TD Ameritrade Holding Corporation (NYSE: AMTD). Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC/NFA, and TD Ameritrade

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1 TD Ameritrade Holding Corporation (NYSE: AMTD). Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC/NFA, and TD Ameritrade Clearing, Inc., member FINRA/SIPC, subsidiaries of TD Ameritrade Holding Corp. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.

2 Safe Harbor This document contains forward-looking statements within the meaning of the federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws. In particular, any projections regarding our future revenues, expenses, earnings, capital expenditures, effective tax rates, client trading activity, accounts or stock price, as well as the assumptions on which such expectations are based, are forwardlooking statements. These statements reflect only our current expectations and are not guarantees of future performance or results. These statements involve risks, uncertainties and assumptions that could cause actual results or performance to differ materially from those contained in the forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to: general economic and political conditions and other securities industry risks, fluctuations in interest rates, stock market fluctuations and changes in client trading activity, credit risk with clients and counterparties, increased competition, systems failures, delays and capacity constraints, network security risks, liquidity risks, new laws and regulations affecting our business, regulatory and legal matters and uncertainties and other risk factors described in our latest Annual Report on Form 10-K, filed with the SEC on Nov. 22, These forward-looking statements speak only as of the date on which the statements were made. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by the federal securities laws. 2

3 Our Mission To Be The Better Investment Firm For Today s Investor 3

4 Six Investment Themes for TD Ameritrade Long-Term Themes 1. Unique and differentiated business model 2. Market leadership in trading 3. Premier asset gatherer 4. Unique relationship with TD Key Takeaways Low financial risk conservative balance sheet and strong pre-tax margins Significant operating leverage #1 in market share (1) thinkorswim platform Secular trends strong Five consecutive years of double-digit growth Economics of deposit banking without capital requirements Significant free cash flow 5. Well-positioned for rising interest rates $96B in interest rate sensitive assets (2) 6. Good stewards of shareholder capital Primary uses of cash: dividends, buybacks, acquisitions and investments in the business Continue to Build Long-term Earnings Power and Deploy/Return Capital to Further Enhance Shareholder Value (1) Source: Internally estimated daily average revenue client trades (DARTS) based on last twelve months publicly available report s for E*Trade Financial and Charles Schwab. (2) Interest rate sensitive assets consist of spread-based assets and money market mutual funds. Balances as of Sep. 30,

5 1. Unique and Differentiated Business Model EPS (1) Pre-Tax Margin Forecasted Pre-Tax Margin Range (2) Forecasted Range (2) 50% 40% 30% $ % $ % $ % $ % $1.40 $ % $1.40 $1.20 $1.00 $0.80 Business model combined with TD Bank (3) relationship drives: Low capital intensity High return on equity Strong cash and capital generation 20% 10% 0% FY10 FY11 FY12 FY13 FY14 (2) $0.60 $0.40 $0.20 $0.00 Cash generation approximates net income Scalable business model 97+% of transactions are online Lean/sourcing initiatives (1) Earnings per diluted share (EPS). (2) FY14 forecast per 10/29/13 outlook statement. (3) TD Ameritrade, Inc. and TD Bank, N.A. are affiliated through their parent companies. 5

6 2. Market Leadership in Trading (1) Client Trades Per Day & Activity Rate (2) % Average Client Trades Per Day (K) % Derivatives (3) of Total Trades per Day % 36% 360 Forecasted Range (K) (4) 39% 200 FY10 FY11 FY12 FY13 (4) FY14 Activity Rate (2) 6.9% 7.2% 6.3% 6.3% % (4) % 40% 35% 30% 25% 20% 15% 10% Improved macroeconomic environment Increasing volatility Growth Strategies Tiered platform strategy Product proliferation: Record Derivatives ~39% of fiscal 2013 DARTs Record Mobile ~9% of fiscal 2013 DARTs Fiscal 2014 Outlook Activity Rate % October DARTs of 420K (1) Source: Internally estimated daily average revenue client trades (DARTS) based on last twelve months publicly available reports for E*Trade Financial and Charles Schwab. (2) Funded account activity rate (AR%). Average client trades per day during the period divided by the average number of total funded accounts during the period. (3) Derivatives include options, futures, and foreign exchange (Forex) trades per day. (4) FY14 forecast per 10/29/13 outlook statement. 6

7 3. Premier Asset Gatherer Net New Client Assets ($B) (1) Forecasted Range ($B) (2) $70 $60 $50 $40 $30 $20 $10 $27 $34 $41 $41 $50 $61 $39 $0 FY09 FY10 FY11 FY12 FY13 FY14 Growth Rate (3) 10% 11% 12% 11% 10% 7-11% (2) Industry leading asset gatherer (4) Record net new client assets of $50B Five consecutive years of double-digit growth Record client assets of $556B, up 18% yearover-year Sales and service culture Strong momentum in both retail and institutional Retail driven by: New relationships Cross-selling High asset retention rates Institutional driven by new and existing RIAs Fiscal 2014 Outlook Long-term goal 7-11% growth (1) Net new assets (NNA) consists of total client asset inflows, less total client asset outflows, excluding activity from business combinations. Client asset inflows include interest and dividend payments and exclude changes in client assets due to market fluctuations. Net new assets are measured based on the market value of the assets as of the date of the inflows and outflows. (2) FY14 forecast per 10/29/13 outlook statement. (3) NNA growth rate is annual net new assets as a % of client assets as of the beginning of the period. (4) Source: Annual NNA growth rate as a % of client assets as of the beginning of the period based on last twelve months of publicly available reports for E*Trade Financial and Charles Schwab. 7

8 Investment Product Fees (1) Investment Product Fees ($M) (1) Forecasted Range ($M) (2) Fiscal 2013 $325 $300 $310 Year-over-year average balance growth of 31%; revenue growth of 28% $275 $250 $225 CAGR: 25% $250 $285 Amerivest and AdvisorDirect performing well Strong mutual fund growth $200 $175 $196 Fiscal 2014 Outlook $150 $166 Targeting 15-25% growth $125 $100 $75 $129 FY10 FY11 FY12 FY13 FY14 (2) (1) Market fee-based plus money market mutual fund revenue. (2) FY14 forecast per 10/29/13 outlook statement. 8

9 4. Unique Relationship with TD TD Owns ~ 42% of TD Ameritrade (1) Insured deposit account (IDA) (2) agreement Revised agreement effective January 1, 2013 July 1, 2018 Money market mutual funds provided by TD Asset Management Cross-selling to TD Bank customers Access to U.S. markets for TD Waterhouse Canada/UK clients (1) As of Sep. 30, (2) Client cash is held in FDIC-insured deposit accounts (IDA) at TD Bank, N.A. and TD Bank USA, N.A. TD Ameritrade, TD Bank, N.A., and TD Bank USA, N.A. are affiliated through The Toronto-Dominion Bank. 9

10 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 5. Well-Positioned for Rising Interest Rates Approaching $100B Money Market Mutual Funds Interest Earning Assets IDA (1) $66 $9 $13 $44 $77 $8 $12 $57 Ending Balances ($B) $83 $5 $15 $63 $96 $5 $17 Float $16B $73 Fixed $57B Sep '10 Sep '11 Sep '12 Sep '13 (3) Immediate benefit with Fed Funds increases Benefit over time with Yield Curve due to re-pricing of laddered investment portfolio Record Interest rate sensitive assets (2) of $96B, up 16% year over year Ending client cash as % of client assets at 16.5% Overall consolidated duration of 2.3 years Sensitivity model estimated annual impact to EPS (4) Yr. 1 =+$0.36 (5) Yr. 2 =+$0.44 (5) Yr. 3 =+$0.50 (5) (1) Client cash is held in FDIC-insured deposit accounts (IDA) at TD Bank, N.A. and TD Bank USA, N.A. TD Ameritrade, TD Bank, N.A., and TD Bank USA, N.A. are affiliated through The Toronto-Dominion Bank. (2) Interest rate sensitive assets consist of spread-based assets and money market mutual funds. Ending balances as of Sep. 30, (3) Ending balances as of Sep. 30, 2013 consisted of $8.9B in client margin balances, $5.5B in segregated cash, and $2.6B in other balances. (4) Earnings per diluted share (EPS). (5) Impact on spread-based and money market mutual fund revenues in the next twelve months following an interest rate increase. Assumes fed funds increase results in a parallel shift to the LIBOR/SWAP yield curve. Sensitivity relates to first 100bps increase on balances as of 9/30/13. * Certain totals may not foot due to rounding. 10

11 6. Good Stewards of Shareholder Capital Strong Cash Generation and Strong Financial Position $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 Net Income ($B) Returned/Deployed ($B) $0.7 $0.7 $0.6 $0.6 $0.6 $0.5 $0.4 $0.3 73% 81% 56% 107% FY10 FY11 FY12 FY13 (1) Moody s upgraded to A3 in May 2013 Fiscal 2013 Returned 107% of earnings to shareholders Paid $0.86 per share cash dividends Paid down $250M of maturing debt Fiscal 2014 Outlook Increasing quarterly cash dividend by 33% to $0.12/share Declared special cash dividend of $0.50/share (1) Cash used for M&A, debt repayments, share repurchases, and dividends divided by net income. Excludes shares repurchased for payroll taxes on equity award distributions. 11

12 Fiscal 2014 Focus Improved macroeconomic environment Build on asset gathering momentum Continued leadership in trading Grow investment product fees (1) Continued expense discipline while investing in the future Return of capital strategy Increasing quarterly cash dividend by 33% to $0.12/share Declared special cash dividend of $0.50/share Fiscal 2014 EPS (2) Outlook Range: $1.20-$1.40 (3) (1) Market fee-based plus money market mutual fund revenue. (2) Earnings per diluted share (EPS). (3) FY14 forecast per 10/29/13 outlook statement. 12

13 Six Investment Themes for TD Ameritrade 1. Unique and differentiated business model 2. Market leadership in trading 3. Premier asset gatherer 4. Unique relationship with TD 5. Well-positioned for rising interest rates 6. Good stewards of shareholder capital Continue to Build Long-term Earnings Power and Deploy/Return Capital to Further Enhance Shareholder Value 13

14 TD Ameritrade Holding Corporation (NYSE: AMTD). Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC/NFA, and TD Ameritrade Clearing, Inc., member FINRA/SIPC, subsidiaries of TD Ameritrade Holding Corp. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.

15 Fiscal 2014 Outlook Range (1) Financial Macro Assumptions Key Metrics $1.40 EPS (2) 10% Market Growth NNA (4) $61B / 11% (5) High 40% Pre-Tax Margin Activity Rate (3) of 7.0% TPD 425K No change in Fed Funds NIM (6) 1.50% / IDA (7) 1.18% Increasing Yield Curve $1.20 EPS 0% Market Growth NNA $39B / 7% Low 38% Pre-Tax Margin Activity Rate of 6.0% TPD 365K No change in Fed Funds or Yield Curve NIM 1.40% / IDA 1.08% (1) See outlook statement published 10/29/2013. (2) Earnings per diluted share (EPS). (3) Funded account activity rate. Average client trades per day during the period divided by the average number of total funded accounts during the period. (4) NNA (net new assets) consists of total client asset inflows, less total client asset outflows, excluding activity from business combinations. Client asset inflows include interest and dividend payments and exclude changes in client assets due to market fluctuations. Net new assets are measured based on the market value of the assets as of the date of the inflows and outflows. (5) NNA growth rate is annual net new assets as a % of client assets as of the beginning of the period. (6) NIM (net interest margin) is a measure of the net yield on our average spread-based assets. (7) Client cash is held in FDIC-insured deposit accounts (IDA) at TD Bank, N.A. and TD Bank USA N.A. TD Ameritrade, TD Bank, N.A. and TD Bank USA, N.A. are affiliated through The Toronto Dominion Bank. 15

16 Sensitivity Estimated Annual Impact to EPS (1) 3K average client trades per day = $ % funded activity rate (2) = $0.01 $4.3B fee-based assets (3) = $0.01 $0.6B spread-based assets (4) = $ bps fed move = +$0.09 (5) (1) Earnings per diluted share (EPS). (2) Funded account activity rate. Average client trades per day during the period divided by the average number of funded accounts during the period. (3) Client assets invested in money market mutual funds, other mutual funds and Company programs such as AdvisorDirect and Amerivest, on which we earn fee revenues. (4) Client and brokerage-related asset balances, including client margin balances, segregated cash, insured deposit account balances, deposits paid on securities borrowing and other cash and interest-earning investment balances. (5) Impact on spread-based and money market mutual fund revenues in the first twelve months following an interest rate increase. Assumes fed funds increase results in a parallel shift to the LIBOR/SWAP yield curve. Sensitivity relates to first 100bps increase on balances as of 9/30/13. 16

17 Activity Rate (1) Thirteen Quarter Average 6.6% Activity Rate (1) Avg. Trades Per Day (K) 13 QTR Avg. Activity Rate (1) 9.0% 439 FY14 Outlook Range (2) : Activity Rate (1) : 6.0%-7.0% Avg. Trades Per Day: % % 7.0% 6.0% % 8.0% % 7.4% % % % % % % % 5.7% 5.8% % SepQ '10 DecQ '10 MarQ '11 JunQ '11 SepQ '11 DecQ '11 MarQ '12 JunQ '12 SepQ '12 DecQ '12 MarQ '13 JunQ '13 SepQ ' (1) Funded account activity rate (AR%). Average client trades per day during the period divided by the average number of total funded accounts during the period. (2) Per outlook statement published 10/29/13. 17

18 Cash as % of Client Assets Consistently 15-20% Avg. Client Cash ($B) Avg. Client Cash as % of Client Assets $100 $95 $90 $85 $80 $75 $70 $65 $60 $55 $ % 21.1% 23.3% 21.5% $50.5 $51.7 $52.0 $ % 18.8% Relatively high % s due to depressed market postcrash Fall % $56.4 $57.6 $58.8 $ % 18.2% $61.3 $63.7 $66.2 $ % 16.5% 16.3% $72.5 $74.9 $75.8 $ % 18.8% 17.6% $76.8 $80.9 $ % 16.8% 17.1% 16.7% $85.8 $ % 16.7% 25% 20% 15% $45 $40 $35 $30 SepQ '08 DecQ '08 MarQ '09 JunQ '09 SepQ '09 DecQ '09 MarQ '10 JunQ '10 SepQ '10 DecQ '10 MarQ '11 JunQ '11 SepQ '11 DecQ '11 MarQ '12 JunQ '12 SepQ '12 DecQ '12 MarQ '13 JunQ '13 SepQ '13 10% 18

19 IDA (1) Net Revenue Trend ($B) $80 $75 $70 $65 $60 $55 $50 $155 $170 Avg. IDA Balances ($B) $180 $177 $179 $188 IDA Revenue ($M) (1) (1) Total Revenue FY10: $682 Total Revenue FY11: $763 12% YoY Growth $197 $200 $54.0 Total Revenue FY12 : $828 9% YoY Growth $205 $209 $206 $207 $205 $58.8 $58.4 $59.0 $61.4 Total Revenue FY13 : $804-3% YoY Growth $64.2 $200 $199 $201 $67.1 $68.6 $72.0 ($M) $225 $200 $175 $150 $125 $45 $40 $35 $30 $32.6 $39.3 $41.8 $43.1 $44.7 $46.8 $48.6 $100 $75 $50 $25 DecQ '09 MarQ '10 JunQ '10 SepQ '10 DecQ '10 MarQ '11 JunQ '11 SepQ '11 DecQ '11 MarQ '12 JunQ '12 SepQ '12 DecQ '12 MarQ '13 JunQ '13 SepQ '13 $25 Net Yield 1.87% 1.73% 1.70% 1.61% 1.56% 1.60% 1.60% 1.45% 1.37% 1.42% 1.38% 1.32% 1.25% Avg. Fed Funds (2) 0.12% 0.14% 0.19% 0.19% 0.19% 0.16% 0.09% 0.08% 0.07% 0.11% 0.16% 0.15% 0.16% 5YR Swap Rates (2) 2.65% 2.70% 2.49% 1.76% 1.74% 2.32% 2.07% 1.44% 1.32% 1.17% 1.08% 0.86% 0.81% 0.96% 1.08% (1) Client cash is held in FDIC-insured deposit accounts (IDA) at TD Bank, N.A. and TD Bank USA, N.A. TD Ameritrade, TD Bank, N.A., and TD Bank USA, N.A. are affiliated through The Toronto-Dominion Bank. (2) Source: Bloomberg quarterly average. *Certain totals may not foot due to rounding. 1.19% 0.14% 1.15% 0.12% 1.09% 0.08% 1.67% 19

20 Libor/Swap Yield Curve 11 Quarter trend Sep Q 13 spreads 2 YR vs. 5 YR YR vs. 7 YR Oct GI FY14 Projection (3) MarQ '12 JunQ '12 SepQ '12 DecQ '12 MarQ '13 JunQ '13 SepQ '13 DecQ '13 MarQ '14 JunQ '14 SepQ '14 (1) (1) (1) (2) 2 YR 5 YR 7 YR Fed Funds (1) Source: Bloomberg daily (end of period). (2) Source: Board of Governors of the Federal Reserve website Daily Fed Funds Effective Rate (end of period). (3) Assumes October 2013 Global Insight UST rate forecast adjusted for the current 30-day avg. swap spread. 20

21 TD Ameritrade Holding Corporation (NYSE: AMTD). Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC/NFA, and TD Ameritrade Clearing, Inc., member FINRA/SIPC, subsidiaries of TD Ameritrade Holding Corp. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.