Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (May 2021)
31 slides from Icahn Enterprises L.p's investor presentation, May 12, 2021
Slide 1: Icahn Enterprises L.P. Investor Presentation May 2021
Icahn Enterprises L.P. Investor Presentation May 2021
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 , Home Fashion and Pharma • IEP is majority owned and controlled by Carl Icahn ◦ Over many years, Carl Icahn has co
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 8 9% 71% Icahn Capital LP Viskase Companies I
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: IEP history and track record of acquisitions and sales
• IEP began as American Real Estate Partners, which was founded in 1987, and now has diversified its portfolio to eight operating segments and approximately $2 8 billion of assets as of March 31, 2021 • IEP has demonstrated a history of successfully acquiring undervalued assets and improving and enh
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 professionals with diverse backgrounds ◦ Well rounded team with professionals focusing on different areas such as equity, dis
Slide 10: Overview of Operating Segments
Overview of Operating Segments 10
Slide 11: Segment: Investment
Highlights and Recent Developments • Since inception in 2004 through March 31, 2021, the Investment Funds’ cumulative return was approximately 88.7 %, representing an annualized rate of return of approximately 3.9 % • Long history of investing in public equity and debt securities and pursuing activi
Slide 12: Segment: Energy
Segment: Energy Segment Description • CVR Energy, Inc. (NYSE:CVI) is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing businesses through its interests in CVR Refining, LP and CVR Partners, LP (NYSE:UAN) ◦ CVR Refining is an independent p
Slide 13: Segment: Automotive
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 automotiv
Slide 14: Segment: Food Packaging
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 • Developed markets remain a steady source of income ◦ Distribution channels to certain customers spanning more than 5
Slide 15: Segment: Metals
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 s drive scrap demand and are significantly more energy efficient than blast furnaces ◦ Elec
Slide 16: Segment: Real Estate
Highlights and Recent Developments • Business strategy is based on long - term investment outlook and operational expertise Investment Property Operations • Maximize value of commercial lease portfolio through effective management of existing properties ◦ Seek to sell assets on opportunistic basis P
Slide 17: Segment: Home Fashion
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: Segment: Pharma
Highlights and Recent Developments • In December 2020, we acquired all of the outstanding common stock of Vivus upon its emergence from bankruptcy. Prior to Vivus ’ emergence from bankruptcy, we held an investment in all of Vivus ’ convertible corporate debt securities, as well as all of its other o
Slide 19: Financial Performance
Financial Performance 19
Slide 20: Financial Performance: Net Income and Adjusted EBITDA
Financial Performance 20 Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises ($Millions) Investment $319 ($775) ($765) $552 Energy 213 246 (194) (159) Automotive (230) (197) (198) (171) Food Packaging (12) (17) 4 6 Metals 5 (22) - 8 Real Estate 112 1
Slide 21: Consolidated Financial Snapshot
Consolidated Financial Snapshot 21 Net Income (Loss): Investment $679 ($1,543) ($1,447) ($1,802) $862 $1,217 Energy 334 314 (327) (113) (67) (281) Automotive (230) (197) (198) (73) (46) (171) Food Packaging (15) (22) 4 (4) (1) 7 Metals 5 (22) - (3) 5 8 Real Estate 112 16 (16) 1 (1) (18) Home Fashion
Slide 22: Strong Balance Sheet
Strong Balance Sheet 22 ASSETS Cash and cash equivalents $15 $707 $42 $13 $0 $27 $2 $2 $1,134 $1,942 Cash held at consolidated affiliated partnerships and restricted cash 1,078 7 18 - 2 10 3 - 16 1,134 Investments 10,926 315 28 - - 15 - - 196 11,480 Accounts receivable, net - 226 119 86 73 11 28 29
Slide 23: IEP Summary Financial Information
IEP Summary Financial Information 23 • Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and boo k v alue or market comparable of other assets Note: Indicative net asset value does not purport to reflect a valuation of IEP. The calc
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 24
Slide 25: Non-GAAP Financial Measures
Non - GAAP Financial Measures 25 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 26: Adjusted EBITDA Reconciliation by Segment – LTM March 31, 2021
Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended March 31, 2021 26 Net income (loss) $1,217 ($281) ($171) $7 $8 ($18) ($9) $7 $0 $0 ($323) $437 Interest expense, net 229 125 10 9 1 - 1 - - - 327 702 Income tax expense (benefit) - (118) (47) 8 - - - - - - 238 81 Depreciation, depl
Slide 27: Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2021
Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2021 27 Net income (loss) $862 ($67) ($46) ($1) $5 ($1) ($4) $8 $0 $0 ($157) $599 Interest expense, net 76 31 3 2 - - - - - - 82 194 Income tax expense (benefit) - (46) (12) 1 - - - - - - 74 17 Depreciation, depletion and amort
Slide 28: Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2020
Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2020 28 Net income (loss) ($1,802) ($113) ($73) ($4) ($3) $1 ($2) $0 $0 $0 ($310) ($2,306) Interest expense, net 43 27 5 4 - - - - - - 83 162 Income tax expense (benefit) - (40) (19) 1 - - - - - - (122) (180) Depreciation, depl
Slide 29: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2020
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 20 20 29 Net income (loss) ($1,447) ($327) ($198) $4 $0 ($16) ($7) ($1) $0 $0 ($476) ($2,468) Interest expense, net 196 121 12 11 1 - 1 - - - 328 670 Income tax expense (benefit) - (112) (54) 8 - - - - - - 42 (116) Depreciation, dep
Slide 30: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 9 30 Net income (loss) ($1,543) $314 ($197) ($22) ($22) $16 ($17) $0 $311 $0 ($599) ($1,759) Interest expense, net 106 102 20 17 1 (1) 1 - 3 - 296 545 Income tax expense (benefit) - 112 (55) 6 - (6) - - 1 - (38) 20 Depreciation,
Slide 31: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 8 31 Net income (loss) $679 $334 ($230) ($15) $5 $112 ($11) $0 $1 $1 ($639) $237 Interest expense, net 46 102 16 15 - 1 1 - 2 - 328 511 Income tax expense (benefit) - 46 (52) (4) 1 5 - - 2 2 (14) (14) Depreciation, depletion and