Slide 1: Icahn Enterprises L.P. Investor Presentation April 2016
Icahn Enterprises L.P. Investor Presentation April 2016
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: Investment Highlights
Investment Highlights 3 Mr. Icahn believes that the current environment continues to be conducive to activism – Several factors are responsible for this: 1) low interest rates, which make acquisitions much less costly and therefore much more attractive, 2) abundance of cash rich companies that would
Slide 4: The Icahn Strategy
The Icahn Strategy Across all of our businesses, our success is based on a simple formula: we seek to find undervalued companies in the Graham & Do dd tradition, a methodology for valuing stocks that primarily looks for deeply depressed prices. However, while the typical Graham & Dodd value investor
Slide 5: The Icahn Strategy (continued)
The Icahn Strategy (continued) Unlike the individual investor, we have the wherewithal to purchase companies that we feel we can operate more effectively th an incumbent management. In addition, through our Investment segment, we are in a position to pursue our activist strategy by purchasing stock
Slide 6: Company Overview
Company Overview 6
Slide 7: 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 the last several
Slide 8: 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 Holdings Corp. (NasdaqGS:FDML) Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn E
Slide 9: 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 share leader in each of its principal product categories with a long history o
Slide 10: IEP history and diversified portfolio of ten operating segments
IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to ten operating segments and approximately $36 billion of assets as of December 31, 2015 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and enhan
Slide 11: Maximize Shareholder Value Through Proven Activist Strategy
IEP seeks undervalued companies and often becomes “actively” involved in the targeted companies Activist strategy requires significant capital, rapid execution and willingness to take control of companies Implement changes required to improve businesses Ability to Maximize Shareholder Value Through
Slide 12: Situation Overview: Federal-Mogul / CVR Refining separation
Situation Overview Historically, two businesses had a natural synergy ─ Motorparts benefitted from OEM pedigree and scale Review of business identified numerous dis - synergies by having both under one business ─ Different customers, methods of distribution, cost structures, engineering and R&D, and
Slide 13: Deep Team Led by Carl Icahn
Deep Team Led by Carl Icahn Led by Carl Icahn ─ Substantial investing history provides IEP with unique network of relationships and access to Wall Street Team consists of approximately 20 professionals with diverse backgrounds ─ Well rounded team with professionals focusing on different areas such a
Slide 14: Overview of Operating Segments
Overview of Operating Segments 14
Slide 15: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments Since inception in 2004 through December 31, 2015, the Investment Funds’ cumulative return was approximately 171%, representing an annualized rate of return of approximately 9% Long history of investing in public equity and debt securities and pursuing activist age
Slide 16: Significant Holdings
Significant Holdings As of December 31 , 2015 (3) As of December 31, 2014 (3) As of December 31, 2013 (3) Company Mkt. Value ($mm) (4) % Ownership (5) Company Mkt. Value ($mm) (4) % Ownership (5) Company Mkt. Value ($mm) (4) % Ownership (5) $4,817 0.8% $5,824 0.9% $2,654 0.5% $2,618 3.4% $2,597 3.7%
Slide 17: Energy Segment: Highlights and Recent Developments
Highlights and Recent Developments Crude supply advantages supported by increasing North American crude oil production, transportation bottlenecks and geopolitical concerns ─ Strategic location allows CVR to benefit from access to price advantaged crude oil CVR Partners expansion of UAN capacity com
Slide 18: CVR Refining, LP
Gasoline 48.5% Distillate 41.7% Other 9.8% CVR Refining, LP (NYSE:CVRR ) Two PADD II Group 3 refineries with combined capacity of 185,000 barrels per day The Company enjoys advantages that enhance the crack spread ─ Has access to and can process price - advantaged mid - continent local and Canadian
Slide 19: CVR Partners, LP
CVR Partners, LP (NYSE:UAN ) Attractive market dynamics for nitrogen fertilizer ─ Decreasing world farmland per capita ─ Increasing demand for corn (largest use of nitrogen fertilizer) and meat ─ Nitrogen represents ~61% of fertilizer consumption ─ Nitrogen fertilizers must be applied annually, crea
Slide 20: Segment: Automotive
Segment: Automotive Company Description We conduct our Automotive segment through our majority ownership in Federal - Mogul Holdings Corporation ( NasdaqGS:FDML ) and our wholly owned subsidiary, IEH Auto Parts Holding LLC Federal - Mogul Holdings Corporation operates in two business segments: Power
Slide 21: Federal-Mogul Corp.'s Leading Market Position
Federal - Mogul Corp.’s Leading Market Position 21 Powertrain Motorparts Product Line Market Position Product Line Market Position Pistons #1 in diesel pistons #2 a cross all pistons Engine #1 Global Rings & Liners Market leader Sealing Components #1 Global in Gaskets Valve Seats and Guides Market l
Slide 22: Railcar Segment: Highlights and Recent Developments
Highlights and Recent Developments Railcar manufacturing remains strong ─ 7,080 railcar backlog as of December 31, 2015 ─ Tank railcar demand impacted by volatile crude oil prices ─ New tank railcar design requirements released in May 2015 Growing railcar leasing business provides stability ─ Acquir
Slide 23: Gaming Segment: Highlights and Recent Developments
Highlights and Recent Developments Management uses a highly analytical approach to enhance marketing, improve utilization, optimize product mix and reduce expenses ─ Increased Adjusted EBITDA by approximately 97% since 2011 (2) ─ Established measurable, property specific, customer service goals and
Slide 24: Food Packaging Segment: Highlights and Recent Developments
Highlights and Recent Developments Future growth expected to be driven by changing diets of a growing middle class in emerging markets ─ In 2012, Viskase completed a new finishing center in the Philippines and expanded its capacity in Brazil ─ Over 50% of revenues from emerging markets Developed mar
Slide 25: Metals Segment: Highlights and Recent Developments
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 production
Slide 26: Real Estate Segment: Highlights and Recent Developments
Highlights and Recent Developments Business strategy is based on long - term investment outlook and operational expertise Approximately $39 million gain from sale of 14 rental properties and Oak Harbor during the year ended December 31, 2015 Rental Real Estate Operations Net lease portfolio overview
Slide 27: Mining Segment: Highlights and Recent Developments
Highlights and Recent Developments IEP acquired a controlling interest in Ferrous Resources on June 8, 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 December 31, 2015 owned
Slide 28: Home Fashion Segment: Highlights and Recent Developments
Highlights and Recent Developments One of the largest providers of home textile goods in the United States Largely completed restructuring of manufacturing footprint ─ Transitioned majority of manufacturing to low cost plants overseas Streamlined merchandising, sales and customer service divisions F
Slide 29: Financial Performance
Financial Performance 29
Slide 30: Financial Performance
Financial Performance Adjusted EBITDA Attributable to Icahn Enterprises Equity Attributable to Icahn Enterprises 30 $2,020 $1,072 $984 FYE 2013 FYE 2014 FYE 2015 $6,206 $5,197 $3,735 As of 12/31/13 As of 12/31/14 As of 12/31/15 ($ in millions) 2013 2014 2015 ($ in millions) 2013 2014 2015 Adjusted E
Slide 31: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 31 (1) Restated for 25% common control acquisition of ARL which occurred in 2016 2013 2014 2015 Revenues: Investment $2,031 ($218) ($865) Automotive 6,876 7,324 7,853 Energy 9,063 9,292 5,442 Metals 929 711 365 Railcar 744 809 948 Gaming 571 849 811 Mining
Slide 32: Strong Balance Sheet
Strong Balance Sheet ($Millions) 32 InvestmentAutomotive Energy Metals Railcar (1) Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $10 $201 $765 $12 $623 $217 $14 $37 $19 $14 $166 $2,078 Cash held at consolidated affiliated partners
Slide 33: IEP Summary Financial Information
IEP Summary Financial Information Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and book value or market comparables of other assets 33 ($ Millions) Note: Indicative net asset value does not purport to reflect a valuation of IEP
Slide 34: Appendix — Adjusted EBITDA & Adjusted Net Income Reconciliations
Appendix — Adjusted EBITDA & Adjusted Net Income Reconciliations 34
Slide 35: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015 ($Millions) 35 Investment Automotive Energy Metals Railcar (1) Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($1,665) ($352) $7 ($51) $213 $38 ($195) ($3)
Slide 36: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014 ($Millions) 36 Investment Automotive Energy Metals Railcar (1) Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($684) ($90) $168 ($25) $188 $269 $9 $22 $2 ($388) ($
Slide 37: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2013
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2013 ($Millions) 37 (1) Restated for 25% common control acquisition of ARL which occurred in 2016 Investment Automotive Energy Metals Railcar (1) Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted E
Slide 38: Adjusted net income attributable to Icahn Enterprises reconciliation
Adjusted net income attributable to Icahn Enterprises reconciliation 38 ($ in millions) 2015 2014 Net loss attributable to Icahn Enterprises (1) ($1,175) ($351) Loss on extinguishment of debt attributable to Icahn Enterprises 1 152 Adjusted net loss attributable to Icahn Enterprises ($1,174) ($199)