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BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 1
A M T D BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE 2017 STEVE BOYLE EXECUTIVE VICE PRESIDENT & CFO
London, England May 16-17, 2017
TD Ameritrade Holding Corporation (Nasdaq: AMTD). Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC, and TD Ameritrade Clearing, Inc., member FINRA/SIPC, subsidiaries of TD Ameritrade Holding Corp. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2017 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 2
Safe Harbor 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, stock price or any projections or expectations regarding the proposed business combination transaction between us and Scottrade Financial Services, Inc., 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, the ability to obtain regulatory approvals and meet other closing conditions to the proposed transaction, including the completion of the merger between Scottrade Bank and
TD Bank, N.A., on the expected terms and schedule; delay in closing the transaction; difficulties and delays in integrating the TD Ameritrade and Scottrade businesses or fully realizing cost savings and other benefits; business disruption following the proposed transaction; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; customer disintermediation; the introduction, withdrawal, success and timing of business initiatives; competitive conditions; TD Ameritrade’s and Scottrade’s businesses experiencing disruptions due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, other business partners or governmental entities; the inability to realize synergies or to implement integration plans and other consequences associated with mergers, acquisitions and uncertainties and other risk factors described in our latest Annual Report on Form 10-K, filed with the SEC on Nov. 18, 2016 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.
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 3
Use of Non-GAAP Financial Measures The Company utilized the non-GAAP calculation of net income excluding amortization of intangible assets as an additional measure to aid in understanding and analyzing the Company's financial results. Specifically, the Company believes that this non-GAAP measure provides useful information by excluding an item that may not be indicative of the Company's core operating results and business outlook. The Company believes that this non-GAAP measure will allow for a better evaluation of the operating performance of the business and facilitate a meaningful comparison of the Company's results in the current period to those in prior periods and future periods. Reference to this non-GAAP measure should not be considered as a substitute for results that are presented in a manner consistent with GAAP. This non-GAAP measure is provided to enhance investors' overall understanding of the Company's financial performance.
*Certain totals may not foot due to rounding. **Changes based on rounding numbers to the nearest $ millions. ***See Appendix for footnotes descriptions.
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 4
Overview
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 5
SENIOR MANAGEMENT Tim Hockey – President and CEO 32+ years in retail banking and wealth management
Joined TD Ameritrade in January 2016 from TD Bank Group, where he
most recently served as Group Head, Canadian Banking and Wealth
management, and as President and CEO of TD Canada Trust
Tom Bradley President, Retail Distribution Nearly 30 years of experience in the
industry Former President, TD Ameritrade
Institutional
Tom Nally President, TD Ameritrade Institutional More than 20 years of experience
with Advisors Currently responsible for TD
Ameritrade Institutional Sales
Karen Ganzlin EVP, Chief Human Resources Officer Over 10 years with the firm Former SVP of HR in wealth
management for TD Bank
Steve Boyle EVP, Chief Financial Officer Nearly 30 years in financial
services industry Former CFO of TD Bank
Prashant Bhatia Managing Director, Corp. Strategy & Business Development Over 20 years in financial
services industry
David Kimm EVP, Chief Risk Officer Nearly 30 years in financial
services – 15 of which included risk management
Ellen Koplow EVP, General Counsel & Corporate Secretary Over 15 years with the firm Former managing principal at
Columbia, MD office of Miles & Stockbridge, P.C.
Steve Quirk EVP, Trader Group 30-year trading career beginning
with Chicago Board of Options Exchange market maker
Vijay Sankaran Chief Information Officer Prior to joining the firm was IT
Chief of Technology at Ford Motor Company
Denise Karkos Chief Marketing Officer 7 years with the firm 4 years at TD Bank as the SVP
of market planning
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 6
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900PHASE ONE (Joe R.) 1975-2001 Pioneering an Industry Sep ‘01: Client Assets: $26B Market Cap: $1B
PHASE TWO (Joe M.) 2001-2008 Consolidating an Industry Sep ‘08: Client Assets: $278B Market Cap: $10B
PHASE THREE (Fred T.) 2009-2016 Premier Asset Gathering Sep ‘16: Client Assets: $774B
Market Cap: $19B
S&P Credit Rating: A
PHASE FOUR (Tim H.) 2017-> The Way Forward Mar ‘17: Client Assets: $847B Market Cap: $21B Client Assets pro-forma with Scottrade: ~$1T
Total Client Assets $B
EVOLUTION OF TD AMERITRADE
Entering new phase in FY17 – headed to $1 Trillion in AUM
Sep ‘97 Mar ‘17
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 7
OUR STRATEGY
Deliver a Superior Client Experience
Scale Speed Simplicity Innovation
Core Objective
Execution Drivers
Strategic Goals
Lead in Trading Grow Client Assets
Build out Advice Solutions
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 8
KEY METRICS
Building Earnings Power IDA(1) Balance ($B) and Rate Interest Rate Sensitive Assets ($B)(3)
$59
$68
$73 $76
$84
$94
1.37%
1.17%
1.11% 1.09% 1.09% 1.08%
0.80%
1.00%
1.20%
1.40%
$40
$50
$60
$70
$80
$90
$100
FY12 FY13 FY14 FY15 FY16 FY17 YTD
Avg. Bal. Rate
$63 $73 $75 $80 $90 $95
$15
$17 $19 $22
$25 $25
$5
$5 $6
$6
$4 $4
$83
$96 $100
$108
$119 $124
$0
$20
$40
$60
$80
$100
$120
$140
Sep '12 Sep '13 Sep '14 Sep '15 Sep '16 Mar '17
(4)
Immediate benefit with Fed Funds increases
Benefit over time with Yield Curve due to re-pricing of laddered investment portfolio
Float $29
IDA Interest Earning Assets Money Market Mutual Funds
Ending Balances
Fixed $61
Float $5
Fixed $58
Float $16
Fixed $57
Float $18
Fixed $57
Float $21
Fixed $59
CAGR: 9%
CAGR: 9%
(2)
Fixed $73
Float $22
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 9
2017 Goals
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 10
OUR 2017 GOALS
Improve the client experience Build out advice solutions Grow client assets Lead in trading
Increase speed to market Simplify and automate Deliver a superior associate experience Win together with TD Bank
Better begins here.
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 11
IMPROVE THE CLIENT EXPERIENCE
#1 in 3 major categories
In Barron's 2017 Online Broker Review, we were recognized as #1 for Long-Term Investing, Usability, and Novices. And
we ranked among the best for Trading Experience & Technology, Portfolio Analysis & Reporting, Option Traders,
Mobile, and Investor Education.
Win on client experience “Easy to use website, customer service was great to me and the online learning courses you have to offer.” Retail Client - January
2017
“When using the iRebal system, it has saved me a lot of work and time. I would give it a rating of twenty out of ten.” Advisor – December 2016
Named one of Fortune Magazine’s 2016 Most Admired Companies - February 2017
StockBrokers.com 2017 Online Broker Review
• Ranked #1 Overall
• Recognized as #1 (Best in Class) for Customer Service
• #1 for Trader Community
• Ranked #1 (Best in Class) for Trading Platforms and Tools
Best Trust Platform - 2016
• TD Ameritrade’s Institutional Advisors Private Wealth Trust Platform wins Wealth Management Industry Award
Insider’s Forum Technology Survey –2017
• TD Ameritrade’s Institutional iRebal ranks highest in T3 / Insider’s Technology Survey for advisor satisfaction
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 12
$196
$250
$309 $334
$374 $405
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
FY12 FY13 FY14 FY15 FY16 FY17Avg. Bal. ($B) $86 $113 $137 $156 $161 $178-$186(6)
BUILD OUT ADVICE SOLUTIONS
$430
Outlook Range ($M)(6) Investment Product Fees ($M)
$197(2)
Mar Q ’17 update
Revenue up 17% year over year, up 10% sequentially, on higher balances
Advised average balances (Essential+Selective+AdvisorDirect) up 20% year over year
Essential portfolios good early progress
Fiscal 2017
YTD average balances $175B(2)
Continued growth of guidance products
Introduction of Essential Portfolios
− Industry Award for #1 Goal Tracker and ranked 3rd overall in Stockholders.com first annual Robo-Advisor Review (February 2017)
Investment Product Fees(5) 11% of net revenue in Mar Q ‘17
CAGR: 18%
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 13
Client Assets ($B)
$41
$50
$53 $63
$60
$38
$472
$556
$653 $667
$774 $847
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
FY12 FY13 FY14 FY15 FY16 FY17 YTD11% 10% 10% 10% 9%
NNA Growth Rate
GROW CLIENT ASSETS
Mar Q ‘17 Update Mar Q ’17 $19.5B NNA(7); 10% growth rate(8)
~25%/75% Retail/Institutional split
Retail
− Strong inflows and new accounts − “Green Room” emphasizes advice capabilities; well-
received
Institutional
− Strong momentum in all channels − Technology driving customer experience and greater
efficiencies
Fiscal 2017 Targeting $55B-$85B NNA; 7%-11% growth rate(6)
Evolution of LTI continuum
Record quarter, double-digit growth YTD
Net New Client Assets ($B)
CAGR: 13%
10%
(2)
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 14
LEAD IN TRADING
Record quarter, despite low volatility Mar Q ’17 Update
DARTS(9) up 2% year over year, up 6% sequentially
Stronger equity volumes, derivatives(10) at 41% of DARTS
Mobile adoption continues:
− Record DARTS 111K
− Record 22% of DARTS
Fiscal 2017 Post-election re-engagement
April – DARTS 502K
360 374
427
462 463
502
36%
39% 41%
43% 44%
20%
25%
30%
35%
40%
45%
325
375
425
475
525
FY12 FY13 FY14 FY15 FY16 FY17 YTD(2)
Avg. Client Trades per Day (K)
% Derivatives of Total Trades per Day
CAGR: 6%
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 15
INCREASE SPEED TO MARKET; SIMPLIFY AND AUTOMATE
Initiatives update – Mar Q ‘17 New for clients
Retail – Essential portfolio launch, relationship model, financial planning
Institutional – Model market center, VEO One
Agile technology progress
Client experience Lower base commission rates
Net advocate scores trending up in both retail and institutional (record)
Best-in-Class ratings(11) for multiple offerings
Scottrade integration planning on track
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 16
ENGAGED ASSOCIATES ENHANCE CLIENT EXPERIENCE/GROWTH
AWARDED FEBRUARY 2017
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 17
WIN TOGETHER WITH TD BANK
TD Owns ~ 42%(12) of TD Ameritrade Stockholders’ agreement amended and extended to 2021
Insured deposit account(1) agreement
Next 5-year term commences July 2018
Money market mutual funds provided by TD Asset Management
Enhancing relationships with TD Bank customers
Access to U.S. markets for TD Waterhouse Canada
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 18
Scottrade Acquisition
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 19
• Immediately enhances our scale and accelerates our growth
• Extends our leadership position in trading (~600K in pro forma DARTs(9))
• Significantly grows our client base by adding over 2M clients with 3M+ funded accounts(13)
• Expected to generate double digit accretion post-conversion
• Expected to achieve double digit ROIC/IRR post-conversion
• Ability to monetize $36B+(13) in incremental client cash balances
• Significantly expands our geographic footprint through an established branch network
• Enhances our asset gathering capabilities
• Enhances our presence in markets where Scottrade is strong
• Operating leverage in existing model will enable us to generate significant synergies
• Cost savings related to technology, operations/back office, and advertising Approximately $450M anticipated in annual cost saves; realized in full by Year 2(14)
• Potential for meaningful additional opportunity, primarily through growing share of wallet (e.g., mobile, derivatives(10), fixed income, and investment advice) $300M+ long-term opportunity
• Robust pro forma cash flow profile; enhanced by meaningful tax benefits
• Modest combined leverage at closing (at or below pre-acquisition levels after synergies)
• Track record of successful acquisitions
• History of integrating acquisitions, realizing synergies, and driving shareholder returns
COMPELLING COMBINATION OF LEADING FIRMS
Enhanced Scale
Financially Attractive
Expanded Footprint and Client Reach
Significant Synergies
Strong Cash Flow and Operating Leverage
Proven Consolidator
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 20
Client Assets
Funded Accounts(16)
DARTS(9)
Revenue / Trade(17)
Client Cash
Margin Balances
Derivatives(10)
7.0M 3.1M
$774B $170B
463K 137K
$11.76 $10.10
44% 11%
$113.3B $35.7B
$11.8B $2.5B
Branches ~100 ~500
10.1M
$944B
600K
$11.38
36%
$149.0B
$14.3B
~450
ENHANCING OUR SCALE AND ACCELERATING OUR GROWTH
Meaningful lift across key operating metrics(13) will drive scale, efficiencies and growth(15)
Combined
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 21
COMBINATION WILL SIGNIFICANTLY GROW BRANCH PRESENCE
Anticipate that our physical footprint will expand to ~450 branches; accelerates TD Ameritrade’s asset gathering strategy
Combined Footprint
Scottrade
TD Ameritrade
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 22
OUR STRATEGY
Deliver a Superior Client Experience
Scale Speed Simplicity Innovation
Core Objective
Execution Drivers
Strategic Goals
Lead in Trading Grow Client Assets
Build out Advice Solutions
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 23
Appendix
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 24
$124B
5% YOY
38% YOY
$847B
$0.40
$904M RECORD NET REVENUES
$19.5B RECORD NET NEW
CLIENT ASSETS(7) 7% YOY
2% YOY
RECORD AVERAGE CLIENT TRADES PER DAY
517K
19% YOY RECORD CLIENT ASSETS
11% YOY INTEREST RATE
SENSITIVE ASSETS(19)
15% YOY
$185B INVESTMENT BALANCES(18)
RECORD FEE-BASED
Record growth
MAR Q Fiscal 2017
ANNUALIZED GROWTH RATE(8)
10%
EPS
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 25
COMMISSION RATE PRICING CHANGES
$6.95 per online equity trade and $6.95 + $0.75/contract per online option trade
Rationalizes pricing post-Scottrade deal close
Expected to reduce FY17 revenue by $80M-$90M ($135M-$155M annualized)
Client negotiations increased initially, now normalizing
Prices shifted down, but competitive dynamics remain intact
Growth continues evidenced by record NNA(7), record DARTS(9) and record new funded accounts(16)
Interest rate environment and benefits of scale present offsets
Unique opportunity to enhance client offering
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 26
FISCAL 2017 OUTLOOK RANGE
Base commission rate cuts expected to reduce commission rates by $1.10-$1.30 per trade, decreasing commission revenue
Quarterly trend: $300M-$320M
Growth in asset-based balances and higher interest rates expected to increase asset-based revenue
Quarterly trend: $560M-$580M
Sales incentive, trading-related, investments in the business and Scottrade-related expenses expected to increase operating expense
Quarterly trend: $530M-$540M
Re-affirming $1.50-$1.80 EPS Range
(6)
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 27
ORIGINAL FISCAL 2017 OUTLOOK RANGE(6)
Financial Macro Assumptions Key Metrics
High
$1.80 EPS 10% Market Growth NNA(7) $85B / 11%(8)
42% Pre-Tax Margin
Increasing Fed Funds Increasing Yield Curve
TPD 505K
Operating expense growth of 3% NIM(20) 1.38% / IDA(1) 1.00%
Low
$1.50 EPS 0% Market Growth NNA $55B / 7%
38% Pre-Tax Margin
No change in Fed Funds, declining Yield Curve TPD 475K
Operating expense growth of (1%)
NIM 1.27% / IDA 0.95%
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 28
SENSITIVITY
Estimated annual impact to EPS
3K average client trades per day = $0.01
$3.8B fee-based assets(21) = $0.01
$0.6B spread-based assets(22) = $0.01
+25bps interest rate move = +$0.06-$0.10(23)
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 29
$0.6 $0.7
$0.8
$0.9 $0.9
$0.5
$0.3
$0.5
$0.7 $0.7 $0.7
$0.2
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
FY12 FY13 FY14 FY15 FY16 FY17 YTD
Net Income excl. Amort. of Intangibles ($B) Returned/Deployed ($B)
GOOD STEWARDS OF SHAREHOLDER CAPITAL
Strong Cash Generation and Strong Financial Position
79% 64% 87%
S&P “A”, Moody’s “A3” (under review for upgrade)
Fiscal 2016 Paid $0.68 per share in cash
dividends ($362M) Repurchased 12.0M shares ($352M)
Fiscal 2017 Targeting 40%(6) of net income
excluding amortization of intangible assets − Recurring dividend ~ 40% − No share repurchases
Increased quarterly cash dividend by 6% to $0.18/share
80% 51% 42%
(24) (25)
(2)
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 30
AVERAGE TRADES PER DAY
Thirteen quarter average 462
492
401 403
457
477
434
479
438
509
462
444
487
517
350
375
400
425
450
475
500
525
Mar Q '14 Jun Q '14 Sep Q '14Dec Q '14 Mar Q '15 Jun Q '15 Sep Q '15Dec Q '15 Mar Q '16 Jun Q '16 Sep Q '16Dec Q '16 Mar Q '17
13 Qtr. Avg. TPD Avg. Trades Per Day (K)
462
FY17 Outlook Range(6):
Avg. Trades Per Day (K): 475-505
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 31
$75.8 $75.0 $76.8
$80.9
$83.6 $85.8 $90.2 $91.6 $91.8 $91.7
$93.7 $95.7 $95.1 $95.1
$99.3 $102.6
$106.0 $106.6 $110.5
$115.7 $117.7
17.6% 16.9% 16.8% 17.1%
16.7% 16.4% 16.7% 15.9%
15.2% 14.5% 14.3% 14.4%
13.9% 13.5% 14.4% 14.8%
15.4% 14.7% 14.6% 14.9%
14.3%
10%
15%
20%
25%
$60
$65
$70
$75
$80
$85
$90
$95
$100
$105
$110
$115
$120
Mar Q'12
Jun Q'12
Sep Q'12
Dec Q'12
Mar Q'13
Jun Q'13
Sep Q'13
Dec Q'13
Mar Q'14
Jun Q'14
Sep Q'14
Dec Q'14
Mar Q'15
Jun Q'15
Sep Q'15
Dec Q'15
Mar Q'16
Jun Q'16
Sep Q'16
Dec Q'16
Mar Q'17
CASH AS % OF CLIENT ASSETS
Range 13-18%
Avg. Client Cash as % of Avg. Client Assets Avg. Client Cash ($B)
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 32
1.70
1.95
1.39
1.15
2.16 2.22 2.08 2.13
1.27 1.26 1.33
1.52
1.30
1.57 1.73
1.94
2.12
0.90
1.10
1.30
1.50
1.70
1.90
2.10
2.30
2.50
Sep Q '15 Dec Q '15 Mar Q '16 Jun Q '16 Sep Q '16 Dec Q '16 Mar Q '17 Jun Q '17 Sep Q '17
Forwards GI Low GI Base
1.38
1.74
1.17 0.98
1.98 2.05
1.93
1.99
1.21 1.19 1.27
1.50
1.18
1.46 1.61
1.82
2.02
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2.40
Sep Q '15 Dec Q '15 Mar Q '16 Jun Q '16 Sep Q '16 Dec Q '16 Mar Q '17 Jun Q '17 Sep Q '17
Forwards GI Low GI Base
0.75
1.18
0.84 0.73
1.46 1.62 1.60
1.68
1.14
1.30 1.43
1.51
1.01
1.26 1.40
1.59
1.77
0.50
0.70
0.90
1.10
1.30
1.50
1.70
1.90
2.10
Sep Q '15 Dec Q '15 Mar Q '16 Jun Q '16 Sep Q '16 Dec Q '16 Mar Q '17 Jun Q '17 Sep Q '17
Forwards GI Low GI Base
0.13 0.35 0.37 0.41
0.66 0.78
0.97
1.07
0.41 0.41 0.41 0.44
0.40 0.60
0.74 0.86
1.11
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Sep Q '15 Dec Q '15 Mar Q '16 Jun Q '16 Sep Q '16 Dec Q '16 Mar Q '17 Jun Q '17 Sep Q '17
Forwards GI Low GI Base
Fed Funds
LIBOR/SWAP YIELD CURVE(26)
2 Year Swap
5 Year Swap 7 Year Swap
GI Rate assumptions at beginning of fiscal year - September ‘16 published rates. Forwards as of 4/17/2017
Nine quarter trend
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 33
Investor Relations Contact
Website: Investor Relations: http://www.amtd.com/investor-relations
Phone: Jeff Goeser: 402-597-8464
Email: [email protected]
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 34
APPENDIX…FOOTNOTES 1. Client cash is held in FDIC-insured deposit accounts at TD
Bank, N.A. and TD Bank USA, N.A. TD Ameritrade, TD Bank, N.A., and TD Bank USA, N.A. are affiliated through The Toronto-Dominion Bank.
2. Year-to-date as of March 31, 2017.
3. Interest rate sensitive assets consist of spread-based assets and money market mutual funds.
4. Ending balances as of Mar. 31, 2017 consisted of $11.9B in client margin balances, $8.7B in segregated cash, and $4.5B in other balances.
5. Market-based plus money market mutual fund revenue.
6. FY17 forecast per 10/24/16 outlook statement.
7. 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.
8. NNA growth rate is annualized net new assets as a % of client assets as of the beginning of the period.
9. Total revenue trades divided by the number of trading days in the period. This metric is also known as average client trades per day.
10. Derivatives include options, futures and foreign exchange trades.
11. Sources: 2017 Stockbrokers.com; 2017 Barron’s annual broker review; WealthManagement.com; Insider’s Forum.
12. As of March 31, 2017.
13. As of September 30, 2016.
14. $450M in annual cost saves is based on addressable operating expense base of $750M (excluding depreciation & amortization and corporate debt interest expense) for 12 month period ending September 30, 2016.
15. May be some overlap due to common clients
16. All open client accounts with a total liquidation value greater than zero, except clearing accounts.
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 35
APPENDIX…FOOTNOTES
17. Revenue per trade includes commissions and order routing revenue.
18. Market fee-based investment balances plus money market mutual funds. Ending balances as of Mar. 31, 2017.
19. Interest rate sensitive assets consist of spread-based assets and money market mutual funds. Ending balances as of Mar. 31, 2017.
20. NIM (net interest margin) is a measure of the net yield on our average spread-based assets.
21. Client assets invested in money market funds, other mutual funds and Company programs such as AdvisorDirect and TDA Investment Management, on which we earn fee revenues.
22. 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.
23. Impact on spread-based and money market mutual fund revenues and interest on debt in the next twelve months following an interest rate increase. Assumes fed funds increase results in a parallel shift to the LIBOR/SWAP yield curve. Sensitivity is valid for next +25bps of moves. Model updated as of Mar. 31, 2017.
24. See attached reconciliation of non-GAAP financial measures.
25. Cash used for M&A, debt repayments, share repurchases, and dividends divided by net income. Excludes shares repurchased for payroll taxes on equity award distributions.
26. Source: Bloomberg end of period rates.
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 36
Reconciliation of Non-GAAP Financial Measures
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 37
Six Months Ended
Mar. 31, 2017 2016 2015 2014 2013 2012
Net income - GAAP 430$ 842$ 813$ 787$ 675$ 586$ Adjustments:
Amortization of acquired intangible assets 38 86 90 90 91 92 Income tax effect of above adjustment (14) (33) (35) (35) (35) (35)
Net income excluding amortization of intangible assets - non-GAAP 454$ 895$ 868$ 842$ 731$ 643$
Note: The term "GAAP" in the following explanations refers to generally accepted accounting principles in the United States.
(1)
TD AMERITRADE HOLDING CORPORATIONRECONCILIATION OF NON-GAAP FINANCIAL MEASURE
Dollars in millions(Unaudited)
Net income excluding amortization of intangible assets is a non-GAAP financial measure as defined by SEC Regulation G. We define net income excluding amortization of intangible assetsas net income adjusted to remove the after-tax effect of amortization of acquired intangible assets. We consider net income excluding amortization of intangible assets an important measureof our financial performance. Amortization of acquired intangible assets is excluded because management does not believe it is indicative of underlying business performance. Net incomeexcluding amortization of intangible assets should be considered in addition to, rather than as a substitute for, GAAP net income.
Net Income Excluding Amortization of Intangible Assets (1)
September 30,Fiscal Year Ended
BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE MAY 2017 38
A M T D BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE 2017 STEVE BOYLE EXECUTIVE VICE PRESIDENT & CFO
London, England May 16-17, 2017
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