Slide 1: Icahn Enterprises L.P. Investor Presentation August 2016
Icahn Enterprises L.P. Investor Presentation August 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) The Chairman of the Board of our general partner, Carl C. Icahn, has been an activist investor since 1980. Mr. Icahn believes th at the current environment continues to be conducive to activism. Many major companies have substantial amounts of cash. We believe that the
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 track record of acquiring undervalued assets
IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to ten operating segments and approximately $33 billion of assets as of June 30, 2016 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and enhancing
Slide 11: Proven Activist Strategy to Maximize Shareholder Value
IEP seeks undervalued companies and often becomes “actively” involved in the targeted companies Activist strategy requires significant capital, rapid execution and willingness to take control of companies Implement changes required to improve businesses Ability to Maximize Shareholder Value Through
Slide 12: Situation Overview: Federal-Mogul separation and CVR Refining MLP
Situation Overview Historically, two businesses had a natural synergy ─ Motorparts benefitted from OEM pedigree and scale Review of business identified numerous dis - synergies by having both under one business ─ Different customers, methods of distribution, cost structures, engineering and R&D, and
Slide 13: Deep Team Led by Carl Icahn
Deep Team Led by Carl Icahn Led by Carl Icahn ─ Substantial investing history provides IEP with unique network of relationships and access to Wall Street Team consists of approximately 20 professionals with diverse backgrounds ─ Well rounded team with professionals focusing on different areas such a
Slide 14: Overview of Operating Segments
Overview of Operating Segments 14
Slide 15: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments Since inception in 2004 through June 30, 2016, the Investment Funds’ cumulative return was approximately 122%, representing an annualized rate of return of approximately 7% Long history of investing in public equity and debt securities and pursuing activist agenda
Slide 16: Significant Holdings
Significant Holdings As of June 30 , 2016 (4) As of December 31, 2015 (4) As of December 31, 2014 (4) Company Mkt. Value ($mm) (5) % Ownership (6) Company Mkt. Value ($mm) (5) % Ownership (6) Company Mkt. Value ($mm) (5) % Ownership (6) $2,414 4.1% $4,817 0.8% $5,824 0.9% $1,238 2.8% $2,618 3.4% $2,
Slide 17: Energy Segment: Highlights and Recent Developments
Highlights and Recent Developments Strategic location and complex refineries allows CVR to benefit from access to price advantaged crude oil CVR Partners acquired an additional fertilizer plant in April 2016, giving it geographic and feed stock diversity CVR Energy has annualized dividends of $2.00
Slide 18: CVR Refining, LP
Gasoline 52.7% Distillate 40.5% Other 6.8% 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 mid - continent local and Canadian crude oils ─ Market
Slide 19: CVR Partners, LP
CVR Partners, LP (NYSE:UAN ) On April 1, 2016, CVR Partners acquired an East Dubuque, IL fertilizer plant ─ Acquisition provides geographic and feed stock diversity Attractive market dynamics for nitrogen fertilizer ─ Global fertilizer demand has historically increased in - line with population and
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 subsidiaries, Pep Boys and IEH Auto Parts Holding Federal - Mogul operates with two end - customer focused businesse
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 ─ 5,601 railcar backlog as of June 30, 2016 ─ Tank railcar demand impacted by volatile crude oil prices ─ New tank railcar design requirements released in May 2015 Growing railcar leasing business provides stability ─ In Q1 2016
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 ─ Established measurable, property specific, customer service goals and objectives to meet customer needs ─ Utilize sophisticated custom
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 ─ Approximately 50% of revenues from emerging markets Deve
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 Rental Real Estate Operations Net lease portfolio overview ─ Single tenant (Over $100bn market cap, A - credit) for two large buildings with leases through 2020 – 2021 ─ 13 legac
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 June 30, 2016 owned 77%
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 Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises 30 $1,025 ($373) ($1,194) ($2,473) FYE 2013 FYE 2014 FYE 2015 LTM 6/30/16 $1,899 $1,018 $929 ($44) FYE 2013 FYE 2014 FYE 2015 LTM 6/30/16 ($Millions) LTM June 30, LTM June 30,
Slide 31: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 31 LTM June 30, 2013 2014 2015 2016 Net Income (Loss): Investment $1,902 ($684) ($1,665) ($3,777) Automotive 263 (90) (352) (292) Energy 479 168 7 (831) Metals (28) (25) (51) (44) Railcar 139 188 213 215 Gaming 19 269 38 36 Mining 0 0 (195) (207) Food Pack
Slide 32: Strong Balance Sheet
Strong Balance Sheet ($Millions) 32 InvestmentAutomotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $13 $345 $691 $1 $337 $248 $19 $36 $16 $3 $211 $1,920 Cash held at consolidated affiliated partnershipsan
Slide 33: IEP Summary Financial Information
IEP Summary Financial Information Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and book value or market comparables of other assets 33 ($ Millions) Note: Indicative net asset value does not purport to reflect a valuation of IEP
Slide 34: Appendix — Adjusted EBITDA Reconciliations
Appendix — Adjusted EBITDA Reconciliations 34
Slide 35: Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2016
Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2016 ($Millions) 35 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($1,334) $70 ($580) ($7) $102 $14 ($18) $6 $9 ($
Slide 36: Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2015
Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2015 ($Millions) 36 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $778 $10 $258 ($14) $100 $16 ($6) $6 $31 ($2) ($
Slide 37: Adjusted EBITDA Reconciliation by Segment – LTM Ended June 30, 2016
Adjusted EBITDA Reconciliation by Segment – LTM Ended June 30, 2016 ($Millions) 37 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($3,777) ($292) ($831) ($44) $215 $36 ($207) ($3) $39 (
Slide 38: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015 ($Millions) 38 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) ($3)
Slide 39: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014 ($Millions) 39 Investment Automotive Energy Metals Railcar 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) ($529)
Slide 40: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2013
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2013 ($Millions) 40 Investment Automotive Energy Metals Railcar (1) Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $1,902 $263 $479 ($28) $139 $19 $43 $17 ($16) ($374)