University of IllinoisJanuary 12, 2002

Who is ServiceMaster Home Service Center?

INTRODUCTION

ServiceMaster Home Service Center is the single source solution that allows the busy homeowner to research, schedule and purchase home services and related products online or by telephone 24 hours a day. It is the only home services network that offers homeowners leading national and local brands and guarantees their work 100%, assuming total responsibility for complete customer satisfaction.

Single Source Solution

­ Complete solution for all home service needs

­ We partner with only the #1 or #2 brands in each service category

­ Nationwide service coverage

Convenient and Timely

­ Research, schedule and purchase services online at ServiceMaster Home Service Center.com

­ Call 1-888 WE SERVE to research, schedule and purchase service over the phone

­ Premium appointment times for scheduling, even weekends and evenings

Dependable Fulfillment and Customer Care

­ 100% guarantee of fulfillment satisfaction

­ 5,800 service branches and 29,000 service vehicles

­ 65 customer care analysts

Appliance

Electrical

Maid Service

Carpet & Upholstery Cleaning

Plumbing

HVAC

Home Inspection

Lawn Care

Disaster Recovery

Home Warranty

Furniture Repair Home

Security

Pest Control

Other Services Products Content

Home Improvement

Water Delivery

Home Decorating

ServiceMaster Home Service Center Services

ServiceMaster Home Service Center Objectives

Help people organize and simplify their lives

­ ServiceMaster Home Service Center provides today’s busy households with a complete suite of home services designed to take the hassle out of maintaining a beautiful home

­ One-Stop-Shopping on ServiceMaster.com saves the customer the trouble of shopping all over town for different services

­ On-line scheduling and purchasing technology is quick, easy and convenient

Pioneer a new medium for research, order and fulfillment of home services

­ Best in class brands/quality service partners

­ Responsibility for outcome not activity

­ Unparalleled customer experience

Why is ServiceMaster Home Service Center unique?

Only company to offer market leading home services brands

Only company with 29,000 vehicles available for service (3 rd largest private fleet behind FedEx and UPS)

Only company to have control over service delivery

Only company backward integrated into fulfillment network (5,800 service branches)

Only electronic service network in the market; ServiceMaster Home Service Center is not a “referral model”

Only company with national coverage and local presence

Only service company funded by both a top Fortune 500 company (SVM) and top Venture Capital Firm (KPCB)

Brand Services Customers Locations Market Position

Lawn, shrub and tree care 2.5M 370 #1

Landscaping -- 45 #1

Pest and termite control 2.6M 500 #1

Maid service 250K 900 #1

Home warranty 750K 12,500 #1

Carpet, Upholstery and drapery Cleaning

900K 3,400 #1

HVAC repair and plumbing services

1.0M 100 #1 / #2

Furniture repair 150K 530 #1

Home inspections 125K 244 #1

* Home Security and Fire Detection

700K 100 #2

*Handyman Services 200K 144 #1

*Appliance Repair 9M 700 #1

ServiceMaster Competitive Advantage

*Non-ServiceMaster Brand

ServiceMaster, the most admired outsourcing company in the Fortune 500, has shown steady revenue growth and profitability over the last two decades

INTRODUCTION

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Billions of

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Billions of

DollarsEPS

Operating Revenue vs. EPS 1980 - 2000

Customer Level Revenue*

1985 1995 2000

Revenue CAGR%

14.3%

* Note: Customer Level Revenue defined as the combined revenue of ServiceMaster’s operations and estimated revenues of its independently licensed franchises

$1.0

$4.5

$7.7

ServiceMaster Customer Target

Matures­(55-75)

Young­Singles Older­Singles Young­DINKS Older­DINKS Parents­of­Young­Children Parents­of­Teenagers SandwichEmpty­Nesters,­Older­

Unattached

Age­(adult) 18-35 36-54 18-44 45-54 21-49 35-54 21-54 55+

Marital­StatusNot­Married­

(widow/divorced/single)Not­Married­

(widow/divorced/single) Not­Relevant Not­Relevant Not­Relevant Not­Relevant Not­Relevant Not­Relevant

Ever­Had­Children No No No No Yes Yes Yes Yes

Children­in­HH 0 0 0 0 1+ 1+ 1+ 0

Age­(child) - - - - 0-12 13-22 0-22

Employment Not­Relevant Not­Relevant Both­Employed Both­Employed Not­Relevant Not­Relevant Not­Relevant Employed,­Retired

HHI

Psychographics

Main­Focus Self Self Self Self Kids Kids Kids­and­Parents Self­and­Community

Lifestyle­"hot­buttons"

Friends,­Fun,­Looking­Good­and­Feeling­Fit,­Internet,­Individualism,­Trendiness,­Ethnicity

Non-traditionalists,­have­financial­difficulties,­strong­focus­on­

retirement,­Independence

Career,­financial­freedom,­buying­home-based­products,­self-indulgence,­having­fun,­

internet,­family­planning

Life­after­retirement,­self-indulgence,­having­fun,­home­entertaining

Home­and­family,­tradition,­balance­between­work­and­home,­spending­carefully,­active­savers,­price-

conscious,­strapped­for­time,­stress

Same­as­Parents­with­pre-schoolers Same­as­Parents­x2

Self-fulfillment,­fun/relaxation/travel,­health,­retirement,­religion,­home,­community,­financial­

savvyness­and­planning,­leaving­work­force­later,­worried­about­the­future

Important­Shopping­Factors Brand,­Trend Less­DiscriminatingBrand,­Service,­

Demanding­ShoppersBrand,­Service,­

Demanding­Shoppers Price,­Advice Price,­Advice Same­as­Parents­x2Personal­Relationships,­Trust,­Habit,­Patriotism

Financial­PriorityVacation,­Personal­

Hobbies Retirement

Vacation,­Buying­a­House,­Planning­a­

FamilyRetirement,­Community,­

Extended­FamilyKid's­Education,­Buying­a­

HouseKid's­Education­and­

Retirement

Kid's­Education,­Caring­For­Elderly­Parents,­

Retirement

Retirement,­Vacation,­Personal­Interests,­Grandchildren

SVM HSC Target

Singles­(18-54) DINKS­(18-54) Parents­(21-54)

Demographics