Accenture Reports Strong First-Quarter Results

Company Achieves Solid Growth in Revenues and Operating Income

NEW YORK; Jan. 9, 2002 - Accenture (NYSE: ACN) today reported strong results for the first quarter of fiscal year 2002, ended Nov. 30, 2001. These results are in line with the company’s announcement in December in which it said it would exceed the analysts’ projections at that time.

Revenues before reimbursements ("net revenues") for the first quarter were approximately $2.99 billion, the highest quarterly revenues in the company’s history, representing an increase of 6 percent in both US dollars and local currency over the first quarter of fiscal 2001. Operating income was $414 million, or 14 percent of net revenues for the quarter.

Income before minority interest, excluding investment writedowns and the related tax effect, was $258 million, compared to $232 million on a pro forma basis in the same quarter of the previous fiscal year. Diluted earnings per share, excluding investment writedowns and the related tax effect, were $0.25, compared to $0.23 on a pro forma basis in the same quarter of the previous fiscal year, an increase of 11 percent. Income before minority interest, including investment writedowns and the related tax effect, was $200 million, and diluted earnings per share, on the same basis, were $0.20.

"Our strong performance in the first quarter, especially during a period of economic uncertainty, demonstrates our ability to deliver the innovative solutions our clients need," said Joe W. Forehand, Accenture chairman and CEO. "Our continued focus on business transformation helped us achieve 32 percent revenue growth in outsourcing during the quarter.

"With new sales of approximately $5.6 billion in the first four months of the fiscal year, we are succeeding in executing our growth strategy, enabling us to continue to build value for our shareholders," added Forehand.

Strong growth in three of Accenture’s five global market units contributed to its solid first-quarter results. Net revenues for Accenture’s Government global market unit were $337 million, a 58 percent increase over the first quarter of fiscal 2001. Accenture’s Products and Resources global market units reported net revenues of $650 million and $541 million, respectively, increases of 22 percent and 17 percent.

First-quarter net revenues for the Communications & High Tech and Financial Services global market units were $743 million and $717 million, respectively, down 14 percent and 6 percent from their first-quarter fiscal 2001 levels, reflecting the challenges that the financial services, communications and technology sectors faced during the period.

Net revenues in Accenture’s Europe, Middle East, Africa and India (EMEAI) geographic region increased 26 percent in US dollars over the first quarter of fiscal 2001, to $1.33 billion, and were a significant factor in the company’s overall growth during the period. Net revenues in the Asia Pacific region decreased 2 percent in US dollars, to $221 million, but increased 6 percent in local currency. Net revenues in the Americas region were $1.44 billion, down 7 percent in US dollars and 6 percent in local currency.

As the company previously stated, its loss on investments in the first quarter included a $90 million charge related to the company’s venture and investment portfolio. With respect to its previously reported plan to reposition this portfolio, Accenture intends to present potential alternatives to its Board for consideration, and it expects to finalize an alternative by the end of the second quarter of fiscal 2002.

Looking ahead, Accenture said that it is comfortable with analysts’ consensus earnings estimates for the second quarter of fiscal 2002, ending Feb. 28, 2002, and that analysts’ consensus estimates for the remainder of the fiscal year are reasonable.

Accenture will host a conference call at 8:00 a.m. (EST) today to discuss its first-quarter fiscal 2002 financial results. To participate, please dial +1 (800) 230-1074 [+1 (612) 288-0337 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

A replay of the conference call will be available at, or by dialing +1 (800) 475-6701 [+1 (320) 365-3844 outside the United States, Puerto Rico and Canada] and entering the passcode 618946 from 1:15 p.m. (EST) Wednesday, Jan. 9 through 11:59 p.m. (EST) Wednesday, Jan. 23.

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

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 our most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

Consolidated Income Statement
Combined Pro Forma Income Statement
For the Three Months Ended November 30, 2001 and 2000
(In thousands of U.S. dollars except share data)
Consolidated Income Statement 2001 Combined Pro forma
Income Statement 2000 (1)
% of Net Revenues % of Net Revenues
Revenues before reimbursements (Net revenues) $2,988,630 100% $2,831,298 100%
Reimbursements 419,880 14% 406,994 14%
Revenues 3,408,510 114% 3,238,292 114%
Cost of services:
Cost of services before reimbursable expenses 1,806,181 60% 1,710,590 61%
Reimbursable expenses 419,880 14% 406,994 14%
Cost of services 2,226,061 74% 2,117,584 75%
Sales and marketing 360,235 12% 326,818 11%
General and administrative costs 407,957 14% 405,477 14%
Total operating expenses 2,994,253 100% 2,849,879 100%
OPERATING INCOME 414,257 14% 388,413 14%
Gain (loss) on investments, net (94,737) (3%) 219,104 8%
Interest income 14,785 0% 22,549 1%
Interest expense (9,770) 0% (9,430) (1%)
Other income (expense) (7,933) 0% 6,675 0%
Equity in gains (losses) of affiliates 6,201 0% (20,441) (1%)
INCOME BEFORE TAXES 322,803 11% 606,870 21%
Provision for taxes 122,665 4% 244,393 8%
INCOME BEFORE MINORITY INTEREST (2) 200,138 7% 362,477 13%
Minority interest (118,462) (4%) (214,000) (8%)
NET INCOME $81,676 3% $148,477 5%
- Basic $0.20 $0.36
- Diluted $0.20 $0.36
Add Back: Gain (loss) on investments, net of tax impact (58,037) 130,868
- Basic $ 0.26 $0.23
- Diluted $0.25 $0.23
- Basic 410,488,771 412,705,954
- Diluted 1,014,448,500 1,008,163,290

Notes to Consolidated and Combined Pro Forma Income Statements
(In thousands of U.S. dollars except share data)

  1. Pro forma results for 2000 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, 1999. One-time items eliminated include reorganization costs of $5,000 relating to our transition to a corporate structure, rebranding costs of $25,000 to rename the organization, and income of $188,000 due to the adoption of SFAS 133. Adjustments to reflect the transition to a corporate structure include $481,000 of operating expense for partner compensation and $5,000 of interest expense related to retirement benefits payable to 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 November 30, 2000. 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.

  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.

Consolidated Balance Sheets
August 31, 2001 and November 30, 2001
(In thousands of U.S. dollars)

August 31, 2001 November 30, 2001
Cash and cash equivalents $1,880,083 $1,129,517
Receivables from clients, net 1,498,812 1,534,348
Unbilled services 731,802 930,389
Other current assets 468,940 479,289
Total current assets 4,579,637 4,073,543
Investments 324,139 259,906
Property and equipment, net 822,318 787,121
Other non-current assets 335,262 302,101
Total non-current assets 1,481,719 1,349,128
TOTAL ASSETS $6,061,356 $5,422,671
Short-term debt $190,669 $218,442
Accounts payable 371,794 360,724
Deferred revenue 810,043 719,063
Accrued payroll and related benefits 1,050,385 1,107,426
Other accrued liabilities 1,755,929 955,142
Total current liabilities 4,178,820 3,360,797
Long-term debt 1,090 4,362
Other non-current liabilities 1,191,332 1,178,372
Total non-current liabilities 1,192,422 1,182,734
MINORITY INTEREST 407,926 526,388
Shareholders’ equity 282,188 352,752
Total equity 282,188 352,752
TOTAL LIABILITIES AND EQUITY $6,061,356 $5,422,671

Summary of Revenues
For the Three Months Ended November 30, 2001 and 2000
(In thousands of U.S. dollars)
2001 2000 Percent increase/
Percent increase/
(decrease)Local currency
Percent of Total2001 Net Revenues
Communications & High Tech $743,215 $864,870 (14)% 25%
Financial Services 716,707 758,563 (6)% 24%
Government 336,519 213,103 58% 11%
Products 649,829 532,404 22% 22%
Resources 540,908 460,750 17% 18%
Other 1,452 1,608 (10)% 0%
TOTAL Net Revenues 2,988,630 2,831,298 6% 100%
Reimbursements 419,880 406,994 3%
TOTAL REVENUES $3,408,510 $3,238,292 5%
Americas $1,441,338 $1,551,091 (7)% (6)% 48%
EMEAI 1,326,446 1,055,934 26% 23% 44%
Asia Pacific 220,846 224,273 (2)% 6% 8%
2,988,630 2,831,298 6% 6% 100%
Reimbursements 419,880 406,994 3%
TOTAL REVENUES $3,408,510 $3,238,292 5%

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