AUGA group - Interim / Quarterly Report 2022

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AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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I. GENERAL INFORMATION ............................................................................................................................................................................ 2 II. MANAGEMENT REPORT ............................................................................................................................................................................. 4 III. FINANCIAL STATEMENTS ........................................................................................................................................................................ 11 Consolidated balance sheet ........................................................................................................................................................................ 11 Consolidated statement of profit or loss and statement of other comprehensive income ............................................................................. 12 Consolidated statement of changes in equity .............................................................................................................................................. 13 Consolidated statement of cash flows ......................................................................................................................................................... 14 IV. EXPLANATORY NOTES ............................................................................................................................................................................ 15 1. Basis of the preparation .......................................................................................................................................................................... 15 2. Share capital and reserves ..................................................................................................................................................................... 16 3. The structure of the Group ...................................................................................................................................................................... 17 4. Property, plant and equipment ................................................................................................................................................................ 21 5. Biological assets ..................................................................................................................................................................................... 22 6. Inventory ................................................................................................................................................................................................. 22 7. Receivables and advance payments ....................................................................................................................................................... 22 8. Financial liabilities ................................................................................................................................................................................... 23 9. Leases .................................................................................................................................................................................................... 23 10. Results of business segments .............................................................................................................................................................. 24 11. Operating expenses .............................................................................................................................................................................. 26 12. Other income ........................................................................................................................................................................................ 26 13. Other gains/(losses) .............................................................................................................................................................................. 26 14. Financial expenses ............................................................................................................................................................................... 27 15. Subsequent events January – November 2022 ..................................................................................................................................... 27 V. CONFIRMATION OF RESPONSIBLE PERSONS ....................................................................................................................................... 28

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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I. GENERAL INFORMATION

1.1. Accounting period covered by the report

Consolidated interim report was prepared for the 9-month period ended 30 September 2022.

1.2. Key data on the issuer

Name of the company: AUGA group, AB (hereinafter – AUGA group, AB or the Company) Share capital: EUR 66,617,089.58 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: VĮ Registrų centras

1.3. Main lines of business of the Group

Operations area: Organic agriculture Main operating segments: Crop 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 30 September 2022, the consolidated Group (hereinafter the Group) consists of the Company and 126 subsidiaries (31 December 2021: 127 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	229,714,102	0.29	66,617,089.58	LT0000127466

The securities of the Company were also traded in Warsaw Stock Exchange. On 14 March 2022 the Polish Financial Supervision Authority has made the decision to give consent to the delisting of the Company's shares from the Warsaw Stock Exchange from 8 April 2022. As of this date, the Company's shares will no longer be listed on the Warsaw Stock Exchange. The board of Warsaw Stock Exchange has also agreed to delist the Company’s shares from the respective exchange on 8 April 2022. Because of delisting, the last day of trading of Company’s shares in the regulated market of Warsaw Stock Exchange was 7 April 2022.

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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Information about the Company’s shares trading on the NASDAQ Vilnius:

Reporting period	Price, EUR Average Open High Low Last	Price, EUR Average Open High Low Last	Price, EUR Average Open High Low Last	Price, EUR Average Open High Low Last	Price, EUR Average Open High Low Last	Total turnover	Total turnover
			High	Low	Last	Units	EUR
		Open

2022 I-III quarters	0.462		0.524	0.397	0.39	9 3,505,030	1,618,206
		0.498

AUGA group, AB shares volume, share price and OMX Baltic Benchmark index variance for the period of 1 January 2020 to 30 September 2022.

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PRICE (EUR) VOLUME (UNITS)
0,7 800 000
700 000
0,6
600 000
0,5
500 000
0,4
400 000
0,3
300 000
0,2
200 000
0,1 100 000
0 0
| 2020 | 2021 | 2022 |
Shares volume Share price OMX Baltic Benchmark GI
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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 2021 is provided in the Group’s consolidated annual report for the year ending 31 December 2021.

1.8. Significant post balance sheet events

Post balance sheet events are disclosed in the consolidated financial statements of the Group for the 9-month period ending 30 September 2022. See financial statements’ note 15 for more details.

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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II. MANAGEMENT REPORT

2.1. Overall results

The Group improved their operating results in the first nine months of the year.

The sales revenue during the first nine months of 2022 was EUR 57.71 million, an increase of 5% compared to EUR 54.90 million in the same period last year.

In the first nine months of 2022, the Group's gross profit was EUR 13.14 million, representing an increase of 673% compared to the previous year (EUR 1.70 million). The Group's net loss from EUR 10.43 million fixed in the three quarters of 2021, decreased to EUR 0.62 million in three quarters of 2022.

The Group‘s EBITDA for the first nine months of 2022 increased by 208% to EUR 16.78 million compared to EUR 5.45 million in the same period of 2021.


Main financial results, EUR million	9-month of 2022	9-month of 2021	9-month of	Variance	Variance
			2020	2022/2021, %	2021/2020, %

Revenues	57.71	54.90	62.38	+5%	-12%
Gross profit (loss)	13.14	1.70	11.88	+673%	-86%
Gross profit margin	23%	3%	19%	+667%	-84%
Net profit (loss)	(0.62)	(10.43)	0.44	+94%	n/a
Net profit margin	(1%)	(19%)	1%	+95%	n/a
EBITDA	16.78	5.45	15.94	+208%	-66%
EBITDA margin	29%	10%	26%	+190%	-61%

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 2021/2022

The total cultivated land area by the Group amounted to 38.5 thousand hectares (ha) in the 2021/2022 season and is slightly less than the cultivated area in the 2020/2021 season. In the 2021/2022 season, 30.1 thousand ha is seeded with crops (30.9 thousand in the 2020/2021 season) out of which 11.7 thousand ha is dedicated to wheat, 6.8 thousand ha to legumes and 11.6 thousand ha to other cash crops. The majority – 10.1 thousand ha out of total 11.7 thousand ha – of wheat will be winter wheat as winter crops usually have higher yield potential compared to summer alternatives. Forage crops comprise 7.7 thousand ha in the 2021/2022 season compared to 6.8 thousand ha in the 2020/2021 season.

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Cultivated land area, thousand ha
11,9 11,7 12,4 11,6
10,4
9,7
9,0
8,1 8,2 7,7
6,8 6,8
Wheat Legumes Other cash crops Forage Crops
2019/2020 2020/2021 2021/2022
HA'000
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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 30 September 2022 using following formula and assumptions:

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

Cost incurred is cost actually incurred for a particular crop during the 2021/2022 season.
Cultivated area in ha is the area of a particular crop seeded and expected to be harvested.

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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Forecasted average yield in tonnes per ha is the expected yield for a particular crop based on the most relevant information about the crops and updated according to the most recent data.
Forecasted price per tonne. The fair value calculations relied on the negotiated, future prices of crops after taking into account the contracts already signed with regards to the sale of the 2021/2022 harvest.
Forecasted total cost per ha. Actual costs incurred during the 2020/2021 season which are adjusted by 21% upwards due to the growth of the main cost components.
T is the portion of time that has already passed from sowing date until the forecasted harvest date expressed as a percentage. As of 30 September 2022, the average completion percentage estimated for this year’s harvest crops was around 98% while the average completion percentage of next year crops was around 13%.
X is an adjustment parameter for possible unexpected negative effects to the harvest. 10% was used in fair value estimations as of 30 June 2022. Crops of the following harvest were adjusted by 30%.

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. Forecasted parameters used in the fair value estimation will be re-evaluated quarterly and adjusted by taking into consideration the most recent data.

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.

As of 30 September 2022 the Group has completed harvesting most of the cultures. Harvest of soya, buckwheat, hemp and other vegetables will be completed in october.

Tables below present actual information on fully harvested cultures group by 30 September – wheat and legumes. Since the harvesting of other cash crops is not fully completed at the reporting date, actual information on other cash crops will be provided in the next quarter.

Table below provides harvested land plot of wheat and legumes in the current and past two seasons. Land plot of wheat and legumes remained stable in the season of 2021/2022 compared to previous period and constituted 61% of all cash crops land plot compared to 60% in the previous season.


Harvested land plot by culture group, HA	9-month of 2022	9-month of 2021		Variance	Variance
			9-month of 2020
				2022/2021, %	2021/2020, %


Wheat	11,693	10,440	11,896	+12%	-12%
Legumes	6,785	8,056	9,035	-16%	-11%

Comparison of wheat and legumes average cost per hectare of land is provided in the table below.


Cost per 1 ha cultivated land, EUR/ha	9-month of 2022	9-month of 2021		Variance	Variance
			9-month of 2020
				2022/2021, %	2021/2020, %


Wheat	991	762	824	+30%	-8%
Legumes	830	829	839	0%	-1%

Cost of legumes remained at the similar level in the season of 2021/2022 compared to previous season, while the average cost of wheat has increased by 30%. Cost of legumes remained at the same level as in previous year as some costs increased while others decreased – cleaning and drying costs have decreased while seed, land tillage and land rent costs have increased. Cost of wheat has increased in 2022 due to increased land tillage and land rent costs.

Table below depicts wheat and legume yields in the current and past two seasons. Wheat yield in 2022 was 3.41 t/ha which is 4% higher than wheat yield in the equivalent period last year. Legumes yield in 2022 increased by 111% compared to previous year from 1.10 t/ha to 2.32 t/ha. Yield of legumes differs significantly over last year due to the heatwave which occurred last summer and caused the decrease of yields. This year the yield of legumes was restored due to favourable weather conditions. However, these conditions were not as favorable to wheat due to the storms with strong winds that occurred in July and flattened part of wheat fields. Nevertheless, the achieved yield of wheat is only slightly better when compared to the 2020/2021 due to the poor yield of summer wheat.


Average yield, t/ha	9-month of 2022	9-month of 2021		Variance	Variance 2021/2020, %
			9-month of 2020
				2022/2021, %


Wheat	3.41	3.29	4.13	+4%	-20%
Legumes	2.32	1.10	2.73	+111%	-60%

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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The Group has anticipated a higher yield this year. As can be seen from the table below, actual wheat yield was lower by 24%, while legumes yield was lower by 20% compared to expected yield at the beginning of the harvesting.

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Average yield in the season of Forecasted result for the Actual result for the season of
Variance, %
2021/2022, t/ha season of 2021/2022 2021/2022
Wheat 4.14 3.41 -24%
Legumes 2.90 2.32 -20%
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Wheat yield in Lithuania, t/ha Legumes yield in Lithuania, t/ha

NOTE: The data of LT organic farms for 2022 has not yet been published, the data of conventional farms in the LT is preliminary. Reference: 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.

According to preliminary data, most of the cash crops yields in 2022 will be higher than in previous year. Final yields of all cash crops will be provided in the next quarter.

Table below depicts comparison of wheat and legumes prices at which the harvest was evaluated (at fair value) in the seasons of 2021/2022, 2020/2021 ir 2019/2020. It should be noted that at the time of the publication of the financial statements for the three quarters of 2022, significant part of the 2021/2022 season harvest has already been sold or contracted at fixed prices, therefore fair value of the crops was estimated based on average contract prices.


Average price of 1 tonne of crop, eliminating sales costs, EUR/t	9-month of 2022	9-month of 2021	9-month of	Variance	Variance
			2020	2022/2021, %	2021/2020, %

Wheat	402	240	208	+68%	+15%
Legumes	576	347	354	+66%	-2%

As can be seen from the data above, the price of 1 tonne of wheat in the season of 2021/2022 increased by 68% compared to previous season. The main causes of the increase are growing prices of raw materials, rising energy costs and uncertainty caused by the geopolitical situation in Ukraine.

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-month of 2022	9-month of 2021		Variance	Variance
			9-month of 2020
				2022/2021, %	2021/2020, %


Wheat	380	28	29	+1257%	-4%
Legumes	506	(448)	130	n/a	n/a

Average gain per 1 hectare from wheat has increased significantly in the season of 2021/2022 compared to the previous season which resulted in losses due to the heatwaves. On the other hand, the weather conditions this year were favourable and allowed the Group to improve its harvest. Increase in costs was compensated with growing prices. The result of legumes was also significantly lower last season when compared to this year. The main causes were bigger yields which more than doubled when compared to last season.

As assessed at 30 September of 2022, the crop harvest will be better than last year. Higher product prices offset the increase in production cost and this is the major factor impacting results. Nevertheless, the Group will only be able to assess the final result of the crop segment for 2022 after the end of the third quarter. As of 30 September 2022, the Group recognized a EUR 8.20 million gain on revaluation of biological assets at fair value. It should be noted that as of 31 December 2021 Group recognised gain of EUR 2.33 million on revaluation of biological assets at fair value for the 2021/2022 season’s crops. Thus, gain on revaluation of biological assets at fair value accounted for in the first half of 2022 amounts to EUR 5.86 million.

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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Crops value, EUR million	9-month of 2022	9-month of 2021	9-month	Variance	Variance
			of 2020	2022/2021, %	2021/2020, %

Gain (loss) on revaluation of biological assets at fair valuerecognizedinprevious period
	2.33	2.02	1.45	+15%	+39%

Gain (loss) on revaluation of biological assets at fair valuerecognizedin reporting period
	5.86	(3.37)	6.49	n/a	n/a

Total gain (loss) on revaluation of biological assets at fair value
	8.20	(1.35)	7.94	n/a	n/a

Crop growing segment sales results

Total revenue generated from sales in the crop growing segment amounted to EUR 18.71 million in 2022, which marks an increase of EUR 0.30 million in revenue compared to 2021.


Crop growing segment results, EUR million	9-month of 2022	9-month of 2021	9-month	Variance 2022/2021, %	Variance
			of 2020		2021/2020, %
Sales revenue	18.71	18.41	26,21	+2%	-30%
Cost of sales	(17.73)	(20.13)	(27,16)	-12%	-26%
Inventory write-offs	(0.95)	(2.38)	(0,98)	-60%	+144%
Result of internal transactions	(1.00)	n/a	n/a	n/a	n/a
Result of sales of agricultural produce	(0.96)	(4.10)	(1,93)	+77%	-113%

The crop growing segment’s cost of sales for the 9 months of 2022 amounted to EUR 17.73 million, 12% less compared to last year. In order to assess the results of each segment more precisely, the transactions between segments are executed based on fixed pricing, thus, starting from 2022 such transactions are presented separately and amounted to a EUR 1 million loss to the crop growing segment in the I-III quarters of 2022.

Agricultural subsidies and gross profit of the crop growing segment

Total amount of agricultural subsidies accrued in 9 months of 2022 was EUR 7.06 million compared to EUR 6.98 million during the same period in 2021. Accrued subsidies amount is based on calculations according to currently applicable requirements of subsidising programmes regulations.

The gross profit of the crop growing segment, encompassing the results of agricultural produce sales, gain (loss) on changes in fair value of biological assets and agricultural subsidies, has improved in 2022 when compared to last year due to the increased gain on revaluation of biological assets at fair value and improving result of sales of agricultural produce.


Gross profit of crop growing segment, EUR	9-month of 2022	9-month of 2021	9-month	Variance 2022/2021, %	Variance
million			of 2020		2021/2020, %
Gain (loss) on revaluation of biological assets at fair				n/a
	5.86	(3.37)	6.49		n/a
value recognised in reporting period

Result of sales of agricultural produce	(0.96)	(4.10)	(1.93)	+77%	-113%

Subsidies	7.06	6.98	5.57	+1%	+25%

Gross profit	11.96	(0.50)	10.13	n/a	n/a

2.3. Dairy segment overview

The result of the dairy segment in the I-III quarters of 2022 has improved compared to the same period last year. Rising production prices had the largest effect. Compared to last year the total sales revenue of the dairy segment grew by 21% and reached EUR 12.32 million.

The average milk yield has decreased due to changes in the structure of feeds. This change was influenced by the poor harvest of legumes (protein forage) of 2020/2021 season due to which the quality of feeds had to be reduced. However, much better yields were reached this season and this will enable the Group to restore the quality of feeds which will in turn increase the milk yield.

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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22,7 22,9 Milk yield per cow per day, kg
23,0 22,5
22,3 22,4
22,0 22,1 21,9 21,8
22,0 21,6
21,4 22,0 22,0 22,0 21,2
21,1
21,0 21,3 21,2 20,8 20,6 20,6 20,7
20,5 20,3
20,1
19,9 20,0 20,6 20,5
20,0 20,2
19,2
19,0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2021 2022
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In the 9 months of 2022 the average price of milk sold was around EUR 519 per tonne and 26% higher comparing to the same period last year when it was EUR 413 per tonne.

The dairy segment’s cost of sales amounted to EUR 11.02 million during the 9 months of 2022 which is EUR 1.15 million more than in the same period last year.

During the 9 months of 2022, a loss of EUR 1.77 million was incurred due to the revaluation of biological assets (animal herd). In comparison, the loss due to the revaluation of biological assets (animal herd) was 40% higher last year.

In the I-III quarters of 2022, the Group has recorded a EUR 1.50 million gross profit increase in the dairy segment when compared to last year.


	9-month of 2022	9-month of 2021	9-month	Variance	Variance
			of 2020	2022/2021, %	2021/2020, %
Total quantity of products sold, t	20,249	20,168	20,387	0%	-1%
Milk, t	19,305	19,112	19,307	+1%	-1%
Dairy commodities, t	332	502	559	-34%	-10%
Cattle, t	612	554	521	10%	+6%
Revenue, EUR million	12.32	10.16	9.87	+21%	+3%
Milk, EUR million	10.01	7.89	7.63	27%	+3%
Dairy commodities, EUR million	1.26	1.62	1.69	-22%	-4%
Cattle, EUR million	1.04	0.65	0.55	+60%	+18%
Cost of sales, EUR million	(11.02)	(9.87)	(9.45)	+12%	+4%
Milk, EUR million	(8.76)	(7.72)	(7.25)	+13%	+6%
Dairy commodities, EUR million	(1.22)	(1.50)	(1.65)	-19%	-9%
Cattle, EUR million	(1.04)	(0.65)	(0.55)	+60%	+18%
Revaluation of biological assets, EUR million				-29%
	(1.77)	(2.48)	(2.31)		+7%

Subsidies, EUR million	2.14	2.36	1.97	-9%	+20%
Gross profit, EUR million	1.67	0.17	0.08	882%	+113%

2.4. Mushroom segment overview

Sales revenues in the mushroom growing segment amounted to EUR 21.17 million in the 9-month period of 2022, and resulted a decrease of 1% compared to the same period last year.

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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In the 3[rd] quarter energy costs soared and this had a negative impact on the segment’s result. The total cost of sales of the mushroom growing segment amounted to EUR 22.68 million in the 9-month period of 2022 and was EUR 1.78 million higher compared to the same period in 2021. Cost of mushrooms mainly has shifted upwards due to growing energy and transportation costs that showed an increase of 72% (EUR 1.8 million) when compared to the corresponding period last year. The average cost of 1 tonne of mushrooms sold increased from 2,283 EUR/tonne to 2,530 EUR/tonne

Sales price was increased in order to compensate the growth of costs. Even though In the 9-month period of 2022, the average non-organic and organic mushrooms sales price per tonne, which was equal to EUR 2,359, has increased only by 1% when compared to the equivalent period in 2021, however, excluding transport and packaging, and only taking into account the price of mushrooms, in the 3[rd] quarter it was 8% higher than in the 1[st] quarter. The ratio of organic mushrooms sold has increased and reached 7.5% during the 3[rd] quarter of 2022. The same ratio last year was equal to 5.8%.

The production volume was not optimal due to saving energy resources and management of production challenges, nonetheless, was higher than in the 3[rd] quarter of 2022.

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Mushrooms produced, tonnes
3 700
3 097 3 081 2 998
3 200 2 857
2 681 2 743
2 700 2 487
2 200
1 700
1 200
700
1 2 3 4
2021 2022
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As a result, the gross result of the segment was negative and for the 9-month period of 2022 amounted to a loss of EUR 1.51 million. During the same period last year, the Group has recorded a gross profit of EUR 0.56 million. Planned investments into production of renewable energy for self-consumption and biomethane production projects that are already being developed by the Group should reduce the dependency on energy costs and enable better control over them.


	9-month of 2022	9-month of 2021	9-month	Variance 2022/2021, %	Variance
			of 2020		2021/2020, %
Sold mushrooms, t	8,834	9,072	9,652	-3%	-6%
Average price (Eur/t)	2,359	2,326	2,231	+1%	+4%
Total revenue, EUR million	21.17	21.46	22.94	-1%	-6%
Mushroom sales revenue, EUR million	20.84	21.10	21.54	-1%	-2%
Compost sales revenue, EUR million	0.33	0.36	1.40	-8%	-74%
Cost of sale, EUR million	(22.68)	(20.90)	(21.55)	+9%	-3%
Cost of mushrooms sold, EUR million	(22.35)	(20.71)	(20.30)	+8%	+2%
Cost of compost sold, EUR million	(0.33)	(0.20)	(1.25)	+66%	84%
Gross profit, EUR million	(1.51)	0.56	1.38	n/a	-59%

2.5. Fast-moving consumer goods (FMCG) segment

Total sales of the segment amounted to EUR 5.50 million in the 3[rd] quarter of 2022. In the equivalent period last year, sales of the FMCG segment were EUR 0.62 million lower. Even though global events and uncertainty in the market had an effect on the sales of this segment in the first half of the year, positive tendencies can be seen in the 3[rd] quarter as sales in this quarter alone have reached EUR 2.78 million which is 21% higher than in the same period last year. Also, a big part of this year’s sales to the biggest and preeminent by its scale market – the USA will be continued in the 4[th] quarter as well.

Cost of sales were EUR 4.49 million compared to EUR 3.41 million last year. Growing costs have also had an effect on the segment’s profitability. During the 9-month period of 2022, the FMCG segment’s gross profit has decreased to EUR 1.01 million. During the same period in 2021, gross

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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profit amounted to EUR 1.47 million. Nevertheless, a good tendency can be seen in terms of the segment’s profitability as the profit of the 3[rd] quarter accounts to 81% of the segment’s profit in 2022.


FMCG segment results, EUR million	9-month of 2022	9-month of 2021	9-month	Variance 2022/2021, %	Variance
			of 2020		2021/2020, %
Sales revenue	5.50	4.88	3.37	+13%	+45%
Cost of goods sold	(4.49)	(3.41)	(3.08)	+32%	+11%

Gross profit	1.01	1.47	0.29	-31%	+407%

During the 9-month period of 2022 the Group has exported its products to 29 countries compared to 35 countries in the same period in 2021.

Preserved products, especially ready-to-eat organic soups, remain the main product group in the segment.

The 2022 FMCG sales revenue structure with respect to product types is depicted in the chart below.

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----- Start of picture text -----

Revenue structure of the fast moving consumer goods sales, %
Preserved mushrooms, vegetables and soups
7% Grain products
84% 3%
7% Eggs
Other end-consumer products (milk, vegetables, etc.)
----- End of picture text -----

2.6. Operating expenses

The Group's operating expenses during the 9-month of 2022 amounted to EUR 9.25 million compared to EUR 8.22 million in the same period last year. Operating expenses increased mainly due to increased salaries, debt losses and other expenses.

2.7. Capital expenditures

Total investments (additions) into property, plant and equipment amounted to EUR 4.01 million in the three quarters of 2022 (EUR 8.97 million in the in the three quarters of 2021). The split of investments (additions) into property, plant and equipment is provided in the table below.

Investments (additions) into property, plant and equipment, EUR’000

	Land*	Buildings*	Constructions and machinery	Vehicles, equipment and other	Construction inprogress	Total
2022 I-IIIquarters	387	698	925	213	1,787	4,010
2021 I-IIIquarters	1,212	469	4,448	601	2,235	8,965

*excluding additions related with the right-of-use assets.

Despite the fact that investments in fixed assets decreased The Group is continuing the technology projects planned in 2022. In 2022, the Group plans to deliver the first batch of tractors powered by biomethane and electricity, which will start working in the fields in the spring of 2023 already. At the beginning of 2023, work on the infrastructure will be completed and biomethane production will start. The Group is continuing work to develop specialised feed technology to reduce methane emissions from cattle during digestion.

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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III. FINANCIAL STATEMENTS

Consolidated balance sheet

ASSETS Notes Non-current assets Property, plant and equipment 4 Right-of-use assets 4 Intangible assets Long term receivables at amortized cost 7 Investments accounted for using equity method Deferred tax asset Biological assets 5 Total non-current assets Current assets Biological assets 5 Inventory 6 Trade receivables advance payments and other receivables 7 Cash and cash equivalents Assets held for sale Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Capital and reserves Share capital 2 Share premium 2 Revaluation reserve 2 Legal reserve 2 Reserve for share-based payments to employees 2 Retained earnings Equity attributable to equity holders of the parent Non-controlling interest Total equity Non-current liabilities Borrowings 8 Lease liabilities 9 Deferred grant income Deferred tax liability Total non-current liabilities Current liabilities Current portion of non-current borrowings 8 Current portion of non-current lease liabilities 9 Current borrowings 8 Trade payables Other payables and current liabilities Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES	30 September 2022 unaudited 97,821 34,912 3,510 449 57 2,089 10,096 148,934 18,545 39,649 27,350 1,375 86,919 315 87,234 236,168 66,617 6,707 10,250 2,041 2,829 (9,997) 78,447 353 78,800 59,430 38,348 2,752 1,553 102,083 843 2,070 10,697 29,405 12,270 55,285 157,368 236,168	31 December 2021 audited
		99,883 39,374 3,485 449 57 2,089 9 993
		155,330 19,398 24,096 10,894 2,446
		56,834 315
		57,149
		212,479
		65,951 6,707 10,250 2,041 3,002 (9,329)
		78,622 358
		78,980 46,115 37,641 3,105 1,553
		88,414 5,767 7,878 5,583 19,482 6,375
		45,085 133,499
		212,479

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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Consolidated statement of profit or loss and statement of other comprehensive income

Notes Revenues 10 Cost of sales 10 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 GROSS PROFIT Operating expenses 11 Other income 12 Other gains/(losses) 13 OPERATING PROFIT Finance costs 14 PROFIT (LOSS) BEFORE INCOME TAX Income tax expense NET PROFIT / (LOSS) FOR THE PERIOD ATTRIBUTABLE TO: Shareholders of the Company Non-controlling interest STATEMENT OF OTHER COMPREHENSIVE INCOME NET PROFIT/ (LOSS) FOR THE PERIOD TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD ATTRIBUTABLE TO: Equity holders of the Company Non-controlling interest	9-month period ending 30 September	9-month period ending 30 September
	2022 unaudited 57,706 (48,659) 4,090 13,137 (9,252) 702 56 4,643 (5,267) (624) - (624) (619) (5) (624) (624) (624) (619) (5)	2021 unaudited
		54,903 (47,354) (5,850)
		1,699 (8,218) 447 35
		(6,037) (4,396)
		(10,433)
		-
		(10,433)
		(10,399) (34)
		(10,433) (10,433)
		(10,433)
		(10,399) (34)

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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Consolidated statement of changes in equity

Balance as of 31 December 2020 (audited) *Comprehensive income* Net profit (loss) for the period *Other comprehensive income* Revaluation of land, net of tax *Total comprehensive income* Share-based payments Transfer to legal reserve Transfer to reserve to provide shares for employees Balance as of 31 December 2021 (audited) *Comprehensive income* Net profit (loss) for the period *Other comprehensive income* Revaluation of land (net of tax) *Total comprehensive income* Share-based payments Transfer to legal reserve Transfer to reserve to provide shares for employees Balance as of 30 September 2022 (unaudited)	Share capital Revaluation reserve Legal reserve Retained earnings Equity attributable to the shareholders of the company Non- controlling interest Total Share premium Reserve to provide shares for employees
	65,951 6,707 9,213 2,509 1,834 6,237 92,450 366 92,816
	- - - - - (15,427) (15,427) (8) (15,435) - - 1,038 - - - 1,038 - 1,038
	- - *1,038* - - *(15,427)* *(14,389)* *(8)* *(14,397)*
	- - - - - 562 562 - 562 - - - - 207 (207) - - - - - - 493 - (493) - - -
	65,951 6,707 10,251 3,002 2,041 (9,328) 78,623 358 78,980
	- - - - - (619) (619) (5) (624) - - - - - - - - -
	- - - - - *(619)* *(619)* *(5)* *(624)*
	- - - - - 443 443 - 443 - - - - - - - - - 666 - - (173) - (493) - - -
	66,617 6,707 10,251 2,829 2,041 (9,997) 78,447 353 78,800

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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Consolidated statement of cash flows

Notes Cash flows from /(to) operating activities Net profit (loss) before income tax and non-controlling interest *Adjustments for non-cash expenses (income) items and other* *adjustments* Depreciation expenses (PP&E) 4 Depreciation expenses (ROUassets) 4 Amortization expenses Share-based payments to employees expenses 11 (Gain) loss on sales of non-current assets 13 Provisions for possible credit loss 11 Write-offs of bad debts 11 Write-offs of inventory and biological assets Interest and fines income 12 Finance cost 14 Finance costs related to ROU assets 14 Loss (gain) on changes in fair value of biological assets 10 Grants related to assets, recognized as income Changes in working capital (Increase) decrease in biological assets (Increase) decrease in trade receivables and prepayments (Increase) decrease in inventory (Decrease) increase in trade and other payables Interest paid, netto Net cash flows from /(to) operating activities Cash flows from /(to) investing activities Purchase of property, plant and equipment Purchase of non-current intangible assets Proceeds from sale of PP&E Grants related to assets, received from NPA Other loans repaid Other loans granted Net cash flows from/(to) investing activities Cash flows from /(to) financing activities Bonds Repayment of bank borrowings Proceeds from borrowings Repayment of other borrowings Lease payments Net cash flows from/(to) financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period*	9-month period ending 30 September	9-month period ending 30 September
	2022 unaudited (624) 5,844 4,462 8 443 (56) 169 155 1,661 (199) 3,342 1,925 (4,090) (353) 4,840 (16,780) (17,214) 12,966 (3,501) (1,994) (5,495) (4,010) (33) 285 - - - (3,758) 6,000 (2,345) 9,628 - (5,101) 8,182 (1,071) 2,446 1,375	2021 unaudited

		(10,433) 5,823 4,563 2 422 (35) - - 2,951 (267) 2,811 1,585 5,850 (402) (4,363) (12,155) (1,012) 10,327
		5,667 (1,518)
		4,149
		(5,330) (2) 138 380 50 (36)
		(4,800)
		- (9,751) 15,785 (49) (6,509)
		(524)
		(1,174) 2,541 1,367



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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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IV. EXPLANATORY NOTES

1. Basis of the preparation

The accompanying interim financial information for the 9-month period ending 30 September 2022, has been prepared in accordance with IAS 34, ‘Interim financial reporting’. This financial information should be read in conjunction with the annual financial statements for the year ending 31 December 2021 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 9-month period ending 30 September 2022 are not audited. Financial statements for the year ending 31 December 2021 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 2021.

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 2021 was 6%. The incremental borrowing remained unchanged in 2022.

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

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the use of a single discount rate to a portfolio of leases with reasonably similar characteristics;

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reliance on previous assessments on whether leases are onerous;

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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);

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the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application;

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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:

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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 price per tonne. Contracted average sales prices are used for fair value estimation adjusted according to the development in the market.
Forecasted total cost per ha. Average historical cost levels after evaluating the current situation.
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)

Fair value of milking cows is valued by 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 4 years was. Current cow herd has an estimated working life of 1 to 4 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.

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.

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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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 is excluded from the ratio.

There are option agreements which are signed with a special condition – that the receivers do not need to fulfil 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 share premium of the Company

The share capital of AUGA group AB as of 30 September 2022 was EUR 66,617 thousand (31 December 2021: EUR 65,951 thousand). The share capital is divided into 229,714,102 ordinary shares (31 December 2021: 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 30 September 2022 amounted to EUR 6,707 thousand (31 December 2021: EUR 6,707 thousand).

Shareholders

Total number of shareholders on 30 September 2022 was 2,588 and on 31 December 2021 it was 2,528.

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

Entity / person	30 September 2022 Number of shares % owned	30 September 2022 Number of shares % owned	31 December 2021	31 December 2021
	Number of shares		Number of shares	% owned
Baltic Champs Group UAB(identification code: 145798333; address: Poviliškiai v., Šiauliai region mun., Lithuania) European Bank for Reconstruction and Development(identification code: EBRDGB2LXXXX; address: One Exchange Square, London EC2A 2JN, UK) Žilvinas Marcinkevičius Other shareholders Total	126,686,760 19,810,636 15,919,138 67,297,568 229,714,102	55.15 8.62 6.93 29.30 100.00	126,686,760 19,810,636 15,919,138 64,999,718 227,416,252	55.71 8.71 7.00 28.58
				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 30 September 2022:

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 55.15% 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 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 2,041 thousand as of 30 September 2022 (31 December 2021: EUR 2,041 thousand).

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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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 2021. Revaluation reserve as of 30 September 2022 amounted to EUR 10,250 thousand (31 December 2021: EUR 10,250 thousand).

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 30 September 2022 amounted to EUR 2,829 thousand (31 December 2021: EUR 3,002 thousand).

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 Total reserve as of 31 December 2020 Shares allocated to employees based on option agreements Unallocated shares Total reserve as of 31 December 2021 Shares allocated to employees based on option agreements Unallocated shares Total reserve as of 30 September 2022	Number of shares, units 8,651,724 7,167,391 3,184,333 10,351,724 6,259,716 3,494,158 9,753,874	Value, EUR thousand
		2,509
		2,079 923
		3,002
		1,816 1,013
		2,829

3. The structure of the Group

As of 30 September 2022, the Group consisted of the Company and 126 subsidiaries (31 December 2021: 127). Detailed list of all subsidiaries in 2022 and 2021 is provided below.

No.	Name of subsidiary	Legal form	Legal entity code	Registered office	Profile	Group ownership interest, %	Group ownership interest, %
						30/09/22	31/12/21
1. Baltic Champs UAB 4 302942064 Šiaulių region, Poviliškių v., 15 A 2. AVG Investment UAB 4 300087691 Vilniaus mun., Vilnius, Konstitucijos av. 21C G 3. AWG Investment 1 UAB 4 301745765 Vilniaus mun., Vilnius, Konstitucijos av. 21C G 4. AWG Investment 2 UAB 4 301807590 Vilniaus mun., Vilnius, Konstitucijos av. 21C G 5. Agross UAB 4 301807601 Vilniaus mun., Vilnius, Konstitucijos av. 21C H 6. Grain Lt UAB 4 302489354 Vilniaus mun., Vilnius, Konstitucijos av. 21C H 7. AgroGis UAB 4 302583978 Vilniaus mun., Vilnius, Konstitucijos av. 21C D 8. Agro Management Team UAB 4 302599498 Jonavos region, Bukonių v., Lankesos st. 2 E 9. Agrotechnikos centras UAB 4 302589187 Jonavos region, Bukonių v., Lankesos st. 2 F 10. AUGA trade UAB 4 302753875 Jonavos region, Bukonių v., Lankesos st. 2 H 11. Agricultural entity Žemės fondas 1 300558595 Vilniaus mun., Vilnius, Konstitucijos av. 21C E 12. Žemės vystymo fondas 6 UAB 4 300589719 Vilniaus mun., Vilnius, Smolensko st. 10 E 13. Žemės vystymo fondas 9 UAB 4 300547638 Jonavos region, Bukonių v., Lankesos st. 2 E 14. Žemės vystymo fondas 10 UAB 4 301522723 Jonavos region, Bukonių v., Lankesos st. 2 E 15. Žemės vystymo fondas 20 UAB 4 300887726 Jonavos region, Bukonių v., Lankesos st. 2 B 16. AUGA Grūduva UAB 4 174401546 Šakių region, Gotlybiškių v., A 17. Agricultural entity AUGA Spindulys 1 171330414 Radviliškio region, Vaitiekūnų v., Spindulio st. 13 A 18. Agricultural entity AUGA Smilgiai 1 168548972 Panevėžio region, Smilgių mstl. Panevėžio st. 23-1 A 19. Agricultural entity AUGA Skėmiai 1 171306071 Radviliškio region, Skėmių v., Kėdainių st. 36 A 20. Agricultural entity AUGA Nausodė 1 154179675 Anykščių region, Kirmėlių v., A 21. Agricultural entity AUGA Dumšiškės 1 172276179 Raseinių region, Paraseinio v., A 22. Agricultural entity AUGA Žadžiūnai 1 175706853 Šiaulių region, Žadžiūnų v., Gudelių st. 30-2 A						100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 97,41% 95,00% 95,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 98,98% 98,97% 99,99% 99,99% 100,00% 100,00% 100,00% 99,97% 99,94% 99,93% 99,38% 99,88% 99,81% 99,81%

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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No.	Name of subsidiary	Legal form	Legal entity code	Registered office	Profile	Group ownership interest, %	Group ownership interest, %
						30/09/22	31/12/21
23. Agricultural entity AUGA Mantviliškis 1 161274230 Kėdainių region, Mantviliškio v., A 24. Agricultural entity AUGA Alanta 1 167527719 Molėtų region, Kazlų v., Skiemonių st. 2A A 25. Agricultural entity AUGA Eimučiai 1 175705032 Šiaulių region, Žadžiūnų v., Gudelių st. 30-2 A 26. Agricultural entity AUGA Vėriškės 1 171305165 Radviliškio region, Vėriškių v., A 27. Agricultural entity AUGA Želsvelė 1 165666499 Marijampolės mun., Želsvos v., A 28. Agricultural entity AUGA Lankesa 1 156913032 Jonavos region, Bukonių v., A 29. Agricultural entity AUGA Kairėnai 1 171327432 Radviliškio region, Kairėnų v., A 30. Agricultural entity AUGA Jurbarkai 1 158174818 Jurbarko region, Klišių v., Vytauto Didžiojo st. 99 A 31. Agricultural entity AUGA Gustoniai 1 168565021 Panevėžio region, Gustonių v., M. Kriaučiūno st. 15 A 32. Cooperative entity Siesarčio ūkis 3 302501098 Šakių region, Gotlybiškių v., Mokyklos st. 18 A 33. Cooperative entity Kašėta 3 302501251 Jonavos region, Bukonių v., Lankesos st. 2 A 34. Agricultural entity Gustonys 1 302520102 Panevėžio region, Gustonių v., M. Kriaučiūno st. 15 E 35. Agricultural entity Skėmių pienininkystės centras 1 302737554 Radviliškio region, Skėmių v., Alyvų st. 1 A 36. Cooperative entity Agrobokštai 3 302485217 Vilniaus mun., Vilnius, Konstitucijos av. 21C A 37. Cooperative entity Dotnuvėlės valdos 3 302618614 Šiaulių region, Žadžiūnų v., Gudelių st. 30-2 A 38. Cooperative entity Nevėžio lankos 3 302618596 Kėdainių region, Mantviliškio v., Liepos 6-osios st. 60 A 39. Cooperative entity Radviliškio kraštas 3 302618742 Radviliškio region, Skėmių v., Kėdainių st. 13 A 40. Cooperative entity Šventosios pievos 3 302618201 Raseinių region, Kalnujų mstl. Žieveliškės st. 1 A 41. Cooperative entity Kairių ūkis 3 302615194 Panevėžio region, Gustonių v., M. Kriaučiūno st. 15 A 42. Cooperative entity Šiaurinė valda 3 302615187 Šiaulių region, Poviliškių v., 15 A 43. Cooperative entity Šušvės žemė 3 302618767 Kelmės region, Pašiaušės v., Vilties st. 2 A 44. Cooperative entity Žalmargėlis 3 303145954 Vilniaus mun., Vilnius, Smolensko st. 10-100 A 45. Cooperative entity Juodmargėlis 3 303159014 Raseinių region, Kalnujų mstl. Žieveliškės st. 1 A 46. Cooperative entity Agromilk 3 302332698 Raseinių region, Kalnujų mstl. Žieveliškės st. 1 A 47. Cooperative entity Purpurėja 3 302542337 Širvintų region, Širvintų v., Zosinos st. 7 A 48. Bukonių ekologinis ūkis UAB 4 302846621 Vilniaus mun., Vilnius, Konstitucijos av. 21C A 49. Agrosaulė 8 UAB 4 302846105 Vilniaus mun., Vilnius, Smolensko st. 10-100 G 50. Pasvalys distr., Pušalotas reclamation infrastructure users association 2 302465563 Pasvalio region, Diliauskų v., Diliauskų st. 23 A 51. Skėmiai reclamation infrastructure users association 2 303170256 Šiaulių region, Žadžiūnų v., Gudelių st. 30-2 A 52. Vaitiekūnai reclamation infrastructure users association 2 303170306 Šiaulių region, Žadžiūnų v., Gudelių st. 30-2 A 53. Association Grūduvos melioracija 2 302567116 Šakių region, Gotlybiškių v., Mokyklos st. 2 A 54. Pauliai reclamation infrastructure users association 2 303169909 Raseinių region, Gėluvos v., Dvaro st. 30 A 55. Nausode reclamation infrastructure users association 2 304219592 Vilniaus mun., Vilnius, Konstitucijos av. 21C A 56. Traktorių nuomos centras UAB 4 302820808 Jonavos region, Bukonių v., Lankesos st. 2 A 57. Traktorių nuomos paslaugos UAB 4 302820797 Jonavos region, Bukonių v., Lankesos st. 2 A 58. Arnega UAB 4 302661957 Jonavos region, Bukonių v., Lankesos st. 2 A 59. AgroSchool OU 6 12491954 Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133 G 60. Public institution AgroSchool 5 303104797 Vilniaus mun., Vilnius, Smolensko st. 10-100 C 61. AUGA Ramučiai UAB *4 302854479 Akmenės region, Ramučių v., Klevų st. 11 A						99,94% 99,94% 99,99% 99,99% 99,24% 99,24% 99,93% 99,93% 99,86% 99,86% 96,91% 96,91% 98,47% 98,47% 98,47% 98,46% 100,00% 100,00% 99,44% 99,44% 99,44% 99,44% 100,00% 100,00% - 48,67% 97,94% 97,94% 99,22% 99,22% 96,51% 96,51% 98,67% 98,67% 96,36% 96,36% 98,68% 98,68% 96,15% 96,15% 98,43% 98,43% 98,32% 98,32% 99,35% 99,35% 96,28% 96,28% 99,53% 99,53% 100,00% 100,00% 100,00% 100,00% 48,67% 48,67% 48,67% 48,67% 48,67% 48,67% 65,81% 65,81% 100,00% 100,00% 70,74% 70,74% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 50,00% 50,00% 100,00% 100,00%

Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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No.	Name of subsidiary	Legal form	Legal entity code	Registered office	Profile	Group ownership interest, %	Group ownership interest, %
						30/09/22	31/12/21
62. AUGA Luganta UAB 4 300045023 Kelmės region, Pašiaušės v., A 63. eTime invest UAB 4 300578676 Vilniaus mun., Vilnius, Saltoniškių st. 29 G 64. ŽVF Projektai UAB 4 300137062 Jonavos region, Bukonių v., Lankesos st. 2 E 65. Agricultural entity Alantos ekologinis ūkis 1 303324747 Molėtų region, Kazlų v., Skiemonių st. 2A A 66. Agricultural entity Dumšiškių ekologinis ūkis 1 303324722 Raseinių region, Paraseinio v., Paraseinio st. 2 A 67. Agricultural entity Eimučių ekologinis ūkis 1 303324715 Šiaulių region, Žadžiūnų v., Gudelių st. 30-2 A 68. Agricultural entity Grūduvos ekologinis ūkis 1 303324804 Šakių region, Gotlybiškių v., Mokyklos st. 2 A 69. Agricultural entity Jurbarkų ekologinis ūkis 1 303325361 Jurbarko region, Klišių v., Vytauto Didžiojo st. 99 A 70. Agricultural entity Kairėnų ekologinis ūkis 1 303325774 Radviliškio region, Vaitiekūnų v., Spindulio st. 13-2 A 71. Agricultural entity Lankesos ekologinis ūkis 1 303325710 Jonavos region, Bukonių v., Lankesos st. 2 A 72. Agricultural entity Mantviliškio ekologinis ūkis 1 303325703 Kėdainių region, Mantviliškio v., Liepos 6-osios st. 60 A 73. Agricultural entity Nausodės ekologinis ūkis 1 303325781 Anykščių region, Nausodės v., Nausodės st. 55 A 74. Agricultural entity Skėmių ekologinis ūkis 1 303325692 Radviliškio region, Skėmių v., Kėdainių st. 13 A 75. Agricultural entity Smilgių ekologinis ūkis 1 303325824 Panevėžio region, Smilgiai, Panevėžio st. 23-1 A 76. Agricultural entity Spindulio ekologinis ūkis 1 303325817 Radviliškio region, Vaitiekūnų v., Spindulio st. 13-2 A 77. Agricultural entity Vėriškių ekologinis ūkis 1 303325849 Radviliškio region, Skėmių v., Kėdainių st. 13 A 78. Agricultural entity Žadžiūnų ekologinis ūkis 1 303325870 Šiaulių region, Žadžiūnų v., Gudelių st. 30-2 A 79. Agricultural entity Želsvelės ekologinis ūkis 1 303325856 Marijampolės mun., Želsvos v., Želsvelės st. 1 A 80. Prestviigi OU 6 12654600 Harju maakond, Tallinn, Kesklinna linnaosa, Lai tn 32-8, 10133 G 81. Cooperative entity Ganiklis 3 303429417 Radviliškio region, Skėmių v., Alyvų st. 1-3 A 82. Cooperative entity Ganiavos gėrybės 3 303429431 Radviliškio region, Skėmių v., Alyvų st. 1-3 A 83. Cooperative entity Žemėpačio pieno ūkis 3 303432388 Raseinių region, Ariogalos sen. Gėluvos v., Dvaro st. 30 A 84. Cooperative entity Žemynos pienelis 3 303427989 Raseinių region, Ariogalos sen. Gėluvos v., Dvaro st. 30 A 85. Cooperative entity Lygiadienio ūkis 3 303428087 Radviliškio region, Skėmių v., Alyvų st. 1-3 A 86. Cooperative entity Laumės pieno ūkis 3 303427996 Raseinių region, Ariogalos sen. Gėluvos v., Dvaro st. 30 A 87. Cooperative entity Medeinos pienas 3 303428112 Raseinių region, Ariogalos sen. Gėluvos v., Dvaro st. 30 A 88. Cooperative entity Gardaitis 3 303429381 Radviliškio region, Skėmių v., Alyvų st. 1-3 A 89. Cooperative entity Dimstipatis 3 303429424 Mažeikių aplinkl. 9, Naikių v., Mažeikių apylinkės sen., Mažeikių region, A 90. Cooperative entity Aušlavis 3 303429456 Radviliškio region, Skėmių v., Alyvų st. 1-3 A 91. Cooperative entity Austėjos pieno ūkis 3 303428094 Mažeikių aplinkl. 9, Naikių v., Mažeikių apylinkės sen., Mažeikių region, A 92. Cooperative entity Aitvaro ūkis 3 303429374 Radviliškio region, Skėmių v., Alyvų st. 1-3 A 93. Cooperative entity Giraičio pieno ūkis 3 303429399 Mažeikių aplinkl. 9, Naikių v., Mažeikių apylinkės sen., Mažeikių region, A 94. Fentus 10 GmbH 6 HRB106477 StraBe des 17 Juni 10b 10623 Berlin, Germany G 95. Norus 26 AG 6 HRB109356B StraBe des 17 Juni 10b 10623 Berlin, Germany G 96. LT Holding AG 6 HRB109265B StraBe des 17 Juni 10b 10623 Berlin, Germany G 97. KTG Agrar UAB 4 300127919 Vilniaus mun., Vilnius, Konstitucijos av. 21C A 98. Agrar Raseiniai UAB 4 300610316 Raseinių region, Ariogalos sen. Gėluvos v., Dvaro st. 30 A 99. AUGA Mažeikiai UAB 4 300610348 Mažeikių av. 9, Naikių v., Mažeikių region, **A						100,00% 100,00% 100,00% 100,00% 52,62% 52,62% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 98,09% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00%

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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No.	Name of subsidiary	Legal form	Legal entity code	Registered office	Profile	Group ownership interest, %	Group ownership interest, %
						30/09/22	31/12/21
100. PAE Agrar UAB 4 300867691 Raseinių region, Gėluvos v., Dvaro st. 30 A 101. Delta Agrar UAB 4 300868875 Raseinių region, Gėluvos v., Dvaro st. 30 A 102. KTG Grūdai UAB 4 302637486 Raseinių region, Gėluvos v., Dvaro st. 30 A 103. KTG Eko Agrar UAB 4 300510650 Raseinių region, Gėluvos v., Dvaro st. 30 A 104. Agronita UAB 4 300132574 Raseinių region, Gėluvos v., Dvaro st. 30 A 105. Agronuoma UAB 4 303204954 Raseinių region, Gėluvos v., Dvaro st. 30 A 106. VL Investment Vilnius 12 UAB 4 303205611 Raseinių region, Gėluvos v., Dvaro st. 30 A 107. Agrar Ašva UAB 4 301608542 Raseinių region, Gėluvos v., Dvaro st. 30 A 108. Agrar Varduva UAB 4 301608791 Raseinių region, Gėluvos v., Dvaro st. 30 A 109. Agrar Seda UAB 4 301608777 Raseinių region, Gėluvos v., Dvaro st. 30 A 110. Agrar Kvistė UAB 4 302308067 Raseinių region, Gėluvos v., Dvaro st. 30 A 111. Agrar Luoba UAB 4 302308035 Raseinių region, Gėluvos v., Dvaro st. 30 A 112. Agrar Gaja UAB 4 302594412 Raseinių region, Gėluvos v., Dvaro st. 30 A 113. Agrar Ariogala UAB 4 301626540 Raseinių region, Gėluvos v., Dvaro st. 30 A 114. Agrar Girdžiai UAB 4 301621568 Raseinių region, Gėluvos v., Dvaro st. 30 A 115. Agrar Vidauja UAB 4 301622531 Raseinių region, Gėluvos v., Dvaro st. 30 A 116. Agrar Raudonė UAB 4 302309532 Raseinių region, Gėluvos v., Dvaro st. 30 A 117. Agrar Venta UAB 4 302307855 Raseinių region, Gėluvos v., Dvaro st. 30 A 118. Agrar Nerys UAB 4 302594063 Raseinių region, Gėluvos v., Dvaro st. 30 A 119. Agrar Gėluva UAB 4 302312133 Raseinių region, Gėluvos v., Dvaro st. 30 A 120. Agrar Betygala UAB 4 302312222 Raseinių region, Gėluvos v., Dvaro st. 30 A 121. Agrar Dubysa UAB 4 302312215 Raseinių region, Gėluvos v., Dvaro st. 30 A 122. Agrar Pauliai UAB 4 302312165 Raseinių region, Gėluvos v., Dvaro st. 30 A 123. Agrar Mituva UAB 4 302312172 Raseinių region, Gėluvos v., Dvaro st. 30 A 124. AUGA Raseiniai UAB 4 304704364 Raseinių region, Kalnujai, Žieveliškės st. 1 A 125. Tėvynės žemelė UAB 4 303301428 Antano Tumėno st. 4, Vilniaus mun., Vilnius G 126. Tėviškės žemelė UAB 4 303207199 Antano Tumėno st. 4, Vilniaus mun., Vilnius E 127. Cooperative entity Grybai LT 3 302765404 Žibalų st. 37, Širvintos I						100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 100,00% 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

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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4. Property, plant and equipment

Land	Buildings	Constructions and machinery	Vehicles, equipment and other property, plant and equipment	Construction in progress	Total
62,279 11,539 (2) 1,221 (6,351) -	41,448 493 (155) - (2,535) -	23,489 4,397 (123) - (4,470) (314)	2,345 1,116 (34) - (938) 1,651	2,991 2,863 - - - (1,653)	132,552 20,408 (314) 1 221 (14,295) (315)
68,686	39,251	22,978	4,140	4,201	139,257
387 (21) - (4,363) -	698 - - (1,957) 470	925 (137) 3 (3,252) 47	213 (8) - (734) -	1,787 (66) - - (517)	4,010 (232) 3 (10,306) -
64,689	38,462	20,565	3,611	5,406	132,732
73,493 86,251 86,617	57,529 57,867 59,035	45,813 49,772 50,611	6,177 8,910 9,115	2,991 4,201 5,406	186,004 207,001 210,783
(11,214) (17,565) (21,928)	(16,081) (18,616) (20,572)	(22,324) (26,794) (30,046)	(3,832) (4,770) (5,504)	- - -	(53,452) (67,745) (78,051)

62,279	41,448	23,489	2,345	2,991	132,552
68,686	39,251	22,978	4,140	4,201	139,257
64,689	38,462	20,565	3,611	5,406	132,733

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

Right of use assets Acquisition cost Additions Less: accumulated depreciation Carrying amount Right of use assets Acquisition cost Additions Disposals and write-offs Less: accumulated depreciation Carrying amount	Land	Land
	30 September 2022 31 December 2021
	56,377 46,020 - 10,357 (21,928) (17,565)
	34,449 38,812
	Buildings
	30 September 2022 965 - - (501) 463	31 December 2021 1,008 - (44) (403) 562

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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5. Biological assets

The movement of Group’s biological assets consisted of the following:

Non– current assets Current assets	Non– current assets Current assets	Non– current assets Current assets
Dairy cows Other livestock	Mushroom seedbed Crops	Total
Balance as of 31 December 2020 6,310 3,389	2,149 14,903	26,751
Direct purchases - 205 Accumulated expenses - 3,756 Transfer between groups 3,613 (3,613) Direct sales (609) (290) Harvest - - Revaluation (2,167) (239) Write-offs (257) (107)	- - 27,833 36,180 - - - - (27,692) (30,820) - (3,155) - -	205 67,769 - (899) (58,512) (5,561) (364)
Balance as of 31 December 2021 6,890 3,103	2,290 17,108	29,391
Direct purchases - - Accumulated expenses - 3,958 Transfer between groups 3,220 (3,220) Direct sales (1,414) (666) Harvest - - Revaluation (1,282) (190) Write-offs (256) (47)	- - 22,286 33,600 - - - - (22,286) (40,318) - 5,865 - -	- 59,844 - (2,080) (62,604) 4,393 (303)
Balance as of 30 September 2022 7,158 2,938	2,290 16,255	28,641

6. Inventory

As of September 30 the Group’s inventories consisted of the following:

Finished goods (agricultural produce) Raw materials Total Less: Revaluation to net realizable value of agricultural produce Carrying amount	As of 30 September 2022 33,363 7,822	As of 31 December 2021
		18,828 6,804
	41,185	25,632
	(1,536) 39,649	(1,536)
		24,096

7. Receivables and advance payments

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

Trade receivables VAT receivable Receivables from National Paying Agency Accounts receivable from private individuals Other receivables Prepayments and deferred expenses Less: loss allowance Total trade accounts receivable, net Non-current receivables, gross Less: loss allowance Total	As of 30 September 2022 12,386 1,359 9,266 144 3,843 3,758 (3,406) 27,350 450 (1) 27,799	As of 31 December 2021
		4,656 641 1,455 83 3,582 3,714
		(3,237)
		10,894
		450 (1)
		11,343

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

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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8. Financial liabilities

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

Borrowings from banks Mushroom growing companies FMCG companies Agricultural entities Parent company Other borrowings Investment fund for purchased land Bonds Total Less:amounts, payable within one year (according to agreements) Total long-term borrowings The long-term borrowings and payables are repayable as follows: Financial liabilities to banks and bondholders Within second year Within third and fourth year After fifth year and later Total The Group’s short-term borrowings were the following: Borrowings from banks Mushroom growing companies Grain selling entity Total short-term borrowings	As of 30 September 2022 6,614 875 23,115 4,081 253 25,335 60,273 (843) 59,430 As of 30 September 2022 11,526 41,578 6,326 59,430 As of 30 September 2022 2,400 8,297 10,697	As of 31 December 2021 7,590 1,007 21,189 2,728 253 19,114 51,882 (5,767) 46,115 As of 31 December 2021
		9,853 35,939 323
		46,115
		As of 31 December 2021
		2,400 3,183
		5,583

Short-term loans from banks as of 30 September 2022 include EUR 10.697 thousand credit-line facilities (2021: EUR 5.583 thousand).

9. Leases

The Group’s leases consisted of the following:

Lease liabilities Lease liabilities related to right-of-use assets Lease liabilities related to other assets Total Less: amounts payable within one year Lease liabilities related to right-of-use assets Lease liabilities related to other assets Total Total long-term leases**	As of 30 September 2022 35,242 5,175 40,418 1,327 743 2,070 38,348	As of 31 December 2021
		39,114 6,406
		45,519 5,198 2,680
		7,878
		37,641

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

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

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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10. Results of business segments

CROP GROWING SEGMENT
a) Harvest of agricultural produce 9-month period ending 30 September 2022 9-month period ending 30 September 2021
Total cultivated land, ha 38,525 39,139 Wheat 11,693 10,440 Legumes 6,785 8,056 Other cash crops 11,628 12,397 Forage Crops 7,676 6,773 Fallow 743 1,473 Average harvest yield, t/ha Wheat 3,41 3,29 Legumes 2,32 1,10 Other cash crops - - Forage Crops - - Total fair value of harvest, EUR'000 40,318 33,953 Wheat 16,090 8,249 Legumes 8,893 3,067 Other cash crops 12,742 16,693 Forage Crops 2,593 5,946 Total production cost of harvest, EUR'000 (32,119) (35,308) Wheat (11,587) (7,957) Legumes (5,310) (6,675) Other cash crops (12,629) (14,731) Forage Crops (2,593) (5,946)
Total gain (loss) on revaluation of biological assets at fair value, EUR’000 8,199 (1,354)*
Gain (loss) on revaluation of biological assets at fair value recognized in previous periods, EUR'000* (2,334) (2,018)
Gain (loss) on revaluation of biological assets recognized in reporting period, EUR'000* 5,865 (3,372)

*Estimated gain (loss) on recognition of cash crops at fair value as of 30 September 2022. For more information, please see management report’s section 2.2.

b) Sales of agricultural produce	9-month period ending	9-month period ending
	30 September 2022	30 September 2021
Total revenue of sold agricultural produce, EUR'000	18,714	18,407
Total cost of sold agricultural produce*, EUR'000	(17,729)	(20,126)
Total inventory write-offs, EUR'000	(948)	(2,384)
Result of internal transactions, EUR'000	(1,000)	n/a
Result of sales of agriculturalproduce, EUR'000	(963)	(4,103)

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

c) Agricultural subsidies	9-month period ending	9-month period ending
	30 September 2022	30 September 2021
Direct subsidies, EUR'000	3,743	3,895
Organic farming subsidies, EUR'000	3,319	3,084
Total subsidies, EUR'000	7,062	6,979
Gross profit of crop growing segment, EUR'000 (a+b+c)	11,964	(496)
Depreciation included in the harvest of agricultural produce, EUR’000	3,298	2,829

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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DAIRY SEGMENT 9-month period ending 30 September 2022 9-month period ending 30 September 2021	DAIRY SEGMENT 9-month period ending 30 September 2022 9-month period ending 30 September 2021	DAIRY SEGMENT 9-month period ending 30 September 2022 9-month period ending 30 September 2021
Total quantity sold, tonnes 20,249 20,168 Non-organic milk, tonnes 803 456 Organic milk, tonnes 18,502 18,656 Dairy commodities, tonnes 332 502 Cattle, tonnes 612 554 Total revenues of dairy segment, EUR'000 12,318 10,160 Non-organic milk, EUR'000 410 156 Organic milk, EUR'000 9,601 7,735 Dairy commodities, EUR'000 1,264 1,623 Cattle, EUR'000 1,043 647 Total cost of dairy segment, EUR'000 (11,019) (9,867) Milk, EUR'000 (8,756) (7,722) Dairy commodities, EUR'000 (1,220) (1,498) Cattle, EUR'000 (1,043) (647) Revaluation of biological assets, EUR’000 (1,775) (2,478) Total subsidies, EUR’000 2,143 2,356
Gross profit of dairy segment, EUR'000 1,667 172
Depreciation included in cost of dairy segment sales, EUR’000 492 475

MUSHROOM SEGMENT	9-month period ending 30 September 2022	9-month period ending 30 September 2021
Total quantity sold, tonnes 8,834 9,072 Non-organic mushrooms, tonnes 8,173 8,542 Organic mushrooms, tonnes 661 530 Total revenues from mushroom sales, EUR'000 20,843 21,101 Non-organic mushrooms, EUR'000 18,556 19,136 Organic mushrooms, EUR'000 2,287 1,965 Total cost of mushrooms sold, EUR'000 (22,352) (20,708) Non-organic mushrooms, EUR'000 (20,700) (19,389) Organic mushrooms, EUR'000 (1,651) (1,319) Total revenues from sales of mushroom seedbed, EUR'000 327 360 Total cost from sales of mushroom seedbed, EUR'000 (327) (196)
Gross profit of mushroom growing segment, EUR'000 (1,509) 555
Depreciation included in cost of mushroom sales, EUR’000 1,208 1,247
FAST-MOVING CONSUMER GOODS 9-month period ending 30 September 2022 9-month period ending 30 September 2021
Total revenue from fast-moving consumer goods sales, EUR'000 5,504 4,876 Total cost of fast-moving consumer goods, EUR'000 (4,489) (3,409)
Gross profit of fast-moving consumer goods segment, EUR'000 1,015 1,467
Depreciation included in cost of sales of fast-moving consumer goods, EUR’000 258 267

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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11. Operating expenses

Operating expenses breakdown by type of expenses was the following:

Payroll and social security expenses Share based payments amortization Depreciation PP&E, ROU assets and amortization of IA Consultations and business plan preparations Insurance and tax expense Selling expenses Fuel costs Real estate registration and notaries Rent and utilities Transport costs Office administration Provisions for possible credit losses Write-offs of bad debts Other expenses Total	9-month period ending 30 September	9-month period ending 30 September
	2022 3,941 443 663 162 578 1,034 252 74 296 210 462 169 155 813 9,252	2021
		3,662 422 604 168 433 1,035 181 94 285 226 422 - - 686
		8,218

In April 2019 the Company approved Employee Option Plan therefore 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 in profit (loss) statement and in equity on balance sheet.

12. Other income

Other income breakdown by type was the following:

Interest and fines income Insurance benefits Other income (expenses) Total	9-month period ending 30 September	9-month period ending 30 September
	2022 199 45 458 702	2021
		267 103 77
		447

13. Other gains/(losses)

Other gains/(losses) breakdown by type was the following:

Gain (loss) on sale of investment property Gain (loss) from sale of property, plant and equipment Gain (loss) from sale of subsidiaries Total	9-month period ending 30 September	9-month period ending 30 September
	2022 - 56 - 56	2021
		- 35 -
		35

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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

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14. Financial expenses

Financial expenses breakdown by type was the following:

Bank interest expenses Bond interest expenses Leasing and other financial expenses Lease and other finance costs (excluding lease related to acquisition of ROU assets) Currency exchange differences Fair value change of derivatives Other financial expenses Total	9-month period ending 30 September	9-month period ending 30 September
	2022 1,329 1,343 1,925 543 (7) 1 135 5,267	2021
		1,115 1,142 1,585 403 70 - 81
		4,396

15. Subsequent events January – November 2022

The Company informs of all material events over the CNS (Company News System) of NASDAQ Vilnius.

Announcement Announcement header date 2022.11.24 AUGA group, AB will organise an Investor Conference Webinar to introduce unaudited financial results for the 9 months of 2022 2022.11.15 Regarding the meeting of bondholders convened by UAB AUDIFINA 2022.09.05 AUGA group, AB presentation of financial results for the 6 months of 2022 2022.09.01 Report on interim financial results of AUGA Group, AB for the six-month period ended 30 June 2022 2022.08.25 AUGA group, AB will organise an Investor Conference Webinar to introduce unaudited financial results for the 6 months of 2022 2022.06.22 Notification on the total number of voting rights granted by shares of AUGA group, AB and capital 2022.06.22 New wording of AUGA group, AB Articles of Association and the increase of the authorized share capital registered 2022.06.03 AUGA group, AB presentation of financial results for the 3 months of 2022 2022.06.01 Report on interim financial information of AUGA group, AB for the three-month period ended 31 March 2022 2022.05.30 AUGA Group, AB exercises the first stock options for employees 2022.05.30 AUGA Group, AB notifications on transactions of persons holding management positions 2022.05.27 AUGA group, AB will organise an Investor Conference Webinar to introduce unaudited financial results for the 3 months of 2022 2022.05.26 AUGA group, AB readies to produce first batch of biomethane and electric tractors 2022.04.29 Decisions of the Ordinary General Meeting of Shareholders of AUGA group, AB which Took Place on 29th April 2022 2022.04.21 Update: Notice on the update of questions of the agenda of the ordinary general meeting of shareholders of AUGA group, AB on 29 April 2022 by drafts of decisions and related information 2022.04.21 AUGA group, AB Notification of transactions by persons discharging managerial responsibilities 2022.04.21 AUGA group, AB progresses with its employee motivation scheme through share options 2022.04.19 AUGA group, AB Published Green Bond Report 2022.04.19 AUGA group, AB published Consolidated Annual Report 2022.04.19 Notice on the update of questions of the agenda of the ordinary general meeting of shareholders of AUGA group, AB on 29 April 2022 by drafts of decisions and related information: 2022.04.07 Notice on Convocation of the ordinary General Meeting of Shareholders of AUGA group, AB on 29 April 2022 2022.04.06 Warsaw Stock Exchange excluded from exchange trading on the GPW Main List of the shares of the AUGA group, AB 2022.03.18 AUGA group, AB and its subsidiaries signed financing agreements with KŪB Business Aid Fund and UAB Medicinos bankas

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

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

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2022.03.14 Polish Financial Supervision Authority undertook a decision on granting consent to delist the shares of AUGA group, AB, which will result in the delisting of shares from trading on the Warsaw Stock Exchange

2022.03.02 AUGA group, AB presentation of financial results for the 12 months of 2021
2022.03.01 AUGA group, AB interim information for 12-month period ending 31 December 2021
2022.02.25 AUGA group, AB will organise an Investor Conference Webinar to introduce unaudited financial results for the 12 months of 2021

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 nine-month period ended 30 September 2022, 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

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Consolidated interim financial statements for 9-month period ending 30 September 2022 (unaudited)

AI assistant

AUGA group — Interim / Quarterly Report 2022

2259_rns_2022-12-06_f16310a5-87c9-41d9-8c76-e65c43dcbdb8.pdf

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

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 2021/2022

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

Crop growing segment sales results

Agricultural subsidies and gross profit of the crop growing segment

2.3. Dairy segment overview

2.4. Mushroom segment overview

2.5. Fast-moving consumer goods (FMCG) segment

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

2.6. Operating expenses

2.7. Capital expenditures

III. FINANCIAL STATEMENTS

Consolidated balance sheet

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

Consolidated statement of profit or loss and statement of other comprehensive income

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

Consolidated statement of changes in equity

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

Consolidated statement of cash flows

IV. EXPLANATORY NOTES

1. Basis of the preparation

Critical accounting estimates and assumptions

IFRS 16, Leases

Revaluation of biological assets (crops)

Revaluation of biological assets (livestock)

Share-based payments

2. Share capital and reserves

Share capital and share premium of the Company

Shareholders

Reserves of the Company

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

3. The structure of the Group

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

COMMENTS:

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

4. Property, plant and equipment

5. Biological assets

6. Inventory

7. Receivables and advance payments

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

8. Financial liabilities

9. Leases

10. Results of business segments

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

11. Operating expenses

12. Other income

13. Other gains/(losses)

AUGA GROUP, AB Konstitucijos av. 21C, Quadrum North, LT-08130, Vilnius, Lithuania CONSOLIDATED INTERIM REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR 9-MONTH PERIOD ENDING 30 SEPTEMBER 2022

14. Financial expenses

15. Subsequent events January – November 2022

V. CONFIRMATION OF RESPONSIBLE PERSONS

More from AUGA group

AUGA group Interim / Quarterly Report 2022