European Wax Center : 2023 ESG Report (2024)

In my time with EWC, I have worn a variety of financial, operational and other leadership hats, partnered with new franchisees, onboarded new associates and discussed our compelling story with investors and analysts. While there were inevitably some areas of change and evolution when I became Chief Executive Officer in 2023, one incredibly easy and seamless part of that transition was a continued and unequivocal commitment to our core values:

• We do the right thing
• We care about each other
• We delight our guests
• We have fun while being awesome

We ground our decision-making in these values, and our associates live them each day. They are the foundation of our long-standing success as a company. It is from these values that we have grown into the largest and fastest- growing provider of out-of-home waxing services, with an unmatched in-center experience for our guests, a superior business model for our franchise partners and a high-trust, engaging environment for our best-in-class associates where they can be their authentic selves.

Our values also inform our approach to managing the environmental, social and governance (ESG) issues that are critical to delivering long-term value to our stakeholders. I'm excited to share this 2023 ESG Report, which illustrates how our associates and other key partners brought our values to life and the incredible results that come from integrating them into our business.

You'll see in the pages that follow how we've continued to develop effective strategies and programs that support our performance on the ESG-related topics that most closely align with and influence our business strategies. I am excited to share a "behind the scenes" look at initiatives our innovative teams have put into practice around making our workplace safe and welcoming, helping our franchise partners grow their business with new tools and resources, creating an inclusive environment for our loyal guests and giving back to philanthropic causes that are close

to our hearts.

We also remained committed to being good stewards of our planet by incorporating environmental considerations into our operations and value chain management, as well

as through ongoing measurement of our own impact with our second annual assessment of energy use, greenhouse gas (GHG) emissions and water withdrawal across our corporate facilities. None of these efforts would be possible without our foundation of good corporate governance, and we are pleased to share through this report how we approach critical topics like risk management and data privacy and security.

A lot of this work would feel right all on its own - but we have demonstrated that it is also intricately tied to creating a thriving, resilient business that delivers value for all stakeholders. I appreciate your interest in this snapshot of our current location on our journey of continual ESG improvement - more to come!

David L. Willis

Chief Executive Officer and Director

CEO Letter I About European Wax Center l Our Approach to ESG l About This Report

About European Wax Center

EWC is the largest and fastest-growing franchisor and operator of out-of-home waxing services in the United States. In 2023, we provided more than 23 million waxing services through our network of more than 1,000 locations across 45 states.

We offer guests high-quality, hygienic waxing services for all genders and body types. We administer services ranging from full-body to facial hair and brow waxing by licensed, EWC-trained estheticians. Our curated line of skincare and post- waxing treatments includes proprietary EWC products designed with input from our guests and estheticians.

We strive to deliver every guest a superior experience. Our goal is for all guests to walk out of our centers strutting with confidence. A steadfast focus on providing consistent, high-quality and exceptional services has been a guiding principle for the entirety of our 20-year history. To deliver a best-in-class guest experience, we recognize the need to build a thriving business that is sustainable, safe, accessible and welcoming. We take bold steps every day to keep EWC growing, evolving and maintaining its position as an industry-leadingout-of-home waxing brand.

Key 2023 Operating Highlights

Financial and Operations Results1

Notable Recognitions

Our Values

Our core values are at the heart of everything we do, from how we treat our guests and each other

We work hard to do the right thing and do it well, from how we serve our guests and support our associates to how we formulate our products and operate our business. We're not the only ones who appreciate the work we do. The following are some of the awards and recognitions we received in 2023.

to how we operate our business in an ethical and responsible manner.

We do the right thing

We delight our guests

We care about each other

We have fun while being awesome

• NewBeauty Beauty Awards 2023 EWC TREAT® Ingrown Hair Serum
• Men's Health Grooming Awards 2023 EWC Brazilian P
• Bustle Beauty Awards 2023
  EWC TREAT® Face & Body Detoxifying Mask
• ELLE Editor's Choice Best Ingrown Hair Serum for Waxers EWC TREAT® Ingrown Hair Serum
• NYLON's 2023 Beauty Hit List Award EWC TREAT® Face & Body Exfoliating Gel

• Certified™ by Great Place to Work®
• Entrepreneur's 2023 Franchise 500® ranking #1 in Waxing / #32 Overall
• Named one of Entrepreneur's 2023 Fastest- Growing Franchises - Ranking #30
• Named one of Fortune's Best Workplaces in Texas™ (listed among small-medium businesses)

CEO Letter I About European Wax Center l Our Approach to ESG l About This Report

Our Approach to ESG

We are committed to managing the ESG issues that are most meaningful to our business and to our stakeholders, with our core values as a guide.

EWC's Highest Priority ESG Issues

Associate Health and Safety

Business Ethics and Compliance

Corporate Governance

Data Security and Privacy

Diversity, Equity and Inclusion

Human Capital Investment

and Management

Product and Service Quality and Safety

We began formalizing our approach to ESG in 2021, identifying the issues most relevant to our business and mission and developing strategies to manage them. Since then, we have created a range of programs and initiatives to further those efforts. We've communicated our progress on ESG issues to our associates, guests, investors and other stakeholders through annual reporting.

This report provides updates on how we continued to strengthen and enhance our ESG-related programs, measurement and transparency in 2023. We've done so in ways that advance our mission, reinforce our brand and support business growth. Our evolving approach to diversity, equity and inclusion (DE&I) helps us cultivate an engaging, welcoming and inclusive environment for our guests and associates. Efforts in areas such as recyclable packaging, inclusive marketing and accessible centers create more opportunities to delight our guests and do the right thing. And the continuous evolution of our approach to cybersecurity and data privacy is keeping our Company - and our guests - safer and more protected.

The programs, policies and governance structures outlined in this report serve as the foundation of our approach

to ESG. They help us continue to deliver an exceptional experience for our guests, a supportive and inclusive environment for our associates and a strong, sustainable and thriving business for our shareholders.

Stakeholder Engagement and ESG Materiality

We maintain ongoing engagement with key internal and external stakeholders - including associates, investors, customers, suppliers, community members and policymakers - to help inform and refine our management of ESG-related issues. We also closely monitor industry trends and the regulatory environment to ensure our programs and reporting reflect leading practice and prepare us for compliance with emerging regulations.

Our most recent materiality3 assessment, conducted in 2022, identified 15 key ESG topics and seven priority issues critical for EWC's long-term business performance and ability to create value. The materiality assessment provides a framework to inform our ESG strategy, goals and reporting efforts and supports ongoing dialogue with stakeholders related to our ESG program. In reviewing our 2023 business priorities, feedback from stakeholders and current regulatory and industry landscape, we found that the priority issues identified in our 2022 assessment are still those most relevant to EWC.

By continuously engaging with our stakeholders we are able to continue refining our ESG efforts. In 2023, we remained steadfast in our commitment to advancing our DE&I, workforce engagement, sustainability and cybersecurity strategies, all led and executed by our associates and their passion for doing the right thing.

Gavin O'Connor

Chief Administrative Officer

OUR PEOPLE

How we build a diverse team of associates who care about each other and deliver an amazing experience for our guests.

OUR COMPANY

The systems we have in place to maintain reliable business operations and a high standard of ethics and integrity.

OUR

PEOPLE

We depend on our associates to bring passion to their work every day, embodying our core values and delivering exceptional experiences for our guests. To do that, our associates rely on us to provide a welcoming, inclusive and empowering environment that supports them as professionals and

as people. Our associates are the heart of our company. Each day, we work to build a company where people truly want to be, stay and grow.

In This Section:

• Diversity, Equity and Inclusion
• Workforce Development
• Associate Engagement
• Associate Wellness

Diversity, Equity and Inclusion l Workforce Development l Associate Engagement l Associate Wellness

Diversity, Equity and Inclusion

A Focus on Psychological Safety

Psychological safety - the freedom to take risks, express ideas and concerns, speak up with questions and admit mistakes without fear of negative consequences - is an important element of a truly inclusive

We continually work to make EWC a place where everyone feels safe to be their authentic selves. Our focus on diversity, equity and inclusion (DE&I) is at the core of our efforts to build a supportive environment that empowers our associates and creates the best possible experience for all our guests.

Since its establishment in 2020, our DE&I Council has worked to formalize our strategy for engaging with these critical - and often complex - issues. With the Council's guidance, we developed a three-pronged approach focused on education, allyship and programming to guide our forward-looking DE&I efforts. Our director of DE&I, a corporate-level position, manages our overall DE&I strategy, working to ensure that DE&I values are embedded in every part of the business.

2023 DE&I Highlights

In 2023, we continued to strengthen our enterprise-wide approach to DE&I by developing new tools, establishing frameworks and collecting baseline metrics. Key highlights include:

• Establishing a DE&I Council charter.
• Launching new DE&I training for leaders4 and associates.
• Organizing events and programming that create opportunities for our associates to engage on DE&I issues.
• Engaging outside consultants to identify opportunities to improve disability inclusion in the guest experience.
• Beginning to develop a strategy for enhancing diversity among our vendors and suppliers.

environment. We cover this essential concept in our leadership training sessions to help set a tone of psychological safety from the top down across the Company.

Twice a year, we conduct a psychological safety pulse check in which we ask our associates to rate their current level of psychological safety on a scale of 1 (lowest) to 5 (highest). All leaders receive the results of the pulse check and our Manager Workbook to guide their response. The workbook gives leaders a range of actions they can take to demonstrate engagement, show understanding, be inclusive and avoid appearing inflexible - all of which help to foster a sense of psychological safety among their teams.

81%

99%

of corporate headquarters associates agree:5

• People here are treated fairly, regardless of race or gender.

• Leaders at EWC encourage diversity.

• My supervisor is committed to and supports DE&I.

DE&I Council

We established our DE&I Council in 2020 to shape our ongoing DE&I strategy, support its implementation and measure its progress.

Led by EWC's director of DE&I and with senior sponsorship from a member of our executive leadership team, the Council comprises executives and leaders from across the organization and meets monthly and drives initiatives across three pillars:

EDUCATION

MENTORING

ALLYSHIP

These primary focus areas guide the Council's efforts pertaining to DE&I-focused networking groups and programming.

DE&I COUNCIL CHARTER

In 2023, we published a DE&I Council charter that formalizes the Council's purpose and responsibilities, including:

The DE&I Council is committed to fostering a diverse, equitable and inclusive environment that values and embraces the different ethnicities, races, cultures, ages, abilities, gender identities and systems of belief that comprise the European Wax Center workforce. Grounded in our values, our goal is to ensure that we create awareness, community and safe spaces for all members of our team.

From the DE&I Council charter

Diversity, Equity and Inclusion l Workforce Development l Associate Engagement l Associate Wellness

DE&I Training and Education

We offer training and education programs to ensure our associates understand our DE&I strategy, as well as to impart the skills and knowledge necessary to advance our efforts. These programs take many different forms, from in-person training sessions led by our director of DE&I to webinars hosted by outside subject matter experts.

The Power of Allyship

It takes more than training and education to create an inclusive environment. With our Diversity Allies program, associates volunteer to bolster our DE&I efforts through one-on-one interactions with co-

DE&I Leadership Training: Fostering an Inclusive Environment

In 2023, EWC began hosting a series of mandatory DE&I leadership trainings for all EWC leaders.6 The series, Fostering an Inclusive Environment, took place over three live sessions attended by nearly 50 EWC leaders. Through LinkedIn Learning, virtual makeup sessions were offered to leaders who couldn't participate in the live sessions. Those virtual sessions are also now part of the required onboarding trainings that new leaders must complete upon joining EWC.

Topics covered in 2023 included:

ENCOURAGING AUTHENTICITY

DEMONSTRATING EMPATHY AND COMPASSION

PSYCHOLOGICAL SAFETY

To ensure the trainings were impactful and to inform potential future DE&I-related learning and development content, we engaged with participants following course completion to gauge their understanding of the information and to collect feedback. We also provided them with the Manager Workbook, which includes team exercises to help build psychological safety and encourage authenticity. It also includes a guide for team agreements, which helps teams establish their shared approach to communication, boundaries, workday availability and disagreement resolution.

100%

satisfaction among survey respondents following our Demonstrating Empathy and Compassion leadership session (92% very satisfied, 8% satisfied)

Gender Diversity Basics Training

We are committed to creating an environment, both in our centers and corporate headquarters, that is welcoming to everybody, regardless of their background or how they identify. To support this, EWC corporate associates attended a mandatory live webinar facilitated by an outside consultant covering important topics related to gender diversity, such as the use of pronouns. Afterward, we adapted the webinar to focus on the guest experience in our centers. That version is available through our learning management system as

an e-learning module for our in-center associate training program, and we encourage our franchise partners to share this training with their team members.

I appreciate the takeaways that we can add immediately to our day-to-day."

-DE&I Leadership Training Participant

DE&I Training for Corporate Associates and Franchisees

In 2023, we added a DE&I component to our franchisee training program to establish what DE&I means to EWC and how our approach to DE&I comes alive in our brand. All franchisees and new corporate associates are required to participate in the program, which includes live training sessions held quarterly as an introduction to the EWC brand.

See the Workforce Developmentsection for more information on our associate onboarding process.

workers. The program aims to provide a safe space for associates to talk about any topic, seek guidance and feel heard.

Our Diversity Allies spread awareness of the program by sharing their personal stories in our company- wide newsletter, which includes their contact information to encourage further dialogue. Diversity Allies are also easily identified by special graphics in their corporate email signatures and on their virtual meeting backgrounds.

Everyone who volunteers as a Diversity Ally undergoes a one-hour training session and attends quarterly committee meetings.

For me, DE&I embodies so much of what EWC strives to do as a company. Our focus on DE&I speaks directly to our core values and makes our company more successful by encouraging everyone to focus not just on our business but on each other.

Abby Napolitano

Director, Distribution and Logistics

EWC Diversity Ally