AECOM Annual Report 2007

AECOMAnnual Report 2007

Sustaining our future

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Sustaining our futureContents

Overview01 Introduction02 Company at a glance03 Financial highlights

Business review04 Chairman and

President / Chief Executive Officer’s statement06 Chief Operating Officer’s statement

External perspective07 Introduction08 Los Angeles Rail Projects10 Shenzhen Coastal Park System, China12 National Australia Bank, Melbourne 14 Harbor Area Treatment Scheme, Hong Kong 16 Scottish Marine Renewable Energy18 University of Dubai20 Canada’s Distant Early Warning Line Clean-up22 U.S. FEMA Nationwide Disaster Response Contract 24 Joint Readiness Training Center, Fort Polk, Louisiana26 Global project review

Internal perspective28 Introduction29 Our culture and values30 Recruiting the new generation32 Employee engagement / Training and development34 Sharing knowledge / AECOM Community Trust /

Sustaining our future36 Executive Board

Financial statements 38 Introduction39 Chief Financial Officer’s statement40 Shareholder information / Forward-looking

statements41 Registered auditor’s statement 42 Selected financial data44 Condensed consolidated balance sheets46 Condensed consolidated statements of income47 Condensed consolidated statements of cash flows

48 Board of Directors and Committees

Front coverWith a span of 1,088 meters,the Sutong Bridge acrossChina’s Yangtze River is theworld’s longest cable-stayed bridge. AECOMprovided comprehensiveconstruction engineeringservices for the project.

Following the successful IPO in May,AECOM has continued to maintain itsfocus on building a sustainable future.

Our expertise lies in planning, designing,managing and implementing projects in the facilities, transportation,environmental, energy, mining andgovernment agency markets.

We provide clients with top qualityservice, we deliver growth to shareholders,and we give our people an engaging work environment with outstandingprofessional development opportunities.


OverviewIntroduction


OverviewCompany at a glance

TransportationAs a recognized expert intransportation services,we offer complete supportthroughout the life cycleof transportation facilities.

We have providedfeasibility studies, plan-ning, design, engineering,construction management,and asset managementfor a variety of transport-ation projects worldwide,including transit and rail,highways and bridges,ports and harbors,marine and airports.

Planning and UrbanDesignOur work ranges from thecreation of urban spaces,streetscapes, transitcorridors, plazas andwaterfronts to historicpreservation districts,urban town centers andnew towns in metropolitan,regional, suburban andurban areas.

We strive to providequality design that issensitive to the identityand significance of theplace, taking into accountcultural assets, socialtraditions and economicchallenges.

Energy and MiningComprehensive, sector-specific expertise inenergy enables us tomanage and delivermajor projects around theglobe cost effectively andefficiently.

Energy services includetransmission anddistribution, renewableenergy, energy efficiency,sustainable design andthermal power generation.

Our mining expertiseranges from feasibilitystudies through engineer-ing and procurement.

Management SupportServicesOur experience inmanaging large-scaleservice contracts forgovernment agencieshas allowed us to meetmajor operationalchallenges around the world.

We specialize in programmanagement, operationsand maintenance,logistics, security andforce protection, commu-nications and informationtechnology, and trainingsupport.

We also help internationaldevelopment agenciesassist regions in need ofdemocracy, governance,humanitarian, and othersupport.

EnvironmentalLeading-edge technologyand practical solutionsdistinguish our water,wastewater, hazardouswaste management, andenvironmental projectsaround the globe.

We offer a full range of services, fromplanning and detaileddesign through to facilityconstruction and delivery.We aim to protect publichealth and safeguard the environment in theareas of water resourcemanagement, air quality,remediation andecological consulting.

FacilitiesWe deliver complexarchitectural, structuraland building servicesengineering design forpublic and private clientsaround the world.

Our portfolio includes awide range of buildingprojects in thecommercial,residential, leisure, retail,technology, high-rise,education and healthsectors.

We also address highlyspecialized requirementssuch as acoustics, fire,sustainability, security,building modeling,façade engineering,information technologyand telecommunications.

Projects on sevencontinents

Serving clients in more than 60 countries

Over 450 offices around the world

32,000 dedicatedprofessionals

7 60+ 450+ 32KOne companycreating a betterworld

1Annual revenue ofmore than $4 billion

$4BN

AECOM office locations


OverviewFinancial highlights

0.74

0.84

0.78

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1.15

Contract backlog (US$ billions)

137.46

46.59

77.57

0706

05

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121.27

Cash flow from operations (US$ millions)

Diluted earnings per share (US$)

3.42

2.40

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05

04

4.24

2.01

155.94103.41

98.30

86.63

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Operating profit (US$ millions)

Gross revenue (US$ billions)

Gross revenue split by geography

U.S. revenue 50%

Non-U.S. revenue 50%

2.49

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3.04

1.62

414.52127.87

54.35

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Cash and cash equivalents (US$ millions)

Gross revenue split by segment

Professional andTechnical Services 80%

Management SupportServices 20%

Diluted earnings pershare US$1.15 (55.4% increase)

Cash flow from operationsUS$137.46 million (13.4% increase)

Contract backlog US$3.04 billion (22.1% increase)

Gross revenue US$4.24 billion (24.0% increase)

Operating profit US$155.94 million (50.8% increase)

Cash and cash equivalentsUS$414.52 million(224.2% increase)


Business reviewChairman and President / Chief Executive Officer’s statement

Welcome to AECOM’s first annual reportas a publicly traded company.

Our initial public offering (IPO) on the NewYork Stock Exchange on May 10 was ahistoric milestone in AECOM’s evolution.The success of our IPO represented publicand financial community recognition ofwhat we have achieved since AECOM wasformed as an independent company in1990. Clearly, our long and proven trackrecord of delivering value through ahealthy combination of organic andacquisitive growth has resonated with the investment community.

While the IPO changed our corporateownership structure, it has not changedthe business model, strategy or culture thathave enabled AECOM to become a globalleader in professional technical andmanagement support services. Wecontinue to create shareholder value by delivering to our clients a uniquecombination of technical expertise andthought leadership, while leveraging aglobal footprint that differentiates us in the marketplace.

During the year, we achieved strongorganic growth, while also welcomingtwelve new companies into the AECOMfamily via our M&A strategy. Ouracquisitions during fiscal year 2007significantly strengthened our positions in Canada, China and Australia. We alsoaugmented our presence in the U.S.,particularly in the Midwest and Southeastregions.

Financial performanceIn fiscal year 2007, which endedSeptember 30, our revenue grew by24.0 percent to $4.2 billion and our netearnings increased by 86.8 percent to$100.3 million. For the year, we deliveredcash flow from operations of $137 million,an increase of 13.4 percent year over year.Our total backlog – work for which we have a signed contract (contract backlog)plus those projects for which we havebeen selected and are awaiting signature –increased to more than $6 billion.

These results represent a continuation ofthe solid performance we have historicallydelivered, reflecting the company’s abilityto execute its business strategy effectivelyand deliver consistent growth during eachof the last 18 years.

A diversified organizationDiversification is a key component ofour business model. AECOM’s uniquediversification – by end markets; by ourglobal footprint; by our technical skills;and by our healthy balance of organic and acquisitive growth – positions our company well to seize growthopportunities and mitigate potential risk.

For AECOM clients, diversification fostersour ability to deliver exceptional depth andbreadth of global technical expertise on a local basis. The ever-expanding scope of the types of projects we undertake alsobenefits AECOM professionals, who areable to work on exciting and professionallyfulfilling iconic projects within AECOM’sdiverse portfolio of work.

AECOM reports its business results in twosegments. Professional Technical Services(PTS) provides architectural, engineering,planning, design, program management,and construction management services.Management Support Services (MSS)provides outsourcing and logistical sup-port services, primarily to U.S. governmentagencies.

We serve a broad range of public andprivate clients spanning the facilities,transportation, environmental, energy,mining and government agency markets.Within these areas, we deliver an extensiverange of services from infrastructuredesign to sustainable development, fromtransportation planning to major transitprogram management, from environmentalpermitting for energy companies toremediation of contaminated sites, frommaster planning to architecture andbuilding engineering for major facilities.

Geographically, our operations now spanmore than 60 countries, with revenue splitevenly between U.S. and non-U.S. work.

“Our initial public offering(IPO) on the New YorkStock Exchange on May10was a historic milestone inAECOM’s evolution.”

John M. Dionisio, President and Chief Executive OfficerRichard G. Newman, Chairman (right)

Global opportunitiesThe world is currently facing seriouschallenges. Climate change is forcingentire industries to adopt new businessmodels. Developed countries arerecognizing that they have a collectiveresponsibility to protect the environmentfrom harmful emissions. Globally,accelerated urbanization is threateningexisting energy, water and transportationinfrastructure. Growing countries neednew infrastructure, while establishedeconomies are realizing that they have aduty to renew aging national infrastructure.

Our work brings us face to face with these global issues – and we welcome the challenge. Our skills as architects,engineers, planners, consultants andproject managers are in high demand aswe look to develop innovative, cost-effectiveand sustainable solutions to theseproblems.

Employee engagementAECOM, which was originally formed by its own employees, has always been acompany focused on its people – becausewe recognize that our future is dependenton our ability to attract and retain skilledprofessionals.

The results of our first global employeesurvey showed that our employees rankedAECOM highly in the areas of leadership,communication, teamwork and collab-oration when measured against therelevant benchmarks. These findings arealready helping us to shape employeeengagement strategies for the future.

Client focusAs a service organization, it is vital that wemaintain our focus on clients. In practice,this means consistently delivering solutionsthat meet or exceed our clients’ expecta-tions, both in terms of responsiveness and technical excellence. It also meansadhering to the highest standards ofintegrity, sharing global best practices,adapting to change, and pursuinginnovation. These factors enable us todifferentiate AECOM in all of our globalmarkets.

Engineering News-Record ranks AECOMas the No.1 pure design firm in theprofessional and technical services sector,as well as the consultancy with a broadglobal footprint. The scale and scope ofour professional expertise, combined withour global reach, give us the opportunity to undertake any project or contract thatwe pursue around the world.

Corporate social responsibilityAs part of our commitment to givesomething back to the communities in which we work, AECOM donatesapproximately two percent of net profit to projects and causes that benefit societyand local communities. In addition to ourcorporate financial commitment, ourpeople are actively involved in charitableand community projects around the world,and we are glad to provide a structure andfunding system to encourage these efforts.

Corporate governanceThroughout its history, AECOM has beenguided by a value system that emphasizesintegrity and trust at all levels of theorganization, shaped by a framework ofpolicies and practices to ensure that thecompany is managed in our shareholders’best interests. In addition, we arecommitted to upholding sound principlesof corporate governance and to meetingthe requirements of federal and state lawand the rules of the New York StockExchange.

AECOM’s Board of Directors comprisesrenowned thought leaders and expertswho are well respected for theiraccomplishments as well as their values.During fiscal year 2007, Norman Y. Mineta,former Secretary of the U.S. Department of Transportation under President George W. Bush, and former Secretary ofthe U.S. Department of Commerce, underPresident Bill Clinton, joined the AECOMBoard of Directors. The appointment of Secretary Mineta as an independentdirector provides an additional source of strategic advice that will significantlystrengthen the Company.

Early in fiscal year 2007, John Downerretired from the Board after over six yearsof invaluable service. We thank him for hiscontribution to AECOM’s growth.

We would like to thank Lee Stern for hiscontribution as an independent director of AECOM. Mr. Stern, a Managing Directorof GSO Capital Partners, resigned hisposition in September due to his othersubstantial business commitments.

We would also like to thank all of themembers of AECOM’s Board of Directorsfor their support and guidance, which hascontributed to our continued success.

Our futureAECOM is a global company capable ofdelivering its services locally throughoutthe world. We have a strong managementteam, a highly qualified and motivatedworkforce, a well-balanced portfolio ofprojects, and a broad mix of public andprivate clients on seven continents.

Our business model of diversification interms of end markets, global footprint andclient base – combined with a healthybalance of organic and acquisitive growth– has proved to be consistently successful.

The future for AECOM is exciting – for our clients, for our employees, and for our shareholders.

Richard G. NewmanChairman

John M. DionisioPresident and Chief Executive Officer


Business reviewChairman and President / Chief Executive Officer’s statement

Fiscal year 2007 was characterized bycontinued growth and expansion forAECOM as we further advanced ourglobal strategy.

Our strong business performance wasaccompanied by the evolution of ourorganizational structure in line withAECOM’s organic and acquisitive growth.As a result, we continued to enhance our regional and global business lines to best position the company to seizeopportunities in our key end markets.

We continued to achieve strong growth in the sustainable buildings and facilitiesmarket. In advancing this market,we acquired two facility design firms.Our strength in this area was noted in Engineering News-Record’s latestrankings, which identify AECOM as the No. 1 design firm for general buildings.

Our transportation business has continuedto grow in each of its geographic regions.Demand for highways, bridges, tunnels,airports and marine facilities is forecast tosignificantly increase in all of our keygeographies.

In the environmental market, we continuedto make significant advances in both water / wastewater treatment andenvironmental management. Thesemarkets are expanding rapidly as publicauthorities and private clients respond togrowing public demand for sustainablewater infrastructure. To capitalize on thismarket, we have also strengthened ourexpertise through M&A activity in the U.S., Canada and Australia.

In the management support servicesmarket, we reinforced an already strongpresence. Currently driven primarily by theU.S. government, this market offers theadvantage of low-risk projects combinedwith long-term growth potential.

In support of our business objectives,we have created the Office of CorporateDevelopment, which will integrate ourCorporate Communications, HumanResources, Information Technology, andOrganizational Development functions towork more closely with our operations.

Throughout the year, we made significantinvestments as we continued to focus onimproving quality and risk management.

As a global leader in professional technicaland management support services,AECOM is uniquely positioned to continueto deliver quality services to our clientsthroughout the world. This global reachdifferentiates us to existing and prospec-tive clients and to current and potentialemployees. It has also enabled us todeliver growth to our shareholders.

James R. RoyerChief Operating Officer

“In the managementsupport services market, we reinforced an alreadystrong presence.”


Business reviewChief Operating Officer’s statement

James R. RoyerChief Operating Officer


External perspectiveIntroduction

We plan, design, manage and implementfacilities, transportation, environmental,energy, mining and government agencyprojects around the world.

Our project work involves deliveringextensive technical expertise, backed by outstanding management skillsand a firm commitment to sustainability.

In everything we do, we aim to add value on behalf of our clients.

External perspective08 Los Angeles Rail Projects

Driving the transit evolution10 Shenzhen Coastal Park System, China

Protecting a natural resource against encroaching development

12 National Australia Bank,Melbourne Sustainable design for officebuildings

14 Harbor Area Treatment Scheme,Hong Kong Restoring water quality in Hong Kong

16 Scottish Marine Renewable Energy Harnessing renewable power

18 University of Dubai An oasis of learning

20 Canada’s Distant Early Warning Line Clean-upRestoring the natural Arctic environment

22 U.S. FEMA Nationwide Disaster Response Contract Disaster recovery for communities

24 Joint Readiness Training Center,Fort Polk, LouisianaSupporting government and society

26 Global project review


Los Angeles Rail ProjectsDriving the transit evolution

External perspectiveLos Angeles Rail Projects

Los Angeles has had a long love affair with the automobile. But with its 10 millionpeople facing growing freeway congestionand air pollution, the Los Angeles CountyMetropolitan Transportation Authority(Metro) is investing heavily in thedevelopment of a comprehensive transitsystem.

Modern rail transit services started in the1990s with the opening of the Red Linesubway and two light rail systems, the Blueand Green Lines. Since the millennium,another light rail line – the Gold Line – has opened.

Now we are working with the Metro toextend the Gold Line by six miles out toEast Los Angeles. When the US$912 millionEastside Extension project is completed in2009, it will increase mobility in some of thecity’s most densely populated neighbor-hoods and offer a viable alternative to thearea’s 60 overcrowded bus lines.

Across town, we have been closelyinvolved in the Mid-City/Expo Line which is currently under construction. The projectwill ultimately link Santa Monica to down-town Los Angeles. Phase 1 involvesbuilding an 11-station, 9.6-mile line,scheduled for completion in 2010, fromdowntown to Culver City. Phase 2, which is currently in the planning stages, involvesan additional seven stations and eightmiles of light rail.

AECOM has a long working relationshipwith the Metro, having been the generalengineering consultant (in joint venture) forthe Blue and Green Line light rail projectsand for the Red Line subway project.

Through all our work for the Metro, we havehelped to make Los Angeles a better placeto live and work.

Los Angeles, California, USA

The population of Los Angeles is forecastto reach 10.9 million by 2009.

10.9MM

The Eastside Extension is expected toattract 27,000 daily riders by 2020.

27,000


External perspectiveLos Angeles Rail Projects

“There’s a lot riding on our transportationsystem. Our economy depends on theability to move people and goods reliablyand efficiently. Implementing our ShortRange Transportation Plan will createalmost 100,000 jobs and generate over$10 billion for our economy over the nextsix years. Our air quality also relies on ourtransportation system. Since our regionmust meet clean air standards by 2010,the need to implement our transportationpriorities is greater than ever.”Roger Snoble, CEO, Los Angeles CountyMetropolitan Transportation Authority(From Introduction to the Metro’s 2003Short Range Transportation Plan)

“Rail transit is changing the face ofLos Angeles. Air quality is improving,neighborhoods once isolated are nowconnected, and people have improvedaccess to the jobs, schools and recreationthat make L.A. famous. Our work has trulyhelped to make this little part of the worlda better place.”Steve Polechronis, Senior Vice President,AECOM


External perspectiveShenzhen Coastal Park System, China

Shenzhen Coastal ParkSystem, ChinaProtecting a naturalresource againstencroaching development

Shenzhen, China

In the past 20 years, over US$30 billion of foreign capital has been invested inShenzhen, primarily for building factoriesand forming joint ventures.

30BN

Shenzhen is one of the fastest growingmetropolitan areas in the world.

Grow

The Chinese city of Shenzhen scarcelyexisted 25 years ago; today it has apopulation of 10 million. Left unchecked,development-driven growth would swallowup one of the few remaining pieces ofunspoiled nature in the Pearl River Deltaregion. Recognizing the threat, Shenzhen’splanning bureau asked AECOM to developa plan to protect a 150-square-kilometerarea of its coastline.

Using methodical research, analysis andsite surveys, AECOM delivered sustainabledevelopment and sensitive resourcepreservation recommendations to thecity’s planning authorities. The result is acomprehensive vision for a coastal parksystem that will support future recreationaland tourism development as well as fosterecological preservation. The plan preservesa unique coastline with reserves for parks,forests, mountains, water systems, beachesand terrestrial freshwater and marineecosystems, achieving a balance betweendevelopment and resource protection.

The study is helping Shenzhen’sgovernment assess the impact ofdevelopment on the area’s fragileenvironment by evaluating the value of its landscapes and how they can bepreserved while still accommodatingexpected economic growth.

The creation of a methodical system of coastal parks and municipal-levelecological reserves is a profoundlyprogressive one for China. AECOM’s visionwill provide a much-needed natural foil to Shenzhen’s inner urban core, enabling the city’s future growth to be much moresensible ecologically, and help localauthorities reposition Shenzhen as acoastal city.


External perspectiveShenzhen Coastal Park System, China

“Contrary to earlier growth in Shenzhenwhich was very much development-driven, this coastal plan ensures that thecultural and environmental resources arewell integrated into Shenzhen’s emergingidentity as a coastal city.”Frank Chow, Project Principal, AECOM

National @ Docklands received a4-Star rating by the Australian BuildingGreenhouse Rating scheme (ABGR).

National Australia Bank,MelbourneSustainable design foroffice buildings

The entire building moves from full toaccess lighting at 7.00 p.m. each weekday.

7.00

In Melbourne’s up-and-coming Docklandsprecinct, we have helped National AustraliaBank set the precedent for office buildingsustainability.

Designed from the inside out, National @Docklands is a highly efficient workplacethat not only supports the needs of thebusiness, but also looks after the healthand wellbeing of employees and theenvironment.

The development consists of two low-rise,highly transparent buildings connected by sunlight-filled atriums. It features aninnovative mixed-mode ventilation systemwith operable façades, radiant heatedslabs and natural ventilation throughthermal chimneys. In fresh air ventilatedzones, people can open windows, andwork either outside or in glass greenhouse-style environments.

Glare screens on the exterior of thebuilding reflect daylight onto the ceilings of the northern and eastern façades,reducing glare and eye strain. Thisensures that people are able to workcomfortably in natural light all day.

The building’s lighting system has beenspecifically designed to almost halve theenergy demand compared with similar-sized buildings. The saw-tooth roof allowssunlight to penetrate the building even on overcast days, reducing the need forartificial lighting. The entire building movesfrom full to access lighting at 7.00 p.m.each weekday.

National @ Docklands has received a 4-Star rating by the Australian BuildingGreenhouse Rating scheme (ABGR),the organization that assesses Australianbuildings for energy efficiency ratings.This rating is based on the amount andtype of energy the building consumes in ayear, and reflects the building’s sustainabledesign, management and energy use.


External perspectiveNational Australia Bank, Melbourne

Melbourne, Australia


External perspectiveNational Australia Bank, Melbourne

Harbor Area TreatmentScheme, Hong KongRestoring water quality in Hong Kong

The name “Hong Kong” literally translatesto mean “fragrant harbor,” but Hong Kong’sVictoria Harbor needs to improve to make itso. A population of 4.7 million lives in thearea that surrounds the harbor, and HongKong’s Drainage Services Department hasbeen fighting a constant battle againstsewage pollution for over 20 years.

In 2001, they reached a milestone whenthe first stage of the Harbor Area TreatmentScheme (HATS) was completed.Thisinvolved building a 23km system ofunderground tunnels to collect and carrymillion of tons of sewage from KowloonPeninsula and the northeastern part ofHong Kong Island to Stonecutters Island,for treatment at one of the world’s largestsewage treatment plants.

This accounted for 75 percent of HongKong’s sewage, and significantly improvedwater quality in Victoria Harbor. But 25percent of the effluent was still not properlytreated. The Government launched Stage2A of HATS. A key component of the Stage 2A works is to build a sewageconveyance system of deep tunnels toconvey the remaining raw sewage to theStonecutters Island treatment facility forenhanced treatment and disinfection.

AECOM is responsible for the investigation,design, tender documentation, construc-tion supervision and contract managementof this US$650 million sewage conveyancesystem project. The planning and designprocess is now well under way, andconstruction will start in 2009. The projectis scheduled for completion in 2014 – atwhich point Hong Kong should be able to reclaim its title of “fragrant harbor.”


External perspectiveHarbor Area Treatment Scheme, Hong Kong

Sewage Conveyance System of HongKong Harbor Area Treatment Scheme is budgeted at US$650 million.

650MM

Hong Kong population density:6,350 people per km2

6,350Hong Kong SAR, China


External perspectiveHarbor Area Treatment Scheme, Hong Kong

“By completing [this project], we will beable to achieve most of our water qualitycriteria in the majority of the harbor area,thereby leading to a cleaner and healthiermarine environment.”K.K. Kwok, Permanent Secretary for theEnvironment, Transport and Works,Hong Kong

“As most of the 20km-long sewageconveyance system will be deep under-ground, the tasks required under theconsultancy are very complex andchallenging.”Ko Wing-hon, Assistant Director ofDrainage Services (Sewage Services),Hong Kong


External perspectiveScottish Marine Renewable Energy

Scottish Marine RenewableEnergyHarnessing renewablepower

Scotland already generates19 percent of its electricity from renewable sources,principally via hydro schemes and windfarms. Source: Scottish Renewables.

19%SEA study area, Scotland

Picture (right) courtesy ofMarine Current Turbines TM Ltd.


External perspectiveScottish Marine Renewable Energy

For the past 30 years, the waters off thecoast of Scotland have been producing oiland gas to help power the British economy.But North Sea production is now in decline,and the Scottish Government has a targetto produce 50 percent of its electricity fromrenewable sources by 2020. Consequently,it has begun to look for ways to harnessnatural renewable energy sources such aswave and tidal stream around its coastline.

As part of this process, AECOM wascommissioned to carry out a StrategicEnvironmental Assessment (SEA) with the aim of identifying the potentialenvironmental impacts of the varioustechnologies proposed for exploiting thewaves and tides. The study also examinedhow much energy could be generatedalong the west and north coasts.

The SEA, completed in 2007, looked at allrelevant marine, coastal and land-basedenvironmental issues ranging from marineecology, to fisheries, archaeology and the coastal landscape. It also identifiedmitigation measures and provided aprediction of the environmental effects.

The study revealed that wave and tidalstream energy can make a significantcontribution towards the goal of expandingenergy from renewable sources. Its finding will play an important role in thedevelopment of Scotland’s renewableenergy industry by helping to inform localand national marine energy policy.

The Scottish Government has a target toproduce 50 percent of its electricity fromrenewable sources by 2020.

50%

Scotland's estimated wave and tidalresource is over 20 gigawatts. The SEAconcluded that up to 2,600MW could bedeveloped by 2020 with minor effects on the environment. That represents 20 percent of Scotland's total electricitycapacity.

20GW

“I am determined that Scotland becomes a leader in this emerging industry, but it is vital that we understand how thesetechnologies interact with the environment.The SEA consultation will move usforward, providing essential information todevelopers, environmental organizationsand local communities who are involved in this industry.”Nicol Stephen, Deputy First Minister,Scottish Government

“Ultimately this strategic assessment willbe used to inform national and local leveldecisions on marine energy policy as well as individual developments.”Iain Bell, Project Director, AECOM

Dubai is currently experiencingremarkable development growth, as it re-invents itself for a post-petrodollarworld. But the emirate is not just buildinghotels, office buildings and apartments.It is also planning a new campus for theUniversity of Dubai, which AECOM hasbeen chosen to design.

The 70-acre campus will include nineuniversity buildings totaling 450,000square feet, to accommodate 8,000students.

The innovative plan envisions a high classlearning environment inspired by theorganic elements that make Dubai unique:desert, sea and oasis. But the practicalaspects are equally impressive.

Daytime temperatures in Dubai can top45°C (113°F) in the summer and rarely dropbelow 20°C (68°F). This provided achallenge and an opportunity to thedesigners: how to use the heat to reduceenergy consumption and make thebuildings more sustainable.

The buildings are carefully sited to takeadvantage of natural elements. On thesouthern side, glazing has been kept to a minimum to reduce solar gain, while thenorth-facing windows flood the buildingswith light. A boundary wall protects thecampus from hot southern winds, whileadmitting the cooler sea breezes from the north.

To reduce cooling loads on the buildings,a perforated trellis stretches over eachstructure, reducing the amount of sunlightfalling directly on the building. Modelingshows that this will reduce energyconsumption by up to 30 percent. Thetrellis simultaneously reflects sunlight andallows ventilation in the air cavity beneathit. Where the trellis protrudes over openspaces, its perforations cast elaboratepatterns inspired by Islamic geometry.

The buildings themselves are fitted withterra cotta shade screens to deflect directheat by absorbing sunlight, preventingglare and heat within the entry courts.Air space behind the screens providesample ventilation.

The landscape design reduces waterdemand by specifying native desert plantsand providing strategically placed shadetrees. A gray water reclamation system is used for irrigation, minimizing waterconsumption from public utilities, andproviding cost and energy savings.

The design fits the modern Dubai zeitgeist.It echoes the traditions of desert life, yetfulfills the emirate’s recent edict calling for energy conservation.

University of DubaiAn oasis of learning


External perspectiveUniversity of Dubai

Dubai, United Arab Emirates

Daytime temperatures in Dubai can top45°C (113°F) in the summer and rarely dropbelow 20°C (68°F).

45°C

The University of Dubai campus willinclude nine university buildings toaccommodate 8,000 students.

8,000


External perspectiveUniversity of Dubai

Canada’s Distant EarlyWarning Line Clean-upRestoring the natural Arctic environment

Some 300 miles north of the Arctic Circle,a line of 42 radar stations stretches from oneside of Canada to the other. The DistantEarly Warning (DEW) system, built in the1950s at the height of the Cold War, wasdesigned to provide advance warning of a Soviet aircraft or missile attack.

By the 1990s, the DEW Line had becomeredundant, but the stations had littered the previously pristine northern landscape with random waste dumps, discardedinfrastructure and contaminated soil.

The Canadian government launched a US$583 million clean-up program,appointing AECOM to develop the plan to demolish the buildings at 21 sites anddispose of the accumulated environmentalhazards.

The environmental project, one of thelargest in Canada, will remediate morethan 100 existing landfills and dump sites,develop new landfills, demolish existingfacilities, and remove contaminated soiland hazardous waste materials. The overallclean-up strategy aims to prevent themovement of chemical contaminants into the sensitive Arctic ecosystem, andprovides for the physical restoration ofthe sites.

To reduce costs and environmental risksand impacts of the project, the AECOMteam developed a unique design conceptthat uses permafrost – permanently frozen ground – to contain liquids whichpermeate landfills, as well as for thedisposal of contaminated soils.


External perspectiveCanada’s Distant Early Warning Line Clean-up


External perspectiveCanada’s Distant Early Warning Line Clean-up

DEW Line, CanadaAn insulating layer of granular material is placed over the landfill to promote theformation of permafrost through the landfillcontents, which inhibits the generation of liquids and prevents migration ofcontaminants into the surroundingenvironment.

By 2012, virtually every trace of the siteswill have been wiped clean – dismantled,buried or, in the case of hazardousmaterials, shipped south for remediation.Once again, the Canadian wilderness willhave been returned to its pristine state forthe enjoyment of its indigenous people. 06/09

Remediation work can only be undertakenbetween June and September each year.The harsh weather makes operationsoutside those months impossible.

When natural disasters strike the U.S., theFederal Emergency Management Agency(FEMA) is responsible for coordinating theresponse.

Since 1997, AECOM and joint venturepartner Earth Tech have been contractedby FEMA to provide infrastructure supportservices throughout the 50 states and U.S.territories.

Our assignments typically involve assessingand estimating damage caused by natural(floods, hurricanes, typhoons, earthquakes,tornadoes, snow and ice storms, landslides)or man-made disasters and assistingapplicants in identifying losses. FEMA usesthese cost estimates to process grants tothe states and to allocate the federal sharefor restoration or replacement of publicfacilities.

Other assignments include debris removalmanagement, insurance assessments,long-term recovery planning and customersatisfaction surveys. In essence, FEMAuses this contract for any professionaltechnical service associated with disasterrecovery and preparation to minimizedamage.

Over the past nine years, we havemobilized over 3,000 professionalpersonnel to locations throughout the U.S. and its territories to provide disasterrecovery assistance. Our people providedcoordination and project managementskills in the aftermath of the 9/11 attacks,as well as environmental assessmentanalysis and consultancy on removal of debris.

We deployed over 500 personnel inresponse to Hurricanes Katrina and Rita,250 in response to the 2004 Floridahurricanes, and 150 throughout 10 EastCoast states in response to HurricaneFloyd. We have also worked with FEMA in the Virgin Islands, Puerto Rico and thePacific island states.

Our present joint venture contract withFEMA, valued at US$200 million, covers abroad range of project management andtechnical expertise, including architecture,engineering disciplines, training, planning,debris management, damage assessment,cost estimating, construction managementand insurance assessment.

U.S. FEMA NationwideDisaster ResponseContractDisaster recovery for communities

FEMA Response Centers, USA


External perspectiveU.S. FEMA Nationwide Disaster Response Contract

In the wake of Hurricane Katrina,our education specialists identified over 5,000 cases where schools andcolleges required repairs. The total value of the suggested repairs was nearly US$1.5 billion.

5,000

Following a major natural or man-madedisaster, AECOM is required to deploy up to 300 personnel for an 8-12 monthcommitment to undertake recovery efforts.

300


External perspectiveU.S. FEMA Nationwide Disaster Response Contract

Joint Readiness TrainingCenter, Fort Polk, LouisianaSupporting governmentand society

Fort Polk, Louisiana, covers nearly 200,000acres. Its infrastructure includes over eightmillion square feet of buildings, three watertreatment plants, 100 miles of pipeline, anelectricity generating plant with 182 milesof transmission cable, and over 275 milesof paved roads.

It is home to the Joint Readiness TrainingCenter, the U.S. Army’s premier trainingcenter for light infantry and special opera-tions units. While the soldiers undergo thetraining that will prepare them for operations,AECOM people have effectively supportedthe management and operations of theinstallation to the point where it is one ofthe best in the Army.

We provide financial, purchasing andhuman resources management services to the base, as well as plumbing, electrical,gas, painting, HVAC and building servicesfor all the buildings. We also provide fleetmaintenance for over 2,500 pieces ofequipment, and manage over 7,000 lineitems of supply.

We also provide our clients with informationsystems, data processing, and networksecurity. Since providing these services atFort Polk, the installation has become thebenchmark for IT security best practices.

Our outsourcing support services armprovides program management strategiesto many federal agencies. Our goal is todeliver outstanding service levels thatrepresent excellent value for the taxpayer’sdollar.


External perspectiveJoint Readiness Training Center, Fort Polk, Louisiana

Fort Polk, Louisiana, USA

Fort Polk infrastructure includes an electricity generating plant with 182 miles of transmission cable.

182MI


External perspectiveJoint Readiness Training Center, Fort Polk, Louisiana

“Not only do we have state-of-the-arttraining facilities, we also continue toimprove the quality of life at Fort Polk with a number of new construction projects,including new housing and communitycenters, a new family restaurant, improvedchild-care and recreation facilities.”Garrison Commander, Fort Polk


External perspectiveGlobal project review

No.1 ENR ranking in transpor-tation and general building

Launch on the New YorkStock Exchange

2007

No.1

$4BNAnnual revenues of over U.S.$ 4 billion

University of IllinoisIllinois, USA

Pfizer Inc.Multiple locations, USA

Eisenhower Executive Office BuildingWashington D.C., USA

CSU NorthridgeCalifornia, USA

Dublin Light RailDublin, Ireland

Governors IslandRedevelopment PlanNew York, USA

Playa Vista Sports ParkLos Angeles, USA

Shanghai Chemical Industrial ParkShanghai, China

Paint Hangar, Robins Air Force BaseGeorgia, USA

New Yankee StadiumNew York, USA

Tokyo MidtownTokyo, Japan

The Advocate Newspaper Plant Louisiana, USA

Wolf Law Library,College of William and MaryVirginia, USA

Noble Wind FarmsNew York, USA

St James University HospitalOncology WingLeeds, U.K.

Adnams Brewing Distribution CenterSuffolk, U.K.

Multinational Force &Observers (MFO)Sinai

BW 8 at WestparkHouston, USA

Renegade overpassHouston, USA

South Austin RegionalWastewater Treatment PlantTexas, USA

Sun City Detention FacilityTexas, USA

Grand AvenueChicago, USA

Wetlands RestorationTexas, USA

Pasadena City Hall RenovationCalifornia, USA

Pima County Justice ComplexArizona, USA

Boulevard PlaceHouston, USA

Hialeah Gardens Senior High SchoolMiami, USA

Argyle Diamond MineWestern Australia, Australia

Cameco Uranium MiningSaskatchewan, Canada

Project Management ServicesToronto Transit CommissionToronto, Canada

Sharjah Maritime MuseumSharjah, UAE

The GateDoha, Qatar

Offshore E&P Environmental ConsultancyBrazil

Venice Lagoon RemediationVenice, Italy

Construction ManagementDenver International AirportDenver, USA

West Airfield Improvements,Orlando International AirportOrlando, USA

Coca-Cola Shanghai CampusShanghai, China

Sutong BridgeJiangsu, China

Kai Tak DevelopmentHong Kong SAR, China

Sentosa DevelopmentSentosa, Singapore

Sustainable EconomicDevelopment ProgramIndonesia

Financial Institution Reformand Expansion ProgramIndia

King’s College HospitalLondon, U.K.

Indiana Toll RoadIndiana, USA

Albany InternationalHangzhou, China


External perspectiveGlobal project review

450+

60+

32KOver 32,000 AECOMemployees worldwide

Over 450 offices around the world

Projects in over 60 countries

Virginia Statewide AgenciesRadio System (STARS)Virginia, USA

Bayport Container TerminalTexas, USA

Dan Ryan ExpresswayChicago, USA

Carilion Roanoke Memorial HospitalVirginia, USA

Chicago Lock HouseChicago, USA

Nong Shim Production FacilityRancho Cucamonga, USA

Marquette InterchangeMilwaukee, USA

South Lake Shore DriveChicago, USA

SMART SunGuide ITSFlorida, USA

Escanaba No. 3 Hydroelectric ProjectMichigan, USA

Lincoln Wind EnergyWisconsin, USA

Manpower GlobalHeadquartersMilwaukee, USA

Olde Stone Quarry HarborWisconsin, USA

Trump International Hotel and TowerChicago, USA

FEMA Floodplain MappingNationwide, USA

Coventry Sprint Bus Rapid TransitWest Midlands, U.K.

M6 Toll RoadWest Midlands, U.K.

Wallasea WetlandsEssex, U.K.

Nevada Test Site Contract Nevada, USA

Combat Services Support ContractKuwait

Global Maintenance and Supply Service (GMASS)Afghanistan

Cheshire Treatment PlantBNR UpgradeConnecticut, USA

Croton Water Treatment PlantNew York, USA

Provincetown WastewaterTreatment PlantMassachusetts, USA

Water Treatment Membrane PlantFlorida, USA

Blue Plains WastewaterTreatment PlantWashington D.C., USA

Cinco Ranch CommunityHouston, USA

Solar Energy FacilityEnvironmental ConsultancyCalifornia, USA

Canadian Light SourceSynchrotonSaskatchewan, Canada

Limerock PartnersHouston, USA

Brendale SubstationQueensland, Australia

Inner Northern BuswayBrisbane, Australia

Westlink M7Sydney, Australia

Maori Mental Health UnitAuckland, New Zealand

111 St. Bridge / Anthony Henday DriveEdmonton, Canada

Toronto International AirportToronto, Canada

Al Bustan ComplexAbu Dhabi, UAE

QIPCO Tornado TowerDoha, Qatar

Ain Khalid CommercialDevelopmentDoha, Qatar

Redevelopment ofFormer RefineryWyoming, USA

American Airlines Terminal,JFK International AirportNew York, USA

New Runway 10-28,Atlanta International AirportAtlanta, USA

Airport Expansion,Philadelphia Int. AirportPhiladelphia, USA

Improving infrastructureservice delivery in small townsChina

Alternative DevelopmentProgramAfghanistan


Internal perspectiveIntroduction

AECOM is a people business, underpinnedby a commitment to integrity and trust.

We respect and encourage our employees’ideas, diversity and cultures.

In everything we do, we strive to achieveexcellence.

Internal perspective28 Introduction29 Our culture and values30 Recruiting the new generation32 Employee engagement /

Training and development34 Sharing knowledge /

AECOM Community Trust /Sustaining our future

36 Executive Board

AECOM’s people are united by a commonpurpose – to enhance and sustain the world’sbuilt, natural and social environments.

Our experience shows that if we hire smartmotivated people and give them excitingchallenging projects, they repay ourinvestment in them by creating outstandingsolutions for our clients. In turn, this leadsto repeat business. It is a virtuous circle,from which all parties stand to gain.

Our culture and valuesOur people are consistently leveragingtheir dedication and professional talent tomeet the global challenges of today andtomorrow.

A common set of core values is at theheart of AECOM’s culture underpinningour enterprise.

Integrity: We are honest and ethical ineverything we do, and we create trust bykeeping our commitments and treatingeach other with mutual respect and dignity.

Employees: They make AECOM’s successpossible. We will continue to make AECOMa great place to work, and we will respectand encourage our employees’ ideas,diversity and cultures.

Clients: Our success is measured by thesuccess of our clients. We are passionateabout solving their problems, and committedto setting industry standards for clientservice.

Excellence: We strive to achieve excellencein all areas of the business – technical,operational and administrative – and wepride ourselves on achieving outstandingresults in everything that we do.

Innovation: We look for creative, new orbetter ways to deliver our expertise in alldimensions of our business.

Agility: In a rapidly evolving world, weembrace change, flexibility and adaptability.We look to anticipate changes in marketdynamics and to work with our clients tocapitalize on those changes.

Profitable growth: The pursuit of profitablegrowth is a key driver of our business.It enables us to continue to make invest-ments in our employees, in the search forinnovation, and in the communities wherewe are active.

These seven core values lie at the heart of everything we do. They define how wecan build stronger relationships with ouremployees and our clients – and theyultimately enable us to deliver growth toour shareholders and achieve our commonpurpose.


Internal perspectiveOur culture and values

Li Ying Zhu is a WaterEngineer from MainlandChina. She is nowworking in Hong Kongwhere AECOM isupgrading wastewatertreatment infrastructureat the venue where theOlympic equestrianevents will take placethis summer. The works

program has anextremely tightschedule, but the teamis determined toachieve the qualityrequirements within thetime constraints, andmake the Olympics atriumph for China – andthe world.

Living our values: excellence

“The Olympic spirit strivesfor excellence, and thatsense extends to all of uswho are creating theinfrastructure for the2008 Games in China.”

Li Ying ZhuWater Engineer

Recruiting the new generationGovernments and commercialorganizations recognize the need toexpand or refurbish their physicalinfrastructure, in order to maintaineconomic – yet sustainable – growth.

This need is driving massive globaldemand for professional and technicalservices, and management supportservices in all of our market sectors.For AECOM, this critical need representsboth a challenge and an opportunity.The essential services that we provide are central to the development andadvancement of global economies.They also represent the best way of delivering sustainability in our cities,our transportation networks and our water distribution systems.

Against this background, it is essential thatwe are successful in the global recruitmentof talented and dedicated technicalprofessionals by making AECOM a greatplace to work.

We are strengthening our links withuniversities and technical colleges aroundthe world to create greater awareness ofthe opportunities that working for AECOMcan offer.

Our recruitment program is active in eachof our geographical regions and includessponsoring tuition fees and summerinternships for students.

AECOM’s growth as a global companyhas added a further dimension to ourrecruitment appeal. We provide staff withthe opportunity to work on major projectsaround the globe, enabling them to sharetheir skills and learn how to get thingsdone in different cultural environments.

Right now, AECOM people are designingmixed-use developments in the MiddleEast, road networks in Australia, waterinfrastructure systems in China, masterplans and infrastructure for the 2012Olympics in London, and are programmanaging U.S. school developments.

These and similar great projects offer ourpeople the opportunity to enhance theirown professional skills, derive personalsatisfaction and make a better life not justfor their own families but also for thecommunities in which we all live. Making a difference is a key component ofeverything we do.

Internal perspectiveRecruiting the new generation


“On industrial remediationprojects, agility is criticalbecause we need to avoidpotential damage to thehuman, ecological andaesthetic environment.”

Shail’s work involvesengineering andmanaging brownfieldremediation projects,especially formerindustrial plants. Hispersonal journey hastaken him from India toAECOM locationsworldwide where he

works on high profileprojects in a fast-pacedenvironment. Beingagile is central to hisoutlook. It’s enabledhim to hone his skills inmultiple disciplines andto provide efficient highquality service to hisclients.

Shail PandyaChemical Engineer & Project Manager

Living our values: agility


Internal perspectiveRecruiting the new generation

David works in theTransport PlanningDepartment inSt Albans, U.K. Personalsupport and careerdevelopment in

AECOM isn’t a one-waystreet. Everyone isencouraged tocontinue the learningprocess throughouttheir career.

David BöhmGraduate Transport Planner

Living our values: employees

“Since joining AECOM I’vebeen encouraged to use myown initiative and ideas tosolve technical problems.This, plus the support of my fellow employees andopportunities for personaldevelopment, are the mainreasons why I enjoy myrole.”

Internal perspectiveEmployee engagement / Training and development


“Clients are at the core ofeverything we do. Whetherit’s devising innovativesolutions, delivering aquality product, or simplybeing available, we strive to exceed our clients’expectations at all times.”

Employee engagementThrough the AECOM EmployeeEngagement Advisory Team we continueto develop effective strategies forgenerating employee engagement at everylevel throughout the company, creatingenthusiasm, commitment, loyalty andprofessional fulfillment.

During this past year, we implemented acomprehensive Employee EngagementSurvey, which was sent to every AECOMemployee. The survey was designed toprovide our employees with the oppor-tunity to comment on every aspect of theenterprise – operations, management,benefits, work environment – and to let us know how they feel about working atAECOM.

The survey achieved an overall participationrate of approximately 80 percent, surpass-ing the average participation rate forcompanies similar to AECOM in sizeand global presence.

The excellent response rate indicated thatAECOM employees welcomed theopportunity to share their thoughts,concerns and comments in a candid andconfidential manner through the survey.

Overall, employees shared positivefeedback about AECOM, particularly withregard to the company’s ethics, integrity,leadership values and company image,as well as its client focus. According to theindependent consultants that coordinatedthe survey, AECOM’s overall surveyfindings ranked in the top quartile of globalprofessional services firms.

These results will guide us in advancingour policy and procedures to align themwith the needs of our people. In comingyears, we will repeat the EmployeeEngagement Survey, building on thedatabase of knowledge that the firstsurvey has established.

Training and developmentThe majority of our people work indisciplines where technological advancesare driving rapid change. To stay at theleading edge of these disciplines, ourpeople need to refresh their skills throughthe comprehensive training that is availableenterprise-wide. This is forming the foun-dation for the establishment of our AECOMAcademy.

We know from our years of experience of managing technical and professionalservices businesses that the investmentswe make in our employees will alwaysgenerate a strong return for the enterpriseand for our shareholders.

Yaye-Mah is part of aNew York-based teamthat providesengineering designservices on varioustransportation projectsincluding highwayreconstruction, facilities

and site-basedprojects. She’s beenwith AECOM for over six years and every dayhas been focused ondelivering great serviceto our clients.

Yaye-Mah BoyeCivil Engineer


Internal perspectiveEmployee engagement / Training and development

Living our values: clients

Internal perspectiveSharing knowledge / AECOM Community Trust / Sustaining our future


Sharing knowledge Our work brings us face to face with key global issues, such as urbanization,resource protection and sustainability.We consider ourselves thought leaders inthese critical fields, helping to shape futuredevelopment for governments and privateclients alike.

To support our people in this, we havetaken steps to strengthen our worldwideresearch and development capability,creating centers of excellence from whichour specialists can draw.

This resource is reinforced by our GlobalKnowledge Network. This intranet-basedsystem enables our people to shareknowledge amongst themselves throughspecialist discussion forums on subjectsranging from transportation planning tocarbon management and alternativeenergy. By sharing issues, they can resolveproblems more quickly to achieve bestpractices. Knowledge networking within a global business like AECOM createsopportunities to add value for our clients –to the ultimate benefit of employees andshareholders.

AECOM Community TrustAECOM not only helps to design and buildthe physical infrastructure that enablespeople around the world to travel, workand enjoy themselves. We are also a partof the fabric of the local communities inwhich we operate. We believe that we have a responsibility to support thesecommunities with funds and staff time.

Our commitment to corporate socialresponsibility is underpinned by thedevelopment of the AECOM CommunityTrust (ACT), which will have a mission tofocus on real and significant improvementsto people’s lives by mobilizing goodwill and expertise. Chaired by AECOM CEOJohn M. Dionisio, ACT will coordinate theworldwide charitable activities of thecompany. It will be funded from our currentcommunity budget which represents two percent of the company’s annualearnings before interest and tax.

Financial support is important, but we alsopay tribute to the efforts of our people.Their passion and commitment haveassisted a wide range of community andcharity initiatives during the past year, fromhelping out in schools to raising money forprojects in disadvantaged areas. In themajority of these cases, they devote theirown time and their professional skills tohelping these causes.

Sustaining our futureThroughout history, nations, communitiesand people have used natural and man-made resources to achieve economicgrowth, as they continue to do today.

But now the quest for growth is shadowedby the recognition that many of theseresources are finite, and that misuse ofthe environment may ultimately degradethe quality of life for generations to come.

A major part of our role is to design theinfrastructure and built environment ofthe future, and we are aware that we havea responsibility to shepherd preciousresources, to use them sparingly and toplan for the long term.

We are also aware that we need to “walkthe talk” by reducing our own corporatecarbon footprint. Throughout our opera-tions, we are finding new ways to cutenergy consumption in our offices, andpromoting staff use of sustainabletransportation for commuting.

It is an exciting time for our industry, ourcompany and our people. We are activelyengaged with the great challenges andopportunities of our times. With greatpeople, great projects and great clients,we look forward to building a better, moresustainable world.

Anuparma has a wealthof experience on large-scale projects includingtransportation, waterresources and masterplanning for newcommunities. She hasplayed a leadershiprole in initiatingsustainability and theincorporation ofsustainable design

strategies into herproject work. Thepursuit of profitablegrowth within asustainable frameworkis a key driver of herwork pursuits, and has created newchallenges andopportunities in herwork.

Anuparma SharmaSenior Project Architect-Planner & Project Manager

“Sustainable design is thehallmark of sound businessdecision making that leadsto profitable growth.”

Living our values: profitable growth


Internal perspectiveSharing knowledge / AECOM Community Trust / Sustaining our future

“Innovation has to be foremostin our understanding of howto push the limits of designand constructability on allprojects.”

Sue-Anne has been withAECOM for 10 years. Asa Project Architect forthe World Trade CenterTransportation Hublocated in New York City,she leads the designcoordination for the westportion of the $2.2 billion

transportation facility.Her goal is to achievenew ways of meldingcomplex deliveryprocesses withinnovative design, whileensuring sustainabilityprinciples.

Sue-Anne ChongProject Architect

Living our values: innovation

“When you’re makingprofessional decisions, youhave to act with integrity.You’ve got to be able tolook your clients in the eyewhen you meet them in thestreet.”

Since joining AECOM10 years ago, Andrewhas actively played aleadership role in thedevelopment ofAECOM’s Australianbuilding designbusiness, whichincludes major

healthcare andeducation facilities,civic, retail andcommercial buildings.Integrity is vital forattracting and retainingclients and employeesand improving workingrelationships.

Andrew SchofieldExecutive Director, Building Engineering

Living our values: integrity


Internal perspectiveExecutive Board

01 John M. DionisioPresident and Chief Executive Officer

02 Richard G. NewmanChairman

03 James R. RoyerExecutive Vice President and Chief Operating Officer

04 Michael S. BurkeExecutive Vice President,Chief Financial Officer and Chief Corporate Officer

05 Jane ChmielinskiGroup Chief Executive Officer,Corporate Development and Chairperson, Americas Transportation Group

06 Jack A. BaylisSenior Vice Presidentand Group Chief Executive Officer,U.S. Western Region

07 Francis S.Y. BongVice Chairman and Executive Chairman, Asia

08 Joseph E. BrownGroup Chief Executive Officer,Global Planning, Design and Development

09 Eric ChenSenior Vice President Corporate Financeand General Counsel

10 Robert L. CostelloChairman,Global Planning, Design and Development,and Environmental Management Groups

11 Raul A. CruzSenior Vice President and Chief Information Officer

12 Kennedy F. DaltonGroup Chief Executive Officer,U.K. and Europe,and Leadership Council Chair

13 Robert H. FischerSenior Vice President and Director of Operations

01 02

03 06

08

07

09

10

12

11

130504


Internal perspectiveExecutive Board

14 Paul J. Gennaro, Jr.Senior Vice President and Chief Communications Officer

15 Raymond W. HoldsworthVice Chairman, Corporate Development

16 Stephanie A. HunterSenior Vice President,Chief Administrative Officer and Corporate Secretary

17 James M. JaskaGroup Chief Executive Officer,Federal Services

18 Robert KelleherSenior Vice President,Chief Human Capital Officer

19 John L. KinleyGroup Chief Executive Officer,Canada

20 David N. OdgersVice Chairman and Executive Board Chair

21 Nigel C. RobinsonGroup Chief Executive Officer,Australia, New Zealand, Asia and Middle East

22 Glenn R. RobsonSenior Vice President, Finance and Chief Strategy Officer

23 Anthony C.K. ShumGroup Chief Executive Officer,Hong Kong, China and Asia

24 Lloyd R. “Skip” SorensonSenior Vice President and Chief Accounting Officer

25 Robert C. WeberGroup Chief Executive Officer,Global Environmental Management

26 Frederick W. WernerGroup Chief Executive Officer,U.S. Infrastructure

16 17

18 21 22 25 26

15

19 2320

14

24


Financial statementsIntroduction

Strategically, AECOM seeks to achievean even balance between organic andacquisitive growth, across geographies,technical skills and business lines.

In everything we do, we look forprofitable growth.

Financial statements38 Introduction39 Chief Financial Officer’s statement40 Shareholder information / Forward-

looking statements41 Registered auditor’s statement 42 Selected financial data44 Condensed consolidated balance

sheets46 Condensed consolidated

statements of income47 Condensed consolidated

statements of cash flows

Fiscal year 2007 was a strong financialyear for AECOM – one marked by oursuccessful initial public offering (IPO) in May. During the year, we enjoyedsignificant growth, while also strength-ening our balance sheet and positioningthe company for continued growth.

Balanced growthRevenues advanced by 24 percent duringfiscal year 2007, driven by a healthybalance of organic and acquisitive growth.Organic revenue grew by 15 percent,and a further $300 million of revenue wasderived from companies acquired in thepast 12 months.

Operating profit improved by 51 percent,and we increased our EBITDA marginsyear over year. Diluted earnings per sharealso increased – 55 percent – over fiscalyear 2006.

We continued to win new projects and signnew contracts at a record pace. Thisresulted in a significant increase inprojects underway as well as additionalnew projects in the pipeline. Our totalbacklog – work for which we have a signedcontract (contract backlog) plus thoseprojects for which we have been selectedand are awaiting signature – increased tomore than $6 billion.

Financial strengthOur successful IPO provided us with astrong balance sheet that we will leverageto continue investing in the organic growthof our business, while also delivering onour long-term objective of executingstrategic acquisitions. We finished thefiscal year with $415 million of cash andcash equivalents and long-term debt of$39 million. This balance sheet will allow us to continue to invest in our clients,employees, innovation and developmentas well as strategic acquisitions.

We are proud of our accomplishmentsduring this past year. More importantly,however, we are excited about theopportunities on the horizon for AECOMand on delivering continued financialsuccess – for our company and ourstakeholders.

Michael S. BurkeChief Financial Officer and Chief Corporate Officer


Financial statementsChief Financial Officer’s statement

“We are excited about the opportunities on thehorizon for AECOM and on delivering continuedfinancial success – for our company and ourstakeholders.”

Michael S. BurkeChief Financial Officer

Forward-looking statements

This Annual Report contains “forward-looking statements”— statements relatedto future events rather than statements ofhistorical fact. Forward-looking statementsoften address our expected futurebusiness and financial performance,and often contain words such as “expect,”“anticipate,” “intend,” “plan,” “believe,”“seek,” or “will.”

Forward-looking statements addressmatters that by their nature are uncertain.These uncertainties may cause our actualfuture results to be materially different thanthose expressed in our forward-lookingstatements. Some of the factors that couldcause or contribute to such differences are listed and discussed in Item 1A—RiskFactors of our most recent Annual Reporton Form 10-K. We do not intend, andundertake no obligation, to update anyforward-looking statement.


Financial statementsShareholder information / Forward-looking statements

Shareholder information

Corporate Office555 South Flower Street, Suite 3700Los Angeles, CA 90071-2300T 213-593-8000F 213-593-8727www.aecom.com

Independent Registered PublicAccounting FirmErnst & Young LLP

Corporate CounselGibson, Dunn & Crutcher LLP

Registrar and Transfer AgentComputershare Investor Services, LLC250 Royall StreetCanton, MA 02021T (US) 800-662-7232T (Outside US) 781-575-4238www.computershare.com

Primary Investor Relations contactPaul J. Gennaro, Jr.Senior Vice PresidentInvestor Relations and CorporateCommunicationsT 212-973-2982E [email protected]

Form 10-KA copy of our Annual Report on Form 10-K, as filed with the Securities andExchange Commission, will be furnishedwithout charge to any shareholder uponwritten request. Requests should be sentvia e-mail to [email protected] form 10-K can also be accessed onour Web site at http://investors.aecom.comwhere you can click on “SEC Filings.”

Annual MeetingThe Annual Meeting of Shareholders ofAECOM Technology Corporation will beheld on Wednesday, February 27, 2008 at9:30 a.m., at the Millennium Biltmore Hotel,506 Grand Ave, Los Angeles, CA.


Financial statementsRegistered auditor’s statement

Report of Ernst & Young LLP, independentregistered public accounting firm, oncondensed consolidated financialstatements.

The Board of Directors and StockholdersAECOM Technology Corporation

We have audited, in accordance with the standards of the Public CompanyAccounting Oversight Board (UnitedStates), the consolidated balance sheetsof AECOM Technology Corporation and subsidiaries at September 30, 2007and 2006 and the related consolidatedstatements of income, comprehensiveincome, stockholders’ equity, and cash flow for each of the three years in the period ended September 30, 2007(not presented separately herein) and inour report dated November 26, 2007,we expressed an unqualified opinion onthose consolidated financial statements.

In our opinion, the information set forth in the accompanying condensed consol-idated financial statements presented onpages 42 through 47 is fairly stated in allmaterial respects in relation to theconsolidated financial statements fromwhich it has been derived.

Los Angeles, CaliforniaNovember 26, 2007


Financial statementsSelected financial data

2007 2006 2005 2004

Results of OperationsRevenues $4,237,270 $ 3,421,492 $ 2,395,340 $ 2,011,975Net earnings 100,297 53,686 53,814 50,436

Financial PositionsCurrent Ratio 1.61 1.23 1.26 1.52Working Capital $ 597,655 $ 201,323 $ 170,643 $ 225,909Current Assets 1,576,463 1,093,875 822,261 716,295Total Assets 2,491,821 1,825,774 1,424,924 1,115,697Long-term Debt 39,186 122,790 216,183 105,182Equity and Redeemable Common and

Preferred Stock and Stock Units (See Note 1) 1,278,485 499,155 389,371 370,962Contract Backlog 3,042,786 2,486,127 1,978,632 1,618,999

Per Share Information (See Note 2)Basic EPS $ 1.37 $ 0.94 $ 0.93 $ 0.86Diluted EPS 1.15 0.74 0.84 0.78Equity and Redeemable Preferred Stock 14.61 6.87 6.09 5.77

Average Number of Shares OutstandingBasic 73,091 54,856 51,880 52,600Diluted 87,537 72,658 63,978 64,254

Selected financial data

For Fiscal Years Ended September 30(in thousands, except per share information)

Note 1: Amounts prior to 2007 include redeemable common and preferred stock and stock units classified as temporary equity in accordance with GAAP.Note 2: Share amounts presented prior to 2007 reflect the 2-for-1 stock split effected in the form of a 100% stock dividend on May 4, 2007.


Financial statementsSelected financial data

2003 2002 2001 2000 1999 1998 1997

$ 1,914,472 $ 1,746,973 $ 1,513,390 $ 1,379,750 $ 978,365 $ 842,654 $ 712,93336,890 23,087 17,556 17,709 10,580 5,383 2,867

1.52 1.32 1.41 1.43 1.52 1.45 1.45$ 213,801 $ 113,097 $ 151,235 $ 136,138 $ 90,901 $ 76,546 $ 58,974

702,457 572,202 517,550 455,961 264,079 246,119 190,7261,056,055 965,160 788,510 711,694 373,280 323,571 262,661

122,106 171,404 147,622 141,156 60,000 60,000 42,983

313,224 291,525 249,451 230,331 122,950 84,715 79,4541,660,031 1,706,254 1,579,222 1,573,720 774,468 750,106 754,108

$ 0.67 $ 0.45 $ 0.37 $ 0.47 $ 0.37 $ 0.21 $ 0.110.65 0.43 0.36 0.44 0.35 0.20 0.115.48 5.40 5.05 5.76 4.08 3.13 3.05

52,858 51,630 47,130 37,876 28,742 26,002 25,27857,178 54,002 49,408 40,022 30,106 27,076 26,022

Revenues (in thousands US$)

0706

05

04

03

02

01

00

99

98

97

4,237,270 3,421,492

2,395,340

2,011,975

1,914,472

1,746,973

1,513,390

1,379,750

978,365

842,654

712,933

Contract backlog (in thousands US$) Earnings per share US$ (diluted)

0706

05

04

03

02

1.150.74

0.84

0.78

0.65

0.43

01 0.36

00 0.44

99 0.35

98 0.20

97 0.11

0706

05

04

03

02

01

00

99

98

97

3,042,7862,486,127

1,978,632

1,618,999

1,660,031

1,706,254

1,579,222

1,573,720

774,468

750,106

754,108


Financial statementsCondensed consolidated balance sheets

Assets 2007 2006 2005

Current AssetsCash and Cash Equivalents $ 414,515 $ 127,870 $ 54,352Receivables 1,091,682 913,178 703,837Deferred Income Taxes – – 15,531Prepaid Expenses and Other 70,266 52,827 48,541

Total Current Assets 1,576,463 1,093,875 822,261

Property, Equipment and Improvements, Net 118,202 90,323 79,528

Other Noncurrent AssetsGoodwill 592,233 466,508 404,063Miscellaneous 204,923 175,068 119,072

Total Other Noncurrent Assets 797,156 641,576 523,135$ 2,491,821 $ 1,825,774 $ 1,424,924

Condensed consolidated balance sheets

September 30, 2007, 2006 and 2005 (in thousands, except share information)


Financial statementsCondensed consolidated balance sheets

Condensed consolidated balance sheets (continued)

September 30, 2007, 2006 and 2005 (in thousands, except share information)

Liabilities and stockholders’ equity 2007 2006 2005

Current LiabilitiesNotes Payable $ 1,926 $ 2,716 $ 4,165Accounts Payable 228,350 265,192 179,810Accrued Liabilities 491,989 365,548 273,856Billings in Excess of Costs 192,400 143,283 122,825Income Taxes Payable 42,664 35,646 11,373Other 21,479 80,167 59,589

Total Current Liabilities 978,808 892,552 651,618

Long-term Debt 39,186 122,790 216,183Other Deferred Liabilities 174,253 112,970 126,243Minority Interests 21,089 18,701 9,724Commitments and Contingencies

Redeemable Common and Preferred Stock and Stock Units – 771,207 622,140Notes Receivable from Stockholders – (36,552) (36,103)Redeemable Preferred Stock, Class D – – 75,000Redeemable Preferred Stock, Class F – 117,500 –Redeemable Preferred Stock, Class G – 117,500 –

Stockholders’ EquityCommon Stock 991 – –Preferred Stock 4,978 – –Stock warrants issued with Class D

convertible Preferred Stock – – 1,605Additional Paid-in Capital 1,224,164 (254,225) (176,089)Retained Earnings 74,563 – –Accumulated Other Comprehensive Loss (26,211) (36,669) (65,397)

Total Stockholders' Equity 1,278,485 (290,894) (239,881)$ 2,491,821 $ 1,825,774 $ 1,424,924


Financial statementsCondensed consolidated statements of income

2007 2006 2005 2004

Revenues $ 4,237,270 $ 3,421,492 $ 2,395,340 $ 2,011,975

Costs and ExpensesCost of Revenues 3,076,092 2,515,684 1,717,863 1,443,419Equity in earnings of joint ventures 11,828 6,554 2,352 2,517Selling, General and Administrative Expenses 1,017,067 808,953 581,529 484,446

Operating Profit 155,939 103,409 98,300 86,627Other Income / ExpenseMinority Interest 16,404 13,924 8,453 3,239Interest Expense, net 3,321 10,576 7,054 6,968Miscellaneous Income, net 11,286 – – –

Total Other Income, net 8,439 24,500 15,507 10,207

Earnings Before Taxes 147,500 78,909 82,793 76,420Income Tax Expense 47,203 25,223 28,979 25,984Net Earnings $ 100,297 $ 53,686 $ 53,814 $ 50,436

Net Earnings Per ShareBasic $ 1.37 $ 0.94 $ 0.93 $ 0.86Diluted $ 1.15 $ 0.74 $ 0.84 $ 0.78

Condensed consolidated statements of income

For the Years Ended September 30, 2007, 2006, 2005 and 2004 (in thousands, except per share information)


Financial statementsCondensed consolidated statements of cash flows

Condensed consolidated statements of cash flows

For the Years Ended September 30, 2007, 2006, 2005 and 2004 (in thousands)

2007 2006 2005 2004

Cash Flows from Operating ActivitiesNet earnings $ 100,297 $ 53,686 $ 53,814 $ 50,436Depreciation and amortization 45,126 39,830 19,928 12,918Equity in earnings of unconsolidated joint ventures (11,828) (6,554) (2,352) (2,517)Distribution of earnings from unconsolidated affiliates 10,912 6,867 364 1,734Stock match and other non-cash compensation 24,966 14,779 3,214 1,811Excess tax benefit from share based payment (7,225) – – –Write-off of stock issuance costs 3,166 2,100 – –Minimum pension liability adjustments (4,562) 17,492 (26,356) 5,841Interest income on notes from stockholders (754) (2,111) (2,008) (1,623)Other, net (primarily changes in working

capital and deferred income taxes) (22,635) (4,823) (17) 8,974Net Cash provided by Operating Activities 137,463 121,266 46,587 77,574

Cash Flows from Investing ActivitiesAdditions to property and equipment, net of disposals (42,978) (10,999) (30,390) (18,323)Acquisitions of businesses, net of cash acquired (158,742) (53,296) (158,894) (14,467)Other, net 9,800 (7,520) 52,289 (11,538)Net Cash used for Investing Activities (191,920) (71,815) (136,995) (44,328)

Cash Flows from Financing ActivitiesNet proceeds from issuance of common

stock in initial public offering 468,280 – – –Proceeds from borrowings under credit agreements 197,579 342,161 130,000 –Repayments of borrowings under credit

and senior note agreements (287,084) (442,013) (9,106) (24,482)Proceeds from issuance of stock 30,991 124,411 (31,567) (15,050)Other, net (71,603) (761) (5,250) (5,250)Net Cash provided by (used in) financing activities 338,163 23,798 84,077 (44,782)

Effect of Exchange Rate Changes 2,939 269 196 2,318Increase (Decrease) in Cash and Cash Equivalents 286,645 73,518 (6,135) (9,218) Cash and Cash Equivalents at Beginning of Period 127,870 54,352 60,487 69,705Cash and Cash Equivalents at End of Period $ 414,515 $ 127,870 $ 54,352 $ 60,487

Other Cash Flow InformationRetirement of fully depreciated equipment (non-cash) $ 16,676 $ 8,122 $ 11,554 $ 27,012Interest Paid $ 7,751 $ 14,584 $ 8,788 $ 9,192Income Taxes Paid $ 36,345 $ 16,366 $ 20,182 $ 16,142


Board of Directors and Committees

Board of Directors

Richard G. NewmanChairman, AECOM

John M. DionisioPresident and Chief Executive Officer,AECOM

Francis S.Y. BongVice Chairman, AECOM

H. Frederick ChristieRetired President,Southern California Edison Company

James H. FordyceManaging Director,J.H.Whitney Capital Partners LLC

Dr. S. Malcolm Gillis University Professor,Former President, Rice University

Linda GriegoChief Executive Officer,Griego Enterprises, Inc.

Robert J. LoweChairman and Chief Executive Officer,Lowe Enterprises, Inc.

Norman Y. Mineta(appointed June 2007)Vice Chairman, Hill & Knowlton, Inc.and former Secretary of U.S.Department of Transportation and former Secretary of U.S.Department of Commerce.

William G. OuchiSigoloff Professor in CorporateRenewal, Anderson Graduate School of Management, UCLA

William P. RutledgeRetired President and Chief Executive Officer,Allegheny Teledyne, Inc.

RetirementsJohn W. Downer retired from the Boardin December 2006.

Lee D. Stern retired from the Board in September 2007.

Committees

1. Audit CommitteeWilliam P. Rutledge, ChairH. Frederick Christie Linda GriegoNorman Y. MinetaWilliam G. Ouchi

2. Compensation / Organization CommitteeH. Frederick Christie, ChairJames H. Fordyce Linda GriegoRobert J. Lowe William G. Ouchi

3. Nominating / Governance CommitteeDr. S. Malcolm Gillis, ChairLinda GriegoNorman Y. MinetaWilliam G. Ouchi

4. Planning / Finance / InvestmentsCommitteeRobert J. Lowe, ChairFrancis S.Y. Bong James H. FordyceDr. S. Malcolm GillisNorman Y. MinetaWilliam P. Rutledge

CreditsDesign and production, OPX, London, U.K.www.opx.co.ukCopywriting, Iain BanksPrinting, Wheal-Grace, New Jersey, USAand Colne VCS, U.K.

Printed on FSC certified, chlorine free paper with post-consumer recycled content. Printed using100% vegetable based ink.

AECOM555 South Flower StreetSuite 3700Los AngelesCalifornia 90071-2300

T 213.593.8000F 213.593.8730E [email protected]

AECOM (NYSE: ACM) is a global provider of professional technical and managementsupport services to a broad range ofmarkets, including transportation, facilities,environmental and energy. With more than 32,000 employees around the world,AECOM is a leader in all of the key marketsthat it serves.

AECOM provides a blend of global reach,local knowledge, innovation and technicalexcellence in delivering solutions thatenhance and sustain the world's built,natural and social environments.

AECOM serves clients in more than 60countries and had revenue of $4.2 billionduring fiscal year 2007. More information onAECOM and its services can be found atwww.aecom.com.

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AECOM Annual Report 2007

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