FINANCIAL APPENDIX

3

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

Our financial journey: Revenue.

CAGR: (3.8%)⁽⁹⁾

Footnote details on Financial Appendix slides 13-14

Our financial journey: Gross Profit.

CAGR: (1.9%)⁽⁹⁾

Footnote details on Financial Appendix slides 13-14

Our financial journey: Adjusted EBITDA⁽¹⁰⁾.

CAGR: (15.2%)⁽⁹⁾

Footnote details on Financial Appendix slides 13-14

Our financial journey: Free Cash Flow⁽¹¹⁾.

Footnote details on Financial Appendix slides 13-14

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 Financial Appendix slides 13-14

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 Financial Appendix slides 13-14

Fourth Quarter 2022 Revenue Trends.

	Reported⁽¹⁵⁾	Constant Currency^(13),(15)	Organic^{(13),(16),(17)}
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 Financial Appendix slides 13-14

Fourth Quarter 2022 Gross Profit Rate Growth.

Footnote details on Financial Appendix slides 13-14

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 Financial Appendix slides 13-14

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 Financial Appendix slides 13-14

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

Adjusted EBIDTA Non-gaap reconciliation.

$ in millions

Footnote details on Financial Appendix slides 13-14

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.

Q4 and Full Year 2022 Footnotes.

⁽¹⁾Kelly size and margin profiles are based on 2022 full year results; ⁽²⁾Kelly Education revenue and GP rate was $0.7 billion and 16.6%, respectively, including the results of PTS on a proforma basis; ⁽³⁾Kelly OCG revenue and GP rate was $0.5 billion 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⁾Softworld includes non-Kelly Q1 2021 for comparability; ⁽⁶⁾RocketPower and Pediatric Therapeutic Services includes non-Kelly Q1 +1 week of 2022 and all of 2021 for comparability; ⁽⁷⁾Working Capital excludes impact of CARES Act payroll tax deferrals; ⁽⁸⁾Share repurchase plan approved November 2022; ⁽⁹⁾CAGR is for 2018-2021; ⁽¹⁰⁾Adjusted EBITDA excludes from Net Income: (1) equity in earnings of affiliate, (2) income taxes, (3) other income or expenses net, (4) Persol related gains or losses, (5) gains or losses on asset sales, (6) asset impairment charges, (7) gains on insurance settlement, (8) gains or losses on foreign currency matters, (9) restructuring expenses and (10) depreciation & amortization; ⁽¹¹⁾Free Cash Flow (“FCF”) is defined as net cash from operating activities minus capital expenditures; ⁽¹²⁾FCF includes the cash outflows of $30 million in 2021 and $87 million in 2022 used to repay payroll taxes previously deferred under the CARES Act and $48 million in 2022 for income taxes related to the sale of Persol Holdings common stock; ⁽¹³⁾Constant Currency ("CC") represents year-over-year changes resulting from translating 2022 financial data into USD using 2021 exchange rates; ⁽¹⁴⁾See reconciliation of Non-GAAP Measures included in Form 8-K dated February 16, 2023; ⁽¹⁵⁾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; ⁽¹⁶⁾Excludes 2022 results of RocketPower and PTS; ⁽¹⁷⁾Excludes the results of our Russian operations following the completion of the sales transaction in Q3 2022; ⁽¹⁸⁾U.S. credit facilities, net of standby letters of credit related to workers’ compensation; ⁽¹⁹⁾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, gain on investment in Persol Holdings of $35.8 million in 2019 and loss on investment in Persol Holdings of $96.2 million in 2018 represents the changes in fair value of the investment; ⁽²⁰⁾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; ⁽²¹⁾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; ⁽²²⁾2022 loss on disposal represents the write-off of the net assets of our Russian operations that were sold in Q3 2022; ⁽²³⁾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; ⁽²⁴⁾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;

Q4 and Full Year 2022 Footnotes.

⁽²⁵⁾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; ⁽²⁶⁾2019 asset impairment charge of $15.8 million represents the write-off related to a technology development project; ⁽²⁷⁾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.