Roxanne Taylor
New York
+1 (917) 452 5106

October 10, 2002
Accenture Reports Fourth-Quarter and Full-Year Fiscal 2002 Results

NEW YORK; Oct. 10, 2002 Accenture (NYSE: ACN) today reported results for the fourth quarter and the fiscal year ended August 31, 2002, which were in line with the analysts’ consensus estimate for adjusted earnings per share and the company’s previously stated expectations for revenues, and said that it generated over $1 billion in operating cash flow for the year. The company also confirmed its previous revenue and earnings guidance for fiscal year 2003.

Fiscal Year 2002

Revenues before reimbursements ("net revenues") for the full fiscal year 2002 were $11.57 billion, an increase of 1 percent in U.S. dollars and 2 percent in local currency over the prior fiscal year.

Excluding investment write-downs and a real estate consolidation charge of $111 million in the fourth quarter, diluted earnings per share were $0.91, compared with $0.85 on a pro forma basis, excluding a gain on investments, for fiscal year 2001. Diluted earnings per share for fiscal year 2002 were $0.56 on a GAAP basis. Because Accenture was not in its corporate structure during the first nine months of fiscal 2001, there is no comparable GAAP earnings per share figure for fiscal 2001. The $111 million charge is the result of a global consolidation of excess office space, which further reduces the company’s fixed cost base and will produce ongoing savings.

Operating income for fiscal year 2002, on a GAAP basis, was $1.39 billion, or 12.0 percent of net revenues. Excluding the real estate consolidation charge, operating income for fiscal year 2002 was $1.50 billion, or 12.9 percent of net revenues, compared with $1.45 billion, or 12.7 percent of net revenues, on a pro forma basis for fiscal year 2001.

Income before minority interest for fiscal year 2002 was $576 million on a GAAP basis. Excluding investment write-downs and the charge related to real estate consolidation, income before minority interest for fiscal year 2002 was $929 million, compared with $858 million on a pro forma basis, excluding the gain on investments, for fiscal year 2001.

Pro forma financial information for 2001 assumes that the company had been in corporate structure for the full fiscal year and eliminates the effects of one-time events and costs associated with the company’s May 2001 transition to corporate structure and subsequent initial public offering.

Accenture’s balance sheet remains strong. The company ended the year with $1.3 billion in cash, up $203 million from the third quarter. Total debt at August 31, 2002 was $67 million, down $34 million from the third quarter. Operating cash flow was $1.06 billion for the year and $517 million for the fourth quarter, reflecting a more efficient use of working capital.

Net revenues for Accenture’s Government operating group in fiscal 2002 were $1.32 billion, an increase of 31 percent over fiscal 2001. The Products operating group reported a 4 percent increase in net revenues, to $2.44 billion. The Resources operating group reported net revenues for the year of $2.01 billion, a 4 percent increase. The Communications & High Tech operating group reported net revenues for the year of $3.18 billion, a 2 percent decrease from fiscal 2001. The Financial Services operating group reported net revenues of $2.62 billion, a decrease of 9 percent from fiscal 2001.

Net revenues in Accenture’s Europe, Middle East and Africa (EMEA) region were $4.96 billion in fiscal 2002, an increase of 11 percent in U.S. dollars and 9 percent in local currency over the prior year. Accenture’s net revenues in the Americas were $5.84 billion in fiscal 2002, a decrease of 5 percent in U.S. dollars and 3 percent in local currency from the prior year. In the Asia Pacific region, net revenues were $775 million, a decrease of 8 percent in U.S. dollars and 4 percent in local currency.

Fourth Quarter 2002

Net revenues for the fourth quarter of 2002 were $2.69 billion, a decrease of 3 percent in U.S. dollars and 6 percent in local currency from the fourth quarter of the prior year, consistent with expectations.

Diluted earnings per share for the fourth quarter were $0.08 on a GAAP basis, compared with $0.10 on a pro forma basis for the fourth quarter of last year. Diluted earnings per share for the fourth quarter of 2002, excluding the real estate consolidation charge and a loss on investments in the fourth quarter, were $0.16, compared with $0.15 on a pro forma basis, excluding the loss on investments, for the fourth quarter of fiscal year 2001.

Operating income for the fourth quarter, on a GAAP basis, was $148 million, or 5.5 percent of net revenues. Excluding the real estate consolidation charge, operating income for the fourth quarter of fiscal year 2002 was $258 million, or 9.6 percent of net revenues, compared with $257 million, or 9.2 percent of net revenues, on a pro forma basis for the fourth quarter of fiscal 2001.

Income before minority interest in the fourth quarter was $78 million on a GAAP basis. Excluding the real estate consolidation charge and the loss on investments, income before minority interest in the fourth quarter of 2002 was $160 million, compared with $148 million on a pro forma basis, excluding loss on investments, for the fourth quarter of 2001.

Accenture said it continues to focus on delivering quality service to clients, attracting and retaining the best people, and realigning its workforce to address market demand. In the fourth quarter, the company recorded costs of $125 million related to workforce actions. In addition, it reduced previously recorded annual bonus expense and variable compensation for partners and associate partners by $140 million. The net effect of these actions was a decrease in operating expenses of approximately $15 million for the quarter.

Net revenues for Accenture’s Government operating group in the fourth quarter of fiscal 2002 were $328 million, an increase of 19 percent over the same quarter in fiscal 2001. The Communications & High Tech operating group reported an 8 percent increase in net revenues in the quarter, to $804 million. The Products operating group reported fourth-quarter net revenues of $532 million, a 9 percent decrease from the same quarter in fiscal 2001. The Financial Services operating group reported net revenues of $595 million, a decrease of 10 percent. The Resources operating group reported net revenues of $432 million, a 14 percent decrease.

Net revenues in Accenture’s Europe, Middle East and Africa (EMEA) region were $1.11 billion in the fourth quarter of fiscal 2002, an increase of 2 percent in U.S. dollars but a decrease of 7 percent in local currency over the same quarter the prior year. Accenture’s net revenues in the Americas were $1.39 billion in fiscal 2002, a decrease of 5 percent in U.S. dollars and 3 percent in local currency. In the Asia Pacific region, net revenues were $187 million, a decrease of 16 percent in U.S. dollars and 19 percent in local currency.

"We are pleased with Accenture’s ability to deliver solid results in a difficult economic environment," said Joe W. Forehand, Accenture’s chairman and chief executive officer. "We believe that our fundamentals are solid, with a strong balance sheet, a commitment to controlling costs, good business prospects and the right people. Going forward, we are confident that these factors, as well as our experience in working closely with our clients to improve their business performance, will help us to sustain a strong position in an uncertain market."

The company also said that it continues to be comfortable with earnings estimates of $1.05 per share for fiscal year 2003, based on expectations of full-year revenue growth in the range of 0-2 percent.

Accenture will host a conference call at 7:00 a.m. EDT today to discuss its fourth-quarter and full-year fiscal 2002 financial results. To participate, please dial +1 (888) 276-0010 [+1 (612) 332-7515 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.

A replay of the conference call will be available online at www.accenture.com and via telephone by dialing +1 (800) 475-6701 [+1 (320) 365-3844 outside the United States, Puerto Rico and Canada] and entering the passcode 651897 from 12:15 p.m. EDT Thursday, October 10 through 11:59 p.m. EDT Thursday, October 24.

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 $11.57 billion for the fiscal year ended August 31, 2002. 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 and quarterly report on Form 10-Q filed with the Securities and Exchange Commission.

ACCENTURE LTD
CONSOLIDATED INCOME STATEMENT
COMBINED PRO FORMA INCOME STATEMENT
For the Year Ended August 31, 2002 and 2001
(In thousands of U.S. dollars except share and per share data)
(unaudited)
  Consolidated
Income Statement 2002
Combined Pro forma
Income Statement 2001 (1)
                          % of Net Revenues                         % of Net Revenues
REVENUES:
Revenues before reimbursements (Net revenues) $11,574,269 100% $11,443,720 100%
Reimbursements (A) 1,530,755 13 1,618,152 14
Revenues 13,105,024 113 13,061,872 114
OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses 6,896,975 60 6,924,376 61
Reimbursable expenses (A) 1,530,755 13 1,618,152 14
Cost of services 8,427,730 73 8,542,528 75
Sales and marketing 1,565,616 14 1,507,048 13
General and administrative costs 1,615,703 14 1,560,066 14
Restructuring costs 110,524 1 - 0
Total operating expenses 11,719,573 101 11,609,642 101
OPERATING INCOME 1,385,451 12 1,452,230 12.7
Gain (loss) on investments, net (321,127) (3) 107,016 1
Interest income 46,185 0 79,778 1
Interest expense (48,864) 0 (58,696) (1)
Other income (expense) 14,993 0 16,973 0
Equity in losses of affiliates (9,080) 0 (61,388) (1)
INCOME BEFORE TAXES 1,067,558 9 1,535,913 13
Provision for taxes 491,071 4 614,165 5
INCOME BEFORE MINORITY INTEREST (2) 576,487 5 921,748 8
Minority interest (331,592) (3) (544,844) (5)
NET INCOME $244,895 2 $376,904 3
EARNINGS PER SHARE:
Basic $0.57 $0.91
Diluted $0.56 $0.91
ADJUSTED TO EXCLUDE 2002 RESTRUCTURING COSTS AND LOSS (GAIN) ON INVESTMENTS, NET
INCOME BEFORE MINORITY INTEREST AS REPORTED $576,487 $921,748
Add Back: Restructuring costs, net of tax 68,525 -
Add Back: Loss (gain) on investments, net of tax 283,833 (64,209)
ADJUSTED INCOME BEFORE MINORITY INTEREST $928,845 $857,539
ADJUSTED EARNINGS PER SHARE:
Basic $0.93 $0.85
Diluted $0.91 $0.85
WEIGHTED AVERAGE SHARES:
Basic 425,941,809 412,705,954
Diluted 1,023,789,546 1,008,163,290

(A) Reimbursements and Reimbursable expenses have been reduced in equal amounts to adjust for previous errors and are subject to final review and audit. These adjustments had no effect on reported revenues before reimbursements, operating income, net income or earnings per share.

ACCENTURE LTD
CONSOLIDATED INCOME STATEMENT
COMBINED PRO FORMA INCOME STATEMENT
For the Three Months Ended August 31, 2002 and 2001
(In thousands of U.S. dollars except share and per share data)
(unaudited)
  Consolidated
Income Statement 2002
Combined Pro forma
Income Statement 2001 (1)
                          % of Net Revenues                         % of Net Revenues
REVENUES:
Revenues before reimbursements (Net revenues) $2,691,672 100% $2,777,435 100%
Reimbursements (A) 392,933 15 372,822 13
Revenues 3,084,605 115 3,150,257 113
OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses 1,629,764 61 1,689,852 61
Reimbursable expenses (A) 392,933 15 372,822 13
Cost of services 2,022,697 75 2,062,674 74
Sales and marketing 392,584 15 446,050 16
General and administrative costs 410,871 15 384,959 14
Restructuring costs 110,524 4 - 0
Total operating expenses 2,936,676 109 2,893,683 104
OPERATING INCOME 147,929 5.5 256,574 9.2
Loss on investments, net (14,521) (-1) (72,684) (3)
Interest income 12,635 0 20,165 1
Interest expense (12,608) 0 (17,863) (1)
Other income (expense) 67 0 (3,820) 0
Equity in losses of affiliates (192) 0 (8,563) 0
INCOME BEFORE TAXES 133,310 5 173,809 6
Provision for taxes 55,536 2 69,324 2
INCOME BEFORE MINORITY INTEREST (2) 77,774 3 104,485 4
Minority interest (39,627) (1) (61,761) (2)
NET INCOME $38,147 1 $42,724 2
EARNINGS PER SHARE:
Basic $0.08 $0.10
Diluted $0.08 $0.10
ADJUSTED TO EXCLUDE 2002 RESTRUCTURING COSTS AND LOSS ON INVESTMENTS, NET
INCOME BEFORE MINORITY INTEREST AS REPORTED $77,774 $104,485
Add Back: Restructuring costs, net of tax 68,525 -
Add Back: Loss on investments, net of tax 13,877 43,610
ADJUSTED INCOME BEFORE MINORITY INTEREST $160,176 $148,095
ADJUSTED EARNINGS PER SHARE:
Basic $0.17 $0.15
Diluted $0.16 $0.15
WEIGHTED AVERAGE SHARES:
Basic 468,829,346 412,705,954
Diluted 1,006,394,255 1,008,163,290

(A) Reimbursements and Reimbursable expenses have been reduced in equal amounts to adjust for previous errors and are subject to final review and audit. These adjustments had no effect on reported revenues before reimbursements, operating income, net income or earnings per share.

NOTES TO CONSOLIDATED AND COMBINED PRO FORMA INCOME STATEMENTS
(UNAUDITED)
  1. For the three months and year ended August 31, 2001 Net Income (Loss), as reported under generally accepted accounting principles, was ($369,782) and $1,057,403, respectively. Earnings per share were not presented for the year ended August 31, 2001 because Accenture operated as a series of related partnerships and corporations under the control of the partners on and prior to May 31, 2001. For the quarter ended August 31, 2001, the company reported a net loss per share of $1.25.

    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 $36,000 for the three months ended August 31, 2001 and $544,000 for the year ended August 31, 2001 relating to our transition to a corporate structure, rebranding costs of $35,000 for the three months ended August 31, 2001 and $304,000 for the year ended August 31, 2001 to rename the organization, restricted share unit-based compensation expense of $967,000 relating to restricted shares granted at the time of initial public offering, and income of $188,000 for the year ended August 31, 2001 due to the adoption of SFAS 133. Adjustments to reflect the transition to a corporate structure include $0 for the three months ended August 31, 2001 and $1,059,000 for the year ended August 31, 2001 of operating expenses for partner compensation and $0 for the three months ended August 31, 2001 and $15,000 for the year ended August 31, 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 interests as of August 31, 2001 had existed for the three months ended August 31, 2001 and year ended August 31, 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 eliminates the income earned by 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.



ACCENTURE LTD
SUMMARY OF REVENUES
For the Three Months Ended August 31, 2002 and 2001
(In thousands of U.S. dollars)
(Unaudited)

Three Months Ended
August 31,
2002                              2001
% increase/
(decrease) US$
% increase/
(decrease) Local
currency
% of Total
Net
Revenues
OPERATING GROUPS
Communication & High Tech $804,457 $746,425 8% - 30%
Financial Services 595,336 663,337 (10) - 22
Government 327,507 275,477 19 - 12
Products 532,140 587,328 (9) - 20
Resources 432,076 504,347 (14) - 16
Other 156 521 (70) - 0
TOTAL Net Revenues 2,691,672 2,777,435 (3) - 100
Reimbursements (A) 392,933 372,822 5 - -
TOTAL REVENUES $3,084,605 $3,150,257 (2) - -
GEOGRAPHY
Americas $1,394,126 $1,463,944 (5) (3) 52
EMEA 1,110,486 1,090,385 2 (7) 41
Asia Pacific 187,060 223,106 (16) (19) 7
TOTAL Net Revenues 2,691,672 2,777,435 (3) (6) 100
Reimbursements (A) 392,933 372,822 5 - -
TOTAL REVENUES $3,084,605 $3,150,257 (2) - -
For the Year Ended August 31, 2002 and 2001
(In thousands of U.S. dollars)
(Unaudited)

Year Ended
August 31,
2002                              2001
% increase/
(decrease) US$
% increase/
(decrease) Local
currency
% of Total
Net
Revenues
OPERATING GROUPS
Communication & High Tech $3,181,658 $3,238,256 (2)% - 28%
Financial Services 2,621,086 2,893,567 (9) - 23
Government 1,315,819 1,003,235 31 - 11
Products 2,441,319 2,356,440 4 - 21
Resources 2,005,045 1,933,225 4 - 17
Other 9,342 18,997 (51) - 0
TOTAL Net Revenues 11,574,269 11,443,720 1 - 100
Reimbursements (A) 1,530,755 1,618,152 (5) - -
TOTAL REVENUES $13,105,024 $13,061,872 0 - -
GEOGRAPHY
Americas 5,835,992 6,112,986 (5) (3) 50
EMEA 4,962,942 4,484,075 11 9 43
Asia Pacific 775,335 846,659 (8) (4) 7
TOTAL Net Revenues 11,574,269 11,443,720 1 2 100
Reimbursements (A) 1,530,755 1,618,152 (5) - -
TOTAL REVENUES $13,105,024 $13,061,872 0 - -

(A) Reimbursements have been reduced to adjust for previous errors and are subject to final review and audit. These adjustments had no effect on reported revenues before reimbursements.

ACCENTURE LTD
CONSOLIDATED BALANCE SHEET
August 31, 2002 and August 31, 2001
(In thousands of U.S. dollars)
(unaudited)


August 31, 2002 August 31, 2001
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,316,976 $1,880,083
Restricted cash (A) 79,445 -
Receivables from clients, net 1,330,642 1,498,812
Unbilled services 774,214 731,802
Other current assets 559,811 468,940
Total current assets 4,061,088 4,579,637
NON-CURRENT ASSETS:
Investments 76,017 324,139
Property and equipment, net 716,504 822,318
Other non-current assets 650,997 335,262
Total non-current assets 1,443,518 1,481,719
TOTAL ASSETS $5,504,606 $6,061,356
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term debt $63,099 $190,669
Accounts payable 450,208 371,794
Deferred revenues 543,917 810,043
Accrued payroll and related benefits 1,133,713 1,050,385
Other accrued liabilities 1,161,783 1,755,929
Total current liabilities 3,352,720 4,178,820
NON-CURRENT LIABILITIES:
Long-term debt 3,428 1,090
Other non-current liabilities
1,190,436 1,191,332
Total non-current liabilities 1,193,864 1,192,422
MINORITY INTEREST 519,396 407,926
EQUITY:
Shareholders’ equity 438,626 282,188
Total equity 438,626 282,188
TOTAL LIABILITIES AND EQUITY $5,504,606 $6,061,356

(A) Restricted cash represents cash available to the Accenture Share Employee Compensation Trust for share repurchases that will be used to fund equity-based awards for Accenture employees.

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