Accenture Reports First-Quarter Fiscal 2013 Results, With Record Quarterly Revenues and EPS

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- Revenues increase 2% in U.S. dollars and 5% in local currency, to $7.2 billion
-

- EPS up 10%, to $1.06 -

- Operating income increases 7%, to $1.05 billion, with operating margin of
14.5% -

- New bookings are $7.5 billion, with consulting bookings of $4.2 billion and
outsourcing bookings of $3.3 billion -

- Company raises outlook for full-year EPS to range of $4.24 to $4.32-
NEW YORK--(Business Wire)--
Accenture (NYSE: ACN) reported financial results for the first quarter of fiscal
2013, ended Nov. 30, 2012, with record net revenues of $7.2 billion, an increase
of 2 percent in U.S. dollars and 5 percent in local currency over the same
period last year. Diluted earnings per share were $1.06, an increase of $0.10,
or 10 percent, over the same period last year.

Operating income was $1.05 billion, an increase of 7 percent over the same
period last year, and operating margin was 14.5 percent, a year-over-year
expansion of more than 60 basis points.

New bookings for the quarter were $7.5 billion, with consulting bookings of $4.2
billion and outsourcing bookings of $3.3 billion.

Pierre Nanterme, Accenture`s chief executive officer, said, "We are pleased with
our first-quarter results, in particular our ability to drive profitable growth
despite the continued volatility in the global economic environment. Revenue
growth, which included a strong 13 percent local-currency increase in
outsourcing, was in line with our expectations. We also delivered very good
profitability, reflecting our disciplined management of the business.

"Looking ahead, we remain focused on the successful execution of our growth
strategy and are investing to further differentiate our industry and technology
capabilities, as well as to expand our geographic footprint in key growth
markets. We are raising our business outlook for both EPS and operating margin
for the full fiscal year and remain well-positioned to continue delivering value
for our clients and shareholders."

Financial Review

Revenues before reimbursements ("net revenues") for the first quarter of fiscal
2013 were $7.22 billion, compared with $7.07 billion for the first quarter of
fiscal 2012, an increase of 2 percent in U.S. dollars and 5 percent in local
currency and within the company`s guided range of $7.1 billion to $7.35 billion.
The foreign-exchange impact of approximately negative 3 percent was consistent
with the assumption provided in the company`s fourth-quarter earnings release.

* Consulting net revenues for the quarter were $3.96 billion, a decrease of 3
percent in U.S. dollars and flat in local currency compared with the first
quarter of fiscal 2012.
* Outsourcing net revenues were $3.26 billion, an increase of 9 percent in U.S.
dollars and 13 percent in local currency over the first quarter of fiscal 2012.

Diluted EPS for the quarter were $1.06, compared with $0.96 for the first
quarter last year. The $0.10 increase in EPS reflects:

* $0.07 from higher revenue and operating results, including the unfavorable
impact of foreign exchange;
* $0.02 from a lower effective tax rate; and
* $0.02 from a lower share count;

partially offset by:

* $0.01 from lower non-operating income.

Gross margin (gross profit as a percentage of net revenues) for the quarter was
32.8 percent, compared with 31.8 percent for the first quarter last year.
Selling, general and administrative (SG&A) expenses for the quarter were $1.32
billion, or 18.2 percent of net revenues, compared with $1.27 billion, or
approximately 17.9 percent of net revenues, for the first quarter last year.

Operating income for the quarter increased 7 percent, to $1.05 billion, or 14.5
percent of net revenues, compared with $981 million, or 13.9 percent of net
revenues, for the first quarter of fiscal 2012. The operating margin expansion
of more than 60 basis points reflects improvements in contract profitability and
overall cost management compared with the first quarter last year.

The company`s effective tax rate for the quarter was 26.8 percent, compared with
28.3 percent for the first quarter last year. The lower rate in the first
quarter of fiscal 2013 was primarily due to higher benefits related to final
determinations of prior-year tax liabilities.

Net income for the quarter was $766 million, compared with $712 million for the
first quarter last year, an 8 percent increase.

Operating cash flow for the quarter was negative $109 million, and property and
equipment additions were $87 million. Free cash flow, defined as operating cash
flow net of property and equipment additions, was negative $195 million.
Operating cash flow and free cash flow for the first quarter of fiscal 2013
include a discretionary cash contribution of $500 million the company made to
its U.S. defined benefit pension plan, which had a net impact, after tax, of
$350 million. For the same period last year, operating cash flow was $475
million; property and equipment additions were $81 million; and free cash flow
was $394 million.

Days services outstanding, or DSOs, were 32 days at Nov. 30, 2012, compared with
27 days at Aug. 31, 2012 and 32 days at Nov. 30, 2011.

Accenture`s total cash balance at Nov. 30, 2012 was $5.7 billion, compared with
$6.6 billion at Aug. 31, 2012.

Utilization for the quarter was 88 percent, compared with 87 percent for the
fourth quarter of fiscal 2012 and 87 percent for the first quarter of fiscal
2012. Attrition for the first quarter of fiscal 2013 was 11 percent, compared
with 12 percent for the fourth quarter of fiscal 2012 and 12 percent for the
first quarter of fiscal 2012.

New Bookings

New bookings for the first quarter were $7.5 billion and reflect a negative 2
percent foreign-currency impact compared with new bookings in the first quarter
last year.

* Consulting new bookings were $4.2 billion, or 56 percent of total new
bookings.
* Outsourcing new bookings were $3.3 billion, or 44 percent of total new
bookings.

Net Revenues by Operating Group

Net revenues by operating group were as follows:

* Communications, Media & Technology: $1.46 billion, compared with $1.54 billion
for the first quarter of fiscal 2012, a decrease of 5 percent in U.S. dollars
and 1 percent in local currency.
* Financial Services: $1.56 billion, compared with $1.48 billion for the first
quarter of fiscal 2012, an increase of 5 percent in U.S. dollars and 9 percent
in local currency.
* Health & Public Service: $1.17 billion, compared with $1.05 billion for the
first quarter of fiscal 2012, an increase of 11 percent in U.S. dollars and 13
percent in local currency.
* Products: $1.70 billion, compared with $1.67 billion for the first quarter of
fiscal 2012, an increase of 2 percent in U.S. dollars and 5 percent in local
currency.
* Resources: $1.32 billion, compared with $1.33 billion for the first quarter of
fiscal 2012, flat in U.S. dollars and an increase of 3 percent in local
currency.

Net Revenues by Geographic Region

Net revenues by geographic region were as follows:

* Americas: $3.33 billion, compared with $3.07 billion for the first quarter of
fiscal 2012, an increase of 8 percent in U.S. dollars and 10 percent in local
currency.
* Europe, Middle East and Africa (EMEA): $2.82 billion, compared with $3.01
billion for the first quarter of fiscal 2012, a decrease of 6 percent in U.S.
dollars and flat in local currency.
* Asia Pacific: $1.06 billion, compared with $991 million for the first quarter
of fiscal 2012, an increase of 7 percent in U.S. dollars and 8 percent in local
currency.

Returning Cash to Shareholders

Accenture continues to return cash to shareholders through cash dividends and
share repurchases.

Dividend

OnNov. 15, 2012, a semi-annual cash dividend of $0.81 per share was paid to
Accenture plc Class A ordinary shareholders of record at the close of business
on Oct. 12, 2012 and toAccenture SCA Class I common shareholders of record at
the close of business on Oct. 9, 2012. These cash dividend payments totaled $560
million. This dividend represents an increase of 13.5 cents per share, or 20
percent, over the company`s previous semi-annual dividend, declared in March.

Share Repurchase Activity

During the first quarter of fiscal 2013, Accenture repurchased or redeemed 3.3
million shares for a total of $221 million, including approximately 656,000
shares repurchased in the open market.

Accenture`s total remaining share repurchase authority at Nov. 30, 2012 was
approximately $4.05 billion.

At Nov. 30, 2012, Accenture had approximately 693 million total shares
outstanding, including 641 million Accenture plc Class A ordinary shares and 52
million Accenture SCA Class I common shares and Accenture Canada Holdings Inc.
exchangeable shares.

Business Outlook

Second Quarter Fiscal 2013

Accenture expects net revenues for the second quarter of fiscal 2013 to be in
the range of $6.9 billion to $7.15 billion. This range assumes a
foreign-exchange impact of negative 1 percent compared with the second quarter
of fiscal 2012.

Full Fiscal Year 2013

For fiscal 2013, the company continues to expect net revenue growth to be in the
range of 5 percent to 8 percent in local currency.

Accenture`s business outlook for the full 2013 fiscal year continues to assume a
foreign-exchange impact of negative 1 percent compared with fiscal 2012.

The company has raised its outlook for diluted EPS for fiscal 2013 to the range
of $4.24 to $4.32 from its previously guided range of $4.22 to $4.30.

Accenture has raised its outlook for operating margin for the full fiscal year
to the range of 14.1 percent to 14.2 percent, an expansion of 20 to 30 basis
points. The company`s previously guided range was 14.0 percent to 14.1 percent.

The company continues to expect operating cash flow to be in the range of $3.2
billion to $3.5 billion; property and equipment additions to be $420 million;
and free cash flow to be in the range of $2.8 billion to $3.1 billion.

The company continues to expect to return at least $3.3 billion to its
shareholders in fiscal 2013 through dividends and share repurchases.

The company continues to expect its annual effective tax rate to be in the range
of 26 percent to 27 percent.

Accenture continues to target new bookings for fiscal 2013 in the range of $31
billion to $34 billion.

Conference Call and Webcast Details

Accenture will host a conference call at 4:30 p.m. EST today to discuss its
first-quarter fiscal 2013 financial results. To participate, please dial +1
(800) 230-1059 [+1 (612) 234-9959 outside the United States, Puerto Rico and
Canada] approximately 15 minutes before the scheduled start of the call. The
conference call will also be accessible live on the Investor Relations section
of the Accenture Web site at www.accenture.com.

A replay of the conference call will be available online at www.accenture.com
beginning at 7:00 p.m. EST today, Wednesday, Dec. 19, and continuing until
Thursday, March 28, 2013. A podcast of the conference call will be available
online at www.accenture.com beginning approximately 24 hours after the call and
continuing until Thursday, March 28, 2013. The replay will also be available via
telephone by dialing +1 (800) 475-6701 [+1 (320) 365-3844 outside the United
States, Puerto Rico and Canada] and entering access code 271680 from 7:00 p.m.
EST Wednesday, Dec. 19 through Thursday, March 28, 2013.

About Accenture

Accenture is a global management consulting, technology services and outsourcing
company, with approximately 259,000 people serving clients in more than 120
countries. 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. The company generated net
revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home
page is www.accenture.com.

Non-GAAP Financial Information

This news release includes certain non-GAAP financial information as defined by
Securities and Exchange Commission Regulation G. Pursuant to the requirements of
this regulation, reconciliations of this non-GAAP financial information to
Accenture`s financial statements as prepared under generally accepted accounting
principles (GAAP) are included in this press release. Financial results "in
local currency" are calculated by restating current-period activity into U.S.
dollars using the comparable prior-year period`s foreign-currency exchange
rates. Accenture`s management believes providing investors with this information
gives additional insights into Accenture`s results of operations. While
Accenture`s management believes that the non-GAAP financial measures herein are
useful in evaluating Accenture`s operations, this information should be
considered as supplemental in nature and not as a substitute for the related
financial information prepared in accordance with GAAP.

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. Words such
as "may," "will," "should," "likely," "anticipates," "expects," "intends,"
"plans," "projects," "believes," "estimates," "positioned," "outlook" and
similar expressions are used to identify these forward-looking statements. 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
markets in which the company competes are highly competitive, and the company
might not be able to compete effectively; the company could have liability or
the company`s reputation could be damaged if the company fails to protect client
and/or company data or information systems as obligated by law or contract or if
the company`s information systems are breached; 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 be materially adversely affected by fluctuations in
foreign currency exchange rates; the company`s Global Delivery Network is
increasingly concentrated in India and the Philippines, which may expose it to
operational 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 whom 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; the company`s business could
be materially adversely affected if the company 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; the company`s
alliance relationships may not be successful or may change, which could
adversely affect the company`s results of operations; outsourcing services and
the continued expansion of the company`s other services and solutions into new
areas 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 might
not be successful at identifying, 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 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 November 30,
2012 % of Net 2011 % of Net
Revenues Revenues
REVENUES:
Revenues before reimbursements ("Net revenues") $ 7,219,961 100 % $ 7,074,497 100 %
Reimbursements 448,075 514,611
Revenues 7,668,036 7,589,108

OPERATING EXPENSES:
Cost of services:
Cost of services before reimbursable expenses 4,853,768 67.2 % 4,822,957 68.2 %
Reimbursable expenses 448,075 514,611
Cost of services 5,301,843 5,337,568
Sales and marketing 868,202 12.0 % 837,477 11.8 %
General and administrative costs 448,852 6.2 % 432,517 6.1 %
Reorganization costs, net 465 408
Total operating expenses 6,619,362 6,607,970

OPERATING INCOME 1,048,674 14.5 % 981,138 13.9 %

Interest income 8,767 10,512
Interest expense (4,549 ) (4,158 )
Other (expense) income, net (6,436 ) 5,535

INCOME BEFORE INCOME TAXES 1,046,456 14.5 % 993,027 14.0 %

Provision for income taxes 280,425 281,270

NET INCOME 766,031 10.6 % 711,757 10.1 %

Net income attributable to noncontrolling interests (58,955 ) (61,956 )

in Accenture SCA and Accenture Canada Holdings Inc.
Net income attributable to noncontrolling interests - other (1) (8,259 ) (7,715 )

NET INCOME ATTRIBUTABLE TO ACCENTURE PLC $ 698,817 9.7 % $ 642,086 9.1 %

CALCULATION OF EARNINGS PER SHARE:
Net income attributable to Accenture plc $ 698,817 $ 642,086
Net income attributable to noncontrolling interests 58,955 61,956

in Accenture SCA and Accenture Canada Holdings Inc. (2)
Net income for diluted earnings per share calculation $ 757,772 $ 704,042

EARNINGS PER SHARE:
- Basic $ 1.09 $ 1.00
- Diluted (3) $ 1.06 $ 0.96

WEIGHTED AVERAGE SHARES:
- Basic 639,659,238 644,285,298
- Diluted (3) 716,368,102 730,745,055

Cash dividends per share $ 0.81 $ 0.675

_________________
(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 2012 have been
restated to reflect additional restricted share units issued to holders of restricted share units in connection with the fiscal 2013

payment of cash dividends.

ACCENTURE PLC

SUMMARY OF REVENUES

(In thousands of U.S. dollars)
(Unaudited)

Percent
Increase
(Decrease)
Local
Currency
Percent
Increase
(Decrease)
U.S. Dollars

Three Months Ended November 30,
2012 2011
OPERATING GROUPS
Communications, Media & Technology $ 1,458,786 $ 1,535,186 (5 %) (1 %)
Financial Services 1,562,942 1,483,839 5 9
Health & Public Service 1,174,710 1,054,302 11 13
Products 1,698,543 1,669,553 2 5
Resources 1,321,465 1,326,875 0 3
Other 3,515 4,742 n/m n/m
TOTAL Net Revenues 7,219,961 7,074,497 2 % 5 %
Reimbursements 448,075 514,611 (13 )
TOTAL REVENUES $ 7,668,036 $ 7,589,108 1 %

GEOGRAPHY
Americas $ 3,333,120 $ 3,074,717 8 % 10 %
EMEA 2,824,896 3,008,528 (6 ) 0
Asia Pacific 1,061,945 991,252 7 8
TOTAL Net Revenues $ 7,219,961 $ 7,074,497 2 % 5 %

TYPE OF WORK
Consulting $ 3,960,676 $ 4,083,424 (3 %) 0 %
Outsourcing 3,259,285 2,991,073 9 13
TOTAL Net Revenues $ 7,219,961 $ 7,074,497 2 % 5 %
_________________
n/m = not meaningful

OPERATING INCOME BY OPERATING GROUP (OG)

Three Months Ended November 30,
2012 2011
OPERATING GROUPS Operating Operating Operating Operating Increase
Income Margin Income Margin (Decrease)
Communications, Media & Technology $ 183,048 13 % $ 228,527 15 % $ (45,479 )
Financial Services 241,098 15 214,855 14 26,243
Health & Public Service 143,459 12 112,834 11 30,625
Products 235,692 14 218,775 13 16,917
Resources 245,377 19 206,147 16 39,230
Total $ 1,048,674 14.5 % $ 981,138 13.9 % $ 67,536

ACCENTURE PLC

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

November 30, 2012 August 31, 2012
(Unaudited)
ASSETS

CURRENT ASSETS:
Cash and cash equivalents $ 5,678,892 $ 6,640,526
Short-term investments 2,349 2,261
Receivables from clients, net 3,501,506 3,080,877
Unbilled services, net 1,487,964 1,399,834
Other current assets 1,342,815 1,464,433

Total current assets 12,013,526 12,587,931

NON-CURRENT ASSETS:
Unbilled services, net 11,121 12,151
Investments 27,902 28,180
Property and equipment, net 799,443 779,494
Other non-current assets 3,556,028 3,257,659

Total non-current assets 4,394,494 4,077,484

TOTAL ASSETS $ 16,408,020 $ 16,665,415

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Current portion of long-term debt and bank borrowings $ 13 $ 11
Accounts payable 890,233 903,847
Deferred revenues 2,127,658 2,275,052
Accrued payroll and related benefits 3,338,958 3,428,838
Other accrued liabilities 1,620,497 1,501,457

Total current liabilities 7,977,359 8,109,205

NON-CURRENT LIABILITIES:
Long-term debt 19 22
Other non-current liabilities 3,436,670 3,931,760

Total non-current liabilities 3,436,689 3,931,782

TOTAL ACCENTURE PLC SHAREHOLDERS' EQUITY 4,506,633 4,145,833

NONCONTROLLING INTERESTS 487,339 478,595

TOTAL SHAREHOLDERS' EQUITY 4,993,972 4,624,428

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 16,408,020 $ 16,665,415

ACCENTURE PLC

CONSOLIDATED CASH FLOWS STATEMENTS

(In thousands of U.S. dollars)
(Unaudited)

Three Months Ended November 30,
2012 2011

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 766,031 $ 711,757
Depreciation, amortization and asset impairments 139,924 132,625
Share-based compensation expense 114,170 100,558
Change in assets and liabilities/other, net (1,128,940 ) (469,682 )

Net cash (used in) provided by operating activities (108,815 ) 475,258

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (86,547 ) (80,875 )
Purchases of businesses and investments, net of cash acquired (209,952 ) (160,055 )
Other investing, net 762 1,019

Net cash used in investing activities (295,737 ) (239,911 )

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of ordinary shares 164,606 139,947
Purchases of shares (220,831 ) (285,105 )
Cash dividends paid (560,135 ) (474,896 )
Other financing, net 38,698 32,437

Net cash used in financing activities (577,662 ) (587,617 )
Effect of exchange rate changes on cash and cash equivalents 20,580 (256,902 )

NET DECREASE IN CASH AND CASH EQUIVALENTS (961,634 ) (609,172 )

CASH AND CASH EQUIVALENTS, beginning of period 6,640,526 5,701,078

CASH AND CASH EQUIVALENTS, end of period $ 5,678,892 $ 5,091,906

Accenture
Roxanne Taylor, + 917-452-5106
roxanne.taylor@accenture.com

Copyright Business Wire 2012