Accenture Plc (ACN)Analysts: Chris Landqvist, Justin Pippitt, Kelli Coldiron & Wei Pi

Macro Economic Outlook

Lagging, Coincident, Leading Indicators

Business Cycle Sectors

Current Portfolio Sector Weights

Company Overview

*3 Key Services: Global management consulting, technology services and outsourcing company

*5 Operating Groups:Communications and high tech, financial services,

health and public service, products, and resources

*236,000 employees in 54 countries

*Clients:Fortune Global 500, Fortune 1000, and mid-size

companies and governments

*Generated net revenues of US$25.5 billion in 2011 fiscal year.

Overview

Revenues

Historical Performance Analysis

3-Year Compound Average Growth Rates

2007 2008 2009 2010 2011

2.06 2.77 2.55 2.79 3.530.42 0.50 0.75 0.83 1.132.74 3.51 3.28 3.24 3.992.31 2.62 2.82 2.80 2.35

Per Share Metrics

Earnings

NOPATFree Cash Flow

Dividends

Per Share Metrics

-20%

-10%

0%

10%

20%

30%ACN ^SPX

Cumulative Stock Returns vs. Market

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2006 2007 2008 2009 2010 2011

Total Revenue Net Income

Total Revenue and Net Income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2006 2007 2008 2009 2010 2011

Total Revenue Net Income

Total Revenue and Net Income

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2006 2007 2008 2009 2010 2011

Total Revenue Net Income

Total Revenue and Net Income

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500

2006 2007 2008 2009 2010 2011

EBITDA EBIT

Operating Profit

Earnings Per Share and Dividends Per Share

Estimated Range

Actual Earnings

Estimated and Actual Earnings Per Share

Gross and Operating Margin

0%

5%

10%

15%

20%

25%

30%

2006 2007 2008 2009 2010 2011

Gross Profit Margin Operating Profit Margin

Gross and Operating Profit Margin

0%2%4%6%8%

10%12%14%16%

2006 2007 2008 2009 2010 2011

Net Profit Margin Free Cash Flow Margin

Net and Free Cash Flow Margin

0%

2%

4%

6%

8%

10%

12%

2006 2007 2008 2009 2010 2011

Earnings Yield Dividend Yield

Earnings and Dividend Yield

0%

0%

0%

1%

1%

1%

1%

2006 2007 2008 2009 2010 2011

Total Debt to Assets Long-Term Debt to Equity

Total Debt to Assets, Long-Term Debt to Equity

0%

10%

20%

30%

40%

50%

60%

2006 2007 2008 2009 2010 2011

ROA ROE ROIC

Return on Assets, Equity and Capital

Spread WACC

ROIC/WACC Spread

35.3%

Economic and Market Value Added

Porter’s 5 Forces

SP • Numerous suppliers• Price sensitivity is high• Similarity in products

• Low

Porter’s – Supplier Power

SP • Numerous suppliers• Price sensitivity is high• Similarity in products

• Low

BP • Excess demand• High switching costs• Brand name

• Low

Porter’s – Buyer Power

SP • Numerous suppliers• Price sensitivity is high• Similarity in products

• Low

BP • Excess demand• High switching costs• Brand name

• Low

CR • Numerous competitors• Other strong brands• Specialized local competitors

• High

Porter’s – Competitive Rivalry

SP • Numerous suppliers• Price sensitivity is high• Similarity in products

• Low

BP • Excess demand• High switching costs• Brand name

• Low

CR • Numerous competitors• Other strong brands• Specialized local competitors

• High

TS • Lack of uniqueness • Competition more vertical integration

• High

Porter’s – Threat of Substitutes

SP • Numerous suppliers• Price sensitivity is high• Similarity in products

• Low

BP • Excess demand• High switching costs• Brand name

• Low

CR • Numerous competitors• Other strong brands• Specialized local competitors

• High

TS • Lack of uniqueness • Competition more vertical integration

• High

NE • Fairly cheap• Less regulation• Nature of technology

• Medium

Porter’s – Threat of New Entrants

SWOT

S • New contract structure• Increased need from US/EURO• No debt• Internal software solution

SWOT - Strengths

S • New contract structure• Increased need from US/EURO• No debt• Internal software solution

W • Foreign exchange loss• Domiciled in Ireland • Limited ability to protect Intellectual rights

SWOT – Weaknesses

S • New contract structure• Increased need from US/EURO• No debt• Internal software solution

W • Foreign exchange loss• Domiciled in Ireland • Limited ability to protect Intellectual rights

O • Growth in emerging markets• Increased demand for out-sourcing• Global footprint satisfies demand for increased

efficiency

SWOT - Opportunities

S • New contract structure• Increased need from US/EURO• No debt• Internal software solution

W • Foreign exchange loss• Domiciled in Ireland • Limited ability to protect Intellectual rights

O • Growth in emerging markets• Increased demand for out-sourcing• Global footprint satisfies demand for increased

efficiency

T • Qualified workers • Decreased government spending• SAP starts competing same market segment

SWOT - Threats

* ACN competes in the IT sector alongside several other strong players.

*Clients will pay a premium for working with brand name company with a global footprint.

*The nature of technology is volatile but requires low initial capital investment and faces limited government/industry regulation or policies.

*ACN is well positioned to quickly adhere to the needs of their clients worldwide through proprietary software.

*Hiring a skilled workforce is becoming increasingly difficult.With no debt, ACN is well positioned for M&A activity to acquire new talent or technology.

Strategic Position Summary

Forecasts

Income Statement Forecasts

Unadjusted Adjusted

Revenue Growth

Dividend Growth

Income Statement Forecast Graphs

Balance Sheet Forecasts

Balance Sheet Forecasts

Weighted Average Cost of Capital

Over (Under) Valuation Per Share

Dividend Discount and Relative Valuation Models

Intrinsic vs. Current Price

PRVit Scores

PRVit Overall

PRVit Performance and Risk

PRVit vs. Industry and Market

PRVit Return on Capital vs. Cost of Capital

Investment Thesis

Despite slow growth in Total Revenue, ACN has been able to grow EBIT, NOPAT, and EPS during fierce economic conditions. In conjunction with a ROIC to WACC spread of 35.3%, ACN is able to create value for their shareholders while increasing their dividend on a sequential basis. ACN’s global footprint is essential to take advantage of the opportunities in growth markets. The increasing need for improved efficiency in both the U.S. and Europe, currently in a declining economic trend, further strengthens ACN’s position. The negative currency exchange risk is a concern, which partially explains the conservative forecast assumptions for this fundamentally robust corporation. Due to its historical performance, commitment to dividends and low valuation we recommend to BUY ACN.

Investment Thesis

Questions