Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (November 2018)
33 slides from Icahn Enterprises L.p's investor presentation, Nov 15, 2018
Slide 1: Icahn Enterprises L.P. Investor Presentation November 2018
Icahn Enterprises L.P. Investor Presentation November 2018
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 27A of the Securities Act of 1933, as amended, and Section 21E of the Secur
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, Mining, Railcar, Food Packaging, Metals, Real Estate and Home Fashion ▪ IEP is majority owned and controlled by Carl Icahn – Over many years, Carl Icahn
Slide 5: Summary Corporate Organizational Chart
Summary Corporate Organizational Chart Icahn 1% Icahn Enterprises L.P. Enterprises G.P. Inc. (NasdaqGS: IEP) 99% LP Interest 1% Icahn Enterprises Holdings L.P. As of September 30, 2018, Icahn Enterprises had 100% American Railcar Leading North American manufacturer of hopper and investments with a f
Slide 6: Diversified Subsidiary Companies with Significant Inherent Value
Diversified Subsidiary Companies with Significant Inherent Value ▪ IEP’s subsidiary companies possess key competitive strengths and / or leading market positions ▪ IEP seeks to create incremental value by investing in organic growth and targeting businesses that offer consolidation opportunities – C
Slide 7: Evolution of Icahn Enterprises
Evolution of Icahn Enterprises ▪ IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to nine operating segments and approximately $31 billion of assets as of September 30, 2018 ▪ IEP has demonstrated a history of successfully acquiring under
Slide 8: Ability to Maximize Shareholder Value Through Proven Activist Strategy
Ability to Maximize Shareholder Value Through Proven Activist Strategy ▪ IEP seeks undervalued companies and often becomes “actively” involved in the targeted companies Putting Activism into Action ▪ Activist strategy requires significant capital, rapid execution and willingness to take control of c
Slide 9: Significant Experience Optimizing Business Strategy and Capital Structure
Significant Experience Optimizing Business Strategy and Capital Structure ▪ IEP’s management team possesses substantial strategic and financial expertise – Maintains deep knowledge of capital markets, bankruptcy laws, mergers and acquisitions and transaction processes ▪ Active participation in the s
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 su
Slide 11: Overview of Operating Segments
Overview of Operating Segments 11
Slide 12: Segment: Investment
Segment: Investment Segment Description Highlights and Recent Developments ▪ IEP invests its proprietary capital through various ▪ Since inception in 2004 through September 30, 2018 the Investment Funds’ cumulative private investment funds (the “Investment Funds”) return was approximately 128.3%, re
Slide 13: Segment: Energy
Segment: Energy Segment Description Highlights and Recent Developments ▪ CVR Energy, Inc. (NYSE:CVI) operates as a holding ▪ In August 2018, CVR Energy completed an exchange offer to acquire additional company that owns majority interests in two common units of CVR Refining in exchange for shares of
Slide 14: Segment: Automotive
Segment: Automotive Segment Description Highlights and Recent Developments ▪ We conduct our Automotive segment through our wholly owned subsidiary Icahn Automotive Group ▪ In October 2018, IEP sold Federal-Mogul, which was previously reported in our LLC ("Icahn Automotive"). Automotive segment. IEP
Slide 15: Segment: Railcar
Segment: Railcar Segment Description Highlights and Recent Developments ▪ American Railcar Industries, Inc. (NASDAQ:ARII) operates in three business segments: ▪ In October 2018, IEP announced a definitive agreement to sell ARI for aggregate manufacturing operations, railcar services and consideratio
Slide 16: Segment: Food Packaging
Segment: Food Packaging Segment Description Highlights and Recent Developments ▪ Viskase Companies, Inc (OTCPK:VKSC) is a worldwide leader in the production and sale of ▪ Future growth expected to be driven by changing diets of a growing middle class cellulosic, fibrous and plastic casings for the i
Slide 17: Segment: Metals
Segment: Metals Segment Description Highlights and Recent Developments ▪ PSC Metals, Inc. is one of the largest independent metal recycling companies in the U.S. ▪ Increasing global demand for steel and other metals drives demand for U.S. scrap ▪ Collects industrial and obsolete scrap metal, process
Slide 18: Segment: Real Estate
Segment: Real Estate Segment Description Highlights and Recent Developments ▪ Consists of rental real estate, property development and club operations ▪ Business strategy is based on long-term investment outlook and operational expertise Rental Real Estate Operations ▪ Rental real estate consists pr
Slide 19: Segment: Mining
Segment: Mining Segment Description Highlights and Recent Developments ▪ Ferrous Resources has rights to certain iron ore mineral resources in Brazil and develops mining ▪ IEP acquired a controlling interest in Ferrous Resources in June 2015 operations and related infrastructure to produce and sell
Slide 20: Segment: Home Fashion
Segment: Home Fashion Segment Description Highlights and Recent Developments ▪ WestPoint Home LLC is engaged in manufacturing, sourcing, marketing, distributing and selling home ▪ One of the largest providers of home textile goods in the United States fashion consumer products ▪ WestPoint Home owns
Slide 21: Financial Performance
Financial Performance 21
Slide 22: Financial Performance
Financial Performance Net Income (loss) from Continuing Operations Attributable to Adjusted EBITDA Attributable to Icahn Enterprises Icahn Enterprises $2,316 $742 $618 $315 $532 $174 $(958) $(1,089) FYE 2015 FYE 2016 FYE 2017 LTM 9/30/18 FYE 2015 FYE 2016 FYE 2017 LTM 9/30/18 LTM LTM FYE December 31
Slide 23: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($ Millions) Nine Months Ended LTM FYE December 31, September 30, September 30, 2015 2016 2017 2017 2018 2018 Net income from continuing operations: Investment $ (1,665) $ (1,487) $ 118 $ 440 $ 266 $ (56) Automotive (4) 19 (51) (36) (65) (80) Energy 7 (604) 275 15 269
Slide 24: Strong Balance Sheet
Strong Balance Sheet ($ Millions) As of September 30, 2018 Food Home Holding Discontinued Investment Automotive Energy Metals Railcar Mining Packaging Real Estate Fashion Company Operations Consolidated Assets Cash and cash equivalents $ 5 $ 46 $ 702 $ 20 $ 74 $ 19 $ 49 $ 40 $ 1 $ 97 $ — $ 1,053 Cas
Slide 25: IEP Summary Financial Information
IEP Summary Financial Information ($ Millions) ▪ 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 Actual As of Pro Forma(1) Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Sep 30 2017 2017 20
Slide 26: Appendix Adjusted EBITDA
Appendix Adjusted EBITDA 26
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 and amortiza
Slide 28: Adjusted EBITDA Reconciliation by Segment – LTM September 30, 2018
Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended September 30, 2018 ($ Millions) Food Home Holding Investment Automotive Energy Metals Railcar Mining Packaging Real Estate Fashion Company Consolidated Adjusted EBITDA: Net income (loss) $ (56) $ (80) $ 529 $ (40) $ 229 $ 2 $ (29)
Slide 29: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2018
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2018 ($ Millions) Food Home Holding Investment Automotive Energy Metals Railcar Mining Packaging Real Estate Fashion Company Consolidated Adjusted EBITDA: Net income (loss) $ 266 $ (65) $ 269 $ 8 $ 36 $ 2 $ (15) $ 87 $ (10)
Slide 30: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2017
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2017 ($ Millions) Food Home Holding Investment Automotive Energy Metals Railcar Mining Packaging Real Estate Fashion Company Consolidated Adjusted EBITDA: Net income (loss) $ 440 $ (36) $ 15 $ 4 $ 1,074 $ 10 $ 8 $ 500 $ (11)
Slide 31: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017 ($ Millions) Food Home Holding Investment Automotive Energy Metals Railcar Mining Packaging Real Estate Fashion Company Consolidated Adjusted EBITDA: Net income (loss) $ 118 $ (51) $ 275 $ (44) $ 1,267 $ 10 $ (6) $ 549 $ (20) $
Slide 32: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016 ($ Millions) Food Home Holding Investment Automotive Energy Metals Railcar Mining Packaging Real Estate Fashion Company Consolidated Adjusted EBITDA: Net income (loss) $ (1,487) $ 19 $ (604) $ (20) $ 183 $ (24) $ 8 $ 5 $ (12) $
Slide 33: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015 ($Millions) Food Home Holding Investment Automotive Energy Metals Railcar Mining Packaging Real Estate Fashion Company Consolidated Adjusted EBITDA: Net income (loss) $ (1,665) $ (4) $ 7 $ (51) $ 213 $ (195) $ (3) $ 61 $ (4) $
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