Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Towers Watson — Q3 2019 Earnings Presentation
15 slides from Willis Towers Watson Public's earnings presentation, Oct 31, 2019
Slide 1: Willis Towers Watson 2019 Third Quarter Financial Results Supplemental Materials
willisto w e r s wat s o n .c o m Willis Towers Watson 2019 Third Quarter Financial Results Supplemental Materials October 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: Q3 2019 GAAP Financial Results, Key Figures
Q3 2019 GAAP Financial Results, Key Figures willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 3 $USD million, except EPS and % Three months ending September 30, Nine months ending September 30, 2018 2019 2018 2019 Revenue as reported % change $1,859 $1,989 +7% $6,141 $6,349 +3
Slide 5: Q3 2019 Key Figures, Includes Non-GAAP Financial Results
$ 2.0 B Q3 2019 Revenue Q3 2019 Key Figures, Includes Non - GAAP Financial Results Willis Towers Watson reports solid third quarter 2019 earnings Total Revenue + 6 % Q3 2019 Organic % Strong Growth Momentum Delivered 6% organic revenue growth for the second consecutive quarter driven by new business
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 commitment to a client winning experience continues to drive broad - based growth Q3 2018 Q3 2019 Human Capital & Benefits 2% 6% Corporate Risk &
Slide 7: Summary of Segment Financial Results
Summary of Segment Financial Results Q3 2019 Segment results compared to Q3 2018 willistowerswatson.com © 2019 Willis Towers Watson. All rights reserved. 6 As reported, $USD million, except % Q3 2018 1 Q3 2019 1,2 Revenue O p erating Margin % Revenue Operating Margin % Margin Year - over - year Huma
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 Sept 30, 2019 Sept 30, 2018 Cash and Cash Equivalents 931 1,033 867 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 $ 2.9 B FY2016 to Q3 FY2019 $396 $306 $199 $245 $986 $602 $709 $277 2016 2017 2018 2019 YTD In progress $392 $147 $595 $908 MEANINGFUL DIVIDEND GROWTH + 11 % Cash dividend growth 3 years CAGR 2016 $0 . 6
Slide 10: Q3 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 transaction and integration cost FY2019 Adjusted Diluted EPS around 22 % Adj. income tax rate Excludin
Slide 11: 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. 10
Slide 12: Appendix 1: Constant currency and organic revenue change
Appendix 1: Constant currency and organic revenue change $ $ Components of Revenue Change (i) Three Months Ended September 30, 2019 2018 As Reported % Change Currency Impact Constant Currency Change Acquisitions/ Divestitures Organic Change Human Capital & Benefits $ 807 778 4% (2)% 6% 0% 6% Corpora
Slide 13: Appendix 2: Adjusted operating income, adjusted EBITDA, free cash flow
Appendix 2: Adjusted operating income and margin, adjusted EBITDA and margin, free cash flow Nine Months Ended September 30, 201 9 2018 Cash flows from operating activities $ 620 $ 716 Less: Additions to fixed assets and software for internal use (175) I nco m e from operations $ 642 10.1% $ 339 5.5
Slide 14: Appendix 3: Adjusted net income, adjusted diluted EPS, adjusted tax rate
Appendix 3: Adjusted net income, adjusted diluted earnings per share, adjusted income before taxes, adjusted income tax rate Income from operations before income taxes $ 100 $ 36 Three Months Ended September 30, 2019 2018 U.S. GAAP tax rate 19.3% 11.3% Adjusted income tax rate 21.0% 18.9% Provision
Slide 15: 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 45,000 employees serving more th