Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (December 2021)
32 slides from Icahn Enterprises L.p's investor presentation, Dec 29, 2021
Slide 1: Icahn Enterprises L.P. Investor Presentation December 2021
Icahn Enterprises L.P. Investor Presentation December 2021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
2 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
Slide 3: Company Overview
Company Overview 3
Slide 4: Overview of Icahn Enterprises
4 Overview of Icahn Enterprises (1) Including reinvestment of distributions into additional depositary units and taking into account in - kind distributions of depositary units. (2) Including reinvestment of distributions into those investments. (3) Investment segment total assets represents total e
Slide 5: Summary Corporate Organizational Chart
5 Summary Corporate Organizational Chart Note: Percentages denote equity ownership as of September 30, 2021. Excludes intermediary and pass - through entities. (1) We completed the sale of 100% of the equity interests in PSC Metals, LLC on December 7, 2021. CVR Energy , Inc. (NYSE: CVI) WestPoint Ho
Slide 6: Diversified Subsidiary Companies with Significant Inherent Value
6 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 .
Slide 7: Evolution of Icahn Enterprises
7 Evolution of Icahn Enterprises • IEP began as American Real Estate Partners, which was founded in 1987, and now has diversified its portfolio to seven operati ng segments and approximately $28 billion of assets as of September 30, 2021. • IEP has demonstrated a history of successfully acquiring un
Slide 8: Ability to Maximize Shareholder Value Through Proven Activist Strategy
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 change
Slide 9: Deep Team Led by Carl Icahn
9 Deep Team Led by Carl Icahn • Led by Carl Icahn • Substantial investing history provides IEP with a 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
Slide 10: Overview of Operating Segments
Overview of Operating Segments 10
Slide 11: Highlights and Recent Developments: Investment
Highlights and Recent Developments • Long history of investing in public equity and debt securities and pursuing activist agenda • Employs an activist strategy that seeks to unlock hidden value through various tactics • Financial/balance sheet restructurings (e.g., CIT Group, Apple) • Operational tu
Slide 12: Highlights and Recent Developments: Energy
Highlights and Recent Developments Petroleum • Strategic location and complex refineries allow CVR to benefit from access to price advantaged crude oil • Approximately 211k bpd of crude processing in Kansas and Oklahoma • Access to quality and price advantaged crude – 100% of crude purchased is WTI
Slide 13: Highlights and Recent Developments: Automotive
Highlights and Recent Developments • Icahn Automotive is implementing a multi - year plan to separate its aftermarket parts and automotive services businesses into two separate operating companies. Our Automotive segment's priorities include: • Positioning the services business to take advantage of
Slide 14: 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 • Developed markets remain a steady source of income. • Distribution channels to certain customers spanning more than
Slide 15: Highlights and Recent Developments: 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 furnaces drive scrap demand and are significantly more energy efficient than blast furnaces. • El
Slide 16: Highlights and Recent Developments: 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
Slide 17: 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 18: Highlights and Recent Developments: 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
20 Financial Performance Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises (1) ($Millions) Operating Segments: Energy $213 $246 ($194) ($44) Automotive (230) (197) (198) (188) Food Packaging (12) (17) 4 3 Metals 5 (22) - 29 Real Estate 112 16 (16)
Slide 21: Consolidated Financial Snapshot
21 Consolidated Financial Snapshot Net Income (Loss): Investment $679 ($1,543) ($1,447) ($1,937) $820 $1,310 Energy 334 314 (327) (236) 13 (78) Automotive (230) (197) (198) (149) (139) (188) Food Packaging (15) (22) 4 3 2 3 Metals 5 (22) - (10) 19 29 Real Estate 112 16 (16) (4) (5) (17) Home Fashion
Slide 22: Strong Balance Sheet
22 Strong Balance Sheet ASSETS Cash and cash equivalents $19 $566 $48 $10 $0 $30 $4 $11 $1,257 $1,945 Cash held at consolidated affiliated partnerships and restricted cash 1,636 7 19 - 1 9 - - 75 1,747 Investments 9,653 83 12 - - 15 - - 134 9,897 Accounts receivable, net - 240 112 88 90 12 35 21 - 5
Slide 23: IEP Summary Financial Information: Indicative Net Asset Value
23 IEP Summary Financial Information Company’s calculation of Indicative Net Asset Value : 12/31/2020 3/31/2021 6/30/2021 9/30/2021 Holding Company interest in Investment Funds (1) $4,283 $4,675 $4,743 $4,660 CVR Energy (2) 1,061 1,366 1,279 1,186 Tenneco (2) 292 136 - - Delek (2) - - 161 134 $5,636
Slide 24: IEP Summary Financial Information: Use of Indicative Net Asset Value Data
24 IEP Summary Financial Information Use of Indicative Net Asset Value Data The Company uses Indicative Net Asset Value as an additional method for considering the value of the Company’s assets, and we believe that this information is more indicative of value than our assets presented in accordance
Slide 25: Adjusted EBITDA Reconciliations
Adjusted EBITDA Reconciliations 25
Slide 26: Non-GAAP Financial Measures
26 Non - GAAP Financial Measures 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 27: Adjusted EBITDA Reconciliation by Segment – LTM September 30, 2021
27 Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended September 30, 2021 (1) Pharma segment results are for the period beginning December 11, 2020. Net income (loss) $1,310 ($78) ($188) $3 $29 ($17) ($14) $0 ($345) $700 Interest expense, net 221 116 10 6 1 - 1 - 321 676 Income tax
Slide 28: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2021
28 Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2021 Net income (loss) $820 $13 ($139) $2 $19 ($5) ($9) $1 ($376) $326 Interest expense, net 170 84 7 5 1 - 1 - 239 507 Income tax expense (benefit) - (13) (40) 5 - - - - 105 57 Depreciation, depletion and amortization -
Slide 29: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2020
29 Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2020 Net income (loss) ($1,937) ($236) ($149) $3 ($10) ($4) ($2) $0 ($507) ($2,842) Interest expense, net 145 89 9 10 1 - 1 - 246 501 Income tax expense (benefit) - (85) (39) 3 - - - - 3 (118) Depreciation, depletion and
Slide 30: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2020
30 Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2020 (1) Pharma segment results are for the period beginning December 11, 2020. 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 t
Slide 31: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019
31 Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019 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 32: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018
32 Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018 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
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