February 8, 2013 Lydia Jacobs-Horton, Director, Global ... · Lydia Jacobs-Horton, Director, Global Facilities & Real Estate, GBS . ... Dipesh Shah … DIGITAL WORKPLACE ... solution

February 8, 2013 Lydia Jacobs-Horton, Director, Global Facilities & Real Estate, GBS

P&G at a Glance

• Founded

• Countries of Operations

• Countries Where Our Brands Are Sold

• Consumers Served by Our Brands

• FY2011-12 Net Sales

1837

75

180

4.6B

$83.7B

50 Leadership Brands

• Among the world’s best-known household names.

• Represent 90% of P&G sales, more than 90%

of profits.

• Includes 25 billion-dollar brands.

Our

Purp

ose

To improve the

lives of the world’s

consumers, now and for

generations to come.

Global Business Services Worldwide Operations

• GBS not just IT or HR… but all aspects of business

• Employee Services and Business Services across 75 countries

• Driving innovation and scale

F&RE at a Glance

Countries of Operations 75

Total Properties > 1,000

Office & Technical Center Properties 130

F&RE Employees 70

JLL Employees (excluding service staff, eg, dining , cleaning) 700

Responsible for Global: Real Estate Strategy & Transactions Office + Technical Ctr Operations Office + Technical Ctr Capital Projects

Jones Lang LaSalle at P&G

• Global Agreement est. 2003

• Facilities operations

• Hard & soft services, meeting

services, project

management, space &

occupancy planning

• 17MM SF fully managed

portfolio - office, tech ctr, salons

• F&RE IT

Facilities Management & Real Estate • Global Agreement est. 2008

• Portfolio Strategy and

Occupancy Planning

• Transaction Management

(buy, sell, lease)

• Lease Administration

• 130MM SF P&G Portfolio -

office/tech/plants/DCs

P&G Facilities & Real Estate

Jones Lang LaSalle Global Leadership Team

JLL Real Estate Services

Transaction Management

Portfolio Management

Jones Lang LaSalle Facilities Services

Facilities Operations

Soft Services & Employee Amenities

Project Management

Operational

Excellence is Base

10

• Support P&G business on a

highly reliable basis

• Exceed stewardship

objectives: Risk Mgmt,

Quality Assurance & Fiscal

Controls

• Protect, maintain and

increase long-term asset

value of P&G’s property

• Innovate to drive business

effectiveness and employee

productivity

Operational Imperatives

Applying P&G Proven Business Model to Improve Results

Innovation

Winning with

Productivity

Improving

Focus on

40/20/10

• Population is forecast to grow

800 million people with ~95%

from developing markets

• ~1.4 billion new middle class

consumers in developing

markets by 2020

• Americans currently account for

20% of middle-class spending

& are expected to represent

only 8% by 2030

Developing Markets Market Growth Potential

FY 09 FY 10 FY 11 FY 12

Developing

Developed

FY P&G Results

Organic Sales Growth led by Developing Markets

Developing Markets Start Ups

FY ’13 & ‘14

New Plant

Start-ups

• China

• Brazil

• Indonesia

• Nigeria

Technical

Centers

• Singapore

New Category

Start-ups

• Poland

• Venezuela

• India

Planning Centers

• Cairo

• Warsaw

• China

• San Jose

Regional Demographics

JLL

Notes:

• JLL Excludes: dining services, cleaning, mechanics

• CEEMEA & LA - highest dispersion

• CEEMEA & Asia - highest complexity, demand

F&RE

Challenge: Develop F&RE expert

resources in areas of highest complexity

Asia

CEEMEA

LA

NA

WE

Asia

CEEMEA

LA

NA

WE

Improving Productivity and

Creating a Culture of Productivity

$10

billion $6B

COST OF GOODS

$3B OVERHEAD

$1B MARKETING

Our productivity and cost savings

plans will help fuel top-line growth,

ensure our consumer value

propositions are superior,

overcome macro headwinds and

deliver better bottom-line growth

$3 bn Overhead Opportunity

Organization Design & Simplification

• Eliminating duplication of work

• Simplifying through Digitization

• Optimizing number of Business

Units & Functions

• Optimizing our Global Footprint

Productivity Plans

Overhead

Strategic Portfolio Management

Enables Real Estate Optimization in a way

that…

• Enables faster/better decision making via enhanced analytics, clear accountability, stronger business unit connections and proactive planning.

• Establishes on-going, proactive strategic real estate plans developed in partnership with business leaders.

• Focuses real estate decisions on P&G as an enterprise versus individual business units.

REAL ESTATE NETWORK STRATEGY SHEET

NETWORK DETAIL

NETWORK MASTERPLAN

• 1-2 YEAR MASTERPLAN HIGHLIGHTS – Maintain Option on land adjacent to Rummels DC – Extend option if necessary• 3-5 YEAR MASTERPLAN HIGHLIGHTS – eliminate NGW & Buncher and build-to-suit in West Branch; optimize GBO outside

warehouses – optimize Corporate Park distribution center• CROSS-BU OPPORTUNITIES/PLANS – have considered most recently with Home Care and Brantford CDC; none yet. Pet Care to

take space at Swing Road for OND and considering long-term use.

OPPORTUNITIES/RECOMMENDATIONS/HELP NEEDED

•CP3 to be subleased to CM. COP/reco in progress• IC/GBO – evaluate network optimization at both networks (per IC) – ON HOLD• IC – what can we do to accelerate savings? Per Cheryl, Skip and Darin are looking at options to accelerate savings.• Buncher termination option extended 1 yr (Dec ‘11) with plan to be out by Feb 2013. NEW ROOF APPROVED ($3.5MM)!

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

0.295 0.06 0 0.918 TBA

Total MDO RE Cost Savings $MM (Hard Savings only)

NA MDO TIER 2 BH&WB NETWORK (Various locations, USA)

Portfolio Snapshot:

MDO AD Finance Mgr HSE Mgr MDO Engineering Operations Mgr

Cheryl Mckettrick Carla Allen/James Chung

Sean Broderick Andy Poole/Carlos Shipley

Skip Tappan

Facility Size (sqft) Leased/Owned/3PL Expiration Operator Lease $/yr ** AU KPI (10/11 FY)

West Branch DC 781,800 Owned n/a Schenker n/a 0.37

Rummels DC 514,957 Leased 6/19/2017 Schenker 1,543,263 0.37

Buncher DC 346,062 Leased 12/31/2016 Schenker 1,104,135 0.37

NGW DC 350,000 Leased 5/31/2013 Schenker 1,190,000 0.37

CP2 504,000 Leased 1/31/2017 Schenker 1,750,303 0.32

CP3 243,800 Leased 12/31/2012 Schenker 969,827 0.32

BROWN SUMMIT ONSITE 820,000 Owned n/a P&G n/a 0.32

SWING RD ONSITE DC ~210,00 Owned n/a n/a n/a

Owning BU: MDO - NA

Site Contact(s):

** Base rent only

Cube fill rate

Pallets/m3 Capacity Utlization

Asset $/pallet

tba tba tba tba

AU KPI Measures (TBA)

leased41%

Owned59%

*NA DC SPACE~25.5 MM sqft

*All DC space, incl. @plants

$29.2MM/yr

leased75%

Owned25%

*MDO TIER 2 SPACE~7.2MM sqft

*MDO managed space only

Innovation in Analytics

Howard Berger Managing Partner, Realcomm

Top 45 People to Watch in 2013 We believe that with the new paradigm shift towards automation and technology changing the way we manage and operate commercial real estate, it is the commitment of these visionaries that will pave the way for future success. Here are the individuals and teams to watch in 2013: … Teams:

… P&G:: Dave Tufts, Jon Hodgdon JLL: Dave Johnson, Dan Probst, Chris Browne, Dipesh Shah …

DIGITAL WORKPLACE CURRENT BEST APPROACH DRAFT

Innovation in Workplace Design

“It’s time to go beyond current organizational flexibility programs and approach Flexibility as a necessary broad scale business strategy.”

Bob McDonald,

Chief Executive Officer

01 INTRODUCTION

P&G DIGITAL WORKPLACE page 23

The future workspace promotes collaboration, embodies flexibility and provides advanced technologies.

It supports a global workforce allowing choice and striving for no waste of space, time or resource.

It empowers employees to choose the workspace that best fits their need at anytime.

The new digital workplace design puts the employee at the center of an integrated solution to enable them to work at peak performance – wherever and whenever they choose

WIRELESS

DATA, VOICE

AND VIDEO

SOLUTION

DIVERSE

COLLABORATIVE

ENVIRONMENT

HEALTHY AND

SUSTAINABLE

ELEMENTS VISUALLY

STIMULATING

DESIGN

THE SERVICE

EXPERIENCE

WORKPLACE

BEST PRACTICES

EMPLOYEE

VISION

Work is what you do, not

where you do it.

01 INTRODUCTION

P&G DIGITAL WORKPLACE page 23

P&G DIGITAL WORKPLACE page 24

THE WAY WE WORK IS CHANGING

New technologies, shifting

demographics, and a Global

marketplace are requiring the

workplace to quickly change and

adapt. In order to stay ahead of

the competition we need to have

our workplaces ready to support

the following demands:

Variety

Interaction Transparency

Collaboration

Innovation

Mobility

User Experience

Flexibility

Productivity

Wellbeing

Sustainability

02 DIGITAL WORKPLACE

P&G DIGITAL WORKPLACE page 24

P&G DIGITAL WORKPLACE page 25

03 INTEGRATED DESIGN

DW

AN INTEGRATED & HOLISTIC APPROACH

The concept of Digital Workplace is an integrated and holistic approach using a combination of Space Design, Skills and Infrastructure. The objective of reducing real estate costs, optimizing investments in modern technologies and improving organizational flexibility to respond to current and future workforce demands.

P&G DIGITAL WORKPLACE page 25

26

DWP Application

Workplace Practices

• Program promotes flexibility and productivity

• Ergonomically friendly space

• Variety of work spaces used throughout the

work day

• Personal Well Being Score +12%

Digital Tools

• Lync Phone

• Skills Training

• Digital lockers, chargers anywhere, workstations

• include 22” Monitors, keyboard, Mouse, Risers

Space Design

• No enclosed offices

• Few assigned offices

• Desk sharing 120 – 140%

• 2x Collaboration seats

Our link to another P&G Top Priority

Environmental

Sustainability

Product

Innovation

Operational

Excellence

• F&RE resources are prepared

for P&G’s shifting footprint and

increasing focus on

optimization

• Digital Workplace will bring us

to top of Peer Group in

workplace innovation and

productivity

Applying P&G Proven Business Model to Improve Results