Annual Report FY 2019-20

Annual Report | 2020

Annual Report 2019 - 2020 JLL-RBC partnership – One Team, One Vision

1

2020 Annual Report

Table of contents

Account Senior Leadership Team

3

Account Overview

5

Success Stories

8

2019-20 Joint Business Plan Scorecard

10

Integrated Facilities Management (IFM)

16

Lease Administration (LA)

19

Project Delivery Services (PDS)

21

Moves, Adds, Changes and Occupancy Planning

25

Sourcing & Supplier Management

29

Finance Accounting

32

US Overview

35

EMEA Overview

39

Human Experience

41

Onward and Upward…

45

Annual Report | 2020

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Account

Senior Leadership Team Steve Rawlin Global Account Executive

Stuart Ross

Nick Heibein

Paul Whelan

Global IFM Lead

Global Operations Officer

Global Projects Lead

Saurabh Sachdev

Michael Marano

Natalia Schetin

Global Lease Admin Lead

Global Sourcing Lead

Global Finance Lead

Lily Trieu

Rob O’Shea

Global HR Lead

Global OP/MAC Lead

Pamela Skogland

Adam Hill

U.S. Account Lead

EMEA Account Lead

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Welcome, Steve!

Steve Rawlin joined JLL Canada in October 2020 as the new Global Account Executive on the RBC Account, succeeding Tim McParlane.

Steve is a seasoned executive with experience in various areas of real estate management, including portfolio management, strategy, asset management, operations, project management, advisory and consulting.

Thank you, Tim! After nearly three years at the helm of the global RBC Account, Tim McParlane moved on to lead another global JLL account in United States. Our sincere thanks to Tim for his contribution to the RBC Account.

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Account Overview

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Account Overview

265.43

Headcount

519

23.4 MM Square feet RBC area managed

2500+

27,276

Help Desk call volume

Projects closed out

146,000+ Work orders

“As-built” drawings updated

21

2,633

Leases Managed

800M

Additional Guaranteed Savings

Major sourcing events

$930 MM

Rent Processed

~1MM

3000+

Under budget

People moved

~$800M

Lease Admin cost savings

$4.3MM

Savings for non-occupied spaces

Global Highlights Note: In line with RBC’s practices, thousands are represented as M and millions are represented as MM throughout this document.

The year 2020 was a landmark year in JLL’s relationship with Royal Bank of Canada (RBC). Chronologically, it marked the fifth anniversary of our successful association. More importantly, though, it was a year that saw unprecedented events like the Snowmageddon in Eastern Canada and the COVID pandemic which has changed the way business is done across the world.

•

Surpassed our Guaranteed Savings commitment by CA$800M, raising the total savings over the past three years to more than CA$2MM

•

Contained expenses almost CA$1MM under the budget cap of CA$30MM

•

Realized CA$4.3MM identified savings for non-occupied spaces and almost CA$800M in Lease Admin cost savings

While attending to these extraordinary circumstances on a war footing, we persisted in moving forward on our joint FOCIS plan laid out for the financial year 2019-2020. Thanks to the efforts of our exceptional teams, we were able to deliver strong BAU results in FY2019-20. Following are a few highlights:

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Successfully delivered branch formats against aggressive timelines, in line with CRE’s ongoing transformation goals

•

The Brentwood Project was finally launched last September after long negotiations which started way back in 2013. It is scheduled to be delivered in spring 2021

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> 2M over

Guaranteed savings

target last 3 years Annual guaranteed Cost savings

Pega, a lease administration tool, went live in December 2019 for Canada and US. As a comprehensive and unified platform, Pega provides greater efficiencies while reducing risks significantly

•

Our U.S. team provided quick support in the aftermath of wildfires and hurricanes in several locations

•

We obtained approval for FOUR Innovations and FOUR process improvements

•

As many as 670 Good Catch/Near Miss incidents were recorded between January and November 2020

•

We are managing 499 active projects with a project spend of $138MM

•

Phase IV of US compliance was completed and 73 new suppliers were added

•

Achieved 100% contract and supplier compliance.

•

Fully supported RBC’s One Team motto by successfully collaborating with other service partners to deliver a number of projects that were recognized with One Team Awards

•

Completed our HR Capability Matrix for implementation in 2021

•

Onboarded several key personnel virtually, including Steve Rawlin, our Global Account Executive

4 2 0

RBC Canada & US consolidated CAP in CA $000 $31,000

2016

2017

2018

2019

2020

Achieved

JLL expense CAP

$30,000 $29,000 $28,000

budget FY2020

$27,000 $26,000

< 1M under

$25,000 2016 2017 2018 2019 2020

Notable savings

•

8

Target

Target

The International Financial Reporting Standard IFRS 16 was successfully implemented for consistency across the board globally

10

6

$24,000

•

12

Actuals

Most importantly, though, we realized all of the above, and more, while dealing with unforeseeable situations like the Snowmageddon and the COVID pandemic.

“

“

Please pass along our appreciation for all of your efforts in 2020… a lot thrown at us but we have collectively worked through the challenges. Thanks again!

- Scott Foster, Senior Vice-President, Global Corporate Real Estate & Global Head, RBC

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Success Stories

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Success Stories

January 17, 2020 – Newfoundland, Canada, saw a monster storm wallop the east coast of the island and blanket it under a record-breaking 93 cm of snow with winds raging at 150 km/hr. Within 10 hours, a state of emergency was enacted and the army was called in. The Avalon Peninsula came to a grinding halt and the 250,000 residents of the region were told to stay inside. The island was completely shut down.

The storm affected 14 of the 19 RBC branches located in the region, including the Main Processing Plant for Newfoundland and Labrador. RBC’s main branch in St. John’s had over 4 feet of hard packed snow on the roof and in front of the main entrance.

JLL’s team, led by Angela Jackman, banded with our vendors to help everyone get back to work as soon as the state of emergency was lifted on January 26. They worked around the clock to clear the snow and ensure the sites were safe for our clients to return to work.

“

During our snowstorm today, Angela went above and beyond sending a detailed, one-page spreadsheet of all closures; this made it much easier for the Regional Operating Officer and Regional President to have a consolidated view of the region’s operational status— it was greatly appreciated and commented on.

“

JLL Battles the Snowmageddon

Michele Trider | Senior Manager, Physical Networks Delivery | Physical Networks & Distribution

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Success Stories

The COVID Challenge Early January 2020, as COVID-19 started spreading across the world, we began sharing communications, alerts and resources. By mid-March, the situation worsened to such an extent that lockdown orders were issued by several governments. RBC and JLL declared office closures and “work-from-home” arrangements across the globe.

JLL’s Integrated Facilities Management (IFM) team immediately channelized SEVEN workstreams to manage FM operations globally. They organized weekly “all hands” meetings across Canada and U.S.; exchanged communications with landlords; provided timely updates to all stakeholders; established cleaning / disinfection standards and protocols; supervised JLL’s trusted BIG FOUR janitorial partners: and carried out

regular site inspections for closure and re-entry.

Simultaneously, they worked with our Sourcing team and mobile technicians to procure PPE supplies (masks, gloves, hand sanitizers, etc.) to all RBC retail locations.

Starting May, they partnered with our Moves, Adds & Changes (MAC) and Occupancy Planning teams to design and implement re-entry protocols with floor layouts, physical distancing drawings, welcome packages, etc.

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Simultaneously, they created a Centre of Excellence (CoE) to manage operations models; centralize communications, escalations, training and change management; and ensure work orders are captured and executed in a timely manner.

Here’s a snapshot of the massive effort that went into managing the response to COVID-19:

Response

+700

1200/100

Re-Entry

350

Branches Remained Open

Branches/Floors Nightly Disinfection

Floors prep’d with PPE and Signage

150

4MM

34MM

Turkey Basters

Disposable gloves

380,000L Hand Sanitizer

7MM

Disinfecting Wipes

Disposable Masks

340

Floors re-opened since July

911

Floor plans completed as of October 31

60K

Safe usage decals globally

400+

Welcome packages in Canada

$565,000 Savings + Ongoing Operations Throughout

“

I would like to thank the MES team for their amazing work in supporting RBC during both the pandemic response phase and now through the return to premises. I am very appreciative of the flexibility shown by the team and for going above and beyond in addressing the business needs, whether it be supplying hand sanitizer from a local store during the height of the pandemic to installing physical distancing signage and tape in the branches. Your efforts during the return to premises in installing signage and mounting sanitizer dispensers has resulted in a smooth reopening of 300+ floors across the country.

Great Job, Team!!

“

Turkey Basters?

Our frontline staff were physically present at various RBC locations to support business operations and essential services. They often had to react quickly to new and changing needs. In one instance, a solution had to be found to better manage hand sanitizers which were delivered in large containers. It was decided that using turkey basters could do the trick as they are large enough to help transfer the liquid into smaller containers which could then be easily distributed and secured at all retail locations. Result? Salman Khan, one of our mobile building operators, was tasked with sourcing 150 turkey basters over a weekend so that all retail branches received their shipment of sanitizers by Monday morning!

Amit Garg, Senior Director, Global Workplace Services & Sustainability, Corporate Real Estate, Royal Bank of Canada

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2019-20 Joint Business Plan Scorecard

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Annual Report | 2020

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2019-20 Joint Business Plan Scorecard While preparing for a financial year, the senior leadership teams from RBC and JLL meet to align their strategic goals for the next twelve months and establish a Joint Business Plan.

JLL branded its 2019-20 plan as FOCIS to work on Financials, Organization, Compliance, Initiatives and Satisfaction.

Below are our performance scorecards for FOCIS 2020 and MSA.

Financials

Comments

Guaranteed Saves

Savings achieved – target $9.8MM vs actual of $10.59MM

JLL Expenses Cap

Fantastic results for 2020 vs previous years

KPIs

Majority are green. Details attached.

Organization RBC/CNB Synergies

New project plan being developed.

One Team / Partnership

Planning for 2021 One CRE partnership enhancements

EMEA Transformation

BG site started up. Remaining Transition and Saves items closure in process.

Globalization / Standardization

Taking revised approach to drive all remaining MSA geographic gapsis

Compliance Supplier Compliance & Summits

Completed.

Playbook Upkeep

Completed annual review by end of October for Service Lines.

Audit prep

Finance and Lease Admin are green; PM improving still yellow.

Initiatives Innovations

4 completed – Corrigo, Service Line Assessments, PM Benchmarking and COVID reporting.

Process Improvements (PIIs)

Completed

PEGA, Clarizen, Corrigo

Completed

RRP / Together Banking (TB)

Projects restarted. Bringing back PM talent to full time to align.

Satisfaction CRE Survey

Score of 69%. Reviewing client feedback, developing action plans for 2021.

Work Orders / Help Desk

Green for 2020

Projects Satisfaction KPI

Green for 2020 – low volume in Q3 noted

Lease Admin Satisfaction

Green for 2020

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Contract Performance Global

Comments

Annual KPI (1)

Client Satisfaction Score

North America Annual KPI (4)

4 KPIs 35 KPIs 2 KPIs: • Q3 Work Order Completion • Q3 Project CSAT

Qtr. KPIs (11x4)

Taking revise2 KPIs: • Q1/Q2 Project Audit On 5 KPIs: hold • Q3/Q4 Project Audit • Q2/Q3/Q4 OP Space Audits

EMEA Annual KPI (3)

No consistent reporting for 2020

Qtr. KPIs (4X4)

No consistent reporting for 2020

APAC 11 KPIs Qtr.. KPIs (3x4)

1 KPI: • Q2 Preventative Maintenance

4 4 4 4

Innovations

4

Pll’s

1

Pap

Annual Report | 2020

Integrated Facilities Management (IFM)

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Integrated Facilities Management (IFM) 16

243

900

~95%

RBC user satisfaction (Corrigo)

22%

full building power shutdowns

Non-COVID facility incidents managed

preventive maintenance tasks

Office Water Reduction (Canada + US)

11%

6.2%

Energy reduction (Canadian Portfolio)

42

9%

major critical environment activities

Branch Portfolio Water Reduction (Canada + US)

Energy reduction (US Portfolio)

Global Highlights

Accomplishments Global • While maintaining a balance of COVID response and re-entry efforts as well as BAU activities, our IFM team achieved all its KPI targets in 2020.

•

IFM also successfully delivered its 2020 Process Improvement (PII) and Innovation programs. This primarily consisted of migrating key operational deliverables to Corrigo, including building condition reports, RBC fund approvals and incident reporting.

North America • We exceeded our Guaranteed Savings Program target to achieve CA$10,590,349 in savings. This was CA$802M above target driven through sourcing contracts, MES selfperformance, energy, program solutions, operational expense control, etc.

Canada • The organizational setup was re-structured to launch the Centre of Excellence Team in June 2020.

•

The operational vendor management program was also enabled to drive suppliers performance through cost, risk and experience.

•

The Regulatory Compliance Program servicing RBC’s owned portfolio launched three new regulatory inspections for backflow preventors, electrical panels and fuel tanks.

Looking Ahead…

Forward. Together: IFM One Team Approach for 2021 COVID-19 response and re-entry has become part of our IFM’s operating model. The team has been restructured to support COVID-19 operations while ensuring that the following contractual obligations and strategic initiatives are achieved:

Annual Report | 2020

Global Guaranteed savings program to achieve 2021 target of ~CA$9.9MM and support the offset of rising costs due to COVID-19 •

Corrigo and Workplace Service Center management solution launch in CALA region - February 1, 2021

•

Standardization of FM playbooks, reporting, compliance program delivery, Corrigo process and SharePoint

•

IFM One Team connected in December 2020 with the intent to look forward and plan for the future of the RBC workplace and the role IFM will play in it. Ongoing sessions planned to keep the global IFM team (CRE & JLL) thinking forward and working together

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Canada/Global • Launch of FM scorecard to drive financial stewardship and ownership of assigned FM portfolios in Q2 2021.

Canada • Priority on FM support to Janitorial RFP with additional focus on leveraging industry technology to reduce disinfection frequencies. This will be shared globally, if achieved.

US • Launch of US Energy and Environmental programs – planned for Q3 2021.

Annual Report | 2020

Lease Administration (LA)

19

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Lease Administration (LA) 1200+

documents abstracted

CA$9.4MM Cost Control Benefits

CA$930MM rent processed globally

CA$0.81MM Cost Savings

Highlights

Celebrating the holiday season virtually with Team RBC

Accomplishments

•

A shared invoice folder was set up for EMEA to streamline rent processing.

•

Last but not least, an automated Manhattan rent variance report and trial grid were developed to streamline rent roll globally.

•

Despite the COVID-19 pandemic, the team ensured business continuity through remote work globally. A team member went into the office weekly to administer mail/cheques in Canada.

•

Over 2,000 COVID-related notices were sent to Landlords about branch closures in Canada and U.S.

•

The Data Accuracy KPI was successfully developed and implemented, achieving a score of 99.4% in Q4 2020.

•

Implementation of PEGA CDC for digital tracking of all critical deliverables.

•

Lease Abstraction & OPEX recovery KPIs were also successfully met.

•

Sharing JLL Desk Top Audit to support RBC/C&W on renewal negotiations.

•

Automated data checks were implemented in Manhattan to ensure data accuracy.

•

•

CALA rent reconciliation and CNB affiliates rent roll were successfully carried out.

Leverton Phase I: JLL LA Platform Enhancement through the integration of Leverton, a lease abstraction software, with Manhattan.

Looking Ahead…

Annual Report | 2020

Project Delivery Services (PDS)

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Annual Report | 2020

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Project Delivery Services (PDS) The year 2020 saw several leadership changes in our Projects (PDS) team, with a healthy mix of new leaders

and promotions of key personnel having deep knowledge of RBC.

New

Paul Whelan SVP PDS

Promoted

Nick Vavaroutsos Director, Retail

Promoted

Tim Hendriks Director, RRP

Amar Singh Director, Office

4 PMs | 1 PC

2 PMs | 1 PC

Promoted

John Hamilton TL – Western Team 3 PMs | 1 PC

1 APM | 1 Data Analyst

Rob Hart TL – Eastern Team

5 PMs | 1 PC

Currently the number of projects that PDS has in process represents 51% of 2019 volume. It will rise to 78% if all projects move past design into construction. The healthy pipeline in place ensures that the PDS team remains active and the vendor ecosystem is suitably primed for 2021 and 2022.

Margaret Beeton PMO Lead

Promoted

Husein Jivajee TL – Central Team

The major portion of 2020 was dominated by the pandemic which had an enormous impact on construction and our PDS team. However, the year was not defined by the pandemic. While it’s true that project volumes in 2020 dropped significantly as work was placed on pause, we used the drop in activity to focus on a wide range of data-driven process improvements.

New

4 PMs | 1 PC

Accomplishments The team focused on two significant challenges in 2020: COVID-19 response and data integrity. Below are some of the major accomplishments in both areas: • Successfully managed COVID impacts on RBC Projects by: ­ — Creating a consolidated impact dashboard ­

— Providing industry trend reporting and Supply ­ chain reporting

­

— Consolidating intelligence and feedback from all ­ North American accounts

•

Invested in our Project Management Office (PMO) to improve data and reporting

•

Completed Audit Resolution as part of Performance Action Plan (PAP)

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•

Improved data integrity processes

•

Implemented ISD process support and alignment

•

As part of Maturity Assessment, all identified opportunities are being tracked in our 2021 activities.

•

Created Multiple New Dashboards

In addition to these areas of focus, PDS continued to manage RBC’s bottom line by identifying and operationalizing cost savings, especially on capital cost, that go up to CA$1MM.

Annual Report | 2020

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Initiative for Retail. This will be reported in various process improvement initiatives which are well underway.

Looking Ahead…

PDS will continue to build on data and support pandemic response such as the soon-to-be completed Queuing

In 2021 PDS will layer onto the foundation established in 2020 in three key strategic areas to support CRE’s 2021 focus.

PDS audit performance action plan

Programs dashboard development

Q2

Q4 KPI dashboards

PDS dashboard consolidation

Q2

Benchmarking for RBC

Sustainibility

Q3 Q2

RBC Intergrated Service Delivery Model (ISD)

Q1

Value engineering

Change Order Reporting

Q2

RBC - JLL maturity assessment

Sundry Reporting

Q1

Performance analytics review

Office/DS/Retail project snapshot - Automate RRP - BAU dashboard - Automate

Lesson’s Learned Process Q1

Globalization

Risk Mgmt Assessment and process development

Sustainability

•

PMO managing program

•

•

Update MSA to reflect differing processes globally

Net Zero and LEED Zero – assess potential for a pilot project

•

Sustainability included in VE workshop on Feb 5

•

Create a global fee matrix •

Q3

Assess role of capital planning in identifying opportunities to reduce carbon footprint

Q1

Value

•

Renewed focus on savings tracker

•

VE workshop on Feb 5 benchmarking

•

Assess project bundling opportunities to leverage scale

•

Review Consolidations wrt lease obligations - minimize exit obligations

Annual Report | 2020

Moves, Adds, Changes and Occupancy Planning (MAC/OP)

25

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Moves, Adds, Changes and Occupancy Planning (MAC/OP) 400+

3000+

900+

people moved

Physical distancing plans created globally

6000+

work requests completed

2500+

Welcome back packages created nationally

60,000+

Workspace safe usage decals placed globally

“As-built” drawing updated

Highlights

Accomplishments Like the IFM team, our OP/MAC also bore the brunt of the pandemic in terms of additional workload. While the above numbers reflect the volume of the deliverables, below are some of the major accomplishments recorded during the course of the year: •

GTA Office Portfolio: The JLL MAC Roadshow was developed.

•

JLL OP BCM Project: Provided support to locate missing drawings and identify spaces for RBC’s Business Continuity Management (BCM). The team also executed many moves for business continuity.

•

Manhattan Data Accuracy Improvement Project: Supported data clean-up and corporate mapping for greater data integrity.

•

Re-entry support: Collaborated with RBC’s Re-entry Team by providing physical distancing methodologies

and planning services. Over 900 physical distancing floorplans and 400 Floor Welcome packages were presented. In addition, the physical distancing floorplans were maintained and updated globally based on changing needs. This effort also resulted in the updating and improvement of the furniture “as-built” drawings globally.

•

New Master Space Service Agreement (MSSA): Supported RBC OP with the implementation of their new Master Space Service Agreement (MSSA) Process

•

New Dashboards: Created a new automated JLL OP KPI Dashboard that links directly with Corrigo to provide the most current data. With this, we also discontinued our manual MAC SharePoint Tracker and automated it via Corrigo. This initiative helped prevent duplication of efforts and offered significant time saving.

•

RBC Technology Support: Provided oversight of RBC’s Return to Premises (R2P) and Trimble Space Scheduler (TSS) tools. The team has become the central point of contact for all R2P-related inquires.

Annual Report | 2020

•

Performance Improvement Initiative (PII): Enhanced the overall submission process and relationship with internal service lines to improve the quality and accuracy of the Retail Drawing Repository.

Looking Ahead…

•

Align Occupancy Planning globally (EMEA, APAC, CALA & CNB) to standardize, leverage processes and drive efficiencies across the board.

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•

Continue supporting the occupancy data clean-up within Manhattan Space to ensure greater data integrity

•

Continue supporting Re-entry Initiatives: e.g. Align pre-moves to physical distancing, updating physical distancing floorplans, creating Welcome Packages, etc.

•

Investigate ways of adapting the efforts of our MAC team to support the changing workplace environment

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Workstation Availability Signage

181 Bay – Physical Distancing Plan

Path of Travel Wayfinding

PHYSICAL DISTANCING AND

Floor Summ 11N-097A

11N-097

11N-100 11N-101

11N-106 11N-107

11N-112 11N-113

11N-118 11N-119

11N-099 11N-102

11N-105 11N-108

11N-111 11N-114

11N-117 11N-120

11N-098 11N-103

11N-104 11N-109

11N-110 11N-115

11N-116 11N-121

11-NORTH-42F 11-NORTH-41C 11-NORTH-42E 11-NORTH-41B 11-NORTH-41D 11-NORTH-42A 11-NORTH-41A 11-NORTH-42D 11-NORTH-41E 11-NORTH-42B 11-NORTH-41F 11-NORTH-42C

6

4

11N-144A 11N-124 11N-125

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11N-135 11N-138

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11N-128 11N-133

11N-134 11N-139

7

4

Typ.

11-WEST-32

4

6

4

4

4 11-NORTH-43

11-NORTH-33 11-NORTH-35

11-NORTH-36

11-N-110.1

11-NORTH-39 11-N-115.1

11-NORTH-39.1 11-NORTH-40.1

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11E-003 11E-002 11E-001

11 NORTH-54

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Max (meeting rooms, offices &

11E-015 11E-014 11E-013

One Way Arrowhead

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One Way Arrow

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Available (seats)

8

20 Second Small

11-EAST-05

11

4

11 11

Dot (floor /wall /cabinet / 6' (2 m) apart, wait in line

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11E-016 11E-017 11E-018 11-160

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Do Not Enter

11E-010 11E-011 11E-012

11

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11-WEST-28

4

6

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11W-07811W-07711W-076

Main Entrance

2

Typ.

11-EAST-03.1 11-EAST-04

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1

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11-EAST-03

11-WEST-29

4

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11W-07911W-08011W-081

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Signage Legend

11E-009 11E-008 11E-007

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11W-08511W-08611W-087

11W-08411W-08311W-082

11N-145

11

11W-09111W-09211W-093

11W-09011W-08911W-088

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11-NORTH-44

11-NORTH-40

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11E-021 11E-020 11E-019

11 8

11E-022 11E-023 11E-024

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11W-07311W-07411W-075

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20 Second Large

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11W-06611W-06511W-064

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6 11-SOUTH-2511-SOUTH-24 4

11-SOUTH-15.1 11-SOUTH-12 11-SOUTH-17

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UP

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11S-051

11-SOUTH-16A

6

11

11

Seat Available Seat Unavailable Path of Travel

6'-0" from person to person (shoulder to shoulder) Red workspaces will not be occupied due to overlapping physical distancing circles

Location Entry/ exit points Floor Washroom Doors Oasis, Serveries Strategic touch points DISCLAIMER:

©2020 Jones Lang LaSalle IP, Inc. All rights reserve sources deemed reliable; however, no representat accuracy thereof or results. The information is crea spreading infectious disease and viruses. There is n suggestions will decrease or eliminate the risks of s information is merely a suggestion and should be i individual.

Building Address: 181 Bay Street

Identify Strategy

6'-0"

Face Mask

11-EAST-10

RBC Workplace Re-entry Guideline 7'-6"

6

11S-038 11S-037 11S-03611S-035

10

Physical Distancing Solution

14

Hand Sanitizing Sta 11E-034A

11-EAST-09

11S-039 11S-040 11S-04111S-042

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Not Available (Oasis seats, washroom sinks,

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11

4

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11 11-SOUTH-13

Typ. 11S-047 11S-048 11S-049 11S-050

Stay Healthy

11E-028 11E-029 11E-030

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Typ.

7 11S-061

6

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11S-063

Note: Workpoints include only workstations and private offices.

Meeting rooms, Focus rooms, and Privacy Pods will not be cons

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11-NORTH-5111-NORTH-52

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11W-09611W-09511W-094

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11N-144

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Building ID: CAN-D110 Floor ID : 011 Date: July 14th, 2020 Prepared By: AP

Annual Report | 2020

Sourcing & Supplier Management

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Sourcing & Supplier Management 21

349

major sourcing initiatives successfully delivered

suppliers tracked for compliance across all four RBC global regions

>CA$4MM contribution to guaranteed savings KPI

Highlights

Accomplishments •

JLL Supplier Management successfully achieved our Supplier Compliance KPI, effectively managing compliance requirements for 349 suppliers across 4 global regions.

•

The EMEA Sourcing Manager effectively consolidated 120 distinct FM services spread across 8 countries leveraging only 34 JLL-preferred suppliers.

•

The North American Sourcing Team managed furniture, carpet and trade desk RFPs for the RBC Minneapolis Project delivering greater than CA$2.9MM in cost reductions.

•

The North American Sourcing Team also supported an architectural sourcing event for an upcoming relocation project in Sydney, Australia, seamlessly coordinating with local stakeholder and the RBC CRE Project Team based in London.

•

Effectively implemented national COVID-19 response programs in Canada for:

•

Daily disinfection at over 1,200 sites Weekly disinfection at over 1,300 RBC offsite ATMs National rollout of hand sanitizer programs at all Canadian RBC locations

Supported the rollout of a queue management program as part of COVID-19 response providing solutions for dividers and ticket-taking systems at 300 locations nationally.

Looking Ahead •

Janitorial category review: The most significant sourcing initiative in 2021 is the janitorial services RFP, which is the most important category operationally. The RFP is significant category-wide reassessment of our cleaning and disinfecting procedures for our retail and office properties.

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•

Global Operating Model: We are working closely with CRE Global Supplier Management to enhance our global integration delivering the supplier management mandate. We are working effectively to align our reporting with the EMEA team and developing a plan to support CNB with the implementation of the CRE Supplier Management model.

•

New Sourcing lead on JLL platform: JLL recently hired a new Canadian lead for sourcing. We are excited at the opportunity to better integrate our account sourcing program with the national JLL sourcing platform to continue to innovate and drive value for RBC.

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Finance Accounting

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Finance Accounting

CA$138MM

CA$43MM

CA$1.052MM

(Canada),

US$2.1MM (US),

CA$60M

(EMEA) COVID-related additional costs

CA$4.3MM

CAP Savings

CA$813MM Opex Canada;

(Canada) Opex reduction due to closures

US$145MM Opex US

Capex (JLL projects – Canada),

CA$23MM

(T&T projects in Canada) & US43MM (T&T projects in US)

Global Highlights

Accomplishments •

Our team attained its first full year of IFRS 16 compliance for the global RBC portfolio — 2,039 leases recognized for IFRS16 and 356 leases for FASB (ASC 842) — The Accretion & Amortization lease cost for 2020 stands at: CA$86.9M for RBC Canada, CA$61.6M for RBC US/CNB, and CA$27.8M for international portfolios including EMEA, APAC and CALA.

•

We successfully met the new KPI for settling construction invoices in Ontario (Canada), based on the New Prompt Payment Act. — 99% and 100% of invoices were paid in Q3 and Q4 respectively within 28 days from the receipt date (at target). This is a huge improvement on the situation a year ago when project invoices were paid within 41 days on average.

•

Days-to-pay LI: 99% of non-project invoices processed within 60 days vs 95% KPI

•

All monthly reporting, forecasts and budgets were submitted within contractual timelines

•

As part of our globalization process, EMEA monthly financial reporting, budgeting and forecasting were realigned with those followed in North America

•

As the pandemic spread, reporting of costs related to COVID-19, reduction of operating expense due to closures, updating ARO methodology and various urgent ad-hoc requests were promptly carried out throughout the year. This was highly appreciated by RBC

•

Managed IFRS 16 for Global RBC portfolio including EMEA, APAC and CALA

•

Created RBC Global FY2021 Forecast for landlord charges in EMEA, CNB, CALA, APAC

•

Performed intensive regression testing for Compliance module in Manhattan

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•

Started working with CNB on synergies in financial tasks

•

Further value-added tasks earmarked for transition to JLL Finance (e.g. Vacant Space Accrual)

Looking Ahead •

Continue meeting the evolving needs in client-financial reporting and proactively identify trends/insights for CRE 2021 flat-cost objective

•

New ARO methodology realigned with IFRS16 standard and re-statement

•

Realign global financial reporting with the North American standard

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•

Improve Manhattan Compliance data accuracy through continuous testing, functionality enhancements and reporting improvements

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US Overview

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US Overview

Accomplishments •

­

During the COVID-19 pandemic, after the initial lockdown, U.S. soon allowed all offices to remain open under essential business status. In alignment with global IFM protocols for preventive and reactive measures, our U.S. team maintained the required operational support for the entire US Portfolio. Weekly status reporting for the US Region included: — Response to 61 RBC presumptive and ­ confirmed positive cases requiring ­ decontamination/ disinfecting

­ ­

— Ongoing tracking of confirmed COVID-19 cases within the branch and OP portfolio. This included both

cases reported by RBC and those reported by landlords (LL) that impacted other tenants in the buildings where RBC leases space. ­

— Continuous tracking of building modifications to ­ services, access and hours of operation that impacted RBC offices

­

— Sought out opportunities for utility reductions ­ resulting in over US$126M in energy saves for two of our larger properties

­ ­

— Track monthly COVID-related spend and accruals — Reached out to 80+ janitorial service providers to ­ review and track decontamination capacity in the event of a confirmed case. Worked with LLs and contracted vendors to respond to enterprise-directed cleaning enhancement protocols as well as

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­ ­ ­

decontamination services throughout the pandemic.

— The Occupancy Planning (OP) team coordinated and provided physical distancing floor plans for all US locations and spearheaded the re-entry signage counts for each US site, ensuring all COVID-19 Workplace Design Guidelines were followed.

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•

SLA completion rate of 95% was achieved in response to 3,125 US work orders.

•

Managed procurement and distribution of all PPE and signage for all US office properties and branch locations.

•

47,560 3-ply disposable masks

•

20,525 3-ply cloth reusable masks

•

285,500 disposable gloves

­

— The FM team completed installation of over 5,000 ­ signs at three major office properties.

•

The Guaranteed Cost Save KPI of US$1.3MM was achieved.

•

1,272,100 disinfecting wipes

•

86,160 bottles of 8 oz hand sanitizer

Our team coordinated about 20 Incident Advisory events including building power shutdowns and condenser water shutdowns impacting DCR supplemental cooling.

Notifications were sent to branch personnel, RBC IT and BCM (Business Continuity Management) and the Incident Advisories were transitioned to a new Corrigo platform as of October 2020.

•

28,072 signs

•

Minneapolis Gateway Project - Move Plan and Plaza Decommission

Phase IV Supplier Compliance Initiative was completed: 73 suppliers were contracted and brought into compliance and 17 rationalized.

•

Development of a US Energy and Environmental Program

•

Continue progress on completing a full US portfolio asset database Integrate with Corrigo and complete PM services, where necessary

•

CNB/RBC transformation efforts

•

Corrigo program enhancements to improve efficiencies

•

Supplier Compliance and Rationalization efforts continue

•

•

•

Efforts are on to embrace globalization efforts and the One-Team model through participation in the first annual virtual RBC Race for the Kids, raising over US$600 from US JLL Team. Also coordinated virtual holiday gatherings with RBC and One-Team service partners, raising over US$1,000 for local food shelters at Thanksgiving and over $500 for local toy drives at Christmas.

Looking Ahead

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EMEA Overview

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EMEA Overview A year of change and learning in EMEA with RBC moving to an outsourced model for IFM services and JLL taking over operational delivery of key services across EMEA.

2019/20 are now well established and have collectively worked together to overcome the bigger challenges of projects Athena and Apollo.

New colleagues transferred into JLL from RBC as part of a first generation TUPE. Despite some early concerns, the transferred team has settled into JLL and is adjusting well to life on the other side of the industry.

Overall, a productive year despite all the challenges. Below are a few accomplishments:

COVID-19 has caused very real challenges across the Account making BAU more difficult than anybody could foresee, but the EMEA team and the supporting supply chain has remained largely resilient with only small tactical operational issues prevailing at any time and no material drop-in service.

The account team members who were all new to JLL in

Accomplishments •

100 Bishopsgate Office in London was quickly established despite JLL being engaged late on the project and starting from behind. The RFP and tendering process for IFM services (~ CA$6.5MM) was successfully completed to ensure balance of best operational fit and value for money.

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•

100 Bishopsgate FM Commissioning cost challenges closed out in collaboration with RBC

•

Restructure / rethink the EMEA Account team, based on learnings from FY 2019-20, to reinforce its capabilities.

•

Paris HR issues, which had implications for the whole EMEA Account closed out with a “hybrid model” – i.e.

RBC retains the local FM team and JLL takes over the supply chain

•

Understanding RBC’s changing post-COVID requirements

•

Corrigo end user rollout early 2021

•

Revised RBC baseline validated and signed off by RBC.

•

Savings of CA$220M per annum (CA$880M OL*) already achieved year on year despite the challenges.

Further savings of CA$206M per annum identified and programmed for implementation (~ CA$1.5MM CAD total OL*) (*OL = recurring over life)

•

CA$700M to date of further savings derived from operational changes related to pandemic response

•

EMEA Supply chain successfully migrated to JLL and compliant

•

Seamless delivery of operations, despite the pandemic, with zero impact on services

•

Exited RBH, LTS and TC in London; Avenue Hoche in Paris (to launch services in Avenue Marceau); and Lugano, Switzerland

•

Supported RBC with the rollout of COVID-19 prevention measures across EMEA. These measures included social distancing, enhanced cleaning regimes and amendments to the scope and scale of IFM services across EMEA

Looking Ahead •

Globalization of the RBC IFM model: Greater alignment with North America will be a key area of focus.

•

Supply chain consolidation to maximize “value for money” across EMEA.

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Human Experience Human Experience

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Community Connections

This year, due to COVID, RBC Race for the Kids was organized as a global and virtual race. This meant that thousands of participants could come together virtually on the weekend of October 17-18, 2020, to get active and raise funds for an amazing cause. Moreover, participants had the flexibility to jog, run, wheel or scoot their way around their chosen distance – right in their neighbourhood or backyard too!

We saw this as an opportunity to engage our Account globally. Setting a small goal to raise CA$2,500, we ran a simple email and Yammer marketing campaign. The

numbers started soaring within days and, by the race weekend, there were more than 100 sponsors, participants and supporters from across the globe. Together, they raised more than CA$21,000, placing us among the Top Ten Fundraisers.

“

In 2009, I ran in the inaugural RBC race for the Kids and it has been amazing to see how far this race has come over the years. This year, we had more people participate and donate than in any other year. 2020 has presented all of us with different challenges and it was great to see JLL come together for a great cause in support of our client RBC.

“

JLL has always participated in RBC Race for the Kids, an annual event to support Sunnybrook Hospital’s Project in Canada on the mental health of children and youth.

– Holly Willenbrecht, One Team Captain, RBC Account.

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“

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Over the past 5 years we have seen a small group engage in raising money and running the event.

The pandemic changed our outlook. It allowed us to reach further because the run was not confined to just those in Toronto. We saw engagement in fundraising and running the event right across the globe and across other accounts. It was a great example of unity across JLL…coming together for a great cause and to support a valued client.

Thanksgiving & Holiday Party JLL-U.S. team’s traditional annual Thanksgiving Potluck became a ‘virtual’ One Team event this year with about 22 participants from JLL, RBC, C&W and T&T. Members were simply expected to grab their lunches and hop on to the call. They played “Thanksgiving Battle” (a holiday version of Family Feud) and raised over $1,000 for local “food shelves”.

They followed this up with a “One Team” Virtual Holiday Party which included a variety of activities and an engaging presentation by each service partner lead!

“

– Stuart Ross, Director (IFM), RBC Account In support of the CREServes Giving Campaign,

JLL donated CA$1,000.

Team Connections JLL has been focusing on developing initiatives in the areas of Recognition, Thought Leadership, Social Connections and Co-Training.

When COVID-19 set our employees apart, JLL launched several initiatives to help our teams not only to work together but also to play together as those connections are so important for engagement and mental health:

Team Pow-Wows JLL’s FM, Projects, Occupancy Planning and Lease Admin teams regularly met with their RBC counterparts and other service partners virtually. With a spirit to “Bond & Build”, the teams organized games and engaged in happy hour activities.

The spinning wheel, from our “Donut Days”. took a virtual shape and has proved to be a big hit again!

EMEA Care Kits To support employee well-being in these COVID times, our EMEA office distributed “Care Kits” to the entire team. The kits included simple items to remind everyone to take care of themselves and those around – puzzles, fidget cubes, herbal tea bags, pencils, socks and more.

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New Normal Challenge In May 2020, in an effort to keep our employees engaged, we challenged them to showcase their new normal in a short 2-3 minute video. Every week, three volunteers presented their home office and their experience in a variety of shades: humour, horror, reflective and even motivational.

The campaign had an amazing 30-week run during which more than 70 participants shared their New Normal with the entire Account.

Industry Recognition During FY 2019-20, RBC and JLL were recognized by BOMA and CoreNet - two leading real estate industry associations – for their remarkable contribution to sustainability.

BOMA presented the Corporate Real Estate Sustainability Trailblazers (CREST) Award to RBC and JLL for “Performance

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Leadership” in two RBC retail branches: 2900 Warden Avenue, Scarborough (Ontario) and 185 Griffin St. North, Smithville (Ontario). These two branches were able to reduce energy use by 36% and 25% respectively through careful application of proven conservation measures and fine-tuning of lighting and HVAC systems. Four other branches located in North York, Hamilton and Woodstock received honorable mentions.

RBC and JLL, along with their partner Energy Metrics, also received the CoreNet Global Remmy Award for the retail IoT/ smart devices program. These devices have been installed in 571 RBC retail sites for remote controlling of basic HVAC functions and more precise management of setpoints and setbacks. A major achievement of this strategy is significant energy conservation of 9000 MWh.

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Onward and Upward...

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CRE Preliminary Goals

Client •

Drive the evolution of RBC’s workplace strategy in alignment with the Future of Work (with HR, Technology, EE, & STS)

•

Expand and strengthen the CRE client relationship model and increase client satisfaction scores

•

•

Deliver major CRE Program initiatives including Minneapolis, Caribbean, and Retail (Plaza Branch) on time and under budget

Shareholder •

•

Operations

Leverage CRE’s scale and strategic market insights to make a material contribution to RBC’s efficiency on the $1.8B cost base (with Enterprise Efficiency & Procurement)

•

Develop and mobilize a roadmap and plan for RBC’s footprint that is aligned to workforce and business strategies (including GTA, Canada, Caribbean, US, EMEA, APAC)

•

Enable RBC’s response to pandemic re-entry planning through the integrated enterprise program (with Risk, HR, T&O)

Despite all its challenges, FY 2019-20 was extremely gratifying as it helped unleash JLL’s potential. We now look forward to 2020-21 with new plans, new hopes and new programs.

•

Enhance CRE’s brand • and reputation both internally and externally through communication and partnership through the re-launch of the CRE Intranet Site and Quarterly • Client Newsletter Fully implement our global CRE Operating Model to better strengthen our risk management and efficiency as ONE CRE • supporting all platforms and regions Deliver programs that will promote social responsibility, sustainability and further RBC’s goals for climate change (with BMCC)

Employee Evolve our three CRE EOS workstreams to focus on critical issues such as role clarity, process improvement, and diversity and inclusion Support employee learning and development through increased talent rotations and secondments across CRE Launch new CRE initiatives that allow us to support one another, strengthen collaboration, enhance our culture, and drive learning and innovation (i.e., CRELearns, CREServes CREMentors, and CRERecognizes)

These will be aligned with CRE’s 2021 Strategic Goals of which the “One CRE Program” is a major priority.

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2020 Goal Alignment

Global Consistency

Global Transformation Pandemic Re-entry Planning and Implementation

Cost Efficiencies and Savings

Annual Cost Savings COVID Specific BAU Operational Supplier-based

Standardization and Continuous Improvement

CRE initiatives

Global Service Lines​ Regional Delivery

Enhanced L&D Framework Across Regions

Playbooks, Processes, Reporting

Diversity and Inclusion

Leverage Scale of Services – CNB/RBC

Awards Program

Thought Leadership

DEI & I Council

Social and celeberations

Ongoing communication

Explore partner innovations

As we progress on this path, we would like to thank RBC CRE team for their wonderful cooperation in 2019-20.

We look forward to partnering with you even more effectively in this new financial year in support of our motto: One Team, One Vision.

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