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

ICON plc Lehman Brothers Eighth Annual Global Healthcare Conference March 30 th 2005. www.iconclinical.com. Overview. Forward Looking Statements.

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

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  1. ICON plc Lehman Brothers Eighth Annual Global Healthcare Conference March 30th 2005 www.iconclinical.com

  2. Overview 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. www.iconclinical.com

  3. 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 www.iconclinical.com

  4. Asia Areas of Operation Eastern Europe Europe North America Latin America Australasia Africa www.iconclinical.com

  5. Stockholm Moscow Riga Dublin Manchester Amsterdam Marlow Frankfurt Eastleigh Paris Budapest Barcelona Tel Aviv Offices: EU www.iconclinical.com www.iconclinical.com

  6. Chicago New York City San Francisco Long Island Nashville Philadelphia Irvine Delaware Houston Baltimore Tampa Raleigh-Durham Offices: US www.iconclinical.com www.iconclinical.com

  7. Offices: ROW Montreal Seoul Sydney Hong Kong Beijing Tokyo Bangkok Taiwan Chennai Buenos Aires Singapore • Planned 04/05 www.iconclinical.com Johannesburg

  8. Full Service Drug Development 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) 3% IVRS (Global) 2.5% Central Imaging Lab (US & EU) 2.5% Contract Staffing (US) www.iconclinical.com

  9. ICON plc Market Dynamics www.iconclinical.com

  10. 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% www.iconclinical.com (1)Source Jeffries & Co.

  11. Preferred Providers Improving Pipelines Biotech / Specialty Companies Regulatory Environment Strong Market Environment www.iconclinical.com

  12. 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: 42% 40% 39% 35% 26% Scope for Growth 21% www.iconclinical.com

  13. RFP Volume / Value Trends – Global ClinicalCumulative YTD (9 months) v Prior comp.period RFP Volume Growth RFP Value Growth www.iconclinical.com

  14. ICON Gross Business WinsLast 9 Quarters www.iconclinical.com

  15. Total Backlog $Millions

  16. ICON plcFinancial Performance(Fiscal Years ending May 31) www.iconclinical.com

  17. Net Revenue CAGR of 38% over last 5 Years CAGR 38% www.iconclinical.com

  18. 7 Years of Earnings Per Share Growth…. CAGR =35% www.iconclinical.com

  19. …However, ICON Has Traditionally Experienced Low Cancellation Rates but in Q1 05…… Cancellations as % of Opening Backlog $46m cancellations inc. 2 major projects www.iconclinical.com

  20. Quarterly Revenue and Operating Profit www.iconclinical.com

  21. Quarterly EPS FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 www.iconclinical.com

  22. Summary Balance Sheet and Cashflow ($ millions) www.iconclinical.com

  23. Current Issues / Strategic Development www.iconclinical.com

  24. 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) Current Tactical Issues • Capitalise on Lab Investments and Sales Success to Eliminate Losses • Continue Sales Success • Add more major clients • Develop technological base www.iconclinical.com Restore Phase I business to profit post EU Clinical Trials Directive

  25. ICON LABS Net New Business Wins Average Book-to-Bill 1.4 Net Business Wins Book to Bill Ratio www.iconclinical.com

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

  27. Use “Full Service” to Leverage Client Relationships and Capture more of the Spend Strategic Product Development / Consulting 6% Phase I 5% Central Laboratory 8% Central Imaging Lab 2.5% Clinical Trial Management Phase II – IV 57% IVRS 2.5% Data Management & Biostatistics 16% Contract Staff 3%

  28. Current Strategic Initiatives • 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

  29. Current Acquisition / Investment Focus • 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

  30. Future Development Organic • Get more business from current clients • Add new clients • Sell more new services - IVRS/Lab/Consulting/Phase I • Expand global presence • Increase therapeutic experience Acquisitions • Add new services and broaden existing ones Goal • To be the best full service clinical CRO www.iconclinical.com

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