FINANCIAL APPENDIX

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

Our financial journey: Revenue.

CAGR: (2.5%)⁽⁸⁾

Footnote details on Financial Appendix slides 12-13

Our financial journey: Gross Profit.

CAGR: 1.5%⁽⁸⁾

Footnote details on Financial Appendix slides 12-13

Our financial journey: Adjusted EBITDA⁽⁹⁾.

CAGR: (4.6%)⁽⁸⁾

Footnote details on Financial Appendix slides 12-13

Our financial journey: Free Cash Flow⁽¹⁰⁾.

Footnote details on Financial Appendix slides 12-13

First Quarter 2023 Financial Summary.

		Change Increase/(Decrease)
	Actual Results	As Reported	As Adjusted⁽¹²⁾
Revenue	$1.3B	(2.2%) (1.4%) CC⁽¹³⁾	(2.2%) (1.4%) CC⁽¹³⁾
Gross Profit Rate	20.0%	10 bps	10 bps
Earnings from Operations	$10.7M	(54.4%) (50.6%) CC⁽¹³⁾	(27.4%) (23.4%) CC⁽¹³⁾
Adjusted EBITDA	$25.9M		(15.7%)
Adjusted EBITDA Margin	2.0%		(40) bps

Footnote details on Financial Appendix slides 12-13

First Quarter 2023 Revenue Trends.

	Reported⁽¹⁴⁾	Constant Currency^(13)(14)	Organic^(13)(15)(16)
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%)

Footnote details on Financial Appendix slides 12-13

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

Footnote details on Financial Appendix slides 12-13

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

Footnote details on Financial Appendix slides 12-13

Adjusted EBIDTA Non-gaap reconciliation.

$ in millions

Management uses Adjusted EBITDA and Adjusted EBITDA margin which Management believes is useful to compare operating performance compared to prior periods and uses it in conjunction with GAAP measures to assess performance. Our calculation of Adjusted EBITDA may not be consistent with similarly titled measures of other companies and should be used in conjunction with GAAP measurements.

Footnote details on Financial Appendix slides 12-13

Q1 2023 Footnotes.

(1) Kelly size and margin profiles are based on 2022 full year results; (2) Kelly Education revenue and GP rate was $0.7B and 16.6%, respectively, including the results of PTS on a proforma basis; (3) Kelly OCG revenue and GP rate was $0.5B and 36.7%, respectively, including the results of RocketPower on a proforma basis; (4) Managed Service Provider (“MSP”); Recruitment Process Outsourcing (“RPO”); Payroll Process Outsourcing (“PPO”); (5) Share repurchase plan approved November 2022; (6) Working Capital excludes impact of CARES Act payroll tax deferrals; (7) Trailing 12 months includes Q2 2022 through Q1 2023; (7) Trailing 12 months includes Q2 2022 through Q1 2023; (8) CAGR is for 2019-2022; (9) Adjusted EBITDA excludes from Net Income: (i) equity in earnings of affiliate, (ii) income taxes, (iii) other income or expenses net, (iv) Persol related gains or losses, (v) gains or losses on asset sales, (vi) asset impairment charges, (vii) gains on insurance settlement, (viii) gains or losses on foreign currency matters, (ix) restructuring expenses and (x) depreciation & amortization; (10) Free Cash Flow (“FCF”) is defined as net cash from operating activities minus capital expenditures; (11) FCF includes the cash outflows of $30 million in 2021, $87 million in 2022, and $57M in the trailing 12 months used to repay payroll taxes previously deferred under the CARES Act and $48 million in 2022 and the trailing 12 months for income taxes related to the sale of Persol Holdings common stock; (12) See reconciliation of Non-GAAP Measures included in Form 8-K dated May 11, 2023; (13) Constant Currency ("CC") represents year-over-year changes resulting from translating 2023 financial data into USD using 2022 exchange rates; (14) 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; (15) 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; (16) Excludes the 2022 results of our Russian operations following the completion of the sales transaction in Q3 2022; (17) U.S. credit facilities, net of standby letters of credit related to workers’ compensation; (18) 2022 loss on investment in Persol Holdings includes losses of $67.2 million on the sale of Persol Holdings in Q1 2022, $52.4 million of which related to changes in fair value up to the date of the transaction. Gain on investment in Persol Holdings of $121.8 million in 2021, loss on investment in Persol Holdings of $16.6 million in 2020, and gain on investment in Persol Holdings of $35.8 million in 2019; (19) Loss on foreign currency matters represents a $20.4 million loss on currency translation resulting from the substantially complete liquidation of the Company's Japan entity in Q1 2022; (20) 2022 gain on sale of assets represents $0.9 million in Q1 2022 for the sale of real property, $4.4 million in Q2 2022 for the sale of under-utilized real property and $0.9 million in Q4 2022 for the sale of real property. 2020 gain on sale of assets represents $32.1 million for the sale of three of the four headquarters buildings. 2019 gain on sale of assets of $12.3 million primarily represents the gain on sale of land; (21) 2022 loss on disposal represents the write-off of the net assets of our Russian operations that were sold in Q3 2022; (22) 2022 goodwill impairment charge is the result of interim impairment tests the Company performed related to RocketPower due to triggering events caused by changes in market conditions. The goodwill impairment charge in Q1 2020 was caused by a decline in the Company’s common stock price; (23) Gain on insurance settlement represents a payment received in the fourth quarter of 2021 related to the settlement of claims under a representations and warranties insurance policy purchased by the Company in connection with the acquisition of Softworld;

Q1 2023 Footnotes.

(24) 2023 restructuring charges of $5.7 million represent severance costs and lease terminations and other costs in the first quarter of 2023 to further cost management efforts in response to current demand levels and reflect a repositioning of our P&I staffing business to better capitalize on opportunities in local markets. 2021 restructuring charges of $4.0 million represent severance costs as part of cost management actions designed to increase operational efficiencies within enterprise functions that provide centralized support to operating units. 2020 restructuring charges of $12.8 million represent severance costs and lease terminations in the first quarter of 2020 in preparation for the new operating model adopted in the third quarter of 2020 and additional severance costs in the fourth quarter of 2020 to provide sustainable cost reductions as a result of the continuing COVID-19 demand disruption. 2019 restructuring charges of $5.5 million related to U.S. branch-based staffing operations; (25) 2019 asset impairment charge of $15.8 million represents the write-off related to a technology development project; (26) Customer dispute represents a non-cash charge in Mexico to increase the reserve against a long-term receivable from a former customer based on an updated probability of loss assessment.