Slide 1: GEE Group Investor Presentation October 2016
G GEE Group Employing America since 1803 SKEGEEY AGILE? ACaneyes Goantmm OMNIONE fh. jesus GQ TAD rm Investor Presentation October 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 as amended, including statements regarding the business of the Company and its industry generally, b
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the Company's consolidated financial statements presentedon a GAAP basis, the Company periodically discloses non-GAAP Pro forma adjusted (adj.) EBITDA & adj. EBITDA, non-GAAP Proforma& adj. Income (Loss) from Operations, non-GAAP Proforma & adj. Working Capi
Slide 4: Company Overview
Company Overview Ss NYSE: JOB G
Slide 5: GEE Group Overview
GEE Group Overvi = Geographic presence in over 26 markets providing staffing solutions « Leading provider of specialty staffing services including Information Technology, Engineering, Healthcare, Accounting, and Commercial fields = Company was initially founded in 1893 and went public in 1967 = Comp
Slide 6: GEE Group Overview
G EE Group Overview GEE Group * Newmanagement team installed beginning in2o15 AGCRERDATA. + TPStaing Saluione * Diversified portfolio across 8 different TES wee brands a + Tr'Staffing Solutions AGILE” * Brand portfolio heavily-weighted towards high-growth professional staffing verticals + TSafing So
Slide 7: Best in Class Management with Proven CEO
G Best in Class Management with Proven CEO | ceeGroup 2015 and beyond: GEE Group 1994 to 2010: ¥ 7 7 ‘THE preeminent management team in AccuStaff / MPS Group (NYSE:MPS) staffing services with unmatched track record » In 1994, Derek Dewan named CEO of ¥ Proven track record of integrating AccuStaff/ M
Slide 8: Experienced Core Management
Experienced Core Management Andrew J. Norstrud, CFO — Mr. Norstrud joined General Employment in March of 2013 as CFO and has significant experience with public companies in many areas including financial reporting, restructuring for profitability and growth, acquisitions and technology. He is a CPA
Slide 9: Board Members
Board Members George A. Bajalia + President of Landmark Financial Corp.; served as President and Chief Executive Officer of the Prolianz Division of staffing conglomerate MPS Group Ine. (NYSE:MPS) and as its Chief Operating Officer William M. Isaae + Former Chairman of the Federal Deposit Insurance
Slide 10: GEE Key Differentiators
G GEE Key Differentiators GEE Group v¥ Management team with a proven track record of building billion-dollar staffing business ¥ Public company with access to capital markets v Leading provider of staffing services across attractive verticals ¥ Building highly-scalable platform ¥Y Long-term associat
Slide 11: Staffing Industry Overview
Staffing Industry Overview gS NYSE: JOB G
Slide 12: U.S. Staffing Industry Overview
U.S. Staffing Industry Overview — 142 BN Industry cee Group nization and outsou isin the C-suite and board room * Renewed focus on op’ g post-cr' * Secular shift to temporary labor underway: Inthe 5 years post recession. U.S. staffing firms created more new jobs than any other industry U.S. staffing
Slide 13: Drivers of Secular Shift to Temp Staffing
Drivers of Secular Shift to Temp Staffing | SUPPLY DEMAND | | Shiftin attitude: Preference Efficiency: Variable cost | of flexible work hours structure | | Necessity: Higher Just- in- time labor: More | unemployment; part-time companies using mix of | work € permanent and temp | Pay/benefits: Attime
Slide 14: U.S. Staffing Market Breakdown
G U.S. Staffing Market Breakdown GEE Group Professional market represents approximately half of the addressable marketin the U.S. + Irstaffing + Healthcare * Finance/ Accounting Office / Clerical * Industrial + Engineering + Legal * Clinical / Scientific ‘Commercial Staffing 2011A-2017P Growth (CAGR
Slide 15: U.S. Professional Staffing Market Breakdown
U.S. Professional Staffing Market Breakdown cee Group Professional staffix T?Staffing ae Glincat) Marketing / ‘Scientific april i Health = Other : ool Engineering a $3.6 Finnce/Aosting I ae Fs Clinical / Scientific = iS Marketing /Creative eat ag Education a | (5) KKH aK 2H maoiP zoe CO
Slide 16: Focused On Growth Sectors
Focused On Growth Sectors Professional Staffing Services (Est. 2016 Temp. Staffing Mkt. Size) Healilican - 9 billion je? IT $29.1 billion Engineering $7.6 billion
Slide 17: Information Technology Staffing Market
Information Technology Staffing Market 2016 Estimated Spend Largest IT staffing markets $797 $978um Seattle-Tacoma: ‘ Chicago-Naperville- Bellevue, WA. tone $9420m a ¥ San Francisco Oakland-Hayward, CA quincy, MA-NH $1,753um New York-Newark- ‘Alexandria, DC-VA-MD.WV $832um $1,116 7 ‘ Atlahta Sandy S
Slide 18: Staffing Segments/Opportunities
Staffing Segments/Opportun: ae 2016 est. Travel . Nurses $in $3.9 billions $14.9 IL $476mm billion PA $405 Per Diem Locum i OBA eeisian Nurse Tenens 14% MT @a7emam $3.6 (Drs.)$ Growth Source: Staffing Industry Analysts OSC
Slide 19: Industrial Staffing Sector Growth
Industrial Staffing Sector Growth Largest Staffing Segment 6% CAGR 2013- 2015 5°o GR 2016 est. @ @; 545 $40 billion est. 2017 $32-9 2016 ®@ 2015 est. $31.3 2014 o $20.5 rita KamyoeVRaRE 2013 7
Slide 20: Industrial Staffing Sector Capabilities
Industrial Staffing Sector Capabilities Warehouses - “E” commerce Duppores - Logistics + Advanced Mfg. & Robotics & Automation Support + Construction Support Just-in- Time Labor OSC
Slide 21: Company Position
Company Position Ss NYSE: JOB G
Slide 22: National Staffing Brands
G National Staffing Brands GEE Group Profe: > TTStaffing Solutions ¥ GEE Group has leading brands SSlCE in the IT, engineering, finance T7Staffing Solutions and acconnting and henlthoars A ashey ef staffing spaces and these : TiSiion: Solutions. brands are continuing to grow a nationwide + TT Staffi
Slide 23: Office Locations — National Presence
Office Locations — National Presence C= GEE Group
Slide 24: Growth Strategy
Growth Strategy Ss NYSE: JOB G
Slide 25: Growth Strategy
G »wth Strategy GEE Group Diverse opportunity set exists today across both organic opportunities and via M&A OrganicGrowth Opportunities Strategic Growth Opportunities + Provide new, innovative & enhanced menu of + Strengthen existing service offerings & enhance mkt. professional service offerings t
Slide 26: Consolidation Opportunity
G solidation Opportunity GEE Group mented market presents massive roll-up potential: $6.0 BN eae "ccs wieetted ee Broder Hl O Apna Top1so0 Companies = ane, KFORCE ~50% U.S. Market Companies Revenue $20MM All Others = ~50% U.S. Market . Rey ~ 15,000 Companies seco [_ GEE Goat: Exceed #1 Billion in Re
Slide 27: Recent Acquisitions
G itions GEE Group Recent Acqu In chronological order from 2015 to 2016 YTD: + Scribe Solutions provides Emergency Rooms (ER) & Physician Practices with oxumicns highly trained medical scribes for personal assistant work in connection with electronic medical records (EMR) S —-* Agile Resources deliv
Slide 28: Financial Overview
Financial Overview Ss NYSE: JOB G
Slide 29: Business Model Highlight: GEE Group
G Business Model Highlight: GEE Group Evolving platform focus to concentrate on professional staffing business lines Selected Pro Forma Statistics FY16E® FYi7E® Long-Term Target Professional Revenue " re veniat! a (sof total) 6%. 85% Greater than 95% Commercial Revenue = as — (% of total) sie 2 a Co
Slide 30: Staffing Services Revenue Mix
ffing Services Revenue Mix oe 109) 6/30/16 3" Qtr. Staffing Services Revenue m 76% Professional Staffing © 68%Professional Contract Staffing @ 24%Commercial Staffing 1B 8%Direct Hire OSC
Slide 31: Gross Margin Profile
Gross Margin Profile Contract Light Professional Third Qtr. Industrial Contract & Direct 6/30/16 Hire % of Revenues 24° 76% Combined ‘combine: neo ye Gross Margin 43:10 3370 | Target Gross De ceype eazeot Margin Range ee he 24:32 * Data derived from 6/30/16 Quarterly Unaudited Financial Information
Slide 32: Strengthened Balance Sheet
engthened Balance Sheet Highlights Shelf Registration (Form S-3) Filed for $75 Million Common Stock Equity Offering Raised $7.8 Million (Shelf Takedown) Long Term Subordinated Debt Offering Raised $4.2 Million Convertible Pfd. Stock Offering Provided $2 in Additional Common Stock Equity (converted)
Slide 33: Historical & Pro-Forma & Non-GAAP Financial Highlights
[ORICAL & PRO-FORMA & NON-GAAP FINANCIAL HIGHLIG: (Forward-Looking Statements) + 2016 Third Quarter (6/30/16 Form 10Q) Revenue of $22 million * 2016 Third Quarter (6/30/16) EBITDA of $1.5 million and adjusted EBITDA of million * Fiscal Year Ending 9/30/16 estimated annualized pro-forma (based on 3rd
Slide 34: Reconciliation of Non-GAAP Adjusted EBITDA to GAAP Net Income (Loss)
Reconciliation of Non-GAAP Adjusted EBITDA to GAAP Net Income (Loss) Reconciliation of Non-GAAP Adjusted EBITDA to GAAP Net Income (Loss) Quarter Ended June 30, (In thousands) 2016 2015 Net income (Net loss), GAAP $ peg 18 Interest expense, net 418 193 Taxes 1 Depreciation and amortization 518 470 E
Slide 35: Reconciliation of Non-GAAP Adjusted Income from Operations
onciliation of Non-GAAP Adjusted In from Operations Reconciliation of Non-GAAP Adjusted Income (Loss) from Operations Quarter Ended June 30, (In thousands) 2016 2015 Income (loss) from operations, GAAP $ 522 $ 207 Stock compensation & stock option 202 46 expense Acquisition, integration & 29 5 restr
Slide 36: GEE Group Investment Merits
GEE Group Investment Merits Staffing is a Terrific Market $142 billion domestic industry with strong growth potential + Secular changes in the U.S. economy requiring “on-demand labor” have led to very favorable trends in the staffing industry + Staffing continues to bea highly fragmented market that
Slide 37: Questions?
Questions? GEE Group NYSE: JOB G