q3 2007 financial results · 2007-10-15 · q3 2007 financial results 11 october 2007 disclaimer...
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1
Q3 2007 FINANCIAL RESULTS11 OCTOBER 2007
DisclaimerThe contents of this presentation include materials which may be capable of being interpreted as forward-looking statements. Such statements are merely predictions and targets, based on circumstances and reasonable assumptions which apply only at the date of such statements. Accordingly, no reliance should be placed on any forward-looking statements, express or implied, contained in this presentation.
2
Strong PAT for 9M07
Special gross dividend declared
RM191.1m
FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS
28 sen
3
STRONG EARNINGSSTRONG EARNINGS
59.1
111.3
56.0
25.1
Q306 Q307
Operating Revenue Profit After Tax
9M06 9M07 RM’mil
186.9
91.8
79.5
12.0
15.4
31.0
350.5
234.3
191.1
36.7
RM’mil
Op. Revenue
Op. EBITDA
PAT
Annualised ROE %
EPS (sen)
%
88%
158%
138%
155%
140%
4
PERFORMANCE DRIVERSPERFORMANCE DRIVERS
EQUITY
DERIVATIVES
Velocity
Market Capitalisation
Daily Average Trading Volume
Daily Average Trading Value
Daily Average Contracts
%
78%
150%
55%
34%
93%
9M06 9M07
32% 57%
RM746b RM1.0t
1.6b829m
RM2.5bRM1.0b
15,201 25,964
YTD10 OCT 07
25,628
RM1.0t
1.6b
RM2.5
57%
5
RATIOS MOVING UPRATIOS MOVING UPK
EY
RA
TIO
S Annualised ROE
Operating EBITDA Margin
Net Profit Margin
Stable Revenue:Total Operating Expenses
Q306 Q307 9M06 9M07
11.3 25.9
61.5
45.8
51.2
12.0 31.0
66.8
49.2
55.8
47.0
36.9
53.7
49.1
36.6
52.9
158%
36%
34%
5%
129%
31%
24%
5%
6
ON TRACK TO ACHIEVE ON TRACK TO ACHIEVE KPIsKPIs
9M072007
Target
Velocity
Annualised ROE
Derivatives: Daily Average Contracts
40% 57%
16.8% 31.0%
40% growth
55%growth
43%
85%
38%
7
22.912%
4.12%
103.556%
56.430%
OPERATING REVENUE REVIEWOPERATING REVENUE REVIEW
%
131
52
25
51
88
Trading Revenue (Derivatives)
Trading Revenue (Equities)*
Stable Revenue
Other Operating Revenue
TOTAL*Excludes SC levy (Clearing fee is 0.04% advalorem, subject to a cap of RM500 per trade, of which 18.75% is SC levy)
9M06
RM186.9m RM350.5m
70.620%
238.968%
34.810%
6.22%
9M07
RM’mil
8
GROWING STABLE REVENUEGROWING STABLE REVENUE
TOTAL
Information Services
Listing Fees
Participants’Fees
Depository Services
Broker Services
%
10
148
3
-3
7
25RM56.5m RM70.6m
8.114% 11.6
21%
14.325%
19.835%
2.75%
14.721%
11.216%
21.731%
20.128%
2.94%
9M06 9M07
RM’mil
9
11.59%
10.58%
64.551%
21.317%
7.06%
11.99%
OPERATING EXPENSESOPERATING EXPENSES
TOTAL
IT Maintenance
Depreciation Amortisation
Market Development
Staff Costs
Building Maintenance
%
16
-9
-11
17
18RM106.7m RM126.7m
12.912%
11.611%
18.017%
55.852%
6.06%
9M06 9M07
RM’mil
2.4 2.4 2%2%
19
Other OPEX
396
10
57.2 56.6 70.6
15.3 22.834.8
72.1103.5
238.9
6.2
4.0
3.7
OPERATING LEVERAGEOPERATING LEVERAGE
RM’mil
9M05 9M06 9M07
Stable Revenue Trading Revenue (Derivatives)Trading Revenue (Equities) Other Operating Revenue
PAT RM62.5m RM79.5m RM191.1m
Operating Expenses
107.9 106.7 126.7
148.3148.3
186.9186.9
350.5350.5
11
AS AT 30 SEPT 2007AS AT 30 SEPT 2007ADDITIONAL INFORMATIONADDITIONAL INFORMATION
*Inclusive of RM85m set aside for Clearing Guarantee Fund
Financial Resources Available for Use
Shareholders’ Funds
Capital Expenditure allocatedfor FY07
567*
834
90
12
DIVIDEND POLICY 75%DIVIDEND POLICY 75%TO ENSURE WE GENERATE VALUE FOR SHAREHOLDERSTO ENSURE WE GENERATE VALUE FOR SHAREHOLDERS
10 sen10 sen
12.5 sen14 sen
0
5
10
15
20
25
30
FY 2005 = 91%
% of dividend payment
FY 2006 = 92%
Gross Dividend/ShareAssumption: Based on IPO price of RM3.00 and last done price on 9th October 2007 of RM12.90
Total Shareholders’ Return since IPO = 390%(Capital Gain + Dividends + Special Dividend)
330% increase in share price since IPO
60% increase in share price YTD 2007
81 sencapital repayment
0
2
4
6
8
10
12
14
Mar
-05
May
-05
Jul-0
5
Sep-
05
Nov
-05
Jan-
06
Mar
-06
May
-06
Jul-0
6
Sep-
06
Nov
-06
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep-
07
Oct
-07
0
25
50
75
100
125
150
175
200
225
Mill
ion
BURSA Monthly Volume
BURSA Share Price
9
Gro
ss D
ivid
end
/ Sha
re (S
en)
12.5
sen
14 s
en
10 s
en
10 s
en
32 s
en
28 senspecial
dividend
Gross Dividend/Share % of dividend payout excluding special dividend& capital repayment
2005 :
2006 :
2007:28 senspecial
dividend
InterimFY2007
FinalFY2006
InterimFY2006
FinalFY2005
InterimFY2005
13
APPENDIXAPPENDIXAPPENDIX
THANK YOU
14
IMPROVING VELOCITYIMPROVING VELOCITY
797
394534
839983
876250151 293 332 247
309225 254
505 495 481
876
1,8061,642
2,495
1,924
497
1,1291,000
2,733
814
1,372
2,057
1,129
62%
31%
57%57%
25%
40%
19%
45%
33%
58%
25%
32%33% 32%
501001502002503003504004505005506006507007508008509009501000105011001150120012501300135014001450150015501600165017001750180018501900195020002050210021502200225023002350240024502500255026002650270027502800285029002950300030503100
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1H07 Q3070%
10%
20%
30%
40%
50%
60%
Daily Average Volume (million units) Daily Average Value (million RM) Turnover Velocity
57%
15
IMPROVED ACTIVITY IN DERIVATIVESIMPROVED ACTIVITY IN DERIVATIVES
24,7
97
26,5
77
26,0
37
21,7
57
19,1
04
14,5
00
11,7
03
9,57
8
9,82
3
9,54
2
10,9
39
145,107161,544158,737
162,628
128,000
105,500
84,00092,00081,800
93,600
159,019
0
5,000
10,000
15,000
20,000
25,000
30,000
Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307-30,000
20,000
70,000
120,000
170,000
220,000
Daily AverageVolume Open Position
Derivatives Hit New Daily Record!FKLI = 45,104 contracts 27 Jul 07
FCPO = 37,231 contracts on 13 June 07
FCPO Open Interest = 101,536 contracts on 8 June 07
Total Contracts = 53,865 on 27 Feb 07
16
FOREIGN TRADING PARTICIPATIONFOREIGN TRADING PARTICIPATION
31
35
44
32
343842
31
39
35 32
30
34
3231
3640
3733
41
-
10,000
20,000
30,000
40,000
50,000
60,000
Jan-06
Mar-06
May-06
Jul-0
6
Sep-06
Nov-06
Jan-07
Mar-07
May-07
Jul-0
7
-5.0010.0015.0020.0025.0030.0035.0040.0045.0050.00
Total Foreign Trading (RM billion) % of Foreign Trading
1215
1715
1915
13
23 22
1115 13
36
4235 36
49
4040
30
Aug-0
7
17
FOREIGN INVESTORS CONTINUEFOREIGN INVESTORS CONTINUETO PARTICIPATETO PARTICIPATE
85%
82%
69% 81
%
76%
73% 83
%
78%
71%
68% 76
%
69%
63%
65%
64%
15%
18%
31% 19
%
24%
27% 17
%
22%
32% 24
%
31%
37%
35%
36%29
%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 YTAug 07
Local Investors Foreign Investors
Breakdown of trading (by value) 1993 to August 2007
18
IMPROVED RETAIL PARTICIPATIONIMPROVED RETAIL PARTICIPATION42
%
45%
44% 54
%
44% 49% 59
%
54%
43%
40% 50
%
43%
29%
34%
38%
51%
48%
45% 36
%
42% 43
% 35%
40%
51%
54% 45
%
53%
71%
66%
62%
8%14%
10%
11%7%7% 6% 6%6% 6% 5% 3%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 YTAug 07
Retail Institutions Others
Breakdown of trading (by value) 1993 to August 2007