Investor Presentation Regarding

StraussCoffeeMay 2nd, 2013

Todd Morgan, CEO Strauss Coffee

Disclaimer

2

מצגת זו ". הצעה לציבור"ובפרט אינה מהווה ")החברה("מ "בע גרופהמצגת אינה מהווה הצעה להשקעה או לרכישת ניירות ערך של שטראוס . אינה מתיימרת להקיף או להכיל את כל המידע העשוי להיות רלבנטי לצורך קבלת החלטה כלשהי בנוגע להשקעה בניירות ערך של החברה

לשם תמצית ונוחות ואינה ממצה את מלוא הנתונים אודות החברה ופעילותה ואינה מחליפה את הצורך לעיין , מצגת זו נערכה בעיקרהואין , המידע הכלול במצגת זו אינו שלם וכל האמור בה כפוף לאמור בדיווחים הרלבנטיים של החברה. בדיווחים שפרסמה החברה לציבור

מצגת זו עשויה לכלול מידע צופה פני עתיד . לרבות לא לשלמות או דיוק המידע האמור בה, לראות במצגת זו משום מצג או התחייבותהרי שהן בלתי , אשר על אף שהחברה סבורה שהנן סבירות, המבוסס על הערכות והנחות עדכניות של הנהלת החברה נכון למועד המצגת

וכן , מגורמי סיכון המאפיינים את פעילות החברה, בין היתר, התממשותו או אי התממשותו של המידע צופה פני עתיד תושפע. ודאיות מטבעןמההתפתחויות בסביבה הכלכלית ובגורמים חיצוניים המשפיעים על פעילות החברה ושלא ניתן להעריכם מראש והם אינם מצויים בשליטת

.החברה אינה מתחייבת לעדכן או לשנות תחזית או הערכה כאמור ואינה מתחייבת לעדכן מצגת זו. החברה

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

3.3 3.6

0.9

1.1

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2007 2012

Instant R&G

31.2

47.5

19.1

28.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2007 2012

Instant R&G

Global coffee market size(value and volume)

Source: Euromonitor 2012. Excluding cafes. 3

Volume (MT, mm)

4.1

4.7

Global coffee market is large and growing

Retail Selling Price (RSP) (USD $, Bn)

50.4

75.8

6.2%

7.2%

7.5%

7.6%

7.8%

8.2%

9.2%

12.5%

21.1%

26.9%

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

Poland

Colombia

Saudi Arabia

Serbia

Romania

Algeria

Indonesia

Brazil

Russia

Venezuela

Source: Euromonitor 2012. 4

Top ten emerging R&G markets:’07-’12 value CAGR and market size ($ mm)

848

684

303

308

261

570

351

5,442

888

326

0 1,000 2,000 3,000 4,000 5,000 6,000

Poland

Colombia

Saudi Arabia

Serbia

Romania

Algeria

Indonesia

Brazil

Russia

Venezuela SCBV presence

Brazil is by far the largest R&G emerging market

R&G consumption in emerging markets showed healthy growth

Source: Euromonitor 2012. 5

7.5%

8.6%

9.4%

10.0%

10.1%

10.7%

12.0%

13.2%

13.7%

16.5%

0.0% 5.0% 10.0% 15.0% 20.0%

Poland

Brazil

South Korea

Malaysia

Mexico

Philippines

Thailand

Russia

China

Ukraine

708

935

1,329

400

920

716

970

2,840

1,093

965

0 500 1,000 1,500 2,000 2,500 3,000

Poland

Brazil

South Korea

Malaysia

Mexico

Philippines

Thailand

Russia

China

Ukraine

Russia is by far the largest

instant emerging market

Strong growth in instant as well

Top ten emerging instant markets:’07-’12 value CAGR and market size ($ mm)

SCBV presence

6

Three key drivers of future demand in emerging markets

Premiumization

Emerging caféculture in key

Countries

Rising incomes& middle class

Growth

Significant volume growth in emerging markets

Evolution of global coffee consumption(000 bags)

7

(10,000)

10,000

30,000

50,000

70,000

90,000

110,000

130,000

150,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: International Coffee Organization (ICO) and Strauss Group estimates.

Resilient market - Volume decline risk is relatively limited

28.8%

7.4%

6.3%

8.1%

8.5%

17.4%

3.9%

1.1%

5.1%

4.7%

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

SinglePortionR&G

FreshCoffeeBeans

R&G

Instant

Total

Volume '07-'12 CAGR Value '07-'12 CAGR

Coffee segments developmentHistorical value and volume ’07-’12 CAGRs by coffee category

Source: Euromonitor 2012. 8

Value:$8.0 Bn

Value: $34.1 Bn

Value: $28.3Bn

Value:$5.4 Bn

Value: $75.8 Bn

Total R&G value: $47.5 Bn

Good historic growth in all segments

Coffee segments projectionsProjected value and volume ’12-’17E CAGRs by coffee category

Source: Euromonitor 2012. 9

Total R&G projected volume

CAGR: 1.7%;Total R&G

projected value CAGR: 4.2%,

10.8%

4.1%

2.3%

3.9%

4.1%

8.0%

3.2%

1.2%

3.9%

2.3%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

SinglePortionR&G

FreshCoffeeBeans

R&G

Instant

Total

Volume '12-'17 CAGR Value '12-'17 CAGR

Solid growth projected to continue across segments

Source: Deutsche Bank research report dated September 3rd, 2012; and Morgan Stanley research report dated August 21st, 2012. 10

Global Coffee Peers:Estimated coffee EBIT margins

Potential for high profitability

0%

5%

10%

15%

20%

25%

30%

35%

40%

Nespresso NestleCoffee

Peet's Kraft's Coffeebiz

GreenMountain

Lavazza DEMB Tchibo

EBIT margin median: 15%

$1,969

$1,540

$1,294 $1,374

$1,810$1,970 $2,185

$2,596

$2,074

$2,374

$1,810

$2,056$2,241

$2,099

$2,040$1,908

$2,163

$2,053

$2,556

$2,535

$2,428

$3,073$3,246

$3,526

$4,569

$5,302

$5,172

$6,049

$6,611

$5,444

$6,388

$5,092

$5,591

$4,801

$5,063

$4,465

$3,933

$3,437

$4,077

$3,568

$3,986

$3,560

$3,254

$3,168

$3,340

$3,012

$3,009

116 ct/lb

110 ct/lb

139 ct/lb147 ct/lb

166 ct/lb

207 ct/lb

241 ct/lb

235 ct/lb

274 ct/lb

300 ct/lb

247 ct/lb

290 ct/lb

231 ct/lb

254 ct/lb

218 ct/lb

230 ct/lb

204 ct/lb

178 ct/lb

156 ct/lb

185 ct/lb

162 ct/lb

181 ct/lb

161 ct/lb

148 ct/lb

144 ct/lb

152 ct/lb

137 ct/lb

136 ct/lb

01/09 03/09 05/09 07/09 09/09 11/09 01/10 03/10 05/10 07/10 09/10 11/10 01/11 03/11 05/11 07/11 09/11 11/11 01/12 03/12 05/12 07/12 09/12 11/12 01/13 03/13

Based on 2 months forward deals

Arabica and Robusta prices($/Ton; for Arabica also ct./lb.)

11

Robusta3/28/13: $2,053

Arabica3/28/13:$3,009

Arabica down from extreme highs; Robusta more flat

Robusta1/15/09: $1,969

Arabica1/15/09:$2,556

DEMB – Underlying EBIT margins evolution (1)

12

16.0%

13.6%

11.7%

13.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

FY 2010 FY 2011 FY 2012 YTD FY 2013

D.E Master Blenders

Source: Company's public fillings and GS research report dated Sep 3, 2012.(1) Note: DEMB FY ends in June/July; YTD 2013 represents 6 months ending December 31st, 2012.  

Margin recovery

22.6%

12.3%

5.7%

3.3% 2.6% 2.4% 2.1% 1.9% 1.6% 1.4%

The Global Coffee Competitive Landscape2012 RSP sales ($Bn) and value market share

13Source: Euromonitor 2012 – company shares by brand owner. Based on RSP excluding cafes/ coffee shops. 

Global coffee market = $75.8Bn; Strauss is the 4th largest global coffee player

17.1 Bn 9.3 Bn 4.3 Bn 2.5 Bn 1.9 Bn 1.8 Bn 1.6 Bn 1.4 Bn 1.2 Bn 1.1 Bn

Strauss global RSP sales and market share includes 100% of Tres Coracoes (3C), a 50%‐50% partnership between 

Strauss Group and Sao Miguel

10.1%

7.8%

6.5%

4.1%

3.8%

67.7%

49.6%

15.9%

2.2%2.1%1.9%

28.3%

Global Coffee Competitive Landscape -2012 value market shares for R&G and instant

Source: Euromonitor 2012.

R&G$47.5Bn

Instant$28.3Bn

Top 3 players ~ 24% Top 3 players ~ 68%

Others

Others

14

R&G local and fragmented; Instant more consolidated

Strauss Coffee B.V. (SCBV)

15

How do we compete?

16

Leadership and talent

Brand equity

Managing a distinctive brand and product portfolio

Deal making and partnerships

Operational excellence

Flexibility and speed

Innovation

SCBV organizational model

17

CMOGennady Jilinksi

GM Coffee IsraelNadav

Arens-Arad

CHROMatty Harary

GM SCEMarius

MelesteuCFO

Amir Levin

Finance

Business dev.

75% 25%

50%

JV with

Governance through 3C BOD

CTC

Consumer knowledge

Legal counsel

GM RomaniaMarius

Melesteu

GM AdriaticMihailo Stanisic

Supply chain Jacek Guner

Green coffeeProcurementPaul Borgers

Strategy

SP/AFH

CEOTodd Morgan

GM CISDaniel Ironi

SCBV BOD

GM PolandKrzysztof Klimczak

Strong central leadership with experienced local management teams

Brazil

#1

Poland

#2

CIS

NA

Romania

#2

Israel

#1

Serbia

#2Ranking R&G

#3 ---NA #3#1 ---Ranking Instant

18

SCBV footprint

20.2% 12.8%NA 22.1%64.8% 30.4%2012 total volume market shares

Source: Nielsen 2012; Storenext 2012 in Israel.

Strong player in key emerging markets; leader in Israel

Top ten global coffee markets, by value$USD mm

19

10,652

6,378 5,834

5,471

3,729 3,579

2,373 1,791 1,597 1,556

0

2,000

4,000

6,000

8,000

10,000

12,000

U.S. Brazil Germany Japan Russia France Italy UnitedKingdom

Canada Poland

SCBV is present in three of the top ten largest coffee markets

Source: Euromonitor 2012.

SCBV presence

Israel70817%

Brazil177842%

CIS84420%

Poland40710%

Romania2576%

Serbia2125%

SCBV 2012 sales, by geography

2012 Sales: NIS 4.2Bn

20

Geographically diversified portfolio

Figures represent SCBV 50% share in 3C JV.

Organic growth, M&A and Partnerships

21

2008 - 20122008 - 2012

2000 - 20072000 - 2007

1992 - 19991992 - 1999

1958 - 19901958 - 1990

Building the home base -Israel

Building the home base -Israel

Initial Expansion to Eastern Europe1992 Poland

1994 Romania

1995 Russia

Initial Expansion to Eastern Europe1992 Poland

1994 Romania

1995 Russia

CEE growth and entry to Brazil2000 Brazil 3C

2000 Ukraine

2002 Serbia Doncafé

2004 Poland

2005 Poland MKCafé

2005 BrazilJ.V. with Santa Clara2007 Russia Totti

CEE growth and entry to Brazil2000 Brazil 3C

2000 Ukraine

2002 Serbia Doncafé

2004 Poland

2005 Poland MKCafé

2005 BrazilJ.V. with Santa Clara2007 Russia Totti

Strauss/TPG deal and further growth 2008 Russia CK

2009 Brazil Frisco,

Leticia

2010 Russia Le Cafe

2011 Brazil Fino Grão

2011 Russia Ambassador

2012 Germany NDKW

Strauss/TPG deal and further growth 2008 Russia CK

2009 Brazil Frisco,

Leticia

2010 Russia Le Cafe

2011 Brazil Fino Grão

2011 Russia Ambassador

2012 Germany NDKW

Focused growth in Developing Markets

‘Best-in-class’ operating capabilities

22

Total production capacity: ~300,000 MT

GC procurement – Switzerland, Vietnam and Brazil

9 R&G factories

2 Instant plants

2 facilities for other products

HQ – Amsterdam Amsterdam,The NetherlandsSCBV Head Office

Zug, SwitzerlandProcurement Centre

Poznan, PolandR&G

Belgrade, SerbiaR&G

Strunino, RussiaR&G and Instant Packing

Bucharest, RomaniaR&G, Instant Packing andMixes Packing

HCMC, Vietnam Procurement Office

NDKW, GermanyFreeze Dried Production

Eusébio, BrazilR&G

Natal, Brazil R&G

Belo Horizonte, BrazilR&G

Rio de Janeiro, Brazil Filter paper

Manhuacu & Varginha, BrazilGreen Coffee Processing

Mossoro, BrazilPowder juices and corn products

Zfat, IsraelInstant Production Lod, Israel

R&G

Brand portfolio

23

EconomyMainstreamPremium

Israel

Poland

Romania

Serbia

CIS

Brazil

Power brands

Diversified portfolio, based on strong local brands

139 153

162

201

173

156 168

194

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011 2012

+15.5%

+7.7%

Evolution of advertising and promotion (A&P) spend(NIS mm)

24

Driving investments in brands

Source: Company’s public fillings.Figures represent SCBV 50% share in 3C JV.

Development of SCBV sales and EBIT (NIS mm)

25

2,344 2,897 3,243 3,349 3,386

3,926 4,206

0

1,000

2,000

3,000

4,000

5,000

2006 2007 2008 2009 2010 2011 2012

Sales

192 231 255 270 257 260

312

0

100

200

300

400

2006 2007 2008 2009 2010 2011 2012

EBIT

Strong, consistent growth

Source: Company’s public fillings.Figures represent SCBV 50% share in 3C JV.

8.2% 8.0% 7.9% 8.1%7.6%

6.6%

7.4%

8.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2006 2007 2008 2009 2010 2011 2012 Q4 2012

Source: Company’s public fillings.Figures represent SCBV 50% share in 3C JV. 26

Development of SCBV EBIT margins

Margin recovery

Brazil: Tres Coracoes

27

28

50% 50%

CEOPedro Lima

3C BOD

Strong local partner and experienced management team

3C organizational structure

Real, Trillion / year

Source: McKinsey 29

Top eight projected consumer markets by 2020

20.4

10.9

7

4.43.5 3.2 3 2.8

0

5

10

15

20

25

USA China Japan Germany Brazil France England Italy

Brazil is expected to become the fifth largest consumer market by 2020

Source: FGV 30

Evolution of Brazil’s classes, by per capita income

E, 28%E, 13% E, 9%

D, 27%

D, 20%D, 16%

C38%

C55% C

60%

A, B, 7% A, B, 12% A, B, 15%

0%

20%

40%

60%

80%

100%

120%

2003 2011 2014E

A, B C D E

Per capita income (Real)Class E 0 - 751Class D 751 - 1.200Class C 1.200 - 5.174Class B 5.174 - 6.745Class A > 6.745

Brazil’s middle class is continuing to emerge

84 53 80 107 165

605

946 1,025

1,137

1,388

1,708 1,778

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Tres Coracoes – Sales50% as consolidated by Strauss, NIS mm

Corporate Rebranding

Penetration of Sao Paulo

50/50 partnership with Santa Clara

Brazil entry 

31

Strong growth

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

Brazil R&G volume market share

Source: Nielsen 2012

14.7% 16.3% 19.1% 20.3% 20.4%

21.0% 19.8%21.1% 20.9% 19.9%

7.2% 8.0%8.1% 8.3% 7.3%

57.1% 55.9% 51.7% 50.5% 52.4%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2008 2009 2010 2011 2012

Other players

32

Market still fragmented

Evolution of Tres Coracoes percentage of SCBV coffee sales (1)

33Source: Strauss Group public fillings.(1) 3C 50% share as consolidated by Strauss Group / Coffee sales (inc. SCBV 50% share in 3C JV).

26%

33% 32%

34%

41%

44%42%

25%

27%

29%

31%

33%

35%

37%

39%

41%

43%

45%

2006 2007 2008 2009 2010 2011 2012

Increasing contribution to SCBV sales

2012 Top three players volume market share, by major regions in Brazil (1)

34

41.4% 24.8% 40.2%49.4%

19.6%

15.3%

10.3%

26.2%17.3%

6.2%

10.0%

3.1%

11.6% 10.5%

6.2%

33.3%

61.7%

22.0% 22.8%

68.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

North East Minas Gerais, EspiritoSanto, Interior Rio de

Janeiro

Grand Rio de Janeiro Grand São Paulo Interior São Paulo

Source: Nielson 2012. Excluding the following regions: Sul (3C market share: 8.9%; #3); Central West (3C market share: 8.2%; #3); North (3C market share: 38.1%, #1).

All other

players

#3

#2

#1

Good leadership positions, still potential for growth

CIS (Russia and Ukraine)

35

435 487 477 608 756

1,696 1,796 1,688

1,952 2,084

530 468 629

712

658

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2008 2009 2010 2011 2012

Other R&G Instant

International coffee sales splitNIS mm

’08-’12 R&G CAGR: 5.3%

’08-’12 Other(1)

CAGR: 5.6%

’08-’12 Instant CAGR: 14.8%

36Source: Strauss Group public fillings.Note: Figures represent SCBV 50% share in 3C JV(1) Other includes primarily green coffee, drink powder (Frsico), and corn and corn products.

Instant is SCBV fastest growing category

207 214

458

543 543

695

844

0

100

200

300

400

500

600

700

800

900

2006 2007 2008 2009 2010 2011 2012

Strauss CIS – SalesNIS mm

April ‘08: $93mm Nov ‘10: $43mm

July ‘11: $11mm

Rebranding

37

Jan ’13:Bought the remaining 49% in Le 

Caféfor $13mm

Strong track record of organic growth and acquisitions

Brand portfolio

38

Non

-cof

fee

cate

gorie

sC

offe

e br

ands

Differentiated and distinctive brands

39

Enhanced R&G production capabilities Dedicated freeze dried facility

Strunino NDKW

Operating platform enhancement

Built in 2009, located in Upahl, Germany, 100 km

east of Hamburg, with ~120 full time employees

Plant continues to meet productivity targets

Reduction of freeze dried material cost of sales

R&G plant built in 2012

Instant packing

Strong platform to drive unit cost reduction

Israel

40

Strategy 360°

41

Traditional retail market: R&G, Instant, Espresso, 

Powders 

Coffee at WP, OCS

Hotels, Institutions

Coffee Shops, Café Elite Chain 

OTG‐ Impulse at purchase place: RTD 

Direct Sale channel: ESP

Single Portion - Israel

42

Launched Single Portion capsules in Israel in December 2012

Taste adapted to the preferences of the Israeli consumer profile

Distributed by selected chains in the organized market and selected POS in Café Elite

Value add and product development

Q&A

43