Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Q3 2015 Earnings Presentation
18 slides from Willis Towers Watson Public's earnings presentation, Oct 28, 2015
Slide 1: Third Quarter 2015 Results
Exhibit 99.2 Willis Group Holdings THIRD QUARTER 2015 RESULTS October 28, 2015 – Version 14
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: 3Q 2015 EPS growth
3Q 2015 EPS growth Underlying EPS growth YoY driven by a combination of overall top-line growth coupled with enhanced expense efficiency from the Operational Improvement Program as well as acquisitions Adjusting items: Operational Improvement Program = ($0.09) Gain on Disposal = $0.07 Devaluation of
Slide 5: 3Q 2015 Commissions and fees growth
3Q 2015 Commissions and fees growth Reported Underlying Organic Commentary 10.5% • Mid single-digit organic growth led by Willis International 4.1% 3.3% and CWR Group • Flat organic growth in Willis North America partially offset by modest decline in Willis GB • Solid growth seen in P&C and Financia
Slide 6: 3Q 2015 Total operating expenses
3Q 2015 Total operating expenses Achieved 230 bps of positive organic spread (20 bps of positive underlying spread) driven by ongoing cost management initiatives $ millions Oper. Improvement Program = $24m F/X = ($52)m M&A Related Expenses = $15m M&A = ($2)m Restructuring Charges = ($17)m 10.3% $819
Slide 7: 3Q 2015 Salaries and benefits
3Q 2015 Salaries and benefits Organic S&B was flat in 3Q15 driven by FTE management initiatives; Underlying S&B growth driven by higher acquisitions and disposals impact $ millions 7.0% Acquisitions & $569 Disposals $1 $570 $569 $570 ($37) $37 $532 $44 Acquisitions & $7 Disposals Flat organic growth
Slide 8: 3Q 2015 Organic metrics
3Q 2015 Organic metrics Continued improvement in both organic spread and organic EBITDA Organic Spread Organic EBITDA $ millions 230 23.3% 200 200 170 90 100 0 -100 -160 -160 -200 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 3Q 2014 3Q 2015 3Q14 3Q15 6.9% 9.3% Organic Operating Margin YTD3Q14 YTD3Q15 18.7% 20.5% N
Slide 9: Operational Improvement Program
Operational Improvement Program Annualized savings of at least $325 million remains on track; FY2015 savings of at least $80 million Cumulative Annualized 2Q15 Forecast 2014A 2015E 2016E 2017E 2014-2017E 2018+E $ millions Spend $36 $140 $140 $125 $440 Savings $11 $80 $150 $250 $490 $325 • Operationa
Slide 10: Appendices
APPENDICES
Slide 11: 3Q 2015 Other operating expenses
3Q 2015 Other operating expenses Modest ongoing organic expense growth driven strategically by Operational Improvement Program; Underlying growth driven by acquisitions and disposals $ millions 14.8% $177 $163 $14 $156 $21 $17 ($14) $142 $3 Acquisitions & Disposals Acquisitions & Disposals $146 $139
Slide 12: Segment Structure
Segment Structure Segment structure from January 1, 2015 Willis Capital, Wholesale Willis GB Willis North America Willis International and Reinsurance Comprises Willis’s Willis Re Focused on serving Focused on serving Great Britain-based corporate clients, corporate clients, Willis Capital Markets &
Slide 13: Reported commissions and fees growth to underlying and organic measures
Important disclosures regarding non-GAAP measures Reported commissions and fees growth to underlying and organic measures Underlying Organic Foreign commissions Acquisitions commissions currency and fees and and fees 2015 2014 Change (1) translation growth disposals growth ($ millions) % % % % % Thr
Slide 14: Operating income to underlying and organic operating income
Important disclosures regarding non-GAAP measures Operating income to underlying and organic operating income 2015 2014 (In millions) 3Q 3Q Total revenue $846 $812 excluding: Foreign currency movements - -48 Underlying revenue $846 $764 Net revenue from acquisitions and disposals (69) (14) Organic r
Slide 15: Net income to underlying net income
Important disclosures regarding non-GAAP measures Net income (loss) to underlying net income 2015 2014 (In millions, except per share data) 3Q 3Q Net income $117 ($7) Excluding the following, net of tax: Operational improvement program 17 14 M&A transaction related expenses 13 2 Loss (Gain) on dispo
Slide 16: Net income to underlying and organic EBITDA
Important disclosures regarding non-GAAP measures Net income to underlying and organic EBITDA 2015 2014 3Q 3Q Net income attributable to Willis $117 ($7) Group Holdings Excluding: Net income attributable to (1) (1) noncontrolling interests Interest in earnings (losses) of (3) (3) associates, net of
Slide 17: Reported total expenses to underlying and organic measures
Important disclosures regarding non-GAAP measures Reported total expenses, salaries and benefits and other operating expenses to underlying and organic measures 2015 2014 (In millions) 3Q 3Q Reported total expenses $819 $778 Excluding: Restructuring costs (24) (17) M&A transaction related expenses (
Slide 18: IR Contacts Media Contact
IR Contacts Media Contact Matt Rohrmann Juliet Massey Tel: +1 212 915-8180 Tel: +44 7984 156 739 Email: matt.rohrmann@willis.com Email: juliet.massey@willis.com 17
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