augaGroup

AUGA GROUP, AB

Consolidated Interim

Financial Statements

for 3 Months Period

Ending 31 March 2021

(Unaudited)

AUGA GROUP, AB
Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR 3 MONTHS PERIOD ENDING 31 MARCH 2021
(All amounts are in EUR thousand, unless stated otherwise)

I. GENERAL INFORMATION ... 2
II. MANAGEMENT REPORT ... 4
III. FINANCIAL STATEMENTS ... 10
Consolidated balance sheet ... 10
Consolidated income statement ... 11
Consolidated statement of changes in equity ... 12
Consolidated statement of cash flows ... 13
IV. EXPLANATORY NOTES ... 14
1. Basis of the preparation ... 14
2. Share capital and reserves ... 15
3. The structure of the Group ... 16
4. Property, plant and equipment ... 20
5. Biological assets ... 21
6. Inventory ... 21
7. Receivables and advance payments ... 22
8. Financial liabilities ... 23
9. Leases ... 24
10. Results of business segments ... 24
11. Operating expenses ... 26
12. Other income ... 26
13. Financial expenses ... 26
14. Subsequent events January – May 2021 ... 27
V. CONFIRMATION OF RESPONSIBLE PERSONS ... 27

Y Y Y
Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

au
ga

I. GENERAL INFORMATION

1.1. Accounting period covered by the report

Consolidated interim report was prepared for the 3 months period ended 31 March 2021.

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 head office:	Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
Telephone:	+370 5 233 53 40
Fax:	+370 5 233 53 45
E-mail address:	[email protected]
Website:	www.auga.lt
Legal entity form:	Joint stock company
Place and date of registration:	25 June 2003, Vilnius
Register code:	126264360
Registrant of the Register of Legal entities:	VJ Registrų centras

1.3. Main lines of business of the Group

Operations area:	Organic agriculture
Main operating segments:	Grain growing and sale, milk production and sale, mushroom growing and sale, fast moving consumer goods production and sale.

1.4. The structure of the Group

As of 31 March 2021, the consolidated Group (hereinafter the Group) consists of the Company and 137 subsidiaries (31 December 2020: 137 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 FMJ 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:

Reporting period	Price, EUR					Total turnover
	Average	Open	High	Low	Last	Units	EUR, million
2021 I quarter	0.441	0.444	0.452	0.426	0.440	1,674,332	0.738

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

AUGA GROUP, AB

Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR 3 MONTHS PERIOD ENDING 31 MARCH 2021

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

au ga

AUGA group, AB shares volume, share price and OMX Baltic Benchmark index variance for the period of 1 January 2019 to 31 March 2021.

Source: NASDAQ Vilnius stock exchange

1.7. Information on non-financial reporting

The Company does not prepare interim non-financial reporting information. Annual Sustainability report of the Company for the year 2020 is provided in the Group's consolidated annual report for the year ending 31 December 2020.

1.8. Significant post balance sheet events

Post balance sheet events are disclosed in the consolidated financial statements of the Group for the 3 months period ending 31 March 2021. See financial statements' note 14 for more details.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

II. MANAGEMENT REPORT

2.1. Overall results

AUGA group, AB and its subsidiaries demonstrated strong financial results, improving both revenue and profitability.

The aggregate sales of AUGA group AB amounted to EUR 19.48 million in the first quarter of 2021, representing a 14% increase on the same period last year, when aggregate sales were EUR 17.04 million.

During the first 3 months of 2021, the gross profit of the Group amounted to EUR 4.51 million. This marks a 21% rise on the year's equivalent period before when aggregate gross profit was EUR 3.74 million. In 2021, the Group earned a EUR 0.67 million net profit, compared to EUR 0.18 million a year earlier.

In 2021, the Group's EBITDA amounted to EUR 5.74 million, representing a 16% uplift compared to the previous year, when EBITDA was EUR 4.95 million.

Main financial results, EUR million	3 months of 2021	3 months of 2020	3 months of 2019
Revenues	19.48	17.04	14.89
Gross profit (loss)	4.51	3.74	2.95
Gross profit margin	23%	22%	20%
Net profit (loss)	0.67	0.18	0.17
Net profit margin	3%	1%	1%
EBITDA	5.74	4.95	4.58
EBITDA margin	29%	29%	31%
Variance 2021/2020, %	Variance 2020/2019, %
---	---
+14%	+14%
+21%	+27%
+6%	+11%
+280%	+6%
+232%	-10%
+16%	+8%
+1%	-6%

2.2. Crop growing segment overview

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

Harvest in the season of 2020/2021

The total cultivated land area by the Group amounts to 39.2 thousand hectares (ha) in the 2020/2021 season and is slightly less than the cultivated area in the 2019/2020 season. In the 2020/2021 season, 31.7 thousand ha is seeded with cash crops (30.6 thousand in the 2019/2020 season) out of which 10.0 thousand ha is dedicated to wheat, 7.9 thousand ha to legumes and 13.8 thousand ha to other cash crops. The majority – 9.6 thousand ha out of total 10.0 thousand ha – of wheat was winter wheat, which is a similar proportion to the season of 2019/2020 as winter crops usually have higher yield potential compared to summer alternatives. Forage crops comprises 6.7 thousand ha in the 2020/2021 season compared to 8.2 thousand ha in the 2019/2020 season.

At the end of each quarter the Group evaluates the fair value of crops which have not yet been harvested. The Group estimated the total fair value of crops as of 31 March 2021 using following formula and assumptions:

Fair value of the crop = Costs incurred + (Cultivated area in ha * forecasted average yield as tonnes per ha * forecasted grain price per tonne – cultivated area in ha * forecasted total cost per ha) * T * (1 - x), where:

Cost incurred is cost actually incurred for particular crop during the season of 2020/2021.
Cultivated area in ha is the area of particular crop seeded and expected to be harvested.
Forecasted average yield in tonnes per ha is the expected yield for a particular crop based on the previous season's results.
Forecasted grain price per tonne – average sales prices in contracts for the 2020/2021 season harvest. If no contracts are signed, the price for the 2019/2020 season harvest is used in the estimation adjusted according to the developments in the market.
Forecasted total cost per ha. The current level of accumulated costs adjusted by average historical cost levels of 2019 - 2020 were used for fair value estimation. It is expected that costs will remain at a similar level as that recorded in the previous periods.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

T is the portion of time that has already passed from sowing date until the forecasted harvest date expressed as a percentage. As of 31 March 2021, the average completion percentage estimated was around 66% depending on the crop.
X is an adjustment parameter for possible unexpected negative effects to the harvest. 20% was used in fair value estimations as of 31 March 2021.

The formula discussed above will be used to estimate fair value of cash crops (winter and summer crops) for coming quarters as well until the actual harvest will be completed. In each quarterly estimation forecasted parameters will be adjusted if needed or actual data if already available will be used.

It should be noted that the fair value of forage crop even at its point of harvest is measured at production cost incurred on forage crop. In other words, forage crop production cost is used as a measure of the fair value of that forage crop since there is no active market for forage crops and there is no reliable data to calculate market price of the forage crops. Due to this the net result on revaluation of forage crops is equal to zero.

Weather conditions in the fall of 2020 were good for sowing and other preparatory land works for the season of 2020/2021. As a result, seeding and land preparation works for winter cash crops to be harvested in the season of 2020/2021 were completed on time. In 2020, the Group sowed around 15.99 thousand ha of cash crops – winter wheat, winter rye, winter rapeseed and seed clover - which will be harvested in 2021. For comparison, in the 2019/2020 season around 14.5 thousand ha of winter cash crops were sown in the autumn of 2019.

As of 31 March 2021 summer cash crops' seeding was still in process and no significant biological transformation was present as of 31 March 2021. Therefore, the production costs of these crops were used as a fair value indicator.

Due to the increased area of winter crops and rising market prices, fair value of crops has increased compared to 2020. As of 31 March 2021, the Group recognized a EUR 3.61 million gain on the initial recognition of biological assets at fair value for winter crops and seed clover. It should be noted that as of 31 December 2020 Group recognised gain of EUR 2.02 million on the initial recognition of biological assets at fair value for the 2020/2021 season's crops. Thus, gain on the initial recognition of biological assets at fair value accounted for in the first quarter of 2021 amounts to EUR 1.59 million.

Crops value, EUR million	3 months of 2021	3 months of 2020	3 months of 2019	Variance 2021/2020, %	Variance 2020/2019, %
Gain (loss) on revaluation of biological assets at fair value recognised in previous period	2.02	1.45	-	+39%	n/a
Gain (loss) on revaluation of biological assets at fair value recognised in current period	1.59	1.27	1.34	+25%	-5%
Total gain (loss) on revaluation of biological assets at fair value	3.61	2.72	1.34	+33%	+103%

Crop growing segment sales results

Total revenue generated from sales in the crop growing segment amounted to EUR 7.53 million in 2021. This is a 41% rise in revenue compared to 2020, when sales revenue was EUR 5.36 million.

As of 31 March 2021, around 99% of 2019/2020 season harvest was contracted out of which 93% were sold and delivered to the clients. Group's sales during the 3 months of 2021 increased due to larger quantities sold as the harvest quantities are increasing year-on-year.

Crop growing segment results, EUR million	3 months of 2021	3 months of 2020	3 months of 2019	Variance 2021/2020, %	Variance 2020/2019, %
Sales revenue	7.53	5.36	5.01	+41%	+7%
Cost of sales	8.00	5.32	5.01	+50%	+6%
Inventory write-offs	0.08	0.24	0.25	-68%	-2%
Result of sales of agricultural produce	(0.54)	(0.20)	(0.25)	-172%	+20%

The crop growing segment's sales cost for the 3 months of 2021 amounted to EUR 8.00 million versus EUR 5.32 million in 2020. The increase in cost of sales in the first 3 months of 2021 were impacted by one-off event – additional drying and cleaning cost of clover seeds (EUR 0.42 million). If respective one-off costs were eliminated, sales revenue increased in the same pace as sales cost. Total agricultural produce inventory write-offs and impairment during the 3 months of 2021 amounted to EUR 0.08 million compared to EUR 0.24 million during the 3 months of 2020. Additional cost incurred for seeds production contributed to the increased loss of the agricultural produce sales which amounted to EUR 0.54 million for the first 3 months of 2021. If one-off cost related with seeds production was eliminated, the result of agricultural produce sales improved by EUR 0.07 million compared to previous period.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

Agricultural subsidies and gross profit of the crop growing segment

The total amount of agricultural subsidies accrued for 3 months of 2021 was EUR 2.38 million compared to EUR 1.89 million during the same period in 2020. Accrued subsidies amount is based on preliminary calculations according to available subsidising programmes regulations for 2021. Increase in subsidies amount in 2021 is mainly related with increased amount of organic subsidies. Due to changes in subsidizing programme the Group will be entitled to receive organic subsidies for all organic crops declared while in previous year the Group received organic subsidies only for part of its crops.

In 2021, gross profit from the crop growing segment, encompassing the results of agricultural produce sales, gain (loss) on changes in fair value of biological assets and agricultural subsidies amounted to EUR 3.43 million. This demonstrated a 16% uplift compared to a gross profit of EUR 2.96 million in 2020. The gain on the initial recognition of biological assets at fair value recognized in 2021 increased by 25% comparing to previous period.

Gross profit of crop growing segment, EUR million	3 months of 2021	3 months of 2020	3 months of 2019	Variance 2021/2020, %	Variance 2020/2019, %
Gain (loss) on revaluation of biological assets at fair value recognised in reporting period	1.59	1.27	1.34	+25%	-5%
Result of sales of agricultural produce	(0.54)	(0.20)	(0.25)	-172%	+20%
Subsidies	2.38	1.89	1.76	+26%	+8%
Gross profit	3.43	2.96	2.85	+16%	+4%

2.3. Dairy segment overview

Milk segment results were lower than expected as the desired impact of changes in feeds structure was not achieved in the first quarter of 2021. However, the Group will continue to pursue its planned agenda to increase efficiency and achieve better results in this segment. As planned, the Group is increasing the number of cows it has and plans to reach 3.6 thousand in 2021.

Total sales revenue of the dairy segment amounted to EUR 3.28 million in 2021. This compares to total sales of EUR 3.49 million in 2020 and represents a 6% decrease. The decreased volume of milk sold, is a result of decreased milk yields per cow. The total quantity of milk sold decreased by 5% - from 6.55 thousand tonnes (or 21.77 kg per cow per day) in the 3 months of 2020 to 6.19 thousand tonnes (or 21.39 kg per cow per day) in the 3 months of 2021.

The Group's organic milk price remained similar to previous year and in the 3 months of 2021 was EUR 407 per tonne. In the 3 months of 2021 the average price of milk sold was around EUR 406 per tonne or 2.2% higher comparing to the same period last year when it was EUR 397 per tonne. Average milk price increased due to the larger share of organic milk sold.

The share of milk sold at organic production prices reached 98% in the 3 months of 2021 compared to 86% during the same period in 2020. As can be seen from the graph below, the share of milk sold at organic prices has been steadily growing from the beginning of 2019 and there have been no significant fluctuations in the share of organic milk sold.

The dairy segment's cost of sales amounted to EUR 3.26 million during the 3 months of 2021 compared to EUR 3.19 million during the same period last year (2% increase). The cost of milk increased due to changes in feeds structure.

During the 3 months of 2021, a loss of EUR 0.55 million was incurred on the revaluation of biological assets (animal herd). In comparison, a EUR 0.70 million loss was incurred during the same period a year earlier. The Group is seeking to increase milk yields per cow, which would result in increased production quantities and reduced costs. In order to achieve higher milk yields and the quality of cow herd in general, aged and not productive cows are substituted with younger heifers. Write-offs of aged cows increased loss from revaluation of biological assets. The substitution began in 2020 and will continue throughout 2021.

Despite the reduced milk output due to lower milk yields and increase in milk production cost, gross result of the dairy segment improved compared to the previous year. Lower biological assets revaluation cost and increased amount of organic subsidies for all declared land plot improved dairy segment results. In the 3-month period of 2021, gross profit for the dairy segment amounted to EUR 0.21 million, compared to a EUR 0.09 million gross profit in 2020.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

	3 months of 2021	3 months of 2020	3 months of 2019
Total quantity of products sold, t	6,565	6,963	6,413
Milk, t	6,189	6,549	6,219
Dairy commodities, t	190	233	29
Cattle, t	186	181	194
Revenue, EUR million	3.28	3.49	2.74
Milk, EUR million	2.51	2.60	2.41
Dairy commodities, EUR million	0.58	0.72	0.12
Cattle, EUR million	0.19	0.18	0.21
Cost of sales, EUR million	3.26	3.19	2.76
Milk, EUR million	2.51	2.31	2.44
Dairy commodities, EUR million	0.56	0.70	0.12
Cattle, EUR million	0.19	0.18	0.21
Revaluation of biological assets, EUR million	(0.55)	(0.70)	(0.76)
Subsidies, EUR million	0.73	0.50	0.56
Gross profit, EUR million	0.21	0.09	(0.23)
Variance 2021/2020, %	Variance 2020/2019, %
---	---
-5%	+5%
-5%	+5%
-19%	+698%
+3%	-7%
-6%	+28%
-3%	+8%
-19%	+484%
+9%	-14%
+2%	+16%
+8%	-5%
-21%	+499%
+9%	-14%
+22%	+8%
+48%	-11%
126%	n/a

2.4. Mushroom segment overview

The global pandemic had a tangible impact on mushroom segment. Although results in the first quarter of 2021 were lower than in equivalent period in 2020, the management evaluates the results positively as this segment remains affected by the COVID-19 pandemic at the beginning of 2021, while this impact did not yet exist in the first quarter of 2020. In addition, a greater focus on higher value-added products has led to improved profitability compared to recent quarters of 2020.

Overall, the sales in the mushroom growing segment remained similar to the previous year and amounted to EUR 7.26 million during the 3 months of 2021. In the equivalent period in 2020, sales in this segment were EUR 7.28 million. The revenue from mushroom sales grew by EUR 0.42 million while revenue from mushroom seedbed sales decreased by EUR 0.44 million.

During the 3 months of 2021, the share of organic mushrooms decreased and amounted to 6.3% of total mushrooms volume sold, while in previous year share of organic mushrooms was 7.9%.

In the 3 months of 2021, average non-organic and organic mushrooms sales price increased by around 10% compared to the same period in 2020. The average price of 1 tonne of mushrooms sold was 2,246 EUR/tonne in the 3 months of 2021 (2,043 EUR/tonne in the 3 months of 2020). The average mushroom price increased due to larger sales of packaged mushrooms.

The sales of seedbed in 2021 have decreased by 78% compared to the previous year. This reduction was due to the closed sales channel to Russia due to the COVID-19 pandemic.

The total cost of sales of the mushroom growing segment amounted to EUR 6.76 million in the 3 months of 2021 and was EUR 0.10 million higher compared to the same period in 2020 when it was EUR 6.66 million. The average cost of 1 tonne of mushrooms sold increased from 1,876 EUR/tonne to 2,103 EUR/tonne. Cost of mushrooms mainly increased due to higher sales of packaged mushrooms.

According to the Group's data, the gross profit of the segment for the 3-month period of 2021 amounted to EUR 0.50 million, demonstrating a 20% fall on the same period last year, when the gross profit of the segment was EUR 0.62 million. The decrease in gross profit is mainly related to market volatility and increased costs in the current environment caused by the global pandemic. In addition, it should be noted that first quarter of 2020 results were significantly better than in other quarters of 2020 as global pandemic started in March of 2020.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)
7

	3 months of 2021	3 months of 2020	3 months of 2019	Variance 2021/2020, %	Variance 2020/2019, %
Sold mushrooms, t	3,177	3,288	2,877	-3%	+14%
Average price (Eur/t)	2,246	2,043	2,075	+10%	-2%
Total revenue, EUR million	7.26	7.28	6.64	0%	+10%
Mushroom sales revenue, EUR million	7.14	6.72	5.97	+6%	+13%
Compost sales revenue, EUR million	0.12	0.56	0.67	-78%	-15%
Cost of sale, EUR million	6.76	6.66	6.35	+2%	+5%
Cost of mushrooms sold, EUR million	6.68	6.17	5.72	+8%	+8%
Cost of compost sold, EUR million	0.08	0.49	0.63	-83%	-22%
Gross profit, EUR million	0.50	0.62	0.29	-20%	+118%

2.5. Fast moving consumer goods (FMCG) segment

The segment is strategically important to the Group and it continues to demonstrate significant growth.

Total sales in the segment amounted to EUR 1.42 million in the first quarter of 2021. In the equivalent period last year, sales in the FMCG segment were EUR 0.91 million.

Cost of sales were EUR 1.04 million for the 3 months of 2021 compared to EUR 0.85 million for the same period in 2020.

Increasing business volumes have a positive impact on profitability. During the first 3 months of 2021, the FMCG segment’s gross profit jumped to EUR 0.38 million. During the same period in 2020, gross profit amounted to EUR 0.06 million.

FMCG segment results, EUR million	3 months of 2021	3 months of 2020	3 months of 2019	Variance 2021/2020, %	Variance 2020/2019, %
Sales revenue	1.42	0.91	0.51	+56%	+79%
Cost of goods sold	1.04	0.85	0.47	+23%	+82%
Gross profit	0.38	0.06	0.04	+545%	+36%

During the 3 months of 2021 the Group has exported its products to 28 countries compared to 20 countries in the same period in 2020. Due to expansion in foreign markets the share of local sales has decreased. Sales to the USA and Japan had the highest impact on sales growth in the FMCG segment in the 3 months of 2021 and constituted 30% of total sales while in the equivalent period in 2020 constituted 5%.

Preserved products, especially ready-to-eat organic soups, remain the main product group in the segment. The FMCG sales revenue structure for 2021 is depicted in the chart below.

Revenues structure from end-consumer goods 2021 3M,%

Preserved mushrooms, vegetables and soups
Packaged vegetables
Bottled milk and milk-shakes
Eggs
Other end-consumer products

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

2.6. Operating expenses

The Group's operating expenses during 2021 amounted to EUR 2.53 million compared to EUR 2.25 million in the same period last year. The increase is mostly related to the increased salaries, office administration and selling expenses. Additionally, operating expenses of Grybai LT, KB is represented in 2021, but not included in the comparative period as the respective entity was included in the consolidated financial statements as of 1 June 2020.

2.7. COVID-19 pandemic effect

In light of the COVID-19 pandemic's effects on the business environment, measures have been taken to address the most significant coronavirus-related risks throughout the Group's key business units, namely crop growing, dairy production, mushroom growing and fast-moving consumer goods (FMCG).

Additional measures have been taken to ensure the safety of the Group's employees and the continuation of its daily activities. With additional measures applied, all Group companies are operating at the required capacities.

At the market level, agricultural production companies stood out as some of the least affected by the crisis, given the nature of their produce and increased demand from households. However, prolonged restrictions eventually impact all businesses and especially mushroom segment was somewhat affected by pandemic caused changes in the market.

Crop growing

The Company's management did not see any significant changes in the crop market. If the pandemic continues and the Group would face a labour shortage due to high numbers of infected or quarantined persons this risk may be mitigated via temporary employment, as was successfully done in 2020.

Dairy

Milk production has been running at regular capacity and there were no problems with product demand. The management is not seeing at present nor does it forecast a decrease of demand in this segment. However, the risk of labour shortage remains, if the numbers of infected or quarantined persons were to rise dramatically. If this scenario occurs, the Group is ready to mitigate this risk with temporary employment, as was done in 2020.

Mushroom growing

The biggest threat in the mushroom growing segment is related to production, given the labour intensity of the production operations. Therefore, the Company has implemented various measures to ensure the safety of employees and to minimize contact among them. The Group could face a shortage of labour if the number of infected or quarantined persons were to increase dramatically. Labour shortages are successfully compensated with temporary employment from the outside and secondment from other companies of the Group.

In 2021, several business areas of the segment remain negatively affected by the pandemic due to instability in the market:

sales to wholesalers working with HoReCa decreased,
sales of mushroom seedbeds to Russia decreased,
market volatility increased which made it challenging to sell mushrooms at the best fresh mushroom price.

The Group is looking for new export markets for sales diversification and implements efficiency initiatives to reduce costs.

FMCG

The growing demand for long shelf-life packaged products (dairy products, soups, etc.) was observed across all markets. In terms of the associated risks in this segment, these are mainly related to possible interruptions in the supply chain of raw materials that the Group cannot produce in-house.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

III. FINANCIAL STATEMENTS

Consolidated balance sheet

| ASSETS | Notes | 31 March 2021
unaudited | 31 December 2020
audited |
| --- | --- | --- | --- |
| Non-current assets | | | |
| Property, plant and equipment | 4 | 97,426 | 97,009 |
| Right-of-use assets | 4 | 34,022 | 35,543 |
| Intangible assets | | 3,473 | 3,477 |
| Long term receivables at amortized cost | 7 | 446 | 446 |
| Investments accounted for using equity method | | 57 | 57 |
| Financial assets at fair value through profit or loss | | - | - |
| Deferred tax asset | | 1,359 | 1,359 |
| Biological assets | 5 | 10,092 | 9,699 |
| Total non-current assets | | 146,875 | 147,590 |
| Current assets | | | |
| Biological assets | 5 | 23,321 | 17,052 |
| Inventory | 6 | 23,404 | 30,435 |
| Trade receivables advance payments and other receivables | 7 | 19,903 | 16,084 |
| Cash and cash equivalents | | 2,582 | 2,541 |
| Total current assets | | 69,210 | 66,112 |
| TOTAL ASSETS | | 216,085 | 213,702 |
| EQUITY AND LIABILITIES | | | |
| Capital and reserves | | | |
| Share capital | 2 | 65,951 | 65,951 |
| Share premium | | 6,707 | 6,707 |
| Revaluation reserve | | 9,213 | 9,213 |
| Legal reserve | | 1,834 | 1,834 |
| Reserve to provide shares for employees | | 2,509 | 2,509 |
| Retained earnings / (accumulated deficit) | | 7,014 | 6,237 |
| Equity attributable to equity holders of the parent | | 93,228 | 92,450 |
| Non-controlling interest | | 355 | 366 |
| Total equity | | 93,583 | 92,816 |
| Non-current liabilities | | | |
| Borrowings | 8 | 46,475 | 40,494 |
| Obligations under lease | 9 | 33,880 | 33,682 |
| Deferred grant income | | 3,347 | 3,248 |
| Deferred tax liability | | 1,483 | 1,483 |
| Total non-current liabilities | | 85,185 | 78,907 |
| Current liabilities | | | |
| Current portion of non-current borrowings | 8 | 2,662 | 3,409 |
| Current portion of non-current obligations under lease | 9 | 5,891 | 7,556 |
| Current borrowings | 8 | 6,850 | 9,400 |
| Trade payables | | 16,322 | 16,335 |
| Other payables and current liabilities | | 5,593 | 5,279 |
| Total current liabilities | | 37,317 | 41,979 |
| Total liabilities | | 122,502 | 120,886 |
| TOTAL EQUITY AND LIABILITIES | | 216,085 | 213,702 |

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

Consolidated income statement

	Notes	3 months period ending 31 March
		2021 unaudited	2020 unaudited
Revenues	10	19,483	17,038
Cost of sales	10	(16,019)	(13,874)
Gain (loss) on initial recognition of a biological asset at fair value and from a change in fair value of a biological asset	5, 10	1,043	571
GROSS PROFIT		4,507	3,735
Operating expenses	11	(2,526)	(2,246)
Other income	12	121	126
OPERATING PROFIT		2,102	1,615
Finance cost	13	(1,435)	(1,439)
Share of net profit (loss) of associates accounted for using the equity method		-	-
PROFIT (LOSS) BEFORE INCOME TAX		668	176
Income tax expense		-	-
NET PROFIT / (LOSS) FOR THE PERIOD		668	176
ATTRIBUTABLE TO:
Equity holders of the Company		679	189
Non-controlling interest		(11)	(13)
		668	176
STATEMENT OF OTHER COMPREHENSIVE INCOME
NET PROFIT/ (LOSS) FOR THE PERIOD		668	176
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		668	176
ATTRIBUTABLE TO:
Equity holders of the Company		679	189
Non-controlling interest		(11)	(13)
		668	176

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)
11

Consolidated statement of changes in equity

	Share capital	Share premium	Revaluation 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 of 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	-	-	-	-	-	-	1,772	1,772	20	1,792
Share based payment expenses	-	-	-	-	-	-	247	247	-	247
Other comprehensive income
Revaluation of land, net of tax	-	-	725	-	-	-	-	725	-	725
Total comprehensive income	-	-	725	-	-	-	2,019	2,744	20	2,764
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 of 31 December 2020 (audited)	65,951	6,707	9,213	-	2,509	1,834	6,237	92,450	366	92,816
Comprehensive income
Net profit (loss) for the period	-	-	-	-			679	679	(11)	668
Share based payment expenses	-	-	-	-			98	98	-	98
Other comprehensive income
Revaluation of land (net of tax)	-	-	-	-
Total comprehensive income	-	-	-	-	-	-	777	777	(11)	766
Transactions with shareholders
Transfer to legal reserve	-	-	-	-	-	-	-	-	-	-
Transfer to reserve to provide shares for employees	-	-	-	-	-	-	-	-	-	-
Dividends granted by subsidiaries to the non-controlling interest	-	-	-	-	-	-	-	-	-	-
Total transactions with shareholders	-	-	-	-	-	-	-	-	-	-
Balance as of 31 March 2021 (unaudited)	65,951	6,707	9,213	-	2,509	1,834	7,014	93,228	355	93,583

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)
12

AUGA GROUP, AB

Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR 3 MONTHS PERIOD ENDING 31 MARCH 2021

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

aU a

Consolidated statement of cash flows

	Notes	3 months period ending 31 March
		2021 unaudited	2020 unaudited
Cash flows from /(to) operating activities
Net profit (loss) before income tax and non-controlling interest		668	176
Adjustments for non-cash expenses (income) items and other adjustments
Depreciation expenses (PP&E)	4	1,820	1,829
Depreciation expenses (ROU* assets)	4	1,522	1,444
Amortization expenses		3	4
Expenses of share-based payments	11	98	62
Write offs and impairment of PPE		-	-
(Gain) loss on sales of non-current assets		(12)	(12)
(Gain) loss on sale of subsidiaries		-	-
Loss allowance for receivables		-	-
Write-offs of inventory	5,6	303	223
Net finance cost	13	901	790
Net finance cost (IFRS 16)	13	528	564
Loss (gain) on changes in fair value of biological assets	5	(1,043)	(571)
Grants related to assets, recognized as income		(96)	(132)
Changes in working capital
(Increase) decrease in biological assets		(6,544)	(6,530)
(Increase) decrease in trade receivables and prepayments		(3,833)	(4,346)
(Increase) decrease in inventory		6,728	4,354
(Decrease) increase in trade and other payables		(771)	392
Cash flows from operating activities		272	(1,754)
Interest paid, netto		(527)	(416)
Net cash flows from /(to) operating activities		(255)	(2,170)
Cash flows from /(to) investing activities
Purchase of property, plant and equipment	4	(1,674)	(953)
Purchase of investments		-	-
Proceeds from sales of investment property, PPE		34	12
Proceeds from sales of investments		-	-
Grants related to assets		195	-
Other loans repaid		-	-
Other loans granted		15	-
Net cash flows from/(to) investing activities		(1,430)	(941)
Cash flows from /(to) financing activities
Bonds		-	-
Repayment of bank borrowings		(3,460)	(920)
Proceeds from borrowings		6,087	4,600
Proceeds (repayments) of other borrowings		-	(2,814)
Finance lease payments		(901)	(587)
Net cash flows from/(to) financing activities		1,726	279
Net (decrease) / increase in cash and cash equivalents		42	(2,381)
Cash and cash equivalents at the beginning of the period		2,541	3,732
Cash and cash equivalents at the end of the period		2,582	899

ROU assets – Right-of-use assets

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

IV. EXPLANATORY NOTES

Basis of the preparation

The accompanying interim financial information for the 3-month period ending 31 March 2021, has been prepared in accordance with IAS 34, ‘Interim financial reporting’. The accounting policies applied are consistent with those of the annual financial statements for the year ending 31 December 2020, as described in those annual financial statements. This financial information should be read in conjunction with the interim financial information for 3-month period ended 31 March 2020 and annual financial statements for the year ending 31 December 2020 which have been prepared in accordance with IFRS as adopted by the EU.

The presentation currency is euro (EUR). The financial statements are presented in thousands of euro, unless indicated otherwise. Financial statements for the 3-month period ending 31 March 2021 and 3-month period ending 31 March 2020 are not audited. Financial statements for the year ending 31 December 2020 are audited by the external auditor UAB PriceWaterhouseCoopers.

Critical accounting estimates and assumptions

The preparation of financial information in conformity with IAS 34 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial information, are disclosed below. Critical accounting estimates and assumptions remain the same as disclosed in the audited annual financial statements for period ending 31 December 2020.

IFRS 16, Leases

Based on IFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 January 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities as of 31 December 2020 was 6%. The incremental borrowing remained unchanged in 2021.

In applying IFRS 16, the Group has used the following practical expedients permitted by the standard:

the use of a single discount rate to a portfolio of leases with reasonably similar characteristics;
reliance on previous assessments on whether leases are onerous;
the accounting for operating leases with a remaining lease term of less than 12 months as short-term leases (which were recognized as expense on a straight-line basis);
the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application;
the use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

Revaluation of biological assets (crops)

The Group estimates the total fair value of crops using following formula and assumptions:

Cost incurred is cost actually incurred for particular crop during the season till the reporting date.
Cultivated area in ha is an area of particular crop seeded and expected to be harvested.
Forecasted average yield tonnes per ha.
Forecasted grain price per tonne. contracted average sales prices are used for fair value estimation.
Forecasted total cost per ha. Average historical cost levels are used for fair value estimation.
T is a time portion, spanning from the sowing date to the forecasted harvest date.
X is an adjustment parameter for possible unexpected negative effects to the harvest.

Revaluation of biological assets (livestock)

Due to the specifics of the agricultural market, fair value of milking cows cannot be determined by using comparable market prices method, as such biological assets in areas where the Group operates are not traded on active markets which could enable the use of market value. The Group values cows using the discounted cash flow method. The model uses projected revenues from milk sales over the remaining useful life of each animal using a forecasted milk price. Milk price forecast is the average milk price assumption of the following 3 years was. Current cow herd has an estimated working life of 1 to 3 years. At the end of the working period the cow is estimated to be sold for meat. The forecasted revenues are reduced with costs directly related to herd growing (feeds, medicines, employee salaries and other). The free cash-flow is discounted with post tax WACC.

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 for different groups of animals) and multiplying the price of 1 kg by the total weight of specific group of animals.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

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 on the days lapsed since the grant date till the reporting date. Each year the entity will revise the expense to reflect the best available estimate of the number 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 date of the share-based payment agreement between the Company and the receiver as all the terms and conditions are set in this agreement and there are no other arrangements 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 staff turnover data includes turnover 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 are signed with a special condition – that the receivers do not need to fulfill the service condition, but they will still need to wait 3 years vesting period before being 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 of 31 March 2021 was EUR 65,951 thousand (as of 31 December 2020: EUR 65,951 thousand). The share capital is divided into 227,416,252 ordinary shares (2020: 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.

Share premium at the end of 31 March 2021 amounted to EUR 6,707 thousand (31 December 2020: EUR 6,707 thousand).

Shareholders

Total number of shareholders on 31 March 2021 was 1,922 and on 31 December 2020 it was 1,866.

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

Entity / person	31 March 2021		31 December 2020
	Number of shares	% owned	Number of shares	% owned
Baltic Champs Group UAB (identification code: 145798333; address: Poviliškiai v., Šiauliai 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

No shareholder has special voting rights.

Information on the shares of the Company held by the members of the Board and the top executives as of 31 March 2021:

Name, Surname	Position	Owned shares in the Company, units	Owned shares in the Company, %
Kęstutis Juščius*	CEO	1,392	0.0006%
Tomas Krakauskas**	Member of the Board	119,000	0.052%
Mindaugas Ambrasas	CFO	6,881	0.003%

Kęstutis Juščius, 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.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

AUGA GROUP, AB

Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR 3 MONTHS PERIOD ENDING 31 MARCH 2021

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

au ga

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 regulatory legislation 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 legal reserve of the Company equalled to EUR 1,834 thousand as of 31 March 2021 (EUR 1,834 thousand as of 31 December 2020).

Revaluation reserve comprises revaluation of land portfolio owned by the Group. Land portfolio valuation is performed by independent valuator. The valuation for reporting period was performed in 2020. Revaluation reserve as of 31 March 2021 amounted to EUR 9,213 thousand (EUR 9,213 thousand as of 31 December 2020).

In 2018 the Company formed a reserve to grant shares for employees. Transfers to this reserve is performed annually when the board approves issue of additional shares options. Reserve to grant shares for employees as of 31 March 2021 amounted to EUR 2,509 thousand (EUR 2,509 thousand as of 31 December 2020).

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 Group. After 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 of 31 December 2019	5,600,000	1,624
Shares allocated to employees based on option agreements	4,765,690	1,382
Unallocated shares	3,886,034	1,127
Total reserve as of 31 December 2020	8,651,724	2,509
Shares allocated to employees based on option agreements	4,765,690	1,382
Unallocated shares	3,886,034	1,127
Total reserve as of 31 March 2021	8,651,724	2,509

3. The structure of the Group

As of 31 March 2021, the Group consisted of the Company and 137 subsidiaries (31 December 2020: 137). Detailed list of all subsidiaries in 2021 and 2020 is provided below.

No.	Name of subsidiary	Legal form	Legal entity code	Registered office	Profile	Group ownership interest, %
						31/03/21	31/12/20
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, Konstitucijos av. 21C	**G	100,00%	100,00%
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%
5.	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	100,00%	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	**F	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 Žemės fondas	*1	300558595	Vilniaus mun., Vilnius, Konstitucijos av. 21C	**E	100,00%	100,00%
12.	Žemės vystymo fondas 6 UAB	*4	300589719	Vilniaus mun., Vilnius, Smolensko st. 10	**E	100,00%	100,00%
13.	Žemės vystymo fondas 9 UAB	*4	300547638	Jonavos region, Bukonių v., Lankesos st. 2	**E	100,00%	100,00%
14.	Žemės vystymo fondas 10 UAB	*4	301522723	Jonavos region, Bukonių v., Lankesos st. 2	**E	100,00%	100,00%
15.	Žemės vystymo fondas 20 UAB	*4	300887726	Jonavos region, Bukonių v., Lankesos st. 2	**B	100,00%	100,00%
16.	AUGA Grūduva UAB	*4	174401546	Šakių 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%

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

AUGA GROUP, AB

Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR 3 MONTHS PERIOD ENDING 31 MARCH 2021

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

No.	Name of subsidiary	Legal form	Legal entity code	Registered office	Profile	Group ownership interest, %
						31/03/21	31/12/20
21.	Agricultural entity AUGA Dumšiškės	*1	172276179	Raseinių region, Paraseinio v.,	**A	99,88%	99,88%
22.	Agricultural entity AUGA Žadžiūnai	*1	175706853	Šiaulių region, Žadžiūnų 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, Kazių v., Skiemonių st. 2A	**A	99,99%	99,99%
25.	Agricultural entity AUGA Eimučiai	*1	175705032	Šiaulių region, Žadžiūnų 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 Želsvelė	*1	165666499	Marijampolės mun., Želsvos 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%
31.	Agricultural entity AUGA Gustoniai	*1	168565021	Panevėžio region, Gustonių v., M. Kriaučiūno st. 15	**A	100,00%	100,00%
32.	Cooperative entity Siesarčio üks	*3	302501098	Šakių region, Gotlybiškių v., Mokyklos st. 18	**A	99,44%	99,44%
33.	Cooperative entity Kašėta	*3	302501251	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 Skėmių 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, Žadžiūnų 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 Šventosios pievos	*3	302618201	Raseinių region, Kalnujų mstl. Žieveliškės st. 1	**A	96,36%	96,36%
41.	Cooperative entity Kairių üks	*3	302615194	Panevėžio region, Gustonių v., M. Kriaučiūno st. 15	**A	98,68%	98,68%
42.	Cooperative entity Šiaurinė valda	*3	302615187	Šiaulių 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 Žalmargėlis	*3	303145954	Vilniaus mun., Vilnius, Smolensko st. 10-100	**A	98,32%	98,32%
45.	Cooperative entity Juodmargėlis	*3	303159014	Raseinių region, Kalnujų mstl. Žieveliškės st. 1	**A	99,35%	99,35%
46.	Cooperative entity Agromilk	*3	302332698	Raseinių region, Kalnujų mstl. Žieveliškės st. 1	**A	96,28%	96,28%
47.	Cooperative entity Purpurėja	*3	302542337	Širvintų region, Širvintų v., Zosinos st. 7	**A	99,53%	99,53%
48.	Bukonių ekologinis üks 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, Žadžiūnų v., Gudelių st. 30-2	**A	48,67%	48,67%
53.	Vaitiekūnai reclamation infrastructure users association	*2	303170306	Šiaulių region, Žadžiūnų v., Gudelių st. 30-2	**A	48,67%	48,67%
54.	Association Grūduvos melioracija	*2	302567116	Šakių 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	*6	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%

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

AUGA GROUP, AB

Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR 3 MONTHS PERIOD ENDING 31 MARCH 2021

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

No.	Name of subsidiary	Legal form	Legal entity code	Registered office	Profile	Group ownership interest, %
						31/03/21	31/12/20
63.	AUGA Luganta UAB	*4	300045023	Kelmės region, Pašiaušės v.,	**A	100,00%	100,00%
64.	eTime invest UAB	*4	300578676	Vilnius mun., Vilnius, Saltoniškių st. 29	**G	100,00%	100,00%
65.	ŽVF 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, Kazių 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, Žadžiūnų 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 Smilgių 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 Žadžiūnų ekologinis ūkis	*1	303325870	Šiaulių region, Žadžiūnų v., Gudelių st. 30-2	**A	100,00%	100,00%
80.	Agricultural entity Želsvelės ekologinis ūkis	*1	303325856	Marijampolės mun., Želsvos v., Želsvelės st. 1	**A	100,00%	100,00%
81.	Prestviigi OU	*6	12654600	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
82.	Turvaste partners OU	*6	12655410	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
83.	Nakamaa Agro OU	*6	12655522	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10113	**G	100,00%	100,00%
84.	Hindaste Invest OU	*6	12655384	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
85.	Tuudi River OU	*6	12655640	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
86.	Palderma Partners OU	*6	12654959	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
87.	Ave-Martna Capital OU	*6	12655155	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
88.	Hobring Invest OU	*6	12655427	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
89.	Rukkirahhu Capital OU	*6	12655232	Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133	**G	100,00%	100,00%
90.	Pahasoo OU	*6	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., Alyvų 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.	Cooperative entity Žemėpačio 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 Lygiaidienio 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%
99.	Cooperative entity Dimstipatis	*3	303429424	Mažeikių aplinkl. 9, Naikių v., Mažeikių apylinkės sen., Mažeikių region,	**A	98,09%	98,09%
100.	Cooperative entity Aušlavis	*3	303429456	Radviliškio region, Skėmių v., Alyvų 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%

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

AUGA GROUP, AB

Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR 3 MONTHS PERIOD ENDING 31 MARCH 2021

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

No.	Name of subsidiary	Legal form	Legal entity code	Registered office	Profile	Group ownership interest, %
						31/03/21	31/12/20
103.	Cooperative entity Giraičio pieno ūkis	*3	303429399	Mažeikių aplinkl. 9, Naikių v., Mažeikių apylinkės sen., Mažeikių region,	**A	98,09%	98,09%
104.	Fentus 10 GmbH	*6	HRB106477	Straße des 17 Juni 10b 10623 Berlin, Germany	**G	100,00%	100,00%
105.	Norus 26 AG	*6	HRB109356B	Straße des 17 Juni 10b 10623 Berlin, Germany	**G	100,00%	100,00%
106.	LT Holding AG	*6	HRB109265B	Straße 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. Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
109.	AUGA Mažeikiai UAB	*4	300610348	Mažeikių av. 9, Naikių v., Mažeikių region,	**A	100,00%	100,00%
110.	PAE Agrar UAB	*4	300867691	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 st. 30	**A	100,00%	100,00%
127.	Agrar Venta UAB	*4	302307855	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
128.	Agrar Nerys UAB	*4	302594063	Raseinių region, Gėluvos v., Dvaro st. 30	**A	100,00%	100,00%
129.	Agrar Gėluva UAB	*4	302312133	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 st. 30	**A	100,00%	100,00%
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, Žieveliškės 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	**I	100,00%	100,00%

COMMENTS:

*1 Agricultural entity

**A Agricultural operations

**G Management of subsidiaries

*2 Association

**B Cash pool of the group

**H Trade and logistics

*3 Cooperative entity

**C Human resource management

**I Food processing

*4 Private limited Company

**D IT system development

*5 Public institution

**E Land management

*6 Foreign legal entity

**F Lease of machinery

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

AUGA GROUP, AB

Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR 3 MONTHS PERIOD ENDING 31 MARCH 2021

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

au ga

Property, plant and equipment

GROUP	Land	Buildings	Constructions and machinery	Vehicles, equipment and other property, plant and equipment	Construction in progress	Total
Carrying amount
As of 31 December 2019	60,622	40,978	22,602	2,198	1,707	128,108
- purchase of subsidiaries	-	2,262	2,223	132	-	4,617
- additions	6,667	454	2,289	781	2,273	12,465
- disposals and write-offs	(6)	(17)	(147)	(46)	-	(216)
- revaluation	851	-	-	-	-	851
- depreciation (including ROU assets)	(5,855)	(2,499)	(4,196)	(722)	-	(13,273)
- reclassifications	-	271	718	2	(990)	-
As of 31 December 2020	62,279	41,448	23,489	2,345	2,991	132,552
- additions	433	26	927	877	45	2,308
- disposals and write-offs	-	(5)	(45)	(19)	-	(69)
- revaluation	-	-	-	-	-	-
- depreciation (including ROU assets)	(1,487)	(630)	(1,026)	(196)	-	(3,342)
- reclassifications	-	-	-	1,067	(1,067)	-
As of 31 March 2021	61,225	40,839	23,342	4,074	1,968	131,448
Acquisition cost or revaluated amount as of
31 December 2019	65,981	54,560	40,730	5,308	1,707	168,286
31 December 2020	73,494	57,529	45,813	6,177	2,991	186,004
31 March 2021	73,927	57,550	46,695	8,102	1,969	188,242
Accumulated depreciation and impairment losses as of
31 December 2019	(5,359)	(13,582)	(18,128)	(3,110)	-	(40,179)
31 December 2020	(11,214)	(16,081)	(22,324)	(3,832)	-	(53,452)
31 March 2021	(12,701)	(16,711)	(23,353)	(4,028)	-	(56,760)
Carrying amount as of
31 December 2019	60,622	40,978	22,602	2,198	1,707	128,108
31 December 2020	62,279	41,448	23,489	2,345	2,991	132,552
31 March 2021	61,225	40,839	23,342	4,074	1,968	131,448

Right-of-use assets (ROU assets) recognized by the Group included the following type of assets:

	Land
Right of use assets	31 March 2021	31 December 2020
Acquisition cost	46,020	40,728
Additions	-	5,292
Less: accumulated depreciation	(12,700)	(11,214)
Carrying amount	33,320	34,806
	Buildings
Right of use assets	31 March 2021	31 December 2020
Acquisition cost	1,008	975
Additions	-	33
Less: accumulated depreciation	(306)	(271)
Carrying amount	702	737

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

5. Biological assets

The movement of Group's biological assets (in EUR thousand) consisted of the following:

	Non – current assets		Current assets
	Dairy cows	Other livestock	Mushroom seedbed	Crops	Total
Balance as of 31 December 2019	5,744	3,654	2,226	13,809	25,433
Direct purchases	-	123	-	-	123
Accumulated expenses	-	3,821	28,171	34,912	66,904
Transfer between groups	2,707	(2,707)	-	-	-
Direct sales	(523)	(224)	-	-	(747)
Harvest	-	-	(28,248)	(41,510)	(69,758)
Revaluation	(1,371)	(1,146)	-	7,692	5,175
Write-offs	(247)	(131)	-	-	(378)
Balance as of 31 December 2020	6,310	3,389	2,149	14,903	26,751
Direct purchases	-	74	-	-	74
Accumulated expenses	-	1,179	6,763	24,743	32,685
Transfer between groups	951	(951)	-	-	-
Direct sales	(128)	(63)	-	-	(191)
Harvest	-	-	(6,763)	(20,068)	(26,831)
Revaluation	(392)	(158)	-	1,594	1,043
Write-offs	(86)	(33)	-	-	(119)
Balance as of 31 March 2021	6,655	3,437	2,149	21,172	33,413

6. Inventory

The movement of Group's inventory quantities (in tonnes) consisted of the following:

	Wheat	Legumes	Mushrooms	Milk	End-consumer goods	Other	Forage	Raw materials*	Total
Balance as of 31 December 2019	25,988	7,512	1	18	-	-	59,340	-	92,859
Purchases	1,773	4,915	-	-	-	-	-	-	6,798
Sales	(54,732)	(17,269)	(12,906)	(25,338)	-	-	(836)	-	(111,191)
Production	51,461	31,115	12,911	26,890	-	-	79,840	-	202,217
Consumed in preparation of biological assets (livestock)	(1,432)	(2,425)	-	(1,104)	-	-	(59,315)	-	(64,276)
Consumed in preparation of biological assets (crops and mycelium seedbeds)	(5,692)	(9,752)	-	-	-	-	-	-	(15,444)
Inventory write-offs	(327)	(66)	-	(450)	-	-	(5,970)	-	(6,813)
Balance as of 31 December 2020	17,039	14,030	6	16	-	-	73,059	-	104,150
Purchases	44	1,504	-	-	-	-	-	-	1,548
Sales	(12,258)	(5,905)	(3,177)	(6,384)	-	-	(741)	-	(28,464)
Production	-	-	3,186	6,790	-	-	-	-	9,976
Consumed in preparation of biological assets (livestock)	(32)	(51)	-	(286)	-	-	(13,144)	-	(13,513)
Consumed in preparation of biological assets (crops and mycelium seedbeds)	(122)	(177)	-	-	-	-	-	-	(299)
Inventory write-offs	(157)	(85)	-	(106)	-	-	(318)	-	(666)
Balance as of 31 March 2021	4,514	9,317	15	30	-	-	58,857	-	72,732

*Raw materials consist of various units of measure, thus it cannot be disclosed in this table.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)
21

The movement of Group’s inventory values (in EUR thousand) consisted of the following:

	Wheat	Legumes	Mushrooms	Milk	End-consumer goods	Other	Forage	Raw materials	Total
Balance as of 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	655	2,063	-	-	4,056	4,314	-	12,126	23,225
Sales	(12,675)	(5,984)	(26,888)	(9,685)	(4,259)	(16,939)	(47)	(1,137)	(77,625)
Production	10,456	10,946	26,898	10,166	153	15,821	6,484	3,045	83,969
Consumed in preparation of biological assets (livestock)	(308)	(932)	-	(417)	-	(1,609)	(4,443)	(5,774)	(13,483)
Consumed in preparation of biological assets (crops and mycelium seedbed)	(1,236)	(3,713)	-	-	-	(1,910)	-	(7,263)	(14,122)
Inventory write-offs	(81)	(23)	-	(190)	(16)	(365)	(672)	(83)	(1,430)
Balance as of 31 December 2020	3,516	5,009	13	11	353	6,193	7,785	7,664	30,544
Purchases	17	641	-	-	668	1,093	-	3,191	5,609
Sales	(2,558)	(2,172)	(6,681)	(2,610)	(976)	(2,429)	(70)	(44)	(17,539)
Production	-	-	6,700	2,768	49	-	-	31	9,547
Consumed in preparation of biological assets (livestock)	(8)	(16)	-	(113)	(2)	(93)	(1,492)	(1,568)	(3,292)
Consumed in preparation of biological assets (crops and mycelium seedbed)	(33)	(59)	-	-	-	(509)	-	(672)	(1,274)
Inventory write-offs	(33)	(29)	-	(43)	(1)	(48)	(29)	(9)	(192)
Balance as of 31 March 2021	901	3,373	32	12	92	4,207	6,194	8,593	23,404

7. Receivables and advance payments

As of the balance sheet date Group’s receivables and advance payments consisted of the following:

	As of 31 March 2021	As of 31 December 2020
Trade receivables	6,392	6,628
VAT receivable	1,190	1,281
Receivables from National Paying Agency	3,445	86
Accounts receivable from private individuals	76	84
Other receivables	3,913	3,915
Advance payments and deferred expenses	5,566	4,771
Less: loss allowance	(680)	(680)
Total trade accounts receivable, net	19,903	16,084
Non-current receivables, gross	450	450
Less: loss allowance	(4)	(4)
Total	20,349	16,530

Receivables from the National Paying Agency are the direct subsidies receivable for crops and milk, which are due by 30 April of the following year.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)
22

8. Financial liabilities

The Group’s long-term borrowings consisted of the following:

	As of 31 March 2021	As of 31 December 2020
Borrowings from banks
Mushroom growing companies	8,566	8,892
FMCG companies	1,140	1,184
Agricultural entities	16,533	11,003
Parent company	3,000	3,000
Other borrowings
Creditors	753	753
Investment fund for purchased land	253	253
Green Bonds	18,892	18,818
Total	49,137	43,903
Less: amounts, payable within one year (according to agreements)	(2,662)	(3,409)
Total long-term borrowings	46,475	40,494

On 13 December 2019 the Group issued 20,000 units of Green Bonds (hereinafter – Bonds) with a nominal value of EUR 1,000. Balance sheet value of the bonds represent the value of the bonds after discounts and other related expenses. These expenses and discounts are accounted as interest expenses and capitalized to the value of the bonds over the 5-year period.

The long-term borrowings and payables are repayable as follows:

	As of 31 March 2021	As of 31 December 2020
Financial liabilities to banks and bondholders
Within second year	5,332	5,186
Within third and fourth year	31,189	25,843
After fifth year and later	9,954	9,465
Total	46,475	40,494

The Group’s short-term borrowings were the following:

	As of 31 March 2021	As of 31 December 2020
Borrowings from banks
Mushroom growing companies	2,400	2,400
FMCG companies	-	-
Parent company	-	-
Grain selling entity	4,450	7,000
Total short-term borrowings	6,850	9,400

Short-term loans from banks as of 31 March 2021 include EUR 6,850 thousand credit-line facilities (2020: EUR 9,400 thousand).

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

9. Leases

The Group’s leases consisted of the following:

	As of 31 March 2021	As of 31 December 2020
Lease liabilities
Lease liabilities related to right-of-use assets*	33,383	34,626
Lease liabilities related to other assets**	6,388	6,613
Total	39,771	41,239
Less: amounts payable within one year
Lease liabilities related to right-of-use assets*	3,730	4,607
Lease liabilities related to other assets**	2,161	2,950
Total	5,891	7,557
Total long-term leases	33,880	33,682

Lease liabilities accounted as operational lease before adoption of IFRS 16.
** Lease liabilities accounted as financial lease before adoption of IFRS 16.

10. Results of business segments

CROP GROWING SEGMENT

a) Harvest of agricultural produce	3-month period ending 31 March 2021	3-month period ending 31 March 2020
Total cultivated land, ha	39,223	39,637
Wheat	10,000	11,896
Legumes	7,937	9,035
Other cash crops	13,818	9,664
Forage Crops	6,731	8,168
Fallow	738	875
Average harvest yield, t/ha
Wheat	-	-
Legumes	-	-
Other cash crops	-	-
Forage Crops	-	-
Total fair value of harvest, EUR'000	20,068	18,758
Wheat	6,975	8,853
Legumes	3,627	1,913
Other cash crops	7,240	4,495
Forage Crops	2,226	3,497
Total production cost of harvest, EUR'000	16,456	16,034
Wheat	5,836	7,071
Legumes	3,627	1,913
Other cash crops	4,767	3,552
Forage Crops	2,226	3,497
Total gain (loss) on revaluation of biological assets at fair value, EUR'000*	3,612	2,724
Gain (loss) on revaluation of biological assets at fair value recognized in previous periods, EUR'000*	2,018	1,450
Gain (loss) on revaluation of biological assets recognized in reporting period, EUR'000*	1,594	1,274

*Estimated gain (loss) on recognition of winter crops at fair value as of 31 March 2021. For more information please see management report’s section 2.2.

b) Sales of agricultural produce

	3-month period ending 31 March 2021	3-month period ending 31 March 2020
Total revenue of sold agricultural produce, EUR'000	7,531	5,358
Total cost of sold agricultural produce*, EUR'000	7,998	5,317
Total inventory write-offs, EUR'000	78	241
Result of sales of agricultural produce, EUR'000	(545)	(200)

The cost of sold agricultural produce represents the value of crops evaluated at fair values at point of harvest and related sales costs.

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

| c) Agricultural subsidies | 3-month period ending 31
March 2021 | 3-month period ending 31
March 2020 |
| --- | --- | --- |
| Direct subsidies, EUR'000 | 1,289 | 1,139 |
| Organic farming subsidies, EUR'000 | 1,090 | 751 |
| Total subsidies, EUR'000 | 2,379 | 1,889 |
| Gross profit of crop growing segment per period, EUR'000 (a+b+c) | 3,428 | 2,963 |
| Depreciation included in the harvest of agricultural produce, EUR'000 | 878 | 983 |
| DAIRY SEGMENT | 3-month period ending 31
March 2021 | 3-month period ending 31
March 2020 |
| --- | --- | --- |
| Total quantity sold, tonnes | 6,565 | 6,963 |
| Non-organic milk, tonnes | 130 | 896 |
| Organic milk, tonnes | 6,060 | 5,653 |
| Dairy commodities, tonnes | 190 | 233 |
| Cattle, tonnes | 186 | 181 |
| Total revenues of dairy segment, EUR'000 | 3,282 | 3,490 |
| Non-organic milk, EUR'000 | 44 | 297 |
| Organic milk, EUR'000 | 2,466 | 2,302 |
| Dairy commodities, EUR'000 | 580 | 716 |
| Cattle, EUR'000 | 191 | 176 |
| Total cost of dairy segment, EUR'000 | 3,257 | 3,193 |
| Milk, EUR'000 | 2,509 | 2,313 |
| Dairy commodities, EUR'000 | 557 | 704 |
| Cattle, EUR'000 | 191 | 176 |
| Revaluation of biological assets, EUR'000 | (550) | (702) |
| Total subsidies, EUR'000 | 732 | 496 |
| Gross profit of dairy segment, EUR'000 | 207 | 92 |
| Depreciation included in cost of dairy segment sales, EUR'000 | 139 | 127 |
| MUSHROOM SEGMENT | 3-month period ending 31
March 2021 | 3-month period ending 31
March 2020 |
| --- | --- | --- |
| Total quantity sold, tonnes | 3,177 | 3,288 |
| Non-organic mushrooms, tonnes | 2,976 | 3,029 |
| Organic mushrooms, tonnes | 200 | 259 |
| Total revenues from mushroom sales, EUR'000 | 7,136 | 6,717 |
| Non-organic mushrooms, EUR'000 | 6,433 | 5,917 |
| Organic mushrooms, EUR'000 | 703 | 800 |
| Total cost of mushrooms sold, EUR'000 | 6,681 | 6,169 |
| Non-organic mushrooms, EUR'000 | 6,218 | 5,686 |
| Organic mushrooms, EUR'000 | 463 | 483 |
| Total revenues from sales of mushroom seedbed, EUR'000 | 124 | 564 |
| Total cost from sales of mushroom seedbed, EUR'000 | 82 | 491 |
| Gross profit of mushroom growing segment, EUR'000 | 497 | 621 |
| Depreciation included in cost of mushroom sales, EUR'000 | 395 | 405 |
| END-CONSUMER PACKAGED GOODS | 3-month period ending 31
March 2021 | 3-month period ending 31
March 2020 |
| --- | --- | --- |
| Total revenue from end-consumer packaged goods sales, EUR'000 | 1,419 | 908 |
| Total cost of sales of end-consumer packaged goods, EUR'000 | 1,042 | 849 |
| Gross profit of sales of end-consumer packaged goods, EUR'000 | 378 | 60 |
| Depreciation included in cost of sales of end-consumer packaged goods, EUR'000 | 89 | - |

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

11. Operating expenses

Operating expenses breakdown by type of expenses was the following:

	3-month period ending 31 March
	2021	2020
Payroll expenses	917	851
Social security expenses	248	283
Share based payments amortization	98	62
Fines and late payments	1	17
Depreciation PP&E, ROU assets and amortization of IA	223	196
Loss allowance of amounts receivable	-	-
Consultations and business plan preparations	56	78
Insurance and tax expense	111	119
Selling expenses	205	137
Fuel costs	60	38
Real estate registration and notaries	34	45
Rent and utilities	108	94
Transportation costs	67	50
Office administration	170	96
Other expenses	228	181
Total	2,526	2,246

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:

	3-month period ending 31 March
	2021	2020
Gain (loss) from sale of property, plant and equipment	12	16
Write down of liabilities	-	-
Gain (loss) from sale of subsidiaries	-	-
Interest and fines income	5	86
Insurance benefits	64	11
Other income (expenses)	40	13
Total	121	126

13. Financial expenses

Financial expenses breakdown by type was the following:

	3-month period ending 31 March
	2021	2020
Bank interest expenses	359	384
Bond interest expenses	374	374
Leasing and other financial expenses	148	100
Interest expenses (IFRS 16)	528	564
Currency exchange differences	12	4
Other financial expenses	14	13
Total	1,435	1,439

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)

14. Subsequent events January – May 2021

The Company informs of all material events over the CNS (Company News System) of NASDAQ Vilnius and on the ESPI (Electronic Information Transfer System) which is operated by Polish FSA, as well as on Electronic Information Base which is operated by Warsaw Stock Exchange.

Announcement date	Announcement header
24.05.2021	AUGA group, AB will organise an Investor Conference Webinar to introduce unaudited financial results for the 3 months of 2021
03.05.2021	Annual information for 2020
30.04.2021	Decisions of the Ordinary General Meeting of Shareholders of AUGA group, AB which Took Place on 30th April 2021
22.04.2021	AUGA group, AB Notification of transactions by persons discharging managerial responsibilities
22.04.2021	AUGA group, AB progresses with its employee motivation scheme through share options
19.04.2021	Notice on the update of questions of the agenda of the ordinary general meeting of shareholders of AUGA group, AB on 30 April 2021 by drafts of decisions and related information
12.04.2021	CORRECTION: AUGA group, AB will organise an Investor Conference Webinar dedicated to retail investors
12.04.2021	AUGA group, AB will organise an Investor Conference Webinar dedicated to retail investors
08.04.2021	Notice on Convocation of the ordinary General Meeting of Shareholders of AUGA group, AB on 30 April 2021
06.04.2021	AUGA group, AB (the Company) increased subsidiary UAB Grain LT (Grain LT) share capital by EUR 10 million by capitalized Grain LT's debt to the Company
01.03.2021	AUGA group, AB presentation of financial results for the 12 months of 2020
26.02.2021	Interim information on AUGA group, AB for the 12-month period ending 31 December 2020
24.02.2021	AUGA group, AB (the Company) acquired 100% UAB Grain LT (Grain LT) shares from another company of the group UAB AUGA Grūduva
23.02.2021	AUGA group, AB will organise an Investor Conference Webinar to introduce unaudited financial results for the 12 months of 2020
17.02.2021	AUGA group, AB Published Green Bond Report
03.02.2021	Dates of periodic information disclosure of AUGA group, AB for the year 2021 (investor calendar)
27.01.2021	Announcement on suspension of AUGA group, AB green bonds trading for one day due to NASDAQ technical change in trading system

V. CONFIRMATION OF RESPONSIBLE PERSONS

In accordance with the Law on Securities of the Republic of Lithuania and the Rules on the Information Disclosure approved by the Board of the Bank of Lithuania, we hereby confirm that, to the best of our knowledge, the consolidated interim financial statements of AUGA group, AB for the three months period ended 31 March 2021, have been prepared in accordance with the International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position, profit or loss and cash flow of AUGA group, AB group.

Chief Executive Officer
Kęstutis Juščius

Chief Financial Officer
Mindaugas Ambrasas

Consolidated interim financial statements for 3 months period ending 31 March 2021 (unaudited)
27

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AUGA group — Interim / Quarterly Report 2021

2259_rns_2021-05-31_120dfed6-8036-4ba8-a49a-73cb85b93fab.pdf

augaGroup

TABLE OF CONTENTS

I. GENERAL INFORMATION

1.1. Accounting period covered by the report

1.2. Key data on the issuer

1.3. Main lines of business of the Group

1.4. The structure of the Group

1.5. Agreements with the mediators of securities public circulation

1.6. Data about securities traded on regulated markets

1.7. Information on non-financial reporting

1.8. Significant post balance sheet events

II. MANAGEMENT REPORT

2.1. Overall results

2.2. Crop growing segment overview

Harvest in the season of 2020/2021

2.3. Dairy segment overview

2.4. Mushroom segment overview

2.5. Fast moving consumer goods (FMCG) segment

2.6. Operating expenses

2.7. COVID-19 pandemic effect

Crop growing

Dairy

Mushroom growing

FMCG

III. FINANCIAL STATEMENTS

Consolidated balance sheet

Consolidated statement of cash flows

Share-based payments

2. Share capital and reserves

Shareholders

Reserves of the Company

3. The structure of the Group

COMMENTS:

5. Biological assets

6. Inventory

7. Receivables and advance payments

8. Financial liabilities

9. Leases

10. Results of business segments

CROP GROWING SEGMENT

b) Sales of agricultural produce

11. Operating expenses

12. Other income

13. Financial expenses

14. Subsequent events January – May 2021

V. CONFIRMATION OF RESPONSIBLE PERSONS

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AUGA group Interim / Quarterly Report 2021