Axos Financial, Inc. · NYSE:AX
Axos Financial — Merger or Acquisition (April 2021)
11 slides from Axos Financial's merger presentation, Apr 20, 2021
Slide 1: Axos Acquires E*TRADE Advisor Services
Axos Acquires E*TRADE Advisor Services April 20, 2021 NYSE: AX
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). The words “believe,” “expect,” “anticipate,” “estimate,” “project,” or the negation thereof or similar expressions constitute forward-looki
Slide 3: Deal Summary
Deal Summary Axos Clearing will acquire certain assets and liabilities related to E*TRADE Advisor Services (EAS): 1) $55 million cash purchase price paid at closing from Axos Financial 2) Includes $23 billion of custodial assets & ~$1.2 billion low-cost deposits 3) Accelerates time-to-scale in RIA c
Slide 4: E*TRADE Advisor Services (EAS) At A Glance
E*TRADE Advisor Services (EAS) At A Glance Overview Liberty Provides A Comprehensive Turnkey Platform • Founded in 1972 as Trust Company of America (TCA) Unified Performance • Headquartered in Centennial, CO; ~180 FTEs Managed Reporting Accounts • Acquisition by E*TRADE was announced in October 2017
Slide 5: Competitive Positioning
Competitive Positioning High-touch model focused on serving independent RIAs with no conflicts of interest Advisors RIA Firms More Efficient Investment Management Greater Scalability Multiple strategies per account More efficient account management Highly flexible trade execution Grow AUM an
Slide 6: Comprehensive RIA Custody Platform
Comprehensive RIA Custody Platform Holistic Software Platform Connecting with External Capabilities Liberty Platform Best of Breed 3rd Party Point Solutions 42 APIs CRM Risk Profiling Planning Portfolio Managed Management Investment Reporting + Operational Growth & Trading Solutions Analysis Tools T
Slide 7: Integration: End-to-End Technology Stack
End-to-End Technology Stack Liberty Liberty Website Mobile & Tablet Apps Portfolio Management System / OMS Integration Vendor and (Envestnet, Orion, etc.) Layer API Public APIs Portfolio Files FIX Trading Middle & Back Office Layers ALF – Custody, Portfolio Management and Model Rebalancing Provides
Slide 8: Acquisition Makes Axos a Top 5 RIA Custodian in Large and Growing Market
Acquisition Makes Axos a Top 5 RIA Custodian in Large and Growing Market RIAs managed ~$5.7T of retail-focused assets at year Projected Asset Market Share end 2019 (%) RIAs account for ~25% of total assets; by year end 2024, RIAs are expected to control 30% of 35% industry assets Three custodians re
Slide 9: Long-Term Revenue and Expense Synergies
Long-Term Revenue and Expense Synergies Revenue Synergies* Cost Synergies* Axos Securities: Axos Securities: • Margin Loans • Self-Clearing • Securities Lending Axos Custody • Regulatory/Compliance • Fixed Income Trading • HR • Payment for Order Flow • Customer Service • White-label Robo Advisor • I
Slide 10: Compelling Benefits for Key Stakeholders
Compelling Benefits for Key Stakeholders Employees Entrepreneurial culture and strategic alignment Expands opportunities for personal and professional development Shared resources will drive productivity and growth Shareholders Clients Adds turnkey, scalable tech platform Continuity of technology, s
Slide 11: Contact Information
Contact Information Greg Garrabrants, President and CEO Andy Micheletti, EVP/CFO investors@axosfinancial.com www.axosfinancial.com Johnny Lai, VP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 jlai@axosfinancial.com 10