Oppenheimer Holdings, Inc. · NYSE:OPY
Oppenheimer — Investor Presentation (September 2015)
27 slides from Oppenheimer's investor presentation, Sep 2, 2015
Slide 1: Oppenheimer Holdings Inc. September 2015
OPPENHEIMER HOLDINGS INC. SEPTEMBER 2015 Presented by: Robert Lowenthal Senior Managing Director, Chairman of Management Committee Jeffrey Alfano Executive Vice President & Chief Financial Officer
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
Slide 3: About Us
ABOUT US 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 obje
Slide 4: Heritage
HERITAGE 4 For over 130 years, we have provided investors with the necessary expertise and insight to meet the challenge of achieving their financial goals. Buetti Cannon Laidlaw Adams & Peck Reich & Co. First of Michigan WH Newhold’s & Son BC Christopher NY & Foreign Sec Josephthal & Co. Prime Char
Slide 5: Where We Operate
Los Angeles San Diego San Francisco Pittsburgh Chicago Cincinnati St. Louis Kansas City Denver AtlantaDallas Seattle Minneapolis Philadelphia Baltimore New York Boston Miami Houston WHERE WE OPERATE 5 Oppenheimer serves clients from 91 offices located throughout the United States as well as select g
Slide 6: Our Commitment
OUR COMMITMENT 6 Our commitment to our clients' investment needs and our experienced and dedicated professionals empower us in our proud tradition to deliver effective and innovative solutions to our clients. Client Focus Trusted Reputation Tailored Advice Flexibility At Scale Open Architecture Heri
Slide 7: Our Industry
7 Capital Markets Boutiques Bulge Bracket Investment Banks A d v i s o r y B o u t i q u e s Foreign M oney C enter Banks Full Service / Mid-Market Investment Banks OUR INDUSTRY
Slide 8: What Differentiates Us
8 WHAT DIFFERENTIATES US Each of our business lines benefits from the dedicated, senior-level commitment of a boutique combined with the capabilities of a global, full-service investment bank. Full service capabilities Global distribution Diversified business, stable profile Experienced professional
Slide 9: Growth Strategy
GROWTH STRATEGY 9 Refining operations and increasing productivity within our core businesses Developing new product offerings Adding the right resources – recruiting and retaining top talent Focusing resources on secular shift from transaction to fee-based accounts Seeking accretive acquis
Slide 10: Let's Look at Our Results
$- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 Wealth Management Capital Markets Commercial Mortgage Banking Wealth Management $663.0 67% Capital Markets $290.2 30% Commercial Mortgage Banking $30.8 3% (2) LET’S LOOK AT OUR RESULTS 10 Business Segment Results LTM June 30, 2015 Shareholders' Equity at 6/30
Slide 11: Financial Results Continued
FINANCIAL RESULTS CONTINUED 11 Gross Revenue ($M) Net Income/(Loss) ($ thousands) $‐ $200 $400 $600 $800 $1,000 $1,200 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2Q‐15 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2Q‐15 Net Income $75,367 $(20,770) $20,824 $38,532 $10,316 $(3,613) $25,061 $8,826 $13,
Slide 12: Capital Structure as of June 30, 2015
CAPITAL STRUCTURE AS OF JUNE 30, 2015 12 Conservative Risk Profile Ratios Equity to Assets: Capitalization to Assets: Debt to Equity: Gross Leverage Ratio: 18% 24% 28% 5.4x ($ in thousands) June 30, 2015 Total Assets: $2,929,543 Stockholders’ Equity: Long-Term Debt: $538,634 $150,000 Total Capitaliz
Slide 13: Select Financial Measures
13 SELECT FINANCIAL MEASURES Book Value ROE Earnings per Share ($) Pretax Margin (%) 5.57 -1.51 1.55 2.77 0.74 -0.27 1.77 0.62 0.92 5.70 -1.51 1.59 2.89 0.76 -0.27 1.85 0.65 0.97 -2.00 -1.00 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 2007 2008 2009 2010 2011 2012 2013 2014 LTM 2Q-15EPS - diluted EPS -
Slide 14: Investing in Regulatory Compliance
INVESTING IN REGULATORY COMPLIANCE 14 Oppenheimer has spent a significant amount of time and resources to address legal, compliance & regulatory matters. ˗ Structural and leadership changes ˗ Increased staffing in broker- dealer and investment advisory compliance departments ˗ New AML officer and in
Slide 15: We Continue to Address the ARS Matter
$0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 Feb-08 2009 2010 2011 2012 2013 2014 Jun-15 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Feb-08 2009 2010 2011 2012 2013 2014 Jun-15 WE CONTINUE TO ADDRESS THE ARS MATTER 15 Auction Rate Securities (“ARS”) failed in Feb. 2008 with over $330B outstanding in market
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 June 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 201
Slide 17: Why Oppenheimer
WHY OPPENHEIMER 17 Oppenheimer has a strong history The firm has navigated through a difficult environment Our client assets are near all time highs Our business model is low risk and well diversified We are poised to benefit from a rising interest rate environment We are investing in ou
Slide 18: Appendix
APPENDIX ()PPENHEIMER,
Slide 19: Wealth Management Overview
WEALTH MANAGEMENT OVERVIEW 19 Wealth Management Services Wealth Management represents Private Client and Asset Management business segments Provide a full range of products and services to clients to meet their complex and evolving financial needs One-on-one personalized financial advice Pos
Slide 20: Wealth Management (Continued)
WEALTH MANAGEMENT (CONTINUED) 20 $66.7M of assets per financial advisor Increase in AUM comprised of asset appreciation and new assets Continued focus on shift in client assets to fee-based programs Recent contract with Vestmark will consolidate advisory programs and systems Identified ser
Slide 21: Wealth Management (Continued)
Traditional 61% Other 19% OIM 5% Alt Investments 15% WEALTH MANAGEMENT (CONTINUED) 21 Traditional Multi-Asset Strategies ˗ Professional money management ˗ Access to a unique selection of investment advisers subject to a rigorous due diligence process ˗ Portfolios encompassing multiple strategies ˗
Slide 22: Capital Markets
Institutional Equities $129.0 44% Institutional Fixed Income $64.2 22% Investment Banking $74.1 26% Public Finance $23.0 8% Total Revenue(1) ($M) CAPITAL MARKETS 22 Institutional Equities ˗ Sales & Trading ˗ Equity Research ˗ Corporate Access Institutional Fixed Income ˗ Taxable Fixed Income ˗ N
Slide 23: Institutional Equities
23 INSTITUTIONAL EQUITIES 100+ research professionals covering 570+ companies 100+ sales professionals throughout U.S., U.K., Israel, Asia covering over 3,000 investors Over 1,000 events annually providing investor access to growing public and private companies Broad capital markets capabili
Slide 24: Institutional Fixed Income
INSTITUTIONAL FIXED INCOME 24 100 Institutional Sales People and 60 Traders More than $115B raised since 2004 More than $100B bonds traded in 2014 ~1,500 Active Accounts Short Term Trading Money funds Commercial Paper Certificates of Deposit Government Trading and Finance U.S. Treasu
Slide 25: Investment Banking
INVESTMENT BANKING 25 Full-service investment banking capabilities focused on middle-market and emerging growth clients Multi-sector, multi-product model enlarges market opportunity and diversifies the revenue stream Corporate and financial sponsor coverage Experienced Managing Directors lea
Slide 26: Commercial Mortgage Banking
COMMERCIAL MORTGAGE BANKING 26 Operating Profit Margin Principal Loan Balance ($M)Number of Loans in Servicing(1) Commercial Mortgage Banking segment is made up of Oppenheimer Multifamily Housing & Healthcare Finance, Inc., a Pennsylvania corporation (“OMHHF”) The Firm owns an 83.68% controlling
Slide 27: Thank You for Your Time
THANK YOU FOR YOUR TIME ()PPENHEIMER,
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