FY2016 Financial Results: Analyst & Media Briefing

FY2016 Financial Results: Analyst & Media Briefing 3 February 2017 Datuk Seri Tajuddin Atan Chief Executive Officer DRIVING SUSTAINABILITY AND INCLUSIVENESS Rosidah Baharom Chief Financial Officer UNLOCKING THE POTENTIAL OF OUR MARKETPLACE

AGENDA KEY FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE FINANCIAL REVIEW FOCUS AREA & CONCLUSION APPENDICES 2

KEY FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE FINANCIAL HIGHLIGHTS FINANCIAL TRENDS SECURITIES MARKET OVERVIEW DERIVATIVES MARKET OVERVIEW ISLAMIC CAPITAL MARKET OVERVIEW DIVIDENDS 3

Financial Highlights Financial Items 2016 2016 vs. 2015 4Q 2016 4Q 2016 vs. 4Q 2015 Operating Revenue (RM million) Operating Expenses (RM million) 472.7 3.1% 112.5 10.1% 236.2 1.5% 54.8 15.7% PATAMI (RM million) 193.6 2.5% 50.2 0.9% EPS (sen) 36.2 2.7% 9.4 1.1% Cost to Income Ratio (%) 47% 1 percentage point 44% 4 percentage points Annualised ROE (%) 23% 3 percentage points 24% 2 percentage points 2016 vs. 2015: Operating revenue declined by 3% year-on-year due to lower Securities trading revenue. This drop was partially offset by higher revenue from Derivatives Market. Cost to income ratio increased marginally by 1 percentage point to 47%, while ROE declined by 3 percentage points. 4

Financial Trends 2 nd highest Operating Revenue in the last 8 years 56 55 51 49 48 46 46 47 21 25 26 23 13 13 17 18 440 471 488 473 382 389 298 331 99 112 143 151 173 198 199 194 2009 2010 2011 2012 2013 2014 2015 2016 Cost to Income Ratio (%) ROE (%) Operating Revenue (RM mil) PATAMI (RM mil) 5

Securities Market Overview Market performance influenced by overall global and local sentiments Average Daily Value ( ADV ) (OMT)(RM mil) 30 27 Market Capitalisation (RM bil) 1,693 1,642 Fund Raised from New Listings & Secondary Market (RM bil) 11 11 1,991 1,812 21.2 537 464 9.0% 485 371 1.6% 1,695 1,667 17.1 39.6% 12.8 990 956 2015 2016 Velocity (%) ADV of Foreign Institutions ADV of Retail ADV of Domestic Institutions 31 Dec 2015 31 Dec 2016 FBMKLCI Market Capitalisation 12.2 4.1 0.6 2015 2016 No. of New Listing Fund raised from secondary market Fund raised from new listings 6

Derivatives Market Overview FCPO continues to drive growth in ADC Average Daily Contracts ( ADC ) & Volatility 22.1% 21.5% 15.1% 9.4% Open Interest (No. of contract) 30 Sept 2015 234,675 31 Dec 2015 230,376 31 Dec 2016 237,232 26 May 2016 337,267 57,157 57,829 211 241 1% 78% 44,653 46,406 1.2% 80% 22% 12,293 11,183 19% 2015 2016 FBMKLCI Futures Volatility of FBMKLCI Crude Palm Oil Futures Volatility of Crude Palm Oil Prices Others 7

Islamic Capital Market Overview Higher BSAS trades supported by higher foreign participation Bursa Suq Al-Sila ( BSAS ) ADV (RM bil) 109 124 Value of Listed Sukuk (USD bil) 22 23 Market Capitalisation of Shariah Compliant Stocks (RM bil) 74% 74% 53.5 15.2 1.7 16.3 2.9 34.6 29.6 7.2% 13.5 13.4 14.2 54.6% 2.2% 1,086 1,031 20.4 23.9 2015 2016 No. of Trading Participants 2015 2016 No. of Sukuk 31 DEC 2015 31 DEC 2016 No. of Shariah Compliant Stocks (%) Domestic Foreign Domestic Foreign Market Capitalisation of Shariah Compliant Stocks 8

Dividends Maintained high dividend payout to shareholders YTL CORP MAYBANK BRITISH AMERICAN TOBACCO MISC BHD DIGI.COM KLCCP STAPLED CIMB GROUP HAP SENG ASTRO AXIATA GROUP TELEKOM MALAYSIA AMBANK HLDG MAXIS SIME DARBY IJM CORP WESTPORTS HOLDING HONG LEONG BANK RHB BANK PUBLIC BANK PETRONAS GAS HONG LEONG FINANCIAL PETRONAS DAGANGAN PETRONAS CHEMICAL TENAGA NASIONAL KUALA LUMPUR KEPONG GENTING MALAYSIA PPB GROUP IOI CORP IHH HEALTHCARE GENTING BURSA MALAYSIA % Payout 98% * Payout 92% * 7.0 6.0 Dividend Yield Bursa vs. FBMKLCI Constituents @ 31 Dec 2016 Payout 95% 13.5 20.0 20.0 Payout 93% Payout 94% 16.0 18.0 18.0 17.0 5.0 4.0 3.0 2.0 3.8 13.5 16.0 16.0 16.5 17.0 1.0 2012 2013 2014 2015 2016 0.0 Final Dividend (sen) Special Dividend (sen) Interim Dividend (sen) * Exclude special dividends Source: Bloomberg and Bursa Malaysia Proposed final dividend of 17.0 sen. The entitlement and payment dates for the final dividend are 5 April 2017 and 18 April 2017 respectively. 9

FINANCIAL REVIEW FINANCIAL SNAPSHOT OPERATING REVENUE OPERATING EXPENSES 10

Financial Snapshot Marginally lower financial performance, consistent profits Operating Revenue (RM mil) 3.1% Operating Expenses (RM mil) 1.5% 10.1% 487.7 472.7 15.7% 239.7 236.2 125.2 112.5 65.0 54.8 4Q 2015 4Q 2016 2015 2016 4Q 2015 4Q 2016 2015 2016 PATAMI (RM mil) 2.5% Cost to Income Ratio (%) 4 percentage points 1 percentage point 0.9% 198.6 193.6 48 44 46 47 50.6 50.2 4Q 2015 4Q 2016 2015 2016 4Q 2015 4Q 2016 2015 2016 11

Operating Revenue Derivatives trading & non-trading revenue grew y-o-y Total RM487.7 mil Total RM472.7 mil Growth contribution by revenue streams: 5.9 5.9 20.8 33.7 21.0 35.3 38.4 39.0 52.9 53.5 16.8 16.4 86.1 88.7-20.2 487.7 +2.6-0.4 58.6% 3.0% 350.0 2.1% 340.0 +0.6 +0.6 1.2% 360.0 1.6% 380.0 +1.6 4.8% 400.0 (RM mil) +0.2 0.8% 440.0 3.1% 472.7 233.1 212.9 2015 2016 2015 2016 Securities Trading Revenue Derivatives Trading Revenue BSAS Trading Revenue Listing & Issuer Services Depository Services Market Data Member Services & Connectivity Other Operating Revenue* Securities trading revenue decreased mainly due to lower trades registered, which was affected by market conditions and investor sentiment. Derivatives trading revenue increased contributed by higher trade fees, guarantee fees and collateral management fees earned. Market data fees grew as a result of a higher number of subscribers for derivatives market data. Note* - Other operating revenue mainly includes conference & exposition income 12

Operating Expenses Decrease in operating expenses by 1.5% y-o-y Total RM239.7 mil Total RM236.2 mil Movement of expenses: (RM mil) 32.3 34.0 22.4 22.1 18.1 17.3 9.3 10.0 23.7 1.5% 24.2-5.3 +0.7-0.8 +1.7 +0.5-0.3 4.0% 2.1% 7.4% 3.9% 1.2% 5.1% 239.7 236.2 133.9 128.6 2015 2016 Staff costs Depreciation & amortisation Marketing & development IT maintenance Service fees Other operating expenses^ 2015 2016 Staff cost decreased mainly due to lower headcount. Higher other operating expenses mainly due to a one-off consultancy fee. Note^ - Other operating expenses include building maintenance, administrative expenses and CDS expenses. 13

FOCUS AREAS & CONCLUSION Highlights of 2016 Initiatives Focus Areas Moving Forward 14

Highlights of 2016 Initiatives SI 1 Create a More Facilitative TRADING ENVIRONMENT Extended Green Lane Policy to eligible futures brokers & eligible general clearing participants. Enabled multi-currency fixed income instruments in web-based Electronic Trading Platform. SI 2 Facilitate More TRADABLE ALTERNATIVES Launched call and put warrants over the Standard & Poor s 500 Index. Launched enhanced 3-Year, 5-Year and 10-Year Malaysian Government Securities Futures contract. Launched Bursa Malaysia-i - the world's first fully integrated Islamic securities exchange platform. Launched the US Dollar denominated Tin Futures Contract SI 3 Reshape MARKET STRUCTURE & FRAMEWORK Amended Listing Requirements to raise the standards of disclosure of Corporate Governance practices. Launched the Equities Margining Framework. SI 4 REGIONAL MARKETPLACE with Global Access (Centre of ASEAN) Launched FTSE4GOOD ASEAN 5 Index. Signed MoU with Taiwan Stock Exchange to undertake joint study to explore capital market opportunities. Signed MoU with Indonesia Stock Exchange to collaborate on Islamic financial market. 15

Focus Areas Focus 1: Value Extraction Focus 2: Build for the Future LEVERAGE ON ASEAN GROWTH LEVERAGE ON DOMESTIC LIQUIDITY REVIEW MACRO- STRUCTURE REVIEW MARKET FRAMEWORK IMPROVING MICROSTRUCTURE DEVELOP REGIONAL PRESENCE & NEW BUSINESS SI 1 SI 2 SI 3 SI 4 Create a More Facilitative TRADING ENVIRONMENT Facilitate More TRADABLE ALTERNATIVES Reshape MARKET STRUCTURE & FRAMEWORK REGIONAL MARKETPLACE with Global Access (Centre of ASEAN) 16

CONCLUSION Ensuring Fair & Orderly Market Market Recognition Awards & Ranking Global Partnerships & Recognition The Values That We Create Moving Forward 17

Ensuring Fair and Orderly Market (1) Bursa Malaysia continues efforts in ensuring fair and orderly market. We put in place measures and have achieved: 1) Operations 100% uptime for Securities, Derivatives and BSAS trading systems. Conducted industry wide BCP exercises for the three (3) markets. All tests were successfully completed. 2) Technology Awarded Information Security Management System Certificate of ISO 27001 by Cyber Security Malaysia. 3) Market Safeguard Mechanism Circuit Breaker Managed undue and irrational volatility. Risk Protection Securities Market Clearing Guarantee Fund, Derivatives Market Clearing Fund and Depository Compensation Fund. Price Limits Mechanism Static, Dynamic and Last Price Limits. 18

Ensuring Fair and Orderly Market (2) 4) International Standards Securities Market - Observed all Principles for Financial Market Infrastructures (PFMI) issued by CPMI and IOSCO. Derivatives Clearing Observed all relevant PFMIs. 5) Regulation Trading remained fair and orderly. No industry-wide breaches of our business rules. Our brokers Capital Adequacy Ratios are well above the minimum requirement. 99.4% timely submission of financial statements. Improved scores in ASEAN CG Scorecard 2015 due to overall improvement in disclosures by our listed issuers. Analysis of Corporate Governance disclosures in annual reports showed high level of adherence to the Listing Requirements. Efficient capital raising for secondary fund raising-comparable with other markets. 19

Market Recognition Our market is internationally recognised Malaysia ranked by: 2 nd among 6 ASEAN countries in Corporate Governance (CG) assessment 19 th most competitive country in the world (Source: ADB ASEAN CG Scorecard 2013-2014) (Source: IMD Competitiveness Scoreboard 2016) 4 th among 25 countries on Corporate Governance by ACCA & KPMG (Source: KPMG-ACCA Balancing Rules and Flexibility 2014) 4 th among 138 economies for Strength of Investor Protection 25 th most competitive nation 30 th best regulated Securities Market 3 rd among 190 economies for Protecting Minority Investors 23 rd easiest place of doing business (Source: WEF Global Competitiveness Report 2016-2017)) (Source: World Bank Doing Business 2017) 20

Awards and Ranking Our Exchange is internationally recognised Bursa Malaysia ranked by: Excellence Award for Top CG & Performance (Overall) Best Islamic Finance Facilitation Platform Asia (2016) Best Islamic Exchange Asia (2016) Best Islamic Exchange for Bursa Suq Al-Sila performance (2016) Best Interbroker For Islamic Transaction Award (Bursa Suq Al-Sila ) (2016) Excellence Award for Long- Term Value Creation Merit Award for CG Disclosure Merit Award for Best AGM (2016) Best Emerging Exchange of the year (2015) Gold For Innovative BursaMKTPLC Educational Campaign CELEB.TRADR Silver For Influences Under Financial Services Silver For BursaMKTPLC under Financial Services Category ASEAN Top 50 Public-Listed Company ASEAN Top 5 Public-Listed Company Top 3 Domestic Public-Listed Company Malaysia 21

Global Partnerships & Recognition CME Partnership Holds 25% of equity stake in Bursa Malaysia Migration of Malaysian derivatives products to CME Globex DALIAN Collaboration Agreement Bursa Malaysia and Dalian Commodity Exchange Sign Collaboration Agreement On Product Research & Development CFTC Approval Approval from US Commodity Futures Trading Commission (CFTC) to enable Malaysian Futures brokers to deal with US customers Obtained US CFTC approval to attract US-based commodity traders into our Derivatives Market via direct market access FTSE Upgrade CBRC Recognition QDII Malaysia Investment destination for China investors Malaysia promoted to Advanced Emerging Market status in FTSE Global Equity Index Series U.S. SEC Approval Designated Offshore Securities Market recognition to ease trading in Malaysian listed securities & shelf listed bonds by U.S. investors ASEAN Link ASEAN Trading Link connecting Bursa Malaysia, Singapore Exchange and Thailand 22

The Values That We Create A DIVERSE AND RESILIENT MARKET: As one of the largest stock markets in ASEAN, we are responsible for creating a resilient market on the back of quality PLCs and a sustainable market ecosystem. Our diversity is manifested best through the broad base of listed companies in our market. GLOBAL BENCHMARKS FOR CPO: As a leading market for Crude Palm Oil ( CPO ) contracts, Bursa Malaysia is the global benchmarks for CPO settlement price. EFFECTIVE FUNDRAISING CHANNELS: A deep and vibrant pool of liquidity has made Bursa Malaysia the top ASEAN destination for fundraising for the second (2nd) consecutive year. PACESETTER IN THE GLOBAL ISLAMIC CAPITAL MARKET: Our expertise in Islamic Finance has made us a leading specialist and pacesetter in the global Islamic capital markets. ASEAN S MULTINATIONAL MARKETPLACE: As home to some of ASEAN s largest companies with operations throughout the region, Bursa Malaysia is steadily reaching its goal of becoming ASEAN s multinational marketplace. INVESTOR PROTECTION: Bursa Malaysia protects its investors via a sound regulatory framework which has been recognised by international observers. 23

Moving Forward SECURITIES MARKET The Securities Market performance is very much influenced by local and global events. Nonetheless, domestic institutions are expected to continue to provide the liquidity support to the equity market given Malaysia s resilient and strong economic fundamentals. DERIVATIVES MARKET Derivatives Market activities is expected to be influenced by the volatility in commodity prices and the FBM KLCI. ISLAMIC CAPITAL MARKET Transactions on Bursa Suq Al-Sila ("BSAS") are expected to be sustained with the continuous demand for Murabaha contracts to aid liquidity management. Bursa Malaysia-i, the world s first fully integrated Islamic securities exchange platform, is expected to further attract a wider pool of both domestic and foreign investors. The Exchange remains committed and shall continue with its initiatives in ensuring that the Malaysian equity and derivatives markets continue to be sustainable and vibrant. 24

FY2016 Financial Results: Analyst & Media Briefing 3 February 2017 DRIVING SUSTAINABILITY AND INCLUSIVENESS Q & A UNLOCKING THE POTENTIAL OF OUR MARKETPLACE

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 26

Securities Market Trading Activity 23 48 36 28 35 28 31 37 42 Quarterly ADV Traded & Velocity 30 34 37 34 31 27 27 28 28 25 25 30 29 30 28 30 28 29 30 29 27 26 25 1,490 1,266 1,099 1,435 1,209 1,387 1,793 2,161 1,579 1,732 1,341 1,841 1,439 1,595 1,430 1,643 2,308 2,002 1,686 2,196 2,068 2,053 1,901 2,081 1,913 1,933 2,042 1,981 1,842 1,740 1,690 615 1Q09 2Q09 3Q09 4Q09 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 Turnover Velocity (%) Average Daily Value Traded (OMT, RM mil) Annual ADV Traded & Velocity 53 34 32 32 34 34 33 33 30 30 23 25 28 29 27 20 2,179 2,053 1,915 1,991 1,699 1,812 1,454 1,573 1,181 1,019 1,129 874 748 718 350 472 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Turnover Velocity (%) Average Daily Value Traded (OMT, RM mil) 27

Securities Market Trading Participation Retail vs Institution Foreign vs Local 806 806 346 283 369 392 442 354 424 530 464 372 357 496 323 392 437 404 507 492 544 491 34 37 24 33 27 26 23 22 26 23 21 35 37 42 27 27 26 26 26 24 27 27 66 63 76 67 73 74 77 78 74 77 79 65 63 58 73 73 74 74 74 76 73 73 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Retail ADV Traded (RM mil) Retail (%) Institutions (%) Foreign ADV Traded (RM mil) Foreign (%) From 2006 to 2009, the statistics were based on Brokers submission. From 2010 onwards statistics were based on Bursa s internal system. Local (%) 28

Securities Market Foreign Ownership 24.4 24.3 24.1 24.1 24.0 24.0 24.1 23.7 23.4 23.3 23.1 Based on Market Capitalisation (%) 23.1 22.822.8 22.5 22.5 22.322.3 23.0 23.023.0 23.0 23.1 22.8 22.822.8 22.6 22.3 Note: Previously, foreign shareholdings are computed based on the investor s country of incorporation. To be more reflective of the actual foreign shareholdings in the equity market, from January 2016 onward, the foreign shareholdings are computed based on the nationality of investors. On this basis, we have adjusted all the numbers above accordingly. 29

Foreign Inflow/Outflow (RM mil) 10,000 Monthly foreign inflow/outflow from 2011 to 2016 5,000 0-5,000-10,000 2011 TNFI: RM2.0 bil 2012 TNFI: RM13.6 bil 2013 TNFI: RM2.6 bil 2014 TNFO: RM6.9 bil 2015 TNFO: RM19.7 bil 2016 TNFO: RM3.2 bil TNFI: Total Net Foreign Inflow TNFO: Total Net Foreign Outflow (RM mil) 8,000 Monthly foreign inflow/outflow from Dec 2015 to Dec 2016 6,000 4,000 2,000 0-2,000-4,000-6,000-1,193-1,001 432 6,065 428-4,282-1,760 1,021 1,605-315 -450-3,934-972 30

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 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 19% 81% 1% Derivatives Market Activity Quarterly Average Daily Contracts ( 000) 288 283 293 Total Annual Contract (mil) 214 230 237 129 132 115 114 28 24 23 25 239 229 235 237 214 213 218 204 207 230 226 174 196 171 196 196 152 172 162 146 60 62 62 136 58 54 55 56 56 55 50 51 40 42 44 45 46 44 42 42 37 34 35 32 31 66 85 159 4.2 156 125 123 132 6.2 6.1 6.1 6.2 152 8.4 9.6 196 196 14.1 12.5 10.7 14.2 10.8 19% 80% 2.6 2.5 ` ` Open Interest ( 000) Others Crude Palm Oil Futures FMBKLCI Futures 31

Derivatives Market Demography (%) FKLI (%) FCPO 14 3 45 23 6 31 5 37 3 40 3 45 2 42 2 37 2 26 3 33 2 37 2 55 53 54 55 64 14 14 17 27 21 18 6 4 4 20 18 16 18 20 19 20 22 25 22 15 17 1 3 2 1 1 25 15 28 13 1 32 12 1 39 10 35 32 34 15 21 21 48 45 43 40 40 41 46 52 44 42 2 28 1 2 28 24 5 23 3 15 21 26 24 23 27 34 38 27 26 24 19 1 1 17 15 1 15 1 16 19 40 38 35 33 35 31 25 27 36 34 34 36 33 34 31 28 31 19 14 16 16 13 15 15 20 21 19 15 18 20 18 14 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Foreign Institutions Domestic Retail Foreign Institutions Foreign Retail Local Domestic Institutions Local Domestic Institutions Domestic Retail 32

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Islamic Capital Market Activity BSAS Average Daily Value (RM bil) 2.1 2.6 1.6 1.6 2.7 3.0 3.2 1.5 1.4 16.9 16.1 1.2 0.7 0.9 0.2 0.2 0.2 0.3 0.3 0.8 0.9 1.1 1.1 1.3 1.5 1.6 1.8 1.4 1.5 1.5 1.1 1.1 1.0 2.6 2.4 2.7 3.2 3.7 3.7 1.4 5.9 8.5 10.4 12.0 14.4 12.7 12.2 12.6 Local ADV Foreign ADV 33

INVESTOR RELATIONS CONTACT INFORMATION RASMONA ABDUL RAHMAN rasmona@bursamalaysia.com 603-2034 7175 ADRINA CHE AHMAD adrina@bursamalaysia.com 603-2034 7488 RAFIDAH AZIZ rafidahaziz@bursamalaysia.com 603-2034 7262 E-mail : 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 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 2017 www.bursamalaysia.com