Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Q3 2013 Earnings Presentation
18 slides from Willis Towers Watson Public's earnings presentation, Oct 30, 2013
Slide 1: Third Quarter 2013 Results
Willis Group Holdings THIRD QUARTER 2013 RESULTS October, 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 Adjustment Change to reflect Q3 2012 – Q3 2013 vs. Q3 Q3 accrual of “apples to Q3 2012 2013 2012 bonuses apples” “apples to throughout comparison apples” 2012 * Organic commission 5.7% 2.2% and fee growth Adjusted operating $ 76 m $ 82 m $ (17) m $ 65 m $ 11 m income Adjust
Slide 5: Total expenses
Total expenses Q3 Q3 $ millions 2013 2012 Total expenses – reported $ 720 $ 684 5.3% Q3 2013 total expenses up 7.6% on an underlying basis Fees related to the (1) - extinguishment of debt India JV settlement - (11) After adjusting Q3 2012 comparison to Loss on disposal of operations - (1) reflect th
Slide 6: Salaries and benefits – assuming cash bonus accrued throughout 2012
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 Q3 Q3 $ millions 2013 2012 Salaries and benefits – Q3 2013 underlying S&B growth of 8.4% $ 541 $ 502 7.8% reported Salaries and benefits – After adjusting Q3 2012 comparison to $ 541 $ 502 7.8% reflect the $17 million negative impact adjusted from the change in remuneration pol
Slide 8: Other operating expenses
Other operating expenses Q3 Q3 $ millions 2013 2012 Other operating expenses Q3 2013: Other operating expenses – reported $ 144 $ 146 (1.4)% increased 5.9% on an adjusted basis Fees related to the (1) - extinguishment of debt On an underlying basis, other operating expenses were up 6.7%, India JV se
Slide 9: Appendices
APPENDICES Willis
Slide 10: Summary financial results
Summary financial results Adjustment Change to reflect YTD 2012 – YTD 2013 vs. YTD YTD accrual of “apples to YTD 2012 2013 2012 bonuses apples” “apples to throughout comparison apples” 2012 * Organic commission 5.3% 1.8% and fee growth Adjusted operating $ 580 m $ 586 m $ (33) m $ 553 m $ 27 m incom
Slide 11: Total expenses - YTD
Total expenses - YTD YTD YTD $ millions 2013 2012 Total expenses – reported $ 2,203 $ 2,043 7.8% Fees related to the (1) - YTD 2013 total expenses up 6.8% extinguishment of debt on an underlying basis Expense reduction initiative (46) - India JV settlement - (11) After adjusting YTD 2012 comparison
Slide 12: Salaries and benefits - YTD
Salaries and benefits - YTD YTD YTD $ millions 2013 2012 Salaries and benefits – YTD 2013 underlying S&B growth of $1,638 $1,508 8.6% reported 7.2% Expense reduction initiative (29) - After adjusting YTD 2012 comparison to Salaries and benefits – reflect the $33 million negative impact $1,609 $1,508
Slide 13: Other operating expenses
Other operating expenses YTD YTD $ millions 2013 2012 Other operating expenses $ 455 $ 431 5.6% – reported YTD 2013: Other operating expenses increased 7.3% on an adjusted basis Fees related to the (1) - extinguishment of debt On an underlying basis, other operating Expense reduction initiative (12)
Slide 14: Commissions and fees analysis
Important disclosures regarding non-GAAP measures Commissions and fees analysis Organic Foreign Acquisitions commissions currency and and fees 2013 2012 Change translation disposals growth ($ millions) % % % % Three months ended September 30, 2013 North America $ 328 $ 315 4.1 (0.4) 0.6 3.9 Internat
Slide 15: Operating income to adjusted operating income
Important disclosures regarding non-GAAP measures Operating income (loss) to adjusted operating income 2012 2013 (In millions) 1Q 2Q 3Q YTD 4Q FY 1Q 2Q 3Q YTD Operating Income $317 $179 $70 $566 ($775) ($209) $287 $171 $75 $533 Excluding: Tender related fees - - - - - - - - 1 1 Expense reduction ini
Slide 16: Net income to adjusted net income
Important disclosures regarding non-GAAP measures Net income (loss) to adjusted net income 2012 2013 (In millions, except per share data) 1Q 2Q 3Q YTD 4Q FY 1Q 2Q 3Q YTD Net Income from continuing operations $225 $107 $26 $358 ($804) ($446) $219 $105 ($27) $297 Excluding the following, net of tax: D
Slide 17: 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 16
Slide 18: Third Quarter 2013 Results
Willis Group Holdings THIRD QUARTER 2013 RESULTS October, 2013
Willis Group Holdings — Q3 2013 Earnings Presentation on 6ix