Toronto-dominion Bank · TSX:TD

Toronto-dominion Bank — TD Bank Group — Investor Presentation (March 2012)

42 slides from Toronto-dominion Bank's investor presentation, March 2012

1. Slide 1: Investor Overview Presentation

   Investor Overview Presentation March 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: Contents

   Contents TD Bank Group  Overview  Key Businesses  Economic Update  Appendix 2

4. Slide 4: Key Takeaways

   Key Takeaways Simple Strategy, Consistent Focus Building Building the the Better Better Bank Bank North North America America • Top 10 Bank in North America1 • Leverage platform and brand for growth • One of the few banks in the world rated Aaa by Moody’s2 • Strong employment brand Retail Retail Ear

5. Slide 5: TD Bank Group: A Top Bank in North America

   TD Bank Group A Top 10 Bank in North America Compared to: 1 Q1 2012 Canadian North American (In USD Billions)2 Peers7 Peers8 Total Assets $771B 2nd 6th Total Deposits $468B 2nd 6th Market Cap (as of Jan 31, 2012) $71B 2nd 6th Adj. Net Income3 (Trailing 4 Quarters) $6.7B 1st 5th Rpt. Net Income (Trai

6. Slide 6: Q1 2012 Highlights

   Q1 2012 Highlights Key Themes Net Income $MM (Adjusted, where applicable)1  Record adjusted EPS Q1/12 QoQ YoY Retail 2 1,551 12% 11%  Delivered positive adjusted operating Wholesale 194 -31% -17% leverage Corporate 17 +100% +100%  Actively managing expenses while Adjusted Net Income $ 1,762 6% 9%

7. Slide 7: Snapshot of TD

   Snapshot of TD Our Businesses  Canadian Personal & Commercial  Wealth & Insurance  U.S. Personal & Commercial  Wholesale Banking Our Results Wholesale 11%  Adjusted Earnings1 YTD 2012 of C$1,762, up 9% YoY  Adjusted EPS1 of $1.86, up 8% YoY U.S. P&C 4 Canadian 20% P&C 4 49% Wealth & 2 Insuranc

8. Slide 8: Tier 1 Capital Ratio

   Tier 1 Capital Ratio Highlights Tier 1 Capital Ratio2 12.7% 12.7% 12.9% 13.0%  Strong capital position 11.6%  Tier 1 capital ratio down as expected in the quarter  Continued organic growth in capital  Well-positioned for evolving regulatory environment Q1/11 Q2/11 Q3/11 Q4/11 Q1/12  Risk Weight

9. Slide 9: Simple Strategy, Consistent Focus, Superior Execution

   Simple Strategy, Consistent Focus, Superior Execution Adjusted Earnings1 (C$MM) CDN GAAP2 IFRS 2 & Segment Transfer 3 $6,251 $6,432 GR % r CA s: 13 e a in g % 5-y Earn PS: 8 $5,228 e d E u s t t ed Adj Adjus $4,716 $4,189 $3,813 $3,376 $1,762 2006 2007 2008 2009 2010 2011 2011 2011 Q1 2012 Retail as

10. Slide 10: Strong Focus on Risk-Return

    Strong Focus on Risk-Return Return on Risk-Weighted Assets1 Q1 2012 2.90% 2.31% 1.65% 2 4 TD Canadian Peers 3 U.S. Peers Better return for risk undertaken 1. Adjusted on a comparable basis to exclude identified non-underlying items. Return on risk-weighted assets is adjusted net income available to

11. Slide 11: Strong, Consistent Dividend History

    Strong, Consistent Dividend History Q1/12 Q1/12 Announced Announced $0.04 $0.04 Dividends Per Share dividend increase11 dividend increase (C$) $2.61 th Grow ze d uali Dividend Dividend n An Yield Yield % 11 3.6%22 3.6% $0.38 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

12. Slide 12: Key Takeaways

    Key Takeaways Building Building the the Better Better Bank Bank North North America America Retail Retail Earnings Earnings Focus Focus Franchise Franchise Businesses Businesses Risk Risk Discipline Discipline 11

13. Slide 13: Contents

    Contents TD Bank Group  Overview  Key Businesses  Economic Update  Appendix 12

14. Slide 14: Key Businesses at a Glance

    Key Businesses At a Glance YTD 2012 Earnings Canadian Retail (66%) U.S. Retail (23%) Wholesale (11%) Mix Wealth and Insurance Segments Business Canadian P&C1 U.S. P&C1 Wholesale Wealth and Insurance TD Ameritrade2 Sub-Brands 3 2006-20114 2005-20115 2009-20116 Recognized leader in service and conveni

15. Slide 15: Canadian Personal and Commercial Banking: Overview

    Canadian Personal and Commercial Banking Overview Key Businesses  Personal Banking  Retail operations provide a full range of financial products and services. As at Q1 2012 In C$  Approximately 12 million personal and small business customers. Total Assets $289B  More than 1,100 branches across

16. Slide 16: Canadian Personal and Commercial Banking: Key Messages

    Canadian Personal and Commercial Banking Key Messages  Lead in customer service and convenience  Rated #1 by J.D. Power1 and Synovate2, year after year  More than 50% longer branch hours than peers3  Integrated product offerings  #1 or #2 market share in most retail products4  Client referrals

17. Slide 17: Canadian Personal and Commercial Banking: Performance

    Canadian Personal and Commercial Banking Performance Adjusted Earnings1 ($MM) CDN GAAP3 IFRS 3 & Segment Transfer 4 $3,611 5-year 5-year CAGR CAGR $3,095 $3,051 13% 13%22 $2,424 $2,472 $2,253 $1,966 $850 2006 2007 2008 2009 2 0 10 2 0 11 2 0 11 2 0 11 Q1 2 0 12 1. See slide #3 for definition of adju

18. Slide 18: Wealth and Insurance: Overview

    Wealth and Insurance Overview Key Businesses  Direct Investing As at Q1 2012 In C$  Canada  U.S. - 45.10% reported equity investment in TD Ameritrade1  Europe - U.K., Ireland and Luxembourg AUA2 $250B  Advice-Based Wealth Businesses AUM3 $196B  Canada  Financial Planning  Private Investment

19. Slide 19: Wealth and Insurance: Key Messages

    Wealth and Insurance Key Messages  Leading market positions  #1 online brokerage in Canada1  #1 execution-only brokerage in the U.K.2  #1 direct writer of home & auto insurance in Canada3  Integrated Wealth & Insurance organization  Substantial advisory sales forces in Wealth  Strong referral

20. Slide 20: Wealth and Insurance: Performance

    Wealth and Insurance Performance Earnings ($MM) CDN GAAP3 IFRS3 & Segment Transfer4 $1,3 14 TD Ameritrade2 $2 0 7 5-year 5-year CAGR CAGR 1 1 6% 6% $76 2 $76 9 $776 Insurance4 $54 1 $6 4 1 $59 7 $2 0 7 $59 0 $2 6 1 $2 8 9 $19 4 TD Ameritrade2 $14 7 $2 52 $3 4 9 $55 $56 9 Wealth $56 6 $50 1 $4 8 0 We

21. Slide 21: U.S. Personal and Commercial Banking: Overview

    U.S. Personal and Commercial Banking Overview Key Businesses As at Q1 2012 In C$  Personal Banking Total Assets $202B  Over 1,280 stores  More than 1,870 ATMs Total Deposits1 $167B  24/7 live customer support  More than 8 million customers Total Loans2 $82B Adjusted $1.3B  Commercial Banking E

22. Slide 22: U.S. Personal and Commercial Banking: Key Messages

    U.S. Personal and Commercial Banking Key Messages  Lead in customer service and convenience  Open longer hours than the competition including Sunday banking in most markets  Recognized as Best Bank on the East Coast by Money Magazine1 in 2011  24/7/365 live customer contact center support  Sign

23. Slide 23: U.S. Personal and Commercial Banking: Performance

    U.S. Personal and Commercial Banking Performance Adjusted Earnings1 ($MM) CDN GAAP3 IFRS3 $ 1,3 2 5 $ 1,2 7 0 5-year 5-year CAGR CAGR 2 2 $ 1,0 4 2 45% 45% $ 909 $ 806 $ 359 $ 352 C$ $ 255 US$ $224 $328 $794 $781 $1,008 $1,345 $1,289 $345 2006 2007 2008 2009 2 0 10 2 0 11 2 0 11 2 0 11 Q 1 2 0 12 Ac

24. Slide 24: Wholesale Banking: Overview

    Wholesale Banking Overview Key Businesses As at Q1 2012 In C$  Investment Banking  Advisory, underwriting, and corporate lending Risk Weighted $51B Assets  Equities Adjusted $774MM  Trading, facilitation, execution services, and research Earnings1 Employees2 3,500+  Rates and Foreign Exchange 

25. Slide 25: Wholesale Banking: Key Messages

    Wholesale Banking Key Messages  Focus on client-driven franchise businesses  Focused on flow businesses with a presence in key global financial centres  Evolved the business model by strategically repositioning the dealer to concentrate on core-client driven activities (eg: exited global structur

26. Slide 26: Wholesale Banking: Performance

    Wholesale Banking Performance Adjusted Earnings1 ($MM) CDN GAAP2 IFRS2 $1,137 $987 $824 $813 $815 $664 $194 $65 2006 2007 2008 2009 2010 2011 2011 2011 Q1 2012 1. See slide #3 for definition of adjusted results. Also see the Wholesale segment discussion in the Business Segment Analysis section in th

27. Slide 27: Contents

    Contents TD Bank Group  Overview  Key Businesses  Economic Update  Appendix 26

28. Slide 28: Why Canadian Economy Outperforms

    Why Canadian Economy Outperforms  One of the world’s most competitive economies1  Soundest banking system in the world1  Robust economic fundamentals relative to G7 economies  Strong Canadian housing market  Home values have held up well  More prudent regulatory environment  Unemployment rate

29. Slide 29: Solid Financial System in Canada

    Solid Financial System in Canada  Strong retail and commercial banks  Conservative lending standards  All major wholesale dealers owned by Canadian banks, with stable retail earnings base to absorb any wholesale write-offs  Responsive government and central bank  Proactive policies and programs

30. Slide 30: Canadian Mortgage Market is Different from the U.S.

    Canadian Mortgage Market is Different from the U.S. Canada U.S.  Conservative product offerings: fixed or variable  Outstanding mortgages include earlier exotic interest rate option products (interest only, options ARMs)  Borrowers often qualified using discounted  Default insured mortgages use

31. Slide 31: North American Economy: Outlook

    North American Economy Outlook  North America is currently facing a global economic growth slowdown  Economic growth in North America to continue at a more modest pace  U.S. growth to catch up to Canada over the next couple of years  Canadian economy still tightly linked to U.S. fortunes – stron

32. Slide 32: Global Economic Outlook

    Global Economic Outlook World Real GDP Growth1 6% Forecast 4%  Global economic growth to slow 2% down 0% -2% 1990 1993 1996 1999 2002 2005 2008 2011F  Economic growth in North America to continue at a more modest pace North American Real GDP Growth2 4% Forecast  U.S. growth to catch up to Canada

33. Slide 33: Canadian Economic Outlook

    Canadian Economic Outlook Canadian Export and U.S. Activity Index1 25% Forecast 15% 5%  Canadian economy still tightly linked to U.S. fortunes -5% U.S. Activity Index -15% Canadian Exports -25% 1970 1976 1982 1988 1994 2000 2006 2012  Stronger U.S. growth helps Canada’s prospects Change in Domesti

34. Slide 34: U.S. Economic Outlook

    U.S. Economic Outlook Residential Real Estate1 1.0% Forecast  Depressed housing market has 0.0% seriously hampered the U.S. recovery -1.0% Contribution to Real GDP -2.0% 2001 2003 2005 2007 2009 2011 2013  Signs point to residential real estate making a positive contribution to Federal Fiscal Stim

35. Slide 35: Interest Rate Outlook

    Interest Rate Outlook Interest Rates, Canada and U.S.1 7% US Federal  Weaker growth and risks to the Funds Rate global economy mean North 6% Forecast American central banks are set to leave monetary policy at 5% Bank of Canada exceptionally accommodative levels Target Rate 4% 3%  This should help

36. Slide 36: Contents

    Contents TD Bank Group  Overview  Key Businesses  Economic Update  Appendix 35

37. Slide 37: Gross Lending Portfolio

    Gross Lending Portfolio Includes B/As Balances1 (C$B unless otherwise noted) Q4/11 Q1/12 Canadian Personal & Commercial Portfolio $ 277.2 $ 286.8 Personal $ 240.6 $ 248.4 Residential Mortgages 142.5 144.1 Home Equity Lines of Credit (HELOC) 64.5 64.2 Indirect Auto 13.6 13.5 Unsecured Lines of Credit

38. Slide 38: Credit Quality

    Credit Quality Allowance for GILs / Gross NCOs / Avg (In %) Credit Losses / Loans + BAs Loans + BAs GILs 1 0.65 85.8 0.14 Cdn Peer Avg1 0.87 83.9 0.31 U.S. Peer Avg2 4.21 79.06 1.54 Well-positioned loan portfolio 1. Results are as of Q1/12 for TD and Canadian Peers which ended on January 31, 2012. C

39. Slide 39: Credit Ratings

    Credit Ratings Ratings¹ Moody's S&P Fitch DBRS Aaa AA- AA- AA Strong credit ratings 1. Ratings on long term debt (deposits) of The Toronto-Dominion Bank, as at January 31, 2012. Credit ratings are not recommendations to purchase, sell, or hold a financial obligation inasmuch as they do not comment o

40. Slide 40: Managing Environmental, Social, Governance Risks & Opportunities

    Managing Environmental, Social, Governance Risks & Opportunities 1  One of the top 100 most sustainable companies in the world  For the third year in a row  One of only 8 companies in Canada  Recognized by sustainability indices  Dow Jones Sustainability Index North America  Jantzi Social Inde

41. Slide 41: Investor Relations Contacts

    Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Grand Prix for Best Overall Investor Relations: Large Cap Best Investor Relations by Sector: Financial Services Website: Best Investment www.td.com/investor Community Meetings Best Investor Relations by a CEO: Large

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