Financial Results Q 1 201 9 Earnings Presentation May 20 th , 2019 1 - - PowerPoint PPT Presentation

Strauss Group Financial Results

Q1 2019 Earnings Presentation May 20th, 2019

1

Disclaimer

This presentation does not constitute an offering to purchase or sell securities of Strauss Group Ltd. (the “Company”) or an offer for the receipt of such offerings. The 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

• rder 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

• f 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

• r 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. 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 outside 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.

2

GAAP to Non-GAAP Reconciliations

2

Financial Highlights

Q1 2019

3 3

Q1'19 Sales: NIS 2106mm; growth: -2.8% Q1'19 Organic growth excluding FX: -0.1% Q1'19 gross margins: 40.1% (up 170 bps vs. Q1'18) EBIT and EBIT margins: NIS 269mm (up 5.7%); 12.8% (up 110 bps vs. Q1'18) Net income and net margins: NIS 172mm (up 16.8%); 8.1% (up 130 bps vs. Q1'18) EPS: 1.49 (up 16.3% VS. Q1'18) The group paid a dividend of NIS 200mm (NIS 1.74 per share) on April 2nd, 2019

2016-2019 FY | Strauss Group growth journey

Net Sales EBIT & Net Income

4% CAGR growth from 2016

With key currencies devaluing

+8% CAGR EBIT increase in 3Y +17% CAGR Net Income increase in 3Y

EPS

4

1,880 2,083 2,167 2,106

10.8% 4.0%

• 2.8%

1.00 1.08 1.28 1.49 213 223 254 269 107 116 146 172 11.3% 10.7% 11.7% 12.8% 5.7% 5.5% 6.8% 8.1%

EBIT Net Income % EBIT % NI

4.8% 13.9% 5.7% 8.4% 25.7% 16.8%

Quarter Highlights

Strauss Israel

• Once again S. Israel exceeds the F&B market with top line

growth of 1.3% versus a decline in the local F&B market of 0.6% during Q1 2019

• These results were attained despite the negative impact of

the Passover timing this year in comparison to last

• Innovation and product mix lead growth which is achieved

yet again with no pricing increase

• Market share continues to expand to 12.2% from 11.9% in

the corresponding quarter

• Gross margins improve mainly due to product mix

Strauss Coffee

• Top line growth declines during the quarter by -9.4% in NIS,

excluding FX sales were down -3.6%, the negative currency impact from the BRL was NIS 44 mm

• International coffee sales declined -5.4% in local currencies
• In local currency Brazil (1) was down 4.1% and CIS down -5.7%

mainly due to lower selling prices as a result of lower green coffee prices;

• Growth in Israel was once again strong up 2.5% during Q1

2019 as margins continue to expand

• 3C (1) market share in Brazil R&G value grew to 28.1% (2) for Q1

2019, up from 27.2% during the corresponding quarter

• Gross margins expanded due to lower green coffee prices

(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

5

Quarter Highlights

International Dips & Spreads

• The Int’l D&S business grew 6.5% during Q1 2019; Sabra

grew 5.8% and Obela 11.6%

• Hummus market share in North America was at 61.3% during

Q1 2019 up from 59.4% in the corresponding quarter

• EBIT continues to improve dramatically more than doubling

to NIS 25 million from NIS11 million in Q1 2018

• EBIT margins continue to expand – for Sabra up to 16% from

8.9% in Q1 2018, and for the blended company 13% up from 6.3%

• Obela sales were up 11.6% during Q1 2019, 15.8%
• rganically excluding FX
• Market penetration efforts continue in new markets –

Western Europe and New Zealand

• Sabra continues to be a global market leader and the no. 1

producer of Hummus in North America

Strauss Water

• Strauss Water sales (excluding HSW) were up 6% during the

quarter on increased sales of water machines and a growing customer base

• EBIT was up 67.7% during Q1 2019, (including net income from

HSW) as a result of improved efficiency measures and higher profits from HSW

• Sales of HSW (1) (100%), water JV in China, grew by 27.6% (28.8%

excluding FX) in Q1 2019 to NIS 155 million from NIS 121 million in Q1 2018

• Net profits at HSW grew by 134% (135.8% excluding FX) during

the quarter to NIS 16 million from 7 million

6 6

(1) Note: HSW revenues are not included in Strauss water results; net income is added to Strauss water EBIT in Non GAAP management reports

Q1 2019

7

1,880 2,083 2,167 2,106 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 Q1'16 Q1'17 Q1'18 Q1'19

Sales

Q1 2019 Consolidated Sales NIS mm Non-GAAP Q1 2019 Sales by Segment NIS mm; Non-GAAP; % sales contribution

2,106 894 877 192 143 100% 42% 42% 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

'19/’18 Growth '19/’18 Organic growth

• excl. FX

Negative translation differences = NIS 50 million

Organic growth excluding FX : -0.1% 8

• 2.8%
• 9.4%

1.3% 6.5% 6.0% na

• 0.1%
• 3.7%

1.3% 7.5% 6.0% na

2,167 2,106 13 11 8 (9) (34) (50)

Group Sales, Q1 2018 International Dips & Spreads Strauss Israel Strauss Water M&A Coffee Translation Differences Effect Group Sales, Q1 2019

Q1 Sales Bridge

NIS mm; Non-GAAP; Q1’18 to Q1’19

9

Primarily due to the weakening of the BRL (NIS -44mm) Higher volumes due to ongoing innovation and better mix Lower sales in Brazil and Eastern Europe due to lower green coffee prices Partially offset by stronger sales in Israel Mainly Salsa disposal Sales growth in both Israel and the UK, increased customer base Sales growth in Hummus and Guacamole

726 780 833 845 38.6% 37.4% 38.4% 40.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 500 550 600 650 700 750 800 850 900 Q1'16 Q1'17 Q1'18 Q1'19

Gross Profit

Q1 2019 Consolidated Gross Profit and Gross Margins NIS mm; Non-GAAP Q1 2019 Gross Profit and Gross Margins NIS mm; Non-GAAP; % Margin

10

Q1 2018 GP & GM 845 350 333 162 40.1% 39.9% 37.2% 48.4%

• 100

200 300 400 500 600 700 800 900

Overall Group Strauss Israel Strauss Coffee Spreads, Water & Other

• Excl. FX: 3.1%

Negative translation differences NIS - 14 million

Higher volumes, and favorable sales mix Higher gross margins due to lower green coffee prices Higher gross margins in Water and Sabra

(1) Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C) D = 12mm D = 9mm D = -19mm D = 22mm

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

EBIT

Q1 2019 Consolidated EBIT and EBIT Margins NIS mm; Non-GAAP Q1 EBIT Bridge NIS mm; Non-GAAP; Q1’18 to Q1’19

213 223 254 269 11.3% 10.7% 11.7% 12.8% 0.0% 5.0% 10.0% 15.0% 20.0% 50 100 150 200 250 300 Q1'16 Q1'17 Q1'18 Q1'19

Total EBIT up 5.7% 11

• Excl. FX:

7.7%

254 269 14 6 3 (1) (7)

Operating profit, Fourth quarter 2018 Dips & Spreads Strauss Water Strauss Israel Other Strauss Coffee Operating profit, Fourth quarter 2019

Negative translation differences NIS - 5 million

269 112 112 25 16 4 12.8% 12.7% 12.5% 13.0% 11.4%

• 50

100 150 200 250 300

Overall Group Strauss Isarel Strauss Coffee Dips & Spreads Water Other

Q1 2019 EBIT and EBIT Margins | NIS mm; Non-GAAP; % Margin

Q1’18 EBIT & EBIT %

D = 15mm D = 3mm D = -7mm D = 14mm D = 6mm D = -1mm NIS 254 NIS 109 NIS 119 NIS 11 NIS 10 NIS 5 12.6% NA 6.3% 7.2% 11.7% 12.0% Higher volumes and improved margins in Sabra

• ffset by losses in

Obela

Sales growth, volume mix and innovation, margin expansion mainly due to mix Lower sales were partially offset by strong profit margins in Israel and Brazil due to lower green coffee prices

Higher volumes and improved margins in all geographies

12

(1) Note: Três Corações joint venture (Brazil): a company jointly held by the Group (50%) and by the São Miguel Group (50%) (3C) (2) Water EBIT includes net profits from HSW (3) Excluding FX Strauss Coffee EBIT was down NIS 0.8mm on Q1 2018

269 278 311 349 14.3% 13.4% 14.4% 16.6% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% 17.0% 19.0% 50 100 150 200 250 300 350 400 Q1'16 Q1'17 Q1'18 Q1'19

EBITDA

Q1 2019 Consolidated EBITDA and EBITDA Margins NIS mm; Non-GAAP Q1 2019 EBITDA and EBITDA Margins NIS mm; Non- GAAP; % Margin

Q1’18 EBITDA and EBITDA Margins

349 144 139 32 25 9

16.6% 16.5% 15.5% 16.6% 17.5%

na

50 100 150 200 250 300 350 400

Overall Group Strauss Israel Strauss Coffee D&S Water Other

D = 38mm D = 12mm D = 3mm D = 14mm D = 10mm D = -1mm

NIS 311 NIS 132 NIS 136 NIS 18 NIS 15 NIS 10 10.8% na 9.9% 14.4% 13.8% 15.3%

13 * Note that Q1’19 includes additional NIS25 mm due to new IFRS16 rules; excluding this growth is 4.2%

Sabra Q1 Snapshot

NIS mm; Non-GAAP; for 100% share

Sales EBIT and EBIT Margins

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

350 288 322 341

• 50

100 150 200 250 300 350 400 Q1'16 Q1'17 Q1'18 Q1'19

Organic excl. FX 6.5%

14

61 38 29 54

17.4% 13.0% 8.9% 16.0% 0.0% 5.0% 10.0% 15.0% 20.0%

• 10

20 30 40 50 60 70 Q1'16 Q1'17 Q1'18 Q1'19

35 83 63

Q1'17 Q1'18 Q1'19

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

Q1 Snapshot | BRL mm for 100% ownership and including inter-company sales

Sale ales GP P and nd GM EB EBIT and nd EB EBIT Mar argin ins (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 , 2019. (1) EBIT before Other Expenses/ Income.

760 885 850

Q1'17 Q1'18 Q1'19

181 254 244 23.7% 28.7% 28.7%

Q1'17 Q1'18 Q1'19 4.6% 9.4% 7.4%

15

146 172 21 15 3 (13)

Net Income, Q1 2018 Taxes on income EBIT Non controlling interest Finance exp. Net Income, Q1 2019

107 116 146 172

5.7% 5.6% 6.8% 8.1%

3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0%

• 20

40 60 80 100 120 140 160 180 200 Q1'16 Q1'17 Q1'18 Q1'19

Net Income

Q1 2019 Net Profit (attributed to the Company’s shareholders), Net Margins and EPS NIS mm; Non-GAAP Q1 Net Profit (attributed to the Company’s shareholders) Bridge NIS mm; Non-GAAP; Q1’18 to Q1’19

1.00 1.08 1.28 1.49

16

Net Debt and Net Debt /EBITDA (LTM)

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

1,832 2,776 2,208 2,344

2.0x 2.8x 2.1x 1.9x

• 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 2016 * Q1 2017 * Q1 2018 Q1 2019

Note: 1. Net debt increases by NIS 353 mm following new IFRS 16 reporting rules 2. 1.9x in Q1 2019 reflects the adjusted LTM EBITDA following IFRS-16 reporting rules

17

* Net Debt figures for Q1 2016 and 2017 were reclassified in Q4 2018; see note 2.6 in annual report

Q1 GAAP and Non-GAAP | Financial Highlights

NIS mm

GAAP Adjusted Non-GAAP Q1 2019 Q1 2018 % Chg. Q1 2019 Q1 2018 % Chg. Sales 1,430 1,446 (1.1%) 2,106 2,167 (2.8%) Gross Profit 587 601 (2.3%) 845 833 1.4% GP Margin 41.1% 41.6% 40.1% 38.4% Operating Profit 242 249 (2.4%) 269 254 5.7% EBIT Margin 17.0% 17.2% 12.8% 11.7% Net Profit (to SH) 156 153 1.9% 172 146 16.8% NP Margin 10.9% 10.6% 8.1% 6.8% Operating Cash Flow 90 61 51 89 Capex (46) (46) (70) (70) Net debt 2,114 2,018 2,344 2,208 Change in WC (CF) (111) (123) (235) (174) 18

Currencies

Local Currencies vs. the NIS Local Currencies vs. the USD

19

RSD EUR PLN GBP RON CNY CHF CAD USD MXN UAH AUD RUB BRL Q1'19/Q1'18 -2.6% -2.8% -5.5% -1.6% -4.3% -0.8% 0.0% 0.0% 5.3% 2.6% 5.1% -4.6% -9.6% -9.3%

• 12.0%
• 10.0%
• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0%

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

RSD PLN RON ILS UAH RUB BRL Q1'19/Q1'18

• 7.4%
• 10.2%
• 9.1%
• 5.0%
• 0.1%
• 14.1%
• 13.8%
• 16.0%
• 14.0%
• 12.0%
• 10.0%
• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0%

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

Strauss Israel

Strauss Israel Non-GAAP Financial Highlights Q1 2019 NIS mm

Strauss Israel (Non GAAP) Q1 2019 Q1 2018 % Chg. Revenue: H&W 538 532 1.3% F&I 339 334 1.3% Total Revenue 877 866 1.3% Total Gross Profit 350 341 2.6%

Gross Margins

39.9% 39.4% 0.5%

EBIT: H&W 55 54 1.8%

Margins

10.3% 10.2% 0.1%

F&I 57 55 2.6%

Margins

16.6% 16.4% 0.2%

Total EBIT 112 109 2.2%

Margins

12.7% 12.6% 0.1%

EBITDA: H&W 74 68 9.0%

Margins

13.8% 12.8% 1.0%

F&I 70 64 9.1%

Margins

20.8% 19.3% 1.5%

Total EBITDA 144 132 9.1%

Margins

16.5% 15.3% 1.2%

20

Q1 2019 Strauss Israel Sales NIS mm; Non-GAAP

776 818 866 877 720 740 760 780 800 820 840 860 880 900 Q1'16 Q1'17 Q1'18 Q1'19 21

Strauss Israel

Q1 2019 Strauss Israel EBIT & EBIT Margins NIS mm; Non-GAAP

98 105 109 112 12.7% 12.9% 12.6% 12.7% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0% 90 95 100 105 110 115 Q1'16 Q1'17 Q1'18 Q1'19

22

Strauss Israel

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 2.03 2.00 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 Q1 Q2 Q3 Q4 Q1 Q2

Target Milk Price (NIS per liter)

Prices exclude Strauss transportation costs

23

100 200 300 400 500 600 700 800 Oct 01, 2020 Aug 01, 2020 Mar 01, 2020 Dec 01, 2019 Oct 01, 2019 Aug 01, 2019 Mar 28, 2019 Mar 04, 2019 Feb 06, 2019 Jan 11, 2019 Dec 13, 2018 Nov 19, 2018 Oct 24, 2018 Sep 28, 2018 Sep 04, 2018 Jun 25, 2018 May 30, 2018 May 02, 2018 Apr 06, 2018 Mar 09, 2018 Feb 13, 2018 Jan 18, 2018 Dec 20, 2017 Nov 24, 2017 Oct 31, 2017 Oct 05, 2017 Sep 11, 2017 Aug 15, 2017 Jul 20, 2017 Jun 26, 2017 May 31, 2017 May 05, 2017 Apr 06, 2017 Mar 13, 2017 Feb 15, 2017 Jan 20, 2017 Dec 22, 2016 Nov 28, 2016 Nov 02, 2016 Oct 07, 2016 Sep 13, 2016 Aug 17, 2016 Jul 22, 2016 Jun 28, 2016 Jun 02, 2016 May 06, 2016 Apr 11, 2016 Mar 14, 2016 Feb 17, 2016 Jan 22, 2016 Dec 28, 2015 Dec 02, 2015 Nov 06, 2015 Oct 13, 2015 Sep 17, 2015 Aug 21, 2015 Jul 28, 2015 . . 1 . . 1 1 . . 1 Apr 15, 2015 Mar 18, 2015 Feb 20, 2015 Jan 27, 2015

2016 Avg. 500 2019 Avg. 341 2017 Avg. 433 2015 Avg. 374

Futures

London Sugar Historical & Futures Prices 2015-2019 ($\T)

24 2018 Avg. 347

500 1000 1500 2000 2500 Mar 01, 2020 Dec 01, 2020 Sep 01, 2020 Jul 01, 2020 Mar 01, 2020 Dec 01, 2019 Sep 01, 2019 Jul 01, 2019 Apr 11, 2019 Mar 15, 2019 Feb 18, 2019 Jan 22, 2019 Dec 19, 2018 Nov 22, 2018 Oct 26, 2018 Oct 01, 2018 Sep 04, 2018 Aug 07, 2018 Jun 25, 2018 May 29, 2018 Apr 30, 2018 Apr 03, 2018 Mar 05, 2018 Feb 06, 2018 Jan 09, 2018 Dec 11, 2017 Nov 13, 2017 Oct 17, 2017 Sep 20, 2017 Aug 23, 2017 Jul 27, 2017 Jun 30, 2017 Jun 05, 2017 May 09, 2017 Apr 07, 2017 Mar 13, 2017 Feb 14, 2017 Jan 18, 2017 Dec 19, 2016 Nov 22, 2016 Oct 26, 2016 Sep 29, 2016 Sep 02, 2016 Aug 05, 2016 Jul 11, 2016 Jun 14, 2016 May 17, 2016 Apr 19, 2016 Mar 21, 2016 Feb 23, 2016 Jan 27, 2016 Dec 31, 2015 Dec 04, 2015 Nov 09, 2015 Oct 13, 2015 Sep 16, 2015 Aug 19, 2015 Jul 23, 2015 . . 1

• 1. . 1
• 1. . 1

Apr 02, 2015 Mar 06, 2015 Feb 09, 2015 Jan 13, 2015

London Cocoa Historical & Futures Prices 2015-2019 (GBP\T)

Futures

2017 Avg. 1,771 2019 Avg. 1,725 2015 Avg. 2,101 2016 Avg. 2,188 25 2018 Avg. 1,680

Strauss Coffee Non-GAAP Financial Highlights

Q1 2019 NIS mm

Strauss Coffee (Non GAAP) Q1 2019 Q1 2018 % Chg. Revenue: Israel 222 217 2.5% International 672 769 (12.7%) Total Revenue 894 986 (9.4%) Total Gross Profit 333 352 (5.6%)

Gross Margins

37.2% 35.7% 1.5%

EBIT: Israel 58 41 39.8%

Margins

26.0% 19.0% 6.9%

International 54 78 (30.0%)

Margins

8.1% 10.1% (2.0%)

Total EBIT 112 119 (5.7%)

Margins

12.5% 12.0% 0.5%

EBITDA: Israel 66 45 48.6%

Margins

29.8% 20.6% 9.3%

International 73 91 (20.5%)

Margins

10.8% 11.9% (1.1%)

Total EBITDA 139 136 2.1%

Margins

15.5% 13.8% 1.8%

26

Strauss Coffee Non-GAAP Sales by Geography

Q1 2019 NIS mm

Strauss Coffee Sales % Change Q1 2019 Q1 2018 NIS Local Currency Israel 222 217 2.5% 2.5% International: Três Corações Joint Venture (Brazil) 410 472 (13.1%) (4.1%) CIS 119 133 (10.4%) (5.7%) Poland 71 84 (16.2%) (11.3%) Romania 43 50 (14.2%) (10.1%) Serbia 29 30 (4.0%) (1.1%) Total International 672 769 (12.7%) (5.4%) Total Coffee 894 986 (9.4%) (3.6%)

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 , 2019.

27

780 961 986 894 200 300 400 500 600 700 800 900 1,000 1,100 Q1'16 Q1'17 Q1'18 Q1'19

Q1 2019 Strauss Coffee Sales NIS mm; Non-GAAP

• Excl. FX
• 3.6%

28

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

80 90 119 112 10.2% 9.5% 12.0% 12.5% 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 Q1'16 Q1'17 Q1'18 Q1'19

Q1 2019 Strauss Coffee EBIT & EBIT Margins NIS mm; Non-GAAP

• Excl. FX
• 1.1%

29

500 1000 1500 2000 2500 3000 01 Nov, 2020 01 Sep, 2020 01 Jul, 2020 01 May, 2020 01 Mar, 2020 Jan 01, 2020 Nov 01, 2019 Jul 01, 2019 May 01, 2019 Apr 09, 2019 Mar 14, 2019 Feb 18, 2019 Jan 23, 2019 Dec 27, 2018 Nov 29, 2018 Nov 05, 2018 Oct 10, 2018 Sep 14, 2018 Aug 20, 2018 Jul 25, 2018 Jun 29, 2018 Jun 05, 2018 May 09, 2018 Apr 12, 2018 Mar 15, 2018 Feb 19, 2018 Jan 24, 2018 Dec 27, 2017 Nov 29, 2017 Nov 02, 2017 Oct 09, 2017 Sep 13, 2017 Aug 17, 2017 Jul 24, 2017 Jun 28, 2017 Jun 02, 2017 May 09, 2017 Apr 10, 2017 Mar 15, 2017 Feb 17, 2017 Jan 25, 2017 Dec 29, 2016 Dec 01, 2016 Nov 07, 2016 Oct 12, 2016 Sep 16, 2016 Aug 22, 2016 Jul 27, 2016 Jul 01, 2016 Jun 07, 2016 May 11, 2016 Apr 14, 2016 Mar 16, 2016 Feb 19, 2016 Jan 26, 2016 Dec 31, 2015 Dec 07, 2015 Nov 11, 2015 Oct 16, 2015 Sep 22, 2015 Aug 26, 2015 Jul 31, 2015 . . 1

• 11. . 1

1 . . 1 Apr 20, 2015 Mar 23, 2015 Feb 25, 2015 Jan 30, 2015 Jan 06, 2015

Robusta Historical & Futures Prices 2015-2019 ($\T)

Futures

2017 Avg. 2,038 2019 Avg. 1,468 2015 Avg. 1,715 2016 Avg. 1,742 30 2018 Avg. 1,691

20 40 60 80 100 120 140 160 180 200 Mar 01, 2022 Dec 01, 2021 Sep 01, 2021 Jul 01, 2021 Mar 01, 2021 Dec 01, 2020 Sep 01, 2020 Jul 01, 2020 Dec 01, 2019 Sep 01, 2019 Jul 01, 2019 May 01, 2019 Mar 21, 2019 Feb 21, 2019 Jan 23, 2019 Dec 21, 2018 Nov 23, 2018 Oct 25, 2018 Sep 27, 2018 Aug 29, 2018 Aug 01, 2018 Jul 02, 2018 Jun 04, 2018 Mar 29, 2018 Mar 01, 2018 Jan 31, 2018 Jan 02, 2018 Dec 01, 2017 Nov 02, 2017 Oct 05, 2017 Sep 07, 2017 Aug 09, 2017 Jul 12, 2017 Jun 13, 2017 May 15, 2017 Apr 17, 2017 Mar 17, 2017 Feb 16, 2017 Jan 19, 2017 Dec 19, 2016 Nov 18, 2016 Oct 21, 2016 Sep 23, 2016 Aug 25, 2016 Jul 28, 2016 Jun 29, 2016 Jun 01, 2016 May 03, 2016 Apr 05, 2016 Mar 07, 2016 Feb 05, 2016 Jan 06, 2016 Dec 07, 2015 Nov 06, 2015 Oct 09, 2015 Sep 11, 2015 Aug 13, 2015 1 . . 1 1 . . 1

• 19. . 1

Apr 21, 2015 Mar 23, 2015 Feb 23, 2015 Jan 23, 2015

Arabica Historical & Futures Prices 2015-2019 (Cent\Lb)

2017 Avg. 133 2019 Avg. 97

Futures

2015 Avg. 134 2016 Avg. 136 31 2014 Avg. 112

NY Arabica and Brazil Arabica

Indexed since 5.7.2014

Source : Bloomberg

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

32

INTERNATIONAL DIPS & SPREADS

Strauss D&S Non-GAAP Financial Highlights Q1 2019 NIS mm; 50% share

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

Dips & Spreads (Non GAAP) Q1 2019 Q1 2018 % Chg. Revenue: Sabra (50%) 170 161 5.8% Obela (50%) 22 20 11.6% Total Revenue 192 180 6.5% EBIT: Sabra (50%) 27 14 90.8%

Margins

16.0% 8.9% 7.1%

Obela (50%) (2) (3) NM

Margins

NM NM NM

Total EBIT 25 11 118.0%

Margins

13.0% 6.3% 6.6%

EBITDA: Total EBITDA 32 18 78.4%

Margins

16.6% 9.9% 6.7%

33

500 1000 1500 2000 2500 3000

HUMERA SESAME PRICES 2015-2019 (USD/METRIC TON)

2019 Avg. 1,617 2015 Avg. 1,324 2016 Avg. 1,109 2017 Avg. 1,193 34 2018 Avg. 1,530

Strauss Water

Q1 2019 Strauss Water Non-GAAP Sales; NIS mm

35 114 125 135 143

• 20

40 60 80 100 120 140 160 Q1'16 Q1'17 Q1'18 Q1'19

Strauss Water

Q1 2019 Strauss Water Non-GAAP EBIT NIS mm

Note: 1. Water EBIT includes NIS 7 million net profits from HSW in 2019 and NIS 3 million in 2018

36 3 7 10 16 2 4 6 8 10 12 14 16 18 Q1'16 Q1'17 Q1'18 Q1'19

Thank You

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