29 October M2018 Financial Results

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1 29 October M2018 Financial Results

2 Agenda Key Financial Highlights & Market Performance Financial Review Highlights & Conclusion Appendices 2

Key Financial Highlights & Market Performance Financial Highlights for 9M2018 9 Months

3 Key Financial Highlights & Market Performance Financial Highlights for 9M Months Financial Trend Securities Market Overview Derivatives Market Overview Islamic Capital Market Overview 3

4 Financial Highlights for 9M2018 Financial Items 9M2018 9M2018 vs. 9M2017 3Q2018 3Q2018 vs. 3Q2017 Operating Revenue (RM million) % % Operating Expenses (RM million) % % PATAMI (RM million) % % EPS (sen) % % Cost to Income Ratio (%) 44% 47% Annualised ROE (%) 28% 9M2018 vs. 9M2017: 1 percentage point 24% 2 percentage points Operating revenue increased mainly due to higher Securities Trading revenue. The increase was partially offset by lower trading revenue from Derivatives Market. Cost to income ratio maintained at 44% while ROE improved by 1 percentage point to 28%. 4

9 Months Financial Trend Highest operating revenue since listing 48 45 46 46 47 44 44 23 26 26 24 27 28 18 335.9 351.6 362.5 360.2 392.1 402.3 293.9 139.2 145.

5 9 Months Financial Trend Highest operating revenue since listing M2012 9M2013 9M2014 9M2015 9M2016 9M2017 9M2018 Cost to Income Ratio (%) ROE (%) Operating Revenue (RM mil) PATAMI 5 (RM mil)

6 Securities Market Overview Highest ADV since listing Average Daily Value ( ADV ) (OMT)(RM mil) Market Capitalisation (RM bil) 1,756 1,793 Fund Raised from New Listings & Secondary Market (RM bil) , , % % 1,845 1, % 5.1 1,284 1, M2017 9M2018 9M2017 9M2018 9M2017 9M2018 Velocity (%) ADV of Foreign Institutions ADV of Retail ADV of Domestic Institutions FBMKLCI Market Capitalisation No. of New Listing (including LEAP Market) Fund raised from secondary market Fund raised from new listings 6

7 Derivatives Market Overview FCPO trades influenced by the volatility of the underlying Average Daily Contracts ( ADC ) & Volatility 18% 14% 5% 9% Open Interest (No. of Contract) 31 Jan , Aug , Sept ,375 58, ,779 1,718 3% 1 Sept ,548 85% 49, % 43,644 78% 15% 8,636 10,417 19% 9M2017 9M2018 ADC FBMKLCI Futures Volatility of FBMKLCI ADC - Crude Palm Oil Futures Volatility of Crude Palm Oil Prices ADC - Others 7

Islamic Capital Market Overview Higher foreign trades under volume-based pricing Bursa Suq Al-Sila ( BSAS ) ADV (RM bil) 135 160 Value of Listed Sukuk (USD bil) 25 25 55.4 55.

8 Islamic Capital Market Overview Higher foreign trades under volume-based pricing Bursa Suq Al-Sila ( BSAS ) ADV (RM bil) Value of Listed Sukuk (USD bil) Market Capitalisation of Shariah Compliant Stocks (RM bil) 75% 76% % 0.5% 1,145 1, % M2017 9M2018 No. of Trading Participants Domestic Foreign 30 SEPT SEPT 2018 No. of Sukuk Domestic Foreign 30 SEPT SEPT 2018 No. of Shariah Compliant Stocks (%) Market Capitalisation of Shariah Compliant Stocks 8

9 Financial Review Financial Snapshot Operating Revenue Operating Expenses 9

7 3Q2017 3Q2018 9M2017 9M2018 3Q2017 3Q2018 9M2017 9M2018 PATAMI (RM mil) Cost to income ratio (%) 2.6% 167.

10 Financial Snapshot Highest 9-month PAT since 2007 and highest operating revenue since listing Operating revenue (RM mil) 2.6% Operating expenses (RM mil) 0.1% % 2.8% Q2017 3Q2018 9M2017 9M2018 3Q2017 3Q2018 9M2017 9M2018 PATAMI (RM mil) Cost to income ratio (%) 2.6% percentage points % Q2017 3Q2018 9M2017 9M2018 3Q2017 3Q2018 9M2017 9M

Operating Revenue Growth mainly contributed by higher Securities Trading Revenue 6.0 Total RM392.1 mil 16.1 26.0 31.4 45.4 11.7 60.5 2.6% Total RM402.3mil 16.4 27.3 31.8 45.2 10.8 57.6 5.5 392.

11 Operating Revenue Growth mainly contributed by higher Securities Trading Revenue 6.0 Total RM392.1 mil % Total RM402.3mil Growth contribution by revenue streams: % 7.4% 0.4% 1.2% 4.8% 1.8% 7.9% 6.5% (RM mil) M2017 9M2018 9M2017 9M2018 Securities Trading Revenue Derivatives Trading Revenue BSAS Trading Revenue Listing & Issuer Services Depository Services Market Data Member Services & Connectivity Conference Fee & Exhibition Related Income Increase in Securities Trading Revenue from higher ADV-OMT. Decrease in Derivatives Trading Revenue due to lower number of FCPO contract traded and guarantee fees earned, as well as higher market incentives incurred in 9M2018. Lower BSAS Trading Revenue despite increase in its ADV due to volume-based pricing. Higher Market Data due to higher number of subscribers. 11

Operating Expenses Fairly stable y-on-y with a marginal increase of 0.1% Total RM183.

0 0.1% 14.2 7.7 16.5 183.9 6.2% -0.4-0.3-3.1 8.2% 4.5% 2.3% 16.7% -0.6 2.4% 184.2 100.2 106.

maintenance Service fees Other operating expenses^ Increase in staff cost due to annual salary

Decrease in Globex fees due to lower number of derivatives contracts traded.

12 Operating Expenses Fairly stable y-on-y with a marginal increase of 0.1% Total RM183.9 mil Total RM184.2 mil Movement of expenses: (RM mil) % % % 4.5% 2.3% 16.7% % M2017 9M2018 9M2017 9M2018 Staff costs Depreciation & amortisation Marketing & development IT maintenance Service fees Other operating expenses^ Increase in staff cost due to annual salary increment, provision for variable staff costs and higher manpower. Decrease in Globex fees due to lower number of derivatives contracts traded. Lower depreciation as some IT assets are fully depreciated Note^ - Other operating expenses include building maintenance, administrative expenses and CDS expenses. 12

13 Highlights & Conclusion Highlights of 9M2018 Initiatives Moving Forward 13

14 Highlights of 9M2018 Initiatives SI 1 Create a More Facilitative TRADING ENVIRONMENT Launched BURSASUSTAIN, a comprehensive online portal designed as a onestop knowledge and information hub on corporate governance and sustainability. Launched the Invest Bursa, Invest in You campaign. SI 2 Facilitate More TRADABLE ALTERNATIVES Implementation of Intra Day Short Selling (IDSS) for all investors. Introduced enhanced US Dollar denominated Palm Olein Futures Contract. Introduction of a new category of traders known as trading specialists who trade on their own account. Launched the Mini FTSE Bursa Malaysia Mid 70 Index Futures Contract (FM70). SI 3 Reshape MARKET STRUCTURE & FRAMEWORK Exemption of stamp duty on shares of mid and small cap companies traded on Bursa Malaysia for 3 years from Mar 18 Feb 21. Waiver on trading and clearing fees for 6 months for new individual investors. Enhancements of FCPO contract. Liberalisation of margin financing rules. Introduction of volume-based incentive programme. Announced new sector classification and sectorial index series. SI 4 REGIONAL MARKETPLACE with Global Access (Centre of ASEAN) Organised the Palm and Lauric Oils Price Outlook Conference & Exhibition Organised the Shariah Investing Fair

15 Moving Forward SECURITIES MARKET The Securities Market is expected to be resilient, given the sound economic fundamentals and anticipated growth momentum. Trading volatility is expected to continue in the last quarter of 2018 and will be influenced by external and domestic events. DERIVATIVES MARKET Recent broader price range and volatility in crude palm oil prices are expected to stimulate trading and hedging activities in FCPO and US Dollar-denominated FPOL contracts. The recently introduced FTSE Bursa Malaysia Mid 70 Index (FM70) mini-futures contract which complements the existing FKLI contracts, has seen encouraging trades in September 2018 and is expected to attract broader investor participation going-forward. ISLAMIC CAPITAL MARKET Bursa Malaysia expects to see increased participation of institutional investors to trade on the Bursa Malaysia-i platform whilst the promotion of Shariah-compliant investing will continue through engagements with market players and retail investors. Bursa Suq Al-Sila, on the other hand will continue to expand its global reach into selective African and Central Asian regions in Bursa Malaysia will continue with its initiatives to enhance the breadth and depth of the ecosystem. Despite the slower growth projected for global and domestic economy in 2018, the Exchange expects to achieve a sustainable performance for the current financial year. 15

16 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 16

Securities Market Trading Activity 42 30 34 27 34 27 28 25 28 37 31 Quarterly ADV Traded & Velocity 25 30 29 30 28 30 28 29 30 29 27

1,933 2,042 2,227 1,981 1,951 1,842 1,439 1,595 1,643 1,686 1,740 1,690 1,341 1,430 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Average Daily Value Traded (RM mil) Annual ADV Traded & Velocity 34 34 33 33 28 30 29 30 27 32 34 1,181 1,129 1,454 1,699 1,573 1,915

17 Securities Market Trading Activity Quarterly ADV Traded & Velocity ,621 2,716 2,730 2,308 2,161 2,002 2,068 2,053 2,196 2,378 2,316 1,579 1,732 1,841 1,901 2,081 1,913 1,933 2,042 2,227 1,981 1,951 1,842 1,439 1,595 1,643 1,686 1,740 1,690 1,341 1,430 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 1Q18 2Q18 3Q18 Turnover Velocity (%) Average Daily Value Traded (RM mil) Annual ADV Traded & Velocity ,181 1,129 1,454 1,699 1,573 1,915 2,053 1,991 1,812 2,314 2, M18 17 Turnover Velocity (%) Average Daily Value Traded (RM mil)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9M18 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Local 283 369 392 442 354 424 530 464 525 372 569 496 323 392 437 404 507 492 544 491 506 682 24 33 27 26 23

73 78 73 Retail ADV Traded (RM mil) Retail (%) Institutions (%) Foreign ADV Traded (RM mil) Foreign (%) From

18 M M18 Securities Market Trading Participation Retail vs. Institution Foreign vs. Local Retail ADV Traded (RM mil) Retail (%) Institutions (%) Foreign ADV Traded (RM mil) Foreign (%) From 2008 to 2009, the statistics were based on Brokers submission. From 2010 onwards statistics were based on Bursa s internal system. 18 Local (%)

19 Securities Market Foreign Ownership Based on Market Capitalisation (%)

20 Foreign Inflow/Outflow Monthly foreign inflow/outflow from 2013 to Sept 2018 (RM mil) 10,000 5, ,000-10, TNFI: RM2.6 bil 2014 TNFO: RM6.9 bil 2015 TNFO: RM19.7 bil 2016 TNFO: RM3.2 bil 2017 TNFI: RM10.8 bil 9M2018 TNFO: RM8.5 bil TNFI: Total Net Foreign Inflow TNFO: Total Net Foreign Outflow (RM mil) 4,000 3,000 2,000 1, ,000-2,000-3,000-4,000-5,000-6,000-7, Monthly foreign inflow/outflow from Sept 2017 to Sept ,376 1, ,120-1,678-4,927-5,

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

Market Activity 162 171 Quarterly Average Daily Contracts ( 000) 174 172 214 196 213 218 204 196 239 288 196 229 207

21 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 1Q18 2Q18 3Q M18 17% 76% 7% 3% Derivatives Market Activity Quarterly Average Daily Contracts ( 000) Total Annual Contract (mil) ` 51 ` ` ` 19% 78% Open Interest ( 000) Others Crude Palm Oil Futures FBMKLCI Futures 21

Derivatives Market Demography (%) FKLI (%) FCPO 37 26 33

68 2 2 52 1 44 2 2 5 42 46 3 3 28 24 28 23 3 24 19 18 15

26 24 19 36 34 34 36 27 10 15 21 1 1 1 17 15 15 33 34 31

2013 2014 2015 2016 2017 9M18 2008 2009 2010 2011 2012

22 Derivatives Market Demography (%) FKLI (%) FCPO M M18 Foreign Institutions Domestic Retail Foreign Institutions Foreign Retail Local Domestic Institutions Local Domestic Institutions Domestic Retail 22

23 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 1Q18 2Q18 3Q18 Islamic Capital Market Activity (RM bil) BSAS Quarterly Average Daily Value (RM bil) BSAS Annual Average Daily Value M18 Local ADV Foreign ADV BSAS ADV (RM bil) 23

INVESTOR RELATIONS CONTACT INFORMATION RASMONA ABDUL RAHMAN rasmona@bursamalaysia.com 603-2034 7175 ADAM ISKANDAR AHMAD ZAHAR adamiskandar@bursamalaysia.

24 INVESTOR RELATIONS CONTACT INFORMATION RASMONA ABDUL RAHMAN ADAM ISKANDAR AHMAD ZAHAR RAFIDAH AZIZ ir@bursamalaysia.com DISCLAIMER: These presentation slides are owned by Bursa Malaysia Berhad and/or the Bursa Malaysia group of companies ( Bursa Malaysia ). Whilst Bursa Malaysia endeavors to ensure that the contents in this presentation are accurate, complete, current and have been obtained from sources believed by Bursa Malaysia to be accurate and reliable, neither Bursa Malaysia or the presenter of this presentation 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 Bursa Malaysia be liable for any claim, however arising, out of or in relation to this presentation. Copyright Bursa Malaysia Berhad 2018 (30632-P)

25 April Q2018 Financial Results

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