Strauss Group — Investor Presentation 2020

Aug 17, 2020

Strauss Group Financial Results

1

Q2 and H1 2020 Earnings Presentation

August 17th , 2020

Disclaimer

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 contained in the presentation and any other information provided during the presentation (the "Information") does not constitute a basis for investment decisions and does not comprise a recommendation, an opinion or a substitute for the investor's sole discretion. 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 Company is not liable, and will not be held liable, for any damage and/or loss that may be caused as a result of use of the Information.

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.

GAAP to Non-GAAP Reconciliations

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)(1).

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.

Coronavirus Update

General

•

•

• Group Management is vigilantly managing the event and continues to assess and manage the risks on an ongoing basis in all countries of operations, since due to its nature this is an unfolding event that is evolving and changing constantly, sometimes on a daily basis.
• At the date of this report and throughout the quarter in general, the Group's manufacturing facilities have continued to operate normally. The Group is cooperating closely with its suppliers and customers to ensure that the supply chain is able to meet the continuing high demand that was also observed in the second quarter, and is taking steps to increase production capacity and maximize the availability of products and services.
• During the quarter the Group continued to take action to preserve financial stability and flexibility and ensure adequate liquidity in all geographies. The Company has also continued to invest in developing its brands and to strengthen its partnerships, while exploring various business opportunities and making advance preparations for the challenges that lie ahead as the year progresses.

Coronavirus Update - continued

Impacts of COVID-19 crisis on the Group's business

• Consumer behavior Trends include increased in-home consumption of food and beverages and a decline in away-from-home (AFH) consumption due to social distancing and lockdowns imposed on consumers in some countries of operations; continued growth in online shopping; a drop in purchases of impulse products, leading brands grew stronger than private labels
• Geographies Above average sales growth in Israel continued, among other things due to increased in-home food consumption following the lockdowns imposed on consumers and the closure of AFH entertainment and dining venues (albeit growth has slowed compared to the first quarter during the outbreak and lockdown phase). In the US and Eastern Europe sales have tapered off, whereas in Brazil, China and sales at the water company sales were stable.
• Product categories Growth in demand for the Group's products was evident, such as dairy products, salads and dips and spreads, chocolate tablets and honey. By contrast, sales of confectionery, single serve snacks and small packs that mainly serve for AFH consumption (particularly in Israel and the US) remained weak.
• Sales channels –Group's sales to the retail chains increased, offset by a drop in sales in the institutional and AFH market, such as hotels, offices, cafés (including the Elite Café chain), restaurants and open-air markets, and impulse (on-the-go (OTG)) sales.

Coronavirus Update - continued

Impacts on the Group's business units

• Strauss Israel Increased demand for dairy products, salads and confectionery, offset by lower demand for single serve snacks; consumer preference for larger pack sizes. Online grocery shopping continues to support increased sales to retailers offset by a drop in sales to the institutional and AFH channel. Demand for the Group's products remains high, but has slowed in relation to initial pandemic outbreak and lockdown phase. Most of the manufacturing sites and the accompanying supply chain facilities remained open. Supply chain and manufacturing costs continued to rise due to the costs of personal hygiene, separation of shifts, support of production-line and front-line employees, and contribution to the community.
• Strauss Coffee –Impact on the coffee business was mixed. Modern trade sales (sales to the large retail chains) rose moderately as consumers had stocked up on basic coffee brands, coffee beans and capsules for home consumption in preparation for the lockdowns in most countries of operations. Growth was also observed in online sales. These were offset by sales to the traditional trade channel, which includes stores, groceries and open-air markets, which suffered due to restrictions on opening hours and a drop in customer traffic. Sales to the institutional and AFH channel dropped significantly as a result of the discontinuation of the activities of hotels, cafés, restaurants, offices and the points of sale of the Elite Café chain in Israel (which accounted for c10% of coffee sales in 2019). The coffee business was impacted by rising green coffee prices and the strengthening of the USD. The coffee company's supply and distribution chain was operational throughout the quarter, with temporary local shutdown of coffee plants that were mitigated through a backup plan to supply coffee from sites in other countries.

Coronavirus Update - continued

Impacts on the Group's business units

• Strauss Water Israel a gradual return to pre-COVID activity levels was observed, IT costs continued to increase as employees shifted to working from home, and there were additional one-time costs related to hygiene and personal protective equipment.
• Strauss Water China continued to emerge from the lockdown, and in parallel, sales continued to recover. During the quarter, online sales in China grew.
• The International Dips & Spreads business During the quarter the Company's sales decreased, mainly as a result of the drop in sales to convenience stores, grocery stores and AFH sales. Supply chain challenges posed local difficulties in fully meeting demand. In addition, wage costs continued to rise due to incentives and support for production, operations and sales employees, besides the additional costs of personal protective equipment and high supply chain costs due to building high inventory levels in light of the uncertainty at the start of the crisis. Obela experienced steady demand for its dip products, and high supply chain costs due to the impacts of the lockdown in Australia.

Giora Bardea

7

Group CEO

after the COVID-19 7 months pandemic

it is clear that this crisis is Here To Stay....

let's stop waiting for " the day after " & adjust ourselves to the New Reality

Strauss remains resilient

Strong operations Financially solid Business

Gaining market share | organic growth, profit and cash flows

Optimize debt structure | reduce debt costs | maintain high credit ratings

Develop new products |enter new categories | acquire new businesses invest in the core - new sites in China and Israel, acquisitions in Brazil, Alpro distribution

continuity

Growth in local currencies despite channel mix disparity; strong performance in the retail channels and weak at impulse, Away From Home (AFH) & convenience stores due to lockdowns and continued social distancing measures

Cost control and a disciplined use of cash will enable us to continue our journey

Financial Highlights

Q2 2020 YTD 2020

Q2'20 Sales: NIS 1938mm; growth: -6.5%	YTD 2020 Sales: NIS 4106mm; growth: -1.7%
Q2'20 Organic growth excluding FX: 1.5%	YTD 2020 Organic growth excluding FX: 4.9%
Q2'20 gross margins: 38.4% (down 120 bps vs. Q2'19)	YTD 2020 Gross margins: 39.5% (down -40 bps vs. YTD 2019)
EBIT and EBIT margins: NIS 223mm (down 1.6%); 11.5% (up 50 bps vs. Q2'19)	EBIT and EBIT margins: NIS 491mm (down 1%); 12% (up 10 bps vs. YTD 2019)
Net income and net margins: NIS 135mm (up 10.1%); 6.9% (down 100 bps vs. Q2'19)	Net income and net margins: NIS 306mm (up 4%); 7.4% (up 40 bps vs. YTD 2019)
EPS: 1.16 (up 9.7% VS. Q2'19)	EPS: 2.64 (up 3.6% VS. YTD 2019)

May and June Improve after April Trough

• Following gradual lockdown reliefs, revenues return to normal levels after a challenging April
• This gradual improvement continues in July

Currency headwinds intensify during Q2

• Currency devaluations in various geographies negatively impact results:

	H1	Q2
Revenues	-266	-164
% of revenues	-6.5%	-8.5%
Gross Profit	-82	-51
% of GP	-5.1%	-7.0%
EBIT	-25	-17
% of EBIT	-5.0%	-7.6%

• Material cost tailwind on the back of strong NIS offset impact on P&L

Our Employees and Our Communities First

• We continue to care first and foremost for our employees health and safety
• And continue to support our communities worldwide

Looking forward – Investment & Innovation continue in H2

Ariel Chetrit

15

Group CFO

Quarter and Full Year Highlights

Strauss Israel

• Strauss Israel grew a stellar top line of 5.9% during Q2 2020, and an even stronger 9.1% in H1 due to ongoing COVID 19 Headwind as consumers were largely under lockdown and are a adjusting to the "new normal" of living with Coronavirus
• Sales were strong particularly in the H&W segment which was up 10.2% led by the dairy category and sales of home cooking products; but F&I was down 4.1% due to exposure to AFH and convenience stores as well as social distancing affects on consumer behavior
• Production was adjusted due to SKU rationalization
• Gross margins expanded by 100 bps due mainly to impact of strong NIS on material costs
• EBIT was up 21.7% on higher sales, efficiencies and cost savings related to COVID-19 and margins were up 150 bps to 11.5%
• Market share ticked up to 12.0% from 11.8% in the corresponding quarter as growth surpasses that of the overall F&B market

Strauss Coffee

• Strauss Coffee revenues declined by 0.8% in local currency during the quarter and by c18% in NIS due to significant currency headwinds, led by the sharp decline of the BRL vs. the NIS, as well as a weakness in AFH and foodservices channels on the back of COVID-19
• Higher quantities sold were eroded by slightly lower selling prices in some geographies and channel shift; profit margins were eroded by higher green coffee prices and higher costs associated with COVID-19
• Sales in 3C (1) were up 9.5% in local currency during the quarter on the back of higher volume that was offset by the AFH channel
• Sales in Poland were up sharply c17% whilst CIS posted a modest rise of 2.7%; lower sales were recorded in Romania and Serbia
• Coffee margins eroded due to the rise in Green Coffee prices
• 3C (1) market share in Brazil R&G value was 28.0% (2) for 2020, compared to 28.3% in H1 2019;
• The regulator in Brazil approved the Mitzui acquisition

16

• (1) Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C)
• (2) Source: Nielsen

Quarter and Full Year Highlights

International Dips & Spreads

• The Int'l D&S business posted a 9% decline in local currency as a result of lower sales at the AFH channels and convenience stores as well as challenges in the supply chain which caused difficulties in supplying demand for products
• An increase in costs associated with COVID-19 had a negative impact on profit margins
• Sabra sales declined 9% in local currency whilst sales at Obela saelswere up 5.1% in local currency but costs were higher mainly due to lockdown in Australia; despite this Obela operating loss continued to shrink during the quarter
• Sabra EBIT declined sharply due to lower sales, higher costs and mix.
• Hummus market share in North America increased to 62.6% in H1, up from 61.5%

Strauss Water

• Strauss water sales improve towards the end of the quarter as Israe came out of lockdown, however, sales during the quarter were flat mainly due to lockdown
• EBIT during the quarter was aided by a Chinese government grant of NIS c11 million for operations in a preferred region of the country
• Israel EBIT was up slightly due to mitigation plans which offset higher costs associated with COVID-19
• Sales at HSW were up 4.9% in local currency as China lifted lockdown during the quarter.
• Sales of HSW (1) (100%), water JV in China, were up 4.9% in local currency (-1.3% in NIS) in Q2 2020 to NIS 139 m from NIS 141 (2) m in Q2 2019
• H1 sales declined by 11.3% in local currency to NIS 245 m from NIS 295 (2) m in YTD 2019 (-16.9% in NIS)
• Net profits for Q2 2020 at HSW were NIS 38m up 150% in local currency (135% in NIS) from 16m NIS last year and up by 73% in H1 in local currency (61.5% in NIS) to NIS 51 m from 32 m, due the government grant

• 17 17 (1) Note: HSW revenues are not included in Strauss water results; net income is added to Strauss water EBIT in Non GAAP management reports
  • (2) Restated

Sales

Q2 2020 Consolidated Sales NIS mm Non-GAAP Q2 2020 Sales by Segment

Organic growth excluding FX : +1.5%

NIS mm; Non-GAAP; % sales contribution

Q2 Sales Bridge NIS mm; Non-GAAP; Q2'19 to Q2' 20

Gross Profit

Q2 Consolidated Gross Profit and Gross Margins NIS mm; Non-GAAP

Q2 2020 Gross Profit and Gross Margins NIS mm; Non-GAAP; % Margin

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

39.6% 39.3% 36.3% 48.9%

EBIT

Q2 Consolidated EBIT and EBIT Margins NIS mm; Non-GAAP

Q2 EBIT Bridge NIS mm; Non-GAAP; Q2'19 to Q2'20

Q2 2020 EBIT and EBIT Margins | NIS mm; Non-GAAP; % Margin

Notes:

Q

2'19

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

(2) Water EBIT includes net profits from HSW

(3) Excluding FX Strauss Coffee EBIT was down 10.3m NIS on Q2 2019

EBITDA

Q2 2020 Consolidated EBITDA and EBITDA Margins NIS mm; Non-GAAP

Q2 2020 EBITDA and EBITDA Margins NIS mm; Non-GAAP; % Margin

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

Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C). Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of June 30th , 2020. (*) EBIT before Other Expenses/ Income.

Sabra Q2 Snapshot

Sales

EBIT and EBIT Margins

NIS mm; Non-GAAP; for 100% share

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

Net Income

Q2 Net Profit (attributed to the Company's shareholders), Net Margins and EPS

Q2Net Profit (attributed to the Company's shareholders) Bridge NIS mm; Non-GAAP; Q2'19 to Q2'20

121 135 2 9 (4) (5) (6) Net Income Q2.2019 Taxes on income EBIT Non controlling interest Finance exp. Net Income Q2.2020

Net Debt and Net Debt /EBITDA (LTM)

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

* Net Debt figures for Q2 2016 and 2017 were reclassified in Q2 2018; see note 2.6 in 2018 annual report

A closer look at our Debt| Financial flexibility will enable future growth

Recent debt optimization actions were focused on lowering costs and increasing debt duration

¹Calculated based on debentures and long term loans from Banks and others in the consolidated FS (IFRS)

²calculated by dividing interest expenses to average debt, excluding one time finance expense from early redemption of loans in 2020

* Forward looking details in the above

For more information regarding debt optimization actions and assumptions, please see section 3.1.5 in Q2 2020 MD&A report

Q2 GAAP and Non-GAAP | Financial Highlights

NIS mm

	GAAP				Adjusted Non-GAAP
	Q2 2020	Q2 2019	% Chg.	Q2 2020	Q2 2019	% Chg.
Sales	1,333	1,338	(0.4%)	1,938	2,073	(6.5%)
Gross Profit	534	558	(4.3%)	743	822	(9.6%)
GP Margin	40.0%	41.7%		38.4%	39.6%
Operating Profit	208	222	(5.7%)	223	227	(1.6%)
EBIT Margin	15.6%	16.5%		11.5%	11.0%
Net Profit (to SH)	126	127	(0.7%)	135	121	10.1%
NP Margin	9.4%	9.5%		6.9%	5.9%
Operating Cash Flow	248	221		277	306
Capex (1)	(52)	(55)		(73)	(98)
Net debt	1,900	2,175		2,053	2,388
Change in WC (CF)	86	19		46	2

31 (1) Capex includes acquisitions of fixed assets and investment in intangible assets

YTD GAAP and Non-GAAP Financial Highlights

NIS mm

	GAAP			Adjusted Non-GAAP
	YTD 2020	YTD 2019	% Chg.	YTD 2020	YTD 2019	% Chg.
Sales	2,878	2,768	4.0%	4,106	4,179	(1.7%)
Gross Profit	1,169	1,145	2.1%	1,621	1,667	(2.7%)
GP Margin	40.6%	41.4%		39.5%	39.9%
Operating Profit	447	464	(3.6%)	491	496	(1.0%)
EBIT Margin	15.5%	16.7%		12.0%	11.9%
Net Profit (to SH)	282	283	(0.6%)	306	293	4.0%
NP Margin	9.8%	10.2%		7.4%	7.0%
Operating Cash Flow	369	311		354	355
Capex (1)	(100)	(101)		(139)	(168)
Net debt	1,900	2,175		2,053	2,388
Change in WC (CF)	7	(92)		(146)	(233)

(1) Capex includes acquisitions of fixed assets and investment in intangible assets 33

Sales

YTD 2020 Consolidated Sales NIS mm Non-GAAP YTD 2020 Sales by Segment

'20/'19

Organic

growth excl.

FX

Organic growth excluding FX : +4.9%

NIS mm; Non-GAAP; % sales contribution

-1.7% -11.8% 9.1% -3.8% 0.5% na

4.9% 2.3% 9.1% -0.1% 0.6% na

20%

40%

60%

80%

100%

120%

0

YTD Sales Bridge

NIS mm; Non-GAAP; YTD 2019 to YTD 2020

Gross Profit

YTD Consolidated Gross Profit and Gross Margins NIS mm; Non-GAAP

1,533 1,646 1,667 1,621 37.2% 38.5% 39.9% 39.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 YTD17 YTD18 YTD19 YTD20 D = -46mm D = 72mm D = -99mm D = -19mm NIS 1667 NIS 666 NIS 664 NIS 337 39.9% 39.6% 36.8% 48.7% 1,621 738 565 318 39.5% 40.3% 35.4% 46.9% -30 170 370 570 770 970 1,170 1,370 1,570 1,770 Overall Group Strauss Israel Strauss Coffee Spreads, Water & Other YTD 2019 GP & GM Excl. FX: 2.3% Negative translation differences NIS 82

YTD 2020 Gross Profit and Gross Margins NIS mm; Non-GAAP; % Margin

YTD EBIT Bridge NIS mm; Non-GAAP; YTD 2019 to YTD 2020

YTD 2020 EBIT and EBIT Margins NIS mm; Non-GAAP; % Margin

Notes

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

(2) Water EBIT includes net profits from HSW

(3) Excluding FX Strauss Coffee EBIT was down 8.3m NIS on H1 2019

EBITDA

YTD 2020 Consolidated EBITDA and EBITDA Margins NIS mm; Non-GAAP

YTD 2020 EBITDA and EBITDA Margins NIS mm; Non-GAAP; % Margin

Três Corações Alimentos S.A. (Três Corações J.V.)

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

450 569 567 553 26.5% 30.0% 30.2% 27.6% YTD17 YTD18 YTD19 YTD20 1,699 1,895 1,879 2,002 YTD17 YTD18 YTD19 YTD20 Sales GP and GM EBIT and EBIT Margins (1) 143 194 168 140 8.4% 10.2% 8.9% 7.0% YTD17 YTD18 YTD19 YTD20

Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C). Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of June 30th , 2020. (1) EBIT before Other Expenses/ Income.

Sabra YTD Snapshot

Sales

EBIT and EBIT Margins

Organic excl.

NIS mm; Non-GAAP; for 100% share

Net Income

Currencies

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

Strauss Israel

Strauss Israel Non-GAAP Financial Highlights Q2 and YTD 2020 NIS mm

Strauss Israel (Non GAAP)
	YTD 2020	YTD 2019	% Chg.	Q2 2020	Q2 2019	% Chg.
Revenue:
H&W	1,235	1,099	12.3%	618	561	10.2%
F&I	599	581	3.1%	233	242	(4.1%)
Total Revenue	1,834	1,680	9.1%	851	803	5.9%
Total Gross Profit	738	666	10.9%	342	316	8.4%
Gross Margins	40.3%	39.6%	0.6%	40.3%	39.3%	0.8%
EBIT:
H&W	149	119	25.6%	83	64	30.7%
Margins	12.1%	10.8%	1.3%	13.4%	11.3%	2.0%
F&I	73	73	(0.5%)	15	16	(11.8%)
Margins	12.2%	12.6%	(0.5%)	6.4%	7.0%	(0.6%)
Total EBIT	222	192	15.7%	98	80	21.7%
Margins	12.1%	11.4%	0.6%	11.5%	10.0%	1.5%
EBITDA:
H&W	193	157	23.4%	105	83	27.6%
Margins	15.7%	14.2%	1.4%	17.0%	14.7%	2.3%
F&I	103	102	0.7%	30	32	(7.7%)
Margins	17.2%	17.6%	(0.4%)	12.7%	13.2%	(0.5%)
Total EBITDA	296	259	14.3%	135	115	17.7%
Margins	16.2%	15.4%	0.8%	15.9%	14.3%	1.5%

Strauss Israel

Q2 2020 Strauss Israel Sales NIS mm; Non-GAAP

YTD 2020 Strauss Israel Sales NIS mm; Non-GAAP

Strauss Israel

Q2 2020 Strauss Israel EBIT & EBIT Margins NIS mm; Non-GAAP

YTD 2020 Strauss Israel EBIT & EBIT Margins NIS mm; Non-GAAP

Target Milk Price (NIS per liter) Prices exclude Strauss transportation costs

London Sugar Historical & Futures Prices 2015-2020 (\$\T)

London Cocoa Historical & Futures Prices 2015-2020 (GBP\T)

Strauss Coffee Non-GAAP Financial Highlights

Q2 and YTD 2020 NIS mm

Strauss Coffee (Non GAAP)
	YTD 2020	YTD 2019	% Chg.	Q2 2020	Q2 2019	% Chg.
Revenue:
Israel	368	387	(5.0%)	133	165	(19.9%)
International	1,226	1,420	(13.6%)	617	748	(17.4%)
Total Revenue	1,594	1,807	(11.8%)	750	913	(17.9%)
Total Gross Profit	565	664	(15.0%)	244	331	(26.7%)
Gross Margins	35.4%	36.8%	(1.4%)	32.4%	36.3%	(3.9%)
EBIT:
Israel	86	86	0.3%	25	28	(10.0%)
Margins	23.4%	22.2%	1.2%	19.2%	17.1%	2.1%
International	94	125	(25.0%)	48	71	(33.3%)
Margins	7.7%	8.8%	(1.3%)	7.7%	9.5%	(1.8%)
Total EBIT	180	211	(14.6%)	73	99	(26.6%)
Margins	11.3%	11.7%	(0.4%)	9.7%	10.9%	(1.2%)
EBITDA:
Israel	105	103	1.6%	35	37	(5.5%)
Margins	28.5%	26.7%	1.9%	26.5%	22.4%	4.0%
International	131	162	(19.1%)	65	89	(27.1%)
Margins	10.7%	11.4%	(0.8%)	10.6%	12.0%	(1.4%)
Total EBITDA	236	265	(11.0%)	100	126	(20.7%)
Margins	14.8%	14.7%	0.1%	13.4%	13.9%	(0.5%)

51 Note: (1) Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C). Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of June 30th , 2020.

Strauss Coffee Non-GAAP Sales by Geography Q2 and YTD 2020 NIS mm

Strauss Coffee Sales
			% Change					% Change
				Local
	YTD 2020	YTD 2019	NIS	Currency	Q2 2020	Q2 2019	NIS	Local Currency
Israel	368	387	(5.0%)	(5.0%)	133	165	(19.9%)	(19.9%)
International:
Três Corações Joint
Venture (Brazil) (1)	709	880	(19.4%)	6.5%	366	470	(22.0%)	9.5%
CIS	260	252	3.3%	10.1%	122	133	(7.6%)	2.7%
Poland	136	135	0.9%	9.8%	68	64	6.4%	16.9%
Romania	71	88	(19.2%)	(13.3%)	34	45	(26.0%)	(21.3%)
Serbia	50	65	(23.5%)	(19.6%)	27	36	(24.9%)	(21.8%)
Total International	1,226	1,420	(13.6%)	4.8%	617	748	(17.4%)	4.8%
Total Coffee	1,594	1,807	(11.8%)	2.4%	750	913	(17.9%)	(0.6%)

Note: (1) Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C). Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of June 30th , 2020. 52

Strauss Coffee

Q2 2020 Strauss Coffee Sales NIS mm; Non-GAAP

Strauss Coffee

(50%) and by the São Miguel Group (50%) (3C).

Robusta Historical & Futures Prices 2015-2020 (\$\T)

55

Arabica Historical & Futures Prices 2015-2020 (Cent\Lb)

INTERNATIONAL DIPS & SPREADS

Strauss D&S Non-GAAP Financial Highlights YTD and Q2 2020 NIS mm; 50% share

		Dips & Spreads (Non GAAP)
	YTD 2020	YTD 2019	% Chg.	Q2 2020	Q2 2019	% Chg.
Revenue:
Sabra (50%)	338	349	(3.2%)	159	179	(10.9%)
Obela (50%)	38	41	(7.1%)	18	19	(4.0%)
Total Revenue	375	390	(3.8%)	178	198	(10.3%)
EBIT:
Sabra (50%)	40	57	(29.7%)	21	30	(31.2%)
Margins	11.9%	16.4%	(4.5%)	12.8%	16.7%	(3.9%)
Obela (50%)	(3)	(5)	NM	(2)	(3)	NM
Margins	NM	NM	NM	NM	NM	NM
Total EBIT	37	52	(29.1%)	19	27	(30.4%)
Margins	9.8%	13.2%	(3.6%)	10.5%	13.5%	(3.1%)
EBITDA:
Total EBITDA	50	66	(23.4%)	25	34	(24.4%)
Margins	13.4%	16.8%	(3.5%)	14.3%	17.0%	(2.8%)

• Figures were rounded to NIS millions. Totals were calculated on the basis of the exact figures in NIS thousands.

HUMERA SESAME PRICES 2015-2020 (USD/METRIC TON)

Strauss Water

YTD 2020 Strauss Water Non-GAAP Sales NIS mm; Non-GAAP

Q2 2020 Strauss Water Non-GAAP Sales NIS mm; Non-GAAP

Strauss Water

YTD 2020 Strauss Water Non-GAAP EBIT NIS mm; Non-GAAP

Q2 2020 Strauss Water Non-GAAP EBIT NIS mm; Non-GAAP

Note: 1. Water EBIT includes net profits from HSW – YTD 19 – 14m NIS; YTD 20 – 24m NIS; Q2 19 – 7m NIS; Q2 20 – 17m NIS

1. Includes one time government grant for HSW in Q@

Thank You

For further details please contact: Daniella Finn| Investor Relations Phone: + 972-3-675-2545 Daniella.finn@Strauss-Group.com www.strauss-group.com