Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Bank of America Merrill Lynch Insurance Conference 2014
19 slides from Willis Towers Watson Public's conference presentation, Feb 12, 2014
Slide 1: Bank of America Merrill Lynch Insurance Conference
Exhibit 99.1 February 2014 I Bank of America Merrill Lynch Insurance Conference Willis Group Holdings
Slide 2: Disclaimer
Disclaimer Important disclosures regarding forward-looking statements These presentations contain 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
Slide 3: Disclaimer
Disclaimer any fluctuations in exchange and interest rates that could affect expenses and revenue; the potential costs and difficulties in complying with a wide variety of foreign laws and regulations and any related changes, given the global scope of our operations; rating agency actions that could
Slide 4: Global risk adviser and broker
Global International North America 29% 38% 33% Global risk adviser and broker With roots dating to 1828, today we are a truly global company, operating on every continent, with around18,000 Associates in over 400 offices Market-leading products and professional services in risk management and transf
Slide 5: Our strong fundamentals
Our strong fundamentals Highly diversified Geographically diversified Clients across all segments and industries 86% P&C, 14% EB and growing Attractive growth markets Long-term structural drivers – GDP, trade, inflation, demographics Growing insurance and broking penetration in developing markets Ex
Slide 6: Our growth opportunities
Our growth opportunities • Faster growth geographies, industries and sectors • Connectivity between businesses • New and existing insurance capital • Global360 • Global healthcare and demographic changes • The Willis Advantage Exchange • Growing Employee Benefits demand across the world • Discipline
Slide 7: Improving cash generation
Improving cash generation Invest in the business for growth Positive margin, targeting 70 bps + spread Mid-single digit organic revenue growth Flattening capital expenditures and pension funding Repurchase shares M&A Generate a steadily rising dividend Objective of mid-teens total shareholder return
Slide 8: Objectives - 2013 score sheet
Improving cash generation Positive margin, targeting 70 bps + spread Mid-single digit organic revenue growth Flattening capital expenditures and pension funding Combination of capital expenditures and pension funding was down mildly Objectives - 2013 score sheet Organic growth 4.9% • Willis North Am
Slide 9: Objectives - 2013 score sheet
Objectives - 2013 score sheet Invest in the business for growth M&A Generate a steadily rising dividend Repurchase shares Increased 7.1% to $1.20 per share in 2014 Buyback $200 million in shares in 2014 to offset increase in shares from employee option exercises Targeted acquisitions, e.g. Prime, Ch
Slide 10: Refining our segment approach: Large Corporates
Refining our segment approach: Large Corporates Opportunity: • Number of companies in U.S. with annual sales of >$1 billion grew 5% - • Commissions and fees paid by the same group grew 10% over that period Approach: • Focus on products and industries where we can win • Team approach and compensation
Slide 11: Refining our segment approach: Small and Middle Market clients
Refining our segment approach: Small and Middle Market clients Opportunity: • Small proportion of revenues today • Drive profitability and growth Approach: • More cost effective model to improve profitability • Manage as a separate practice in North America with national leadership • Use insurance f
Slide 12: Accelerating our Human Capital & Benefits strategy
Accelerating our Human Capital & Benefits strategy
Slide 13: Accelerating our Human Capital & Benefits strategy
Opportunity: • Over $500 million of Willis revenue globally in 2013 • Tremendous opportunity to take market share in disaggregated U.S. market • Willis employee benefits business in Europe is growing faster than P&C • Emerging markets (e.g., China and Brazil) provide substantial growth opportunities
Slide 14: The Willis Advantage in North America
In discussion with about 600 prospects, of which approximately 50% are new to Willis The Willis Advantage in North America
Slide 15: Creating ongoing structural reduction in our costs
Creating ongoing structural reduction in our costs • Simplify operations and IT • “Connecting Willis” leads to breakdown of silos • Prioritize investments towards client-facing systems • CRM • Client portals • Further use of our lower-cost locations • Ipswich • Nashville • Mumbai
Slide 16: Refining our approach to inorganic growth
BAML Insurance Conference, February 2014 Opportunity: • Approach: • Back in the market after post-2008/HRH hiatus • Meaningful uptick in number of transactions being evaluated • • • Emerging markets • Human Capital & Benefits • Reinsurance • Specialisms (product, industry) • Filling geographic gaps
Slide 17: Refining our approach to inorganic growth: Gras Savoye
• Cost restructuring complete in 2013 • Opportunity now to grow revenues and EBITDA • Post-acquisition, revenue and cost synergies • Passes many qualitative tests for which we evaluate targets: • Quality • Market leadership • Emerging markets exposure • Human Capital & Benefits • Geographic gaps (e.
Slide 18: Slide 18
Slide 19: Non-GAAP reconciliation: operating income (2013FY, 2012FY)
(In millions) 2013FY 2012FY Operating Income $685 ($209) - Excluding: - Fees related to the extinguishment of debt - - Expense reduction initiative - - Goodwill impairment charge - - Write-off of unamortized cash retention awards - - Accrual of 2012 cash bonus - - Insurance recovery - (10) - Write-o
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