Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Debt Investor Presentation (July 2013)
39 slides from Icahn Enterprises L.p's debt investor presentation, Jul 29, 2013
Slide 1: Icahn Enterprises L.P. Investor Presentation July 2013
Icahn Enterprises L.P. Investor Presentation July 2013
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward - Looking Statements and Non - GAAP Financial Measures i 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
Slide 3: Executive Summary
Executive Summary SS
Slide 4: Executive Summary
Executive Summary ($Millions) Icahn Enterprises L.P. (“IEP” or the “Company”) is a diversified holding company, with global businesses in Investment, Automotive, Energy, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion – Total equity market capitalization of approximately $8.0 b
Slide 5: Summary of Terms
Summary of Terms Issuers Icahn Enterprises L.P. and Icahn Enterprises Finance Corp. (“IEP” or the “Company”). Issue $350.0 million Senior Unsecured Notes. Term 7 years . Placement Type 144A and Regulation S Private Placement with Registration Rights. Use of Proceeds General corporate purposes. Guara
Slide 6: As Adjusted Capitalization and Credit Statistics
As Adjusted Capitalization and Credit Statistics (1) Adjusted from March 31, 2013 to reflect $ 516 million in dividends from CVR, plus $120 million net proceeds from the June 17, 2013 depositary unit offering, less the $62 million CVRR share pur cha se, less the $434 million investment in the FDML r
Slide 7: Company Overview
Company Overview SS
Slide 8: Overview of Icahn Enterprises
Overview of Icahn Enterprises Icahn Enterprises L.P . (“IEP” or the “Company”) is a diversified holding company with operating segments in Investment, Automotive , Energy, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion IEP is majority owned and controlled by Carl Icahn – Over
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: History of acquiring undervalued assets and diversified portfolio
IEP began as American Real Estate Partners, which was founded in 1987, and has grown its diversified portfolio to nine operating segments and over $26 billion of assets as of March 31, 2013 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and enhancing their
Slide 11: Deep Team Led by Carl Icahn
Deep Team Led by Carl Icahn Led by Carl Icahn ─ Substantial investing history provides IEP with unique network of relationships and access to Wall Street Team consists of nearly 20 professionals with diverse backgrounds ─ Well rounded team with professionals focusing on different areas such as equit
Slide 12: Overview of Operating Segments
Overview of Operating Segments 12
Slide 13: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments Since inception in November 2004, the Investment Funds' gross return is 206.4%, representing an annualized rate of return of 13.7% through July 26, 2013 ─ Year - to - date returns of approximately 12.3% as of July 26, 2013 Long history of investing in public equity
Slide 14: Significant Holdings
Significant Holdings As of July 26 , 2013 (4) As of December 31, 2012 (4) As of December 31, 2011 (4) Company Mkt. Value ($mm) (5) % Ownership (6) Company Mkt. Value ($mm) (5) % Ownership (6) Company Mkt. Value ($mm) (5) % Ownership (6) $1,973 8.7% $1,083 11.5% $1,920 9.4% $1,365 9.4% $992 9.0% $1,7
Slide 15: Energy: 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, trans
Slide 16: CVR Refining Recent Developments and Company Highlights
Sweet 80.4% Medium 7.6% Heavy Sour 12.0% Gasoline 47.8% Distillate 40.8% Other 11.5% Recent Developments CVRR announced preliminary Q2 2013 results ─ Net Sales of $2,130 – 2,145 million / Adj. EBITDA of $245 – 255 million $1.35 per unit cash distribution for Q2 2013; 2013 full year distribution outl
Slide 17: CVR Partners Recent Developments
Recent Developments CVR Partners announced preliminary Q2 2013 results ─ Net sales of $85 – 90 million / Adj. EBITDA of $43.5 – 44.5 million Q2 cash distribution of $0.583 per unit 2013 full year distribution outlook of $1.80 – 2.00 per unit Company Highlights Attractive market dynamics for nitrogen
Slide 18: Automotive: Historical Segment Financial Summary
Historical Segment Financial Summary Automotive Segment FYE December 31, LTM ($ millions) 2010 2011 2012 3/31/2013 Select Income Statement Data: Total revenues 6,239$ 6,937$ 6,677$ 6,583$ Adjusted EBITDA 661 688 508 484 Net income 160 168 (22) (89) Adjusted EBITDA attrib. to IEP 499$ 518$ 386$ 367$
Slide 19: Federal-Mogul Leading Market Positions
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 20: Railcar: Highlights and Recent Developments
Highlights and Recent Developments ARI reported strong Q2 results ─ $159 million of revenue and $43 million of Adjusted EBITDA ─ Approximately 6,900 railcar backlog into 2014 as of June 30, 2013 ─ $1.00 annualized dividend ARI manufacturing segment strong Tank demand from increasing crude oil produc
Slide 21: Gaming: 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 custom
Slide 22: Food Packaging: 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 ─ S ales to emerging economies have grown on average 13% per year since 2007 and, in 2012, accounted for almost 50% of total company sales compared to 36% in 2007 ─
Slide 23: Metals: Highlights and Recent Developments
Highlights and Recent Developments Global demand for steel and other metals drives demand for U.S. scrap exports PSC is in attractive regional markets ─ $1.8 billion of steel capacity additions in PSC’s geographic area including : V&M Star ($1.0 b illion ), Republic ($ 85 million), US Steel ($500 mi
Slide 24: Real Estate: 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 (~$190bn market cap, A - credit) for two large buildings with leases through 2020 – 2021 ─ 27 additiona
Slide 25: Home Fashion: 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 in Bahrain and Pakistan Streamlined merchandising, sales and customer serv
Slide 26: Financial Performance
Financial Performance 26
Slide 27: Financial Performance
Financial Performance Adjusted EBITDA Attributable to Icahn Enterprises Equity Attributable to Icahn Enterprises 27 $939 $1,547 $1,542 $1,950 2010 2011 2012 LTM 3/31/13 $3,183 $3,755 $4,669 $5,068 2010 2011 2012 3/31/2013 LTM ($ in millions) 2010 2011 2012 3/31/2013 Investment 342$ 876$ 158$ 359$ Au
Slide 28: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 28 2010 2011 2012 3/31/2012 3/31/2013 Revenues: Investment 887$ 1,896$ 398$ 71$ 603$ 930$ Automotive 6,239 6,937 6,677 1,774 1,680 6,583 Energy - - 5,519 - 2,338 7,857 Gaming 78 624 611 153 143 601 Railcar 270 514 657 182 138 613 Food Packaging 317 338 341
Slide 29: Strong Balance Sheet
Strong Balance Sheet As of March 31, 2013 Food Real Home Holding Investment Automotive Energy Metals Railcar Gaming Packaging Estate Fashion Company Consolidated Total Assets: Cash and Cash Equivalents: 2$ 269$ 1,041$ 16$ 57$ 241$ 18$ 26$ 12$ 755$ 2,437$ Cash at Partnerships and Restricted Cash 766
Slide 30: IEP Summary Financial Information
IEP Summary Financial Information (1) Represents Investment segment equity attributable to us as of the respective dates indicated. (2) Based on closing share price as of the respective dates indicated and the number of shares owned by the Holding Company on such date. The Holding Company owned (a)
Slide 31: 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) (1) Adjusted from March 31, 2013 to reflect net proceeds from the new $350 million Senior Notes, plus the $5
Slide 32: Appendix — EBITDA Reconciliation
Appendix — EBITDA Reconciliation 32
Slide 33: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation 33 ($Millions) Twelve Months Ended March 31, 2010 2011 2012 2012 2013 2013 Attributable to Icahn Enterprises Net income 199$ 750$ 396$ 49$ 277$ 624$ Interest expense, net 338 377 456 103 119 472 Income tax expense (benefit) 11 27 (128) (36) 93 1 Depreciation
Slide 34: EBITDA Reconciliation by Segment – FYE 2012
EBITDA and Adjusted EBITDA Reconciliation by Segment – FYE 2012 34 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 157$ (24)$ 263$ 21$ 29$ 4$ (58)$ 19$ (27)$ 12$ 396$ Inte
Slide 35: EBITDA Reconciliation by Segment – FYE 2011
EBITDA and Adjusted EBITDA Reconciliation by Segment – FYE 2011 35 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 868$ 121$ -$ 13$ 2$ 4$ 6$ 18$ (56)$ (226)$ 750$ Interest
Slide 36: EBITDA Reconciliation by Segment – FYE 2010
EBITDA and Adjusted EBITDA Reconciliation by Segment – FYE 2010 36 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income 340$ 116$ -$ -$ (15)$ 10$ 4$ 8$ (42)$ (222)$ 199$ Interest expe
Slide 37: EBITDA Reconciliation by Segment – Q1 13
EBITDA and Adjusted EBITDA Reconciliation by Segment – Q1 2013 37 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 233$ (29)$ 151$ 3$ 1$ 2$ (6)$ 5$ (3)$ (80)$ 277$ Interest
Slide 38: EBITDA Reconciliation by Segment – Q1 12
EBITDA and Adjusted EBITDA Reconciliation by Segment – Q1 2012 38 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 31$ 23$ -$ 8$ 7$ 1$ (2)$ 5$ (9)$ (15)$ 49$ Interest expen
Slide 39: EBITDA Reconciliation by Segment – LTM Q1 2013
EBITDA and Adjusted EBITDA Reconciliation by Segment – LTM Q1 2013 39 ($Millions) Investment Automotive Energy Gaming Railcar Food Packaging Metals Real Estate Home Fashion Holding Company Total Attributable to Icahn Enterprises Net income (loss) 359$ (76)$ 414$ 16$ 23$ 5$ (62)$ 19$ (21)$ (53)$ 624$
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