WTW Earnings Release Supplemental Materials April 28, 2022 First Quarter Financial Results wtwco.com © 2022 WTW. All rights reserved. WTW Forward-Looking Statements This document contains '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 created by those laws. These forward-looking statements include information about possible or assumed future results of o ...

Willis Towers Watson Public Limited Company (NASDAQ:WTW) Q1 2022 Results Conference Call April 28, 2022 7:00 AM ET Company Participants Carl Hess - CEO Andrew Krasner - CFO Conference Call Participants Yaron Kinar - Jefferies David Motemaden - Evercore ISI Elyse Greenspan - Wells Fargo Josh Shanker - Bank of America Greg Peters - Raymond James Mark Marcon - Baird Paul Newsome - Piper Sandler Shlomo Rosenbaum - Stifel Brian Meredith - UBS Operator Good morning. Welcome to the WTW First Quarter 2022 Earnings ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ___________ Commission File Number: 001-16503 WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY (Exact name of registrant as specified in its charter) Ireland (J ...

Financial Performance - WTW reported a preliminary pre-tax gain of $2.3 billion from the sale of its treaty-reinsurance business, Willis Re, to Arthur J. Gallagher & Co. for $3.25 billion plus an earnout of up to $750 million [20]. - WTW reported a significant increase in revenue, reaching $5.1 billion for the quarter, representing a 10% year-over-year growth [11]. - WTW's operating income rose to $1.2 billion, reflecting a 12% increase compared to the previous year [11]. - The company anticipates a revenue growth of 8-10% for the upcoming fiscal year, driven by new product launches and market expansion strategies [11]. - WTW's cash flow from operations improved to $800 million, up from $700 million in the previous year, showcasing strong financial health [11]. Client Base and Market Presence - Approximately 92% of the FTSE 100, 91% of the Fortune 1000, and 90% of the Fortune Global 500 companies are clients of WTW, indicating a strong market presence [18]. - The company has a diverse client base, with no single client accounting for a significant concentration of revenue in recent years [18]. - The Corporate Risk and Broking segment places over $25 billion in premiums into insurance markets annually, providing a range of risk advice and insurance brokerage services [44]. Business Strategy and Operations - The company reorganized its business segments into Health, Wealth and Career (HWC) and Risk and Broking (RB) effective January 1, 2022, streamlining its service offerings [19]. - WTW aims to grow at or above market rates in priority areas, focusing on core opportunities with the highest growth and return, and plans to increase scale through inorganic expansion [36]. - WTW's strategic priorities include simplifying the business structure into two segments and enhancing operations to improve sales and retention outcomes [36]. - The company is focused on transforming operations to drive savings while enhancing client and colleague experiences through technology modernization and operational efficiency [36]. Workforce and Employment - Total employees as of December 31, 2021, were approximately 44,200, with the largest segments being Human Capital and Benefits (14,800) and Corporate Risk and Broking (11,800) [58]. - Voluntary turnover rate was 15.2% in 2021, up from 8.7% in 2020, attributed to uncertainty from a terminated merger with Aon and increased movement in global talent markets [59]. - Hiring increased by 73.5% in 2021 to 7,284, with approximately 2,800 open positions at year-end, reflecting strong demand for services [60]. - WTW's workforce increased by 5% in the last quarter, with a focus on hiring talent in key growth areas [11]. Inclusion and Diversity - The company emphasizes a commitment to Inclusion and Diversity, aiming to increase gender balance in leadership levels by 2030 [61]. - As of December 31, 2021, global female representation among all colleagues was 54.9%, while senior leadership had 30.8% female representation [62]. - In the U.S., ethnic and racial diversity among all colleagues was 25.8%, with 10.4% Black, 6.0% Hispanic, and 7.1% Asian representation [62]. - By April 1, 2022, the board of directors will have 50% female representation, including the Compensation Committee Chair, and will include members from the LGBT+ and Black and Asian communities [64]. Regulatory Compliance - The company’s activities are subject to various regulatory requirements, including those from the SEC, FCA, and GDPR, which govern its operations in multiple jurisdictions [71][76][83]. - The company is subject to various data privacy laws, including the Personal Information Protection Law in China, which impacts its operations [86]. - Regulatory compliance failures could result in disciplinary action, fines, and reputational damage, highlighting the importance of adherence to legal requirements [88]. Technology and Innovation - WTW is investing $200 million in technology and innovation to enhance service delivery and operational efficiency over the next three years [11]. - The company reported a 20% increase in digital service adoption among clients, highlighting a shift towards technology-driven solutions [11]. Impact of COVID-19 - The COVID-19 pandemic initially negatively impacted revenue growth, particularly in discretionary businesses, but demand increased starting in Q2 2021, leading to improved revenue growth [33]. - WTW's consulting services are expected to remain steady during economic uncertainty, with some businesses being counter-cyclical during significant economic changes [32].

Financial Data and Key Metrics Changes - For the full year 2021, the company reported 6% organic revenue growth and an adjusted operating margin of 19.9% [19][48] - Reported revenue for Q4 2021 was $2.7 billion, a 1% increase compared to Q4 2020, with a 4% organic growth [20] - Income from operations for Q4 was $690 million, representing 25.5% of revenue, up from 21.7% in the prior year [20][50] - Adjusted diluted earnings per share for Q4 were $5.67, reflecting a 9% increase from $5.19 in the prior year [21][51] Business Line Data and Key Metrics Changes - Human Capital & Benefits (HCB) segment revenue grew 3% organically in Q4 and for the full year [23][27] - Technology and Administration Solutions revenue increased by 11% in Q4, driven by project work in Great Britain and Western Europe [23] - Health and Benefits revenue rose 6% in Q4, reflecting strong demand in consulting [24] - Talent and Rewards revenue increased by 3% in Q4, following significant growth in previous quarters [25] - Retirement revenue decreased by 1% in Q4 due to reduced demand in North America [26] - Corporate Risk & Broking (CRB) revenue increased by 1% in Q4, with North America up 4% and International revenue up 10% [29][30] - Investment, Risk & Reinsurance (IRR) revenue was $199 million, a 32% increase on an organic basis [35] - Benefits Delivery & Administration (BDA) revenue increased by 5% in Q4, driven by Individual Marketplace and Benefits Outsourcing [40] Market Data and Key Metrics Changes - North America showed a 4% revenue increase in CRB, while Great Britain experienced a 5% decline due to lost business [31] - International revenue growth was supported by new business wins in Brazil and Central America [30] Company Strategy and Development Direction - The company aims to grow, simplify, and transform as an independent entity, emphasizing client focus and operational excellence [8][12] - Plans to streamline operations from four segments to two segments effective January 1, 2022, focusing on Risk and Broking and Health, Wealth, and Career [59] - The company is committed to returning capital to shareholders through share repurchases, with a target of approximately $4 billion in near-term repurchases [57][58] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing disruptions affecting client operations and emphasizes the importance of risk management in business decisions [13][14] - The company expects mid-single-digit organic revenue growth for 2022, with confidence in hiring strategies and market demand [68] - Management is optimistic about the potential for derisking opportunities in the Retirement segment due to favorable market conditions [78] Other Important Information - The company recorded a gain of $2.3 billion from the sale of Willis Re, impacting GAAP profitability measures [17] - Free cash flow for 2021 was $1.9 billion, an increase from $1.6 billion in the prior year [55] Q&A Session Summary Question: Organic revenue results and expectations for 2022 - Management expects mid-single-digit organic revenue growth for 2022, with confidence in the CRB segment gaining traction [64][66] Question: Hiring trends and colleague departures - The company has seen a decrease in colleague departures and an increase in hiring, particularly in the CRB segment [70][72] Question: Impact of hiring on revenue and margin expectations - Management acknowledges that revenue typically lags hiring but remains confident in achieving margin expansion despite investments [73][76] Question: HCB segment revenue growth and capacity constraints - Management remains positive about the Retirement segment and is addressing capacity constraints in the Talent and Rewards business [82] Question: Free cash flow and transformation spending - Management expects certain negative impacts on free cash flow to abate in 2022, with transformation spending being monitored [83][85] Question: Debt structure and share repurchases - Management is comfortable with the current debt structure and believes it allows for financial flexibility for share repurchases [101]

Revenue and Income - Revenue for Q3 2021 was $1,973 million, a 4% increase from $1,897 million in Q3 2020[158] - Income from continuing operations for Q3 2021 was $919 million, compared to $119 million in Q3 2020, representing a 671% increase[158] - The company reported a net income attributable to Willis Towers Watson of $903 million in Q3 2021, up from $121 million in Q3 2020, a 645% increase[158] - Consolidated revenue for the three months ended September 30, 2021, was $2.0 billion, a 4% increase from $1.9 billion in the same period of 2020, with organic revenue growth of 7%[159] - For the nine months ended September 30, 2021, revenue was $6.3 billion, up 6% from $5.9 billion in the prior year, with organic revenue growth of 6%[159] - Revenue for the nine months ended September 30, 2021, was $6.292 billion, reflecting a 6% increase compared to the same period in 2020[263] Costs and Expenses - The transaction and integration costs for Q3 2021 were $(952) million, compared to $42 million in Q3 2020, indicating a significant increase in costs associated with business combinations[158] - Total costs of providing services for Q3 2021 were $842 million, a decrease of 54% from $1.8 billion in Q3 2020, largely due to a $1 billion income receipt related to the termination of the proposed Aon transaction[201] - Interest expense for Q3 2021 was $50 million, down 18% from $61 million in Q3 2020, attributed to lower levels of indebtedness[209] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2021 were $1.9 billion, compared to $1.2 billion for the same period in 2020, reflecting improved net income and operational efficiency[232] - Cash flows from investing activities for the nine months ended September 30, 2021 were $577 million, primarily from the net proceeds of $696 million from the sale of the Miller business[234] - Cash flows used in financing activities for the nine months ended September 30, 2021 were $2.3 billion, including share repurchases of $1 billion and debt repayments of $970 million[236] - Free cash flow for the nine months ended September 30, 2021, was $1,768 million, compared to $1,023 million in 2020, indicating a 73% increase[284] Segment Performance - The Human Capital and Benefits (HCB) segment revenue for the three months ended September 30, 2021, was $852 million, a 7% increase from $796 million in the same period of 2020, with organic growth of 6%[174] - The Corporate Risk and Broking (CRB) segment revenue for the three months ended September 30, 2021, was $697 million, a 7% increase from $649 million in the same period of 2020, with organic growth of 6%[181] - BDA segment revenue for Q3 2021 was $242 million, an increase of 7% from $226 million in Q3 2020, primarily driven by Individual Marketplace growth[197] - For the nine months ended September 30, 2021, BDA segment revenue was $771 million, up 16% from $666 million in the same period of 2020, with strong performance in Medicare Advantage and Life sales[200] Tax and Income - Provision for income taxes for Q3 2021 was $267 million, an increase of $225 million from $42 million in Q3 2020, with an effective tax rate of 22.5%[212] - Adjusted income before taxes for the nine months ended September 30, 2021, was $996 million, up from $796 million in 2020, reflecting a 25% increase[280] - The U.S. GAAP tax rate for the three months ended September 30, 2021, was 22.5%, down from 26.6% in 2020[281] Shareholder Returns and Debt - The company restarted its share repurchase program in Q3 2021, repurchasing $1 billion of stock, with authorization to repurchase an additional $4.5 billion[223] - Total debt as of September 30, 2021 was $4.637 billion, down from $5.635 billion at December 31, 2020, due to significant debt repayments[238] - The capitalization ratio decreased to 28.9% as of September 30, 2021, from 34.2% at December 31, 2020, reflecting strong earnings and debt repayments[238] Market Conditions and Strategy - The company anticipates that the market for talent will remain highly competitive for the next several months due to global labor market shifts[154] - The company has established a hedging strategy to mitigate significant fluctuations in currency, particularly related to its operations in the U.K.[151] - The company has seen a modest improvement in pricing in the insurance market, indicating a potential shift towards a firmer market[144] - The company expects continued volatility in demand for discretionary services due to the ongoing impacts of the COVID-19 pandemic[169] Discontinued Operations - Loss from discontinued operations for Q3 2021 was $12 million, compared to income of $3 million in Q3 2020, reflecting a decrease of $15 million[213] - Revenue from discontinued operations for Q3 2021 was $111 million, slightly down from $112 million in Q3 2020, while year-to-date revenue increased to $668 million from $642 million[214] - The company has entered into an agreement to sell Willis Re, with the transaction expected to be completed by the end of Q1 2022[186] Financial Position - Cash and cash equivalents at September 30, 2021 totaled $2.2 billion, an increase from $2.0 billion at December 31, 2020, driven by strong operating results and the sale of the Miller business[228] - As of September 30, 2021, total current assets were $201 million, total non-current assets were $676 million, total current liabilities were $6.85 billion, and total non-current liabilities were $6.55 billion[258] - The company held $2.2 billion of fiduciary funds invested in interest-bearing accounts as of September 30, 2021[292] Adjusted Metrics - Adjusted operating income for the three months ended September 30, 2021, increased to $264 million from $231 million for the same period in 2020, and for the nine months ended September 30, 2021, it rose to $920 million from $742 million in 2020, primarily due to higher revenue[267] - Adjusted EBITDA for the three months ended September 30, 2021, was $415 million, compared to $375 million for the same period in 2020, and for the nine months ended September 30, 2021, it was $1.4 billion, up from $1.2 billion in 2020, driven by increased revenue[271] - Adjusted diluted earnings per share for the three months ended September 30, 2021, increased to $1.73 from $1.31 in 2020, and for the nine months ended September 30, 2021, it rose to $6.04 from $4.52 in 2020, primarily due to higher revenue[276]

Willis Towers Watson Public Limited Company (WLTW) Q3 2021 Earnings Conference Call October 28, 2021 9:00 AM ET Company Participants John Haley - Chief Executive Officer Andrew Krasner - Chief Financial Officer Carl Hess - President & Future Chief Executive Officer Conference Call Participants Elyse Greenspan – Wells Fargo Mark Marcon - Baird Mike Zaremski - Wolfe Research Mark Hughes - Truist Paul Newsome - Piper Sandler Ryan Tunis - Autonomous Research Meyer Shields – KBW Shlomo Rosenbaum – Stifel Operato ...

Willis Towers Watson © 2021 Willis Towers Watson. All rights reserved. Earnings Release Supplemental Materials 2021 Third Quarter Financial Results October 28, 2021 willistowerswatson.com WillisTowers Watson Iıl"I"Irl Willis Towers Watson Forward Looking Statements This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as "may", "will" ...

willistowerswatson.com Willis Towers Watson Investor Day September 9, 2021 Willis Towers Watson Forward Looking Statements (1 of 2) This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as "may", "will", "would", "expect", "anticipate", "believe", "estimate", "plan", "intend", "continue", or similar words, expressions or the negative ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-16503 WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY (Exact name of registrant as specified in its charter) Ireland (Jurisdiction o ...