue (RM mil) Net Interim Dividend per Share (sen)

Page 4: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

1,1451,405

1H09 1H10

8181,044

37% 31%

1

12

1H09 1H104

Turnover Velocity

Daily Average Trading Value -OMT + DBT (RM mil)

1,100%

30

86

1H09 1H10

187%

Number of Structured Warrants

Number of IPOs

1113

1H09 1H10

14%

From IPO & secondary offeringsTotal Funds Raised (RM bil)

Sustained Interest in Securities Market

Market Capitalisation (RM bil)

FBM KLCI Index

1,272.78(31 Dec 09)

Highest1,345.09

(7 Apr 2010)

894.36(1 Jan 09)

1,314.02 (30 June 2010)

23%

16%

28%

3.2% YTD

Page 5: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

26,77923,176

1H09 1H10

16,350

14,510

1H09 1H10

5

Daily Average Contracts (Units)

Open Positions

Derivatives Market Impacted by Lower Volatility117,030

114,820

9,767

8,081

1H09 1H10

FCPO FKLI

17%11%

13%

2%

Page 6: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

Financial Review & Performance

Financial Results Snapshots 7

Higher Revenue Driven by Securities Trading 8

Managing Costs 9

Sustained Performance Ratios 10Strong Cash Reserves 11Consistent Dividend Payout 12

Page 7: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

144.4

14.3

88.3

50.59.6

157.6

14.8

93.9

55.510.5

1 2 3 4 5

Financial Results Snapshots

7

9%

3%

6%

10%

9%

1H09 1H09 1H09 1H09 1H091H10 1H10 1H10 1H10 1H10

Operating Expenses (RM mil)

Other Income(RM mil)

Operating Revenue(RM mil)

Net Profit(RM mil)

EPS(sen)

Page 8: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

14.9

12.0

8.9

5.43.7 1.4

17.915.9

8.2

5.53.7 1.3

Listing Fees Depository Services

Information Services

Broker Services

Access Fees Participants' Fees

Operating Revenue

67.4

21.1

46.2

9.7

76.4

17.5

52.5

11.2

Equities Trading Revenue

Derivatives Trading Revenue

Stable Revenue Other Operating Revenue

49%

33%

11%7%

8

Higher Revenue Driven by Securities Trading

8* Other operating revenue mainly comprise conference fees , interest earned from participants’ contributions and perusal & processing fees.

1H10

Equities Trading Revenue

Stable Revenue

13%

14%

15%17%

Operating Revenue up by 9% to

RM157.6 mil in 1H10(1H09: RM144.4 mil)

• Higher equities trading revenue driven by improved sentiment.

• Derivatives trading revenue declined due to lower volatility in CPO prices and equities market.

• Stable revenue increased due to higher listing and issue fees from the higher no. of IPO’s, structured warrants and secondary issues.

RM mil 1H09 1H10

Stable Revenue

RM mil 1H09 1H10

20%33%

8%

2%1%

Derivatives Trading Revenue

Other Operating Revenue*

Page 9: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

47%

23%

7%

7%

16%

15.2

6.3

6.7

22

43.7

13

10

7.5

18.3

39.5

Other OPEX

Market Development

IT Maintenance

Depreciation & Amortisation (D&A)

Staff Cost

9• Other OPEX comprises building management costs, professional fees, administrative expenses, CDS consumables & etc.

1H10

Staff Cost

D & A

IT Maintenance

Market Development

Other OPEX

• Staff cost up due to talent development initiatives.• Accelerated D & A for Bursa Trade Derivatives.

Managing Costs

Operating Expenses Increased 6% to

RM93.9 mil in 1H10 (1H09: RM88.3 mil)

11%

20%

18%

11%

37%

1H09 1H10RM mil

Page 10: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

10

Sustained Performance Ratios

Stable Revenue + Derivatives Trading Revenue :

Operating Expenses

31.8

51.6

76.2

13.6

32.2

54.4

74.6

13.2

Net Profit Margin Operating EBITDA Margin Return on Equity

3%

1%

5%

2%(%) 1H09 1H10

Page 11: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

849852

31/12/2009 30/06/2010

31/12/2009 30/06/2010

11

Strong Cash Reserves

Shareholders’ Fund

Financial Resources Available for Use

RM mil

453496

RM mil

0.4%

9%

The Company has sufficient financial resources to cover its Clearing Guarantee Fund Commitment, CAPEX and working capital requirements.

Page 12: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

93%

Consistent Dividend Payout Maximising Value to Shareholders, Surpassed 75% Payout Policy

12

FINANCIAL YEAR

2009Interim dividend

- Franked dividend 5.1- Single tier 5.0

Final Dividend (single tier) 9.0

Historical Dividend Payout (sen/gross)

FINANCIAL YEAR

2008Interim Dividend 16.5Final Dividend 7.8 91%

% of Dividend Payout(exclude special dividend)

FINANCIAL YEAR

2010 Interim Dividend (single tier) 9.5 91%

Page 13: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

Business Review & Strategy

Key Developments in 2010 14

Continued Focus in 2010 15

Global Recognition 16

Bursa Malaysia - A Market of Quality 17

Page 14: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

14

InternationalisingOur MarketBuilding Quality Increasing

LiquidityEnhancing Efficiency

Relaxing admission

requirements for Dual Licensing

E-dividend

Retail rejuvenation

DMA marketing

Listing of Malaysian derivatives

products on CME’s Globex

Enhancing standard of CG

Maintain market integrity

Market education & engagement

CME’s KL Hub as a gateway for

trading derivatives products

CFTC approval to deal with US

customers

Expanding reach & profile of Islamic

capital market

ASEAN Link

QDII – Malaysia investment

destination for china investors

Key Developments in 2010

CBBCsNew ETFsNew Reits

Page 15: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

15

SecuritiesMarket

Drive Liquidity & Vibrancy

Enhance Pre and

Post Trade Equities

Infrastructure

Lower Friction

and Widen Access

DerivativesMarket

Restructure Infrastructure

Develop Existing Business

Leverage On Existing

Strategic Partnership

Islamic Market

Internationalize Islamic Markets

Products & Capabilities

Increase Visibility

In Line With MIFC’s

Objectives

Attract International

Investors & Issuers

Continued Focus in 2010

Page 16: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

16

Approval from US Commodity Futures Trading Commission (CFTC) to enable Malaysian Futures brokers to deal with US customers.

On Watch List for FTSE Global Equity Index

Series: Advanced Emerging

Partnering with the world’s premier derivatives player to develop our derivatives market

QDII – Malaysia Investment

destination for china investors

Global Recognition

The Asset Triple A Awards- "Market Innovation" award for Bursa Suq Al-Sila‘

Investor Relations Global Rankings (IRGR)

- "Best Corporate Governance Practices" and "Best Online Annual

Report"

CBRCRecognition

CFTC Approval

FTSEWatch List

CME Partnership

AWARDS2010

Page 17: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

17

Safe Regulatory Environment

Compelling Products

Secure Infrastructure

Bursa Malaysia - A Market of Quality

Page 18: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

Q & AVisit us at http://www.bursamalaysia.com

BURSA MALAYSIA BERHAD1H 2010 Financial Results

16 July 2010

Page 19: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

Additional Information

2009 Initiatives 20

Islamic Market Highlights 21

Trading Participation 22

Market Foreign Ownership 23

Derivatives Market Demography 24

Derivatives Market Activity 25

Page 20: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

20

2009 Initiatives –Building Blocks For An Attractive Market

Multicurrency Securities Framework

KLCI Conversionto FTSE

Foreign IPOs

INTERNATIONALISINGMARKETS

Strategic partnership with CME on derivatives market

Restructuring of minimum bids/spread size

Introduction of SBL-Negotiated Trade

Market Making-Structured Warrants & ETFs

More Proprietary Day Traders

STRENGTHENING LIQUIDITY

Direct Market Access - Equity

Market Education & Awareness

NEW PRODUCTS & SERVICES

FTSE BM Palm Oil Plantation Index Series

Sukuk Listing

Bonds Listing(exempt regime)

Page 21: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

21

Islamic Market Highlights

Foreign Membership Admission

1. Saudi Hollandi Bank

Foreign Membership Shari’ah Approvals

1. Al Rajhi Bank

2. Alinma Bank

3. Bank AlBilad

No. of Listings 14

% of Total Listings 72%

Programme value listed USD 20,937,989,256

Exchange Global Ranking 1

Sukuk Exempt Regime listings @ 30 June 2010

Non-Shariah Compliant

Shariah Compliant

88% or 846

Shari’ahCompliant Companies

64% or RM 666.34 bn in terms of market cap

Shari’ah Compliant Companies

Total Value Traded and ADV for BSAScontinues to rise month on month saveand except May 2010 which saw a dropdue to the BNM’s OPR hike.

Page 22: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

43 40 50 43 29 34 37 24 33 27

51 5445

53

7166 63

7667

73

6 6 5 4

2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 30 June

2010

%Retail Trading Participation

22

Trading Participation

“Others”- refer to trades conducted for accounts notbelonging to individuals/ institutions. Definitions ofinvestors’ type clarified in 2004, hence reducing thetype of investor falling under “others” category.

2010 statistics were based on Bursa’s internal system.From 2001 to 2009, the statistics were based onBrokers’ submission.

71 68 76 69 63 65 63 58 73 75

29 3224

3137 35 37

42

27 25

2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 30 June

2010

%Foreign Trading Participation

Retail Institutions Others Local Foreign

Page 23: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

23

Market Foreign Ownership

8.7%

1.2%

1.9%

0.4%

0.2%

13.1%

Singapore

UK

Hong Kong

USA

Mid-East

Others

25.40%

74.60%

Foreign Ownership by Nationality

Foreign Nominees

Foreign Ownership

25.0 27

.5

27.0

26.6

26.5

25.7

24.1

21.7

20.9

20.7

20.7

20.9

20.4

20.4

20.6

20.6

June2010

%

Page 24: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

24

Derivatives Market Demography

31 19 14 16 16 13 15 15 15 23

45

4845 43 40

40 41 46 45

47

3

65

3 32 2

2 2

2

14

23

3137 40

45 4237 38

28

2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 30 June

2010

%FKLI

* Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC and has the right to trade for himself - all futurescontracts listed on the Derivatives Exchange.

LocalDomestic Retail

Domestic InstitutionsForeign Institutions

40 38 35 33 35 31 25 27 33 35

15 2126 24 23

2734 38

24 28

2721 18

20 22 25 2214

2715

14 14 17 20 18 16 18 2016

22

2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 30 June

2010

%

FCPO

LocalDomestic Retail

Domestic InstitutionsForeign Institutions

Page 25: BURSA MALAYSIA BERHADbursa.listedcompany.com/misc/1H10_16July10.pdf · 2010. 7. 19. · 31/12/2009 30/06/2010 31/12/2009 30/06/2010 11 Strong Cash Reserves Shareholders’ Fund. Financial

2003 2004 2005 2006 2007 2008 2009 1H10

49K

66K

85K

159K

125K

156K

123K

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

139K

122K

136K

156K148K

117K

142K

123K129K

115

25

Derivatives Market Activity

2.0

2.6

2.5 4.

2

6.2

6.1

6.1

Annually (Total, million units)

KLCI Futures

Crude Palm Oil Futures Open Position

Others

39%

30,2

83

20,9

45

24,5

22

24,1

69

23,8

62

29,4

23

24,0

18

59%

Quarterly (Daily Average Contracts)

KLCI Futures

Crude Palm Oil Futures Open Position

Others

21,5

49

115K

2.923

,889

35%

63%

22,5

17