fy 2013 performance - bursa malaysiabursa.listedcompany.com/misc/presentation_slide_4q_2013.pdf ·...
TRANSCRIPT
29 January 2014
FY 2013 Performance
Analyst & Media Briefing
Dato’ Tajuddin Atan, CEO
Nadzirah Abdul Rashid, Director Corporate Services
2
AGENDA
KEY HIGHLIGHTS AND MARKET PERFORMANCE
FOCUS AREA AND STRATEGY
FINANCIAL REVIEW
CONCLUSION AND APPENDICES
3
KEY HIGHLIGHTS AND MARKET PERFORMANCE
Key Highlights
Financial Trends
Key Drivers
Securities Market Overview
Derivatives Market Overview
Islamic Market Overview
4
Key HighlightsSolid Performance; PATAMI up 15%
2013 Achievements
Growing financial strength
• PATAMI of RM173 Mil, up 15% from 2012.
• Cost to Income ratio improved from 49% in 2012 to 48% in 2013.
• ROE recorded a significant increase from 18% in 2012 to 21% in 2013.
• A final dividend of 16 sen per share proposed.
Improved infrastructure with BTS2, significantly completed the refresh of our key
systems.
Enhanced market micro structure with RSS/SBL enhancement, green lane policy for
POs, strengthen PO framework, eRights, eStatement.
Expanded product range with business trusts framework stapled securities, FGLD, ETBS.
Outreach programs on all 3 markets.
297.8
331.3
381.5
388.5
439.8
181.9
196.6
212.0
209.2
229.4
2009 2010 2011 2012 2013
98.6
111.9
143.1150.6
173.1
Operating
revenue
(RM’m)
Operating
expenses (RM’m)
PATAMI
(RM’m)
17.8 20.0 26.0 27.0 52.0
2009 2010 2011 2012 2013
2.4% 2.6%3.9% 4.3%
6.3%
Financial TrendsBest financial performance in 5 years
5
56% 55% 51% 49% 48%
2009 2010 2011 2012 2013
Improving cost to income ratio
Growing revenue and profits; managed expenses
13% 13% 17% 18% 21%
2009 2010 2011 2012 2013
ROE breaks 20%
Returning value to shareholders
Dividend per share
(sen)Dividend yield
6
Key Drivers Strong performance across all markets
Key Financials FY 2013
FY 2013
vs.
FY 2012
Operating Revenue (RM million) 439.8 13%
PATAMI (RM million) 173.1 15%
EPS (sen) 32.5 15%
Key Drivers
Securities Market ADV OMT (RM million) 1,915 22%
Derivatives Market ADC (’000) 43 10%
BSAS ADV (RM million) 3,882 69%
2013
31.73
22.55
2012 2013
1,466
1,702
31 Dec 2012 31 Dec 20132012
7
Securities Market OverviewTrading activity up; market cap and FBMKLCI at new heights
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)
1,688.95
16%
29%
1,866.96
2830
17 18
28%
1,666
2,137
2012 2013
8
Derivatives Market OverviewGold futures launched; market continue to grow
Average Daily Contracts (’000)
Crude Palm
Oil Futures
FBMKLCI
FuturesOthers
39.39
10%
77%
22%
75%
25%
43.49
1%
Open Interest since Migration to Globex®
1/9/10
111,548
26/7/13
258,001
31/12/12
214,065
31/12/13
196,493
8871
31 Dec 2012
9
Islamic Market OverviewContinue to gain recognition as a market leader
% of Shari’ah Compliant Stocks
2012 2013
No. of Trading Participants
Bursa Suq Al-Sila’ ADV
(RM bil)
2.30
69%
3.88
69
78
9%
Market Capitalisation of Shari’ah
Compliant Stocks (RM bil)
31 Dec 2013
1,029942
31 Dec 201331 Dec 2012
20
No. of Sukuk
32.933.7
2%
20
Sukuk Listing (USD$ bil)
10
FOCUS AREA AND STRATEGY
Focus Area in 2013 and Beyond
Our Delivery in 2013
11
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
Focus Area in 2013 and BeyondTo establish strong regional presence
12
Create a More
Facilitative TRADING
ENVIRONMENT
Facilitate More
TRADABLE
ALTERNATIVES
Reshape
MARKET STRUCTURE
& FRAMEWORK
REGIONAL
MARKETPLACE
with Global Access
(Centre of ASEAN)
E-Rights
E-Statement
Establishment of
futures-only branch
offices
Widening coverage of
RSS & SBL
Retail Engagement
BTS Replacement
ETBS
Stapled Securities
framework
Business Trusts
framework
Gold Futures Contract
Revamped of Business
Rules for Securities
Brokers
NLT for derivatives
options
Establishment of CMTF
PLCs profiling
ASEAN Exchanges
Investors Outreach
Programme
1 2 3 4
Our Delivery in 2013Initiatives completed to build a competitive marketplace
4 Strategic Intents
13
FINANCIAL REVIEW
Financial Snapshots
Operating Revenue
Operating Expenses
Growing Dividends
52.0
57.6
49.3 48.3
4Q 2012 4Q 2013 FY2012 FY2013
14
35.8 33.8
150.6
173.1
4Q 2012 4Q 2013 FY2012 FY2013
94.5 103.9
388.5
439.8
4Q 2012 4Q 2013 FY2012 FY2013
5%
15%
2%
13%
10%
54.265.6
209.2229.4
4Q 2012 4Q 2013 FY2012 FY2013
21%
10%
Financial SnapshotGrowing from strength to strength
Operating revenue (RM mil) Operating expenses (RM mil)
PATAMI (RM mil) Cost-to-income (%)
11%
(RM mil)
178.5217.3
63.3
70.351.4
51.336.5
37.124.1
26.025.7
26.4
3.4
5.85.6
5.6
2012 2013
15
Total
RM439.8 mil
Securities Trading Revenue
Derivatives Trading Revenue
Listing & Issuer Services
Depository Services
13%
Market Data
Membership Services & Connectivity
BSAS Trading Revenue
Total
RM388.5 mil
Operating RevenueRevenue boosted by trades on securities and derivatives markets
• Increased securities market revenue contributed by higher domestic
and foreign trading participation.
22% growth in domestic institution participation
26% growth in foreign participation
21% growth in retail participation
• Higher derivatives market revenue due 32% increase in foreign
participation for FCPO and higher volatility in the FBM KLCI.
388.5
388.5
427.3 434.2 434.2
434.8 436.7 437.4
439.8
38.8
7.0 - 0.1 0.6 1.9 0.7 2.4
2012 2013
22%
11%
2% 8%70%
3%
Growth contribution by revenue streams :
0.2%
Other Operating Revenue
16
101.8120.0
33.7
35.08.9
8.316.2
17.813.6
15.835.0
32.5
2012 2013
Total
RM209.2 mil
Total
RM229.4 mil
10%
Staff costs
Depreciation & amortisation
Marketing & development
IT maintenance
Service fees
Other operating expenses
18.2 1.3 - 0.61.6
2.2 - 2.5
2012 2013
6%
(RM mil)
16%10%4%
7%
18%
• 10% growth in operating expenses largely due to adjustments to
talent pool remuneration package to benchmark against industry
rates.
• Technology related expenses have increased slightly due to
enhancement of certain systems.
• All other expenses continue to be managed.
Operating ExpensesCompetitive remuneration for talent pool
Movement of expenses :
209.2 229.4
8.8 9.513.0 13.5
16.0
16.0
9.010.5
13.0 13.5
20.0
2009 2010 2011 2012 2013
Payout
95%
17
Payout
94%
Payout
95%
Final Dividend (sen)
Interim Dividend (sen)
Payout
98% *
Payout
93%
Special Dividend (sen)
* Excludes special dividend
Growing DividendsHighest yield of 6.3%; total shareholders’ return 41%
18
CONCLUSION AND APPENDICES
Internationally Benchmarked
Conclusion
Appendices
19
Internationally BenchmarkedBuilding market quality and ensure sustainability
• 4th among 148 countries for Strength of Investor Protection
and 13th for Efficacy of Corporate Boards
• 4th among 189 countries for Investor ProtectionWORLD BANK
WORLD ECONOMIC
FORUM
• 4th among 11 countries in Asia (6th in 2010)
• Bursa Malaysia as a listed company is included in the “Top 50
Corporate Governance ranking of mid/small caps in Asia
Pacific”
ASIA CORPORATE
GOVERNANCE
ASSOCIATION
MINORITY
SHAREHOLDER
WATCHDOG GROUP(MSWG)
• Best Conduct of AGM
• Top 3 CG Transparency Award
• Top 5 Overall CG Award
More Facilitative Trading Environment
Going e (e-services and e-community)
Secured infrastructure
Orderly and efficient clearing, settlement and depository arrangement
More Tradable Alternatives
ESG Index
More products i.e. ETFs, Reits, ETBS
New derivatives products
Improve Market Structure & Framework
Liberalisation of derivatives membership
Continue enhancement of CG of PLCs
Fair and transparent market place
Regional Marketplace
20
Conclusion & Going Forward
2014
A good year for shareholders with 41% TSR
Key revenue drivers continue to grow.
Committed to improve ROE, continue to review cash position & capital requirements
Technology refresh completed, capex expected to be lower in FY14 compared to RM33 million in FY13
1
2
3
4
4 S
trate
gic
Inte
nts
350 472 748 874
718 1,019
2,179
1,181 1,129 1,454
1,699 1,573 1,915
-
400
800
1,200
1,600
2,000
2,400
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
RM mil
23
48
36
28
35
2831
3742
3034
27
34
27 2825
28
3732
25
2023
34 3225
32
53
34 34 33 3328 30
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 1,793
1,643
2,308
2,002
1,686
-
400
800
1,200
1,600
2,000
2,400
2,800
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 3Q 13 4Q 13
RM mil
Turnover Velocity (%)
21
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
66 63
7667
73 74 77 78
34 37 24 33 27 26 23 22
2006 2007 2008 2009 2010 2011 2012 2013
346
806
283 369 392 442
354424
22
65 6358
73 73 74 74 74
35 37 42 27 27 26 26 26
2006 2007 2008 2009 2010 2011 2012 2013
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
357
806
496
323392 437 404
507
2377
23
Foreign Ownership by Nationality (%)Based on Market Capitalisation
(as at month end)
24.0
24.1
24.3
24.8
25.2
24.7
24.6
24.2
24.1
23.9
23.6
23.5
Jan-1
3
Feb-1
3
Mar-
13
Apr-
13
May-1
3
Jun-1
3
Jul-
13
Aug-1
3
Sep-1
3
Oct-
13
Nov-1
3
Dec-1
3
(%)
Singapore
Hong Kong
UK
Foreign Nominees
China
Taiwan
USA
Mid-East
5.7
1.6
2.1
0.5
0.8
0.1
0.1
Others 12.5
Securities Market Foreign Ownership
24
117
142
123
129
115114
132136
162
171
152
174
146
172
214
196
213204
196
66
85
159
125
156
123132
152
214
196
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
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
3Q
13
4Q
13
Total Annual Contract (Mil)Quarterly (Average Daily Contracts ’000)
Crude Palm Oil FuturesOthersOpen Interest (’000)
25%
75%
2.62.5
4.2
6.2 6.1 6.1 6.2
8.4
FMBKLCI Futures
21%
29
`
`
78%24
2224
23
2528
37
3234 35
31
4042 44
9.6
45
10.7
42
46
Derivatives Market Activity
42
25
31 19 14 16 16 13 15 15 20 21 19 17 18
45
48
45 43 4040 41 46
52 44 42 25 28
3
6
53
32
22
3
22
21
1423
3137 40
45 4237
2633 37
56 53
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013
(%)FKLI
40 38 35 33 35 31 25 27 36 34 34 36 33
15 2126 24 23
27
34 38
27 26 24 1917
4
64
3 2 1 11
11
1
27
21 1820 22 25 22
15 1715
13 1210
14 14 17 20 18 16 18 20 1925 28 32
39
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013
(%)FCPO
Local
Domestic Retail
Domestic Institutions
Foreign Institutions Local
Domestic RetailDomestic Institutions
Foreign Institutions Foreign Retail
June –
Dec
2012
June -
Dec
2012
Derivatives Market Demography
26
Islamic Market Trading Activity
RM bil
0.01 0.10 0.180.27 0.35
0.64
1.05 1.111.29
1.411.55
2.17
2.46
2.99
3.65
3.40
3.79
4.67
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
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 3Q 13 4Q 13
BSAS Average Daily Value
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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 this presentation 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."
© Bursa Malaysia 2013
Thank You
KOAY LEAN LEE
603-2034 7306
MUHAMMAD ALI
603-2034 7673
LIM SIEW CHING
603-2034 7277
NURHAFIZAWATI HANAFFI
603-2034 7484
INVESTOR RELATIONS CONTACT INFORMATION
E-mail : [email protected]
Fax : 603-2732 6160