Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Debt Investor Presentation (January 2021)
38 slides from Icahn Enterprises L.p's debt investor presentation, Jan 4, 2021
Slide 1: Icahn Enterprises L.P. Investor Presentation January 2021
Icahn Enterprises L.P. Investor Presentation January 2021
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
Keith Cozza – President & Chief Executive Officer SungHwan Cho – Chief Financial Officer Presenters 3
Slide 4: Agenda
Agenda 4 • Transaction Overview • Company Overview • Investment Highlights • Financial Performance • Appendix
Slide 5: Transaction Overview
Transaction Overview ICAHN ENTERPRISES. 5
Slide 6: Executive Summary
Executive Summary 6 • Icahn Enterprises L.P. (“IEP” or the “Company”) is a diversified Holding Company, with global businesses in Investment, Automotive, Energy, Real Estate, Food Packaging, Metals, and Home Fashion ‒ Total equity market capitalization of approximately $12.4 billion (1) as of Decemb
Slide 7: Capitalization and Credit Statistics
Capitalization and Credit Statistics 7 (1) Gives effect to (i) the issuance of the Notes offered hereby and the use of the net proceeds therefrom, (ii) Viskase’s $100 million equity private placement and debt refinancing completed in October 2020 and (iii) the sale of the maximum aggregate offering
Slide 8: Summary of Terms
Summary of Terms 8 Issuers Icahn Enterprises L.P. (“IEP” or the “Company”) and Icahn Enterprises Finance Corp. Issue $500.0 million of Senior Unsecured Notes (the “Notes”) Term 8 years Optional Redemption Non - callable for life until six months prior to maturity at par Placement Type 144A and Regul
Slide 9: Company Overview
Company Overview ICAHN ENTERPRISES. Py
Slide 10: Overview of Icahn Enterprises
Overview of Icahn Enterprises • Icahn Enterprises L.P. is a diversified H olding C ompany with operating segments in Investment, Energy, Automotive, Food Packaging, Metals, Real Estate and Home Fashion • IEP is majority owned and controlled by Carl Icahn ‒ Over many years, Carl Icahn has contributed
Slide 11: Summary Corporate Organizational Chart
CVR Energy Inc. (NYSE: CVI) Summary Corporate Organizational Chart WestPoint Home LLC (“WPH”) PSC Metals LLC AREP Real Estate Holdings, LLC Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprises Holdings L.P. Icahn Capital LP Viskase Companies Inc. (OTCPK:VKSC) As of 9/
Slide 12: Investment Highlights
Investment Highlights ICAHN ENTERPRISES. 2
Slide 13: Investment Highlights
• Diversified Holdings • History of Successfully Monetizing Investments • Diversification Across Industries and Geographies Proves a Natural Hedge Against Cyclical and General Economic Swings • Significant Asset Coverage • Liquidity Serves as a Competitive Advantage • Deep Management Team Led by Car
Slide 14: Diversified Holdings
Diversified Holdings 14 1 • The Company is well diversified across various industries and sectors Asset Mix by Operating Segments for Icahn Enterprises (1)(2) Note: As of September 30, 2020. Market valued subsidiaries based on closing share price and the number of shares owned by the Ho lding Compan
Slide 15: History of Successfully Monetizing Investments
History of Successfully Monetizing Investments 15 2 • Sold American Railcar Leasing, LLC (“ARL”) during 2017 for $3.4 billion including assumption of debt, resulting in cash proceeds to IEP of $1.8 billion. IEP acquired ARL in 2013 for total consideration of approximately $772 million • August 2017
Slide 16: Historical Segment Financial Summary: Investment
Historical Segment Financial Summary ($Millions) Selected Income Statement Data: Total revenue $297 $737 ($1,414) ($1,719) Adjusted EBITDA 284 725 (1,437) (1,731) Net income (loss) 118 679 (1,543) (1,916) Adjusted EBITDA attributable to IEP $138 $339 ($723) ($892) Net income (loss) attributable to I
Slide 17: Segment: Energy
Segment: Energy Segment Description • CVR Energy, Inc. (NYSE:CVI) is a diversified Holding Company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing businesses through its interests in CVR Refining, LP and CVR Partners, LP (NYSE:UAN) ‒ CVR Refining is an independent p
Slide 18: Segment: Automotive
Segment: Automotive Segment Description • We conduct our Automotive segment through our wholly owned subsidiary Icahn Automotive Group LLC ("Icahn Automotive") • Icahn Automotive is engaged in the retail and wholesale distribution of automotive parts in the aftermarket as well as providing automotiv
Slide 19: Segment: 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 5
Slide 20: Segment: 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 furnace s drive scrap demand and are significantly more energy efficient than blast furnaces ‒ Elec
Slide 21: Segment: Real Estate
Highlights and Recent Developments • Business strategy is based on long - term investment outlook and operational expertise Rental Real Estate Operations • Maximize value of commercial lease portfolio through effective management of existing properties ‒ Seek to sell assets on opportunistic basis Pr
Slide 22: Segment: 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 23: Significant Asset Coverage
Significant Asset Coverage 23 • Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and boo k value or market comparable of other assets Note: Indicative net asset value does not purport to reflect a valuation of Icahn Enterprises. Th
Slide 24: Liquidity Serves as a Competitive Advantage
Liquidity Serves as a Competitive Advantage • Our operating subsidiaries and the Holding Company maintain ample liquidity to take advantage of attractive opportunities for their respective businesses 24 5 Create table as of 9/30 (1) Gives effect to (i) the issuance of the Notes offered hereby and th
Slide 25: Deep Management Team Led by Carl Icahn
Deep Management 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 professionals with diverse backgrounds ‒ Well rounded team with professionals focusing on different areas such as
Slide 26: Financial Performance
Financial Performance ICAHN ENTERPRISES. 28
Slide 27: Consolidated Financial Snapshot
Consolidated Financial Snapshot 27 Net Income (Loss): Investment $118 $679 ($1,543) ($1,564) ($1,937) ($1,916) Energy 316 334 314 298 (236) (220) Automotive (51) (230) (197) (128) (149) (218) Food Packaging (6) (15) (22) (16) 3 (3) Metals (44) 5 (22) (13) (10) (19) Real Estate 549 112 16 9 (4) 3 Hom
Slide 28: Strong Balance Sheet
Strong Balance Sheet 28 ASSETS Cash and cash equivalents $13 $672 $55 $12 $2 $18 $3 $1,087 $1,862 Cash held at consolidated affiliated partnerships and restricted cash 2,650 7 - 1 2 9 5 13 2,687 Investments 6,177 199 60 - - 15 - 459 6,910 Accounts receivable, net - 133 108 95 54 13 40 - 443 Inventor
Slide 29: Appendix
Appendix ICAHN ENTERPRISES. LP. 29
Slide 30: IEP history and track record
• IEP began as American Real Estate Partners, which was founded in 1987, and now has diversified its portfolio to seven operating segments and approximately $2 3 billion of assets as of September 30, 2020 • IEP has demonstrated a history of successfully acquiring undervalued assets and improving and
Slide 31: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 31
Slide 32: Non-GAAP Financial Measures
Non - GAAP Financial Measures 32 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 33: Adjusted EBITDA Reconciliation by Segment – LTM September 30, 2020
Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended September 30, 2020 33 Net income (loss) ($1,916) ($220) ($218) ($3) ($19) $3 ($6) $0 $0 ($612) ($2,991) Interest expense, net 185 114 14 15 1 - 1 - - 321 651 Income tax expense (benefit) - (71) (58) 7 - (5) - - - 41 (86) Depreciati
Slide 34: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2020
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2020 34 Net income (loss) ($1,937) ($236) ($149) $3 ($10) ($4) ($2) $0 $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 amo
Slide 35: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2019
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2019 35 Net income (loss) ($1,564) $298 ($128) ($16) ($13) $9 ($13) $311 $0 ($494) ($1,610) Interest expense, net 66 77 15 12 1 (1) 1 3 - 221 395 Income tax expense (benefit) - 98 (36) 2 - (1) - 1 - (76) (12) Depreciation, d
Slide 36: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 9 36 Net income (loss) ($1,543) $314 ($197) ($22) ($22) $16 ($17) $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, deplet
Slide 37: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 8 37 Net income (loss) $679 $334 ($230) ($15) $5 $112 ($11) $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 amorti
Slide 38: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 7 38 Net income (loss) $118 $316 ($51) ($6) ($44) $549 ($20) $10 $1,171 $355 $2,398 Interest expense, net 166 109 13 13 - 2 - 5 23 319 650 Income tax expense (benefit) - (341) (146) 21 43 - - 3 531 (643) (532) Depreciation, depl
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