As of December 2017

1

Sally Beauty Holdings, Inc.

S T R E N G T H[ IN BEAUTY ]

As of June 2018

H E A D E R

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Sally Beauty Holdings is a leading international specialty retailer and distributor of professional beauty products and supplies

Industry leading position

Annual consolidated sales of approximately $4 billion

5,170 stores located in 12 countries (1)

Long track record of growth, underpinned by resilient beauty category

Strong cash flow generation

Disciplined capital allocation, with consistent investment in the business

Proven resilience in recessionary cycles

Two distinct business segments

Diversified customer base: 60% salon professional; 40% specialty retail

Company Highlights

(1) As of June 30, 2018 2

Segments

Net Sales Gross Margin

SegmentOperatingEarnings

(1) See Addendum for a reconciliation of this non-GAAP financial measure.

Consolidated Fiscal 2017 Results

Sales 59.5% 40.5%

60.2% 39.8%

3

Open-Line Retail Exclusive / Full-Service

3,775 stores 1,395 stores 837 consultants

Professional stylists

`

Consumers:

DistributionChannel (1)

Salons

Retail Consumers $$$ High-end$ Value

Suppliers/Vendors:

Distributors:

Go To Market

Exclusive, third party professional-only brands

Third party and owned brands not available in mass retail

(1) As of June 30, 2018 4

Retail stores and E-commerce

Retail consumers ~ 70% of sales Professional stylists ~ 30% of sales

SalesSSS growthEBITEBIT margin

Segment

DistributionChannel

Customers

FY2017Financials

$2.3b-1.6%$385m16.4%

Business Segment Highlights

5

SalesSSS growthEBITEBIT margin

Segment

DistributionChannel

Customers

FY2017Financials

Stores for licensed professionalsDirect sales consultants for salons

Professional stylists (chair/suite renters)Salons (via BSG’s direct sales consultants)

$1.6b1.3%$255m16.0%

Business Segment Highlights

6

$1.6 $1.8

$2.1 $2.3

$2.6 $2.9 $3.0

$3.3 $3.5

$3.8 $4.0

$4.5 $4.8

$5.1

$5.7

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

E20

19E

2020

E

($ in

bill

ions

)

U.S. Salon Industry Product Sales(at wholesale $’s)

Growth of 1.8%

RecessionResistantIndustry

$5.3

Resilient Industry

Source: Professional Consultants & Resources, 2017 Study. Author: Cyrus Bulsara(1) Professional beauty supply channel size based upon a 2017 study of manufacturer-level sales conducted by Professional Consultants & Resources.

7

Development

Source: Forrester Data Online Retail Forecast as per Evercore ISI Equity Research

Online penetration

Sales growth

Profits

Not impacted Online is a complement to

stores

Store growth towards zero

Online moving from complement to competition

Store growth turning negative Store-based vs. online battle for

market shares

Markets settle and growth rates converge

50%

Higher in store-based retail Lower in store-based retail Gross margins deteriorate while

stores are maintained

Converging at low levels

High competition as stores restructure and online matures

Share by channel stabilizes

Competition normalizes and markets settle

Growth Shakeout Maturity

Historically Low Exposure to Digital Disruptions

8

Business Segment Review

9

Sally Beauty global footprint (1)

3,775 stores worldwide

2,868 stores in U.S. (including Puerto Rico)

907 stores in Canada, Mexico, Chile, Peru, UK, Ireland, Belgium, Netherlands, France, Germany, and Spain

Average store size 1,700 sq. ft., 90% selling space

Professional open-line business - merchandise assortment not available through mass retailers

46% of U.S./Canada sales are exclusive and owned-brand products (1)

Destination for professional quality hair care and solutions with a love it or return it guarantee

Sally Beauty U.S. Store

Sally Beauty Highlights

(1) As of June 30, 2018 10

Sally Beauty Product Mix

Hair Care

Hair Color

Skin and Nail Care

ElectricalAppliances

Brushes,Cutlery andAccessories

Other BeautyItems

We offer a diversified mix of beauty products

*Fiscal year 2017

~50% ofSales areHair careHair color

MulticulturalProducts

11

21%

26%

15%

13%

8%

8%9%

Sally International

907 Sally stores located in 11 countries

Stores located in Canada, Mexico, Chile,Peru, UK, Ireland, Belgium, France, the Netherlands, Germany, and Spain

~26% of Sally sales from international

Sales mix differs from U.S./Canada

UK/Europe

o ~80-85% professionalo ~15-20% retail

Mexico and South America almost 100% retail

Existing International Platform Store Count by Geography (1)

232

202(Belgium, France,

139

40

268

Total 907

26

(Canada)

(Mexico)

(UK / Ireland)

Germany, Spain, Netherlands)

(Chile)

(Peru)

(1) As of June 30, 2018 12

3.8%2.4% 2.4% 2.7%

1.2%2.1%

4.1%

6.3% 6.5%

-0.6%1.3% 1.7% 1.7%

-1.6%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

~ 50 bps negative impact from Hurricanes/Leap Year comparison

$1,296 $1,359 $1,419 $1,567 $1,673 $1,696

$1,835 $2,012

$2,199 $2,230 $2,309 $2,330 $2,365 $2,345

$0$400$800

$1,200$1,600$2,000$2,400$2,800

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sally Beauty Net Sales (1),(2)

Sally Beauty Same Store Sales

(1) The unfavorable impact of foreign currency exchange on net sales for the fiscal year 2017 was $30.8 million, or 1.3% of net sales(2) Salon Success net sales are included in the 2017 Sally Beauty net sales (included in Beauty Systems Group in prior years)

Sally Beauty Historical Sales

13

Beauty Systems Group Highlights

Beauty Systems Group – 1,395(1) professional-onlystores & professional distributor sales consultants

1,228 company-operated / 167 franchised stores (Armstrong McCall)

837 professional distributor sales consultants

Average store size 2,700 sq. ft.

Sells exclusively to salons and salon professionals

Professional exclusive / full-service business –includes merchandise assortment of premium brands sold through salons and not available in mass retail or Sally Beauty stores

In 2017, CosmoProf launched the mobile app for stylists

(1) As of June 30, 2018 14

Beauty Systems Group Highlights

We offer a diversified mix of beauty products not carried in Sally stores or mass retail

Hair Care

Skin and Nail Care

ElectricalAppliances

PromotionalItems

Other BeautyItems

Hair Color

~70% of Sales areHair careHair color*Fiscal year 2017

15

33%

37%

6%

8%

8%8%

Beauty Systems Group Highlights

$802 $895 $954 $945 $975 $941

$1,081 $1,257 $1,325

$1,392 $1,445 $1,505 $1,588 $1,593

$0$200$400$600$800

$1,000$1,200$1,400$1,600$1,800

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

BSG Net Sales (1),(2)

8.5%

(0.6%)

4.1%

10.1%

6.9%

1.0%

6.2% 5.5% 6.1%4.2% 3.5%

5.7% 5.5%

1.3%

(4.0%)

0.0%

4.0%

8.0%

12.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

~ 50 bps negative impact from Hurricanes/Leap Year comparison

BSG Same Store Sales Growth

(1) BSG net sales were not materially impacted by foreign currency exchange rates for fiscal year 2017 (2) Salon Success net sales are included in the 2017 Sally Beauty net sales (included in Beauty Systems Group in prior years) 16

Consolidated Financials

17

$0.44$0.52

$0.77

$1.07

$1.42$1.48

$1.53 $1.53

$1.72$1.80

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Consolidated Sales and Adj. EPS

5%YoY

Sales (1) EPS (adjusted) (2)

(1) The impact from unfavorable foreign currency exchange in the 2017 fiscal year was $30.0 million, or 0.8%(2) See Addendum for a reconciliation of this non-GAAP financial measure.

18

$2,648 $2,637

$2,916

$3,269

$3,524 $3,622 $3,754 $3,834

$3,953 $3,938

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Q3 FY18 and Fiscal YTD Results

Q3 FY18 Financial Results

19

• Reported EPS of $0.48, decrease of 2.0% Includes benefits of U.S. Tax Reform offset

by restructuring charges and expenses from previously disclosed data security incidents

• Adjusted EPS of $0.60, growth of 15.4% Includes benefits of U.S. Tax Reform

• Net sales of $996m, -0.2% vs. prior year Same store sales growth (2.0%) Favorable foreign exchange +90 bps

• Operating Free Cash Flow $79.0m, growth of 70.9% vs. prior year

• Repurchased 3.2m shares / $50.1m

(1) Excludes the $0.17 related to the net benefit of the revaluation of the deferred income tax accounts partially offset by the repatriation tax

Fiscal YTD Financial Results

• Reported EPS of $1.62, growth of 26.6% Includes benefits of U.S. Tax Reform

• Adjusted EPS of $1.65, growth of 23.1% Includes benefits of U.S. Tax reform due to

the reduced federal statutory rate but excludes the one-time net benefits in Q1(1)

• Net sales of $2,967m, +0.1% vs. prior year Same store sales growth (1.9%) Favorable foreign exchange +130 bps

• Operating Free Cash Flow $219.8m, growth of 40.6% vs. prior year

• Repurchased 9.9m shares / $164.7m

20

Steady Cash Flow Generation

SBH Free Cash Flow ($m) (1)

$228.5 $225.6$239.2

$194.3 $202.3

$254.8

2012A 2013A 2014A 2015A 2016A 2017A

39% 37% 39% 32% 32%

Cash conversion (%) (2)

(1) Free Cash Flow defined as cash flow from operations minus capital expenditures; See Addendum for reconciliation of this non-GAAP financial measure(2) Cash conversion defined as FCF/Adjusted EBITDANote: Free Cash Flow for 2015 and 2016 reflects increased capital expenditures primarily related to store openings and ongoing information technology upgrades in both business

segments, store remodels and upgrades to certain distribution centers

41%

Capital Allocation

$515

$327

$228 $209

$346

2013 2014 2015 2016 2017

Cash used per year to acquire stock(in millions)

Over past five years, $1.6 billion of capital allocated to stock repurchases

In August 2017, launched a new share repurchase program to repurchase up to $1.0 billion, at the discretion of the Board of Directors, of common stock through the end of fiscal year 2021

Going forward, capital allocation will be in the order of priority to invest in the business, pay down debt and return cash to shareholders

21

Long-term capital structure

$1,045.9

$750.0

$-

$200.0

$400.0

$600.0

$800.0

$1,000.0

$1,200.0

2018 2019 2020 2021 2022 2023 2024 2025 2026

No near-term maturities

July 2017, successfully refinanced $850m high yield debt with lower-rate term loan B

$546m floating (L+225 bps)(1)

$300m fixed (4.50%)

Targeted consolidated leverage ratio (Net Debt/EBITDA) of 2.5x to 3.0x

Ample liquidity

Strong cash flow

$500 million asset-based revolving credit facility

(1) Repriced in March 2018. Lowered interest rated spread by 25 bps.

Long-term debt maturities ($ millions)

Consolidated Debt

AMOUNT ($MM)

% OF TOTAL DEBT

TERM LOAN B (FY2024) $845.9 47.1% 5.500% SENIOR NOTES (FY2024) $200.0 11.1% 5.625% SENIOR NOTES (FY2026) $750.0 41.8% TOTAL DEBT $1,795.9 100.0%

22

Chart1

2018

2019

2020

2021

2022

2023

2024

2025

2026

Term B

$597

$1,050

1045.9

0

750

Sheet1

Term BSr. Notes 6.78%2014

2018

2019

2020

2021

2022

2023

2024$ 1,045.9

2025$ - 0

2026$ 750.0

2023

2023$ 750.0

Amount

($mm)

% of

Total Debt

Term Loan B (FY2024)

$845.9

47.1%

5.500% Senior Notes (FY2024)

$200.0

11.1%

5.625% Senior Notes (FY2026)

$750.0

41.8%

Total Debt

$1,795.9

100.0%

Long-Term Strategy

23

24

Short-Term Tactical Plan

25

SBH Highlights

Greater resilience to online disruption vis-a-vis most other retail verticals

Strong cash flow generation, despite meaningful investment in the business

Track record of strong profitable growth coupled with attractive business model and economics

Maintain appropriate capital structure

2

3

4

5

Attractive beauty retail sector underpinned by growing and resilient beauty category1

26

APPENDIX

EBITDA and EPS Reconciliation

27

Adjusted EBITDA FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17Net Earnings (GAAP) 44.5$ 77.7$ 99.1$ 143.8$ 213.7$ 233.1$ 261.2$ 246.0$ 235.1$ 222.9$ 215.1$

Interest expense, net of interest income 146.0 159.1 132.0 113.0 112.5 138.4 107.7 116.3 116.8 144.2 132.9Provision for income taxes 38.0 46.2 65.7 84.1 122.2 127.9 151.5 144.7 143.4 131.1 130.6Depreciation and amortization 42.6 48.5 47.1 51.1 59.7 64.7 72.2 79.7 89.4 99.7 112.3Share-based compensation 13.1 10.2 8.6 12.8 15.6 16.9 19.2 22.1 16.8 12.6 10.5Transaction expenses (1) 21.5 - - - - - - - - - -Sales-based service fee charged by Alberto-Culver 3.8 - - - - - - - - - -Expenses from data security incidents - - - - - - - 2.5 5.6 14.6 -Restructuring charges - - - - - - - - 5.3 - 22.7Litigation settlement and non-recurring items, net (2) - - - - (21.3) 10.2 - - - 2.6 -

Adjusted EBITDA 309.5$ 341.7$ 352.5$ 404.8$ 502.5$ 591.1$ 611.8$ 611.3$ 612.4$ 627.7$ 624.1$

Adjusted net earnings and adjusted diluted earnings per shareNet Earnings (GAAP) 44.5$ 77.7$ 99.1$ 143.8$ 213.7$ 233.1$ 261.2$ 246.0$ 235.1$ 222.9$ 215.1$

Marked-to-market adjustment for certain interest rate swaps 3.0 4.6 - (2.4) - - - - - - -Expenses associated with the spin-off from Alverto Culver 13.4 - - - - - - - - - -Loss on extinguishment of debt - - (5.3) - - 37.8 - - - 33.3 28.0Interest expense on redeemed debt - - - - - 5.1 - - - 2.1 -Amortization of deferred financing costs - - - - - 0.2 - - - - -Litigation settlement and non-recurring items, net (2) - - - - (21.3) 10.2 - - - - -Loss from securiy breach incidents - - - - - - - 2.5 5.6 14.7 -Management transition costs - - - - - - - 3.5 - 2.0 -Restructuring charges - - - - - - - - 5.3 - 22.7Other - - - - - - - - - 0.6 -Tax provision for the adjustments to net earnings (1.4) (1.7) 2.1 0.9 7.9 (19.2) - (2.3) (4.0) (20.1) (17.6)

Adjusted net earnings 59.5$ 80.6$ 95.9$ 142.3$ 200.3$ 267.2$ 261.2$ 249.7$ 241.9$ 255.6$ 248.2$ Diluted adjusted net earnings per share (non-GAAP): 0.33$ 0.44$ 0.52$ 0.77$ 1.07$ 1.42$ 1.48$ 1.53$ 1.15$ 1.72$ 1.80$ Diluted GAAP net earnings per share: 0.24$ 0.42$ 0.54$ 0.78$ 1.14$ 1.24$ 1.48$ 1.51$ 1.13$ 1.50$ 1.56$

(1) Transaction expenses of $21.5 for separation of the Company from Alberto-Culver in November 2006.(2) Results for fiscal year 2011, reflect a $27.0 mill ion benefit of a l itigation settlement and non-recurring charges of $5.7 mill ion.

Sheet1

Adjusted EBITDAFY04FY05FY06FY07FY08FY09FY101Q112Q113Q11FY111Q122Q123Q12FY121Q132Q133Q13FY13FY141Q152Q153Q15FY15FY16FY17

Net Earnings (GAAP)$ 105.3$ 116.5$ 110.2$ 44.5$ 77.7$ 99.1$ 143.8$ 40.9$ 49.3$ 69.1$ 213.7$ 30.1$ 67.8$ 69.5$ 233.1$ 59.0$ 64.9$ 72.4$ 261.2$ 246.0$ 54.9$ 61.5$ 62.5$ 235.1$ 222.9$ 215.1

Interest expense, net of interest income2.23.00.1146.0159.1132.0113.029.527.827.7112.564.022.426.9138.426.726.827.0107.7116.329.229.329.2116.8144.2132.9

Provision for income taxes62.173.269.938.046.265.784.121.928.639.4122.219.241.540.1127.936.236.243.1151.5144.732.138.239.2143.4131.1130.6

Depreciation and amortization24.633.938.042.648.547.151.114.114.815.359.715.615.916.364.716.817.218.872.279.720.621.022.689.499.7112.3

Share-based compensation--5.213.110.28.612.87.82.42.515.68.02.92.816.99.13.33.219.222.17.82.82.916.812.610.5

Transaction expenses (1)--41.521.5---------------------

Sales-based service fee charged by Alberto-Culver26.127.628.93.8---------------------

Expenses from data security incidents---------5.7---------2.50.21.53.25.614.6-

Restructuring charges--------1.15.3-22.7

Litigation settlement and non-recurring items, net (2)---------(27.0)(21.3)---10.2---------2.6-

Adjusted EBITDA$ 220.3$ 254.2$ 293.8$ 309.5$ 341.7$ 352.5$ 404.8$ 114.2$ 122.9$ 132.7$ 502.5$ 136.9$ 150.5$ 155.7$ 591.1$ 147.7$ 148.3$ 164.5$ 611.8$ 611.3$ 144.8$ 154.4$ 160.6$ 612.4$ 627.7$ 624.1

Adjusted net earnings and adjusted diluted earnings per share

Net Earnings (GAAP)$ 44.5$ 77.7$ 99.1$ 143.8$ 69.1$ 213.7$ 30.1$ 67.8$ 69.5$ 233.1$ 59.0$ 64.9$ 72.4$ 261.2$ 246.0$ 54.9$ 61.5$ 62.5$ 235.1$ 222.9$ 215.1

Marked-to-market adjustment for certain interest rate swaps3.04.6-(2.4)----------------

Expenses associated with the spin-off from Alverto Culver13.4----------------

Loss on extinguishment of debt--(5.3)---34.63.237.8---------33.328.0

Interest expense on redeemed debt------5.15.1---------2.1-

Amortization of deferred financing costs------0.20.2-----------

Litigation settlement and non-recurring items, net (2)----(21.3)(21.3)--10.2-----------

Loss from securiy breach incidents-------2.50.21.53.25.614.7-

Management transition costs-------3.5-2.0-

Restructuring charges--------1.15.3-22.7

Other---------0.6-

Tax provision for the adjustments to net earnings(1.4)(1.7)2.10.97.97.9(14.4)(1.2)(19.2)----(2.3)0.1(0.6)(1.6)(4.0)(20.1)(17.6)

Adjusted net earnings$ 59.5$ 80.6$ 95.9$ 142.3$ 55.8$ 200.3$ 55.7$ 67.8$ 71.6$ 267.2$ 59.0$ 59.0$ 72.4$ 261.2$ 249.7$ 55.2$ 62.5$ 65.2$ 241.9$ 255.6$ 248.2

Diluted adjusted net earnings per share (non-GAAP): $ 0.33$ 0.44$ 0.52$ 0.77$ 0.30$ 1.07$ 0.29$ 0.35$ 0.38$ 1.42$ 0.32$ 0.36$ 0.42$ 1.48$ 1.53$ 0.35$ 0.39$ 0.41$ 1.15$ 1.72$ 1.80

Diluted GAAP net earnings per share:$ 0.24$ 0.42$ 0.54$ 0.78$ 0.37$ 1.14$ 0.16$ 0.35$ 0.37$ 1.24$ 0.32$ 0.36$ 0.42$ 1.48$ 1.51$ 0.35$ 0.39$ 0.39$ 1.13$ 1.50$ 1.56

(1) Transaction expenses of $21.5 for separation of the Company from Alberto-Culver in November 2006.

(2) Results for fiscal year 2011, reflect a $27.0 million benefit of a litigation settlement and non-recurring charges of $5.7 million.

Sheet2

Sheet3

Free Cash Flow

28

2012 2013 2014 2015 2016 2017Cash Flow from Operations 297.6$ 310.5$ 316.0$ 300.8$ 351.0$ 344.4$ Less: Capital Expenditures 69.1$ 84.9$ 76.8$ 106.5$ 148.7$ 89.6$ Free Cash Flow 228.5$ 225.6$ 239.2$ 194.3$ 202.3$ 254.8$

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