Q4 2016 Real-Time Call Brief

Highlights

Net loss attributable to Icahn enterprises for 2016 was $1.1 billion or $8.07 per LP unit, compared to adjusted net loss of $1.2 billion or $9.29 per LP unit in 2015.

For Q4, 2016, the net loss attributable to Icahn Enterprises was $206 million as compared to a net loss $1.1 billion in the prior year period.

Adjusted EBITDA attributable to Icahn Enterprises for 2016 was $842 million compared to approximately $930 million in 2015.

For the fourth quarter of 2016, indicative net asset value increased by $1.4 billion to $5.6 billion compared to $4.2 billion as of September 30 of the 2016.

Our investment fund had a negative return of 8.7% in the fourth quarter of 2016 and a negative return of 20.3% for the full year of 2016.

Net sales for our automotive segment in Q4 2016 were $2.3 billion compared to $2 billion in the prior year period.

This 16% net sales increase was primarily due to the Q1 2016 acquisition of Pep Boys.

Net sales for full year 2016 were $9.4 billion or 21% above 2015 results.

In January 2017, Icahn enterprises purchased the 18% of Federal Mogul, not already owned for a total consideration of $305 million.

Federal Mogul is now a private company 100% owned by Icahn Enterprise.

In our energy segment, our Q4 2016 net sales were $1.4 billion.

Consolidated adjusted EBITDA was $43 million.

CBR Refining posted solid operational performance during the quarter with combined throughput of 207,000 barrels per day.

In December of 2016 IEP announced the sale of American Railcar Leasing.

The transaction values the business at approximately $3.4 billion.

The initial sale of approximately 29,000 railcars is expected to close in the second quarter of 2017 and generate net proceeds of approximately $1.1 billion.

We have the ability to sell an additional 4800 railcars for up to three years upon meeting certain conditions for a value of an additional $586 million as of the initial closing date.

Subsequent to year end IEP issued approximately 1.2 billion of new senior unsecured notes maturing in 2022 and 2024 to refinance the 2017 notes that were maturing Q1 of 2017.

Yesterday, we announced the completion of our previously announced equity rights offering which raised proceeds of $600 million to support IEP's credit rating and to bolster the holding company's liquidity position.

In Q4 2016 the net loss attributable to Icahn Enterprises was $206 million compared to a net loss of $1.1 billion in the prior year period.

Full year net loss attributable to Icahn Enterprises for 2016 was $1.1 billion or $8.07 per LP unit compared to a net loss of $1.2 billion or $9.29 per LP unit in the prior year period.

Adjusted EBITDA attributable to Icahn Enterprises for Q4 2016 was $153 million compared to a loss of $239 million in Q4 2015.

For the full year 2016, we had a net loss attributable to IEP of $1.1 billion, compared to a net loss of $1.2 billion in 2015.

Adjusted EBITDA attributable to Icahn Enterprises for 2016 was $842 million compared to $930 million for 2015.

Our investment segment had a loss attributable to Icahn Enterprises of $158 million for Q4 2016 and the loss of $604 million for the full year.

The investment funds had a loss of 8.7% in Q4 2016 compared to a loss of 15.6% in Q4 2015.

Long positions gained 1.3% for the current quarter while short positions and other expenses had a negative performance attribution of 10%.

For the full year 2016, the investment segment lost 20.3% compared to an 18% loss for 2015.

Long positions had a 16.3% gains for the full year ‘16 while short positions and other expenses had negative performance attribution of 36.6%.

Since inception in November 2004 through the end of 2016, the investment funds gross return is 116% or or 6.5% annualized.

At the end of 2016, the funds were net short 128%, compared to net short 25% at the end of the 2015.

IEP's investment in the funds was $1.7 billion as of December 31, 2016.

In Q1 2017, we redeemed $300 million from the funds to help fund the purchase the Federal Mogul shares.

For Q4 2016, our energy segment reported revenues of $1.3 billion, and consolidated adjusted EBITDA of $43 million, compared to revenues of $1 billion, and consolidated adjusted EBITDA of $53 million for the prior year period.

For the full year 2016 the energy segment reported revenues of $4.8 billion in consolidated adjusted EBITDA of $313 million compare to revenue of $5.4 billion in consolidated adjusted EBITDA of $755 million in ‘15.

CVR Refining reported Q4, 2016 adjusted EBITDA of $28 million compare to $16 million in the prior year period.

Oil throughput barrel, a non-GAAP financial measure, was $7.32 in Q4 ‘16, compared to $8.96 in the prior year period.

CVR Partners reported Q4 2016 adjusted EBITDA of $18 million, compared to $28 million in Q4 2015.

Our Automotive segment's Q4 2016 net sales were of $2.3 billion up 16% from the prior year period.

Net sales for the full year 2016, were $9.4 billion or 21% above the 2015 results.

Federal Mogul on a standalone basis reported Q4 net sales of $1.8 billion which was consistent with the comparable prior year period.

Higher OE sales were offset by lower aftermarket sales in North America and $27 million of negative impact from currency exchange rate fluctuations.

Operational EBITDA in Q4 2016 was $182 million up $18 million or 11% compared to Q4 2015.

For the full year Federal Mogul generated $7.4 billion of net sales and $744 million of operational EBITDA a 16% increase from 2015.

IEP acquired remaining non-controlling interest of Federal-Mogul during Q1 2017 for total consideration of $305 million.

IEH Auto and Pep Boys together had Q4 2016 revenue of approximately $638 million and adjusted EBITDA $14 million.

For the full year, which includes approximately 11 months of Pep Boys.

IEH Auto and Pep Boys generated 42.5 billion of sales and $103 million in adjusted EBITDA.

Also we completed an acquisition of 134 location chain in January 2017 and maintained an active pipeline of additional acquisition opportunities.

Our Railcar segment had railcar shipments in 2016 of 4,721 rail cars, including 799 rail cars to leasing customers, as compared to 8,903 rail cars for the prior year period, of which 5,063 rail cars were the leasing customers.

As of December 31, 2016, ARI had a backlog of 3,813 rail cars, including 1,637 rail cars for lease customers.

According to the railway supply institute, the rail car manufacturing backlog has decreased from a record level of 143,000 rail cars at the end of 2014, down to approximately 67,000 rail cars at the end of 2016.

Adjusted EBITDA attributable to IEP for the railcar segment was $379 million in 2016 compare to $318 million for the prior year period.

For the full year 2016 we have recorded a lost contingency of $16 million to cover the cost associated with the new directive.

The initial sales of approximately 20,000 rail cars is expected to generate $1.1 billion of net proceeds.

Total gaming segment operating revenues were $944 million in 2016, compared to $811 million in 2015.

The increase was primarily due to an increase in consolidated gaming volumes of 17%.

For 2016, we recorded impairments to the property and associated intangibles of approximately $106 million.

Our gaming segments consolidated adjusted EBITDA for 2016 was $118 million while EBITDA was roughly flat at Tropciana overall EBITDA for this segment was lower by $24 million from 2015 due to the losses at Trump Entertainment.

Food packaging segment: Net sales for 2016 decreased by $15 million or 4% compared to the prior year period.

Consolidated adjusted EBITDA was $55 million in 2016, which was $4 million below the prior year period .

Gross margin as percentage of net sales was 24% in ‘16, which was consistent with the prior year.

Net sales for 2016 decreased by $94 million or 26% compared to the prior year.

The nest sales decrease was driven by lower selling prices and lower shipping volumes across all product lines, with the exception of secondary place.

Adjusted EBITDA was a loss of $15 million in 2016, compared to a loss of $29 million in the prior year period.

Real Estate: Real estate revenues were $88 million in 2016 which was approximately $43 million below the prior year period.

Our net leased portfolio continues to drive earnings in this segment with its 15 properties generating strong cash flows.

The real estate segment generated $41 million of adjusted EBITDA on 2016.

Mining: During 2016 international iron ore prices improved from an average of $48 per metric ton in Q1 ‘16 to an average of $71 per metric ton in Q4 2016.

Home Fashion: 2016 net sales for our Home Fashion segment were up slightly from the prior year period.

Adjusted EBITDA was a loss of $1 million for 2016 compared to a gain of $6 million in the prior year.

Gross margin as a percentage of net sales was 14% for 2016 as compared to 16% for 2015.

We ended Q4 2016 with cash, cash equivalents our investments and funds and revolver availability totaling approximately $4.5 billion.

In 2017, we have successfully refinance our upcoming holding company debt maturity and raised an additional $6 million via rights offering.

Our subsidiaries have approximately $1.6 billion of cash and $1 billion of undrawn credit facilities to enabled them to take advantage of attractive opportunities.