WELCOME TO THE NEW SALLY.NEW LOOK. NEW EXPERIENCE.

Fiscal 2020 Second Quarter Earnings Call

May 6, 2020

Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc.

Forward-Looking Statements and Non-GAAP Financial Measures

Statements in this presentation which are not purely historical facts or which depend upon future events may be forward-lookingstatements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Actof 1934, as amended. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can beidentified by the use of forward-looking terminology such as “believes,” “projects,” “expects,” “can,” “may,” “estimates,” “should,” “plans,”“targets,” “intends,” “could,” “will,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or othervariations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and futureplans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or currentmatters.

Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they weremade. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially fromthe events or results described in the forward-looking statements, including, but not limited to, the risks and uncertainties related toCOVID-19 and those described in our filings with the Securities and Exchange Commission, including our most recent Annual Report onForm 10-K for the year ended September 30, 2019, and our Current Report on Form 8-K dated as of April, 20, 2020, each as filed with theSecurities and Exchange Commission. Consequently, all forward-looking statements in this presentation are qualified by the factors, risksand uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements.

This presentation includes certain financial measures that have not been calculated in accordance with accounting principles generallyaccepted in the United States, or GAAP, and are therefore referred to as non-GAAP financial measures. These non-GAAP financialmeasures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overallunderstanding of our financial performance and should not be considered a substitute for, or superior to, the financial informationprepared and presented in accordance with GAAP. A reconciliation of GAAP to non-GAAP measures is provided in the appendix of thispresentation.

Significant Progress Made on Transformation Plan

Launched National Re-Brand Campaign at Sally Beauty

Added New Leaders to our Digital Product and E-commerce Platforms

Fixed the First Quarter Technology Issues

Launched sallybeauty.ca and Ship-From-Store Capabilities in Canada

Launched Same-Day Delivery in BSG in One Territory

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Prior to March 12 (Pre-COVID) Q2 with COVID Impact

4.7%

4.5%

4.8%

(7.1%)

(7.4%)

(7.0%)

Q2 FY20 Same Store Sales Performance

Sally Beauty Holdings

Sally Beauty Supply

Beauty Systems Group

WELCOME TO THE NEW SALLY.NEW LOOK. NEW EXPERIENCE.

Sally Beauty Holdings, Inc.

52%

12%

118%

28%

10%

56%

Accelerating E-commerce Performance

MarchQ2

353%

129%

872%

April

*U.S. & Canada Only

Sally Beauty Holdings

Sally Beauty Supply

Beauty Systems Group

SBH U.S. & Canada Store Status

Over 50% of stores are open to public

Over 50% of stores are ship-from-store/same-day delivery/curbside but not open to public

Majority of state/province is hard closed

What Makes Sally Beauty Holdings Different Post-COVID

High Demand Categories in Hair Color/Hair Care/PPE

Natural Hedge Between Sally Beauty and Beauty Systems Group

We Do Not Face the Overhang of Mall Stores or Fear of Traffic (Mall Crowds)

Building Strong Digital Platforms – Ship-From-Store & Same-Day Delivery

Restart of Store Networks with Emphasis on Safety

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Sally Beauty Holdings, Inc.

Q2 Financial Recap

SSS(7.1%)

Gross Margin49.3%

SG&A%44.0%

Adjusted EPS

$0.23 (1)

Compared to PY: Prior to Mar 12Up 4.7%

Down 20 bps Up 580 bps Decrease of 54.9%

Sally Beauty Holdings, Inc. (1) Adjusted EPS is a non-GAAP measure. See Appendix for a reconciliation of this non-GAAP measure.

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Sally Beauty Holdings, Inc.

Liquidity Actions

Negotiated with Landlords for rent abatements

Partnered with merchandise vendors to lower inventory and extend payment terms

Reduced capital spend except for E-commerce related capital investments

Furloughed approximately 70% of our field staff, 60% of our Corporate staff and reduced executive compensation

Reduced marketing, non-personnel field and shared services back office spend

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Borrowed $340 million on revolving line of credit to hold as cash on balance sheet

Increased revolving line of credit capacity from $500 million to $620 million

Sold $300 million of senior secured notes

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Expense Management Cash Management/Capital Markets

WELCOME TO THE NEW SALLY.NEW LOOK. NEW EXPERIENCE.

Sally Beauty Holdings, Inc.

Appendix

Sally Beauty Holdings, Inc.

Supplemental Schedule 2

As Reported(GAAP) Restructuring (1)

COVID-19 Expenses, net (2)

As Adjusted (Non-GAAP)

Selling, general and administrative expenses 383,299$ -$ (14,697)$ 368,602$ SG&A expenses, as a percentage of sales 44.0% 42.3%Operating earnings 43,265 3,193 14,697 61,155 Operating margin 5.0% 7.0%Earnings before provision for income taxes 21,621 3,193 14,697 39,511 Provision for income taxes (3) 8,253 853 3,438 12,544 Net earnings 13,368$ 2,340$ 11,259$ 26,967$

Earnings per share:Basic 0.12$ 0.02$ 0.10$ 0.23$ Diluted 0.12$ 0.02$ 0.10$ 0.23$

As Reported(GAAP) Restructuring (1)

As Adjusted (Non-GAAP)

Selling, general and administrative expenses 361,626$ -$ 361,626$ SG&A expenses, as a percentage of sales 38.2% 38.2%Operating earnings 112,512 (5,814) 106,698

Operating margin 11.9% 11.3%Earnings before provision for income taxes 88,691 (5,814) 82,877 Provision for income taxes (3) 22,966 (1,494) 21,472 Net earnings 65,725$ (4,320)$ 61,405$

Earnings per share:Basic 0.55$ (0.04)$ 0.51$ Diluted 0.54$ (0.04)$ 0.51$

Three Months Ended March 31, 2020

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIESNon-GAAP Financial Measures Reconciliations

(In thousands, except per share data)(Unaudited)

Three Months Ended March 31, 2019

(1) For the three months ended March 31, 2020, restructuring represents costs and expenses incurred primarily in connection with the Project Surge and the Transformation Plan. For the three months ended March 31, 2019, restructuring represents costs and expenses incurred in connection with the 2018 Restructuring Plan.

(3) The income tax provision associated with restructuring for the three months ended March 31, 2020 and 2019, was calculated using a 26.7% and 25.7% tax rate, respectively, since realization of a tax benefit for portions of these expenses are currently not deemed probable. The income tax provision associated with the COVID-19 expenses for the three months ended March 31, 2020, was calculated using a 23.4% tax rate.

(2) For the three months ended March 31, 2020, COVID-19 expenses primarily represents costs associated with disaster pay and furloughed employees in response to the coronavirus pandemic. These cost were partially offset by an employee retention payroll tax credit provided by the U.S. Coronavirus Aid, Relief, and Economic Security Act ("CARES Act").