Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Q1 2015 Earnings Presentation
20 slides from Willis Towers Watson Public's earnings presentation, Apr 29, 2015
Slide 1: Willis Group Holdings First Quarter 2015 Results
Exhibit 99.2 Willis 2015 FIRST April, Group RESULTS Holdings QUARTER 2015
Slide 2: Important Disclosures: Forward-Looking Statements
Important This covered All outlook, strengths, ‘believe’, There ing: conditions financial savings demand rejection effectively industry; retain costs and potential acquisition manage long-term investments or ill The included the Although themselves by 1so.the reputational in us In results Company. s
Slide 3: Important Disclosures: Non-GAAP Financial Measures
Important This they accounting Consistent calculating Definitions We used and community future. underlying aUnderlying Organic 2directly more believe fee provide presentation bycomplete revenues comparable other commissions revenues, measures disclosures with EBITDA, these principles that of commiss
Slide 4: 1Q Good Business Performance and EPS Growth
$1.35 1Q Good Business Operational Program $1.21 Loss 1Q +4.1%2015 revenue $0.01 = EPS performance ($0.12) EPSImprovement $0.26 growth growth Gain $1.26 $0.01($0.15)($0.11) Reported Movements Prior 3See 2014 important Adjusting year Adjusting Underlying EPS oncombined =Disposal disclosures Currency
Slide 5: 1Q Reported and Organic Commissions and Fees Growth
5.8% 1Q Reported Group 3.4% (0.9)% (4.6)% 4See 2015 Reported Wholesale ••1.1% •Reinsurance America management Willis International 1.1% Biggest Solid Organic GB Commissions Underlying importantSolid segments •0.5% Biggest Capital, North 21.1% growth mid-single organic ••disclosures driver: growth Re
Slide 6: Total Operating Expenses Growth 1Q 2015
$Ongoing $771 5.6% $5 $763 ($48) $8 $723 Acquisition 1.7% $715 1Q Reported Movement Expense higher 5See millions Acquisitions $1 2015 2014 important $31 growth $34 salaries growth Total Foreign cost Currency $37 $794 Amortization &$726 management disclosures Dispositions operating and & from 1Q Disp
Slide 7: Salaries and Benefits Growth
$Underlying $570 ($37) Acquisitions $6 $533 growth 1Q $527 Reported Organic M&A Salary Increased See millions 2015 2014 important $567 $34 increases 3.3% growth Salaries Foreign Movement S&B incentives $23 6.4% $567 salaries &disclosures impacted Dispositions reflects: Acquisitions generally Currenc
Slide 8: 1Q 2015 Headcount Trends
1Q 2015 Trends +1.1% 16,000 Onshore 1Q14 Offshore Total 7See important Organic FTEs 4Q14 helping 15,900 Onshore 1,800 Center 18,100 up 1Q15 FTEs disclosures about 15,700 to 2,000 capabilities optimize / 18,400 offshore 17,800 500 2,300 driven regarding 18,600 cost 17,900 FTE andstructure by FTEs ana
Slide 9: 1Q Underlying EBITDA and Margin
+1.5% 1Q $Underlying $335 $360millions 2015 +5.8% underlying EBITDA spread,(150)(160) spread,(130)(120) Organic EBITDA expands on?ofC&F/Cost Spread ••bps 2013 Good $340 Solid1Q organic Organic important 2014 + 1Q C&F expense Underlying Operational Significant 8See 20 170 improvement driven contribut
Slide 10: Gras Savoye Profile and Transaction
370 €Gras 65 10%millions Savoye Revenue By Paris 29% 60% 30% 39% 32% 17.6% Demonstrated Total $0.06 Expect 9Transaction– likely geography RegionsUS purchase toimpact growth $0.08Profile Profile: EBITDA inGAAP revenue 2014 basis International improving By on dilutive price both reported 2016 product
Slide 11: Gras Savoye: Strategic Fit and Next Phase
44 Gras Doubles 131 345 84 42 131 Savoye: 44 Willis’s Correspondent Expands Enhanced Opportunity Solidifies Immediately Next 10 phase Excellent Willis’ Willis’ ability infor wholly-owned accretive aAffiliate 40-year growth presence position to serve onStrategic through Owned network relationship in
Slide 12: Appendices
APPENDICES
Slide 13: Segment Structure
Segment Comprises Willis Focused 12 GBon Capital, Re Capital North International Structure structure Willis’s serving America Markets Wholesale from Great corporate &January Advisory Britain-based and clients, Reinsurance 1, 2015 Wholesale delivering Specialty businesses full andrange Retail (e.g.,
Slide 14: Other Operating Expenses
$Ongoing Acquisitions $165 $160 $155 ($10) $1 Organicdecline 1Q $151 $154 Reported M&A See 13millions $9 2015 2014 important 2.9% $160 $5 activity Other Foreign expense Movement decline &disclosures Organic operating Dispositions (2.4)% in Currency management other Underlying decline expenses operat
Slide 15: Reported to Underlying Commissions and Fees
(1) Important Reported Underlying Foreign currency 2015 ($ Three Reinsurance Willis Total 14 millions) 2014 $1,081 months GB Capital, North International commissions Percentages and commissions disclosures $142 Change(1) Organic %America $1,090 fees ended Wholesale %$150 % and 287 %(0.9) March may A
Slide 16: Operating Income and Margin Reconciliation
Important 2014 (In Total Restructuring excluding: Foreign Net disposals Operating percentage Underlying income Organic as For 15 amillions) prior revenue operating percentage 2015 revenue as currency revenue operating periods, (6) disclosures income margin aof revenue operating percentage from 1Q (2
Slide 17: Underlying Net Income and EPS Reconciliation
Important 2014 (In Excluding Operational Foreign Diluted Net Underlying For 16 millions, prior (gain) income 2015 shares currency periods, disclosures loss the net (loss) $246 per improvement except following, outstanding on income diluted movements $210 underlying to disposal per underlying regardi
Slide 18: EBITDA Reconciliation
Important 2014 1Q Group noncontrolling associates, Income Interest Other Depreciation Amortization EBITDA Restructuring Excluding: Foreign Underlying Net disposals Organic For 17 1Q prior income EBITDA 2015 expense Holdings in taxes expense currency EBITDA periods, $362 (7) disclosures earnings(loss
Slide 19: Operating Expenses Reconciliation
Important 2014 (In Restructuring Reported Foreign Excluding: Underlying Net Organic For 18 millions) prior expenses 2015currency total Salaries other periods, total salaries other disclosures total salaries other 1Q expenses from costs operating expenses, expenses operating 1Q expenses and movements
Slide 20: IR Contacts
IR Contacts Peter Media Juliet Tel: Email: 19 +1 +44 Poillon Massey Contact peter.poillon@willis.com juliet.massey@willis.com 212 7984915-8084 156 739
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