Strauss Group Financial Results

Q3 2024 Earnings Presentation | November 25th , 2024

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

CONTINUING OUR COMMITMENT TO SUPPORT THE ISRAELI ECO-SYSTEM SPECIFICALLY IN THE NORTH

Participating in the annual Latet donation day – we gave a leading donation to the event, which has helped raise more than 200k food donations for the holidays. We gave over 30k food packages

Supporting the Israeli who live in the North

Wrapping up the first program of Lapidot for orthodox women

Annual volunteering week

2,200 Food donations for Rosh Hashanah

We have announced selling our holdings in Sabra and Obela, to PepsiCo for approximately NIS 900 million. ⁵

WE ARE PUSHING OUR CONSUMER CENTRICITY EFFORTS

C O M M U N I C A T I O N M O V E S

M A I N P R O D U C T S I N N O V A T I O N

OUR Q3 PERFORMANCE

Net Sales	Gross profit	EBIT	Net profit
2 991m , Sales Net	911m Gross	223m EBIT	102m Profit Net
4% +15 Organic Growth	5% 30 Gross Margin	4% 7 EBIT Margin	4% 3 Net Margin
8% 11 Sales 23' vs	5% 6 Gross 23' vs	2% 4 EBIT 23' vs	4% 15 - Net 23' vs

OUR YTD PERFORMANCE

Net Sales	Gross profit	EBIT	Net profit
8 334m 8 334m , , Sales Net Sales Net	2 626m 2 626m , , Gross Gross	578m 578m EBIT EBIT	344m 344m Profit Net Profit Net
9% +6 +6 9% Growth Organic Growth Organic	5% 31 31 5% Gross Margin Gross Margin	9% 6 6 9% EBIT Margin EBIT Margin	1% 4 1% 4 Net Margin Net Margin
1% 6 1% 6 Sales 23' Sales 23' vs vs	8% 3 8% 3 Gross 23' Gross 23' vs vs	3% 2 3% 2 - - 23' EBIT EBIT 23' vs vs	3% 1 3% 1 23' Net Net 23' vs vs

Highlights Performance by division

Fun and Indulgence recovery continues with top line growth of 32.6%.
Coffee Israel sales rise 5.4%
Health & Wellness sales growth by

		Values in NIS millions
Fun and Indulgence recovery continues with top line growth of 32.6%. Coffee Israel sales rise 5.4%		Health & Wellness	Fun & Indulgence	Coffee Israel
Health & Wellness sales growth by 2.8% and improvement in margin.	Sales vs 2023	827m 804m	323m 244m	221m 210m
	EBIT vs 2023	120m 101m	9m -8m	29m 30m
	%EBIT Vs 2023	14.5% 12.5%	2.8% -3.1%	12.9% 14.6%

In 2023 between H&W and F&I segments was reclassification of the Energy category. Excluding this change, H&W sales are up 5.2%.

FUN AND INDULEGENCE TURNAROUND PROGRESSING

Market Share Confectionery up to 28.1%

operational excellence.

Highlights

Revenues in Brazil were up 16% during the quarter in local currency.
EBIT in Brazil up by 87% compared to Q3 2023 in local currency.

Total Strauss water

• Sales rise 1.6% on higher installed base.

Strauss water – Continued growth and profit

• EBIT improvement of 23.3%.

China

Sales growth of 6.5%.
Net income improved by 47.4%.

חשבתי אולי להרים כוס מים

* HSW 100% Of total shares

* * Israel including UK and ROW; Israel EBIT includes net income from HSW proportion

* * * EBIT for Strauss Water; Net for HSW

Q3 2023 Q3 2024

WHERE WE WANT TO GO

UPDATED STRATEGY – DOUBLE DOWN ON THE CORE

FUTURE READY & RESILIENT

Ariel Chetrit

Group CFO

Q3 Highlights – Strauss Group

Strauss Group

Strauss Group Net sales growth is 11.8% (+15.4% organic excluding FX effect). Growth is led by Israel F&I following the confectionery strong recovery, volumes growth and price increases in Coffee international and a solid performance of Strauss Water.
NIS strengthened against major currencies during the quarter mainly against the BRL and the UAH, negatively impacting sales by NIS -85 million.
During the quarter Strauss Group continues to face significant input inflation, especially on Cocoa +123% and green coffee (both in Robusta +83% and Arabica +58%).

Q3 Highlights

Strauss Israel

Strauss Israel net sales increased by 9.0% following Confectionery market share recovery and pricing changes.
H&W segment Sales are 2.8% higher vs LY. In 2023 between H&W and F&I segments was reclassification of the Energy category. Excluding this change, H&W sales are up 5.2%.
H&W EBIT increased to 14.5% vs Q3'23 level of 12.5% mainly due to price increase and Productivity.
F&I Sales grew by 32.6% mainly due to Confectionery continuous recovery. EBIT margin is growing up to 2.8% vs Q3'23 level of -3.1%.
Coffee Israel Sales are 5.4% higher vs PYwhich is mainly driven by performance and price increase.

Q3 Highlights

Coffee International

Coffee international saleswere up 28.0% (without FX effect) during the third quarter.
Sales in Brazil are up by 43.5% in local currency to 1,336 mm BRL.
R&G market share in Brazil declined to 32.7% from 33.7% last year.
Russia posted sales growth of 12.1% in local currency, Ukraine sales grew by 17.2%, Poland sales grew by 10.2%, Romania sales grewby 27%.

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

Q3 Highlights

Strauss Water
Sales grew 1.4% (w/o FX effect) in the third quarter mainly due to higher install base and appliances sold.
Haier Strauss Water (HSW) sales grew 2.0% in local currency to reach 407m ¥ (100% share), mainly due to betterMix and Market Share increase.
Profitability betterthan LY , 7.8% vs 7% in SW-IL due to mix and productivity.
On August, the board of directors of HSW approved a dividend distribution to shareholders. In September 2024, an amount of NIS 29 million was received, net of tax. Furthermore, the board approved the prepayment of a shareholders' loan of 53 million NIS to Strauss Water. The shareholders' loanwas paid off in November 2024.

Financial Highlights Reported Non GAAP

Q3 2024

Sales growth: 11.8%, Organic Sales growth: 15.4% Q3'24 Sales: NIS 2,991mm

Q3'24 Gross margin 30.5% (-150 bps down vs. Q3'23)

NIS 223mm (up 4.2%); 7.4% (-60 bps down vs. Q3'23) EBIT and EBIT margins:

NIS 102mm (down -15.4%); 3.4% (-110 bps down vs. Q3'23) Net income and Net margins:

YTD 2024

YTD'24 Sales: NIS 8,334mm Sales growth: 6.1%, Organic Sales growth: 6.9%

YTD'24 Gross margin 31.5% (-70 bps down vs. YTD'23)

NIS 578mm (down -2.3%); 6.9% (-60 bps down vs. YTD'23) EBIT and EBIT margins:

NIS 344mm (up 1.3%); 4.1% (-20 bps down vs. YTD'23) Net income and Net margins:

Q3 2024

Sales NIS mm; Non-GAAP

21 * Category reclassification - Strauss Israel includes Coffee Israel as well as coffee HQ related cost allocations

Q3 Sales Bridge NIS mm; Non-GAAP; Q3'23 to Q3'24

Gross Profit NIS mm; Non-GAAP

Q3 2024 Gross Profit by Segments

NIS mm; Non-GAAP; % Margin

EBIT and EBIT Margins NIS mm; Non-GAAP

Q3 EBIT Bridge NIS mm; Non-GAAP; Q3'23 to Q3'²⁴

Q3 2024 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

Q3 '23

'24/'23

Organic

EBIT &

EBITDA and EBITDA margins NIS mm; Non-GAAP

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

Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of September 30th , 2024.

(*) EBIT before Other Expenses/ Income.

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

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

Sales

EBIT and EBIT Margins

Net Income NIS mm; Non-GAAP (attributed to the Company's shareholders)

Net Debt and Net Debt / EBITDA (LTM)

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

GPMargin 34.9% 33.1% 30.5% 32.0%

Change in WC (CF) (15) 69 (214) 77

Operating Profit	216	156	39.3%	223	212	4.2%
EBITMargin	11.6%	8.9%		7.4%	8.0%
Profit (to Net SH)	99	80	23.7%	102	120	(15.4%)
NPMargin	5.3%	4.6%		3.4%	4.5%
Operating Flow Cash	180	211		59	300
Capex (1)	(132)	(134)		(157)	(155)
Net debt	2,551	2,416		3,286	2,880

Q3 GAAP and Non-GAAP Financial Highlights, NIS mm

Sales 1,873 1,746 7.3% 2,991 2,675 11.8%

Gross Profit 653 579 12.9% 911 855 6.5%

GAAP Adjusted Non-GAAP

Q3 2024 Q3 2023 % Chg. Q3 2024 Q3 2023 % Chg.

YTD 2024

Sales NIS mm; Non-GAAP

36 * Category reclassification - Strauss Israel includes Coffee Israel as well as coffee HQ related cost allocations

YTD Sales Bridge NIS mm; Non-GAAP; YTD'23 to YTD' 24

Gross Profit NIS mm; Non-GAAP

YTD 2024 Gross Profit by Segments

NIS mm; Non-GAAP; % Margin

EBIT and EBIT Margins NIS mm; Non-GAAP

591 583 578 46 9 (8) (23) (37) YTD EBIT Bridge NIS mm; Non-GAAP; YTD'23 to YTD'²⁴ Sabra 48M-one time insurance payment in 2023

Strauss Israel Coffee

International

Strauss Water Other EBIT YTD'24

* Strauss Israel includes all results of Coffee Israel including HQ costs allocations

EBIT YTD'23 Oragnic w/o FX

Differences

EBIT YTD'23 Translation

YTD 2024 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

YTD '23

'24/'23

EBIT &

EBITDA and EBITDA margins NIS mm; Non-GAAP

EBITDA Growth excl. FX ⁼

EBITDA and EBITDA margins NIS mm; Non-GAAP

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 30st , 2024.

(*) EBIT before Other Expenses/ Income.

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

Sales

EBIT and EBIT Margins

Net Income NIS mm; Non-GAAP (attributed to the Company's shareholders)

GAAP Adjusted Non-GAAP

	2024 YTD	2023 YTD	% Chg.	2024 YTD	2023 YTD	% Chg.
Sales	5,300	5,090	4.1%	8,334	7,854	6.1%
Profit Gross	1,801	1,826	(1.3%)	2,626	2,531	3.8%
GPMargin	34.0%	35.9%		31.5%	32.2%
Operating Profit	484	561	(13.7%)	578	591	(2.3%)
EBITMargin	9.1%	11.0%		6.9%	7.5%
Net Profit (to SH)	232	384	(39.5%)	344	339	1.3%
NPMargin	4.4%	7.5%		4.1%	4.3%
Operating Flow Cash	339	215		(41)	135
Capex (1)	(378)	(341)		(461)	(407)
Net debt	2,551	2,416		3,286	2,880
Change WC in (CF)	(113)	(281)		(677)	(541)

YTD GAAP and Non-GAAP Financial Highlights, NIS mm

Currencies

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

Strauss Israel Non-GAAP Financial Highlights Q3 and YTD 2024 NIS mm

	Strauss Israel (Non GAAP)
	2024 Q3	2023 Q3	% Chg.	2024 YTD	2023 YTD	% Chg.
Revenue:
H&W	827	804	2.8%	2,312	2,301	0.5%
F&I	323	244	32.6%	955	767	24.6%
Coffee Israel	221	210	5.4%	625	617	1.4%
Total Revenue	1,371	1,258	9.0%	3,892	3,685	5.6%

Total Profit Gross	499	477	4.6%	1,428	1,381	3.4%
GrossMargins	36.4%	38.0%	(1.5%)	36.7%	37.5%	(0.8%)
EBIT:
H&W	120	101	19.5%	286	263	8.9%
Margins	14.5%	12.5%	2.0%	12.4%	11.4%	1.0%
F&I	9	(8)	219.5%	39	16	146.7%
Margins	2.8%	(3.1%)	6.0%	4.1%	2.1%	2.0%
Coffee Israel	29	30	(6.8%)	83	83	(0.6%)
Margins	12.9%	14.6%	(1.7%)	13.2%	13.5%	(0.3%)
Total EBIT	158	123	27.8%	408	362	12.8%
Margins	11.5%	9.8%	1.7%	10.5%	9.8%	0.7%

EBITDA: H&W	145	126	15.9%	361	336	7.6%
Margins	17.6%	15.6%	2.0%	15.6%	14.6%	1.0%
F&I	29	10	172.2%	98	70	39.9%
Margins	9.0%	4.4%	4.6%	10.2%	9.1%	1.1%
Coffee Israel	39	41	(7.5%)	114	116	(2.0%)
	17.4%	19.8%	(2.4%)	18.2%	18.9%	(0.6%)
Margins

Total EBITDA 213 177 19.8% 573 522 9.8% Margins 12.9% 14.6% (1.7%) 13.2% 13.5% (0.3%)

(1) Energy snacks were reclassified in Q1 24 to F&I, previously part of H&W

Strauss Israel Sales; NIS mm; Non-GAAP

Strauss Israel EBIT and EBIT Margins; NIS mm; Non-GAAP

Target Milk Prices| 2012-2024 (ILS per Liter)

Source: Israeli Dairy Board (Production and Marketing) website

London Sugar Historical & Futures Prices | 2017-2024 (\$\T)

London Cocoa Historical & Futures Prices | 2017-2024 (GBP\T)

Strauss Coffee Intl. Non-GAAP Financial Highlights Q3 and YTD 2024 NIS mm

	Strauss	Coffee International	(Non	GAAP)
	2024 Q3	2023 Q3	% Chg.	2024 YTD	2023 YTD	% Chg.
Total Revenue	1,259	1,068	17.8%	3,418	3,167	7.9%

Total Profit Gross	260	242	7.8%	752	752	0.1%
GrossMargins	20.7%	22.6%	(1.9%)	22.0%	23.7%	(1.7%)
EBIT:
Total EBIT	68	60	12.6%	167	197	(15.2%)
Margins	5.4%	5.6%	(0.2%)	4.9%	6.2%	(1.3%)
EBITDA:
Total EBITDA	91	84	7.6%	236	266	(11.3%)
Margins	7.2%	9.9%	(2.7%)	6.9%	8.4%	(1.5%)

Strauss Coffee Intl. Non-GAAP Sales by Geography Q3 and YTD 2024 NIS mm

International Coffee Sales
	2024 Q3	2023 Q3	Change %				Change %
			NIS	Local Currency	2024 YTD	2023 YTD	NIS	Local Currency
Venture Três Corações Joint (1) (Brazil)	894	713	25.3%	43.5%	2,381	2,117	12.5%	16.6%
Russia	148	126	16.9%	12.1%	386	395	(2.4%)	4.4%
Ukraine	40	39	3.3%	17.2%	114	106	7.6%	15.4%
Poland	104	90	15.9%	10.2%	309	259	19.2%	10.2%
Romania	73	58	26.7%	27.0%	178	169	5.2%	3.7%
Serbia	--	42	(100.0%)	(100.0%)	21	121	(82.8%)	(82.9%)
Other	--	--			29	--
Total International	1,259	1,068	17.8%	28.0%	3,418	3,167	7.9%	10.3%