Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Debt Investor Presentation (April 2021)
37 slides from Icahn Enterprises L.p's debt investor presentation, Apr 8, 2021
Slide 1: Icahn Enterprises L.P. Roadshow Presentation April 2021
Icahn Enterprises L.P. Roadshow Presentation April 2021
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
Keith Cozza – President & Chief Executive Officer SungHwan Cho – Chief Financial Officer Presenters 3
Slide 4: Agenda
Agenda 4 • Transaction Overview • Company Overview • Investment Highlights • Financial Performance • Appendix
Slide 5: Transaction Overview
Transaction Overview 5
Slide 6: Executive Summary
Executive Summary 6 • Icahn Enterprises L.P. (“IEP” or the “Company”) is a diversified Holding Company, with global businesses in Investment, Automotive, Energy, Real Estate, Food Packaging, Metals, Home Fashion and Pharma ‒ Total equity market capitalization of approximately $13.6 billion (1) as of
Slide 7: Capitalization and Credit Statistics
Capitalization and Credit Statistics 7 (1) Gives effect to ( i ) the issuance of the Notes offered hereby and the use of the net proceeds therefrom, (ii) the issuance of $750 million aggre gat e principal amount of our 4.375% senior unsecured notes due 2029 on January 19, 2021 and the use of the net
Slide 8: Summary of Terms
Summary of Terms 8 Issuers Icahn Enterprises L.P. (“IEP” or the “Company”) and Icahn Enterprises Finance Corp. Issue $455 million of Add - On Senior Notes (the “Add - On Notes” and together with the 5.250% Senior Unsecured Notes due 2027, the “Notes”) Term May 15, 2027 Optional Redemption Same as ex
Slide 9: Company Overview
Company Overview 9
Slide 10: Overview of Icahn Enterprises
Overview of Icahn Enterprises • Icahn Enterprises L.P. is a diversified holding company with operating segments in Investment, Energy, Automotive, Food Packaging, Metals, Real Estate , Home Fashion and Pharma • IEP is majority owned and controlled by Carl Icahn ‒ Over many years, Carl Icahn has cont
Slide 11: Summary Corporate Organizational Chart
CVR Energy Inc. (NYSE: CVI) Summary Corporate Organizational Chart WestPoint Home LLC PSC Metals LLC AREP Real Estate Holdings, LLC Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprises Holdings L.P. 1% 1% 8 9% 71% Icahn Capital LP Viskase Companies Inc. (OTCPK:VKSC) A
Slide 12: Investment Highlights
Investment Highlights 12
Slide 13: 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 • Deep Management Team Led by Car
Slide 14: Diversified Holdings
Diversified Holdings 14 1 • The Company is well diversified across various industries and sectors Asset Mix by Operating Segments for Icahn Enterprises (1)(2) Note: As of December 31, 2020. Market valued subsidiaries based on closing share price and the number of shares owned by the Hol ding Company
Slide 15: History of Successfully Monetizing Investments
History of Successfully Monetizing Investments 15 2 • 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
Slide 16: Segment: Investment – Highlights and Recent Developments
Highlights and Recent Developments • Since inception in 2004 through December 31, 2020, the Investment Funds’ cumulative return was approximately 72.7%, representing an annualized rate of return of approximately 3.4% • Long history of investing in public equity and debt securities and pursuing activ
Slide 17: Segment: Energy
Segment: Energy Segment Description • CVR Energy, Inc. (NYSE:CVI) is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing businesses through its interests in CVR Refining, LP and CVR Partners, LP (NYSE:UAN) ‒ CVR Refining is an independent p
Slide 18: Segment: Automotive
Segment: Automotive Segment Description • We conduct our Automotive segment 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 automotiv
Slide 19: Segment: Food Packaging
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 • Developed markets remain a steady source of income ‒ Distribution channels to certain customers spanning more than 5
Slide 20: Segment: Metals
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 furnaces drive scrap demand and are significantly more energy efficient than blast furnaces ‒ Elect
Slide 21: Segment: Real Estate
Highlights and Recent Developments • Business strategy is based on long - term investment outlook and operational expertise Investment Property Operations • Maximize value of commercial lease portfolio through effective management of existing properties ‒ Seek to sell assets on opportunistic basis P
Slide 22: Segment: Home Fashion
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 23: Segment: Pharma
Highlights and Recent Developments • In December 2020, we acquired all of the outstanding common stock of Vivus upon its emergence from bankruptcy. Prior to Vivus’ emergence from bankruptcy, we held an investment in all of Vivus’ convertible corporate debt securities, as well as all of its other out
Slide 24: Significant Asset Coverage
Significant Asset Coverage 24 • Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and boo k value or market comparable of other assets Note: Indicative net asset value does not purport to reflect a valuation of Icahn Enterprises. Th
Slide 25: Liquidity Serves as a Competitive Advantage
Liquidity Serves as a Competitive Advantage • Our operating subsidiaries and the Holding Company maintain ample liquidity to take advantage of attractive opportunities for their respective businesses 25 5 (1) Gives effect to (i) the issuance of the Notes offered hereby and the use of the net proceed
Slide 26: Deep Management Team Led by Carl Icahn
Deep Management 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 professionals with diverse backgrounds ‒ Well rounded team with professionals focusing on different areas such as
Slide 27: Financial Performance
Financial Performance 27
Slide 28: Consolidated Financial Snapshot
Consolidated Financial Snapshot 28 Net Income (Loss): Investment $679 ($1,543) ($1,447) Energy 334 314 (327) Automotive (230) (197) (198) Food Packaging (15) (22) 4 Metals 5 (22) - Real Estate 112 16 (16) Home Fashion (11) (17) (7) Pharma - - (1) Mining 1 311 - Railcar 1 - - Holding Company (639) (5
Slide 29: Strong Balance Sheet
Strong Balance Sheet 29 ASSETS Cash and cash equivalents $14 $667 $45 $16 $1 $21 $2 $8 $925 $1,699 Cash held at consolidated affiliated partnerships and restricted cash 1,558 7 - - 2 8 6 - 11 1,592 Investments 8,239 253 40 - - 15 - - 366 8,913 Accounts receivable, net - 178 109 88 64 10 33 20 - 502
Slide 30: Appendix
Appendix 30
Slide 31: IEP History and Track Record
• IEP began as American Real Estate Partners, which was founded in 1987, and now has diversified its portfolio to seven operating segments and approximately $2 5 billion of assets as of December 31, 2020 • IEP has demonstrated a history of successfully acquiring undervalued assets and improving and
Slide 32: Biography
Biography Mr. Kekedjian served as Chief Investment Officer and Head of Business Development at General Electric, with responsibility across a broad global portfolio of financial and industrial businesses. He sourced sovereign capital partners during the 2008 financial crisis, orchestrated the $250B
Slide 33: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 33
Slide 34: Non-GAAP Financial Measures
Non - GAAP Financial Measures 34 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 35: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2020
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2020 35 Net income (loss) ($1,447) ($327) ($198) $4 $0 ($16) ($7) ($1) $0 $0 ($476) ($2,468) Interest expense, net 196 121 12 11 1 - 1 - - - 328 670 Income tax expense (benefit) - (112) (54) 8 - - - - - - 42 (116) Depreciation, depl
Slide 36: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 9 36 Net income (loss) ($1,543) $314 ($197) ($22) ($22) $16 ($17) $311 $0 ($599) ($1,759) Interest expense, net 106 102 20 17 1 (1) 1 3 - 296 545 Income tax expense (benefit) - 112 (55) 6 - (6) - 1 - (38) 20 Depreciation, deplet
Slide 37: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 201 8 37 Net income (loss) $679 $334 ($230) ($15) $5 $112 ($11) $1 $1 ($639) $237 Interest expense, net 46 102 16 15 - 1 1 2 - 328 511 Income tax expense (benefit) - 46 (52) (4) 1 5 - 2 2 (14) (14) Depreciation, depletion and amorti
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