Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (May 2020)
30 slides from Icahn Enterprises L.p's investor presentation, May 15, 2020
Slide 1: Icahn Enterprises L.P. Investor Presentation May 2020
Icahn Enterprises L.P. Investor Presentation May 2020
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, Energy, Automotive, Food Packa gin g, Metals, Real Estate and Home Fashion • IEP is majority owned and controlled by Carl Icahn ◦ Over many years, Carl Icahn has contributed
Slide 5: Summary Corporate Organizational Chart
CVR Energy Inc. (NYSE: CVI) Summary Corporate Organizational Chart WestPoint Home LLC PSC Metals LLC AREP Real Estate Holdings, LLC Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprises Holdings L.P. 1% 1% 99% LP Interest 79% 71% Icahn Capital LP Viskase Companies Inc.
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 200 year heritage with some of the best known brands in home fashion; consolidation likely i
Slide 7: IEP history and track record of acquisitions and sales
• IEP began as American Real Estate Partners, which was founded in 1987, and now has now has diversified portfolio to seven ope rat ing segments and approximately $2 4 billion of assets as of March 31, 2020 • IEP has demonstrated a history of successfully acquiring undervalued assets and improving a
Slide 8: 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 Th
Slide 9: 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 15 professionals with diverse backgrounds – Well rounded team with professionals focusing on different areas such as equity,
Slide 10: Overview of Operating Segments
Overview of Operating Segments 10
Slide 11: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments • Since inception in 2004 through March 31, 2020 the Investment Funds’ cumulative return was approximately 66.1 %, representing an annualized rate of return of approximately 3.3 % • Long history of investing in public equity and debt securities and pursuing activis
Slide 12: Energy Segment: Highlights and Recent Developments
Highlights and Recent Developments ▪ Announced Q1 2020 cash dividend of $0.40 per share ▪ During Q1 2020, CVR Energy issued $600 million in aggregate principal amount of 5.25% senior unsecured notes due 2025 and $400 million in aggregate principal amount of 5.75% senior unsecured notes due 2028 ◦ Re
Slide 13: Automotive Segment: Highlights and Recent Developments
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 14: 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
Slide 15: Metals Segment: Highlights and Recent Developments
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 drive scrap demand and are significantly more energy efficient than blast furnaces ◦ Electr
Slide 16: 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 • Maximize value of commercial lease portfolio through effective management of existing properties ◦ Seek to sell assets on opportunistic basis Pr
Slide 17: 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 ◦
Slide 18: Financial Performance
Financial Performance 18
Slide 19: Financial Performance
Financial Performance 19 Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises $2,454 $1,482 ($1,098) ($2,088) FYE 2017 FYE 2018 FYE 2019 LTM 3/31/20 $641 $557 ($462) ($1,571) FYE 2017 FYE 2018 FYE 2019 LTM 3/31/20 ($Millions) Investment $80 $319 ($775
Slide 20: Consolidated Financial Snapshot
Consolidated Financial Snapshot 20 Net Income (Loss): Investment $118 $679 ($1,543) ($1,802) ($588) ($2,757) Energy 316 334 314 (113) 90 111 Automotive (51) (230) (197) (73) (42) (228) Food Packaging (6) (15) (22) (4) (5) (21) Metals (44) 5 (22) (3) (3) (22) Real Estate 549 112 16 1 4 13 Home Fashio
Slide 21: Strong Balance Sheet
Strong Balance Sheet 21 ASSETS Cash and cash equivalents $12 $805 $51 $13 $1 $56 $3 $1,440 $2,381 Cash held at consolidated affiliated partnerships and restricted cash 851 - - 1 6 2 8 8 876 Investments 7,519 249 120 - - 15 - 294 8,197 Accounts receivable, net - 149 138 84 51 12 38 - 472 Inventories,
Slide 22: IEP Summary Financial Information
IEP Summary Financial Information 22 • 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 Note: Indicative net asset value does not purport to reflect a valuation of IEP. The calcu
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 23
Slide 24: Non-GAAP Financial Measures
Non - GAAP Financial Measures 24 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 25: Adjusted EBITDA Reconciliation by Segment – LTM March 31, 2020
Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended March 31, 2020 25 Net income (loss) ($2,757) $111 ($228) ($21) ($22) $13 ($15) $305 $0 ($787) ($3,401) Interest expense, net 131 103 20 17 1 (1) 1 2 - 307 581 Income tax expense (benefit) - 41 (62) 11 - (6) - - - (150) (166) Deprec
Slide 26: Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2020
Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2020 26 Net income (loss) ($1,802) ($113) ($73) ($4) ($3) $1 ($2) $0 $0 ($310) ($2,306) Interest expense, net 43 27 5 4 - - - - - 83 162 Income tax expense (benefit) - (40) (19) 1 - - - - - (122) (180) Depreciation, depletion a
Slide 27: Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2019
Adjusted EBITDA Reconciliation by Segment – Three Months Ended March 31, 2019 27 Net income (loss) ($588) $90 ($42) ($5) ($3) $4 ($4) $6 $0 ($122) ($664) Interest expense, net 18 26 5 4 - - - 1 - 72 126 Income tax expense (benefit) - 31 (12) (4) - - - 1 - (10) 6 Depreciation, depletion and amortizat
Slide 28: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 9 28 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 29: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 8 29 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 30: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 7 30 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