Willis Towers Watson outlines growth strategy at Investor Day

Unveils “Grow, Simplify, Transform” strategy to unlock value...

• Announces Three-Year Financial Targets
• Expects to Return $4+ Billion to Shareholders in Fiscal Years 2021-2022 Through Share Buybacks

Willis Towers Watson will outline its strategy to drive long-term growth and value creation for shareholders at its Investor Day today.

“Our distinctive mix of highly complementary businesses, scale and global reach has delivered superior value to our clients, colleagues and shareholders”

John Haley
CEO

“Our distinctive mix of highly complementary businesses, scale and global reach has delivered superior value to our clients, colleagues and shareholders,” said John Haley, Willis Towers Watson’s chief executive officer. “I am confident that – under the leadership of Carl Hess and his highly-accomplished global leadership team – our strategy sets the course to accelerate our performance as an independent company and positions Willis Towers Watson for a bold new future.”

“We have a world-class team and are energized and focused as we execute our strategy to capture the significant opportunities ahead.”

Carl Hess              
president and future CEO

Carl Hess, president and future chief executive officer, added, “The central priorities of our strategy – grow, simplify and transform – build upon our core strengths, with a focus on driving sustainable revenue growth, improved operating margins and higher free cash flow conversion. We are committed to a disciplined capital allocation policy, beginning with a plan to return $4+ billion to shareholders through share buybacks by fiscal year-end 2022. We have a world-class team and are energized and focused as we execute our strategy to capture the significant opportunities ahead.”

At today’s event, Willis Towers Watson will outline the key drivers of its strategy to build from its strengths, unlock shareholder value and achieve financial leadership. These drivers include:

• Grow at or above market in priority areas. Focus on core opportunities with the highest growth and return, including gaining market share in Risk and Broking and Individual Marketplace; innovating and evolving our offerings in markets such as defined contribution and wealth management; expediting capabilities in fast growth markets like health insurance markets, cyber and climate; and bringing targeted solutions to clients reflecting more connected offerings.
• Simplify the business to increase agility and effectiveness. Streamline operational structure, develop a globally consistent client model and enhance growth operations to improve sales and retention outcomes. This includes an agile decision-making process to increase speed of execution.
• Transform operations to drive savings while enhancing our client and colleague experiences. Drive $300+ million in expected cost reductions to contribute 300 bps of margin improvement toward a fiscal year 2024 margin target through maximizing global platforms, right-shoring operations, rationalizing real estate and modernizing IT.

Three-Year Financial Targets

Willis Towers Watson will provide an update on its financial targets to reflect the company's growth strategy and commitment to driving shareholder value. By year-end fiscal 2024, the company expects to:

• Grow its revenues to $10+ billion by delivering growth in the mid-single digit range or greater, with reinvestment in differentiated solutions and scalable innovation, while continuing to capture market share.
• Improve margins to 24-25% through $300+ million net run-rate savings driven by transformation and efficiency initiatives, as well as operating leverage as the business grows.
• Generate higher free cash flow conversion to deliver $5-6 billion in free cash flow which when combined with the after-tax proceeds from the Willis Re divestiture and current cash balances will give the company $10-11 billion of available cash by 2024 to help drive shareholder value.
• Return significant capital to shareholders beginning with the execution of $4+ billion in share buybacks during fiscal years 2021-2022, all while maintaining the agility to invest in bolt-on opportunities to accelerate growth, acquire industry-leading capabilities and support our world-class team.
• Achieve adjusted EPS of at least $18-21 per share and deliver industry leading total shareholder return.

Additional information will be shared during the Investor Day. Presenters will include: John Haley, chief executive officer; Carl Hess, president and future chief executive officer; Andrew Krasner, chief financial officer; Mike Burwell, former chief financial officer; Adam Garrard, head of Risk and Broking; Julie Gebauer, head of Health, Wealth and Career; and Gene Wickes, head of Benefits Delivery and Administration – Health, Wealth and Career.