Auga Group Ab · OMXVSE:AUG1L
Auga Group Ab — Q1 2020 Earnings Presentation
33 slides from Auga Group Ab's earnings presentation, Jun 1, 2020
Slide 1: Presentation of Financial Results of 3 Months of 2020
aU ga Toroup PRESENTATION OF FINANCIAL RESULTS OF 3 MONTHS OF 2020 AUGA group, AB
Slide 2: Presented by
PRESENTED BY aU ow | Kestutis Juscius Mindaugas Ambrasas Eimantas Gudonis CEO CFO Head of Finance Department Majority shareholder YY Y 2020 Q1 2
Slide 3: New Strategy
NEW STRATEGY In 2015, the strategic decision to switch to organic farming and produce organic products was made. In 2020, the company is taking a new step and developing a new standard for sustainable organic food in the food value chain, focused on the environmental and long-term sustainability for
Slide 4: Relevant Information: COVID impact
RELEVANT COVID - 19 impact au INFORMATION ga * According to market research in 2020 in Germany! and France2, consumption of organic products grew faster than conventional consumption in many categories At the market level, agricultural * There are two main reasons that has a positive effect on produ
Slide 5: Results 2020 Q1
RESULTS 2020 Q1 results g3 - AUGA group's revenue, profit and EBITDA increased all business segments. Revenue, EUR million 17.04 14.89 +14% 71.13 Gross profit, EUR million 3.74 2.95 +27% 9.85 Net profit, EUR million 0.18 0.17 +6% (3.22) EBITDA (including IFRS16 effect), 4.95 4.58 +8% 1712 EUR millio
Slide 6: Results by segment: Crop growing
Slide 7: Crop Growing: Price dynamics
CROP Price dynamics aU ga GROWING * Organic grain prices are not linked to conventional grain prices and demand Organic vs Conventional wheat price in Germany, EUR/t Germany, the largest EU 500 market, is a benchmark for Organic Wheat (Food) major organic product prices. 400 In 2020 Q1, AUGA average
Slide 8: Crop Growing 2020 Q1 results
CROP 2020 Q1 results aU GROWING * Improved revenue and gross profit ga In 2020 the area of cultivated land 2020 Q@1 2019 Q1 Variance FY201 increased by around 1 thous. ha. Total cultivated land, ha 39,772 38,564 +3% 38,564 Positively affected by weather conditions the total fair value gain on Total
Slide 9: Results by segment: Dairy
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Slide 10: Dairy: Price dynamics
DAIRY While conventional milk price decreased, organic milk price remained stable. The share of AUGA milk sold at the prices of organic milk consistently increased and in April already reached 100%. In April 2020, the group receive China organic certificate for commodity and packaged milk products w
Slide 11: Dairy 2020 Q1 results
DAIRY 2020 Q1 results g3 * The segment became profitable In 2020 Q1, the share of milk sold Total quantity of products sold, t 6,730 6,413 +5% 25,224 at organic prices reached 86% (in Milk, t 6,549 6,219 +5% 24,492 2019 Q1, it was 54%). Gaia 181 194 7% 732 Yield of milk increased by 5%. Revenue, EUR
Slide 12: Results by segment: Mushroom growing
Slide 13: Mushroom Growing 2020 Q1 results
MUSHROOM GROWING Higher harvest compared to last year. Due to the increased mushroom harvest, the cost of cultivated mushrooms relatively decreased for the same production volumes. Cost of production decreased more (6%) than the average selling price of mushrooms (2%). Compost sales were negatively
Slide 14: Results by segment: End-Consumer Products (FMCG)
Slide 15: FMCG 2020 Q1 results
FMCG Sales grew in all markets, with the largest impact coming from increased sales in the U.S. The main product group remains unchanged — preserved mushrooms, vegetables and soups. The company expects that the segment will continue to be the fastest growing. YY Y 2020 Q1 2020 Q1 results aU ga * Sal
Slide 16: FMCG: Latest news
FMCG AUGA products appeard on the shelves of Wholefoods market USA, the largest specialized retailer of natural and organic products. Successfully continued export to UAE. AUGA soups had high demand during Ramadan laikotarpiu. At the end of May 2020, the companies controlled by AUGA group acquired 1
Slide 17: Financial results
e e Sw Financial results
Slide 18: Financial indicators
FINANCIAL Financial indicators au RESULTS ga Equity, EUR million 90.31 90.07 2019 results were negatively Total assets, EUR million 209.08 206.72 +1% affected by the unusual weather Equity Ratio, % (ERA en 554 conditions (the company estimates that 2019 EBITDA was eet EUR million (after 95.66 93.99
Slide 19: Company shares
n> CS Mpany shares ~*~. /.
Slide 20: Share price chart
0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00
Slide 21: Company Shares: Investment opportunities
COMPANY SHARES YY Y 2020 Q1 Investment opportunities aU rs) Nasdaq Vilnius, Baltic Main List: AUGIL g Nasdaq Vilnius, breen bonds: AUGBO60024A Information for investors, data in MS Excel format: http://auga.lt/en/for-auga-investors, Ana lyst reports: http://auga.lt/en/for-auga-investors/analyst- cov
Slide 22: More information: www.auga.lt
aU ge More information: www.auga.|t
Slide 23: About the Company
ABOUT THE COMPANY
Slide 24: About the Company: Main facts
ABOUT THE COMPANY AUGA group is the largest vertically integrated organic food producer in Europe providing sustainably grown food from field to shelf. The Company's competitive advantages: * Economy of scale * Vertical integration ° Full traceability ° Synergies among different branches of agricult
Slide 25: Transformation milestones
ABOUT THE COMPANY In five years, AUGA's group of companies has transformed itself from a conventional agricultural operation to a technology-based (AGTECH) organic food production business with a strategic focus on sustainability. YY Y STRATEGY 2025 Transformation milestones 2015 2016 2017 2018 2019
Slide 26: Revenue by market
60 - 100 50 - 60 45 - 50 40 - 45 35 - 40 30 - 35 25 - 30 15 - 25 1 - 15
Slide 27: Sustainable business model
ABOUT THE COMPANY The company is developing a closed-loop organic farming model which aims to achieve synergies among different branches of agriculture and the re-use of organic waste. A vertically integrated production chain ensures that production is fully traceable, which is extremely important i
Slide 28: End-consumer products
ABOUT THE End-consumer products au COMPANY ga PRESERVED VEGETABLES AND MUSHROOMS ] Pam; =f om The company offers a wide range of end- consumer products using proprietary and contracted manufacturing. READY-TO-EAT_ ~~ Of i | GRAIN Bs propucts | RAPESEED. OIL , = FRESH , Er Ay BLN) Bn ; op LP u wt YY
Slide 29: Lietuva / Eksporto rinkos
27% 73% Lietuva Eksporto rinkos
Slide 30: Team
ABOUT THE Team aU COMPANY ga * The team of specialists and engineers* has almost 1000 years of experience * High job satisfaction rate (4/5 employees are satisfied The team of 1200 employees with their job) consists of agricultural professionals and technical engineers with many years of experience,
Slide 31: Management team
ABOUT THE COMPANY The company's visionary and majority shareholder Kestutis JuScius formed a new management team during the transformation of the company, implementing a set of ambitious goals. YY Y STRATEGY 2025 Management team Kestutis JuScius, CEO Mindaugas Ambrasas, CFO Gediminas Judzentas, Mark
Slide 32: Governance
Governance Independent Board - a unique case in Lithuania The Board consists of well-known professionals Sustainability Reports and good governance practices As of 2018, the Company began publishing Sustainability Reports. The independent Board, formed in 2019, is actively engaged in the implementat
Slide 33: Shareholders
ABOUT THE COMPANY The company's shares are listed on the Nasdaq Baltic Main List. Largest Shareholders: ° Baltic Champs Group (100% shares belong to Kestutis Juscius), ° European bank for reconstruction and development (EBRD), ° ME investicija - one of the largest institutional investors in the Balt