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1. BS BusinessStorm
Strategy Consultants
Accenture in Russia:
A Strategy
Moscow, 2010

2. BS BusinessStorm
Strategy Consultants
Accenture: strategic markets
The PURPOSE: enter Russian consulting market and grow to a $100 million management consulting
business in terms of revenue by 2020 (for Accenture global strategy, see Appendix 1).
Operating groups and Industry groups (Appendix 2)
Communications Health and Public
Financial services Products Resources
and High Tech Service
This market
Public institutions of
contracted by 40-
this segment are
60%, so the banks
Boom on financed by the Slight increase to the
Opportuni and other financial The market of
Russian government not Pre-crisis level.
ties institutions Products dropped.
enough. It still the most
in IT- market desperately need The pre-crisis
Services of private Lucrative market.
Russia advice about how growth rates are
companies will
(Appendix to overcome the impossible to reach.
hardly be paid well.
3) crisis.
Accenture has
a strong
information
According to the Public and This segment
technology and Resourses Market is
global strategy of Health service is the provided Accenture
systems focus. one of the strategic
Accenture it can least profitable group with the higher
A good directions of
help reinvent the in Accenture’s revenue than the
What opportunity to Accenture.
industry activity. other groups.
Accenture enter the Russian
can offer under-penetrated
IT Market
It is better for Accenture to concentrate in development in the groups of Communications and High
Tech, Financial Services and Resources.

3. BS BusinessStorm
Strategy Consultants
Segmentation of the Russian consulting world
(for features of the matrix, see Appendix 4)
Specialized «West» Specialized «West» BIG FOUR:
consulting firms, delivering consulting firms, •PricewaterhouseCoopers
services to international delivering services to •Deloitte&Touche
Price of the order, thousands dollars
clients, performing on Russian clients : •Ernst&Young
More than 50
Russian market: •McKinsey&CoWard •KPMG
A.T. Kearney, The Boston •Howell International
Period of time, years
Consulting Group, Carana
Corporation, Arthur D. Little,
Roland Berger, Bain
60
Russian Boutique firms Specialized Russian Diversified Russian
From 10 to 20
• PRO-INVEST CONSULTING organizations: organizations:
• Consulting department of • Rus-audit • BDO
Nicoil Bank •IBS •Business Systems Development
• National agency of assessment • NP Consult •Top-audit
and consulting • Group INEC • Finexpertiza
15
Less than 10
Small regional Russian Small Specialized Small Diversified
consulting Russian consulting Russian organizations
organizations organizations
0
20 100 150 1200
Number of staff

4. BS BusinessStorm
Strategy Consultants
Russian market entry strategy
 Russian consulting market has contracted because of the In near future -
crisis by 17% (Appendix 5) no space for one
 The market is inflexibly segmented more consulting
company
 In Russia in 50% of cases personal contacts help to be It's better to break
hired as a consulting company (tender is used only in the into the Russian
rest 50% of cases) market not by
 Successful Russian companies work in the market for more themselves, but
than 10 years, so they have valuable client databases. It through a successful
will be hard for a "newcomer" to entice away the consulting company,
prospective clients
who has already
 The peculiarities of Russian way of doing business are gained its market
known only to the companies who have enough experience
share, client
in this field, and are not obvious for a "newcomer"
database and
expertise
Alliance, merger or acquisition?
Acquisition, because Accenture's purpose is to work on the Russian market under
their brand name

5. BS BusinessStorm
Strategy Consultants
Choosing a potential target company
 As a target company we should consider the companies, which are in the second line in the matrix of
market.
 The companies that are leading players could be viewed as complex systems, they will be reluctant to
reduce their market share.
 The rest of the companies are quite small in their size, thus they will never help Accenture to enter the
Russian market.

For entry criteria BDO-Russia Business Systems Top-audit Finexpertiza
see Appendix 6 Development
Major clients LUKOIL, MTS, RF Ministry of Mosenergo, Transneft, Mechel, Rosneft, RF
Sberbank Finance, Russian Russian Post Ministry of Defence
Railways, ТNК-BP
Major industries Energy, Public Energy, resources, Metallurgy,
communications administration, communications resources, public
and high-tech, transport, administration
financial sector resources
Revenue from 2 563 160 1759522 1 523 605 1452668
consulting, 2009
(thousands of roubles)
Estimated revenue from 3 308 882 2 580 790 2 085 416 2 049 850
consulting per year by Only BDO will pass
2020 (thousands of the $100M mark
roubles) (Appendix 7) ( 3 bln.rub.)

6. BS BusinessStorm
Strategy Consultants
Acquisition of BDO-Russia (the consulting department)
Why BDO? See Appendix 8
Step 1: Business valuation
B2b service companies are usually valuated as 5-7 EBITDA, but as we are short of
information we will assess BDO’s consulting business as it often done for consulting
companies – value ~ annual turnover.
I.e. BDO’s consulting department value ~ RUR2309,08M (~$74,486M) as the average
revenues for the past 3 years and the prognosed revenue for 2010. As the average
profitability for the consulting companies in Russia is 20-23%, the payback period will be
about only 5 years (Appendix 9).
Step 2: Financing
Acquisitions are usually financed by business loans. Accenture can apply for loan in its
servicing bank or for a specific acquisition loan, e.g. from the Kennedy Funding, Inc.
(Appendix 10) that offers a loan for 12-21% per annum up to 10 years.
Step 3: Post-acquisition strategy
To expand the activities in 3 strategic sectors: Communications and High Tech, Financial
Services and Resources.
To combine and improve the services and corporate ethics of the Accenture and the former
BDO consulting department.
To preserve the links with all BDO clients and attract new.

7. BS BusinessStorm
Strategy Consultants
Appendixes

8. BS BusinessStorm
Strategy Consultants
Appendix 1. Accenture Global Strategy
• Growth in the core business - significant opportunities and
headroom for growth in core management consulting business
across all service lines:
 Customer Relationship Management
 Finance & Performance Management
 Process & Innovation Performance
 Risk Management
 Increasing shareholder value
 Supply Chain Management
 Talent & Organization Performance
• Growth through new initiatives and businesses
• Growth through geographic expansion in strategic growth markets
of Brazil, India, China, Russia, Mexico and South Korea.
Back to presentation

9. BS BusinessStorm
Strategy Consultants
Appendix 2. Accenture Operating Groups, 2010
Please see next slide

10. BS BusinessStorm
Strategy Consultants
All the operating groups perform successfully 
Accenture strategic areas will depend only on its
opportunities in Russia
The structure of sources of net revenues of
Accenture in 2010
Communications & High
18% 21% Tech
Financial Services
Health & Public Services
23% Products
21%
Resources
17%
Back to presentation

11. BS BusinessStorm
Strategy Consultants
Appendix 3. Top-400 clients of consulting in
Russia – potential Accenture clients?
Top-10 clients:
% of sales Gazprom
4% Communications & High
LUKOIL
11% Tech Rosneft
1%
Financial Services Russian Raliways
46%
Health & Public Services
TNK-BP
Transneft
Products Surgutneftegas
38%
Resources
Norilsk Nickel
The biggest share of sales is in Vimpelcom
Financial Services
Rosenergoatom concern
% of quantity
5% Communications & High
17% 10%
7 of 10 – Resources & Energy 2%
Tech
Financial Services
2 of 10 – Products Health & Public Services
(transportation services) Products
1 of 10 – Communications & Resources
66%
High-Tech
Source: case materials Back to presentation

12. BS BusinessStorm
Strategy Consultants
Appendix 4. Features of the matrix
1. In the matrix companies compete with each
other only across the line.
2. The higher the company on vertical position,
the older the company is. However, the
opposite approval is wrong.
3. The higher the company on vertical position,
the more its services cost.
Back to presentation

13. BS BusinessStorm
Strategy Consultants
Appendix 5.
Russian consulting market trends
Russian consulting market in Russian consulting market has huge
terms of revenue growth potential
The main reasons of growth of Russian
70
62,69 consulting market during «financial crisis»:
60 54,23
49,4
52,21 • Investors, bankers, lawyers require
50 thorough analysis
bln. rub.
40 35,3
• The scale of governmental economic
30 24 support through the state banks
20
10 • Investors desire to minimize the
costs
0
2004 2005 2006 2007 2008 2009
Please see next slide For Accenture entering Russian market is
really prospective

14. BS BusinessStorm
Strategy Consultants
The Survey of the Russian market of consulting in
terms of its branches in 2009-2010
Strategic management:
demand increased Operations management:
significantly up to 94,4% demand grew rapidly
Management
consulting is the
most prospective Human resources
sphere in the IT:
management:
Russian consulting demand decreased sharply
demand dropped
market to 11,7 %
dramatically to 46%
Accenture should lay special
stress on developing Marketing:
management consulting in demand declined
Russia dramatically to 51 %
Back to presentation
Source: RA Expert

15. BS BusinessStorm
Strategy Consultants
Appendix 6. Choosing a potential
target company
Criterias:
 From Top-30 Russian consulting companies (other companies
have too little market share, do not generate enough revenue
and/or do not have enough expertise )
 Only management consulting (don't consider IT-consulting, tax
consulting etc.)
 Persistent growth of revenue in 2003-2009
Sources of information:
 Top-100 consulting companies (ratings by
Kommersant.Money and Expert, published in 2004-2010)
 Official websites of the "potential targets"
Please see next slide

16. BS BusinessStorm
Strategy Consultants
The largest consulting groups in Russia in 2009*
Sales from
Audit and consulting consulting, 2009 Annual increase
2009 2008 Headquarters
groups (thousands of in sales (%)
roubles)
PricewaterhouseCoop
5 3 Moscow 3 209 548 −8,1
ers
Moscow
6 − KPMG 2 762 538 2,7
Moscow
8 7 BDO-Russia 2 563 60 6,7
Energy Consulting
10 11 Moscow 2 168 910 30,5
Group
Business Systems
13 9 Moscow 1 759 522 −3,2
Development
14 12 Intercom-Audit Moscow 1 630 633 5
15 18 RSM Top-Audit Moscow 1 523 605 12,2
16 13 Finexpertiza Moscow 1 452 668 7
21 − RUFAUDIT Moscow 926 753 −
22 23 Rosexpertiza Moscow 901 806 16
Back to presentation
* Source: RA Expert

17. BS BusinessStorm
Strategy Consultants
Appendix 7. Estimation of the revenue in 2020
Step 1. Historical analysis 3 000 000
Revenue (thousands of roubles)
Revenue in 2003-2009 2 500 000
2 000 000
BDO-Russia
1 500 000 Business Systems
Development
Finexpertiza
1 000 000
Top-audit
500 000
0
2003 2004 2005 2006 2007 2008 2009
Step 2. Prognostication 3500000
3 308 882
Revenue (thousands of roubles )
For approximation logarithmic 3000000
$100M
2 580 790 BDO-Russia
trend is optimal: 2500000
2 085 416 Business Systems
2000000
 reliability of approximation 2 049 850
Development
coefficient R2 is 0,83 – 0,89 for all 4 1500000 Finexpertiza
companies 1000000
Top-audit
 it provides conservative estimation 500000
0
of future revenue based on a life-cycle 2004 2006 2008 2010 2012 2014 2016 2018 2020
of a company concept
Back to presentation

18. BS BusinessStorm
Strategy Consultants
Appendix 8. The advantages of the
BDO-Russia’s acqusition
 For the clients, the BDO brand means a unified approach and consistent quality in any
country in which BDO Network has a presence.
 BDO is a network of independent companies, and not an integrated structure like
McKinsey or BCG. Consequently, Accenture can acquire BDO-Russia nearly whithout
affecting the interests of BDO in other countries
 The company has been known on the Russian market since 1989 under the Unicon brand.
 A huge database of loyal and sound clients - more than 50% of the clients are on the Top-
100 list of the Russian business.
 First Russian company whose audit opinions are accepted by regulators at three stock
exchanges — New York, London and Frankfurt
 Unique 20 year experience in serving fast-growing Russian companies, including those
using international reporting standards, companies of strategic importance, major banks,
the state authorities and government corporations
 Industry specific service offerings and tailored solutions
 Experience in all prospective sectors: resources & energy (ROSATOM, MOSENERGO,
Gazprom, LUKOIL, etc.), communications and high-tech (MTS, Central telegraph, CTC
Media, Sony Ericsson, Gazprom-Media Holding), financial sector (Alfa-bank, VTB Bank,
Sberbank and others).
 BDO-Russia has huge growth potential
 By acquiring BDO-Russia Accenture will achieve its purpose - $100M by 2020
Back to presentation

19. BS BusinessStorm
Strategy Consultants
Appendix 9. Assessment of BDO’s value
and payback period
According to the data* the revenues of BDO-Russia's consulting department were as
follows:
 2007 – RUR1902,863M
 2008 – RUR2393,979M
 2009 – RUR2563,160M
 Prognosis for 2010 – RUR2376,311M
The average revenue ~ RUR2309,08M
The net profit doesn’t differ significantly from the net cash flow (due to the low
amount of fixed assets and expenses on depreciation/amortisation), so we can
assume that NCF ~ Net profit.
As the initial expenses of Accenture to acquire BDO ~ annual revenues and in
consulting the average return on sales (that equals net profit divided by revenues)
is 20-23% the payback period is the inverse function of company’s return on sales.
PBP ~ 1/(20-23%) ~ 4,3-5 years
Back to presentation
* Source: RA Expert

20. BS BusinessStorm
Strategy Consultants
Appendix 10. Kennedy Funding, Inc
Today, Kennedy Funding is actively seeking new funding opportunities throughout the world. With free
enterprise on the rise everywhere, they hope to fill an important role in helping companies of all sizes
to achieve their goals.
The program has been providing lightning-fast service and creative funding solutions throughout North
America since 1987, and internationally since 1996.
Term - Flexible loan term from 1 to 10 years.
Prepayment - No prepayment penalties.
Use of Proceeds - Loans are made for business
purposes only.
Loan to Value - Loan amounts can be up to 50-
85% of the disposition value of the collateral,
based on the estimated cash sale price given a 180
day marketing time.
Rates - Rates vary from 12-21% per annum,
interest only, depending upon collateral and loan
structure.
Size of Loan - From $1 Million to $100+ Million
nationally. Must be at least $5 Million
for international loans.
Collateral - Real estate and other fixed or liquid Back to presentation
assets.

21. BS BusinessStorm
Strategy Consultants
Thank You!
Our team:
Ann Nazarova,
Natalia Ulyanova,
Ayuna Danzanova,
Olga Pivovarova
Finance University under
the Government of the
Russian Federation