ICON
Q1 Results Ended
March 31st, 2017
Dr. Steve Cutler, CEO
Brendan Brennan, CFO
Jonathan Curtain, VP Corporate Finance &
Investor Relations
Forward Looking Statement
Certain statements in today’s call will be forward looking statements. Actual results may differ
materially from those stated or implied by forward looking statements due to risks and
uncertainties associated with the company’s business and listeners are cautioned that forward
looking statements are not guarantees of future performance. The company’s filings with the
Securities and Exchange Commission discuss the risks and uncertainties associated with the
company’s business.
This presentation includes selected non-GAAP financial measures. For a presentation of the
most directly comparable GAAP financial measures, please refer to the press release
statement headed Consolidated Income Statements (Unaudited) (US GAAP). While nonGAAP financial measures are not superior to or a substitute for the comparable GAAP
measures, we believe certain non-GAAP information is more useful to investors for historical
comparison purposes.
Net Business Wins & Net Book to Bill Ratios
1.22
1.18
1.21
1.18
1.17
NBB
1.10
NBB TMM
1.21
1.13
Net
1.16
1.00
622
605
580
572
514
502
434
440
Q1 16
521
510
Q2 16
Q3 16
Q4 16
Q1 17
Gross
Backlog Metrics
9.1%
Closing Backlog
$bn
4.25
4.22
Q3 2016 *
Q4 2016
4.31
4.04
3.95
Q1 2016
Q2 2016
Q1 2017
* Includes ClinicalRm
Next 12 months forecast revenue coverage
% Conversion of opening backlog
10.3%
10.4%
10.4%
10.2%
10.2%
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
75%
75%
74%
74%
74%
Q1 16
Q2 16
Q3 16
Q4 16
Q1 17
Quarterly Net Revenue
$401
Q1 2016
$411
Q2 2016
$435
$432
Q4 2016
Q1 2017
$420
Q3 2016
Client Concentration: % Revenue
Q1 2016
75% 74%
Q1 2017
58% 58%
45% 45%
29%
Top 25
Top 10
Top 5
24%
Top 1
Reducing customer revenue concentration
2000
1800
1600
1400
1200
Revenue Other Clients
1000
Revenue Top 5
Revenue Top Client
800
600
53%
53%
49%
45%
c3540%
400
48%
200
18%
26%
31%
31%
2014
2015
26%
c1517%
0
2012
2013
2016 A
2017 e
Quarterly Gross Margin
42.9%
Q1 2016
42.0%
42.1%
42.2%
42.0%
Q2 2016
Q3 2016
Q4 2016
Q1 2017
SG&A : % of revenue
20.2%
19.5%
19.3%
19.2%
18.8%
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Quarterly Operating Margin
19.8%
19.5%
19.3%
19.0%
19.0%
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
Earnings per share
7
cent
126
129
119
112
114
Q1 16
Q2 16
Q3 16
Q4 16 *
Q1 17
* Includes 7c Tax Upside
Balance Sheet
DSO
Capital Expenditure
Net Cash Balance
Q1 2016
Q4 2016
Q1 2017
31/03/16
31/12/16
31/03/17
47
50
47
$7.7m
$13.3m
$8.3m
($100m)
($88m)
($30m)
Quarterly YOY Comparison
Net Revenue
Q1 2017
Q1 2016
Variance
$432 m
$401 m
7.8%
+ 8.3% constant currency
Gross Margin
42.0%
42.9%
90 bps
SG&A (% of revenue)
18.8%
20.2%
140 bps
Operating Margin
19.8%
19.0%
80 bps
Net Income Margin
16.5%
15.7%
80 bps
EPS
129c
112c
15.2%