Loews Corporation · NYSE:L
Loews — Investor Presentation (February 2021)
36 slides from Loews's investor presentation, February 2021
Slide 1: Company Overview
COMPANY OVERVIEW February 2021
Slide 2: Legal Disclaimers
Legal Disclaimers Forward Looking Statements and Risk Factors. The information presented herein is generally available from public sources, including our and our subsidiaries’ earnings releases and SEC filings. We urge you to read those documents, and we specifically direct you to the forward-lookin
Slide 3: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Consolidated subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hot
Slide 4: Corporate Structure
Corporate Structure $7.6 billion Property & Net Earned Premiums Publicly 89.6% Casualty Traded Ownership Insurance $11.0 billion Market Cap Long-term view, Natural Gas & NGL Midstream 100% Ownership $819 million EBITDA1 diversified $3.5 billion Cash portfolio, one & Investments class of stock $2.3 b
Slide 5: The Loews Discount
The Loews Discount Loews’s market cap is less than its sum-of-the-parts. CNA trades at a discount to its peers and the market seems to assign little value to the private subsidiaries. $9.9 billion Market Trades at earnings and Value of Loews’s Stake BV discount to peers + Net Cash -- $1.2 billion $1
Slide 6: Debt Maturity Profile
Debt Maturity Profile Staggered long-term debt maturities $500 ($ millions) $500 $500 $500 $300 2.63% 3.75% 3.20% 6.00% 4.13% Notes 2.63% 2.63% Notes 3.75% 3.75% 3.20% Notes Notes 6.00% 6.00% 4.13% 4.13% Notes Senior Senior Senior Senior Senior Senior Senior Senior Senior Notes Notes Notes Notes Not
Slide 7: Loews Capital Allocation Approach
Loews Capital Allocation Approach • Maintain a strong balance sheet • Evaluate capital deployment opportunities based on risk-adjusted returns • Continually balance the uses of Loews capital 1 2 3 Repurchase Invest in existing Acquire a new Loews shares subsidiaries subsidiary Loews Corporation │CNA
Slide 8: Share Repurchases
Share Repurchases Share Repurchases $1,200 340 $1,059 Shares Outstanding $1,011 $1,000 $917 320 Since year-end $800 2017, we have ($ millions) 312 300 291 (millions) retired nearly 19% $600 of our common shares 280 $400 269 outstanding $200 260 240 2018 2019 2020 Avg. Purchase Price Per Share $49.85
Slide 9: Shares Outstanding Since 1970
Shares Outstanding Since 1970 Loews has retired over 1 billion shares since the beginning of 1970 1,600 1,299 1,200 (millions) 800 400 269 0 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014 2020 2019 Shares outstanding shown as of December 31st for each year. Adjusted for stock splits. Loews Corpor
Slide 10: Net Investment Income and Dividends Paid to Loews
Net Investment Income and Dividends Paid to Loews $1,200 $1,156 Dividends from 229 $1,006 Subsidiaries1 $1,000 $926 $950 59 $877 $876 $838 $868 146 146 Corporate $800 141 94 22 $744 Net Invest. 61 Income2 $616 ($ millions) $600 927 947 878 $400 782 816 780 804 683 736 616 $200 $0 (10) 2011 2012
Slide 11: Loews's 12-month Cash Roll Forward
Loews’s 12-month Cash Roll Forward ($ millions) Loews Corporation │CNA │Boardwalk │ Hotels │ Altium 11
Slide 12: Loews's Net Cash Since 2018
Loews’s Net Cash Since 2018 ($ billions) All data is as of December 31st for each year. Loews Corporation │CNA │Boardwalk │ Hotels │ Altium 12
Slide 13: Loews is a Long-Term Partner
Working with Our Subsidiaries While each subsidiary’s experienced management team guides day-to-day operations, Loews provides advice in several areas: Major capital Mid- to long-term Hiring of senior allocation decisions strategic planning management Loews is a Long-Term Partner Loews Corporation │
Slide 14: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Consolidated subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hot
Slide 15: CNA Financial
CNA Financial Company Snapshot • One of the largest U.S. commercial property and casualty insurance companies • Provides a broad range of standard and specialized property and casualty insurance products and services SPECIALTY COMMERCIAL INTERNATIONAL LIFE & GROUP Financial lines, Property & casualt
Slide 16: CNA – Strategic Direction
CNA – Strategic Direction Continues to make significant progress towards their goal of growing P&C Underlying Combined Ratio1 underwriting profits on a sustained basis P&C Operations • An underwriting focused culture • Strong expertise across underwriting, risk control, claim and actuarial • Discipl
Slide 17: Disciplined Capital Management
Disciplined Capital Management Excellent capitalization with prudent 14.9 15.5 $16 leverage and modest corporate obligations $1,200 13.9 $14 • $12.7 billion of GAAP equity, $2.8 billion of debt, Regular Dividend and statutory surplus of $10.7 billion as of $1,000 Special Dividend $12 Total Capital 1
Slide 18: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Consolidated subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hot
Slide 19: Boardwalk Pipelines
Boardwalk Pipelines Company Snapshot Boardwalk Strategy • Predominantly transport and store natural gas and liquids with minimal exposure to commodity price volatility • Stable demand pull from mostly high credit quality Strengthen Financial Enhance Existing Identify Strategic Operate Safely & custo
Slide 20: Three Areas of Focus
Three Areas of Focus Natural Gas and Natural Gas Natural Gas Liquids Liquids Storage Transportation Transportation Facilities • Boardwalk has 13,650 miles of • 445 miles of ethylene, ethane, • Natural gas storage facilities are interconnected natural gas propane and propylene pipeline comprised of 1
Slide 21: Flexible Financial Position
Flexible Financial Position Substantial Backlog Strong Liquidity • Over $9 billion of firm contract backlog • Boardwalk expects to fund its 2021 capital spending from operating cash flows • Approximately 75% of future contracted revenues are with investment grade customers • Committed to achieving i
Slide 22: Key Growth Projects Recently Completed & Under Construction
Key Growth Projects Recently Completed & Under Construction Collectively, these growth projects represent ~$500 million in capital and ~1.5 Bcf/d of firm natural gas transportation capacity and additional NGL infrastructure. Industrial Market Expansion Current Boardwalk Louisiana Project Midstream a
Slide 23: Environmental, Social and Governance Highlights
Environmental, Social and Governance Highlights Environment Social Governance Environmental Stewardship Commitment to Safety Strong Governance Structure • Focused on reducing methane emissions • Safety is a Core Value of Boardwalk, guiding daily • Boardwalk committed to ethical business practices •
Slide 24: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Consolidated subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hot
Slide 25: Loews Hotels & Co
Loews Hotels & Co Company Snapshot System-wide Guest Rooms With an additional 242 rooms • Owned, joint venture and managed hotels currently under development 16,565 in the U.S. and Canada 13,796 12,746 • Unique, local experience • Focused on developing hotels with built-in demand drivers • Severely
Slide 26: Loews Hotels & Co – Key Operating Metrics
Loews Hotels & Co – Key Operating Metrics Loews Hotels & Co is focused on profitable growth over the long term • Loews Hotels & Co and the travel and tourism industry have been severely impacted by the COVID-19 pandemic • To combat the current challenging environment, Loews Hotels & Co has been focu
Slide 27: Loews Hotels & Co – 2020 Operating Trends
Loews Hotels & Co – 2020 Operating Trends The impact of COVID-19 led to severely low occupancy in 2020. Portfolio operating trends: • Gradual improvement from June to December, driven largely by leisure travel demand. • Government restrictions and extremely limited corporate travel in response to he
Slide 28: Loews Hotels & Co – Portfolio
Loews Hotels & Co – Portfolio Ownership - Ops Commenced / As of December 31, 2020 Location Rooms Ownership %1 Managed Only OWNED (11) Loews Chicago Hotel Chicago, IL 400 100% 2015 Loews Chicago O'Hare Hotel Chicago, IL 556 100% 2014 Loews Coronado Bay Resort* San Diego, CA 439 100% 2000 Loews Kansas
Slide 29: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Consolidated subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hot
Slide 30: Altium Packaging
Altium Packaging Packaging company that serves stable consumer-oriented end markets • Altium Packaging’s experienced COMPANY SNAPSHOT management team brings a Leading North American manufacturer of rigid strong track record of plastic packaging with 67 facilities across the operational success U.S.
Slide 31: Altium Packaging – Protecting the Environment
Altium Packaging – Protecting the Environment The disposal of plastic and its effects on our environment is an important topic, and one that Loews and Altium take very seriously. Altium offers several environmentally innovative solutions to help minimize the impact of plastic on the environment and
Slide 32: Altium Packaging – Rigid Packaging Overview
Altium Packaging – Rigid Packaging Overview • Focus on short- and mid-run volumes • Cover a variety of attractive, recession-resistant, consumer-oriented focus segments Household Chemical Food / Nutrition Dairy 16% of Sales 13% of Sales 23% of Sales Industrial / Specialty Chemical Pharma Water / Oth
Slide 33: Altium Packaging - Acquisitions with Attractive Post-Synergy Multiples
Altium Packaging - Acquisitions with Attractive Post- Synergy Multiples Diversification through acquisition Investment Outlook • Fragmented industry with tuck-in opportunities • Significant synergies from tuck-ins • Ability to self-fund tuck-in acquisitions • Attractive cash-on-cash returns • Strong
Slide 34: In Summary
In Summary Effective capital allocation Long-term Financial strength value creation Conservative management Loews Corporation │CNA │Boardwalk │ Hotels │ Altium 34
Slide 35: Appendix – Boardwalk EBITDA
Appendix – Boardwalk EBITDA Years Ended December 31 ($ millions) 2020 2019 2018 Pretax income $ 290 $ 296 $ 241 Depreciation and amortization 359 346 345 Interest expense 170 179 175 EBITDA $ 819 $ 821 $ 761 Financial results are at the subsidiary level. Loews Corporation │CNA │Boardwalk │ Hotels │
Slide 36: Appendix – Loews Hotels & Co Adjusted EBITDA
Appendix – Loews Hotels & Co Adjusted EBITDA Years Ended December 31 ($ millions) 2020 2019 2018 2017 2016 Consolidated GAAP pretax income (loss) $ (274) $ (28) $ 73 $ 65 $ 22 Non-recurring items1 13 110 2 (11) 17 Pretax income (loss) excluding non- $ (261) $ 82 $ 75 $ 54 $ 39 recurring items Deprec