Investor Presentaiton slide image

Investor Presentaiton

AON Appendix E: Reconciliation of Free Cash Flow & Free Cash Flow Margin Free Cash Flow Margin is a non-GAAP measure calculated as Free Cash Flow (defined as Cash Flows from Operations less Capital Expenditures) / Total Revenue and represents our conversion rate of revenue into cash. The metric for the historical periods shown below was calculated using financial results for total consolidated Aon, and therefore includes discontinued operations in connection with the sale of the outsourcing business completed on May 1, 2017, which will not be included on a going forward basis. ($ millions) FY'10 FY'11 FY'12 Revenue as reported 8,512 11,287 11,514 FY'13 11,815 FY'14 12,045 FY'15 FY'16 FY'17 11,682 11,627 9,998 FY'18 10,770 FY'19 11,013 FY'20 FY'21 FY'22 11,066 12,193 12,479 Cash Provided by Operating Activities¹ Capital Expenditures 876 (180) 1,112 (241) 1,534 1,753 1,812 2,009 2,326 (269) (229) (256) (290) (222) 669 (183) 1,686 (240) 1,835 (225) 2,783 (141) 2,182 3,219 (137) (196) Free Cash Flow - as Reported 696 871 1,265 1,524 1,556 1,719 2,104 486 1,446 1,610 2,642 2,045 3,023 Free Cash Flow Margin 8.2% 7.7% 11.0% 12.9% 12.9% 1 24.2% In Q4'15, we reclassified certain cash flows related to employee shares withheld for taxes. This resulted in reclassifying $94M and $115M for the FY'11 and FY'12, respectively, from "Accounts payable and accrued liabilities" and "Other assets and liabilities" within Cash Flows From Operating Activities, to "Issuance of shares for employee benefit plans" within Cash Flows From Financing Activities. Free Cash Flows (Unaudited) 14.7% 18.1% 4.9% 13.4% 14.6% 23.9% 16.8% Six Months Ended June 30, (millions) 2023 2022 % Change Cash Provided by Operating Activities $ 1,131 $ 1,131 -% Capital Expenditures (145) (68) 113 % Free Cash Flows (¹) $ 986 $ 1,063 (7)% 1 Free cash flow is defined as cash flows 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. 26
View entire presentation