Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Debt Investor Presentation (May 2019)
37 slides from Icahn Enterprises L.p's debt investor presentation, May 7, 2019
Slide 1: Icahn Enterprises L.P. Roadshow Presentation May 2019
Icahn Enterprises L.P. Roadshow Presentation May 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 – Total equity market capitalization of approximately $14.2 (1) billion as of M
Slide 7: Capitalization and Credit Statistics Key Points
Capitalization and Credit Statistics Key Points ; Strong pro forma financial metrics (1) : – Total consolidated liquidity of $9.0 billion – Indicative gross asset value to holding company net debt coverage of 3.9x ; Holding company cash and cash equivalents value of $3.0 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 $500 million of Senior Notes Term 7 - Year Senior Notes due 2026 Optional Redemption Non - call 3 Placement Type 144A and Regulation S Private Placement with Registration Rights Use of
Slide 9: Company Overview
Company Overview
Slide 10: Overview of Icahn Enterprises
As of March 31, LTM Ended 2019 March 31, 2019 Net (Loss) Income Adj. EBITDA ($Millions) Assets Revenue Attrib. to IEP Attrib. to IEP Investment $9,514 ($259) ($137) ($119) Energy 4,688 7,083 254 500 Automotive 3,663 2,867 (238) (60) Food Packaging 552 380 (12) 44 Metals 241 441 (2) 18 Real Estate 49
Slide 11: Summary Corporate Organizational Chart
Summary Corporate Organizational Chart 11 WestPoint Home LLC PSC Metals Inc. Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprises Holdings L.P. Icahn Capital LP Viskase Companies Inc. (OTCPK:VKSC) As of 3/31/2019, Icahn Enterprises had investments with a fair market v
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) : 41% 25% 22% 4% 4% 2% 1% 1% ; The Company is well diversified across various industries and sectors Note: As of March 31,2019. (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 4Q 2018 Dispositions Generated Cash Proceeds of $3.2 Billion ; 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 $7
Slide 17: Exposure to Strong, Cyclical Trends and Economic Recovery
Exposure to Strong, Cyclical Trends and Economic Recovery 17 ; 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 opport uni ties ─ Cap
Slide 18: Segment: Investment
Segment: Investment 18 Highlights and Recent Developments ; From inception in November 2004, the Funds’ gross return is approximately 124.1%, representing an annualized rate of return of approximately 5.8% through March 31, 2019 ; Long history of investing in public equity and debt securities and pu
Slide 19: Segment: Energy
Segment: Energy 19 Segment Description ; CVR Energy, Inc. (NYSE: CVI) is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing business through its interests in CVR Refining, LP and CVR Partners, LP (NYSE: UAN) ─ CVR Refining is an independen
Slide 20: Segment: Automotive
Segment: Automotive 20 Segment Description ; The Company conducts the Automotive segment through the 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 provid
Slide 21: Segment: Food Packaging
Segment: Food Packaging 21 Segment Description ; Viskase Companies, Inc (OTCPK:VKSC) is a worldwide leader in the production and sale of cellulosic, fibrous and plastic casings for the processed meat and poultry industry ─ Leading worldwide manufacturer of non - edible cellulosic casing for small -
Slide 22: Segment: Metals
Segment: Metals 22 Segment Description ; PSC Metals, Inc. is one of the largest independent metal recycling companies in the U.S. ; Collects industrial and obsolete scrap metal, processes it into reusable forms and supplies the recycled metals to its customers ; Strong regional footprint (Upper Midw
Slide 23: Segment: Real Estate
Historical Segment Financial Summary Real Estate FYE December 31, LTM ($Millions) 2016 2017 2018 3/31/19 Select Income Statement Data: Net sales & other revenue $88 $87 $106 $105 Adj. EBITDA 35 40 48 41 Net (loss) income 5 549 112 109 Adj. EBITDA attr. to IEP 35 40 48 41 Net income (loss) attr. to I
Slide 24: Segment: Home Fashion
Segment: Home Fashion 24 Segment Description ; WestPoint Home LLC is engaged in manufacturing, sourcing, marketing, distributing and selling home fashion consumer products ; WestPoint Home owns many of the most well - known brands in home textiles including Martex, Grand Patrician, Luxor and Vellux
Slide 25: Segment: Mining
Segment: Mining 25 Segment Description ; Ferrous Resources has certain rights to iron ore mineral resources in Brazil and develops mining operations and related infrastructure to produce and sell iron ore products to the global steel industry ─ Significant iron ore assets in the State of Minas Gerai
Slide 26: Significant Asset Coverage
Significant Asset Coverage 26 ; Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and boo k v alue or market comparables of other assets Note: Indicative net asset value does not purport to reflect a valuation of IEP. The calculated
Slide 27: Liquidity Serves as a Competitive Advantage
As of: Pro Forma ($Millions) 3/31/2019 3/31/2019 Liquid Assets: Holding Company Cash & Cash Equivalents $2,139 $3,033 Holding Company Investment in Investment Funds 4,763 4,763 Subsidiaries Cash & Cash Equivalents 625 625 Total $7,527 $8,421 Subsidiary Revolver Availability: Energy $443 $443 Automot
Slide 28: Financial Performance
Financial Performance
Slide 29: Financial Performance
Financial Performance Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises 29 ($Millions) $61 $642 $561 $42 2016 2017 2018 LTM 3/31/19 ($1,128) $2,430 $1,507 $981 2016 2017 2018 LTM 3/31/19 FYE December 31, LTM 2016 2017 2018 3/31/19 Adjusted EBITDA A
Slide 30: Balance Sheet
Balance Sheet 30 Period Ended March 31, 2019 Food Real Home Holding ($Millions) Investment Energy Automotive Packaging Metals Estate Fashion Mining Company Consolidated Assets Cash and cash equivalents $7 $467 $65 $33 $11 $41 $1 - $2,139 $2,764 Cash at affilated partnerships & restricted cash 2,286
Slide 31: Appendix
Appendix 31
Slide 32: 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 eight opera tin g segments and approximately $24 billion of assets as of March 31, 2019 ; IEP has demonstrated a history of successfully acquiring underv
Slide 33: EBITDA Reconciliation
EBITDA Reconciliation 33
Slide 34: Adj. EBITDA Reconciliation by Segment – Twelve Months Ended March 31, 2019
Adj. EBITDA Reconciliation by Segment – Twelve Months Ended March 31, 2019 34 Twelve Months Ended March 31, 2019 Food Real Home Holding ($Millions) Investment Energy Automotive Packaging Metals Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) ($310) $388 ($238) ($
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
Icahn Enterprises — Debt Investor Presentation (May 2019) on 6ix