MEET TODAY'S KELLY

Kelly Snapshot.

We're building on more than 75 years of leadership.

Largest

U.S. workforce provider in Education

(Staffing Industry Analysts, 2022)

Second largest

life sciences staffing firm in the U.S.

(Staffing Industry Analysts, 2022)

Leading

managed services provider (MSP) with $9.4 billion spend under management

(Proprietary data)

Delivering

workforce solutions across Americas, EMEA, and APAC

Partnering

with more than 4,600 talent suppliers globally

Powering

the Fortune 500 with workforce solutions

Market recognition.

Leader

in Business & Professional Contingent Staffing Services*

Star Performer

in MSP, Services Procurement, and RPO*

Leader

in Engineering Contingent Staffing Services*

#1 Temporary Staffing Company

on Forbes' America's Best Recruiting and Staffing Firms for 2023

#1 of 100

on Flex Job's list of top companies for hybrid work in 2022

8th year

of consecutively being named a Military-Friendly Employer

#2 Professional Recruiting Firm

on Forbes’ America’s Best Recruiting and Staffing Firms for 2023 (for the 3rd consecutive year)

*Based on global research firm Everest Group’s 2022 PEAK Matrix assessments, which cover seven categories of rankings among staffing and workforce solutions providers.

We have launched a new era of specialty growth...

We have evolved and redesigned our company around growth in chosen specialties.

1946-1995:

LOCAL ACCOUNTS

1995-2005:

LARGE ACCOUNTS

2005-2019:
TALENT SUPPLY CHAIN

Capital approach: Invest in HQ structure, geo-based management layers, and brick & mortar branches; increase and protect capital; grow organically.

Capital approach: Invest in staff and structures to sell and service large accounts; increase and preserve capital; grow organically.

Capital approach: Invest in building outsourcing organization and global supply chain; grow organically; make small acquisitions with existing capital.

Operating model: Extensive U.S. branch network focused on local Commercial staffing business; arranged by geography.

Operating model: Arranged by geography and account size; launched new staffing specialties and centralized models to meet largest customers’ needs.

Operating model: Arranged by account size and delivery model; large accounts increasingly serviced by external suppliers.

Capital approach: Unlock capital to invest in chosen specialties, talent, and technology; grow organically and invest aggressively in meaningful high-margin acquisitions.

Operating model: Arranged by specialty; five segments, each led by experts driving growth in their market.

LOOKING INWARD

LOOKING OUTWARD

...and are taking bold action to delivery profitable growth.

Transforming our business

Unlocking capital

Making specialty acquisitions

Investing organically

Launched specialty operating model focused on high-value, high growth markets

Sold/leased back Kelly HQ real estate
Sold Brazil staffing operations
Unlocked $235 million in capital by unwinding non-EBITDA producing APAC investments

Completed three acquisitions that expand our Education specialty and introduce higher-value adjacencies
Acquired an IT workforce solutions firm in the SET specialty (Kelly’s largest acquisition to date)
Acquired a specialty recruiting firm in the fast-growing RPO space

Launched/expanded three Education products
Unlocked organic GP and revenue opportunities in SET
Added higher-value solution to P&I
Unwinding legacy systems to increase speed to revenue
Launched Fusion Digital Workers product

Our M&A activities are shifting our portfolio.

We have embarked on the next phase of our growth journey.

In May 2023, we announced an intensive and comprehensive initiative to optimize our business, unlock additional value-creating opportunities, and accelerate profitable growth.

ACTIONS TO DATE

Appointed a Chief Transformation Officer with extensive experience
Established a Transformation Management Office to identify value-creating opportunities and drive necessary changes
Engaged consulting firm that brings business transformation expertise, world-class data and analytics capabilities, and a tested model
Sharpening our focus on reducing organizational complexity and inefficiencies, and finding new avenues of growth

OUTCOMES EXPECTED

Build on the progress made in the last three years to create long-term structural improvements that will benefit employees, talent, customers, and shareholders
Deliver meaningful improvement in EBITDA margin rate starting in the second half of 2023, with full benefits realized in 2024
Provide regular quarterly updates by which our progress can be measured

Why Kelly? We are repositioned to create shareholder value.

Specialty strategy focused on value creation

Five operating segments sharpen our focus on talent, customers, and market opportunities in each specialization

Leading talent solutions provider in targeted specialties (education, life sciences, MSP)

Strong financial position to enable growth

High-quality balance sheet

Solid free cash flow generation

Available debt financing

Monetized non- EBITDA assets to unlock capital

Cash priorities designed to
deliver value

Redeployed non-EBITDA producing assets in support of growth areas

Aggressive acquisitions in higher-margin specialties that create value

Investments in talent, technology, and products enable organic growth

Our new share repurchase program will deliver value.

Kelly's board approved a share repurchase program in November 2022.

$50 million in Class A Common Shares will be repurchased over a one-year period
Complements—does not replace—our current capital allocation strategy and disciplined pursuit of inorganic growth
Demonstrates our commitment to using our capital to maximize returns
Repurchased approximately 1,574,000 shares for $26.1 million through the end of the first quarter of 2023