Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (March 2018)
31 slides from Icahn Enterprises L.p's investor presentation, Mar 23, 2018
Slide 1: Icahn Enterprises L.P. Investor Presentation March 2018
Icahn Enterprises L.P. Investor Presentation March 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, C
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 $32 billion of assets as of December 31, 2017 ; IEP has demonstrated a history of successfully acquiring undervalued assets and improving and
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: 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,
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 su
Slide 11: Overview of Operating Segments
Overview of Operating Segments 11
Slide 12: Segment: Investment – Highlights and Recent Developments
Highlights and Recent Developments ; Since inception in 2004 through December 31, 2017, the Investment Funds’ cumulative return was approximately 121.0%, representing an annualized rate of return of approximately 6.2% ; Long history of investing in public equity and debt securities and pursuing acti
Slide 13: Segment: Energy – 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
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"), which is the parent company of IEH Auto Parts Holding LLC and The Pep Boys - Manny, Moe and J
Slide 15: Segment: Railcar – Highlights and Recent Developments
Highlights and Recent Developments ; Sold American Railcar Leasing for $3.4 billion in 2017 ; Railcar manufacturing ─ Railcar shipments for the three months ended December 31, 2017 of 1,102 railcars, including 382 railcars to leasing customers ─ Tank railcar demand impacted by volatile crude oil pri
Slide 16: Segment: Gaming – Highlights and Recent Developments
Highlights and Recent Developments ; In August 2017, Tropicana repurchased $36 million of its common stock and IEP purchased $95 million of Tropicana common stock Segment: Gaming Company Description ; We conduct our Gaming segment through our majority ownership in Tropicana Entertainment and Trump E
Slide 17: 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 ─ 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 18: Segment: Metals – 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 prod
Slide 19: 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 $200bn market cap, A - credit) for two large buildings with leases through 2021 – 2030 ─ 10 l
Slide 20: Segment: Mining – Highlights and Recent Developments
Highlights and Recent Developments ; IEP acquired a controlling interest in Ferrous Resources in June 2015 ─ IEP owns 77% of the common stock Segment: Mining Company Description ; Ferrous Resources has rights to certain iron ore mineral resources in Brazil and develops mining operations and related
Slide 21: Segment: Home Fashion – 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 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 FYE 2015 FYE 2016 FYE 2017 $928 $842 $1,665 FYE 2015 FYE 2016 FYE 2017 ($Millions) ($ in millions) 2015 2016 2017 ($ in millions) 2015 2016 2017 Net
Slide 24: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 24 2015 2016 2017 Net Income (Loss): Investment ($1,665) ($1,487) $118 Automotive (352) 77 626 Energy 7 (604) 275 Metals (51) (20) (44) Railcar 213 183 1,267 Gaming 38 (95) 52 Mining (195) (24) 10 Food Packaging (3) 8 (6) Real Estate 61 12 519 Home Fashion
Slide 25: Strong Balance Sheet
Strong Balance Sheet ($Millions) 25 InvestmentAutomotive Energy Railcar Gaming Metals Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $17 $367 $482 $100 $105 $24 $15 $16 $30 $0 $526 $1,682 Cash held at consolidated affiliated partnerships
Slide 26: IEP Summary Financial Information
IEP Summary Financial Information ; Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and boo k v alue or market comparables of other assets 26 ($ Millions) Note: Indicative net asset value does not purport to reflect a valuation of
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 – Year Ended December 31, 2017
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017 ($Millions) 29 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 ($20
Slide 30: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016 ($Millions) 30 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 $12
Slide 31: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015 ($Millions) 31 Investment Automotive Energy Metals Railcar 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) $61
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