Regis : FY 2023 Q1 Earnings Call Presentation

Regis Corporation First Quarter 2023 Results

November 1, 2022

-1-

Cautionary Statement Regarding Forward-Looking Statements

This presentation contains or may contain "forward-looking statements" within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, "may," "believe," "project," "forecast," "expect," "estimate," "anticipate," and "plan." In addition, the following factors could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. These factors include a potential material adverse impact on our business and results of operations as a result of the COVID-19 pandemic, including any adverse impact from variants; consumer shopping trends and changes in manufacturer distribution channels; changes in regulatory and statutory laws including increases in minimum wages; laws and regulations could require us to modify current business practices and incur increased costs; changes in economic conditions; changes in consumer tastes, fashion trends and consumer spending patterns; compliance with New York Stock Exchange listing requirements; reliance on franchise royalties and overall success of our franchisees' salons; the return of sales at franchise locations to pre-pandemic levels; new merchandising strategy that utilizes third-party preferred supplier arrangements; our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' salons; the successful migration of our franchisees to the Zenoti salon technology platform; our ability to maintain and enhance the value of our brands; reliance on information technology systems; reliance on external vendors; the use of social media; failure to standardize operating processes across brands; exposure to uninsured or unidentified risks; the effectiveness of our enterprise risk management program; compliance with covenants in our financing arrangement, access to the existing revolving credit facility, and we may face an accelerated obligation to repay our indebtedness; our capital investments in technology may not achieve appropriate returns; premature termination of agreements with our franchisees; financial performance of Empire Education Group, Inc.; the continued ability of the Company to implement cost reduction initiatives and achieve expected cost savings; continued ability to compete in our business markets; reliance on our management team and other key personnel; the continued ability to maintain an effective system of internal controls over financial reporting; changes in tax exposure; the ability to use U.S. net operating loss carryforwards; potential litigation and other legal or regulatory proceedings could have an adverse effect on our business; or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A of Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K,10-Q and 8-K and Proxy Statements on Schedule 14A.

-2-

First Quarter 2023 Themes

12

Positive Start to the	Business Initiatives
Year

FY23

Key Performance

Momentum for the

IndicatorsFuture

3

4

-3-

1 Positive Start to the Year - Marking Key Milestones

In the First Quarter we:

• Generated more EBITDA than in all of fiscal 2022
• Recorded positive operating income for the first time since Q1 2018
• Strengthened our balance sheet

While significant work lies ahead, we have initiatives in place to capitalize on our transformation to an asset light, franchise model

Paving the way for a bright future for the entire Regis system

-4-

1 Positive First Quarter Results Across Metrics

• Same-store-salesincreased 4.5% versus Q1'22
• Adjusted EBITDA on a consolidated basis of $3.8 million increased $8.8 million from a loss of $5.0 million in Q1'22
• Franchise segment EBITDA of $5.0 million increased $8.5 million from a loss of $3.5 million in Q1'22
• Operating income of $2.5 million increased $7.4 million from a loss of $4.9 million in
  Q1'22
• • First quarter of positive operating income in 16 quarters
• Decreased cash use
• Capital structure strengthened
• • Renegotiated our credit agreement in Q1
  • Ended the quarter with $48 million in total liquidity

-5-