ICF International, Inc. · NASDAQ:ICFI
ICF International — Investor Presentation (March 2021)
29 slides from ICF International's investor presentation, March 2021
Slide 1: ICF Investor Presentation
ICF Investor Presentation March 2021
Slide 2: Cautionary Statement
Cautionary Statement Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events, or performances are forward-looking statements within the meaning of the federal securities laws. Our actual results may differ materially from those expresse
Slide 3: ICF: A professional + technology services firm
ICF: A professional + technology services firm _ _ Serve a roster of Deliver strong cross- government clients with cutting capabilities in A growth platform social + environmental technology + engagement combining organic missions, energy utilities + commercial clients initiatives + acquisitions _ _
Slide 4: Synergy in markets + capabilities
Synergy in markets + capabilities Energy, Advisory + Health + Environment + Strategy ICF’s work across core Social service areas including Infrastructure Programs climate, energy efficiency, 41% 44% disaster management, public health and social programs Program Management addresses environmental and
Slide 5: Track record of strong revenue + EPS growth
Track record of strong revenue + EPS growth Revenue: Non-GAAP EPS: 5-year CAGR 5-year CAGR 5.9% 9.6% 5
Slide 6: ITG acquisition
ITG acquisition ITG is a unique IT consulting firm delivering application modernization and business transformation for U.S. federal government clients Key business statistics Key tech partners $90M +$100M 92% 2019 Revenue revenue run-rate prime contract revenue > EBITDA margin 350 Digital transform
Slide 7: Meaningful growth opportunities
Meaningful growth opportunities ICF’s Domain ICF’s Robust ICF’s Best-in- Expertise + Client Business Class Contract Selective ITG’s Relationships Development Engine Vehicles Insourcing Qualifications — — — — — ITG brings a ICF has many net new Combination of ICF’s substantial business opportunities
Slide 8: COVID-19 impacts
COVID-19 impacts ICF has contract vehicles in all ~90% of ICF’s business federal agencies actively involved in proceeding apace handling COVID-19 crisis Some international ~$40 million in 2020 in plus-ups government events work and and new contracts awarded by commercial marketing for U.S. federal g
Slide 9: COVID-19 opportunities: Recovery + Reinvent phases
COVID-19 opportunities: Recovery + Reinvent phases Increased Guidelines for Management of spending on government national stockpile of public health roles and vaccines and responsibilities medical equipment in a pandemic Modernization of Evaluation of disease hospital surge surveillance capacity sys
Slide 10: Catalysts for long-term organic growth
Catalysts for long-term organic growth Federal Government State + Local Civilian agency spending Government Public health Disaster management: Climate impacts recovery + mitigation IT modernization Infrastructure projects Environmental stewardship Infrastructure spending Electric Utilities / Climate
Slide 11: ICF culture: a source of competitive advantage
Purpose To build a more prosperous and resilient world for all. ICF culture: Values a source of competitive Interact with integrity advantage Bring your passion Embrace differences Challenge assumptions Work together Be greater than 11
Slide 12: We serve a roster of government clients, energy utilities + commercial clients
We serve a roster of government clients, energy utilities + commercial clients* US Federal US State + Local 44% 15% >80% of revenues from government clients + energy utility clients Provides significant opportunities for expansion Non-US Government Commercial 6% 35%** *Full-year 2020 financials rele
Slide 13: We work with a broad array of government clients
We work with a broad array of government clients US State + DHHS 17% Local 15% Government revenues 65% of DOD 6% total revenues* DOS 5% EPA 3% US federal revenues GSA 2% primarily from civilian DOT 1% agencies DOJ 1% Commercial Other Fed 9% 35%** Non-US *Full-year 2020 financials released Government
Slide 14: Utility industry clients
Utility industry clients Energy efficiency programs Utility transformation: distributed Majority long-term for utilities: State-mandated energy + grid modernization contracts NV Xcel Focus on Energy Natural Resources Emissions Canada Energy Energy Wisconsin ComEd Reduction Alberta Avangrid Environme
Slide 15: ICF Next: our go-to-market brand for digital transformation services
ICF Next: our go-to-market brand for digital transformation services Technology Analytics Engagement Strategy Loyalty Combines creativity of Designs solutions that Built specifically to an agency with deep drive real participation realize the benefits domain expertise of a with customers, of an inte
Slide 16: Business, environmental + social responsibilities are intertwined
At ICF, our business, environmental + social responsibilities are intertwined We create $615M+* $670M+* impact through Revenue from services Revenue from services supporting energy supporting health, our client work… saving, carbon reduction, education, development, and natural resource and social j
Slide 17: …and in the way we operate
…and in the way we operate — — — Minimizing our Investing in the Ensuring value carbon footprint— communities where through governance— net zero carbon we work and live corporate policies status since 2006 and structure help us operate ethically and in compliance with the law 17
Slide 18: Corporate citizenship: 2020 performance highlights
Corporate citizenship: 2020 performance highlights Provided opportunities Leadership Pay equity Low turnover Investing in our for all employees to develop and advance. 54% female leaders no identified meaningful disparities across races or 11.7% people 33% female board genders in the same roles as c
Slide 19: Drivers of long-standing client relationships
Drivers of long-standing client relationships — — Institutional Workforce of memory of long-time government industry experts + utility programs — — Long-term Proprietary contract vehicles IP/loyalty with government programs + utility clients 19
Slide 20: Financial Performance
Financial Performance
Slide 21: Track record of consistent revenue + earnings
Track record of consistent revenue + earnings Revenue ($ Millions) EPS *Non-GAAP EPS: GAAP EPS plus tax-affected impact of acquisition-related charges, special charges, and amortization of intangibles **2017 Non-GAAP EPS excludes the one-time benefit of a Deferred Tax Liability (DTL) revaluation for
Slide 22: Q4 2020 performance
Q4 2020 performance Revenue ($ Millions)* EPS* $1,600 $4.50 $1,478.5 $1,506.9 $4.15 $4.17 $4.00 $1,400 $3.50 $1,200 $3.00 $1,000 $2.50 $800 $2.00 $3.59 $600 $1.36 $434.3 $1,043.5 $1.50 $1.19 $2.87 $396.6 $1,002.8 $400 $1.00 $200 $0.50 $1.01 $251.9 $262.2 $0.67 $0 $0.00 Q4 2019 Q4 2020 FY 2019 FY 202
Slide 23: Contract Awards and Backlog
Contract Awards ($ Millions)* Backlog ($ Billions)* Book-to-Bill Ratio (TTM) Q4 2019 1.03 Q4 2020 1.30 Funded Unfunded $2,100 $1,955 $2.9 $1,800 $2.4 $1,523 $1,500 $1.4 $1,200 $1.1 $900 $600 $525 $1.3 $1.5 $353 $300 $0 Q4 2019 Q4 2020 FY 2019 FY 2020 Q4 2019 Q4 2020 *Based on Q4 and full-year 2020 f
Slide 24: 2021 guidance
2021 guidance Revenue $1.525B - $1.575B Service Revenue $1.095B - $1.130B GAAP EPS $3.90 - $4.20* Non-GAAP EPS $4.35 - $4.65 Operating Cash Flow ~$100M * Exclusive of special charges 24
Slide 25: Pipeline ($B)
Pipeline ($B) $7.1 $6.8 $6.8 $6.4 $6.5 $6.5 $6.3 $6.3 $5.7 $5.8 $5.5 $4.4 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Strong pipeline of qualified opportunities, the majority relating to federal government clients 25
Slide 26: Operating cash flow, 2016 - 2021
Operating cash flow, 2016 - 2021 $M Dividends Debt Repayment + Other Share Repurchase CAPEX $173.1 $10.5 $117.2 $113.5 $100.0 $91.4 $80.1 $74.7 $10.5 $70.2 $7.9 $31.9 $51.5 $30.0 $27.7 $20.5 $29.7 $11.3 $10.8 $17.8 $19.3 $25.5 $28.5 $19.4 2016 2017 2018 2019 2020 2021 GUIDANCE* Net Debt $253.3 $194.
Slide 27: Historical Cash Flow Conversion at ~100%
Historical Cash Flow Conversion at ~100% $200.0 105% 104% $180.0 • Over the past five years, we have had very 101% $173.1 strong cash conversion of our net income $160.0 100% (adjusted for non-cash items) and generated strong Operating Cash Flow…… $140.0 94% • …While growing our top line from $1.1B
Slide 28: In summary — ICF offers
In summary — ICF offers: — — — Distinctive expertise Established long-term Strong in high-growth client and contract environmental, social, sectors of relationships + + governance government, energy substantial contract performance— utility industry + backlog internally + for clients digital transfo
Slide 29: About ICF
Ne JICF in} linkedin.com/company/icf-international/ © twitter.com/ict icf.com | https://www.facebook.com/ThislsICF/ About ICF ICF (NASDAQ:ICFI) is a global consulting and digital services company with over 7,000 full- and part-time employees, but we are not your typical consultants. At ICF, business
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