NASDAQ: BBSI | MARCH 2018

I N V E S TO R

P R E S E N TAT I O N

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 ongoing investigation of accounting issues by government agencies, 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 2017 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

PURPOSE FOR APPROACHING

THE MARKET

3

4

VISION: IMPROVE THE PROBABILITY

OF SMALL BUSINESS SUCCESS

Source: Bureau of Labor Statistics.

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

VO

LU

ME

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

POTENTIAL BRAND IMPACT

1,000 ~5,600 15,000 45,000+TODAY

FIELD STRUCTURE & FOOTPRINT

8

• 101 teams housed in

58 physical locations

• Decentralized

structure

• Most clients within

50-mile radius of

BBSI branch

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

SEASONED

PROFESSIONAL

TRAITS OF A BBSI PROFESSIONAL

10

ENTREPRENEURIAL

INNATELY

CURIOUS

OWNERSHIP

MENTALITY

STRONG BUSINESS

ACUMEN

HOW WE BUILD PIPELINE

11

PATH TO MUTUAL

UNDERSTANDING

REFERRAL-BASED CHANNELS

~25% YIELD

+90% CLIENT

RETENTION

HOW WE ALIGN WITH OUR CLIENTS

12

OUTCOMES

Stability

Capacity

Leverage

Profitability

Predictability

90%+ Retention

13

PROACTIVELY POSITIONED

FOR SCALE

PROFILE OF

OUR PEOPLE

PRODUCT

ORG

STRUCTURE

PIPELINE & MARKET

APPROACH

PROCESS

& SYSTEMS

FINANCE3X

MARKET OPPORTUNITY

14

BBSI

works with

approximately

5,600 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.

• Leverage net client add to

support referrals

• Expand within existing

markets – build branches

within branches

• Penetrate adjacent markets

to meet demand

CURRENT STATE

15

FUTURE STATE

16

• Leverage net client add to

support referrals

• Expand within existing

markets – build branches

within branches

• Penetrate adjacent markets

to meet demand

58 physical locations

•17 Mature = run rate of $100 million +

•15 Emerging = run rate of $30 million +

•26 Developing = run rate of $1-$30 million

BRANCH STRATIFICATION

17

$404

$537

$636

$741

$841

$920

2012 2013 2014 2015 2016 2017

ANNUAL NET REVENUE GROWTH

18

$Millions

$2,081

$2,817

$3,357

$4,016

$4,693

$5,301

~$6,042

2012 2013 2014 2015 2016 2017 2018E²

Gross Billings ($Millions)

ANNUAL GROSS BILLINGS

& PEO CLIENT GROWTH

19

1) PEO customers defined as the active number of customer Federal Employee Identification Numbers (FEINs). Please take into consideration that this figure is a broad

estimate of the Company’s actual client count. However, the Company does believe the number represents an effective proxy for the health of its business. 2017 client

count represents the Company’s estimated client count at the end of the year.

2) Guidance updated on Feb 27, 2018.

~14% expected gross

revenue growth vs.

2017²

~2,200~2,600

~3,000

~4,000

~4,900

~5,600PEOCustomers¹

$1.47$2.12

-$3.57

$3.47

$2.55$3.30

$4.45

2012 2013 2014¹ 2015 2016 2017 2018E²

ANNUAL DILUTED EPS

PERFORMANCE

20

1) The net loss per share in 2014 is primarily due to expense associated with an increase in the Company’s reserve for workers’ compensation claims liabilities of

approximately $104.2 million.

2) Guidance updated on Feb 27, 2018. Includes an estimate of ~$0.06 per diluted share in remaining costs associated with legal costs related to securities law

issues, as well as a lower effective tax rate of ~20%.

Includes ~$0.06 per

share for legal costs

and a lower effective

tax rate of ~20% vs.

2017

ORGANIC GROWTH

• New client stack

• Runoff

• Same customer sales

LEVERAGE

• Capacity utilization against infrastructure

SCALE

• Expansion

21

DRIVERS OF FUTURE GROWTH

$3

,35

7 $4,0

16

$4

,69

3 $5

,30

1

2014 2015 2016 2017

Annual GrossBillings

($Millions)

Trading Data (@ March 8, 2018)

Stock Price $83.52

52 Week High/Low $83.62/$44.52

Avg. Daily Vol. (3 mo.) 41,543

Shares Outstanding 7.3M

Institutional Holdings 82%

Insider Holdings 4%

Valuation Measures

Market Cap $610.0M

P/E (ttm) 25.1x

Dividend Payout Ratio (ttm) 31%

Financial Highlights (@ Dec. 31, 2017)

Gross Billings (ttm) $5,301M

Income from Ops. (ttm) $29.9M

Diluted EPS (ttm) $3.33

Cash¹ (mrq) $456.6M

Total Assets (mrq) $682.5M

Total Debt (mrq) $4.4M

Total Liabilities (mrq) $593.7M

Total Equity (mrq) $88.8M

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)

22

Clients ~3000 ~4000 ~4900 ~5600

NASDAQ: BBSI | MARCH 2018

INVESTOR CONTACT:

Cody Slach

Liol ios

949-574-3860

BBSI@Liol ios.com