Neil D. McHugh, CTP VP, Commercial Card Sales Manager TD Bank, America ’ s Most Convenient Bank January 26, 2011

1. Neil D. McHugh, CTPVP, Commercial Card Sales ManagerTD Bank, America’s Most Convenient BankJanuary 26, 2011 The Sustained Expansion of Commercial Card Based Payments

2. Card Payment Solutions • Gift Cards • Reloadable Debit / Payroll Cards • Corporate Credit Cards • Charge Cards……

3. Card Payment Solutions • Charge Cards • Purchase Cards • Commercial Cards (“One Card”) • Purchasing / T&E / sometimes Fleet • Declining Balance • Ghost • Virtual – Single Use All are Complementary Payment Solutions…

4. Market Trends • Growth! • Sustained demand • Trickle down effect • Why? • Shared value for all • Technology • Competition • Cost and risk mgt. • Comfort with cards

5. Market Trends 1 RPMG Research Corporation – 2010 Purchasing Card Benchmark Survey 2 RPMG Research Corporation – 2009 Travel Card Benchmark Survey

6. Leveraging Commercial Cards • Better articulating the business case • Drivers • Improve working capital • Increase DPO • Cost reduction / efficiency • How? • Involve all stakeholders • Incorporate in vendor contracts • Employee education • Enforce strategic usage • Support from senior management

7. Leveraging Commercial Cards • Integration in an overall payments strategy • Reduce / eliminate cash • Convert check / ACH transactions • Distributed vs. centralized/vendor card programs • Target specific vendor payments • Hybrid applications Average Transaction amount of $315 RPMG Research Corporation – 2010 Purchasing Card Benchmark Survey

8. Traditional Spend Categories Expanding Spend Categories Leveraging Commercial Cards • MRO – Maintenance, Repair and Operations • Office Supplies • Computer Equipment • T&E • Professional Services • Advertising • IT • Insurance • Telecommunications • Utilities • Other?...

9. Macro Environment Fostering Demand CFO’s View of A/P: High Pressures for 2009 Aberdeen Group: February 2009

10. Macro Environment Fostering Demand • Ongoing Concerns • Nearly 70% of respondents said managing cash worries them the most • The most significant risk to cash flow will be non-performing A/R (21% of respondents) • Other financial challenges include interest rates (55%) and access to credit (52%) • Cautious Optimism • Over half (58%) expect sales to increase in 2011 • Almost 40% of respondents expect capital investments to increase • Only 7% plan on reducing expenses in 2011 TD Bank – Corporate Finance Executive Survey TD Bank: Survey of corporate finance executives of middle market companies - August 2010

11. Substantial Economic Benefits Shared value All participants benefit More equal distribution

12. Substantial Economic Benefits • Buyer (cardholder) perspective • Elimination of the 3-way match • Reduced processing costs • Expedited payment cycle times • Streamlined internal processes • Payment controls • Enhanced reporting and spend visibility • Negotiate mutually beneficial trade terms • Improve working capital • Increased DPO – payment float • Revenue share – rebates

13. Substantial Economic Benefits • Supplier (merchant) perspective • Convenience • Reduce DSO • Receive prompt payment • Improve incoming cash flow • Eliminate costly paper remittances • Conduct a cost/benefit analysis

14. And the survey says… • Commercial Card for Purchasing1 • Reduce costs by 75% or $71 per purchase • Reduce payment cycle times by 72% • Eliminate PO and other payment/remittance docs • Commercial Card for T&E • Reduce costs by nearly 50% or $10 per purchase2 • Improve discounts from travel vendors by 13%3 1 RPMG Research Corporation – 2010 Purchasing Card Benchmark Survey 2 RPMG Research Corporation – 2004 Travel Card Benchmark Survey 3 Visa and Deloitte & Touche -2002 T&E Card Study

15. Most Expensive Least Expensive Projected Savings And the consultant says… Manual process with check $59 per transaction Procurement Card $9 per transaction $50 per transaction The Role of Procurement Cards in the Source-to-Settle Process (Accenture, June 2007)

16. Recent Developments • Evolution towards automated payment integration • Single Use / Virtual Cards - “pull pay” • Straight-Through-Processing - “push pay” • EIPP – Electronic Invoice Presentment and Payment • Integrated outsourced payables (check, ACH, wire, card) • Regulatory Changes…

17. Recent Developments • Summary of changes to Federal IRS 1099 Requirements1 • 2010: • No change to existing reporting requirements • 2011: • Relief - No reporting required for payment card transactions • Check transactions subject to the current rules • 2012: • Relief - No reporting required for payment card transactions • Expanded reporting for all transactions for check payments • Revised withholding regulations for federal/state/large local governments • Additional Resources: • Internal or External tax advisors • www.irs.gov • www.napcp.org 1 The above is intended to provide a summary of the recent changes. It is not legal or tax advice, or a complete examination of the IRS regulations. TD Bank does not make any warranty or representation as to the completeness or accuracy of this information or assume any responsibility that may result from reliance on such information. Please consult with your independent tax professionals where advice is required.

18. Any Questions? Thank You! Neil D. McHugh, CTP VP, Commercial Card Sales Manager Cash Management TD Bank, America’s Most Convenient Bank 2070 Chain Bridge Road, Suite 135 Vienna, VA 22182 Phone: 703-663-4389 Email: neil.mchugh@yesbank.com Please visit www.tdbank.com for more information