Loews Corporation · NYSE:L
Loews — Investor Presentation (August 2021)
34 slides from Loews's investor presentation, August 2021
Slide 1: Company Overview
COMPANY OVERVIEW August 2021
Slide 2: Legal Disclaimers
Legal Disclaimers Forward Looking Statements and Risk Factors. The information presented herein is generally available from public sources, including our and our subsidiaries’ earnings releases and SEC filings. We urge you to read those documents, and we specifically direct you to the forward-lookin
Slide 3: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 4: Corporate Structure
Corporate Structure $7.6 billion Property & Net Earned Premiums Publicly 89.6% Casualty Traded Ownership $12.0 billion Insurance Market Cap Long-term view, Natural Gas & NGL Midstream 100% Ownership $819 million EBITDA1 diversified $3.9 billion Cash portfolio, one & Investments class of stock $2.3 b
Slide 5: The Loews Discount
The Loews Discount Loews’s market cap is less than its sum-of-the-parts. CNA trades at a discount to its peers and the market seems to assign little value to the private subsidiaries. $10.7 billion Market Trades at earnings and Value of Loews’s Stake BV discount to peers + Net Cash -- $1.6 billion $
Slide 6: Debt Maturity Profile
Debt Maturity Profile Staggered long-term debt maturities $500 ($ millions) $500 $500 $500 $300 2.63% 3.75% 3.20% 6.00% 4.13% Notes 2.63% 2.63% Notes 3.75% 3.75% 3.20% Notes Notes 6.00% 6.00% 4.13% 4.13% Notes Senior Senior Senior Senior Senior Senior Senior Senior Senior Notes Notes Notes Notes Not
Slide 7: Loews Capital Allocation Approach
Loews Capital Allocation Approach • Maintain a strong balance sheet • Evaluate capital deployment opportunities based on risk-adjusted returns • Continually balance the uses of Loews capital 1 2 3 Repurchase Invest in existing Acquire a new Loews shares subsidiaries subsidiary Loews Corporation │CNA
Slide 8: Share Repurchases
Share Repurchases 400 392 387 373 Since year-end 350 2012, we have (millions) 340 retired nearly 34% 337 332 of our common shares 300 312 outstanding 291 260 269 250 2012 2013 2014 2015 2016 2017 2018 2019 2020 6/30/21 Shares Repurchased 6 5 15 33 3 5 20 22 22 9 (millions) Total Cost $212 $228 $622
Slide 9: Net Investment Income and Dividends Paid to Loews
Net Investment Income and Dividends Paid to Loews $1,200 $1,156 Dividends from 229 $1,006 Subsidiaries1 $1,000 $950 59 $926 $877 $876 $868 $838 146 22 146 Corporate $800 141 94 $744 Net Invest. 61 $636 ($ millions) Income2 $600 70 927 947 878 $400 782 816 780 804 683 736 566 $200 $0 (10) 2012 20
Slide 10: Loews's 12-month Cash Roll Forward
Loews’s 12-month Cash Roll Forward ($ millions) 1. Received gross cash proceeds of $420 million from the sale of 47% of Altium Packaging. Loews Corporation │CNA │Boardwalk │ Hotels │ Altium 10
Slide 11: Loews's Net Cash Since 2019
Loews’s Net Cash Since 2019 ($ billions) $3.9 $3.5 $3.3 $2.3 $2.3 $1.8 $1.5 $1.6 $1.2 12/31/19 12/31/20 6/30/21 Cash & Investments Total Debt Cash & Investments (Net of Debt) Loews Corporation │CNA │Boardwalk │ Hotels │ Altium 11
Slide 12: Loews is a Long-Term Partner
Working with Our Subsidiaries While each subsidiary’s experienced management team guides day-to-day operations, Loews provides advice in several areas: Major capital Mid- to long-term Hiring of senior allocation decisions strategic planning management Loews is a Long-Term Partner Loews Corporation │
Slide 13: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 14: CNA Financial
CNA Financial Company Snapshot • One of the largest U.S. commercial property and casualty insurance companies • Provides a broad range of standard and specialized property and casualty insurance products and services SPECIALTY COMMERCIAL INTERNATIONAL LIFE & GROUP Financial lines, Property & casualt
Slide 15: CNA – Strategic Direction
CNA – Strategic Direction Continues to make significant progress Underlying Combined Ratio1 towards their goal of growing P&C P&C Operations underwriting profits on a sustained basis • An underwriting focused culture • Strong expertise across underwriting, risk control, claim and actuarial 93.2% • D
Slide 16: Disciplined Capital Management
Disciplined Capital Management Excellent capitalization with prudent $15.5 $15.4 $16 $14.9 leverage and modest corporate obligations $1,200 Regular Dividend $14 • $12.7 billion of GAAP equity, $2.8 billion of debt, Special Dividend and statutory surplus of $10.9 billion as of June 30, $1,000 Total C
Slide 17: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 18: Boardwalk Pipelines
Boardwalk Pipelines Company Snapshot Boardwalk Strategy • Predominantly transport and store natural gas and liquids with minimal exposure to commodity price volatility • Stable demand pull from mostly high credit quality Strengthen Financial Enhance Existing Identify Strategic Operate Safely & custo
Slide 19: Three Areas of Focus
Three Areas of Focus Natural Gas and Natural Gas Natural Gas Liquids Liquids Storage Transportation Transportation Facilities • Boardwalk has 13,650 miles of • 445 miles of ethylene, ethane, • Natural gas storage facilities are interconnected natural gas propane and propylene pipeline comprised of 1
Slide 20: Flexible Financial Position
Flexible Financial Position Substantial Backlog Strong Liquidity • Over $9 billion of firm contract backlog • Boardwalk expects to fund its 2021 capital spending from operating cash flows • Approximately 75% of future contracted revenues are with investment grade customers • Committed to achieving i
Slide 21: Key Growth Projects Recently Completed & Under Construction
Key Growth Projects Recently Completed & Under Construction Collectively, these growth projects represent ~$500 million in capital and Power Plant in Indiana ~1.5 Bcf/d of firm natural gas Capacity: 220,000 MMBtu/d In service: February 2024 transportation capacity and additional NGL infrastructure.
Slide 22: Environmental, Social and Governance Highlights
Environmental, Social and Governance Highlights Environment Social Governance Environmental Stewardship Commitment to Safety and Security Strong Governance Structure • Focused on reducing greenhouse emissions • Safety is a Core Value of Boardwalk, guiding daily • Boardwalk is committed to ethical bu
Slide 23: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 24: Loews Hotels & Co
Loews Hotels & Co System-wide Guest Rooms Company Snapshot With an additional 242 rooms • Owned, joint venture and managed hotels currently under development 16,565 16,445 in the U.S. and Canada 13,796 • Unique, local experience • Focused on developing hotels with built-in demand drivers • Significa
Slide 25: Loews Hotels & Co – Key Operating Metrics
Loews Hotels & Co – Key Operating Metrics Loews Hotels & Co is focused on profitable growth over the long term • Loews Hotels & Co and the travel and tourism industry have been significantly impacted by the COVID-19 pandemic • Looking beyond the current difficult environment, the company's growth st
Slide 26: Loews Hotels & Co – Portfolio
Loews Hotels & Co – Portfolio Ownership - Ops Commenced / As of June 30, 2021 Location Rooms Ownership %1 Managed Only OWNED (10) Loews Chicago Hotel Chicago, IL 400 100% 2015 Loews Chicago O'Hare Hotel Chicago, IL 556 100% 2014 Loews Coronado Bay Resort* San Diego, CA 439 100% 2000 Loews Kansas Cit
Slide 27: Roadmap: Loews Corporation
Roadmap Loews Corporation • Diversified holding company operating in the insurance, energy, hospitality and packaging industries. Subsidiaries include: • CNA Financial: property & casualty insurance • Boardwalk Pipelines: transportation and storage of natural gas and liquids • Loews Hotels & Co: hot
Slide 28: Altium Packaging
Altium Packaging Packaging company that serves stable consumer-oriented end markets COMPANY SNAPSHOT • Altium Packaging’s experienced management team brings a Leading North American manufacturer of rigid plastic packaging with 66 facilities across the strong track record of U.S. and Canada operation
Slide 29: Altium Packaging – Protecting the Environment
Altium Packaging – Protecting the Environment The disposal of plastic and its effects on our environment is an important topic, and one that Loews and Altium take very seriously. Altium offers several environmentally innovative solutions to help minimize the impact of plastic on the environment and
Slide 30: Altium Packaging – Rigid Packaging Overview
Altium Packaging – Rigid Packaging Overview • Focus on short- and mid-run volumes • Cover a variety of attractive, recession-resistant, consumer-oriented focus segments Household Chemical Food / Nutrition Dairy 16% of Sales 13% of Sales 23% of Sales Industrial / Specialty Chemical Pharma Water / Oth
Slide 31: Altium Packaging - Acquisitions with Attractive Post-Synergy Multiples
Altium Packaging - Acquisitions with Attractive Post- Synergy Multiples Diversification through acquisition Investment Outlook • Fragmented industry with tuck-in opportunities • Significant synergies from tuck-ins • Ability to self-fund tuck-in acquisitions • Attractive cash-on-cash returns • Strong
Slide 32: In Summary
In Summary Effective capital allocation Long-term Financial strength value creation Conservative management Loews Corporation │CNA │Boardwalk │ Hotels │ Altium 32
Slide 33: Appendix – Boardwalk EBITDA
Appendix – Boardwalk EBITDA Years Ended December 31 ($ millions) 2020 2019 2018 Pretax income $ 290 $ 296 $ 241 Depreciation and amortization 359 346 345 Interest expense 170 179 175 EBITDA $ 819 $ 821 $ 761 Financial results are at the subsidiary level. Loews Corporation │CNA │Boardwalk │ Hotels │
Slide 34: Appendix – Loews Hotels & Co Adjusted EBITDA
Appendix – Loews Hotels & Co Adjusted EBITDA Years Ended December 31 ($ millions) 2020 2019 2018 2017 2016 Consolidated GAAP pretax income (loss) $ (274) $ (28) $ 73 $ 65 $ 22 Non-recurring items1 13 110 2 (11) 17 Pretax income (loss) excluding non- $ (261) $ 82 $ 75 $ 54 $ 39 recurring items Deprec