Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Debt Investor Presentation (November 2017)
43 slides from Icahn Enterprises L.p's debt investor presentation, Nov 30, 2017
Slide 1: Icahn Enterprises L.P. Roadshow Presentation November 2017
Icahn Enterprises L.P. Roadshow Presentation November 2017
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, Automotive, Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate and Home Fashion – Total equity market capitalization of approximately $9.1 (1)
Slide 7: Capitalization and Credit Statistics
Capitalization and Credit Statistics Key Points Strong financial metrics (1) : – Total consolidated liquidity of $6.4 billion – Indicative gross asset value to holding company net debt coverage of 2.4x Holding company cash and cash equivalents value of $582 million (1) Affiliates of Carl Icahn
Slide 8: Summary of Terms
Summary of Terms Issuers Icahn Enterprises L.P. and Icahn Enterprises Finance Corp. (“IEP” or the “Company”). Issue $380.0 in aggregate principal amount of 6.250% Senior Notes due 2022, $380.0 in aggregate principal amount of 6.750% Senior Notes due 2024 and $500.0 in aggregate principal amount of S
Slide 9: Company Overview
Company Overview
Slide 10: Overview of Icahn Enterprises
Overview of Icahn Enterprises Icahn Enterprises L.P. is a diversified holding company with operating segments in Investment, Automotive, Energy, Gaming, Mi nin g, Railcar, Food Packaging, Metals, Real Estate and Home Fashion IEP is majority owned and controlled by Carl Icahn – Over many years, C
Slide 11: Summary Corporate Organizational Chart
66% 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 LLC Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprises Holdings L.P. 1%
Slide 12: 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 approximately 20 professionals with diverse backgrounds ─ Well rounded team with professionals focusing on different areas su
Slide 13: Investment Highlights
Investment Highlights
Slide 14: Investment Highlights
Investment Highlights Diversified Holdings Exposure to Strong, Cyclical Trends and Economic Recovery Significant Asset Coverage Strong, Stable Cash Flow Generation from Operating Subsidiaries 1 2 3 4 14
Slide 15: Diversified Holdings
Diversified Holdings Operating Segments for Icahn Enterprises Automotive(3) 27% Energy(4) 16% Gaming(5) 13% Railcar(6) 8% Food Packaging 2% Metals 1% Real Estate 7% Home Fashion 1% Mining 1% Investment 24% Asset Mix (1)(2) 1 The Company is well diversified across various industries and sectors (1)
Slide 16: 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 leader in each of its principal product categories with a long history of qual
Slide 17: Highlights and Recent Developments: Investment
Highlights and Recent Developments Since inception in 2004 through September 30, 2017, the Investment Funds’ cumulative return was approximately 130.0%, representing an annualized rate of return of approximately 6.7% Long history of investing in public equity and debt securities and pursuing act
Slide 18: Highlights and Recent Developments: Energy
Highlights and Recent Developments Strategic location and complex refineries allows CVR to benefit from access to price advantaged crude oil CVR Partners acquired an additional fertilizer plant in April 2016, giving it geographic and feed stock diversity CVR Energy has annualized dividends of
Slide 19: Segment: Automotive
Segment: Automotive Company Description We conduct our Automotive segment through our wholly owned subsidiaries Federal - Mogul LLC ("Federal - Mogul") and Icahn Automotive Group LLC ("Icahn Automotive"), which is the parent company of IEH Auto Parts Holding LLC and The Pep Boys - Manny, Moe and J
Slide 20: Highlights and Recent Developments: Railcar
Highlights and Recent Developments The initial sale of ARL to SMBC Rail closed on June 1, 2017 ─ Received approximately $1.3 billion in cash resulting in a pre - tax gain of $1.5 billion for the first nine months ending September 30, 2017 ─ In October 2017, we sold an additional 4,382 railcars to
Slide 21: Highlights and Recent Developments: Gaming
Highlights and Recent Developments In August 2017, Tropicana repurchased shares of its common stock aggregating $36 million and IEP purchased shares of Tropicana common stock aggregating $95 million in connection with a combined tender offer commenced by IEP and Tropicana Segment: Gaming Company D
Slide 22: Significant Asset Coverage
Significant Asset Coverage 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 22 Note: Indicative net asset value does not purport to reflect a valuation of IEP. The calculated
Slide 23: Strong, Stable Cash Flow Generation from Operating Subsidiaries
Strong, Stable Cash Flow Generation from Operating Subsidiaries The Company and its subsidiaries generate ample cash flow to cover interest payments and operating expenses Holding Company liquidity of $3.7 billion (1) , comprised of Hold Co. cash and IEP’s interest in the Investment Funds 4 (1)
Slide 24: Liquidity Serves as a Competitive Advantage
Liquidity Serves as a Competitive Advantage The Company and its subsidiaries maintain ample liquidity to take advantage of attractive opportunities for their respective businesses ($Millions) 24 4 Actual As Adjusted (1) Liquidity As of 9/30/2017 As of 9/30/2017 Liquid Assets: Hold Co. Cash & Cash
Slide 25: Financial Performance
Financial Performance
Slide 26: Financial Performance
Financial Performance Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises 26 ($373) ($1,194) ($1,128) $1,926 FYE 2014 FYE 2015 FYE 2016 LTM 9/30/17 $1,018 $930 $837 $1,640 FYE 2014 FYE 2015 FYE 2016 LTM 9/30/17 LTM September 30, LTM September 30, ($
Slide 27: Consolidated Financial Snapshot
Consolidated Financial Snapshot 27 ($Millions) LTM September 30, 2014 2015 2016 2016 2017 2017 Net Income (Loss): Investment ($684) ($1,665) ($1,487) ($972) $440 ($75) Automotive (90) (352) 77 103 569 543 Energy 168 7 (604) (588) 15 (1) Metals (25) (51) (20) (13) 4 (3) Railcar 188 213 183 123 1,074
Slide 28: Strong Balance Sheet
Strong Balance Sheet ($Millions) 28 InvestmentAutomotive Energy Railcar Gaming Metals Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $17 $366 $849 $106 $125 $14 $17 $18 $41 $1 $484 $2,038 Cash held at consolidated affiliated partnerships
Slide 29: Appendix
Appendix 29
Slide 30: IEP history and track record
IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to ten operati ng segments and approximately $33 billion of assets as of September 30, 2017 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and
Slide 31: Highlights and Recent Developments: 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 ─ Acquired a plastic casing manufacturer in Poland in December 2016 and a fibrous casing manufacturer in January 2017
Slide 32: Highlights and Recent Developments: Metals
Highlights and Recent Developments Increasing global demand for steel and other metals drives demand for U.S. scrap Results are currently impacted by headwinds from: ─ Low iron ore prices ─ Strong U.S. dollar ─ Increased steel imports Scrap recycling process is “greener” than virgin steel prod
Slide 33: Highlights and Recent Developments: Real Estate
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 (Over $200bn market cap, A - credit) for two large buildings with leases through 2020 – 2021 ─ 12 l
Slide 34: Highlights and Recent Developments: Mining
Highlights and Recent Developments IEP acquired a controlling interest in Ferrous Resources in June 2015 through a tender offer to purchase any and all of the outstanding shares. ─ Prior to the tender offer, IEP owned 14% of the company’s outstanding common stock and as of September 30, 2017 owned
Slide 35: Highlights and Recent Developments: Home Fashion
Highlights and Recent Developments One of the largest providers of home textile goods in the United States Transitioned majority of manufacturing to low cost plants overseas Streamlined merchandising, sales and customer service divisions Focus on core profitable customers and product lines ─
Slide 36: EBITDA Reconciliation
EBITDA Reconciliation 36
Slide 37: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation 37 ($Millions) Twelve Months Ended September 30, 2014 2015 2016 2016 2017 2017 (unaudited) Adjusted EBITDA attributable to Icahn Enterprises: Net income (loss) ($373) ($1,194) ($1,128) ($922) $2,132 $1,926 Interest expense, net 614 762 620 468 485 $637 Incom
Slide 38: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2017
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2017 ($Millions) 38 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $440 $569 $15 $4 $1,074 $90 $10 $8 $469 ($
Slide 39: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2016
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2016 ($Millions) 39 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($972) $103 ($588) ($13) $123 ($69) ($21)
Slide 40: Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended September 30, 2017
Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended September 30, 2017 ($Millions) 40 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($75) $543 ($1) ($3) $1,134 $64 $7
Slide 41: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016 ($Millions) 41 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($1,487) $77 ($604) ($20) $183 ($95) ($24) $8 $12
Slide 42: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015 ($Millions) 42 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($1,665) ($352) $7 ($51) $213 $38 ($195) ($3) $61
Slide 43: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014 ($Millions) 43 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($684) ($90) $168 ($25) $188 $269 $9 $22 $2 ($388) ($529)
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