Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Group Holdings — Q3 2014 Earnings Presentation
23 slides from Willis Towers Watson Public's earnings presentation, Dec 9, 2014
Slide 1: Fact Book Third Quarter 2014
Exhibit 99.1 * * * * * * Fact Book Third Quarter 2014 WILLIS GROUP HOLDINGS December 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 ~$50 billion client base in >150 in premium in 2013 countries Broad P&C Specialty More than 2,500 Segmented: Large Human Capital & Benefits carrier corporates, small Reinsurance relationships and middle market Capit
Slide 5: Global risk advisor and broker
Global risk advisor and broker With roots dating to 1828, Willis operates today on every continent, with approximately 18,000 employees in over 400 offices Across geographies, industries and specialties, Willis provides its local and multinational clients with resilience for a risky world Willis is
Slide 6: Strong growth in organic commissions and fees and operating cash flows
Strong growth in organic commissions and fees and operating cash flows Organic commission and fee growth % Cash flow from operations ($ millions) Mid-single digit organic growth 2013 corporate/non-operating uses of across all segments in 2013 cash: Willis North America 4.8% Dividends $193 million Wi
Slide 7: Segment Overviews
* * * * * * * * * * * * * SEGMENT OVERVIEWS
Slide 8: 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 9: Willis International overview
Willis International overview Segment 2013 commissions and fees – by region • Approximately 6,000 associates in over 40 countries • Offices designed to grow business locally around the world, making use of the skills, industry knowledge and expertise available within segment and elsewhere in the Gro
Slide 10: Willis Global overview
Willis Global overview Segment 2013 commissions and fees – by business • Reinsurance, Specialty Insurance and Capital Markets businesses • Approximately 4,000 associates • Clients around the globe Willis Re • One of the world’s largest reinsurance brokers with three divisions: North America, Interna
Slide 11: 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 12: 3Q14 Results
* * * * * * * * * * * * * * 3Q14 RESULTS
Slide 13: 3Q 2014 summary financial results
3Q 2014 summary financial results 3Q 2014 3Q 2013 Reported C&F growth 2.1% 5.6% Organic C&F growth 2.5% 5.7% Reported operating margin 4.2% 8.8% Underlying operating margin 6.3% 7.7% Reported diluted EPS $ (0.04) $ (0.15) Underlying diluted EPS $ 0.14 $ 0.19 Underlying EBITDA $ 87 $ 96 Organic C&F g
Slide 14: 3Q 2014 Commissions and fees growth
3Q 2014 Commissions and fees growth % Growth 3Q 2014 vs. 3Q 2013 Reported Organic • Growth led by International with solid Group results in North America and Reinsurance • Growth in geographic regions led by Midwest and Atlantic North • Human Capital up mid-single digits America • Construction down
Slide 15: Appendix
* * * * * * * * * * * * * APPENDIX
Slide 16: Important disclosures regarding non-GAAP measures
Important disclosures regarding non-GAAP measures Commissions and fees analysis Organic Foreign Acquisitions commissions currency and and fees 2014 2013 Change translation disposals growth ($ millions) % % % % Three months ended September 30, 2014 North America $328 $322 1.9 - (1.5) 3.4 Internationa
Slide 17: Important disclosures regarding non-GAAP measures (continued)
Important disclosures regarding non-GAAP measures (continued) Commissions and fees analysis Foreign Acquisitions Organic currency and commissions 2013 2012 Change translation disposals and fees growth ($ millions) % % % % 2013 Full year North America $1,349 $1,281 5.3 (0.1) 0.6 4.8 International 926
Slide 18: Operating income to underlying operating income
Important disclosures regarding non-GAAP measures (continued) Operating income to underlying operating income 2013 2014 (In millions) 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD Total revenue $1,051 $890 $795 $2,736 $1,097 $935 $812 $2,844 excluding: Foreign currency movements 3 5 (3) 5 - - - - Underlying revenue $1,
Slide 19: Net (loss) income to underlying net income
Important disclosures regarding non-GAAP measures (continued) Net (loss) income to underlying net income 2013 2014 (In millions, except per share data) 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD Net (loss) income $219 $105 ($27) $297 $246 $47 ($7) $286 Excluding the following, net of tax: Operational improvement pro
Slide 20: Reported total expenses to underlying total expenses
Important disclosures regarding non-GAAP measures (continued) Reported total expenses to underlying total expenses 2013 2014 (In millions) 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD Reported total expenses $770 $723 $725 $2,218 $771 $787 $778 $2,336 Excluding: Operational improvement program - - - - - (3) (17) (20)
Slide 21: Reported total expenses to underlying total expenses
Important disclosures regarding non-GAAP measures (continued) Reported total expenses to underlying total expenses 2013 2014 (In millions) 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD Reported total expenses $770 $723 $725 $2,218 $771 $787 $778 $2,336 Excluding: Operational improvement program - - - - - (3) (17) (20)
Slide 22: Reported net (loss) income to underlying EBITDA
Important disclosures regarding non-GAAP measures (continued) Reported net (loss) income to underlying EBITDA 2013 2014 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD Net (loss) income attributable to $219 $105 ($27) $297 $246 $47 ($7) $286 Willis Group Holdings Excluding: Net (loss) income attributable to 4 2 - 6 4 1 (
Slide 23: Willis Group Holdings Fact Book Third Quarter 2014
* * * * * * Fact Book Third Quarter 2014 WILLIS GROUP HOLDINGS December 2014
Willis Group Holdings — Q3 2014 Earnings Presentation on 6ix