Willis Group Holdings FOURTH QUARTER 2014 RESULTS February, 2015
4Q 2014 EPS growth Reported EPS grew 13.5%; Underlying EPS grew 17.9% Business performance = 0.10 - Commissions and fees = 0.27 Adjusting items: - Investment & other income = 0.05 (0.22) Operational Improvement Program = 0.06 0.32…
4Q 2014 Commissions and fees growth % Growth Q4 2014 versus 4Q 2013 Reported Underlying Organic Commentary 7.2% Reported impacted by FX movements and net M&A 3.1% 3.6% activity Group Underlying reflects impact of M&A activity…
4Q 2014 Total operating expenses Organic total expense growth of 2.7%; underlying expense growth of 7.1% heavily impacted by M&A millions 7.1% 819 803 16 4 (1) Acquisitions and Disposals Acquisitions and Disposals 40 774 50 (24)…
4Q 2014 Salaries and benefits Underlying salaries and benefits growth impacted by net acquisitions and disposals millions 9.1% Acquisitions and Disposals 600 600 Acquisitions and Disposals 25 569 50 (19) 550 5 5.5% 575 Organic…
4Q 2014 Salaries and benefits Organic S&B relatively flat from 1Q14 through 4Q14 millions 600 Underlying 550 570 575 569 3 2 3 25 Acquisitions and Disposals 5 Organic 545 567 573 566 575 4Q13 1Q14 2Q14 3Q14 4Q14 Organic…
Operational Improvement Program and metrics Cumulative Annualized millions 2014A 2015E 2016E 2017E 2014-2017E 2018+E Spend 36 130 240 410 Savings 11 60 135 235 420 300 Key metrics : 3/31/14 12/31/14 Ratio of full time…
4Q and FY 2014 underlying EBITDA Full year underlying EBITDA up modestly; 4Q14 up 11.6% millions 1.2% 819 829 11.6% Q4 173 193 Q3 96 87 Q2 191 187 Q1 359 362 2013 2014 Full year underlying EBITDA driven by: Revenue growth…
Corporate uses of cash and cash balance millions Corporate Uses of Cash Acquisitions 777 Dividends Significantly higher level of M&A in 2014 Capex 241 Share buyback Announced share buyback program for 2014 completed in October…
2013 Investor Conference Key Metrics / Goals 70 bps + spread of Mid-single digit organic Improving cash flows Capital Management organic C&F over organic revenue growth expense growth 2014 Progress 2014 2014 2014 Invest in the…
APPENDICES
4Q 2014 Other operating expenses Ongoing expense management reflected in 3.1% organic decline millions 2.5% Acquisitions and Disposals 166 Acquisitions and Disposals 165 165 (5) 161 4 1 10 (3.1)% 160 Organic decline 155 4Q…
4Q 2014 Non-operating segment items and Corporate & other 18 11 million increase due to higher WNA gains on Other disposals income/expense 7 No significant year over year change in foreign exchange gain/loss on revaluation 4Q 2013…
2014 EPS growth Reported EPS down 2.0%; Underlying EPS down 4.9% - Commissions and fees - Operational Improvement = 0.73 - Salaries & benefits = 0.59 Program = (0.15) - Investment & other - Other operating expenses = 0.15 - Deferred…
2014 Commissions and fees growth % Growth 2014 versus 2013 Reported Underlying Organic Commentary Mid-single digit organic growth despite challenging 4.6% market conditions in reinsurance and moderating rates 3.7% 3.8% Group across…
2014 Total operating expenses Total organic operating expense growth of 4.6%; underlying growth of 5.7% driven by M&A activity millions 5.7% Acquisitions and Disposals 3,155 3,119 36 1 34 53 Acquisitions and Disposals 2,992 133…
2014 Salaries and benefits Organic S&B of 5.2%; underlying growth of 6.1% millions 6.1% Acquisitions and Disposals 2,314 2,314 33 Acquisitions and Disposals 133 2,207 2,181 (29) 3 13 2,281 5.2% Organic growth 2,168 2013…
New Segment Structure New Segment structure from January 1, 2015 Report 1Q15 on new basis; expect to file restated financial information in March 2015 Willis Capital, Wholesale Willis North America Willis International Willis Great…
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…
Important disclosures regarding non-GAAP measures Operating income to underlying and organic operating income 2013 2014 (In millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Total revenue 1,051 890 795 919 3,655 1,097 935 812 958 3,802…
Important disclosures regarding non-GAAP measures Net income (loss) to underlying net income 2013 2014 (In millions, except per share data) 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q FY Net income (loss) 219 105 (27) 68 365 246 47 (7) 76 362…
Important disclosures regarding non-GAAP measures Net income (loss) to underlying and organic EBITDA 2013 2014 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Net income (loss) attributable to 219 105 (27) 68 365 246 47 (7) 76 362 Willis Group Holdings…
Important disclosures regarding non-GAAP measures Reported total expenses and salaries and benefits to underlying and organic total expenses and salaries and benefits 2013 2014 (In millions) 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Reported total…
IR Contacts Media Contact Peter Poillon Juliet Massey Tel: +1 212 915-8084 Tel: +44 7984 156 739 Email: peter.poillonwillis.com Email: juliet.masseywillis.com Mark Jones Tel: +1 212 915-8796 Email: mark.p.joneswillis.com 25
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