AUGA group

Earnings Release • Mar 1, 2019

PRESENTING

Linas BulzgysBoard Member, CEO

Martynas RepečkaCFO

CROP GROWINGSEGMENT

CHALLENGING 2017/2018 SEASON

• • Extreme climatic conditions in large areas of Europe, including Lithuania: heavy rains in autumn 2017 followed by drought in summer 2018
• • Due to acquisitions cash crop area increased by 50% to 27 thous. ha in the season 2017/2018, vs.18 thous. ha in 2016/2017
• •Rainy 2017 resulted in significantly larger areas seeded with summer crops: 80% in 2018 vs. 56% in 2017
• • Due to specifics of organic farming crop rotation and historically high profitability, about 49% (10.7 thous. Ha) of total summer crops area was seeded with the legumes such as peas and beans
• •Drought in summer 2018 had a negative impact on most crop yields
• • However legumes were effected particularly negatively by drought which led to significant negative effect on the bottom line of AUGA group
• • Changes in yields of other cash crops in the season of 2017/2018 compared to the season of 2016/2017 were mixed. For instance, the yields of sugar beets, soya, corn were higher, while rapeseed, oats, rye and other were lower.

DROUGHT IMPACT ON MAIN CASH CROP YIELDS

NOTE: The data of LT organic farmers in 2018 has not yet been published.SOURCE: Lithuanian Statistics Department, data of the survey of the activities of Lithuanian agricultural producers included in the Farm Accountancy Data Network (FADN), the Group's data.

FAIRVALUE OF CASH CROPS

Av ic f 1 f c to er ag e p r e o nn e o ro p, l im in in le E U R t ts e a g sa s co s ,	2 0 1 / 2 0 1 8 7	2 0 1 6 / 2 0 1 7	Co is 2 0 1 7 / 2 0 1 8 i h t m p ar on w 2 0 1 6 / 2 0 1 7, %
he W t a	2 9 5	2 5 4	2 %
Le g um es	3 1 7	3 7 4	-1 %
he h O t ca s cr op s r	2 2 1	2 3 6	-6 %

COSTS AND REVALUATION RESULTS

Co 1 ha l iv d la d, E U R t t te s p er c u a n	2 0 1 7 / 2 0 1 8 *	2 0 1 6 / 2 0 1 7	Co is 2 0 1 7 / 2 0 1 8 * i h t m p ar on w / 2 0 1 6 2 0 1 7, %
he W t a	8 1 1	7 6 2	6 %
Le g um es	6 7 1	7 5 9	-1 2 %
O he h t r ca s cr op s	8 8 6	1 0 1 9	-1 3 %

G in ( lo ) lu io f a ic l l t tu a ss on r ev a a n o g r u ra du in f ha E U R / ha t t t, p ro ce a p o o rv es	/ * 2 0 1 7 2 0 1 8	/ 2 0 1 6 2 0 1 7	Co is 2 0 / 2 0 8 * i h 1 7 1 t m p ar on w / / ha 2 0 1 6 2 0 1 7, E U R
he W t a	-7 8	2 8 1	-3 9 5
Le g um es	0 -1 5	6 4 7	-6 2 6
O he h t r ca s cr op s	2 4 3	1 5 6	8 7

* Costs per 1 ha of cultivated land, eliminating one-off costs related to the proper preparation of abandoned land taken over in the season of 2016/2017 (in total EUR 0.62 million in wheat, EUR 1.27 million in legumes and EUR 0.9 million in other cash crops).

COSTS OFFORAGE CROPS

	/ 2 0 1 7 2 0 1 8	/ 2 0 1 6 2 0 1 7	is / 8 i h Co 2 0 1 7 2 0 1 t m p ar on w 2 0 6 / 2 0 % 1 1 7,
Co 1 ha l iv d la d, E U R t t te s p er c u a n	* 6 2 1	5 7 7	8 %
ie l d, / ha Av to er ag e y nn e	9 4.	6. 1	-2 0 %

* Costs per 1 ha of cultivated land, eliminating one-off costs related to the proper preparation of abandoned land taken over in the season of 2016/2017 (in total EUR 0.20 million in forage crops).

GOOD POTENCIAL FOR 2018/2019 SEASON

10

IMPROVED PRICING, INCREASE IN ORGANIC SHARE

12^{2017 2018} Var. %Total volume of mushrooms sold, tons 12,018 12,147 1%Total revenues from mushroom sales, EUR'000 21,543 23,875 11%Total cost of mushrooms sold, EUR'000 20,756 22,331 ⁸ %Revenues from sales of mushroom seedbed, EUR'000 2,893 2,581 -11%Cost of sales of mushroom seedbed, EUR'000 2,748 2,400 -13%Gross profit of mushroom growing segment, EUR'000 ⁹²⁸ 1,725 85% 6,6%10,8%12M 2017 12M 20181 727 1 890 2 933 2 943 1 500 2 000 2 500 3 000 3 50012M 2017 12M 2018Mushrooms average selling price, EUR/tonNon-organic mushroomsOrganic mushrooms

Share of organic mushrooms in revenue

DEVELOPING ORGANIC MILK SALES

Share of milk sold at organic prices in revenue

END-CONSUMERPACKAGED GOODS

END-CONSUMER SEGMENT WAS GROWING

OPERATING EXPENSES

OPEX(WITHOUT ONE-OFF EFFECTS)

One-off eliminations:

2018

a) related to termination of Arginta Engeneering UAB purchase agreement (EUR 715 thousand);

b) reversal of impairment of Karakash agro OOO and Karakash OOO property, plant and equipment (EUR (1,828) thousand);

CAPITAL EXPENDITURES

CAPEXDURING 2018 AND PLANS FOR 2019

EUR 11 million invested during 2018: EUR 8.0 million to constructions and machinery, EUR 1.4 million to agriculture land, other purposes EUR 1.6 million.

EUR 2 million limit on CAPEX for the year 2019 is set by the main creditors (banks).

Key CAPEX projects for 1HY of 2019:

• • EUR 0.9 million for Organic combined feedstock plant development project in subsidiary AUGA Grūduva, UAB Šakiai region. Construction started beginning of 2019, completion planned June 2019. Projected annual output: up to 50.000 tones of combined feed. Projected annual output fully covers AUGA group internal needs and allows to start external export sales to EU and US markets.
• • EUR 0.2 million for animal welfare improvement in ³ major dairy farms of AUGA group. Special matraces for dairy cows will be installed.
• • EUR 0.6 million for additional machinery and equipment for crop growing segment (particularly for sugar beet cultivation and handling of organic fertilizers).
• • EUR0.2 million related to biogas conversion and purification further development.
• • EUR0.1 million for other minor CAPEX.

Thank you!

Find out more at www.auga.lt