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FY2017 Financial Results
Analyst & Media Briefing
5 February 2018
Datuk Seri Tajuddin AtanChief Executive Officer
Rosidah BaharomChief Financial Officer
2
Agenda
Key Financial Highlights & Market Performance
Financial Review
Highlights & Conclusion
Appendices
3
Key Financial Highlights & Market Performance
Financial Highlights
Financial Trends
Securities Market Overview
Derivatives Market Overview
Islamic Capital Market Overview
Dividends
4
Financial HighlightsGood financial results driven by better performance in Securities Market
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.
Second interim dividend of 18.5 sen, equivalent to 93% payout to be paid on 5th March 2018.
2017 vs. 2016:
Financial Items 2017
2017
vs.
2016
4Q2017
4Q2017
vs.
4Q2016
Operating Revenue (RM million) 522.1 10.4% 130.0 15.5%
Operating Expenses (RM million) 250.4 6.0% 66.4 21.3%
PATAMI (RM million) 223.0 15.2% 55.3 10.2%
EPS (sen) 41.5 14.6% 10.3 9.6%
Cost to Income Ratio 45%2 percentage
points 47%
3 percentage
points
Annualised ROE 26%3 percentage
points 27%
3 percentage
points
5
Financial TrendsRecorded highest operating revenue since listing
Operating Revenue
(RM mil)
PATAMI
(RM mil)Cost to Income
Ratio (%)ROE (%)
331
382 389
440 471
488 473
522
112 143 151
173 198 199 194
223
2010 2011 2012 2013 2014 2015 2016 2017
13
17 18
21
25 26
23
26
55
51 49 48
46 46 47
45
6
Securities Market OverviewHigher trades as market sentiments improved
2732
1,667
1,907
31 DEC 2016 31 DEC 2017
14.4%
Average Daily Value (“ADV”)
(OMT)(RM mil)
Market Capitalisation (RM bil) Fund Raised from New Listings
& Secondary Market (RM bil)
956
1,291
371
525485
498
2016 2017
1,812
2,314
Velocity (%)
1,642
1,797
FBMKLCI
0.6
7.4
12.2
14.5
2016 2017
No. of New Listing
Fund raised from new listings
Fund raised from secondary market
ADV of Domestic Institutions
ADV of Retail
ADV of Foreign Institutions Market Capitalisation
11
13
71.1%
27.7%
21.9
12.8
7
ADC - Crude Palm Oil Futures
Volatility of Crude Palm Oil
Prices
Derivatives Market Overview6% growth in FCPO contracts Y-o-Y
ADC - OthersADC – FBMKLCI Futures
Volatility of FBMKLCI
Average Daily Contracts (“ADC”)
& VolatilityOpen Interest (No. of Contract)
11,183 8,371
46,406 49,051
241 255
2016 2017
22%19%
9%6%
80%
19%
85%
15%
0.3%
57,67757,829
1%
29 Nov
2017
308,084
29 Dec
2017
294,856
1 Sept 2010
111,548
26 May
2016
337,267
8
Islamic Capital Market OverviewBSAS ADV improved with introduction of volume-based pricing scheme
No. of Shariah Compliant
Stocks (%)
No. of Trading Participants
Bursa Suq Al-Sila’ (“BSAS”)
ADV (RM bil)
Market Capitalisation of
Shariah Compliant Stocks
(RM bil)
No. of Sukuk
Value of Listed Sukuk (USD bil)
Domestic Foreign Market Capitalisation of Shariah
Compliant Stocks
Domestic Foreign
13.4 15.1
2.9
4.5
2016 2017
16.3
19.6
20.2%
124
141
23.9 25.4
29.630.6
31 DEC 2016 31 DEC 2017
53.556.0
23
25
4.7%1,031
1,154
31 DEC 2016 31 DEC 2017
11.9%
74%76%
9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Sim
e D
arb
y
Mala
yan B
ankin
g
Bri
tish
Am
eri
can T
obacco
KLC
CP S
taple
d G
roup
DiG
i.C
om
Tenaga N
asi
onal
West
port
s H
old
ings
CIM
B G
roup H
old
ings
AM
MB H
old
ings
HA
P S
eng C
onso
lidate
d
Tele
kom
Mala
ysi
a
Petr
onas
Gas
Ast
ro M
ala
ysi
a H
old
ings
Maxis
YT
L C
orp
Petr
onas
Dagangan
Petr
onas
Chem
icals
Gro
up
MIS
C
Public B
ank
Hong L
eong B
ank
IJM
Corp
RH
B B
ank
Hong L
eong F
inancia
l G
roup
IOI C
orp
Kuala
Lum
pur
Kepong
Genti
ng M
ala
ysi
a
PPB G
roup
Axia
ta G
roup
Genti
ng
IHH
Healt
hcare
BU
RSA
MA
LA
YSIA
Dividend Yield (annualised) – Bursa vs. FBMKLCI Constituents
@ 29 Dec 2017
3.6
Source: Bloomberg and Bursa Malaysia
16.0 16.0 16.5 17.0 20.0
16.0 18.0 18.0 17.018.5
20.020.0
15.0
2013 2014 2015 2016 2017
Payout
98% *
Special Dividend (sen)2nd Interim Dividend
(sen)
* Exclude special dividend
Payout
94%
Payout
92% *
Payout
93%
Declared second interim dividend of 18.5 sen. The entitlement and payment dates are on 21st February and 5th
March 2018 respectively.
1st Interim Dividend
(sen)
DividendsTotal dividend of 53.5 sen was declared
%
Payout
93%*
10
Financial Review
Financial Snapshot
Operating Revenue
Operating Expenses
11
112.5 130.0
472.7522.1
4Q2016 4Q2017 2016 2017
10.4%
Financial SnapshotImproved performance in 2017 results
Operating revenue (RM mil) Operating expenses (RM mil)
PATAMI (RM mil) Cost to income ratio (%)
15.5%
54.866.4
236.2250.4
4Q2016 4Q2017 2016 2017
21.3%
44
47 47
45
4Q2016 4Q2017 2016 2017
3 percentage
points
6.0%
2 percentage
points
50.2 55.3
193.6
223.0
4Q2016 4Q2017 2016 2017
10.2%
15.2%
12
Operating RevenueGrowth from both trading & non-trading revenue
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.
(RM mil)
Total
RM522.1 mil
Total
RM472.7 milGrowth contribution by revenue streams:
472.7 21.9%
9.2%3.7% 15.4%
8.6% 2.2% 1.9% 4.4% 522.1
+46.7 -8.1
-0.6+8.3
+3.4 -0.8 +0.4 +0.1
2016 2017
Securities Trading Revenue
Derivatives Trading Revenue
Listing & Issuer Services
Depository Services
Market Data
Member Services & Connectivity
BSAS Trading Revenue
Conference Fee & Exhibition Related Income
212.9259.6
88.7
80.616.4
15.853.5
61.839.0
42.435.3
34.521.0
21.4
5.9
6.0
2016 2017
10.4%
13
Total
RM236.2 milTotal
RM250.4 mil
Operating ExpensesHigher cost in line with growth in Operating Revenue
Note^ - Other operating expenses include building maintenance, administrative expenses and CDS 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.
Staff costs
Depreciation & amortisation
Marketing & development
IT maintenance
Service fees
Other operating expenses^
128.6 137.5
24.223.8
10.011.417.319.6
22.1
23.4
34.0
34.7
2016 2017
6.0%
(RM mil)
Movement of expenses:
236.2
250.4
+8.9 -0.4+1.4
+2.3
+0.7
2016 2017
+1.3
7.0%
1.8% 14.2%
12.9%
5.9%
2.1%
14
Highlights & Conclusion
Highlights of 2017 Initiatives
Moving Forward
15
Highlights of 2017 Initiatives
Create a More Facilitative
TRADING ENVIRONMENT
SI 1
REGIONAL MARKETPLACE
with Global Access
(Centre of ASEAN)
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
Facilitate More
TRADABLE ALTERNATIVES
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
Reshape
MARKET STRUCTURE &
FRAMEWORK
SI 2
SI 3
SI 4
Signed MoU with the Shanghai Stock Exchange to explore potential ways to improve
visibility and accessibility to market participants in Malaysia and China
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 2018.
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 2018.
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.
17
2017 Financial Results Analyst & Media Briefing
Q&A
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
19
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
2,068 2,053 2,196
1,901 2,081
1,913 1,933 2,042 1,981
1,842 1,740 1,690
2,378
2,621
1,951
2,316
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
35
2831
3742
3034
27
34
27 2825
28
3731
2530 29 30 28 30 28 29 30 29 27 26 25
34 35
2631
53
34 34 33 3328 30 29 30 27
32
2,179
1,181 1,129 1,454
1,699 1,573 1,915
2,053 1,991 1,812
2,314
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Turnover Velocity (%)
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
20
806
283 369 392
442 354
424 530
464 372
525
63
7667
73 74 77 7874 77 79 77
37 24 33 27 26 23 22 26 23 21 23
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
6358
73 73 74 74 74 76 73 7378
37 42 27 27 26 26 26 24 27 27 22
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
From 2007 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 ADVTraded (RM mil)
Foreign ADV
Traded (RM mil)
Retail vs. Institution Foreign vs. Local
Securities Market Trading Participation
806
496
323 392 437 404
507 492 544
491 506
21
Securities Market Foreign Ownership
22.3
23.1
24.4
24.0
24.3
22.8
22.3
22.5
23.023.0 23.022.8
23.023.1
22.822.8
22.6
22.322.322.322.4
22.7
22.923.0
23.423.4
23.323.3
23.123.2
Based on Market Capitalisation (%)
22
-10,000
-5,000
0
5,000
10,000
2015
TNFO: RM19.7 bil
2012
TNFI: RM13.6 bil
2013
TNFI: RM2.6 bil2014
TNFO: RM6.9 bil
TNFI: Total Net Foreign Inflow
(RM mil)
TNFO: Total Net Foreign Outflow
Foreign Inflow/Outflow
Monthly foreign inflow/outflow from 2012 to 2017
-972
420942
4,355
2,610
1,977
359 419
-241-738
-231 -15
959
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000Monthly foreign inflow/outflow from Dec 2016 to Dec 2017(RM mil)
2016
TNFO: RM3.2 bil
2017
TNFI: RM10.8 bil
23
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
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
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
15
%
129
115 114
132
136
162
171
152
174
146
172
214
196
213204
196
218
239
288
196
207
229235
230
283293
226
237
262263
261
295
40
Quarterly Average Daily Contracts (’000)
31
42
35
60
Total Annual Contract (mil)
Crude Palm Oil FuturesOthersOpen Interest (’000)
15%
85%
6.2 6.1 6.1 6.2
8.4
9.6
FBMKLCI Futures
37
`
`
85
%3234
4445
42
4642
10.7
50
12.5
44
54
Derivatives Market Activity
55
14.2
62
51
62
56
14.0
5856
62
55
as
14.1
2325
28
57 57
24
54
125
156
123132
152
214196 196
230 237
295
24
15 15 20 21 19 15 18 20 18 14 11
4146
5244
42
2828 24
23
1918
2
2
3
22
21 2
5
33
4237
2633
37
55 53 54 55
6468
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(%)FKLI
25 27
36 34 34 36 33 34 31 2823
3438
2726 24 19
17 1515
1620
11
11
1 11
1
22 15 17
1513
12
10 15 2121 23
18 20 1925 28
3239
35 32 34 33
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(%)FCPO
1
Local
Domestic Retail
Domestic
Institutions
Foreign Institutions Local
Domestic RetailDomestic
Institutions
Foreign Institutions Foreign Retail
Derivatives Market Demography
25
0.9 1.6 2.75.5
13.5 13.4 15.1
0.2 0.71.2
1.4
1.7 2.9
4.5
2011 2012 2013 2014 2015 2016 2017
BSAS Annual Average Daily Value
Local ADV Foreign ADV
1.22.3 3.9
6.9
15.2 16.319.6
13.3
(RM bil)
BSAS ADV (RM bil)
13.5
0.9
0.8 0.9 1.1 1.1 1.3 1.5 1.6 1.8 2.6 2.4 2.7 3.2 3.7 3.7 5.9
8.5 10.4
12.0 14.4
16.9 16.1
12.7 12.2 12.6 13.6 15.1 15.5 16.1
0.2 0.2 0.2 0.3 0.3 0.7 0.9 1.2 1.1 1.0 1.1 1.5 1.4 1.5
1.4
1.4
1.5 1.6
1.6
2.1 2.6
2.7 3.0 3.2 3.8
3.7 4.9
5.6
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
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
3Q
17
4Q
17
BSAS Quarterly Average Daily Value(RM bil)
Islamic Capital Market Activity
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)
www.bursamalaysia.com
RASMONA ABDUL RAHMAN
rasmona@bursamalaysia.com
603-2034 7175
E-mail : ir@bursamalaysia.com
RAFIDAH AZIZ
rafidahaziz@bursamalaysia.com
603-2034 7262
ADAM ISKANDAR AHMAD ZAHAR
adamiskandar@bursamalaysia.com
603-2034 7351
INVESTOR RELATIONS CONTACT INFORMATION
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