Toronto-Dominion Bank · TSX:TD
Toronto-Dominion Bank — TD Bank Financial Group — Investor Presentation (April 2010)
60 slides from Toronto-Dominion Bank's investor presentation, Apr 13, 2010
Slide 1: Investor Session: Focus on Wealth Management
Investor Session Focus on April 13, 2010
Slide 2: Introduction
Introduction Introduction Rudy Rudy Sankovic Sankovic 2 Investor Session
Slide 3: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements From time to time, the Bank makes written and oral forward-looking statements, including in this presentation, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission (SEC), and in other communications. In addition, repres
Slide 4: Agenda
Agenda Strategic Strategic Overview Overview Bill Bill Hatanaka Hatanaka Online Online Brokerage Brokerage John John See See Advice Advice Channels Channels Sandy Sandy Cimoroni Cimoroni Asset Asset Management Management Brian Brian Murdock Murdock Emerging Emerging Opportunities Opportunities Angus
Slide 5: Strategic Overview
Strategic Strategic Overview Overview Bill Bill Hatanaka Hatanaka 5 Investor Session
Slide 6: Building the Better Bank Every Day
TD Bank Financial Group Building the Better Bank Every Day Strategic Strategic Overview Overview Helping Helping clients clients build, build, preserve preserve and and transition transition wealth wealth Drive Drive top top tier tier asset asset growth growth through through integrated integrat
Slide 7: Integrated Model and Partnership
Integrated Model and Partnership Online An Integrated Approach within Brokerage Advice Asset Channels Management Strong partnering with retail bank Referrals from Referrals to TD Canada Trust TD Canada Trust 32% 32% 58% 58% 1 CAGR CAGR CAGR1 CAGR 03 04 05 06 07 08 09 03 04 05 06 07 08 09 Proven Prov
Slide 8: Asset Growth: Our Key Metric
Asset Growth: Our Key Metric Assets ($B) Retail assets more than doubled CAGR = 12% sset $372 Retail A $76 Total $210 Retail $200 $276B $39 $97 $74 $96 03 05 07 09 Q1 10 1 2 1 Institutional AUM Retail AUA Retail AUM Top Toptier tier asset asset growth growthdrives drivesearnings earnings 1. AUM is A
Slide 9: Wealth Management Business Lines
Wealth Management Business Lines 03-09 2009 Revenue1 Q1 10 Revenue CAGR Assets Market Share2 Canada #1 Build on Online Online $742MM 8% $108B U.K. #1 Leadership Private Investment Counsel #1 Accelerate Accelerate Advice Advice $820MM 12% $113B Financial Planning #3 Growth Investment Advice #5 Growth
Slide 10: Diversified Sources of Revenue
Diversified Sources of Revenue 03-09 Primary 20031 % Revenue 2009 % Revenue CAGR Influencer Transaction $492MM 38% $616MM 28% 4% Volatility Transaction Net Interest Net Interest Interest $176MM 14% $270MM 12% 7% Income rates Income Asset Fee-based $620MM 48% $1.3B 60% 13% Fee-based levels $1.3B $2.2
Slide 11: Sustainable Investments for the Future
Sustainable Investments for the Future Earnings ($MM) Hired 700+ new client facing advisors since 2003 Earned Earned through through Reduced price points to significant significant investments investments enhance volume growth in $501 online brokerage Invested in technology to $324 $345 upgrad
Slide 12: The Client Experience Journey
The Client Experience Journey Client ClientService Service CSI Index CSILaunched Launched Index(CSI) (CSI) for forPrivate Private launched launchedfor for Banking Private Banking&& CSI CSIadded addedtotoEmployee Employee Private Private PrivateTrust Trust Incentive Investment Investment IncentivePro
Slide 13: Seize Multiple Growth Opportunities
Seize Multiple Growth Opportunities Options & Global Equities New Canadians Retirement Women Building Buildingnew newsources sourcesof ofearnings earnings 13 Investor Session
Slide 14: Driving Future Earnings
Driving Future Earnings Online Online Brokerage Brokerage in in Canada Canada Deepen Deepen functionality functionality Advice Capitalize Capitalize on on investment investment in in Advice Channels Channels client-facing client-facing advisors advisors Deepen Deepen channel channel pene
Slide 15: John See, Online Brokerage
John John See See Online Online Brokerage Brokerage 15 Investor Session
Slide 16: Online Brokerage in Canada
Online Brokerage in Canada At a Glance Canada’s $102 Canada’s leading leading self- self- Assets ($B) directed directed online online brokerage brokerage for for retail retail investors investors 10% 10% Custody Custody and and clearing clearing CAGR CAGR services services for for investment i
Slide 17: Leadership in Online Brokerage
Leadership in Online Brokerage The Rapid Growth of a Leader Trades per day 23% R: t Fi r s G 24x7 24x7 service service CA Online Online investing investing Flat-fee Flat-fee pricing pricing 03 09 Executed Executed strategic strategic Integrated Integrated brokerage brokerage and and bank
Slide 18: Embedded Earnings
Embedded Earnings Deposits deposits Margin Loans loans + + margin margin $12 219 bps 264 bps 208 bps $8 117 bps $3 $2 07 08 09 Q1 10 07 08 09 Q1 10 Deposits ($B) Margin Loans ($B) Margin on Deposits Margin on Loans Opportunity Opportunityto togrow grow net netinterest interestincome incomein
Slide 19: Key Industry Trends
Key Industry Trends Globalization Globalization of of Securities Securities Markets Markets Increasing Increasing Retail Retail Investor Investor Sophistication Sophistication Deepening Deepening Demand Demand for for Information Information Functionality Functionality and and Tools Tools Adoption A
Slide 20: Growth Opportunities
Growth Opportunities Continue Continue to to leverage leverage strong strong TD TD partnerships partnerships Target Target new new demographic demographic segments segments Deepen Deepen functionality functionality to to increase increase trading trading volumes volumes Focus Focuson onn
Slide 21: Integrated Model: Strong TD Partnership
Integrated Model: Strong TD Partnership Referrals from Referrals to TD Canada Trust TD Canada Trust 22% 22% CAGR CAGR 69% 69% CAGR CAGR 05 07 09 05 07 09 More Morereciprocal reciprocalreferral referralopportunities opportunitiesavailable available 21 Investor Session
Slide 22: Target New Demographic Segments
Target New Demographic Segments New New Canadians Canadians 1.0M 1.1M 33 of of 55 New New Canadians: Canadians: Asian Asian 71 06 Community Community Other Asian Community Source: Ipsos Reid 2009 Online Discount Brokerage Report & Statistics Canada 2006 Census Tactics 24x7 access to Mandarin and C
Slide 23: Deepen Functionality: U.S. Options
Deepen Functionality: U.S. Options Growing Demand Leading Platform 3.6B 1.2B 04 09 Source: Options Clearing Corporation. U.S. Options contract volume growth from 2004 to 2009 Future Futurerevenue revenueopportunity opportunity 23 Investor Session
Slide 24: Deepen Functionality: Global Markets
Deepen Functionality: Global Markets Equity Trade Volumes 7.1B Offer Canadians Americas 7.0B access to global Asia Pacific markets through multi-currency, multi-exchange 1.1B 0.4B platform 2000 2009 Source: Worldwide Federation of Exchanges – Equity Trades from 2000 to 2009 Future Futurerevenue reve
Slide 25: Key Takeaways
Key Takeaways Leader Leader in in online online brokerage brokerage Embedded Embedded earnings earnings growth growth Strong Strong integrated integrated model model that that drives drives asset asset growth growth Future Future revenue revenue opportunities opportunities 25 Investo
Slide 26: Sandy Cimoroni, Advice Channels
Sandy Sandy Cimoroni Cimoroni Advice Advice Channels Channels 26 Investor Session
Slide 27: Advice Channels
Advice Channels At a Glance $113 Investment and wealth advice Assets ($B) for every stage of life. Multi-Channel Discrete Segments Distribution Financial Planning Mass Affluent 15% 15% CAGR CAGR Private Investment Affluent, High Net Advice Worth $47 High Net Worth, Private Client Group Discret
Slide 28: Wealth Advice for Every Stage of Life
Wealth Advice for Every Stage of Life High Net Business Mass Affluent Affluent Worth Source Delivery $100-500K >$500K >$1M+ Financial Financial TD Canada Internal Planning Planning Trust Branch Private Private TD Internal Investment Investment Waterhouse External Advice Advice Branch Private Client
Slide 29: Key Industry Trends
Key Industry Trends Wealth Held by 50+ Demographic 50+ demographic shift to 72% preservation and transition 72% of of Total Total will create opportunities Wealth Wealth by by $2.9T 2014 2014 Consolidator Consolidator $1.2T gets gets 4x 4x more more revenue revenue 04 08 14F Source: Investor Economi
Slide 30: Growth Opportunities
Growth Opportunities Deepen Deepen client client relationships relationships through through comprehensive comprehensive investment investment process process Use Use referrals referrals to to capture capture and and consolidate consolidate client client assets assets Leverage Leverage i
Slide 31: Deepening Existing Client Relationships
Deepening Existing Client Relationships Investment and Wealth Planning Process Addresses Addresses complex complex client client needs needs Ability Ability to to meet meet Addresses Addresses complex complex client client needs needs all Ability all needs needs in- in- Ability to to meet meet
Slide 32: Deliver Comprehensive Client Solutions
Deliver Comprehensive Client Solutions Core Core Investment Investment Comprehensive Comprehensive Wealth Wealth Management Management Products Strategic Strategic Solutions Solutions Products Discrete Discrete Investment Investment Management Management Cash Cash and and near near cash cash
Slide 33: Providing Advice to Underserved Markets
Providing Advice to Underserved Markets Women Women 1 39% 67%1 rds 06 19 2/3 2/3rds controlled controlled Men Women by by women women in in 2019 2019 1. Control of investable assets > $US 625K Source: Corporate Executive Board, VIP Forum 2006 Tactics Educational media campaigns Increased focus o
Slide 34: Leveraging TD Canada Trust Referrals to Consolidate Assets
Leveraging TD Canada Trust Referrals to Consolidate Assets Additional Additional $1.11 $1.11 for for every every $2.11 $1 referred $1 referred $1.72 $1.11 Additional $0.72 Assets $1.00 $1.00 Referred Assets 06 09 Proven Provenability abilityto toleverage leveragereferrals referralsto toconsolidate c
Slide 35: Leverage our Investment in Client Facing Advisors
Leverage our Investment in Client Facing Advisors More Client Facing Advisors Embedded Growth Mature Mature advisor advisor delivers delivers 3x 3x 1,427 revenue revenue 1,209 925 Grew 46% of Grew 3x3x 54% of advisors 696 faster faster advisors < 4yrs than than 4yrs + industry industry 03 05 07 09 O
Slide 36: U.S. Strategy
U.S. Strategy Affluent and High Mass Affluent Net Worth Delivery < US$750K >US$750K TD TD Ameritrade Ameritrade Online Private Private Client Client Private Client Group Group Service Centre Early stages of execution Piloting referrals to TD Ameritrade from TD Bank stores Private Client Group:
Slide 37: Key Takeaways
Key Takeaways Deepen Deepen client client relationships relationships through through comprehensive comprehensive investment investment process process Use Use referrals referrals to to capture capture and and consolidate consolidate client client assets assets Leverage Leverage investme
Slide 38: Brian Murdock, Asset Management
Brian Brian Murdock Murdock Asset Asset Management Management 38 Investor Session
Slide 39: Asset Management
Asset Management At a Glance One of Canada’s largest Assets ($B) asset managers $96 $75 6% 6% total $54 Retail total $31 assets assets High net worth CAGR CAGR Institutional 03 04 05 06 07 08 09 Q1 10 Retail Institutional Market Market Positioning Positioning #1 Long-term mutual fund net sal
Slide 40: Key Industry Trends
Key Industry Trends Industry Industry Consolidation Consolidation Commoditization Commoditization and and Fee Fee Pressure Pressure Scale Scale is is Innovative Innovative and and Customized Customized Critical Critical Products Products and and Solutions Solutions Regulatory Regulatory Pressure Pre
Slide 41: Growth Opportunities
Growth Opportunities Deepen Deepen channel channel penetration penetration Broaden Broaden institutional institutional relationships relationships Enhance Enhance international international equity equity capability capability Multiple Multiplelevers leversto togrow growthe thebusiness b
Slide 42: Deeper Penetration of TD Canada Trust
Deeper Penetration of TD Canada Trust Products Products that that are are TD Comfort Portfolios easy easy to to understand understand Assets ($B) and $2B and sell sell Straightforward Straightforward way way to to invest invest Successful client-centric product Investment Investment experts
Slide 43: Continued Excellence in Non-TD Channel Distribution
Continued Excellence in Non-TD Channel Distribution Sales of Long-Term Mutual Funds +34% Independent -9% Fund Companies Feb-07 Feb-10 Source: Investment Funds Institute of Canada long-term fund Assets Under Management. Success story Successstory Potential Potential for for further further growth
Slide 44: Broaden Institutional Relationships
Broaden Institutional Relationships Economies of scale Core Deeper ‘stickier’ relationships Solutions Annuity type revenues Drive Driveoperating operatingleverage leverageby bygrowing growingrelationships relationships 44 Investor Session
Slide 45: Enhance International Equity Capability
Enhance International Equity Capability Scalable Scalable platform platform andand leading leading asset asset management management practice practice in in fixed fixed income income and and passive passive mandates mandates Leadership Leadership opportunity opportunity in in international internati
Slide 46: Key Takeaways
Key Takeaways Deepen Deepen channel channel penetration penetration Broaden Broaden institutional institutional relationships relationships Enhance Enhance international international equity equity capability capability Multiple Multiplelevers leversto togrow growthe thebusiness business
Slide 47: Angus Rigby, Emerging Opportunities
Angus Angus Rigby Rigby Emerging Emerging Opportunities Opportunities 47 Investor Session
Slide 48: TD Waterhouse International
TD Waterhouse International At a Glance Assets ($B) Self-directed Self-directed online online $6 brokerage brokerage for for retail retail and and 11% 11% CAGR CAGR high high net net worth worth investors investors Custody Custody and and clearing clearing services services for for corporate c
Slide 49: Diversified Approach
Diversified Approach TD TD Waterhouse Waterhouse TD TD Waterhouse Waterhouse Investor Investor Services Services Corporate Corporate Services Services Online Online retail-only retail-only broker broker business business for for White-label White-label trading trading and and clearing clearing
Slide 50: Proven Market Leadership
Proven Market Leadership TDWIS1 Web Penetration 90% Active Trader2 Volume 48% 39% 39% 65% 30% 3 TDWIS1 Industry 05 06 07 08 09 05 06 07 08 09 Annual Trading Volume4 Market Share5 27% 2.9MM 1.4MM 20% 13% 20% CAGR CAGR 05 06 07 08 09 05 06 07 08 09 Q1 10 Strong Strongfoundation foundationto todrive dr
Slide 51: Growth Opportunities
Growth Opportunities Drive Drive organic organic growth growth Leverage Leverage TD TD brand brand internationally internationally to to develop develop global global hub hub Expand Expandglobal globalonline onlinepresence presence 51 Investor Session
Slide 52: Drive Organic Growth
Drive Organic Growth Investor Investor Services Grow Grow U.K. U.K. retail retail market market share share and and expand expand into into Europe Europe Services Corporate Corporate Services Leverage Leverage TD TD brand brand to to attract attract new new U.K. U.K. institutional institutional clie
Slide 53: Drive Organic Growth
Drive Organic Growth Best Best in in class class platform platform U.S. U.S.equities equities&&options options Multi-currency/markets Multi-currency/markets Multilingual Multilingualweb webexperience experience Multi-channel Multi-channelleading leadingwith withonline/mobile online/mobil
Slide 54: Leverage TD Brand Internationally to Build Global Hub
Leverage TD Brand Internationally to Build Global Hub #1 #1 Market Market Share Share in in Domestic Domestic Markets Markets Canada International Leverage Brand in New Markets Online Population Growth 560M > 938M by 20131 Integrated Integratedapproach approachto tocapturing capturingglobal globalle
Slide 55: Key Takeaways
Key Takeaways Strong Strong foundation foundation Drive Drive organic organic growth growth Leverage Leverage TD TD brand brand internationally internationally to to develop develop global global hub hub Expand Expandglobal globalonline onlinepresence presence 55 Investor Session
Slide 56: Q&A
7D Bank Financial Group Q&A Investor Session
Slide 57: Closing Remarks
Closing Remarks Bill Hatanaka Investor Session
Slide 58: Building the Better Bank Every Day
TD Bank Financial Group Building the Better Bank Every Day Strategic Strategic Overview Overview Helping Helping clients clients build, build, preserve preserve and and transition transition wealth wealth Drive Drive top top tier tier asset asset growth growth through through integrated integrat
Slide 59: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Best Investor Relations by Website: Sector: Financial Services www.td.com/investor Best Retail Investor Communications Investor Session
Slide 60: Investor Session: Focus on Wealth Management
Investor Session Focus on April 13, 2010
TD Bank Financial Group — Investor Presentation (April 2010) on 6ix