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ICON Quarter 4 and Full Year 2013 Results ended December 31st, 2013 Mr. Ciaran Murray, CEO Mr. Brendan Brennan, CFO Mr. Simon Holmes, EVP IR & Corporate Development Dr. Steve Cutler, COO
Certain statements contained herein including, without limitation, statements containing the words “believes,” “anticipates,” “intends,” “expects” and words of similar import, constitute or may constitute forward-looking statements concerning the Group's operations, performance, financial condition and prospects. Because such statements involve known and unknown risks and uncertainties and depend on circumstances and events that may or may not occur in the future, actual results may differ materially from those expressed or implied by such forward-looking statements. Given these uncertainties and as forward looking statements are not guarantees of future performance, investors and 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 press release consolidated income statement headed Consolidated Income Statements (US GAAP)
Forward Looking Statement
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Revenue
Quarterly Net Revenue
$300 $317
$334 $340 $345
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
Client Concentration in Revenue
18%
48%
63%
76%
Top 1 Top 5 Top 10 Top 25
FY 2012
26%
53%
64%
78%
Top 1 Top 5 Top 10 Top 25
FY 2013
Net Revenue By Geography
45.8%
42.3%
11.9%
FY 2012 FY 2013
45.4%
43.6%
11.0%
Europe
US
ROW
7
Gross Margin
Gross Margin
36.0% 36.1% 35.9%
37.1% 37.7%
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
9
SG&A
SG&A as a % of revenue
24.4% 23.9% 23.2%
24.0% 23.0%
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
11
Operating Margin
Operating Margin*
8.1% 8.7%
9.3% 9.8%
11.2%
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013*Operating margins for Q1 2013 and Q2 2013 have been adjusted to exclude restructuring and other items of $4.4m and $4.6m respectively.
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EPS
34 36
43 45
53
0
10
20
30
40
50
60
Q4 12 Q1 13 Q2 13 Q3 13 Q4 13
EPS Cent
EPS. Earnings per share *
*EPS for Q1 2013 and Q2 2013 have been adjusted to exclude restructuring and other items of $4.4m and $4.6m respectively.
Q4 2012 31/12/12
Q3 2013 30/09/13
Q4 2013 31/12/13
DSO 40 40 32
Capital Expenditure $ 8.4 m $6.2m $6.1m
Net Cash Balance $190 m $219 m $321 m
Balance Sheet Highlights
16
Business Wins
1.37 1.48 1.48 1.47 1.43 1.38 1.31 1.22 1.23
New Business Wins and Net Book to Bill Ratios
ICON NB:B (Quarterly) ICON NB:B (12 mth avg)
1.27 1.53 1.35 1.59 1.26 1.33
1.10 1.22 1.29
358
485 477 496
423
481 496 471
540
308
385 373
450
378 422
364
415 446
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013Gross Net
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Backlog
Opening Backlog and Burn Rate
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
Bur
n ra
te q
uate
rly
Bac
klog
($bn
)
Opening Backlog Burn Rate
$982m $987m $1,027m
$1,072m $1,080m
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
77% 77% 77% 77% 75%
Backlog forecast to be earned in the next 12 months (US$ & % of total forecasts)
Guidance for 2014
21
Revenue Range EPS Range
$1,415- $1,465m
$2.05- $2.20
Questions & Answers
Quarterly Summary 2013
Q1 2013
Q2 2013
Q3 2013 Q4 2013
Net Revenue $ 317m $ 334m $ 340m $ 345m
Gross Margin 36.1% 35.9% 37.1% 37.7%
SG&A (% of revenue) 23.9% 23.2% 24.0% 23.0%
Operating Margin 8.7% 9.3% 9.8% 11.2%
Net Income Margin 7.0% 7.9% 8.2 % 9.7%
EPS $0.36 $0.43 $0.45 $0.53
Book-to-Bill (TTM) 1.38 1.31 1.22 1.23
Full Year 2013 Summary
FY 2012 FY 2013 Variance
Net Revenue $ 1,115m $ 1,336m 20%
Gross Margin 35.6% 36.7% 110 bps
SG&A (% of revenue) 25.2% 23.5% 170 bps
Operating Margin 6.6 % 9.7% 310 bps
Net Income Margin 5.4% 8.2% 280 bps
EPS $1.00 $1.77 + 77c
Book-to-Bill (TTM) 1.43 1.23
