1Q2014 Financial Results

17 April 2014

2

AGENDA

FINANCIAL HIGHLIGHTS & REVIEW

MARKET PERFORMANCE

FOCUS AREA AND CONCLUSION

APPENDICES

3

ROBUST GROWTH

FINANCIAL HIGHLIGHTS & REVIEW

Financial Highlights

Profit and ROE Trend

Operating Revenue

Operating Expenses

4

Financial Highlights A good start to the year despite global challenges

Higher operating revenue for 1Q2014 largely driven by higher securities trading activities.

Higher PATAMI due to higher trading revenues coupled with continuous cost management.

Higher annualised ROE contributed by higher PATAMI and capital management.

Financial Items 1Q2014

1Q2014

vs.

1Q2013

1Q2014

vs.

4Q2013

Operating Revenue (RM million) 115.1 13% 11%

Operating Expenses (RM million) 60.2 10% 8%

PATAMI (RM million) 45.1 18% 33%

EPS (sen) 8.5 18% 33%

Cost to Income Ratio (%) 49 1 percentage point

9 percentage points

Annualised ROE (%) 23 5 percentage points

6 percentage points

1Q2014 vs. 1Q2013:

101.7 122.2

112.0 103.9 115.1

38.2 54.8

46.2 33.9

45.1

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014

5

Profit & ROE Trend Growing sustainable revenue

50 41 46

58 49

18 25

22 17

23

Operating Revenue

(RM mil)

PATAMI

(RM mil)

Cost to Income

Ratio (%)

ROE (%)

101.7 101.7

114.3 114.3 114.7

116.4

114.9 114.9

115.1

13.8 - 1.3 0.5 1.7 0.4 - 2.0

0.3

1Q2013 1Q2014

(RM mil)

43.2 57.0

18.5

17.2 1.3

1.8 11.3

13.0 7.8

7.8 6.5

6.9 7.4

5.4 5.7

6.0

1Q2013 1Q2014

6

Total

RM115.1 mil

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

13%

Market Data

Membership Services & Connectivity

BSAS Trading Revenue

Total

RM101.7 mil

Operating Revenue Revenue bolstered by active trading in securities market

32%

7%

38% 7%

Growth contribution by revenue streams:

15% 7%

Other Operating Revenue*

28%

Growth in securities market revenue contributed by higher trading participation from retail

investors and continued support by domestic institutions.

Lower derivatives trading revenue despite higher trading volume due to lower guarantee and

collateral management fees.

Growth in BSAS trading revenue contributed by higher domestic and foreign participation.

Growth in listing and issuer services revenue due to higher number of new structured warrant

listings and corporate exercises.

Lower revenue from membership services and connectivity due to lower broker services fee and

a revision in Bursa access fee structure.

Note* - Other Operating Revenue mainly includes conference & expo income

7

27.2 32.6

8.8 6.4

3.7 4.0 4.5 5.1 3.8 4.4 6.9

7.7

1Q2013 1Q2014

Total

RM54.9 mil

Total

RM60.2 mil

10%

Staff costs

Depreciation & amortisation

Marketing & development

IT maintenance

Service fees

Other operating expenses^

5.4 - 2.4

0.3 0.6 0.6

0.8

1Q2013 1Q2014

(RM mil)

16% 12% 27% 8%

20%

Operating Expenses Building talent and cost management

Movement of expenses:

54.9 60.2

12%

Increase in staff costs due to talent building and higher headcount in 1Q2014.

Decrease in depreciation arising from a lower investment in new trading systems (BTS2).

Increase in IT maintenance due to onsite maintenance of the new trading system.

Increase in service fees due to higher derivatives contract traded in 1Q2014.

Note^ - Other Operating expenses includes building maintenance, administrative expenses and CDS expenses.

8

STRENGTHENED MARKETPLACE

Market Performance

Securities Market Overview

Derivatives Market Overview

Islamic Market Overview

1,472

1,702 1,719

1Q 2013 4Q 2013 1Q 2014

9

Securities Market Overview Higher trading and secondary market fund raising activities

Average Daily Value (OMT+DBT)

(RM mil)

Market Capitalisation (RM bil) Fund Raised from New Listings &

Secondary Market (RM bil)

1,716

2,330

2,159

1Q 2013 4Q 2013 1Q 2014

28

25

30

Velocity (%) FBMKLCI

1,671.63

1,866.96 1,849.21

2.41

9.21

7.41

1Q 2013 4Q 2013 1Q 2014

No. of New Listing

2

7

2

26%

17%

7% 1%

207%

20%

10

Derivatives Market Overview FCPO contracts hit new high, ADC surpassed 50,000 contracts

Average Daily Contracts (’000)

Crude Palm

Oil Futures FBMKLCI

Futures Others

77%

22% 25%

Open Interest since Migration to Globex®

1/9/10

111,548

26/7/13

258,001

31/12/12

214,065

31/03/14

218,002

1Q 2013 4Q 2013 1Q 2014

45.19

41.54

78% 77%

23% 21%

79%

20%

50.05

20%

11%

1%

1%

3.65

4.67

5.10

1Q 2013 4Q 2013 1Q 2014

9%

33.5

32.9

37.4

1Q 2013 4Q 2013 1Q 2014

11

Islamic Market Overview Continue to gain recognition as a market leader

% of Shari’ah Compliant Stocks No. of Trading Participants

Bursa Suq Al-Sila’ ADV

(RM bil) Market Capitalisation of Shari’ah

Compliant Stocks (RM bil)

No. of Sukuk

Value of Listed Sukuk (USD$ bil)

40%

807

1,029 1,045

1Q 2013 4Q 2013 1Q 2014

88 71 71

29%

19 20 21

11%

14% 2%

71

78 78

FOCUS AREA AND CONCLUSION

12

STRONGER

COLLABORATION

Focus Areas

Achievements in 1Q2014

Going Forward

13

LEVERAGE ON

ASEAN

GROWTH

LEVERAGE ON

DOMESTIC

LIQUIDITY

IMPROVING

MICROSTRUCTURE

Focus 1: Value Extraction Focus 2: Build for the Future

REVIEW

MACRO-

STRUCTURE

REVIEW

MARKET

FRAMEWORK

DEVELOP REGIONAL

PRESENCE &

NEW BUSINESS

Focus Area To establish strong regional presence

14

Achievements in 1Q2014

Recorded improvement in financial performance and across 3 markets.

Securities Market

Listing of new ETF listing – MyETF MSCI Malaysia Islamic Dividend

Increase of available stocks for Securities Borrowing and Lending from 171 to 218

Derivatives Market

Introduced new Participantship Structure for Trading Participants and

Associate Participants to drive the recruitment of new intermediaries and to expand the distribution channel.

Islamic Market

Signed MoU with the Saudi Stock Exchange (Tadawul) to formalise a collaboration to develop cross border activities between both exchanges in capital market

development.

15

Going Forward

Bursa Malaysia will continue to:

Expand product and service offerings.

Further enhance market accessibility for both participants and investors.

Enhance regulatory framework to strengthen our marketplace.

E-initiative to grow retail

participation – with

THERE’S SOMETHING FOR

EVERYONE ON

BURSAMKTPLC

Creating a distinct and

trustworthy marketplace –

the first in the region

ESG Index

Continue to strengthen

Bursa Malaysia as

ASEAN

MULTINATIONAL

MARKETPLACE

Key Deliveries in 2014:

16

www.bursamalaysia.com

Appendices

350 472 748 874 718

1,019

2,179

1,181 1,129 1,454

1,699 1,573 1,915

2,068

-

400

800

1,200

1,600

2,000

2,400

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q2014

RM mil

615

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 1,793

1,643

2,308 2,002

1,686

2,068

-

400

800

1,200

1,600

2,000

2,400

2,800

1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q14

RM mil

20 23

34 32 25

32

53

34 34 33 33 28 30 30

23

48

36

28 35

28 31

37 42

30 34

27 34

27 28 25 28

37 32

25 30

Turnover Velocity (%)

17

Quarterly ADV Traded & Velocity

Average Daily Value Traded (OMT, RM mil)

Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)

Annual ADV Traded & Velocity

Securities Market Trading Activity

66 63

76 67

73 74 77 78

74

34 37 24 33 27 26 23 22 26

2006 2007 2008 2009 2010 2011 2012 2013 YTD Mar

2014

18

65 63 58

73 73 74 74 74 76

35 37 42 27 27 26 26 26 24

2006 2007 2008 2009 2010 2011 2012 2013 YTD Mar 2014

From 2006 to 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based on Bursa’s internal

system.

Retail

(%)

Institutions

(%) Local

(%)

Foreign (%) Retail ADV Traded

(RM mil)

Foreign ADV

Traded (RM mil)

Retail vs Institutions Foreign vs Local

Securities Market Trading Participation

357

806

496

323 392 437 404

507 505

346

806

283 369 392

442 354

424 528

23.6 77.4

19

Foreign Ownership by Nationality (%) Based on Market Capitalisation

(as at month end)

(%)

Singapore

Hong Kong

UK

Foreign Nominees

China

Taiwan

USA

Mid-East

5.6

1.6

2.1

0.4

0.8

0.1

0.1

Others 12.9

Securities Market Foreign Ownership 26.2

21.3

20.4

21.9

22.7

23.9

23.5

23.2

23.1

23.0

2007 2008 2009 2010 2011 2012 2013 Jan-14 Feb-14 Mar-14

50

20

117

142

123

129

115 114

132 136

162

171

152

174

146

172

214

196

213 204

196

218

66

85

159

125

156

123 132

152

214

196

218

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2Q

09

3Q

09

4Q

09

1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

3Q

11

4Q

11

1Q

12

2Q

12

3Q

12

4Q

12

1Q

13

2Q

13

3Q

13

4Q

13

1Q

14

Total Annual Contract (Mil) Quarterly (Average Daily Contracts ’000)

Crude Palm Oil Futures Others Open Interest (’000)

20%

79%

2.6 2.5

4.2

6.2 6.1 6.1 6.2

8.4

FMBKLCI Futures

20%

29

`

`

79%

24 22

24 23 25

28

37

32 34 35

31

40 42 44

9.6

45

10.7

42

46

Derivatives Market Activity

42

1%

3.0

1%

YTD

Mar

2014

21

31 19 14 16 16 13 15 15 20 21 19 17 18 18

45

48

45 43 40 40 41 46 52 44 42 25 28 25

3

6

5 3

3 2

2 2

3

2 2

2 1 3

14 23

31 37 40

45 42 37

26 33 37

56 53 55

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013

(%) FKLI

40 38 35 33 35 31 25 27 36 34 34 36 33 35

15 21 26 24 23 27

34 38

27 26 24 19 17 16

4

6 4

3 2 1 1 1

1 1

1 1

27

21 18 20 22 25 22

15 17 15

13 12 10 12

14 14 17 20 18 16 18 20 19 25 28 32

39 36

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013

(%) FCPO

Local

Domestic Retail

Domestic Institutions

Foreign Institutions Local

Domestic Retail Domestic Institutions

Foreign Institutions Foreign Retail

June –

Dec

2012

June -

Dec

2012

Derivatives Market Demography

YTD

Mar

2014

YTD

Mar

2014

22

Islamic Market Trading Activity

RM bil

0.01 0.10 0.18

0.27 0.35 0.64

1.05 1.11 1.29

1.41 1.55

2.17

2.46

2.99

3.65

3.40

3.79

4.67

5.10

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q14

BSAS Average Daily Value (RM bil)

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 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."

© Bursa Malaysia 2013

Thank You

KOAY LEAN LEE

koayll@bursamalaysia.com

603-2034 7306

MUHAMMAD ALI

muhammad@bursamalaysia.com

603-2034 7673

LIM SIEW CHING

limsiewching@bursamalaysia.com

603-2034 7277

NURHAFIZAWATI HANAFFI

nurhafizawati@bursamalaysia.com

603-2034 7484

INVESTOR RELATIONS CONTACT INFORMATION

E-mail : ir@bursamalaysia.com

Fax : 603-2732 6160