FY2017 Financial Results Analyst & Media Briefing

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1 5 February 2018 FY2017 Financial Results Analyst & Media Briefing Datuk Seri Tajuddin Atan Chief Executive Officer Rosidah Baharom Chief Financial Officer

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

3 Key Financial Highlights & Market Performance Financial Highlights Financial Trends Securities Market Overview Derivatives Market Overview Islamic Capital Market Overview Dividends 3

4 Financial Highlights Good financial results driven by better performance in Securities Market Financial Items vs Q2017 4Q2017 vs. 4Q2016 Operating Revenue (RM million) % % Operating Expenses (RM million) % % PATAMI (RM million) % % EPS (sen) % % Cost to Income Ratio 45% Annualised ROE 26% 2 percentage points 3 percentage points 2017 vs. 2016: 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 2 and 3 percentage points to 45% and 26% respectively. 47% 27% 3 percentage points 3 percentage points Second interim dividend of 18.5 sen, equivalent to 93% payout to be paid on 5 th March

Financial Trends Recorded highest operating revenue since listing 55 51 49 48 46 46 47 45 21 25 26 23 26 13 17 382 389 18 440 471 488 473 522 331

5 Financial Trends Recorded highest operating revenue since listing Cost to Income Ratio (%) ROE (%) Operating Revenue (RM mil) PATAMI (RM mil) 5

6 Securities Market Overview Higher trades as market sentiments improved Average Daily Value ( ADV ) (OMT)(RM mil) Market Capitalisation (RM bil) Fund Raised from New Listings & Secondary Market (RM bil) ,642 1, , , % % 1, ,291 1, % DEC DEC 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 6% growth in FCPO contracts Y-o-Y Average Daily Contracts ( ADC ) & Volatility 22% 19% 9% 6% Open Interest (No. of Contract) 26 May , Nov , Dec ,856 57,829 57,677 1 Sept ,548 1% % 85% 46, % 49,051 19% 11,183 8,371 15% 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 with introduction of volume-based pricing scheme Bursa Suq Al-Sila ( BSAS ) ADV (RM bil) 124 141 Value of Listed Sukuk (USD bil) 25 23 56.0 53.

8 Islamic Capital Market Overview BSAS ADV improved with introduction of volume-based pricing scheme Bursa Suq Al-Sila ( BSAS ) ADV (RM bil) Value of Listed Sukuk (USD bil) Market Capitalisation of Shariah Compliant Stocks (RM bil) 74% 76% % 4.7% 1, % 1, No. of Trading Participants Domestic Foreign 31 DEC DEC 2017 No. of Sukuk Domestic Foreign 31 DEC DEC 2017 No. of Shariah Compliant Stocks (%) Market Capitalisation of Shariah Compliant Stocks 8

Sime Darby Malayan Banking British American Tobacco KLCCP Stapled Group DiGi.

Dagangan Petronas Chemicals Group MISC Public Bank Hong Leong Bank IJM Corp RHB Bank Hong Leong Financial Group IOI Corp Kuala Lumpur Kepong Genting Malaysia PPB Group Axiata

0 Payout 93%* 15.0 18.5 % 9.0 8.0 7.0 6.0 5.0 4.0 3.0 Dividend Yield (annualised) Bursa vs. FBMKLCI Constituents @ 29 Dec 2017 3.6 16.0 16.0 16.5 17.0 20.0 2.0 1.0 2013 2014 2015 2016 2017 0.

9 Sime Darby Malayan Banking British American Tobacco KLCCP Stapled Group DiGi.Com Tenaga Nasional Westports Holdings CIMB Group Holdings AMMB Holdings HAP Seng Consolidated Telekom Malaysia Petronas Gas Astro Malaysia Holdings Maxis YTL Corp Petronas Dagangan Petronas Chemicals Group MISC Public Bank Hong Leong Bank IJM Corp RHB Bank Hong Leong Financial Group IOI Corp Kuala Lumpur Kepong Genting Malaysia PPB Group Axiata Group Genting IHH Healthcare BURSA MALAYSIA Dividends Total dividend of 53.5 sen was declared Payout 98% * 20.0 Payout 92% * 20.0 Payout 93% Payout 94% Payout 93%* % Dividend Yield (annualised) Bursa vs. FBMKLCI 29 Dec nd Interim Dividend (sen) Special Dividend (sen) 1st Interim Dividend (sen) * Exclude special dividend Source: Bloomberg and Bursa Malaysia Declared second interim dividend of 18.5 sen. The entitlement and payment dates are on 21 st February and 5 th March 2018 respectively. 9

10 Financial Review Financial Snapshot Operating Revenue Operating Expenses 10

Financial Snapshot Improved performance in 2017 results Operating revenue (RM mil) 10.4% Operating expenses (RM mil) 6.0% 472.7 522.1 236.2 250.4 15.5% 21.3% 112.5 130.0 54.8 66.

11 Financial Snapshot Improved performance in 2017 results Operating revenue (RM mil) 10.4% Operating expenses (RM mil) 6.0% % 21.3% Q2016 4Q Q2016 4Q PATAMI (RM mil) Cost to income ratio (%) % percentage points percentage points % Q2016 4Q Q2016 4Q

Operating Revenue Growth from both trading & non-trading revenue 5.9 Total RM472.7 mil 21.0 35.3 39.0 53.5 16.4 88.7 10.4% 6.0 Total RM522.1 mil 21.4 34.5 42.4 61.8 15.8 80.

9% 2016 2017 2016 2017 Securities Trading Revenue Derivatives Trading Revenue BSAS Trading Revenue Listing & Issuer Services Depository Services Market Data Member Services & Connectivity Conference

12 Operating Revenue Growth from both trading & non-trading revenue 5.9 Total RM472.7 mil % 6.0 Total RM522.1 mil Growth contribution by revenue streams: % % 15.4% % 2.2% 1.9% (RM mil) 4.4% % 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. Higher Listing & Issuer Services due to larger IPOs and higher number of structured warrants and corporate exercises. Lower Derivatives Trading Revenue due to revision in guarantee fee and lower number of FKLI contracts traded. Lower BSAS Trading Revenue despite growth in its ADV due to volume discount incentives given. 12

Operating Expenses Higher cost in line with growth in Operating Revenue Total RM236.2 mil Total RM250.4 mil Movement of expenses: (RM mil) 34.0 22.1 17.3 10.0 24.2 6.0% 34.7 23.4 19.6 11.4 23.8 +8.

0% 2016 2017 2016 2017 Staff costs Depreciation & amortisation Marketing & development IT maintenance Service fees Other operating expenses^ Higher staff cost due to salary increment and higher

13 Operating Expenses Higher cost in line with growth in Operating Revenue Total RM236.2 mil Total RM250.4 mil Movement of expenses: (RM mil) % % 14.2% % % % % Staff costs Depreciation & amortisation Marketing & development IT maintenance Service fees Other operating expenses^ Higher staff cost due to salary increment and higher provision for variable staff costs. Higher marketing and development expenses incurred as more marketing and engagement activities were carried out this year. Increase in IT maintenance from new and renewal of maintenance contracts. Increase in service fees due to higher exchange rate. Note^ - Other operating expenses include building maintenance, administrative expenses and CDS expenses. 13

14 Highlights & Conclusion Highlights of 2017 Initiatives Moving Forward 14

15 Highlights of 2017 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 Organised inaugural Shariah Investing Forum 2017 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 Hosted inaugural Shariah Investing Fair 2017 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 Real Estate Investment Trust Index Launched Islamic Securities Selling and Buying Negotiated Transaction (ISSBNT) framework Launched Tradeplus Shariah Gold Tracker ETF Introduced new trading features to enhance flexibility in trading strategies 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 15

16 Moving Forward SECURITIES MARKET The Securities Market segment is expected to remain resilient, given the recent economic data and equity market performance, strengthening of the Ringgit and expected positive corporate earnings. Trading volatilities however, may be influenced by local and external factors, such as geopolitical developments and the tightening of monetary policies in major economies in DERIVATIVES MARKET Volatility in commodity prices and the underlying equity market will continue to affect hedging and trading activities of the FCPO and FKLI contracts. ISLAMIC CAPITAL MARKET The introduction of Islamic Securities Selling and Buying Negotiated Transaction, the world s first Shariah-compliant alternative to Securities, Borrowing and Lending, will complement the efforts to promote Shariah-compliant investing on Bursa Malaysia-i platform as well as to add vibrancy to the market. Bursa Suq Al-Sila, on the other hand, will continue its reach into new regions in Bursa Malaysia will continue with its initiatives to enhance the breadth and depth of the ecosystem, amongst others, through the digitalisation of services, liberalisation of rules framework and greater diversification of the investor base to ensure that the Malaysian equity and derivatives markets are attractive and vibrant. 16

17 2017 Financial Results Analyst & Media Briefing Q&A 17

18 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 18

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

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

Average Daily Value Traded (OMT, RM mil) 53 Annual ADV Traded & Velocity 34 34 33 33 28 30 29 30 27 32 2,179 1,181 1,129 1,454 1,699

19 Securities Market Trading Activity Quarterly ADV Traded & Velocity ,621 2,308 2,378 2,161 2,002 2,068 2,053 2,196 2,316 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 4Q17 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, Turnover Velocity (%) Average Daily Value Traded (OMT, RM mil) 19

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011

544 491 506 37 24 33 27 26 23 22 26 23 21 23 37 42 27 27 26 26 26 24 27 27 22 63

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

20 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. 20 Local (%)

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

22 Foreign Inflow/Outflow Monthly foreign inflow/outflow from 2012 to 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 2017 TNFI: RM10.8 bil TNFI: Total Net Foreign Inflow TNFO: Total Net Foreign Outflow (RM mil) 5,000 4,000 Monthly foreign inflow/outflow from Dec 2016 to Dec ,355 3,000 2,000 2,610 1,977 1, ,000-2,

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

2011 2012 2013 2014 2015 2016 2017 15% 15% 85% 85% Derivatives Market Activity 129 132

42 40 37 35 32 34 31 172 196 213 204 196 44 45 46 42 42 239 50 288 218 44 229 235 230 207

Annual Contract (mil) 214 196 196 156 152 125 132 123 12.5 10.7 9.6 8.4 6.2 6.1 6.

23 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 4Q % 15% 85% 85% Derivatives Market Activity Quarterly Average Daily Contracts ( 000) Total Annual Contract (mil) ` ` Open Interest ( 000) Others Crude Palm Oil Futures FBMKLCI Futures 23

Derivatives Market Demography (%) FKLI (%) FCPO

2 2 3 2 2 55 53 54 55 64 68 22 1 15 17 1 15 13

28 24 5 23 3 3 34 38 27 26 24 19 1 1 17 15 1 15

23 15 15 20 21 19 15 18 20 18 14 11 2007 2008

2007 2008 Foreign Institutions Domestic Retail

24 Derivatives Market Demography (%) FKLI (%) FCPO Foreign Institutions Domestic Retail Foreign Institutions Foreign Retail Local Domestic Institutions Local Domestic Institutions Domestic Retail 24

25 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 Islamic Capital Market Activity (RM bil) BSAS Quarterly Average Daily Value (RM bil) BSAS Annual Average Daily Value Local ADV Foreign ADV BSAS ADV (RM bil) 25

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

26 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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