41 Annual General Meeting - listed companybursa-cn.listedcompany.com/misc/41st_AGM_Slides.pdfAverage Daily Contracts (’000) & Volatility Derivatives & Islamic Capital Markets Trend

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41st Annual General

Meeting

28 March 2018DRIVING SUSTAINABILITYAND INCLUSIVENESS

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www.bursamalaysia.com

Welcome Remarks

by the Chairman,

Tan Sri Amirsham A Aziz

41ST AGM OF BURSA MALAYSIA BERHAD

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Demand for Poll

• Pursuant to Paragraph 8.29A of the Main

Market Listing Requirements of Bursa Malaysia

Securities Berhad.

• Poll is demanded by the Chairman of the

meeting in accordance with Article 54(a) of the

Company’s Constitution.

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Poll Administrator and Scrutineers

Poll Administrator : Tricor Investor & Issuing House

Services Sdn Bhd

Scrutineers : Deloitte Enterprise Risk

Services Sdn Bhd

5


AGENDA 1

To receive the Audited Financial Statements

for the financial year ended 31 December

2017 and the Reports of the Directors and

Auditors thereon.

6

41st Annual General

Meeting

Presentation to Shareholders

28 March 2018

Datuk Seri Tajuddin Atan

Chief Executive Officer

DRIVING SUSTAINABILITYAND INCLUSIVENESS

7

2017 FINANCIAL PERFORMANCE

2017 MARKET PERFORMANCE

LOOKING AHEAD

Agenda

8

2017 FINANCIAL PERFORMANCE

Financial Trends

Growing Shareholders’ Value

9

55

51 49 48

46 46 47 45

331

382 389

440 471

488 473

522

112 143 151

173 198 199 194

223

2010 2011 2012 2013 2014 2015 2016 2017

13

17 18

21 25 26

23

26

Operating Revenue

(RM mil)

PATAMI

(RM mil)Cost to Income

Ratio (%)

PATAMI

RM223m

COST TO

INCOME

45%

RETURN ON

EQUITY

26%

FY2017 IN BRIEF

Financial TrendsRecorded highest operating revenue since listing

ROE (%)

10

9.513.0 13.5 16.0 16.0 16.5 17.0 20.0

10.5

13.0 13.516.0 18.0 18.0 17.0

18.5

20.020.0

15.0

2010 2011 2012 2013 2014 2015 2016 2017

Payout

98% *

2nd Interim Dividend

(sen)

1st Interim Dividend

(sen)

Special Dividend (sen)

Dividend Yield

Payout

95%

Payout

95%

Payout

92% *

Payout

93%

Bursa Malaysia’s dividend payout ratio of 93% in 2017 is the highest among listed peers regionally.

The total shareholders’ return stood at 415% since its listing and 20.4% in year 2017.

Bursa’s share price has shown a steady growth from its IPO price of RM3.00.

Payout

94%

Payout

93%*

Growing Shareholders’ ValueMaintaining high dividend payout for our shareholders

* Exclude special dividend

54%

213%

442%

143%

244% 244%216% 209%

294% 307%327% 340%

415%Total Shareholders’ Return

Payout

94% Share Price

5

6

7

8

9

10

11

2010 2011 2012 2013 2014 2015 2016 2017

RM

2.6%3.9% 4.3%

6.3% 6.7%

4.1% 3.8%

5.3%

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2017 Market Performance

Securities Market Trend

Derivatives & Islamic Capital Markets Trend

Initiatives

Awards & Accolades

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Securities Market Trend

ADV of Retail

Average Daily Value (OMT) (RM mil)

Velocity (%) ADV of Domestic InstitutionsADV of Foreign Institutions

33 33 28 30 29 30 27 32

1,5731,699

1,454

Market Cap

(RM billion)

1,275 1,285 1,4661,702 1,651 1,695 1,667

1,907

684825 822

992 1,039 990 956

1,291

386

446 354

424530

464371

525

384

428397

499

484537

485

498

2010 2011 2012 2013 2014 2015 2016 2017

1,915

2,0531,991

1,812

2,314

13

57.8 57.7

1.62.7

5.5

13.5 13.415.1

0.7

1.2

1.4

1.72.9

4.5

2010 2011 2012 2013 2014 2015 2016 2017

8.0

10

.1

8.7

10

.8

8.8 12

.3

11

.2

8.4

16

.4

24

.0

30

.4 32

.4 41

.3

44

.7

46

.4

49

.1

2010 2011 2012 2013 2014 2015 2016 2017

1113

8 97

15

96

21 21 23 17 16 22 22 19

Crude Palm Oil Futures

Volatility of Crude

Palm Oil Futures (%)

FBMKLCI Futures

Volatility of FBMKLCI

Futures (%)

Average Daily Contracts (’000) & Volatility

Derivatives & Islamic Capital Markets Trend

50.7

43.516.3

15.2

6.9

3.9

1.20.3

33

5569 78

93109

124 141

No. of Trading Participants

Domestic Foreign

Bursa Suq Al-Sila’ ADV (RM bil)

39.4

34.5

24.8

57.2

2.3

19.6

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2017 Initiatives

27 February

• Revised Tick Rule on Regulated Short Selling (RSS) and the Securities Borrowing and Lending – Negotiated Transactions (SBL-NT) Failed Trade Proposal Framework

23 June

• Revamped participantship structure for Bursa Malaysia Derivatives Clearing Berhad (BMDC)

24 July

• Implement settlements via RENTAS for BMDC.

13 December

• Launched the Islamic Securities Selling and Buying Negotiated Transaction (ISSBNT) framework

15 December

• Introduced new trading features to enhance flexibility in trading strategies

ECOSYSTEM

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2017 Initiatives

26 October

• Launched Real Estate Investment Trust (REIT) Index

6 December

• Launched TradePlus Shariah Gold Tracker ETF

PRODUCTS

25 May

• Launched the Mid and Small Cap (MidS) Research Scheme

25 July

• Launched the Leading Entrepreneur Accelerator Platform (LEAP) for SMEs and sophisticated investors

29 August

• Launched Green Lane Policy incentive to top 30 listed companies

SERVICES

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Gold Medal

Award Recipient

for the “Most

Innovative Non-

Food & Services”

Best Islamic

Exchange

Bursa Malaysia ranked by:

Excellence Award for Overall

CG Performance

Excellence Award for Long-

Term Value Creation

Excellence Award for CG

Disclosure

Merit Award for Best AGM

CEO of the Year

Brand Excellence Islamic Securities Trading

Platform Malaysia 2017: Bursa Malaysia-i -

World’s First End-to-End Shariah Compliant

Investing Platform

Brand Excellence Islamic Commodity Trading

Facilitation Platform Malaysia

Best Commodity Trading Platform

Asia

Best Islamic Exchange Asia

Most Innovative Global End-to-End

Shariah-Compliant Investing Platform

Asia

Best Senior Management Investor

Relations Support

Strongest Adherence to Corporate

Governance

Best Annual Report in Malaysia

Silver Award in the

Finance Sector

Below RM10b Market

Capitalisation

Category

First End-to-End

Shariah-

Compliant

Investment

Platform

2017 Awards & Accolades

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Conclusion

Looking Ahead

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Looking Ahead

Strengthen the Core

Aim to provide more ASEAN-centric products.

Implementation of the T+2 settlement cycle.

Implementation of an Enterprise Data Analytics (EDA) Platform

Build Regional and Global Connectivity

Forge ties with other leading exchanges whilst positioning Malaysia as the HUB of ASEAN.

Develop strategic partnerships with exchanges and market players.

Capitalise on Technology and Information

Create ‘zero distance’ between investors and market participants by capitalising on new technology

and digitalisation.

Focused on delivering enhanced and more cohesive end-to-end experience.

Foster a High-Performance Organisation

Recognise and continually encourage the upskilling of our human capital.

Seek to drive higher productivity, efficiency and effectiveness.

Embrace Sustainability as a Way of Life

Focused on inspiring quality sustainability practices and disclosures among PLCs.

Greater integration of sustainability across the organisation and support the Sustainable

Development Goals.

Thank you

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41st Annual General

Meeting

Auditors’ Report by

Messrs. Ernst & Young

Dato’ Megat Iskandar ShahDRIVING SUSTAINABILITYAND INCLUSIVENESS

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Questions Raised by MSWG

First Letter from MSWG dated 21 March 2018

Question 1

What is Bursa Malaysia’s stand on the introduction of dual-class shares especially since your nearest

competitors, Hong Kong and Singapore are introducing them?

Will the non-introduction of dual-class shares affect your attractiveness in terms of diversity of product

offerings and competitiveness?

Question 2

Given the ongoing debate on the potential for conflict of Interest between your business functions and your

regulatory role, are there plans to mitigate this potential for conflict of interest? What are the existing

structures and processes to mitigate the risk of such conflict?

Question 3

What are the process and structures in place to ensure that shareholders complaints are resolved in a

timely manner?

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First Letter from MSWG dated 21 March 2018 (Cont’d)

Question 4

As stated on page 49 of the Annual Report, the government has announced several measures to stimulate

the Malaysian Capital Market at the Fifth World Capital Markets Symposium on 6 February 2018 which

includes, amongst others, liberalization of regulations relating to margin financing and the introduction of

Intraday Short Selling for all investors.

Please brief on the progress made by Bursa in delivering these initiatives and the expected timeline.

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Second Letter from MSWG dated 26 March 2018

For this forthcoming AGM, the Board has proposed a 100% increase in the Fees for the Non-Executive

Chairman and Non-Executive Directors as well as introducing fixed allowances for the Chairman of some

Board Committees.

We note that for the period 2009 to 2013, the increase in fees from the preceding period was 50% and

for the period 2014 to 2016, the increase was 67%.

We also note that the fees were fixed for 5-year duration, i.e. 2004-2009 and 2009-2013 and the current

fees were only fixed for a duration of 3 years (2014-2016).

We are of the opinion that the 100% increase is unjustifiable and therefore, would like to seek further

clarification and justification as follows:-

Question 1

How was the 100% increase benchmarked against other stock exchanges and financial institutions??

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Second Letter from MSWG dated 26 March 2018 (Cont’d)

Question 2

What was the relevance of comparing with other financial institutions since Bursa Malaysia is a monopoly

when it comes to trading in shares compared to other financial institutions which have to compete with

their peers?

Question 3

How has Bursa Malaysia performed compared to other stock exchanges in the region to justify the fee

increases?

Question 4

Why was the period to revise the fees changed from a 5-year to a 3-year duration?

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AGENDA 1

To receive the Audited Financial Statements

for the financial year ended 31 December

2017 and the Reports of the Directors and

Auditors thereon.

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To re-elect the following Directors who retire by rotation in

accordance with Article 69 of the Company’s Constitution and who

being eligible offer themselves for re-election:

1) Datuk Karownakaran @ Karunakaran a/l Ramasamy

2) Mr. Pushpanathan a/l S.A. Kanagarayar

3) Datin Grace Yeoh Cheng Geok

AGENDA 2 (Resolutions 1, 2 and 3)

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Agenda 2 (Resolution 1)

Re-election of

Datuk Karownakaran

@ Karunakaran a/l

Ramasamy

28



Re-election of

Mr. Pushpanathan a/l

S.A. Kanagarayar

29


Re-election of

Datin Grace Yeoh

Cheng Geok


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To approve the payment of Directors’ fees amounting

to RM300,000 per annum for the Non-Executive

Chairman and RM200,000 per annum for each of the

Non-Executive Directors in respect of the financial

year ended 31 December 2017.

AGENDA 3 (Resolution 4)

31

To approve the payment of benefits payable to the

Non-Executive Chairman and Non-Executive Directors

up to an amount of RM2,400,000, from 29 March 2018

until the next AGM of the Company.


32

To appoint Messrs. Ernst & Young as Auditors of the

Company for the financial year ending 31 December

2018 and to authorise the Board of Directors to

determine their remuneration.


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33

Proposed Alteration or Amendment of the Constitution

of the Company.

“THAT approval be and is hereby given to alter or amend the whole of the

existing Constitution of the Company by the replacement thereof with a new

Constitution of the Company as set out in Appendix A with immediate effect AND

THAT the Board of Directors of the Company be and is hereby authorised to

assent to any conditions, modifications and/or amendments as may be required

by any relevant authorities, and to do all acts and things and take all such steps

as may be considered necessary to give full effect to the foregoing.”

AGENDA 6 (Special Resolution 7)

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34

Any Other Business

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41st Annual General

Meeting

Briefing on

Electronic Voting

28 March 2018DRIVING SUSTAINABILITY

AND INCLUSIVENESS

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Tutorial on E-Voting

System

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41st Annual General

Meeting

POLL VOTING


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Adjourned

41st Annual

General Meeting

POLL RESULTS


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Conclusion of the

41st Annual

General Meeting

Thank You


Documents

41 Annual General Meeting - listed companybursa-cn.listedcompany.com/misc/41st_AGM_Slides.pdfAverage Daily Contracts (’000) & Volatility Derivatives & Islamic Capital Markets Trend