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A Bold Ambition Meeting the Complex Challenges Our Clients Face Contents Annual Report 2015 A bold ambition Meeting the complex challenges our clients face Contents Performance Designing a world that’s more 02 summary resilient, more efficient and more enjoyable to live in, we combine 04 A unique exceptional expertise with new philosophy 12 Designing thinking to meet the complex work of quality 06 Chairman’s statement Creating challenges our clients face. At Arup inspiring spaces we call this ‘shaping a better worldʼ. Developing Sustaining essential resources 10 our people It’s a bold ambition we’ve realised Connecting people across nearly 14,000 projects this and places year. This report details that journey, Finding a better way and shows how and where we’ve 22 Making a positive made real progress. difference Putting sustainability at the core Walking the talk Helping people improve their lives Cover: Ngoolark Building, Edith Cowan University Perth, Australia Financial The striking Ngoolark (Building 34) 30 is a AU$72m development on summary Edith Cowan University’s Joondalup Campus. It is wrapped in an audacious golden exterior and is designed to draw in natural Structure and light, connect with outdoor areas 32 and engage with the existing leadership campus buildings. 1 Performance People and Regions The highest ranked engineering Best Engineering Firm at the summary Success at Arup is measured With a focus on quality as a consistent consultancy firm inThe Times Top 2015 Financial Review Client principle, attracting and developing 50 UK Employers for Women 2014 Choice Awards, Australia in a number of ways, with the brightest and best is a key priority the impact we make for our across all Regions. #1 #1 Average number of Arup staff Growth in staff numbers clients and the communities members this year where we work always the 12,143 6.9% most significant. Countries where we have Number of global offices delivered projects in 2014/15 11 9 + 92 Client highlights The number of clients served around The number of fee earning projects This year saw us refreshing our strategy the world has increased to has also grown to to ensure that it is better aligned to our clients’ needs. The positive results from + + our 2015 Client Survey give a clear 8,000 13,700 indication of the progress we’ve made. In a 2015 survey of our clients, 98% see Total percentage income by Region Number of permanent active staff in each Region Arup as being ‘distinct from other firms’ UKMEA 41.5% UKMEA 4,631 East Asia 20.1% East Asia 3,494 Americas 14.6% Europe 1,531 Australasia 12.3% Australasia 1,323 % Europe 11.5% Americas 1,164 98 Income People Income and profit Income Income growth Profit shared with all Our income in 2014/15 grew to £1.13bn, staff members a positive performance that reflects continuing demand for our services % % across a broad range of industries. £1.13bn 7.4 66 2 3 Arup is a firm driven by fresh A unique Quality philosophy Our founder, Sir Ove Arup, once said: “Only a job done well, as well challenges and new ideas but as we can do it – and as well as it can be done – is rewarding”. For Approach some things stay the same. us, that means aligning imagination We bring a fresh perspective and practical intelligence with a to every project we undertake, firm-wide focus on client priorities. no matter what the challenge. We’re united in our desire This consistent approach ensures This means thinking laterally, excellence at every stage of the going beyond the obvious and to make a real difference and project process. proactively sharing ideas – across disciplines as well as geographies. Independence 2014/15 saw us winning more than It’s a distinctive approach that clear about the things that 150 industry awards for the quality sees us delivering innovative and As a trust operating on behalf of our work around the world. sustainable designs that reinvent of our members of staff, our today’s built environment. make us different. ownership structure delivers two key benefits. It ensures that + Over 500 of our best minds we can offer our clients the best 150 worked abroad this year as part professional advice free from of our international mobility shareholder pressures. It also programme. allows us to invest substantially in research and innovation, fuelling our ability to ‘find a better way’. 500+ We invested £19m on Research and Development this year. Ethos £19m Ambition We are a firm built on clear, Harnessing our combined shared values. Derived from the strengths, we’re eager to take beliefs of our founder Sir Ove on the complex challenges that Arup, they shape our goals and our clients and society face. our behaviour, wherever we Beyond the strategic, technical are working. Quality, integrity, or aesthetic, we measure our humanity and usefulness are the success by the difference we underpinning principles – driving make – for our clients and the forward a firm that constantly communities in which we work. strives to make a difference. People In our 2015 Client Survey, 98% The date of Sir Ove Arup’s of our clients see our contribution visionary Key Speech in which Solving the biggest challenges as ‘distinct from other firms’. he stated the aims of the firm and means attracting and developing his distinctive analysis of the exceptional people who share our principles through which they ambitions and our values. This % may be achieved. doesn’t happen by accident. From 98 outstanding graduate programmes to best-in-class learning for every member of staff, we aim to develop 1970 people who can question and enhance a project vision as well as they deliver it. We provided professional development to over 7,000 of our people in the last year. 7,000+ 4 Sir Ove Arup, circa 1975 5 Chairman’s Expanding our global impact I am pleased to report A key part of our strategy is to strengthen our position statement as a global firm to better service clients around the world. To meet this aim we recognised the need to build on our another strong year for reputation and influence in three important geographies. We are already well established in China. There was a our firm. We made good slowdown in growth rate this year, but this huge country still represents around 10% of global trade. We believe its progress implementing our status as an economic powerhouse will continue to provide us with outstanding opportunities for the foreseeable future. The development of a new ‘mini-city’ around strategy across all Regions, the Xinzhuang Metro Station in Shanghai is a prime example. Fully exploiting our multidisciplinary skills in strengthened relationships building and rail engineering, it will see a busy ‘in-use’ station expand into a vibrant mixed-use development. with our clients and continued North America remains the biggest combined economy in the world. Again, we have an established presence with strong client relationships, and there is plenty of headroom to deliver the diverse skills for us to continue our development. Detailed design on the US$1.3bn development of the Los Angeles Metro and the that differentiate Arup across exciting expansion of the San Francisco Museum of Modern Art are good examples of our progress on this front. our markets. The third country is India, whose requirements for developing cities, infrastructure, water and energy offer huge potential for our firm. As investor confidence grows, we are determined to be in a good position to help India as it gets to grips with the massive task of modernisation. Our work turning Mumbai’s A key aspect of our progress was a It also ensures that we are able Providing better client focus Gregory Hodkinson Chhatrapati Shivaji International Airport from a construction refreshed strategy that better aligned to invest substantially in the kinds Our clients are our primary focus. site to a fully operational facility is just one example of the We aim to provide them with our services with our clients’ needs. of research and innovation that capabilities we can bring to bear. the best holistic solutions, using This approach has provided greater transform projects and their multidisciplinary approaches clarity and focus. Significant new long-term performance. appropriate to their requirements. assignments earned during the year Our ability to produce outstanding Our business is focussed on five major included new airports in both Mexico work for clients is further predicated geographic Regions where we can City and Istanbul; planning for the operate successfully in accordance with on our ability to recruit and retain 2020 Olympic and Paralympic our values; and in four markets where exceptional people. Each year we Games in Tokyo; the Kuala Lumpur- our unique blend of skills can make a attract a large number of graduates Singapore High Speed Rail project; real difference. from premier universities around and design for major enhancements the world. This year, for example, Our Regions to the CERN Large Hadron Collider. we had more than 25,000 graduate – Americas A strategy with strong – Australasia The benefits of independence applications for the 630 positions foundations – East Asia Our mission is to ‘shape a better available. Our strategy is to pursue the main aims – Europe world’. For us that means helping our Our ownership structure also allows of the firm set out by Sir Ove Arup in – UKMEA clients meet their greatest challenges, his Key Speech in 1970. These six aims us to provide an environment where utilising a powerful mix of technical are as relevant today as they were then: talent, drive and innovation are given Our markets expertise, ingenuity and a shared the platform to grow and thrive.
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