UNLOCKING THE POTENTIAL

OF OUR MARKETPLACE

DRIVING

SUSTAINABILITYAND INCLUSIVENESS

1H 2016 Financial Results

Analyst & Media Briefing

25 July 2016

Datuk Seri Tajuddin Atan

Chief Executive Officer

Rosidah Baharom

Chief Financial Officer

AGENDA

KEY FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE

FINANCIAL REVIEW

FOCUS AREA & CONCLUSION

APPENDICES

2

KEY FINANCIAL HIGHLIGHTS & MARKET PERFORMANCE

FINANCIAL HIGHLIGHTS FOR 1H2016

HALF YEARLY FINANCIAL TREND

SECURITIES MARKET OVERVIEW

DERIVATIVES MARKET OVERVIEW

ISLAMIC CAPITAL MARKET OVERVIEW

3

Financial Highlights For 1H2016Improved performance despite global & domestic market challenges

Financial Items 1H2016 1H2015

1H2016

vs.

1H2015

Operating Revenue (RM million) 248.4 240.4 3.3%

Operating Expenses (RM million) 123.6 117.8 5.0%

PATAMI (RM million) 99.4 96.5 3.0%

EPS 18.6 sen 18.1 sen 2.8%

Cost to Income Ratio 47% 46% 1 percentage point

Annualised ROE 25% 25%

Higher operating revenue contributed by all market segments.

The increase in operating expenses is mainly due to higher manpower and technology

costs.

Interim dividend of 17 sen, equivalent to 91.7% payout to be paid on 19 August 2016.

1H2016 vs. 1H2015:

4

13 14

18

16

18 17

21

19

23

27

25 26

25

55 55

50 52

48 50

45

52

48

44 46 46 47

158

174

200

181

197 191

224 216

231 241 240 247

248

55 57

77 67

78 72

93 80

92 106

97 102 99

1H2010 2H2010 1H2011 2H2011 1H2012 2H2012 1H2013 2H2013 1H2014 2H2014 1H2015 2H2015 1H2016

5

Half Yearly Financial TrendStrong Operating Revenue performance

Operating Revenue

(RM mil)

PATAMI

(RM mil)

Cost to Income

Ratio (%)

ROE (%)

2928

1,659 1,660

1H2015 1H2016

0.1%

Securities Market OverviewLower ADV influenced by market sentiments

Average Daily Value (“ADV”)

(OMT)(RM mil)

Market Capitalisation (RM bil) Fund Raised from New Listings &

Secondary Market (RM bil)

1,008 965

443413

543 532

1H2015 1H2016

1,994 1,910

Velocity (%)

1,706.64

1,654.08

FBMKLCI

2.9

0.4

8.1

7.1

1H2015 1H2016

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

5 5

31.9%

6

4.2%

10,425 12,057

44,648 47,475

241

257

1H2015 1H2016

Crude Palm Oil Futures

Volatility of Crude Palm Oil Prices

Derivatives Market OverviewContinuous growth in FCPO and FKLI contracts

OthersFBMKLCI Futures

Volatility of FBMKLCI

18%19%

14%11%

81%

19%

Average Daily Contracts (“ADC”)

& VolatilityOpen Interest (No. of contract)

79%

20%

8.1%

7

31 Dec 2015

230,376

31 Mar 2016

282,871

26 May 2016

337,267

01 Sept 2010

111,548

30 Jun 2015

228,787

1%

59,79055,314

Islamic Capital Market OverviewHigher BSAS trades following the adoption of Murabaha principle and

higher usage of Tenor Based Pricing

20.824.1

14.2

29.2

30 JUNE 2015 30 JUNE 2016

35.0

53.3

11.3

14.4

1.5

2.6

1H2015 1H2016

12.8

17.0

33.6%

106

116

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)

74% 74%21

23

52.3%

Domestic Foreign Market Capitalisation of Shariah

Compliant StocksDomestic Foreign

8

1,023 1,034

30 JUNE 2015 30 JUNE 2016

1.2%

FINANCIAL REVIEW

9

Financial Snapshot

Operating Revenue

Operating Expenses

Dividends

10

49.5 49.5

96.5 99.4

2Q2015 2Q2016 1H2015 1H2016

120.7 122.2

240.4 248.4

2Q2015 2Q2016 1H2015 1H2016

3.0%

3.3%

1.3%

57.5 60.3

117.8123.6

2Q2015 2Q2016 1H2015 1H2016

4.8%

Financial SnapshotMarginal growth in 1H16 Operating Revenue & PATAMI amidst challenging period

Operating revenue (RM mil) Operating expenses (RM mil)

PATAMI (RM mil)

4546

4647

2Q2015 2Q2016 1H2015 1H2016

Cost-to-income (%)

1 percentage point

5.0%

1 percentage point

Operating RevenueGrowth contributed mainly by Derivatives trading and Market Data

11

Lower Securities trading revenue was due to lower ADV seen YoY.

Growth in Derivatives trading revenue was attributed to higher number of contracts and

higher open interest position.

BSAS trading revenue increased due to higher conversion of deposits to Murabaha

principle and increasing usage of tenor based pricing.

Market data revenue increased due to higher number of subscribers.

240.4

248.4

-3.3

+6.1+ 1.3

+ 1.2+ 0.9

+ 1.7+ 0.2

- 0.1

1H2015 1H2016

4.7%

2.9%

(RM mil)

115.9 112.6

40.0 46.1

7.5 8.8

25.8 27.0

18.7 19.616.2

17.910.410.6

5.95.8

1H2015 1H2016

3.3%

Total

RM248.4mil

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

Market Data

Member Services & Connectivity

BSAS Trading Revenue

Total

RM240.4 mil

17.6%

Growth contribution by revenue streams:

4.8%

15.1%

Other Operating Revenue*

Note* - Other operating revenue mainly includes conference & exposition income

1.8%

10.7%

1.6%

63.9 66.6

11.712.1

7.1 6.58.8 8.4

10.8 11.8

15.518.2

1H2015 1H2016

Total

RM117.8 mil

Total

RM123.6 mil

5.0%

Staff costs

Depreciation & amortisation

Marketing & development

IT maintenance

Service fees

Other operating expenses^

+ 2.7 + 0.4 - 0.6-0.4

+ 1.0

+ 2.7

1H2015 1H2016

9.2%

(RM mil)

3.8%

17.0%

3.4%

4.2%

Operating Expenses1H2016 operating expenses increased 5.0% YoY

Movement of expenses:

117.8

123.6

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

expenses.

Staff cost increased due to annual increment.

Higher service fees due to higher YoY Derivatives ADC.

Higher other operating expenses mainly due to advisory fees.

7.6%

12

0.0000

2.0000

4.0000

6.0000

8.0000

10.0000

12.0000

JC

Y IN

TER

NA

TIO

NA

L

YT

L H

OSPIT

ALIT

Y

AM

AN

AH

RA

YA

REIT

ATLA

N H

LD

G B

HD

SA

PU

RA

RESO

UR

CES

ELSO

FT

RESEA

RC

H

BER

JA

YA

SPO

RTS

SC

H G

RO

UP B

HD

DIG

I.C

OM

BH

D

ZH

ULIA

N C

OR

P B

HD

DA

IBO

CH

I PLA

ST

IC

TO

MY

PA

K H

LD

G

EIT

A R

ESO

UR

CES

MA

XIS

BH

D

BIN

TU

LU

PO

RT

HLD

VS IN

DU

ST

RY

BH

D

SC

C

SU

NW

AY

CO

NSTR

UC

T

OR

IEN

TA

L F

OO

D IN

PR

EST

AR

IAN

G B

HD

KPJ H

EA

LT

HC

AR

E

XIN

HW

A H

OLD

ING

S

N2N

CO

NN

EC

T B

HD

SA

SBA

DI H

OLD

ING

S

BIO

ALPH

A H

OLD

ING

BU

RSA

MA

LA

YSIA

Dividend Yield – Bursa vs. other PLCs

@ 30 June 2016

3.9%

13

Source: Bloomberg and Bursa Malaysia

13.0 13.5 16.0 16.0 16.5 17.0

16.0 18.0 18.0

13.0 13.5

20.020.0

2011 2012 2013 2014 2015 2016

Payout

98% *

Payout

92%

Special Dividend (sen)

Interim Dividend (sen)

Final Dividend (sen)

Payout

95%

Payout

95%

Payout

92% *

Payout

93%

DividendsMaintained high dividend payout to shareholders

Proposed interim dividend of 17.0 sen. The entitlement and payment dates for the interim dividend are

9 August 2016 and 19 August 2016 respectively.

* Exclude special dividend

FOCUS AREAS & CONCLUSION

14

Highlights of 1H2016 Initiatives

Focus Areas

Moving Forward

15

Highlights of 1H2016 Initiatives

Create a More

Facilitative TRADING

ENVIRONMENT

SI 1

REGIONAL MARKETPLACE

with Global Access

(Centre of ASEAN)

Extended “Green Lane Policy” to eligible futures

brokers & eligible general clearing participants.

Facilitate More

TRADABLE ALTERNATIVES

Launched call and put warrants over the Standard

& Poor’s 500 Index.

Amended Listing Requirements to raise the

standards of disclosure of Corporate Governance

practices.

Launched the Equities Margining Framework.

Reshape

MARKET STRUCTURE &

FRAMEWORK

SI 2

SI 3

SI 4 Launched FTSE4GOOD ASEAN 5 Index.

Signed MoU with Taiwan Stock Exchange to

undertake joint study to explore capital market

opportunities.

Focus Areas

16

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

Create a More

Facilitative

TRADING

ENVIRONMENT

Reshape

MARKET

STRUCTURE &

FRAMEWORK

SI 1

Facilitate More

TRADABLE

ALTERNATIVES

SI 2 SI 3

REGIONAL

MARKETPLACE

with Global Access

(Centre of ASEAN)

SI 4

Moving Forward

SECURITIES MARKET• The second quarter saw reversals in foreign funds from the Malaysian equity market after a

strong inflow in the first quarter of the year.

• The Securities Market performance continues to be influenced by global and local economic and

market conditions.

• Domestic liquidity will continue to provide support to the equity market given the country’s

strong economic fundamentals and sound financial system.

DERIVATIVES MARKET• Derivatives Market activities will continue to be spurred by the volatility in commodity prices and

FBM KLCI.

ISLAMIC CAPITAL MARKET• Transactions on Bursa Suq Al-Sila’ are expected to be sustained with the demand for Murabaha

contracts to aid liquidity management.

Given the above factors, the Exchange remains cautiously optimistic on its performance for the

year, and is committed with its initiatives in making the Malaysian equity and derivatives markets

more attractive and vibrant.

17

UNLOCKING THE POTENTIAL

OF OUR MARKETPLACE

1H 2016 Financial Results

Analyst Media Briefing

25 July 2016

Q & A

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

APPENDICES

23

4836

2835

28 3137 42

30 3427

3427 28 25 28

3731

25 30 29 30 28 30 28 29 30 29 27

2023

34 3225

32

53

34 34 33 3328 30 29 30 28

350 472 748

874 718

1,019

2,179

1,181 1,129

1,454 1,699

1,573

1,915 2,053 1,991 1,910

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16

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

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 2,002

1,686 2,068 2,053

2,196 1,901

2,081 1,913 1,933 2,042 1,981 1,842

1Q09 2Q09 3Q09 4Q09 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

20

346

806

283 369 392

442354

424

530464

413

6663

76

6773 74

77 7874 77 78

34 37 24 33 27 26 23 22 26 23 22

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16

65 6358

73 73 74 74 74 7673 72

35 37 42 27 27 26 26 26 24 27 28

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16

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 Institution Foreign vs Local

Securities Market Trading Participation

357

806

496

323392

437 404507 492

544 538

21

Securities Market Foreign Ownership

22.3

23.1

24.4

24.0

24.3

24.124.0

24.1 24.1

23.7

23.423.3

23.1

22.8 22.8

22.5

22.3 22.322.5

23.023.0 23.0

22.8

Based on Market Capitalisation (%)

Note: Previously, foreign shareholdings are computed based on the investor’s country of incorporation. To be more reflective of the

actual foreign shareholdings in the equity market, from January 2016 onward, the foreign shareholdings are computed based on the

nationality of investors. On this basis, we have adjusted all the numbers above accordingly.

22

Foreign Inflow/Outflow

Monthly foreign inflow/outflow from 2011 to 2016

-10,000

-5,000

0

5,000

10,000

2015

TNFO: RM19.7 bil

2011

TNFI: RM2.0 bil

2012

TNFI: RM13.6 bil

2013

TNFI: RM2.6 bil

2014

TNFO: RM6.9 bil

TNFI: Total Net Foreign Inflow

(RM mil)

TNFO: Total Net Foreign Outflow

-3,175 -2,840 -4,068 -2,374

608

-844 -1,193 -1,001

432

6,065

428

-4,282 -1,760

-6000

-4000

-2000

0

2000

4000

6000

8000

Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16

Monthly foreign inflow/outflow from Jun 2015 to Jun 2016

1H2016

TNFO: RM0.1 bil

23

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

1H

16

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

66

85

159

125

156

123 132152

214

196 196

230

293

18%

129

115

114

132

136

162

171152

174

146

172

214

196

213204

196

218

239

288

196

207

229235

283293

230

32

Quarterly Average Daily Contracts (’000)

3734

28

54

Total Annual Contract (mil)

Crude Palm Oil FuturesOthersOpen Interest (’000)

20%

79%

2.6 2.5

4.2

6.2 6.1 6.1 6.2

8.4

FMBKLCI Futures

24

`

`

82%

2325

3531

4042 44 45

42

9.6

46

10.7

42

50

Derivatives Market Activity

44

12.5

5655

60

51

14.1

6258

7.4

24

62

1%

31 19 14 16 16 13 15 15 20 21 19 15 18 20 18 15

45

48

45 43 4040

41 46

52 4442

2828

2423

22

3

6

53

32

2

2

3

22

21 2

54

14

23

3137 40

45 4237

2633

37

55 53 54 5559

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16

(%)FKLI

40 38 35 33 3531

25 2736 34 34 36 33 34 31 28

1521

2624

2327

3438

2726 24

1917 15

1517

4

6 43 2 1 1

1

11

1 11 1

2721 18

20 22 25 22 15 17

1513

12

10 15 21 21

14 14 17 20 18 16 18 20 1925 28

3239

35 32 33

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1H16

(%)FCPO

Local

Domestic Retail

Domestic Institutions

Foreign Institutions Local

Domestic RetailDomestic Institutions

Foreign Institutions Foreign Retail

Derivatives Market Demography

25

Islamic Capital Market Activity

26

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

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

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

BSAS Average Daily Value

Local ADV Foreign ADV

(RM bil)

www.bursamalaysia.com

RASMONA ABDUL RAHMAN

rasmona@bursamalaysia.com

603-2034 7175

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 2016

E-mail : ir@bursamalaysia.com

ADRINA CHE AHMAD

adrina@bursamalaysia.com

603-2034 7488

RAFIDAH AZIZ

rafidahaziz@bursamalaysia.com

603-2034 7262

INVESTOR RELATIONS CONTACT INFORMATION