AUGA group

Quarterly Report • Dec 1, 2020

AUGA GROUP AB

Consolidated Interim Financial Statements for 9 Months Period Ended 30 September 2020 (Unaudited)

2020

I. GENERAL INFORMATION
II. MANAGEMENT REPORT
III. FINANCIAL STATEMENTS
Consolidated balance sheet
Consolidated income statement
Consolidated statement of changes in equity
Consolidated statement of cash flows
VI. EXPLANATORY NOTES
1. Basis of the preparation
2. Share capital and reserves
3. The Structure of the Group
4. Property, plant and equipment
5. Biological assets
6. Inventory
7. Receivables and advance payments
8. Financial liabilities
9 Leases
10. Results of business segments
11. Operating expenses
12. Other income
13. Financial expenses
14. Business combinations
15. Material transactions with related parties
16. Subsequent events January - November 2020

I. GENERAL INFORMATION

1.1. Accounting period covered by the Report

Consolidated annual report was prepared for the nine months period ended 30 September 2020.

1.2. Key data on the issuer

Name of the company:	AUGA group, AB (hereinafter - AUGA group, AB or the Company)
Share capital:	EUR 65,950,713.08
Address of headoffice:	Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
Telephone:	+370 5 233 53 40
Fax:	+370 5 233 53 45
E-mail address:	info@auga.lt
Website:	www.auga.lt
Legal entity form:	Legal entity, joint stock company
Place and date of registration:	25 June 2003, Vilnius
Register code:	126264360
Registrant of the Register of Legal entities:	VĮ Registrų centras

1.3. Main lines of business of the Group

Operations area:	Organic agriculture
Main products manufactured:	Grain growing and sale, milk production and sale, mushroom growing and sale, end-
	consumer packaged goods production and sale.

1.4. The Structure of the Group-

As of 30 September 2020, the consolidated Group (hereinafter the Group) consists of the Company and one hundred thirty-seven subsidiaries (31 December 2019: one hundred thirty-six subsidiaries). Please refer to the financial statements note 3 for a detailed list of the Group companies.

1.5. Agreements with the mediators of securities public circulation

The Company and FMĮ Orion Securities UAB (A. Tumėno st. 4, B building, LT-01109 Vilnius) signed an agreement regarding handling of Shareholders accounts.

1.6. Data about securities traded on regulated markets

The securities of the Company are included in Main List of NASDAQ Vilnius stock exchange (symbol: AUG1L).

Type of shares	Number of shares	Share nominal value (in EUR)	Total share capital (in EUR)	Issue Code ISIN
Ordinary registered shares	227,416,252	0.29	65,950,713.08	LT0000127466

The securities of the Company are also traded in Warsaw stock exchange. Information about the Company's shares trading on the NASDAQ Vilnius.

						1.6. Data about securities traded on requlated markets (continued)
--	--	--	--	--	--	--------------------------------------------------------------------	--	--

Reporting period	Price, EUR			Date of last	Total turnover
	max	mın	Last session	session	Units	EUR, million
2020 quarter	0.362	0.265	0.273	2020.03.31	2,953,395	0.957
2020 Il quarter	0.406	0.268	0.398	2020.06.30	3,615,072	1.226
2020 III quarter	0.478	0.398	0.446	2020.09.30	1.725.034	0.754

II. MANAGEMENT REPORT

2.1. Overall results

During the first nine months of 2020, AUGA group, AB and its subsidiaries (hereinafter - the Group) sales revenue amounted to EUR 62.38 million, a 33% increase compared to the same period of 2019, when it was EUR 47.05 million. Revenue increased in all segments, with highest increases in crop-growing (sales increased by EUR 11.45 million) and mushrooms segments (sales increased by EUR 2.37 million).

The Group's gross profit for the first nine monted to EUR 11.88 million and was EUR 3.88 million higher compared to the same period of 2019 (gross profit for the first nine months of 2019 - EUR 8.00 million).

Main financial results, million EUR	9 months of 2020	9 months of 2019	9 months of 2018	Variance 2020/2019, % 2019/2018, %	Variance
Revenues	62.38	47.05	42.16	+33%	+12%
Gross profit (loss)	11.88	8.00	1.76	+48%	+355%
Gross profit margin	19%	17%	4%	+12%	+425%
Profit (loss) before taxes	0.44	(1.28)	(4.88)	n/a	+74%
PBT margin	1%	(3%)	(12%)	n/a	+75%
EBITDA	15.94	12.43	1.74	+28%	+614%
EBITDA margin	26%	26%	4%	0%	+650%

2.2. Crop growing segment overview

Results of crop growing segment consist of crop harvest fair value, sales of the previous and agricultural subsidies.

Harvest in the season 2019/2020

The total cultivated land area by the Group amounts to around 39.6 thousand hectares in the season of 2019/2020 and is more than 1 thousand larger than in the season of 2019/2020 30.3 thousand hectares have been seeded with cash crops (28.7 thousand in the season of 2018/2019) out of which 11.9 thousand ha are dedicated to wheat, 9.0 thousand ha to legumes and 9.3 thousand ha to other cash crops. The majority – 11.3 thousand ha – of wheat is winter wheat, in a similar proportion to the season of 2018/2019 since winter yield potential compared to summer alternatives. Forage crops comprise 8.5 thousand ha in the season of 2019/2020 compared to in 2018/2019 season.

As at 30 September 2020 the Group has finalized harvesting of when cash crops at the reporting date is partly harvested – soya, vegetables and clover will be harvested by the end of October, while oats, rye, barley and sugar beets were harvested by 30 September. For cash crops already harvested as at 30 September 2020 gain (loss) on recognition at fair value of agricultural produce at point of harvest was calculated. Fair value for remaining cultures was estimated using the methodology provided below. It is important to note that at this report harvesting of all cash crops except Soya, corn and clover were completed therefore preliminary data was already available for fair value estimation as at 30 September 2020.

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Harvested land plot by culture group, HA	9 months of 2020	9 months of 2019	9 months of 2018	Variance 2020/2019, % 2019/2018, %	Variance
Wheat	11.896	11.503	8.852	+3%	+30%
Legumes	9,035	8,039	10.682	+11%	-25%

Cost per 1 ha cultivated land, 9 months of EUR/ha	2020 /	9 months of 1 2019	9 months of 2018	Variance	Variance 2020/2019, % 2019/2018, %
Wheat	824	925	881	-11%	+5%
Legumes	839	830 /	790	+1%	+5%

(All amounts are in EUR thousand, unless stated otherwise)

Crop type	Yield used for revaluation of biological asset for season of 2019/2020	Actual result for the season of 2019/2020	Variance, %
Wheat	4,3	4,1	-4%
Legumes	3,0	2.7	-10%

Average price of 1 tonne of crop, 9 months of 9 months of 9 months of eliminating sales costs, EUR/t	2020	2019 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	2018 - 1	Variance 2020/2019, % 2019/2018, %	Variance
Wheat	208	262	268	-21%	-2%
Legumes	354	359	354	-2%	+1%

2.2. Crop growing segment overview (continued)

Table below provide information on gain (loss) per hectare for wheat and legumes.

Gain (loss) on revaluation of agricultural produce at point of harvest, EUR/ha	9 months of 2020	9 months of 2019	9 months of 2018	Variance 2020/2019, % 2019/2018, %	Variance
Wheat	29	177	-154	-83%	n/a
Legumes	130	-224	-266	+158%	+16%

Average gain per 1 hectare from whet significantly decreased in the season of 2019/2020 compared to to decreased market prices and lower quality of the Group succeeded in cutting wheat growing costs, which helped to diminish negative impact of price and quality decrease of wheat. Legumes result in the season of 2019/2020 were significantly better compared to previous seasons. Better results were achieved due to increased yield. However, the Group believes that the yield potential were around 10% higher for legumes and expects even better results in the future.

Crop growing segment sales results

Crop growing segment's sales revenue for the first nine months of 2020 amounted to EUR 16.45 million for the same period in 2019 (70% increase). By the end of first nine months of 2020 all harvest from the 2018/219 season was sold. In addition, the Group has sold around 43% of its current year harvesting of sugar beets, sales of sugar beets were recognized in September and not in October as in previous year. If sales of sugar beets were eliminated, sales in 2020 increased by 30% compared to previous year. Group's sales in the first nine months of 2020 increased by to larger quantities sold as the harvest quantities are increasing year-over-year.

	9 months of 2020	9 months of 2019	9 months of 2018	Variance 2020/2019, %	Variance 2019/2018, %
Sales revenue, EUR million	27.89	16.45	15.59	+70%	+5%
Cost of sales, EUR million	28.81	17.73	16.14	+63%	+10%
Inventory write-offs, EUR million	0.97	0.73	0.75	+33%	-2%
Result of sales of agricultural produce, EUR million	(1.89)	(2.01)	(1.29)	+6%	-56%

Crop growing segment's cost of sales for the first nine monted to EUR 28.81 million versus EUR 17.73 million in 2019. Cost of sales increase was 7% lower compared to revenue increase percentage. Total agricultural produce inventory writeoffs and impairment during first nine monted to EUR 0.97 million compared to EUR 0.73 million during the nine months of 2019. The increase in write-off events. Even though crops sales quantities increased, prices of commodities were dropping down in the first nine months of 2020, therefore total sales was EUR 1.89 million loss for the first nine months of 2020 and EUR 2.01 million loss for the same period in 2019.

Agricultural subsidies and gross profit of the crop growing segment

As at 30 September 2020 the Group has reclassified the subsidies related to grasslands and pastures from agricultural to dairy segment to have a better representation of the segments' results. The reclassification was performed in comparable period as well. The performed reclassification does not affect any other disclosures or results in general.

Total amount of agricultural subsidies accued during the first nine months of 2020 was EUR 5.27 million during the same period in 2019. The increase is related to a higher number of hectared for season 2020. The accual amount is based on the preliminary calculation for subsidies, based on the government subsidies programmes available. The Group does not expect to be sanctioned in 2020, as organic for which Group was sanctioned in 2019, have been removed for 2020.

Gross profit of crop growing segment including result of agricultural produce, gain (loss) on changes in foir value of biological assets and agricultural subsidies, amounted to EUR 10.16 million in the first nine months of 2020 compared to EUR 7.13 million the year earlier. It should be noted that EUR 1.45 million of fair value change of 2019/2020 season's winter crops was recognized in 2019 due to a significant biological transformation unusual for the winter season. If fair value change of winter rrops was recognized in 2020, gross profit of agriculture segment as at 30 September 2020 would amount to EUR 11.61 million.

	9 months of 2020	9 months of 2019	9 months of 2018	Variance 2020/2019 %	Variance 2019/2018, %
Gain (loss) on revaluation of biological assets (crops) and agricultural produce at point of harvest recognized in reporting period, EUR million	6.48	3.87	(3.79)	+67%	n/a
Total fair value gain (loss) on revaluation of biological assets, EUR million	7.93	3.87	(3.79)	+105%	n/a
Result of sales of agricultural produce, EUR million	(1.89)	(2.01)	(1.29)	-2%	+56%
Subsidies, EUR million	5.57	5.27	5.43	+6%	-3%
Gross profit, EUR million	10.16	7.13	0.35	+42%	+1,957%

(All amounts are in EUR thousand, unless stated otherwise)

	9 months of 2020	9 months of 2019	9 months of 2018	Variance 2020/2019, %	Variance 2019/2018, %
Total quantity of products sold, t	19.82	19.14	17.54	+4%	+9%
Milk, t	19.82	18.59	16.93	+4%	+10%
Cattle, t	0.52	0.54	0.61	-5%	-10%
Revenue, EUR million	8.17	7.63	6.53	+7%	+17%
Milk, EUR million	7.62	7.06	5.88	+8%	+20%
Cattle, EUR million	0.55	0.56	0.65	-3%	-13%
Cost of sales, EUR million	7.79	7.64	7.33	+2%	+4%
Milk, EUR million	7.24	7.07	6.68	+2%	+6%
Cattle, EUR million	0.55	0.56	0.65	-3%	-13%
Revaluation of biological assets, EUR million	(2.30)	(2.31)	(1.54)	0%	-50%
Subsidies, EUR million	1.96	1.66	1.862	+18%	-10%
Gross profit, EUR million	0.04	(0.65)	(0.48)	n/a	+36%

2.4. Mushroom segment overview

The revenue of mushroom growing segment was EUR 22.93 million in the first nine months of 2020, around EUR 1.79 million or 8% higher compared to the same period in 2019 when revenue from mushroom sales increased by EUR 2.26 million while revenue from mushroom seedbed sales decreased by EUR 0.46 million.

Mushroom sales revenue increased due to higher volume of sales – 9.65 thousand tonnes were sold during first nine months of 2020 compared to 9,01 thousand tonnes a year earlier (7% increase was mostly related to better mushroom yields compared to previous period

During the first nine months of 2020, share of organic mushrooms sold was around 7.6% of total volume of mushroms sold comparing to 7.3 % during the same period in 2019.

In the first nine months of 2020, average non-organic mushrooms sales price increased by around 4% compared to the same period in 2019. The average price of 1 tonne of mushrooms sold was 2,160 EUR/tonne in the first nine months of 2020 (2,071 EUR/tonne in the first nine months of 2019). The average mushroom price increased due to larger sales of packaged mushrooms and resale of forest mushrooms. However due unusual high yields of wild forests, the demand for fresh mushrooms decreased and the group had to sell bigger part of mushrooms for processing (with lower price).

	9 months of 2020	9 months of 2019	9 months of 2018	Variance 2020/2019, %	Variance 2019/2018, %
Sold mushrooms, t	9,652	9,013	9,105	+7%	-1%
Average price (Eur/t)	2,231	2,107	2,147	+6%	-2%
Total revenue, EUR million	22.93	21.14	19.03	+8%	+11%
Mushroom sales revenue, EUR million	21.53	19.27	17.27	+12%	+12%
Compost sales revenue, EUR million	1.39	1.86	1.75	-25%	+6%
Cost of sale, EUR million	21.55	19.63	17.21	+10%	+14%
Cost of mushrooms sold, EUR million	20.30	17.86	15.62	+14%	+14%
Cost of compost sold, EUR million	1.25	1.76	1.59	-29%	+11%
Gross profit, EUR million	1.37	1.50	1.82	-9%	-17%

The total cost of sales of the mushroom growing segment amounted to EUR 21.55 million in the first nine months of 2020 and was EUR 1.92 million higher compared to the same period in 2019 when it was EUR 19.63 million. Average cost of 1 tonne of mushrooms sold increased from 1,982 EUR/tonne. Cost of mushrooms mainly increased due to higher sales of packaged mushrooms.

Gross profit of mushroom growing segment in the first nine months of 2020 decreased by 9% to EUR 1.37 million compared to EUR 1.50 million in the first nine months of 2019. The decrease in gross profit is mainly related with market changes and fluctuations in current environment caused by global pandemic.

2.5. End-consumer packaged goods segment

Total revenue of end-consumer packaged goods segment amounted to EUR 3.36 million during the first nine months of 2020 compared to EUR 1.83 million a year earlier. Significant increase in end-consumer segment sales has been impacted by higher demand in both local and foreign markets. While COVID-19 pandemic has slowed the launch of new products, the demand for long shelf-life products compensated the deceleration. Moreover, the Group expanded its exports markets, which positively affected sales.

	9 months of 2020	9 months of 2019	9 months of 2018	Variance 2020/2019, %	Variance 2019/2018, %
Revenue, EUR million	3.36	1.83	1.00	+84%	+83%
Cost of goods sold, EUR million	3.07	1.82	0.94	+60%	+94%
Gross profit, EUR million	0.29	0.01	0.06	+2,900%	-83%
2	> 2

(All amounts are in EUR thousand, unless stated otherwise)

Country		Share of total sales, %	Increase in sales, %
	9 months of 2020	9 months of 2019	9 months of 2018	2020/2019	2019/2018
Lithuania	32%	52%	64%	+12%	+71%
USA	27%	12%	0%	+320%	n/a
Sweden	9%	3%	0%	+361%	n/a
Japan	5%	4%	0%	129%	n/a
Latvia	5%	5%	3%	+89%	+281%
Other	22%	24%	33%	125%	n/a

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ASSETS	Notes	30 September 2020 unaudited	31 December 2019 audited
Non-current assets
Property, plant and equipment	4	95,436	91,897
Right-of-use assets	4	36,689	36,211
Intangible assets	7	2,749	14 5,676
Long term receivables at amortized cost Investments accounted for using equity method		1,646 57	57
Financial assets at fair value through profit or loss		રૂટર	355
Deferred tax asset		1,069	1,069
Biological assets	5	9,123	9,397
Total non-current assets		147,124	144,676
Current assets
Biological assets	5	15,027	16,035
Inventory	ర్త	34,678	28,958
Trade receivables advance payments and other receivables	7	27,655	13,322
Cash and cash equivalents		3,428	3,732
Total current assets		80,788	62,047
TOTAL ASSETS		227,912	206,723
EQUITY AND LIABILITIES
Capital and reserves
Share capital	2	65,951	65,951
Share premium		6,707	6,707
Revaluation reserve		8,488	8,488
Legal reserve		1,834	1,834
Reserve to provide shares for employees		2,509	1,624
Retained earnings / (accumulated deficit)		4,821	5,102
Equity attributable to equity holders of the parent		90,310 364	89,706 369
Non-controlling interest Total equity		90,674	90,075
Non-current liabilities
Borrowings	ിന്റ	24,661	20,670
Obligations under lease Deferred grant income	9	40,895 2,949	36,150 2,992
Deferred tax liability		1,509	1,509
Total non-current liabilities		70,014	61,321
Current liabilities
Current portion of non-current borrowings	ിന്ന	5,044	10,819
Current portion of non-current obligations under lease	9	2,239	7,054
Current borrowings	8	22,039	19,300
Trade payables		26,151	13,433
Other payables and current liabilities		11,751	4,721
Total current liabilities		67,224	55,327
Total liabilities		137,238	116,648
TOTAL EQUITY AND LIABILITIES		227,912	206,723

		9 months period ended 30 September
	Notes	2020 unaudited	2019 unaudited
Revenues	10	62,379	47,054
Cost of sales	10	(54,681)	(40,618)
Gain (loss) on changes in fair values of biological assets and on recognition at fair value of agricultural produce at point of harvest	5, 10	4,179	1,564
GROSS PROFIT		11,877	8,000
Operating expenses	11	(7,262)	(6,831)
Other income	12	353	ട് 33
OPERATING PROFIT		4,968	1,702
Finance cost	13	(4,530)	(2,981)
Share of net profit (loss) of associates accounted for using the equity method
PROFIT (LOSS) BEFORE INCOME TAX		438	(1,279)
Income tax expense
NET PROFIT / (LOSS) FOR THE PERIOD		438	(1,279)
ATTRIBUTABLE TO:
Equity holders of the Company		420	(1,287)
Non-controlling interest		18 438	8 (1,279)
STATEMENT OF OTHER COMPREHENSIVE INCOME
NET PROFIT/ (LOSS) FOR THE PERIOD		438	(1,279)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		438	(1,279)
ATTRIBUTABLE TO:
Equity holders of the Company		420	(1,287)
Non-controlling interest		18	8
		438	(1,279)

	Share capital	Share premium	Revaluati on reserve	Currency exchange differences	Reserve to provide shares for employees	Legal reserve	Retained earnings	Equity attributable to the shareholders of the company	Non- controlling interest	Total
Balance as at 31 December 2018 (audited)	65,951	6,707	7,155		957	1,649	8,937	91,356	ਤੇ ਤੇ ਉਹ	91,715
Comprehensive income
Net profit (loss) for the period							(3,228)	(3,228)	10	(3,218)
Share based payment expenses							247	247		247
Other comprehensive income
Revaluation of land, net of tax			1,332					1,332		1,332
Total comprehensive income			1,332				(2,982)	(1,649)	10	(1,639)
Transactions with shareholders
Transfer to legal reserve						185	(185)
Transfer to reserve to provide shares for employees					667		(667)
Total transactions with shareholders					667	185	(852)
Balance as at 31 December 2019 (audited)	65,951	6,707	8,488		1,624	1,834	5,102	89,706	369	90,075
Comprehensive income
Net profit (loss) for the period							420	420	18	438
Share based payment expenses							185	185		185
Other comprehensive income
Revaluation of land (net of tax)										-
Total comprehensive income							રે રેણવાડી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં પ્રાથમિક શાળા, આંગણવાડી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય થયેલી છે. આ ગામનાં લોકોનો મુખ્ય વ્યવસાય ખેતી, ખ	605	18	623
Transactions with shareholders
Transfer to legal reserve
Transfer to reserve to provide
shares for employees					885		(885)
Dividends granted by subsidiaries to the non- controlling interest									(23)	(23)
Total transactions with
shareholders					885		(885)		(23)	(23)
Balance as at 30 September 2020 (unaudited)	65,951	6,707	8,488		2,509	1,834	4,821	90,310	364	90,674

		9 months period ended 30 September
	Notes	2020 unaudited	2019 unaudited
Cash flows from /(to) operating activities
Net profit (loss) before income tax and non-controlling interest		438	(1,279)
Adjustments for non-cash expenses (income) items and other adjustments
Depreciation expenses (PP&E)	4	5,544	5,712
Depreciation expenses (ROU assets)	4	4,497	4,400
Amortization expenses		4	4
Expenses of share-based payments	11	185	149
Write offs and impairment of PPE
(Gain) loss on sales of non-current assets		(12)	(56)
(Gain) loss on sale of investment property
Write-offs of inventory	5,6	1,416	1,182
Net finance cost	13	2,559	1,637
Net finance cost (IFRS 16)	13	1,726	1,011
Loss (gain) on changes in fair value of biological assets	5	(4,179)	(1,564)
Grants related to assets, recognized as income		(313)	(326)
Changes in working capital
(Increase) decrease in biological assets		6,169	(8,021)
(Increase) decrease in trade receivables and prepayments		(15,166)	(6,690)
(Increase) decrease in inventory		(6,084)	(5,048)
(Decrease) increase in trade and other payables		13,284	11,522
Cash flows from operating activities		9,998	2,633
Interest paid, netto		(2,184)	(1,637)
Net cash flows from /(to) operating activities		7,814	996
Cash flows from /(to) investing activities
Purchase of property, plant and equipment	4	(4,527)	(2,833)
Purchase of investments	14	(1,504)
Proceeds from sales of investment property, PPE		122	383
Proceeds from sales of investments
Grants related to assets, received from NPA		270
Other loans repaid			857
Other loans granted			(539)
Net cash flows from/(to) investing activities		(5,639)	(2,182)
Cash flows from /(to) financing activities
Loans repaid to banks		(2,575)	(2,741)
Borrowings received		5,739	3,730
Other borrowings obtained (paid)		(3,553)	440
Finance lease repayments		(2,091)	(1,714)
Net cash flows from/(to) financing activities		(2,480)	(285)
Net (decrease) / increase in cash and cash equivalents		(305)	(1,471)
Cash and cash equivalents at the beginning of the period		3,732	2,281
Cash and cash equivalents at the end of the period		3.428	808

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Revaluation of biological assets (livestock) (continued)

For valuation of other livestock the Group calculates the fair value by taking the average price of meat per kilo. For young bulls and heifers, the value of livestock is determined by using the market values of meat (different groups of animals) and multiplying the price of 1 kg by the total weight of specific group of animals.

Share-based payments

Total cumulative expenses of share-based payments are calculated based on the formula described below. The expenses are accrued in the profit (loss) statement and equity based since the grant date till the reporting date. Each year the entity will revise the expense to reflect the best available estimate of equity instruments expected to vest.

The total expenses of share-based payments are calculated based on the formula:

Share price @ grant date x Granted shares x (1-annual staff turnover)^(vesting period)

Where:

The share price of options is based on the closing price at grant date at which the company's shares are traded on the Nasdaq Stock Exchange.

The grant date of the Option is set to be the share-based payment agreement between the Company and the receiver as all the terms and conditions are set in this agreements which would need to be confirmed at a later date.

Granted shares - shares to be granted to employee based on the Option agreement.

Staff turnover – chance that the option will be exercised is adjusted by the forecasted staff turnover percent during the vesting period. The ratio is calculated based on historical staff turnover data of 2 years. The historical starnover only of the positions which are set to receive the share-based payments. The turnover of other positions are excluded from the ratio.

There are option agreements which a special condition – that the receivers do not need to fulfill the service condition, but they will still need to wait 3 years vesting able to exercise the option. Due to this staff turnover adjustment is excluded in the calculation of the expenses of these options as it does not affect their chances to receive the option.

2. Share capital and reserves

Share capital and premium of the Company

The share capital of AUGA group AB as at 30 September 2020 was EUR 65,951 thousand (as at 31 December 2019: EUR 65,951 thousand). The share capital is divided into 227,416,252 ordinary shares (2019: 227,416,252 ordinary shares). Each issued share has a EUR 0.29 nominal value and fully paid. Each share had usual material and intangible rights as per Law on Companies of the Republic of Lithuania and the Company's statutes.

On 23 August 2018 AUGA group AB successfully completed secondary public offering 40,000,000 share units. The shares were sold for the total amount of EUR 0.45 price per share. Share premium represent the price premium paid by the shareholders, deducting the expenses related to the whole offering process. Share premium at the end of 30 September 2020 amounted to EUR 6,707 thousand (31 December 2019: EUR 6,707 thousand).

Shareholders

Total number of shareholders on 30 September 2020 was 1,727 (one thousand seventy) and on 31 December 2019 it was 1,330 (one thousand three hundred thirty).

2. Share capital and reserves (continued)

The shareholders owning more than 5% of shares in the Company are the following:

	30 September 2020		31 December 2019
Entity / person	Number of shares	0/0 owned	Number of shares	% owned
Baltic Champs Group UAB (identification code: 145798333; address: Poviliškiai v., Siauliai region mun., Lithuania)	125,167,939	55.04	125,167,939	55.04
European Bank for Reconstruction and Development (identification code: EBRDGB2LXXXX; address: One Exchange Square, London EC2A 2JN, UK)	19,810,636	8.71	19,810,636	8.71
ME Investicija UAB (identification code: 302489393; address: Račių st. 1, Vilnius, Lithuania)	19,082,801	8.39	19,082,801	8.39
Žilvinas Marcinkevičius	15,919,138	7.00	15,919,138	7.00
Other shareholders	47,435,738	20.86	47,435,738	20.86
Total	227,416,252	100.00	227,416,252	100.00

Information on the shares of the Company held by the members of the Board and the top executives as of 30 June 2020:

Name, Surname	Position	Owned shares in the Company, units Owned shares in the Company, %
Kestutis Juščius*	CEO	1.392	0.0006%
Tomas Krakauskas**	Member of the Board	119,000	0.052%
Mindaugas Ambrasas		6.881	0.003%
* Kacturic Juččius

ščius, CEO, is the ultimate owner of Baltic Champs Group UAB, controlling 55.04% of the Company's shares.

** Tomas Krakauskas is an employee of UAB ME Investicijos, which holds 8.39% of the Company's shares.

Reserves of the Company

A legal reserve is a compulsory reserve under Lithuanian legislation. Annual transfer of at least 5% of net profit, calculated in accordance with Lithuanian regulation on accounting, is compulsory until the reserve including share premium reaches 10% of the share capital. The legal reserve can be used to cover the accumulated losses. The lompany equalled to EUR 1,834 thousand as at 30 September 2020 (EUR 1,834 thousand as at 31 December 2019).

Revaluation reserve comprises revaluation of land portfolio valuation is performed by independent valuator. The valuation for reporting period was performed in 2019. Revaluation reserve as at 30 September 2020 amounted to EUR 8,488 thousand (EUR 8,488 thousand as at 31 December 2019).

In 2018 the Company formed a reserve to grant shares for employees. The value of the reserve increased by EUR 885 thousand in 2020 due to implementation of employee share option (in 2019 reserve increased by EUR 667 thousand). Reserve to grant shares for employees as at 30 September 2020 amounted to EUR 1,624 thousand as at 31 December 2019).

Employee Option Plan was approved by shareholders at the annual general shareholders' meeting on 30 April, 2019. The service condition for the Option receiver is to complete a 3-year term of service to the condition is met employee is eligible to exercise the option.

Reserve to grant shares for employees	Number of shares,
	units	Value, EUR
Total reserve as at 31 December 2018	3,300,000	957
Shares allocated to employees based on option agreements as at 31 December 2019	2,548,860	739
Unallocated shares as at 31 December 2019	3,051,140	885
Total reserve as at 31 December 2019	5,600,000	1,624
Shares allocated to employees based on option agreements as at 30 September 2020	4,765,690	1,382
Unallocated shares as at 30 September 2020	3,886,034	1,127
Total reserve as at 30 September 2020	8,651,724	2,509

In 2020 the reserve to provide share for employees was increased by 3,051,724 shares with a nominal value of EUR 0.29 and in total of EUR 885 thousand. In 2020 the Group recognised employee benefit expenses of EUR 185 thousand related to employees.

						Group ownership
No.	Name of subsidiary	Legal	Legal entity	Registered office	Profile		interest, %
		form	code			2020 09 30	2019 12 31
1.	Baltic Champs UAB	* 4	302942064	Šiaulių region, Poviliškių v., 15	**A	100,00%	100,00%
2.	AVG Investment UAB	* 4	300087691	Vilniaus mun., Vilnius,	**G	100,00%	100,00%
				Konstitucijos av. 21C
3.	AWG Investment 1 UAB	* 4	301745765	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**G	100,00%	100,00%
4.	AWG Investment 2 UAB	*4	301807590	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**G	100,00%	100,00%
ട.	Agross UAB	* 4	301807601	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**H	100,00%	100,00%
6.	Grain Lt UAB	* 4	302489354	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**H	97,41%	97,41%
7.	AgroGis UAB	* 4	302583978	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**D	95,00%	95,00%
8.	Agro Management Team UAB	* 4	302599498	Jonavos region, Bukonių v., Lankesos st. 2	**E	100,00%	100,00%
9.	Agrotechnikos centras UAB	* 4	302589187	Jonavos region, Bukonių v., Lankesos st. 2	** =	100,00%	100,00%
10.	AUGA trade UAB	*4	302753875	Jonavos region, Bukonių v., Lankesos st. 2	**H	100,00%	100,00%
11.	Agricultural entity Zemės fondas	*1	300558595	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**E	100,00%	100,00%
12.	Zemės vystymo fondas 6 UAB	* 4	300589719	Vilniaus mun., Vilnius, Smolensko st. 10	**E	100,00%	100,00%
13.	Zemės vystymo fondas 9 UAB	* 4	300547638	Jonavos region, Bukonių v., Lankesos st. 2	**E	100,00%	100,00%
14.	Zemės vystymo fondas 10 UAB	* 4	301522723	Jonavos region, Bukonių v., Lankesos st. 2	**E	100,00%	100,00%
15.	Zemės vystymo fondas 20 UAB	* 4	300887726	Jonavos region, Bukonių v., Lankesos st. 2	**B	100,00%	100,00%
16.	AUGA Grūduva UAB	*4	174401546	Sakių region, Gotlybiškių v.,	**A	98,97%	98,97%
17.	Agricultural entity AUGA Spindulys	*1	171330414	Radviliškio region, Vaitiekūnų v., Spindulio st. 13	**A	99,99%	99,99%
18.	Agricultural entity AUGA Smilgiai	*1	168548972	Panevėžio region, Smilgių mstl. Panevėžio st. 23-1	**A	100,00%	100,00%
19.	Agricultural entity AUGA Skėmiai	*1	171306071	Radviliškio region, Skėmių v., Kėdainių st. 36	**A	99,97%	99,97%
20.	Agricultural entity AUGA Nausodė	*1	154179675	Anykščių region, Kirmėlių v.,	**A	99,93%	99,93%
21.	Agricultural entity AUGA Dumšiškės	*1	172276179	Raseinių region, Paraseinio v.,	**A	99,88%	99,88%
22.	Agricultural entity AUGA Zadžiūnai	*1	175706853	Siaulių region, Zadžiūnų v., Gudelių st. 30-2	**A	99,81%	99,81%
23.	Agricultural entity AUGA Mantviliškis	*1	161274230	Kėdainių region, Mantviliškio v.,	**A	99,94%	99,94%
24.	Agricultural entity AUGA Alanta	*1	167527719	Molėtų region, Kazlų v., Skiemoniu st. 2A	**A	99,99%	99,99%
25.	Agricultural entity AUGA Eimučiai	*1	175705032	Šiaulių region, Zadžiūnų v., Gudelių st. 30-2	**A	99,24%	99,24%
26.	Agricultural entity AUGA Vėriškės	*1	171305165	Radviliškio region, Vėriškių v.,	**A	99,93%	99,93%
27.	Agricultural entity AUGA Zelsvelė	*1	165666499	Marijampolės mun., Zelsvos v.,	**A	99,86%	99,86%
28.	Agricultural entity AUGA Lankesa	*1	156913032	Jonavos region, Bukonių v.,	**A	96,91%	96,91%
29.	Agricultural entity AUGA Kairėnai	*1	171327432	Radviliškio region, Kairėnų v.,	**A	98,47%	98,47%
30.	Agricultural entity AUGA Jurbarkai	*1	158174818	Jurbarko region, Klišių v., Vytauto Didžiojo st. 99	**A	98,46%	98,46%

(All amounts are in EUR thousand, unless stated otherwise)

No.	Name of subsidiary	Legal form code	Legal entity	Registered office	Profile	Group ownership interest, %
						2020 09
31.	Agricultural entity AUGA	*1	168565021	Panevėžio region, Gustonių v., M.	**A	30 100,00%	2019 12 31 100,00%
32.	Gustoniai Cooperative entity Siesarčio ūkis	*3	302501098	Kriaučiūno st. 15 Sakių region, Gotlybiškių v.,	**A	99,44%	99,44%
33.	Cooperative entity Kašėta	*3	302501251	Mokyklos st. 18 Jonavos region, Bukonių v., Lankesos st. 2	**A	99,44%	99,44%
34.	Agricultural entity Gustonys	*1	302520102	Panevėžio region, Gustonių v., M. Kriaučiūno st. 15	**E	100,00%	100,00%
35.	Agricultural entity Skemiy pienininkystės centras	*1	302737554	Radviliškio region, Skėmių v., Alyvų st. 1	**A	48,67%	48,67%
36.	Cooperative entity Agrobokštai	*3	302485217	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**A	97,94%	97,94%
37.	Cooperative entity Dotnuvėlės valdos	*3	302618614	Šiaulių region, Zadžiūnų v., Gudelių st. 30-2	**A	99,22%	99,22%
38.	Cooperative entity Nevėžio lankos	*3	302618596	Kėdainių region, Mantviliškio v., Liepos 6-osios st. 60	**A	96,51%	96,51%
39.	Cooperative entity Radviliškio kraštas	*3	302618742	Radviliškio region, Skėmių v., Kėdainių st. 13	**A	98,67%	98,67%
40.	Cooperative entity Sventosios pievos	*3	302618201	Raseinių region, Kalnujų mstl. Zieveliškės st. 1	**A	96,36%	46,36%
41.	Cooperative entity Kairių ūkis	*3	302615194	Panevėžio region, Gustonių v., M. Kriaučiūno st. 15	**A	98,68%	98,68%
42.	Cooperative entity Siaurinė valda	*3	302615187	Siaulių region, Poviliškių v., 15	**A	96,15%	96,15%
43.	Cooperative entity Šušvės žemė	*3	302618767	Kelmės region, Pašiaušės v., Vilties st. 2	**A	98,43%	98,43%
44.	Cooperative entity Zalmargelis	*3	303145954	Vilniaus mun., Vilnius, Smolensko st. 10-100	**A	98,32%	98,32%
45.	Cooperative entity Juodmargelis	*3	303159014	Raseiniy region, Kalnujų mstl. Zieveliškės st. 1	**A	99,35%	99,35%
46.	Cooperative entity Agromilk	*3	302332698	Raseinių region, Kalnujų mstl. Zieveliškės st. 1	**A	96,28%	96,28%
47.	Cooperative entity Purpurėja	*3	302542337	Sirvintų region, Sirvintų v., Zosinos st. 7	**A	99,53%	99,53%
48.	Bukonių ekologinis ūkis UAB	* 4	302846621	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**A	100,00%	100,00%
49.	Agrosaulė 8 UAB	* 4	302846105	Vilniaus mun., Vilnius, Smolensko st. 10-100	**G	100,00%	100,00%
50.	Biržai distr., Rinkuškiai reclamation infrastructure users association	*2	302465556	Biržų region, Biržai, Vytauto st. 38	**A	48,67%	48,67%
51.	Pasvalys distr., Pušalotas reclamation infrastructure users association	*2	302465563	Pasvalio region, Diliauskų v., Diliauskų st. 23	**A	48,67%	48,67%
52.	Skėmiai reclamation infrastructure users association	*2	303170256	Šiaulių region, Zadžiūnų v., Gudelių st. 30-2	**A	48,67%	48,67%
53.	Vaitiekūnai reclamation infrastructure users association	*2	303170306	Šiaulių region, Zadžiūnų v., Gudelių st. 30-2	**A	48,67%	48,67%
54.	Association Grūduvos melioracija	*2	302567116	Sakių region, Gotlybiškių v., Mokyklos st. 2	**A	65,81%	65,81%
55.	Pauliai reclamation infrastructure users association	*2	303169909	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
56.	Nausode reclamation infrastructure users association	*2	304219592	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**A	70,74%	70,74%
57.	Traktorių nuomos centras UAB	*4	302820808	Jonavos region, Bukonių v., Lankesos st. 2	**A	100,00%	100,00%
58.	Traktorių nuomos paslaugos UAB	*4	302820797	Jonavos region, Bukonių v., Lankesos st. 2	**A	100,00%	100,00%
59.	Arnega UAB	* 4	302661957	Jonavos region, Bukonių v., Lankesos st. 2	**A	100,00%	100,00%
60.	AgroSchool OU	* ୧	12491954	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
61.	Public institution AgroSchool	*5	303104797	Vilniaus mun., Vilnius, Smolensko st. 10-100	**C	50,00%	50,00%
62.	AUGA Ramučiai UAB	*4	302854479	Akmenės region, Ramučių v., Klevų st. 11	**A	100,00%	100,00%
63.	AUGA Luganta UAB	*4	300045023	Kelmės region, Pašiaušės v.,	**A	100,00%	100,00%
64.	eTime invest UAB	*4	300578676	Vilniaus mun., Vilnius, Saltoniškių st. 29	**G	100,00%	100,00%

(All amounts are in EUR thousand, unless stated otherwise)

						Group ownership
No.	Name of subsidiary	Legal form	Legal entity Registered office code	Profile	2020 09	interest, %
						30	2019 12 31
65.	ZVF Projektai UAB	*4	300137062	Jonavos region, Bukonių v., Lankesos st. 2	**E	52,62%	52,62%
66.	Agricultural entity Alantos ekologinis ūkis	*1	303324747	Molėtų region, Kazlų v., Skiemonių st. 2A	**A	100,00%	100,00%
67.	Agricultural entity Dumšiškių ekologinis ūkis	*1	303324722	Raseinių region, Paraseinio v., Paraseinio st. 2	**A	100,00%	100,00%
68.	Agricultural entity Eimučių ekologinis ūkis	*1	303324715	Šiaulių region, Zadžiūnų v., Gudelių st. 30-2	**A	100,00%	100,00%
69.	Agricultural entity Grūduvos ekologinis ūkis	*1	303324804	Šakių region, Gotlybiškių v., Mokyklos st. 2	**A	100,00%	100,00%
70.	Agricultural entity Jurbarkų ekologinis ūkis	*1	303325361	Jurbarko region, Klišių v., Vytauto Didžiojo st. 99	**A	100,00%	100,00%
71.	Agricultural entity Kairėnų ekologinis ūkis	*1	303325774	Radviliškio region, Vaitiekūnų v., Spindulio st. 13-2	**A	100,00%	100,00%
72.	Agricultural entity Lankesos ekologinis ūkis	*1	303325710	Jonavos region, Bukonių v., Lankesos st. 2	**A	100,00%	100,00%
73.	Agricultural entity Mantviliškio ekologinis ūkis	*1	303325703	Kėdainių region, Mantviliškio v., Liepos 6-osios st. 60	**A	100,00%	100,00%
74.	Agricultural entity Nausodės ekologinis ūkis	*1	303325781	Anykščių region, Nausodės v., Nausodės st. 55	**A	100,00%	100,00%
75.	Agricultural entity Skėmių ekologinis ūkis	*1	303325692	Radviliškio region, Skėmių v., Kėdainių st. 13	**A	100,00%	100,00%
76.	Agricultural entity Smilgiy ekologinis ūkis	*1	303325824	Panevėžio region, Smilgiai, Panevėžio st. 23-1	**A	100,00%	100,00%
77.	Agricultural entity Spindulio ekologinis ūkis	*1	303325817	Radviliškio region, Vaitiekūnų v., Spindulio st. 13-2	**A	100,00%	100,00%
78.	Agricultural entity Vėriškių ekologinis ūkis	*1	303325849	Radviliškio region, Skėmių v., Kėdainių st. 13	**A	100,00%	100,00%
79.	Agricultural entity Zadžiūnų ekologinis ūkis	*1	303325870	Šiaulių region, Zadžiūnų v., Gudelių st. 30-2	**A	100,00%	100,00%
80.	Agricultural entity Zelsvelės ekologinis ūkis	*1	303325856	Marijampolės mun., Zelsvos v., Zelsvelės st. 1	**A	100,00%	100,00%
81.	Prestviigi OU	* Q	12654600	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
82.	Turvaste partners OU	* ୧	12655410	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
83.	Nakamaa Agro OU	* Q	12655522	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10113	**G	100,00%	100,00%
84.	Hindaste Invest OU	* Q	12655384	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
85.	Tuudi River OU	* Q	12655640	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
86.	Palderma Partners OU	* Q	12654959	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
87.	Ave-Martna Capital OU	* Q	12655155	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
88.	Hobring Invest OU	* ଚ	12655427	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
89.	Rukkirahhu Capital OU	* Q	12655232	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
90.	Pahasoo OU	* ୧	12655367	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
91.	Cooperative entity Ganiklis	*3	303429417	Radviliškio region, Skėmių v., Alyvy st. 1-3	**A	98,09%	98,09%
92.	Cooperative entity Ganiavos gėrybės	*3	303429431	Radviliškio region, Skėmių v., Alyvų st. 1-3	**A	98,09%	98,09%
93.	Čooperative entity Zemėpačio pieno ūkis	*3	303432388	Raseinių region, Ariogalos sen. Gėluvos v., Dvaro st. 30	**A	98,09%	98,09%
94.	Cooperative entity Žemynos pienelis	*3	303427989	Raseinių region, Ariogalos sen. Gėluvos v., Dvaro st. 30	**A	98,09%	98,09%
95.	Cooperative entity Lygiadienio ūkis	*3	303428087	Radviliškio region, Skėmių v., Alyvų st. 1-3	**A	98,09%	98,09%
96.	Cooperative entity Laumės pieno ūkis	*3	303427996	Raseinių region, Ariogalos sen. Gėluvos v., Dvaro st. 30	**A	98,09%	98,09%
97.	Cooperative entity Medeinos pienas	*3	303428112	Raseinių region, Ariogalos sen. Gėluvos v., Dvaro st. 30	**A	98,09%	98,09%
98.	Cooperative entity Gardaitis	*3	303429381	Radviliškio region, Skėmių v., Alyvų st. 1-3	**A	98,09%	98,09%

(All amounts are in EUR thousand, unless stated otherwise)

		Legal	Legal entity			Group ownership interest, %
No.	Name of subsidiary	form	code	Registered office	Profile	2020 09 30	2019 12 31
99.	Cooperative entity Dimstipatis	*3	303429424	Mažeikių aplinkl. 9, Naikių v., Mažeikių apylinkės sen., Mažeikių	**A	98,09%	98,09%
100.	Cooperative entity Aušlavis	*3	303429456	region, Radviliškio region, Skėmių v., Alyvy st. 1-3	**A	98,09%	98,09%
101.	Cooperative entity Austėjos pieno ūkis	*3	303428094	Mažeikių aplinkl. 9, Naikių v., Mažeikių apylinkės sen., Mažeikių region,	**A	98,09%	98,09%
102.	Cooperative entity Aitvaro ūkis	*3	303429374	Radviliškio region, Skėmių v., Alyvų st. 1-3	**A	98,09%	98,09%
103.	Cooperative entity Giraičio pieno ūkis	*3	303429399	Mažeikių aplinkl. 9, Naikių v., Mažeikių apylinkės sen., Mažeikių	**A	98,09%	98,09%
104.	Fentus 10 GmbH	* ଚ	HRB106477	region, StraBe des 17 Juni 10b 10623 Berlin, Germany	**G	100,00%	100,00%
105.	Norus 26 AG	* Q	HRB109356B	StraBe des 17 Juni 10b 10623 Berlin, Germany	**G	100,00%	100,00%
106.	LT Holding AG	* Q	HRB109265B	StraBe des 17 Juni 10b 10623 Berlin, Germany	**G	100,00%	100,00%
107.	KTG Agrar UAB	* 4	300127919	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**A	100,00%	100,00%
108.	Agrar Raseiniai UAB	* 4	300610316	Raseinių region, Ariogalos sen.	**A	100,00%	100,00%
109.	AUGA Mažeikiai UAB	*4	300610348	Gėluvos v., Dvaro st. 30 Mažeikių av. 9, Naikių v., Mažeikių	**A	100,00%	100,00%
110.	PAE Agrar UAB	* 4	300867691	region, Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
111.	Delta Agrar UAB	*4	300868875	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
112.	KTG Grūdai UAB	* 4	302637486	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
113.	KTG Eko Agrar UAB	*4	300510650	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
114.	Agronita UAB	*4	300132574	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
115.	Agronuoma UAB	* 4	303204954	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
116.	VL Investment Vilnius 12 UAB	* 4	303205611	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
117.	Agrar Ašva UAB	* 4	301608542	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
118.	Agrar Varduva UAB	* 4	301608791	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
119.	Agrar Seda UAB	* 4	301608777	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
120.	Agrar Kvistė UAB	* 4	302308067	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
121.	Agrar Luoba UAB	* 4	302308035	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
122.	Agrar Gaja UAB	* 4	302594412	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
123.	Agrar Ariogala UAB	* 4	301626540	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
124.	Agrar Girdžiai UAB	*4	301621568	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
125.	Agrar Vidauja UAB	* 4	301622531	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
126.	Agrar Raudonė UAB	* 4	302309532	Raseinių region, Gėluvos v., Dvaro	**A	100,00%	100,00%
127.	Agrar Venta UAB	* 4	302307855	st. 30 Raseinių region, Gėluvos v., Dvaro	**A	100,00%	100,00%
128.	Agrar Nerys UAB	* 4	302594063	st. 30 Raseinių region, Gėluvos v., Dvaro	**A	100,00%	100,00%
129.	Agrar Gëluva UAB	*4	302312133	st. 30 Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
130.	Agrar Betygala UAB	*4	302312222	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
131.	Agrar Dubysa UAB	*4	302312215	Raseinių region, Gėluvos v., Dvaro	**A	100,00%	100,00%
	2			st. 30

No. Name of subsidiary		Legal	Legal entity	Registered office	Profile	Group ownership interest, %
		form	code			2020 09
						30	2019 12 31
132.	Agrar Pauliai UAB	*4	302312165	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
133	Agrar Mituva UAB	*4	302312172	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
134.	AUGA Raseiniai UAB	*4	304704364	Raseinių region, Kalnujai, Zieveliškės st. 1	**A	100,00%	100,00%
135.	Tėvynės žemelė UAB	*4	303301428	Antano Tumėno st. 4, Vilniaus mun., Vilnius	**G	100,00%	100,00%
136.	Tėviškės žemelė UAB	* 4	303207199	Antano Tumėno st. 4, Vilniaus mun., Vilnius	**E	100,00%	100,00%
137.	Cooperative entity Grybai LT	*3	302765404	Žibalų st. 37, Širvintos	**A	100,00%	22,03%

• COMMENTS:
• *1 Agricultural entity
• *2 Association
• *3 Cooperative entity
• *4 Private limited Company
• *5 Public institution
• *6 Foreign legal entity
• **A Agricultural operations

**B Cash pool of the group

**

**C Human resource management

**D IT system development

• **E Land management
• **F Lease of machinery
• **G Management of subsidiaries

**H Trade and logistics

(All amounts are in EUR thousand, unless stated otherwise)

GROUP	Land	Buildings	Constructions and machinery	Vehicles, equipment and other property, plant and equipment	Construction in progress	Total
Carrying amount
As at 31 December 2018	21,638	41,495	25,701	2,746	1,312	92,892
Change in accounting policy	38,031	975				39,006
- additions	777	e	1,488	324	1,655	4,250
- disposals and write-offs	(19)	(37)	(305)	(117)	(339)	(817)
- revaluation	3,152					3,152
- depreciation (including ROU assets)	(5,359)	(2,382)	(4,282)	(755)		(12,778)
- reclassifications	2,401	921			( 921)	2,401
As at 31 December 2019	60,622	40,978	22,602	2,198	1,707	128,108
- purchase of subsidiaries		2,282	2,238	121		4,641
- additions	5,677	328	1,822	648	951	9,426
- disposals and write-offs - revaluation	(5)	(17)	(67)	(20)		(109)
- depreciation (including ROU assets)	(4,393)	(1,871)	(3,141)	(536)		(9,941)
- reclassifications		256	724	2	(981)
As at 30 September 2020	61,901	41,955	24,178	2,413	1,677	132,125
Acquisition cost as at or revaluated amount
31 December 2018	21,638	52,695	39,547	5,101	1,312	120,293
31 December 2019	65,981	54,560	40,730	5,308	1,707	168,286
30 September 2020	71,653	57,408	45,447	6,059	1,677	182,245
Accumulated depreciation and impairment losses as at
31 December 2018		(11,200)	(13,846)	(2,355)		(27,401)
31 December 2019	(5,359)	(13,582)	(18,128)	(3,110)		(40,179)
30 September 2020	(9,752)	(15,453)	(21,269)	(3,646)		(50,120)
Carrying amount as at
31 December 2018	21,638	41,495	25,701	2,746	1,312	92,892
31 December 2019	60,622	40,978	22,602	2,198	1,707	128,108
30 September 2020	61,901	41,955	24,178	2,413	1,677	132,125

	Land
Right of use assets	30 September 2020	31 December 2019
Acquisition cost	40,728	40,433
Additions	4,964	295
Less: accumulated depreciation	(9,752)	(5,359)
Carrying amount	35,940	35,369

	Buildings
Right of use assets	30 September 2020	31 December 2019
Acquisition cost	975	975
Additions	10
Less: accumulated depreciation	(237)	133)
Carrying amount	748	842

		Non - current assets	Current assets
	Dairy cows	Other livestock	Mushroom seedbed	Crops	Total
Balance as at 31 December 2018	5,275	3,853	2,088	12,302	23,518
Direct purchases		32			32
Accumulated expenses		3,613	26,359	34,484	64,456
Transfer between groups	2,302	(2,302)
Direct sales	(470)	(246)			(716)
Harvest			(26,221)	(38,258)	(64,479)
Revaluation	(1,028)	(125)		5,281	(4,128)
Write-offs	(336)	(1,171)			(1,507)
Balance as at 31 December 2019	5,743	3,654	2,226	13,809	25,432
Direct purchases	5				5
Accumulated expenses		2,866	21,557	34,229	58,395
Transfer between groups	1,755	(1,755)
Direct sales	(389)	(163)			(552)
Harvest			(21,432)	(41,877)	(63,309)
Revaluation	(1,241)	(1,064)		6,485	4,467
Write-offs	(130)	(158)			(288)
Balance as at 30 September 2020	5,743	3,380	2,350	12,677	24,150

					End-			Raw
					consumer			mate-
	Wheat		Legumes Mushrooms	Milk	goods	Other	Forage	rials*	Total
Balance as at 31 December
2018	16,423	12,188	194	12			50,126		78,943
Purchases	2,721	2,115					96		4,932
Sales	(35,984)	(13,385)	(12,256)	(24,549)			(1,208)		(87,382)
Production	51,268	18,055	12,063	26,165			69,418		176,969
Consumed in preparation of
biological assets (livestock)	(2,200)	(3,725)		(1,268)			(56,306)		(63,499)
Consumed in preparation of
biological assets (crops and
mycelium seedbeds)	(5,901)	(7,575)							(13,476)
Inventory write-offs	(339)	(161)		(342)			(2,786)		(3,628)
Balance as at 31 December
2019	25,988	7,512	1	18			59,340		92,859
Purchases	1,749	4,247					110		6,106
Sales	(37,512)	(8,536)	(9,709)	(19,307)			(729)		(75,794)
Production	51,398	31,112	9,711	20,478			69,737		182,435
Consumed in preparation of
biological assets (livestock)	(1,031)	(2,104)		(827)			(42,822)		(46,784)
Consumed in preparation of
biological assets (crops and
mycelium seedbeds)	(5,016)	(9,634)							(14,650)
Inventory write-offs	(275)	(43)		(353)			(5,495)		(6,166)
Balance as at 30 September
2020	35,301	22,555	3	8			80,140		138,006

(All amounts are in EUR thousand, unless stated otherwise)

					End-			Raw
					consumer			mate-
	Wheat	Legumes	Mushrooms	Milk	goods	Other	Forage	rials	Total
Balance as at 31 December
2018	4,188	4,430	104	-	85	7,551	5,709	6,641	28,708
Purchases	875	992			2,943	3,722	6	12,318	20,856
Sales	(9,473)	(4,880)	(26,348)	(9,925)	(2,987)	(14,208)	(25)	(587)	(68,433)
Production	12,659	6,461	26,247	10,676	174	15,108	4,808	3,438	79,571
Consumed in preparation of biological assets (livestock)	(495)	(1,407)		(479)		(1,194)	(3,829)	(5,749)	(13,153)
Consumed in preparation of biological assets (crops and mycelium seedbeds)	(963)	(2,887)				(3,253)		(10,094)	(17,197)
Inventory write-offs	(86)	(57)		(135)	(30)	(845)	(206)	(35)	(1,394)
Balance as at 31 December 2019	6,705	2,652	3	137	185	6,881	6,463	5,932	28,958
Inventory acquired with
subsidiaries					234			818	1,052
Purchases	643	1,837			2,887	3,885	11	10,019	19,282
Sales	(9,041)	(2,918)	(20,471)	(7,245)	(3,020)	(15,314)	(13)	(539)	(58,561)
Production	10,433	10,945	20,474	7,579	117	13,851	4,353	2,480	70,232
Consumed in preparation of biological assets (livestock)	(227)	(801)		(313)		(1,287)	(3,411)	(4,234)	(10,273)
Consumed in preparation of biological assets (crops and mycelium seedbed)	(1,021)	(3,682)				(2,575)		(7,757)	(15,035)
Inventory write-offs	(70)	(15)		(154)	(4)	(332)	(345)	(57)	(977)
Balance as at 30 September 2020	7,422	8,018	6	3	398	5,109	7,059	6,663	34,678

	As at 30 September 2020	As at 31 December 2019
Trade receivables	16,505	7,247
VAT receivable	777	639
Receivables from National Paying Agency	6,752	1,385
Accounts receivable from private individuals	72	43
Other receivables	368	1,173
Advance payments and deferred expenses	3,331	2,982
Less: loss allowance	(148)	(148)
Total trade accounts receivable, net	27,655	13,322
Non-current receivables, gross	1,945	5,975
Less: loss allowance	(299)	(299)
Total	29,301	18,998

	As at 50 September 2020 As at 31 December 2019
Borrowings from banks
Mushroom growing companies	486	1,970
FMCG companies	1,132
Agricultural entities	5,334	6,435
Parent company	3,000
Other borrowings
Creditors	755	3,489
Investment fund for purchased land	253	1,072
Green Bonds	18,744	18,523
Total	29,705	31,489
Less: amounts, payable within one year (according to agreements)	(5,044)	(10,819)
Total long-term borrowings	24,661	20,670

	As at 30 September 2020	As at 31 December 2019
Einancial liabilities to banks and bondholders
Within second year	4,369	997
Within third and fourth year	968	571
After fifth year and later	19,324	19,102
Total	24,661	20,670
The Group's short-term borrowings were the following:
	As at 30 September 2020	As at 31 December 2019
Borrowings from banks
Mushroom growing companies	2,400	2,400
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	C

	As at 30 September 2020	As at 31 December 2019
Lease liabilities
Lease liabilities related to right-of-use assets*	35,426	34,960
Lease liabilities related to other assets**	7,708	8,245
Total	43,134	43,205
Less: amounts payable within one year
Lease liabilities related to right-of-use assets*	1,152	4,113
Lease liabilities related to other assets**	1,087	2,942
Total	2.239	7,054
Total long-term leases	40,895	36.150
* Lease liabilities accounted as operational lease before adoption of IFRS 16.

a) Harvest of agricultural produce	9-month period ended 30 September 2020	9-month period ended 30 September 2019
Total cultivated land, ha	39,637	38,564
Wheat	11,896	11,503
Legumes	9,035	8,039
Other cash crops	9,664	9,129
Forage Crops	8,168	8,984
Fallow	875	910
Average harvest yield, t/ha
Wheat	4,13	4,20
Legumes	2,73	1,69
Other cash crops
Forage Crops
Total fair value of harvest, EUR'000	41,877	36,065
Wheat	10,573	12,674
Legumes	9,053	4,867
Other cash crops	16,430	12,538
Forage Crops	5,821	5,986
Total production cost of harvest, EUR'000	33,942	26,204
Wheat	10,224	10,636
Legumes	7,905	6,672
Other cash crops	9,993	8,896
Forage Crops	5,821	5,986
Total gain (loss) on revaluation of biological assets, EUR'000*	7,935	3,875
Gain (loss) on revaluation of biological assets recognized in previous periods, EUR'000*	1,450
Gain (loss) on revaluation of biological assets (crops) recognized in reporting period. FUR'000	6,485	3,875

b) Sales of agricultural produce	9-month period ended 30 September 2020	9-month period ended 30 September 2019
Total revenue of sold agricultural produce, EUR'000	27,898	16.448
Total cost of sold agricultural produce*, EUR'000	28,812	17,727
Total inventory write-offs, EUR'000	(977)	(732)
Result of sales of agricultural produce, EUR'000	(1,892)	(2.011)

c) Agricultural subsidies	9-month period ended 30 September 2020	9-month period ended 30 September 2019
Direct subsidies, EUR'000	3,522	3,150
Organic farming subsidies, EUR'000	2,052	2,124
Total subsidies, EUR'000	5,574	5,274
Gross profit of crop growing segment per period,
EUR'000 (a+b+c)	10,167	7,138
Depreciation included in the harvest of agricultural produce, EUR'000	3,199	3,207

(All amounts are in EUR thousand, unless stated otherwise)

DAIRY SEGMENT	9-month period ended 30	9-month period ended
	September 2020	30 September 2019
Total tonnage sold, tons	19,828	19,144
Non-organic milk, tons	1,408	5,689
Organic milk, tons	17,899	12,909
Cattle, tons	521	546
Total revenues of dairy segment, EUR'000	8,177	7,634
Non-organic milk, EUR'000	461	1,831
Organic milk, EUR'000	7,165	5,236
Cattle, EUR'000	551	567
Total cost of dairy segment, EUR'000	7,796	7,641
Milk, EUR'000	7,245	7,074
Cattle, EUR'000	551	567
Revaluation of biological assets, EUR'000	(2,305)	(2,311)
Total subsidies, EUR'000	1,968	1,668
Gross profit of dairy segment, EUR'000	43	(650)
Depreciation included in cost of dairy segment sales, EUR'000	380	402

MUSHROOM SEGMENT	9-month period ended 30 September 2020	9-month period ended 30 September 2019
Total tonnage sold, tons	9,652	9,013
Non-organic mushrooms, tons	8,922	8,356
Organic mushrooms, tons	729	657
Total revenues from mushroom sales, EUR'000	21,536	19,276
Non-organic mushrooms, EUR 000	19,269	17,307
Organic mushrooms, EUR'000	2,267	1,969
Total cost of mushrooms sold, EUR'000	20,301	17,865
Non-organic mushrooms, EUR'000	18,967	16,491
Organic mushrooms, EUR'000	1,334	1,374
Total revenues from sales of mushroom seedbed, EUR'000	1,399	1,866
Total cost from sales of mushroom seedbed, EUR '000	1,256	1,768
Gross profit of mushroom growing segment, EUR'000	1,379	1,508
Depreciation included in cost of mushroom sales, EUR'000	1,176	1,258

END-CONSUMER PACKAGED GOODS	9-month period ended 30 September 2020	9-month period ended 30 September 2019
Total revenue from end-consumer packaged goods sales, EUR'000	3,368	1,832
Total cost of sales of end-consumer packaged goods, EUR'000	3,079	1,826
Gross profit of sales of end-consumer packaged goods, EUR'000	290	0
Depreciation included in cost of sales of end-consumer packaged aoods. EUR 000	300

11. Operating expenses

Operating expenses breakdown by type of expenses was the following:

	9-month period ended 30 September
	2020	2019
Payroll expenses	2,557	2,574
Social security expenses	851	798
Share based payments amortization	185	149
Fines and late payments	ടി	187
Depreciation of property, plant and equipment	573	519
Consultations and business plan preparations	177	248
Insurance and tax expense	627	509
Selling expenses	521	414
Fuel costs	130	156
Real estate registration and notaries	118	72
Rent and utilities	295	265
Transportation costs	195	208
Office administration	409	276
Other expenses	573	456
Total	7,262	6,831

In April 2019 the Company approved Employee Option Plan thus Share-Based Payments expenses were recognized. It should be noted that respective expenses are equity-settled and are recognized evenly per 3-year vesting period.

12. Other income

Other income breakdown by type was the following:

9-month period ended 30 September
2020	2019
26	80
	ന
245	332
50	25
32	ਰਤੋ
353	533

13. Financial expenses

Financial expenses breakdown by type was the following:

	9-month period ended 30 September
	2020	2019
Bank interest expenses	1,148	1,350
Bond interest expenses	1,122
Leasing and other financial expenses	434	509
Interest expenses (IFRS 16)	1,726	1,011
Currency exchange differences	19	16
Other financial expenses	62	ರಿ ನ
Total	4,530	2,981

14. Business combinations

On 14 February 2020 Group companies Baltic Champs UAB and AUGA Luganta UAB together with other shareholders of Grybai LT, KB capitalised loans provided to Grybai LT, KB which resulted in an increase in share capital of Grybai LT, KB and a change in the Group's interest in the company. As a result, the Group's share in Grybai LT, KB increased from 22% to 61 %. On 28 May 2020 Group companies Agromilk, KB, Juodmargelis, KB and Sventosios pievos, KB has bought-out the rest of minority shareholders and with this transaction the Group took over the full control of Grybai LT, KB owns production plant that produces endconsumer goods.

Fair value estimation of Grybai LT, KB is as follows:

Business combination	Grybai LT, KB Fair value as at 31 May 2020
Non-current assets
PPE	4,617
Current assets
Inventory	1,011
Trade receivables and other current assets	249
Cash and cash equivalents	2
Long term liabilities
Financial liabilities	(1,287)
Borrowings from AUGA group companies	(3,525)
Deferred tax liability
Short term liabilities
Other financial liabilities	(182)
Trade payables and other current liabilities	(485)
Net assets at acquisition date	399
Acquired share capital, %	100.00
Total value of the acquired investment	399
Cash paid for shares	1,504
Debt capitalisation	1,653
Total purchase consideration	3,157
Goodwill	2,758

Before the take-over of full control, Grybai LT, KB provided manufacturing services to the Group and produced end-consumer goods under Auga brand and other brands. The Group has acquired Grybai LT, KB in order to expand its production capacity of endconsumer goods, have full control over manufacturing processes and improve these processes.

Outflow of cash to acquire Grybai LT, KB, net of cash acquired:

Purchase consideration settled in cash	.504
Less: cash and cash equivalents acquired
Net cash outflow on acquisition	1.502

The fair value and gross amount of acquired trade receivables is EUR 249 thousand. None is expected to be uncollectible.

The acquired entity is included in the consolidated financial statements of the Group as of 1 June 2020. The acquired entity contributed to consolidated revenue by EUR 248 thousand in the period from 1 June 2020 to 30 September 2020.

15. Material transactions with related parties

On 3 October 2018 AUGA group, AB and Battic Champs Group, UAB (holding 55.04 per cent of shares in AUGA group, AB) signed Agreement on extension of up to 4 million EUR loan was provided with no collateral, there were no up front or similar fees, and with fixed interest rate that meets market conditions. The loan was repaid as at 19 June 2020.

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