STRAUSS GROUP

UPDATED STRATEGY 2024-2026

SHAI BABAD / CEO & PRESIDENT, STRAUSS GROUP / MARCH 2024

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EVERYTHING WE DO IS DRIVEN BY OUR

PURPOSE OF

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STRONG FUNDAMENTALS

WE PLAY IN THE RIGHT CATEGORIES SUPPORTED BY LEADING POWER BRANDS

WITH WELL KNOWN POWER BRANDS

* Market potential refers to Brazil in Coffee category, Israel in snacks and China in POU. Snacking Including dairy, sweets & salty snacks Source: Mintel, Storenext, Euromonitor ** including China sales

WE STRIVE TO OFFER A HEALTHY PORTFOLIO FOR BALANCED NUTRITION

~15%

FUN FOR YOU

Salty & Sweet snacks, Dairy desserts

~85%

GOOD FOR YOU

Nutritious Dairy, Dips and spreads, Coffee & Water

WE ARE IN THE MIDDLE OF A STRATEGIC JOURNEY

TASTE THE FUTURE

2021-2023

TRANSFORM OUR WAY

2024-2026 UPDATED STRATEGY

2026+

ACCELERATE GROWTH

  • • Strauss one

  • • Portfolio management

  • • Cost savings

  • • Transforming the way our company operates

  • • Increased investments

  • • Culture of performance

  • • Focus and improve the core

  • • Snacking in homebase

  • • Expanding in Brazil

  • • Developing water solutions

  • • Planting seeds for future growth

  • • Harvest seeds of growth engines

  • • Expand into new categories and geographies through our competitive edge

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2023 PERFORMANCE DEMONSTRATES SOLID GROWTH BUT A DECLINE IN MARGINS vs ~11% EBIT MARGIN IN THE PAST

Net Sales

Gross profit

EBIT

Net profit

FCF

10,549m

Net Sales

+11%

Growth

3,383m

Gross

772m

EBIT

439m

Net profit

354m

FCF

81.7%

Cash conversion*

32.1%

Gross Margin

7.3%

EBIT Margin

4.2%

Net Margin

* Cash Conversion = FCF / NI 7

THE OVERALL DECLINE IN PERFORMANCE NECESSITATES

A REVIEW AND UPDATE OF STRATEGY

WHERE WE WANT TO GO

UPDATED STRATEGY - DOUBLE DOWN ON THE CORE

INTERNATIONAL WATER PLAYER

FUTURE READY & RESILIENT

RENEW THE CORE

  • ▪ Optimize core categories & brands in Israel with a focus on snacking

  • ▪ Optimize and maintain R&G leadership in Brazil

  • ▪ Optimize and increase portfolio offering of water solutions

EXPAND & BUILD

  • ▪ Build plant-based solutions & Innovation around the core in Israel

  • ▪ Expand Non-R&G and beyond coffee in Brazil through M&As and organic growth

  • ▪ Grow China and enter new geographies in Water

TRANSFORM

  • ▪ Embark on a journey of Performance transformation

  • ▪ Maintain values while adopting a high-performance culture

  • ▪ Optimize portfolio to focus on the core

STRATEGY WILL LEAD TO GROW CORE

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Strauss Group Ltd. published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 06:41:07 UTC.