Icahn Enterprises L.P.

Our investment in the funds was $4 billion as of September 30, 2020. Now to our energy segment. For Q3 2020, our energy segment reported net sales of $1 billion and consolidated adjusted EBITDA of a loss of $39 million compared to net sales of $1.6 billion and consolidated adjusted EBITDA of $235 million for the prior year period. The Q3 2020 EBITDA loss includes a loss of $65 million related to CVR's investment in DELIC. Q3 2020 combined total throughput was approximately 201,000 barrels per day compared to approximately 222,000 barrels per day for Q3 2019. This decrease was primarily attributable to a change in the crude slate towards maximizing light crude and weather-related power issues. Refining margin per throughput barrel was $5.47 in the third quarter of 2020 compared to $16.34 during the same period in 2019. The refining margin was significantly impacted by narrow crack spreads and tight crude differentials as low air travel continues to force excess jet fuel into the diesel fuel market, resulting in low diesel prices. CVR Partners reported Q3 2020 EBITDA of $15 million compared to $11 million in Q3 2019. While UAN volumes increased 7%, UAN prices were down 23% due to low natural gas prices. CVR Energy did not declare a dividend this quarter, as it evaluates various investment opportunities, including renewable diesel. Now turning to our automotive segment. Q3 2020 net sales and service revenues for Icon Automotive Group were $660 million, down $84 million from the prior year period, with $48 million of the decline related to store closures and the remainder primarily related to the sales slowdown due to COVID-19. Q3 2020 adjusted EBITDA, which excludes losses associated with closed stores, was $6 million, compared to a loss of $23 million in the prior period. Icon Automotive continues to push forward with a multi-year transformation plan to restructure the operations and improve profitability. Icon Auto accelerated closures of certain parts stores, adjusted store hours, and staffing to match reduced demand, implemented significant cost savings measures, and reduced capital spending to minimum levels. All these initiatives helped IconAuto offset the impact of significant sales decline and position the company for profitability as sales return. Now turning to our food packaging segment. Q3 2020 net sales increased by $7 million, or 7%, and consolidated adjusted EBITDA was $15 million compared to $12 million in the prior year period. Net sales increased due to increases in both volume and price. Demand for Viscase casing products remained strong and steady, with increased global demand related to the COVID-19 pandemic. In October 2020, Viscase completed an equity private placement with IEP for $100 million. This case also entered into a credit agreement providing for a $150 million term loan and a $30 million revolving credit facility. The proceeds from the new term loan plus the equity private placement were used to repay in full the existing term loan. And now to our metal segment. Q3 2020 net sales increased by $1 million and adjusted EBITDA increased by $6 million compared to the prior year. Volumes and prices have recovered from the low point in Q2, contributing to a return of profitability. And now to our real estate segment. Q3 2020 net operating revenues decreased by $7 million compared to the prior year. Adjusted EBITDA for the quarter decreased by $2 million compared to the prior year period. Revenue from our real estate operations for both Q3 2020 and Q3 2019 were substantially derived from income from the sales of residential units and rental operations. Now turning to our home fashion segment. Q3 2020 net sales increased by $2 million compared to the comparable prior year period. Sales to hospitality customers were down significantly but were offset by strong sales of face masks. West Point achieved adjusted EBITDA of $4 million in Q3 compared to a loss of $2 million in the prior year period. Sales of higher margin face masks and cost cutting were the primary drivers of increased profitability. Now I will discuss our liquidity position. We maintain ample liquidity at the holding company, and at each of our operating subs to take advantage of attractive opportunities. We ended Q3 2020 cash, cash equivalents, our investment in the investment fund, and revolver availability totaling approximately $6.5 billion. Our subsidiaries have approximately $775 million of cash and $591 million of of undrawn credit facilities to enable them to take advantage of attractive opportunities. In summary, we continue to focus on building asset value and maintaining ample liquidity to enable us to capitalize on opportunities within and outside of our existing operating segments. Thank you. Operator, can you please open the call for questions, please?

Thank you. As a reminder, to ask a question, you'll need to press star 1 on your telephone. To withdraw your question, press the pound key. Please stand by as we compile the Q&A roster. Our first question comes from Dan Fenn with Jefferies. You may proceed with your question.

Hey, good morning. Thanks for taking the question. So first is just on the new agreement in terms of the succession planning and Thinking about the team coming over, you mentioned multiple investment professionals. I guess you could just put some numbers around that, and will there be any changes in terms of the AUM that's coming with them or thoughts around potentially looking at raising external capital or any just kind of shifts in terms of the mandate of what you guys are currently doing across the current hedge fund?

Sure. Yeah, sure. Thanks, Dan, for the questions. Yeah, let me take them maybe – I'll try to address each one. Brett came back as we brought him back October 1st. We had been negotiating with him for a while on him returning to the firm. Obviously, I think both sides, Brett and us, thought that we would ultimately get to a deal, so I believe he started a process. six, seven months ago of interviewing and looking for people that could be part of the team and that he was comfortable with and agreed with investment philosophies and styles. He did a lot of diligence on that. At the end of the day, he ultimately found three guys that he viewed as a very good fit And so it all sort of came together and worked out that he came back and the October 1st and these three portfolio managers who will report up to him came with him. But they weren't necessarily a team together at another fund or anything like that. And there's no AUM coming over with them. So there's sort of four new Brett and the three portfolio managers underneath him. uh... that started october first and they're often running uh... you know looking at new ideas as far as uh... i would i would discuss some of your other questions i would answer uh... no there is no current plans to uh... pivot and start uh... taking in third-party money at this point uh... will just continue to manage the existing investment segment as it is which as you know is quite sizable uh... you know eight nine billion dollars and uh... they'll work within that construct of capital.

And will they be carved out separately from the existing kind of investment team?

Well, we've had, and I think you'll see it in our public presentation that we put out every quarter. It should be out on our website in a week or two. We have a slide on current, you know, sort of the team. I think we've had some turnover, so I sort of view them As a significant new part of the investment team, there's been a couple of senior people that have left year-to-date, and so I think you'll see some familiar names and then these guys coming in. So I think it's – no, it will not be – it'll be integrated from the point of view of you'll see no difference in the investment segment reporting. Obviously, certain things are tracked separately for purposes of the deal. that we brought Brett back under. But for all intents and purposes, it's, you know, it's still one sort of overall strategy.

Understood. And then just, I guess, from a high level, you know, this day, I guess, four years ago, you guys were in the headlines a lot, or Carl was, given his view of what was going to happen with the change in the White House. And now, obviously, we don't know exactly what's going to happen But I guess just an overall kind of view of the market and kind of where you guys sit today in terms of what you're looking at in terms of new investment opportunities, kind of positioning of the fund you guys give it. But just is there any shift in terms of how you're thinking?

No, I think a lot of the themes are similar in sound, so I don't mean to bore you, but I think we sort of always have a cautious bend. To our investment outlook, you can see that in our quarterly exposures that we've disclosed every quarter for the last 10 years. You tend to see either very low net long exposures, if not outright net short exposures. So I think we're very cautious in a sort of S&P 500 market that trades at whatever, 25, 26 times earnings. You know the story with us. We like to buy things that we view as cheap, sort of with a value bent, where we can be a catalyst through the activist model to unlock value. And so in a high multiple market, it's obviously always harder to find those type of names, but we're finding certain spots. We're picking our spots. You know, the new team's been here a month. They've found a couple of things that are interesting that we're looking at and sort of maybe building toehold positions on. So I'm cautiously optimistic that we'll pick our spots. But I think on the overall market, you know, you've got to be very careful. Understood. Okay. Thank you. Yeah, thanks for the questions, Dan.

Thank you. And as a reminder, to ask a question, you'll need to press star 1 on your telephone. Please stand by as we compile the Q&A roster. And speakers, I'm not showing any further questions at this time.

Okay. Thanks, everybody. We, as always, appreciate your interest in Icon Enterprises, and we'll look forward to talking to you in the new year about fourth quarter results. Have a good day.

Thank you, ladies and gentlemen. This concludes today's conference call. Thank you for participating. You may now disconnect. Thank you. Thank you. Thank you. Thank you. Thank you. you you music Thank you. you