Strauss Group Financial Results

Q3 2022 Earnings Presentation | November 28th , 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

Sales and market share gains in Strauss Israel excluding confectionary

Production has commenced at confectionary plant in Israel and our products are back on the shelves as we continue to gain traction at retailers

Sabra returns to full manufacturing capacity and marketing products, however, return to shelves is gradual and whilst H2 remains challenging Sabra is expected to breakeven in Q4

Yet another stellar quarter for coffee with a 37% growth in sales once again led by Brazil up 33% and for water with a 9% increase in sales and a growing installed base

Commodity inflation continues to negatively impact margins as milk target prices rise sharply in Q3 among others

We continue to execute on our strategy and have started implementing a cross-company reorganization

Ariel Chetrit

Group CFO

Q3 Highlights – Strauss Group

Strauss Group sales grew 8.5% during the quarter led by the Coffee business, whilst all categories posted sales growthwith the exception of Confectionary and Sabra;
Strauss is growing in market share in Israel (excl. Confectionery) and in coffee international;
Confectionery & Sabra businesses gradually return to the shelves and post a gradual increase in market share
The group continues to experience significant input inflation (mainly green coffee, milk, & energy)which erodes profitability. The target price of milk rose sharply during the quarter
Higher global coffee selling prices led to a substantial improvement in sales and EBIT, mainly in Brazil and Eastern Europe
FX strengthen against NIS: mainly BRL, RUB and USD contributes in Q3 33M' to sales
The Company anticipates that Sabrawill reach break-even in Q4 2022

Strauss Israel

Strauss Israel sales decline 10.7% due to confectionary recall, sales are up 3.8% excluding confectionary
Health and Wellness business rises 3.2% led by dairy
All other categories, bar confectionary, are up during the quarter
The effect on net income of the confectionary recall will range between NIS 290-310 million in 2022
Strauss Israel YTD Market share in relevant categories is up excluding Confectionery
Commodity inflationary pressures continue led by raw milk prices, energy and other raw materials
The confectionery plant returned to almost full production during November
Fun & Indulgence segment posts an operating loss of(77mm) due to Confectionery

Strauss Coffee

Strong sales momentum continues with reported growth of 37.3% and 38.5% in Q3 and YTD, respectively. Organic growth excluding FX is 33.5% and 35.9% in Q3 and YTD, respectively
Sales growth was led by Brazil(1) in local currency (up 33.6% and 50.8% in Q3 and YTD, respectively, mainly due to price increase and volume growth) and by Russia (mainly price increase and higher volumes)
Strong sales growth in local currency (double digits) in all countries, bar Serbia.
In Israel margins continue to erode due to higher green coffee prices and otherinput inflation
EBIT increases by 51% to 146M' due to the international activity, partially offset by lower margins in Israel
Positive FX translation affects sales as a result of the strengthening of the BRL and the RUB againstthe ILS

International Dips & Spreads

Manufacturing facilities at Sabra return to full capacity after adjustment plan
Sales are ramping up gradually however, are down 50.3% in Q3 in local currency mainly due to the adjustment plan
Operating loss as a result of the decrease in sales along margin erosion due to higher costs and input inflation
Sabra continues to regain hummus market share since its trough
Sabra is expected to be break-even in Q4 2022

10 Note: HSW revenues are not included in Strauss water results; net income is added to Strauss water EBIT in Non GAAP management reports

Strong sales momentum continues with a 9.1% increase in the Q3 due to new product launches of and upgrades in Israel and the launch ofthe Elementwater barin the UK
Install base continues to increase in Israel, partially due to Edgewater barrelaunch
Haier Strauss Water (HSW) sales grew 4.6% in local currency to reach ¥ 326m in the Q3 despite some disruption due to Covid lockdowns in china
Strauss Water operating profit margin erodes in the Q3 to12.2% vs.13.2% in the corresponding period due to commodity inflationary pressure
Production in the new manufacturing facility in China continues to increase

Growth and Innovation

Strauss' share of the The Kitchen Hub companies' losses during the third quarteris NIS 13m
Fair value of NIS 556m as of September 30th 2022 compared to 326m as of September 30th 2021
The Kitchen hub portfolio has a total of 23 companies
Foodtech IL 2022 conference during November attracted over 2,000 delegates, including 600 from overseas, and 70 Israeli Foodtech startups
The kitchen hub 2.0 license to operate commenced in October

Financial Highlights Organic Excluding FX Non GAAP

Q3 2022

Q3'22 Organic Sales growth: 7%

Q3'22 Organic Gross Profit growth: -10.5%

Q3'22 Organic EBIT growth: -63.4%

Q3'22 Organic Net Income growth: -82.6%

YTD 2022

YTD Sales organic growth: 7.6%

YTD Organic gross profit growth: -14%

YTD EBIT organic growth: -60.7%

YTD Net income organic growth: -72.5%

Financial Highlights Reported Non gaap

Q3'22 Sales: NIS 2,493mm; growth: 8.5%

Q3'22 gross margins: 29.9% (down 610 bps vs. Q3'21)

EBIT and EBIT margins: NIS 111 mm (down -63.3%); 4.4% (down -870 bps vs. Q3'21)

Net income and net margins: NIS 35mm (down -82.4%); 1.4% (down -750 bps vs. Q3'21)

Q3 2022 YTD 2022

YTD 2022 Sales: NIS 7,041mm; growth: 8.5%

YTD 2022 Gross margins: _________ 29.8% (down 770 bps vs. YTD 2021)_________

EBIT and EBIT margins: NIS 315mm (down 60.6%); 4.5% (down -780 bps vs. YTD _____________________ 2021)_____________________

Net income and net margins: NIS 148mm (down -72.3%); 2.1% (down -620 bps vs. YTD 2021)

Q3 2022

Sales

Growth excl. FX ⁼

Q3 2022 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

Q3 Sales Bridge NIS mm; Non-GAAP; Q3'21 to Q3' ²²

Gross Profit

Spreads

Q3 2022 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q3 EBIT Bridge NIS mm; Non-GAAP; Q3'21 to Q3'²²

Q3 2022 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

'22/'21

Organic

growth

3'21

EBIT &

EBIT %

(2) Water EBIT includes net profits from HSW

EBITDA

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

EBITDA

3'21

EBITDA and

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).

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

-25 -20 -15

Q3'19 Q3'20 Q3'21 Q3'22

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

-21

-43.0%

Net Income

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

Net Income

26 * Including (1)M' ILS Obela change

Net Debt and Net Debt / EBITDA (LTM)

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

Q3 GAAP and Non-GAAP Financial Highlights, NIS mm ■9

		GAAP	Non-GAAP Adjusted
	Q3 2022	Q3 2021	% Chg.	Q3 2022	Q3 2021	% Chg.
Sales	1,608	1,546	4.1%	2,493	2,297	8.5%
Gross Profit	532	603	(11.7%)	746	828	(9.9%)
GPMargin	33.1%	39.0%		29.9%	36.0%
Operating Profit	84	279	(69.9%)	111	300	(63.3%)
EBITMargin	5.2%	18.1%		4.4%	13.1%
Profit Net (to SH)	27	189	(85.7%)	35	204	(82.4%)
NPMargin	1.7%	12.2%		1.4%	8.9%
Operating Cash Flow	42	284		75	304
Capex (1)	(91)	(55)		(112)	(74)
Net debt	2,123	1,687		2,517	1,926
WC Change (CF) in	(57)	100		(66)	51

YTD 2022

6,422 6,280 6,490 7,041 1300 2300 3300 4300 5300 6300 7300 8300 YTD19 YTD20 YTD21 YTD22 +4.5% +5.6% +7.6% -2.2% +3.3% +8.5% YTD 2022 Consolidated Sales NIS mm Non-GAAP Positive translation differences = NIS 52 mm Organic Sales Growth excl. FX ⁼

YTD 2022 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

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

Gross Profit

YTD 2022 Gross Profit and Gross Margins

YTD 2021

EBIT Lower EBIT despite higher topline due to confectionary recall & Sabra adjustment In addition to rising commodity prices and shipping

YTD 2022 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

EBITDA

YTD'21

EBITDA and

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).

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

Sales

GP and GM

EBIT and EBIT Margins (*)

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

Lower sales due to

Net Income

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

Net Income

YTD GAAP and Non-GAAP Financial Highlights, NIS mm

			GAAP	Non-GAAP Adjusted
	YTD	2022	YTD 2021	% Chg.	YTD 2022	YTD 2021	% Chg.
Sales		4,540	4,513	0.6%	7,041	6,490	8.5%
Gross Profit		1,493	1,828	(18.3%)	2,099	2,435	(13.8%)
GPMargin		32.9%	40.5%		29.8%	37.5%
Operating Profit		241	759	(68.2%)	315	801	(60.6%)
EBITMargin		5.3%	16.8%		4.5%	12.3%
Net Profit (to SH)		98	522	(81.6%)	148	536	(72.3%)
NPMargin		2.1%	11.5%		2.1%	8.3%
Operating Cash Flow		131	599		91	612
Capex (1)		(228)	(158)		(291)	(211)
Net debt		2,123	1,687		2,517	1,926
Change WC (CF) in		(160)	(5)		(351)	(178)

Currencies

	Strauss	Israel (Non	GAAP)
	2022 Q3	2021 Q3	Chg. %	2022 YTD	YTD 2021	Chg. %
Revenue:
H&W	728	705	3.2%	2,069	2,008	3.0%
F&l	143	271	(47.0%)	550	859	(35.9%)
Total Revenue	871	976	(10.7%)	2,619	2,867	(8.6%)
Total Profit Gross	253	379	(33.4%)	758	1,132	(33.0%)
Margins Gross	29.0%	38.9%	(9.9%)	28.9%	39.5%	(10.5%)
EBIT:
H&W	66	97	(31.8%)	212	261	(18.5%)
Margins	9.0%	13.6%	(4.6%)	10.2%	12.9%	(2.7%)
F&l	(77)	16	(550.1%)	(249)	89	(377.9%)
Margins	(53.3%)	6.3%	(59.5%)	(45.2%)	10.4%	(55.6%)
Total EBIT	(11)	113	(109.5%)	(37)	350	(110.5%)
Margins	(1.2%)	11.6%	(12.8%)	(1.4%)	12.2%	(13.6%)
EBITDA:
H&W	89	120	(26.0%)	281	328	(14.4%)
Margins	12.2%	17.0%	(4.8%)	13.6%	16.3%	(2.8%)
F&l	(59)	33	\$163%}	(197)	138	(242.9%)
Margins	(40.7%)	12.2%	(52.9%)	(35.8%)	16.0%	(51.8%)

Total EBITDA 30 153 (80.1%) 84 466 (82.0%) Margins 3.5% 15.6% (12.2%) 3.2% 16.2%) (13.0%)

Strauss Israel

Confectionary

YTD 2022 Strauss Israel Sales

NIS mm; Non-GAAP

EBIT growth excl. Confectionary ⁼

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

Source: Israeli Dairy Board (Production and Marketing) website

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

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

Strauss Coffee Q3 and YTD 2022 NIS mm Non-GAAP Financial Highlights

	Strauss	Coffee (Non	GAAP)
	2022 Q3	2021 Q3	% Chg.	2022 YTD	YTD 2021	% Chg.
Revenue:
Israel	200	173	15.7%	595	545	9.1%
International	1,108	780	42.2%	2,939	2,007	46.5%
Total Revenue	1,308	953	37.3%	3,534	2,552	38.5%
Total Gross Profit	391	285	36.9%	1,046	821	27.3%
Gross Margins	29.8%	29.9%	(0.1%)	29.6%	32.2%	(2.6%)
EBIT:
Israel	24	35	(31.0%)	91	120	(23.7%)
Margins	11.8%	19.8%	(8.0%)	15.4%	22.0%	(6.6%)
International	122	61	95.6%	287	152	87.6%
Margins	10.9%	8.0%	2.9%	9.8%	76%	2.1%
Total EBIT	146	96	51.0%	378	272	38.8%
Margins	11.1%	10.1%	1.0%	10.7%	10.7%	0.0%
EBITDA:
Israel	35	41	(16.3%)	122	140	(13.0%)
Margins	173%	23.9%	(6.6%)	20.6%	25.8%	(5.2%)
International	144	81	77.2%	349	209	66.8%
Margins	12.9%	10.4%	2.5%	11.8%	10.4%	1.4%
Total EBITDA	179	122	45.9%	471	349	34.8%
Margins	15.5%	12.8%	0.8%	13.3%	13.7%	(0.4%)

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

50 Source: Tres Cora^oesAlimentos S.A. Consolidated Interim Financial Statements as of September30th, 2022.

Strauss Coffee Non-GAAP Sales by Geography Q3 and YTD 2022 NIS mm

Strauss Coffee Sales
			% Change				% Change
	2022 Q3	Q3 2021	NIS	Organic change in local Currency	YTD 2022	YTD 2021	NIS	Organic change in local Currency
Israel	200	173	15.7%	15.7%	595	545	9.1%	9.1%
International:
Tres Cora^oes Venture Joint (Brazil) (1)	697	499	40.1%	33.6%	1,961	1,227	59.9%	50.8%
Russia & Ukraine	259	135	92.1%	66.9%	542	380	42.6%	35.8%
Poland	73	68	7.1%	23.5%	208	188	11.1%	26.1%
Romania	48	46	2.7%	13.7%	134	125	6.9%	18.8%
Serbia	31	32	(3.1%)	7.6%	94	87	7.7%	18.8%
Total International	1,108	780	42.2%	37.3%	2,939	2,007	46.5%	42.9%

Total Coffee	1,308	953	37.3%	33.5%	3,534	2,552	38.5%	35.9%

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 September 30th, 2022.

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

YTD 2022 Strauss Coffee EBIT & EBIT Margins

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 ^| Q3 and YTD 2022 NIS mm; 50% share

e	International		& Dips		Spreads

	Dips &	Spreads (Non	GAAP)
	2022 Q3	Q3 2021	% Chg.	YTD 2022	YTD 2021	% Chg.
Revenue:
(50%) Sabra	82	157	(47.6%)	233	461	(49.3%)
(50%) Obela	22	20	8.2%	63	63	(0.7%)
Total Revenue	104	176	(41.4%)	296	523	(43.5%)

EBIT:
Sabra (50%)	(36)	13	(367.1%)	(79)	42	(288.0%)
Margins	(43.0%)	8.5%	(51.5%)	(33.7%)	9.0%	(42.7%)
Obela (50%)	(1)	(0)	NM	(6)	(5)	NM
Margins	NM	NM	NM	NM	NM	NM
Total EBIT	(37)	13	NM	(85)	37	(331.1%)
Margins	(35.4%)	7.4%	(42.8%)	(28.7%)	7.0%	(35.7%)

EBITDA:
Total EBITDA	(29)	19	(247.2%)	(61)	56	(207.7%)
Margins	(27.6%)	H.0%	(38.6%)	(20.5%)	10.8%	(31.3%)