AUGA group — Investor Presentation 2023

Jun 6, 2023

Presentation on the financial results for 3 months of 2023

Presented by

Mindaugas Ambrasas CFO of AUGA group, AB

AUGA group at a glance*

Results

Negative Q1 result.

Revenue has grown due to:

• stable operational activities in all segments;
• high value of last season's harvest.

Key factors of negative result:

• decreased prices of agricultural products
• significantly lowered forecasted prices for the 2023 harvest

EUR million	2023 3M	2022 3M	Variance	2021 3M
Revenue	21.70	17.56	+24%	19.48
Gross profit	2.45	5.65	-57%	4.51
Net profit	(3.17)	1.21	n/a	0.67
EBITDA	2.79	6.71	-58%	5.74

Results by segment: crop growing

Crop growing

Pricing trends.

The prices for majority of crops have decreased from Y2022 level.

There are lots of uncertainties regarding prices for new organic harvest.

Lower level of activity in the market: as of 31.05.2023 there are contracts (excl. long term agreements) of 2023 harvest for €3M (2022 – €8.5M).

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

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

Crop growing

Conservative approach in forecasting gain on initial recognition of biological assets.

Adjustments in Q1:

• Cultivated area
• Forecasted average yields
• Forecasted price
• Forecasted total costs

Gain (loss) on initial recognition of biological asset at fair value, €'000

Crop growing

Q1 result: decrease of result YoY due to more conservative forecast.

Decreasing prices put pressure on sales result.

No major changes in subsidies for 2023.

	2023 3M	2022 3M	Variance	2021 3M
Total cultivated land, ha	38,584	38,591	0%	39,223
EUR million	2023 3M	2022 3M	Variance	2021 3M
Total gain (loss) on revaluation of biological assets (crops)	2.09	5.86	-64%	3.61
Gain (loss) on revaluation of biological assets (crops) recognized in previous period	1.97	2.33	-15%	2.02
Gain (loss) on revaluation of biological assets (crops) recognized in current period	0.13	3.53	-96%	1.59
Sales revenue	7.91	5.09	+55%	7.53
Cost of sales	(8.41)	(5.08)	+66%	(8.00)
One-time income (inventory write-offs)	0.01	(0.30)	n/a	(0.08)
Result of internal transactions	(0.64)	(0.73)	-12%	-
Result of sales of agricultural produce	(1.12)	(1.01)	+11%	(0.54)
Subsidies	2.51	2.42	+4%	2.38
Gross profit	1.52	4.94	-69%	3.43

Results by segment: dairy

Milk yield and price dynamics.

Production is back on track.

Our region had one of the steepest decrease of prices in EU.

Milk price, EUR/t

Dairy

Q1 result: decreasing prices of raw milk resulted in a gross loss.

As for 31.03.2023 group's herd consists of 3,483 cows and 3,502 heifers and bulls, compared to 3,591 cows and 3,136 heifers and bulls a year before.

	2023 3M	2022 3M	Variance	2021 3M
Total quantity of products sold, t	7,029	7,324	-4%	6,565
Milk	6,496	6,986	-7%	6,189
Milk commodities	322	113	+185%	190
Cattle	211	225	-6%	186
EUR million	2023 3M	2022 3M	Variance	2021 3M
Revenue	4.15	4.05	+2%	3.28
Milk	2.98	3.31	-10%	2.51
Milk commodities	0.88	0.38	+132%	0.58
Cattle	0.29	0.36	-19%	0.19
Cost of sales	(4.18)	(3.59)	+16%	(3.26)
Milk	(3.03)	(2.87)	+6%	(2.51)
Milk commodities	(0.85)	(0.37)	+130%	(0.56)
Cattle	(0.29)	(0.36)	-19%	(0.19)
Revaluation of biological assets	(0.82)	(0.67)	+22%	(0.55)
Subsidies	0.78	0.79	-1%	0.73
Gross profit	(0.07)	0.57	n/a	0.21

Results by segment: mushroom growing

Mushroom growing

500 600

3 key factors:

• key costs are in control;
• price of mushrooms, excluding transport and packaging effect, was 22% higher YoY;
• production is stable, still room for improvement.

14

Mushroom growing

Q1 result: continuous positive development.

EUR 0.6 million gross profit for Q1 after few very challenging years.

	2023 3M	2022 3M	Variance	2021 3M
Sold mushrooms, t	2,875	3,038	-5%	3,177
Average price (Eur/t)	2,595	2,255	+15%	2,246
EUR million	2023 3M	2022 3M	Variance	2021 3M
Total revenue	7.70	7.01	+10%	7.26
Mushroom sales revenue	7.46	6.85	+9%	7.14
Compost sales revenue	0.24	0.16	+50%	0.12
Cost of sale	(7.12)	(7.14)	0%	(6.76)
Cost of mushrooms sold	(6.88)	(6.98)	-1%	(6.68)
Cost of compost sold	(0.24)	(0.16)	+50%	(0.08)
Gross profit	0.58	(0.13)	n/a	0.50

Results by segment: FMCG

FMCG

Q1 result: consistent growth: +38% YoY.

Germany has become the second largest export market (sales amounted to EUR 401 thous. in Q1).

EUR million	2023 3M	2022 3M	Variance	2021 3M
Revenue	1.94	1.41	+38%	1.42
Cost of goods sold	(1.52)	(1.14)	+33%	(1.04)
Gross profit	0.41	0.27	+52%	0.38

Revenue, EUR million

FMCG

AUGA's new product line for consumers.

• Started May 2023.
• Everyday consumer food basics.
• Produced exclusively from organic raw materials from AUGA farms, which are committed to sustainable farming practices.
• Available in the biggest retail chains in Lithuania (384 locations as of 06.05).
• Started with essential dairy products, oat flakes, eggs and will be extended (9 SKUs as of 06.05).

A new category in food.

mission no cost to nature

• Developing and

scaling technology.

• Organisational structure for technology sharing.

• Co-branding and AUGA sustainability labels.

• Know-how and digital farm management tools for farmers.

20

How it will work, starting in Lithuania

• 11 regional cooperatives.
• 3 biomethane plants.
• 21 technology hubs that can extend their coverage from the current 38 000 ha to 750 000 ha of farmland (servicing farmers in 25% of the territory of Lithuania)
• Open for farmers to join from H2 2023.

How will we generate revenue?

Projected timeline for implementation

24

Technological projects under development

Sustainably powered machinery.

First batch of AUGA M1 tractor is in field testing.

Other projects under development.

Biomethane infrastructure.

1 st facility started operations in April.

Negotiations in process regarding supply to the grid and sale of green gas.

Specialized feed technology.

Testing phase, further development of technology.

Other information

Share price information

The share price increased by 11% (from EUR 0.390 to EUR 0.433 per share) from the beginning of 2023 to 31st of May 2023. OMX Baltic Benchmark GI increased by 7% during the same period.

The average monthly turnover was EUR 0.16 million.

AUGA group, AB share price on Nasdaq Vilnius, EUR

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 of AUGA group, AB +370 620 67296 m.ambrasas@auga.lt

This presentation has been prepared by AUGA group, AB (AUGA group) solely for informational purposes and must not be relied upon, disclosed or published, or used in part for any other purpose.

The presentation should not be treated as investment advice or provide basis for valuation of AUGA group securities and should not be considered as a recommendation to buy, hold, or dispose of any of its securities, or any of the businesses or assets referenced in the presentation.

The information in this presentation may comprise information which is neither audited nor reviewed by independent third parties and should be considered as preliminary and potentially subject to change.

This presentation may also contain certain forward-looking statements, including but not limited to, the statements and expectations regarding anticipated financial and operational performance. These statements are based on the management's current views, expectations, assumptions, and information as of the date of this presentation announcement as well as the information that was accessible to management at that time. Statements herein, other than statements of historical fact, regarding AUGA group's future results of operations, financials, business strategy, plans and future objectives are forward-looking statements. Words such as "forecast", "expect", "intend", "plan", "will", "may", "should", "continue", "predict" or variations of these words, as well as other statements regarding matters that are not a historical fact or regarding future events or prospects, constitute forward-looking statements. AUGA group bases forward-looking statements on its current views, which involve a number of risks and uncertainties, which may be beyond AUGA group's control or difficult to predict, and could cause the actual results to differ materially from those predicted and from the past performance of AUGA group. The estimates and projections reflected in the forward-looking statements may prove materially incorrect and the actual results may materially differ due to a variety of factors, including, but not limited to, legislation and regulatory factors, geopolitical tensions, economic environment and industry development, commodities and markets factors, environmental factors, finance-related risks as well as expansion and operation of generation assets. Therefore, you should not rely on these forward looking statements.

Certain financial and statistical information presented in this presentation is subject to rounding adjustments. Accordingly, any discrepancies between the listed totals and the sums of the amounts are due to rounding.

Certain financial information and operating data relating to AUGA group presented in this presentation has not been audited and, in some cases, is based on the management's information and estimates, and is subject to change. This presentation may also include certain non-IFRS measures which have not been subjected to a financial audit for any period.

No responsibility or liability will be accepted by AUGA group, its affiliates, officers, employees, or agents for any loss or damage resulting from the use of forwardlooking statements in this presentation. Unless required by the applicable law, AUGA group is under no duty and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.