Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Q1 2025 Earnings Presentation
36 slides from Willis Towers Watson Public's earnings presentation, Feb 4, 2025
Slide 1: Earnings Release Supplemental Materials: 2025 First Quarter Financial Results
WTW Earnings Release Supplemental Materials 2025 First Quarter Financial Results April 24, 2025 wtwco.com © 2025 WTW. All rights reserved.
Slide 2: WTW Forward-Looking Statements
WTW Forward-Looking Statements This document contains ‘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 created by those laws. These forward-lookin
Slide 3: WTW Non-GAAP Measures
WTW Non-GAAP Measures In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW’s management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic
Slide 4: Key Takeaways
Key Takeaways Generated Organic revenue growth1 of 5% and Adjusted Operating Margin1 of +100 bps in Q1 2025 Continued to make significant progress on strategic priorities with our specialization strategy, new talent and smart connections contributing to growth Focused on enhancing our efficiency to
Slide 5: Q1 2025 GAAP Financial Results
Q1 2025 GAAP Financial Results Key figures $USD million, except EPS and % Three months ended March 31, 2025 2024 Change Revenue $2,223 $2,341 (5)% Income from operations $432 $280 54% Operating margin % 19.4% 12.0% 740 bps Net income $239 $194 23% Diluted earnings per share $2.33 $1.83 27% Net cash
Slide 6: Q1 2025 Key Figures, Including Non-GAAP Financial Results
Q1 2025 Key Figures, Including Non-GAAP Financial Results Q1 2025 Results Total Revenue $2.2B +5% +5% Q1 2025 Q1 2025 Q1 2024 Organic1 Organic1 Adjusted Diluted EPS1 $3.13 +0%2 $3.13 Q1 2025 Q1 2025 Q1 2024 Adjusted Operating Margin1 21.6% +100 bps3 20.6% Q1 2025 Q1 2025 Q1 2024 Free Cash Flow1 -$86
Slide 7: Financial Review
Financial Review wtwco.com © 2025 WTW. All rights reserved. See “WTW Forward-Looking Statements“ above for information about forward-looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 7
Slide 8: Quarterly Segment Performance: Health, Wealth & Career
Quarterly Segment Performance: Health, Wealth & Career Q1 2025 Segment Highlights1 Revenue ($M) Segment Operating • For the quarter, HWC had organic revenue growth2 of 3%. Margin1 – Health had 6% organic revenue growth in all regions driven by solid $1,336 26.7% 25.1% client retention, new business
Slide 9: Quarterly Segment Performance: Risk & Broking
Quarterly Segment Performance: Risk & Broking Q1 2025 Segment Highlights1 Revenue ($M) Segment Operating • For the quarter, R&B had organic revenue growth2 of 7%. Margin1 $1,027 $978 22.0% 20.8% – CRB generated organic revenue growth of 8% driven by higher levels of new business activity and strong
Slide 10: Maintaining a Flexible Balance Sheet
Maintaining a Flexible Balance Sheet Reinforcing our business fundamentals; safeguarding WTW’s financial strengths Disciplined capital management strategy Mar 31, 2025 Dec 31, 2024 Provides WTW with the financial flexibility to ($ millions) reinvest in our businesses, capitalize on market growth opp
Slide 11: Executing Against a Balanced Capital Allocation Strategy
Executing Against a Balanced Capital Allocation Strategy Allocating capital to opportunities with the potential for highest return Capital Allocation Priorities CASH RETURNED TO SHAREHOLDERS • Reinvest in capabilities, businesses, and processes $12.1 B $3,899 • Invest in innovation, technology, and
Slide 12: Business Overview
Business Overview wtwco.com © 2025 WTW. All rights reserved. See “WTW Forward-Looking Statements“ above for information about forward-looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 12
Slide 13: WTW at a Glance
WTW at a Glance Delivering superior advice, broking and solutions in the areas of people, risk and capital Segments1 Rich Global reach, local heritage expertise Servicing clients 140+ countries & markets served by Risk & Broking 45% since 1828 49,000 colleagues 55% Health, Wealth & Career Global and
Slide 14: Segment Overview: Health, Wealth & Career
Segment Overview: Health, Wealth & Career1,2 Health, Wealth & Career: World-class portfolio of leading businesses providing advisory and consulting services within human capital, employee benefits and retirement verticals Health provides Wealth provides HWC Segment Total Revenue FY24 Revenue and Org
Slide 15: Segment Overview: Risk & Broking
Segment Overview: Risk & Broking1 Risk & Broking: Risk advisory and solutions business delivering innovative, integrated solutions tailored to client needs and underpinned by cutting edge data and analytics, technology and experienced risk thinkers R&B Segment Total Revenue FY24 Revenue and Organic
Slide 16: Focused on Creating Long-Term Value for Shareholders
Focused on Creating Long-Term Value for Shareholders Our successful rebuild and transformation has strengthened WTW’s position and results Accelerating performance through innovation and expansion in attractive 1 markets Enhancing efficiency to deliver continued adjusted operating margin 2 expansion
Slide 17: Strategy & Outlook
Strategy & Outlook wtwco.com © 2025 WTW. All rights reserved. See “WTW Forward-Looking Statements“ above for information about forward-looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 17
Slide 18: WTW Strategic & Financial Framework
WTW Strategic & Financial Framework Strategic Priorities Financial Outlook Mid-single digit organic growth1 plus Accelerate Performance Revenue Growth opportunistic inorganic growth We will build on recent momentum to drive performance in our businesses Adjusted Continued annual margin expansion, dr
Slide 19: Long-term Organic Revenue Growth Outlook
Long-term Organic Revenue Growth Outlook WTW Organic Growth Profile Sustainable Segment Growth Profiles1 long-term, Risk & Broking: MSD to HSD mid-single CRB: MSD-to-HSD MSD ICT: MSD-to-HSD $9.9B2 digit organic growth2 Health, Wealth & Career: MSD Health: HSD Wealth: LSD Career: MSD BD&O: MSD 2024 R
Slide 20: Adjusted Operating Margin Outlook
Adjusted Operating Margin Outlook Enhancing efficiency is a priority across the company Committed to WTW Adjusted Operating Margin % driving • Leveraging benefits from Transformation program to drive continued efficiencies and Annual continued operating leverage, coupled with WE DO expansion annual
Slide 21: Free Cash Flow Outlook
Free Cash Flow Outlook Delivering improvement through three pillars WTW Free Cash Flow Margin Continual Improvement +13.9%1 Operating Working Evolving margin capital business mix expansion management 2024 FCF Margin Outlook2 1 Signifies Non-GAAP financial measures. See Appendix I for Non-GAAP reconc
Slide 22: Capital Allocation Strategy - Driving Growth, Margin and Returns
Capital Allocation Strategy - Driving Growth, Margin and Returns Rebalancing apital allocatio C n Ongoing organic investments in talent, capital allocation technology, and new products to drive strategy to reflect sustainable growth and capture margin successful Quarterly Share expansion opportuniti
Slide 23: Select 2025 Financial Considerations
Select 2025 Financial Considerations Changes to Non-GAAP Financial Business Mix Free Cash Flow Measures1 TRANZACT business, which contributed $1.14 Expect cash outflows in 2025 from the payment to adjusted diluted earnings per share in 2024, All reported non-GAAP metrics will exclude non- of accrued
Slide 24: Appendix I: Reconciliation of Non-GAAP Measures
Appendix I: Reconciliation of Non-GAAP Measures wtwco.com © 2025 WTW. All rights reserved. See “WTW Forward-Looking Statements“ above for information about forward-looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 24
Slide 25: Constant Currency and Organic Revenue Change
Constant Currency and Organic Revenue Change As reported, USD millions except % Components of Revenue Change(i) Three Months Ended Less: Less: March 31, As Reported Currency Constant Currency Acquisitions/ Organic 2025 2024 % Change Impact Change Divestitures Change Health, Wealth & Career Revenue e
Slide 26: Adjusted Op Income and Margin, Adj. EBITDA and Margin
Adjusted Op Income and Margin, Adj. EBITDA and Margin As reported, USD millions except % Three Months Ended March 31, 2025 2024 Income from operations and Operating margin $ 432 19.4% $ 280 12.0% Adjusted for certain items: Amortization 48 60 Restructuring costs — 18 Transaction and transformation —
Slide 27: Adjusted Net Income and Adjusted Diluted EPS
Adjusted Net Income and Adjusted Diluted EPS As reported, USD millions except % Three Months Ended March 31, 2025 2024 Net income attributable to WTW $ 235 $ 190 Adjusted for certain items: Amortization 48 60 Restructuring costs — 18 Transaction and transformation — 125 Net periodic pension and post
Slide 28: Adjusted Income Before Taxes, Adjusted Income Tax Rate and Free Cash Flow
Adjusted Income Before Taxes, Adjusted Income Tax Rate and Free Cash Flow As reported, USD millions except % Three Months Ended March 31, 2025 2024 Income from operations before income taxes and interest in earnings of associates $ 303 $ 242 Adjusted for certain items: Amortization 48 60 Restructuri
Slide 29: Appendix II: Recast of Historical Non-GAAP Measures
Appendix II: Recast of Historical Non-GAAP Measures wtwco.com © 2025 WTW. All rights reserved. See “WTW Forward-Looking Statements“ above for information about forward-looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation.
Slide 30: Historical Recast - Adjusted EBITDA and Margin
Historical Recast - Adjusted EBITDA and Margin 2022 2023 2024 $USD Millions except % Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Net Income/(Loss) $ 125 $ 114 $ 192 $ 593 $ 1,024 $ 206 $ 96 $ 139 $ 623 $ 1,064 $ 194 $ 142 $ (1,672) $ 1,248 $ (88) (Income)/loss from discontinued
Slide 31: Historical Recast - Adjusted Net Income and Adjusted Diluted EPS
Historical Recast - Adjusted Net Income and Adjusted Diluted EPS 2022 2023 2024 $USD Millions Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year NET INCOME/(LOSS) ATTRIBUTABLE TO WTW $ 122 $ 109 $ 190 $ 588 $ 1,009 $ 203 $ 94 $ 136 $ 622 $ 1,055 $ 190 $ 141 $ (1,675) $ 1,246 $ (98) Ad
Slide 32: Historical Recast - Adjusted Income Tax Rate
Historical Recast - Adjusted Income Tax Rate 2022 2023 2024 $USD Millions except % Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Income/(Loss) from continuing operations before income $ 157 $ 179 $ 185 $ 737 $ 1,258 $ 256 $ 120 $ 164 $ 739 $ 1,279 $ 242 $ 168 $ (1,994) $ 1,688 $
Slide 33: Historical Recast - Free Cash Flow
Historical Recast – Free Cash Flow 2022 2023 2024 Three Months Six Months Nine Months Three Months Six Months Nine Months Three Months Six Months Nine Months Year Ended Year Ended Year Ended $USD Millions except % Ended March Ended June Ended Ended March Ended June Ended Ended March Ended June Ended
Slide 34: Appendix III: TRANZACT Standalone Historical Financial Results
Appendix III: TRANZACT Standalone Historical Financial Results wtwco.com © 2025 WTW. All rights reserved. See “WTW Forward-Looking Statements“ above for information about forward-looking statements and cautionary language, including how actual results may differ materially from those in the slide pr
Slide 35: TRANZACT Standalone Historical Financial Results
TRANZACT Standalone Historical Financial Results $USD million, except % Seasonality Full Year The seasonal nature of TRANZACT’s operations creates significant 2024 2023 2022 fluctuations in quarterly operating results. Historically, quarterly financial Revenue $785 $805 $742 results have been record
Slide 36: About WTW
About WTW At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience,
Willis Towers Watson Public Limited Company — Q1 2025 Earnings Presentation on 6ix