Strauss Group Financial Results

Q1 2022 Earnings Presentation | May 25th , 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

Strauss Is a resilient company with the right people, brands & partnersto emerge stronger from this crisis as we have done successfully over the last 80 years

Our diversified portfolio continues to expand generating double digit growth – Coffee, Water, Health & Wellness and our Foodtech continue to execute well , providing stable & healthy growth

In the face of confectionary & Sabra challenges we are more determined than ever to fix the issues & exit stronger with better infrastructure. We are confident that we will return to full capacity, in the near future

Strauss Israel other business were unaffected by the recall, continue to execute well showing stable growth

Russia Ukraine – business is gradually returning, we continue to support our employees, overall, there is no material financial impact

We remain committed as ever to all our stakeholders, to our strategic plan & to meet our goals

Ariel Chetrit

Group CFO

Strauss Israel

Strauss Israel announced a voluntary recall of all products manufactured in the confectionary factory in Nof HaGalil on April 24th
The confectionary plantwill return to full operation afterthorough repair
Recall negative impact – Sales (-64M'); EBIT (-154M'); Net income (-119M');
Strong sales and EBIT performance in H&W segment due to dairies and fresh food divisions
Commodity inflationary pressures continue led by raw milk, sugar and energy
Strauss market share improved to 12.7% compared to 12.4% amidst a relatively weak Food & Beverage market
After the recall occurrence and near the report publication date, there has been a decline in S. Israel Confectionary market share. Yet, market share in other categories remained stable

Strauss Coffee

Strong sales momentum on reported growth of 32.6% and organic growth excluding FX of 35.8% in Q1
Sales growthwas led by Brazil(1) , up 77.2% in local currency, price increase and volume growth
Decrease in sales and EBIT in Russia and Ukraine as a result of the Russian invasion; The decrease is insignificant to the Group, and there has been gradual improvement in the operating results afterthe balance sheet date
Strong sales growth in most European countries in LC
Gross margins continue to erode in Q1 on elevated green coffee prices at a higher rate than selling prices increase
EBIT increases on higher sales offset by lower gross margins
AFH segment continued to improve across all geographies

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

International Dips & Spreads

On February 9, 2022, Sabra Board of Directors approved an adjustment plan at Sabra's plant in Virginia, USA
The plan increased costs and reduced production capacity ofthe plant
Sales declined 30.8% in Q1 in local currency mainly due to production challenges
Operating loss as a result ofthe decrease in sales alongwith fixed costs and one-time expenses
Sabra's market share is down to 45.8% due to inability to meet demand
Sabra's operating loss is expected to range between 15-17mm' USD in Q2 which includes one time expenses of 6-8mm' USD (Strauss' share at 50%)

Strauss Water

Strong sales momentum continues with a 7.5% increase for the first quarter
Installed base continues to increase in Israel
Haier Strauss Water (HSW) sales growth of 12.6% in local currency to reach ¥ 343m
Operating profit margin is up 13.8% vs 12.8% in the corresponding period due to HSW performance despite commodity inflationary pressure
Production in the newsite in China continues to expand

Growth and Innovation

Overall equity capital gains of NIS 8m during the quarter
Fair value of NIS 412m as of March 31st 2022 compared to 149m as of March 31st 2021
A new company joined the Kitchen portfolio to a total of 23 companies
During February The Kitchen FoodTech Hub won the Innovation Authority's tender for tech incubators for the second time

Financial Highlights Organic Excluding FX Non GAAP

Q1 2022

Q1'22 Organic Sales growth: 11.5%

Q1'22 Organic Gross Profit growth: -17.6%

Q1'22 Organic EBIT growth: -64.1%

Q1'22 Organic Net Income growth: -79%

Financial Highlights Reported Non GAAP

Q1 2022

Q1'22 Sales: NIS 2,272mm; growth: 10.2%

Q1'22 gross margins: 29.1% (down 1030 bps vs. Q1'21)

EBIT and EBIT margins: NIS 102mm (down -64.7%); 4.5% (down -950 bps vs. Q1'21)

Net income and net margins: NIS 43mm (down -79.2%); 1.9% (down -810 bps vs. Q1'21)

Q1 2022

Sales

Q1 2022 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

Q1 Sales Bridge NIS mm; Non-GAAP; Q1'21 to Q1' ²²

Gross Profit

Q1 2022 Gross Profit and Gross Margins

Q1 2021

Q1 EBIT Bridge NIS mm; Non-GAAP; Q1'21 to Q1'²²

Q1 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

Q1'21

'22/'21

EBITDA

Q1 2022 Consolidated EBITDA and EBITDA Margins

EBITDA

Q1'21

EBITDA and

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

Q1 Snapshot | BRL mm for 100% ownership and including inter-company sales

EBIT and EBIT Margins (*)

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

22 Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of March 31st , 2022. (*) EBIT before Other Expenses/ Income.

120

Sabra Q1 Snapshot \$ mm; Non-GAAP; for 100% share

As a result of plant adjustment plan

Net Income

Net Debt and Net Debt / EBITDA (LTM)

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

Q1 GAAP and Non-GAAP Financial Highlights, NIS mm ■9

	GAAP				Non-GAAP Adjusted
	Q1 2022	Q1 2021	% Chg.	Q1 2022	Q1 2021	% Chg.
Sales	1,511	1,509	0.1%	2,272	2,061	10.2%
Profit Gross	459	630	(27.2%)	662	812	(18.5%)
GPMargin	30.4%	41.7%		29.1%	39.4%
Profit Operating	81	273	(70.4%)	102	289	(64.7%)
EBITMargin	5.4%	18.1%		4.5%	14.0%
Profit (to Net SH)	14	203	(93.0%)	43	206	(79.2%)
NPMargin	0.9%	33.5%		1.9%	10.0%
Operating Flow Cash	(31)	209		(124)	178
Capex (1)	(59)	(48)		(78)	(65)
Net debt	1,780	1,631		2,107	1,843
WC Change (CF) in	(89)	(23)		(247)	(110)

Currencies

Change in average exchange rate (1 local

Strauss Israel Q1 2022 NIS mm Non-GAAP Financial Highlights

Strauss	Israel GAAP) (Non
	2022 Q1	2021 Q1	% Chg.
Revenue:
H&W	669	639	4.8%
F&I	306	335	(8.8%)
Total Revenue	975	974	0.1%

Total Profit Gross	252	391	(35.7%)
Gross Margins	25.8%	40.2%	(14.4%)

EBIT:
H&W	82	76	7.2%
Margins	12.2%	12.0%	0.2%
F&I	(97)	53	(285.9%)
Margins	(31.8%)	15.6%	(47.4%)
Total EBIT	(15)	129	(111.8%)
Margins	(1.6%)	13.2%	(14.8%)

EBITDA:
H&W	104	99	5.7%
Margins	15.6%	15.5%	0.1%
F&I	(79)	68	(216.6%)
Margins	(25.9%)	20.3%	(46.2%)
Total EBITDA	25	167	(85.0%)
Margins	2.6%	17.1%	(14.5%)

Sales excluding Confectionary recall effect =

EBIT excluding Confectionary recall effect =

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 Q1 2022 NIS mm Non-GAAP Financial Highlights

Strauss	Coffee (Non	GAAP)
	2022 Q1	2021 Q1	% Chg.
Revenue:
Israel	215	209	2.7%
International	781	542	44.2%
Total Revenue	996	751	32.6%

Total Profit Gross	295	272	8.6%
GrossMargins	29.6%	36.2%	(6.6%)

EBIT:
Israel	47	59	(19.4%)
Margins	21.8%	278%	(6.0%)
International	58	40	45.9%
Margins	7.5%	7.4%	0.1%
Total EBIT	105	99	6.9%
Margins	10.6%	13.1%	(2.5%)

EBITDA:
Israel	56	65	(14.5%)
Margins	25.9%	31.1%	(5.2%)
International	77	60	29.6%
Margins	9.8%	10.9%	(1.1%)
Total EBITDA	133	125	6.2%
Margins	15.5%	16.6%	(3.3%)

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

34 Source: Tres Cora^oesAlimentos S.A. Consolidated Interim Financial Statements as of March 31st, 2022.

e Strauss Coffee Q1 2022 NIS mm Non-GAAP Sales by Geography

Coffee Strauss Sales
			%	Change
	2022 Q1	2021 Q1	NIS	Organic change in local Currency
Israel	215	209	2.7%	2.7%
International:
Venture Tres Cora^oes Joint (Brazil) (1)	559	306	82.6%	77.2%
& Ukraine Russia	92	122	(24.7%)	(13.3%)
Poland	64	51	24.4%	39.1%
Romania	38	38	2.2%	14.1%
Serbia	28	25	11.7%	22.6%
Total International	781	542	44.2%	49.1%

Total Coffee	996	751	32.6%	35.8%

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

35 Source: Tres Cora^oesAlimentos S.A. Consolidated Interim Financial Statements as of March 31st, 2022.

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

e International Dips & Spreads

Strauss D&S Non-GAAP Financial Highlights ^| Q1 2022 NIS mm; 50% share

& Spreads GAAP) Dips (Non
	2022 Q1	Q1 2021	% Chg.
Revenue:
(50%) Sabra	97	144	(32.4%)
(50%) Obela	21	22	(3.5%)
Total Revenue	118	166	(28.6%)

EBIT:
(50%) Sabra	(15)	15	(194.9%)
Margins	(15.5%)	100%	(26.6%)
(50%) Obela	(2)	(2)	NM
Margins	NM	NM	NM
Total EBIT	(17)	13	NM
Margins	(14.3%)	8.1%	(22.4%)

EBITDA:
EBITDA Total	(10)	20	(151.9%)
Margins	(8.8%)	12.1%	(20.9%)