Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (November 2017)
37 slides from Icahn Enterprises L.p's investor presentation, Nov 28, 2017
Slide 1: Icahn Enterprises L.P. Investor Presentation November 2017
Icahn Enterprises L.P. Investor Presentation November 2017
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 $33 billion of assets as of September 30, 2017 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and enh
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: Federal-Mogul Separation and CVR MLP
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: Highlights and Recent Developments: Investment Segment
Highlights and Recent Developments Since inception in 2004 through September 30, 2017, the Investment Funds’ cumulative return was approximately 130.0%, representing an annualized rate of return of approximately 6.7% Long history of investing in public equity and debt securities and pursuing activis
Slide 13: Highlights and Recent Developments: Energy Segment
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 $2.00
Slide 14: CVR Refining, LP
Gasoline 50.6% Distillate 41.5% Other 7.9% 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 ─ Access to mid - continent local and Canadian crude oils ─ Markets its products in a s
Slide 15: CVR Partners, LP
CVR Partners, LP (NYSE:UAN) On April 1, 2016, CVR Partners acquired an East Dubuque, IL fertilizer plant ─ Acquisition provides geographic and feed stock diversity Attractive market dynamics for nitrogen fertilizer ─ Global fertilizer demand has historically increased in - line with population and i
Slide 16: 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 Jac
Slide 17: Federal-Mogul Corp.'s Leading Market Position
Federal - Mogul Corp.’s Leading Market Position 17 Powertrain Motorparts Product Line Market Position (1) Product Line Market Position (1) Pistons #1 in diesel pistons #2 a cross all pistons Engine #1 Global Rings & Liners Market leader Sealing Components #1 Global Valve Seats and Guides Market lead
Slide 18: Highlights and Recent Developments: Railcar Segment
Highlights and Recent Developments The initial sale of ARL to SMBC Rail closed on June 1, 2017 ─ Received approximately $1.3 billion in cash resulting in a pre - tax gain of $1.5 billion for the first nine months ending September 30, 2017 ─ In October 2017, we sold an additional 4,382 railcars to SM
Slide 19: Highlights and Recent Developments: Gaming Segment
Highlights and Recent Developments In August 2017, Tropicana repurchased shares of its common stock aggregating $36 million and IEP purchased shares of Tropicana common stock aggregating $95 million in connection with a combined tender offer commenced by IEP and Tropicana Segment: Gaming Company Des
Slide 20: Highlights and Recent Developments: Food Packaging Segment
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 21: Highlights and Recent Developments: Metals Segment
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 22: Highlights and Recent Developments: Real Estate Segment
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 2020 – 2021 ─ 12 legac
Slide 23: Highlights and Recent Developments: Mining Segment
Highlights and Recent Developments IEP acquired a controlling interest in Ferrous Resources in June 2015 through a tender offer to purchase any and all of the outstanding shares. ─ Prior to the tender offer, IEP owned 14% of the company’s outstanding common stock and as of September 30, 2017 owned 7
Slide 24: Highlights and Recent Developments: Home Fashion Segment
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 25: Financial Performance
Financial Performance 25
Slide 26: Financial Performance
Financial Performance Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises 26 ($373) ($1,194) ($1,128) $1,926 FYE 2014 FYE 2015 FYE 2016 LTM 9/30/17 $1,018 $930 $837 $1,640 FYE 2014 FYE 2015 FYE 2016 LTM 9/30/17 ($Millions) LTM September 30, LTM Septe
Slide 27: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 27 LTM September 30, 2014 2015 2016 2017 Net Income (Loss): Investment ($684) ($1,665) ($1,487) ($75) Automotive (90) (352) 77 543 Energy 168 7 (604) (1) Metals (25) (51) (20) (3) Railcar 188 213 183 1,134 Gaming 269 38 (95) 64 Mining - (195) (24) 7 Food P
Slide 28: Strong Balance Sheet
Strong Balance Sheet ($Millions) 28 InvestmentAutomotive Energy Railcar Gaming Metals Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $17 $366 $849 $106 $125 $14 $17 $18 $41 $1 $484 $2,038 Cash held at consolidated affiliated partnerships
Slide 29: IEP Summary Financial Information
IEP Summary Financial Information Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and boo k v alue or market comparables of other assets 29 ($ Millions) Note: Indicative net asset value does not purport to reflect a valuation of I
Slide 30: Appendix — Adjusted EBITDA Reconciliations
Appendix — Adjusted EBITDA Reconciliations 30
Slide 31: Non-GAAP Financial Measures
Non - GAAP Financial Measures 31 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 32: Adjusted EBITDA Reconciliation by Segment – LTM September 30, 2017
Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended September 30, 2017 ($Millions) 32 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($75) $543 ($1) ($3) $1,134 $64 $7
Slide 33: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2017
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2017 ($Millions) 33 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $440 $569 $15 $4 $1,074 $90 $10 $8 $469 ($
Slide 34: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2016
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2016 ($Millions) 34 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($972) $103 ($588) ($13) $123 ($69) ($21)
Slide 35: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016 ($Millions) 35 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($1,487) $77 ($604) ($20) $183 ($95) ($24) $8 $12
Slide 36: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015 ($Millions) 36 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) $61
Slide 37: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014 ($Millions) 37 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($684) ($90) $168 ($25) $188 $269 $9 $22 $2 ($388) ($529)
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