Endless Possibilities
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2009 Annual Report Endless Possibilities 01 Introduction 02 President/Chief Executive Officer and Chairman’s Statement 06 Financial Highlights 08 Chief Financial Officer’s Statement 10 Our Expertise 12 Our Ingenuity 14 Our Drive 16 Our Vision 18 Our Partnership Capabilities 20 Architecture 22 Building Engineering 24 Design + Planning 26 Economics 28 Energy 30 Environment 32 Government 34 Program Management 36 Transportation 38 Water 40 Management Financial Information 42 Introduction 44 Selected Financial Data 46 Condensed Consolidated Balance Sheets 48 Condensed Consolidated Statements of Income 50 Shareholder Information/Forward-Looking Statements 51 Report of Independent Registered Public Accounting Firm Page 01 Introduction On seven continents and in more than 100 countries, AECOM is dedicated to improving the quality of life for people everywhere. Relying on a deep reservoir of talent, knowledge and creativity, we achieve this goal through our design, technology and program and construction management expertise. We produce innovative solutions that incorporate social, environ mental, economic and ethical issues. Our expertise lies in planning, designing, managing and implementing projects in the facilities, transpor tation, environmental, energy, mining and government agency markets. We are focused on increasing share holder value and providing employees with professional development opportunities and are focused on client satisfaction. At AECOM, we welcome the opportunities to make the world a better place that our clients present through their projects. We look forward to meeting their needs as a way to expand our expertise. And we embrace our responsibility to enhance and sustain the world’s built, natural and social environments in the work we do around the globe. As a corporate citizen, we believe it is our responsi bility to conduct business in a way that benefits the environ ment, reduces waste and protects the health and safety of our employees, clients and the citizens of the communities in which we live and work. Page 02 President/Chief Executive Officer and Chairman’s Statement Fiscal year 2009 was an exciting time for AECOM, as we continued to deliver excellent business results despite the prevailing global economic downturn, and we further unified our operations and brand to one AECOM. Our strong performance reflects AECOM’s proven diversified business model and the ability of our staff to effectively collaborate across global business lines and geographies. During fiscal year 2009, we continued period last year. Earnings per share to have AECOM evolve into a company were US$1.73, a 23percent increase. that continues to function in a seamless At the close of the year, we had cash, manner on a global basis across all cash equivalents and marketable of our operations to meet the needs securities of US$291 million. of our clients and the challenges that AECOM was awarded some of the the world has to offer. AECOM offers world’s most important projects as its clients an integrated workforce we continue to advance our reputation with strong momentum — ready to as a global leader in professional meet new challenges and achieve technical and management support continued success. services. Our yearend, record backlog AECOM has the talent and capabilities of US$9.5 billion reflects a 10percent to design and manage the world’s increase from fiscal year 2008. John M. Dionisio most complex assignments. On every President and Chief Executive Officer Pursuing growth continent, we are committed to Looking ahead, our goal is to continue Richard G. Newman improving quality of life. But nothing Chairman to capture market share by serving our better illustrates the qualities that existing clients well in each of our end define us than the projects that we markets, and by attracting new M&A deliver. Today, we are working on eight partners to AECOM. of the 18 largest civil infrastructure programs in the world. Combined with What is especially gratifying to all outstanding technical capabilities of us at AECOM is that throughout across a broad range of sectors, we these turbulent economic times, our have the ability to work on any project, people have continued to focus on anywhere in the world. our clients, which has caused us to grow our market share; we have won AECOM has approximately 45,000 significant mega projects; and, we have employees located in more than 100 expanded our business in existing and countries. It is these talented people emerging markets. and their commitment to be the best that set us apart. And our reputation During 2009, our organic growth was for quality results reaches far beyond fueled by large, wellfunded projects. our traditional client base. AECOM With a strong balance sheet, we are currently is listed on the Fortune 500 well positioned to emerge from this and is rated number 14 in shareholder economic downturn even stronger return. In addition, Newsweek ranked than we were before. us as one of America’s greenest Diversification companies. And in 2009 we were Our technical excellence comes from named a Best Workplace by Financial the rich history of some of the world’s Times as well as awarded Best Diversity finest engineering, environmental, Company by Diversity/Careers magazine. planning and design companies that Financial performance have become part of AECOM. Our largest During fiscal year 2009, which ended end market practices are transportation, September 30, 2009, our revenue grew environment and facilities, which by 18 percent to a record US$6.1 billion. comprise 28, 25 and 24 percent of our Operating income rose by 20.3 percent business, respectively. The remaining to US$286.9 million. Net income from 23 percent comprises government continuing operations was US$187 services and energy and power. Our million, up 27 percent for the same funding sources are also well diversified Page 04 President/Chief Executive Officer and Chairman’s Statement across state, local, federal, nonU.S. Abu Dhabi, program management of We are proud to have been again government and private sources. Public the Saadiyat Island Cultural District in recognized in Engineering News-Record’s funding made up 71 percent of our Abu Dhabi, Saudi Arabia’s Al Khobar (ENR) 2009 Top 500 Design Firms global revenue. Gate Tower and Knowledge Economic rankings, where AECOM is ranked City, and Qatar’s Doha port project, number 2 overall. In addition, we lead This broad reach and diversification among many others. in several key market sectors, ranking of end markets, services, geographies number 1 in Pure Design, Transportation, and funding sources give AECOM a In Europe, during 2009, the United General Building and Hazardous Waste. solid foundation and enable us to take Kingdom was affected by the advantage of opportunities in the global challenging economic environment, Mergers & Acquisitions market during strong as well as soft especially in its private facilities We continue to pursue M&A opportuni economic times. Clearly this business markets; however, we continue to ties that expand our geographic strategy served us well during the global advance our work on the London footprint and provide access to new recession of 2009. Crossrail, the largest civil infrastructure markets and services. During fiscal year in Europe. Despite the challenging 2009 and the first two months of fiscal Global markets conditions in many parts of the year 2010, we completed four strategic Our collaborative approach of working continent, we continue to work on acquisitions. Savant, a project and globally and delivering locally is the important projects such as the Legacy constructionmanagement firm expands main driver of our ability to provide our Masterplan Framework for the Olympic AECOM’s global presence, particularly clients effective services. With projects Park and The Crescent in Baku, the in Russia, Eastern Europe and the around the world, 52 percent of our work capital of Azerbaijan. Commonwealth of Independent States is located outside of the United States. (CIS). Our acquisition of LAN Engineering During 2009, we continued to expand Our markets in Australia are performing bolsters our transportation presence in geographically in regions such as Russia, well, particularly in water, mining and California, and Ellerbe Becket expands Eastern Europe and the Commonwealth transportation. The country’s Build our capabilities in health care, sports of Independent States. Australia Fund continues to invest in and education. We also added SSI capital projects in the transportation, AECOM continues to have strong Services, which has an established environmental and facilities markets, growth in Asia, especially Hong Kong, reputation in supporting operations which play to our “sweet spot.” Australia, the Middle East, and Canada, for the U.S. intelligence community. as well as the transportation and In Asia, we continued our strong Additionally, during December 2009, we government business sectors in the performance during 2009. Some of our added the expertise of approximately United States and the global hydropower key wins in Hong Kong included the 90 professionals from Glatting Jackson market. Recently, we have seen signs design of the city’s highspeed rail Kercher Anglin to bolster several of our of an economic recovery with a distinct terminus, infrastructure design and service offerings in the southeastern rebound in project activity as the global constructionsupervision consulting United States. stimulus packages continue to roll out. for the landmark Kai Tak redevelopment Our people project, as well as design and Eight months after the start of the Our talented employees are the engine constructionmanagement services U.S. stimulus package, AECOM has won of our success. Our staff has made for the city’s CentralWan Chai Bypass more than US$530 million worth of AECOM one of the largest and most and Island Eastern Corridor Link plan. incountry, stimulusfunded projects in respected providers of professional Elsewhere in Asia, we won the design the transportation, facilities and technical and management support of the Padma Bridge, the longest in environmental markets.