Strauss Group Financial Results

Q1 2023 Earnings Presentation | May 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

We have built a DETAILED PLAN for success in 2023

Trust

Productivity

OUR Q1 FINANCIAL PERFORMANCE

Group Sales	Organic growth	Gross profit	EBIT
(NIS)	(%)	(%)	(NIS & % margin)
2,554	+7.9%	837 32.8%	208 (8.1%)
2,272	+11.5%	662	102
LY		(29.1%)	(4.5%)
NET Profit	OCF	FCF	CAPEX, Net
(NIS)	(NIS)	(NIS)	(NIS & %)
134 (5.3%)	-226	-300	74 (3.3%)
LY 43 (1.9%)	-124	-202	78 (3.4%)

NIS 1,049m revenues and strong growth with 7.6% sales growth in Q1 2023

Price adjustments

in Israel in several categories

Input inflation

continues to erode profitability by 40m NIS

Confectionery

recovery while gaining back market share of 21.6%

NIS 1,189m revenues and excellent growth with 10% organic sales growth in Q1 2023

Brazil

continues solid momentum, increase MS to 33.6% in R&G

Israel

Gross margins continued to erode due to higher green coffee prices and other input inflation CEE with net sales growth in all countries, alongside improvement in EBIT margin

NIS 188m revenues and a 2.9% growth in Q1 2023

Growth in install base in Israel

HSW China with solid growth (8.7%) mainly due to COVID recovery Second manufacturing facility in China

Boosting Strategic partnership alignment together with Culligan

SABRA & OBELA

NIS 127m revenue in Q1 2023 (-2.4%) and an EBIT of (-1)m

Operational recovery continues

Regaining Market Share with 38.8% MS in April

#1 branded hummus company in the US

Obela divestiture in western Europe

Promoting future growth engines

Cutting edge innovation Local infrastructure

• Startup #24 – Meatologic

Plant Based project

• Continuing the building of a new plant-based factory

Global infrastructure

Second manufacturing site in China

• Second investment together with Haier Strauss Water

What have we accomplished so far

Our RTP progress in Q1

Culligan agreement

Establishing Strauss NEO

Internal leadership appointments

Obela divestiture

Serbia coffee deal Implementing #ONE

Focus on Productivit y

Q1 2023

Ariel Chetrit

Group CFO

Q1 Highlights – Strauss Group

• Strauss Group posts net sales growth of 12.4% (+7.9% organic excluding FX). Growth was led by coffee Strauss Group

(mainly CEE and Israel); and H&W segment due to price increase in December and volume growth. The growth is driven by a volume increase of 3.2% and price increase of 5.0%; FX contributed 4.2% to growth
The group continues to experience significant input inflation, mainly green coffee and raw milk, which erodes profitability. In order to improve profitability, the Group is focusing on long term productivity measures
The group continues to execute on its business strategy which includes the new partnership in Strauss WaterWith Culligan in UK and the divestment ofthe Dips and Spreads operations in Europe
NIS weakens versus major currencies: mainly BRL, RUB and USD which lead to a contribution of NIS96 million to sales during the quarter

Strauss Israel sales increased by 7.6% following volume growth across all categories, mainly in dairies and aswell as price increaseswhichwere announced in December
Growth split by volume increase of 3.8% and price increase of 3.8%
Input inflation impact is estimated at approximately NIS40 million in Israel alone, primarily due to raw milk prices which were up 17.5% (price 2.49 vs 2.12)
Fun & Indulgence segment posted an operating profit of NIS 24 million following the Confectionery recovery
Confectionery experienced a rapid return to shelves and increased market share from trough (21.6% in Q1 23 vs. 28.7% in Q1 22) (1)

Strauss Coffee

Net sales increase by 19.4% in the first quarter as all geographies posted positive growth rates
Positive FX translation effects on sales due to weaker NIS, mainly as a result of the strengthening of the BRL and the RUB
In Brazil R&G market share was up 0.5% to 33.6% as market leading position is maintained and strengthened
In Israel gross margins continued to erode due to higher green coffee prices and otherinput inflation
CEE posted a strong set of results in both sales and operating profit due to higher selling prices in all geographies, volume increases and positive FX translation effects, mainly as a result of the strengthening ofthe RUB against the NIS

(1) Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C) 15

International Dips & Spreads

Whilst Sabra returned to full production in Q4 2022, returning to the shelves is proving more challenging
Sabra sales in USD in decreased by 1.3%
Sabra posted a modest market share gain versus the trough at the end of May, reaching 36.4% for the quarter and 38.8% in April
Sabra is still the #1 branded hummus company

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

Q1 Highlights

Strauss Water

Sales grew2.9% in the first quarter mainly due to a higherinstalled base
In Israel the installed base continued to increase despite slower growth rate due to overall macro environment
Operating profit and profitability in Israel eroded due to input inflation and theweakening ofthe NIS
In January 23 Strauss Water announced a new partnership with Culligan International, a global drinking water solutions and services company, in accordance with Strauss' strategy to enhance globalwater operations
Haier Strauss Water(HSW) sales grewby 8.7% in local currency to reach 373m ¥ (100% share)

Growth and Innovation

Equity loss of NIS 8.3m during the first quarter
Fair value increased to NIS 582 million as of March 31st, 2023, compared to 412 million as of March 31st , 2022

Financial Highlights Reported Non GAAP

Q1 2023

Q1'23 Sales: NIS 2,554mm; growth: 12.4%, Organic Sales growth: 7.9%

Q1'23 Gross margins: 32.8% (up 370 bps vs. Q1'22)

EBIT and EBIT margins: NIS 208mm (up 104.2%); 8.1% (up 360 bps vs. Q1'22)

Net income and net margins: NIS 134mm (up 213.4%); 5.3% (up 340 bps vs. Q1'22)

Q1 2023

Sales

Q1 2023 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

Q1 Sales Bridge NIS mm; Non-GAAP; Q1'22 to Q1' ²³

D&S

Gross Profit

Spreads

Q1 2023 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q1 EBIT Bridge NIS mm; Non-GAAP; Q1'22 to Q1'²³

Q1 2023 EBIT and EBIT Margins NIS mm; Non-GAAP; % Margin

Q1'22

'23/'22

EBIT &

EBITDA

Q1'22

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

Q1 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 March 31st , 2023.

-15

-10

- 5 -

Sales

EBIT and EBIT Margins

11 10

¹⁰¹ ⁸⁸

11.0% 11.0%

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

-10

Q1'20 Q1'21 Q1'22 Q1'23

-15.5%

-1.3%

Low sales compared to previous years due to difficulty in recovering

-1 -1.3% 94.2% 61 60 Q1'20 Q1'21 Q1'22 Q1'23 Lower manufacturing costs and overhead hummus sales

Net Income

Q1 Net Profit (attributed to the Company's shareholders), Net Margins and EPS

Net Income

Q1 Net Profit (attributed to the Company's shareholders) Bridge

Net Debt and Net Debt / EBITDA (LTM)

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

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

	GAAP				Adjusted Non-GAAP
	2023 Q1	2022 Q1	Chg. %	2023 Q1	2022 Q1
Sales	1,713	1,511	13.4%	2,554	2,272
Profit Gross	660	459	44.1%	837	662
GPMargin	38.6%	30.4%		32.8%	29.1%
Operating Profit	246	81	205.0%	208	102
EBITMargin	14.4%	5.4%		8.1%	4.5%
Profit Net (to SH)	231	14	1523.0%	134	43
NPMargin	13.5%	0.9%		5.3%	1.9%
Operating Cash Flow	(55)	(31)		(226)	(124)
Capex (1)	(56)	(59)		(74)	(77)
Net debt	2,358	1,780		2,787	2,107
Change WC (CF) in	(266)	(89)		(489)	(247)

Q1 GAAP and Non-GAAP Financial Highlights, NIS mm

Currencies

Strauss Israel Non-GAAP Financial Highlights Q1 2023 NIS mm

	Strauss Israel (Non GAAP)
	Q1 2023	Q1 2022	% Chg.
Revenue:
H&W	743	669	11.1%
F&I	306	306	(0.0%)
Total Revenue	1,049	975	7.6%

Total Gross Profit	369	252	46.4%
Gross Margins	35 1%	25 8%	9 3%

EBIT:
H&W	85	82	3.5%
Margins	4% 11	2% 12	(0 8%)
F&I	24	(97)	125.0%
Margins	7 9%	(31 8%)	39 7%
Total EBIT	109	(15)	815.5%
Margins	10 4%	(1 6%)	12 0%

EBITDA:
H&W	109	104	4.3%
Margins	14 6%	15 6%	(1 0%)
F&I	42	(79)	153.0%
Margins	13 8%	(25 9%)	39 7%
Total EBITDA	151	25	502.0%
36 Margins	4% 14	6% 2	8% 11

Sales growth w/o Confectionery ⁼

EBIT growth w/o Confectionery ⁼

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

Source: Israeli Dairy Board (Production and Marketing) website

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

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

Strauss Coffee Q1 and NIS mm Non-GAAP Financial Highlights

	Coffee Strauss (Non	GAAP)
	2023 Q1	2022 Q1	% Chg.
Revenue:
Israel	238	215	10.6%
International	951	781	21.8%
Total Revenue	1,189	996	19.4%

Total Profit Gross	342	295	16.1%
GrossMargins	28.8%	29.6%	(0.8%)

EBIT:
Israel	39	47	(17.4%)
Margins	16.3%	21.8%	(5.5%)
International	60	58	2.3%
Margins	6.3%	7.5%	(1.2%)
Total EBIT	99	105	(6.2%)
Margins	8.3%	10.6%	(2.3%)

EBITDA:
Israel	50	56	(10.3%)
Margins	21.0%	25.9%	(4.9%)
International	82	77	6.2%
Margins	8.6%	9.8%	(1.2%)
Total EBITDA	132	133	(0.6%)
Margins	11.1%	13.3%	(2.2%)

Note: (1) Três Coraçõe

42 Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of March 31st, 2023.

Strauss Coffee Non-GAAP Sales by Geography Q1 and NIS mm

Coffee Strauss Sales
			Change %
	2023 Q1	2022 Q1	NIS	Local Currency
Israel	238	215	10.6%	10.6%
International:
Corações Venture Três Joint (Brazil) (1)	621	559	11.1%	0.9%
Russia Ukraine &	165	92	79.3%	49.9%
Poland	79	64	24.4%	18.8%
Romania	51	38	31.3%	23.4%
Serbia	35	28	24.8%	17.5%
Total International	951	781	21.8%	9.8%

Coffee Total	1,189	996	19.4%	10.0%

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

43 Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of March 31st, 2023.

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

Source: Bloomberg

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

Source: Bloomberg

International Dips & Spreads

Strauss D&S Non-GAAP Financial Highlights ^| Q1 2023 NIS mm; 50% share

& Spreads (Non GAAP) Dips
	2023 Q1	2022 Q1	% Chg.
Revenue:
(50%) Sabra	106	97	8.6%
(50%) Obela	21	21	(0.3%)
Total Revenue	127	118	7.0%

EBIT:
(50%) Sabra	(1)	(15)	114.1%
Margins	(1.3%)	(15.5%)	14.2%
(50%) Obela	0	(2)	NM
Margins	NM	NM	NM
Total EBIT	(1)	(17)	NM
Margins	(0.8%)	(14.3%)	13.5%

EBITDA:
Total EBITDA	7	(10)	162.5%
Margins	5.1%	(8.8%)	13.9%