q3 2007 financial results · 2007-10-15 · q3 2007 financial results 11 october 2007 disclaimer...

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Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The 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.

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Page 1: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

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.

Page 2: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

2

Strong PAT for 9M07

Special gross dividend declared

RM191.1m

FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS

28 sen

Page 3: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

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%

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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%

Page 5: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

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%

Page 6: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

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%

Page 7: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

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

Page 8: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

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

Page 9: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

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

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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

Page 11: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

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

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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

Page 13: Q3 2007 FINANCIAL RESULTS · 2007-10-15 · Q3 2007 FINANCIAL RESULTS 11 OCTOBER 2007 Disclaimer The contents of this presentation include materials which may be capable of being

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APPENDIXAPPENDIXAPPENDIX

THANK YOU

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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%

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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

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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

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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

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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