25 October M2017 Financial Results

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1 25 October M2017 Financial Results

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

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 9M2017 Financial Items 9M2017 9M2017 vs. 9M2016 3Q2017 3Q2017 vs. 3Q2016 Operating Revenue (RM million) % % Operating Expenses (RM million) % % PATAMI (RM million) % % EPS (sen) % % Cost to Income Ratio (%) 44% 3 percentage points 45% 3 percentage points Annualised ROE (%) 27% 3 percentage points 24% 2 percentage points 9M2017 vs. 9M2016: Operating revenue increased due to higher Securities trading, Listing and Issuer Services and Depository Services revenue. The increase was partially offset by lower revenue from Derivatives and Islamic Capital Markets. Cost to income ratio and ROE both improved by 3 percentage points to 44% and 27% respectively. 4

9 Months Financial Trend Highest operating revenue since listing 50 48 45 46 46 47 44 23 26 26 24 27 18 18 392.1 335.9 351.6 362.5 360.2 296.5 293.9 112.9 114.

5 9 Months Financial Trend Highest operating revenue since listing M2011 9M2012 9M2013 9M2014 9M2015 9M2016 9M2017 Cost to Income Ratio (%) ROE (%) Operating Revenue (RM mil) PATAMI 5 (RM mil)

6 Securities Market Overview Improved market performance Y-o-Y Average Daily Value ( ADV ) (OMT)(RM mil) Market Capitalisation (RM bil) 1,653 1,756 Fund Raised from New Listings & Secondary Market (RM bil) , , % 9.4% 1, ,284 1, % M2016 9M2017 9M2016 9M2017 9M2016 9M2017 Velocity (%) ADV of Foreign Institutions ADV of Retail ADV of Domestic Institutions FBMKLCI Market Capitalisation No. of New Listing Fund raised from secondary market Fund raised from new listings 6

7 Derivatives Market Overview Continuous growth in FCPO trades, supporting ADC upward trend Average Daily Contracts ( ADC ) & Volatility 22% 19% 10% 6% Open Interest (No. of Contract) 30 Dec , Sept March 261, , June ,260 1% 58,686 58, Sept ,548 80% 85% 47, % 49,943 19% 11,387 8,636 15% 9M2016 9M2017 ADC FBMKLCI Futures Volatility of FBMKLCI ADC - Crude Palm Oil Futures Volatility of Crude Palm Oil Prices ADC - Others 7

Islamic Capital Market Overview BSAS ADV improved Y-o-Y Bursa Suq Al-Sila ( BSAS ) ADV (RM bil) 121 135 Value of Listed Sukuk (USD bil) 23 25 Market Capitalisation of Shariah Compliant Stocks (RM

8 Islamic Capital Market Overview BSAS ADV improved Y-o-Y Bursa Suq Al-Sila ( BSAS ) ADV (RM bil) Value of Listed Sukuk (USD bil) Market Capitalisation of Shariah Compliant Stocks (RM bil) 74% 75% % 3.6% 1, % 1, M2016 9M2017 No. of Trading Participants Domestic Foreign 30 SEPT SEPT 2017 No. of Sukuk Domestic Foreign 30 SEPT SEPT 2017 No. of Shariah Compliant Stocks (%) Market Capitalisation of Shariah Compliant Stocks 8

9 Financial Review Financial Snapshot Operating Revenue Operating Expenses Dividends 9

Financial Snapshot Improvement in 9M2017 results Operating revenue (RM mil) 360.2 8.9% 392.1 Operating expenses (RM mil) 1.4% 181.4 183.9 9.7% 2.2% 111.8 122.6 57.8 59.

10 Financial Snapshot Improvement in 9M2017 results Operating revenue (RM mil) % Operating expenses (RM mil) 1.4% % 2.2% Q2016 3Q2017 9M2016 9M2017 3Q2016 3Q2017 9M2016 9M2017 PATAMI (RM mil) Cost to income ratio (%) % percentage points percentage points % Q2016 3Q2017 9M2016 9M2017 3Q2016 3Q2017 9M2016 9M

Operating Revenue Growth mainly contributed by higher Securities Trading Revenue 5.8 Total RM360.2 mil 15.9 26.5 29.2 39.5 12.6 66.8 8.

2 +0.2 7.6% 2.0% (RM mil) 1.7% 4.4% 392.1 163.9 195.0 360.2 19.

Services Market Data Member Services & Connectivity Conference Fee & Exhibition Related Income Increase in Securities Trading Revenue from

11 Operating Revenue Growth mainly contributed by higher Securities Trading Revenue 5.8 Total RM360.2 mil % Total RM392.1mil Growth contribution by revenue streams: % % 14.8% % 2.0% (RM mil) 1.7% 4.4% % 9M2016 9M2017 9M2016 9M2017 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. Lower Derivatives Trading Revenue due to lower number of FKLI contracts traded and guarantee fees earned. Higher Listing and Depository revenue due to increase in the number of IPOs and new structured warrants listed. 11

Operating Expenses Increased marginally by 1.4% Total RM181.4 mil Total RM183.9 mil Movement of expenses: 26.3 24.6 (RM mil) 17.

0% 9M2016 9M2017 9M2016 9M2017 Staff costs Increase in staff cost due to annual salary increment.

Marketing & development Increase in service fees due to higher exchange rate.

12 Operating Expenses Increased marginally by 1.4% Total RM181.4 mil Total RM183.9 mil Movement of expenses: (RM mil) % % 6.4% % 0.7% 1.5% 16.0% 9M2016 9M2017 9M2016 9M2017 Staff costs Increase in staff cost due to annual salary increment. Depreciation & amortisation Increase in IT maintenance due to new and renewal of maintenance contracts. Marketing & development Increase in service fees due to higher exchange rate. IT maintenance Lower other operating expenses as 9M2016 included a one-off consultancy fees. Service fees Other operating expenses^ Note^ - Other operating expenses include building maintenance, administrative expenses and CDS expenses. 12

13 Highlights & Conclusion Highlights of 9M2017 Initiatives Moving Forward 13

14 Highlights of 9M2017 Initiatives SI 1 Create a More Facilitative TRADING ENVIRONMENT SI 2 Facilitate More TRADABLE ALTERNATIVES SI 3 Reshape MARKET STRUCTURE & FRAMEWORK Revised Tick Rule on Regulated Short Selling and Securities Borrowing and Lending Negotiated Transactions Failed Trade Proposal Frameworks Launched Green Lane Policy incentive to the top 30 listed companies for good corporate governance and disclosure practices Bursa Malaysia Derivatives implements settlement via RENTAS New Listing Requirements and various amended rules for the Leading Entrepreneur Accelerator Platform Market Launched the Leading Entrepreneur Accelerator Platform (LEAP) Market for SMEs and sophisticated investors Launched The Mid and Small Cap Research Scheme with an inaugural batch of 100 mid and small-cap public listed companies Revamped the participantship structure for Bursa Malaysia Derivatives Clearing Berhad SI 4 REGIONAL MARKETPLACE with Global Access (Centre of ASEAN) Signed MoU with the Shanghai Stock Exchange to explore potential ways to improve visibility and accessibility to market participants in Malaysia and China 14

15 Moving Forward SECURITIES MARKET The Securities Market is forecasted to remain stable towards the end of 2017, given strong fundamentals of the Malaysian economy and equity market. Geopolitical developments as well as the tightening of monetary policies in major economies may contribute to trading volatilities in the near term. DERIVATIVES MARKET Stable outlook for commodity prices and tapering of the monetary easing policy will continue to affect trading of the FCPO and FKLI contracts. ISLAMIC CAPITAL MARKET Bursa Malaysia will continue with its efforts to expand Bursa Suq Al-Sila s (BSAS) reach in new regions such as North Africa and Central Asia. Bursa Malaysia-i, as the world s first fully integrated end-to-end Shariah-compliant investing platform, will continue to intensify its efforts to promote Shariah investing in the market. Bursa Malaysia will continue its efforts to make the Malaysian capital market attractive, and anticipates an improved 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 35 28 31 37 42 30 34 27 34 Quarterly ADV Traded & Velocity 27 28 25 28 37 31 25 30 29 30 28 30 28 29 30 29 27 26 25 34 35 26 2,621 2,308 2,378 2,161 2,002 2,068

3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Turnover Velocity (%) Average Daily Value Traded (OMT, RM mil) 53 Annual ADV Traded & Velocity

17 Securities Market Trading Activity Quarterly ADV Traded & Velocity ,621 2,308 2,378 2,161 2,002 2,068 2,053 2,196 2,081 2,042 1,793 1,579 1,732 1,841 1,901 1,913 1,933 1,981 1,951 1,842 1,435 1,387 1,439 1,595 1,643 1,686 1,740 1,690 1,430 1,341 1,209 1Q10 2Q10 3Q10 4Q10 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 Turnover Velocity (%) Average Daily Value Traded (OMT, RM mil) 53 Annual ADV Traded & Velocity ,179 1,181 1,129 1,454 1,699 1,573 1,915 2,053 1,991 1,812 2, M17 17 Turnover Velocity (%) Average Daily Value Traded (OMT, RM mil)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 9M17 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Local 806 806 283 369 392 442 354 424 530 464 372 539 496 323 392 437 404 507 492 544 491 497 37 24 33 27 26

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

18 M M17 Securities Market Trading Participation Retail vs. Institution Foreign vs. Local Retail ADV Traded (RM mil) Retail (%) Institutions (%) Foreign ADV Traded (RM mil) Foreign (%) From 2007 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 2012 to Sep 2017 (RM mil) 10,000 5, ,000-10, TNFI: RM13.6 bil 2013 TNFI: RM2.6 bil 2014 TNFO: RM6.9 bil 2015 TNFO: RM19.7 bil 2016 TNFO: RM3.2 bil 9M2017 TNFI: RM10.1 bil TNFI: Total Net Foreign Inflow TNFO: Total Net Foreign Outflow (RM mil) 5,000 4,000 3,000 2,000 1, ,000-2,000-3,000-4,000-5,000 Monthly foreign inflow/outflow from Sep 2016 to Sep ,610 1, ,934 4,

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

2010 2011 2012 2013 2014 2015 2016 9M17 14% 86% Derivatives Market Activity 129 132 115

196 213 204 196 4244 45 42 46 40 42 37 35 32 34 31 239 50 288 218 44 229 235 230 207

Contract (mil) 214 196 196 156 152 132 125 123 12.5 10.7 9.6 8.4 6.2 6.1 6.1 6.2 230 14.

21 1Q10 2Q10 3Q10 4Q10 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 3Q M17 14% 86% Derivatives Market Activity Quarterly Average Daily Contracts ( 000) ` ` Total Annual Contract (mil) % 85% Open Interest ( 000) Others Crude Palm Oil Futures FMBKLCI Futures 21

Derivatives Market Demography (%) FKLI (%) FCPO 42 37 26 33 37 18 20 19

1 12 1 10 15 21 21 22 41 46 52 44 42 2 28 1 2 28 24 5 23 3 3 34 38 27

24 15 15 20 21 19 15 18 20 18 14 11 2007 2008 2009 2010 2011 2012 2013

9M17 Foreign Institutions Domestic Retail Foreign Institutions Foreign

22 Derivatives Market Demography (%) FKLI (%) FCPO M M17 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 Islamic Capital Market Activity (RM bil) BSAS Quarterly Average Daily Value (RM bil) BSAS Annual Average Daily Value M17 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: Bursa Malaysia and its Group of Companies (the Company) reserve all proprietary rights to the contents of this presentation. Whilst the company endeavors to ensure that the contents in this presentation 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. Copyright Bursa Malaysia Berhad 2017 (30632-P)

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