Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (September 2018)
31 slides from Icahn Enterprises L.p's investor presentation, Sep 11, 2018
Slide 1: 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 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures ET Forward-Looking Statements This presentation contains certain statements that are, or may be deemed to be, Yonward-iooking statements” within the meaning of Section 27A of the Secufties Act of 1933, as amended, and Section 21E of the Secu
Slide 3: 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 has co
Slide 4: Summary Corporate Organizational Chart
85% 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 LLC Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprises Holdings L.P. 1% 1
Slide 5: 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 leader in each of its principal product categories with a long history of qual
Slide 6: IEP history of acquiring undervalued assets and ten operating segments
IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to ten operating segments and approximately $30 billion of assets as of June 30, 2018 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and enhancing
Slide 7: Situation Overview
Situation Overview Historically, two businesses had a natural synergy Motorparts 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, and capit
Slide 8: 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 such as eq
Slide 9: Overview of Operating Segments
Overview of Operating Segments 11
Slide 10: Highlights and Recent Developments: Investment
Highlights and Recent Developments Since inception in 2004 through June 30, 2018, the Investment Funds’ cumulative return was approximately 143.8%, representing an annualized rate of return of approximately 6.7% Long history of investing in public equity and debt securities and pursuing activist age
Slide 11: Highlights and Recent Developments: Energy
Highlights and Recent Developments In June, 2018, CVR Energy commenced an exchange offer to acquire additional common units of CVR Refining in exchange for shares of CVR Energy common stock. As a result: CVR Energy and its affiliates own approximately 84.5% of CVR Refining’s outstanding common units
Slide 12: Segment: Automotive
Segment: Automotive Company 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 automotive r
Slide 13: Highlights and Recent Developments: Railcar
Highlights and Recent Developments Sold American Railcar Leasing for $3.4 billion in 2017 Railcar manufacturing Tank railcar demand impacted by volatile crude oil prices In August 2018, announced multi-year order for up to 12,000 railcars Approximately 13,100 railcars(2) in ARI’s lease fleet provide
Slide 14: Highlights and Recent Developments: 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 Acquired a plastic casing manufacturer in Poland in December 2016 and a fibrous casing manufacturer in January 2017 Develo
Slide 15: Highlights and Recent Developments: 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 furnace drive scrap demand and are significantly more energy efficient than blast furnaces Electric arc f
Slide 16: Highlights and Recent Developments: Real Estate
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 $100bn market cap, A- credit) for two large buildings with leases through 2021 and 2030 9 legacy prop
Slide 17: Highlights and Recent Developments: Mining
Highlights and Recent Developments IEP acquired a controlling interest in Ferrous Resources in June 2015 Mining segment has been concentrating on sales in Brazil, where the best margins are being captured Iron ore prices have recovered significantly due to increased demand from China Segment: Mining
Slide 18: Highlights and Recent Developments: Home Fashion
Highlights and Recent Developments One of the largest providers of home textile goods in the United States Transitioned majority of manufacturing to low cost plants overseas Streamlined merchandising, sales and customer service divisions Focus on core profitable customers and product lines WPH has i
Slide 19: Segment: Home Fashion
Segment: Home Fashion Company Description = WestPoint Home LLC is engaged in ‘manufacturing, sourcing, marketing, distributing and selling home fashion consumer products ‘= WestPoint Home owns many of the most well- known brands in home textiles including Martex, Grand Patrician, Luxor and Vellux =
Slide 20: Financial Performance
Financial Performance Net Income from Continuing Operations Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises 22 ($Millions) ($958) ($1,089) $2,316 $1,138 FYE 2015 FYE 2016 FYE 2017 LTM 6/30/18 $315 $174 $742 $938 FYE 2015 FYE 2016 FYE 2017 LTM 6/30/18 LTM June 30,
Slide 21: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 23 LTM June 30, 2015 2016 2017 2017 2018 2018 Net Income from continuing operations: Investment ($1,665) ($1,487) $118 $81 $798 $835 Automotive (4) 19 (51) (20) (52) (83) Energy 7 (604) 275 (1) 160 436 Metals (51) (20) (44) 3 7 (40) Railcar 213 183 1,267 1
Slide 22: Strong Balance Sheet
Strong Balance Sheet ($Millions) 24 Investment Automotive Energy Railcar Metals Mining Food Packaging Real Estate Home Fashion Holding Company Discontinued Operations Consolidated Assets Cash and cash equivalents $6 $53 $534 $104 $11 $11 $46 $30 $1 $79 $0 $875 Cash held at consolidated affiliated pa
Slide 23: IEP Summary Financial Information
IEP Summary Financial Information Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and book value or market comparables of other assets 25 ($ Millions) Note: Indicative net asset value does not purport to reflect a valuation of IEP
Slide 24: Appendix—Adjusted EBITDA Reconciliations
Appendix—Adjusted EBITDA Reconciliations 26
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures 27 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 amort
Slide 26: Adjusted EBITDA Reconciliation by Segment – LTM June 30, 2018
Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended June 30, 2018 ($Millions) 28 Investment Automotive Energy Metals Railcar Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $835 ($83) $436 ($40) $231 ($3) ($12) $561 ($21
Slide 27: Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2017
Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2017 ($Millions) 30 Investment Automotive Energy Metals Railcar Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $81 ($20) ($1) $3 $1,059 $12 $2 $2 ($7) $332 $1,463 Int
Slide 28: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2017 ($Millions) 31 Investment Automotive Energy Metals Railcar Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) $118 ($51) $275 ($44) $1,267 $10 ($6) $549 ($20) $355 $2,
Slide 29: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2016 ($Millions) 32 Investment Automotive Energy Metals Railcar Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net (loss) income ($1,487) $19 ($604) ($20) $183 ($24) $8 $5 ($12) ($287) (
Slide 30: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015 ($Millions) 33 Investment Automotive Energy Metals Railcar Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net (loss) income ($1,665) ($4) $7 ($51) $213 ($195) ($3) $61 ($4) ($209) (
Slide 31: Adjusted EBITDA Reconciliation by Segment — Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment — Year Ended December 31, 2015 (SMiions) Net Income tremens ene) Depron deptin an amertinton Losses (gan on deposition ses Spee eed conan eqns ‘Ast EEE ttre nw eta Ire Adjusted £81708 atibutable tote: Dapreston dete an amen Ionte (gam deposition of aac ‘jest
Icahn Enterprises — Investor Presentation (September 2018) on 6ix