Accenture Reports Strong Fourth-Quarter and Year-End Results

-- Fourth-Quarter Revenues and Operating Income Significantly Exceed Expectations; Company Reiterates Comfort with First-Quarter Estimates --

NEW YORK, October 11, 2001 - Accenture (NYSE: ACN) today reported strong results for the fourth quarter and fiscal year ended August 31, 2001, exceeding the company’s previously stated expectations and analysts’ consensus estimates of revenues, operating income and earnings per share.

Revenues before reimbursements ("net revenues") for the year were $11.44 billion, an increase of 17 percent in US dollars and 23 percent in local currency over the prior fiscal year. Net revenues for the fourth quarter were $2.78 billion, an increase of 11 percent in US dollars and 16 percent in local currency over the fourth quarter of the prior year.

Income before minority interest on a pro forma basis for the fiscal year, excluding one-time IPO and other related charges, was $922 million. Income before minority interest on a pro forma basis for the fourth quarter was $104 million, excluding one-time charges. Diluted earnings per share, on the same basis, were $0.91 for the year ($0.81 excluding investment gains) and $0.12 for the fourth quarter.

Excluding one-time charges, operating income on a pro forma basis was $1.45 billion, or 13 percent of net revenues, for the year, and $257 million, or 9 percent of net revenues, for the fourth quarter.

"Our strong performance in the fourth quarter and over the past year is testament to the diversity of our business by both industry and geography and to our commitment to bringing innovation to life for our clients," said Joe W. Forehand, Accenture chairman and CEO. "We significantly exceeded our revenue and operating income targets, which is a notable accomplishment given the current economic environment. With our aggressive focus on both revenue growth and effective cost-management, we believe Accenture is among the best-positioned companies in the services sector."

Contributing to Accenture’s strong fiscal-year performance was double-digit growth in all five of its global market units and in its two largest geographic regions. Net revenues for Accenture’s Government global market unit in fiscal 2001 topped $1 billion for the first time, an increase of 26 percent over fiscal 2000. The Products global market unit reported a 20 percent increase in net revenues, to $2.27 billion. The Resources global market unit reported net revenues for the year of $1.97 billion, a 19 percent increase. The Communications & High Tech global market unit grew net revenues to $3.23 billion, a 15 percent increase over fiscal 2000. The Financial Services global market unit reported net revenues of $2.90 billion, up 14 percent over fiscal 2000.

Accenture’s net revenues in the Americas were $6.18 billion in fiscal 2001, an increase of 17 percent in US dollars and 18 percent in local currency over the prior year. Net revenues in Accenture’s Europe, Middle East, Africa and India (EMEAI) region were $4.44 billion in fiscal 2001, an increase of 20 percent in US dollars and 32 percent in local currency. In the Asia Pacific region, net revenues were $826 million, an increase of 6 percent in US dollars and 17 percent in local currency.

"Our success over the past year was due to many factors, including the dedication of our professionals, who are completely focused on delivering value to clients, and the strength of our client relationships, many of which span more than a decade," said Forehand. "We are also pleased by our clients’ growing interest in business transformation outsourcing - the combination of outsourcing, consulting and other capabilities to improve key business functions and achieve a significant and sustainable improvement in enterprise-level performance."

Accenture’s net revenues derived from outsourcing, which includes business transformation outsourcing, increased 20 percent last year, to $1.98 billion, accounting for more than 17 percent of the company’s net revenues in fiscal 2001.

Accenture stated that it expects to take a one-time charge of no more than $40 million in the first quarter of fiscal 2002 for costs related to the impact of the September 11 tragedy. Even with the charge, the company remains comfortable with first-quarter estimates provided by analysts at the time of the Accenture initial public offering.

About Accenture

Accenture is the world’s leading provider of management and technology consulting services and solutions, with more than 75,000 people in 46 countries delivering a wide range of specialized capabilities and solutions to clients across all industries. Accenture operates globally with one common brand and business model designed to enable the company to serve its clients on a consistent basis around the world. Under its strategy, Accenture is building a network of businesses to meet the full range of any organization’s needs - consulting, technology, outsourcing, alliances and venture capital. Its home page is http://www.accenture.com.

Accenture will host a conference call at 8:00 a.m. EDT today to discuss its fourth-quarter 2001 and year-end financial results. To participate, please dial +1 (800) 230-1085 [+1 (612) 288-0337 International] approximately 15 minutes prior to 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 http://www.accenture.com.

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 International] and entering the passcode 606616 from 2:15 PM (EDT) Thursday, October 11 through Thursday, October 18.

# # #

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 "Risk Factors" in our registration statement on Form S-1 filed with the Securities and Exchange Commission.

This is Accenture’s first quarterly earnings announcement as a public company, having completed its initial public offering on July 19, 2001. As a result of the transition from a private partnership to a public company, Accenture is not able to provide meaningful, comparative historical figures, with the exception of revenues, for the full fiscal year and fourth quarter of fiscal 2000.

ACCENTURE LTD

For the Three Months Ended August 31, 2001

(unaudited)

(In thousands of U.S. dollars, except per-share amounts)

As reported
Adjustments
Pro forma
REVENUES:
Revenues before reimbursements (Net revenues)
$2,777,435
-
$2,777,435
Reimbursements
$428,822
-
$428,822
Revenues
$3,206,257
-
$3,206,257
OPERATING EXPENSES:

Cost of services:

Cost of services before reimbursable expenses

Reimbursable expenses

Cost of services

Sales and marketing

General and administrative costs

Reorganization and rebranding costs

Restricted stock-based compensation

-

1,689,852.

-

428,822.

2,118,674.

446,050.

384,959.

71,381.

967,110.

-

-

-

-

-

-

(71,381)

(967,110)

-

1,689,852.

-

428,822.

2,118,674.

446,050.

384,959.

-

-

Total operating expenses
3,988,174
(1,038,491)
2,949,683
OPERATING INCOME (LOSS)
(781,917)
1,038,491
256,574

Gain on investments, net

Interest income

Interest expense

Other income (expense)

Equity in losses of affiliates

(72,684)

20,165.

(17,863)

(3,820)

(8,563)

-

-

-

-

-

(72,684)

20,165.

(17,863)

(3,820)

(8,563)

INCOME (LOSS) BEFORE TAXES
(864,682)
1,038,491
173,809
Provision for taxes
82,288
(12,964)
69,324
INCOME (LOSS) BEFORE MINORITY INTEREST
(946,970)
1,051,455.
104,485.
Minority interest
577,188
(647,687)
(70,499)
NET INCOME (LOSS)
$(369,782)
$403,768

$

33,986

EARNINGS PER SHARE:

- Basic

- Diluted

$(1.25)

$(1.25)

-

-

$0.12

$0.12

WEIGHTED AVERAGE SHARES:

- Basic

- Diluted

295,392,338

899,711,420

-

-

295,392,338

899,711,420

Footnotes

Adjustments include one-time charges of rebranding costs of $13 million to rename the organization Accenture; reorganization charges of $58 million to complete the transition to a corporate structure and the initial public offering; $967 million for the one-time grants of restricted share units to partners, former partners and employees; and income taxes on the above plus tax costs of reorganization, which totaled ($13) million. Diluted earnings per share would have been $0.10 if shares outstanding at August 31, 2001, had been outstanding for the full year.

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

CONSOLIDATED STATEMENT OF INCOME

For the Year Ended August 31, 2001

(unaudited)

(In thousands of U.S. dollars, except per-share amounts)

As reported
Adjustments
Pro forma
REVENUES:
Revenues before reimbursements (Net revenues)
$11,443,720
-
$11,443,720
Reimbursements
$1,904,152
-
$1,904,152
Revenues
$13,347,872
-
$13,347,872
OPERATING EXPENSES:
Cost of services:

Cost of services before reimbursable

Reimbursable expenses

Cost of services

6,199,213

1,904,152

8,103,365

725,163

-

725,163

6,924,376

1,904,152

8,828,528

Sales and marketing
1,217,343
289,705
1,507,048
General and administrative costs
1,515,683
44,383
1,560,066
Reorganization and rebranding costs
848,615
(848,615)
-
Restricted stock-based compensation
967,110
(967,110)
-
Total operating expenses
12,652,116
(756,474)
11,895,642
OPERATING INCOME
695,756
756,474
1,452,230

Gain on investments, net

Interest income

Interest expense

Other income

Equity in losses of affiliates

107,016

79,778

(43,278)

16,973

(61,388)

-

-

(15,418)

-

-

107,016

79,778

(58,696)

16,973

(61,388)

INCOME BEFORE TAXES
794,857
741,056
1,535,913
Provision for taxes
502,616
111,549
614,165
INCOME BEFORE ACCOUNTING CHANGE AND MINORITY INTEREST
292,241
629,507
921,748
Cumulative effect of accounting change
187,974
(187,974)
-
INCOME BEFORE MINORITY INTEREST
480,215
441,533
921,748
Minority interest
577,188
(1,122,033)
(544,845)
NET INCOME
$ 1,057,403
$ (680,500)
$ 376,903
EARNINGS PER SHARE:

Basic

Diluted

$ 0.91

\

$ 0.91

OUTSTANDING SHARES AT AUGUST 31, 2001:

Basic

Diluted

412,705,954

\

1,008,163,290

Footnote

Adjustments include one-time items and amounts necessary to present results prior to May 31, 2001, in corporate form as if the reorganization had occurred on September 1, 2000. One-time items include rebranding costs of $144 million to rename the organization; reorganization charges of $705 million to complete the transition to a corporate structure and the initial public offering; $967 million for the one-time grants of restricted share units to partners, former partners and employees; income of $188 million due to the adoption of FAS 133; and the related income tax impact, for a credit of $106 million. These one-time items were disclosed in the pro forma financial information section of the Accenture prospectus and are updated here to include activity for the fourth quarter ended August 31, 2001. Adjustments necessary to present results prior to May 31, 2001, on a corporate basis include $1,059 million for partner compensation and $15 million of interest. In addition, minority interest has been adjusted as if the minority had existed for the full year. Earnings per share is based on the assumption that shares and share equivalents outstanding as of August 31, 2001, were outstanding for the entire year.

ACCENTURE LTD

COMBINED AND CONSOLIDATED BALANCE SHEETS

For the Three Months Ended August 31, 2001

(unaudited)

(In thousands of U.S. dollars, except per-share amounts)

Combined Balance Sheet
Consolidated Balance Sheet
2000
2001
ASSETS
CURRENT ASSETS:

Cash and cash equivalents

Receivables from clients

Unbilled services

Other current assets

$1,270,516.

1,450,555.

682,935.

595,279.

$1,880,083.

1,498,812.

731,802.

468,940.

Total current assets
3,999,285
4,579,637
NON-CURRENT ASSETS:

Investments

Property and equipment, net

Other non-current assets

509,665.

705,508.

236,839.

324,139.

822,318.

335,262.

Total non-current assets
1,452,012
1,481,719
TOTAL ASSETS
$5,451,297
$6,061,356
LIABILITIES AND EQUITY
CURRENT LIABILITIES:

Short-term debt

Accounts payable

Deferred revenues

Accrued payroll and related benefits

Other accrued liabilities

$194,686.

233,737.

948,390.

700,843.

906,323

.

$190,669.

371,794.

810,043.

1,050,385.

1,748,611.

Total current liabilities
2,983,979.
4,171,502.
NON-CURRENT LIABILITIES:

Long-term debt

Other non-current liabilities

98,865.

-.

1,090.

1,191,332

Total non-current liabilities
98,865
1,192,422
MINORITY INTEREST
-
422,021
EQUITY:
-
275,411

Shareholders’ equity

Partners’ capital

-

2,368,453.

275,411

-

Total equity
2,368,453
275,411.
TOTAL LIABILITIES AND EQUITY
$5,451,297.
$6,061,356
###

Roxanne Taylor

+1 (917) 452 5106

roxanne.taylor@accenture.com