Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (March 2020)
27 slides from Icahn Enterprises L.p's investor presentation, Mar 6, 2020
Slide 1: Icahn Enterprises L.P. Investor Presentation March 2020
Icahn Enterprises L.P. Investor Presentation March 2020
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward - Looking Statements and Non - GAAP Financial Measures Forward - Looking Statements This presentation contains certain statements that are, or may be deemed to be, “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E o
Slide 3: Company Overview
Company Overview 3
Slide 4: Overview of Icahn Enterprises
Overview of Icahn Enterprises ▪ Icahn Enterprises L.P. is a diversified holding company with operating segments in Investment, Energy, Automotive, Food Packa gin g, Metals, Real Estate and Home Fashion ▪ IEP is majority owned and controlled by Carl Icahn – Over many years, Carl Icahn has contributed
Slide 5: Summary Corporate Organizational Chart
CVR Energy Inc. (NYSE: CVI) Summary Corporate Organizational Chart WestPoint Home LLC PSC Metals LLC AREP Real Estate Holdings, LLC Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprises Holdings L.P. 1% 1% 99% LP Interest 79% 71% Icahn Capital LP Viskase Companies Inc.
Slide 6: Diversified Subsidiary Companies with Significant Inherent Value
Diversified Subsidiary Companies with Significant Inherent Value The Company’s diversification across multiple industries and geographies provides a natural hedge against cyclical and general economic swings 200 year heritage with some of the best known brands in home fashion; consolidation likely i
Slide 7: History and Track Record of Acquisitions and Sales
▪ IEP began as American Real Estate Partners, which was founded in 1987, and now has a diversified portfolio to seven operating se gments and approximately $25 billion of assets as of December 31, 2019 ▪ IEP has demonstrated a history of successfully acquiring undervalued assets and improving and en
Slide 8: Ability to Maximize Shareholder Value Through Proven Activist Strategy
▪ IEP seeks undervalued companies and often becomes “actively” involved in the targeted companies ▪ Activist strategy requires significant capital, rapid execution and willingness to take control of companies ▪ Implement changes required to improve businesses Ability to Maximize Shareholder Value Th
Slide 9: Deep Team Led by Carl Icahn
Deep Team Led by Carl Icahn ▪ Led by Carl Icahn – Substantial investing history provides IEP with unique network of relationships and access to Wall Street ▪ Team consists of 14 professionals with diverse backgrounds – Well rounded team with professionals focusing on different areas such as equity,
Slide 10: Overview of Operating Segments
Overview of Operating Segments 10
Slide 11: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments ▪ On January 2, 2020, IEP invested $1,000 million in the Investment Funds Since inception in 2004 through December 31, 2019 the Investment Funds’ cumulative return was approximately 101.5%, representing an annualized rate of return of approximately 4.7% ▪ Long hist
Slide 12: Energy Segment: Highlights and Recent Developments
Highlights and Recent Developments ▪ In January 2019, CVR Energy purchased the remaining common units of CVR Refining not already owned by CVR Energy for $241 million, excluding the amount paid to us. As a result: – CVR Energy and its affiliates own 100% of CVR Refining’s outstanding common units ▪
Slide 13: Automotive Segment: Description and Financial Summary
Segment: Automotive Segment Description ▪ We conduct our Automotive segment through our wholly owned subsidiary Icahn Automotive Group LLC ("Icahn Automotive"). ▪ Icahn Automotive is engaged in the retail and wholesale distribution of automotive parts in the aftermarket as well as providing automoti
Slide 14: Food Packaging Segment: Highlights and Recent Developments
Highlights and Recent Developments ▪ Future growth expected to be driven by changing diets of a growing middle class in emerging markets – Majority of revenues from emerging markets – Acquired a plastic casing manufacturer in Poland in December 2016 and a fibrous casing manufacturer in January 2017
Slide 15: Metals Segment: Highlights and Recent Developments
Highlights and Recent Developments ▪ Increasing global demand for steel and other metals drives demand for U.S. scrap ▪ Scrap recycling process is “greener” than virgin steel production – Electric arc furnaces drive scrap demand and are significantly more energy efficient than blast furnaces – Elect
Slide 16: Real Estate Segment: Highlights and Recent Developments
Highlights and Recent Developments ▪ Business strategy is based on long - term investment outlook and operational expertise Rental Real Estate Operations ▪ Maximize value of commercial lease portfolio through effective management of existing properties – Seek to sell assets on opportunistic basis Pr
Slide 17: Home Fashion Segment: Highlights and Recent Developments
Highlights and Recent Developments ▪ One of the largest providers of home textile goods in the United States ▪ Transitioned majority of manufacturing to low cost plants overseas ▪ Streamlined merchandising, sales and customer service divisions ▪ Focus on core profitable customers and product lines –
Slide 18: Financial Performance
Financial Performance 18
Slide 19: Financial Performance
Financial Performance 19 Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises FYE December 31, ($Millions) 2017 2018 2019 Investment $80 $319 ($775) Energy 253 213 246 Automotive (51) (230) (197) Food Packaging (5) (12) (17) Metals (44) 5 (22) Real Es
Slide 20: Consolidated Financial Snapshot
Consolidated Financial Snapshot 20 FYE December 31, ($Millions) 2017 2018 2019 Net income (loss): Investment $118 $679 ($1,543) Energy 316 334 314 Automotive (51) (230) (197) Food Packaging (6) (15) (22) Metals (44) 5 (22) Real Estate 549 112 16 Home Fashion (20) (11) (17) Mining 10 1 311 Railcar 1,
Slide 21: Strong Balance Sheet
Strong Balance Sheet 21 As of December 31, 2019 ($Millions) Investment Energy Automotive Food Packaging Metals Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $11 $652 $46 $22 $3 $53 $1 $3,006 $3,794 Cash held at consolidated affiliated partnerships and restric
Slide 22: IEP Summary Financial Information
IEP Summary Financial Information 22 ($ Millions) ▪ Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and book value or market comparables of other assets Note: Indicative net asset value does not purport to reflect a valuation of I
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 23
Slide 24: Non-GAAP Financial Measures
Non - GAAP Financial Measures 24 The Company uses certain non - GAAP financial measures in evaluating its performance . These include non - GAAP EBITDA and Adjusted EBITDA . EBITDA represents earnings from continuing operations before interest expense, income tax (benefit) expense and depreciation a
Slide 25: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019 25 ($Millions) Investment Energy Automotive Food Packaging Metals Real Estate Home Fashion Mining Railcar Holding Company Consolidated Adjusted EBITDA Net income (loss) ($1,543) $314 ($197) ($22) ($22) $16 ($17) $311 $ — ($599)
Slide 26: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018 26 ($Millions) Investment Energy Automotive Food Packaging Metals Real Estate Home Fashion Mining Railcar Holding Company Consolidated Adjusted EBITDA Net income (loss) $679 $334 ($230) ($15) $5 $112 ($11) $1 $1 ($639) $237 Int
Slide 27: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017 27 ($Millions) Investment Energy Automotive Food Packaging Metals Real Estate Home Fashion Mining Railcar Holding Company Consolidated Adjusted EBITDA Net income (loss) $118 $316 ($51) ($6) ($44) $549 ($20) $10 $1,171 $355 $2,3
Icahn Enterprises — Investor Presentation (March 2020) on 6ix