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Outsourcing Town Hall
Q4 2012
Outsourcing Town Hall
Q2 2012
Topics
 Financial Results & Business Snapshots
 Technology
 HR BPO
Proprietary & Confidential
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Financials & Business Snapshots
Key Metrics*– Aon Delivered Significant Progress in Q4 & 2012
Q4
2012
+4%
+4%
+3%
+2%
Organic Revenue

1. Organic Revenue1
Prior Year

Solid growth across both Risk and HR Solutions in Q4, including
strong growth in Consulting Services of +8%
Rate of organic revenue for 2012 has improved to +4% from
+2% in 2011, 0% in ‘2010 and -1% in 2009
Operating Margin
2. Operating Margin2
19.6%
18.6%

Y-o-Y change
-
-40 bps

$1.27
$4.21
EPS
+9%
+4%
3. Earnings per Share2
Y-o-Y change


4. Free Cash Flow3
Y-o-Y change
$484M
$1.2B
+243%
+48%
2
3
In Q4, organic revenue, restructuring savings, lower effective tax
rate and effective capital management drove 9% growth
Repurchased approximately $500 million of ordinary shares in
Q4 and $1.1 billion in 2012
Free Cash Flow


*
1
In Q4, a +50bps increase in HR Solutions was primarily offset by
higher unallocated expenses
For 2012, Risk Solutions increased+10bps as organic growth
and restructuring savings more than offset significant
investments in the business
Improved working capital performance (predominantly accounts
receivable) more than offset an increase in pension contributions
Record cash flow from operations of $1.4 billion in 2012
The key metrics above are non-GAAP measures that are reconciled in the appendix of this presentation
Organic revenue excludes the impact of foreign exchange, acquisitions, divestitures, transfers, reimbursable expenses and unusual items. Change in
organic revenue, a non-GAAP measure, is reconciled to the corresponding U.S. GAAP percent change in revenue in Appendix A of this presentation
Certain noteworthy items impacted Operating Income and Earnings per Share in the fourth quarter and full year of 2012 and 2011. A Reconciliation of NonGAAP Measures for Operating income and Diluted Earnings per Share is in Appendix B of this presentation
Free cash flow is defined as cash flow 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. A reconciliation can be found in Appendix A of this presentation
Proprietary & Confidential
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Organic Revenue¹ – Solid Growth Across Each Segment
Q4
2012
Q4
Risk Solutions
Americas
4%
3%
International
2%
3%
Retail
3%
3%
Reinsurance
2%
5%
Total Risk Solutions
+3%
Americas: Solid growth across all regions: Latin
America, U.S. retail and Canada

International: Strong growth across Asia and
emerging markets and modest growth in continental
Europe, partly offset by a modest decline in
Australia

Reinsurance: Strong growth in treaty globally driven
by a favorable impact from pricing in the near-term
and new business, partially offset by a significant
decline in capital markets transactions and advisory
business
+4%
HR Solutions
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
Q4
Consulting
8%
4%
Outsourcing
6%
5%
Total HR Solutions
+6%
+4%
Total Aon
+4%
+4%

Consulting: Strong growth in investment consulting,
pension administration services and talent and
rewards consulting

Outsourcing: Strong growth from HC exchanges,
new client wins and demand for discretionary
services in HR business process outsourcing, partly
offset by a modest decline in benefits administration
Organic revenue excludes the impact of foreign exchange, acquisitions, divestitures, transfers, reimbursable expenses and unusual items. Change in
organic revenue, a non-GAAP measure, is reconciled to the corresponding U.S. GAAP percent change in revenue in Appendix A of this presentation
Proprietary & Confidential
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Q4 2012 Aon Financials
Q4 2012
Q4 2011
Change Vs. Prior
Year Quarter
Aon Revenue (reported)
$3.1 billion
$3.0 billion
4%, 4% OCC
Aon Operating Income (adjusted)
$610 million
$588 million
4%
Revenue (reported)
$2.1 billion
$2.0 billion
2%, 3% OCC
Operating Income (adjusted)
$475 million
$464 million
2%
Operating Margin (adjusted)
23.2%
23.2%
0 bps
Revenue (reported)
$1.1 billion
$1.0 billion
7%, 6% OCC
Operating Income (adjusted)
$183million
$165 million
11%
Operating Margin (adjusted)
17.0%
16.5%
50 bps
$445 million
$405 million
10%, 8% OCC
$649 million
$603 million
8%, 6% OCC
Risk Solutions (Retail and Reinsurance)
HR Solutions (Aon Hewitt)
Consulting
 Net Revenue (reported)
Outsourcing
 Net Revenue (reported)
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INSERT BUSINESS FINANCIALS HERE
Note to presenters: We can not show specific financial
results for Benefits, HR BPO, Exchanges, or Emerging
Solutions due to external reporting guidelines. However,
leaders in each organization will receive a separate slide for
reporting their results. Insert the appropriate slide here
based on your audience.
Proprietary & Confidential
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Aon Risk Solutions Full-Year 2012 Snapshot

Top-line growth of 3%, 3% Americas, 3% International

Strong double-digit growth in Asia, New Zealand, Latin
America and EMEA AGRC and GRIP Solutions

Challenging revenue and PTI in a number of
businesses (i.e., Germany, Spain, UK Affinity,
Latin America Affinity and Australia)


Solid organic growth in US Affinity, France and emerging
markets (Africa, Central and Eastern Europe)
Overall weak new business in many
geographies; overall improved in second half
but was flat for the full year


Overall 7% revenue growth in Health & Benefits (4%
Americas, 4% International 10% including EMEA 7%, Asia
23%, Pacific 9%)
Negative / minimal spread in key
geographies constrained PTI and margin
expansion

Strong retention 92% and improved rollover 91% with
slightly more favorable market environment

Double digit percentage PTI expansion in US Retail,
Canada, Latin America, France, Africa, and Asia driven by
growth and positive spread

Progress on key initiatives: Aon Broking, Aon Client
Promise, Aon GRIP, Working Capital/Cash and on our
Talent agenda
Proprietary & Confidential

Salary increases (merits and off cycle
increases) contributed to a 90 bp
deterioration in the SIB-to-revenue ratio
(our key metric determining margin) and put
significant pressure on margins
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Aon Benfield Full-Year 2012 Snapshot
 Annualized 5% organic revenue
growth to USD1.5bn
 Healthy 2% Q4 organic revenue
growth to USD349m
 5th consecutive quarter-on-quarter
revenue growth across Treaty, Fac,
Inpoint and capital markets business
 7th consecutive quarter of positive
new business won in Treaty
 The Aon Benfield platform is
unique: scale + analytics = client
value
 Measurable success from our
Articulating Value programme
Proprietary & Confidential
 Record levels of reinsurance
capital putting pressure on rates
in certain lines of business
 Pricing under pressure in some
sectors
 Potential for adverse
development related to
Hurricane/Superstorm Sandy
 Lower reinsurance demand due
to sluggish insurer demand growth
in difficult economic environment
 Very competitive insurance
landscape is also putting pressure
on reinsurance demand
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Aon Hewitt Full-Year 2012 Snapshot
 Good PTI performance to plan
 Delivered solid growth of 4%
 Year over Year PTI and margin
decline driven by:
- Outsourcing: HR BPO, Emerging
Solutions and Exchanges
– Outsourcing compression/losses
- Consulting: U.S. Retirement, PRT,
APAC, NA Communications
– Slow first half growth in Consulting
 Growth rate accelerating in new
areas: Investment Consulting, Pension
De-Risking, Exchanges, Advisory
 Regaining market innovator
reputation
– PeopleSoft impacts
– Investments
 Macroeconomic concerns impacted
demand in EMEA and APAC
 Colleague engagement lagging other
progress
 Near flawless enrollment season in
Exchanges
 Improvement in client retention and
compression rates
 Client satisfaction trending up
 Turning the corner on PeopleSoft
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Proprietary & Confidential
We Exceeded Our Plan Commitments on 2012 Pre-Tax Income
Much to be proud of this year, but still below our pre-tax income (PTI) results for
2011
$668MM
$651MM
$636MM
$605MM
2011
Actual
2012
Plan
2012 Stretch
Target
2012
Actual
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Aon Hewitt’s Newest Line of Business: Health Care Exchanges
Aon Hewitt Navigators
104.9%
AE Results
0
99.7%
92%

2013 Focus


New medical plan enrollments
compared to our target
Corporate Exchange
100,000
Missed appointments
36,000
Appointments completed on
time
Customer satisfaction in
interactions with benefits
advisors
Aggressively grow through both
business-to-business and direct-toconsumer strategies
Deploy a new platform and website to
enhance retiree experience and team
productivity
Ramp up for increased enrollment
volume for 2013 AE (3x 2012 levels)



Total plan enrollments for
medical, dental, and vision
Total AE calls taken across 3
Corporate Exchange clients
95%
AE calls answered in 30
seconds or less
94%
Portion of enrollments
completed online
Convert strong client interest into
confirmed wins
Scale our operations to support the high
demand for this solution
Differentiate our solution in the market—
we offer a real exchange with true
competition between carriers
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Technology
Improving the Colleague Experience Through Technology
 Aon Technology continuously works to improve
colleague productivity—offering enhanced
collaboration, conferencing, and
communication tools.
 Between now and Q2 2014, there are a
number of impactful changes planned,
including:
– Standardizing the Aon colleague desktop
with Office 2010, Windows 7, and Aon
AppStore.
– Increasing access to corporate email,
calendar, instant messaging, and contacts
through various mobile technologies.
– Making it easier to share files across the
organization.
– Expanding voice and video capabilities.
– Standardizing North America printer, fax,
copier, and scan equipment.
– Ensuring the Global Service Desk offers
the highest quality standards.
 Visit the Colleague Technology Experience site
to learn more and share your experiences.
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BPO
HR BPO
• Several strong golives
• 7 renewals
• 2 significant client
awards
• Lost 2 clients
Client
relationships
very strong
Proprietary & Confidential
• Achieved 11
Enthusiastic Client
Certificates
• Implemented and
invested in shared
service models to
maximize
colleague
development and
quality delivery
• Launched
incubation teams
to help solve key
business
challenges
Shareholders
• Signed Morgan
Stanley
Colleagues
Clients
HR BPO 2012 Snapshot
Colleagues are
the core of our
business
• Revenues up YOY
• Margins down
YOY
• Did not make plan
• Invested in
OmniPoint
• Expanded
Workday offer
• Invested in myHR
• Launched
MERCURI to
generate
innovation
Need to grow
revenue and
focus on margin
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Our New Themes for 2013
Proprietary & Confidential
Scale
• Shared services
• Operations
• Structure/alignment
Growth
• SaaS/Workday BPO
• OmniPoint
• Core BPO solution
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Our Business Plan Balances the Interests of Our Three Primary Stakeholders
1
Fulfill our full promise
to clients
Achieve the
short and long term
business plan
6
2
Deliver industry leading
service excellence
and operational
effectiveness
Realize the return on
our strategic and
growth investments
5
Colleagues
3
4
Drive results through increased focus,
business acumen and accountability
Foster a culture where colleagues
can do their best work and new
ideas are nurtured
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2013 HR BPO Goals
Clients
Colleagues
Shareholders
Aon Hewitt 2013 Goals
BU Goals
1
Fulfill our full promise to
clients
 12+ BPO clients sign the Enthusiastic Client Certificate
 Retain all clients and core services
2
Deliver industry leading
service excellence and
operational effectiveness
 Meet or exceed SLA performance in >98% of all opportunities
on all BPO accounts
 Increase off-shoring capability on current and future accounts
 Increase standardization and quality of service delivery
3
Drive results through
increased focus,
business acumen and
accountability
 Substantially increase SaaS capabilities
 Define and implement multi-client operational teams on the
Workday platform
 Identify and grow next generation of managers
4
Foster a culture where
colleagues can do their
best work and new ideas
are nurtured
 Adopt shared services models to gain scale and leverage
 Implement cross-BPO specific engagement programs
 Increase internal talent movement within BPO
5
Realize the return on our
strategic and growth
investments
 Integrate and grow OmniPoint
 Define and implement a valued and scalable Workday BPO
offer
Achieve the short and
long term business plan
 Meet or exceed sales targets for BPO
 Exceed 2013 PTI margin goals
 Meet or exceed all deal models
 Positively resolve all accounts with substantial contractual/
financial decisions in 2013
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