Oppenheimer Holdings, Inc. · NYSE:OPY

Oppenheimer — Investor Presentation (March 2016)

17 slides from Oppenheimer's investor presentation, Mar 31, 2016

  1. Slide 1: Oppenheimer Holdings Inc. Investor Presentation March 2016

    OPPENHEIMER HOLDINGS INC. INVESTOR PRESENTATION MARCH 2016 Presented by: Robert Lowenthal Senior Managing Director, Chairman of Management Committee Jeffrey Alfano Executive Vice President & Chief Financial Officer

  2. Slide 2: Safe Harbor Statement

    SAFE HARBOR STATEMENT 2 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

  3. Slide 3: Overview

    OVERVIEW 3 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. Private client services and asset management solutions tailored to individuals’ unique financial obj

  4. Slide 4: Current Environment

     Economic growth – weakness in China’s economy  Decline in oil and other commodity prices  Interest rate environment  Politics (U.S. Presidential Election 2016) 4 CURRENT ENVIRONMENT Global Industry  Regulatory landscape  Fintech revolution  Demographics of wealth management  Lower transacti

  5. Slide 5: Brokerage Stocks Trading at Cyclical Lows

    5 BROKERAGE STOCKS TRADING AT CYCLICAL LOWS Ticker 3/28/16 Stock Price Tangible BV per Share(1) Price/TBVPS Ratio Goldman Sachs GS $153.84 $161.64 95.2% Morgan Stanley MS $24.72 $30.26 81.7% Raymond James Financial RJF $47.05 $29.86 157.6% Stifel Financial SF $28.81 $22.58 127.6% Oppenheimer Holding

  6. Slide 6: Oppenheimer Value Proposition

    6 OPPENHEIMER VALUE PROPOSITION  Oppenheimer is currently trading at a significant discount:  Market capitalization as a percentage of revenue:  Client Assets Under Administration of $78.7 billion  Client Assets Under Management of $24.1 billion  1,233 financial advisors – Value per financial a

  7. Slide 7: Our Cultural Values

    Cultural Values Business Principles Talent & Leadership Technology Investments 7 OUR CULTURAL VALUES “Our core values and our culture are the most important and enduring strength of this firm. As we stay true to our principles, always doing what is right and best for our clients, then in the best an

  8. Slide 8: Our Business Principles

    8 OUR BUSINESS PRINCIPLES Deeply committed to our clients and offer the same level of service to investors of all sizesClient Focus Recommendations for each client are tailored and based on a deep-seeded knowledge of individual goalsTailored Advice Our track record demonstrates a commitment to resul

  9. Slide 9: Investing in Talent & Leadership

     Changed leadership in Private Client Division  14 new branch managers in the past year  Recalibrate expectations of financial advisors  New National Head of Recruitment  New financial advisor recruitment deal  Associate Financial Advisor Program Cultural Values Business Principles Talent & Le

  10. Slide 10: Technology Investments

    Cultural Values Business Principles Talent & Leadership Technology Investments 10 TECHNOLOGY INVESTMENTS Made substantial investments in technology to keep up with regulatory and compliance needs as well as to better service our clients – New platform for all investment advisory programs – Launched

  11. Slide 11: Let's Look at Our Results

    0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Wealth Management Capital Markets Commercial Mortgage Banking LET’S LOOK AT OUR RESULTS 11 Business Segment Results FY 2015 Shareholders' Equity at 12/31/15 (‘000s) $525,082 Book-value at 12/31/15 $38.84 Tangible Book-value at 12/31/15 $26.13 Market Cap

  12. Slide 12: Financial Results Continued

    FINANCIAL RESULTS CONTINUED 12 Gross Revenue ($M) Net Income/(Loss) ($ thousands) $880 $900 $920 $940 $960 $980 $1,000 $1,020 $1,040 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Net Income $10,316 $(3,613) $25,061 $8,826 $1,962 $(10,000) $(5,000) $‐ $5,000 $10,000 $15,000 $20,000 $25,000 $30,00

  13. Slide 13: Capital Structure as of December 31, 2015

    CAPITAL STRUCTURE AS OF DECEMBER 31, 2015 13 Conservative Risk Profile Ratios Equity to Assets: Capitalization to Assets: Debt to Equity: Gross Leverage Ratio: 20% 25% 29% 5.1x ($ in thousands) December 31, 2015 Total Assets: $2,692,964 Stockholders’ Equity: Long-Term Debt: $525,082 $150,000 Total C

  14. Slide 14: Select Financial Measures

    2.0% -0.7% 4.8% 1.7% 0.4% -2.0% 0.0% 2.0% 4.0% 6.0% 2011 2012 2013 2014 2015 1.9% -0.1% 4.3% 2.6% 0.7% -2.0% 0.0% 2.0% 4.0% 6.0% 2011 2012 2013 2014 2015 0.74 -0.27 1.77 0.62 0.14 5.70 -1.51 1.59 2.89 0.76 -0.50 0.00 0.50 1.00 1.50 2.00 2011 2012 2013 2014 2015 EPS - diluted EPS - basic 14 SELECT FI

  15. Slide 15: We Continue to Address the ARS Matter

    5.3 4.5 35.9 68.2 72 85.1 91.4 86.8 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 Feb-08 2009 2010 2011 2012 2013 2014 2015 WE CONTINUE TO ADDRESS THE ARS MATTER 15 Company ($M)Client ($B) ARS Holdings $2.79 $1.30 $0.85 $0.58 $0.30 $0.24 $0.194 $0.167 $0.0 $0.5 $1.0 $1.5 $2.0 $2.

  16. Slide 16: Positioned Well for a Rising Interest Rate Environment

    ‐ 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2009 2010 2011 2012 2013 2014 2015 16 POSITIONED WELL FOR A RISING INTEREST RATE ENVIRONMENT  Low interest rates have had significant impact on interest and fee revenues  Gross interest revenues down approximately $74M annually since 2010 due

  17. Slide 17: Thank You for Your Time

    THANK YOU FOR YOUR TIME ()PPENHEIMER,

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