Strauss Group Financial Results

Q3 2023 Earnings Presentation | November 30th , 2023

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.

Shai Babad

Group CEO

Our people on the frontlines

OUR Q3 PERFORMANCE

Net Sales	Gross profit	EBIT	Net profit
2,675m Net Sales	855m Gross	212m EBIT	120m Net Profit
+2.8% Organic Growth	32.0% Gross Margin	8.0% EBIT Margin	4.5% Net Margin
+7.3% Sales vs 22'	+14.7% Gross vs 22'	+93.2% EBIT Vs 22'	+236.7% Net Vs 22'

OUR YTD PERFORMANCE

44% Of Total

Strauss Israel – Recovery in progress in confectionery; All categories increase market share

Highlights

Confectionery back to market share at sweet snacks and regaining at tablets
Growth in Health & Wellness (Yoghurt, Dairy desserts & drinks)
New product launch Milky Bar, Pistachio, Alpro & new Olive oil squeezable package

Performance	division by millions Values in NIS
	Health & Wellness	& Fun Indulgence
Sales vs 2022	804m 728m	244m 143m
EBIT vs 2022	101m 66m	-8m -77m
%EBIT	12.5%	-3.1%

39% Of Total

Q3 UPDATE ^| BRAZIL

Highlights

New SAP platform
Protein Coffee launch (no lactose)
International coffee day activities across social media
Taking part in the biggest music festival in Sao Paulo
JDE & Marata deal pending approval

HSW Net income, 100% Of total shares
Source: CMM

YTD PERFORMANCE BY BUSINESSES

	olh6T ' Icrapl	f Stiouss" COFFEE	Sabra 1		Shu^^ 1
Sales 2022 Vs	3,068m 2,619m	3,784m 3,534m	387m 296m	613m 592m	7,854pm 7,041m
EBIT Vs 2022	279m -37m	280m 378m	22m -85m	66m 74m	591m 315m
%EBIT	9.1%	7.4%	5.7%	10.9%	7.5%

We have built a DETAILED PLAN for progress in 2023

TRANSFORM – ONE

We continue to build operational excellence

1

Consumer safety delivering high quality products through robust quality processes and culture

2

IT - Drive business growth through technology and data

3

Best-in-class Supply chain

Develop and empower our people

5

Lead Strauss' operational excellence across the entire value chain

PERFORM - PROFITABILITY

Boosting our productivity efforts

PUSHING AHEAD: OUR PLANS GOING FORWARD

Strategy review	Focus on improving profitability	Building growth engines
Portfolio optimization	Digital transformation progress	- Continue ONE focus operations, finance on excellence and HR

Q3 SUMMARY

SHAI BABAD | CEO STRAUSS GROUP

THANK YOU

Ariel Chetrit

Group CFO

Q3 Highlights – Strauss Group

Strauss Group

Strauss Group posts net sales growth of 7.3% led by growth in Israel, mainly due to the return of confectionary sales, a strong growth in dairy and by FX tailwinds
The group continues to face significant input inflation headwinds as green coffee, raw milk, sugar, cacao and packaging materials continue to rise, some to their peak level
To combat profitability erosion, the Group continued to implement further productivity and efficiency measures among others
The NIS continued to weaken against major and other currencies during the quarter adding to a total positive contribution to sales of NIS 109 million, led by the strengthening ofthe BRL which contributed NIS 127 million to sales, offset by the RUB, the only currency that weakened against the NIS and negatively impacted sales by NIS 65 million

21 (1)Storenext – includes barcoded products only

corresponding quarter, however, it posted a small operating loss in the quarter due to elevated input inflation, the weak NIS and increased expenses following the recall and new food safety measurements implemented
Fun & Indulgence segment posted significant growth in both sales and profits due to the recall in the
Confectionery market share continued to improve during the quarter and reached 24.5% in September although down slightly to 24% in October

• Pricing accounted for 6% of overall growth during the quarter

• Strauss Israel sales grew by 20.2% in the quarter led by Confectionery (due to the recall last year) and dairy

• Health & Wellness segment grew 10.4% and EBIT grew 53.4% to NIS 101 million in the third quarter

Strauss Israel

Strauss Coffee

Sales decreased by 2.3% in the third quarter, or 9% in local currencyy led by Russia and Brazil
Sales in Brazil declined 13.4% in local currency mainly due to lower volumes and lower selling prices; however, in NIS saleswere up 2.2% due to theweak NIS
Total Coffee EBIT declined 37.4% due to lower volumes and lower selling prices and higher expenses
R&G market share in Brazil reached 33.7% YTD, up from 32.5% in the corresponding period
Coffee Israel saleswere up 5.0% led by higher prices
Brazil, Russia & Ukraine and Poland sales declined during the quarter whilst sales in Israel, Romania and Serbia rose
Positive FX translation effects on sales, except forthe RUB, as a result oftheweak NIS

International Dips & Spreads

Sabra sales continued to improve from the previous quarter, up 19.4%, following the adjustments to the production plant last year
EBIT improved due to income from the insurance settlement following the dispute
Sabra's market share during the quarter was 38.2% compared to 31.0% in the corresponding quarter

Strauss Water

Strausswater sales rose 5.5% during the third quarter as the installed base continues to grow
However, EBIT declined 17.4% to NIS 21 million mainly due to increased input inflation and the NIS weakness which also eroded profitability that declined to 9.5% from 12.2% in the corresponding quarter
Haier Strauss Water (HSW) sales grew an impressive 22.3% in local currency and net income rose 21.9%

Growth and Innovation

The total fair value of the 25 portfolio companies of the Kitchen FoodTech Hub amounted to NIS 624 million at the end of the 3 rd quarter, compared to NIS 556 million as of September 30th 2022
The Kitchen Hub 2.0 made its second investment

Financial Highlights Reported Non GAAP

Q3'23 Sales: NIS 2,675mm; growth: 7.3%, Organic Sales growth: 2.8%

Q3'23 Gross margins: 32% (up 210 bps vs. Q3'22)

EBIT and EBIT margins: NIS 212mm (up 93.2%); 8% (up 360 bps vs. Q3'22)

Net income and net margins: NIS 120mm (up 236.7%); 4.5% (up 310 bps vs. Q3'22)

Q3 2023 YTD 2023

YTD 2023 Sales: NIS 7,854mm; growth: 11.5%, YTD Organic Sales growth: 7.5%

YTD 2023 Gross margins: 32.2% (up 240 bps vs. YTD 2022)

EBIT and EBIT margins: NIS 591mm (up 87.6%); 7.5% (up 300 bps vs. YTD 2022)

Net income and net margins: NIS 339mm (up 128.9%); 4.3% (up 220 bps vs. YTD 2022)

Q3 2023

Sales

Q3 2023 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

Q3 Sales Bridge NIS mm; Non-GAAP; Q3'22 to Q3' ²³

FX, Conf,& D&S

Gross Profit

Spreads

Q3 2023 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q3 EBIT Bridge NIS mm; Non-GAAP; Q3'22 to Q2'²³

Q3 2023 EBIT and EBIT Margins NIS mm; Non-GAAP; % Margin

EBITDA

3'22

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).

Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of September 30th , 2023.

96 97

Higher sales due to

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

-25 -20 -15 -10

Sales

Net Income

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

Net Income

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

		GAAP		Adjusted Non-GAAP
	2023 Q3	2022 Q3	% Chg.	2023 Q3	2022 Q3	% Chg.
Sales	1,746	1,608	8.6%	2,675	2,493	7.3%
Profit Gross	579	532	8.6%	855	746	14.7%
GPMargin	33.1%	33.1%		32.0%	29.9%
Operating Profit	156	84	85.0%	212	111	93.2%
EBITMargin	8.9%	5.2%		8.0%	4.4%
Net Profit (to SH)	80	27	197.6%	120	35	236.7%
NPMargin	4.6%	1.7%		4.5%	1.4%
Operating Flow Cash	211	42		300	75
Capex (1)	(134)	(91)		(155)	(112)
Net debt	2,416	2,123		2,880	2,517
Change WC (CF) in	69	(57)		77	(66)

YTD 2023

YTD 2023 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

YTD Sales Bridge NIS mm; Non-GAAP; YTD 2022 to YTD 2023

Gross Profit

2,531 1,089 1,044 399 32.2% 35.5% 27.6% 39.9% - 500 1,000 1,500 2,000 2,500 3,000 Overall Group Strauss Israel Strauss Coffee Spreads, Water & Other NIS mm; Non-GAAP; % Margin YTD 2022 GP & GM D = 432mm D = 331mm D = -2mm D = 104mm NIS 2,099 NIS 758 NIS 1,046 NIS 295 29.8% 28.9% 29.6% 33.2%

EBIT

YTD EBIT Bridge NIS mm; Non-GAAP; YTD 2022 to YTD 2023 315 694 591 ²⁸⁶ ¹¹⁶ ³⁰ (1 1) (1 2) (97) (7) (29) Operating Profit, YTD 2022 Translation Differences Effect FoodTech Equity Confectionary Dips & Spreads Operating Profit, YTD 2022 Organic inc. FX, Conf. Strauss Coffee Strauss Israel w.o confectionary Strauss Water HQ w.o FoodTech Equity Operating Profit, YTD 2023

& D&S

YTD 2023 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

YTD 2022

'23/'22

Organic

growth

excl. FX

EBIT &

EBIT %

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).

Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of September 30th , 2023.

sales and insurance

Higher sales due to

Net Income

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

Net Income

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

D&S

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

Non-GAAP	Highlights,
YTD	mm
and	Financial
GAAP	NIS

	GAAP			Adjusted Non-GAAP
	2023 YTD	2022 YTD	% Chg.	2023 YTD	2022 YTD	% Chg.
Sales	5,090	4,540	12.1%	7,854	7,041	11.5%
Profit Gross	1,826	1,493	22.3%	2,531	2,099	20.6%
GPMargin	35.9%	32.9%		32.2%	29.8%
Operating Profit	561	241	132.7%	591	315	87.6%
EBITMargin	11.0%	5.3%		7.5%	4.5%
Net Profit (to SH)	384	96	299.8%	339	148	128.9%
NPMargin	7.5%	2.1%		4.3%	2.1%
Operating Cash Flow	215	131		135	91
Capex (1)	(341)	(228)		(407)	(291)
Net debt	2,416	2,123		2,880	2,517
Change WC (CF) in	(281)	(160)		(541)	(351)

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 2023 NIS mm

		Strauss Israel (Non	GAAP)
	2023 Q3	2022 Q3	Chg. %	2023 YTD	2022 YTD	Chg. %
Revenue:
H&W	804	728	10.4%	2,301	2,069	11.2%
F&I	244	143	70.2%	767	550	39.4%
Total Revenue	1,048	871	20.2%	3,068	2,619	17.1%
Total Profit Gross	374	253	47.9%	1,089	758	43.7%
GrossMargins	35.7%	29.0%	6.7%	35.5%	28.9%	6.6%
EBIT:
H&W	101	66	53.4%	263	212	23.9%
Margins	12.5%	9.0%	3.5%	11.4%	10.2%	1.2%
F&I	(8)	(77)	90.0%	16	(249)	106.4%
Margins	(3.1%)	(53.3%)	50.1%	2.1%	(45.2%)	47.3%
Total EBIT	93	(11)	966.2%	279	(37)	857.3%
Margins	8.9%	(1.2%)	10.1%	9.1%	(1.4%)	10.5%
EBITDA:
H&W	126	89	42.0%	336	281	19.7%
Margins	15.6%	12.2%	3.5%	14.6%	13.6%	1.0%
F&I	10	(59)	118.3%	70	(197)	135.5%
Margins	4.4%	(40.7%)	45.0%	9.1%	(35.8%)	44.9%
Total EBITDA	136	30	349.8%	406	84	383.9%
Margins	13.0%	3.5%	9.5%	13.2%	3.2%	10.0%

Strauss Israel

Target Milk Prices| 2012-2023 (ILS per Liter)

London Sugar Historical & Futures Prices | 2017-2023 (\$\T)

London Cocoa Historical & Futures Prices | 2017-2023 (GBP\T)

Strauss Coffee Q3 and YTD 2023 NIS mm Non-GAAP Financial Highlights

	Strauss	Coffee (Non	GAAP)
	2023 Q3	2022 Q3	% Chg.	2023 YTD	2022 YTD	% Chg.
Revenue:
Israel	210	200	5.0%	617	595	3.7%
International	1,068	1,108	(3.6%)	3,167	2,939	7.7%
Total Revenue	1,278	1,308	(2.3%)	3,784	3,534	7.1%
Total Profit Gross	345	391	(11.6%)	1,044	1,046	(0.2%)
GrossMargins	27.0%	29.8%	(2.8%)	27.6%	29.6%	(2.0%)
EBIT:
Israel	30	24	29.5%	83	91	(8.9%)
Margins	14.6%	11.8%	2.8%	13.5%	15.4%	(1.9%)
International	60	122	(50.4%)	197	287	(31.2%)
Margins	5.6%	10.9%	(5.3%)	6.2%	9.8%	(3.5%)
Total EBIT	90	146	(37.4%)	280	378	(25.8%)
Margins	7.1%	11.1%	(4.0%)	7.4%	10.7%	(3.3%)
EBITDA:
Israel	41	35	20.6%	116	122	(4.8%)
Margins	19.8%	17.3%	2.5%	18.9%	20.6%	(1.7%)
International	84	144	(41.3%)	266	349	(23.6%)
Margins	7.9%	12.9%	(5.0%)	8.4%	11.8%	(3.4%)
Total EBITDA	125	179	(29.2%)	382	471	(18.7%)
Margins	9.9%	13.6%	(3.7%)	10.1%	13.3%	(3.2%)

Note: (1) Três Corações jointventure (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, 2023

Strauss Coffee Non-GAAP Sales by Geography Q3 and YTD 2023 NIS mm

Coffee Strauss Sales
			Change %				Change %
	2023 Q3	2022 Q3	NIS	Local urrency	2023 YTD	2022 YTD	NIS	Local Currency
Israel	210	200	5.0%	5.0%	617	595	3.7%	3.7%
International:
Venture Três Corações Joint (Brazil) (1)	713	697	2.2%	(13.4%)	2,117	1,961	7.9%	(3.7%)
& Ukraine Russia	165	259	(36.2%)	(15.8%)	501	542	(7.6%)	6.5%
Poland	90	73	22.3%	(2.1%)	259	208	24.2%	8.5%
Romania	58	48	22.1%	3.4%	169	134	26.7%	12.8%
Serbia	42	31	34.8%	13.2%	121	94	28.5%	14.2%
Total International	1,068	1,108	(3.6%)	(11.4%)	3,167	2,939	7.7%	(0.2%)
Total Coffee	1,278	1,308	(2.3%)	(9.0%)	3,784	3,534	7.1%	0.4%

Note: (1) Três Corações jointventure (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, 2023

YTD 2023 Strauss Coffee EBIT & EBIT Margins

Arabica Historical & Futures Prices | 2017-2023 (C\Lbs.)

Robusta Historical & Futures Prices | 2017-2023 (\$\T)

International Dips & Spreads

Strauss D&S Non-GAAP Financial Highlights ^| Q3 and YTD 2023 NIS mm; 50% share

	Dips	& Spreads	(Non GAAP)
	2023 Q3	2022 Q3	% Chg.	2023 YTD	2022 YTD	% Chg.
Revenue:
(50%) Sabra	108	82	31.4%	329	233	41.0%
(50%) Obela	19	22	(6.6%)	59	63	(6.1%)
Total Revenue	127	104	23.6%	387	296	31.1%
EBIT:
(50%) Sabra	35	(36)	(199.0%)	28	(79)	136.2%
Margins	32.4%	(43.0%)	75.4%	8.6%	(33.7%)	42.3%
Obela (50%)	(3)	(1)	NM	(6)	(6)	NM
Margins	NM	NM	NM	NM	NM	NM
Total EBIT	32	(37)	NM	22	(85)	126.0%
Margins	25.2%	(35.4%)	60.5%	5.7%	(28.7%)	34.4%
EBITDA:
Total EBITDA	39	(29)	235.6%	43	(61)	171.2%
Margins	30.3%	(27.6%)	58.0%	11.1%	(20.5%)	31.7%