Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (June 2013)
45 slides from Icahn Enterprises L.p's investor presentation, Jun 12, 2013
Slide 1: Icahn Enterprises L.P. Investor Presentation June 2013
Icahn Enterprises L.P. Investor Presentation June 2013
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: Investment Highlights
Investment Highlights (1) Source : Bloomberg. Includes reinvestment of distributions. Based on the share price as of June 10, 2013. (2) Returns are through June 10, 2013 (3) Return assumes that IEP’s holdings in CVR Energy remained in the Investment Funds for the entire period. IEP obtained a major
Slide 4: The Icahn Strategy
The Icahn Strategy Across all of our businesses, our success is based on a simple formula: we seek to find undervalued companies in the Graham & Do dd tradition, a methodology for valuing stocks that primarily looks for deeply depressed prices. However, while the typical Graham & Dodd value investor
Slide 5: The Icahn Strategy (continued)
The Icahn Strategy (continued) Unlike the individual investor, we have the wherewithal to purchase companies that we feel we can operate more effectively th an incumbent management. In addition, through our Investment segment, we are in a position to pursue our activist strategy by purchasing stock
Slide 6: The Offering
The Offering Issuer: Icahn Enterprises L.P. Nasdaq GS ticker: IEP Security: Depositary units Depositary units offered: 1,500,000 Underwriters’ option to purchase additional depositary units: 225,000 (15%) LP Units offered as % of units outstanding after offering: 1.35% (1.55% assuming full exercise
Slide 7: Management Participants
Daniel Ninivaggi President & Chief Executive Officer Management Participants President and Chief Executive Officer of Icahn Enterprises G.P. Inc., the Company’s general partner and Icahn Enterprises L.P . Previously served in a variety of executive positions at Lear Corporation, including most r
Slide 8: Company Overview
Company Overview 8
Slide 9: Overview of Icahn Enterprises
Overview of Icahn Enterprises Icahn Enterprises L.P . (“IEP” or the “Company”) is a diversified holding company with operating segments in Investment, Automotive , Energy, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion IEP is a permanent capital vehicle that is majority ow
Slide 10: 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 Global market share leader in each of its principal product categories with a long history o
Slide 11: Summary Corporate Organizational Chart
71% CVR Energy Inc. (NYSE: CVI) Summary Corporate Organizational Chart WestPoint Home LLC PSC Metals Inc. AREP Real Estate Holdings, LLC Tropicana Entertainment Inc. (OTCPK:TPCA) Federal - Mogul Corp. (NasdaqGS:FDML) Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprise
Slide 12: IEP history and diversified portfolio growth
IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to nine operating segments and over $26 billion of assets as of March 31, 2013 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and enhancing th
Slide 13: Proven Track Record of Delivering Superior Returns
Proven Track Record of Delivering Superior Returns Time Period Trailing Returns (1) IEP Berkshire Leucadia Loews S&P 500 Dow Jones Russell 2000 1 Year 90.4% 41.7% 46.7% 14.4% 26.9% 24.7% 30.9% 3 Years 113.7% 55.7% 49.0% 42.5% 61.5% 62.4% 61.6% 5 Years 8.2% 36.6% (38.7%) (3.1%) 35.5% 42.8% 45.5% 7 Ye
Slide 14: 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 15: Situation Overview
Situation Overview Historically, two businesses had a natural synergy ─ Aftermarket benefitted from OEM pedigree and scale Review of business identified numerous dis - synergies by having both under one business ─ Different customers, methods of distribution, cost structures, engineering and R&D
Slide 16: 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 nearly 20 professionals with diverse backgrounds ─ Well rounded team with professionals focusing on different areas such as e
Slide 17: Overview of Operating Segments
Overview of Operating Segments 17
Slide 18: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments Since inception in November 2004, the Investment Funds' gross return is 198.5%, representing an annualized rate of return of 13.5% through June 10, 2013 ─ Year - to - date returns of approximately 9.4% as of June 10, 2013 Long history of investing in public equ
Slide 19: Significant Holdings
Significant Holdings As of June 10, 2013 (3) As of December 31, 2012 (3) As of December 31, 2011 (3) Company Mkt. Value ($mm) (4) % Ownership (5) Company Mkt. Value ($mm) (4) % Ownership (5) Company Mkt. Value ($mm) (4) % Ownership (5) $1,309 9.0% $1,083 11.5% $1,920 9.4% $1,258 11.5% $992 9.0% $1,7
Slide 20: Energy: Highlights and Recent Developments
Highlights and Recent Developments CVR Refining IPO completed on January 23, 2013 and secondary offering on May 14, 2013 CVR Partners secondary offering completed May 22, 2013. Crude supply advantages supported by increasing North American crude oil production, decreasing North Sea production,
Slide 21: CVR Refining, LP
Gasoline 47.8% Distillate 40.8% Other 11.5% CVR Refining, LP (NYSE:CVRR ) Two PADD II Group 3 refineries with combined capacity of 185,000 barrels per day The Company enjoys advantages that enhance the crack spread ─ Has access to and can process price - advantaged mid - continent local and Cana
Slide 22: CVR Partners, LP
CVR Partners, LP (NYSE:UAN ) Attractive market dynamics for nitrogen fertilizer ─ Decreasing world farmland per capita ─ Increasing demand for corn (largest use of nitrogen fertilizer) and meat ─ Nitrogen represents ~63 % of fertilizer consumption ─ Nitrogen fertilizers must be applied annually, c
Slide 23: Segment: Automotive
Segment: Automotive Company Description Federal Mogul Corporation (NasdaqGS:FDML) operates in two business segments: Powertrain and Vehicle Component Systems ─ Powertrain focuses on original equipment powertrain products for automotive, heavy duty and industrial applications ─ Vehicle Component Sy
Slide 24: Federal-Mogul Leading Market Positions
Powertrain Segment VCS Segment Product Line Market Position Product Line Market Position Pistons #1 in diesel pistons #2 a cross all pistons Engine Global #1 Rings & Liners Market leader Sealing Components Global #1 in Gaskets Valve Seats and Guides Market leader Brake Pads / Components Global #1 Be
Slide 25: Railcar: Highlights and Recent Developments
Highlights and Recent Developments ARI reported record 2012 results ─ $ 712 million of revenue and $ 150 million of Adjusted EBITDA ─ Approximately 6,400 railcar backlog into 2014 ─ Initiated $1.00 annualized dividend ARI manufacturing segment strong Tank demand from increasing crude oil produ
Slide 26: Gaming: Highlights and Recent Developments
Highlights and Recent Developments Management uses a highly analytical approach to enhance marketing, improve utilization, optimize product mix and reduce expenses ─ Established measurable, property specific, customer service goals and objectives to meet customer needs ─ Utilize sophisticated cust
Slide 27: Food Packaging: 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 ─ S ales to emerging economies have grown on average 13% per year since 2007 and, in 2012, accounted for almost 50% of total company sales compared to 36% in 2007
Slide 28: Metals: Highlights and Recent Developments
Highlights and Recent Developments North American steel production growth is expected to be 5% in 2013 ─ Demand increasing with rebound in non - residential (35 - 40% of steel demand, +6% growth) and residential (5 - 10% of steel demand, +20% growth) construction (1) Increasing global demand for
Slide 29: Real Estate: Highlights and Recent Developments
Highlights and Recent Developments Business strategy is based on long - term investment outlook and operational expertise Rental Real Estate Operations Net lease portfolio overview ─ Single tenant (~$190bn market cap, A - credit) for two large buildings with leases through 2020 – 2021 ─ 27 addit
Slide 30: Home Fashion: Highlights and Recent Developments
Highlights and Recent Developments One of the largest providers of home textile goods in the United States Largely completed restructuring of manufacturing footprint ─ Transitioned majority of manufacturing to low cost plants in Bahrain and Pakistan Streamlined merchandising, sales and custome
Slide 31: Financial Performance
Financial Performance 31
Slide 32: Financial Performance
Financial Performance Adjusted EBITDA Attributable to Icahn Enterprises Equity Attributable to Icahn Enterprises 32 $939 $1,547 $1,542 $1,950 2010 2011 2012 LTM 3/31/13 $3,183 $3,755 $4,669 $5,068 2010 2011 2012 3/31/2013 LTM ($ in millions) 2010 2011 2012 3/31/2013 Investment 342$ 876$ 158$ 359$ Au
Slide 33: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 33 2010 2011 2012 3/31/2012 3/31/2013 Revenues: Investment 887$ 1,896$ 398$ 71$ 603$ 930$ Automotive 6,239 6,937 6,677 1,774 1,680 6,583 Energy - - 5,519 - 2,338 7,857 Gaming 78 624 611 153 143 601 Railcar 270 514 657 182 138 613 Food Packaging 317 338 341
Slide 34: Strong Balance Sheet
Strong Balance Sheet As of March 31, 2013 Food Real Home Holding Investment Automotive Energy Metals Railcar Gaming Packaging Estate Fashion Company Consolidated Total Assets: Cash and Cash Equivalents: 2$ 269$ 1,041$ 16$ 57$ 241$ 18$ 26$ 12$ 755$ 2,437$ Cash at Partnerships and Restricted Cash 766
Slide 35: IEP Summary Financial Information
IEP Summary Financial Information 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 (1) Investment Segment Equity Attributable to Icahn Enterprises as of the respective dates in
Slide 36: Appendix — EBITDA Reconciliation
Appendix — EBITDA Reconciliation 36
Slide 37: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation 37 ($Millions) Twelve Months Ended March 31, 2010 2011 2012 2012 2013 2013 Attributable to Icahn Enterprises Net income 199$ 750$ 396$ 49$ 277$ 624$ Interest expense, net 338 377 456 103 119 472 Income tax expense (benefit) 11 27 (128) (36) 93 1 Depreciation
Slide 38: EBITDA Reconciliation by Segment – FYE 2012
EBITDA and Adjusted EBITDA Reconciliation by Segment – FYE 2012 38 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 157$ (24)$ 263$ 21$ 29$ 4$ (58)$ 19$ (27)$ 12$ 396$ Inte
Slide 39: EBITDA Reconciliation by Segment – FYE 2011
EBITDA and Adjusted EBITDA Reconciliation by Segment – FYE 2011 39 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 868$ 121$ -$ 13$ 2$ 4$ 6$ 18$ (56)$ (226)$ 750$ Interest
Slide 40: EBITDA Reconciliation by Segment – FYE 2010
EBITDA and Adjusted EBITDA Reconciliation by Segment – FYE 2010 40 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income 340$ 116$ -$ -$ (15)$ 10$ 4$ 8$ (42)$ (222)$ 199$ Interest expe
Slide 41: EBITDA Reconciliation by Segment – Q1 13
EBITDA and Adjusted EBITDA Reconciliation by Segment – Q1 2013 41 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 233$ (29)$ 151$ 3$ 1$ 2$ (6)$ 5$ (3)$ (80)$ 277$ Interest
Slide 42: EBITDA Reconciliation by Segment – Q1 12
EBITDA and Adjusted EBITDA Reconciliation by Segment – Q1 2012 42 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 31$ 23$ -$ 8$ 7$ 1$ (2)$ 5$ (9)$ (15)$ 49$ Interest expen
Slide 43: EBITDA Reconciliation by Segment – LTM Q1 2013
EBITDA and Adjusted EBITDA Reconciliation by Segment – LTM Q1 2013 43 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 359$ (76)$ 414$ 16$ 23$ 5$ (62)$ 19$ (21)$ (53)$ 624$
Slide 44: Adjusted EBITDA Reconciliation – CVR Energy (CVI)
Adjusted EBITDA Reconciliation – CVR Energy (CVI) 44 ($Millions) CVR Energy (CVI) Source: Q1 2013 CVI Investor Presentation 2011 2012 LTM Q1 2013 Net income (loss) attributable to CVR Energy stockholders 346$ 379$ 569$ Interest expense, net of interest income 55 75 71 Depreciation and amortization 9
Slide 45: Adjusted EBITDA Reconciliation – American Railcar Industries (ARII)
Adjusted EBITDA Reconciliation – American Railcar Industries (ARII) 45 ($Millions) American Railcar Industries (ARII) Source: Q1 2013 & Q4 2012 Investor Presentation FYE 2012 LTM Q1 2013 Net earnings 64$ 70$ Income tax expense 42 46 Interest expense 18 16 Loss on debt extinguishment 2 3 Interest inc
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