Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — Merger or Acquisition (September 2005)
13 slides from Toronto-dominion Bank's merger presentation, Sep 15, 2005
Slide 1: Delivering on our Strategy: TD Ameritrade
Joe Moglia, Chief Executive Officer - Ameritrade Holding Corp. Ed Clark, President and CEO - TD Bank Financial Group Randy MacDonald, Chief Financial Officer - Ameritrade Holding Corp. Dan Marinangeli, Chief Financial Officer - TD Bank Financial Group June 22, 2005, Revised September 14, 2005 Delive
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that involve risks and uncertainties. For example, statements related to realization of the company's strategy, the service offerings of the combined company, credit and interest rate risk associated with the transaction, co
Slide 3: The Best Combination for Clients and Shareholders
Realizes Ameritrade's strategy Accelerates client segmentation strategy Serves full spectrum of individual investor needs across all products and channels Benefits of banking with minimal exposure to interest rate or credit risk Enhances low cost platform Continues industry consolidation Delivers su
Slide 4: Realization of Ameritrade's Strategy
Realization of Ameritrade's Strategy Strengthens core business, accelerates growth & expands earnings RIA Long-term Investors Active Traders AMTD 4.1 75.6 164 TDW USA 38.1 143.4 75 Entrenched strong player Leverage platform with larger client base Amerivest New client base, suite of products, branch
Slide 5: Strategic Impact
Strategic Impact Grows net income with minimal additional exposure to interest rate or credit risk Adds significant asset based revenues Grows margins even with large scale branch network Positions AMTD for P/E multiple expansion and additional acquisitions Source for 2006 P/E: Smith Barney and Sand
Slide 6: Pro Forma Ownership and Transaction Terms
Pro Forma Ownership: 68% Existing Ameritrade Shareholders/32% TD Bank Financial Group Board: 12 member board 5 TD Bank representatives (including Vice Chairman, Ed Clark) 3 Ricketts family representatives (including Chairman, Joe Ricketts) 3 independent representatives selected prior to close CEO, J
Slide 7: Combined Operating Metrics
Combined Operating Metrics As of or for the quarter ended March 2005 Ameritrade metrics adjusted for the sale of Ameritrade Canada $ in Billions (1) Client credit balances and money market funds (2) Qualified accounts are all open client accounts with a total liquidation value of $2,000 or more, exc
Slide 8: Combined Results with Full Synergy Realization
Combined Results with Full Synergy Realization 39% Accretion In Millions except per share and percentages (1) Ameritrade excluding Canadian operations (2) Synergies expected to be realized over 18 months (Yr1: 40%, Yr2: 90%, Yr3: 100%) (3) Calculated as LTM revenue on a per account basis; multiplied
Slide 9: Revenue Opportunities - $219B Client Assets
Revenue Opportunities - $219B Client Assets Rent capital and banking skill set of TD Bank Minimal additional exposure to interest rate or credit risk (1) Assumed $1B of securities Assets in Billions Balances as of March 2005 Match the duration of assets and liabilities (no hedge expense)
Slide 10: Expense Synergies
Expense Synergies Equivalent of 59% of TD Waterhouse U.S.A. Expenses Expected to be Eliminated Proven integration track record Best people, products & platform Integration plan: - client retention - synergy realization - operational excellence - commitment to associates $ in Millions (1) Ameritrade
Slide 11: Why Ameritrade?
Why Ameritrade? On strategy and financially attractive Financial benefits of consolidation Strategic combination: Focus on wealth management: high P/E, ability to make future acquisitions Full spectrum of investors: active trader to long-term investor Proven management team
Slide 12: The Combination of Ameritrade and TD Waterhouse U.S.A.
The Combination of Ameritrade and TD Waterhouse U.S.A.... Is the best combination for Clients and Shareholders Realizes Ameritrade's strategy Access to banking without the cost or risk Delivers superior financial returns Continues industry consolidation Has minimal execution risk Positions firm for
Slide 13: Additional Information and Where to Find it
Additional Information and Where to Find it In connection with the proposed transaction, Ameritrade has filed a preliminary proxy statement concerning the transaction with the Securities and Exchange Commission ("SEC"). Once completed, a definitive proxy statement will be mailed to the stockholders
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