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Safe Harbor Statement This presentation contains forward-looking statements regarding future events or the future performance of the Company. Various factors could cause our actual results to differ materially from those anticipated. Viewers of the presentation are advised to check the documents filed by the Company with the Securities & Exchange Commission, including Forms 10-K and 10-Q for descriptions of risks and uncertainties related to forward-looking statements.
Chairman & Founder Joe Ricketts CEO Joe Moglia Chief Marketing Officer Anne Nelson Chief Strategy Officer Phylis Esposito Chief Financial Officer Randy MacDonald Chief Admin. Officer Kurt Halvorson General Counsel Ellen Koplow Institutional Client Division Vince Passione Private Client Division Pete Ricketts Technology Group Raymond Dury Management Team
Our Three Priorities 1. Clients 2. Shareholders 3. Associates Why be an Ameritrade client? Why own Ameritrade stock? Why work at Ameritrade?
Growth • Secular • Organic • New Distribution Channels • Acquisitions
New Organizational Structure ClientFocused
Institutional Client Private Client TradeCast by Ameritrade Ameritrade Ameritrade Plus Ameritrade Clearing Ameritrade Corporate Services Ameritrade Pro Ameritrade Advisor Services Ameritrade Financial Services New Organizational Structure: Client Focused Technology Clearing (Bill Yates) Marketing Products & Services (Scott Mingus)
Ameritrade is growing faster than the industry. Account Growth Growth in Total Accounts over last 12 months 35% NDB 21% 10% 4% 2% Ameritrade Datek E*Trade Schwab Waterhouse Trailing 12 months ending December 2001 *Waterhouse data for trailing 12 months ended November 2001
Competitive Advantages Trailing 12 months Operating Expense per Trade (excluding advertising) 12 months ending December 2001 *Waterhouse data for 12 months ending October 2001 Source: Analyst Reports and Company Press Releases
Cash Flow Positive In Millions
Debt-to-Equity Ratio Debt-to-equity ratio calculated as notes payable plus convertible debt divided by shareholders’ equity.
(In millions, except per share data) 1Q 02 4Q 01 1Q 01 Net Income (Loss) before Taxes $15.2 $1.5 * $(37.2) Earnings (Loss) per Share $0.04 $0.00* ($0.13) First Quarter Highlights * From Operations ** Bank Debt was repaid during January 2002.
What the Street Said about Ameritrade “We remain impressed with [Ameritrade’s] ability to achieve profitability during recent challenging market conditions. We believe our initial investment thesis on AMTD still holds, i.e. Low-cost producer, excellent brand, solid technology, etc. and further believe AMTD has the chance to be a big winner in the retail discount brokerage space, long term.” – Bob Napoli, ABN AMRO, 01/22/02 “We believe Ameritrade’s prudent cost management and the deleveraging of its balance sheet have positioned it for strong cash flow generation if customer activity rates show even a modest improvement.” – Greg Smith, J.P. Morgan Securities, 01/23/02 • Major Concerns: • Advertising Spending • Diversification • Market Recovery
Marketing Strategy • ROI • Master Brand • Proprietary Modeling • Strategic Partnerships • Media Costs Down Spend Appropriate for Market Conditions
Strategic Focus Diversified Model Ameritrade Model • Balance Sheet Liability • Additional Fixed Costs • Complex TechnologyInfrastructure • Regulatory • Globalization • One Platform • Efficiencies • Low Fixed Costs • Not Competing with Partners • Nimble
Record Quarterly Earnings Financial Leverage
