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 , 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 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 ; 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 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. I was Quality of work –– Cities desire to make a positive difference –– Transport delighted to see more than 7,000 staff in the world. Every year brings new Total architecture –– Energy undertake professional development projects and new problems to solve –– Water this year, many accredited through Humane organisation but our approach remains consistent – Arup University – an achievement that Straight and honourable dealings ingrained in the values that make will further enhance the quality of the us distinctive. Social usefulness work we deliver. Integral to this is our structure as an Reasonable prosperity of members Our international mobility programme independent professional firm, owned saw almost 5% of our people working in trust for the benefit of our members away from their home country this of staff. This ownership model allows year. This focus on offering ‘the right us to consistently offer our clients expertise in the right place at the right best advice – free from the constraints time’ makes working with a globally imposed by external shareholders. integrated business a tangible benefit for our clients, wherever and whenever they need us.

6 7 A positive performance President’s Design In the year to 31 March 2015, our income grew to £1.13bn, an Award, Singapore increase of 7.4% over the previous year. This was a positive Design of the Year performance that reflects the continuing demand for our services Fusionopolis 4 (Sandcrawler across a broad range of industries. Collaborating with our clients Building), Singapore on more than 13,700 projects, we grew our profits to £96.7m. Royal Institute of British Over the same period, staff numbers grew to more than 12,100. Architects (RIBA) We work from 92 offices on diverse and challenging projects European Award, Winner in over 119 nations. For us growth in itself is not an intrinsic aim, Library and Learning Centre, but we are excited at the prospect of offering our clients an even Vienna, Austria greater breadth and depth of capabilities in National Award, the years to come. King’s Cross Station, London, United Kingdom Looking ahead The slowdown in China remains a concern for us, particularly Tunnelling Association as it could adversely affect linked economies. We will stay fully of Canada Awards alert to these issues but will take comfort from the fact that we Canadian Project Award Winner have emerged stronger after the 2008/09 financial crisis, through Billy Bishop Toronto Airport, continued investments into our unique combination of quality, Pedestrian Tunnel, Toronto, Canada expertise and innovation. World Architecture Guardian Sustainable In partnership with our clients, we are united in our determination Festival Award Business Awards to tackle the world’s most pressing economic, social, environmental Sports Building of the Consultancy of the Year, Winner and technical challenges in our fields of expertise. From global Year Award, Winner cities to local communities, we are helping to design a world , Singapore Selected awards Helping our clients meet their biggest challenges Global Most Admired Knowledge that is more resilient, more efficient and more enjoyable to live Enterprises MAKE The world faces a number of pressing challenges where our Zumtobel Group Award in. Focussing on the difference we make, I am confident we will Winner American Council of Engineering skills can play a major role in helping our clients. We see these Applied Innovations, Winner Companies (ACEC) continue to combine exceptional expertise with new thinking SolarLeaf, Hamburg, Germany as four related markets, all of which have some degree of overlap. , Green –– National Recognition Award to meet the complex challenges our clients face. Building Award –– New York, Diamond Award The first is cities. Rapid urbanisation is a defining Research and Planning for Engineering Excellence, global trend, particularly as developing economies Transportation Category Merit Award continue to coalesce around major population hubs. Our Shanghai Expo UBPA Delta Air Lines, JFK Airport, multidisciplinary capability means that we are ideally New York, NY, USA Redevelopment, China positioned to help our clients find powerful new solutions to –– Engineering Excellence Awards, complex, multifaceted challenges. Our work in Colombia Institution of Structural Grand Award on the Barranquilla Sustainable Cities project is a strong Engineers (IStructE) –– National Recognition Award example of this kind of holistic, progressive thinking. Gregory Hodkinson Structural Awards, Award for Sports –– New York, Diamond Award Chairman, or Leisure Structures, Winner for Engineering Excellence, The second – transport – is closely related to cities. Growing Adelaide Oval Redevelopment, Transportation economies constantly need to increase the capacity and South Australia, Australia Fulton Center, New York, NY, USA efficiency of their transport systems. That’s never more the Structural Awards, Award for Arts New York, Platinum Award for case than in cities where so many transport systems intersect. or Entertainment Structures, Winner Engineering Excellence, Special Projects Transformational projects like Crossrail in London or the School of Art, Reid Building, Hunter’s Point South, Tuen Mun-Chek Lap Kok Link in Hong Kong are prime Glasgow, United Kingdom Long Island Infrastructure, examples of the impact we are making. New York, NY, USA International Highrise Award The third market, energy, is an area fraught with political, social, Winner Association of Consulting environmental and technological challenges. We believe that Bosco Verticale, , Italy Engineers of Ireland (ACEI) our combination of professional knowledge and skills, allied to Best Large M&E Project, Winner a ‘can-do’ mentality, makes us an effective partner for public Japan Commercial Environment Airport Terminal 2, Design Association Award Co Dublin, Ireland and private clients attempting to develop energy solutions appropriate for a low-carbon future. The leading-edge thinking International Design Award, Grand Prize British Construction shown in the Smart Grid, Smart City project on Australia’s Ribbon Chapel, Hiroshima, Japan Industry Awards (BCIA) East Coast is typical of the impact we’ve made this year. Major Building Project of the Year Award, Winner The fourth market is water. It is essential to human existence, Aquatics Centre, but the world still struggles to supply, manage and treat it London, United Kingdom effectively – particularly against a background of global climate change. Finding new and better solutions is fundamental to China Civil Engineering Society economic and social development. Against this background I Tien Yow Jeme Civil Engineering Prize was particularly impressed with our work on three major water Hong Kong West Drainage Tunnel, treatment schemes in Hong Kong this year. It’s clear that they China will deliver substantial long-term benefits in a region where water quality and public health are a key priority.

8 9 Developing Exceptional work our people requires exceptional people. We’ve continued to invest in the areas that matter most as we build For nearly 70 years we’ve This scheme is part of our This in turn provides fertile held to the basic belief that broader international mobility ground for the kind of a firm where everyone quality is its own reward. programme, through which innovative thinking that Delivering the best possible about 5% of our people are pushes boundaries and opens work enhances our reputation working abroad at any given up exciting possibilities. can grow and thrive. and allows us to attract the best time. The ability to function in Actively investing in processes minds in our industry. It’s a different business contexts is that help this approach to virtuous circle that underpins essential to a firm whose client flourish is a core part of the the quality of everything we do. base is increasingly global, learning experience at Arup. and for whom it is important Investing in our future This year we have been rolling to have the right people in the This pursuit of quality doesn’t out an online learning platform right place at the right time. happen by accident. It is the that provides a significantly result of thoughtful planning Staying at the leading edge enhanced personal development and a deep-rooted culture that We operate at the forefront of environment for all our staff. actively prepares and supports rapidly-evolving technology. We’re also investing in Digital Recognition highlights our people as they respond to a To help maintain our leadership Workspace, a new intranet- Our ownership structure wide range of client challenges. position, we encourage based platform that integrates everyone to take part in training all of our collaborative means that we were able Tristram Carfrae Over time we have created and skills development. learning channels. Amongst to share two thirds of Gold Medal a network of development Institution of Structural Engineers other things, it provides programmes that enable Arup University lies at the our profit with all our (IStructE) a virtual space in which our people to fulfil their heart of our efforts in this Arup people with similar staff, with the balance own potential and optimise area. The Masters Module Peter Bailey professional interests can their contribution. programme offers a range of reinvested in the continual Top 100 Engineers explore and share new ideas. Engineers Australia Masters level courses in topics The process starts early. improvement of our such as Smart Cities, Business Promoting bright ideas Our graduate recruitment Florence Lam Economics, Energy Futures A firm like Arup attracts people, knowledge programme is designed to The Lighting Award and Transitions, and Building people with bright ideas, many Society of Light and Lighting attract bright young people and business. Information Modelling. Led by of whom have an ingrained with excellent technical academics and complemented commercial spirit. Our Rudi Lioe knowledge, who are keen by Arup tutors, these courses Venturing Initiative provides Structural Consulting Engineer to embark on a career in are designed to develop a a space in which staff can of the Year the built environment. In Association of Consulting Engineers much deeper understanding develop their own ideas with 2014/15 we recruited 630 Singapore (ACES) Young Consulting of a topic than would normally the ultimate goal of creating graduates around the world, Engineer of the Year Awards 2015 be expected in the course of new revenue streams. A number of whom 34% were women. day-to-day work. of ideas have already emerged, Yewande Akinola We were ranked 27th in including a comfort cooling The Outstanding Woman in Sustaining a The Times ‘Top 100 UK system for people waiting at Science, Engineering, Technology collaborative culture Graduate Employers public transport stops in hot and Mathematics The accumulation of The PRECIOUS Awards 2014’ – the highest ranked climates, and a ‘living wall’ technical or disciplinary engineering consultancy firm. system that enables plants to expertise is clearly essential Guy Hollingum grow in building façades. NSW/ACT Steel Excellence Early in their career staff can to our pursuit of quality. Awards, Young Designer of be selected for development But staff development at We are only as good as our the Year Award Winner assignments overseas. Lasting Arup goes further. people. By helping them to Australian Steel Institute (ASI) up to two years, these help fulfil their own potential, Our culture is built on to give junior staff a greater we believe that we can effective teamwork. understanding of Arup’s continuously raise the quality Generating ideas through global presence, as well as of our work, and differentiate a collaborative approach an opportunity to enrich their Arup in the eyes of our clients, challenges individuals to find professional experience. peers and colleagues. the best within themselves.

10 11 Designing Ribbon Chapel From the busiest global Hiroshima, Japan work of quality As technically challenging as it is beautiful, the award-winning cities to the most remote Ribbon Chapel in the grounds of a hotel in Hiroshima is a unique wedding venue. At its heart is a rural communities, we’ve glazed chapel with two separate external spiral staircases that intertwine to reach a common helped our clients meet a platform at the top. vast array of challenges in ways that reinvent today’s built environment.

12 13 Leadenhall Building Creating With a global network of inventive, London, United KIngdom inspiring highly skilled building engineers and Located in the heart of the City of London, the 46-storey Leadenhall spaces design specialists, we use advanced Building is an unashamedly technical and creative expertise to ambitious exercise in architectural engineering. It features an turn our clients’ ambitious goals into innovative external steel-braced megaframe which wraps around a practical reality. the internal tapering shape – an asymmetric profile which presented complex challenges Our work spans buildings as diverse as sports stadiums, for our structural engineers. Arup museums and galleries, educational and health facilities, provided structural and building cultural landmarks, industrial plants, laboratories, data centres, services engineering, vertical workplaces, retail schemes and residential developments. transportation, acoustics, lighting and security design services for It’s an eclectic mix, but whatever the scale and scope, this landmark building, now we’re united in our desire to help our clients push boundaries, popularly known to Londoners improve performance and ultimately create spaces that as ‘The Cheesegrater’. delight and inspire the people who interact with them. Engineering on the design frontier At 224m tall with 46 floors, the Taiwan’s Taichung National Theatre is constructed with building provides the highest a continuous double-curved concrete shell. To realise the offices in the City of London seemingly impossible design, we developed a new construction technique using mesh rather than complex formwork. The resulting six-storey building has already 224m become a cultural landmark for the city. Inspired by a tree house, the 12-storey Dr Chau Chak Wing With 85% assembled off site, Building at the University of Technology in Sydney, Australia, the building has achieved unprecedented levels of is the result of close collaboration between the architect and pre-fabrication for a high rise our building specialists. Its spectacular undulating brick and structure in the UK glass façades are echoed by the building’s interior where every space is distinct in size and shape, presenting contractors and designers with a highly complex challenge. Using innovative % Building Information Modelling software, we created a single 85 model for the scheme that enabled all the disciplines to deliver our distinctive vision. Arup is staffed by people Stadium sustainability Our design for Singapore’s new National Stadium is a model who have real faith in for future sustainable stadiums. Featuring the world’s largest technology, engineering free-spanning dome, the integrated facility is constructed around a 55,000-seat arena that’s configurable for all major and fact. They look at sports as well as live concerts and events. Its innovative energy- what they do every day efficient spectator cooling system delivers cool air to every seat, and question their designs yet significantly reduces energy consumption in comparison with conventional systems. The National Stadium will with a renewed vigour, reinforce Singapore’s status as a major international sports and driven by an insatiable entertainment destination. It has already won prestigious awards including Sports Building of the Year at the World Architecture desire to find the best Festival Awards 2014. solution. Materials innovation Property developer Mushroom mycelium, bound with agricultural waste, creates United States a strong resilient material that can be moulded into any shape, including bricks. But it is a new, virtually untried material. When a group of young architects were invited to build a concept tower at New York’s MOMA (Museum of Modern Art) made from ‘mushroom bricks’, they asked us to design the building’s structure to ensure the 40ft tower would withstand the elements during its three-month display period. The successful project showed that biological technology, with a near zero-carbon footprint, has an exciting future as a construction material.

14 15 Hong Kong Sludge Sustaining Treatment Facility essential Hong Kong, China Arup are receptive and We were the principal designer open to possibilities. resources of the new Hong Kong Sludge Treatment Facility, the largest They do not produce plant of its type in the world. mechanistic answers to The facility has a very low environmental impact and is our problems. They are entirely self-sufficient, generating Throughout the world, the issue of and exporting power to the regional original, creative and ever-scarcer resources is moving grid and processing seawater via lateral thinkers. a desalination plant. Located in relentlessly up the social and political a landmark building, the facility Energy provider also includes an environmental United Kingdom agenda, as nations struggle to come to education experience. terms with the impacts of population The quantity of sludge being sent growth, urbanisation and climate to landfill will be reduced by 90% change. Nowhere is this more keenly following treatment felt than with energy and water. 90% Both these elements are essential to human existence. But fossil fuel energy sources are limited, forcing the world to increase At full operational capacity, energy efficiency, reduce demand or develop renewable sources. in excess of 2MW of power is In the case of water, it’s a question of successfully balancing available daily to the regional In Ireland, we have been closely involved supply and demand, and acting to minimise the negative social electricity grid in the planning and design phases of and environmental impacts of factors like floods or drought. the Cork Lower Harbour Wind Energy Scheme. This project centres on the In both areas our advanced technical expertise is playing a construction of four 3MW wind turbines crucial role in finding smart solutions that align with our clients’ 2MW that supply renewable energy for Johnson environmental, social and commercial priorities. & Johnson’s nearby manufacturing plants. Building resilient systems We prepared the planning applications In the UK we are implementing the Flood Alleviation and environmental statement for the Scheme, which is designed to protect thousands of homes and project, as well as civil and electrical businesses currently at risk. The scheme, which uses innovative engineering designs. In addition to moveable weirs, will also open up regeneration opportunities by boosting the plants’ competitiveness, making land safe for development. the turbines demonstrate the owner’s Hong Kong is one of the most densely populated places in commitment to renewable technology. the world, with an average of nearly 7,000 people per sq km. Resource analysis and management With these demands a resilient and efficient wastewater and For the Australian Government, we sewerage system is essential. We have played a key role in the co-authored Smart Grid, Smart City, development of the Harbour Area Treatment Scheme Stage 2A, a comprehensive assessment of the one of Hong Kong’s largest ever sewage projects. It is designed future cost benefits of deploying various to convey all sewage from the Victoria Harbour area to the main smart grid technologies across different sewage treatment plant at Stonecutters Island, for chemically electricity networks in Australia, using enhanced primary treatment and disinfection. Now completed, information gathered from four years of the project is serving the needs of approximately 5m people. trials. Analysis and modelling showed that implementing certain smart grid technologies and tariffs could generate an economic benefit of more than AU$27bn over the next 20 years.

16 17 Crossrail London, United Kingdom Distance of bore tunnels Connecting Around the world our planners, underneath London Currently the largest underground people and designers and engineers are helping civil engineering project in Europe, Crossrail is a 118km east-west rail places to create and enhance transport link that will increase London’s rail 42km infrastructure that provides the critical capacity by 10%. With our joint venture partner, we are providing connection between people and a broad range of services for the Increase of London’s rail capacity project, including design for 42km places. Our particular strength lies of twin-bore tunnels directly under the city centre. % in finding solutions to our clients’ 10 most demanding technical challenges – whether that’s in rail, road, ports or aviation.

Success means more than meeting current demands, it means helping our clients look to requirements in ten, 30 or 50 years’ time – creating infrastructure with the capacity to adapt to a world that’s constantly changing. It also means thinking holistically to integrate transport at the heart of complex urban networks where sustainable solutions have become increasingly important. It’s an extraordinary challenge where our mix of deep specialist knowledge and sheer technical ingenuity allows us to expand horizons and meet the highest client expectations. The urban transit challenge One of the most congested transfer points on the New York subway network was at Fulton Street, where nine lines converge. To alleviate congestion and boost economic vitality, the transit authorities opted to build a new US$1.4bn transit hub, with us as lead consultant. Now complete, this massive project involved constructing the main transit centre building, rehabilitating four stations linked to two further stations and building a new underground pedestrian concourse. The Fulton Center now provides easy connectivity between ten lines. In Tianjin, northern China, we provided architectural, structural, acoustic and other ancillary services for the striking, shell-shaped roof of the city’s new Yujiapu Traffic Hub, terminus for the Beijing-Tianjin high-speed rail link. The 114m-long single-layer lattice roof is the largest of its kind in China. It features a double helix dome formed from 72 spiral beams covered with a combination of glass panels and ETFE membrane. The iconic roof has become a symbol for Tianjin’s future as the financial centre of northern China. Seamless transition Chhatrapati Shivaji International Airport in Mumbai is one of the world’s busiest, with more than 30m passengers transiting in 2014. Recent traffic growth prompted replacement of the existing Terminal 2 with a new structure. Our team of specialist consultants, drawn from across the globe, successfully managed the seamless transition of all stakeholders, including 40 airlines, into the new T2 without suspending flight operations. We also acted as lead consultant on the recently completed Gold Coast Light Rail project in Australia. The 13km line has 16 stations and links key areas along the coast, relieving the congested coastal highway. Our designers developed innovative construction techniques to reduce time and cost on the numerous bridges and viaducts along the route.

18 19 University Library A living laboratory Finding a and Learning Centre Following the 2010/11 earthquakes better way Vienna, Austria in , New Zealand, our IT Vienna University Library and and management consulting specialists Learning Centre is a striking collaborated on a world-first initiative example of contemporary called Sensing Cities. It involved architecture for which we created locating sensors within the city to collect the internal and external lighting design. Inspired by the architectural continuous real-time information on design of two separate intertwined a wide range of variables including Arup is perhaps best known for its structures within one space – the pedestrian and vehicle traffic flow, water creative and technical contribution lighting reinforces and echoes the and air pollution. The purpose is to obtain structure through subtle use of empirical data about environmental and to some of the world’s most iconic curved, linear and cove lighting. other trends developing in the city. This It’s a fine example of lighting design data will then drive future applications, structures. Our portfolio of skills playing a key role in the overall impact of an exciting new building. services and decisions in a wide range also extends across a wide range of of sectors. In effect, it is transforming Christchurch into a living urban laboratory. specialist services from planning and Number of students operational consultancy to change management and organisational 25,000 development, lighting and acoustics to landscape architecture and green Number of staff infrastructure development. The breadth of disciplines 1,500 that can be tapped, Our consulting work is characterised by a determination especially in unanticipated to use our specialist technical expertise to optimise outcomes for our clients. In the process we aim to ‘find a situations midway through better way’ – enhancing the performance of diverse assets a project, distinguishes (beyond expectations) to create lasting positive impacts. Arup from other firms. Adapting to audience needs Stormen Kulturkvartalet is a new multifunctional cultural Regional government centre located above the Arctic Circle in the north of Norway. Canada We were appointed to provide specialist acoustic, theatre planning and technical systems from concept through to completion. The key challenge was to create a world-class experience for audiences whether they are attending a concert, play, cinema screening or conference. Our integrated, flexible solution ensures the venue can seamlessly adapt to these diverse acoustic and technical demands. The royal gala opening concert, watched by 10% of all Norwegians, received wide critical acclaim, putting Stormen firmly on the country’s cultural map. Trouble-free transition Once design was completed for Jet Blue’s terminal expansion at New York’s JFK Airport, the US airline called in our Operational Readiness, Activation and Transition (ORAT) team. This is a specialist discipline focussed on de-risking the activation of new services and facilities to ensure trouble-free transition from day one. The expansion project involved integrating a multitude of systems including state-of-the-art security facilities, passport control, passenger and luggage flow, signage and staff training. The task of the ORAT team was to ensure that these tightly integrated systems were comprehensively tested and fully operational prior to the project’s November 2014 opening.

20 21 Making a Hunter’s Point South At the heart of Arup is a Queens, New York, USA positive Hunters Point South, situated on New York’s East River opposite difference fierce desire to do the best Manhattan, was a former industrial hub that had recently fallen into a semi-derelict state. Ahead of a we possibly can. For our new development, we consulted local stakeholders to establish their priorities for the site. Equipped with clients, for society and for this information, we developed designs for a large waterfront park. Initiatives included playspace, a the wider world around us. planting zone, porous pavements and a range of measures to reduce stormwater flooding and water pollution. The park has helped breathe new life into a prime waterfront site.

22 23 Shanghai Star Harbour Across all aspects of today’s built Putting The first development in the Shanghai, China environment, the greatest contribution sustainability world to gain three major green Shanghai’s Star Harbour certifications: US LEED® Gold, development, comprising 34 we can make to a sustainable future at the core UK BREEAM® Excellent and Grade-A office buildings, is Asia’s Outstanding and China’s Green largest green business park. We is through the solutions we develop Building Evaluation Label 2- have been involved throughout and 3-Star certification design and construction, for our clients. Sustainability, in the embedding as many green fullest sense of the word, is core to strategies as possible, including a central energy plant, greywater/ every project we undertake. That #1 rainwater harvesting and reuse, a sophisticated waste means developing solutions that are recycling system and recycled The size of the development is construction materials. Low- efficient, flexible and far-sighted, using unprecedented, with a total gross carbon and energy conservation materials, resources and technology floor area of 3Mm2 spread over strategies include heat recovery, almost two kilometres fresh air CO2 monitoring and in ways that provide maximum return maximum use of natural light. with minimal negative impact. 3Mm2 It’s a collaborative, holistic approach that sees us sharing ideas The key difference Arup and exploring new possibilities with a wide range of project partners. Our focus on building new knowledge through offers is the ability to tell consistent investment in research and innovation is a big part the client that they are of this. The result is project outcomes that are not only resilient wrong. It took me a while and responsible but commercially efficient and effective. to realise the importance Sustaining a local economy of this. Most consultants In we have carried out an in-depth feasibility study for the proposed Foxwood Dam, a strategic initiative to tell the client what they stimulate socio-economic development in an economically want to hear. depressed area. We engaged with local agricultural stakeholders to establish a plan that would provide them with long-term Transport network provider economic sustainability. Our work predicts that building the United States dam will create 1,900 jobs, and that the project will account for 80% of the gross value added locally over a ten-year period. More than hot air Our Venturing Initiative, which provides a channel for developing employees’ ideas, has delivered two promising inventions this year. The award-winning Air Induction Unit is a device that provides ventilation in covered outdoor spaces. Though similar in function to a mechanical fan, it is more energy-efficient, quieter, simpler and safer. Already in use in the Hong Kong hospitality sector, it’s an innovative technology with a wide range of possible applications. Resembling a city bus shelter, the City Air Purification System sucks in exhaust fumes, passes the air through a pollution filter, and recycles clean air via a roof-mounted vent. The system reduces the concentration of air pollutants by 50%, and provides a pleasant atmosphere for people waiting at public transport stops on hot, heavily congested streets.

24 25 Making the most of waste Bosco Verticale Whilst our biggest contribution to a We are responsible for the design, Milan, Italy Walking construction and operation of the Siu Ho In the heart of one of Europe’s the talk sustainable future comes through our Wan organic waste treatment facility in most vibrant cities, we Hong Kong. The food waste will be treated worked with the architects on client work, we recognise that it’s as a project that is set to create a via anaerobic digestion and composting new standard for sustainable important for us to monitor our own technologies to create biogas and high- housing. A vertical forest of quality compost products. Surplus 900 3-6m trees, 5,000 shrubs performance and actions. This focus electricity, estimated to be sufficient to and 11,000 floral plants on ‘walking the talk’ is critical if we supply 3,000 homes, will be fed back on terraces up to the 27th into the grid. Odorous gas will be purified floor are helping to improve expect our clients to believe in our to meet environmental standards, and air quality, provide shade and reduce noise pollution. ability to build sustainable principles wastewater will be treated before discharge. We provided structural into their projects. Putting sustainability at the core and geotechnical designs, Caloundra South is a proposed new together with consultancy services on acoustics, town on Australia’s Sunshine Coast for To achieve this ambition, we have established a framework of vibrations, ground-borne key performance indicators that measure our annual progress 50,000 people. It is the largest project to noise and tunnelling. receive a 6-star rating from the National against pre-set targets. During 2014/2015, for example, we Green Building Council. We led the reduced our carbon emissions per employee by 13%. Energy development of the project’s sustainability use in our offices was 1% lower than the year before. strategy which focussed on innovative We are also a signatory to the United Nations Global Compact, and creative ideas that would deliver a supranational initiative that seeks to create a sustainable and environmental excellence and resilience inclusive global economy that delivers lasting benefits to people, for the community. communities and markets. Creating zero energy communities As a signatory, we have undertaken to meet a set of fundamental To meet San Francisco’s ambitious goal responsibilities in the areas of human rights, labour, environment of converting to 100% renewable energy and anti-corruption. The terminology may have changed since by 2020, new models of energy generation our founder Sir Ove Arup delivered his Key Speech in 1970, are needed. We are assessing the feasibility but the underlying ethos is exactly the same: “to use our skills of increasing the number of Community as a force for good wherever we work in the world”. Integrated Renewable Energy projects. These projects encourage community members to share electricity supplied from renewable sources within a building or local area. As well as giving greater local control and lower energy costs, these schemes could ultimately lead to ‘net zero energy’ communities.

Carbon emissions reduction per 1% reduction in energy employee from 2013/2014 use from 2013/2014

% 13 212 kWh/m2/year

Paper use decrease Projects over £150k from 2013/2014 reporting specific sustainability objectives 34% 33.6%

Staff in offices certified to Donations to charities and ISO 14001 Environmental community organisations Management System and pro bono work 99% £1.43m

26 27 Our aim is to deliver a programme Making factories safer Helping people In April 2013 the Rana Plaza garment improve their lives of Community Engagement activities factory in Dhaka, Bangladesh, collapsed, killing more than 1,100 people. Our that is inclusive, integrated, inspiring experience in bringing engineering and impactful. With our partners, expertise into disaster response and recovery situations meant that we were we are working towards the day well placed to assess the structural safety when no person goes hungry, lacks of the country’s garment factories. In six months during 2014, we carried shelter or clean water and sanitation, out assessments of 750 factories. From faces social and economic exclusion our project office in Dhaka, we have worked with local graduate engineers or lives without access to basic to share our knowledge and experience, health services and education. making a significant contribution to the improvement of working conditions and the built environment in Bangladesh. Our founder, Sir Ove Arup, said: “Our lives are inextricably mixed up with those of our fellow human beings, and that Pacific disaster response there can be no real happiness in isolation”. Social usefulness When Cyclone Pam struck the South continues to be one of our core values and this finds Pacific island nation of Vanuatu in expression in our ongoing commitment to charitable causes. March 2015, its 155mph winds destroyed thousands of homes, schools and buildings, Through our Community Engagement programme, we crippled communications and power actively encourage and support our staff to participate across networks, and compromised water a broad range of activities as part of our contribution to supplies. A Direct Response Team was shaping a better world. In 2014/15, we directly donated deployed from our Australasia Region £796k to charitable causes. to help the relief efforts. Staff also We also provide assistance through our pro bono raised funds and we donated a further programme, in which staff undertake community and AU$25,000 to humanitarian agencies. charitable work, with a contribution towards the costs Providing a platform for of approved projects. During the year Arup-sponsored vocational training pro bono work, measured by equivalent staff cost, was East Africa is one of the most impoverished valued at over £640k. Our staff provide significant input regions in the world and education is from their own, unpaid time, to deliver these projects that a key driver of poverty reduction and amounted to more than 7,000 hours over the same period. human development. While primary Enhancing prospects and improving livelihoods and secondary education is essential, In many parts of the world, communities face unimaginable the knowledge and experience necessary challenges every day. We feel a responsibility to support for marketable job skills are built at the these communities, to help them become more self-reliant higher education level. and resilient and not suffer in isolation. By providing We worked with the Mbesese Initiative technical assistance and support to our partners, we aim for Sustainable Development (MISD) – to pass on valuable skills that have a practical impact on a US registered charitable organisation communities, enhance prospects and improve livelihoods. – to develop plans to establish the Same Putting learning at the centre Polytechnic College, a vocational training In Cambodia, our team of volunteers has been enhancing institute, on a 150 acre site in the northern living standards for the villagers of Thnouh. Centred around highlands of . We have been Arup is a firm keen on construction of the village school, the project has been working with MISD in collaboration exploring innovation, extended to include provision of a clean hygienic water with the District of Same, California good design, and always supply. The school library is open to all, bringing knowledge to Polytechnic State University to prepare a the whole village, and the building also acts as a community masterplan for the campus which defines keeps sustainability in Bridges to Prosperity project the purpose and goals of the college and centre, strengthening local ties. We have ensured that the skills River Ciricito, Panama mind. A very progressive and construction methods have been passed on to local articulates a framework for the orderly craftspeople so that the sustainable design can be replicated For four months of the year, and efficient growth of the campus. engineering firm. in other villages. Panama’s River Ciricito floods, cutting off three villages from Real estate developer access to health centres, schools China and shops. In 2014, a team of our volunteers, working with the charity Bridges to Prosperity, travelled to Panama to build a 46m suspension footbridge across the river. As a result of their efforts, the villagers now have permanent access to education, health services and vital supplies.

28 29 Financial Our robust financial 1. Income (£m) 2. Profit (%) summary 1200 12%

performance provides real 1100 strength – sustaining our 1000 10% 900

ability to undertake projects 800 8% across the world, whatever 700 600 6%

the scope and scale. 500

400 4% During the year to March 2015, we continued to grow steadily in financial terms, generating a trading profit of 7.4% on income of £1.13bn Income 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (see graph 1). This represents a satisfactory result for our staff members, 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 our clients and for the long-term health of the firm. Our profit margin (see graph 2) has almost doubled in the last three years, £1.13bn bringing it back into the 7-10% range that we have consistently sought to achieve. This is indicative of a strong business that balances the interests both Income growth 3. Profit share per annum (£m) of clients and staff. It also provides long-term stability, enabling us to invest in the research, innovation and staff development that our clients expect. % 70.0 The profit share graph (see graph 3) shows the amount of money that is 7. 4 60.0 distributed to all our staff members in the form of bonuses. This year’s 50.0 figure is £64m, which equates to an average of 12% of salary for our Profit 12,000+ staff members. 40.0

We have changed the profit distribution model this year, which is reflected 30.0 in the graph’s significant 2015 upturn. The consequence of delivering on £96.7m our strategy has been an improved profit margin, which has enabled us to 20.0 return a greater share to our members of staff – helping us to attract and Profit as a percentage retain the high calibre people we depend on to deliver outstanding work of income 10.0 for our clients. 0.0 One of the best measures of how clients value us is through our forward % 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 order book. At the end of March 2015, forward orders stood at £950m 8.6 (see graph 4) continuing the upward trend of recent years. Profit shared with all This graph also shows the geographical distribution of our work. Our staff members UKMEA Region has traditionally been the core of our business, and it remains so today. A large proportion of the growth in recent years has 4. Work outstanding at year end come from Greater China (mainland and Hong Kong). This is a deliberate % consequence of our strategic plan to build a stronger base in key Regions, 66 1000 particularly with clients who value our ability to provide high standards of work anywhere in the world. A similar upward trend is also shown 900 across our other Regions. 800 Our financial performance represents continued progress towards our strategic goals. For our clients, it shows that we are a robust company that 700 is investing for the future. For our staff, it shows that our business model 600 is built on strong foundations, with an inherent core resilience that will safeguard us through changing business cycles. 500

400

300 Europe

200 Australasia Americas 100 East Asia Matthew Tweedie UKMEA 0 Group Finance Director 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

30 31 Structure Independence and good Locations and Australia Greater China Nigeria UAE Adelaide Beijing Lagos Abu Dhabi leadership governance provide strong Brisbane Chongqing Cairns Guangzhou Philippines Canberra Hong Kong Manila UK foundations for the firm’s Macau Perth Shanghai Poland Sydney Kraków long term success. Townsville Taipei Warsaw Tianjin Wrocław Glasgow Botswana Wuhan Leeds Gaborone Group Board Regions India London Brazil Hyderabad Arup’s strategy is set by We operate through five Rio de Janeiro Mumbai Romania Newcastle its Group Board, the board Regions – each responsible São Paulo Bucharest Nottingham of directors of Arup Group for geographic strategy and Indonesia Limited that is appointed management. Brunei Jakarta Russia Solihull Bandar Seri Begawan Moscow Winchester by the firm’s Trustees. The Ireland Group Board is responsible Cambodia Cork Serbia USA Americas for ensuring our long-term Phnom Penh Dublin Belgrade Boston success, financial security, Mahadev Raman Galway Chicago unity, well-being and Canada Singapore Houston Australasia Montreal Singapore Los Angeles sustainability. Peter Bailey Toronto Italy New Jersey Milan South Africa New York East Asia Colombia Cape Town San Francisco Gregory Hodkinson LM Lui Bogota Japan Durban Seattle Chairman Tokyo Johannesburg Washington DC Europe Denmark Credits Tristram Carfrae Paul Coughlan Copenhagen South Korea Vietnam Deputy Chairman Kuala Lumpur Ho Chi Minh City This document is produced and UK, Middle East and Africa published by Arup Germany Kota Kinabalu David Whittleton (UKMEA) Berlin Penang Spain Zimbabwe Designed by OPX, London Deputy Chairman Alan Belfield Düsseldorf Bulawayo Printed by Pureprint on FSC Frankfurt Mauritius Harare certified material Peter Bailey Bagatelle Thailand Bangkok Alan Belfield Business Networks Netherlands Turkey Peter Chamley We run eight business networks that operate globally to develop Ankara New Zealand Istanbul Michael Kwok areas of strategic importance Photography across the firm. Ngoolark Christchurch LM Lui Image courtesy of JCY Architects & Urban Designers and Dervilla Mitchell Architecture photographer Robert Ramsay Nille Julle-Sorensen Ove Arup Mahadev Raman © Harry Snowdon Aviation Sir Michael Bear Peter Budd Ribbon Chapel © Koji Fujii/Nacasa Non-Executive Director Energy For individual office & Partners Inc Ngaire Woods Ian Gardner contact details visit Leadenhall Building Non-Executive Director arup.com Image provided by British Land Highways and Properties Tony Marshall Crossrail tunnel Courtesy of Crossrail Ltd Officers of the Board Management Consulting Martin Ansley-Young Jim Quiter Hunters Point South Clare Bristow Image courtesy of Thomas Balsley Associates/WEISS/Manfreid and Matthew Tweedie Planning Jerome Frost photographer Wade Zimmerman Paul Robinson Shanghai Star Harbour Rail © Star Bund Colin Stewart Bosco Verticale © Paolo Rosselli Water

Mark Fletcher © Arup 2015. All rights reserved. Reproduction in whole or part prohibited without prior permission

32 Arup is an independent firm of designers, planners, engineers, consultants and technical specialists, working across every aspect of today’s built environment. Together we help our clients solve their most complex challenges – turning exciting ideas into tangible reality as we strive to find a better way and shape a better world. arup.com