TrueBlue : Q4 Earnings Presentation

Q4 2019 Earnings

February 2020

Forward-looking statements

This document contains forward-looking statements relating to our plans and expectations, all of which are subject to risks and uncertainties. Such statements are based on management's expectations and assumptions as of the date of this release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements including: (1) national and global economic conditions, (2) our ability to attract and retain clients, (3) our ability to attract sufficient qualified candidates and employees to meet the needs of our clients, (4) our ability to maintain profit margins, (5) new laws and regulations that could affect our operations or financial results, (6) our ability to successfully complete and integrate acquisitions,

1. our ability to successfully execute on business strategies to further digitize our business model, and (8) any reduction or change in tax credits we utilize, including the Work Opportunity Tax Credit. Other information regarding factors that could affect our results is included in our Securities Exchange Commission (SEC) filings, including the company's most recent reports on Forms10-K and 10- Q, copies of which may be obtained by visiting our website at www.trueblue.com under the Investor Relations section or the SEC's website at www.sec.gov. We assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Any other reference to future financial estimates are included for informational purposes only and subject to risk factors discussed in our most recent filings with the SEC.

In addition, we use several non-GAAP financial measures when presenting our financial results in this document. Please refer to the reconciliations between our GAAP and non-GAAP financial measures in the appendix to this presentation and on our website at www.trueblue.com under the Investor Relations section for additional information on both current and historical periods. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP, and may not be comparable to similarly titled measures of other companies. Any comparisons made herein to other periods are based on a comparison to the same period in the prior year unless otherwise stated.

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Results and strategy overview

Q4 2019

FY 2019

Managing costs in-line

with revenue

• Total revenue-9% v. outlook of -10% to -6%
• Operating expense results were better than expected
• EPSin-line with company outlook: $0.23 v. outlook of $0.18 to $0.28
• Adjusted EPS1in-line with company outlook: $0.39 v. outlook of $0.35 to $0.45
• Total revenue-5% v. flat in 2018
• Revenue trends slowed over the course of the year as clients moderated contingent labor spend
• Total SG&A-5% v. prior year
• Disciplined approach to cost management while investing for growth

Progress on digital

strategy

• 875,000 shifts were filled via JobStack in Q4 2019, down from 877,000 in Q4 2018
• Digital fill rate2of 46% in Q4 2019, up from 41% in Q4 2018
• 87% worker adoption, up from 80% in Q4 2018
• Approximately 4 million shifts filled in 2019, or a job every nine seconds
• Ended the year with 21,300 clients using JobStack, up more than 50% from just one year ago
• PeopleScout's Affinix is helping clients improve time to fill, candidate flow and candidate satisfaction

Returning capital to shareholders

• $8 million of stock repurchased in Q4 2019
• $119 million remaining under existing authorizations
• Strong balance sheet: 6% debt to capital ratio and ample liquidity
• $39 million of stock repurchased in 2019
• Over the last three years(2017-2019), $110 million of capital returned to shareholders via share repurchases

• See the appendix to this presentation and "Financial Information" in the investors section of our website at www.trueblue.com for a definition and full reconciliation ofnon-GAAP financial measures to GAAP financial results.

2Represents orders filled via JobStack v. all filled orders for Q4 2019 (calculation excludes unfilled orders).

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Financial summary

Amounts in millions, except per share data	Q4 2019	Change	FY 2019	Change
Revenue	$591	-9%	$2,369	-5%
Net Income	$8.7	-41%	$63.1	-4%
Net Income Per Diluted Share	$0.23	-38%	$1.61	-1%
Adjusted Net Income¹	$14.8	-39%	$80.3	-13%
Adj. Net Income Per Diluted Share	$0.39	-36%	$2.05	-10%
Adjusted EBITDA¹	$21.0	-36%	$110.7	-14%
Adjusted EBITDA Margin	3.5%	-150 bps	4.7%	-50 bps

Q4 2019 profitability decrease attributable to less revenue, prior year payroll tax benefits and previously disclosed headwinds.2

• See the appendix to this presentation and "Financial Information" in the investors section of our website at www.trueblue.com for a definition and full reconciliation ofnon-GAAP financial measures to GAAP financial results.

• PeopleScout headwind from one client lost after being acquired and less volume / lower margins on another large account. The first client had no order volume starting in Q2 2019 and the second client had no order volume in Q4

2019. For Q4 2019, these clients represented a -13% combined Adjusted EBITDA growth headwind.

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Gross margin and SG&A bridges

Gross Margin

26.5%

25.4%

-0.6%

-0.5%

Q4 2018

Staffing

RPO

Q4 2019

SG&A

Amounts in millions

$145	$134

-$1-$10

Q4 2018	Adjusted EBITDA	Core business	Q4 2019
	exclusions¹

• Adjusted EBITDA further excludes from EBITDA Work Opportunity Tax Creditthird-party processing fees, acquisition/integration costs and other costs. See the appendix to this presentation and "Financial Information" in the investors

section of our website at www.trueblue.com for a definition and full reconciliation of non-GAAP financial measures to GAAP financial results.	5

Q4 2019 results by segment

Amounts in millions	PeopleReady	PeopleManagement	PeopleScout
Revenue	$365	$171	$55
% Growth	-9%	-7%	-18%
Segment Profit1	$18	$3	$5
% Growth	-19%	-45%	-54%
% Margin	4.9%	1.6%	9.8%
Change	-60 bps	-110 bps	-770 bps
Notes:	¬Revenue was -9% v. -4% last	¬Revenue was -7% v. -12% last	¬Revenue was -18% v. -9% last
quarter	quarter; improvement due to	quarter
	¬Declines were broad-based	run-off of previously disclosed	¬Decline in revenue and
	across multiple geographies	revenue headwinds2	profitability primarily from
	and industries	¬Profitability impacted by	previously disclosed
	¬Revenue -15% in Dec., or -7%	shorter peak holiday season	headwinds3and softness in
	after adjustment for the	¬The dollar volume of new	our UK business due to
	Thanksgiving holiday shift	business wins remains	uncertainty associated with the
		encouraging (up 21% for FY	Brexit vote
		2019)

• We evaluate performance based on segment revenue and segment profit. Segment profit includes revenue, related cost of services, and ongoing operating expenses directly attributable to the reportable segment. Segment profit excludes goodwill and intangible impairment charges, depreciation and amortization expense, unallocated corporate general and administrative expense, interest, other income and expense, income taxes, and other adjustments not considered to be ongoing.

• PeopleManagement revenue headwinds from loss of Amazon Canadian business and volume / price reductions at another retail client. Total revenue growth headwind was negligible in Q4 2019 v.-5% in Q3 2019.

• PeopleScout headwind from one client lost after being acquired and less volume / lower margins on another large account. The first client had no order volume starting in Q2 2019 and the second client had no order volume in Q4 2019(-11% combined revenue growth headwind in Q4 2019 v. -9% in Q3 2019). Associated segment profit headwind of approximately $4M (-37% combined segment profit growth headwind in Q4 2019).

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2019 headwind information

	Amounts in millions		nPeopleScout Clients¹
			nRetail Client (PeopleManagement)
	$26		nAmazon (PeopleManagement)
Headwinds	5		nPlaneTechs (PeopleManagement)	$64
		$16		18
	$15
12
3	6		15
Revenue
	6	3	$8	24
8	6	6	8	8
	Q1-19	Q2-19	Q3-19	Q4-19	FY 2019
Headwinds			$6
$5				$18
1	$4		$4
	4
			12
Profit
2	2
			4
Segment		1	1
		4
2
1	1		3
Q1-19	Q2-19	Q3-19	Q4-19	FY 2019

Note: Figures may not sum to consolidated totals due to rounding. Please see the outlook section of our Q4 2018 earnings presentation for additional background information.

1PeopleScout headwind from one client lost after being acquired and less volume / lower margins on another large account. The first client had no order volume starting in Q2 2019 and the second client had no7order volume in Q4 2019.

Leading our business into a digital future

JobStackTM

Industry-leading mobile app that connects our		Industry-leading platform for sourcing, screening
associates with jobs and simplifies client ordering		and delivering a permanent workforce

Year	Achievements	Digital Fills1	Client Users
2017	Successful branch	22%	1,600
roll-out
2018	Launch of client	41%	13,100
application
2019	Drive revenue
growth with heavy	46%	21,300
	client users
2020	Drive candidate	55%	28,000
Goal	flow

Before		After
¬30% applicant		¬80%+ applicant
conversion rate2		conversion rate
¬Not mobile enabled		¬50% of candidates
	apply with mobile
¬Limited passive		¬40 candidates
sourcing		sourced per job
¬>35 days to fill		¬25 days to fill

http://www.peopleready.com/jobstack/

https://www.peoplescout.com/affinix/

• Represents orders filled via JobStack v. all filled orders for Q4 of the given year (calculation excludes unfilled orders).

Note: Figures represent average initial improvements experienced across a small portion of our client base that has been fully implemented on Affinix

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and tracks relevant statistics.

2Applicant conversion rate represents the number of completed applications over the number of applications initiated.

Strong balance sheet and return of capital

Total Debt

Debt to Total Capital1

Amounts in millions

Net Debt

Cash

$138	$119
$35
$29	$80
	$37
$103	$90	$47
		$33	$38
2016	2017	2018	2019
	Liquidity

21%	18%
	12%
		6%
2016	2017	2018	2019

Share Repurchase % of Free Cash Flow2

Amounts in millions

	Borrowing Availability	Cash
		$260	$295
		$38
		$47
$171
$146
$35		$257
$29	$213
$136
$117
2016	2017	2018	2019

	47%		59%
	32%
2%
2016	2017	2018	2019

Note: Figures may not sum to consolidated totals due to rounding. Balances as of fiscal period end.
1	Calculated as total debt divided by the sum of total debt plus shareholders' equity.
2	Free cash flow calculated as net cash provided by operating activities less capital expenditures. See the appendix to this presentation and "Financial Information" in the Investors section of our website at	9

www.trueblue.com for a definition and full reconciliation of non-GAAP financial measures to GAAP financial results.

Outlook

Q1 outlook

		Amounts in millions, except per share data
	Outlook	Notes
Revenue: Total TrueBlue¹	$503 to $528	•Incremental improvement v. Q4 2019 based on recent trends
-9% to -4% growth
Revenue: PeopleReady	$303 to $314	•Incremental improvement v. Q4 2019 based on recent trends
-7% to -4% growth
Revenue: PeopleManagement	$149 to $158	•Incremental improvement v. Q4 2019 based on new clients wins ramping on
-5% to 0% growth
Revenue: PeopleScout	$50 to $55	•See detail on client headwinds below ($5M revenue impact, or 8% growth impact)
-26% to -18% growth
Net loss per basic share	$0.07 to $0.00	•Assumes an effective income tax rate of 12%
		•Assumes basic weighted average shares outstanding of 37.8M and diluted
Adjusted net income per diluted share	$0.04 to $0.11
weighted average shares outstanding of 38.4M

Select 2020 outlook information

	Q1	Q2	Q3	Q4
					•2020 capex in-line with historical run rate with the exception of $10M in
Capital Expenditures	$5	$7	$12	$13	capex related to our Chicago headquarters. The lessor will subsidize the
majority of the build-out, with offsetting cash flow expected in 2021. No
					material change to depreciation anticipated.

PeopleScout Client Headwinds	Q1	Q2	Q3	Q4
Revenue Headwind	-$5	-$4	-$2	$0	•As previously disclosed, PeopleScout headwind from one client lost
					after being acquired and less volume / lower margins on another large
Segment Profit Headwind	-$3	-$2	-$1	$0	account. The first client had no order volume starting in Q2 2019 and
the second client had no order volume in Q4 2019.

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• Figures may not sum to consolidated totals due to rounding.

Appendix

NON-GAAP FINANCIAL MEASURES AND NON-GAAP RECONCILIATIONS

In addition to financial measures presented in accordance with U.S. GAAP, we monitor certain non-GAAP key financial measures. The presentation of thesenon-GAAPfinancial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP,and may not be comparable to similarly titled measures of other companies.

Non-GAAP	Definition	Purpose of Adjusted Measures
Measure
EBITDA and	EBITDA excludes from net income:	- Enhances comparability on a consistent basis and provides
Adjusted EBITDA	- interest and other income (expense), net,	investors with useful insight into the underlying trends of the
	- income taxes, and	business.
	- depreciation and amortization.	- Used by management to assess performance and
	Adjusted EBITDA, further excludes:
	effectiveness of our business strategies.
	- Work Opportunity Tax Credit third-party processing fees,	- Provides a measure, among others, used in the
	- acquisition/integration costs
	- gain on deferred compensation assets, and	determination of incentive compensation for management.
	- other adjustments.
Adjusted net	Net income and net income per diluted share, excluding:	- Enhances comparability on a consistent basis and provides
income and	- amortization of intangibles of acquired businesses,	investors with useful insight into the underlying trends of the
Adjusted net	- acquisition/integration costs,	business.
income, per diluted	- gain on divestiture,	- Used by management to assess performance and
share	- other adjustments,
	- tax effect of each adjustment to U.S. GAAP net income, and	effectiveness of our business strategies.
	- adjust income taxes to the expected effective tax rate.
Free cash flow	Net cash provided by operating activities, minus cash purchases	- Used by management to assess cash flows.
	for property and equipment.

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1.RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME AND ADJUSTED NET INCOME, PER DILUTED SHARE (Unaudited)

		Q4 2019			Q4 2018
	13 Weeks Ended		13 Weeks Ended
(in thousands, except for per share data)		Dec 29, 2019			Dec 30, 2018
Net income (loss)	$	8,715	$	14,887
Amortization of intangible assets of acquired businesses (2)		4,003			5,162
Acquisition/integration costs (3)		(50)			989
Other adjustments (4)		3,913			4,333
Tax effect of adjustments to net income (5)		(1,102)			(1,468)
Adjustment of income taxes to normalized effective rate (6)		(671)			357
Adjusted net income	$	14,808	$	24,260
*Totals may not sum due to rounding
Adjusted net income, per diluted share	$	0.39	$	0.61
Basic weighted average shares outstanding		37,843			39,528
Diluted weighted average shares outstanding		38,348			39,926
						2019
			52 Weeks Ended
(in thousands, except for per share data)			Dec 29, 2019
Net income		$			63,073
Gain on divestiture (1)						-
Amortization of intangible assets of acquired businesses (2)						17,899
Acquisition/integration costs (3)						1,562
Other adjustments (4)						3,915
Tax effect of adjustments to net income (5)						(3,273)
Adjustment of income taxes to normalized effective rate (6)						(2,835)
Adjusted net income		$			80,341

Q1 2020 Outlook*

13 Weeks Ended

Mar 29, 2020

$	(2,500) -	$	100
	4,000
		-
		600
		(600)
		-
$	1,500	-	$	4,000
$	0.04	-	$	0.11
	37,800
	38,400
		2018
	52 Weeks Ended
	Dec 30, 2018
$				65,754
				(718)
				20,750
				2,672
				10,317
				(5,074)
				(1,843)
$				91,858

Adjusted net income, per diluted share	$	2.05	$	2.28
Diluted weighted average shares outstanding		39,179		40,275

See the last slide of the appendix for footnotes.

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2. RECONCILIATION OF U.S. GAAP NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (Unaudited)

		Q4 2019			Q4 2018
	13 Weeks Ended		13 Weeks Ended
(in thousands)		Dec 29, 2019			Dec 30, 2018
Net income (loss)	$	8,715	$	14,887
Income tax expense		638			2,839
Interest and other (income) expense, net		(2,014)			(848)
Depreciation and amortization		9,021			10,272
EBITDA		16,360			27,150
Work Opportunity Tax Credit processing fees (7)		240			285
Acquisition/integration costs (3)		(50)			989
Gain on deferred compensation assets (8)		495			-
Other adjustments (4)		3,913			4,333
Adjusted EBITDA	$	20,958		$	32,757
* Totals may not sum due to rounding
						2019
			52 Weeks Ended
(in thousands)			Dec 29, 2019
Net income		$			63,073
Income tax expense						6,971
Interest and other (income) expense, net						(3,865)
Depreciation and amortization						37,549
EBITDA						103,728
Work Opportunity Tax Credit processing fees (7)						960
Acquisition/integration costs (3)						1,562
Gain on deferred compensation assets (8)						495
Other adjustments (4)						3,915
Adjusted EBITDA		$			110,660

Q1 2020 Outlook*

13 Weeks Ended

Mar 29, 2020

$	(2,500)	-	$	100
	(300)	-		-
	(900)
	9,000
	5,200	-		8,200
		200
		-
		-
		600
$	6,000	-	$	9,000

2018

52 Weeks Ended

Dec 30, 2018

$65,754 9,909 (1,744) 41,049

114,968

985

2,672

-

10,317

$128,942

See the last slide of the appendix for footnotes.

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3.RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOWS (Unaudited)

		2019			2018			2017			2016
	52 Weeks Ended	52 Weeks Ended		52 Weeks Ended		53 Weeks Ended
(in thousands)		Dec 29, 2019			Dec 30, 2018			Dec 31, 2017			Jan 1, 2017
Net cash provided by operating activities	$	94,542		$	125,692	$	100,134	$	260,703
Capital expenditures		(28,119)			(17,054)			(21,958)			(29,042)
Free cash flows	$	66,423		$	108,638		$	78,176		$	231,661

Footnotes:

1. Gain on the divestiture of our PlaneTechs business soldmid-March 2018.
2. Amortization of intangible assets of acquired businesses.
3. Acquisition/integration costs for the acquisition of TMP Holding LTD completed on June 12, 2018.
4. Other adjustments for the 13 weeks and 52 weeks ended December 29, 2019 primarily include implementation costs forcloud-based systems of $0.6 million and $3.2 million, respectively, workforce reduction costs primarily associated with employee reductions in the PeopleReady business of $2.9 million and $3.3 million, respectively and amortization of software as a service assets of $0.5 million and $1.6 million, respectively, which is reported in selling, general and administrative expense. These other cost adjustments for the 52 weeks ended December 29, 2019 were slightly offset by $3.9 million of workers' compensation benefit related to additional insurance coverage associated with former workers' compensation carriers that are in liquidation. Other adjustments for the 13 weeks and 52 weeks ended December 30, 2018 include implementation costs for cloud-based systems of $2.2 million and $6.7 million, respectively, and accelerated vesting of stock associated with the CEO transition of $2.1 million and $3.6 million, respectively. Other adjustments for the 13 weeks ended March 29, 2020 include implementation costs for cloud-based systems of $0.3 million and amortization of software as a service assets of $0.3 million.
5. Total tax effect of each of the adjustments to U.S. GAAP net income using the expected ongoing rate of 12 percent for 2020 and 14 percent for all other periods presented.
6. Adjustment of the effective income tax rate to the expected ongoing rate of 12 percent for 2020 and 14 percent for all other periods presented.
7. Thesethird-party processing fees are associated with generating the Work Opportunity Tax Credits, which are designed to encourage employers to hire workers from certain targeted groups with higher than average unemployment rates.
8. Gain realized on sale of deferred compensation mutual funds to purchase corporate owned life insurance policies during the 13 weeks ended December 29, 2019.

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