Icahn Enterprises L.p. · NASDAQ:IEP
Icahn Enterprises L.p — Investor Presentation (March 2017)
34 slides from Icahn Enterprises L.p's investor presentation, Mar 17, 2017
Slide 1: Icahn Enterprises L.P. Investor Presentation March 2017
Icahn Enterprises L.P. Investor Presentation March 2017
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-LookingStatements Thispresentationcontainscertainstatementsthatare,ormaybedeemedtobe,“forward-lookingstatements”withinthemeaningofSection27Aofthe SecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended.
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, Gaming, Mining, Railcar, Food Packaging, Metals, Real Estate and Home Fashion IEP is majority owned and controlled by Carl Icahn – Over the last severa
Slide 5: 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. Icahn Enterprises G.P. Inc. Icahn Enterprises L.P. (NasdaqGS: IEP) Icahn Enterprises Holding
Slide 6: 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 7: History of acquiring undervalued assets and growing diversified portfolio
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 December 31, 2016 IEP has demonstrated a history of successfully acquiring undervalued assets and improving and e
Slide 8: 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 9: 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, engineeringand R&D, and
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: Investment Segment: Highlights and Recent Developments
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 13: Energy Segment: Highlights and Recent Developments
Highlights and Recent Developments Strategic location and complex refineries allows CVR to benefit from access to price advantaged crude oil CVR Partners acquired an additional fertilizer plant in April 2016, giving it geographic and feed stock diversity CVR Energy has annualized dividends of
Slide 14: CVR Refining, LP
Gasoline 51.9% Distillate 40.6% Other 7.5% 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 - Access to mid-continent local and Canadian crude oils - Markets its products in a
Slide 15: CVR Partners, LP
CVR Partners, LP (NYSE:UAN) On April 1, 2016, CVR Partners acquired an East Dubuque, IL fertilizer plant - Acquisition provides geographic and feed stock diversity Attractive market dynamics for nitrogen fertilizer - Global fertilizer demand has historically increased in-line with population and
Slide 16: Segment: Automotive
Segment: Automotive Company Description We conduct our Automotive segment through Federal-Mogul Holdings, Pep Boys and IEH Auto Parts Holding Federal-Mogul operates with two end-customer focused businesses. The Powertrain business focuses on original equipment powertrain products for automotive
Slide 17: Federal-Mogul Corp.'s Leading Market Position
Federal-Mogul Corp.’s Leading Market Position 17 Powertrain Motorparts ProductLine Market Position ProductLine Market Position Pistons #1 in diesel pistons #2acrossall pistons Engine #1 Global Rings& Liners Market leader SealingComponents #1 Global ValveSeats and Guides Market leader Brake Pads / Co
Slide 18: Railcar Segment: Highlights and Recent Developments
Highlights and Recent Developments On December 19, 2016, IEP entered an agreement to sell ARL to SMBC Rail Services LLC for cash based on a total enterprise value of $3.364 billion (subject to certain adjustments) - Initial closing on approximately 29,000 railcars for $2.778 billion expected to cl
Slide 19: 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 customerneeds - Utilize sophisticated custo
Slide 20: 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 - Majority of revenues from emerging markets - In 2012, Viskase completed a new finishing center in the Philippines and expanded its capacity in Brazil - In 2016 a
Slide 21: Metals Segment: Highlights and Recent Developments
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 22: 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 $100bn market cap, A-credit) for two large buildings with leases through 2020 –2021 - 13 legacy
Slide 23: Mining Segment: Highlights and Recent Developments
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 December 31, 2016 own
Slide 24: 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 25: Financial Performance
Financial Performance 25
Slide 26: Financial Performance
Financial Performance Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises 26 ($373) ($1,194) ($1,128) FYE 2014 FYE 2015 FYE 2016 $1,018 $930 $842 FYE 2014 FYE 2015 FYE 2016 ($Millions) ($ in millions) 2014 2015 2016 ($ in millions) 2014 2015 2016 Net
Slide 27: Consolidated Financial Snapshot
Consolidated Financial Snapshot ($Millions) 27 2014 2015 2016 Net Income (Loss): Investment ($684) ($1,665) ($1,487) Automotive (90) (352) 77 Energy 168 7 (604) Metals (25) (51) (20) Railcar 188 213 183 Gaming 269 38 (95) Mining 0 (195) (24) Food Packaging 9 (3) 8 Real Estate 22 61 12 Home Fashion 2
Slide 28: Strong Balance Sheet
Strong Balance Sheet ($Millions) 28 InvestmentAutomotive Energy Railcar Gaming Metals Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Assets Cash and cash equivalents $13 $353 $736 $179 $244 $4 $14 $39 $24 $2 $225 $1,833 Cash held at consolidated affiliated partnerships a
Slide 29: IEP Summary Financial Information
IEP Summary Financial Information Significant Valuation demonstrated by market value of IEP’s public subsidiaries and Holding Company interest in Funds and book value or market comparables of other assets 29 ($ Millions) Note: Indicative net asset value does not purport to reflect a valuation of I
Slide 30: Appendix—Adjusted EBITDA Reconciliations
Appendix—Adjusted EBITDA Reconciliations 30
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures 31 TheCompanyusescertainnon-GAAPfinancialmeasuresinevaluatingitsperformance.Theseincludenon-GAAPEBITDAandAdjustedEBITDA.EBITDArepresentsearningsbeforeinterest expense,incometax(benefit)expenseanddepreciationandamortization.WedefineAdjustedEBITDAasEBITDAexcludingtheeffects
Slide 32: 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 Gaming Mining Food Packaging Real Estate Home Fashion Holding Company Consolidated Adjusted EBITDA: Net income (loss) ($1,487) $77 ($604) ($20) $183 ($95) ($24) $8 $12 (
Slide 33: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2015
Adjusted EBITDA Reconciliation by Segment –Year Ended December 31, 2015 ($Millions) 33 Investment Automotive Energy Metals Railcar 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) $61 (
Slide 34: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2014
Adjusted EBITDA Reconciliation by Segment –Year Ended December 31, 2014 ($Millions) 34 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)
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