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
Highlights
Sustainable Financial Performance 3
Sustained Interest in Securities Market 4
Derivatives Market Impacted by Lower Volatility 5
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)
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
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%
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
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)
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*
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
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
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.
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%
Business Review & Strategy
Key Developments in 2010 14
Continued Focus in 2010 15
Global Recognition 16
Bursa Malaysia - A Market of Quality 17
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
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
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
17
Safe Regulatory Environment
Compelling Products
Secure Infrastructure
Bursa Malaysia - A Market of Quality
Q & AVisit us at http://www.bursamalaysia.com
BURSA MALAYSIA BERHAD1H 2010 Financial Results
16 July 2010
Additional Information
2009 Initiatives 20
Islamic Market Highlights 21
Trading Participation 22
Market Foreign Ownership 23
Derivatives Market Demography 24
Derivatives Market Activity 25
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)
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.
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
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
%
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
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