2018 Guide to Effective Proxies

2.4 Proxy summary | 67 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES ACCENTURE PLC ACCENTURE 2017PROXYSTATEMENT ProxyStatementSummary HistoricalFinancialPerformance DrivingShareholderValueThroughSustainedFinancialPerformance Forthe3-yearperiodfromtheendoffiscal2014throughfiscal2017,ourperformancedemonstratesourfocuson deliveringshareholdervalue. BROAD-BASEDREVENUEGROWTH 5%CAGR 1 inUSDollars 9%CAGRinlocalcurrency $30.0B $34.9B 2014 2017 NETREVENUES 1 “CAGR”meansCompoundAnnualGrowthRate SUSTAINEDMARGINEXPANSION 100BasisPointContraction(onaGAAPbasis) 50BasisPointExpansion(onanadjustedbasis) 14.3% 14.8% 2 2014 2017 13.3% OPERATINGMARGIN GAAPOperatingMargin% AdjustedOperationMargin% 2 FY17Adjustedoperatingmarginof14.8%wasadjustedtoexcludethe impactofa$510millionpensionsettlementcharge STRONGEARNINGSGROWTH 6%CAGR(onaGAAPbasis) 9%CAGR(onanadjustedbasis) $4.52 $5.91 3 2014 2017 $5.44 EARNINGSPERSHARE GAAPEPS AdjustedEPS 3 FY17AdjusteddilutedEPSof$5.91wereadjustedtoexcludetheimpact ofapensionsettlementcharge($0.47pershare) SIGNIFICANTCASHRETURNEDTO SHAREHOLDERSSINCEFISCAL2014 9%CAGRDividendspershare $4.4B $7.7B Dividends Repurchases 2017 2016 2016 2015 2015 2017 $12.1BTOTAL CASHRETURNEDTOSHAREHOLDERS TOTALSHAREHOLDERRETURN 4 200 150 100 50 Dollars 2014 2015 2016 2017 Accenture S&P500 S&P500 InformationTechnologySector Index 4 TheperformancegraphaboveshowsthecumulativetotalshareholderreturnonourClassAsharesfortheperiodstartingonAugust31,2014,andending onAugust31,2017,whichwastheendoffiscal2017.ThisiscomparedwiththecumulativetotalreturnsoverthesameperiodoftheS&P500StockIndex andtheS&P500InformationTechnologySectorIndex.Thegraphassumesthat,onAugust31,2014,$100wasinvestedinourClassAsharesand$100 wasinvestedineachoftheothertwoindices,withdividendsreinvestedontheex-dividenddatewithoutpaymentofanycommissions. See“ReconciliationofNon-GAAPMeasurestoGAAPMeasures”onpage87. Total of 06 pages in section ACCENTURE 2017PROXYSTATEMENT ProxyStatementSummary NETREVENUESNEWBOOKINGS$34.9BAnincreaseof6percentinU.S.dollarsand7percentinlocalcurrencyfromfiscal2016.NetrevenueswerewithintheCompany’sinitialbusinessoutlookof5to8percentgrowthinlocalcurrency.$37.4BAnincreaseof6percentinbothU.S.dollarsandlocalcurrencyfromfiscal2016.DILUTEDEARNINGSPERSHAREOPERATINGMARGIN$5.44GAAPAfterexcludinga$0.47pensionsettlementchargeinfiscal2017and$1.11fromgainsonthesaleofbusinessesinfiscal2016,adjustedEPSof$5.91increased11percentfromadjustedEPSof$5.34infiscal2016.AdjustedEPSwaswithintheCompany’sinitialbusinessoutlookof$5.75to$5.98.13.3%GAAPAfterexcludingthe150basispointimpactfromapensionsettlementcharge,adjustedoperatingmarginwas14.8percent,anexpansionof20basispointsfromfiscal2016operatingmarginof14.6percent.AdjustedoperatingmarginwaswithintheCompany’sinitialbusinessoutlookof14.7to14.9percent.FREECASHFLOWCASHRETURNED TOSHAREHOLDERS$4.5BDefinedasoperatingcashflowof$5.0billionnetofpropertyandequipmentadditionsof$516million.FreecashflowexceededtheCompany’sinitialbusinessoutlookof$4.0billionto$4.3billion.$4.2BDefinedascashdividendsof$1.6billionplussharerepurchasesof$2.6billion.CashreturnedtoshareholderswasinlinewiththeCompany’sinitialbusinessoutlookofatleast$4.2billion. CORPORATEGOVERNANCEHIGHLIGHTS Accenture(the“Company”)hasahistoryofstrongcorporategovernance.TheCompanybelievesgoodgovernanceisone criticalelementtoachievinglong-termshareholdervalue.Wearecommittedtogovernancepoliciesandpracticesthat servethelong-terminterestsoftheCompanyanditsshareholders.Thefollowingtablesummarizescertainhighlightsofour corporategovernancepracticesandpolicies: • Annualelectionofdirectors • 100%independentBoardcommittees • Shareholdersholding10%ormoreofour outstandingsharecapitalhavetherighttoconvene aspecialmeeting • 10ofour11directornomineesareindependent • Independentleaddirector,electedbythe independentdirectors • Annualboardandcommitteeevaluationsand self-assessments • Activeshareholderengagement • Regular,executivesessions,whereindependent directorsmeetwithoutmanagementpresent • Robustdirectorselectionprocessresultingina diverseandinternationalBoardintermsof gender,ethnicity,experience,skillsandtenure • Policyonpoliticalcontributionsandlobbying • BoardtakesactiveroleinBoardsuccession planningandiscommittedtoBoardrefreshment • Adoptedaproxyaccessright FINANCIALHIGHLIGHTS Fiscal2017CompanyPerformance Infiscal2017,theCompanydeliveredalltheobjectivesintheinitialbusinessoutlookprovidedinitsSeptember29,2016 earningsannouncement. NETREVENUES NEWBOOKINGS $34.9B An increaseof6percent inU.S.dollarsand7percentinlocal currencyfromfiscal2016.NetrevenueswerewithintheCompany’s initialbusinessoutlookof5to8percentgrowthinlocalcurrency. $37.4B An increaseof6percent inbothU.S.dollarsandlocalcurrency fromfiscal2016. DILUTEDEARNINGSPERSHARE OPERATINGMARGIN $5.44 GAAP Afterexcludinga$0.47pensionsettlementchargeinfiscal2017and $1.11fromgainsonthesaleofbusinessesinfiscal2016, adjusted EPSof$5.91increased11percent fromadjustedEPSof$5.34in fiscal2016.AdjustedEPSwaswithintheCompany’sinitialbusiness outlookof$5.75to$5.98. 13.3% GAAP Afterexcludingthe150basispointimpactfromapension settlementcharge, adjustedoperatingmarginwas14.8percent, anexpansionof20basispoints fromfiscal2016operatingmargin of14.6percent.Adjustedoperatingmarginwaswithinthe Company’sinitialbusinessoutlookof14.7to14.9percent. FREECASHFLOW CASHRETURNEDTOSHAREHOLDERS $4.5B Definedasoperatingcashflowof $5.0billion netofpropertyand equipmentadditionsof $516million .Freecashflowexceededthe Company’sinitialbusinessoutlookof$4.0billionto$4.3billion. $4.2B Definedascashdividendsof $1.6billion plussharerepurchasesof $2.6billion .Cashreturnedtoshareholderswasinlinewiththe Company’sinitialbusinessoutlookofatleast$4.2billion. ACCENTURE 2017PROXYSTATEMENT PROXY STATEMENT SUMMARY ThisProxyStatementSummaryhighlights informationcontainedelsewhereinthisproxy statement,whichisfirstbeingsentormade availabletoshareholdersonorabout December19,2017.Thissummarydoesnot containalloftheinformationyoushould consider,sopleasereadtheentireproxy statementcarefullybeforevoting. Thisproxystatementincorporatesdocumentsby reference.Pleasesee“AdditionalInformation— AboutAccenture”beginningonpage86ofthe accompanyingproxystatementforalistingof documentsincorporatedbyreferenceand instructionsonhowtovieworobtainsuch documents. MATTERSTOBEVOTEDUPON ThefollowingtablesummarizestheproposalstobevoteduponattheAnnualMeetingandtheBo d’svoting recommendationswithrespecttoeachproposal. Proposals Required Approval Board Recommendation Page Reference 1. Re-AppointmentofDirectors MajorityofVotesCast FOReachnominee 13 2. AdvisoryVotetoApproveExecutiveCompensation MajorityofVotesCast FOR 60 3. AmendtheAmendedandRestatedAccentureplc 2010ShareIncentivePlan MajorityofVotesCast FOR 61 4. RatifytheAppointmentandRemuneration ofAuditors MajorityofVotesCast FOR 71 5. GrantBoardAuthoritytoIssueShares MajorityofVotesCast FOR 73 6. GrantBoardAuthoritytoOpt-Outof Pre-emptionRights 75%ofVotesCast FOR 74 7. DeterminePriceRangefortheRe-Allotmentof TreasuryShares 75%ofVotesCast FOR 75 8. ApproveanInternalMergerTransaction MajorityofVotesCast FOR 76 9. AmendtheCompany’sArticlesofAssociationtono LongerRequireShareholderApprovalofCertain InternalTransactions 75%ofVotesCast FOR 81 2.4 Proxy summary These have proliferated since their inception in 2011, largely due to the trend toward ever-expanding (and perhaps less frequently read) proxy statements. For many companies, the proxy summary is an attempt to dissuade shareholders from relying too heavily on third-party proxy advisor reports and vote recommendations. Usually three to five pages in length and some longer, these summaries highlight key voting issues, strategic, corporate governance and compensation developments and any recent corporate changes to these, ideally also indicating where an expanded discussion of each topic can be found within the document. We have identified three primary types of proxy summary: navigational, persuasive and “change” summaries. In practice, many proxy summaries are hybrids of all three types. We are available to have a thoughtful conversation with you regarding whether your proxy would benefit from a proxy summary and what your specific objectives are; this conversation can help determine what information should be included in your proxy summary.