10-KPeriod: FY2015

Accenture plc Annual Report, Year Ended Aug 31, 2015

Filed October 30, 2015For Securities:ACN

Summary

Accenture plc's 2015 10-K filing highlights a fiscal year ending August 31, 2015, marked by steady revenue growth in both reported and local currencies. The company generated $31.0 billion in net revenues, a 3% increase year-over-year, demonstrating resilience in a competitive global market. This growth was primarily driven by strong demand across all five operating groups, particularly in consulting services which saw a 3% increase in U.S. dollars and 11% in local currency, and outsourcing services which grew 4% in U.S. dollars and 11% in local currency. Key growth drivers included digital transformation initiatives, cloud enablement, and cost optimization services for clients. Despite a strengthening U.S. dollar impacting reported U.S. dollar growth by approximately 7.5% compared to local currency growth, Accenture maintained its operating margin at 14.3%. The company continued to invest in talent and strategic assets, reflecting its commitment to differentiation and competitiveness. The filing also underscores Accenture's robust global delivery model as a key competitive advantage and its ongoing efforts to adapt to evolving technology landscapes and client needs.

Financial Statements
Beta
Revenue$32.91B
Cost of Revenue$23.11B
Gross Profit$9.81B
R&D Expenses$625.54M
Operating Expenses$28.48B
Operating Income$4.44B
Interest Expense$14.58M
Net Income$3.05B
EPS (Basic)$4.87
EPS (Diluted)$4.76
Shares Outstanding (Basic)626.80M
Shares Outstanding (Diluted)678.76M

Key Highlights

  • 1Accenture reported net revenues of $31.0 billion for fiscal year 2015, representing a 3% increase in U.S. dollars and an 11% increase in local currency compared to fiscal year 2014.
  • 2Revenue growth was observed across all five operating groups, with Communications, Media & Technology, and Health & Public Service showing particularly strong local currency growth (16% and 12% respectively).
  • 3Both consulting and outsourcing segments experienced growth in local currency (11% for both), indicating broad-based demand for Accenture's services.
  • 4The company maintained a stable operating margin of 14.3% for fiscal year 2015, despite the impact of foreign currency fluctuations and a pension settlement charge.
  • 5Accenture's Global Delivery Network, comprising approximately 257,000 professionals across over 50 delivery centers, continues to be a key competitive differentiator and enabler of cost-effective solutions.
  • 6Investments in strategic acquisitions, assets, branding, thought leadership, and talent development were emphasized as crucial for future differentiation and competitiveness.
  • 7The company repurchased approximately $2.27 billion of its Class A ordinary shares in fiscal year 2015 as part of its ongoing capital allocation strategy.

Frequently Asked Questions

In fiscal year 2015, Accenture reported net revenues of $31.0 billion, a 3% increase in U.S. dollars and an 11% increase in local currency compared to fiscal year 2014. This growth was driven by strong demand across all operating groups and both consulting and outsourcing services.

A strengthening U.S. dollar against other currencies negatively impacted reported U.S. dollar revenue growth. For fiscal year 2015, unfavorable currency translation resulted in reported U.S. dollar revenue growth being approximately 7.5% lower than the growth achieved in local currency.

Key risks include adverse effects from volatile economic conditions, a reduction in client demand for services, intense competition, cybersecurity threats, the need to adapt to rapid technological changes, foreign currency exchange rate fluctuations, and potential legal and regulatory challenges, particularly in government contracting. The company also highlighted risks related to managing its large global workforce and maintaining effective internal controls.

Accenture emphasizes attracting, retaining, and developing talent globally. As of August 31, 2015, the company employed over 358,000 people. It focuses on continuous training, career development, and maintaining a balance between workforce supply and client demand, utilizing its Global Delivery Network and managing attrition rates.