BBSI Investor Presentation - July 2019

1. NASDAQ: BBSI | JULY 2019
IN VESTOR
PR ESEN TATION

2. FORWARD-LOOKING STATEMENTS
Statements in this presentation about future events or performance, including expectations for market opportunities and capacity,
growth in new clients, the effectiveness of our referral-based channels, rate of client retention, gross billings and diluted earnings
per share, are forward-looking statements which involve known and unknown risks, uncertainties and other factors that may cause
our actual results to be materially different from any future results expressed or implied by such forward-looking statements.
Factors that could affect future results include economic conditions in our service areas and their effect on revenue levels, the
effect of changes in our mix of services on gross margin, our ability to retain current clients and attract new clients, difficulties with
integrating clients into our operations, the availability of financing or other sources of capital, the potential for material deviations
from expected future workers' compensation claims experience, the workers’ compensation regulatory environment in our primary
markets, litigation costs, the effect of government and investigations, security breaches or failures in our information technology
systems, the effect of escalating medical costs on our business, the collectability of accounts receivable, the carrying value of
deferred income tax assets and goodwill, and the effect of conditions in the global capital markets on our investment portfolio,
among others. Other important factors that may affect our prospects are described in our 2018 Annual Report on Form 10-K.
Although forward-looking statements help to provide complete information about our Company, investors should keep in mind that
forward-looking statements are less reliable than historical information. We undertake no obligation to update or revise forward-
looking statements in this presentation to reflect events or changes in circumstances that occur after the date of this presentation.
2

3. PURPOSE FOR APPROACHING
THE MARKET
3

4. 4
VISION: IMPROVE THE PROBABILITY
OF SMALL BUSINESS SUCCESS
Source: Bureau of Labor Statistics.
Day 1:
100%
5 years:
48%
10 years:
32%

5. HOW WE ARE POSITIONED
5
• Engage as a tactical subordinate
• Minimal integration with the business
TYPICAL OUTCOME:
TOOLS, SYSTEMS, PROCESSES
• Engage as an expert guide
• Highly integrated with the business
TYPICAL OUTCOME:
WHITE PAPERS
TYPICAL OUTCOME:
BLUEPRINT TO
MORE
EFFICIENTLY RUN
BUSINESS

6. 6
VOLUME
R E - L E V E R
I N F L E C T I O N
P O I N T
I D E A
O P E R AT I O N AL
P L AT E AU
T I M E
R E - L E V E R
R E - L E V E R
OUR VIEW TO
THE BUSINESS CYCLE

7. 7
POTENTIAL BRAND IMPACT
1,000 ~6,500 ~20,000 ~60,000+
TODAY

8. FIELD STRUCTURE & FOOTPRINT
8
112 teams housed in
63 physical locations
Decentralized structure
Most clients within
50-mile radius of
BBSI branch

9. HOW WE BUILD & SUPPORT
OUR TEAMS
$500K investment
per team
Capacity of ~90 clients
Average: 30
employees per client
Ability to lever
operating margins
9

10. SEASONED
PROFESSIONAL
TRAITS OF BBSI PROFESSIONALS
10
ENTREPRENEURIAL
INNATELY
CURIOUS
OWNERSHIP
MENTALITY
STRONG BUSINESS
ACUMEN

11. HOW WE BUILD PIPELINE
11
PATH TO MUTUAL
UNDERSTANDING
REFERRAL-BASED CHANNELS
~25% YIELD
+90% CLIENT
RETENTION

12. HOW WE ALIGN WITH OUR CLIENTS
12
OUTCOMES
Stability
Capacity
Leverage
Profitability
Predictability
90%+ Retention

13. MARKET OPPORTUNITY
13
BBSI
works with
approximately
6,500 businesses
– roughly 3%
BBSI works with
less than 1%
of target market
in U.S.
Source: Statistics of U.S. Businesses, SBA Office of Advocacy, Updated Feb 9, 2015.

14. CURRENT STATE
14
Leverage net client add to
support referrals
Expand within existing
markets—build branches
within branches
Penetrate adjacent markets
to meet demand

15. FUTURE STATE
15
Leverage net client add to
support referrals
Expand within existing
markets—build branches
within branches
Penetrate adjacent markets
to meet demand

16. 63 physical locations
17 Mature = run rate of $100 million +
20 Emerging = run rate of $30-$100 million
26 Developing = run rate of $1-$30 million
BRANCH STRATIFICATION
16

17. $404
$537
$636
$741
$841
$920 $941
2012 2013 2014 2015 2016 2017 2018
ANNUAL NET REVENUE GROWTH
17
$Millions

18. ANNUAL GROSS BILLINGS
& PEO CLIENT GROWTH
18
1. PEO customers defined as the active number of customer Federal Employee Identification Numbers. Please take into consideration this figure is a broad estimate of Company’s actual client count.
However, the Company does believe the number represents an effective proxy for the health of its business. 2018 client count represents the Company’s estimated client count at the end of the year.
2. Guidance effective on April 30, 2019.
$2,081
$2,817
$3,357
$4,016
$4,693
$5,301
~$5,663
~$6,200
2012 2013 2014 2015 2016 2017 2018 Thru Q1-20²
Gross Billings ($Millions)
~8% expected gross
billings growth for next
rolling 12-month period²
~2,200
~2,600
~3,000
~4,000
~4,900
~5,600
~6,400
PEO Customers¹

19. $3.47
$2.55
$3.30
$4.98
$5.40
2015 2016 2017 2018 2019E¹
ANNUAL DILUTED EPS
PERFORMANCE
191. Guidance effective on April 30, 2019. Assumes effective tax rate of ~18% and the expected range for workers’ compensation expense as a percentage of gross billings to be 4.6% to 4.8%.

20. 20
DRIVERS OF FUTURE GROWTH
ORGANIC GROWTH
New client stack
Runoff
Same customer sales
LEVERAGE
Capacity utilization against infrastructure
SCALE
Expansion

21. $4,016
$4,693
$5,301
$5,663
2015 2016 2017 2018
Annual Gross Billings
($Millions)
Trading Data (July 1, 2019)
Stock Price $80.69
52 Week High/Low $98.76/$53.10
Avg. Daily Vol. (3 mo.) 39,107
Shares Outstanding 7.4M
Institutional Holdings 81%
Insider Holdings 4%
Valuation Measures
Market Cap $597.9M
P/E (ttm) 13.8x
Dividend Payout Ratio (ttm) 17%
Financial Highlights (March 31, 2019)
Gross Billings (ttm) $5,703M
Income from Ops. (ttm) $45.4M
Diluted EPS (ttm) $5.86
Cash¹ (mrq) $536.7M
Total Assets (mrq) $817.9M
Total Debt (mrq) $4.1M
Total Liabilities (mrq) $698.0M
Total Equity (mrq) $119.9M
Source: CapitalIQ & Company filings.
ttm = trailing twelve months; mrq = most recent quarter.
1. Represents cash and cash equivalents, investments, and restricted cash and investments
KEY STATS: BBSI (NASDAQ)
21
Clients ~4000 ~4900 ~5600 ~6400

22. NASDAQ: BBSI | JULY 2019
INVESTOR CONTACT
Cody Slach
Gateway Investor Relations
949-574-3860
BBSI@gatewayir.com