STRAUSS GROUP November 16 th , 2017 Q3 2017 Earnings Presentation - - PowerPoint PPT Presentation

STRAUSS GROUP

November 16th, 2017

Q3 2017 Earnings Presentation

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

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

contained in the presentation and any other information provided during the presentation (the “Information”) does not constitute a basis for investment decisions and does not comprise a recommendation, an opinion or a substitute for the investor's sole discretion. The Information provided in the presentation concerning the analysis of the Company's activity is only an extract, and in order to receive a complete picture of the Company's activity and the risks it faces, one should review the Company's reports to the Israel Securities Authority and the Tel Aviv Stock Exchange. The Company is not liable, and will not be held liable, for any damage and/or loss that may be caused as a result of use of the Information. The presentation may contain forward-looking statements as defined in the Israeli Securities Law, 5728-1968. All forward-looking statements in this presentation are made based on the Company's current expectations, evaluations and forecasts, and actual results may differ materially from those anticipated, in whole or in part, as a result of different factors including, but not limited to, changes in market conditions and in the competitive and business environment, regulatory changes, currency fluctuations or the occurrence of one or more of the Company's risk factors. In addition, forward-looking forecasts and evaluations are based on information in the Company’s possession while preparing the

• presentation. The Company does not undertake any obligation to update forward-looking forecasts and evaluations

made herein to reflect events and/or circumstances that may occur after this presentation was prepared.

.

Disclaimer

2

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company provides non-GAAP operating results which include the results of jointly controlled entities as if they were proportionately consolidated. Strauss Group has a number of jointly controlled companies: the Três Corações joint venture (3C) - Brazil (a company jointly held by Strauss Group (50%) and by the São Miguel Group (50%) in Brazil), Sabra Dipping Company (a 50%/50% JV with PepsiCo in the U.S. and Canada), Strauss Frito-Lay Ltd. (a 50%/50% JV with PepsiCo Frito-Lay in Israel) and PepsiCo Strauss Fresh Dips & Spreads International (a 50%/50% JV with PepsiCo

• utside the U.S. and Canada)(1).

In addition, non-GAAP figures exclude any share-based payments, mark to market of commodity hedging transactions as at end-of-period, other expenses or income and taxes referring to these adjustments. Company Management believes that these measures provide investors with transparency by helping to illustrate the underlying financial and business trends relating to the Company's results of operations and financial position and comparability between current and prior periods. Management uses these measures to establish and monitor budgets and operational goals and to evaluate the performance of the Company. Please see the GAAP to non-GAAP reconciliation tables in the Company's MD&A Report for a full reconciliation of the Company's GAAP to non-GAAP results.

GAAP to Non-GAAP Reconciliations

3

(1) In Q3'16 the subsidiary Strauss Water signed a series of share exchange and transfer agreements with companies of the Haier Group, as well as a joint venture agreement, with the aim of restructuring the Haier Strauss Water joint venture in China. The change in respect of the above agreements was reflected in the non- GAAP reports commencing in the third quarter of 2015. For further information, see Note 12.6 to the Consolidated Financial Statements as at December 31, 2015.

Gadi Lesin

Strauss Group C.E.O.

4

Q3 2017 Financial Highlights

NIS mm; Non-GAAP

5

(1)

Q3'17 Sales: NIS 2210mm; growth: 5.5% Q3'17 Organic growth excluding FX: 8.3% Q3'17 gross margins: 36.6% (down -170 bps vs. Q3'16) EBIT and EBIT margins: NIS 221mm (up 3.4%); 10% (down -20 bps vs. Q3'16) Net income and net margins: NIS 125mm (up 34.9%); 5.6% (up 120 bps vs. Q3'16) EPS: 1.09 (up 26.4% VS. Q3'16)

Higher EBIT due to S. Coffee & S. Water strong growth partially offset by Sabra Higher sales due to Coffee (Brazil & Russia), S. Israel & S. Water; Negative FX effect of 34M’ ILS (Sabra & Brazil) Lower GP margin due to increased milk and sugar prices in Israel , higher material costs and overhead in Sabra & higher green coffee prices Net income is up 34.9% due to strong EBIT and lower minority following TPG share acquisition

Q3 Highlights - Higher sales in S. Coffee , S. Israel & S. Water partially offset by higher material costs in Sabra & S. Israel ; Net income is up 35%

212 227 192 213 221 10.4% 10.6% 9.7% 10.2% 10.0%

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

6.8%

• 15.4%

11.2% 3.4% 2,040 2,138 1,974 2,096 2,210

4.8%

• 7.6%

6.1% 5.5% Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

798 811 711 804 809

39.0% 37.9% 35.9% 38.3% 36.6% Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

81 119 86 92 125 58 75 68 69 94

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

YTD 2017 Financial Highlights

NIS mm; Non-GAAP

7

(1)

YTD 2017 Sales: NIS 6335mm; growth: 7.2% YTD 2017 Organic growth excluding FX: 7.3% YTD 2017 Gross margins: 37% (down -130 bps vs. YTD 2016) EBIT and EBIT margins: NIS 631mm (up 3.6%); 10% (down -30 bps vs. YTD 2016) Net income and net margins: NIS 338mm (up 21.8%); 5.3% (up 60 bps vs. YTD 2016) EPS: 3.04 (up 17.6% VS. YTD 2016)

Higher EBIT due to strong sales partially offset by higher operating expenses in S. Coffee, S. Israel & S. Water and by sabra lower marketing GP down 130 bps due to Sabra recall, Brazil green coffee prices and higher milk prices partially offset by S. Water improved productivity Higher volumes in S. Israel, S. Coffee , S. Water & Obela as well as S. Coffee higher prices partially offset by Sabra Higher net income +21.8% due to strong EBIT and lower minority following TPG share acquisition

YTD Highlights - Higher volumes partially offset by higher raw materials (except S. water) and higher operating expenses; Net income is up 22%

• 1.2%
• 17.0%

21.4% 3.6%

611 603 501 609 631 10.1% 10.0% 8.7% 10.3% 10.0%

YTD 2013 YTD 2014 YTD 2015 YTD 2016 YTD 2017

EBIT

6,069 6,060 5,743 5,909 6,335

• 0.1%
• 5.2%

2.9% 7.2% YTD 2013 YTD 2014 YTD 2015 YTD 2016 YTD 2017 2,316 2,369 2,129 2,263 2,342

38.2% 39.1% 37.1% 38.3% 37.0% YTD 2013 YTD 2014 YTD 2015 YTD 2016 YTD 2017 GP GP margin

259 287 219 277 338 209 215 192 242 274

Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017

5.0% 5.3% 4.9% 6.1% 6.7% 4.3% 4.7% 3.8% 4.7% 5.3%

Strauss Israel – 7th Consecutive Quarter of Growth beyond F&B market

• Top line growth of 2.8% during the quarter continues to surpass that of the
• verall Food & Beverage market which grew a mere 0.3% during the quarter (1)
• Market share remains solid at 11.7% with significant improvement in Achla
• Gross margins erode predominantly due to higher milk prices and to a lesser

extent due to higher sugar prices, although these were somewhat offset but lower other commodity prices, in particular Cocoa

• Fun & Indulgence sales slightly lower due to holiday season
• Innovation continues – new product launches include Danone Pro with

granola, Milky Shot and confectionary items among others

• We continue to focus on delivering healthier products with less sugar, salt and

fat contents

9

* Source: Storenext

Strauss Coffee – Outstanding Top Line Growth continues 12.2%

10

• Organic top line excluding FX is up an even more significant 14.8%
• Growth is attributed mainly to increased volumes in Brazil and Russia and higher

selling prices in most geographies

• Very strong performance in International Coffee sales; 18.9% top line growth in

local currency

• Brazil 3C(1) continues to lead growth with a 27.5% increase in local currency; EBIT

up an impressive 33.5%, despite continued economic and political unrest

• Currency trend turns again – quarter negatively impacted by NIS 21 million; mainly

by BRL depreciation of NIS 19 million

• 3C(1) market share in Brazil R&G is at 25.2% (2)
• Sales in CIS are up 9.9% for the quarter in terms of both value and volume despite

a continued competitive environment

(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

11

• Market conditions for Sabra remain challenging as sales decline 9.2% in Q3
• Impairment of the Salsa operations in the amount of NIS 38 million
• Humus market share levels are strong at 58.6% for the last 4 weeks ending

October 8th

• Obela operations in Australia continues to outperform and has started selling into

New Zealand

• In Q3 Obela started selling Humus products in Germany as its first phase in the

European penetration

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

North America

Strauss Water

12

• Yet another strong quarter for Strauss Water with continued improvements on all

fronts; Sales, EBIT and Cash Flows

• Sales in Strauss water (excluding HSW) are up 8.2% during the quarter, mainly

due to increased sales in Israel

• Sales of HSW (100%), water JV in China, grew by 25.5% (34% excluding FX) in Q3

2017 to NIS 131 million up from NIS 104 million in Q3 2016 and by 52% in YTD 2017 to NIS 376million up from NIS 247 million in YTD 2016

• Net profits at HSW almost doubled during the quarter (up 96%) to NIS 13 million

compared to NIS 7 million in Q3 2016 and up 93% YTD 2017 to NIS 39 million compared to NIS 20 million in YTD 2016

Shahar Florence

Strauss Group C.F.O.

13

Q3 2017

14

2,138 1,974 2,096 2,210 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 Q3'14 Q3'15 Q3'16 Q3'17

• Organic growth excluding FX : +8.3%

15

Prior to Food Law

Food Law NIS

• 16mm

Negative translation differences = NIS 34

Strong rong Sales es Growth wth Co Continues tinues 5.5% % in Q3

Q3 2017 17 Cons nsolid

• lidat

ated ed Sales les NIS

S mm; Non-GAA AAP

2,210 1,072 808 186 144 100% 49% 37% 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

Q3 2017 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

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

5.5% 12.2% 2.8%

• 6.7%
• 7.4%

8.3% 14.8% 2.8%

• 0.8%

8.5%

2,096 2,210 171 (23) (34)

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

Q3 Sales Bridge

17

+6.6% organic growth (1)

NIS mm; Non-GAAP; Q3’16 to Q3’17

(1) Excluding translation differences Primarily due to the weakening of the BRL (NIS -19mm) and the USD (NIS -12mm)

2,096 2,243.0 2,210 139 22 12 (2) (23) (34)

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

Q3 Sales Bridge

18 Decline in sales due to recall Higher volumes Primarily due to weakening of BRL (-19m) and the USD (-12m) Sales growth in Strauss-Water;

NIS mm; Non-GAAP; Q3'16 to Q3’17

Higher volumes in Brazil an Russia and selling prices (1)

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

Due Max Brenner sale end of Q2 2017

811 711 804 809 37.9% 36.0% 38.3% 36.6% 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 Q3'14 Q3'15 Q3'16 Q3'17

19

Q3 Consolidated Gross Profit and Gross Margins

NIS mm; Non-GAAP

Organic excl. FX: +4.2%

Negative translation differences NIS -12

809 312 354 143 36.6% 38.7% 33.0% 43.0%

• 100

200 300 400 500 600 700 800 900

Overall Group Strauss Israel Strauss Coffee Dips & Spreads + Other

Slightly higher volumes, affected by higher price of raw materials, namely milk

Q3 2017 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q3’16 GP & GM

20 Increase volumes in Brazil and Russia and higher selling prices in most countries Lower profits due to continued recall impact

D = 5mm D = -2mm D = 32mm D = -25mm

NIS 804 NIS 314 NIS 322 NIS 168 39.9% 47.5% 38.3% 33.7%

227 192 213 221 10.6% 9.7% 10.2% 10.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 140 150 160 170 180 190 200 210 220 230 240 Q3'14 Q3'15 Q3'16 Q3'17

21

Q3 Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

• Q3’17 / Q3’16: 3.4%
• excluding FX : 3.5%

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

Q3 EBIT Bridge

22

Total EBIT up 3.4%

NIS mm; Non-GAAP; Q3’16 to Q3’17

213 221 9

• 1

(1)

• 50
• 50

100 150 200 250

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

221 88 122 11

10.0% 10.9% 11.3% 0.1% 8.1

50 100 150 200 250

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

Q3 2017 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

Q3’16 EBIT & EBIT %

23

Sabra still affected by recall and amortization

• f intangible in

Salsa

Sales growth, volume and innovation

Decline in Max

• ffset

increased Water sales

D = 8mm D = 1mm D = 10mm D = -11mm D = 8mm NIS 213 NIS 87 NIS 112 NIS 11 NIS 3 5.6% 2.3% 10.2% 11.6% 11.1%

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

280 246 273 283 13.1% 12.5% 13.1% 12.8% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 19.0% 50 100 150 200 250 300 Q3'14 Q3'15 Q3'16 Q3'17

24

Q3 2017 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

Q3 2017 EBITDA and EBITDA Margins

NIS mm; Non-GAAP; % Margin

Q3’16 EBITDA and EBITDA Margins

25

283 110 138 12 23

12.8% 13.7% 12.9% 6.4% 16.1%

50 100 150 200 250 300

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

D = 10mm D = 0mm D = 11mm D = -8mm D = 7mm

NIS 273 NIS 110 NIS 127 NIS 20 NIS 16 10.0% 13.1% 13.3% 14.1% 10.0%

323 384 371 337 280 300 320 340 360 380 400 Q3'14 Q3'15 Q3'16 Q3'17

61 64 29 7

18.8% 16.6% 7.6% 2.1% 0.0% 5.0% 10.0% 15.0% 20.0%

• 10

20 30 40 50 60 70 Q3'14 Q3'15 Q3'16 Q3'17

Sabra Q3 Snapshot

NIS mm; Non-GAAP; for 100% share

Sales EBIT and EBIT Margins

Organic excl. FX

• 3.1%

26

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

Recall effect

648 787 1,008

Q3'15 Q3'16 Q3'17

185 222 288 28.5% 28.2% 28.6%

Q3'15 Q3'16 Q3'17

46 80 107

Q3'15 Q3'16 Q3'17

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

Q3 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 3oth, 2017. (1) EBIT before Other Expenses/ Income.

27

7.1% 10.2% 10.7%

119 86 92 125

5.6% 4.4% 4.4% 5.6%

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

• 10

10 30 50 70 90 110 130 150 Q3'14 Q3'15 Q3'16 Q3'17

1.12 0.80 0.86 1.09

Q3 Net Profit Increases 35% (attributed to the Company’s shareholders), Net Margins and EPS

NIS mm; Non-GAAP

EPS

28

Q3 Net Profit (attributed to the Company’s shareholders) Bridge

NIS mm; Non-GAAP; Q3'16 to Q3’17

29

92 125 8 14 22 (11)

Net Income Q3 2016 EBIT Finance exp. Non controlling interest Taxes on income Net Income Q3 2017

Net Debt and Net Debt /EBITDA (LTM)

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

30

1,846 1,813 1,640 2,285

1.9x 2.1x 1.6x 2.3x

• 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 Q3 2014 Q3 2015 Q3 2016 Q3 2017

Q3 GAAP and Non-GAAP Financial Highlights

NIS mm

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

31

GAAP Adjusted Non-GAAP Q3 2017 Q3 2016 % Chg. Q3 2017 Q3 2016 % Chg. Sales 1,399 1,378 1.6% 2,210 2,096 5.5% Gross Profit 545 553 (1.4%) 809 804 0.7% GP Margin 39.0% 40.1% 36.6% 38.3% Operating Profit 167 194 (13.7%) 221 213 3.4% EBIT Margin 12.0% 14.1% 10.0% 10.2% Net Profit (to SH) 94 69 37.0% 125 92 34.9% NP Margin 6.7% 5.0% 5.6% 4.4% Operating Cash Flow 86 131 181 132 Capex (1) (37) (35) (57) (50) Net debt 2,033 1,360 2,285 1,640 Change in WC (CF) (54) 4 (41) (60)

32

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

33

Appendix

YTD 2017

Additional information

34

YTD 2017 GAAP and Non-GAAP Financial Highlights

NIS mm

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

35

GAAP Adjusted Non-GAAP YTD 2017 YTD 2016 % Chg. YTD 2017 YTD 2016 % Chg. Sales 4,095 3,972 3.1% 6,335 5,909 7.2% Gross Profit 1,604 1,613 (0.6%) 2,342 2,263 3.5% GP Margin 39.2% 40.6% 37.0% 38.3% Operating Profit 514 587 (12.5%) 631 609 3.6% EBIT Margin 12.6% 14.8% 10.0% 10.3% Net Profit (to SH) 274 242 13.2% 338 277 21.8% NP Margin 6.7% 6.1% 5.3% 4.7% Operating Cash Flow 182 310 294 402 Capex (1) (129) (113) (189) (163) Net debt 2,033 1,360 2,285 1,640 Change in WC (CF) (198) 8 (285) (90)

6,060 5,743 5,909 6,335 1,000 2,000 3,000 4,000 5,000 6,000 7,000 YTD14 YTD15 YTD16 YTD17

Sales es grew w 7.2% % in YTD TD 2017 2017

Food

• d & b

beve verage age market rket grew ew a slower wer 0.7% % (1)

YTD 2017 Conso solida idate ted Sale les s NIS

S mm; Non-GAAP GAAP

36

Prior to Food Law

Food Law NIS

• 32mm

Positive translation differences = NIS 4

• Q3’17 / Q3’16: +7.2%
• Organic growth excluding FX : +7.3%

(1) Source: Storenext

YTD 2017 Sales by Segment

NIS mm; Non-GAAP; % sales contribution

’17/’16 Growth ’17/’16 Organic growth

• excl. FX

37

6,335 3,015 2,363 524 433 100% 48% 37% 8% 7%

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

• 1,000

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

7.2% 15.4% 3.9%

• 9.9%
• 1.8%

7.3% 12.8% 3.9%

• 5.5%

7.3%

5,909 6,335 430 4 (8)

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

YTD 2017 Sales Bridge

38

+7.3% organic growth (1)

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

(1) Excluding translation differences Primarily positive BRL translation (NIS +48mm)

• ffset by negative USD

translation (NIS -32mm) and others

5,909 6,365.7 6,335 342 89 30 4 (8) (31)

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

YTD 2017 Sales Bridge

39

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

Higher volumes and higher selling prices in most markets, mainly in Brazil 3C

Higher volumes Sales growth in Strauss-Water Decline in sales following recall

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

Primarily positive BRL translation (NIS +48mm)

• ffset by negative USD

translation (NIS -32mm) and others

2,369 2,129 2,263 2,342 39.1% 37.1% 38.3% 37.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

• 500

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

40

YTD 2017 Consolidated Gross Profit and Gross Margins

NIS mm; Non-GAAP

• excl. FX:

+5.0%

Negative translation differences NIS -9

YTD 2017 Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

YTD 2016 GP & GM

41

2,342 932 981 429 37.0% 39.5% 32.5% 44.8%

• 30

470 970 1,470 1,970 2,470

Overall Group Strauss Israel Strauss Coffee Dips & Spreads + Other

D = 79mm D = 25mm D = 119mm D = -65mm

NIS 2263 NIS 907 NIS 862 NIS 494 38.3% 33.0% 39.9% 48.3%

603 501 609 631 10.0% 8.7% 10.3% 10.0% 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 YTD14 YTD15 YTD16 YTD17

42

YTD 2017 Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

• YTD 2017 / YTD 2016: +3.6%
• excluding FX : +3.1%

609 631 3 19

500 520 540 560 580 600 620 640 660 680 700

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

YTD 2017 EBIT Bridge

43

Total EBIT up 3.6% EBIT exc. Translation differences up 3.1%

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

765 671 781 804 12.6% 11.7% 13.2% 12.7% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 500 550 600 650 700 750 800 850 YTD14 YTD15 YTD16 YTD17

44

YTD 2017 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

631 259 314 23 35 10.0% 11.0% 10.4%

4.3% 8.2%

• 100

200 300 400 500 600 700

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

YTD 2017 EBIT and EBIT Margins

NIS mm; Non-GAAP; % Margin

YTD 2016 EBIT & EBIT %

45

D = 22mm D = 11mm D = 39mm D = -39mm D = 11mm NIS 609 NIS 248 NIS 275 NIS 62 NIS 24 10.6% 5.4% 10.3% 10.5% 10.9%

YTD 2017 EBITDA and EBITDA Margins

NIS mm; Non-GAAP; % Margin

YTD 2016 EBITDA and EBITDA Margins

46

804 325 362 47 70

12.7% 13.8% 12.0%

9.0%

16.1%

100 200 300 400 500 600 700 800 900

Overall Group Strauss Israel Strauss Coffee Dips & Spreads Other

D = 23mm D = 7mm D = 41mm D = -35mm D = 10mm

NIS 781 NIS 318 NIS 321 NIS 82 NIS 60 13.2% 12.3% 14.0% 13.5% 14.2%

287 219 277 338

4.7% 3.8% 4.7% 5.3%

• 1.0%

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

• 50

100 150 200 250 300 350 400 YTD14 YTD15 YTD16 YTD17

2.69 2.05 2.58 3.04

YTD 2017 Net Profit Up 21.8% (attributed to the Company’s shareholders), Net Margins and EPS

NIS mm; Non-GAAP

EPS

47

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

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

48

277 338 9 22 33 (3)

Net Income, first nine months 2016 Taxes on income EBIT Non controlling interest Finance exp. Net Income, first nine months 2017

145 131 144 63 15.6% 12.2% 13.1% 6.6% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

• 20

40 60 80 100 120 140 160 YTD14 YTD15 YTD16 YTD17 931 1,078 1,095 950 800 850 900 950 1,000 1,050 1,100 1,150 YTD14 YTD15 YTD16 YTD17

Sabra YTD 2017 Snapshot

NIS mm; Non-GAAP; for 100% share

Sales EBIT and EBIT Margins

Organic

• excl. FX:
• 7.9%

49

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

356 589 738 30.2% 27.1% 27.3%

YTD15 YTD16 YTD17

155 185 250

8.5% 8.5% 9.2%

YTD15 YTD16 YTD17

1,825 2,170 2,707

YTD15 YTD16 YTD17

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

YTD 2017 Snapshot

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

Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C). Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of June 30st, 2017. (1) EBIT before Other Expenses/ Income.

50

Appendix

Strauss Group

51

52

Local Currencies vs. the NIS

Current exchange rate as of June 30th, 2017.

RUB BRL AUD PLN CAD RSD USD EUR CHF RON MXN CNY UAH GBP YTD'17/YTD'16 10.3% 5.1%

• 2.5%
• 3.8%
• 4.5%
• 5.2%
• 5.5%
• 5.9%
• 6.0%
• 7.3%
• 8.5%
• 8.7%
• 9.2%
• 13.7%

Q3'17/Q3'16 2.5%

• 4.1%
• 2.6%

0.4%

• 2.8%

1.3%

• 6.4%
• 1.6%
• 5.2%
• 4.0%
• 1.7%
• 6.5%
• 8.2%
• 7.0%
• 15.0%
• 10.0%
• 5.0%

0.0% 5.0% 10.0% 15.0%

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

53

Local Currencies vs. the USD

Current exchange rate as of June 30th, 2017.

RUB BRL ILS PLN RSD RON UAH YTD'17/YTD'16 16.7% 11.2% 5.9% 1.9% 0.5%

• 1.8%
• 3.9%

Q3'17/Q3'16 9.5% 2.4% 6.9% 7.3% 8.3% 2.5%

• 1.9%
• 5.0%

0.0% 5.0% 10.0% 15.0% 20.0%

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

Appendix

Strauss Israel

54

Strauss Israel Non-GAAP Financial Highlights Q3 2017 NIS mm

55

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

Strauss Israel (Non GAAP) YTD 2017 YTD 2016 % Chg. Q3 2017 Q3 2016 % Chg. Revenue: H&W 1,554 1,491 4.2% 552 526 5.0% F&I 809 783 3.3% 256 260 (1.6%) Total Revenue 2,363 2,274 3.9% 808 786 2.8% Total Gross Profit 932 907 2.8% 312 314 (0.2%)

Gross Margins

39.5% 39.9% (0.4%) 38.7% 39.9% (1.2%)

EBIT: H&W 170 162 4.9% 62 63 (1.4%)

Margins

10.9% 10.9% 0.1% 11.3% 12.0% (0.7%)

F&I 89 86 3.5% 26 24 6.9%

Margins

11.0% 11.0% 0.0% 10.1% 9.3% 0.8%

Total EBIT 259 248 4.4% 88 87 0.9%

Margins

11.0% 10.9% 0.1% 10.9% 11.1% (0.2%)

EBITDA: H&W 211 205 2.8% 76 77 (1.7%)

Margins

13.6% 13.7% (0.2%) 13.8% 14.7% (0.9%)

F&I 114 113 1.0% 34 33 3.2%

Margins

14.1% 14.5% (0.3%) 13.4% 12.8% 0.6%

Total EBITDA 325 318 2.1% 110 110 (0.2%)

Margins

13.8% 14.0% (0.2%) 13.7% 14.1% (0.4%)

2,289 2,178 2,274 2,363

• 100

400 900 1,400 1,900 2,400 2,900 YTD14 YTD15 YTD16 YTD17

YTD 2017 Strauss Israel Sales

NIS mm; Non-GAAP

56

786 747 786 808

• 100

200 300 400 500 600 700 800 900 Q3'14 Q3'15 Q3'16 Q3'17

Q3 Strauss Israel Sales

NIS mm; Non-GAAP

57

YTD 2017 Strauss Israel EBIT and EBIT Margins

NIS mm; Non-GAAP

58

251 222 248 259 11.0% 10.2% 10.9% 11.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

• 50

100 150 200 250 300 YTD14 YTD15 YTD16 YTD17

85 86 87 88 10.8% 11.4% 11.1% 10.9% 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 90 100 Q3'14 Q3'15 Q3'16 Q3'17

Q3 Strauss Israel EBIT and EBIT Margins

NIS mm; Non-GAAP

59

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

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

2015 Avg. 374 2014 Avg. 440 2017 Avg. 444 2016 Avg. 500

Futures

Sugar

Futures

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

2015 Avg. 2,101 2014 Avg. 1,923 2017 Avg. 1,715 2017 Avg. 2,188

Cocoa

Futures

Appendix

Strauss Coffee

63

Strauss Coffee Non-GAAP Financial Highlights

Q3 2017 NIS mm

64

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

Strauss Coffee (Non GAAP) YTD 2017 YTD 2016 % Chg. Q3 2017 Q3 2016 % Chg. Revenue: Israel 537 526 1.9% 176 179 (2.3%) International 2,478 2,086 18.8% 896 776 15.6% Total Revenue 3,015 2,612 15.4% 1,072 955 12.2% Total Gross Profit 981 862 13.8% 354 322 10.2%

Gross Margins

32.5% 33.0% (0.4%) 33.0% 33.7% (0.6%)

EBIT: Israel 84 79 6.3% 27 27 2.0%

Margins

15.6% 14.9% 0.6% 15.3% 14.7% 0.7%

International 230 196 17.3% 95 85 10.5%

Margins

9.3% 9.4% (0.1%) 10.5% 10.9% (0.5%)

Total EBIT 314 275 14.1% 122 112 8.5%

Margins

10.4% 10.5% (0.1%) 11.3% 11.6% (0.4%)

EBITDA: Israel 93 87 6.7% 30 29 3.3%

Margins

17.3% 16.5% 0.8% 17.1% 16.2% 0.8%

International 269 234 14.9% 108 98 9.7%

Margins

10.9% 11.2% (0.4%) 12.0% 12.7% (0.7%)

Total EBITDA 362 321 12.6% 138 127 8.3%

Margins

12.0% 12.3% (0.3%) 12.9% 13.3% (0.5%)

Strauss Coffee Non-GAAP Sales by Geography

YTD 2017 & Q3 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.

65 Strauss Coffee Sales % Change % Change YTD 2017 YTD 2016 NIS Local Currency Q3 2017 Q3 2016 NIS Local Currency Israel 537 526 1.9% 1.9% 176 179 (2.3%) (2.3%) International: Três Corações Joint Venture (Brazil) 1,539 1,188 29.5% 24.5% 565 461 22.3% 27.5% CIS 457 409 11.6% 7.1% 160 147 9.3% 9.9% Poland 222 205 8.4% 12.6% 78 70 11.5% 10.9% Romania 162 188 (13.4%) (6.6%) 56 60 (5.6%) (1.6%) Serbia 98 96 2.7% 8.1% 37 38 (0.6%) (1.9%) Total International 2,478 2,086 18.8% 16.7% 896 776 15.6% 18.9% Total Coffee 3,015 2,612 15.4% 13.7% 1,072 955 12.2% 14.8%

2,793 2,557 2,612 3,015

• 500

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

YTD 2017 Strauss Coffee Sales

NIS mm; Non-GAAP

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

Organic growth +12.8%

66

1,019 876 955 1,072

• 200

400 600 800 1,000 1,200 Q3'14 Q3'15 Q3'16 Q3'17

Q3 2017 Strauss Coffee Sales

NIS mm; Non-GAAP

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

Organic growth +14.8%

67

292 199 275 314 10.4% 7.8% 10.4% 10.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

• 50

100 150 200 250 300 350 YTD14 YTD15 YTD16 YTD17

YTD 2017 Strauss Coffee EBIT and EBIT Margins

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

68

NIS mm; Non-GAAP

113 63 110 121 11.1% 7.2% 11.7% 11.4% 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 Q3'14 Q3'15 Q3'16 Q3'17

Q3 Strauss Coffee EBIT and EBIT Margins

NIS mm; Non-GAAP

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

69

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

2015 Avg. 1,715 2014 Avg. 2,003 2017 Avg. 2,088 2016 Avg. 1,742

Futures

Robusta

Futures

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

2015 Avg. 134 2014 Avg. 178 2017 Avg. 135 2016 Avg. 136

Arabica

Futures

NY Arabica and Brazil Arabica

Indexed since 9.11.2012

Source : Bloomberg

72

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

Appendix

Sabra & Obela

73

Strauss D&S Non-GAAP Financial Highlights

Q3 2017 NIS mm; 50% share

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

74

Dips & Spreads (Non GAAP) YTD 2017 YTD 2016 % Chg. Q3 2017 Q3 2016 % Chg. Revenue: Sabra (50%) 475 547 (13.2%) 168 185 (9.2%) Obela (50%) 49 34 44.0% 17 14 26.3% Total Revenue 524 581 (9.9%) 186 199 (6.7%) EBIT: Sabra (50%) 31 72 (56.3%) 3 14 (75.8%)

Margins

6.6% 13.1% (6.5%) 2.1% 7.6% (5.5%)

Obela (50%) (9) (10)

NM

(3) (3)

NM

Margins

NM NM NM NM NM NM

Total EBIT 23 62 (63.3%)

• 11

(98.8%)

Margins

4.3% 10.6% (6.3%) 0.1% 5.6% (5.5%)

Total EBITDA 47 82 (42.7%) 12 20 (40.5%)

Margins

9.0% 14.2% (5.2%) 6.4% 10.0% (3.6%)

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

75

2017 Avg. 1,184 2015 Avg. 1,324 2016 Avg. 1,108 2014 Avg. 2,121

Appendix

Strauss Water

76

408 362 371 405 330 340 350 360 370 380 390 400 410 420 YTD14 YTD15 YTD16 YTD17

YTD 2017 Strauss Water Non-GAAP Sales

Non-GAAP; NIS mm

77

135 122 133 144 110 115 120 125 130 135 140 145 150 Q3'14 Q3'15 Q3'16 Q3'17

Q3 2017 Strauss Water Non-GAAP Sales

Non-GAAP; NIS mm

78