Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Q2 2014 Earnings Presentation
18 slides from Willis Towers Watson Public's earnings presentation, Jul 30, 2014
Slide 1: Second Quarter 2014 Results
Exhibit 99.2 Exhibit Willis SECOND July, RESULTS 2014 Group 99.2 QUARTER Holdings 2014
Slide 2: Important Disclosures: Forward-Looking Statements
Important This hi All operations. including commissions are There statements. document, business insolvencies strategy from macroeconomic premiums efficient material hurricane; refinancing result costs downgrade decline or exercise impact reputational have processing required The Part available Alth
Slide 3: Important Disclosures: Non-GAAP Measures
Important This and accepted relevant SEC. Definitions those Organic commission We current Underlying translation, 2income believe they presentation Our used and and commissions date. provide accounting method disclosures by that organic from of prior operating net and Consistent other non-GAAP incom
Slide 4: Q2 Underlying EPS Walk
EPS2013 $0.59 Underlying Q2 Operational 3See important Walk—Q2 $0.17 Reported business Improvement $(0.21) disclosures 2013 EPS $(0.01) performance to Increased Q2regarding Program 2014 $(0.49) commissions s Q2 =$(0.12) non-GAAP $(0.04) 2014$(0.07) Reported and measures $(0.03) Fees EPS Increased on
Slide 5: Underlying EBITDA and Cash at end of 2Q 2014
$549 Cash $187m $152 at 2Q $362 2014 Underlying Strong Significant More 4See end 2014 important million m 1Q from challenging organic $191 $550 $359 2Qinvestments EBITDA 2013 mmdisclosures commissions operations: market maintained in for 1H14 conditions regarding growth and flatfees toover non-GAAP
Slide 6: Q2 2014 Commissions and Fees Growth
Q2 2014—Commissions 4.0% Growth North International Global Strong 5See important 4.8% America America—growth commission –well Growth 6.7% spread –disclosures Growth International 5.6% ledand across by5.1% infee Willis across and all regarding all growth Global 3.4% regions, Fees segments Insurance m
Slide 7: Q2 Operating Expense Walk
$Total $723 Depreciation Q2 Investments Annual 6See millions 2013 2014 important $16 Operating salary Reported total $739 in&operating reviews, disclosures headcount $34 Amortization Expense Foreign $10including $1 expenses Walk to regarding currency $784 grow Q2– Q2 $3 2014 mandatory up business $7
Slide 8: Salaries and Benefits Q2 2014
$ millions Y-o-Y Salaries Full Underlying Continued Headcount Annual (1) 7SeeQ2 important Time FX 2013 salary and Employees movement(1) Q2 investments up S&B Benefits benefits has 2014 4% modestly reviews, disclosures been growth y-o-y, Q2 –rebased (FTE) reported underlying including for 2013 YTD -d
Slide 9: Balance Sheet Highlights
$Balance As Total Six Cash improved Debt Increase benefit partially ~2 repurchased 8No millions million of draw months reduced $708 flow down debt Jun pension Sheet in offset down cash 30, $from shares $796 cash from ended 2,317 for 2014 by Highlights by flow on contributions, $121 operations from s
Slide 10: Appendices
APPENDICES
Slide 11: YTD Commissions and Fees Growth
YTDimportant 4.3% 4.6% 2.7% 4.2% 6.6% 6.1% 4.9% 4.0% Growth Organic Reported Group North International Global Strong See 10 2014 America America-growth commission –well Growth Commissions spread –disclosures Growth ledand across byacross infee Reinsurance, and all regarding all growth regions, fees
Slide 12: YTD Operating Expense Walk
$ millions $1,470 $23 $46 $1,493 Expense Foreign Salaries Other Depreciation Operational YTD Total Investments Annual See 11 important Operating operating 2013 2014 Operating $61 salary Currency and Reduction Underlying Reported $23 Improvement in Benefits &reviews disclosures headcount expenses Amo
Slide 13: YTD Salaries and Benefits
$YTD Expense Y-o-Y Salaries Full Underlying Continued Headcount Annual See 12millions important Time 2014 FX salary and reduction Employees movement YTD investments Salaries up S&B benefits 4% modestly reviews, disclosures 2014 growth y-o-y, initiative and –-YTD (FTE) reported underlying 16 includin
Slide 14: Organic Commissions and Fees Growth Reconciliation
Important Commissions Three Foreign Organic currency 2014 ($ Six 30, North International Global Total 13 millions) 2014 months 2013 $930 $2,020 America months 368 810 Acquisitions and disclosures Change $885 350 777 ended %$1,931 222 501 and and ended % $340 $709 5.1 4.2 5.1 208 472 % fees fees June
Slide 15: Underlying Operating Income Reconciliation
Important 2013 (In Total Operational excluding: Expense Foreign Operating percentage Underlying income For currency 14 millions) prior 2014 revenue as currency reduction movements periods, disclosures income margin aof revenue operating improvement percentage 1Q total $1,051 2Q movements underlying
Slide 16: Underlying Net Income and EPS Reconciliation
Important 2013 (In Excluding Operational Venezuela Deferred Expense Foreign Diluted Net Underlying For and been 15 millions, prior loss income six disclosed 2014 month shares currency on reduction tax periods, disclosures currency the disposal net to $219 per improvement except valuation following,
Slide 17: EBITDA Reconciliation
Important $Operating ended 2014 %% Add Net noncontrolling net Income Interest Other Depreciation Amortization EBITDA Adjusting Operational Expense Foreign Underlying For currency 16millions of prior income back: 2013 expense tax June in tax expense currency reduction movements periods, $184 3disclos
Slide 18: IR Contacts
IR Contacts Peter Mark Tel: Email: 17 +1 Poillon Jones peter.poillon@willis.com mark.p.jones@willis.com 212 915-8796 915-8084
Willis Group Holdings — Q2 2014 Earnings Presentation on 6ix