Icf International, Inc. · NASDAQ:ICFI
Icf International — Investor Day (May 2022)
74 slides from Icf International's investor day presentation, May 25, 2022
Slide 1: Welcome - 2022 Investor Day
Slide 2: Welcome
— > Welcome John Wasson Chair and CEO
Slide 3: 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 4: ICF: A professional & technology services firm
ICF: A professional & technology services firm Tce Serve government clients with social & environmentalmissions, energy utilities & other commercial clients Leverage deep domain expertise to achieve superior results for clients Deliver implementation capabilities in technology, engagement, workforce
Slide 5: A look back: 2019 Investor Day
A look back: 2019 Investor Day Four major catalysts for long-term growth Ace Digital transformation/ IT modernization ip Disaster management KZ Federal health re Energy efficiency & utility consulting r Mid-single digit revenue growth
Slide 6: Since 2019—strengthening our position in high-growth markets
Since 2019—strengthening our position in high-growth markets Climate, Environment & Infrastructure added as 5% growth catalyst Ace + 33° Organic investments eh & Acquisitions High single digit organic service revenue growth Enhanced margins
Slide 7: Our culture: a source of competitive advantage
Our culture: a source of competitive advantage \ Purpose To build a more prosperous andiresilient world for all. Values Interagt with integrity Bring your passion Embrace differences Challenge assumptions Work together Be greater than
Slide 8: Agenda
Agenda 2:40 PM U.S. Federal Government Market Overview Digital Transformation/IT Modernization & Federal Health Panel Disaster Management, Climate & Energy Overview Disaster Management Panel 4:00 PM Climate & Infrastructure Panel Commercial Energy Panel Corporate Citizenship & Impact Business Operat
Slide 9: U.S. Federal Government Market
> U.S. Federal Government Market TICE Mark Lee Executive Vice President & Group Lead, Public Sector
Slide 10: Market opportunity
Market opportunity Strong partnerships with 49% of ICF’s $200B+ nearly every federal agency total revenue addressable federal ci 8.9% HHS 20% us.state& © Local 15% increase in federal civilian wm DOS 6% budget, YoY B DoD 4% wm EPAI% $160B 376% mm GsA2% projected federal federal spending on me Fccox.
Slide 11: Expanding our technology and health IT capabilities
Expanding our technology and health IT capabilities TG acquisition By 2025, 70% of new applications developed by enterprises willuse low-code technologies. ServiceNow, Appian ESAC acquisition Business buyers dominate the growth in data and analytics spending, AWS, Google Creative acquisition By 2025
Slide 12: A refreshed strategy
Arefreshed strategy Our focus is driving successful outcomes for our clients by leveraging technology, domain expertise, and an in-depth understanding of how people ultimately drive the outcomes.
Slide 13: Robust federal pipeline and contract awards growth
Robust federal pipeline and contract awards growth Pipeline — up 57% Contract awards — up 131% $B $B 55 125 5 1 45 075 4 os 35 028 3 | ° 2019 2020 2021 20221) 2010 2020 2021 wm Active pipeline Nowbusiness mRecompete
Slide 14: Digital Transformation/IT Modernization & Federal Health
Slide 15: Our digital modernization business
Our digital modernization business Technologies Digital Service Center
Slide 16: Digital modernization market
Digital modernization market y . Leading capabilities Market trends Customer outcomes Shift to mission-based solutions Convergence of platform and low-code solutions, democratization of IT, and zero trust driving more missionfocus. Digital Services Center Total experience Business and a ees technolo
Slide 17: ICF's digital modernization business
ICF’s digital modernization business 1,000 technologists $350M annual revenue 100% $150M clientretention annual open source solutions revenue ‘anne | 2021 Trusted Delivery Award The new low-code platform leader in U.S. federal summer ‘market PARTNER HHS HQ, FDA, CDC, NIH, ASFR, IHS, OIG, ASH, ACF, C
Slide 18: Project highlight: Transforming the National Cancer Institute
PROJECTHIGHLIGHT Transforming the National Cancer [NiHy) caer Institute Enterprise architecture Health research ‘Agilesofware development _Advisory services on Clinicaldata & Innyati cancer analytics Modernized systems Platforms onboarded Releases per year Employees, partners & researchers Security
Slide 19: Federal Health
Slide 20: Our federal health business
Our federal health business Key offerings Data Training & management, _ technical analysis & assistance dissemination Health Health communications surveillance Research & evaluation Our people 2K+ health professionals Epidemiologists Microbiologi ~$350M annual fevers Psychologists Toxicologists Gene
Slide 21: Federal health market
Federal health market Addressable Target agencies Budget trends Market trends civilian market FY 2022: TI% increase in Emphasis on social HHS discretionary determinants of health Public health & CDC, USAID, funding & health equity social services ~$9B ‘ACF, SAMHSA Demand for trustworthy, Healthi FY
Slide 22: Project highlight
PROJECTHIGHLIGHT N Uses advanced data and statistical techniques to catalog and provide information from studies across all states and countries US. National brary of| Medicine Makes clinical trial research and results accessible to everyone who needs it, including the researchers, patients, and fam
Slide 23: Panel Q&A
Panel Q&A
Slide 24: Disaster Management, Climate & Energy
> Disaster Management, Climate & Energy TICE Anne Choate Executive Vice President and Group Lead, Energy, Environment & Infrastructure
Slide 25: Market opportunities in Disaster, Climate & Energy
Market opportunities in Disaster, Climate & Energy $3B \ddressable disaster response, recovery, and mitigation spend $1B $1.5-3B addressable climate-related spend addressable utility spend on energy efficiency/DR $550B IWA funding >$200B ‘annual power sector capex +300% projected renewable and stora
Slide 26: A global moment of challenge & opportunity
A global moment of challenge & opportunity “gin, > Client categories Priority investment areas Market shaping folnee US. Federal Infrastructure State & local Climate change & Extreme weather Utilities & other exe energy response & recovery Aging infrastructure a _ intenecanal Resilience & reliabilit
Slide 27: ICF's strategic advantage
ICF’s strategic advantage Strategy development Planning & permitting Financing Modeling Stakeholder engagement Siting Behavioral analysis & incentive optimization Workforce development Affordability reviews Monitoring
Slide 28: Stable pipeline & steadily increasing contract awards
Stable pipeline & steadily increasing contract awards State & local government & commercial energy Pipeline Contract awards 25 9000 20 18 $B 8 8 10 os 20 00 2020 2021 2022.21 2020 201 2022 Q1T™M, smstate & local ‘mState & local Commercial energy
Slide 29: Disaster Management
Slide 30: Market opportunity
Market opportunity FEMA Public Assistance Mitigation (FEMA + HUD) HUD CDBG-DR $66B $14.3B $4.25B $1.9B om $717M program $212M program addressable market value addressable market value addressable market value DRF Appropriations (¢s) 20 70 $20B es $6B 20 s a 2 3| $148 3| $4.25B 30 6 6 20 3 3 3 4 10 8
Slide 31: Disaster management market & our growth drivers
Disaster management market & our growth drivers Differentiators ; Federal, state and local Coastal More damaging grant and financial migration incidents management Mitigation and resilience in all relevant sectors Ill-adapted Stretched state & infrastructure local workforce Apply technology to disas
Slide 32: Addressing state & local disaster recovery
Addressing state & local disaster +) recovery "2,020 families in 2020 with 3 months to spare. As the program historian, | can confirm we have never been this fast before. homes 'rehabiltated Federal mitigation funds managed to date
Slide 33: Calcasieu Parish School Board
Calcasieu Parish School Board Addressing state & local disaster recovery Team on ground 72 hours after the disaster Providing procurement, contracting, debris management and monitoring, accounting, finance, audits, appeals, hazard mitigation and more $320 75 million in total campuses damages operati
Slide 34: Panel Q&A
Panel Q&A
Slide 35: Break
Slide 36: Climate & Infrastructure
Kot a pie Climate & Infrastructure Phil MihImester. Executive Vice President, Global Energy = Marian Van Pelt Senior Vice Presi Climate & Cle:
Slide 37: IIJA money is flowing to deeply-rooted ICF client sectors
IIJA money is flowing to deeply-rooted ICF client sectors Addressable market size from IIJA opportunities at $1-2B/year over 5+ years U.S. Federal Government State & Local Government Industry ~ Significant presence in all major funding ~ Positioned to assist grantees in project * Major provider of c
Slide 38: Climate
Climate Marian Van Pelt ‘Senior Vice President, Climate & Clean Energy _ od
Slide 39: Climate market
Climate market Carbon accounting, disclosure & target setting Cost/benefit/ vulnerability assessments $1.5-3B State & Decarbonization > addressable market pathways design growing at high single digits annually US. federal Policy/program support > her tional Infrastructure planning > con Utility & no
Slide 40: ICF's climate business
ICF’s climate business Poised to inform policy, investments and implementation Technology portfolio tomeet market demand co: ight h @ ClimateSight Capabilities S| Policy and planning GHG monitoring, reporting and verification gl platformfor ‘decarbonization & energy. | ‘Custom climaterisk analytics
Slide 41: Project highlight: Supporting decarbonization and resilience
PROJECT HIGHLIGHT Supporting decarbonization and resilience Climate Change Resilience and Adaptation Sommer ot 2020 ets the gold standard: goal by 2050 Pathways to Carbon-Neutral NYC: MODERNIZE, REIMAGINE. REACH Potty ationalgrid ~@conEdison
Slide 42: Panel Q&A
Panel Q&A
Slide 43: Commercial Energy
Commercial Energy Val Jensen Senior Fellow, Energy Advisory, Policy & Program Implementation David Pickles Senior Vice President, Strategy Energy, Environment & Infrastructure
Slide 44: Forces reshaping the utility industry
Eid Decarbonization Federal, state and local decarboni: policy has reset the utility industry's strategic environment fal Customer awakening + Real recognition that the long- term viability of the monopoly is not guaranteed + Regulators have grown much less tolerant of lackluster customer service Th
Slide 45: These changes create opportunity
These changes create opportunity Eid Decarbonization + Carbon inventories and accounting + Pathways + Program design and implementation + Green asset assessment fal Customer awakening + Behavioral analysis = Customer experience strategy + Program design and implementation Adaptation & resilience + V
Slide 46: ICF's commercial energy business
ICF’s commercial energy business Clients Selected services Powerand Gas &electricuti Program _ Energy efficiency transmission planning& Electrification Flexible Load Management Marketing & IT Innovative rates Distributed Investors Unregulated services resources Oil & gas Developers delivery Advisory
Slide 47: ICF's commercial energy business: utility programs
ICF’s commercial energy business: utility programs Distributed resources Renewabl Energy efficiency Electrification Clients Gas & electric utilities Program planning & delivery Selected services Energy efficiency Electrification Flexible Load Management ~$220M Marketing & IT revenue Innovative rates
Slide 48: Growing opportunities in utility program planning & delivery
Growing opportunities in utility program planning & delivery Traditional energy efficiency market (85%) anticipated to row annuall . 3 v Market share ~5% —___$_— © . . $1.2B addressable Residential 25% Mid single- Non-residential 10% digit to low a double-digit Non-traditional (15%) . growth over (e
Slide 49: ICF: uniquely qualified to address and integrate these issues
ICF: uniquely quali ~ gl ‘ied to address and integrate these issues Be Decarbonization Adaptation & resilience Rise of distributed energy resources + > 110 plans for 5, states, + “Gold Standard” provider + Implemented >400 energy efficiency, cities, counties, & federal of resilience & vulnerability
Slide 50: Project highlight
PROJECTHIGHLIGHT i ACCELERATI Technical assistance, training, benchmarking, contractor and financing referrals for buildings in NYC that must comply with Local Law 97 requiring buildings to improve efficiency Includes a focus on building electrification with heat pumps and incorporation of renewable
Slide 51: Entergy project highlight
DE Fonts AL Feet atid Elect Vehictes $ Custom Entergy eTech portfolio a entergy “Entergy envisions a future where the company not only accelerates our own portfolio transformation, but also partners with customers and other sectors of the economy to help them use energy more efficiently and electrif
Slide 52: Panel Q&A
Panel Q&A
Slide 53: Corporate Citizenship & Impact
> Corporate Citizenship & Impact David Speiser Executive Vice President, Corporate Strategy
Slide 54: Business, environmental and social responsibilities are intertwined
Tice At ICF, our business, environmental + social responsibilities are intertwined: We create impact both in the way we operate and through our client work.
Slide 55: ESG summary
ESG summary ICF is proud of how we operate in our communities and in society Carbonneutral since 2006 — high quality RECs & offsets CDP “A" list CDP Climate Leadership Award Total & per-employee emissions declining since 2013. Social Forbes list for “Best Employers for Diversity” 2021 and 2022 ICF p
Slide 56: For more complete ESG information
For more complete ESG information Our corporate citizenship approach How we engage our stakeholder For more detailed data, information, and the complete narrative of ICF’s Corporate Citizenship andESG posture, please see our Corporate Citizenship Report and our Shareholder Proxy.
Slide 57: We create impact through our client work
We create impact through our client work Enterprise Program Support/ Direct Support Execution Delivery All our programs have Se er (® aS <I F + Program technology + Full program Enterprise IT systems implementation execution Some are easier to + Workforce strategy e riaiting 6 teohnieal quantity! +
Slide 58: Impact through enterprise support
Impact through enterprise support HEH 00 wa cour coo ‘mre rey eco WORK curoxtey fee coma no ts ‘ovcanon rauuir ‘no sto Social Security USAID Department of Health samira ndtuman sewces cae Seer, Depa a ee Department USAID Department of Agency, (es acer! Education European xparent Commision ime ous 80
Slide 59: Impact through program support/execution
2 Impact through program support/execution SNe ENERGY STAR® (2020 data) 520 billion Kilowatt-hours of electricity saved 400 million Metric tons of greenhouse gas reduction BioSense 5,800+ Health care facilities nationwide contribute data T5%+ Emergency department visits reported $42 billion Energy c
Slide 60: Impact through delivery of key energy efficiency programs
joe) Impact through delivery of key energy efficiency programs Vel 160 individual programs we delivered in 2020 Annualized MWh saved* 5.1 million MWh (1 Terawatthours) + Lifetime customer bill savings*** Lifetime tons CO, avoided** 12.1 million metric tons CO, Total financial impact generated $3.4 b
Slide 61: Business Operations & M&A
> Business Operations & M&A James Morgan Chief of Business Operations
Slide 62: Operational focus driving improved margins
Operational focus driving improved margins Operational focus areas Utilization Systems & process maturation Scale economies Real estate consolidation Drive organic margin improvement + Accretive strategic acquisitions Continued investments in growth initiatives and margin expansion
Slide 63: Acquisitions form integral part of our performance
Acquisitions form integral part of our performance ICF has leveraged 22 Create, acquisitions to obtain capabilities and market access . that have become core to our current and future success. cae Some of our larger/more Mostra notable deals over the GuK past two decades include: Jacobs and ‘Sundstr
Slide 64: M&A going forward
M&A going forward Filters - Expands our addressable market + Strengthens domain/technical expertise * Good cultural fit with ICF + Good performers—no fixer-uppers + Familiar/compatible business models Accretive & IRR>WACC jplined process
Slide 65: Financial Overview
sz “ICF > Financial Overview Barry Broadus Chief Financial Officer
Slide 66: Track record of strong financial performance
Track record of strong financial performance Service revenue ($B) $i Non-GAAP EPS $4.82 t 5.4% CAGR t 7.7% CAGR $1.04 $1.00 $4.15 $4.17 LJ 2019 2020 2021 2019 2020 2021 Cash flow from Adjusted EBITDA ($M) $159.6 operations ($M) & t 8.8% CAGR conversion $143.2 $9O14 $10.2 $134.8 ais 2020 gor 2019 202
Slide 67: Strong backlog and pipeline — foundation for growth
Strong backlog and pipeline — foundation for growth Backlog ($B) Pipeline ($B) TTMBook-to-bill ratio. Q120221.27 $3.2 $79 $6.5 $2.4 3 16 Q4 2019 Q12022 Caner apo, mFunded = Unfunded
Slide 68: Capital deployment and capacity
Capital deployment and capacity Acquisitions: 2020: ITG ($255M) 2021: ESAC ($15M) 2021: Creative ($160M) New Credit Agreement $1.3B Term A $300M $240 $387 2 Revolver $600M & i) 8 Cd g 2.95) DDTL$400M 3 2.55x i 4 2.14x 1.28% 20198 20208 20214 2022F Se Leverage I Acauisitioncapacity (SM) Her
Slide 69: 2022 guidance
2022 guidance Strong Q1 performance reinforces our 2022 guidance* Service revenue $1.225B-$1.275B Adjusted EBITDA $168M-$180M Based on Q12022 financial performance released on May 4, 2022 Aer Non-GAAP EPS $5.15-$5.45 Operating cash flow ~$130M
Slide 70: Roadmap & Closing
> Roadmap & Closing John Wasson Chair and CEO
Slide 71: Revenue synergies enabled by strong positions in high growth markets
e revenue synergi enabled by strong _-and larger contract v positions in high growth through abi _.markets and expanded execute at at Bl | = addressable market ‘i \ iH ntinue to invest in
Slide 72: A unique company driving shareholder value
A unique company driving shareholder value High single digit organic service revenue growth + Active and disciplined M&A + Deals we are uniquely positioned for + Capacity to deploy significant additional capital Continued EBITDA margin expansion growth of 65% t 2021's $143M aoe
Slide 73: Q&A
Slide 74: v > fo} x o o PS ea}
v > fo} x o o PS ea}