Toronto-dominion Bank · TSX:TD

Toronto-dominion Bank — TD Bank Group — Investor Day (April 2012)

47 slides from Toronto-dominion Bank's investor day presentation, Apr 17, 2012

1. Slide 1: All Segment Investor Day

   All Segment Investor Day April 17, 2012

2. Slide 2: Caution regarding forward-looking statements

   Caution regarding forward-looking statements From time to time, the Bank makes written and/or oral forward-looking statements, including in this presentation, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission, and in other communications. In addition, represent

3. Slide 3: Agenda

   Agenda  Introduction – Rudy Sankovic, Senior Vice President, Investor Relations  Opening remarks • Ed Clark, Group President and Chief Executive Officer • Colleen Johnston, Group Head Finance, Chief Financial Officer  Business unit presentations and fireside chats • Canadian Personal & Commercial

4. Slide 4: Ed Clark

   Ed Clark Group President, TD Bank Group Chief Executive Officer

5. Slide 5: Colleen Johnston

   Colleen Johnston Group Head Finance, TD Bank Group Chief Financial Officer

6. Slide 6: Key takeaways

   Key takeaways 1 Proven performance 2 Focus on growth opportunities Build competitive advantage 3 through productivity management Targeting 7-10% adjusted EPS growth over the medium term 6

7. Slide 7: Proven performance

   Proven performance 14% Better return on RWA5 Impressive CAGR growth Adj. EPS1 2.95% 2002-2011 2.25% Leading total shareholder returns2 1.55% Oct 31, 2002 – Oct 31, 2011 15% 12% dividend 10% CAGR since 2002 TD Canadian U.S. Peers 4 Peers 3 -2% Canadian U.S. Peers4 Peers3 1. The Bank utilizes non-GAAP

8. Slide 8: Environment presents headwinds

   Environment presents headwinds  Investments in growth will support Slowing loan growth market share gains in Canada and U.S. in Canada  New businesses coming on stream Lower for longer interest rates  Opportunity for fee growth Margin compression in retail Demanding  …but higher costs, revenue a

9. Slide 9: Owning the productivity agenda

   Owning the productivity agenda Focusing on positive 2013-2014 productivity operating leverage enhancements  Focus on best run capabilities Revenue ($)  Leverage scale Expenses ($)  Optimize North American purchasing power 00 01 02 03 04 05 06 07 08 09 10 11  Leverage capabilities through enablin

10. Slide 10: Growth opportunities

    Growth opportunities Canadian P&C U.S. P&C  Retail banking  Optimize distribution Consistent strategy  Business banking  De novo store growth Regional banking  Lead with service and  Auto lending  Cross-sell convenience  Credit cards   Leverage TD brand across all segments Wealth & Insuran

11. Slide 11: Tim Hockey

    Tim Hockey Group Head, Canadian Banking, Auto Finance and Credit Cards

12. Slide 12: Proven performance

    Proven performance Leading service & convenience Near triple earnings Canadian Personal & Commercial Banking net income ($MM) 6th JD Power 14% Award win in a row1  8-yr CAGR 7th Synovate Best $3,071 Banking win in a row2 Taking market share $1,073  410bps 25.0% earnings share 03 04 05 06 07 08 09

13. Slide 13: Consistent strategy

    Consistent strategy Continue to win in retail banking Higher growth opportunities Where we  Business banking compete  Auto lending  Credit cards Service and convenience model How we win Grow revenue faster than expenses Leverage TD partners to cross-sell 13

14. Slide 14: Continue to win in retail banking

    Continue to win in retail banking New distribution investments  40% of new branch openings (all Maturing branch performance banks) in the last five years were TD1 Newer branches see breakeven in  Expect to continue to opening 20+ less than 3 years and payback in branches a year less than 5 years 

15. Slide 15: Canadian opportunity: Business Banking

    Canadian opportunity: Business Banking Significant investment Market share gains1 Loans  500 new #5 #2 business bankers  8 new business in ‘06 360 bps in ‘11 banking centres Deposits Increased bottom line Only bank to increase market share in recent years2 300 bps 13.2% 5-yr NIAT CAGR 12.4% Aver

16. Slide 16: North American opportunity: TD Auto Finance

    North American opportunity: TD Auto Finance Canadian auto lending U.S. auto lending  8,000 dealers across a coast-to-coast 41% footprint earnings CAGR  Diversified brands and pent-up demand  Optimizing our model given increased 27% competition and lower margins volume CAGR $13B 06 07 08 09 10 11

17. Slide 17: North American opportunity: Credit cards

    North American opportunity: Credit cards Leading market share in Canada  TD Canada Trust best-in-class 19% branch distribution share1  MBNA’s direct origination and servicing expertise  600,000 net-new cross-sell opportunities with MBNA Untapped U.S. potential <1%  1,300 store distribution chann

18. Slide 18: Committed to operational excellence

    Committed to operational excellence Enhancing productivity Operations workforce efficiency 2007 - 2011  Manage expenses prudently  Leverage our scale 10%  Invest in workflow technologies TDCT CAGR volumes  Improve processes via Lean Six Sigma tools  3% Industry-leading efficiency ratio Product

19. Slide 19: Key takeaways

    Key takeaways  We have higher growth opportunities that complement our strong retail base  Our investments in the future are paying off  We will stay true to our core strategy  Deliver legendary service and convenience  Drive operational efficiencies  Focus on long-term growth Expect 7-10% ear

20. Slide 20: Mike Pedersen

    Mike Pedersen Group Head, Wealth Management, Insurance and Corporate Shared Services

21. Slide 21: Strong franchise – poised for growth

    Strong franchise – poised for growth TD Wealth TD Insurance Earnings ($MM) Earnings ($MM)1 28% CAGR $569 16% $345 $541  CAGR1 2009-2011 009 9 10 11 11 Leading market positions Leading market positions Online brokerage in Canada2 Direct writer of home & auto insurance in Canada6 #1 Execution-only b

22. Slide 22: Unique and winning strategy

    Unique and winning strategy Wealth  Mass Affluent and High Net Worth TD clients in Canada and U.S.  Self-directed investors in selected markets  Institutional asset management in Canada Where we compete Insurance  Underserved Canadian mass market  TD customers  Products that meet our risk appe

23. Slide 23: Legendary client experience will fuel growth

    Wealth & Insurance: how we win Legendary client experience will fuel growth Wealth Client Experience JD Power recognized +5x Record performance! TD Private Investment Advice #1 among Big 6 with Canadians with wealth in excess of $500K1 09 10 11 Q1/12 Sustaining the trajectory Insurance Customer Expe

24. Slide 24: Leveraging TD brand and client base

    Canadian Wealth: how we win Leveraging TD brand and client base Built strong Advice capability Wealth penetration Under-penetrated 25%  ~2,000 face-to-face advisors TD client base1 TDCT client opportunity 75% LeadingAsset Leading AssetManagement Management franchise franchise Referrals increase our

25. Slide 25: Leveraging TD brand and client base

    U.S. Wealth: how we win Leveraging TD brand and client base $1T U.S. opportunity $950B1 $960B2 We have only penetrated 3% of U.S. Mass Affluent and High Net Worth3 High Net Worth client base High Net Worth3 Mass U.S. Wealth strategy Affluent4 Mass Affluent4 TD Bank TD Wealth  Focusing on High Net W

26. Slide 26: Direct distribution advantage

    Wealth: how we win Direct distribution advantage TD: the clear leader in Direct investing market projected direct investing to grow at 7% CAGR – faster  TD Direct Investing Canada than any other Wealth segment3  TD Direct Investing U.K./International  TD Ameritrade1 Investing in capabilities to w

27. Slide 27: Leveraging TD brand and client base

    Insurance: how we win Leveraging TD brand and client base Customer profitability TD brand draws clients Joint1 to TD Insurance TD2  78% of TD Insurance customers are also joint customers of TDCT or 11 million TD customers TD Wealth  Untapped opportunity with TD customer Industry under-served mass

28. Slide 28: Direct distribution advantage

    Insurance: how we win Direct distribution advantage More customers are choosing direct TD Affinity premium growth2 channel in Canada  9% Change in channel share 2000-20101 CAGR Direct +13% Captive Brokers Agents -5% 06 11 -9% TD is the #1 direct response insurer TD Insurance premiums have outgrown

29. Slide 29: Conservative risk appetite

    Conservative risk appetite Wealth Insurance  Advice in footprint only  No distribution through brokers  Conservative client suitability policies  Avoid products with tail risk  Avoid products with tail risk  Short duration fixed income, no equities  Prudent treasury management  Conservative

30. Slide 30: How we win

    How we win  Legendary TD client experience  Leverage TD brand and client base  Direct distribution  Conservative risk appetite Positioned for double-digit earnings growth over the medium term 30

31. Slide 31: Bharat B. Masrani

    Bharat B. Masrani Group Head, U.S. Personal and Commercial Banking

32. Slide 32: TD Bank is a top bank in the U.S.

    TD Bank is a top 10 bank in the U.S.1 Winning customers over Building an enduring franchise U.S. Personal & Commercial Banking adjusted earnings5 ($MM)  Legendary customer service  Unparalleled convenience 19%  3-YR CAGR 2009-2011 $1,345 $1,600 Taking market share 72% 50% 34% US$ $130 C$ $158 $1,

33. Slide 33: Consistent strategy

    Consistent strategy Retail and commercial banking along the Eastern Seaboard Where we Operate in 5 of the top 10 MSAs and compete 7 of the 10 wealthiest states Focused on higher growth markets and products Unique value proposition Regional banking model How we win De novo growth Accelerate cross-sel

34. Slide 34: Significant growth opportunity

    Significant growth opportunity >$1.6T1 MSA Deposit market1 Deposit market share Rank Mortgage originations2 Share of market originations deposits Boston Metro $166B 4.4% 5 $29B 2.4% Miami-Fort Lauderdale $158B 2.0% 13 $25B 0.9% New York Metro $1,051B 3.5% 8 $79B 2.1% $200B2 New York City3 $212B 5.1%

35. Slide 35: Regional banking model drives success

    Regional banking model drives success Customer-centric model Business won Retail Commercial  Displaced bank group  Comprehensive credit facilities  Full cash management Pipeline opportunities  TD Securities  Private Banking Wealth Corporate  Bank at Work  Custodial/Investment  Provides ACCES

36. Slide 36: De novo strategy captures deposit share

    De novo strategy captures deposit share Maturing store growth Winning in the New York market NYC deposit growth (US$)  In 2011, 12% of stores were maturing and drove a significant $11.6B percentage of overall deposit growth 58%  10-yr CAGR1 35 new stores in 2012 $0.1B Targeting high opportunity 01

37. Slide 37: Strong customer experience and value proposition

    Strong customer experience and value proposition Continuing to deliver Industry-leading sales Record performance! performance and value proposition  Launched new retail and small business checking products Commerce conversion  Outperforming peers for checking May-09 Nov-09 Jan-12 account sales Mit

38. Slide 38: Deepen customer relationships through cross-sell

    Deepen customer relationships through cross-sell Engaging customers early and often Deepening penetration New households’ products & services1  Implemented retail sales model with training, coaching, product knowledge and incentives 3.5 2.8 25%  Invested significantly in infrastructure  Leveragi

39. Slide 39: Driving efficiencies

    Driving efficiencies Enhancing productivity Driving efficiencies while Customer capture growing through  Digital imaging capability at the teller line headwinds  Better customer experience  More seamless processing Efficiency ratio  Permanent cost reductions 66% 64% 62% 60% Continuing to build f

40. Slide 40: Key takeaways

    Key takeaways  Unique value proposition  customer sales and service experience  Unparalleled convenience  Competitive product suite  Significant opportunity to continue to take share through organic growth  Cross-sell initiatives progressing as franchise matures  Continue to drive productivit

41. Slide 41: Bob Dorrance

    Bob Dorrance Group Head, Wholesale Banking

42. Slide 42: Consistent strategy

    Consistent strategy Canada  Be the top-ranked integrated investment dealer U.S.  Extend goals of the Canadian franchise Where we  Wholesale dealer to U.S. P&C compete  Grow U.S. fixed income and foreign exchange Outside North America  Niche player in franchise/client-driven businesses (energy a

43. Slide 43: Leading domestic investment dealer

    Leading domestic investment dealer Top ranked dealer Franchise businesses  Diversified business mix Block Trader on TSX1 Aligned #1 Equity Underwriter2  North American focus with TD  Customer oriented Seven years as Top-Rated Prime Top Equity Block Banker in Canada3 Trader Executing against our g

44. Slide 44: Growing the TDS franchise in the U.S.

    Growing the TDS franchise in the U.S. Grow with U.S. retail partners  Leverage existing customer relationships  Help evolve U.S. retail bank’s corporate banking business Build a U.S. dealer  Capture more of the transaction life-cycle  Complete build of USD fixed  Support U.S. product lines with

45. Slide 45: Maintain focus globally

    Maintain focus globally Extend competitive advantages outside North America  Provide liquidity and funding to European super-sovereigns and agencies in dollar-based currencies Leverage  Leverage energy and mining power of franchises to global investors TD and markets Franchise  Expand precious me

46. Slide 46: Key takeaways

    Key takeaways Investment U.S. Europe/ Banking 10% Asia Fixed 14% A diversified With a 31% Income 26% portfolio of Equities Credit North American Canada businesses 27% FX 7% focus 76% 8% Commodity 1% Aligned with our TD partners Investing for growth Based on revenue for the year ended October 31, 201

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TD Bank Group — Investor Day (April 2012) on 6ix