tbr 4q10 accenture report

TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

Technology Business ResearchAccelerating Customer Success Through Business Research

TBR


Accenture

PROFESSIONAL SERVICES BUSINESS QUARTERLYSM

Fourth Calendar Quarter 2010First Fiscal Quarter 2011 Ended Nov. 30, 2010

TBR OUTLOOK - POSITIVE TBR SCORE (0-10 SCALE)

5.96Publish Date: Jan. 12, 2011Author: Elitsa Bakalova ([email protected]), PSBQ AnalystContent Editor: Alison Crawford, PSBQ Senior Analyst/Project Manager

© 2010 Technology Business Research, Inc.

TBR

TBR SOFTWARE BUSINESS QUARTERLYSM

Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.3

Company Analysis3 Executive Summary8 Strategy Overview11 Corporate SWOT Analysis14 Financial Model Strategy18 Go-to-Market & Services Strategies22 Alliance & Acquisition Strategies24 Geographic Analysis25 Resource Management Strategy27 Future Outlook

Company Data Models28 Income Statement29 Balance Sheet30 Service Line Model31 Operating Group Model

32 Geographic Model33 Operating Expense Model35 Financial Strategy Graphs37 Go-to-Market Graphs38 Resource Management Graphs40 Acquisitions Table41 Portfolio of Services Table42 Quarterly Signings Tables50 Strategic Alliances Tables52 Worldwide Locations Table

Contents


TBR



1

1

1

Key Developments

Accenture’s revenue is growing and increased signings and demand suggest business growth

• Accenture is returning to sustainable top-line growth, which, coupled with its stable profit levels, will help the company achieve its long-term profitable growth aspirations. Accenture’s revenue exceeded its guidance range, reaching $6.05 billion, the highest level since 2Q08. Consulting & SI, which were hit hard by the recession, are now contributing to Accenture’s growth and providing growth opportunities. The company indicates that more clients have confidence in their businesses and will make more investments in 2011. Lingering economic uncertainty in some geographies (e.g., in Europe), may provide challenges for Accenture during FY11; however, the company’s ability to adjust its portfolio to the market environment positions Accenture for long-term gains.

Accenture is making tuck-in acquisitions to fill gaps in its portfolio and support organic growth

• Accenture continued to leverage acquisitions to expand its offerings and capabilities (e.g., three acquisitions announced in November). Accenture’s acquisition strategy remains focused on relatively small-scale, tuck-in acquisitions to fill gaps in its offerings (e.g., expand its software offerings) and expand its capabilities and global reach.

• In FY11, TBR believes Accenture will make more small-scale acquisitions, given its ability to fund such transactions, as well as its history and expertise in integrating companies.

Accenture is expanding its global service delivery capabilities

• Accenture continues to strengthen its Global Delivery Network (GDN), adding new facilities in key lower-cost locations (e.g., three new sites in the Philippines). TBR believes Accenture’s GDN is a competitive differentiator for the company due to its global spread (not limited to one or two regions); the global spread allows the company to serve clients according to their needs at competitive prices. TBR expects Accenture will further develop its GDN, and LATAM is one example where the company can grow its resources.

Accenture has a new CEO, but maintains the same strategy

• Bill Green, chairman and CEO of Accenture, is stepping down as CEO at the end of 2010 after six years. Pierre Nanterme, Accenture’s incoming CEO, is fully committed to achieving the goals the company has set for its FY11.

Executive SummaryExecutive Summary

New talent and leadership will strengthen Accenture’s focus on meeting client demand during 2011


TBR



Accenture Corporate Strategies• Achieve profitable growth (grow revenue by 8.0% to

11.0% in local currency and reach operating margin of 13.6% to 13.7% in FY11).

• Expand business from three dimensions:• Refreshed core business (consulting, technology and

outsourcing services) is the primary growth engine.• In addition to core business, grow in service areas –

cloud, cybersecurity, analytics, digital services, smart grid, mobility and sustainability.

• Geographic expansion in six strategic growth markets (BRIC, Mexico and South Korea) and strengthening position in mature markets.

• Develop talent and maintain a strong balance sheet.

TBR Position:Accenture will continue to excel at finding pockets of demand and meeting client needs as the business environment improves across developed economies through 2011.

• Accenture will continue to focus on profitable growth, and driving its business from several dimensions (e.g., core business, high-growth offerings and geographic expansion) will be key to its success.

• Accenture’s ability to serve clients across the whole value chain will help the company gain traction as the economy and investments improve in 2011.

• The return of consulting & SI demand, which supported Accenture’s bookings in the service area, indicates that clients are increasingly open to invest in areas such as transformation and growth, as well as operational excellence. By leveraging its strong consulting & SI capabilities and brand, Accenture will reap further benefits in the near term.

• Hiring activities will continue during FY11 at similar levels to FY10. The key to success is Accenture’s ability to quickly deploy people, allowing the company to not only generate operational efficiencies but also meet increasing market demand and successfully provide its improved offerings portfolio.

Executive Summary

(in $ millions) Consensus Guidance Range ActualAccenture Net Revenue $5,620 $5,600 - $5,800 $6,046Accenture Operating Income N/A N/A $827Accenture Non-GAAP EPS $0.75 $0.75- $0.95 $0.81

(in $ millions) TBR Estimate Consensus Guidance RangeAccenture Net Revenue $5,736 $5,570 $5,600 - $5,800Accenture Operating Income $774 N/A N/AAccenture Non-GAAP EPS N/A $0.69 $0.8- $0.95

ACCENTURE'S 4Q10 PERFORMANCE VS. EXPECTATIONS

ACCENTURE'S 1Q11 GUIDANCE AND EXPECTATIONS

Accenture is capturing the wave of demand, as its revenue and signings are steadily improving and more business opportunities are on the horizon


TBR



Quarterly Segment Performance

Segment Key Changes & Drivers 4Q10Revenue

Growth Y/Y Trends to Monitor

Consulting & SI

• Accenture’s Consulting & SI business grew across verticals such as financial services, resources, products (grew revenue in APAC), communications & high-tech and healthcare (in the Americas).

• Consulting & SI accounted for 59.0% of net revenue, up 100 basis points from 58.0% in 4Q09.

$3.6billion 14.3%

• In Consulting, Accenture will see more work in 2011 in areas such as operational excellence, growth and innovation of technology infrastructure.

• SI is rebounding and showing strength in key areas such as assisting in post-merger integration and rationalization of technology platforms.

• An improving Consulting pipeline, up 25.0% year-to-year in 4Q10, will help Accenture grow its signings.

Outsourcing

• Accenture’s Outsourcing business grew in verticals such as resources, communications & high-tech and health & public service (driven by the U.S. Federal sector).

$2.5 billion 9.5%

• Technology Outsourcing is well-positioned for growth, as clients continue to seek to optimize their costs.

• In BPO, clients look for cost benefits in F&A, procurement and industry-specific processes largely in North America and Europe.

Executive Summary

Consulting and SI rebounded strongly, and along with outsourcing, will contribute to overall growth


TBR



Revenues• Accenture’s net revenue grew 12.7% year-to-year to $6.05

billion in 4Q10. Improving demand in Consulting & SI and strong Outsourcing demand is supporting revenue growth; however, year-to-year comparisons remain easier due to top-line contractions during the past quarters.

Expenses• SG&A expenses as a percentage of revenue fell 70 basis points

from 19.2% in 4Q09 to 18.5% in 4Q10, resulting from lower G&A costs to actively manage its cost structure and a reduction in bad debt reserve. Higher business development costs caused increases in sales and marketing costs as Accenture focused on growing its pipeline and bookings.

Margins• Gross margin was 32.2%, down 90 basis points from 33.1% in

4Q09 due to higher subcontractor use and higher recruiting and training, especially for new employees, as Accenture focused on satisfying demand and driving growth.

• Operating margin decreased 20 basis points year-to-year to 13.7% in 4Q10, with improved operating margins in three of the operating groups, excluding Resources and Health & Public Service, which had lower contract profitability in some of the public service areas and higher selling costs as Accenture looks for new business.

• Accenture’s goal to have an operating margin of 13.6% to 13.7% for FY11 is attainable due to its overall cost management and focus on operational excellence.

Profitable growth will be achieved by combining a focus on cost management with operational excellence

Executive Summary

ACCENTURE'S NET REVENUE GROWTH AND PROFITABILITY

$5,383 $5,176$5,571 $5,421 $6,046 $5,736

$445 $400 $491 $445 $535 $479

-10.6%-1.7%

8.3% 5.3% 12.3% 10.8%

$0$1,000

$2,000$3,000$4,000$5,000

$6,000$7,000

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.

In $

Mill

ions

-40.0%-30.0%

-20.0%-10.0%0.0%10.0%

20.0%30.0%

Net Revenue Net Income Revenue Growth Year-to-year

Net

Rev

enue

Gro

wth

Yea

r-to

-yea

r

SOURCE: TBR AND ACCENTURE

TBR

ACCENTURE'S GROSS AND OPERATING PROFIT AND PROJECTIONS

32.9%32.2%34.0%34.7%32.7%33.1%

13.5%13.7%13.2%14.4%12.6%13.9%

0%

10%

20%

30%

40%

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.Gro

ss a

nd O

pera

ting

Mar

gin

Gross Margin Operating MarginSOURCE: TBR AND ACCENTURE

TBR


TBR



4Q09 1Q10 2Q10 3Q10 4Q10Financial Model Strategy: 5.73 5.91 5.96 6.03 6.23Go-to-Market & Services Strategies: 5.89 6.23 6.68 6.31 6.46Resource Management Strategy: 5.37 5.10 5.03 4.97 5.19TOTAL AVERAGE TBR SCORE: 5.66 5.75 5.89 5.77 5.96

TBR SCORING SUMMARY: CALENDAR QUARTER RESULTS

Accenture’s scores reflect its expanded revenue base, stable profitability and high utilization

Accenture is outperforming its peers through its financial metrics, due largely to its stable operating income and net income. Accenture’s solid revenue in 4Q10 has led the company to outperform its peers in the Go-To-Market & Services metrics, as this was the second-highest quarterly revenue ever reported by Accenture.

Key ■ Represents an area where Accenture is currently challenged versus peers ■ Represents an area where Accenture is outperforming its peers

■ Represents an area where Accenture is neither significantly outperforming nor underperforming its peers

Executive Summary

FINANCIAL METRICSTBR

ScoreCompany

FigureAverage in Class

Standard Deviation/2

Operating Margin 5.65 13.7% 9.7% 6.1%Current Ratio 4.42 1.47 1.77 52.4%Debt-to-Asset Ratio 3.65 0.74 0.57 12.7%Return on Assets (TTM) 6.59 15.2% 8.1% 3.4%Return on Equity (TTM) 8.17 55.7% 19.2% 11.5%

TOTAL AVERAGE TBR SCORE

GO-TO-MARKET & SERVICES METRICSTBR

ScoreCompany



Revenue (in $ Millions) 7.64 $6,046 $2,421 $1,372Revenue Growth YTY 5.21 12.3% 9.6% 13.4%Backlog/Revenue 6.50 2.49 1.92 0.38 Day Sales Outstanding 6.96 42.38 64.96 11.49


RESOURCE MANAGEMENT METRICSTBR

ScoreCompany



Gross Margin 5.25 32.2% 30.7% 6.0%Operating Expenses as a % of Revenue 5.27 18.5% 19.8% 4.7%Revenue per Employee (TTM) 4.00 $112,948 $182,013 $69,263Operating Income per Employee (TTM) 4.86 $15,230 $18,169 $21,461Utilization Rate 8.35 87.0% 77.2% 2.9%Turnover 4.62 15.0% 14.1% 2.4%


6.23

6.46

5.19


TBR



Accenture is seeing success (e.g., revenue and signings growth) due to its focus on increasing its business momentum by delivering value to clients

Key Strategies

Grow business in three dimensions:• Refreshed core business is

Accenture’s primary growth engine.• Develop capabilities outside of core

business in growth service areas.• Expand geographically in six strategic

growth markets and gain traction in new markets.

• In addition to investment in growth, Accenture has taken steps to run as a high-performance business (e.g., focus on operational efficiency, higher offshore leverage, automation for service delivery, creating the role of chief performance officer in FY10). Given such measures, TBR expects the company to reach its FY11 profitability targets.

• Accenture will continue to attract clients with its core business – consulting, technology and outsourcing services – and will see near-term success given the improving market environment.

• Accenture continues to gain traction in areas like analytics (currently has ~70 client engagements). TBR notes that the competition in those service areas is increasing due to growth opportunities, which will challenge Accenture’s development.

• Accenture’s reshaped portfolio (i.e., improved core offerings and investment in new offerings like analytics, cloud computing, etc.) is proving attractive to clients. Accenture is seeing improvement in its top line and signings as well as a healthy bottom line – momentum that will continue during FY11.

Overall

Financial

Go-To-Market

Deliver profitable growth:• Grow FY11 revenue by 8% to 10% in

local currency, faster than the market.• Reach operating margin of 13.6% to

13.7% in FY11, up year-to-year by 10 to 20 basis points.

• Increase Accenture’s business momentum by focusing on delivering value to the client.

Strategy Overview


TBR



Key Strategies

• Accenture will continue to increase its headcount due to hiring initiatives related to market growth expectations and its focus on building out resources in the GDN.

• The development and shifting of service delivery to the GDN – especially for outsourcing and, increasingly, SI – will support Accenture’s long-term profitability and attract clients.

• Standard frameworks such as the Global Delivery Suite are creating service delivery efficiencies that also generate bottom-line benefits and help decouple the linearity of headcount growth.

• Alliances are key to the development of Accenture’s portfolio, especially in new service areas with high-growth potential such as cloud computing, analytics and public sector offerings (e.g., Component Tax Solution powered by Oracle).

• TBR expects additional tuck-in acquisitions during FY11, as Accenture looks to supplement its organic growth and fill gaps in its portfolio, IP and vertical expertise.

• Recruit people to expand GDN and accommodate for demand.

• Develop and increase leverage of global delivery capabilities.

• Invest in automation to offer differentiated, less risky implementations with more rapid ROI.

• Invest in training (e.g., technical, functional, industry, managerial and leadership) and professional development to gain the necessary skills to provide high-quality services.

Resources & Investments

Alliances & Acquisitions

• Make strategic alliances to expand in new areas of technology and vertical specific-offerings.

• Leverage tuck-in acquisitions to fill gaps in its portfolio.

Strategy Overview

Accenture is using alliances and acquisitions to develop its portfolio and is investing in hiring and training to address increasing market demand


TBR



Hiring will help Accenture address improving market demandTBR Assessment of Key Strategy: Recruit people to expand GDN and accommodate for demand

Accenture has shifted 77% of its GDN headcount to near/offshore regions and will

continue to expand in lower-cost regions and

across service lines with improving demand

Accenture has been expanding its headcount to address improving demand in the IT services market and support its future growth.

• During 4Q10, Accenture's headcount reached 210,951 people, up 20% year-to-year from 4Q09. The notable change is the uplift in Accenture’s GDN headcount as well as in its Consulting & Solutions people.

• The GDN reached 120,000 people in 4Q10, or 57% of Accenture’s total headcount, up from 94,800 in 4Q09. Near/offshore resources now account for 77% of the GDN headcount, which TBR believes will help the company improve its profitability.

• The key focus for lower-cost resource growth is expansion in India and the Philippines.• India has ~53,000 people and now accounts for nearly 45% of Accenture’s GDN and

has 19 global delivery centers of the 50 total GDN centers.• In the Philippines, Accenture is adding three new outsourcing facilities, growing

headcount from ~20,000 in 4Q10 to 25,000 in 3Q11 (end of FY11).

Strategy Overview

• Driven by signs of improving demand, Accenture is now boosting its Consulting & Solutions headcount (up 27% year-to-year to 130,983). This headcount was declining for most of 2009, as Accenture was adjusting capacity to the challenging market. New talent will help the company accelerate consulting & SI performance and accommodate for growing consulting bookings (up 16.4% year-to-year in 4Q10).

• During the rest of FY11, Accenture will continue with its global hiring initiative with the goal of hiring at least 64,000 people across its GDN. We believe Accenture will achieve its goals given its value proposition (e.g., competitive pay and career growth opportunities).

ACCENTURE'S HEADCOUNT AND GROWTH

0

50,000

100,000

150,000

200,000

250,000

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

Hea

dcou

nt

-15.0%

-5.0%

5.0%

15.0%

25.0%

35.0%H

eadc

ount

Gro

wth

Y/Y

Tota l Headcount Globa Del ivery Network (GDN)Tota l headcount % Δ y/y GDN headcount % Δ y/y

SOURCE: ACCENTURE AND TBR

TBR


TBR



Accenture’s well-developed resources and capabilities allow the company to gain business growth opportunities

Opportunities• Target growth opportunities in emerging markets • Increasing demand for analytics to support

Accenture’s growth• Expansion of Global Delivery Network in Latin

America due to demand for services delivered from the region

• Stabilizing consulting/SI demand can help Accenture’s consulting & SI business stabilize in the long run

• Growth potential of cloud computing can help Accenture gain traction

Weaknesses• Price competitiveness is limited in

commoditized/sole sourcing deals – unlike in large/complex engagements

• Recruiting and training costs tied to hiring as well as wage and salary increases used as means to hold off rising attrition are having a temporary negative impact on cost of services

Strengths• Seamless transition of executive power in CEO

succession (new CEO as of January 1, 2011)• Broad Global Delivery Network and developed

presence in low-cost locations • Leverage of a standard framework for building

and delivering services• Alliance relationships with 150+ partners • Strong vertical market focus and expertise• Core competency to attract, hire, train, deploy

and retain skilled talent • Accenture’s Technology Labs turn technology

into business results

Threats• Slow and uneven economic recovery in Europe

may challenge Accenture’s near-term performance in the region

• Indian vendors are becoming more active in business consulting and remote management ITO

• Competition from other MNCs (e.g., IBM, HP/EDS, etc.) and European firms for top clients

• Competition for lower-cost labor by other MNCs, as well as Indian and European vendors, may challenge hiring in India and the Philippines

Corporate SWOT Analysis


TBR



Accenture’s new CEO will not change the company’s strategy and outlookTBR Strength Assessment: Seamless transition of executive power in CEO succession

Accenture is appointing CEOs

with a long history with the company (25+

years) and allowing former CEOs to retain the Chairman

position to help guide the

company to future business

success

Pierre Nanterme, formerly head of Accenture’s Financial Services group, is Accenture’s new CEO as of January 1, 2011. TBR believes the CEO change is business as usual and Accenture has taken necessary steps to ensure a smooth transition, keeping its future strategy intact.

• Accenture announced the change in its top leadership in October 2010. The goal was to provide enough time for the new CEO to get up to speed before stepping into his new role.

• Former CEO Bill Green, who has served as Accenture’s CEO since 2004, will remain Chairman of the Board and will act as an advisor to Nanterme and help guide strategic planning.

• TBR believes this executive enables Accenture to smoothly transition executive power to Nanterme, who has been chief executive of the financial services group since 2007 and has been with the company for 27 years.

• Nanterme brings knowledge and experience in financial services and leadership development capabilities, which will contribute to Accenture’s strategy of strengthening its human capital and developing its global service delivery capabilities.

• While Accenture laid out its FY11 growth and margin targets in September, prior to the CEO change, the new CEO is fully committed to achieving the goals the company has set for its new fiscal year. Nanterme will find the set financial goals achievable given the signs of global economic improvement, and the strength of the Accenture operation he is inheriting.


Accenture’s Last Three CEOs• 1989 – Accenture established as Andersen Consulting.• Nov. 1999 – Joe W. Forehand named CEO (26 years with the

company at that time).• Sept. 1, 2004 – Bill Green became CEO (28 years with the

company at that time); Forehand retained the position of Chairman until Sept. 2006, when it was transferred to Green.

• Jan. 1, 2011 – Pierre Nanterme became CEO (27 years with Accenture); Green retained the position of Chairman.

Sour

ce: A

ccen

ture

and

TBR

.

• Nanterme held the fort in the financial services vertical during harsh economic times and worked toward the gradual improvement in the vertical’s performance as the global financial services industry stabilized. IP asset-based solutions that help service delivery automation and provide benefits on the profitability side in financial services can be expanded to other areas.


TBR



Development of skills and talent is a key aspect of Accenture’s businessTBR Strength Assessment: Core competency to attract, hire, train, deploy and retain skilled talent

Accenture is investing in training and

employee development to

ensure its people have the right skills and are provided with career

growth opportunities

People are Accenture’s key asset and the company has developed a competency, which is a key strength in TBR’s view, to attract, train and retain professionals with the necessary skills to serve its clients. Accenture is also extending its training skills to educate people around the world as part of its corporate citizenship, thus developing potential employees.

• Accenture is investing in technical, functional, industry, managerial and leadership skill development and training. The company also has a performance management system and career philosophy that rewards individual performance and teamwork.

• Such initiatives help Accenture establish a dedicated and educated workforce that is committed to the company’s values and business development strategies.

• In addition, employee development helps Accenture curb attrition, which in 4Q10 reached 15%, up from 12% in 4Q09, but declined 200 basis points sequentially from 17% in 3Q10.

• Accenture considers people its greatest asset and TBR believes this is the right attitude, as the provision of consulting, SI and outsourcing (e.g., BPO) is largely a people-focused effort.

• Accenture is also recognized in industry rankings as a preferred company to work for. The Vault’s Tech Consulting Firm Rankings 2011: Best to Work For placed Accenture at No. 3 for Formal Training and No. 4 for Promotions, outpacing competitors like IBM and Capgemini.

• In May 2009, Accenture launched its global “Skills-to-Succeed” corporate citizenship initiative, which allows people to be educated with skills to get a job or build a business. Accenture’s goal is to educate 250,000 people around the globe by 2015, and the company will contribute $100 million in the next three years in global and local giving to support the initiative.


• Recruiting and training costs tied to hiring, in addition to wage and salary increases used to hold off rising attrition, are having a temporary negative impact on cost of services (rose to 67.8% of net revenue in 4Q10 from 66.9% in 4Q09). We expect this trend to remain in the next several quarters as hiring continues.

FISCAL YEAR (IN $ THOUSANDS*) FY07 FY08 FY09 FY10

Training costs $775,768 $985,929 $794,218 $591,229

% of total revenue 3.9% 4.2% 3.7% 2.7%

Training costs per employee $4,575 $5,278 $4,483 $2,900

* In $ thousands except for training costs per employee

SOURCE: ACCENTURE AND TBR.

ACCENTURE'S TRAINING COSTS TBR


TBR



TBR projects continued top-line advancement during FY11 as strength across segments fuels an uptick in revenue growth

Revenue Performance Revenue & Growth Drivers

4Q10 Net Revenue: $6.05 billion, 12.3% YTY

• Net revenue reached $6.05 billion in 4Q10, improving 12.3% year-to-year and 11.5% sequentially. This was the third consecutive quarter in which Accenture saw year-to-year revenue growth after five quarters of revenue declines in 2009 and 1Q10.

• Improving demand across consulting & SI, areas previously challenged, and stable demand in outsourcing are contributing to revenue growth.

Revenue and Growth Outlook• TBR forecasts Accenture’s revenue will be close to

$5.73 billion in 1Q11, growing 10.8% year-to-year.• TBR believes that after a bout of weakness in the firm’s

consulting & SI segment over the past few quarters, stronger indications of improvement in the business line will help Accenture yield a fourth consecutive quarter of TTM revenue growth, helping the company grow to $22.8 billion in 1Q11 on a TTM basis from $20.8 billion in 1Q10.

• Revenue generation in both Accenture’s consulting & SI and outsourcing segments will continue to improve in all geographic markets through 2011 as the company continues to broaden its client base and vertical expertise.

Financial Model Strategy

ACCENTURE'S TRAILING 12-MONTH REVENUE

$23.7 $23.4

$22.4 $21.6 $20.9 $20.8 $21.3 $21.6 $22.2 $22.8

$14

$16

$18

$20

$22

$24

$26

1Q08-4Q08

2Q08-1Q09

3Q08-2Q09

4Q08-3Q09

1Q09-4Q09

2Q09-1Q10

3Q09-2Q10

4Q09-3Q10

1Q10-4Q10

2Q10-1Q11Est

In $

Bill

ions

SOURCE: ACCENTURE FINANCIALS AND TBR

TBR

FY09 FY10

ACCENTURE'S NET REVENUE, GROWTH AND PROJECTIONS

$26.1

$5.4 $5.2 $5.6 $5.4 $6.0 $5.7

$22.2$24.0

5.3%10.8% 8.7%8.0%6.1%

-1.7%

-10.6%

12.3%8.3%

$0

$5

$10

$15

$20

$25

$30

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11Est.

CY10 CY11Est.

CY12Est.

In $

Bill

ions

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

Net

Rev

enue

Gro

wth

Yea

r-to

-yea

r

Net Revenue Revenue Growth Year-to-year

NOTE: Annual revenue and projections are for calendar 2010, 2011 and 2012, respectively.SOURCE: ACCENTURE AND TBR

TBR


TBR



Improving demand, which drives higher training and subcontractor costs, is putting pressure on Accenture’s Cost of Sales

Cost & Margin Performance Cost Structure & Margin Performance

4Q10 Operating Expenses: $1.12 billion

Cost of Services, Gross Profit

Accenture’s cost of services (COS) for 4Q10 totaled $4,101 million, up 14% from 4Q09. COS as a percentage of revenues increased 90 basis points to 67.8% from 66.9% in 4Q09. COS rose due to higher subcontractor and training costs tied to improved demand and compensation increases.

SG&A

Sales and marketing grew to 12.1% of revenues from 11.6% in 4Q09 due to investment in business development and sales. G&A fell 130 basis points 6.4% of revenue to 7.7% in 4Q09 due to active management of cost structure (drove an 80-basis-point decline) and reduction in bad debt reserve (drove a 50-basis-point decline).

Operating Margin and Outlook

• Operating margin decreased 20 basis points year-to-year to 13.7% in 4Q10, dragged down by a decline in profitability in Health & Public Service and Resources.

• Accenture remains focused on keeping operating margins in the 13.6% to 13.7% range, which we believe will be an achievable goal given cost-management and efficiency techniques.


OPERATING EXPENSES AS A PERCENTAGE OF SALES

0.1% 0.1% 0.0% 0.0% 0.0%

12.0%

0.1%

7.7% 8.0% 7.4% 8.0% 6.4% 7.4%

11.6% 12.0% 12.8%12.9%

12.1%

-3.0%

2.0%

7.0%

12.0%

17.0%

22.0%

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.Reorganization cost (benefi t) Genera l and Adminis trativeSales and Marketing


TBR

ACCENTURE'S GROSS AND OPERATING PROFIT AND PROJECTIONS

33.1% 32.7% 34.7% 34.0%32.2% 32.9% 33.4% 34.3% 35.0%

13.9% 12.6% 14.4% 13.2% 13.7% 13.5% 13.5% 13.7% 14.0%

0%

10%

20%

30%

40%

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11Est.

CY10 CY11Est.

CY12Est.

Gro

ss a

nd O

pera

ting

Mar

gin

Gross Margin Operati ng Margin

NOTE: Annual gross and operating profit and projections are for calendar 2009, 2010 and 2011.SOURCE: TBR AND ACCENTURE

TBR


TBR



Consulting & SI revenue is now growing with strength in management and IT consulting, while outsourcing services remain in demand

Service Line Performance Service Line Drivers

Service Line Financials

Consulting & SI

• Consulting & SI revenue increased 14.3% year-to-year (as reported) in 4Q10, growing in all verticals except for Health & Public Service due to declines in public services in EMEA and Americas.

• In management consulting, clients are hiring to achieve operational excellence along with growth. In technology consulting, clients are looking to drive down IT costs through virtualization and cloud computing, rationalize legacy operations and improve security. The SI business is showing increasing strength. We expect Accenture will continue to proactively and successfully manage the shift of SI work to lower-cost locations.

Outsourcing

• Outsourcing revenue rose 9.5% year-to-year (as reported) to $2.48 billion from $2.26 billion in 4Q09.

• Outsourcing revenues reflected demand from clients around cost-effective BPO solutions centered around finance and accounting and procurement, as well as demand for industry-specific processes.


ACCENTURE'S SERVICE LINE REVENUE AND PROFITABILITY

58.0% 56.6% 57.9% 57.1% 59.0% 57.0%

42.0% 43.4% 42.1% 42.9% 41.0% 43.0%

14.8% 14.8% 15.0% 14.5% 15.0% 15.1%

12.6% 9.7% 13.6% 11.4% 11.8% 11.4%0%

15%

30%

45%

60%

75%

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.

% o

f Net

Rev

enue

Consulting & SI Revenue Outsourcing RevenueConsulting & SI Operating Margin* Outsourcing Operating Margin*

SOURCE: TBR AND ACCENTURE * Operating margin is a TBR estimate

TBR

$3,120 $2,932 $3,225 $3,094 $3,568 $3,270

$2,262 $2,244 $2,346 $2,326 $2,478 $2,467

0%

25%

50%

75%

100%

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.

% o

f Net

Rev

enue

ACCENTURE'S SERVICE LINE REVENUE (IN $ MILLIONS)

Outsourcing Consulting & Systems IntegrationSOURCE: TBR AND ACCENTURE

TBR


TBR



The financial services vertical will see further growth, while the public sector will see temporary challenges due to restricted spending in Europe

Operating Group Performance Operating Group Drivers

Operating Group Financials

CHT

Communications & High-Tech increased 10.8% year-to-year. Consulting grew due to demand for strategic sourcing, globalization, cost take-out, and customer acquisition and retention; outsourcing grew with focus on cost take-out and operational efficiency.

Financial Services (FS)

FS grew 17.9% year-to-year in 4Q10 with record growth in Consulting; clients looked for services in post-merger integration, banking and insurance replatforming, risk and regulatory compliance and transformation.

Health & Public Service (HPS)

HPS declined 1.6% year-to-year due to uncertainty and challenges in the public sector, largely in Europe, which we expect to continue during the rest of FY11. Accenture saw growth in Consulting in Health in the Americas due to strong investment in healthcare improvement.

ProductsProducts revenue increased 15.9% year-to-year, driven by strong growth in both consulting and outsourcing across all geographies.

Resources Resources rose 17.0% year-to-year due to double-digit growth in Consulting and Outsourcing.

*On Sept. 1, 2009, Accenture formed the Health & Public Service operating group by combining various healthcare-related components of its Products operating group with its Public Service operating group. Prior-period amounts have been reclassified.


ACCENTURE'S OPERATING GROUP PROFITABLITY

3.0%5.0%7.0%9.0%

11.0%13.0%15.0%17.0%19.0%

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.

% o

f Net

Rev

enue

Communications & High-Tech Financia l ServicesHealth & Publ ic Service* Products*Resources


TBR

$1.20 $1.21 $1.31 $1.27 $1.40 $1.34

$1.16 $1.11 $1.18 $1.16 $1.28 $1.22

$1.10 $1.08 $1.15 $1.12 $1.30 $1.24

$0.96 $0.93 $1.00 $1.01 $1.13 $1.08 $0.95 $0.85 $0.93 $0.86 $0.93 $0.85

0%

25%

50%

75%

100%

4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.

% o

f Net

Rev

enue

ACCENTURE'S REVENUE BY OPERATING GROUP(IN $ BILLIONS)

Other Health & Public Service*Resources Financial ServicesCommunications & High-Tech Products*


TBR


TBR



Investments in industry-specific offerings with new technology content allow Accenture to broaden its client base and geographic coverage

Service Line Strategies

Accenture has three growth platforms which emphasize providing high performance to clients. Subject matter experts within the growth platforms work together with Accenture’s operating groups (verticals) to develop and deliver solutions.

• Management consulting growth platform – Grow management consulting services by placing strong emphasis on operational excellence with a cost-containment value proposition to increase bookings.

• Technology growth platform – Further extend leadership in systems integration and technology services.

• BPO growth platform – Speed up BPO growth with an integrated BPO organization that delivers industry-specific and cross-industry BPO services with a transformational value scheme (i.e., combining management consulting with BPO capabilities).

4Q10 New Service Announcements:• Accenture launched a new large scale

biometric identity matching solution called Accenture’s Large Scale Matching Solution. It helps public service agencies accurately validate the identity of individuals, whether for identifying potential national security threats or for refining the delivery of government assistance programs and social services to citizens. The solution allows timely and accurate identification while decreasing the expenses of identity assurance.

IO: Accenture’s ability to manage work remotely is generating strong demand for infrastructure outsourcing as clients become increasingly attuned to transferring assets due to lighter capital costs (cost optimization is key priority).BPO: High demand for cost-efficient solutions in finance and accounting, and procurement and industry-specific processes was reflected by a solid booking trend produced by Accenture in 4Q10, specifically in Europe and North America. AO: Demand for AO is generated by the strong value proposition offered to clients. AO is often bundled with other outsourcing services. Clients are moving up the value chain into optimized application portfolios and business performance, creating opportunities for Accenture.

Outsourcing42.9%

Consulting &SI

57.1%BPO, 41%

IO, 8%

AO, 51%

4Q10 Services Stack

SOURCE: TBR ESTIMATES.

Go-to-Market & Product Strategies


TBR



Go-to-Market & Product Strategies

Key 4Q10 Customer Wins• Hilton Worldwide (U.S.) – Multiyear; application

development and support services • National Water Company (Saudi Arabia) – Design

and deploy IT solution for water and waste management

• Proton Holdings (Malaysia) – 21 months; ERP system

• Centers for Disease Control and Prevention (U.S.) – $3 billion ceiling, 10 years; ID/IQ contract for information management and IT infrastructure services

• U.S. Navy – $6.3 million, five years; engineering services (hardware and software maintenance)

• RSA (U.K.) – Three-year contract extension; provide development, implementation, maintenance services

Signings & Pipeline• Accenture’s total bookings rose 14.1% year-to-year to

$6.31 billion and grew 9.0% year-to-year to $25.8 billion on a TTM basis due to improving demand, positioning the company for top-line growth during the rest of FY11.

• Consulting bookings, which were hit hard in the challenging economy, continue to grow, up 6.0% year-to-year in 4Q10. Management Consulting bookings were strong in Europe and in APAC. Accenture will see more wins in risk management and new market entry. Technology Consulting bookings were strong, and clients’ interest in innovation and flexibility is growing. SI bookings reached its highest level in nine quarters, rebounding well following the market turmoil.

• Outsourcing bookings increased 28.2% year-to-year but declined 13.7% sequentially. Accenture benefited from new client wins, as well as the extension of projects with existing clients.

• There may be some inconsistency in bookings growth between quarters (i.e., Outsourcing booking did not follow a smooth pattern); however, Accenture will see positive bookings performance in the near term. The firm’s improved offerings portfolio (refreshed core offerings coupled with new areas such as analytics, mobility, etc.) and its mix of cost improvement and growth enhancement offerings will continue to attract clients.

Accenture’s core, as well as its innovative offerings, will drive bookings growth ACCENTURE'S TTM NEW BOOKINGS AND Y/Y GROWTH

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11Est.

(In $

Mill

ions

)

-15%

-5%

5%

15%

25%

TTM

Boo

king

s Ye

ar-t

o-ye

ar G

row

th

TTM Consulting TTM OutsourcingYear-to-Year Growth


TBR


TBR



Accenture’s investment in sales effectiveness and business development strategies will continue to boost signings and revenue in the long runTBR Assessment of Sales Strategy: Accenture’s strengthened sales initiatives will boost revenue growth

Accenture’s investment in sales

initiatives and business

development activities for both its core business and new service

areas (e.g., cloud, analytics, smart

grid, etc.) are generating results

and will bring further success in

the long run

Accenture’s global sales organization is comprised of a traditional sales channel supported by a small direct sales channel

• Traditional sales channel – This channel is responsible for the bulk of Accenture’s sales. The sales function is tasked to Accenture’s partners, associate partners and managers (or senior executives) – 4,500 people globally. Each client has account executives responsible for the relationship, business development, etc.

• Direct sales channel – This small, direct sales force covers new clients with whom Accenture does not yet work, and is comprised of:

• Equally small and direct sales team in BPO that targets SMBs. • Direct sales team in applications outsourcing (~80 sales directors globally) and ITO

that works with client partner senior executives.• Third-party advisors. These advisors work with clients to score deals for Accenture and

constitute only a minor portion of the company’s sales force.Customer structure – Accenture’s “diamond” clients showcase the company’s focus on relationship building

• Accenture defines its “diamond,” or “foundation” clients as those having $100+ million, long-term, established accounts that have a strong relationship with the company. The number of Accenture diamond clients across the globe reached 100 at the end of FY10.

• Approximately 20 of Accenture’s diamond clients are located in the United Kingdom, a key region for Accenture’s business. Accenture also has diamond clients in emerging markets (e.g., one diamond client in China, four in Brazil), showcasing its ability to expand geographically and diversify its revenue.

• Accenture focuses on building strong relationships with diamond/foundation clients, and the company generates a large share of its business from these clients.

Go-to-Market & Services Strategies


TBR



Pricing is stabilizing across markets; however, pricing increases are not expected to be significant in the near-term

• TBR believes the close of 2010 brought about a stabilization of pricing capabilities for vendors across geographies. TBR forecasts that during 2011, the U.S. will experience moderate pricing increases. Pockets of pricing power in EMEA will emerge (e.g., in countries that are experiencing more rapid economic recovery such as Germany), but the broader region will stay in a flat-line state, forcing Accenture to keep its finger on the market’s pulse for smaller pockets of pricing traction. APAC markets will fare similarly to the U.S. for 2011, with opportunities to gain pricing traction becoming more evident throughout the year.

• In Systems Integration, Accenture continues to transition its work into a greater offshore mix through its global delivery network. TBR believes the tradeoff between stronger margins and pricing pressure will be a key challenge in this segment.

• However, TBR believes competitive wage environments in Accenture’s primary sourcing regions (e.g., India) will allow for the pass-through of some cost increases as market demand flourishes for globally integrated service delivery commands.The hourly billing rates above are based on Accenture’s General

Purpose Commercial IT Equipment, Software and Services government contract with the U.S. General Services Administration, launched in 2010.

• Accenture’s pricing environment remains competitive. TBR sees this continuing into the foreseeable future as heightened competition from Indian vendors and stronger market conditions lead to aggressive pricing tactics from competitors. TBR expects Accenture to experience moderate pricing traction through 2011, albeit at an uneven pace among its primary markets.

Go-to-Market & Services Strategies

TITLE 1 2 3 4

Business Integration Analyst $91 $100 $114 $123

Business Integration Consultant $111 $125 $139 $153

Business Integration Manager $157 $177 $183 $202

Business Integration Senior Manager $236 $274 $303

Business Integration Associate Partner $316 $347 $378 $417

Business Integration Partner $494 N/A N/A N/A

Client Financial Management Assistant $64 N/A N/A N/A

Client Financial Management Analyst $81 $91 N/A N/A

Client Financial Management Specialist $110 $121 N/A N/A

Client Financial Management Manager $157 N/A N/A N/A

Client Financial Management Senior Manager $231 N/A N/A N/A

Client Financial Management Associate Partner $340 N/A N/A

Executive Assistant $64 $73 $83 N/ANOTE: Net rates (discount deducted).

SOURCE: TBR AND GENERAL SERVICES ADMINISTRATION.

ACCENTURE'S U.S. GOVERNMENT HOURLY RATES(05/10-05/11)

SKILL LEVEL/EXPERIENCE

TBR


TBR



Alliances are a strong contributor to Accenture’s competitiveness and diverse set of service offerings

TBR Assessment of Alliance Strategy: Alliances are a key element of Accenture’s strategy

TBR expects Accenture will further expand its partnership

base of technology

developers to broaden its

offerings with high-growth

potential and vertical-specific

solutions

• Accenture’s internal organization, the Accenture Alliances Group, is responsible for forming alliances and partnerships to provide the company with new channels, incremental revenue streams and access to emerging technologies. Accenture Alliances has grown significantly during the last four to five years, from a group of 15 people managing 12 alliances to a global organization of more than 300 professionals.

• Alliances and partners are centered around the company’s client service business (technology, outsourcing, strategy, etc.). The company has an alliance network of more than 150 partners. Major partners include Avanade, Microsoft, IBM, Dell, Oracle, SAP, Symantec, Cisco Systems, HP, EMC and Alcatel-Lucent.

Accenture’s alliance announcements during 4Q10 • Accenture and Universal Music Group (UMG) formed an alliance in 4Q10 following a successful

two-year collaboration to develop and deploy Accenture’s Digital Supply Chain Platform.• Accenture and NHN Corporation signed an agreement to work together to develop mobile

applications for smartphones.• Accenture and BMC Software expanded their relationship in 4Q10; they will work together to

develop and implement BMC Business Service Management, as well as consulting and integrating services to BMC’s Professional Services organization.

TBR Assessment• Alliances will continue to be vital, allowing Accenture to provide services and solutions in high-

growth areas. TBR believes Accenture will continue this trend as a means to gain global traction for its services.

NOTE: SEE APPENDIX OF THIS REPORT FOR A FULL LISTING AND ANALYSIS OF ACCENTURE’S ALLIANCES.

Alliance & Acquisition Strategies


TBR



Successful acquisition integration supports Accenture’s organic revenue growthTBR Assessment of Acquisition Strategy: Leverage tuck-in acquisitions to drive inorganic growth

Accenture will remain steadfast in supporting organic growth via small-

scale strategic acquisitions

through FY11

Accenture’s acquisition strategy during the past several years has been to make relatively small-scale, tuck-in acquisitions to fill gaps in its offerings and expand its capabilities and global reach.

• Accenture’s main goal is to grow its business organically; however, the company supplements organic growth with acquisitions when it finds the right transaction in terms of price and capabilities that will be added.

• Accenture’s M&A focus is to acquire companies without disrupting its overall business direction and performance, while at the same time augmenting its existing resources and capabilities.

• TBR believes Accenture will be looking to make more small-scale acquisitions, given its ability to fund such transactions as well as its history and expertise in integrating companies.

Accenture’s Acquisition Activity in 4Q10 (Fiscal 1Q11)

Company Acquisition Date Acquisition Synergies Estimated No.

of Employees

CAS Computer Anwendungs-und

Systemberatung AGNovember

2010CRM and mobility software for the consumer products industry. Augments Accenture’s industry-specific software offerings.

230

Mogensis November 2010

Strengthens Accenture’s embedded software services capabilities. N/A

Knowledge Rules, Inc. November 2010

Enhances Accenture’s Pegasystems capabilities in key U.S. and European markets. N/A

Ariba’s Sourcing Services & BPO Assets

November 2010

Purchased for $51 million, strengthening Accenture’s existing sourcing and procurement consulting and outsourcing capabilities

160

SO

UR

CE:

AC

CEN

TU

RE A

ND

TB

R

Alliance & Acquisition Strategies


TBR



Aside from pockets of uncertainty in some verticals and geographies, Accenture will see more growth in the majority of its business

Geo Key Changes & Drivers Revenue, YTY Growth and Contribution Keep on the Radar

U.S./ Americas

Revenue in the Americas increased 18.1% year-to-year, attributed to significant growth within the United States, Brazil, and Canada. In the U.S., Accenture’s public service vertical saw growth in Outsourcing with the U.S. federal sector.

A shifting trend toward more strategic consulting offerings rather than tactical solutions in Accenture’s management consulting segment may ignite further backlog of higher-value solutions from an invigorated U.S. economy.

EMEA

EMEA’s revenue grew 3.4% year-to-year, driven mainly by growth in France as well as Italy, the U.K, Germany, Sweden, Finland and Switzerland, but partially offset by declines in the Netherlands and Ireland.

Economic issues and tight public spending remain, but Accenture is optimistic about its business. Some local economies are growing and clients (e.g., large global European companies) are investing in IT projects.

APAC

Although APAC is Accenture’s smallest revenue contributor, it has sustained positive year-to-year growth momentum, up 28.4% in 4Q10, driven by significant growth in Japan and growth in Australia, Singapore, India and South Korea.

Accenture continues to improve its competitive position in APAC. Accenture experienced strong revenue growth in APAC and has been working with clients on global expansion.

Emerging & Developed

Markets

Accenture is focused on expanding key emerging markets (BRIC, South Korea and Mexico) and in other fast-growing markets. In addition, Accenture is looking to gain traction in several developed but underpenetrated markets to diversify its revenue base.

Americas$2.63B, up

18.1% YTY;

43.6% of revenue

EMEA$2.64B,

down3.4% YTY;43.6% of

revenue

APAC$775M, up

28.4% YTY;

12.8% of revenu

e

Geographic Analysis


TBR



Resource Management Strategy

Strategy & Investments• Slightly alleviate utilization through hiring (utilization

dropped to 87% in 4Q10 from 88% in 4Q09) and ability to quickly train and deploy people to work on projects.

• Continue hiring in FY11, similar to the hiring levels in FY10; the goal is to hire at least 64,000 people across its GDN.

• Promoting its “Skills-to-Succeed Program,” a corporate citizenship initiative which provides people around the globe with business-oriented skills. Accenture will educate 250,000 people by 2015 and is investing $100 million.

• Opening an R&D and innovation center in Dublin; the center is aimed at creating predictive analytics solutions for customers worldwide and will add 100 jobs in the next four years.

• Expanding its operations in the Philippines with three new facilities in Manila and in Cebu; the plan is to employ 25,000 people by end of FY11, up from the current total of 20,000.

• Accenture’s total headcount grew 19.8% year-to-year to 210,951 in 4Q10 (beginning of FY11) and 3.8% sequentially, driven by increased hiring activities as the company focused on capturing demand. In 4Q10, Consulting and Solutions headcount (i.e., pure Consulting, SI and Technology employees) rose 27.2% year-to-year to 130,983, and GDN headcount increased 26.6% year-to-year to 120,000.

• Strong focus on training allowed Accenture to quickly deploy new employees, generating benefits from its new hires and operating at relatively high utilization levels (87.0% in 4Q10).

SO

UR

CE:

TB

R A

ND

AC

CEN

TU

RE.

Accenture will continue to invest in the expansion of its global delivery capabilities, achieving top- and bottom-line benefits

ACCENTURE'S HEADCOUNT

118,451

74,700

92,500

101,363

0

50,000

100,000

150,000

200,000

4Q09 4Q10

Calendar Quarter

Tota

l Hea

dcou

nt Nearshore &Offshore Headcount

Other GDN locationsand onshore

Tota l headcount: 210951 (+19.8% YTY)

TBR

4Q09 4Q10

Revenue per Employee 117,704$ 112,948$ ↓Operating Income per Employee 14,477$ 15,230$ ↑Utilization 88.0% 87.0% ↓Turnover 12.0% 15.0% ↑

Accenture's Efficiency Metrics (In $) TBR


TBR




A new CEO is taking the helm in 2011, but keeping management structure in place; former CEO remains Chairman of the Board

Organizational ChangesAccenture is making changes to its top leadership team, with a new CEO to lead the company. The CEO change is business as usual and will not change Accenture’s strategic direction and financial goals.

• Accenture appointed Pierre Nanterme as its Chief Executive Officer. Previously, Nanterme was Group Chief Executive for Financials Services. Former CEO William (Bill) D. Green will continue serving as Chairman of the Board.

• Richard Lumb, who previously acted as the senior managing director of Accenture’s financial services operating unit in Europe, Africa and Latin America, will replace Nanterme and serve as Group Chief Executive for Financial Services.

Pamela J. CraigChief Financial

Officer

Kevin M. CampbellGroup Chief Executive

Technology

Mark FosterGroup Chief Executive

Management Consulting &

Global Markets

GROWTH PLATFORMS

Martin I. ColeGroup Chief Executive

Communications

Sander van’t NoordendeGroup Chief Executive

Resources

Gianfransco CasatiGroup Chief

ExecutiveProducts

Stephen J. Rohleder Group Chief ExecutiveHealth & Public Service

OPERATING GROUPS

Richard LumbGroup Chief Executive

Financial Services

Johan (Jo) Deblaere Chief Operating Officer

Karl - Heinz FloetherChief Strategy & Corporate

Development Officer

Pierre NantermeChief Executive Officer

Roxanne TaylorChief Marketing &

Communications Officer

Julie Spellman SweetGeneral Counsel, Secretary& Chief Compliance Officer

.

Jill B. SmartChief Human Resources

Officer

CORPORATE FUNCTIONS

KC McClureInvestor RelationsManaging Director

Thomas PikeChief Risk Officer

Adrian LajthaChief Leadership Officer

David C. ThomlinsonSr. Managing DirectorGeographic Strategy &

Operations

GEOGRAPHIES AND GLOBAL DELIVERY

Harsh ManglikIndia Chairman

& Managing Director

TBR

Michael J. SalvinoGroup Chief Executive

BPO

Robert N. FrerichsGroup Chief Executive

North America

Donald J. RippertChief Technology

Officer & Managing Director of Technology

Resource Management Strategy


TBR



Accenture will continue to address demand and expand its resources and capabilities to realize further business growth

Future Outlook

1

1

TBR Outlook

Financial

Go-to-Market

• During FY11, TBR expects Accenture to gain traction across the majority of its verticals due to its vertical-specific expertise and offerings. The healthcare sector is showing strong demand and Accenture is actively investing to help improve healthcare around the globe. The Financial Services vertical is also seeing increased demand, especially in consulting, and Accenture will continue to see growth. Uncertainty with regard to financing in the public sector in the U.S., U.K. and several other countries in Europe is impacting demand and will pose challenges.

• Accenture’s investment in sales and go-to-market (strengthened core business with new offerings, invested in new business initiatives with high-growth potential such as analytics, cloud computing, etc.) will help the company take advantage of opportunities that arise.

Resource Management

• Accenture will continue hiring through FY11, at a level similar to the 64,000 hired during FY10, and will manage utilization and attrition.

• Accenture will continue to focus on increasing its offshore leverage and will further develop its Global Delivery Network.

• With the recovery in the IT services market, we expect Accenture’s top-line growth to improve through FY11. Though the economic picture remains mixed as countries are emerging from the downturn at different rates, more clients are ready to invest in projects. Accenture’s ability to adjust its portfolio to demand positions it for long-term gains.

• TBR expects Accenture to reach its FY11 operating margin targets (13.6% to 13.7%) as the company continues its cost and operational improvement and increased offshoring measures.

Future Outlook

4Q10 PSBQ VENDOR POSITION AND PROJECTION: ACCENTURE

0.002.004.006.008.00

10.00

4% 6% 8% 10% 12%

Quarterly Revenue Growth Year-to-year

TBR

Ove

rall

Scor

e

PSBQ Tra i l ing 12-Month Average Growth = 9.6%

1Q11 Est.

SOURCE: ACCENTURE AND TBR ESTIMATES

TBR

3Q10

4Q10


TBR



Appendix – Income StatementIncome Statement

ACCENTUREConsolidated Statement of Income(in $ Thousands Except Share Data)Calendar Period Nov. '09 Feb. '10 May '10 Aug. '10 Nov. '10 Feb. '11 Nov. '09 Feb. '10 May '10 Aug. '10 Nov. '10 Feb. '11 Nov. '09 Feb. '10 May '10 Aug. '10 Nov. '10 Feb. '11CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est.Revenues 5,747,687$ 5,537,823$ 5,975,495$ 5,833,073$ 6,478,193$ 6,146,984$ 106.8% 107.0% 107.3% 107.6% 107.2% 107.2% -11.2% -2.1% 7.9% 6.0% 12.7% 11.0%

Reimbursements 365,155 361,385 404,478 412,492 432,543 410,611 6.8% 7.0% 7.3% 7.6% 7.2% 7.2% -19.1% -7.6% 3.1% 14.7% 18.5% 13.6%

Net Sales (Revenues before Reimbursements) 5,382,532$ 5,176,438$ 5,571,017$ 5,420,581$ 6,045,650$ 5,736,372$ 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% -10.6% -1.7% 8.3% 5.3% 12.3% 10.8%

Cost of Services 3,598,578 3,486,107 3,639,367 3,575,769 4,101,170 3,849,106 66.9% 67.3% 65.3% 66.0% 67.8% 67.1% -12.9% -4.3% 4.7% 2.6% 14.0% 10.4%

Gross Profit 1,783,954 1,690,331 1,931,650 1,844,812 1,944,480 1,887,266 33.1% 32.7% 34.7% 34.0% 32.2% 32.9% -5.5% 4.2% 15.6% 11.1% 9.0% 11.7%

Sales and Marketing 621,860 623,386 714,487 698,325 731,471 688,365 11.6% 12.0% 12.8% 12.9% 12.1% 12.0% 10.4% 20.1% 36.1% 26.5% 17.6% 10.4%

General and Administrative 412,121 413,335 410,057 432,793 385,726 422,961 7.7% 8.0% 7.4% 8.0% 6.4% 7.4% -18.7% -5.8% -0.1% 0.0% -6.4% 2.3%

Selling, General and Administrative Expenses 1,033,981 1,036,721 1,124,544 1,131,118 1,117,197 1,111,326 19.2% 20.0% 20.2% 20.9% 18.5% 19.4% -3.4% 8.2% 20.2% 14.9% 8.0% 7.2%

Reorganization cost (benefit) 3,565 2,637 3,276 60 348 100 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 14.8% 120.3% 3.1% -98.3% -90.2% -96.2%

Operating Expenses 1,037,546 1,039,358 1,127,820 1,131,178 1,117,545 1,111,426 19.3% 20.1% 20.2% 20.9% 18.5% 19.4% -3.3% 10.0% 20.2% -8.8% 7.7% 6.9%

Operating Income 746,408 650,973 803,830 713,634 826,935 775,841 13.9% 12.6% 14.4% 13.2% 13.7% 13.5% -8.4% -3.9% 9.8% 70.1% 10.8% 19.2%

Interest Income and Other, Net 8,697 (11,583) (550) 2,960 17,693 3,157 0.2% -0.2% 0.0% 0.1% 0.3% 0.1% 239.1% -153.9% -103.5% 2.2% 103.4% 127.3%

Income before Taxes 755,105 639,390 803,280 716,594 844,628 778,998 14.0% 12.4% 14.4% 13.2% 14.0% 13.6% -6.6% -8.5% 7.4% 69.6% 11.9% 21.8%

Provisions for Taxes 230,307 177,511 239,761 206,331 239,072 226,846 4.3% 3.4% 4.3% 3.8% 4.0% 4.0% 7.0% -9.7% 13.5% 77.1% 3.8% 27.8%

Net Income before Minority Interest 524,798 461,879 563,519 510,263 605,556 552,152 9.8% 8.9% 10.1% 9.4% 10.0% 9.6% -11.5% -8.1% 5.0% 66.8% 15.4% 19.5%

Minority Interest (79,981) (62,119) (72,922) (64,781) (70,842) (72,987) -1.5% -1.2% -1.3% -1.2% -1.2% -1.3% 29.4% 31.7% 21.2% -26.3% 11.4% -17.5%

Net Income 444,817$ 399,760$ 490,597$ 445,482$ 534,714$ 479,165$ 8.3% 7.7% 8.8% 8.2% 8.8% 8.4% -7.3% -2.8% 10.5% 74.9% 20.2% 19.9%

Net Earnings per Share of Common Stock 0.67$ 0.60$ 0.73$ 0.66$ 0.81$ n/a

Common Shares Outstanding 773,696,423 768,453,497 766,597,090 758,133,742 742,961,409 n/a

SOURCE: ACCENTURE

AS A PERCENTAGE OF REVENUE YEAR-TO-YEAR CHANGE


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Appendix – Balance SheetBalance SheetACCENTUREConsolidated Balance Sheets (in $ Thousands)

CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11ASSETSCurrent Assets

Cash and Equivalents 4,000,063 4,114,751 4,312,111 4,838,292 4,160,452

Short-Term Investments 5,056 7,323 8,094 2,987 3,164

Accounts Receivable 2,503,615 2,470,983 2,350,493 2,534,598 2,846,561

Unbilled Services 1,291,199 1,118,919 1,165,857 1,127,827 1,354,854

Other (Deferred Income Taxes, etc.) 1,129,378 1,062,476 1,006,835 1,059,921 1,104,679

Total Current Assets 8,929,311 8,774,452 8,843,390 9,563,625 9,469,710

Property, Plant, Equip. (Net of Dep.) 685,052 646,727 625,534 659,569 673,697

Other Non-Current Assets 2,570,456 2,468,909 2,448,734 2,612,059 2,725,467

Total Assets 12,184,819$ 11,890,088$ 11,917,658$ 12,835,253$ 12,868,874$

LIABILITIES AND EQUITYCurrent Liabilities

Short-Term Borrowings 1,734$ 206$ 573$ 143$ 332$

Accounts Payable 689,769 683,632 683,094 885,328 824,354

Employee Compensation and Benefits 2,425,854 2,137,896 2,409,544 2,683,492 2,691,323

Deferred Revenues 1,747,083 1,796,394 1,688,069 1,772,833 1,769,439

Other Current Liabilities 1,312,729 1,191,091 1,047,774 1,225,808 1,161,403 Total Current Liabilities 6,177,169$ 5,809,219$ 5,829,054$ 6,567,604$ 6,446,851$

LT Debt, Net of Current 855 199 198 1,445 -

Other Non-current Liabilities 2,692,918 2,639,767 2,627,006 2,991,481 3,110,913 Minority Interest - - - - -

Total Liabilities 8,870,942$ 8,449,185$ 8,456,258$ 9,560,530$ 9,557,764$ Total Stockholders' Equity 3,313,877$ 3,440,903$ 3,461,400$ 3,274,723$ 3,311,110$

Total Liabilities & Equity 12,184,819$ 11,890,088$ 11,917,658$ 12,835,253$ 12,868,874$

FINANCIAL RATIOSDays Sales Outstanding 41.86 42.96 37.97 42.08 42.38

Fixed Asset Turnover 31.06 31.09 35.03 33.74 36.28

Days Cash Outstanding 66.97 71.67 69.79 80.38 61.98

Total Asset Turnover 1.76 1.72 1.87 1.75 1.88

Debt/Asset Ratio 0.73 0.71 0.71 0.74 0.74

Current Ratio 1.45 1.51 1.52 1.46 1.47

Return on Assets 13.5% 13.1% 13.2% 14.6% 15.2%

Return on Equity 55.1% 49.9% 48.0% 52.8% 55.7%SOURCE: ACCENTURE

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Appendix- Financial Models

CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est.NET REVENUE (IN $ MILLIONS)Consulting & Systems Integration 3,120$ 2,932$ 3,225$ 3,094$ 3,568$ 3,270$

Outsourcing 2,262$ 2,244$ 2,346$ 2,326$ 2,478$ 2,467$

Total Net Revenue 5,383$ 5,176$ 5,571$ 5,421$ 6,046$ 5,736$

AS A PERCENTAGE OF REVENUEConsulting & Systems Integration 58.0% 56.6% 57.9% 57.1% 59.0% 57.0%

Outsourcing 42.0% 43.4% 42.1% 42.9% 41.0% 43.0%

YEAR-TO-YEAR CHANGE (IN U.S. DOLLARS)Consulting & Systems Integration -14.7% -3.2% 9.1% 6.2% 14.3% 11.5%

Outsourcing -4.2% 0.4% 7.1% 4.2% 9.5% 9.9%

Total Net Revenue -10.6% -1.7% 8.3% 5.3% 12.3% 10.8%

SEQUENTIAL CHANGEConsulting & Systems Integration 7.1% -6.0% 10.0% -4.0% 15.3% -8.4%

Outsourcing 1.3% -0.8% 4.6% -0.9% 6.5% -0.4%

Total Net Revenue 4.6% -3.8% 7.6% -2.7% 11.5% -5.1%

OPERATING INCOME (IN $ MILLIONS)Consulting & Systems Integration 460$ 432$ 484$ 449$ 535$ 494$

Outsourcing 286$ 218$ 320$ 265$ 292$ 282$

Total Operating Income 746$ 651$ 804$ 714$ 827$ 776$

ESTIMATED OPERATING MARGINConsulting & Systems Integration 14.8% 14.8% 15.0% 14.5% 15.0% 15.1%

Outsourcing 12.6% 9.7% 13.6% 11.4% 11.8% 11.4%

Total Operating Margin 13.9% 12.6% 14.4% 13.2% 13.7% 13.5%SOURCE: TBR ESTIMATES AND ACCENTURE

ACCENTURE'S SERVICE LINE REVENUE AND ESTIMATED PROFITABILITY TBR


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* On September 1, 2009, Accenture formed the Health & Public Service operating group by combining various health care-related components of its Products operating group with its Public Service operating group. Prior-period amounts have been reclassified.


CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est.NET REVENUE (IN $ THOUSANDS)Communications & High-Tech 1,159,313$ 1,110,147$ 1,178,355$ 1,164,475$ 1,284,476$ 1,218,979$

Financial Services 1,104,037$ 1,076,879$ 1,149,863$ 1,115,259$ 1,301,118$ 1,241,925$

Health & Public Service* 946,512$ 851,563$ 926,618$ 856,109$ 931,600$ 848,983$

Products* 1,204,060$ 1,205,575$ 1,307,903$ 1,267,809$ 1,396,041$ 1,339,109$

Resources 964,163$ 929,309$ 1,004,056$ 1,013,513$ 1,128,317$ 1,084,174$

Other 4,447$ 2,965$ 4,222$ 3,416$ 4,098$ 3,202$

Total 5,382,532$ 5,176,438$ 5,571,017$ 5,420,581$ 6,045,650$ 5,736,372$

AS A PERCENTAGE OF REVENUECommunications & High-Tech 21.5% 21.4% 21.2% 21.5% 21.2% 21.3%

Financial Services 20.5% 20.8% 20.6% 20.6% 21.5% 21.7%

Health & Public Service* 17.6% 16.5% 16.6% 15.8% 15.4% 14.8%

Products* 22.4% 23.3% 23.5% 23.4% 23.1% 23.3%

Resources 17.9% 18.0% 18.0% 18.7% 18.7% 18.9%

Other 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%

YEAR-TO-YEAR CHANGECommunications & High-Tech -15.0% -7.0% 2.0% 4.2% 10.8% 9.8%

Financial Services -10.8% 3.5% 12.0% 9.6% 17.9% 15.3%

Health & Public Service* 0.3% -2.8% 2.8% -9.0% -1.6% -0.3%

Products* -13.1% 0.8% 13.7% 13.0% 15.9% 11.1%

Resources -10.7% -2.5% 11.0% 7.5% 17.0% 16.7%

Other -55.9% -57.8% -25.0% -44.0% -7.8% 8.0%

SEQUENTIAL CHANGECommunications & High-Tech 3.7% -4.2% 6.1% -1.2% 10.3% -5.1%

Financial Services 8.5% -2.5% 6.8% -3.0% 16.7% -4.5%

Health & Public Service* 0.6% -10.0% 8.8% -7.6% 8.8% -8.9%

Products* 7.4% 0.1% 8.5% -3.1% 10.1% -4.1%

Resources 2.3% -3.6% 8.0% 0.9% 11.3% -3.9%

Other -27.1% -33.3% 42.4% -19.1% 20.0% -21.9%

OPERATING MARGINCommunications & High-Tech 12.5% 12.8% 14.3% 13.8% 15.0% 14.0%

Financial Services 17.7% 17.2% 17.5% 17.2% 18.8% 18.2%

Health & Public Service* 14.3% 4.3% 8.0% 4.7% 6.2% 6.8%

Products* 9.6% 11.7% 14.1% 11.9% 11.3% 11.8%

Resources 16.2% 15.7% 17.5% 16.8% 15.4% 15.0%

OPERATING INCOMECommunications & High-Tech 144,380$ 141,633$ 168,166$ 160,598$ 193,241$ 170,657$

Financial Services 194,867$ 185,015$ 201,235$ 191,382$ 244,581$ 226,334$

Health & Public Service* 134,962$ 36,799$ 74,530$ 40,219$ 57,783$ 57,731$

Products* 116,034$ 141,209$ 183,780$ 151,129$ 157,261$ 158,015$

Resources 156,165$ 146,317$ 176,119$ 170,306$ 174,069$ 162,626$

Total 746,408$ 650,973$ 803,830$ 713,634$ 826,935$ 775,363$ SOURCE: TBR AND ACCENTURE

ACCENTURE'S OPERATING UNITS REVENUE AND INCOME TBR


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CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est.NET REVENUE (IN $ MILLIONS)Americas 2,229$ 2,203$ 2,513$ 2,520$ 2,633$ 2,553$ EMEA 2,550$ 2,386$ 2,433$ 2,213$ 2,638$ 2,524$ Asia Pacific 603$ 587$ 625$ 688$ 775$ 660$ Total 5,383$ 5,176$ 5,571$ 5,421$ 6,046$ 5,736$

AS A PERCENTAGE OF REVENUEAmericas 41.4% 42.6% 45.1% 46.5% 43.6% 44.5%EMEA 47.4% 46.1% 43.7% 40.8% 43.6% 44.0%Asia Pacific 11.2% 11.3% 11.2% 12.7% 12.8% 11.5%

YEAR-TO-YEAR CHANGE (IN U.S. DOLLARS)Americas -13.5% -4.1% 11.0% 11.3% 18.1% 15.9%EMEA -11.2% -1.2% 3.9% -2.7% 3.4% 5.8%Asia Pacific 5.8% 6.0% 15.9% 13.1% 28.4% 12.4%

SEQUENTIAL CHANGEAmericas -1.5% -1.2% 14.1% 0.3% 4.5% -3.1%EMEA 12.1% -6.4% 1.9% -9.0% 19.2% -4.3%Asia Pacific -0.8% -2.7% 6.5% 10.1% 12.7% -14.8%SOURCE: TBR AND ACCENTURE

ACCENTURE'S GEOGRAPHIC REVENUE TBR


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CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.Net Revenue 5,382,532$ 5,176,438$ 5,571,017$ 5,420,581$ 6,045,650$ 5,736,372$

Operating Expenses 1,037,546$ 1,039,358$ 1,127,820$ 1,131,178$ 1,117,545$ 1,111,426$

Sales & Marketing Expense 621,860$ 623,386$ 714,487$ 698,325$ 731,471$ 688,365$

General and Administrative Expense 412,121$ 413,335$ 410,057$ 432,793$ 385,726$ 422,961$

R&D Expense 84,595$ 81,356$ 87,557$ 85,193$ 95,017$ 69,514$

Restructuring Costs 3,565$ 2,637$ 3,276$ 60$ 348$ 100$

SALES AND MARKETING EXPENSE BREAKOUT (IN $ THOUSANDS)Sales Expense 588,371$ 591,040$ 680,373$ 665,555$ 696,013$ 661,626$

Marketing Spending 33,489$ 32,346$ 34,114$ 32,770$ 35,458$ 26,739$

Advertising 19,874$ 19,195$ 20,245$ 19,447$ 21,689$ 15,868$

Total Sales and Marketing Expense 621,860$ 623,386$ 714,487$ 698,325$ 731,471$ 688,365$

SPENDING AS A PERCENTAGE OF REVENUE Total Operating Expenses 19.3% 20.1% 20.2% 20.9% 18.5% 19.4%

Sales and Marketing Expense 11.6% 12.0% 12.8% 12.9% 12.1% 12.0%

Sales Expense 10.9% 11.4% 12.2% 12.3% 11.5% 11.5%

Marketing Spending 0.6% 0.6% 0.6% 0.6% 0.6% 0.5%

Advertising 0.37% 0.37% 0.36% 0.36% 0.36% 0.28%

General and Administrative 7.7% 8.0% 7.4% 8.0% 6.4% 7.4%

Restructuring Costs 0.1% 0.1% 0.1% 0.0% 0.0% 0.0%

CORPORATEWIDE HEADCOUNTSales 4,650 4,500 4,500 4,460 4,460 4,460

General and Administrative 13,357 13,398 13,732 14,154 14,342 16,448

Total Employees 176,063 181,436 190,442 203,860 210,951 218,000SOURCE: TBR ESTIMATES AND ACCENTURE FINANCIALS

ACCENTURE OPERATING EXPENSE MODEL (IN $ THOUSANDS) TBR


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CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11Consulting 46,053 46,149 48,415 50,181 51,955

Solutions 56,905 62,085 65,911 75,791 79,028

Total Consulting & Solutions 102,958 108,234 114,326 125,972 130,983

Services 59,748 59,804 62,384 63,734 65,626

Total Billable 162,706 168,038 176,710 189,706 196,609

Enterprise 13,357 13,398 13,732 14,154 14,342

Total Headcount 176,063 181,436 190,442 203,860 210,951


ACCENTURE'S HEADCOUNT BREAKDOWN TBR


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Financial Strategy GraphsAppendix-Graphs

CURRENT RATIO

1.45 1.51 1.52 1.46 1.47

0.00

0.50

1.00

1.50

2.00

4Q09 1Q10 2Q10 3Q10 4Q10

ACCENTURE PSBQ AVERAGE


TBR

DEBT/ASSET RATIO

0.73 0.71 0.71 0.74 0.74

0.00

0.20

0.40

0.60

0.80

1.00

4Q09 1Q10 2Q10 3Q10 4Q10



TBR

13.9%12.6%

14.4% 13.2% 13.7%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

4Q09 1Q10 2Q10 3Q10 4Q10

OPERATING MARGIN



TBR


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Financial Strategy Graphs

Appendix – GraphsAppendix-Graphs

13.5% 13.1% 13.2%14.6% 15.2%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

4Q09 1Q10 2Q10 3Q10 4Q10

RETURN ON ASSETS



TBR

55.1% 49.9% 48.0% 52.8% 55.7%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

4Q09 1Q10 2Q10 3Q10 4Q10

RETURN ON EQUITY



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Go-to-Market GraphsAppendix-Graphs

BACKLOG/REVENUE RATIO

2.43 2.49 2.43 2.49 2.49

0.00

1.00

2.00

3.00

4Q09 1Q10 2Q10 3Q10 4Q10



TBR

DAYS SALES OUTSTANDING

41.86 42.9637.97

42.08 42.38

0.00

15.00

30.00

45.00

60.00

75.00

4Q09 1Q10 2Q10 3Q10 4Q10

Num

ber o

f Day

s



TBR

$5,383

$5,176 $5,571 $5,421 $6,046

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

4Q09 1Q10 2Q10 3Q10 4Q10

In $

Mil

lions

REVENUE



TBR

-10.6%

-1.7%

8.3% 8.3%12.3%

-30.0%-20.0%-10.0%

0.0%10.0%20.0%30.0%

4Q09 1Q10 2Q10 3Q10 4Q10

REVENUE GROWTH



TBR


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Resource Management GraphsAppendix-Graphs

GROSS MARGIN

33.1% 32.7% 34.7% 34.0% 32.2%

0.0%

10.0%

20.0%

30.0%

40.0%

4Q09 1Q10 2Q10 3Q10 4Q10



TBR

OPERATING EXPENSES AS A PERCENTAGE OF SALES

19.3% 20.1% 20.2% 20.9% 18.5%

0.0%

5.0%

10.0%

15.0%20.0%

25.0%

30.0%

4Q09 1Q10 2Q10 3Q10 4Q10



TBR

REVENUE PER EMPLOYEE

$117.7 $117.2 $117.4 $114.7 $112.9

$0.0

$50.0

$100.0

$150.0

$200.0

4Q09 1Q10 2Q10 3Q10 4Q10

In $

Tho

usan

ds



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Resource Management GraphsAppendix-Graphs

UTILIZATION RATE

88% 88% 88% 86% 87%

0%

20%

40%

60%

80%

100%

4Q09 1Q10 2Q10 3Q10 4Q10



TBR

TURNOVER RATE

12% 15% 17% 17%15%

0%

5%

10%

15%

20%

4Q09 1Q10 2Q10 3Q10 4Q10



TBR

OPERATING INCOME PER EMPLOYEE

$14.5 $14.3 $14.5 $15.5 $15.2

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

4Q09 1Q10 2Q10 3Q10 4Q10

In $

Tho

usan

ds



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Accenture Recent Acquisitions

COMPANY ACQUISITION DATE ACQUISITION SYNERGIES

ESTIMATED NO. OF

EMPLOYEES

CAS Computer Anwendungs-und

Systemberatung AGNovember

2010CRM and mobility software for the consumer products industry. Augments Accenture’s industry-specific software offerings.

230

Mogensis November 2010

Strengthens Accenture’s embedded software services capabilities. N/A

Knowledge Rules, Inc.

November 2010

Enhances Accenture’s Pegasystems capabilities in key U.S. and European markets. N/A

Ariba’s Sourcing Services & BPO

AssetsNovember

2010Purchased for $51 million, strengthening Accenture’s existing sourcing and procurement consulting and outsourcing capabilities.

160

Acceria July 2010 Management consulting; complements Accenture’s automotive and industrial manufacturing capabilities. 30

CadenceQuest, Inc. June 2010 Enhance vertical analytics (CadenceQuest provides customer data and analytics for the retail sector). 35

RiskControl (Brazil) February 2010

Risk consulting and software capabilities; allows Accenture to expand in the local Brazilian market. N/A

Nokia’s Symbian Professional Svcs.

OperationsOctober 2009 Consulting services for mobile operating systems;

embedded software services for mobile devices. 165

SOURCE: TBR ESTIMATES AND ACCENTURE

Appendix-Tables


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Accenture’s Portfolio of Services

Appendix – Tables

ACCENTURE MANAGEMENT CONSULTING:

TECHNOLOGY: OUTSOURCING:

Service Lines• Finance & Performance

Management• Process & Innovation

Performance• Talent & Organization

Performance• Strategy• Customer Relationship

Management• Supply Chain Management• Risk Management

Systems Integration Service Lines• Enterprise Solutions and Enterprise

Resource Planning• Industry and Functional Solutions• Information Management Services• Cloud Computing• Custom Solutions• Software as a Service (SaaS)• Mobility Solutions• Microsoft Solutions

Technology Consulting Service Lines• Application Portfolio Optimization

and Renewal• Enterprise Architecture• IT Strategy and Transformation• Infrastructure Consulting• IT Security Consulting• Digital Solutions• Research & Development

Service Lines• Application Outsourcing• Infrastructure Outsourcing• Business Process

Outsourcing (BPO)• Bundled Outsourcing

ACCENTURE’S BPO BUSINESSES:

Accenture’s industry-specific BPO businesses:• Accenture Health Administration Services• Accenture Insurance Services• Navitaire, Inc.• Accenture Utilities Services

Accenture Custom Services

Accenture’s function-specific BPO businesses that serve clients across industries are:

• HR BPO• Learning BPO• Finance and Accounting BPO• Procurement BPO

Appendix-Tables

• Customer Contact BPO• Supply Chain BPO• Engineering Services


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Accenture Quarterly SigningsCLIENT DATE DESCRIPTION YEARS CONTRACT

VALUE4Q10

Nagaland State Government

IndiaDecember

2010

Accenture will implement and manage the state’s public service portal, state service delivery gateway and e-forms to help facilitate the delivery of services offered by multiple government departments.

42 Months N/A

Hilton WorldwideUnited States

December 2010

Accenture will provide Hilton Worldwide with application development and support services for client’s property management systems and websites.

multiyear N/A

National Water Company

Saudi ArabiaDecember

2010

Accenture will provide a suite of Oracle-based solutions, maintenance and support and change management services to modernize the client’s waste water service operations in Riyadh and Jeddah.

N/A N/A

Ace Private Risk Services

United StatesDecember

2010Accenture's claims management application (Accenture Claim Components) was selected to support ACE‘s claims management operation in the U.S.

N/A N/A

KF Shared Services AB

Sweden November

2010Accenture will provide BPO services in finance and accounting in support of improving KF Shared Services AB’s cost-effectiveness and delivery capabilities.

6 N/A

Proton HoldingsMalaysia

November 2010

Accenture will expand and improve the client’s enterprise resource planning (ERP) system. 21 months N/A

Centers for Disease Control and Prevention United States

November 2010

ID/IQ contract, Accenture was selected as the prime contractor to provide information management and IT infrastructure services.

10$3 billion and

$1 billion ceilings

Appendix-Tables


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Accenture Quarterly Signings

CLIENT DATE DESCRIPTION YEARS CONTRACT VALUE

U.S. NavyUnited States

November 2010

Accenture will provide engineering services covering hardware and software maintenance to help the Navy modernize its ships with mission-critical systems.

5 $6.3 million

American WaterUnited States

November 2010

Accenture will assist in the development of a strategy for the company's business transformation program. N/A N/A

Allianz Life Insurance Company

United States

November 2010

Allianz Life Insurance Company selected Accenture to license and implement the Accenture Life Insurance Platform to enhance product development and improve customer services.

N/A N/A

SEC SERVIZIItaly

November 2010

Accenture will develop and implement a new risk calculation engine to help the bank consortium’s clients and members assess the probability of loan defaults.

N/A N/A

Olympus Memory WorksJapan

November 2010

Accenture will provide ongoing support for strategic planning, systems integration, development using a public cloud computing environment and BPO services.

N/A N/A

RSAUnited Kingdom

October 2010

Contract extension in which Accenture will continue to provide development, implementation and ongoing maintenance services for RSA’s IT applications.

Additional 3 N/A

Caja de Ahorros del Mediterráneo

SpainOctober

2010Accenture will implement its Alnova Financial Solutions core banking platform to support the bank’s operations in Spain.

N/A N/A

Appendix-Tables


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VALUE

Singapore’s Energy Market

Authority October

2010

Along with ST Electronics, Accenture has been selected to design and implement Phase 1 of the client’s Intelligent Energy System pilot project (advanced metering infrastructure and smart grid).

N/A N/A

Takeda Pharmaceuticals North AmericaUnited States

October 2010

Accenture will provide application and infrastructure outsourcing services including development, testing and management services, as well as end-user computing and network management.

Multi-year N/A

Zurich Financial Services Group

SwitzerlandOctober

2010Zurich Financial Services will apply Accenture’s underwriting solution to support its international insurance operations.

N/A N/A

U.S. Social Security

AdministrationUnited States

October 2010

Accenture won a bid as the prime contractor under the Information Technology Support Services Contract (ITSSC), which will enable Accenture to apply innovative applications in streamlining the SSA’s service delivery capabilities.

1 year base period, 6

additional 1-year

options

$2.8 billion

3Q10

Baltimore Gas and Electric (BGE)

United StatesSeptember

2010

BGE teamed with Accenture and Oracle to implement a smart meter network for its 1.2 million customers. Accenture will provide SI (design, build and manage), project management support and change management.

N/A N/A

Appendix-Tables


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VALUE

Singapore Energy Market Authority

(EMA)Singapore

September 2010

Accenture has been selected by the EMA to design and implement Singapore’s Intelligent Energy System project. This system is intended to enable households to monitor energy consumption and reduce overall usage.

2 Multimillion

DnB NORNorway

September 2010

Accenture signed an agreement to develop, implement and manage the financial services group’s life and pension insurance applications.

5 N/A

National Australia Group

AustraliaSeptember

2010

Accenture has extended its contract with the subsidiary of National Australia Bank for application development and management services to a range of the bank’s enterprise and customer applications.

3 N/A

U.S. Defense Logistics Agency

(DLA)United States

September 2010

Accenture was awarded a contract by the DLA to integrate the group’s energy supply chain into its Enterprise Business System program, intended to streamline the DLA’s logistics and distribution platform.

4 $73 million

Stanford Hospital & Clinics

United StatesSeptember

2010Accenture has been selected to work with Stanford to improve clinical processes and develop new analytic tools for patient-centric solutions.

7 N/A

Educational Testing Service

(ETS)United States

August 2010

Accenture has extended its contract with the ETS to continue offering BPO services in end-to-end supply chain management. 7 $160 million

Norsk Hydro ASANorway

August 2010

Accenture signed an application outsourcing contract with the client to provide support and maintenance services to two of Hydro’s SAP systems.

3 N/A

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University of North Texas System (UNTS)

United StatesAugust 2010

Selected to assist in the planning phase for development and implementation of an IT and HR/payroll shared service for UNTS across campuses and offices.

Multi-year N/A

Singapore Ministry of Health

Singapore August 2010

Accenture was awarded a contract to deploy the National Electronic Health Record system for Singapore, which is designed to improve healthcare quality and lower costs.

N/A N/A

Unique Identification

Authority of India (UIDAI)

India

July 2010Accenture will implement the biometric identification system, a component of the “Aadhaar” program designed to offer Indian residents with a unique ID number.

2 N/A

Sun Life Assurance Company of Canada

CanadaJuly 2010

Provide application development and management services in support of the Sun Life Financial group subsidiary’s operations in Canada.

Multi-year N/A

Taxation and Customs Union

Directorate GeneralBelgium

July 2010

Accenture was awarded a contract to provide IT systems management and development for the European Commission’s CUST-DEV2 program, a platform for an eCustoms system for use by 2013. Accenture will manage the legacy customs system and specifications for the new platform.

3 N/A

Statoil Norway July 2010 Statoil awarded Accenture a BPO contract to manage

Accounts Payable processes for the energy firm. 5 N/A

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2Q10AspreaUnited

KingdomJune 2010

Applications outsourcing (development and management) and infrastructure outsourcing (service desk, workplace, network and telephony, and datacenter service).

8 N/A

IRSUnited States June 2010

The IRS has awarded Accenture a one-year contract to create a system for online registration and renewal to improve the quality and efficiency of paid tax return preparers.

1-year base order (four 1-year options)

N/A

HenkelUnited States June 2010 Accenture will provide application management services to

Henkel’s operations in North America. 6 N/A

Hong Kong Housing

AuthorityChina

June 2010Accenture will provide its services to design, develop and maintain a new enterprise resource management (ERP) system to improve the efficiency of the processes for financial management in two phases.

8 $30 million

U.S. NavyUnited States June 2010 Accenture has been awarded a contract to provide

financial management services to the U.S. Navy.1-year base

order (four 1-year options)

Up to $182 million

University of Michigan

United StatesMay 2010

Accenture will work with the University of Michigan on a comprehensive assessment of IT at a campus level and how it is distributed and provided across campus. They will be striving to improve interoperability of applications and achieve more efficient products, infrastructure and services.

N/A N/A

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VALUE

Media Prima Berhad

MalaysiaMay 2010

Accenture has helped Media Prima update its legacy broadcast system with state-of-the-art technology, which has led to better time to market, higher productivity and more efficient operations.

N/A N/A

SICREDIBrazil May 2010 Accenture will provide SICREDI, a credit union in Brazil,

with IT support and systems development services. N/A N/A

Anadolu SigortaTurkey May 2010

Accenture will license, implement and maintain the Accenture Claims Components Solution (a claims management application) for the Turkish property and casualty insurer.

N/A N/A

Ministry of EducationSingapore

April 2010Accenture will update Singapore schools’ web-based administrative system by enhancing the existing business processes and providing application maintenance.

3 N/A

XL InsuranceUnited States April 2010

Implement a centralized global claims management system and update core claims-processing technology in order to improve customer service and reduce costs.

N/A N/A

Electrolux IT Solutions AB

SwedenApril 2010

Accenture has been awarded a contract to update Electrolux's current portfolio of enterprise applications and provide application development and management services.

Multiyear N/A

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Hanwha GroupSouth Korea April 2010

Accenture will provide technical assistance (application management) to the Korean Bank. The two companies will also partner to market IT solutions and services to other banks, insurers and other financial service companies throughout South Korea.

8 $80 million

Telefonica Group

ArgentinaApril 2010

Accenture will manage the development and maintenance of applications related to consumer systems, billing and collections across 17 markets in Latin America and Europe.

N/A N/A

NordeaDenmark April 2010

An application outsourcing contract to develop and maintain applications that support the bank’s customer websites (30 websites).

5 N/A

U.S. NavyUnited States April 2010

Accenture National Security Services will provide accounting and financial management services to the Navy as part of its financial improvement program.

1 base plus 4 one-year

options

$40.6 billion base; $181.8 billion total

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Accenture’s Strategic Alliances by Client Service Business APPLICATION INFRASTRUCTURE:Avanade BEA/OracleEMC/DocumentumMicrosoft

BUSINESS OPERATIONS:Business ObjectsCitrix SystemsComverseEpitome SystemsInterwovenManagement ControlsVignette

CUSTOMER RELATIONSHIP MANAGEMENT:Siebel Systems (part of Oracle)KXEN

DATA WAREHOUSING:Acxiom Teradata OracleInformaticaSymantec

ENTERPRISE INTEGRATION:BEA/OracleMicrosoft TIBCO webMethodsAT&T Business Services

ENTERPRISE MANAGEMENT:Oracle PeopleSoft (part of Oracle)SAPSun MicrosystemsAprimo

FINANCE MANAGEMENT AND ENTERPRISE PERFORMANCE MANAGEMENT:Cognos/IBMCallidus Software

HUMAN RESOURCE MANAGEMENT:PeopleSoft HR (part of Oracle)SAP HRSiebel Employee Relationship Management (part of Oracle)Advantage Interactive Corporation

PLATFORM:EMCHP Sun MicrosystemsCisco SystemsUnica

SUPPLY CHAIN MANAGEMENT:Ariba Aspen Technology PeopleSoft (part of Oracle)SAP

OTHER:Reuters GroupMercury/HPDaonFast Search & Transfer (FAST)SASDellGenesys

IBM Hardware and Software TechnologyIntecOpen Text Telcordia TechnologiesVendavoXign

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TBR’s Showcase of Major Accenture Alliances

COMPANY SCOPE OF PARTNERSHIP

Oracle • Oracle’s Fusion Middleware has been integrated into the Accenture Communications Solutions suite. The

partnership targets the telecommunications industry, allowing Oracle the opportunity to prepackage its solutions for telecom customers while Accenture provides support from a systems integration perspective.

SAP

• Since 2003, SAP and Accenture have been jointly developing, deploying, supporting and selling software products and services for banks and insurance companies worldwide. Initially, the joint portfolio consisted of the companies’ banking and insurance software products, which cover business functions such as insurance claims management, insurance policy administration, core banking operations and risk management.

• SAP and Accenture have assigned approximately 800 people to the combined development effort. The IT experts are located in Germany, Spain and the United States. Revenue is split according to services purchased by the customer.

Microsoft/Avanade

• Since the 2000 announcement of the Microsoft and Accenture (then Andersen Consulting) global alliance and the formation of a joint venture – Avanade – to deliver enterprise solutions on the Microsoft platform, including Windows 2000 Server, TBR believes the global alliance has been capitalizing on the unique assets of Accenture, Avanade and Microsoft.

• The alliance combined scalable enterprise software from Microsoft, Avanade’s deep Microsoft based skills ‑focused on technology infrastructure optimization and application development and integration, and the industry-specific business and technology expertise of Accenture consultants.

• Accenture Customer Relationship Management Solutions for Siebel on Microsoft.NET is a good example of the joint solutions the alliance has been offering the marketplace. The solutions take advantage of the Microsoft platform’s scalability and are efficient for Siebel applications. CRM solutions also benefit from the lower total cost of ownership provided by reduced hardware acquisition fees and overall lower operating costs.

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Physical Infrastructure and Worldwide Locations

Appendix – Tables

ACCENTURE’S LOCATIONS

AMERICAS

Buenos Aires, ArgentinaCuritiba, BrazilNiagara Region, CanadaToronto, Canada Bogotá, Colombia

Rio de Janeiro, BrazilCalgary, CanadaMississauga, CanadaToronto West, CanadaMexico City, Mexico

Sao Paulo, BrazilEdmonton, CanadaMontreal, CanadaVancouver, CanadaMonterrey, Mexico

Brasilia, BrazilFredericton, CanadaOttawa, CanadaSantiago, ChileCaracas, Venezuela

THE UNITED STATES

PhoenixSan FranciscoWilmington, Del.Tampa Bay/ St. Petersburg, Fla.Kansas City, Kan.Reston, Va.PittsburgFlorham Park, N.J.Raleigh, N.C.Philadelphia

Los AngelesSan Jose, Calif.Walnut Creek, Calif.Washington D.C.AtlantaBostonHoustonDetroitAlbany, N.Y.CincinnatiDallas

Sacramento, Calif.DenverMiamiChicagoMilwaukeeIrving, TexasMinneapolisNew York CityClevelandMurray Hill, N.J.

San DiegoHartford, Conn.Tallahassee, Fla.IndianapolisSeattleAustin, TexasSt. LouisCharlotte, N.C.Columbus, OhioSan Antonio

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Physical Infrastructure and Worldwide Locations

Appendix – Tables

ACCENTURE’S LOCATIONS

EMEA

Wien, AustriaHelsinki, FinlandFrankfurt, GermanyAthens, GreeceHerzelia, IsraelLuxembourgBergen, NorwayWarsaw, PolandMoscow, RussiaJohannesburg, South AfricaMadrid, SpainStockholm, SwedenLondon, United Kingdom

Brussels, BelgiumParis, FranceBerlin, GermanyBudapest, HungaryMilan, ItalyCasablanca, MoroccoLillehammer, NorwayLisbon, PortugalRiyadh, Saudi ArabiaPretoria, South AfricaSevilla, SpainZurich, SwitzerlandAberdeen, United KingdomManchester, United Kingdom

Prague, Czech RepublicLyon, FranceDusseldorf, GermanyDublin, IrelandRome, ItalyAmsterdam, The NetherlandsOslo, NorwayMoreira da Maia, PortugalBratislava, Slovak RepublicBarcelona, SpainGoteborg, SwedenIstanbul, TurkeyEdinburgh, United KingdomNewcastle, United Kingdom

Copenhagen, DenmarkSophia Antipolis, FranceMuenchen, GermanyBelfast, IrelandTurin, ItalyLagos, NigeriaStavanger, NorwayBucharest, RomaniaCape Town, South AfricaBilbao, SpainMalmo, SwedenAbu Dhabi, The United Arab Emirates

ASIA PACIFIC

Brisbane, AustraliaSydney, AustraliaGuangzhou, ChinaChennai, IndiaNew Delhi, IndiaTokyo, JapanSeoul, South Korea

Canberra, AustraliaWollongong, AustraliaHong Kong, ChinaGurgaon, IndiaNoida, IndiaKuala Lumpur, MalaysiaTaipei, Taiwan

Melbourne, AustraliaBeijing, ChinaShanghai, ChinaHyderabad, IndiaPune, IndiaManila, The PhilippinesBangkok, Thailand

Perth, AustraliaDalian, ChinaBangalore, IndiaMumbai, IndiaJakarta, IndonesiaSingapore, Singapore

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