FINANCIALS

Fourth Quarter 2022 Takeaways.

Specialty talent demand continues while broader staffing demand decelerates amid growing economic uncertainty and continuing inflationary pressures

Q4 revenue declined by 1.3% on a reported basis, up 0.7% in constant currency⁽¹⁾
Organic, constant currency⁽¹⁾ revenue up 1.9%
- Excludes 150 bps favorable impact from the acquisition of RocketPower and Pediatric Therapeutic Services ("PTS")
- Excludes 270 bps⁽¹⁾unfavorable impact from the sale of our Russian operations
Delivered 3.7%⁽¹⁾year-over-year gross profit growth reflecting a GP rate of 20.3% up 60 bps year-over-year
- Favorable product mix delivers structural improvements 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
Every business unit is focusing on actionable strategies to deliver on our specialty growth strategy while proactively aligning resources with current growth opportunities

Continued focus on our future

Executing on a board-approved $50 million share repurchase program highlighting our flexible and balanced capital allocation strategy, as well as confidence in our ability to deliver specialty growth
Ongoing deployment of technology investments in both the Americas and EMEA

Footnote details on slide 15

Fourth Quarter 2022 Financial Summary.

		Change Increase/(Decrease)
	Actual Results	As Reported	As Adjusted⁽²⁾
Revenue	$1.2B	(1.3%) 0.7% CC⁽¹⁾	(1.3%) 0.7% CC⁽¹⁾
Gross Profit Rate	20.3%	60 bps	60 bps
Earnings from Operations	$4.6M	(70.2%) (61.5%) CC⁽¹⁾	(28.1%) (21.2%) CC⁽¹⁾
Adjusted EBITDA	$24.1M		(13.1%)
Adjusted EBITDA Margin	2.0%		(20) bps

Footnote details on slide 15

Full Year 2022 Financial Summary.

		Change Increase/(Decrease)
	Actual Results	As Reported	As Adjusted⁽²⁾
Revenue	$5.0B	1.1% 3.2% CC⁽¹⁾	1.1% 3.2% CC⁽¹⁾
Gross Profit Rate	20.4%	170 bps	170 bps
Earnings from Operations	$14.8M	(69.7%) (61.3%) CC⁽¹⁾	29.9% 37.7% CC⁽¹⁾
Adjusted EBITDA	$105.6M		25.5%
Adjusted EBITDA Margin	2.1%		40 bps

Footnote details on slide 15

Fourth Quarter 2022 Revenue Trends.

	Reported⁽³⁾	Constant Currency^(1),(3)	Organic^(1),(4),(5)
Total	(1.3%)	0.7%	1.9%
Professional & Industrial	(11.8%)	(11.2%)	(11.2%)
Science, Engineering & Technology	1.7%	2.0%	2.0%
Education	53.3%	53.3%	43.3%
Outsourcing & Consulting	3.5%	5.1%	(0.1%)
International	(16.1%)	(8.4%)	5.0%

Footnote details on slide 15

Fourth Quarter 2022 Gross Profit Rate Growth.

Footnote details on slide 15

Overall GP rate improved primarily as a result of favorable specialty mix in the Operating Segments, partially offset by higher employee-related costs
Acquisitions of higher margin specialty business continues to contribute to our improving GP rate
Permanent placement fees decreased slightly as customers slowed permanent hiring activity amid the uncertain economic environment

Fourth Quarter 2022 SG&A.

$ in millions

Footnote details on slide 15

Expenses in the Operating Segments, excluding recent acquisitions of RocketPower and PTS, increased primarily due to higher compensation-related expenses for our full-time talent. We have added headcount in line with revenue growth in selected specialties and provided market-driven compensation adjustments to attract and retain talent
Expenses from our recent acquisitions of RocketPower and PTS include amortization expense related to acquired intangible assets
Corporate expenses increased primarily due to higher performance-based incentive compensation expenses
Restructuring related to a Q4 2021 charge

Fourth Quarter 2022 Liquidity.

$ in millions

Footnote details on slide 15

During 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 Q4 2022, we continue to have more than $450 million available liquidity

Fourth Quarter 2022 Revenue & Gross Profit Mix.

Revenue mix by segment

Gross Profit mix by segment

Fourth Quarter 2022 EPS Summary.

$ in millions except per share data

Footnote details on slide 15

	2022		2021
	Amount	Per Share	Amount	Per Share
Net earnings (loss)	($0.9)	($0.02)	$71.7	$1.80
(Gain) loss on investment in Persol Holdings, net of taxes⁽⁶⁾	-	-	(34.7)	(0.87)
Gain on sale of assets, net of taxes⁽⁷⁾	(0.6)	(0.02)	-	-
Goodwill impairment charge, net of taxes⁽⁸⁾	8.5	0.23	-	-
Restructuring charges, net of taxes⁽⁹⁾	-	-	3.1	0.08
Gain on insurance settlement, net of taxes⁽¹⁰⁾	-	-	(14.2)	(0.36)
Adjusted net earnings	$7.0	$0.18	$25.9	$0.65

Full Year 2022 EPS Summary.

$ in millions except per share data

Footnote details on slide 15

	2022		2021
	Amount	Per Share	Amount	Per Share
Net earnings (loss)	($62.5)	($1.64)	$156.1	$3.91
(Gain) loss on investment in Persol Holdings, net of taxes⁽⁶⁾	48.8	1.28	(84.5)	(2.12)
Loss on foreign currency matters, net of taxes⁽¹¹⁾	16.4	0.43	-	-
Gain on sale of assets, net of taxes⁽⁷⁾	(4.6)	(0.12)	-	-
Loss on disposal, net of taxes⁽¹²⁾	18.7	0.49	-	-
Goodwill impairment charge, net of taxes⁽⁸⁾	33.9	0.89	-	-
Restructuring charges, net of taxes⁽⁹⁾	-	-	3.0	0.07
Gain on insurance settlement, net of taxes⁽¹⁰⁾	--	-	(14.2)	(0.36)
Adjusted net earnings	$50.7	$1.33	$60.4	$1.51

2023 Outlook.

We have remixed our portfolio towards higher margin specialties since 2020 and have demonstrated an ability to act with urgency to proactively manage costs when necessary

Current view of the first half of 2023:

Revenue - will be constrained by economic uncertainty

GP rate - structural GP rate improvement will continue, but at a slower pace than Q4 2022

Adjusted SG&A – at similar levels as Q4 2022, while continuing to invest in our technology initiatives and our people

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 with its current leadership team and staff 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.

Footnote details on slide 15

	Kelly Professional & Industrial	Kelly Science, Engineering, Technology & Telecom	Kelly Education	Kelly OCG	Kelly International
Revenue⁽¹⁴⁾	$1.7B	$1.3B	$0.6B⁽¹⁵⁾	$0.5B⁽¹⁶⁾	$0.9B
GP Rate⁽¹⁴⁾	18.2%	23.5%	15.8%⁽¹⁵⁾	36.3%⁽¹⁶⁾	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⁽¹⁷⁾ RPO⁽¹⁷⁾ PPO⁽¹⁷⁾ Consulting	Life Sciences IT Finance Other Local Professional Niches

Our M&A activities are shifting our portfolio.

Fourth Quarter and Full Year 2022 Footnotes.

⁽¹⁾Constant Currency ("CC") represents year-over-year changes resulting from translating 2022 financial data into USD using 2021 exchange rates; ⁽²⁾See reconciliation of Non-GAAP Measures included in Form 8-K dated February 16, 2023; ⁽³⁾Includes the 2022 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 2022 results of RocketPower and PTS; ⁽⁵⁾Excludes the results of our Russian operations following the completion of the sales transaction in Q3 2022; ⁽⁶⁾Gain on investment in Persol Holdings of $50.0 million, $34.7 million net of tax, or $0.87 per share in Q4 2021. Loss on investment in Persol Holdings of $67.2 million, $48.8 million net of tax, or $1.28 per share in 2022 and gain on investment in Persol Holdings of $121.8 million, $84.5 million net of tax, or $2.12 per share in 2021; ⁽⁷⁾Gain on sale of assets includes gains from the sale of real property of $0.9 million, $0.6 million net of tax, or $0.02 per share in Q4 2022 and gains from the sale of real property of $6.2 million, $4.6 million net of tax, or $0.12 per share in 2022; ⁽⁸⁾Goodwill impairment charge of $10.3 million, $8.5 million net of tax, or $0.23 per share in Q4 2022 and $41.0 million, $33.9 million net of tax, or $0.89 per share in 2022; ⁽⁹⁾Restructuring charges of $4.1 million, $3.1 million net of tax, or $0.08 per share in Q4 2021 and $4.0 million, $3.0 million net of tax, or $0.07 per share in 2021; ⁽¹⁰⁾Gain on insurance settlement of $19.0 million, $14.2 million net of tax, or $0.36 per share in Q4 2021; ⁽¹¹⁾Loss on foreign currency matters includes of $20.4 million 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 2022; ⁽¹²⁾Loss on disposal related to the sale of our Russian operations of $18.7 million, $18.7 million net of tax, or $0.49 per share in 2022; ⁽¹³⁾U.S. credit facilities, net of standby letters of credit related to workers’ compensation; ⁽¹⁴⁾Kelly size and margin profiles are based on 2022 full year results; ⁽¹⁵⁾Kelly Education revenue and GP rate was $0.7B and 16.6%, respectively, including the results of PTS on a proforma basis; ⁽¹⁶⁾Kelly OCG revenue and GP rate was $0.5B and 36.7%, respectively, including the results of RocketPower on a proforma basis; ⁽¹⁷⁾Managed Service Provider (“MSP”); Recruitment Process Outsourcing (“RPO”); Payroll Process Outsourcing (“PPO”).