Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Q2 2014 Earnings Presentation
21 slides from Willis Towers Watson Public's earnings presentation, Sep 8, 2014
Slide 1: Fact Book Second Quarter 2014
Exhibit 99.1 Fact Book Second Quarter 2014 WILLIS GROUP HOLDINGS September 2014
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: Global risk adviser and broker
Global risk adviser and broker Client Insurer Globally diverse Adviser Broker Placed ~$50 billion client base in >150 in premium in 2013 countries Broad P&C Specialty More than 2,500 Segmented: Large Human Capital & Benefits carrier corporates, small Reinsurance relationships and middle market Capit
Slide 5: Global risk advisor and broker
Global risk advisor and broker Global North America International 2013 revenue - $3.7 billion With roots dating to 1828, Willis operates today on every continent, with approximately 18,000 employees in over 400 offices Across geographies, industries and specialties, Willis provides its local and mul
Slide 6: Strong growth in organic revenues and operating cash flows
Strong growth in organic revenues and operating cash flows Organic commission and fee growth % Cash flow from operations ($ millions) Mid-single digit organic growth 2013 corporate/non-operating uses of across all segments in 2013 cash: Willis North America 4.9% Dividends $193 million Willis Interna
Slide 7: 2Q14 Results
2Q14 RESULTS Willis
Slide 8: Strong organic commission and fee growth
Strong organic commission and fee growth Cash flow from operations ($ millions) Growth well spread across all segments North America - growth across most 6.7% regions, led by Northeast and Atlantic; Construction and Human Capital practices 5.6% 5.1% 5.1% up mid- and low-single digits, respectively 4
Slide 9: 2Q 2014 summary financial results
2Q 2014 summary financial results 2Q 2014 2Q 2013 Reported C&F growth 5.1% 5.7% Organic C&F growth 4.5% 6.3% Reported operating margin 15.8% 18.8% Underlying operating margin 16.1% 17.4% Reported diluted EPS $0.26 $0.59 Underlying diluted EPS $0.49 $0.59 Underlying EBITDA $187 $191 Q2 2014 vs Q2 201
Slide 10: Segment Overviews
SEGMENT OVERVIEWS Willis
Slide 11: Willis North America overview
Willis North America overview Segment 2013 commissions and fees – by region • More than 5,000 associates delivering industry and product specific solutions to our clients • Over 100 locations, broad geographic reach with ability to connect with Willis network. Major practices • Human Capital ~25% of
Slide 12: Willis International overview
Willis International overview Segment 2013 commissions and fees – by region • Approximately 6,000 associates in over 40 countries Latin America 20% • Offices designed to grow business locally Australasia around the world, making use of the skills, 9% industry knowledge and expertise available South
Slide 13: Willis Global overview
Willis Global overview Segment 2013 commissions and fees – by business • Reinsurance, Specialty Insurance and Willis Insurance UK Capital Markets businesses 49% • Approximately 4,000 associates • Clients around the globe Facultative 4% Risk Willis Re 2% Reinsurance 40% Willis Capital Markets • One o
Slide 14: Willis Global overview (continued)
Willis Global overview (continued) Willis Insurance UK 2013 commissions and fees – by business • Combination of Global Specialty business and UK retail business, creating a seamless client proposition • Strong global positions in: • Transport – includes aerospace, inspace and marine • Natural resour
Slide 15: Appendix
APPENDIX Willis
Slide 16: Important disclosures regarding non-GAAP measures (continued)
Important disclosures regarding non-GAAP measures (continued) Commissions and fees analysis Organic Foreign Acquisitions commissions currency and and fees 2014 2013 Change translation disposals growth ($ millions) % % % % Three months ended June 30, 2014 North America $340 $327 4.0 - (0.8) 4.8 Inter
Slide 17: Important disclosures regarding non-GAAP measures (continued)
Important disclosures regarding non-GAAP measures (continued) Commissions and fees analysis Foreign Acquisitions Organic currency and commissions 2013 2012 Change translation disposals and fees growth ($ millions) % % % % 2013 Full year North America $1,349 $1,281 5.3 (0.1) 0.6 4.8 International 926
Slide 18: Important disclosures regarding non-GAAP measures (continued)
Important disclosures regarding non-GAAP measures (continued) Operating income to underlying operating income 2013 2014 (In millions) 1Q 2Q YTD 1Q 2Q YTD Total revenue $1,051 $890 $1,941 $1,097 $935 $2,032 excluding: Foreign currency movements 3 5 8 - - - Underlying revenue $1,054 $895 $1,949 $1,097
Slide 19: Important disclosures regarding non-GAAP measures (continued)
Important disclosures regarding non-GAAP measures (continued) Net income (loss) to underlying net income 2013 2014 (In millions, except per share data) 1Q 2Q YTD 1Q 2Q YTD Net income $219 $105 $324 $246 $47 $293 Excluding the following, net of tax: Operational improvement program - - - - 2 2 Venezue
Slide 20: Important disclosures regarding non-GAAP measures (continued)
Important disclosures regarding non-GAAP measures (continued) Net income to underlying EBITDA Three months Six months $ millions ended June 30, ended June 30, % % 2014 2013 Change 2014 2013 Change Net income $47 $105 (55.2) $293 $324 (9.6) Add back: Net income attributable to 1 2 5 6 noncontrolling
Slide 21: Willis Group Holdings Fact Book Second Quarter 2014
Fact Book Second Quarter 2014 WILLIS GROUP HOLDINGS September 2014
Willis Group Holdings — Q2 2014 Earnings Presentation on 6ix