Third-Quarter 2020 Earnings Webcast

Third-Quarter 2020 Earnings Webcast

November 5, 2020

Cautionary Statements

Safe Harbor Statement This presentation contains forward-looking statements and cautionary statements, including cash flow outlook and projections, that are based on management's beliefs and assumptions and on information currently available to management. Most forward-looking statements contain words that identify them as forward-looking, such as "anticipates," "believes," "continues," "could," "seeks," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "will," "would" or similar expressions and the negatives of those terms that relate to future events. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Terminix's actual results, performance or achievements to be materially different from any projected results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent the beliefs and assumptions of Terminix only as of the date of this presentation and Terminix undertakes no obligation to update or revise publicly any such forward-looking statements, whether as a result of new information, future events or otherwise. As such, Terminix's future results may vary from any expectations or goals expressed in, or implied by, the forward-looking statements included in this presentation, possibly to a material degree. Terminix cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial or operational goals and targets will be realized. For a discussion of some of the important factors that could cause Terminix's results to differ materially from those expressed in, or implied by, the forward-looking statements included in this presentation, investors should refer to the disclosure contained under the heading "Risk Factors" in our Annual Report on Form 10-K, and our other filings with the SEC.

Note to Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. Non-GAAP measures should not be considered as an alternative to GAAP financial measures. Non-GAAP measures may not be calculated like or comparable to similarly titled measures of other companies. See non-GAAP reconciliations below in this presentation for a reconciliation of these measures to the most directly comparable GAAP financial measures. Adjusted EBITDA, adjusted net income, adjusted earnings per share, free cash flow, free cash flow to Adjusted EBITDA conversion rate and free cash flow from discontinued operations are not measurements of the Company's financial performance under GAAP and should not be considered as an alternative to net income, net cash provided by operating activities from continuing operations, net earnings from discontinued operations, cash flow from operating activities from discontinued operations or any other performance or liquidity measures derived in accordance with GAAP. Management uses these non-GAAP financial measures to facilitate operating performance and liquidity comparisons, as applicable, from period to period. We believe these non-GAAP financial measures are useful for investors, analysts and other interested parties as they facilitate company-to-company operating performance and liquidity comparisons, as applicable, by excluding potential differences caused by variations in capital structures, acquisition activity, taxation, the age and book depreciation of facilities and equipment, restructuring initiatives and equity-based, long-term incentive plans.

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Agenda

First 50 Days & Recent Performance Highlights

Brett Ponton

2020 Strategic Priorities Progress Update

Brett Ponton

Q3 Financial Summary & Improved Capital Structure

Tony DiLucente

Termite Damage Claims Ringfence Update

Tony DiLucente

Q4 2020 Guidance

Tony DiLucente

Closing Remarks and Q&A

Brett Ponton

CONFIDENTIAL AND PROPRIETARY. DO NOT DISTRIBUTE.

Brett Ponton

Chief Executive Officer

Tony DiLucente

Chief Financial Officer

Jesse Jenkins

VP Investor Relations & Treasurer

Observations From the First 50 Days

Initial Observations

Customer Experience Focus Tracking the Right Metrics

? Employee Retention, Net Promoter Scores, Customer Retention Developing a Teammates and Customer-First Culture Strong Underlying Business Momentum

Strengths

Passionate Leadership, Strong Front-line Engagement Many Opportunities to Solve Problems and Create Loyalty Strong Underlying Industry Dynamics

Opportunities

Consistent Operating Performance Digital Marketing, Pricing Analytics, Route Optimization and Commercial Sales Capabilities Stream-lined Pure-Play Pest Support Structure

Stable Foundation, Already Making Progress, Positioned Well For Future Profitable Growth

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Recent Performance Highlights

Third quarter revenue growth of 10%, including 2% total organic growth at Terminix 4% organic growth in termite services 4% organic growth in residential pest control 3% organic decline in commercial pest control, a 6% sequential improvement from Q2

Third quarter adjusted EBITDA margins of 19.2% for year-over-year expansion of 370bps Strong direct and indirect cost productivity Continued teammate and customer retention improvement

Strong year to date free cash flow of $191 million from continuing operations, and $41 million from discontinued operations October 1st completion of the sale of ServiceMaster Brands for net proceeds of $1.1 billion

Approximately $800 million will be used for debt paydown, reducing annual interest expense by $40 million New $400 million share repurchase authorization

Reached a favorable Mobile Bay Formosan termite settlement with the Alabama Attorney General Ringfence estimate of $140 to $150 million through 2029 remains within original expectations

Strong Underlying Operating Momentum into the Fourth Quarter and Beyond

Excluding termite damage claims settlement impact, total TMX organic growth would have been 2%, and termite organic growth would have been 6%

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