Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (February 2013)
41 slides from Icahn Enterprises L.p's investor presentation, February 2013
Slide 1: Icahn Enterprises L.P. Investor Presentation
Icahn Enterprises L.P. Investor Presentation February 2013
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements and Non-GAAP Financial Measures This presentation includes “forward-looking statements” which include statements concerning our plans, objectives, goals, strategies, future events, future sales or performance, business trends, capital expenditures, fi
Slide 3: Investment Highlights
Investment Highlights Net asset value per unit: $67.98 (see page 36 for a more detailed discussion) Proven Track Record of Delivering Superior Returns – IEP stock price performance since January 2000 Total return of 1,003%(1) – S&P 500, Dow Jones Industrial and Russell 2000 indices increased a
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 & Dodd tradition. However, while the typical Graham & Dodd value investor purchases undervalued securities and waits for results, we often become actively in
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 run more efficiently than incumbent management. In addition, through our Investment segment, we are in a position to pursue our activist strategy by purchasing stock or de
Slide 6: Management Participants
Management Participants President and Chief Executive Officer of Icahn Enterprises G.P Inc., the Company’s general partner and Icahn Enterprises L.P. Daniel Ninivaggi President & Previously served in a variety of executive positions at Lear Corporation, including most recently as Chief Executive
Slide 7: Business Strengths
Business Strengths Ability to Maximize Shareholder Value Through Proven Activist Strategy Proven Track Record of Delivering Superior Returns Significant Experience Optimizing Business Strategy IEP stock price performance since January 2000(1) and Capital Structure – Total return of 1,003% – Annual
Slide 8: Company Overview
Company Overview 6
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 stock has increased 1,003% from January 1, 2000, re
Slide 10: Summary Corporate Organizational Chart
Summary Corporate Organizational Chart Icahn 1% Icahn Enterprises Enterprises L.P. G.P. Inc. (NasdaqGS: IEP) 99% LP Interest 1% Icahn Enterprises Holdings L.P. 55.6% American Railcar Leading North American manufacturer and lessor of 100% Industries, Inc. hopper and tank railcars and provider of rail
Slide 11: Evolution of Icahn Enterprises
Evolution of Icahn Enterprises IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to nine operating segments and over $24 billion of assets Investment record is based on a long-term investment horizon that enhances business value and fa
Slide 12: Proven Track Record of Delivering Superior Returns
Proven Track Record of Delivering Superior Returns In 2000, IEP began to expand its business beyond its traditional real estate activities to fully embrace its activist strategy ─ IEP stock has increased 1,003% from January 1, 2000, representing an annualized return of 20%(1) Since inception in
Slide 13: Ability to Maximize Shareholder Value Through Proven Activist Strategy
Ability to Maximize Shareholder Value Through Proven Activist Strategy IEP seeks undervalued companies and often becomes “actively” involved in the targeted companies Putting Activism into Action Activist strategy requires significant capital, rapid execution and willingness to take control of c
Slide 14: Significant Experience Optimizing Business Strategy and Capital Structure
Significant Experience Optimizing Business Strategy and Capital Structure IEP’s management team possesses substantial strategic and financial expertise ─ Maintains deep knowledge of capital markets, bankruptcy laws, mergers and acquisitions and transaction processes Seeks to help setup the strat
Slide 15: Diversified Subsidiary Companies with Significant Inherent Value
Diversified Subsidiary Companies with Significant Inherent Value IEP’s subsidiary companies possess key competitive strengths and / or leading market positions IEP seeks to create incremental value by investing in organic growth and targeting businesses that offer consolidation opportunities ─ C
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 15
Slide 18: Segment: Investment Management
Segment: Investment Management Company Description Highlights and Recent Developments IEP invests its proprietary capital through various Since inception in November 2004, the Investment Funds' gross return is 198%, private investment funds (the “Investment Funds”) representing an annualized rat
Slide 19: Icahn Capital
Icahn Capital Historical Gross Returns(1) 37.8% 33.3% 34.5% (2) 17.9% 20.2% 15.2% 12.3% 2005 2006 2007 2008 2009 2010 2011 2012 (35.6%) Significant Holdings As of February 15, 2013(3) As of December 31, 2011(3) As of December 31, 2010(3) Mkt. Value % Mkt. Value % Mkt. Value % Company ($mm)(4) Owners
Slide 20: Unlocking Value Through Activism
Unlocking Value Through Activism Genzyme 2/22/10: Icahn Capital announces intention to seek four board seats, begins proxy battle $80 3/24/10: FDA announces fines and increased inspections, Genzyme declines 13% over next two days 70 6/9/10: Icahn Capital reaches agreement to end proxy fight an
Slide 21: Segment: Energy
Segment: Energy Company Description Highlights and Recent Developments CVR Energy, Inc. (NYSE:CVI) operates as a CVR Refining IPO completed on January 16, 2013 holding company that owns majority interests in two ─ CVR Refining forecasted 2013E Adjusted EBITDA of $901 million separate operating s
Slide 22: CVR Refining, LP (NYSE:CVRR)
CVR Refining, LP (NYSE:CVRR) CVR Refining, LP (NYSE:CVRR) Strategically Located Refineries and Supporting Logistics Assets Two PADD II Group 3 refineries with combined capacity of 185,000 barrels per day Strategic location and logistics assets provide access to price advantaged mid-continent, Ba
Slide 23: How CVR Refining Makes Money
How CVR Refining Makes Money CVR Refining makes money by buying crude oil and selling refined products (primarily gasoline and diesel) The crack spread for mid-continent suppliers includes the Brent-WTI differential The Company enjoys some advantages that enhance this spread ─ Has access to an
Slide 24: CVR Partners, LP (NYSE:UAN)
CVR Partners, LP (NYSE:UAN) CVR Partners, LP (NYSE:UAN) Strategically Located Refineries and Supporting Logistics Assets Attractive market dynamics for nitrogen fertilizer ─ Decreasing world farmland per capita ─ Increasing demand for corn (largest use of nitrogen fertilizer) and meat Yukon 0 (1)
Slide 25: Segment: Automotive
Segment: Automotive Company Description Powertrain Highlights and Recent Developments Federal Mogul Corporation (NasdaqGS:FDML) Industry-leading powertrain products to improve fuel economy, reduce emission operates in two business segments: Powertrain and enhance durability and Vehicle Component
Slide 26: Federal-Mogul Corp.'s Leading Market Position
Federal-Mogul Corp.’s Leading Market Position Powertrain Segment VCS Aftermarket Segment Product Line Market Position Product Line Market Position Pistons #1 in diesel pistons Engine Global #1 #2 across all pistons Rings & Liners Market leader Sealing Components Global #1 in Gaskets Valve Seats and
Slide 27: Segment: Railcar
Segment: Railcar Company Description Highlights and Recent Developments Conducts Railcar segment through American ARI reported record 2012 results Railcar Industries, Inc. (NasdaqGS:ARII) and AEP ─ $712 million of revenue and $150 million of Adjusted EBITDA Leasing, LLC ─ Approximately 7,000 rai
Slide 28: Segment: Gaming
Segment: Gaming Company Description Highlights and Recent Developments Tropicana Entertainment Inc. (OTCPK:TPCA) Management uses a highly analytical approach to enhance marketing, improve operates eight casino facilities featuring utilization, optimize product mix and reduce expenses approximate
Slide 29: Tropicana Entertainment Inc. (OTCPK:TPCA)
Tropicana Entertainment Inc. (OTCPK:TPCA) Icahn Enterprise’s Investment Thesis Utilize Tropicana Entertainment to build a leading, geographically-diverse gaming company by improving operations, achieving synergies across the platform and opportunistically acquiring assets in attractive markets at
Slide 30: Segment: Food Packaging
Segment: Food Packaging Company Description Highlights and Recent Developments Viskase Companies, Inc (OTCPK:VKSC) is a Future growth expected to be driven by changing diets of a growing middle class in worldwide leader in the production and sale of emerging markets cellulosic, fibrous and plast
Slide 31: Segment: Metals
Segment: Metals Company Description Highlights and Recent Developments PSC Metals, Inc. is one of the largest independent New management team hired in 3Q 2012 metal recycling companies in the U.S. ─ CEO is 20 year industry veteran with Omnisource Collects industrial and obsolete scrap metal, p
Slide 32: Segment: Real Estate
Segment: Real Estate Company Description Highlights and Recent Developments Consists of rental real estate, property Business strategy is based on long-term investment outlook and operational development and associated resort activities expertise Rental real estate consists primarily of retail
Slide 33: Segment: Home Fashion
Segment: Home Fashion Company Description Highlights and Recent Developments WestPoint Home LLC is engaged in One of the largest providers of home textile goods in the United States manufacturing, sourcing, marketing, distributing and selling home fashion consumer products Largely completed re
Slide 34: Financial Performance
Financial Performance 32
Slide 35: Financial Performance
Financial Performance EBITDA Attributable to Icahn Enterprises Equity Attributable to Icahn Enterprises $2,334 $4,775 $2,033 $3,755 $3,183 $2,834 $907 $939 2009 2010 PF 2011 PF LTM 9/30/12 2009 2010 2011 LTM 9/30/12 FYE December 31, PF LTM As of December 31, As of ($ millions) 2009 2010 PF 2011 9/30
Slide 36: Financial Performance by Segment
Financial Performance by Segment Income Statement LTM September 30, 2012 Investment(1) Automotive Energy(2) Metals Railcar Gaming Food Packaging Home Fashion Real Estate Holding Consolidated ($ millions) (Icahn Capital) (Federal-Mogul) (CVR Energy) (PSC Metals) (American Railcar) (Tropicana Ent.) (V
Slide 37: Financial Highlights – Recent Developments
Financial Highlights – Recent Developments Significant Annual Dividend Increase On February 11, 2013, IEP announced an annual distribution increase to $4.00 per depositary unit ─ Provides each depositary unit holder the option to elect either cash or depositary units ─ Mr. Icahn presently intends
Slide 38: IEP Summary Financial Information
IEP Summary Financial Information Significant net asset value demonstrated by market value of IEP’s public subsidiaries and book value of other assets ($ millions, except per share data) Amount Per Unit(1) Market-Valued Subsidiaries: Holding Company Interests in Funds(2) $2,598 $24.28 CVR Energy,
Slide 39: Business Strengths
Business Strengths Ability to Maximize Shareholder Value Through Proven Activist Strategy Proven Track Record of Delivering Superior Returns Significant Experience Optimizing Business Strategy IEP stock price performance since January 2000(1) and Capital Structure – Total return of 1,003% – Annual
Slide 40: Appendix—EBITDA Reconciliation
Appendix—EBITDA Reconciliation 38
Slide 41: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation EBITDA and Adjusted EBITDA Reconciliation Pro Forma(1) Estimated(2) ($ millions) LTM 9/30/12 FYE 12/31/12 Attributable to Icahn Enterprises: Net (loss) income $703 $350 Interest expense 465 462 Income tax expense (benefit) (1) (103) Depreciation, depletion a
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