Strauss Group — Investor Presentation 2025

May 28, 2025

STRAUSS GROUP Q1-2025

Earnings Presentation 28 MAY 2025

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 circumstancesthat may occur after this presentation was prepared.

Financial data is rounded to NIS millions. Percentages changes were calculated on the basis of the exact figures in NIS thousands. All changes are on a YoY basis, unless indicated otherwise.

Disclaimer GAAP to Non-GAAP Reconciliations

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), Strauss Frito-Lay Ltd. (a 50%/50% JV with PepsiCo Frito-Lay in Israel) and until the completion of the sale in December 2024, Sabra Dipping Company (a 50%/50% JV with PepsiCo in the U.S. and Canada)("Sabra"), and PepsiCo Strauss Fresh Dips & Spreads International(1) (a 50%/50% JV with PepsiCo outside the U.S. and Canada) ("Obela"). For more information on this sale, please refer to the Description of the Company's Business Report for 2024, section 11.1.

In addition, non-GAAP figures exclude any share-based payments, mark to market of commodity hedging transactions as at end-of-period, certain 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.

Business Update

Strauss Group | Q1-2025 Summary

Strong growth across all segments, supported by pricing & volume growth in most categories

Gross profit & EBIT continue to be under pressure due to raw material inflation, while productivity measures drive improved operational excellence Maalot S&P ilAA+, Stable outlook rating affirmed

Returning capital to our shareholders with a dividend of NIS 200m paid & an additional NIS 160m announced during Q1-25

Continued focus on executing our long-term strategy to shape the company for future success

Strauss Group Q1-2025 Non-GAAP Financial Results| NIS m

2,990 Net sales	15.5% Growth in sales	20.9% Growth excluding foreign currency effects
181 EBIT	-11.2% Change in EBIT	6.0% EBIT margin
73 Net Profit attributable to shareholders	-54.8% Change in net profit attributable to shareholders	0.62 NIS Earnings per share
-347 Operating cash flow	-232 Change in operating cash flow
-495 Free cash flow	-217 Change in free cash flow

Strauss Israel		Strauss Coffee International			Strauss Water
Net sales	1,396 NIS millions	+6.6% Sales growth		1,388 NIS millions Net sales	+45.4% Sales growth	65.0% Sales growth excl. FX effect	206 NIS millions Net sales	+6.9% Sales growth
113* NIS million EBIT		-25.7%* EBIT change	8.1%* EBIT margin	55 NIS million EBIT	+43.9% EBIT change	3.9% EBIT margin	26 NIS million EBIT	+8.7% EBIT change	12.5% EBIT margin

Commodities Price Development: 2020-2025

Strauss Israel

Highlights:

• New products launched & market share growth* across most categories
• Price updates in Q1-25 in response to significant raw material inflation in F&I Snacks & Confectionery and Coffee
• Productivity initiatives driving operational excellence improvement
• Excluding realization of non-recurring loss on cocoa derivatives of NIS 49m**, Strauss Israel's EBIT would have increased by 6.7% with a margin of 11.6%, in line with Q1-24, while Fun & Indulgence's EBIT margin would have reached 8.3% vs. 11.9% in 2024

Next Steps:

• Diversify cocoa sourcing to increase supply chain resilience
• Supporting growth with continued innovation

	STRAUSS ISRAEL
NIS m	H& W	F& I (Snacks & Confectionery)	F& I (Coffee Israel)	TOTAL
SALES
Q1-25 Q1-24	742 731	394 361	260 217	1,396 1,309
EBIT
Q1-25 Q1-24	88 74	-16 42	41 35	113 151
EBIT %
Q1-25 Q1-24	11.9% 10.2%	-4.2% 11.5%	15.7% 16.3%	8.1% 11.6%

H&W – Health & Wellness; F&I – Fun & Indulgence

* According to Storenext

** The outstanding loss balance due to cocoa derivatives, totaling approximately NIS 49 million, was realized in the Q1-2025 non-GAAP financial results, but has already been accounted for in the FY 2024 GAAP financial results

Coffee International

Highlights:

• Volume growth in 3C Brazil & Central Eastern Europe (CEE)
• Maintaining #1 market position in Brazil
• Price updates in Q1-25 in response to significant green coffee price inflation
• Continued growth of non-R&G products in 3C Brazil
• Operational efficiencies
• Improvement in EBIT, in 3C Brazil EBIT nearly tripled

Next Steps:

• 3C Brazil –expand non R&G categories (organic & non organic) and improve the R&G profitability.
• CEE -Diversify coffee portfolio with value added products and innovation

COFFEE INTERNATIONAL

NIS m	Q1-25	Q1-24	% change	% change w/o FX
SALES	1,388	954	45.4%	65.0%
EBIT	55	38	43.9%	51.5%
EBIT%	3.9%	4.0%

Strauss Water

Highlights:

• Sales growth supported mainly by an increase in the install base, and an increase in appliances sold
• Improvement in EBIT, mainly following:
  • Increase in sales and improved sales mix
  • Productivity initiatives
• Haier Strauss Water (HSW) sales & net income continued to grow
• New brand launched in Strauss Water UK in March 2025 with Culligan

Next Steps:

• New products and expansion of the portfolio
• Double down on market presence in China & UK
• 2 nd manufacturing facility being built in China
• Geographical expansion

WATER
NIS m	Q1-25	Q1-24	% change
SALES	206	193	6.9%
EBIT	26	24	8.7%
EBIT%	12.5%	12.3%

FOCUS & MOVING FORWARD

Focusing on Consumer Centric Food Trends

S T R A T E G I C I N S I G H T S D R I V I N G P R O D U C T I N N O V A T I O N

Snacking Innovation Examples

( Fu n c t i o n a l N u t r i t i o n )

WELLNESS FITNESS & HIGH PROTEIN DIETS

S U P P O R T I N G P O S I T I O N A S A N I N N O V A T I O N P O W E R H O U S E *

PLANT BASED EXPANSION - DEDICATED FACILITY

completion expected by the end of 2025

All products are currently available on the shelf

NEW FACILITY AT YOTVATA TO INCREASE GROWTH

completion expected by the end of 2025

All products are currently available on the shelf

FOCUS ON NON ROAST & GROUND CATEGORIES IN BRAZIL

Productivity Roadmap

SUPPLY CHAIN

STRATEGIC PROCUREMENT

• Building supply chain resilience by implementing a strategic approach:
• Optimization of procurement processes
• Data driven decision making
• Direct purchasing (cutting out middle-man)
• Diversifying supply source (direct & indirect)
• Sales & Operation Planning (S&OP) optimization of orders and shipments

REVENUE GROWTH MANAGEMENT & MARKETING ROI

• Focus on revenue management capabilities
• Design to Value (DTV) across all business units
• Optimization of Marketing Efforts (media mix, length of campaigns…)

OPERATIONAL EXCELLENCE

▪ Implementation of best-practice programs in manufacturing facilities in order to improve efficiency ▪ Revisiting operational model focusing on optimization of in-house resources (logistics, warehouse …)

CAPABILITY BUILDING AND MINDSET

• Ensuring operational continuity through employee learning and capability building
• Focus on excellence

O N T R A C K T O A C H I E V I N G N I S 300 - 400M I N R U N R A T E S A V I N G S B Y 2026

Top-line Growth Playbook	5% CAGR 2024-2026
Expanding	10%-12% EBIT margin in
Margins	2026
Enhancing Cost Structure Productivity	300-400m NIS by 2026
Investing In The	CAPEX to reach 5%-
Future	7% of sales 2024-2026
Focusing	85% of total
on the Core	sales in 2026

REMINDER OF LONG TERM TARGETS & 2026 OUTLOOK

Q1-25 Financial Results

Group Q1-2025 Performance | NIS m; Non-GAAP

	Q1-2025	Q1-2024	% change	% change w/o FX impact
Net Sales	2,990	2,589	+15.5%	+20.9%
Gross profit	781 26.1% Gross Margin	874 33.7% Gross Margin	-10.6%	-7.7%
EBIT	181 6.0% EBIT Margin	204 7.8% EBIT Margin	-11.2%	-10.4%
Net income*	73 2.4% Net Margin	159 6.2 % Net Margin	-54.8%	-54.2%
EBITDA	282 9.4% EBITDA Margin	318 12.3% EBITDA Margin	-11.1%	-10.0%
FCF	-495	-278	-78%

• Net Sales strong growth supported by pricing, improved sales mix and higher volumes following improved market position in Brazil, Poland, Romania and in key categories in Israel. Pro-forma sales growth reached +23.3%**.
• Gross Profit decline reflects ongoing raw material price inflation, sale of Sabra & Obela and realization of NIS 49m non-recurring loss on cocoa derivatives.
• EBIT excluding the NIS 49m non-recurring loss on cocoa derivatives, EBIT would have reached NIS 230m, reflecting a margin of 7.7%. Protection of margins reflects productivity measures throughout the group.
• Net income reflects higher tax provision due to an increase in payable profits, mainly due to currency translations, in comparison to tax income in Q1-2024.
• FX –weakening of currencies against NIS, mainly BRL, impacting translation.
• FCF impacted by an increase in WC needs in light of raw material price inflation.

* Net income attributable to shareholders of the Company

** Proforma sales growth refers to the growth without the consolidation of divested activities included in 2024 results

Group & Segment Q1-2025 Sales | NIS m; Non-GAAP

• Strauss Israel pricing, improved sales mix and higher volumes across most categories following improved market position
• Coffee International pricing and higher volumes as well as market share
• Strauss Water higher install base

Strauss Israel Q1 Sales Bridge:

• Other Divestment of Sabra & Obela during Q4-2024
• FX Weakening of currencies against NIS, mainly BRL

Group Q1-2025 Gross Profit | NIS m; Non-GAAP

^{874 847 781} 28 6 (27) (48) (52) Gross Profit Q1-24 Translation Differences Gross Profit Q1-24 excl. FX effect Strauss Israel Coffee Int'l Strauss Water Other Gross Profit Q1-25 33.7% 26.1% *

KEY IMPACTS: Strauss Group Q1 Gross Profit Bridge:

• Strauss Israel ongoing raw material price inflation and realization of NIS 49m non-recurring loss on cocoa derivatives
• Coffee International pricing & volume growth compensated green coffee price inflation
• Strauss Water higher install base
• Other divestment of Sabra & Obela during Q4-2024
• FX –weakening of currencies against NIS, mainly BRL
• Excluding the NIS 49m non-recurring loss on cocoa derivatives, Gross Profit would have reached NIS 830m, reflecting a 27.7% margin

Group Q1-2025 EBIT | NIS m; Non-GAAP

KEY IMPACTS: Strauss Group Q1 EBIT Bridge:

• Strauss Israel raw material price inflation and realization of NIS 49m non-recurring loss on cocoa derivatives offset by productivity measures
• Coffee International decrease in OPEX following operational efficiencies in Brazil & Romania
• Strauss Water productivity measures & higher profits from Haier Strauss Water
• Other higher "The Kitchen" losses and divestment of Sabra and Obela
• Excluding the NIS 49m nonrecurring loss on cocoa derivatives, EBIT would have reached NIS 230m, reflecting a 7.7% margin

Q1-2025 EBIT and EBIT margins| NIS m; Non-GAAP

Q1-2025 EBITDA and EBITDA margins| NIS m; Non-GAAP

NET Debt and Net Debt / EBITDA (LTM)| NIS m; Non-GAAP

• Increase in Net Debt due to:
  • Increase in Working Capital
  • Dividend payment in Q1 of NIS 200m
• Maalot S&P ilAA+, Stable outlook rating affirmed

Strauss Israel

Strauss Israel Q1-2025 Performance | NIS m; Non-GAAP

	Q1-2025	Q1-2024	% change	Strauss Israel Segments - Q1-2025
Net Sales	1,396	1,309	+6.6%	1,396
Gross profit	449 32.2% Gross Margin	498 38.0% Gross Margin	-9.8%	742
EBIT*	113 8.1% EBIT Margin	151 11.6% EBIT Margin	-25.7%	449 394 275 260 165
EBITDA*	165 11.8% EBITDA Margin	206 15.8 % EBITDA Margin	-19.9%	113 112 102 88 72 50 41 3 -16 Strauss Israel H&W F&I - Snacks & F&I - Coffee Israel Confectionery
				Sales Gross Profit EBIT EBITDA

• Excluding the NIS 49m non-recurring loss on cocoa derivatives, EBIT would have reached NIS 162m, reflecting a margin of 11.6%; EBITDA would have reached NIS 214m, reflecting a margin of 15.4%

• H&W – Health & Wellness; F&I – Fun & Indulgence

Strauss Israel Q1-2025 Sales| NIS m; Non-GAAP

Strauss Israel Q1 Sales Bridge:

KEY IMPACTS:

• Health & Wellness mainly higher pricing following updates during 2024
• Fun & Indulgence Snacks & Confectionery higher pricing with continued volume growth in confectionary and stable salty snacks performance
• Fun & Indulgence Coffee Israel higher pricing and volumes

Strauss Israel Q1-2025 Gross Profit | NIS m; Non-GAAP

KEY IMPACTS:

• Health & Wellness improvement in profit margins driven by productivity measures and improvement in sales mix
• Fun & Indulgence Snacks & Confectionery – excluding the NIS 49m non-recurring loss on cocoa derivatives, Gross Profit would have reached NIS 121m, reflecting a margin of 30.8%, impacted by cocoa price inflation
• Fun & Indulgence Coffee Israel price updates moderated the impact of green coffee price inflation

Strauss Israel Q1 Gross Profit Bridge:

Strauss Israel Q1-2025 EBIT | NIS m; Non-GAAP

KEY IMPACTS:

• Implementation of productivity initiatives throughout the business
• Excluding the NIS 49m nonrecurring loss on cocoa derivatives:
  • Strauss Israel EBIT would have reached NIS 162m, reflecting a 7.7% margin
  • Fun & Indulgence EBIT would have reached NIS 33m, reflecting an 8.3% margin

Coffee International

Strauss Coffee International Performance | NIS m; Non-GAAP

	Q1-2025	Q1-2024	% change	% change excl. FX effect
Net Sales	1,388	954	+45.4%	+65.0%	KEY IMPACTS:
Gross profit	233 16.7% Gross Margin	230 24.1% Gross Margin	+0.9%		▪ Net Sales – growth driven by higher pricing and volume growth in most geographies ▪ Gross Profit – higher prices offset green coffee price inflation, resulting in lower margins
EBIT	55 3.9% EBIT Margin	38 4.0% EBIT Margin	+43.9%	+51.5%	▪ EBIT – Operational efficiencies supporting margins despite green coffee price inflation
EBITDA	76 5.5% EBITDA Margin	61 6.4 % EBITDA Margin	+23.8%

33 Três Corações Group of companies is a joint venture (Brazil): the 3C Group is jointly held by the Strauss coffee B.V. (50%) and by the São Miguel Group (50%) (3C).

Strauss Coffee International Q1-2025 Sales | NIS m; Non-GAAP

Strauss Israel Q1 Sales Bridge:

KEY IMPACTS:

• 3C* higher pricing in light of green coffee price inflation and volume growth, maintaining #1 positioning in the market
• Central Eastern Europe (CEE) higher pricing in light of green coffee price inflation and volume growth in most geographies

Três Corações Alimentos S.A. | 100%; BRL m

	Q1-2025	Q1-2024	% change
Net Sales	3,282	1,759	+86.5%	KEY IMPACTS: ▪ Higher sales, reflecting: ▪ Price updates
Gross profit	493 15.0% Gross Margin	392 22.3% Gross Margin	+25.6%	▪ Volume growth ▪ Continued growth of non-R&G products in 3C Brazil ▪ Operational efficiencies ▪ EBIT nearly tripled & improvement in EBIT margin
EBIT	96 2.9% EBIT Margin	36 2.1% EBIT Margin	+167%

Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C). Additionally, Strauss Group has a joint holding with São Miguel Group in Três Corações Imóveis, which has a negligible contribution to Strauss Group's consolidated Non-GAAP financial results Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of March 31st , 2025

Strauss Water Performance | NIS m; Non-GAAP

	Q1-2025	Q1-2024	% change
Net Sales	206	193	+6.9%
Gross profit	99 48.2% Gross Margin	94 48.7% Gross Margin	+5.8%
EBIT*	26 12.5% EBIT Margin	24 12.3% EBIT Margin	+8.7%
EBITDA*	42 20.2% EBITDA Margin	44 22.4% EBITDA Margin	-3.7%

KEY IMPACTS:

• Sales mainly increase in install base and an increase in appliances sold
• Gross Profit supported by improved sales mix and implementation of productivity measures
• Increase in Haier Strauss Water (HSW) equity gains despite negative impact of FX translation

Haier Strauss Water Q1 Snapshot | 100%; ¥m; Non-GAAP

	Q1-2025	Q1-2024	% change
Net Sales	456	421	+8.2%
Net Income	62 13.6% Net Margin	52 12.4% Net Margin	+19.3%

KEY IMPACTS:

▪ Haier Strauss Water (HSW) - sales growth combined with net income expansion

Summary Q1-2025 Performance by Key Segment | NIS m; Non-GAAP

	Strauss	Strauss	Strauss	Strauss
	Israel	Coffee Int'l	Water	Group
Sales	1,396	1,388	206	2,990
vs 2024	1,309	954	193	2,589
% Sales Growth	6.6%	45.4%	6.9%	15.5%
Gross Profit vs 2024 % Gross Profit	449 -9.8% 32.2%	233 +0.9% 16.7%	99 +5.8% 48.2%	781 -10.6% 26.1%
EBIT	113	55	26	181
vs 2024	-25.7%	+43.9%	+8.7%	-11.2%
% EBIT	8.1%	3.9%	12.5%	6.0%
EBITDA	165	76	42	282
vs 2024	-19.9%	+23.8%	-3.7%	-11.1%
% EBITDA	11.8%	5.5%	20.2%	9.4%

For further details please contact:

Rivka Neufeld

Phone: + 972-54-4224146 IR@Strauss-Group.com

www.strauss-group.com

Appendix

• Non-GAAP to GAAP reconciliation
• Currencies
• Três Corações Alimentos S.A.
• Raw Materials Prices

Q1 GAAP and Non-GAAP^| NIS ^m

GAAP			Adjusted Non-GAAP
	Q1-2025	Q1-2024	Chg.	% Chg.	Q1-2025	Q1-2024	Chg.	% Chg.
Sales	1,887	1,726	161	9.3%	2,990	2,589	401	15.5%
Profit Gross	612	565	47	8.3%	781	874	(93)	(10.6%)
GPMargin	32.4%	32.7%	-0.3ppt		26.1%	33.7%	-7.6ppt
EBIT	190	117	73	62.6%	181	204	(23)	(11.2%)
EBITMargin	10.1%	6.8%	3.3ppt		6.0%	7.8%	-1.8ppt
Net Profit Shareholders to	86	51	35	67.8%	73	159	(86)	(54.8%)
NPMargin	4.5%	3.0%	1.6ppt		2.4%	6.2%	-3.7ppt
WC Change in	(313)	(93)	(220)	(235.4%)	(617)	(282)	(335)	(119.4%)
Operating Cash Flow	(93)	25	(118)	-	(347)	(115)	(232)	(200.7%)
net CAPEX,	(132)	(133)	1	0.0%	(148)	(163)	15	9.2%
FCF	(225)	(108)	(117)	(108.3%)	(495)	(278)	(217)	(78.1%)
Net Debt	2,029	2,326	(297)	(12.8%)	2,652	2,789	(137)	(4.9%)

GAAP to Non-GAAP Reconciliation Items

• Adjustments for IFRS 11 transition from the equity method in the financial accounting (GAAP) reports to the proportionate consolidation method (according to the segmental information based on the Group's internal management reports). 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), Strauss Frito-Lay Ltd. (a 50%/50% JV with PepsiCo Frito-Lay in Israel) and until the completion of the sale in December 2024, Sabra Dipping Company (a 50%/50% JV with PepsiCo in the U.S. and Canada)("Sabra"), and PepsiCo Strauss Fresh Dips & Spreads International(1) (a 50%/50% JV with PepsiCo outside the U.S. and Canada) ("Obela"). For more information on this sale, please refer to the Description of the Company's Business Report for 2024, section 11.1.
• Mark-to-market at end-of-period of open positions in the Group in respect of financial derivatives used to hedge commodity prices and all adjustments necessary to delay recognition of most of the gains or losses arising from commodity derivatives until the date when the inventory is sold to outside parties and/or the financial derivative is exercised
• Additional adjustments for the management (non-GAAP) reports (share-based payment, valuation of hedging transactions, certain other expenses/income net and taxes referring to those adjustments)

Currencies

Currency vs. NIS	Q1-2025	Q1-2024	Change YoY
USD	3.613	3.661	-1.3%
EUR	3.801	3.974	-4.4%
GBP	4.549	4.642	-2.0%
PLN	0.904	0.917	-1.4%
RON	0.763	0.799	-4.5%
RUB	0.039	0.04	-3.6%
BRL	0.616	0.739	-16.7%
RSD	0.032	0.034	-4.2%
UAH	0.087	0.096	-9.7%
CNY	0.497	0.511	-2.8%

Local Currencies vs. NIS Local Currencies vs. USD

Currency vs. USD	Q1-2025	Q1-2024	Change YoY
NIS	0.277	0.273	1.3%
EUR	1.052	1.086	-3.1%
GBP	1.259	1.268	-0.7%
PLN	0.25	0.25	-0.1%
RON	0.211	0.218	-3.2%
RUB	0.011	0.011	-2.3%
BRL	0.171	0.202	-15.6%
RSD	0.009	0.009	-3.0%
UAH	0.024	0.026	-8.5%
CNY	0.138	0.14	-1.5%

Raw Materials Prices

Category	Q1-2024 average	Q1-2025 average	Change %
Arabica	189 c/lbs	376 c/lbs	98%
Robusta	3275 \$/T	5436\$/T	66%
Sugar	634.8 \$/T	524\$/T	-17%
Cocoa	5,012 GBP/T	7697 GBP/T	54%
Sesame	1,845 \$/T	1668 \$/T	-10%
Milk (Israel)	2.39 ILS/L	2.40 ILS/L	0.4%