ANNUAL

REPORT
2017

strategy | consulting | digital | technology | operations

DELIVERING
FISCAL 2017
Accenture’s very strong financial performance in fiscal
2017 reflects the continued successful execution of our
growth strategy—in particular, the rapid rotation of our
business to new, high-growth areas.
We delivered all the objectives in our initial business
outlook for the year, driving broad-based revenue
growth that significantly outpaced the market, as well as
double-digit growth in earnings per share on an adjusted
basis. We also generated excellent free cash flow and
significantly increased our investments in the business,
while again returning substantial cash to shareholders.

Here are some highlights:

• We delivered record net revenues of • Operating margin was 13.3 percent,
$34.9 billion, a 7 percent increase in local compared with 14.6 percent in fiscal
currency, with positive growth across 2016. Excluding the pension settlement
the vast majority of our industry groups, charge in fiscal 2017, adjusted operating
geographic markets and businesses. margin was 14.8 percent, an expansion
of 20 basis points from fiscal 2016.
• We generated very strong new bookings
of $37.4 billion, a 6 percent increase • We generated free cash flow of
in local currency. $4.5 billion and returned $4.2 billion
in cash to shareholders through
• Diluted earnings per share were $5.44, dividends and share repurchases.
compared with $6.45 in fiscal 2016. After
excluding a $0.47 per share pension • We announced a 10 percent increase
settlement charge in fiscal 2017 and $1.11 in our semi-annual dividend, to $1.33
per share in gains on the sale of businesses per share, shortly after fiscal year-end.
in fiscal 2016, adjusted EPS of $5.91 in
fiscal 2017 increased 11 percent.

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We also reached an important milestone in fiscal 2017:
Net revenues from what we call “the New”—digital, cloud
and security services—grew about 30 percent to $18 billion,
and accounted for 50 percent of total revenues for the
first time. With our rapid rotation to the New and our highly
diverse portfolio of business, we successfully executed in
an uncertain and increasingly competitive environment and
continued driving strong, profitable growth.

Our very strong performance in fiscal 2017— in each of our five businesses and driving
on top of our outstanding results for the last synergies across them to deliver tangible
two fiscal years—clearly demonstrates that we business outcomes for our clients. We also
are executing our growth strategy in a durable continue to leverage our unmatched position
and sustained way. in the technology ecosystem as the largest
independent services provider and the leading
For the last three fiscal years combined, we partner of many key players.
delivered compound annual revenue growth
of 9 percent in local currency, as well as This is why Accenture remains the partner
9 percent compound annual growth in of choice for so many of the world’s leading
adjusted earnings per share. Over the same companies and largest government agencies.
three-year period, Accenture has delivered a We serve more than three-quarters of the
compound annual total return to shareholders FORTUNE Global 500 and 95 of the top 100.
(including dividends) of 20 percent—twice the We continue to build strong and enduring
total return of the S&P 500 Index. client relationships—all of our top 100 clients
have been with us for at least five years, and
98 have been clients for 10 years or more.
Leading in the New
We are especially pleased with the
We are in the midst of a technology revolution
leadership positions we have built in digital,
that is disrupting and transforming businesses
cloud and security services as we rotate
and entire industries around the world. In this
to the New consistently and successfully
context, we are working with our clients to
around the world.
apply innovation and intelligence at the heart
of their organizations. • Digital—Accenture Interactive has been
recognized as the largest provider of digital
Our combination of end-to-end capabilities
marketing services—both globally and
and deep industry expertise—across
in the United States—and is working with
Accenture Strategy, Accenture Consulting,
many of the world’s leading brands to
Accenture Digital, Accenture Technology
transform their customer experiences.
and Accenture Operations—is unique in
We helped Melia Hotels, the European
the marketplace. We are competing at scale

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 hospitality company, implement a digital Investing for the Future
transformation strategy to increase sales
through data-driven customer segmenta- To make Accenture even more relevant and
tion. In just one year, direct sales increased competitive, we continue to invest aggres-
27 percent and more than 1 million people sively across the company—both organically
joined Melia’s rewards program. and through strategic acquisitions. In fiscal
2017, we significantly stepped up our pace
• Cloud—Accenture is helping many leading of acquisitions, deploying approximately
companies migrate seamlessly to the cloud $1.7 billion across 37 transactions—nearly
to realize the benefits of increased agility twice our investment in fiscal 2016—with
and lower costs. We are working with the majority of our acquisitions in the New.
Hess, a leading global independent energy
company, to implement a cloud-based, For Accenture, acquisitions are an engine
as-a-service operating model. With our to drive organic growth by enhancing our
cloud solutions, analytics and automation, differentiation in the marketplace. In fiscal
Hess is increasing efficiency and agility 2017, key acquisitions in digital included
across its asset base while benefiting from SinnerSchrader, a digital agency in Germany,
consumption-based pricing. and Paris-based OCTO Technology, a leading
digital consulting firm. In cloud, we acquired
• Security—We are working with clients DayNine, one of the largest providers of
to deliver comprehensive solutions spanning Workday solutions, and Phase One, a leader
strategy development, risk management, in Salesforce solutions for US federal clients.
cyber defense, digital identity, application And in security, we acquired Arismore, a
security and managed security services. French company specializing in identity and
For a global retailer, we are modernizing access management, and iDefense, a cyber
its digital identity management system, threat intelligence business.
embedding artificial intelligence, robotics
process automation, chatbots and other
advanced capabilities to enhance security,
increase productivity and get products “Our very strong performance in fiscal
into stores faster.
2017 clearly demonstrates that we are
We are always looking ahead to anticipate executing our growth strategy in a
the next big waves of growth, in areas
such as artificial intelligence, blockchain,
durable and sustained way.“
augmented reality and quantum computing.
And we are already integrating these
technologies into innovative solutions for We strengthened our capabilities in New IT,
many of our clients. Together with 1QBit, including Agile development methodologies,
a quantum software firm, we recently collabo- with the acquisitions of SolutionsIQ in the
rated with Biogen, the biotech company, United States and Concrete Solutions in Brazil.
to develop a new quantum-enabled molecular In addition, we continue to build our expertise
comparison application that could dramat- in key industries with acquisitions such as Kurt
ically speed up drug discovery for complex Salmon in retail, InvestTech in capital markets,
neurological conditions. and Seabury Group in aviation.

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We also continue to make significant invest- innovation and delivering high-quality services
ments in our unique Accenture Innovation to clients. That is why attracting the very best
Architecture. Leveraging specialized people and investing to further develop
capabilities across the company—from their skills are among our highest priorities.
research, ventures and labs to studios,
innovation centers and delivery centers— In fiscal 2017, we invested $935 million in
we are pioneering new ways of collaborating learning and professional development for
with clients to co-create, scale and deliver our employees, including substantial invest-
disruptive, cutting-edge solutions. ments in re-skilling to help them stay relevant
in key areas such as cloud, artificial intelli-
As part of our innovation-led approach, gence and robotics. In addition, in just over
we continue to open new facilities around 18 months, we trained more than 160,000
the world. In fiscal 2017, we opened 16 Liquid people in New IT, including automation,
Studios—where we accelerate software devel- Agile development and intelligent platforms.
opment—and eight delivery centers as well as
innovation hubs in Bengaluru and Houston, At Accenture, we have an unwavering
which bring together multiple elements of our commitment to inclusion and diversity, and
Innovation Architecture. we offer an inclusive environment regardless
of ethnicity, religion, gender, sexual orien-
We also opened The Dock in Dublin, a multidis- tation, age or disability. With our focus on
ciplinary research and incubation hub, where gender equality, we are pleased that women
the entire Innovation Architecture comes to life. now represent more than 40 percent of our
The Dock is a launch pad for more than 200 total workforce. Quite simply, our rich diver-
designers, developers, researchers and experts sity makes Accenture stronger, smarter and
in artificial intelligence, advanced analytics, more innovative.
augmented reality and the Internet of Things
to create and rapidly prototype innovative We are also committed to achieving our
solutions for our clients. vision of improving the way the world works
and lives—from closing employment gaps
Accenture Labs, which celebrated its 30th to advancing sustainable economic growth.
anniversary during the year, is applying With our global capabilities, digital experience
technology not just for clients, but also to and innovation mindset, we develop solutions
solve complex social challenges through its that address a wide range of social challenges.
“Tech4Good” initiative. Our team in Bengaluru
developed an artificial intelligence smart- By using technology to scale our impact,
phone solution that delivers real-time narration we are well on our way to achieving our
to help the blind navigate the world and live Skills to Succeed goal of equipping more
more productive lives. than 3 million people by 2020 with the skills
to get a job or build a business. And through
our commitment to environmental sustain-
Our People and Our Communities ability, we continue to improve our energy
efficiency and to decrease per-employee
As a professional services company, Accenture’s
carbon emissions by leveraging the latest
people ultimately make the difference in driving
collaborative technologies.

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We are especially proud that Accenture was
recognized for the second year in a row on
FORTUNE’s Change the World list for our use
of data analytics to help health care clients
save patients’ lives. In addition, we were
pleased to be recognized once again by
FORTUNE as one of the “100 Best Companies
to Work For,” and by Ethisphere as one of the
“World’s Most Ethical Companies.”

In closing, I want to thank all Accenture

people for their dedication and passion
in delivering value for our clients and our
company. We finished fiscal 2017 with strong
momentum, positioning us well for the new
fiscal year. With our highly differentiated
capabilities and focused investments in the
New—together with our disciplined manage-
ment of the business—I am confident in
our ability to continue driving sustainable,
profitable growth.

Pierre Nanterme
Chairman & CEO
October 26, 2017

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We delivered a durable and balanced
performance in fiscal 2017 as we continued
rotating to “the New“ — digital, cloud
and security services.
Twelve months ended August 31, 2017

NET REVENUES NEW BOOKINGS

$34.9B $37.4B
An increase of 7 percent in local An increase of 6 percent in
currency and 6 percent in US dollars local currency and in US dollars
from fiscal 2016. Includes $18 billion from fiscal 2016
from “the New”— an increase of
about 30 percent in local currency

DILUTED EARNINGS PER SHARE OPERATING MARGIN

$5.44 GAAP 13.3% GAAP

After excluding a $0.47 pension After excluding a 150 basis-point

settlement charge in fiscal 2017 and impact from a pension settlement
$1.11 in gains on the sale of businesses charge, adjusted operating margin
in fiscal 2016, adjusted EPS of $5.91 was 14.8 percent, an expansion of
increased 11 percent from $5.34 20 basis points from fiscal 2016
in fiscal 2016

FREE CASH RETURNED

CASH FLOW TO SHAREHOLDERS

$4.5B $4.2B
Defined as operating cash flow Defined as cash dividends
of $5.0 billion net of property and of $1.57 billion plus share
equipment additions of $516 million repurchases of $2.65 billion

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Comparison of Cumulative Total Return
August 31, 2012 —  $300

August 31, 2017

Accenture vs. S&P 500 $250
Stock Index and S&P 500
Information Technology
$200
Sector Index
The performance graph to the right shows the
cumulative total shareholder return on our Class A $150
shares for the period starting on August 31, 2012,
and ending on August 31, 2017, which was the end
of fiscal 2017. This is compared with the cumula- $100
tive total returns over the same period of the S&P
500 Stock Index and the S&P 500 Information
Technology Sector Index. The graph assumes that, $50
on August 31, 2012, $100 was invested in our Class
A shares and $100 was invested in each of the
other two indices, with dividends reinvested on the $0
ex-dividend date without payment of any commis- 2012 2013 2014 2015 2016 2017
sions. The performance shown in the graph
represents past performance and should not be
Accenture S&P 500 Stock Index S&P 500 Information Technology Sector Index
considered an indication of future performance.

Index Prices as of August 31

2012 2013 2014 2015 2016 2017

Accenture $100 $120 $138 $164 $205 $238

S&P 500 Stock Index $100 $119 $149 $149 $168 $195

S&P 500 Information $100 $105 $141 $144 $171 $225

Technology Sector Index

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AWARDS AND
RECOGNITION
RECOGNIZED AMONG RANKED NO. 24 ON RANKED NO. 272 ON

FORTUNE’s World’s Most Barron’s 500 Forbes’ Global 2000

Admired Companies marking 15 consecutive years marking 14 consecutive years
for 15 consecutive years; and two as the top-ranked
ranked No. 1 in IT Services company in industry sector
category for four years

RANKED NO. 305 ON RANKED NO. 37 ON RECOGNIZED IN

FORTUNE’s Global 500 Interbrand's Best CDP's Climate

marking 16 consecutive years Global Brands Change Report
marking 16 consecutive years as a leading company for
reducing emissions and
mitigating climate change

INCLUDED ON INCLUDED ON DEBUTED AT NO. 53 ON

Dow Jones Sustainability FORTUNE’s Barron’s 100 Most Respected

Index North America and Change the World list American Companies
FTSE4GOOD Global Index of the 50 best companies
for 13 consecutive years putting purpose at the center
of their business strategies

RECOGNIZED AMONG INCLUDED ON RANKED NO. 12 ON THE

Ethisphere's World's Most FORTUNE’s 100 Best Thomson Reuters

Ethical Companies Companies to Work For Diversity & Inclusion Index
for 10 consecutive years for nine consecutive years marking two consecutive years

RECOGNIZED ON JOINED RECEIVED A PERFECT SCORE ON

DiversityInc's Top 50 Working Mother's Human Rights Campaign's

Companies for Diversity 100 Best Companies Corporate Equality Index
for 11 consecutive years Hall of Fame each year since 2008
and six in the top 15 recognizing 15
consecutive years
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Stock listing Accenture discloses information materially from what is expressed
about “the New”—digital, cloud and or forecast in these forward-looking
Accenture plc Class A ordinary shares security services—to provide addi- statements. Risks, uncertainties and
are traded on the New York Stock tional insights into the company’s other factors that might cause such
Exchange under the symbol ACN. business. Net revenues for the New differences, some of which could be
are approximate, require judgment to material, include, but are not limited
allocate revenues for arrangements to, the factors discussed in our Annual
Available information with multiple offerings and may be Report on Form 10-K and Quarterly
modified to reflect periodic changes Reports on Form 10-Q (available
Our website address is accenture.com.
to the definition of the New. through the Investor Relations section
We use our website as a channel of
of our website at investor.accenture.
distribution for company information.
com) under the sections entitled
We make available free of charge on Trademark references
“Risk Factors.” Our forward-looking
the Investor Relations section of our
Rights to trademarks referenced statements speak only as of the
website (investor.accenture.com)
herein, other than Accenture trade- date of this letter or as of the date they
our Annual Report on Form 10-K,
marks, belong to their respective are made, and we undertake
Quarterly Reports on Form 10-Q,
owners. We disclaim proprietary no obligation to update them.
Current Reports on Form 8-K and
all amendments to those reports as interest in the marks and names
soon as reasonably practicable after of others.
Reconciliation of
such material is electronically filed
non-GAAP measures
with or furnished to the Securities and
Exchange Commission (the “SEC”)
Forward-looking statements
This letter contains certain non-GAAP
pursuant to Section 13(a) or 15(d) of
and certain factors that
(Generally Accepted Accounting
the Securities Exchange Act of 1934 may affect our business
Principles) measures that our
(the “Exchange Act”). We also make management believes provide our
We have included in this letter
available through our website other shareholders with additional insights
“forward-looking statements” within
reports filed with or furnished to the into Accenture’s results of operations.
the meaning of Section 27A of the
SEC under the Exchange Act, including The non-GAAP measures in this letter
Securities Act of 1933 and Section
our proxy statements and reports are supplemental in nature. They
21E of the Exchange Act relating to
filed by officers and directors under should not be considered in isolation
our operations, results of operations
Section 16(a) of the Exchange Act, as or as alternatives to net income as
and other matters that are based on
well as our Code of Business Ethics. indicators of company performance,
our current expectations, estimates,
Financial and other material informa- to cash flows from operating activ-
assumptions and projections. Words
tion regarding Accenture is routinely ities as measures of liquidity, or to
such as “will,” “expect,” “believe” and
posted on and accessible at investor. other financial information prepared
similar expressions are used to iden-
accenture.com. We do not intend for in accordance with GAAP. Recon-
tify these forward-looking statements.
information contained in this letter or ciliations of this non-GAAP financial
These statements are not guarantees
on our website to be part of the Annual information to Accenture’s financial
of future performance and involve
Report on Form 10-K. This letter and statements as prepared under GAAP
risks, uncertainties and assumptions
our Annual Report on Form 10-K for are included in this letter.
that are difficult to predict. Forward-
the fiscal year ended August 31, 2017,
looking statements are based upon
together constitute Accenture’s annual
assumptions as to future events that
report to security holders for purposes
may not prove to be accurate. Actual All amounts throughout this letter are stated
of Rule 14a-3(b) of the Exchange Act. in US dollars, except where noted.
outcomes and results may differ