Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Debt Investor Presentation (January 2017)
43 slides from Icahn Enterprises L.p's debt investor presentation, Jan 10, 2017
Slide 1: Icahn Enterprises L.P. Roadshow Presentation January 2017
Icahn Enterprises L.P. Roadshow Presentation January 2017
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
Presenters Keith Cozza – President & Chief Executive Officer SungHwan Cho – Chief Financial Officer 3
Slide 4: Agenda
Agenda Transaction Overview Company Overview Investment Highlights Financial Performance Appendix 4
Slide 5: Transaction Overview
Transaction Overview
Slide 6: Executive Summary
Executive Summary Icahn Enterprises L.P. (“IEP” or the “Company”) is a diversified holding company, with global businesses in Investment, Automotive, Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate and Home Fashion – Total equity market capitalization of approximately $8.8 (1)
Slide 7: Capitalization and Credit Statistics
Capitalization and Credit Statistics Key Points Strong financial metrics (1) : – Total c onsolidated liquidity of $5.2 billion – Indicative gross asset value to holding company net debt coverage of 2.3x Holding company cash and cash equivalents value of $1.6 billion (1) Affiliates of Carl Icah
Slide 8: Summary of Terms
Summary of Terms Issuers Icahn Enterprises L.P. and Icahn Enterprises Finance Corp. (“IEP” or the “Company”) Issue $900 million of Senior Notes Term 5 - Year Senior Notes due 2022 7 - Year Senior Notes due 2024 Optional Redemption Non - call 2 Non - call 3 Placement Type 144A and Regulation S Privat
Slide 9: Company Overview
Company Overview
Slide 10: 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, Mi nin g, Railcar, Food Packaging, Metals, Real Estate and Home Fashion IEP is majority owned and controlled by Carl Icahn – Carl Icahn has con
Slide 11: Summary Corporate Organizational Chart
66% 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 Holdings Corp. (NasdaqGS:FDML) Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn E
Slide 12: 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 13: Investment Highlights
Investment Highlights
Slide 14: Investment Highlights
Investment Highlights Diversified Holdings Exposure to Strong, Cyclical Trends and Economic Recovery Significant Asset Coverage Strong, Stable Cash Flow Generation from Operating Subsidiaries 1 2 3 4 14
Slide 15: Diversified Holdings
Diversified Holdings Operating Segments for Icahn Enterprises Automotive(3) 29% Energy(4) 11% Gaming(5) 11% Railcar(6) 16% Food Packaging 1% Metals 2% Real Estate 7% Home Fashion 2% Mining 1% Investment 20% Asset Mix (1)(2) 1 The Company is well diversified across various industries and sectors (1
Slide 16: Exposure to Strong, Cyclical Trends and Economic Recovery
Exposure to Strong, Cyclical Trends and Economic Recovery 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 of quali
Slide 17: Highlights and Recent Developments: Investment
Highlights and Recent Developments Since inception in 2004 through December 31, 2016, the Investment Funds’ cumulative return was approximately 116.1%, representing an annualized rate of return of approximately 6.5% Long history of investing in public equity and debt securities and pursuing acti
Slide 18: Highlights and Recent Developments: Energy
Highlights and Recent Developments Strategic location and complex refineries allows CVR to take advantage of differences in regional crude prices to maximize profitability CVR Partners acquired an additional fertilizer plant in April 2016, giving it geographic and feed stock diversity CVR Ener
Slide 19: Segment: Automotive
Segment: Automotive Company Description We conduct our Automotive segment through our majority ownership in Federal - Mogul Holdings Corporation ( NasdaqGS:FDML ) and our wholly owned subsidiaries, Pep Boys and IEH Auto Parts Holding Federal - Mogul operates with two end - customer focused busin
Slide 20: Highlights and Recent Developments: Railcar
Highlights and Recent Developments Railcar manufacturing remains strong ─ 5,083 railcar backlog as of September 30, 2016 ─ Tank railcar demand impacted by volatile crude oil prices ─ New tank railcar design requirements released in May 2015 Growing railcar leasing business provides stability ─ I
Slide 21: Highlights and Recent Developments: Gaming
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 22: Significant Asset Coverage
Significant Asset Coverage 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 22 ($ Millions) Note: Indicative net asset value does not purport to reflect a valuation of IEP. The
Slide 23: Strong, Stable Cash Flow Generation from Operating Subsidiaries
Strong, Stable Cash Flow Generation from Operating Subsidiaries The Company and its subsidiaries generate ample cash flow to cover interest payments and operating expenses 4 Note: Information for the year ended December 31, 2016 is preliminary and reflects management’s estimates based solely upon
Slide 24: Liquidity Serves as a Competitive Advantage
Liquidity Serves as a Competitive Advantage The Company and its subsidiaries maintain ample liquidity to take advantage of attractive opportunities for their respective businesses ($Millions) 24 4 Pro-Forma (1) Liquidity As of 9/30/2016 As of 9/30/2016 Liquid Assets: Hold Co. Cash & Cash Equivalen
Slide 25: Financial Performance
Financial Performance
Slide 26: Financial Performance
Financial Performance Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises 26 $1,025 ($373) ($1,194) ($2,049) FYE 2013 FYE 2014 FYE 2015 LTM 9/30/16 $1,899 $1,018 $929 $446 FYE 2013 FYE 2014 FYE 2015 LTM 9/30/16 ($Millions) LTM September 30, LTM Septe
Slide 27: Consolidated Financial Snapshot
Consolidated Financial Snapshot 27 ($Millions) LTM September 30, 2013 2014 2015 9/30/2015 9/30/2016 2016 Net Income (Loss): Investment $1,902 ($684) ($1,665) ($263) ($972) ($2,374) Automotive 263 (90) (352) - 103 (249) Energy 479 168 7 347 (588) (928) Metals (28) (25) (51) (22) (13) (42) Railcar 139
Slide 28: Strong Balance Sheet
Strong Balance Sheet ($Millions) 28 InvestmentAutomotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $14 $375 $763 $5 $299 $290 $2 $47 $13 $2 $192 $2,002 Cash held at consolidated affiliated partnerships an
Slide 29: Appendix
Appendix 29
Slide 30: IEP began as American Real Estate Partners, which was founded in 1987, and
IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to ten operating segments and approximately $33 billion of assets as of September 30, 2016 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and
Slide 31: 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 ─ In 2012, Viskase completed a new finishing center in the Philippines and expanded its capacity in Brazil ─ Majority of revenues from emerging markets Developed
Slide 32: Highlights and Recent Developments: Metals
Highlights and Recent Developments Increasing global demand for steel and other metals drives demand for U.S. scrap Results are currently impacted by headwinds from: ─ Low iron ore prices ─ Strong U.S. dollar ─ Increased steel imports Scrap recycling process is “greener” than virgin steel prod
Slide 33: Highlights and Recent Developments: Real Estate
Highlights and Recent Developments Business strategy is based on long - term investment outlook and operational expertise Approximately $0.2 million gain from sale of land for the nine months ended September 30, 2016 and approximately $39 million gain from sale of 14 rental properties and Oak Ha
Slide 34: Highlights and Recent Developments: Mining
Highlights and Recent Developments IEP acquired a controlling interest in Ferrous Resources on June 8, 2015 through a tender offer to purchase any and all of the outstanding shares. ─ Prior to the tender offer, IEP owned 14% of the company’s outstanding common stock and as of September 30, 2016 ow
Slide 35: Highlights and Recent Developments: Home Fashion
Highlights and Recent Developments One of the largest providers of home textile goods in the United States Largely completed restructuring of manufacturing footprint ─ Transitioned majority of manufacturing to low cost plants overseas Streamlined merchandising, sales and customer service divis
Slide 36: EBITDA Reconciliation
EBITDA Reconciliation 36
Slide 37: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation 37 ($ Millions) Twelve Months Ended September 30, 2013 2014 2015 2015 2016 2016 (unaudited) Adjusted EBITDA attributable to Icahn Enterprises: Net income (loss) $1,025 ($373) ($1,194) ($67) ($922) ($2,049) Interest expense, net 464 614 762 563 468 667 Income
Slide 38: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2016
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2016 ($Millions) 38 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($972) $103 ($588) ($13) $123 ($69) ($21)
Slide 39: Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2015
Adjusted EBITDA Reconciliation by Segment – Nine Months Ended September 30, 2015 ($Millions) 39 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($263) $0 $347 ($22) $154 $33 ($13) $2 $55
Slide 40: Adjusted EBITDA Reconciliation by Segment – LTM Ended September 30, 2016
Adjusted EBITDA Reconciliation by Segment – LTM Ended September 30, 2016 ($Millions) 40 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($2,374) ($249) ($928) ($42) $182 ($64) ($203) $3
Slide 41: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015 ($Millions) 41 Investment Automotive Energy Metals Railcar Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($1,665) ($352) $7 ($51) $213 $38 ($195) ($3) $61
Slide 42: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014 ($Millions) 42 Investment Automotive Energy Metals Railcar Gaming Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($684) ($90) $168 ($25) $188 $269 $9 $22 $2 ($388) ($529)
Slide 43: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2013
Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2013 ($Millions) 43 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 ($16) ($374) $2,4
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