TBR 2Q11 Accenture Report

TBR

TECHNOLOGY BUSINESS RESEARCH, INC.

Technology Business ResearchAccelerating Customer Success Through Business Research

TBR


Accenture

PROFESSIONAL SERVICES BUSINESS QUARTERLYSM

Second Calendar Quarter 2011Third Fiscal Quarter 2011 Ended May 31, 2011

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

5.95Publish Date: July 12, 2011Author: Elitsa Bakalova ([email protected]), Professional Services Practice AnalystContent Editor: Alison Crawford, Professional Services Practice Senior Analyst

mailto:[email protected]

TBR

Accenture 2Q11 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc.3

Company Analysis3 TBR Position4 Executive Summary6 Strategy Overview8 Corporate SWOT Analysis9 Scenario Discussion12 Financial Model Strategy16 Go-to-Market & Services Strategies20 Alliance & Acquisition Strategies22 Geographic Analysis23 Resource Management Strategy

Company Data Models25 Income Statement26 Balance Sheet27 Service Line Model28 Operating Group Model

29 Geographic Model30 Operating Expense Model31 Headcount Model32 Financial Strategy Graphs34 Go-to-Market Graphs35 Resource Management Graphs37 Acquisitions Table

38 Portfolio of Services Table39 Services Announcements

42 Quarterly Signings Tables53 Strategic Alliances Tables55 Org. Structure

56 Worldwide Locations Table58 About TBR

Contents

TBR


Corporate Strategic ObjectivesAchieve profitable growth (grow revenue 14.0% to 15.0% in local currency and reach operating margin of 13.6% to 13.7% in FY11)

Broad investment in growth and a strong focus on operational efficiency will help Accenture reach its growth and profit targets.Expand business from three dimensions: core business, outside of core business in growth service areas, and in emerging and developed markets Growth in Accenture’s core business (management consulting, technology and BPO) will continue for the near term. The company must aggressively extend its client reach in new service areas, such as cloud computing, analytics and mobility, to generate material revenue gains. Competition in those high-growth areas is increasing, which could create challenges for Accenture’s expansion.Recruit people to expand onshore and Global Delivery Network and accommodate for demandAccenture is on track to hire at least 66,000 people in FY11 globally (gross additions on/near/offshore). Its ability to quickly train and deploy people will help Accenture meet increasing market demand with less costs attached to new talent efforts.

TBR Position

TBR AssessmentWhile pockets of uncertainty remain in the public sector – the single challenged area of Accenture’s business – the company is performing as a well-oiled machine. Accenture is seeing increased demand for IT services in North America, parts of Europe and emerging markets. The company is addressing demand with its broad portfolio of offerings that covers its core business and innovative service areas, strong industry expertise and high-value transformational proposition. Although major economies will remain Accenture’s key revenue generator, emerging growth markets will begin to play a more important role in the company’s long-term business strategy.

A diversified growth strategy will help Accenture maintain positive momentum across all service lines and geographies

(in $ millions) Consensus Guidance Range ActualAccenture Net Revenue $6,000 - $6,200 $6,300 - $6,500 $6,720Accenture Operating Margin N/A 13.6% - 13.7% (FY11) 14.1%Accenture Non-GAAP EPS $0.85 $0.80- $0.95 $0.93

(in $ millions) TBR Estimate Consensus Guidance RangeAccenture Net Revenue $6,500 $6,300 - $6,600 $6,400 - $6,600Accenture Operating Margin 14.2% N/A 13.6% - 13.7% (FY11)Accenture Non-GAAP EPS N/A $0.83-$0.92 $0.85- $0.95

ACCENTURE'S 3Q11 GUIDANCE AND EXPECTATIONS

ACCENTURE'S 2Q11 PERFORMANCE VS. EXPECTATIONS

TBR


Executive Summary

Accenture outperformed its peers in go-to-market and financial metrics. Accenture’s strong revenue level is driven by increased demand for IT services and the company’s well- balanced mix of consulting, SI and outsourcing offerings.

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

Accenture’s 2Q11 performance originates from strong revenue, profitability and utilization

2Q10 3Q10 4Q10 1Q11 2Q11

Financial Model Strategy: 5.96 6.03 6.23 6.29 6.16 Go-to-Market & Services Strategies: 6.68 6.31 6.46 6.35 6.45 Resource Management Strategy: 5.03 4.97 5.19 5.22 5.22 TOTAL AVERAGE TBR SCORE: 5.89 5.77 5.96 5.95 5.95

TBR SCORING SUMMARY: CALENDAR QUARTER RESULTSFINANCIAL METRICS

TBR Score

Company Figure

Average in Class

Standard Deviation/2

Operating Margin 5.71 14.1% 9.4% 6.6%Current Ratio 4.49 1.51 1.80 57.1%Debt-to-Asset Ratio 3.71 0.72 0.56 12.6%Return on Assets (TTM) 7.17 15.9% 8.1% 3.6%Return on Equity (TTM) 7.68 57.8% 15.6% 15.7%

TOTAL AVERAGE TBR SCORE

GO-TO-MARKET & SERVICES METRICSTBR

ScoreCompany

FigureAverage in Class


Revenue (in $ Mill ions) 8.01 $6,720 $2,384 $1,441Revenue Growth YTY 5.18 20.6% 17.2% 19.4%Backlog/Revenue 6.06 2.39 2.01 0.36 Day Sales Outstanding 6.86 43.83 65.25 11.54

TOTAL AVERAGE TBR SCORE

RESOURCE MANAGEMENT METRICSTBR

ScoreCompany

FigureAverage in Class


Gross Margin 5.49 34.4% 31.5% 5.9%Operating Expenses as a % of Revenue 5.01 20.2% 20.3% 4.9%Revenue per Employee (TTM) 4.17 $113,602 $175,136 $73,846Operating Income per Employee (TTM) 4.90 $15,286 $17,498 $22,889Utilization Rate 7.70 85.0% 77.2% 2.9%Turnover 5.26 15.0% 15.8% 3.0%

TOTAL AVERAGE TBR SCORE 5.22

6.16

6.45

TBR


TBR assessment of Accenture’s two-year strategic outlookKey TakeawaysFinancial: Accenture will reach its FY11 ambition to outpace market growth, thanks to its broad business expansion emphasis focused on core business, new service areas (cloud, analytics, etc.), and emerging and developed markets.Go to Market: Accenture’s industry expertise plays a key role in addressing vertical-specific client needs.Resource: Accenture will continue to invest in talent onshore and offshore to address improved demand.

Strategic Outlook• Accenture is investing in its brand, technology, industry

expertise and people to continue the pursuit of helping clients transform their businesses and achieve high performance.

• Clients are ramping up their investments in transformational projects; in response, Accenture is laying a strategic foundation to capitalize on innovation, emerging technologies and top-notch employees. These investments are smart and, if implemented well, will herald success for the company. While we see potential challenges as other multinational IT service providers invest in creating end-to-end holistic solutions, and Indian vendors play catch-up to build consulting abilities, we believe Accenture is in an unshakeable position.

• Accenture’s brand is its people, and its people are its brand. The company relies heavily on the investments made in its 223,300 employees and leverages in-house expertise and knowledge to provide quantifiable results across the industries it serves. Accenture’s brand allows it to attract talent to conduct transformational engagements, and TBR believes it will be a recruiting asset in the coming years as the global war for talent further heats up.

Executive Summary

Accenture will benefit from positive market trends and its investment in offerings and capabilities to address demand

$5.57 $5.42 $6.05$6.05 $6.72 $6.50

$20.94$22.21

$26.29$28.80

$0.80 $0.71 $0.83 $0.77 $0.95 $0.92$2.58

$3.00 $3.65 $4.12

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CY09 CY10 CY11Est.

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ACCENTURE'S REVENUE, GROWTH AND PROFITABILITY

Total Revenue (Net Revenue) Operating IncomeRevenue Growth Y/Y Operating Margin

SOURCE: ACCENTURE AND TBR

TBR

TBR


Function Key Strategies TBR Assessment

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

►

Accenture maintains a strong portfolio of high-value offerings in consulting & SI and outsourcing. Clients looking to generate cost savings, transform their businesses and IT infrastructures and achieve growth are turning to Accenture, creating momentum for the company. TBR expects this positive outlook to remain during 3Q11, the last quarter of Accenture’s FY11, and into FY12.

Financial

Deliver profitable growth:• Grow FY11 revenue by 14% to

15% 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.

►

Accenture surpassed its guidance range again this quarter with solid revenue returns. A major contributor to its top-line strength is continuous signings growth and pipeline.

Efficiency on the OPEX side coupled with shifting of service delivery to the Global Delivery Network (GDN) – especially for outsourcing and, increasingly, SI – and use of assets to automate delivery will support Accenture’s long-term profitability and attract clients.

Go to Market

Expand business from three dimensions: core business as primary growth engine, outside of core business in growth service areas, and in emerging and developed markets.

►

Accenture’s core business (management consulting, technology and BPO) remains the key focus and strength for the company. However, investment in high-growth service areas (cloud computing, analytics, mobility), supplemented by geographic expansion in emerging regions, will gradually increase their positive influence on the company’s performance in the long run.

Strategy Overview

Key: Working: Short-term impact expected on bottom/top line Not working: No major impact or differentiation expected

Accenture will generate sustained revenue growth by delivering high-value services to its clients

TBR


Function Key Strategies TBR Assessment

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 and expand global reach

►

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 mobility. The firm will utilize partners to augment its offerings and capabilities to gain new channels and access to technologies.

One of Accenture’s strengths is its ability to integrate small-scale acquisitions that fill gaps in its portfolio and client reach. Accenture’s acquisitions quest will continue in the coming quarters, as it looks to augment its portfolio, IP and vertical expertise and grow in emerging markets.

Resources & Investments

• Recruit people to expand GDN and onshore (hiring ~66,000 employees in FY11)

• Develop and increase leverage of global delivery capabilities

• Invest in automation to offer differentiated, less risky implementations

►

Accenture will continue to grow its headcount to address improving market demand. The company is augmenting its GDN, particularly in lower-cost regions (e.g., Philippines, India, Brazil) to strengthen its global delivery and better serve local market clients. Service areas with improving demand, such as consulting & SI, are also seeing staff increases, largely onshore for consulting, as a response to returning discretionary spending.

Investments in industrialized/standard service delivery (e.g. specialization of people, automation tools, solution factories and reusable technical libraries) will support the company’s bottom line in the long run.

Key: Working: Short-term impact expected on bottom/top line Not working: No major impact or differentiation expected

Accenture is growing its global delivery resources while entrenching itself in local markets to gain share in emerging economies

Strategy Overview

TBR


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1

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Corporate SWOT AnalysisStrengths• High-end consulting and integration capabilities• Broad GDN and developed presence in low-cost

locations • Leverage of a standard framework for building and

delivering services across the GDN• Alliance relationships with 150+ partners • Strong industry, technology expertise (Accenture is

vendor-agnostic) and proprietary tools/assets• Core competency to attract, hire, train, deploy and

retain skilled talent

Opportunities• Target growth opportunities in emerging markets

beyond the BRIC region • Expansion of GDN in Latin America due to demand for

services delivered from the region• Stabilizing consulting/SI demand will drive growth in

Accenture’s consulting & SI business • Growth potential of cloud computing can help

Accenture gain traction• Increasing demand for analytics to support

Accenture’s growth• Demand for mobility solutions across verticals

Weaknesses• Price competitiveness is limited in commoditized/sole

sourcing deals – unlike in large/complex engagements.

• Recruiting and training costs tied to hiring, wage and salary increases used as means to hold off rising attrition are diluting gross margin in FY11.

• High concentration of resources in India and the Philippines (the two account for ~80% of Accenture’s near/offshore headcount) creates operational risk

Threats• Indian vendors are becoming more active in business

consulting, analytics and remote management ITO.• Competition from other and European firms for top

clients • Uneven economic performance across the European

countries and tight public sector spending will challenge Accenture’s performance

Corporate SWOT Analysis

Accenture’s well-developed resources, industry and technology expertise allow it to win new growth opportunities

TBR


Scenario Discussion: Revenue and signings growth, coupled with positive demand trends in core and new service areas, indicate growth for AccentureScenario SWOT AssessmentStrength: Deep industry and functional expertise attracts clientsWeakness: Prices tend to be higher than its competitors (based on type of engagement)Opportunity: Growing demand across core business and new service areasThreat: Competitors addressing improving demand, investing in new service areas and creating challenges for Accenture’s growth

• TBR anticipates demand for Accenture’s core business (management consulting, technology and BPO) will remain strong in future quarters. Accenture’s strong industry and technology expertise will help it gain momentum across a broad range of technology-related services.

• The firm’s investment in new high-demand service areas, such as cloud computing, analytics and mobility, will supplement its core business growth to maintain pipeline growth for years to come. While each of the three service areas is at the front end of adoption, Accenture is investing in resources and capabilities to prepare for upcoming demand growth.o Cloud – Adoption will be gradual and clients will not replace

structures overnight or even move core systems en masse to the cloud. Accenture’s strong consulting know-how is the key aspect that will drive cloud strategy work with clients.

o Analytics – A key differentiator is Accenture’s ability to move from insights to decisions to outcomes by providing a holistic service approach that starts with strategy and ends with execution.

o Mobility – Accenture took over Symbian software development from Nokia and deepened its partnership with SAP to develop enterprise mobility solutions on the Sybase platform – moves that give Accenture a bigger play in mobility.

Scenario Discussion

A technology revolution is upon us, and Accenture must tame Cloud Computing, Analytics and Mobility to drive growth in the long run

$19.7$23.4 $21.6 $21.6

$25.3$28.1

18.3% 18.7%

-7.7%-0.1%

17.5% 11.1%

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ACCENTURE'S NET REVENUE AND GROWTH

Net RevenueNet Revenue Growth Y-t-Y


CAGR FY07 - FY10: 3% (in U.S. dollars)

TBR

TBR


Scenario Discussion: Accenture is seeing a strong comeback in consulting & SI (59% of its business in 2Q11) with revenue and signings buildingScenario SWOT AssessmentStrength: Strong consulting & SI brand and proven track record (25+ years in management consulting, 10+ years of experience in delivering large-scale IT transformation projects)Weakness: Challenges with work-life balance for employees (e.g., long hours, hard work, travel)Opportunity: Stabilizing consulting/SI demand Threat: Other MNCs investing in end-to-end holistic transformation solutions and capabilities

• TBR predicts two types of projects will become the norm; the first will require an end-to-end hardware-software-services capability and resonate well in emerging geos that need to build infrastructure, as well as processes, while the second type will involve transformational improvement engagements that will leverage infrastructures to deliver business benefits. To win such projects, clients will require systems integrators to have experienced personnel, a track record in the vertical, and an understanding of how technology can generate business processes innovation and produce results at the top-and bottom-line levels.

• Accenture has well-developed industry expertise, which plays a key role in addressing vertical-specific client needs (100,000+ people specialized in industry skills across consulting, technology, outsourcing).

• Accenture has a history of providing high-value, often holistic/large-scale transformation to clients. Accenture achieves this thanks to its consulting capabilities, SI expertise and use of assets/intellectual property. The company seamlessly integrates consulting & SI with outsourcing capabilities across the full cycle of business/technology transformation.

• The positive momentum in consulting & SI will continue as Accenture attracts clients with its strong value proposition.

Scenario Discussion

While the trend requiring consulting expertise has some vendors scrambling, Accenture has already made necessary investments

$14.1 $12.6 $12.4

$14.8 $16.6

$9.3 $9.0 $9.2

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ACCENTURE'S SERVICE LINE REVENUE AND PROJECTIONS

Consulting & SI OutsourcingConsulting & SI Growth Y-t-Y Outsourcing Growth Y-t-Y


TBR

TBR


Scenario Discussion: Emerging markets will create avenues for Accenture’s growth in the long runScenario SWOT AssessmentStrength: Established presence in high-growth emerging markets for global service deliveryWeakness: Concentration of resources in India and the Philippines Opportunity: Increasing demand for IT services in emerging, fast-growth regionsThreat: Stiff competition within emerging markets for market share and talent

• High-growth emerging markets represent a significant opportunity for Accenture’s global delivery capabilities. The firm is intensifying its focus on local clients to diversify its revenue base and decrease risk from slower performance of the major economies (~85% of annual revenue).

• Accenture is making progress in winning local clients in emerging high-growth markets, and this trend will continue in the long run. The company is expanding beyond the BRIC region in areas such as Turkey, Mexico, Middle East, South Africa, and South Korea. Brazil reached ~$1.0 billion in annual revenue and is experiencing strong growth with positive market momentum.

• Organic investment is the major driver behind emerging market expansion and occasional small-scale acquisitions are being used to gain a foothold in underpenetrated/small-scale regions, such as the Middle East (Accenture acquired a majority stake in Al Faisaliah Business & Technology Company, based in Saudi Arabia).

• Accenture is taking the right global expansion approach. It will experience strong benefits due to its ability to cross-utilize established global service delivery capabilities in emerging markets and serve local clients. At the same time, competition in emerging markets is increasing, which could challenge Accenture’s expansion efforts.

Scenario Discussion

Emerging markets are growing increasingly important, but still represent a small share of Accenture’s overall business

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ACCENTURE'S EMERGING MARKETS REVENUE

SOURCE: ACCENTURE AND TBR ESTIMATES

TBR

CAGR FY10 - FY15: 15% (in U.S. dollars)

TBR


Accenture’s continued momentum will drive more record numbers by the end of FY11Revenue Performance and Strategies

2Q11 Net Revenue: $6.7 billion, 20.6% YTY

Accenture beat its revenue guidance range for the second straight quarter. The $6.72 billion net revenue in 2Q11 was an all-time high for the company and well above the guidance range of $6.3 billion to $6.5 billion. Positive market momentum allowed Accenture to make another increase in its FY11 guidance to 14% to 15% growth in local currency – up from 11% to 14%.

Revenue and Growth Outlook

• While the growth expectation for FY12 of 7% to 10% in local currency is conservative, TBR expects this estimate to increase given positive global demand trends.

• Accenture also sees growth potential in the healthcare sector as this vertical has gained traction and saw substantial growth in the quarter.

• Expected revenue growth in the upcoming quarters from strong demand for outsourcing and consulting bolster pipeline and signings.

Financial Model Strategy: Revenue

$22.4 $21.6$20.9 $20.8

$21.3 $21.6 $22.2$23.1 $24.2

$25.3

$14

$16

$18

$20

$22

$24

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$28

3Q08-2Q09

4Q08-3Q09

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ACCENTURE'S TRAILING 12-MONTH REVENUE

SOURCE: ACCENTURE FINANCIALS AND TBR

TBR

FY09 FY10 FY11

$5.6 $5.4 $6.0 $6.1 $6.7 $6.5

$22.2

$26.3 $28.8

8.3%

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ACCENTURE'S NET REVENUE, GROWTH AND PROJECTIONS

Net RevenueRevenue Growth Year-to-year

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

TBR

TBR


The public sector will remain pressured in major economies, but the commercial sector will see global growth

Operating Group Performance and Strategies

CHT$1.4 billion22.5%YTY

CHT recorded substantial growth in consulting revenues spurred by demand for ERP and outsourcing in the communications field to enhance clients’ operational efficiency.

Financial Services $1.4 billion25.4% YTY

Financial Services grew in both outsourcing and consulting & SI in areas such as post-merger integration, operational effectiveness, risk and regulatory compliance and global operating models.

Health & Public Service (HPS)$1.0 billion4.8% YTY

HPS is seeing strong demand and growth in healthcare (e.g., connected health and electronic medical records), but the public sector remains challenged, especially in U.S. state and local, several countries in EMEA and the Americas. Repositioning of the public sector business with differentiated offerings, and more emphasis on the U.S. federal sector will help Accenture improve performance, albeit not in the near term.

Products$1.6 billion20.4% YTY

Products saw strong growth in consulting across all geographies and industries, led by consumer goods & services and automotive. Outsourcing grew across all geographies in air, freight & travel services and in retail in Americas and APAC.

Resources$1.3 billion27.9% YTY

Remained the fastest-growing operating group due to strong growth in consulting & SI driven by ERP programs to support clients’ global expansions and growth in outsourcing driven by ITO and F&A BPO.

Financial Model Strategy: Operating Groups

3.0%5.0%7.0%9.0%

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ACCENTURE'S OPERATING GROUP PROFITABLITY

Communications & High-Tech Financial ServicesHealth & Public Service ProductsResources

SOURCE: TBR AND ACCENTURE

TBR

$1.31 $1.27 $1.40 $1.37 $1.58 $1.45

$1.18 $1.16 $1.28 $1.27 $1.44 $1.39

$1.15 $1.12 $1.30 $1.27 $1.44 $1.42

$1.00 $1.01 $1.13 $1.17 $1.28 $1.22 $0.93 $0.86 $0.93 $0.96 $0.97 $0.97

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

Health & Public Service ResourcesFinancial Services Communications & High-TechProducts


TBR

TBR


Consulting & SI demand will continue to improve, driving near-term revenue benefits for AccentureService Line Performance and Strategies

Consulting & SI:$3.97 billion, up 23.0% year-to-year

• Consulting & SI saw strong growth in the resources vertical, as well as growth in financial services, communications & high-tech and products. Additional growth will come as demand intensifies with clients in major and emerging economies.

• Consulting will be driven by cost take-out, revenue growth, compliance and risk management, infrastructure virtualization and consolidation and cloud computing.

• SI will be driven by ERP (extend ERP for data management and analytics, supporting Accenture’s analytics agenda), application modernization, web development and technologies for wireless services and SaaS – a large focus area for Accenture in cloud.

Outsourcing: $2.75 billion, up 17.4% year-to-year

• Outsourcing remains driven by verticals, such as resources, communications & high-tech and financial services.

• Outsourcing will keep its momentum as clients focus on cost take-out and network and datacenter upgrades, creating new and add-on work for Accenture.

• Accenture’s ability to combine horizontal and industry-specific BPO with analytics to drive business outcomes will support BPO growth.

Financial Model Strategy

$3.22 $3.09 $3.57 $3.51 $3.97 $3.80

$2.35 $2.33$2.48 $2.54

$2.75 $2.70

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ACCENTURE SERVICE LINE REVENUE (IN $ MILLIONS)

Outsourcing C&SIC&SI YtY Growth Outsourcing YtY Growth


TBR

57.9% 57.1% 59.0% 58.0% 59.0% 58.5%

42.1% 42.9% 41.0% 42.0% 41.0% 41.5%

16.5% 15.0% 15.1% 14.0% 14.9% 15.0%

11.6% 10.7% 11.6% 11.0% 13.0% 13.0%0%

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

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ACCENTURE SERVICE LINE REVENUE AND PROFITABILITY

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

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

TBR

TBR


The FY11 operating margin target is well calculated, as the company absorbs higher costs due to hiring and business development activities

Expense Performance and Strategies2Q11 Operating Expenses: $1.3 billion

Cost of Revenue$4.4 billion

• Focus on efficiency and productivity in cost of services generated positive results in 2Q11.

• Gross margin in 2Q11 was lower than in 2Q10, due to lower contract profitability, as Accenture absorbed higher compensation and subcontractor costs, with higher pricing and better resource mix. Higher recruiting and training costs to address demand through hiring also diluted gross margin in 2Q11.

SG&A Expense$1.36 billion

Business development initiatives related to addressing improving demand and strengthening client relationships is boosting Accenture’s sales expenses. Despite strict G&A management, litigation costs of $75 million increased G&A as a percentage of revenue by 110 basis points.

Margins and Outlook

• As the pricing environment stabilizes, Accenture will be able to leverage its gross margin through higher pricing and create a more efficient resource mix.

• Business development efforts will push up sales expenses; this trend will continue as Accenture works toward its operating margin goal of 13.6% to 13.7% for FY11, which TBR believes is achievable.

Financial Model Strategy: Expenses

34.7% 34.0% 32.2% 31.7%34.4% 34.1%

14.4% 13.2% 13.7% 12.7% 14.1% 14.2%

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ACCENTURE'S GROSS AND OPERATING PROFITAND PROJECTIONS

Gross Margin Operating MarginSOURCE: TBR AND ACCENTURE

TBR

0.1% 0.0% 0.0% 0.0% 0.0% 0.0%

7.4% 8.0% 6.4% 7.2% 7.8% 7.0%

12.8% 12.9%12.1%

11.7% 12.4% 12.9%

-3.0%

2.0%

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12.0%

17.0%

22.0%

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

ACCENTURE'S OPERATING EXPENSES AS A PERCENTAGE OF SALES

Sales and Marketing General and AdministrativeReorganization cost (benefit)


TBR

TBR


Accenture’s continued emphasis on client relationships will maintain strong signings and revenue in the futureSales Strategy & Customer Segmentation

TBR AssessmentAccenture is strongly focused on building client relationships. The use of senior executives in the bulk of sales activities helps create long-lasting customer relations (e.g., diamond clients), account growth and revenue benefits.

Accenture’s Sales StrategyAccenture’s global sales organization is comprised of a traditional sales channel supported by a small direct sales channel.• Internal/Traditional sales channel: Responsible for the bulk of

Accenture’s sales. The sales function is tasked to the firm’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: Covers new clients with whom Accenture does not yet work, and is comprised of:o Equally small and direct sales team in BPO that targets SMBs. o Direct sales team in applications outsourcing (~80 sales directors)

and ITO that works with client 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.

Accenture’s Customer StructureAccenture defines its “diamond,” or “foundation,” clients as those with $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.• The United Kingdom, a key region for Accenture’s business, has ~20

diamond clients. Diamond clients are also located in emerging markets (e.g., four in Brazil, one in China – State Grid of China).

Go-to-Market & Services Strategies: Sales Strategy

Internal/Traditional Sales (Accenture’s Senior

Executives; 4,500 people)

Direct Sales (~150 people, TBR

estimate)

Outside Advisors

Accenture’s Sales Structure

ClientSOU

RCE:

ACC

ENTU

RE A

ND

TBR

TBR


Accenture’s Services Line Deep DiveTBR AssessmentConsulting & SI is seeing increased revenue contribution in 2Q11 driven by rising demand; however, Accenture has a well-balanced business mix that combines strong vertical expertise with high-value transformational offerings, implementation and cost-optimization capabilities. Accenture is able to target a wide range of clients and TBR believes sustained growth will follow as clients become more globalized and rely on Accenture's services to assist in that expansion.Service Lines Deep Dive Strategies• C&SI: Place strong emphasis on cost take-out, growth

and transformation, ERP, package enhancements and analytics to increase bookings

• ITO: Emphasize remote infrastructure management to accommodate strong demand as clients become increasingly adapted to transferring assets due to lighter capital costs (cost optimization is a key client priority)

• BPO: Offer BPO that has embedded insights, analytics and cloud to drive business value for the client, not just transformation. Expanding core BPO (horizontal – F&A, HR, etc.), industry-specific BPO and focus on growing in emerging markets

• AO: Bundle AO with other outsourcing services; provide client value and use IP for AO service delivery

Go-to-Market & Services Strategies: Service Line Deep Dive

ACCENTURE REPORTED 2Q11 SERVICE LINE DEEP DIVE

Industry-specific offerings allow Accenture to broaden its client base

C&SI, 59.0%

Outsourcing, 41.0%


C&SI, 59.0%

AO, 23.9%

ITO, 4.2%BPO, 12.9%

TBR


Go-to-Market & Product Strategies

Signings & Pipeline• Accenture’s strong offerings portfolio and global

capabilities will help it capture improving demand trends during coming quarters. TBR expects FY11 bookings to be closer to the high end of its expectations range of $25 billion to $28 billion.

• Consulting & SI demand continues to improve, with consulting signings growing 17.4% year-to-year in 2Q11 and more growth to come in 3Q11. Accenture has strong capabilities in all three areas, including management and technology consulting and SI. TBR expects this will drive more deal wins with clients in major and emerging markets, helping support near-term revenue performance.

• Accenture’s transformational capabilities and its mix of cost improvement and growth offerings will help it gain traction in consulting & SI as well as outsourcing. Demand for innovation will help the firm gain traction outside its core business in new business areas, such as cloud computing, analytics and mobility.

Signings growth will be driven by a combination of consulting & SI, outsourcing and new high-growth business areas

Key 2Q11 Customer WinsCompany TBR Assessment

NokiaFinland

Accenture took over Symbian software development from Nokia and rebadged 2,800 Nokia employees – a move that will give Accenture a bigger play in mobility and help the struggling Nokia remain relevant as the smartphone invasion continues.

Reliance EntertainmentIndia

This systems integration deal, in which Accenture will implement a digital rights management system for Reliance, showcases Accenture’s global strength in the media and entertainment sector and its ability to win clients in emerging regions.

-15%

-10%

-5%

0%

5%

10%

15%

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11Est.

TTM

Boo

king

s Ye

ar-t

o-ye

ar G

row

th

(In $

Mill

ions

)

ACCENTURE'S TTM NEW BOOKINGS AND Y/Y GROWTH

TTM Outsourcing TTM ConsultingYear-to-Year Growth


TBR

TBR


Pricing Environment & StrategiesAccenture’s market and pricing environment remains competitive; prices are now more stable across a broader share of its business and geographies, allowing the company to sustain its growth trajectory.

• TBR believes Accenture is starting to see pricing stability in the Americas, APAC and some countries in Europe (e.g., Germany, the Nordics). We believe the firm is able to test and push slight price increases with clients broadening their IT investments and looking to become more globalized.

• Pricing pressures still exist in regions that lag in economic recovery and have tight public sector spending (e.g., the Netherlands, the U.K., Spain).

• During 2Q11, Accenture continued to experience lower contract profitability year-to-year in consulting & SI and outsourcing. Accenture was unable to fully recover the higher annual compensation increases and subcontractor costs with better pricing and more efficient resource mix. TBR expects contract profitability will stabilize and improve in FY12 as the pricing environment further stabilizes and improves.

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.

Go-to-Market & Services Strategies: Pricing

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

Prices are stabilizing, but the pricing environment remains competitive, pushing Accenture to improve its resource mix to drive up profit levels

TBR


Acquisition AssessmentBased on its history of successful acquisitions integration, TBR believes Accenture will continue to look for small-scale acquisition opportunities that help expand its service offerings and global footprint. Accenture Acquisition Strategy• 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 has been successful at finding small, tuck-in acquisitions that can be incorporated into the business without disrupting its business structure.

• The acquired companies help Accenture fill gaps in its offerings and capabilities, augment its assets and drive overall competitive differentiation.

• Accenture has started to use acquisitions to expand in emerging geographies, such as the Middle East, to support its geographic spread.

Recent AcquisitionsAl Faisaliah Business & Technology Company • In June, Accenture announced that in a joint venture

with Al Faisaliah Group, it had acquired a majority stake in Al Faisaliah Business & Technology Company (FBTC), a Saudi Arabia-based IT services business.

• Accenture will strengthen its capabilities in the Middle East, a high-growth geography, by adding FBTC’s IT services and local knowledge of its customers.

• By integrating FBTC, Accenture will enhance its global capabilities in enterprise resource planning solutions and expand its client base in a key geography.

• The joint venture will allow for more client service offerings in the Middle East and help Accenture expand its relatively small business in the region.

Alliance & Acquisition Strategies

Accenture continued to make small tuck-in acquisitions in 2Q11, gaining market share in the Middle East

TBR


Alliance Assessment• TBR expects Accenture to further expand its

partnership base of technology developers, broadening its offerings with high-growth potential and vertical-specific solutions.

• Alliances will continue to play a large role by providing Accenture with a means to gain global traction for its services and to expand in high-growth areas.

Accenture Alliance Strategy• Accenture’s internal organization, the Accenture

Alliances Group, has 300 dedicated alliance professionals and is responsible for forming alliances and partnerships to provide the company with new channels, incremental revenue streams and access to emerging technologies.

• Alliances complement and extend Accenture’s solutions and capabilities.

• Alliances and partners are centered around the company’s client service business (consulting, SI, outsourcing, etc.). The company has an alliance network of more than 150 partners.

Recent AlliancesSAPAccenture and SAP announced an expansion of their alliance in which the two companies will jointly develop an enterprise mobility solution focused on three industries—oil and gas, utilities and consumer products. This partnership expands Accenture’s service offerings in the rapidly growing enterprise mobility market.

Panasonic• In June, Accenture announced it would work with

Panasonic and seven other companies on the “Fujisawa Sustainable Smart Town” project to develop a smart city in Fujisawa, Japan that will gain its intelligence through infrastructure and services.

• TBR believes this alliance will improve Accenture’s foothold in the growing green energy market. Accenture will leverage its experience with city and power grid projects to develop energy-efficient services within the town.

Alliance & Acquisition Strategies

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

TBR


Accenture’s geographic expansion strategy is based on growth in emerging markets and sustained market share in the U.S. and EMEAGeographic Revenue Strategies

United States/Americas$2.9 billion

The region is benefiting from improving economic growth in North America, particularly in the commercial sector. Revenue growth in the region was led by the U.S., Canada and Brazil, showing Accenture’s strength in both mature and emerging geographies. Growth in health, financial services, energy and natural resources helped offset declines in the Public Service sector.

EMEA$2.9 billion

EMEA is now on a growth trajectory with a pipeline that will turn into deals in the near term. Growing local economies are supporting business in the region. Growth was reported in the U.K., Germany, France, Italy, Switzerland and South Africa. Accenture works with large multinational clients in Europe that have global operations and are not as affected by economic pressures and budget deficit challenges.

APAC$865 million

APAC continues to be Accenture’s smallest revenue contributor, but saw growth in major and emerging economies in the region (Australia, Japan, Singapore, China, Malaysia and India), as well as gains in health and retail sectors in APAC.

Emerging Markets

Accenture is expanding beyond BRIC into South Korea, Mexico, Turkey, South Africa and the Middle East with a focus on growing revenue from $3 billion in FY10/11 to $6 billion in FY15.

Geographic Analysis

-20%-15%-10%

-5%0%5%

10%15%20%

2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11Est.N

et R

even

ue G

rwot

h Se

quen

tially

ACCENTURE'S SEQUENTIAL GROWTH BY GEOGRAPHY

Americas Sequential Growth EMEA Sequential GrowthAPAC Sequential Growth


TBR

-30.0%-20.0%-10.0%0.0%10.0%20.0%30.0%40.0%50.0%

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11Est.

Axis Title

Reve

nue

Grow

th Y

ear-

to-Y

ear

Net

Rev

enue

in $

Billi

ons

ACCENTURE'S REVENUE AND YtY GROWTH BY GEOGRAPHY

Asia Pacific EMEAAmericas Americas YtY GrowthEMEA YtY Growth APAC YtY Growth


TBR

TBR


Hiring onshore and offshore will help Accenture grow in the long termHeadcount Strategies & Investments

• Combine near/offshore service delivery with industrialization (i.e., use methods, processes, tools) to support profitability. Accenture has leading capabilities in that aspect, closely following IBM, which has a similar focus.

• Augment global network of analytics innovation centers with new locations in Barcelona (50 people) and Dublin (100 people) to capture growth opportunities.

• Expand GDN with new centers in the Philippines, Brazil and South Korea, allowing Accenture to obtain more clients, both international and local, to drive emerging market growth.

• Accenture’s total headcount continues to expand, driven by increased hiring activities both onshore and near/offshore as the company focuses on capturing demand.

• Notably, Consulting & Solutions headcount (i.e., pure Consulting, SI and Technology employees) rose 22.5% year-to-year. Accenture is emphasizing recovering areas that need more people to address business coming in.

• GDN headcount increased 21.7% year-to-year and now accounts for 58.2% of total headcount. Accenture will expand its GDN to provide global delivery and work with local clients.

• Accenture will add approximately 2,800 Nokia employees this October as part of an outsourcing deal between the two companies.

Resource Management Strategy: Headcount

~21% of people are in North America

~43% of people are in APAC

~31% of people are in EMEA

~5% of people are in South

America

Total headcount in 2Q11: 223,305

104,842 108,705

85,600114,600

0

50,000

100,000

150,000

200,000

250,000

2Q10 2Q11

Tota

l Hea

dcou

nt

Calendar Quarter

ACCENTURE'S HEADCOUNT

Nearshore & OffshoreHeadcount

Other GDN locationsand onshore

Total headcount: 223305 (+17.3% YTY)

TBR


TBR


Accenture continues to improve its top-management structure to drive innovation and growth

Efficiency Performance• Accenture is managing utilization through hiring, allowing the

company to gain capacity to address demand and maintain high service quality. Though utilization is down year-to-year, it remains within targeted 85% levels as a result of hiring to expand the GDN, as well as onshore hiring to address improving demand for consulting & SI.

• Attrition levels fell year-to-year, as Accenture is adjusting compensation per skill set and geography to attract and retain resources.

• Revenue per employee fell year-to-year, as Accenture’s hiring efforts continued to outpace revenue growth in 2Q11.

• Operating income per employee increased year-to-year, driven by Accenture’s increased reliance on offshore (GDN) resources and tools for service delivery.

Organizational Changes• In June, Accenture announced Jorge Benitez will

take over as managing director in North America and chief executive in the United States, effective in September. Benitez will succeed Robert Frerichs, who will assume a new role to work with Accenture’s CEO, Pierre Nanterme, on strategic initiatives.

• In response to Don Rippert’s retirement from Accenture, Paul Daugherty and Gavin Michael have been appointed Chief Technology Architect and Chief Technology Innovation Officer, respectively. The two new executives will share the responsibilities of the former chief technology officer and managing director of technology, effective in July.

Resource Management Strategy: Efficiency & Org. Changes

2Q10 2Q11

Revenue per Employee 117,368$ 113,602$ ↓Operating Income per Employee 14,457$ 15,286$ ↑Utilization 88.0% 85.0% ↓Turnover 17.0% 15.0% ↓

Accenture's Efficiency Metrics (In $) TBR

TBR


Income Statement

ACCENTUREConsolidated Statement of Income(in $ Thousands Except Share Data)Ca lendar Period May '10 Aug. '10 Nov. '10 Feb. '11 May '11 Aug. '11 May '10 Aug. '10 Nov. '10 Feb. '11 May '11 Aug. '11 May '10 Aug. '10 Nov. '10 Feb. '11 May '11 Aug. '11CALENDAR QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est. 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est. 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est.FISCAL QUARTER 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Est. 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Est. 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Est.Revenues 5,975,495$ 5,833,073$ 6,478,193$ 6,496,293$ 7,204,355$ 6,975,060$ 107.3% 107.6% 107.2% 107.3% 107.2% 107.3% 7.9% 6.0% 12.7% 17.3% 0.0% 19.6%

Reimbursements 404,478 412,492 432,543 442,672 484,240 475,060 7.3% 7.6% 7.2% 7.3% 7.2% 7.3% 3.1% 14.7% 18.5% 22.5% 0.0% 15.2%

Net Sales (Revenues before Reimbursements) 5,571,017$ 5,420,581$ 6,045,650$ 6,053,621$ 6,720,115$ 6,500,000$ 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 8.3% 5.3% 12.3% 16.9% 20.6% 19.9%

Cost of Services 3,639,367 3,575,769 4,101,170 4,136,397 4,410,487 4,283,500 65.3% 66.0% 67.8% 68.3% 65.6% 65.9% 4.7% 2.6% 14.0% 18.7% 21.2% 19.8%

Gross Profit 1,931,650 1,844,812 1,944,480 1,917,224 2,309,628 2,216,500 34.7% 34.0% 32.2% 31.7% 34.4% 34.1% 15.6% 11.1% 9.0% 13.4% 19.6% 20.1%

Sales and Marketing 714,487 698,325 731,471 709,779 832,374 840,572 12.8% 12.9% 12.1% 11.7% 12.4% 12.9% 36.1% 26.5% 17.6% 13.9% 16.5% 20.4%

General and Administrative 410,057 432,793 385,726 435,499 527,442 455,000 7.4% 8.0% 6.4% 7.2% 7.8% 7.0% -0.1% 0.0% -6.4% 5.4% 28.6% 5.1%

Selling, General and Administrative Expenses 1,124,544 1,131,118 1,117,197 1,145,278 1,359,816 1,295,572 20.2% 20.9% 18.5% 18.9% 20.2% 19.9% 20.2% 14.9% 8.0% 10.5% 20.9% 14.5%

Reorganization cost (benefit) 3,276 60 348 369 396 100 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 3.1% -98.3% -90.2% -86.0% -87.9% 66.7%

Operating Expenses 1,127,820 1,131,178 1,117,545 1,145,647 1,360,212 1,295,672 20.2% 20.9% 18.5% 18.9% 20.2% 19.9% 20.2% -8.8% 7.7% 10.2% 20.6% 14.5%

Operating Income 803,830 713,634 826,935 771,577 949,416 920,828 14.4% 13.2% 13.7% 12.7% 14.1% 14.2% 9.8% 70.1% 10.8% 18.5% 18.1% 29.0%

Interest Income and Other, Net (550) 2,960 17,693 2,570 8,433 6,569 0.0% 0.1% 0.3% 0.0% 0.1% 0.1% -103.5% 2.2% 103.4% 122.2% 1633.3% 121.9%

Income before Taxes 803,280 716,594 844,628 774,147 957,849 927,397 14.4% 13.2% 14.0% 12.8% 14.3% 14.3% 7.4% 69.6% 11.9% 21.1% 19.2% 29.4%

Provisions for Taxes 239,761 206,331 239,072 208,397 258,780 251,653 4.3% 3.8% 4.0% 3.4% 3.9% 3.9% 13.5% 77.1% 3.8% 17.4% 7.9% 22.0%

Net Income before Minority Interest 563,519 510,263 605,556 565,750 699,069 675,744 10.1% 9.4% 10.0% 9.3% 10.4% 10.4% 5.0% 66.8% 15.4% 22.5% 24.1% 32.4%

Minority Interest (72,922) (64,781) (70,842) (62,733) (71,056) (75,003) -1.3% -1.2% -1.2% -1.0% -1.1% -1.2% 21.2% -26.3% 11.4% -1.0% 2.6% -15.8%

Net Income 490,597$ 445,482$ 534,714$ 503,017$ 628,013$ 600,741$ 8.8% 8.2% 8.8% 8.3% 9.3% 9.2% 10.5% 74.9% 20.2% 25.8% 28.0% 34.9%

Net Earnings per Share of Common Stock 0.73$ 0.66$ 0.81$ 0.75$ 0.93$ n/a

Common Shares Outstanding 767,162,321 758,133,742 742,961,409 742,852,436 745,503,329 n/a

SOURCE: ACCENTURE

AS A PERCENTAGE OF REVENUE YEAR-TO-YEAR CHANGE

TBR


Balance SheetACCENTUREConsolidated Balance Sheets (in $ Thousands)

CALENDAR QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11FISCAL QUARTER 3Q10 4Q10 1Q11 2Q11 3Q11ASSETSCurrent Assets

Cash and Equivalents 4,312,111 4,838,292 4,160,452 4,677,544 5,256,684

Short-Term Investments 8,094 2,987 3,164 5,192 4,665

Accounts Receivable 2,350,493 2,534,598 2,846,561 3,072,103 3,272,697

Unbilled Services 1,165,857 1,127,827 1,354,854 1,373,376 1,423,468

Other (Deferred Income Taxes, etc.) 1,006,835 1,059,921 1,104,679 1,151,062 1,189,746

Total Current Assets 8,843,390 9,563,625 9,469,710 10,279,277 11,147,260

Property, Plant, Equip. (Net of Dep.) 625,534 659,569 673,697 694,788 740,771

Other Non-Current Assets 2,448,734 2,612,059 2,725,467 2,919,608 3,015,938

Total Assets 11,917,658$ 12,835,253$ 12,868,874$ 13,893,673$ 14,903,969$

LIABILITIES AND EQUITYCurrent Liabilities

Short-Term Borrowings 573$ 143$ 332$ 422$ 4,621$

Accounts Payable 683,094 885,328 824,354 846,365 862,651

Employee Compensation and Benefits 2,409,544 2,683,492 2,691,323 2,495,790 2,931,210

Deferred Revenues 1,688,069 1,772,833 1,769,439 2,114,235 2,162,514

Other Current Liabilities 1,047,774 1,225,808 1,161,403 1,160,284 1,411,670 Total Current Liabilities 5,829,054$ 6,567,604$ 6,446,851$ 6,617,096$ 7,372,666$

LT Debt, Net of Current 198 1,445 - 4,129 -

Other Non-current Liabilities 2,627,006 2,991,481 3,110,913 3,224,677 3,354,871

Total Liabilities 8,456,258$ 9,560,530$ 9,557,764$ 9,845,902$ 10,727,537$ Total Stockholders' Equity 3,461,400$ 3,274,723$ 3,311,110$ 4,047,771$ 4,176,432$

Total Liabilities & Equity 11,917,658$ 12,835,253$ 12,868,874$ 13,893,673$ 14,903,969$

FINANCIAL RATIOSDays Sales Outstanding 37.97 42.08 42.38 45.67 43.83

Fixed Asset Turnover 35.03 33.74 36.28 35.39 37.45

Days Cash Outstanding 69.79 80.38 61.98 69.62 70.46

Total Asset Turnover 1.87 1.75 1.88 1.81 1.87

Debt/Asset Ratio 0.71 0.74 0.74 0.71 0.72

Current Ratio 1.52 1.46 1.47 1.55 1.51

Return on Assets 13.2% 14.6% 15.2% 15.6% 15.9%

Return on Equity 48.0% 52.8% 55.7% 56.3% 57.8%SOURCE: ACCENTURE

TBR

TBR


Appendix – Financial Models

CALENDAR QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est.FISCAL QUARTER 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Est.NET REVENUE (IN $ MILLIONS)Consulting & Systems Integration 3,225$ 3,094$ 3,568$ 3,509$ 3,966$ 3,803$

Outsourcing 2,346$ 2,326$ 2,478$ 2,544$ 2,754$ 2,698$

Total Net Revenue 5,571$ 5,421$ 6,046$ 6,054$ 6,720$ 6,500$ AS A PERCENTAGE OF REVENUEConsulting & Systems Integration 57.9% 57.1% 59.0% 58.0% 59.0% 58.5%

Outsourcing 42.1% 42.9% 41.0% 42.0% 41.0% 41.5%YEAR-TO-YEAR CHANGE (IN U.S. DOLLARS)Consulting & Systems Integration 9.1% 6.2% 14.3% 19.7% 23.0% 22.9%

Outsourcing 7.1% 4.2% 9.5% 13.4% 17.4% 16.0%

Total Net Revenue 8.3% 5.3% 12.3% 16.9% 20.6% 19.9%SEQUENTIAL CHANGEConsulting & Systems Integration 10.0% -4.0% 15.3% -1.6% 11.1% 8.3%

Outsourcing 4.6% -0.9% 6.5% 2.7% 11.2% 6.0%

Total Net Revenue 7.6% -2.7% 11.5% 0.1% 11.2% 7.4%SOURCE: TBR AND ACCENTURE

ACCENTURE'S SERVICE LINE REVENUE TBR

TBR



CALENDAR QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est.FISCAL QUARTER 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Est.NET REVENUE (IN $ THOUSANDS)Communications & High-Tech 1,178,355$ 1,164,475$ 1,284,476$ 1,274,449$ 1,443,188$ 1,394,900$

Financial Services 1,149,863$ 1,115,259$ 1,301,118$ 1,265,620$ 1,441,626$ 1,417,000$

Health & Public Service 926,618$ 856,109$ 931,600$ 964,612$ 971,277$ 968,500$

Products 1,307,903$ 1,267,809$ 1,396,041$ 1,373,646$ 1,575,184$ 1,496,950$

Resources 1,004,056$ 1,013,513$ 1,128,317$ 1,171,016$ 1,284,116$ 1,218,750$

Other 4,222$ 3,416$ 4,098$ 4,278$ 4,724$ 3,900$

Total 5,571,017$ 5,420,581$ 6,045,650$ 6,053,621$ 6,720,115$ 6,500,000$ AS A PERCENTAGE OF REVENUECommunications & High-Tech 21.2% 21.5% 21.2% 21.1% 21.5% 21.5%

Financial Services 20.6% 20.6% 21.5% 20.9% 21.5% 21.8%

Health & Public Service 16.6% 15.8% 15.4% 15.9% 14.5% 14.9%

Products 23.5% 23.4% 23.1% 22.7% 23.4% 23.0%

Resources 18.0% 18.7% 18.7% 19.3% 19.1% 18.8%

Other 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%YEAR-TO-YEAR CHANGECommunications & High-Tech 2.0% 4.2% 10.8% 14.8% 22.5% 19.8%


Health & Public Service 2.8% -9.0% -1.6% 13.3% 4.8% 13.1%

Products 13.7% 13.0% 15.9% 13.9% 20.4% 18.1%

Resources 11.0% 7.5% 17.0% 26.0% 27.9% 20.3%

Other -25.0% -44.0% -7.8% 44.3% 11.9% 14.2%SEQUENTIAL CHANGECommunications & High-Tech 6.1% -1.2% 10.3% -0.8% 13.2% -3.3%

Financial Services 6.8% -3.0% 16.7% -2.7% 13.9% -1.7%

Health & Public Service 8.8% -7.6% 8.8% 3.5% 0.7% -0.3%

Products 8.5% -3.1% 10.1% -1.6% 14.7% -5.0%

Resources 8.0% 0.9% 11.3% 3.8% 9.7% -5.1%

Other 42.4% -19.1% 20.0% 4.4% 10.4% -17.4%OPERATING MARGINCommunications & High-Tech 14.3% 13.8% 15.0% 11.8% 13.6% 12.2%


Health & Public Service 8.0% 4.7% 6.2% 9.3% 7.2% 10.2%

Products 14.1% 11.9% 11.3% 9.2% 12.1% 11.4%

Resources 17.5% 16.8% 15.4% 17.2% 18.0% 16.0%OPERATING INCOMECommunications & High-Tech 168,166$ 160,598$ 193,241$ 150,445$ 195,631$ 170,178$

Financial Services 201,235$ 191,382$ 244,581$ 204,214$ 262,180$ 240,890$

Health & Public Service 74,530$ 40,219$ 57,783$ 89,569$ 70,363$ 98,787$

Products 183,780$ 151,129$ 157,261$ 125,785$ 190,501$ 170,321$

Resources 176,119$ 170,306$ 174,069$ 201,564$ 230,741$ 195,000$

Total 803,830$ 713,634$ 826,935$ 771,577$ 949,416$ 875,176$ SOURCE: TBR AND ACCENTURE

ACCENTURE'S OPERATING UNITS REVENUE AND INCOME TBR

TBR



CALENDAR QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est.FISCAL QUARTER 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Est.NET REVENUE (IN $ MILLIONS)Americas 2,513$ 2,520$ 2,633$ 2,675$ 2,921$ 2,860$ EMEA 2,433$ 2,213$ 2,638$ 2,592$ 2,935$ 2,730$ Asia Pacific 625$ 688$ 775$ 787$ 865$ 910$ Total 5,571$ 5,421$ 6,046$ 6,054$ 6,720$ 6,500$ AS A PERCENTAGE OF REVENUEAmericas 45.1% 46.5% 43.6% 44.2% 43.5% 44.0%EMEA 43.7% 40.8% 43.6% 42.8% 43.7% 42.0%Asia Pacific 11.2% 12.7% 12.8% 13.0% 12.9% 14.0%YEAR-TO-YEAR CHANGE (IN U.S. DOLLARS)Americas 11.0% 11.3% 18.1% 21.4% 16.2% 13.5%EMEA 3.9% -2.7% 3.4% 8.6% 20.6% 23.3%Asia Pacific 15.9% 13.1% 28.4% 34.1% 38.4% 32.4%SEQUENTIAL CHANGEAmericas 14.1% 0.3% 4.5% 1.6% 9.2% -2.1%EMEA 1.9% -9.0% 19.2% -1.7% 13.2% -7.0%Asia Pacific 6.5% 10.1% 12.7% 1.5% 9.9% 5.2%SOURCE: TBR AND ACCENTURE

ACCENTURE'S GEOGRAPHIC REVENUE TBR

TBR



CALENDAR QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Est.Net Revenue 5,571,017$ 5,420,581$ 6,045,650$ 6,053,621$ 6,720,115$ 6,500,000$

Operating Expenses 1,127,820$ 1,131,178$ 1,117,545$ 1,145,647$ 1,360,212$ 1,295,672$

Sales & Marketing Expense 714,487$ 698,325$ 731,471$ 709,779$ 832,374$ 840,572$

General and Administrative Expense 410,057$ 432,793$ 385,726$ 435,499$ 527,442$ 455,000$

R&D Expense 87,557$ 85,193$ 95,017$ 95,142$ 105,617$ 102,157$

Restructuring Costs 3,276$ 60$ 348$ 369$ 396$ 100$ SALES AND MARKETING EXPENSE BREAKOUT (IN $ THOUSANDS)Sales Expense 680,373$ 665,555$ 696,013$ 674,290$ 782,432$ 790,138$

Marketing Spending 34,114$ 32,770$ 35,458$ 35,489$ 49,942$ 50,434$

Advertising 18,395$ 17,898$ 20,500$ 20,000$ 21,000$ 21,000$

Total Sales and Marketing Expense 714,487$ 698,325$ 731,471$ 709,779$ 832,374$ 840,572$ SPENDING AS A PERCENTAGE OF REVENUE Total Operating Expenses 20.2% 20.9% 18.5% 18.9% 20.2% 19.9%

Sales and Marketing Expense 12.8% 12.9% 12.1% 11.7% 12.4% 12.9%

Sales Expense 12.2% 12.3% 11.5% 11.1% 11.6% 12.2%

Marketing Spending 0.6% 0.6% 0.6% 0.6% 0.7% 0.8%

Advertising 0.33% 0.33% 0.34% 0.33% 0.31% 0.32%

General and Administrative 7.4% 8.0% 6.4% 7.2% 7.8% 7.0%

Restructuring Costs 0.1% 0.0% 0.0% 0.0% 0.0% 0.0%CORPORATEWIDE HEADCOUNTSales 4,500 4,460 4,460 4,460 4,460 4,460

General and Administrative 13,732 14,154 14,342 14,484 14,742 17,467

Total Employees 190,442 203,860 210,951 215,388 223,305 231,500SOURCE: TBR ESTIMATES AND ACCENTURE FINANCIALS

ACCENTURE OPERATING EXPENSE MODEL (IN $ THOUSANDS) TBR

TBR



65,911 84,791

62,38468,562

48,415

55,21013,732

14,742

0

50,000

100,000

150,000

200,000

2Q10 2Q11

Tota

l Hea

dcou

nt

Calendar Quarter

ACCENTURE'S HEADCOUNT

Enterprise

Consulting

Services

Solutions

Total headcount: 223305 (+17.3% YTY)

TBR


CALENDAR QUARTER 2Q10 3Q10 4Q10 1Q11 2Q11FISCAL QUARTER 3Q10 4Q10 1Q11 2Q11 3Q11Consulting 48,415 50,181 51,955 53,636 55,210

Solutions 65,911 75,791 79,028 80,814 84,791

Total Consulting & Solutions 114,326 125,972 130,983 134,450 140,001

Services 62,384 63,734 65,626 66,454 68,562

Total Billable 176,710 189,706 196,609 200,904 208,563

Enterprise 13,732 14,154 14,342 14,484 14,742

Total Headcount 190,442 203,860 210,951 215,388 223,305


ACCENTURE'S HEADCOUNT BREAKDOWN TBR

TBR


Financial Strategy GraphsAppendix – Graphs

0.71 0.74 0.74 0.71 0.72

0.00

0.20

0.40

0.60

0.80

1.00

2Q10 3Q10 4Q10 1Q11 2Q11

DEBT/ASSET RATIO

ACCENTURE PSBQ AVERAGE


TBR

1.52 1.46 1.471.55 1.51

0.00

0.50

1.00

1.50

2.00

2Q10 3Q10 4Q10 1Q11 2Q11

CURRENT RATIO



TBR

14.4%13.2% 13.7%

12.7%14.1%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

2Q10 3Q10 4Q10 1Q11 2Q11

OPERATING MARGIN


TBR


TBR


Financial Strategy GraphsAppendix – Graphs

48.0%

52.8% 55.7% 56.3% 57.8%

0.0%

20.0%

40.0%

60.0%

2Q10 3Q10 4Q10 1Q11 2Q11

RETURN ON EQUITY



TBR

13.2%14.6% 15.2% 15.6% 15.9%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

2Q10 3Q10 4Q10 1Q11 2Q11

RETURN ON ASSETS



TBR

TBR


Go-to-Market GraphsAppendix – Graphs

$5,571 $5,421 $6,046 $6,054 $6,720

$1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000

2Q10 3Q10 4Q10 1Q11 2Q11

In $

Mill

ions

ACCENTURE REVENUE



TBR

8.3%

5.3%

12.3%

16.9% 19.9%

0.0%

10.0%

20.0%

2Q10 3Q10 4Q10 1Q11 2Q11

ACCENTURE REVENUE GROWTH



TBR

2.43 2.49 2.49 2.44 2.39

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2Q10 3Q10 4Q10 1Q11 2Q11

ACCENTURE BACKLOG/REVENUE RATIO



TBR

37.97 42.08 42.38 45.67 43.83

0.00

15.00

30.00

45.00

60.00

75.00

2Q10 3Q10 4Q10 1Q11 2Q11

Num

ber o

f Day

s

ACCENTURE DAYS SALES OUTSTANDING



TBR

TBR


Resource Management GraphsAppendix – Graphs

20.2% 20.9% 18.5% 18.9% 20.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2Q10 3Q10 4Q10 1Q11 2Q11

ACCENTURE OPERATING EXPENSES AS A PERCENTAGE OF SALES



TBR

$117.4 $114.7 $112.9 $112.6 $113.6

$0.0

$50.0

$100.0

$150.0

$200.0

2Q10 3Q10 4Q10 1Q11 2Q11

In $

Tho

usan

ds

ACCENTURE REVENUE PER EMPLOYEE



TBR

34.7% 34.0% 32.2% 31.7% 34.4%

0.0%

10.0%

20.0%

30.0%

40.0%

2Q10 3Q10 4Q10 1Q11 2Q11

ACCENTURE GROSS MARGIN



TBR

TBR


Resource Management GraphsAppendix – Graphs

88% 86% 87% 86% 85%

0%

20%

40%

60%

80%

100%

2Q10 3Q10 4Q10 1Q11 2Q11

ACCENTURE UTILIZATION RATE



TBR

17% 17% 15% 14% 15%

0%

4%

8%

12%

16%

20%

2Q10 3Q10 4Q10 1Q11 2Q11

ACCENTURE TURNOVER RATE



TBR

$14.5 $15.5 $15.2 $15.2 $15.3

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

2Q10 3Q10 4Q10 1Q11 2Q11

In $

Tho

usan

ds

ACCENTURE OPERATING INCOME PER EMPLOYEE



TBR

TBR


Accenture’s Recent Acquisitions

COMPANY ACQUISITION DATE ACQUISITION SYNERGIES

ESTIMATED NO. OF EMPLOYEES

Al Faisaliah Business & Technology Company

June2011

Accenture bought a majority share in this joint venture with Al Faisaliah Group and strengthened its consulting, enterprise, SI and IT services business in the Middle East.

N/A

CAS Computer Anwendungs-und Systemberatung AG

January 2011

CRM and mobility software for the consumer products industry that 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, strengthens 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. June2010

Enhance vertical analytics (CadenceQuest provides customer data and analytics for the retail sector) 35

RiskControl (Brazil) February2010

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

Nokia’s Symbian Professional Svcs. Operations

October 2009

Consulting services for mobile operating systems; embedded software services for mobile devices 165

Appendix – Tables

TBR


Accenture’s Portfolio of Services 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

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

TBR


Accenture’s Recent Services Announcements

SERVICE/SOLUTION DATE DESCRIPTION

2Q11

Accenture Foundation Platform for Oracle

June 2011

The second version of a software program is integrated with Oracle Fusion Middleware that speeds up the process of integrating and developing solutions.

Social Media Engagement Manager

June 2011

Pinpoints the best ways for companies to engage clients through social media outlets, mainly Facebook. The solution allows companies to better reach target audiences by measuring the level of engagement customers have with clients.

Accenture Life Insurance Platform May 2011 Accenture has updated its life insurance software platform to help companies

lower operating costs and better compete in the global environment.

Accenture Claim and Policy Components May 2011

Enhanced claims and policy administration software platforms with increased configurability and multi-channel support to help property and casualty (P&C) insurers react more quickly to changing market conditions and customers’ evolving needs.

1Q11

Digital Mail March 2011

Expanded line of postal services with a digital mail offering; Digital mail is a digital version of printed mail delivered to an online mailbox. Accenture will be partnering with postal agencies to offer digital post services to citizens.

Appendix – Tables

TBR




Datacenter optimization and virtualization services

February 2011

Expanding partnership agreement with NetApp to develop offerings related to datacenter virtualization, application optimization and cloud-based service delivery.

Accenture Public Health Platform (APHP)

January 2011

Accenture will combine its SI capabilities with Plexis’ software to offer APHP, a comprehensive, integrated solution for managing Medicaid processes.

4Q10

Accenture Digital Supply Chain Platform

December 2010

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.

Mobile smartphone solutions December 2010

NHN Corporation, a leading South Korean Internet service provider, will partner with Accenture to introduce a suite of mobile services for NHN’s Naver mobile search engine.

Business service management solutions

November 2010

In an expansion of their partnership, BMC Software and Accenture will team to develop and deliver an integrated, end-to-end IT automation and management platform designed for cloud environments.

3Q10

Datacenter virtualization and collaboration

September 2010

Accenture and Cisco are expanding their relationship to offer core BPO services designed around collaboration and virtualization service delivery to firms in South Africa.

Appendix – Tables

TBR




2Q10

Sales and Marketing transformation solutions May 2010

Partnering with XTEL, a European provider of sales automation solutions, Accenture will offer systems integration services for an end-to-end solution for transforming organizational sales and marketing processes.

Public center pension solution April 2010

Along with CedarCrestone, a provider of implementation services, Accenture will offer its expertise to support Oracle’s development of its Public Sector Pension Solution.

1Q10

SAP application management service

February 2010

Along with Verizon Business, Accenture will offer an end-to-end service for managing SAP applications and its corresponding network structures.

Child welfare and protective services solution

January 2010

Working with Oracle, Accenture will offer a comprehensive, integrated case management solution for child welfare agencies.

Appendix – Tables

TBR


CLIENT DATE DESCRIPTION YEARS CONTRACT VALUE

2Q11

CF Industries HoldingsUSA

June 2011 Accenture will provide consulting and SI, plan, analyze, test, and deploy SAP software for the ERP platform which will allow CF Industries to improve operations and increase data access.

N/A N/A

Reliance Entertainment Ltd.India

June 2011Accenture will provide SI services to implement digital rights management software allowing Reliance to automate functions and handle more transactions.

N/A N/A

AscendiPortugal May 2011

Accenture has provided Ascendi with a commercial back-office system that will sustain the tolling system in Portugal, and consolidated the legacy operation of both electronic and cash toll collection of two additional toll roads.

5 N/A

Navy Mutual Aid AssociationUSA

May 2011Accenture will provide a life insurance policy administration solution to replace existing systems to improve Navy Mutual Aid’s efficiency.

N/A N/A

Anheuser-Busch InBevRussia

April 2011

Accenture will implement a digital merchandising solution that will enable Anheuser-Busch to better track sales data and improve product sales by helping to avoid time-consuming data collection, and generating instant information for sales reps.

N/A N/A

Accenture’s Quarterly SigningsAppendix – Tables

TBR


Accenture’s Quarterly SigningsCLIENT DATE DESCRIPTION YEARS CONTRACT

VALUE2Q11

RSAUnited Kingdom

April 2011

Contract extension to provide insurance process BPO services, including portions of RSA’s sales and service, claims, finance and commercial administration functions that support RSA’s direct, affinity and broker customers.

4 N/A

Marathon Petroleum CompanyUnited States

April 2011

Accenture is deploying its Life Safety Solution at client’s refinery in Robinson, Ill. The gas and chemical hazard solution utilizes wireless technology to connect and alert workers of potentially hazardous environments.

N/A N/A

NokiaFinland

April 2011

Nokia will outsource its Symbian software development and support services to Accenture, allowing it to better serve client’s growing demand for mobility services.

5 N/A

1Q11

CEVA Logistics Netherlands

March 2011

Accenture will provide BPO and financial services through its GDN as it utilizes delivery centers in India, Romania, and Argentina to deliver support.

5 N/A

Banco Bilbao Vizcaya Argentaria (BBVA)Spain

March 2011

Accenture will implement its core banking solution, Alnova Financial Solutions, improving BBVA’s efficiency and ability to retain customers.

N/A N/A

CEVA LogisticsNetherlands

March 2011

Accenture will provide BPO and management consulting services to CEVA, aiding in cost management, and consistency in business processes.

5 N/A

Appendix – Tables

TBR



Ministry of JusticeUnited Kingdom

March 2011

Accenture will implement a shared services solution to support HR management, payroll, finance and procurement services improving the speed and accuracy of the Enterprise Resource Planning system.

5 N/A

Israel Electric CorporationIsrael

March 2011

Accenture will provide IEC with Consulting & SI services on six projects, including roadmaps, application systems, a smart electrical grid, business intelligence, enterprise architecture and business continuity.

2 N/A

City of London CorporationUnited Kingdom

March 2011

Accenture will develop and implement a shared service center for the city’s procurement and sourcing functions. 5 N/A

Consip SpaItaly

February 2011

Accenture will develop, build and maintain an eProcurement system to support the Italian government‘s overall procurement operations.

4 $6 million

Lan CargoUnited States

February 2011

Accenture will implement a cargo reservation solution to streamline Lan Cargo’s order fulfillment processes. N/A N/A

Carlsberg BreweriesDenmark

January 2011

Accenture will support Carlsberg’s companywide IT infrastructure transformation through a variety of C&SI, application development, and SAP and Oracle implementation services.

5 N/A

Accenture’s Quarterly SigningsAppendix – Tables

TBR



VALUE4Q10

Nagaland State GovernmentIndia

December 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 CompanySaudi Arabia

December 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 ServicesUnited States

December 2010

Accenture’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 ABSweden

November 2010

Accenture 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

TBR


Accenture’s Quarterly Signings


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 CompanyUnited 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 MediterráneoSpain

October 2010

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

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

Appendix – Tables

TBR




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.

Multiyear N/A

Zurich Financial Services GroupSwitzerland

October 2010

Zurich 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 States

September 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

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

Appendix – Tables

TBR



VALUE

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 GroupAustralia

September 2010

Accenture 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 States

September 2010

Accenture was 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 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

Appendix – Tables

TBR




University of North Texas System (UNTS)United States

August 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 HealthSingapore

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 a unique ID number.

2 N/A

Sun Life Assurance Company of CanadaCanada

July 2010Provide 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

Appendix – Tables

TBR



VALUE2Q10

AspreaUnited Kingdom

June 2010Applications 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 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 (ERM) system to improve the efficiency of the processes for financial management in two phases.

8 $30 million

U.S. NavyUnited States June 2010 Accenture was 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 MichiganUnited States

May 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

Appendix – Tables

TBR




Media Prima BerhadMalaysia

May 2010Accenture 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 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 to improve customer service and reduce costs.

N/A N/A

Electrolux IT Solutions ABSweden

April 2010Accenture 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 partner to market IT solutions and services to other banks, insurers and other financial service companies throughout South Korea.

8 $80 million

Telefonica GroupArgentina

April 2010Accenture 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 TechnologyIntecNokiaOpen Text Telcordia TechnologiesVendavoXign The Hackett GroupPanasonic

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Major Accenture Alliances

COMPANY SCOPE OF PARTNERSHIP

Oracle Oracle’s Fusion Middleware was integrated into the Accenture Communications Solutions suite. The partnership targets the telecommunications industry, allowing Oracle 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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Accenture’s Org. StructureAppendix – Tables


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Pamela J. CraigChief Financial Officer

Kevin M. CampbellGroup Chief Executive

Technology

Sander van’t Noordende Group Chief Executive

Management Consulting &Global Markets

GROWTH PLATFORMS

Martin I. ColeGroup Chief Executive

Communications

Jean-Marc OllagnierGroup Chief Executive

Resources

Gianfransco CasatiGroup Chief Executive

Products

Stephen J. Rohleder Group Chief Executive

Health & Public Service

OPERATING GROUPS

Richard LumbGroup Chief Executive

Financial Services

Johan (Jo) Deblaere Chief Operating Officer

Shawn Collinson Chief Strategy & Corporate

Development Officer

Pierre NantermeChief Executive Officer

Roxanne TaylorChief Marketing & Communications

Officer

Julie Spellman SweetGeneral Counsel, Secretary& Chief Compliance Officer

.Jill B. Smart

Chief Human Resources Officer

CORPORATE FUNCTIONS

K.C. McClureInvestor RelationsManaging Director

Thomas PikeChief Risk Officer

Adrian LajthaChief Leadership Officer

Basilio RuedaGlobal Delivery Network

Senior Managing Director

David C. ThomlinsonSr. Managing Director

Geographic Strategy & Operations

GEOGRAPHIES AND GLOBAL DELIVERY

Michael J. SalvinoGroup Chief Executive BPO

Jorge BenitezGroup Chief Executive

North America

Paul DaughertyChief Technology Architect

Oliver Benzecry Managing Director

U.K. & Ireland

Gavin MichaelChief Technology Innovation

Officer

Roger IngoldManaging Director

Brazil

Gong LiManaging Director

China

Avinash VashisthaManaging Director

India

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Physical Infrastructure and Worldwide Locations

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.Pittsburgh, Pa.Florham 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 ACCENTURE’S LOCATIONS

EMEA

Luanda, AngolaWien, AustriaHelsinki, FinlandFrankfurt, GermanyAthens, GreeceTel Aviv, 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, GermanyHamburg, 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, MalaysiaBusan, South Korea

Melbourne, AustraliaBeijing, ChinaShanghai, ChinaHyderabad, IndiaPune, IndiaManila, The PhilippinesBangkok, ThailandTaipei, Taiwan

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

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