Rollins, Inc. · NYSE:ROL
Rollins — Investor Day (2024)
49 slides from Rollins's investor day presentation, 2024
Slide 1: 2024 Investor and Analyst Conference
2024 INVESTOR AND ANALYST CONFERENCE
Slide 2: Agenda
2024 INVESTOR AND ANALYST CONFERENCE AGENDA Presentations Embracing “The Art of Change” Jerry Gahlhoff | CEO & President The Power & Scale of the Orkin Brand Pat Chrzanowski | President Orkin USA Our Multi-Brand Approach + Brand Leadership Panel Ken Krause | EVP & CFO Brady Camp | President HomeTeam
Slide 3: Executive Bios
EXECUTIVE BIOS Jerry E. Gahlhoff, Jr. Chief Executive Officer and President Jerry E. Gahlhoff Jr. has served as a Director of Rollins, Inc. since 2021. In 2022, Mr. Gahlhoff was elected by the Board of Directors to serve as Chief Executive Officer of the Company, effective January 1, 2023, in additi
Slide 4: Executive Bios: Chrzanowski, Pearson, Glover
Patrick J. Chrzanowski President Orkin USA Patrick J. Chrzanowski was promoted to President of Orkin USA in January, 2023, overseeing operations in the United States. Mr. Chrzanowski has served as Division President for the Orkin Midwest Division from 2018 to 2022 as well as the Orkin Northeast Divi
Slide 5: Executive Bios: Camp, Dunn, Quinn
Samuel B. Camp (Brady) President HomeTeam Pest Defense and Fox Pest Control Samuel B. Camp (Brady) has more than forty years of experience in the pest control industry and has served as the President of HomeTeam Pest Defense since 2016. Prior to this, Mr. Camp served in a number of roles of increasi
Slide 6: Cautionary Statement Regarding Forward-Looking Statements
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Cautionary Statement Regarding Forward-Looking Statements This presentation as well as other written or oral statements by the Company may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. We have based
Slide 7: Key Takeaways
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Jerry Gahlhoff © 2024 Rollins, inc. All rights reserved Key Takeaways Rollins is a scaled player We operate in a large We continue to invest for We strongly embrace our We are a compounder in the core North and highly fragmented growth, both organically cul
Slide 8: Our Rich Legacy in Pest Control
rain begins Rolins bogs Orkin acquires operations, Otto tracing on the Canadian-based Orkin “The Rat Man sling rat bait Services ‘oor to-door NYSE CANADA 1901 1964 1968 Roltins buys Orkin Orkin opens 1st for $62 milion US. franchise Rollins Boasts a Rich Legacy in Pest Con Orkin opens 1st internatio
Slide 9: Successful Track Record
Successful Track Record 20+ YEARS ~8% >75% +800BPS 2008-2023 ae ran ae na ie en REVENUE GROWTH ADJ. EBITDA GROWTH * GREAT FINANCIAL CRISIS 2008 - 2010 ~6% ~11% INDUSTRIAL SLOWDOWN 2015 — 2016 ~6% ~8% COVID PANDEMIC 2020 — 2022 ~12% ~15% Recession-Resilient Business Model Yields Consistently Strong F
Slide 10: Our Mission & Strategic Objectives
ROLLINS 2024 INVESTOR & Our Mission & Strategic Objectives “Maintain and Extend our Leadership Position as a Premier Global Consumer and Commercial Services Company by Protecting Our Customers’ Health, Property & Brands” PEOPLE FIRST j ) CUSTOMER LOYALTY “Build Trust & Loyalty” “Put Other’s Needs Fi
Slide 11: Attractive Market Opportunity...
ROLLINS 2024 INVESTC Attractive Market Opportunity... HIGHLY UNDERPENETRATED RESILIENT AND CONSISTENT STRONG SECULAR OPPORTUNITY MARKET GROWTH TAILWINDS POTENTIAL MARKET CLIMATE & OPPORTUNITY Tl ENVIRONMENTAL COULD BE FACTORS 2x To 4x CURRENT MARKET ry FAVORABLE SERVED L15Y CAGR | DEMOGRAPHIC SHIFTS
Slide 12: Distinct Competitive Advantages
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Distinct Competitive Advantages PEOPLE & CULTURE ag") FINANCIAL COMPOUNDER ES EXPERIENCED TEAM TECHNOLOGY BALANCED & DISCIPLINED NN. 7 BRANDS & SCALE CUSTOMER ACQUISITION “ACQUIROR OF CHOICE” ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Today’s Agenda TOPIC P
Slide 13: A Powerful Model For Shareholder Value Creation
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE A Powerful Model For Shareholder Value Creation WE COMPOUND REVENUE, EARNINGS, AND CASH FLOW BY ACQUIRING AND GROWING MARKET-LEADING PEST CONTROL BUSINESSES FCF Dynamics Enable Return Gs of Capital » * ROLLINS - MA
Slide 14: Pat Chrzanowski: Our History
ot «le 4 . ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Pat Chrzanowski © 2024 Rollins, inc. All rights reserved Our History
Slide 15: Our Purpose and U.S. Footprint
OUR PURPOSE We provide a safe place for people to live, work, and play El es Es OUR MISSION Deliver peace of mind that only a service-minded Orkin Pro can provide OUR VISION y We aspire to be the world’s best service company ethos e-thos |'6,THas OUR VALUES noun the characteristic spirit ofa culture
Slide 16: New Commercial Division (2024)
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE New Commercial Division (2024) +———__ Com mercial o- c Locations Structuring Our Business to Capitalize on Commercial Growth Opportunity ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Orkin’s Competitive 2 Proprietary Best-In-Class Nationwide Technology Sales T
Slide 17: People First
ROLLINS 2024 ANALYST CONFERENCE People First Targeted Recruitment Efforts Pledge to double veteran employment by 125th anniversary in 2026 IF YOU HAD THE COURAGE TO JOIN THESE RANKS, fF YOU WERE TOUGH ENOUBH | | TOWEAR THIS UNIFORM, Aft... Workplace ; a> inclusion. eer emoe 4 ROLLINS 2 & ANALYST CON
Slide 18: Growth Mindset
ROLLINS IVESTOR & ANALYST CONFERENCE Growth Mindset Capitalize on Significant Commercial Growth Opportunity Phase 1 (Complete) COMMERCIAL SERVICES ¢ Restructured 5 divisions to break out a new is ] Commercial Division | ° Expanded National Accounts team, reporting into new Commercial Division Phase
Slide 19: Growth Mindset: Branch Expansion and Efficiency
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Growth Mindset Branch Expansion Strategy * — Splitting regions and branches improves leadership’s span of control, allowing for accelerated growth 15+% MI-OHIO Deere REGION Revenue 15 Branches OHIO wate. Growth After Split ¢ Positions us closer to the custo
Slide 20: Sustainability
Sustainability 15% of Orkin fleet are hybrid — including 80% of sedans Transitioning from gas-powered to electric mosquito equipment OrkinServes: 275 events and 1,700 volunteers American Red Cross: 2,500+ lives saved, 170+ blood donations e <a> ~—_— Mosquitoes Don't Qe Deserve a Dropx ORKIN SERVES Q
Slide 21: Strong Portfolio of Brands
. ee i ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Ken Krause Strong Portfolio of Brands 4tnEED>~<CnEEED i) E 3 5 Homeleam Wet ‘@PEST CONTROLEV PEST DEFENSE® 22. NORTHWEST PEST SERVICES canner Aardwolf Fatt al e rex PEST CONTROL Portfolio of Regional and Local Brands Provides Another Avenue for Growt
Slide 22: Large Runway for Expansion from M&A Opportunities
Large Runway for Expansion from M&A Opportunities GEN cd FRAGMENTED MARKET Distribution of Industry Revenues, by Pest Control Provider Size As of 2022 $2,000M+ _ $500M - $1,500M ‘$50M - $100M FRAGMENTED MARKET AND INDUSTRY POSITION PROVIDES SIGNIFICANT RUNWAY FOR FUTURE M&A Source: est Control Techn
Slide 23: Key Factors for M&A Evaluation
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE 5 Key Factors for M&A Evaluation Accretive to long-term organic revenue growth aii Accretive to margins post-synergies Strong cash flow profile and low capital requirements ROIC greater than cost of capital by year three Accretive to earnings in year one S&
Slide 24: Multi-Channel Access to the Customer
Multi-Channel Access to the Customer Cross-Sell Opportunities Strong national brand with a portfolio of leading local and regional brands Aaduale ES ag Fex vetean o Ww wana Snormwest WESTER +40 Other Brands “Full funnel approach” to marketing & + Digital Marketing + Traditional Outlets + Social Medi
Slide 25: HomeTeam | Fox
ST CONFERENCE HOMETEAM | FOX BRADY CAMP, PRESIDENT BRAND PROFILE History: + Rollins acquired HomeTeam in 2008 from Centex for $137M. ~ 1x 2007 Revenues + Fox acquired in 2023 Profile: + HomeTeam services focus on unique home- integrated tube delivery system — >50 branches across 10 states + Fox focu
Slide 26: Northwest
NORTHWEST JEFF DUNN, CO-PRESIDENT sin BRAND PROFILE KEY DIFFERENTIATORS TRACK RECORD OF EXECUTION History: + Northwest exterminating was established in Strong player in attractive Southeast 1951 by L.A. and E.L. Phillips = market, highest Net Promoter Score (NPS) in Rollins. Revenues more than tripl
Slide 27: Diversified Portfolio of Brands
ae =! 7 ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Cam Glover © 2024 Rollins, inc. All rights reserved Diversified Portfolio of Brands FCeXx PEST CONTROL Saree fan og Lar , NORTHWEST = Homeleam rest otrense: -_. it a Sapist CONTROLED WILDLIFE SERVICE w * PEST SERVICES QuaEED-CnEEED | Ww WALTHAM | 1
Slide 28: Multi-Brand, Multi-Channel Approach
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Multi-Brand, Multi nnel Approach Marketing Spend Allocated Differently Across Our Brand Portfolio ¢ Enables balanced & disciplined approach to customer acquisition Not overly reliant on one channel to = acquire new customers Brands share best practices and
Slide 29: Power of the Orkin Brand
Power of the Orkin Brand BRAND AWARENESS IN U.S. PEST CONTROL' ORKIN Because of This Brand Awareness a THE ORKIN BRAND 5O% _sIsASHORTCUT TO DECISION MAKING of Customers Come to Orkin Directly? ‘ume ASSETS a mer mt ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Our Marketing Efforts Put Our Customers at
Slide 30: Full-Funnel, Multi-Channel Approach
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Full-Funnel, Multi-Channel Approach Digital Paid Search/ Video Digital Display Social Linear TV Streaming Accelerate Awareness | ' CREATE ' ' FUTURE | . meme | —_— DEMAND sri | tubi | Alig sezem cd ' Hétise VIA BRAND | ' . BUILDING H H H . Drive bd | ROKK |
Slide 31: Campaign Effectiveness
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Campaign Effectiveness The Best in Pests" When you see a pest in your home—your safe space—it takes over your mind. You feel uncomfortable and anxious because there’s so much unknown: What are they? Where did they come from? Are there more? In this moment,
Slide 32: Strength of the Orkin Brand Affords Earned Media Exposure
T CONFERENCE Strength of the Orkin Brand Affords Us Significant Earned Media Exposure 2023 Annual Earned Media Impressions Osa vs. Competitors (in Billions) . Potentially record summer travel + 35 low housekeeping staff = bed bug nightmares ‘Amanda Lee Myers :ATODAY of Carpet Beetles ‘ ‘Once and for
Slide 33: Dynamic & Focused on Return
Dynamic & Focused on Return Performance Data Return-on-Ad-Spend (ROAS) i Advertising Operations Investment 2019 2020 2021 2022 2023 2024(P) Customer Prospects Efforts Are Focused On Enhancing the Experience of Existing Customers... a ae aes = WELCOME, sone _ CHRISTOPHER oa EZ PROTECT San YOUR HOME I
Slide 34: Increasing Our Depth of Relationship With Customers
...And Increasing Our Depth of Relationship With Them <B> oo» $0 LONG MOSQUITOES, LET'S TERMINATE HELLO SAS, ‘SOME TERMITES. WESTOP TAS.» newt SAVE 10% © »-» Multi-Brand Multi-Channel Disciplined Marketing Investment Orkin Brand Power Depth of Customer Relationship 2024 Rollins, inc. All rights rese
Slide 35: Renee Pearson: Technology as an Enabler
ae =! 7 ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Renee Pearson © 2024 Rollins, inc. All rights reserved * Pace of innovation is driven by the Clear Business : customer impact and demand Outcomes * Focus on customer value with alignment to business outcomes and Employee and our strategic plan and o
Slide 36: Opportunity to Drive Operational Efficiencies
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Opportunity to Drive Operational Efficiencies * M&A Playbook ee FSX a WMcCalt . ¢ Process Standardization Oesgour * Application Rationalization =e y Technology ¢ Shared Services Footprint ert <p> D gvesreny 1 Pee | WALTHAM CANADA’ PEST RESENS te 0 rest eoet
Slide 37: Evolving Our People First Structure
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Evolving Our People First Structure M&A Activity Embedded eee eea) in Other Roles Integration Roles Minimal Growth of Brand Business Brand Focus Partner / Relationship Roles Separate Shared One Unified Shared Services Teams Services Team © 2024 Rollins, ne.
Slide 38: Business Strategy Alignment
Business Strategy Alignment Differentiating Experiences Efficiency & Cost Savings Acquisition Onboarding Il rights reserved.
Slide 39: Ken Krause: Long-Term Compounder
=a 4 eg q od. ¢ 2 ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Ken Krause Long-Term Compounder
Slide 40: Exceptional Operational Performance...
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Exceptional Operational Performance... Last 10 Year Last 3 Year YoY CAGR CAGR Growth Total Revenue 9% 12% 14% EPS 14% 18% 19% Operating Cash Flow 13% 7%" 13% 2013 2020 2023 Gross Profit 49% 51% 52% Margins Adj. SG&A 23 32% 30% 30% Adj. EBITDA2> 17% 21% 22%
Slide 41: Delivering Top-Decile Returns Since 2000
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Delivering Top-Decile Returns Since 2000 Business Model and Strategy Designed fo: Rollins Return Profile Ranks in the 94th Percentile of All S&P 500 Companies since 2000 “) Indexed Total Performance to 100 in 2000 8,000% a # fa ‘Companies Rollins ranks in t
Slide 42: Attractive Market Opportunity...
ALYST CONFERENCE Attractive Market Opportunity... HIGHLY UNDERPENETRATED OPPORTUNITY POTENTIAL MARKET OPPORTUNITY COULD BE 2x To 4x CURRENT MARKET SERVED Current Global Pest Control Market Served: $20+Bn RESILIENT AND CONSISTENT MARKET GROWTH Li0Y CAGR 4.3% L15Y CAGR 3.2% Current US Market Rollins R
Slide 43: Large Runway for Expansion from M&A Opportunities
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Large Runway for Expansion from M&A Opportunities Robust Pipeline of M&A Opportunities & Solid Track Record of M&A Executi FRAGMENTED MARKET ACQUIROR OF CHOICE TRACK RECORD OF EXECUTION Distribution of Industry Revenues, by Pest Control Provider Size Scale
Slide 44: Unpacking Drivers of Gross Margin
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Unpacking Drivers of Gross Margin PRICE C= 4 bam Focused ona CPI+ Cc Pricing Strategy Essential Low Portion of Low DIY Service Customer’s Budget GROSS MARGIN costs Opportunities for ag Reduction in Costs "2 from Fleet, People, and Materials & People Materia
Slide 45: Spend Reduction Opportunity
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Spend Reduction Opportunity Adj. SG&A‘ as % of Revenue (Last 3 Years) Opportunities for Spend Reduction Average: 29.7% a aa - 29.7% Back Office Administration Effectiveness ~60% (ox — Software / RO fearon . Sales & Marketing ~40% = a Modernization 1 a 2021
Slide 46: Significant Free Cash Flow Generation...
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Significant Free Cash Flow Generation... V) Strong and improving profitability 117% 118% 149% ©, ractive net working capital2 dynamics L10Y Average NWC as % of Revenue: negative ~5% ~$272 7 ZZ Minimal recurring capital L | A Wz expenditure requirements 2013
Slide 47: Disciplined Capital Deployment
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Disciplined Capital Deployment Free Cash Flow’ ($MM) HOW IT WAS SPENT Free Cash Flow! Allocated to M&A, Dividends & Share Repurchases Share Repurchases 14% MBA 47% Dividends 39% M&A Dividends Share Repurchases $1.2B $1.0B $0.4B * High-Quality, Profitable *
Slide 48: A Powerful Model For Shareholder Value Creation
A Powerful Model For Shareholder Value Creation Strong Secular Above-Market Accretive Long-Term FCF Dynamics Tailwinds Share Gains M&A Margin Enable Return Opportunities Expansion of Capital s ROLLINS 2024 INVESTOR & ANALYST CONFERENCE
Slide 49: Non-GAAP Reconciliation
ROLLINS 2024 INVESTOR & ANALYST CONFERENCE Non-GAAP Reconciliation $MM. 2000 2008 2010 2013 2015 2016 2018 2020 2021 2022 2023 Revenue $647 ($1,021 $1,197 $1,387 $1,485 $1,573 $1,822 $2,164 $2,424 $2,696 $3,073 Adj. EBITDA GAAP Net Income $9.6 $68.9 $90.0 $1233 $162.1 $167.4 $231.7 $266.8 $356.6 $36