Slide 1: Icahn Enterprises L.P. Investor Presentation August 2021
Icahn Enterprises L.P. Investor Presentation August 2021 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
2 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
Slide 3: Company Overview
Company Overview 3
Slide 4: Overview of Icahn Enterprises
4 Overview of Icahn Enterprises (1) Investment segment total assets represents total equity (equity attributable to IEP was $4.7 billion). (2) Pharma segment results are for the period beginning December 11, 2020. • Icahn Enterprises L . P . (IEP) is a diversified holding company with operating segm
Slide 5: Summary Corporate Organizational Chart
5 Summary Corporate Organizational Chart Note: Percentages denote equity ownership as of June 30, 2021. Excludes intermediary and pass - through entities. CVR Energy , Inc. (NYSE:CVI) WestPoint Home LLC PSC Metals LLC AREP Real Estate Holdings, LLC Icahn Enterprises G.P. Inc. Icahn Enterprises L.P.
Slide 6: Diversified Subsidiary Companies with Significant Inherent Value
6 Diversified Subsidiary Companies with Significant Inherent Value • IEP’s subsidiary companies possess key competitive strengths and/or leading market positions. • IEP seeks to create incremental value by investing in organic growth and targeting businesses that offer consolidation opportunities .
Slide 7: Evolution of Icahn Enterprises
7 Evolution of Icahn Enterprises • IEP began as American Real Estate Partners, which was founded in 1987, and now has diversified its portfolio to eight operati ng segments and approximately $28 billion of assets as of June 30, 2021. • IEP has demonstrated a history of successfully acquiring underva
Slide 8: Ability to Maximize Shareholder Value Through Proven Activist Strategy
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 ch
Slide 9: Deep Team Led by Carl Icahn
9 Deep Team Led by Carl Icahn • Led by Carl Icahn • Substantial investing history provides IEP with a unique network of relationships and access to Wall Street. • Team consists of professionals with diverse backgrounds • Well rounded team with professionals focusing on different areas such as equity
Slide 10: Overview of Operating Segments
Overview of Operating Segments 10
Slide 11: Investment Segment: Highlights and Recent Developments
Highlights and Recent Developments • Since inception in 2004 through June 30, 2021, the Investment Funds’ cumulative return was approximately 91.3%, representing an annualized rate of return of approximately 3.9%. • Long history of investing in public equity and debt securities and pursuing activist
Slide 12: Energy Segment: Highlights and Recent Developments
Highlights and Recent Developments • During Q2 2021, CVR p aid a special dividend comprised of $241 million in cash as well as the common stock of Delek US Holdings, Inc with a fair value of $251 million. Our portion of the dividend included $171 million in cash and the common stock of Delek with a
Slide 13: Automotive Segment: Highlights and Recent Developments
Highlights and Recent Developments • Icahn Automotive is implementing a multi - year plan to separate its aftermarket parts and automotive services businesses into two separate operating companies. Our Automotive segment's priorities include: • Positioning the services business to take advantage of
Slide 14: 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 • Developed markets remain a steady source of income. • Distribution channels to certain customers spanning more than
Slide 15: Metals Segment: Highlights and Recent Developments
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 furnaces drive scrap demand and are significantly more energy efficient than blast furnaces. • El
Slide 16: Real Estate Segment: Highlights and Recent Developments
Highlights and Recent Developments • Business strategy is based on long - term investment outlook and operational expertise. Investment Property Operations • Maximize value of commercial lease portfolio through effective management of existing properties • Seek to sell assets on opportunistic basis
Slide 17: Home Fashion Segment: Highlights and Recent Developments
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
Slide 18: Pharma Segment: Highlights and Recent Developments
Highlights and Recent Developments • In December 2020, we acquired all of the outstanding common stock of Vivus upon its emergence from bankruptcy. Prior to Vivus ’ emergence from bankruptcy, we held an investment in all of Vivus ’ convertible corporate debt securities, as well as all of its other o
Slide 19: Financial Performance
Financial Performance 19
Slide 20: Financial Performance: Net Income and Adjusted EBITDA
20 Financial Performance Net Income (Loss) Attributable to Icahn Enterprises Adjusted EBITDA Attributable to Icahn Enterprises ($Millions) Investment $319 ($775) ($765) $141 Energy 213 246 (194) (171) Automotive (230) (197) (198) (159) Food Packaging (12) (17) 4 5 Metals 5 (22) - 25 Real Estate 112
Slide 21: Consolidated Financial Snapshot
21 Consolidated Financial Snapshot Net Income (Loss): Investment $679 ($1,543) ($1,447) ($754) $1,007 $314 Energy 334 314 (327) (116) (81) (292) Automotive (230) (197) (198) (123) (84) (159) Food Packaging (15) (22) 4 (1) 1 6 Metals 5 (22) - (13) 12 25 Real Estate 112 16 (16) (12) (5) (9) Home Fashi
Slide 22: Strong Balance Sheet
22 Strong Balance Sheet ASSETS Cash and cash equivalents $16 $519 $53 $9 $0 $35 $4 $9 $1,549 $2,194 Cash held at consolidated affiliated partnerships and restricted cash 1,218 7 18 - 2 11 - - 13 1,269 Investments 10,603 85 19 - - 15 - - 181 10,903 Accounts receivable, net - 234 105 93 89 10 40 25 -
Slide 23: IEP Summary Financial Information
23 IEP Summary Financial Information Note: Indicative net asset value does not purport to reflect a valuation of IEP. The calculated Indicative net asset value d oes not include any value for our Investment Segment other than the fair market value of our investment in the Investment Funds. A valuati
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 24
Slide 25: Non-GAAP Financial Measures
25 Non - GAAP Financial Measures 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 a
Slide 26: Adjusted EBITDA Reconciliation by Segment – LTM June 30, 2021
26 Adjusted EBITDA Reconciliation by Segment – Last Twelve Months Ended June 30, 2021 (1) Pharma segment results are for the period beginning December 11, 2020. Net income (loss) $314 ($292) ($159) $6 $25 ($9) ($10) $5 ($369) ($489) Interest expense, net 219 123 11 7 1 - 1 - 326 688 Income tax expen
Slide 27: Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2021
27 Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2021 Net income (loss) $1,007 ($81) ($84) $1 $12 ($5) ($6) $6 ($313) $537 Interest expense, net 117 61 6 3 1 - 1 - 162 351 Income tax expense (benefit) - (56) (23) 3 - - - - 152 76 Depreciation, depletion and amortization - 170
Slide 28: Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2020
28 Adjusted EBITDA Reconciliation by Segment – Six Months Ended June 30, 2020 Net income (loss) ($754) ($116) ($123) ($1) ($13) ($12) ($3) $0 ($420) ($1,442) Interest expense, net 94 59 7 7 1 - 1 - 164 333 Income tax expense (benefit) - (50) (31) 2 - - - - 27 (52) Depreciation, depletion and amortiz
Slide 29: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2020
29 Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2020 (1) Pharma segment results are for the period beginning December 11, 2020. Net income (loss) ($1,447) ($327) ($198) $4 $0 ($16) ($7) ($1) $0 $0 ($476) ($2,468) Interest expense, net 196 121 12 11 1 - 1 - - - 328 670 Income t
Slide 30: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019
30 Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2019 Net income (loss) ($1,543) $314 ($197) ($22) ($22) $16 ($17) $0 $311 $0 ($599) ($1,759) Interest expense, net 106 102 20 17 1 (1) 1 - 3 - 296 545 Income tax expense (benefit) - 112 (55) 6 - (6) - - 1 - (38) 20 Depreciation,
Slide 31: Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018
31 Adjusted EBITDA Reconciliation by Segment – Year Ended December 31, 2018 Net income (loss) $679 $334 ($230) ($15) $5 $112 ($11) $0 $1 $1 ($639) $237 Interest expense, net 46 102 16 15 - 1 1 - 2 - 328 511 Income tax expense (benefit) - 46 (52) (4) 1 5 - - 2 2 (14) (14) Depreciation, depletion and