01—Abstract
Summary
Summary of the 10-K filed October 26, 2010. Cited figures are marked; the original filing is the authoritative source.
Accenture plc's 2010 Form 10-K report highlights a company navigating a recovering global economy following the 2009 downturn.
Net revenues remained relatively flat year-over-year at $21.55 billiona, indicating stabilization after a challenging period. The company's strategic focus for fiscal year 2010 included driving growth through its core business, expanding into new initiatives like analytics and digital marketing, and pursuing geographic expansion, particularly in emerging markets. The report details Accenture's diversified service offerings across five operating groups: Communications & High Tech, Financial Services, Health & Public Service, Products, and Resources.
The company's Global Delivery Network, a key differentiator, continued to be a significant component of its operational strategy, enabling cost-effective service delivery. Despite economic headwinds, Accenture demonstrated resilience, with a notable improvement in operating margin to 13.5%b in fiscal 2010, up from 12.3% in fiscal 2009, partly due to improved cost management and sales-effectiveness models.
02—Key points
Key Highlights
- Accenture maintained stable Net Revenues of $21.55 billion in fiscal year 2010, showing resilience in a post-recession environment.
- The company strategically focused on growth through its core business, new digital initiatives, and geographic expansion into key emerging markets.
- Operating margin improved to 13.5% in fiscal 2010 from 12.3% in fiscal 2009, driven by enhanced cost management and sales effectiveness.
- Accenture continued to leverage its Global Delivery Network, comprising over 116,000 personnel, for efficient and cost-effective service delivery.
- The company reported strong new contract bookings of $24.98 billion in fiscal year 2010, signaling a positive outlook for future revenue growth.
- Accenture continued its commitment to returning value to shareholders through share repurchases and dividends, with $2.92 billion in authorized repurchase capacity remaining as of August 31, 2010.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2010, Accenture plc kept $0.08.
- Revenue$23.09B100.0%
- Cost of revenue−$15.84B68.6%
- Gross profit$7.25B31.4%
- Operating costs−$4.34B18.8%
- Operating income$2.91B12.6%
- Interest, other & tax−$1.13B4.9%
- Net income$1.78B7.7%
Where FY2010 revenue went
$23.09B- Cost of revenue: $15.84B, 69% of revenue
- Other operating costs: $3.96B, 17% of revenue
- Net income: $1.78B, 7.7% of revenue
- R&D: $377.0M, 1.6% of revenue
- Interest, other & tax: $1.13B, 4.9% of revenue
Kept 7.7% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2010filed October 26, 2010Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $23.09B$23.17B | −0.3% |
| Cost of Revenue | $15.84B$16.33B | −3.0% |
| Gross Profit | $7.25B$6.84B | +6.0% |
| R&D Expenses | $376.99M$434.94M | −13.3% |
| Operating Expenses | $20.18B$20.53B | −1.7% |
| Operating Income | $2.91B$2.64B | +10.2% |
| Interest Expense | $14.68M$14.12M | +3.9% |
| Net Income | $1.78B$1.59B | +12.0% |
| EPS (Basic) | $2.79$2.55 | +9.4% |
| EPS (Diluted) | $2.66$2.44 | +9.0% |
| Shares Outstanding (Basic) | 637.17M623.01M | +2.3% |
| Shares Outstanding (Diluted) | 767.01M786.89M | −2.5% |
05—Questions
Frequently Asked Questions
What was Accenture's financial performance in fiscal year 2010?
In fiscal year 2010, Accenture reported net revenues of $21.55 billion, which was flat year-over-year in U.S. dollars and down 2% in local currency. Operating income increased by 10% to $2.915 billion, and the operating margin improved to 13.5% from 12.3% in fiscal year 2009. This improvement was partly attributed to restructuring cost savings from the prior year and enhanced sales-effectiveness models.
What were Accenture's key strategic priorities for fiscal year 2010?
Accenture's strategy for fiscal year 2010 focused on three dimensions: strengthening its core business (consulting, technology, and outsourcing services), driving new business initiatives such as analytics, digital marketing, and cloud computing, and expanding its geographic presence, particularly in strategic growth markets like Brazil, Russia, India, China, South Korea, and Mexico.
How did Accenture's different operating segments perform in fiscal year 2010?
Accenture's five operating groups are Communications & High Tech, Financial Services, Health & Public Service, Products, and Resources. Performance varied, with Financial Services showing 3% net revenue growth in U.S. dollars and 1% in local currency, while Communications & High Tech saw a 5% decrease in U.S. dollars and 7% in local currency. Health & Public Service decreased by 2% in U.S. dollars and 4% in local currency, Products grew 3% in U.S. dollars and 1% in local currency, and Resources grew 1% in U.S. dollars and decreased 2% in local currency.
What is Accenture's approach to service delivery and cost management?
Accenture's Global Delivery Network, comprising over 116,000 personnel across more than 50 delivery centers, is a key differentiator. This model allows for price-competitive, high-quality solutions by leveraging global talent and standardized processes. The company also focuses on cost management through strategic hiring, workforce alignment, and leveraging lower-cost locations within its delivery network to optimize operating expenses.
06—Continue