Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Debt Investor Presentation (November 2010)
32 slides from Icahn Enterprises L.p's debt investor presentation, Nov 8, 2010
Slide 1: Icahn Enterprises L.P. Investor Presentation
Icahn Enterprises L.P. Investor Presentation November 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements and Non-GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements we make in this presentation, including statements regarding our future performance and plans for our business
Slide 3: Table of Contents
Table of Contents Tab Executive Summary 1 The Company 2 Financial Overview 3 Summary 4 2
Slide 4: Executive Summary
Executive Summary 3
Slide 5: Executive Summary
Executive Summary ($Millions) Icahn Enterprises L.P. (“IEP” or the “Company”) is a diversified holding company, with global businesses in Investment Management, Automotives, Railcar, Food Packaging, Metals, Real Estate and Home Fashion – Total market capitalization of approximately $3.1 billion (1
Slide 6: Summary of Terms
Summary of Terms Issuer .................................................... Icahn Enterprises, L.P. (“IEP” or the “Company”). Issue ..................................................... Tack-on to Existing Senior Notes (the “Notes”). Gross Proceeds ................................... $500 million.
Slide 7: As Adjusted Capitalization and Credit Statistics
As Adjusted Capitalization and Credit Statistics September 30, 2010 Actual As Adjusted (1) ($Millions) Liquid Assets: HoldCo Cash & Cash Equivalents (2) $ 792 $ 1,292 HoldCo Investment in Private Funds 2,482 2,482 HoldCo Liquid Assets 3,274 3,774 Subsidiaries Cash & Cash Equivalents (3) 1,580 1,580
Slide 8: The Company
The Company 7
Slide 9: Company Presenters
Company Presenters Joined Icahn Enterprises L.P. as President in April 2010 Dan Ninivaggi Previously Executive Vice President of Lear Corporation Partner at the law firm of Winston & Strawn LLP, specializing in M&A/Corporate Finance President Serves as a director of CIT Group Inc. Joined I
Slide 10: Key Considerations
Key Considerations Total assets “as adjusted” of ~$20 billion distributed across 7 operating subsidiaries Market value/Net worth of equity in operating subsidiaries of ~$6.7 billion “as adjusted” Significant Asset Value ~$3.8 billion in “market-valued” assets, consisting of Federal-Mogul and Ame
Slide 11: Business Portfolio at a Glance
Business Portfolio at a Glance Investment Food Management Automotive Metals Real Estate Home Fashion Railcar Packaging Asset Overview Partnership Owns 75.7% Owns 100% of Rental real estate, Owns $200 million Owns 54.3% Owns 71.4% of interests in public equity of PSC Metals property pre
Slide 12: Summary Corporate Organizational Chart
Summary Corporate Organizational Chart Icahn Enterprises L.P. Icahn Enterprises (NYSE: IEP) G.P. Inc. Market capitalization of 1% approximately $3.1 billion 1% 99% LP Interest Icahn Enterprises Holdings L.P. 67.7% 100% 100% 75.7% 100% 54.3% 71.4% WestPoint AREP Real American Viskase PSC Metals Icahn
Slide 13: Financial Performance by Segment: Investment Management
Financial Performance by Segment Investment Management ($Millions) Summary Operating Data: Assets Under Management: F is c a l Y e a r E nde d D e c e m be r 3 1, N ine M o nt hs E nde d 2007 2008 2009 9 / 3 0 / 2 0 0 9 9 / 3 0 / 2 0 10 Fiscal Year Ended December 31, Nine Months Ended IEP Interests:
Slide 14: Automotive Segment Overview
Automotive Segment Overview Strong liquidity position – In 2008, Icahn Enterprises Holdings acquired a majority interest in Federal-Mogul $1.6 billion, consisting of $1.1 billion cash and $538 – Purchased 50.8 million shares of Federal-Mogul Stock for an aggregate purchase price of million undrawn
Slide 15: Financial Performance by Segment: Automotive
Financial Performance by Segment Automotive ($Millions) Summary Operating Data: Capitalization: 9/30/2010 (1) Balance Rate Fiscal Year Ended December 31, Nine Months Ended Ca s h a nd Ca s h Equiva lents $ 1,054 2007 2008 2009 9/30/2009 9/30/2010 Total Revenues $ - $ 5,727 $ 5,397 $ 3,976 $ 4,644 %
Slide 16: Metals Segment Overview
Metals Segment Overview Metals segment conducted through indirect wholly owned subsidiary, PSC Metals, Inc. ("PSC Metals") – PSC Metals collects industrial and obsolete scrap metal, processes it into reusable forms and supplies the recycled metals to its customers Electric-arc furnace mills, int
Slide 17: Financial Performance by Segment: Metals
Financial Performance by Segment Metals ($Millions) Summary Operating Data: Current Capitalization: Fiscal Year Ended December 31, Nine Months Ended, 9/30/2010 2007 2008 2009 9/30/2009 9/30/2010 Balance Rate Cash and Cash Equivalents $ 22 Total Revenues $ 834 $ 1,243 $ 384 $ 273 $ 550 % Growth NA 49
Slide 18: Real Estate Segment Overview
Real Estate Segment Overview IEP’s real estate interests are focused in three areas: – Rental Real Estate – Real Estate Development – Resort Operations During Q3 2008, we invested $465 million of proceeds received from the sale of our gaming business to purchase two triple net leased properties
Slide 19: Financial Performance by Segment: Real Estate
Financial Performance by Segment Real Estate ($Millions) Summary Operating Data: Capitalization: Fiscal Year Ended December 31, Nine Months Ended 9/30/2010 2007 2008 2009 9/30/2009 9/30/2010 Tota l Revenues $ 113 $ 103 $ 96 $ 71 $ 69 Balance Rate % Growth NA -9% -7% NA -3% Cas h and Cas h Equivalent
Slide 20: Home Fashion Segment Overview
Home Fashion Segment Overview Home Fashion operations are conducted through WestPoint International, Inc. (“WPI”) WPI is a premier manufacturer and marketer of bed and bath home fashions – Manufactures, sources, distributes, markets and sells a broad range of home fashion consumer products Bed
Slide 21: Financial Performance by Segment: Home Fashion
Financial Performance by Segment Home Fashion ($Millions) Summary Operating Data: Capitalization: 9/ 30/ 2010 Fiscal Year Ended December 31, Nine Months Ended B alance R ate 2007 2008 2009 9/30/2009 9/30/2010 Total Revenues $ 706 $ 438 $ 382 $ 270 $ 308 Cash and Cash Equivalents $ 23 % Growth NA -38
Slide 22: Railcar Segment Overview
Railcar Segment Overview Manufactures railcars, custom designed railcar parts and other industrial products, primarily aluminum and special alloy steel castings Major plants located in Marmaduke and Paragould, Arkansas Specializes in customized tank and hopper cars Railcar repair, maintenanc
Slide 23: Financial Performance by Segment: Railcar
Financial Performance by Segment Railcar ($Millions) Summary Operating Data: Capitalization: Fiscal Year Ended December 31, Nine Months Ended 9/30/2010 2007 2008 2009 9/30/2009 9/30/2010 Balance Rate Total Revenues $ 713 $ 821 $ 444 $ 348 $ 175 % Growth NA 15% -46% NA -50% Cash and Cash Equivalents
Slide 24: Food Packaging Segment Overview
Food Packaging Segment Overview Worldwide leader in the production and sale of cellulosic, fibrous and plastic casings Operates seven manufacturing facilities and nine distribution centers throughout North America, Europe and South America – 68% of net revenue generated outside the U.S. Also m
Slide 25: Financial Performance by Segment: Food Packaging
Financial Performance by Segment Food Packaging ($Millions) Summary Operating Data: Capitalization: Fiscal Year Ended December 31, Nine Months Ended 9/30/2010 2007 2008 2009 9/30/2009 9/30/2010 Balance Rate Total Revenues $ 253 $ 290 $ 296 $ 223 $ 240 % Growth NA 15% 2% NA 8% Cash and Cash Equivalen
Slide 26: Financial Overview
Financial Overview 25
Slide 27: Liquidity Serves as a Competitive Advantage
Liquidity Serves as a Competitive Advantage ($Millions) IEP has applied a disciplined fiscal investment approach with a commitment towards substantial liquidity Total As adjusted 9/30/2010 Liquidity Liquid Assets: Hold Co. Cash & Cash Equivalents (1) $ 1,292 IEP Interest in Private Funds 2,482 Sub
Slide 28: As Adjusted Capitalization and Credit Statistics
As Adjusted Capitalization and Credit Statistics September 30, 2010 Actual As Adjusted (1) ($Millions) Liquid Assets: HoldCo Cash & Cash Equivalents (2) $ 792 $ 1,292 HoldCo Investment in Private Funds 2,482 2,482 HoldCo Liquid Assets 3,274 3,774 Subsidiaries Cash & Cash Equivalents (3) 1,580 1,580
Slide 29: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) Fi s ca l Ye a r Ende d Ni ne Months Ende d (1) 2007 2008 2009 9/30/2009 9/30/2010 Re ve nue s : I nve s tme nt Ma na ge me nt $ 588 $ (2,783) $ 1,596 $ 1,575 $ 688 Automoti ve - 5,727 5,397 3,976 4,644 Ra i l ca r 713 821 444 348 175 Food Pa cka gi ng 253
Slide 30: As Adjusted Consolidating Balance Sheet
As Adjusted Consolidating Balance Sheet September 30, 2010 ($Millions) Investment Food Real Home Holding Management Automotive Railcar Packaging Metals Estate Fashion Company Consolidated Total Assets: Operating Assets: Cash and Cash Equivalents: $ 7 $ 1,054 $ 311 $ 85 $ 22 $ 75 $ 23 $ 1,184 $ 2,761
Slide 31: Summary
Summary 30
Slide 32: Investment Considerations
Investment Considerations Significant Asset Value Strong Liquidity Position Extensive Track Record of Enhancing Value Proven Investment Team Significant Investment Realization Diversified Operating Subsidiaries 31
Icahn Enterprises — Debt Investor Presentation (November 2010) on 6ix