Oppenheimer Holdings, Inc. · NYSE:OPY

Oppenheimer — Investor Presentation (March 2018)

18 slides from Oppenheimer's investor presentation, Mar 29, 2018

  1. Slide 1: Oppenheimer Holdings Inc. Investor Presentation

    Oppenheimer Holdings Inc. Investor Presentation

  2. Slide 2: Safe Harbor Statement

    1 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

  3. Slide 3: Agenda

    2 Agenda 1. Company Overview 2. Business Segments 3. Financial Overview

  4. Slide 4: 1. Company Overview

    1. Company Overview

  5. Slide 5: Business Overview

    4 Business Overview (1) Wealth Management represents the Private Client and Asset Management business segments. Oppenheimer Snapshot (as of 12/31/17) Business Mix – 2017 Revenue ($920.3mm) A Preeminent Wealth Manager and Investment Bank Listed NYSE Ticker: OPY Shareholders’ Equity ($mm): $523.9 Mark

  6. Slide 6: History

    5 History The Company has successfully built its business upon accretive acquisitions and aims to continue in that tradition Distinguished Heritage: Long History of Successful Acquisitions Fahnestock and Co. Founded Oppenheimer & Co. Founded Oppenheimer & Co. acquired by Mercantile House Holdings, P

  7. Slide 7: Ownership

    6 Ownership Institutional (46.6%)(1)  Top 10 institutional holders (~31.7%) of Class A non‐ voting common stock: – Hotchkis & Wiley Capital Management LLC (~ 7.52%) – Dimensional Fund Advisors LP (~ 4.49%) – BlackRock Fund Advisors (~ 4.08%) – Burgundy Asset Management Ltd. (~ 3.56%) – The Vanguard

  8. Slide 8: Strong Presence in the US and Internationally

    7 Europe Hong Kong  92 offices in the U.S.  5 international offices  2,992 employees – 1,107 financial advisors – 185+ institutional sales professionals – 30+ senior research analysts Global Footprint US London Hong Kong Tel Aviv Geneva St. Helier Wealth Management  Institutional Equities   

  9. Slide 9: 2. Business Segments

    2. Business Segments

  10. Slide 10: Leading Wealth Management Platform

    9 57.1 61.0 65.9 63.8 66.7 78.5 0 20 40 60 80 100 2012 2013 2014 2015 2016 2017 1,406 1,388 1,324 1,233 1,158 1,107 80.3 84.6 87.3 78.7 77.2 86.9 70 75 80 85 90 2012 2013 2014 2015 2016 2017 Leading Wealth Management Platform Wealth Management Services  Retail services: – Full‐Service Brokerage – F

  11. Slide 11: Wealth Management Metrics

    10 Wealth Management Metrics 4Q‐17 Distribution of AUM ($28.3bn) OAM Program Descriptions  Alternative Investments: offers accredited and/or qualified investors the opportunity to participate in range of non‐traditional investment strategies  Consulting: third‐party managed fee‐based programs  OI

  12. Slide 12: Capital Markets Overview

    11 Capital Markets Overview Summary  Capital Markets segment includes: – Institutional Equities • Sales & Trading • Equity Research • Corporate Access – Investment Banking • Mergers & Acquisitions • Equity Capital Markets • Debt Capital Markets • Restructuring & Special Situations – Global Fixed In

  13. Slide 13: 3. Financial Overview

    3. Financial Overview

  14. Slide 14: 2017 Summary Operating Results

    13 2017 Summary Operating Results * Percentage not meaningful. ($in thousands) For the 12‐Months Ended REVENUE 12/31/2017 12/31/2016 % Change Commissions $ 336,620 $ 377,317 ‐10.8% Advisory fees 320,746 269,119 19.2% Investment banking 78,215 81,011 ‐3.5% Interest 48,498 47,649 1.8% Principal transa

  15. Slide 15: Capital Structure

    14 Capital Structure Conservative Risk Profile  Straight‐forward balance sheet  Strong capital base  Regulatory Net Capital of $142 million  Regulatory Excess Net Capital of $121.7 million  Level 3 assets represent 4.6% of total assets (primarily ARS) As of December 31, 2017 ($in thousands) Tot

  16. Slide 16: Interest Rate Sensitivity

    15 Interest Rate Sensitivity Interest and Fee Revenues ($mm)  Firm’s interest rate sensitive products: – Cash sweep balances – Margin lending – Spread lending (Securities Lending and Repos) – Firm investments (ARS)  FDIC Insured Bank Deposit program had balance of $6.7 billion at 12/31/17  Averag

  17. Slide 17: Auction Rate Securities

    16 Auction Rate Securities Client ($bn) Company ($mm) *Since year‐end, the ARS principal balance has been reduced by approximately $25 million due to issuer redemptions and tender offers  ARS failed in February 2008 with over $330 billion outstanding in market  Oppenheimer clients held $2.8 billio

  18. Slide 18: Slide 18

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