Investor Presentaiton
Appendix C: Adjusted Operating Income and Margin and
Reconciliation of Return on Invested Capital (ROIC)
Return on Invested Capital (ROIC) is a non-GAAP measure calculated as adjusted net operating profit after tax (NOPAT) divided by average invested
capital (short-term debt, + long-term debt + total equity) and represents how well we are allocating our capital to generate returns. 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.
Aon Corporation
Continuing Operations - Externally Reported Financial Metrics
Cont. Ops Cont. Ops Cont. Ops Cont. Ops Cont. Ops Cont. Ops
(millions)
FY'10
as reported
Revenue
Consolidated operating income as reported
Consolidated operating margin - as reported
Restructuring
Pension adjustment
Hewitt related costs
Transactions/Headquarter relocation costs
Legacy receivable write-off
Anti-bribery, regulatory and compliance initiative
Legacy Litigation
14.6%
14.1%
172
244
113
FY'11 FY'12 FY'13 FY'14 FY'15 FY'16
8,512 11,287 11,514 11,815 12,045 11,682 11,627
1,244 1,596 1,596 1,671
1,966 1,848 1,906
13.9% 14.1%
16.3% 15.8% 16.4%
101
174
FY'17
FY'18
FY'19
FY'20
9,998 10,770 11,013 11,066 12,193
979 1,544 2,169 2,781 2,090
9.8% 14.3% 19.7% 25.1% 17.1%
497
485
451
FY'21
FY'22
12,479
3,669
29.4%
49
40
47
3
18
24
5
15
123
1,436
28
35
55
Pension settlement
176
220
128
75
75
13
Legal settlement
Amortization of Intangible Assets
58
154
362
Total Adjustments
424
543
423
548
395
574
352
387
314
490
277
704
593
512
1,357
1,153
392
856
246
147
113
369
1,583
171
Consolidated operating income - as adjusted
$ 1,668
AON
Consolidated operating margin - as adjusted
Adjusted Effective tax rate (%)
NOPAT (Adj. Ol*(1-Adj. Tax Rate))
Short-term debt and current portion of long-term debt
Long-term debt
Total Debt
Total Shareholder's Equity
Noncontrolling interest
End of Period Total Invested Capital
Average Total Invested Capital
ROIC (NOPAT/Average Total Invested Capital)
10,126 12,712 12,291 12,277 12,399 11,986
19.6%
$ 2,139 $ 2,144 $ 2,245 $ 2,353 $2,338 $ 2,418 $2,336 $2,697 $ 3,025 $ 3,150 $3,673 $ 3,840
19.0% 18.6% 19.0% 19.5% 20.0% 20.8% 23.4% 25.0% 27.5%
28.5%
30.1%
30.8%
28.9%
27.3% 26.1% 25.4% 18.9%
17.9% 16.8% 14.9% 15.6% 17.5%
17.6% 18.4%
16.7%
$ 1,186 $ 1,555 $1,584 $1,675 $ 1,908
$ 1,919 $2,012 $1,988 $ 2,276 $2,496 $ 2,596 $2,997 $3,199
492
337
452
4,014
4,155
3,713
703
3,686
783
4,799
562
336
299
251
712
448
5,138
5,869
5,667
5,993
6,627
7,281
1,164
8,228
945
9,825
4,506
4,492
4,165
4,389
5,582
5,700
6,205
5,966
6,244
7,339
7,729
8,251
8,078
7,762
8,145
6,571
6,002
5,475
4,583
4,151
3,375
55
42
43
50
60
57
57
65
68
74
3,495
88
9,392 10,770
1,061
97
(529)
100
12,812
12,612
11,970
12,584
12,213
11,759
11,737
10,614
10,463
10,788
11,312
10,550
10,341
11,748 11,176
10,539
10,626
11,050 10,931 10,446
11.7%
12.2%
12.9%
13.6%
15.4%
16.0% 17.1% 17.8%
21.6% 23.5% 23.5% 27.4% 30.6%
24
14View entire presentation