Annual Review: Making The Difference

Annual review
2011–2012
making the difference

1 Annual review 2011-2012
Table of contents
Chairman’s statement
Strength in diversity 02
Strength in Strengthening our expertise 04
diversity Looking ahead

The Board
04
05
Performance summary 08
Chief Executive’s report
Reaping the rewards of investment 11

Reaping the Building strength across sectors 12
rewards of Responding to changing markets 13
investment Looking ahead 13
Client delivery
Responding to changing client needs 15

Responding to The evolving client 16
changing client Regional highlights 22
needs
Building capability
Joined up thinking 27
Joined up Developing our people 27
thinking
Systems and tools 28
Continuous innovation 30
Corporate social responsibility
Making a valuable difference 35

Making a valuable Our communities 35
difference
Our workplace 36
Our marketplace 36
Our environment 36
Finance Director’s report
Our results 39
Our Financial results 41
results
Strength in
diversity
Tim Wray, Chairman
Over a decade into the implementation of our strategy to build

capability across borders and services, we are truly seeing the
benefits of diversification. The global economic crisis has affected
clients throughout the world, but our strength across the board
has both protected our company and helped our clients
construct and manage their assets in a way that enhances
their own businesses.
I am delighted to report some outstanding results for 2011-2012,

despite difficult trading conditions. Turnover during the period was
£275m, an increase of 16 percent over 2011’s £236m. Profit before
interest, amortisation, exceptional items and tax was £23.6m, up 26
percent from last year. The adjusted EBITA profit margin was 9.7 percent
(2011: 9.2 percent). Our non-UK regions together achieved outstanding
growth, with revenue up 35 percent and EBITA up 55 percent on the
prior year.
The balance sheet remains strong as does the group’s liquidity and we
ended the year with nil gearing and net assets of £24m (2011: £24m).
Our order book is stronger than a year ago in all regions other than the
UK and there have been several substantial commission wins since the
year end.
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Chairman’s statement 02
Chief Executive’s report 11
Client delivery 15
Building capability 27
Corporate social responsibility 35
Finance Director’s report 39
TURNOVER
£275m
Turnover (£m)
275
245
236
217
212
173
06/07 07/08 08/09 09/10 10/11 11/12
Profit before tax* (£m) 23
21
20
19
17
13
06/07 07/08 08/09 09/10 10/11 11/12
* before exceptional items

The market also recognised our successful year in Turner & Townsend. Initiatives such as our new Global
a range of awards around the world. Our Australian Talent Management Programme are designed to build
offices claimed the award for best workplace for women on the work of the Chairman’s Group, bringing together
in the industry from the Urban Development Institute the most promising staff in our business and helping
of Australia in June. At the Association of Project them gain the insight, skills and networks needed to
Management awards in the UK in October we won become our future leaders.
Project of the Year, Overseas Project of the Year and
Community Project of the Year for Exeter University Similarly, our increasingly active corporate social
Business School, Dublin Airport and Brighouse and responsibility programme helps us pay attention to
Sowerby Bridge Pool and Fitness Centres. our key stakeholders and monitor the contribution
we make to our community, workplace, marketplace
In November an industry panel named us Risk and environment. This year we will again publish
Management Service Provider of the Year and we a corporate social responsibility report to track the
ended the year at Ireland’s 2011 CMG Building & progress we are making against our commitment to
Design Awards, where we claimed the prestigious good corporate citizenship.
Construction Consultant/Project Manager of the Year
award. 2012 began with recognition of our deepening We have maintained stable executive and management
client relationships, as our partnership with Yorkshire boards over the period, reflecting the consistent
Water earned the title of Integrated Supply Chain of implementation of a strategy that is serving us well in
the Year at the Building Awards. the current environment.
Throughout the year our projects continue to be Looking ahead

recognised as outstanding. In the UK Wakefield’s The crisis in the eurozone is the most obvious risk to
Hepworth Gallery won multiple awards from the businesses operating globally. At the time of writing, it
industry, including the Civic Trust Special Award, RIBA seems that things are likely to get worse before they
Regional Building of the Year 2012 and a triple award get better. However, this period of uncertainty is a
with RICS. In Tianjin, China, the Yujiapu Financial prime example of the risk that is best managed by a
District project was named one of the best sites in strategy of diversification. Strength across a range of
the country for quality and safety by the Quality and services, sectors and regions has enabled us to support
Safety Inspection and Administration. The Alte Post clients who wish to work differently, pursue different
building in Hamburg claimed this year’s Special Jury opportunities or explore new territories.
Award at MIPIM.
Our performance to date suggests that Turner &
Strengthening our expertise Townsend is well-positioned to continue its growth as
We remain a business totally reliant on the skills and clients’ needs evolve.
commitment of our people. Having been a part of
Turner & Townsend since 1971, I am conscious of the Tim Wray
enduring culture that makes clients and new recruits
seek us out. This year staff numbers grew to 2,781
through both organic growth and acquisitions. In such a
large and diverse business, we are increasing our focus
on identifying and preserving the culture that binds us
together. The growth of our business gives our people
greater opportunity to work on landmark projects all
over the world, and we know that this draws people to
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Client delivery 15
The Board Corporate social responsibility

35
39
Tim Wray Chairman Vincent Clancy Chief Executive Officer
Tim Wray joined the company in 1971, and in 1982 established Vincent Clancy joined Turner & Townsend in 1989 and was
our first international office in South Africa. Between 1999 and appointed to the Executive Board in 2002, becoming CEO
2011 as Senior Partner and Chairman, Tim was instrumental in 2008. He has primary responsibility for managing our
in driving the international growth of our business. Tim moved continuing rapid growth in global markets and has overseen
into a non-executive role in May last year. the significant recent growth in the company’s turnover outside
the UK.
Tom Harrison Chief Operating Officer Jon White Managing Director, Europe
Tom Harrison joined the company in 1974. He was appointed A Chartered Civil Engineer and Chartered Director with over
to the Executive Board in 1995, became Managing Director 30 years’ experience in construction, Jon joined the company
(International) in 1999, Managing Director (UK) in 2005 and in 1997. He led our UK Project Management team before
Chief Operating Officer in 2008. He also has responsibility for becoming Managing Director (Europe) in 2007, and was
key global sectors such as natural resources and infrastructure. appointed to the Executive Board in May 2010.
Jeremy Lathom-Sharp Finance Director Gordon Horsfield Non-Executive Director
A Chartered Accountant, Jeremy Lathom-Sharp was appointed Former Director of Operations at PricewaterhouseCoopers,
to the Executive Board on joining as Finance Director in Gordon Horsfield served as Executive Chairman of what
March 2000 after five years as Group Financial Controller became Drax Group plc from 2002, and then as
with David Brown Group plc. He has played a key role in the Non-Executive Chairman from 2006 until April 2008. Gordon
transformation of the company’s financial and IT processes was appointed to the Board as Turner & Townsend’s first
and systems. Non-Executive Director in April 2008.
Working together worldwide
Global Client Relationship
Anglo American
HIGHLIGHTS Anglo American is one of the largest mining

companies in the world, with more than 100,000
De Beers (Anglo American’s diamond
interest) is the world’s leading employees and contractors, and operations across
diamond company. It generates the Americas, Africa, Asia, Australia and Europe.
about 35 percent of the global rough As such, it requires trusted partners to deliver
diamond production from operations
in South Africa, Botswana, Namibia consistent commercial assurance and support its
and Canada, and has unrivalled managers to deliver all projects and programmes
diamond distribution, sales and across the globe.
marketing operations.
Our relationship with Anglo American began over three decades ago
Samancor is the world’s largest
in Africa, and today we work together in many different locations.
producer of seaborne manganese
ore, with operations producing a Our recently opened office in Santiago, Chile was opened to support,
combination of ores, alloys and amongst others, the Los Bronces Development Project, a 1,700 worker
metal from sites in Australia and copper and molybdenum mine at 3,500 metres above sea level.
South Africa.
Anglo American is an impressive example of how the scope of our
role has evolved to accommodate our client’s changing requirements
while maintaining focus on supporting the integrity of the business
case through commercial assurance. Services we provide for Anglo
American include benchmarking and analysis, contract drafting and
administration, programme planning and roll out, procurement strategy
development and implementation at both a corporate and project
levels. In addition we provide specific interventions such as contract
negotiations, workshop support and alliance and partnering
strategy support.
7
Turner & Townsend has supported us

in various initiatives across the globe from
its global offices; and has consistently
demonstrated a willingness to adapt to the
changing needs of our business. As we continue
on our global expansion programme, I look
forward to a sustained fruitful relationship with
the Turner & Townsend team.”
Nic Du Toit, Global Head of Projects

Anglo American
For three decades, we have been committed to supporting Anglo

American as it delivers operational excellence through its platinum group
metals, diamonds, nickel, copper, iron ore, metallurgical and thermal
coal and zinc interests around the globe. Our broad yet integrated suite
of services, and our ability to share knowledge gained and delivered
globally from our growing business has ensured we have adapted to their
changing needs, wherever they are in the world.”
Dennis Nolan, Director
Key account manager
Performance in brief
Turnover Over the year our turnover grew 16 percent, doubling our
rate of growth last year.
£275m 16%
growth
Regional For the first time over half of our revenue was generated
outside of the UK.
revenue
54%
OFFICES We have expanded our footprint in each region, opening
seven new offices.
74
CLIENT We have maintained our
SATISFACTION high standard of client care,
achieving an average
8/10
satisfaction rating of
eight out of ten.
STAFF
NUMBERS
2,781
9
Global reach
NUMBER OF
COUNTRIES
32
Turner & Townsend offices at
1 July 2012
Americas UK Europe Africa Middle East Asia Australia

Calgary Aberdeen Amsterdam Cape Town Abu Dhabi Bangalore Adelaide
Edmonton Belfast Atyrau Durban Doha Beijing Brisbane
Houston Birmingham Basel Gaborone Dubai Hanoi Cairns
Lima Bristol Dublin Harare Muscat Ho Chi Minh Canberra
Los Angeles Edinburgh Frankfurt Johannesburg City Gold Coast
Nashville Glasgow Krakow Kampala Kuala Lumpur Melbourne
New York Leeds Madrid Pretoria Mumbai Perth
Ottawa Liverpool Milan New Delhi Sydney
San Francisco London Moscow Seoul Townsville
Santiago Manchester Munich Shanghai
São Paulo Newcastle Paris Singapore
Toronto Nottingham Rome Tianjin
Vancouver Sheffield Vienna Tokyo
Teesside Warsaw
Waterford
Brisbane Airport Corporation
Programme management office
HIGHLIGHTS
Specific benefits to this approach for BAC include:

n giving its executive team visibility of the issues requiring
management action
n identifying and managing key project milestones as well as third
party interfaces
To date annual delivery targets have been met, and BAC is receiving faster,
better quality reporting to help it confirm management decisions.
Brisbane Airport expects passenger numbers to

double by 2029, and is making preparations to meet
the soaring demand. Brisbane Airport Corporation
(BAC) selected Turner & Townsend to implement
a best-in-class programme management office to
drive the delivery of its £194m (AUS$300m) annual
capital spend.
BAC asked us to provide a full range of programme management services

within an integrated team. Its aim is to improve assurance and reporting
to its executive while ensuring the certainty of project outcomes.
Key features of this approach include integration with other project

management processes, such as gateways, risk management, cost
management, and stakeholder management, with standardised controls
and governance principles across the full programme. We provided a
planning service at programme level, identifying the programme-critical
path and key interfaces between individual projects. High-quality reporting
and data management included the interface with sub-contractors
supporting the delivery of the programme; the outcome was a strong
assurance service to identify risk areas for BAC to address or consider.
The programme office has delivered a step change in BAC capability in

monitoring, reporting and analysing the performance of its portfolio of
projects, helping manage and reduce business risk.
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Client delivery 15
Chief Executive’s report Corporate social responsibility

35
39
Reaping the
rewards of
investment
Vincent Clancy, Chief Executive Officer
Looking at our results this year, it is clear that the strategy

we have pursued for over a decade is truly paying dividends.
By the end of the nineties, we could see that our clients’ needs were
changing: they were entering new markets, building global operations,
and undertaking more complex projects. In response, we changed
ourselves, investing in our own global reach and the breadth of expertise
needed to help our clients take a holistic approach to the construction,
management and operation of their built assets. This continued
investment, both in good times and in bad, is consistently delivering
growth both for Turner & Townsend and our clients.
This year’s results are the best proof of the value of the business model
we have developed: despite widely variable economic conditions, we
have seen strong global growth – both revenue and profit are up in
all regions.
Our investment in globalisation has reached a significant milestone:

more than half of our revenue is derived from regions outside the UK,
54 percent this year. This investment has continued apace: we opened
a new office in each of our regions, beginning to formally trade in Brazil
and Peru, and opening in Aberdeen, Bangalore, Edmonton, Frankfurt,
Kampala, Muscat and Townsville.
Chief Executive’s report

Growth through mergers and acquisitions saw us Building strength across three
increase our critical mass in Frankfurt and New York. core sectors
We now have nearly 300 consultants based in the
We have positioned ourselves around three main
US. This growth has been recognised by the market:
segments where we see the market opportunity:
Turner & Townsend entered Engineering News Record
natural resources, property and infrastructure.
league tables for the first time in 2011, at number eight
Each sector now represents close to a third of our
in the total construction management / programme
business, and our increasingly sophisticated knowledge
management fees league. We were also listed at
management systems enable us to bring clients best
number 52 in the top 100 construction management-
practice and specialists from other industries while also
for-fee firms ranking, rising seven places to number
protecting us from cyclical downturns in any particular
45 in 2012.
area. This diversification is now well embedded in
our business – our top 20 clients by revenue are well
Increasing international capability has enabled us to
on the way to being divided equally between these
develop global relationships with some of our largest
market segments.
clients. For instance, with our appointment to its
global enterprise framework agreement, we are now
Results from each area show a remarkable
supporting Shell in the Americas, UK, Europe, the
performance: natural resources grew 66 percent last
Middle East and Asia. Brands such as BMW, Microsoft,
year, while infrastructure grew 34 percent. Our property
Maserati, and Bloomberg have also turned to us in the
business grew marginally, in the toughest environment
past 12 months as our international profile has grown.
for real estate development in decades.
Despite the economic environment, we substantially

outperformed the UK market, growing six percent
over the last financial year. We have continued to
invest in the UK practice, reshaping our business
to align ourselves more closely with client demand,
building skills in areas such as renewable energy and
infrastructure, enabling us to further develop our
relationships with clients such as BAA and Crossrail,
Top 20 clients
and absorbing the downturn in the public sector. Our by revenue
property practice has remained at the leading edge,
and we are proud to be working on some of the
most significant programmes underway in the UK at
the moment, including the regeneration of London
Bridge Quarter, construction of The Shard, and the
redevelopment of 1–5 Grosvenor Place by Grosvenor
and Derwent London.
Natural Property Infrastructure

resources
13
Client delivery 15
Responding to changing markets In an industry that has seen much consolidation, clients
Clients tell us that no-one else in our market is able to tell us they value the independence that we provide
provide the range, quality and depth of independent without sacrificing true global capability. Independence
support. But clients’ needs are not static, and has also proved highly attractive to talented individuals,
we continue to change to address their emerging many of whom we recruit from the industries to which
requirements. In our section on client delivery on page we consult.
15, we set out some of the trends driving us to keep
developing our services and capabilities. Understanding The economic environment remains a challenge,
these client changes is vital in growing our business. however opportunities are there for businesses able to
Revenue from our key client relationships grew by 39 take a sophisticated and innovative approach to their
percent this year – a clear indicator of the benefit in capital assets. Our commitment is to continue to invest
ensuring we understand our clients’ needs and work – in our global footprint, our people, our services, and
together to tailor our services to meet them. the tools and processes that support them – so we can
take advantage of the opportunities we are generating.
An important theme has been the need to join up our
services to solve increasingly complex client issues, This year’s financial results demonstrate that
increasing the value we add and the sorts of problems Turner & Townsend is better placed than ever to help
we are able to tackle. Our section on building capability, clients develop and manage assets that reward their
page 27, outlines some of the major investments we investment. Our ambition remains the same: to be the
have made in our people, processes and approaches to clear market leader, helping clients, large and small,
make these connections and build the capability needed with advice and support that results in real benefits for
to deliver excellence. their organisations.
It is a testament to how far we have come that, despite Vincent Clancy

the economic environment, our involvement in large
programmes continues to increase significantly. Our
challenge is to exploit this opportunity by investing
further in our capability to partner with some of the
world’s finest businesses to help them take a truly
strategic approach to their assets.
Looking ahead
Whilst our strategy remains unchanged, it requires
us to keep changing. For many of our global clients,
the capital programmes that will maximise return on
investment are big, bold and complex. The sort of
help they require is correspondingly multifaceted, and
they are looking to us to continue to invest on many
different fronts. Initiatives such as our Communities of
Practice project will ensure we are giving clients access
to best practice and innovative approaches, wherever
54%
they are found. Investment into our regional support
functions gives our people and the clients they serve
tailored assistance, wherever they are working.
of our revenue was generated

from outside the UK
Syngenta
EAME capital projects
HIGHLIGHTS
n the facility at Monthey is at the forefront of crop protection production

and many crop protection products used around the world start life there
n Monthey produces a variety of active ingredients which make up many of
Syngenta’s largest products
n we provide customised cost management support to the business critical
capital programme at Monthey, encompassing capacity expansion and
new active ingredient introduction projects
Syngenta is a world-leading specialised chemicals company

with a focus on the crop protection and seed markets,
employing 26,000 people across the globe.
Our partnership with them began in 2009 in response to the need for
improved cost control on its capital programme in Monthey, Switzerland, now
the largest of Syngenta’s production facilities worldwide. From this local team,
our relationship has expanded to include a wide range of services across the
EAME region.
The diversity and geographic reach of Syngenta’s business means its Turner & Townsend is a valued
challenges are complex and dynamic. Working as an integral part of partner that has helped to deliver
Syngenta’s project delivery team, we help to streamline commercial our capital programme in Europe
processes, improve governance, enhance the value of reporting platforms since 2009. During that time they
and increase consistency. have brought increased rigour
and control to our cost estimating
We achieved this through our bespoke and integrated service offering, which and cost control processes and
incorporates aspects of project management, cost management, project continue to provide well thought
controls and commercial audit and assurance. through improvements.”
We are managing complexity through a consistent approach to our service, Paul Brown, Global Head of Engineering
Syngenta
the retention of key expertise, a commitment to involve Syngenta in the
development of tailored solutions, and the provision of a responsive,
co-located service.
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Client delivery 15
Client delivery Corporate social responsibility

35
39
Responding to
changing client
needs
Nearly four years since the start of the global credit crisis, markets
remain stressed and businesses continue to face unprecedented
market pressures.
In response, we see clients rethinking how and where they invest, how
they organise themselves, and how they maximise the return on their
investments. We have worked hard to redefine how we deliver our services
to help clients achieve this transformation.
Building this capability has transformed our ability to work with some of the
world’s largest businesses. Between them our 20 largest clients by revenue
employ over a million people in 153 countries – presenting vast opportunity
for our business to help them with theirs. Our one business approach
provides a practical platform to deliver global best practice to clients
anywhere in the world, and we continue to adapt as clients’ needs evolve.
“It has been another successful year for our team in Ireland. At the APM Awards
the Dublin Airport team claimed Overseas Project of the Year and for the second
year running we were named Construction Consultant of the Year at the CMG
Awards. These accolades are great recognition of the hard work and commitment
to clients that our staff continue to demonstrate.”
Mark Kelly, Managing Director

Healy Kelly Turner & Townsend
Client delivery
The evolving client n The emerging markets
There is undoubtedly a trend towards larger, bolder and The search for growth is continuing to take clients
more complex programmes, often across territories. into new markets. Programmes are increasingly
Organisations are under greater pressure to maximise multi-territory, and investments in emerging
return on investment in an environment of increasing markets commonplace. Clients are looking for
competition, regulatory requirements, and limited on-the-ground expertise, hence our continued
access to capital. Such conditions have generated investment in our emerging market capability.
change in a number of ways including: We are expanding our teams across Asia, South
America, wider Africa and Eastern Europe. Over the
n The intelligent client past year our turnover in emerging markets grew by
With headcount under scrutiny, clients are more than 90 percent.
fundamentally reassessing how they organise
themselves to deliver better value from their In natural resources, clients are developing assets
programmes. Many are developing leaner in-house in evermore remote locations. Our ability to provide
teams to focus on the asset management cycle support across many geographies is vital. Our
and business case, while outsourcing more of involvement in liquefied natural gas in Western
the delivery to partners. Our consulting teams Australia, for instance, requires us to provide a
have helped a number of organisations develop seamless service across Perth, Paris, Houston,
new operating models to achieve these goals. South Korea and Singapore. This global capacity is
Intelligent clients want to develop partnerships becoming an important differentiator for us.
with organisations that have deep programme
capabilities, flexible resources and the ability to
deliver on a truly global basis. Our success in
growing our global accounts over the past 12
months reflects increasing market recognition
of our unique ability to achieve this.
Turnover in emerging markets

grew by more than
“I see fundamental changes taking place in how clients set up and deliver their
programmes. I work with major clients across the world and see strong themes
in those that are achieving success: they have a real desire to change, are bold
90%
in leading that change, and are willing to learn from others. It is clear to me that
those that embrace this approach will make the greatest progress.”
Neil Bullen, Managing Director

Head of Major Programmes
17
Rolls-Royce
Seletar campus, Singapore
HIGHLIGHTS
The SATU will assemble and test Trent 900 and Trent 1000 engines which are used to power the Airbus A380 and
Boeing 787 Dreamliner respectively – two of the most modern and advanced passenger aircraft in operation. At
full capacity it will produce 250 engines per year.
Each facility has individually been awarded Singapore’s environmental Greenmark Platinum status. Platinum
was awarded due to high points achieved through construction, mechanical and electrical innovation and ‘Green
Corners’ an initiative to educate staff and visitors on environmental issues.
Around 4,000 people a year will be trained at the regional training centre, with courses ranging from IT to
management and leadership to technical skills – all helping Rolls-Royce to develop the talent pool it requires, while
promoting a culture of engineering excellence in Asia.
Rolls-Royce’s £350m Seletar campus in Singapore is at the

cutting edge of advanced aerospace manufacturing. Opened
in February by the Prime Minister at the Seletar Aerospace
Park, the facility represents a significant investment in the
organisation’s growth in Asia.
The development comprises an engine assembly and test facility, collectively known
as Seletar Assembly Test Unit (SATU), a wide chord fan blade manufacturing facility
(Achord), and a regional corporate headquarters which accommodates a regional
training centre, advanced technology centre, office space, canteen and green roof
space. The 15 hectare campus was delivered from green field by three separate
main contractors, through a design and build approach.
Turner & Townsend was appointed in June 2009 to provide both project
management and cost management services for the headquarters building,
SATU and the respective campus infrastructure. Our role later expanded to
provide information, communications and technology project management
services, facilities and transition management services, and equipment installation
management services. A key element was to provide cross-site supplier
coordination by working with the various project teams to harmonise the look
and feel across the campus and to simplify the ongoing maintenance of each
facility as a whole, with common vendors and spares holding for all facilities.
Client delivery
n The programme approach Natural resources saw the most dramatic growth of
Clients continue to seek to transform themselves, by the year, up 66 percent. Much of this increase came in
bundling projects together and focusing on leaner Australia, where we are working with major industry
delivery and economies of scale, clients are looking players – including Chevron, Rio Tinto, BHP Billiton and
at more sophisticated delivery approaches. The Xstrata. We also saw significant growth in the Americas,
value and complexity of major programmes are also with new offices in Peru and Brazil, and an increasingly
increasing. We are currently working on more than strong contribution from offices throughout the region.
80 projects valued at over £1bn, a clear indication
of the direction of our business and our clients’ shift Our property business also grew one percent
towards major capital initiatives. To deliver this, we globally, despite continuing difficulties for real estate
have invested heavily in linking our capability across development. As well as working on some of the
our seven regions to provide real global insight into UK’s most high-profile projects, including The Shard
how we deliver projects. at London Bridge Quarter, we received a new global
appointment to help Barclays manage its real estate
n The importance of partnerships portfolio, worked with Australian retail giant Coles
Clients are looking for more from their partners Group, and helped Siemens lead the way with a
and we have focused on developing strong client new headquarters in Moscow, Russia’s first LEED-
relationships. Revenues from the largest clients in accredited building.
our key account programme grew 39 percent last
year, evidence that the investments we are making We are also making significant progress towards our
to develop bespoke solutions for these accounts are goal of providing a full suite of services where clients
paying dividends. Relationships with many of our require them. Commissions, such as Brisbane Airport
largest clients – including Anglo American, BAA, Corporation, and Scottish Water’s ‘Frontier’ efficiency
Barclays, BP, Chevron, Nissan, Shell and Siemens programme, are using our expertise across programme
– are each over a decade old, reflecting our ability management, consultancy, operations and delivery to
to continuously prove our worth and adapt to their help clients achieve their objectives.
changing needs.
In shaping ourselves to meet these needs, we have

seen a step change in the scale and complexity
of our commissions across our entire business. In
infrastructure, which grew 34 percent last year, we
are now working on some of the world’s landmark
projects, from Qatar Rail’s construction of an entire rail
network, to major airport appointments in the Middle
East and Australia.
We maintained a client
satisfaction score of
8/10
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Client delivery 15
This emerging role for our business has come from a

better understanding of the value that we add for our
clients as they go through major change. As outlined
in the next section on building capability, page 27, we
have invested in our ability to anticipate and meet our
clients’ needs, helping them lead their markets through
innovation and carefully managed change.
We are working on more than
80
projects valued at over £1bn
For the last 11 years I have been working with Nissan and Infiniti here
in the US. During this time we have expanded our role to cover dealer
facility branding in 157 countries. Most recently we completed a major
project in San Francisco with Nissan North America and Roger Penske.
For this project we had to bring together our understanding of dealer
facility operations, the corporate brand image and the unique construction
aspects of a nearly 100 year old building. Success for me was that we
kept together a strong team that worked flexibly to meet all stakeholder
needs; ultimately I believe all parties were happy with the end result.”
Matthew Cryer, Director
Key account manager
Global Client Relationship
Siemens Real Estate
Photo courtesy ABD Architects
HIGHLIGHTS Siemens Real Estate (SRE), one of the leading

corporate real estate companies, is responsible for
Siemens Real Estate HQ, Munich: fit out
of Siemens Real Estate headquarters on Siemens’ entire real estate related activities. Its role
time and on budget, as well as compliance is to manage Siemens’ £3.6bn portfolio of real estate
with monument protection requirements
associated with its historic location. assets spread over 2,500 locations worldwide.
Siemens HQ, Moscow: fit out of the first
Our relationship began in 1996 when we provided project and cost
LEED-certified office in Russia, bringing
together 1,300 staff from four locations. management services on a new semi-conductor facility in the UK.
Achieving a Gold level LEED certification, Since then we have worked on more than 100 Siemens projects,
Siemens estimates that the office now across Asia, Europe and Africa, supplying services as varied as project
uses 36 percent less water and 46 and cost management, LEED consultancy, project controls, feasibility
percent less energy.
studies and masterplanning, conceptual and interior design, value
Siemens City, Vienna: as part of an engineering, change management, due diligence etc. Significant
integrated team we helped deliver the ongoing programmes have included a decade-long roll-out of new
new Austrian HQ and won the PMA project
flexible office spaces, focused on improving work places in accordance
excellence award for outstanding project
management and performance. with Siemens objectives and structures.
Siemens first wind turbine blade

A core driver for SRE has been its commitment to sustainability.
manufacturing facility, China: we helped
to deliver the 177,000m2 plant which is With innovative concepts such as the Green Building Initiative, SRE
capable of an annual production of 600 aims to reduce energy and water consumption at Siemens sites
wind turbine blades two months ahead by 20 percent. Much of our focus has been on helping SRE deliver
of schedule. highly eco-efficient premises for Siemens’ staff, customers and
Siemens Urban Sustainability Centre communities and this year we are helping to deliver Siemens ‘The
‘The Crystal’, London: in the heart of Crystal’ building, London’s newest landmark promoting education
London’s Docklands, the centre is an and knowledge share on urban sustainability.
iconic building promoting education
and learning in science, engineering,
technology and sustainability.
21
Turner & Townsend was a valued partner

in the delivery of Siemens City, Vienna,
both for its professional contribution and for
the personal commitment of its people. Its
flexibility and social competence helped to
create a single team with our internal SRE
resources over the five year lifespan of this
highly successful project.”
Siemens Real Estate,

Siemens City, Vienna, Austria
Turner & Townsend has developed a long standing relationship with

Siemens Real Estate (SRE) and its global business since 1995. Our
global reach has enabled us to support SRE in its creation of inspirational
working environments, promoting sustainable working cultures in Moscow,
Beijing, London and Shanghai. As a strategic partner our innovation,
knowledge and experience creates sustainable value and excellent
business results whilst remaining committed to ethical and
responsible actions.”
Harry Hayward, Director

Global Key Account Manager
Regional highlights
“The African strategy

to diversify both from a
“The region is coming of “Success in Europe has been geographic and service
age with support from our “We have increased our achieved by building stronger perspective has seen
existing clients and the revenue and profits through and broader relationships significant growth. From
development of relationships a clear strategy to extend our with our existing clients, being predominantly Southern
with new organisations. I am capability into new services which has resulted in Africa focused, we are now
delighted with our strong and and sectors, and develop an increasing number of supporting many of our
sustainable performance intelligent solutions to serve framework appointments and clients across the continent,
this year.” our diverse client base.” repeat commissions.” with projects in 14 countries.”
Bruce McAra Steve McGuckin Jon White Ian Donaldson

Managing Director, Americas Managing Director, UK Managing Director, Europe Managing Director, Africa
Americas UK Europe Africa
Revenue £36.7m Revenue £113.5m Revenue £24.5m Revenue £16.7m

Profit before tax £4.1m Profit before tax £11.9m Profit before tax £1.0m Profit before tax £2.2m
Staff 353 Staff 1,368 Staff 235 Staff 224
This year has seen significant Key wins include Key project completions this The natural resources and
development across the Edinburgh Tram and the year have been the Riverside infrastructure markets
Americas, expanding in decommissioning of ten office development for NCPOC provided the backbone of
Canada, Peru and Brazil, Magnox nuclear power in Kazakhstan and Group M our success across Africa
and merging with Ferzan stations in the UK. Our offices in Moscow for WPP. this year. Continued work
Robbins & Associates in the project management of The Last year’s investment in with Transnet and Eskom
US. We won new property Shard has helped us win Poland continues to pay projects, combined with a
commissions for Chevron further projects with London’s dividends as we increase our number of frameworks with
Building and Real Estate top property developers work for Tesco and support other key clients, has seen
Services and Continuum including Grosvenor. the delivery of two new our capability grow. The
Health Partners. In natural shopping centres for Helical new Chevron head office in
resources, we are working We are supporting the London Poland. Our headquarters Cape Town, Nile Breweries in
with BP, Shell, Anglo 2012 Olympic Games and project for Siemens was the Uganda and National Treasury
American and BHP Billiton, Paralympics Games, working first project to achieve a LEED in Durban were significant
and we have secured global for the Olympic Delivery accreditation in Moscow and projects for the region, and
agreements with two major Authority (statutory delivery our Irish team was awarded further success with the
hi-tech companies and a body), London Organising Construction Consultant of University of Johannesburg
group of financial institutions. Committee of the Olympic the Year for the second year and Unisa, combined with
Games and Paralympic Games in succession. new wins at Nelson Mandela
Ltd (promoting and staging Metropolitan University and
the London 2012 Games) The Wangari Mathai Institute,
and the London Legacy saw us recognised as a
Development Corporation market leader in higher
(long-term managers of the education projects.
Olympic Park).
23
Client delivery 15
“This year saw strong

“A focus on the region’s performance in the natural
demand for new resources sector buoyed by
infrastructure, particularly “Our business continues to our new contract services
airports and rail, has build on our work with global team. Our property and
rewarded us with revenue clients capitalising on foreign infrastructure revenue also
growth and the opportunity investment. We experienced grew significantly despite
to work on some of the most strong growth across the relatively subdued markets
exciting projects in region including newer - demonstrating our growing
the world.” markets such as India and reputation and strong
South Korea.” national capability.”
Mike Collings
Managing Director, Duncan Stone David Todd
Middle East Managing Director, Asia Managing Director, Australia
Middle East AsIA Australia
Revenue £8.1m Revenue £16.6m Revenue £28.2m

Profit before tax £0.4m Profit before tax £1.1m Profit before tax £2.8m
Staff 87 Staff 291 Staff 223
Key wins in the region We continue to build our Our successes in Australia
started in the Sultanate of relationships with corporate this year include significant
Oman, where we recently clients in a number of work in the natural resources
opened a new office and key sectors, including sector with clients including
are providing project telecommunications and Chevron, Rio Tinto, BHP
management office services technology where we are Billiton and Xstrata and in
to Ultra Electronics Ithra working with Lenovo, the property sector with food
who are delivering specialist Microsoft and Bloomberg. retailer Coles Group. We
systems worth US$250m In particular, we increased have also secured exciting
at Muscat International our data centre work and new commissions in the
and Salalah Airports. We continued to develop our infrastructure sector on
are also working as part of work in the oil and gas, programmes such as Brisbane
the strategic programme retail and industrial sectors. Airport development, North
management team for the We expanded in India with West Rail Link and the
multimillion-dollar Qatar Rail the opening of a new office Sydney Light Rail Strategic
programme. At Dubai Airport in Bangalore to support a Plan. We opened our new
we are providing full cost number of clients, including Townsville office to further
and commercial services for Shell and a major support mining and metals
the new Concourse 4. investment bank. clients in the region.
global client relationship
Tesco
HIGHLIGHTS Retail giant Tesco asked for our support in 2002

and since then we have provided multidisciplinary
We supported the delivery of their first
zero-carbon store in Ramsey which
consultancy on projects across the globe, from
trialled a number of environmental Poland to Malaysia, China, South Korea, India
initiatives that are now standard on its and Thailand.
development programme.
Tesco is a global brand, and its challenge is to deliver a common global
In China alone we have supported
standard and achieve value for money worldwide. We are helping
Tesco on over 1.1 million metres 2 of
development projects and delivered Tesco achieve this through a range of services including front-end
cost reductions of up to management consultancy, cost and project management, model cost
30 percent. generation, procurement support and commercial assurance.
In the UK our mechanical and electrical Our innovative approach to commercial assurance, with a specific focus
services commercial assurance has on mechanical and electrical services, coupled with a willingness to work
delivered a return of £10 for every £1 on an incentivised fee arrangement, sets us apart from our competitors.
spent on our services.
In the past two years we have been helping Tesco reduce capital
expenditure and get the best value from the marketplace through a
variety of sustainable procurement initiatives. These involve working
closely with Tesco procurement, engineering and property teams to
define Tesco’s requirements and then challenging the external supply
chain to develop the most appropriate value-for-money solution.
We developed a full suite of standard costs for all new store and
extension formats which have been rolled out across the UK. These
form the basis of all early viability cost plans, resulting in efficiency
gains, confidence in early-stage costs and a reduction in fees for
abortive schemes.
25
Turner & Townsend provides services for Tesco in

the UK and a number of our overseas markets. This
ranges from strategic advice through to the secondment
of quantity surveying staff. As a key partner to Tesco,
they continue to demonstrate the breadth and style that
makes them the natural choice when support is sought.
The ‘fit’ with our corporate approach is clear, and I am
confident that Tesco and Turner & Townsend can look
forward to a long and mutually rewarding
future together.”
Guy Digby, Group Property Manager

Tesco
Our relationship with Tesco has matured over the past ten years into
a multi-region, multi-discipline partnership. Our continued focus is to
support Tesco in leveraging group skill and scale globally to deliver
‘simpler, better, cheaper’ development programmes. We look forward to
supporting Tesco as they expand into new markets and we will continue
to bring innovation and industry best practice to our global relationship.”
Peter Cummings, Director
Key account manager
Yorkshire Water
Asset Management Plan 5
HIGHLIGHTS
CASE STUDY SINGLE

Yorkshire Water’s Asset Delivery Unit has achieved:
n 99.2 percent forecast accuracy of expenditure with targets met for years
one and two
over 4.6 million hours worked Masdar

n an industry-leading health and safety accident frequency rate of 0.13 for
n £75.9m capital efficiencies (OFWAT accepted cost savings) to date: £59m

efficiencies through innovative procurement and £3m cost saving through
innovative risk-based contract management
Yorkshire Water is the ninth largest water utility company

in the world, supplying 1.24 billion litres of drinking water
each day, enough water to give everyone on the planet
a glass.
Over the past decade we have helped them achieve significant efficiencies,
and supported them in becoming a frontier performing water company. Our
partnership was recognised nationally at the 2012 Building Awards in the UK,
where Yorkshire Water’s Asset Delivery Unit was named Integrated Supply
Chain of the Year.
Turner & Townsend is Yorkshire Water’s sole commercial consultant providing

integrated programme, procurement and commercial management support.
We have jointly developed an integrated delivery mechanism, which has
included the launch of an innovative and award-winning risk-based approach
to contract, commercial and assurance management. This has resulted in
Turner & Townsend provided us
considerable cost savings and risk reduction while driving improvement and
with a world class procurement
outperformance – every £1 spent with us on fees results in a saving of four
process to contract with best
times as much on capital expenditure for Yorkshire Water.
in class service providers that
can deliver excellent assets and
customer experience.”
Mike Grayson,
Assurance & Consultant Manager
Yorkshire Water
27
Client delivery 15
Building capability Corporate social responsibility

35
39
Joined up
thinking
Our clients are growing and changing, expanding into new

markets, undertaking more complex projects, and taking a more
strategic approach to their capital assets. Helping them change
has required us to change as well, and we have been investing
heavily to become an organisation that can make the difference.
As one of the largest independent firms in our field, we have developed

a management structure that provides a strong platform for growth. By
managing ourselves as a single global business, we retain the control
needed to ensure a consistent standard of service worldwide, while
building up our regional capabilities to tailor our services for local markets.
Developing our people

Continued investment has seen our business grow to almost 2,800
people in 32 countries, bringing new challenges to ensure that clients
receive a consistently high standard of support, wherever they are. Our
people strategy has been developed to focus in two areas: our ability
to attract and mobilise the best people, and the programmes we have
in place to develop the talents of our staff. Both areas of attention are
paying dividends: we had our largest-ever graduate intake this year,
along with a record number of internal promotions.
“Being part of the Chairman’s Group gives me a wider view of the business - the
services we offer, the skill sets we have, the opportunities that are there - and
makes me realise what brilliant colleagues I have. I get a sneak peak of senior
management’s challenges and have an opportunity to contribute to
their plans.”
Astrid Boumans-Bakker, Associate Director

Chairman’s Group chair
Building capability
Our growth needs a constant supply of talented Systems and tools
people, and our recruitment activities are evolving to Turner & Townsend relies on the knowledge of its 2,781
help us find the best. A recent pilot in Australia used a people worldwide to give clients access to best practice
new recruitment platform that interfaces with multiple across its vast range of projects and activities. Clients
job boards and interacts with social media sites such tell us that they particularly value our ability to identify
as Facebook and LinkedIn. The technology’s key relevant best practice from one sector, and use that
strength has been its benefit to clients: increasing our insight to create the best approach for a particular
ability to understand the skills available to support a commission. Joining up our expertise has therefore
specific commission and to get the best person quickly been a core focus in developing the systems and tools
onto a client’s project. The system is currently being that support our people.
rolled out to other regions.
An increasing number of clients are asking us for
Initiatives focused on developing our people include the advice during the early phases of their major projects
launch of our Global Talent Management Programme, and programmes, particularly in establishing the rules
to identify our leaders of tomorrow and help them and tools under which the project or programme will
build their skills across the full range of capabilities operate. We are working on many of the world’s largest
needed to operate internationally at a high level. programmes and in the past year have supported
Elements of the two-year programme include individual such diverse clients as BHP Billiton’s Olympic Dam
assessments and development planning, business programme in Australia, AngloGold Ashanti’s portfolio
simulation exercises and ongoing internal mentoring to of projects in Continental Africa and Europe’s largest
help participants achieve their goals. Our network for infrastructure programme for Crossrail. We have
less experienced employees – Your Professional Future brought streamlined best practice approaches to
– is being expanded globally, while the Chairman’s the establishment of the management systems as
Group now includes members from every region as well as specifying and implementing the supporting
it considers innovative ways to respond to changing IT applications and infrastructure. We are providing
market conditions. bespoke reporting and cost management systems
for Lusail Real Estate Development Company in the
Middle East and a large-scale residential programme
in St Petersburg. In the UK we are developing a
bespoke estimating and benchmarking system for the
Environment Agency and implementing a class-leading
estimating capability on Crossrail with our delivery
team partners.
“I believe the creation of our Communities of Practice has led to a step change in
our service offering. Not only does it bring together leading experts from around
the globe, it also connects us to share thought leadership and best practice from
a variety of sectors. On a personal level I am excited about leading and learning
from the excellent staff we have here at Turner & Townsend.”
Aileen Jamieson, Director

Benchmarking Community of Practice Leader
29
Client delivery 15
To enhance our client support, we are investing in the Such a global approach recognises that leading
development of an integrated systems portal, bringing expertise doesn’t emanate from a single source – we
together best practice from around the world under a are seeing the Middle East emerging as a centre of
single model, which drives the delivery of successful excellence for air, for instance, while Australia and the
projects and programmes. This portal will bring the UK are currently leading the world in rail developments.
systems knowledge of our experts to the fingertips of Our challenge has been to help our clients so that they
all of our people, helping them identify the right person benefit from leading-edge approaches, wherever they
to support a client quickly and easily. are established.
We are also developing new tools to support our Our global reach also presents challenges for IT
projects, including our portfolio management tool, systems, which we are developing to ensure that
which will provide real-time KPI data at project, our technology is accessible from any location. We
portfolio and programme level. Clients will be able to face increasing demand for instant communication to
mix and match data to suit their needs, giving them the support remote teams, as well as collaboration with
power to accurately manage the flow of information on client teams. In response, our IT systems are being
their projects and quickly access the information they web-enabled and standardised, and we have also
need to make critical project decisions. adopted VoIP and instant messaging technologies.
These communication changes, as well as enhanced
This focus on information management has been support for smart phones within our infrastructure, are
matched by investment in technology to provide our improving our response times and efficiency.
people with the tools to collaborate more effectively.
Our Communities of Practice initiative was launched
in the second half of the year to provide a forum
for people from around the world to easily link up
to share problems, ideas and knowledge minimising
the time required to respond to client problems and
suggest viable solutions, and improving the quality
of our outputs and deliverables. For example, we
have been able to develop our approach to Building
Information Management, identify the key enablers and
demonstrate how we can support our clients to deliver
the associated benefits to their businesses.
“The cross-border nature of the Global Talent Programme

has introduced me to the challenges and opportunities of
truly global working. I have been exposed to other parts of
our business and collaborated with like-minded individuals.
The investment that Turner & Townsend has made through
this initiative will ensure our most promising people are
equipped to reach their full potential and deliver the best
service to clients.”
Raymond Fong, Senior Project Manager

Global Talent Programme
Building capability
We have a well-established risk management process Continuous innovation
that we continually assess to reduce business risk and Our clients consistently look to us for new ideas, and
set the service levels expected. Our online Commission our research and innovation team is charged with
Execution Planning system also becomes operational driving this agenda within our business. They focus
this summer, which will link our business development, on building an innovation culture worldwide, ensuring
financial and risk management systems, giving greater that ideas from one project are shared globally, they
clarity on project performance. respond to the needs of our clients, and generate
successful solutions. This year saw the creation of a
Our company structure is designed to facilitate major programme innovation framework and global
knowledge sharing. This year we brought together commercial performance study, both providing
our oil, gas, mining and metals expertise under one opportunities for our clients to benchmark themselves
natural resources management team to capitalise and unlock ideas.
on the expertise these sectors share in delivering
massive, complex projects, often in challenging We have a number of global innovation projects being
locations. Similarly, we have brought together our trialled, building on insight from projects including
global transport specialists to leverage the knowledge Chevron Jack and St Malo, The Shard at London Bridge
gained from working on some of the world’s landmark Quarter, Crossrail and the Dublin Metro. Through
projects. For example, airport experience gained at intelligent and focused investment in research and
Heathrow’s Terminal 5 and South Africa’s King Shaka innovation, we will be able to adapt to changing
International Airport has seen us appointed on several client requirements.
airport projects, including project management office
services to Brisbane Airport and Ultra Electronics Our strategy for the year ahead remains the same:
Ithra in the development of Muscat International to work closely with our clients to understand their
and Salalah Airports in the Sultanate of Oman. The business, challenges and needs; invest in our people,
expansion of Dubai International airport and the airfield our systems and our tools to ensure our clients’
infrastructure projects at Gatwick and Heathrow have programmes and portfolios help them reach their
also led to our appointment as project managers for the strategic objectives.
runway improvement project at Ottawa’s MacDonald-
Cartier International Airport in Canada.
“It’s great to be part of the research and innovation committee – we are at

the forefront of innovation across our business. To me, this means sharing
and raising awareness, driving research, inspiring ideas and creativity
and ensuring our clients benefit from our insight. Seeing such talent and
ingenuity in our staff and some of the simple, but effective ideas that
come from them is truly inspirational.”
Chimwemwe Chalemera, Associate Director

R&I Committee
31
Client delivery 15
Staff numbers for five years at year end
2,781
2,409
2,338 2,342
2,182
7
new locations bring our global
network to 74 offices in
32 countries
07/08 08/09 09/10 10/11 11/12
“This year we have introduced the Recruit Advantage system, which provides
an interactive portal to locate the skills and services needed within our
business. Clients are already benefiting from our increased ability to quickly
find the right people for their commission – and new recruits are being
attracted by our global opportunities.”
Dave Rokesky, Director

Human Resources
global client relationship
Shell
HIGHLIGHTS In 1993, Shell in Norway asked Turner & Townsend

to support them in preparing a bill of quantities
In Calgary, Houston and Rio de
Janeiro we have supported the Albian
for the Draugen Field Development based in the
Sands, BC-10, Motiva Crude Expansion Norwegian sector of the North Sea. In 2010 we won
and Quest project. a four year Enterprise Framework Agreement (EFA)
to deliver project and contract services around
Our work in Rijswijk in the Netherlands
and Bangalore in India has been on the the world.
early development of a variety of future
global projects, including Majnoon and By putting in place a global approach, enabled through seven Turner
Iraq South Gas. & Townsend regional hubs, we have tailored our services to Shell’s
regional requirements, while maintaining consistency and standards.
In Aberdeen we support various
North Sea projects including Brent Turner & Townsend provides Shell with local professionals from our
Decommissioning, FRAM and Penguins. talent pool to help achieve project and business goals and assist in the
capture of internal knowledge.
Our ability to provide global solutions
has been deployed on the Prelude
By focusing on the expectations of the agreement, we provide
FLNG project where we currently work
in Paris and Geoje Island, and South professional solutions to help to address issues that projects and
Korea. Other service delivery locations programmes may face over their full life cycle.
include Brisbane, Dubai, Kuala Lumpur,
Singapore and Stavanger.
33
Since the start of the EFA we have been appointed

on over 120 scopes and services involving more than
100 project services, contracts services and information
management professionals in over 16 countries.”
Natural resources revenue grew
66%
Working with Shell has allowed us to deploy our best professionals to be

part of something compelling. They have an opportunity to work with
an industry leader and to be in an environment that gives them the
opportunity to develop. From Turner & Townsend’s perspective, working
with Shell supports all of this and more.”
Chris Stops, Director
Key account manager
Masdar Clean Energy
HIGHLIGHTS
n Abu Dhabi intends to increase the non-oil share of the economy from
40 percent to more than 60 percent by 2030
n UAE vision of making Masdar a preeminent source for knowledge and
development of renewable energy
n Masdar Clean Energy key projects include:
– London Array – world’s largest offshore wind farm
– Shams
One CSP plant – among the largest parabolic trough power
stations in the world and the first of its kind in the Middle East
–N oor One photovoltaic project, one of the largest in the world
– Torresol, a developer of thermosolar power plants
Abu Dhabi has set itself the challenge of generating seven

percent of its energy needs from renewable sources by
2030. Masdar Clean Energy is an investor, developer and
operator of carbon capture and storage, and renewable
power projects using concentrated solar power, Utility-scale renewable energy
photovoltaic and wind energy technologies. It has a rapidly programmes are inherently
complex, from the diverse
expanding portfolio of projects both within the United Arab
stakeholder network to the
Emirates and on a global basis. innovative technologies employed.
Turner & Townsend has provided
Turner & Townsend has been commissioned to provide project controls and
high-performing resources seconded
project management experts seconded directly into Masdar’s project team.
into our project management teams
Our role is to develop and implement the processes and procedures required
delivering our global portfolio. It
for the successful management of the overall project portfolio. Integrated into
has been a pleasure working with
the Masdar team, our resources provide the expertise required to deliver their
the Turner & Townsend team who
ambitious development plans.
have shown real commitment to
Masdar and our projects. With
The Masdar Group has significant growth targets, to help its business
their collaborative and engaging
units prepare for these initiatives we undertook organisational reviews
approach, these individuals have
across Masdar Clean Energy and Masdar City, reviewing resource and
added real value to our business.”
operating models, the technical competencies required and job descriptions.
Recognising the needs of a highly innovative industry like renewable energy, Ron Heyselaar,
we have helped Masdar identify the human, material and capital resources Head of Business and Project Development
needed to deliver its ambitious plans. Masdar Clean Energy
35
Client delivery 15
Corporate social responsibility Corporate social responsibility

35
39
Making a valuable
difference
Our corporate social responsibility (CSR) programme is gaining

momentum and becoming an integral part of our business.
Our areas of focus remain the same:

n our communities: the difference we make to the places in which
we work
n our workplace: our ability to help our people reach their potential
n our marketplace: the commitment we have to honest business
practices and our clients
n our environment: reducing our impact on the environment
Our communities
Our people continued to donate time, energy and money to their
communities, and our CSR report details projects from South Africa
to New York to Kazakhstan where we are making a difference. We
support these efforts through initiatives such as the Turner & Townsend
Charitable Fund, which allows employees to apply for a donation to
help them reach a fundraising goal. We also continue to invite every
employee to take an annual paid day to volunteer for a worthy cause,
which was well taken up worldwide.
We will continue to increase awareness and participation in volunteering

days, increase our pro bono services, and record and increase the
amount of funds our people are able to raise. We also plan to enter more
partnerships with our clients to support the communities in which we
work together.
“The creation of my role demonstrates how our commitment to CSR has

grown. It is my job to look after our endeavours to understand and engage
with communities, help clients and suppliers make sustainable choices, put our
people and employees first and reduce our impact on the environment.”
Tess Lenk, Global CSR Coordinator

Corporate social responsibility

Our workplace Our environment
Our people initiatives play a key role in attracting the Last year we reported on the pilot of our Sustainable
best people and helping them develop to meet the Operations Scheme, which has now been trialled
needs of our clients and our business. A number of in Australia, South Africa and the UK. The scheme
these are reviewed in the building capability section on collects data on waste and recycling rates, as well as
page 27, where we discuss the steps taken to shape our consumption of electricity, gas and water. The visibility
organisation in response to changing client requirements. of this information has already made a difference – the
Brisbane office, for example, has reduced electricity
The overall strategy retains its focus on increasing consumption by 25 percent since beginning to collect
employee engagement and providing the development and report the data.
opportunities needed to help retain the people our
clients want access to. New initiatives such as the In 2012 we will begin to roll out the scheme globally,
Global Talent Programme, identifying and developing using a new Environmental Database System that
our future leaders, or the Your Professional Future, a will also consider business travel. Our UK, Australian,
network to bring together less experienced employees, Singapore and South African operations have all
are helping to ensure that Turner & Townsend is an been certified to the ISO 14001 standard for their
employer people want to join and stay with because of Environmental Management System.
the opportunities we provide to grow.
Our targets include reducing water use, carbon
Our marketplace emissions and waste, while increasing recycling rates,
and awareness of environmental issues among our
The strongest indicator of our commitment to the
people and clients. Our own expertise in sustainability is
marketplace remains our client satisfaction results,
growing – we now have a number of renewable energy
which for the past three years have remained steady
specialists, and are working with clients on leading-edge
at 8 out of 10. Some 40 percent of clients surveyed
sustainable projects.
are already ambassadors for the firm – a positive
proportion that we are focused on increasing.
This is the second year in which we have published a
CSR report, tracking in more detail the progress we
Awards are another way in which we can measure our
have made against our goals. With a full-time CSR
reputation in the marketplace, and this year we saw
coordinator now on board, we are much better able to
recognition across the breadth of our services. From
understand the steps we are taking and the wide range
the Building Awards Integrated Supply Chain of the
of CSR activity underway around the firm. Looking
Year award for our partnership with Yorkshire Water, to
forward we expect to see a growing profile for CSR inside
the crop of 2011 Association for Project Management
our business, an increasingly coordinated approach,
awards for project, community project and overseas
higher levels of activity and genuine recognition of our
project of the year, and 2011 saw the businesses’ first
obligations as a good corporate citizen.
appearance in the US’s Engineering News Record league
tables, we are being recognised for strength across our
portfolio of consultancy, operations and delivery.
We remain committed to the highest ethical

standards, and over the last year we have been
working with our project supply chain so they
understand and share this commitment.
37 37
The City of Edinburgh Council
Edinburgh Tram Network
HIGHLIGHTS
The team is maintaining a well-controlled and managed project and has achieved
a number of significant improvements, including:
n the introduction of an overarching planning and reporting capability providing
up to date accurate information on which to base decision making
n the identification of the true project risk profile with the implementation of
effective risk mitigation actions
n hands-on construction management of enabling works packages to minimise
delay and disruption to the project overall
n Implementation of the client’s cost and programme savings goals
Almost 60 years after it was last seen in the city, the tram
is returning to Edinburgh. The City of Edinburgh Council is
developing an initial 12km long tramline that will link the
airport with the city centre and deliver an environmentally
friendly, fast and high-capacity service.
The track is predominantly off-street, but there is a significant on-street In 2011 the City of Edinburgh
section through the city centre which has required substantial enabling works Council reviewed and implemented
before infrastructure construction. change to the project governance.
On appointment, Turner &
Joining the project in Autumn 2011, Turner & Townsend was engaged Townsend swiftly resourced an
as project and commercial manager to oversee the Edinburgh Tram experienced team willing and able
infrastructure and tram supply contracts to completion. to react to client instruction and
project needs. This expertise in
Following delays to the project prior to our appointment, recovering public engineering, management and tram
confidence was a priority. We worked with the Council to rapidly mobilise systems, together with a proactive
the best in public and private sector capability to form a blended delivery approach with the City of Edinburgh
team designed to deal with the issues associated with implementing a street- Council, has brought order to the
running tram scheme within a World Heritage Site. project delivery model.”
Colin Smith, Senior Responsible Officer

The City of Edinburgh Council
Sellar
London Bridge Quarter
HIGHLIGHTS
n The Shard is the tallest building in Western Europe

n It is the first vertical city of its kind in the UK, and will include retail,
offices, restaurants, hotel, residential and public viewing galleries
n The Shard uses enough glass to cover eight football pitches, enough
concrete to fill 22 Olympic-sized swimming pools and 13.7 miles of piling
London Bridge Quarter is a Renzo Piano designed

development in central London which includes The Shard
and The Place, linked by a new train station concourse,
central plaza and new bus station at London Bridge Station.
Turner & Townsend is responsible for project management, contract

administration and design management, which has involved developing a
complex site over one of London’s main commuter hub stations while keeping
tubes and trains running underneath for over 50 million commuters a year.
With the transport infrastructure needing to be handed over in time for the We looked for a strong project
London Olympics, our people are closely integrated with the client team to manager, someone to expand
ensure multiple contractors and consultants deliver high quality on site. our ability. Over the period of
this job Turner & Townsend
Milestones this year have included erecting the final cladding, removing has listened, they have
external cranes, all plant operating on permanent power, completion of the offered a young, proactive
office entrance lobby, category A office space complete, Shangri-La tenant and enthusiastic team, they
fit-out commenced, London Bridge station concourse complete, bus station have been flexible and most
relocated and operational, topping out of The Place and the external completion importantly they have delivered.
of The Shard. These are the things that have
made them different.”
Bernard Ainsworth,
Project Managing Director
Sellar Property Group
39
Client delivery 15
Finance Director’s report Corporate social responsibility

35
39
Our
results
Jeremy Lathom-Sharp, Finance Director
Results for the financial year ended 30 April 2012 demonstrate

a strong performance in a tough operating environment, with
our UK and Europe regions facing the challenges of a sustained
economic downturn.
The year delivered a return to growth in the UK and substantial growth

in other regions, and consolidated net revenue has increased 20 percent
over the prior year. Net revenue, EBITA net and margins have increased in
all of our seven regions. Strong cash generation continues.

Basis of preparation
The financial results set out on pages 41 to 48 are extracted from financial
statements prepared under International Financial Reporting Standards.
Prudent accounting policies continue to be applied on a basis consistent
with prior years.
Revenue and profit

Our primary revenue measure, net revenue, was £244.3m (2011:
£204.3m), and our gross revenue (which includes subcontract revenue)
was £274.6m (2011: £236.5m). The geographic mix of our revenue
continued to develop during the year, with net revenue generated outside
the UK increasing by 35 percent over the prior year to £130.8m (2011:
£96.8m), and accounting for 54 percent of our total revenue.
EBITA amounted to £23.6m (2011: £16.0m). EBITA generated outside

the UK accounted for 50 percent of consolidated EBITA. Margins have
improved to 9.7 percent (2011: 9.2 percent), primarily due to
revenue growth.

Taxation Pensions
The taxation charge for the year was £6.9m (2011: Turner & Townsend operates numerous defined
£5.5m), representing an effective rate of 29.9 percent contribution schemes across our global business.
(2011: 31.6 percent). The decrease in effective rate Additionally, the business maintains one closed defined
arises from a shift in the geographic distribution of benefit scheme arising from the UK business. This
profits, and the reduction in the UK statutory rate. scheme was closed to new members in 1992 and to
future accrual in 2006. At 30 April 2012, the IAS 19
Cashflow and working capital deficit was £7.2m (2011: £4.8m). The movement is
Strong cash generation has continued through the primarily due to changes in actuarial assumptions.
financial year. Free cashflow of £14.1m (2011: £11.6m)
and cash conversion – defined as operating cashflow Treasury
as a percentage of EBITDA – of 97 percent (2011: 62 The treasury risks faced by Turner & Townsend include
percent), reflect good cash management principles interest rate risk, foreign exchange risk, credit risk
that continue to operate throughout our business. and liquidity risk. Instruments such as interest rate
The comparison with prior year reflects the improved swaps have not been entered into to mitigate risk, as
working capital management and timing of cashflows these risks are considered to be low. A two percent
around the year end date. increase to the cost of external finance would not
materially affect profit before tax. Contracts are mostly
Trade debtors continued to be collected in line with undertaken in the currency of local subsidiaries,
historic levels. Debtor days at the year end were 55 and therefore foreign currency revenue streams are
(2011: 59), with UK debtor days at 43 (2011: 49). For matched by the currency of the relevant cost base.
the eighth year running our year average debtor days
were less than 60, with an average of 59 (2011: 59). Jeremy Lathom-Sharp
Financing
Cash, net of overdrafts and bank loans, was £26.0m
at 30 April 2012 (2011: £23.9m). Net funds, including
£15.2m of mostly non-interest bearing long-dated loans
provided by shareholders, were £4.7m at the year end
(2011: £5.4m).
Turner & Townsend has committed undrawn facilities

to finance future operational cash requirements and
selective acquisitions in line with our strategic aims.
These were renewed in the year for a five-year period.
41
Client delivery 15
Financial results Corporate social responsibility

35
39
Consolidated income statement

Year ended) Year ended)
30 April 2012) 30 April 2011)
£’000) £’000)
Continuing operations
Revenue 274,646) 236,454)

Subcontract costs (30,299) (32,128)
Net revenue 244,347) 204,326)
Staff costs (166,549) (145,702)

Other direct expenses (18,348) (13,872)
Depreciation expense (2,467) (2,942)
Other operating charges (33,481) (25,864)
Operating profit 23,502) 15,946)
Analysed as:
Operating profit before amortisation and exceptional items 23,582) 18,769)
Amortisation (80) (65)
Exceptional items
Share-based payments expense –) (2,758)
Operating profit 23,502) 15,946)
Finance income 279) 206)

Finance costs (776) (434)
Net finance costs (497) (228)
Profit before taxation 23,005) 15,718)

Corporation tax expense (6,875) (5,538)
Retained profit for the financial year 16,130) 10,180)
Retained profit for the financial year:

Profit attributable to:
Owners of the company 15,804) 9,892)
Non-controlling interest 326) 288)
16,130) 10,180)
Financial results
Consolidated statement of comprehensive income
30 April 2012) 30 April 2011)
£’000) £’000)
Foreign currency translation differences for foreign operations (927) (490)
Actuarial (loss) / gain on defined benefit pension scheme (3,461) 414)
Deferred tax 773) (233)
Income and expense recognised directly in equity (3,615) (309)

Profit for the financial year )16,130) 10,180)
Total comprehensive income for the financial year 12,515) 9,871)
Total comprehensive income attributable to:

Owners of the company 12,189) 9,583)
Non-controlling interest 326) 288)
12,515) 9,871)
43
Client delivery 15
Consolidated statement of financial position
30 April 2012) 30 April 2011)

£’000) £’000)
ASSETS
Non-current assets
Property, plant and equipment 8,354) 7,425)
Intangible assets 10,185) 8,803)
Deferred tax assets 2,637) 2,048)
Total non-current assets 21,176) 18,276)
Current assets
Trade and other receivables 64,167) 52,619)
Cash and cash equivalents 25,966) 24,274)
Total current assets 90,133) 76,893)
Total assets 111,309) 95,169)
LIABILITIES
Current liabilities
Borrowings (711) (5,749)
Trade and other payables (57,781) (45,348)
Amounts due to shareholders (2,780) (1,434)
Current tax liabilities (1,467) (2,020)
Total current liabilities (62,739) (54,551)
Non-current liabilities
Borrowings (5,387) (442)
Amounts due to shareholders (12,378) (11,239)
Pension deficit (7,168) (4,838)
Total non-current liabilities (24,933) (16,519)
Total liabilities (87,672) (71,070)
NET ASSETS 23,637) 24,099)
EQUITY
Called up share capital 70) 70)
Other reserves 2,861) 3,793)
Retained earnings 20,706) 20,236)
TOTAL EQUITY 23,637) 24,099)
Total equity attributable to the equity holders

of the company 22,416) 23,760)
Non-controlling interest 1,221) 339)
TOTAL EQUITY 23,637) 24,099)

Financial results
Consolidated cash flow statement
30 April 2012) 30 April 2011)
)£’000) )£’000)
Cash flows from operating activities

Profit after taxation 16,130) 10,180)
Depreciation 2,467) 2,942)
Excess of pension contributions over service cost (1,182) (1,182)
Net finance expenses 497) 228)
Corporation tax expense 6,875) 5,538)
Increase in trade and other payables 12,889) 6,127)
Increase in trade and other receivables (12,331) (10,301)
Cash generated from operations 25,345) 13,532)
Interest paid (684) (213)
Corporation tax paid (7,248) (6,081)
Net cash inflow from operating activities 17,413) 7,238)
Cash flows from investing activities

Interest received 279) 206)
Proceeds from sale of property, plant and equipment 233) 410)
Acquisition of subsidiary undertakings (947) –)
Purchases of property, plant and equipment (2,863) (1,820)
Net cash used in investing activities (3,298) (1,204)
Cash flows from financing activities

Payment of finance lease liabilities (541) (647)
Shareholder loan repayments (4,280) (1,247)
Dividends paid (6,541) (3,500)
Purchase of own shares (354) (1,243)
Net cash used in financing activities (11,716) (6,637)
Net increase / (decrease) in cash and cash equivalents 2,399) (603)

Cash and cash equivalents at beginning of year 23,882) 24,771)
Effect of exchange rate fluctuations on cash held (315) (286)
Cash and cash equivalents at end of year 25,966) 23,882)
45
Client delivery 15
Cash and cash equivalents

)30 April 2012) 30 April 2011)
)£’000) )£’000)
Cash and cash equivalents include the following

for the purpose of the cash flow statements:
Cash at bank and in hand 25,966) 24,274)
Bank overdraft –) (392)
25,966) 23,882)
Turner & Townsend plc’s cash at bank and in hand
is denominated in the following currencies:
UK Pound 18,131) 19,337)
US Dollar 951) 1,110)
Euro 364) 683)
South African Rand 1,270) 301)
Chinese Yuan 990) 496)
Singapore Dollar 785) 397)
Australian Dollar 628) 383)
Other currencies 2,847) 1,567)
25,966) 24,274)
Financial results
Revenue
Middle Net Sub-contract)

UK Americas Europe Africa East Asia Australia revenue revenue) Total
Year
ended
30 April £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000) £’000
2012 113,543 36,737 24,451 16,737 8,081 16,642 28,156 244,347 30,299) 274,646
2011 107,534 23,564 20,938 14,117 5,622 12,999 19,552 204,326 32,128) 236,454
Operating profit
Middle Sub
UK Americas Europe Africa East Asia Australia total Eliminations) Total
Year
ended
30 April £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000) £’000
2012* 11,912 4,130 950 2,187 441 1,141 2,821 23,582 –) 23,582
2011* 11,258 2,605 653 1,808 300 786 1,359 18,769 –) 18,769
*F
igures are stated before amortisation and the 2011 figures before exceptional
share based payment expense of £2,758,000
Total assets
Middle Sub
UK Americas Europe Africa East Asia Australia total Eliminations) Total
Year
ended
30 April £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000) £’000
2012 88,996 15,639 11,758 7,021 4,372 8,552 7,380 143,718 (32,409) 111,309
2011 78,564 8,410 11,827 5,310 2,391 7,352 5,160 119,014 (23,845) 95,169
Net revenue by business segment Year ended Year ended

30 April 2012 30 April 2011
£’000 £’000
Property 124,495 123,257

Infrastructure 60,855 45,497
Natural resources 58,997 35,572
Total net revenue 244,347 204,326
47
02
Client delivery 15
Taxation
Year ended Year ended
30 April 2012 30 April 2011
£’000 £’000
Current tax 6,708 5,429

Deferred tax 167 109
Total taxation expense 6,875 5,538
Trade and other receivables

30 April 2012 30 April 2011
£’000 £’000
Trade receivables 50,624 42,155
Prepayments and other receivables 9,205 6,504
Unbilled amounts for client work 4,338 3,960
64,167 52,619
Trade and other payables

30 April 2012 30 April 2011
£’000 £’000
Trade payables 6,490 4,799

Accrued expenses and other creditors 37,501 27,849
Progress billings for client work 13,790 12,700
57,781 45,348
Financial results
Year ended 30 April 2012) 2011) 2010) 2009) 2008)
£’000) £’000) £’000) £’000) £’000)
Consolidated income statement
Revenue 274,646) 236,454) 216,651) 245,137) 211,590)
Sub-contract costs (30,299) (32,128) (25,037) (33,769) (32,879)

Net revenue 244,347) 204,326) 191,614) 211,368) 178,711)
Operating profit before amortisation and

exceptional items 23,582) 18,769) 20,060) 21,068) 17,053)
Amortisation (80) (65) –) –) –)
Exceptional items –) (2,758) (1,832) (5,502) –)
Results from operating activities 23,502) 15,946) 18,228) 15,566) 17,053)

Net financing (expense)/income (497) (228) (477) (314) 87)
Profit before taxation 23,005) 15,718) 17,751) 15,252) 17,140)
Consolidated balance sheet 2012) 2011) 2010) 2009) 2008)

as at 30 April £’000) £’000) £’000) £’000) £’000)
Intangible assets 10,185) 8,803) 8,945) 5,410) 5,093)
Fixed assets 8,354) 7,425) 8,101) 10,494) 10,400)
Deferred tax assets 2,637) 2,048) 2,353) 1,550) 1,197)
Current assets 90,133) 76,893) 67,556) 71,769) 56,847)
Total assets 111,309) 95,169) 86,955) 89,223) 73,537)
Current liabilities (62,739) (54,551) (50,295) (52,653) (51,341)

Total assets less current liabilities 48,570) 40,618) 36,660) 36,570) 22,196)
Non-current liabilities (24,933) (16,519) (17,093) (21,049) (19,274)

Net assets 23,637) 24,099) 19,567) 15,521) 2,922)
Equity
Called up share capital 70) 70) 70) 70) 70)
Other reserves 2,861) 3,793) 4,285) 2,513) 39)
Retained earnings 19,485) 19,897) 15,161) 12,938) 2,813)
Total shareholders’ equity 22,416) 23,760) 19,516) 15,521) 2,922)
Non-controlling interest 1,221) 339) 51) -) -)

Total equity 23,637) 24,099) 19,567) 15,521) 2,922)
Year ended 30 April 2012) 2011) 2010) 2009) 2008)

Average number of staff 2,484) 2,250) 2,176) 2,461) 2,252)
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Annual Review: Making The Difference

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Annual Review: Making The Difference

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Annual review

making the difference

diversity Looking ahead

Chief Executive’s report

Reaping the rewards of investment 11

Responding to changing client needs 15

Corporate social responsibility

Making a valuable difference 35

Finance Director’s report

Over a decade into the implementation of our strategy to build

I am delighted to report some outstanding results for 2011-2012,

Chief Executive’s report 11

Corporate social responsibility 35

Finance Director’s report 39

06/07 07/08 08/09 09/10 10/11 11/12

Profit before tax* (£m) 23

06/07 07/08 08/09 09/10 10/11 11/12

* before exceptional items

Throughout the year our projects continue to be Looking ahead

Chief Executive’s report 11

The Board Corporate social responsibility

Finance Director’s report

Tim Wray Chairman Vincent Clancy Chief Executive Officer

Jeremy Lathom-Sharp Finance Director Gordon Horsfield Non-Executive Director

Working together worldwide

Global Client Relationship

HIGHLIGHTS Anglo American is one of the largest mining

Turner & Townsend has supported us

Nic Du Toit, Global Head of Projects

For three decades, we have been committed to supporting Anglo

Americas UK Europe Africa Middle East Asia Australia

Brisbane Airport Corporation

Programme management office

Specific benefits to this approach for BAC include:

Brisbane Airport expects passenger numbers to

BAC asked us to provide a full range of programme management services

Key features of this approach include integration with other project

The programme office has delivered a step change in BAC capability in

Chief Executive’s report 11

Chief Executive’s report Corporate social responsibility

Finance Director’s report

Looking at our results this year, it is clear that the strategy

Our investment in globalisation has reached a significant milestone:

Chief Executive’s report

Despite the economic environment, we substantially

Natural Property Infrastructure

Chief Executive’s report 11

Corporate social responsibility 35

Finance Director’s report 39

It is a testament to how far we have come that, despite Vincent Clancy

of our revenue was generated

EAME capital projects

n the facility at Monthey is at the forefront of crop protection production

Syngenta is a world-leading specialised chemicals company

Chief Executive’s report 11

Client delivery Corporate social responsibility

Finance Director’s report

Mark Kelly, Managing Director

Turnover in emerging markets

Neil Bullen, Managing Director

Seletar campus, Singapore

Rolls-Royce’s £350m Seletar campus in Singapore is at the

In shaping ourselves to meet these needs, we have

n the facility at Monthey is at the forefront of crop protection production

n £75.9m capital efficiencies (OFWAT accepted cost savings) to date: £59m