1
ICON plc
Bank of America
May, 2006
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.
2
Investment Highlights
Top global CRO
Strong market fundamentals
Outstanding record of organic growth
Strong balance sheet
Growth accelerating
Margins expanding
3
Company Overview
4

Approx. $400 million in annualized net revenues

5 Year Net Revenue CAGR = 28%

4th Largest CRO in Phase II – IV

Global coverage - 41 locations in 27 countries

Unique operating model with focus on quality and
flexibility

> 3,200 staff worldwide

Note Change of Year End to 31 December
Global Full Service Clinical Development
Pre-clinical
Phase I
Phase II
Phase III
Launch
6% Drug Development and Regulatory Support
5% Phase I
58%
Trial Management, Monitoring & Pharmacovigilence
15%
Data Management & Statistical Consulting
3.5%
8%
2.5%
2%
5
Interactive Technologies
Central Laboratory
Central Imaging Lab
Contract Staffing
Phase IV
Client Concentration
Revenue 3 months to 31 March 2006
74.0%
53.0%
37.0%
9.5%
Largest Client
6
Top 5
Top 10
Top 25
7
Market Environment
Strong Market Environment with….
Fundamental R&D Spending Growth Trend ~
10% p.a.
 Phase II / III pipelines strengthening
Increased Outsourcing
 Growth c.15% p.a. since 2001*
 Being accelerated by activity & funding in Biotech /
Speciality
 Evidence emerging that projects where CROs are
engaged complete faster than “internal only”
studies*
Regulatory Environment
Globalisation favouring large CROs
8
*Source: Tufts Centre for Study of Drug Development
…. Improving Pipelines,….
(% growth in # of projects v prior year)
10%
8%
6%
4%
2%
0%
Q1'04
Q2'04
Q3'04
Q4'04
Q1'05
-2%
Q305
Source : Pharmaprojects
Phase II
9
Q2'05
Phase III
Q405
… while US Biotech Funding Environment
continues to grow, leading to…..
Biotech fund raising ($bn)
$45.0
$38.9
$40.0
$34.5
$Billion
$35.0
$30.8
$30.0
$25.3
$25.0
$20.0
$19.5
$16.4
$17.9
$15.0
$10.0
$5.0
$0.0
1999
10
2000
Source: Burrill and Company
2001
2002
2003
2004
2005
…strong RFP growth in 2005….
RFP Volume / Value Trends – Global Clinical
4 Quarters ending November ‘05
RFP Volume Growth
RFP Value Growth
150.0%
150.0%
100.0%
100.0%
75%
50.0%
0.0%
11
40%
50.0%
0.0%
…… and the trend continues in 2006
RFP Volume / Value Trends – Global Clinical
Q1 FY06 v Q1 FY05
RFP Volume Growth
10.0%
RFP Value Growth
100.0%
80.0%
60.0%
40.0%
2%
20.0%
0.0%
12
0.0%
89%
ICON Gross Business Wins - Last 8 Quarters
$200
$186
$180
$165
$160
$ millions
$140
$122
$120
$100
$99
$127
$115
$106
$93
$80
$60
$40
$20
$0
May-04
13
Aug-04
Nov-04
Feb-05
May-05
Aug-05
Nov-05
Mar-06
ICON’s Net New Business Wins growing strongly…
Net Business Wins
1.7
Book to Bill Ratio
1.6
1.5
1.2
1.2
$171m
1.4
1.3
$170m
1.2
$150m
$140m
$130m
$122m
$120m
$106m
$110m
$91m
$101m
$91m
$90m
0.6
$70m
$46m
$50m
$30m
Q1 2004
14
Q2 2004
Q3 2004
Q4 2004
Q1 2005
Q2 2005
Q3 2005
Q4 2005
Q1 2006
…leading to record total backlog levels….
$800
$707
$700
$633
$568
$ millions
$600
$509
$528
Q1 05
Q2 05
$488
$500
$450
$464
$453
Q2 04
Q3 04
$400
$300
$200
Q1 04
15
Q4 04
Q3 05
Q4 05
Q1 06
…and strong forecast coverage of next 4
quarters revenues.
$350
Value of backlog fcst to be earned in next 4 Qtrs
76%
76%
% coverage of next 4 qtrs fcst revenues
71%
70%
71%
71%
70%
70%
$307
$296
$300
66%
67%
$279
66%
$262
$250
$248
$241
$252
$238
$224
$200
16
Q1 '04
Q2 '04
Q3 '04
Q4 '04
Q1 '05
Q2 '05
Q3 '05
Q4 '05
Q1 '06
17
Strategy
ICON’s Broad Strategy is to ……
Capitalise on market fundamentals to drive
organic growth.
Expand geographic footprint
Cross-sell our services to grow sales further and
increase margins
Pursue acquisitions to enhance depth and scale of
current operations and to add additional
complementary services
18
Cross-sell to leverage client relationships and
capture more of the project spend.
Strategic Product
Development /
Consulting
6%
Central
Laboratory
9%
Clinical Trial
Management
Phase II – IV
58%
Central Imaging
Lab
2.5%
Data Management
&
Biostatistics
15%
IVRS
3.5%
Contract Staff
2%
19
Phase I
5%
Examples of some detailed strategic
initiatives
Creating Therapeutic Specialist Groups (TAGs) in
key therapeutic areas to leverage our experience and
build further scale e.g. Oncology
Recent offices opened in Warsaw, Milan, Santiago,
Beijing, San Diego, Taipei, Seoul, Hong Kong
Investing in Operations in Japan – significant
opportunity for growth over next 10 years
Creation of Data Management Operation in India –
now 50 people and growing
Partnership with Medidata Solutions in EDC –
gaining traction
20
Developing specialised Phase IV Division
21
Financial Performance
Recent Financial Performance
($millions, except EPS)
22
Mar ’06
Feb ’05*
% Increase
Net Revenue
Direct Costs
SG & A
D&A
98.5
54.2
29.9
3.4
_____
82.9
46.0
27.4
3.4
_____
18.9
17.8
9.0
0.6
_____
Operating Income
Net Income
11.0
8.5
_____
6.1
5.0
_____
82.0
68.7
_____
EPS
59c
36c
63.8
Weighted Average no.
of Shares
*Excluding One-time charge of $11.5m
14.4
14.1
2.5
Net Revenue CAGR of 28% over last 4 Years,
and strong growth forecast for 2006….
$450
$402
$400
Millions
$350
$327
$297
$300
$250
$226
$200
$150
$157
$116
$100
$50
$0
FY2001
23
*
FY2002
FY2003
FY2004
Mid point calendar year guidance issued April 28, 2006
FY2005
2006(E)
*
… underpinned by strong forecast coverage of
next 12 months revenues.
$307m
(US$, & % of Forecasts)
$296m
$279m
$262m
$248m
$241m
$224m
66%
24
76%
$238m
70%
Q1 2004
$252m
Q2 2004
70%
71%
Q4 2004
Q1 2005
70%
76%
71%
67%
Q3 2004
Q2 2005
Q3 2005
Q4 2005
Q1 2006
Earnings Per Share Growth
$3.00
$2.40 (E)
$2.50
$1.88
$2.00
$1.70
$1.50
$1.50
$1.16
$1.00
$0.92
$0.50
$0.00
FY2001
25
FY2002
FY2003
FY2004
* Mid point calendar year guidance issued April 28, 2006
FY2005
2006 (E)
*
Summary Balance Sheet and Cashflow
($ millions)
Net Cash
Nov 30, 05 Mar 31, 06
(Qtr)
(Qtr)
$82.2
$85.3
$347.6
$354.9
$371.1
$0.0
$3.0
$0.0
$233.1
$242.0
$253.5
Cashflow from operations
$23.8
$11.7
$10.5
Capital expenditures
$15.6
$7.8
$4.5
Fully diluted shares
outstanding
14.2
14.3
14.4
Total assets
Total debt
Shareholder’s equity
26
May 31, 05
(Year)
$78.4
27
Improving Margins
Quarterly Operating margins have been
improving….
11.2%
10.2%
9.7%
8.8%
8.6%
7.3%
Q4 2004
28
Q1 2005
Q2 2005
Q3 2005
Q4 2005
Q1 2006
… driven by expanding Clinical margins as
revenue growth has accelerated.
These should continue to improve through 2006
12.7%
12.8%
Q3 2005
Q4 2005
13.0%
12.2%
11.7%
10.2%
Q4 2004
29
Q1 2005
Q2 2005
Q1 2006
Simultaneously, Lab losses are reducing,
with breakeven forecast by end 2006, and
profits in 2007….
Lab Losses
Q4 04
Q1 05
Q2 05
Q3 05
Q4 05
Q1 06
Q2 06(E)
Q3 06(E)
Q4 06(E)
$0.2
$0.0
($0)
$ millions
-$0.3
-$0.6
($1)
-$1.2
-$1.6
($2)
30
-$1.9
-$1.8
-$2.1
…As Lab revenues grow ….
$Millions
$10
$9.3
$9
$ millions
$8.1
$8
$7.2
$7
$6.5
$6.5
$6.4
$6.1
$6
$5
Q3 04
31
Q4 04
Q1 05
Q2 05
Q3 05
Q4 05
Q1 06
…driven by strong Lab net new business wins…
Net Business Wins
Book to Bill Ratio
3.5
2.6
1.9
$20
1.9
1.8
$18.6
1.5
$ millions
$15
1.4
$12.0
0.7
$11.8
$11.3
1.6
1.3
1.1
$10.8
$21.6
$12.9 $12.5
$9.3
$10
$6.9
$5
$4.9
$0
Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06
32
Investment Highlights
Top global CRO
Strong market fundamentals
Outstanding record of organic growth
Strong balance sheet
Growth accelerating
Margins expanding
33