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3Q 2012 Financial Performance
19 October 2012
Highlights & Market Performance
2
We remain accessible
Financial Highlights 3
Securities Market Overview 4
Derivatives Market Overview 5
Islamic Market Overview 6
3
Operating Revenue PATAMI EPS
Cost to Income Ratio ROE
RM293.9 mil RM115.8 mil 21.8 sen 48.5 % 18.1 %
1% 1% 3% 1% 3%
Y-o-Y comparison
9M12 Operating Revenue decreased by 1% Y-o-Y due to the decrease of securities trading revenue impacted by the weak global economy.
Improvement of 9M12 PATAMI and Cost to Income Ratio due to increase in stable revenue and lower expenses.
Financial Highlights Sustaining momentum through growth in stable revenue, derivatives and Islamic markets
9M11 9M12 3Q12
28
9M11 9M12 3Q12
26 14
35
30
Average Daily Value (RM billion)
Velocity (%) FBMKLCI No. of New Listing
Market Capitalisation (RM trillion) Fund Raised for New Listing & Secondary Market (RM billion)
1.91
12.87
1.30
(30/9/11) 1,387.13
4
10% 21%
1.42
1.17 8.96
22.83
1.72
77%
Securities Market Overview FBMKLCI hits a new high of 1,663 on 9 October 2012
6
1.68
(30/9/12) 1,636.66
30 Sept 2011 30 Sept 2012
3Q12 9M11 9M12
5
Average Daily Contracts (000’)
20%
80%
Crude Palm Oil Futures FMBKLCI Futures
34.37
37.97 42.23
Derivatives Market Overview Volatility drives interest in FCPO to the new height
Open Interest since Migration to Globex®
Others
1/9/10 96,678
Peak on 28/2/12 199,215 30/9/12
172,239
10%
75% 70%
24% 29%
847 825
9M11 9M12 3Q12
47 65 89 89
19 20
Sukuk Listing (USD$ bil)
No. of Sukuk
Bursa Suq Al-Sila’ ADV Commodity Traded
(RM bil)
1.15
2.46
No. of Trading Participants % of Shari’ah compliant Stocks
Number of Shari’ah Compliant Stocks
2.06
18% 79%
3%
Islamic Market Overview Bursa Suq Al-Sila’ gaining momentum & growth is on track
6
28.4
33.6
65
30 Sept 2011 30 Sept 2012 30 Sept 2011 30 Sept 2012
DEVELOPMENT & STRATEGY Remaining Attractive 8
ASEAN Trading Link Went Live 9
Corporate Governance 10
Our Strategic Intents 11 - 12
Plans To Grow Our Business 13
7
We are a progressive Exchange
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0 M
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Hon
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ng
Sing
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e
Aus
tral
ia
Taiw
an
Indo
nesi
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Phili
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Thai
land
Toky
o
Fund raised (USD bil) from IPO’s YTD September 2012
RM 18.3 bil
Remaining Attractive Strong IPO activities with large listings
Source: WFE
8
(USD 5.8 bil)
Felda GV raised RM9.9 bil (YTD 3rd largest IPO in the world) IHH raised RM6.3 bil (YTD 4th largest IPO in the world)
ASEAN Trading Link
ASEAN Trading Link Went Live Connecting You to 3 ASEAN Exchanges for a Start
2,254 listed companies
Malaysia, Singapore & Thailand
are linked now
USD1.4 trillion market capitalisation,
70% of Asean market cap
9
10
CG Rating – By Asia Corporate Governance Association Malaysia has significantly improved its ranking from 6th to 4th place out of 11 countries in Asia.
Bursa Malaysia as a listed company is included in the list of "Top 50 CG ranking of mid/small caps in Asia Pacific (< US 10b market cap)
Comments from the report on Malaysia includes:
Significant progress on our PLCs’ CG Culture – companies taking more interest in improving CG practices;
Has consistently increased in CG scores;
Have well-established eco-systems supporting director training and board development - far more advanced and/or independent than China, Japan, Korea or Taiwan;
Improvements in CG rules over the past two years;
Both financial and non-financial reporting standards have improved. Non-financial reporting standards got a boost because of various Bursa initiatives i.e. Business Sustainability Programme for Malaysian corporate and Corporate Disclosure Guide;
Increase in enforcement actions against brokers, listed companies and their directors;
CORPORATE GOVERNANCE Higher ACGA Ranking
11
Our Strategic Intents Aligning Q3 initiatives with our strategy
B U I L D I N G A C O M P E T I T I V E M A R K E T P L A C E
F O U R S T R AT E G I C I N T E N T S
SI 1
SI 2
New Bursa Malaysia Website
Central Matching System Enhancement for Straight Through Processing
BTS New Trading Features
eCash payment framework
Bursa Malaysia Derivatives won two awards: - Best Technology Innovation by an Asian
Exchange - Runner up for the Asian Derivatives
Exchange of the Year
Options on CPO Futures (OCPO)
Create a More Facilitative TRADING ENVIRONMENT
Facilitate More TRADABLE ALTERNATIVES
12
Our Strategic Intents Aligning Q3 initiatives with our strategy
B U I L D I N G A C O M P E T I T I V E M A R K E T P L A C E
F O U R S T R AT E G I C I N T E N T S
SI 3
Dual Licensing Fast Track Programme - Eligibility requirement further ease with
minimum years experience reduced from 10 to 5 years
SI 4 ASEAN Link
Reshape MARKET STRUCTURE & FRAMEWORK
REGIONAL MARKETPLACE with Global Access (Centre of ASEAN)
Facilitate More TRADABLE ALTERNATIVES
Reshape MARKET STRUCTURE & FRAMEWORK
13
Plans To Grow Our Business Ongoing initiatives to build a competitive market place
Exchange Traded Bonds /
Sukuk
New Surveillance
System ETFs
Financial Review
Financial Snapshot 15
Operating Revenue 16
Stable Revenue 17
Operating Expenses 18
14
We believe in being responsible
15
49.5 48.7 50.1 48.5
3Q 2011 3Q 2012 9M2011 9M2012
Cost-to-income ratio (%)
53.1 51.7
162.7 156.6
3Q 2011 3Q 2012 9M2011 9M2012
Operating expenses (RM mil)
38.6 37.0
114.8 115.8
3Q 2011 3Q 2012 9M2011 9M2012
PATAMI (RM mil)
Financial Snapshot Remained resilient
96.1 96.7
296.5 293.9
3Q 2011 3Q 2012 9M2011 9M2012
Operating revenue (RM mil)
1%
1% 4%
3%
1% 2% 3%
4%
296.5
281.1 281.1 283.0
292.4 293.9
- 15.4
+ 1.9
+ 9.4 + 1.5
9M 2011 9M 2012
Growth contribution by revenue streams:
11%
16
Commentaries
(RM mil)
Operating Revenue Growth in other revenues offset impact of decline in securities trading revenue
152.7 137.3
38.7 40.6
85.6 95.0
19.5 21.0
9M 2011 9M 2012
Total RM296.5 mil
Total RM293.9 mil
Securities Trading Revenue
Derivatives Trading Revenue
Stable Revenue
Other Operating Revenue
1%
10% 5%
8%
• Drop in securities trading revenue caused by lower ADV of RM1.72 bil compared to RM1.91 bil in 9M11.
• Increase in derivatives trading revenue attributed to a higher contracts traded of 6.95 mil from 6.32 mil in 9M11.
• Increase in stable revenue due to higher listing fees, depository services fee, information sales and access fees.
85.6
95.0 + 2.2
+ 1.3
+3.4
+2.3 + 0.3 - 0.1
9M 2011 9M 2012
Growth contribution by revenue streams:
23%
29.4 31.6
25.2 26.5
14.5 17.9
5.5
7.8 8.8
9.1 2.2
2.1
9M 2011 9M 2012
17
Total RM85.6 mil
Total RM95.0 mil
11%
Commentaries
Listing fees
Depository services
Information services
Access fees
Broker services & co-location inc.
Participants fees
(RM mil)
8%
5%
41%
8% 4%
Stable Revenue Recorded healthy growth
• Listing fees increased due to higher number of structured warrants.
• Depository services fee increase due to larger IPOs.
• Information services fee increased as a result of a revision of rates in January 2012.
• Higher access fees due to higher number of direct market access subscribers.
79.0 75.2
29.5 25.2
8.2 7.7
11.7 12.2
8.6 9.4
25.7 26.9
9M 2011 9M 2012
162.7
156.6
- 3.8
- 4.3
-0.5 + 0.5 + 0.8
+ 1.2
9M 2011 9M 2012
Movement of expenses:
18
Total RM162.7 mil
Total RM156.6 mil
5%
5%
14%
Commentaries
4% 8% 5%
4%
Staff costs
Depreciation & amortisation
Marketing & development
IT maintenance
Service fees
Other operating expenses
(RM mil)
Operating Expenses Managed, in light of economic environment
• Reduction in staff costs due to movement in headcount.
• Lower depreciation and amortisation as certain IT assets were fully depreciated.
• Increase in service fees as a result of increase in derivatives trade volumes in 9M12 compared to 9M11.
• Increase in other operating expenses due to higher professional fees.
Prospects & Targets
We continue to innovate
Prospects & Targets 20
19
Prospects and Targets Securities Market
Despite the increasing challenging external environment, we expect the country's economic prospects and business fundamentals to remain satisfactory, supported by the various Government stimulus measures and interest spurred by the listing of large IPOs. National Budget 2013 will continue to sustain our country's domestic demand and economic growth, and is supportive of the capital market growth. The announcement of incentives for ETBS will further stimulate trading and creating greater liquidity for these new products. New business trust structure will add to the diversity of product offerings.
Derivatives Market
Continue to widen our distribution channels and educate the domestic marketplace. Global outreach to expand visibility and accessibility of the Malaysian derivatives market in the international marketplace. Expected to continue to benefit from the volatility and uncertainty seen in global commodities and securities markets for the balance of the year.
Targets
The Board is cognisant of the impact of the global economic climate and anticipated that it will be a challenge to achieve all the mid-term targets of Bursa. Nevertheless, we will continue to build our competitiveness and address the needs of our capital market to achieve our long-term goals.
20
Additional Information
Securities Market Trading Activity 22
Securities Market Trading Participation 23 Securities Market Foreign Ownership 24
Positive Foreign Inflows 25
Derivatives Market Activity 26
Derivatives Market Demography 27
21
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
1,793 2,161
1,579 1,732 1,341
1,841 1,439 1,595
-
400
800
1,200
1,600
2,000
2,400
2,800
1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 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
RM mil
1,924
497 805 911
350 472 748
874 718
1,019
2,179
1,181 1,129 1,454
1,699 1,621
-
400
800
1,200
1,600
2,000
2,400
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 9M 2012
RM mil
68 54 50
41 46 31 25 32
23
48 36
28 35 28 31 37 42 30 34 27 34 27 28
Securities Market Trading Activity
22
57
31 40 39
20 23 34 32
25 32
53
34 34 33 33 30
Quarterly ADV Traded & Velocity
Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)
Average Daily Value Traded (OMT, RM mil) Turnover Velocity (%)
Annual ADV Traded & Velocity
Securities Market Trading Participation
23
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 74 75
35 37 42 27 27 26 25
2006 2007 2008 2009 2010 2011 9M 2012
66 63 76
67 73 74 76
34 37 24 33 27 26 24
2006 2007 2008 2009 2010 2011 9M 2012
357
806
496 323
392 437 398
Retail (%)
Institutions (%)
Local (%)
Foreign (%)
Retail ADV Traded (RM mil)
Foreign ADV Traded (RM mil)
Retail vs Institutions Foreign vs Local
346
806
283 369 392 442 389
Securities Market Foreign Ownership
Singapore Hong Kong UK
24.6 75.4
Foreign Ownership by Nationality (%)
Foreign Nominees
Based on Market Capitalisation (as at month end)
20.4
20.6
20.8
21.8
21.9
22.0
21.7
22.
1
22.2
22.7
22.4
23.
0
23.3
23.5
23.6
(%)
China/Taiwan USA Mid-East Others
6.5 1.9 2.6 1.3 0.1 0.2 12.0
24
25
(RM bil)
(5.00)
(4.00)
(3.00)
(2.00)
(1.00)
-
1.00
2.00
3.00
4.00
5.00 Ju
n-11
Jul-1
1
Aug
-11
Sep
-11
Oct
-11
Nov
-11
Dec
-11
Jan-
12
Feb-
12
Mar
-12
Apr
-12
May
-12
Jun-
12
Jul-1
2
Aug
-12
Sep
-12
Local Net Purchases/Sales Foreign Net Purchases/Sales
Positive Foreign Inflows
117
142
123 129
115 114
132 136
162 171
152
174
146
172
26
Derivatives Market Activity
Total Annual Contract (Million)
FBMKLCI Futures
Crude Palm Oil Futures
Others
Open Interest (000’)
Quarterly (Average Daily Contracts 000’)
FMBKLCI Futures
Crude Palm Oil Futures
Others
Open Interest (000’)
24%
75
%
2.6 2.5
4.2
6.2 6.1 6.1 6.2
8.4
26
7.0
20%
29
``
80%
24 22
24 23 25
28
37
32 34 35
31
40 42 1%
66
85
159
125
156
123 132
152
172
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 and has the right to trade for himself - all futures contracts listed on the Derivatives Exchange.
31 19 14 16 16 13 15 15 20 21 19 16
45
48 45 43 40
40 41 46 52 44 42 25
3
6 5
3 3 2 2
2
3 2 2
2
14
23
31 37 40
45 42 37
26 33
37
57
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
(%) FKLI
40 38 35 33 35 31 25 27 36 34 34 38
15 21 26 24 23 27
34 38
27 26 24 20
4 6 4
3 2 1 1 1
1 1
27 21 18
20 22 25 22 15 17
15 13 13
14 14 17 20 18 16 18 20 19 25 28 28
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
(%) FCPO
Local
Domestic Retail
Domestic Institutions
Foreign Institutions Local
Domestic Retail Domestic Institutions
Foreign Institutions
27
Foreign Retail
June - Sept 2012
June - Sept 2012
KOAY LEAN LEE [email protected]
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 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 2012
INVESTOR RELATIONS CONTACT INFORMATION
E-mail : [email protected] Fax : 603-2026 3684
MUHAMMAD ALI [email protected]
603-2034 7673
28
LIM SIEW CHING [email protected]
603-2034 7277
