strauss group financial results

Strauss Group Financial ResultsQ4 and YTD 2020 Earnings Presentation | March 22nd , 2021

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 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.

22

GAAP to Non-GAAP Reconciliations

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.

Coronavirus Update

General

• Group Management is vigilantly managing the event and continues to assess and manage the risks on an ongoing basis in all

countries of operations, since due to its nature this is an unfolding event that is evolving and changing constantly, sometimes

on a daily basis.

• At the date of this report and throughout the quarter in general, the Group’s manufacturing facilities have continued to operate.

The Group is cooperating closely with its suppliers and customers to ensure that the supply chain is able to meet the continuing

elevated demand that continued during the fourth quarter, and is taking steps to increase production capacity and maximize

the availability of products and services.

• During the quarter the Group continued to take action to preserve financial stability and flexibility and ensure adequate liquidity

in all geographies. The Company has also continued to invest in developing its brands and to strengthen its partnerships, while

exploring various business opportunities and making advance preparations for the challenges that lie ahead as the year

progresses.

3

Coronavirus Update continued

Impacts of COVID-19 crisis on the Group’s business

• Consumer behavior – Trends include increased in-home consumption of food and beverages and a decline in away-from-home

(AFH) consumption due to social distancing and second/ third lockdowns imposed on consumers in some countries of

operations; continued growth in online shopping; a drop in purchases of impulse products, leading brands grew stronger than

private labels, however during mindful spending continued in the fourth quarter, a trend which could continue. Vaccinations in

some geographies have started and these may impact consumer behavior going forward.

• Geographies – Above average sales growth in Israel continued, due to increased in-home food consumption following the

second and third lockdowns and ongoing social distancing which manifested itself in the continued closure of AFH

entertainment and dining venues. In the US sales continue to come under pressure as category demand declines during the

fourth quarter; in Brazil and China sales increased in local currencies in comparison to Q4 2019

• Product categories – Growth in demand for the Group’s products was evident once again mainly in dairy products, salads, dips,

chocolate tablets, jams, sauces and honey. By contrast, sales of confectionery, single serve snacks and small packs that mainly

serve for AFH consumption as well as portability products (particularly in Israel and the US) remained weak. These could

potentially recover gradually as economies come out of lockdowns and as vaccinations become widespread.

• Sales channels – Group’s sales to the retail chains increased, offset by a drop in sales in the institutional and AFH market, such

as hotels, offices, cafés (including the Elite Coffee To Go chain), restaurants and open-air markets, and impulse (on-the-go

(OTG)) sales.

4


Impacts on the Group’s business units

• Strauss Israel – Increased demand for dairy products, salads and home cooking products, offset by lower demand for

single serve snacks; consumer preference for larger pack sizes. Online grocery shopping continues to support increased

sales to retailers offset by a drop in sales to the institutional and AFH channel. Demand for the Group’s products remains

high, but has slowed in relation to initial pandemic outbreak and first lockdown. Most of the manufacturing sites and the

accompanying supply chain facilities remained open. Supply chain and manufacturing costs continued to rise due to the

costs of personal hygiene, separation of shifts, support of production-line and front-line employees, and contribution to

the community.

• Strauss Coffee – Impact on the coffee business was mixed. Modern trade sales (sales to the large retail chains) rose

moderately as consumers had stocked up on basic coffee brands, coffee beans and capsules for home consumption in

preparation for the lockdowns in most countries of operations. Growth was also observed in online sales. These were

offset by sales to the traditional trade channel, which includes stores, groceries and open-air markets, which suffered due

to restrictions on opening hours and a drop in customer traffic following further lockdowns. Sales to the institutional and

AFH channel dropped significantly as a result of the discontinuation of the activities of hotels, cafés, restaurants, offices

and the points of sale of the Elite Coffee To Go chain in Israel. The coffee business was impacted by rising green coffee

prices particularly in Brazil. The coffee company’s supply and distribution chain was operational throughout the quarter.

5


Impacts on the Group’s business units

• Strauss Water – Israel – fourth quarter sales continued to be robust as well as sales in the UK. IT, and transportation costs

remain high as employees shifted to working from home, as well as costs related to hygiene and personal protective equipment.

• Strauss Water - China - a significant improvement in sales as China continues to emerge from the pandemic, sales grew in

local currency as online sales in China continue to gain momentum during the fourth quarter.

• The International Dips & Spreads business – sales mainly in the US were lower mainly due to demand decline as well as

continued lower sales of portability products and the continued drop in sales to the AFH segment. Supply chain challenges were

partially resolved. Wage costs continued to rise due to incentives and support for production, operations and sales employees.

Obela experienced weak demand for its dip products as well, and high supply chain costs due to the impacts of the lockdown in

Australia.

6

Giora Bardea

Group CEO

Cash cushions+600 m in credit lines;

700 m debt issuance

Strong Homebase Growth

S. Israel: +7.9%; S. Water: +6.4%

Our Frontline Heroes

M&A’sMitsui, Tal Castania

Home consumptionS. Israel: +c8%; H&W +c11/5%

S. Water: +c6.5%

Loyalty to brands

Address Premiumization at home

PLANT BASEDBest year in

service SWTop Customer satisfaction

Develop growth

opportunities

Growth –

Initiate and build

new categories

Emerging categories -

Strong build of competitive

advantage in categories we

operate & emerging ones

Competitive edge –Explore channels for a

better connection to

consumers

Channels –

Supply chain –

Debt optimization;

Financial flexibility

implementing all investments

for : growth-safety-

productivity –innovation People & food safety,

quality, service

Operational Excellence –

Financial –

Governance

Risk management, audit,

control & compliance

Mainstreaming

SDGs & ESG

Addressing Environmental,

Social & Governance issues

Launching SG's 2030

Sustainability Strategyincreasing % of recycled

plastic and developing

milestones for NetZero

Plastic Waste & NetZero

Social Impact

Improving rating scores in

ESG and Joining international

GCF’s coalitions

• Long term & meaningful impact

on our leadership & partners

• lead 2 new multisector

partnership

Ariel Chetrit

Group CFO

Financial Highlights Organic Excluding FX Non GAAP

15

YTD Organic growth : 4.6%

YTD organic gross profit growth: 0.5%

Organic EBIT and EBIT margin growth:

5.4% profit margin up 10 bps

Organic Net income and Net margin growth:

9.2%; profit margin up 30 bps

Q4'20 Organic growth : 4.8%

Q4'20 organic gross profit growth: -0.2%

Organic EBIT and EBIT margin growth:

9% profit margin up 30 bps vs. Q4'19

Organic Net income and Net margin growth:

-4.2%; profit margin down 40 bps vs. Q4'19

The group declared dividend of NIS 270mm

(NIS 2.3 per share) to be paid on April 13th

Q4 2020 YTD 2020

Financial Highlights Reported Non GAAP

YTD 2020 Sales: NIS 8350mm; growth: -2.2%

YTD 2020 Gross margins: 38.7% (down -90 bps vs. YTD 2019)

EBIT and EBIT margins: NIS 924mm (down 1%); 11.1% (up 20

bps vs. YTD 2019)

Net income and net margins: NIS 551mm (up 0.7%); 6.6% (up

20 bps vs. YTD 2019)

EPS: 4.75 (up 0.5% VS. YTD 2019)

16

The group declared dividend of NIS 270mm

(NIS 2.3 per share) to be paid on April 13th

Q4'20 Sales: NIS 2070mm; growth: -2.1%

Q4'20 gross margins: 37.8% (down 120 bps vs. Q4'19)

EBIT and EBIT margins:

NIS 183mm (up 1.1%); 8.8% (up 20 bps vs. Q4'19)

Net income and net margins:

NIS 87mm (up -14.1%); 4.2% (down 60 bps vs. Q4'19)

EPS: 0.74 (down 14.3% VS. Q4'19)

Q4 2020 YTD 2020

Quarter and Full Year Highlights

17

Strauss Israel

• Once again Strauss Israel posts a strong quarterly growth of 7.5% on the back of ongoing

elevated consumption of food at home; growth for 2020 was 7.9%

• Dairy and salads once again led the growth, salty snacks improved

• Market share was at 12% for the quarter slightly lower than the 12.1% recorded last year due

to significant growth in categories Strauss is not active in

• F&I categories, continue to come under pressure as social distancing affects on consumer

behavior continue and impact channel mix; the AFH channel was still largely closed during

Q4 and virtually no impulse sales led to a muted growth of 0.7% led by chocolate slabs

• Overall EBIT grew 11.2% and EBIT margins expanded to 10% during the quarter despite the

negative impact from the F&I categories

• Strauss continues to focus on expanding its alternative dairy offering and approves

investment in new production site

(1) Source: Storenext


18

Strauss Coffee

• Strauss Coffee sales declined across geographies during the quarter except for Brazil due tothe continued closures globally and the subsequent decline in the AFH markets

• Higher green coffee prices continued to erode margins in Q4

• Headline sales impacted mainly by currency devaluation vs. the strong Israeli Shekel, namelythe BRL which is down -c30% and the RUB -20% on average vs last quarter

• Sales in 3C (1) were up during the quarter an impressive 13.4% in local currency during thequarter on the back of higher volume that were offset by the AFH channel

• Sales in Eastern Europe were soft across the board in Q4

• Sales in Israel declined 1.7% in Q4, better than the last quarter (Q3 2020), due to continuedsharp declines in the AFH segment and at ECTG

• 3C (1) market share in Brazil R&G value was 31.2% (2) for 2020, compared to 31.1% in2019including the addition of Mitzui Coffee; excluding the Mitzui acquisition market share rose by0.4% from 28.1% to 28.5%

(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


19

International Dips & Spreads

• The Int’l D&S business declined 9.8% during the quarter in local currency as a result of lower

sales at the AFH channels, convenience stores and of portability products across channels

• Currency headwinds had a negative impact on results as the USD weakened against the NIS

• Challenges in the supply chain remain during the quarter and supply chain costs remain

elevated due to ongoing uncertainties associated with COVID-19

• An increase in costs associated with support of production line employees had a negative

impact on profit margins

• Obela sales were down 3.9% in local currency in Q4

• Hummus category in North America was down 0.9% during the quarter and was up 3.3% YTD

• Hummus market share in North America was slightly down to 61.9% for the year from 62.0%


20

Strauss Water

• Strauss water posted another very strong quarter with sales up 13% and operating income up

5.3%

• The strong performance is attributed to continued strong momentum sales in Israel and the

UK; people spending more time at home requiring better quality drinking water

• Growth in sales was led by the increased sale of new water bars and by increasing the

company’s installed base

• Operating profit was strongly supported by HSW profitability

• Sales at Haier Strauss Water (HSW), the JV in China, were up during the quarter by 11.3% in

local currency and net income was up by 53.9% in local currency as the economic activity in

China returns to growth after the slowdown during the peak of the Corona virus pandemic

earlier this year

• The building of the production site in China is advancing as planned and is expected to be

completed by Q2 2021

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

Q4 2020

2,157 2,1492,114

2,070

1300

1400

1500

1600

1700

1800

1900

2000

2100

2200

2300

Q4'17 Q4'18 Q4'19 Q4'20

Sales

22

2,070

834894

161 1810

100%

40% 43%

8% 9%0%

20%

40%

60%

80%

100%

120%

-

500

1,000

1,500

2,000

2,500

Overall Group StraussCoffee

Strauss Israel Dips &Spreads

Water Other

-2.1% -10.7% 7.5% -13.9% 13.0% na

4.8% 3.8% 7.5% -10.7% 13.1% na

Coffee Spreads

Q4 2020 Consolidated Sales NIS mm Non-GAAP

NIS mm; Non-GAAP; % sales contribution

Q4 2020 Sales by Segment

Negative translation

differences =

NIS 160 million

2.5% 2.7% 4.8%

-2.1%

'20/'19Growth

'20/'19Organic growth excl. FX

Organic Sales

Growth excl. FX=

Q4 Sales Bridge NIS mm; Non-GAAP; Q4’19 to Q4’ 20

23

2,1141,975 2,070

2162

33 20

(160)(20)

Group Sales,Fourth Quarter

2019

TranslationDifferences Effect

M&A Group Sales,Fourth Quarter

2020 Organic w/oFX

Strauss Israel Coffee Strauss Water International Dips& Spreads

Group Sales,Fourth Quarter

2020

Primarily due to the

weakening of the BRL

(NIS -121mm)


Mitzui acquisition

Higher volumes due to

ongoing increased

demand following

COVID 19 outbreak

Strong momentum

continues in Water

sales in both Israel

and UK

Retail sales offset by the

Away from Home and

Foodservices as social

distancing continuesCOVID 19 impacts

continue to

negatively affect

portability product

category and sales

in the AFH channels

10.9%

5.2% 5.5%6.0%

6.9%

Q1 Q2 Q3 Q4 FY

Channel Quarterly Sales Development during Pandemic

Growth rates in the retail channels were elevated but offset by declines in the Away From Home channels

due to lockdowns and social distancing and the closure of restaurants, cafes, hotels, etc.

24

-6.3%

-48.4%

-33.4%

-27.2% -28.6%

Q1 Q2 Q3 Q4 FY

Change in Retail Sales Change in Away From Home Sales

Gross Profit

25

Q4

20

19

G

P &

GM

783

364

264

155

37.8% 40.7% 31.6% 45.3% -

100

200

300

400

500

600

700

800

900

Overall Group Strauss Israel Strauss Coffee Spreads, Water &Other

D = -42mm D = 34mm D = -60mm D = -16mm

NIS 825 NIS 330 NIS 324 NIS 171

39.6% 49.2%39.0% 34.7%

Q4 Consolidated Gross Profit and Gross Margins

NIS mm; Non-GAAP; % Margin

Q4 2020 Gross Profit and Gross Margins

NIS mm; Non-GAAP

774

803

825

783

35.9% 37.4% 39.0% 37.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

600

650

700

750

800

850

Q4'17 Q4'18 Q4'19 Q4'20


differences

NIS -46 million

5.3%6.2% -0.2%

-5.2%

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

(50%) (3C)

Higher volumes and lower FX

impact on material costs offset higher

costs associated with COVID 19

Lower profit margins due

mainly to higher green coffee prices

Higher volumes in Water offset by

lower volumes in Dips & Spreads

and higher costs associated with

COVID 19

Organic Gross Profit

Growth excl. FX=

EBIT

26

149

169

181 183

6.9%7.9%

8.6% 8.8%

0.0%

5.0%

10.0%

15.0%

20.0%

100

110

120

130

140

150

160

170

180

190

Q4'17 Q4'18 Q4'19 Q4'20

Q4 Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

1.1%

8.3%

12.0%

9.0%


differences

NIS -16 million

Organic EBIT

Growth excl. FX=

181 167

183

210 1 13

(16)

(1)(7)

Operating profit,Fourth Quarter

2019

TranslationDifferences

Effect

M&A Operating profit,Fourth Quarter2019 Organic

w/o FX

Strauss Israel Strauss Water Struss Coffee Dips & Spreads Other Operating profit,Fourth Quarter

2020

Q4 EBIT Bridge NIS mm; Non-GAAP; Q4’19 to Q4’20

27


Mitzui acquisition

Higher profits

from HSW

Higher profits and

margins due to

increased retail sales

offset by challenging

AFH sales

Higher green coffee

prices especially in

Brazil and negative

impact of AFH

channels

Lower quarterly sales,

negative sales mix impact

and higher costs

associated with COVID 19

Cost efficiencies due to

COVID 19 and capital gains

on Kitchen Hub companies

183

9071

2 21

-1

8.8% 10.0% 8.6% 1.3% 11.3%

-40

10

60

110

160

210

260

Overall Group Strauss Isarel Strauss Coffee Dips & Spreads Water Other

Q4 2020 EBIT and EBIT MarginsNIS mm; Non-GAAP; % Margin

28

Q4’1

9

EB

IT &

E

BIT

%

D = 2mm D = 10mm D = -15mm D = -7mm D = 1mm D = 13mm

NIS 181 NIS 80 NIS 86 NIS 9 NIS 20 NIS -14

8.6% 9.1%9.7% NA4.8% 12.2%

'20

/'1

9O

rga

nic

g

row

th

ex

cl.

FX

Notes:

(1) 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 11m NIS

on Q4 2019

9.0% 11.2% -2.7% -73.8% 6.0% 96.4%

Volume growth in retail

channels insufficient to

offset declines in AFH

channels; Gross margin

erosion due to higher green

coffee prices and other

COVID 19 associated costs Higher profits from

HSW offset lower

profitability in Israel

Lower quarterly

sales, negative

sales mix impact

and higher costs

associated with

COVID 19

Higher profits and

margins due to

increased retail

sales offset by a

continued

challenging AFH

8.0%

1.6%

7.7%

5.2%5.7%

Q1 Q2 Q3 Q4 FY

Channel Quarterly EBIT Developmentduring Pandemic

29

-36.5%

-84.1%

-64.2%

-45.3%

-58.3%

Q1 Q2 Q3 Q4 FY

Retail EBIT Away From Home EBIT

214233

270 275

9.9%10.8%

12.8%13.3%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

0

50

100

150

200

250

300

Q4'17 Q4'18 Q4'19 Q4'20

EBITDA

30

Q4 2020 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

1.7%

10.5%

20.4%

8.4%

* Note change in EBITDA due to new IFRS16 rules as of 2019

EBITDA Growth

excl. FX=

275

131

99

9 32

413.3% 14.6% 11.9% 5.4% 17.6%0

50

100

150

200

250

300

Overall Group Strauss Israel Strauss Coffee D&S Water Other

EBITDA

31

D = 5mm D = 14mm D = -15mm D = -6mm D = 2mm D = 10mm


na8.2%12.8% 12.3%14.2% 18.5%

Q4 2020 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

Q4’1

9

EB

ITD

A a

nd

E

BIT

DA

M

arg

ins

'20

/'1

9O

rga

nic

g

row

th

ex

cl.

FX

7.80% 10.90% -0.90% -40.50% 7.60% -171.70%

264277

304 295

Q4'17 Q4'18 Q4'19 Q4'20

70 7095

72

Q4'17 Q4'18 Q4'19 Q4'20

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

32

Sa

les

GP

an

d G

ME

BIT

an

d E

BIT

M

arg

ins

(*)

1,013 1,045 1,0371,252

Q4'17 Q4'18 Q4'19 Q4'20

6.9% 6.7% 9.2% 5.7%

26.1% 26.5% 29.3% 23.5%

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

Note: Q4 2020 figures include Mitzui revenues

Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of December 31st , 2020.

(*) EBIT before Other Expenses/ Income.

3.2% -0.8% 20.7%

4.9%

9.8%-3.1%

-2.2%36.7% -25.0%

Q4 Snapshot | BRL mm for 100% ownership and including inter-company sales

-3

19 19

8

-1.0%

6.2% 6.0%

2.8%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

-5

-

5

10

15

20

25

Q4'17 Q4'18 Q4'19 Q4'20

Sabra Q4 Snapshot NIS mm; Non-GAAP; for 100% share

33

294

322 326

280

250 260 270 280 290 300 310 320 330

Q4'17 Q4'18 Q4'19 Q4'20

Sa

les

EB

IT a

nd

EB

IT M

arg

ins

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

-58.1%

-13.8%

Organic excl.

FX -9.8%

Organic excl.

FX -59%

84

87

93

84

78 80 82 84 86 88 90 92 94

Q4'17 Q4'18 Q4'19 Q4'20

-0.9

5.4 5.6

2.3

-1.1%

6.2% 6.0%

2.7%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

-2

-1

-

1

2

3

4

5

6

Q4'17 Q4'18 Q4'19 Q4'20

Sabra Q4 Snapshot $ mm; Non-GAAP; for 100% share

34

Sa

les

EB

IT a

nd

EB

IT M

arg

ins


-9.8%

-59.0%

77

87

101

87

3.6%4.1%

4.8%4.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

-

20

40

60

80

100

120

Q4'17 Q4'18 Q4'19 Q4'20

Net Income

35

0.67 0.760.87

0.74

101 87

173 2

(36)

Net IncomeQ4.2019

Taxes on income Non controllinginterest

EBIT Finance exp. Net IncomeQ4.2020

Q4 Net Profit (attributed to the Company’s shareholders), Net Margins and EPS

NIS mm; Non-GAAP; Q4’19 to Q4’20

Q4 Net Profit (attributed to the Company’s shareholders) Bridge

NIS mm; Non-GAAP

Higher financial expenses

during the quarter due to

higher hedging expenses

and currency gaps as well

as a one time charge of

the early redemption of

bond D

8.1%

4.2%21.2%

-14.1%

-14.3%

Organic Net Income

Growth excl. FX=

Currency headwinds continue during Q4

Currency devaluations in various geographies continue to

negatively impact results:

36

YTD Q4

Revenues -589 -160

% of revenues -7.1% -7.7%

Gross Profit -176 -46

% of GP -5.4% -5.9%

EBIT -58 -16

% of EBIT -6.2% -8.4%

Material cost tailwind on the back of strong NIS partially offset impact on P&L

Net Debt and Net Debt / EBITDA (LTM)Non-GAAP EBITDA, net debt includes partnerships; NIS mm

37

2,188

1,9642,023

1,8782.1x

1.8x 1.6x

1.5x

-

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300

Q4 2017 * Q4 2018 * Q4 2019 Q4 2020

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

GAAP Adjusted Non-GAAP

Q4 2020 Q4 2019 % Chg. Q4 2020 Q4 2019 % Chg.

Sales 1,454 1,423 2.2% 2,070 2,114 (2.1%)

Gross Profit 591 591 0.0% 783 825 (5.2%)

GP Margin 40.7% 41.5% 37.8% 39.0%

Operating Profit 181 183 (1.1%) 183 181 1.1%

EBIT Margin 12.4% 12.8% 8.8% 8.6%

Net Profit (to SH) 83 109 (23.8%) 87 101 (14.1%)

NP Margin 5.7% 7.7% 4.2% 4.8%

Operating Cash Flow 78 241 263 384

Capex (1) (83) (85) (105) (114)

Net debt 1,707 1,894 1,878 2,023

Change in WC (CF) 31 103 216 187

Q4 GAAP and Non-GAAP Financial Highlights, NIS mm

38 (1) Capex includes acquisitions of fixed assets and investment in intangible assets

YTD 2020

GAAP Adjusted Non-GAAP

YTD 2020 YTD 2019 % Chg. YTD 2020 YTD 2019 % Chg.

Sales 5,873 5,695 3.1% 8,350 8,536 (2.2%)

Gross Profit 2,388 2,348 1.7% 3,228 3,379 (4.5%)

GP Margin 40.7% 41.2% 38.7% 39.6%

Operating Profit 887 882 0.6% 924 933 (1.0%)

EBIT Margin 15.1% 15.5% 11.1% 10.9%

Net Profit (to SH) 533 537 (0.8%) 551 547 0.7%

NP Margin 9.1% 9.4% 6.6% 6.4%

Operating Cash Flow 610 672 844 930

Capex (1) (239) (230) (317) (348)

Net debt 1,707 1,894 1,878 2,023

Change in WC (CF) 6 (57) (7) (128)

YTD GAAP and Non-GAAP Financial Highlights, NIS mm

40 (1) Capex includes acquisitions of fixed assets and investment in intangible assets

8,350

3,2793,681

722 6680

100%

39%44%

9% 8%0%

20%

40%

60%

80%

100%

120%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Overall Group StraussCoffee

Strauss Israel Dips &Spreads

Water Other

8,492 8,577 8,5368,350

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

9,000

YTD17 YTD18 YTD19 YTD20

Sales

41

YTD 2020 Consolidated Sales NIS mm Non-GAAP

NIS mm; Non-GAAP; % sales contribution

YTD 2020 Sales by Segment


differences =

NIS 589 mm

4.8% 2.6% 4.6%

-2.2%

'20/'19Growth

'20/'19Organic growth excl. FX

Organic Sales

Growth excl. FX=

-2.2% -12.0% 7.9% -6.3% 6.4% na

4.6% 2.5% 7.9% -3.0% 6.4% na

8,536

7,9818,350

34270

81 40

(589)

(22)

Group SalesYTD.2019

TranslationDifferences Effect

M&A Group Sales 2019Organic w/o FX

Strauss Israel Coffee Strauss Water International Dips& Spreads

Group Sales 2020

YTD Sales Bridge NIS mm; Non-GAAP; YTD 2019 to YTD 2020

42

Primarily negative

BRL translation

(NIS -472mm)


Mitzui acquisition

Higher volumes due to

ongoing increased

demand following

COVID outbreak

Sharp increase in

sales in Israel and UK

Higher volumes sold

in some geographies

offset by AFH

channel weakness

Lower sales due to

negative impact of

portability products

and AFH channels as

well as supply chain

challenges

3,228

1,476

1,108

644

38.7% 40.1% 33.8% 46.3%-30

470

970

1,470

1,970

2,470

2,970

3,470

Overall Group Strauss Israel Strauss Coffee Spreads, Water &Other

3,1163,261

3,3793,228

36.7% 38.0% 39.6% 38.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

1,000

1,500

2,000

2,500

3,000

3,500


Gross Profit

43

YT

D 2

01

9

GP

& G

M

YTD Consolidated Gross Profit and Gross Margins


YTD 2020 Gross Profit and Gross Margins

NIS mm; Non-GAAP


differences NIS 176

2.5%2.7%

-4.5%

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

(50%) (3C)

Organic Gross Profit

Growth excl. FX=

0.5%

D = -151mm D = 122mm D = -238mm D = -35mm

NIS 3379 NIS 1354 NIS 1346 NIS 679

39.6% 36.1%39.7% 48.5%

780

865933 924

9.2%10.1%

10.9% 11.1%

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

1,000


EBIT

44

YTD Consolidated EBIT and EBIT Margins

NIS mm; Non-GAAP

11.3%

9.6%

5.4%


differences NIS 58

Organic EBIT

Growth excl. FX=

-1.0%

933

876924

1

48 1612

(58)

(11)(17)

Operating ProfitYTD.2019

TranslationDifferences

Effect

M&A EBIT 2019 -Organic w/o FX

Strauss Israel Strauss Water InternationalDips & Spreads

Strauss Coffee Other Operating ProfitYTD.2020

YTD EBIT Bridge NIS mm; Non-GAAP; YTD 2019 to YTD 2020

45

Mainly from BRL

Weakening

Mainly due to

increased profits

in HSW and one

time government

grant

Higher profits and margins

due to increased sales,

efficiency and productivity as

well as COVID 19 related

savings offset by some

higher COVID related costs

Lower annual sales,

negative sales mix

impact and higher

costs associated with

COVID 19

Higher green coffee prices

especially in Brazil and

negative impact of AFH

channels

Cost efficiencies due to

COVID 19 and capital gains

on Kitchen Hub companies

924

418354

5691

511.1% 11.3% 10.8%7.7% 13.6%

-

100

200

300

400

500

600

700

800

900

1,000

Overall Group Strauss Isarel Strauss Coffee Dips & Spreads Water Other

YTD 2020 EBIT and EBIT Margins NIS mm; Non-GAAP; % Margin

46

YT

D 2

01

9

EB

IT &

E

BIT

%

'20

/'1

9O

rga

nic

g

row

th

ex

cl.

FX

Notes:

(1) 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 44m NIS

on FY 2020

D = -9mm D = 48mm D = -70mm D = -15mm D = 16mm D = 12mm


9.2% 11.9%10.9% 11.4%10.8% NA

5.4% 12.8% -4.8% -16.0% 21.5% 190.2%

1,0181,102

1,270 1,277

12.0%12.8%

14.9% 15.3%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

200

400

600

800

1000

1200

1400


EBITDA

47

YTD 2020 Consolidated EBITDA and EBITDA Margins

NIS mm; Non-GAAP

0.5%

10.9%

18.0%

6.0%

* Note change in EBITDA due to new IFRS16 rules as of 2019

EBITDA Growth

excl. FX=

EBITDA

48

YTD 2020 EBITDA and EBITDA Margins


YT

D 2

01

9

EB

ITD

A &

E

BIT

DA

%

'20

/'1

9O

rga

nic

g

row

th

ex

cl.

FX

1,277

574466

83 128

15.3% 15.6% 14.2%11.4%

19.2%0

200

400

600

800

1000

1200

1400

Overall Group Strauss Israel Strauss Coffee D&S Water

D = 7mm D = 64mm D = -69mm D = -14mm D = 15mm

NIS 1270 NIS 510 NIS 535 NIS 97 NIS 113

14.9% 14.4%15.0% 17.9%12.6%

5.90% 12.40% -1.80% -12.10% 14.10%

1,002 1,153 1,196 1,143

26.9% 28.9% 30.0% 25.8%


3,7203,995 3,989

4,433


321 364 371296

8.6% 9.1% 9.3% 6.7%


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

49

Sa

les

GP

an

d G

ME

BIT

an

d E

BIT

M

arg

ins

(*)


Note: Q4 2020 figures include Mitzui revenues

Source: Três Corações Alimentos S.A. Consolidated Interim Financial Statements as of December 31st , 2020.

(*) EBIT before Other Expenses/ Income.

7.4%-0.1% 11.1%

15.1%3.7% -4.5%

-20.1%

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

13.4% 3.7%

60

116

157126

4.8%

8.6%

11.5%9.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-

50

100

150

200


1,244

1,352 1,369

1,281

1,150

1,200

1,250

1,300

1,350

1,400


Sabra YTD Snapshot NIS mm; Non-GAAP; for 100% share

50

Sa

les

EB

IT a

nd

EB

IT M

arg

ins


-20.2%

-6.4%

Organic excl.

FX

-3.2%

Organic excl.

FX

-17.5%

16

33

4436

4.7%

8.7%

11.4%9.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-

10

20

30

40

50


346

376384

372

320

330

340

350

360

370

380

390


Sabra YTD Snapshot $ mm; Non-GAAP; for 100% share

51

Sa

les

EB

IT a

nd

EB

IT M

arg

ins


-17.5%

-3.2%

415

489

547 551

4.9%

5.7%6.4% 6.6%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

-

100

200

300

400

500

600


3.704.26

4.73 4.75

Net Income

52

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

NIS mm; Non-GAAP; YTD 2019 to YTD 2020

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

NIS mm; Non-GAAP

12.8%

14.2%

0.5%

Organic Net Income

Growth excl. FX=

547 551

40

(18) (9) (9)

Net IncomeYTD.2019

Taxes on income Finance exp. EBIT Non controllinginterest

Net IncomeYTD.2020

0.7%

9.2%

Currencies

53

RSD PLN EUR GBP RON CNY CAD CHF AUD MXN UAH USD RUB BRL

YTD'20/YTD'19 -1.5 -4.9 -1.7 -3.0 -3.6 -3.5 -4.5 2.2% -4.2 -13. -7.3 -3.5 -12. -25.

Q4'20/Q4'19 2.8% -2.2 2.8% -2.1 0.6% 1.3% -3.3 4.6% 2.4% -10. -18. -4.5 -20. -27.

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

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

RSD PLN RON ILS UAH RUB BRL

YTD'20/YTD'19 2.1% -1.4% 0.0% 3.6% -4.1% -9.8% -22.8%

Q4'20/Q4'19 7.6% 2.5% 5.4% 4.8% -14.2% -16.4% -23.7%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

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

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

Strauss Israel Non-GAAP Financial Highlights

Q4 and YTD 2020 NIS mm

54

Strauss Israel (Non GAAP)

YTD 2020 YTD 2019 % Chg. Q4 2020 Q4 2019 % Chg.

Revenue:H&W 2,537 2,277 11.4% 626 565 10.7%

F&I 1,144 1,134 0.9% 268 267 0.7%

Total Revenue 3,681 3,411 7.9% 894 832 7.5%

Total Gross Profit 1,476 1,354 9.0% 364 330 10.2%

Gross Margins 40.1% 39.7% 0.4% 40.7% 39.6% 1.0%

EBIT:H&W 307 251 22.3% 72 62 14.5%

Margins 12.1% 11.0% 1.1% 11.4% 11.0% 0.3%F&I 111 119 (7.1%) 18 18 (0.1%)

Margins 9.7% 10.5% (0.8%) 6.8% 6.8% (0.1%)Total EBIT 418 370 12.8% 90 80 11.2%

Margins 11.3% 10.8% 0.6% 10.0% 9.7% 0.2%

EBITDA:H&W 403 333 20.9% 99 85 15.6%

Margins 15.9% 14.6% 1.2% 15.7% 15.1% 0.7%F&I 171 177 (3.6%) 32 32 (1.3%)

Margins 15.0% 15.7% (0.7%) 12.0% 12.3% (0.2%)Total EBITDA 574 510 12.4% 131 117 10.9%

Margins 15.6% 15.0% 0.6% 14.6% 14.2% 0.5%

Strauss Israel

55

768

795

832

894

700

720

740

760

780

800

820

840

860

880

900

920

Q4'17 Q4'18 Q4'19 Q4'20

3,131

3,276

3,411

3,681

2,800

2,900

3,000

3,100

3,200

3,300

3,400

3,500

3,600

3,700

3,800


Q4 2020 Strauss Israel Sales

NIS mm; Non-GAAP

YTD 2020 Strauss Israel Sales

NIS mm; Non-GAAP

69

75

80

90

9.0%9.4% 9.7%

10.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

60

65

70

75

80

85

90

95

Q4'17 Q4'18 Q4'19 Q4'20

328343

370

418

10.5% 10.5%10.8%

11.3%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

60

110

160

210

260

310

360

410

460


Strauss Israel

56

Q4 2020 Strauss Israel EBIT & EBIT Margins

NIS mm; Non-GAAP

YTD 2020 Strauss Israel EBIT & EBIT Margins

NIS mm; Non-GAAP

11.2%

Target Milk Price (NIS per liter)

Prices exclude Strauss transportation costs

57

0

100

200

300

400

500

600

700

800

Au

g-2

2

Ma

r-22

Au

g-2

1

22

.01.

202

1

10

.12.

202

0

02

-No

v-2

0

23

-09

-20

13

-08

-20

Jul 0

6, 2

020

Ma

y 2

7, 2

02

0

Ap

r 1

5, 2

02

0

Ma

r 0

4, 2

02

0

Jan

24

, 20

20

De

c 1

2, 2

01

9

No

v 04

, 20

19

Au

g 2

5, 2

019

Au

g 1

5, 2

019

Jul 0

8, 2

019

Ma

y 2

9, 2

01

9

Ap

r 1

5, 2

01

9

Ma

r 0

6, 2

01

9

Jan

25

, 20

19

De

c 1

3, 2

01

8

No

v 05

, 20

18

Sep

26,

20

18

Jul 0

3, 2

018

Ma

y 2

3, 2

01

8

Ap

r 1

2, 2

01

8

Ma

r 0

1, 2

01

8

Jan

22

, 20

18

De

c 0

8, 2

01

7

Oct

31,

201

7

Sep

21,

20

17

Au

g 1

1, 2

017

Jul 0

4, 2

017

Ma

y 2

5, 2

01

7

Ap

r 1

2, 2

01

7

Ma

r 0

3, 2

01

7

Jan

24

, 20

17

De

c 1

2, 2

01

6

No

v 02

, 20

16

Sep

23,

20

16

Au

g 1

5, 2

016

Jul 0

6, 2

016

Ma

y 2

6, 2

01

6

Ap

r 1

5, 2

01

6

Ma

r 0

4, 2

01

6

Jan

26

, 20

16

De

c 1

6, 2

01

5

No

v 06

, 20

15

Sep

29,

20

15

Au

g 1

9, 2

015

10

.07.

201

5

02

.06.

201

5

Ap

r 2

1, 2

01

5

Ma

r 1

0, 2

01

5

Jan

29

, 20

15

London Sugar Historical & Futures Prices2015-2021 ($\T)

2016 Avg.

500

2019 Avg.

333

2017 Avg.

433

2015 Avg.

374

58

2018 Avg.

347

2020 Avg.

376

Futu

res

2021 Avg.

440

0

500

1000

1500

2000

2500

Dec-

22

Jul-2

2

Dec-

21

Jul-2

1

05.0

2.20

21

30.1

2.20

20

20-N

ov-2

0

15-1

0-20

09-0

9-20

03-0

8-20

Jun

24, 2

020

May

18,

2020

Apr 0

7, 2

020

Mar

02,

202

0

Jan

24, 2

020

Dec 1

6, 2

019

Nov 0

8, 20

19

Oct 0

3, 2

019

Aug 2

8, 2

019

Jul 2

2, 2

019

Jun

14, 2

019

May

08,

2019

Mar

28,

201

9

Feb

20, 2

019

Jan

15, 2

019

Dec 0

3, 2

018

Oct 2

6, 2

018

Sep

20, 2

018

Aug 1

4, 2

018

Jun

21, 2

018

May

15,

2018

Apr 0

6, 2

018

Feb

27, 2

018

Jan

22, 2

018

Dec 1

2, 2

017

Nov 0

3, 20

17

Sep

28, 2

017

Aug 2

2, 2

017

Jul 1

7, 2

017

Jun

09, 2

017

May

04,

2017

Mar

24,

201

7

Feb

16, 2

017

Jan

11, 2

017

Dec 0

1, 2

016

Oct 2

6, 2

016

Sep

20, 2

016

Aug 1

2, 2

016

Jul 0

7, 2

016

Jun

01, 2

016

Apr 2

2, 2

016

Mar

15,

201

6

Feb

08, 2

016

Jan

04, 2

016

Nov 2

6, 20

15

Oct 2

1, 2

015

Sep

15, 2

015

Aug 0

7, 2

015

02.0

7.20

15

27.0

5.20

15

Apr 1

7, 2

015

Mar

10,

201

5

Feb

02, 2

015

London Cocoa Historical & Futures Prices2015-2021 (GBP\T)

59

Futu

res

2017 Avg.

1,771

2019Avg.

1,798

2015 Avg.

2,101

2016 Avg.

2,188

2018 Avg.

1,680

2020 Avg.

1,794

2021 Avg.

1,686

Strauss Coffee (Non GAAP)

YTD 2020 YTD 2019 % Chg. Q4 2020 Q4 2019 % Chg.

Revenue:Israel 712 754 (5.6%) 169 171 (1.7%)

International 2,567 2,972 (13.6%) 665 762 (12.8%)

Total Revenue 3,279 3,726 (12.0%) 834 933 (10.7%)

Total Gross Profit 1,108 1,346 (17.7%) 264 324 (18.7%)

Gross Margins 33.8% 36.1% (2.4%) 31.6% 34.7% (3.1%)

EBIT:Israel 158 143 10.7% 32 15 118.4%

Margins 22.3% 19.0% 3.3% 19.4% 8.8% 10.8%International 196 281 (30.2%) 39 71 (45.1%)

Margins 7.6% 9.4% (1.7%) 5.8% 9.2% (3.4%)Total EBIT 354 424 (16.4%) 71 86 (16.5%)

Margins 10.8% 11.4% (0.5%) 8.6% 9.1% (0.5%)

EBITDA:Israel 197 179 9.9% 43 25 73.4%

Margins 27.6% 23.7% 3.9% 25.3% 14.3% 10.9%International 269 356 (24.4%) 56 89 (37.0%)

Margins 10.5% 12.0% (1.5%) 8.5% 11.8% (3.3%)Total EBITDA 466 535 (13.0%) 99 114 (13.3%)

Margins 14.2% 14.4% (0.2%) 11.9% 12.3% (0.4%)

Strauss Coffee Non-GAAP Financial Highlights


60Note: (1) 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, 2020.

Strauss Coffee Non-GAAP Sales by Geography


61

Strauss Coffee Sales

YTD 2020 YTD 2019 NISLocal

CurrencyQ4 2020 Q4 2019 NIS

Local

Currency

Israel 712 754 (5.6%) (5.6%) 169 171 (1.7%) (1.7%)

International:

Três Corações Joint Venture

(Brazil) (1) 1,469 1,793 (18.1%) 11.2% 385 437 (12.0%) 20.8%

CIS 536 579 (7.4%) 5.1% 128 165 (22.1%) (3.1%)

Poland 276 279 (1.2%) 3.7% 69 72 (5.7%) (3.6%)

Romania 165 183 (9.5%) (6.5%) 45 48 (4.7%) (5.2%)

Serbia 121 138 (12.1%) (11.4%) 38 40 (5.3%) (7.8%)

Total International 2,567 2,972 (13.6%) 6.5% 665 762 (12.8%) 8.8%

Total Coffee 3,279 3,726 (12.0%) 3.6% 834 933 (10.7%) 6.5%

% Change % Change

Note: (1) 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, 2020.

Strauss Coffee

62

4,1003,951

3,726

3,279

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500


1,0851,019

933

834

200

300

400

500

600

700

800

900

1,000

1,100

1,200

Q4'17 Q4'18 Q4'19 Q4'20

Q4 2020 Strauss Coffee Sales

NIS mm; Non-GAAP

YTD 2020 Strauss Coffee Sales

NIS mm; Non-GAAP


-10.7%

-12.0%

Organic

Excl. FX

3.8%

Organic

Excl. FX

2.5%

79 8186

71

7.2%7.9%

9.1% 8.6%

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

Q4'17 Q4'18 Q4'19 Q4'20

393418 424

354

9.6%10.6%

11.4%10.8%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

100

150

200

250

300

350

400

450


Strauss Coffee

63

Q4 2020 Strauss Coffee EBIT & EBIT Margins

NIS mm; Non-GAAP

YTD 2020 Strauss Coffee EBIT & EBIT Margins

NIS mm; Non-GAAP


-16.5%

-16.4%Organic

Excl. FX

-2.7%

Organic

Excl. FX

-4.8%

Robusta Historical & Futures Prices2015-2021 ($\T)

64

0

500

1000

1500

2000

2500

Sep-

22

May

-22

Nov

-21

Jul-2

1

08-F

eb-2

1

31-D

ec-2

0

23-N

ov-2

0

15-1

0-20

09-0

9-20

03-0

8-20

Jun

26, 2

020

May

20,

202

0

Apr

09,

202

0

Mar

04,

202

0

Jan

28, 2

020

Dec

16,

201

9

Nov

08,

201

9

03.1

0.20

19

27.0

8.20

19

19.0

7.20

19

Jun

13, 2

019

May

07,

201

9

Mar

27,

201

9

Feb

19, 2

019

Jan

14, 2

019

Dec

04,

201

8

Oct

29,

201

8

Sep

21, 2

018

Aug

15,

201

8

Jul 1

0, 2

018

Jun

04, 2

018

Apr

25,

201

8

Mar

16,

201

8

Feb

08, 2

018

Jan

02, 2

018

Nov

21,

201

7

Oct

16,

201

7

Sep

08, 2

017

Aug

02,

201

7

Jun

27, 2

017

May

22,

201

7

Apr

11,

201

7

Mar

06,

201

7

Jan

27, 2

017

Dec

20,

201

6

Nov

14,

201

6

Oct

07,

201

6

Sep

01, 2

016

Jul 2

6, 2

016

Jun

20, 2

016

May

12,

201

6

Apr

05,

201

6

Feb

24, 2

016

Jan

19, 2

016

Dec

14,

201

5

Nov

06,

201

5

Oct

01,

201

5

Aug

25,

201

5

Jul 2

0, 2

015

12.0

6.20

15

06.0

5.20

15

Mar

26,

201

5

Feb

18, 2

015

Jan

13, 2

015

2017 Avg.

2,038

2019 Avg.

1, 392

2015 Avg.

1,715

2016 Avg.

1,742

2018 Avg.

1,691

2020 Avg.

1, 289

Futu

res

2021 Avg.

1, 360

Arabica Historical & Futures Prices2015-2021 (Cent\Lb)

65

0

20

40

60

80

100

120

140

160

180

200

Dec-

22

Jul-2

2

Mar

-22

Jul-2

1

Mar

-21

08-Ja

n-21

01-D

ec-2

0

23-1

0-20

17-0

9-20

11-0

8-20

May

27,

202

0

Apr 2

1, 2

020

Mar

13,

202

0

Feb

05, 2

020

Dec 2

7, 2

019

Nov

19,

201

9

14.1

0.20

19

06.0

9.20

19

31.0

7.20

19

Jun

24, 2

019

May

16,

201

9

Apr 0

9, 2

019

Mar

04,

201

9

Jan

24, 2

019

Dec 1

4, 2

018

Nov

07,

201

8

Oct

02,

201

8

Aug

24, 2

018

Jul 1

9, 2

018

Jun

11, 2

018

Mar

28,

201

8

Feb

20, 2

018

Jan

11, 2

018

Dec 0

4, 2

017

Oct

26,

201

7

Sep

20, 2

017

Aug

14, 2

017

Jul 0

7, 2

017

May

31,

201

7

Apr 2

4, 2

017

Mar

16,

201

7

Feb

07, 2

017

Dec 2

9, 2

016

Nov

21,

201

6

Oct

14,

201

6

Sep

08, 2

016

Aug

02, 2

016

Jun

24, 2

016

May

18,

201

6

Apr 1

2, 2

016

Mar

04,

201

6

Jan

27, 2

016

Dec 1

6, 2

015

Nov

09,

201

5

Oct

02,

201

5

Aug

26, 2

015

Jul 2

1, 2

015

12.0

6.20

15

06.0

5.20

15

Mar

30,

201

5

Feb

20, 2

015

Jan

13, 2

015

Futu

res2017 Avg.

133

2019 Avg.

101

2015 Avg.

134

2016 Avg.

136

2018 Avg.

112

2020 Avg.

112

2021 Avg.

125

Dips & Spreads (Non GAAP)

YTD 2020 YTD 2019 % Chg. Q4 2020 Q4 2019 % Chg.

Revenue:Sabra (50%) 642 684 (6.5%) 140 163 (13.8%)

Obela (50%) 82 86 (5.3%) 21 25 (14.9%)

Total Revenue 722 771 (6.3%) 161 188 (13.9%)

EBIT:Sabra (50%) 63 79 (20.0%) 4 10 (58.0%)

Margins 9.8% 11.5% (1.7%) 2.9% 6.0% (3.1%)

Obela (50%) (7) (8) NM (2) (1) NM

Margins NM NM NM NM NM NM

Total EBIT 56 71 (21.3%) 2 9 (76.6%)

Margins 7.7% 9.2% (1.4%) 1.3% 4.8% (3.6%)

EBITDA:Total EBITDA 83 97 (15.1%) 9 15 (43.2%)

Margins 11.4% 12.6% (1.4%) 5.4% 8.2% (2.8%)

International Dips & SpreadsStrauss D&S Non-GAAP Financial Highlights | YTD and Q4 2020 NIS mm; 50% share

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

2019 Avg.

1,622

2015 Avg.

1,324

2016 Avg.

1,109

2017 Avg.

1,193

Humera Sesame Prices2015-2021 (USD/Metric Ton)

67

2018 Avg.

1,528

2020 Avg.

1,379

0

500

1000

1500

2000

2500

2021 Avg.

1,481

541591

628668

-

100

200

300

400

500

600

700

800


136149

161

181

-

20

40

60

80

100

120

140

160

180

200

Q4'17 Q4'18 Q4'19 Q4'20

Strauss Water

68

YTD 2020 Strauss Water Non-GAAP Sales

NIS mm; Non-GAAP

Q4 2020 Strauss Water Non-GAAP Sales

NIS mm; Non-GAAP

6.4%13.0%

36

65

75

91

0

10

20

30

40

50

60

70

80

90

100


9

20 2021

0

5

10

15

20

25

Q4'17 Q4'18 Q4'19 Q4'20

Strauss Water

69

YTD 2020 Strauss Water Non-GAAP EBIT

NIS mm; Non-GAAP

Q4 2020 Strauss Water Non-GAAP EBIT

NIS mm; Non-GAAP

21.4%5.3%

Note: 1. Water EBIT includes net profits from HSW

2. 2020 Includes one time government grant for HSW in Q2

32m

HSW

51m

HSW

9m

HSW

14m

HSW

3442 40

61

010203040506070

Q4'17 Q4'18 Q4'19 Q4'20

243288

341380

- 50

100 150 200 250 300 350 400

Q4'17 Q4'18 Q4'19 Q4'20

Haier Strauss Water Q4 Snapshot¥mm; Non-GAAP; for 100% share

70 Note: Haier Strauss Water (HSW) is a company jointly held by Haier (51%) and Strauss Group (49%) .

Sa

les

Ne

t In

co

me

53.9%

11.3%

104 109139

215

0

50

100

150

200

250


948 1,0351,164 1,158

-

200

400

600

800

1,000

1,200

1,400


Haier Strauss Water YTD Snapshot¥mm; Non-GAAP; for 100% share

71 Note: Haier Strauss Water (HSW) is a company jointly held by Haier (51%) and Strauss Group (49%) .

Sa

les

Ne

t In

co

me

54.5%

-0.5%

Source: 2021 Mintel Group Limited.

CSD = Carbonated Soft Drinks

Source: Storenext,

As a percentage of all types of beverages

CSD = Carbonated Soft Drinks

40.0%

45.0%

50.0%

55.0%

60.0%

Brita buys Filltech, a CO2 company in German, expanding to Soda

Brita expands with Goodman in Beselich, Germany

Cott acquired Watercooler Gigant, e-commerce platform strengthening business in Netherlands

Cott acquired Clearwater, expanding to Hungary

SodaStream announced plans to launch in China in 2021

Waterlogic acquired Tipperary Water from Irish C&C

Primo Water Corporation (formerly Cott) acquired Mountain Valley Water Company of WNY

Cott acquired Primo Water Corporation

Pentair acquired ROcean, a provider of smart and sustainable counter-top water filtration solutions

Waterlogic acquired Colombian water dispenser firm Hidrospot

Culligan acquired AquaVenture &C announced that it will retain the Quench operating segment, which is a leading provider of bottle-free, filtered drinking water systems and services

* source: Markets & Markets

Coca-Cola European Partners invested in Lavit, a countertop dispensing machines company to promote dispensed solutions, in the interest of eliminating packaging waste and reducing its carbon footprint

CGAR

CGAR

CGAR

SW SW including our share in HSW

6.1%

2.3%

6.0%

0.0%

2.0%

4.0%

6.0%

8.0%

CHINA GDP GROWTH RATE

FY 2019 FY 2020 FY 2021(F)

4.6%

33.8%

0.0%

10.0%

20.0%

30.0%

40.0%

DEC 20 JAN-FEB 21

CHINA RETAIL SALES Dec2020-Feb2021

Source: CNA Channel News Asia

On-yearOn-year

Source: Beijing ZhongYiKang / 北京中怡康

15.0

16.817.8

19.3

21.6

24.2

12.2%

5.8%

8.6%

11.6%12.0%

0.0

10.0

20.0

30.0

0%

5%

10%

15%

20%

Y2016 Y2017 Y2018 Y2019 Y2020 2021F

China Filtered Water Market Units Y2016-2021F

Market Units / Million Growth / %

33.0

39.3

44.142.7

38.3

42.919.1%

12.2%

-3.2%

-10.3%

12.0%

0.0

10.0

20.0

30.0

40.0

50.0

-18%

-9%

0%

9%

18%

26%

Y2016 Y2017 Y2018 Y2019 Y2020 2021F

China Filtered Water Market Value Y2016-2021F

Market Revenue / ¥ Billion Growth / %

2021F: Online 67% / Offline 33%2021F: Online 31% / Offline 69%

0%

25%

50%

75%

100%

SouthKorea

Japan USA Europe China

Y2019 Filtered Water Penetration Rates

Penetration Rate / % (POE+POU)

0.0

12.5

25.0

37.5

50.0

ONLINE OFFLINE TOTAL

Ma

rke

t S

ize

/ ¥

Billi

on

2021F Point-of-use (POU) & Point-of-Entry (POE) Market Size & Growth Forecast

POU POE

Growth

18.2%

Growth

8.1%

Growth

11.3%

Growth

14.2%

Growth

13.5%

Growth

17.5%

On-Year:12%

Source: Beijing ZhongYiKang / 北京中怡康Source: askci.com / 中商产业研究院

Online: 31%

POE+ % > POU+ %

http://askci.com/

0.0%

6.3%

12.5%

18.8%

25.0%

AO Smith Midea Trulever HSW Angel Xiaomi 3M Whirlpool EcoWater BiQingYun Philips JiuYang

Mark

et

Share

/ %

Competitive Lanscape of Filtered Water Industry 2019-2020

2019 2020

5

4

Source: Beijing ZhongYiKang / 北京中怡康

1 HSW: Online #1 in Y2020

Thank You

For further details please contact:

Daniella Finn | Investor Relations

Phone: + 972-3-675-2545

[email protected]

www.strauss-group.com

strauss group financial results

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