Slide 1: Rollins, Inc - The leader in pest control
ROLLINS, INC The leader in pest control “Pest control down to a science”
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, the effect of the future adoption of recent accounting pronouncements on the Compan
Slide 3: The Rollins Brand
The Rollins Brand Continued Growth Our Company • 21 consecutive years of improved earnings • Leading pest and termite control company • Dividend increased a minimum of 12% for 17 • Powerful ORKIN brand name – world renown consecutive years • Over 2.4 million residential and commercial • 5% or greate
Slide 4: Rollins: Then and Now
Rollins: Then and Now “We were in a lot of really poor businesses before we found a good business.” ----O Wayne Rollins 4
Slide 5: Our History
Our History - TOM 1-800-800-ORKIN
Slide 6: Key Events in Our History
Key Events in Our History 1901 Orkin began operations; Otto Orkin “The Rat Man” sold poison door to door 1964 Rollins buys Orkin for $62 million 1968 Rollins begins trading on the NYSE 1995 First Orkin franchise opens 1999 Orkin acquires Canadian Based PCO Services 2000 First Orkin international fra
Slide 7: Key Events in Our History (cont.)
Key Events in Our History (cont.) 2014 Rollins acquires Australian based Allpest WA and 2015 Statewide Pest Management Rollins acquires Critter Control, Inc. 2016 Rollins acquires Australian based Murray Pest Control and Scientific Pest Management and UK 2017 based Safeguard Pest Control Rollins acq
Slide 8: A Family of Brands
ROLLINS ) A FAMILY OF BRANDS CANADA AUSTRALIA 22 NORTHWEST wesrery EB srurech Stan} XTERMINATING DA LESTERN . — WILDLIFE SERVICE 3 CLARK § ¢ f ane (TU THE PEST CONTROL PEOPLE Cae cw AN , 4 If SERRA KESTREL PEST CONTROLLTD rare LWOL Gus} ) we PEST SERVICES
Slide 9: Industry
Industry Growth Awareness Customers Market $18 billion industry globally with an Increasing health US, roughly 70% residential US market is 20,000 expected growth rate of 4-5% awareness US and 30% commercial companies; Highly fragmented annually; $12+ billion US market Competitors Evolution 3 larges
Slide 10: Rollins Value Proposition
Solid track record of Shareholder Value creation Rollins Value Proposition Competitive Advantage Brand and best in class customer experience Recession Resistant 80% of revenues are recurring Significant Insider Ownership Strong management and excellent depth Strong Balance Sheet Focus on sustained p
Slide 11: Revenue & Retention by Business Line
Revenue & Retention by Business Line 39% 42% 18% <1% Commercial Residential Termite Other Retention 88% - 90% Retention 76% - 85% Retention approximately 85% * Updated annually 11
Slide 12: General Pests
General Pests Mosquitoes Termites Mosquito control begins with a To prevent termites in your thorough inspection and treatment structure, eliminate moisture recommendations such as problems, and remove food removing conducive conditions sources. This will help make your structure a less attractive t
Slide 13: Wildlife
Wildlife Rats Snakes Rats often are attracted to homes A step that can help prevent for the 3 essentials: Food, Water, & snakes is removing as much of Shelter. Homeowners should their habitat as possible. Without a reduce or eliminate as many of comfortable habitat, snakes will these sources as poss
Slide 14: Residential Business
Residential Business Focused On Sustained, Profitable Growth Companies offering Residential • Rising concern over health, safety and protection of property services • Better informed consumers, targeting specific segments • Internet providing accelerated growth • Orkin, LLC • Recession resistant – n
Slide 15: HomeTeam Pest Defense
HomeTeam Pest Defense VISION – To deliver a delightful experience every time for a lifetime PURPOSE – Protecting homes and improving communities • Of the Top 25 Builders in 2017, HomeTeam provides service to 23 of 25. • As of 2018, HomeTeam has installed TAEXX in over 1,000,000 structures • For the
Slide 16: Mosquito: Strategic Growth Opportunity
Mosquito: Strategic Growth Opportunity $25.0 Mosquito Revenue History $19.2 $20.0 (in millions) $15.0 $13.7 $10.3 $10.0 $7.6 $8.3 $5.0 $2.5 $2.3 $3.1 $2.4 $2.8 $0.0 2014 2015 2016 2017 2018 $10.1 $10.6 $13.4 $16.1 $22 Residential Commercial 16
Slide 17: Commercial Business
Commercial Business Focused On Sustained, Profitable Growth Companies offering Commercial • No. 1 commercial pest control provider in North America – over services 20% market share • Orkin, LLC • Increasing demand driven by health and safety concerns • Orkin Canada • Worldwide service network with 1
Slide 18: Bedbug: Strategic Growth Opportunity
Bedbug: Strategic Growth Opportunity $90.0 $80.0 Bed Bug Revenue History (in millions) $70.0 $60.0 $49.5 $49.3 $50.0 $46.0 $39.3 $42.3 $40.0 $33.5 $32.6 $32.1 $30.0 $30.0 $24.6 $20.0 $10.0 $0.0 2014 2015 2016 2017 2018 $63.9 $72.3 $79.5 $82.1 $81.4 Residential Commercial 18
Slide 19: Termite & Ancillary Business
Termite & Ancillary Business Focused On Sustained, Profitable Growth Companies offering Termite & • Termite damage -- $5.6 billion annually, a real threat to Ancillary services homeowners • Orkin, LLC • Strong recurring revenue and high retention • HomeTeam Pest Defense • Invigorated sales force, ut
Slide 20: Wildlife Control
Wildlife Control Wildlife – Accelerating Our Growth Opportunity • North America Wildlife Category Opportunity of $500M+ • Critter Control and Trutech are #1 and #2 companies in the category • Immediate synergy created by integrating marketing and training Continued Growth • Built-in acquisition netw
Slide 21: Commitment to Training
Commitment to Training 27,000 sq. ft. state of the art Named to Training Magazine Learning & Training Center Attracts regulators, “ #64 of Top 125 Training unique to pest control educators, & university Companies” for the past 13 industry, including Termite & researchers years Commercial training fa
Slide 22: Global Training Communication
Global Training Communication Web-based employee training network utilized by employees and franchises worldwide 22
Slide 23: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions Headquarters Location United States 23
Slide 24: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions Headquarters Canada Location Over 30 branches across Canada 24
Slide 25: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions Australia Headquarters Location 8 Murray Franchises 2 Scientific Franchises 10 Total Franchises 25
Slide 26: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions United Kingdom Headquarters Location 26
Slide 27: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions Singapore Headquarters Location 27
Slide 28: Global Strategic Franchises
24 North & South America 49 Orkin Domestic Franchises 86 Orkin International Franchises Global Strategic Franchises 28 Europe & Asia 10 Orkin Australia Franchises 1 Australia 83 Critter Control Franchises Worldwide 4 Africa 228 Total Franchises 57 Total Countries Europe • Netherlands • Ireland • Por
Slide 29: Technology: BOSS – Branch Operating Support System
Technology BOSS – Branch Operating Support System 29
Slide 30: Technology: Virtual Route Management
Technology Virtual Route Management 30
Slide 31: Technology: Orkin 2.0
Technology Orkin 2.0 Benefits Include: • Improved productivity • Reduced fleet costs • Improved Customer Service • Reduced Turnover 31
Slide 32: Technology: Science
Technology SCIENCE. Dumpster Drain Fly Appearance: About 1/16-inch long with a light | _9Fay ortan body and lighter-colored wings. The body and the wings are covered with long hairs, giving the fly a fuzzy appearance. When at rest, the wings are folded over the body in 2 characteristic roof-like man
Slide 33: Technology: InSite
Technology InSite ‘warn 176742 204 Floor LEGEND roman Monto REMSED 429201 ORIN Cormecial Senacor fw -NWerkOreers: = K 5 er 8813 RATION Service Callbacks kad Google 857 Advanced ~ Q searenvy * Cheek ese control Demo Client, Ine. customer Responsible» 33
Slide 34: Revenue Growth 2009-2018
Revenue Growth 2009-2018 $1,900,000,000 $1,750,000,000 $1,600,000,000 $1,450,000,000 $1,300,000,000 $1,150,000,000 $1,000,000,000 34
Slide 35: Net Income 2009-2018
Net Income 2009-2018 $240,000,000 $220,000,000 Average Growth Rate = $200,000,000 12.9% (11.6% Adj for Tax) $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000
Slide 36: Depreciation & Amortization of Intangibles
Depreciation & Amortization of Intangibles $40 $36 In millions $35 $30 $30 $29 $27 $27 $26 $25 $25 $25 $20 $19 $17 $15 $10 $5 $0 2014 2015 2016 2017 2018 Depreciation Amortization 36
Slide 37: Strong Free Cash Flows Growth
Strong Free Cash Flows Growth $180.00 $160.00 $152.7 $140.00 $122.0 $120.00 $109.0 $107.1 $100.00 $89.7 $91.8 $90.1 $84.4 $80.00 $75.8 $65.1 $60.00 $39.5 $40.00 $33.1 $28.7 $24.7 $27.1 $20.00 $0.00 2014 2015 2016 2017 2018 Capital Expenditures Dividend Payout Free Cash Flow 37
Slide 38: Dividend Record
Dividend Record $0.50 $0.47 $0.45 Increase at 12.5% or more in the past 17 years $0.40 $0.38 $0.37 $0.34 $0.35 $0.31 $0.30 $0.28 $0.27 $0.25 $0.23 $0.21 $0.20 $0.18 $0.15 $0.10 $0.05 $0.00 2014 2015 2016 2017 2018 Dividends Paid (excluding special dividends) Dividends Paid (with special dividends) A
Slide 39: Diluted Earnings Per Share Growth
Diluted Earnings Per Share Growth $0.80 $0.70 $0.60 $0.03 $0.50 $0.40 $0.71 $0.30 $0.51 $0.55 $0.47 $0.20 $0.42 $0.10 $0.00 2014 2015 2016 2017 2018 EPS Tax Adjustment All diluted earnings per share data is presented post-split for the three-for-two stock splits effective March 10, 2015 and December
Slide 40: ROL Stock Performance
ROL Stock Performance $50 Average Growth $40 Rate = 21.7% $30 $20 $10 $0 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 201 8 40
Slide 41: Rollins 10-year stock performance vs. S&P 500 Index
Rollins, Inc. 10-year stock performance (with dividends reinvested) vs. S&P 500 Index 12/31/2008 – 12/31/2018 10-Year Performance w/ dividends Reinvested (12/31/2008 – 12/31/2018): Total Annualized Rollins Inc. 573.9% 21.0% S&P 500 Index 177.5% 10.8% Source: FactSet 41
Slide 42: Growth and the Future of Rollins
Growth and the Future of Rollins 42
Slide 43: Growth and the Future of Rollins: People
Growth and the Future of Rollins People 43
Slide 44: Thank You
Thank You For questions, please reach out to Julie Bimmerman Julie Bimmerman VP, Finance and Investor Relations (404) 888-2000 jbimmerman@rollins.com Telephone Location Website 404-888-2000 2170 Piedmont Rd, NE www.rollins.com Atlanta, GA 30324 investorrelations@rollins.com United States Updated: 4.