ICON Public : plc Q3 2020 Presentation

ICON

Q3 2020

Period Ended September 30th, 2020

Dr. Steve Cutler, CEO

Brendan Brennan, CFO

Jonathan Curtain, VP Corporate Finance & Investor Relations

Accountability & Delivery | Collaboration | Partnership | Integrity

Forward Looking Statement

Certain statements in today's call will be forward looking statements. These statements are based on management's current expectations and information currently available, including current economic and industry conditions. 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. Forward-looking statements are only as of the date they are made and we do not undertake any obligation to update publicly any forward-looking statement, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in SEC reports filed by the company.

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 Condensed Consolidated Statements of Operations (US GAAP) (Unaudited). While non-GAAP 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.

Backlog Metrics

		+11.8%
		9.4
		9.1
	8.6	8.7
8.4

8.7%	8.7%	8.3%		7.8%
$bn
		7.1%

Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020
			Closing Backlog	Burn rate

Revenue

710	725	715	702
			620

$m

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Client Concentration

			Percentage of Revenue
Q3 2019		24.9%	12.8%	18.9%
	11.4%
									Largest Customer
Q2 2020		12.1%	28.9%	13.9%	16.4%				Top 2-5 Customers
									Top 6-10 Customers
Q3 2020		12.4%	26.0%	12.7%	16.8%				Top 11-25 Customers
	0%	20%	40%	60%	80%

Gross Margin

Percentage of Revenue

710	725	715	702
			620

29.7% 29.9% 29.3% 28.1% 29.7%

$m

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Revenue Gross Margin %

SG&A

Percentage of Revenue

710	725	715	702
			620

$m

12.0%	11.9%	12.2%	13.5%	11.8%

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Revenue SG&A %

Operating Margin

Percentage of Revenue

710	725	715	702
			620

$m

15.5%	15.9%	14.9%	15.4%
			12.1%

Q3 2019	Q4 2019	Q1 2020	Q2 2020*	Q3 2020
		Revenue	Operating Margin %

* Excludes impact of non-recurring charges

Earnings per Share attributable to the Group

174	183	172
170

120

¢

Q3 2019

Q4 2019

Q1 2020

Q2 2020*

Q3 2020

* Excludes impact of non-recurring charges

Balance Sheet and Cash Flow

	Q3 2020	Q2 2020	Q3 2019
	30-Sept-20	30-Jun-20	30-Sept-19
DSO*	45	53	56
Capital Expenditure	$6.9m	$9.9m	$13.7m
Cash from Operating Activities	$112.0m	$117.9m	$160.7m
Net Cash Balance	$359.8m	$244.0m	$121.7m
Gross Cash Balance	$709.7m	$593.8m	$471.2m

* Calculated on a comparative non-GAAP basis

Q3 Year-on-Year Comparison Summary

Revenue^

Gross Margin

SG&A (percentage of revenue)

Operating Margin

Net Income attributable to Group (percentage of revenue)

EPS attributable to Group

^ 1.2% reported decline. 1.9% constant currency decline

Q3 2020	Q3 2019
$702m	$710m
29.7%	29.7%
11.8%	12.0%
15.4%	15.5%
13.1%	13.3%
172c	174c

FY 2020 Guidance

	Previous	Current
Revenue	$2,650m	- $2,750m	$2,750m	- $2,810m
EPS	$6.00	- $6.50	$6.35	- $6.50

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