Accenture
Annual Report 2002

Plain-text annual report

No Time Like the Present Delivering Innovation to Create Value—Today Annual Report 2002 Structured to Deliver Innovation and Create Value Accenture collaborates with clients to help them realize their visions. We deliver innovation by helping clients identify and capitalize on areas with potential for maximum business impact. Accenture works with clients in nearly every major industry, and we hold ourselves accountable for creating tangible value. With more than 75,000 people in 47 countries, we can quickly mobilize the right people, skills, alliances, tools and technologies to deliver innovation. Industry-focused Operating Groups Our business is structured around five global operating groups, which together comprise 18 industry groups. Our industry focus enables our professionals to provide tailored consulting, technology and outsourcing services based on a solid understanding of industry evolution, business issues and applicable technologies. Communications & High Tech • Communications • Electronics & High Tech • Media & Entertainment Financial Services • Banking • Capital Markets • Health Services* • Insurance Government • Government *As of September 1, 2002, we began transitioning the Health Services indus- try group to the Products operating group in recognition of the increasing synergy between the health care and pharmaceuticals industries. Market-facing Structure Products • Automotive • Health Services* • Industrial Equipment • Pharmaceuticals & Medical Products • Retail & Consumer • Transportation & Travel Services Resources • Chemicals • Energy • Forest Products • Metals & Mining • Utilities The Innovation Engines Two capability groups, Business Consulting and Technology & Outsourcing, are the innovation engines through which Accenture develops and delivers a full spectrum of services and solutions. Together, these two groups comprise eight “service lines” and our “solution units.” Service lines are responsible for developing Accenture’s knowledge capital, world-class skills and innovative capabilities. Solution units (some of which are highlighted here) are responsible for creating, acquiring and managing scalable solutions that can be offered to multiple clients, often incorporating the capabilities of our service lines, affiliates and alliance partners. Accenture provides customized delivery, management and continuous improvement of business-critical processes through business process outsourcing ser- vices. Several of our solution units (highlighted here) provide enabling capabilities to this fast-growing area of our business. Communications & High Tech Financial Services Government Products Resources Business Consulting Service Lines and Solution Units Technology & Outsourcing Service Lines and Solution Units Affiliated Companies Global Strategic Delivery Approach Alliances Business Consulting Capability Group Service Lines Customer Relationship Management Helps increase the value of customer relationships by offering complete solutions to today's most complex sales, marketing and services challenges. Finance & Performance Management Helps senior finance executives identify critical issues, set strategic direction and deliver complex change successfully. Human Performance Helps solve human performance issues that are crucial to operational success. Strategy & Business Architecture Develops and implements strategies that unlock new sources of value. Supply Chain Management Helps develop and implement new operating models across the supply chain to improve clients’ cost posi- tion, customer service performance, asset productivity and competitive advantage. Solution Units Solution units that provide business process outsourcing services include: Accenture HR Services (an Accenture affiliate) Provides outsourced human resources services across the employee life cycle. Accenture Finance Solutions Provides outsourced transformational financial man- agement solutions. Accenture Learning Provides outsourced transformational learning solutions. Includes Indeliq, Inc., an Accenture affiliate that develops scalable performance simulation electronic learning applications. Technology & Outsourcing Capability Group Service Lines Technology Research & Innovation Researches, invents and commercializes cutting-edge business solutions. Includes Accenture Technology Labs, a dedicated technology research and development organization within Accenture. Solutions Engineering Designs, builds and deploys complex technology-based solutions. Solutions Operations (Outsourcing) Provides a range of outsourcing solutions for managing technology infrastructure, applications and business processes. Solution Units Avanade Inc. (an Accenture affiliate) Focuses on large-scale technology integration sur- rounding Microsoft’s enterprise platform. Accenture Technology Infrastructure Services Designs, develops and delivers the enabling infrastruc- ture services required for full-service transformational outsourcing. Industry-specific Affiliates Accenture forms new businesses, known as affiliates, to develop capabilities that the company does not already possess. Among our affiliates are the following: ALNOVA Provides a modular, core-banking software solution and related services to the financial services industry. Imagine Broadband Provides interactive broadband solutions and platform implementation to cable, satellite and telecommunica- tions network operators worldwide. Navitaire Inc. Provides airlines with reservations, ticketing and rev- enue management services. Global Strategic Delivery Approach Accenture’s global strategic delivery approach empha- sizes quality, reduced risk, speed to market and predictability. The ultimate goal: to deliver price- competitive solutions and services that create value. Our global network of delivery centers—facilities where teams of Accenture professionals use proven method- ologies and tools to create business solutions and develop long-term operational capabilities—enhances our ability to deliver results. Alliances Accenture has more than 100 alliances with estab- lished and early-stage technology companies whose capabilities complement our own, either by enhancing a service offering, delivering a new technology or help- ing extend Accenture services to new geographies. Alliances help Accenture deliver innovative solutions far faster than any company could do alone. Annual Report 2002 There is no time like the present. Accenture isn’t waiting for the next big thing to come along. We’re making a difference for our clients—and our shareholders—today. This year’s annual report explains how we are widening the gap between Accenture and traditional consulting firms by delivering innovation to help clients realize their visions and create tangible value. Applying the same principles to our own business, we have built a com- pany that is uniquely positioned to take advantage of the current economic environment and can deliver like no other company in the world. Accenture is the world’s leading management con- sulting and technology services company. With deep industry expertise, broad global resources and proven experience in consulting and outsourcing, we can mobilize the right people, skills, alliances and technologies. Please refer to the inside cover foldout for information on how Accenture is struc- tured to deliver innovation and create value. Contents Cover Foldout Accenture Capabilities . . . . . . . . . . . . Cover Foldout 4 Letter from the Chairman & CEO . . . . . . . . . . . . . 4 11 Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . 11 14 Approach to Creating Value . . . . . . . . . . . . . . . . . 14 19 Featured Client Stories . . . . . . . . . . . . . . . . . . . . . 19 32 Board of Directors and Executive Committee . . . . 32 34 Global Presence . . . . . . . . . . . . . . . . . . . . . . . . . . 34 35 Shareholder Information . . . . . . . . . . . . . . . . . . . . 35 36 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 2 0 0 2 © t h g i r y p o C We live in turbulent times. And business leaders are at the center of the storm. There is no time to wait. We must seek and enact innovative ways to create value today. Economic Conditions Customer Focus Regulatory Scrutiny Return to Core Competencies Business Leaders Earnings Pressures Mergers and Acquisitions Balance Sheet Focus Capital and Technology Spending 1 Accenture works with leaders to help them resolve some of their most challenging questions: 2 2 How do I reduce costs without reducing quality? How can I gain a competitive advantage in a commodity market? How can I meet my current performance goals without sacrificing future growth? How can we improve human performance while restructuring the company? What do we do if the economy doesn’t recover soon? Why aren’t we getting better results from our technology investments? How can I expand my business when my customers are consolidating? What if I have a great idea, but don’t have the resources to execute it? We help clients transcend today’s complex challenges and unlock new sources of value. We help clients make ideas—theirs and ours—happen. Anywhere in the world. 3 3 Joe W. Forehand, Chairman & CEO To Our Stakeholders: Value is the word I hear most often in my conver- sations with business and government leaders around the world. Spurred by the challenges of these difficult times, our clients are looking at every corner of their organizations for new ways to accelerate their visions and create tangible value. They are not waiting for the economy to improve. Nor is Accenture. We have used this period to enhance our business model and competitiveness, distinguish ourselves in our industry and optimize our business for continued profitable growth. The last year was not an easy one. But by focusing on the core elements that make Accenture a spe- cial company—namely, our people, clients and ability to deliver innovation—we achieved another year of industry-leading performance. Outperforming Our Industry Last year we defined four long-term financial objectives. The first is to grow revenue faster than the industry. Our fiscal 2002 revenues before reim- bursements were approximately $11.6 billion, an 4 increase of 1 percent in US dollars and 2 percent in local currency over the prior fiscal year. Although we aspire to achieve greater growth— and despite the worst economic environment in decades—we outperformed our industry at large. Our Government operating group deserves a spe- cial mention, having achieved 31 percent revenue growth for the year. Also, with our continued emphasis on combining consulting and outsourcing services to help businesses transform, our out- sourcing business grew 33 percent in fiscal 2002. Outsourcing was 23 percent of total revenue, up from 17 percent in the prior fiscal year. We achieved a record $16 billion in new bookings in fiscal 2002 (a 23 percent increase over the prior fiscal year), based in large part on new, multi-year agreements with clients such as Avaya, BellSouth, Caterpillar, Dow, EMC, KLM, Thomas Cook and the U.S. Department of Education. Much of this new work demonstrates our ability to bring ideas to clients proactively— a core element of our strategy. “Spurred by the challenges of these difficult times, our clients are looking at every corner of their organizations for new ways to accelerate their visions and create tangible value.” Our second and third long-term financial objec- tives are to expand operating margin by 50 to 100 basis points and grow earnings per share by 15 percent or higher. While we performed well in spite of the challenging economy, we did not meet these two objectives last year. We expanded our operating margin, excluding restructuring costs, by 20 basis points, despite sig- nificant pricing pressure. Our pro forma diluted earnings per share in fiscal 2002, excluding investment write-downs and restructuring costs in the fourth quarter, were $0.91, an increase of 7 percent over the prior fiscal year. Our fourth financial objective is to maintain key credit and cash flow ratios at levels superior to those of others in our industry. In fiscal 2002, we expanded our lead. Standard & Poor’s (S&P) assigned Accenture its “A+” corporate credit rating. We generated more than $1 billion in operating cash flow for the year, and our return on invested capital was 90 percent. In fact, our 90 percent return on invested capital ranks first against the companies in the S&P 100 (although Accenture is not part of the index). If one compares several of our other key financial metrics against the companies in the S&P 100, Accenture would rank third in return on assets, third in return on equity and eleventh in revenue growth. We are extremely proud of this performance. Looking ahead, we continue to be diligent about driving top-line growth, managing costs and preserving a strong cash position. Also, we are introducing EVA® (Economic Value Added) metrics into our business in fiscal 2003. Our current EVA margin of 9 percent of revenue is at the top of our industry. All in all, we delivered strong performance com- pared to our direct competitors, and our financial results compare favorably to those of other leading companies. I want to thank our people around the world for once again bringing their impressive tal- ents, energy and enthusiasm to their daily work. 5 Our people’s efforts to drive growth and help manage our business efficiently have made all the difference in our performance. Accenture’s Next Evolution Several marketplace events during the past 12 to 18 months have brought our industry to a critical inflection point: • Growth has slowed. • There are few new waves of technology innova- tion on the horizon to stimulate spending and drive growth beyond early adopters of technology. • The consolidation of service providers in our industry continues, as clients seek business part- ners that demonstrate global scale and financial strength. In true Accenture fashion, we approached these industry changes as a sign of opportunity for our business. During 2002, we transformed our business model to blend consulting and systems integration services—areas in which we have had broad expe- rience for decades—with outsourcing services. We provide a range of outsourcing solutions for manag- ing business processes, applications and technology 6 infrastructure. In addition, we are expanding our business process outsourcing capabilities in such areas as customer information, billing systems, information technology services, supply chain management and human resources administration. Our strategy is based on a unique combination of consulting, outsourcing and other capabilities that helps our clients achieve sustainable improve- ments in their business performance. We believe we have a differentiating approach to executing our strategy: We bring our industry value-creation capabilities together with our solutions, intellectual property and other capabilities to deliver measur- able value for our clients. We made several organizational changes to help unlock this future growth potential. We formalized several “solution units,” through which we develop scalable solutions that can be offered to multiple clients. Solution units—which are either Accenture affiliate companies or separate groups within Accenture—are responsible for creating and man- aging key assets that are central to our ability to deliver innovation to clients. Accenture’s Ranking Relative to S&P Indexes S&P 100 S&P 500 Return on Invested Capital 1-year return Return on Assets(1) 3-year average return Return on Equity(1) 3-year average return 1 3 3 4 9 5 (1) Pro Forma ROA would have ranked 11 on the S&P 100 and 44 on the S&P 500 and Pro Forma ROE would have ranked 5 on the S&P 100 and 11 on the S&P 500, assuming that the company had been in a corporate structure for the three-year period, adjusted for the effects of one-time events and costs associated with the company’s May 2001 transition to corporate structure and subsequent initial public offering. For example, Accenture HR Services provides effi- cient, secure, integrated human resources services across the employee life cycle through outsourced relationships with clients including BT, Cable & Wireless and our own organization. In certain industries, we have a long track record of success leveraging robust, repeatable solutions. For exam- ple, our ALNOVA banking solution (Alnova Financial Solutions) is being used at some of the world’s leading banks, including BankBoston, Barclays Bank and BBVA. To accelerate our strategy, we also combined our technology and outsourcing capabilities into one group (Technology & Outsourcing), which also has responsibility for our more than 100 alliances with technology companies. Furthermore, our dedicated technology research and development organization—Accenture Technology Labs—ensures our clients have access to cutting-edge business solutions using new and emerging technologies. In addition, a key element of our strategy is to build a more competitive systems integration and application management capability. Technology & Outsourcing is charged with aggressively expanding our global network of delivery centers as well as what we call our “solutions workforce” to help us lower our technology solutions delivery costs. We are able to provide our clients with the benefits of a highly skilled and cost-effective team of profes- sionals who reuse proven processes, methodologies and solutions. Overall, our strategic approach is to create a value proposition for a client and deliver on that value proposition by drawing on the many solutions and capabilities I have described. Where this really comes to life is through the experience and passion of our people who apply our capabilities to a client’s unique business situation. As such, we believe our long-term market opportunity is shaped not solely by information technology services spending; rather, it is shaped by organizations that want to enhance their business performance. This means we have the potential of reaching a much broader market than most of our competitors. 7 Pro Forma Diluted Earnings Per Share Excluding Net Gains or Losses on Investments, and Rebranding, Reorganization and Restructuring Costs, Net of Taxes $0.85 $0.91 $0.62 2000 2001 2002 Putting Our Clients and People First Like most companies during 2002, Accenture faced challenging economic conditions in many parts of our business, and we had to reduce our costs in several areas to ensure we preserve our market leadership and financial strength. Yet, we continue to believe that putting our clients and people first is the surest way for us to create value for all of our shareholders. We are proud of our enduring client relationships. We now serve 92 of the Fortune Global 100 and nearly two-thirds of the Fortune Global 500. Also, 92 of our top 100 clients last fiscal year (based on revenue) have been clients for at least five years, and 66 have been clients for at least 10 years. Our clients and people collaborate to create and deliver on great ideas—some of which are described in this report. We also take pride in being a company whose more than 75,000 people are aligned by a com- mon vision and by six core values, which have guided us for more than 10 years: client value 8 creation, one global network, best people, respect for the individual, integrity and stewardship. Employee ownership is another important aspect of our culture. I am proud of the fact that since our initial public offering in July 2001, most of our people have received an ownership interest in Accenture. Also, about 50 percent of our people have chosen to take advantage of our employee share purchase program. Our board of directors approved the creation of a share employee com- pensation trust (SECT) that will acquire Accenture shares to be used to provide select Accenture employee benefits, such as equity awards to future partners. Our board authorized $300 mil- lion in funding for the SECT, which has applied $221 million to these repurchases through August 31, 2002. Our common vision and values help us serve clients consistently around the world. We are able to leverage our global scale, while also allowing local cultures and needs to thrive. We have a sin- gle global brand that is embodied by our people and the promise of quality in our work. We are Worldwide Revenues Before Reimbursements US Dollars in Millions Years Ended August 31 Compound Annual Growth Rate 1989-2002=17.4% $11,574 $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 2002 proud that just two years after the launch of our new name, Accenture is ranked the 53rd most valuable brand, according to BusinessWeek’s rank- ing of the top 100 global brands. A key priority last year was investing in the leader- ship development of our people. In addition to creating a chief leadership officer position, we developed the Accenture Leadership Statement, which defines the leadership traits we aspire to achieve as an organization. It is being used as a basis for performance evaluations and career management decisions. We also designed an intensive leadership develop- ment program, in which more than 700 of our newest partners already have participated. We will soon roll out these concepts to all executive levels to help ensure that a “leaders teaching leaders” culture permeates our organization. Although eco- nomic conditions last year caused us to cut back on spending for most training programs, we used this time to develop new training curricula. We will spend an additional $100 million on training for our people in fiscal 2003. To better support our clients, last year we estab- lished an Office of the CEO comprising Steve James, who is our chief operating officer, and me. Steve and I now share responsibility for group performance and global operations, and we both regularly support our client relationships. Accenture also continues to focus on being a good corporate citizen. At the 2002 World Economic Forum, I signed a joint statement with 35 other CEOs that provides a blueprint for making corporate citizenship part of the way business is conducted. Our philosophy in this area is to leverage our core strengths as a company as well as our people’s skills to build positive relationships with all of our stakeholders and create powerful, lasting change. From our involvement in initiatives like the G8 Digital Opportunities Task Force, the volunteer efforts of our people and the responsible service we provide clients, being a good corporate citizen is inherent in the way we do business. In putting clients and people first, we also take business ethics, corporate governance and trans- parency of operations very seriously. Our Ethics 9 Stephan A. James, Chief Operating Officer, and Joe W. Forehand, Chairman & CEO and Compliance program, led by our general counsel, fosters the highest ethical standards among our people. The program encompasses our Code of Business Ethics and aims to ensure that everyone at Accenture acts in the best interests of our company, clients and shareholders at all times. We also created a senior management position of chief risk officer. Through these and other efforts in conjunction with our board of directors, Accenture is committed to the principles of business ethics, full and fair disclosure and compliance with the law. For example, in August, Harry You, our CFO, and I certified the accuracy of our prior financial statements even though we were not required to do so. Accenture wants to be part of the solution to restore investor confidence in business. A Winning Future Today’s economy demands that we do more with less. Although our business is not immune to continued economic and geopolitical uncertainty, it is resilient. We have an unwavering commit- ment to maintain our market leadership and financial strength. 10 We will continue to draw upon the advantages of our broad global resources and deep industry expertise to deliver innovation to clients, and we hold ourselves accountable for creating tangible value. Above all, we will continue to put our clients and people first…this is the best way we know to create long-term shareholder value. I spend time with thousands of Accenture employees each year, and I see in their eyes opti- mism and a can-do spirit. Even though the current environment has put their resolve to the test, Accenture people are winners. And there is no time like the present for us to be ahead of our industry, delivering innovation to create value for clients and winning in the marketplace—for all of our stakeholders. Joe W. Forehand Chairman & CEO December 16, 2002 Financial Highlights Revenues Before Reimbursements by Operating Group Communications & High Tech Financial Services Government Products Resources Other Total Revenues Before Reimbursements by Geographic Area Americas EMEA(2) Asia Pacific Total Consulting and Outsourcing Revenues 2002 Percent Change Percent 2001(1) Change 2000(1) $ 3,182 2,621 1,316 2,441 2,005 9 $ 11,574 (2)% (9) 31 4 4 (51) 1% $ 3,238 2,894 1,003 2,357 1,933 19 $ 11,444 15% 14 26 22 16 39 17% $ 2,806 2,542 797 1,932 1,661 14 $ 9,752 2002 Percent Change Percent 2001(1) Change 2000(1) $ 5,836 4,963 775 $ 11,574 (5)% 11 (8) 1% $ 6,113 4,484 847 $ 11,444 17% 21 4 17% $ 5,223 3,714 815 $ 9,752 Percent of Total Revenues Percent Growth Consulting Outsourcing Consulting Outsourcing 16% 17% 23% 84% 83% 77% 100 80 60 40 20 0 35 30 25 20 15 10 5 0 -5 -10 9% 1% 33% 28% 15% -7% 2000 2001(3) 2002(3) 2000 2001 2002 Notes: (1) Revenues have been restated to conform with current-year presentation. (2) EMEA includes Europe, Middle East and Africa. (3) Consulting revenues include consolidated affiliate revenues. US dollar amounts in millions for the years ended August 31, 2000-2002. All amounts throughout this annual report are stated in US dollars except where noted. 11 Consolidated Income Statement and Consolidated Pro Forma Income Statement Consolidated Income Statement 2002 Percent of Net Revenues Consolidated Pro Forma Income Statement 2001(1) Percent of Net Revenues Revenues: Revenues before reimbursements (net revenues) $ 11,574 Reimbursements Revenues Operating Expenses: Cost of Services: Cost of services before reimbursable expenses Reimbursable expenses Cost of services Sales and marketing General and administrative costs Restructuring costs Total operating expenses Operating Income Gain (loss) on investments, net(2) Interest, net Other income (expense) Equity in losses of affiliates Income Before Taxes Provision for taxes Income Before Minority Interest Minority interest Net Income Earnings Per Share: Basic Diluted 1,531 13,105 6,897 1,531 8,428 1,566 1,616 111 11,720 1,385 (321) (3) 15 (9) 1,068 (491) 576 (332) $ 245 $ $ 0.57 0.56 100% 13 113 60 13 73 14 14 1 101 12.0 (3) 0 0 0 9 4 5 (3) 2% 100% 14 114 61 14 75 13 14 0 101 12.7 1 0 0 (1) 13 5 8 (5) 3% $ 11,444 1,618 13,062 6,925 1,618 8,543 1,507 1,560 – 11,610 1,452 107 21 17 (61) 1,536 614 922 (545) $ 377 $ $ 0.91 0.91 Operating Income Adjusted To Exclude 2002 Restructuring Costs Operating Income as Reported Add Back: Restructuring costs Adjusted Operating Income $ 1,385 111 $ 1,496 12.9% $ 1,452 12.7% Earnings Per Share Adjusted To Exclude 2002 Restructuring Costs and Loss (Gain) on Investments, Net Income Before Minority Interest as Reported Add Back: Restructuring costs, net of tax Add Back: Loss (gain) on investments, net of tax Adjusted Income Before Minority Interest Adjusted Earnings Per Share: Basic Diluted Weighted Average Shares: Basic Diluted 12 $ $ $ $ 576 69 284 929 0.93 0.91 $ 922 – (64) 858 0.85 0.85 $ $ $ 425,941,809 1,023,789,546 412,705,954 1,008,163,290 Consolidated Balance Sheets Assets Current Assets: Cash and cash equivalents Restricted cash (3) Receivables from clients, net 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 revenue 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 August 31, 2002 August 31, 2001 $ 1,317 $ 1,880 79 1,331 774 560 4,061 76 717 625 1,418 $ 5,479 $ 63 450 544 1,140 1,130 3,327 3 1,191 1,194 519 - 1,499 732 469 4,580 324 822 335 1,481 $ 6,061 $ 191 372 810 1,050 1,756 4,179 1 1,191 1,192 408 Shareholders’ Equity Total Liabilities and Shareholders’ Equity 439 $ 5,479 282 $ 6,061 Notes: (1) Assumes Accenture’s incorporation for the full fiscal year and eliminates the effects of one-time events and costs associated with Accenture’s May 2001 incorporation and subsequent initial public offering. (2) The 2002 net loss on investments includes a charge for the anticipated loss on the disposal of substantially all our minority ownership interests in our venture and investment portfolio. (3) Restricted cash represents cash available to the Accenture Share Employee Compensation Trust for share repurchases that will be used to fund equity-based awards for Accenture employees. US dollar amounts in millions for the years ended August 31, 2002 and 2001 except share and per-share data. 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, 2002, including financial statements and auditor’s report, can be viewed via the Internet at the Investor Relations section of our website at: www.accenture.com. 13 How do you find value? Accenture employees: Lynn Um, New York (left) Marcius Machado, Rio de Janeiro (right) 14 How do you unleash it? First, you need to know where to look. Sometimes the answer is obvious. Other times value might be hidden in pockets throughout an organization. By applying our broad experience, we can help identify areas of greatest potential impact that often are obscured from view. For eBay, the value was fueling growth by creating a new service for enterprises to sell on the World’s Online Marketplace.TM For Toshiba, it was building a global supply chain management system to increase supply chain visi- bility and reduce delivery lead time. For Exel, it was outsourcing the logistics company’s finance and administration function so manage- ment could drive growth. For UniCredito Italiano, it was accelerating growth by launching new specialty banks in Italy and expanding into new countries. For Rhodia, it was outsourcing the global chemical company’s European finance processes to improve performance and reduce costs. For the U.S. Defense Logistics Agency, it was building a world-class supply chain to lower costs and better meet customer needs. For Sankyo, a major pharmaceuticals company, it was improving operating efficiency to generate cash, maintain profitability, and boost research and development. For Siemens Power Generation, it was increasing profitability by helping the company deliver parts and services to customers faster. For Thames Water, it was outsourcing logistics and procurement to save money, increase efficiency and fuel international growth. For Washington Mutual, it was reducing loan approvals from days to minutes, contributing to dramatic mortgage-loan growth. For the World Bank, it was helping to establish a virtual university, increasing access to much- needed engineering classes across Africa. 15 Why Accenture? Why now? Accenture’s two capability groups— our innovation engines—are led by Gregg Hartemayer (left), Group Chief Executive–Technology & Outsourcing, and Tim Breene (right), Group Chief Executive–Business Consulting. 161616 Consulting. Technology. Outsourcing. It often takes all three to solve today’s complex business challenges. Accenture integrates these capabilities like no other company in the world—enabling us to deliver innovation at unparalleled speed. Our breadth of resources and expe- rience, combined with our strategic alliances, enable us to provide a nearly unlimited range of services to help enhance business performance. Through business process outsourcing, we enable organi- zations to achieve tactical and strategic aims as well as save money by outsourcing select business processes or functions. Working closely with our clients, we leverage highly specialized solution units and our global network of delivery centers to deliver tangible results swiftly and at the right cost. Our capabilities are global. Our track record is proven. Our passion is relentless. For business leaders worldwide, the difference is Accenture. 17 We listen. We collaborate. And we hold ourselves accountable for results. 18 Every industry is different. Every client is unique. And so are our solutions. Our deep industry expertise enables us to capture value and deliver innovation for a broad range of organizations every day. On the following pages, we share the distinctive stories of several clients along with the market perspectives of our five operating group leaders. Client Stories Avaya . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 BT Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Siam Cement PLC . . . . . . . . . . . . . . . . . . . . . . . 22 North American Utilities Industry . . . . . . . . . . . 23 Australian Taxation Office . . . . . . . . . . . . . . . . . 24 Spanish General Treasury of Social Security . . . 24 Volvo Construction Equipment . . . . . . . . . . . . . 26 Thomas Cook AG . . . . . . . . . . . . . . . . . . . . . . . . 27 AGF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Depository Trust & Clearing Corporation . . . . . . 28 19 Avaya Outsourcing Enhances Learning Function, Speeds New Products to Market What was the value opportunity? Avaya designs, builds and manages communications networks for more than a million businesses world- wide, including 90 percent of the Fortune 500. A technology innovator, Avaya sought to expand its leadership through the rapid introduction of new Internet-protocol (IP) telephony solutions to enterprise customers in business, education and government. What challenges did Avaya face? Avaya had the technical expertise to bring IP telephony to market. To capture the opportunity, Avaya faced heavy training demands associated with an accelerated new-product introduction, and wanted to upgrade its training capabilities quickly without raising its costs. What did Accenture bring to the table? Avaya chose to outsource its learning function to Accenture. Working together, we devised a three-part program to totally transform learning capabilities within Avaya, including a process to align learning investments to the company’s busi- ness strategy. Under a multi-year agreement, Accenture assumed management of Avaya University and is now responsible for more than 1,800 product, technical and business courses for Avaya employees, customers and channel partners in more than 90 countries. Increasingly these courses are delivered via innovative eLearning technologies in virtual classrooms, supplemented by classroom- and laboratory-based training. What results did Avaya achieve? Avaya’s new learning capabilities enabled it to sup- port the release of new communications products. eLearning methods have increased user satisfaction, while decreasing out-of-office time and travel expenses. In some critical learning areas, users have reduced their “time to proficiency” by as much as 63 percent. BT Group Innovative Learning Solution Cuts Training Time and Costs, Doubles Sales What was the value opportunity? BT Group is one of the world’s leading providers of telecommunications services. Among the company’s seven strategic priorities is to put broadband at the heart of BT and expand its markets for Internet-based services. BT employees to simulate actual sales situations and to learn from real-time feedback. In addition to increasing BT employees’ Web knowledge, this continuing series of interactive courses has enabled the company to launch new consumer and business products at great speed. What challenges did BT face? Many of BT’s employees had limited Internet expe- rience, and fewer than one-third had confidence in talking with customers about new Web-based communications solutions. The company needed to solve the problem fast and establish an ongoing and cost-efficient means for training employees as it rolls out new broadband capabilities. What did Accenture bring to the table? Accenture Learning is a world leader in developing innovative learning solutions. Leveraging this exper- tise, we created a Web-based training solution for BT called eXperience. The proprietary solution, based in part on Accenture’s patented technology, allows 20 What results did BT achieve? More than 18,000 BT employees completed initial eXperience training in only 20 weeks, tripling con- fidence scores. Since then, the innovative learning program has reduced the time for employees to master new sales skills from 45 days to only five days. Results contribute to sales conversion rates that have doubled for some products and to cus- tomer satisfaction scores that have soared by as much as 16 points. “Accenture has really helped us develop in this area,” said Danny McLaughlin, managing director of BT Major Business. “This has been a superb approach to reaching our sales people at scale and at speed.” “Our clients are under pressure from all sides—from surviving the turmoil in the industry to regaining investor trust. Many are struggling to improve customer loyalty and differentiate their offerings in the face of relentless competition. Companies need to find new ways to leverage assets, satisfy customers and drive new revenues—or risk extinction.” William Green, Group Chief Executive Communications & High Tech 21 Mary Tolan, Group Chief Executive Resources Siam Cement PLC Joint Venture Helps Largest Thai Industrial Conglomerate Refocus Business What was the value opportunity? Following the Asian financial crisis of the late 1990s, Siam Cement PLC decided to refocus on three core businesses: cement and building mate- rials, paper and packaging, and petrochemicals. To reemerge as one of Southeast Asia’s prominent business leaders, the company sought to make fundamental changes to its business, including aggressively divesting non-core businesses. What challenges did Siam Cement face? Facing more than $1 billion in foreign-exchange losses and $4.5 billion in foreign debt, Siam Cement needed to make fundamental changes to how it did business to regain stability and increase prof- itability. Improving its information technology systems and outsourcing this non-core activity were important priorities. What did Accenture bring to the table? Accenture teamed up with Siam Cement to form IT One, a 50-50 joint venture responsible for 22 providing the industrial giant with world-class information technology capabilities without increasing its costs. Combining Accenture’s global consulting and technology expertise with Siam Cement’s strong management, IT One has moved swiftly to implement 10 key initiatives, including building a leading-edge eCommerce infrastructure for Siam Cement’s customers and suppliers. What results did Siam Cement achieve? By refocusing its operations and deleveraging its balance sheet, Siam Cement has overcome adversity and is leading the way forward. IT One has con- tributed to these efforts by helping the company to accelerate its supply chain, enhance product delivery and service, and provide fast, efficient online ordering and inventory management to customers. Significantly, IT One has upgraded these capabilities while reducing Siam Cement’s information technology operating costs by 15 to 20 percent on a per-user basis. "Our clients in the energy, utilities, chem- icals and natural resources industries are contending with cyclical market pressures including excess capacity, declining prices and deregulation. Beyond effectively managing in a down- turn, these leaders must invest capital wisely to drive growth and shareholder value today and for the long term." North American Utilities Industry CustomerWorks Helps Pressured Utilities Increase Cash Flow, Reduce Risk What is the value opportunity? Once a safe harbor for conservative investors, the North American utilities industry has suffered great volatility in recent years, as companies struggle with deregulation, global competition and other issues. Seeking to restore stable growth, manage- ment is focused on finding new low-risk ways to increase earnings and recurring free cash flow. What challenges do North American utilities face? The utilities industry is diverse and highly frag- mented. Most companies do not have the scale or resources needed to meaningfully reduce their oper- ating costs without disrupting service or degrading quality. Customer service, a growing cost center for most utilities, is among the biggest challenges. What does Accenture bring to the table? Serving more than 80 percent of the world’s largest utilities companies, Accenture is the largest business services provider for the North American utilities industry. Applying this experience, we formed CustomerWorks Inc. in July 2002, a wholly owned subsidiary that enables utilities companies to outsource their customer service functions, creating immediate savings and recurring value. Managed in partnership with Accenture clients BC Gas Inc. and Enbridge Inc., CustomerWorks serves more than 3.5 million of these utilities’ customers throughout Canada. What results are North American utilities achieving? By outsourcing customer service to CustomerWorks, utilities companies leverage Accenture’s scale, expe- rience and technology. Interest in CustomerWorks among additional utilities companies is high, as companies seek proven, dependable means of reducing costs and bolstering earnings, while gain- ing access to a broad spectrum of new technologies and customer service capabilities in a rapidly changing market. 23 Australian Taxation Office Streamlined System Cuts Registration Time from 15 Days to 15 Minutes What was the value opportunity? Through a series of reforms, the Australian govern- ment is improving efficiency and strengthening its relationships with businesses. To contribute to this goal, the Australian Taxation Office (ATO) set out to create a new electronic system designed to dramat- ically reduce business registration time and increase information sharing across all levels of government. business registration system called the Australian Business Register. Built upon Microsoft’s Web- based .NET technology platform, the system enables Australian business owners to register or update information through a simple process over the Internet and provides a single and accurate source of business information to all of Australia’s federal, state and local government organizations. What challenges did the Australian Taxation Office face? The ATO needed to reengineer its registration ser- vices around the changing needs of businesses, rather than the government’s processes. It would not be easy, given that many agency functions were still done through costly and time-consuming paper transactions, often requiring weeks to process. What did Accenture bring to the table? Working with our affiliate Avanade and alliance partner Microsoft, Accenture collaborated with the ATO to create a new, easy-to-use electronic What results did the Australian Taxation Office achieve? “Accenture has helped us reduce the average time to register a business from 15 days to as little as 15 minutes,” said Greg Dark, ATO assistant com- missioner. “Less than a year after its launch, nearly 80 percent of all new business owners have chosen to use our new electronic system. The program enables us to provide more and better services to Australian businesses, eliminates red tape and provides a proven platform for future advances.” Spanish General Treasury of Social Security Creating the Social Security System of the Future What was the value opportunity? Since being elected prime minister of Spain in 1996, José María Aznar has focused on improving public services throughout the country while decreasing taxpayer costs. Among his biggest tar- gets was improving Spanish Social Security. What challenges did the Spanish General Treasury of Social Security face? General Director Francisco Gomez Ferreiro headed the government’s effort to create “the Social Security system of the future.” A big challenge: The administration’s paper-driven processes were slow and complex to manage, hindering efficient service to citizens and employers. What did Accenture bring to the table? Collaborating with Accenture, the General Treasury of Social Security launched the Remote Electronic Data (RED) system, an advanced eCommerce solu- tion that enables companies to exchange important employee benefits information with Spanish Social 24 Security electronically. With information transmitted computer to computer, data no longer has to be reentered, saving time and eliminating costly errors. In addition to designing and implementing RED’s technology, Accenture worked with employers throughout Spain to ensure that the new electronic processes were adopted efficiently. What results did the General Treasury of Social Security achieve? More than 35,000 employers, representing 90 per- cent of Spain’s workforce, have adopted the new electronic system. With around-the-clock access, the system makes it significantly easier for compa- nies to work with the Social Security administration and speeds turnaround times for claims. Government administrators now have instant access to informa- tion that previously took months to retrieve. Widely applauded, the system is generating millions of dollars in direct and indirect savings for Spanish taxpayers annually. “Government leaders are in a bind, trapped between mounting needs and falling revenues. Issues from national security to caring for aging populations are transforming surpluses into deficits, and the pressure is only building. We’re helping these leaders deliver more ser- vices for less cost, capturing untapped value for taxpayers.” David Hunter, Group Chief Executive Government 25 Mark Foster, Group Chief Executive Products Volvo Construction Equipment eBusiness Launch Clears Path for Volvo CE’s Global Expansion What was the value opportunity? Volvo Construction Equipment aims to become the No. 2 player in the global construction equipment business. To support its growth plan, Belgium-based Volvo CE needed to vastly improve its dealer and customer communications, strengthening its bond with both groups. What challenges did Volvo CE face? Dealers and customers deeply value Volvo CE’s equipment. But they wanted an easier way to do business with the company. For example, dealers often had to contact different divisions to obtain information about multiple products. Accenture worked with Volvo CE to help the company break the bottleneck, save money and accelerate its growth through an aggressive eBusiness strategy. What did Accenture bring to the table? Combining our global supply chain and customer relationship management expertise with the eBusiness technology of alliance partners Click 26 Commerce and Vignette, we helped Volvo CE launch a new Web-based dealer portal in only six months. Dealers all over the world can now find the up-to-date information they need, order parts and equipment, and manage other critical func- tions online. We also helped Volvo CE launch a new consumer website, enabling buyers to locate dealers and request product information and price quotes over the Internet. What results did Volvo CE achieve? Through an evolving eBusiness strategy, Accenture is helping Volvo CE change the way it does business around the world. Launched in August 2001, the dealer portal was an immediate success, providing its dealers with one consistent global communica- tion channel into all of Volvo CE’s divisions. Dealer satisfaction has increased substantially, and the new system is projected to help the company save more than $20 million over the next five years. “Consumers and business customers are still buying products and services that offer unique benefits and value. To remain competitive, companies must find new ways to deliver these innovations while lowering costs. Manufacturers, retailers and service providers can’t play the me-too game. They must differentiate.” Thomas Cook AG Shared Services Center Transforms Travel Operations, Reduces Costs What was the value opportunity? UK travel company Thomas Cook had a sterling reputation and wanted to bring its internal capa- bilities up to the same standard. Germany-based C&N Touristic AG acquired Thomas Cook in 2001, seeking to increase profits by improving the com- pany’s operating efficiency. What challenges did Thomas Cook face? Under the new ownership of C&N Touristic— which renamed itself Thomas Cook AG—the UK management team enacted a far-reaching busi- ness transformation program to reduce costs and optimize revenues. Among its challenges: Many of Thomas Cook’s operating functions in the United Kingdom were spread across multiple divisions and offices, with much work being done in triplicate. What did Accenture bring to the table? Through an innovative co-sourcing (or shared management) agreement with Accenture, Thomas Cook UK was able to restructure its operations to eliminate costly inefficiencies. Accenture created and took charge of a shared services center, build- ing an integrated SAP platform to consolidate UK finance, payroll, information technology, human resource administration and project deliv- ery functions under one roof. Thomas Cook UK’s management maintains full control of the shared service center’s strategy, procurement, policy set- ting and critical decision making, while Accenture has responsibility for all operational activities. What results did Thomas Cook achieve? Thomas Cook UK has been able to improve opera- tions, reduce its cost base and increase profitability in less than one year. The company’s transformation program continues to proceed on schedule, with Accenture playing a key role as the co-sourcing partner. Both companies share equally in the risks and rewards of the partnership by linking Accenture’s compensation to helping Thomas Cook UK attain specific financial results. 27 AGF Transformation Plan Smooths Complex Merger, Unifying Operations What was the value opportunity? Allianz, the world’s largest insurance group, acquired Assurances Generales de France. Rather than operating as separate companies in France, Allianz sought to converge the businesses under the AGF brand. What challenges did AGF face? Merging operations would be enormously complex, requiring AGF to integrate 18 different businesses, all with vastly different people, processes and products. What did Accenture bring to the table? Working closely as a team, AGF and Accenture developed a transformation plan to unite the best products, processes and systems from among the merging companies into a single organization. Accenture provided support at all levels to ensure a successful convergence, including the integration of more than 36 different information technology systems inherited through the acquisition. We also created an innovative interactive learning program to train more than 2,000 agents and brokers to sell AGF’s new product portfolio and to help unify the company’s culture. What results did AGF achieve? Through our joint efforts, AGF has achieved its goal of operating with one common brand, one collection of products and one set of processes companywide. A complex portfolio of 1,500 dis- parate products has been vastly simplified to fewer than 150 products. More than three dozen technology systems have been reduced to one or two for each major business line. AGF and Accenture continue to work together to uncover new value opportunities—from expanding AGF’s life insurance business to building new systems and processes to speed financial reporting. Depository Trust & Clearing Corporation Co-sourcing Pact Transforms Technology Development What was the value opportunity? The Depository Trust & Clearing Corporation (DTCC) supports the NYSE, Nasdaq, Amex and other exchanges in the post-trade clearance and settlement of virtually all equities, corporate and municipal debt, and many other securities trans- actions in the United States. To build upon this leadership, the company needed to transform its technology systems and capabilities without increasing its costs. What challenges did DTCC face? The financial services industry is changing rapidly. DTCC needed to operate with greater speed, inno- vation and cost-efficiency to stay ahead of these trends and to continue providing the best possible service to its customers. What did Accenture bring to the table? Through a major business transformation co-sourcing (or shared management) agreement, DTCC formed DTCC Solutions—a singularly focused 28 technology team—leveraging Accenture’s unique process and project management capabilities with DTCC’s application development team. Their com- bined expertise has empowered the teams to more effectively complete multiple and simultaneous technology initiatives, on time and on budget— while upholding the reputation DTCC has earned for quality, reliability and excellence. What results is DTCC achieving? “It’s not enough to merely keep pace with change. We want to anticipate and lead change,” said Donald F. Donahue, DTCC managing director, Customer Marketing and Development. “Through our alliance with Accenture, we are dramatically transforming our technology development to sus- tain our ‘gold standard’ for quality and technical reliability, while being nimble and quick to market with new technology solutions.” “Global financial services leaders face harsh realities: increased regulatory scrutiny, price-driven competition, shrinking margins and market consolida- tion. To succeed, these companies must stake out differentiated competitive positions while dramatically reengineer- ing their cost structures to compete in this environment.” Karl-Heinz Flöther, Group Chief Executive Financial Services 29 We think, work and act as one. Every company will tell you that its people make the difference. But there’s far more to it than that. You need the right people, in the right places, with the right skills to get the job done. Accenture makes it happen every day. We’ve built an unbeatable team of people from a wide range of cultural, educational and geographic back- grounds who work together as one, without boundaries or limitations. Our people are some of the most creative, forward- thinking people in the business world. United by a common vision, their collective talents enable Accenture to deliver innovation consistently, even in the face of immeasurable challenges. 30 Accenture employee: Stephanie Woodruff-Hale, Atlanta Accenture employees: Ryan Tang, Phoenix (left) Costi Karayannis, London (right) 31 Board of Directors Executive Committee Kedrick D. Adkins Chief Diversity Officer Detroit Raúl E. Alvarado Managing Partner- Communications & High Tech, Business Operations Los Angeles Arnaud André* Managing Partner- Leadership Development Paris Jorge L. Benitez Managing Partner- Partner Matters Miami Tim Breene* Group Chief Executive- Business Consulting and Chief Strategy Officer Boston David Clinton Managing Partner-Accenture HR Services London Martin I. Cole Managing Partner- Outsourcing & Infrastructure Delivery Hartford Joellin Comerford Managing Partner-Corporate Development, Americas New York William C. Copacino Managing Partner-Supply Chain Management Boston Pamela J. Craig* Managing Partner-Global Business Operations & Services New York Kevin Carnahan Managing Partner-Financial Services, Core Europe Frankfurt Etienne H. Deffarges Managing Partner-Resources, North America, Mid Cap San Francisco Gianfranco Casati Managing Partner-Products, Europe; Geographic Council Chair-Italy, Greece, Central and Eastern Europe, Middle East and Country Managing Director-Italy Milan Cherine Chalaby Managing Partner-Corporate Development, Europe London Lai Yong Chee Managing Partner-North Asia and Geographic Council Chair- North Asia Beijing Yew Chye Ching Managing Partner-South East Asia and Geographic Council Chair-South East Asia Kuala Lumpur Juan Domènech Managing Partner- Government, Europe, Latin America, Africa Barcelona Robert N. Duelks Managing Partner-Financial Services, North America New York Vernon J. Ellis International Chairman London Eddy J. Fikse Managing Partner-Resources, North America, Large Cap Dallas Karl-Heinz Flöther* Group Chief Executive- Financial Services Frankfurt Masakatsu Mori 3 Country Managing Director- Japan Accenture Diego Visconti Managing Partner- Communications & High Tech, Europe and Latin America Accenture Wulf von Schimmelmann 1, 3 Chief Executive Officer Deutsche Postbank AG Jackson L. Wilson, Jr. Corporate Development Officer Accenture 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 Group Chief Executive- Financial Services Accenture Joel P. Friedman 3 Partner-Corporate Development Accenture William D. Green 2 Group Chief Executive- Communications & High Tech and Country Managing Director-United States Accenture Stephan A. James Chief Operating Officer Accenture Robert I. Lipp 1 Chairman and Chief Executive Officer Travelers Property Casualty Co. Blythe J. McGarvie 1 Executive Vice President and Chief Financial Officer BIC Group Sir Mark Moody-Stuart 2, 3 Former Chairman of the Committee of Managing Directors, Royal Dutch/Shell Group of Companies; Former Chairman, The Shell Transport and Trading Company 1 Audit Committee, 2 Compensation Committee, 3 Nominating & Governance Committee 32 Joe W. Forehand* Chairman & CEO Dallas Mark Foster* Group Chief Executive- Products London John G. Freeland Managing Partner-Customer Relationship Management New York Robert N. Frerichs Managing Partner and Market Maker- Communications & High Tech Los Angeles Joel P. Friedman Partner-Corporate Development San Francisco Benoît Génuini Managing Partner-Resources, France; Geographic Council Chair-France, Netherlands, Belgium, Luxembourg and Country Managing Director- France Paris Richard J. Golden Managing Partner-Office of the CEO Boston William D. Green* Group Chief Executive- Communications & High Tech and Country Managing Director-United States Boston James Hall Managing Partner-Technology & Research London F. Edwin Harbach Managing Partner-Japan and Geographic Council Chair- Japan Tokyo Jon Harrington Managing Partner- Communications & High Tech, United States, East and Canada New York Gregg G. Hartemayer* Group Chief Executive- Technology & Outsourcing Chicago David L. Hill Managing Partner-Products, Consumer & Industrial, North America Chicago David R. Hunter* Group Chief Executive- Government and Managing Partner-Asia Pacific Sydney Roger Ingold Managing Partner-Products, Latin America and Geographic Council Chair-Latin America São Paulo Stephan A. James* Chief Operating Officer Dallas Thomas Köhler Geographic Council Chair- Austria, Switzerland, Germany and Country Managing Director- Germany Frankfurt Robert K. Laity Partner-Resources, Growth & Strategy Philadelphia José Luis Manzanares* Managing Partner-Global Technology Solutions and Alliances Madrid Michael J. May Managing Partner-Strategy & Business Architecture and Managing Partner- Thought Leadership New York Michael G. McGrath* Chief Risk Officer Palo Alto Carol E. Meyer Partner-Investor Relations New York David Milner Managing Partner and Market Maker-Financial Services London Masakatsu Mori Country Managing Director- Japan Tokyo William F. Morris Geographic Council Chair- Canada Montreal James E. Murphy Global Managing Director- Marketing & Communications New York David B. Rich Managing Partner- Communications & High Tech, United States, West Dallas Gill Rider* Chief Leadership Officer London Stephen J. Rohleder Managing Partner- Government, United States Washington, D.C. Edward M. Schreck Chief Information Officer Chicago Douglas G. Scrivner* General Counsel and Secretary Palo Alto Markku Silén Managing Partner- Communications & High Tech, Nordic and Geographic Council Chair-Nordic Helsinki Thomas J. Skelly Geographic Council Chair- United States Chicago Thomas K. Spann Managing Partner-Products, Health & Life Sciences, North America Philadelphia David C. Thomlinson Managing Partner-Resources, Europe, Middle East, Africa, Latin America London Mary A. Tolan* Group Chief Executive- Resources Chicago Carlos Vidal* Managing Partner-Financial Services, South Europe, Eastern Europe, Middle East, United Kingdom, Africa, Latin America; Geographic Council Chair-Spain, Portugal, Africa and Country Managing Director-Spain Madrid Diego Visconti Managing Partner- Communications & High Tech, Europe, Latin America Milan Ian Watmore Geographic Council Chair- United Kingdom, Ireland and Country Managing Director- United Kingdom Manchester Jackson L. Wilson, Jr.* Corporate Development Officer Dallas Harry L. You* Chief Financial Officer Dallas * Also a member of the Management Committee and an Executive Officer of Accenture 33 Global Presence Americas Argentina Bermuda Brazil Asia Pacific Australia India Indonesia Japan Korea Europe, Middle East, Africa Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Ireland 34 Canada Chile Colombia Mexico United States Venezuela Taiwan Thailand Malaysia People’s Republic of China The Philippines Singapore Italy Luxembourg The Netherlands Nigeria Norway Poland Portugal Russia Saudi Arabia Slovak Republic South Africa Spain Sweden Switzerland Turkey United Arab Emirates United Kingdom Shareholder Information Stock Listing Accenture Class A common shares are traded on the New York Stock Exchange under the symbol ACN. Investor Relations Investors and securities analysts may contact: Registrar and Transfer Agent Branch Transfer Agent: National City Bank Dept. 5352 Corporate Trust Operations P.O. Box 92301 Cleveland, OH 44193-0900 Bermuda Transfer Agent: Reid Management Ltd Hamilton, Bermuda Shareholder Services Accenture’s branch transfer agent, National City Bank, provides services to registered shareholders. National City Bank can be contacted in the following ways: National City Bank Dept. 5352 Corporate Trust Operations P.O. Box 92301 Cleveland, OH 44193-0900 Telephone: +1 800 622 6757 Fax: +1 216 257 8508 E-mail: shareholder.inquiries@nationalcity.com Hearing-impaired shareholders with access to telecommunications device (TDD) can communi- cate directly with National City Bank by calling +1 800 622 5571 (Toll Free) or +1 216 257 7354. Shareholders residing outside the United States should call +1 216 257 8663. Annual Report on Form 10-K The Annual Report on Form 10-K for the year ended August 31, 2002, 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: www.accenture.com. 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 Investor Relations Hotline: +1 877 ACN 5659 in the United States and Puerto Rico; +1 703 797 1711 outside the United States and Puerto Rico 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. 35 About Accenture Accenture Accenture is the world’s leading management consulting and technology services company. Committed to delivering innovation, Accenture collaborates with its clients to help them realize their visions and create tangible value. With deep industry expertise, broad global resources and proven experience in consulting and outsourcing, Accenture can mobilize the right people, skills, alliances and technologies. With more than 75,000 people in 47 countries, Accenture works with clients in nearly every major industry worldwide. Through the integration of consulting and outsourcing, Accenture: • Identifies critical areas with potential for maximum business impact. • Innovates and transforms the processes in those areas. • Delivers performance improvements and lower operating costs by assuming responsibility for certain business functions or areas—and Accenture holds itself accountable for results. Accenture aims to be a good corporate citizen. Working with other businesses, governments and non-government organizations, the company helps shape thinking on the role of business in society. Through its practical actions, Accenture makes a real difference in the communities in which it operates. These activities draw on its core strengths and the skills of Accenture people and include international initiatives, community vol- unteer efforts and pro bono consulting. Accenture is taking a leading role in implementing programs that enable entrepreneurs in developing countries to make the most of digital opportunities through public/private partnerships. Accenture’s home page is www.accenture.com. 36 . 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 2 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 . a t n a l t A / I A E : n g i s e D 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 within the mean- ing of Section 27A of the Securities Act and Section 21E of the Exchange Act 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 guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to pre- dict. 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. EVA® is a registered trademark of Stern Stewart & Co. This document makes reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of own- ership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks. Copyright © 2002 Accenture All rights reserved. Accenture, its logo, and Accenture Innovation Delivered are trademarks of Accenture. 

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