Icahn Enterprises L.P.

2008 Q4 and Full Year Performance
March 5, 2009
Financial Results and Company Highlights

Forward-Looking Statement
Forward-Looking Statements and Non-GAAP Financial Measures The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. These forward-looking statements involve risks and uncertainties that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal and other factors. Accordingly, there is no assurance that our expectations will be realized. We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law. This presentation also includes non-GAAP financial measures. Please note that quantitative reconciliations between each non-GAAP financial measure contained in this presentation and its most directly comparable GAAP measure are available on our website by viewing the copy of this presentation at www.IcahnEnterprises.com/investor.shtml.

1

Agenda
Overview and Investment Management Keith A. Meister
Vice Chairman and Principal Executive Officer

Financial Performance and Business Segments Dominick Ragone
Chief Financial Officer & Principal Accounting Officer

Questions
2

Overview and Investment Management

Highlights
Results 2008 net loss of $43 million or $(0.80) per depositary unit. Fourth quarter net loss of $468 million or $(6.51) per depositary unit. Liquid assets of approximately $3.3 billion Subsequent Events Icahn Enterprises made an investment of $250 million in the Private Funds. Board of Directors approved a cash distribution of $0.25 per unit on depositary units payable on March 16, 2009.
4

Investment Management
Gross returns for the twelve months ended December 31, 2008 were -35.6% compared to -38.5% for the S&P500 index for the same period. Total AUM of approximately $4.4 billion as of December 31, 2008.

5

Financial Performance

Consolidated Results
($ in millions)
Three Months Ended December 31, 2008 Revenues Expenses (Loss) income from continuing operations before income taxes and non-controlling interests Income tax (expense) benefit Non-controlling interests $ 236 2,230 $ 2007 339 471 %∆ -30% 373% $ Twelve Months Ended December 31, 2008 5,027 8,153 $ 2007 2,491 2,002 %∆ 102% 307%

(1,994) 62 1,465

(132) 5 112

NM

(3,126) (47) 2,645

489 (9) (261)

NM

Income (loss) from continuing operations (Loss) income from discont inued operations, net of income t axes Net (Loss) Earnings $

(467)

(15)

NM

(528)

219

NM

(1) (468) $

13 (2) NM $

485 (43) $

89 308 NM

7

Business Segment Performance

Federal - Mogul
($ in millions)
Net Sales Operating Loss Gross Margin D&A Three Months Ended December 31, 2008 $1,319 (551) 183 84 Ten Months Ended December 31, 2008(1) $5,652 (353) 922 284

Q4 Dynamics
Federal-Mogul had an operating loss of $551 million for the quarter as it wrote down assets and stepped up restructuring in response to a deep downturn in demand. Impairment charges primarily for goodwill and intangible assets were $434 million for 2008 and were recognized in the fourth quarter. Restructuring charges of $118 million for the quarter as part of Federal-Mogul’s global restructuring program announced in September and December 2008. Expects to incur additional restructuring costs estimated at $37 million through fiscal 2010. Gross Margin of $183 million for the fourth quarter of fiscal 2008. Gross Margin of $922 million for the ten months ended December 2008. Continuing global development of fuel economy, alternative energies, emissions technologies and vehicle safety to support market and customer requirements.

(1)

IE consolidated Federal-Mogul beginning February 25, 2008 (date of common control). IE includes the results of FederalMogul for the ten months ended December 31, 2008.

9

Metals
($ in millions)
Three Months Ended December 31, 2008 2007 %∆ $ 96 (20) (10) 4 $ 212 10 12 3 -54.7% N/A N/A 33.3% $ Twelve Months Ended December 31, 2008 2007 %∆ 1,239 103 137 16 $ 834 38 56 10 48.6% 171.1% 144.6% 60.0% Net Sales Operating (Loss) Income Gross Margin D&A

Q4 Dynamics
Unprecedented global demand drove ferrous scrap pricing to historically high levels in 2008, peaking in early 3Q. Since that time, demand and prices have plummeted with 4Q 2008 net sales decreasing by $116 million and operating income falling by $30 million. The decline was partly offset by $11 million of revenue generated from scrap yards acquired during or since 4Q 2007. The impact of acquisitions on full year revenues was $141 million. 4Q measures implemented in response to these market conditions include significant staff reductions and salary freezes, temporary idling of major equipment and certain operations, and reduced capital spending.

10

Real Estate
($ in millions)

Net Sales Operating Income D&A Development units sold Rental Units Sold

Three Months Ended December 31, 2008 2007 %∆ 28.6% $ 27 $ 21 6 2 200.0% 4 4 1 8 1 300.0%

Twelve Months Ended December 31, 2008 2007 %∆ $ 101 $ 106 -4.7% 19 14 35.7% 9 39 3 5 76 5 80.0%

Q4 Dynamics
In Q4 2008, operating income increased primarily due to the acquisition of two rental properties on 8/14/08 partially offset by a decrease in residential real estate sales. In Q4 2008, we sold 4 residential units for approximately $8 million compared to 8 units sold for $11 million in Q4 2007.

11

Home Fashion
($ in millions)
Three Months Ended December 31, 2008 Net Sales Operating Loss Gross Margin Contained in operating loss: D&A Restructuring Impairment $ 107 (30) 6 3 8 7 $ 2007 152 (33) 1 2 5 5 %∆ -29.6% -9.1% 500.0% 50.0% 60.0% 40.0% $ 2008 425 (95) 31 12 25 12 $ Twelve Months Ended December 31, 2007 683 (159) 2 14 19 30 %∆ -37.8% -40.3% NM -14.3% 31.6% -60.0%

Q4 Dynamics
The fourth quarter of fiscal 2008 continued to reflect lower sales from the weak home textile environment due to the current slowdown in residential home sales, the elimination of unprofitable programs and the economic recession in general. Gross margin of $6 million for the fourth quarter of 2008 compared to $1 million for the comparable period of 2007. Gross margin of $30 million for the twelve months ended December 2008 compared to $2 million for the comparable period of 2007. Gross margin improvements came from shifting manufacturing capacity from the U.S. to lower cost countries. Operating losses before restructuring and impairment charges for the fourth quarter of fiscal 2008 were $14 million compared with $24 million for the fourth quarter of fiscal 2007, and improved 42% primarily due to improving gross margins and lowering selling, general, and administrative expenditures. WPI continues its restructuring efforts and, accordingly, anticipates that restructuring charges and operating losses will continue to be incurred throughout fiscal 2009.

12

Debt and Liquidity
($ in millions)
Debt: Senior unsecured v ariable rate conv ertible notes due 2013 - IE Senior unsecured 7.125% notes due 2013 - IE Senior unsecured 8.125% notes due 2012 - IE Exit facilities - Federal - Mogul Mortgages payable Other Total Debt Cash, Cash Equiv alents and Liquid Assets Cash and Cash Equivalents and Liquid Assets, Net of Debt Undrawn Credit Facilities Icahn Enterprises WestPoint Home Federal-Mogul
(1)

December 31, 2008 $ 556 961 352 2,474 123 105 4,571 $ 3,291 (1,280)

$

$

150 45 540 735

(1)

Cash, Cash Equivalents and Liquid Assets $ 2,612 19 660 $ 3,291

Cash & cash equivalent s Liquid invest ment s (excludes Invest ment Management ) Icahn Funds Invest ment (eliminat ed in consolidat ion)

13

Questions

Appendix

EBITDA
($ in millions)

For the Three Months ended December 31, 2008 2007 Net earnings Interest expense
(1)

$

(468) 58 (49)

$

(2) 41 (2) 7 44

Income tax expense, net Depreciation, depletion and amortization EBITDA
(2)

$

74 (385)

$

(1)

Includes amortization of debt issuance costs. (2) Excludes amortization of debt issuance costs.

16

EBITDA
($ in millions)

For the Twelve Months ended December 31, 2008 2007 Net earnings Interest expense
(2)

$

(43) 273 308

(1)

$

308 171 27 39 545

Income tax expense, net Depreciation, depletion and amortization EBITDA
(3)

$

248 786

$

(1) (2)

Includes gain on sale of $472 million. Includes amortization of debt issuance costs. (3) Excludes amortization of debt issuance costs.

17

Segment Data
($ in millions)

For the Three Months ended December 31, Revenues(1) 2008 2007 $ (107) 212 23 165 46 $ 339 $ $ Income (loss) cont. ops. 2008 (176) (382) (8) 6 (17) 110 (467) $ $ 2007 (22) 15 3 (11) (15)

Inv estment Management Automotiv e Metals Real Estate Home Fashion Holding Company

$

(1,493) 1,335 99 28 110 157

$

236

(1)

Segment revenues include interest and other income and net gains and losses from investment activities.

18

Segment Data
($ in millions)

For the Twelve Months ended December 31, (1) Income (loss) cont. ops. Revenues 2008 2007 2008 2007

Investment Management Automotive(2) Metals Real Estate Home Fashion Holding Company

$

(2,783) 5,727 1,243 103 438 299

$

588 834 113 706 250

$

(335) (350) 66 14 (55) 132

$

170 42 14 (84) 77

$

5,027

$

2,491

$

(528)

$

219

(1) (2)

Segment revenues include interest and other income and net gains and losses from investment activities IE consolidated Federal-Mogul beginning February 25, 2008 (date of common control). IE includes the results of Federal-Mogul for the ten months ended December 31, 2008. 19

Sign up to vote on this title
UsefulNot useful