Building

momentum
Annual review 2013 – 2014

Turner & Townsend Annual review 2013 – 2014

www.turnerandtownsend.com
Iconic
projects,
complex
programmes

£357m
turnover +12%

We are market leaders,

shaping the industries we
work in. By investing in
our capability we deliver
innovative solutions that
transform complex capital
programmes around
the world.

Building momentum
Photography credits
Battersea Project Land Company Limited, page 1
Abu Dhabi Airports, page 3
Harald Pettersen, Statoil ASA, page 5
Infiniti, page 20
Transport for NSW, page 24
Heathrow Airport Ltd, page 25
INPEX, page 28
Glencore, page 29

Designed by
www.luminous.co.uk

Paper credits
This document is printed on Cocoon Silk 50 paper
made from 50 percent de-inked, recycled pulp
and 50 percent Forest Stewardship Council®
certified products.
Regeneration of an icon
The £8bn Battersea Power Station site
redevelopment will preserve a historic icon
and set new standards for living and working
in the capital.
The complex made simple
We are providing project management and
employer’s agent services on the first two
phases of this seven-phase development. When
completed, Battersea Power Station will be the
jewel in the crown of an even larger riverside
transformation at Nine Elms – regenerating
an underdeveloped corner of Central London.
People at
A new vision for aviation Controlling complexity

Part of a wider £6.2bn expansion programme, With 18,000 people working on the construction

the heart of
Abu Dhabi Airport’s 700,000m2 new terminal of the terminal, the sheer scale of the programme
building will triple its passenger capacity. demands accurate budgets, a strict schedule, and
proactive management of any risks. It’s our task

our success
to deliver cost estimating services, scheduling,
and risk management to this major programme.

3,660
employees +13%

We are dedicated to investing

in our people and building on
the culture that has brought
us success with the world’s
leading companies.

Building momentum
One global
Platform for growth Depth of experience

From Statoil’s first field, to the Sleipner Our latest role is in support of the Johan

business
platform (pictured), to projects today, we
have been involved in more than 15 of Statoil’s
major developments on the Norwegian
continental shelf since 1980.
Sverdrup field development, preparing major
construction contract packages for one of
the largest and most exciting oil discoveries
in decades, with an anticipated lifetime of
50 years.

87
offices +8

As we continue to grow
our footprint, we ensure
that knowledge is transferred
between people, regions
and sectors to deliver the
best outcomes for our
clients, wherever they are.

Building momentum
In brief

Turner & Townsend is an independent With 87 offices in 36 countries, we draw on

professional services company specialising
in programme management, project
management, cost management
and consulting across the property,
infrastructure and natural resources sectors.
our extensive global and industry experience
to manage risk while maximising value and
performance during the construction and
operation of our clients’ assets.

We strengthened our
market-leading position
across our core sectors:
property, infrastructure
and natural resources.

54%
regional revenue
Over half of our revenue was
generated outside the UK.

£357m 87 8/10 £34m

turnover offices client satisfaction operating profit
Our turnover increased
by 12 percent.
We opened eight new
offices, giving us a total
of 87 global sites.
We have maintained our high
standard of client care.
Our operating profit grew
by 13 percent. Contents
Chairman’s overview 8

Chief Executive’s report 10

Global capability 14

Regional performance 16

130 3,660 Property 18

Infrastructure 22

countries people Natural resources 26

We supported projects We grew our workforce Our people 30
and programmes across by 13 percent.
Our leadership 36
130 countries.
Risk management 40

Finance Director’s report 42

Financial results 44

We invested in our global Our portfolio of major

capability and service programmes continued to
offering, moving into grow. In Darwin, Australia,
new markets and building we are supporting INPEX
our headcount. to deliver one of the
largest LNG processing
facilities in the world
(see page 28).
6 Turner & Townsend Annual review 2013 – 2014 7
 £357m
turnover

09/10 £217m
10/11 £236m
11/12 £275m
12/13 £318m “Over the past four years alone the Management and staff continue to respond to the
13/14 £357m company has grown turnover at a rate changes, challenges and opportunities which have
arisen over recent years in ensuring our ongoing
of 13 percent per annum, and that
success. Their hard work and dedication, in making

£34m
momentum has continued unabated.”
the difference through excellent performance for
our clients, remains our key strength.
As our global reach has grown, I am proud to see the
business continue to operate as one, to the benefit of
operating profit
the whole. Much of the credit for this lies with our Chief
Executive Officer Vincent Clancy and his executive
09/10 £20m
team. On behalf of the Executive Board, I would like to
10/11 £19m
thank our management and staff for their commitment,
11/12 £24m focus and hard work over the year.
12/13 £30m
13/14 £34m
Membership of the Executive Board remained stable
over the period and continues unchanged, although our
collective skills and capabilities are regularly reviewed to
ensure strong leadership of the business into the future.
Recognition in the form of awards always has a
tremendous feel-good factor, and this year has seen
some exceptional successes, which is a great indicator
of how our peers and the industry at large see us.
They included The Queen’s Award for Enterprise in
International Trade – for the third time in the last
ten years – and both Consultant of the Year and
Chief Executive of the Year at the Building Awards.

Chairman’s
It gives me great pleasure to report on another
excellent year for Turner & Townsend.
Being a Yorkshire man myself, I must also mention
Our UK business achieved sound growth, while revenue
the Yorkshire Post Board of the Year Award,
from our other seven regions contributed 54 percent of
recognising companies headquartered in Yorkshire.

overview
Not only have we delivered outstanding financial results
overall, but we have achieved this despite some of our
global trading regions recovering at a slower pace
than most.
Over the past four years alone the company has grown
turnover at a rate of 13 percent per annum and that
momentum has continued unabated. This is testimony
to the resilience of our business model of diversification.
Turnover in 2013 – 2014 grew from £318m to £357m,
with profit (before interest, amortisation and tax)
at £34m (2012 – 2013: £30m). This is growth of
12 percent and 13 percent respectively.
The EBITA profit margin was 10.6 percent, slightly
up from last year (10.5 percent). The balance sheet
remains strong as does the liquidity of the company,
and at the year end we had nil gearing and net assets
of £46m.
group turnover, reflecting our continued drive to invest
We also received a range of prestigious awards around
in and grow our global capability. During the year, we
the regions.
celebrated the first anniversaries of our mergers with
HA Brechin in Hong Kong and Pearson Lugard in With global economies improving, the structure in place
Norway, and both are performing well. and vision to continue with our current strategy of
diversification, we have the momentum to carry us
Performance and growth in several regions – North
forward apace. I believe the business is in a strong
America, the Middle East and Asia – have been
position for the 2014 – 2015 year and beyond.
exceptional. In North America, we have opened new
offices in Seattle, Phoenix and Chicago, which combined
with the opening of new offices in Rio de Janeiro,
Tim Wray
Bogota, Hamburg, Maputo and Jakarta during the
Chairman
year, brings the total number to 87.
During the year our staff numbers grew to 3,660, an
increase of 13 percent. As a business, we are totally
reliant on the skills and commitment of our people.
Our regional growth provides many of them with
opportunities to work on landmark projects and
programmes all over the world.

8 Turner & Townsend Annual review 2013 – 2014 9


“We have delivered strong
results but crucially, we
have built an even stronger
platform for future success.”
Vincent Clancy
Chief Executive Officer
Chief
Sustainable long-term growth, building a business
with unparalleled capability and growing a
Executive’s
reputation built on delivering exceptional outcomes
for our clients. These goals remain our key focus.
report
Achieving this, particularly in turbulent markets, means
balancing short and longer-term goals. In a year where
we have once again delivered record turnover and
profit, I am pleased that we have done so while building
further momentum towards our long-term objectives.
We have delivered strong results and an even stronger
platform for future success.
It’s worth reflecting on markets during the year. Despite
an overall positive sentiment that the worst of the global
financial crisis is behind us, markets remained
extremely variable.
Ironically, while we saw some of our mature markets,
such as the UK and North America, start to pick up, the
new high-growth markets, particularly in Australia, Asia
and Africa, were more unstable.
10
12%
turnover growth
Despite these regional variations, the diversity of our
business model has again allowed us to deliver ahead
of expectations. Our operations in North America, the
Middle East and Asia saw revenue growth of 30 percent
or more, and the UK and Europe grew by 11 percent
and nine percent respectively.
Conditions in Africa and Australia remained challenging
due to the impact of capital investment cuts in natural
resources. In Africa, there was the added impact of local
market and exchange rate issues, which meant that
volumes were slightly impacted.
Overall, our turnover increased by 12 percent, and on
a like-for-like exchange rate basis by 16 percent. As we
grow our international revenue, the impact of exchange
rate movements becomes more significant and results
were affected by a significant strengthening of the
pound during the year.
Building capability
Building momentum for the long term has seen us
continue to invest in our capability and reach. At the
heart of our promise to our clients is a commitment to
service them on a local, regional or global basis, in a
consistent and joined-up way. To this end, we are ever
mindful that we need to build resource depth in our
core markets.
At year end we had a global workforce of 3,660 across
87 offices, up 13 percent. We invested in our presence
in Latin America, the Middle East and Asia, and opened
new operations in Seattle, Phoenix, Chicago, Bogota,
Rio de Janeiro, Hamburg, Maputo and Jakarta. At the
same time, we developed our capability in key regional
hubs. As we grow, we become even more committed to
ensuring that our people remain connected and part of
one business.
We continue to strengthen our market-leading position
across our core sectors: property, infrastructure and
natural resources. This approach gives our clients access
to cross-sector learnings and new ideas, but it also
insulates our business from being over-reliant on any
one area.
The benefit of this strategy was highlighted this year
when we were able to absorb significant reductions in
capital expenditure in mining and metals by redirecting
our attention to other market opportunities.
At year end our sector revenue split was 48 percent
property, 24 percent natural resources and 28 percent
infrastructure.
Property
Demand in most of the world’s property markets grew
over the year. In the hi-tech, life sciences, developer
and residential sectors, increasing demand was
particularly evident. We also saw encouraging signs
of more corporate end-user activity.
We continue to grow our market share with developer-
led clients. We are involved in a number of city centre
schemes including the redevelopment of Battersea
Power Station, 1 – 5 Grosvenor Place in London, and
Time Warner’s headquarters move to the new Hudson
Yards development in New York City.
We are immensely proud to work for the world’s most
iconic brands and companies and believe that we are
in a unique position to leverage our global capability
to grow with them.
An ever-increasing trend has been for large firms
to implement radical and innovative approaches to
transform the delivery of their capital programmes.
Many are starting to procure on a regional or global
basis and most are looking at how to drive performance
by adopting robust, centrally managed, programme-led
principles.
As natural partners for transformation, we have
benefited from this shift in the market and have gained
a number of major programme commissions with the
likes of Barclays, Chevron and Nissan.
Infrastructure
Global investment in infrastructure continues to rise, as
does demand for programme partners who can combine
their global expertise and local market knowledge to
help secure investment, improve predictability and
deliver efficiencies to stakeholders.
In the face of this opportunity, our infrastructure
business performed well, growing revenue by
21 percent in 2013 – 2014.
We have successfully built a strong presence in the
Middle East and Australia to match that in the UK and
Africa. In Australia, we now have an enviable track
record in both rail and aviation, working on a number
of the region’s largest projects from inception to
delivery. Most recently, we were awarded a delivery
management role on Sydney’s £4.9bn North West Rail
Link – Australia’s largest public transport project and
a scheme which we helped to achieve investment
approval (see page 24).
Turner & Townsend Annual review 2013 – 2014 11
Chief Executive’s report

13%
In the Middle East, we are pleased to be supporting “We will continue to make the difference
five of the region’s major airport programmes – in to our clients’ projects and programmes,
Abu Dhabi, Riyadh, Dubai, Muscat and Doha. Our
connected by our culture of collaboration
work on Qatar Rail, one of the world’s largest rail
and focus on exceptional outcomes.”
projects, continues.
operating profit growth
We also significantly grew our capability and client base
in North America, Europe and Asia. In Hong Kong, we

3,660
are building a platform for future success on the back of
commissions for the MTR Corporation and the territory’s
Airport Authority.
In North America, we enjoyed early success both from
a P3 (PPP) perspective, supporting funders, and also in
positioning for more traditional services. people

+8
Involvement in prestige programmes such as Crossrail
and Edinburgh Tram contributed to the continued
growth of our UK business. In addition to celebrating
the completion of Terminal 2 at Heathrow, we were
appointed as sole provider of cost management,
commercial and project controls services for the
new offices
airport’s next five-year investment period, building
on a 20-year relationship (see page 25). We also
secured a number of new frameworks, including one
for programme management and project services
for National Grid.
Natural resources
Our natural resources business achieved a strong
performance this year, despite challenging conditions.
Oil and gas remained resilient and global capital
programmes continued, but demand for commodities
stayed low, leading mining and metals companies
to focus on capital cost efficiency within their
existing operations.
We reacted swiftly, not only by redeploying resources in
the hardest hit markets of Africa and Australia, but also
by shifting our service emphasis to business-as-usual
projects, helping mining companies get more from their
existing operations. It is set to be another difficult year
for the mining industry, but we will continue to invest so
that we are well positioned for recovery.
In oil and gas, the market changes have been less
pronounced, but it is clear that a shift is also occurring,
with the major clients reshaping their assets and
becoming more selective with investments. In particular,
the affordability of projects is under considerable
scrutiny. We expect cost reduction and more efficient
delivery to be key themes over the coming year.
Delivering exceptional outcomes
We know that building a reputation that allows us to
shape and influence markets and industry requires
long-term thinking and investment.
This year we have continued to invest in our footprint,
our service model and our people. We have created
real excitement around using data to give clients more
informed choices; we have developed technology
solutions to help us control and assure major
programmes; and we have developed our thinking
around Building Information Modelling (BIM) to give
clients a tool to manage assets over their full lifecycle.
We recognise that being intelligent and being connected
are two great enablers.
At the heart of our success are our people and culture.
Attracting, retaining and developing talent remains our
number one priority. This year saw our largest ever
global graduate intake, we have rolled out improved
leadership and technical training, and we have worked
hard to give our people the support, incentives and
rewards they need to excel.
With offices and projects across many sectors
and locations, we provide exceptional opportunities for
people to develop experience and skills, which in turn
supports our clients, wherever they are in the world.
Our employees are drawn from increasingly diverse
backgrounds. We now have 66 nationalities, speaking
82 languages. That said, while we have made some
steps in the right direction, we still have a long way
to go to create a truly diverse workforce.
In particular, we are focused on increasing gender
diversity at senior management levels. I’m hopeful
that we will see improvement in the short term through
positive support. There are some encouraging signs
– this year a record 40 percent of our graduate intake
will be women.
Looking ahead, it is clear that we will continue to
operate in variable markets and that, even with signs
of improvement and economies picking up, clients will
remain focused on efficiency and achieving greater
value. We see great opportunity within this landscape,
and by maintaining our focus on growing our capability
we are confident that we will build even greater
momentum in the coming year.
Our people will continue to make the difference to our
clients’ projects and programmes, connected by our
culture of collaboration and focus on exceptional
outcomes. Our success is down to their hard work
and dedication, and I would like to express my sincere
gratitude for their commitment and support.
Vincent Clancy
Chief Executive Officer

12 Turner & Townsend Annual review 2013 – 2014 13

Global
We progressed key projects Exceptional growth in
including Crossrail and Russia and the CIS helped
Battersea Power Station boost Europe revenue by

capability
redevelopment, and completed nine percent.
the SSE Hydro Arena in Glasgow
and the Edinburgh Tram.

33%
revenue growth

30%
revenue growth UK

North America 1,623 Asia

Our infrastructure business had
a milestone year in Hong Kong,

481 481
employees securing new contracts with the MTR
Corporation and the Airport Authority.
£148.2m revenue Europe

294
employees 13 offices employees

£56m revenue
14 offices employees

£27.6m revenue
£25.7m revenue
15 offices 46%
revenue growth

We secured a full programme 20 offices

management commission for
Time Warner’s headquarters
move to Hudson Yards in
New York City. Middle East

205 employees

£17.9m revenue
4 offices In the Middle East we are
Latin America pleased to be supporting

63
five of the region’s major
airport programmes.

employees
Africa

267
£5.3m revenue Australia

246
5 offices

employees
Our team in Brazil trebled
in size and we opened an £14.9m revenue employees
office in Rio de Janeiro. 7 offices £26.5m revenue
We also opened our first
office in Colombia. 9 offices

Employee numbers grew by

20 percent, as we built our capability
in Uganda and opened a new office in
Maputo, Mozambique.

Our diversity enabled us

to direct our focus towards
opportunities across the
property and infrastructure
sectors, where we won new
work with several retailers,
National Australia Bank and
Transport for NSW.

14 Turner & Townsend Annual review 2013 – 2014 15

Regional
performance
North America
Bruce McAra
Managing Director
We grew revenue by 30 percent this year and opened
new offices in Seattle, Phoenix and Chicago. We
strengthened relationships with long-standing global
clients such as Nissan and secured a full programme
management commission for Time Warner’s
headquarters move to the new Hudson Yards
development in New York City.
Our successful performance in the hi-tech sector
continued, particularly on the West Coast of the US.
Oil and gas also performed well, as a result of work
with our global clients on their major programmes,
as well as several new wins in the LNG and
petrochemical sector.
Looking ahead, we will build on our growing reputation
in programme management, cost management and P3,
and develop our presence in the aviation sector.
UK
Steve McGuckin
Managing Director
We have continued to outperform in a turbulent market,
growing revenue by 11 percent. Our commitment to
delivering exceptional outcomes helped us grow our
client base through the development of new and existing
relationships. We were pleased to be appointed as sole
provider of cost management, commercial and project
controls services for Heathrow Airport’s next phase
of development, building on a 20-year relationship.
Our teams progressed major programmes such as
Crossrail and the Battersea Power Station redevelopment,
and completed the Edinburgh Tram and SSE Hydro
Arena in Glasgow. Over the following year, we will
continue to invest in our services and capability to
continue this momentum.
16
Latin America
Robert Edwards
Managing Director
Our goal this year was to grow capability and develop
our senior management team and we made good
progress across the region. Our team in Brazil trebled
in size and established a new office in Rio de Janeiro.
Our business in Chile grew by 25 percent due to
a number of high-profile natural resources and
property commissions.
Our new office in Bogota will provide a hub to further
expand our presence across Colombia and the Andean
region. Looking ahead, we see significant growth
opportunities in natural resources and property,
supporting the major investments of our global clients.
We will also continue to broaden our service offering in
infrastructure.
Europe
Jon White
Managing Director
We achieved a positive performance across the region,
with exceptional growth in Russia and the CIS helping
to boost our revenue by nine percent. We invested in
deepening our capability and service offering, opening
a new office in Hamburg and fully embedding our
recently acquired Norway business, which continues
to strengthen our position in the oil and gas sector.
In property, we were made a preferred supplier to
Johnson & Johnson, won a framework appointment for
Roche, completed a new office headquarters for Osram
in Munich and supported the delivery of Gazprom
Export’s new headquarters in St Petersburg, which is
still ongoing. In the next 12 months, we will focus on
building our presence in the infrastructure sector and
further deepen our capability across our core markets.
Africa
Ian Donaldson
Managing Director
It has been a year of diversification, both in the sectors
and the regions we serve and in the services we offer.
Our employee numbers grew by 20 percent as we
expanded our capability in Uganda and opened a new
office in Maputo, Mozambique. This growing footprint
has protected us from downturns in South Africa and
Botswana, while allowing us to offer greater local
support and knowledge to our global clients.
Key highlights include our expansion into the health
sector, and new commissions from global clients such
as Barclays. In the year ahead, we will establish
permanent hubs in Kenya and West Africa and increase
our support of many other project locations across
the continent.
Asia
Duncan Stone
Managing Director
We had an exceptional year across Asia, with revenue
up by one-third and profit up 14 percent. Our growing
oil and gas business drove expansion in Malaysia,
Indonesia and South Korea, servicing major
programmes for clients such as INPEX and Petronas
Carigali. We expanded our presence in Bangalore and
Kuala Lumpur and opened a new office in Jakarta –
our first solid step into Indonesia.
In property, we won commissions for hi-tech, retail
and corporate clients in India and southern China,
for clients including Infiniti and Godrej & Oberoi.
Our infrastructure business had a milestone year
in Hong Kong, securing new contracts with the
MTR Corporation and the Airport Authority.
Middle East
Mike Collings
Managing Director
With revenue up 46 percent, the past year has seen us
build on our historic strength in infrastructure to secure
significant new commissions in property and natural
resources. Supporting our growth in Qatar and the UAE,
we have moved to larger offices in Doha and Dubai.
We continue to make progress in the aviation sector
and are now supporting the five largest airport
programmes in the region. Underlining our growing
reputation, we have also secured appointments with
eminent local property companies Qatari Diar, Emaar
Properties, Meraas Holding and Majid Al Futtaim,
as well as a new framework agreement with major
mining firm Ma’aden.
Australia
David Todd
Managing Director
Our business delivered a steady performance in a
challenging market. Natural resources capital projects
continued to slow and markets felt the impacts of public
sector spending cuts. Our diversity of services and
expertise enabled us to redirect our focus towards
opportunities in the more buoyant property and
infrastructure sectors, where we secured commissions
with major corporations such as National Australia
Bank, well-known retail brands, and government
entities such as Transport for NSW.
We also had our first significant commission in New
Zealand for the University of Canterbury. Going forward
we see strong growth opportunities around Sydney and
Melbourne, particularly across major programmes in
the infrastructure and corporate property sectors.
Turner & Townsend Annual review 2013 – 2014 17
Property
The last 12 months were encouraging for the
property sector. Confidence grew, and in many
developed economies around the world, markets
recovered beyond the previous highs of 2007.
We witnessed the emergence of the ‘intelligent’ private
sector property client, who recognises that capital will
continue to be scarce, must be more closely aligned
with corporate objectives and who actively seeks to
collaborate with the global supply chain to deliver
more for less.
Against this backdrop, we achieved some major
milestones on world-leading urban developments,
including the start of construction on the redevelopment
of Battersea Power Station in London. In New York City
we commenced the development management of
Time Warner’s headquarters move to Hudson Yards on
Manhattan’s west side.
£154m
Retail contributed strongly to property revenue growth
in Africa, Asia and Australia. We are working on new
commissions for National Australia Bank, and supporting
existing clients, such as Audi, Barclays, BMW and
Infiniti, in new markets.
revenue
The last 12 months have seen manufacturing
09/10 £125m
investment return to Europe, and we were pleased
10/11 £123m
to secure frameworks with clients such as Rolls-Royce.
11/12 £124m
In life sciences, we built on our cost management
12/13 £141m
role on the recently completed £500m Francis Crick
13/14 £154m
Institute in London by winning significant multi-region
frameworks with clients such as Roche, and becoming
9%
a preferred supplier to Johnson & Johnson.
Despite the challenges of transitioning markets, our
global footprint and diverse sector base enabled us
to grow our global property revenue to £154m from
£141m the previous year.
growth
Natural
New trends emerge
resources There has been a shift in approach among corporate
property clients in the financial, retail and oil and gas
24%
sectors, who want to manage their global property
48% portfolios and capital spend centrally and in a more
28% intelligent way. We are working with clients including
Property Barclays, Nissan and Chevron on transformational
programme management models that deliver control
and consistency, cost efficiency and reduced risks.
Infrastructure
Hi-tech clients are looking to us for innovative solutions
to help drive efficiency across their portfolios. For
example, data centre developments face a number
of challenges, with a requirement for fast delivery and
adaptability. We have developed new solutions, such
as using BIM to manage whole-life operating costs to
help secure better portfolio outcomes.
The quality, sustainability and working practices of
supply chains can enhance – or conversely damage –
a company’s brand as it expands into new markets.
We are working with global retailers, such as Tesco and
Marks & Spencer, to deliver their capital investments
safely and sustainably, protecting and enhancing
their brand reputation.
Looking ahead
We expect significant changes over the next five years,
driven by low interest rates, increased global movement
of capital and the lessons learned from the global
financial crisis. Our clients understand the value that
their property assets must generate to help them
achieve their wider corporate objectives. They will
increasingly call for solutions to their business needs,
rather than looking for traditional services on a project-
by-project basis.
In response, we will continue to provide expert teams
informed by leading-edge intelligence and market
insight, leveraging technology and data across all
market sectors. Expertise in programme and change
management, capital investment planning, asset
performance, innovation, sourcing and procurement,
lean processes and progressive assurance will all be
an integral part of our offering.
Corporate real estate teams will move to lean and
flexible models, requiring programme partners to
deliver central control and drive consistent local
delivery. Our aim is to continue to be the partner
of choice, delivering better lifecycle outcomes for
our clients across their property assets.
Turner & Townsend Annual review 2013 – 2014 19
Property
Protecting the Organisations delivering multi-territory
capital investment programmes require
brand on Infiniti’s common standards and approaches,
global roll-out control, and visibility of performance
at every level. In addition to central
control, they need the expertise to deliver
locally, and the agility to respond to
shifting priorities.
Our ten-year relationship with luxury
automotive brand Infiniti was taken
to the next level in 2014, when they
commissioned us to drive efficiencies
and act as guardians of their brand
on their global expansion programme.
The initial three-year phase includes
the roll-out of new retail spaces and
showrooms across 48 countries.
Making the difference:
nnCentralised control and visibility
of costs, risk and performance are
provided through a Programme
Management Office (PMO) in Hong
Kong, co-located with Infiniti’s
management team
nnOur global footprint provides deep
capability across Infiniti’s target
markets, combined with commercial
awareness and sensitivity to local
nuances and supply chains
nnConsistency of service is assured
through continuous performance
improvement reviews
nnBrand values are upheld by immersing
our team in Infiniti’s vision and
values through tailored training
and development
nnFlexible and agile resourcing enables us
to meet fluctuating demand efficiently
“Brand is critical to Infiniti. We
needed to select a team that
could deliver with consistency
across the globe. Turner &
Townsend’s proposition for our
global PMO was delivered with
passion and energy and is truly
aligned with what we are aiming
to achieve.”
Sam Chung
Global Director, Retail Network
Development, Infiniti
3
year initial phase
48
countries
10
year relationship with Infiniti
Exceptional Transforming a corporate headquarters
in the middle of a busy city brings with it
outcomes for PwC significant challenges. Companies looking
to future-proof their property assets have
to balance often conflicting goals: ensuring
business continuity while delivering an
affordable workplace on time, and to
exacting sustainability, technology and
safety requirements.
PwC, as part of a seven-year programme
to consolidate nine buildings into two,
elected to completely refurbish One
Embankment Place, its headquarters since
1991. Leading a multidisciplinary team, we
worked through the whole project lifecycle
from devising the procurement strategy,
planning and managing delivery through to
change management as the transformed
building was put into full use.
Making the difference:
nn‘One team’ culture, reflecting PwC’s
ethos of collaboration, started with our
procurement selection process and was
reinforced by a co-located team and
initiatives such as joiners’ briefings
to explain the team vision
Turner & Townsend Annual review 2013 – 2014 21
“The commitment, diligence,
professionalism and undoubted
passion of the Turner &
Townsend team have played
an immense part in the success
of the project. As a firm we
emphasise the importance
of teamwork. Their people
were fundamental to that
ethic, providing the glue to
embrace the wider team.”
Paul Harrington
Head of Real Estate, PwC
40,000m2
area
96.31%
BREEAM Outstanding rating
8
year relationship with PwC
nnBREEAM Outstanding rating reinforced
PwC’s core brand value of sustainable
practices, achieved by a process
managed and assured by our team
nnEfficient delivery, through innovative
logistics and contingency planning.
Despite restricted access to the site
during the London 2012 Olympic
Games, multiple retail occupiers on
the ground floor and working around
a live central London railway station
nnBusiness continuity was maintained
through rigorous planning and
management, including a formal
framework for information flows
between the construction team and
the 1,500 staff who remained in
occupation throughout the works
nnChallenging programme of 28 months
to plan, design, procure, deliver and
reoccupy the 40,000m2 building
with 4,000 staff, enabled by a novel
procurement strategy, combined with
a robust system for controlling cost,
budget and programme
Infrastructure

As urbanisation places ever-increasing demand
on utilities and transport, investment in
infrastructure programmes has never been higher.
Given the complexity of such programmes, and the need
to set up and deliver them efficiently to world-class
performance standards, there is growing demand for our
global expertise and local market knowledge to attract
finance, improve outcomes and deliver efficiencies.
This year we have seen strong activity centred around
four hubs: the UK, the Middle East, Africa and Australia.
We also grew our capability and client base in North
America, Europe and East Asia.
Our revenue in infrastructure continues to rise, from
£75m in 2012 – 2013 to £91m in 2013 – 2014. Income
from major rail and airport programmes grew to £56m
and contracts in roads, ports, water and power
Our sector knowledge and global benchmarking capability
has been deployed to build the business case for
investment, set projects up for success, ensure value
for money and provide the basis for intelligent decision-
making. Our clients Transport for NSW and Qatar Rail
have both achieved world-class standards of efficiency
by continually benchmarking current and proposed
solutions against comparable programmes within our
global portfolio.
Established operating companies also seek more for
less. At Anglian Water, we supported the development
of a performance-based delivery model, which has now
been adopted by a number of other organisations. At
Crossrail, we implemented a performance improvement
programme, which has been applied across a number
of other major programmes.
Bringing assets into operation is always a major risk

£91m
contributed a further £35m.
and an area of growing activity for us. We supported
The development of relationships with clients such Heathrow Airport Ltd in the planning and delivery of their
as Heathrow Airport Ltd, Magnox, Network Rail and operational readiness and airline move programme, which
Transport for London contributed to continued growth enabled the successful opening of Terminal 2.
in the UK, which provided 76 percent of global
revenue BIM is becoming an increasingly important management
infrastructure revenue. However, our overseas revenue
tool for infrastructure owners and operators. On Abu
09/10 £42m is now growing at a faster rate with the Middle East
Dhabi Airport’s Midfield Terminal Building, we leveraged
10/11 £45m contributing 12 percent of sector revenue, Australia
our independence to support the client in identifying the
11/12 £61m six percent and Africa four percent.
best solution for future operation and maintenance as well
12/13 £75m In the Gulf regions, we are working on almost every as design and delivery.
13/14 £91m major airport project: in Abu Dhabi, Riyadh, Dubai,
Looking ahead
Muscat and Doha.
As we grow our global infrastructure business, our

21%
In Hong Kong, we are building a platform for growth on primary focus is on delivering a consistently exceptional
the back of new contracts with the MTR Corporation and service, and providing deeper collaboration and
the territory’s Airport Authority. connectivity of intelligence and best practice to drive
We secured two major rail wins in Australia with our programme delivery performance. Investment in
long-standing client Transport for NSW: the Central initiatives such as our Major Programmes Advisory Group,
growth
Business District and South East Light Rail project, and which we set up this year to provide strategic advice to
Natural
resources North West Rail Link. On both projects our involvement our clients, will help us to remain the partner of choice.
has expanded from the feasibility phase into delivery. Our goal is to continue to enable the intelligent delivery
24%
Advising across the programme lifecycle of major infrastructure programmes to serve future
48%
The challenges our clients face include securing funding, generations and to establish an informed client
28%
identifying the most effective delivery model, getting the community that learns from global best practice
Property
best buy from the market, incentivising supply chains to for the common good.
deliver at exceptional performance levels and bringing
assets into operation.
Infrastructure
We provide advisory services across the whole lifecycle
for clients creating new infrastructure assets and
organisations that are extending the life of existing assets.

Turner & Townsend Annual review 2013 – 2014 23

Infrastructure
Global The initial goal in setting up a major
public transport programme is to secure
benchmarking investment as efficiently as possible by
helps define building a robust business case. The scale
and complexity of such programmes
Sydney’s North means they are often ‘one-offs’, making
West Rail Link it challenging to achieve the cost accuracy
necessary to inform investment decisions.
We worked with Transport for NSW as
part of an integrated project team to build
a compelling business case for investment
in Sydney’s £4.9bn North West Rail Link
– Australia’s largest public transport
project. Our role involved scrutinising the
cost implications of design, programme
and procurement options and preparing
the capital cost estimate for the preferred
project. We were recently appointed
to a delivery management role for
the Operations, Trains and Systems
PPP Contract.
Making the difference:
nnGlobal standards of cost efficiency were
achieved by benchmarking costs on
an element-by-element basis with the
best-in-class costs from comparable
programmes in our global portfolio
nnWe mobilised knowledge and resources
from our people working on the world’s
most challenging publicly funded rail
projects, including Crossrail and
Qatar Rail
nnOur specialist experience and data were
required to assess the diverse range of
construction techniques and technology.
This includes fully automated trains – a
first for Australia – the elevated skytrain
section, and the tunnel drives
nnAn ambitious, affordable solution was
developed, which will deliver a much-
needed, reliable public transport service
nnInsight into rail PPP, for the Operations, Trains
and Systems Contract, came from our serial
involvement in projects around the world
£4.9bn
cost of programme
23km
of new track
8 Terminal 2 (T2) at Heathrow is the latest
new stations
End-to-end Competing within a global marketplace,
the goal of any major airport development
capability helps is to create a world-class facility with
Heathrow T2 passenger experience at its heart. Always
complex, the safety, security and logistical
take flight
challenges are magnified when that
development takes place within a live,
operational site at the centre of a major
international airport.
The £2.5bn development of a new
phase in the airport’s evolution. We helped
it open on time, under budget and with
an exemplary safety record, providing
extensive cost, commercial, project controls,
project and programme management
services from set-up to the first flight
and beyond.
Making the difference:
nnOne culture: we have supported
Heathrow Airport Ltd (HAL, formerly
BAA) for 20 years, working seamlessly
as part of a co-located and integrated
project team for much of that time
Turner & Townsend Annual review 2013 – 2014 25
“I am always impressed by the
forward-looking, professional
and collaborative approach of
Turner & Townsend and I look
forward to continuing to work
with many of their excellent
people as they collaborate with
our programme designers,
delivery integrators and the
Heathrow client team.”
Phil Wilbraham
Development Director,
Heathrow Airport Ltd
£2.5bn
cost of T2
20 million
annual passengers
20
year relationship with
Heathrow Airport Ltd
nnReal-time visibility of costs, progress
and performance was provided through
regular audits and cost verifications.
Early identification and reporting on
potential problems, together with
effective and targeted supply chain
collaboration, provided HAL with the
confidence to take action
nnOptimising investment: our systems,
culture, ‘can-do’ approach and flexibility
are fully aligned with safety, security
and sustainability goals
nnOperational readiness: a six-month
transition phase enabled a coordinated
programme of recruitment, training and
trials across all of HAL’s key operational
workstreams, as well as robust
performance monitoring of the many
stakeholders involved in the preparation
for opening and beyond
nnLessons captured will be applied during
the next five-year investment period;
we have been appointed as sole
provider of cost management,
commercial and project controls
services for this phase
Natural
resources

Our natural resources sector delivered a strong
performance this year, despite challenging
market conditions. The oil and gas sector
remained robust and global capital programmes
continued, but demand for commodities was
volatile, leading mining and metals companies to
reduce spend and focus on capital cost efficiency
within their existing programmes.
Despite these challenges, we were pleased to see the
business deliver nine percent revenue growth, up to
£77m. This was due to our focus on the development
of long-term client relationships and the diversity of
our business model.
We performed well across our more established markets,
including Latin America, North America, the UK, Europe,
Africa and Asia. New business opportunities drove
expansion in Alaska, Brazil, Norway, Mozambique,
New opportunities, new challenges
We are supporting an increasing number of projects in
remote and challenging locations, in regions with limited
infrastructure, such as Alaska and parts of Africa. The
scale of investment required, amidst rising costs and
tough market conditions, makes our clients’ ability to
effectively and efficiently set up and execute projects
and programmes even more crucial. Our growing global
footprint enables us to better respond and support our
clients through the mobilisation of capability and
services to these locations.
As an independent firm, we are uniquely positioned
to provide predictability through project control and
contract management expertise, with capability from
concept to close-out.
Looking ahead
The development of our global capability will be vital

£77m
Iraq and China. Our operations in Australia and over the next five years. The cyclical nature of the
South Africa were the most affected by the downturn, natural resources market will be influenced by socio-
because of our significant mining and metals presence political pressures impacting on supply and demand.
in these markets. New and more robust solutions will be required to tackle
In the energy sector, growth was led by new liquefied challenging major programmes and inform investment
revenue decisions, particularly for mining and metals clients
natural gas (LNG) projects, an area which continues to
09/10 £25m provide opportunities. We are for example currently as the market returns, and for oil and gas clients in
10/11 £36m involved in eight of the 11 LNG plants under logistically challenging locations.
11/12 £59m construction globally, with several more in the planning Our vision is to strengthen our proposition for more
12/13 £70m and development phase. We continue to provide effective and efficient capital spend. We will continue
13/14 £77m services to the floating LNG industry and have to build our capability and enhance our support to
supported six projects to date. programmes by a renewed emphasis on technology,

9%
We secured a number of new upstream, offshore and tools, and the intelligent application of data.
deep water projects, particularly in the US, UK, Norway
and Asia, and increased our services on downstream
programmes, including petrochemicals and refineries
in the US, Africa, China and Australia.
growth Opportunities in strong commodities such as copper,
Natural particularly across Latin America, compensated for
resources
the downturn in gold, platinum and coal. Iron ore
24% expansion programmes continued to be a source
of strong revenue.
48%

28%
A notable highlight was the wider application of our
Property
QuanTTum service, which provides a fast, consistent
and accurate process of measuring and managing the
quantity, weight and cost of engineered facilities, as well
as the impact of design changes at any stage of the
Infrastructure
project lifecycle.

Turner & Townsend Annual review 2013 – 2014 27

Natural resources
A commercial As global markets begin to pick up,
operators developing new LNG production
eye on costs facilities are facing the dual challenges of
for the INPEX- escalating costs and the pressure this has
on their supply chain. Getting the costs
operated Ichthys
LNG Project
right pre-sanction and then keeping to
budget and schedule in delivery are
more vital than ever.
Following on from our involvement during
the pre-sanction phase, we were again
selected by oil and gas company INPEX
to provide quantity and progress
verification for the fabrication and
installation works of some of the most
advanced LNG processing facilities in the
world. The £21.2bn Ichthys LNG project
includes some of the industry’s biggest
offshore facilities, massive onshore
processing facilities near Darwin, Australia
and an 889km pipeline to unite them.
When operational, the project is expected
to produce 8.4 million tonnes of LNG and
1.6 million tonnes of LPG per annum,
along with approximately 100,000 barrels
of condensate per day at peak. First
production is scheduled for the end
of 2016.
Making the difference:
nnWe bring best practice and knowledge
from more than 30 comparable major
LNG projects that we have supported
around the world
nnContinuity of service, from pre-feasibility
right through to delivery, means we can
help our client to proactively manage
the potentially conflicting requirements
of cost, schedule and risk
nnOur footprint provides strong
commercial awareness and visibility
of supply chain performance in the
markets where fabrication is taking
place, including China, Thailand and
the Philippines
£21.2bn
cost of project
8.4 million
tonnes of LNG will be
produced annually
2006
our first involvement in
the project
Setting up for With volatility in commodity prices and
the need to preserve cash, the efficiency
success on the of capital spend continues to be a major
Tweefontein focus in mine developments. To that end,
speed of product to market must be
Optimisation
balanced with tight adherence to project
Project scope and cost.
Glencore Operations’ Tweefontein
Optimisation Project in South Africa is a
case in point. The programme, which will
extend the life of the mine, is centred on
new open-cut pits, a new coal-handling
plant and supporting rail infrastructure.
We supported the owner’s team in the
pre-implementation phase with cost
estimation, and in developing a contracting
strategy for the execution phase of the
programme.
Turner & Townsend Annual review 2013 – 2014 29
“Turner & Townsend is an
organisation that understands
our project controls
environment and has delivered
related services according to
our needs and expectations –
from the senior levels right
down to the delivery team.”
Riaan du Plooy
Projects Director,
Glencore Operations SA
£500m
cost of project
7.9 million
planned annual production of
saleable thermal coal in tonnes
8
year relationship
with Glencore
Making the difference:
nnOur flexible, multidisciplinary team was
mobilised early in the project to provide
a detailed analysis of procurement
options, leading to the allocation of
work packages according to risk
mitigation and best financial benefit
nnProject controls resources assisted with
the compilation of the project execution
documentation necessary for the final
approval of the project to proceed into
the execution phase
nnContinuous service: we are providing
quantity surveying and contract
administration services into the
construction phase
Our people

“Working for Turner & Townsend is about Since 2010 we have opened 24 new offices
being professional, working hard and around the world, grown headcount by 68 percent
and turnover by £141m. At the heart of this
putting the client first.”
success are our people.
They promote integrity and quality in everything we do:
Elizabeth Natukunda Mwebesa
East Africa Regional Representative, Kampala, Uganda in our relationships with clients and supply chains, in
our approach to environmental stewardship, in our
contribution to the communities in which we work
and in improving the performance of our industry.
We believe our culture gives us a competitive advantage,
helping attract the world’s leading companies as clients
and giving us the opportunity to work on some of the
most iconic and challenging projects and programmes
around the world today.
Our people care about delivering the best outcomes
they can for our clients. One of the strongest scores in
our employee engagement survey was that our people

3,660
Sam Cheng
are “happy to go the extra mile for Turner & Townsend”,
Director, Hong Kong
and through doing so they provide our clients with
exceptional service.
One of the things that motivates our people is a desire
A big challenge, as we continue to grow, is to nurture to improve our industry. Director Sam is one of the
staff and sustain the culture that has helped achieve our founding forces behind the green building movement in
success. To build on the momentum our people have Hong Kong and over the past decade has successfully
09/10 2,182
created, we must continue to engage and support them worked with fellow professionals to advance the
10/11 2,342 Government agenda.
with the right opportunities to develop and build their
11/12 2,781
careers, along with effective governance, processes “A few years back, there was very little knowledge about
12/13 3,239 green issues, but as a group of professionals, we knew it
and tools.
13/14 3,660 was our responsibility to take the lead,” says Sam. “We
Opportunities for our people have been learning from each other over the last ten
We give our people the support, training, incentives and years and now have secured strong support from the

13%
rewards they need to excel. With offices and projects Hong Kong Government.”
across many sectors and locations, we provide
opportunities for people to develop experience and
skills, which in turn supports our clients, wherever
they are in the world. And as people such as Uganda’s
growth
Elizabeth Natukunda Mwebesa (pictured left) take their
expertise to new regions, they also carry with them our
culture and values.
Attracting new talent is integral to our growth strategy.
This year saw our largest ever graduate intake, and
our new apprenticeship scheme, which was piloted
in the UK, is giving individuals like Amie Bailey
(see page 32) valuable site experience on major
projects such as the redevelopment of London’s
Tottenham Court Road station.

Elizabeth Natukunda Mwebesa

Turner & Townsend Annual review 2013 – 2014 31

Our people
Amie Bailey
Trainee Assistant Cost Manager, London, UK
Our continued success depends on finding and
developing our next generation of talent, and sometimes
that means looking outside of graduate programmes.
Some young people, like apprentice cost manager
Amie Bailey, thrive on learning in a work environment.
“I’ve wanted to be a cost manager since I was at school,
but university really didn’t appeal to me,” says Amie.
“Before I joined Turner & Townsend’s apprentice scheme
I was enjoying working for a local contractor. I wanted
the opportunity to progress and learn more, and a big,
diverse company like Turner & Townsend seemed a good
fit. I’ve already had the opportunity to work on some
amazing projects.”
66
nationalities
82
languages
32
As global markets begin to pick up, we are working to
retain and develop our talent. In addition to the staffing
costs of training, we continued to invest in the delivery
of formal training and development programmes.
Globally, our Your Professional Future network gives
graduates extra support and an opportunity to build
their professional network. The Chairman’s Group
brings together a cross-section of exceptional people
from every region to generate innovative responses to
rapidly changing market trends. We continue to invest
in our future leaders through our Senior Leadership
and Management Development programmes.
Strength in diversity
Diversity is another area of strategic focus. As a global
business, we naturally employ a wide range of people
– we currently have 66 nationalities on board, and
speak 82 different languages.
The range of perspectives that come from people’s
differences fosters creativity and success for us and our
clients. We are working to harness this opportunity by
developing leadership, cultural awareness programmes,
employee knowledge exchange networks and robust
policies, systems and processes.
In 2013 – 2014 we delivered diversity training to all of
our UK directors, with workshops to explain diversity
issues and explore how we can all have unconscious
bias that impacts on personal and business
performance. We will now roll this training out across
our global teams.
Gender diversity is a challenge for our industry, and one
that we are committed to tackling both in our business
and more broadly. Globally, 31 percent of our employees
are women, and the future looks positive – in 2014, over
40 percent of our graduate intake in the UK will be
women, building on previous years.
Making connections
For Turner & Townsend, innovation isn’t about that one
big idea, it’s about making connections: between our
people, between projects and across different industries.
Hands-on knowledge of processes and techniques
moves between projects and regions, leading to
better solutions, which bring greater efficiencies and,
ultimately, better value for our clients.
Our connections extend beyond our business to our
clients and the wider industry. We established the
Performance Forum, for example, which now brings
together 25 of the world’s leading upstream oil and gas
operators in order to optimise cost performance across
the whole industry.
This year we set up our Major Programmes Advisory
Group, a mobile team of specialists who connect our
clients with global best practice and ensure a consistently
Jason Jones
high level of service on every major programme we
Director, Leeds, UK
support. We are also working to improve the performance
of major programmes, investing in a ground-breaking
With 20 years’ experience in utilities, Director Jason
study that examines what makes them successful.
Jones has in-depth knowledge of asset optimisation.
Titled ‘Decoding the DNA’, the study analyses a broad So when a global banking client needed assistance to
sample of major programmes and the findings are now prioritise its capital spend, Jason was well placed to help.
publicly available.
“More than 30 years of pressure from regulators has
We continue to encourage cross-sector learning, with forced sectors like water and power distribution to find
people such as Director Jason Jones (pictured right) ways of delivering and managing their assets in the
most cost-effective way,” says Jason. “Now commercial
working with our property clients to develop and deploy
companies are facing the same challenges and we are
asset optimisation principles honed during our 20 years
bringing proven best practice and expertise, established
in the water sector. through our decades of work with the major utilities
To strengthen and support our connections around companies, to help them achieve a step change in capital
efficiency to help them deliver more for less.”
the world, we have been investing in technology and
solutions. One example of this is QuanTTum, a bespoke
tool for the oil and gas sector which helps with change
and cost control by providing real-time adjustments to
quantity measurements as design changes are made.
Turner & Townsend Annual review 2013 – 2014 33
Our people
Monika Svarcova
National Systems Manager, Brisbane, Australia
There are lots of good reasons to tackle our own
environmental impact: shaping a better built
environment for future generations, inspiring our people,
demonstrating our value to clients. All these factors
motivated National Systems Manager Monika to kick-
start energy and resource-saving initiatives in Australia.
“As providers of sustainability consultancy services, it’s
really important that we lead by example,” says Monika.
“I want to make a real difference; and that goes beyond
day-to-day work activities, it’s also about raising
awareness among staff to create sustained change.”
3,405
hours volunteered
34
The bigger picture
As champions of lean and efficient solutions, we already
play a strong role in environmental stewardship through
the services we provide and the influence we have on
new and existing assets.
Through encouraging a whole-life value approach, we
bring benefit to our clients and the environment. For
example, we worked with the London Borough of Brent
to achieve a BREEAM Outstanding rating for its new
civic centre, which became the greenest public building
in the UK, reducing energy consumption by 50 percent.
We also want to minimise our own environmental impact.
In Australia, for example, National Systems Manager
Monika Svarcova (pictured left) is spearheading
environmental initiatives. Our offices there have signed
up to energy efficiency programme, CitySwitch,
to identify further opportunities to improve our
environmental impact.
We aim to influence industry through our involvement in
professional bodies and initiatives. Director Sam Cheng
(pictured page 31) is a driving force in the Hong Kong
Green Building Council, and in 2013 we became a
Goldleaf member of the UK Green Building Councils.
In South Africa, we worked on the creation of the
South African Green Building Handbook.
Delivering community value
We are committed to adding value to our local
communities, through employing local people,
supporting local economies, building long-term
community projects, donating pro bono services
and volunteering. Our goal is to further increase
the investment we make in communities in the
next 12 months.
In 2013 – 2014 we contributed 18 percent more
volunteer hours to local communities than we did the
year before. We encourage every employee to give one
work day to a community activity and November 2013
saw our first Community Week, encouraging people
to participate in activities around the world. Our target
for 2014 – 2015 is to increase participation in volunteer
activities, to achieve 5,000 volunteer hours invested
in communities.
“As champions of lean and efficient
solutions, we already play a strong role
in environmental stewardship through
the services we provide and the influence
we have on new and existing assets.”
Looking ahead, our goal is to encourage more skills-
based volunteering and pro bono activities. Recent
successes in this area include our Toronto office, where
Project Manager Scott Anttonen (pictured right) and our
team there provided no-fee cost estimation and project
management services for the development of a Hospice
Palliative Care Wing for St Joseph’s Care Group Hospital
in Thunder Bay, Ontario.
We also want to work more directly with our clients on
Scott Anttonen
their community initiatives. Our goal is to be a strong
Project Manager, Ontario, Canada
supply chain partner that can contribute to their
community-based objectives, adding even more value.
Pro bono projects are our opportunity to use our
Our people and our culture are at the heart of our professional skills to create real community value.
Project manager Scott worked with St Joseph’s Care
success, and they will remain our focus as we expand
Group Hospital in Thunder Bay, Ontario on a project to
our global footprint even further.
update their Hospice Palliative Care wing. With help
As we build our platform for future growth, we will from the Toronto office, he provided cost and project
continue to invest in our people, in our systems, in management services.
improving our environmental performance and in the “We were aware that every dollar spent on construction
communities in which we work. It is only by continuing was a dollar that couldn’t be spent on supporting the
hospital’s mission, so there was a lot of focus on
to be a great place to work and inspiring our people
providing value-added solutions,” says Scott. “This was
that we can make the difference for our clients.
a rewarding project to work on because it’s something
that so many people in the community will benefit from.”
Corporate social
responsibility
report
2013-2014
Our approach to corporate
social responsibility is outlined,
along with our performance, in
our annual CSR report.
Read our CSR report
2013 – 2014
Turner & Townsend Annual review 2013 – 2014 35
Our leadership The Executive Board

“On behalf of the Board, I would like to
thank our management and staff for
their commitment, focus and hard work
over the year.”
Tim Wray
Chairman
The Executive Board is responsible for the Board structure
development and management of our overall
strategic direction, ensuring the company
continues to deliver sustainable value over
the long term. Turner & Townsend plc
Its members are the guardians of the Turner &
Townsend brand, its reputation and stakeholder
relationships. Protecting the business from operational
and reputational risk is also an essential part of their
role. Pages 40-41 set out our approach to risk
management, including key priorities for 2014 – 2015.
Our Executive Board consists of a Chairman, a Executive
Executive Audit
Chief Executive Officer, a Chief Operating Officer, Remuneration
Board Committee
Committee
an Executive Director, a Finance Director, and
one independent Non-Executive Director. Details of
the individual members and their key achievements
are on pages 38 and 39.
The Executive Board is supported by a Management
Board, which develops and implements our business
strategy and is responsible for resource allocation, Support
Management Operations
service improvement and business development. Services
Board Board
Committee
The Management Board controls and reviews the
operational performance of each of our eight regional
businesses, which are in turn managed by regional
boards (North America, Latin America, UK, Europe,
Africa, Middle East, Asia and Australia).
Operational reviews take place at least four times a
year, attended by members of the Management Board,
regional managing directors and other senior managers.
These reviews cover development and integration of
services, business development and infrastructure
requirements, and provide a forum for sharing success
and best practice. With the support of our people
worldwide, the Executive Board works to ensure
a successful future for Turner & Townsend.

Turner & Townsend Annual review 2013 – 2014 37

Executive Board
Tim Wray
Chairman
Tim joined the company in 1971 and became Chairman
in 1999.
A Chartered Surveyor, he was responsible for building our
first overseas business in South Africa, where he lived for
many years, and our subsequent overseas expansion.
From his appointment to the Executive Board in 1994
he has seen turnover grow by more than £330m. He was
also instrumental in the change that saw the business
transition from a partnership into a PLC in 2008.
Tim chairs the Executive Board and Remuneration Committee
and champions the Chairman’s Group, a staff network that
encourages innovation. He is a passionate supporter of
corporate social responsibility and leads the CSR Committee.
Vincent Clancy
Chief Executive Officer
Vincent joined Turner & Townsend in 1989 and was appointed
to the Executive Board in 2002.
He has set the strategic direction of the business as Chief
Executive Officer since 2008. In that time he has overseen
a period of steady growth and global diversification, growing
turnover by nearly 70 percent and headcount by 52 percent
to 3,660 people across 36 countries. A Chartered Quantity
Surveyor by trade, he has in-depth experience of the set-up,
procurement and delivery of some of the industry’s most
complex major programmes across property, infrastructure
and natural resources.
Vincent takes an active and leading role in the strategic
direction of the business, taking part in all Regional Boards,
the Management Board, Investment Committee and Major
Programmes Board.
Tom Harrison
Chief Operating Officer
Tom started his career at Turner & Townsend in 1974, joined
the Board in 1995 and was appointed Chief Operating Officer
in 2008.
Tom’s background is in construction consultancy, both project
and cost management. His experience has covered most
aspects of the business through its formative years –
specialising in direct inward investment, leading key global
accounts on Nissan and Siemens and as Managing Director
of the UK, the Middle East and International operations.
He currently chairs the Risk, Health and Safety and IT
Committees and is responsible for delivery quality.
38
Jeremy Lathom-Sharp
Finance Director
Jeremy joined the company and Executive Board in 2000.
He is a qualified Chartered Accountant with extensive
corporate finance experience across the professional services
and engineering industries. His deep expertise in mergers and
acquisitions has enabled him to successfully lead the company
through the milestones that helped form the group as it
stands today.
Jeremy is responsible for the financial management of the
group, including strategic and financial planning and control,
and heads up the global finance support service.
Jon White
Managing Director, Europe
Jon joined the company in 1997 and the Executive Board
in 2010.
He is a Chartered Civil Engineer, and began his career as a
Graduate Engineer for a major UK contractor before moving
into project management. He was responsible for leading our
London project management team, achieving a 40 percent
year-on-year growth in headcount, and later for leading our
project management division across the UK. Jon was
appointed as Managing Director for Europe in 2007, where
he established eleven new offices, pushing into new markets
such as Norway, Switzerland, Poland, Kazakhstan and Russia.
Jon is also a Chartered Director and chairs the Knowledge
Management Committee.
Gordon Horsfield
Non-Executive Director
Gordon joined the Executive Board as our first Non-Executive
Director in 2008.
A Chartered Accountant and Company Director, Gordon is a
former Director of Operations at PwC. He served as Executive
Chairman of Drax Group from 2003, after leading the company
to a listing on the London Stock Exchange, and as Non-
Executive Chairman from 2006.
He has worked in a variety of industrial and service businesses
and has regularly engaged in not-for-profit and community
activities. He was formerly Chair of the Council of the
University of York, from which he holds an honorary doctorate.
Gordon chairs our Audit Committee and is a member of the
Remuneration Committee.
Turner & Townsend Annual review 2013 – 2014 39
Risk management
The following table summarises the principal risks that Turner & Townsend currently faces and the main mitigation measures in
place to address them. These risks are closely monitored by the Executive Board, and will continue to be the primary focus of our
risk management strategy in 2014 – 2015.

Risk Mitigation Change from

2012 – 2013

Business environment

The Executive Board has overall accountability
for ensuring that corporate governance and risk
are managed effectively.
Each of our eight regions is responsible for identifying,
assessing and managing day-to-day risks, and the Risk
Committee is responsible for developing a comprehensive
governance framework.
Achievements this year
While 2013 – 2014 has presented many challenges,
key developments included:
nnthe publication of our Enterprise Risk Management
Strategy, and improvements to our risk management
framework, risk appetite plan and reporting
nna significant review and update of our corporate
governance procedures
nnreinforcing our risk management culture, further
embedding appropriate conduct at the heart of the
business and the services we provide
nnstrengthening our global teams in the selection,
recruitment, training and retention of people
nnincreased investment in operational and corporate
systems
Growing challenges
At the same time, the continuing global expansion
of the business has increased our exposure to macro
nnIT security and data fraud: the growing threat to
IT security and the potential for data fraud requires
constant vigilance to protect against business
disruption and reputational damage.
nnThird-party involvement with clients: we need
to be careful that third parties, who are not party to
our contracts with clients, cannot claim reliance on
reports or information we produce.
nnNatural disasters and climate extremes: while
effects can be mitigated, major disasters inevitably
impact on both people and the business.
nnOperational site health and safety: across the
industry, injuries and fatalities on construction sites
are increasing. Our health and safety record remains
good and we are focused on ensuring that this
continues through awareness-raising activities
and training.
Emerging risks
Uncertain
Adverse or uncertain economic conditions that may
impact the volume of work available in markets or
specific sectors.
Failure to convert opportunities.
Strategic
Resourcing and retention: not filling management
gaps; capacity of existing resource to meet demand;
and retaining valued and experienced people.
We are seeing market recovery across a number
of regions, which is leading to increased
competition to source talented people and
pressure to retain staff.
Financial
Variances between financial targets and those
achieved.
Operational
Loss of key programmes or frameworks as they
expire or complete.
Increasing competition in the marketplace is
making it harder to retain programmes and
nndiversity across markets, sectors and services
nnmonitor changes in economic environments
and manage, where possible, impacts in
relevant markets
nndevelop and sell appropriate services
nnredeploy resource
nnrobust business planning
nnbrand building
nncross-selling
nnsolutions-based approaches to service offering
nninvestment in internal recruitment system and
resourcing team
nnglobal mobility model developed
nnmore focused performance review process
nnenhanced learning and development
nnvaluing our people
nnbusiness performance monitored
nnrecovery strategies developed
nncontinuous dialogue with clients
nnadapting and investing in services, skills and
service models to align with client needs
nncontinued implementation of our assurance
model, including client satisfaction and service

risks, including: frameworks due to competitors reducing costs to

review programmes
unhealthy levels and the prevalence of cost only
nnSecurity: remote and challenging site locations in criteria informing procurement decisions.
7 4
high-risk countries come with the associated risk of
hostage-taking, kidnapping, explosions and threats New acquisitions. nngreater due diligence, particularly on the
to people. We work closely with our clients to decide 2 operational aspects
nnknowledge sharing
Likelihood

where to locate people, how best to maintain their

nnsystems integration
safety, and how to monitor and manage heightened nninteraction of people with each new entity
states of alert. 3
1
nnSanctions: political sanctions create challenges in Compliance
both sanctioned countries and in those imposing 6 Non-compliance with business regulations, nnretention and use of regional advisors
them and due to the fact that the sanctions list international sanctions against specific countries nntraining
differs from country to country. We undertake or individuals, and breaches of regulatory laws by nnreinforced culture of good governance
Certain

checks to confirm where sanctions have been 5 individual employees. nnupdated procedures and plans in the event,
imposed to ensure that we comply. or possibility, of non-compliance
Increasing and differing legislation in the countries
nnRegulatory compliance: operating as a global < 6 months Time Uncertain we operate in make this a complex area to manage.
business requires us to comply with the regulations,
Reputational
codes of conduct and rules (such as anti-bribery and 1 Security
High impact
corruption and anti-money laundering legislation) 2 Sanctions Loss of key clients or programmes of work. nncontinuous dialogue with clients
applicable in each country. 3 Regulatory compliance nnkey account management
Medium impact
4 IT security/data nncore skills training
nncontinued implementation of our assurance
5 Third party involvement
Low impact model, including client satisfaction and service
6 Natural disasters and
review programmes
climates extremes
7 Operational health and safety

40 Turner & Townsend Annual review 2013 – 2014 41

 “Our financial performance in
the year to 30 April 2014 has
again been very strong with
the results showing significant
revenue growth, margin
improvement and excellent
cash generation.”
Jeremy Lathom-Sharp
Finance Director
Finance
Our financial performance in the year to 30 April
2014 has again been very strong with the results
Director’s
showing significant revenue growth, margin
improvement and excellent cash generation.
report
Basis of preparation
The financial results set out on pages 44 to 51 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 measure of revenue, net revenue,
was £322.2m (2012 – 2013: £286.3m), representing
12.5 percent growth over the prior year. Our turnover
(which includes subcontract revenue) was £357.4m
(2012 – 2013: £318.5m).
Net revenue in the UK achieved growth of 11.4 percent
over the prior year, and revenue from outside the UK
grew by 13.5 percent.
42
Revenue growth was particularly strong in North
America (29.7 percent), the Middle East (45.6 percent)
and Asia (33.2 percent). Non-UK revenue represented
54 percent of consolidated revenue.
EBITA of £34.0m compares with £30.1m for the prior
year, and EBITA margin has improved to 10.6 percent
(2012 – 2013: 10.5 percent). This margin improvement
maintains the trend of recent years and reflects the
impact of growing scale in the non-UK regions. For
the second year running our largest seven regions
all achieved EBITA in excess of £1m.
Taxation
The taxation charge for the financial year was £8.4m
(2012 – 2013: £8.5m), representing an effective rate of
25.2 percent (2012 – 2013: 28.7 percent). The effective
rate reflects the global nature of our business and the
impact of varying tax rates across different jurisdictions.
The reduction in the effective rate over the prior year
primarily reflects the reduction in the UK statutory
rate and the growth of our Middle East region business.
Cash flow and working capital
Cash generation has once again been maintained at
a strong level throughout the financial year, reflecting
the level of attention placed on working capital
management by the business. This resulted in free
cash flow of £26.0m (2012 – 2013: £17.6m), and cash
generation – defined as operating cash flow as a
percentage of EBITDA – of 105 percent (2012 – 2013:
92 percent).
Trade debtors continue to run at historic levels,
proportionate to revenue. Debtor days at the year end
were 54 (2012 – 2013: 55), and for the tenth year
running our average of 59 (2012 – 2013: 59) debtor
days across the 12 accounting periods was less than 60.
Working capital management continues to be a key
discipline across our business. As our geographic reach
has extended, significant attention has been placed on
establishing appropriate working capital management
behaviour in all territories, and this has been key to
maintaining our strong cash flow performance.
Funding
Cash, net of overdrafts, was £35.1m at 30 April 2014
(2012 – 2013: £26.5m). Net funds, including £9.8m
of mostly non-interest bearing long-dated loans
from shareholders, were £19.4m at the year end
(2012 – 2013: £11.2m).
Bank facilities were renewed in February 2012. This
provided Turner & Townsend with five-year committed
undrawn facilities to finance future operational cash
requirements and selective acquisitions, in line with
our strategic aims.
Pensions
Turner & Townsend operates a number of pension
schemes across the global business. Additionally, the
business maintains one closed defined benefit scheme
arising from the UK business. This scheme was closed
to new members in 1992 and to future accrual in 2006.
At 30 April 2014 the IAS19 deficit was £6.3m (2012 –
2013: £6.3m).
Treasury
The treasury risks faced by Turner & Townsend include
interest rate risk, foreign exchange risk, credit risk and
liquidity risk. Instruments such as interest rate swaps
have not been entered into to mitigate risk as these
risks are considered to be low.
A two percent increase to the cost of external finance
would not have a material impact on profit before tax.
Contracts are mostly undertaken in the currency of local
subsidiaries, and therefore foreign currency revenue
streams are matched by the currency of the relevant
cost base.
Jeremy Lathom-Sharp
Finance Director
Turner & Townsend Annual review 2013 – 2014 43
Financial results

Consolidated income statement Consolidated statement of comprehensive income

Year ended 30 April 2014 2013 Year ended 30 April 2014 2013
£000 £000 £000 £000
Continuing operations Foreign currency translation differences (4,647) 625
Turnover 357,433 318,462 Remeasurement of defined benefit pension liability (963) (252)
Sub-contract costs (35,232) (32,159) Deferred tax 147 7
Net revenue 322,201 286,303
Income and expense recognised directly in equity (5,463) 380
Staff costs (230,877) (202,044) Profit for the financial year 24,894 21,199
Other direct expenses (19,122) (18,388) Total comprehensive income for the financial year 19,431 21,579
Depreciation (2,911) (2,802)
Other operating charges (35,411) (33,063) Total comprehensive income attributable to:
Operating profit 33,880 30,006 Owners of the company 19,004 20,998
Non-controlling interests 427 581
Analysed as: 19,431 21,579
Operating profit before amortisation 34,005 30,103
Amortisation (125) (97)
Operating profit 33,880 30,006

Finance income 306 451

Finance expense (883) (718)
Net finance expense (577) (267)

Profit before taxation 33,303 29,739

Corporation tax expense (8,409) (8,540)
Retained profit for the financial year 24,894 21,199

Profit attributable to:

Owners of the company 24,359 20,635
Non-controlling interests 535 564
24,894 21,199

44 Turner & Townsend Annual review 2013 – 2014 45

Financial results

Consolidated statement of financial position Consolidated cash flow statement

As at 30 April 2014 2013 Year ended 30 April 2014 2013

£000 £000 £000 £000
ASSETS Cash flows from operating activities
Non-current assets Profit after tax 24,894 21,199
Property, plant and equipment 10,719 9,645 Depreciation and amortisation 3,036 2,899
Intangible assets 14,448 14,769 Excess of pension contributions over service cost (1,182) (1,182)
Deferred tax assets 2,245 2,362 Net finance expense 577 267
Total non-current assets 27,412 26,776 Corporation tax expense 8,409 8,540
Increase in trade and other payables 8,607 4,627
Current assets Increase in trade and other receivables (5,635) (5,935)
Trade and other receivables 77,209 71,918 Cash generated from operations 38,706 30,415
Cash and cash equivalents 35,052 26,523 Interest paid (612) (631)
Total current assets 112,261 98,441 Corporation tax paid (7,691) (8,563)
Net cash inflow from operating activities 30,403 21,221
TOTAL ASSETS 139,673 125,217
Cash flows from investing activities
LIABILITIES Interest received 306 451
Current liabilities Proceeds from sale of property, plant and equipment 221 189
Borrowings (5,309) (561) Acquisition of subsidiary undertakings (709) (3,588)
Trade and other payables (70,368) (63,822) Purchases of property, plant and equipment (4,171) (3,408)
Current tax liabilities (1,714) (1,130) Net cash used in investing activities (4,353) (6,356)
Amounts due to shareholders (701) (1,627)
Total current liabilities (78,092) (67,140) Cash flows from financing activities
Repayment of finance leases (740) (830)
Non-current liabilities Shareholder loan repayments (3,138) (6,042)
Borrowings (478) (5,589) Dividends paid (10,756) (6,751)
Amounts due to shareholders (9,125) (7,532) Dividends paid to non-controlling interests (509) (383)
Pensions liability (6,292) (6,281) Purchase of own shares (272) (505)
Total non-current liabilities (15,895) (19,402) Net cash used in financing activities (15,415) (14,511)

TOTAL LIABILITIES (93,987) (86,542) Net increase in cash and cash equivalents 10,635 354
Cash and cash equivalents at beginning of year 26,523 25,966
NET ASSETS 45,686 38,675 Effect of exchange rate fluctuations on cash held (2,106) 203
Cash and cash equivalents at end of year 35,052 26,523
EQUITY
Share capital 70 70
Share premium 3,959 610
Other reserves (1,542) 3,469
Retained earnings 41,459 32,704
Total equity attributable to the equity holders of the company 43,946 36,853
Non-controlling interests 1,740 1,822
TOTAL EQUITY 45,686 38,675

46 Turner & Townsend Annual review 2013 – 2014 47

Financial results

Cash and cash equivalents Revenue

As at 30 April 2014 2013 Sub-

£000 £000 North Latin Middle Net contract
UK America America Europe Africa East Asia Australia revenue revenue Turnover
Cash and cash equivalents include the following
for the purpose of the cash flow statement: Year
ended
Cash at bank and in hand 35,052 26,523
30 April £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Bank overdraft – –
35,052 26,523
2014 148,176 56,001 5,345 27,611 14,876 17,948 25,708 26,536 322,201 35,232 357,433
2013 132,988 43,183 5,996 25,361 16,985 12,327 19,302 30,161 286,303 32,159 318,462
Turner & Townsend plc’s cash at bank and in hand
is denominated in the following currencies:
UK Pound 22,103 16,948 Operating profit
Chinese Yuan 2,872 2,126
US Dollar 2,289 717 North Latin Middle
Australian Dollar 1,233 1,486 UK America America Europe Africa East Asia Australia Sub total Eliminations Total

Chilean Peso 923 283 Year

ended
Indian Rupee 695 537
30 April £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
South African Rand 672 225
Euro 499 641
2014 16,524 6,526 280 2,779 1,814 1,806 1,549 2,727 34,005 – 34,005
Singapore Dollar 432 347
2013 14,816 5,029 685 1,857 2,248 1,026 1,363 3,079 30,103 – 30,103
Qatari Rial 152 711
Figures are stated before amortisation.
United Arab Emirates Dirham 116 1,352
Other currencies 3,066 1,150
35,052 26,523 Total assets

North Latin Middle

UK America America Europe Africa East Asia Australia Sub total Eliminations Total
As at
30 April £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000

2014 101,814 18,690 3,496 17,889 6,664 6,088 13,858 6,455 174,954 (35,281) 139,673
2013 91,781 17,789 2,762 15,292 5,465 5,598 12,639 7,136 158,462 (33,245) 125,217

Net revenue by business sector

Year ended 30 April 2014 2013

£000 £000
Property 154,149 140,882
Infrastructure 91,329 75,286
Natural resources 76,723 70,135
Total net revenue 322,201 286,303

48 Turner & Townsend Annual review 2013 – 2014 49

Financial results

Taxation Consolidated income statement

Year ended 30 April 2014 2013 Year ended 30 April 2014 2013 2012 2011 2010
£000 £000 £000 £000 £000 £000 £000
Current tax 8,229 8,247
Deferred tax 180 293 Turnover 357,433 318,462 274,646 236,454 216,651
Total taxation expense 8,409 8,540
Sub-contract costs (35,232) (32,159) (30,299) (32,128) (25,037)
Net revenue 322,201 286,303 244,347 204,326 191,614
Trade and other receivables
Operating profit before amortisation and
As at 30 April 2014 2013 exceptional items 34,005 30,103 23,582 18,769 20,060
£000 £000
Amortisation (125) (97) (80) (65) –
Trade receivables – net 56,478 52,955
Exceptional items – – – (2,758) (1,832)
Other receivables 15,634 14,088
Unbilled amounts for client work 5,097 4,875
Operating profit 33,880 30,006 23,502 15,946 18,228
77,209 71,918
Net finance expense (577) (267) (497) (228) (477)
Profit before taxation 33,303 29,739 23,005 15,718 17,751
Trade and other payables
Consolidated statement of financial position
As at 30 April 2014 2013
£000 £000
As at 30 April 2014 2013 2012 2011 2010
Trade payables 5,467 4,988
£000 £000 £000 £000 £000
Accrued expenses and other creditors 50,261 44,263
Intangible assets 14,448 14,769 10,185 8,803 8,945
Progress billings for client work 14,640 14,571
Property, plant and equipment 10,719 9,645 8,354 7,425 8,101
70,368 63,822
Deferred tax assets 2,245 2,362 2,637 2,048 2,353
Current assets 112,261 98,441 90,133 76,893 67,556
Total assets 139,673 125,217 111,309 95,169 86,955

Current liabilities (78,092) (67,140) (62,739) (54,551) (50,295)

Total assets less current liabilities 61,581 58,077 48,570 40,618 36,660

Non-current liabilities (15,895) (19,402) (24,933) (16,519) (17,093)

Net assets 45,686 38,675 23,637 24,099 19,567

Equity
Share capital 70 70 70 70 70
Share premium 3,959 610 – – –
Other reserves (1,542) 3,469 2,861 3,793 4,285
Retained earnings 41,459 32,704 19,485 19,897 15,161
Total shareholders’ equity 43,946 36,853 22,416 23,760 19,516

Non-controlling interests 1,740 1,822 1,221 339 51

Total equity 45,686 38,675 23,637 24,099 19,567

Year ended 30 April 2014 2013 2012 2011 2010

Average number of full time equivalent staff 3,430 2,991 2,484 2,250 2,176
Number of staff employed at 30 April 3,660 3,239 2,781 2,342 2,182

50 Turner & Townsend Annual review 2013 – 2014 51

Offices

North America Europe Asia

Calgary Amsterdam Bangalore
Chicago Atyrau Beijing
Denver Basel Ho Chi Minh City
Edmonton Berlin Hong Kong
Houston Dublin Jakarta
Los Angeles Frankfurt Kuala Lumpur
Nashville Hamburg Macau
New York Krakow Mumbai
Ottawa Madrid New Delhi
Phoenix Milan Seoul
San Francisco Moscow Shanghai
Seattle Munich Shenzhen
Toronto Paris Singapore
Vancouver Rome Tianjin
St Petersburg Tokyo
Latin America Stavanger
Bogota The Hague Australia
Lima Vienna Adelaide
Rio de Janeiro Warsaw Brisbane
Santiago Waterford Cairns
São Paulo Canberra
Africa Gold Coast
UK Cape Town Melbourne
Aberdeen Durban Perth
Belfast Gaborone Sydney
Birmingham Harare Townsville
Bristol Johannesburg
Edinburgh Kampala
Glasgow Maputo
Leeds
London Middle East
Manchester Abu Dhabi
Newcastle Doha
Nottingham Dubai
Sheffield Muscat
Teesside

52