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ROLLINS, INCJulie Bimmerman
VP Finance and Investor Relations
• 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
2
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
A FAMILY OF BRANDS
4
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
5
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
6
1%17%45%37%
Commercial
Retention 88% - 90%
Residential
Retention 76% - 85%
Termite
Retention approximately 85%
Other
Revenue & Retention by Business Line
7
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
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
10
People – Our Greatest Asset
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
11
Global Training Communication
Web-based employee training network utilized by employees and franchises worldwide
12
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
13
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
BOSS – Branch Operating Support SystemTechnology
14
Virtual Route Management
Technology
15
16
BizSuite, InSite
Technology
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)
17
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
18
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
19
20
Growth and the Future of Rollins
21
Sustainability Mission
At Rollins, we are committed to sustaining our people and communities, our environment, and our business.
www.rollins.com
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]