Roxanne Taylor
New York
+1 (917) 452 5106

March 28, 2006
Accenture Reports Second-Quarter Fiscal 2006 Financial Results

EPS of $0.11 Includes $450 Million Pre-Tax Provision Related to Company’s National Health Service Contracts

Net Revenues Up 13%, with Record Consulting Revenue Growth, in Local Currency

Company to Host Conference Call Today at 5:30 p.m. EST

NEW YORK; March 28, 2006 – Accenture (NYSE: ACN) today reported net revenues for the second quarter, ended Feb. 28, 2006, of $4.10 billion, a 13 percent increase in local currency. GAAP diluted earnings per share were $0.11, including a pre-tax provision for future losses of $450 million related to the company’s future deployment of systems for the National Health Service (NHS) in England. Absent the impact of the NHS provision, EPS were $0.38, above the company’s previously stated expectations.

The company said that it is on pace to hit its full-year bookings target, it posted a record increase in consulting net revenue growth in local currency, operations continue to generate strong cash flow, and it maintained its sound balance sheet.

William D. Green, Accenture’s CEO, said, “We are very disappointed that recent developments prevented us from meeting expectations this quarter. During the quarter, several issues increased the risks and uncertainties associated with the NHS contracts and affected our estimates of the expected contract revenues and costs. Under GAAP, we were required to record this provision to reflect these new circumstances.

“We are exceptionally proud of what we have delivered to date. We fully subscribe to the NHS vision of an integrated patient care record. The NHS vision is an important and compelling proposition for citizens of England and for the NHS.

“We have established guiding principles for success for our ongoing work with the NHS and have devoted additional management resources at the highest level to resolve the NHS matter as quickly as possible.

“The rest of our business remains very strong. We continue to see solid performance in our operating groups and geographic regions, with strong revenue growth and consulting bookings, and our balance sheet and cash flows remain exceptionally strong. We are very pleased with our overall progress as we continue to focus on operational excellence and profitability.”

Financial Highlights

NHS Contracts

Accenture’s contracts with the NHS consist of two major components: design, build and deploy (deployment), which is accounted for using the percentage-of-completion method of accounting, and services, for which revenues and costs are recognized monthly on an “as earned” basis.

To put the NHS contracts in perspective, this fiscal year the NHS contracts represent roughly 1 percent of Accenture’s annual net revenues. The $450 million NHS provision has no impact on current-period cash flow. The NHS provision provides for the expected deployment losses over the remaining life of the contracts.

Based on new developments in the second quarter, Accenture now believes that the future costs of deploying systems will exceed future deployment revenues under the current contract terms. As required under GAAP percentage-of-completion rules, Accenture has recorded a $450 million provision for future losses on deployment. The provision is reflected in cost of services for the second quarter of fiscal 2006. The provision, net of lower bonus compensation, resulted in a $342 million pre-tax reduction in operating income and a $0.27 after-tax reduction in EPS in the second quarter.

The major new developments in the second quarter were:

Excluding the NHS provision, Accenture expects losses on the NHS contracts in fiscal 2006 that are comparable to its losses on the contracts in fiscal 2005 and expects losses in fiscal 2007 that are moderately higher. The company expects to drive annual losses down significantly thereafter.

However, Accenture is actively exploring all options with respect to the contracts and expects to work with the NHS to accommodate, in the contracts, the changed circumstances. Accenture has a strong commitment to deliver value to the NHS and the citizens of England. Resolving this situation to meet the interests of all parties in a timely fashion is a top priority.

Financial Review

GAAP diluted EPS for the second quarter of fiscal 2006 were $0.11, reflecting the impact of the provision related to the NHS contracts. Absent the impact of the NHS provision, EPS were $0.38, compared with GAAP diluted EPS for the second quarter of fiscal 2005 of $0.35.

GAAP operating income was $137 million, or 3.3 percent of net revenues. Absent a $14 million reorganization benefit, operating income was $124 million, or 3 percent of net revenues. Excluding the impact of the NHS provision and reorganization benefit, operating income was $466 million, or 11.4 percent of net revenues, compared with $379 million, or 9.9 percent of net revenues, on a reorganization- and options-adjusted basis consistent with SFAS 123R for the second quarter of 2005.

Gross margin (gross profit as a percentage of net revenues) for the second quarter of 2006 was 21.2 percent on a GAAP basis, compared with 30.8 percent in the second quarter of 2005. This decrease was due to the impact of the NHS provision and higher share-based compensation expense as a result of the adoption of SFAS 123R.

Selling, general and administrative expenses in the second quarter of 2006 were $739 million, or 18.0 percent of net revenues, on a GAAP basis, compared with $738 million, or 19.4 percent of net revenues, in the second quarter of 2005.

The company’s effective tax rate for the second quarter of 2006 was 35.7 percent.

GAAP income before minority interest was $104 million in the second quarter of 2006, compared with $341 million in the same period of 2005.

For the three and six months ended Feb. 28, 2006, operating cash flow was $678 million and $1.05 billion, respectively, and property and equipment additions were $72 million and $150 million, respectively. Free cash flow, defined as operating cash flow net of property and equipment additions, for the second quarter and first half of 2006 was $606 million and $902 million, respectively.

Accenture’s total cash balance at Feb. 28, 2006 was $2.03 billion, compared with $2.48 billion at Aug. 31, 2005. Cash combined with $491 million of fixed-income securities classified as investments on the company’s balance sheet was $2.52 billion at Feb. 28, 2006, compared with $3.18 billion at Aug. 31, 2005. Total debt at Feb. 28, 2006 was $52 million.

Net Revenues by Operating Group

Net revenues for Accenture’s five operating groups were as follows:

Net Revenues by Geographic Region

Net revenues by geographic region were as follows:

Share Repurchase Activity; Board Authorizes Additional Authority

During the second quarter of fiscal 2006, Accenture repurchased or redeemed a total of 12.5 million shares for a total of $383.6 million. The company’s board recently approved $1.5 billion in additional share repurchase authority, bringing Accenture’s total outstanding authority to $2.5 billion.

Business Outlook

Third Quarter Fiscal 2006

For the third quarter of fiscal 2006, ending May 31, Accenture expects net revenues to be in the range of $4.3 billion to $4.5 billion and GAAP diluted earnings per share to be in the range of $0.45 to $0.47.

Full Fiscal Year 2006

For the full fiscal year 2006, Accenture continues to expect net revenue growth of 9 percent to 12 percent in local currency. The company now expects GAAP diluted EPS to be in the range of $1.25 to $1.30, which includes the $0.27 impact of the NHS provision in the second quarter.

Accenture continues to expect operating cash flow for the full fiscal year to be in the range of $2.00 billion to $2.20 billion. For the full fiscal year the company now expects property and equipment additions to be $400 million, which is a $50 million reduction from its previous estimate, and free cash flow to be in the upper end of its previously announced range of $1.55 billion to $1.75 billion.

The company continues to expect the annual effective tax rate to be in the range of 35 percent to 38 percent. Accenture continues to target new bookings in the range of $19 billion to $21 billion for the full fiscal year.

Conference Call and Webcast Details

Accenture will host a conference call at 5:30 p.m. EST today to discuss its second-quarter 2006 financial results. To participate, please dial +1 (888) 276-9998 [+1 (612) 234-9960 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 access code 823722 from 10:45 p.m. EST Tuesday, March 28 through 11:59 p.m. EDT Tuesday, April 11.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 129,000 people in 48 countries, the company generated net revenues of US$15.55 billion for the fiscal year ended Aug. 31, 2005. Its home page is www.accenture.com.

Forward-Looking Statements

This news release contains forward-looking statements relating to our operations and results of operations, 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 "Risk Factors" heading in the Business section of our most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

Non-GAAP Financial Information

This press release includes certain non-GAAP financial information as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of this non-GAAP financial information to Accenture’s financial statements as prepared under generally accepted accounting principles (GAAP) are included in this press release. Accenture’s management believes providing investors with this information gives additional insights into Accenture’s results of operations. While Accenture’s management believes that these non-GAAP financial measures are useful in evaluating Accenture’s operations, this information should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with GAAP.

ACCENTURE LTD
CONSOLIDATED INCOME STATEMENTS
For the Three and Six Months Ended February 28, 2006 and 2005
(In thousands of U.S. dollars, except share and per share data)
(Unaudited)
  Three Months Ended February 28, Six Months Ended February 28,
  2006 % of Net Revenues 2005 % of Net Revenues 2006   % of Net Revenues 2005 % of Net Revenues
REVENUES:
Revenues before reimbursements (Net revenues) $ 4,102,795 100% $ 3,813,522 100% $ 8,272,270 100% $ 7,543,877 100%
Reimbursements 388,317
402,862
761,858
743,879
Revenues 4,491,112
4,216,384
9,034,128
8,287,756
OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses 3,234,139 78.8% 2,638,950 69.2% 6,083,306 73.5% 5,154,389 68.3%
Reimbursable expenses 388,317
402,862
761,858
743,879
Cost of services 3,622,456
3,041,812
6,845,164 5,898,268
Sales and marketing 393,412 9.6% 376,919 9.9% 802,014 9.7% 735,862 9.8%
General and administrative costs 345,347 8.4% 361,478 9.5% 739,113 8.9% 752,293 10.0%
Reorganization benefits, net (7,415)
(35,777)
(2,031)
(28,769)
Total operating expenses 4,353,800
3,744,432
8,384,260
7,357,654
OPERATING INCOME 137,312 3.3% 471,952 12.4% 649,868 7.9% 930,102 12.3%
Gain on investments, net 1,792
93
3,230
14,633
Interest income 24,581
28,063
54,934
48,184
Interest expense (4,558)
(6,300)
(9,243)
(12,616)
Other income (expense) 2,805
(2,846)
(13,142)
(5,173)
INCOME BEFORE INCOME TAXES 161,932 3.9% 490,962 12.9% 685,647 8.3% 975,130 12.9%
Provision for income taxes 57,820
150,350
253,689
314,967
INCOME BEFORE MINORITY INTEREST 104,112 2.5% 340,612 8.9% 431,958 5.2% 660,163 8.8%
Minority interest in Accenture SCA and Accenture Canada Holdings Inc (32,654)
(128,688)
(142,790)
(250,369)
Minority interest – other (1) (1,778)
(2,138)
(4,548)
(3,735)
NET INCOME $ 69,680 1.7% $ 209,786 5.5% $ 284,620 3.4% $ 406,059 5.4%
CALCULATION OF EARNINGS PER SHARE:
Net income $ 69,680
$ 209,786
$ 284,620
$ 406,059
Minority interest in Accenture SCA and Accenture Canada Holdings Inc. (2) 32,654
128,688
142,790
250,369
Net income for diluted earnings per share calculation $ 102,334
$ 338,474
$ 427,410
$ 656,428
EARNINGS PER SHARE:
Basic $ 0.12
$ 0.35
$ 0.49
$ 0.69
Diluted $ 0.11
$ 0.35
$ 0.47
$ 0.67
WEIGHTED AVERAGE SHARES:
Basic 585,674,656
591,694,862
586,031,530
590,746,753
Diluted 892,439,424
980,080,181
903,294,295
980,208,047







Cash Dividends Per Share $ —
$ —
$ 0.30
$ —

[1] Minority interest – other is comprised primarily of minority interest attributable to the minority shareholders of Avanade, Inc.
[2] Diluted earnings per share assumes the redemption and exchange of all Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares, respectively, for Accenture Ltd Class A common shares, on a one-for-one basis.

ACCENTURE LTD
For the Three and Six Months Ended February 28, 2006
(In thousands of U.S. dollars, except per share data)
(Unaudited)

RECONCILIATION OF OPERATING INCOME,
AS REPORTED (GAAP) TO ADJUSTED (NON-GAAP)
 

2006

Three Months Ended
February 28
Six Months Ended
February 28
  Dollar Amount % of Net Revenues Dollar Amount % of Net Revenues
OPERATING INCOME—as Reported $ 137,312 3.3% $ 649,868 7.9%

NHS provision for future loss 450,000
450,000
Lower bonus compensation expense (108,000)
(108,000)
Subtotal net impact of NHS provision for future loss 342,000
342,000
Reorganization benefits (13,540)
(14,638)
OPERATING INCOME—as Adjusted $ 465,772 11.4% $ 977,230 11.8%

RECONCILIATION OF DILUTED EARNINGS PER SHARE,
AS REPORTED (GAAP) TO ADJUSTED (NON-GAAP)
 

2006

Three Months Ended
February 28
Six Months Ended
February 28
  Dollar Amount Per Share Amount(1) Dollar Amount Per Share Amount (1)(3)
NET INCOME—as Reported $ 69,680
$ 284,620

Minority interest in Accenture SCA and Accenture Canada Holdings Inc. (2) 32,654
142,790
Net income for diluted earnings per share calculation, as Reported 102,334 $ 0.11 427,410 $ 0.47

Net impact of NHS provision:
NHS provision for future loss (pre-tax) 450,000
450,000
Lower bonus compensation expense (pre-tax) (108,000)
(108,000)

Lower income taxes (105,000)
(105,000)

Sub-total net impact of NHS provision 237,000 0.27 237,000 0.26

Net income for diluted earnings per share calculation,
adjusted for impact of NHS provision
339,334 0.38 664,410 0.74

Reduction in reorganization liabilities (13,540) (0.01) (14,638) (0.02)

Net income for diluted earnings per share calculation, adjusted for impact of NHS provision and reduction in reorganization liabilities $ 325,794 $ 0.37 $ 649,772 $ 0.72
WEIGHTED AVERAGE SHARES—Diluted
892,439,424
903,294,295

[1] The per share amount is calculated as the dollar amount divided by the number of weighted average diluted shares.
[2] Diluted earnings per share assumes the redemption and exchange of all Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares, respectively, for Accenture Ltd Class A common shares, on a one-for-one basis.
[3] May not total due to rounding.

ACCENTURE LTD
RECONCILIATION OF CONSOLIDATED INCOME STATEMENT, AS REPORTED (GAAP),
TO CONSOLIDATED INCOME STATEMENT ON AN OPTIONS-ADJUSTED BASIS
For the Three Months Ended February 28, 2005
(In thousands of U.S. dollars, except share and per share data)
(Unaudited)
 
  As Reported
(GAAP)
Adjustments(3) Options-Adjusted % of Net Revenues
REVENUES:
Revenues before reimbursements (Net revenues) $ 3,813,522 $ — $ 3,813,522 100%
Reimbursements 402,862 402,862
Revenues 4,216,384 4,216,384
OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses 2,638,950 47,492 2,686,442 70.4%
Reimbursable expenses 402,862 402,862
Cost of services 3,041,812 47,492 3,089,304
Sales and marketing 376,919 1,270 378,189 9.9%
General and administrative costs 361,478 2,032 363,510 9.5%
Reorganization benefits, net (35,777) (35,777)
Total operating expenses 3,744,432 50,794 3,795,226
OPERATING INCOME 471,952 (50,794) 421,158 11.0%
Gain on investments, net 93 93
Interest income 28,063 28,063
Interest expense (6,300) (6,300)
Other expense (2,846) (2,846)
INCOME BEFORE INCOME TAXES 490,962 (50,794) 440,168 11.5%
Provision for income taxes 150,350 (15,238) 135,112
INCOME BEFORE MINORITY INTEREST 340,612 (35,556) 305,056 8.0%
Minority interest in Accenture SCA and Accenture Canada Holdings Inc (128,688) 13,519 (115,169)
Minority interest – other (1) (2,138) (2,138)
NET INCOME $ 209,786 $ (22,037) $ 187,749 4.9%
CALCULATION OF EARNINGS PER SHARE:
Net income $ 209,786
$ 187,749
Minority interest in Accenture SCA and Accenture Canada Holdings Inc. (2) 128,688
115,169
Net income for diluted earnings per share calculation $ 338,474
$ 302,918
EARNINGS PER SHARE:
Basic $ 0.35
$ 0.32
Diluted $ 0.35
$ 0.31
WEIGHTED AVERAGE SHARES:
Basic 591,694,862
591,694,862
Diluted 980,080,181
980,080,181

[1] Minority interest – other is comprised primarily of minority interest attributable to the minority shareholders of Avanade, Inc.
[2] Diluted earnings per share assumes the redemption and exchange of all Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares, respectively, for Accenture Ltd Class A common shares, on a one-for-one basis.
[3] Adjustments represent the estimated amounts that Accenture would have incurred if it had expensed employee stock options and employee share purchase plans for the three months ended February 28, 2005.

ACCENTURE LTD
RECONCILIATION OF CONSOLIDATED INCOME STATEMENT, AS REPORTED (GAAP),
TO CONSOLIDATED INCOME STATEMENT ON AN OPTIONS-ADJUSTED BASIS
For the Six Months Ended February 28, 2005
(In thousands of U.S. dollars, except share and per share data)
(Unaudited)
 
  As Reported
(GAAP)
Adjustments(3) Options-Adjusted % of Net Revenues
REVENUES:
Revenues before reimbursements (Net revenues) $ 7,543,877 $ — $ 7,543,877 100%
Reimbursements 743,879 743,879
Revenues 8,287,756 8,287,756
OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses 5,154,389 76,975 5,231,364 69.3%
Reimbursable expenses 743,879 743,879
Cost of services 5,898,268 76,975 5,975,243
Sales and marketing 735,862 2,058 737,920 9.8%
General and administrative costs 752,293 3,293 755,586 10.0%
Reorganization benefits, net (28,769) (28,769)
Total operating expenses 7,357,654 82,326 7,439,980
OPERATING INCOME 930,102 (82,326) 847,776 11.2%
Gain on investments, net 14,633 14,633
Interest income 48,184 48,184
Interest expense (12,616) (12,616)
Other expense (5,173) (5,173)
INCOME BEFORE INCOME TAXES 975,130 (82,326) 892,804 11.8%
Provision for income taxes 314,967 (24,698) 290,269
INCOME BEFORE MINORITY INTEREST 660,163 (57,628) 602,535 8.0%
Minority interest in Accenture SCA and Accenture Canada Holdings Inc (250,369) 21,966 (228,403)
Minority interest – other (1) (3,735) (3,735)
NET INCOME $ 406,059 $ (35,662) $ 370,397 4.9%
CALCULATION OF EARNINGS PER SHARE:
Net income $ 406,059
$ 370,397
Minority interest in Accenture SCA and Accenture Canada Holdings Inc. (2) 250,369
228,403
Net income for diluted earnings per share calculation $ 656,428
$ 598,800
EARNINGS PER SHARE:
Basic $ 0.69
$ 0.63
Diluted $ 0.67
$ 0.61
WEIGHTED AVERAGE SHARES:
Basic 590,746,753
590,746,753
Diluted 980,208,047
980,208,047

[1] Minority interest – other is comprised primarily of minority interest attributable to the minority shareholders of Avanade, Inc.
[2] Diluted earnings per share assumes the redemption and exchange of all Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares, respectively, for Accenture Ltd Class A common shares, on a one-for-one basis.
[3] Adjustments represent the estimated amounts that Accenture would have incurred if it had expensed employee stock options and employee share purchase plans for the six months ended February 28, 2005.

ACCENTURE LTD
SUMMARY OF REVENUES
(In thousands of U.S. dollars)
(Unaudited)

Three Months Ended

February 28,
2006

February 28,
2005
Percent
Increase
(Decrease)
US $
Percent
Increase
Local Currency
Percent of
Total 2006
Net Revenues
OPERATING GROUPS
Communication & High Tech 1,026,092 $ 982,088 4% 9% 25%
Financial Services 833,362 859,336 (3)% 3% 20%
Government 597,687 521,111 15% 19% 15%
Products 1,004,205 851,394 18% 24% 24%
Resources 639,066 596,493 7% 11% 16%
Other 2,383 3,100 n/m n/m
TOTAL Net Revenues 4,102,795 3,813,522 8% 13% 100%
Reimbursements 388,317 402,862 (4)%

TOTAL REVENUES 4,491,112 $ 4,216,384 7%

GEOGRAPHY
Americas $ 1,897,766 $ 1,571,857 21% 19% 46%
EMEA 1,914,458 1,970,414 (3)% 7% 47%
Asia Pacific 290,571 271,251 7% 15% 7%
TOTAL Net Revenues $ 4,102,795 $ 3,813,522 8% 13% 100%
TYPE OF WORK
Consulting $ 2,465,376 $ 2,301,273 7% 13% 60%
Outsourcing 1,637,419 1,512,249 8% 13% 40%
TOTAL Net Revenues $ 4,102,795 $ 3,813,522 8% 13% 100%



Six Months Ended

February 28,
2006

February 28,
2005
Percent
Increase
US $
Percent
Increase
Local Currency
Percent of
Total 2006
Net Revenues
OPERATING GROUPS
Communication & High Tech $ 2,073,633 $ 1,955,019 6% 8% 25%
Financial Services 1,688,234 1,666,029 1% 5% 20%
Government 1,195,806 1,044,914 14% 17% 15%
Products 2,021,240 1,713,592 18% 21% 24%
Resources 1,289,352 1,160,885 11% 13% 16%
Other 4,005 3,438 n/m n/m
TOTAL Net Revenues 8,272,270 7,543,877 10% 12% 100%
Reimbursements 761,858 743,879 2%

TOTAL REVENUES $ 9,034,128 $ 8,287,756 9%

GEOGRAPHY
Americas $ 3,753,256 $ 3,126,191 20% 19% 45%
EMEA 3,925,127 3,879,527 1% 7% 48%
Asia Pacific 593,887 538,159 10% 14% 7%
TOTAL Net Revenues $ 8,272,270 $ 7,543,877 10% 12% 100%
TYPE OF WORK
Consulting $ 5,042,015 $ 4,686,205 8% 11% 61%
Outsourcing 3,230,255 2,857,672 13% 15% 39%
TOTAL Net Revenues $ 8,272,270 $ 7,543,877 10% 12% 100%

n/m = not meaningful

ACCENTURE LTD
OPERATING INCOME (LOSS) BY OPERATING GROUP (OG)
For the Three Months Ended February 28, 2006 and 2005
(In thousands of U.S. dollars)
(Unaudited)
Operating Income (Loss) as Reported

2006 2005
Operating Groups Operating Income (Loss) Percent of OG
Net Revenues
Operating Income Percent of OG Net Revenues Percent Increase (Decrease)
Communications & High Tech $ 177,488 17% $ 138,496 14% 28%
Financial Services 102,332 12 127,053 15 (19)
Government (3) (136,584) (23) 13,343 3 n/m
Products (3) (82,678) (8) 97,991 12 n/m
Resources 76,754 12 95,069 16 (19)
Total $ 137,312 3.3% $ 471,952 12.4% (71)%


Operating Income (Loss) on an Options-Adjusted Basis and Excluding Reorganization Benefits

2006 2005
Operating Groups Reorg. Benefits(1) Adjusted Operating Income (Loss) Percent of OG Net Revenues Options Adjs. (2) Reorg. Benefits(1) Adjusted Operating Income Percent of OG Net Revenues Percent Increase (Decrease)
Communications & High Tech $ 3,243 $ 174,245 17% $ 11,712 $ 10,505 $ 116,279 12% 50%
Financial Services 2,810 99,522 12 11,903 9,542 105,608 12 (6)
Government (3) 2,008 (138,592) (23) 6,610 6,683 50 n/m
Products (3) 3,306 (85,984) (9) 12,612 9,528 75,851 9 n/m
Resources 2,173 74,581 12 7,957 5,981 81,131 14 (8)
Total $ 13,540 $ 123,772 3.0% $ 50,794 $ 42,239 $ 378,919 9.9% (67)%
n/m = not meaningful

[1] Represents reorganization benefits related to certain reorganization liabilities established in connection with Accenture’s transition to a corporate structure in 2001, which are included in Reorganization benefits, net on the income statement.
[2] Adjustments represent the estimated amounts that Accenture would have incurred if it had expensed employee stock options and employee share purchase plans for the three months ended February 28, 2005.
[3] Includes the impact of the NHS provision.

ACCENTURE LTD
OPERATING INCOME (LOSS) BY OPERATING GROUP (OG)
For the Six Months Ended February 28, 2006 and 2005
(In thousands of U.S. dollars)
(Unaudited)
Operating Income (Loss) as Reported

2006 2005
Operating Groups Operating Income (Loss) Percent of OG
Net Revenues
Operating Income Percent of OG Net Revenues Percent Increase (Decrease)
Communications & High Tech $ 349,794 17% $ 287,825 15% 22%
Financial Services 183,935 11 222,479 13 (17)
Government (3) (74,962) (6) 59,610 6 n/m
Products (3) 35,055 2 183,859 11 n/m
Resources 156,046 12 176,329 15 (12)
Total $ 649,868 7.9% $ 930,102 12.3% (30)%


Operating Income (Loss) on an Options-Adjusted Basis and Excluding Reorganization Benefits

2006 2005
Operating Groups Reorg. Benefits(1) Adjusted Operating Income (Loss) Percent of OG Net Revenues Options Adjs. (2) Reorg. Benefits(1) Adjusted Operating Income Percent of OG Net Revenues Percent Increase (Decrease)
Communications & High Tech $ 3,473 $ 346,321 17% $ 19,173 $ 10,505 $ 258,147 13% 34%
Financial Services 3,054 180,881 11 19,244 9,542 193,693 12 (7)
Government (3) 2,187 (77,149) (6) 11,045 6,683 41,882 4 n/m
Products (3) 3,601 31,454 2 19,992 9,528 154,339 9 n/m
Resources 2,323 153,723 12 12,872 5,981 157,476 14 (2)
Total $ 14,638 $ 635,230 7.7% $ 82,326 $ 42,239 $ 805,537 10.7% (21)%
n/m = not meaningful

[1] Represents reorganization benefits related to certain reorganization liabilities established in connection with Accenture’s transition to a corporate structure in 2001, which are included in Reorganization benefits, net on the income statement.
[2] Adjustments represent the estimated amounts that Accenture would have incurred if it had expensed employee stock options and employee share purchase plans for the three months ended February 28, 2005.
[3] Includes the impact of the NHS provision.

ACCENTURE LTD
RECONCILIATION OF DILUTED EARNINGS PER SHARE, AS REPORTED (GAAP) TO
DILUTED EARNINGS PER SHARE, AS ADJUSTED (NON-GAAP)

For the Three and Six Months Ended February 28, 2006 and 2005
(In thousands of U.S. dollars, except per share data)
(Unaudited)
 

For the Three Months Ended February 28, 2006 For the Six Months Ended February 28, 2006
  Dollar Amount Per Share Amount(1) Dollar Amount Per Share Amount (1)(4)
NET INCOME $ 69,680
$ 284,620
Minority interest in Accenture SCA and Accenture Canada Holdings Inc. (2) 32,654
142,790
Net income for diluted earnings per share calculation 102,334 $ 0.11 427,410 $ 0.47

Less reorganization benefits (13,540) (0.01) (14,638) (0.02)
Net income for diluted earnings per share calculation, adjusted $ 88,794 $ 0.10 $ 412,772 $ 0.46
Weighted average diluted shares
892,439,424
903,294,295



For the Three Months Ended February 28, 2005 For the Six Months Ended February 28, 2005
  Dollar Amount Per Share Amount(1) Dollar Amount Per Share Amount (1)
NET INCOME $ 209,786
$ 406,059
Minority interest in Accenture SCA and Accenture Canada Holdings Inc. (2) 128,688
250,369
Net income for diluted earnings per share calculation 338,474 $ 0.35 656,428 $ 0.67

Pro forma stock option and employee share purchase plan compensation expense, net of tax (3) (35,556) (0.04) (57,628) (0.06)
Less reorganization benefits (42,239) (0.04) (42,239) (0.04)
Net income for diluted earnings per share calculation, adjusted $ 260,679 $ 0.27 $ 556,561 $ 0.57
Weighted average diluted shares
980,080,181
980,208,047

[1] The per share amount is calculated as the dollar amount divided by the number of weighted average diluted shares.
[2] Diluted earnings per share assumes the redemption and exchange of all Accenture SCA Class I common shares and Accenture Canada Holdings Inc. exchangeable shares, respectively, for Accenture Ltd Class A common shares, on a one-for-one basis.
[3] Calculated as pre-tax stock option and employee share purchase plan compensation expense of $50,794 and $82,326 for the three and six months ended February 28, 2006, respectively, applying an average effective tax rate of 30%.
[4] May not total due to rounding.

ACCENTURE LTD
CONSOLIDATED BALANCE SHEETS
February 28, 2006 and August 31, 2005
(In thousands of U.S. dollars)

February 28, 2006 August 31, 2005

(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,034,034 $ 2,483,990
Short-term investments 312,760 463,460
Receivables from clients, net 1,957,297 1,752,937
Unbilled services 1,240,684 1,353,676
Other current assets 603,221 631,204
Total current assets 6,147,996 6,685,267
NON-CURRENT ASSETS:
Unbilled services 144,086 472,430
Investments 193,037 262,873
Property and equipment, net 723,409 693,710
Other non-current assets 916,124 843,072
Total non-current assets 1,976,656 2,272,085
TOTAL ASSETS $ 8,124,652 $ 8,957,352
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term debt $ 24,450 $ 31,072
Accounts payable 757,937 807,317
Deferred revenues 1,535,290 1,284,303
Accrued payroll and related benefits 1,343,653 1,430,998
Other accrued liabilities 1,578,046 1,377,443
Total current liabilities 5,239,376 4,931,133
NON-CURRENT LIABILITIES:
Long-term debt 28,038 44,116
Other non-current liabilities
1,108,761 1,304,230
Total non-current liabilities 1,136,799 1,348,346
MINORITY INTEREST 587,372 980,959
EQUITY:
Total Shareholders' equity 1,161,105 1,696,914
TOTAL LIABILITIES AND EQUITY $ 8,124,652 $ 8,957,352

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