Oppenheimer Holdings, Inc. · NYSE:OPY
Oppenheimer — Shareholder Meeting (May 2018)
19 slides from Oppenheimer's shareholder meeting presentation, May 14, 2018
Slide 1: Annual Stockholders' Meeting
Oppenheimer Holdings Inc. Annual Stockholders’ Meeting New York, NY May 14, 2018
Slide 2: Welcome to Oppenheimer's 2018 Annual Stockholders' Meeting
WELCOME to Oppenheimer’s 2018 Annual Stockholders’ Meeting May 14, 2018 1
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation and other written or oral statements made from time to time by representatives of Oppenheimer Holdings Inc. (the “company”) may contain “forward‐looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
Slide 4: Agenda
Agenda Current Environment Business Overview Financial Results Business Segments 3
Slide 5: Current Environment
Current Environment Macro Economic growth in the U.S. continues to expand with hints of future inflation Lowest unemployment rate in over 20 years Early 2018 saw an increase in volatility in the equity markets Consumer sentiment continues to strengthen Short‐term interest rates up 150 bps
Slide 6: Business Overview
Business Overview A Preeminent Wealth Manager and Investment Bank Oppenheimer is a leading investment bank and full‐service investment firm that provides financial services and advice to high net worth investors, individuals, businesses and institutions. Oppenheimer Snapshot (as of 12/31/17) Wealth
Slide 7: Ownership
Ownership Significant Insider Ownership Committed to Firm’s Long Term Success Institutional (46.6%)(1) Class A Stock – Ownership(1) Top 10 institutional holders (~31.7%) of Class A non‐ voting common stock: Retail – Hotchkis & Wiley Capital Management LLC (~ 7.52%) 22.9% – Dimensional Fund Advisor
Slide 8: Global Footprint
Global Footprint Strong Presence in the U.S. and Internationally 92 offices in the U.S. 5 international offices 2,973 employees – 1,082 financial advisors – 185+ institutional sales professionals – 30+ senior research analysts US London Hong Tel Aviv Geneva St. Kong Helier Wealth Management
Slide 9: Summary Operating Results – Full Year
Summary Operating Results – Full Year ($000’s) For the 12‐Months Ended Highlights REVENUE 12‐31‐17 12‐31‐16 % Change Management fees continue to Commissions $ 336,620 $ 377,317 10.8% increase due to higher net Advisory fees 320,746 269,119 19.2% new assets and market Investment banking 78,215 81,0
Slide 10: Summary Operating Results – First Quarter
Summary Operating Results – First Quarter ($000’s) For the 3‐Months Ended Highlights REVENUE 3‐31‐18 3‐31‐17 % Change Management fees continue to Commissions $ 83,407 $ 86,717 3.8% increase due to higher net new Advisory fees 77,548 69,409 11.7% assets and market appreciation Investment banking 28
Slide 11: Select Financial Measures
Select Financial Measures Shareholders Equity ($mm) Earnings per Share ($) 540 $3.00 534 2.60 535 531 $2.50 530 528 $2.00 1.85 1.72 525 524 525 $1.50 520 $1.00 0.65 515 513 $0.50 0.14 510 $0.00 ‐0.09 505 ‐$0.50 2013 2014 2015 2016 2017 TTM 500 3‐31‐18 EPS ‐ basic 2013 2014 2015 2016 2017 3‐31‐18 Ret
Slide 12: Capital Structure
Capital Structure Conservative risk profile with strong balance sheet As of March 31, 2018 ($in thousands) Liquidity & Capital Total Assets: $2,533,976 Issued $200 million 5 year 6.75% Senior Secured Note in June 2017 Stockholders’ Equity: $530,509 Regulatory Net Capital of $147 million at 3‐31‐
Slide 13: Interest Rates
Interest Rates Continuing to see the benefit of a rising interest rate environment FDIC Insured Bank Deposit Program Margin Lending Client funds swept into deposit accounts at Credit extended to clients on a collateralized participating banks and eligible for FDIC deposit basis insurance Highe
Slide 14: Business Segment Results
Business Segment Results For the 12‐Months Ended For the 3‐Months Ended ($000's) 12‐31‐17 12‐31‐16 % Change 3‐31‐18 3‐31‐17 % Change Revenue Wealth Management $ 682,649 $ 597,044 14.3% $ 171,738 $ 156,055 10.0% Capital Markets $ 231,632 $ 254,933 9.1% $ 61,529 $ 55,903 10.1% Corporate ‐ Other $ 6,05
Slide 15: Leading Wealth Management Platform
Leading Wealth Management Platform Well recognized brand and one of the few independent, non‐bank broker‐dealers with full service capabilities Wealth Management Services Wealth Management Revenue ($mm) Retail services: 800 702 682 683 – Full‐Service Brokerage 700 619 597 – Financial Planning, Ret
Slide 16: Wealth Management Metrics
Wealth Management Metrics Increasing Shift to Fee Based Revenue Advisory Fees as a Percentage of Wealth Management Advisory Fees and Commissions $700 100% Millions 90% $600 80% $500 70% $400 60% 50% $300 40% $200 30% 20% $100 10% $0 0% 2013 2014 2015 2016 2017 TTM 3‐31‐18 Advisory Fees ‐ Asset Man a
Slide 17: Capital Markets
Capital Markets A leading capital markets business providing sophisticated investment banking, research and trading solutions Capital Markets Capabilities Overview Capital Markets Revenue ($mm) Institutional Equities 350 299 ˗ Sales & Trading 300 281 280 255 ˗ Equity Research 250 232 ˗ Corporate A
Slide 18: Oppenheimer Position
Oppenheimer Position Well recognized brand with strong history Business model low risk and well diversified with low leverage Investing in technology to remain competitive and attract millennials Building momentum in investment banking business Increasing shift from transaction‐based busin
Slide 19: Oppenheimer
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