01—Abstract
Summary
Summary of the 10-K filed October 29, 2013. Cited figures are marked; the original filing is the authoritative source.
Accenture plc's 2013 10-K filing highlights a year of modest revenue growth, with net revenues reaching $28.56 billiona, a 3% increase in USD and 4% in local currency compared to fiscal year 2012.
The company's strategy continues to focus on industry and technology differentiation, as well as geographic expansion, particularly in emerging markets. While outsourcing services showed stronger growth (9%b in local currency), consulting revenues experienced a slight decline (1% in USD, 1% in local currency) due to clients deferring spending and a shift towards longer-term contracts. The filing details Accenture's operational structure across five segments and its three growth platforms: management consulting, technology, and business process outsourcing.
The company emphasizes its Global Delivery Model as a key differentiator, leveraging a worldwide network of over 182,000 professionals to deliver cost-effective solutions. Investments in emerging technologies like analytics, cloud computing, and mobility are ongoing. The company also highlights its commitment to research and innovation, with significant R&D spending.
Key financial events include a substantial $274 millionc in reorganization benefits and a $243 million tax benefit related to U.S. federal tax audits, which significantly boosted net income and diluted EPS for fiscal year 2013. The company returned significant capital to shareholders through dividends and share repurchases, with an additional $5.0 billion authorized for repurchases in September 2013. Despite facing a competitive market and economic uncertainties in certain regions like Europe and Brazil, Accenture maintained strong operational discipline, as evidenced by stable gross and operating margins (excluding special items), and a continued focus on talent development.
02—Key points
Key Highlights
- Accenture reported net revenues of $28.56 billion for fiscal year 2013, a 3% increase in U.S. dollars and 4% in local currency compared to fiscal year 2012.
- Outsourcing services demonstrated robust growth with a 9% increase in local currency, while consulting services saw a slight decline of 1% in local currency.
- The company continued to invest in strategic initiatives such as analytics, cloud computing, mobility, and digital marketing, including acquisitions in the latter.
- Accenture's Global Delivery Network is a significant operational asset, comprising over 182,000 professionals across more than 50 delivery centers worldwide.
- Fiscal year 2013 financial results were significantly impacted by a $274 million reorganization benefit and a $243 million tax benefit from U.S. federal tax audit settlements.
- The company returned substantial capital to shareholders through dividends and share repurchases, with a $5.0 billion share repurchase authorization approved in September 2013.
- Accenture operates across five distinct operating groups, serving a diverse range of industries globally, with a strategy focused on industry and technology differentiation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Accenture plc kept $0.11.
- Revenue$30.39B100.0%
- Cost of revenue−$21.01B69.1%
- Gross profit$9.38B30.9%
- Operating costs−$5.05B16.6%
- Operating income$4.34B14.3%
- Interest, other & tax−$1.06B3.5%
- Net income$3.28B10.8%
Where FY2013 revenue went
$30.39B- Cost of revenue: $21.01B, 69% of revenue
- Other operating costs: $4.33B, 14% of revenue
- Net income: $3.28B, 11% of revenue
- R&D: $715.1M, 2.4% of revenue
- Interest, other & tax: $1.06B, 3.5% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed October 29, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $30.39B$29.78B | +2.1% |
| Cost of Revenue | $21.01B$20.79B | +1.1% |
| Gross Profit | $9.38B$8.99B | +4.4% |
| R&D Expenses | $715.09M$559.61M | +27.8% |
| Operating Expenses | $26.06B$25.91B | +0.6% |
| Operating Income | $4.34B$3.87B | +12.1% |
| Interest Expense | $14.04M$15.06M | −6.8% |
| Net Income | $3.28B$2.55B | +28.5% |
| EPS (Basic) | $5.08$3.97 | +28.0% |
| EPS (Diluted) | $4.93$3.84 | +28.4% |
| Shares Outstanding (Basic) | 645.54M643.13M | +0.4% |
| Shares Outstanding (Diluted) | 713.34M727.39M | −1.9% |
05—Questions
Frequently Asked Questions
What were the main drivers of Accenture's revenue growth in fiscal year 2013?
In fiscal year 2013, Accenture's revenue growth was primarily driven by its outsourcing services, which saw a 9% increase in local currency, particularly in the Financial Services, Products, and Health & Public Service sectors. While consulting revenues saw a slight decrease, overall net revenues grew by 3% in USD to $28.56 billion, supported by a strategy focused on industry and technology differentiation and geographic expansion.
How did macroeconomic conditions and client spending patterns affect Accenture's performance?
Accenture noted that macroeconomic conditions, particularly in certain European countries and Brazil, led to lower-than-expected demand and impacted revenue growth. Clients continued to focus on cost savings and operational efficiency, leading to a slowdown in spending on some consulting services and a shift towards longer-term outsourcing contracts. The company actively managed its costs and resource deployment to navigate these uncertainties.
What were the key financial events or benefits recorded in fiscal year 2013?
Accenture recorded significant one-time benefits in fiscal year 2013, including $274 million in reorganization benefits related to historical restructuring and $243 million as a tax benefit from settlements of U.S. federal tax audits for fiscal years 2006-2009. These items substantially boosted net income and diluted earnings per share for the year.
How is Accenture returning capital to its shareholders?
Accenture returned capital to shareholders through both dividends and share repurchases. For fiscal year 2013, dividends per share totaled $1.62. The company also actively engaged in share repurchases, and in September 2013, its Board of Directors approved an additional $5.0 billion in share repurchase authority, bringing the total outstanding authorization to approximately $6.96 billion.
06—Continue