1H 2013 Financial Results
18 July 2013
Welcome to Our
Analyst & Media Briefing
Dato’ Tajuddin Atan Chief Executive Officer
Nadzirah Abdul Rashid Director, Corporate Services
AGENDA:
KEY HIGHLIGHTS
MARKET PERFORMANCE
STRATEGY
FINANCIAL REVIEW
CONCLUSION
APPENDICES
EXPANDING INFLUENCE
KEY HIGHLIGHTS :
1H13 vs. 1H12 Financial Highlights 4
Profit & ROE Trend 5
1H13 vs. 1H12 Financial Highlights Excellent performance from both the securities and derivatives markets
4
Higher Operating Revenue and PATAMI due to:
Jump in securities market post GE13.
Greater foreign participation in derivatives market led to higher ADC.
Interim dividend of 16 sen and special dividend of 20 sen.
Annualised ROE
EPS PATAMI Operating Revenue
Cost to Income Ratio
Dividend per Share
RM223.9m RM93.0m 17.5 sen 45% 21%
19% 19% 14%
36 sen
7% 167% 13 %
54.8 54.7 50.1 52.1 48.3 44.8
157.7
173.6
200.4
181.1
197.2 191.2
223.9
55.0 56.9
76.5 66.6
78.3 72.2
93.0
1H2010 2H2010 1H2011 2H2011 1H2012 2H2012 1H2013
13.2 13.6 18.0 15.7 18.4 21.0
Operating Revenue
(RM mil)
ROE (%) PATAMI
(RM mil)
Cost to Income
Ratio (%)
Profit & ROE Trend Positive trending on all key indicators
5
50.3
16.8
MARKET PERFORMANCE :
FUELLING GROWTH
Securities Market Overview 7
Derivatives Market Overview 8
Islamic Market Overview 9
1,738 1,596
2,064
1H 2012 2H 2012 1H 2013
1,368
1,466 1,599
30 June 2012
31 Dec 2012
30 June 2013
30 26
33
13.87
17.86
10.43
1H 2012 2H 2012 1H 2013
Average Daily Value (OMT+DBT)
(RM mil)
Velocity (%) FBMKLCI No. of New Listing
Market Capitalisation (RM bil) Fund Raised from New Listings &
Secondary Market (RM bil)
1,599.15
1,688.95
Securities Market Overview Market capitalisation and FBMKLCI reached new heights
8 9
7
19% 17%
7
-25%
1,773.54
1H 2012 2H 2012 1H 2013
Crude Palm Oil Futures FMBKLCI Futures
Derivatives Market Overview Foreign Participation increased to 42% from 34%
Average Daily Contracts (000’)
Others
35.85
21%
73%
26%
Open Interest since Migration to Globex®
1/9/10
96,678
28/2/12
199,215
31/12/12
214,065 30/6/13
212,879
8
81%
19%
73%
27%
42.90 43.36
1H 2012 2H 2012 1H 2013
818 813 800
864
1H 2012 2H 2012 1H 2013
61 69 72
1H 2012 2H 2012 1H 2013
13%
18 20 19
Sukuk Listing (USD$ bil)
No. of Sukuk
Bursa Suq Al-Sila’ ADV
Commodity Traded
(RM bil)
1.87
No. of Trading Participants
88%
29.3
Total Market Capitalisation of
Shari’ah Compliant Stocks (RM bil)
Islamic Market Overview BSAS ADV trending up
9
33.7 33.0 2.73
3.52
942
1,008
17%
No. of Shari’ah Compliant Stocks
SEEDING IDEAS
STRATEGY :
Focus Area in 2013 and Beyond 11
2013 Business Plans 12 -13
Focus Area in 2013 and Beyond To establish strong regional presence
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
11
Create a More
Facilitative TRADING
ENVIRONMENT
Facilitate More
TRADABLE
ALTERNATIVES
Reshape
MARKET STRUCTURE
& FRAMEWORK
REGIONAL
MARKETPLACE
with Global Access
(Centre of ASEAN)
2013 Business Plans Major initiatives to build a competitive marketplace
E-Rights
Establishment of
futures-only branch
offices
Widening coverage of
RSS & SBL
Retail Strategy
BTS Replacement
ETBS
Stapled Securities
framework
Business Trusts
framework
New ETFs
New Derivatives
Products
Revamped of Business
Rules for Securities
Brokers
NLT for derivatives
options
Establishment of CMTF
Liberalisation of
Derivatives market
membership structure
PLCs profiling
ASEAN Exchanges
SI 1 SI 2 SI 3 SI 4
Note : SI-Strategic Intent
12
2013 Business Plans Major initiatives to build a competitive marketplace
13
1Q 13
E-Rights
ETBS
Revamped of Business Rules for Securities Brokers
NLT for derivatives options
PLCs profiling
2Q 13
Stapled Securities framework
Business Trust Framework
Establishment of futures-only branch offices
2H 13
Widening coverage of RSS & SBL
Retail Strategy
BTS Replacement
New ETFs
New Derivatives Products
Liberalisation of Derivatives market membership structure
FINANCIAL REVIEW :
Financial Snapshot 15
Operating Revenue 16
Operating Expenses 17
Growing Dividends 18
BUILDING CAPITAL
Financial Snapshot Strong financial performance
15
49.1 48.3
2Q 2012 2Q 2013 1H 2012 1H 2013
Cost to income ratio (%)
37.7
78.3
2Q 2012 2Q 2013 1H 2012 1H 2013
PATAMI (RM mil)
96.7
197.2
2Q 2012 2Q 2013 1H 2012 1H 2013
Operating revenue (RM mil)
45%
19%
17% 7%
122.2
223.9
13%
26%
93.0
54.8
2Q 2012 2Q 2013 1H 2012 1H 2013
Operating expenses (RM mil)
2% 108.0
51.8 53.1
103.9
4%
44.8 40.7
93.0 109.0
29.6
35.9 26.4
25.0 17.3
18.5 11.3
12.9 12.6
14.3 7.0
8.3
1H 2012 1H 2013
Operating Revenue Boosted by post GE rally
Total
RM223.9 mil
Securities Trading Revenue
Derivatives Trading Revenue
Listing & Issuer Services
Depository Services
13%
Market Data
Membership Services & Connectivity
Other Operating Revenue
197.2
197.2
213.2 218.1 218.1
219.3 220.9 222.5
223.9
16.0
6.3 -1.4 1.2 1.6
1.7 1.3
1H 2012 1H 2013
Growth contribution by revenue streams:
(RM mil)
18% 14%
13%
7% 5%
16
Commentaries
Total
RM197.2 mil
17%
21%
• Jump in securities trading revenue due to investor relief following
GE13.
i. 54% jump in overall ADV
ii. 116% jump in retail ADV
iii. 42% jump in foreign ADV
• Higher derivatives trading revenue due to improved foreign
participation and higher FKLI trades led by pre and post GE
sentiment.
103.9 108.0
5.8 0.8 -0.4
0.6
1.4 - 4.1
1H 2012 1H 2013
Movement of expenses:
Commentaries
Operating Expenses Investing in sustainability
49.4 55.2
16.7 17.5
5.4 5.0 7.8 8.4 6.0
7.4 18.6
14.5
1H 2012 1H 2013
Total
RM103.9 mil
Total
RM108.0 mil
4%
Staff costs
Depreciation & amortisation
Marketing & development
IT maintenance
Service fees
Other operating expenses
(RM mil)
23% 8% 7%
5%
22%
17
12%
• Higher staff cost as efforts to build capabilities and capacity
continue.
• Higher volume based service fee in line with increase in derivatives
contracts.
12.2 9.5 13.0 13.5
16.0
5.9 10.5
13.0 13.5
20.0
2009 2010 2011 2012 1H 2013
Payout
95%
Growing Dividends With special dividend of 20 sen, total shareholders’ return = 31%
Payout
93%
Payout
94%
Final Dividend (sen)
Interim Dividend (sen)
Payout
92% *
Payout
91%
18
Special Dividend (sen)
* Excludes special dividends
EXPANDING INFLUENCE
CONCLUSION :
Conclusion 20
20
This is Bursa Malaysia’s best quarter in terms of our financial results since the
2007 rally, benefited from GE13 and recorded growth in all markets.
Malaysia’s market fundamentals are strong and our performance post-GE13
bears testament to the strength of our market.
Bursa Malaysia will continue to:
Extract values from Bursa Malaysia’s own initiatives and government’s ETP
and GTP.
Improve business efficiency and effectiveness.
provide a more facilitative trading environment through the upgrading
systems and infrastructure as well as stakeholder engagement.
Conclusion
1H 2013 Financial
Results Briefing 18 July 2013
Thank you
Q & A
www.bursamalaysia.com
APPENDICES : Positive Foreign Inflows 23
Increasing Weight in MSCI 24
High Yielding Stock 25
Securities Market Trading Activity 26
Securities Market Trading Participation 27
Securities Market Foreign Ownership 28
Derivatives Market Activity 29
Derivatives Market Demography 30
(RM bil)
(4)
(3)
(2)
(1)
-
1
2
3
4
5
6
Jan-1
2
Feb-1
2
Mar-
12
Apr-
12
May-1
2
Jun-1
2
Jul-
12
Aug-1
2
Sep-1
2
Oct-
12
Nov-1
2
Dec-1
2
Jan-1
3
Feb-1
3
Mar-
13
Apr-
13
May-1
3
Jun-1
3
Foreign Net Purchases/Sales
Positive Foreign Inflows Foreign investors were net buyers for most months
Net Purchases Net Sales
23
Increasing Weight in MSCI Malaysia’s weight in the MSCI Asia Pacific Ex Japan Index is on the rise
24
April 2011
2.9%
April 2012
3.4%
July 2013
3.9%
High Yielding Stock One of the highest dividend yield PLCs among FBM KLCI constituents
3.6
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Tele
kom
Mala
ysi
a B
hd
Mala
yan B
ankin
g B
hd
Petr
onas
Dagangan
Axia
ta G
roup B
hd
Dig
i.Com
Bhd
Maxis
Bhd
Bri
tish
Am
eri
can T
obacco
Sim
e D
arb
y
Petr
onas
Chem
icals
Gro
up
Feld
a G
lobal Ventu
res
Hong L
eong B
ank
Tenaga N
asi
onal Bhd
Kuala
Lum
pur
Kepong
Public B
ank
IOI Corp
Bhd
CIM
B
AM
MB H
old
ing B
hd
RH
B C
apit
al
Hong L
eong F
inancia
l G
roups
Petr
onas
Gas
Bhd
Genti
ng M
ala
ysi
a B
hd
UM
W H
old
ing B
hd
YTL P
ow
er
Ast
ro
YTL C
orp
Bhd
PPB G
roup
Bum
i Arm
ada B
hd
Genti
ng B
erh
ad
BU
RSA M
ALAYSIA
Source: Bloomberg 25
1.23%
2.04%
2.17%
2.96%
3.09%
3.16%
3.30%
3.38%
3.61%
4.60%
Selected Regional Markets – Dividend Yield
@ 30 June 2013
Australia
(AS30)
Bursa (FBM
KLCI)
China
(SHASHR)
Hong Kong
(HSI)
Indonesia
(JCI)
Philippines
(PCOMP)
Singapore
(FSSTI)
South Korea
(KOSPI)
Taiwan
(TWSE)
Thailand
(SET)
Dividend Yield – Bursa vs. FBMKLCI Constituents
@ 30 June 2013
1,924
497
805 911
350 472
748 874
718
1,019
2,179
1,181
1,129 1,454
1,699 1,573 1,989
-
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 2012 1H 2013
RM mil
57
31
40 39
20 23
34 32
25
32
53
34 34 33 33 28
33
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
1,430 1,643
2,308
-
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 4Q 12 1Q 13 2Q 13
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 25 28 37
Securities Market Trading Activity
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
26
65 63 58
73 73 74 74 71
35 37 42 27 27 26 26 29
2006 2007 2008 2009 2010 2011 2012 1H 2013
66 63
76 67
73 74 77 80
34 37 24 33 27 26 23 20
2006 2007 2008 2009 2010 2011 2012 1H 2013
357
806
496
323 392 437 404
570
346
806
283 369 392 442
354 390
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
27
22.9 77.1
Securities Market Foreign Ownership
Singapore
Hong Kong
UK
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
23.7
23.9
24.0
24.1
24.3
24.8
25.2
24.7
(%)
China/Taiwan
USA
Mid-East
Others
5.7
1.6
2.2
1.2
0.2
0.1
11.9
28
2004
2005
2006
2007
2008
2009
2010
2011
2012
1H
2013
117
142
123 129
115 114
132 136
162
171
152
174
146
172
214
196
213
66
85
159
125
156
123 132
152
214 213
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
29
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’)
27%
73%
2.6 2.5
4.2
6.2 6.1 6.1 6.2
8.4
30%
29
`
`
69%
24 22
24 23
25 28
37
32 34
35
31
40
42 44
Derivatives Market Activity
9.6
45
29
5.2
42
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 17 20
45
48 45 43 40
40 41 46 52 44 42 25
32
3
6
5 3
3 2
2 2
3
2 2
2
1
14 23
31 37 40
45 42 37
26 33 37
56 47
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2013
(%) FKLI
40 38 35 33 35 31 25 27 36 34 34 36 33
15 21 26 24 23
27
34 38
27 26 24 19 17
4
6 4 3 2 1 1
1 1
1 1
27
21 18 20 22 25 22
15 17 15
13 12 10
14 14 17 20 18 16 18 20 19 25 28 32
39
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2013
(%) FCPO
Local
Domestic Retail
Domestic Institutions
Foreign Institutions Local
Domestic Retail Domestic Institutions
Foreign Institutions Foreign Retail
June –
Dec
2012
June -
Dec
2012
30
www.bursamalaysia.com
KOAY LEAN LEE
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 2013
INVESTOR RELATIONS CONTACT INFORMATION
E-mail : [email protected]
Fax : 603-2732 6160
MUHAMMAD ALI
603-2034 7673
LIM SIEW CHING
603-2034 7277
NURHAFIZAWATI HANAFFI
603-2034 7484