#1Q1 2023 Earnings Call April 27, 2023 2025. All rights reserved QVIA" is a registered trademark of IOVIA inc in the United States, the European Union, and various other countries IQVIA 1#2Legal This presentation should be viewed in conjunction with IQVIA's Q1 2023 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 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, our second-quarter and full-year 2023 guidance. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "assume," "anticipate,” “intend," "plan," "forecast,” “believe,” “seek," "see," "will," "would," "target," similar expressions, and variations or negatives of these words that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from our expectations due to a number of factors, including, but not limited to, the following: business disruptions caused by natural disasters, pandemics such as the COVID-19 (coronavirus) outbreak, including any variants, and the public health policy responses to the outbreak, international conflicts or other disruptions outside of our control such as the current situation in Ukraine and Russia; our ability to accurately model or forecast the impact of the spread and/or containment of COVID-19, including any variants, among other sources of business interruption, on our operations and financial results; most of our contracts may be terminated on short notice, and we may lose or experience delays with large client contracts or be unable to enter into new contracts; the market for our services may not grow as we expect; we may be unable to successfully develop and market new services or enter new markets; imposition of restrictions on our use of data by data suppliers or their refusal to license data to us; any failure by us to comply with contractual, regulatory or ethical requirements under our contracts, including current or changes to data protection and privacy laws; breaches or misuse of our or our outsourcing partners' security or communications systems; failure to meet our productivity or business transformation objectives; failure to successfully invest in growth opportunities; our ability to protect our intellectual property rights and our susceptibility to claims by others that we are infringing on their intellectual property rights; the expiration or inability to acquire third party licenses for technology or intellectual property; any failure by us to accurately and timely price and formulate cost estimates for contracts, or to document change orders; hardware and software failures, delays in the operation of our computer and communications systems or the failure to implement system enhancements; the rate at which our backlog converts to revenue; our ability to acquire, develop and implement technology necessary for our business; consolidation in the industries in which our clients operate; risks related to client or therapeutic concentration; government regulators or our customers may limit the number or scope of indications for medicines and treatments or withdraw products from the market, and government regulators may impose new regulatory requirements or may adopt new regulations affecting the biopharmaceutical industry; the risks associated with operating on a global basis, including currency or exchange rate fluctuations and legal compliance, including anti-corruption laws; risks related to changes in accounting standards; general economic conditions in the markets in which we operate, including financial market conditions, inflation, and risks related to sales to government entities; the impact of changes in tax laws and regulations; and our ability to successfully integrate, and achieve expected benefits from, our acquired businesses. For a further discussion of the risks relating to our business, see the "Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission (the "SEC"), as such factors may be amended or updated from time to time in our subsequent periodic and other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We assume no obligation to update any such forward-looking statement after the date of this release, whether as a result of new information, future developments or otherwise. Past Performance In all cases where historical results are presented or past performance is described, we note that past performance is not a reliable indicator of future results and performance. Trademarks All trademarks or service marks are the property of IQVIA or their respective owners. Solely for convenience, the trademarks, service marks and trade names are referenced without the Ⓡ, (SM) and (TM) symbols, but we will assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these marks. IQVIA 2#3Legal Non-GAAP Information This presentation includes information based on financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"), such as Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted Earnings per Share, and Free Cash Flow. Non-GAAP financial measures are presented only as a supplement to the company's financial statements based on GAAP. Non-GAAP financial information is provided to enhance understanding of the company's financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP, and non-GAAP measures should not be considered in isolation from, or as a substitute analysis for, the company's results of operations as determined in accordance with GAAP. The company uses non-GAAP measures in its operational and financial decision making and believes that it is useful to exclude certain items in order to focus on what it regards to be a more meaningful indicator of the underlying operating performance of the business. For example, the Company excludes all the amortization of intangible assets associated with acquired customer relationships and backlog, databases, non-compete agreements and trademarks, trade names and other from non-GAAP expense and income measures as such amounts can be significantly impacted by the timing and size of acquisitions. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that revenue generated from such intangibles is included within revenue in determining net income attributable to IQVIA Holdings Inc. As a result, internal management reports feature non-GAAP measures and are used to prepare strategic plans and annual budgets and review management compensation. The company also believes that investors may find non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures. The non-GAAP financial measures are not presented in accordance with GAAP. Please refer to the appendix of this presentation for reconciliations of non-GAAP financial measures contained herein to the most directly comparable GAAP measures. Our second-quarter and full-year 2023 guidance measures (other than revenue) are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. Such items include, but are not limited to, acquisition related expenses, restructuring and related expenses, stock-based compensation and other items not reflective of the company's ongoing operations. Non-GAAP measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to the company, many of which present non-GAAP measures when reporting their results. Non-GAAP measures have limitations as an analytical tool. They are not presentations made in accordance with GAAP, are not measures of financial condition or liquidity and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. Non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider such performance measures in isolation from, or as a substitute analysis for, the company's results of operations as determined in accordance with GAAP. IQVIA 3#41st Quarter Results $M, except per share data Revenue 2.4% AFX 4.7% CFx Adjusted EBITDA (1) Adjusted Diluted EPS (1) 4.8% AFX (0.8)% AFX $3,652 $3,568 $851 $812 $2.45 $2.47 Q1 2023 Q1 2022 Dollars are at actual foreign exchange rates. AFx is actual currency. CFx is constant currency. (1) See reconciliation of non-GAAP items in the Appendix. Q1 2023 Q1 2022 Q1 2023 Q1 2022 IQVIA 4#51st Quarter Revenue $M 2023 2022 VPY% AFX VPY% CFX Technology & Analytics Solutions $1,444 $1,439 0.3% 2.9% Research & Development Solutions $2,026 $1,934 4.8% 6.5% Contract Sales & Medical Solutions $182 $195 (6.7)% (1.0)% Revenue Dollars are at actual foreign exchange rates. AFx is actual currency, CFx is constant currency. $3,652 $3,568 2.4% 4.7%#61st Quarter Profit $M, except per share data 2023 2022 Adjusted EBITDA (1) $851 $812 Net Income $289 $325 Diluted Earnings per Share $1.53 $1.68 Adjusted Net Income (1) $462 $477 Adjusted Diluted Earnings per Share (1) $2.45 $2.47 Dollars are at actual foreign exchange rates. 1. See reconciliations of non-GAAP items in appendix.#7R&D Solutions Backlog $B $23.9 $22.6 $23.2 $21.7 $20.5 $19.6 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Dollars are at actual foreign exchange rates. Up over 40% since Q1 2020 $24.4 $24.8 $27.9 $27.2 $25.3 $25.6 $25.8 Up over 10% YoY Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 IQVIA 7#81st Quarter Balance Sheet and Cash Flow Items and Metrics $M Cash & Cash Equivalents Gross Debt Net Debt $1,494 $13,176 $11,682 Gross Leverage Ratio (1) 3.89x Net Leverage Ratio (1) 3.45x Net Cash Provided by Operating Activities $417 Capital Expenditures $164 Free Cash Flow (2) $253 Dollars are at actual foreign exchange rates. 1. Calculated using last twelve months Adjusted EBITDA. 2. See reconciliation of non-GAAP items in the Appendix. IQVIA 8#9Full Year 2023 Guidance $M, except per share data Revenue Adj. EBITDA Guidance VPY% $15,150 $15,400 5.1% -6.9% $3,625 $3,695 8.3% 10.4% Adj. Diluted EPS $10.26 $10.56 - 1.0% 3.9% (1) (1) Adjusted Diluted EPS growth would be 11 to 14%, excluding the year-over-year impact of the step-up in interest rates and the increase in the UK corporate tax rate All financial guidance assumes April 25, 2023 foreign exchange rates remain in effect for the guidance period. +9% to 11% excluding the impact of FX, acquisitions and COVID-related work IQVIA 9#10Q2 2023 Guidance $M, except per share data Revenue Adjusted EBITDA Guidance $3,675 - $3,750 $850 - $875 Adjusted Diluted EPS $2.30 $2.44 All financial guidance assumes April 25, 2023 foreign exchange rates remain in effect for the forecast period. IQVIA 10#11Q&A IQVIA#12Net Income to Adjusted EBITDA Reconciliation (in millions) Net Income Provision for income taxes Depreciation and amortization Interest expense, net Loss in unconsolidated affiliates Deferred revenue purchase accounting adjustments Stock-based compensation Other (income) expense, net (1) Restructuring and related expenses (2) Acquisition related expenses Adjusted EBITDA (1) (2) €2 Three Months Ended March 31, 2023 2022 $ 289 $ 325 71 71 253 255 135 85 2 4 1 75 30 (15) 11 30 18 11 12 $ 851 $ 812 Reflects certain non-operating income items, revaluations of contingent consideration and certain non-recurring expenses. Reflects restructuring costs as well as accelerated expenses related to lease exits. IQVIA 12#13Net Income to Adj. Net Income and Per Share Data Reconciliation Three Months Ended March 31, (in millions, except per share data) Net Income Provision for income taxes Purchase accounting amortization (1) Loss in unconsolidated affiliates Deferred revenue purchase accounting adjustments Stock-based compensation Other (income) expense, net (2) Restructuring and related expenses (3) Acquisition related expenses Adjusted Pre Tax Income 2023 2022 289 $ 325 71 71 123 134 2 4 1 75 30 (15) 11 30 18 11 12 586 $ 606 Adjusted tax expense (124) (129) Adjusted Net Income $ 462 $ 477 Adjusted earnings per share attributable to common stockholders: Basic Diluted SAS9 Weighted average common shares outstanding: Basic Diluted 2.49 $ 2.51 2.45 $ 2.47 185.8 190.0 188.6 193.4 (1) Reflects all the amortization of acquired intangible assets. (2) (3) Reflects certain non-operating income items, revaluations of contingent consideration and certain non-recurring expenses. Reflects restructuring costs as well as accelerated expenses related to lease exits. IQVIA 13#14Operating Cash Flow to Free Cash Flow Reconciliation (in millions, except per share data) Net Cash provided by Operating Activities Acquisition of property, equipment and software Free Cash Flow Three Months Ended March 31, 2023 417 (164) 253 IQVIA 14#15Leverage Ratios (in millions) Gross Debt, net of Unamortized Discount and Debt Issuance Costs, as of March 31, 2023 Net Debt as of March 31, 2023 Adjusted EBITDA for the twelve months ended March 31, 2023 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) Net Leverage Ratio (Net Debt/LTM Adjusted EBITDA) 好 A A 13,176 11,682 3,385 3.89x 3.45x IQVIA 15