The Case for Diversity and Inclusion at TD Beyond the War for Talent 1

The Leadership Message 2 We are determined to be a place where employees and customers alike feel comfortable and supported in all their diversity. Ed Clark, President and CEO TD Bank Group Customer-focused – this means ALL of our customers – both current and future. Diversity is about inclusion and respect for everyone. It’s about actively encouraging diversity of thought but not of values. Bharat Masrani, President & CEO TD Bank, America’s Most Convenient Bank TD’s view of diversity is driven directly from the top of the house. The points that you just spoke to echo what we hear from our Presidents and CEOs. At TD, inclusion means being a place where: No one is overlooked on the basis of gender, ethnic origin, physical ability, or sexual orientation. People’s differences are respected and supported. Barriers are removed to create a level playing field and where all employees have the opportunity to achieve their full potential based on merit. Customers feel comfortable and see themselves reflected in us. Some examples you may want to highlight and discuss their role as managers in addressing these issues: LGBTA employees tell us that they still sometimes hear inappropriate, derogatory comments in the workplace. They may not be out in the workplace when they hear these comments, or they may have a gay son or daughter. This makes them uncomfortable being themselves at work. Customers can have the same reaction. Employees who have an invisible disability tell us they are often afraid to mention it because they are afraid that their managers or colleagues will think less of them. Even long-term employees, part of the TD family, say that when they return from a Disability leave they are treated differently and feel isolated. Other employees feel that even if they perform really well a disability will limit their career progression. Women also feel that they are sometimes stereotyped. If they have children or other responsibilities, their manager may assume that they are not as career focused or mobile as their male co-workers. Or if they do take some time off to focus on other responsibilities, when they are ready to get back on the career track, they are not taken seriously. Aboriginal employees tell us that they also sometimes keep their heritage to themselves because of negative stereotypes in the media and society and comments that are hurtful (e.g., saying that someone who is always late is on “Indian time”). We need our branches to reflect the communities we do business in; 36% of Canadians are a visible minority and 20% were not born in Canada, yet many of our visible minority employees do not feel that they have the same opportunities or support for career development. 2

Transformational Growth TD 2002 TD 2012 $18.9 billion Market Cap $76.0 billion Market Cap (December 31, 2012) 1,328 Points of Presence – Retail, Business Wealth 42,817 Employees ~2,6001 Points of Presence – Retail, Business, Wealth ~88,000 Employees Premium on Leadership and Best Run 1 As of Q4 2012; includes ~100 TDA outlets. 2 Headcount, Q4 2012. 3 3

A Top Brand

Our 3-pronged Approach Customers Employees Community BUSINESS CASE Our second differentiator is that when we talk about diversity it is a holistic approach. We look at our customers, our employees and our community involvement from a diversity perspective, and that is what drives our business case for diversity. A legendary customer experience – for all customers An extraordinary workplace – for all employees Demonstrating our authentic commitment by investing in the communities where we do (and want to do) business. The best employees, the best customer experience = the best talent, the best business and the better bank. ------------------------------------------- Questions to engage the group: Does this resonate with you? In your own experience, how have you seen these prongs in action? Do you think we could advance the diversity agenda if we just focused on one of the prongs? ----------------------------------------- BUSINESS CASE FOR DIVERSITY CUSTOMER First, it is about being the bank of choice for our customers. They want to see themselves reflected in their bank – this speaks to our ability to attract, recruit and retain great people from diverse candidate pools They want to be understood in their diversity – this speaks to our ability to ensure our front line employees “get it” and are able to deliver to all customers – regardless of background – a legendary, comfortable customer experience They want to see relevant products and services – this speaks to our ability to leverage our diverse employee base, diversity of thought, to get at creativity and innovation Example: The other more complex sensitivities include: -ensuring the images show a positive reflection of the community in a way which is at a higher standard than what is reflected in mainstream media. For example, when marketing was looking for a community ad last year, it was important for the ad to represent a family shot (male, female and child) with the wedding ring visible. The feeling is that mainstream images of the black community reflect largely single parents (mothers) and absentee dads so our image selected needed to counteract this. -similarly for the recruitment ad, there is a strong feeling that fairer skin toned or bi-racial images are the mainstream and therefore more acceptable, especially for women. The implication which is fairly ingrained in the culture is that fairer skin toned individuals are more successful, prettier, more intelligent, get more air-time etc. So the ask is that we source pictures of women with darker skin tones to really demonstrate the true range within the culture and also send a message that all can be successful at the bank. -How the man, woman are interacting in the shot is extremely crucial, again trying to counteract stereotypes. So any image which even overtly or subtlely suggests a sexual or boyfriend/girlfriend relationship vs a work colleague is not considered appropriate because the mainstream image of the community is over-sexualized. Other examples- pink cars vs safe cars Lowes EMPLOYEE It’s also about being the employer of choice. There’s a war for talent. If we want the brightest and most talented employees, we need to tap every available talent pool. Diversity will help us be more powerful, more flexible and more sustainable by giving us access to the most diverse and creative thinking possible. It also helps to ensure we have diversity of thought in our organization. Creating opportunities for everyone is not only about doing the right thing; it’s about doing the smart thing. By taking a business-case approach to diversity and inclusion we increase our competitiveness and ability to attract the best talent. But it’s not just about attracting employees and customers – it’s also about keeping them. The fact is that if people don’t feel included they won’t stay with us – and we all know there is a business cost when this happens. COMMUNITY TD is a well respected, long standing financial institution, which is rapidly gaining influence in North America, and in some international markets. By conveying our belief system openly, and demonstrating the value that we place on diversity, we can send a powerful and visible message of encouragement to other organizations, to governments, to customers and to communities at large. And that means supporting community organizations who work on behalf of various diverse groups – we partner with them to help them forward their agendas. And our employees are further engaged by participating as volunteers with them. It’s clear that diversity and inclusion at TD has to be a practical, ongoing, strategic business imperative. It’s not something that we can do off side of the desk.It has to be important at every level of every business. And, we have to focus is on engaging that make an impact and lead to sustainable cultural change. Employees Community 6

Members of Minority Groups People with Disabilities 7 Diversity – A Market Opportunity Members of Minority Groups 36% of the Canadian Population People with Disabilities 15.8% of the Canadian Population Women 51% of all University Degree Holders Aboriginal Peoples 1.17 million Canadians 50% living in urban centres LGBT 10 Million (3–7%) Here’s the landscape today. 36% of Canadians are members of a minority group. Over 20% of Canadian were not born in Canada. Women make or influence 80% of all purchasing decisions in North America. Research suggests the majority of LGBT community is wealthier and more educated than the average population. 28% of families have at least one member with a disability. There are over 1 million Aboriginal People in Canada. The Canadian Aboriginal population grew six times faster than the rest of the population between 2001-2006. This is what your market looks like now, what do you think your market will look like in five to 10 years? (Open for discussion) So, diversity isn’t just the right thing to do. It’s makes good business sense. In fact, it’s critical in achieving our mission of becoming a leading North American bank. Over 20% of Canadian residents were born in another country, making Canada the second most immigrant- reliant economy in the world. The Canadian Aboriginal population grew nearly 6x faster than the rest of the population between 2001 and 2006. Women make or influence 80% of all purchasing decisions in North America. Research suggests the majority of the LGBT community is wealthier and better educated than most Americans. ~28% of U.S. families have at least one member with a disability. 7

TD IN DIVERSE MARKETS

TD’s Areas of Focus 1 2 3 4 5 6 Women in Leadership Minority/Visible Minority Leadership People with Disabilities Aboriginal Peoples (Canadian) Lesbian, Gay, Bisexual, Transgender and Allies Serving Diverse Communities 2 3 4 This is a refresher – hopefully this information is not new to you. -------------------------------------------- We have specific committees working on these 6 areas (5 in the US): Women in leadership – Expand leadership opportunities for women – at both the executive level and in the leadership pipeline. Visible Minority leadership - Expand leadership opportunities for members of visible minority groups – at both the executive level and in the leadership pipeline. People with Disabilities – Build an agenda for people with disabilities, including both employees and customers. Aboriginal People (CANADA ONLY) - Build an agenda to be the employer and bank of choice for Aboriginal employees and customers. Lesbian, Gay, Bisexual, Transgender and Allies - Enhance and promote an inclusive environment for lesbian, gay, bi-sexual, transgender and allied employees and customers. Serving Diverse communities - Embed products and marketing targeted to our diverse customer communities as part of business as usual at TD. US example of Serving Diverse Communities is Hispanic Customer Campaign in Florida Interesting to note because it is another differentiator that we also include “allies” in all of these groups. Men working with WIL. Lots of non-PWD working on issues of accessibility. LGBT and Allies. Etc. --------------------------------------------------- Questions to engage the group: Is there anyone in the room who has been engaged in one of these areas of focus who would be willing to share their experience or observations? How do you think TD is doing in this area? Where do you think we have made progress? Where do you think we still have work to do? If there was one message you wanted your colleagues in this room to take back with them as allies, what would it be? 5 6 9

Diversity: Not Only the 0bvious Differences Age Religion Nationality Race Language Heritage Sexual Orientation Gender Physical Ability Thought Processes Value Systems Life Experience Invisible Ability ASK; What do you see here? We also recognize that diversity is about more than 5 or 6 areas of focus. Diversity is about all of the ways in which each of us is unique, many of which are not immediately obvious. Tip of the iceberg. Diversity is really about everyone, in all ways. - EXAMPLE - all the variables when it comes to the people on our teams. - Can’t assume certain skills, traits, experiences, nationality automatically result in the same behaviour - too many variables Need to ASK questions, not make assumptions Example – A new employee seemed a bit standoffish, refusing to join in the team birthday cakes or enjoy the homemade treats that the team “baker” would bring in from time to time. He went out with the team one Friday, but didn’t partake of any of the beer or nibblies on offer. He also seemed a bit rigid. He always took his breaks and lunch at exactly the same time each day, regardless of what was going on or who else was or wasn’t available to join him.. Coworkers thought he was a bit strange and stopped making th effort to include himj. He later disclosed that he had type 1 diabetes and needed to monitor both the nature and time of his food intake to keep it under control. “Oh – you don’t look how you sound.”  This I something our visible minority colleagues get a lot of the time from both colleagues and clients who’ve first “met” them on the phone. along with a surprised expression that they read as doubt in their ability.  “We have to re-establish our credibility when this happens” Or I get asked:  “Where are you from? Where are you really from?  Where are your parents from?  It is just not believable that I am a Canadian”.    We recently received a complaint from a customer because their CSR, in what they thought was an effort to be friendly went down that path of where are you from, where are you really from? Where are your parents from? And ended up offending the customer (who was a visible minority, but Canadian born). We also can’t make assumptions when developing new products. As you know we’re converting all ViSA cards to the the new microchip technology which uses a PIN, rather than signatures to authorize the purchase.  This is a problem for those with disabilities affecting memory, or with dexterity disabilities who can’t punch in the PIN.  Since these customers would likely not use debit (because of PIN) we were, in essence, taking away all avenues except cash.  Not a way to WOW anyone.  The product team has now built into their new process a way to flag these customers, and to offer them a way to use VISA signature. ASK if they can identify any examples from their experience. How would they handle these situations in the workplace. Developing cultural competence, and I mean “cutlural” in the broadest sense, results in an ability to understand, communicate with, and effectively interact with people across differences. As leaders we all need to Increase our own EQ and Cultural Competence so that we can help our teams to be more inclusive. Sexual Orientation Family Status Beliefs Talents Education Skills Pers- pectives 10

Our Branch Managers Responsibilities 11 Our Branch Managers Responsibilities Go after the market opportunity Build a diverse team Create an inclusive work environment I encourage you to reflect on what you’ve heard today and think about how to use those ideas in your branch. I’ll leave you with three things to consider: 1. Go after the market opportunity: Understand diverse customers’ needs and preferences. Staff to serve a diverse market. Leverage community events and partnerships for brand building and business development. 2. Build a diverse team: Start with a diverse slate of candidates. Consider the value of creating a diverse team Leverage community relationships and participate in diversity recruiting events to “cast a wider net.” 3. Create an inclusive work environment: Set the tone through your words and actions. Challenge stereotypes and biases in yourself and others. Find ways to learn and share information about employees’ diverse cultures and experiences.   In addition to these strategic pillars, you’ll find these takeaways printed in your Participant Workbook.  They’re simple but effective, and they’ll help you continue to bring diversity into your branch.  Thank you! (Open the floor to questions and discussion) 11