Oppenheimer Holdings, Inc. · NYSE:OPY
Oppenheimer — Investor Presentation (November 2015)
27 slides from Oppenheimer's investor presentation, Nov 2, 2015
Slide 1: Oppenheimer Holdings Inc. November 2015
OPPENHEIMER HOLDINGS INC. NOVEMBER 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
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Wealth Management Capital Markets Commercial Mortgage Banking Wealth Management $641.8 68% Capital Markets $279.6 29% Commercial Mortgage Banking $30.6 3% LET’S LOOK AT OUR RESULTS 10 Business Segment Results LTM September 30, 2015 Shareholders' Equity a
Slide 11: Financial Results Continued
FINANCIAL RESULTS CONTINUED 11 Gross Revenue ($M) Net Income/(Loss) ($ thousands) $840 $860 $880 $900 $920 $940 $960 $980 $1,000 $1,020 $1,040 $1,060 2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q‐15 2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q‐15 Net Income $75,367 $(20,770) $20,824 $38,532 $10,3
Slide 12: Capital Structure as of September 30, 2015
72% 2% 1% 7% 5% 4% 9% U.S. Govt, Agency, & Sov Debt Corporate debt MBS Municipals Convertible bonds Corporate equities Auction rate securities CAPITAL STRUCTURE AS OF SEPTEMBER 30, 2015 12 Conservative Risk Profile Ratios Equity to Assets: Capitalization to Assets: Debt to Equity: Gross Leverage Rat
Slide 13: Select Financial Measures
$21.07 $19.04 $20.87 $24.32 $24.47 $24.34 $26.19 $26.27 $26.29 $33.22 $33.38 $34.88 $37.73 $37.16 $36.80 $38.77 $38.71 $38.92 $10 $15 $20 $25 $30 $35 $40 $45 2007 2008 2009 2010 2011 2012 2013 2014 3Q-15 Tangible BV per share Book Value per Share 13.9% -4.0% 3.7% 6.6% 1.9% -0.1% 4.3% 2.6% 2.2% -6.0%
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
$2.79 $1.30 $0.85 $0.58 $0.30 $0.24 $0.194 $0.174 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Feb-08 2009 2010 2011 2012 2013 2014 Sept-15 WE CONTINUE TO ADDRESS THE ARS MATTER 15 Auction Rate Securities (“ARS”) failed in Feb. 2008 with over $330B outstanding in market Oppenheimer clients held $2.8B in F
Slide 16: Positioned Well for a Rising Interest Rate Environment
$111.4 $89.7 $45.5 $37.7 $33.8 $35.1 $35.5 $37.3 $38.4 2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q-15 Margin Interest Money Fund Sweep Program FDIC Money Market Product 16 POSITIONED WELL FOR A RISING INTEREST RATE ENVIRONMENT Low interest rates have had significant impact on interest and fee r
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
- 100 200 300 400 500 600 700 800 2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q-15 87.1 61.5 63.2 74.0 74.0 92.9 102.2 100.0 101.1 0.0 20.0 40.0 60.0 80.0 100.0 120.0 2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q-15 WEALTH MANAGEMENT OVERVIEW 19 Wealth Management Services Wealth Management repre
Slide 20: Wealth Management (Continued)
62.3 48.1 66.0 73.2 76.0 80.3 84.6 87.3 79.6 0 10 20 30 40 50 60 70 80 90 100 2007 2008 2009 2010 2011 2012 2013 2014 3Q-15 17.5 12.5 16.4 18.8 18.6 20.9 25.3 25.9 23.7 0 5 10 15 20 25 30 2007 2008 2009 2010 2011 2012 2013 2014 3Q-15 50 36 45 51 53 57 61 66 61 - 10 20 30 40 50 60 70 2007 2008 2009 2
Slide 21: Wealth Management (Continued)
0% 20% 40% 60% 80% 100% - 100 200 300 400 500 600 700 2007 2008 2009 2010 2011 2012 2013 2014 TTM 3Q-15 ( $ M ) Advisory Fees - Asset Management Total Commissions Advisory Fees % of Total WEALTH MANAGEMENT (CONTINUED) 21 Traditional Multi-Asset Strategies ˗ Professional money management ˗ Access t
Slide 22: Capital Markets
27 (94) 7 20 13 (15) 7 18 2 (120) (100) (80) (60) (40) (20) - 20 40 60 2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q-15156 273 383 390 322 283 281 299 280 - 50 100 150 200 250 300 350 400 450 2007 2008 2009 2010 2011 2012 2013 2014 LTM 3Q-15 Institutional Equities $131.9 47% Institutional Fixed Inc
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
39.5% 42.8% 33.4% 36.6% 33.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 2011 2012 2013 2014 LTM 3Q-15 285 528 1,368 2,632 3,394 3,885 4,135 4,091 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2008 2009 2010 2011 2012 2013 2014 3Q-15 Construction Loans Permanent Loans 85 118 2
Slide 27: Thank You for Your Time
THANK YOU FOR YOUR TIME ()PPENHEIMER,
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