Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Q1 2013 Earnings Presentation
16 slides from Willis Towers Watson Public's earnings presentation, May 1, 2013
Slide 1: First Quarter 2013 Results
Exhibit 99.2 Willis Group Holdings FIRST QUARTER 2013 RESULTS May, 2013
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: Summary financial results
Summary financial results Q1 2013 Q1 2012 Organic 4.1% 2.1% Q1 2013 organic commission and fee commission and growth was well balanced across all fee growth three business segments: Willis North America: 4.3% Adjusted $333 m $330 m operating income Willis Global: 4.1% Willis International: 3.8% Adju
Slide 5: Total expenses
Total expenses Q1 Q1 Q1 2013 total adjusted expenses up $ millions 2013 2012 5.1%, or 5.6% on an underlying basis Total expenses – reported $ 764 $ 696 9.8% Primarily driven by 6.5% growth in adjusted S&B Other operating expenses grew 0.7% Expense reduction initiative (46) - on an adjusted basis Wri
Slide 6: Salaries and benefits throughout 2012 – assuming cash bonus accrued
Salaries and benefits – assuming cash bonus accrued throughout 2012 $ millions Q1 Q2 Q3 Q4 FY Salaries and benefits $ 506 500 502 515 $ 2,023 – adjusted Amortization of cash (59) (51) (46) (48) (204) retention awards 2012 cash bonus 63 63 63 63 252 accrual Difference 4 12 17 15 48 Salaries and benef
Slide 7: Salaries and benefits
Salaries and benefits Q1 Q1 Q1 2013 adjusted salaries and benefits $ millions 2013 2012 up 6.5%; underlying growth of 6.9%, driven by: Salaries and benefits – $ 568 $ 506 12.3% reported Increased headcount in 2012, primarily in latter part of the year Expense reduction initiative (29) - Change to bo
Slide 8: Salaries and benefits - assuming cash bonus accrued throughout 2012
Salaries and benefits - assuming cash bonus had been accrued throughout 2012 (apples to apples comparison) Q1 2012 Assuming cash bonuses had been with accrued throughout 2012 (consistent Q1 bonus with how we are paying in current $ millions 2013 accrual year): Salaries and benefits – $ 539 $ 510 5.7
Slide 9: Other operating expenses
Other operating expenses Q1 Q1 Q1 2013: Other operating expenses $ millions 2013 2012 increased 0.7% on an adjusted basis Other operating expenses – $ 156 $ 156 -% On an underlying basis (excluding FX reported movement), other operating expenses were up 1.4% Expense reduction initiative (12) - Write
Slide 10: Expense reduction initiative
Expense reduction initiative Q1 FY 2013 Q1 2013 Charge $ millions 2013 Estimate $46 million charge slightly above top Expense category end of previously estimated range Salaries and benefits 29 Salaries and benefits costs primarily severance related to elimination of Other operating expenses 12 207
Slide 11: Appendices
APPENDICES Willis
Slide 12: Commissions and fees analysis
Important disclosures regarding non-GAAP measures Commissions and fees analysis Foreign Organic currency Acquisitions commissions 2013 2012 Change translation and disposals and fees growth ($ millions) % % % % Three months ended March 31, 2013 Global $ 383 $ 370 3.5 (0.4) (0.2) 4.1 North America 363
Slide 13: Operating income to adjusted operating income
Important disclosures regarding non-GAAP measures Operating income to adjusted operating income 2012 2013 (In millions) 1Q 2Q 3Q 4Q FY 1Q Operating Income $317 $179 $70 ($775) ($209) $287 Excluding: Expense reduction initiative 46 Goodwill impairment charge - - - 492 492 - Write-off of unamortized c
Slide 14: Net income to adjusted net income
Important disclosures regarding non-GAAP measures Net income to adjusted net income 2012 2013 (In millions, except per share data) 1Q 2Q 3Q 4Q FY 1Q Net Income $225 $107 $26 ($804) ($446) $219 Excluding the following, net of tax: Expense reduction initiative - - - - - 38 Goodwill impairment charge -
Slide 15: IR Contacts
IR Contacts Peter Poillon Tel: +1 212 915-8084 Email: peter.poillon@willis.com Mark Jones Tel: +1 212 915-8796 Email: mark.p.jones@willis.com 14
Slide 16: First Quarter 2013 Results
Willis Group Holdings FIRST QUARTER 2013 RESULTS May, 2013
Willis Group Holdings — Q1 2013 Earnings Presentation on 6ix