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TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade Holding Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2014 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.
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Page 1: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade Holding Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2014 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.

Page 2: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

Joe Moglia, Chairman of the Board

Page 3: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade
Page 4: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade
Page 5: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade
Page 6: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade
Page 7: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade
Page 8: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade
Page 9: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

• With TD Ameritrade since 1999 • General Counsel since 2001 • Corporate Secretary since 2005 • Helped start Women’s Initiative at TD Ameritrade, now

Company’s Diversity & Inclusion Initiative • B.A. in Government and Politics, University of

Maryland • University of Baltimore Law School • University of Maryland Distinguished Alumni Award,

2011

Page 10: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

Ellen Koplow, General Counsel and Corporate Secretary

Page 11: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

Joe Moglia, Chairman of the Board

Page 12: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

Fred Tomczyk, President and CEO

Page 13: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

This document contains forward-looking statements within the meaning of the federal securities

laws. We intend these forward-looking statements to be covered by the safe harbor provisions of

the federal securities laws. In particular, any projections regarding our future revenues, expenses,

earnings, capital expenditures, effective tax rates, client trading activity, accounts or stock price, as

well as the assumptions on which such expectations are based, are forward-looking statements.

These statements reflect only our current expectations and are not guarantees of future

performance or results. These statements involve risks, uncertainties and assumptions that could

cause actual results or performance to differ materially from those contained in the forward-looking

statements. These risks, uncertainties and assumptions include, but are not limited to: general

economic and political conditions and other securities industry risks, fluctuations in interest rates,

stock market fluctuations and changes in client trading activity, credit risk with clients and

counterparties, increased competition, systems failures, delays and capacity constraints, network

security risks, liquidity risks, new laws and regulations affecting our business, regulatory and legal

matters and uncertainties and other risk factors described in our latest Annual Report on Form 10-

K, filed with the SEC on Nov. 22, 2013 and our latest Quarterly Report on Form 10-Q filed

thereafter. These forward-looking statements speak only as of the date on which the statements

were made. We undertake no obligation to update or revise publicly any forward-looking

statements, whether as a result of new information, future events or otherwise, except to the extent

required by the federal securities laws.

Page 14: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

Worst financial/economic crisis since the Great Depression: • Preeminent financial institutions going

out of business • Plummeting consumer and business

confidence • Frightened investors • Plunging stock market • Falling interest rates

Fed Funds Rate

4.75% At the beginning of Fiscal 2008

Page 15: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

Clients placed an average of

301K trades per day

$278 Billion in total client assets (09/30/08)

Gathered

$23 Billion in net new client assets2

Credit Rating

BB considered non-Investment Grade

Stock Price

$16.67 (09/30/08)

Derivatives1 make up

12% of total trading volumes

(1) Derivatives include options, futures and foreign exchange (Forex) trades per day. (2) Net new assets (NNA) consists of total client asset inflows, less total client asset outflows, excluding activity from business combinations.

Client asset inflows include interest and dividend payments and exclude changes in client assets due to market fluctuations. Net new assets are measured based on the market value of the assets as of the date of the inflows and outflows.

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Take advantage of the environment to take market share: • Maintain Leadership Position in Trading • Become a Premier Asset Gatherer • Develop a Third Revenue Stream • Revamp Client Cash Strategy • Launch Lean Initiative • Target “A” Credit Rating • Capital Deployment/Return Strategy

Page 17: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

Improved Associate

Experience

Improved Client Service

Became Premier Asset

Gatherer

Bought thinkorswim

Enhanced Technology and Security

Updated Marketing Strategy

Be the Better Investment

Firm for Today’s Investor

Page 18: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

Derivatives1 make up

39% of total trading volumes

$556 Billion in total client assets (09/30/13)

Gathered

$50 Billion in net new client assets2

Credit Rating

A considered “investment grade” category

Stock Price

$26.18 (09/30/13)

(1) Derivatives include options, futures and foreign exchange (Forex) trades per day. (2) Net new assets (NNA) consists of total client asset inflows, less total client asset outflows, excluding activity from business combinations.

Client asset inflows include interest and dividend payments and exclude changes in client assets due to market fluctuations. Net new assets are measured based on the market value of the assets as of the date of the inflows and outflows.

Clients placed an average of

374K trades per day

Page 19: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

$27 $34

$41 $41

$50

FY '09 FY '10 FY '11 FY '12 FY '13

Net New Client Assets ($B)

$192 Billion Gathered since Fiscal 2008

Organic Growth Rate2

10% 11% 12% 11% 10%

• Improved client service • Investor education • Revised sales and service

strategy • Broadened product offering:

Mutual Funds/ETFs Amerivest Guidance Solutions

• Independent RIA3 channel (1) Net new assets (NNA) consists of total client asset inflows, less total client

asset outflows, excluding activity from business combinations. Client asset inflows include interest and dividend payments and exclude changes in client assets due to market fluctuations. Net new assets are measured based on the market value of the assets as of the date of the inflows and outflows.

(2) NNA growth rate is annualized net new assets as a % of client assets as of the beginning of the period.

(3) Registered Investment Advisors (RIAs). *The years presented do not sum to $192M due to rounding.

1

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372 372

399

360 374

14%

28%

32%

36%

39%

10%

15%

20%

25%

30%

35%

40%

45%

200

250

300

350

400

450

FY '09 FY '10 FY '11 FY '12 FY '13

Average Client Trades Per Day (K)Derivatives %

• Acquired derivatives capabilities and expertise

• Three-tier platform strategy • Investment in education • Award-winning technology • Embraced mobile • Sharing expertise Social Media Investor Movement IndexTM

(IMXTM)

1) Total trades divided by the number of trading days in the period. 2) Derivatives include options, futures and foreign exchange (Forex) trades per day.

1

2

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• Guidance market following Great Recession

• Broadened and revamped product offering for long-term investors: Refined sales model Reinvented Amerivest

offering Mutual Funds/ETFs

• Invested in sales people

$76

$119

$158

$193

$249

FY '09 FY '10 FY '11 FY '12 FY '13

Market Fee-based Revenue ($M)

CAGR of 35%

(1) Market Fee-based Revenue: investment product fee revenue, less money market mutual fund revenue.

1

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$33

$53

$62

$74

$84

2.72%

2.06%

1.99%

1.69%

1.50%

1.00%

1.50%

2.00%

2.50%

3.00%

$0

$20

$40

$60

$80

$100

FY '09 FY '10 FY '11 FY '12 FY '13

Avg. Spread-based Balances ($B)NIM

$915

$1,104

$1,255 $1,278 $1,273

$750

$1,000

$1,250

$1,500

FY '09 FY '10 FY '11 FY '12 FY '13

Spread-based Revenue ($M)

(1) Client and brokerage-related asset balances, including client margin balances, segregated cash, insured deposit account balances, deposits paid on securities borrowing and other cash and interest-earning investment balances.

(2) NIM (net interest margin) is a measure of the net yield on our average spread-based assets.

2

1

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$1.3

$1.6 $1.7 $1.7 $1.7

$0.0

$0.5

$1.0

$1.5

$2.0

FY '09 FY '10 FY '11 FY '12 FY '13

Operating Expenses ($B)

Good expense discipline: • Tight management • Lean strategy • Accelerated Lean

Page 24: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

2014 Strategy: 1. Maintain strong organic growth: Continue to be the leader in trading Maintain asset gathering momentum Grow third revenue stream

2. Remain disciplined on expenses while investing in future Lean / Accelerated Lean Sourcing

3. Position company for rising interest rate environment 4. Remain committed to investing in technology and providing a robust, stable,

secure and resilient environment 5. Maintain a strong balance sheet 6. Deploy or return capital to further enhance shareholder value

Page 25: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

(1) Funded account activity rate (AR%). Average client trades per day during the period divided by the average number of total funded accounts during the period. (2) Net new assets (NNA) consist of total client asset inflows, less total client asset outflows, excluding activity from business combinations. Client asset inflows include interest and dividend payments and exclude

changes in client assets due to market fluctuations. Net new assets are measured based on the market value of the assets as of the date of the inflows and outflows. (3) NNA growth rate is annualized net new assets as a % of client assets as of the beginning of the period. (4) Market fee-based investment balances plus money market mutual funds. Ending balances as of Dec. 31, 2013. (5) Interest rate sensitive assets consist of spread-based assets and money market mutual funds. Ending balances as of Dec. 31, 2013.

• Average client trades per day of 414K; activity rate1 of 6.9% • Net new client assets2 of $14.5B; 10% annualized growth rate3

• Record client assets of $596B, up 24% year-over-year • Record fee-based investment balances4 of $136B, up 31% year-over-year • Record interest rate sensitive assets5 of $97B, up 8% year-over-year • Record net revenues of $752M, up 16% year-over-year • Diluted earnings per share of $0.35, up 30% year-over-year • Return of capital: Quarterly cash dividend of $0.12/share, or $66M Special dividend of $0.50/share, or $276M

• Stockholders Agreement with TD Bank amended and extended to 2021

Page 26: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

-10%

20%

50%

80%

110%

140%

S&P 500 +28%

AMTD +116%

NYSE-Arca Broker-Dealer Index +91%

Source: Bloomberg. Last 16 months for period from 9/28/2012 to 2/7/2014. Returns represent total daily shareholder returns including dividends (assumes dividends are reinvested).

S&P Financials +39%

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-20%

0%

20%

40%

60%

80%

S&P 500 +57%

AMTD +74%

NYSE-Arca Broker-Dealer Index +43%

S&P Financials +46%

Source: Bloomberg. Last 5 years for period from 9/30/2010 to 9/30/2013. Returns represent total daily shareholder returns including dividends (assumes dividends are reinvested).

Page 28: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

-80%

-40%

0%

40%

80%

S&P 500 +61%

AMTD +69%

NYSE-Arca Broker-Dealer Index +20% S&P Financials +9%

Source: Bloomberg. Last 5 years for period from 9/30/2008 to 9/30/2013. Returns represent total daily shareholder returns including dividends (assumes dividends are reinvested).

Page 29: TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a ...s1.q4cdn.com/...Stockholders-Mtg_CEO-Presentation.pdf · TD Ameritrade, Inc., member FINRA/SIPC/NFA, is a subsidiary of TD Ameritrade

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