Korn Ferry at Bank of America Information & Business Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Emily Marzo - BofA Securities, Inc. - Analyst : For those who are new to the story, Can you tell us about Korn Ferry and what is the client value proposition you have to offer?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And what do say the value proposition you have?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : As you have built a diversified portfolio. Could you talk about the resilience of the business model and maybe for each segment conjecture here? Yeah. So what part of the strategy was to take the what is the sort of cyclical business, which is Executive Search is really tied to economic cycles and we build out the adjacent services that are more resilient, more durable. And we've done that over time. If you go back when I joined in 2012 was our first what I would call big acquisition at a time when we bought a company called PDI. And they have brought us a full assessment protocol into the equation. Hay Group was 2015, very transformative for us, and they brought the total rewards, the org strategy and a little bit of leadership development. And what we're finding right now as we go through the current environment is you look at our consulting business. You look at our digital business, they're actually growing. You look at our talent acquisition businesses, and they're moderating, although we have seen stabilization of late. So I look at the business. It's very from a revenue profile perspective, very different for it wasn't I when I joined, we were about 85% Executive Search traction into the Exec Search is probably [30%, 31%]. And what was a soft landing and macro look like first, a heightening?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And the more macro-sensitive cyclical segments, what are you looking forward to the macro for an inflection point in [nodes]?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : In the challenging labor market that we've seen, what tools does Korn Ferry have in order to protect those challenges?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And we've seen some layoff headlines. You said you've seen some stabilization. Could you talk to us about what demand looks like right now and maybe how that's changed in the last six months?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And in terms of geography or segment specific, are you seeing any is it like in the labor market when it comes to [media versus US]? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 14, 2024 / 1:20PM, KFY.N - Korn Ferry at Bank of America Information & Business Services Conference

Question: Emily Marzo - BofA Securities, Inc. - Analyst : Is there any like sector-specific like healthcare or anything that.

Question: Emily Marzo - BofA Securities, Inc. - Analyst : So you mean great, you just mean normal?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : You've talked about the business from being in the mix of unmet multi-quarter reset, I guess how different customer bases, preparing and reacting to this reset?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And over the past couple years, you've alluded to the transformation of the core solutions, the data, the insights. Can you walk us through the transformation changes?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And where do you see those that the greatest opportunity moving forward?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And your top line today at 40% higher than pre pandemic times. Going back to COVID, what are the biggest changes you've seen since COVID? And as we lap those pre-pandemic, what are the biggest --

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And perm placement has settled down from the pandemic highs. Do you think this is a new normal for perm placements? How should we be thinking about that.

Question: Emily Marzo - BofA Securities, Inc. - Analyst :

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And have you seen any signs of loosening on six months or so? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 14, 2024 / 1:20PM, KFY.N - Korn Ferry at Bank of America Information & Business Services Conference

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And let's go back to your margins. Your adjusted margins are coming back in line with the pandemic times with the different mix you mentioned on how sustainable are the current margins? And where do you see the most room for expansion moving forward?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And I guess in the near term and further midterm in the near term, what levers do you have to pull when it comes to a more challenged market?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And let's talk about some of your new wins, especially in consulting? And what trends are you seeing driving new business wins, the new higher bill rate? Like what are you seeing that's driving that [demand]?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And I guess when it comes to the refresh and walk across to your existing client base, like how is cross-selling working for your large parties in the regional groups?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And how is that integration process going? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 14, 2024 / 1:20PM, KFY.N - Korn Ferry at Bank of America Information & Business Services Conference

Question: Emily Marzo - BofA Securities, Inc. - Analyst : Is there a specific niche that Korn Ferry focuses on?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : Okay, so you're seeing synergies already taking place?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And maybe if we could talk about the digital and how digital fees, consulting and the total ecosystem? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 14, 2024 / 1:20PM, KFY.N - Korn Ferry at Bank of America Information & Business Services Conference

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And what would you say are the biggest demand drivers for the digital offering.

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And you've talked about a few acquisitions you've made. Could you talk about your capital allocation priorities when it comes to the dividend and M&A, repurchases? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 14, 2024 / 1:20PM, KFY.N - Korn Ferry at Bank of America Information & Business Services Conference

Question: Emily Marzo - BofA Securities, Inc. - Analyst : And the last minute here, what do you think is the most misunderstood part of your business?

Question: Emily Marzo - BofA Securities, Inc. - Analyst : Thank you for joining us. [It was great have you].