icon plc. raymond james – 30 th annual institutional investors march 11 th 2009

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ICON Plc.Raymond James – 30th Annual Institutional Investors

March 11th 2009

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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

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Global Full Service Clinical Development

US 45%

EU 47%

ROW 8%

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ICON’s Global Footprint

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ICON plc Staff Growth 1990 - Today

5 18 40 70 100 180 250 340 580830

1300 15001995

2418 25883036

4293

5292

6975

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Market Environment

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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

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Continued R&D Spending Growth

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Continued R&D Spending Growth

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Phase I Pipeline Robust

Source Goldman Sachs

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Positive trends in Phase II / III

Source Goldman Sachs

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Compounds in development growing across all therapeutic areas

Source Goldman Sachs

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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

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• 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

Increased Outsourcing

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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

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Opportunities…. but also Risks

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ICON in this Market Environment

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Value of RFPsGross, Net and by Origination Region

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$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

2003 2004 2005 2006 2007 2008

(in m

illion

s)

Gross Net US (Net) EU (Net) ROW (Net)

(Gross includes RFPs that never progressed to award)

1919

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

2003 2004 2005 2006 2007 2008

(in m

illion

s)

Gross Net US (Net) EU (Net) ROW (Net)

Value of RFPsGross, Net and by Execution Region

(Gloss includes RFPs that never progressed to award)

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Net New Business wins and book to bill ratios

$230 $230

$344$369

$337$350

$261

Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08

1.6

1.8

1.6

1.2

1.51.9

1.4

Net Business Wins Book to Bill Ratio

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50% Large Pharma18% Mid Pharma

7% Non-Rev Co’s

Analysis of 2008 Business Wins

13% Large Bio

12% Mid Bio

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Total Backlog levels. ($ millions)

$1,049$1,125

$1,300

$1,486

$1,633

$1,736 $1,748

Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08

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Coverage of next 4 quarters from backlog

$493$542

$589

$690

$752 $762$707

Q2 07 Q3 '07 Q4 '07 Q1 08 Q2 08 Q3 08 Q4 08

77%77% 76% 77%

74%

76% 77%

Value of backlog forecast to be earned in next 4 quarters

% coverage of next 4 quarters forecast revenues

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Projects of longer duration leads to slower backlog burn

15.3%15.9% 16.0% 15.5%

14.6%13.8%

12.7%

Q2 07 Q3 '07 Q4 '07 Q1 08 Q2 08 Q3 08 Q4 08

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Quality

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Quality and Delivery remain our Key Focus.

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2007 2008

ICON Internal Audits 863 870

Client & ISO Audits 255 219

Total  1118 1089

We are extensively audited (internally and by clients)

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Office Date Region Auditing Authority Outcome

Redwood City, CA Oct 2003 US FDA No findings (no FDA 483)

New York City, NY Mar/Apr 2005 US FDA No findings (no FDA 483)

North Wales, PA May 2005 US FDA No findings (no FDA 483)

Nashville, TN Oct/Nov 2005 US FDA No findings (no FDA 483)

North Wales, PA Dec 2005 US FDA No findings (no FDA 483)

Nashville, TN Jan 2006 US FDA No findings (no FDA 483)

Eastleigh, UK Oct 2004 EU MHRA No critical findings

Dublin, Ireland Apr 2005 EU IMB No critical findings

Eastleign/Marlow, UK Sept 2007 EU MHRA No critical findings

Frankfurt. Germany Sept 2007 EU Local regulatory authority: RP Darmstadt No critical findings

Singapore Oct 2005 ROW HSA - Health Services Authority of Singapore No critical findings

Excellent record of regulatory agency inspections

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Strategy

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ICON’s Core Strategy is Organic Growth,with acquisitions made to add new services or scale.

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

Acquisitions to date - 12

• Revenues acquired $130m

• Staff acquired – 1,200

• => Organic growth >80%

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Financial Performance

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Net Revenue CAGR of over 30% since 2005

$865

$631

$456

$327

$955

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

FY2005 FY2006 FY2007 FY2008 FY2009*

Mill

ions

CAGR 31%

* Mid Point of 2009 Guidance

(E)

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Earnings Per Share Growth

$0.43

$0.68

$0.94

$1.30

$1.46

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

FY2005 FY2006 FY2007 FY2008 FY2009*

CAGR 36%

(E)

* Mid Point of 2009 Guidance

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Recent Financial Performance ($ millions)

31 Dec FY 2008

31 Dec FY 2007

% Increase

Net Revenue 865 631 37%

Direct Costs 489 354 38%

SG & A 248 189 32%

D & A 28 19 46%_____ _____ _____

Operating Income 100 69 44%Operating Margin 11.5% 11%

Net Income 78 56 40%_____ _____ _____

EPS (Inc SFAS 123R) 130c 94c 38%

Weighted Average no. of Shares (Inc SFAS123R)

60.2m 59.5m 1.2%

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Recent Financial Performance ($ millions)

Q4 2008 Q4 2007 % Increase

Net Revenue 220 181 22%

Direct Costs 125 100 25%

SG & A 62 56 11%

D & A 7 5 31%_____ _____ _____

Operating Income 26 20 34%Operating Margin 12% 11%

Net Income 21 16 32%_____ _____ _____

EPS (Inc SFAS 123R) 35c 26c 35%

Weighted Average no. of Shares (Inc SFAS123R)

59.9m 60m

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Summary Balance Sheet and Cash Flow ($ millions)

Dec 31, 08 Dec 31, 07 (Year)

Net (Debt)/Cash ($4.3) $23.8

Total assets $867.3 $693.1

Shareholder’s equity $456.4 $388.4

Cashflow from operations $81.3 $42.9

Capital expenditures $67.9 $75.4

CAPEX Excl. Dublin Extn. $46.0 $36.8

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

Investment Case Summary