Auga Group Ab · OMXVSE:AUG1L
Auga Group Ab — Q1 2023 Earnings Presentation
29 slides from Auga Group Ab's earnings presentation, June 2023
Slide 1: Presentation on the financial results for 3 months of 2023
Presentation on the financial results for 3 months of 2023
Slide 2: Presented by
Presented by Mindaugas Ambrasas CFO of AUGA group, AB 2
Slide 3: AUGA group at a glance
AUGA group at a glance* The largest vertically Founded in Listed on integrated organic food producer in Europe th. ha business segments employees of arable land million EUR % Products are sold revenue of sales is in export countries *Audited financial results, 2022 3
Slide 4: Transformation of AUGA
Transformation of AUGA AUGA Community Sustainable Sustainable Sustainable Technology Farming Food Provider Operations Basics AUGA Tech AUGA SOFA AUGA Trade Cooperatives Other farmers AUGA farms Other farmers AUGA farms Other farmers 4
Slide 5: Results
Results Negative Q1 result. EUR million 2023 3M 2022 3M Variance 2021 3M Revenue 21.70 17.56 +24% 19.48 Revenue has grown due to: Gross profit 2.45 5.65 -57% 4.51 • stable operational activities in all Net profit (3.17) 1.21 n/a 0.67 segments; EBITDA 2.79 6.71 -58% 5.74 • high value of last season’s
Slide 6: Results by segment: crop growing
Results by segment: crop growing
Slide 7: Crop growing
Crop growing Pricing trends. Organic vs. Conventional wheat price in Germany*, EUR/t 600 The prices for majority of 550 crops have decreased from 500 Y2022 level. 450 There are lots of uncertainties 400 regarding prices for new 350 organic harvest. 300 Lower level of activity in the 250 market: as o
Slide 8: Crop growing
Crop growing Conservative approach in Gain (loss) on initial recognition of biological asset at fair forecasting gain on initial value, €'000 6,000 recognition of biological 3,529 3,756 assets. 4,000 2,915 2,000 1,594 197 Adjustments in Q1: 0 125 • Cultivated area -2,000 -1,074 -1,420 • Forecasted a
Slide 9: Crop growing
Crop growing Q1 result: decrease of result 2023 3M 2022 3M Variance 2021 3M YoY due to more conservative Total cultivated land, ha 38,584 38,591 0% 39,223 forecast. EUR million 2023 3M 2022 3M Variance 2021 3M Total gain (loss) on revaluation of 2.09 5.86 -64% 3.61 Decreasing prices put pressure bio
Slide 10: Results by segment: dairy
Results by segment: dairy
Slide 11: Dairy
Milk yields, kg/cow/day Dairy 23.0 22.7 23.0 22.5 22.9 22.0 22.5 22.3 21.9 22.0 21.8 22.1 22.0 21.6 Milk yield and price 22.0 22.0 21.2 21.0 21.3 20.7 21.5 dynamics. 21.2 20.6 20.3 20.1 20.0 20.6 19.9 20.0 19.5 Production is back on track. 19.2 19.0 Our region had one of the Jan Feb Mar Apr May Jun
Slide 12: Dairy
Dairy Q1 result: decreasing prices 2023 3M 2022 3M Variance 2021 3M of raw milk resulted in a Total quantity of products sold, t 7,029 7,324 -4% 6,565 gross loss. Milk 6,496 6,986 -7% 6,189 Milk commodities 322 113 +185% 190 As for 31.03.2023 group’s herd Cattle 211 225 -6% 186 consists of 3,483 cow
Slide 13: Results by segment: mushroom growing
Results by segment: mushroom growing
Slide 14: Mushroom growing
Mushroom 600 Price of gas and electricity, Eur/MWh growing 500 400 300 Gas Electricity 200 100 3 key factors: 0 Mar May Mar May Mar May Oct Dec Oct Nov Nov Dec Aug Sep Aug Sep Feb Apr Feb Apr Feb Apr Jan Jun Jan Jun Jan Jul Jul • key costs are in control; 2021 2022 2023 • price of mushrooms, Price o
Slide 15: Mushroom growing
Mushroom growing Q1 result: continuous positive 2023 3M 2022 3M Variance 2021 3M development. Sold mushrooms, t -5% 3,177 2,875 3,038 Average price (Eur/t) 2,595 2,255 +15% 2,246 EUR 0.6 million gross profit for EUR million 2023 3M 2022 3M Variance 2021 3M Q1 after few very challenging Total revenue
Slide 16: Results by segment: FMCG
had BUTTERNUT SQUASH SOUP ORGANIC CARROT SOUP ORGANI BEETROOT SOUP ORGANIC CHAMPIGNON SOUP ORGANIC. MINESTRONE SOUP } oa = ORGANIC SPICY CURRY SOUP THREE LENTIL SOUP
Slide 17: FMCG
FMCG Q1 result: consistent growth: EUR million 2023 3M 2022 3M Variance 2021 3M +38% YoY. Revenue 1.94 1.41 +38% 1.42 Cost of goods sold (1.52) (1.14) +33% (1.04) Germany has become the Gross profit 0.41 0.27 +52% 0.38 second largest export market (sales amounted to EUR 401 thous. in Q1). Revenue, E
Slide 18: FMCG
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).
Slide 19: Transformation of AUGA
Transformation of AUGA
Slide 20: Transformation of AUGA
Transformation of AUGA AUGA Community AUGA Tech AUGA SOFA AUGA Trade • Identifying emissions • Sustainable farming • Brand marketing. problems in farming. standards and • AUGA-led contract certification. • Creating solutions. manufacturing. • Organisational structure • Developing and • Co-branding a
Slide 21: Transformation of AUGA
Transformation of AUGA AUGA Community Sustainable Sustainable Sustainable Technology Farming Food Provider Operations Basics AUGA Tech AUGA SOFA AUGA Trade Cooperatives Other farmers AUGA farms Other farmers AUGA farms Other farmers 21
Slide 22: How it will work, starting in Lithuania
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. 22
Slide 23: How will we generate revenue?
How will we generate revenue? AUGA Community Sustainable Sustainable Sustainable Technology Farming Food Provider Operations Basics AUGA Tech AUGA SOFA AUGA Trade Sale and Franchise Sales and lease fees co-branding 23
Slide 24: Projected timeline for implementation
Projected timeline for implementation Raising Capital and Financing for AUGA Co entity Pilot production Other Prototyping & testing AgTech Mass production Specialised Mass feed Prototyping & testing Pilot production production technology Preparing for Tractor First batch Testing in the fields mass M
Slide 25: Technological projects under development
Technological projects under development Sustainably powered machinery. First batch of AUGA M1 tractor is in field testing. Other projects under development. Biomethane infrastructure. 1st facility started operations in April. Negotiations in process regarding supply to the grid and sale of green ga
Slide 26: Other information
Other information Share price information AUGA group, AB share price on Nasdaq Vilnius, EUR 0.7 The share price increased 0.6 by 11% (from EUR 0.390 to 0.5 EUR 0.433 per share) from the beginning of 2023 to 0.4 31st of May 2023. OMX 0.3 Baltic Benchmark GI 0.2 increased by 7% during the same period.
Slide 27: More information:
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 subscriptio
Slide 28: Important notice
IMPORTANT NOTICE 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
Slide 29: Synonim for sustainable food and lifestyle
SYNONIM FOR SUSTAINABLE FOOD AND LIFESTYLE