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ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations

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Page 1: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

ROLLINS, INCJulie Bimmerman

VP Finance and Investor Relations

Page 2: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

• 22 consecutive years of improved earnings

• Dividend increased a minimum of 12% for 17

consecutive years

• 5% or greater revenue growth each of the last 10

years

Continued Growth

• Leading pest and termite control company

• Powerful ORKIN brand name – world renown

• Over 2.3 million residential and commercial

customers

• Over 800 locations and 200 franchises worldwide

Our Company

The Rollins Brand

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Page 3: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Key Events in Our History

1964

Rollins buys Orkin for $62 million

1968

Rollins begins trading on the NYSE

1901

Orkin began operations; Otto Orkin “The Rat Man”

sold poison door to door

1999

Orkin acquires Canadian Based PCO Services

Entry into International Market

3

2015

Rollins acquires Critter Control, Inc.

2019

Rollins acquires Clark Pest Control

Page 4: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

A FAMILY OF BRANDS

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Page 5: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Growth

$18 billion industry globally with an

expected growth rate of 4-5%

annually; $12+ billion US

Awareness

Increasing health

awareness

Customers

US, roughly 70% residential

US and 30% commercial

Market

US market is 20,000

companies; Highly fragmented

market

Competitors

3 largest public competitors:

ServiceMaster (NYSE:SERV)

Rentokil (LSE:RTO)

Ecolab (NYSE:ECL)

Evolution

Rollins, Terminix, Rentokil, Anticimex

& Ecolab generate over 30% of

industry revenues

Industry

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Page 6: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Rollins Value Proposition

Solid track record of Shareholder Value creation

80+% of revenues are recurring

Recession Resistant

Focus on sustained profitable growth

Strong Balance Sheet

Brand and best in class customer experience

Competitive Advantage

Strong management and excellent depth

Significant Insider Ownership

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Page 7: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

1%17%45%37%

Commercial

Retention 88% - 90%

Residential

Retention 76% - 85%

Termite

Retention approximately 85%

Other

Revenue & Retention by Business Line

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Page 8: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Revenue Growth 2009-2018

8

$1,000,000,000

$1,150,000,000

$1,300,000,000

$1,450,000,000

$1,600,000,000

$1,750,000,000

$1,900,000,000

Page 9: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Organic Revenue Growth

9

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2014 2015 2016 2017 2018 2019

Q1 Q2 Q3 Q4

Page 10: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

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People – Our Greatest Asset

Page 11: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Commitment to Training

Named to Training Magazine

“Top 125 Training

Companies” for the past 13

years

27,000 sq. ft. state of the art

Learning & Training Center

unique to pest control

industry, including Termite &

Commercial training facility

Attracts regulators,

educators, & university

researchers

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Page 12: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Global Training Communication

Web-based employee training network utilized by employees and franchises worldwide

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Page 13: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

WorldwideGlobal Strategic Franchises

49 Orkin Domestic Franchises

94 Orkin International Franchises

10 Orkin Australia Franchises

83 Critter Control Franchises

236 Total Franchises

North America

Central America• Mexico• Guatemala• El Salvador• Honduras• Nicaragua• Costa Rica• Panama

South America• Brazil• Ecuador• Columbia• Peru• Uruguay• Chile• Paraguay• Bolivia• Argentina

Caribbean• Jamaica• Turks & Caicos

Islands• Trinidad & Tobago• US Virgin Islands• Puerto Rico• St. Lucia• Cayman Islands

Africa• Nigeria• Egypt• Kenya• Côte d’Ivoire• Libia

Middle East

• Saudi Arabia• Bahrain• Lebanon• Kuwait• Qatar• Oman• Azerbaijan• Kurdistan• Georgia• United Arab

Emirates

South Asia• India• Pakistan• Malaysia• Indonesia• Bangladesh

Oceania• Guam

East Asia• South Korea• China• Kingdom of Cambodia• Mongolia• Macau• Hong Kong

Australia

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23 North & South America

34 Europe & Asia

1 Australia

5 Africa

63 Total Countries

Europe• Netherlands• Ireland• Portugal• Kazakhstan• Romania• Cyprus• Turkey• Moscow• Cote d Azure• Budapest

Countries with Company owned operations

Page 14: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

BOSS – Branch Operating Support SystemTechnology

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Page 15: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Virtual Route Management

Technology

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Page 16: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

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BizSuite, InSite

Technology

Page 17: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Net Income 2009-2018

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

$220,000,000

$240,000,000

Average Growth Rate =

12.9% (11.6% Adj for Tax)

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Page 18: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Strong Free Cash Flows Growth

$28.7

$39.5$33.1

$24.7 $27.1

$75.8

$91.8

$109.0

$122.0

$152.7

$89.7

$65.1

$84.4$90.1

$107.1

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

2014 2015 2016 2017 2018

Capital Expenditures Dividend Payout Free Cash Flow

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Page 19: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

Dividend Record

All dividend data is presented post-split for the three-for-two stock split effective March 10,

2015 and November 9, 2018 for shareholders of record February 10, 2015 and December 10,

2018.

$0.18

$0.21

$0.27

$0.31

$0.37

$0.23

$0.28

$0.34

$0.38

$0.47

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

$0.50

2014 2015 2016 2017 2018

Dividends Paid (excluding special dividends) Dividends Paid (with special dividends)

Increase at 12.5% or more in the

past 17 years

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Page 20: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

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Growth and the Future of Rollins

Page 21: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

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Sustainability Mission

At Rollins, we are committed to sustaining our people and communities, our environment, and our business.

Page 22: ROLLINS, INC Julie Bimmerman VP Finance and Investor Relations/media/Files/R/Rollins-V2/... · 2019-11-04 · VP Finance and Investor Relations • 22 consecutive years of improved

www.rollins.com

[email protected]

Website

404-888-2000

Telephone

2170 Piedmont Rd, NE

Atlanta, GA 30324

United States

Location

Thank You

Updated: 11.01.19

For questions, please reach out to Julie Bimmerman

Julie BimmermanVP, Finance and Investor Relations

(404) [email protected]