AUGA group — Investor Presentation 2022

Sep 5, 2022

PRESENTATION ON THE FINANCIAL RESULTS FOR 6 MONTHS OF 2022

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PRESENTED BY

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Mindaugas Ambrasas

CFO

6M2022

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RESULTS

Sales are similar to last year's, since the 2021 harvest was sold in H1 2022.

Profitability growth is mainly attributed to the crop growing segment, due to expectations for the outcome of this season's harvest.

Profit figures show positive trend

EUR million	2022 6M	2021 6M	Variance	2020 6M
Revenue	33.99	33.13	+3%	34.69
Gross profit	12.43	8.50	+46%	8.58
Net profit	3.65	0.75	+387%	1.30
EBITDA	15.05	11.14	+35%	11.53

6M2022

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Results by segment
Crop growing

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CROP GROWING

Valuation of biological assets (crops) was done based on information at the end of Q2.

Latest developments:
- pricing – stable;
- costs – stable;
- yields – decreasing.

Weather conditions will have an affect on result, but the negative impact is likely to be much smaller than in 2021.

Autumn sowing has already started.

Result of the season can be fully evaluated after Q3 only

6M2022

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CROP GROWING

As for 31.08.2022, AUGA group contracted 76% of forecasted 2022 harvest.

If to exclude long term agreements – 69% of forecasted 2022 harvest is contracted.

Harvest of 2022 is contracted with 58% higher prices than the harvest of 2021 (excluding long term agreements).

Market trends: prices are slightly decreasing lately, significant growth YoY

Organic vs. Conventional wheat price in Germany, EUR/t

Germany, the largest EU market, is a benchmark for major organic product prices.

6M2022

Source: www.ami-informiert.de, https://www.bmel-statistik.de/

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CROP GROWING

2022 6M results

Outlook is positive for Y2022, but uncertainties remain.

Gain on revaluation was positively impacted by increasing prices.

Lower sales of 2022 due to lower harvest in Y2021.

	2022 6M	2021 6M	Variance	2020 6M
Total cultivated land, ha	38,525	39,139	-2%	39,637
EUR million	2022 6M	2021 6M	Variance	2020 6M
Total gain (loss) on revaluation of biological assets (crops)	9.62	6.53	+47%	6.38
Gain (loss) on revaluation of biological assets (crops) recognized in previous period	2.33	2.02	+15%	1.45
Gain (loss) on revaluation of biological assets (crops) recognized in current period	7.29	4.51	+62%	4.93
Sales revenue	8.85	9.48	-7%	10.83
Cost of sales	8.08	10.66	-24%	11.44
Inventory write-offs	0.76	0.43	+77%	0.69
Result of internal transactions	(0.71)	-	n/a	-
Result of sales of agricultural produce	(0.70)	(1.61)	+57%	(1.30)
Subsidies	4.70	4.62	+2%	3.71
Gross profit	11.29	7.51	+50%	7.34

6M2022

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17

Results by segment

Dairy

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DAIRY

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Milk yield increased by 0.1% in H1 2022 compared to the first half of 2021.

Milk yields fell by 4% YoY in Q2. Decision by the group: due to poor last year's harvest, there was a lack of feed ingredients. Issue to be resolved after new harvest.

Average milk price has increased by 22% since the beginning of 2022.

Milk yield and price dynamics

Milk yields, kg/cow/day

Milk price, EUR/t

Source: www.ami-informiert.de, https://www.bmel-statistik.de/, https://ec.europa.eu/agriculture/market-observatory/milk

6M2022

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6M2022

DAIRY

As for 30.06.2022 group's herd consists of 3,569 cows and 3,128 heifers and bulls, compared to 3,504 cows and 2,936 heifers and bulls a year before.

Sales revenue of the dairy segment increased by 21% YoY as a result of increased prices and growth in production.

2022 6M results

Profitable segment as a result of growing prices.

	2022 6M	2021 6M	Variance	2020 6M
Total quantity of products sold, t	13,924	13,538	+3%	13,902
Milk	13,278	12,812	+4%	13,158
Milk commodities	235	335	-30%	355
Cattle	411	391	+5%	388
EUR million	2022 6M	2021 6M	Variance	2020 6M
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Revenue	8.14	6.73	+21%	6.66
Milk	6.60	5.29	+25%	5.22
Milk commodities	0.81	1.00	-19%	1.07
Cattle	0.73	0.44	+66%	0.37
Cost of sales	7.18	6.69	+7%	6.27
Milk	5.66	5.31	+7%	4.85
Milk commodities	0.79	0.93	-15%	1.06
Cattle	0.73	0.44	+66%	0.37
Revaluation of biological assets	(1.09)	(1.81)	+40%	(1.61)
Subsidies	1.43	1.51	-5%	1.31
Gross profit	1.29	(0.27)	n/a	0.09

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Results by segment

Mushroom growing

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MUSHROOM GROWING

Production is back to acceptable levels

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The group has been facing various production challenges since the 3rd quarter of 2021.

Additional activity in Q3 - resale of forest mushrooms (160 tones were sold in 2021).

6M2022

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MUSHROOM GROWING

Increasing costs put pressure on profitability: energy and transport costs account for 17% of total COGS.

Review of product prices is challenging: the average sale price increased by 3% YoY only.

Growing costs were not transferred to product prices

6M2022
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MUSHROOM GROWING

Short term solutions:

• continuous negotiations for price changes;
• energy consumption control (had decreases by 20-24% YoY);
• energy consumption is lower in colder seasons.

Long term solutions:

• investments into renewable energy production;
• biomethane production projects currently developed by the group.

2022 6M results

Negative result affected by growing energy costs.

	2022 6M	2021 6M	Variance	2020 6M
Sold mushrooms, t	6,109	6,335	-4%	6,579
Average price (Eur/t)	2,297	2,221	+3%	2,168
EUR million	2022 6M	2021 6M	Variance	2020 6M
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Total revenue	14.28	14.33	0%	15.21
Mushroom sales revenue	14.03	14.07	0%	14.26
Compost sales revenue	0.25	0.25	0%	0.95
Cost of sale	14.62	13.74	+6%	14.15
Cost of mushrooms sold	14.36	13.59	+6%	13.22
Cost of compost sold	0.25	0.15	+67%	0.93
Gross profit	(0.33)	0.59	n/a	1.07

6M2022

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15

Results by segment

Fast-moving consumer goods (EMCG)

THREE LENTIL SOUP

ORGANIC

SMOKING THE CHEMICAL, CHEMICAL, AND CHEMICAL PRODUCTS

MAN POWER TO BE A LOT

THREE LENTIL SOUP

ORGANIC

SMOKING THE CHEMICAL, CHEMICAL AND CHEMICAL PRODUCTS

MAN POWER TO BE A LOT

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FMCG

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Inflation and logistic disruptions create challenges for projects in export markets – this year's growth plan will not be met.

Sales in export markets are becoming more seasonal - majority of sales to US market are planned for Q3.

Growing costs decreased profitability – changes in pricing should have positive effect from Q3.

2022 6M results

Growth of sales had stalled.

EUR million	2022 6M	2021 6M	Variance	2020 6M
Revenue	2.72	2.59	+5%	1.99
Cost of goods sold	2.53	1.93	+31%	1.90
Gross profit	0.19	0.66	-71%	0.09

6M2022

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6M2022

FMCG PORTFOLIO

Several products are missing due to issues in outsourced production.

Dairy products accounted for 9% of FMCG sales in H1 2021.

The group is working on relaunch of broader dairy product basket.

Challenges and opportunities with outsourced production

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RESULTS

Main factors for EBITDA change

EBITDA increased by 3.91 EUR million.

6M2022

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Other information

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OTHER INFORMATION

3 projects to be implemented / further developed in 2022

Project	Plan	Status
Biomethane infrastructure	The group is planning to operate 3 facilities by Q4 2022.	At least one of the units will start operating late this year.
Specialized feed technology	First prototype is already built and is in testing currently. Two main targets: a) improved milk yields, b) reduction of CO2 emissions.
The group is planning to start scaling of technology in it's farms if tests will be successful.	Testing phase. Further development of technology.
AUGA tractor	The group is aiming to have up to 10 tractors working in group's fields by Q4 2022. Agreement for assembling is already signed.	First batch should be completed in Q4.

6M2022
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OTHER INFORMATION

Shareholders' structure*

First realization of stock options contracts for employees.

2,297,850 shares (1.0% from total equity) were distributed.

167 current and former employees participated in the program.

6M2022

• Number of shareholders are accounted for June 30th, 2022

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OTHER INFORMATION

The share price decreased by 12% (from EUR 0.503 to EUR 0.441 per share) from the beginning of 2022 to 31st of August 2022. OMX Baltic Benchmark GI decreased by 13% during the same period.

The average monthly turnover was EUR 0.18 million.

Share price information

AUGA group, AB share price on Nasdaq Vilnius, EUR

0.59*

0.61-0.71

0.66

Y Y Y

6M2022

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More information:

• Nasdaq Vilnius, Baltic Main List: AUG1L
• Nasdaq Vilnius, green bonds: AUGB060024A
• Information for investors: http://auga.lt/en/for-auga-investors
• Analyst reports, data in MS Excel format: https://auga.lt/en/investors/reports-and-presentations
• News for investors subscription: http://cutt.ly/auga
• Investor relations:

Mindaugas Ambrasas, CFO
+370 620 67296
m.ambrasas@auga.lt

6M2022
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DISCLAIMER

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The information on this presentation may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and certain of the plans and objectives of the Company with respect to these items. We caution that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. For these reasons, our actual future results may differ materially from the plans, goals, and expectations set forth in such forward-looking statements.

Unless required by law, the Company assumes no obligation to update or revise any forward-looking statement after the disclosure of this presentation.

6M2022

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ORGANIC FOOD WITH NO COST TO NATURE