Strauss Group Financial Results

Q2 2022 Earnings Presentation | August 16th , 2022

Disclaimer

GAAP to Non-GAAP Reconciliations

This presentation does not constitute an offering to purchase or sell securities of Strauss Group Ltd. (the "Company") or an offer for the receipt of such offerings. The presentation's sole purpose is to provide information. The Information provided in the presentation concerning the analysis of the Company's activity is only an extract, and in order to receive a complete picture of the Company's activity and the risks it faces, one should review the Company's reports to the Israel Securities Authority and the Tel Aviv Stock Exchange.

The presentation may contain forward-looking statements as defined in the Israeli Securities Law, 5728-1968. All forward-looking statements in this presentation are made based on the Company's current expectations, evaluations and forecasts, and actual results may differ materially from those anticipated, in whole or in part, as a result of different factors including, but not limited to, changes in market conditions and in the competitive and business environment, regulatory changes, currency fluctuations or the occurrence of one or more of the Company's risk factors. In addition, forward-looking forecasts and evaluations are based on information in the Company's possession while preparing the presentation. The Company does not undertake any obligation to update forward-looking forecasts and evaluations made herein to reflect events and/or circumstances that may occur after this presentation was prepared.

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results which include the results of jointly controlled entities as if they were proportionately consolidated. Strauss Group has a number of jointly controlled companies: the Três Corações joint venture (3C) - Brazil (a company jointly held by Strauss Group (50%) and by the São Miguel Group (50%) in Brazil), Sabra Dipping Company (a 50%/50% JV with PepsiCo in the U.S. and Canada), Strauss Frito-Lay Ltd. (a 50%/50% JV with PepsiCo Frito-Lay in Israel) and PepsiCo Strauss Fresh Dips & Spreads International (a 50%/50% JV with PepsiCo outside the U.S. and Canada).

In addition, non-GAAP figures exclude any share-based payments, mark to market of commodity hedging transactions as at end-of-period, other expenses or income and taxes referring to these adjustments.

Company Management believes that these measures provide investors with transparency by helping to illustrate the underlying financial and business trends relating to the Company's results of operations and financial position and comparability between current and prior periods. Management uses these measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. Please see the GAAP to non-GAAP reconciliation tables in the Company's MD&A Report for a full reconciliation of the Company's GAAP to non-GAAP results.

Giora Bardea

Group CEO

Preparing for a gradual return to production following extensive cleaning procedures and investments in infrastructure

Q2 is hit by the closure of the factory and other expenses inflicted by the recall

All other categories post strong sales growth however commodity and other input inflation negatively impact profitability

Coffee posts a strong quarter led by Brazilwith impressive growth rates; water business continues to grow HSD

Sabra returns to manufacture and market its products, but the return is gradual and H2 will still be challenging

We remain committed to our strategy implementation

Ariel Chetrit

Group CFO

Q2 Highlights – Strauss Group

Q2 peak of confectionary and Sabra crisis
Confectionary plant is preparing for a gradual return to production following extensive cleaning procedures and investments in infrastructure
The group continues to experience significant input inflation (mainly green coffee, milk, energy, transportation) which erodes profitability. The target price of milk continued to rise and is expected have a negative impact on Q3 profitability
Global coffee selling prices increased significantly leading to a substantial improvement in sales and EBIT, mainly in Brazil
FX strengthen against NIS: mainly BRL, RUB and USD contribute 62M' to sales in Q2
The Company anticipates that Sabra will conclude the second half of 2022 with an operating loss of USD 3-9 million (for 50% ofthe company)

Strauss Israel

The confectionary plant is preparing to gradually return to manufacturing after extensive cleaning procedures and investments in infrastructure
SKU rationalization at the confectionary business; outsourcing expanded
Q2 Recall effect – Sales (-173M'); EBIT (-99M'); Net income (-76M');
Strong sales growth in all other categories (+4.1%)
Commodity inflationary pressures continue led by raw milk and energy
Strauss market share in the first half of 2022 decreased to 10.7% compared to 12.2% as a result of the confectionary recall, market share in other categories remained stable

Strauss Coffee

Strong sales momentum on reported growth of 45.0% and 39.2% in Q2 and H1, respectively. organic growth excluding FX of 38.3% and 37.3% in Q2 and H1, respectively
Sales growth was led by Brazil(1) in local currency, up 51.4% and 62.4% in Q2 and H1, respectively, mainly due to price increase and volume growth in the first half of 2022
Strong sales growth (double digits) in all countries in LC in Q2, including Israel
Gross margin continues to erode due to significantly higher green coffee prices and other input inflation
EBIT increases on higher sales offset by lower gross margins
AFH segment continued to improve across most geographies, which was greatly affected by corona restrictions in the corresponding period last year
Positive FX translation effects as a result of the strengthening of the BRL and the RUB against the ILS

International Dips & Spreads

The adjustments at Sabra continued during the quarter and resulted in higher costs and lower production capacity
Sales declined 67.0% in the second quarterin local currency mainly due to the adjustment plan
Operating loss as a result ofthe decrease in sales alongwith fixed costs and one-time expenses
Sabra's Hummus market share is down to 33.0% due to inability to meet demand but is still the leading Hummus provider
Sabra anticipates an operating loss of USD 3-9 million (reflecting 50%), including one-time amounts of USD 1-2 million (for 50%) in the second half of 2022

Strauss Water

Strong sales momentum continues with a 7.3% increase for the second quarter due to high appliances sales & upgrades
Installed base continues to increase in Israel
Haier Strauss Water (HSW) sales growth of 6.7% in local currency to reach ¥ 693m in the first half of 2022 despite April Covid lock downs in china
Operating profit margin in the first half is up 12.7% vs 12.4% in the corresponding period despite commodity inflationary pressure
Production in the new manufacturing facility in China continues to increase

Growth and Innovation

Overall equity capital loss of NIS 7m during the quarter
Fair value of NIS 559m as of June 30th 2022 compared to 147m as of June 30st 2021
A new company joined the Kitchen portfolio to a total of 23 companies
3 portfolio companies completed funding rounds this quarter, Including Imagindairy that raised 28 million dollars
Advanced preparations for operating The Kitchen Hub 2.0 on September 1 st , after winning the Innovation Authority's tender for tech incubators

Financial Highlights Organic Excluding FX Non GAAP

Q2 2022

Q2'22 Organic Sales growth: 4.6%

Q2'22 Organic Gross Profit growth: -13.9%

Q2'22 Organic EBIT growth: -52.3%

Q2'22 Organic Net Income growth: -45.8%

YTD 2022

YTD Sales organic growth: 8%

YTD Organic gross profit growth: -15.8%

YTD EBIT organic growth: -59.1%

YTD Net income organic growth: -66.3%

Financial Highlights Reported Non GAAP

Q2'22 Sales: NIS 2,276mm; growth: 6.8%

Q2'22 gross margins: 30.4% (down 690 bps vs. Q2'21)

EBIT and EBIT margins: NIS 102mm (down -51.5%); 4.5% (down -550 bps vs. Q2'21)

Net income and net margins: NIS 70mm (down -44.8%); 3.1% (down -280 bps vs. Q2'21)

Q2 2022 YTD 2022

YTD 2022 Sales: NIS 4,548mm; growth: 8.5%

YTD 2022 Gross margins: 29.8% (down 850 bps vs. YTD 2021)

EBIT and EBIT margins: NIS 204mm (down 59.1%); 4.5% (down -740 bps vs. YTD 2021)

Net income and net margins: NIS 113mm (down -66.2%); 2.5% (down -540 bps vs. YTD 2021)

Q2 2022

Sales

Q2 2022 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

Q2 Sales Bridge NIS mm; Non-GAAP; Q2'21 to Q2' ²²

Gross Profit

Spreads

Q2 2022 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q2 EBIT Bridge NIS mm; Non-GAAP; Q2'21 to Q2'²²

Q2 2022 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

HQ w.o FoodTech Other

Overall Group Strauss Coffee Strauss Israel Dips & Spreads Water FoodTech Equity HQ w.o FoodTech Other

from HSW

Q2'21

'22/'21

EBITDA

Q2'21

EBITDA and

Três Corações Alimentos S.A. (Três Corações J.V.) Q2 Snapshot | BRL mm for 100% ownership and including inter-company sales 2,076 +22.0% +51.4%

Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C).

23 Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of June 30th , 2022. (*) EBIT before Other Expenses/ Income.

24 Note: Sabra Dipping Company ("Sabra") is a company jointly held by PepsiCo (50%) and Strauss Group (50%) .

Sabra Q2 Snapshot \$ mm; Non-GAAP; for 100% share

Lower sales due

Net Income

121 135 126 5.9% 70 6.9% 5.9% 3.1% - 20 40 60 80 100 120 140 160 Q2'19 Q2'20 Q2'21 Q2'22 +10.1% -6.3% -44.8% +3.3% -6.2% -45.8% 25 Q2 Net Profit (attributed to the Company's shareholders), Net Margins and EPS NIS mm; Non-GAAP Organic Net Income Growth excl. FX ⁼ 1.06 1.16 1.08 0.60 -44.9% Net Income Q2.2021

Q2 Net Profit (attributed to the Company's shareholders) Bridge

* Including (1)M' ILS Obela change

Net Debt and Net Debt / EBITDA (LTM)

Non-GAAP EBITDA, net debt includes partnerships; NIS mm

Non-GAAP GAAP Q2 and	Financial Highlights, mm NIS	■9

	GAAP			Non-GAAP Adjusted
	Q2 2022	Q2 2021	% Chg.	Q2 2022	Q2 2021	% Chg.
Sales	1,421	1,458	(2.5%)	2,276	2,132	6.8%
Gross Profit	502	595	(15.7%)	691	795	(13.0%)
GPMargin	35.3%	40.8%		30.4%	37.30%
Operating Profit	76	207	(63.2%)	102	212	(51.5%)
EBITMargin	5.4%	74.2%		4.5%	70.0%
Profit Net (to SH)	55	130	(57.8%)	70	126	(44.8%)
NPMargin	3.9%	8.9%		3.7%	5.9%
Operating Cash Flow	120	106		140	130
Capex (1)	(78)	(55)		(101)	(72)
debt Net	2,086	1,896		2,455	2,156
WC Change (CF) in	(14)	(82)		(38)	(119)

YTD 2022

YTD 2022 Consolidated Sales NIS mm Non-GAAP

YTD 2022 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

YTD Sales Bridge NIS mm; Non-GAAP; YTD ²⁰²¹ to YTD ²⁰²²

* Including (2)M' ILSObela change

Gross Profit

EBIT

YTD 2022 EBIT and EBIT Margins NIS mm; Non-GAAP; % Margin

EBITDA

35 * Note change in EBITDA due to new IFRS16 rules as of ²⁰¹⁹

EBITDA

Tres Cora^oes Alimentos S.A. (Tres Cora0esj.V.) ■9

YTD Snapshot ^| BRL mm for 100% ownership and including inter-company sales

YTD19 YTD20 YTD21 YTD22

Note: Tres Cora^oes joint venture (Brazil): a companyjointly held by the Group (50%) and by the Sao Miguel Group (50%) (3C).

Source: Tres Cora^oes Alimentos S.A. Consolidated Interim Financial Statements as ofJune 30th, 2022. (*) EBIT before Other Expenses/ Income. 37

Sabra YTD Snapshot \$ mm; Non-GAAP; for 100% share

Lower sales due to decrease in production

Net Income

YTD Net Profit (attributed to the Company's shareholders), Net Margins and EPS

YTD Net Profit (attributed to the Company s shareholders) Bridge

NIS mm; Non-GAAP NIS mm; Non-GAAP; YTD 2021 to YTD 2022

YTD GAAP and Non-GAAP Financial Highlights, NIS mm

	GAAP			Non-GAAP Adjusted
	YTD 2022	YTD 2021	% Chg.	YTD 2022	YTD 2021	% Chg.
Sales	2,932	2,967	(1.2%)	4,548	4,193	8.5%
Profit Gross	961	1,225	(21.6%)	1,353	1,607	(15.8%)
GPMargin	32.8%	41.3%		29.8%	38.3%
Operating Profit	157	480	(67.3%)	204	501	(59.1%)
EBITMargin	5.4%	15.2%		4.5%	199%
Net Profit (to SH)	69	333	(79.3%)	113	332	(66.2%)
NPMargin	2.4%	11.2%		2.5%	7.9%
Operating Flow Cash	89	315		16	308
Capex (1)	(137)	(103)		(179)	(137)
Net debt	2,086	1,896		2,455	2,156
WC Change in (CF)	(103)	(105)		(285)	(229)

Currencies

Local Currencies vs. the NIS Local Currencies vs. the USD

Strauss Israel Non-GAAP Financial Highlights Q2 and YTD 2022 NIS mm

	Strauss	Israel (Non	GAAP)
	2022 Q2	2021 Q2	Chg. %	2022 YTD	2021 YTD	% Chg.
Revenue:
H&W	672	664	1.2%	1,341	1,303	2.9%
F&I	101	253	(60.1%)	407	588	(30.8%)
Total Revenue	773	917	(15.7%)	1,748	1,891	(7.6%)
Total Gross Profit	253	362	(29.8%)	505	753	(32.9%)
Gross Margins	32.8%	39.5%	(6.6%)	28.9%	39.8%	(10.9%)
EBIT:
H&W	64	88	(26.3%)	146	164	(10.7%)
Margins	9.6%	13.2%	(3.6%)	10.9%	12.6%	(1.7%)
F&I	(75)	20	(471.9%)	(172)	73	(337.7%)
Margins	(74.4%)	8.0%	(82.40%)	(42.4%)	12.3%	(54.7%)
Total EBIT	(11)	108	(110.0%)	(26)	237	(111.0%)
Margins	(1.4%)	11.7%	(13.1%)	(1.5%)	12.5%	(14.0%)
EBITDA:

H&W	88	109	(19.8%)	192	208	(7.7%)
Margins	13.1%	16.5%	(3.4%)	14.3%	16.0%	(1.7%)
F&I	(59)	37	(261.9%)	(138)	105	(232.5%)
Margins	(58.7%)	14.5%	(73. 1%)	(34.1%)	178%	(51.9%)
EBITDA Total	29	146	(80.5%)	54	313	(82.9%)
Margins	3.7%	15.9%	(12.2%)	3.1%	16.5%	(13.5%)

@Strauss Israel

EBIT growth excl.

Confectionary 44

Target Milk Prices ^| 2012-2022 (ILS per Liter)

London Sugar Historical & Futures Prices ^| 2015-2022 (\$\T)

London Cocoa Historical & Futures Prices ^| 2015-2022 (GBP\T)

Strauss Coffee Q2 and YTD 2022 NIS mm Non-GAAP Financial Highlights

	Strauss GAAP) Coffee (Non
	Q2 2022	Q2 2021	% Chg.	YTD 2022	YTD 2021	% Chg.
Revenue:
Israel	180	163	10.5%	395	372	6.1%
International	1,050	685	53.2%	1,831	1,227	49.2%
Total Revenue	1,230	848	45.0%	2,226	1,599	39.2%

Gross Total Profit	360	264	36.3%	655	536	22.3%
GrossMargins	29.3%	31.2%	(1.9%)	29.4%	33.5%	(4.1%)

EBIT:
Israel	20	26	(23.5%)	67	85	(20.7%)
Margins	11.6%	16.8%	(5.2%)	17.2%	23.0%	(5.8%)
International	107	51	110.5%	165	91	82.1%
Margins	10.2%	7.4%	2.8%	9.0%	7.4%	1.6%
Total EBIT	127	77	63.8%	232	176	32.1%
Margins	00.4%	9.2%	1.2%	10.5%	11.0%	(05%)
EBITDA:
Israel	31	34	(5.9%)	87	99	(11.6%)
Margins	178%	20.9%	(3. 1%)	22.2%	26.6%	(4.4%)
International	128	68	86.9%	205	128	60.3%
Margins	12.2%	10.0%	2.2%	11.2%	10.4%	08%
EBITDA Total	159	102	56.1%	292	227	28.8%
Margins	13.0%	12.1%	0.9%	13.1%	14.2%	(1. 1%)

Note: (1) Tres Cora^oes joint venture (Brazil): a companyjointly held by the Group (50%) and by the Sao Miguel Group (50%) (3C).

48 Source: Tres Cora^oesAlimentos S.A. Consolidated Interim Financial Statements as of June 30th, 2022.

Strauss Coffee Non-GAAP Sales by Geography Q2 and YTD 2022 NIS mm

Strauss Coffee Sales
			% Change				% Change
	2022 Q2	Q2 2021	NIS	Organic change in local Currency	2022 YTD	YTD 2021	NIS	Organic change in local Currency
Israel	180	163	10.5%	10.5%	395	372	6.1%	6.1%
International:
Venture Tres Cora^oes Joint (Brazil) (1)	705	422	66.9%	51.4%	1,264	728	73.5%	62.4%
& Ukraine Russia	191	123	55.1%	39.8%	283	245	15.4%	16.0%
Poland	71	69	5.2%	18.9%	135	120	13.4%	27.6%
Romania	48	41	16.0%	29.1%	86	79	9.4%	22.0%
Serbia	35	30	16.0%	28.0%	63	55	14.0%	25.6%
Total International	1,050	685	53.2%	44.5%	1,831	1,227	49.2%	46.6%

Total Coffee	1,230	848	45.0%	38.3%	2,226	1,599	39.2%	37.3%

Note: (1) Tres Cora^oes joint venture (Brazil): a companyjointly held by the Group (50%) and by the Sao Miguel Group (50%) (3C).

Source: Tres Cora^oesAlimentos S.A. Consolidated Interim Financial Statements as of June 30th, 2022.

Arabica Historical & Futures Prices ^| 2015-2022 (C\Lbs.)

Robusta Historical & Futures Prices ^| 2015-2022 (\$\T)

International Dips & Spreads Strauss D&S Non-GAAP Financial Highlights ^| Q2 and YTD 2022 NIS mm; 50% share

e Dips & Spreads (Non GAAP) Q2 2022 Q2 2021 % Chg. YTD 2022 YTD 2021 % Chg. Revenue: Sabra (50%) 54 160 (66.2%) 151 304 (50.2%) Obela (50%) 20 21 (6.0%) 41 43 (4.7%) Total Revenue 74 181 (59.2%) 192 347 (44.6%) EBIT: Sabra (50%) (28) 13 (326.8%) (43) 29 (252.9%) Margins (52.0%) 7.8% (59.9%) (28.6%) 9.3% (37.9%) Obela (50%) (3) (2) NM (5) (5) NM Margins NM NM NM NM NM NM Total EBIT (31) 11 NM (48) 24 (304.2%) Margins (42.5%) 5.7% (48.1%) (25.2%) 6.8% (32.0%) EBITDA: Total EBITDA (22) 17 (228.5%) (32) 37 (187.0%) Margins (29.4%) 9.3% (38.7%) (16.7%) 10.6% (27.3%)