Slide 1: Icahn Enterprises L.P. Investor Presentation August 2014
Icahn Enterprises L.P. Investor Presentation August 2014
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-LookingStatements Thispresentationcontainscertainstatementsthatare,ormaybedeemedtobe,“forward-lookingstatements”withinthemeaningofSection27Aofthe SecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended.
Slide 3: Investment Highlights: IEP stock performance has outpaced all its peers
Investment Highlights IEP stock performance has meaningfully outpaced all its peers 3 (1) April 1, 2009 is the approximate beginning of the economic recovery. Source: Bloomberg. Includes reinvestment of distributions. Based on the share price as of July 31, 2014. Time Period IEP Berkshire Leucadia L
Slide 4: Investment Highlights: never a better time for activist investing
Investment Highlights 4 Mr. Icahn believes there has never a better time for activist investing, if practiced properly, than today. – 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 ric
Slide 5: 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 &Dodd tradition, a methodology for valuing stocks that primarily looks for deeply depressed prices. However, while the typical Graham & Dodd value investor p
Slide 6: 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 than incumbent management. In addition, through our Investment segment, we are in a position to pursue our activist strategy by purchasing stock o
Slide 7: Company Overview
Company Overview 7
Slide 8: 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, Railcar, Food Packaging, Metals, Real Estate and Home Fashion IEP is majority owned and controlled by Carl Icahn – Over the last several years, Car
Slide 9: Summary Corporate Organizational Chart
67% 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 Ent
Slide 10: 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 11: 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 nine operating segments and approximately $39 billion of assets as of June 30, 2014 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and enhancin
Slide 12: Ability to Maximize Shareholder Value Through Proven Activist Strategy
IEP seeks undervalued companies and often becomes “actively” involved in the targeted companies Activist strategy requires significant capital, rapid execution and willingness to take control of companies Implement changes required to improve businesses Ability to Maximize Shareholder Value Through
Slide 13: Situation Overview: Federal-Mogul and CVR restructuring
Situation Overview Historically, two businesses had a natural synergy - Motorparts benefitted from OEM pedigree and scale Review of business identified numerous dis-synergies by having both under one business - Different customers, methods of distribution, cost structures, engineeringand R&D, and ca
Slide 14: Deep Team Led by Carl Icahn
Deep Team Led by Carl Icahn Led by Carl Icahn - Substantial investing history provides IEP with unique network of relationships and access to Wall Street Team consists of approximately 20 professionals with diverse backgrounds - Well rounded team with professionals focusing on different areas such a
Slide 15: Overview of Operating Segments
Overview of Operating Segments 15
Slide 16: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments Since inception in November 2004, the Funds' gross return is approximately 293%, representing an annualized rate of return of 15% through June 30, 2014 Long history of investing in public equity and debt securities and pursuing activist agenda Employs an activist s
Slide 17: Significant Holdings
Significant Holdings As of June 30,2014 (4) As of December 31, 2013 (4) As of December 31, 2012 (4) Company Mkt. Value ($mm) (5) % Ownership (6) Company Mkt. Value ($mm) (5) % Ownership (6) Company Mkt. Value ($mm) (5) % Ownership (6) $4,903 0.9% $2,654 0.5% $1,083 11.5% $3,036 11.3% $1,841 11.4% $9
Slide 18: Energy Segment: Highlights and Recent Developments
Highlights and Recent Developments Crude supply advantages supported by increasing North American crude oil production, decreasing North Sea production, transportation bottlenecks and geopolitical concerns - Strategic location allows CVR to benefit from access to price advantaged crude oil CVR Partn
Slide 19: CVR Refining, LP
Gasoline 48.7% Distillate 41.9% Other 9.4% 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 crude
Slide 20: 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 ~62% of fertilizer consumption - Nitrogen fertilizers must be applied annually, creat
Slide 21: Segment: Automotive
Segment: Automotive Company Description Federal Mogul Holdings Corporation (NASDAQ:FDML) operates in two business segments: Powertrain and Motorparts - Powertrain focuses on original equipment powertrain products for automotive, heavy duty and industrial applications - Motorparts sells and distribut
Slide 22: Federal-Mogul Leading Market Positions
Powertrain Segment Motorparts Segment ProductLine Market Position ProductLine Market Position Pistons #1 in diesel pistons #2acrossall pistons Engine Global #1 Rings& Liners Market leader SealingComponents Global#1 in Gaskets ValveSeats and Guides Market leader Brake Pads / Components Global #1 Bear
Slide 23: Segment: Railcar Highlights and Recent Developments
Highlights and Recent Developments Railcar manufacturing remains strong - Approximately 9,530 railcar backlog as of June 30, 2014 - Tank demand from increasing crude oil production from shale oil - Covered hopper car demand from increasing industrial manufacturing base in United States due to lower
Slide 24: Segment: Gaming 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 customerneeds - Utilize sophisticated custome
Slide 25: Segment: Food Packaging 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 - Emerging market sales are approximately 50% of global sales in 2013 compared to 36% in 2007 - In 2012, Viskase completed a new finishing center in the Philippines
Slide 26: Segment: Metals Highlights and Recent Developments
Highlights and Recent Developments NAFTA steel demand growth is forecasted to be 3.1% in 2014 (1) Increasing global demand for steel and other metals drives demand for U.S. scrap exports PSC is in attractive regional markets - $1.8 billion of steel capacity additions in PSC’s geographic area includi
Slide 27: Segment: Real Estate 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 $100 billion market cap, A-credit) for two large buildings with leases through 2020 –2021 - 29 addi
Slide 28: Segment: Home Fashion 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: Adjusted EBITDA and Equity
Financial Performance Adjusted EBITDA Attributable to Icahn Enterprises Equity Attributable to Icahn Enterprises 30 $1,541 $1,546 $1,896 $2,240 FYE 2011 FYE 2012 FYE 2013 LTM 2014 $3,755 $4,669 $6,092 $6,631 As of 12/31/11 As of 12/31/12 As of 12/31/13 As of 6/30/14 LTM June 30, As of June 30, ($ in
Slide 31: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 31 LTM June 30, 2011 2012 2013 2014 Revenues: Investment 1,896$ 398$ 2,031$ 2,843$ Automotive 6,937 6,677 6,876 7,043 Energy - 5,519 9,063 9,515 Metals 1,096 1,103 929 812 Railcar 691 799 744 787 Gaming 624 611 571 669 Food Packaging 338 341 346 355 Real E
Slide 32: Strong Balance Sheet
Strong Balance Sheet ($Millions) 32
Slide 33: IEP Summary Financial Information
IEP Summary Financial Information Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and book value or market comparables of other assets 33 ($ 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 – Twelve Months Ended June 30, 2014
Adjusted EBITDA Reconciliation by Segment –Twelve Months Ended June 30, 2014 ($Millions) 35 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $ 2,544 $ 270 $ 334 $ (25) $ 160 $ 38 $ 57 $ 22 $ (11
Slide 36: Adjusted EBITDA Reconciliation by Segment – Twelve Months Ended December 31, 2013
Adjusted EBITDA Reconciliation by Segment –Twelve Months Ended December 31, 2013 ($Millions) 36 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $ 1,902 $ 263 $ 479 $ (28) $ 139 $ 19 $ 43 $ 17 $
Slide 37: Adjusted EBITDA Reconciliation by Segment – Twelve Months Ended December 31, 2012
Adjusted EBITDA Reconciliation by Segment –Twelve Months Ended December 31, 2012 ($Millions) 37 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $ 372 $ (22) $ 338 $ (58) $ 92 $ 30 $ 6 $ 19 $ (2
Slide 38: Adjusted EBITDA Reconciliation by Segment – Twelve Months Ended December 31, 2011
Adjusted EBITDA Reconciliation by Segment –Twelve Months Ended December 31, 2011 ($Millions) 38 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $ 1,830 $ 168 $ - $ 6 $ 40 $ 24 $ 6 $ 18 $ (66) $
Slide 39: Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2014
Adjusted EBITDA Reconciliation by Segment –Six Months Ended June 30, 2014 ($Millions) 39 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $ 1,035 $ 29 $ 339 $ (10) $ 83 $ 39 $ - $ 13 $ (1) $ (32
Slide 40: Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2013
Adjusted EBITDA Reconciliation by Segment –Six Months Ended June 30, 2013 ($Millions) 40 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $ 393 $ 22 $ 484 $ (13) $ 62 $ 20 $ (14) $ 8 $ (6) $ (15
Slide 41: Adjusted net income attributable to Icahn Enterprises reconciliation
Adjusted net income attributable to Icahn Enterprises reconciliation 41 ($ in millions) 2014 2013 2014 2013 Net income attributable to Icahn Enterprises 489$ 54$ 460$ 331$ Loss (gain) on extinguishment of debt attributable to Icahn Enterprises 31 - 152 (3) Adjusted net income attributable to Icahn E