ICON plc Lehman Brothers Eighth Annual Global Healthcare Conference March 30 th 2005 ICON plc Lehman Brothers Eighth Annual Global Healthcare Conference

ICON plc

Lehman Brothers Eighth Annual Global Healthcare

ConferenceMarch 30th 2005

ICON plc

Lehman Brothers Eighth Annual Global Healthcare

ConferenceMarch 30th 2005

www.iconclinical.comwww.iconclinical.com

Overview


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.

Forward Looking Statements

Snapshot


Fourth largest Clinical CRO in the world

Quintiles

PPD

Parexel

ICON

Over $300m in Net Revenues

Approx 2700 staff

37 offices in 23 countries on five continents


Asia

Areas of Operation

North America

Latin America

Africa

Europe

Eastern Europe

Australasia

Offices: EU

www.iconclinical.comwww.iconclinical.comwww.iconclinical.comwww.iconclinical.com

Manchester

Marlow

Eastleigh

Dublin

Barcelona

Paris

Amsterdam

Riga

StockholmMoscow

Budapest

Tel Aviv

Frankfurt

Offices: US

www.iconclinical.comwww.iconclinical.comwww.iconclinical.comwww.iconclinical.com

Chicago

Houston

Nashville

Tampa

San Francisco

Irvine

Baltimore

Raleigh-Durham

New York CityLong Island

Philadelphia

Delaware

Offices: ROW


Planned 04/05

Sydney

Buenos Aires

Johannesburg

Taiwan

Seoul

Bangkok

Singapore

Chennai

Tokyo

Hong Kong

Montreal

Beijing


Full Service Drug Development

Pre-clinical Phase I Phase II Phase III Launch Phase IV

6% Strategic Drug Development and Regulatory Consulting (US & EU)

5% Phase I

8% Central lab (Global)

16% Data Management & Statistical Consulting (Global)

57% Trial Management & Monitoring (Global)

2.5% Contract Staffing (US)

2.5% Central Imaging Lab (US & EU)

3% IVRS (Global)

ICON plc

Market Dynamics

ICON plc

Market Dynamics


Strong Fundamentals Supporting Growth


Growth in Underlying spending (1)

Total 2005 R&D spend estimated at > $82bn; 10% growth forecast to continue

Total 2005 Development Spend estimated at >$54bn; 11% growth forecast

Continued growth in outsourcing(1)

Industry estimated to outsource approximately 27% of development and growing by 1% per annum.

Market growth estimated at 14%

(1) Source Jeffries & Co.

Strong Market Environment

Preferred Providers

Improving Pipelines

Biotech / Specialty Companies

Regulatory Environment


Bio-Tech, Mid-Sized and Japanese companies are increasingly significant


Biotech and specialty companies account for a growing percentage of projects in development: 55% of 2002 Clinical trials are derived from biotech companies.

Currently estimated to be more compounds in development in biotech/specialty than in all of Top 20 Pharma

ICON’s sales to non Top 20 pharma companies have been rising strongly:

16% 14%23% 22%

13% 12%

5% 12%

12% 17%27% 30%

0%

10%

20%

30%

40%

50%

FY2000 FY2001 FY2002 FY2003 FY2004 FY2005

% o

f IC

ON

re

ve

nu

es

Non-Bio / Non-Big Pharma Biotech

21%26%

35%39% 40% 42%

Scope for

Growth

RFP Volume / Value Trends – Global Clinical

Cumulative YTD (9 months) v Prior comp.period


87%

0.0%

50.0%

100.0%

150.0%

Feb

05

RFP Value Growth

81%

0.0%

50.0%

100.0%

150.0%

RFP Volume Growth


ICON Gross Business WinsLast 9 Quarters

$73

$93

$136

$84

$101 $99$93

$122$115

$0$10$20$30$40$50$60$70$80$90

$100$110$120$130$140$150

Feb-03 May-03 Aug-03 Nov-03 Feb-04 May-04 Aug-04 Nov-04 Feb-05

$ m

illio

ns

Total Backlog $Millions

$327$352

$422 $427$450

$464 $453$488

$509

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

Feb-03 May-03 Aug-03 Nov-03 Feb-04 May-04 01-Aug Nov-04 Feb-05

$ m

illi

on

s


ICON plcFinancial

Performance(Fiscal Years ending May

31)

ICON plcFinancial

Performance(Fiscal Years ending May

31)


$60

$81

$116

$157

$226

$297

$0

$100

$200

$300

FY1999 FY2000 FY2001 FY2002 FY2003 FY2004

Mil

lio

ns

Net Revenue CAGR of 38% over last 5 Years

CAGR 38%


$0.23

$0.48

$0.66 $0.70

$0.92

$1.16

$1.50

$1.88

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004

Millio

ns CAGR =35%

7 Years of Earnings Per Share Growth….


1.80%

0.80%

3.60%

1.30%

3.00%

4.30%

1.80%

3.00%

1.40%

0.60%

3.60%

2.30%1.70%

10.00%

0.40%

1.82%

3.60%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Q301

Q401

Q102

Q202

Q302

Q402

Q103

Q203

Q303

Q403

Q104

Q204

Q304

Q404

Q105

Q205

Q305

…However, ICON Has Traditionally Experienced Low Cancellation Rates but in Q1 05……

Cancellations as % of Opening Backlog

$46m cancellations inc. 2 major

projects

$4.1 $4.4$4.6$5.1 $5.2

$6.3$6.2

$7.2$7.6

$8.4$8.8

$7.0

$6.00

$9.5$9.6

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$ M

illio

ns


Quarterly Revenue and Operating Profit

$36.2 $37.8 $39.6$43.0

$46.9

$53.5$59.3

$66.0$68.9

$73.2$79.5

$82.90$78.3$77.9

$76.9


Quarterly EPS

15c

47c

51c 52c

41c

36c

45c44c43c

38c36c

33c31c

29c28c27c25c

23c22c21c20c19c17c

-$0.05

$0.05

$0.15

$0.25

$0.35

$0.45

$0.55

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FY2000 FY2001 FY2005FY2004FY2003FY2002

Summary Balance Sheet and Cashflow ($ millions)


Feb 28, 2005 May 31, 2004(Year)

Cash and cash equivalents $70.9 $78.8

Total assets $365.9 $335.3

Total debt $0.0 $0.0

Shareholder’s equity $231.1 $216.8

Cashflow from operations $10.6 $43.6

Capital expenditures $10.3 $13.1

Fully diluted shares outstanding

14.1 13.7

Current Issues /

Strategic

Development

Current Issues /

Strategic

Development www.iconclinical.comwww.iconclinical.com

Current Tactical Issues

Recovery from Exceptional Cancellation Quarter to Restore Growth

Net Wins $120m in Nov Qtr and $106m in Feb ’05 Qtr

Good net wins again needed in May quarter ($115m –$130m)


Capitalise on Lab Investments and Sales Success to Eliminate Losses

Continue Sales Success

Add more major clients

Develop technological base

Restore Phase I business to profit post EU Clinical Trials Directive


ICON LABS Net New Business Wins

Net Business Wins Book to Bill Ratio

$8.8

$6.6

$10.8$12.0

$4.9

$11.3

$6.9

$9.3

$11.80

$0

$5

$10

$15

$20

Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05

$ m

illi

on

s

1.4

1.8

1.5

1.1

1.9

0.7

1.41.9

0.97

Average

Book-to-Bill

1.4

Strategic MissionStrategic Mission

To continue to develop our business as a global, full service, clinically focused CRO, and to leverage the synergies between our multiple services.

Use “Full Service” to Leverage Client Relationships and Capture more of the Spend

Strategic ProductDevelopment /

Consulting 6%

Strategic ProductDevelopment /

Consulting 6%

Clinical Trial ManagementPhase II – IV

57%

Clinical Trial ManagementPhase II – IV

57%

Phase I5%

Phase I5%

Central Laboratory

8%

Central Laboratory

8%

IVRS2.5%

IVRS2.5%

Contract Staff3%

Contract Staff3%

Central Imaging Lab2.5%

Central Imaging Lab2.5%

Data Management &

Biostatistics16%

Data Management &

Biostatistics16%

Current Current Strategic Strategic InitiativesInitiatives

Investing in Operations in Japan

Creation of Data Management Operation in India

Partnership with Medidata Solutions in EDC

Developing specialised Phase IV Division

New IT in 2005 to enhance efficiency

New Trial Management and Project Collaboration Systems

New Document Management System

New eLearning System

Current Current Acquisition / InvestmentAcquisition / InvestmentFocusFocus

Central Labs

to increase scale

Additional Central Imaging Expertise

to broaden offering

Phase I in US

to compliment EU facility

Analytical Labs

to compliment EU facility

New Expertise in any of core areas

to add scale / unique expertise

OrganicOrganic

Get more business from current clients

Add new clients

Sell more new services - IVRS/Lab/Consulting/Phase I

Expand global presence

Increase therapeutic experience

AcquisitionsAcquisitions Add new services and broaden existing ones

GoalGoal To be the best full service clinical CRO

Future Development


Documents

ICON plc Lehman Brothers Eighth Annual Global Healthcare Conference March 30 th 2005 ICON plc Lehman Brothers Eighth Annual Global Healthcare Conference