The Strauss Group Company Presentation

April 2015

Strauss Group - Overview

• A food and beverage company active in More than 20 countries

with a strong home base – Israel’s second-largest food group

• The world’s fourth largest coffee company in the world

• The US market leader in dips and spreads

• Israel’s leading water company

• Strategic partnerships with companies such

as Danone, PepsiCo, Haier, Sãu Miguel

• Employs 14,000 people in Israel and worldwide

• Our turnover in 2014: NIS 8.1 billion

(approx. $2.28 billion)

• AA+ credit rating

• Among the top ten companies in the Ma’ala Index

for Corporate Responsibility

Strauss Group – Organizational Structure

Strauss Group

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

Strauss Water

25.1%

Mexico

Australia

50%

Israel

50%

28%

USA

Australia

Singapore

Israel Yotvata

50%

Obela

USA

Canada

Sabra

Israel UK

China

50%

Poland

Brazil Dairy

50%

Confectionery

Salty Snacks

Salads

Yad Mordechai

20%

49%

Business Partners Network

Romania

Serbia

Russia

Ukraine

12%

Japan

Russia

Last update: 31.3.2015

Strauss Family 64.68%

Public 35.32%

צבע לגרפים

קפה

Growth story

3,273 3,312 3,355 3,701

3,939 4,039 4,144 4,128

2,688

2,933 3,018

3,154

3,760

4,143 3,999 4012

2007 2008 2009 2010 2011 2012 2013 2014

Inte

rna

tio

na

l Is

rae

l

5,961 6,246 6,373

6,855

7,699

+4.8% +2% +7.5%

+12.3%

8,182 +6.3%

CAGR: 4.6% 8,143

-0.5% -0.0% 8,140

Net Consolidated Sales (Million NIS)

צבע לגרפים

שטראוס

קבוצה כללי

Strauss global presence

North America

Brazil

Australia

Singapore

China

Japan

Israel

Serbia

Switzerland

The Netherlands

Poland

CIS

England

Mexico

Romania

Germany

Ukraine

Canada

Costa Rica

Cyprus

Portugal

Finland

Norway

A SPECIAL WAY

A company with

Improve the quality of life of our consumers

Continue to grow with our strategic partners

Develop new horizons

Succeed through new concepts and categories

Bring together our multi-cultural team

A journey leading us toward the achievement of our objectives :

Our Mission:

Creating Wonders

out of The mission defines what we are here for, what is the heart and soul of the organization, our purpose - not merely our objectives, but rather what gives meaning to our existence as a company and to our daily work.

Basics

צבע לגרפים

שטראוס

קבוצה כללי

A Special Way

Does Special

Business

Strauss Israel

Strauss in Israel Our Home Base

~5,700 employees

11 plants

27 brands

Strauss in Israel

• Meeting various needs

• Diverse touch points

• Diverse sales channels

Strauss Israel

• Among the top TEN “Best Companies to Work for” in 2014

• One of the top ten “most social employers" of 2014

• Platinum rating in the “Maala” CSR Index for the eight consecutive year

• The biggest advertiser in Israel

צבע לגרפים

שטראוס

קבוצה כללי

Strauss Israel market share 2014 #1

70% of Strauss products hold No.1 market positions

78%

49% 45%

90%

63%

45%

29%

R&G Coffee ChocolateWorld

Freshly cutvegetables

Creamdesserts

Flavored milkdrinks

Yogurt Wafers

#1 #1 #1 #1 #1 #1 #1 #1

*

* Value MS

צבע לגרפים

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Strauss Israel market share 2014 #2

31%

35%

24%

34%

18%

40%

Chewing gum Salty snacks Cheese Chilled salads Cakes Instant coffee

#2 #2 #2 #2 #2 #2

*

* Value MS

Strauss Coffee

We took our know-how in coffee

and our consumer insights

We added our entrepreneurial

spirit and our desire to connect

with people all over the world

We added our ability to locate

new markets

צבע לגרפים

קפה

Going International

1991 1994 1998 1998 2000 2001 2005 2005 2005 2008 2009 2010 2011 2011

2012 2012 2013 2014 2014

Strauss Brazil 2014

• Number 1 coffee player in Brazil

• Average Market Share for the year 2014 in the R&G category:

22.6% (Total Brazil according to A.C. Nielsen)

• Sales in Tons for 2014 Total 267,225, R&G 141,608, Green Coffee

Beans Exports 47,940 Corn Grain products 46,677, Coffee Drinks

and Other Products 31,000

• Number of Employees: 5,279

CIS – Russia, Ukraine 2014

• Active in the instant freeze dried and roast & ground sectors

• Average 2014 value market share: roast & ground &beans 9.8%, instant freeze dried 9.4%

• Tons sold 2014: 12,268

• Number of employees: 538 in Russia

Russia • Active in the instant and roast

& ground sectors

• Tons sold 2014: 7,055

• Number of employees: 136

Ukraine

Romania 2014

• Active in the roast & ground and Instant Sectors

• Average 2014 value market share:

roast & ground 24.8%, Instant 39.9%

• Tons sold 2014: 9,512

• Number of employees: 245

Israel 2014

• Active in the roast & ground, instant and chocolate

powdered drinks sectors

• Average 2014 value market share: roast & ground 78.9%,

instant 39.9%, chocolate powdered drinks 81.1%

• Tons sold 2014: 12,041

• Number of Employees: 672 including 435 in the Café Elite

point of sales channel and 237 in the factories

Poland 2014

• Active in the roast & ground sector

• Average 2014 value market share:

roast & ground 18.9%

• Tons sold 2014: 14,395

• Number of employees: 352

Serbia 2014

• Active in the roast & ground sector

• Average 2014 value market share:

roast & ground 33.2%

• Tons sold 2014: 7,919

• Number of employees: 254

צבע לגרפים

קפה

Global Strauss Coffee sales Sales (NIS Millions)

1,090 1,349

1,624

2,344

2,897

3,243 3,349 3,386

3,926

4,206 3,944

3,825

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

PepsiCo-Strauss Fresh Dips & Spreads

צבע לגרפים

שטראוס

קבוצה כללי

Milestones in development

2005

Acquisition of Sabra

2007

Partnership with PepsiCo

2009

Building a new plant in Virginia

2012

Launching in Mexico and

Australia

צבע לגרפים

שטראוס

קבוצה כללי

Sabra’s sales growth annual sales

314

261

217

159

110

81

55 34 22

201320122011201020092008200720062005

54.5% 61.8%

47.3%

35.8%

22.2%

44.5% JV with

Frito Lay

36.5%

20.3%

20.3% 360

14.6%

2014

צבע לגרפים

שטראוס

קבוצה כללי

10%

20%

3%

14% 22%

31%

Market Shares 2005-2014 Dollar Share Refrigerated Flavored Spreads

2005 2014

Sabra is the only branded hummus gaining market share

Source: IRI Reviews 12/2014

*these figures are rounded upward

63% 13%

10%

4% 7%

4% Sabra

Others

privat label

cedars

tribe

Kraft

צבע לגרפים

שטראוס

קבוצה כללי

From hummus, to salsa, to....

Salsa - California Guacamole - Mexico

Fresher Products

Max Brenner

Max Brenner Brings people together, it makes fun a special pleasure

By applying a unique engaging concept

58 Chocolate Bars

40 in Australia

6 in Israel

5 in the US

2 in Singapore

3 Japan

2 Russia

Strauss Water

Strauss Group identified in the drinking water category a strategic opportunity that is compatible with the Group Vision

Water - a natural environment for Strauss Group

• Improve consumers’ quality of life

• Social responsibility

• Ecological awareness

Strauss’s Water Vision:

Establish a leading global company that supplies water solutions, brining consumers back to using tap water

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Strauss Water - Milestones

2007

Filter

- 2009

10 approvals

Acquiring Tana Industries (Tami 4)

Primo Family

2010

Laying the groundwork for global expansion

Water Maker

Signing an Agreement with HAIER

2011

Signing a Partnership agreement with Virgin

Strauss Water

Vision & Strategy:

Breakthrough technology for safe and healthy water

Tana Water

World leader in POU appliances

Skills & capabilities

Proven residential business model

Global Markets Growth opportunity

Fragmented competition

No global leader

Leading global water brand

צבע לגרפים

שטראוס

קבוצה כללי

2010 Strauss’s launching in China

2010 Strauss’s launching in China

צבע לגרפים

שטראוס

קבוצה כללי

Our product in China

צבע לגרפים

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קבוצה כללי

Sales and Promotional stand

צבע לגרפים

שטראוס

קבוצה כללי

2012 Strauss Water launching in the UK

צבע לגרפים

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קבוצה כללי

Thanks!