Accenture
Annual Report 2007

Plain-text annual report

Research and Experience: We have what it takes to deliver high performance Annual Report 2007 About the cover: The people of Accenture draw on their own experience and the expertise of colleagues around the world to deliver high performance. Pictured, from the right, are Sarah Mansour, David Garcia de Marina, Shakuntala Basu, Zun Lee and Andre Hughes. Whether working with clients in Canada, India, the United Kingdom, the United States or elsewhere, they have access to groundbreaking research on high-performance businesses and the unparalleled insights of the 170,000-person-strong Accenture team. When knowledge meets experience, trends are anticipated and acted upon. Goals are set and met. High performance is defined and delivered. The Accenture Annual Report 2007 explores how the interplay between our groundbreaking research and our unparalleled experience leads to high performance for our clients—and our company. Contents About Accenture Letter from Our Chairman & CEO Financial Highlights Research and Experience: A Powerful Combination Zhejiang Telecom Thomas Cook Warner Bros. ThyssenKrupp Steel Inland Revenue Authority of Singapore ING Enablis Financial Statements Board of Directors and Executive Leadership Team Shareholder Information Financial and Other Notes Cover Foldout 1 3 4 5 6 7 8 10 11 13 14 Inside Back Cover Back Cover Foldout Back Cover Foldout NYSE: ACN 1 About Accenture Accenture is a global management consulting, technology services and outsourcing company. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. Our understanding of high performance comes not only from our experience in working with clients, but also from our ongoing research into High Performance Business. This multimillion-dollar, global research program has, to date, spanned 36 industry segments and studied more than 6,000 companies, including 500 high performers. Through the High Performance Business initiative, we are identifying the characteristics and capabilities that enable organizations—in both the private and public sectors—to achieve and sustain high performance. To see insights from our research and experience, including our study of more than 500 high performers, visit www.accenture.com/research Comparison of Cumulative Total Return August 31, 2002, to August 31, 2007, Accenture vs. S&P 500 Stock Index and Peer Group Index Accenture Peer Group S&P 500 $300 200 100 0 2002 2003 2004 2005 2006 2007 Indexed Prices as of August 31 Accenture Peer Group S&P 500 2002 $100 $100 $100 2003 $129 $119 $112 2004 $159 $117 $125 2005 $148 $144 $141 2006 $182 $181 $153 2007 $256 $251 $176 The performance graph at left shows the cumulative total shareholder return on our Class A common shares for the period starting on August 31, 2002, and ending on August 31, 2007, which was the end of fiscal 2007. This is compared with the cumulative total returns over the same period of the S&P 500 Index and a peer group index consisting of BearingPoint, Inc., Cap Gemini SA, Computer Sciences Corporation, Electronic Data Systems Corporation, Hewlett-Packard Company and International Business Machines Corporation. The graph assumes that on August 31, 2002, $100 was invested in our Class A common shares and $100 was invested in each of the other two indices, with dividends reinvested on the date of payment without payment of any commissions. The performance shown in the graph represents past performance and should not be considered an indication of future performance. Compound Annual Growth Rate 1989–2007 16% Revenues Before Reimbursements1 Years Ended August 31 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 $ 19,696 16,646 15,547 13,673 11,818 11,574 11,444 9,752 9,550 8,215 6,275 4,942 4,001 3,220 2,833 2,583 2,256 1,876 1,433 Revenues Before Reimbursements by Operating Group $20,000 $15,000 $10,000 $5,000 $0 Percent Change Percent Change Local Currency US Dollars 2007 Percent Change Percent Change Local Currency US Dollars 2006 Communications & High Tech Financial Services Government 2 Products Resources Other $ 4,600 4,357 2,561 4,913 3,243 22 Total Revenues Before Reimbursements $ 19,696 10% 22 15 23 22 n/m 18% 5% 16 12 18 17 n/m 13% $ 4,177 3,558 4 2,221 2 4,011 2,666 13 $ 16,646 4% 7 4 12 12 n/m 7% 6% 15 12 n/m 9% Revenues Before Reimbursements by Geography Percent Change Percent Change Local Currency US Dollars 2007 Percent Change Percent Change Local Currency US Dollars 2006 Americas EMEA 3 Asia Pacific $ 8,483 9,534 1,679 Total Revenues Before Reimbursements $ 19,696 10% 25 33 18% 9% 16 28 13% $ 7,741 7,644 1,261 $ 16,646 15% (1) 17 7% 14% 3 20 9% 1 This chart reflects revenues before reimbursements (“net revenues”). Reimbursements include travel and out-of-pocket expenses and third-party costs, such as the cost of hardware and software resales. 2 3 Since September 1, 2007, the Government operating group has been known as the Public Service operating group. EMEA includes Europe, the Middle East and Africa. Data presented for the 12 months ended August 31, 1997, and prior periods are derived from unaudited financial information. n/m = not meaningful. US dollar amounts in millions. To our stakeholders: We are incredibly proud of Accenture’s results in fiscal 2007. Our 170,000 men and women executed our strategy in a first-class way, delivering high performance for our clients, our company and our shareholders—and bringing meaningful change to the communities in which we live and work. In this report, we are pleased to share our financial accomplishments and describe our journey to help our clients—and Accenture—achieve and sustain high performance. Driving profitable growth In fiscal 2007, we achieved record revenues for the sixth consecutive year since becoming a public company. Highlights of our strong performance include double-digit revenue growth in US dollars and growth in local currency across our five operating groups and three geographic regions. We delivered double-digit growth in earnings per share and expanded our operating margin, and our cash flow and balance sheet remained strong. Bill Green Chairman & CEO Once again, we returned cash to shareholders. In fiscal 2007, we repurchased $2.3 billion of Accenture shares. We also declared and paid our second annual cash dividend. Our strong performance in fiscal 2007 reflects our leadership position in our industry and further differentiates Accenture in the global marketplace. I want to thank all our people for their tremendous contributions to our clients and Accenture. Their individual and collective efforts are extraordinary, and our results show it. Delivering exceptional client service Accenture weaves itself into the fabric of our clients’ industries, and we build trusted relationships with our clients to help them improve their business performance. We serve 94 of the Fortune Global 100, more than two-thirds of the Fortune Global 500 and major government agencies around the world. We are also very proud that all of our top 100 clients in fiscal 2007 have been clients for at least five years—and 85 have been clients for at least 10 years. In our work with organizations like Groupe DANONE, TerreStar, WaMu and Zhejiang Telecom (a wholly owned subsidiary of China Telecom), we leverage research from our ongoing study of High Performance Business and our NYSE: ACN 1 $776M Accenture invested $776 million in the professional development of its people in fiscal 2007. vast experience across industries and business functions. We are equally focused on helping these organizations, as well as clients like Australia Post and BP, compete in an increasingly global environment. Developing the best people in our industry Our people, of course, are the key to Accenture’s success. In fiscal 2007, we welcomed 60,000 new employees. We also invested $776 million in training and professional development to ensure we have the extensive and differentiated skills that our clients need to solve their toughest business challenges. What makes Accenture truly special is that everyone, from new hires to our most experienced executives, is grounded in our Code of Business Ethics and our six core values: Stewardship, Best People, Client Value Creation, One Global Network, Respect for the Individual and Integrity. In fact, we are proud that our Code of Business Ethics recently earned a top rating by the Ethisphere Institute, a leading ethics research and ratings organization. This shared commitment to our ethics and values—and to fostering an inclusive and diverse global workforce— preserves our rich culture, defines our character and enhances the Accenture brand. Also, our broad efforts in support of corporate citizenship are a great example of how Accenture’s people live our core values and 2 Annual Report 2007 make an important difference in their communities. This is Accenture at its best. Defining our future…in a multi-polar world We have strong momentum going into fiscal 2008. We are committed to helping our clients achieve high performance in what we call a multi-polar world—defined by multiple centers of economic power and activity—and navigate the changing economics of this environment. At the same time, we continue to operate Accenture with a focus on delivering results—for today and tomorrow. We are pleased with the progress we have made in building a diverse, durable and competitively differentiated company that is positioned for strong performance. We will continue to execute our strategy with confidence and conviction, with an aspiration to be one of the world’s great companies and a leader in the world’s most important markets. In doing so, we are building an even stronger and more successful Accenture for the future. William D. Green Chairman & CEO December 17, 2007 We delivered outstanding results in fiscal 2007 Twelve months ended August 31, 2007 Local-currency growth in revenues before reimbursements (“net revenues”) over fiscal 2006 Growth in diluted earnings per share over fiscal 2006 13% 24% $2.3B $22B New bookings Free cash flow Defined as operating cash flow of $2.6 billion net of property and equipment additions of $0.3 billion 2 Annual Report 2007 NYSE: ACN 3 Research and Experience: A Powerful Combination Understanding the nature of high performance requires serious and energetic research into the trends that are changing the world. Achieving high performance requires people who have deep experience and a passion for excellence. Accenture has built its business—and has helped strengthen the businesses of thousands of clients worldwide—through a unique blend of both. We have assembled a body of research that provides groundbreaking insights into what it takes to become a high-performance business. And we have unparalleled experience in helping organizations in all major industries pursue and achieve high performance. Our powerful combination of research and experience has made Accenture one of the world’s leading management consulting, technology services and outsourcing companies, providing an ideal foundation as we continue to strengthen our leadership in a world of unprecedented change. Keys to high performance In fiscal 2007, the interplay between experience and research continued to offer us fresh insights into the nature of the business world, at the same time reinforcing our insights into the keys to high performance. At their core, these insights tell us that high-performance businesses: • Have a clear focus on their marketplace, the needs of their customers and their desired positioning. • Invest in innovation to drive value through the distinctiveness of their capabilities and offerings. • Optimize and grow the people side of their business, recognizing that their people are the key to successful implementation of their High Performance Business agendas. In the pages ahead, we explore many of the ways in which Accenture applies its research and experience to help clients—and Accenture itself—achieve high performance. 4 Annual Report 2007 NYSE: ACN 5 Zhejiang Telecom and Accenture dial up new levels of service High Performance Delivered: Zhejiang Telecom is one of the largest subsidiaries of the China Telecom Group and a leading provider of telecommunications services to Zhejiang province, with RMB15 billion (US$2 billion) in 2007 revenues and approximately 27 million customers. In the midst of its transformation from a large, state-owned operator to a customer-focused provider, Zhejiang Telecom engaged Accenture to establish a customer relationship manage- ment and billing platform that would improve service quality. During the project’s pilot phase in the city of Wenzhou, Accenture’s solution helped Zhejiang Telecom achieve a significant increase in the number of customers who purchased bundled services each month. Zhejiang Telecom moved quickly to roll out the solution to additional cities. By May 2007, the entire province was online with the new system, which will give Zhejiang Telecom a competitive edge when China allows “third-generation” mobile telephone services such as wireless broadband. Accenture’s work in helping to integrate Zhejiang Telecom’s business support systems received the Best Project Award of 2006 from Billing China, an organization focusing on the Chinese telecommunications industry, as well as two other major industry awards. High-performance businesses have remarkable clarity when it comes to setting strategic direction, especially regarding big decisions. They always seem to be in the right place at the right time. From “The Right Place, the Right Time,” by Tim Breene, David Mann and Paul F. Nunes of Accenture, Outlook, October 2005 We project that China will double its per capita income in 10 years—five times more quickly than the United Kingdom and the United States did during the Industrial Revolution. Vast numbers of new consumers will enter the market, while existing consumers will seek more sophisticated products and services. According to a study commissioned by Accenture, China and India will together contain 123 million middle-class households by 2010—more than the total number of all households in the United States. Accenture research shows that high-performance businesses make the right decisions regarding where and when to compete. For multinational companies, that often means a new focus on emerging markets. Until recently, emerging nations were known primarily as the world’s workshops, exporting products and services to the developed economies of the West. But now, emerging nations are becoming important consumer markets in their own right. China, for example, is by far the world’s biggest market for mobile phones, televisions and automobiles. Mexico is the second-largest soft drinks market. And India is the world’s largest consumer of clothing and gold. We expect that emerging economies will account for more than half of all global consumption by 2025, making them increasingly attractive to multinational manufacturers, service providers and retailers. New markets…new focus High-performance businesses know that serving the emerging consumer requires a new market focus—one that recognizes and adapts to the unique characteristics of each market. Accenture helps clients improve their market focus and position through a wide range of sales, service and marketing transformation services. For example, based on our experience in global and local brand management, we help multinational clients meet changing consumer preferences. Our experience in creating sophisticated pricing strategies has enabled clients to become competitive and profitable in emerging markets. With our experience in developing customer-centric strategies, we help clients understand and satisfy all types of consumers. And based on our knowledge of demand-side process innovation and optimization, we help clients stand out in a crowded global marketplace. 4 Annual Report 2007 NYSE: ACN 5 Thomas Cook and Accenture share a journey to high performance High Performance Delivered: When you handle the complex travel details of more than 19 million customers, it’s a good idea to keep your own business as simple as possible. In 2002, that compelling logic led Thomas Cook, a €12 billion (US$15 billion) leader in travel services, to outsource a number of back-office business processes for its UK operations to Accenture, encompassing finance, human resources and information technology. Today, the Accenture Global Delivery Network manages more than 300 applications and more than 400 services in support of 750 Thomas Cook locations. The result is a powerful example of high performance. Since 2002, Thomas Cook has reduced its back-office costs by more than 50 percent, giving the company one of the lowest cost structures in the industry. At the same time, Thomas Cook has focused its resources on customer-facing activities that contribute to profitability. On the strength of these accomplishments, Thomas Cook and Accenture recently extended their outsourcing relationship. Following its 2007 merger with MyTravel plc, a UK travel company, Thomas Cook signed a major new agreement with Accenture to achieve back-office integration. Accenture Management Consulting Accenture also supports its clients’ market focus and position through a wide array of management consulting services. We currently employ nearly 15,000 management consultants worldwide and are a leading provider of management consulting services. Our management consultants use their industry or functional expertise to identify the business ingredients that can help our clients outperform their peers and then help implement the recommended strategies. We have a unique management consulting portfolio that spans strategy consulting, operational consulting, process reengineering, business systems consulting and change enablement. Areas of specialization include supply chain management, customer relationship management, human performance management, strategy, and finance and performance management. We plan to significantly increase the number of manage- ment consulting professionals worldwide. In addition to established markets such as Germany, Japan, the United Kingdom and the United States, we expect India to play a key role in our expansion, with up to 2,000 management consulting professionals there by the end of 2008. Expanding our management consulting capabilities in India will complement the capabilities we have in technology and outsourcing, benefiting both domestic clients in India and clients in other markets. As we continue to strengthen our position within existing markets, we serve a growing list of emerging-market multinationals that are seeking to expand globally—including Brasil Telecom, China Construction Bank, Korea’s Kumho Petrochemical Co., Ltd. and India’s Tata Steel. Accenture’s market focus and position Accenture continually adapts its own market focus and position to better support clients in developed nations— as well as those in developing nations. In recent years, our strategy has included aggressive expansion into rapidly emerging economies such as Brazil, Russia, India and China, and we are poised to enter additional emerging markets around the world. In addition, we have structured our global organization and culture so that every office and every client benefits from the full capabilities of the Accenture organization. So, while some competitors are just entering the world’s emerging markets, Accenture has a mature presence that helps us lead clients into a future of opportunity. For instance, more than 1,000 clients are served by the Accenture Global Delivery Network. With more than 40 delivery centers around the world, the Accenture Global Delivery Network leverages our proven practices to provide seamless, high-quality service, 24/7. 6 Annual Report 2007 NYSE: ACN 7 ThyssenKrupp Steel and Accenture solve a weighty challenge High Performance Delivered: To the human eye, one 25-ton steel slab looks very much like another. And yet, each might be manufactured for a different application, with distinct ingredients and properties. To help ensure accuracy and efficiency at its new steel plant in Brazil, ThyssenKrupp Steel, an €11 billion (US$13 billion) steelmaker headquartered in Duisburg, Germany, wanted an automated method for identifying and tracking its slabs at every step in the supply chain. For the solution, ThyssenKrupp Steel turned to Accenture, which has more than 10 years of experience in developing radio frequency identification (RFID) technologies. Accenture’s industry professionals, working with Accenture Technology Labs in Sophia Antipolis, France, developed a cutting-edge system that attaches RFID flags to each steel slab for instant and reliable identification. The three-dimensional flags not only overcome the challenges that are encountered when sending radio waves through solid steel, they also help ensure that every one of the 250,000 steel slabs produced at the plant each year reaches its intended destination—without delays. Accenture’s innovative RFID solution is becoming the new standard for high performance in the metals industry, attracting interest from manufacturers worldwide. In short, innovation is becoming more geographically dispersed, with clusters of innovation springing up in locations as diverse as Bangalore, Beijing, Krakow and Seoul. The message is clear: developed nations can no longer take their lead in innovation for granted. Beyond in-house research and development Accenture helps clients adapt to this new world by support- ing open innovation models that go beyond the traditional approach of in-house research and development. Increasingly, we help companies in such industries as pharmaceuticals, health care, technology and automotive collaborate with outside corporate and university research resources to capitalize on the latest ideas. Because customers themselves are rich sources of new product and service ideas, we help clients leverage customer-led innovation. Further, as companies enter new markets, they are particularly in need of insights into the desires of local consumers—another area in which we help clients. The relentless advance of technological change means that enterprises must make difficult and judicious choices when it comes to embracing new technologies. From “Eight Trends that are Redefining IT,” by Kishore S. Swaminathan of Accenture, Outlook, September 2007 Distinctive capabilities are forged by an organization’s commitment to serving customers better through successful innovation. Innovation has long been regarded as the domain of the triad economies of Europe, Japan and the United States, founded on a base of dynamic markets, skills and advanced technology. But as the world becomes increasingly multi-polar, with multiple centers of innovation and economic strength, this simple characterization no longer holds true. Due to a combination of deep investment in education and skills, strategic targeting of emerging industries and rapid diffusion of new technologies, many emerging markets are moving up the value chain at a far-more-rapid pace than was previously thought possible. 6 Annual Report 2007 NYSE: ACN 7 . d e v r e s e R s t h g i R l l A . y n a p m o C t n e m n i a t r e t n E . s o r B r e n r a W A . o C t n e m n i a t r e t n E r e n r u T © A C N A L B A S A C Accenture plays a strong supporting role in Warner Bros.’ digital future High Performance Delivered: From its invention of the “talkie” in 1927 to its key role in developing the first DVD, Warner Bros. Entertainment Inc. has a long history of anticipating what audiences want. Today, the company is leading the way to a future of end-to-end digital operations. Technologists from Warner Bros. and Accenture collaborated on digital delivery, starting with Warner Bros.’ advertising and promotional materials. The team is now building on that experience to enable end-to-end digital management and distribution of the company’s vast library of more than 68,000 film, TV and animated titles. While providing consumers with the multimedia entertainment options they want, the system has streamlined workflows and achieved significant cost efficiencies. The innovations behind the Warner Bros. system include automated media manufacturing, media formatting technology and new methods for guaranteeing secure delivery of extremely large media files to theaters, broadcasters and content retailers. Accenture will be able to leverage its experience and certain codeveloped technologies to help accelerate digital conversions for other companies. Bringing innovation to life Innovation begins in the human imagination—but it is often brought to life through technology. To support the broad change agendas of forward-thinking clients, more than half of Accenture’s global workforce is focused on technology. These professionals operate within the Systems Integration & Technology organization, which includes Accenture Technology Labs, the Accenture Delivery Center Network, Accenture Systems Integration Consulting, Accenture Information Management Services and Accenture Technology Consulting. Accenture Technology Labs Accenture Technology Labs, the technology research and development (R&D) organization within Accenture, has been turning technological innovation into business results for 20 years. Our R&D teams explore new and emerging technologies and use them to create prototypes and cutting-edge solutions that will help organizations achieve high performance in the future. The labs are located in France, India and the United States. Accenture Delivery Center Network Part of the Accenture Global Delivery Network, the Accenture Delivery Center Network for Technology provides large-scale, high-quality, industrialized systems integration, application outsourcing, technology consulting and infrastructure outsourcing services. Our strong technology alliances, extensive range of skills and capabilities, leading practices and industrialized approaches enable us to deliver reliable, predictable and high-quality solutions. Accenture operates a highly engineered and productive technology environment that has achieved important certifications. For example, our delivery center locations in China, India, the Philippines and Spain have achieved CMMI® Level 5 certification, signifying a high standard of process improvement practices. In addition, Accenture Infrastructure Outsourcing in India achieved ISO® 20000-1 certification, which defines the requirements for a service provider to deliver managed services. Also within the Accenture Global Delivery Network, the Accenture Delivery Center Network for Business Process Outsourcing (BPO) helps us meet the growing demand for outsourcing services. Accenture is differentiated in the outsourcing marketplace by its global footprint, extensive range of innovative BPO services, and talented professionals with both deep industry expertise and functional capabilities. Today, the Accenture Delivery Center Network for BPO encompasses locations that include Argentina, Brazil, China, the Czech Republic, India, Mauritius, the Philippines, 8 Annual Report 2007 NYSE: ACN 9 $250M Accenture will invest more than $250 million over the next three years to expand its technology consulting capabilities. Poland, Romania, Slovakia and the United States. And it supports more than 90 clients across industries and geographies, nearly one-third of which leverage multiple BPO delivery centers. Accenture Systems Integration Consulting In fiscal 2007, Accenture was named the new worldwide leader in systems integration services by a leading industry analyst firm. Accenture Systems Integration Consulting helps companies manage a full range of information technology needs by developing and deploying custom and application software to streamline and integrate business processes and systems to achieve high performance. Working with alliance partners Microsoft, Oracle and SAP and with our Avanade subsidiary, our 28,000 professionals worldwide plan, design, develop and deliver cost-effective, innovative, technology-enabled business solutions. Accenture Information Management Services The ability to access, share and use timely information is critically important to achieving high performance. Accenture Information Management Services has a deep understanding of the business and technology dimensions of the information challenge. Through strategic alliances with more than a dozen major technology vendors, we help clients improve decision making, financial management, regulatory compliance and customer service. And, we help ensure that required, valuable information is available to efficiently manage organizations and seize new opportunities. Accenture Technology Consulting With the May 2007 launch of Accenture Technology Consulting, we enhanced and expanded our ability to deliver powerful, end-to-end technology solutions required by high-performance businesses and governments. These solutions help clients align their IT and business strategies. Accenture Technology Consulting is the largest organization of its kind in the global marketplace today, with more than 4,000 professionals. In 2007, Accenture announced that it will invest more than $250 million over the next three years to expand its technology consulting capabilities. The investment, designed 8 Annual Report 2007 NYSE: ACN 9 Inland Revenue Authority of Singapore and Accenture apply innovation to collect taxes—and awards High Performance Delivered: As part of its pursuit of high performance, Inland Revenue Authority of Singapore (IRAS) recently teamed with Accenture to build a more taxpayer-centric IT system, one that uses innovation and leverages technology to provide efficient and effective services to taxpayers in Singapore. The team’s achievements include a sophisticated electronic filing system that prepopulates taxpayers’ tax forms with income information from their employers and automatically presents deductions for review. For many taxpayers, filing is now a simple, two-click process. The result of this new IT system is that more than 50 taxpayer services are now available online. Among individuals, a landmark 90 percent filing rate by the due date has been achieved, with four out of five taxpayers choosing to file electronically. IRAS’s innovative IT solution recently received the IT Excellence Award for Best Business Enabler (Government) from MIS Asia magazine, as well as the Technology Leadership award from Public Sector Technology & Management magazine. to address a strong increase in demand for services and advice from platform-independent consultants, will enable Accenture to expand on the development of: enable organizations to increase IT flexibility, scalability, predictability and security without losing command of their total IT performance. • Next-generation data center capabilities, including “green computing.” • Enterprise network offerings for designing and building converged data and voice systems. • Highly specialized IT infrastructure and application security capabilities. • Next-generation workplace capabilities that redefine the workplace as being wherever the employee needs or wants to work. Accenture Outsourcing Services High performers maximize the value of their IT investments to help them outdistance the competition. For almost two decades, Accenture has worked with clients around the world to address their most critical business imperatives through application outsourcing and infrastructure outsourcing. Our application outsourcing services go beyond traditional development and maintenance, helping clients control baseline development costs while keeping up with market innovations. Accenture Infrastructure Outsourcing leaves conventional outsourcing behind to Through our BPO services, Accenture manages specific business processes or functions for clients, transforming their businesses, delivering higher levels of performance and lowering costs. We offer clients across all industries a variety of function-specific BPO services, including finance and accounting, human resources, learning, procurement and customer contact. We also offer specialized services tailored to clients in specific industries. In addition to providing individual outsourcing services, we can bundle two or more business functions as well as IT to provide clients with even greater efficiencies, control and cost savings. Accenture’s distinctive capabilities The creation and use of innovative technology is a key element of Accenture’s distinctive capabilities. Accenture’s success has resulted in part from our propri- etary methodologies, software, reusable knowledge capital, assets and other intellectual property rights. For instance, as of August 31, 2007, we had 1,540 patent applications pending and had been issued 450 patents. 10 Annual Report 2007 NYSE: ACN 11 ING and Accenture keep things flexible High Performance Delivered: In the global financial services market, the ability to rapidly scale up or scale down production capacity is vital. When ING, a €73 billion (US$92 billion) global financial institution based in the Netherlands, wanted to boost the operational performance of its temporary workforces while reducing costs, it turned to Accenture for outsourcing services. As a long-time client, ING knew of Accenture’s unparalleled track record in managing diverse workforces—from back-office administrative personnel to front-office managers. Under the multiyear Flex@ING program, Accenture provides procurement BPO services, managing all temporary personnel in the company’s Dutch market, with the exception of IT and consulting specialists. Within the first year, Accenture’s workforce-management services met or exceeded all service-performance targets and generated significant direct and indirect cost savings. As a result, the Flex@ING program was extended in 2007 to include ING’s retail and wholesale divisions. By making contingent workforces more effective, Accenture helps ING maintain flexibility and cost savings—while focusing its internal resources on achieving high performance. Talent is now a top strategic issue, and a human capital strategy must now be an intrinsic part of any business strategy. performance anatomy. Such a view will help organizations overcome their human capital management challenges and will be a key factor that separates winners from losers in an increasingly competitive business environment. From The Talent Powered Organization: Strategies for Globalization, Talent Management and High Performance, by Peter Cheese, Robert J. Thomas and Elizabeth Craig of Accenture, published by Kogan Page, 2007 Talent shortages abound in all business sectors, especially in critical new skill areas. In addition, baby boomers in the United States and elsewhere are rapidly retiring. According to The Economist, Fortune 500 companies could lose up to half of their senior managers to retirement in the next five years. On the other side of the equation, there are approximately 425 million potential workers in developing countries. However, the availability of this labor pool to multinational organizations is limited by increasing domestic competition for graduates with the appropriate education and skills. But the people side of business is about more than just finding the right employees. It’s also about managing talent for maximum effectiveness and a sustained competitive advantage. Accenture believes that a strategic view of talent—one that takes a holistic, integrated approach that aligns processes to business needs—is a critical element of an organization’s Workforce-performance management services Developing an effective workforce is a top priority for world-class enterprises. Companies with well-trained, knowledgeable and flexible workforces respond better to market opportunities and business challenges than those whose workers are less well prepared. Accenture plays a vital role in the global business network by helping clients adopt new labor models that attract and retain qualified employees—and by then helping those employees perform at their best. For example, we help organizations measure and manage their workforce performance, strengthening the effective- ness of their teams and individuals. Our services help bring rigor to clients’ workforce-performance programs through streamlined processes, objective reviews, and integration with talent-management, compensation and workforce- development programs. Most important, Accenture takes a collaborative approach to helping clients with their HR and workforce-performance strategies, working together to define their strategies and associated policies and processes. 10 Annual Report 2007 NYSE: ACN 11 87,000 Accenture employees contributed more than 87,000 hours of pro bono services to not-for-profit organizations in fiscal 2007. Accenture’s performance anatomy To strengthen its own performance anatomy, Accenture continues to pursue an aggressive quest for the very best talent. We have implemented comprehensive internal programs for HR transformation, workplace transformation, organization change management, and global hiring and retention throughout our own organization. These programs emphasize the development of talent, the building of special skills and the outsourcing of less-strategic elements of our own business to improve strategic focus. They also seek to shift services to the most cost-efficient resources. For example, in fiscal 2007, we welcomed a record number of new professionals in India, where educational standards are high and labor costs remain low. Seamless collaboration In today’s world, talent is located everywhere. The ability of professionals in multiple locations to collaborate seamlessly enables Accenture to source work where it is regionally appropriate through the Accenture Global Delivery Network. Each delivery center is equipped with the most advanced information technology and most secure infrastructure in the industry today—and each is linked with every other delivery center in our network to ensure business continuity. Together, they represent a massive global engine of high performance. Most important, the common methodologies, tools, architectures and metrics of the Accenture Delivery Suite unify these multiple centers and their personnel. This suite creates a scalable and flexible network that allows clients to obtain the right skills and services at the right price wherever they are available: onshore, nearshore or offshore. In fiscal 2007, the Accenture Global Delivery Network continued to expand, adding a second center in the Czech Republic, as well as a new center in Delhi, our tenth in India. Selective acquisitions Where special talents and services are found, Accenture’s ongoing acquisition strategy brings them into our organization. In fiscal 2007, Accenture acquired companies that brought significant new skills, knowledge and client opportunities to our organization, including Digiplug, George Group and Mediasenz. Building a talent-powered organization To optimize its human capital, Accenture is working to solidify its position as a talent-powered organization. As detailed in The Talent Powered Organization: Strategies for Globalization, Talent Management and 12 Annual Report 2007 NYSE: ACN 13 Enablis helps unlock Africa’s entrepreneurial spirit High Performance Delivered: The untapped entrepreneurial spirit within developing nations has the potential to make an immense contribution to economic development. Enablis is working to turn that potential into real and sustainable growth. Founded in 2003 by the Canada Fund for Africa, Accenture and Telesystem, Enablis is a groundbreaking not-for-profit organization that offers mentoring and funding to entrepreneurs in developing countries. Its offices in South Africa serve a rapidly growing network of 300 small businesses. Now, with the help of a $1.5 million Accenture Foundations grant and consulting support donated by Accenture Development Partnerships, Enablis is expanding its reach to other African countries, starting with Kenya, site of a call center recently founded by Enablis-backed entrepreneurs. “Africa needs enterprise and jobs,” says Donovan Muller, an Accenture senior executive in South Africa and Enablis South Africa board member. “Enablis is providing a scalable solution. By supporting the growth of the small, medium and micro-sized enterprises sector—the backbone of the economy in developing countries—we can have a positive impact on not just the livelihoods of individuals but on the community as a whole, inspiring further investment and support from private- and public-sector partners.” High Performance, a recent book by Peter Cheese, Robert J. Thomas and Elizabeth Craig of Accenture, the talent-powered organization is one that maximizes the performance of critical business functions and businesses by investing in, developing and multiplying all of its talent. At Accenture, our global organization consists of four workforces: Consulting, which works with clients to drive high performance; Enterprise, which supports Accenture’s client-facing professionals; Services, which delivers high-value services and operational excellence to clients; and Solutions, which delivers a broad spectrum of skills and expertise for IT applications for clients. Because each of these workforces has distinct characteristics, goals and motivations, we have structured our own compensation, development and performance-management programs to elicit the highest levels of performance. Working toward a better world High performance not only differentiates Accenture in the marketplace, it also guides our corporate citizenship strategy and programs. We seek to engage actively with the communities in which we live and work, while nurturing the personal goals and aspirations of our diverse and talented employees. In fiscal 2007, Accenture and the Accenture Foundations committed $14 million in community investment through local and global giving programs. To enhance the value of this investment, we contributed more than 87,000 hours of pro bono work to not-for-profit organizations and more than 70,000 hours of consulting services through Accenture Development Partnerships. In addition, our professionals contributed 2,500 days of service through Voluntary Service Overseas programs. An increasingly critical focus of our corporate citizenship agenda is the environment. We are committed to exempli- fying environmental best practices as a provider of services to our clients, as a procurer of services from our suppliers and as an employer of our people. Over the past year, we implemented an environmental responsibility policy that guides our actions and operations, and we have launched a large number of pilot initiatives across our locations globally to address this important challenge. High Performance Business: We have what it takes Research and experience show that a strong focus, aggres- sive innovation and talented people are the keys to lasting success in a changing world. The value of these fundamen- tals is proven in the success of our clients and the growth of our own company. With confidence in our approach and the body of skills represented by our people, we at Accenture will continue to apply our research and experience toward achieving high performance—for our clients and our company. 12 Annual Report 2007 NYSE: ACN 13 Consolidated Income Statements Revenues: Revenues before reimbursements (“Net Revenues”) 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 Reorganization costs (benefits), net Total operating expenses Operating Income Gain on investments, net Interest, net Other expense Income Before Income Taxes Provision for income taxes Income Before Minority Interest Minority interest Net Income Weighted Average Shares: Basic Diluted Earnings Per Share: Basic Diluted Cash dividends per share Twelve Months Ended August 31, 2007 Percent of Net Revenues Twelve Months Ended August 31, 2006 Percent of Net Revenues 100% $ 19,696 1,757 21,453 13,654 1,757 15,411 1,904 1,619 26 18,960 2,493 18 130 (22) 2,619 896 1,723 (480) $ 1,243 69% 10% 8% 12.7% 13% 9% 6% $ 16,646 1,582 18,228 11,652 1,582 13,234 1,708 1,493 (48) 16,387 1,841 2 109 (28) 1,924 491 1,433 (460) $ 973 100% 70% 10% 9% 11.1% 12% 9% 6% 604,128,805 861,923,335 589,099,824 894,257,833 $ 2.06 $ 1.97 $ 0.35 $ 1.65 $ 1.59 $ 0.30 US dollar amounts in millions, except share and per share data. 14 Annual Report 2007 NYSE: ACN 15 Consolidated Balance Sheets Assets Current Assets: Cash and cash equivalents Short-term investments Receivables from clients, net Unbilled services, net Other current assets Total current assets Non-Current Assets: Unbilled services, net Investments Property and equipment, net Other non-current assets Total non-current assets Total Assets Liabilities and Shareholders’ Equity Current Liabilities: Current portion of long-term debt and bank borrowings 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 August 31, 2007 August 31, 2006 $ 3,314 231 2,409 1,290 727 7,971 64 82 808 1,822 2,776 $ 10,747 $ 24 985 1,785 2,274 1,895 6,963 3 978 981 740 $ 3,067 353 1,916 1,187 668 7,191 105 125 728 1,348 2,306 $ 9,497 $ 25 856 1,467 1,694 1,731 5,773 27 935 962 868 Shareholders’ Equity Total Liabilities and Shareholders’ Equity 2,063 $ 10,747 1,894 $ 9,497 14 Annual Report 2007 NYSE: ACN 15 US dollar amounts in millions. Certain balance sheet amounts reported in fiscal 2006 have been reclassified to conform to the fiscal 2007 presentation. Consolidated Cash Flows Statements Cash Flows From Operating Activities: Net income Depreciation, amortization and asset impairments Share-based compensation expense Minority interest Change in assets and liabilities, net of acquisitions Other, net Net cash provided by operating activities Cash Flows From Investing Activities: Purchases of property and equipment Purchases of businesses and investments, net of cash acquired Other investing, net Net cash used in investing activities Cash Flows From Financing Activities: Proceeds from issuance of common shares Purchases of common shares Cash dividends paid Other financing, net Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period Twelve Months Ended Twelve Months Ended August 31, 2006 August 31, 2007 $ 1,243 444 307 480 252 (95) 2,631 (364) (192) 206 (350) 488 (2,308) (293) (15) (2,128) 94 247 3,067 $ 3,314 $ 973 352 271 460 885 (273) 2,668 (306) (211) 274 (243) 437 (2,087) (268) (26) (1,944) 102 583 2,484 $ 3,067 US dollar amounts in millions. The complete text of Accenture’s Annual Report on Form 10-K for the year ended August 31, 2007, including financial statements, footnotes and auditor’s report, can be viewed via the Internet through the Investor Relations section of our website at www.accenture.com/investor 16 Annual Report 2007 Shareholder Information Stock listing Investor Relations Accenture Ltd Class A common shares are traded on the New York Stock Exchange under the symbol ACN. Certifications by Accenture’s chief executive officer and chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 have been filed as exhibits to our most recent Annual Report on Form 10-K. The New York Stock Exchange requires that the chief executive officer of a listed company certify annually that he or she was not aware of any violation by the company of the New York Stock Exchange’s corporate governance listing standards. Such certifica- tion was made on March 7, 2007. Richard P. Clark Managing Director-Investor Relations Accenture 800 Boylston Street Boston, MA 02199 Telephone: +1 617 488 4856 Fax: +1 617 488 4001 E-mail: investor.relations@accenture.com Investor Relations Hotline: +1 877 ACN 5659 in the United States and Puerto Rico; +1 678 999 4566 outside the United States and Puerto Rico Registrar and transfer agent Branch transfer agent: National City Bank Dept. 5352 Shareholder Services Operations P.O. Box 92301 Cleveland, OH 44101-4301 www.nationalcitystocktransfer.com Bermuda transfer agent: Appleby Management (Bermuda) Ltd. 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 Shareholder Services Operations P.O. Box 94980 Cleveland, OH 44101-4980 Telephone: +1 800 622 6757 Fax: +1 216 257 8508 E-mail: shareholder.inquiries@nationalcity.com Hearing-impaired shareholders with access to a telecommunication device (TDD) can communicate 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. Corporate Communications Roxanne Taylor Chief Marketing & Communications Officer Accenture 1345 Avenue of the Americas New York, NY 10105 Telephone: +1 917 452 5106 Fax: +1 917 527 6126 E-mail: roxanne.taylor@accenture.com Available information Our website address is www.accenture.com. We make available free of charge on the Investor Relations section of our website (www.accenture.com/investor) our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”). We also make available through our website other reports filed with or furnished to the SEC under the Exchange Act, including our proxy statements and reports filed by officers and directors under Section 16(a) of the Exchange Act, as well as our Code of Business Ethics. We do not intend for informa- tion contained in this annual report or on our website to be part of the Annual Report on Form 10-K. This report and our Annual Report on Form 10-K for the fiscal year ended August 31, 2007, together constitute Accenture’s annual report to security holders for purposes of Rule 14a-3(b) of the Exchange Act. Financial and Other Notes All amounts throughout this annual report are stated in US dollars, except where noted. Forward-looking statements and certain factors that may affect our business All references to years in this annual report, unless otherwise noted, refer to our fiscal years, which end on August 31. Reconciliation of non-GAAP measures The Accenture Annual Report 2007 contains certain non-GAAP (Generally Accepted Accounting Principles) measures that our management believes provide our shareholders with additional insights into Accenture’s results of operations. The non-GAAP measures in this annual report are supplemental in nature. They should not be considered in isolation or as alternatives to net income as indicators of company performance, cash flows from operating activities as measures of liquidity or other financial information prepared in accordance with GAAP. Reconciliations of this non-GAAP financial information to Accenture’s financial statements as prepared under GAAP are included in this annual report. Trademark references This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership 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. We have included in this report “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act relating to our operations and results of operations that are based on our current expectations, estimates and projections. Words such as “may,” “will,” “should,” “likely,” “participates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expres- sions 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 predict. Forward-look- ing statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results could differ materially from what is expressed or forecast in these forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to, the factors discussed in our Annual Report on Form 10-K (available through the Investor Relations section of our website at www.accenture.com/investor) under the section entitled “Risk Factors.” The Accenture Annual Report 2007 was printed on FSC-certified Mohawk Options, a process-chlorine-free 100 percent post-consumer waste recycled paper. The emissions from purchased electricity used in the manufacture of this paper were entirely offset with Green-e certified Renewable Energy Credits from wind-power projects. Page 13 photo: Sven Torfinn/Panos Pictures Board of Directors Executive Leadership Team William D. Green Chairman & CEO Accenture Dina Dublon 4 Former Chief Financial Officer JPMorgan Chase & Co. Dennis F. Hightower 2, 3 Former Chief Executive Officer Europe Online Networks S.A. Nobuyuki Idei 3 Chairman of the Advisory Board Former Chairman and Chief Executive Officer Sony Corporation and Founder & CEO Quantum Leaps Corporation William L. Kimsey 1 Former Chief Executive Officer Ernst & Young Global, Ltd. Robert I. Lipp 1 Senior Advisor JPMorgan Chase & Co. Marjorie Magner 2, 4 Managing Partner Brysam Global Partners Blythe J. McGarvie 1 President Leadership for International Finance, LLC Sir Mark Moody-Stuart 2, 4, 5 Chairman Anglo American plc R. Timothy Breene Chief Strategy & Corporate Development Officer Boston Kevin M. Campbell Group Chief Executive-Outsourcing Dallas Gianfranco Casati Group Chief Executive-Products Milan Martin I. Cole Group Chief Executive- Communications & High Tech Hartford Pamela J. Craig Chief Financial Officer New York Karl-Heinz Floether Group Chief Executive- Systems Integration, Technology & Delivery Frankfurt Mark Foster Group Chief Executive- Management Consulting & Integrated Markets London Robert N. Frerichs Chief Risk Officer Los Angeles William D. Green Chairman & CEO Boston Wulf von Schimmelmann 3 Former Chief Executive Officer Deutsche Postbank AG Adrian Lajtha Chief Leadership Officer London Lori L. Lovelace Executive Director-Office of the CEO Dallas Lisa M. Mascolo Group Chief Executive- Public Service Washington, D.C. Pierre Nanterme Group Chief Executive- Financial Services Paris Stephen J. Rohleder Chief Operating Officer Austin David P. Rowland Senior Vice President-Finance Atlanta Basilio Rueda Senior Managing Director- Global Delivery Network Madrid Douglas G. Scrivner General Counsel & Secretary San Jose Jill B. Smart Chief Human Resources Officer Chicago Roxanne Taylor Chief Marketing & Communications Officer New York David C. Thomlinson Senior Managing Director- Geographic Strategy & Operations London Sander van ’t Noordende Group Chief Executive-Resources Amsterdam Diego Visconti International Chairman Milan 1 Audit Committee 2 Compensation Committee 3 Nominating & Governance Committee 4 Finance Committee 5 Lead Director 16 Annual Report 2007 Copyright © 2007 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 

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