1Q2020 Financial Results

30 April 2020

Agenda Key Financial Highlights

Market Performance

Conclusion

Appendices

2

Key Financial Highlights Financial Highlights for 1Q2020

Operating Revenue

Operating Expenses

3

44

Financial HighlightsHigher 1Q2020 PAT resulting from higher trades in the Securities & Derivatives Markets

Operating revenue increased mainly due to higher Securities and Derivatives trading revenue.

ROE increased by 12 percentage points to 35% while Cost to Income Ratio decreased by 7 percentage

points to 42%.

1Q2020 vs. 1Q2019:

Financial Items 1Q2020

1Q2020

vs.

1Q2019

1Q2020

vs.

4Q2019

Operating Revenue (RM million) 145.5 19.8% 18.6%

Operating Expenses (RM million) 63.5 2.4% 3.6%

PATAMI (RM million) 64.7 38.2% 42.1%

EPS (sen) 8.0 37.9% 42.9%

Annualised ROE 35% 12 percentage points 11 percentage points

Cost to Income Ratio 42% 7 percentage points 9 percentage points

5

121.4

- - - - - - - -

145.5

1Q2019 1Q2020

Operating Revenue20% increase in 1Q2020 from higher trading revenue

(RM mil)

Total

RM145.5 mil

Total

RM121.4 milGrowth contribution by revenue streams:

59.0

78.1

16.4

26.7

3.9

2.9

11.9

12.3

10.2

10.5

9.6

9.7

5.4

5.3

5.0

1Q2019 1Q2020

19.8%

32.2%

+19.1

+10.3 -1.0+0.4

+0.3 +0.1 -0.1 -5.0

63.5%

25.2% 3.8% 2.6%1.8% 3.6%

100.0%

Increased in the Securities Trading Revenue from higher ADV-OMT.

Increased in the Derivatives Trading Revenue due to higher ADC.

Lower BSAS Trading Revenue due to lower BSAS ADV.

Higher Listing & Issuer Services fees due to increased number of IPOs.

No conference income recorded as the POC event has been deferred due to the

COVID-19/MCO imposed by the Government.

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

Market Data

Member Services & Connectivity

BSAS Trading Revenue

Conference Fee & Exhibition Related Income

6

Total

RM62.0 milTotal

RM63.5 mil

Operating ExpensesIncreased by 2% due to higher technology costs

Note^ - Other operating expenses include building maintenance, administrative expenses and CDS expenses.

33.5 34.2

5.1 5.6

6.4 2.1

5.2

5.0

4.16.9

7.7 9.7

1Q2019 1Q2020

2.4%

(RM mil)

Movement of expenses:

62.0

63.5

1Q2019 1Q2020

+0.7+0.5 -4.3

-0.2

+2.8

+2.0

1.9%

9.5%

66.9%2.3% 66.6%

25.9%

Higher manpower costs due to higher provision of variable costs.

Decrease in marketing & development costs due to the deferment of POC event.

Increase in service fees due to higher Globex fees resulting from higher number of

ADC.

Increase in other operating expenses due to higher professional fees incurred.

Staff Costs

Depreciation & Amortisation

Marketing & Development

IT Maintenance

Service Fees

Other Operating Expenses^

Market Performance Securities Market Overview

Derivatives Market Overview

Islamic Capital Market Overview

7

8

Securities Market OverviewHigh trades registered due to higher volatility recorded in the Securities Market

29 2639

1,729 1,712

1,379

31 MAR 2019 31 DEC 2019 31 MAR 2020

20.3%

19.4%

Average Daily Value (“ADV”)

(OMT)(RM mil)

Market Capitalisation (RM bil) Fund Raised from IPOs &

Secondary Market (RM bil)

941 840

1,216

515465

686

611

485

627

1Q2019 4Q2019 1Q2020

2,067

1,790

2,529

Velocity (%) FBMKLCI

0.10.3 0.2

0.3

2.0

0.6

1Q2019 4Q2019 1Q2020

No. of IPOs

Fund Raised from IPOs

Fund Raised from Secondary Market

ADV of Domestic Institutions

ADV of Retail

ADV of Foreign Institutions Market Capitalisation

5

7 7

86.0%

22.4%

0.8

0.4

41.3%

1,644 1,589 1,351

2.3

64.8%

9

20 Feb

2020

346,403

1 Sept 2010

111,548

31 Mar

2020

259,15419 Aug

2019

200,757

ADC - Crude Palm Oil Futures

Volatility of Crude Palm Oil

Prices

Derivatives Market OverviewUpward trend in FCPO and FKLI trades resulting from higher volatility

in the underlying CPO prices and FBMKLCI

ADC - OthersADC – FBMKLCI Futures

Volatility of FBMKLCI

Average Daily Contracts (“ADC”)

& VolatilityOpen Interest (No. of Contract)

8,518 10,125 15,072

37,235

50,535

69,194 1,606

2,384

1,312

1Q2019 4Q2019 1Q2020

16% 19%39%

7% 7%

18%

79%

18%

81%

18%

80.7% 85,578

47,359

1%

3%

63,044

16%

80%

4%

35.7%

10

Islamic Capital Market OverviewBSAS ADV declined by 4% mainly due to lower trades from foreign participants

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)

Market Capitalisation of Shariah

Compliant StocksDomestic Foreign

26.3 23.2

26.2

5.3

4.6

4.2

1Q2019 4Q2019 1Q2020

31.630.4

3.8%

27.8

9.0%

187222 231

1,0801,116

923

31 MAR 2019 31 DEC 2019 31 MAR 2020

14.5%

17.3%

62% 77% 77%

Conclusion Moving Forward

COVID-19 Relief Measures

11

12

Moving Forward

SECURITIES MARKET

• The Securities Market performance in 1Q2020 was mainly driven by the volatility in the market, influenced by local

and global developments, such as Malaysia’s political landscape, the declining oil prices and particularly, fuelled

by the measures undertaken by most countries around the world in response to the COVID-19 outbreak.

• The central banks around the world have sought to mitigate the economic impact of COVID-19 via the easing of

monetary policies as well as providing financial relief measures. Given the uncertainties on the impact of COVID-19

to the overall economy and corporate earnings, the equity market is expected to continue to be volatile.

DERIVATIVES MARKET

• The average daily contracts recorded in this quarter is almost double that of the corresponding quarter last year.

External factors such as India’s restriction of palm oil imports from Malaysia and the ongoing impact of COVID-19

will continue to influence the volatility in both the underlying crude palm oil prices and the equities market.

• Nonetheless, the Exchange will continue to expand and strengthen its product offerings, and attract new

participants to the Derivatives Market.

ISLAMIC CAPITAL MARKET

• Trading activities through Bursa Malaysia-i platform saw an increase in 1Q2020 compared to 1Q2019. This is in line

with the higher trading activities in the overall market and the trend is expected to continue in the medium term

with the onboarding and activation of new trading participants of retail and institutional investors on Bursa

Malaysia-i.

• Bursa Suq Al-Sila' (“BSAS”), on the other hand, is expected to sustain its level of activities by continuous

engagement with its foreign participants to increase their trading activities. In 1Q2020, the Exchange saw the

onboarding of nine new participants for BSAS, of which two are foreign.

In consideration of the impact of COVID-19 both financially and operationally, the Exchange had announced several

relief measures to ease the financial burden of the capital market participants and to provide greater flexibility to

aid them through this challenging period. In line with the economic projections made by BNM, IMF and the World

Bank, the performance of the listed companies is also expected to be impacted. Nevertheless, the uncertainties in

both the global and local markets are anticipated to continue to contribute to the volatility and trading activity in

both the Securities and Derivatives Markets in the short and medium term.

Fee Waiver

• Waiver of processing fee of IPO

applications for ACE & LEAP Markets

• Waiver of initial fee and annual listing fee

for companies seeking listing in ACE &

LEAP Markets, and on the Main Market for

companies with less than RM500m market

cap

Annual Listing Fee Rebate

Rebate of 50% for the year 2020 for Listed

Issuers with market cap below RM500m as at

31 Dec 19 and report financial losses as

measured by Group loss after tax in their

quarterly report (for quarter ended between

1 Apr to 30 June 2020)

Margin Accounts Flexibility

• Expansion of list of collaterals

• Removal of requirement to automatically

liquidate client’s margin account

• Removal of requirement to make

additional margin calls or impose haircuts

on any collateral and securities purchased

and carried in margin accounts

Community Support

Financial assistance to support communities,

namely the lower-income B40 and hospitals

handling COVID-19 cases

Relief Measures for COVID-19 – Financial Assistance

Extension for the issuance of periodic reports and flexibility on the timings of AGMs

Shortened counter service hours by market participants

Increase in the general mandate threshold for new issue of securities

Extension of time to submit regularisation plan for PN17/GN3 and 8.03A Listed Issuers and relief to Listed Issuers with unsatisfactory financial condition

Extension for submission of CDS transaction forms to Bursa Malaysia

Relief Measures for COVID-19 – Non-Financial Assistance

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 Activity15

16

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

2,716 2,730

2,226

1,912 2,069 2,022

1,855 1,790

2,529

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

2837

3125

30 29 30 28 30 28 29 30 29 27 26 25

34 35

2631

35 3730

2730 29 27 26

39

33 3328 30 29 30 27

32 32 28

39

1,454 1,699 1,573

1,915 2,053 1,991

1,812

2,314 2,392

1,930

2,529

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20

Turnover Velocity (%)

Quarterly ADV Traded & Velocity

Average Daily Value Traded (RM mil)

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

Annual ADV Traded & Velocity

Securities Market Trading Activity

17

392 442

354

424

530 464

372

525 538

473

686

73 74 77 78 74 77 79 77 78 75 73

27 26 23 22 26 23 21 23 22 25 27

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

1Q

20

73 74 74 74 76 73 73 78 73 70 75

27 26 26 26 24 27 27 22 27 30 25

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

1Q

20

For 2009, the statistics were based on Brokers’ submission. From 2010 onwards statistics were based

on Bursa’s internal system.

Retail

(%)

Institution

(%)Local(%)

Foreign(%)

Retail ADVTraded (RM mil)

Foreign ADV

Traded (RM mil)

Retail vs. Institution Foreign vs. Local

Securities Market Trading Participation

392 437 404 507 492

544 491 506

647 571

635

18

Securities Market Foreign Ownership

22.3

23.1

24.4

24.0

24.3

22.8

22.3

22.9

23.4 2

3.6

24.2

24.1

24.1

23.9

23.5

23.6

23.6

23.4

23.7

23.4

23.5

23.5 2

3.7

23.4

23.2

23.1

23.2

23.0

22.9

22.7

22.6

22.3

22.4

22.3

22.3

2010

2011

2012

2013

2014

2015

2016

2017

Jan-1

8

Feb-1

8

Mar-

18

Apr-

18

May-1

8

Jun-1

8

Jul-

18

Aug-1

8

Sep-1

8

Oct-

18

Nov-1

8

Dec-1

8

Jan-1

9

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Jun-1

9

Jul-

19

Aug-1

9

Sep-1

9

Oct-

19

Nov-1

9

Dec-1

9

Jan-2

0

Feb-2

0

Mar-

20

Based on Market Capitalisation (%)

19

-10,000

-5,000

0

5,000

10,000

2017

TNFI: RM10.8 bil

2015

TNFO: RM19.7 bil

2016

TNFO: RM3.2 bil

TNFI: Total Net Foreign Inflow

(RM mil)

TNFO: Total Net Foreign Outflow

Foreign Inflow/Outflow

Monthly foreign inflow/outflow from 2015 to 2020

-1,557 -1,411

-2,041

135

-79

-2,599

-559 -485

-1,542-1,216

-138

-1,969

-5,522-6,000

-5,000

-4,000

-3,000

-2,000

-1,000

0

1,000Monthly foreign inflow/outflow from Mar 2019 to Mar 2020(RM mil)

2018

TNFO: RM11.7 bil

1Q2020

TNFO: RM7.6 bil

2019

TNFO: RM11.1 bil

196

213

204196

218

239

288

196

207

229 235

230

283

293

226237

262263

261

295

283

290

306

245

274

247

234

283

259

132

152

214

196196

230

237

295

245283 259

20

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

1Q

20

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

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

18%

Quarterly Average Daily Contracts (’000)

60

Total Annual Contract (mil)

Crude Palm Oil FuturesOthersOpen Interest (’000)

18%

81%

6.2

8.4

9.6

FBMKLCI Futures

`

`

81

%4542

4642

10.7

50

12.5

44

54

Derivatives Market Activity

55

14.2

62

51

62

56

14.0

5856

62

55

14.1

575754 53

13.7

56 56

`

`

1%

1%

58

47

5.4

51

5963

86

13.5

Foreign Institutions

21

21 1915 18 20 18

14 11 14 13 13

4442

2828 24

23

1918

2519

24

22

21 2

5

33

3

2

3

3337

55 53 54 55

6468

5866

60

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20

(%)FKLI

34 34 36 33 34 31 2823

18 16 15

26 24 1917 15

1516

2024 25 30

11

1 11

1 1 1 11

1513

12

10 15 2121 23

2016 11

25 2832

3935 32 34 33

3742 43

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20

(%)FCPO

Local

Domestic Retail

Domestic

Institutions

Foreign Institutions Local

Domestic RetailDomestic

Institutions

Foreign Retail

Derivatives Market Demography

3.9 6.9

15.2 16.319.6

24.3

30.6 30.4(RM bil)

22

2.75.5

13.5 13.4 15.118.1

25.1 26.2

1.21.4

1.72.9

4.5

6.2

5.5 4.2

2013 2014 2015 2016 2017 2018 2019 1Q2020

BSAS Annual Average Daily Value

Local ADV Foreign ADV BSAS ADV (RM bil)

13.5

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 16.2 14.3 15.9

25.7 26.3 27.2

23.9 23.2 26.2

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 6.4 5.9

5.7

6.8 5.3 5.5

6.5 4.6

4.2

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

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

BSAS Quarterly Average Daily Value(RM bil)

Islamic Capital Market Activity

DISCLAIMER:

These presentation slides are owned by Bursa Malaysia Berhad and/or the Bursa Malaysia group of companies (“Bursa Malaysia”). Whilst Bursa Malaysia endeavors to

ensure that the contents in this presentation are accurate, complete, current and have been obtained from sources believed by Bursa Malaysia to be accurate and

reliable, neither Bursa Malaysia or the presenter of this presentation 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 Bursa Malaysia be liable for any claim, however arising, out of or in relation

to this presentation.

This document shall be used solely for the purpose it was circulated to you. This document is owned by Bursa Malaysia Berhad and/or the Bursa Malaysia group of

companies (“Bursa Malaysia”). No part of the document is to be produced or transmitted in any form or by any means, electronic or mechanical, including

photocopying, recording or any information storage and retrieval system, without permission in writing from Bursa Malaysia.

Copyright Bursa Malaysia Berhad 2019 (30632-P)

23

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