Timeless Principles, Constant Reinvention COMPANY OVERVIEW OCTOBER 2013
Roadmap Loews Corporation acts as a patient value investor, supported by great underlying businesses Philosophy: long-term, value focused Structure: diversified holding company; three public and two Loews wholly owned subsidiaries…
Advantageous structure for creating shareholder value Freedom to invest across industries, a patient, long-term view, flexibility, and transparency under one class of stock Loews owns: 90%1 50.4%1 51% L.P. interest1 100% 100% 2%…
Experienced leadership, with average tenure at Loews 20 years Office of the President James S. Tisch Andrew H. Tisch Jonathan M. Tisch President, Co-Chairman of Co-Chairman of Chief Executive the Board, the Board, Officer Chairman…
Loews creates value through effective capital allocation 1 2 3 4 Repurchase Invest in our Make Build our Loews shares subsidiaries opportune capital position acquisitions 6
Loews criteria for potential acquisitions Businesses with long term staying power that thrive through cycles Undervalued assets with ability to generate strong cash flow Open to most industries but tends to avoid those with…
Working with our subsidiaries While each subsidiaries' experienced management team guides day-to-day operations, Loews gets involved in the following: Major capital Mid to long term Hiring of senior allocation strategy management…
Loews has successfully built shareholder value for over 50 years Over the past 50 years, Loews common stock has posted a compound annual growth rate of approximately 15%, compared with an approximate 6% growth rate for the S&P 500…
Loews creates value through effective capital allocation History of shares buybacks enhances the long-term value of Loewss common stock Shares outstanding since 1971 Repurchasing our 1971 2013 shares over the past four decades has…
We have not been standing still Since 2010 Loews and our subsidiaries have committed to capital projects and acquisitions totaling more than 7 billion Growing in new geographies and markets through acquisitions Bought in minority public…
Opportune transactions: case studies Loews acquired Diamond and Boardwalk through a series of strategic acquisitions Diamond Offshore Boardwalk Pipeline 1989 - Loews purchased 2003 - Loews purchased Texas Gas Diamond M for 65 million…
Subsidiaries provide dividends to Loews Cumulative dividends since 2006 ( in millions) 2,391 2012 2,146 2011 1,901 DO 1,533 2010 972 543 2009 140 2008 1,553 2007 1,260 986 2006 BWP 725 454 273 117 436 291 194 CNA 194…
Asset Value Exceeds Stock Price Sum of Loewss public and non-public assets exceeds Loewss stock price Public Assets Non-Public Assets Cash & Investments (net of debt): 7.88 CNA: 23.91 Loews Hotels 52.93 + HighMount compared…
Roadmap Loews Corporation acts as a patient value investor, supported by great underlying businesses Philosophy: long-term, value focused Structure: diversified holding company; three public and two Loews wholly owned subsidiaries…
CNA Financial Company Snapshot Commercial insurance writer with more than 115-year history Business mix is approximately 45% specialty lines, 55% commercial Run-off CNA CNA Hardy Operations lines (Life, Group, Specialty Commercial…
CNAs Strategic Direction Revisited and Reinforced Broad based strategy to differentiate CNA Operating Priorities Financial Priorities Accelerate development and further Deliver solid operating income deepen industry-specific…
Insurance Market Premium rates for many commercial P&C insurers stabilized and began improving during 2011 and has continued CNA property & casualty rates Rate increases help offset recent challenges faced by P&C Specialty Commercial…
CNA Financial Highlights P&C Ops Underlying Loss Ratio1 Net Income (M) 69.6% 691 69.2% 612 628 68.8% 418 67.7% FY 2009 FY 2010 FY 2011 FY 2012 FY 2009 FY 2010 FY 2011 FY 2012 P&C Ops Combined Ratio1 Book Value Per Common…
Roadmap Loews Corporation acts as a patient value investor, supported by great underlying businesses Philosophy: long-term, value focused Structure: diversified holding company; three public and two Loews wholly owned subsidiaries…
Diamond Offshore Drilling Company Snapshot Diamond Offshore Fleet Provides drilling services to the energy industry globally Leader in deepwater drilling Jack-up Drillships Rigs (7) Semisubmersible Rigs (33) (5) 0 5th largest…
Diamonds Strategy Flexible, conservative asset management Take advantage of cyclicality of industry to acquire rigs Since 2009, Diamond has made commitments to purchase or rebuild 10 units for about 5 billion Ocean Valor & Ocean…
Offshore Drilling Market Demand for ultra-deepwater units in Ultra-Deepwater Dayrates - Worldwide West Africa, Brazil, U.S. Gulf of Mexico and other regions has led to (in thousands) tight markets Dayrates for UDW approach 600,000…
Diamond Offshore Performance Return on capital employed (Average 2008-2012) Diamond Offshores return on 30% 27.3% capital employed of 27.3% from 25% 2008 to 2012 is the highest in the 20% industry (Source: Credit Suisse) 15% 10%…
Roadmap Loews Corporation acts as a patient value investor, supported by great underlying businesses Philosophy: long-term, value focused Structure: diversified holding company; three public and two Loews wholly owned subsidiaries…
Boardwalk Pipelines Company Snapshot Loews Transportation, storage, gathering Corporation & processing of natural gas and NGLs 51% L.P. interest Carried approximately 12% of the 2% G.P. interest* nations average daily consumption…
Boardwalk Strategy Boardwalk is steadily advancing plans to generate growth by: Leveraging its core pipeline and storage assets Diversifying its services and expanding its geographic footprint Controlling its cost structure…
Natural Gas Market After remaining relatively flat for U.S. Demand for Natural Gas nearly a decade, demand for 100.0 natural gas is expected to 90.0 2.1% CAGR increase by 2.1% annually 80.0 0.6% CAGR 70.0 between 2012 and…
Boardwalk Performance Annual distributions per unit Since the IPO in 2005, a cash distribution paid 2.105 2.130 each quarter 2.050 1.970 Since 2007, EBITDA and distributable cash 1.890 flow increased at compound annual growth rates…
Roadmap Loews Corporation acts as a patient value investor, supported by great underlying businesses Philosophy: long-term, value focused Structure: diversified holding company; three public and two Loews wholly owned subsidiaries…
HighMount Exploration & Production Company Snapshot 2012 Production by Component Exploration, development, and production of oil and Natural Gas, 70% gas 1.1 million gross acres in West Natural Gas Liquids, 25% Texas and…
HighMount Strategy Diversify business by acquiring Areas of Operation and developing acreage with liquids-rich resources, which currently offer better returns than natural gas Leveraging acreage position in the Wolfcamp Continued…
Roadmap Loews Corporation acts as a patient value investor, supported by great underlying businesses Philosophy: long-term, value focused Structure: diversified holding company; three public and two Loews wholly owned subsidiaries…
Loews Hotels & Resorts Company Snapshot In 2012, Chain-wide RevPAR grew by 8%, significantly outperforming the U.S. industry 19 hotels in U.S. and Canada average Unique, local experience Growth in Revenue Per Available Room Looking…
Loews Hotels & Resorts Strategy Over the next several years, Loews Hotels Chain Expansion & Resorts expects to broaden its Loews Boston Back Bay, MA The Madison Hotel, DC customer base by: Acquired in Feb 2013 Acquired in December…
Map of Loews Hotels & Resorts Locations Quebec City Montreal Boston Chicago New York Philadelphia Annapolis Washington D.C. Hollywood Nashville Santa Monica Under Development New Acquisitions San Diego Tucson Atlanta…
In Summary Patient Value Investors Effective capital allocation Financial strength Long-term value Conservative management creation Great underlying businesses 38
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