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Annual Report 2019 Annual Report 2019 Projects Finding new ways to make even more of a difference People Solving challenges with energy and ingenuity Excellence 2019 Annual Report Imagination Purpose Projects Finding new ways to make even more of a difference Read now People Solving challenges with energy and ingenuity Read now Highlights Chairman’s statement Governance Awards An ethos we’ve built on 36 04 Excellence through 48 innovation Supporting & inspiring 0 1 4 3 30 2 our0 people 8 2 1 Sustainable to1 the core 2 4 Making ourselves useful Financial summary 1 This year’s Annual Report is told through stories 1 APRIL 2018 — 31 MARCH 2019 about our people and our projects – connected by the themes of excellence, imagination and purpose. Half a century on from the direction Sir Ove Arup gave us, the stories about our people demonstrate what his forward-thinking ideas mean for us IN BRIEF today. They show how constant innovation fuels imagination and underpins excellence, and the 6,931 17,13 8 Clients served Fee earning projects steps we are taking to support and inspire everyone who works with us. They also reflect the central role sustainable development plays in our firm and the focus we place on working with local communities 15,870 14 3 Members Countries where facing difficult challenges. we have worked The project stories show the huge breadth of work we have undertaken for our clients this year – from major cities to rural communities, complex networks to single inspiring experiences. All this work shares FORWARD ORDER BOOK (£BN) a common purpose – the desire to create something 2017 1.05 of clear value, where our skills help to improve 2018 1.31 people’s daily lives, and support sustainable 2019 1.36 growth and prosperity. REVENUE (£BN) 2017 1.51 2018 1.56 2019 1.71 Highlights 2 ANNUAL REPORT 2019 3 Arup has continued to create work of real quality and make a positive contribution to communities in every corner of the world, despite these uncertain and turbulent times. Our financial position remains robust. However, our real strength lies with our members who continue to demonstrate both ingenuity and determination, however big the challenge. As I begin my time as Chairman, I’m conscious These issues are all related. That’s why we took that I am very much a steward. My goal is clear – the decision in 2017 to build our response around to ensure that our firm continues to do great work the United Nations Sustainable Development for the benefit of our clients and communities, Goals (SDGs). The comprehensive, action-based through a team of talented people who are happy nature of these goals aligns with our own values. and fulfilled. As advisors, designers and engineers, we see these issues up close, every day. The SDGs offer In my first days, a summary of recent projects us a platform to do something substantive across lay on my desk. One page particularly struck every facet of our operations (page 36), and me. It showed the awe-inspiring Queensferry they’re providing additional impetus to many of Crossing in Scotland alongside the seemingly the good things our firm has already been doing humble drawings of new hand-washing stations for some time. that we designed to improve hygiene in refugee camps around the world. In one respect they One example is the growth of our water and couldn’t be more different. Viewed another energy work. This is aligned with the SDGs, way they are exactly the same – clever solutions whether it has seen us strengthening water to complex problems that are making a real resilience in India (page 122), pioneering the difference to people’s daily lives. This is what use of hydrogen energy in New Zealand (page ‘shaping a better world’ really means. 106) or helping refugee communities in Ethiopia access affordable sustainable energy (page 45). SUSTAINABLE DEVELOPMENT We are eager to expand our work in these There is no escaping the fact that the global areas in the years ahead. The world needs geopolitical situation is volatile and it’s getting new, more sustainable solutions, and the harder for any business to plan with certainty. innovative, research-based work we are doing Equally, other factors like rapid urbanisation, on programmes like City Water Resilience social inequality, climate change and the (page 110) gives us the strength and insights we constantly expanding impact of new technology need to help our clients achieve real change. are all having a major effect on the clients we work for. Alan Belfield Chairman 4 ANNUAL REPORT 2019 5 EXPANDING IMPACT DIGITAL LEADERSHIP For much of our history, design, architecture, Digital technology, in all its different forms, is planning and engineering has been Arup’s main another area of significant development. We’re focus. Over the past decade our advisory services making huge strides forward in the way we have grown in importance. collect, manage and use data to inform everything we do. We’re also rapidly expanding our use These advisory services, anchored in our technical of automation, machine learning and artificial expertise, are now making a real difference to intelligence to solve new and greater problems. our clients’ businesses. Technical experts are working hand in hand with colleagues skilled With our clients, advanced technology is in strategy, economics, finance, sustainability, expanding our ambitions and capabilities. operations and change management. Together, Enhanced modelling techniques are making our work allows clients to, for example, designs for groundbreaking structures like the understand the viability and potential benefits Forest Tower in Denmark possible (page 86). of proposed schemes, enabling them to invest Machine learning is helping us implement with greater confidence. It also allows them to more effective flood management strategies, improve the development and performance of with benefits for vulnerable communities assets ranging from industrial plants to airports. around the world (page 26). Meanwhile, our Our work advising the hugely complex £1bn use of blockchain technology is allowing young London Power Tunnels project (page 104) clearly homeless people in Berlin to access critical illustrates the benefits we can bring. services without the need for bank accounts or credit cards (page 124). Getting the most out of digital advances is as much about people as processing power, and our firm-wide digital transformation programme is MACTAN-CEBU INTERNATIONAL AIRPORT Lapu-Lapu City, Philippines beginning to pay dividends. The tools our people develop and the data they depend on are being shared in new ways, enabling a greater level of collaboration than ever before. GEOGRAPHIC STRENGTH Personally, I was delighted to be present at Against a turbulent global picture, we have again the opening of the hugely impressive Champlain LONDON POWER TUNNELS performed well across all our regions and all our Bridge in Montréal. The bridge will be the busiest London, UK markets this year. Revenue has grown by 9.9% in Canada with 50 million crossings a year. to £1.71bn, with an operating profit (before staff Canada’s Infrastructure Minister, Francois-Philippe profit-sharing) of £135.4m. Champagne, provided a sense of its stature for We have helped shape a better world in 143 the whole region: “We talk about the Golden Gate countries this year. And in each of our five Bridge and the Brooklyn Bridge, and I think this regions, we want to be where the challenges will be a historic landmark for Montréal.” are and where there is an opportunity for us Another area of rapid expansion is South East to make a difference. Asia. We have strengthened and grown our In North America we continue to see an operations in Malaysia and Vietnam this year increasing demand for our services in both and expect to continue increasing our presence the USA and Canada. Our work here has been in Singapore, Thailand, Indonesia and the hugely varied, from iconic projects like the Philippines. The bold, locally appropriate design redevelopment of Seattle’s Space Needle (page of Mactan-Cebu International Airport (page 80), 100), to our specialist acoustic collaboration is a good example of the impact we are making. with the musician Björk (page 98). 6 ANNUAL REPORT 2019 7 MEMBERSHIP MINDSET Professional development is another important Our founder, Sir Ove Arup, often spoke focus. The skills our clients require are changing. about the importance of people. How people We’ve got to provide all our people, at every are ‘members’ of organisations they want to level of the firm, with the training and education be part of. Their participation is voluntary, and they need to stay relevant in today’s rapidly a reflection of what Sir Ove called ‘unity and evolving working environment. Arup University’s enthusiasm’. Everyone at Arup is always eager Masters Modules are just one example of the to nurture this mindset, ensuring a thriving and approach we are taking – equipping future collaborative culture for all our members. leaders with knowledge of emerging fields like As I outlined earlier, we are increasingly machine learning and artificial intelligence, welcoming people with a wider range of skills and or urban resilience. backgrounds. It also sees us actively celebrating diversity and inclusion. In a traditionally male- dominated profession, we can’t create perfect gender balance overnight. What we can do is make it a constant focus and measure our progress year by year. An improvement of almost 2% towards a better, gender-balanced membership is a step in the right direction this year (page 31). SPACE NEEDLE RENOVATION FOREST TOWER, CAMP ADVENTURE Seattle, USA Rønnede, Denmark TELLING ADVICE As I look ahead to all the challenges and In September 2018 we held our Group Annual opportunities we face as a firm, a telling Meeting in London.
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