Slide 1: Q1 2018 Earnings Call
Q1 2018 Earnings Call May 2, 2018 Copyright © 2017 IQVIA. All rights reserved.
Slide 2: Legal
Legal This presentation should be viewed in conjunction with IQVIA’s Q1 2018 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: 1st Quarter Results
1st Quarter Results $M, except per share data Revenue Adjusted EBITDA Adjusted Diluted EPS +8.6% AFx +8.5% AFx +19.6% AFx +5.2% CFx +7.4% CFx $1.34 $2,563 $547 $2,360 $504 $1.12 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Dollars are at actual foreign exchange rates. AFx is actual currency, CFx
Slide 4: 1st Quarter Adjusted EBITDA Margin Expansion
1st Quarter Adjusted EBITDA Margin Expansion CFx 120 bps 100 bps (180) bps 40 bps Revenue Integration/ Investments/ Margin Conversion Cost Synergy Acquisitions Expansion 3
Slide 5: 1st Quarter Revenue
1st Quarter Revenue $M 2018 2017 VPY% AFx VPY% CFx Commercial Solutions $985 $863 14.1% 9.3% R&D Solutions $1,365 $1,263 8.1% 5.8% Integrated Engagement $213 $234 (9.0)% (12.8)% Services Revenue $2,563 $2,360 8.6% 5.2% Dollars are at actual foreign exchange rates. AFx is actual currency, CFx is cons
Slide 6: 1st Quarter Profit
1st Quarter Profit $M, except per share data 2018 2017 Adjusted EBITDA (1) $547 $504 Net Income $69 $100 Diluted Earnings per Share $0.32 $0.43 Adjusted Net Income (1) $285 $264 Adjusted Diluted Earnings per Share (1) $1.34 $1.12 Dollars are at actual foreign exchange rates. (1) See reconciliations
Slide 7: R&D Solutions LTM Contracted Services Net New Business
R&D Solutions LTM Contracted Services(1) Net New Business $B +15.7% 4.72 4.08 LTM Q1 17 LTM Q1 18 Dollars are at actual foreign exchange rates. LTM: Last twelve months. 6 (1) Services Net New Business excludes reimbursed expenses (i.e. pass through).
Slide 8: R&D Solutions Net New Business
R&D Solutions Net New Business Pass through not finalized at contract signature • Pass through bookings do not have the same degree of precision as service bookings • Pass through is subject to more fluctuation than service bookings during the life of a contract Mix of business • Strategic decision
Slide 9: R&D Solutions ASC 606 Backlog
R&D Solutions ASC 606 Backlog $B Backlog as of 12/31/2017 $14.84 Backlog as of 03/31/2018 $15.16 LTM Backlog Coverage (1) 2.91x NTM Backlog Estimated to be Converted to Revenue ~$4.6 Dollars are at actual foreign exchange rates. LTM: Last twelve months; NTM: Next twelve months. 8 (1) Backlog coverag
Slide 10: Balance Sheet and Cash Flow Items and Metrics
Balance Sheet and Cash Flow Items and Metrics $M Cash & Cash Equivalents $960 Debt $10,446 Gross Leverage Ratio (1) 5.1x Net Leverage Ratio (1) 4.6x Net Cash Provided by Operating Activities $182 Capital Expenditures $(88) Free Cash Flow $94 Dollars are at actual foreign exchange rates. 9 (1) Calcul
Slide 11: Full-Year 2018 Guidance
Full-Year 2018 Guidance $M, except per share data Current Prior Revenue $10,050 - $10,250 $10,000 - $10,200 VPY% 3.6% - 5.6% 3.1% - 5.1% Adjusted EBITDA $2,150 - $2,220 $2,150 - $2,220 VPY% 7.0% - 10.4% 7.0% - 10.4% Adjusted Diluted EPS $5.20 - $5.45 $5.20 - $5.45 VPY% 14.3% - 19.9% 14.3% - 19.9% Ad
Slide 12: Q2 2018 Guidance
Q2 2018 Guidance $M, except per share data 2017 Recast 2018 Guidance VPY% Revenue $2,355 $2,470 - $2,520 4.9% - 7.0% Adjusted EBITDA $467 $510 - $530 9.2% - 13.5% Adjusted Diluted EPS $1.03 $1.17 - $1.24 13.6% - 20.4% Dollars are at actual foreign exchange rates. Guidance assumes current exchange ra
Slide 13: IMS Health & Quintiles are now IQVIA
IMS Health & Quintiles are now VIA 12
Slide 14: Appendix
IMS Health & Quintiles are now VIA = Appendix 13
Slide 15: 2017 Recast for Accounting Standard ASC 606
2017 Recast for Accounting Standard ASC 606 $M Q1 Q2 Q3 Q4 FY Commercial Solutions $863 $885 $898 $1,036 $3,682 R&D Solutions 1,263 1,232 1,341 1,269 5,105 Integrated Engagement Services 234 238 227 216 915 Recast Revenue $2,360 $2,355 $2,466 $2,521 $9,702 Recast Adjusted EBITDA $504 $467 $513 $526
Slide 16: Net Income to Adjusted EBITDA
Net Income to Adjusted EBITDA $M Three Months Ended March 31, 2018 2017 Net Income $ 69 $ 100 Provision for income taxes 19 24 Depreciation and amortization 282 232 Interest expense, net 94 73 (Income) loss in unconsolidated affiliates (7) 1 Income from non-controlling interests 4 2 Deferred revenue
Slide 17: 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 March 31, 2018 2017 Net Income $ 69 $ 100 Provision for income taxes 19 24 Purchase accounting amortization 218 177 (Income) loss in unconsolidated affiliates (7) 1 Income from non-controlling interests
Slide 18: Leverage Ratios
Leverage Ratios $M Gross Debt, net of Original Issue Discount, as of March 31, 2018 $ 10,446 Net Debt as of March 31, 2018 $ 9,486 Adjusted EBITDA for the twelve months ended March 31, 2018 $ 2,053 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) 5.1x Net Leverage Ratio (Net Debt/LTM Adjusted E