Slide 1: ROLLINS, INC. The leader in pest control
The leader in pest control “Pest control down to a science” ROLLINS, INC. Eddie Northen Vice President, Chief Financial Officer, & Treasurer
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 • 20 consecutive years of improved earnings • Leading pest and termite control company • Dividend increased a minimum of 12% for 16 consecutive • Powerful ORKIN brand name – world renown years • Over 2.1 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 xT e CoM 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 1941 door Orkin treated military establishments for 1964 pest control during WWII Rollins buys Orkin for $62 million 1968 Rollins begins trading on the NYSE 1995 First Orkin franchise opens 1999 Orkin
Slide 7: Key Events in Our History (cont.)
Key Events in Our History (cont.) 2005 Rollins acquires The Industrial Fumigant 2008 Company Rollins acquires HomeTeam Pest Defense and Crane Pest Control 2014 Rollins acquires Australian based Allpest WA and Statewide Pest Management 2015 Rollins acquires Critter Control, Inc. 2016 Rollins acquires
Slide 8: ROLLINS, INC. A Family of Brands
ROLLINS, INC. The leader in pest control “Pest control down to a science” A FAMILY OF BRANDS Presented by Eddie Northen 8
Slide 9: Industry
Industry Growth Awareness Customers Market $18 billion industry Increasing health US, roughly 70% US market is 20,000 globally with an awareness residential US and 30% companies; Highly expected growth rate commercial fragmented market of 4-5% annually; $12+ billion US 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 40% 42% 18% <1% Commercial Residential Termite Other Retention 88% - 90% Retention 76% - 85% Retention approximately 85% 11
Slide 12: General Pests
General Pests Mosquitoes Termites Mosquito control begins with a To prevent termites in your thorough inspection and structure, eliminate moisture treatment recommendations problems, and remove food such as removing conducive sources. This will help make conditions your structure a less attractive t
Slide 13: Wildlife
Wildlife Rats Snakes Rats often are attracted to A step that can help prevent homes for the 3 essentials: snakes is removing as much of Food, Water, & Shelter. their habitat as possible. Homeowners should reduce or Without a comfortable habitat, eliminate as many of these snakes will relocate source
Slide 14: Residential Business
Residential Business Focused On Sustained, Profitable Growth • Rising concern over health, safety and protection of property Companies offering Residential • Better informed consumers, targeting specific segments services • Internet providing accelerated growth • Orkin, LLC • Recession resistant – n
Slide 15: Mosquito: Strategic Growth Opportunity
Mosquito: Strategic Growth Opportunity $16.0 $13.7 $14.0 Mosquito Revenue History (in millions) $12.0 $10.3 $10.0 $8.3 $8.0 $7.6 $7.0 $6.0 $4.0 $3.1 $2.5 $2.3 $2.4 $2.0 $0.9 $0.0 2013 2014 2015 2016 2017 $7.9 $10.1 $10.6 $13.4 $16.1 Residential Commercial 15
Slide 16: Commercial Business
Commercial Business Focused On Sustained, Profitable Growth • No. 1 commercial pest control provider in North America – over 20% Companies offering Commercial market share • Orkin, LLC services • Increasing demand driven by health and safety concerns • Orkin Canada • Worldwide service network with 1
Slide 17: Bedbug: Strategic Growth Opportunity
Bedbug: Strategic Growth Opportunity $90.0 $80.0 Bed Bug Revenue History (in millions) $70.0 $60.0 $46.0 $49.5 $50.0 $42.3 $39.3 $40.0 $33.3 $33.5 $32.6 $30.0 $30.0 $24.6 $20.8 $20.0 $10.0 $0.0 2013 2014 2015 2016 2017 $54.1 $63.9 $72.3 $79.5 $82.1 Residential Commercial 17
Slide 18: Termite & Ancillary Business
Termite & Ancillary Business Focused On Sustained, Profitable Growth Companies offering Termite & • Termite damage -- $5.6 billion annually, a real threat to homeowners • Strong recurring revenue and high retention Ancillary services • Invigorated sales force, utilizing digital technology • Orkin, L
Slide 19: 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 20: Commitment to Training
Commitment to Training 27,000 sq. ft. state of Named to Training Attracts regulators, the art Learning & Magazine “ #64 of educators, & Training Center Top 125 Training university unique to pest control Companies” for the researchers industry, including past 13 years Termite & Commercial training fa
Slide 21: Global Training Communication
Global Training Communication Web-based employee training network utilized by employees and franchises worldwide 21
Slide 22: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions United States Headquarters Location 22
Slide 23: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions Canada Headquarters Over 300 branches Location across Canada 23
Slide 24: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions Australia Headquarters Location 8 Murray Franchises 3 Scientific Franchises 11 Total Franchises 24
Slide 25: Growth Through Strategic Acquisitions
Growth Through Strategic Acquisitions Headquarters United Kingdom Location 25
Slide 26: Global Strategic Franchises
Global Strategic Franchises Worldwide 48 Orkin Domestic Franchises 82 Orkin International Franchises 11 Orkin Australia Franchises 89 Critter Control Franchises 230 Total Franchises North America East Asia • South Korea • China • Kingdom of Cambodia • Mongolia Central America • Mexico Middle East Oc
Slide 27: Technology: BOSS – Branch Operating Support System
Technology BOSS – Branch Operating Support System 27
Slide 28: Virtual Route Management
Technology Virtual Route Management www.yourcompanyname.com www.yourcompanyname.com 28
Slide 29: Orkin 2.0
Technology Orkin 2.0 Benefits Include: • Improved productivity • Reduced fleet costs • Improved Customer Service • Reduced Turnover 29
Slide 30: Revenue Growth 2007-2017
Revenue Growth 2007-2017 $1,700,000,000 $1,550,000,000 Average Growth Rate = 5.7% $1,400,000,000 $1,250,000,000 $1,100,000,000 $950,000,000 $800,000,000 30
Slide 31: Net Income 2007-2017
Net Income 2007-2017 $200,000,000 $180,000,000 Average Growth Rate = 11.3% (12.0% Adj for Tax) $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 Net Income Tax Adjustment 31
Slide 32: Depreciation & Amortization of Intangibles
Depreciation & Amortization of Intangibles $35 In millions $30 $29 $27 $27 $26 $25 $25 $25 $25 $20 $19 $17 $15 $14 $10 $5 $0 2013 2014 2015 2016 2017 Depreciation Amortization 32
Slide 33: Strong Free Cash Flows Growth
Strong Free Cash Flows Growth $140.00 $122.00 $120.00 $109.00 $100.00 $89.66 $91.76 $90.10 $84.44 $78.38 $80.00 $75.75 $65.66 $65.11 $60.00 $39.50 $40.00 $33.08 $28.74 $24.70 $18.63 $20.00 $0.00 2013 2014 2015 2016 2017 Capital Expenditures Dividend Payout Free Cash Flow 33
Slide 34: Dividend Record
Dividend Record $0.70 Increase at 12% or more in the past 16 years $0.56 $0.60 $0.50 $0.46 $0.50 $0.42 $0.40 $0.40 $0.35 $0.32 $0.30 $0.30 $0.28 $0.24 $0.20 $0.10 $0.00 2013 2014 2015 2016 2017 Dividends Paid (excluding special dividends) Dividends Paid (with special dividends) All dividend data is
Slide 35: Diluted Earnings Per Share Growth
Diluted Earnings Per Share Growth $1.00 $0.90 $0.05 $0.80 $0.70 $0.60 $0.50 $0.40 $0.82 $0.77 $0.70 $0.30 $0.63 $0.56 $0.20 $0.10 $0.00 2013 2014 2015 2016 2017 EPS Tax Adjustment All diluted earnings per share data is presented post-split for the three-for-two stock split effective March 10, 2015 f
Slide 36: ROL Stock Performance
ROL Stock Performance $50 $40 Average Growth Rate = 22.7% $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 36
Slide 37: ROL 10 Year Stock Performance vs. S&P 500 Index
ROL 10 Year Stock Performance (with dividend reinvested) vs. S&P 500 Index Source: FactSet Rollins, Inc. (ROL-USA) [Delayed] S&P 500 (SP50-USA) [Delayed] 515.64 500 400 300 200 157.85 100 90 80 70 60 50 40 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 10-Year Performance w/ dividends Reinvested (12/31/200
Slide 38: Thank You
Thank You For questions, please reach out to Julie Bimmerman Julie Bimmerman VP, Finance and Investor Relations (404) 888-2103 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: 5.