Destination of choice for listings and investments in the ... · 1Q 2011 . Financial Results. 19...

1Q 2011 Financial Results19 April 2011

BURSA MALAYSIA BERHADDestination of choice for listings and investments in the region

2

Financial Highlights

Strong Profit Performance 3

Strong Profit Performance

Snapshot 1Q11 1Q10 Δ% 4Q10 Δ%

Operating Revenue (RM mil) 107.8 81.2 33 94.3 14

PAT (RM mil) 41.9 29.0 44 29.8 41

PATAMI (RM mil) 40.5 28.1 44 29.8 36

Ratios 1Q11 1Q10 Δ% 4Q10 Δ%

Net Profit Margin (%) 36.1 33.0 9 29.2 24

Annualised ROE (%) 18.6 13.1 42 14.3 30

Stronger group performance contributed by higher trading volume in securities market and contracts traded in derivatives market

3

Market Performance

Positive Securities Market Momentum 5

Steady Securities Market Progress 6

Increasing Interest in Derivatives Market 7

4

35

2831

3742

1,061 1,0441,150

1,275 1,311

Positive Securities Market MomentumFBMKLCI Hit an All Time High at 1574.49 on 17 Jan 2011

1,53

2

1,28

8

1,48

2

1,74

9

2,23

4

1Q10 2Q10 3Q10 4Q10 1Q11Daily Average Trading Value: OMT + DBT (RM mil)

Turnover Velocity as at 31st March (%)Market Capitalisation as at 31st March (RM bil)

5FBM KLCI Index

1,272.7831 Dec 2009

1,518.9131 Dec 2010

1,545.1331 Mar 2011

1429

9

2009 2010 1Q11

2833

3

2009 2010 1Q11

124

204

115

2009 2010 1Q11

Steady Securities Market Progress

No. of New Structured Warrants

(Incl. CBBCs & put warrants)

Number of IPOs(Incl. 2 REITs in 2010)

Total Funds Raised (RM bil)(From IPO & secondary

offerings)

6

Increasing Interest in the Derivatives MarketFCPO & Total Volume Reach All Time Monthly Highs of 619,326 & 856,791 contracts in March 2011

23,8

89

22,5

17

25,1

11

24,2

55

36,7

85

1Q10 2Q10 3Q10 4Q10 1Q11

128,988114,820 113,565

132,151 136,202

Daily Average Contracts 1Q11 1Q10 Δ% 4Q10 Δ%

FCPO 25,606 15,794 62 17,030 50

FKLI 10,274 7,316 40 7,065 45

Daily Average Contracts (Units) Open Positions

7

Financial Review

Improved Financial Performance 9

Increased Revenue 10

Higher Operating Expenses 11

Sustainable Performance Ratios 12

Strong Reserves 13

8

Improved Financial Performance

Operating Revenue(RM mil)

Other Income(RM mil)

81.2 10

7.8

1Q10 1Q11

6.9 8.3

1Q10 1Q11

48.4 57

.81Q10 1Q11

29.0 41.9

1Q10 1Q11

5.3

7.6

1Q10 1Q11

Operating Expenses(RM mil)

PAT(RM mil)

Earnings Per Share(sen)

33%

20%

19%44%

43%

9

54%25%

12%9% 39.6

8.5

25.9

7.2

57.7

13.0

27.5

9.6

Securities Trading Revenue

Derivatives Trading Revenue

Stable Revenue Other Operating Revenue

8.8 7.8

4.02.7

1.80.7

10.0

7.8

4.5 2.9

1.80.6

Listing Fees Depository Services

Information Services

Broker Services

Access Fee Participants' Fees

Operating Revenue

Increased Revenue Driven by Securities Market

10* Other operating revenue mainly comprises conference fees , interest earned from participants’ contribution and perusal & processing fees.

1Q2011

46% 6% 33%53%

RM107.8 mil in 1Q2011 33% (1Q2010: RM81.2 mil)

• Securities trading revenue increased due topositive market sentiment

• Derivatives revenue increased due toincreased volatility of commodity prices andmigrations to CME Globex

• Stable revenue grew from higher annual listingfees (higher market cap), increase in listing ofstructured warrants & IPOs as well as increasein information services subscribers

• Other operating revenue grew due to higherconference fees (POC) and interest earnedfrom participants’ contribution

Stable Revenue

(RM mil) 1Q10 1Q11

14% 7%13%

Other Operating Revenue*

Securities Trading Revenue

Stable Revenue

Derivatives Trading Revenue

14%

10

`

45%

17%

9%

12%

4%

2% 11%

11

21.5

11.1

4.8 3.6 2.50.5

4.4

25.9

9.9

5.46.8

2.61.0

6.2

• Other OPEX comprises administrative expenses, CDS consumables & other miscellaneous expenses..

1Q2011

Staff Cost

Depreciation & Amortisation(D & A)

Market Development

Technology Charges

Building Management Costs

Professional Fees

Other OPEX

Higher Operating Expenses Talent Investment for Future Growth

(RM mil) 1Q10 1Q11

RM57.8 mil in 1Q2011 19% (1Q2010: RM48.4 mil)

Staff Cost D&A Market Development

Technology Charges

Building Management

Costs

Professional Fees

Other OPEX

20% 11% 12% 40%89% 3% 100%

• Higher staff costs due to increased headcount as well as talent attraction &development.

• Higher technology charges due to Globex service fee charged by CME (RM3 mil) forthe use of Globex electronic trading platform which commenced in September 2010.

• Operating expenses increase was further attributable to a write off of computersoftware, the postage hike in July 2010 which raised the cost of CDS consumables,higher market development expenses and higher consultancy fees.

11

`

33.0

54.0

13.1

36.1

55.6

18.6

Net Profit Margin Operating EBITDA Margin

Return on Equity

12

Sustainable Performance Ratios

(%)

9%

1Q10 1Q11

42%3%

12

`

870

886

1Q10 1Q11

(RM mil)

504

594

1Q10 1Q11

13

Strong Reserves

Shareholders’ Fund

Financial Resources Available for Use

(RM mil)

2%

18%

`

`

13

The Company has sufficient financial resources to cover its Clearing Guarantee Fund commitment, CAPEX and working capital requirements.

14

2011 Focus & Outlook

Key Focus for 2011 15

Positive Prospect & Outlook 16

14

15

StrengthenEquity Market

Expand Derivatives

MarketWiden &

InternationaliseIslamic Market

TO REMAIN COMPETITIVE IN THE REGION

Key Focus for 2011

15

• Increasing PDTs• Collaboration of

ASEAN Exchanges

• More BSASParticipants

• Dual licensing• New Derivatives

Clearing System

Other initiatives will be updated as we progress throughout the year

16

Positive Prospect & Outlook

Barring any adverse developments, we expect improved level of activity in our marketsand financial results for the financial year ending 31 December 2011.

Potential Market Catalysts

Acceleration in the implementation of various economic transformationprogrammes.

Greater M&A activities & government transformation programmes. Prospects for further divestments by government-linked companies.

Bursa remains committed in ensuring markets continues to be sustainable and vibrantdespite increasing volatility from external factors.

Malaysia’s strong economic fundamentals. Liberalisation efforts by the government. Sustained domestic corporate earnings growth attracting portfolio inflows.

Strong and Solid System

ProgressiveDevelopmental

Efforts

We continue to invest in the development of the capital market and theregulatory environment.

And at the same time, putting a close watch on our expenditure.

16

17

Additional Information

Board of Directors & Shareholdings Structure 18Securities Market Trading Activity 19Securities Market Trading Participation 20Securities Market Foreign Ownership 21Derivatives Market Activity 22Derivatives Market Demography 23

17

18

Board of Directors & Shareholdings StructureAs at 31 March 2011

12 Members

7 Independent Non-executive Directors1 Senior Independent Non-Executive

Director (also an INED)

1 Non-Independent Executive Director

3 Public Interest Directors (also independent)

20.6%

79.4%

Foreign

Local

Substantial Shareholders Shareholding by Size

Minister of Finance Inc.

Capital Market Development Fund

19%

19%

Market Capitalisation of Bursa Malaysia : RM4.3 bil (USD1.4 bil)

18

57%

31%40% 39%

20% 23%

34% 32%25%

34%

53%

34% 34% 33%42%

1,924

497 805 911

350 472 748

874 718

1,019

2,179

1,181 1,129 1,403

2,161

-

400

800

1,200

1,600

2,000

2,400

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q2011

RM mil

Annual DATV & Velocity

68%

54%50%

41%46%

31%25%

32%23%

48%

36%28%

35%28% 31%

37%42%

2,610 2,303

2,069 1,751 1,907

1,187 823 854

615

1,490 1,266 1,099 1,435 1,209 1,387

1,566 2,161

-400 800

1,200 1,600 2,000 2,400 2,800

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

RM mil

Securities Market Trading Activity Quarterly DATV & Velocity

Daily Average Trading Value (RM mil) Turnover Velocity

Daily Average Trading Value (RM mil) Turnover Velocity

19

346

806

283 373 378

583

34 3724

3326 27

66 63 76 67 74 73

2006 2007 2008 2009 2010 1Q2011

Securities Market Trading Participation

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

65 63 58

73 73 76

35 37 42 27 27 24

2006 2007 2008 2009 2010 1Q2011

Retail (%)

Institutions (%)

Local (%)

Foreign (%)

Retail DATV (RM mil)

Foreign DATV (RM mil)

357

806

496

305393

519

Retail vs Institutions Foreign vs Local

20

21

Securities Market Foreign Ownership

7.8%

1.9%

0.9%

0.4%

0.1%

13.2%

Singapore

Hong Kong

UK

USA

Mid-East

Others

25.8%

74.2%

Foreign Ownership by Nationality

Foreign Nominees

Based on Market Capitalisation(as at month end)

26.5

25.7

24.1

21.7

20.9

20.7

20.7

20.9

20.4

20.4

20.6

20.8

21.8

21.9

22.0

21.4

Mar2011

%

1.6%China / Taiwan

21

66K

85K

159K

125K

156K

123K131K 136K

2004 2005 2006 2007 2008 2009 2010 1Q11

139K

122K

136K

156K148K

117K142K

124K

136K

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11

22

Derivatives Market Activity

2.6

2.5 4.

2

6.1

6.1

6.2

Annually (Total, million units)

KLCI Futures

Crude Palm Oil Futures Open Position

Others

28%

24K 29

K

24K

70%

Quarterly (Daily Average Contracts 000’)

KLCI Futures

Crude Palm Oil Futures Open Position

Others

22K

2.2

24K

28%

70%25

K23K

28K 37

K

226.

2

Derivatives Market Demography

* Local - A local participant is an individual who has been admitted as a participant in accordance with The Rules, registered with SC andhas the right to trade for himself - all futures contracts listed on the Derivatives Exchange.

31 19 14 16 16 13 15 15 15 21 21

45

4845 43 40

40 41 46 4544 41

3

65

3 32 2

2 2

22

14

23

3137 40

45 4237 38

33 36

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q2011

%

FKLI

LocalsDomestic Retail

Domestic InstitutionsForeign Institutions

40 38 35 33 35 31 25 27 33 34 31

15 2126 24 23

2734 38

24 26 25

2721 18

20 22 25 2214

27 1515

14 14 17 20 18 16 18 2016

2529

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q2011

%

FCPO

LocalsDomestic Retail

Domestic InstitutionsForeign Institutions

23

KOAY LEAN LEEkoayll@bursamalaysia.com

603-2034 7306

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 believedby the Company to be accurate and reliable, neither the Company nor the Presenter make any warranty, express or implied, nor assume any legal liability orresponsibility 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 presentationbooklet and/or to any other third party.

© Bursa Malaysia 2011

INTAN DIYANA TAJUDINIntanDiyana@bursamalaysia.com

603-2034 7049

INVESTOR RELATIONS CONTACT INFORMATION

E-mail : ir@bursamalaysia.comFax : 603-2026 3684

MUHAMMAD ALImuhammad@bursamalaysia.com

603-2034 7673

24