Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (November 2019)
30 slides from Icahn Enterprises L.p's investor presentation, Nov 8, 2019
Slide 1: Icahn Enterprises L.P. Investor Presentation November 2019
Icahn Enterprises L.P. Investor Presentation November 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 27A of the Securities Act of 1933, as amended, and Section 21E of the Secur
Slide 3: Company Overview
Company Overview 3
Slide 4: Overview of Icahn Enterprises
Overview of Icahn Enterprises ▪ Icahn Enterprises L.P. is a diversified holding company with operating segments in Investment, Energy, Automotive, Food Packaging, Metals, Real Estate, Home Fashion and Mining (until sold on August 1, 2019) ▪ IEP is majority owned and controlled by Carl Icahn – Over m
Slide 5: Summary Corporate Organizational Chart
Summary Corporate Organizational Chart Icahn Enterprises Icahn 1% Enterprises L.P. G.P. Inc. (NasdaqGS: IEP) 99% LP Interest Icahn 1% Enterprises Holdings L.P. Viskase 79% One of the worldwide leaders in cellulosic, fibrous and Companies Inc. plastic casings for processed meat industry (OTCPK:VKSC)
Slide 6: 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 7: Evolution of Icahn Enterprises
Evolution of Icahn Enterprises ▪ IEP began as American Real Estate Partners, which was founded in 1987, and now has now has diversified portfolio to seven operating segments and approximately $23 billion of assets as of September 30, 2019 ▪ IEP has demonstrated a history of successfully acquiring un
Slide 8: 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 9: 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 10: Overview of Operating Segments
Overview of Operating Segments 10
Slide 11: Segment: Investment
Segment: Investment Segment Description Highlights and Recent Developments ▪ IEP invests its proprietary capital through various ▪ Since inception in 2004 through September 30, 2019 the Investment Funds’ cumulative private investment funds (the “Investment Funds”) return was approximately 101.0%, re
Slide 12: Segment: Energy
Segment: Energy Segment Description Highlights and Recent Developments ▪ CVR Energy, Inc. (NYSE:CVI) is a diversified ▪ In January 2019, CVR Energy purchased the remaining common units of CVR holding company primarily engaged in the Refining not already owned by CVR Energy for $241 million, excludin
Slide 13: Segment: Automotive
Segment: Automotive Segment Description Highlights and Recent Developments ▪ We conduct our Automotive segment through our ▪ In October 2018, IEP sold Federal-Mogul, which was previously reported in our wholly owned subsidiary Icahn Automotive Group Automotive segment. IEP is reporting Federal-Mogul
Slide 14: Segment: Food Packaging
Segment: Food Packaging Segment 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 worldwide leader in the production and sale of in emerging markets cellulosic, fibrous and plast
Slide 15: Segment: Metals
Segment: Metals Segment Description Highlights and Recent Developments ▪ PSC Metals, Inc. is one of the largest independent ▪ Increasing global demand for steel and other metals drives demand for U.S. metal recycling companies in the U.S. scrap ▪ Collects industrial and obsolete scrap metal, ▪ Scrap
Slide 16: Segment: Real Estate
Segment: Real Estate Segment Description Highlights and Recent Developments ▪ Consists of rental real estate, property development and ▪ Business strategy is based on long-term investment outlook and operational expertise club operations ▪ Rental real estate consists primarily of retail, office and
Slide 17: Segment: Home Fashion
Segment: Home Fashion Segment Description Highlights and Recent Developments ▪ WestPoint Home LLC is engaged in manufacturing, ▪ One of the largest providers of home textile goods in the United States sourcing, marketing, distributing and selling home fashion consumer products ▪ Transitioned majorit
Slide 18: Financial Performance
Financial Performance 18
Slide 19: Financial Performance
Financial Performance Net Income (Loss) Attributable to Adjusted EBITDA Attributable to Icahn Enterprises Icahn Enterprises $2,430 $642 $561 $1,507 $61 $14 $(1,128) $(677) FYE 2016 FYE 2017 FYE 2018 LTM 9/30/19 FYE 2016 FYE 2017 FYE 2018 LTM 9/30/19 LTM LTM FYE December 31, September 30, FYE Decembe
Slide 20: Consolidated Financial Snapshot
Consolidated Financial Snapshot LTM FYE December 31, Nine Months Ended September 30, September 30, ($Millions) 2016 2017 2018 2018 2019 2019 Net income (loss): Investment ($1,487) $118 $679 $266 ($1,564) ($1,151) Energy (604) 275 379 236 298 441 Automotive 19 (51) (230) (65) (128) (293) Food Packagi
Slide 21: Strong Balance Sheet
Strong Balance Sheet As of September 30, 2019 Food Home Holding ($Millions) Investment Energy Automotive Packaging Metals Real Estate Fashion Company Consolidated Assets Cash and cash equivalents $9 $692 $48 $18 $3 $40 $3 $2,453 $3,266 Cash held at consolidated affiliated partnerships and restricted
Slide 22: IEP Summary Financial Information
IEP Summary Financial Information ($ Millions) ▪ Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and book value or market comparables of other assets As of ($Millions) 9/30/2018 12/31/2018 3/31/2019 6/30/2019 9/30/2019 Market-valu
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 23
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company uses certain non-GAAP financial measures in evaluating its performance. These include non-GAAP EBITDA and Adjusted EBITDA. EBITDA represents earnings from continuing operations before interest expense, income tax (benefit) expense and depreciation and amortiza
Slide 25: Adjusted EBITDA Reconciliation by Segment – LTM September 30, 2019
Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended September 30, 2019 Food Home Holding ($Millions) Investment Energy Automotive Packaging Metals Real Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) ($1,151) $441 ($293) ($16) ($16) $34 ($14) $31
Slide 26: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2019
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2019 Food Home Holding ($Millions) Investment Energy Automotive Packaging Metals Real Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) ($1,564) $298 ($128) ($16) ($13) $9 ($13) $311 $— ($4
Slide 27: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2018
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2018 Food Home Holding ($Millions) Investment Energy Automotive Packaging Metals Real Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) $266 $236 ($65) ($15) $8 $87 ($10) $2 $1 ($67) $443 I
Slide 28: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018 Food Home Holding ($Millions) Investment Energy Automotive Packaging Metals Real Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) $679 $379 ($230) ($15) $5 $112 ($11) $1 $1 ($639) $282 Intere
Slide 29: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017 Food Home Holding ($Millions) Investment Energy Automotive Packaging Metals Real Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) $118 $275 ($51) ($6) ($44) $549 ($20) $10 $1,171 $355 $2,357
Slide 30: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016 Food Home Holding ($Millions) Investment Energy Automotive Packaging Metals Real Estate Fashion Mining Railcar Company Consolidated Adjusted EBITDA Net income (loss) ($1,487) ($604) $19 $8 ($20) $5 ($12) ($24) $117 ($287) ($2,2
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