Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Towers Watson — Q2 2019 Earnings Presentation
16 slides from Willis Towers Watson Public's earnings presentation, Jul 31, 2019
Slide 1: Willis Towers Watson 2019 Second Quarter Financial Results Supplemental Materials
willisto w e r s wat s o n .c o m Willis Towers Watson 2019 Second Quarter Financial Results Supplemental Materials July 31, 2019 © 2019 Willis Towers Watson. All rights reserved.
Slide 2: Forward Looking Statements
Willis Towers Watson Forward Looking Statements willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 1 This document contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other for
Slide 3: Non-GAAP Measures
Willis Towers Watson Non - GAAP Measures willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 2 In order to assist readers of our consolidated financial statements in understanding the core operating results that Willis Towers Watson’s management uses to evaluate the business and
Slide 4: Q2 2019 GAAP Financial Results, Key Figures
Q2 2019 GAAP Financial Results, Key Figures willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 3 $USD million, except EPS and % Three months ending June, Six months ending June, 2018 2019 2018 2019 Revenue as reported % change $1,990 $2,048 +3% $4,282 $4,360 +2% Income from Ope
Slide 5: Q2 2019 Key Figures, Includes Non-GAAP Financial Results
$ 2.0 B Q2 2019 Revenue Q2 2019 Key Figures, Includes Non - GAAP Financial Results Willis Towers Watson reports strong results for Q2 2019 Total Revenue + 6 % Q2 2019 Organic % Strong Growth Momentum Achieved another strong quarter with 6% organic revenue growth after 6% organic revenue growth in Q1
Slide 6: Broad-Based Organic Growth Across All Segments
Organic Revenue Growth %* willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 5 Broad - Based Organic Growth Across All Segments Our unwavering focus to deliver a client winning experience to drive growth Q2 2018 Q2 2019 Human Capital & Benefits 3% 5% Corporate Risk & Broking 2%
Slide 7: Summary of Segment Financial Results Q2 2019
Summary of Segment Financial Results Q2 2019 Segment results compared to Q2 2018 willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 6 As reported, $USD million, except % Q2 2018 Q2 2019 Revenue O p erating Margin % Revenue Operating Margin % Margin Year - over - year Human Capi
Slide 8: Maintaining a Strong and Flexible Balance Sheet Position
Maintaining a Strong and Flexible Balance Sheet Position Significant financial flexibility to drive long - term shareholder value willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 7 $USD million Dec 31, 2018 June 30, 2019 June 30, 2018 Cash and Cash Equivalents 911 1,033 812 T
Slide 9: A Capital Strategy Fit For Creating Long-Term Shareholder Value
A Capital Strategy Fit For Creating Long - Term Shareholder Value CASH RETURNED TO SHAREHOLDERS $ 2.7 B FY2016 to Q2 FY2019 $396 $602 $709 $199 $595 $277 $306 $986 $908 In progress $212 $51 $161 2016 2017 2018 2019 YTD SUSTAINABLE DIVIDEND GROWTH + 11 % Cash dividend growth 3 years CAGR 2016 $0.65 $
Slide 10: Successfully Completed the Acquisition of TRANZACT
Willis Towers Watson Successfully Completed the Acquisition of TRANZACT Purchase willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 9 Price $1.3 B Total Purchase Price ▪ $1,317.5 million of total cash consideration ▪ Approximately $17 million of potential earnout payable by 202
Slide 11: Q2 2019 Management Guidance Update
7 % to 8 % constant currency 4 % to 5 % organic revenue growth FY2019 Revenue Growth around 20 % Adj. operating margin FY2019 Adjusted Operating Margin $ 10.75 to $ 11.10 Adj. diluted EPS excluding $20 million to $25 million of transaction and integration cost FY2019 Adjusted Diluted EPS around 22 %
Slide 12: Appendix: Reconciliation of Non-GAAP Measures
Appendix: Reconciliation of Non - GAAP Measures willisto w e r s wat s o n .c o m willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only. 11
Slide 13: Appendix 1: Constant currency and organic revenue change
Appendix 1: Constant currency and organic revenue change willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 12 Components of Revenue Change (i) Three Months Ended June 30, As Reported Currency Constant Currency Acquisitions/ Organic 2019 2018 % Change Impact Change Divestitures
Slide 14: Appendix 2: Adjusted operating income, adjusted EBITDA, free cash flow
Appendix 2: Adjusted operating income and margin, adjusted EBITDA and margin, free cash flow Cash flows from operating activities $ 303 $ 395 L e ss : A dd i t i on s t o f i x e d a ss e t s a n d s o f t w a r e f o r i nt e r n a l u s e ( 120 ) ( 141 ) Free Cash Flow $ 183 $ 254 Six Months Ended
Slide 15: Appendix 3: Adjusted net income, adjusted diluted EPS, adjusted income tax rate
Appendix 3: Adjusted net income, adjusted diluted earnings per share, adjusted income before taxes, adjusted income tax rate Net Income attributable to Willis Towers Watson $ 425 $ 273 Adjusted for certain items: Amortization 250 281 Transaction and integration expenses 6 98 Pension settlement and c
Slide 16: About Willis Towers Watson
willistowerswatson.com About Willis Towers Watson Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has over 43,000 employees serving mo