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ICON Plc. Raymond James – 30 th Annual Institutional Investors March 11 th 2009

ICON Plc. Raymond James – 30 th Annual Institutional Investors March 11 th 2009. Forward Looking Statements.

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ICON Plc. Raymond James – 30 th Annual Institutional Investors March 11 th 2009

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  1. ICON Plc.Raymond James – 30th Annual Institutional Investors March 11th 2009

  2. 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.

  3. Global Full Service Clinical Development EU 47% ROW 8% US 45%

  4. ICON’s Global Footprint

  5. ICON plc Staff Growth 1990 - Today

  6. Market Environment

  7. Market Fundamentals still intact • Continued R&D Spending Growth. • Pipelines continue to strengthen • Scientific innovation continues to expand • Increased Outsourcing • Globalisation of clinical research • New strategic thinking / cost containment • Increasing Regulation • More patients/ more studies • Post marketing surveillance

  8. Continued R&D Spending Growth

  9. Continued R&D Spending Growth

  10. Phase I Pipeline Robust Source Goldman Sachs

  11. Positive trends in Phase II / III Source Goldman Sachs

  12. Compounds in development growing across all therapeutic areas Source Goldman Sachs

  13. Market Fundamentals still intact • Continued R&D Spending Growth. • Pipelines continue to strengthen • Scientific innovation continues to expand • Increased Outsourcing • Globalisation of clinical research • New strategic thinking / cost containment • Increasing Regulation • More patients/ more studies • Post marketing surveillance

  14. Increased Outsourcing • Clients are increasingly focused on their core competencies of • Discovery • Strategic Development • Marketing • Clients are asking CROs to take more responsibility • Scientific/medical depth will be increasingly important • Clients likely to move their % outsourced from ≈ 30% to >50% over the next 5+ years

  15. Market Fundamentals still intact • Continued R&D Spending Growth. • Pipelines continue to strengthen • Scientific innovation continues to expand • Increased Outsourcing • Globalisation of clinical research • New strategic thinking / cost containment • Increasing Regulation • More patients/ more studies • Post marketing surveillance

  16. Opportunities…. but also Risks

  17. ICON in this Market Environment

  18. Value of RFPsGross, Net and by Origination Region (Gross includes RFPs that never progressed to award) 18

  19. Value of RFPsGross, Net and by Execution Region (Gloss includes RFPs that never progressed to award) 19

  20. Net New Business wins and book to bill ratios Net Business Wins Book to Bill Ratio

  21. Analysis of 2008 Business Wins 7% Non-Rev Co’s 12% Mid Bio 50% Large Pharma 18% Mid Pharma 13% Large Bio

  22. Total Backlog levels. ($ millions)

  23. Coverage of next 4 quarters from backlog % coverage of next 4 quarters forecast revenues Value of backlog forecast to be earned in next 4 quarters

  24. Projects of longer duration leads to slower backlog burn

  25. Quality

  26. Quality and Delivery remain our Key Focus.

  27. We are extensively audited (internally and by clients)

  28. Excellent record of regulatory agency inspections

  29. Strategy

  30. ICON’s Core Strategy is Organic Growth,with acquisitions made to add new services or scale. Acquisitions to date - 12 • Revenues acquired $130m • Staff acquired – 1,200 • => Organic growth >80% • Capitalise on market fundamentals to drive organic growth in all business units. • Cross-sell services to grow sales and margin • Pursue acquisitions to enhance depth and scale of current operations and to add additional complementary services e.g. • Phase I • Bioanalytical / Biomarkers • Therapeutic specialists • Safety / Late Phase • Japan

  31. Financial Performance

  32. Net Revenue CAGR of over 30% since 2005 (E) CAGR 31% *Mid Point of 2009 Guidance

  33. Earnings Per Share Growth (E) CAGR 36% *Mid Point of 2009 Guidance

  34. Recent Financial Performance ($ millions)

  35. Recent Financial Performance ($ millions)

  36. Summary Balance Sheet and Cash Flow ($ millions)

  37. Investment Case Summary • Top Global Clinical CRO - #4 • Excellent strategic position • Solid market fundamentals • Outstanding record of growth • Strong balance sheet

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