Auga Group Ab · OMXVSE:AUG1L
Auga Group Ab — Investor Presentation (December 2020)
36 slides from Auga Group Ab's investor presentation, December 2020
Slide 1: Presentation of AUGA Group, AB
aU ga Toroup PRESENTATION OF AUGA GROUP, AB ORGANIC FOOD WITH NO COST TO NATURE Updated: December 2020
Slide 2: Main facts about AUGA group
MAIN FACTS ABOUT AUGA GROUP aU 1 200 employees Based in Lithuania, AUGA group is the largest vertically 39 000 ha of arable land integrated organic food producer in Europe. The group's companies undertake agricultural, food production, supply chain and administrative activities. EUR 71 million reven
Slide 3: Transformation milestones
TRANSFORMATION MILESTONES In five years, AUGA group of companies has transformed itself from conventional agricultural operations to a technology-based (AGTECH) organic food production business. YY Y PRESENTATION OF AUGA GROUP, AB 2015 2016 2017 2018 2019 2020 Commencing supply of organic mushrooms
Slide 4: Sustainable business model
SUSTAINABLE BUSINESS MODEL 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 im
Slide 5: Source: https://www.vzf.lt/?naujienos=atnaujinti-zemes-nasumo-vertinimo-erdviniai-duomenys
60 - 100 50 - 60 45 - 50 40 - 45 35 - 40 30 - 35 25 - 30 15 - 25 1 - 15 Source: https://www.vzf.lt/?naujienos=atnaujinti-zemes-nasumo-vertinimo-erdviniai-duomenys
Slide 6: Export markets and biggest clients
EXPORT MARKETS AND BIGGEST CLIENTS ay aan Cosrco. midsona ; ICA Axfood = @ Abe. = Auchan Based in EU, Lithuania CANADA, Ve7,. unfi united natural foods / Giant Costco SsTopasHoP. Sales revenue 2019 aoe id dé traders) PRESENTATION OF AUGA GROUP, AB Ng 6 Export (incl.
Slide 7: Team
TEAM aU The Company's team of AUGA group's team of 1200 employees brings together specialists and engineers* has agricultural professionals and technical engineers with almost 1000 years of many years of experience, alongside experts in finance, experience. High job satisfaction rate (4/5 employees
Slide 8: Management
MANAGEMENT The Company's visionary and majority shareholder Kestutis Juséius formed a new management team during the transformation of the Company, implementing a set of ambitious goals. YY Y PRESENTATION OF AUGA GROUP, AB Kestutis JuScius, CEO Mindaugas Ambrasas, CFO Gediminas Judzentas, Marketing
Slide 9: Independent Board
As of 2018, the Company Independent Board - a unique case in Lithuania. began publishing Sustainability Reports. The independent Board, Sustainability Reports and good governance practices. formed in 2019, is actively engaged in the implementation of good governance practices. The Board consists of
Slide 10: Shareholders
SHAREHOLDERS Qo oc The Company's shares are 227 416 252 shares listed on the Nasdaq Baltic Main List. 1 541 shareholders* (increased by 18.4% over the year) Largest Shareholders: ° Baltic Champs Group (100% shares belong to Kestutis Juscius), ° European bank for reconstruction and development (EBRD)
Slide 11: Share price information
SHARE PRICE INFORMATION The share price increased by 22.8% (from EUR 0.363 to EUR 0.446 per share) from the beginning of 2020 to 30 November 2020. The average monthly turnover was EUR 0.35 million. No 3 corporate bond turnover in Baltics. (annual turnover 1.8 MEUR up to 2020.11.30) YY Y PRESENTATION
Slide 12: Latest financial results
LATEST FINANCIAL RESULTS 43 AUGA group improved revenue I ETC ES ed in all business segments in Revenue, EUR million 48.78 54.75 71:13 62.38 47.05 2020. Gross profit, EUR million 14.93 3.66 9.85 11.88 8.00 Revenue, profit and EBITDA EBT, EUR million 5.02 (598) (3.22) 0.44 (1.28) have increased. EBIT
Slide 13: Revenue distribution in 2019
REVENUE DISTRIBUTION IN 2019 The biggest business segments End consumer products of AUGA group is crop growing and mushroom growing. Dairy End-consumer products (FMCG) segment is of strategic importance for the company and currently is the fastest growing. Mushroom growing YY Y PRESENTATION OF AUGA
Slide 14: Crop growing
CROP GROWING Efficiency agenda 2023: ° Alignment of organic wheat and pulse yield levels with the geographic conventional average. * Implementation of expedient organic seed mechanisms in AUGA farms. ° Introduction of farming best practices in AUGA farms. YY Y PRESENTATION OF AUGA GROUP, AB About th
Slide 15: Dairy
DAIRY About the segment q2 Dairy segment includes organic milk production and cattle Efficiency agenda 2023: raising. AUGA produce over 25 000 tones of milk per year. Dairy segment operates in synergy with organic crop growing as it consumes forage crops used for crop rotation and its organic waste
Slide 16: Mushroom growing
About the segment Baltic Champs, part of AUGA group, is the largest producer of mushrooms in the Baltics, mainly exporting to Sweden, Efficiency agenda Denmark, Norway, Latvia and Estonia. The company grows approx. 12,000 t of mushrooms annually Review of the whole and produces compost for mushroom
Slide 17: End-consumer products (FMCG)
END-CONSUMER PR a i 4 ODUCTS (FMCG) \ PRESERVED PULSES READY-TO-ERINSO UPS, AND M@SHROOMS PRESENTATION OF AUGA GROUP, AB 7
Slide 18: FMCG
FMCG Efficiency agenda 2023: * Expansion of AUGA and private labels in existing and new markets. * Raising AUGA brand awareness. * Definition of the sustainability criteria. YY Y PRESENTATION OF AUGA GROUP, AB About the segment aU da This segment is of strategic importance for the company and due to
Slide 19: Latest financial results by all segments
LATEST FINANCIAL RESULTS BY ALL SEGMENTS g3 CROP GROWING Sales revenue, EUR million 14.20 17.47 29.49 16.45 27.89 Gross profit. EUR million 13.36 4.29 7.79 7.14 10.17 DAIRY Total quantity of products sold, t 23.87 23.39 25.22 19.14 19.83 Revenue, EUR million 9.01 8.95 10.14 7.63 8.18 Gross profit, E
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Slide 21: Global organic market trends
GLOBAL ORGANIC MARKET TRENDS Market size, Growth EUR bn 2018/19 In 2018, global organic sales reached EUR 92 bn. In 10 years, consumers have more than tripled their consumption of organic products, and demand continues to grow. YY Y PRESENTATION OF AUGA GROUP, AB Cou Germany 12.0 France 97 Italy 4.2
Slide 22: COVID-19 impact on organic market
COVID-19 IMPACT ON ORGANIC MARKET aU ga Consumers prefer home- According to market research conducted in Germany’ and cooked food, so they not only France? in 2020, the consumption of organic products grew buy more, but also choose faster than conventional consumption in many categories. healthier,
Slide 23: From Farm to Fork strategy of the EU
FROM FARM TO FORK STRATEGY OF THE EU aU Goals till 2030 1: * to devote 25% of all EU agricultural land to organic farming; * to increase the GHG emission reduction target to 50%; * To reduce the use of chemical and hazardous pesticides by 50%. YY Y PRESENTATION OF AUGA GROUP, AB ga In May 2020, the
Slide 24: Consumers demand sustainability
CONSUMERS DEMAND SUSTAINABILITY aU Consumers, especially young 90% say that the climate crisis makes them feel people, are worried about the insecure about the future! future and would agree to change their consumption 75% of 21-34-year olds say they would change habits and buy sustainable their con
Slide 25: Focused sustainability-strategy (2025)
FOCUSED S SUSTAINABILITY- STRATEGY (2025) UP
Slide 26: The future of AUGA
THE FUTURE OF AUGA 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. This is focused on building environmental and long-term
Slide 27: Current challenges in the food value chain
CURRENT CHALLENGES IN THE FOOD VALUE CHAIN Globally, agriculture accounts for about 23% of total GHG emissions (from farming activities and deforestation due to agricultural development). Organic farms, meanwhile, face the efficiency and sustainability challenges of not achieving high yields while i
Slide 28: AUGA SOFA model
AUGA SOFA MODEL aU Sustainable organic rs) food basket SOFA (Sustainable organic food architecture ) model will allow to deliver organic food with no cost to nature through the implementation ve ‘olised of AGTECH: & “eed plant 1) Biogas cycle infrastructure . Crop growing and vehicles, (50% legumino
Slide 29: CO2 reduction goals by 2025
CO2 REDUCTION GOALS BY 2025 3 The use of fossil fuels in 50% less emissions from fossil fuel use on farms. agricultural operations is being 9° Lo. f \ . replaced by biomethane from 50% less emissions per one tonne of cow's milk. animal manure. 30% less emissions from agricultural dry matter yield pe
Slide 30: Sustainable financing
SUSTAINABLE FINANCING 43 In 2019, the green financing ° Agriculture is currently unable to access green financing. market (bonds and loans) reached EUR 238.7 bn., but only 3% of all financing was * Lenders will have the opportunity to invest in SOFA sustainable food chain goals. dedicated to land us
Slide 31: The future of AUGA
THE FUTURE OF AUGA In 2020, the Company is taking a new step and developing a new standard for sustainable organic food in the food value chain. This is focused on building environmental and long-term sustainability for the AUGA community. YY Y PRESENTATION OF AUGA GROUP, AB CONSUMERS Ability to del
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Slide 33: EBITDA definitions
EBITDA* (before IFRS16) - net cash flow from operating activities before changes in working capital and net interest paid, as it is disclosed in cash flow statement prepared according to IFRS, including gain (loss) on fair value changes of biological assets. IFRS16 adoption effect is eliminated. IFR
Slide 34: Balance sheet
BALANCE SHEET ASSETS Non-current assets Property plant and equipment Right-of-use assets Biological assets Other non-current assets Total non-current assets Current assets Biological assets Inventory ‘Trade receivables, advance payments and other receivables Cash and cash equivalents Assets held for
Slide 35: Cashflow statement
CASHFLOW STATEMENT q2 Audited Unaudited Cash flows from / (to) operating activities let profit (loss) before income tax 1792 4793 6 462) 3.992) 438 1279) Adjustments for non-cash expense (income) items and other ‘adjustments Depreciation expense 6.058 6800 7504 7286 5 be 5712 Depreciation expense (I
Slide 36: More information
MORE INFORMATION gU G3 YY Y PRESENTATION OF AUGA GROUP, AB Nasdaq Vilnius, Baltic Main List: AUGIL Nasdaq Vilnius, Green Bonds: AUGBO60024A Official website: www.auga.lt Information for investors, data in MS Excel format: http://auga.|t/en/for-auga-investors/ Analyst reports: http://auga.|t/en/for-a