Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Debt Investor Presentation (December 2019)
36 slides from Icahn Enterprises L.p's debt investor presentation, Dec 9, 2019
Slide 1: Icahn Enterprises L.P. Roadshow Presentation December 2019
Icahn Enterprises L.P. Roadshow Presentation December 2019
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: Presenters
Presenters Keith Cozza – President & Chief Executive Officer SungHwan Cho – Chief Financial Officer 3
Slide 4: Agenda
Agenda Transaction Overview Company Overview Investment Highlights Financial Performance Appendix 4
Slide 5: Transaction Overview
Transaction Overview
Slide 6: Executive Summary
Executive Summary Icahn Enterprises L.P. (“IEP” or the “Company”) is a diversified holding company, with global businesses in Investment, Energy, Automotive, Food Packaging, Metals, Real Estate and Home Fashion – Total equity market capitalization of approximately $13.0 (1) billion as of December
Slide 7: Capitalization and Credit Statistics
Capitalization and Credit Statistics Key Points Strong pro forma financial metrics (1) : – Total consolidated liquidity of $8.4 billion – Indicative gross asset value to holding company net debt coverage of 3.9x Holding Company cash and cash equivalents value of $3.3 billion (1) Affiliates of
Slide 8: Summary of Terms
Summary of Terms Issuers Icahn Enterprises L.P. (“IEP” or the “Company”) and Icahn Enterprises Finance Corp. Issue $500 million of Senior Notes (the “Notes”) Maturity Date May 15, 2027 Optional Redemption Non - callable for life (IEP may redeem all or a part of the notes at par plus accrued and unpa
Slide 9: Company Overview
Company Overview
Slide 10: Overview of Icahn Enterprises
Overview of Icahn Enterprises 10 (1) Investment segment total assets represents total equity (equity attributable to IEP was $4.3 billion). (2) Excludes discontinued operations. (2) ▪ Icahn Enterprises L.P. is a diversified holding company with operating segments in Investment, Energy, Automotive, F
Slide 11: Summary Corporate Organizational Chart
71% Summary Corporate Organizational Chart 11 Note: Percentages denote equity ownership as of November 1, 2019. Excludes intermediary and pass through entities. CVR Energy Inc. (NYSE: CVI) WestPoint Home LLC PSC Metals LLC AREP Real Estate Holdings, LLC Icahn Enterprises G.P. Inc. Icahn Enterprises
Slide 12: Deep Management Team Led by Carl Icahn
Deep Management Team Led by Carl Icahn 12 (2) ▪ 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
Slide 13: Investment Highlights
Investment Highlights
Slide 14: Investment Highlights
Investment Highlights Diversified Holdings History of Successfully Monetizing Investments Diversification Across Industries and Geographies Proves a Natural Hedge Against Cyclical and General Economic Swings Significant Asset Coverage Liquidity Serves as a Competitive Advantage 14 1 2 3 4
Slide 15: Diversified Holdings
Diversified Holdings Asset Mix by Operating Segments for Icahn Enterprises (1)(2) : 41% 30% 21% 4% 2% 1% 1% The Company is well diversified across various industries and sectors Note: As of September 30, 2019. (1) Indicative gross asset value defined as market value of public subsidiaries, market
Slide 16: History of Successfully Monetizing Investments
History of Successfully Monetizing Investments 16 Sold American Railcar Leasing, LLC (“ARL”) during 2017 for $3.4 billion including assumption of debt, resulting in cash proceeds to IEP of $1.8 billion. IEP acquired ARL in 2013 for total consideration of approximately $772 million August 2017 sa
Slide 17: Segment: Investment
Segment: Investment 17 (1) Balance Sheet data as of the end of each respective fiscal period. (2) Aggregate ownership held directly by the Investment Funds, as well as Carl Icahn and his affiliates. Based on most recent 13F ho ldings reports, 13D flings or other publicly available information. (3) B
Slide 18: Segment: Energy
Segment: Energy 18 3 Highlights and Recent Developments ▪ In January 2019, CVR Energy purchased the remaining common units of CVR Refining not already owned by CVR Energy for $241 million, excluding the amount paid to us. As a result: – CVR Energy and its affiliates own 100% of CVR Refining’s outsta
Slide 19: Segment: Automotive
Segment: Automotive 19 3 Segment Description ▪ Automotive segment operates through our wholly owned subsidiary Icahn Automotive Group LLC ("Icahn Automotive") ▪ Icahn Automotive is engaged in the retail and wholesale distribution of automotive parts in the aftermarket as well as providing automotive
Slide 20: Segment: Food Packaging
Segment: Food Packaging 20 3 Highlights and Recent Developments ▪ Future growth expected to be driven by changing diets of a growing middle class in emerging markets – Majority of revenues from emerging markets – Acquired a plastic casing manufacturer in Poland in December 2016 and a fibrous casing
Slide 21: Segment: Metals
Segment: Metals 21 3 Highlights and Recent Developments ▪ Increasing global demand for steel and other metals drives demand for U.S. scrap ▪ Scrap recycling process is “greener” than virgin steel production – Electric arc furnace drive scrap demand and are significantly more energy efficient than bl
Slide 22: Segment: Real Estate
Segment: Real Estate 22 AREP Real Estate Holdings, LLC 3 Highlights and Recent Developments ▪ Business strategy is based on long - term investment outlook and operational expertise Rental Real Estate Operations ▪ Maximize value of commercial lease portfolio through effective management of existing p
Slide 23: Segment: Home Fashion
Segment: Home Fashion 23 3 Highlights and Recent Developments ▪ One of the largest providers of home textile goods in the United States ▪ Transitioned majority of manufacturing to low cost plants overseas ▪ Streamlined merchandising, sales and customer service divisions ▪ Focus on core profitable cu
Slide 24: Significant Asset Coverage
Significant Asset Coverage 24 4 ($ m illions) ▪ Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Investment Funds and book value or market comparables of other assets Note: Indicative net asset value does not purport to reflect a valuati
Slide 25: Liquidity Serves as a Competitive Advantage
Liquidity Serves as a Competitive Advantage 25 Our operating subsidiaries and the Holding Company maintain ample liquidity to take advantage of attractive opportunities for th eir respective businesses – Recent successful realizations have generated significant proceeds and further bolstered liqui
Slide 26: Financial Performance
Financial Performance
Slide 27: Financial Performance
Financial Performance 27 Net (loss) Income Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises ($1,128) $2,430 $1,507 $14 2016 2017 2018 LTM 9/30/2019 $61 $642 $561 ($677) 2016 2017 2018 LTM 9/30/2019 FYE December 31, LTM September 30, ($ m illions ) 2016 2017 2018 20
Slide 28: Balance Sheet
Balance Sheet 28 As of September 30, 2019 ($ m illions) Investment Energy Automotive Food Packaging Metals Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $9 $692 $48 $18 $3 $40 $3 $2,453 $3,266 Cash held at consolidated affiliated partnerships and restricted c
Slide 29: Appendix
Appendix 29
Slide 30: Evolution of Icahn Enterprises
Evolution of Icahn Enterprises 30 (1) Based on closing stock price of $61.61 and approximately 211.7 million depositary and general partner equivalent units as of December 6, 2019. ▪ IEP began as American Real Estate Partners, which was founded in 1987, and now has now has diversified portfolio to s
Slide 31: EBITDA Reconciliation
EBITDA Reconciliation 31
Slide 32: Non-GAAP Financial Measures
Non - GAAP Financial Measures 32 The Company uses certain non - GAAP financial measures in evaluating its performance . These include non - GAAP EBITDA and Adjusted EBITDA . EBITDA represents earnings from continuing operations before interest expense, income tax (benefit) expense and depreciation a
Slide 33: Adj. EBITDA Reconciliation by Segment – Twelve Months Ended September 30, 2019
Adj. EBITDA Reconciliation by Segment – Twelve Months Ended September 30, 2019 33 ($ m illions ) Investment Energy Automotive Food Packaging Metals Real Estate Home Fashion Mining Railcar Holding Company Consolidated Adjusted EBITDA Net income (loss) ($1,151) $441 ($293) ($16) ($16) $34 ($14) $310 $
Slide 34: Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2018
Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2018 34 ($ m illions ) Investment Energy Automotive Food Packaging Metals Real Estate Home Fashion Mining Railcar Holding Company Consolidated Adjusted EBITDA Net income (loss) $679 $379 ($230) ($15) $5 $112 ($11) $1 $1 ($639) $2
Slide 35: Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2017
Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2017 35 ($ m illions ) Investment Energy Automotive Food Packaging Metals Real Estate Home Fashion Mining Railcar Holding Company Consolidated Adjusted EBITDA Net income (loss) $118 $275 ($51) ($6) ($44) $549 ($20) $10 $1,171 $35
Slide 36: Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2016
Adj. EBITDA Reconciliation by Segment – Fiscal Year Ended December 31, 2016 36 ($ m illions ) Investment Energy Automotive Food Packaging Metals Real Estate Home Fashion Mining Railcar Holding Company Consolidated Adjusted EBITDA Net income (loss) ($1,487) ($604) $19 $8 ($20) $5 ($12) ($24) $117 ($2
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