Annual Report 2001

Where Ideas UnfoldA Year of Innovations Delivered

Structured to Deliver Innovation

Accenture delivers innovation to clients by help-ing them identify and capitalize on their mostimportant business and technology opportunitiesand by providing solutions to their most complexand critical challenges. Its professionals workwith clients of all sizes and have relationshipswith the world's leading companies and govern-ments. The company's size, scale, geographicreach and industry-specific capabilities enableAccenture to quickly deploy teams of profession-als anywhere in the world.

The company goes to market through five globalmarket units, as highlighted below, providingspecialized capabilities and solutions across 18industry groups worldwide. Supporting the globalmarket units and industry groups are eight servicelines, which bring Accenture's clients the marketknowledge, insights and technologies needed tosucceed in today's competitive arena.

Accenture forms affiliated companies that offerstrategically important capabilities that are besthandled outside of, but that are readily applicableto, Accenture's client service business. It entersinto alliances with leading companies and organi-zations whose capabilities complement its own,acknowledging that no company alone can meetthe demands of today's business environment.

With offices in 47 countries, Accenture leveragesits local presence and global scale and scope toachieve operational efficiencies through geographic operations.

The Corporate Development organization drivesAccenture's strategy development unit and its globalinvestments and venture capital operations.

Global Market Units

Communications & High TechCommunications—serving the world’s leading wire-line, wireless, cable and satellite communicationscompanies.

Electronics & High Tech—serving companies acrossall segments including aerospace and defense, soft-ware, consumer electronics, computers and officeequipment, semiconductors, telecommunicationsequipment, networks and storage, and contractmanufacturing.

Media & Entertainment—serving companies withinentertainment, publishing, printing and advertisingindustries that acquire, create, manage and distrib-ute content that informs, educates and entertains.

Financial ServicesBanking—serving retail, commercial and investmentbanks, diversified financials and securities compa-nies, investment management firms, depositories,exchanges, and online banks and brokerages.

Health Services—serving integrated health careproviders, health insurers, managed care organiza-tions, biotechnology and life sciences companies,and selected policy-making authorities.

Alliances and Affiliated Companies

Geographic Operations in 47 Countries

Communications &

High Tech

Corporate Development

Eight Service Lines

Market-facing Structure

Financial Services Government Products Resources

Insurance—serving property and casualty insurers,life insurers, reinsurance firms and insurance brokers.

GovernmentGovernment—serving national, state and local gov-ernments and related organizations focusing ondefense, revenue, immigration, human services,postal, education and electoral agencies.

ProductsAutomotive—serving auto manufacturers, suppliers,dealers, retailers and service providers, includingmotor vehicles and parts companies, and rubber andplastic products companies.

Consumer Goods & Services—serving food, bever-age, tobacco, household products, personal care,cosmetics and apparel companies.

Industrial Equipment—serving industrial and elec-trical equipment, construction, consumer durableand heavy equipment industries, including buildingmaterials, glass, industrial and farm equipmentcompanies.

Pharmaceuticals & Medical Products—servingcompanies within the pharmaceuticals, biotech-nology and medical products industries, and otherindustry-related companies.

Retail—serving retail clients including departmentstores, mass-merchandise and discount stores, specialty retailers, drug and convenience stores,supermarkets and quick-service restaurants.

Travel & Transportation—serving freight and passenger transportation, third-party logistics, hos-pitality, gaming, car rental and travel distributionindustries, including major airlines, hotels, railroads,package and freight delivery companies, and postalservices organizations.

ResourcesChemicals—serving a majority of the world's largestspecialty chemicals, industrial chemicals, petro-chemicals, polymers and plastics, gases and life science companies.

Energy—serving a wide range of companies in theoil and gas industry, including upstream, down-stream and oil services companies.

Forest Products—serving pulp and paper industries.

Metals & Mining—serving metals industry clientslocated in the world’s key mining regions.

Utilities—serving a wide range of companies affiliatedwith the utilities industry, as well as most of theworld’s largest electric, gas and water companies.

Global Service Lines

Customer Relationship ManagementCreating significantly higher levels of customer andbrand value.

Finance & Performance ManagementHelping chief financial officers create value throughworld-class finance capabilities.

Human PerformanceMaximizing workforce performance, including elec-tronically enabled human resources.

Solutions EngineeringCreating innovative, technology-enabled businesssolutions that deliver value to our clients.

Solutions Operations (Outsourcing)Adopting lean, efficient business models and drivingenterprise growth through outsourcing.

Strategy & Business ArchitectureDeveloping strategies that unlock new sources of value.

Supply Chain ManagementTransforming supply chains to improve customer service and drive additional revenues, significantlyreduce costs and increase asset productivity.

Technology Research & InnovationLeveraging new and emerging technologies todevelop the next wave of business solutions,through Accenture Technology Labs.

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It has been a big year for us…and an even biggeryear for many of our clients. Our 2001 annual report,our first as a public company, tells both stories—howAccenture has transformed itself over the past year,and how we are helping forward-looking companiesand organizations create and execute big ideas sothat they can transform their own businesses.We’ve illustrated how we help turn shared visionsinto reality through feature client stories beginningon page 15.

Accenture is the world’s leading management andtechnology services organization. Through its network of businesses approach—in which thecompany enhances its consulting and outsourcingexpertise through alliances, affiliated companiesand other capabilities—Accenture delivers innova-tions that help clients across all industries quicklyrealize their visions.

2001

Contents

Letter from the Chairman & CEO . . . . . . . . . . . . 8Feature Client Stories . . . . . . . . . . . . . . . . . . . . . 15Client Innovation Highlights . . . . . . . . . . . . . . . . 28Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . 30Board of Directors and Executive Committee . . . 32Countries and Key Locations . . . . . . . . . . . . . . . . 34Shareholder Information . . . . . . . . . . . . . . . . . . . 35About Accenture . . . . . . . . . . . . . . . . . . . . . . . . . 36

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Where did the idea come from? In a car, on a train, at a café outside of Cologne?No one quite remembers. But the thoughtis so stirring, it makes your heart race justconsidering the opportunity. So what doyou do now?

2

Companies market theirinnovations. Why can’tcountries?Civil Service College, Singapore

Yam Ah Mee, Chief Executive Officer

3

What if we could buildmore systems with lessinventory?Dell

Dick Hunter, Vice President, Americas Manufacturing Operations & Supply Chain Management

You can’t build the storeof the future with yesterday’s technology. Sainsbury’s

Robert Willett, Partner, Accenture4

5

Universal commercedemands a new universeof technology solutions.Visa

Sara Garrison, Senior Vice President, Network & Open Systems, Visa U.S.A.

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We can’t strike oil in theback office. Wait aminute, maybe we can.BP Exploration, North Sea

Anne Macdonald, Control Manager Business Support Services

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Great ideas abound in business.Great ideas abound in business. Unfoldingthose ideas—from fragile notions to robustreality—is the challenge. Accenture workswith clients to turn big ideas into evenbigger business opportunities. We helptransform revelations into results.

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Accenture is known for stretching industryboundaries and embracing change…and this pastyear was unlike any we have ever experienced.We capitalized on several big ideas that show-cased our entrepreneurial spirit and our abilityto innovate and execute. We helped our clientsrealize significant results, and we continued tobuild a strong capital structure to position usfor long-term growth. In true Accenture fashion,we accomplished our goals without missing abeat, and I could not be more proud of what wehave achieved. Let me share with you some ofthe highlights.

Not Just a New Name, a New CompanyOur theme this past year was transformation.With the successful resolution of our arbitrationon August 7, 2000, we became a fully indepen-dent organization. That launched our journey toreinvent our marketplace image to mirror ourown internal transformation. On January 1, 2001,we were proudly renamed, redefined and rebornas Accenture.

As part of this reinvention, we established a newvision to stretch our organization. We developed anew strategy to move beyond consulting, redefiningAccenture as a “network of businesses” to enhanceour consulting and outsourcing expertise throughalliances, affiliated companies and other capabilities.And we focused on executing our three strategicimperatives: achieving bold growth, fosteringa great place to work and enhancing ouroperational effectiveness.

To serve our clients and grow our business, welaunched several initiatives, including:

• Making investments in research anddevelopment and intellectual property to anticipate future waves of technological and business change.

• Developing proprietary offerings to create value within a given industry and accelerate top- and bottom-line growth.

• Creating assets, such as software and businessarchitectures, that enable us to implement market-ready solutions for our clients.

To Our Stakeholders:

Joe W. Forehand, Chairman & CEO

In the midst of our own transformation, the world’seconomies were shifting, and our resilience andresolve were put to the test. Yet in spite of thesluggish economy in several parts of the world, weended the year in a position of strength fromwhich we can face the uncertainties ahead.

For fiscal year 2001, our net revenues were $11.44billion, an increase of 17 percent in US dollars and23 percent in local currency over the previous fiscal year, well above the average for our industry.Our outsourcing business increased 20 percent to$1.98 billion, accounting for more than 17 percentof net revenues. Contributing to our strong fiscal-year performance was double-digit growth in allfive of our global market units and in our twolargest geographic areas. We also exceeded ouroperating income and earnings targets. Our proforma diluted earnings per share, excluding quar-terly net gains on investments and the related taxeffect, increased 26 percent for fiscal year 2001to $0.78 from $0.62.

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• Leveraging our industry expertise and business process skills to help clients transform fundamental business operations.

To accelerate the execution of our strategy andensure our position as a market leader, theAccenture partners voted overwhelmingly in April2001 to proceed with an initial public offering.After completing one of the most complex globalrestructurings ever and the SEC registration process,Accenture was listed on the New York StockExchange on July 19, 2001, under the symbol ACN.This long-term, strategic move has strengthenedour ability to deliver the highest-value solutions toour clients, and to provide competitive rewards tocontinue to motivate and attract the best people.

Delivering Results to Our ShareholdersOur transformation this year was ultimatelyfocused on one objective—achieving our perfor-mance goals by delivering superior client serviceand effectively running our business. We met thisobjective on all fronts.

Three strategic imperatives: achievingbold growth, fostering a great place to work and enhancing our operational effectiveness.

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In short, we have made a strong commitment toour long-term financial objectives:

• To grow revenues faster than the industry.• To expand our operating margin by 50 to

100 basis points per year in each of the nextthree years.

• To grow earnings per share at 15 percentor higher.

Delivering Results to Our ClientsAt Accenture, we believe that delivering value toour clients is the best way to deliver value to ourshareholders. In fact, we have achieved a compoundannual growth rate in our revenues of 18.9 percentsince 1989 because we have continuously reinventedourselves to remain relevant to our clients and themarketplace. Underlying everything we do is acommitment to helping our clients improve theirbusiness performance.

In the pages of this report, you will find the storiesof just a few of the many clients with whom we

are so proud to work. Some of these stories describetransformational outsourcing, an approach we pioneered. By combining outsourcing with elementsof our consulting business, we are helping clientschange their business functions to achieve rapid,sustainable performance improvement. This approachis a critical part of our intent to move beyondconsulting and take greater responsibility forhelping our clients achieve their business results.

One example is our multiyear business process out-sourcing agreement with Avaya Inc., a global leaderin networking solutions and services. Through thisrelationship, we are assuming management ofAvaya University, a global network of more than200 people who train Avaya employees, customersand business partners. Companies like Avaya areturning to Accenture to implement businessprocess outsourcing to drive demonstrable resultsand make an immediate impact on the bottomline. The outsourcing of Avaya University toAccenture enables Avaya to rapidly expand the

2000 2001

$0.62

$0.78

Pro Forma Diluted Earnings Per ShareExcluding Quarterly Net Gains on Investments and the Related Tax Effect

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reach and scale of its training to larger globalaudiences, while at the same time improving efficiency and managing costs within defined performance levels.

A Unique Force in the Marketplace Strategically, Accenture is well positioned forgrowth, with several factors underpinning our success. Let me focus on three. First is the power of our global scale and scope. More than 75,000Accenture people in 47 countries serve clientsacross 18 industry groups. We are unique in ourability to mobilize the right resources with the rightskills to bring ideas to life faster. Our eight servicelines function as our innovation engines, wherethe best tools, technology and expertise intersect.

Second, we are immensely proud of our deep andenduring client relationships, serving 86 of theFortune Global 100 and more than half of theFortune Global 500. Many of our clients havebeen with us for more than a decade, and we

consider these relationships the crown jewels ofour business.

Third, our network of businesses approach givesus the unique ability to leverage our alliances andbusiness relationships to deliver broad-based servicesto our clients. The real power of the network isthe synergy between our client service business—with its relationships and proven solutions—andour affiliates, alliances and Accenture TechnologyVentures, our venture capital business—with theiremphasis on new technologies and business models.We believe this approach provides us with a fundamental advantage in the marketplace.

A strong example of the network in action isour market-leading alliance with Microsoft andthe joint venture we established, Avanade. Bypartnering with Microsoft and Avanade, we bringa solutions-oriented approach to the rapidlyexpanding use of Microsoft technologies at theenterprise level.

$1,433$1,876

$2,256$2,833

$3,220$4,001

$4,942

$6,275

$8,215

$9,550 $9,752

$11,444

$2,583

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Worldwide RevenuesBefore ReimbursementsUS Dollars in MillionsYears Ending August 31

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Committed to Our PeopleAll of the elements above come together with ourpeople, and I am immensely proud of and gratefulto the people of Accenture for their relentlessfocus on client service, their creativity and theirability to embrace change. Our people deservespecial praise for their resilience this past year aswe faced the extremely difficult decision to reducethe size of our workforce due to the slowdown inthe global economy. Both the reductions in staffand our innovative FlexLeave sabbatical programwere necessary to help us improve operationalefficiency and balance our staffing levels with thedemand for our services.

Despite this tough decision, making Accenture agreat place to work remains a strategic priority.We have established metrics to hold leadershipaccountable for employee satisfaction and reten-tion, with the belief that having satisfied peopleleads to satisfied clients. Also, we continue totake bold steps in developing leaders who are

known for innovative thinking, entrepreneurship,and their ability to serve clients and lead people.Our belief in strong leadership is one reason wedoubled our partnership in September 2000,ensuring we put the best minds and leaders intothe marketplace to help deliver on our commit-ments to our clients and shareholders. Finally, weimplemented an employee equity grant programto give our people an ownership interest inAccenture on IPO day—a program we believe isunmatched in our industry. We also implementedan employee share purchase program in whichclose to 39 percent of Accenture employeesenrolled. According to our independent financialadvisors, this is one of the highest first-time participation rates they have ever seen.

Committed to GrowthLooking ahead, we have a continued focus onboth revenue growth and effective cost managementthat makes Accenture among the best-positionedcompanies in the services sector. However, we are

We are unique in our ability to mobilize the right resources with the right skills to bring ideas to life faster.

determination of our people will allow Accentureto manage through these uncertain times.

In closing, we at Accenture see no better timethan the present to help our clients and ourselvesexecute big ideas and innovate. We have the rightstrategy and structure to create an exciting newfuture…for our clients and business partners, ourpeople and our shareholders. We look forwardto another year of turning big ideas into evenbigger results.

Joe W. ForehandChairman & CEONovember 29, 2001

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not immune to market forces. In addition, theimpact of the September 11 terrorist attacks inthe United States and the responses to themmake it increasingly difficult to predict how thegeopolitical and economic climate will affect themarketplace overall.

That said, we do see Accenture as more resilientthan most of our competitors. Unlike pure consul-tancies, we provide a broad range of services andare better positioned to deliver large, multiyearbusiness transformation outsourcing solutions.We are also investing in our global network ofsolutions delivery centers—both in our major markets and offshore—to provide more price-competitive approaches in delivering technologyand outsourcing solutions to our clients.

So, despite the challenges that may lie ahead, Ibelieve the diverse nature of our business by bothindustry and geography, our commitment tobringing innovation to life for our clients, and the

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others who have been affected by the tragedies.Accenture people, families and friends donated morethan $1 million to the relief fund and Accenturedonated $1 million in matching contributions.

Additionally, Accenture provided a $1 million directcontribution to the Red Cross Disaster Relief Fund,and also pledged $1 million in the form of in-kind services to help New York City.

We will never forget our colleagues or thoseaffected by the disaster, just as we will neverforget the heroic efforts of the people who triedto save them.

* The Accenture Foundation, Inc. is a 501(c)(3) public charity that supports educational and other charitable activities.

They were husbands and wives, mothersand fathers, associates and best friends.And they will always be in our hearts.

Twelve Accenture colleagues lost their lives inthe World Trade Center disaster, and countlessothers were directly affected by the tragediesthat day. We dedicate this year’s annual reportto their memories, as we pledge our hearts andspirits to the families of their loved ones.

Accenture people around the globe respondedimmediately to the tragic events of September 11,2001, reaching out to help those in need.

Our people gave their time, working around theclock to build the Family Assistance Center inNew York to provide much-needed aid to thefamilies of victims.

Our people gave of themselves, through their per-sonal sacrifices and volunteer efforts worldwide.For instance, The Accenture Foundation, Inc.*established the Accenture Disaster Relief Fundto aid Accenture people, their families and

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Every day, Accenture people are working toaccelerate the visions of forward-lookingcompanies and organizations all over theglobe. Here are just five of those stories.

Client Story Contents

Dell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Visa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Civil Service College, Singapore . . . . . . . . . . . . 20North Sea Oil and Gas Industry . . . . . . . . . . . . . 22Sainsbury's . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Dell Parmer North 2 Factory, Austin, Texas16

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What if we could build more systems with less inventory?

Dell revolutionizes build-to-order manufacturing(again). You won’t find the words “good enough”in Dell’s dictionary. The innovative computersystems giant is known for pursuing goals thatwould be imponderable for other companies.

Case in point: in early 2000, Dell set out toupgrade its already world-class supply chain andmanufacturing infrastructure to operate on nomore than two hours of component inventory at a time. With the help of Accenture, Dell deliveredon that goal in the United States only 109 dayslater. By mid-2001, leveraging Accenture’s globalstaff and resources, the new system was in placeat Dell’s plants worldwide.

Accenture’s solution is driven by a sophisticatedInternet-based computing application thatenables Dell to accurately forecast needs, ordermaterials and direct factory scheduling based oncountless real-world variables and constraints.The application, developed in part by Dell andAccenture alliance partner i2 Technologies, gives

the company’s buyer/planners the ability to “visualize” and orchestrate the entire supply chainprocess, rather than merely juggling resources tofill the broad range of orders the companyreceives in any given day.

In only one year, the bold initiative already hasgenerated a 500 percent return on investment. It is also helping Dell adapt more quickly to fast-changing technologies with less capital risk.“Alliances like i2 enable us to accelerate resultsfor our clients,” explained Accenture client partner David Pope. “Dell is now in an evenstronger position to expand its leadership andefficiently meet demanding customer requirements.”

DellDick Hunter, Dell, Austin, Texas

Going everywhere Visa wants to be. It’s hardenough for some businesses to plan quarter toquarter. Visa is helping its member financial institutions “see” many years into the future.

The vision is called universal commerce—oruCommerce—a world in which payment transac-tions will be able to take place anywhere, anytimeand in any way. This could be in a store, over thetelephone, via a handheld device or interactive TV,through a paperless business-to-business transac-tion or via boundless other new payment methods.

Transforming its existing legacy computing systems to handle the volume growth and com-plexity of this “new world of payments” was anenormous task. So Visa turned to Accenture forhelp. Our solution: Visa Direct Exchange, a secure,scalable, open-system technology platform thatwill be the network and messaging backbone ofVisa’s uCommerce initiatives for years to come.

Initially, Accenture and Visa worked together todefine, engineer and validate the Direct Exchangeconcept. We then helped Visa work with 10strategic partners to efficiently design, build andlaunch Direct Exchange, without interruption toexisting services. The new system—one of thelargest of its kind in the world—is able to grow tosupport more than 40 billion transactions peryear, with near-term capabilities of 20,000 trans-actions per second. In addition to handling theseextreme volumes, Visa Direct Exchange providesbuyers and sellers with better information andincreased security.

“Direct Exchange gives Visa and its members theability to grow and to create new products asuCommerce takes new forms,” said Scott Thompson,executive vice president, Technology Solutions,Visa U.S.A. “As part of our ongoing 30-year rela-tionship, Visa and Accenture have teamed to pro-mote uCommerce to businesses worldwide.”

VisaSara Garrison, Visa, San Mateo County, California

Universal commerce demands a new universe of technology solutions.

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19Scott Thompson, Executive Vice President, Technology Solutions, Visa U.S.A., San Mateo County, California

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Civil Service College, SingaporeYam Ah Mee, Civil Service College, Singapore

Creating the Singapore Learning Exchange.Singapore is a small island that thinks big.The progressive nation has evolved dramaticallyover the past decade, driven by one of thefastest-growing economies in the world.

Providing world-class public service to its rapidlychanging population is a complex job. Butthrough an innovative joint venture withAccenture, the Singapore government has notonly answered the challenge, it has created adynamic education platform that it can market toother countries: the Singapore Learning Exchange.

Launched in August 2001, the Singapore LearningExchange is an “online marketplace” for deliveringInternet-based and traditional education andtraining programs to the country’s 60,000 civilservants and 4.3 million citizens. Featuring ananywhere-anytime curriculum of premier life-longlearning programs, the Learning Exchange willenable the country’s civil servants to continuously

improve their skills, expand their careers anddeliver better government service.

The Learning Exchange grew out of an earlier collaboration between Singapore and Accenturethat saved the government S$15.8 million (US$8.9million) in 2000 alone. To create even greater benefits, it will also be marketed to other coun-tries and to corporations, potentially providing along-term source of income for the island nation.

“The Learning Exchange is a new model for public- and private-sector collaboration,” saidJung Wei Foo, Accenture client partner. “For thegovernment, it is an innovative way to multiplythe value of its assets. For us, it represents afirst step toward a significant e-learning andtraining business around the world.”

Companies market their innovations. Why can’t countries?

Richard Yeo, Senior Executive, System Development, Civil Service College, Singapore

Sylvia Cheong, Senior Executive, System Development, Civil Service College, Singapore 21

22 Larissa Koudeleva, Accounts Assistant, and Mubbasher Khanzada, Junior Systems Engineer, Accenture, Aberdeen, Scotland

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North Sea Oil and Gas IndustryAnne Macdonald, BP Exploration, North Sea

We can’t strike oil in the back office. Wait a minute, maybe we can.

Innovative outsourcing contract fuels growth.Drilling for oil and gas in the North Sea is toughwork—and not just because of the weather. Rising costs and volatile pricing make financialmanagement in this inclement environment equally challenging.

With the help of an outsourcing service contractwith Accenture, six oil and gas companies* in theregion continue to grow and enhance their com-petitive positions despite the difficult conditions.Not only have some of these companies achievedsavings of 30 to 50 percent on finance andaccounting costs, they also have greatly enhancedtheir financial systems and services, positioningthemselves for growth even as the industrymatures.

Originally created to serve BP Exploration morethan 10 years ago, our multiclient outsourcingcenter in Aberdeen, Scotland, has grown toemploy approximately 450 Accenture professionalswho provide finance and accounting services tocompanies that handle approximately 40 percentof the oil and gas production in the North Sea.

“Two of our major clients have nearly doubled insize in the last two years alone,” explained JohnGillespie, Accenture client partner. “We have alsobeen able to offer new services across the clientbase that would be far more costly for individualcompanies to acquire, including a shared SAPaccounting platform and a suite of innovativeWeb-based initiatives.”

Using Aberdeen as a model, we have developedsimilar arrangements with oil and gas producersand refiners in Houston, Texas; Anchorage, Alaska;Budapest, Hungary; Stavanger, Norway; andWarwick, United Kingdom. We are also pursuingoutsourcing agreements with companies outsideof these regions and in other industries that canbenefit from similar innovations and shared solutions to common challenges.

* BP, Talisman Energy UK Ltd, Conoco (U.K.) Limited, LASMO plc, TotalFinaElf Exploration UK PLC, BOL (Britannia Operator Ltd)

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Sainsbury’sRobert Willett, Accenture, London, England

Restoring the luster of a retailing legend. WhenSir Peter Davis took over as chief executive at J Sainsbury plc in March 2000, he faced a bigchallenge. After a decade-long decline, the legendary supermarket chain had lost its premierposition with UK consumers. Its business systemsand processes were woefully out of date. Thecompany’s stock traded at historic lows.

Sainsbury’s needed to restore once-loyal customerrelationships, replace aging technology and rapidly reduce costs. Davis and his board of directors turned to Accenture for help, signing aseven-year agreement to transform Sainsbury’sbusiness. Central to this partnership, Accenturetook over all aspects of the food retailer’s information technology infrastructure, resulting in immediate savings of more than UK£35 million(US$50 million) a year.

By leveraging the capabilities of our network ofbusinesses partners—including Sun Microsystems,

NCR, Retek and Blue Martini Software—we havebeen able to move quickly to streamline many ofSainsbury’s business processes and begin to builda new information technology system to supportthe demands of modern retailing and consumers.Working with Sainsbury’s management, we havealso laid the groundwork for a total businesstransformation, which over time will includemodernizing the company, its store layouts andways of working.

“We’re building the ‘roadways’ to help Sainsbury’sreach its desired destination as the United Kingdom’sfirst choice for food shopping,” said Accentureclient partner Robert Willett. “Transforming thecompany’s infrastructure is the first crucial stepin transforming its ability to serve customers.”

You can’t build the store of the future with yesterday’s technology.

25Sainsbury’s, Chingford, Essex, England

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It’s not how many ideas you have,

Whether it’s your idea or Accenture’s...

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it’s how many you make happen.

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With clients in 18 industry groups across47 countries, Accenture is working toaddress some of the greatest businesschallenges and opportunities worldwide.Here are some of the ways we are delivering innovation to help our clientsrapidly achieve their visions:

We are assisting the AustralianHealth Insurance Commission(HIC) in implementing technologythat enables consumers, providersand pharmacists to perform online,self-service transactions in a fast,simple and cost-effective manner.

We are helping The BOC Group, a global industrial gases leaderbased in the United Kingdom,implement an enterprise resourceplanning system designed to generate significant savings.

We helped British Gas in theongoing development of its utilities business by creating a consumer-friendly website thatprovides British consumers withcomprehensive home-managementservices, from bill paying tohome buying.

By creating an easy-to-use Web-based claims managementsystem, we are helping theChubb Group of InsuranceCompanies revolutionize itsclaims handling process.

For Coca-Cola Bottlers Philippines,we developed a shared-servicesstrategy for reducing the cost andimproving the service of the company’s finance organization.

Through an innovative customerloyalty and rewards program, weare helping Deutsche Telekomimprove customer retention and communications.

We built a customer relationshipmanagement system to helpGermany’s Dresdner Bank link its service centers and branchesto maximize sales, productivityand profits.

Teaming with Avanade andMicrosoft, we helped EMIRecorded Music implement astorage and retrieval solutionfor more than 135,000 digitizedmusic assets, which can be distributed anywhere, anytime,in any digital format.

We helped Pennsylvania-basedGlatfelter redefine its missionand strategy, shifting from commodity forest products to higher-margin market segments.

Together with Highmark BlueCross Blue Shield, we developeda Web-based solution to helpthe insurer control costs andreduce administrative hassles for health care providers.

Together with Telewest, a UKcommunications and mediagroup, we created ImagineBroadband to develop the most

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innovative broadband productsand to be the leading integratorof broadband delivery platformsworldwide.

We created Indeliq, a newAccenture company that provides simulation-based e-learning applications toimprove business performance.

We worked closely withMarriott International to jointlycreate a shared services centerto centralize many of Marriott’sfinance functions, generatingmillions of dollars in annualbenefits for the company.

We partnered with Spain’sMecalux to create LogisMarket,a global electronic marketplacefor buyers and sellers of storage,handling, maintenance andtransport goods and services.

Through a major services agree-ment, we are providing internalapplication development andmaintenance for MicrosoftOperations and Sales.

We are helping Peugeot improvecustomer service, increase salesand strengthen relationshipswith dealers and consumers viathe Internet.

We helped develop and launchQuadrem, a global electronicmarketplace that enables mining,minerals and metals companiesto reduce costs in procurementand supply chain management.

With Retek, we are marketing“Scientific Retailing,” combiningour retail expertise with jointlydeveloped predictive applica-tions to optimize retailers’ supply and demand decisions.

We are helping Shell Explorationand Production standardize itsglobal processes, data and infor-mation technology infrastructureto realize substantial savings.

In less than nine months, wehelped Sony ComputerEntertainment Europe build a new marketing and distributionchannel to roll out its PlayStation 2across the continent.

We worked with TakedaPharmaceuticals America to builda comprehensive set of businesscapabilities, including drug devel-opment, sales and marketing, andsupply chain management.

We are helping UNAIDS inGeneva build a global portal toenable professionals in 180countries to share informationto combat HIV/AIDS.

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Financial Highlights

Revenues Before Reimbursements by AreaPercent Percent

2001 Change 2000 Change 1999

Worldwide Revenues $ 11,444 17 $ 9,752 2 $ 9,550Americas 6,180 17 5,262 1 5,208EMEAI (1) 4,438 20 3,709 1 3,657Asia Pacific 826 6 781 14 685

Global Market Unit Information

Communications & High TechRevenues before reimbursements $ 3,226 15 $ 2,806 12 $ 2,499Operating income, excluding one-time charges(2) 650 2 638 20 532

Financial ServicesRevenues before reimbursements 2,897 14 2,542 (7) 2,737Operating income, excluding one-time charges(2) 770 18 653 (20) 814

GovernmentRevenues before reimbursements 1,003 26 797 3 777Operating income, excluding one-time charges(2) 121 71 71 (24) 94

ProductsRevenues before reimbursements 2,272 20 1,891 14 1,664Operating income, excluding one-time charges(2) 494 27 390 56 250

ResourcesRevenues before reimbursements 1,971 19 1,661 (8) 1,812Operating income, excluding one-time charges(2) 382 53 249 (7) 267

Other (3)

Revenues before reimbursements 75 36 55 (10) 61Operating income, excluding one-time charges(2) 94 11 85 13 75

TotalRevenues before reimbursements $ 11,444 17 $ 9,752 2 $ 9,550Operating income, excluding one-time charges(2) 2,511 20 2,086 3 2,032

(1) EMEAI includes Europe, Middle East, Africa and India.(2) In 2001, one-time charges totaled $1,815 to rename the organization, to complete the transition to a corporate structure and for the one-time grants of restricted share units to partners,

former partners and employees.(3) Other includes our consolidated affiliate companies and operations, which are not related to a global market unit, as well as an interest credit to offset interest expense charged directly

to the global market units in arriving at Operating income, excluding one-time charges.

US dollar amounts in millions for the years ended August 31, 1999-2001.

All amounts throughout this annual report are stated in US dollars, except where noted.

The complete text of Accenture's Annual Report on Form 10-K for the year ended August 31, 2001, can be viewed via the Internet at the Investor Relations section of our website at:www.accenture.com.

Combined and Consolidated Balance SheetsConsolidated Combined

Balance Sheet Balance Sheet2001 2000

Assets

Current AssetsCash and cash equivalents $ 1,880,083 $ 1,270,516Receivables from clients 1,498,812 1,450,555Unbilled services 731,802 682,935Other current assets 468,940 595,279

Total current assets 4,579,637 3,999,285Non-Current AssetsInvestments 324,139 509,665Property and equipment, net 822,318 705,508Other non-current assets 335,262 236,839

Total non-current assets 1,481,719 1,452,012Total Assets $ 6,061,356 $ 5,451,297

Liabilities and Shareholders’ Equity

Current LiabilitiesShort-term debt $ 190,669 $ 194,686Accounts payable 371,794 233,737Deferred revenues 810,043 948,390Accrued payroll and related benefits 1,050,385 700,843Other accrued liabilities 1,755,929 906,323

Total current liabilities 4,178,820 2,983,979Non-Current LiabilitiesLong-term debt 1,090 98,865Other non-current liabilities 1,191,332 -

Total non-current liabilities 1,192,422 98,865Minority Interest 407,926 -Equity

Shareholders’ equity 282,188 -Partners’ capital - 2,368,453

Total equity 282,188 2,368,453Total Liabilities and Shareholders’ Equity $ 6,061,356 $ 5,451,297

US dollar amounts in thousands at August 31, 2000 and 2001.

The complete text of Accenture's Annual Report on Form 10-K for the year ended August 31, 2001, can be viewed via the Internet at the Investor Relations section of our website at:www.accenture.com.

31

32

Arnaud André*Managing Partner-GlobalPeople Matters & EnablementParis

Tim Breene*Managing Partner-GlobalService LinesBoston

Pamela J. Craig*Managing Partner-GlobalBusiness OperationsNew York

Karl-Heinz Flöther*Managing Partner-FinancialServices Global Market UnitFrankfurt

Joe W. Forehand*Chairman & CEODallas

William D. Green*Managing Partner-Communications & High TechGlobal Market Unit andCountry Managing Director-United StatesBoston

Gregg G. Hartemayer*Managing Partner-ProductsGlobal Market UnitChicago

David R. Hunter*Managing Partner-Government Global Market UnitSydney

Stephan A. James*Chief Operating OfficerDallas

José Luis Manzanares*Managing Partner-IT &Geographic ServicesMadrid

Michael G. McGrath*Capital Risk OfficerPalo Alto

Douglas G. Scrivner*General Counsel andSecretaryPalo Alto

Mary A. Tolan*Managing Partner-ResourcesGlobal Market UnitChicago

Jackson L. Wilson, Jr.*Corporate DevelopmentOfficer and Managing GeneralPartner-Accenture TechnologyVenturesDallas

Harry L. You*Chief Financial Officer andChief Accounting OfficerDallas

* Also members of the Management Committee and Executive Officers of Accenture

Raúl E. AlvaradoManaging Partner-Communications &High Tech Global Market Unit,Business OperationsMadrid

Susan B. ButlerManaging Partner-Office ofthe CEODallas

Gianfranco CasatiGeneral Partner-Accenture Technology VenturesMilan

Yew Chye ChingManaging Partner-FinancialServices Global Market Unit, AsiaKuala Lumpur

Martin I. ColeManaging Partner-SolutionsOperations Service LineHartford

Joe W. ForehandChairman & CEO Accenture

Steven A. Ballmer 3

Chief Executive OfficerMicrosoft Corp.

Dina Dublon 2

Executive Vice President and Chief Financial OfficerJ.P. Morgan Chase & Co.

Karl-Heinz FlötherManaging Partner–FinancialServices Global Market UnitAccenture

Joel P. Friedman 3

Managing General Partner–Accenture TechnologyVentures, Americas Accenture

William D. Green 2

Managing Partner–Communications & High TechGlobal Market Unit andCountry Managing Director-United States Accenture

Stephan A. JamesChief Operating Officer Accenture

Robert I. Lipp 1

Former ChairmanTravelers Property Casualtyand Former Vice Chairman Citigroup

Blythe J. McGarvie 1

Executive Vice President and Chief Financial OfficerBIC Group

Sir Mark Moody-Stuart 2, 3

Former Chairman Royal Dutch/Shell Group ofCompanies and Former Chairman The Shell Transport andTrading Company

Masakatsu Mori 3

Country Managing Director–Japan and Managing Partner–Japan Operating Unit Accenture

Diego ViscontiCountry Managing Director–Italy and Managing Partner–Communications & High TechGlobal Market Unit, Europeand Latin America Accenture

Wulf von Schimmelmann 1, 3

Chief Executive OfficerDeutsche Postbank

Jackson L. Wilson, Jr.Corporate DevelopmentOfficer and Managing General Partner–AccentureTechnology Ventures Accenture

1 Audit Committee, 2 Compensation Committee, 3 Nominating Committee

Executive CommitteeBoard of Directors

33

Joellin ComerfordManaging Partner-StrategicCapital for the AmericasNew York

William C. CopacinoManaging Partner-SupplyChain ManagementService LineBoston

Juan DomènechManaging Partner-Government Global Market Unit, Europe, LatinAmerica and AfricaBarcelona

Vernon J. EllisInternational ChairmanLondon

Eddy J. FikseManaging Partner-ResourcesGlobal Market Unit, North AmericaDallas

Mark FosterManaging Partner-ProductsGlobal Market Unit, EuropeLondon

John G. FreelandManaging Partner-CustomerRelationship ManagementService LineNew York

Robert N. FrerichsManaging Partner and Market Maker-Communications & High TechGlobal Market UnitLos Angeles

Joel P. FriedmanManaging General Partner-Accenture TechnologyVentures, AmericasSan Francisco

Benoît GénuiniCountry Managing Director-France and Managing Partner-Resources Global Market Unit, FranceParis

James HallManaging Partner-TechnologyBusiness SolutionsLondon

F. Edwin HarbachChief Operating Officer-JapanOperating UnitTokyo

Graham T. HenryManaging Partner-Growth &Strategy, AsiaHong Kong

Roger IngoldManaging Partner-ProductsGlobal Market Unit, LatinAmericaSão Paulo

Timothy G. JuryManaging Partner-Communications & High TechGlobal Market Unit, North AmericaKansas City

Thomas KöhlerManaging Partner-ProductsGlobal Market Unit, Austria,Switzerland and Germany andCountry Managing Director-GermanyFrankfurt

Michael J. MayManaging Partner-Strategy &Business ArchitectureService Line and ManagingPartner-Thought LeadershipNew York

Carol E. MeyerPartner-Investor RelationsNew York

David MilnerManaging Partner-FinancialServices Global Market Unit,North EuropeLondon

Masakatsu MoriCountry Managing Director-Japan and ManagingPartner-Japan Operating UnitTokyo

James E. MurphyGlobal Managing Director-Marketing & CommunicationsNew York

Thomas H. PikeManaging Partner-Growth &StrategyNew York

Gill RiderManaging Partner-ResourcesGlobal Market Unit, Europe,Middle East, Africa and LatinAmericaLondon

Stephen J. RohlederManaging Partner-Government Global MarketUnit, United StatesWashington, D.C.

David E. SeibelCountry Managing Director-CanadaOttawa

Magnus SjöqvistCountry Managing Director-SwedenStockholm

Thomas J. SkellyManaging Partner-FinancialServices Global Market Unit,Banking and Insurance, North AmericaChicago

Stephen M. SmithManaging Partner-ProductsGlobal Market Unit,Americas, Australia, NewZealand and AsiaPhiladelphia

Jesse B. TutorManaging Partner-Partner/Associate Partner MattersHouston

Carlos VidalCountry Managing Director-Spain and Managing Partner-Financial Services GlobalMarket Unit, South Europe,Africa and Latin AmericaMadrid

Diego ViscontiCountry Managing Director-Italy and Managing Partner-Communications & High TechGlobal Market Unit, Europeand Latin AmericaMilan

Ian WatmoreCountry Managing Director-United KingdomManchester

Robert A. WillettManaging Partner-RetailLondon

Derek B. YoungCountry Managing Director-Australia and ManagingPartner-Financial ServicesGlobal Market Unit, Asia PacificMelbourne

34

Countries and Key Locations

Argentina Buenos Aires

AustraliaBrisbaneCanberraMelbourneSydney

AustriaVienna

BelgiumBrussels

BrazilRio de JaneiroSão Paulo

CanadaMontréal OttawaTorontoVancouver

ChileSantiago de Chile

ColombiaBogotá

Czech RepublicPrague

DenmarkCopenhagen

FinlandHelsinki

FranceLyonParisSophia Antipolis

GermanyBerlinDüsseldorfFrankfurtHamburgMunich

GreeceAthens

HungaryBudapest

IndiaMumbaiNew Delhi

IndonesiaJakarta

IrelandDublin

ItalyMilanRomeTurin

JapanOsakaTokyo

KoreaSeoul

LuxembourgLuxembourg

MalaysiaKuala Lumpur

MexicoMexico CityMonterrey

The NetherlandsAmsterdam

New ZealandWellington

NigeriaLagos

NorwayOsloStavanger

People’s Republic of ChinaBeijingHong Kong SARShanghai

The PhilippinesManila

PolandWarsaw

PortugalLisbonPorto

RussiaMoscow

Saudi ArabiaRiyadh

SingaporeSingapore

Slovak RepublicBratislava

South AfricaCape TownJohannesburgPretoria

SpainBarcelonaBilbaoMadridSevilla

SwedenGothenburgStockholm

SwitzerlandZürich

TaiwanTaipei

ThailandBangkok

TurkeyIstanbul

United Arab EmiratesAbu DhabiDubai

United KingdomLondonManchesterNewcastle

United StatesAlbany, New YorkAtlanta, GeorgiaAustin, TexasBoston, MassachusettsCharlotte, North CarolinaChicago, IllinoisCincinnati, OhioCleveland, OhioColumbus, OhioDallas, TexasDenver, ColoradoDetroit, MichiganFlorham Park, New JerseyHartford, ConnecticutHouston, TexasIndianapolis, IndianaKansas City, MissouriLos Angeles, CaliforniaMiami, FloridaMilwaukee, WisconsinMinneapolis, MinnesotaNew York, New YorkPalo Alto, CaliforniaPhiladelphia, PennsylvaniaPhoenix, ArizonaPittsburgh, PennsylvaniaRaleigh, North CarolinaSacramento, CaliforniaSt. Louis, MissouriSt. Petersburg, FloridaSan Francisco, CaliforniaSeattle, WashingtonTallahassee, FloridaWashington, D.C.Wilmington, Delaware

VenezuelaCaracas

35

Shareholder Information

Stock ListingAccenture is traded on the New York StockExchange under the symbol ACN.

Registrar and Transfer AgentBranch Transfer Agent:EquiServe Trust CompanyPO Box 43010Providence, RI 02940

Bermuda Transfer Agent:Reid Management LtdHamilton, Bermuda

Shareholder ServicesAccenture’s branch transfer agent, EquiServe,provides services to registered shareholders.EquiServe can be contacted in the following ways:

EquiServe Trust CompanyPO Box 43010Providence, RI 02940 Telephone: +1 781 575 3400Website: www.equiserve.com

Hearing-impaired shareholders with access totelecommunications device (TDD) can communicatedirectly with EquiServe by calling +1 800 952 9245.

Shareholders residing outside the United States,Canada and Puerto Rico should call +1 781 575 3100.

Annual Report on Form 10-KThe Annual Report on Form 10-K for the year endedAugust 31, 2001, as filed with the U.S. Securities andExchange Commission, is available without chargeupon written request to Investor Relations. TheAnnual Report on Form 10-K can be viewed via theInternet at the Investor Relations section ofAccenture’s website at: www.accenture.com.

Investor RelationsSecurities analysts, institutional investors andother portfolio managers may contact:

Carol Meyer, Partner–Investor RelationsAccenture 1345 Avenue of the Americas, 18th FloorNew York, NY 10105Telephone: +1 917 452 4578Fax : +1 917 527 6126E-mail: investor.relations@accenture.com

Corporate CommunicationsNews media and industry analysts may contact:

Roxanne Taylor, Partner–Corporate CommunicationsAccenture1345 Avenue of the Americas, 18th FloorNew York, NY 10105Telephone: +1 917 452 5106Fax: +1 917 527 5387E-mail: roxanne.taylor@accenture.com

Internet AddressMajor news releases and other information areavailable on Accenture’s website: www.accenture.com.

36

AccentureAccenture is the world's leading managementand technology services organization. Throughits network of businesses approach—in which thecompany enhances its consulting and outsourcingexpertise through alliances, affiliated companiesand other capabilities—Accenture delivers innova-tions that help clients across all industriesquickly realize their visions.

With more than 75,000 people in 47 countries,Accenture can quickly mobilize its broad and deepglobal resources to accelerate results for clients.The company has extensive experience in 18 industry groups in key business areas, includingcustomer relationship management, supply chainmanagement, business strategy, technology andoutsourcing. Accenture also leverages its affiliates,alliances and venture capital activities to help driveinnovative solutions. Strong relationships withinthis network of businesses extend Accenture'sknowledge of emerging business models and products, enabling the company to provide itsclients with the best possible tools, technologiesand capabilities. Accenture uses these resources toserve as a catalyst, helping clients anticipate andgain value from business and technology change.

Recognizing the important role of business insociety, Accenture supports the active involvementof its people in community volunteer initiativesall around the world. The company also isinvolved in major projects where it can leverage itscapabilities in cooperation with other businesses,governments and organizations to make a positivecontribution to the communities in which it oper-ates. For example, Accenture is co-chairing theWorld Economic Forum task force on the digitaldivide and is taking a lead role in the G8 DigitalOpportunities task force. Both initiatives seek toensure that far more of the world's people aregiven the chance to benefit from the combinationof entrepreneurship and new technology to createa virtuous circle of economic development.

Accenture’s home page is www.accenture.com.

Accenture Technology Ventures Accenture Technology Ventures helps talentedentrepreneurs build companies that can transformentire industries, create new markets and ulti-mately generate superior economic returns. Itsportfolio includes innovative companies that arebuilding key components of tomorrow's commerceinfrastructure. Launched in December 1999,Accenture Technology Ventures is the venturecapital unit of Accenture. Its home page iswww.accenturetechventures.com.

Forward-looking Statements and Certain Factors that May Affect OurBusiness—We have included in this report and in our Annual Report onForm 10-K filed with the SEC, forward-looking statements relating toour operations that are based on our current expectations, estimatesand projections. Words such as “expects,” “intends,” “plans,” “projects,”“believes,” “estimates” and similar expressions are used to identifythese forward-looking statements. These statements are not guaran-tees of future performance and involve risks, uncertainties andassumptions that are difficult to predict. Forward-looking statementsare based upon assumptions as to future events that may not prove tobe accurate. Actual outcomes and results may differ materially fromwhat is expressed or forecast in these forward-looking statements.

© 2001 Accenture. All rights reserved. Accenture and the Accenturelogo are trademarks of Accenture and/or its affiliates in the UnitedStates and certain other countries. All other trademarks and registeredtrademarks mentioned in this document are the property of theirrespective owners.

About Accenture

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