Accenture Reports Fourth-Quarter And Full-Year Fiscal 2012 Results, With Record Annual Revenues, EPS, Operating Margin, Free Cash Flow And New Bookings

Forward-Looking Statements

Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. These include, without limitation, risks that: the company’s results of operations could be adversely affected by volatile, negative or uncertain economic conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; the company’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions, and a significant reduction in such demand could materially affect the company’s results of operations; if the company is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; the consulting and outsourcing markets are highly competitive, and the company might not be able to compete effectively; the company’s results of operations (including its net revenues and operating income) and the value of balance-sheet items originally denominated in other currencies could be materially adversely affected by unfavorable fluctuations in foreign currency exchange rates or changes to existing currencies; the company could have liability or the company’s reputation could be damaged if the company fails to protect client and company data or information systems as obligated by law or contract or if the company’s information systems are breached; the company’s Global Delivery Network is increasingly concentrated in India and the Philippines, which may expose it to operational risks; as a result of the company’s geographically diverse operations and its growth strategy to continue geographic expansion, the company is more susceptible to certain risks; the company’s results of operations could materially suffer if the company is not able to obtain sufficient pricing to enable it to meet its profitability expectations; if the company’s pricing estimates do not accurately anticipate the cost, risk and complexity of the company performing its work or third parties upon which it relies do not meet their commitments, then the company’s contracts could have delivery inefficiencies and be unprofitable; the company’s work with government clients exposes the company to additional risks inherent in the government contracting environment, including risks related to governmental budget and debt constraints; the company’s business could be materially adversely affected if it incurs legal liability in connection with providing its services and solutions; the company’s results of operations and ability to grow could be materially negatively affected if the company cannot adapt and expand its services and solutions in response to ongoing changes in technology and offerings by new entrants; outsourcing services subject the company to different operational risks than its consulting and systems integration services; the company’s services or solutions could infringe upon the intellectual property rights of others or the company might lose its ability to utilize the intellectual property of others; the company has only a limited ability to protect its intellectual property rights, which are important to the company’s success; the company’s ability to attract and retain business and employees may depend on its reputation in the marketplace; the company’s alliance relationships may not be successful or may change, which could adversely affect the company’s results of operations; the company might not successfully manage the operational and other risks associated with acquiring or integrating businesses or entering into joint ventures; the company’s profitability could suffer if its cost-management strategies are unsuccessful, and the company may not be able to improve its profitability through improvements to cost-management to the degree it has done in the past; many of the company’s contracts include performance payments that link some of its fees to the attainment of performance or business targets and/or require the company to meet specific service levels, which could increase the variability of the company’s revenues and impact its margins; changes in the company’s level of taxes, and audits, investigations and tax proceedings, or changes in the company’s treatment as an Irish company, could have a material adverse effect on the company’s results of operations and financial condition; if the company is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if the company is unable to collect its receivables or unbilled services, the company’s results of operations, financial condition and cash flows could be adversely affected; the company’s share price and results of operations could fluctuate and be difficult to predict; the company’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; the company may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

ACCENTURE PLC
CONSOLIDATED INCOME STATEMENTS
(In thousands of U.S. dollars, except share and per share amounts)
(Unaudited)
			Three Months Ended August 31,																		Year Ended August 31,
			2012					% of Net Revenues				2011					% of Net Revenues				2012					% of Net Revenues				2011					% of Net Revenues
REVENUES:
Revenues before reimbursements ("Net revenues")			$	6,835,893				100	%			$	6,687,650				100	%			$	27,862,330				100	%			$	25,507,036				100	%
Reimbursements				452,366									486,423									1,915,655									1,845,878
Revenues				7,288,259									7,174,073									29,777,985									27,352,914
OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses				4,587,003				67.1	%				4,472,263				66.9	%				18,874,629				67.7	%				17,120,317				67.1	%
Reimbursable expenses				452,366									486,423									1,915,655									1,845,878
Cost of services				5,039,369									4,958,686									20,790,284									18,966,195
Sales and marketing				839,187				12.3	%				820,841				12.3	%				3,303,478				11.9	%				3,094,465				12.1	%
General and administrative costs				468,920				6.9	%				471,610				7.1	%				1,810,984				6.5	%				1,820,277				7.1	%
Reorganization costs, net				433									407									1,691									1,520
Total operating expenses				6,347,909									6,251,544									25,906,437									23,882,457
OPERATING INCOME				940,350				13.8	%				922,529				13.8	%				3,871,548				13.9	%				3,470,457				13.6	%
Loss on investments, net				(889	)								(145	)								(858	)								(1,086	)
Interest income				11,488									11,936									42,550									41,083
Interest expense				(3,186	)								(3,930	)								(15,061	)								(15,000	)
Other (expense) income, net				(1,609	)								5,008									5,995									16,568
INCOME BEFORE INCOME TAXES				946,154				13.8	%				935,398				14.0	%				3,904,174				14.0	%				3,512,022				13.8	%
Provision for income taxes				309,999									252,533									1,079,241									958,782
NET INCOME				636,155				9.3	%				682,865				10.2	%				2,824,933				10.1	%				2,553,240				10.0	%
Net income attributable to noncontrolling interests in Accenture SCA and Accenture Canada Holdings Inc.				(51,773	)								(60,299	)								(237,520	)								(243,575	)
Net income attributable to noncontrolling interests – other (1)				(6,100	)								(10,633	)								(33,903	)								(31,988	)
NET INCOME ATTRIBUTABLE TO ACCENTURE PLC			$	578,282				8.5	%			$	611,933				9.2	%			$	2,553,510				9.2	%			$	2,277,677				8.9	%
CALCULATION OF EARNINGS PER SHARE:
Net income attributable to Accenture plc			$	578,282								$	611,933								$	2,553,510								$	2,277,677
Net income attributable to noncontrolling interests in Accenture SCA and Accenture Canada Holdings Inc. (2)				51,773									60,299									237,520									243,575
Net income for diluted earnings per share calculation			$	630,055								$	672,232								$	2,791,030								$	2,521,252
EARNINGS PER SHARE:
- Basic			$	0.91								$	0.95								$	3.97								$	3.53
- Diluted (3)			$	0.88								$	0.91								$	3.84								$	3.39
WEIGHTED AVERAGE SHARES:
- Basic				636,064,228									647,428,247									643,132,601									645,631,170
- Diluted (3)				717,827,179									739,050,449									726,416,452									742,823,519
Cash dividends per share			$	-								$	-								$	1.35								$	0.90
___________

(1)		Comprised primarily of noncontrolling interest attributable to the noncontrolling shareholders of Avanade, Inc.
(2)		Diluted earnings per share assumes the redemption of all Accenture SCA Class I common shares owned by holders of noncontrolling interests and the exchange of all Accenture Canada Holdings Inc. exchangeable shares for Accenture plc Class A ordinary shares on a one-for-one basis.
(3)		Diluted weighted average Accenture plc Class A ordinary shares and earnings per share amounts in fiscal 2011 have been restated to reflect additional restricted share units issued to holders of restricted share units in connection with the fiscal 2012 payment of cash dividends. This restatement resulted in a one cent decrease in diluted earnings per share from $3.40 to $3.39 for the year ended August 31, 2011.

ACCENTURE PLC   SUMMARY OF REVENUES
(In thousands of U.S. dollars)
(Unaudited)
											Percent				Percent
											Increase				Increase
			Three Months Ended August 31,								(Decrease)				Local
			2012				2011				U.S. dollars				Currency
OPERATING GROUPS
Communications, Media & Technology (1)			$	1,384,757			$	1,431,911			(3	%)			4	%
Financial Services				1,479,845				1,372,310			8				16
Health & Public Service				1,057,097				993,657			6				10
Products				1,607,002				1,586,462			1				8
Resources				1,303,087				1,298,799			-				7
Other				4,105				4,511			n/m				n/m
TOTAL Net Revenues				6,835,893				6,687,650			2	%			9	%
Reimbursements				452,366				486,423			(7	)
TOTAL REVENUES			$	7,288,259			$	7,174,073			2	%
GEOGRAPHY
Americas			$	3,193,198			$	3,041,001			5	%			8	%
EMEA				2,582,960				2,689,793			(4	)			8
Asia Pacific				1,059,735				956,856			11				14
TOTAL Net Revenues			$	6,835,893			$	6,687,650			2	%			9	%
TYPE OF WORK
Consulting			$	3,738,245			$	3,881,006			(4	%)			2	%
Outsourcing				3,097,648				2,806,644			10				18
TOTAL Net Revenues			$	6,835,893			$	6,687,650			2	%			9	%
															Percent
											Percent				Increase
			Year Ended August 31,								Increase				Local
OPERATING GROUPS			2012				2011				U.S. dollars				Currency
Communications, Media & Technology (1)			$	5,906,724			$	5,434,024			9	%			11	%
Financial Services				5,842,776				5,380,674			9				11
Health & Public Service				4,255,631				3,861,146			10				11
Products				6,562,974				5,931,333			11				13
Resources				5,275,001				4,882,248			8				10
Other				19,224				17,611			n/m				n/m
TOTAL Net Revenues				27,862,330				25,507,036			9	%			11	%
Reimbursements				1,915,655				1,845,878			4
TOTAL REVENUES			$	29,777,985			$	27,352,914			9	%
GEOGRAPHY
Americas			$	12,522,673			$	11,270,668			11	%			13	%
EMEA				11,296,207				10,853,684			4				8
Asia Pacific				4,043,450				3,382,684			20				18
TOTAL Net Revenues			$	27,862,330			$	25,507,036			9	%			11	%
TYPE OF WORK
Consulting			$	15,562,321			$	14,924,187			4	%			6	%
Outsourcing				12,300,009				10,582,849			16				19
TOTAL Net Revenues			$	27,862,330			$	25,507,036			9	%			11	%
__________

n/m = not meaningful
(1)		On September 1, 2011, the Company renamed the Communications & High Tech operating group to Communications, Media & Technology. No amounts have been reclassified in any period in connection with this name change.

ACCENTURE PLC
OPERATING INCOME BY OPERATING GROUP (OG)
(In thousands of U.S. dollars)
(Unaudited)
			Three Months Ended August 31,
			2012								2011
OPERATING GROUPS			Operating Income				Operating Margin				Operating Income				Operating Margin				Increase (Decrease)
Communications, Media & Technology (1)			$	180,930			13	%			$	188,444			13	%			$	(7,514	)
Financial Services				235,613			16					187,312			14					48,301
Health & Public Service				48,032			5					100,715			10					(52,683	)
Products				219,270			14					206,169			13					13,101
Resources				256,505			20					239,889			18					16,616
Total			$	940,350			13.8	%			$	922,529			13.8	%			$	17,821
			Year Ended August 31,
			2012								2011
OPERATING GROUPS			Operating Income				Operating Margin				Operating Income				Operating Margin				Increase (Decrease)
Communications, Media & Technology (1)			$	845,411			14	%			$	727,761			13	%			$	117,650
Financial Services				809,633			14					898,287			17					(88,654	)
Health & Public Service				376,125			9					318,430			8					57,695
Products				863,860			13					679,716			11					184,144
Resources				976,519			19					846,263			17					130,256
Total			$	3,871,548			13.9	%			$	3,470,457			13.6	%			$	401,091

(1)		On September 1, 2011, the Company renamed the Communications & High Tech operating group to Communications, Media & Technology. No amounts have been reclassified in any period in connection with this name change.

ACCENTURE PLC
CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
			August 31, 2012				August 31, 2011
			(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			$	6,640,526			$	5,701,078
Short-term investments				2,261				4,929
Receivables from clients, net				3,080,877				3,236,059
Unbilled services, net				1,399,834				1,385,733
Other current assets				1,464,433				1,143,384
Total current assets				12,587,931				11,471,183
NON-CURRENT ASSETS:
Unbilled services, net				12,151				49,192
Investments				28,180				40,365
Property and equipment, net				779,494				785,231
Other non-current assets				3,257,659				3,385,539
Total non-current assets				4,077,484				4,260,327
TOTAL ASSETS			$	16,665,415			$	15,731,510
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings			$	11			$	4,419
Accounts payable				903,847				949,250
Deferred revenues				2,275,052				2,219,270
Accrued payroll and related benefits				3,428,838				3,259,252
Other accrued liabilities				1,501,457				1,474,398
Total current liabilities				8,109,205				7,906,589
NON-CURRENT LIABILITIES:
Long-term debt				22				-
Other non-current liabilities				3,931,760				3,474,049
Total non-current liabilities				3,931,782				3,474,049
TOTAL ACCENTURE PLC SHAREHOLDERS' EQUITY				4,145,833				3,878,951
NONCONTROLLING INTERESTS				478,595				471,921
TOTAL SHAREHOLDERS' EQUITY				4,624,428				4,350,872
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			$	16,665,415			$	15,731,510

ACCENTURE PLC
CONSOLIDATED CASH FLOWS STATEMENTS
(In thousands of U.S. dollars)
(Unaudited)
			Three Months Ended August 31,										Year Ended August 31,
			2012					2011					2012					2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income			$	636,155				$	682,865				$	2,824,933				$	2,553,240
Depreciation, amortization and asset impairments				178,909					141,340					593,545					513,256
Share-based compensation expense				125,697					106,419					538,086					450,137
Change in assets and liabilities/other, net				767,430					450,652					300,288					(74,894	)
Net cash provided by operating activities				1,708,191					1,381,276					4,256,852					3,441,739
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment				(115,258	)				(136,975	)				(371,974	)				(403,714	)
Purchases of businesses and investments, net of cash acquired				(699	)				(187,525	)				(174,383	)				(306,187	)
Other investing, net				3,342					3,370					10,972					6,514
Net cash used in investing activities				(112,615	)				(321,130	)				(535,385	)				(703,387	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of ordinary shares				56,722					89,003					454,387					557,366
Purchases of shares				(695,741	)				(730,804	)				(2,098,841	)				(2,171,877	)
Cash dividends paid				-					-					(950,857	)				(643,642	)
Other financing, net				(3,965	)				27,266					36,456					136,649
Net cash used in financing activities				(642,984	)				(614,535	)				(2,558,855	)				(2,121,504	)
Effect of exchange rate changes on cash and cash equivalents				59,275					(1,217	)				(223,164	)				245,938
NET INCREASE IN CASH AND CASH EQUIVALENTS				1,011,867					444,394					939,448					862,786
CASH AND CASH EQUIVALENTS, beginning of period				5,628,659					5,256,684					5,701,078					4,838,292
CASH AND CASH EQUIVALENTS, end of period			$	6,640,526				$	5,701,078				$	6,640,526				$	5,701,078

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