Roxanne Taylor
New York
+1 (917) 452 5106

July 12, 2002
Accenture Reports Third-Quarter Results

NEW YORK; July 12, 2002Accenture (NYSE: ACN) today reported results for the third quarter of fiscal 2002, ended May 31, 2002.

Revenues before reimbursements ("net revenues") for the third quarter were $2.98 billion. This represents an increase of 1 percent in US dollars and 3 percent in local currency over the third quarter of fiscal 2001. Operating income for the quarter was $435 million, or 14.6 percent of net revenues. Operating cash flow for the quarter was $291 million.

Income before minority interest for the third quarter was $274 million, compared to $262 million on a pro forma basis, adjusted to exclude losses on investments, in the same quarter of fiscal 2001. Diluted earnings per share were $0.27, compared to $0.26 on an adjusted pro forma basis in the same quarter of fiscal 2001 and exceeding analysts’ expectations of $0.26.

Net income for the third quarter was $114 million, compared to $105 million on a pro forma basis in the same quarter last year.

“Given what continues to be a challenging economic situation, we are pleased that our clients continue to call on the talents of our people to design and bring about the changes necessary to improve their business performance,” said Joe W. Forehand, Accenture chairman and CEO. “Our company remains financially strong, and we continue to focus on controlling costs and investing in our business for future growth.”

As stated in the third-quarter Form 10-Q it plans to file with the Securities and Exchange Commission on July 15, the company said, “In response to the continued difficult economic conditions, we increased our focus to further reduce our cost structure. As a result of expense management efforts, including executive level workforce actions, we reduced previously recognized annual bonus expense and recorded modest amounts of severance and other costs. The net effect of these actions was a decrease in operating expenses of approximately $30 million.”

The company expects diluted earnings per share for the fourth quarter of fiscal 2002 to be approximately $0.16, consistent with the analysts’ consensus estimate. For the full fiscal year 2002, Accenture expects diluted earnings per share to be $0.65 on a reported basis, or $0.91 when adjusted to exclude net gains or losses on investments. Accenture also said that it is comfortable with earnings estimates of $1.05 for fiscal year 2003.

Strong growth in two of Accenture’s five operating groups contributed to its solid third-quarter results. Net revenues for the Government and Communications & High Tech operating groups were $328 million and $883 million, respectively, increases of 19 percent and 8 percent, respectively, over the third quarter of fiscal 2001. The improvement in Communications & High Tech reflects the benefit of large transformational outsourcing contracts booked during the first half of fiscal 2002.

Third-quarter net revenues for the Products and Resources operating groups were $612 million and $507 million, respectively, representing in each case an increase of 3 percent over the third quarter of fiscal 2001. The Financial Services operating group reported net revenues of $646 million, down 16 percent from third-quarter fiscal 2001 levels. The decrease in the Financial Services operating group’s revenues reflects the continued weakness of the capital markets and banking industries.

Net revenues in the Americas region were $1.53 billion, representing flat growth in US dollars and 1 percent growth in local currency over the third quarter of fiscal 2001. Net revenues in Accenture’s Europe, Middle East and Africa (EMEA) geographic region were $1.26 billion, an increase of 4 percent in US dollars and 6 percent in local currency. Net revenues in the Asia Pacific region were $190 million, a decrease of 8 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 third-quarter fiscal 2002 financial results. To participate, please dial +1 (888) 276-0010 [+1 612-333-4911 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 at www.accenture.com, or by dialing +1 800-475-6701 [+1 320-365-3844 outside the United States, Puerto Rico and Canada] and entering the passcode 642706 from 1:15 p.m. EDT Friday, July 12 through 11:59 p.m. EDT Friday, July 26.

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.



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

Three Months Ended
May 31,
2002                              2001
% increase/
(decrease) US$
% increase/
(decrease) Local
currency
% of Total
Net
Revenues
OPERATING GROUPS
Communication & High Tech $882,620 $817,514 8% - 30%
Financial Services 646,404 765,528 (16) - 22
Government 328,106 276,861 19 - 11
Products 612,375 594,285 3 - 20
Resources 506,630 494,134 3 - 17
Other 4,543 4,967 (9) - 0
TOTAL Net Revenues 2,980,678 2,953,289 1 - 100
Reimbursements 453,129 565,975 (20) - -
TOTAL REVENUES $3,433,807 $3,519,264 (2) - -
GEOGRAPHY
Americas $1,529,802 $1,533,978 0 1 52
EMEA 1,261,164 1,212,929 4 6 42
Asia Pacific 189,712 206,382 (8) (5) 6
TOTAL Net Revenues 2,980,678 2,953,289 1 3 100
Reimbursements 453,129 565,975 (20) - -
TOTAL REVENUES $ 3,433,807 $ 3,519,264 (2) - -

For the Nine Months Ended
May 31,
2002                              2001
% increase/
(decrease) US$
% increase/
(decrease) Local
currency
% of Total
2002 Net
Revenues
OPERATING GROUPS
Communication & High Tech $ 2,377,201 $ 2,491,831 (5)% - 27%
Financial Services 2,025,750 2,230,230 (9) - 23
Government 988,312 727,758 36 - 11
Products 1,909,179 1,769,112 8 - 21
Resources 1,572,969 1,428,878 10 - 18
Other 9,186 18,476 (50) - 0
TOTAL Net Revenues 8,882,597 8,666,285 2 - 100
Reimbursements 1,369,822 1,475,330 (7) - -
TOTAL REVENUES $ 10,252,419 $ 10,141,615 1 % - -
GEOGRAPHY
Americas 4,441,866 4,649,042 (4) (3) 50
EMEA 3,852,456 3,393,690 14 14 43
Asia Pacific 588,275 623,553 (6) 1 7
TOTAL Net Revenues 8,882,597 8,666,285 2 4 100
Reimbursements 1,369,822 1,475,330 (7) - -
TOTAL REVENUES $ 10,252,419 $ 10,141,615 1 % - -

ACCENTURE LTD
CONSOLIDATED INCOME STATEMENT
COMBINED PRO FORMA INCOME STATEMENT
For the Three Months Ended May 31, 2002 and 2001
(unaudited)
(In thousands of U.S. dollars except share data)
  Consolidated
Income Statement 2002
Combined Pro forma
Income Statement 2001 (1)
                          % of Net Revenues                         % of Net Revenues
REVENUES:
Revenues before reimbursements (Net revenues) $ 2,980,678 100% $ 2,953,289 100%
Reimbursements 453,129 15 565,975 19
Revenues 3,433,807 115 3,519,264 119
OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses 1,752,922 59 1,732,450 59
Reimbursable expenses 453,129 15 565,975 19
Cost of services 2,206,051 74 2,298,425 78
Sales and marketing 413,897 14 389,020 13
General and administrative costs 378,873 13 377,770 13
Total operating expenses 2,998,821 101 3,065,215 104
OPERATING INCOME 434,986 15 454,049 15
Gain (loss) on investments, net (918) 0 (9,459) 0
Interest income 9,510 0 17,218 1
Interest expense (12,712) 0 (20,723) (1)
Other income (expense) 13,170 0 (2,720) 0
Equity in losses of affiliates (2,425) 0 (11,164) 0
INCOME BEFORE TAXES 441,611 15 427,201 14
Provision for taxes 167,813 6 170,880 6
INCOME BEFORE MINORITY INTEREST (2) 273,798 9% 256,321 9%
Minority interest (159,337) (5) (151,511) (5)
NET INCOME $114,461 4 $104,810 4
EARNINGS PER SHARE:
Basic $0.28 $0.25
Diluted $0.27 $0.25
ADJUSTED TO EXCLUDE GAIN (LOSS) ON INVESTMENTS, NET
INCOME BEFORE MINORITY INTEREST AS REPORTED $273,798 $256,321
Add Back: Gain (loss) on investments, net of tax impact (569) (5,675)
ADJUSTED INCOME BEFORE MINORITY INTEREST $274,367 $261,996
ADJUSTED EARNINGS PER SHARE:
Basic $0.28 $0.26
Diluted $0.27 $0.26
WEIGHTED AVERAGE SHARES:
Basic 414,463,440 412,705,954
Diluted 1,027,990,942 1,008,163,290

ACCENTURE LTD
CONSOLIDATED INCOME STATEMENT
COMBINED PRO FORMA INCOME STATEMENT
For the Nine Months Ended May 31, 2002 and 2001
(unaudited)
(In thousands of U.S. dollars except share data and per share data)
  Consolidated
Income Statement 2002
Combined Pro forma
Income Statement 2001 (1)
                      % of Net Revenues                     % of Net Revenues
REVENUES:
Revenues before reimbursements (Net revenues) $8,882,597 100% $8,666,285 100%
Reimbursements 1,369,822 15 1,475,330 17
Revenues 10,252,419 115 10,141,615 117
OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses 5,267,211 59 5,234,524 60
Reimbursable expenses 1,369,822 15 1,475,330 17
Cost of services 6,637,033 75 6,709,854 77
Sales and marketing 1,173,032 13 1,060,998 12
General and administrative costs 1,204,832 14 1,175,107 14
Total operating expenses 9,014,897 101 8,945,959 103
OPERATING INCOME 1,237,522 14 1,195,656 14
Gain (loss) on investments, net (306,606) (3) 179,700 2
Interest income 33,550 0 59,613 1
Interest expense (36,256) 0 (40,833) 0
Other income (expense) 14,926 0 20,793 0
Equity in losses of affiliates (8,888) 0 (52,825) (1)
INCOME BEFORE TAXES 934,248 11 1,362,104 16
Provision for taxes 435,535 5 544,841 6
INCOME BEFORE MINORITY INTEREST (2) 498,713 6 817,263 9
Minority interest (291,965) (3) (483,083) (6)
NET INCOME $206,748 2 $334,180 4
EARNINGS PER SHARE:
Basic $0.50 $0.81
Diluted $0.49 $0.81
ADJUSTED TO EXCLUDE GAIN (LOSS) ON INVESTMENTS, NET
INCOME BEFORE MINORITY INTEREST AS REPORTED $498,713 $817,263
Add Back: Gain (loss) on investments, net of tax impact (269,956) 107,820
ADJUSTED INCOME BEFORE MINORITY INTEREST $768,669 $709,443
ADJUSTED EARNINGS PER SHARE:
Basic $0.77 $0.70
Diluted $0.75 $0.70
WEIGHTED AVERAGE SHARES:
Basic 411,525,404 412,705,954
Diluted 1,026,971,327 1,008,163,290

NOTES TO CONSOLIDATED AND COMBINED PRO FORMA INCOME STATEMENTS

(All figures in thousands of U.S. dollars)

  1. (1) For the three months and nine months ended May 31, 2001 Partnership Income (Loss) Before Partner Distributions, as reported under generally accepted accounting principles, was ($190,795) and $1,427,185, respectively. Earnings per share were not presented because Accenture operated as a series of related partnerships and corporations under the control of the 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 $495,000 for the three months ended May 31, 2001 and $508,000 for the nine months ended May 31, 2001 relating to our transition to a corporate structure, rebranding costs of $93,000 for the three months ended May 31, 2001 and $269,000 for the nine months ended May 31, 2001 to rename the organization, and income of $188,000 for the nine months ended May 31, 2001 due to the adoption of SFAS 133. Adjustments to reflect the transition to a corporate structure include $249,000 for the three months ended May 31, 2001 and $1,059,000 for the nine months ended May 31, 2001 of operating expenses for partner compensation and $5,000 for the three months ended May 31, 2001 and $15,000 for the nine months ended May 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 had existed for the three months ended May 31, 2001 and nine months ended May 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. (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
CONSOLIDATED BALANCE SHEET
August 31, 2001 and May 31, 2002
(unaudited)
(In thousands of U.S. dollars)


August 31, 2001 May 31, 2002
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,880,083 $1,113,496
Restricted cash - 104,224
Receivables from clients, net 1,498,812 1,426,113
Unbilled services 731,802 898,704
Other current assets 468,940 532,055
Total current assets 4,579,637 4,074,592
NON-CURRENT ASSETS:
Investments 324,139 94,583
Property and equipment, net 822,318 732,533
Other non-current assets 335,262 533,254
Total non-current assets 1,481,719 1,360,370
TOTAL ASSETS $6,061,356 $5,434,962
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term debt $190,669 $96,185
Accounts payable 371,794 361,321
Deferred revenues 810,043 475,865
Accrued payroll and related benefits 1,050,385 1,232,564
Other accrued liabilities 1,755,929 868,038
Total current liabilities 4,178,820 3,033,973
NON-CURRENT LIABILITIES:
Long-term debt 1,090 3,915
Other non-current liabilities
1,191,332 1,327,647
Total non-current liabilities 1,192,422 1,331,562
MINORITY INTEREST 407,926 574,549
EQUITY:
Shareholders’ equity 282,188 494,878
Total equity 282,188 494,878
TOTAL LIABILITIES AND EQUITY $6,061,356 $5,434,962

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