Kelly Services, Inc. · NASDAQ:KELYA

Kelly Services — Q4 2023 Earnings Presentation

17 slides from Kelly Services's earnings presentation, Feb 15, 2024

  1. Slide 1: Q4 2023

    Q4 2023 YT N fo) N a) > c © =) = He} J) ut

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation contains statements that are forward looking in nature and, accordingly, are subject to risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not

  3. Slide 3: Non-GAAP Measures

    Non-GAAP Measures Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the 2023 restructuring charges, the 2023 impairment charge, the 2023 transaction costs and tax adjustments related to the sale of our EMEA staffing operations, the 2022 sale of th

  4. Slide 4: Kelly

    Kelly

  5. Slide 5: Full Year 2023 Financial Summary

    « Full Year 2023 Financial Summary Change Increase/(Decrease) Actual Results As Reported As Adjusted”) $4.8B (2.6%) (2.6%) Revenue 4) ) (3.2%) CC (3.2%) CC Gross Profit Rate 19.9% (50) bps (50) bps $24.3M 65.0% 1.2% Earnings from Operations ' ' 73.8% CC” 2.8% CC” Adjusted EBITDA $109.4M 3.6% Adjuste

  6. Slide 6: Fourth-Quarter 2023 Financial Summary

    « Fourth-Quarter 2023 Financial Summary Change Increase/(Decrease) Actual Results As Reported As Adjusted”) $1.2B (0.1%) (0.1%) Revenue ¢ a) (1.3%) CC (1.3%) CC Gross Profit Rate 19.3% (100) bps (100) bps $7.3M 60.5% 58.5% Earnings from Operations ' ' 61.8% CC” 57.5% CC” Adjusted EBITDA $32.5M 35.1%

  7. Slide 7: Fourth-Quarter 2023 Revenue

    « Fourth-Quarter 2023 Revenue Reported Constant Currency” Total (0.1%) (1.3%) Professional & Industrial (11.5%) (11.5%) Science, Engineering & (5.1%) (5.2%) Technology Education 27.1% 27.1% Outsourcing & Consulting (3.1%) (3.3%) International 5.1% (1.5%) "==" Footnote details on slide 20 of the Earn

  8. Slide 8: Fourth-Quarter 2023 Gross Profit Rate

    Fourth-Quarter 2023 Gross Profit Rate 21.0% 20.5% 20.3% 20.0% | 19.5% (40) bps |] 19.3% 19.0% (60) bps 18.5% 18.0% 17.5% 17.0% : , T 1 Q4 2022 GP Rate Operating Perm Fees Q4 2023 GP Rate Segments * Operating Segments gross profit rate reflects unfavorable business mix, partially offset by lower empl

  9. Slide 9: Fourth-Quarter 2023 SG&A

    Fourth-Quarter 2023 SG&A $in millions $250 $240 $236 9 $2 $231 $230 — s _ “ee || $210 ($22) $200 $190 $180 $170 $160 $150 Q4 2022 SGRA Operations Transformation Transaction FX Q4 2023 SG&A costs 3) costs a * Expenses in Operations decreased as a result of workforce reductions related to our transfor

  10. Slide 10: Fourth-Quarter 2023 Financial Summary

    « Fourth-Quarter 2023 Financial Summary Change Increase/(Decrease) Actual Results As Reported As Adjusted”) $1.2B (0.1%) (0.1%) Revenue ¢ a) (1.3%) CC (1.3%) CC Gross Profit Rate 19.3% (100) bps (100) bps $7.3M 60.5% 58.5% Earnings from Operations ' ' 61.8% CC” 57.5% CC” Adjusted EBITDA $32.5M 35.1%

  11. Slide 11: Fourth-Quarter 2023 EPS Summary

    Fourth-Quarter 2023 EPS Summary Sinmillions except per share data Net earnings (loss) $11.4 $0.31 Gain on sale of assets, net of taxes Goodwill impairment charge, net of taxes Unrealized loss on forward contract, net of taxes” 27 0.07 Transaction costs, net of taxes 6.4 0.18 Restructuring charges, n

  12. Slide 12: Fourth-Quarter 2023 Liquidity

    Fourth-Quarter 2023 Liquidity Sinmillions $600 $500 $454 $427 $400 $300 $200 $100 $o Q4 2022 Q4 2023 gw Cash, net of Short-term Borrowings mw Borrowing Capacity" * As of the end of Q4 2023, we continue to maintain more than $400 million of available liquidity to fund organic and inorganic growth ini

  13. Slide 13: Business Transformation Overview

    « Business Transformation Overview Comprehensive initiative to build on our strategic progress. In 2023, we successfully delivered on structural cost optimization, and we will continue to execute on opportunities to accelerate profitable top- and bottom-line growth. Delivering on three key outcomes:

  14. Slide 14: Kelly

    Kelly

  15. Slide 15: Sale of European Staffing Operations

    « Sale of European Staffing Operations With the closing of the European staffing transaction in January 2024, we have unlocked more than $100 million of capital to reinvest in organic and inorganic growth in our North American staffing and global MSP and RPO businesses. European staffing operations

  16. Slide 16: 2024 First Half Outlook

    2024 First Half Outlook With a streamlined operating model now comprising four business units with market-leading positions in North American staffing and global MSP and RPO solutions, we remain committed to the execution of our specialty growth strategy and transformation initiatives. Assumes a con

  17. Slide 17: Slide 17

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