Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (March 2014)
37 slides from Icahn Enterprises L.p's investor presentation, Mar 18, 2014
Slide 1: Icahn Enterprises L.P. Investor Presentation March 2014
Icahn Enterprises L.P. Investor Presentation March 2014
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: IEP stock performance has meaningfully outpaced all its peers
Investment Highlights IEP stock performance has meaningfully outpaced all its peers 3 (1) April 1, 2009 is the approximate beginning of the economic recovery. Source : Bloomberg. Includes reinvestment of distributions. Based on the share price as of February 28, 2014. Time Period IEP Berkshire Leu
Slide 4: Investment Highlights: better time for activist investing
Investment Highlights 4 Mr . Icahn believes there has never a better time for activist investing, if practiced properly, than today. – Several factors are responsible for this: 1) low interest rates, which make acquisitions much less costly and therefore much more attractive, 2) abundance of cash
Slide 5: The Icahn Strategy
The Icahn Strategy Across all of our businesses, our success is based on a simple formula: we seek to find undervalued companies in the Graham & Do dd tradition, a methodology for valuing stocks that primarily looks for deeply depressed prices. However, while the typical Graham & Dodd value investor
Slide 6: The Icahn Strategy (continued)
The Icahn Strategy (continued) Unlike the individual investor, we have the wherewithal to purchase companies that we feel we can operate more effectively th an incumbent management. In addition, through our Investment segment, we are in a position to pursue our activist strategy by purchasing stock
Slide 7: Company Overview
Company Overview 7
Slide 8: 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, Ra ilc ar, Food Packaging, Metals, Real Estate and Home Fashion IEP is majority owned and controlled by Carl Icahn – Over the last several year
Slide 9: Summary Corporate Organizational Chart
71% 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 Corp. (NasdaqGS:FDML) Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprise
Slide 10: 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 share leader in each of its principal product categories with a long history o
Slide 11: 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 nine operating segments and approximately $32 billion of assets as of December 31, 2013 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and
Slide 12: Ability to Maximize Shareholder Value Through Proven Activist Strategy
IEP seeks undervalued companies and often becomes “actively” involved in the targeted companies Activist strategy requires significant capital, rapid execution and willingness to take control of companies Implement changes required to improve businesses Ability to Maximize Shareholder Value Th
Slide 13: Situation Overview
Situation Overview Historically, two businesses had a natural synergy ─ Aftermarket benefitted from OEM pedigree and scale Review of business identified numerous dis - synergies by having both under one business ─ Different customers, methods of distribution, cost structures, engineering and R&D
Slide 14: Deep Team Led by Carl Icahn
Deep Team Led by Carl Icahn Led by Carl Icahn ─ Substantial investing history provides IEP with unique network of relationships and access to Wall Street Team consists of approximately 20 professionals with diverse backgrounds ─ Well rounded team with professionals focusing on different areas su
Slide 15: Overview of Operating Segments
Overview of Operating Segments 15
Slide 16: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments Since inception in November 2004, the Investment Funds return is approximately 257%, representing an annualized rate of return of 15% through December 31, 2013 ─ For year - ended December 31, 2013, returns of approximately 31% Long history of investing in publi
Slide 17: Significant Holdings
Significant Holdings As of December 31, 2013 (3) As of December 31, 2012 (3) As of December 31, 2011 (3) Company Mkt. Value ($mm) (4) % Ownership (5) Company Mkt. Value ($mm) (4) % Ownership (5) Company Mkt. Value ($mm) (4) % Ownership (5) $2,654 0.5% $1,083 11.5% $1,920 9.4% $1,841 11.4% $992 9.0%
Slide 18: Energy Segment: Highlights and Recent Developments
Highlights and Recent Developments CVR Refining IPO completed on January 23, 2013 and secondary offering on May 14, 2013 CVR Partners secondary offering completed May 22, 2013 Crude supply advantages supported by increasing North American crude oil production, decreasing North Sea production,
Slide 19: CVR Refining, LP
Gasoline 47.7% Distillate 41.4% Other 10.9% 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 ─ Has access to and can process price - advantaged mid - continent local and Cana
Slide 20: CVR Partners, LP
CVR Partners, LP (NYSE:UAN ) Attractive market dynamics for nitrogen fertilizer ─ Decreasing world farmland per capita ─ Increasing demand for corn (largest use of nitrogen fertilizer) and meat ─ Nitrogen represents ~62% of fertilizer consumption ─ Nitrogen fertilizers must be applied annually, cr
Slide 21: Segment: Automotive
Segment: Automotive Company Description Federal Mogul Corporation (NasdaqGS:FDML) operates in two business segments: Powertrain and Vehicle Component Systems ─ Powertrain focuses on original equipment powertrain products for automotive, heavy duty and industrial applications ─ Vehicle Component Sy
Slide 22: Federal-Mogul Corp.'s Leading Market Position
Powertrain Segment VCS Segment Product Line Market Position Product Line Market Position Pistons #1 in diesel pistons #2 a cross all pistons Engine Global #1 Rings & Liners Market leader Sealing Components Global #1 in Gaskets Valve Seats and Guides Market leader Brake Pads / Components Global #1 Be
Slide 23: Railcar Segment: Highlights and Recent Developments
Highlights and Recent Developments Railcar manufacturing remains strong ─ Approximately 8,560 railcar backlog as of December 31, 2013 ─ Tank demand from increasing crude oil production from shale oil ─ Covered hopper car demand from increasing industrial manufacturing base in United States due to
Slide 24: Gaming Segment: Highlights and Recent Developments
Highlights and Recent Developments Management uses a highly analytical approach to enhance marketing, improve utilization, optimize product mix and reduce expenses ─ Established measurable, property specific, customer service goals and objectives to meet customer needs ─ Utilize sophisticated cust
Slide 25: Food Packaging Segment: Highlights and Recent Developments
Highlights and Recent Developments Future growth expected to be driven by changing diets of a growing middle class in emerging markets ─ Since 2008, sales to emerging economies have grown, on average, 12.5% per year ─ Emerging market sales are over 50% of global sales in 2013 compared to 36% in 20
Slide 26: Metals Segment: Highlights and Recent Developments
Highlights and Recent Developments NAFTA steel demand growth is estimated to be 0.2% for 2013, with growth forecasted to be 3.2% in 2014 (1) Increasing global demand for steel and other metals drives demand for U.S. scrap exports ─ Global steel use increasing 3.1% in 2013 and 3.3% in 2014 (1)
Slide 27: Real Estate Segment: Highlights and Recent Developments
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 $100 billion market cap, A - credit) for two large buildings with leases through 2020 – 2021
Slide 28: Home Fashion Segment: Highlights and Recent Developments
Highlights and Recent Developments One of the largest providers of home textile goods in the United States Largely completed restructuring of manufacturing footprint ─ Transitioned majority of manufacturing to low cost plants overseas Streamlined merchandising, sales and customer service divis
Slide 29: Financial Performance
Financial Performance 29
Slide 30: Financial Performance
Financial Performance Adjusted EBITDA Attributable to Icahn Enterprises Equity Attributable to Icahn Enterprises 30 $1,541 $1,546 $1,896 FYE 2011 FYE 2012 FYE 2013 $3,755 $4,669 $6,092 12/31/11 12/31/12 12/31/13 ($ in millions) 2011 2012 2013 ($ in millions) 2011 2012 2013 Adjusted EBITDA attributab
Slide 31: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 31 2011 2012 2013 Revenues: Investment 1,896$ 398$ 2,031$ Automotive 6,937 6,677 6,876 Energy - 5,519 9,063 Metals 1,096 1,103 929 Railcar 691 799 744 Gaming 624 611 571 Food Packaging 338 341 346 Real Estate 90 88 85 Home Fashion 325 231 187 Holding Compa
Slide 32: Strong Balance Sheet
Strong Balance Sheet ($Millions) 32 InvestmentAutomotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents 3$ 761$ 842$ 31$ 417$ 359$ 19$ 32$ 16$ 782$ 3,262$ Cash held at consolidated affiliated partnerships and restric
Slide 33: 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 book value or market comparables of other assets 33 ($ Millions) Note: Indicative net asset value does not purport to reflect a valuation of I
Slide 34: Appendix — EBITDA Reconciliation
Appendix — EBITDA Reconciliation 34
Slide 35: Adjusted EBITDA Reconciliation by Segment – Twelve Months Ended December 31, 2013
Adjusted EBITDA Reconciliation by Segment – Twelve Months Ended December 31, 2013 ($Millions) 35 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $ 1,902 $ 263 $ 479 $ (28) $ 139 $ 19 $ 43 $ 17
Slide 36: Adjusted EBITDA Reconciliation by Segment – Twelve Months Ended December 31, 2012
Adjusted EBITDA Reconciliation by Segment – Twelve Months Ended December 31, 2012 ($Millions) 36 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $ 372 $ (22) $ 338 $ (58) $ 92 $ 30 $ 6 $ 19 $ (
Slide 37: Adjusted EBITDA Reconciliation by Segment – Twelve Months Ended December 31, 2011
Adjusted EBITDA Reconciliation by Segment – Twelve Months Ended December 31, 2011 ($Millions) 37 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $ 1,830 $ 168 $ - $ 6 $ 40 $ 24 $ 6 $ 18 $ (66)
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