This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Become a premier asset gatherer Maintain and extend leadership position
APPROACH
Organic Acquisition
13BUSINESS MODEL
1. Trading
2. Investing
3. Advice
CLIENT NEEDSCLIENT-CENTRIC MULTI-CHANNEL
DELIVERYBROAD PRODUCT RANGE
OPEN ARCHITECTURE
Web
Phone
Education
Branch
RIAs
• Tools andInformation
• Seminars and Coaching
• PlanningServices
• PackagedProducts
• CashManagement
KEY TO DRIVING ORGANIC GROWTH
14
• Conservative Balance Sheet
– TD Bank relationship
– No U.S. real estate credit risk
• Strong Cash Position
• Prudent Financial Leverage
• Investment-Grade Credit Rating
MANAGING THROUGH THE CRISISSTRONG FINANCIAL POSITION
POSITIONED TO TAKE ADVANTAGE OF OPPORTUNITIES
15
• Reduce Nonclient-Facing Expenses
• Increase Marketing Investments
• thinkorswim Acquisition
• Share Buyback
• Cash Management Strategy
• Refinance Debt
MANAGING THROUGH THE CRISISTAKING ADVANTAGE OF DISLOCATION
WELL POSITIONED FOR THE OTHER SIDE OF THE CYCLE
16
• #1 in Market Share(1)
• Increased Client Engagement
– Educational programs
– Risk management tools
– Options(4)
– Quality execution
• Strong Funded Account Growth
• Strong Activity Rates
• thinkorswim Acquisition
MAINTAINING, ENHANCING LEADERSHIP
253
301
372
FY07 FY08 FY09
5.7%*
23%
Pro Forma(3) 6.0% 7.2% 8.1%
Trades Per Day & Activity Rate*
TD AMERITRADE TPD (K)(2)
RECORD GROWTH — TRADES
19%
6.3%* 7.3%*
(1) Source: Based on last twelve months publicly available reports for E*Trade Financial, optionsXpress and Charles Schwab.(2) Effective in Oct 2007, Average Trades Per Day have been adjusted to exclude nonrevenue-generating mutual fund trades.(3) Pro forma combined with thinkorswim funded activity rate.(4) Options involve risks and are not suitable for all investors.
* Funded account activity rate. Average client trades per day during the period divided by the average number of total funded accounts, during the period.
8
17
ON PAR WITH PREMIER ASSET GATHERERS
• Significant Improvement in Client Service
• Sales and Service Culture
• Client-Centric Business Model
• “Share of Wallet” Strategies
• Investments in Marketing
RECORD GROWTH — ASSETS GATHERED
(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.
* NNA as a % of client assets as of the beginning of the period.
$26.6$22.8
$12.4
FY07 FY08 FY09
5%* 8%* 10%*
S&P 500 31%
AMTD 115%
NNA ($B)(1)
9
18FINANCIAL RESULTSFISCAL 2009
EPS(1) $1.10
Net Revenues $2.4B 46% Asset-Based
Pre-Tax Income $1.1B 44% of Net Revenues
EBITDA (2) $1.2B 51% of Net Revenues
Return on Equity 21%
Financial Metrics
(1) Earnings per diluted share.(2) See attached reconciliation of financial measures.
TOTAL SHAREHOLDER RETURN – 18%
19SHAREHOLDER RETURN (1)
AMTD Peer Group S&P 500
(1) Graph compares the cumulative total return, through the end of the Company’s most recent fiscal year, from a $100 investment on September 30, 2008, in the Company’s common stock, a broad-based stock index and the stocks composing an industry peer group (ETFC and SCHW) .
Depreciation and amortization (45,891) (1.9%)Amortization of acquired intangible assets (73,870) (3.1%)Interest on borrowings (40,070) (1.7%)Provision for income taxes (415,700) (17.3%)
Net income 643,705$ 26.7%
Note: The term "GAAP" in the following explanation refers to generally accepted accounting principles in the United States.
(1) EBITDA (earnings before interest, taxes, depreciation and amortization) is considered a non-GAAP financial measure as defined by SEC Regulation G. We consider EBITDA an important measure of our financial performance and of our ability to generate cash flows to service debt, fund capital expenditures and fund other corporate investing and financing activities. EBITDA is used as the denominator in the consolidated leverage ratio calculation for covenant purposes under our senior revolving credit facility. EBITDA eliminates the non-cash effect of tangible asset depreciation and amortization and intangible asset amortization. EBITDA should be considered in addition to, rather than as a substitute for, pre-tax income, net income and cash flows from operating activities.
EBITDA (1)
TD AMERITRADE HOLDING CORPORATIONRECONCILIATION OF FINANCIAL MEASURES