Loews Corporation · NYSE:L
Loews — Investor Presentation (February 2022)
35 slides from Loews's investor presentation, February 2022
Slide 1: Company Overview
COMPANY OVERVIEW February 2022
Slide 2: Legal Disclaimers
Legal Disclaimers Forward Looking Statements and Risk Factors. The information presented herein is generally available from public sources, including our and our subsidiaries’ earnings releases and SEC filings. We urge you to read those documents, and we specifically direct you to the forward-lookin
Slide 3: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 4: Corporate Structure
Corporate Structure $8.2 billion Property & Net Earned Premiums Publicly 89.6% Casualty Traded Ownership $12.7 billion Insurance Market Cap Long-term view, Natural Gas & NGL Midstream 100% Ownership $843 million EBITDA1 diversified $3.4 billion Cash portfolio, one & Investments class of stock $2.3 b
Slide 5: The Loews Discount
The Loews Discount Loews’s market cap is less than its sum-of-the-parts. CNA trades at a discount to its peers and the market seems to assign little value to the private subsidiaries. $11.4 billion Market Trades at earnings and Value of Loews’s Stake BV discount to peers + Net Cash -- $1.1 billion $
Slide 6: Debt Maturity Profile
Debt Maturity Profile Staggered long-term debt maturities $500 ($ millions) $500 $500 $500 $300 2.63% 3.75% 3.20% 6.00% 4.13% Notes 2.63% 2.63% Notes 3.75% 3.75% 3.20% Notes Notes 6.00% 6.00% 4.13% 4.13% Notes Senior Senior Senior Senior Senior Senior Senior Senior Senior Notes Notes Notes Notes Not
Slide 7: Loews Capital Allocation Approach
Loews Capital Allocation Approach • Maintain a strong balance sheet • Evaluate capital deployment opportunities based on risk-adjusted returns • Continually balance the uses of Loews capital 1 2 3 Repurchase Invest in existing Acquire a new Loews shares subsidiaries subsidiary Loews Corporation │CNA
Slide 8: Share Repurchases
Share Repurchases 400 392 387 373 350 Since year-end 340 337 2012, we have 332 (millions) retired nearly 37% 300 312 of our common 291 shares outstanding 269 248 250 200 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Shares Repurchased 6 5 15 33 3 5 20 22 22 21 (millions) Total Cost $212 $228 $62
Slide 9: Net Investment Income and Dividends Paid to Loews
Net Investment Income and Dividends Paid to Loews Dividends $1,200 $1,156 from Subsidiaries1 229 $1,006 $1,000 $950 $952 $926 59 $877 $876 $868 $838 146 99 Corporate 94 22 146 $800 $744 141 Net Investment 61 Income (Loss)2 ($ millions) $600 927 947 878 853 $400 782 816 780 804 683 736 $200 $0 (1
Slide 10: Loews's 12-month Cash & Investments Roll Forward
Loews’s 12-month Cash & Investments Roll Forward ($ millions) 1. Received gross cash proceeds of $420 million from the sale of 47% of Altium Packaging. Loews Corporation │CNA │Boardwalk │ Hotels │ Altium 10
Slide 11: Loews's Net Cash Since 2019
Loews’s Net Cash Since 2019 ($ billions) Loews Corporation │CNA │Boardwalk │ Hotels │ Altium 11
Slide 12: Loews is a Long-Term Partner
Working with Our Subsidiaries While each subsidiary’s experienced management team guides day-to-day operations, Loews provides advice in several areas: Major capital Mid- to long-term Hiring of senior allocation decisions strategic planning management Loews is a Long-Term Partner Loews Corporation │
Slide 13: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 14: CNA Financial
CNA Financial Company Snapshot • One of the largest U.S. commercial property and casualty insurance companies • Provides a broad range of standard and specialized property and casualty insurance products and services SPECIALTY COMMERCIAL INTERNATIONAL LIFE & GROUP Financial lines, Property & casualt
Slide 15: CNA – Strategic Direction
CNA – Strategic Direction Continues to make significant progress Underlying Combined Ratio1 towards its goal of growing P&C P&C Operations underwriting profits on a sustained basis • An underwriting focused culture • Strong expertise across underwriting, risk 92.6% control, claim and actuarial • Dis
Slide 16: Disciplined Capital Management
Disciplined Capital Management Excellent capitalization with prudent $14.9 $15.5 $15.6 $16 leverage and modest corporate $1,200 Regular Dividend $14 obligations Special Dividend $1,000 Total Capital 1 $12 • $12.8 billion of GAAP equity, $2.8 billion of debt, and statutory surplus of $11.3 billion as
Slide 17: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 18: Boardwalk Pipelines
Boardwalk Pipelines Company Snapshot Boardwalk Strategy • Predominantly transports and stores natural gas and liquids with minimal exposure to commodity price volatility • Stable demand pull from predominantly high credit Maintains Strong Enhances Existing Identifies Strategic Operates Safely & qual
Slide 19: Three Areas of Focus
Three Areas of Focus Natural Gas and Natural Gas Natural Gas Liquids Liquids Storage Transportation Transportation Facilities • Boardwalk has 13,615 miles of • 450 miles of ethylene, ethane, • Natural gas storage facilities are interconnected natural gas propane and propylene pipeline comprised of 1
Slide 20: Flexible Financial Position
Flexible Financial Position Substantial Backlog Strong Liquidity • Over $9 billion of firm contract backlog • Boardwalk expects its resources, including its operating cash flows, revolving credit facility and cash on hand, • Approximately 75% of future contracted revenues are with to adequately fund
Slide 21: Key Growth Projects Under Construction
Key Growth Projects Under Construction Power Plant in Indiana Capacity: 220,000 MMBtu/d Percentage of Revenue of End-Use Markets Collectively, Boardwalk’s natural gas In service: First Half 2024 (as of December 31) growth projects represent over 600,000 6% MMBtu/day of firm transportation capacity.
Slide 22: Sustainability Approach
Sustainability Approach Environmental Social Governance Boardwalk is working to provide safe, Boardwalk is dedicated to creating a safe, Boardwalk values integrity, transparency and affordable and reliable energy to its engaging and inclusive work culture for its accountability as the foundation of
Slide 23: Focused on Reducing its Carbon Footprint
Focused on Reducing its Carbon Footprint Boardwalk is focused on reducing emissions associated with the transportation and storage of natural gas from its pipeline system. The company seeks to go above and beyond the state and federal regulations to minimize emissions by using a variety of strategie
Slide 24: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 25: Loews Hotels & Co
Loews Hotels & Co System-wide Guest Rooms Company Snapshot With an additional 1,130 rooms • Owned, joint venture and managed hotels currently under development 16,565 16,445 in the U.S. and Canada 13,796 • Unique, local experiences • Focused on developing hotels with built-in demand drivers • Signif
Slide 26: Loews Hotels & Co – Key Operating Metrics
Loews Hotels & Co – Key Operating Metrics Loews Hotels & Co is focused on profitable growth over the long term • Loews Hotels & Co and the travel and tourism industry have been significantly impacted by the COVID-19 pandemic • Looking beyond the current difficult environment, the company's growth st
Slide 27: Loews Hotels & Co – Portfolio
Loews Hotels & Co – Portfolio Ownership - Ops Commenced / As of December 31, 2021 Location Rooms Ownership %1 Managed Only OWNED (10) Loews Chicago Hotel Chicago, IL 400 100% 2015 Loews Chicago O'Hare Hotel Chicago, IL 556 100% 2014 Loews Coronado Bay Resort* San Diego, CA 439 100% 2000 Loews Kansas
Slide 28: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 29: Altium Packaging
Altium Packaging Packaging company that serves stable consumer-oriented end markets COMPANY SNAPSHOT • Altium Packaging’s experienced management team brings a Leading North American manufacturer of rigid plastic packaging with 66 facilities across the strong track record of U.S. and Canada operation
Slide 30: Altium Packaging – Protecting the Environment
Altium Packaging – Protecting the Environment The disposal of plastic and its effects on our environment is an important topic Altium offers several environmentally innovative solutions to help minimize the impact of plastic on the environment and promote a circular economy Altium’s EcoPrime® resin
Slide 31: Altium Packaging – Rigid Packaging Overview
Altium Packaging – Rigid Packaging Overview • Focuses on short- and mid-run volumes • Covers a variety of attractive, recession-resistant, consumer-oriented focus segments Household Chemical Food / Nutrition Dairy 16% of Sales 15% of Sales 22% of Sales Industrial / Specialty Chemical Pharma Water /
Slide 32: Altium Packaging - Acquisitions with Attractive Post-Synergy Multiples
Altium Packaging - Acquisitions with Attractive Post- Synergy Multiples Diversification through acquisition Investment Outlook • Fragmented industry with tuck-in opportunities • Significant synergies from tuck-ins • Ability to self-fund tuck-in acquisitions • Attractive cash-on-cash returns • Strong
Slide 33: In Summary
In Summary Effective capital allocation Long-term Financial strength value creation Conservative management Loews Corporation │CNA │Boardwalk │ Hotels │ Altium 33
Slide 34: Appendix – Boardwalk EBITDA
Appendix – Boardwalk EBITDA Years Ended December 31 ($ millions) 2021 2020 2019 Pretax income $ 316 $ 290 $ 296 Depreciation and amortization 366 359 346 Interest expense 161 170 179 EBITDA $ 843 $ 819 $ 821 Financial results are at the subsidiary level. Loews Corporation │CNA │Boardwalk │ Hotels │
Slide 35: Appendix – Loews Hotels & Co Adjusted EBITDA
Appendix – Loews Hotels & Co Adjusted EBITDA Years Ended December 31 ($ millions) 2021 2020 2019 2018 2017 Consolidated GAAP pretax income (loss) $ (12) $ (274) $ (28) $ 73 $ 65 Non-recurring items1 (36) 13 110 2 (11) Pretax income (loss) excluding non- $ (48) $ (261) $ 82 $ 75 $ 54 recurring items