Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Towers Watson — Q1 2022 Earnings Presentation
26 slides from Willis Towers Watson Public's earnings presentation, Apr 28, 2022
Slide 1: Earnings Release Supplemental Materials First Quarter Financial Results
WT Earning First Qua April 28, 202 W s Release Supplemental Materials rter Financial Results 2 wtwco.com © 2022 WTW. All rights reserved.
Slide 2: WTW Forward-Looking Statements
WTW Forward - Looking Statements wtwco.com © 2022 WTW. All rights reserved. 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 harb
Slide 3: WTW Non-GAAP Measures
WTW Non - GAAP Measures wtwco.com © 2022 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. In order to assist read
Slide 4: Strategy and Operating Performance
Strategy and Operating Performance wtwco.com © 2022 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 5: Key Takeaways
On track to achieve 2022 financial targets Aggressively returned capital, with $2.3B in Q1 - 22 share repurchases Organic growth of 2% in the quarter, driving 22% Adj. EPS growth Significant progress on strategic priorities, highlighted by hiring at fastest rate since 2019 Key Takeaways Transformati
Slide 6: Q1 2022 GAAP Financial Results Key figures
Q1 2022 GAAP Financial Results Key figures wtwco.com © 2022 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. $USD
Slide 7: Q1 2022 Key Figures, Including Non-GAAP Financial Results
Q1 2022 Key Figures, Including Non - GAAP Financial Results Solid Operating Performance Total Revenue +2% Q1 2022 Organic wtwco.com © 2022 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how
Slide 8: Execution on our strategy to generate outstanding value creation for all shareholders
Execution on our strategy to generate outstanding value creation for all shareholders • Grow: Invest to grow at or above market in chosen areas • Simplify: Increase agility; do the basics well • Transform: Enhance client and colleague experience through operational excellence FY 2024 Financial Targe
Slide 9: Recent Progress Against Strategic Priorities
Recent Progress Against Strategic Priorities Grow Simplify Transform • Q1 2022 hiring activity up 23% vs. Q4 2021, while voluntary terminations declined 19% wtwco.com © 2022 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and
Slide 10: We Have a Portfolio of Leading Businesses in Attractive Markets
Delivering superior advice, broking and solutions in the areas of people, risk and capital We Have a Portfolio of Leading Businesses in Attractive Markets We have: A distinctive mix of complementary businesses • Accomplished and aspiring talent • Collaborative client - first culture • Sophisticated
Slide 11: Business Overview: Health, Wealth & Career
$4,586 $4,895 $5,268 2019 2020 2021 $1,149 $1,236 $1,346 2019 2020 2021 25.0% 25.2% 25.6% 2019 2020 2021 Business Overview: Health, Wealth, & Career Revenue ($M) Operating Income ($M) Operating Margin % Health, Wealth & Career: World - class portfolio of leading businesses providing advisory and con
Slide 12: Business Overview: Risk & Broking
$3,282 $3,316 $3,564 2019 2020 2021 $650 $714 $835 2019 2020 2021 19.8% 21.6% 23.4% 2019 2020 2021 Business Overview: Risk & Broking Risk & Broking: Risk advisory and solutions business delivering innovative, integrated solutions tailored to client needs and underpinned by cutting edge data and anal
Slide 13: Value Creation Framework
Value Creation Framework wtwco.com © 2022 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. 1. Seek profitable gro
Slide 14: Financial Review
Financial Review wtwco.com © 2022 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 15: Segment Performance: Health, Wealth & Career
Segment Highlights • For the quarter, Health, Wealth & Career grew 2% organically and was led by Career and Health – Health grew primarily due to an increase in consulting assignments in North America – Career had strong demand for reward - based advisory services and compensation benchmarking produ
Slide 16: Segment Performance: Risk & Broking
Segment Highlights • Insurance Consulting & Technology grew organically from both increased advisory work and software sales • The growth was offset by the decline in Corporate Risk & Broking due to headwinds from book - of - business sales recorded in the prior year • Operating income of $192M in t
Slide 17: Transformation Program Off to a Strong Start
Transformation Program Off to a Strong Start On track to generate $300M+ of annualized savings through 2024 wtwco.com © 2022 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results
Slide 18: Maintaining a Flexible Balance Sheet
Maintaining a Flexible Balance Sheet wtwco.com © 2022 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. 1 Total De
Slide 19: Executing Against a Balanced Capital Allocation Strategy
Executing Against a Balanced Capital Allocation Strategy CASH RETURNED TO SHAREHOLDERS $ 7.7 B FY2016 to Q1 - 22 2,250 2017 $602 $908 $277 $709 $306 2018 2019 2020 $1,627 $374 2021 98 Q1 - 2022 $595 $396 $199 2016 $986 $479 $150 $329 $346 $346 $2,001 2,348 Share repurchases Dividends 2016 2021 2020
Slide 20: On Track to Achieve 2022 Financial Targets
On Track to Achieve 2022 Financial Targets 1 Expect to deliver adjusted operating margin expansion for full year 2022 FY2022 Adjusted Margin Improvement Expect approximately $0.15 - $0.20 headwind on Adj. EPS at today’s rates FY2022 Foreign Currency Impact on Adjusted EPS Expect ~$20 million year -
Slide 21: Appendix: Reconciliation of Non-GAAP Measures
Appendix: Reconciliation of Non - GAAP Measures wtwco.com © 2022 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 22: Appendix 1: Constant Currency and Organic Revenue Change
Appendix 1: Constant Currency and Organic Revenue Change As reported, USD millions except % Components of Revenue Change (i) Less: Less: Three Months Ended March 31, As Reported Currency Constant Currency Acquisitions/ Organic 2022 2021 % Change Impact Change Divestitures Change Health, Wealth & Car
Slide 23: Appendix 2: Adjusted Op Income and Margin, Adj. EBITDA and Margin
Appendix 2: Adjusted Op Income and Margin, Adj. EBITDA and Margin As reported, USD millions except % Three Months Ended March 31, 2022 2021 Income from operations $ 179 8.3 % $ 211 9.5 % Adjusted for certain items: Impairment 81 — Amortization 85 103 Restructuring costs 6 — Transaction and transform
Slide 24: Appendix 3: Adjusted Net Income and Adjusted Diluted EPS
Appendix 3: Adjusted Net Income and Adjusted Diluted EPS As reported, USD millions except % ) wtwco.com © 2022 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 ma
Slide 25: Appendix 4: Adjusted Income Before Taxes, Adjusted Income Tax Rate and Free Cash Flow
Appendix 4: Adjusted Income Before Taxes, Adjusted Income Tax Rate and Free Cash Flow As reported, USD millions except % Three Months Ended March 31, 2022 2021 Income from continuing operations before income taxes $ 157 $ 590 Adjusted for certain items: Impairment 81 — Amortization 85 103 Restructur
Slide 26: About WTW
About WTW wtwco.com © 2022 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. At WTW (NASDAQ: WTW), we provide data