Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Q2 2015 Earnings Presentation
19 slides from Willis Towers Watson Public's earnings presentation, Jul 29, 2015
Slide 1: Second Quarter 2015 Results
Exhibit 99.2 Willis Group Holdings SECOND QUARTER 2015 RESULTS July, 2015
Slide 2: Important disclosures regarding forward-looking statements
Important disclosures regarding forward-looking statements This presentation contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors cre
Slide 3: Important disclosures regarding non-GAAP measures
Important disclosures regarding non-GAAP measures This presentation contains references to "non-GAAP financial measures" as defined in Regulation G of SEC rules. We present these measures because we believe they are of interest to the investment community and they provide additional meaningful metho
Slide 4: 2Q 2015 EPS growth
2Q 2015 EPS growth Underlying EPS grew 21% driven by a combination of top-line growth coupled with expense management initiatives and lower taxes Adjusting items: Operational Improvement Program = ($0.15) Gain on Disposal = $0.02 Adjusting items: Devaluation of Venezuelan Bolivar = ($0.01) Operation
Slide 5: 2Q 2015 Commissions and fees growth
2Q 2015 Commissions and fees growth Reported Underlying Organic Commentary 5.3% • Positive organic growth driven by strong growth in Willis Group 1.6% International, modest growth in Willis North America; partially offset by CW&R & GB declines (1.3)% • Declines in Retail & P&C offset growth in Finan
Slide 6: 2Q 2015 Total operating expenses
2Q 2015 Total operating expenses Achieved 200 bps of positive organic spread (20 bps of positive underlying spread ) driven by ongoing cost management initiatives; Organic expenses reduced versus 2Q 2014 $ millions Oper. Improvement Program = $38m M&A Related Expenses = $14m F/X = ($56)m 5.1% Restru
Slide 7: 2Q 2015 Salaries and benefits
2Q 2015 Salaries and benefits Organic S&B nearly flat driven by FTE management initiatives and lower pension costs; Underlying S&B growth driven by acquisitions and disposals $ millions 5.1% Acquisitions & $575 Disposals $560 $1 $561 ($42) $27 $32 $533 Acquisitions & $7 Disposals Organic growth 0.4%
Slide 8: 2Q 2015 organic metrics
2Q 2015 organic metrics Good revenue growth and organic expense management driving improved organic metrics $ millions Organic Spread Organic EBITDA 200 8.0% 170 $186 200 $173 90 100 0 -100 -160 -160 -200 2Q14 3Q14 4Q14 1Q15 2Q15 2Q 2014 2Q 2015 2Q14 2Q15 Organic Operating Margin 16.2% 17.8% Note: S
Slide 9: Operational Improvement Program update
Operational Improvement Program update Annualized savings increased from $300 million to $325 million; FY2015 savings increased to $80 million from $60 million Cumulative Annualized Original Forecast 2014A 2015E 2016E 2017E 2014-2017E 2018+E $ millions Spend $36 $130 $240 $410 Savings $11 >$60 $135
Slide 10: Operational Improvement Program Update
Operational Improvement Program Update Annualized savings target driven by well defined initiatives in all major workstream segments; Improving progress shown by all three key accountability metrics Workforce Location Relocation of approximately 2,500 support roles to lower cost locations 161 Operat
Slide 11: Appendices
APPENDICES
Slide 12: 2Q 2015 Other operating expenses
2Q 2015 Other operating expenses Ongoing expense management reflected in 1.6% organic decline; Underlying growth driven by acquisitions and disposals $ millions 3.7% $179 $173 $13 $166 ($13) $6 $160 $9 Acquisitions & $1 Disposals Acquisitions & Disposals Organic decline (1.6)% $159 $157 2Q 2014 Fore
Slide 13: Segment Structure
Segment Structure Segment structure from January 1, 2015 Willis Capital, Wholesale Willis GB Willis North America Willis International and Reinsurance Comprises Willis’s Willis Re Focused on serving Focused on serving Great Britain-based Willis Capital Markets & corporate clients, corporate clients,
Slide 14: Important disclosures regarding non-GAAP measures
Important disclosures regarding non-GAAP measures Reported commissions and fees growth to underlying and organic measures Underlying Organic Foreign commissions Acquisitions commissions currency and fees and and fees 2015 2014 Change(1) translation growth disposals growth ($ millions) % % % % % Thre
Slide 15: Important disclosures regarding non-GAAP measures
Important disclosures regarding non-GAAP measures Operating income to underlying and organic operating income 2014 2015 (In millions) 2Q 2Q Total revenue $935 $922 excluding: Foreign currency movements (59) - Underlying revenue $876 $922 Net revenue from acquisitions and disposals (18) (51) Organic
Slide 16: Important disclosures regarding non-GAAP measures
Important disclosures regarding non-GAAP measures Net income (loss) to underlying net income 2014 2015 (In millions, except per share data) 2Q 2Q Net income $47 $70 Excluding the following, net of tax: Operational improvement program 2 27 M&A transaction related expenses - 11 Loss (Gain) on disposal
Slide 17: Important disclosures regarding non-GAAP measures
Important disclosures regarding non-GAAP measures Net income to underlying and organic EBITDA 2014 2015 2Q 2Q Net income attributable to Willis $47 $70 Group Holdings Excluding: Net income attributable to 1 2 noncontrolling interests Interest in earnings (losses) of 3 2 associates, net of tax Income
Slide 18: Important disclosures regarding non-GAAP measures
Important disclosures regarding non-GAAP measures Reported total expenses, salaries and benefits and other operating expenses to underlying and organic measures 2014 2015 (In millions) 2Q 2Q Reported total expenses $787 $817 Excluding: Restructuring costs (3) (38) M&A transaction related expenses -
Slide 19: IR Contacts Media Contact
IR Contacts Media Contact Peter Poillon Juliet Massey Tel: +1 212 915-8084 Tel: +44 7984 156 739 Email: peter.poillon@willis.com Email: juliet.massey@willis.com 18
Willis Group Holdings — Q2 2015 Earnings Presentation on 6ix