STRAUSS GROUP May 29 th , 2017 Q1 2017 Earnings Presentation - - PowerPoint PPT Presentation

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STRAUSS GROUP May 29 th , 2017 Q1 2017 Earnings Presentation - - PowerPoint PPT Presentation

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STRAUSS GROUP May 29 th , 2017 Q1 2017 Earnings Presentation Disclaimer 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

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SLIDE 1

STRAUSS GROUP

May 29th, 2017

Q1 2017 Earnings Presentation

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SLIDE 2

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

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SLIDE 3

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 Q1’15 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.

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SLIDE 4

Gadi Lesin

Strauss Group C.E.O.

4

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SLIDE 5

Q1 2017 Financial Highlights

NIS mm; Non-GAAP

5

(1)

Q1'17 Sales: NIS 2083mm; growth: 10.8% Q1'17 Organic growth excluding FX: 7.4% Q1'17 gross margins: 37.4% (down -120 bps vs. Q1'16) EBIT and EBIT margins: NIS 223mm (up 5%); 10.7% (down -60 bps vs. Q1'16) Net income and net margins: NIS 116mm (up 8.1%); 5.5% (down -20 bps vs. Q1'16) EPS: 1.08 (up 8.1% VS. Q1'16)

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SLIDE 6

Strauss Group– Focusing on Actively Managing our Portfolio

Q1 Highlights

6

  • Acquisition of 25.1% of TPG stake in Strauss

Coffee

  • Sale of Max Brenner to local Israeli Franchisee
  • Acquisition of additional 15% shares of Haier

Strauss Water

  • Sale of Gan Shmuel shares
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SLIDE 7

Strauss Israel – Very Strong Quarter

  • Very strong top line growth of 5.5% continues – due to product mix; strong

sales of core products and the timing of Passover

  • Market share gains continue trend of past year and rise to 12% (*)
  • Operating profitability increases a stellar 7.5%, despite the continued

implementation of extensive employee benefits

  • Operating margins rise to 12.9%
  • Innovation continues – Splendid, Milky Mouse, Danone Greek, Pro Triple Zero,

Milk drinks and Premium cookies

  • Efficiency measures help sustain margins
  • We continue to focus on delivering healthier products with less sugar, salt and

fat contents

7

* Source: Storenext

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SLIDE 8

8

New Product Launches in Q1

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SLIDE 9

Strauss Coffee – Stellar Top Line Growth of 23.3%

9

  • Organic sales growth excluding FX grow 13.2%
  • Growth attributed to increased volumes and selling prices in most geographies
  • Very strong performance in International Coffee sales; 28% top line growth and

15% EBIT growth

  • Particularly strong performance in Eastern Europe
  • Considerable market share gains in almost all geographies
  • Performance in LC vs last year has improved significantly across the P&L
  • Positive currency effect – NIS 60 million; NIS 58 million from BRL appreciation
  • 3C(1) operating profit declines 18.9% (in local currency) due to lower R&G sales
  • 3C market share in R&G continues to rise and reaches 24.9% (2) in Q1

(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: Neilsen

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SLIDE 10

International Dips and Spreads

10

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

North America

  • Whilst sales are down YoY Sabra continues to ramp up post November recall
  • Food safety remains our top priority
  • Sabra is on track to return to pre recall market share levels; currently at 56.4% for

the last 4 weeks ending May 14th

  • Obela sales in Australia up 34.5%
  • Obela on track to penetrate the European market via the Florentine platform
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SLIDE 11

Strauss Water

11

  • Water business improves on all fronts; Sales, EBIT and Cash Flows
  • Water sales continue to grow in Q1 2017 by 9.9% to NIS 125m
  • Acquisition of additional 15% shares of Haier Strauss Water
  • Sales of HSW, water JV in China, almost double to NIS 117.9 million from NIS 59.2

million in Q1 2016.

  • Net profit of HSW for 2016 was NIS30 million and net profit for Q1 2017 was NIS

9.5 million, compared to NIS 6.1 million, an increase of 55% in Q1 2016

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SLIDE 12

Shahar Florence

Strauss Group C.F.O.

12

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SLIDE 13

Q1 2017

13

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SLIDE 14

1,973 1,930 1,880 2,083 500 1000 1500 2000 Q1'14 Q1'15 Q1'16 Q1'17

  • Organic growth excluding FX : +7.4%

14

Prior to Food Law

Food Law NIS

  • 16mm

Positive translation differences = NIS 51

Strong rong Sales es Growth wth - 10.8 0.8% % in Q1 2017

Q1 2 2017 17 Consol

  • lidated

dated Sales es NIS mm;

; Non-GAAP GAAP

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SLIDE 15

2,083 961 818 160 144 100% 46% 39% 8% 7%

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

Q1 2017 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

’17/’16Gr

  • wth

’17/’16 Organic growth excl. FX 15

10.8% 23.3% 5.5%

  • 13.7%

3.3% 7.4% 13.2% 5.5%

  • 11.0%

5.7%

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SLIDE 16

1,880 2,083 143 10 51

Group sales, 9 months 2015 Net Organic Growth M&A Effect of Translation Differences Group sales, Q2 2016

Q1 Sales Bridge

16

+7.4% organic growth (1)

NIS mm; Non-GAAP; Q1’15 to Q1’16

(1) Excluding translation differences Primarily BRL (NIS 58mm)

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SLIDE 17

1,880 2,095 2,083 112 51 42 10 8 (20)

Group sales, Q1 2016 Coffee Translation differences effect* Strauss Israel M&A Other International Dips & Spreads Group sales, Q1 2017

Q1 Sales Bridge

17 Decline in sales following recall Higher volumes due to innovation, improved product mix and timing

  • f Passover

Primarily BRL Sales growth in Strauss-Water; offset by decrease in Max Brenner Sales

NIS mm; Non-GAAP; Q1’15 to Q1’16

Mainly Higher selling prices and volumes in most markets

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

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SLIDE 18

790 729 726 780 40.0% 37.8% 38.6% 37.4% 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 Q1'14 Q1'15 Q1'16 Q1'17

18

Q1 Consolidated Gross Profit and Gross Margins

NIS mm; Non-GAAP

  • excl. FX:

+5.9%

Positive translation differences NIS 11

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SLIDE 19

780 333 309 138 37.4% 40.7% 32.1% 45.4%

  • 30

70 170 270 370 470 570 670 770 870

Overall Group Strauss Israel Strauss Coffee Dips & Spreads + Other

Higher volumes, new products and continued efficiency measures, as well as favorable raw material prices offset by increase in some costs

Q1 2017 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q1’16 GP & GM

19 Increase in volumes in most countries Lower profits due to recall impact

D = 54mm D = 22mm D = 53mm D = -21mm

NIS 726 NIS 311 NIS 256 NIS 159 38.6% 32.9% 40.1% 48.7%

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SLIDE 20

204 197 213 223 10.3% 10.2% 11.3% 10.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 180 185 190 195 200 205 210 215 220 225 Q1'14 Q1'15 Q1'16 Q1'17

20

Q1 Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

  • Q1’17 / Q1’16: 5.0%
  • excluding FX : 2.7%

Increased sales in SCBV and S. Israel were offset by lower Sabra sales following recall

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SLIDE 21

Q1 EBIT Bridge

21

Total EBIT up 5.0%

NIS mm; Non-GAAP; Q1’16 to Q1’17

213 223 5 5

Operating profit,Q1'16 effect of Translation Differences EBIT growth excluding FX Operating profit, Q1'17

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SLIDE 22

223 105 91 17 10 10.7% 12.9% 9.5% 10.2%

7.1%

50 100 150 200 250

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

Q1 2017 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

Q1’16 EBIT & EBIT %

22

Sabra still affected by recall

Sales growth, volume and innovation, as well as improved sales mix and some lower MCOS

Decline in Max

  • ffset

increased Water sales

D = 10mm D = 7mm D = 11mm D = -10mm D = 2mm NIS 213 NIS 98 NIS 80 NIS 27 NIS 8 14.6% 5.6% 11.3% 10.2% 12.7%

Sales growth, volume and price in most geographies

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SLIDE 23

258 252 269 278 13.1% 13.0% 14.3% 13.4% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 19.0% 50 100 150 200 250 300 Q1'14 Q1'15 Q1'16 Q1'17

23

Q1 2017 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

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SLIDE 24

Q1 2017 EBITDA and EBITDA Margins

NIS mm; Non-GAAP; % Margin

Q1’16 EBITDA and EBITDA Margins

24

278 127 106 23 22

13.4% 15.6% 11.0% 14.1% 15.4%

50 100 150 200 250 300

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

D = 9mm D = 5mm D = 12mm D = -10mm D = 2mm

NIS 269 NIS 122 NIS 94 NIS 33 NIS 20 17.7% 14.3% 12.1% 15.7% 14.2%

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SLIDE 25

284 347 350 288

  • 50

100 150 200 250 300 350 400 Q1'14 Q1'15 Q1'16 Q1'17

Sabra Q1 Snapshot

NIS mm; Non-GAAP; for 100% share

Sales EBIT and EBIT Margins

Organic

  • excl. FX
  • 13.60%

25

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

38 40 61 38

13.3% 11.5% 17.4% 13.0% 0.0% 5.0% 10.0% 15.0% 20.0%

  • 10

20 30 40 50 60 70 Q1'14 Q1'15 Q1'16 Q1'17

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SLIDE 26

59 44 35

Q1'15 Q1'16 Q1'17

175 164 181 31.7% 26.1% 23.8%

Q1'15 Q1'16 Q1'17

552 630 760

Q1'15 Q1'16 Q1'17

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

Q1 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 March 31st, 2017. (1) EBIT before Other Expenses/ Income.

26

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SLIDE 27

99 102 107 116

5.0% 5.3% 5.7% 5.5%

2.5% 3.5% 4.5% 5.5% 6.5% 7.5% 8.5% 9.5% 10.5% 11.5% 90 95 100 105 110 115 120 Q1'14 Q1'15 Q1'16 Q1'17

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

NIS mm; Non-GAAP

EPS

27

0.93 0.95 1.00 1.08

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SLIDE 28

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

NIS mm; Non-GAAP; Q1’15 to Q1’16

28

107 116 10 5 (2) (4)

Net Income Q1'16 EBIT Finance exp. Taxes on income Change in Net Profit attributed to non controlling interest Net Income Q1'17

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SLIDE 29

Net Debt and Net Debt /EBITDA (LTM)

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

29

1,598 1,906 1,748 2,689

1.6x 2.0x 1.9x 2.7x

  • 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 3,000 Q1 2014 Q1 2015 Q1 2016 Q1 2017

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SLIDE 30

Q1 GAAP and Non-GAAP Financial Highlights

NIS mm

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

30

GAAP Adjusted Non-GAAP YTD 2017 YTD 2016 % Chg. YTD 2017 YTD 2016 % Chg. Sales 1,408 1,321 6.6% 2,083 1,880 10.8% Gross Profit 568 534 6.3% 780 726 7.4% GP Margin 40.3% 40.4% 37.4% 38.6% Operating Profit 201 206 (2.1%) 223 213 5.0% EBIT Margin 14.3% 15.6% 10.7% 11.3% Net Profit (to SH) 107 104 3.4% 116 107 8.1% NP Margin 7.6% 7.8% 5.5% 5.7% Operating Cash Flow (58) (53) (86) (26) Capex (1) (43) (39) (61) (56) Net debt 2,348 1,612 2,689 1,748 Change in WC (CF) (197) (108) (278) (144)

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SLIDE 31

31

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

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SLIDE 32

Appendix

32

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SLIDE 33

Appendix

Strauss Group

33

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SLIDE 34

34

Local Currencies vs. the NIS

Current exchange rate as of December 31st, 2017.

USD EUR AUD RON RSD CHF CAD PLN BRL CNY RUB GBP UAH MXN Q1'17/1'16

  • 4.4%
  • 7.7%

0.4%

  • 8.3%
  • 8.5%
  • 5.4%
  • 0.9%
  • 6.9%

18.6%

  • 9.1%

21.0%

  • 17.3%
  • 9.5%
  • 15.2%
  • 20.0%
  • 15.0%
  • 10.0%
  • 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

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

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SLIDE 35

35

Local Currencies vs. the USD

Current exchange rate as of December 31st, 2017.

ILS RON RSD PLN BRL RUB UAH Q1'17/1'16 4.6%

  • 4.1%
  • 4.3%
  • 2.6%

24.0% 26.5%

  • 5.3%
  • 10.0%
  • 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

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

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SLIDE 36

Appendix

Strauss Israel

36

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SLIDE 37

Strauss Israel Non-GAAP Financial Highlights Q1 2017 NIS mm

37

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

Strauss Israel (Non GAAP) Q1 2017 Q1 2016 % Chg. Revenue: H&W 486 474 2.6% F&I 332 302 10.0% Total Revenue 818 776 5.5% Total Gross Profit 333 311 7.0%

Gross Margins

40.7% 40.1% 0.6%

EBIT: H&W 53 51 4.4%

Margins

10.9% 10.7% 0.2%

F&I 52 47 10.8%

Margins

15.8% 15.7% 0.1%

Total EBIT 105 98 7.5%

Margins

12.9% 12.7% 0.2%

EBITDA: H&W 67 66 1.5%

Margins

13.7% 13.9% (0.2%)

F&I 60 56 7.8%

Margins

18.3% 18.7% (0.4%)

Total EBITDA 127 122 4.4%

Margins

15.6% 15.7% (0.1%)

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SLIDE 38

790 753 776 818

  • 100

200 300 400 500 600 700 800 900 Q1'14 Q1'15 Q1'16 Q1'17

Q1 Strauss Israel Sales – Strongest First Quarter

NIS mm; Non-GAAP

38

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SLIDE 39

Q1 Strauss Israel EBIT and EBIT Margins

NIS mm; Non-GAAP

39

98 92 98 105 12.4% 12.2% 12.7% 12.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

  • 20

40 60 80 100 120 Q1'13 Q1'14 Q1'15 Q1'16

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SLIDE 40

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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

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SLIDE 41

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

2015 Avg. 374 2014 Avg. 440 2017 Avg. 524 2016 Avg. 500

Futures

Sugar

100 200 300 400 500 600 700 800 Oct-18 Aug-18 Mar-18 Oct-17 Apr 10, 2017 Mar 15, 2017 Feb 17, 2017 Jan 24, 2017 Dec 28, 2016 Nov 30, 2016 Nov 04, 2016 Oct 11, 2016 Sep 15, 2016 Aug 19, 2016 Jul 26, 2016 Jun 30, 2016 Jun 06, 2016 May 10, 2016 Apr 13, 2016 Mar 16, 2016 Feb 19, 2016 Jan 26, 2016 Dec 30, 2015 Dec 04, 2015 Nov 10, 2015 Oct 15, 2015 Sep 21, 2015 Aug 25, 2015 Jul 30, 2015 06.07.2015 10.06.2015 14.05.2015 Apr 17, 2015 Mar 20, 2015 Feb 24, 2015 Jan 29, 2015 Jan 05, 2015 Dec 05, 2014 Nov 11, 2014 Oct 17, 2014 Sep 23, 2014 Aug 28, 2014 Aug 03, 2014 Jul 09, 2014 Jun 16, 2014 May 20, 2014 Apr 24, 2014 Mar 27, 2014 Mar 03, 2014 Feb 05, 2014 Jan 10, 2014 Dec 16, 2013 Nov 21, 2013 Oct 28, 2013 Oct 02, 2013 Sep 06, 2013 Aug 12, 2013 Jul 17, 2013 Jun 21, 2013 May 28, 2013 Apr 30, 2013 Apr 04, 2013 Mar 07, 2013 Feb 11, 2013 Jan 17, 2013

Futures

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SLIDE 42

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

2015 Avg. 2,101 2014 Avg. 1,923 2017 Avg. 1,674 2016 Avg. 2,188

Cocoa

Futures

500 1000 1500 2000 2500 3000 Dec-18 Sep-18 May-18 Dec-17 Jul-17 Apr 06, 2017 Mar 10, 2017 Feb 13, 2017 Jan 17, 2017 Dec 16, 2016 Nov 21, 2016 Oct 25, 2016 Sep 28, 2016 Sep 01, 2016 Aug 04, 2016 Jul 08, 2016 Jun 13, 2016 May 16, 2016 Apr 18, 2016 Mar 18, 2016 Feb 22, 2016 Jan 26, 2016 Dec 30, 2015 Dec 03, 2015 Nov 06, 2015 Oct 12, 2015 Sep 15, 2015 Aug 18, 2015 Jul 22, 2015 25.06.2015 29.05.2015 30.04.2015 Apr 01, 2015 Mar 05, 2015 Feb 06, 2015 Jan 12, 2015 Dec 15, 2014 Nov 21, 2014 Oct 27, 2014 Oct 01, 2014 Sep 04, 2014 Aug 07, 2014 Jul 14, 2014 Jun 18, 2014 May 21, 2014 Apr 24, 2014 Mar 26, 2014 Feb 27, 2014 Jan 31, 2014 Jan 06, 2014 Dec 09, 2013 Nov 13, 2013 Oct 17, 2013 Sep 20, 2013 Aug 23, 2013 Jul 29, 2013 Jul 02, 2013 Jun 05, 2013 May 08, 2013 Apr 10, 2013 Mar 12, 2013 Feb 13, 2013 Jan 18, 2013

Futures

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SLIDE 43

Appendix

Strauss Coffee

43

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SLIDE 44

Strauss Coffee Non-GAAP Financial Highlights

Q1 2017 NIS mm

44

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) Q1 2017 Q1 2016 % Chg. Revenue: Israel 212 194 9.1% International 749 586 28.0% Total Revenue 961 780 23.3% Total Gross Profit 309 256 20.5%

Gross Margins

32.1% 32.9% (0.8%)

EBIT: Israel 40 35 13.6%

Margins

18.9% 18.1% 0.7%

International 51 45 15.2%

Margins

6.8% 7.6% (0.8%)

Total EBIT 91 80 14.5%

Margins

9.5% 10.2% (0.7%)

EBITDA: Israel 43 38 13.4%

Margins

20.2% 19.5% 0.7%

International 63 56 12.0%

Margins

8.4% 9.7% (1.3%)

Total EBITDA 106 94 12.5%

Margins

11.0% 12.1% (1.1%)

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SLIDE 45

Strauss Coffee Non-GAAP Sales by Geography

FY 2017 & Q1 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.

45

Strauss Coffee Sales % Change Q1 2017 Q1 2016 NIS Local Currency Israel 212 194 9.1% 9.1% International: Três Corações Joint Venture (Brazil) 450 316 42.6% 20.5% CIS 148 121 21.8% 9.6% Poland 74 67 10.3% 18.6% Romania 51 62 (17.6%) (10.0%) Serbia 26 20 34.6% 47.6% Total International 749 586 28.0% 16.1% Total Coffee 961 780 23.3% 14.5%

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SLIDE 46

866 846 780 961

  • 200

400 600 800 1,000 1,200 Q1'14 Q1'15 Q1'16 Q1'17

Q1 2017 Strauss Coffee Sales

NIS mm; Non-GAAP

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

Organic growth +13.2%

46

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SLIDE 47

90 86 80 91 10.4% 10.2% 10.2% 9.5% 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 90 100 Q1'14 Q1'15 Q1'16 Q1'17

Q1 Strauss Coffee EBIT and EBIT Margins

NIS mm; Non-GAAP

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

47

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SLIDE 48

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

2015 Avg. 1,715 2014 Avg. 2,003 2017 Avg. 2,168 2016 Avg. 1,742

Futures

Robusta

500 1000 1500 2000 2500 3000 Nov-18 Sep-18 May-18 Jan-18 Nov-17 Jul-17 Apr 10, 2017 Mar 16, 2017 Feb 21, 2017 Jan 27, 2017 Jan 05, 2017 Dec 08, 2016 Nov 15, 2016 Oct 21, 2016 Sep 28, 2016 Sep 05, 2016 Aug 10, 2016 Jul 18, 2016 Jun 23, 2016 May 31, 2016 May 05, 2016 Apr 11, 2016 Mar 14, 2016 Feb 18, 2016 Jan 26, 2016 Jan 04, 2016 Dec 09, 2015 Nov 16, 2015 Oct 22, 2015 Sep 29, 2015 Sep 04, 2015 Aug 11, 2015 17.07.2015 24.06.2015 01.06.2015 06.05.2015 Apr 10, 2015 Mar 16, 2015 Feb 19, 2015 Jan 27, 2015 Jan 02, 2015 Dec 10, 2014 Nov 19, 2014 Oct 27, 2014 Oct 02, 2014 Sep 09, 2014 Aug 14, 2014 Jul 23, 2014 Jul 01, 2014 Jun 06, 2014 May 13, 2014 Apr 16, 2014 Mar 24, 2014 Feb 27, 2014 Feb 04, 2014 Jan 10, 2014 Dec 17, 2013 Nov 24, 2013 Oct 31, 2013 Oct 08, 2013 Sep 13, 2013 Aug 20, 2013 Jul 26, 2013 Jul 03, 2013 Jun 10, 2013 May 15, 2013 Apr 19, 2013 Mar 25, 2013 Feb 28, 2013 Feb 05, 2013 Jan 14, 2013

Futures

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SLIDE 49

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

2015 Avg. 134 2014 Avg. 178 2017 Avg. 144 2016 Avg. 136

Arabica

50 100 150 200 250 300 Dec-18 Sep-18 May-18 Dec-17 Jul-17 Apr 13, 2017 Mar 20, 2017 Feb 22, 2017 Jan 26, 2017 Dec 29, 2016 Dec 02, 2016 Nov 07, 2016 Oct 12, 2016 Sep 16, 2016 Aug 22, 2016 Jul 27, 2016 Jun 30, 2016 Jun 06, 2016 May 10, 2016 Apr 14, 2016 Mar 18, 2016 Feb 23, 2016 Jan 27, 2016 Dec 29, 2015 Dec 02, 2015 Nov 05, 2015 Oct 12, 2015 Sep 16, 2015 Aug 20, 2015 Jul 27, 2015 30.06.2015 04.06.2015 08.05.2015 Apr 14, 2015 Mar 18, 2015 Feb 20, 2015 Jan 26, 2015 Dec 29, 2014 Dec 07, 2014 Nov 13, 2014 Oct 20, 2014 Sep 24, 2014 Aug 28, 2014 Aug 04, 2014 Jul 10, 2014 Jun 16, 2014 May 20, 2014 Apr 25, 2014 Mar 31, 2014 Mar 05, 2014 Feb 06, 2014 Jan 10, 2014 Dec 16, 2013 Nov 20, 2013 Oct 25, 2013 Oct 01, 2013 Sep 05, 2013 Aug 09, 2013 Jul 16, 2013 Jun 20, 2013 May 24, 2013 Apr 30, 2013 Apr 04, 2013 Mar 08, 2013 Feb 11, 2013 Jan 16, 2013

Futures

slide-50
SLIDE 50

NY Arabica and Brazil Arabica

Indexed since 31.5.2012

Source : Bloomberg

50

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

slide-51
SLIDE 51

Appendix

Sabra & Obela

51

slide-52
SLIDE 52

Strauss D&S Non-GAAP Financial Highlights

Q1 2017 NIS mm; 50% share

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

52

Dips & Spreads (Non GAAP) Q1 2017 Q1 2016 % Chg. Revenue: Sabra (50%) 144 175 (17.7%) Obela (50%) 16 10 54.2% Total Revenue 160 185 (13.7%) EBIT: Sabra (50%) 19 30 (38.3%)

Margins

13.0% 17.4% (4.4%)

Obela (50%) (2) (3)

NM

Margins

NM NM NM

Total EBIT 17 27 (39.9%)

Margins

10.2% 14.6% (4.4%)

Total EBITDA 23 33 (31.2%)

Margins

14.1% 17.7% (3.6%)

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SLIDE 53

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

53

2017 Avg. 1,213 2015 Avg. 1,324 2016 Avg. 1,109 2014 Avg. 2,121

500 1000 1500 2000 2500 3000
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SLIDE 54

Appendix

Strauss Water

54

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SLIDE 55

137 120 114 125

  • 20

40 60 80 100 120 140 160 Q1'14 Q1'15 Q1'16 Q1'17

Q1 2017 Strauss Water Non-GAAP Sales

Non-GAAP; NIS mm

55

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SLIDE 56

Appendix

Max Brenner

56

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SLIDE 57

29 28 25 18

  • 5

10 15 20 25 30 35 Q1'14 Q1'15 Q1'16 Q1'17

Q1 2017 Max Brenner Sales

Non-GAAP; NIS mm

Decline excluding FX: -24.5%

57