71 TD’s economic contribution

As a major employer, purchaser, taxpayer and financial services provider, TD’s role in the economy is extensive. The most direct contribution comes through maintaining a strong business with solid earnings, which allows us to pay employees and suppliers, contribute taxes and revenues to government and provide dividends to our shareholders.

Direct Economic Value Generated in 2012 (in millions of dollars)

TD’s Total 2012 Revenue

Distributed Value Operating costs1 $23,122

Salaries and benefits Taxes2

Cash dividends Community giving 1

$4,074 $7,241 $1,092 $1,870 $65

Economic Value Retained

Supporting Small Business Owners

Since the economic health of our communities depends to a large degree on the viability of their small and medium-sized businesses, TD is committed to helping those enterprises succeed. Our services to them include financing, specialized services and advice, and education. Over half our Canadian branches have Small Business Advisors who can advise on innovative solutions, products and services to meet each customer’s unique needs.

• In 2012, TD Bank was the top Small Business Administration (SBA) lender (by dollar volume) in Vermont, New Hampshire, Maine and South Carolina.

• TD is also providing support to microlenders across America as a catalyst for economic development in underserved communities.

• In 2012 TD Canada Trust provided small business customers with over $2 billion in new and increased credit authorizations.

$8,780 Reinvesting in Our U.S. Communities

In 2012, TD Bank provided in excess of US$450 million through community development investment programs in underserved areas:

Operating costs include occupancy, equipment, marketing, professional services, communications and some taxes (payroll taxes, transaction and sales taxes, capital and insurance premium taxes and property and business taxes). Refer to the 2012 Consolidated Financial Statements for more information.

2 Tax amount reflects income taxes. Refer to page 72 for more information on taxes borne by TD.

The global numbers above help tell the story of TD Bank Group’s direct value, but we wanted to explore TD’s indirect contributions to the economy. As our methodology is based on modelling from Statistics Canada, the analysis below refers only to Canada.

• The Low Income Housing Tax Credit program supports the development of multi-family housing for low-income individuals and families in need of affordable rental housing options.

• The New Markets Tax Credit program supports the revitalization of communities in low-income and distressed communities through improving access to capital for job creation and economic opportunities.

• The Small Business Investment Company program supports the growth of new and existing small businesses by providing access to equity capital, long-term loans and management assistance.

Strengthen Our Communities

Analysis From TD Economics

TD helps support the Canadian economy and job market through direct and indirect channels. The direct channels reflect TD’s actual hiring and spending. TD pumped $5.1 billion into the economy via its purchases of goods and services. If part- time positions are combined into their full-time

equivalent, TD employed a total of 53,000 Canadians and paid $5.4 billion in salaries and benefits. TD also provided shareholders with $1.8 billion in cash dividends.

TD also positively contributes to the Canadian economy through indirect channels. First, part of the salaries and dividends gets spent within Canada, generating demand for Canadian businesses.

TD’s spending also generated knock-on effects, which would have led to increased economic activity and hiring among other industries.

Over all, it is estimated that in 2012 TD helped support a total of 116,000 full-time equivalent jobs and generated $11.4 billion in economic activity within Canada, both directly and indirectly.

Sources: TD Bank Group 2012 Annual Report and Statistics Canada.

TD 2012 Corporate Responsibility Report