EX-99.2 3 exh_992.htm EXHIBIT 99.2

展覽99.2

 

WTW年度財報補充資料 2024年第三季度財務業績 2024年10月31日 wtwco.com © 2024 WTW。保留所有權利。

 

 

世界百貨公司網站 © 2024 年世界威特威爾士州。版權所有。WTW 未來展望聲明本文件包含 1933 年證券法第 27A 條及 1934 年證券交易法第 21E 條所指的「前瞻性聲明」,這些聲明旨在受這些法律建立的安全港所涵蓋。這些前瞻性聲明包括有關我們營運的可能或假設未來結果的信息。除了歷史事實聲明以外,涵蓋我們預期或預期的活動、事件或發展的所有報表,包括我們的前景、計劃和未來績效的參考,包括我們未來的財務和營運業績(包括我們的收入、成本或利潤)、短期和長期財務目標、計劃、目標、期望和意圖,包括有關有機收入增長、淨現金產生、調整後的收入、經調整後的營業利潤及調整後的每股盈利;未來購回股份;對我們的服務和競爭優勢的需求;策略目標;現有和不斷演變的業務策略,包括與收購和出售活動相關的策略;新計劃的好處;我們的業務和營運成長;我們能夠成功管理持續領導力、組織和技術變革的能力,包括改善系統和技術的投資流程;我們能夠實施和實現任何節省成本計劃的預期效益,包括我們的多年營運轉型計劃;健康大流行和其他世界健康危機等自然或人造災的潛在影響;未來的資本支出;持續的營運資金工作;稅法變更對我們的財務業績的影響;以及我們對未來的減值費用或應收帳款清除,都是前瞻性的報表。此外,當我們使用「可能」,「願」,「會」,「預測」,「相信」,「估計」,「期望」,「計劃」,「繼續」,「尋求」,「目標」,「目標」,「專注」,「可能」或類似的表達時,我們正在做出前瞻性的陳述。這些聲明基於我們管理層目前的信念和期望,並存在重大風險和不確定性。實際結果可能與前瞻性聲明中所列出的結果不同。所有前瞻性的披露本質上都是投機性的。有重要的風險、不確定性、事件和因素可能會導致我們的實際業績或表現與本文件中的未來展望聲明顯著不同,包括:我們能夠成功建立、執行和實現全球業務策略的能力;我們能夠充分發揮我們的增長策略預期效益,包括通過收購進行無機增長;我們進行銷售,包括待售 TranzAct 業務的能力(包括所有組成此類業務的法律實體)或收購,包括我們整合或管理已收購的業務或將要出售業務整合的能力,以及我們識別和成功執行戰略合作機會的能力;我們完成 TranzACT 待售的能力,以及與此相關的增加風險,包括我們在美國下獲得批准(或適用的等待期到期)的能力。 Gallagher & Co.;我們面臨的嚴重競爭以及市場份額和/或盈利損失的可能性;季節性和時間差異的影響,因出售和賬戶銷售而增加的影響;客戶資料保護不足、資訊系統的潛在漏洞或保障不足;我們的新和現有產品和服務和期望所產生的責任增加或新法律索賠的風險,意圖和與未完成訴訟相關的結果;現有訴訟或調查事宜產生重大負面結果的風險;我們經營的法規環境的變化,包括其他風險,尚待競爭法和監管調查的影響;我們能夠將直接消費者銷售和營銷解決方案與現有的產品和解決方案整合的能力;災難或業務連續性問題;我們能夠將直接消費者銷售和營銷解決方案整合的能力;災難或業務連續性問題;我們能夠將直接消費者銷售和營銷解決方案整合的能力成功加強我們的帳單、收款和其他營運資金工作,從而增加我們的自由現金流;我們能夠正確識別和管理利益衝突的能力;與第三方合作的聲譽損害;依賴第三方服務提供商和供應商的依賴;關於重要員工或大量員工,以及維持企業文化的能力;國際經營業務,包括外幣匯率的影響;遵守廣泛的政府規範規管;政府制裁或相關制裁法規的變更(例如對俄羅斯的制裁)和相關反制裁的風險;我們能夠有效地應用技術、數據和分析變更進行內部營運、維持行業標準和滿足客戶偏好;保險行業或美國醫療保健系統的變化和發展(包括與聯邦醫療保險有關的)、目前美國國會的任何立法行動,最近的聯邦醫療中心的最終規則 &合同年度的醫療保險服務及其相關的任何司法索賠、裁決和上訴,以及法律、監管、經濟、商業或營運條件的任何其他變化和發展,可能影響我們的醫療保險利益企業(如 TRANZACT);無法保護我們的知識產權,或可能侵犯他人的知識產權;我們的退休資產和責任波動,以及退休收入的相關變化,包括與或相關的源自動作利率環境、投資回報、通脹或其他假設計用於估算我們的利益義務及其對調整每股盈利的影響;我們的資本結構,包括債務金額、管理該等債務文件中的契約限制,以及維持每個人的財務和披露管制和程序;我們以優惠條件或全部獲得融資的能力;我們的信貸評級不利變化;最近或潛在變化對 U 的影響美國或外國法律,以及新增或修訂現有州、聯邦和/或外國法律法規、最近的司法決定以及案例、其他法規和任何政策變更和立法行動,包括可能徵收額外消費稅或影響我們有效稅率的美國聯邦所得稅後果對擁有至少 10% 股份的美國人;會計原則、估計或法例的變更;我們對非現金假設的認可稅前損失及相關減值與我們待售 TranzAct 及其他未來的減值費用或應收帳款扣除相關的費用;與環境、社會和管治實踐相關的風險;收入相對固定或高於預期費用的波動;投資水平(包括現金支出)在我們的多年營運轉型計劃下實現額外預期節省的風險;愛爾蘭法律與美國法律不同,可能提供較低的保障持有人我們的證券;以及我們的控股公司結構可能阻止我們能夠從我們的子公司獲得所需金額的股息或其他分派。上述因素清單並不詳盡,可能會不時出現新的因素,這些因素也會影響實際性能和結果。有關更多信息,請參閱我們的表格 10-k 年報中的第 I 部分項目 1A,以及我們之後向證券交易委員會提交的申報。副本可在網上瀏覽網址:www.sec.gov 或 www.wtwco.com。雖然我們認為我們前瞻性陳述的基礎假設是合理的,但這些假設中的任何一個,因此也是基於這些假設的前瞻性陳述也可能會被證明是不準確的。鑑於本文件中包含的前瞻性聲明中存在的重大不確定性,我們將這些信息納入並不代表我們的表示或保證實現我們的目標和計劃。我們的前瞻性聲明僅在發表的日期為止,除非證券法規要求我們這樣做,否則我們不會更新這些前瞻性聲明。就這些風險、不確定性和假設而言,本文件中討論的前瞻性事件可能不會發生,我們警告閣下不要過度依賴這些前瞻性陳述。2

 

 

WTW 非 GAAP 指標 wtwco.com © 2024 WTW。保留所有權利。有關前瞻性陳述和警示語言的信息,請參見上面的“WTW 前瞻性陳述”,其中包含實際結果可能與幻燈片演示中的結果有實質性差異的說明。爲了幫助我們合併基本報表的讀者理解 WTW 管理層用於評估業績和財務規劃的核心運營結果,我們呈現以下非 GAAP 指標:(1)固定貨幣變動,(2)有機變動,(3)調整後的營業收入/利潤,(4)調整後的 EBITDA/利潤,(5)調整後的淨收入,(6)調整後的稀釋每股收益,(7)調整後的稅前收入,(8)調整後的所得稅/稅率和(9)自由現金流。公司認爲這些指標相關,並提供分析師、投資者和其他在我們行業中感興趣的各方廣泛使用的有用信息,以提供評估和比較我們運營績效的基準,尤其是在自由現金流的情況下,評估我們的流動性結果。這些指標的調節在本次盈利發佈補充材料的附錄中包含。公司不將其前瞻性的非 GAAP 財務指標與相應的美國 GAAP 指標進行調節,原因在於可變性和準確預測及預測的困難,以及某些信息無法確認或不可獲取;並且並非所有的信息,例如量化調節這些前瞻性非 GAAP 財務指標與最直接可比的美國 GAAP 財務指標所需的外匯影響,均可在沒有不合理努力的情況下提供給公司。出於同樣的原因,公司無法闡明不可用信息的可能重要性。公司提供其認爲將獲得的非 GAAP 財務指標,然而無法準確預測調整計算的所有元件,美國 GAAP 指標可能與非 GAAP 指標存在實質性差異。

 

 

Organic revenue growth 1 of 6%, Adjusted Operating Margin 1 expansion of +190 bps and Adjusted Diluted EPS 1 growth of 31% in Q3 2024 Continued to make significant progress on strategic priorities with our specialization strategy, new talent and smart connections contributing to growth Realized $52 million of incremental annualized savings in Q3 2024, bringing the total to $446 million since the Transformation Program inception Continued to return capital to shareholders, with share repurchases of $205 million and dividends of $89 million in Q3 2024 Focused on delivering our 2024 financial targets Key Takeaways 1 Signifies Non - GAAP financial measures. See appendix for Non - GAAP reconciliations. wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 4

 

 

Q3 2024 GAAP Financial Results 1 Key figures wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 5 Nine months ended September 30, Three months ended September 30, $USD million, except EPS and % 2023 2024 2023 2024 $6,569 $6,895 5% $2,166 $2,289 6% Revenue % change $586 $(274) NM $159 $(766) NM (Loss)/Income from Operations % change 8.9% (4.0)% NM 7.3% (33.5)% NM Operating Margin % change, basis points $441 $(1,336) NM $139 ($1,672) NM Net (Loss)/Income % change $4.06 ($13.11) NM $1.29 ($16.44) NM Diluted EPS % change $823 $913 11% Net Cash From Operating Activities % change 1 Loss from Operations, Operating Margin, Net Loss and Diluted EPS for the third quarter of 2024 include pre - tax non - cash losses and impairment charges of over $1.0 billion each related to the pending sale of TRANZACT. NM Not meaningful.

 

 

Q3 2024 Key Figures, Including Non - GAAP Financial Results Total Revenue +6% Q3 2024 Organic 1 +9% Q3 2023 Organic 1 Adjusted Diluted EPS 1 Q3 2024 Results Adjusted Operating Margin 1 Transformation Program $446M of run rate savings since inception Free Cash Flow 1 $2.3B Q3 2024 $2.93 Q3 2024 $2.24 Q3 2023 $807M YTD Q3 2024 +31% Q3 2024 18.1% +190 bps Q3 2024 Q3 2024 wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 6 16.2% Q3 2023 +$100M YTD Q3 - 24 v. YTD Q3 - 23 $707M YTD Q3 2023 1 Signifies Non - GAAP financial measures. See appendix for Non - GAAP reconciliations.

 

 

Financial Review wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 7

 

 

Q3 2024 Segment Highlights 1 • For the quarter, HWC had organic revenue growth 2 of 4%. – Health had organic revenue growth driven by strong client retention, new local appointments and the continued expansion of our Global Benefits Management client portfolio in International and Europe, along with increased brokerage income in North America. – Wealth generated organic revenue growth from higher levels of Retirement work in Europe, an increase in our Investments business due to capital market improvements and growth from our LifeSight solution. – Career had organic revenue growth from increased compensation survey sales and advisory services in Work & Rewards and product revenue in Employee Experience. – BD&O had an organic revenue decline for the quarter primarily as a result of deliberately moderating growth in Individual Marketplace and a stronger comparable in Outsourcing. • Operating income was $329 million in the quarter, an increase of 8% from the prior year. Operating margin increased 90 bps from the prior year primarily from Transformation savings. • Please refer to Appendix II for TRANZACT’s standalone historical financial results. Quarterly Segment Performance: Health, Wealth & Career Revenue ($M) $1,328 $1,282 Q3 - 24 Q3 - 23 Segment Operating Margin 1 24.7% 23.8% Q3 - 24 Q3 - 23 Q3 - 23 Q3 - 24 Organic Revenue Growth 2 7% 6% Health 7% 3% Wealth 8% 7% Career 14% (1%) Benefits Delivery & Outsourcing (BD&O) 9% 4% Health, Wealth & Career 1 Includes Segment financial measures. See accompanying Earnings Release for Supplemental Segment Information. 2 Signifies Non - GAAP financial measure. See appendix for Non - GAAP reconciliations. wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 8

 

 

Q3 2024 Segment Highlights 1 • For the quarter, R&B had organic revenue growth 2 of 10%. – CRB generated organic revenue growth of 10% driven by higher levels of new business activity and strong client retention. – ICT organic revenue growth of 7% for the quarter primarily due to strong software sales in Technology, partially offset by tempered demand for discretionary services in Consulting. • Operating income of $170 million in the quarter increased by 27%. • Operating margin improved by 240 bps primarily due to operating leverage driven by organic revenue growth and disciplined expense management, as well as Transformation savings. Quarterly Segment Performance: Risk & Broking Revenue ($M) $940 $855 Q3 - 24 Q3 - 23 Segment Operating Margin 1 18.1% 15.7% Q3 - 24 Q3 - 23 Q3 - 23 Q3 - 24 Organic Revenue Growth 2 10% 10% Corporate Risk & Broking (CRB) 9% 7% Insurance Consulting & Technology (ICT) 10% 10% Risk & Broking 1 Includes Segment financial measures. See accompanying Earnings Release for Supplemental Segment Information. 2 Signifies Non - GAAP financial measure. See appendix for Non - GAAP reconciliations. wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 9

 

 

Transformation Program: Savings wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 10 Projected Cumulative From Inception Q3 - 24 YTD ($ millions) $94 $22 Real Estate Rationalization $98 $56 Technology Modernization $254 $31 Process Optimization ~$450 $446 $109 Total Savings Projected to generate ~$450 million of annualized savings through 2024 Delivering on our financial commitments • Delivering ~ $450 million of run - rate savings to contribute ~450 bps of margin improvement , while investing for growth • Realized $52 million of incremental annualized savings during the quarter and $446 million of annualized savings since program inception • Cumulative run - rate savings of $446 million are primarily attributable to Process Optimization as we focus on building an infrastructure from which to drive further efficiencies

 

 

Transformation Program: Costs to Achieve wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 11 Projected Cumulative From Inception Q3 - 24 YTD ($ millions) $204 $45 Real Estate Rationalization $305 $113 Technology Modernization $468 $143 Process Optimization ~$1,045 $977 $301 Total Restructuring / Transformation Costs ~$130 $125 $35 Total Capital Expenditures ~$1,175 ~90%/10% 2.4x $1,102 ~85%/15% $336 ~95%/5% Total Costs Incurred % Cash / % Non - Cash Cash Costs to Achieve / Savings • Incurred $75 million of restructuring / transformation related charges during the quarter • Incurred $12 million of capital expenditures during the quarter • The cumulative total investment (OpEx + CapEx) is $1,102 million representing ~94% of expected total one - time program costs

 

 

Maintaining a Flexible Balance Sheet wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 12 1 Total Debt equals sum of current debt and long - term debt as shown on the Consolidated Balance Sheets. 2 Signifies Non - GAAP financial measure. See appendix for Non - GAAP reconciliations. 3 Pro - forma leverage ratio excluding TRANZACT for the third quarter of 2024 was 2.2x. Dec 31, 2023 Sept 30, 2024 ($ millions) 1,424 1,372 Cash and Cash Equivalents 5,217 5,308 Total Debt 1 9,593 7,570 Total Equity 2.1x 2.0x 3 Debt to Adj. EBITDA 2 Trailing 12 - month Reinforcing our business fundamentals; safeguarding WTW’s financial strengths Disciplined capital management strategy Provides WTW with the financial flexibility to reinvest in our businesses, capitalize on market growth opportunities and support significant value creation for shareholders • Our capital structure provides a solid foundation of business strength and reinforces our ability to capture long - term growth • History of effectively managing our leverage with a commitment to maintaining our investment grade credit rating • Committed to a disciplined approach to managing outstanding debt and our leverage profile

 

 

Executing Against a Balanced Capital Allocation Strategy CASH RETURNED TO SHAREHOLDERS $ 11.3 B FY2016 to Q3 2024 YTD MEANINGFUL DIVIDEND GROWTH + 8 % Cash dividend growth 8 years CAGR $709 $602 $1,627 $3,530 $1,000 $1,352 $771 $506 $277 2017 $199 2016 $374 2021 $369 2022 $3,899 $595 $396 $986 $908 $479 $150 $346 $306 $329 $346 2018 2019 2020 $2,001 Share repurchases Dividends $352 2023 $265 Q3 - 2024 YTD 2016 2017 2018 2019 2020 2021 2022 2023 2024 $0.48 $0.53 $0.6 $0.65 $0.71 $0.80 $0.82 $0.84 $0.88 +8% Quarterly cash wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 13 dividend per share Capital Allocation Priorities • Reinvest in capabilities, businesses, and processes • Invest in innovation, technology, and new business • Return excess cash to shareholders through share repurchases and dividends to create long - term shareholder value • Strengthen balance sheet and liquidity • Sustain dividends and payout ratio • Business portfolio management • Pursue opportunistic M&A to strengthen capabilities Q3 2024 Highlights • Repurchased $205 million of shares during the quarter • Paid quarterly cash dividends of $89 million, $0.88 per common share Allocating capital to opportunities with the potential for highest return

 

 

Business Overview wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 14

 

 

Delivering superior advice, broking and solutions in the areas of people, risk and capital We Have a Portfolio of Leading Businesses in Attractive Markets We have: A distinctive mix of complementary businesses • Accomplished and aspiring talent • Collaborative client - first culture • Sophisticated data and analytics • Powerful tools A strong balance sheet and significant financial flexibility ~37 M individuals use our platforms to access benefits and insurance wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 15

 

 

Segment Overview: Health, Wealth & Career 1 Revenue ($M) Segment Operating Income ($M) Segment Operating Margin % Health, Wealth & Career: World - class portfolio of leading businesses providing advisory and consulting services within human capital, employee benefits and retirement verticals Benefits Delivery & Outsourcing provides medical exchange and outsourcing services to active employees and retirees across the group and individual markets as well as pension outsourcing Health provides advice, broking, solutions and software for employee benefit plans, HR organizations and management teams of our clients Wealth provides advice and management for retirement and investment asset owners using a sophisticated framework for managing risk Career provides compensation advisory services, employee experience software and platforms, and other career - related consulting services to our clients FY 2023 Revenue and Organic Growth Health 24% Wealth 30% Career 12% BD&O 34% +6% Organic +6% Organic $4,586 $4,895 $5,268 $5,287 $5,582 $1,149 $1,236 $1,346 $1,382 $1,565 25.0% 25.2% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 1 Includes Segment financial measures. See accompanying Earnings Release for Supplemental Segment Information. Segment results prior to 2022 were recast to reflect the realignment effective January 1, 2022. wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 16 25.6% 26.1% 28.0% +6% Organic +5% Organic

 

 

Segment Overview: Risk & Broking 1 Risk & Broking: Risk advisory and solutions business delivering innovative, integrated solutions tailored to client needs and underpinned by cutting edge data and analytics, technology and experienced risk thinkers Insurance Consulting and Technology provides advice and technology solutions to the insurance industry to help clients measure and manage risk and capita and improve performance Corporate Risk & Broking provides a broad range of risk advice insurance brokerage and consulting services to clients worldwide ranging from small businesses to multinational corporations Revenue ($M) FY 2023 Revenue and Organic Growth +7% Organic ICT 11% CRB 89% +10% Organic $3,382 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 1 Includes Segment financial measures. See accompanying Earnings Release for Supplemental Segment Information. Segment results prior to 2022 were recast to reflect the realignment effective January 1, 2022. wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 17 $3,316 $3,564 $3,460 $3,735 $650 $714 $734 Segment Operating Income ($M) $835 $813 19.8% 21.6% Segment Operating Margin % 23.4% 21.2% 21.8%

 

 

Value Creation Framework wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 18 1. Seek profitable growth through innovation in attractive markets 2. Target superior shareholder returns through buybacks and prudent investments 3. Defensive business model with historically lower volatility than other financial services subsectors 4. Accelerate operational transformation, resulting in meaningful margin improvements 5. Experienced, diverse management and global leadership team focused on achieving targets

 

 

Strategy & Outlook wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 19

 

 

2024 Financial Targets 1 1 2024 Financial Targets reflect Company’s current and anticipated market conditions and the Company’s current beliefs and expectations as of October 31, 2024 and are subject to significant risks and uncertainties. Also includes Non - GAAP financial measures. We do not reconcile forward - looking Non - GAAP measures for reasons explained in the appendix. 2 Includes the impact of other items, including but not limited to share repurchases, interest expense and provision for income taxes. Share repurchases are subject to market conditions among other relevant factors. Capital allocation decisions will depend among other things on what we view as relative return opportunities at the time. $16.00 - $17.00 Adjusted Diluted EPS ~$1.65 - $2.65 2 $ 14.49 ~($0.14) Adjusted Operating Margin Revenue 22.0% 23.0% - 23.5% $9.5B $0.4B - $0.6B $9.9B+ Grow, Simplify, Transform: Focus on the execution on our strategy with a clear path to 2024 Financial Targets Revenue $9.9B+ Mid - single digit (MSD) organic revenue growth with no meaningful year - over - year impact expected from both book - of - business settlements and interest income Foreign exchange expected to be a minimal impact based on current spot rates Adjusted Operating Margin 23.0 - 23.5% Margin expansion driven by improved operational efficiency and expense discipline in both HWC and R&B, net of investments Transformation Savings to deliver ~$450M of cumulative run - rate savings by year - end Adjusted Diluted EPS $16.00 - $17.00 Increased adjusted operating income to contribute to strong EPS growth Expect approximately $88M in non - cash pension income , down from $109M in 2023 100 - 150 basis points improvement, net of investments wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 20

 

 

Free Cash Flow Margin Expectations 1 • Adjusted operating margin expansion • Improvement in TRANZACT Free Cash Flow profile driven by maturation of the business and product mix • Non - recurrence of prior year headwinds • Headwind from incremental cash investment in Transformation Program 2022 7.6% 16%+ 12.6% Free Cash Flow Margin 2023 Long Term • Remain focused on other levers to improve Free Cash Flow, including improved working capital 2024 and Beyond: • Expect incremental improvement in 2024 • Adjusted operating margin expansion • Improvement from sale of TRANZACT • Headwind from cash investment in 2024 in HWC & R&B for product development to support future growth • Cash investment in Transformation will subside after 2024 1 Reflects the Company’s current beliefs and expectations as of October 31, 2024 and are subject to significant risks and uncertainties. Also includes Non - GAAP financial measures. Please see our financial presentation for the year and quarter ended December 31, 2023 for a reconciliation of Non - GAAP measures presented here. We do not reconcile forward - looking Non - GAAP measures for reasons explained in the appendix. wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 21

 

 

Appendix I: Reconciliation of Non - GAAP Measures wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 22

 

 

Constant Currency and Organic Revenue Change QTD (i) Components of revenue change may not add due to rounding. (ii) Interest income did not contribute to organic change for the three months ended September 30, 2024. Health, Wealth & Career 4% 0% 3% 0% 4% $ 1,275 $ 1,320 Revenue excluding interest income 7 8 Interest income 4% 0% 3% 0% 4% 1,282 1,328 Total Risk & Broking 10% 0% 10% 0% 10% $ 830 $ 911 Revenue excluding interest income 25 29 Interest income 10% 0% 10% 0% 10% 855 940 Total 6% 0% 6% 0% 6% $ 2,137 $ 2,268 Segment Revenue 22 15 Reimbursable expenses and other 7 6 Interest income 0% 6% (ii) 6% 0% 6% $ 2,166 $ 2,289 Revenue Less: Currency Impact Less: Acquisitions/ Divestitures As reported, USD millions except % Components of Revenue Change (i) As Reported % Change Constant Currency Change Organic Change Three Months Ended September 30, 2024 2023 wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 23

 

 

Constant Currency and Organic Revenue Change YTD (i) Components of revenue change may not add due to rounding. (ii) Interest income did not contribute to organic change for the nine months ended September 30, 2024. Health, Wealth & Career 4% 0% 4% 0% 4% $ 3,766 $ 3,898 Revenue excluding interest income 18 26 Interest income 4% 0% 4% 0% 4% 3,784 3,924 Total Risk & Broking 8% 0% 8% 0% 8% $ 2,607 $ 2,811 Revenue excluding interest income 52 86 Interest income 9% 0% 9% 0% 9% 2,659 2,897 Total 6% 0% 6% 0% 6% $ 6,443 $ 6,821 Segment Revenue 90 56 Reimbursable expenses and other 36 18 Interest income 0% 5% (ii) 5% 0% 5% $ 6,569 $ 6,895 Revenue Less: Currency Impact Less: Acquisitions/ Divestitures As reported, USD millions except % Components of Revenue Change (i) As Reported % Change Constant Currency Change Organic Change Nine Months Ended September 30, 2024 2023 wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 24

 

 

Adjusted Op Income and Margin, Adj. EBITDA and Margin QTD As reported, USD millions except % wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 25 2023 2024 7.3% 159 $ (33.5)% (766) $ (Loss)/Income from operations and Operating margin Adjusted for certain items: — 1,042 Impairment 62 56 Amortization 17 8 Restructuring costs 113 74 Transaction and transformation 16.2% 351 $ 18.1% 414 $ Adjusted operating income and Adjusted operating income margin 2023 2024 6.4% $ 139 (73.0)% $ (1,672) Net (Loss)/Income 25 (322) Provision for income taxes 61 65 Interest expense — 1,042 Impairment 60 60 Depreciation 62 56 Amortization 17 8 Restructuring costs 113 74 Transaction and transformation (41) 1,190 Loss/(gain) on disposal of operations 20.1% $ 436 21.9% $ 501 Adjusted EBITDA and Adjusted EBITDA Margin Three Months Ended September 30,

 

 

Adjusted Op Income and Margin, Adj. EBITDA and Margin YTD As reported, USD millions except % Nine Months Ended September 30, (i) Represents a provision related to potential litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. Because of this, while we do not believe the potential litigation is material, we believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations. 2023 2024 8.9% $ 586 (4.0)% $ (274) (Loss)/Income from operations and Operating margin Adjusted for certain items: — 1,042 Impairment 203 176 Amortization 30 29 Restructuring costs 265 296 Transaction and transformation — 13 Provision for specified litigation matter (i) 16.5% $ 1,084 18.6% $ 1,282 Adjusted operating income and Adjusted operating income margin 2023 2024 6.7% $ 441 (19.4)% $ (1,336) Net (Loss)/Income 99 (248) Provision for income taxes 172 197 Interest expense — 1,042 Impairment 184 176 Depreciation 203 176 Amortization 30 29 Restructuring costs 265 296 Transaction and transformation — 13 Provision for specified litigation matter (i) (44) 1,190 Loss/(gain) on disposal of operations 20.6% $ 1,350 22.3% $ 1,535 Adjusted EBITDA and Adjusted EBITDA Margin Nine Months Ended September 30, wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 26

 

 

Adjusted Net Income and Adjusted Diluted EPS QTD As reported, USD millions except % wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 27 (i) The tax effect was calculated using an effective tax rate for each item. (ii) Per share values and totals may differ due to rounding. 2023 2024 $ 136 $ (1,675) Net (loss)/income attributable to WTW Adjusted for certain items: — 1,042 Impairment 62 56 Amortization 17 8 Restructuring costs 113 74 Transaction and transformation (41) 1,190 Loss/(gain) on disposal of operations (51) (396) Tax effect on certain items listed above (i) $ 236 $ 299 Adjusted Net Income 105 102 Weighted - average ordinary shares, diluted $ 1.29 $ (16.44) Diluted (Loss) Earnings Per Share Adjusted for certain items: (ii) — 10.23 Impairment 0.59 0.55 Amortization 0.16 0.08 Restructuring costs 1.07 0.73 Transaction and transformation (0.39) 11.68 Loss/(gain) on disposal of operations (0.48) (3.89) Tax effect on certain items listed above (i) $ 2.24 $ 2.93 Adjusted Diluted Earnings Per Share (ii) Three Months Ended September 30,

 

 

Adjusted Net Income and Adjusted Diluted EPS YTD wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 28 As reported, USD millions except % (i) Represents a provision related to potential litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. Because of this, while we do not believe the potential litigation is material, we believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations. (ii) The tax effect was calculated using an effective tax rate for each item. (iii) Per share values and totals may differ due to rounding. $ 433 $ (1,344) Net (loss)/income attributable to WTW Adjusted for certain items: — 1,042 Impairment 203 176 Amortization 30 29 Restructuring costs 265 296 Transaction and transformation — 13 Provision for specified litigation matter (i) (44) 1,190 Loss/(gain) on disposal of operations (128) (492) Tax effect on certain items listed above (ii) 2 (7) Tax effect of significant adjustments $ 761 $ 903 Adjusted Net Income 107 103 Weighted - average ordinary shares, diluted $ 4.06 $ (13.11) Diluted (Loss) Earnings Per Share Adjusted for certain items: (iii) — 10.17 Impairment 1.90 1.72 Amortization 0.28 0.28 Restructuring costs 2.48 2.89 Transaction and transformation — 0.13 Provision for specified litigation matter (i) (0.41) 11.61 Loss/(gain) on disposal of operations (1.20) (4.80) Tax effect on certain items listed above (ii) 0.02 (0.07) Tax effect of significant adjustments $ 7.13 $ 8.81 Adjusted Diluted Earnings Per Share (iii) Nine Months Ended September 30, 2024 2023

 

 

Adjusted Income Before Taxes & Adjusted Income Tax Rate QTD (i) The tax effect was calculated using an effective tax rate for each item. wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 29 As reported, USD millions except % Three Months Ended September 30, 2023 2024 $ 164 $ (1,994) (Loss)/income from continuing operations before income taxes Adjusted for certain items: — 1,042 Impairment 62 56 Amortization 17 8 Restructuring costs 113 74 Transaction and transformation (41) 1,190 Loss/(gain) on disposal of operations $ 315 $ 376 Adjusted income before taxes $ 25 $ (322) (Benefit from)/Provision for income taxes 51 396 Tax effect on certain items listed above (i) $ 76 $ 74 Adjusted income taxes 15.5% 16.1% U.S. GAAP tax rate 24.3% 19.7% Adjusted income tax rate

 

 

Adjusted Income Before Taxes & Adjusted Income Tax Rate YTD and Free Cash Flow As reported, USD millions except % (i) Represents a provision related to potential litigation arising out of a structured insurance program originally placed for a client over 15 years ago. The program is of a type and complexity that was highly bespoke to the client and for that reason is unlikely to be exactly replicated elsewhere. Because of this, while we do not believe the potential litigation is material, we believe excluding this matter from adjusted results makes results more comparable from period to period and more representative of our core business operations. 2024 2023 Nine Months Ended September 30, $ 540 $ (1,584) (Loss)/income from continuing operations before income taxes Adjusted for certain items: — 1,042 Impairment 203 176 Amortization 30 29 Restructuring costs 265 296 Transaction and transformation — 13 Provision for specified litigation matter (i) (44) 1,190 Loss/(gain) on disposal of operations $ 994 $ 1,162 Adjusted income before taxes $ 99 $ (248) (Benefit from)/Provision for income taxes 128 492 Tax effect on certain items listed above (ii) (2) 7 Tax effect of significant adjustments $ 225 $ 251 Adjusted income taxes 18.3% 15.6% U.S. GAAP tax rate 22.6% 21.6% Adjusted income tax rate Nine Months Ended September 30, 2023 2024 $ 823 $ 913 Cash flows from operating activities (116) (106) Less: Additions to fixed assets and software for internal use $ 707 $ 807 Free Cash Flow (ii) The tax effect was calculated using an effective tax rate for each item. wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 30

 

 

Appendix II: TRANZACT Standalone Historical Financial Results wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 31

 

 

TRANZACT Standalone Historical Financial Results 20% 21% 16% 20% 21% 17% 21% 43% 37% 71% Revenue Expenses 1% 13% Income Q4 Q3 Q2 Q1 Seasonality The seasonal nature of TRANZACT’S operations creates significant fluctuations in quarterly operating results. Historically, quarterly financial results have been recorded as follows: Revenue, Expenses and Income As a % of full year 2023 wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 32 Full Year Nine months ended September 30, $USD million, except % 2022 2023 2023 2024 $742 $805 $458 $463 Revenue $146 $149 $43 $45 Adjusted Operating Income 19.6% 18.5% 9.5% 9.7% Adjusted Operating Margin $156 $160 $52 $53 Adjusted EBITDA ~($100) ~($20) ~$20 ~$40 Free Cash Flow

 

 

About WTW At WTW (NASDAQ: WTW), we provide data - driven, insight - led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success — and provide perspective that moves you. Learn more at www.wtwco.com . wtwco.com © 2024 WTW. All rights reserved. See “WTW Forward - Looking Statements“ above for information about forward - looking statements and cautionary language, including how actual results may differ materially from those in the slide presentation. 33