Investor Presentaiton
Franchise Position + Strong Operating Performance, Substantial Free
Cash Flow and Track Record of Managing Credit Profile
Consistently Strong Operating Performance...
Committed to Mid-Single-Digit or Greater Organic Revenue Growth Over the Long-Term
Strong core business is largely recurring, and often regulatorily required, with 95%+
retention rates on average across the portfolio
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Track record of +4% average annual organic revenue growth from 2010-2022, with +6%
organic revenue growth in 2022
。 Resilient top-line performance during challenging economic environments, with -1%
organic revenue in 2009 (GFC), and +1% organic revenue in 2020 (Covid)
Driven by three areas: Delivering client value with continued improvement in core
businesses, portfolio mix-shift towards areas of faster growing client demand and data-
driven solutions, and net new opportunities that increase our total addressable market
Sustainable Operating Margin Expansion Net of Investment in Long-Term Growth
From 2010-2022, increased adjusted operating margin by 1,120 bps or over 90 bps per year
on average
Consistently strong operating performance through economic cycles, as operating model
enables strong expense discipline and flexibility to reduce certain discretionary expenses, if
necessary
Driven by three areas: Top-line growth, portfolio mix-shift to higher contribution margin
businesses, and increased operating leverage from ongoing productivity improvements from
our Aon Business Services platform
...With Substantial Free Cash Flow and Strong Balance Sheet Reinforces Financial Stability and Resilience
Substantial free cash flow with continued focus on
optimizing the translation of revenue into cash
Generated over $3.0B of free cash flow in 2022,
with free cash flow CAGR of +13% from 2010-
2022
Expect to deliver double-digit free cash flow
growth in 2023 and over the long-term, driven by
growth in operating income and ~$500 million
long-term improvement opportunity in working
capital
Have taken steps to reduce structural uses of cash,
including from pension contributions
Significant financial flexibility driven by strong free cash flow generation and
balance sheet strength
Strong liquidity from multiple sources: free cash flow generation, $1.2B of
cash on the balance sheet as of Q2'23, $1.75B of available committed credit,
and access to commercial paper programs
Conservative debt profile with $11.3B of debt as of Q2'23
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Debt maturities well laddered with manageable maturity towers (<~$1.0B)
All term debt is fixed rate, with a weighted average maturity of ~11 years
Have taken steps to reduce the size and volatility of lease and pension
liabilities through smaller lease footprint aligned with our Smart Working
strategy, pension contributions, lump-sum pension settlements, and closing
pension plans to new entrants
Committed to maintaining a strong investment
grade credit profile
Aon is rated A- by S&P, BBB+ by Fitch and
Baa2 by Moody's; S&P's and Fitch's ratings
have a stable outlook; Moody's rating has a
positive outlook
History of effectively managing credit profile
under various macroeconomic conditions and
while executing a range of strategic initiatives
underscores this commitment
Maintained credit ratings through significant
acquisitions and divestitures (Hewitt, Alight)
AON
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Certain results presented on this page are non-GAAP measures that are reconciled to their corresponding U.S. GAAP measures in the Appendices of this presentation.
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