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.
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