AUGA group — Investor Presentation 2023

May 25, 2023

HOW AUGA WILL TRANSFORM THE AGRICULTURE AND FOOD INDUSTRY

2

Agriculture is responsible for 22% of global emissions

Source: The Intergovernmental Panel on Climate Change at the United Nations report (2022), data for the year 2019

One of the best way to address emissions is through technology

Sustainable

• 1. Identify emissions problems in farming.
• 1. Create solutions.
• 1. Develop and scale technology.

Our achievements

The amount of diesel fuel saved in one busy month when you use our AUGA M1 tractor is equivalent to that used in the entire lifetime of a diesel-powered passenger car.

• First production models of AUGA M1 tractors are now at the fieldtesting stage.
• AUGA's unique biomethane processing and delivery cycle is operational.
• Specialised feed technology that will reduce methane emissions from cattle is at prototype stage and shows promising results.
• Sustainably powered agricultural machinery for other essential farming operations is under development.

How can we scale it from one drop to the whole ocean?

Farmers don't want to change

• Small farms

Farmers working less than 100 ha occupy 47% of total farmland in EU.

• Aging farmers

33.2% of farmers in EU are over 65 years old.

• Limited access to technology and financing
• For them Green Deal is a threat

To reduce global emissions, we need to encourage farmers to change

AUGA's proposition to farmers:

Join our community Use our sustainable practices Become wealthier and enjoy better life

• 1. Develop and monitor sustainable farming standards and provide certification.
• 1. Provide organizational structure for sustainable technology sharing.
• 1. Support farmers with know-how and digital farm management tools.

Franchise-based community model

How it will work, starting in Lithuania

Current AUGA operations:

• 38 000 ha of arable land.
• 3 500 dairy cows.
• 3 biomethane plants.
• 150 tractors and other agricultural machines used.

New structure:

• 11 regional cooperatives.
• 21 technology hubs that can service farmers in 25% of the territory of Lithuania.
• Open for farmers to join from H2 2023.

What's in it for farmers?

• Access to AUGA's cost reducing sustainable farming technologies.
• Combined purchasing power for supplies and farming inputs.
• Simplified and wider access to capital with better conditions.
• Streamlined operations and reduced administrative costs through Farming App.
• Premium for sustainably grown produce?

Do consumers want sustainable food? Yes

69%

of Europeans would choose a climate friendlier food item versus a cheaper option.

How will we build value for consumers?

We will do this by:

Helping them to understand the impact they make Making it easy for them to switch to sustainable food Giving them sustainable versions of the brands, they love

• 1. Brand marketing.
• 1. AUGA-led contract manufacturing.
• 1. Co-branding and AUGA sustainability labels.

AUGA new product line for consumers

• Launched in May 2023, now available in the biggest retail chains in Lithuania.
• Started with essential dairy products, oat flakes, eggs and will be extended.
• Produced exclusively from organic raw materials from AUGA farms, which are committed to sustainable farming practices.

mission no cost to nature

Other food processors are also looking to reduce emissions

How does it all fit together?

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How will we generate revenue?

Average profitability of our targeted business segments

Sustainable	Sustainable	Sustainable
Technology	Farming	Food
Provider	Operations	Basics
Agricultural	Farming	Branded
machinery	operations	food
peers	peers	peers
Gross profit 22-25%	Gross value added 40%	Gross profit 50% - Marketing 20% - Other 13% = Operational profit 17%

Sources: Deere & Company - https://s22.q4cdn.com/253594569/files/doc_financials/2020/ar/Annual-Report-2020_.pdf, 9 AGCO Corp https://investors.agcocorp.com/static-files/dde17fd9-4fca-4bb0-b77abaf80115f3bd; Agricultural Output – Eurostat, https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Performance_of_the_agricultural_sector#Value_of_agricultural_output,, 11 Nestle https://www.nestle.com/sites/default/files/2021-02/2020-financial-statements-en.pdf

Where can we make the most impact?

REGION	FOOD RETAIL, USD bn	AGRI MACHINERY, USD bn
Europe	1 686	35
North America	1 236	57
TOTAL	2 922	92

Projected timeline for implementation

22

How will we finance it?

EQUITY	EU GREEN DEAL INDUSTRIAL PLAN (QUASI-EQUITY)	BANK FINANCING
For initial transformation technologies and brand building	For technology development and scaling	For ready-to-use machinery

AUGA strategy 2025 reminder

a more sustainable way to eat

a more sustainable way to work

CONSUMERS FARMERS PRIVATE AND INSTITUTIONAL LENDERS

a more sustainable way to invest

SHAREHOLDERS

a more sustainable way to receive financial returns

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.