Accenture Reports Second-Quarter Results

NEW YORK; April 11, 2002 – Accenture (NYSE: ACN) today reported results for the second quarter, ended February 28, 2002, that are consistent with the company’s announcement in March in which it said it would exceed analysts’ expectations for its operating results.

Revenues before reimbursements (“net revenues”) for the second quarter were $2.91 billion, an increase of 1 percent in US dollars and 3 percent in local currency over the second quarter of fiscal 2001. Operating income was $388 million, or 13 percent of net revenues for the quarter.

Net income before minority interest, excluding investment writedowns described below, increased 9 percent, to $236 million, compared to $216 million on a comparable pro forma basis in the same quarter of the previous fiscal year. Diluted earnings per share on the same basis were $0.23, compared to $0.21 on a comparable pro forma basis in the same quarter of the previous fiscal year.

Reported net income, including investment writedowns, was $11 million for the second quarter, and diluted earnings per share on the same basis were $0.02.

“Our resilience in what continues to be a difficult global economic environment enabled us to achieve modest revenue growth and improved operating margins in the second quarter,” said Joe W. Forehand, Accenture chairman and CEO. “In addition, during the first half of fiscal 2002 we had an impressive $9.8 billion in new bookings, nearly half of which represents business transformation outsourcing engagements, demonstrating the strong demand for our unique ability to help clients improve their business performance and bring their ideas to life.”

In terms of the near-term outlook, Accenture said that while there are a number of positive indicators in its business, it, like most other companies, is seeing the overall economic recovery moving very slowly across different industries and geographic regions. Accenture said, however, that it is comfortable with analysts’ consensus earnings estimates of $0.26 per share for the third quarter ending May 31, 2002.

As the company stated in March, it has decided to sell substantially all of its venture and investment portfolio in order to reduce volatility in future earnings. Accenture’s loss on investments in the second quarter includes a charge of $212 million, before and after tax, related to the loss the company expects to incur on the sale transaction. After giving effect to the charge, the venture and investment portfolio had a net book value at February 28, 2002, of $109 million, approximately half of which was hedged.

Accenture expects to receive offers that allow it to retain a modest percentage of ownership in the venture and investment portfolio through an ongoing alliance with the buyer. Any existing alliance or client relationships with portfolio companies will not be affected. Accenture has engaged an investment bank and has completed the initial screening of prospective purchasers. The company hopes to complete the transaction by the end of the calendar year.

Accenture said that, going forward, it will discontinue direct venture-capital investing and will no longer accept illiquid securities from clients or alliance partners.

Strong growth in two of Accenture’s five operating groups, formerly called global market units, contributed to its solid second-quarter results. Net revenues for Accenture’s Government and Resources operating groups were $324 million and $525 million, respectively, increases of 36 percent and 11 percent, respectively, over the second quarter of fiscal 2001.

Accenture’s Products operating group reported net revenues of $647 million, a 1 percent increase over the strong second quarter of fiscal 2001. Second-quarter net revenues for the Communications & High Tech and Financial Services operating groups were $751 million and $663 million, respectively, down 7 percent and 6 percent, respectively, from their second-quarter fiscal 2001 levels. The lower level of revenue decreases in these operating groups, compared to the decreases in the first quarter of fiscal 2002, suggest that the financial services, communications and technology sectors appear to be stabilizing.

Net revenues in Accenture’s Europe, Middle East and Africa (EMEA) geographic region were $1.26 billion, an increase of 12 percent in US dollars and 16 percent in local currency over the second quarter of fiscal 2001. Net revenues in the Asia Pacific region were $178 million, a decrease of 8 percent in US dollars. In local currency, net revenues in the Asia Pacific region were flat. Net revenues in the Americas region were $1.47 billion, a decrease of 6 percent in US dollars and 5 percent in local currency.

Accenture will host a conference call at 8:00 a.m. (EDT) today to discuss its second-quarter fiscal 2002 financial results and other matters. To participate, please dial +1 (877) 260-8899 [+1 (651) 291-0561 outside the United States, Puerto Rico and Canada] approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible live on the Investor Relations section of the Accenture Web site at www.accenture.com/investor.

A replay of the conference call will be available at www.accenture.com/investor, or by dialing +1 (800) 475-6701 [+1 (320) 365-3844 outside the United States, Puerto Rico and Canada] and entering the passcode 633967 from 11:30 a.m. (EDT) Thursday, April 11 through 11:59 p.m. (EDT) Sunday, April 28.

About Accenture

Accenture is the world’s leading management consulting and technology services organization. Through its network of businesses approach — in which the company enhances its consulting and outsourcing expertise through alliances, affiliated companies and other capabilities —Accenture delivers innovations that help clients across all industries quickly realize their visions. With more than 75,000 people in 47 countries, the company generated net revenues of $11.44 billion for the fiscal year ended August 31, 2001. Its home page is www.accenture.com.

This press release contains forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions and the factors discussed under the heading "Forward-Looking Statements and Certain Factors That May Affect Our Business" in the reports and other documents that we file with the Securities and Exchange Commission, including our most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

NOTES TO CONSOLIDATED AND COMBINED PRO FORMA INCOME STATEMENTS
(All figures in thousands of U.S. dollars)

1. For the three months and six months ended February 28, 2001, Partnership Income Before Partner Distributions, as reported under generally accepted accounting principles, was $419,539 and $1,617,980, respectively. Earnings per share were not presented because Accenture operated as a series of related partnerships and corporations under the control of its partners.
   
   Pro forma results for fiscal 2001 reflect adjustments to (1) eliminate the effects of one-time events directly attributable to our transition to a corporate structure and our initial public offering and related transactions and (2) present results as if our transition to a corporate structure had occurred on September 1, 2000. One-time items eliminated include reorganization costs of $8,000 for the three months ended February 28, 2001 and $13,000 for the six months ended February 28, 2001 relating to our transition to a corporate structure, rebranding costs of $151,000 for the three months ended February 28, 2001 and $176,000 for the six months ended February 28, 2001 to rename the organization, and income of $188,000 for the six months ended February 28, 2001 due to the adoption of SFAS 133. Adjustments to reflect the transition to a corporate structure include $329,000 for the three months ended February 28, 2001 and $810,000 for the six months ended February 28, 2001 of operating expenses for partner compensation and $5,000 for the three months ended February 28, 2001 and $10,000 for the six months ended February 28, 2001 of interest expense related to retirement benefits payable to the partners.
   
   Provision for taxes has been adjusted to include the tax effect on the pro forma adjustments and to reflect an estimated corporate tax expense to present results on a corporate basis. Minority interest has been adjusted as if the minority had existed for the three months ended February 28, 2001 and six months ended February 28, 2001. Minority interest and earnings per Class A share are based on the assumption that shares and share equivalents outstanding as of August 31, 2001, were outstanding for the entire fiscal year ended August 31, 2001.
   
   Additional information is provided in Accenture’s filings with the Securities and Exchange Commission.
2. Income before minority interest represents the consolidated income of Accenture Ltd earned through its subsidiary, Accenture SCA, without regard to Accenture Ltd’s ownership percentage in Accenture SCA. The minority interest expense represents the Accenture SCA income attributable to the partners who have an equity ownership directly in Accenture SCA. The resulting net income of Accenture Ltd represents the income attributable to the shareholders of Accenture Ltd.

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Roxanne Taylor

+1 (917) 452 5106

roxanne.taylor@accenture.com