AUGA group

Management Reports • Dec 23, 2022

Disclosure 416554

AUGA group - Notification on material event

AUGA group, AB and its subsidiaries are planning stages of implementation of structural changes

AUGA group, AB (hereinafter — the Company) one of the largest vertically integrated organic producers in Europe, and its subsidiaries (hereinafter — the Group) is implementing changes in the organisational structure.

Aiming to fulfil the objectives of the five-year strategy (hereinafter — the Strategy) of the Group, published in 2020, the Company is optimising internal processes and creating a clearer and simpler structure for the Group. In the first stage, the planned changes include separating crop growing, dairy, and land management activities and consolidating new activities related to the development and expansion of agricultural innovations in the Group’s company AUGA Tech, UAB.

The separation of dairy farming from crop growing activities is currently being implemented, including the transfer of activity related assets within the Group. The aim of this organisational change initiative is to ensure that dairy activities enable their maximum economic potential, lead the way in terms of technological advances in agriculture, and promote sustainability indicators for dairy farming, which is one of the largest sources of emissions in the European Union’s farming chain. The aim is also to create the necessary preconditions for achieving the objectives of the Strategy: align the cost structure of organic and regular milk, improve animal welfare, and individually adapt animal care programmes from milking to feeding.

Innovative agricultural technologies developed by the Group are planned to be developed through the AUGA group, AB managed company AUGA Tech, UAB which aims to accelerate the achievement of the objectives of the innovation agenda. AUGA Tech, UAB will seek to concentrate agricultural technology activities, strengthen engineering competencies in the field of sustainable farming, and ensure the availability of developed technologies for farmers seeking to work sustainably, thus contributing to the reduction of greenhouse gas emissions from agricultural activities.

The next steps in structural changes aimed at achieving the objectives set out in the Group’s Strategy agenda are planned to be implemented during the first half of 2023.

CEO

Kęstutis Juščius

+ 370 5 233 5340