I n ve s t Ma l ay s i a Ho n g Ko n g

17 Oc to ber 2013

D a t o ’ Ta j u d d i n A t a n

C E O

KEY HIGHLIGHTS

EXPANDING INFLUENCE

10 Derivatives Products:

Commodity options

Commodity futures

Equity futures

Equity options

Financial futures

Islamic Offerings :

Sukuk

Shari’ah-compliant

equities

i-REITS

i-ETFs

Bursa Suq Al-Sila’

ETBS

TRADING CLEARING SETTLEMENT DEPOSITORY

SECURITIES DERIVATIVES ISLAMIC OTHERS

Electronic trading

platform for bonds

Labuan International

Financial Exchange :

Non-ringgit securities

Bond /Sukuk Listing

LISTING

Diverse MarketplaceIntegrated Exchange With Diversed Asset Classes

2 Markets:

Main Market : 802 cos

ACE Market : 108 cos

Products :Shares, REITs,

Warrants, ETFs,

ETBS, CBBCs,

Loan stocks &

Bonds, Stapled

Securities

3

4

Strong Financial GovernanceResults in Positive Foreign Inflow and High Investment Confidence

Source: Bursa Malaysia, 2013 YTD as at 30 September 2013

of daily trading originates

from foreign institutional

14,990

2,029

13,637

18,578

-

5,000

10,000

15,000

20,000

2010 2011 2012 2013

Net Foreign Inflow (2010-2013)

O v e r 1 0 0 F o r e i g n F u n d M a n a g e r s

a t t e n d e d I n v e s t M a l a y s i a K L 2 0 1 3

4

(RM mil)

27%

5

Large Amount of Domestic WealthIn The Malaysian Market

* EPF is the world 6th Largest Pension Fund

35-50%of daily trading originates

from local institutional

Local institutional funds

support & back-up the

market during severe

selling down

5

Source: Bloomberg

ASEAN: Significant market corrections over last 5 years

Date Indonesia Malaysia Philippines SingaporeThailand

May - Aug 2013 -17% -1% -13% -9% -16%

May - Jun 2012 -15% -11% -14% -13%

Jul - Sep 2011 -27% -12% -22% -28% -29%

Nov 2010 – Feb 2011 -12% -22% -18% -11% -14%

May 2010 -19% -6% -12% -15% -12%

Jan - Feb 2010 -12% -12%

Oct - Nov 2009 -11%

Jun - Jul 2009 -13% -11%

Jan - Mar 2009 -22% -14% -15% -28% -17%

Total Count 7 6 7 6 8

Average -18% -11% -15% -18% -15%

Malaysia Performing WellWithin The ASEAN Region

FBMKLCIExhibits

Resilience

Relative to its

ASEAN

Counterparts

6

7

Home to Regional CompaniesR i g h t t i m e t o b u y

Malaysia

The ASEAN ReachOpportunities for ASEAN Exposure in One Marketplace

7

Investing In Malaysia

Our IndexOffers

Capital Gain of

-20%

-10%

0%

10%

20%

30%

40%

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13

Index r

etu

rn %

FBMKLCI Index FSSTI Index JCI Index

7.0%

PCOMP

+11%

FBMKLCI

+7%

JCI

+3%

SET

+2%

FSSTI

+1%

8

Delivers

Dividend

Yield of

3.3%Malaysia

(FBM KLCI)

Indonesia

(JCI)

Philippines

(PCOMP)

Singapore

(FSSTI)

Thailand

(SET)

3.37%

3.33%

3.24%

2.42%

2.25%

Our Market Is Doing Well YTD Total Return From Capital Gain + Dividend Yield = 10%

9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2008 2009 2010 2011 2012

Global Trade Value (USD Trillion)

22%

Sustainable MarketplaceTrade Value Held Steadily Amidst Global Uncertainties

Over last 5 years, the global trade value has gone down 46% while ours has grown by 42%.

During a year when exchanges are facing global financial turbulence, global trade value was down 22%;

ours was down by only 7%.

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2008 2009 2010 2011 2012

Bursa Trade Value (USD billion)

42%

46%7%

Source: World Federation of Exchanges

10

OUR FINANCIAL PERFORMANCE

BUILDING CAPITAL

We Remain FocusedRevenue Growing at Faster Rate than Expenses

Operating revenue has gone up by 28% over the last 5 years compared to increase in expenses of

only 13%. The jump in Operating Revenue was significant in the last 2 years.

Currently, we have achieved cost optimisation. However, we foresee an increase in operating cost

in the future due to our investment in human capital to build talents. This is to achieve our goal

as a high performance organisation.

Operating

Expenses

Operating

Revenue

186.0 183.2 197.3 214.0 211.1

302.5 297.8 331.3 381.5 388.5

2008 2009 2010 2011 2012

(RM million)

Operating Expenses 13% Operating Revenue 28%

1

2

1H13 vs. 1H12 Financial Highlights Excellent performance from both the securities and derivatives markets

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.

AnnualisedROE

EPSPATAMIOperating 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 %

13

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:

49

16

11

8

66 4

1H 2013

Operating Revenue Mix (%)

Securities Trading Revenue

Derivatives Trading Revenue

Listing & Issuer Services

Depository Services

Market Data

Other Operating Revenue

Membership Services & Connectivity

14

93.0109.0

29.6

35.926.4

25.017.3

18.511.3

12.912.6

14.37.0

8.3

1H 2012 1H 2013

Operating RevenueBoosted 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

(RM mil)

18%14%

13%

7%5%

Total

RM197.2 mil

17%

21%

(%)

51

16

5

8

7

13

1H 2013

Operating Expenses Mix

Staff costs

IT maintenance

Service fees

Other operating expenses

Depreciation & amortisation

Marketing and development

15

103.9 108.0

5.8 0.8 -0.4

0.6

1.4 - 4.1

1H 2012 1H 2013

Movement of expenses:

Operating ExpensesInvesting in sustainability

49.455.2

16.717.5

5.4

5.07.8

8.46.0

7.418.6

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%

12%

Growing DividendsWith special dividend of 20 sen, total shareholders’ return = 31%

16

12.2 9.513.0 13.5

16.0

5.910.5

13.0 13.5

20.0

2009 2010 2011 2012 1H 2013

Payout

95%

Payout

93%

Payout

94%

Final Dividend (sen)

Interim Dividend (sen)

Payout

92% *

Payout

91%

Special Dividend (sen)

* Excludes special dividends

6.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Mala

yan B

ankin

g B

hd

Axia

ta G

roup B

hd

Dig

i.Com

Bhd

Maxis

Bhd

Bri

tish

Am

eri

can T

obacco

UM

W H

old

ing B

hd

Tele

kom

Mala

ysi

a B

hd

CIM

BPetr

onas

Dagangan

Sim

e D

arb

y

Petr

onas

Chem

icals

Gro

up

Hong L

eong B

ank

AM

MB H

old

ing B

hd

Public B

ank

RH

B C

apit

al

IOI Corp

Bhd

Kuala

Lum

pur

Kepong

Tenaga N

asi

onal

Bhd

Hong L

eong F

inancia

l G

roups

Petr

onas

Gas

Bhd

Ast

ro

Genti

ng M

ala

ysi

a B

hd

Feld

a G

lobal Ventu

res

YTL C

orp

Bhd

PPB G

roup

YTL P

ow

er

Bum

i Arm

ada B

hd

Genti

ng B

erh

ad

BU

RSA M

ALAYSIA

Dividend Yield – Bursa vs. FBMKLCI Constituents

@ 30 September 2013

Source: Bloomberg

MARKET PERFORMANCE

FUELLING GROWTH

1,720

2,071

9M 2012 9M 2013

30

33

1,368

1,611

30 Sept 2012 30 Sept 2013

22.71

13.35

YTD Sept 2012

YTD Sept 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

Securities Market OverviewMarket capitalisation and FBMKLCI reached new heights

20%

18%

18

1,768.6214 11

-41%

9M 2012 9M 2013

Crude Palm Oil Futures FMBKLCI Futures

Derivatives Market OverviewForeign Participation increased to 42% from 34%

Average Daily Contracts (000’)

Others

37.97

16%

75%

24%

Open Interest since Migration to Globex®

1/9/10

96,678

28/2/12

199,215

31/12/12

214,065

30/9/13

204,266

19

74%

26%

44.16

9M 2012 9M 201330 Sept 201330 Sept 2012 30 Sept 2012 30 Sept 2013

65

75

-3%

18 19

Sukuk Listing (USD$ bil)

No. of Sukuk

Bursa Suq Al-Sila’ ADV

Commodity Traded

(RM bil)

2.06

No. of Trading Participants

75%

Islamic Market OverviewBSAS ADV trending up

20

3.61

No. of Shari’ah Compliant Stocks

820 798

Market Capitalisation of Shari’ah

Compliant Stocks (RM bil)

825

1,029

25%

32.533.6

SEEDING IDEAS

OUR STRATEGY & FOCUS AREAS

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

22

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

Gold Futures

New ETFs

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

23

Expanding Capital MarketGlobal Partnerships & Recognition

Migration of Malaysian derivatives products to CME Globex®

QDII – Malaysia Investment destination for China investors

FTSE

Upgrade

CFTC

Approval

U.S. SEC

Approval

“Designated Offshore Securities

Market” recognition to ease

trading in Malaysian listed

securities & shelf listed bonds by

U.S. investors

CME

Partnership

Malaysia promoted to Advanced

Emerging Market status in FTSE

Global Equity Index Series

We have built successful global partnerships and will continue our efforts for more

business collaborations.

Approval from US Commodity

Futures Trading Commission

(CFTC) to enable Malaysian

Futures brokers to deal with US

customers

ASEAN Trading Link

connecting Bursa

Malaysia, Singapore

Exchange and Thailand

CBRC

Recognition

ASEAN Link

24

Internationally BenchmarkedBuilding Market Quality and Ensure Sustainability

• 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”

• 4th among 142 countries for Strength of Investor

Protection and 9th for Efficacy of Corporate Boards

• 4th among 183 countries for Investor Protection

ASIA

CORPORATE

GOVERNANCE

ASSOCIATION

WORLD BANK

WORLD

ECONOMIC

FORUM

FUTURES &

OPTIONS

WORLD

AWARD

• Winner of Best Technology Innovation by an Asian

Exchange Award and Runner-up for the Asian

Derivatives Exchange of the Year Award

25

www.bursamalaysia.com

APPENDICES :

Our Strategic Intents

Bursa’s Potential To Grow Its Velocity

Transforming Malaysia

Securities Market

Derivatives Market

Sound Macro Environment

Investor Relations Contact Information

2028 33

44 45 47 48 5365

77

100

120

141

166

290

Bursa’s Potential To Grow Its VelocityYTD August 2013

Source: World Federation Exchanges (WFE)

(%)

27

28

Government

Transformation

Plan

Recognition

& Competitiveness

Free Capital Mobility

& Improved Access to

Capital Market

New Economic Model & ETP

- high value & high income

Increasing private sector role in driving business

Creating a conducive environment for entrepreneurship

Focus on developing Human Capital & Innovation

4th for Investor Protection

(World Bank)

10th for Resilience in crisis

(Sevcorp Int’l Business Confidence

Survey)

21st amongst 134 countries for

Corporate Governance Framework

(World Economic Forum)

Access for Foreign Participation No restrictions on international

investments in Malaysia

Free to repatriate capital, profits

and income

Liberalised entry and ownership for

foreign players in the capital market

Foreign Listings

Transforming MalaysiaConducive Investment Environment

28

57

31

40 39

2023

34 32

25

32

53

34 34 33 3328

32

1,924

497

805 911

350 472

748 874

718

1,019

2,179

1,181

1,129 1,454

1,699 1,573 1,994

-

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 9M 2013

RM mil

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

2,002

-

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 3Q 13

RM mil

68

54 5041

46

3125

3223

48

3628

3528 31

3742

3034

2734

27 28 25 2837

32

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

29

65 6358

73 73 74 74 72

35 37 42 27 27 26 26 28

2006 2007 2008 2009 2010 2011 2012 9M 2013

66 63

7667

73 74 77 79

34 37 24 33 27 26 23 21

2006 2007 2008 2009 2010 2011 2012 9M 2013

357

806

496

323392 437 404

558

346

806

283 369 392 442

354418

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

30

2377

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

24.6

24.2

Jan-…

Apr-

…

Jul-

…

Oct-

…

Dec…

Jan-…

Apr-

…

Jul-

…

Oct-

…

Dec…

Jan-…

Apr-

…

Jul-

…

Oct-

…

Dec…

Jan-…

Feb…

Mar-

…

Apr-

…

May…

Jun…

Jul-

…

Aug…

(%)

China

Taiwan

USA

Mid-East

5.7

1.7

2.2

0.4

0.8

0.1

0.1

31

Others 12.0

117

142

123

129

115114

132136

162

171

152

174

146

172

214

196

213204

66

85

159

125

156

123132

152

214204

2004

2005

2006

2007

2008

2009

2010

2011

2012

9M

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

32

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’)

26%

74%

2.62.5

4.2

6.2 6.1 6.1 6.2

8.4

25%

29

`

`

75%

2422

2423

2528

37

3234 35

31

4042 44

Derivatives Market Activity

9.6

45

32

8.1

42

46

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 18

45

4845 43 40

40 41 4652 44 42 25 25

3

6

53

32

22

3

22

2 1

1423

3137 40

45 4237

2633 37

56 56

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(%)FKLI

40 38 35 33 35 31 25 27 36 34 34 36 34

15 2126 24 23

27

34 38

27 26 24 19 17

4

6 43 2 1 1

11

11

27

21 1820 22 25 22

15 1715

13 1210

14 14 17 20 18 16 18 20 1925 28 32

38

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(%)FCPO

Local

Domestic Retail

Domestic Institutions

Foreign Institutions Local

Domestic RetailDomestic Institutions

Foreign Institutions Foreign Retail

June –

Dec

2012

June -

Dec

2012

33

July –

Sept

2013

July –

Sept

2013

Sound Macro EnvironmentWe are fundamentally strong

GDP Growth 5.6% for 2012 & Projected 4.5 – 5% for 2013

Healthy International Reserves

Strong Banking Sector &

Ample Liquidity

> 90% of assets are RM denominated

Net Impaired Loans ratio : 1.4% @ Nov 2012

Conducive Domestic Interest

RatesOvernight policy rate: 3.0%

Manageable Inflation Modest 2.50 – 3.00 for 2013

(Source: BNM)

USD135 billion @ 13th September 2013

34

www.bursamalaysia.com

KOAY LEAN LEE

koayll@bursamalaysia.com

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

E-mail : ir@bursamalaysia.com

Fax : 603-2732 6160

MUHAMMAD ALI

muhammad@bursamalaysia.com

603-2034 7673

LIM SIEW CHING

limsiewching@bursamalaysia.com

603-2034 7277

NURHAFIZAWATI HANAFFI

nurhafizawati@bursamalaysia.com

603-2034 7484

INVESTOR RELATIONS CONTACT INFORMATION