Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Barclays Americas Select Franchise Conference 2014
20 slides from Willis Towers Watson Public's conference presentation, May 12, 2014
Slide 1: Willis Group Holdings
Exhibit 99.1 Willis Group Holdings Steven Hearn, Deputy CEO Willis Group May 2014 I Barclays Americas Select Franchise Conference 2014
Slide 2: Disclaimer
Disclaimer Important disclosures regarding forward-looking statements These presentations contain certain “forward- document, including the following: the impact of retail brokerage business our ability to develop new looking statements” within the meaning of Section any regional, national or global
Slide 3: Disclaimer (continued)
Disclaimer Important disclosures regarding forward-looking statements continued our ability to achieve anticipated benefits of any claims against us; and the interruption or loss of therefore also the forward-looking statements acquisition or other transactions in which we may our information proces
Slide 4: Global risk adviser and broker
Global risk adviser and broker Clients Carriers Globally diverse Adviser Broker Placed ~$50 billion client base in >150 in premium in 2013 countries Broad P&C Specialty More than 2,500 Segmented: Large Human Capital & Benefits carrier relationships corporates, small Reinsurance and middle market Cap
Slide 5: Global risk adviser and broker
Global risk adviser and broker Global 2013 metrics North America 4.9% organic commissions and fees 38% 37% growth 19.4% adjusted operating margin 25% $2.64 adjusted EPS International $561 million cash flow from operations 2013 revenue - $3.7 billion • With roots dating to 1828, Willis operates today
Slide 6: Investment highlights
Investment highlights Operate in attractive growth markets • Long-term structural drivers – GDP, trade, inflation, demographics • Growing insurance and broking penetration in developing markets • Expanding set of risks: climate, cyber, health Highly diversified business • Geographically diversified
Slide 7: Our growth opportunities
Our growth opportunities • Faster growth geographies, industries and sectors • Latin America, Asia, Reinsurance, Global Wealth Solutions • Global healthcare and demographic changes • The Willis Advantage exchange in the U.S. • Growing employee benefits demand across the world • Connectivity between
Slide 8: Refining our segment approach: Large Corporates
Refining our segment approach: Large Corporates Opportunity: • Number of companies in U.S. with annual sales of >$1 billion grew 5% 2010 - 2012 • Commissions and fees paid by the same group grew 10% over that period Approach: • Focus on products and industries where we can win • Develop deep analyti
Slide 9: Refining our segment approach: Small and Middle Market clients
Refining our segment approach: Small and Middle Market clients Opportunity: • Small proportion of revenues today • Drive profitability and growth Approach: • More cost effective model to improve profitability • Manage as a separate practice in North America with national leadership • Use insurance f
Slide 10: Accelerating our Human Capital & Benefits strategy
Accelerating our Human Capital & Benefits strategy Opportunity: • Over $500 million of Willis revenue globally in 2013 • Opportunity to take market share in disaggregated U.S. market,driven by complex healthcare reform act • Willis employee benefits business in Europe is growing faster than P&C • Em
Slide 11: Refining our approach to inorganic growth
Refining our approach to inorganic growth Opportunity: • Inorganic growth will supplement our organic growth to drive mid-teens shareholder returns over the medium term Approach: • Meaningful uptick in number of transactions being evaluated • Seek value-additive acquisitions (quality, market leaders
Slide 12: Refining our approach to inorganic growth: Gras Savoye
Refining our approach to inorganic growth: Gras Savoye • Largest provider of insurance brokerage in France with a multi-specialist and integrated positioning and leading African and Eastern European franchises • Passes many qualitative tests for which we evaluate targets: • Quality • Market leadersh
Slide 13: Operational improvement program: expected savings and charge summary
Operational improvement program- expected savings and charge summary We will report regularly on realized savings and actual charges $ million (estimated) 2014 2015 2016 2017 2018 + Expected savings $5 Source of savings $45 Estimated split $135 $235 30% Cumulative savings $5 $50 $185 $420 (2014-2017
Slide 14: Operational improvement program - key levers and target operational outcomes
Operational improvement program - key levers and target operational outcomes Key levers Target outcomes over life of program Relocation of roles • Minimum 3,500 support roles moved from higher to lower cost locations • Ratio of total employees in higher / lower cost locations shifted from current 80
Slide 15: Strategic benefits of realized program
Strategic benefits of realized program Key levers Target outcomes over life of program Step-up in operational • Resources rebalanced to optimal locations efficiency • Enhanced operational excellence in systems • Reduce our operational cost base Continued investment for • A majority of savings expect
Slide 16: Objective of mid-teens total shareholder return over medium term
Objective of mid-teens total shareholder return over medium term Targeting mid-single Targeting minimum 70 Flattening capital digit organic revenue bps of positive spread - expenditures and growth adjusted basis pension funding Improving cash generation 2013 / 2014 Invest in the business for growth
Slide 17: Appendix
Appendix
Slide 18: Non-GAAP measures: 2013 Commissions and fees growth
Important disclosures regarding Non-GAAP measures: 2013 Commissions and fees growth FY Reported Growth 5.1% Willis Group Acquisitions & Disposals / other 0.5% Holdings Foreign Currency Movements -0.3% Organic Growth 4.9% Barclays Americas Select Franchise Conference 2014 18
Slide 19: Non-GAAP measures: Adjusted operating income
Important disclosures regarding Non-GAAP measures: Adjusted operating income FY (In millions) 2013 Operating Income $663 - Excluding: - Fees related to the extinguishment of debt 1 - Expense reduction initiative 46 Adjusted Operating Income $710 Operating Margin 18.1% Adjusted Operating Margin 19.4%
Slide 20: Non-GAAP measures: Adjusted net income
Important disclosures regarding Non-GAAP measures: Adjusted net income FY (In millions) 2013 Net Income $365 - Excluding: - Fees related to the extinguishment of debt 1 - Loss on extinguishment of debt 60 - Expense reduction initiative 38 - Deferred tax valuation allowance 9 - Net (gain) loss on dis
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