Auga Group Ab · OMXVSE:AUG1L
Auga Group Ab — 9M 2022 Earnings Presentation
23 slides from Auga Group Ab's earnings presentation, December 2022
Slide 1: Presentation on the Financial Results for 9 Months of 2022
PRESENTATION ON THE FINANCIAL RESULTS FOR 9 MONTHS OF 2022
Slide 2: Presented by Mindaugas Ambrasas, CFO
PRESENTED BY Mindaugas Ambrasas CFO 9M2022 2
Slide 3: AUGA Group at a Glance
AUGA GROUP AT A GLANCE* Founded in Listed on The largest vertically integrated organic food producer in Europe th. ha business segments employees of arable land Products are sold in million EUR % revenue of sales is export countries 9M2022 *Audited financial results, 2021 3
Slide 4: Results
RESULTS Operating results had improved Financial data for 9 months EUR million 2022 9M 2021 9M Variance 2020 9M tentatively reflect the result of 2022. Revenue 57.71 54.90 +5% 62.38 Gross profit 13.14 1.70 +673% 11.88 The group had rebounded from very difficult Y2021, the results Net profit (0.62) (
Slide 5: Results by segment: Crop growing
Results by segment Crop growing 4
Slide 6: Crop growing results had improved significantly YoY
CROP GROWING Crop growing results had improved significantly YoY Wheat and legumes account for 61% Wheat 2021/2022 2020/2021 Variance of cash crops’ land plot. Area, ha 11,693 10,440 +12% Yield, t/ha 3.41 3.29 +4% Yields had improved, but overall Price, Eur/t 402 240 +68% results were lowered by poo
Slide 7: Market trends: prices slightly decreasing lately, significant growth YoY
CROP GROWING Market trends: prices were slightly decreasing lately, significant growth YoY As for 30.11.2022, the group contracted 90% of forecasted 2022 Organic vs. Conventional wheat price in Germany*, EUR/t harvest. Organic wheat (food) Organic wheat (feed) Conventional wheat (food) Conventional
Slide 8: Q3 results have the highest volatility historically
CROP GROWING Q3 results have the highest volatility historically Negative developments in Q3 due to weather conditions mainly: cold, rainy weather and heavy Gain (loss) on initial recognition of biological asset at fair value, €'000 winds had decreased the harvest. 6,000 3,529 3,658 3,756 4,000 2,91
Slide 9: Crop growing 2022 9M results
CROP GROWING 2022 9M results Significant improvement YoY 25% of the harvest sold in Q3 (44% in 2022 9M 2021 9M Variance 2020 9M Q3Y2021). Total cultivated land, ha 38,525 39,139 -2% 39,637 EUR million 2022 9M 2021 9M Variance 2020 9M Total gain (loss) on revaluation of biological Improvement in sale
Slide 10: Results by segment: Dairy
Results by segment Dairy 7
Slide 11: Dairy: Milk yield and price dynamics
DAIRY Milk yield and price dynamics Milk yields, kg/cow/day 22.7 22.9 23.0 22.5 In 9M of 2022 milk yields fell by 2% 22.0 22.1 22.3 22.4 21.9 21.8 YoY. Decision by the group: due to 22.0 21.4 22.0 22.0 21.6 22.0 21.2 poor last year's harvest, there was a 21.1 20.8 20.7 21.0 21.3 21.2 20.6 20.6 20.5
Slide 12: Dairy 2022 9M results
DAIRY 2022 9M results High prices are main driver for improving profitability. As for 30.09.2022 group’s herd 2022 9M 2021 9M Variance 2020 9M consists of 3,479 cows and 3,340 Total quantity of products sold, t 20,249 20,168 0% 20,387 heifers and bulls, compared to Milk 19,305 19,112 +1% 19,307 3,49
Slide 13: Results by segment: Mushroom growing
Results by segment Mushroom growing 13
Slide 14: Mushroom growing key drivers: costs, prices, production volume
MUSHROOM 3 key drivers: costs, prices, production volume GROWING Energy and transport costs, thous. EUR 5,000 Soaring energy prices severely impacted 4,000 Energy 2,105 result of the segment in Q3. 3,000 Transport Transportation costs grew by 24%, 2,000 728 2,199 1,775 energy costs almost tripled. 1
Slide 15: Mushroom growing 2022 9M results
MUSHROOM 2022 9M results GROWING Negative result affected by growing energy costs. Short term solutions: 2022 9M 2021 9M Variance 2020 9M • Production volume should reach 1000 Sold mushrooms, t 8,834 9,072 -3% 9,652 t/month; Average price (Eur/t) 2,359 2,326 +1% 2,231 • continuous negotiations for p
Slide 16: Results by segment: FMCG
Results by segment Fast-moving consumer goods (FMCG) 16
Slide 17: FMCG 2022 9M results
FMCG 2022 9M results Positive tendencies in the 3rd quarter. Inflation and logistic disruptions EUR million 2022 9M 2021 9M Variance 2020 9M create challenges for projects in export markets – growth of sales had Revenue 5.50 4.88 +13% 3.37 stalled in H1. Cost of goods sold (4.49) (3.41) +32% (3.08)
Slide 18: Main factors for EBITDA change
RESULTS Main factors for EBITDA change Crop growing and Dairy segments have the largest positive affect. Th EUR Crop growing Dairy Mushrooms FMCG IFRS 16 effect Centralized OPEX 9M2022 18
Slide 19: Projects to be implemented / further developed in 2022
OTHER INFORMATION 3 projects to be implemented / further developed in 2022 Project Plan Status Biomethane infrastructure The group is planning to operate 3 facilities by Q4 2022. Work on the infrastructure will be completed and biomethane production will start at the beginning of 2023. Theoretical a
Slide 20: Share price information
OTHER INFORMATION Share price information AUGA group, AB share price on Nasdaq Vilnius, EUR 0.7 The share price decreased by 20% 0.6 (from EUR 0.503 to EUR 0.401 per share) from the beginning of 2022 to 0.5 30th of November 2022. OMX Baltic 0.4 Benchmark GI decreased by 14% 0.3 during the same perio
Slide 21: 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 subscripti
Slide 22: Disclaimer
DISCLAIMER The information on this presentation may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and certain of the plans and objectives of the Company with respect to these items. We caution that no forward-loo
Slide 23: Organic food with no cost to nature
ORGANIC FOOD WITH NO COST TO NATURE