FINANCIALS

First Quarter 2023 Takeaways.

Specialty talent demand continues while broader staffing demand continued to be impacted by economic uncertainty and financial market turbulence

Q1 revenue declined by 2.2% on a reported basis, down 1.4% in constant currency⁽¹⁾
Organic, constant currency⁽¹⁾ revenue nearly flat at down 0.5%
- Excludes 140 bps favorable impact from the acquisition of RocketPower and Pediatric Therapeutic Services ("PTS")
- Excludes 230 bps⁽¹⁾unfavorable impact from the sale of our Russian operations
Delivered continued improvement in GP rate at 20.0%, up 10 bps year-over-year
- Favorable product mix continues to deliver steady structural improvements even as permanent placement fees decelerate

Near-term steps to capitalize on continued demand for specialty talent and build resiliency

Focused on high-demand specialties and addressing talent supply to meet customer needs
Executed cost management actions and took a restructuring charge to proactively align resources with current growth opportunities

Continued focus on our future

Initiated a comprehensive business transformation program to significantly improve EBITDA margin
Executing on board-approved $50 million share repurchase program highlighting our flexible and balanced capital allocation strategy

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First Quarter 2023 Financial Summary.

		Change Increase/(Decrease)
	Actual Results	As Reported	As Adjusted⁽²⁾
Revenue	$1.3B	(2.2%) (1.4%) CC⁽¹⁾	(2.2%) (1.4%) CC⁽¹⁾
Gross Profit Rate	20.0%	10 bps	10 bps
Earnings from Operations	$10.7M	(54.4%) (50.6%) CC⁽¹⁾	(27.4%) (23.4%) CC⁽¹⁾
Adjusted EBITDA	$25.9M		(15.7%)
Adjusted EBITDA Margin	2.0%		(40) bps

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First Quarter 2023 Revenue Trends.

	Reported⁽³⁾	Constant Currency⁽¹⁾⁽³⁾	Organic^(1)(4)(5)
Total	(2.2%)	(1.4%)	(0.5%)
Professional & Industrial	(12.3%)	(11.7%)	(11.7%)
Science, Engineering & Technology	(3.4%)	(3.2%)	(3.2%)
Education	43.9%	43.9%	34.8%
Outsourcing & Consulting	5.0%	6.4%	4.0%
International	(16.2%)	(13.8%)	(2.3%)

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First Quarter 2023 Gross Profit Rate Growth.

Operating Segments GP rate improved primarily as a result of favorable specialty mix
Acquisitions of higher margin specialty business continues to contribute to our improving GP rate
Permanent placement fees decreased as customers slowed permanent hiring activity amid the uncertain economic environment

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First Quarter 2023 SG&A.

$ in millions

Expenses from our recent acquisitions of RocketPower and PTS include amortization expense related to acquired intangible assets
Restructuring charge of $5.7 million resulted from our Q1 2023 cost management efforts in response to current demand levels and to reposition our P&I staffing business to better capitalize on opportunities in the local markets, partially offset by our Q1 2022 restructuring charge of $1.7 million

First Quarter 2023 Liquidity.

$ in millions

During Q1 2022, we concluded the Persol Holdings cross-shareholding arrangement and sold most of our interest in the PersolKelly joint venture, generating additional capital that we strategically reallocated with the Q1 2022 acquisition of RocketPower and the Q2 2022 acquisition of PTS
We have fully repaid all 2020 CARES Act payroll tax deferrals, including $87 million repaid in 2022
As of the end of Q1 2023, we continue to have more than $400 million of available liquidity

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First Quarter 2023 Revenue & Gross Profit Mix.

Revenue mix by segment

Gross Profit mix by segment

First Quarter 2023 EPS Summary.

$ in millions except per share data

	2023		2022
	Amount	Per Share	Amount	Per Share
Net earnings (loss)	$10.9	$0.29	($47.6)	($1.23)
Loss on investment in Persol Holdings, net of taxes⁽⁶⁾	-	-	48.8	1.26
Loss on foreign currency matters, net of taxes⁽⁷⁾	-	-	16.4	0.43
Gain on sale of assets, net of taxes⁽⁸⁾	-	-	(0.7)	(0.02)
Restructuring charges, net of taxes⁽⁹⁾	4.3	0.11	-	-
Adjusted net earnings	$15.2	$0.40	$16.9	$0.44

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2023 Outlook.

We are navigating the market created by the current economic uncertainty with a continued commitment to the execution of our specialty strategy

Current view of the second quarter of 2023:

Revenue - organic revenue expectations consistent with Q1 2023 results, roughly flat YOY; down 2% to 3% YOY in nominal currency including 220 bps unfavorable impact from the 2022 sale of our Russian operations
GP rate - 20.5%, down 20 bps YOY; structural GP rate improvement will continue, but is offset by lower permanent placement fees resulting from economic conditions
Adjusted SG&A – down 1% to 2% YOY reflecting savings from our Q1 2023 restructuring actions, partially offset by investment in Education as revenues grow and investment in our technology initiatives

Recent Acquisitions.

RocketPower

RocketPower is a provider of Recruitment Process Outsourcing (RPO) and other outsourced talent solutions to customers including U.S. tech companies. RocketPower will continue to operate under its own brand and with its own operating team as part of KellyOCG, the outsourcing and consulting business of Kelly
- Expands KellyOCG’s RPO delivery offering
- Creates growth opportunities in the high-tech industry

Pediatric Therapeutic Services

PTS is a specialty firm that provides state and federally mandated in-school therapy services, including occupational therapy, physical therapy, speech-language pathology, and mental and behavioral health services. Headquartered in suburban Philadelphia, PTS currently supports schools throughout Pennsylvania and Delaware and will continue to operate under its own brand as part of Kelly Education
- Expands Kelly Education's industry-leading K-12 solutions offering
- Creates growth opportunities in the $20-billion therapeutic services segment

Our operating model aligns to these specialties.

We have redesigned our operating model to drive profitable growth in our chosen specialties.

	Kelly Professional & Industrial	Kelly Science, Engineering, Technology & Telecom	Kelly Education	Kelly OCG	Kelly International
Revenue⁽¹¹⁾	$1.7B	$1.3B	$0.6B⁽¹²⁾	$0.5B⁽¹³⁾	$0.9B
GP Rate⁽¹¹⁾	18.2%	23.5%	15.8%⁽¹²⁾	36.3%⁽¹³⁾	15.3%
Geography	North America	North America	U.S.	Global	EMEA & Mexico
Specialties	Industrial Contact Center Office Clerical	Engineering Science & Clinical Technology Telecom	Early Childhood K-12 Special Ed/Needs Tutoring Therapy Services Higher Education Executive Search	MSP⁽¹⁴⁾ RPO⁽¹⁴⁾ PPO⁽¹⁴⁾ Consulting	Life Sciences IT Finance Other Local Professional Niches

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Our M&A activities are shifting our portfolio.

First Quarter 2023 Footnotes.

(1) Constant Currency ("CC") represents year-over-year changes resulting from translating 2023 financial data into USD using 2022 exchange rates; (2) See reconciliation of Non-GAAP Measures included in Form 8-K dated May 11, 2023; (3) Includes the 2023 results of RocketPower and Pediatric Therapeutic Services ("PTS"), which were acquired as of March 7, 2022 and May 2, 2022, respectively. RocketPower was included in the reported results of operations in Outsourcing & Consulting and PTS was included in the reported results of operations in Education, from the date of acquisition; (4) Excludes the 2023 results of RocketPower and PTS, which were acquired as of March 7, 2022 and May 2, 2022, respectively. RocketPower was included in the reported results of operations in Outsourcing & Consulting and PTS was included in the reported results of operations in Education, from the date of acquisition; (5) Excludes the 2022 results of our Russian operations following the completion of the sales transaction in Q3 2022; (6) Loss on investment in Persol Holdings of $67.2 million, $48.8 million net of tax or $1.26 per share in Q1 2022; (7) Loss on foreign currency matters includes $20.4 million of currency translation from liquidation of subsidiary, partially offset by $5.5 million foreign exchange gain, $16.4 million net of tax or $0.43 per share in Q1 2022; (8) Gain on sale of assets includes gains from the sale of real property of $0.9 million, $0.7 million net of tax, or $0.02 per share in Q1 2022; (9) Restructuring charges of $5.7 million, $4.3 million net of tax or $0.11 per share in Q1 2023; (10) U.S. credit facilities, net of standby letters of credit related to workers’ compensation; (11) Kelly size and margin profiles are based on 2022 full year results; (12) Kelly Education revenue and GP rate was $0.7B and 16.6%, respectively, including the results of PTS on a proforma basis; (13) Kelly OCG revenue and GP rate was $0.5B and 36.7%, respectively, including the results of RocketPower on a proforma basis; (14) Managed Service Provider (“MSP”); Recruitment Process Outsourcing (“RPO”); Payroll Process Outsourcing (“PPO”).