STRAUSS GROUP March 14 th , 2018 Annual and Q4 2017 Earnings - - PowerPoint PPT Presentation

STRAUSS GROUP

March 14th, 2018

Annual and Q4 2017 Earnings Presentation

This presentation does not constitute an offering to purchase or sell securities of Strauss Group Ltd. (the “Company”)

• r an offer for the receipt of such offerings. The presentation's sole purpose is to provide information. The information

contained in the presentation and any other information provided during the presentation (the “Information”) does not constitute a basis for investment decisions and does not comprise a recommendation, an opinion or a substitute for the investor's sole discretion. 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 Company is not liable, and will not be held liable, for any damage and/or loss that may be caused as a result of use of the Information. 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.

.

Disclaimer

2

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

• utside the U.S. and Canada)(1).

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.

GAAP to Non-GAAP Reconciliations

3

(1) In Q4'16 the subsidiary Strauss Water signed a series of share exchange and transfer agreements with companies of the Haier Group, as well as a joint venture agreement, with the aim of restructuring the Haier Strauss Water joint venture in China. The change in respect of the above agreements was reflected in the non- GAAP reports commencing in the third quarter of 2015. For further information, see Note 12.6 to the Consolidated Financial Statements as at December 31, 2015.

Gadi Lesin

Strauss Group C.E.O.

4

Q4 2017 Financial Highlights

NIS mm; Non-GAAP

5

(1)

Q4'17 Sales: NIS 2157mm; growth: 6% Q4'17 Organic growth excluding FX: 10.2% Q4'17 gross margins: 35.9% (up 60 bps vs. Q4'16) EBIT and EBIT margins: NIS 149mm (up 10.4%); 6.9% (up 30 bps vs. Q4'16) Net income and net margins: NIS 77mm (up 34%); 3.6% (up 80 bps vs. Q4'16) EPS: 0.67 (up 26% VS. Q4'16)

YTD 2017 Financial Highlights

NIS mm; Non-GAAP

6

(1)

YTD 2017 Sales: NIS 8492mm; growth: 6.9% YTD 2017 Organic growth excluding FX: 8% YTD 2017 Gross margins: 36.7% (down -80 bps vs. YTD 2016) EBIT and EBIT margins: NIS 780mm (up 4.8%); 9.2% (down -20 bps vs. YTD 2016) Net income and net margins: NIS 415mm (up 23.7%); 4.9% (up 70 bps vs. YTD 2016) EPS: 3.7 (up 18.8% VS. YTD 2016)

Strauss Israel – Strong growth beyond F&B market continues

• Top line growth of 11.3% during the quarter continues to surpass growth of

the overall Food & Beverage market which grew 3.8% during the quarter (1)

• Exceptional growth achieved among others, due to innovation and new

distribution agreements

• Market share continues to expand to 11.9% at the end of the year
• Gross margins erode predominantly due to higher milk prices
• Innovation continues with new product launches
• We continue to focus on delivering healthier products with less sugar, salt and

fat contents

7

* Source: Storenext

Strauss Coffee – 2017 Top Line Growth 11.6%

8

• Q4 top line grew 6.5% in local currencies
• Growth in 2017 is attributed mainly to increased volumes in Brazil, Israel and

Russia and higher selling prices in some geographies (no price increase in Israel)

• Very strong performance in International Coffee sales; 13.2% top line growth
• Brazil 3C(1) continues to lead growth with 8.9% increase in local currency for the

quarter and 19.8% for 2017

• Currency negatively impacted the quarter by NIS 42 million; mainly by BRL

depreciation of NIS 37 million; for 2017 the currency impact was negligible with

• nly NIS 1 million negative impact of which BRL had a positive impact of NIS 13

million

• 3C(1) market share in Brazil R&G was at 25.3% (2) at the end of 2017

(1) Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C) (2) Source: Nielsen

International Dips and Spreads

9

• Sales improve in Q4 by 24% after Q4 2016 recall
• Hummus market share in North America continue to rise towards pre-recall level

and was at 56.5% at year end

• Obela operations in Australia continue to outperform and in 2017 Obela launched

in two new geographies - New Zealand and Germany

• Obela started selling Hummus products in Germany as its first phase in the

European penetration

• Sabra continues to be a global market leader and the no. 1 producer of Hummus in

North America

Strauss Water

10

• In Q4 Strauss Water continued the strong momentum of the previous three

quarters of 2017, both in Israel and at HSW (Chinese JV with Haier)

• Sales at Strauss water (excluding HSW) are up 9.3% during the quarter, due to

increased sales in Israel

• During 2017 Strauss Water launched the Bubble Bar plus and the new Maze T

technology

• Sales of HSW (100%), water JV in China, grew by 24% (31% excluding FX) in Q4

2017 to NIS 129 million up from NIS 104 million in Q4 2016 and by 44% in 2017 to NIS 505 million up from NIS 351 million in 2016 (55% excluding FX)

• Net profits at HSW doubled during the quarter to NIS 17 million compared to NIS

9 million in Q4 2016 and up 95% in 2017 to NIS 56 million compared to NIS 29 million in 2016

Shahar Florence

Strauss Group C.F.O.

11

Q4 2017

12

2,080 1,899 2,034 2,157 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 Q4'14 Q4'15 Q4'16 Q4'17

• Organic growth excluding FX : +10.2%

13

Prior to Food Law

Food Law NIS

• 15mm

Negative translation differences = NIS 53

Strong Organic Sales Growth Continues 6.0% in Q4

Q4 2017 Consolidated Sales NIS mm; Non-GAAP

2,157 1,085 768 168 136 100% 50% 36% 8% 6%

0% 20% 40% 60% 80% 100% 120%

• 500

1,000 1,500 2,000 2,500

Overall Group Strauss Coffee Strauss Israel Dips & Spreads Other

Q4 2017 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

’17/’16 Growth ’17/’16 Organic growth excl. FX 14

6.0% 2.3% 11.3% 24.1%

• 8.4%

10.2% 6.5% 11.3% 34.8% 9.5%

2,034 2,157 199 (23) (53)

Group sales, fourth quarter 2016 Net Organic Growth M&A Effect of Translation Differences * Group sales, fourth quarter 2017

Q4 Sales Bridge

15

+10.2% organic growth (1)

NIS mm; Non-GAAP; Q4’16 to Q4’17

(1) Excluding FX Primarily due to the weakening of the BRL (NIS -37mm) and the USD (NIS -10mm) Primarily due to the disposal of Max Brenner

2,034 2,209.8 2,157 78 64 46 11 (23) (53)

Group sales, fourth quarter 2016 Strauss Israel Coffee International Dips & Spreads Other M&A Effect of Translation Differences * Group sales, fourth quarter 2017

Q4 Sales Bridge

16 Higher volumes due to innovation and new distribution agreements Sales growth in Strauss- Water;

NIS mm; Non-GAAP; Q4'16 to Q4’17

Higher volumes in Brazil an Israel and higher selling prices in some regions (1)

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

Max Brenner sale end of Q2 2017 Primarily due to the weakening of the BRL (NIS -37mm) and the USD (NIS -10mm)

750 700 717 774 36.1% 36.8% 35.3% 35.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100 200 300 400 500 600 700 800 Q4'14 Q4'15 Q4'16 Q4'17

17

Q4 Consolidated Gross Profit and Gross Margins

NIS mm; Non-GAAP

• Excl. FX:

10.2%

Negative translation differences NIS -14

774 301 333 140 35.9% 39.2% 30.7% 46.2%

• 100

200 300 400 500 600 700 800 900

Overall Group Strauss Israel Strauss Coffee Dips & Spreads + Other

Higher volumes, affected by higher milk price

Q4 2017 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q4’16 GP & GM

18 Increase volumes in Brazil and Russia and higher selling prices in most countries Higher profits in Water offset by lower Sabra profits

D = 57mm D = 20mm D = 13mm D = 24mm

NIS 717 NIS 281 NIS 320 NIS 116 40.8% 40.9% 35.3% 30.2%

143 158 135 149 6.9% 8.3% 6.6% 6.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 120 125 130 135 140 145 150 155 160 Q4'14 Q4'15 Q4'16 Q4'17

19

Q4 Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

• Q4’17 / Q4’16: 10.4%
• excluding FX : 12.5%

Increased sales in Coffee, Israel and Water offset by lower Sabra sales

Q4 EBIT Bridge

20

Total EBIT up 10.4%

NIS mm; Non-GAAP; Q4’16 to Q4’17 135 149 16

• 2

(2)

Operating profit, fourth quarter 2016 EBIT growth excluding FX effect of Translation Differences Operating profit, fourth quarter 2017

149 69 79

• 4

5

6.9% 9.0% 7.3%

• 2.2%

3.9%

• 20

20 40 60 80 100 120 140 160

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

Q4 2017 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

Q4’16 EBIT & EBIT %

21

Sabra still affected by recall and amortization

• f intangible in

Salsa

Sales growth, volume and innovation

Decline in Max

• ffset

increased Water sales

D = 14mm D = 3mm D = -5mm D = 10mm D = 6mm NIS 135 NIS 66 NIS 84 NIS -14 NIS -1

• 10.5%
• 0.8%

6.6% 8.0% 9.6%

Sales growth, higher volume in Brazil and Russia and higher selling price in most geographies

199 220 194 214 9.6% 11.6% 9.5% 9.9% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 19.0% 50 100 150 200 250 300 Q4'14 Q4'15 Q4'16 Q4'17

22

Q4 2017 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

Q4 2017 EBITDA and EBITDA Margins

NIS mm; Non-GAAP; % Margin

Q4’16 EBITDA and EBITDA Margins

23

D = 20mm D = 5mm D = -5mm D = 11mm D = 9mm

NIS 194 NIS 89 NIS 102 NIS -7 NIS 10

• 5.4%

9.5% 9.6% 12.8% 7.3%

214 94 97 4 19

9.9% 12.3% 9.0% 2.2% 14.5%

50 100 150 200 250

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

357 344 233 294

• 50

100 150 200 250 300 350 400 Q4'14 Q4'15 Q4'16 Q4'17

36 57

• 26
• 3

10.1% 16.4% 0.0% 5.0% 10.0% 15.0% 20.0%

• 40
• 20
• 20

40 60 80 Q4'14 Q4'15 Q4'16 Q4'17

Sabra Q4 Snapshot

NIS mm; Non-GAAP; for 100% share

Sales EBIT and EBIT Margins

Organic excl. FX 37.3% 24

Note: Sabra Dipping Company (“Sabra”) is a company jointly held by PepsiCo (50%) and Strauss Group (50%) .

715 932 1,013

Q4'15 Q4'16 Q4'17

198 228 264 27.8% 24.4% 26.0%

Q4'15 Q4'16 Q4'17

65 69 70

Q4'15 Q4'16 Q4'17

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

Q4 Snapshot

BRL mm for 100% ownership and including inter-company sales Sales GP and GM EBIT and EBIT Margins (1)

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 December 31st, 2017. (1) EBIT before Other Expenses/ Income.

25

9.0% 7.4% 6.9%

84 74 58 77

4.0% 3.9% 2.8% 3.6%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%

• 10

10 30 50 70 90 110 130 150 Q4'14 Q4'15 Q4'16 Q4'17

0.78 0.69 0.53 0.67

Q4 Net Profit Increases 34% (attributed to the Company’s shareholders), Net Margins and EPS

NIS mm; Non-GAAP

EPS

26

Q4 Net Profit (attributed to the Company’s shareholders) Bridge

NIS mm; Non-GAAP; Q4'16 to Q4’17

27

58 77 21 14 (7) (9)

Net Income Q4 2016 Non controlling interest EBIT Taxes on income Finance exp. Net Income Q4 2017

Net Debt and Net Debt /EBITDA (LTM)

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

28

1,688 1,655 1,428 2,080

1.8x 1.9x 1.5x 2.0x

• 0.5x

1.0x 1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 500 1,000 1,500 2,000 2,500 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Q4 GAAP and Non-GAAP Financial Highlights

NIS mm

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

29

GAAP Adjusted Non-GAAP Q4 2017 Q4 2016 % Chg. Q4 2017 Q4 2016 % Chg. Sales 1,385 1,310 5.7% 2,157 2,034 6.0% Gross Profit 522 490 6.4% 774 717 8.0% GP Margin 37.7% 37.4% 35.9% 35.3% Operating Profit 127 93 37.4% 149 135 10.4% EBIT Margin 9.2% 7.0% 6.9% 6.6% Net Profit (to SH) 68 30 128.6% 77 58 34.0% NP Margin 4.9% 2.3% 3.6% 2.8% Operating Cash Flow 186 300 328 360 Capex (1) (55) (49) (79) (76) Net debt 1,897 1,120 2,080 1,428 Change in WC (CF) 100 208 204 243

30

Thank You!

For further details please contact: Daniella Finn| Investor Relations Phone: + 972-3-675-2545 Mobile: + 972-54-577-2195 Daniella.finn@Strauss-Group.com www.strauss-group.com

Appendix

31

Appendix

YTD 2017

Additional information

32

YTD 2017 GAAP and Non-GAAP Financial Highlights

NIS mm

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

33

GAAP Adjusted Non-GAAP YTD 2017 YTD 2016 % Chg. YTD 2017 YTD 2016 % Chg. Sales 5,480 5,282 3.7% 8,492 7,943 6.9% Gross Profit 2,126 2,103 1.1% 3,116 2,980 4.6% GP Margin 38.8% 39.8% 36.7% 37.5% Operating Profit 641 680 (5.7%) 780 744 4.8% EBIT Margin 11.7% 12.9% 9.2% 9.4% Net Profit (to SH) 342 272 25.8% 415 335 23.7% NP Margin 6.2% 5.1% 4.9% 4.2% Operating Cash Flow 368 610 622 762 Capex (1) (184) (162) (268) (239) Net debt 1,897 1,120 2,080 1,428 Change in WC (CF) (98) 216 (82) 153

8,140 7,642 7,943 8,492 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 YTD14 YTD15 YTD16 YTD17

Sales grew 6.9% in 2017 – Continued Outperformance of F&B market

YTD 2017 Consolidated Sales NIS mm; Non-GAAP

34

Prior to Food Law

Food Law NIS

• 63mm

Negative translation differences = NIS -49

• Organic growth excluding FX : +8.0%

YTD 2017 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

’17/’16 Growth ’17/’16 Organic growth

• excl. FX

35

8,492 4,100 3,131 692 569 100% 48% 37% 8% 7%

0% 20% 40% 60% 80% 100% 120%

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Overall Group Strauss Coffee Strauss Israel Dips & Spreads Other

6.9% 11.6% 5.6%

• 3.4%
• 3.5%

8.0% 11.0% 5.6% 2.2% 7.7%

7,943 8,492 629 (49) (31)

Group sales, FY 2016 Net Organic Growth Effect of Translation Differences * M&A Group sales, FY 2017

YTD 2017 Sales Bridge

36

+8.0% organic growth (1)

NIS mm; Non-GAAP; YTD 2016 to YTD 2017

(1) Excluding FX Primarily negative USD translation (NIS -45mm)

• ffset by positive BRL

translation (NIS +13mm)

7,943 8,541.5 8,492 406 167 41 15 (31) (49)

Group sales, FY 2016 Coffee Strauss Israel Other International Dips & Spreads M&A Effect of Translation Differences * Group sales, FY 2017

YTD 2017 Sales Bridge

37

NIS mm; Non-GAAP; YTD 2016 to YTD 2017

Higher volumes and higher selling prices mainly in Brazil 3C

Manily growth in Strauss-Water

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

Primarily negative USD translation (NIS -45mm)

• ffset by positive BRL

translation (NIS +13mm) Higher volumes due to innovation and new distribution agreements Mainly due to Max Brenner disposal,

• ffset by Florentine

and Iguacu

3,119 2,829 2,980 3,116 38.3% 37.0% 37.5% 36.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

• 500

1,000 1,500 2,000 2,500 3,000 3,500 YTD14 YTD15 YTD16 YTD17

38

YTD 2017 Consolidated Gross Profit and Gross Margins

NIS mm; Non-GAAP

• excl. FX:

+5.4%

Negative translation differences NIS -25

YTD 2017 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

YTD 2016 GP & GM

39

3,116 1,233 1,314 569 36.7% 39.4% 32.2% 45.1%

• 30

470 970 1,470 1,970 2,470 2,970 3,470

Overall Group Strauss Israel Strauss Coffee Dips & Spreads + Other

D = 136mm D = 45mm D = 132mm D = -41mm

NIS 2980 NIS 1188 NIS 1182 NIS 610 37.5% 32.2% 40.1% 46.7%

746 659 744 780 9.2% 8.6% 9.4% 9.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

• 100

200 300 400 500 600 700 800 900 YTD14 YTD15 YTD16 YTD17

40

YTD 2017 Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

• YTD 2017 / YTD 2016: +4.8%
• excluding FX : +4.7%

744 780 1 35

YTD'16 EBIT effect of Translation Differences EBIT growth excluding FX YTD'17 EBIT

YTD 2017 EBIT Bridge

41

Total EBIT up 4.8% EBIT exc. FX up 4.7%

NIS mm; Non-GAAP; YTD 2016 to YTD 2017

964 891 975 1,018 11.8% 11.7% 12.3% 12.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 500 600 700 800 900 1000 1100 YTD14 YTD15 YTD16 YTD17

42

YTD 2017 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

780 328 393 19 40

9.2% 10.5% 9.6% 2.8% 6.9%

• 100

200 300 400 500 600 700 800 900

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

YTD 2017 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

YTD 2016 EBIT & EBIT %

43

D = 36mm D = 14mm D = 34mm D = -29mm D = 17mm NIS 744 NIS 314 NIS 359 NIS 48 NIS 23 6.6% 3.9% 9.4% 9.8% 10.6%

YTD 2017 EBITDA and EBITDA Margins

NIS mm; Non-GAAP; % Margin

YTD 2016 EBITDA and EBITDA Margins

44

1,018 419 459 51 89

12.0% 13.4% 11.2%

7.4%

15.7%

200 400 600 800 1000 1200

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

D = 43mm D = 12mm D = 36mm D = -24mm D = 19mm

NIS 975 NIS 407 NIS 423 NIS 75 NIS 70 12.3% 11.5% 13.7% 11.9% 10.5%

371 293 335 415

4.6% 3.8% 4.2% 4.9%

• 1.0%

1.0% 3.0% 5.0% 7.0% 9.0% 11.0%

• 50

100 150 200 250 300 350 400 450 YTD14 YTD15 YTD16 YTD17

3.47 2.74 3.12 3.70

YTD 2017 Net Profit Up 23.7% (attributed to the Company’s shareholders), Net Margins and EPS

NIS mm; Non-GAAP

EPS

45

YTD 2017 Net Profit Bridge (attributed to the Company’s shareholders)

NIS mm; Non-GAAP; YTD 2016 to YTD 2017

46

335 415 54 36 2 (12)

Net Income, FY 2016 Non controlling interest EBIT Taxes on income Finance exp. Net Income, FY 2017

181 188 118 60 14.0% 13.2% 8.9% 4.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

• 50

100 150 200 YTD14 YTD15 YTD16 YTD17 1,288 1,422 1,328 1,244 1,150 1,200 1,250 1,300 1,350 1,400 1,450 YTD14 YTD15 YTD16 YTD17

Sabra YTD 2017 Snapshot

NIS mm; Non-GAAP; for 100% share

Sales EBIT and EBIT Margins

Organic

• excl. FX:

0.2% 47

Note: Sabra Dipping Company (“Sabra”) is a company jointly held by PepsiCo (50%) and Strauss Group (50%) .

740 817 1,002

29.1% 26.3% 26.9%

YTD15 YTD16 YTD17

220 254 321

8.6% 8.2% 8.6%

YTD15 YTD16 YTD17

2,540 3,103 3,720

YTD15 YTD16 YTD17

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

YTD 2017 Snapshot

BRL mm for 100% ownership and including inter-company sales Sales GP and GM EBIT and EBIT Margins (1)

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 June 30st, 2017. (1) EBIT before Other Expenses/ Income.

48

Appendix

Strauss Group

49

50

Local Currencies vs. the NIS

Current exchange rate as of June 30th, 2017.

RUB BRL PLN RSD AUD CAD EUR RON CHF USD MXN CNY UAH GBP YTD'17/YTD'16 7.4% 2.0%

• 2.1%
• 3.1%
• 3.4%
• 4.3%
• 4.4%
• 6.1%
• 6.2%
• 6.2%
• 7.5%
• 7.8%
• 9.9%
• 11.1%

Q4'17/Q4'16

• 0.9%
• 6.9%

3.4% 3.5%

• 6.0%
• 3.7%

0.0%

• 2.4%
• 7.1%
• 8.3%
• 4.2%
• 5.2%
• 11.9%
• 2.1%
• 15.0%
• 10.0%
• 5.0%

0.0% 5.0% 10.0%

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

51

Local Currencies vs. the USD

Current exchange rate as of June 30th, 2017.

RUB BRL ILS PLN RSD RON UAH YTD'17/YTD'16 14.4% 8.6% 6.7% 4.6% 3.5% 0.2%

• 3.9%

Q4'17/Q4'16 8.1% 1.5% 9.1% 12.8% 12.9% 6.4%

• 3.9%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0%

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

Appendix

Strauss Israel

52

Strauss Israel Non-GAAP Financial Highlights Q4 2017 NIS mm

53

Note: Figures were rounded to NIS millions. Totals were calculated on the basis of the exact figures in NIS thousands.

Strauss Israel (Non GAAP) YTD 2017 YTD 2016 % Chg. Q4 2017 Q4 2016 % Chg. Revenue: H&W 2,068 1,957 5.7% 514 466 10.2% F&I 1,063 1,006 5.6% 254 223 13.6% Total Revenue 3,131 2,963 5.6% 768 689 11.3% Total Gross Profit 1,233 1,188 3.8% 301 281 6.9%

Gross Margins

39.4% 40.1% (0.7%) 39.2% 40.8% (1.6%)

EBIT: H&W 222 213 4.2% 52 51 1.3%

Margins

10.8% 10.9% (0.1%) 10.2% 11.1% (0.9%)

F&I 106 101 5.8% 17 15 23.5%

Margins

10.0% 10.0% 0.0% 6.9% 6.3% 0.6%

Total EBIT 328 314 4.5% 69 66 5.1%

Margins

10.5% 10.6% (0.1%) 9.0% 9.6% (0.6%)

EBITDA: H&W 277 271 2.4% 66 66 1.4%

Margins

13.4% 13.8% (0.4%) 13.0% 14.1% (1.1%)

F&I 142 136 4.4% 28 23 21.3%

Margins

13.4% 13.5% (0.1%) 10.8% 10.2% 0.6%

Total EBITDA 419 407 2.9% 94 89 5.8%

Margins

13.4% 13.7% (0.3%) 12.3% 12.8% (0.5%)

2,972 2,866 2,963 3,131 2,700 2,750 2,800 2,850 2,900 2,950 3,000 3,050 3,100 3,150 3,200 YTD14 YTD15 YTD16 YTD17

YTD 2017 Strauss Israel Sales

NIS mm; Non-GAAP

54

683 688 689 768

• 100

200 300 400 500 600 700 800 900 Q4'14 Q4'15 Q4'16 Q4'17

Q4 Strauss Israel Sales

NIS mm; Non-GAAP

55

YTD 2017 Strauss Israel EBIT and EBIT Margins

NIS mm; Non-GAAP

56

315 281 314 328 10.6% 9.8% 10.6% 10.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

• 50

100 150 200 250 300 350 YTD14 YTD15 YTD16 YTD17

64 59 66 69 9.4% 8.6% 9.6% 9.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

• 10

20 30 40 50 60 70 80 Q4'14 Q4'15 Q4'16 Q4'17

Q4 Strauss Israel EBIT and EBIT Margins

NIS mm; Non-GAAP

57

Target Milk Price (NIS per liter)

Price excluding Strauss transportation costs

Milk

2.14 2.14 2.14 2.34 2.36 2.29 2.20 2.26 2.12 2.14 2.29 2.19 2.19 2.11 1.97 1.95 1.89 1.88 1.86 1.86 1.93 1.98 2.01 1.98 1.99 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

London Sugar Historical & Futures Prices 2014-2017 ($\T)

2015 Avg. 374 2014 Avg. 440 2017 Avg. 433 2016 Avg. 500

Futures

Sugar

Futures

London Cocoa Historical & Futures Prices 2014-2017 (GBP\T)

2015 Avg. 2,101 2014 Avg. 1,923 2017 Avg. 1,771 2016 Avg. 2,188

Cocoa

Futures

Appendix

Strauss Coffee

61

Strauss Coffee Non-GAAP Financial Highlights

Q4 2017 NIS mm

62

Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (“3C”). Strauss Coffee non-GAAP figures represent 50% share in Três Corações joint venture (Brazil). Note: Figures were rounded to NIS millions. Totals were calculated on the basis of the exact figures in NIS thousands.

Strauss Coffee (Non GAAP) YTD 2017 YTD 2016 % Chg. Q4 2017 Q4 2016 % Chg. Revenue: Israel 704 673 4.5% 167 147 13.9% International 3,396 3,000 13.2% 918 914 0.4% Total Revenue 4,100 3,673 11.6% 1,085 1,061 2.3% Total Gross Profit 1,314 1,182 11.2% 333 320 4.1%

Gross Margins

32.1% 32.2% (0.0%) 30.7% 30.2% 0.5%

EBIT: Israel 104 87 19.0% 20 8 132.7%

Margins

14.8% 13.0% 1.8% 12.2% 6.0% 6.2%

International 289 272 6.4% 59 76 (21.8%)

Margins

8.5% 9.1% (0.6%) 6.4% 8.3% (1.8%)

Total EBIT 393 359 9.4% 79 84 (5.9%)

Margins

9.6% 9.8% (0.2%) 7.3% 8.0% (0.7%)

EBITDA: Israel 117 100 17.6% 24 13 91.4%

Margins

16.7% 14.8% 1.9% 14.7% 8.7% 6.0%

International 342 323 5.7% 73 89 (18.3%)

Margins

10.1% 10.8% (0.7%) 7.9% 9.7% (1.8%)

Total EBITDA 459 423 8.5% 97 102 (4.5%)

Margins

11.2% 11.5% (0.3%) 9.0% 9.6% (0.6%)

Strauss Coffee Non-GAAP Sales by Geography

YTD 2017 & Q4 NIS mm

Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (“3C”). Strauss Coffee non-GAAP figures represent 50% share in Três Corações joint venture (Brazil). Note: Figures were rounded to NIS millions. Totals were calculated on the basis of the exact figures in NIS thousands.

63 Strauss Coffee Sales % Change % Change YTD 2017 YTD 2016 NIS Local Currency Q4 2017 Q4 2016 NIS Local Currency Israel 704 673 4.5% 4.5% 167 147 13.9% 13.9% International: Três Corações Joint Venture (Brazil) 2,085 1,727 20.7% 19.8% 546 539 1.4% 8.9% CIS 645 603 6.9% 5.1% 188 194 (3.1%) 0.6% Poland 304 281 8.3% 10.5% 82 76 8.0% 4.9% Romania 222 253 (12.3%) (6.5%) 60 65 (8.9%) (6.5%) Serbia 140 136 3.3% 5.8% 42 40 4.6% 0.7% Total International 3,396 3,000 13.2% 13.2% 918 914 0.4% 5.3% Total Coffee 4,100 3,673 11.6% 11.6% 1,085 1,061 2.3% 6.5%

3,825 3,432 3,673 4,100

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 YTD14 YTD15 YTD16 YTD17

YTD 2017 Strauss Coffee Sales

NIS mm; Non-GAAP

Strauss Coffee non-GAAP figures represent 50% share in Três Corações joint venture (Brazil).

• Excl. FX

+11.6%

64

1,032 875 1,061 1,085

• 200

400 600 800 1,000 1,200 Q4'14 Q4'15 Q4'16 Q4'17

Q4 2017 Strauss Coffee Sales

NIS mm; Non-GAAP

Strauss Coffee non-GAAP figures represent 50% share in Três Corações joint venture (Brazil).

Excl FX+6.5%

65

348 268 359 393 9.1% 7.8% 9.8% 9.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

• 50

100 150 200 250 300 350 400 450 YTD14 YTD15 YTD16 YTD17

YTD 2017 Strauss Coffee EBIT and EBIT Margins

Strauss Coffee non-GAAP figures represent 50% share in Três Corações joint venture (Brazil).

66

NIS mm; Non-GAAP

56 69 84 79 5.4% 7.8% 8.0% 7.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

• 10

20 30 40 50 60 70 80 90 Q4'14 Q4'15 Q4'16 Q4'17

Q4 Strauss Coffee EBIT and EBIT Margins

NIS mm; Non-GAAP

Strauss Coffee non-GAAP figures represent 50% share in Três Corações joint venture (Brazil).

67

Robusta Historical & Futures Prices 2014-2017 ($\T)

2015 Avg. 1,715 2014 Avg. 2,003 2017 Avg. 2,038 2016 Avg. 1,742

Futures

Robusta

Futures

Arabica Historical & Futures Prices 2014-2017 (Cent\Lb)

2015 Avg. 134 2014 Avg. 178 2017 Avg. 133 2016 Avg. 136

Arabica

Futures

NY Arabica and Brazil Arabica

Indexed since 9.11.2012

Source : Bloomberg

70

NY Arabica (traded in USD) Brazil Arabica (traded in BRL)

Appendix

Sabra & Obela

71

Strauss D&S Non-GAAP Financial Highlights

Q4 2017 NIS mm; 50% share

• Figures were rounded to NIS millions. Totals were calculated on the basis of the exact figures in NIS thousands.

72

Dips & Spreads (Non GAAP) YTD 2017 YTD 2016 % Chg. Q4 2017 Q4 2016 % Chg. Revenue: Sabra (50%) 622 664 (6.3%) 147 117 25.9% Obela (50%) 71 53 32.8% 22 19 13.0% Total Revenue 692 717 (3.4%) 169 136 24.1% EBIT: Sabra (50%) 30 59 (49.5%) (2) (13) (87.3%)

Margins

4.8% 8.9% (4.1%) (1.0%) (11.0%) 10.0%

Obela (50%) (11) (11)

NM

(2) (1)

NM

Margins

NM NM NM NM NM NM

Total EBIT 19 48 (59.9%) (4) (14) 74.4%

Margins

2.8% 6.6% (3.8%) (2.2%) (10.5%) 8.3%

Total EBITDA 51 75 (32.1%) 4 (7) 151.1%

Margins

7.4% 10.5% (3.1%) 2.2% (5.4%) 7.6%

Humera Sesame Prices 2014-2017 (USD/Metric Ton)

73

2017 Avg. 1,193 2015 Avg. 1,324 2016 Avg. 1,108 2014 Avg. 2,121

Appendix

Strauss Water

74

548 482 496 541 440 460 480 500 520 540 560 YTD14 YTD15 YTD16 YTD17

YTD 2017 Strauss Water Non-GAAP Sales

Non-GAAP; NIS mm

75

140 120 125 136 110 115 120 125 130 135 140 145 Q4'14 Q4'15 Q4'16 Q4'17

Q4 2017 Strauss Water Non-GAAP Sales

Non-GAAP; NIS mm

76