Outsourcing Town Hall Q2 2012 Outsourcing Town

Transcript:Outsourcing Town Hall Q2 2012 Outsourcing Town:
Outsourcing Town Hall Q2 2012 Outsourcing Town Hall Q4 2012 Topics Financial Results & Business Snapshots Technology HR BPO Proprietary & Confidential 1 Financials & Business Snapshots Key Metrics*– Aon Delivered Significant Progress in Q4 & 2012 Organic Revenue Solid growth across both Risk and HR Solutions in Q4, including strong growth in Consulting Services of +8% Rate of organic revenue for 2012 has improved to +4% from +2% in 2011, 0% in ‘2010 and -1% in 2009 Operating Margin In Q4, a +50bps increase in HR Solutions was primarily offset by higher unallocated expenses For 2012, Risk Solutions increased+10bps as organic growth and restructuring savings more than offset significant investments in the business EPS In Q4, organic revenue, restructuring savings, lower effective tax rate and effective capital management drove 9% growth Repurchased approximately $500 million of ordinary shares in Q4 and $1.1 billion in 2012 * The key metrics above are non-GAAP measures that are reconciled in the appendix of this presentation Organic revenue excludes the impact of foreign exchange, acquisitions, divestitures, transfers, reimbursable expenses and unusual items. Change in organic revenue, a non-GAAP measure, is reconciled to the corresponding U.S. GAAP percent change in revenue in Appendix A of this presentation Certain noteworthy items impacted Operating Income and Earnings per Share in the fourth quarter and full year of 2012 and 2011. A Reconciliation of Non-GAAP Measures for Operating income and Diluted Earnings per Share is in Appendix B of this presentation Free cash flow is defined as cash flow from operations less capital expenditures. This non-GAAP measure does not imply or represent a precise calculation of residual cash flow available for discretionary expenditures. A reconciliation can be found in Appendix A of this presentation Free Cash Flow Improved working capital performance (predominantly accounts receivable) more than offset an increase in pension contributions Record cash flow from operations of $1.4 billion in 2012 Proprietary & Confidential 3 Organic Revenue¹ – Solid Growth Across Each Segment Q4 Americas: Solid growth across all regions: Latin America, U.S. retail and Canada International: Strong growth across Asia and emerging markets and modest growth in continental Europe, partly offset by a modest decline in Australia Reinsurance: Strong growth in treaty globally driven by a favorable impact from pricing in the near-term and new business, partially offset by a significant decline in capital markets transactions and advisory business Q4 Consulting: Strong growth in investment