Accenture
Annual Report 2001

Plain-text annual report

Where Ideas Unfold A Year of Innovations Delivered Annual Report 2001 Structured to Deliver Innovation Accenture delivers innovation to clients by help- ing them identify and capitalize on their most important business and technology opportunities and by providing solutions to their most complex and critical challenges. Its professionals work with clients of all sizes and have relationships with the world's leading companies and govern- ments. The company's size, scale, geographic reach and industry-specific capabilities enable Accenture to quickly deploy teams of profession- als anywhere in the world. The company goes to market through five global market units, as highlighted below, providing specialized capabilities and solutions across 18 industry groups worldwide. Supporting the global market units and industry groups are eight service lines, which bring Accenture's clients the market knowledge, insights and technologies needed to succeed in today's competitive arena. Accenture forms affiliated companies that offer strategically important capabilities that are best handled outside of, but that are readily applicable to, Accenture's client service business. It enters into alliances with leading companies and organi- zations whose capabilities complement its own, acknowledging that no company alone can meet the demands of today's business environment. The Corporate Development organization drives Accenture's strategy development unit and its global investments and venture capital operations. Global Market Units Communications & High Tech Communications—serving the world’s leading wire- line, wireless, cable and satellite communications companies. Electronics & High Tech—serving companies across all segments including aerospace and defense, soft- ware, consumer electronics, computers and office equipment, semiconductors, telecommunications equipment, networks and storage, and contract manufacturing. Media & Entertainment—serving companies within entertainment, publishing, printing and advertising industries that acquire, create, manage and distrib- ute content that informs, educates and entertains. Financial Services Banking—serving retail, commercial and investment banks, diversified financials and securities compa- nies, investment management firms, depositories, exchanges, and online banks and brokerages. With offices in 47 countries, Accenture leverages its local presence and global scale and scope to achieve operational efficiencies through geographic operations. Health Services—serving integrated health care providers, health insurers, managed care organiza- tions, biotechnology and life sciences companies, and selected policy-making authorities. Market-facing Structure Communications & High Tech Financial Services Government Products Resources Eight Service Lines Alliances and Affiliated Companies Geographic Operations in 47 Countries Corporate Development Insurance—serving property and casualty insurers, life insurers, reinsurance firms and insurance brokers. Government Government—serving national, state and local gov- ernments and related organizations focusing on defense, revenue, immigration, human services, postal, education and electoral agencies. Products Automotive—serving auto manufacturers, suppliers, dealers, retailers and service providers, including motor vehicles and parts companies, and rubber and plastic products companies. Consumer Goods & Services—serving food, bever- age, tobacco, household products, personal care, cosmetics and apparel companies. Industrial Equipment—serving industrial and elec- trical equipment, construction, consumer durable and heavy equipment industries, including building materials, glass, industrial and farm equipment companies. Pharmaceuticals & Medical Products—serving companies within the pharmaceuticals, biotech- nology and medical products industries, and other industry-related companies. Retail—serving retail clients including department stores, mass-merchandise and discount stores, specialty retailers, drug and convenience stores, supermarkets and quick-service restaurants. Travel & Transportation—serving freight and passenger transportation, third-party logistics, hos- pitality, gaming, car rental and travel distribution industries, including major airlines, hotels, railroads, package and freight delivery companies, and postal services organizations. Resources Chemicals—serving a majority of the world's largest specialty chemicals, industrial chemicals, petro- chemicals, polymers and plastics, gases and life science companies. Energy—serving a wide range of companies in the oil and gas industry, including upstream, down- stream and oil services companies. Forest Products—serving pulp and paper industries. Metals & Mining—serving metals industry clients located in the world’s key mining regions. Utilities—serving a wide range of companies affiliated with the utilities industry, as well as most of the world’s largest electric, gas and water companies. Global Service Lines Customer Relationship Management Creating significantly higher levels of customer and brand value. Finance & Performance Management Helping chief financial officers create value through world-class finance capabilities. Human Performance Maximizing workforce performance, including elec- tronically enabled human resources. Solutions Engineering Creating innovative, technology-enabled business solutions that deliver value to our clients. Solutions Operations (Outsourcing) Adopting lean, efficient business models and driving enterprise growth through outsourcing. Strategy & Business Architecture Developing strategies that unlock new sources of value. Supply Chain Management Transforming supply chains to improve customer service and drive additional revenues, significantly reduce costs and increase asset productivity. Technology Research & Innovation Leveraging new and emerging technologies to develop the next wave of business solutions, through Accenture Technology Labs. 2001 It has been a big year for us…and an even bigger year for many of our clients. Our 2001 annual report, our first as a public company, tells both stories—how Accenture has transformed itself over the past year, and how we are helping forward-looking companies and organizations create and execute big ideas so that they can transform their own businesses. We’ve illustrated how we help turn shared visions into reality through feature client stories beginning on page 15. Accenture is the world’s leading management and technology services organization. Through its network of businesses approach—in which the company enhances its consulting and outsourcing expertise through alliances, affiliated companies and other capabilities—Accenture delivers innova- tions that help clients across all industries quickly realize their visions. Contents Letter from the Chairman & CEO . . . . . . . . . . . . 8 Feature Client Stories . . . . . . . . . . . . . . . . . . . . . 15 Client Innovation Highlights . . . . . . . . . . . . . . . . 28 Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . 30 Board of Directors and Executive Committee . . . 32 Countries and Key Locations . . . . . . . . . . . . . . . . 34 Shareholder Information . . . . . . . . . . . . . . . . . . . 35 About Accenture . . . . . . . . . . . . . . . . . . . . . . . . . 36 . d e v r e s e r s t h g i r l l A . e r u t n e c c A 1 0 0 2 © Where did the idea come from? In a car, on a train, at a café outside of Cologne? No one quite remembers. But the thought is so stirring, it makes your heart race just considering the opportunity. So what do you do now? 1 Companies market their innovations. Why can’t countries? Civil Service College, Singapore 2 Yam Ah Mee, Chief Executive Officer What if we could build more systems with less inventory? Dell Dick Hunter, Vice President, Americas Manufacturing Operations & Supply Chain Management 3 You can’t build the store of the future with yesterday’s technology. Sainsbury’s 4 Robert Willett, Partner, Accenture Universal commerce demands a new universe of technology solutions. Visa Sara Garrison, Senior Vice President, Network & Open Systems, Visa U.S.A. 5 We can’t strike oil in the back office. Wait a minute, maybe we can. BP Exploration, North Sea 6 Anne Macdonald, Control Manager Business Support Services Great ideas abound in business. Unfolding Great ideas abound in business. those ideas—from fragile notions to robust reality—is the challenge. Accenture works with clients to turn big ideas into even bigger business opportunities. We help transform revelations into results. 7 7 Joe W. Forehand, Chairman & CEO To Our Stakeholders: Accenture is known for stretching industry boundaries and embracing change…and this past year was unlike any we have ever experienced. We capitalized on several big ideas that show- cased our entrepreneurial spirit and our ability to innovate and execute. We helped our clients realize significant results, and we continued to build a strong capital structure to position us for long-term growth. In true Accenture fashion, we accomplished our goals without missing a beat, and I could not be more proud of what we have achieved. Let me share with you some of the highlights. Not Just a New Name, a New Company Our theme this past year was transformation. With the successful resolution of our arbitration on August 7, 2000, we became a fully indepen- dent organization. That launched our journey to reinvent our marketplace image to mirror our own internal transformation. On January 1, 2001, we were proudly renamed, redefined and reborn as Accenture. As part of this reinvention, we established a new vision to stretch our organization. We developed a new strategy to move beyond consulting, redefining Accenture as a “network of businesses” to enhance our consulting and outsourcing expertise through alliances, affiliated companies and other capabilities. And we focused on executing our three strategic imperatives: achieving bold growth, fostering a great place to work and enhancing our operational effectiveness. To serve our clients and grow our business, we launched several initiatives, including: • Making investments in research and development and intellectual property to anticipate future waves of technological and business change. • Developing proprietary offerings to create value within a given industry and accelerate top- and bottom-line growth. • Creating assets, such as software and business architectures, that enable us to implement market-ready solutions for our clients. 8 Three strategic imperatives: achieving bold growth, fostering a great place to work and enhancing our operational effectiveness. • Leveraging our industry expertise and business process skills to help clients transform fundamental business operations. To accelerate the execution of our strategy and ensure our position as a market leader, the Accenture partners voted overwhelmingly in April 2001 to proceed with an initial public offering. After completing one of the most complex global restructurings ever and the SEC registration process, Accenture was listed on the New York Stock Exchange on July 19, 2001, under the symbol ACN. This long-term, strategic move has strengthened our ability to deliver the highest-value solutions to our clients, and to provide competitive rewards to continue to motivate and attract the best people. Delivering Results to Our Shareholders Our transformation this year was ultimately focused on one objective—achieving our perfor- mance goals by delivering superior client service and effectively running our business. We met this objective on all fronts. In the midst of our own transformation, the world’s economies were shifting, and our resilience and resolve were put to the test. Yet in spite of the sluggish economy in several parts of the world, we ended the year in a position of strength from which we can face the uncertainties ahead. For fiscal year 2001, our net revenues were $11.44 billion, an increase of 17 percent in US dollars and 23 percent in local currency over the previous fiscal year, well above the average for our industry. Our outsourcing business increased 20 percent to $1.98 billion, accounting for more than 17 percent of net revenues. Contributing to our strong fiscal- year performance was double-digit growth in all five of our global market units and in our two largest geographic areas. We also exceeded our operating income and earnings targets. Our pro forma diluted earnings per share, excluding quar- terly net gains on investments and the related tax effect, increased 26 percent for fiscal year 2001 to $0.78 from $0.62. 9 Pro Forma Diluted Earnings Per Share Excluding Quarterly Net Gains on Investments and the Related Tax Effect $0.78 $0.62 2000 2001 In short, we have made a strong commitment to our long-term financial objectives: • To grow revenues faster than the industry. • To expand our operating margin by 50 to 100 basis points per year in each of the next three years. • To grow earnings per share at 15 percent or higher. Delivering Results to Our Clients At Accenture, we believe that delivering value to our clients is the best way to deliver value to our shareholders. In fact, we have achieved a compound annual growth rate in our revenues of 18.9 percent since 1989 because we have continuously reinvented ourselves to remain relevant to our clients and the marketplace. Underlying everything we do is a commitment to helping our clients improve their business performance. In the pages of this report, you will find the stories of just a few of the many clients with whom we are so proud to work. Some of these stories describe transformational outsourcing, an approach we pioneered. By combining outsourcing with elements of our consulting business, we are helping clients change their business functions to achieve rapid, sustainable performance improvement. This approach is a critical part of our intent to move beyond consulting and take greater responsibility for helping our clients achieve their business results. One example is our multiyear business process out- sourcing agreement with Avaya Inc., a global leader in networking solutions and services. Through this relationship, we are assuming management of Avaya University, a global network of more than 200 people who train Avaya employees, customers and business partners. Companies like Avaya are turning to Accenture to implement business process outsourcing to drive demonstrable results and make an immediate impact on the bottom line. The outsourcing of Avaya University to Accenture enables Avaya to rapidly expand the 10 Worldwide Revenues Before Reimbursements US Dollars in Millions Years Ending August 31 $11,444 $9,550 $9,752 $8,215 $6,275 $4,942 $4,001 $3,220 $2,583 $2,833 $2,256 $1,876 $1,433 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 reach and scale of its training to larger global audiences, while at the same time improving efficiency and managing costs within defined performance levels. A Unique Force in the Marketplace Strategically, Accenture is well positioned for growth, with several factors underpinning our success. Let me focus on three. First is the power of our global scale and scope. More than 75,000 Accenture people in 47 countries serve clients across 18 industry groups. We are unique in our ability to mobilize the right resources with the right skills to bring ideas to life faster. Our eight service lines function as our innovation engines, where the best tools, technology and expertise intersect. Second, we are immensely proud of our deep and enduring client relationships, serving 86 of the Fortune Global 100 and more than half of the Fortune Global 500. Many of our clients have been with us for more than a decade, and we consider these relationships the crown jewels of our business. Third, our network of businesses approach gives us the unique ability to leverage our alliances and business relationships to deliver broad-based services to our clients. The real power of the network is the synergy between our client service business— with its relationships and proven solutions—and our affiliates, alliances and Accenture Technology Ventures, our venture capital business—with their emphasis on new technologies and business models. We believe this approach provides us with a fundamental advantage in the marketplace. A strong example of the network in action is our market-leading alliance with Microsoft and the joint venture we established, Avanade. By partnering with Microsoft and Avanade, we bring a solutions-oriented approach to the rapidly expanding use of Microsoft technologies at the enterprise level. 11 We are unique in our ability to mobilize the right resources with the right skills to bring ideas to life faster. Committed to Our People All of the elements above come together with our people, and I am immensely proud of and grateful to the people of Accenture for their relentless focus on client service, their creativity and their ability to embrace change. Our people deserve special praise for their resilience this past year as we faced the extremely difficult decision to reduce the size of our workforce due to the slowdown in the global economy. Both the reductions in staff and our innovative FlexLeave sabbatical program were necessary to help us improve operational efficiency and balance our staffing levels with the demand for our services. Despite this tough decision, making Accenture a great place to work remains a strategic priority. We have established metrics to hold leadership accountable for employee satisfaction and reten- tion, with the belief that having satisfied people leads to satisfied clients. Also, we continue to take bold steps in developing leaders who are known for innovative thinking, entrepreneurship, and their ability to serve clients and lead people. Our belief in strong leadership is one reason we doubled our partnership in September 2000, ensuring we put the best minds and leaders into the marketplace to help deliver on our commit- ments to our clients and shareholders. Finally, we implemented an employee equity grant program to give our people an ownership interest in Accenture on IPO day—a program we believe is unmatched in our industry. We also implemented an employee share purchase program in which close to 39 percent of Accenture employees enrolled. According to our independent financial advisors, this is one of the highest first-time participation rates they have ever seen. Committed to Growth Looking ahead, we have a continued focus on both revenue growth and effective cost management that makes Accenture among the best-positioned companies in the services sector. However, we are 12 not immune to market forces. In addition, the impact of the September 11 terrorist attacks in the United States and the responses to them make it increasingly difficult to predict how the geopolitical and economic climate will affect the marketplace overall. That said, we do see Accenture as more resilient than most of our competitors. Unlike pure consul- tancies, we provide a broad range of services and are better positioned to deliver large, multiyear business transformation outsourcing solutions. We are also investing in our global network of solutions delivery centers—both in our major markets and offshore—to provide more price- competitive approaches in delivering technology and outsourcing solutions to our clients. determination of our people will allow Accenture to manage through these uncertain times. In closing, we at Accenture see no better time than the present to help our clients and ourselves execute big ideas and innovate. We have the right strategy and structure to create an exciting new future…for our clients and business partners, our people and our shareholders. We look forward to another year of turning big ideas into even bigger results. So, despite the challenges that may lie ahead, I believe the diverse nature of our business by both industry and geography, our commitment to bringing innovation to life for our clients, and the Joe W. Forehand Chairman & CEO November 29, 2001 13 They were husbands and wives, mothers and fathers, associates and best friends. And they will always be in our hearts. Twelve Accenture colleagues lost their lives in the World Trade Center disaster, and countless others were directly affected by the tragedies that day. We dedicate this year’s annual report to their memories, as we pledge our hearts and spirits to the families of their loved ones. Accenture people around the globe responded immediately to the tragic events of September 11, 2001, reaching out to help those in need. Our people gave their time, working around the clock to build the Family Assistance Center in New York to provide much-needed aid to the families of victims. Our people gave of themselves, through their per- sonal sacrifices and volunteer efforts worldwide. For instance, The Accenture Foundation, Inc.* established the Accenture Disaster Relief Fund to aid Accenture people, their families and others who have been affected by the tragedies. Accenture people, families and friends donated more than $1 million to the relief fund and Accenture donated $1 million in matching contributions. Additionally, Accenture provided a $1 million direct contribution to the Red Cross Disaster Relief Fund, and also pledged $1 million in the form of in-kind services to help New York City. We will never forget our colleagues or those affected by the disaster, just as we will never forget the heroic efforts of the people who tried to save them. * The Accenture Foundation, Inc. is a 501(c)(3) public charity that supports educational and other charitable activities. 14 Every day, Accenture people are working to accelerate the visions of forward-looking companies and organizations all over the globe. Here are just five of those stories. Client Story Contents Dell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Visa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Civil Service College, Singapore . . . . . . . . . . . . 20 North Sea Oil and Gas Industry . . . . . . . . . . . . . 22 Sainsbury's . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 15 16 Dell Parmer North 2 Factory, Austin, Texas Dell Dick Hunter, Dell, Austin, Texas What if we could build more systems with less inventory? Dell revolutionizes build-to-order manufacturing (again). You won’t find the words “good enough” in Dell’s dictionary. The innovative computer systems giant is known for pursuing goals that would be imponderable for other companies. the company’s buyer/planners the ability to “visualize” and orchestrate the entire supply chain process, rather than merely juggling resources to fill the broad range of orders the company receives in any given day. Case in point: in early 2000, Dell set out to upgrade its already world-class supply chain and manufacturing infrastructure to operate on no more than two hours of component inventory at a time. With the help of Accenture, Dell delivered on that goal in the United States only 109 days later. By mid-2001, leveraging Accenture’s global staff and resources, the new system was in place at Dell’s plants worldwide. In only one year, the bold initiative already has generated a 500 percent return on investment. It is also helping Dell adapt more quickly to fast-changing technologies with less capital risk. “Alliances like i2 enable us to accelerate results for our clients,” explained Accenture client partner David Pope. “Dell is now in an even stronger position to expand its leadership and efficiently meet demanding customer requirements.” Accenture’s solution is driven by a sophisticated Internet-based computing application that enables Dell to accurately forecast needs, order materials and direct factory scheduling based on countless real-world variables and constraints. The application, developed in part by Dell and Accenture alliance partner i2 Technologies, gives 17 Visa Sara Garrison, Visa, San Mateo County, California Universal commerce demands a new universe of technology solutions. Going everywhere Visa wants to be. It’s hard enough for some businesses to plan quarter to quarter. Visa is helping its member financial institutions “see” many years into the future. The vision is called universal commerce—or uCommerce—a world in which payment transac- tions will be able to take place anywhere, anytime and in any way. This could be in a store, over the telephone, via a handheld device or interactive TV, through a paperless business-to-business transac- tion or via boundless other new payment methods. Transforming its existing legacy computing systems to handle the volume growth and com- plexity of this “new world of payments” was an enormous task. So Visa turned to Accenture for help. Our solution: Visa Direct Exchange, a secure, scalable, open-system technology platform that will be the network and messaging backbone of Visa’s uCommerce initiatives for years to come. Initially, Accenture and Visa worked together to define, engineer and validate the Direct Exchange concept. We then helped Visa work with 10 strategic partners to efficiently design, build and launch Direct Exchange, without interruption to existing services. The new system—one of the largest of its kind in the world—is able to grow to support more than 40 billion transactions per year, with near-term capabilities of 20,000 trans- actions per second. In addition to handling these extreme volumes, Visa Direct Exchange provides buyers and sellers with better information and increased security. “Direct Exchange gives Visa and its members the ability to grow and to create new products as uCommerce takes new forms,” said Scott Thompson, executive vice president, Technology Solutions, Visa U.S.A. “As part of our ongoing 30-year rela- tionship, Visa and Accenture have teamed to pro- mote uCommerce to businesses worldwide.” 18 Scott Thompson, Executive Vice President, Technology Solutions, Visa U.S.A., San Mateo County, California 19 Civil Service College, Singapore Yam Ah Mee, Civil Service College, Singapore Companies market their innovations. Why can’t countries? Creating the Singapore Learning Exchange. Singapore is a small island that thinks big. The progressive nation has evolved dramatically over the past decade, driven by one of the fastest-growing economies in the world. Providing world-class public service to its rapidly changing population is a complex job. But through an innovative joint venture with Accenture, the Singapore government has not only answered the challenge, it has created a dynamic education platform that it can market to other countries: the Singapore Learning Exchange. Launched in August 2001, the Singapore Learning Exchange is an “online marketplace” for delivering Internet-based and traditional education and training programs to the country’s 60,000 civil servants and 4.3 million citizens. Featuring an anywhere-anytime curriculum of premier life-long learning programs, the Learning Exchange will enable the country’s civil servants to continuously improve their skills, expand their careers and deliver better government service. The Learning Exchange grew out of an earlier collaboration between Singapore and Accenture that saved the government S$15.8 million (US$8.9 million) in 2000 alone. To create even greater benefits, it will also be marketed to other coun- tries and to corporations, potentially providing a long-term source of income for the island nation. “The Learning Exchange is a new model for public- and private-sector collaboration,” said Jung Wei Foo, Accenture client partner. “For the government, it is an innovative way to multiply the value of its assets. For us, it represents a first step toward a significant e-learning and training business around the world.” 20 Richard Yeo, Senior Executive, System Development, Civil Service College, Singapore Sylvia Cheong, Senior Executive, System Development, Civil Service College, Singapore 21 22 Larissa Koudeleva, Accounts Assistant, and Mubbasher Khanzada, Junior Systems Engineer, Accenture, Aberdeen, Scotland North Sea Oil and Gas Industry Anne Macdonald, BP Exploration, North Sea We can’t strike oil in the back office. Wait a minute, maybe we can. Innovative outsourcing contract fuels growth. Drilling for oil and gas in the North Sea is tough work—and not just because of the weather. Rising costs and volatile pricing make financial management in this inclement environment equally challenging. With the help of an outsourcing service contract with Accenture, six oil and gas companies* in the region continue to grow and enhance their com- petitive positions despite the difficult conditions. Not only have some of these companies achieved savings of 30 to 50 percent on finance and accounting costs, they also have greatly enhanced their financial systems and services, positioning themselves for growth even as the industry matures. Originally created to serve BP Exploration more than 10 years ago, our multiclient outsourcing center in Aberdeen, Scotland, has grown to employ approximately 450 Accenture professionals who provide finance and accounting services to companies that handle approximately 40 percent of the oil and gas production in the North Sea. “Two of our major clients have nearly doubled in size in the last two years alone,” explained John Gillespie, Accenture client partner. “We have also been able to offer new services across the client base that would be far more costly for individual companies to acquire, including a shared SAP accounting platform and a suite of innovative Web-based initiatives.” Using Aberdeen as a model, we have developed similar arrangements with oil and gas producers and refiners in Houston, Texas; Anchorage, Alaska; Budapest, Hungary; Stavanger, Norway; and Warwick, United Kingdom. We are also pursuing outsourcing agreements with companies outside of these regions and in other industries that can benefit from similar innovations and shared solutions to common challenges. * BP, Talisman Energy UK Ltd, Conoco (U.K.) Limited, LASMO plc, TotalFinaElf Exploration UK PLC, BOL (Britannia Operator Ltd) 23 Sainsbury’s Robert Willett, Accenture, London, England You can’t build the store of the future with yesterday’s technology. NCR, Retek and Blue Martini Software—we have been able to move quickly to streamline many of Sainsbury’s business processes and begin to build a new information technology system to support the demands of modern retailing and consumers. Working with Sainsbury’s management, we have also laid the groundwork for a total business transformation, which over time will include modernizing the company, its store layouts and ways of working. “We’re building the ‘roadways’ to help Sainsbury’s reach its desired destination as the United Kingdom’s first choice for food shopping,” said Accenture client partner Robert Willett. “Transforming the company’s infrastructure is the first crucial step in transforming its ability to serve customers.” Restoring the luster of a retailing legend. When Sir Peter Davis took over as chief executive at J Sainsbury plc in March 2000, he faced a big challenge. After a decade-long decline, the legendary supermarket chain had lost its premier position with UK consumers. Its business systems and processes were woefully out of date. The company’s stock traded at historic lows. Sainsbury’s needed to restore once-loyal customer relationships, replace aging technology and rapidly reduce costs. Davis and his board of directors turned to Accenture for help, signing a seven-year agreement to transform Sainsbury’s business. Central to this partnership, Accenture took over all aspects of the food retailer’s information technology infrastructure, resulting in immediate savings of more than UK£35 million (US$50 million) a year. By leveraging the capabilities of our network of businesses partners—including Sun Microsystems, 24 Sainsbury’s, Chingford, Essex, England 25 Whether it’s your idea or Accenture’s... It’s not how many ideas you have, 26 it’s how many you make happen. 27 With clients in 18 industry groups across 47 countries, Accenture is working to address some of the greatest business challenges and opportunities worldwide. Here are some of the ways we are delivering innovation to help our clients rapidly achieve their visions: We are assisting the Australian Health Insurance Commission (HIC) in implementing technology that enables consumers, providers and pharmacists to perform online, self-service transactions in a fast, simple and cost-effective manner. We are helping The BOC Group, a global industrial gases leader based in the United Kingdom, implement an enterprise resource planning system designed to generate significant savings. We helped British Gas in the ongoing development of its utilities business by creating a consumer-friendly website that provides British consumers with comprehensive home-management services, from bill paying to home buying. By creating an easy-to-use Web-based claims management system, we are helping the Chubb Group of Insurance Companies revolutionize its claims handling process. For Coca-Cola Bottlers Philippines, we developed a shared-services strategy for reducing the cost and improving the service of the company’s finance organization. Through an innovative customer loyalty and rewards program, we are helping Deutsche Telekom improve customer retention and communications. We built a customer relationship management system to help Germany’s Dresdner Bank link its service centers and branches to maximize sales, productivity and profits. Teaming with Avanade and Microsoft, we helped EMI Recorded Music implement a storage and retrieval solution for more than 135,000 digitized music assets, which can be distributed anywhere, anytime, in any digital format. We helped Pennsylvania-based Glatfelter redefine its mission and strategy, shifting from commodity forest products to higher-margin market segments. Together with Highmark Blue Cross Blue Shield, we developed a Web-based solution to help the insurer control costs and reduce administrative hassles for health care providers. Together with Telewest, a UK communications and media group, we created Imagine Broadband to develop the most 28 Through a major services agree- ment, we are providing internal application development and maintenance for Microsoft Operations and Sales. We are helping Shell Exploration and Production standardize its global processes, data and infor- mation technology infrastructure to realize substantial savings. innovative broadband products and to be the leading integrator of broadband delivery platforms worldwide. We created Indeliq, a new Accenture company that provides simulation-based e-learning applications to improve business performance. We worked closely with Marriott International to jointly create a shared services center to centralize many of Marriott’s finance functions, generating millions of dollars in annual benefits for the company. We are helping Peugeot improve customer service, increase sales and strengthen relationships with dealers and consumers via the Internet. We helped develop and launch Quadrem, a global electronic marketplace that enables mining, minerals and metals companies to reduce costs in procurement and supply chain management. We partnered with Spain’s Mecalux to create LogisMarket, a global electronic marketplace for buyers and sellers of storage, handling, maintenance and transport goods and services. With Retek, we are marketing “Scientific Retailing,” combining our retail expertise with jointly developed predictive applica- tions to optimize retailers’ supply and demand decisions. In less than nine months, we helped Sony Computer Entertainment Europe build a new marketing and distribution channel to roll out its PlayStation 2 across the continent. We worked with Takeda Pharmaceuticals America to build a comprehensive set of business capabilities, including drug devel- opment, sales and marketing, and supply chain management. We are helping UNAIDS in Geneva build a global portal to enable professionals in 180 countries to share information to combat HIV/AIDS. 29 Financial Highlights Revenues Before Reimbursements by Area Worldwide Revenues Americas EMEAI (1) Asia Pacific 2001 $ 11,444 6,180 4,438 826 Percent Change 17 17 20 6 $ 2000 9,752 5,262 3,709 781 Percent Change 2 1 1 14 $ 1999 9,550 5,208 3,657 685 Global Market Unit Information Communications & High Tech Revenues before reimbursements Operating income, excluding one-time charges(2) $ 3,226 650 Financial Services Revenues before reimbursements Operating income, excluding one-time charges(2) Government Revenues before reimbursements Operating income, excluding one-time charges(2) Products Revenues before reimbursements Operating income, excluding one-time charges(2) Resources Revenues before reimbursements Operating income, excluding one-time charges(2) Other (3) Revenues before reimbursements Operating income, excluding one-time charges(2) 2,897 770 1,003 121 2,272 494 1,971 382 75 94 Total Revenues before reimbursements Operating income, excluding one-time charges(2) $ 11,444 2,511 15 2 14 18 26 71 20 27 19 53 36 11 17 20 $ 2,806 638 12 20 $ 2,499 532 2,542 653 797 71 1,891 390 1,661 249 (7) (20) 3 (24) 14 56 (8) (7) 55 85 (10) 13 2,737 814 777 94 1,664 250 1,812 267 61 75 $ 9,752 2,086 2 3 $ 9,550 2,032 (1) EMEAI includes Europe, Middle East, Africa and India. (2) In 2001, one-time charges totaled $1,815 to rename the organization, to complete the transition to a corporate structure and for the one-time grants of restricted share units to partners, former partners and employees. (3) Other includes our consolidated affiliate companies and operations, which are not related to a global market unit, as well as an interest credit to offset interest expense charged directly to the global market units in arriving at Operating income, excluding one-time charges. US dollar amounts in millions for the years ended August 31, 1999-2001. All amounts throughout this annual report are stated in US dollars, except where noted. The complete text of Accenture's Annual Report on Form 10-K for the year ended August 31, 2001, can be viewed via the Internet at the Investor Relations section of our website at: www.accenture.com. 30 Combined and Consolidated Balance Sheets Assets Current Assets Cash and cash equivalents Receivables from clients Unbilled services Other current assets Total current assets Non-Current Assets Investments Property and equipment, net Other non-current assets Total non-current assets Total Assets Liabilities and Shareholders’ Equity Current Liabilities Short-term debt Accounts payable Deferred revenues Accrued payroll and related benefits Other accrued liabilities Total current liabilities Non-Current Liabilities Long-term debt Other non-current liabilities Total non-current liabilities Minority Interest Equity Shareholders’ equity Partners’ capital Total equity Total Liabilities and Shareholders’ Equity US dollar amounts in thousands at August 31, 2000 and 2001. Consolidated Balance Sheet 2001 Combined Balance Sheet 2000 $ 1,880,083 1,498,812 731,802 468,940 4,579,637 324,139 822,318 335,262 1,481,719 $ 6,061,356 $ 190,669 371,794 810,043 1,050,385 1,755,929 4,178,820 1,090 1,191,332 1,192,422 407,926 $ 1,270,516 1,450,555 682,935 595,279 3,999,285 509,665 705,508 236,839 1,452,012 $ 5,451,297 $ 194,686 233,737 948,390 700,843 906,323 2,983,979 98,865 - 98,865 - 282,188 - 282,188 $ 6,061,356 - 2,368,453 2,368,453 $ 5,451,297 The complete text of Accenture's Annual Report on Form 10-K for the year ended August 31, 2001, can be viewed via the Internet at the Investor Relations section of our website at: www.accenture.com. 31 Board of Directors Executive Committee Masakatsu Mori 3 Country Managing Director– Japan and Managing Partner–Japan Operating Unit Accenture Diego Visconti Country Managing Director– Italy and Managing Partner– Communications & High Tech Global Market Unit, Europe and Latin America Accenture Wulf von Schimmelmann 1, 3 Chief Executive Officer Deutsche Postbank Jackson L. Wilson, Jr. Corporate Development Officer and Managing General Partner–Accenture Technology Ventures Accenture 1 Audit Committee, 2 Compensation Committee, 3 Nominating Committee Arnaud André* Managing Partner-Global People Matters & Enablement Paris Douglas G. Scrivner* General Counsel and Secretary Palo Alto Tim Breene* Managing Partner-Global Service Lines Boston Pamela J. Craig* Managing Partner-Global Business Operations New York Karl-Heinz Flöther* Managing Partner-Financial Services Global Market Unit Frankfurt Joe W. Forehand* Chairman & CEO Dallas William D. Green* Managing Partner- Communications & High Tech Global Market Unit and Country Managing Director- United States Boston Gregg G. Hartemayer* Managing Partner-Products Global Market Unit Chicago David R. Hunter* Managing Partner- Government Global Market Unit Sydney Stephan A. James* Chief Operating Officer Dallas José Luis Manzanares* Managing Partner-IT & Geographic Services Madrid Michael G. McGrath* Capital Risk Officer Palo Alto Mary A. Tolan* Managing Partner-Resources Global Market Unit Chicago Jackson L. Wilson, Jr.* Corporate Development Officer and Managing General Partner-Accenture Technology Ventures Dallas Harry L. You* Chief Financial Officer and Chief Accounting Officer Dallas * Also members of the Management Committee and Executive Officers of Accenture Raúl E. Alvarado Managing Partner- Communications & High Tech Global Market Unit, Business Operations Madrid Susan B. Butler Managing Partner-Office of the CEO Dallas Gianfranco Casati General Partner-Accenture Technology Ventures Milan Yew Chye Ching Managing Partner-Financial Services Global Market Unit, Asia Kuala Lumpur Martin I. Cole Managing Partner-Solutions Operations Service Line Hartford Joe W. Forehand Chairman & CEO Accenture Steven A. Ballmer 3 Chief Executive Officer Microsoft Corp. Dina Dublon 2 Executive Vice President and Chief Financial Officer J.P. Morgan Chase & Co. Karl-Heinz Flöther Managing Partner–Financial Services Global Market Unit Accenture Joel P. Friedman 3 Managing General Partner– Accenture Technology Ventures, Americas Accenture William D. Green 2 Managing Partner– Communications & High Tech Global Market Unit and Country Managing Director- United States Accenture Stephan A. James Chief Operating Officer Accenture Robert I. Lipp 1 Former Chairman Travelers Property Casualty and Former Vice Chairman Citigroup Blythe J. McGarvie 1 Executive Vice President and Chief Financial Officer BIC Group Sir Mark Moody-Stuart 2, 3 Former Chairman Royal Dutch/Shell Group of Companies and Former Chairman The Shell Transport and Trading Company 32 Diego Visconti Country Managing Director- Italy and Managing Partner- Communications & High Tech Global Market Unit, Europe and Latin America Milan Ian Watmore Country Managing Director- United Kingdom Manchester Robert A. Willett Managing Partner-Retail London Derek B. Young Country Managing Director- Australia and Managing Partner-Financial Services Global Market Unit, Asia Pacific Melbourne Joellin Comerford Managing Partner-Strategic Capital for the Americas New York James Hall Managing Partner-Technology Business Solutions London James E. Murphy Global Managing Director- Marketing & Communications New York William C. Copacino Managing Partner-Supply Chain Management Service Line Boston Juan Domènech Managing Partner- Government Global Market Unit, Europe, Latin America and Africa Barcelona Vernon J. Ellis International Chairman London Eddy J. Fikse Managing Partner-Resources Global Market Unit, North America Dallas Mark Foster Managing Partner-Products Global Market Unit, Europe London John G. Freeland Managing Partner-Customer Relationship Management Service Line New York Robert N. Frerichs Managing Partner and Market Maker- Communications & High Tech Global Market Unit Los Angeles Joel P. Friedman Managing General Partner- Accenture Technology Ventures, Americas San Francisco Benoît Génuini Country Managing Director- France and Managing Partner- Resources Global Market Unit, France Paris F. Edwin Harbach Chief Operating Officer-Japan Operating Unit Tokyo Thomas H. Pike Managing Partner-Growth & Strategy New York Graham T. Henry Managing Partner-Growth & Strategy, Asia Hong Kong Roger Ingold Managing Partner-Products Global Market Unit, Latin America São Paulo Timothy G. Jury Managing Partner- Communications & High Tech Global Market Unit, North America Kansas City Thomas Köhler Managing Partner-Products Global Market Unit, Austria, Switzerland and Germany and Country Managing Director- Germany Frankfurt Michael J. May Managing Partner-Strategy & Business Architecture Service Line and Managing Partner-Thought Leadership New York Carol E. Meyer Partner-Investor Relations New York David Milner Managing Partner-Financial Services Global Market Unit, North Europe London Masakatsu Mori Country Managing Director- Japan and Managing Partner-Japan Operating Unit Tokyo Gill Rider Managing Partner-Resources Global Market Unit, Europe, Middle East, Africa and Latin America London Stephen J. Rohleder Managing Partner- Government Global Market Unit, United States Washington, D.C. David E. Seibel Country Managing Director- Canada Ottawa Magnus Sjöqvist Country Managing Director- Sweden Stockholm Thomas J. Skelly Managing Partner-Financial Services Global Market Unit, Banking and Insurance, North America Chicago Stephen M. Smith Managing Partner-Products Global Market Unit, Americas, Australia, New Zealand and Asia Philadelphia Jesse B. Tutor Managing Partner-Partner/ Associate Partner Matters Houston Carlos Vidal Country Managing Director- Spain and Managing Partner- Financial Services Global Market Unit, South Europe, Africa and Latin America Madrid 33 Countries and Key Locations Hungary Budapest India Mumbai New Delhi Indonesia Jakarta Ireland Dublin Italy Milan Rome Turin Japan Osaka Tokyo Korea Seoul Luxembourg Luxembourg Malaysia Kuala Lumpur Mexico Mexico City Monterrey The Netherlands Amsterdam New Zealand Wellington Nigeria Lagos Norway Oslo Stavanger People’s Republic of China Beijing Hong Kong SAR Shanghai The Philippines Manila Poland Warsaw Portugal Lisbon Porto Russia Moscow Saudi Arabia Riyadh Singapore Singapore Slovak Republic Bratislava South Africa Cape Town Johannesburg Pretoria Spain Barcelona Bilbao Madrid Sevilla Sweden Gothenburg Stockholm Switzerland Zürich Taiwan Taipei Thailand Bangkok Turkey Istanbul United Arab Emirates Abu Dhabi Dubai United Kingdom London Manchester Newcastle United States Albany, New York Atlanta, Georgia Austin, Texas Boston, Massachusetts Charlotte, North Carolina Chicago, Illinois Cincinnati, Ohio Cleveland, Ohio Columbus, Ohio Dallas, Texas Denver, Colorado Detroit, Michigan Florham Park, New Jersey Hartford, Connecticut Houston, Texas Indianapolis, Indiana Kansas City, Missouri Los Angeles, California Miami, Florida Milwaukee, Wisconsin Minneapolis, Minnesota New York, New York Palo Alto, California Philadelphia, Pennsylvania Phoenix, Arizona Pittsburgh, Pennsylvania Raleigh, North Carolina Sacramento, California St. Louis, Missouri St. Petersburg, Florida San Francisco, California Seattle, Washington Tallahassee, Florida Washington, D.C. Wilmington, Delaware Venezuela Caracas Argentina Buenos Aires Australia Brisbane Canberra Melbourne Sydney Austria Vienna Belgium Brussels Brazil Rio de Janeiro São Paulo Canada Montréal Ottawa Toronto Vancouver Chile Santiago de Chile Colombia Bogotá Czech Republic Prague Denmark Copenhagen Finland Helsinki France Lyon Paris Sophia Antipolis Germany Berlin Düsseldorf Frankfurt Hamburg Munich Greece Athens 34 Shareholder Information Stock Listing Accenture is traded on the New York Stock Exchange under the symbol ACN. Investor Relations Securities analysts, institutional investors and other portfolio managers may contact: Carol Meyer, Partner–Investor Relations Accenture 1345 Avenue of the Americas, 18th Floor New York, NY 10105 Telephone: +1 917 452 4578 Fax : +1 917 527 6126 E-mail: investor.relations@accenture.com Corporate Communications News media and industry analysts may contact: Roxanne Taylor, Partner–Corporate Communications Accenture 1345 Avenue of the Americas, 18th Floor New York, NY 10105 Telephone: +1 917 452 5106 Fax: +1 917 527 5387 E-mail: roxanne.taylor@accenture.com Internet Address Major news releases and other information are available on Accenture’s website: www.accenture.com. Registrar and Transfer Agent Branch Transfer Agent: EquiServe Trust Company PO Box 43010 Providence, RI 02940 Bermuda Transfer Agent: Reid Management Ltd Hamilton, Bermuda Shareholder Services Accenture’s branch transfer agent, EquiServe, provides services to registered shareholders. EquiServe can be contacted in the following ways: EquiServe Trust Company PO Box 43010 Providence, RI 02940 Telephone: +1 781 575 3400 Website: www.equiserve.com Hearing-impaired shareholders with access to telecommunications device (TDD) can communicate directly with EquiServe by calling +1 800 952 9245. Shareholders residing outside the United States, Canada and Puerto Rico should call +1 781 575 3100. Annual Report on Form 10-K The Annual Report on Form 10-K for the year ended August 31, 2001, as filed with the U.S. Securities and Exchange Commission, is available without charge upon written request to Investor Relations. The Annual Report on Form 10-K can be viewed via the Internet at the Investor Relations section of Accenture’s website at: www.accenture.com. 35 About Accenture Accenture Accenture is the world's leading management and technology services organization. Through its network of businesses approach—in which the company enhances its consulting and outsourcing expertise through alliances, affiliated companies and other capabilities—Accenture delivers innova- tions that help clients across all industries quickly realize their visions. With more than 75,000 people in 47 countries, Accenture can quickly mobilize its broad and deep global resources to accelerate results for clients. The company has extensive experience in 18 industry groups in key business areas, including customer relationship management, supply chain management, business strategy, technology and outsourcing. Accenture also leverages its affiliates, alliances and venture capital activities to help drive innovative solutions. Strong relationships within this network of businesses extend Accenture's knowledge of emerging business models and products, enabling the company to provide its clients with the best possible tools, technologies and capabilities. Accenture uses these resources to serve as a catalyst, helping clients anticipate and gain value from business and technology change. Recognizing the important role of business in society, Accenture supports the active involvement of its people in community volunteer initiatives all around the world. The company also is involved in major projects where it can leverage its capabilities in cooperation with other businesses, governments and organizations to make a positive contribution to the communities in which it oper- ates. For example, Accenture is co-chairing the World Economic Forum task force on the digital divide and is taking a lead role in the G8 Digital Opportunities task force. Both initiatives seek to ensure that far more of the world's people are given the chance to benefit from the combination of entrepreneurship and new technology to create a virtuous circle of economic development. Accenture’s home page is www.accenture.com. 36 Accenture Technology Ventures Accenture Technology Ventures helps talented entrepreneurs build companies that can transform entire industries, create new markets and ulti- mately generate superior economic returns. Its portfolio includes innovative companies that are building key components of tomorrow's commerce infrastructure. Launched in December 1999, Accenture Technology Ventures is the venture capital unit of Accenture. Its home page is www.accenturetechventures.com. Forward-looking Statements and Certain Factors that May Affect Our Business—We have included in this report and in our Annual Report on Form 10-K filed with the SEC, forward-looking statements relating to our operations that are based on our current expectations, estimates and projections. Words such as “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are not guaran- tees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecast in these forward-looking statements. © 2001 Accenture. All rights reserved. Accenture and the Accenture logo are trademarks of Accenture and/or its affiliates in the United States and certain other countries. All other trademarks and registered trademarks mentioned in this document are the property of their respective owners. . d e l c y c e r e b n a c d n a r e p a p d e l c y c e r n o d e t n i r p s i 1 0 0 2 t r o p e R l a u n n A e r u t n e c c A e h T . s n o S & e c i R e g r o e G : g n i t n i r P . a t n a l t A / I A E : n g i s e D © 2001 Accenture All rights reserved. IX00000228 

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