Korn Ferry : Q1 FY'2020 Earnings Presentation

September 05, 2019 at 04:27 pm EDT

KORN FERRY

FY'20 QTR.1Earnings conference call

September 5, 2019

SAFE HARBOR STATEMENT

Forward-Looking Statements

Statements in this presentation that relate to future results and events are based on Korn Ferry's current expectations. You are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties that are beyond the control of Korn Ferry. For a detailed description of such risks and uncertainties, please refer to Korn Ferry's earnings release and its periodic filings with the Securities and Exchange Commission.

Non-GAAP Financial Measures

This presentation includes financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). This non-GAAP disclosure

has limitations as an analytical tool, should not be viewed as a substitute for financial information determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may

be presented by other companies. Please refer to slides 21 to 26 for a reconciliation of

each of the non-GAAP financial measures included in this presentation to the closest GAAP measure.

Korn Ferry is a global organizational consulting firm, bringing togetherastrategy and talent to drive superior performance for our clients.

Our purpose is to help people and organizations exceed their potential.

Korn Ferry is More Than

Successful strategy implementation is about execution, and successful execution is about getting the people, organizational, and cultural aspects right.

More thantalent acquisition

More than leadership development

More than rewards

We focus onmaking change happen

Substantially different today than we were even a decade ago, we've evolved from a mono-line business to a global organizational consulting firm, a category we created. We're now a company for all seasons focused on the long game with our clients.

By taking a unified approach to the marketplace, we're seizing the opportunity to make the whole of Korn Ferry greater than the sum of our parts.

INVESTMENT HIGHLIGHTS

GLOBAL ORGANIZATIONAL CONSULTING FIRM, BRINGING TOGETHER STRATEGY AND TALENT TO DRIVE SUPERIOR PERFORMANCE FOR OUR CLIENTS

STRONG FINANCIAL PERFORMANCE & ROBUST FREE CASH FLOW GENERATION

DIVERSE BASE OF BLUE-CHIP CLIENTS

MULTI-BILLION DOLLAR MARKET OPPORTUNITY WITH COMPELLING INDUSTRY AND DEMOGRAPHIC TRENDS

ESTABLISHED MANAGEMENT TEAM WITH PROVEN TRACK RECORD OF ORGANIC AND M&A FUELED SUCCESS

One of the world's most comprehensive people and organizational databases.

In our hands it's more than just data. We use it to build the DNA of outstanding leaders, effective organizations,

4bn

More than 4 billiondata points collected.

12,000

Organizational benchmark data on 12,000entities.

3,900

More than 3,900individual success profiles covering over almost 30,000job titles.

69m

Over 69 millionassessments taken.

20m

Rewards data for 20 millionpeople.

129

Management data on

129countries.

high performance cultures and game-changing reward programs.

98%

Partner to 98% of Fortune's 2019 Top 50 Most Admired Companies.

KORN FERRY AT A GLANCE

A global organizational consulting firm, bringing together strategy and talent to drive superior performance for our clients

	28
$1,926M*	offices	52 offices
in NA
in EMEA

FEE REVENUE	26 offices

	in APAC

Executive Search - 40%	11 offices
in LATAM
Consulting - 30%
Advisory- 43%
Products & Licenses - 13%

RPO - 9%
Professional Search- 8%	2,600+	8,600	13,800+	19%

	consulting	employees	clients	clients buying
	professionals	worldwide	worldwide	multiple services

*FY'19 total yr. fee revenue

GROWTH STRATEGY

Create a unique end-to- end organizational consulting firm. Extend and reposition the Korn Ferry brand.

Continue to evolve go-to- market activities through structured, programmatic account planning along with strategic investments in account management talent.

Leverage data & intellectual property creating derivative services & products.

Continue to pursue strategic acquisitions.

Using an outside-in approach, create scalable, repeatable outcome-based solution sets.

OUR EXPERTISE

		INTEGRATED MARKET OFFERINGS
Delivering	Driving	Delivering on	Getting ahead	Building an	Transforming your
on yourM&A	organizational	yourfunctional	of digital disruption	inclusive	organization
promises	efficiency	strategy		organization

KORN FERRY

SOLUTIONS

	Organization		Assessment		Talent
	strategy		and succession		acquisition
	Organization design		Success profiles		Executive search
	People strategy and		Leadership		Board and CEO services
	employee experience		assessments		Professional search
	Top team performance		Succession planning		Recruitment process
	Culture transformation				outsourcing (RPO)
	Making change happen				Project recruitment

	Leadership		Rewards
	development		and benefits
	Enterprise leadership		Executive pay
	Custom leadership		and governance
	Leadership accelerators		Employee rewards
			Workmeasurement
			Salesforce
			compensation

KORN FERRY

ADVANCE

(B2C)

KORN FERRY

PRODUCT

SUITE

KF DIGITAL

Assess

Listen	Recruit	Perform	Pay
	Select

LEADING MARKET SHARE

DIFFERENTIATED POSITIONING, AND STRONG FINANCIAL PERFORMANCE (FY'20 Qtr. 1)

*Industry		Fee Revenue by Segment ($M)
$466	$491		$485
Specialties	$93
$77		$96

	Industrial - 29%	$195		$207		$196


	Life Sciences/HC - 17%

	Technology - 14%
				$193				$191	$193


	Financial Services - 18%
		FY'19 Q1		FY'19 Q4	FY'20 Q1
	Consumer - 16%
			Exec. Search		Advisory		RPO & Prof. Search
	Education/Other - 6%

	**Adj. EBITDA Margin (Non-GAAP)
		16.7%
*Geographic	15.2%		15.5%

Footprint
	FY'19 Q1	FY'19 Q4	FY'20 Q1
NAM - 48%	***Adj. Diluted EPS ($) (Non-GAAP)
EMEA - 30%		$0.88
APAC - 17%
LATM - 5%	$0.78
		$0.76

*FY'19 Total Yr. Actual Fee Revenue	FY'19 Q1	FY'19 Q4	FY'20 Q1

Differentiated professional services firm with attractive financial attributes

Attractive topline growth rates (5 Yr. CAGR% = 14.9%)
Durable / highly profitable revenue sources from a growing mix of outsourced services (RPO) and products & licenses
Industry leading profit margins
High free cash flow generation
Strong balance sheet
Accelerating ROE/ROIC
Solutions are powered by proprietary, research based, intellectual property & data
Go-to-marketwith deep global industry knowledge

**Earning Before Interest, Taxes, Depreciation & Amortization Adjusted to Exclude I Integration/Acquisition Cost & Tradename Write-offs
***Diluted Earnings Per Share Adjusted to Exclude Integration/Acquisition Costs & Tradename Write-offs Net of Tax	10
© 2019 Korn Ferry. All rights reserved

ADVISORY

43% OF FEE REVENUE (FY'20 Qtr. 1)

1,758 Consultants & Execution Staff

(3,635 Employees)

$821M** of Annual Fee Revenue

$569m** Consulting Services

$252m** Products & Licenses

	Fee Revenue ($M) & Adj.
	EBITDA* Margin% (Non-GAAP)
**Industry	17.7%	18.8%	17.7%
Specialties
	$207
	$195	$195
Industrial - 31%	$3
$3	$3
$43
Life Sciences/HC - 11%	$41	$42

Technology - 12%	$42	$46	$42
Financial Services - 18%

Consumer - 16%	$48	$52	$49
Education/Other - 12%
	$61	$63	$59
	FY'19 Q1	FY'19 Q4	FY'20 Q1
	Assessment & Succession	Org. Strategy
**Geographic	Rewards & Benefits		Leadership Development
Other		Adj. EBITDA Margin %
Footprint	Conslt. & Exec. Staff / Utilization***

	67%	68%	67%
NAM - 38%
EMEA - 39%
APAC - 19%
LATM - 4%	1,621	1,699	1,758
	FY'19 Q1	FY'19 Q4	FY'20 Q1

**FY'19 Total Yr. Actual Fee Revenue	Conslt. + Exec. Staff - Ending


		***Exec. Staff Utilization

World class advisors for comprehensive human capital challenges

Delivering on your M&A	Driving organizational
promises		efficiency
Getting ahead of digital	Building an inclusive
disruption		organization
Transforming your	Delivering on your functional
organization		strategy
ORGANIZATIONAL	ASSESSMENT &	LEADERSHIP	REWARDS &
STRATEGY	SUCCESSION	DEVELOPMENT	BENEFITS

Organizational	Success	Enterprise	Executive pay
design	profiles	leadership	& governance
People strategy	Leadership	Custom	Employee
Top team	assessments	leadership	rewards

performance	Succession	Leadership	Work
Culture	planning	accelerators	measurement

transformation			Salesforce
Making change			compensation

happen

*Earning Before Interest, Taxes, Depreciation & Amortization Adjusted to Exclude Integration / Acquisition Costs & Tradename Write-Offs
***Calculated by Dividing the Number of Full-Time Execution Consultants Who Recorded Time to an Engagement During the Period by the	© 2019 Korn Ferry. All rights reserved	11
Total Available Working Hours During the Same Period.

EXECUTIVE SEARCH

40% OF FEE REVENUE (FY'20 Qtr. 1)

569 Consultants Worldwide

(1,979 Employees)

+6,700* Assignments Per Year

$775M* of Annual Fee Revenue

	Fee Revenue ($M) & **EBITDA
*Industry	Margin % (Non - GAAP)	Services
Specialties	24.2%	26.0%	25.3%		Leading provider of the search for

	$193	$191	$193		leadership talent
Industrial - 28%
$8	$8	$8		C-Level/sr. mgmnt. / BOD = 71%
Life Sciences/HC - 18%	
Technology - 14%	$26	$24	$27
$47	$45	$46		Other executive position = 29%
Financial Services -21%
Consumer - 15%	$112	$114	$112		World's largest network of experienced
Education/Other - 4%
					& specialized consultants
	FY'19 Q1	FY'19 Q4	FY'20 Q1		Use cutting-edge proprietary tools,
	NAM		EMEA
			resources & methodologies to assess
	APAC		LATM
*Geographic	EBITDA Margin %			& benchmark candidates
Footprint	Consultants & Productivity		for best fit

	$1.42	$1.37	$1.36
NAM - 59%
EMEA - 24%
APAC - 14%	545	565	569
LATM - 3%

	FY'19 Q1	FY'19 Q4	FY'20 Q1
	Consultants - Period End
	Fee Rev. / Avg. Consultant Annualized ($M)
*FY'19 Total Yr. Actual Fee Revenue & Assignments	**Earning Before Interest, Taxes, Depreciation & Amortization

RPO & PROFESSIONAL SEARCH

17% OF FEE REVENUE (FY'20 Qtr. 1)

$330M** of Annual Fee Revenue

(3,080 Employees)

Fastest Growing Service -

3 Yr. CAGR% = 18.5%

**Industry	Fee Revenue ($M) & EBITDA*
Specialties	Margin % (Non-GAAP)
Industrial - 26%	16.2%	16.9%	16.8%
	$96
Life Sciences/HC - 28%		$93
	$4
Technology - 16%		$4
Financial Services - 11%
$77
Consumer - 15%	$19	$20
Education/Other - 4%	$4

	$18	$22	$25

**Geographic	$19
Footprint
NAM - 51%	$36	$48	$47
EMEA - 23%

APAC - 21%
LATM - 4%
	FY'19 Q1	FY'19 Q4	FY'20 Q1

NAM		EMEA


APAC		LATM

*EBITDA Margin %

**FY'19 Total Yr. Actual Fee Revenue

*Earnings Before Interest, Taxes, Depreciation & Amortization

Talent acquisition services focused on professional level full-time permanent placement hiring

IT, scientific, technical, operations, sales & marketing, HR & finance positions paying approximately $75k to $225K
Unique global service delivery capability (50 offices in 23 countries including
7 TDC's)
46%single engagement / small project based recruitment
54%full recruitment process outsourcing (RPO)

RPO / project solutions are customized to integrate, enhance & extend an organizations recruiting capabilities and are backed by our proprietary assessment & selection tools & compensation database

FINANCIAL CHARACTERISTICS

Strong Revenue Growth Rates

Attractive Adjusted EBITDA Margins*

EXECUTIVE SEARCH ADVISORY

RPO & PROFESSIONAL SEARCH

EXECUTIVE SEARCH

(Excluding Allocated Corps. Expenses)

ADVISORY

(Excluding Allocated Corp. Expenses)

RPO & PROFESSIONAL SEARCH

(Excluding Allocated Corp. Expenses)

KF CONSOLIDATED

(Including Corporate Expenses)

			LONG TERM
FY'18	FY'19	FY'20 Q1	TARGET**
14.8%	9.3%	0.1%	5%-10%
7.9%	4.6%	0.1%	10%-15%
22.1%	20.9%	24.0%	10%-20%

			LONG TERM
FY'18	FY'19	FY'20 Q1	TARGET**
22.5%	25.0%	25.3%	22%-26%
18.3%	18.4%	17.7%	17%-19%
15.6%	16.5%	16.8%	16%-18%
15.7%	16.1%	15.5%	15%-18%

Strong Cash Flow Generation

Strong free cash flow conversion from *Adjusted EBITDA

*Earnings Before Interest, Taxes, Depreciation & Amortization Adjusted to Exclude Restructuring Charges (Net of Recoveries), Integration /
Acquisition Costs & Tradename Write-Offs
**A quantitative reconciliation to long term targets for the most directly comparable GAAP measure (Net Income Attributable to Korn / Ferry) is
not available without unreasonable efforts because of the uncertainty and variability of the nature and amount of future charges, costs, and	© 2019 Korn Ferry. All rights reserved	14
other items included in Net Income Attributable to Korn / Ferry. These items depend on various factors and could have a material impact on

the Company's results reported under GAAP.

CONSOLIDATED FINANCIAL TRENDS ($M)

FY'18	FY'19		FY'20 Q1***

$1,767	$1,926	Fee Revenue	$485
13%	9%	% Growth	4%
$278	$311	Adj. EBITDA*	$75
15.7%	16.1%	Margin (%)	15.5%
$2.72	$3.31	Adj. EPS($)**- Diluted	$0.76
21%	22%	% Growth	(3%)
		Restructuring /
($10)	($113)	Integration / Acquisition /	-
		Other
$2.35	$1.81	EPS($)-Diluted GAAP	$0.76
60%	(23%)	% Growth	-

* Excludes Restructuring Charges (Net of Recoveries) and / or Integration / Acquisition Costs, and Tradename Write-Offs

Diluted Earnings per Share Adjusted to Exclude Restructuring Charges (Net of Recoveries) and / or Integration / Acquisition Costs and TradenameWrite-Offs Net of Tax
Growth % Measured vs. FY'19 Qtr. 1

STRONG BALANCE SHEET ($M)

	July 31,
	2019
Cash & Marketable Securities	$567
Other Current Assets
542
Total Current Assets
$1,109
Current Liabilities
412
Working Capital
$697
GW & Intangibles
658
Other Assets/(Liabilities)	(91)
Shareholders' Equity
$1,264
Tangible Equity
$606

Approximately $363M or $6.52/share "investable"

CAPITAL ALLOCATION FRAMEWORK

INVESTABLE

(EXCESS CASH)

EQUITY CAPITAL MGMT			GROWTH OPPORTUNITIES

SHARE BUYBACK	DIVIDENDS	ACQUIRED	IP INVESTMENTS	ORGANIC GROWTH
GROWTH

NEAR-TERM PRIORITIES

CASH & MARKETABLE SECURITIES & "INVESTABLE" CASH* ($M)

$767

$567

$500 $382

$296$363

$385

$204$204

FY19 Q1

FY19 Q4

FY20 Q1

"INVESTABLE" CASH* ($M)

CASH & MARKETABLE SECURITIES RESERVED FOR DEFERRED COMPENSATION & ACCRUED BONUSES ($M)

* Cash and Marketable Securities Net of Cash and Marketable Securities Reserved for Deferred Compensation Arrangements and for Accrued Bonuses

SIGNIFICANT RETURN OF VALUE

TO SHAREHOLDERS

SHARE BUYBACKS

COMPLETED TO DATE

REMAINING AUTHORIZATION

Total of $108M in share repurchases from FY'18 to *YTD FY'20

$33.1M	$37.4M	$37.2M	$213M

FY'18	FY'19	FY' 20
		*YTD

Share repurchases combined with our long-term strategies can drive significant value creation

DIVIDENDS

$0.40	~$25M
per share	per year
*FY'20 YTD September 4, 2019
	© 2019 Korn Ferry. All rights reserved 19

APPENDIX:

Reconciliations of Non-GAAP Financial Measures to U.S. GAAP Financial Measures

Earnings Conference Call September 5, 2019

KORN FERRY

Reconciliation of Operating Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY'19 Q1; FY'19 Q4; FY'20 Q1

			FY'19			FY'19		FY'20
			Qtr. 1				Qtr. 4			Qtr. 1
	Net (Loss) Income Attributable to Korn / Ferry	($38.6)			$50.3		$43.0
	Net (Loss) Incm. Attrib. to Non-Controlling Int.	-			0.4		0.7
	Net Income
		($38.6)				$50.7			$43.7
	Income Tax Provision	(16.1)			15.3		14.5
	Income (Loss) Before Provision for Income
	($54.7)			$66.0		$58.1
	Taxes (Benefit)

	Other (Income) Loss - Net	(4.5)			(7.8)		(1.8)
	Interest Expense	4.1			4.2		4.1

	Operating Income		($55.1)				$62.3			$60.3
	Depreciation & Amortization	11.7			12.0		12.8
	Other Income / (Loss) , Net	4.5			7.8		1.8

	EBITDA		($38.9)				$82.2			$74.9
(1)	Integration / Acquisition Costs	3.1			-		-
(2)	Tradename Write-Offs	106.6			-		-

	Adjusted EBITDA		$70.8				$82.2			$74.9
	Operating Margin	(11.8%)			12.7%		12.5%
	Depreciation & Amortization	2.5%			2.4%		2.6%
	Other Income / (Loss) , Net	1.0%			1.6%		0.4%

	EBITDA Margin		(8.3%)				16.7%			15.5%
(1)	Integration / Acquisition Costs	0.6%			-		-
(2)	Tradename Write-Offs	22.9%			-		-

	Adjusted EBITDA Margin		15.2%			16.7%			15.5%

Costs associated with completing a previous acquisition, such as legal & professional fees, retention awards and otheron-going integration costs to combine the companies.
The Co. is implementing a plan to go to market under a single, master brand architecture to simplify

the Co's organizational structure by eliminating and / or consolidating certain legal entities and implementing a rebranding of the Co. to offer the Co.'s current products & services using the

"Korn Ferry" name, branding and trademarks. As a result of this the Co. was required under GAAP to record one-time,non-cash tradename write-offs.

KORN FERRY

Reconciliation of Net Income & EPS (GAAP) to Adjusted Net Income & Adjusted EPS (Non-GAAP) ($M) FY'19 Q1; FY'19 Q4; FY'20 Q1

					FY'19			FY'19			FY'20
					Qtr. 1				Qtr. 4			Qtr. 1
	Net (Loss) Income Attributable to Korn / Ferry	($38.6)		$50.3		$43.0
(1)	Integration / Acquisition Costs	3.1		-		-
(2)	Tradename Write-Offs	106.6		-		-
(3)	Tax Effect of Adjustment Items	(26.9)		(0.6)		-

	Adjusted Net Income Attributable to K/F		$44.2				$49.7			$43.0
	Diluted Earnings per Common Sh.	($0.70)		$0.89		$0.76
(1)	Integration / Acquisition Costs	0.06		-		-
(2)	Tradename Write-Offs	1.90		-		-
(3)	Tax Effect of Adjustment Items	(0.48)		(0.01)		-

	Adjusted Diluted Earnings per Sh.		$0.78			$0.88		$0.76

Costs associated with completing a previous acquisition, such as legal & professional fees, retention awards and otheron-going integration costs to combine the companies.
The Co. is implementing a plan to go to market under a single, master brand architecture to simplify

the Co's organizational structure by eliminating and / or consolidating certain legal entities and implementing a rebranding of the Co. to offer the Co.'s current products & services using the

"Korn Ferry" name, branding and trademarks. As a result of this the Co. was required under GAAP to record one-time,non-cash tradename write-offs.

(3) Tax effect on integration / acquisition costs & tradename write-offs.

KORN FERRY

Reconciliation of Net Income & Operating Income (GAAP) to EBITDA & Adjusted EBITDA (Non-GAAP) ($M) FY'19 Q1; FY'19 Q4; FY'20 Q1

				FY'19 Q1									FY'19 Q4									FY'20 Q1
		Exec.				RPO &						Exec.				RPO &						Exec.		RPO &
		Search		Advisory		Prof. Search		Corp.		K/F		Search		Advisory		Prof. Search		Corp.		K/F		Search	Advisory	Prof. Search	Corp.	K/F
	Fee Revenue	$192.9	$195.4	$77.3	-		$465.6		$190.9	$207.1	$92.8	-		$490.8		$193.2	$195.5	$95.8	-		$484.5

	Net Income Attributable	-	-	-	-		(38.6)		-	-	-	-		50.3		-	-	-	-		43.0
	to Korn / Ferry
	Net Income Attributable to	-	-	-	-		-		-	-	-	-		0.4		-	-	-	-		0.7
	Noncontrolling Interest

	Oth. (Incm.) / Loss- Net	-	-	-	-		(4.5)		-	-	-	-		(7.8)		-	-	-	-		(1.8)
	Interest Exps. - Net	-	-	-	-		4.1		-	-	-	-		4.2		-	-	-	-		4.1
	Income Tax (Benefit) / Exps.	-	-	-	-		(16.1)		-	-	-	-		15.3		-	-	-	-		14.5

	Oper. Incm. / (Loss)	$40.9	($83.1)	$11.6	($24.6)		($55.1)		$42.0	$30.0	$14.5	($24.3)		$62.3		$45.6	$25.8	$15.0	($26.1)		$60.3
	Margin (%)	21.2%	(42.5%)	15.1%	-		(11.8%)		22.0%	14.5%	15.7%	-		12.7%		23.6%	13.2%	15.7%	-		12.5%
	Deprec. & Amortiz.	1.8	7.4	0.8	1.7		11.7		1.8	7.4	0.9	1.9		12.0		2.0	8.1	1.0	1.7		12.8
	Oth. Incm. / (Loss) - Net	4.0	0.6	0.1	(0.2)		4.5		5.7	1.6	0.2	0.4		7.8		1.2	0.7	0.1	(0.2)		1.8
	Equity in Earnings	0.0	-	-	-		-		0.1	-	-	-		0.1		-	-	-	-		-
	of Uncons. Sub.


	EBITDA	$46.8		($75.1)		$12.5		($23.1)		($38.9)		$49.7		$38.9		$15.6		($22.0)		$82.2		$48.9	$34.6	$16.1	($24.6)	$74.9
	Margin (%)	24.2%		(38.4%)	16.2%	-		(8.3%)		26.0%	18.8%	16.9%	-		16.7%		25.3%	17.7%	16.8%	-		15.5%
(1)Integ. / Acq. Costs	-	3.0	-	0.1		3.1		-	-	-	-		-		-	-	-	-		-

	Adjusted EBITDA	$46.8		$34.5		$12.5		($23.0)		$70.8		$49.7		$38.9		$15.6		($22.0)		$82.2		$48.9	$34.6	$16.1	($24.6)	$74.9
	Margin (%)	24.2%		17.7%	16.2%	-		15.2%		26.0%	18.8%	16.9%	-		16.7%		25.3%	17.7%	16.8%	-		15.5%

Costs associated with completing a previous acquisition, such as legal & professional fees, retention awards and otheron-going integration costs to combine the companies.

KORN FERRY

Reconciliation of Cash & Marketable Securities Balance to "Investable Cash" Balance ($M) FY'19 Q1; FY'19 Q4; FY'20 Q1

			FY'19			FY'19				FY'20
			Qtr. 1				Qtr. 4				Qtr. 1
Cash	$365.7		$626.4		$424.6
Marketable Securities	134.1		140.8		142.7

Cash & Marketable Securities		$499.8			$767.1				$567.3
ECAP & Bonus Liability	(204.3)		(385.1)		(204.7)

Investable Cash		$295.5		$382.1				$362.6

KORN FERRY

Reconciliation of Operating Income (GAAP) to Adjusted EBITDA (Non-GAAP) ($M) FY'18; FY'19

											FY'18	FY'19
											Total Yr.		Total Yr.
		Net (Loss) Income Attributable to Korn / Ferry	$133.8				$102.7
		Net (Loss) Incm. Attrib. to Non-Controlling Int.	2.1				2.1
		Net Income
			$135.9					$104.8
		Income Tax Provision	70.1				29.5
		Equity in Earnings of Unconsolidated Subs.	(0.3)				(0.3)
		Income (Loss) Before Provision for Income
		$205.7				$134.0
		Taxes (Benefit)

		Other (Income) Loss - Net	(11.1)				(10.1)
		Interest Expense	13.8				16.9

		Operating Income		$208.4					$140.8
		Depreciation & Amortization	48.6				46.5
		Other Income / (Loss) , Net	11.1				10.1

		EBITDA		$268.5					$197.7
(1)		Integration / Acquisition Costs	9.4				6.7
(2)		Tradename Write-Offs	-				106.6

		Adjusted EBITDA		$278.0					$311.0
		Operating Margin	11.8%				7.3%
		Depreciation & Amortization	2.8%				2.4%
		Other Income / (Loss) , Net	0.6%				0.6%

		EBITDA Margin			15.2%					10.3%
(1)		Integration / Acquisition Costs	0.5%				0.4%
(2)		Tradename Write-Offs	-				5.4%

		Adjusted EBITDA Margin			15.7%				16.1%

(1) Costs associated with completing a previous acquisition, such as legal & professional fees, retention
awards and other on-going integration costs to combine the companies.
(2) The Co. is implementing a plan to go to market under a single, master brand architecture to simplify
	the Co's organizational structure by eliminating and / or consolidating certain legal entities and
implementing a rebranding of the Co. to offer the Co.'s current products & services using the
"Korn Ferry" name, branding and trademarks. As a result of this the Co. was required under GAAP to	© 2019 Korn Ferry. All rights reserved	25
record one-time,non-cash tradename write-offs.

KORN FERRY

Reconciliation of Net Income & EPS (GAAP) to Adjusted Net Income & Adjusted EPS (Non-GAAP) ($M) FY'18; FY'19

				FY'18		FY'19
				Total Yr.		Total Yr.
	Net (Loss) Income Attributable to Korn / Ferry	$133.8	$102.7
	Restructuring Chgs. / (Recoveries) - Net	0.1	-
(1)	Integration / Acquisition Costs	9.4	6.7
(2)	Tradename Write-Offs	-	106.6
(3)	Tax Effect of Adjustment Items	(2.3)	(28.1)

	Adjusted Net Income Attributable to K/F		$154.6	$187.9
	Diluted Earnings per Common Sh.	$2.35	$1.81
(1)	Integration / Acquisition Costs	0.17	0.12
(2)	Tradename Write-Offs	-	1.88
(3)	Tax Effect of Adjustment Items	(0.04)	(0.50)

	Adjusted Diluted Earnings per Sh.		$2.72		$3.31

Costs associated with completing a previous acquisition, such as legal & professional fees, retention awards and otheron-going integration costs to combine the companies.
The Co. is implementing a plan to go to market under a single, master brand architecture to simplify

the Co's organizational structure by eliminating and / or consolidating certain legal entities and implementing a rebranding of the Co. to offer the Co.'s current products & services using the

"Korn Ferry" name, branding and trademarks. As a result of this the Co. was required under GAAP to record one-time,non-cash tradename write-offs.

(3) Tax effect on integration / acquisition costs & tradename write-offs.

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Korn Ferry International published this content on 05 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 September 2019 20:26:03 UTC

Real-time Estimate Cboe BZX Other stock markets 03:23:49 2024-04-26 pm EDT			5-day change	1st Jan Change
61.05 ^USD	+0.68%		-0.23%	+3.03%

Mar. 14	Transcript : Korn Ferry Presents at BofA Securities Information and Business Services Conference, Mar-14-2024 09:20 AM
Mar. 11	Korn Ferry Insider Sold Shares Worth $658,000, According to a Recent SEC Filing	MT

Transcript : Korn Ferry Presents at BofA Securities Information and Business Services Conference, Mar-14-2024 09:20 AM	Mar. 14
Korn Ferry Insider Sold Shares Worth $658,000, According to a Recent SEC Filing	Mar. 11	MT
Baird Adjusts Price Target on Korn Ferry to $72 From $70, Maintains Outperform Rating	Mar. 08	MT
UBS Adjusts Korn Ferry Price Target to $66 From $63, Maintains Neutral Rating	Mar. 07	MT
Baird Adjusts Price Target on Korn Ferry to $70 From $62, Maintains Outperform Rating	Mar. 07	MT
Transcript : Korn Ferry, Q3 2024 Earnings Call, Mar 06, 2024	Mar. 06
Exchange-Traded Funds, Equity Futures Higher Pre-Bell Ahead of Powell Testimony	Mar. 06	MT
Korn Ferry's Fiscal Q3 Adjusted Earnings Increase, Revenue Slips	Mar. 06	MT
Tranche Update on Korn Ferry's Equity Buyback Plan announced on November 5, 2007.	Mar. 06	CI
(KFY) KORN FERRY Sees Q4 EPS Range $1.09 - $1.17	Mar. 06	MT
Earnings Flash (KFY) KORN FERRY Posts Q3 Revenue $676.9M, vs. Street Est of $657.9M	Mar. 06	MT
Earnings Flash (KFY) KORN FERRY Posts Q3 EPS $1.07, vs. Street Est of $0.99	Mar. 06	MT
Korn Ferry Reports Earnings Results for the Third Quarter and Nine Months Ended January 31, 2024	Mar. 06	CI
Korn Ferry Provides Earnings Guidance for the Fourth Quarter of Fiscal 2024	Mar. 06	CI
North American Morning Briefing : Stock Futures -2-	Mar. 06	DJ
Truist Securities Adjusts Korn Ferry Price Target to $74 From $64, Maintains Buy Rating	Mar. 04	MT
William Blair Upgrades Korn Ferry to Outperform From Market Perform	Feb. 29	MT
UBS Adjusts Korn Ferry Price Target to $63 From $55, Maintains Neutral Rating	Feb. 28	MT
Arafura Rare Earths Appoints Managing Director/CEO	Feb. 04	MT
Merit Medical Systems Readies CEO Succession Plan	Dec. 18	MT
Transcript : Korn Ferry, Q2 2024 Earnings Call, Dec 06, 2023	Dec. 06
Korn Ferry's Fiscal Q2 Adjusted Earnings, Total Revenue Fall	Dec. 06	MT
Stock Futures Rebound Pre-Bell Ahead of International Trade Report; Asia, Europe Rise	Dec. 06	MT
(KFY) KORN FERRY Expects Q3 EPS Range $0.96 - $1.02	Dec. 06	MT
Earnings Flash (KFY) KORN FERRY Reports Q2 Revenue $712.4M, vs. Street Est of $687.2M	Dec. 06	MT

	1st Jan change	Capi.
KORN FERRY	+3.03%	3.16B
HAYS PLC	-15.66%	1.81B
PAGEGROUP PLC	-8.05%	1.75B
HEIDRICK & STRUGGLES INTERNATIONAL, INC.	+2.64%	612M

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