Accenture 4Q15 Earnings Call Notes

Pierre Nanterme – Chairman and CEO

Competitive environment pretty stable

“We’ve not seen much change in the competitive environment. I think the competition is quite well established in the different businesses we’re operating in from the consulting and strategy with the usual players. Then, you have the technology with the other players and then of course operations, different part of our business. So I guess, the environment is pretty stable with some, I mean, winners and losers and we are investing and driving our business to be part of the winners. But not much to say around the competitive environment, it’s still the usual suspects.”

David Rowland – CFO

Expecting another 4% hit from FX in ’16

“Starting with the first quarter of fiscal ’16, we expect revenues to be in the range of $7.7 billion to $7.95 billion. This assumes the impact of FX will be a negative 8.5% compared to the first quarter of fiscal ’15 and reflects an estimated 6% to 9% growth in local currency. For the full fiscal year ’16, based upon how the rates have been trending over the last few weeks, we currently assume the impact of FX on our results in USD will be negative 4% compared to fiscal ’15.”

Making acquisitions for new capabilities, better expertise and more scale

” we are doing acquisitions for three reasons. I mean, the first one is to accelerate access to capabilities in the new and what we’re calling the new at Accenture is now the combination of digital services, cloud services, security services, all new technologies, if you will, such as cognitive computing, automation, or artificial intelligence. Second is to have access to very deep industry expertise, especially in consulting that is the rational for acquisition of Axia, Javelin, companies consulting deep structure iTRAK, either deep industry expertise in upstream energy in retail. That’s the reason — that’s number two. And the number three would be to scale faster to take the leadership position in the marketplace and by leadership, we mean the Number 1.”

Risk in the macro environment has clicked up a notch or two

“I think, when we look at the macro environment in general, relative to where we were 90 days ago, I would say, relative to where we were at this time last year, the volatility and risk in the macro environment has clicked up a notch or two, and so that’s a factor then.”