Strauss Group Financial Results

Q3 and YTD 2021 Earnings Presentation | November 16th , 2021

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 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.

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

Group Management is vigilantly managing the event and continues to assess and manage the risks on an ongoing basis in all countries of operations, as this event continues to evolve.
At the date of this report and throughout the quarter in general, the Group's manufacturing facilities have continued to operate. The Group continues to operate closelywith its suppliers and customers to ensure that the supply chain is able to meet demand.
During the quarter the Group continued to invest in developing its brands and to strengthen its partnerships, while exploring various business opportunities and making advanced preparations for various challenges that may lie ahead.
Consumer behavior – Elevated at home consumption of food and beverages continued during Q3 2021 in some categories and a continued improvement is noted in the away-from-home (AFH) segment as social distancing measures are lifted in some geographies. Vaccinations in some geographies are more wide spread than in others, however, the spread of the Delta strain in some geographies is on the rise.
Geographies – Slightly slower sales growth than in Q2 as economy stays open but due to high holiday timing as well. In the US, sales continue to come under pressure due to supply chain constraints; in Brazil, most Eastern European countries and China sales increased in local currencies in comparison to Q3 2020 as economies continue to return to pre-Covid paterns.
Product categories – Growth in demand for the Group's products was evident mainly in dairy, coffee and water. Global dips and spreads still suffering from supply chain headwinds.
Sales channels – Group's sales to the retail chainswere up aswere AFH sales as economies reopened across the world.

Giora Bardea

Group CEO

Strauss Group – Growth Momentum continues despite Raw Material Headwinds

Global increased demand and GDP growth disrupted by supply chain headwinds
Raw material inflation, global shipping increase and headwinds in the labor market persist; these are partially offset by ongoing productivity and efficiency programs
We publish another strong growth quarter backed by innovation
Solid financial standing enables us to continue planned Capex investments in full
Significant contribution to operating profit from our Kitchen Hub
Full swing into finalizing our Strategy and Purpose
Strong Homebase continues to gain momentum
Business continuity results in impressive growth despite continued challenging times of Covid pandemic

Strauss Israel

Growth momentum continues with a 2.4% increase in Q3 despite a decline of 3.6% for the F&B market in Israel during the quarter and the high holiday season during September
Market share up 0.4% to 12.3% YTD
Strong EBIT growth of 6.4%
Gross margins slightly erode 40bps as raw materials, particularly raw milk, and other costs continue to rise; however, EBIT margins are up 50bps
Strong sales in dairy andweaker sales in confectionary partly due to seasonality
AFH and OTG channel continue to improve as economy continues to reopen
Headwinds of the 4 th wave of Covid during the quarter set limitations on AFH channels and manufacturing

Strauss Coffee

Sales growth supported by pricing in Brazil and Eastern Europe on the back of high green coffee prices
Strong sales momentum on reported growth of 11.9% and organic growth excluding FX of 13.9%
Sales growth led by Brazil(1) , up 32.7% in local currency, volume growth and price increases
Brazil (2) EBIT increase of 19.6% in local currency to reach 101 BRL (in 100% terms) during the quarter
AFH segment continued to improve , however, increased Covid cases after quarter end in some geographieswill have a negative impact going forward on AFH channels
Gross margins continue to erode in Q3 by c300bps on elevated green coffee prices
Weaker growth in Israel partly due to high holiday season
CIS sales decline on increased competitionwhilst other European geographies post modest increases
EBIT declines on lower gross margins and higher operating expenses

(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: : Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of September 30th , 2021

International Dips & Spreads

Sabra sales were up 1.3% in local currency despite continued challenges in supply chain and attrition
The Int'l D&S business in NIS declined 4.9%
EBIT decline on elevated operating expenses associated with COVID-19, supply chain disruption and attrition
Afterthe end ofthe quarter a successful price raisewas implemented at Sabra
Continued efforts to further expand the Hummus category in North America
Hummus category demonstrates a steady improvement in the last quarter and Sabra's market share is up 80 bps to reach 61.7%

Strauss Water

Strong sales momentum continues during the quarter, sales up 4.9%
YTD operating profit is up 16.6% (excl. LY subsidy)
Strong sales momentum supported by sale of newly launched Edge Water Bar
Install base continues to increase across all regions - Israel, the UK and China;
Haier Strauss Water (HSW) sales up 8.9% in local currency to reach ¥ 156m during the quarter as the Chinese market continues to growpost Covid
Despite a slight decrease in HSW net income due to one time tax benefits last year, HSW Net income margin is 11.9% during the quarter
HSW continues to lead the online market in China and in September moved to 2 nd place in offline market
Production in the newsite in China continues to expand

Growth and Innovation

Largest capital gain of NIS 58mm at the Kitchen from Aleph Farms successful raising of USD 105mm
Significant contribution to operating profits
Three new portfolio companies join the Kitchen, one during the quarter and two in October to a total of 22 companies
Upland launch in the US continues

Ariel Chetrit

Group CFO

Financial Highlights Organic Excluding FX Non GAAP

Q3 2021	YTD 2021
Q3'21 Organic Sales growth : 6.9%	YTD Sales organic growth : 5.6%
Q3'21 Organic Gross Profit growth: 1.6%	YTD Organic gross profit growth: 1.6%
Q3'21 Organic EBIT growth: 21.5%	YTD EBIT organic growth: 9.8%; Growth excluding chinese subsidy in Q2 2020: 11.4%
Q3'21 Organic Net Income growth: 26.4%	YTD Net income organic growth: 14.4% Growth excluding chinese subsidy in Q2 2020: 17.1%

Financial Highlights Reported Non GAAP

Q3'21 Sales: NIS 2,297mm; growth: 5.7%

Q3'21 gross margins: 36% (down 190 bps vs. Q3'20)

EBIT and EBIT margins: NIS 300mm (up 20%); 13.1% (up +160 bps vs. Q3'20)

Net income and net margins: NIS 204mm (up 28.1%); 8.9% (up +160 bps vs. Q3'20)

Q3 2021 YTD 2021

YTD 2021 Sales: NIS 6,490mm; growth: 3.3%

YTD 2021 Gross margins: 37.5% (down 140 bps vs. YTD 2020)

EBIT and EBIT margins: NIS 801mm (up 8%); 12.3% (up +50 bps vs. YTD 2020)

Net income and net margins: NIS 536mm (up 15.4%); 8.3% (up 90 bps vs. YTD 2020)

Q3 2021

Q3 2021 Consolidated Sales NIS mm Non-GAAP

Q3 2021 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

excl. FX

Channel Quarterly Sales Development during Pandemic

Sales to the retail channels continue to grow albeit more moderately than in Q2 2021 similarly to sales in the Away From Home channels which continue to improve as lockdowns are lifted across geographies

Q1.2020Q2.2020Q3.2020Q4.2020Q1.2021Q2.2021Q3.2021

Gross Profit

Spreads

812 887 824 828 37.6% 39.6% 37.9% 36.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 600 650 700 750 800 850 900 950 Q3'18 Q3'19 Q3'20 Q3'21 0.4% 11.1% -1.8% 1.6% Q3 Consolidated Gross Profit and Gross Margins NIS mm; Non-GAAP Negative translation differences NIS -11million

Organic Gross Profit Growth excl. FX ⁼

Q3 EBIT Bridge NIS mm; Non-GAAP; Q3'20 to Q3'²¹

Q3 2021 EBIT and EBIT Margins NIS mm; Non-GAAP; % Margin

HQ w.o FoodTech

Overall Group Strauss Coffee Strauss Israel Dips & Spreads Water

FoodTech Equity HQ w.o FoodTech

Other

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

EBITDA

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

3'20

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

Q3 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).

Note: Q3 2020 figures include Mitzuirevenues for August and September

Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of September 30th , 2021.

Sabra Q3 Snapshot NIS mm; Non-GAAP; for 100% share

Organic excl.

Q3'18 Q3'19 Q3'20 Q3'21

8.4%

0.0% 2.0% 4.0% 6.0%

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

2 4 8.0% 7.0%

Net Income

Q3 Net Profit (attributed to the Company's shareholders), Net Margins and EPS

Organic Net Income Growth excl. FX ⁼

Q3 Net Profit (attributed to the Company's shareholders) Bridge

NIS mm; Non-GAAP; Q3'20 to Q3'21

Net Debt and Net Debt / EBITDA (LTM)

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

GP Margin 39.0% 40.7% 35.0% 37.9%

Operating Profit	279	259	7.7%	300	250	20.0%
EBITMargin	18.1%	75.8%		73.7%	11.5%
Net Profit (to SH)	189	168	12.6%	204	158	28.1%
NPMargin	722%	70.9%		8.9%	7.3%
Operating Flow Cash	284	163		304	183
Capex (1)	(55)	(56)		(74)	(73)
Net debt	1,687	1,747		1,926	1,993
WC Change (CF) in	100	(32)		51	(81)

Sales 1,546 1,541 0.3% 2,297 2,174 5.7%

Gross Profit 603 628 (3.9%) 828 824 0.4%

Q3 GAAP and Non-GAAP Financial Highlights, NIS mm

GAAP Adjusted Non-GAAP

Q3 2021 Q3 2020 % Chg. Q3 2021 Q3 2020 % Chg.

YTD 2021

GAAP YTD and	Non-GAAP Financial Highlights, mm NIS

GAAP	Adjusted Non-GAAP

	GAAP				Adjusted Non-GAAP
	YTD 2021	2020 YTD	% Chg.	YTD 2021	2020 YTD	% Chg.
Sales	4,513	4,419	2.1%	6,490	6,280	3.3%
Profit Gross	1,828	1,797	1.8%	2,435	2,445	(0.4%)
GP Margin	40.5%	40.7%		37.5%	38.9%
Operating Profit	759	706	7.5%	801	741	8.0%
EBITMargin	168%	16.0%		12.3%	11.8%
Net Profit (to SH)	522	450	16.2%	536	464	15.4%
NPMargin	166%	10.2%		8.3%	7.4%
Operating Flow Cash	599	532		612	581
Capex (1)	(158)	(156)		(211)	(212)
Net debt	1,687	1,747		1,926	1,993
WC Change (CF) in	(5)	(25)		(178)	(183)

YTD 2021 Consolidated Sales NIS mm Non-GAAP

YTD 2021 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

YTD Sales Bridge NIS mm; Non-GAAP; YTD 2020 to YTD 2021

Gross Profit

YTD EBIT Bridge NIS mm; Non-GAAP; YTD 2020 to YTD 2021

YTD 2021 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

government subsidy of NIS 11mm

YTD 2020

'21/'20

EBITDA

excl. FX ⁼

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

(1)Water EBIT includes net profits from HSW; 2020 water EBIT includes Chinese government subsidy of NIS 11m

YTD 2020

EBITDA &

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

YTD 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).

Note: YTD 2020 figures include Mitzuirevenues for August and September

Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of September 30th , 2021.

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

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

YTD18 YTD19 YTD20 YTD21

0.0% 2.0% 4.0% 6.0% 8.0%

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

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

Sales

Net Income

536

2021

Currencies

Change in average exchange rate (1 local currency = x NIS)

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

Change in average exchange rate (1 local currency = x USD)

Strauss Israel Non-GAAP Financial Highlights Q3 and YTD 2021 NIS mm

	Strauss	Israel (Non	GAAP)
	YTD 2021	YTD 2020	% Chg.	Q3 2021	2020 Q3	% Chg.
Revenue:
H&W	2,008	1,911	5.1%	705	676	4.3%
F&I	859	876	(2.0%)	271	277	(2.5%)
Total Revenue	2,867	2,787	2.9%	976	953	2.4%

Total Profit Gross	1,132	1,112	1.8%	379	374	1.3%
Gross Margins	39.5%	39.9%	(0.4%)	38.9%	39.3%	(0.4%)

EBIT:
H&W	261	235	10.5%	97	86	11.6%
Margins	12.9%	12.3%	0.6%	13.6%	12.7%	0.9%
F&I	89	93	(3.6%)	16	20	(15.4%)
Margins	10.4%	10.6%	(0.2%)	6.3%	7.2%	(0.9%)
Total EBIT	350	328	6.5%	113	106	6.4%
Margins	12.2%	11.8%	0.4%	11.6%	11.1%	0.5%

EBITDA:
H&W	328	304	7.9%	120	111	8.2%
Margins	16.3%	15.9%	0.4%	17.0%	16.4%	0.7%
F&I	138	139	(0.9%)	33	36	(8.0%)
Margins	16.0%	15.9%	0.1%	12.2%	13.0%	(0.8%)
Total EBITDA	466	443	5.0%	153	147	4.2%
Margins	16.2%	15.9%	0.3%	15.6%	15.4%	0.2%

NIS mm; Non-GAAP YTD 2021 Strauss Israel Sales

YTD 2021 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 2015-2021 (\$\T)

London Cocoa Historical & Futures Prices 2015-2021 (GBP\T)

Strauss Coffee Q3 and YTD 2021 NIS mm Non-GAAP Financial Highlights

	Strauss YTD 2021	Coffee (Non 2020 YTD	GAAP) %	Q3 2021	2020	%
			Chg.		Q3	Chg.
Revenue:	545	543	0.3%	173	175	(1.7%)
Israel International		1,902			676	15.4%
	2,007		5.5%	780
Total Revenue	2,552	2,445	4.4%	953	851	11.9%
Total Profit Gross	821	844	(2.8%)	285	279	1.8%
Gross Margins	32.2%	34.5%	(2.3%)	29.9%	32.9%	(3.0%)

EBIT:
Israel	120	126	(4.7%)	35	40	(13.3%)
Margins	22.0%	23.1%	(1.1%)	19.8%	22.5%	(2.7%)
International	152	157	(2.7%)	61	63	(1.8%)
Margins	7.6%	8.3%	(0.7%)	8.0%	9.4%	(1.4%)
Total EBIT	272	283	(3.7%)	96	103	(6.5%)
Margins	10.7%	11.6%	(0.9%)	10.1%	12.1%	(2.0%)
EBITDA:
Israel	140	154	(8.9%)	41	49	(16.2%)
Margins	25.8%	28.4%	(2.6%)	23.9%	28.0%	(4.1%)
International	209	213	(1.8%)	81	82	(0.6%)
Margins	10.4%	11.2%	(0.8%)	10.4%	12.1%	(1.7%)
Total EBITDA	349	367	(4.9%)	122	131	(6.5%)
Margins	13.7%	15.0%	(1.3%)	12.8%	15.4%	(2.6%)

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

51 Source: TresCora^oesAlimentos S.A. Consolidated Interim Financial Statements as of September 30th, 2021.

Strauss Coffee Non-GAAP Sales by Geography Q3 and YTD 2021 NIS mm

Coffee Strauss Sales
			% Change				% Change
	YTD 2021	2020 YTD	NIS	Organic change in local Currency	Q3 2021	2020 Q3	NIS	Organic change in local Currency
Israel	545	543	0.3%	0.3%	173	175	(1.7%)	(1.7%)
International:
Venture Tres Cora^oes Joint (Brazil) (1)	1,227	1,084	13.2%	19.6%	499	375	33.2%	32.7%
CIS	380	408	(6.8%)	3.2%	135	148	(8.5%)	(4.2%)
Poland	188	207	(9.4%)	(6.2%)	68	71	(5.1%)	2.7%
Romania	125	120	4.5%	7.1%	46	49	(5.2%)	1.4%
Serbia	87	83	5.0%	5.7%	32	33	(3.4%)	1.4%
Total International	2,007	1,902	5.5%	11.9%	780	676	15.4%	18.1%
Total Coffee	2,552	2,445	4.4%	9.2%	953	851	11.9%	13.9%

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

52 Source: Tres Cora^oesAlimentos S.A. Consolidated Interim Financial Statements as of September 30th, 2021.

YTD 2021 Strauss Coffee Sales

NIS mm; Non-GAAP

Q3 2021 Strauss Coffee EBIT & EBIT Margins

NIS mm; Non-GAAP

YTD 2021 Strauss Coffee EBIT & EBIT Margins

NIS mm; Non-GAAP

Robusta Historical & Futures Prices 2015-2021 (\$\T)

Arabica Historical & Futures Prices 2015-2021 (Cent\Lb)

International Dips & Spreads

e Dips & Spreads (Non GAAP) YTD 2021 YTD 2020 % Chg. Q3 2021 Q3 2020 % Chg. Revenue: Sabra (50%) 460 501 (8.0%) 156 164 (4.3%) Obela (50%) 63 60 4.3% 20 22 (10.7%) Total Revenue 523 561 (6.7%) 176 186 (4.9%) EBIT: Sabra (50%) 42 59 (29.6%) 13 19 (29.9%) Margins 9.0% 11.8% (2.8%) 8.5% 11.5% (3.0%) Obela (50%) (5) (5) NM (0) (2) NM Margins NM NM NM NM NM NM Total EBIT 37 54 (31.7%) 13 17 (23.8%) Margins 7.0% 9.6% (2.6%) 7.4% 9.2% (1.8%)