Delivering a Better World

NATURAL CAPITAL LABORATORY (NCL)

United Kingdom

Established in 2019 by AECOM, the NCL is a unique project focused on identifying, quantifying, and valuing the impacts of biodiversity and re-wilding. Located in the Scottish Highlands, near Loch Ness, for the next five years the NCL is restoring 100 acres of forest and reintroducing lost species. See page 16 for additional information.

2021 ANNUAL REPORT

Deliver

Collaborate

Innovate

OUR VISION

We believe infrastructure creates opportunity for everyone-uplifting communities, improving access and sustaining our planet.

By bringing together the best people, ideas, and technical expertise, we partner with clients to turn their ambitions into action, and we embrace our core values-Deliver, Collaborate, Innovate, Sustain, Thrive and Safeguard-in everything we do.

Sustain

Thrive

Safeguard

Troy Rudd

Chief Executive Officer

Dear Stockholders:

As we begin the new year, I want to especially thank and congratulate our people for all that we have accomplished together throughout fiscal 2021. Without the contributions and dedication of our global teams, we would not have accomplished what was an outstanding year. While the effects of COVID-19 continued to impact our lives and business, we remained agile and stayed focused on keeping our people safe and enabling them to be successful.

Against this backdrop, I could not be prouder of how we have supported one another throughout 2021 to collaborate and deliver for our clients, communities and stockholders.

We celebrated numerous accomplishments this year that underscore the strength of our firm, including the following highlights:

  • Our company's performance exceeded our expectations on every key financial metric for the year. We delivered accelerating organic net service revenue (NSR) growth, set new quarterly and annual records for margins, achieved double-digit earnings growth and had another year of strong free cash flow - all while increasing investments in our teams and innovation.
  • We launched our Think and Act Globally strategy to ensure we fully leverage collaboration throughout our business to bring the best of AECOM to each of our projects and gain greater market share with our clients. Encouragingly, we are seeing early proof points of success against this strategy with 18% contracted backlog growth in fiscal 2021, as well as 5% growth in total backlog within our design business.
  • Reflecting our leading position for ESG-related services, we also launched our Sustainable Legacies strategy that integrates four key pillars to embed sustainable development and resilience across our work, improve social outcomes for communities, achieve net zero carbon emissions at AECOM and enhance our governance.
  • Importantly, we continued to deliver for our clients and for our professionals - our client satisfaction scores achieved a record high in the year and employee engagement across our firm remains strong. In fact, in an employee survey conducted in September, 70% of our employees responded that they would recommend AECOM as a great place to work, far exceeding industry benchmarks.

These accomplishments have contributed to our ability to create value for our stockholders. During the year, we repurchased nearly $1 billion of stock, which reduced our shares outstanding by approximately 12%. While our stock price is not the only measure of our success, I am nonetheless pleased to see AECOM set new all-time highs during the year and outperform all major market indices by double digits.

As we look ahead, an improved funding environment highlighted by the passing of the Infrastructure Investment and Jobs

Act in the U.S. and accelerating global investments in ESG- related initiatives is increasing demand for AECOM's technical, advisory and program management capabilities. As a leading Professional Services provider, including being the No. 1 transportation, facilities, and environmental engineering firm, as well as the No. 2 water design firm, as ranked by ENR, we are well positioned to capitalize on key growth opportunities across our markets and to deliver another year of excellent performance in fiscal 2022.

Taken together, we made substantial progress in fiscal 2021 and are better positioned than ever for long-term success. On behalf of all our nearly 50,000 professionals, I thank you for your shared commitment to and passion for delivering a better world.

Troy Rudd

Chief Executive Officer

AECOM-2021 Annual Report

1

Think and Act Globally

AECOM is at its best when we collaborate globally to bring our unrivaled expertise, capabilities and innovation to bear for each of our clients. This focus is at the heart of our Think and Act Globally strategy, launched in November 2020, which guides our teams and business in achieving our strategic objectives and setting new standards of excellence in the professional services industry.

Industry-Leading Value Creation

Through the execution of our strategy, we expect to create significant value for our employees, clients and shareholders, including through the achievement of our long-term fiscal 2024 financial targets:

Adjusted1 EPS

Free Cash Flow2

+120%+100%

$4.75+$680M+

$2.15$341M

FY '20

FY '24E

FY '20

FY '24E

2

Our strategy comprises four main pillars:

1 Investing in our people

2 Transforming how we work

Our people are our greatest asset as a Professional Services organization, and we have invested in their success and momentum this past year. Through key initiatives across our company, we have prioritized equity, diversity and inclusion so our teams reflect the diversity of the clients and communities we serve, implemented our Freedom to Grow flexible work policy and continued to enable new ways of working through digital solutions and redesigned office spaces.

In the last year, we have simplified our operating structure with clearer lines of accountability, which deploys the best global thinking and innovation on every project and promotes greater connectivity and collaboration across our global regions and business lines.

Above all, we remain committed to making our company the best place to be in our industry where our professionals can grow meaningful careers with even more opportunity to help shape the future of infrastructure. We've advanced career development programs and have seen a continued high retention rate, especially among high performers.

We are transforming the way we deliver work through technology and digital platforms to improve client experience and increase efficiency. Our investments resulted in the launch of Digital AECOM this past November to help clients accelerate their digital journeys and achieve better project outcomes by leveraging more than 2,000 integrated digital practitioners globally. Through our digital consulting services and digital products, we are providing the integrated solutions our clients demand to help advance increasingly ambitious infrastructure and ESG-related initiatives.

As part of Digital AECOM, we have invested in innovation to bring new digital tools to market, such as those that improve public engagement on environmental reviews through our PlanEngage™ platform and help transit agencies hard-hit by COVID plan

for recovery through our Mobilitics for Pandemic Response platform. We also began demonstration programs and validated an addressable global market of over half a billion dollars for our proprietary DE-FLUORO™ technology to eliminate PFAS contamination.

3 Extending client relationships

4 Leading in ESG

We are driving growth by prioritizing our core markets, leaning into our greatest strengths, and ensuring our best talent and resources are focused on nurturing client relationships. With industry-leading franchises and the premier technical experts in the industry, we've focused our teams on fully leveraging our strengths to gain market share, grow in adjacent markets and build durable, long-term relationships with our clients, particularly in our top nine geographies that represent more than 90% of our firm's profitability.

By bringing together the best of AECOM through our global Program Management business, we created new potential- and captured significant wins-as the U.S., Canada, Australia and other governments advance billions of dollars in stimulus and infrastructure investment across markets where we have leadership.

This year we have won and worked on industry-leading projects both internationally and domestically, leveraging the collaboration of our global business lines with our regional teams and business groups. Some highlights include advancing $2.2 billion in terminal upgrades at John F. Kennedy Airport in New York, winning our fourth consecutive contract with the Dallas Independent School District to provide PM services for its $3.5-billion bond program, capturing a critical role on a $300 million flood mapping program with FEMA, winning a first-in-the-U.S. new energy wind port project and our selection to build the AECOM-designed Intuit Dome, the future home of the NBA's Los Angeles Clippers.

We are building upon our position as a leading ESG company through our Sustainable Legacies strategy, and we have committed to working toward a more sustainable and equitable future through our own operational commitments and by helping our clients achieve their bold ESG ambitions. We have set new, more ambitious emissions reduction targets, including our commitment to achieving science-based net zero by 2030, launched our Thrive with AECOM initiative to advance our commitment to Equity, Diversity and Inclusion (ED&I) and published our first ESG report that includes our disclosures aligned with the SASB and TCFD frameworks, reflecting our commitment to transparently communicate our progress on our sustainability objectives.

Commitment to achieving science-based

net zero

by 2030

Achieved operational

net zero

for fiscal 2021

AECOM-2021 Annual Report

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AECOM published this content on 20 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 January 2022 22:41:06 UTC.