Iqvia Holdings, Inc. · NYSE:IQV
Iqvia — QuintilesIMS — Q4 2016 Earnings Presentation
22 slides from Iqvia's earnings presentation, Feb 14, 2017
Slide 1: QuintilesIMS Q4 2016 Earnings Call
QuintilesIMS Q4 2016 Earnings Call February 14, 2017 Copyright © 2016 QuintilesIMS. All rights reserved.
Slide 2: Legal
Legal This presentation should be viewed in conjunction with QuintilesIMS’s Q4 2016 earnings call Safe Harbor Statement This presentation contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Sect
Slide 3: Update
Update Delivered on Financial Commitments Operational Discipline Integration Execution Reorganization CRO Commercial Strategy Refinement Data Enabled Site ID Optimization Increased Share Repurchase Authorization to $2.5B 2
Slide 4: 4th Quarter Results: Assumes Merger Closed 1/1/2015
4th Quarter Results: Assumes Merger Closed 1/1/2015 $M, except per share data Revenue Adjusted EBITDA (2,3) +4.2% (1) @ CFx +14.5% @ CFx +3.5% (1) @ AFx +16.7% @ AFx $2,008 $55 (1) $1,953 $541 $1,939 $463 Q4 2016 Q4 2015 Q4 2016 Q4 2015 Deferred Revenue Add-back Dollars are at actual foreign exchang
Slide 5: 4th Quarter Revenue
4th Quarter Revenue $M Assumes Merger Closed Quintiles Standalone 1/1/2015 Segment VPY% VPY% VPY% VPY% 2016 2015 (2) 2015 (3) AFx CFx AFx CFx Legacy IMS Comm. $860 $811 6.1% 6.9% - - - Legacy Q Comm. $74 $86 (14.2)% (14.0)% $86 (14.2)% (14.0)% Commercial Solutions $934 $897 4.2% 4.9% $86 984.6% 992.
Slide 6: 4th Quarter Adjusted EBITDA
4th Quarter Adjusted EBITDA $M Assumes Merger Closed Quintiles Standalone 1/1/2015 VPY% VPY% VPY% VPY% 2016 2015 (2) 2015 (2) AFx CFx AFx CFx Adj. EBITDA (1) $541 $463 16.7% 14.5% $231 133.7% 129.2% Adj. EBITDA 27.7% 23.9% 380 bps 310 bps 20.5% 720 bps 650 bps Margin Adj. EBITDA Margin without 26.9%
Slide 7: 4th Quarter 2016 P&L
4th Quarter 2016 P&L $M, except per share data, at reported FX rates Net Loss / Income $(178) Diluted Loss / Earnings per Share $(0.74) Adjusted Net Income (1) $266 Adjusted Diluted Earnings per Share (1) $1.09 (1) See reconciliations of non-GAAP items in appendix 6
Slide 8: Full-Year Revenue
Full-Year Revenue $M Assumes Merger Closed 1/1/2015 Quintiles Standalone Segment VPY% VPY% VPY% VPY% 2016 2015 (2) 2016 2015 (3) AFx CFx AFx CFx Legacy IMS Comm. $3,224 $2,917 10.5% 11.3% $860 - - - Legacy Q Comm. $291 $323 (9.8)% (9.6)% $291 $323 (9.8)% (9.6)% Commercial $3,515 $3,241 8.5% 9.1% $1,
Slide 9: Net New Business and Backlog on a Contracted Basis
Net New Business and Backlog on a Contracted Basis $B, except BTB & Backlog Coverage As of Last Twelve Months Next Twelve Months 12/31/16 Net New Backlog Backlog Estimated to Book-to-Bill Backlog Business Coverage (1) Convert to Revenue ~$4.3 1.25x 2.73x ~$9.5 ~$2.9 Dollars are at actual foreign exc
Slide 10: Full-Year Adjusted EBITDA
Full-Year Adjusted EBITDA $M Assumes Merger Closed 1/1/2015 Quintiles Standalone VPY% VPY% VPY% VPY% 2016 2015 (2) 2016 2015 (2) AFx CFx AFx CFx Adj. EBITDA (1) $1,956 $1,736 12.6% 9.1% $1,244 $850 46.3% 40.5% Adj. EBITDA 25.3% 24.0% 130 bps 50 bps 23.2% 19.7% 350 bps 260 bps Margin Adj. EBITDA Marg
Slide 11: 4th Quarter 2016 Balance Sheet Items & Metrics
4th Quarter 2016 Balance Sheet Items & Metrics $M, at reported FX rates Cash & Cash Equivalents $1,198 Principal Balance of Debt (1) $7,219 Gross Leverage Ratio (2) 3.7x Net Leverage Ratio (2) 3.1x Net Cash Provided by Operating $447 Activities Capital Expenditures $86 Free Cash Flow $361 (1) Exclud
Slide 12: Foreign Currency Movement Since Sept 2016
Foreign Currency Movement Since Sept 2016 EUR, JPY and GBP vs. USD 0% ~5.5% Decline ~6.5% Decline (10%) ~13.5% Decline (20%) Sept 16 Dec 16 Euro Yen Pound Foreign Currency movements are measured against the U.S. Dollar Exchange rates are as of month-end 11 Source: Central Bank of Italy
Slide 13: Full-Year 2017
Full-Year 2017 $M, except per share data Revenue at Constant Currency 8,125 – 8,225 FX Impact (125) Revenue at Actual Currency 8,000 – 8,100 Commercial Solutions 3,600 – 3,650 Research & Development Solutions 3,655 – 3,690 Integrated Engagement Services 745 – 760 Adjusted EBITDA 2,000 – 2,100 Adjust
Slide 14: Q1 2017 Guidance
Q1 2017 Guidance $M, except per share data Revenue 1,890 – 1,925 Commercial Solutions 850 – 865 Research & Development Solutions 855 – 870 Integrated Engagement Services 185 – 190 Adjusted EBITDA 450 – 465 Adjusted Diluted EPS 0.93 – 0.97 Dollars are at actual foreign exchange rates, revenue does no
Slide 15: QuintilesIMS
Q) QuintilesIMS” 14
Slide 16: Appendix: Historical Segment Revenue & Non-GAAP Financial Measures
Appendix: Historical Segment Revenue & Non- GAAP Financial Measures 15
Slide 17: Segment Revenue and Adjusted EBITDA
Segment Revenue and Adjusted EBITDA $M, Combined Company as if Merger Closed 1/1/2015 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 Commercial Solutions (1) $897 $849 $872 $861 $934 R&D Solutions $837 $835 $887 $869 $882 Integrated Engagement $205 $198 $210 $196 $192 Services Revenue $1,939 $1,881 $1,969
Slide 18: Net Income to Adjusted EBITDA
Net Income to Adjusted EBITDA $M, Combined Company as if Merger Closed 1/1/2015 2015 Q4 2016 Q1 2016 Q2 2016 Q3 Net Income (1) $ 134 $ 150 $ 111 $ 153 Provision for (benefit from) income taxes 70 63 44 52 Depreciation and amortization 113 119 120 124 Interest expense, net 69 71 68 72 (Income) loss i
Slide 19: Net Income to Adjusted EBITDA
Net Income to Adjusted EBITDA $M, Historical Data for Quintiles Standalone Three Months Ended Twelve Months Ended December 31, December 31, 2016 2015 2016 2015 Net Income $ (178) $ 105 $ 115 $ 387 Provision for (benefit from) income taxes 227 51 345 159 Depreciation and Amortization 190 35 288 127 I
Slide 20: Net Income to Adjusted EBITDA
Net Income to Adjusted EBITDA $M, Combined Company as if Merger Closed 1/1/2015 Three Months Ended Twelve Months Ended December 31, December 31, 2016 2015 2016 2015 Net Income $ (178) $ 134 $ 236 $ 804 Provision for (benefit from) income taxes 227 70 385 (41) Depreciation and Amortization 190 113 55
Slide 21: Net Income to Adjusted Net Income & Per Share Data
Net Income to Adjusted Net Income & Per Share Data $M, except per share data Three Months Ended December 31, 2016 Net Income $ (178) Provision for income taxes 227 Purchase Accounting Amortization 131 (Income) Loss from Unconsolidated Affiliates 3 (Income) Loss from Minority Interest 3 Deferred reve
Slide 22: Leverage Ratios
Leverage Ratios $M Gross Debt as of December 31, 2016 $ 7,219 Net Debt as of December 31, 2016 $ 6,021 Adjusted EBITDA (1) for the twelve months ended December 31, 2016 $ 1,956 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) 3.7x Net Leverage Ratio (Net Debt/LTM Adjusted EBITDA) 3.1x (1) LTM A