STRAUSS GROUP May 23 rd , 2018 Q1 2018 Earnings Presentation - - PowerPoint PPT Presentation

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STRAUSS GROUP May 23 rd , 2018 Q1 2018 Earnings Presentation - - PowerPoint PPT Presentation

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STRAUSS GROUP May 23 rd , 2018 Q1 2018 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.

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SLIDE 1

STRAUSS GROUP

May 23rd, 2018

Q1 2018 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 Q1'16 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.

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SLIDE 4

Giora Bardea

Strauss Group Interim C.E.O.

4

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SLIDE 5

Q1 2018 Financial Highlights

NIS mm; Non-GAAP

5

(1)

Q1'18 Sales: NIS 2167mm; growth: 4% Q1'18 Organic growth excluding FX: 7.8% Q1'18 gross margins: 38.4% (up 100 bps vs. Q1'17) EBIT and EBIT margins: NIS 254mm (up 14%); 11.7% (up 100 bps vs. Q1'17) Net income and net margins: NIS 146mm (up 26.9%); 6.8% (up 130 bps vs. Q1'17) EPS: 1.28 (up 18.8% VS. Q1'17) The group declared dividend of NIS 160mm (NIS 1.39 per share) to be paid on June 10th

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SLIDE 6

Strauss Israel – Another Stellar Quarter; Market Share Expands to 12.2%

  • Innovation continues to drive top line growth of 5.8% during the quarter
  • Once again growth achieved due to innovation and new distribution

agreements

  • Market share continues to expand to 12.2% for the quarter with significant

strides across most categories

  • Gross margins erode predominantly due to higher milk prices
  • We continue to focus on delivering healthier products with less sugar, salt and

fat contents

6

* Source: Storenext

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SLIDE 7

Strauss Coffee – Q1 2018 EBIT expands by 30%

7

  • Strong top line growth continues in Q1 up 7.0% in local currencies, 2.5% in NIS
  • Growth in Q1 2018 is attributed mainly to increased volumes in Brazil, Israel and

Poland

  • Brazil 3C(1) continues to lead growth with 16.6% increase in local currency for the

quarter

  • Currency negatively impacted the quarter by NIS 40 million; mainly due to BRL

depreciation of NIS 46 million;

  • 3C(1) market share in Brazil R&G was 27% (2) at the end of Q1 2018

(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

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SLIDE 8

International Dips and Spreads

8

  • Sales improve in Q1 by 13% to NIS180 million
  • Hummus market share in North America continue to rise towards pre-recall level

and was at 59.4% for the quarter

  • Obela operations in Australia continue to outperform and in Q1 2018 grew 30% in

local currency

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

North America

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SLIDE 9

Strauss Water

9

  • In Q1 Strauss Water continued the strong momentum of the previous quarters

with top line growth of 7.6% (excluding HSW)

  • Sales of HSW (100%), water JV in China, grew by 3% (2.7% excluding FX) in Q1

2018 to NIS 121 million up from NIS 118 million in Q1 2017

  • The relatively low growth rate is due to the delayed launch of new products in

2018 and due to a decision to exclude products with low profitability as well as a salesforce reorganization including the introduction of new sales channels

  • Net profits at HSW for the first quarter 2018 were NIS 7 million compared to NIS

10 million in Q1 2017

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SLIDE 10

Shahar Florence

Strauss Group C.F.O.

10

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SLIDE 11

Q1 2018

11

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SLIDE 12

1,930 1,880 2,083 2,167 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 Q1'15 Q1'16 Q1'17 Q1'18

  • Organic growth excluding FX : +7.8%

12

Negative translation differences = NIS 51

Strong Sales Growth Continues - 4.0% in Q1

Q1 2018 Consolidated Sales NIS mm; Non-GAAP

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SLIDE 13

2,167 986 866 180 135 100% 46% 40% 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 Water Other

Q1 2018 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

'18/'17 Growth '18/'17 Organic growth excl. FX 13

4.0% 2.5% 5.8% 13.0% 7.6%

  • 100%

7.8% 7.3% 5.8% 21.3% 7.5% na

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SLIDE 14

2,083 2,167 156 (21) (51)

Group sales, Q1 2017 Net Organic Growth M&A Effect of Translation Differences * Group sales, Q1 2018

Q1 Sales Bridge

14

+7.8% organic growth (1)

NIS mm; Non-GAAP; Q1’17 to Q1’18

(1) Excluding FX

Primarily due to the weakening of the BRL NIS -46mm and the USD NIS -11mm, offset by a stronger Polish Zloty NIS 8mm Due mainly to the disposal

  • f Max

Brenner

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SLIDE 15

2,083 2,218.1 2,167 67 48 32 9 (21) (51)

Group sales, Q1 2017 Coffee Strauss Israel International Dips & Spreads Other M&A Effect of Translation Differences * Group sales, Q1 2018

Q1 Sales Bridge

15

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

NIS mm; Non-GAAP; Q1’17 to Q1’18

Higher volumes in Brazil, Israel and Poland, partially

  • ffset by lower

volumes in CIS and Romania

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

Mainly Max Brenner disposal Primarily due to the weakening of the BRL NIS -46mm and the USD NIS -11mm, offset by a stronger Polish Zloty NIS 8mm

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SLIDE 16

729 726 780 833 37.8% 38.6% 37.4% 38.4% 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 Q1'15 Q1'16 Q1'17 Q1'18

16

Q1 Consolidated Gross Profit and Gross Margins

NIS mm; Non-GAAP

  • Excl. FX:

8.5%

Negative translation differences NIS -12

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SLIDE 17

833 341 352 140 38.4% 39.4% 35.7% 44.4%

  • 100

200 300 400 500 600 700 800 900

Overall Group Strauss Israel Strauss Coffee Dips & Spreads + Other

Higher volumes, negatively impacted by higher milk price

Q1 2018 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q1’17 GP & GM

17

Lower green coffee prices and higher selling volumes Higher Water profits offset by lower Sabra profits

D = 53mm D = 8mm D = 43mm D = 2mm

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

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SLIDE 18

197 213 223 254 10.2% 11.3% 10.7% 11.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 50 100 150 200 250 300 Q1'15 Q1'16 Q1'17 Q1'18

18

Q1 Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

  • Q1’18 / Q1’17: 14.0%
  • excluding FX : 16.0%

Increased sales and significant margin improvement in Coffee

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SLIDE 19

Q1 EBIT Bridge

19

Total EBIT up 14.0%

NIS mm; Non-GAAP; Q1’17 to Q1’18 223 254 35 (4)

Operating profit, first quarter 2017 EBIT growth excluding FX effect of Translation Differences Operating profit, first quarter 2018

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SLIDE 20

D = 31mm D = 4mm D = 28mm D = -6mm D = 4mm D = 1mm NIS 223 NIS 105 NIS 91 NIS 17 NIS 6 NIS 4 21.2% 10.2% 5.1% 10.7% 9.5% 12.9%

254 109 119 11 10 5

11.7% 12.6% 12.0%

6.3%

7.2%

50 100 150 200 250

Overall Group Strauss Isarel Strauss Coffee Dips & Spreads Water Other

Q1 2018 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

Q1’17 EBIT & EBIT %

20

Sabra still affected by new maintenance procedures since recall Sales growth, volume, innovation and continued efficiency improvement,

  • ffset by GP erosion

Water margins continue to improve Sales growth and significant margin improvement in Brazil

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SLIDE 21

252 269 278 311 13.0% 14.3% 13.4% 14.4% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 19.0% 50 100 150 200 250 300 350 Q1'15 Q1'16 Q1'17 Q1'18

21

Q1 2018 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

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SLIDE 22

D = 33mm D = 5mm D = 30mm D = -5mm D = 3mm D = 0mm

NIS 278 NIS 127 NIS 106 NIS 23 NIS 12 NIS 10 na 14.1% 13.4% 11.0% 15.6% 9.7%

Q1 2018 EBITDA and EBITDA Margins

NIS mm; Non-GAAP; % Margin

Q1’17 EBITDA and EBITDA Margins

22

311 132 136 18 15 10

14.4% 15.3% 13.8% 9.9%

10.8%

na

50 100 150 200 250 300

Overall Group Strauss Israel Strauss Coffee D&S Water Other

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SLIDE 23

347 350 288 322

  • 50

100 150 200 250 300 350 400 Q1'15 Q1'16 Q1'17 Q1'18

40 61 38 29

11.5% 17.4% 13.0% 8.9% 0.0% 5.0% 10.0% 15.0% 20.0%

  • 10

20 30 40 50 60 70 Q1'15 Q1'16 Q1'17 Q1'18

Sabra Q1 Snapshot

NIS mm; Non-GAAP; for 100% share

Sales EBIT and EBIT Margins

Organic excl. FX 20.8% 23

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

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SLIDE 24

630 760 885

Q1'16 Q1'17 Q1'18

164 181 254 26.1% 23.8% 28.7%

Q1'16 Q1'17 Q1'18

44 35 83

Q1'16 Q1'17 Q1'18

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, 2018. (1) EBIT before Other Expenses/ Income.

24

6.9% 4.6% 9.4%

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SLIDE 25

102 107 116 146

5.3% 5.7% 5.5% 6.8%

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 Q1'15 Q1'16 Q1'17 Q1'18

0.95 1.00 1.08 1.28

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

NIS mm; Non-GAAP

EPS

25

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SLIDE 26

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

NIS mm; Non-GAAP; Q1'16 to Q1’17

26

116 146 31 17 16 (34)

Net Income Q1 2017 EBIT Finance exp. Non controlling interest Taxes on income Net Income Q1 2018

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SLIDE 27

Net Debt and Net Debt /EBITDA (LTM)

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

27

1,906 1,748 2,689 2,082

2.0x 1.9x 2.7x 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 3,000 Q1 2015 Q1 2016 Q1 2017 Q1 2018

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SLIDE 28

Q1 GAAP and Non-GAAP Financial Highlights

NIS mm

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

28

Adjusted Non-GAAP Q1 2018 Q1 2017 % Chg. Sales 2,167 2,083 4.0% Gross Profit 833 780 6.8% GP Margin 38.4% 37.4% Operating Profit 254 223 14.0% EBIT Margin 11.7% 10.7% Net Profit (to SH) 146 116 26.9% NP Margin 6.8% 5.5% Operating Cash Flow 106 (86) Capex (1) (70) (61) Net debt 2,082 2,689 Change in WC (CF) (157) (278)

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SLIDE 29

29

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 30

Appendix

30

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SLIDE 31

Appendix

Strauss Group

31

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SLIDE 32

32

Local Currencies vs. the NIS

Current exchange rate as of June 30th, 2018.

BRL UAH USD RUB AUD CAD CHF CNY MXN RON GBP EUR PLN RSD Q1'18/Q1'17 -10.2%

  • 8.0%
  • 7.3%
  • 4.1%
  • 3.8%
  • 2.8%
  • 1.7%

0.4% 0.6% 3.9% 4.3% 7.1% 10.7% 12.0%

  • 15.0%
  • 10.0%
  • 5.0%

0.0% 5.0% 10.0% 15.0%

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

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SLIDE 33

33

Local Currencies vs. the USD

Current exchange rate as of June 30th, 2018.

BRL UAH RUB ILS RON PLN RSD Q1'18/Q1'17

  • 3.2%
  • 0.8%

3.4% 7.8% 12.0% 19.3% 20.8%

  • 5.0%

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

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

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SLIDE 34

Appendix

Strauss Israel

34

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SLIDE 35

Strauss Israel Non-GAAP Financial Highlights Q1 2018 NIS mm

35

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 2018 Q1 2017 % Chg. Revenue: H&W 532 486 9.4% F&I 334 332 0.6% Total Revenue 866 818 5.8% Total Gross Profit 341 333 2.3%

Gross Margins

39.4% 40.7% (1.3%)

EBIT: H&W 54 53 2.0%

Margins

10.2% 10.9% (0.7%)

F&I 55 52 4.8%

Margins

16.4% 15.8% 0.6%

Total EBIT 109 105 3.4%

Margins

12.6% 12.9% (0.3%)

EBITDA: H&W 68 67 2.0%

Margins

12.8% 13.7% (0.9%)

F&I 64 60 6.0%

Margins

19.3% 18.3% 1.0%

Total EBITDA 132 127 3.9%

Margins

15.3% 15.6% (0.3%)

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SLIDE 36

753 776 818 866

  • 100

200 300 400 500 600 700 800 900 1,000 Q1'15 Q1'16 Q1'17 Q1'18

Q1 Strauss Israel Sales

NIS mm; Non-GAAP

36

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SLIDE 37

92 98 105 109 12.2% 12.7% 12.9% 12.6% 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 Q1'14 Q1'15 Q1'16 Q1'18

Q1 Strauss Israel EBIT and EBIT Margins

NIS mm; Non-GAAP

37

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SLIDE 38

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 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 Q2

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SLIDE 39

London Sugar Historical & Futures Prices 2015-2018 ($\T)

2015 Avg. 374 2017 Avg. 433 2018 Avg. 360 2016 Avg. 500

Futures

Sugar

100 200 300 400 500 600 700 800 Oct-19 Aug-19 May-19 Mar-19 Feb-19 Nov-18 Apr 11, 2018 Mar 13, 2018 Feb 14, 2018 Jan 18, 2018 Dec 19, 2017 Nov 22, 2017 Oct 26, 2017 Sep 29, 2017 Sep 04, 2017 Aug 07, 2017 Jul 11, 2017 Jun 14, 2017 May 18, 2017 Apr 20, 2017 Mar 22, 2017 Feb 23, 2017 Jan 27, 2017 Dec 30, 2016 Dec 01, 2016 Nov 04, 2016 Oct 10, 2016 Sep 13, 2016 Aug 16, 2016 Jul 20, 2016 Jun 23, 2016 May 26, 2016 Apr 28, 2016 Apr 01, 2016 Mar 03, 2016 Feb 05, 2016 Jan 11, 2016 Dec 14, 2015 Nov 17, 2015 Oct 21, 2015 Sep 24, 2015 Aug 27, 2015 Jul 31, 2015 06 07 2015 09 06 2015 12 05 2015 Apr 14, 2015 Mar 16, 2015 Feb 17, 2015 Jan 21, 2015 Dec 22, 2014 Nov 25, 2014 Oct 29, 2014 Oct 03, 2014 Sep 08, 2014 Aug 11, 2014 Jul 16, 2014 Jun 20, 2014 May 23, 2014 Apr 28, 2014 Mar 28, 2014 Mar 03, 2014 Feb 04, 2014 Jan 08, 2014

Futures

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SLIDE 40

London Cocoa Historical & Futures Prices 2015-2018 (GBP\T)

2015 Avg. 2,101 2018 Avg. 1,708 2017 Avg. 1,771 2016 Avg. 2,188

Cocoa

500 1000 1500 2000 2500 3000 Oct-19 Aug-19 May-19 Apr-19 Feb-19 Sep-18 May-18 Mar 28, 2018 Mar 01, 2018 Feb 02, 2018 Jan 05, 2018 Dec 07, 2017 Nov 09, 2017 Oct 13, 2017 Sep 18, 2017 Aug 21, 2017 Jul 25, 2017 Jun 28, 2017 Jun 01, 2017 May 05, 2017 Apr 05, 2017 Mar 09, 2017 Feb 10, 2017 Jan 16, 2017 Dec 15, 2016 Nov 18, 2016 Oct 24, 2016 Sep 27, 2016 Aug 31, 2016 Aug 03, 2016 Jul 07, 2016 Jun 10, 2016 May 13, 2016 Apr 15, 2016 Mar 17, 2016 Feb 19, 2016 Jan 25, 2016 Dec 29, 2015 Dec 02, 2015 Nov 05, 2015 Oct 09, 2015 Sep 14, 2015 Aug 17, 2015 Jul 21, 2015 24 06 2015 28 05 2015 29 04 2015 Mar 31, 2015 Mar 04, 2015 Feb 05, 2015 Jan 09, 2015 Dec 14, 2014 Nov 20, 2014 Oct 27, 2014 Sep 30, 2014 Sep 03, 2014 Aug 06, 2014 Jul 11, 2014 Jun 17, 2014 May 20, 2014 Apr 23, 2014 Mar 25, 2014 Feb 26, 2014 Jan 30, 2014 Jan 03, 2014

Futures

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SLIDE 41

Appendix

Strauss Coffee

41

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SLIDE 42

Strauss Coffee Non-GAAP Financial Highlights

Q1 2018 NIS mm

42

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 2018 Q1 2017 % Chg. Revenue: Israel 217 212 2.0% International 769 749 2.7% Total Revenue 986 961 2.5% Total Gross Profit 352 309 14.0%

Gross Margins

35.7% 32.1% 3.6%

EBIT: Israel 41 40 3.1%

Margins

19.0% 18.9% 0.1%

International 78 51 51.2%

Margins

10.1% 6.8% 3.3%

Total EBIT 119 91 30.1%

Margins

12.0% 9.5% 2.5%

EBITDA: Israel 45 43 3.8%

Margins

20.6% 20.2% 0.4%

International 91 63 44.4%

Margins

11.9% 8.4% 3.5%

Total EBITDA 136 106 28.0%

Margins

13.8% 11.0% 2.8%

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SLIDE 43

Strauss Coffee Non-GAAP Sales by Geography

Q1 2018 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.

43

Strauss Coffee Sales % Change Q1 2018 Q1 2017 NIS Local Currency Israel 217 212 2.0% 2.0% International: Três Corações Joint Venture (Brazil) 472 450 4.7% 16.6% CIS 133 148 (9.8%) (5.0%) Poland 84 74 14.7% 3.6% Romania 50 51 (2.9%) (6.7%) Serbia 30 26 15.1% 2.1% Total International 769 749 2.7% 8.5% Total Coffee 986 961 2.5% 7.0%

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SLIDE 44

846 780 961 986

  • 200

400 600 800 1,000 1,200 Q1'15 Q1'16 Q1'17 Q1'18

Q1 2018 Strauss Coffee Sales

NIS mm; Non-GAAP

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

Excl FX+7.0%

44

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SLIDE 45

86 80 91 119 10.2% 10.2% 9.5% 12.0% 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 80 100 120 140 Q1'15 Q1'16 Q1'17 Q1'18

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).

45

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SLIDE 46

Robusta Historical & Futures Prices 2015-2018 ($\T)

2015 Avg. 1,715 2018 Avg. 1,773 2017 Avg. 2,038 2016 Avg. 1,742

Futures

Robusta

500 1000 1500 2000 2500 3000 May-19 Mar-19 Jan-19 Sep-18 Jul-18 Apr 13, 2018 Mar 19, 2018 Feb 22, 2018 Jan 30, 2018 Jan 04, 2018 Dec 07, 2017 Nov 13, 2017 Oct 19, 2017 Sep 26, 2017 Sep 01, 2017 Aug 08, 2017 Jul 14, 2017 Jun 21, 2017 May 29, 2017 May 04, 2017 Apr 06, 2017 Mar 14, 2017 Feb 17, 2017 Jan 25, 2017 Jan 03, 2017 Dec 06, 2016 Nov 11, 2016 Oct 19, 2016 Sep 26, 2016 Sep 01, 2016 Aug 08, 2016 Jul 14, 2016 Jun 21, 2016 May 26, 2016 May 03, 2016 Apr 07, 2016 Mar 10, 2016 Feb 16, 2016 Jan 22, 2016 Dec 30, 2015 Dec 07, 2015 Nov 12, 2015 Oct 20, 2015 Sep 25, 2015 Sep 02, 2015 Aug 07, 2015 15 07 2015 22 06 2015 28 05 2015 01 05 2015 Apr 08, 2015 Mar 12, 2015 Feb 17, 2015 Jan 23, 2015 Dec 30, 2014 Dec 08, 2014 Nov 17, 2014 Oct 23, 2014 Sep 30, 2014 Sep 05, 2014 Aug 12, 2014 Jul 21, 2014 Jun 27, 2014 Jun 04, 2014 May 11, 2014 Apr 14, 2014 Mar 20, 2014 Feb 25, 2014 Jan 31, 2014 Jan 08, 2014

Futures

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SLIDE 47

Arabica Historical & Futures Prices 2015-2018 (Cent\Lb)

2015 Avg. 134 2018 Avg. 121 2017 Avg. 133 2016 Avg. 136

Arabica

50 100 150 200 250 300 May-19 Mar-19 Sep-18 May-18 Apr 02, 2018 Mar 06, 2018 Feb 07, 2018 Jan 11, 2018 Dec 14, 2017 Nov 17, 2017 Oct 24, 2017 Sep 28, 2017 Sep 01, 2017 Aug 08, 2017 Jul 13, 2017 Jun 16, 2017 May 22, 2017 Apr 26, 2017 Mar 30, 2017 Mar 06, 2017 Feb 07, 2017 Jan 11, 2017 Dec 14, 2016 Nov 17, 2016 Oct 24, 2016 Sep 28, 2016 Sep 01, 2016 Aug 08, 2016 Jul 13, 2016 Jun 16, 2016 May 20, 2016 Apr 26, 2016 Mar 31, 2016 Mar 04, 2016 Feb 08, 2016 Jan 11, 2016 Dec 14, 2015 Nov 17, 2015 Oct 22, 2015 Sep 28, 2015 Sep 01, 2015 Aug 06, 2015 13 07 2015 16 06 2015 20 05 2015 Apr 24, 2015 Mar 30, 2015 Mar 04, 2015 Feb 05, 2015 Jan 09, 2015 Dec 16, 2014 Nov 25, 2014 Oct 30, 2014 Oct 06, 2014 Sep 10, 2014 Aug 14, 2014 Jul 22, 2014 Jun 26, 2014 Jun 02, 2014 May 07, 2014 Apr 10, 2014 Mar 17, 2014 Feb 19, 2014 Jan 23, 2014

Futures

slide-48
SLIDE 48

NY Arabica and Brazil Arabica

Indexed since 15.5.2013

Source : Bloomberg

48

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

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SLIDE 49

Appendix

Sabra & Obela

49

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SLIDE 50

Strauss D&S Non-GAAP Financial Highlights

Q1 2018 NIS mm; 50% share

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

50

Dips & Spreads (Non GAAP) Q1 2018 Q1 2017 % Chg. Revenue: Sabra (50%) 160 144 11.8% Obela (50%) 20 16 24.0% Total Revenue 180 160 13.0% EBIT: Sabra (50%) 14 19 (24.0%)

Margins

8.9% 13.0% (4.1%)

Obela (50%) (3) (2)

NM

Margins

NM NM NM

Total EBIT 11 17 (29.6%)

Margins

6.3% 10.2% (3.8%)

EBITDA: Total EBITDA 18 23 (20.8%)

Margins

9.9% 14.1% (4.2%)

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SLIDE 51

Humera Sesame Prices 2015-2018 (USD/Metric Ton)

51

2017 Avg. 1,193 2015 Avg. 1,324 2016 Avg. 1,109 2018 Avg. 1,465

500 1000 1500 2000 2500 3000
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SLIDE 52

Appendix

Strauss Water

52

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SLIDE 53

Strauss Water Non-GAAP Financial Highlights

Q1 2018 NIS mm

53

Water (Non GAAP) Q1 2018 Q1 2017 % Chg. Revenue: 135 125 7.6% EBIT: 10 6 52.2%

EBIT Margins

7.2% 5.1% 2.1%

EBITDA: 15 12 20.7%

EBITDA Margins

10.8% 9.7% 1.1%

  • Figures were rounded to NIS millions. Totals were calculated on the basis of the exact figures in NIS thousands.
slide-54
SLIDE 54

120 114 125 135 100 105 110 115 120 125 130 135 140 Q1'15 Q1'16 Q1'17 Q1'18

Q1 2018 Strauss Water Non-GAAP Sales Non-GAAP; NIS mm

54

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SLIDE 55
  • 4

3 6 10

  • 6
  • 4
  • 2
  • 2

4 6 8 10 12 Q1'15 Q1'16 Q1'17 Q1'18

Q1 2018 Strauss Water Non-GAAP EBIT Non-GAAP; NIS mm

55