Slide 1: Presentation on the financial results for 6 months of 2023
Presentation on the financial results for 6 months of 2023
Slide 2: Presented by Kęstutis Juščius, CEO
Presented by Kęstutis Juščius CEO of AUGA group, AB 2
Slide 3: AUGA group at a glance
AUGA group at a glance* Developer of agricultural Founded in Listed on technologies and producer of 2014 Nasdaq more sustainable organic food Vilnius 80.1million EUR 1,226 38.5 th. ha revenue employees of arable land 86 th. tonnes 25 th. tonnes 11.5 th. tonnes of crop production sold of dairy produc
Slide 4: AUGA group – developer of AG TECH and producer of more sustainable food
AUGA group – developer of AG TECH and producer of more sustainable food AUGA Community AUGA Tech AUGA SOFA AUGA Trade Technologies to Sustainable More sustainable address farming standards end-consumer emissions in and operations. products from agriculture. AUGA-grown raw materials. 4
Slide 5: Results for 6 months of 2023
Results for 6 months of 2023 EUR million 2023 6M 2022 6M Variance 2021 6M Revenue 40.93 33.99 +20% 33.13 Gross profit 3.07 12.43 -75% 8.50 Net profit (8.76) 3.65 n/a 0.75 EBITDA 3.57 15.05 -76% 11.14 Revenue grew by 20% as a result of: • higher 2022 harvest, part of which was sold during the first h
Slide 6: Results by segment: crop growing
Results by segment: crop growing
Slide 7: Crop growing
Crop growing Commodity price trends. Organic vs. Conventional wheat price in Germany*, EUR/t 600 The prices for wheat (and 550 other crops) hit the bottom 500 and stabilized. 450 400 The gap between organic 350 and conventional prices has 300 decreased significantly. 250 Lower level of market activi
Slide 8: Crop growing
Crop growing Revaluation of biological Gain (loss) on initial recognition of biological asset at fair assets. value per quarter, EUR '000 6,000 3 756 In Q2 the decrease was due to 4,000 3 529 2 915 lower estimated prices. 2,000 1 594 125 197 In Q3 no significant price or yield 0 adjustments are expe
Slide 9: Crop growing
Crop growing Financial results. 2023 6M 2022 6M Variance 2021 6M Total cultivated land, ha 38,190 38,525 -1% 39,139 Decreased prices had major EUR million 2023 6M 2022 6M Variance 2021 6M negative impact on revaluation of Total gain (loss) on revaluation of biological assets and on sales 1.56 9.62 -
Slide 10: Results by segment: dairy
Results by segment: dairy
Slide 11: Dairy
Milk yield, kg/cow/day Dairy 23.0 22.7 23.0 22.5 22.9 22.0 22.5 22.3 22.0 21.9 21.9 22.0 21.8 22.1 21.6 21.3 Yield and price dynamics. 22.0 21.8 21.3 21.2 21.0 21.3 20.7 21.5 21.2 20.6 20.1 20.3 19.9 20.0 20.6 Production yield is showing a 20.0 19.5 positive trend. 19.2 19.0 We see market indication
Slide 12: Dairy
Dairy 2023 6M 2022 6M Variance 2021 6M Financial results. Sales volume, t 13,459 13,924 -3% 13,538 Decreased prices of raw milk Milk 12,421 13,278 -6% 12,812 resulted in a gross loss. Milk commodities 632 235 +169% 335 Cattle 406 411 -1% 391 With stable milk yield the slight EUR million 2023 6M 2022
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 Price and production volume 100 0 dynamics. Jan Feb Jun Jul Jul Mar Oct Jan Feb Mar Jun Jul Oct Jan Feb Jun Mar May May May Nov Dec Nov Dec Aug Sep Aug Sep Aug Apr Apr Apr Costs were contained at only 2021 202
Slide 15: Mushroom growing
Mushroom growing Financial results. 2023 6M 2022 6M Variance 2021 6M Mushrooms sales volume, t 5,830 6,109 -5% 6,335 H1 was showing continuous Average price (EUR/t) 2,569 2,297 +12% 2,221 positive development. EUR million 2023 6M 2022 6M Variance 2021 6M In H2 similar financial result is Total sales
Slide 16: Results by segment: FMCG
SD THREE LENTIL souP i 4 | : ay CHAMPIGNC wy i : g SOUP ‘ : : onan BUTTERNUT SQuasH sour ff Ary Bow! Grit MINESTRONE ra eacanie fF = SOUP — mesic : Results by segment: FMCG ===
Slide 17: FMCG
FMCG Sales revenue continued to EUR million 2023 6M 2022 6M Variance 2021 6M grow. Sales revenue 4.14 2.72 +52% 2.59 Cost of goods sold (3.16) (2.53) +25% (1.93) From Q2, the segment consisted Gross profit 0.98 0.19 +416% 0.66 of: • regular organic products: soups, preserved vegetables, Revenue stru
Slide 18: AUGA group sold Grybai LT factory
AUGA group sold Grybai LT factory • Grybai LT was producing ready-to-eat soups and preserved products. • In 6 years, it was developed from zero. Products were exported to 30 countries. • The company was sold when it no longer aligned with the group‘s strategy. Only 18% of the raw materials came from
Slide 19: FMCG
FMCG AUGA’s new product line for consumers. Launched in May 2023. Everyday consumer food basics: dairy products, oat flakes, eggs. Produced exclusively from organic raw materials of AUGA farms, which are committed to sustainable farming practices. Available in the biggest retail chains in Lithuania.
Slide 20: Strategy implementation
Strategy implementation
Slide 21: New business model
New business model AUGA Community AUGA Tech AUGA SOFA AUGA Trade • Identifying emissions • Sustainable farming • Brand marketing. problems in farming. standard and • AUGA-led contract certification. • Creating solutions. manufacturing. • Organisational structure • Developing and • Co-branding and AU
Slide 22: Technological projects
Technological projects Sustainably powered machinery. First batch of AUGA M1 tractor is in field testing. Other projects under development. Biomethane infrastructure. 3 biomethane infrastructure objects have already been built. Connection of biomethane to the natural gas network – in progress. Speci
Slide 23: Current operational set-up
Current operational set-up • 11 regional cooperatives are already operational. • ~ 400 employees working in cooperatives. • 3 biomethane plants operational. • 21 technology hubs, which can service farmers in 25% of the territory of Lithuania. Sources: AUGA Farm; 23
Slide 24: Shrinking organic farming in Lithuania
Shrinking organic farming in Lithuania In 2023, the area of organic farms in Lithuania decreased by 18%. The number of industrial organic farms (>200 ha) has decreased by 30%. Reasons: • Decreasing prices of organic products. The price difference of organic production compared to conventional is to
Slide 25: Partial diversification into regenerative conventional agriculture
Partial diversification into regenerative conventional agriculture 1/3 of arable land will be converted, affecting only crop growing activities. Opportunities: • scaling AUGA's technologies and sustainable farming standard in conventional farms too; • supplying more sustainable raw materials to food
Slide 26: Diversification impact on future financial results
Diversification impact on future financial results Benefit to financial flows: • diversifying sales channels and markets; • revenue from conventional production enters the cash flow more rapidly; • adjusted working capital which is approx. EUR 40 million could be reduced substantially by the end of
Slide 27: Share price information
Share price information AUGA group, AB share price on Nasdaq Vilnius, EUR The share price decreased 0.7 by 3% (from EUR 0.390 to 0.6 EUR 0.380 per share) from 0.5 the beginning of 2023 to 0.4 31st of August 2023. 0.3 The average monthly 0.2 turnover was EUR 0.16 0.1 million. 0 2014.01 2015.01 2016.0
Slide 28: More information:
More information: • Nasdaq Vilnius, Baltic Main List, AUGA group, AB shares: AUG1L • Nasdaq Vilnius, Baltic Bond List, AUGA group, AB 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/re
Slide 29: 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 30: Synonim for sustainable food and lifestyle
SYNONIM FOR SUSTAINABLE FOOD AND LIFESTYLE