ICON plc 28th Annual J.P. Morgan Healthcare Conference January 2010
Forward Looking Statements Certain statements contained herein including, without limitation, statements containing the words “believes,” “anticipates,” “intends,” “expects” and words of similar import, constitute forward-looking statements concerning the Company's operations, performance, financial condition and prospects. Because such statements involve known and unknown risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation includes selected non-GAAP financial measures. For a presentation of the most directly comparable GAAP financial measures, please refer to the Quarter press release consolidated income statement headed Consolidated Income Statements (Unaudited) (US GAAP)
Global Service Offering
Global Full Service Clinical Development
ICONs Global Footprint Operating from 68 offices in 38 Countries
ICON Plc Staff Growth Today
ICON Plc – Staff Educational Qualifications
Drugs in Development by Indication (#compounds) ICON Backlog by Indication (Revenue) Drugs in Development by Indication Source – R&D Directions 9 th Annual Report
ICON Phase II-IV Clinical Research
Full range of Trial Management Services >5000 staff working on circa 400 studies with circa 100,000 patients in over 10,000 sites. ICON Phase II-IV Clinical Research
Electronic Data Capture (EDC) Medidata Rave/Phase Forward/ Oracle Clinical RDC / Sponsor systems Deployed on c.280 current studies c.160 wins v’s 2005 c.17 wins Interactive voice response systems (IVRS) Patient enrolment, randomisation and management in 850 projects over 50,000 sites. Technology in Trial Management
ICON Laboratories
Capabilities in: Bio analytical Lab Bio-marker Lab Global Central Lab Global Lab footprint in key global regions, including the US, UK, Singapore, India and Ireland. All ICON laboratories are either GCP or GLP as well as CAP accredited. Our BA labs have over 1,500 assays developed in support of over 2500 studies. ICON Laboratories
ICON Early Phase Testing
Capacity in excess of 200 beds in the US and UK ICON is collaborating with the Central Manchester University Hospitals Foundation to develop a purpose-built translational medicine facility which will be open in ICON Early Phase Testing
ICON Medical Imaging
Market Leading positions in Oncology and CEC based on own proprietary Imaging Management Platform Provides world class solutions in the development of imaging biomarkers that support drug development Over 100 FDA submissions ICON Medical Imaging
DOCS (Contract Staffing)
Core Services: Functional Resourcing Flexible Resourcing Services Permanent Recruitment Support Training & Development Programs DOCS (Contract Staffing)
Market Environment
Opportunities…. but also Risks
No of Compounds in Development * Source :Pharmaprojects
Each 3% Increase in Outsourcing Penetration Drives a 9% Increase in the CRO Market Market Penetration 32.4% Market Penetration 35.4% 9%
Total Biotech Funding ($ Millions) * Source :Burrell and Co
CRO Market Size 1996 – 2012 (E)
ICON in this Market Environment
New Business Wins and Net Book to Bill Ratio (NB:B) Net Business Wins ICLR NB:B (12 Mth Avg.) Peer NB:B (12 Mth Avg.) Gross Business Wins Source: Jefferies & Co.
Analysis of Backlog by client type Q3 09
Total Backlog Level ($ Millions) +6% YoY
Value of backlog forecast to be earned in next 4 quarters Coverage of next 4 quarters from Backlog
Opportunities…. but also Risks Strategy
Build Deep Strategic Relationships Create Stronger differentiation across our services Retain a flexible business model to respond to differing client outsourcing strategies Build scale in early phase development Build scale in post approval business (Phase IV) Enter new/grow position in selected markets ICON’s Strategy
Quality
Quality and Delivery remains our Key Focus.
(to End Sept) Regulatory Audits 339 ICON Internal Audits Client & ISO Audits Total We live Quality internally
Financial Performance
CAGR 28% Net Revenue CAGR of 28% since 2005 * Guidance range issued October 21 st 2009 Millions
EBITDA Margin Progression
EBIT Margin Progression (9 Mths to Sept.)
CAGR 37% Earnings Per Share Growth * Guidance range issued October 21 st 2009
FCF Free Cash Flow * Estimate assumes DSO of approx 60 days. Historic periods FCF exclude Dublin Campus construction costs
Return on Equity
Summary Balance Sheet and Cash Flow ($ millions) 9 Mths ended Sept 31, 09 Full Year ended Dec 31, 08 Cash$173.0$101.1 Debt$28.0$105.4 Net Cash/Debt$145.0($4.3) Total assets$922.1$867.3 Total Liabilities$381.3$410.9 Shareholder’s equity$540.8$456.4 Cashflow from operations$198.4$81.3 Capital expenditures$26.0$67.9
ICON S&P 500 Nasdaq Composite ICON Plc Historic Share Price Performane
Top Global Clinical CRO - #4 Deep customer relationships Quality of staff Experienced Management team Excellent Reputation Solid market fundamentals Outstanding record of growth Strong balance sheet Investment Case Summary