Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Towers Watson — Q4 2015 Earnings Presentation
21 slides from Willis Towers Watson Public's earnings presentation, Feb 9, 2016
Slide 1: Supplemental Earnings Call Slides February 10, 2016
Willis Towers Watson Supplemental Earnings Call Slides February 10, 2016 ze een Wen rte WillisTowers Watson [al"I"Iall
Slide 2: Forward Looking Statements
Willis Towers Watson Forward Looking Statements “This document contains “forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as ‘may’, ‘wil’, ‘wou
Slide 3: Willis Group Holdings Fourth Quarter 2015 Results
Willis Group Holdings FOURTH QUARTER 2015 RESULTS Willis WillisTowersWatson La"! 3
Slide 4: Non-GAAP measures
Willis Non-GAAP measures This presentation contains references to non-GAAP financial measures as defined in SEC rules. We present such non- GAAP supplemental financial | as we believe such is of interestto the because it provides. methods of evaluating certain aspects of Willis Group's operating per
Slide 5: 4Q 2015 EPS Walk
Willis 4Q 2015 EPS Walk Solid quarter as growth in operating income was offset by higher interest expense and amortization from acquisitions sting items: Adjusting items: nen psa perstns (9 05) $1.12 a ww $0.09) (SeH7] (B528) si.08 || =) Si08 4Q 2014 Adjusting Foreign | 4Q2014 H Total Total Other 4Q
Slide 6: Operational Improvement Program Update
Willis Operational Improvement Program Update Annualized savings target $325 mi "Y¥2015 savings $66 mi 2015 forecast; Spend $4 ion better than forecast Initial 2015 Forecast Cumulative Annualized 2014A 2015E 2016E 2017E 2014-2017E 2018+E $ millions ( my Spend $36 $130 — $240 —— $410 Savings $11 2$60
Slide 7: 4Q 2015 Organic Metrics
Willis 4Q 2015 Organic Metrics Continue provement in both organic spread and organic EBI Organic Spread Organic EBITDA $ milions a 300 $191 $179 200 2 = 100 2 70 2 % 0 a -100 -160 “160 -200 ‘Annual Organic Spread Target 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 4Q 2014 4Q 2015 4a14 4015 Organic Operating M
Slide 8: 2015 Willis Key Metrics / Goals
2015 Willis Key Metrics / Goals Mid-single digit organic foulbreiss shleed of organic C&F over organic Improving cash flows Capital Management revenue growth expense growth 2015 Pro: é 2016: 2016 2015 Y Invest in the business Organic Growth Vv organic spread: v Underlying EBITDA: for growth 43.3% +2
Slide 9: Towers Watson
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Slide 10: Towers Watson Non-GAAP Measures
Towers Watson Non-GAAP Measures In order to assist readers of our financial statements in understanding the core operating results that Towers Watson's management uses to evaluate the business ‘and for financial planning, Towers Watson presents the following non-GAAP measures: (1) Constant Currency
Slide 11: Net Income to Adjusted Net Income
Net Income (attributable to common stockholders) Amortization of intangible assets Transaction and Integration expenses including severance US Tax Cost of Foreign Repatriation Adjusted Net Income (attributable to common stockholders) Net Income (attributable to common stockholders) Amortization of i
Slide 12: Net Income to Adjusted EBITDA, Three Months
Net Income (attributable to common stockholders) Provision for Income Taxes Interest, net Depreciation and Amortization Other Non-Operating Income (a) EBITDA EBITDA Margin Transaction and Integration Expenses Adjusted EBITDA Adjusted EBITDA Margin Three Months Ended December 31, 2015 $11,211 55,653.
Slide 13: Net Income to Adjusted EBITDA, Six Months
Six Months Ended Six Months Ended December 31, 2015 December 31, 2014 Net Income (attributable to common stockholders) $ 134,593 $ 191,734 Provision for Income Taxes 116,211 99,434 Interest, net 3,039 2597 Depreciation and Amortization 97,944 88,976 Other Non-Operating Income (a) (54,135) (865) EBIT
Slide 14: Calendar Year 2016 Guidance
Willis Towers Watson Calendar Year 2016 Guidance WillisTowersWatson Ial"I"Ial
Slide 15: Non-GAAP Measures
Willis Towers Watson Non-GAAP Measures In order to assist readers of our financial statements in understanding the core operating results that Willis Towers Watson's management uses to evaluate the business and for financial planning, Wills Towers Watson presents the following non-GAAP measures: (1)
Slide 16: Guidance
Willis Towers Watson Guidance Calendar Year 2016 = Constant Currency Revenue growth in the low double digits « Organic Revenue growth in the mid-single digits » Adjusted diluted EPS expected to be within the range of $7.70 to $ 7.95 = Adjusted EBITDA margin expected to be around 23% » Adjusted Opera
Slide 17: Legacy Segment Guidance Calendar Year 2016
Willis Towers Watson Legacy Segment G Calendar Year 2016 Legacy Segment Constant Currency | Organic Revenue Net Operating egy) Revenue Growth _| Growth Income Margin’ ance TW Benefits 2% to 3% low-single digit mid-30% TW Exchange Solutions® low-to-mid-20% low-20% mid-teens wee ore Finances Wow mictc
Slide 18: Non-GAAP Reconciliations: CY16 Revenue Guidance
Willis Towers Watson Non-GAAP Reconciliations CY16 Revenue Guidance CY16 As Reported Revenue to Constant Currency and Organic expected growth rates As Reported Change low-double digits Currency Impact low-single-digit decline Constant Currency Change low-double digits Acquisitions/Divestitures mid-t
Slide 19: Non-GAAP Reconciliations: CY16 Adjusted EBITDA Margin Guidance
Willis Towers Watson Non-GAAP Reconciliations CY16 Adjusted EBITDA Margin Guidance CY16 EBITDA Margin to Adjusted EBITDA Margin EBITDA Margin as expected under GAAP. around 18% Adjusted for: Transaction and Integration Expenses ~2% Deferred Revenue (non-recurring)* ~1% Restructuring Costs ~2% Expect
Slide 20: Non-GAAP Reconciliations: CY16 Adjusted Operating Margin Guidance
Willis Towers Watson Non-GAAP Reconciliations CY16 Adjusted Operating Margin Guidance CY16 Operating Margin to Adjusted Operating Margin Operating Margin as expected around 6.5% Adjusted for: Amortization of Intangible Assets around 8% Transaction and Integration Expenses ~2% Deferred Revenue (non-r
Slide 21: Non-GAAP Reconciliations: CY16 Adjusted EPS Guidance
Willis Towers Watson Non-GAAP Reconciliations CY16 Adjusted EPS Guidance CY16 Adjusted EPS Guidance CY16 GAAP EPS as expected $2.34 - $2.44 Adjusted for tax effected: Amortization of Intangible Assets $3.40 - $3.45 Transaction and Integration Expenses $0.75 - $0.80 Deferred Revenue (non-recurring)*