Mumneni Marut Vemuri Weng

Group 1

In 2000
0 Merges with U.S. Trust.

Introduces PocketBroker, wireless investing service.

0 Schwab Mutual Fund OneSource tops $100 billion in assets.

Acquires CyBerCorp, Inc. and Chicago Investment Analytics Diversifies websites and hotlines
Charles Schwab

0 Schwab introduces pre-market trading for most Nasdaq and listed securities.

49% of revenue came form trading activity and 27% came form asset-based fees
0 Market downturn began

1996 : 40,800 trades > 2000 : 242,00 trades > 2002 : 101,500 trades
2000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Now

In 2001
0 CyBerCorp, Inc. changes its name to Cyber Trader Inc. and enhances its

service with improved software, educational tools and tiered pricing.

0 U.S. Trust fined $10 million in a law case

(Fail to Comply the rule to disclose financial reports)

0 37% of revenue came form trading activity and 38% came form asset-

based fees

2000

2002

2004 2003 2005

2006 2007

2008 2009

2010 2011

Now

2001

In 2002
0 Schwab launches an alternative for investment research Schwab Equity Ratings , Schwab Private Client and Schwab Advisor Network Introduces Schwab Core Equity Fund and Schwab Hedged Equity Fund 0 Schwab Advisor WebCenter launches an advisor-branded website development and

hosting service 0 At year-end, total client assets reach $657 billion (excludes U.S. Trust)
0 Started to squeeze its less wealthy clients by raising fees and transaction charges on

smaller-sized accounts. (caused customers to defect to discount brokerages)

0 31% of revenue came form trading activity and 44% came form asset-based fees
2000 2001

2002
2003

2004 2005

2006 2007

2008 2009

2010 2011

Now

In 2003
0 In May 2003, Charles Schwab stepped down and gave sole control to David Pottruck as the

CEO.
0 Charles Schwab Bank is launched introducing price and service guarantee

on home mortgage loans.

0 $345 million acquisition of SoundView Technology.
0 Schwab and the Chicago Mercantile Exchange(CME) team up to provide

clients with electronic equities futures.

0 At the end of 2003, total client assets reach $830 Billion.
2000 2001 2002 2004 2006 2005 2007 2008 2009 2010

David S Puttrock

Now 2011

2003

In 2004
0 David S.Pottruck announces his resignation and Chuck Schwab is reinstated as the CEO of the

company.
0 Schwab and AXA Rosenberg introduce a new group of mutual funds, Laudus Rosenberg Funds. 0 The company did an about-face to compete with stronger competition by cutting trading fees on

average.
0 Schwab introduces the Charles Schwab Bank Visa credit card. 0 At the end of 2004, total client assets reach $942 billion
2000 2001 2002 2003

2004
2005

2006 2007

2008 2009

2010 2011

Now

In 2005
0 The company gives all clients access to Schwab Equity Ratings, inspiring the launch of

Schwab Premier Equity Fund and Schwab Portfolios.

0 There were 5,100 advisors doing business with Schwab. 0 Launches a new ad campaign: Talk to Chuck. 0 At the end of 2005, total client assets reach $1 Trillion

2000 2001

2002 2003

2004

2006

2008 2007 2009

2010 2011

Now

2005

Unique Advantages
0 Schwab Institutional services

- Asset custody - Back office operation

0 The business had grown from around $50 billion is assets under custody in 1995 to $439 billion

by 2006
0 Schwab Institutional represented 50% of Charles Schwab and Companys growth by late 2006.

0 In Oct.2006,reduce the numbers of RIAs by more than 50%

- To establish deeper relationships with the remaining independent financial advisors in the network.

2000 2001

2002 2003

2004 2005

2006
2007

2008 2009

2010 2011

Now

Technology Enhancement
0 Technology was clearly a key tool for both Schwab and its competitors , like Fidelity.

- Played a central role in the strategic shift that the firm made over the past few years.
0 The technology organization flattened from seven levels of management to four, reducing

by 50% in 2006. - Focus on productivity , efficiency

2000 2001

2002 2003

2004 2005

2006

2008

2010 2009 2011

Now

2007

In 2009
0 Introduces Real Life Retirement services

0 Charles Schwab Bank launches the Schwab Bank High Yield Investor Savings

account.
0 Charles Schwab Investment management changes its target-date mutual funds to

enhance the portfolios and reduce expenses.

0 Adds a large-cap growth fund to its Laudus funds lineup.

0 Offers first exchange traded funds(ETFs) that trade commission free at Schwab.com

2000 2001

2002 2003

2004 2005

2006 2007

2008

2010

Now 2011

2009

In 2010
0 Announces reductions in online equity trade commissions.

0 The Corporation lists are shared on the New York Stock Exchange.
0 Charles Schwab and J.P.Morgan join forces in fixed income. 0 Acquisition of Windward Investment management Inc. 0 Reduces fees on six ETFs and introduces three low-cost bond ETF

2000 2001

2002 2003

2004 2005

2006 2007

2008 2009

2010
2011

Now

In 2011
0 The Company launched a new platform for active traders, StreetSmart Edge 0 Announced the mobile deposit capabilities for smartphone users, enabling easy

usage.
0 Launches a new program called Clients Speak which features online ratings and

reviews by Clients on the accounts or their experience with the company

0 Acquisition of optionsXpress Holdings Inc and Compliance11

2000 2001

2002 2003

2004 2005

2006 2007

2008 2009

2010

Now

2011

Today
0 As of April 2012, the company's market

capital is $.19.48B
0 Ranks #559 in the Forbes Global 2000 list

Competitors