Iqvia Holdings, Inc. · NYSE:IQV
Iqvia — Q4 2017 Earnings Presentation
20 slides from Iqvia's earnings presentation, Feb 14, 2018
Slide 1: Q4 2017 Earnings Call
Q4 2017 Earnings Call February 14, 2018 Copyright © 2017 IQVIA. All rights reserved.
Slide 2: Legal
Legal This presentation should be viewed in conjunction with IQVIA’s Q4 2017 earnings call Safe Harbor Statement for Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 19
Slide 3: 4th Quarter Results
4th Quarter Results $M Revenue Adjusted EBITDA +10.7% AFx +7.7% AFx +8.4% CFx +6.3% CFx $2,161 $2,008 $55(1) $1,953 $582 $541 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Dollars are at actual foreign exchange rates. AFx is actual currency, CFx is constant currency. Revenue does not include reimbursed expense re
Slide 4: 4th Quarter Revenue
4th Quarter Revenue $M 2017 2016 VPY% AFx VPY% CFx Commercial Solutions $1,027 $927 10.6% 7.8% R&D Solutions $947 $887 6.6% 5.0% Integrated Engagement $187 $194 (3.3)% (4.7)% Services Revenue $2,161 $2,008 7.7% 5.5% Deferred Revenue - $(55) - - Adjustment (DRA) (1) Revenue with DRA $2,161 $1,953 10.
Slide 5: 4th Quarter 2017 Profit
4th Quarter 2017 Profit $M, except per share data Adjusted EBITDA (1) $582 Adjusted EBITDA Margin 26.9% Net Income (2) $1,076 Diluted Earnings per Share (2) $5.02 Adjusted Net Income (1) $300 Adjusted Diluted Earnings per Share (1) $1.40 Dollars are at actual foreign exchange rates. (1) See reconcil
Slide 6: Full-Year Revenue
Full-Year Revenue $M Assumes Merger Closed 1/1/16 Standalone VPY% VPY% VPY% VPY% 2017 2016 2016 (2) AFx CFx AFx CFx Commercial Solutions $3,638 $3,485 4.4% 4.0% $1,144 218.1% 215.9% R&D Solutions $3,647 $3,494 4.3% 4.4% $3,478 4.9% 4.9% Integrated Engagement $783 $804 (2.6)% (2.0)% $797 (1.8)% (1.1)
Slide 7: Net New Business and Backlog on a Contracted Basis
Net New Business and Backlog on a Contracted Basis $B LTM Net New Business $4.54 LTM Book-to-Bill 1.24x LTM Backlog Coverage (1) 2.89x Backlog as of 12/31/2017 $10.54 Dollars are at actual foreign exchange rates. LTM: Last twelve months. 6 (1) Backlog coverage is defined as R&D Solutions backlog at
Slide 8: 2017 Net New Business and Book-to-Bill
2017 Net New Business and Book-to-Bill LTM Contracted Net New Business LTM Contracted Book-to-Bill $B 4.54 1.22 1.24 4.37 1.16 1.14 4.08 4.03 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 More than $5 Billion of gross new business awards in 2017 7
Slide 9: Full-Year 2017 Profit
Full-Year 2017 Profit $M, except per share data Adjusted EBITDA (1) $2,047 Adjusted EBITDA Margin 25.4% Net Income (2) $1,309 Diluted Earnings per Share (2) $5.88 Adjusted Net Income (1) $1,039 Adjusted Diluted Earnings per Share (1) $4.67 Dollars are at actual foreign exchange rates. (1) See reconc
Slide 10: 4th Quarter 2017 Balance Sheet Items and Metrics
4th Quarter 2017 Balance Sheet Items and Metrics $M Cash & Cash Equivalents $959 Debt $10,225 Gross Leverage Ratio (1) 5.0x Net Leverage Ratio (1) 4.5x Net Cash Provided by Operating Activities $233 Capital Expenditures $(102) Free Cash Flow $131 Dollars are at actual foreign exchange rates. 9 (1) C
Slide 11: Accounting Standard ASC 606
Accounting Standard ASC 606 Effective January 1, 2018 Revenue recognition based on percentage of completion • • Total project costs estimated on a regular basis Revenue recognized based on project costs incurred as a percentage of total estimated project costs Services revenue and reimbursed expen
Slide 12: 2017 Recast for Accounting Standard ASC 606
2017 Recast for Accounting Standard ASC 606 $M Full-Year 2017 Full-Year 2017 Reported Recast Commercial Solutions $3,630 $3,682 R&D Solutions $3,647 $5,105 Integrated Engagement Services $783 $915 Revenue $8,060 $9,702 Adjusted EBITDA $2,047 $2,010 Adjusted Diluted EPS $4.67 $4.55 Dollars are at act
Slide 13: Full-Year 2018 Guidance Before Recast
Full-Year 2018 Guidance Before Recast $M, except per share data 2017 Reported 2018 Guidance VPY% Revenue $8,060 $8,450 - $8,650 4.8% - 7.3% Adjusted EBITDA $2,047 $2,190 - $2,260 7.0% - 10.4% Adjusted Diluted EPS $4.67 $5.35 - $5.60 14.5% - 19.8% Dollars are at actual foreign exchange rates. 12 Guid
Slide 14: Full-Year 2018 Guidance
Full-Year 2018 Guidance $M, except per share data 2017 Recast 2018 Guidance VPY% Revenue $9,702 $10,000 - $10,200 3.1% - 5.1% Adjusted EBITDA $2,010 $2,150 - $2,220 7.0% - 10.4% Adjusted Diluted EPS $4.55 $5.20 - $5.45 14.3% - 19.9% Adjusted Book Tax rate (1) - ~24% - Adjusted Cash Tax rate (1) - ~1
Slide 15: Q1 2018 Guidance
Q1 2018 Guidance $M, except per share data Revenue $2,420 - $2,470 Adjusted EBITDA $520 - $540 Adjusted Diluted EPS $1.23 - $1.30 Dollars are at actual foreign exchange rates. 14 Guidance assumes current exchange rates remain unchanged to the end of the first quarter.
Slide 16: IMS Health & Quintiles are now IQVIA
IMS Health & Quintiles are now VIA 15
Slide 17: Appendix
IMS Health & Quintiles are now VIA = Appendix 16
Slide 18: Net Income to Adjusted EBITDA
Net Income to Adjusted EBITDA $M, Combined Company as if Merger Closed 1/1/2016 Three Months Ended Twelve Months Ended December 31, December 31, 2017 2016 2017 2016 Net Income (Net Loss) $ 1,076 $ (178) $ 1,309 $ 236 (Benefit from) provision for income taxes (992) 227 (987) 385 Depreciation and amor
Slide 19: Net Income to Adjusted Net Income and Per Share Data
Net Income to Adjusted Net Income and Per Share Data $M, except per share data Three Months Ended Twelve Months Ended December 31, 2017 December 31, 2017 Net Income $ 1,076 $ 1,309 Benefit from income taxes (992) (987) Purchase accounting amortization 217 770 Income in unconsolidated affiliates (3)
Slide 20: Leverage Ratios
Leverage Ratios $M Gross Debt, net of Original Isue Discount, as of December 31, 2017 $ 10,225 Net Debt as of December 31, 2017 $ 9,266 Adjusted EBITDA for the twelve months ended December 31, 2017 $ 2,047 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) 5.0x Net Leverage Ratio (Net Debt/LTM Ad