STRAUSS GROUP August 7 th , 2018 H1 and Q2 2018 Earnings - - PowerPoint PPT Presentation

STRAUSS GROUP

August 7th, 2018

H1 and Q2 2018 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 Q2'17 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.

Giora Bardea

Strauss Group Interim C.E.O.

4

Q2 2018 Financial Highlights

NIS mm; Non-GAAP

5

(1)

Q2'18 Sales: NIS 2103mm; growth: 3% Q2'18 Organic growth excluding FX: 6.4% Q2'18 gross margins: 38.7% (up 180 bps vs. Q2'17) EBIT and EBIT margins: NIS 207mm (up 11.2%); 9.9% (up 80 bps vs. Q2'17) Net income and net margins: NIS 112mm (up 14%); 5.3% (up 50 bps vs. Q2'17) EPS: 0.97 (up 10.6% VS. Q2'17)

YTD 2018 Financial Highlights

NIS mm; Non-GAAP

6

(1)

YTD 2018 Sales: NIS 4270mm; growth: 3.5% YTD 2018 Organic growth excluding FX: 7.1% YTD 2018 Gross margins: 38.5% (up 130 bps vs. YTD 2017) EBIT and EBIT margins: NIS 461mm (up 12.7%); 10.8% (up 90 bps vs. YTD 2017) Net income and net margins: NIS 258mm (up 21%); 6% (up 80 bps vs. YTD 2017) EPS: 2.25 (up 15.3% VS. YTD 2017)

Strauss Israel –Outstanding Momentum Continues

• Top line growth of 5.6% during the quarter continues to surpass growth of the
• verall Food & Beverage market which grew 1.1% during the quarter (1)
• PRO product suite continues to gain strong momentum
• Market share at 12.0%
• Gross margins impacted by product mix and 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 – Q2 2018 Top Line Growth 5.5% in Local Currencies

8

• Quantities sold grew across most geographies, mainly in Brazil
• Overall top line hurt by BRL devaluation, negative impact of NIS 56 million
• Significant margin expansion in coffee across geographies due to lower green

coffee prices

• Brazil 3C(1) continues to lead growth with 7.4% increase in local currency for the

quarter and 11.5% for 2018

• 3C(1) market share in Brazil R&G was at 27.0% (2) at the end of Q2 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

International Dips and Spreads

9

• Sales continue to improve in Q2 up by 10%
• Hummus market share in North America continue to rise towards pre-recall level

and was at 60.6% at the end of June

• Sabra EBIT more than doubles to NIS 40 million (for 100% company)
• Sabra profit margins expand significantly to 11.2% from 5.6%
• Obela sales were up 19.5% during the quarter
• Market penetration efforts continue in new markets – Germany and New Zealand
• Sabra continues to be a global market leader and the no. 1 producer of Hummus in

North America

Strauss Water

10

• In Q2 Strauss Water continued the strong momentum of the previous quarters
• Sales at Strauss water (excluding HSW) are up 10.6% during the quarter, due

mainly to increased sales in Israel on the back of the Maze T launch

• Sales of HSW (100%), water JV in China, grew by 13.7% (6.2% excluding FX) in Q2

2018 to NIS 145 million from NIS 127 million in Q2 2017 and by 8.5% in 1H 2018 to NIS 266 million from NIS 245 million in 1H 2017 (4.5% excluding FX)

• Net profits at HSW grew by 18.7% (10.8% excluding FX) during the quarter to NIS

18 million compared to NIS 16 million in Q2 2017 and declined -3.5% (-8.1% excluding FX) in 1H 2018 to NIS 25 million compared to NIS 26 million in 1H 2017

Shahar Florence

Strauss Group C.F.O.

11

Q2 2018

12

1,839 1,933 2,042 2,103 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 Q2'15 Q2'16 Q2'17 Q2'18

• Organic growth excluding FX : +6.4%

13

Negative translation differences = NIS 53

Strong Organic Sales Growth Continues 6.4% in Q2

Q2 2018 Consolidated Sales NIS mm; Non-GAAP

2,103 978 778 197 150 100% 47% 37% 9% 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 Water Other

Q2 2018 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

'18/'17 Growth '18/'17 Organic growth excl. FX 14

3.0%

• 0.3%

5.6% 10.7% 10.6%

• 100%

6.4% 5.5% 5.6% 10.8% 10.5% na

2,042 2,114.0 2,103 51 41 19 14 (53) (11)

Group Sales, Q2 2017 Coffee Strauss Israel International Dips & Spreads Strauss Water Effect of Translation Differences * M&A Group Sales, Q2 2018

Q2 Sales Bridge

15 Higher volumes due to ongoing innovation among others Sales growth in Strauss- Water;

NIS mm; Non-GAAP; Q2’17 to Q2’18

Higher volumes in most geographies despite lower selling prices in some Max Brenner disposal Primarily due to the weakening of the BRL (NIS -56mm) Sales growth in both Sabra and Obela

125 million +6.4% organic growth

689 733 753 813 37.4% 37.9% 36.9% 38.7% 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 Q2'15 Q2'16 Q2'17 Q2'18

16

Q2 Consolidated Gross Profit and Gross Margins

NIS mm; Non-GAAP

• Excl. FX:

10.1%

Negative translation differences NIS -15

813 300 352 161 38.7% 38.6% 36.0% 46.3%

• 100

200 300 400 500 600 700 800 900

Overall Group Strauss Israel Strauss Coffee Dips & Spreads + Other

Higher volumes, affected by sales mix and higher milk price

Q2 2018 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q2’17 GP & GM

17 Increase volumes and increased profit margins in 3C (Brazil) due to lower green coffee prices Higher profits in Water and Sabra

D = 60mm D = 12mm D = 34mm D = 14mm

NIS 753 NIS 287 NIS 318 NIS 148 38.9% 46.0% 36.9% 32.4%

112 183 187 207 6.1% 9.4% 9.1% 9.9% 0.0% 5.0% 10.0% 15.0% 20.0% 50 100 150 200 250 Q2'15 Q2'16 Q2'17 Q2'18

18

Q2 Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

• Q2’18 / Q2’17: 11.2%
• excluding FX : 14.5%

Increased sales and improvement in 3C (Brazil) margins

187 207 25 (5)

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

Q2 EBIT Bridge

19

Total EBIT up 11.2%

NIS mm; Non-GAAP; Q2’17 to Q2’18

207 69 107 18 17

• 4

9.9% 8.9% 11.0% 9.3% 11.3%

• 40

10 60 110 160 210 260

Overall Group Strauss Isarel Strauss Coffee Dips & Spreads Water Other

Q2 2018 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

Q2’17 EBIT & EBIT %

20

Higher volumes and improved margins in Sabra

Sales growth, volume and innovation Sales growth, higher profit margins in 3C (Brazil), Israel and Poland

D = 20mm D = 3mm D = 6mm D = 12mm D = 5mm D = -6mm NIS 187 NIS 66 NIS 101 NIS 6 NIS 12 NIS 2 17.1% 3.6% 8.6% 9.1% 10.4% 8.9% Higher volumes and improved margins in Israel

173 239 243 264 9.4% 12.4% 11.9% 12.6% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 19.0% 50 100 150 200 250 300 Q2'15 Q2'16 Q2'17 Q2'18

21

Q2 2018 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

264 92 124 24 22 2

12.6% 11.8% 12.7% 12.6% 15.1% na

50 100 150 200 250 300

Overall Group Strauss Israel Strauss Coffee D&S Water Other

Q2 2018 EBITDA and EBITDA Margins

NIS mm; Non-GAAP; % Margin

Q2’17 EBITDA and EBITDA Margins

22

D = 21mm D = 4mm D = 6mm D = 12mm D = 5mm D = -6mm

NIS 243 NIS 88 NIS 118 NIS 12 NIS 17 NIS 8 12.5% na 7.1% 11.9% 12.0% 11.9%

347 374 325 357 300 310 320 330 340 350 360 370 380 Q2'15 Q2'16 Q2'17 Q2'18

28 54 18 40

7.9% 14.5% 5.5% 11.2% 0.0% 5.0% 10.0% 15.0% 20.0%

• 10

20 30 40 50 60 Q2'15 Q2'16 Q2'17 Q2'18

Sabra Q2 Snapshot

NIS mm; Non-GAAP; for 100% share

Sales EBIT and EBIT Margins

Organic excl. FX 10.0% 23

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

753 939 1,010

Q2'16 Q2'17 Q2'18

203 269 315 26.9% 28.7% 31.2%

Q2'16 Q2'17 Q2'18

61 108 111

Q2'16 Q2'17 Q2'18

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

Q2 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, 2018. (1) EBIT before Other Expenses/ Income.

24

8.1% 11.5% 11.0%

31 78 97 112

1.7% 4.0% 4.8% 5.3%

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

• 20

40 60 80 100 120 Q2'15 Q2'16 Q2'17 Q2'18

0.29 0.73 0.88 0.97

Q2 Net Profit (attributed to the Company’s shareholders), Net Margins and EPS

NIS mm; Non-GAAP

EPS

25

Q2 Net Profit (attributed to the Company’s shareholders) Bridge

NIS mm; Non-GAAP; Q2'17 to Q2’18

26

97 112 20 18 (22) (1)

Net Income Q2 2017 EBIT Finance exp. Taxes on income Non controlling interest Net Income Q2 2018

Net Debt and Net Debt /EBITDA (LTM)

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

27

1,833 1,574 2,138 2,143

2.0x 1.6x 2.2x 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 Q2 2015 Q2 2016 Q2 2017 Q2 2018

Q2 GAAP and Non-GAAP Financial Highlights

NIS mm

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

28

GAAP Adjusted Non-GAAP Q2 2018 Q2 2017 % Chg. Q2 2018 Q2 2017 % Chg. Sales 1,348 1,288 4.8% 2,103 2,042 3.0% Gross Profit 542 491 10.4% 813 753 8.0% GP Margin 40.2% 38.2% 38.7% 36.9% Operating Profit 190 146 30.5% 207 187 11.2% EBIT Margin 14.1% 11.3% 9.9% 9.1% Net Profit (to SH) 110 73 51.4% 112 97 14.0% NP Margin 8.1% 5.6% 5.3% 4.8% Operating Cash Flow 159 154 190 199 Capex (1) (49) (49) (76) (71) Net debt 1,933 1,818 2,143 2,138 Change in WC (CF) 61 53 7 34

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

Appendix

30

Appendix

YTD 2018

Additional information

31

YTD 2018 GAAP and Non-GAAP Financial Highlights

NIS mm

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

32

GAAP Adjusted Non-GAAP YTD 2018 YTD 2017 % Chg. YTD 2018 YTD 2017 % Chg. Sales 2,794 2,696 3.7% 4,270 4,125 3.5% Gross Profit 1,143 1,059 8.0% 1,646 1,533 7.4% GP Margin 40.9% 39.3% 38.5% 37.2% Operating Profit 439 347 26.5% 461 410 12.7% EBIT Margin 15.7% 12.9% 10.8% 9.9% Net Profit (to SH) 263 180 46.4% 258 213 21.0% NP Margin 9.4% 6.7% 6.0% 5.2% Operating Cash Flow 237 96 296 113 Capex (1) (95) (92) (146) (132) Net debt 1,933 1,818 2,143 2,138 Change in WC (CF) (45) (144) (150) (244)

3,769 3,813 4,125 4,270 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 YTD15 YTD16 YTD17 YTD18

Strong Sales Momentum Continues

YTD 2018 Consolidated Sales NIS mm; Non-GAAP

33

Negative translation differences = NIS -104

• Organic growth excluding FX : +7.1%

4,270 1,964 1,644 377 285

100% 46% 39% 9% 7%

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

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Overall Group Strauss Coffee Strauss Israel Dips & Spreads Water Other

YTD 2018 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

'18/'17 Growth '18/'17 Organic growth

• excl. FX

34

3.5% 1.1% 5.7% 11.8% 9.2%

• 100.0%

7.1% 6.4% 5.7% 15.7% 9.1% 0.0%

4,125 4,270 281 (32) (104)

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

YTD 2018 Sales Bridge

35

+7.1% organic growth (1)

NIS mm; Non-GAAP; YTD 2016 to YTD 2018

(1) Excluding FX Primarily negative BRL translation (NIS - 102mm)

4,125 4,302.0 4,270 118 89 51 23 (104) (32)

Group sales, First Half 2017 Coffee Strauss Israel International Dips & Spreads Strauss Water Effect of Translation Differences * M&A Group sales, First Half 2018

YTD 2018 Sales Bridge

36

NIS mm; Non-GAAP; YTD 2016 to YTD 2018

Higher volumes in most geographies High growth in Israel

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

Primarily negative BRL translation (NIS -102mm) Higher volumes due to innovation Max Brenner disposal, Growth in Sabra and Obela

1,418 1,459 1,533 1,646 37.6% 38.3% 37.2% 38.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

• 200

400 600 800 1,000 1,200 1,400 1,600 1,800 YTD15 YTD16 YTD17 YTD18

37

YTD 2018 Consolidated Gross Profit and Gross Margins

NIS mm; Non-GAAP

• excl. FX:

+9.3%

Negative translation differences NIS -27

YTD 2018 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

YTD 2017 GP & GM

38

D = 113mm D = 21mm D = 77mm D = 15mm

NIS 1533 NIS 620 NIS 627 NIS 286 37.2% 32.3% 39.8% 45.6% 1,646 641 704 301 38.5% 39.0% 36.0% 45.4%

• 30

170 370 570 770 970 1,170 1,370 1,570 1,770

Overall Group Strauss Israel Strauss Coffee Dips & Spreads + Other

309 396 410 461 8.2% 10.4% 9.9% 10.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

• 50

100 150 200 250 300 350 400 450 500 YTD15 YTD16 YTD17 YTD18

39

YTD 2018 Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

• YTD 2018 / YTD 2017: +12.7%
• excluding FX : +15.1%

YTD 2018 EBIT Bridge

40

Total EBIT up 12.7% EBIT exc. FX up 15.1%

NIS mm; Non-GAAP; YTD 2017 to YTD 2018 410 461 60 (9)

Operating Profit, H1 2017 EBIT growth excluding FX effect of Translation Differences Operating Profit, H1 2018

425 508 521 575 11.3% 13.3% 12.6% 13.5% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 100 200 300 400 500 600 700 YTD15 YTD16 YTD17 YTD18

41

YTD 2018 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

461 178 226 29 27 1 10.8% 10.9% 11.5% 7.9% 9.4%

• 50

100 150 200 250 300 350 400 450 500

Overall Group Strauss Isarel Strauss Coffee Dips & Spreads Water Other

YTD 2018 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

YTD 2017 EBIT & EBIT %

42

D = 51mm D = 7mm D = 34mm D = 6mm D = 9mm D = -5mm NIS 410 NIS 171 NIS 192 NIS 23 NIS 18 NIS 6 6.7% 6.9% 9.9% 9.9% 11.0% NA

YTD 2018 EBITDA and EBITDA Margins

NIS mm; Non-GAAP; % Margin

YTD 2017 EBITDA and EBITDA Margins

43

575 224 260 42 37

13.5% 13.7% 13.3% 11.3% 13.1%

100 200 300 400 500 600 700

Overall Group Strauss Israel Strauss Coffee D&S Water

D = 54mm D = 9mm D = 36mm D = 7mm D = 19mm

NIS 521 NIS 215 NIS 224 NIS 35 NIS 18 12.6% 11.5% 13.8% 11.1% 10.4%

133 185 213 258

3.5% 4.9% 5.2% 6.0%

• 1.0%

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

• 50

100 150 200 250 300 YTD15 YTD16 YTD17 YTD18

1.24 1.73 1.95 2.25

YTD 2018 Net Profit Up 21% (attributed to the Company’s shareholders), Net Margins and EPS

NIS mm; Non-GAAP

EPS

44

YTD 2018 Net Profit Bridge (attributed to the Company’s shareholders)

NIS mm; Non-GAAP; YTD 2017 to YTD 2018

45

213 258 51 35 15 (56)

Net Income H1 2017 EBIT Finance exp. Non controlling interest Taxes on income Net Income H2 2018

67 115 56 69 9.7% 15.9% 9.1% 10.1% 0.0% 5.0% 10.0% 15.0% 20.0%

• 20

40 60 80 100 120 140 YTD15 YTD16 YTD17 YTD18 694 724 613 679 550 600 650 700 750 YTD15 YTD16 YTD17 YTD18

Sabra YTD 2018 Snapshot

NIS mm; Non-GAAP; for 100% share

Sales EBIT and EBIT Margins

Organic

• excl. FX:

15.0% 46

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

367 450 569

26.5% 26.5% 30.0% YTD16 YTD17 YTD18

104 143 194

7.5% 8.4% 10.2%

YTD16 YTD17 YTD18

1,383 1,699 1,895

YTD16 YTD17 YTD18

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

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

47

Appendix

Strauss Group

48

49

Local Currencies vs. the NIS

Current exchange rate as of June 30th, 2018.

RSD PLN EUR GBP RON CNY CAD CHF AUD MXN UAH USD RUB BRL YTD'18/YTD'17 12.2% 8.7% 7.5% 5.1% 4.8% 3.7% 0.4%

• 1.1%
• 1.8%
• 2.1%
• 3.8%
• 3.9%
• 6.1%
• 10.6%

Q2'18/Q2'17 12.3% 6.9% 8.0% 6.0% 5.7% 7.0% 3.7%

• 0.4%

0.3%

• 4.7%

0.4%

• 0.5%
• 8.1%
• 11.1%
• 15.0%
• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0%

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

50

Local Currencies vs. the USD

Current exchange rate as of June 30th, 2018.

RSD PLN RON ILS UAH RUB BRL YTD'18/YTD'17 16.7% 13.2% 9.1% 4.1% 0.0%

• 2.2%
• 6.8%

Q2'18/Q2'17 12.9% 7.4% 6.2% 0.5% 0.8%

• 7.7%
• 10.6%
• 15.0%
• 10.0%
• 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

51

Strauss Israel Non-GAAP Financial Highlights Q2 2018 NIS mm

52

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 2018 YTD 2017 % Chg. Q2 2018 Q2 2017 % Chg. Revenue: H&W 1,068 1,002 6.5% 536 516 3.9% F&I 576 553 4.2% 242 221 9.6% Total Revenue 1,644 1,555 5.7% 778 737 5.6% Total Gross Profit 641 620 3.4% 300 287 4.8%

Gross Margins

39.0% 39.8% (0.8%) 38.6% 38.9% (0.3%)

EBIT: H&W 110 108 2.0% 56 55 1.9%

Margins

10.3% 10.7% (0.4%) 10.4% 10.6% (0.2%)

F&I 68 63 8.9% 13 11 28.6%

Margins

12.0% 11.4% 0.6% 5.8% 4.9% 0.9%

Total EBIT 178 171 4.5% 69 66 6.4%

Margins

10.9% 11.0% (0.1%) 8.9% 8.9% (0.0%)

EBITDA: H&W 137 135 2.0% 69 68 2.1%

Margins

12.9% 13.4% (0.6%) 13.0% 13.2% (0.2%)

F&I 87 80 8.7% 23 20 17.1%

Margins

15.1% 14.5% 0.6% 9.4% 8.8% 0.6%

Total EBITDA 224 215 4.5% 92 88 5.4%

Margins

13.7% 13.8% (0.1%) 11.8% 11.9% (0.0%)

1,431 1,488 1,555 1,644 1,300 1,350 1,400 1,450 1,500 1,550 1,600 1,650 1,700 YTD15 YTD16 YTD17 YTD18

YTD 2018 Strauss Israel Sales

NIS mm; Non-GAAP

53

678 712 737 778

• 100

200 300 400 500 600 700 800 900 Q2'15 Q2'16 Q2'17 Q2'18

Q2 Strauss Israel Sales

NIS mm; Non-GAAP

54

YTD 2018 Strauss Israel EBIT and EBIT Margins

NIS mm; Non-GAAP

55

136 161 171 178 9.5% 10.8% 11.0% 10.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

• 20

40 60 80 100 120 140 160 180 200 YTD15 YTD16 YTD17 YTD18

44 63 66 69 6.5% 8.8% 8.9% 8.9% 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 Q2'15 Q2'16 Q2'17 Q2'18

Q2 Strauss Israel EBIT and EBIT Margins

NIS mm; Non-GAAP

56

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 2.07 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 Q3

London Sugar Historical & Futures Prices 2014-2018 ($\T)

2015 Avg. 374 2014 Avg. 440 2018 Avg. 351 2016 Avg. 500

Futures

Sugar

Futures

2017 Avg. 433

Futures

London Cocoa Historical & Futures Prices 2014-2018 (GBP\T)

2015 Avg. 2,101 2014 Avg. 1,923 2018 Avg. 1,750 2016 Avg. 2,188

Cocoa

2017 Avg. 1,771

Futures

Appendix

Strauss Coffee

60

Strauss Coffee Non-GAAP Financial Highlights

Q2 2018 NIS mm

61

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 2018 YTD 2017 % Chg. Q2 2018 Q2 2017 % Chg. Revenue: Israel 375 361 3.7% 158 149 6.2% International 1,589 1,582 0.5% 820 833 (1.5%) Total Revenue 1,964 1,943 1.1% 978 982 (0.3%) Total Gross Profit 704 627 12.4% 352 318 10.9%

Gross Margins

35.9% 32.3% 3.6% 36.0% 32.4% 3.6%

EBIT: Israel 59 57 5.0% 18 17 9.8%

Margins

15.9% 15.7% 0.2% 11.6% 11.2% 0.4%

International 167 135 22.4% 89 84 5.1%

Margins

10.5% 8.6% 1.9% 10.9% 10.2% 0.7%

Total EBIT 226 192 17.3% 107 101 5.8%

Margins

11.5% 9.9% 1.6% 11.0% 10.4% 0.6%

EBITDA: Israel 66 63 5.8% 21 20 10.1%

Margins

17.7% 17.4% 0.3% 13.8% 13.3% 0.5%

International 194 161 20.3% 103 98 4.7%

Margins

12.2% 10.2% 2.0% 12.5% 11.8% 0.7%

Total EBITDA 260 224 16.2% 124 118 5.6%

Margins

13.3% 11.5% 1.7% 12.7% 12.0% 0.7%

Strauss Coffee Non-GAAP Sales by Geography

YTD 2018 & Q2 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.

62

Strauss Coffee Sales % Change % Change YTD 2018 YTD 2017 NIS Local Currency Q2 2018 Q2 2017 NIS Local Currency Israel 375 361 3.7% 3.7% 158 149 6.2% 6.2% International: Três Corações Joint Venture (Brazil) 973 974 (0.1%) 11.5% 501 524 (4.3%) 7.4% CIS 286 297 (3.4%) 2.4% 153 149 3.0% 9.2% Poland 156 144 8.8% 0.0% 72 70 2.4% (3.8%) Romania 105 106 (1.3%) (5.9%) 55 55 0.1% (5.2%) Serbia 69 61 13.3% 0.7% 39 35 11.9% (0.4%) Total International 1,589 1,582 0.5% 6.8% 820 833 (1.5%) 5.3% Total Coffee 1,964 1,943 1.1% 6.2% 978 982 (0.4%) 5.5%

1,681 1,657 1,943 1,964

• 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 YTD15 YTD16 YTD17 YTD18

YTD 2018 Strauss Coffee Sales

NIS mm; Non-GAAP

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

• Excl. FX

+6.2%

63

835 877 982 978

• 200

400 600 800 1,000 1,200 Q2'15 Q2'16 Q2'17 Q2'18

Q2 2018 Strauss Coffee Sales

NIS mm; Non-GAAP

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

• Excl. FX+5.5%

64

136 163 192 226 8.1% 9.9% 9.9% 11.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

• 50

100 150 200 250 YTD15 YTD16 YTD17 YTD18

YTD 2018 Strauss Coffee EBIT and EBIT Margins

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

65

NIS mm; Non-GAAP

50 83 102 107 5.9% 9.6% 10.4% 11.0% 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 Q2'15 Q2'16 Q2'17 Q2'18

Q2 Strauss Coffee EBIT and EBIT Margins

NIS mm; Non-GAAP

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

66

Robusta Historical & Futures Prices 2014-2018 ($\T)

2015 Avg. 1,715 2014 Avg. 2,003 2018 Avg. 1,757 2016 Avg. 1,742

Futures

Robusta

2017 Avg. 2,038

Futures

Arabica Historical & Futures Prices 2014-2018 (Cent\Lb)

2015 Avg. 134 2014 Avg. 178 2018 Avg. 120 2016 Avg. 136

Arabica

2017 Avg. 133

Futures

NY Arabica and Brazil Arabica

Indexed since 9.11.2012

Source : Bloomberg

69

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

Appendix

Sabra & Obela

70

Strauss D&S Non-GAAP Financial Highlights

Q2 2018 NIS mm; 50% share

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

71

Dips & Spreads (Non GAAP) YTD 2018 YTD 2017 % Chg. Q2 2018 Q2 2017 % Chg. Revenue: Sabra (50%) 339 307 10.7% 178 163 9.7% Obela (50%) 39 31 22.6% 19 15 21.1% Total Revenue 377 338 11.8% 197 178 10.7% EBIT: Sabra (50%) 34 28 22.4% 20 9 117.5%

Margins

10.1% 9.1% 1.0% 11.2% 5.6% 5.6%

Obela (50%) (5) (5)

NM

(2) (3)

NM

Margins

NM NM NM NM NM NM

Total EBIT 29 23 31.3% 18 6 187.4%

Margins

7.9% 6.7% 1.2% 9.3% 3.6% 5.7%

EBITDA: Total EBITDA 42 35 21.1% 24 12 95.5%

Margins

11.3% 10.4% 0.9% 12.6% 7.1% 5.5%

Humera Sesame Prices 2014-2018 (USD/Metric Ton)

72

2018 Avg. 1,459 2015 Avg. 1,324 2016 Avg. 1,108 2014 Avg. 2,121

2017 Avg. 1,193

Appendix

Strauss Water

73

240 238 261 285 210 220 230 240 250 260 270 280 290 YTD15 YTD16 YTD17 YTD18

YTD 2018 Strauss Water Non-GAAP Sales

Non-GAAP; NIS mm

74

120 124 135 150

• 20

40 60 80 100 120 140 160 Q2'15 Q2'16 Q2'17 Q2'18

Q2 2018 Strauss Water Non-GAAP Sales

Non-GAAP; NIS mm

75