Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — The Toronto-Dominion Bank — Merger or Acquisition (October 2007)
10 slides from Toronto-dominion Bank's merger presentation, Oct 2, 2007
Slide 1: TD Acquires Commerce Bancorp
TD Acquires Commerce Bancorp October 2, 2007 Forward-looking statements and additional information The information presented may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and comparable “safe harbour” of applicable Canadian legislat
Slide 2: Unique and compelling opportunity
Unique and compelling opportunity Delivers critical mass in the U.S. - North American powerhouse Impressive footprint & market share in contiguous region Opportunity for accelerated organic growth Complementary North American retail banking business model Superior value creation opportunity Outstand
Slide 3: Complementary business models and strengths
Complementary business models and strengths TD, TD Banknorth and Commerce can all contribute • Product suite expansion • Commercial/Wealth/Wholesale • Asset and liability management • Deposit growth platform • Asset gathering • De novo branch expertise • Integration experience • WOW! Fan experience
Slide 4: Low risk transaction
Low risk transaction Low loan-to-deposit ratio + Achievable synergies + Cultural compatibility = Reduced risk 7 Major North American franchise 7th largest bank by branches in North America Pro Pro forma forma branches branches Rank Company Bank branches 1 Bank of America 6,189 2 Wachovia 3,419 3 Wel
Slide 5: Key terms and metrics
Key terms and metrics Value per Commerce share: US$42.001 Exchange Ratio: Fixed exchange ratio. Each outstanding Commerce share will receive 0.4142 shares of TD and US$10.50 in cash Aggregate transaction value: US$8.5 billion on 203MM fully diluted Commerce shares Consideration mix: 75% stock, 25% c
Slide 6: Pro forma earnings impact
Pro forma earnings impact GAAP and adjusted earnings 2008 & 2009, C$MM1 2008 2009 Pro forma GAAP net income $4,236 $5,093 Current TD GAAP EPS estimate $5.74 $6.50 Pro forma TD GAAP EPS estimate $5.46 $6.28 GAAP EPS accretion/(dilution) to TD $(0.28) $(0.22) 2008 2009 Pro forma adjusted net income $4
Slide 7: Impressive combined footprint
Impressive combined footprint TD Banknorth Commerce Over 1,000 branches 13 Scale in key markets Operating in 5 of the largest and wealthiest urban markets in the U.S. Top 10 US MSAs by deposits¹ Top 10 US MSAs by deposits¹ Deposits and stores by MSA Population Adj. deposits Adj. deposits growth US$B
Slide 8: Clear focus during integration
Clear focus during integration X Management team • TD Banknorth & Commerce teams remain in place • Dennis DiFlorio and Bob Falese report to Bharat Masrani Y Consolidate TD Banknorth New Jersey, Philadelphia Z Deliver cost synergies • Align infrastructure and integrate back office [ Execute organic g
Slide 9: Unique and compelling opportunity
Unique and compelling opportunity Delivers critical mass in the U.S. - North American powerhouse Impressive footprint & market share in contiguous region Opportunity for accelerated organic growth Complementary North American retail banking business model Superior value creation opportunity Outstand
Slide 10: Transaction comparables
Transaction comparables Bank Bank transactions transactions greater greater than than $6 $6 billion billion since since 2004 2004 (excludes (excludes MOEs) MOEs) Price/NTM² EPS NTM² PEG Price to: Tangible Core w/o w/ w/o w/ Book book deposit Premium¹ synergies synergies synergies synergies value val
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