STRAUSS GROUP

UPDATED STRATEGY 2024-2026

SHAI BABAD / CEO & PRESIDENT, STRAUSS GROUP / MARCH 2024

EVERYTHING WE DO IS DRIVEN BY OUR PURPOSE OF

STRONG FUNDAMENTALS

PEOPLE	Highly devoted and capable people with a shared sense of pride & commitment
INFRASTRUCTURE	Widespread manufacturing facilities and a unique leveraged Go To Market
BRANDS	Strong well known and loved brands with consumer loyalty
PORTFOLIO	Growing, on-trend & diverse categories, geographies and partners

A S S E T S U N I Q U E C O M P E T I T I V E E D G E

WE PLAY IN THE RIGHT CATEGORIES SUPPORTED BY LEADING POWER BRANDS

4 * Market potential refers to Brazil in Coffee category, Israel in snacks and China in POU. Snacking Including dairy, sweets & salty snacks Source: Mintel, Storenext, Euromonitor ** including China sales

snacks, Dairy WE desserts STRIVE TO OFFER A HEALTHY PORTFOLIO FOR BALANCED NUTRITION

WE ARE IN THE MIDDLE OF A STRATEGIC JOURNEY

2023 PERFORMANCE DEMONSTRATES SOLID GROWTH BUT A DECLINE IN MARGINS vs ~11% EBIT MARGIN IN THE PAST

Net Sales	Gross profit	EBIT	Net profit	FCF
10,549m	3,383m	772m	439m	354m
Net Sales	Gross	EBIT	Net profit	FCF
+11%	32.1%	7.3%	4.2%	81.7%
Growth	Gross Margin	EBIT Margin	Net Margin	Cash conversion*

* Cash Conversion = FCF / NI THE OVERALL DECLINE IN PERFORMANCE NECESSITATES A REVIEW AND UPDATE OF STRATEGY

WHERE WE WANT TO GO

UPDATED STRATEGY – DOUBLE DOWN ON THE CORE

FUTURE READY & RESILIENT

HOW WE PLAN TO GET THERE

RENEW THE CORE

Optimize core categories & brands in Israel with a focus on snacking
Optimize and maintain R&G leadership in Brazil
Optimize and increase portfolio offering of water solutions

EXPAND & BUILD

Build plant -based solutions & Innovation around the core in Israel
Expand Non -R&G and beyond coffee in Brazil through M&As and organic growth
Grow China and enter new geographies in Water

TRANSFORM

Embark on a journey of Performance transformation
Maintain values while adopting a high performance culture
Optimize portfolio to focus on the core

STRATEGY WILL LEAD TO GROW CORE

STRONGER HOMEBASE BY 2026

Snacking company in Israel
Continuous improvement
High Tech & High Touch, fit to snacking portfolio
Improving engagement with communities, occasions & choices

We have a diverse brand portfolio that is highly snacking oriented - dairy, sweet & salty

WE PLAN TO BUILD PLANT BASED SOLUTIONS AS AN ENGINE FOR GROWTH IN ISRAEL

TASTE THE JOY OF UNIQUE CHOICE ALONG THE DAY THANKS TO A DIVERSIFIED PORTFOLIO IN ISRAEL

We provide unique taste with high quality that delivers joy to consumers throughout the whole day

LEAD COFFEE AND EXPAND BEYOND IN BRAZIL

	#1	Maintain No.1 position in Coffee
		Increase share of Non- R&G sales by 2026
	~200K	2026 Customers in Brazil, 3X vs 2021
	Growth and profitability	Continuous improvement

EXPAND NON-R&G AND BEYOND COFFEE THROUGH M&A AND ORGANIC GROWTH

28% Out of Total SG Sales*

Increase Non-R&G activities & Beyond coffee

DOUBLE DOWN ON PRODUCTIVITY TO INCREASE PROFITABILITY

28%

Out of Total SG Sales*

INTERNATIONAL WATER PLAYER

Leadership position in China & Israel Point of Use market by 2026

Geographic expansion

Plant the seeds for geographic expansion in 2026 and beyond

profitability

Continuous improvement Growth &

Multi-product portfolio Product portfolio

FUTURE READY AND RESILIENT – TRANSFORM THE COMPANY

Enhance values and pursue higher People performance-oriented culture
~300-400M	Productivity via Performance transformation as of 2026
5-7%	Yearly investment to drive technology, quality and operational excellence in the core
Rotation	Optimize portfolio through divestiture and M&A to align with strategy
~10%	Of portfolio will be turned around (underperforming - Sabra and Sweet Snacks)

WE WILL FOSTER A HIGH-PERFORMANCE CULTURE

FOCUS ON EXECUTION & ACCOUNTABILITY

Can-do approach
Disagree & commit
Strive for excellence
Fast decision making
Adaptive to changes

NURTURE TALENT STRENGTHEN OUR VALUES

Right people in the right places
Leadership for ongoing change
Upskilling and reskilling
Purpose-driven
Caring and inclusive
Employee experience for joy, belonging and inspiration

CULTURE TRANSFORMATION WILL BOOST PERFORMANCE

WE HAVE EMBARKED ON A TRANSFORMATION JOURNEY

A 360 PERFORMANCE PROGRAM TO ACHIEVE HIGHER PRODUCTIVITY & CAPABILITIES

WE PLAN TO INCREASE INVESTMENTS IN THE COMING 3 YEARS

THIS REQUIRES US TO OPTIMIZE THE PORTFOLIO FOR INCREASED FOCUS AND DOUBLING DOWN ON THE CORE

Limit investments in non-core activities

Divest underperforming activities that 3cannot be turned around

Turnaround underperforming activities, with a clear path to profitability

Maintain a clear strategic rationale for keeping non-core activities

WHERE WE STRIVE TO BE: GOALS FOR 2026

WE STRIVE TO HAVE A POSITIVE IMPACT ON SOCIETY AND ON THE ENVIRONMENT

		ENVIRONMENT	SOCIAL	GOVERNANCE
6 2 0 2	▪ ▪ HOME BASE	100% electricity from renewable sources by 2030 Reducing food waste	▪ Significant investments in a dedicated farmers fund ▪ Aiding Underrepresented communities ▪ Provide food to people in need	▪ One global sustainability agenda and targets ▪ Increase number of women
Y B S E I T I R O I	▪ INTERNATIONAL WATER	Reduce plastic by replacing single-use plastic bottles	▪ Water bars donation	in leadership positions ▪ Maintain top-tier Maala ESG rankings
R P G S E	BRAZIL COFFEE & BEYOND	▪ Optimize Packaging ▪ Expand energy efficiency ▪ Reduce operational Waste ▪ Reduce Gas Emissions	▪ Expand hiring of local suppliers ▪ Develop the Coffee Chain through impact initiatives

ACTION PLAN FOR 2026

C O M P E T I T I V E E D G E