Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Debt Investor Presentation (September 2019)
37 slides from Icahn Enterprises L.p's debt investor presentation, Sep 3, 2019
Slide 1: Icahn Enterprises L.P. Roadshow Presentation September 2019
Icahn Enterprises L.P. Roadshow Presentation September 2019
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: Presenters
Presenters Keith Cozza – President & Chief Executive Officer SungHwan Cho – Chief Financial Officer 3
Slide 4: Agenda
Agenda Transaction Overview Company Overview Investment Highlights Financial Performance Appendix 4
Slide 5: Transaction Overview
Transaction Overview
Slide 6: Executive Summary
Executive Summary Icahn Enterprises L.P. (“IEP” or the “Company”) is a diversified holding company, with global businesses in Investment, Energy, Automotive, Food Packaging, Metals, Real Estate, Home Fashion and Mining (until sold on August 1, 2019) – Total equity market capitalization of approxim
Slide 7: Capitalization and Credit Statistics
Capitalization and Credit Statistics Key Points Strong pro forma financial metrics (1) : – Total consolidated liquidity of $7.8 billion – Indicative gross asset value to holding company net debt coverage of 3.9x Holding company cash and cash equivalents value of $2.5 billion (1) Affiliates of
Slide 8: Summary of Terms
Summary of Terms Issuers Icahn Enterprises L.P. and Icahn Enterprises Finance Corp. (“IEP” or the “Company”) Issue $500 million of Senior Notes Term 5 - Year Senior Notes due 2024 Optional Redemption Non - callable for life (IEP may redeem all or a part of the notes at par plus accrued and unpaid in
Slide 9: Company Overview
Company Overview
Slide 10: Overview of Icahn Enterprises
Overview of Icahn Enterprises 10 (1) Investment segment total assets represents book value of equity. (2) Excludes discontinued operations. (2) ▪ Icahn Enterprises L.P. is a diversified holding company with operating segments in Investment, Energy, Automotive, Food Packaging, Metals, Real Estate, Ho
Slide 11: Summary Corporate Organizational Chart
Summary Corporate Organizational Chart 11 Note: Percentages denote equity ownership as of August 1, 2019. Excludes intermediary and pass through entities. CVR Energy Inc. (NYSE: CVI) WestPoint Home LLC PSC Metals Inc. AREP Real Estate Holdings, LLC Icahn Enterprises G.P. Inc. Icahn Enterprises L.P.
Slide 12: Deep Management Team Led by Carl Icahn
Deep Management Team Led by Carl Icahn 12 (2) ▪ Led by Carl Icahn – Substantial investing history provides IEP with unique network of relationships and access to Wall Street ▪ Team consists of approximately 20 professionals with diverse backgrounds – Well rounded team with professionals focusing on
Slide 13: Investment Highlights
Investment Highlights
Slide 14: Investment Highlights
Investment Highlights Diversified Holdings History of Successfully Monetizing Investments Exposure to Strong, Cyclical Trends and Economic Recovery Significant Asset Coverage Liquidity Serves as a Competitive Advantage 14 1 2 3 4 5
Slide 15: Diversified Holdings
Diversified Holdings Asset Mix by Operating Segments for Icahn Enterprises (1)(2) : 40% 30% 19% 4% 4% 1% 1% 1% The Company is well diversified across various industries and sectors Note: As of June 30, 2019. (1) Indicative gross asset valued defined as market value of public subsidiaries, market v
Slide 16: History of Successfully Monetizing Investments
History of Successfully Monetizing Investments 16 Sold ARL during 2017 for $3.4 billion including assumption of debt, resulting in cash proceeds to IEP of $1.8 billion. IEP acquired ARL in 2013 for total consideration of approximately $772 million August 2017 sale of Las Vegas property for $600
Slide 17: Exposure to Strong, Cyclical Trends and Economic Recovery
Exposure to Strong, Cyclical Trends and Economic Recovery 17 200 year heritage with some of the best known brands in home fashion; consolidation likely in fragmented sector Leading global market position in non - edible meat casings poised to capture further growth in emerging markets Established re
Slide 18: Segment: Investment
Segment: Investment 18 (1) Aggregate ownership held directly by the funds, as well as Carl Icahn and his affiliates. Based on most recent 13F Holdings R epo rts, 13D filings or other public filings. (2) Based on closing share price as of specified date. (3) Total economic ownership as a percentage o
Slide 19: Segment: Energy
Segment: Energy 19 3 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 outsta
Slide 20: Segment: Automotive
Segment: Automotive 20 3 Segment Description ▪ We conduct our Automotive segment through our wholly owned subsidiary Icahn Automotive Group LLC ("Icahn Automotive"). ▪ Icahn Automotive is engaged in providing automotive repair and maintenance services to its customers as well as the retail and whole
Slide 21: Segment: Food Packaging
Segment: Food Packaging 21 3 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
Slide 22: Segment: Metals
Segment: Metals 22 3 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 furnace drive scrap demand and are significantly more energy efficient than bl
Slide 23: Segment: Real Estate
Segment: Real Estate 23 AREP Real Estate Holdings, LLC 3 (1) Excludes results from timeshare and casino resort property in Aruba. Highlights and Recent Developments ▪ Business strategy is based on long - term investment outlook and operational expertise Rental Real Estate Operations ▪ Maximize value
Slide 24: Segment: Home Fashion
Segment: Home Fashion 24 3 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 cu
Slide 25: Significant Asset Coverage
Significant Asset Coverage 25 Note: Indicative net asset value does not purport to reflect a valuation of IEP. The calculated Indicative net asset value d oes not include any value for our Investment Segment other than the fair market value of our investment in the Investment Funds. A valuation is a
Slide 26: Liquidity Serves as a Competitive Advantage
As of: Pro Forma (1) ($Millions) 6/30/2019 6/30/2019 Liquid Assets: Holding Company Cash & Cash Equivalents $3,337 $2,530 Holding Company Investment in Investment Funds 4,614 4,614 Subsidiaries Cash & Cash Equivalents 671 671 Total $8,622 $7,815 Subsidiary Revolver Availability: Energy $441 $441 Aut
Slide 27: Financial Performance
Financial Performance
Slide 28: Financial Performance
Financial Performance 28 Net (loss) Income Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises ($1,128) $2,430 $1,507 $181 2016 2017 2018 LTM 6/30/2019 $61 $642 $561 ($551) 2016 2017 2018 LTM 6/30/2019 Year Ended December 31, LTM June 30, ($Millions) 2019 Investment (
Slide 29: Balance Sheet
Balance Sheet 29 As of June 30, 2019 Food Real Home Holding ($Millions) Investment Energy Automotive Packaging Metals Estate Fashion Mining Company Consolidated Assets Cash and cash equivalents $8 $540 $53 $22 $3 $41 $4 - $3,337 $4,008 Cash at affilated partnerships & restricted cash 651 - - 1 1 2 1
Slide 30: Appendix
Appendix 30
Slide 31: Evolution of Icahn Enterprises
Evolution of Icahn Enterprises 31 (1) Based on closing stock price of $67.47 and approximately 205.6 million depositary and general partner equivalent units as of Aug ust 30, 2019. ▪ IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to eig
Slide 32: EBITDA Reconciliation
EBITDA Reconciliation 32
Slide 33: Non-GAAP Financial Measures
Non - GAAP Financial Measures 33 The Company uses certain non - GAAP financial measures in evaluating its performance . These include non - GAAP EBITDA and Adjusted EBITDA . EBITDA represents earnings from continuing operations before interest expense, income tax (benefit) expense and depreciation a
Slide 34: Adj. EBITDA Reconciliation by Segment – Twelve Months Ended June 30, 2019
Adj. EBITDA Reconciliation by Segment – Twelve Months Ended June 30, 2019 34 Twelve Months Ended June 30, 2019 Food Real Home Holding ($Millions) Investment Energy Automotive Packaging Metals Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) ($1,002) $447 ($258) ($
Slide 35: Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2018
Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2018 35 Year Ended December 31, 2018 Food Real Home Holding ($Millions) Investment Energy Automotive Packaging Metals Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) $679 $379 ($230) ($15) $5
Slide 36: Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2017
Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2017 36 Year Ended December 31, 2017 Food Real Home Holding ($Millions) Investment Energy Automotive Packaging Metals Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) $118 $275 ($51) ($6) ($44)
Slide 37: Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2016
Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2016 37 Year Ended December 31, 2016 Food Real Home Holding ($Millions) Investment Energy Automotive Packaging Metals Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) ($1,487) ($604) $19 $8 ($2
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