Annual Report_V5

Annual Report | 2020 1 Annual Report 2019 - 2020 JLL-RBC partnership – One Team, One Vision

Annual Report 2020 Table of contents 3 5 Account Senior Leadership Team 8 Account Overview 10 Success Stories 16 2019-20 Joint Business Plan Scorecard 19 Integrated Facilities Management 21 Lease Administration 25 Project Delivery Services 29 Occupancy Planning & Moves, Adds, Changes 32 Sourcing & Supplier Management 35 Finance & Accounting 39 US Overview 41 EMEA Overview 45 Human Experience Onward and Upward…

Annual Report | 2020 3 Account Senior Leadership Team Steve Rawlin Nick Heibein Paul Whelan Global Global Global Account Executive Operations Officer Projects Lead Stuart Ross Michael Marano Natalia Schetin Global IFM Lead Global Global Sourcing Lead Finance Lead Saurabh Sachdev Global Lease Rob O’Shea Admin Lead Global OP/MAC Lead Lily Trieu Global HR Lead Pamela Skogland Adam Hill US Account Lead EMEA Account Lead

Annual Report | 2020 4 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 the United States. Our sincere thanks to Tim for his contribution to the RBC Account.

Annual Report | 2020 5 Account Overview

Annual Report | 2020 6 Account Overview 265.43 27,276 2500+ 2,633 ~$800M Headcount Help Desk “As-built” Leases Lease Admin call volume drawings Managed cost savings 519 23.4 MM 21 updated 800M $930 MM Projects closed out Major Additional Rent Processed sourcing Guaranteed Square feet events Savings RBC area 146,000+ 3000+ ~1MM $4.3MM managed Work orders People moved CAP under Savings for budget 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 CA$800M, raising the total savings over the past three Royal Bank of Canada (RBC). Chronologically, it marked years to more than CA$2MM. the fifth anniversary of our successful association. More importantly, though, it was a year that saw unprecedented • Contained CAP expenses almost CA$1MM under the events like the Snowmageddon in Eastern Canada and the budget of CA$30MM. COVID pandemic which has changed the way business is done across the world. • Realized CA$4.3MM facility cost savings for non-occupied spaces and almost CA$800M in Lease While attending to these extraordinary circumstances on Admin cost savings. a war footing, we persisted in moving forward on our joint FOCIS plan laid out for the financial year 2019-2020. Thanks • Successfully delivered branch formats against to the efforts of our exceptional teams, we were able to aggressive timelines, in line with CRE’s ongoing deliver strong BAU results in FY2019-20. Following are a transformation goals. few highlights: • The Brentwood Project was finally launched last • Surpassed our Guaranteed Savings commitment by September after long negotiations which started way back in 2013. It is scheduled to be delivered in spring 2021.

Annual Report | 2020 7 > 2M over Guaranteed savings • The International Financial Reporting Standard IFRS 16 was successfully implemented globally. target last 3 years 12 10 • Pega, a lease administration tool, went live in December Annual 2019 for Canada and US. As a comprehensive and guaranteed 8 unified platform, Pega provides greater efficiencies while Cost savings 6 reducing risks significantly. 4 • Our US team provided quick support in the aftermath of 2 wildfires and hurricanes in several locations. 0 • We obtained approval for FOUR Innovations and FOUR 2016 2017 2018 2019 2020 process improvements. Target Achieved • As many as 670 Good Catch/Near Miss incidents were recorded between January and November 2020. RBC Canada & US consolidated JLL CAP in CA $000 expense CAP • We are managing 499 active projects with a project spend of $138MM. $31,000 budget FY2020 $30,000 • Phase IV of US compliance was completed and 73 new $29,000 < 1M under suppliers were added. $28,000 $27,000 • Achieved 100% contract and supplier compliance. $26,000 $25,000 • Fully supported RBC’s One Team motto by successfully $24,000 collaborating with other service partners to deliver a number of projects that were recognized with One 2016 2017 2018 2019 2020 Team Awards. Target Actuals • Completed our HR Capability Matrix for implementation in 2021. Notable savings • Onboarded several key personnel virtually, including Steve Rawlin, our Global Account Executive. 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

Annual Report | 2020 8 Success Stories

Annual Report | 2020 9 Success Stories JLL Battles the JLL’s team, led by Angela Jackman, banded with our vendors “ Snowmageddon to help everyone get back to work as soon as the state of emergency was lifted on January 26. They worked around the January 17, 2020 – Newfoundland, Canada, saw a monster clock to clear the snow and ensure the sites were safe for our storm wallop the east coast of the island and blanket it clients to return to work. under a record-breaking 93 cm of snow with winds raging at 150 km/hr. Within 10 hours, a state of emergency was “ During our snowstorm today, Angela went above and enacted and the army was called in. The Avalon Peninsula beyond sending a detailed, one-page spreadsheet of came to a grinding halt and the 250,000 residents of the all closures; this made it much easier for the Regional region were told to stay inside. The island was completely Operating Officer and Regional President to have a shut down. consolidated view of the region’s operational status— it was greatly appreciated and commented on. The storm affected 14 of the 19 RBC branches located in the region, including the Main Processing Plant for Newfoundland Michele Trider | Senior Manager, Physical Networks Delivery | and Labrador. RBC’s main branch in St. John’s had over 4 feet Physical Networks & Distribution of hard-packed snow on the roof and in front of the main entrance.

Annual Report | 2020 10

Annual Report | 2020 11 Success Stories The COVID Challenge Early January 2020, as COVID-19 started spreading across regular site inspections for closure and re-entry. the world, we began sharing communications, alerts and Simultaneously, they worked with our Sourcing team and resources. By mid-March, the situation worsened to such mobile technicians to procure PPE supplies (masks, gloves, an extent that lockdown orders were issued by several hand sanitizers, etc.) to all RBC retail locations. governments. RBC and JLL declared office closures and “work-from-home” arrangements across the globe. Starting May, they partnered with our Occupancy Planning (OP) and Moves, Adds, Changes (MAC) teams to design and JLL’s Integrated Facilities Management (IFM) team immediately implement re-entry protocols with floor layouts, physical channelized SEVEN workstreams to manage FM operations distancing drawings, welcome packages, etc. globally. They organized weekly “all hands” meetings across Canada and US; 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

Annual Report | 2020 12 A Centre of Excellence (CoE) was also created 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 Re-Entry +700 1200/100 350 380,000L 340 60K Branches Branches/Floors Floors prep’d Hand Sanitizer Floors re-opened Safe usage Remained Nightly  with PPE since July decals globally Open Disinfection and Signage 150 4MM 34MM 7MM 911 400+ Turkey Disposable Disinfecting Disposable Floor plans Welcome Basters gloves Wipes Masks completed as of packages in Canada October 31 $565,000 Savings + Ongoing Operations Throughout With the pandemic still wreaking havoc, this story is far from into smaller containers which could then be easily distributed“ over yet! and secured at all retail locations. Result? Salman Khan, one Turkey Basters? of our mobile building operators, was tasked with sourcing Our frontline staff were physically present at various RBC 150 turkey basters over a weekend so that all retail branches locations to support business operations and essential services. They often had to react quickly to new and changing “received their shipment of sanitizers by Monday morning! needs. In one instance, a solution had to be found to better I would like to thank the MES team for their amazing manage hand sanitizers which were delivered in large work in supporting RBC during both the pandemic containers. It was decided that using turkey basters could do response phase and now through the return to the trick as they are large enough to help transfer the liquid 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!! Amit Garg, Senior Director, Global Workplace Services & Sustainability, Corporate Real Estate, Royal Bank of Canada

Annual Report | 2020 13 2019-20 Joint Business Plan Scorecard

Annual Report | 2020 14 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  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 gaps  Compliance  Supplier Compliance 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 

Annual Report | 2020 15 Contract Performance 44 Innovations 44 Performance  Global  Comments  Annual KPI (1) Client Satisfaction Score Improvement  North America Initiatives (PII) Annual KPI (4) 4 KPIs 35 KPIs   41 Performance 2 KPIs: Action Plan (PAP) • Q3 Work Order Completion • Q3 Project CSAT  Qtr. KPIs (11x4) 2 KPIs: • Q1/Q2 Project Audit  EMEA Annual KPI (3) On 5 KPIs: hold • Q3/Q4 Project Audit • Q2/Q3/Q4 OP Space Audits No consistent reporting for 2020 Qtr. KPIs (4X4) No consistent reporting for 2020  APAC 11 KPIs Qtr.. KPIs (3x4) 1 KPI: • Q2 Preventative Maintenance

Annual Report | 2020 16 Integrated Facilities Management (IFM)

Annual Report | 2020 17 Integrated Facilities Management (IFM) 243 16 22% Non-COVID facility full building Office Water incidents managed power shutdowns Reduction (Canada + US) ~95% 900 11% 6.2% RBC user preventive Energy reduction Branch Portfolio satisfaction maintenance tasks (Canadian Portfolio) Water Reduction (Canada + US) (Corrigo) 42 9% major critical Energy environment reduction (US Portfolio) activities Highlights Accomplishments Canada • The organizational setup was re-structured to launch the Global • While maintaining a balance of COVID response and Centre of Excellence Team in June 2020. re-entry efforts as well as BAU activities, our IFM team • The operational vendor management program was also achieved all its KPI targets in 2020. enabled to drive suppliers performance through cost, risk and experience. • IFM also successfully delivered its 2020 Process Improvement and Innovation programs. This primarily • The Regulatory Compliance Program servicing RBC’s consisted of migrating key operational deliverables to owned portfolio launched three new regulatory Corrigo, including building condition reports, RBC fund inspections for backflow preventors, electrical panels approvals and incident reporting. and fuel tanks. North America Looking Ahead… • We exceeded our Guaranteed Savings Program target Forward. Together: IFM One Team Approach for 2021 to achieve CA$10,590,349 in savings. This was CA$802M COVID-19 response and re-entry has become part of our IFM’s above target driven through sourcing contracts, MES self- operating model. The team has been restructured to support performance, energy, program solutions, operational COVID-19 operations while ensuring that the following expense control, etc. contractual obligations and strategic initiatives are achieved:

Annual Report | 2020 18 Global Canada/Global • Guaranteed savings program to achieve 2021 target of • Launch of FM scorecard to drive financial stewardship ~CA$9.9MM and support the offset of rising costs due and ownership of assigned FM portfolios in Q2 2021. to COVID-19 Canada • Corrigo and Workplace Service Center management • Priority on FM support to Janitorial RFP with additional solution launch in CALA region - February 1, 2021 focus on leveraging industry technology to reduce • Standardization of FM playbooks, reporting, compliance disinfection frequencies. This will be shared globally, if program delivery, Corrigo process and SharePoint achieved. • IFM One Team connected in December 2020 with the US intent to look forward and plan for the future of the • Launch of US Energy and Environmental programs – RBC workplace and the role IFM will play in it. Ongoing sessions planned to keep the global IFM team (CRE & planned for Q3 2021. JLL) thinking forward and working together Branch re-opening 1000 cranes of hope to thank frontline staff

Annual Report | 2020 19 Lease Administration (LA)

Annual Report | 2020 20 Lease Administration (LA) 1200+ documents abstracted CA$930MM CA$9.4MM rent processed Cost Control globally Benefits CA$0.81MM Cost Savings Celebrating the holiday season virtually with Team RBC Highlights Accomplishments • A shared invoice folder was set up for EMEA to streamline rent processing. • Despite the COVID-19 pandemic, the team ensured • Last but not least, an automated Manhattan rent business continuity through remote work globally. A variance report and trial grid were developed to team member went into the office weekly to administer streamline rent roll globally. mail/cheques in Canada. Looking Ahead… • Over 2,000 COVID-related notices were sent to Landlords about branch closures in Canada and US • The Data Accuracy KPI was successfully developed and • Implementation of PEGA CDC for digital tracking of all implemented, achieving a score of 99.4% in Q4 2020. critical deliverables. • Lease Abstraction & OPEX recovery KPIs were also • Sharing JLL Desk Top Audit to support RBC/C&W on successfully met. renewal negotiations. • Automated data checks were implemented in Manhattan • Leverton Phase I: JLL LA Platform Enhancement through to ensure data accuracy. the integration of Leverton, a lease abstraction software, • CALA rent reconciliation and CNB affiliates rent roll were with Manhattan. successfully carried out.

Annual Report | 2020 21 Project Delivery Services (PDS)

Annual Report | 2020 22 Project Delivery Services (PDS) The year 2020 saw several leadership changes in our and promotions of key personnel having deep knowledge PDS team, with a healthy mix of new leaders of RBC. New Paul Whelan SVP PDS Promoted Tim Hendriks Promoted New Director, RRP Nick Vavaroutsos Amar Singh Margaret Beeton Director, Retail 4 PMs | 1 PC Director, Office PMO Lead John Hamilton Promoted 2 PMs | 1 PC 1 APM | 1 Data Analyst TL – Western Team Husein Jivajee Promoted 3 PMs | 1 PC TL – Central Team Rob Hart 5 PMs | 1 PC TL – Eastern Team 4 PMs | 1 PC The major portion of 2020 was dominated by the pandemic Accomplishments which had an enormous impact on construction and our PDS team. However, the year was not defined by the The team focused on two significant challenges in 2020: pandemic. While it’s true that project volumes in 2020 COVID-19 response and data integrity. Below are some of the dropped significantly as work was placed on pause, our major accomplishments in both areas: PDS team used the drop in activity to focus on a wide • Successfully managed COVID impacts on RBC Projects by: range of data-driven process improvements. ­ — Creating a consolidated impact dashboard Currently the number of projects that PDS has in process ­ — Providing industry trend reporting and Supply represents 51% of 2019 volume. It will rise to 78% if all ­ chain reporting projects move past design into construction. The healthy pipeline in place ensures that the PDS team remains active ­ — Consolidating intelligence and feedback from all and the vendor ecosystem is suitably primed for 2021 ­ North American accounts and 2022. • Invested in our Project Management Office (PMO) to improve data and reporting • Completed Audit Resolution as part of our Performance Action Plan (PAP)

Annual Report | 2020 23 • Improved data integrity processes • Implemented ISD process support and alignment • Created Multiple New Dashboards • As part of Maturity Assessment, all identified opportunities are being tracked in our 2021 activities. 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 24 Looking Ahead… Initiative for Retail. This will be reported in various process improvement initiatives which are well underway. 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 RBC Intergrated Service Delivery Model (ISD) Q1 Value engineering Q2 Change Order Reporting Q2 RBC - JLL maturity assessment Sundry Reporting Q1 Performance analytics review Q3 Office/DS/Retail project snapshot - Automate Lesson’s Learned Process RRP - BAU dashboard - Automate Q1 Risk Mgmt Assessment and process development Q1 Globalization Sustainability Value • PMO managing program • Net Zero and LEED Zero – assess • Renewed focus on savings tracker potential for a pilot project • Update MSA to reflect differing • VE workshop on Feb 5 - processes globally • Sustainability included in VE benchmarking workshop on Feb 5 • Create a global fee matrix • Assess project bundling • Assess role of capital planning opportunities to leverage scale in identifying opportunities to reduce carbon footprint • Review Consolidations wrt lease obligations - minimize exit obligations

Annual Report | 2020 25 Occupancy Planning & Moves, Adds, Changes (OP/MAC)

Annual Report | 2020 26 Occupancy Planning & Moves, Adds, Changes (OP/MAC) 3000+ 900+ 400+ 60,000+ people Physical Welcome back Workspace safe moved distancing plans packages usage decals created globally placed globally created nationally 6000+ 2500+ work “As-built” requests drawings updated completed Highlights Accomplishments and planning services. Over 900 physical distancing floorplans and 400 Floor Welcome packages were Like the IFM team, our OP/MAC also bore the brunt of the presented. In addition, the physical distancing pandemic in terms of additional workload. While the above floorplans were maintained and updated globally based numbers reflect the volume of the deliverables, below are on changing needs. This effort also resulted in the some of the major accomplishments recorded during the updating and improvement of the furniture “as-built” course of the year: drawings globally. • GTA Office Portfolio: The JLL MAC Roadshow • New Master Space Service Agreement (MSSA): was developed. Supported RBC OP with the implementation of their new Master Space Service Agreement (MSSA) Process. • JLL OP BCM Project: Provided support to locate missing drawings and identify spaces for RBC’s Business • New Dashboards: Created a new automated JLL OP - Continuity Management (BCM). The team also executed KPI Dashboard that links directly with Corrigo to provide many moves for business continuity. the most current data. With this, we also discontinued our manual MAC SharePoint Tracker and automated it • Manhattan Data Accuracy Improvement Project: via Corrigo. This initiative helped prevent duplication of Supported data clean-up and corporate mapping for efforts and offered significant time saving. greater data integrity. • RBC Technology Support: Provided oversight of RBC’s • Re-entry support: Collaborated with RBC’s Re-entry Return to Premises (R2P) and Trimble Space Scheduler Team by providing physical distancing methodologies (TSS) tools. The team has become the central point of contact for all R2P-related inquires.

Annual Report | 2020 27 • Performance Improvement Initiative (PII): Enhanced • Continue supporting the occupancy data clean-up within the overall submission process and relationship with Manhattan Space to ensure greater data integrity internal service lines to improve the quality and accuracy • Continue supporting Re-entry Initiatives: e.g. Align of the Retail Drawing Repository. pre-moves to physical distancing, updating physical Looking Ahead… distancing floorplans, creating Welcome Packages, etc. • Investigate ways of adapting the efforts of our MAC team to support the changing workplace environment • Align Occupancy Planning globally (EMEA, APAC, CALA & CNB) to standardize, leverage processes and drive efficiencies across the board

Annual Report | 2020 28 Workstation Availability Signage 181 Bay – Physical Distancing Plan Path of Travel Wayfinding 11N-097A 11-NORTH-41C 11-NORTH-42F 11N-144A PHYSICAL DISTANCING AND 11N-100 11N-101 11N-106 11N-107 11N-112 11N-113 11N-118 11N-119 11-NORTH-41B 11-NORTH-42E 11N-124 11N-125 11N-130 11N-131 11N-136 11N-137 11N-141 11N-142 Floor Summ 11N-105 11N-108 11N-111 11N-114 11N-117 11N-120 11N-123 11N-126 11N-129 11N-132 11N-135 11N-138 11-NORTH-4111A-NORTH-41D11-NORTH-4121A-NORTH-42D Note: Workpoints include only workstations and private offices. 11-NORTH-41E 11-NORTH-42B Meeting rooms, Focus rooms, and Privacy Pods will not be cons 11N-099 11N-102 11-NORTH-41F 11-NORTH-42C 11N-140 11N-143 11N-144 Signage Legend 11N-097 1 Main Entrance 11N-098 11N-103 11N-104 11N-109 11N-110 11N-115 11N-116 11N-121 11N-122 11N-127 11N-128 11N-133 11N-134 11N-139 2 Do Not Enter 4 6 4 7 Typ. Dot (floor /wall /cabinet / 4 46 3 6' (2 m) apart, wait in line 11-WEST-32 11-NORTH-5111-NORTH-52 11N-145 4 Max (meeting rooms, offices & 11W-09611W-09511W-094 64 11W-09111W-09211W-093 46 6 44 44 11N-145A 5 One Way Arrowhead 11-NORTH-33 11-NORTH-45 11-NORTH-46 11-NORTH-43 11-NORTH-44 6 One Way Arrow 11-NORTH-35 6 11-NORTH-34 11-NORTH-36 11-NORTH-39 11-NORTH-40 11-NORTH-48 11-NORTH-50 11E-003 11E-002 11E-001 7 Available (seats) 11-N-110.1 11-N-115.1 44 11 NORTH-54 8 20 Second Small 11 9 20 Second Large 11-NORTH-39.1 11-NORTH-40.1 11-NORTH-43.1 11-NORTH-44.1 11-NORTH-471.11-NORTH-47 6 11E-004 11E-005 11E-006 10 Stay Healthy 11-160.1 7 Typ. 2 222 222 2 11 Not Available 46 6 (Oasis seats, washroom sinks, 11W-09011W-08911W-088 6 1 5 11 8 5 6 11-EAST-03 4 11E-009 11E-008 11E-007 14 Face Mask 7 Typ. 4 66 6 11E-010 11E-011 11E-012 Hand Sanitizing Sta 11 6 8 11-EAST-03.1 11E-015 11E-014 11E-013 11W-08511W-08611W-087 11-WEST-30 66 11 11 11-160 4 Location 11W-08411W-08311W-082 11 6 6 Entry/ exit points 11-WEST-30.1 11 11-EAST-04 Floor Washroom Doors 11W-07911W-08011W-081 4 11 6 6 Oasis, Serveries 11W-07811W-07711W-076 11 Strategic touch points 11-WEST-29 2 8 11 11W-07311W-07411W-075 11-SOUTH-15.1 11 DISCLAIMER: 11W-07211W-07111W-070 8 11E-016 11E-017 11E-018 ©2020 Jones Lang LaSalle IP, Inc. All rights reserve 8 sources deemed reliable; however, no representat 66 2 11-EAST-05 accuracy thereof or results. The information is crea spreading infectious disease and viruses. There is n 4 suggestions will decrease or eliminate the risks of s information is merely a suggestion and should be i 4 11E-021 11E-020 11E-019 individual. 11-WEST-28 11 66 11E-022 11E-023 11E-024 Building Address: 181 Bay Street 11E-027 11E-026 11E-025 Building ID: CAN-D110 6 6 6 11-EAST-06 11E-028 11E-029 11E-030 Floor ID : 011 6 5 Date: July 14th, 2020 64 Prepared By: AP 6 4 6 6 44 44 11W-06711W-06811W-069 11-SOUTH-12 11-EAST-07 11-EAST-08 11W-06611W-06511W-064 11-SOUTH-22 11-SOUTH-18 11S-063A 11-WEST-27 11-SOUTH-23 11-SOUTH-17 11-SOUTH-14 11E-033 11E-032 11E-031 11S-063 4 Typ. 11-SOUTH-15 11 4 6 11-SOUTH-2511-SOUTH-24 4 11 44 6 11-SOUTH-21 1-SOUTH-2011-SOUTH-19 6 11-SOUTH-13 11E-034A 6 4 6 11-EAST-09 444 44 UP 11E-034 11-EAST-11 7 Ty1p1.S-047 11S-048 11S-049 11S-050 11S-039 11S-040 11S-04111S-042 4 11S-046 11S-045 11S-044 11S-043 11S-061 11S-060 11S-057 11S-056 11S-053 11S-052 9 6 11 6 11S-062 11S-059 11S-058 11S-055 11S-054 11S-051 11 11-WEST-26 11-SOUTH-16 11S-038 11S-037 11S-03611S-035 11-EAST-10 11-SOUTH-16A 10 RBC Workplace Re-entry Guideline Physical Distancing Solution Identify Strategy 7'-6\" 6'-0\" Seat Available Seat Unavailable 6'-0\" from person to person (shoulder to shoulder) Path of Travel Red workspaces will not be occupied due to overlapping physical distancing circles

Annual Report | 2020 29 Sourcing & Supplier Management

Annual Report | 2020 30 Sourcing & Supplier Management 349 21 suppliers tracked major sourcing for compliance initiatives across all four RBC global regions successfully delivered >CA$4MM contribution to guaranteed savings KPI Highlights Accomplishments - Daily disinfection at over 1,200 sites - Weekly disinfection at over 1,300 RBC offsite ATMs • JLL Supplier Management successfully achieved - National rollout of hand sanitizer programs at all our Supplier Compliance KPI, effectively managing Canadian RBC locations compliance requirements for 349 suppliers across 4 • Supported the rollout of a queue management global regions. program as part of COVID-19 response providing solutions for dividers and ticket-taking systems at 300 • The EMEA Sourcing Manager effectively consolidated 120 locations nationally. distinct FM services spread across 8 countries leveraging only 34 JLL-preferred suppliers. • The North American Sourcing Team managed Looking Ahead… furniture, carpet and trade desk RFPs for the RBC Minneapolis Project delivering greater than CA$2.9MM in • Janitorial category review: The most significant cost reductions. sourcing initiative in 2021 is the janitorial services RFP, which is the most important category operationally. The • The North American Sourcing Team also supported an RFP is significant category-wide reassessment of our architectural sourcing event for an upcoming relocation cleaning and disinfecting procedures for our retail and project in Sydney, Australia, seamlessly coordinating office properties. with local stakeholder and the RBC CRE Project Team based in London. • Effectively implemented national COVID-19 response programs in Canada for:

Annual Report | 2020 31 • 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.

Annual Report | 2020 32 Finance & Accounting

Annual Report | 2020 33 Finance & Accounting CA$813MM CA$1.05MM CA$43MM CA$138MM Opex Canada CAP Savings (Canada) Capex (JLL projects – Canada) US$145MM CA$4.3MM US$2.1MM CA$23MM Opex US (Canada) (US) Opex reduction due (T&T projects in Canada) CA$60M to closures US43MM (EMEA) COVID-related (T&T projects in US) additional costs Highlights Accomplishments • Days-to-pay LI: 99% of non-project invoices processed within 60 days vs 95% KPI • Our team attained its first full year of IFRS 16 compliance • All monthly reporting, forecasts and budgets were for the global RBC portfolio submitted within required timelines — 2,039 leases recognized for IFRS16 and 356 leases for • As part of our globalization process, EMEA monthly FASB (ASC 842) financial reporting, budgeting and forecasting were — The Accretion & Amortization lease cost for 2020 realigned with those in North America stands at: CA$86.9M for RBC Canada, CA$61.6M for • As the pandemic spread, reporting of costs related RBC US/CNB, and CA$27.8M for international to COVID-19, reduction of operating expenses due portfolios including EMEA, APAC and CALA. to closures and various urgent ad-hoc requests were • We successfully met the new KPI for paying construction promptly carried out throughout the year. This was invoices in Ontario (Canada), based on the New Prompt highly appreciated by RBC Payment Act. • Managed IFRS 16 for Global RBC portfolio including — 99% and 100% of invoices were paid in Q3 and Q4 EMEA, APAC and CALA respectively within 28 days from the receipt date (at • Created RBC Global FY2021 Forecast for all real estate target). This is a huge improvement on the situation costs in North America and landlord charges in EMEA, a year ago when project invoices were paid within 41 CNB, CALA, APAC days on average. • Performed intensive regression testing for Compliance module in Manhattan

Annual Report | 2020 34 • Started working with CNB on synergies in financial tasks • Improve Manhattan Compliance module performance through continuous testing, functionality enhancements • Further value-added tasks earmarked for transition to and system improvements JLL Finance 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 of RBC ARO liability • Realign global financial reporting with the North American standard

Annual Report | 2020 35 US Overview

Annual Report | 2020 36 US Overview Accomplishments cases reported by RBC and those reported by landlords (LL) that impacted other tenants in the • During the COVID-19 pandemic, after the initial buildings where RBC leases space. lockdown, US soon allowed all offices to remain open under essential business status. In alignment with global ­ — Continuous tracking of building modifications to IFM protocols for preventive and reactive measures, our ­ services, access and hours of operation that impacted RBC offices US team maintained the required operational support ­ — Sought out opportunities for utility reductions for the entire US Portfolio. Weekly status reporting for the ­ resulting in over US$126M in energy saves for two of US Region included: our larger properties ­ — Response to 61 RBC presumptive and confirmed ­ — Track monthly COVID-related spend and accruals ­ positive cases requiring decontamination/ ­ — Reached out to 80+ janitorial service providers to ­ disinfecting ­ review and track decontamination capacity in the ­ — Ongoing tracking of confirmed COVID-19 cases within event of a confirmed case. Worked with LLs and ­ the branch and OP portfolio. This included both contracted vendors to respond to enterprise-directed cleaning enhancement protocols as well as

Annual Report | 2020 37 ­ decontamination services throughout the pandemic. US$1,000 for local food shelters at Thanksgiving and over ­ — The Occupancy Planning (OP) team coordinated $500 for local toy drives at Christmas. ­ and provided physical distancing floor plans for all • SLA completion rate of 95% was achieved in response to US locations and spearheaded the re-entry signage 3,125 US work orders. counts for each US site, ensuring all COVID-19 • Managed procurement and distribution of all PPE and Workplace Design Guidelines were followed. signage for all US office properties and branch locations. ­ — The FM team completed installation of over 5,000 — 47,560 3-ply disposable masks ­ signs at three major office properties. — 20,525 3-ply cloth reusable masks — 285,500 disposable gloves • The Guaranteed Cost Save KPI of US$1.3MM was achieved. • Our team coordinated about 20 Incident Advisory events — 1,272,100 disinfecting wipes including building power shutdowns and condenser — 86,160 bottles of 8 oz hand sanitizer water shutdowns impacting DCR supplemental cooling. — 28,072 signs Notifications were sent to branch personnel, RBC IT and BCM (Business Continuity Management) and the Incident Looking Ahead… Advisories were transitioned to a new Corrigo platform as of October 2020. • Phase IV Supplier Compliance Initiative was completed: • Minneapolis Gateway Project - Move Plan 73 suppliers were contracted and brought into • Development of a US Energy and Environmental Program compliance and 17 rationalized. • Continue progress on completing a full US portfolio • Efforts are on to embrace globalization efforts and the asset database and integrate that data with Corrigo One-Team model through participation in the first annual • CNB/RBC transformation efforts virtual RBC Race for the Kids, raising over US$600 from US JLL Team. Also coordinated virtual holiday gatherings • Corrigo program enhancements to improve efficiencies with RBC and One-Team service partners, raising over • Supplier Compliance and Rationalization efforts continue

Annual Report | 2020 38 EMEA Overview

Annual Report | 2020 39 EMEA Overview A year of change and learning in EMEA with RBC moving to 2019/20 are now well established and have collectively an outsourced model for IFM services and JLL taking over worked together to overcome the bigger challenges of operational delivery of key services across EMEA. projects Athena and Apollo. New colleagues transferred into JLL from RBC as part of Overall, a productive year despite all the challenges. Below a first generation TUPE. Despite some early concerns, the are a few accomplishments: transferred team has settled into JLL and is adjusting well to life on the other side of the industry. Accomplishments COVID-19 has caused very real challenges across the Account • 100 Bishopsgate Office in London was quickly making BAU more difficult than anybody could foresee, established despite JLL being engaged late on the but the EMEA team and the supporting supply chain has project and starting from behind. The RFP and tendering remained largely resilient with only small tactical operational process for IFM services (~ CA$6.5MM) was successfully issues prevailing at any time and no material drop in service. completed to ensure balance of best operational fit and value for money. The account team members who were all new to JLL in

Annual Report | 2020 40 • 100 Bishopsgate FM Commissioning cost challenges • Supply chain consolidation to maximize “value for closed out in collaboration with RBC money” across EMEA • Paris HR issues, which had implications for the whole • Restructure / rethink the EMEA Account team, based on EMEA Account closed out with a “hybrid model” – i.e. learnings from FY 2019-20, to reinforce its capabilities RBC retains the local FM team and JLL takes over the supply chain • Understanding RBC’s changing post-COVID requirements • Revised RBC baseline validated and signed off by RBC • Corrigo end user rollout early 2021 • 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 is 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

Annual Report | 2020 41 Human Experience Human Experience

Annual Report | 2020 42 Community Connections JLL has always participated in RBC Race for the Kids, an numbers started soaring within days and, by the race“ annual event to support Sunnybrook Hospital’s Project in weekend, there were more than 100 sponsors, participants Canada on the mental health of children and youth. and supporters from across the globe. Together, they raised more than CA$21,000, placing us among the Top This year, due to COVID, RBC Race for the Kids was organized Ten Fundraisers. as a global and virtual race. This meant that thousands of participants could come together virtually on the weekend “ In 2009, I ran in the inaugural RBC race for the Kids of October 17-18, 2020, to get active and raise funds for an and it has been amazing to see how far this race has amazing cause. Moreover, participants had the flexibility come over the years. This year, we had more people to jog, run, wheel or scoot their way around their chosen participate and donate than in any other year. 2020 distance – right in their neighbourhood or backyard too! has presented all of us with different challenges and it was great to see JLL come together for a great We saw this as an opportunity to engage our Account cause in support of our client RBC. globally. Setting a small goal to raise CA$2,500, we ran a simple email and Yammer marketing campaign. The – Holly Willenbrecht, One Team Captain, RBC Account.

Annual Report | 2020 43 “ Over the past 5 years we have seen a small group “ Thanksgiving & Holiday Party engage in raising money and running the event. JLL-US team’s traditional annual Thanksgiving Potluck The pandemic changed our outlook. It allowed us became a ‘virtual’ One Team event this year with about 22 to reach further because the run was not confined participants from JLL, RBC, C&W and T&T. Members were to just those in Toronto. We saw engagement in simply expected to grab their lunches and hop on to the fundraising and running the event right across call. They played “Thanksgiving Battle” (a holiday version of the globe and across other accounts. It was a great Family Feud) and raised over $1,000 for local “food shelves”. example of unity across JLL…coming together for They followed this up with a “One Team” Virtual Holiday a great cause and to support a valued client. 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 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. 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!

Annual Report | 2020 44 New Normal Challenge Leadership” in two RBC retail branches: 2900 Warden Avenue, Scarborough (Ontario) and 185 Griffin St. North, Smithville In May 2020, in an effort to keep our employees engaged, we (Ontario). These two branches were able to reduce energy challenged them to showcase their new normal in a short use by 36% and 25% respectively through careful application 2-3 minute video. Every week, three volunteers presented of proven conservation measures and fine-tuning of lighting their home office and their experience in a variety of shades: and HVAC systems. Four other branches located in North York, humour, horror, reflective and even motivational. Hamilton and Woodstock received honorable mentions. The campaign had an amazing 30-week run during which more than 70 participants shared their New Normal with the RBC and JLL, along with their partner Energy Metrics, also entire Account. received the CoreNet Global Remmy Award for the retail IoT/ smart devices program. These devices have been installed Industry Recognition in 571 RBC retail sites for remote controlling of basic HVAC During FY 2019-20, RBC and JLL were recognized by BOMA functions and more precise management of setpoints and and CoreNet - two leading real estate industry associations – setbacks. A major achievement of this strategy is significant for their remarkable contribution to sustainability. energy conservation of 9000 MWh. BOMA presented the Corporate Real Estate Sustainability Trailblazers (CREST) Award to RBC and JLL for “Performance

Annual Report | 2020 45 Onward and Upward...

Annual Report | 2020 46 CRE Goals Client Shareholder Operations Employee • Drive the evolution of • Leverage CRE’s scale • Enhance CRE’s brand • Evolve our three CRE EOS RBC’s workplace strategy and strategic market and reputation both workstreams to focus in alignment with the insights to make a internally and externally on critical issues such Future of Work (with HR, material contribution to through communication as role clarity, process Technology, EE, & STS) RBC’s efficiency on the and partnership through improvement, and • Expand and strengthen $1.8B cost base (with the re-launch of the CRE diversity and inclusion the CRE client Enterprise Efficiency relationship model & Procurement) Intranet Site and Quarterly • Support employee Client Newsletter learning and and increase client • Develop and mobilize • Fully implement our development through satisfaction scores a roadmap and plan global CRE Operating increased talent rotations • Deliver major CRE for RBC’s footprint that Model to better strengthen and secondments Program initiatives is aligned to workforce including Minneapolis, and business strategies our risk management and across CRE Caribbean, and Retail (including GTA, (Plaza Branch) on time Canada, Caribbean, US, efficiency as ONE CRE • Launch new CRE and under budget EMEA, APAC) supporting all platforms initiatives that allow us and regions to support one another, • Deliver programs strengthen collaboration, • Enable RBC’s response that will promote enhance our culture, to pandemic re-entry planning through the social responsibility, and drive learning integrated enterprise program (with Risk, sustainability and further and innovation (i.e., HR, T&O) RBC’s goals for climate CRELearns, CREServes change (with BMCC) CREMentors, and CRERecognizes) Despite all its challenges, FY 2019-20 was extremely gratifying These will be aligned with CRE’s 2021 Strategic Goals of as it helped unleash JLL’s potential. We now look forward to which the “One CRE Program” is a major priority. 2020-21 with new plans, new hopes and new programs.

Annual Report | 2020 47 2020 Goal Alignment Global Consistency Cost Efficiencies Standardization CRE initiatives and Savings and Continuous Improvement Enhanced L&D Framework Global Transformation Annual Cost Savings  Across Regions • COVID Specific Global Service Lines​ Diversity and Inclusion Pandemic Re-entry Planning • BAU Operational  Regional Delivery and Implementation • Supplier-based Playbooks, Processes, Reporting  Leverage Scale of Services – CNB/RBC Awards Thought D&I Social and Ongoing Explore Program Leadership Council celebrations communication 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.

Annual Report | 2020 48 ©2021 Jones Lang LaSalle IP, Inc. All rights reserved. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of Jones Lang LaSalle. The information contained in this document has been compiled from sources believed to be reliable. Jones Lang LaSalle or any of their affiliates accept no liability or responsibility for the accuracy or completeness of the information contained herein and no reliance should be placed on the information contained in this document.