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TBR 4Q10 Accenture Report

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Technology Business Research is a different kind of research company. Our bottoms-up approach provides a look at the technology industry unlike anything you’ve seen before. We analyze company …

Technology Business Research is a different kind of research company. Our bottoms-up approach provides a look at the technology industry unlike anything you’ve seen before. We analyze company performance in professional services, networking and mobility, computing and hardware, and software on a quarterly basis, leveraging our data to create industry benchmarks and landscapes that provide a business perspective on leaders and laggards and their business plans. We are experts in the business of technology.

Accenture will continue to excel at finding pockets of demand and meeting client needs as the business environment improves across developed economies through 2011.

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  • 1. Technology Business ResearchAccelerating Customer Success Through Business Research TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .
  • 2. PROFESSIONAL SERVICES BUSINESS QUARTERLYSMAccentureFourth Calendar Quarter 2010First Fiscal Quarter 2011 Ended Nov. 30, 2010 TBR OUTLOOK - POSITIVE TBR SCORE (0-10 SCALE)  5.96Publish Date: Jan. 12, 2011Author: Elitsa Bakalova (elitsa.bakalova@tbri.com), PSBQ AnalystContent Editor: Alison Crawford, PSBQ Senior Analyst/ TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C .Project Manager
  • 3. Contents TBR Company Analysis Company Data Models 3 Executive Summary 28 Income Statement 8 Strategy Overview 29 Balance Sheet 11 Corporate SWOT Analysis 30 Service Line Model 14 Financial Model Strategy 31 Operating Group Model 18 Go-to-Market & Services Strategies 32 Geographic Model 22 Alliance & Acquisition Strategies 33 Operating Expense Model 24 Geographic Analysis 35 Financial Strategy Graphs 25 Resource Management Strategy 37 Go-to-Market Graphs SM 27 Future SOFTWARE BUSINESS QUARTERLY TBR Outlook 38 Resource Management Graphs 40 Acquisitions Table 41 Portfolio of Services Table 42 Quarterly Signings Tables 50 Strategic Alliances Tables 52 Worldwide Locations Table3 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 4. Executive SummaryExecutive Summary TBRNew talent and leadership will strengthen Accenture’s focus on meetingclient demand during 2011Key Developments • Accenture is returning to sustainable top-line growth, which, coupled with its stable profit levels, will help the company achieve its long-term profitable growth aspirations.Accenture’s revenue Accenture’s revenue exceeded its guidance range, reaching $6.05 billion, the highest levelis growing and since 2Q08. Consulting & SI, which were hit hard by the recession, are now contributing toincreased signings Accenture’s growth and providing growth opportunities. The company indicates that moreand demand suggest 1 clients have confidence in their businesses and will make more investments in 2011.business growth Lingering economic uncertainty in some geographies (e.g., in Europe), may provide challenges for Accenture during FY11; however, the company’s ability to adjust its portfolio to the market environment positions Accenture for long-term gains.Accenture is making • Accenture continued to leverage acquisitions to expand its offerings and capabilities (e.g.,tuck-in acquisitions three acquisitions announced in November). Accenture’s acquisition strategy remainsto fill gaps in its focused on relatively small-scale, tuck-in acquisitions to fill gaps in its offerings (e.g.,portfolio and TBR SOFTWARE BUSINESS QUARTERLYSM and expand its capabilities and global reach. expand its software offerings)support organic • In FY11, TBR believes Accenture will make more small-scale acquisitions, given its ability togrowth fund such transactions, as well as its history and expertise in integrating companies. 1 • Accenture continues to strengthen its Global Delivery Network (GDN), adding new facilitiesAccenture is in key lower-cost locations (e.g., three new sites in the Philippines). TBR believesexpanding its global Accenture’s GDN is a competitive differentiator for the company due to its global spreadservice delivery (not limited to one or two regions); the global spread allows the company to serve clientscapabilities according to their needs at competitive prices. TBR expects Accenture will further develop 1 its GDN, and LATAM is one example where the company can grow its resources.Accenture has a new • Bill Green, chairman and CEO of Accenture, is stepping down as CEO at the end of 2010CEO, but maintains after six years. Pierre Nanterme, Accenture’s incoming CEO, is fully committed to achievingthe same strategy the goals the company has set for its FY11.4 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 5. Executive Summary TBRAccenture is capturing the wave of demand, as its revenue and signings aresteadily improving and more business opportunities are on the horizonTBR Position: ACCENTURES 4Q10 PERFORMANCE VS. EXPECTATIONSAccenture will continue to excel at finding pockets of (in $ millions) Consensus Guidance Range Actualdemand and meeting client needs as the business Accenture Net Revenue $5,620 $5,600 - $5,800 $6,046environment improves across developed economies Accenture Operating Income N/A N/A $827through 2011. Accenture Non-GAAP EPS $0.75 $0.75- $0.95 $0.81 • Accenture will continue to focus on profitable ACCENTURES 1Q11 GUIDANCE AND EXPECTATIONS growth, and driving its business from several (in $ millions) TBR Estimate Consensus Guidance Range dimensions (e.g., core business, high-growth Accenture Net Revenue $5,736 $5,570 $5,600 - $5,800 offerings and geographic expansion) will be key to Accenture Operating Income $774 N/A N/A its success. Accenture Non-GAAP EPS N/A $0.69 $0.8- $0.95 • Accenture’s ability to serve clients across the whole value chain will help the company gain traction as the economy and investments improve in 2011. Accenture Corporate Strategies TBR SOFTWARE BUSINESS QUARTERLYSM • The return of consulting & SI demand, which • Achieve profitable growth (grow revenue by 8.0% to supported Accenture’s bookings in the service area, 11.0% in local currency and reach operating margin of indicates that clients are increasingly open to invest 13.6% to 13.7% in FY11). in areas such as transformation and growth, as well as operational excellence. By leveraging its strong • Expand business from three dimensions: consulting & SI capabilities and brand, Accenture • Refreshed core business (consulting, technology and will reap further benefits in the near term. outsourcing services) is the primary growth engine. • Hiring activities will continue during FY11 at similar • In addition to core business, grow in service areas – levels to FY10. The key to success is Accenture’s cloud, cybersecurity, analytics, digital services, smart ability to quickly deploy people, allowing the grid, mobility and sustainability. company to not only generate operational • Geographic expansion in six strategic growth markets efficiencies but also meet increasing market (BRIC, Mexico and South Korea) and strengthening demand and successfully provide its improved position in mature markets. offerings portfolio. • Develop talent and maintain a strong balance sheet. 5 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 6. Executive Summary TBRConsulting and SI rebounded strongly, and along with outsourcing,will contribute to overall growth Quarterly Segment Performance 4Q10 Growth Segment Key Changes & Drivers Trends to Monitor Revenue Y/Y • In Consulting, Accenture will see more work in 2011 in areas such as • Accenture’s Consulting & SI operational excellence, growth and business grew across verticals innovation of technology such as financial services, infrastructure. resources, products (grew • SI is rebounding and showing Consulting revenue in APAC), $3.6 communications & high-tech and 14.3% strength in key areas such as & SI billion healthcare (in the Americas). assisting in post-merger integration and rationalization of technology • TBR SOFTWARE SI accounted for Consulting & BUSINESS QUARTERLYSM platforms. 59.0% of net revenue, up 100 • An improving Consulting pipeline, basis points from 58.0% in 4Q09. up 25.0% year-to-year in 4Q10, will help Accenture grow its signings. • Technology Outsourcing is well- • Accenture’s Outsourcing positioned for growth, as clients business grew in verticals such as continue to seek to optimize their resources, communications & $2.5 costs. Outsourcing 9.5% high-tech and health & public billion • In BPO, clients look for cost benefits service (driven by the U.S. in F&A, procurement and industry- Federal sector). specific processes largely in North America and Europe.6 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 7. Executive Summary TBRProfitable growth will be achieved by combining a focus on costmanagement with operational excellenceRevenues• Accenture’s net revenue grew 12.7% year-to-year to $6.05 TBR ACCENTURES NET REVENUE GROWTH AND PROFITABILITY Net Revenue Growth Year-to-year $7,000 30.0% billion in 4Q10. Improving demand in Consulting & SI and $6,000 $5,571 $5,421 $6,046 $5,736 20.0% $5,383 $5,176 strong Outsourcing demand is supporting revenue growth; In $ Millions $5,000 10.0% 12.3% 10.8% however, year-to-year comparisons remain easier due to top- $4,000 -1.7% 8.3% 5.3% 0.0% line contractions during the past quarters. $3,000 $2,000 -10.6% -10.0% -20.0%Expenses $1,000 $445 $400 $491 $445 $535 $479 -30.0%• SG&A expenses as a percentage of revenue fell 70 basis points $0 -40.0% from 19.2% in 4Q09 to 18.5% in 4Q10, resulting from lower 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Es t. G&A costs to actively manage its cost structure and a Net Revenue Net Income Revenue Growth Yea r-to-yea r SOURCE: TBR AND ACCENTURE reduction in bad debt reserve. Higher business development costs caused increases in sales and marketing costs as Accenture focused on growing its pipeline and bookings.Margins TBR SOFTWARE BUSINESS QUARTERLYSM• Gross margin was 32.2%, down 90 basis points from 33.1% in ACCENTURES GROSS AND OPERATING PROFIT AND TBR 4Q09 due to higher subcontractor use and higher recruiting PROJECTIONS and training, especially for new employees, as Accenture 40% 33.1% 34.7% 34.0% focused on satisfying demand and driving growth. Gross and Operating Margin 32.7% 32.2% 32.9% 30%• Operating margin decreased 20 basis points year-to-year to 13.7% in 4Q10, with improved operating margins in three of 20% 13.9% 14.4% 13.2% 13.7% the operating groups, excluding Resources and Health & Public 12.6% 13.5% 10% Service, which had lower contract profitability in some of the public service areas and higher selling costs as Accenture looks 0% for new business. 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Es t. Gros s Ma rgi n Opera ting Ma rgi n• Accenture’s goal to have an operating margin of 13.6% to SOURCE: TBR AND ACCENTURE 13.7% for FY11 is attainable due to its overall cost management and focus on operational excellence.7 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 8. Executive Summary TBRAccenture’s scores reflect its expanded revenue base, stable profitabilityand high utilization TBR Company Average Standard CALENDAR QUARTER RESULTS TBR SCORING SUMMARY:FINANCIAL METRICS Score Figure in Class Deviation/2 4Q09 1Q10 2Q10 3Q10 4Q10Operating Margin 5.65 13.7% 9.7% 6.1% Financial Model Strategy: 5.73 5.91 5.96 6.03 6.23Current Ratio 4.42 1.47 1.77 52.4% Go-to-Market & Services Strategies: 5.89 6.23 6.68 6.31 6.46Debt-to-Asset Ratio 3.65 0.74 0.57 12.7% Resource Management Strategy: 5.37 5.10 5.03 4.97 5.19Return on Assets (TTM) 6.59 15.2% 8.1% 3.4% TOTAL AVERAGE TBR SCORE: 5.66 5.75 5.89 5.77 5.96Return on Equity (TTM) 8.17 55.7% 19.2% 11.5%TOTAL AVERAGE TBR SCORE 6.23 TBR Company Average StandardGO-TO-MARKET & SERVICES METRICS Score Figure in Class Deviation/2 Accenture is outperforming its peersRevenue (in $ Millions) 7.64 $6,046 $2,421 $1,372 through its financial metrics, dueRevenue Growth YTY 5.21 12.3% 9.6% 13.4% largely to its stable operating incomeBacklog/Revenue 6.50 2.49 1.92 0.38 and net income. Accenture’s solidDay Sales Outstanding 6.96 42.38 64.96 11.49 revenue in 4Q10 has led theTOTAL AVERAGE TBR SCORE SOFTWARE BUSINESS QUARTERLY 6.46 SM TBR company to outperform its peers in TBR Company Average Standard the Go-To-Market & Services metrics,RESOURCE MANAGEMENT METRICS Score Figure in Class Deviation/2 as this was the second-highestGross Margin 5.25 32.2% 30.7% 6.0% quarterly revenue ever reported byOperating Expenses as a % of Revenue 5.27 18.5% 19.8% 4.7% Accenture.Revenue per Employee (TTM) 4.00 $112,948 $182,013 $69,263Operating Income per Employee (TTM) 4.86 $15,230 $18,169 $21,461Utilization Rate 8.35 87.0% 77.2% 2.9%Turnover 4.62 15.0% 14.1% 2.4%TOTAL AVERAGE TBR SCORE 5.19Key Represents an area where Accenture is currently challenged versus peers Represents an area where Accenture is outperforming its peers Represents an area where Accenture is neither significantly outperforming nor underperforming its peers 8 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 9. Strategy Overview TBRAccenture is seeing success (e.g., revenue and signings growth) due to itsfocus on increasing its business momentum by delivering value to clients Key Strategies • Accenture’s reshaped portfolio (i.e., improved • Increase Accenture’s business momentum by focusing on delivering core offerings and investment in new offerings Overall like analytics, cloud computing, etc.) is proving value to the client. attractive to clients. Accenture is seeing improvement in its top line and signings as well as a healthy bottom line – momentum that will continue during FY11. Deliver profitable growth: • In addition to investment in growth, Accenture Financial • Grow FY11 revenue by 8% to 10% in has taken steps to run as a high-performance local currency, faster than the market. business (e.g., focus on operational • Reach operating margin of 13.6% to efficiency, higher offshore TBR SOFTWARE BUSINESS QUARTERLYSM leverage, automation for service 13.7% in FY11, up year-to-year by 10 to 20 basis points. delivery, creating the role of chief performance officer in FY10). Given such measures, TBR expects the company to reach its FY11 profitability targets. Grow business in three dimensions: • Accenture will continue to attract clients with its Go-To-Market • Refreshed core business is core business – consulting, technology and Accenture’s primary growth engine. outsourcing services – and will see near-term success given the improving market environment. • Develop capabilities outside of core business in growth service areas. • Accenture continues to gain traction in areas like analytics (currently has ~70 client engagements). • Expand geographically in six strategic TBR notes that the competition in those service growth markets and gain traction in areas is increasing due to growth opportunities, new markets. which will challenge Accenture’s development.9 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 10. Strategy Overview TBRAccenture is using alliances and acquisitions to develop its portfolio andis investing in hiring and training to address increasing market demand Key Strategies • Make strategic alliances to expand in • Alliances are key to the development ofAlliances & new areas of technology and vertical Accenture’s portfolio, especially in new serviceAcquisitions specific-offerings. areas with high-growth potential such as cloud computing, analytics and public sector offerings • Leverage tuck-in acquisitions to fill gaps (e.g., Component Tax Solution powered by in its portfolio. Oracle). • TBR expects additional tuck-in acquisitions during FY11, as Accenture looks to supplement its organic growth and fill gaps in its portfolio, IP and vertical expertise. Recruit people to expand GDN and • • Accenture will continue to increase its headcountResources & accommodate for demand. due to hiring initiatives related to market growthInvestments TBR SOFTWARE BUSINESS QUARTERLYSM • Develop and increase leverage of expectations and its focus on building out global delivery capabilities. resources in the GDN. • Invest in automation to offer • The development and shifting of service delivery differentiated, less risky to the GDN – especially for outsourcing and, implementations with more rapid ROI. increasingly, SI – will support Accenture’s long- term profitability and attract clients. • Invest in training (e.g., technical, functional, industry, managerial and • Standard frameworks such as the Global Delivery leadership) and professional Suite are creating service delivery efficiencies development to gain the necessary that also generate bottom-line benefits and help skills to provide high-quality services. decouple the linearity of headcount growth.10 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 11. Strategy Overview TBR Hiring will help Accenture address improving market demandTBR Assessment of Key Strategy: Recruit people to expand GDN and accommodate for demand Accenture has been expanding its headcount to address improving demand in the IT Accenture has services market and support its future growth.shifted 77% of its • During 4Q10, Accentures headcount reached 210,951 people, up 20% year-to-year from GDN headcount 4Q09. The notable change is the uplift in Accenture’s GDN headcount as well as in itsto near/offshore Consulting & Solutions people. regions and will • The GDN reached 120,000 people in 4Q10, or 57% of Accenture’s total headcount, up from continue toexpand in lower- 94,800 in 4Q09. Near/offshore resources now account for 77% of the GDN headcount,cost regions and which TBR believes will help the company improve its profitability. across service • The key focus for lower-cost resource growth is expansion in India and the Philippines. lines with • India has ~53,000 people and now accounts for nearly 45% of Accenture’s GDN and improving has 19 global delivery centers of the 50 total GDN centers. demand • In the Philippines, Accenture is adding three new outsourcing facilities, growing headcount from ~20,000 in 4Q10 to 25,000 in 3Q11 (end of FY11). TBR SOFTWARE BUSINESS QUARTERLYSM • Driven by signs of improving demand, Accenture is now ACCENTURES HEADCOUNT AND GROWTH boosting its Consulting & Solutions headcount (up 27%TBR 250,000 year-to-year to 130,983). This headcount was declining Headcount Growth Y/Y 35.0% 200,000 for most of 2009, as Accenture was adjusting capacity to 25.0% the challenging market. New talent will help theHeadcount 150,000 15.0% company accelerate consulting & SI performance and 100,000 5.0% accommodate for growing consulting bookings (up 16.4% 50,000 -5.0% year-to-year in 4Q10). 0 -15.0% • During the rest of FY11, Accenture will continue with its 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 global hiring initiative with the goal of hiring at least Total Hea dcount Gl oba Del i very Network (GDN) 64,000 people across its GDN. We believe Accenture will Total hea dcount % Δ y/y GDN hea dcount % Δ y/ySOURCE: ACCENTURE AND TBR achieve its goals given its value proposition (e.g., competitive pay and career growth opportunities). 11 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 12. Corporate SWOT Analysis TBRAccenture’s well-developed resources and capabilities allow the companyto gain business growth opportunities Strengths Opportunities • Seamless transition of executive power in CEO • Target growth opportunities in emerging succession (new CEO as of January 1, 2011) markets • Broad Global Delivery Network and developed • Increasing demand for analytics to support presence in low-cost locations Accenture’s growth • Leverage of a standard framework for building • Expansion of Global Delivery Network in Latin and delivering services America due to demand for services delivered • Alliance relationships with 150+ partners from the region • Strong vertical market focus and expertise • Stabilizing consulting/SI demand can help • Core competency to attract, hire, train, deploy Accenture’s consulting & SI business stabilize in and retain skilled talent the long run • Accenture’s Technology Labs turn technology • Growth potential of cloud computing can help into business results Accenture gain traction TBR SOFTWARE BUSINESS QUARTERLYSM Weaknesses Threats • Price competitiveness is limited in • Slow and uneven economic recovery in Europe commoditized/sole sourcing deals – unlike in may challenge Accenture’s near-term large/complex engagements performance in the region • Recruiting and training costs tied to hiring as • Indian vendors are becoming more active in well as wage and salary increases used as means business consulting and remote management to hold off rising attrition are having a ITO temporary negative impact on cost of services • Competition from other MNCs (e.g., IBM, HP/EDS, etc.) and European firms for top clients • Competition for lower-cost labor by other MNCs, as well as Indian and European vendors, may challenge hiring in India and the Philippines12 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 13. Corporate SWOT Analysis TBR Accenture’s new CEO will not change the company’s strategy and outlook TBR Strength Assessment: Seamless transition of executive power in CEO succession Pierre Nanterme, formerly head of Accenture’s Financial Services group, is Accenture’s new CEO as of January 1, 2011. TBR believes the CEO change is business as usual and Accenture has Accenture is taken necessary steps to ensure a smooth transition, keeping its future strategy intact. appointing CEOs • Accenture announced the change in its top leadership in October 2010. The goal was to with a long provide enough time for the new CEO to get up to speed before stepping into his new role. history with the • Former CEO Bill Green, who has served as Accenture’s CEO since 2004, will remain Chairman company (25+ of the Board and will act as an advisor to Nanterme and help guide strategic planning. years) and allowing former • TBR believes this executive enables Accenture to smoothly transition executive power to CEOs to retain Nanterme, who has been chief executive of the financial services group since 2007 and has been with the company for 27 years. the Chairman position to help • Nanterme brings knowledge and experience in financial services and leadership development guide the capabilities, which will contribute to Accenture’s strategy of strengthening its human capital company to and developing its global service delivery capabilities. TBR•SOFTWARE BUSINESSlaid out its SM While Accenture QUARTERLY FY11 growth and margin targets in September, prior to the CEO future business success change, the new CEO is fully committed to achieving the goals the company has set for its new fiscal year. Nanterme will find the set financial goals achievable given the signs of global economic improvement, and the strength of the Accenture operation he is inheriting. Accenture’s Last Three CEOs • Nanterme held the fort in the financial services • 1989 – Accenture established as Andersen Consulting. vertical during harsh economic times and workedSource: Accenture and TBR. toward the gradual improvement in the vertical’s • Nov. 1999 – Joe W. Forehand named CEO (26 years with the company at that time). performance as the global financial services • Sept. 1, 2004 – Bill Green became CEO (28 years with the industry stabilized. IP asset-based solutions that company at that time); Forehand retained the position of help service delivery automation and provide Chairman until Sept. 2006, when it was transferred to Green. benefits on the profitability side in financial • Jan. 1, 2011 – Pierre Nanterme became CEO (27 years with services can be expanded to other areas. Accenture); Green retained the position of Chairman. 13 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 14. Corporate SWOT Analysis TBRDevelopment of skills and talent is a key aspect of Accenture’s businessTBR Strength Assessment: Core competency to attract, hire, train, deploy and retain skilled talent People are Accenture’s key asset and the company has developed a competency, which is a key strength in TBR’s view, to attract, train and retain professionals with the necessary skills to serve its clients. Accenture is also extending its training skills to educate people around the world as part of its corporate citizenship, thus developing potential employees. Accenture is • Accenture is investing in technical, functional, industry, managerial and leadership skill investing in development and training. The company also has a performance management system and training and career philosophy that rewards individual performance and teamwork. employee • Such initiatives help Accenture establish a dedicated and educated workforce that isdevelopment to committed to the company’s values and business development strategies. ensure its • In addition, employee development helps Accenture curb attrition, which in 4Q10 reachedpeople have the 15%, up from 12% in 4Q09, but declined 200 basis points sequentially from 17% in 3Q10. right skills and • Accenture considers people its greatest asset and TBR believes this is the right attitude, as the are provided provision of consulting, SI and outsourcing (e.g., BPO) is largely a people-focused effort. with career growth TBR SOFTWARE BUSINESS QUARTERLYSM industry rankings as a preferred company to work for. The • Accenture is also recognized in Vault’s Tech Consulting Firm Rankings 2011: Best to Work For placed Accenture at No. 3 for opportunities Formal Training and No. 4 for Promotions, outpacing competitors like IBM and Capgemini. • In May 2009, Accenture launched its global “Skills-to-Succeed” corporate citizenship initiative, which allows people to be educated with skills to get a job or build a business. Accenture’s goal is to educate 250,000 people around the globe by 2015, and the company will contribute $100 million in the next three years in global and local giving to support the initiative. ACCENTURES TRAINING COSTS • Recruiting and training costs tied to hiring, inTBR addition to wage and salary increases used toFISCAL YEAR (IN $ THOUSANDS*) FY07 FY08 FY09 FY10 hold off rising attrition, are having a temporaryTraining costs $775,768 $985,929 $794,218 $591,229% of total revenue 3.9% 4.2% 3.7% 2.7% negative impact on cost of services (rose to 67.8%Training costs per employee $4,575 $5,278 $4,483 $2,900 of net revenue in 4Q10 from 66.9% in 4Q09). We* In $ thousands except for training costs per employee expect this trend to remain in the next severalSOURCE: ACCENTURE AND TBR. quarters as hiring continues.14 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 15. Financial Model Strategy TBR TBR projects continued top-line advancement during FY11 as strength across segments fuels an uptick in revenue growth Revenue Performance Revenue & Growth Drivers ACCENTURES NET REVENUE, GROWTH AND PROJECTIONS 4Q10 Net Revenue: $6.05 billion, 12.3% YTYTBR $30 20.0% • Net revenue reached $6.05 billion in 4Q10, improving Net Revenue Growth Year-to-year $26.1 $25 $24.0 10.0% 12.3% year-to-year and 11.5% sequentially. This was $22.2 $20 8.3% 12.3% 10.8% 8.0% 8.7% the third consecutive quarter in which Accenture saw 5.3% 6.1% -1.7% 0.0% year-to-year revenue growth after five quarters ofIn $ Billions $15 -10.6% -10.0% revenue declines in 2009 and 1Q10. $10 $5.4 $5.6 $5.4 $6.0 $5.7 • Improving demand across consulting & SI, areas $5.2 -20.0% $5 previously challenged, and stable demand in $0 -30.0% outsourcing are contributing to revenue growth. 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 CY10 CY11 CY12 Net Revenue Revenue Growth Yea r-to-yea r Es t. Es t. Es t. Revenue and Growth Outlook TBR SOFTWARE BUSINESS QUARTERLYSM NOTE: Annual revenue and projections are for calendar 2010, 2011 and 2012, respectively. • TBR forecasts Accenture’s revenue will be close to SOURCE: ACCENTURE AND TBR $5.73 billion in 1Q11, growing 10.8% year-to-year. TBR • TBR believes that after a bout of weakness in the firm’s ACCENTURES TRAILING 12-MONTH REVENUE $26 consulting & SI segment over the past few quarters, $23.7 $23.4 stronger indications of improvement in the business $24 $22.4 $21.6 $20.9 $20.8 $21.3 $21.6 $22.2 $22.8 line will help Accenture yield a fourth consecutive $22 quarter of TTM revenue growth, helping the company In $ Billions $20 grow to $22.8 billion in 1Q11 on a TTM basis from $18 FY09 FY10 $20.8 billion in 1Q10. $16 • Revenue generation in both Accenture’s consulting & SI $14 and outsourcing segments will continue to improve in 1Q08- 2Q08- 3Q08- 4Q08- 1Q09- 2Q09- 3Q09- 4Q09- 1Q10- 2Q10- 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 all geographic markets through 2011 as the company SOURCE: ACCENTURE FINANCIALS AND TBR Es t continues to broaden its client base and vertical expertise. 15 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 16. Financial Model Strategy TBR Improving demand, which drives higher training and subcontractor costs, is putting pressure on Accenture’s Cost of Sales Cost & Margin Performance Cost Structure & Margin Performance 4Q10 Operating Expenses: $1.12 billionTBR OPERATING EXPENSES AS A PERCENTAGE OF SALES 22.0% Accenture’s cost of services (COS) for 4Q10 totaled $4,101 million, up 14% from 4Q09. 17.0% Cost of 12.9% COS as a percentage of revenues increased 12.0% 11.6% 12.0% 12.8% 12.1% 12.0% Services, 90 basis points to 67.8% from 66.9% in 4Q09. Gross 7.0% 7.7% 8.0% 7.4% COS rose due to higher subcontractor and 8.0% 6.4% 7.4% Profit 2.0% 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% training costs tied to improved demand and -3.0% compensation increases. 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Es t. Sales and marketing grew to 12.1% of Reorga ni za tion cos t (benefi t) Genera l a nd Admi ni s tra tive revenues from 11.6% in 4Q09 due to Sa l es a nd Ma rketingSOURCE: ACCENTURE AND TBR investment in business development and TBR SOFTWARE BUSINESS QUARTERLYSM sales. G&A fell 130 basis points 6.4% of SG&ATBR ACCENTURES GROSS AND OPERATING PROFIT AND revenue to 7.7% in 4Q09 due to active PROJECTIONS management of cost structure (drove an 80- basis-point decline) and reduction in badGross and Operating Margin 40% debt reserve (drove a 50-basis-point decline). 33.1% 34.7% 34.0% 32.9% 33.4% 34.3% 35.0% 32.7% 32.2% 30% • Operating margin decreased 20 basis points year-to-year to 13.7% in 4Q10, dragged 20% 13.9% 12.6% 14.4% 13.2% 13.7% 13.5% 13.5% 13.7% 14.0% down by a decline in profitability in Health 10% Operating & Public Service and Resources. Margin • Accenture remains focused on keeping 0% and 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 CY10 CY11 CY12 Outlook operating margins in the 13.6% to 13.7% Gros s Ma rgi n Opera ting Ma rgi n Es t. Es t. Es t. range, which we believe will be anNOTE: Annual gross and operating profit and projections are for calendar 2009, 2010 and 2011. achievable goal given cost-managementSOURCE: TBR AND ACCENTURE and efficiency techniques. 16 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 17. Financial Model Strategy TBRConsulting & SI revenue is now growing with strength in management andIT consulting, while outsourcing services remain in demand Service Line Performance Service Line Drivers Service Line Financials TBR ACCENTURES SERVICE LINE REVENUE (IN $ MILLIONS) • Consulting & SI revenue increased 14.3% 100% year-to-year (as reported) in 4Q10, % of Net Revenue 75% $2,262 $2,244 $2,346 $2,326 $2,478 $2,467 growing in all verticals except for Health & Public Service due to declines in public 50% services in EMEA and Americas. 25% $3,120 $2,932 $3,225 $3,094 $3,568 $3,270 • In management consulting, clients are hiring to achieve operational excellence 0% Consulting along with growth. In technology 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. & SI consulting, clients are looking to drive Outsourcing Consulting & Systems Integration down IT costs through virtualization and SOURCE: TBR AND ACCENTURE cloud computing, rationalize legacy TBR SOFTWARE BUSINESS QUARTERLYSM operations and improve security. The SITBR ACCENTURES SERVICE LINE REVENUE AND business is showing increasing strength. PROFITABILITY We expect Accenture will continue to 75% 58.0% 56.6% 57.9% 57.1% 59.0% 57.0% proactively and successfully manage the% of Net Revenue 60% 42.0% 43.4% 42.1% 42.9% shift of SI work to lower-cost locations. 45% 41.0% 43.0% 30% • Outsourcing revenue rose 9.5% year-to- 15.0% 14.5% 15.0% 14.8% 14.8% 15.1% year (as reported) to $2.48 billion from 15% 12.6% 13.6% 11.8% 11.4% $2.26 billion in 4Q09. 0% 9.7% 11.4% • Outsourcing revenues reflected demand 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Es t. Outsourcing Cons ul ting & SI Revenue Outs ourci ng Revenue from clients around cost-effective BPO Cons ul ting & SI Opera ting Ma rgi n* Outs ourci ng Opera ting Ma rgi n* solutions centered around finance andSOURCE: TBR AND ACCENTURE * Operating margin is a TBR estimate accounting and procurement, as well as demand for industry-specific processes. 17 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 18. Financial Model Strategy TBRThe financial services vertical will see further growth, while the publicsector will see temporary challenges due to restricted spending in Europe Operating Group Performance Operating Group DriversTBR ACCENTURES REVENUE BY OPERATING GROUP Operating Group Financials (IN $ BILLIONS) Communications & High-Tech increased 10.8% 100% year-to-year. Consulting grew due to demand for % of Net Revenue $0.95 $0.85 $0.93 $0.86 $0.93 $0.85 75% $0.96 $0.93 $1.00 $1.01 $1.13 $1.08 strategic sourcing, globalization, cost take-out, CHT 50% $1.10 $1.08 $1.15 $1.12 $1.30 $1.24 and customer acquisition and retention; $1.16 $1.11 $1.18 $1.16 $1.28 $1.22 outsourcing grew with focus on cost take-out and 25% $1.20 $1.21 $1.31 $1.27 $1.40 $1.34 operational efficiency. 0% 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. FS grew 17.9% year-to-year in 4Q10 with record Other Health & Public Service* Financial growth in Consulting; clients looked for services in Resources Financial Services Services post-merger integration, banking and insurance Communications & High-Tech Products*SOURCE: TBR AND ACCENTURE (FS) replatforming, risk and regulatory compliance and TBR SOFTWARE BUSINESS QUARTERLYSM transformation.TBR ACCENTURES OPERATING GROUP PROFITABLITY HPS declined 1.6% year-to-year due to uncertainty 19.0% Health & and challenges in the public sector, largely in% of Net Revenue 17.0% 15.0% Public Europe, which we expect to continue during the 13.0% Service rest of FY11. Accenture saw growth in Consulting 11.0% 9.0% (HPS) in Health in the Americas due to strong 7.0% investment in healthcare improvement. 5.0% 3.0% Products revenue increased 15.9% year-to-year, 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Es t. Products driven by strong growth in both consulting and Communi ca tions & Hi gh-Tech Hea l th & Publ i c Servi ce* Fi na nci a l Servi ces Products * outsourcing across all geographies. Res ourcesSOURCE: TBR AND ACCENTURE Resources rose 17.0% year-to-year due to double-*On Sept. 1, 2009, Accenture formed the Health & Public Service operating group by Resourcescombining various healthcare-related components of its Products operating group with its digit growth in Consulting and Outsourcing.Public Service operating group. Prior-period amounts have been reclassified. 18 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 19. Go-to-Market & Product Strategies TBRInvestments in industry-specific offerings with new technology contentallow Accenture to broaden its client base and geographic coverage4Q10 New Service Announcements: Service Line Strategies • Accenture launched a new large scale Accenture has three growth platforms which emphasize providing biometric identity matching solution high performance to clients. Subject matter experts within the growth called Accenture’s Large Scale platforms work together with Accenture’s operating groups (verticals) Matching Solution. It helps public to develop and deliver solutions. service agencies accurately validate the identity of individuals, whether for • Management consulting growth platform – Grow management identifying potential national security consulting services by placing strong emphasis on operational threats or for refining the delivery of excellence with a cost-containment value proposition to increase government assistance programs and bookings. social services to citizens. The solution • Technology growth platform – Further extend leadership in allows timely and accurate systems integration and technology services. identification while decreasing the • BPO growth platform – Speed up BPO growth with an integrated expenses of identity assurance. BPO organization that delivers industry-specific and cross-industry TBR SOFTWARE BUSINESS QUARTERLYSM services with a transformational value scheme (i.e., combining BPO management consulting with BPO capabilities). 4Q10 Services Stack IO: Accenture’s ability to manage work remotely is generating strong demand for IO, 8 infrastructure outsourcing as clients become increasingly attuned to transferring Consulting &SI % assets due to lighter capital costs (cost optimization is key priority). 57.1% BPO: High demand for cost-efficient solutions in finance and accounting, and BPO, 41% procurement and industry-specific processes was reflected by a solid booking trend produced by Accenture in 4Q10, specifically in Europe and North America. Outsourcing 42.9% AO: Demand for AO is generated by the strong value proposition offered to AO, 51% clients. AO is often bundled with other outsourcing services. Clients are moving up the value chain into optimized application portfolios and business SOURCE: TBR ESTIMATES. performance, creating opportunities for Accenture.19 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 20. Go-to-Market & Product Strategies TBRAccenture’s core, as well as its innovative offerings, will drive bookingsgrowth TBR ACCENTURES TTM NEW BOOKINGS AND Y/Y GROWTHSignings & Pipeline $30,000 25% Year-to-year Growth TTM Bookings $25,000• Accenture’s total bookings rose 14.1% year-to-year to 15% $20,000 $6.31 billion and grew 9.0% year-to-year to $25.8 billion (In $ Millions) 5% $15,000 on a TTM basis due to improving demand, positioning $10,000 -5% the company for top-line growth during the rest of FY11. $5,000 -15%• Consulting bookings, which were hit hard in the 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 challenging economy, continue to grow, up 6.0% year- TTM Cons ul ti ng TTM Outs ourci ng Es t. Yea r-to-Yea r Growth to-year in 4Q10. Management Consulting bookings were strong in Europe and in APAC. Accenture will see SOURCE: TBR AND ACCENTURE more wins in risk management and new market entry. Technology Consulting bookings were strong, and Key 4Q10 Customer Wins clients’ interest in innovation and flexibility is growing. SI bookings reached its highest level in nine quarters, • Hilton Worldwide (U.S.) – Multiyear; application rebounding well following the market turmoil. development and support services TBR SOFTWARE BUSINESS QUARTERLYSM • National Water Company (Saudi Arabia) – Design• Outsourcing bookings increased 28.2% year-to-year but and deploy IT solution for water and waste declined 13.7% sequentially. Accenture benefited from management new client wins, as well as the extension of projects • Proton Holdings (Malaysia) – 21 months; ERP with existing clients. system• There may be some inconsistency in bookings growth • Centers for Disease Control and Prevention (U.S.) between quarters (i.e., Outsourcing booking did not – $3 billion ceiling, 10 years; ID/IQ contract for follow a smooth pattern); however, Accenture will see information management and IT infrastructure positive bookings performance in the near term. The services firm’s improved offerings portfolio (refreshed core • U.S. Navy – $6.3 million, five years; engineering offerings coupled with new areas such as analytics, services (hardware and software maintenance) mobility, etc.) and its mix of cost improvement and • RSA (U.K.) – Three-year contract extension; growth enhancement offerings will continue to attract provide development, implementation, clients. maintenance services20 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 21. Go-to-Market & Services Strategies TBRAccenture’s investment in sales effectiveness and business developmentstrategies will continue to boost signings and revenue in the long runTBR Assessment of Sales Strategy: Accenture’s strengthened sales initiatives will boost revenue growth Accenture’s global sales organization is comprised of a traditional sales channel supported by a small direct sales channel • Traditional sales channel – This channel is responsible for the bulk of Accenture’s sales. The sales function is tasked to Accenture’s partners, associate partners and managers (or senior executives) – 4,500 people globally. Each client has account executives Accenture’s responsible for the relationship, business development, etc. investment in sales • Direct sales channel – This small, direct sales force covers new clients with whom initiatives and Accenture does not yet work, and is comprised of: business • Equally small and direct sales team in BPO that targets SMBs. development • Direct sales team in applications outsourcing (~80 sales directors globally) and ITO activities for both that works with client partner senior executives. its core business SOFTWARE BUSINESS QUARTERLYSM advisors work with clients to score deals for Accenture and TBR • Third-party advisors. These and new service constitute only a minor portion of the company’s sales force. areas (e.g., cloud, analytics, smart Customer structure – Accenture’s “diamond” clients showcase the company’s focus on grid, etc.) are relationship building generating results • Accenture defines its “diamond,” or “foundation” clients as those having $100+ million, and will bring long-term, established accounts that have a strong relationship with the company. The further success in number of Accenture diamond clients across the globe reached 100 at the end of FY10. the long run • Approximately 20 of Accenture’s diamond clients are located in the United Kingdom, a key region for Accenture’s business. Accenture also has diamond clients in emerging markets (e.g., one diamond client in China, four in Brazil), showcasing its ability to expand geographically and diversify its revenue. • Accenture focuses on building strong relationships with diamond/foundation clients, and the company generates a large share of its business from these clients.21 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 22. Go-to-Market & Services Strategies TBRPricing is stabilizing across markets; however, pricing increases are notexpected to be significant in the near-term • Accenture’s pricing environment remains competitive. • TBR believes the close of 2010 brought about a TBR sees this continuing into the foreseeable future as stabilization of pricing capabilities for vendors heightened competition from Indian vendors and across geographies. TBR forecasts that during 2011, stronger market conditions lead to aggressive pricing the U.S. will experience moderate pricing increases. tactics from competitors. TBR expects Accenture to Pockets of pricing power in EMEA will emerge (e.g., experience moderate pricing traction through 2011, in countries that are experiencing more rapid albeit at an uneven pace among its primary markets. economic recovery such as Germany), but the ACCENTURES U.S. GOVERNMENT HOURLY RATES broader region will stay in a flat-line state, forcingTBR (05/10-05/11) Accenture to keep its finger on the market’s pulse SKILL LEVEL/EXPERIENCE for smaller pockets of pricing traction. APACTITLE 1 2 3 4Business Integration Analyst $91 $100 $114 $123 markets will fare similarly to the U.S. for 2011, withBusiness Integration Consultant $111 $125 $139 $153 opportunities to gain pricing traction becomingBusiness Integration Manager $157 $177 $183 $202 more evident throughout the year.Business Integration Senior Manager TBR SOFTWARE BUSINESS QUARTERLYSM $236 $274 $303Business Integration Associate Partner $316 $347 $378 $417 • In Systems Integration, Accenture continues toBusiness Integration Partner $494 N/A N/A N/A transition its work into a greater offshore mixClient Financial Management Assistant $64 N/A N/A N/A through its global delivery network. TBR believesClient Financial Management Analyst $81 $91 N/A N/A the tradeoff between stronger margins and pricingClient Financial Management Specialist $110 $121 N/A N/A pressure will be a key challenge in this segment.Client Financial Management Manager $157 N/A N/A N/AClient Financial Management Senior Manager $231 N/A N/A N/A • However, TBR believes competitive wageClient Financial Management Associate Partner $340 N/A N/A environments in Accenture’s primary sourcingExecutive Assistant $64 $73 $83 N/ANOTE: Net rates (discount deducted). regions (e.g., India) will allow for the pass-throughSOURCE: TBR AND GENERAL SERVICES ADMINISTRATION. of some cost increases as market demand flourishes for globally integrated service deliveryThe hourly billing rates above are based on Accenture’s General Purpose commands.Commercial IT Equipment, Software and Services government contractwith the U.S. General Services Administration, launched in 2010. 22 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 23. Alliance & Acquisition Strategies TBRAlliances are a strong contributor to Accenture’s competitiveness anddiverse set of service offeringsTBR Assessment of Alliance Strategy: Alliances are a key element of Accenture’s strategy • Accenture’s internal organization, the Accenture Alliances Group, is responsible for forming alliances and partnerships to provide the company with new channels, incremental revenue streams and access to emerging technologies. Accenture Alliances has grown significantly during the last four to five years, from a group of 15 people managing 12 alliances to a global organization of more than 300 professionals. TBR expects • Alliances and partners are centered around the company’s client service business (technology, Accenture will outsourcing, strategy, etc.). The company has an alliance network of more than 150 partners.further expand Major partners include Avanade, Microsoft, IBM, Dell, Oracle, SAP, Symantec, Cisco Systems, HP,its partnership EMC and Alcatel-Lucent. base of Accenture’s alliance announcements during 4Q10 technology • Accenture and Universal Music Group (UMG) formed an alliance in 4Q10 following a successful developers to two-year collaboration to develop and deploy Accenture’s Digital Supply Chain Platform. TBR SOFTWARE BUSINESS QUARTERLYSM broaden its • Accenture and NHN Corporation signed an agreement to work together to develop mobile offerings with applications for smartphones. high-growth • Accenture and BMC Software expanded their relationship in 4Q10; they will work together to potential and develop and implement BMC Business Service Management, as well as consulting andvertical-specific integrating services to BMC’s Professional Services organization. solutions TBR Assessment • Alliances will continue to be vital, allowing Accenture to provide services and solutions in high- growth areas. TBR believes Accenture will continue this trend as a means to gain global traction for its services. NOTE: SEE APPENDIX OF THIS REPORT FOR A FULL LISTING AND ANALYSIS OF ACCENTURE’S ALLIANCES. 23 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 24. Alliance & Acquisition Strategies TBRSuccessful acquisition integration supports Accenture’s organic revenuegrowthTBR Assessment of Acquisition Strategy: Leverage tuck-in acquisitions to drive inorganic growth Accenture’s acquisition strategy during the past several years has been to make relatively Accenture will small-scale, tuck-in acquisitions to fill gaps in its offerings and expand its capabilities and global reach.remain steadfast in • Accenture’s main goal is to grow its business organically; however, the company supplementssupporting organic organic growth with acquisitions when it finds the right transaction in terms of price and growth via small- capabilities that will be added. scale strategic • Accenture’s M&A focus is to acquire companies without disrupting its overall business direction acquisitions and performance, while at the same time augmenting its existing resources and capabilities. through FY11 • TBR believes Accenture will be looking to make more small-scale acquisitions, given its ability to fund such transactions as well as its history and expertise in integrating companies. TBR SOFTWARE BUSINESS QUARTERLYSM Activity in 4Q10 (Fiscal 1Q11) Accenture’s Acquisition Acquisition Estimated No. Company Acquisition Synergies Date of Employees CAS Computer CRM and mobility software for the consumer November Anwendungs-und products industry. Augments Accenture’s industry- 230 2010 SOURCE: ACCENTURE AND TBR Systemberatung AG specific software offerings. November Strengthens Accenture’s embedded software services Mogensis N/A 2010 capabilities. November Enhances Accenture’s Pegasystems capabilities in key Knowledge Rules, Inc. U.S. and European markets. N/A 2010 Purchased for $51 million, strengthening Accenture’s Ariba’s Sourcing November existing sourcing and procurement consulting and 160 Services & BPO Assets 2010 outsourcing capabilities24 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 25. Geographic Analysis TBRAside from pockets of uncertainty in some verticals and geographies,Accenture will see more growth in the majority of its business Revenue, YTY Growth Geo Key Changes & Drivers and Contribution Keep on the Radar Americas A shifting trend toward more Revenue in the Americas increased 18.1% $2.63B, up strategic consulting offerings year-to-year, attributed to significant 18.1% rather than tactical solutions in YTY; U.S./ growth within the United States, Brazil, 43.6% of Accenture’s management Americas and Canada. In the U.S., Accenture’s revenue consulting segment may ignite public service vertical saw growth in further backlog of higher-value Outsourcing with the U.S. federal sector. solutions from an invigorated U.S. economy. EMEA Economic issues and tight public EMEA’s revenue grew 3.4% year-to-year, $2.64B, do spending remain, but Accenture driven mainly by growth in France as well wn 3.4% YTY; is optimistic about its business. as Italy, the U.K, Germany, Sweden, SM EMEA Some local economies are Finland SOFTWARE BUSINESS QUARTERLY TBR and Switzerland, but partially 43.6% of revenue growing and clients (e.g., large offset by declines in the Netherlands and global European companies) are Ireland. investing in IT projects. Although APAC is Accenture’s smallest APAC Accenture continues to improve revenue contributor, it has sustained $775M, up its competitive position in APAC. 28.4% positive year-to-year growth momentum, YTY; Accenture experienced strong APAC up 28.4% in 4Q10, driven by significant 12.8% of revenue growth in APAC and has growth in Japan and growth in Australia, revenue been working with clients on Singapore, India and South Korea. global expansion.Emerging & Accenture is focused on expanding key emerging markets (BRIC, South Korea and Mexico) and in otherDeveloped fast-growing markets. In addition, Accenture is looking to gain traction in several developed but Markets underpenetrated markets to diversify its revenue base.25 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 26. Resource Management Strategy TBRAccenture will continue to invest in the expansion of its global deliverycapabilities, achieving top- and bottom-line benefitsStrategy & Investments ACCENTURES HEADCOUNT TBR• Slightly alleviate utilization through hiring (utilization Tota l hea dcount: 210951 (+19.8% YTY) dropped to 87% in 4Q10 from 88% in 4Q09) and ability to 200,000 quickly train and deploy people to work on projects. SOURCE: TBR AND ACCENTURE. 92,500 Total Headcount• Continue hiring in FY11, similar to the hiring levels in FY10; 150,000 Nea rs hore & 74,700 Offs hore Hea dcount the goal is to hire at least 64,000 people across its GDN. 100,000 Other GDN l oca tions• Promoting its “Skills-to-Succeed Program,” a corporate a nd ons hore citizenship initiative which provides people around the 101,363 118,451 50,000 globe with business-oriented skills. Accenture will educate 250,000 people by 2015 and is investing $100 million. 0 4Q09 4Q10• Opening an R&D and innovation center in Dublin; the center is aimed at creating predictive analytics solutions for Ca l enda r Qua rter customers worldwide and will add 100 jobs in the next four TBR SOFTWARE BUSINESS QUARTERLYSM • Accenture’s total headcount grew 19.8% year- years. to-year to 210,951 in 4Q10 (beginning of FY11)• Expanding its operations in the Philippines with three new and 3.8% sequentially, driven by increased facilities in Manila and in Cebu; the plan is to employ 25,000 hiring activities as the company focused on people by end of FY11, up from the current total of 20,000. capturing demand. In 4Q10, Consulting and Solutions headcount (i.e., pure Consulting, SI TBR Accentures Efficiency Metrics (In $) and Technology employees) rose 27.2% year-to- 4Q09 4Q10 year to 130,983, and GDN headcount increased Revenue per Employee $ 117,704 $ 112,948 ↓ 26.6% year-to-year to 120,000. Operating Income per Employee $ 14,477 $ 15,230 ↑ • Strong focus on training allowed Accenture to Utilization 88.0% 87.0% ↓ quickly deploy new employees, generating Turnover 12.0% 15.0% ↑ benefits from its new hires and operating at relatively high utilization levels (87.0% in 4Q10).26 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 27. Resource Management Strategy TBRA new CEO is taking the helm in 2011, but keeping management structurein place; former CEO remains Chairman of the BoardOrganizational Changes Pierre Nanterme Chief Executive OfficerAccenture is making changes to its top TBRleadership team, with a new CEO to lead Johan (Jo) Deblaere Pamela J. Craigthe company. The CEO change is business as Chief Operating Officer Chief Financial Officerusual and will not change Accenture’s GROWTH PLATFORMS OPERATING GROUPS GEOGRAPHIES AND GLOBAL DELIVERY CORPORATE FUNCTIONSstrategic direction and financial goals. David C. Thomlinson Roxanne Taylor • Accenture appointed Pierre Nanterme as Kevin M. Campbell Martin I. Cole Group Chief Executive Sr. Managing Director Chief Marketing & Group Chief Executive Geographic Strategy & Communications Officer its Chief Executive Officer. Previously, Technology Communications Operations Adrian Lajtha Nanterme was Group Chief Executive for Sander van’t Noordende Chief Leadership Officer Mark Foster Harsh Manglik Financials Services. Former CEO William Group Chief Executive Group Chief Executive Resources India Chairman Julie Spellman Sweet (Bill) D. Green will continue serving as QUARTERLYSM Consulting & TBR SOFTWARE BUSINESS Management & Managing Director General Counsel, Secretary & Chief Compliance Officer Global Markets Gianfransco Casati Chairman of the Board. Group Chief Executive Robert N. Frerichs . Group Chief Executive Jill B. Smart Products • Richard Lumb, who previously acted as Michael J. Salvino North America Chief Human Resources Officer the senior managing director of Group Chief Executive BPO Richard Lumb Group Chief Executive Thomas Pike Accenture’s financial services operating Financial Services Chief Risk Officer unit in Europe, Africa and Latin America, Stephen J. Rohleder Karl - Heinz Floether Chief Strategy & Corporate will replace Nanterme and serve as Group Chief Executive Development Officer Health & Public Service Group Chief Executive for Financial KC McClure Services. Investor Relations Managing Director Donald J. Rippert Chief Technology Officer & Managing SOURCE: ACCENTURE AND TBR Director of Technology 27 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 28. Future Outlook Future Outlook TBRAccenture will continue to address demand and expand its resources andcapabilities to realize further business growthTBR Outlook • With the recovery in the IT services TBR 4Q10 PSBQ VENDOR POSITION AND PROJECTION: market, we expect Accenture’s top- ACCENTURE line growth to improve through FY11. 10.00 PSBQ Tra i l i ng 12-Month Though the economic picture remains TBR Overall Score 8.00 Avera ge Growth = 9.6% 4Q10 mixed as countries are emerging from 6.00 1 Financial the downturn at different rates, more 4.00 3Q10 1Q11 Es t. 2.00 clients are ready to invest in projects. 0.00 Accenture’s ability to adjust its 4% 6% 8% 10% 12% portfolio to demand positions it for Qua rterl y Revenue Growth Yea r-to-yea r long-term gains. SOURCE: ACCENTURE AND TBR ESTIMATES • TBR expects Accenture to reach its FY11 operating margin targets (13.6% to 13.7%) as the company continues its cost and operational improvement and increased offshoring measures. TBR SOFTWARE BUSINESS QUARTERLYSM • During FY11, TBR expects Accenture to gain traction across the majority of its verticals due to its vertical-specific expertise and offerings. The healthcare sector is showing strong demand and Accenture is actively investing to help improve healthcare around the globe. The Financial Services vertical is also seeing increased demand, especially in consulting, and Accenture will 1 Go-to-Market continue to see growth. Uncertainty with regard to financing in the public sector in the U.S., U.K. and several other countries in Europe is impacting demand and will pose challenges. • Accenture’s investment in sales and go-to-market (strengthened core business with new offerings, invested in new business initiatives with high-growth potential such as analytics, cloud computing, etc.) will help the company take advantage of opportunities that arise. • Accenture will continue hiring through FY11, at a level similar to the 64,000 hired during FY10, Resource and will manage utilization and attrition. Management • Accenture will continue to focus on increasing its offshore leverage and will further develop its Global Delivery Network.28 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 29. Income Statement Appendix – Income Statement TBRACCENTUREConsolidated Statement of Income(in $ Thousands Except Share Data) AS A PERCENTAGE OF REVENUE YEAR-TO-YEAR CHANGECalendar Period Nov. 09 Feb. 10 May 10 Aug. 10 Nov. 10 Feb. 11 Nov. 09 Feb. 10 May 10 Aug. 10 Nov. 10 Feb. 11 Nov. 09 Feb. 10 May 10 Aug. 10 Nov. 10 Feb. 11CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est.FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est.Revenues $ 5,747,687 $ 5,537,823 $ 5,975,495 $ 5,833,073 $ 6,478,193 $ 6,146,984 106.8% 107.0% 107.3% 107.6% 107.2% 107.2% -11.2% -2.1% 7.9% 6.0% 12.7% 11.0%Reimbursements 365,155 361,385 404,478 412,492 432,543 410,611 6.8% 7.0% 7.3% 7.6% 7.2% 7.2% -19.1% -7.6% 3.1% 14.7% 18.5% 13.6%Net Sales (Revenues before Reimbursements) $ 5,382,532 $ 5,176,438 $ 5,571,017 $ 5,420,581 $ 6,045,650 $ 5,736,372 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% -10.6% -1.7% 8.3% 5.3% 12.3% 10.8%Cost of Services 3,598,578 3,486,107 3,639,367 3,575,769 4,101,170 3,849,106 66.9% 67.3% 65.3% 66.0% 67.8% 67.1% -12.9% -4.3% 4.7% 2.6% 14.0% 10.4%Gross Profit 1,783,954 1,690,331 1,931,650 1,844,812 1,944,480 1,887,266 33.1% 32.7% 34.7% 34.0% 32.2% 32.9% -5.5% 4.2% 15.6% 11.1% 9.0% 11.7% Sales and Marketing 621,860 623,386 714,487 698,325 731,471 688,365 11.6% 12.0% 12.8% 12.9% 12.1% 12.0% 10.4% 20.1% 36.1% 26.5% 17.6% 10.4% General and Administrative 412,121 413,335 410,057 432,793 385,726 422,961 7.7% 8.0% 7.4% 8.0% 6.4% 7.4% -18.7% -5.8% -0.1% 0.0% -6.4% 2.3% Selling, General and Administrative Expenses 1,033,981 1,036,721 1,124,544 1,131,118 1,117,197 1,111,326 19.2% 20.0% 20.2% 20.9% 18.5% 19.4% -3.4% 8.2% 20.2% 14.9% 8.0% 7.2% Reorganization cost (benefit) 3,565 2,637 3,276 60 348 100 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% 14.8% 120.3% 3.1% -98.3% -90.2% -96.2%Operating Expenses 1,037,546 1,039,358 1,127,820 1,131,178 1,117,545 1,111,426 19.3% 20.1% 20.2% 20.9% 18.5% 19.4% -3.3% 10.0% 20.2% -8.8% 7.7% 6.9%Operating Income 746,408 650,973 803,830 713,634 826,935 775,841 13.9% 12.6% 14.4% 13.2% 13.7% 13.5% -8.4% -3.9% 9.8% 70.1% 10.8% 19.2%Interest Income and Other, Net 8,697 (11,583) (550) 2,960 17,693 3,157 0.2% -0.2% 0.0% 0.1% 0.3% 0.1% 239.1% -153.9% -103.5% 2.2% 103.4% 127.3%Income before Taxes 755,105 639,390 803,280 716,594 844,628 778,998 14.0% 12.4% 14.4% 13.2% 14.0% 13.6% -6.6% -8.5% 7.4% 69.6% 11.9% 21.8%Provisions for Taxes 230,307 177,511 239,761 206,331 239,072 226,846 4.3% 3.4% 4.3% 3.8% 4.0% 4.0% 7.0% -9.7% 13.5% 77.1% 3.8% 27.8%Net Income before Minority Interest 524,798 461,879 563,519 510,263 605,556 552,152 9.8% 8.9% 10.1% 9.4% 10.0% 9.6% -11.5% -8.1% 5.0% 66.8% 15.4% 19.5%Minority Interest TBR SOFTWARE BUSINESS QUARTERLYSM (79,981) (62,119) (72,922) (64,781) (70,842) (72,987) -1.5% -1.2% -1.3% -1.2% -1.2% -1.3% 29.4% 31.7% 21.2% -26.3% 11.4% -17.5%Net Income $ 444,817 $ 399,760 $ 490,597 $ 445,482 $ 534,714 $ 479,165 8.3% 7.7% 8.8% 8.2% 8.8% 8.4% -7.3% -2.8% 10.5% 74.9% 20.2% 19.9%Net Earnings per Share of Common Stock $ 0.67 $ 0.60 $ 0.73 $ 0.66 $ 0.81 n/aCommon Shares Outstanding 773,696,423 768,453,497 766,597,090 758,133,742 742,961,409 n/aSOURCE: ACCENTURE 29 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 30. Balance Sheet Appendix – Balance Sheet TBR ACCENTURE Consolidated Balance Sheets (in $ Thousands) TBR CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 ASSETS Current Assets Cash and Equivalents 4,000,063 4,114,751 4,312,111 4,838,292 4,160,452 Short-Term Investments 5,056 7,323 8,094 2,987 3,164 Accounts Receivable 2,503,615 2,470,983 2,350,493 2,534,598 2,846,561 Unbilled Services 1,291,199 1,118,919 1,165,857 1,127,827 1,354,854 Other (Deferred Income Taxes, etc.) 1,129,378 1,062,476 1,006,835 1,059,921 1,104,679 Total Current Assets 8,929,311 8,774,452 8,843,390 9,563,625 9,469,710 Property, Plant, Equip. (Net of Dep.) 685,052 646,727 625,534 659,569 673,697 Other Non-Current Assets 2,570,456 2,468,909 2,448,734 2,612,059 2,725,467 Total Assets $ 12,184,819 $ 11,890,088 $ 11,917,658 $ 12,835,253 $ 12,868,874 LIABILITIES AND EQUITY Current Liabilities Short-Term Borrowings $ 1,734 $ 206 $ 573 $ 143 $ 332 Accounts Payable 689,769 683,632 683,094 885,328 824,354 Employee Compensation and Benefits 2,425,854 2,137,896 2,409,544 2,683,492 2,691,323 Deferred Revenues 1,747,083 SM 1,796,394 1,688,069 1,772,833 1,769,439 TBR SOFTWARE BUSINESS QUARTERLY Other Current Liabilities 1,312,729 1,191,091 1,047,774 1,225,808 1,161,403 Total Current Liabilities $ 6,177,169 $ 5,809,219 $ 5,829,054 $ 6,567,604 $ 6,446,851 LT Debt, Net of Current 855 199 198 1,445 - Other Non-current Liabilities 2,692,918 2,639,767 2,627,006 2,991,481 3,110,913 Minority Interest - - - - - Total Liabilities $ 8,870,942 $ 8,449,185 $ 8,456,258 $ 9,560,530 $ 9,557,764 Total Stockholders Equity $ 3,313,877 $ 3,440,903 $ 3,461,400 $ 3,274,723 $ 3,311,110 Total Liabilities & Equity $ 12,184,819 $ 11,890,088 $ 11,917,658 $ 12,835,253 $ 12,868,874 FINANCIAL RATIOS Days Sales Outstanding 41.86 42.96 37.97 42.08 42.38 Fixed Asset Turnover 31.06 31.09 35.03 33.74 36.28 Days Cash Outstanding 66.97 71.67 69.79 80.38 61.98 Total Asset Turnover 1.76 1.72 1.87 1.75 1.88 Debt/Asset Ratio 0.73 0.71 0.71 0.74 0.74 Current Ratio 1.45 1.51 1.52 1.46 1.47 Return on Assets 13.5% 13.1% 13.2% 14.6% 15.2% Return on Equity 55.1% 49.9% 48.0% 52.8% 55.7% SOURCE: ACCENTURE30 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 31. Appendix- Financial Models TBR ACCENTURES SERVICE LINE REVENUE AND ESTIMATED PROFITABILITY TBR CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. NET REVENUE (IN $ MILLIONS) Consulting & Systems Integration $ 3,120 $ 2,932 $ 3,225 $ 3,094 $ 3,568 $ 3,270 Outsourcing $ 2,262 $ 2,244 $ 2,346 $ 2,326 $ 2,478 $ 2,467 Total Net Revenue $ 5,383 $ 5,176 $ 5,571 $ 5,421 $ 6,046 $ 5,736 AS A PERCENTAGE OF REVENUE Consulting & Systems Integration 58.0% 56.6% 57.9% 57.1% 59.0% 57.0% Outsourcing 42.0% 43.4% 42.1% 42.9% 41.0% 43.0% YEAR-TO-YEAR CHANGE (IN U.S. DOLLARS) Consulting & Systems Integration -14.7% -3.2% 9.1% 6.2% 14.3% 11.5% Outsourcing -4.2% 0.4% 7.1% 4.2% 9.5% 9.9% Total Net Revenue -10.6% -1.7% 8.3% 5.3% 12.3% 10.8% SEQUENTIAL CHANGE Consulting SOFTWARE BUSINESS TBR & Systems Integration QUARTERLYSM 7.1% -6.0% 10.0% -4.0% 15.3% -8.4% Outsourcing 1.3% -0.8% 4.6% -0.9% 6.5% -0.4% Total Net Revenue 4.6% -3.8% 7.6% -2.7% 11.5% -5.1% OPERATING INCOME (IN $ MILLIONS) Consulting & Systems Integration $ 460 $ 432 $ 484 $ 449 $ 535 $ 494 Outsourcing $ 286 $ 218 $ 320 $ 265 $ 292 $ 282 Total Operating Income $ 746 $ 651 $ 804 $ 714 $ 827 $ 776 ESTIMATED OPERATING MARGIN Consulting & Systems Integration 14.8% 14.8% 15.0% 14.5% 15.0% 15.1% Outsourcing 12.6% 9.7% 13.6% 11.4% 11.8% 11.4% Total Operating Margin 13.9% 12.6% 14.4% 13.2% 13.7% 13.5% SOURCE: TBR ESTIMATES AND ACCENTURE31 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 32. Appendix- Financial Models TBR ACCENTURES OPERATING UNITS REVENUE AND INCOME TBR CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. NET REVENUE (IN $ THOUSANDS) Communications & High-Tech $ 1,159,313 $ 1,110,147 $ 1,178,355 $ 1,164,475 $ 1,284,476 $ 1,218,979 Financial Services $ 1,104,037 $ 1,076,879 $ 1,149,863 $ 1,115,259 $ 1,301,118 $ 1,241,925 Health & Public Service* $ 946,512 $ 851,563 $ 926,618 $ 856,109 $ 931,600 $ 848,983 Products* $ 1,204,060 $ 1,205,575 $ 1,307,903 $ 1,267,809 $ 1,396,041 $ 1,339,109 Resources $ 964,163 $ 929,309 $ 1,004,056 $ 1,013,513 $ 1,128,317 $ 1,084,174 Other $ 4,447 $ 2,965 $ 4,222 $ 3,416 $ 4,098 $ 3,202 Total $ 5,382,532 $ 5,176,438 $ 5,571,017 $ 5,420,581 $ 6,045,650 $ 5,736,372 AS A PERCENTAGE OF REVENUE Communications & High-Tech 21.5% 21.4% 21.2% 21.5% 21.2% 21.3% Financial Services 20.5% 20.8% 20.6% 20.6% 21.5% 21.7% Health & Public Service* 17.6% 16.5% 16.6% 15.8% 15.4% 14.8% Products* 22.4% 23.3% 23.5% 23.4% 23.1% 23.3% Resources 17.9% 18.0% 18.0% 18.7% 18.7% 18.9% Other 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% YEAR-TO-YEAR CHANGE Communications & High-Tech -15.0% -7.0% 2.0% 4.2% 10.8% 9.8% Financial Services -10.8% 3.5% 12.0% 9.6% 17.9% 15.3% Health & Public Service* 0.3% -2.8% 2.8% -9.0% -1.6% -0.3% Products* -13.1% 0.8% 13.7% 13.0% 15.9% 11.1% Resources -10.7% -2.5% 11.0% 7.5% 17.0% 16.7% Other -55.9% -57.8% -25.0% -44.0% -7.8% 8.0% SEQUENTIAL CHANGE TBR SOFTWARE BUSINESS QUARTERLYSM 6.1% Communications & High-Tech 3.7% -4.2% -1.2% 10.3% -5.1% Financial Services 8.5% -2.5% 6.8% -3.0% 16.7% -4.5% Health & Public Service* 0.6% -10.0% 8.8% -7.6% 8.8% -8.9% Products* 7.4% 0.1% 8.5% -3.1% 10.1% -4.1% Resources 2.3% -3.6% 8.0% 0.9% 11.3% -3.9% Other -27.1% -33.3% 42.4% -19.1% 20.0% -21.9% OPERATING MARGIN Communications & High-Tech 12.5% 12.8% 14.3% 13.8% 15.0% 14.0% Financial Services 17.7% 17.2% 17.5% 17.2% 18.8% 18.2% Health & Public Service* 14.3% 4.3% 8.0% 4.7% 6.2% 6.8% Products* 9.6% 11.7% 14.1% 11.9% 11.3% 11.8% Resources 16.2% 15.7% 17.5% 16.8% 15.4% 15.0% OPERATING INCOME * On September 1, 2009, Accenture formed the Communications & High-Tech $ 144,380 $ 141,633 $ 168,166 $ 160,598 $ 193,241 $ 170,657 Health & Public Service operating group by Financial Services $ 194,867 $ 185,015 $ 201,235 $ 191,382 $ 244,581 $ 226,334 combining various health care-related Health & Public Service* $ 134,962 $ 36,799 $ 74,530 $ 40,219 $ 57,783 $ 57,731 components of its Products operating group with Products* $ 116,034 $ 141,209 $ 183,780 $ 151,129 $ 157,261 $ 158,015 its Public Service operating group. Prior-period Resources $ 156,165 $ 146,317 $ 176,119 $ 170,306 $ 174,069 $ 162,626 amounts have been reclassified. Total $ 746,408 $ 650,973 $ 803,830 $ 713,634 $ 826,935 $ 775,363 SOURCE: TBR AND ACCENTURE32 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 33. Appendix- Financial Models TBR ACCENTURES GEOGRAPHIC REVENUE TBR CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 Est. NET REVENUE (IN $ MILLIONS) Americas $ 2,229 $ 2,203 $ 2,513 $ 2,520 $ 2,633 $ 2,553 EMEA $ 2,550 $ 2,386 $ 2,433 $ 2,213 $ 2,638 $ 2,524 Asia Pacific $ 603 $ 587 $ 625 $ 688 $ 775 $ 660 Total $ 5,383 $ 5,176 $ 5,571 $ 5,421 $ 6,046 $ 5,736 AS A PERCENTAGE OF REVENUE Americas 41.4% 42.6% 45.1% 46.5% 43.6% 44.5% EMEA 47.4% 46.1% 43.7% 40.8% 43.6% 44.0% Asia Pacific 11.2% 11.3% 11.2% 12.7% 12.8% 11.5% YEAR-TO-YEAR CHANGE (IN U.S. DOLLARS) TBR SOFTWARE BUSINESS QUARTERLYSM Americas -13.5% -4.1% 11.0% 11.3% 18.1% 15.9% EMEA -11.2% -1.2% 3.9% -2.7% 3.4% 5.8% Asia Pacific 5.8% 6.0% 15.9% 13.1% 28.4% 12.4% SEQUENTIAL CHANGE Americas -1.5% -1.2% 14.1% 0.3% 4.5% -3.1% EMEA 12.1% -6.4% 1.9% -9.0% 19.2% -4.3% Asia Pacific -0.8% -2.7% 6.5% 10.1% 12.7% -14.8% SOURCE: TBR AND ACCENTURE33 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 34. Appendix- Financial Models TBR TBR ACCENTURE OPERATING EXPENSE MODEL (IN $ THOUSANDS) CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Est. Net Revenue $ 5,382,532 $ 5,176,438 $ 5,571,017 $ 5,420,581 $ 6,045,650 $ 5,736,372 Operating Expenses $ 1,037,546 $ 1,039,358 $ 1,127,820 $ 1,131,178 $ 1,117,545 $ 1,111,426 Sales & Marketing Expense $ 621,860 $ 623,386 $ 714,487 $ 698,325 $ 731,471 $ 688,365 General and Administrative Expense $ 412,121 $ 413,335 $ 410,057 $ 432,793 $ 385,726 $ 422,961 R&D Expense $ 84,595 $ 81,356 $ 87,557 $ 85,193 $ 95,017 $ 69,514 Restructuring Costs $ 3,565 $ 2,637 $ 3,276 $ 60 $ 348 $ 100 SALES AND MARKETING EXPENSE BREAKOUT (IN $ THOUSANDS) Sales Expense $ 588,371 $ 591,040 $ 680,373 $ 665,555 $ 696,013 $ 661,626 Marketing Spending $ 33,489 $ 32,346 $ 34,114 $ 32,770 $ 35,458 $ 26,739 Advertising $ 19,874 $ 19,195 $ 20,245 $ 19,447 $ 21,689 $ 15,868 Total Sales and Marketing Expense $ 621,860 $ 623,386 $ 714,487 $ 698,325 $ 731,471 $ 688,365 SPENDING AS A PERCENTAGE OF REVENUE Total Operating Expenses 19.3% 20.1% 20.2% 20.9% 18.5% 19.4% TBR SOFTWARE BUSINESS Sales and Marketing Expense QUARTERLYSM 11.6% 12.0% 12.8% 12.9% 12.1% 12.0% Sales Expense 10.9% 11.4% 12.2% 12.3% 11.5% 11.5% Marketing Spending 0.6% 0.6% 0.6% 0.6% 0.6% 0.5% Advertising 0.37% 0.37% 0.36% 0.36% 0.36% 0.28% General and Administrative 7.7% 8.0% 7.4% 8.0% 6.4% 7.4% Restructuring Costs 0.1% 0.1% 0.1% 0.0% 0.0% 0.0% CORPORATEWIDE HEADCOUNT Sales 4,650 4,500 4,500 4,460 4,460 4,460 General and Administrative 13,357 13,398 13,732 14,154 14,342 16,448 Total Employees 176,063 181,436 190,442 203,860 210,951 218,000 SOURCE: TBR ESTIMATES AND ACCENTURE FINANCIALS34 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 35. Appendix- Financial Models TBR ACCENTURES HEADCOUNT BREAKDOWN TBR CALENDAR QUARTER 4Q09 1Q10 2Q10 3Q10 4Q10 FISCAL QUARTER 1Q10 2Q10 3Q10 4Q10 1Q11 Consulting 46,053 46,149 48,415 50,181 51,955 Solutions 56,905 62,085 65,911 75,791 79,028 Total Consulting & Solutions 102,958 108,234 114,326 125,972 130,983 Services 59,748 59,804 62,384 63,734 65,626 Total Billable 162,706 168,038 176,710 189,706 196,609 Enterprise 13,357 13,398 13,732 14,154 14,342 Total Headcount TBR SOFTWARE BUSINESS QUARTERLYSM 176,063 181,436 190,442 203,860 210,951 SOURCE: ACCENTURE AND TBR35 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 36. Appendix-Graphs TBR Financial Strategy Graphs OPERATING MARGIN TBR CURRENT RATIOTBR20.0% 2.00 13.9% 14.4% 13.2% 13.7%16.0% 12.6% 1.5012.0% 1.45 1.51 1.52 1.46 1.47 8.0% 1.00 4.0% 0.50 0.0% 4Q09 1Q10 2Q10 3Q10 4Q10 0.00 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGESOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR TBR SOFTWARE BUSINESS QUARTERLYSM TBR DEBT/ASSET RATIO 1.00 0.73 0.71 0.71 0.74 0.74 0.80 0.60 0.40 0.20 0.00 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR 36 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 37. Appendix – GraphsAppendix-Graphs TBRFinancial Strategy Graphs RETURN ON ASSETS TBR 20.0% 14.6% 15.2% 16.0% 13.2% 13.5% 13.1% 12.0% 8.0% 4.0% 0.0% 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR TBR RETURN ON EQUITY TBR SOFTWARE BUSINESS QUARTERLYSM 100.0% 80.0% 55.1% 49.9% 48.0% 52.8% 55.7% 60.0% 40.0% 20.0% 0.0% 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR37 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 38. Appendix-Graphs TBRGo-to-Market GraphsTBR REVENUE REVENUE GROWTH TBR $7,000 30.0% $5,383 $5,571 $5,421 $6,046 $6,000 20.0% 12.3% $5,176 8.3% $5,000 10.0% 8.3%In $ Mi l lions $4,000 0.0% -10.0% -1.7% $3,000 $2,000 -20.0% -10.6% -30.0% $1,000 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGESOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR TBR SOFTWARE BUSINESS QUARTERLYSM TBR BACKLOG/REVENUE RATIO TBR DAYS SALES OUTSTANDING 3.00 2.43 2.49 2.43 2.49 2.49 75.00 60.00 2.00 42.96 42.08 42.38 Number of Days 41.86 37.97 45.00 1.00 30.00 15.00 0.00 0.00 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR 38 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 39. Appendix-Graphs TBRResource Management GraphsTBR GROSS MARGIN TBR OPERATING EXPENSES AS A PERCENTAGE OF SALES 40.0% 33.1% 34.7% 30.0% 32.7% 34.0% 32.2% 25.0% 30.0% 19.3% 20.1% 20.2% 20.9% 20.0% 18.5% 20.0% 15.0% 10.0% 10.0% 5.0% 0.0% 0.0% 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGESOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR TBR SOFTWARE BUSINESS QUARTERLYSM TBR REVENUE PER EMPLOYEE $200.0 $150.0 In $ Thousands $117.7 $117.2 $117.4 $114.7 $112.9 $100.0 $50.0 $0.0 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR39 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 40. Appendix-Graphs TBRResource Management GraphsTBR UTILIZATION RATE TBR TURNOVER RATE 100% 88% 88% 88% 20% 86% 87% 17% 15% 17% 80% 12% 15% 15% 60% 40% 10% 20% 5% 0% 0% 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR SOURCE: ACCENTURE AND TBR TBR SOFTWARE BUSINESS QUARTERLYSM TBR OPERATING INCOME PER EMPLOYEE $30.0 $25.0 $15.5 $14.5 $14.3 $14.5 $15.2 In $ Thousands $20.0 $15.0 $10.0 $5.0 $0.0 4Q09 1Q10 2Q10 3Q10 4Q10 ACCENTURE PSBQ AVERAGE SOURCE: ACCENTURE AND TBR40 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 41. Appendix-Tables TBR Accenture Recent Acquisitions ESTIMATED ACQUISITION COMPANY ACQUISITION SYNERGIES NO. OF DATE EMPLOYEES CAS Computer CRM and mobility software for the consumer products November Anwendungs-und industry. Augments Accenture’s industry-specific software 230 2010 Systemberatung AG offerings. November Strengthens Accenture’s embedded software services Mogensis N/A 2010 capabilities. Knowledge Rules, November Enhances Accenture’s Pegasystems capabilities in key U.S. and European markets. N/A Inc. 2010 Ariba’s Sourcing Purchased for $51 million, strengthening Accenture’s November Services & BPO existing sourcing and procurement consulting and 160 2010 outsourcing capabilities. Assets TBR SOFTWARE BUSINESS QUARTERLYSM consulting; complements Accenture’s Management Acceria July 2010 30 automotive and industrial manufacturing capabilities. Enhance vertical analytics (CadenceQuest provides CadenceQuest, Inc. June 2010 35 customer data and analytics for the retail sector). February Risk consulting and software capabilities; allows RiskControl (Brazil) N/A 2010 Accenture to expand in the local Brazilian market. Nokia’s Symbian Consulting services for mobile operating systems; Professional Svcs. October 2009 165 embedded software services for mobile devices. OperationsSOURCE: TBR ESTIMATES AND ACCENTURE 41 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 42. Appendix – TablesAppendix-Tables TBRAccenture’s Portfolio of Services ACCENTURE MANAGEMENT TECHNOLOGY: OUTSOURCING: CONSULTING: Service Lines Systems Integration Service Lines Service Lines • Finance & Performance • Enterprise Solutions and Enterprise • Application Outsourcing Management Resource Planning • Infrastructure Outsourcing • Process & Innovation • Industry and Functional Solutions • Business Process Performance • Information Management Services Outsourcing (BPO) • Talent & Organization • Cloud Computing • Bundled Outsourcing Performance • Custom Solutions • Strategy • Software as a Service (SaaS) • Customer Relationship • Mobility Solutions Management • Microsoft Solutions • Supply Chain Management Technology Consulting Service Lines • Risk Management • Application Portfolio Optimization and Renewal TBR SOFTWARE BUSINESS QUARTERLYSM Architecture • Enterprise • IT Strategy and Transformation • Infrastructure Consulting • IT Security Consulting • Digital Solutions • Research & Development ACCENTURE’S BPO BUSINESSES: Accenture’s industry-specific BPO businesses: Accenture’s function-specific BPO businesses that serve clients • Accenture Health Administration Services across industries are: • Accenture Insurance Services • HR BPO • Customer Contact BPO • Navitaire, Inc. • Learning BPO • Supply Chain BPO • Accenture Utilities Services • Finance and Accounting BPO • Engineering Services Accenture Custom Services • Procurement BPO42 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 43. Appendix-Tables TBRAccenture Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE4Q10 Accenture will implement and manage the state’s Nagaland State December public service portal, state service delivery gateway and Government 42 Months N/A 2010 e-forms to help facilitate the delivery of services India offered by multiple government departments. Accenture will provide Hilton Worldwide withHilton Worldwide December application development and support services for multiyear N/A United States 2010 client’s property management systems and websites. Accenture will provide a suite of Oracle-based National Water December solutions, maintenance and support and change Company N/A N/A 2010 management services to modernize the client’s waste Saudi Arabia water service operations in Riyadh and Jeddah. Ace Private Risk Accentures claims management application (Accenture TBR SOFTWARE BUSINESS QUARTERLYSM December Services Claim Components) was selected to support ACE‘s N/A N/A 2010 United States claims management operation in the U.S. KF Shared Accenture will provide BPO services in finance and November Services AB accounting in support of improving KF Shared Services 6 N/A 2010 Sweden AB’s cost-effectiveness and delivery capabilities. Proton Holdings November Accenture will expand and improve the client’s 21 months N/A Malaysia 2010 enterprise resource planning (ERP) system. Centers for ID/IQ contract, Accenture was selected as the prime $3 billion and Disease Control November contractor to provide information management and IT 10 $1 billion and Prevention 2010 infrastructure services. ceilings United States43 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 44. Appendix-Tables TBRAccenture Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE Accenture will provide engineering services covering U.S. Navy November hardware and software maintenance to help the Navy 5 $6.3 million United States 2010 modernize its ships with mission-critical systems.American Water November Accenture will assist in the development of a strategy for N/A N/A United States 2010 the companys business transformation program. Allianz Life Allianz Life Insurance Company selected Accenture to Insurance November license and implement the Accenture Life Insurance N/A N/A Company 2010 Platform to enhance product development and improve United States customer services. Accenture will develop and implement a new risk SEC SERVIZI November calculation engine to help the bank consortium’s clients N/A N/A Italy 2010 and members assess the probability of loan defaults. TBR SOFTWARE BUSINESS QUARTERLYSMOlympus Memory Accenture will provide ongoing support for strategic November Works planning, systems integration, development using a N/A N/A 2010 Japan public cloud computing environment and BPO services. Contract extension in which Accenture will continue to RSA October Additional provide development, implementation and ongoing N/AUnited Kingdom 2010 3 maintenance services for RSA’s IT applications. Caja de Ahorros Accenture will implement its Alnova Financial Solutions Octoberdel Mediterráneo core banking platform to support the bank’s operations N/A N/A 2010 Spain in Spain.44 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 45. Appendix-Tables TBRAccenture Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE Along with ST Electronics, Accenture has been Singapore’s October selected to design and implement Phase 1 of the Energy Market N/A N/A 2010 client’s Intelligent Energy System pilot project Authority (advanced metering infrastructure and smart grid). Takeda Accenture will provide application and infrastructurePharmaceuticals October outsourcing services including development, testing Multi-year N/A North America 2010 and management services, as well as end-user United States computing and network management. Zurich Financial Zurich Financial Services will apply Accenture’s October Services Group underwriting solution to support its international N/A N/A 2010 Switzerland insurance operations. Accenture won a bid as the prime contractor under TBR SOFTWARE BUSINESS QUARTERLYSM 1 year base U.S. Social the Information Technology Support Services Contract period, 6 Security October (ITSSC), which will enable Accenture to apply additional $2.8 billion Administration 2010 innovative applications in streamlining the SSA’s 1-year United States service delivery capabilities. options3Q10 BGE teamed with Accenture and Oracle to implement Baltimore Gas a smart meter network for its 1.2 million customers. Septemberand Electric (BGE) Accenture will provide SI (design, build and manage), N/A N/A 2010 United States project management support and change management. 45 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 46. Appendix-Tables TBRAccenture Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUESingapore Energy Accenture has been selected by the EMA to design andMarket Authority September implement Singapore’s Intelligent Energy System project. This 2 Multimillion (EMA) 2010 system is intended to enable households to monitor energy Singapore consumption and reduce overall usage. Accenture signed an agreement to develop, implement and DnB NOR September manage the financial services group’s life and pension 5 N/A Norway 2010 insurance applications. Accenture has extended its contract with the subsidiary ofNational Australia September National Australia Bank for application development and Group 3 N/A 2010 management services to a range of the bank’s enterprise and Australia customer applications. U.S. Defense Accenture was awarded a contract by the DLA to integrate the Logistics Agency TBR SOFTWARE BUSINESS QUARTERLYSMchain into its Enterprise Business System September group’s energy supply 4 $73 million (DLA) 2010 program, intended to streamline the DLA’s logistics and United States distribution platform.Stanford Hospital Accenture has been selected to work with Stanford to improve September & Clinics clinical processes and develop new analytic tools for patient- 7 N/A 2010 United States centric solutions. Educational Testing Service August Accenture has extended its contract with the ETS to continue 7 $160 million (ETS) 2010 offering BPO services in end-to-end supply chain management. United States Accenture signed an application outsourcing contract with theNorsk Hydro ASA August client to provide support and maintenance services to two of 3 N/A Norway 2010 Hydro’s SAP systems.46 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 47. Appendix-Tables TBRAccenture Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE University of North Selected to assist in the planning phase for development August Multi-Texas System (UNTS) and implementation of an IT and HR/payroll shared service N/A 2010 year United States for UNTS across campuses and offices. Singapore Ministry Accenture was awarded a contract to deploy the National August of Health Electronic Health Record system for Singapore, which is N/A N/A 2010 Singapore designed to improve healthcare quality and lower costs. Unique Identification Accenture will implement the biometric identification Authority of India July 2010 system, a component of the “Aadhaar” program designed 2 N/A (UIDAI) to offer Indian residents with a unique ID number. India Sun Life Assurance Provide application development and management TBR SOFTWARE BUSINESS QUARTERLYSM the Sun Life Financial group Multi-Company of Canada July 2010 services in support of N/A year Canada subsidiary’s operations in Canada. Accenture was awarded a contract to provide IT systems Taxation and management and development for the European Customs Union Commission’s CUST-DEV2 program, a platform for an July 2010 3 N/ADirectorate General eCustoms system for use by 2013. Accenture will manage Belgium the legacy customs system and specifications for the new platform. Statoil Statoil awarded Accenture a BPO contract to manage July 2010 5 N/A Norway Accounts Payable processes for the energy firm.47 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 48. Appendix-Tables TBRAccenture Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE2Q10 Asprea Applications outsourcing (development and management) United June 2010 and infrastructure outsourcing (service desk, workplace, 8 N/A Kingdom network and telephony, and datacenter service). The IRS has awarded Accenture a one-year contract to 1-year base IRS create a system for online registration and renewal to order (four June 2010 N/A United States improve the quality and efficiency of paid tax return 1-year preparers. options) Henkel Accenture will provide application management services June 2010 6 N/A United States to Henkel’s operations in North America. Hong Kong Accenture will provide its services to design, develop and Housing TBR SOFTWARE BUSINESS QUARTERLYSM resource management (ERP) maintain a new enterprise June 2010 8 $30 million Authority system to improve the efficiency of the processes for China financial management in two phases. 1-year base U.S. Navy Accenture has been awarded a contract to provide order (four Up to $182 June 2010 United States financial management services to the U.S. Navy. 1-year million options) Accenture will work with the University of Michigan on a comprehensive assessment of IT at a campus level and University of how it is distributed and provided across campus. They Michigan May 2010 N/A N/A will be striving to improve interoperability of applications United States and achieve more efficient products, infrastructure and services.48 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 49. Appendix-Tables TBRAccenture Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE Accenture has helped Media Prima update its legacy Media Prima broadcast system with state-of-the-art technology, which Berhad May 2010 N/A N/A has led to better time to market, higher productivity and Malaysia more efficient operations. SICREDI Accenture will provide SICREDI, a credit union in Brazil, May 2010 N/A N/A Brazil with IT support and systems development services. Accenture will license, implement and maintain theAnadolu Sigorta Accenture Claims Components Solution (a claims May 2010 N/A N/A Turkey management application) for the Turkish property and casualty insurer. Ministry of TBR SOFTWARE AccentureQUARTERLYSM BUSINESS will update Singapore schools’ web-based Education April 2010 administrative system by enhancing the existing business 3 N/A Singapore processes and providing application maintenance. Implement a centralized global claims management XL Insurance April 2010 system and update core claims-processing technology in N/A N/A United States order to improve customer service and reduce costs. Accenture has been awarded a contract to update Electrolux IT Electroluxs current portfolio of enterprise applications Solutions AB April 2010 Multiyear N/A and provide application development and management Sweden services.49 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 50. Appendix-Tables TBRAccenture Quarterly Signings CONTRACT CLIENT DATE DESCRIPTION YEARS VALUE Accenture will provide technical assistance (application management) to the Korean Bank. The two companies willHanwha Group April 2010 also partner to market IT solutions and services to other 8 $80 million South Korea banks, insurers and other financial service companies throughout South Korea. Telefonica Accenture will manage the development and maintenance of Group April 2010 applications related to consumer systems, billing and N/A N/A Argentina collections across 17 markets in Latin America and Europe. An application outsourcing contract to develop and maintain Nordea April 2010 applications that support the bank’s customer websites (30 5 N/A Denmark websites). Accenture National Security Services will provide accounting 1 base plus $40.6 billion U.S. Navy TBR2010 andBUSINESS QUARTERLYSM services to the Navy as part of its April SOFTWARE financial management 4 one-year base; $181.8United States financial improvement program. options billion total50 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 51. Appendix-Tables TBR Accenture’s Strategic Alliances by Client Service BusinessAPPLICATION INFRASTRUCTURE: BUSINESS OPERATIONS: CUSTOMER RELATIONSHIPAvanade Business Objects MANAGEMENT:BEA/Oracle Citrix Systems Siebel Systems (part of Oracle)EMC/Documentum Comverse KXENMicrosoft Epitome Systems Interwoven Management Controls VignetteDATA WAREHOUSING: ENTERPRISE INTEGRATION: ENTERPRISE MANAGEMENT:Acxiom BEA/Oracle OracleTeradata Microsoft PeopleSoft (part of Oracle)Oracle TIBCO SAPInformatica webMethods Sun MicrosystemsSymantec AT&T Business Services AprimoFINANCE MANAGEMENTSOFTWARE BUSINESS QUARTERLYSM TBR AND HUMAN RESOURCE MANAGEMENT: PLATFORM:ENTERPRISE PERFORMANCE PeopleSoft HR (part of Oracle) EMCMANAGEMENT: SAP HR HPCognos/IBM Siebel Employee Relationship Sun MicrosystemsCallidus Software Management (part of Oracle) Cisco Systems Advantage Interactive Corporation UnicaSUPPLY CHAIN MANAGEMENT: OTHER: IBM Hardware and Software TechnologyAriba Reuters Group IntecAspen Technology Mercury/HP Open TextPeopleSoft (part of Oracle) Daon Telcordia TechnologiesSAP Fast Search & Transfer (FAST) Vendavo SAS Xign Dell Genesys 51 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 52. Appendix – TablesAppendix-Tables TBRTBR’s Showcase of Major Accenture AlliancesCOMPANY SCOPE OF PARTNERSHIP • Oracle’s Fusion Middleware has been integrated into the Accenture Communications Solutions suite. The partnership targets the telecommunications industry, allowing Oracle the opportunity to prepackage itsOracle solutions for telecom customers while Accenture provides support from a systems integration perspective. • Since 2003, SAP and Accenture have been jointly developing, deploying, supporting and selling software products and services for banks and insurance companies worldwide. Initially, the joint portfolio consisted of the companies’ banking and insurance software products, which cover business functions such as insurance claims management, insurance policy administration, core banking operations and riskSAP management. • SAP and Accenture have assigned approximately 800 people to the combined development effort. The IT experts are located in Germany, Spain and the United States. Revenue is split according to services purchased by the customer. TBR SOFTWARE BUSINESS QUARTERLYSM • Since the 2000 announcement of the Microsoft and Accenture (then Andersen Consulting) global alliance and the formation of a joint venture – Avanade – to deliver enterprise solutions on the Microsoft platform, including Windows 2000 Server, TBR believes the global alliance has been capitalizing on the unique assets of Accenture, Avanade and Microsoft. • The alliance combined scalable enterprise software from Microsoft, Avanade’s deep Microsoft-basedMicrosoft/ skills focused on technology infrastructure optimization and application development and integration,Avanade and the industry-specific business and technology expertise of Accenture consultants. • Accenture Customer Relationship Management Solutions for Siebel on Microsoft.NET is a good example of the joint solutions the alliance has been offering the marketplace. The solutions take advantage of the Microsoft platform’s scalability and are efficient for Siebel applications. CRM solutions also benefit from the lower total cost of ownership provided by reduced hardware acquisition fees and overall lower operating costs.52 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 53. Appendix – TablesAppendix-Tables TBRPhysical Infrastructure and Worldwide Locations ACCENTURE’S LOCATIONSAMERICASBuenos Aires, Argentina Rio de Janeiro, Brazil Sao Paulo, Brazil Brasilia, BrazilCuritiba, Brazil Calgary, Canada Edmonton, Canada Fredericton, CanadaNiagara Region, Canada Mississauga, Canada Montreal, Canada Ottawa, CanadaToronto, Canada Toronto West, Canada Vancouver, Canada Santiago, ChileBogotá, Colombia Mexico City, Mexico Monterrey, Mexico Caracas, VenezuelaTHE UNITED STATESPhoenix Los Angeles Sacramento, Calif. San DiegoSan Francisco San Jose, Calif. Denver Hartford, Conn.Wilmington, Del. Walnut Creek, Calif. Miami Tallahassee, Fla.Tampa Bay/ TBR SOFTWARE BUSINESS QUARTERLYSM Washington D.C. Chicago IndianapolisSt. Petersburg, Fla. Atlanta Milwaukee SeattleKansas City, Kan. Boston Irving, Texas Austin, TexasReston, Va. Houston Minneapolis St. LouisPittsburg Detroit New York City Charlotte, N.C.Florham Park, N.J. Albany, N.Y. Cleveland Columbus, OhioRaleigh, N.C. Cincinnati Murray Hill, N.J. San AntonioPhiladelphia Dallas53 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
  • 54. Appendix – TablesAppendix-Tables TBRPhysical Infrastructure and Worldwide Locations ACCENTURE’S LOCATIONSEMEAWien, Austria Brussels, Belgium Prague, Czech Republic Copenhagen, DenmarkHelsinki, Finland Paris, France Lyon, France Sophia Antipolis, FranceFrankfurt, Germany Berlin, Germany Dusseldorf, Germany Muenchen, GermanyAthens, Greece Budapest, Hungary Dublin, Ireland Belfast, IrelandHerzelia, Israel Milan, Italy Rome, Italy Turin, ItalyLuxembourg Casablanca, Morocco Amsterdam, The Netherlands Lagos, NigeriaBergen, Norway Lillehammer, Norway Oslo, Norway Stavanger, NorwayWarsaw, Poland Lisbon, Portugal Moreira da Maia, Portugal Bucharest, RomaniaMoscow, Russia Riyadh, Saudi Arabia Bratislava, Slovak Republic Cape Town, South AfricaJohannesburg, South Pretoria, South Africa Barcelona, Spain Bilbao, SpainAfrica Sevilla, Spain Goteborg, Sweden Malmo, Sweden TBR SOFTWARE BUSINESS QUARTERLYSMMadrid, Spain Zurich, Switzerland Istanbul, Turkey Abu Dhabi, The United ArabStockholm, Sweden Aberdeen, United Kingdom Edinburgh, United Kingdom EmiratesLondon, United Kingdom Manchester, United Kingdom Newcastle, United KingdomASIA PACIFICBrisbane, Australia Canberra, Australia Melbourne, Australia Perth, AustraliaSydney, Australia Wollongong, Australia Beijing, China Dalian, ChinaGuangzhou, China Hong Kong, China Shanghai, China Bangalore, IndiaChennai, India Gurgaon, India Hyderabad, India Mumbai, IndiaNew Delhi, India Noida, India Pune, India Jakarta, IndonesiaTokyo, Japan Kuala Lumpur, Malaysia Manila, The Philippines Singapore, SingaporeSeoul, South Korea Taipei, Taiwan Bangkok, Thailand54 Accenture 4Q10 | Professional Services Business Quarterly ©2011 Technology Business Research, Inc. © 2010 Technology Business Research, Inc.
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