Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (June 2018)
34 slides from Icahn Enterprises L.p's investor presentation, Jun 8, 2018
Slide 1: Icahn Enterprises L.P. Investor Presentation June 2018
Icahn Enterprises L.P. Investor Presentation June 2018
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: 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, 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 many years, Carl
Slide 5: 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 LLC Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprises Holdings L.P. 1%
Slide 6: 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 leader in each of its principal product categories with a long history of qual
Slide 7: 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 operati ng segments and approximately $30 billion of assets as of March 31, 2018 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and enhanci
Slide 8: 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 9: Situation Overview
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 10: 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 11: Overview of Operating Segments
Overview of Operating Segments 11
Slide 12: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments Since inception in 2004 through March 31, 2018, the Investment Funds’ cumulative return was approximately 132.0%, representing an annualized rate of return of approximately 6.5% Long history of investing in public equity and debt securities and pursuing activist ag
Slide 13: 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 increased dividend to an annualize
Slide 14: Segment: Automotive
Segment: Automotive Company Description We conduct our Automotive segment through our wholly owned subsidiaries Federal - Mogul LLC ("Federal - Mogul") and Icahn Automotive Group LLC ("Icahn Automotive") Federal - Mogul is engaged in the manufacture and distribution of automotive parts Icahn Automot
Slide 15: Railcar Segment: Highlights and Recent Developments
Highlights and Recent Developments Sold American Railcar Leasing for $3.4 billion in 2017 Railcar manufacturing ─ Tank railcar demand impacted by volatile crude oil prices Approximately 13,100 railcars (2) in ARI’s lease fleet provide stable cash flows ARI annualized dividend is $1.60 per share Segm
Slide 16: Gaming Segment: Highlights and Recent Developments
Highlights and Recent Developments On April 16, 2018, IEP announced agreements to sell Tropicana's real estate to Gaming and Leisure Properties, Inc. and to merge Tropicana's gaming and hotel operations into Eldorado Resorts, Inc. in a transaction valued at approximately $1.85 billion Segment: Gamin
Slide 17: 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 ─ Majority of revenues from emerging markets ─ Acquired a plastic casing manufacturer in Poland in December 2016 and a fibrous casing manufacturer in January 2017 De
Slide 18: 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 19: 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 one lease through 2021 and the other
Slide 20: Mining Segment: Highlights and Recent Developments
Highlights and Recent Developments IEP acquired a controlling interest in Ferrous Resources in June 2015 Mining segment has been concentrating on sales in Brazil, where the best margins are being captured Iron ore prices have recovered significantly due to increased demand from China Segment: Mining
Slide 21: Home Fashion Segment: Highlights and Recent Developments
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 ─ WPH has
Slide 22: Financial Performance
Financial Performance 22
Slide 23: Financial Performance
Financial Performance Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises 23 ($1,194) ($1,128) $2,430 $2,585 FYE 2015 FYE 2016 FYE 2017 LTM 3/31/18 $956 $865 $1,690 $1,820 FYE 2015 FYE 2016 FYE 2017 LTM 3/31/18 ($Millions) LTM March 31, LTM March 31,
Slide 24: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 24 LTM March 31, 2015 2016 2017 2017 2018 2018 Net Income (Loss): Investment ($1,665) ($1,487) $118 ($192) $401 $711 Automotive (352) 77 626 30 (12) 584 Energy 7 (604) 275 28 92 339 Metals (51) (20) (44) 2 4 (42) Railcar 213 183 1,267 52 16 1,231 Gaming 38
Slide 25: Strong Balance Sheet
Strong Balance Sheet ($Millions) 25 InvestmentAutomotive Energy Railcar Gaming Metals Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $20 $278 $420 $100 $119 $17 $13 $54 $29 $1 $199 $1,250 Cash held at consolidated affiliated partnerships
Slide 26: IEP Summary Financial Information
IEP Summary Financial Information Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and boo k v alue or market comparables of other assets 26 ($ Millions) Note: Indicative net asset value does not purport to reflect a valuation of I
Slide 27: Appendix — Adjusted EBITDA Reconciliations
Appendix — Adjusted EBITDA Reconciliations 27
Slide 28: Non-GAAP Financial Measures
Non - GAAP Financial Measures 28 The Company uses certain non - GAAP financial measures in evaluating its performance . These include non - GAAP EBITDA and Adjusted EBITDA . EBITDA represents earnings before interest expense, income tax (benefit) expense and depreciation and amortization . We define
Slide 29: Adjusted EBITDA Reconciliation by Segment – LTM March 31, 2018
Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended March 31, 2018 ($Millions) 29 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $711 $584 $339 ($42) $1,231 $75 ($2) ($
Slide 30: Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2018
Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2018 ($Millions) 30 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $401 ($12) $92 $4 $16 $19 ($6) ($3) $9 ($5) (
Slide 31: Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2017
Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2017 ($Millions) 31 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net (loss) income ($192) $30 $28 $2 $52 ($4) $6 $2 $2 ($3) ($83
Slide 32: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017 ($Millions) 32 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $118 $626 $275 ($44) $1,267 $52 $10 ($6) $519 ($20
Slide 33: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016 ($Millions) 33 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net (loss) income ($1,487) $77 ($604) ($20) $183 ($95) ($24) $8 $12
Slide 34: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015 ($Millions) 34 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net (loss) income ($1,665) ($352) $7 ($51) $213 $38 ($195) ($3) $61
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