Icf International, Inc. · NASDAQ:ICFI
Icf International — Sidoti & Co. Fall 2020 Investor Conference
28 slides from Icf International's conference presentation, Sep 23, 2020
Slide 1: ICF Investor Presentation
ICF Investor Presentation Sidoti & Co. Fall 2020 Investor Conference September 23, 2020
Slide 2: 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 Cautionary Statement expresse
Slide 3: ICF: A professional + technology services firm
ICF: A professional + technology services firm Serve a roster of Leverage Deliver strong cross- Benefit from government clients deep domain cutting capabilities visibility of a with social + expertise to achieve in technology + substantial backlog environmental superior results for engagement + grow
Slide 4: Synergy in markets + capabilities
Synergy in markets + capabilities Advisory + Energy, Health + Social Strategy Environment + Programs Infrastructure 40% 44% Program Management Consumer + Safety + Technology, Financial Security ICF’s work across core service Analytics + 8% 8% areas including climate, energy Engagement efficiency, di
Slide 5: Track record of strong revenue + EPS growth
Track record of strong revenue + EPS growth Revenue: GAAP EPS: 5-year CAGR 5-year CAGR 7.1% 12.4% 5
Slide 6: YTD COVID-19 impacts
YTD COVID-19 impacts ~90% of ICF’s business ICF has contract vehicles in all proceeding apace federal agencies actively involved in handling COVID-19 crisis International government Plus-ups and new contracts awarded by US events work postponed federal government clients in Response Phase Commercial
Slide 7: COVID-19 opportunities: Recovery + Reinvent Phases
COVID-19 opportunities: Recovery + Reinvent Phases Increased spending Guidelines for government Management of on public health roles and responsibilities national stockpile of in a pandemic vaccines and medical equipment Modernization of disease Evaluation of hospital surveillance systems surge capa
Slide 8: 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 9: Meaningful joint growth opportunities
Meaningful joint growth opportunities ICF’s Domain Expertise + Client ICF’s Robust Business ICF’s Best-in-Class Selective ITG’s Relationships Development Engine Contract Vehicles Insourcing Qualifications ITG brings a substantial business Combination of ICF’s deep domain expertise development pipeli
Slide 10: Catalysts for long-term organic growth
Catalysts for Federal Government State + Local Government long-term • Civilian agency spending • Disaster management: recovery + mitigation • Public health organic growth • IT modernization • Infrastructure spending • Citizen engagement Electric Utilities Digital Transformation • Energy efficiency •
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, US Federal US State + Local energy utilities + 41% 18% commercial clients* >80% of revenues from government clients + energy utility clients Non-US Government Commercial Provides significant 7% 34%** opportunities for expansion *TTM through June 30, 2020 **En
Slide 13: We work with a broad array of government clients
We work with a broad array of government clients US State + DHHS 16% Local 18% Government revenues 66% of DOD 6% total revenues* DOS 5% EPA 2% US federal revenues DOT 1% primarily from civilian DOJ 1% agencies HUD 1% Commercial Other Fed 9% 34%** Non-US Government 7% *TTM through June 30, 2020 **Ene
Slide 14: Utility industry clients
Utility industry clients Energy efficiency programs for utilities: State-mandated Utility transformation: distributed energy + grid modernization Majority long-term contracts 14
Slide 15: ICF's go-to-market brand for digital transformation services
ICF’s 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 with customers, of an integrated a c
Slide 16: Our business, environmental + social responsibilities are intertwined
At ICF, our business, environmental + social responsibilities are intertwined. We create $550M+ revenue from impact through $650M+ revenue from services supporting health, services supporting energy our client work… saving, carbon reduction, education, development, and social justice programs and na
Slide 17: …and in the way we operate
…and in the way we operate Minimizing our Investing in the Ensuring value through carbon communities where governance—corporate footprint—net we work and live policies and structure help zero carbon status us operate ethically and in since 2006 compliance with the law 17
Slide 18: Corporate citizenship performance highlights of 2019
Corporate citizenship performance highlights of 2019 Provided opportunities Leadership Pay equity Low turnover Investing in our people for all employees to develop 53% female leaders and advance. no pay disparity across gender and race in the 15.4% 33% female board same roles, based on an as compare
Slide 19: Drivers of long-standing client relationships
Drivers of Institutional Workforce of long-standing memory of long-time client government industry experts relationships + utility programs Long-term contract Proprietary vehicles with IP/loyalty government programs + utility clients 19
Slide 20: Financial Performance
$102 Financial Performance
Slide 21: Track record of consistent revenue + earnings growth
Track record of consistent revenue + earnings growth Revenue ($ 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) revaluat
Slide 22: 2020 guidance
2020 guidance Revenue $1.450B - $1.510B GAAP EPS $2.85 - $3.15* Non-GAAP EPS $3.50 - $3.80 EBITDA $126M - $136M Operating Cash Flow ~$110M Assumes no material new revenues in H2 associated with COVID-19 opportunities or other meaningful opportunities in our pipeline * Exclusive of special charges 22
Slide 23: Q2 2020 performance
Q2 2020 performance Q2 2020 service revenue of $261.2M up 3.5% vs. Q2 2019 H1 2020 YTD performance supports our FY guidance service revenue of $516.6M up 4.6% vs. H1 2019 Revenue ($ Millions)* EPS* $708.0 $712.2 $1.85 $1.71 $366.7 $354.0 $0.97 $0.89 $1.56 $1.27 $0.76 $0.72 Q2 2019 Q2 2020 YTD 2019 Y
Slide 24: Contract Awards and Backlog
Contract Awards ($ Millions)* Backlog ($ Billions)* Book-to-Bill Ratio (TTM) Q2 2020 backlog does not include $250M+ of award notices expected to be included in Q3 contract awards Q2 2019 1.15 Q2 2020 1.00 Funded Unfunded $692 $2.4 $2.4 $639 $1.3 $1.1 $403 $282 $1.1 $1.3 Q2 2019 Q2 2020 YTD 2019 YTD
Slide 25: Pipeline ($B)
Pipeline ($B) $7.1 $6.8 $6.4 $6.5 $6.5 $6.3 $5.7 $5.8 $5.5 $4.3 $4.2 $4.4 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Record pipeline at end of Q2 2020 includes over $4 billion of federal government opportunities 25
Slide 26: Operating cash flow, 2015 - 2020
Operating cash flow, 2015 - 2020 $M Dividends Debt Repayment + Other Share Repurchase CAPEX $117.2 $110.0 $91.4 $76.3 $80.1 $70.2 $74.7 $10.5 $7.9 $31.9 $36.4 $51.5 $30.0 $20.5 $27.7 $11.3 $23.9 $10.8 $19.3 $25.5 $28.5 $16.0 $17.8 2015 2016 2017 2018 2019 2020 GUIDANCE* Net Debt $303.8 $253.3 $194.4
Slide 27: In summary — ICF
In summary — ICF Distinctive expertise in Established long-term Strong environmental, high-growth sectors of client and contract social, + governance government, energy relationships + performance— utility industry + digital substantial contract internally + for clients transformation backlog All le
Slide 28: JICF
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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