Oppenheimer Holdings, Inc. · NYSE:OPY
Oppenheimer — Q4 2017 Earnings Presentation
18 slides from Oppenheimer's earnings presentation, March 2018
Slide 1: Oppenheimer Holdings Inc. Investor Presentation
Oppenheimer Holdings Inc. Investor Presentation
Slide 2: 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 3: Agenda
Agenda 1. Company Overview 2. Business Segments 3. Financial Overview 2
Slide 4: Company Overview
1. Company Overview ()PPENHEIMER
Slide 5: 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 6: Acquisitions History
History Distinguished Heritage: Long History of Successful Acquisitions The Company has successfully built its business upon accretive acquisitions and aims to continue in that tradition Fahnestock Viner Holdings Fahnestock Viner Holdings ARS overhang Oppenheimer & Co. becomes listed on the changes
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 US and Internationally 92 offices in the U.S. 5 international offices 2,992 employees – 1,107 financial advisors – 185+ institutional sales professionals – 30+ senior research analysts US London Hong Tel Aviv Geneva St. Kong Helier Wealth Management Eu
Slide 9: Business Segments
2. Business Segments ()PPENHEIMER
Slide 10: 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 Client Assets Under Administration ($bn) Retail services: 90 87.3 – Full‐Service Brokerage 86.9 84.6 – Financial Planning 85 –
Slide 11: 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% 2012 2013 2014 2015 2016 2017 Advisory Fees ‐ Asset Man agement
Slide 12: Capital Markets Overview
Capital Markets Overview A leading capital markets business providing sophisticated investment banking, research and trading solutions Summary Breakdown of Revenue 2017 ($231.6mm) Capital Markets segment includes: – Institutional Equities Institutional Equities $73.6 32% • Sales & Trading $113.1 I
Slide 13: Financial Overview
3. Financial Overview ()PPENHEIMER
Slide 14: 2017 Summary Operating Results
2017 Summary Operating Results ($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 transactions, net 23,273 20,481‐ 13.6% O
Slide 15: Capital Structure
Capital Structure Conservative risk profile with strong balance sheet Conservative Risk Profile As of December 31, 2017 ($in thousands) Straight‐forward balance sheet Total Assets: $2,438,517 Strong capital base Regulatory Net Capital of $142 million Stockholders’ Equity: $523,911 Long‐Term De
Slide 16: Interest Rate Sensitivity
Interest Rate Sensitivity Beginning to see the benefit in rising rate environment Interest and Fee Revenues ($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 pro
Slide 17: Auction Rate Securities
Auction Rate Securities Client ARS exposure significantly reduced ARS Holdings Client ($bn) Company ($mm) $3.00 $2.79 $120 $113.9* $98.6 $2.50 $100 $91.6 $92.0 $88.1 $77.1 $2.00 $80 $70.4 $1.50 $1.30 $60 $0.85 $36.7 $1.00 $40 $0.58 $0.50 $0.30 $0.24 $20 $0.194 $0.167 $5.3 $4.5 $0.113 $0.086 $0.00 $0
Slide 18: ()PPENHEIMER
()PPENHEIMER