Accenture Annual Report 2001

FY2001 Annual Report · Accenture

Loading PDF…

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

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?

Companies market their
innovations. Why can’t
countries?

Civil Service College, Singapore

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

You can’t build the store
of the future with
yesterday’s technology.

Sainsbury’s

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.

We can’t strike oil in the
back office. Wait a
minute, maybe we can.

BP Exploration, North Sea

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.

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.

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

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.

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

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

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.

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

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

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.”

Scott Thompson, Executive Vice President, Technology Solutions, Visa U.S.A., San Mateo County, California

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.”

Richard Yeo, Senior Executive, System Development, Civil Service College, Singapore

Sylvia Cheong, Senior Executive, System Development, Civil Service College, Singapore

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)

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,

Sainsbury’s, Chingford, Essex, England

Whether it’s your idea or Accenture’s...
It’s not how many ideas you have,

it’s how many you make happen.

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

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.

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.

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.

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

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

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

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.

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.

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

IX00000228