Adam Frisch - UBS Moshe Katri - Cowen and Co. Rod Bourgeois - Bernstein Julie Santoriello - Morgan Stanley Julio Quinteros - Goldman Sachs Edward Caso - Wachovia David Ridley-Lang - Bear Stearns Abhi Gami - Banc of America Securities George Price - Stifel Nicolaus Tien-tsin Huang - JP Morgan

Welcome to Accenture's fourth quarter and full year fiscal 2007 earnings conference call. (Operator Instructions) I will now turn the conference over to Richard Clark, Managing Director of Investor Relations. Please go ahead, sir. Richard Clark: Thank you, operator and thanks everyone for joining us today on our fourth quarter and full fiscal year 2007 earnings announcement. As the operator just mentioned, I am Richard Clark, Managing Director of Investor Relations. With me this afternoon are Bill Green, our Chairman and Chief Executive Officer; Pam Craig, our Chief Financial Officer; and Steve Rohleder, our Chief Operating Officer. We hope you had an opportunity to review the news release we issued a short time ago. Let me quickly outline the agenda for today's call. Bill will begin with an overview of our results. Pam will take you through the financial details, including the income statement and balance sheet and Steve will add some operational perspective. Pam will then provide our business outlook for fiscal year 2008 and Bill will close the presentation before we take questions. As a reminder, when we discuss revenues during today's call, we're talking about revenues before reimbursements, or net revenues. Some of the matters we will discuss on this call are forward-looking, and you should keep in mind that these forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, general economic conditions, and those factors set forth in today's press release and discussed under the Risk Factors section of our annual report on Form 10-K and other SEC filings. Accenture assumes no obligation to update the information presented on this conference call. During our call today we will…

Your first question comes from Adam Frisch - UBS. Adam Frisch - UBS: A great job on the quarter and the year. I just want to ask two questions. First on free cash flow, a monster year in '07; '08 expected to be flat. What are some of the big puts and takes between '07 and '08? Hopefully you will beat it in '08 like you did in '07, but I just wanted to know what was a little higher or lower in '07 that could impact the comp in '08? Pam Craig : You probably remember that we guided last year to $1.6 billion to 1.8 billion in the first quarter. The outstanding continued performance on DSOs really made us be able to bring that up. I think that, as you look at next year, I mean, we take into account what cash the business is going to generate. We made the DSO assumption a little more conservative than where we were at year end. We expect some uptick in capital because we have to fund the working capital and the growth. We will have higher annual bonus payments for this past year than we did for last year. Finally, you have to take into account all the tax payments we may have. Adam Frisch - UBS: On the bookings side, flat expectations for next year, off again, another monster year in '07. But how do revenues grow in the 9% to 12% range if bookings are going to be relatively flat, and if the mix between consulting and outsourcing is going to be about the same? Steve Rohleder: I think the way you have to look at it is go back to the book to bill ratio that we talked about as well. We got well over a year in backlog in excess of 1.1 for consulting, and as Pam said, we're targeting 1.2 for outsourcing. Pam Craig : At least. Steve Rohleder: At least 1.2 for outsourcing. So I think the bookings target the year is well within the range to allow us to grow at the revenue clip that we want. Adam Frisch - UBS: Operating margin expansion, Pam. Still assuming the same kind expansion in '08, the 30 to 50 basis points or so, and just keep moving the line there? Pam Craig : I think it is more like 10 to 40. But, yes, we're going to just keep pushing on all the same levers to expand moderately. Adam Frisch - UBS: Any buybacks or additional buybacks assumed in the '08 EPS guidance, or would that all be upside? Pam Craig : There are some assumed in there, yes. Adam Frisch - UBS: Can you say how much? Pam Craig : No.

Your next question comes from Moshe Katri - Cowen and Company. Moshe Katri - Cowen and Company: Let me add my congratulations. Can you talk a bit about looking at your fiscal '08 guidance what is embedded in your outlook for pricing trends next year in terms of growth? On the EBIT margins front, did we fix some of the challenges or the issues we had in the financial services vertical? Thanks. Bill Green: I will address both of those. First of all from a pricing standpoint, Moshe, we are continuing to push through pricing increases in specific areas. As a bit of context, we had 300 of our leaders together over the last two weeks to take them through the operations agenda for next year. Pricing was top of the list in terms of margin expansion. While I won't comment specifically on the assumptions that we have made, I will tell you that the areas that we are focused on , we continue to focus on are management consulting, technology consulting, and specialty skills areas of systems integration. On your second question around financial services, I do feel like we made some really good progress in Q4 on the operational inefficiencies that we had mentioned in the prior quarter. We're watching it very closely as we move forward into FY '08. Moshe Katri - Cowen and Company: Finally, you mentioned 71,000 people in your global delivery network. Can you break them down by India, the Philippines and then other? Thanks. Bill Green: I think right now we're about 35,000 in India. I don't think we have broken it down beyond there. We may have said at one point the Philippines, and we can get back to you with the break out of the different locations.

Your next question comes from Rod Bourgeois - Bernstein. Rod Bourgeois - Bernstein: I wanted to talk quickly about the bookings. The midpoint of your guidance reflects 14% growth so that actually sounds like a very good bookings number if you just hit the midpoint of your target. The question is a lot of the investor concern in the world today is around the U.S. economy. In light of the concerns and uncertainties about the economy, you're giving us a bookings number that is pretty good growth here. Where does that confidence come from? Can you talk about the regional mix of the bookings guidance, or maybe the mix between consulting and outsourcing, and give us a little visibility as to where that confidence comes from? Bill Green: Let me just give you a sense for what we look at. We really look at two things. First is externally what is going on. The fact is if you stand back, we have a great global economy we are operating in, and we have a good U.S. economy. I spent last week at the business roundtable, 160 CEOs from U.S. companies, and we had a pretty good frame of reference for what is going on there. But also I think as people look at our company, you can't lose sight of the fact that two-thirds of it is not in the United States. I think that is just an important thing to dial into. I think the second thing is we look at our business, and I mentioned in my comments that we had just done a thorough review, because it was just part of our normal leadership meeting and we happened to do it the same week as earnings. We went through our five operating groups and each one, including…

Your next question comes from Julie Santoriello - Morgan Stanley. Julie Santoriello - Morgan Stanley: I wanted to dig in a little bit more on SG&A, impressive improvements in the fourth quarter and throughout fiscal '07. Can you talk about some of the specific drivers that really helped in '07, and those that you expect to continue in '08? It sounds like not as many things to tap into, but still some. Steve Rohleder: For '07 it is basically three buckets of outcomes that contributed to the 110 basis point reduction. First of all, we set a pretty aggressive target in moving some of our corporate functions offshore. So we are operating in lower cost locations, and we made some great progress there. I think looking ahead for '08, we still have some room to continue that shift. I would tell you there's a couple of functions that did very well that I probably don't see moving much more. There's a couple that I can see us moving a little bit more aggressively. So that will have an impact. The second area was sales effectiveness and efficiency, basically how we go to market and how we spend our sales dollars. I think toward the second half of '07 we actually began to see the benefit of some of the processes that we had put in place at the beginning of the fiscal year. I can tell you that we are focused on continuing to drive efficiency around our business development and sales activities into '08. The third area is consolidated procurement. We are continuing this journey of driving consolidated spend under management within Accenture. Every percentage point we are able to achieve there obviously saves us money from a SG&A standpoint. So we made a lot of progress in '07.…

Your next question comes from Julio Quinteros - Goldman Sachs. Julio Quinteros - Goldman Sachs: If you guys could just talk a little bit about gross margins as it relates to fiscal year '08 outlook. Assuming that some of the levers on the SG&A side are kind of reaching their capacity here, how do we get the gross margin item in the model working back in the right direction from here? Pam Craig : As I mentioned, we are continuing to focus on contract economics, pricing, cost management, delivery efficiencies. That is where it all starts. That is most of what is in gross margin. Of course the bonus is in there too. You saw what we did this year, because we did accrue and we will pay more bonus this year. But nonetheless fundamentally it is about contract economics. Julio Quinteros - Goldman Sachs: Does that also work hand in hand with type of work that you're doing, meaning more consulting versus outsourcing at this point in time? Pam Craig : Not necessarily. We focus on it across the board. Julio Quinteros - Goldman Sachs: On an unrelated note, but this is something that I think we have talked about in the past, if you could breakup the consulting business in general terms, or in some specific percentages if you can provide that, what is the actual discretionary part of your consulting business? It has got a lot of different items in there, so help us understand, assuming that there is a risk of deceleration, etc., what would be the part that will be the most discretionary subject to getting cut or anything along those lines? Bill Green: In all honesty, if you stand back and look at the business, and we do this routinely, the most discretionary stuff…

Your next question comes from Edward Caso - Wachovia. Edward Caso - Wachovia: Let me add my congratulations. Can you talk a little bit about Europe and what we're hearing as a growing acceptance of outsourcing and offshore, and how Accenture is positioned for that? Particularly with maybe facilities in Eastern Europe or maybe even Russia? Steve Rohleder: I think you have to separate two trends. One is the UK from the Continental European trend. In the UK for the last three or four years we actually supported a number of UK clients through the India Center because of the English language thing. As the trend has moved now into Continental Europe, what we have seen is an expansion of our centers in Prague, for example, in what they call Central Europe, our Central European locations, because of the ability of those centers to focus on the multi-language capability. A lot of the work that is coming up now through Central Europe has migrated from just the simple application outsourcing to the back office, the human resource, the finance, the procurement, BPO functions. As you move that, you have to be able to service those clients with multi-language capability. And I think two years ago when we made the decision to invest in Romania, to invest in Prague and other centers through Central Europe, we knew exactly what we're doing to support that trend, and we got ahead of it. We made the investment. We have the people in place now to support it. So I think we've got a strong network there, and we are going to be able to support the clients that want to move in that direction. Edward Caso - Wachovia: Given the European Union rules it is very easy for the people in the former…

Your next question comes from David Ridley - Bear Stearns. David Ridley - Bear Stearns: Will the planned bill rate increases that you're doing cover your planned pay rate increases for this fiscal year, including any planned accrual of annual bonus? Steve Rohleder: Yes, they will. David Ridley - Bear Stearns: That is all in the guidance? Steve Rohleder: Yes. You might remember that we make sure that we keep our ability to recover in sync, just as a an operating philosophy of our company.

Your next question comes from Abhi Gami - Banc of America Securities. Abhi Gami - Banc of America Securities: A very good quarter. You mentioned earlier that the outsourcing duration was also down. You are not concerned about the booking trend. Can you quantify what the duration did year-over-year? Was it down more than the 4.5% or so that outsourcing bookings were down? Steve Rohleder: No. I would go back and look, but the average duration has been on a trend line over the last two years, as we have watched it. I think it is also a function of us just making sure that we're selecting projects that fit that profile. It is a combination both of the market and our selection, but I would say it is not in excess of 4.5%. Abhi Gami - Banc of America Securities: How about on the consulting side, are you seeing more multiyear type deals signed there in general on a year-over-year basis? Steve Rohleder: Yes, we are. Especially in the SI area where we're doing more and more global ERP rollouts. In our products and resources operating groups we have a substantial amount of large global ERP rollouts and those typically run two, three years. Abhi Gami - Banc of America Securities: Another question on Asia Pacific. You mentioned six quarters now of double-digit growth plus. Are you properly sized in the Asia Pacific market, say Japan and Pacific Rim? Do you need to make, or are you planning to make any proactive investments to expand your footprint there? How do you feel your competitive position within that market now that things are ramping up? Steve Rohleder: I think we are extremely competitively positioned. Again, from my trip to Australia, our leadership in that country is very bullish on our ability to win both consulting and outsourcing work. We are seeing accelerated growth now in Singapore, which is becoming our third-largest hub, if you will, in Asia Pacific. The Japanese have moved very aggressively from what used to be just a consulting business now into both outsourcing in SI. We're planning some investments to move some leadership and some senior executives in to support that growth, but we're having no trouble at all attracting people on the ground to help us with the work.

Your next question comes from George Price - Stifel Nicolaus. George Price - Stifel Nicolaus: Thanks very much for taking a couple of questions, and I will congratulate you as well. Pam, you mentioned 4% to 5% currency benefit looking into next quarter. Can you give us any thoughts just where currencies are now, if things sort of stay as is what that could look like on top of the 9% to 12%? Pam Craig : You can do the math as well I. We're going to give you our estimate for the next quarter or each quarter. That is really we think the best we ought to be doing at this point and then of course we guide in local currency. George Price - Stifel Nicolaus: I was wondering if you had gone through that process yourselves. Looking at the revenue growth guidance that you have given, can you talk at all about the vertical, the contributions of the verticals to growth? For example, the financial services grew pretty significantly. One would think that it is likely to slow, for no other reason just tougher comps. What is the most likely do you think on a vertical basis to pick up the slack, and why? Steve Rohleder: I think we will see an acceleration of the growth in our communications and high-tech group. I think we will see continued strong growth in products and resources based on the companies and the profiles of the organizations and clients they are serving. I think financial services will have strong growth. We put a prudent plan in place for them. In public service or government I think we will see some accelerated growth in that operating group, as well as because we're coming off a pretty slow year, if you will. So…

Your next question comes from Tien-tsin Huang - JP Morgan. Tien-tsin Huang - JP Morgan: Just hoping to get a few people or headcount metrics that I might have missed. Did you give your assumptions around overall wage inflation and headcount growth in fiscal '08? Steve Rohleder: No, we didn't. I will just tell you that the increases that we put through were slightly ahead of what we did last year. Tien-tsin Huang - JP Morgan: On the wage inflation front, so we should expect a similar rate in '08? Steve Rohleder: Correct. Tien-tsin Huang - JP Morgan: Are you seeing any resistant overall on the hiring side? It seems like the sheer number of the growth of people is getting quite large at Accenture. Steve Rohleder: It is. I look every month, I look at our acceptance rates. I have seen no dip in the acceptance rates, which is a good indication frankly of how we're able to attract both experienced people and new young professionals starting at the bottom of our organization. So we're not having any trouble at all the attracting the number of recruits that we need. Tien-tsin Huang - JP Morgan: Just two more quick questions. Margins in the outsourcing business, can you give us some read there on where we are on the margin curve in outsourcing, assuming that we are seeing some maturation of the portfolio? Steve Rohleder: I don't think we break out margins. Tien-tsin Huang - JP Morgan: Understood. Steve Rohleder: I don't think we ever have. Tien-tsin Huang - JP Morgan: Just directionally. Steve Rohleder: There's pockets for improvement and there's pockets of great performance in our outsourcing portfolio, and I am satisfied with where we are at right now. Tien-tsin Huang - JP Morgan: Last one on the government…