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Visit us at http://www.bursamalaysia.com BURSA MALAYSIA BERHAD 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 2010 Dato’ Yusli Mohamed Yusoff, CEO Nadzirah Abd Rashid, CFO 1H 2010 Financial Results 16 July 2010

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  • Visit us at http://www.bursamalaysia.com

    BURSA MALAYSIA BERHAD

    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 2010

    Dato’ Yusli Mohamed Yusoff, CEONadzirah Abd Rashid, CFO

    1H 2010 Financial Results

    16 July 2010

  • Highlights

    Sustainable Financial Performance 3

    Sustained Interest in Securities Market 4

    Derivatives Market Impacted by Lower Volatility 5

  • 144.4

    157.6

    1H09 1H10

    8.89.5

    1H09 1H10

    50.5 55.5

    1H09 1H10

    Net Profit (RM mil)

    3

    Sustainable Financial Performance

    9%

    6.9

    Net Profit Margin & Annualised ROE (%)

    Net Profit Margin Annualised ROE

    31.832.2

    13.6 13.20

    10

    20

    30

    401%

    1%

    10%

    8%

    1H09 1H10

    Operating Revenue (RM mil) Net Interim Dividend per Share (sen)

  • 1,1451,405

    1H09 1H10

    8181,044

    37% 31%

    1

    12

    1H09 1H104

    Turnover Velocity

    Daily Average Trading Value -OMT + DBT (RM mil)

    1,100%

    30

    86

    1H09 1H10

    187%

    Number of Structured Warrants

    Number of IPOs

    1113

    1H09 1H10

    14%

    From IPO & secondary offeringsTotal Funds Raised (RM bil)

    Sustained Interest in Securities Market

    Market Capitalisation (RM bil)

    FBM KLCI Index

    1,272.78(31 Dec 09)

    Highest1,345.09

    (7 Apr 2010)

    894.36(1 Jan 09)

    1,314.02 (30 June 2010)

    23%

    16%

    28%

    3.2% YTD

  • 26,77923,176

    1H09 1H10

    16,350

    14,510

    1H09 1H10

    5

    Daily Average Contracts (Units)

    Open Positions

    Derivatives Market Impacted by Lower Volatility117,030

    114,820

    9,767

    8,081

    1H09 1H10

    FCPO FKLI

    17%11%

    13%

    2%

  • Financial Review & Performance

    Financial Results Snapshots 7

    Higher Revenue Driven by Securities Trading 8

    Managing Costs 9

    Sustained Performance Ratios 10Strong Cash Reserves 11Consistent Dividend Payout 12

  • 144.4

    14.3

    88.3

    50.59.6

    157.6

    14.8

    93.9

    55.510.5

    1 2 3 4 5

    Financial Results Snapshots

    7

    9%

    3%

    6%

    10%

    9%

    1H09 1H09 1H09 1H09 1H091H10 1H10 1H10 1H10 1H10

    Operating Expenses (RM mil)

    Other Income(RM mil)

    Operating Revenue(RM mil)

    Net Profit(RM mil)

    EPS(sen)

  • 14.9

    12.0

    8.9

    5.43.7 1.4

    17.915.9

    8.2

    5.53.7 1.3

    Listing Fees Depository Services

    Information Services

    Broker Services

    Access Fees Participants' Fees

    Operating Revenue

    67.4

    21.1

    46.2

    9.7

    76.4

    17.5

    52.5

    11.2

    Equities Trading Revenue

    Derivatives Trading Revenue

    Stable Revenue Other Operating Revenue

    49%

    33%

    11%7%

    8

    Higher Revenue Driven by Securities Trading

    8* Other operating revenue mainly comprise conference fees , interest earned from participants’ contributions and perusal & processing fees.

    1H10

    Equities Trading Revenue

    Stable Revenue

    13%

    14%

    15%17%

    Operating Revenue up by 9% to

    RM157.6 mil in 1H10(1H09: RM144.4 mil)

    • Higher equities trading revenue driven by improved sentiment.

    • Derivatives trading revenue declined due to lower volatility in CPO prices and equities market.

    • Stable revenue increased due to higher listing and issue fees from the higher no. of IPO’s, structured warrants and secondary issues.

    RM mil 1H09 1H10

    Stable Revenue

    RM mil 1H09 1H10

    20%33%

    8%

    2%1%

    Derivatives Trading Revenue

    Other Operating Revenue*

  • 47%

    23%

    7%

    7%

    16%

    15.2

    6.3

    6.7

    22

    43.7

    13

    10

    7.5

    18.3

    39.5

    Other OPEX

    Market Development

    IT Maintenance

    Depreciation & Amortisation (D&A)

    Staff Cost

    9• Other OPEX comprises building management costs, professional fees, administrative expenses, CDS consumables & etc.

    1H10

    Staff Cost

    D & A

    IT Maintenance

    Market Development

    Other OPEX

    • Staff cost up due to talent development initiatives.• Accelerated D & A for Bursa Trade Derivatives.

    Managing Costs

    Operating Expenses Increased 6% to

    RM93.9 mil in 1H10 (1H09: RM88.3 mil)

    11%

    20%

    18%

    11%

    37%

    1H09 1H10RM mil

  • 10

    Sustained Performance Ratios

    Stable Revenue + Derivatives Trading Revenue :

    Operating Expenses

    31.8

    51.6

    76.2

    13.6

    32.2

    54.4

    74.6

    13.2

    Net Profit Margin Operating EBITDA Margin Return on Equity

    3%

    1%

    5%

    2%(%) 1H09 1H10

  • 849852

    31/12/2009 30/06/2010

    31/12/2009 30/06/2010

    11

    Strong Cash Reserves

    Shareholders’ Fund

    Financial Resources Available for Use

    RM mil

    453496

    RM mil

    0.4%

    9%

    The Company has sufficient financial resources to cover its Clearing Guarantee Fund Commitment, CAPEX and working capital requirements.

  • 93%

    Consistent Dividend Payout Maximising Value to Shareholders, Surpassed 75% Payout Policy

    12

    FINANCIAL YEAR

    2009Interim dividend

    - Franked dividend 5.1- Single tier 5.0

    Final Dividend (single tier) 9.0

    Historical Dividend Payout (sen/gross)

    FINANCIAL YEAR

    2008Interim Dividend 16.5Final Dividend 7.8 91%

    % of Dividend Payout(exclude special dividend)

    FINANCIAL YEAR

    2010 Interim Dividend (single tier) 9.5 91%

  • Business Review & Strategy

    Key Developments in 2010 14

    Continued Focus in 2010 15

    Global Recognition 16

    Bursa Malaysia - A Market of Quality 17

  • 14

    InternationalisingOur MarketBuilding Quality

    IncreasingLiquidity

    Enhancing Efficiency

    Relaxing admission

    requirements for Dual Licensing

    E-dividend

    Retail rejuvenation

    DMA marketing

    Listing of Malaysian derivatives

    products on CME’s Globex

    Enhancing standard of CG

    Maintain market integrity

    Market education & engagement

    CME’s KL Hub as a gateway for

    trading derivatives products

    CFTC approval to deal with US

    customers

    Expanding reach & profile of Islamic

    capital market

    ASEAN Link

    QDII – Malaysia investment

    destination for china investors

    Key Developments in 2010

    CBBCsNew ETFsNew Reits

  • 15

    SecuritiesMarket

    Drive Liquidity & Vibrancy

    Enhance Pre and

    Post Trade Equities

    Infrastructure

    Lower Friction

    and Widen Access

    DerivativesMarket

    Restructure Infrastructure

    Develop Existing Business

    Leverage On Existing

    Strategic Partnership

    Islamic Market

    Internationalize Islamic Markets

    Products & Capabilities

    Increase Visibility

    In Line With MIFC’s

    Objectives

    Attract International

    Investors & Issuers

    Continued Focus in 2010

  • 16

    Approval from US Commodity Futures Trading Commission (CFTC) to enable Malaysian Futures brokers to deal with US customers.

    On Watch List for FTSE Global Equity Index

    Series: Advanced Emerging

    Partnering with the world’s premier derivatives player to develop our derivatives market

    QDII – Malaysia Investment

    destination for china investors

    Global Recognition

    The Asset Triple A Awards- "Market Innovation" award for Bursa Suq Al-Sila‘

    Investor Relations Global Rankings (IRGR)

    - "Best Corporate Governance Practices" and "Best Online Annual

    Report"

    CBRCRecognition

    CFTC Approval

    FTSEWatch List

    CME Partnership

    AWARDS2010

  • 17

    Safe Regulatory Environment

    Compelling Products

    Secure Infrastructure

    Bursa Malaysia - A Market of Quality

  • Q & AVisit us at http://www.bursamalaysia.com

    BURSA MALAYSIA BERHAD1H 2010 Financial Results

    16 July 2010

  • Additional Information

    2009 Initiatives 20

    Islamic Market Highlights 21

    Trading Participation 22

    Market Foreign Ownership 23

    Derivatives Market Demography 24

    Derivatives Market Activity 25

  • 20

    2009 Initiatives –Building Blocks For An Attractive Market

    Multicurrency Securities Framework

    KLCI Conversionto FTSE

    Foreign IPOs

    INTERNATIONALISINGMARKETS

    Strategic partnership with CME on derivatives market

    Restructuring of minimum bids/spread size

    Introduction of SBL-Negotiated Trade

    Market Making-Structured Warrants & ETFs

    More Proprietary Day Traders

    STRENGTHENING LIQUIDITY

    Direct Market Access - Equity

    Market Education & Awareness

    NEW PRODUCTS & SERVICES

    FTSE BM Palm Oil Plantation Index Series

    Sukuk Listing

    Bonds Listing(exempt regime)

  • 21

    Islamic Market Highlights

    Foreign Membership Admission

    1. Saudi Hollandi Bank

    Foreign Membership Shari’ah Approvals

    1. Al Rajhi Bank

    2. Alinma Bank

    3. Bank AlBilad

    No. of Listings 14

    % of Total Listings 72%

    Programme value listed USD 20,937,989,256

    Exchange Global Ranking 1

    Sukuk Exempt Regime listings @ 30 June 2010

    Non-Shariah Compliant

    Shariah Compliant

    88% or 846

    Shari’ahCompliant Companies

    64% or RM 666.34 bn in terms of market cap

    Shari’ah Compliant Companies

    Total Value Traded and ADV for BSAScontinues to rise month on month saveand except May 2010 which saw a dropdue to the BNM’s OPR hike.

  • 43 40 50 43 29 34 37 24 33 27

    51 5445

    53

    7166 63

    7667

    73

    6 6 5 4

    2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 30 June

    2010

    %Retail Trading Participation

    22

    Trading Participation

    “Others”- refer to trades conducted for accounts notbelonging to individuals/ institutions. Definitions ofinvestors’ type clarified in 2004, hence reducing thetype of investor falling under “others” category.

    2010 statistics were based on Bursa’s internal system.From 2001 to 2009, the statistics were based onBrokers’ submission.

    71 68 76 69 63 65 63 58 73 75

    29 3224

    3137 35 37

    42

    27 25

    2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 30 June

    2010

    %Foreign Trading Participation

    Retail Institutions Others Local Foreign

  • 23

    Market Foreign Ownership

    8.7%

    1.2%

    1.9%

    0.4%

    0.2%

    13.1%

    Singapore

    UK

    Hong Kong

    USA

    Mid-East

    Others

    25.40%

    74.60%

    Foreign Ownership by Nationality

    Foreign Nominees

    Foreign Ownership

    25.0 27

    .5

    27.0

    26.6

    26.5

    25.7

    24.1

    21.7

    20.9

    20.7

    20.7

    20.9

    20.4

    20.4

    20.6

    20.6

    June2010

    %

  • 24

    Derivatives Market Demography

    31 19 14 16 16 13 15 15 15 23

    45

    4845 43 40 40 41 46 45

    47

    3

    65

    3 32 2

    2 2

    2

    14

    23

    3137 40

    45 4237 38

    28

    2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 30 June

    2010

    %FKLI

    * 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 futurescontracts listed on the Derivatives Exchange.

    LocalDomestic Retail

    Domestic InstitutionsForeign Institutions

    40 38 35 33 35 31 25 27 33 35

    15 2126 24 23 27

    34 3824 28

    2721 18

    20 22 25 2214

    2715

    14 14 17 20 1816 18 20

    1622

    2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 30 June

    2010

    %

    FCPO

    LocalDomestic Retail

    Domestic InstitutionsForeign Institutions

  • 2003 2004 2005 2006 2007 2008 2009 1H10

    49K

    66K

    85K

    159K

    125K

    156K

    123K

    1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10

    139K

    122K

    136K

    156K148K

    117K

    142K

    123K129K

    115

    25

    Derivatives Market Activity

    2.0

    2.6

    2.5 4

    .2

    6.2

    6.1

    6.1

    Annually (Total, million units)

    KLCI Futures

    Crude Palm Oil Futures Open Position

    Others

    39%

    30,2

    83

    20,9

    45

    24,5

    22

    24,1

    69

    23,8

    62

    29,4

    23

    24,0

    18

    59%

    Quarterly (Daily Average Contracts)

    KLCI Futures

    Crude Palm Oil Futures Open Position

    Others

    21,5

    49

    115K

    2.923

    ,889

    35%

    63%

    22,5

    17

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