Strauss Group April 2015 Disclaimer This presentation does not - - PowerPoint PPT Presentation

Strauss Group

April 2015

Disclaimer

This presentation does not constitute an offer for investment or an invitation to purchase or subscribe for any securities of Strauss Group Ltd. (the "Company"). In particular, this presentation does not constitute a "public offering". This presentation does not purport to be all-inclusive or to contain all information that may be relevant in making any decision concerning an investment in the securities of the Company. This presentation was prepared primarily as a summary for your convenience only and does not reflect all data on the Company and its activity, and it does not replace the need to review the Company's public reports. The information contained in this presentation is incomplete, and everything contained herein is subject to the contents of the Company’s relevant reports and should not be considered a representation or guarantee, including for the completeness or accuracy of the information contained herein. This presentation may include forward-looking information that is based on estimates and assumptions by Company management as at the date of its preparation, which, although the Company believes are reasonable, are by nature uncertain. The realization or non-realization of such forward-looking information is influenced, inter alia, by the risk factors that are typical of the Company's activity, and by developments in the economic environment and in external factors influencing the Company's activity, which cannot be assessed in advance and are beyond the Company's control. The Company disclaims any intention or obligation to update or revise any such forward-looking statements or estimates and makes no commitment to update this presentation.

2

GAAP to Non – GAAP Reconciliations

3

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP adjusted 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: Três Corações (a 50%/50% JV with a local group named São Miguel Holding e Investimentos S.A. 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), PepsiCo Strauss Fresh Dips & Spreads International (a 50%/50% JV with PepsiCo outside the U.S. and Canada) and Haier Strauss Water (a 50%/50% JV with Haier in China). In addition, non-GAAP adjusted 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. The Company's management believes that these measures provide investors with transparency by helping illustrate the underlying financial and business trends relating to the Company's results of operations and financial condition and comparability between current and prior periods. Management uses the measures to establish and monitor budgets and

• perational goals and to evaluate the performance of the Company. Please see the "GAAP to Non-GAAP Adjusted

Reconciliation" tables in the Company's MD&A report for a full reconciliation of the Company's GAAP to non-GAAP adjusted results.

01

Strauss Group at a Glance

02

Strauss Israel

03

Strauss Coffee

04

Sabra

4

01

Strauss Group at a Glance

02

Strauss Israel

03

Strauss Coffee

04

Sabra

5

We are a branded, multi-category and innovative food & beverage group

6

Strauss Group Financial Snapshot

Non-GAAP; NIS mm

2014 Sales: NIS 8,140mm (USD 2,278mm (1))

5 Year Sales CAGR: 5.0% 5 Year Constant Currency Organic Sales CAGR: 6.2% 2014 Gross Margins: 38.3% 2014 EBIT and EBIT Margins: NIS 746mm; 9.2% Margin Excluding Greenfield Operations(2): 10.1% Margin 2014 Net Profit and Net Margins: NIS 371mm, 4.6% Net debt / 2014 EBITDA: 1.8x ; Net Debt: NIS 1,688mm

Note: 5 Year CAGRs based on 2009-2014. (1) Conversion from NIS to USD based on USD 1 = NIS 3.57 (2014 avg.) (2) Excludes Other (Strauss Water, Max Brenner and HQ) and Obela.

7

2014 EBITDA and EBITDA Margins: NIS 964mm; 11.8% Margin

3,825 1,402 974 793 548 282 205 111 47% 17% 12% 10% 7%

3% 3%

1%

Coffee Dairy Dips & Spreads and Fresh Vegies Confectionary & pastry Water Other Health and Wellness Salty Snacks Max Brenner

2014 Sales by Category

NIS mm; Non GAAP; % sales contribution

16.4% 1.7% 2.7% NM 2.0%

5 Year CAGRs

3.5% 8.4% 0.5%

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

8

4,128 1,781 727 722 635 147 51% 22% 9% 9% 8%

2%

0% 10% 20% 30% 40% 50% 60%

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Israel Brazil North America C.E.E. CIS ROW

2014 Sales by Geography

NIS mm; Non GAAP; % sales contribution

Note: figures for Israel include Strauss 50% share in the salty snacks business; figures for Brazil reflect Strauss 50% share in 3C (our JV with Sao Miguel Group in Brazil); figures for North America and ROW include Strauss 50% share in Sabra and Obela and Strauss Water China.

4.2% 9.4% 22.2% (-7.6%) 3.2% NM 5 Year CAGRs

9

We strive to be #1

• r a strong #2

everywhere we play

10

We are a Partner to Some of the World's Leading Consumer-Facing Brands

11

8,143 8,140 190 89 61 18 (28) (333)

2013 Sales Coffee Excluding Green Coffee Dips & Spreads Other Green Coffee Strauss Israel FX effect* 2014 Sales

Sales Bridge

12

NIS mm; Non GAAP; FY 2013 to FY 2014

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

5.6% 15.0% 10.1% 8.1% (0.9%)

RUB/NIS & UHA/NIS: NIS 156mm BRL/NIS: NIS 154mm

Growth of Israeli F&B Market and Strauss Sales in Israel

StoreNext and Strauss Public Filings

13

3.5% 3.2%

• 1.6%
• 3.3%
• 0.4%
• 4.0%
• 3.0%
• 2.0%
• 1.0%

0.0% 1.0% 2.0% 3.0% 4.0%

2012 2013 2014 2014 Strauss Sales - StoreNext 2014 Strauss Actual Sales in Israel

769 746 18 14 (55)

2013 EBIT Dips & Spreads Other Strauss Israel Strauss Coffee 2014 EBIT

EBIT Bridge

14

NIS mm; Non GAAP; FY 2013 to FY 2014

International Coffee: -68mm Israel: +13mm

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

CIS: USD-RUB Exchange Rate

15

329 (23) 51 16 (2) 371

280 290 300 310 320 330 340 350 360 370 380 2013 Net Profit Negative EBIT growth Decrease in financing expenses, net Decrease in taxes Increase in Minority Interest 2014 Net Profit

Net Profit Bridge

16

NIS mm; Non GAAP; FY 2013 to FY 2014

2014 EPS: 3.47 2013 EPS: 3.09

4.6% 4.0%

• Strengthening of the USD vs. all hedged

currencies (primarily the RUB and the NIS).

• CPI increase of 1.9% 2013 vs. 0.1% in 2014

in addition to decrease in the balance of CPI loans in 2014. Lower effective tax rate (26.2% in 2014 vs. 29.8% in 2013) due to profit mix for tax purposes and tax income from deferred taxes recognized for the first time in some of the Group’s subsidiaries.

Strauss Israel; 2.5%; 13.2%; 391 Strauss Coffee; 7.4%; 10.9%; 417 Sabra; 26.8%; 16.1%; 104

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

This Presentation will Focus on Three Main Businesses:

Strauss Israel, Strauss Coffee and Sabra

2014 EBITDA Margin 5 Year Local Currency Sales CAGR

17

(5Y LC Sales CAGR; 2014 EBITDA %; 2014 EBITDA (NIS mm))

01

Strauss Group at a Glance

02

Strauss Israel

03

Strauss Coffee

04

Sabra

18

2014 Sales: NIS 2,972mm (USD 832mm (1)) 5 Year Sales CAGR: 2.5% 2014 Gross Margins: 40.2% 2014 EBITDA and EBITDA Margins: NIS 391mm; 13.2% Margin

Strauss Israel Financial Snapshot

Non-GAAP; NIS mm

19

Note: 5 Year CAGRs based on 2009-2014 (1) Conversion from NIS to USD based on USD 1 = NIS 3.57 (2014 avg.)

In Israel, Strauss is an iconic company and the second largest F&B company with an overall 11.6% value market share

20

Source: StrorNext for 2014.

Strauss Market Share and Market Position in Israel

Selected Categories, value market share for 2014

69.0% 63.4% 60.5% 44.6% 40.1% 35.2% 33.9% 31.0% Dairy Desserts Milk Drinks Chocolate Tablets Yogurt Sweet Snacks Salty Snacks Chilled Salads Chewing Gum

#1 #1 #1 #1 #1 #2 #2 #2

Market Size (NIS mm) 524mm 381mm 1,024mm Source: StoreNext for 2014. (1) Including functional drinks. (2) Including children's chocolate.

(1)

220mm 514mm

(2)

425mm 948mm 738mm

~70% of Strauss products in Israel hold the #1 market position

21

2,840 2,901 3,000 2,972

• 500

1,000 1,500 2,000 2,500 3,000 3,500 2011 2012 2013 2014

FY Strauss Israel Sales

(NIS mm; Non GAAP)

22

Exceptionally strong H2’13 in both F&I and H&W

Fun & Indulgence and Health & Wellness H2 Sales (NIS mm; Non GAAP)

470 468 488 474

350 370 390 410 430 450 470 490 510

H2'11 H2'12 H2'13 H2'14 959 978 1,029 995

650 700 750 800 850 900 950 1,000 1,050

H2'11 H2'12 H2'13 H2'14 F&I Sales H&W Sales

23

302 297 315 315 10.6% 10.2% 10.5% 10.6% 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 2011 2012 2013 2014

FY Strauss Israel EBIT and EBIT Margins

(NIS mm; Non GAAP)

0.0%

24

Target Milk Price (NIS per Liter)

Price excluding Strauss transportation costs

25

Source: Israeli Dairy Board (Production and Marketing) website.

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

Milk Price

25

London Cocoa (GBP per Ton)

Source: FactSet

1,962 (GBP\T) (April 14, 2015)

2014 average: GBP 1,923 2013 average: GBP 1,576 2012 average: GBP 1,542

26

01

Strauss Group at a Glance

02

Strauss Israel

03

Strauss Coffee

04

Sabra

27

Strauss Coffee is an international branded beverage company focused

• n the fast-growing,

$85 billion

coffee market

28

Confidential

2014 Sales: NIS 3,825mm (USD 1,071mm (1)) 5 Year Sales CAGR: 2.7% 5 Year Constant Currency Sales CAGR: 7.4% (Organic excl. FX: 6.7%) 2014 Gross Margins: 34.0% EBITDA and EBITDA Margins: NIS 417mm; 10.9% Margin

Strauss Coffee Financial Snapshot

(Non-GAAP; NIS mm)

29

Note: 5 Year CAGRs based on 2009-2014 (1) Conversion from NIS to USD based on USD 1 = NIS 3.57 (2014 avg.)

Confidential

Strauss Coffee Has Leading Market Positions in Some of the Fastest Growing, Largest Coffee Markets

Market Position and 2014 Net Sales Contribution to Strauss Coffee, by Country

46% 18% 17% 8% 6% 5%

. Notes: Market share data represents total volume market share, 2014. Brazil reflects 3C market share (3C is a 50/50 joint venture between Strauss Coffee and São Miguel Group). Russia sales contribution Includes Ukraine.

30

Confidential

Why We Like The Coffee Market

$85 Billion Market Fast Growing

(‘09-’14 CAGR: 8.3%)

Fragmented Market Brazil, Emerging Asia and Single Serve Drive Market Growth Resilient

31

3,926 4,206 3,944 3,825

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 YTD'11 YTD'12 YTD'13 YTD'14

FY Strauss Coffee Sales

(NIS mm; Non GAAP)

32

• Growth excluding FX:

5.7%

• Growth excluding

green coffee export and FX 5.6%

Strauss Coffee Non-GAAP figures represent 50% share in Três Corações Joint Venture (3C) – Brazil .

260 312 403 348 6.6% 7.4% 10.2% 9.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

• 50

100 150 200 250 300 350 400 450 YTD'11 YTD'12 YTD'13 YTD'14

FY Strauss Coffee EBIT and EBIT Margins

(NIS mm; Non GAAP)

33

Strauss Coffee Non-GAAP figures represent 50% share in Três Corações Joint Venture (3C) – Brazil .

London Robusta ($/Ton)

34

$1,779/Ton (April 14, 2015)

2014 average: $2,003 2013 average: $1,848 2012 average: $2,024

35

NY Arabica (ct./lbs.)

135.8 ct./Lbs (April 14, 2015)

2014 average: $1.78 2013 average: $1.26 2012 average: $1.75

Confidential

TRÊS CORAÇÕES (3C)

50/50 JOINT VENTURE BETWEEN STRAUSS COFFEE AND SAO MIGUEL GROUP

36

Confidential

84 53 80 107 165 605 946 1,025 1,137 1,388 1,708 1,778 1,697 1,781 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Corporate Rebranding Penetration

• f Sao Paulo

50/50 partnership with Santa Clara Brazil entry

Source: Company’s public filings. Starting in 2006 and thereafter, figures represent SCBV 50% share in 3C JV.

Três Corações Sales

(50% as consolidated by Strauss, NIS mm)

BRL devaluation

• vs. ILS partially
• ffset strong

growth ; 3C growth in local currency +15.4% in 2014 37

Confidential

Três Corações JV is #1 Coffee Player in Brazil

R&G Volume Market Share

15% 16% 19% 20% 20% 21% 22% 2008 2009 2010 2011 2012 2013 2014

Três Corações

Três Corações

Source: Nielsen. Note: Três Corações (3C) is a 50/50 joint venture between Strauss Coffee and São Miguel.

38

Confidential

Growth Drivers: Significant Consolidation Potential

Brazilian Footprint R&G Volume Market Share by Region

30%–45% MS 7%–16% MS

>50% of The Market is Held by Small Players

43.4% 28.1% 7.4% 9.0% 16.8% 8.9% 26.1% 21.6% 7.7% 10.5% 16.0% 23.7% 37.9% 3.6% 39.5% 16.8% 2.0% 8.0% 33.9% 13.3% 1.8% 13.2% 9.5% 47.1% 59.4% 68.6% 33.4% 32.0% 85.7% 21.2% 52.1% Nordeste MG, ES, RJ Interior SP Interior Sul SP Capital Centro-Oeste RJ Total 3C DEMB Melitta Others 20% 18% 15% 10% 10% 6% 20% % of Total Market

Source: Nielsen. Note: Três Corações (3C) is a 50/50 joint venture between Strauss Coffee and São Miguel.

39

Confidential

: A Significant Opportunity

40

Confidential

: Commercial

41

Confidential

Três Corações Alimentos S.A - Snapshot BRL mm for 100% ownership and including inter-company sales

386 609 714

21.3% 29.8% 30.4% 2012 2013 2014

89 205 216

4.9% 10.1% 9.2% 2012 2013 2014

Includes an overall EBIT impact of the launch of TRES single portion multi beverage system of ~BRL 66mm (2.8% of sales) in 2014; compared to minor impact in 2013.

Sales GP and GM EBIT and EBIT Margins

(1)

1,814 2,039 2,352

2012 2013 2014

Note: Três Corações Joint Venture: 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 December 31th, 2014. (1) EBIT before Other Expenses/ Income.

42

01

Strauss Group at a Glance

02

Strauss Israel

03

Strauss Coffee

04

Sabra

43

Sabra, our 50/50 JV with PepsiCo, is a clear market leader in the U.S. in hummus

(~63% value market share) and in refrigerated dips and spreads (#1; ~28% value market share)

44

We are

to benefit from the protein-rich, fresh,

better for you

food trend in the U.S.

uniquely positioned

45

Sabra Financial Snapshot

(Based on Non-GAAP adjusted figures for 50% share)

46

Note: 5 Year CAGRs based on 2009-2014 (1) Conversion from NIS to USD based on USD 1 = NIS 3.57 (2014 avg.)

2014 Sales: NIS 644mm (USD 180mm (1)) 5 Year Sales CAGR: 24.5% 5 Year Constant Currency Sales CAGR: 26.8% 2014 EBITDA and EBITDA Margins: NIS 104mm; 16.1% Margin

$9 $12 $18 $22 $34 $55 $76 $108 $159 $217 $261 $314 $360

Acquire of 50% of Sabra for $8.8mm PepsiCo acquires 50% of Sabra for $45mm Expanding into Canada New plant in VA; Sabra acquires Salsa company for $33mm

Sabra’s Sales

(USD mm for 100% Ownership)

47

Completion

• f VA plant

expansion

Sabra 63% Tribe (Nestle) 7% Athenos (Kraft) 4% PL 10% Cedars 4% Other 12% Sabra 10% Athenos (Kraft) 31% Tribe (Nestle) 22% Cedars 14% PL 3% Other 20%

Source: IRI Reviews. (1) IRI ILD Total US (Incl Club ex Costco); December 14’ figures

2014 (1)

Sabra’s Evolution of Hummus Value Market Share

48

Further Growth Engines

Sabra Hummus HHP

49

2.2% 3.9% 6.6% 11.5% 13.3% 14.9% 18.1% 21.0%

2007 2008 2009 2010 2011 2012 2013 2014

Source: IRI Reviews; December 14’ figures

Strauss D&S Non-GAAP Adjusted Financial Highlights

Q4 and YTD (NIS mm); 50% share

50

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

Dips & Spreads (Non GAAP) 2014 2013 % Chg. Q4'14 Q4'13 % Chg. Revenue: Sabra (50%) 644 565 13.9% 178 137 30.1% Obela (50%) 39 34 14.2% 14 11 29.5% Total Revenue 683 600 13.9% 192 148 30.1% EBIT: Sabra (50%) 90 74 22.6% 18 14 25.9%

Margins

14.0% 13.0% 1.0% 10.1% 10.4% (0.3%)

Obela (50%) (15) (17) (6.8%) (1) (3) (82.3%)

Margins

NM NM NM NM NM NM

Total EBIT 75 57 31.2% 18 11 59.2%

Margins

11.0% 9.5% 1.5% 9.0% 7.4% 1.6%

EBITDA: Sabra (50%) 104 92 14.1% 21 18 18.1%

Margins

16.2% 16.2% 0.0% 11.9% 13.1% (1.2%)

Obela (50%) (14) (16) 11.6% (0) (3) 92.4%

Margins

NM NM NM NM NM NM

Total EBITDA 91 77 18.5% 22 16 37.6%

Margins

13.3% 12.7% 0.5% 10.9% 10.3% 0.6%

776 1,007 1,131 1,288

• 200

400 600 800 1,000 1,200 1,400 YTD'11 YTD'12 YTD'13 YTD'14

FY Sabra Sales

(Non-GAAP; for 100%; NIS mm)

51

• Organic

growth excluding FX: 14.6%

72 129 147 181 9.3% 12.8% 13.0% 14.0% 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 80 100 120 140 160 180 200 YTD'11 YTD'12 YTD'13 YTD'14

FY Sabra EBIT and EBIT Margins

(Non-GAAP; for 100%; NIS mm)

52

“Hummus Is Conquering America”

Mass Media Coverage Spreads the Word, Raises Awareness and Establishes Hummus as America’s Next Top Food Trend

53

“Coca-Cola Has No Sabra Hummus, and That Is Really Unfortunate”

• The Street, April 2014, by Brian

Sozzi, CEO of Belus Capital Advisors

דבלב הרבס וגול

54

Lady Gaga: Natalie Portman: Katy Perry:

America's pop culture icons are also totally obsessed with hummus…

“I can't get enough

• f hummus.”

“I consume my own weight in hummus every day.” “I always must have fruit, granola and hummus backstage.”

55

Steve Colbert gives hummus a place in pop culture

56

Further Growth Engines (cont’d)

Expand to New Occasions via portability

57

Further Growth Engines (cont’d)

New Segments

58

Further Growth Engines (cont’d)

New Segments

59

Further Growth Engines (cont’d)

New Segments

60

Sabra Hummus New Plant Expansion

Doubling production capacity while further enhancing production capabilities

61

62

Q&A

63

THANK YOU

64

Appendices

65

Appendix I: STRAUSS GROUP

66

Strauss Group

Public ~35%

(31.12.14)

Strauss Israel Strauss Coffee Max Brenner PepsiCo-Strauss Dips & Spreads Strauss Water

25.1%

Mexico Australia

50%

Israel

50% 28%

Israel Australia Philippines Singapore Israel

Yotvata 50%

Obela

USA Canada

Sabra USA UK China

50%

Poland

Brazil

Dairy

50%

Confectionery Salty Snacks Salads Yad Mordechai

20% 49%

Business Partners Network Romania Serbia Russia Ukraine

12%

Japan

2014 Strauss Group Business Structure

Russia

67

Strauss Group is a Partner to Some of the World's Leading Consumer-Facing Brands

Minority Ownership Jointly Controlled Partnerships (50%/50%)

Dairy

Salty Snacks

Coffee (SCBV) 3C (Coffee Brazil) Water Sabra; Obela

• Since 1969
• 20% stake in Strauss Dairy business
• Additional licensing agreement for the use of Danone’s

know-how and trademarks primarily in Israel

Accounted for as Minority Interest

• Since 2007 (Sabra) and 2012 (Obela)
• Since 1990
• Additional licensing agreement for the use of PepsiCo’s

know-how and trademarks primarily in Israel

Accounted for under the Equity Method; Proportionately Consolidated under the Group’s Non- GAAP adjusted figures Salty Snacks

• Since 2008
• 25% stake in SCBV bought at a post money equity

valuation of about USD 1.2Bn (100%)

• July 2013: announced that TPG and Strauss are reviewing

possible TPG exit alternatives from SCBV

• Since 2005
• Since 2011 (Haier)
• Haier: 50%/50%

Water

• Since 2012 , 2012-2014 72% (STRS) 28% Virgin; Starting

January 1st 2014 Strauss Water achieved control in VSW

68

Net Debt and Net Debt /EBITDA (2014)

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

1,476 1,422 1,475 1,688 1.9x 1.7x 1.5x 1.8x

• 0.5x

1.0x 1.5x 2.0x 2.5x 3.0x 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Q4.2011 Q4.2012 Q4.2013 Q4.2014

69

7,699 8,182 8,143 8,140 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2011 2012 2013 2014

FY Consolidated Sales

(NIS mm; Non GAAP)

70

2,705 2,871 3,114 3,119 35.1% 35.1% 38.2% 38.3% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2011 2012 2013 2014

FY Consolidated Gross Profit and Gross Margins

(NIS mm; Non GAAP)

71

572 625 769 746 7.4% 7.6% 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 2011 2012 2013 2014

FY Consolidated EBIT and EBIT Margins

(NIS mm; Non GAAP)

72

791 853 993 964 10.3% 10.4% 12.2% 11.8% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

• 200

400 600 800 1,000 1,200 2011 2012 2013 2014

FY Consolidated EBITDA and EBITDA Margins

(NIS mm; Non GAAP)

73

Appendix I: STRAUSS ISRAEL

74

Strauss Israel Non-GAAP Adjusted Financial Highlights

Q4 and YTD (NIS mm)

75 Strauss Israel (Non GAAP) YTD'14 YTD'13 % Chg. Q4'14 Q4'13 % Chg. Revenue: H&W 1,974 1,987 (0.7%) 465 499 (6.8%) F&I 998 1,013 (1.5%) 218 247 (11.7%) Total Revenue 2,972 3,000 (0.8%) 683 746 (8.4%) Total Gross Profit 1,196 1,211 (1.3%) 274 307 (10.8%)

Gross Margins

40.2% 40.4% (0.1%) 40.1% 41.2% (1.1%)

EBIT: H&W 203 200 1.6% 44 51 (13.1%)

Margins

10.3% 10.1% 0.2% 9.5% 10.2% (0.7%)

F&I 112 115 (2.8%) 20 16 23.9%

Margins

11.2% 11.4% (0.1%) 9.2% 6.6% 2.7%

Total EBIT 315 315 0.0% 64 67 (4.1%)

Margins

10.6% 10.5% 0.1% 9.4% 9.0% 0.4%

EBITDA: H&W 252 250 0.8% 56 64 (11.4%)

Margins

12.8% 12.6% 0.2% 12.2% 12.8% (0.6%)

F&I 139 143 (2.9%) 27 24 14.6%

Margins

13.9% 14.1% (0.2%) 12.4% 9.6% 2.8%

Total EBITDA 391 393 (0.5%) 83 88 (4.3%)

Margins

13.2% 13.1% 0.1% 12.3% 11.7% 0.5%

Appendix II: STRAUSS COFFEE

Russia Serbia Russia Israel Romania Poland Três Corações Joint Venture (Brazil)

76

Três Corações Joint Venture (Brazil)

Note: Três Corações Joint Venture: a company jointly held by the Group (50%, and by the São Miguel Group 50%) (3C).

Strauss Coffee Non-GAAP Adjusted Financial Highlights

FY and Q4 (NIS mm)

77

Strauss Coffee Non-GAAP figures represent 50% share in Três Corações Joint Venture (3C) – Brazil

Strauss Coffee (Non GAAP) 2014 2013 % Chg. Q4'14 Q4'13 % Chg. Revenue: Israel 689 715 (3.6%) 168 185 (8.7%) International 3,136 3,229 (2.9%) 864 824 4.8% Total Revenue 3,825 3,944 (3.0%) 1,032 1,009 2.4% Total Gross Profit 1,302 1,341 (2.9%) 308 345 (10.6%)

Gross Margins

34.0% 34.0% 0.0% 29.9% 34.2% (4.3%)

EBIT: Israel 101 88 14.8% 20 12 65.1%

Margins

14.7% 12.3% 2.4% 11.9% 6.6% 5.3%

International 247 315 (21.8%) 36 73 (51.3%)

Margins

7.9% 9.8% (1.9%) 4.2% 8.9% (4.8%)

Total EBIT 348 403 (13.8%) 56 85 (34.9%)

Margins

9.1% 10.2% (1.1%) 5.4% 8.5% (3.1%)

EBITDA: Israel 112 99 12.7% 24 14 63.0%

Margins

16.3% 13.9% 2.3% 14.5% 8.1% 6.4%

International 305 377 (19.1%) 50 89 (44.2%)

Margins

9.7% 11.7% (1.9%) 5.7% 10.7% (5.0%)

Total EBITDA 417 476 (12.5%) 74 103 (28.7%)

Margins

10.9% 12.1% (1.2%) 7.2% 10.3% (3.1%)

Note: Três Corações Joint Venture: a company jointly held by the Group (50%, and by the São Miguel Group 50%) (3C).

Strauss Coffee Non-GAAP Sales by Geography

FY and Q4 (NIS mm)

78

Strauss Coffee Non-GAAP figures represent 50% share in Três Corações Joint Venture (3C) – Brazil . Note: Figures were rounded off to NIS millions. Totals were calculated on the basis of the exact figures in NIS thousands.

Strauss Coffee Sales % Change % Change 2014 2013 NIS Local Currency Q4'14 Q4'13 NIS Local Currency Israel 689 715 (3.6%) (3.6%) 168 185 (8.7%) (8.7%) International: Três Corações Joint Venture (Brazil) 1,781 1,697 4.9% 15.4% 464 407 14.0% 17.4% CIS 635 733 (12.8%) 11.0% 188 221 (14.0%) 19.1% Poland 297 368 (19.3%) (18.7%) 84 88 (4.5%) (3.5%) Serbia 179 205 (12.5%) (8.0%) 52 52 (0.6%) 4.9% Romania 244 226 8.1% 9.8% 76 56 35.9% 36.0% Total International 3,136 3,229 (2.9%) 8.1% 864 824 4.8% 15.5% Total Coffee 3,825 3,944 (3.0%) 5.7% 1,032 1,009 2.4% 10.7%

Includes an overall EBIT impact of the launch of TRES single portion multi beverage system of ~BRL 66mm (2.8% of sales) and ~BRL 22mm (3.5% of sales) in 2014 and Q4’14, respectively; compared to minor impact in the equivalent periods in 2013; (for 100%

• wnership).

51 44 9.7% 7.0%

Q4'13 Q4'14

205 216 10.1% 9.2%

2013 2014

171 180 32.3% 28.9%

Q4'13 Q4'14

609 714 29.8% 30.4%

2013 2014

2,039 2,352

2013 2014

529 621

Q4'13 Q4'14

79 Sales GP and GM EBIT and EBIT Margins (1)

Três Corações Joint Venture Três Corações Alimentos S.A - Snapshot

(BRL mm for 100% ownership and including inter-company sales )

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 December 31th, 2014. (1) EBIT before Other Expenses/ Income.

Appendix III: SABRA & OBELA

80

2014 Avg. 2,121 2013 Avg. 2,074 2012 Avg. 1,461

Humera Sesame Prices 2012-2015

81

Appendix IV: STRAUSS WATER

82

405 418 483 548 100 200 300 400 500 600 YTD'11 YTD'12 YTD'13 YTD'14

FY Strauss Water Non-GAAP Sales

(Non GAAP; NIS mm)

83

Appendix V: MAX BRENNER

84

140 135 116 111 20 40 60 80 100 120 140 160 YTD'11 YTD'12 YTD'13 YTD'14

FY Max Brenner Sales

(Non GAAP; NIS mm)

Organic growth (excluding Las Vegas branch) and excluding FX: +7.6% 85