Consolidated Management Report 2025
1
f
AUGA group, RAB
Consolidated Management Report,
Consolidated and Separate
Financial Statements and Independent
Auditor‘s Report for the Year Ended 31
December 2025
Consolidated Management Report 2025
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Contents
1. Overview ................................................................................................................. 2
1.1 Founder’s Foreword ......................................................................................... 3
1.2 AUGA group at a Glance and the Most Important Events of 2025 ................... 6
1.3 Vision, Mission, Values .................................................................................... 7
1.4 Strategy ........................................................................................................... 8
1.5 Business Model ............................................................................................. 12
2. Results .................................................................................................................. 18
2.1. Overall Performance ..................................................................................... 17
2.2. Business Segments ...................................................................................... 19
2.3. Selling and Administrative Expenses ............................................................ 25
2.4. Capital Expenditures and R&D ..................................................................... 25
2.5. Finance Costs and Financial Liabilities ......................................................... 25
2.6. Cash Flow ..................................................................................................... 27
2.7. Information on Shares and Bonds ................................................................ 27
2.8. Summary of 2025 Results and Outlook into 2026 ......................................... 29
3. Governance report ................................................................................................ 31
3.1 Governance Model ........................................................................................ 32
3.2 Share Capital Structure and Shareholders .................................................... 34
3.3 The Board and its Committees ...................................................................... 36
3.4 Management .................................................................................................. 39
39
3.5 Information on Transactions with Related Parties .......................................... 40
3.6 Taxes and Regulatory Compliance ................................................................ 40
4. Remuneration Report ............................................................................................ 41
4.1 Remuneration Report .................................................................................... 42
5. Sustainability Report.............................................................................................. 45
5.1. General Disclosure Information .................................................................... 46
5.2 Sustainability Management ............................................................................ 50
5.3 Sustainability Strategy ................................................................................... 52
5.4 Stakeholders .................................................................................................. 53
5.5 Double Materiality Assessment of Sustainability Criteria ...............................55
5.6. Significant Impacts, Risks and Opportunities (IRO) ......................................58
5.7 Policies ...........................................................................................................62
6. Environment ...........................................................................................................63
6.1 Taxonomy Review ..........................................................................................65
6.2 Climate change E1 Climate change ...............................................................67
6.3 Biodiversity and ecosystems E4 Biodiversity and ecosystems ......................79
6.4 Circular economy (reduce, reuse, recycle) E5 Resource use and circular
economy ..............................................................................................................84
7. Employees and Social Responsibility ....................................................................88
7.1 Own Workforce ..............................................................................................96
7.2 Relations with Communities .........................................................................102
7.3 Consumers and End-users S4 - Consumers and end-users ........................106
8. Business Conduct ................................................................................................108
8.1 Business Conduct G1 – Business Conduct ..................................................109
9. Consolidated and separate financial statements .................................................115
Balance Sheets ..................................................................................................116
Statements on Profit or Loss and Other Comprehensive Income ......................118
Statements of Changes in Equity .......................................................................120
Statements of Cash Flows .................................................................................122
Notes to the Financial Statements .....................................................................124
Annexes ...................................................................................................................190
UN Global Compact Indicators ...........................................................................189
List of ESRS Disclosure Requirements ..............................................................190
List of Datapoints in Cross-cutting and Topical Standards that Derive from other
EU Legislation ....................................................................................................192
Corporate Governance Reporting Form for the Year Ended 31 December, 2025
198
Confirmation of Responsible Persons ................................................................216
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1.1 Founder’s Foreword
Dear members of the AUGA community,
The year 2025 has become a pivotal year of transformation for our organization,
forcing us to pause and assess the gap between the ambitious goals of the AUGA
group’s (hereinafter referred to as the “Company”) Strategy 2025 and the overall
situation of the AUGA group companies (hereinafter referred to as the “Group”). For a
long time, we carried the flag of green initiatives in agriculture, which weighed us down
by the end of 2024, and across the entire AUGA group (initially, restructuring was
initiated for 27 Group companies) we embarked on restructuring processes. In seeking
to fundamentally transform agriculture and set new technological standards, we had to
acknowledge that, with changing geopolitical, economic, and consumer trends,
sustainability priorities in the market have shifted. The ambition for sustainability
remains a key part of our values, but today it must be balanced with economic
sustainability and operational efficiency.
Although our mission was greater than ourselves, our long-standing work on
sustainability issues, relationships with stakeholders, public perception, and
understanding shareholders and investors helped and supported us during the most
challenging moments. We are grateful to everyone for their cooperation and
constructive solutions during one of the most uncertain years in the Group’s history.
Now it is our turn to consistently follow the steps outlined in the AUGA group
restructuring plan (hereinafter referred to as the Plan), gradually settle accounts with
creditors, and repay the trust loans received.
The group-wide restructuring process initiated on November 11, 2024, extended into
2025, but business operations did not come to a halt - they simply became more
complex. We had to start thinking about daily business operations in the context of
restructuring (primarily legal) processes, plan preparation, and active negotiations with
creditors and financiers. We returned to the fundamental assumptions of AUGA
group’s business segments, set clear simplification goals in our restructuring plans,
and cultivated the harvest for 2025.
AUGA group continued to carry out and consistently optimize its core operations: we
cultivated more than 33,000 hectares of land, developed our dairy operations and
improved livestock farming practices, and expanded our line of more sustainable
organic products for consumers. Over the year, we sold approximately 115 thousand
tons of crop raw materials and 35,000 tons of raw milk; exports accounted for 21% of
total sales.
The mentioned optimization goals led to a significant reduction in the Group’s OPEX,
which amounted to EUR 9.09 million in 2025. In particular, production costs in the crop
growing segment were substantially reduced - the gross harvest loss in 2025
amounted to EUR 4.54 million, while at the 2024 cost level it would have amounted to
EUR 9.60 million. These changes were necessary not only because the restructuring
aimed to restore the Company’s solvency and optimize operations, but also due to the
persistently low price levels of raw crops in plant growing. Continuous monitoring of
current operations allows for the assessment of the impact of prices in the crop
growing segment - if prices had remained at the 2024 level, an additional EUR 1.50
million in revenue would have been generated.
The use of digestate as organic fertilizer in organic fields is also viewed positively - in
organic fields where digestate was applied, a 23% higher yield per hectare was
achieved in 2025. Nevertheless, it must be concluded that the potential of crop
production has not yet been fully realized. The dairy segment has consistently
demonstrated profitable results for the second year in a row (EUR 5.97 million in 2025
compared to EUR 5.12 million in 2024), with the average milk yield per cow increasing
(+3%), reflecting improved herd management practices and feed quality.
One of the four strategic steps in the AUGA group’s restructuring plan included the
sale of the Baltic Champs mushroom cultivation company. Accordingly, we began
preparing to deconsolidate this business from the group and found a buyer sooner
than the Plan’s timeline had anticipated. UAB “Global Champs,” which is indirectly
affiliated with a group of agricultural and food industry companies operating in Latvia
and AS Balticovo, one of the largest egg producers in the Baltic states, evaluated not
only the mushroom cultivation production base but also potential synergies with other
business segments within its group. The transaction was completed in early 2026,
confirming our commitment to consistently implement the actions outlined in the
restructuring plan and reduce our financial liabilities. The Group’s debt level decreased
by EUR 11.6 million following this transaction.
The year 2025 also marks the end of the five-year Strategy. During this period, we
pursued an ambitious goal: to create and implement a new sustainable circular
agriculture model SOFA (Sustainable Organic Food Architecture) at our managed
operational sites, which, with the help of AUGA Tech technologies, would allow us to
grow produce at “no cost to nature” (in other words, with a minimal carbon footprint).
Innovative technological solutions were developed and brought to the prototype stage -
tractors, feed systems, and integrated biomethane production at several key organic
farms. To ensure that end consumers could benefit from more sustainable organic raw
materials, a new line of more sustainable organic products was created.
Understandably, financial uncertainties at the end of 2024 halted the accelerating
technological development plans, and dedicated teams and other necessary resources
were scaled back. This period demonstrated that such a transformation requires not
only innovation but also a favourable market cycle and guaranteed access to capital.
In this context, the results of innovation development, recorded at a specific
intermediate stage during the fourth year of the strategy’s implementation, remain at
the same stage today as we approach the end of this strategic period. Nevertheless,
the groundwork laid in sustainability technologies and the experience and insights
generated will not go to waste - efforts will be made to commercially implement these
Consolidated Management Report 2025
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elements - which not only reduce emissions but also increase efficiency – in daily
business operations.
For many years, shareholders, partners, and consumers have come to view “AUGA”
as an organization that sets ambitious goals and strives for meaningful change in the
agricultural sector. However, in the coming period, the direction of our activities will be
primarily determined by the strategic actions and changes outlined in the Plan, the
main goal of which is to restore the Company’s financial stability, strengthen trust, and
responsibly fulfil our obligations to creditors. We will return to a simpler and more
down-to-earth integrated agricultural model, based on circularity and operational
efficiency.
We are already seeing some of these changes today, while others will be implemented
and become visible in the coming years - a period during which we have the
opportunity to demonstrate the rationale of our chosen direction and consistently
restore the organization’s stability. We are confident that our team’s experience,
accumulated knowledge, and clear focus on core activities will ensure a healthy future
for the AUGA group.
I sincerely thank all employees, partners, shareholders, and the community for their
quiet understanding and support during this challenging phase in the organization’s
history.
Kęstutis Juščius
AUGA group, RAB Chair of the Board
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1.2 AUGA group at a Glance and the Most Important Events of 2025
AUGA group, RAB (hereinafter - the Company) and its subsidiaries (hereinafter - the Group, AUGA group) operate in Lithuania (with headquarter in Konstitucijos str. 21C, Vilnius). The
list of companies comprising the Group is presented in the Consolidated Financial Statements, in the
first note. The Company and the entities forming the Group have not established
and do not have any branches or representative offices in the Republic of Lithuania and/or in foreign countries. AUGA group develops organic and regenerative conventional
agriculture, applying a sustainable farming model, offers more sustainable organic products to consumers and raw materials to processors, and creates emission-reducing agricultural
technologies.
* As of 30 September 2024, the Group had reduced its cultivated area from 37.7 thousand hectares to 34 thousand hectares. This was achieved by ceasing operations in fields previously cultivated by the cooperative company 'Mažeikių
ūkiai' (3.3 thousand hectares), as well as in less fertile areas (432 hectares).
21
%
of sales is
export
21%
of sales is
export
10
th. tonnes of
mushrooms sold
35
th. tonnes of dairy
production sold
52
EUR million
revenue
3
3,5
*
th. hectares of
arable land
93
7
employees
115
th. tonnes of
crop production
production sold
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1.3 Vision, Mission, Values
Vision – a synonym for sustainable food and lifestyle.
Mission – food with no cost to nature.
AUGA group‘s activities are guided by the following core values:
sustainability, innovation, and positive impact.
Sustainability
We care not only about reducing our footprint on the
environment and our corporate social responsibility,
we are also developing new ambitious standards for
sustainability. We aim to achieve business results while
being a model for sustainability everywhere and at all times.
Innovation
Environmental protection, operational efficiency and new
standards are challenges that can only be tackled with
technology and innovation. In our team, we encourage
resourcefulness, creativity, out-of-the-box thinking,
continuous learning and new solution finding.
Positive impact
We aim to achieve the best understanding of the present
and future needs of our consumers and other stakeholders.
As leaders in our field, we initiate change, create value,
and positively impact the entire community.
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1.4 Strategy
ESRS 2 SBM-1 Strategy, business model and value chain
Agriculture is responsible for over 20% of global greenhouse gas emissions
1
. With
many years of experience and a deep understanding of the agricultural sector's
negative environmental impact, particularly in terms of emissions, in 2018, the Group
measured its operational emissions for the first time, and along with the new business
strategy announced in 2020, AUGA group set targets for their reduction.
The 2020-2025 strategy outlines the following objectives: improving efficiency across
all business segments by leveraging new technological solutions, establishing a
sustainable farming standard, and producing food with the lowest possible
environmental footprint. The five-year business strategy is publicly available on the
AUGA group website.
AUGA group sustainability strategy is an integral part of the Group’s business strategy.
It covers three key areas of sustainability: environment, social responsibility, and
sustainable governance. Sustainability directly influences the Company’s business
model and value chain elements, including monitoring and reducing the sector’s
impact, identifying risks, and implementing new opportunities. Further details on how
the Group implements sustainability principles in its operations are disclosed in the
Sustainability Report.
The following technologies and processes play a key role in implementing the
business strategy:
1 Creation of biomethane cycle infrastructure and biomethane powered vehicles,
which will enable to run farm operations without fossil fuels, using manure not only
as a fertiliser, but also as a source of biofuel production. The emissions from fossil
fuel use on farms will be reduced by 50%.
2 Specialised feed technology, which will provide an opportunity to reduce methane
emissions from ruminants by 50% (calculated per one tonne of cow‘s milk), as well
as improve milk yield.
3
Regenerative crop-rotation, which will replace cereal crops with perennial
leguminous grasses capable of sequestering carbon and fixing nitrogen in the soil.
Emissions will be reduced by 30%, calculated per tonne of dry matter of crop
production.
1
Sixth Assessment Report of the Intergovernmental Panel on Climate Change, Synthesis Report 2023
The strategy aims to implement a sustainable organic food production model, which is
consistently integrated into the Group’s long-standing circular economy model. This
model addresses the most pressing technological challenges in the food industry while
maintaining the pace of scale, quality, and yield growth.
Although the strategy remained relevant after some of the group’s companies initiated
restructuring processes in the fourth quarter of 2024, the technological development
component of the strategy was suspended. The suspension of technological
development had a direct impact on the achievement of emissions reduction targets.
Further information can be found in section “1.4.1 Strategy Implementation”.
The year 2025 marks the final year of the AUGA group’s Strategy implementation.
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1.4.1 Strategy Implementation
The end of 2025 marks the culmination of the AUGA group’s five-year 2025 Strategy.
This strategy essentially defined strategic directions and activities, setting goals to
organize the supply chain for ecological raw materials and food production more
sustainably using technologies developed within the group’s companies, thereby
reducing production emissions.
The strategy consisted of two parts - the Efficiency Agenda, aimed at improving the
performance of the group’s core business sectors, and the Innovation Agenda, aimed
at replacing traditional farming technologies with greener, emission-saving
alternatives. However, this strategy had to withstand several major external
challenges—the pandemic, climate change, which led to poorer harvests in our region,
and a downturn in the raw materials market, when prices for conventional and organic
crop products converged and the typical price premium associated with organic
production disappeared. AUGA Group had to react quickly and made difficult
decisions: it began cultivating part of its crop fields using regenerative conventional
methods and converted part of its dairy herd to conventional production.
Starting in the third quarter of 2023, part of the land began to be cultivated using
regenerative conventional farming methods. By the end of the 2025 strategy period,
the company’s total cultivated land area amounted to 33,510 ha, of which 18,590 ha
are managed according to organic farming principles, and 14,920 ha according to
conventional farming principles. Throughout the 2020-2025 period, the crop production
strategy focused primarily on improving the economic viability of organic farming by
increasing efficiency, reducing structural costs, and integrating regenerative and
circular farming practices, followed by the diversification of crop production practices,
setting efficiency targets, and establishing regenerative conventions for crop
production operations.
In 2024, the Group undertook a review of the efficiency plan for agricultural plots and
the activities conducted on them. After evaluating the productivity indicators of the
cultivated plots and long-term performance metrics, the Group decided to cease
operations on 3,300 hectares of land in the Mažeikiai region and additionally divested
432 hectares of isolated, less productive cultivated land plots located throughout
Lithuania. The plan to exit loss-generating land areas is expected to improve the
Group’s overall financial results and redirect funds toward investments aimed at
increasing the efficiency of the remaining farms.
In 2023, as market conditions in the dairy segment deteriorated, the Group took
another significant step in 2024, when 27% of livestock operations were transferred to
conventional farming, which allowed for the diversification of risks associated with the
volatility of the organic market, the generation of lower operating costs in the long
term, and the improvement of financial results. In 2025, the dairy segment
demonstrated operational stability for the second consecutive year and contributed to
the implementation of the Group’s restructuring plan, remaining a key factor in
business continuity.
The business environment and a significant decline in the need to prioritize
sustainability created a necessity to balance business-critical market trends with the
need to ensure diversification of financial risks and maintain a long-term direction while
continuing the implementation of the Innovation Agenda. However, an optimal balance
was not achieved, and on November 11, 2024, a restructuring process was initiated at
AUGA group.
The strategy’s goal of implementing significant changes in one of the world’s most
environmentally polluting industries, with the aim of gradually replacing
environmentally harmful technologies with emission-reducing technologies, would
have enabled the Group to achieve the emission reduction targets set out in its 2020-
2025 emission reduction targets set out in the strategy, but it was not fully
implemented. The Innovation Agenda goals outlined in the strategy and mentioned
above were based on an assessment of the Company’s operational emissions
conducted in 2018 across three key areas responsible for most of the greenhouse gas
(GHG) emissions. Based on these results, the Group set a goal to improve its
operational processes and develop unique technologies during the strategy
implementation period, measuring progress against the total tCO₂e and CO₂e intensity
indicators.
This strategic direction for reducing emissions and the goals set have consistently
enabled the Group to strengthen its capabilities and, step by step, build a more
sustainable food value chain, implement practices that ensure gradual emission
reductions, and develop new technologies. For the 2020-2025 period, the Group’s
portfolio of technological achievements includes: AUGA M1 (TRL 8 – pre-series
production stage) – a biomethane and electric-powered hybrid tractor; AUGA E1 (TRL
6 – prototype maturity stage) – a multifunctional agricultural platform; and Cattle Tech
(TRL 6 – prototype maturity stage) – a feed processing technology. In 2025, the
biomethane and electricity-powered AUGA M1 hybrid tractors were used under real-
world field conditions for the third consecutive season on AUGA Group fields.
Additionally, in the spring of 2024, the Group began producing biomethane from
secondary raw materials (manure). In 2025, this activity remained an important new
source of revenue for the Group and ensured the implementation of the circular
production cycle model. You can learn more about it here. It is also important to note
that the prototype of feed production and feeding technology developed by the Group,
which was evaluated and approved by scientists at LSMU VA, allows for an increase in
milk yield without affecting milk quality and a 32% reduction in methane emissions
generated by cows’ digestive processes. In early 2025, this technology received a
national patent. However, it is important to highlight that the 2024 Annual Report
stated that, due to the restructuring process initiated in the fourth quarter of 2024, the
Group decided to suspend technological development and therefore did not implement
any additional Innovation Agenda goals in 2025, nor did it allocate additional funds for
technological projects.
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During the planned period of 2020-2025, not all of the ambitious emission reduction
targets, which were closely linked to technological progress, were achieved, because
the sustainable agricultural technologies planned for use, which would have directly
determined the potential for progress toward emission reduction targets did not fully
replace the traditional fleet of agricultural machinery. Since these technologies failed to
reach the commercialization stage and, consequently, radical technological changes
were not implemented, this breakthrough did not occur. Therefore, during the 5-year
implementation period of the strategy, only incremental emission reductions were
achieved due to specific factors and changes in the Group’s operations:
- A decrease in fossil fuel consumption (t CO₂e) has been observed, driven by
agricultural machinery being deployed to fields less frequently due to
implemented measures for economic and organizational efficiency, as well as
zero-emission technology. Additionally, for several years in a row, the Group’s
electric and biomethane-powered tractors have been operating in the fields,
further contributing to emission reductions;
- Although the number of cattle has remained the same, emissions per ton of milk
produced have decreased over the past two years due to a significant increase in
yields of both conventional and organic raw milk, the introduction of a new, more
productive herd of dairy cows, and reduced emissions resulting from the use of a
portion of the generated manure in biomethane production;
- By implementing the principles of the circular economy and ensuring synergy
between different agricultural sectors and the secondary use of organic waste,
where crops grown in crop production are used for livestock feed, straw for
mushroom compost, and manure generated in dairy farming is used for
fertilization, compost production, and, starting in 2024, by diverting a portion of
slurry to biomethane production, a contribution has been made to reducing GHG
emissions, creating the conditions for emission reduction potential through
reduced methane emissions, the partial replacement of synthetic fertilizers with
organic ones, and more efficient waste utilization.
It is important to note that overall GHG emission trends were not solely downward. In
2024, a 128% increase in GHG emissions was recorded, driven by the Group’s
transition from 100% organic farming to regenerative conventional agriculture on one-
third of cultivated plots, which caused overall emission indicators to rise significantly,
particularly due to changes in agricultural practices and the use of synthetic fertilizers.
The Board’s commentary on the implementation of the 2020-2025 strategy, its scope,
and a more detailed breakdown of the targets is provided in the supplementary
document “Strategy Implementation Report,” which is published annually on the
Nasdaq portal alongside the annual report.
The Group’s Business Plans and Forecasts
The 2020-2025 strategy implementation period provided the Group with valuable
lessons, as highlighted in the previously mentioned “Strategy Implementation Report.”
The court-approved restructuring plan, which took effect on September 11, 2025, has
become the primary document defining the organization of AUGA group companies’
operations for the next four years and actively outlines the Group’s main strategic
directions and anticipated organizational changes, while maintaining a primary focus
on the Group’s core business sectors. The integrated circular agricultural model and its
synergies under economically sustainable conditions continue to be consistently
promoted.
As announced in public statements, the Group, in pursuit of greater efficiency and
lower costs, plans to continue optimizing various areas of operation, including all
production processes, land management, and administrative matters. The primary
focus in this new business phase is on activities that generate positive cash flows and
quick results, in which the Group has many years of experience and a strong
production base: crop farming, livestock farming, and the supply of products to end
consumers. The Group will also continue its biomethane production activities. This will
not only generate positive cash flows from the sale of the final product but also, using
the byproduct - digestate in crop production, which will improve yields by up to 30% on
organic farms.
The Group’s restructuring plan, which sets out more detailed operational plans and
financial forecasts, is presented in a separate document titled “AUGA group
Restructuring Plan.”
It is important to note that in 2025, the Group has already begun implementing its
planned initiatives and, as part of broader AUGA group restructuring efforts, completed
the sale of UAB “Baltic Champs.” The sale of the mushroom cultivation segment was
viewed as a necessary step in reducing financial liabilities, simplifying the Group’s
business structure, and focusing available resources on core business segments.
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1.5 Business Model
ESRS 2 SBM-1 Strategy, business model and value chain
AUGA group develops organic ad regenerative conventional agriculture applying a
sustainable farming model, provides more sustainable organic products to consumers
and raw materials to processors and has been developing emission-reducing
agricultural technologies until the fourth quarter of 2024.
1.5.1 Business Segments
AUGA group operates in five business segments, which include agriculture and food
production industries, as well as activities focused on the development and application
of sustainable agricultural technologies:
▪ Crop growing – the Group grows wheat, leguminous crops, rapeseed, sugar beet,
oats and other crops. Additionally, organic animal feed is prepared.
In 2025,
AUGA group's organic farming areas covered 18,595 hectares, while
regenerative conventional farming areas reached 14,916 hectares.
▪ Dairy – this segment of the Group includes organic milk production and cattle
breeding. The Group develops this activity in 10 dairy farms in 2025. From 2024,
27% of the cows were transitioned to conventional dairy farming.
▪ Mushroom growing – The Company's subsidiary Baltic Champs is one of the
largest and most modern mushroom growers in the Baltic region. The company
supplies consumers with white and brown champignons, oyster, portobello,
eryngii, shiitake mushrooms, and produces compost which is used for mushroom
growing.
▪ Fast-moving consumer goods (FMCG) – the Group offers a wide range of organic
products for the final consumer, which include: dairy and oat products, eggs. The
products sold by AUGA group are marked with the AUGA brand.
▪ Technologies for sustainable agriculture (AgTech) – The company AUGA Tech,
UAB, an indirect subsidiary of the company, has been developing emission-
reducing agricultural technologies until 2024. In the fourth quarter, it has been
developing emission-reducing agricultural technologies - a biomethane and
electric hybrid tractor "AUGA M1", an electric multifunctional platform-tractor
"AUGA E1". The company AUGA Tech, UAB has also been developing
specialized feed technology that reduces methane emissions from livestock
farming. Although in the context of restructuring, the Group has decided to freeze
technology development plans, except for the biomethane production branch,
which has already been commercialized and generates economic benefits. Two
companies of the Group in 2025 produced biomethane from raw materials
(manure) generated in livestock farming, and the by-product obtained in this
activity - digestate - is fully used in organic crop production as fertilizer.
The financial indicators of business segments are presented in section 2.2. Business
Segments. It is important to note that the Group does not operate and generate
revenue in the fossil fuel (coal, oil and gas), chemical production, controversial
weapons and tobacco growing and manufacturing sectors.
1.5.2 Competitive Advantages of the Group
▪ Economies of scale – the Group operates over large areas of land (33,5 th.
hectares)*. Lower labour costs and economies of scale provide a significant cost
advantage.
▪ Operational diversification – AUGA group is engaged in organic and conventional
agriculture in both of its main business segments – crop production and livestock
production. This creates the opportunity to ensure more stable financial flows and
better manage risks associated with constantly changing market conditions.
▪ Vertical integration – Group farms grow a wide range of raw materials, organise
their processing and preparation for consumption by itself or together with
outsourced production partners. This allows us to offer consumers various end-
use products, such as milk or oat products, mushrooms, eggs.
▪ Full traceability – the Group ensures high product quality and full traceability –
from seeds to packaging.
▪ Synergy between different branches of agriculture – The Group operates on a
closed-loop agricultural model, which allows supplying different business
segments with the necessary agricultural products. For example, the organic
dairy farming segment operates in synergy with organic crop growing. Crops
used for animal feed in livestock are grown for crop rotation. Biomethane is
produced from secondary raw materials (manure) of livestock farming activities,
while the byproduct of this process–digestate–is used to fertilize crop fields.
▪ Technology development and application in practice – emission-reducing
agricultural technologies are the guarantor of the future progress of the sector,
which will allow curbing the issues of climate change. Although the Group has
shifted less focus to the development of these technologies since the end of
2024, it has not abandoned these activities and will continue to develop them
when economic conditions become more favourable and demand from society,
the market, and institutions increases.
*As of September 30, 2024, the Group reduced its cultivated area from 37.7 thousand ha to 34 thousand ha, having abandoned operations in the fields previously cultivated by the cooperative company "Mažeikių ūkiai" (3.3 thousand ha) and in individual less fertile
areas (432 ha).
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1.5.3 Map of Activities
All the above-mentioned activities of the Group are carried out in Lithuania. In 2025, the Group employed 937 people. The Group operates 33.5 thousand hectares of land, including
18,595 hectares of organic farming and 14,916 hectares of regenerative conventional agriculture in 2025. Itis important to note that as of September 30, 2024, AUGA group, having
assessed the long-term results of farms and the efficiency indicators of cultivated land plots, ceased to continue part of its agricultural activities in the Mažeikiai region (3,300 thousand
ha of activities were discontinued, which were previously worked by the cooperative company Mažeikių ūkiai) and in individual less fertile areas (432 ha). The locations of the Group's
central office and activities are presented on the map below:
AUGA group, AB
Baltic Champs, UAB
Agricultural cooperatives
Dairy farms
Biomethane plants
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1.5.4. Export Markets
The Group's export markets in 2025 included countries all over the world. The list of countries to which raw materials and mushroom were exported in 2025 includes Germany, Poland,
the Netherlands, the United Kingdom, Italy, Austria, Estonia, Latvia, the Czech Republic, Finland, Norway, Sweden, Japan, Denmark and other countries. The line of more sustainable
organic products for end use has been introduced for the domestic market - Lithuania, however with some of this production being exported to the following countries: Latvia, Poland,
Slovakia, Romania, Cyprus, the United Arab Emirates, Serbia and other countries.
1.5.5 Group‘s Supply Chain
The main activities of AUGA group are disclosed in section 1.5 Business Model. AUGA
group’s supply chain is extensive and complex. Implementing the principle of a circular
economy, the Group can supply itself with some of the resources and raw materials it
needs. For example, organic waste from livestock (manure) and mushroom compost
serves as crop fertilisers, and cultivated crops are used as ingredients for cattle feed.
Also, crop products (straw) are used together with livestock manure in mushroom
growing activity.
The Group purchases fuel, seeds, fertilisers, certain raw materials, and other products,
rents or buys machinery from external suppliers (i.e. the beginning of the value
chain/inputs). AUGA group communicates directly with its suppliers and manages the
procurement of necessary resources, raw materials, and services a) centrally through
the Procurement Department; b) smaller-scale purchases are organised independently
by Company employees.
The end of the value chain/outputs are divided into three parts: a) raw materials
produced by the Group are sold to buyers or processors in Lithuania and abroad; b) the
Group manufactures end-products for consumers from its own and external raw
materials, labelled under the AUGA brand. These products are sold in retail chains
(B2C), distributed through wholesale buyers, distributors, HORECA channels (B2B), and
others. The majority of end-products are sold in Lithuania; c) the Group produces
biomethane from secondary raw materials (manure) of livestock farming activities. This
biomethane is sold to European commercial clients via a remote intake point into the
natural gas system.
More detailed information about the Group’s value chain is also provided in the
Sustainability section of this report, taking into account its links to key sustainability
topics, environmental impact, and risks, as well as detailing the Group’s companies
throughout the value chain.
The Annual Report presents general information on the
revenues and expenses of all
business segments within the Group. This is disclosed in section 2. Results.
Consolidated Management Report 2025
14
1.5.6 End-products for Consumers
In 2025, the Group continued supplying the market with more sustainable organic products under the AUGA brand. These products are made from organic raw materials grown on
AUGA group farms in Lithuania, where more sustainable farming methods are applied.
The Group also supplies organic instant oatmeal porridges to the market, with oats from AUGA
group farms as the main ingredient, making up an average of 74% of the final product. AUGA eggs are also supplied to consumers from the Group's organic farms.
Throughout 2025, the Group continued to focus on expanding its base of consumers choosing sustainable products, growing its distribution network and sales channels. During the
reporting period, AUGA group also introduced new products to the market – three flavours of yoghurt lactose-free - natural, apricot and strawberry, blueberry and raspberry. More
information about these products can be found on the website.
Organic milk products
Organic oatmeal products
Organic vegetables, etc.
Milk 3.5% fat.
Oatmeal porridge with apples and cinnamon
Eggs
Milk 2.5% fat.
Oatmeal porridge with apricots and banana
Milk 3.5% fat. UHT
Oatmeal porridge with banana and strawberries
Milk 2.5% fat. UHT, lactose-free
Oatmeal porridge with apples and raspberries
Kefir 2.5% fat.
Oatmeal porridge with wild berries
Sour cream 30% fat.
Oatmeal porridge with raisin and kiwi
Curd 9% fat.
Oatmeal porridge with pear and cherry
Butter 82% fat.
Oatmeal
Yoghurt natural 4,3% fat. (125 g and 350 g)
Instant oatmeal
Yoghurt with apricot and strawberry 3,5% fat. (125 g and 350 g)
Yoghurt with blueberry and raspberry 3,5% fat. (125 g and 350 g)
Yoghurt natural 4,3% fat. (125 g and 350 g), lactose-free
Yoghurt with apricot and strawberry 3,5% fat. (125 g and 350 g),
lactose-free
Yoghurt with blueberry and raspberry 3,5% fat. (125 g and 350 g),
lactose-free
Consolidated Management Report 2025
16
1.6 Risk ManagementESRS 2 SBM-3 Material impacts, risks and opportunities and
their interaction
with strategy and business model
The Risk Management Guidelines were approved by the Company’s Audit Committee
and independent Board in 2021. Each year, the Group’s senior management conducts
a comprehensive risk assessment, mapping risks based on their impact and
probability. These risks are then closely monitored throughout the year by both Senior
Management and the Board.
In 2025, a list of 77 risks related to key business areas was prepared and integrated
into the Group's overall annual quantitative risk assessment. Since sustainable
business guidelines and objectives are embedded in the AUGA group business
strategy, each risk, including sustainability risks, was assessed based on weighted
factors of probability and financial impact to determine the risk register. The key
risks identified for the Group in 2025 are listed below, including two sustainability-
related risks marked with sustainability theme codes.
Most of these risks gain additional aspects in the context of the Company’s and
Group’s restructuring. The Company has a limited ability to directly manage the risks
associated with restructuring, but it takes every possible measure to follow the
approved restructuring plans of the Company and Group level. The Group monitors
and manages the remaining priority risks by applying various internal control
mechanisms.
Financing restrictions. Given the capital-intensive nature of organic and regenerative
conventional agriculture, access to financing remains a key concern. The Group's high
level of borrowed capital imposes material restrictions, such as:
• Limited access to additional funding for working capital, investments,
acquisitions, and debt servicing.
• Reduced flexibility to adapt to changing market conditions, impacting growth
and strategic decision-making.
• Constraints arising from existing credit agreements, including limitations on
borrowing, asset pledging, and mergers, which could hinder expansion
efforts.
• Potential restrictions on extending the maturities of existing financial liabilities,
increasing repayment pressure and financial distress.
The restructuring processes lead to stricter financing terms, such as higher interest
rates, shorter loan tenures, or additional collateral requirements. These changes could
limit the Group’s ability to secure the necessary funds, and in some cases, there may
be no possibility at all for securing additional credit, compelling management to explore
alternative financing options.
Failure to implement the court-approved restructuring plan(s) at the Company or
Group level
including the failure to timely execute the operational and financial
measures and related payments - could result in the termination of the restructuring
proceedings of the Company or Group entities, which would negatively affect the
Company’s assets, business continuity, reputation, and the value created for
shareholders.
Production costs growing more than forecast. Production costs exceeding forecasts
pose a significant risk, particularly in the context of farming operations. Key cost
drivers include increases in labour wages, prices for seeds, fertilisers, fuel, and
equipment maintenance. Compliance with tightening organic or sustainability
standards further adds to cost pressures. External factors such as volatile weather
conditions, shifting demand for specific crops or livestock, regulatory changes, and
global commodity price fluctuations can exacerbate unpredictability.
Liquidity risk. The Group’s business model requires high working capital, particularly
due to the long production cycle in the crop-growing segment. Seasonal fluctuations in
sales volumes, combined with limited hedging options against market uncertainties,
contribute to liquidity pressures. The ongoing restructuring process further heightens
this risk, as financial institutions and suppliers may impose stricter credit terms, reduce
available funding, or require advance payments, potentially leading to cash flow
constraints and operational disruptions. Additionally, liquidity constraints
could impact the Group’s ability to meet short-term obligations, such as supplier
payments, payroll, and loan servicing, requiring careful financial management to
mitigate potential challenges.
Partial completion of restructuring across Group entities, which may result in
inconsistencies in operations and governance. There are key milestones in the
procedures spanning across the whole process of restructuring. Risks would arise in
case part of the restructuring process is not enforced, as partial or unsuccessful
Risks evaluation
Risks identification
Risk monitoring
Probability
Impact
15
Consolidated Management Report 2025
16
execution of the restructuring plan could lead to prolonged financial distress and
operational inefficiencies. Challenges such as legal disputes, regulatory hurdles, or
internal resistance could delay the restructuring process, preventing the Group from
achieving its intended financial stabilisation and strategic objectives.
Commodity prices and demand volatility (due to fluctuating prices of organic and
conventional commodities, uncertain market signals, changing
customer behaviour and preferences and etc) (E
1). Prices of both organic and
conventional commodities may be subject to significant volatility due to supply chain
disruptions, regulatory developments, seasonal factors, and broader macroeconomic
conditions. At the same time, uncertain market signals and rapidly evolving
customer behaviour and preferences may affect demand forecasts and inventory
planning. Inaccurate demand projections or sudden shifts in purchasing patterns could
lead to margin pressure, excess inventory, or supply shortages. These factors may
adversely affect the Company’s financial performance, operational efficiency, and the
effectiveness of its restructuring strategy. It is also noteworthy, that crop growing
commodity prices have been on a low point of the cycle for a couple of years in a row.
Capital risks due to poor results.
The financial performance of the Group has a direct
impact on its capital reserves. Poor results, driven by market volatility, restructuring
costs, or operational inefficiencies, could lead to reduced investor confidence, lower
equity valuations, and potential breaches of financial covenants. This risk underscores
the importance of strategic cost management and revenue diversification. Moreover,
negative financial performance could impact relationships with key stakeholders,
including investors, lenders, and suppliers, potentially leading to more restrictive terms,
reduced market confidence, and difficulties in obtaining necessary resources for future
growth.
Loss of suppliers or partners (G1). Some suppliers or business partners may have
concerns about continuing their relationship with a company undergoing restructuring,
particularly regarding the recovery of outstanding debts. As a result, payment terms may
shift, with some partners requiring advance payments rather than credit arrangements.
These changes could impact supply chains, increase procurement costs, and limit the
Group’s access to essential inputs for production. In more challenging scenarios, the
reduction or loss of key suppliers might cause operational delays, potential shortages of
raw materials, and difficulties in meeting customer demand, which could affect the
Group’s market position and financial health.
Sudden increase in land lease price. During the restructuring process, higher land
lease costs may negatively affect cash flows, profitability, and the expected benefits of
the restructuring plan. In certain cases, the Company may be unable to fully offset the
increased land lease expenses through improvements in operational efficiency or price
adjustments. Therefore, a sharp increase in land lease prices in the market, driven by
external factors such as recent inflation, may impact the Company’s financial results.
Changes in the subsidy programmes on the Common Agricultural Policy (CAP) and
national levels.
Reductions, delays, or alterations in subsidy programs may increase
operational costs, and such changes could affect the profitability and feasibility of
ongoing and planned initiatives. Changes in subsidy levels may also affect the
competitiveness of the Company’s products, pricing strategies, and investment in
organic supply chains. Consequently, uncertainty in EU and national subsidy policies
may have a material adverse effect on the Company’s cash flow, strategic flexibility,
and long-term financial stability.
Consolidated Management Report 2025
16
2. Results
2.1 Overall Performance
2.2 Business Segments
2.3 Selling and Administrative Expenses
2.4 Capital Expenditures and R&D
2.5 Finance Costs and Financial Liabilities
2.6 Cash Flow
2.7 Information on Shares and Bonds
2.8 Summary of 2024 results and Outlook into 2025
Consolidated Management Report 2025
17
2.1. Overall Performance
* The 2025 figures and their changes have been calculated excluding discontinued operations.
In 2025, the Group's sales revenue amounted to EUR 51.48 million. This is 7% less
than in the same period last year, when sales revenue was EUR 55.29 million. Sales
revenue grew in the dairy and end-use products segments, while sales decreased in
the crop segment.
The Group's gross profit in 2025 amounted to EUR 5.36 million, compared to a gross
loss of EUR 4.94 million in 2024. In 2025, the Group incurred a net loss of EUR 9.99
million, compared to a loss of EUR 32.56 million in the previous year.
Despite the challenges associated with the restructuring processes, the Group
continues to carry out daily operations in all its business segments.
Ratio calculation explanation:
EBITDA - net cash flow from operating activities before changes in working capital and
net interest paid, as it is disclosed in cash flow statement, including gain (loss) on
changes in fair value of biological assets.
Main performance indicators of the Group
2025*
2024 (adjusted)
2024
2023
Variance
2025/24
Variance
2024/23
Revenues
51,480
55,292
85,369
81,483
-7%
+5%
Direct subsidies
10,602
11,001
11,001
11,846
-4%
-7%
Gross profit (loss)
5,356
(4,942)
(3,357)
(957)
n/a
-251%
Operating profit (loss)
(2,643)
(21,085)
(20,058)
(7,977)
+87%
-151%
Finance costs
(7,082)
(11,418)
(12,328)
(10,262)
+38%
-20%
Net profit (loss)
(9,990)
(32,558)
(32,441)
(18,447)
+69%
-76%
EBITDA
9,991
75
75
1,182
13240%
-94%
Net cash flow from operating activities
3,243
5,593
5,593
(7,425)
-42%
n/a
Net cash flow from operating activities before changes in
working capital
10,560
2,949
2,949
(75)
+258%
n/a
Total non-current assets
113,809
153,108
153,108
159,728
-26%
-4%
Total current assets
36,013
49,967
49,967
68,699
-28%
-27%
Total equity
19,541
30,252
30,252
62,627
-35%
-52%
Total non-current liabilities
67,428
45,986
45,986
60,578
+47%
-24%
Total current liabilities
82,043
126,837
126,837
105,222
-35%
+21%
Non-current and current financial liabilities
119,823
131,816
131,816
127,034
-9%
+4%
Adjusted working capital
16,235
11,181
11,181
28,494
+45%
-61%
EBITDA margin, %
19.41
0.14
0.09
1.45
+14227%
-94%
Operating margin, %
(5.13)
(38.13)
(23.50)
(9.79)
+87%
-140%
Net margin, %
(19.41)
(58.88)
(38.00)
(22.64)
+67%
-68%
ROE, %
(40.13)
(70.11)
(69.86)
(26.32)
+43%
-165%
ROA, %
(5.66)
(15.09)
(15.04)
(8.02)
+62%
-87%
ROCE, %
(2.56)
(18.05)
(17.17)
(6.33)
+86%
-171%
P/E ratio
(1.61)
(0.44)
(0.44)
(3.89)
-266%
+89%
Debt/EBITDA
11.99
-
-
107.49
n/a
n/a
Equity ratio
0.13
0.15
0.15
0.27
-12%
-45%
Current ratio
0.44
0.39
0.39
0.65
+11%
-39%
Consolidated Management Report 2025
18
EBITDA margin = EBITDA / Revenues.
Operating profit margin = Operating profit (loss) / Revenues.
Net profit margin = Net profit (loss) / Revenues.
ROE = Net profit (loss) / ((Total equity at the end of reporting period + total equity at
the beginning of the reporting period)/2).
ROA = Net profit (loss) / ((Total assets at the end of reporting period + total assets at
the beginning of the reporting period)/2).
ROCE = Operating profit (loss) / (Total equity + Non-current and current portion of
non-current borrowings and lease liabilities (excluding lease related with IFRS 16)).
P/E = Last share price at the end of reporting period / earnings per share.
Debt/EBITDA = (Non-current borrowings + non-current obligations under lease +
current portion of non-current borrowings + current portion of non-current obligations
under lease + current borrowings) / EBITDA.
Equity ratio = Total equity / Total assets.
Current ratio = Total current assets / Total current liabilities.
Adjusted working capital = Current biological assets + Trade receivables, advance
payments and other receivables + Inventory – Trade payables – Other payables and
current liabilities. The adjusted working capital formula eliminates cash and financing
elements allowing the reader to see how well the short-term assets and liabilities
directly related to operations of the Group are being utilized. Total current assets and
total current liabilities are used to describe current ratio which is also included as a
key
ratio of the Group.
Consolidated Management Report 2025
19
2.2. Business Segments
2.2.1. Crop Growing Segment Overview
Results of crop growing segment consist of crop harvest fair value, sales of the previous and current year harvest and agricultural subsidies.
Harvest in the season of 2024/2025
In the 2024/2025 season, the total area of the Group's cultivated land amounted to 33.5
thousand ha and was smaller than in the 2023/2024 season. In the 2024/2025 season,
27.6 thousand ha were sown (29.6 thousand ha were sown in the 2023/2024 season), of
which 12 thousand ha were wheat, 4.2 thousand ha were legumes and 10.7 thousand ha
were other crops. The majority – 11.7 thousand ha out of 12 thousand ha – of wheat was
winter wheat, as winter crops have a higher yield potential compared to summer
alternatives. Forage crops amounted to 6.4 thousand ha in the 2024/2025 season,
compared to 7.7 thousand ha in the 2023/2024 season.
At the end of the reporting period, i.e. 2025. December 31, the entire harvest of the
2024/2025 season was harvested. For wheat, legumes and other crops, the harvest of
which was harvested before the end of the reporting period, a gain (loss) from the change
in the fair value of agricultural products on initial recognition was recorded. The harvest of
fodder crops was valued at cost.
Harvest in the season of 2025/2026
At the end of each quarter the Group evaluates the fair value of crops which have
not yet been harvested. Weather conditions in autumn 2025 were not favorable for
autumn field preparation for the 2025/2026 season. Due to prolonged rainy weather,
the sowing process took longer than usual. However, the planned sowing activities
were completed. In 2025 there were 18 thous. ha dedicated to winter crops – wheat,
triticale, rapeseed, clover, barley, peas and vicia – which will be harvested in 2026.
This accounts for 66% of the total area planned to be sown with wheat, legumes and
other cash crops in the 2025/2026 season. For comparison, in 2024/2025 season
there was 21 thous. ha of winter crops sown. The condition of winter crops at the
reporting date is good. Based on the Group’s assessment, the cold winter is not
expected to have an adverse effect on the upcoming harvest, likely due to the
formation of a thick snow cover. The Group is well prepared for the 2025/2026
season and remains optimistic about the potential of the upcoming harvest.
11.3
8.1
10.4
7.1
11.3
6.9
11.4
7.7
12.0
4.2
10.7
6.4
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Wheat Legumes Other cash crops Forage Crops
HA (tūkst.)
Cultivated land area, thousand ha
2022/2023 2023/2024 2024/2025
15 995
17 404
16 999
20 158
20 687
17 701
51%
58%
52%
66%
73%
66%
0%
10%
20%
30%
40%
50%
60%
70%
80%
-
5 000
10 000
15 000
20 000
25 000
2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026
Winter cash crops area (ha) and share of total area, %
Winter cash crops area, ha Winter cash crops share of total area, %
Consolidated Management Report 2025
21
As of 31 December 2025 the group has evaluated the gain (loss) on revaluation of
agricultural produce for crops that will be harvested in 2026. The calculation was
based on the formula given below:
Fair value of a crop = Costs incurred + (Cultivated area in ha * historical average yield
as tonnes per ha * forecasted price per tonne – cultivated area in ha * forecasted total
cost per ha) * T, where:
▪ Cost incurred is cost actually incurred for a particular crop as of 31 December
2025.
▪ Cultivated area in ha is the area of a particular crop seeded and expected to be
harvested.
▪ Historical average yield tonnes per ha.
▪ Forecasted price per tonne. Contracted average sales prices are used for fair
value estimation adjusted according to the development in the market.
▪ Forecasted total costs per ha. Average historical cost levels after evaluating the
current situation.
▪ T is the portion of time that has already passed from sowing date until the
forecasted harvest date expressed as a percentage. As of 31 December 2025,
the average completion percentage estimated for next year‘s harvest crops was
around 35%.
The above formula used to calculate the fair value of crops will also be used in the
coming quarters to calculate the fair value of winter and summer crops up to the date
of harvest. The assumptions used to calculate the fair value of crops will be reviewed
each quarter and adjusted based on the latest available data.
While valuing forage crop yields, it is important to note that the fair value of forage
crops at harvest is determined based on the total cost of harvesting the forage crops.
In other words, the total cost of harvesting the forage crops is used as a measure for
calculating the fair value of the forage crops, since there is no active trading market for
these crops and there is no possibility to reliably determine the fair market price of the
forage crops. Due to this valuation method, the result of the change in the fair value of
the forage crops is equal to zero.
The table below shows the cultivated land area by crop group in the 2024/2025,
2023/2024 and 2022/2023 seasons. The area of wheat and leguminous crops
increased in the 2024/2025 season and accounted for 62% of the total area of crops
intended for sale, compared to 61% in the previous season.
Comparison of wheat, legumes and other cultures average cost per hectare of land is
provided in the table below.
The table shows that in the 2024/2025 season, expenses per hectare of cultivated land
decreased across all presented crops compared to the previous season. This indicates
an overall downward trend in costs. The main drivers were lower labor expenses and
limited working capital, which resulted in not all planned activities being carried out.
The table below compares yield indicators for wheat, legumes, and other crops in the
2024/2025 season with previous periods. The average yield of most crops increased
compared to the 2023/2024 season. The most significant growth was recorded in the
organic crop segment, where wheat yields increased by 10% and legumes by 52%.
Yields of conventional crops also improved. These changes were mainly driven by the
introduction of digestate in organic fields, which improved soil nutrient availability and
overall crop condition. In addition, summer weather conditions were favorable for most
crops, with sufficient rainfall and suitable temperatures during the growing season.
However, yields in the “other crops” category decreased by approximately 38%, mainly
due to clover. Weather conditions were unfavorable for clover. Temperature
fluctuations and excessive moisture led to significant crop damage, and part of the
yield was not harvested due to poor quality.
Harvested land
plot by culture
group, ha
12-
month of
2025
12-
month of
2024
12-
month of
2023
Variance
2025/24
Variance
2024/23
Eco wheat
5,691
4,101
11,345
+39%
-64%
Conv. wheat
6,355
7,204
-
-12%
-
Eco legumes
2,264
3,497
8,077
-35%
-57%
Conv. legumes
1,917
3,373
-
-43%
-
Other cash crops
9,840
11,384
10,411
-14%
+9%
Average yield, t/ha
12-
month
of 2025
12-
month of
2024
12-
month of
2023
Variance
2025/24
Variance
2024/23
Eco wheat
4.39
3.98
3.55
+10%
+12%
Conv. wheat
7.02
6.31
-
+11%
-
Eco legumes
1.95
1.28
1.41
+52%
-9%
Conv. legumes
2.55
1.93
-
+32%
-
Other cash crops
3.70
6.01
5.93
-38%
+1%
Cost per 1 ha
cultivated land,
EUR/ha
12-
month of
2025
12-
month of
2024
12-
month of
2023
Variance
2025/24
Variance
2024/23
Eco wheat
1,091
1,243
1,103
-12%
+13%
Conv. wheat
1,359
1,534
-
-11%
-
Eko legumes
930
1,096
935
-15%
+17%
Conv. legumes
1,048
1,227
-
-15%
-
Other cash crops
1,128
1,485
1,266
-24%
+17%
Consolidated Management Report 2025
22
Yield of wheat in Lithuania, t/ha
Yield of leguminous crops in Lithuania, t/ha
NOTE: The data of LT organic farms for 2025 has not yet been published, the data of conventional farms in the LT is preliminary.
Reference: Lithuanian Research Centre For Agriculture And Forestry, Agricultural crop conditions and yield forecast in Lithuania
as of 25 June 2025, the Group's data.
The table below presents a comparison of the prices of wheat, legumes and other
crops, at which the harvested crop (real crop value) was estimated, for the 2024/2025,
2023/2024 and 2022/2023 seasons. It is important to note that at the time of
publication of the financial statements for the four quarters of 2025, a significant part of
the 2024/2025 season crop has already been sold or contracts have been concluded
at fixed prices for the sale of the crop, therefore the crop value at the end of the
reporting period is largely determined based on the prices of actually held contracts.
As shown by the data, the price per tonne of organic wheat increased by 9% in the
2024/2025 season, while the price of organic legumes remained stable (decreasing by
1%) compared to the previous season. In the conventional crop segment, a decline in
prices was recorded, with wheat prices decreasing by 20% and legumes by 5%. The
average price per tonne of other crops increased by 13%. Price fluctuations were
mainly driven by general market trends: conventional grain prices were affected by
increased supply in international markets, while organic product prices remained more
stable due to more limited supply. Sales timing also had a significant impact – due to
limited working capital, a large share of organic production was sold immediately after
harvest, when prices are typically lower.
The table below provides a comparison of the profit (loss) per 1 ha of cultivated land
for wheat, legumes and other crops.
3.6
2.8
3.0
3.0
2.0
5.4
4.5
4.7
4.5
4.9
5.5
4.1
3.3
3.4
3.6
4.0
4.4
6.3
7.0
0
1
2
3
4
5
6
7
8
2020 2021 2022 2023 2024 2025
LT organic wheat LT conventional wheat AUGA organic wheat AUGA conventional wheat
2.6
1.6
2.1
1.8
1.2
3.0
1.8
2.8
2.1
2.2
2.6
2.7
1.1
2.3
1.4
1.3
2.0
1.9
2.6
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2020 2021 2022 2023 2024 2025
LT organic legumesi LT conventional legumes AUGA organic legumesi AUGA conventional legumes
Gain (loss) on
revaluation of
agricultural
produce at point
of harvest,
EUR/ha
12-
month of
2025
12-
month of
2024
12-
Month of
2023
Variance
2025/24
Variance
2024/23
Eco wheat
42
(304)
(178)
n/a
-71%
Conv. wheat
(147)
(168)
-
+13%
-
Eco legumes
(75)
(530)
(273)
+86%
-94%
Conv. legumes
(466)
(767)
-
+39%
-
Other cash crops
(283)
(271)
(55)
-4%
-392%
Average price of
1 tonne of crop
eliminating sales
costs, EUR/t
12-month
of 2025
12-month
of 2024
12-month
of 2023
Variance
2025/24
Variance
2024/23
Eco wheat
258
236
260
+9%
-9%
Conv. wheat
173
217
-
-20%
-
Eco legumes
438
442
467
-1%
-5%
Conv. legumes
228
239
-
-5%
-
Other cash crops
229
202
204
+13%
-1%
Consolidated Management Report 2025
23
The 2024/2025 harvest results indicate an overall improvement in operational
performance. Organic wheat became profitable (EUR 42/ha), losses in organic
legumes decreased significantly, and losses in conventional crops also declined.
These results were driven by higher yields and reduced costs. However, overall
profitability was significantly affected by differences in sales prices and the timing of
sales. In addition, clover quality had a negative impact, as part of the crop was lost or
not harvested due to poor quality.
Forage crops results
12-
month of
2025
12-
month of
2024
12-
month of
2023
Variance
2025/24
Variance
2024/23
Cost per 1 ha cultivated
land, EUR/ha
814
956
955
-15%
0%
Average yield, t/ha
7,30
6,90
7.69
+6%
-10%
In total, as of 31 December 2025, the Group recorded a loss of EUR 4.54 million on
the fair value recognition of biological assets. It is important to note that as of 31
December 2024, the Group had already recognized a gain of EUR 0.37 million on the
fair value recognition of biological assets. At the end of the reporting period, the Group
also calculated a gain of EUR 0.30 million on the fair value change of the 2025/2026
season crops upon initial recognition. Thus, the Group included a loss of EUR 4.60
million on the fair value recognition of biological assets in the 2025 result (EUR 6.3
million less compared to 2024).
Crops value, EUR
million
12-
month of
2025
12-
month of
2024
12-
month of
2023
Variance
2025/24
Variance
2024/23
Gains (loss) from the
recognition of biological
assets at fair value are
recognized in the reporting
period
(4.91)
(11.27)
(7.24)
+56%
-56%
Gain (loss) on recognition
of biological assets at fair
value (next year's harvest)
0.30
0.37
1.29
-18%
-72%
Total gain (loss) on
revaluation of biological
assets at fair value
(4.60)
(10.90)
(5.95)
+58%
-83%
Crop growing segment sales results
Total sales revenue generated from the crop segment in 2025 amounted to EUR 28.25
million. This is EUR 7.43 million more compared to 2024. Sales revenue decreased
due to a reduction in cultivated land area and a lower overall harvest volume this year.
Crop growing
segment results,
EUR million
12-
month of
2025
12-
month of
2024
12-
month of
2023
Variance
2025/24
Variance
2024/23
Sales revenue
28.25
35.68
30.08
-21%
+19%
Cost of sales
(33.85)
(41.06)
(33.60)
+18%
-22%
One-time income
(inventory write-
offs)
2.22
(2.28)
(0.41)
n/a
-457%
Result of internal
transactions
(1.64)
(0.63)
(2.70)
-160%
+77%
Result of sales of
agricultural
produce
(5.01)
(8.30)
(6.63)
+40%
-25%
Total cost of agricultural products sold in 2025 was 33.85 million euros, 18% lower
than in the same period last year. Revenue from sales is lower than costs due to the
harvest sold at prices lower than the post-harvest prices. Internal transactions between
segments are carried out at fixed prices, and their impact in 2025 amounted to 1.64
million euros. loss.
Agricultural subsidies and gross profit in the crop segment
The total amount of agricultural subsidies for the crop segment, accumulated over the
twelve months of 2025, is 8.41 million euros and is slightly lower compared to the
corresponding period in 2024, mainly due to the decrease in the area of agricultural
land cultivated in organic methods.
The gross result of the crop segment, which includes the result of the sale of
agricultural products, changes in the fair value of biological assets and agricultural
subsidies, improved significantly in 2025 compared to the prior year. As at 31
December 2025, the segment reported a gross loss of EUR 1.20 million, compared to
a gross loss of EUR 10.48 million in the same period of 2024.
Consolidated Management Report 2025
1
Gross profit of crop growing segment, EUR million
12- month of 2025
12- month of 2024
12-month of 2023
Variance 2025/24
Variance 2024/23
Gain (loss) on revaluation of biological assets at fair value
recognised in reporting period
(4.60)
(10.90)
(5.95)
+58%
-83%
Result of sales of agricultural produce
(5.01)
(8.30)
(6.63)
+40%
-25%
Subsidies
8.41
8.71
9.04
-3%
-4%
Gross profit
(1.20)
(10.48)
(3.54)
+89%
-196%
2.2.2. Dairy Segment Overview
The total amount of milk produced in 2025 increased by 4 percent compared to the previous year, although the size of the dairy herd remained similar - 3,407 (Q1-Q4 2025), while in
Q1-Q4 2024 - 3,384. The average milk yield in the twelve months of 2025 increased by 3 percent compared to the same period last year.
Dairy sales revenue increased and amounted to EUR 19.48 million in the reporting period, compared to EUR 16.06 million in the previous year. This was driven by higher milk yields
and increased milk purchase prices.
The segment's expenses in 2025 amounted to EUR 14.39 million, i.e. EUR 1.02 million more than in the previous year. The increase in costs in the dairy segment was mainly driven
by higher livestock costs, associated with an increase in livestock value recognized in their cost at the time of sale or write-off.
The loss from the change in the fair value of biological assets (cattle herd) in 2025 amounted to EUR 1.32 million. For comparison, in the corresponding period of 2024, a profit of EUR
0.14 million was recorded.
In 2025, The group's gross profit amounted to EUR 5.97 million, representing an increase of EUR 0.43 million compared to 2024.
22.5
23.0
22.3
21.8
21.3
21.3
21.9
22.4
22.3
21.4
21.4
22.4
22.7
23.3
23.3
23.6
24.0
23.9
23.3
23.2
23.0
22.8
23.4
24.3
24.8
25.1
25.3
24.9
24.5
23.5
23.6
24.0
24.1
23.5
23.7
24.5
19.0
20.0
21.0
22.0
23.0
24.0
25.0
26.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Milk yield per cow per day, kg
2023 2024 2025
Consolidated Management Report 2025
24
12- month of 2025
12- month of 2024
12- month of 2023
Variance 2025/24
Variance 2024/23
Total quantity of products sold, t
35,825
28,961
25,720
+24%
+13%
Milk, t
34,701
27,507
23,766
+26%
+16%
Dairy commodities, t
163
497
1,077
-67%
-54%
Cattle, t
961
957
877
+0%
+9%
Revenue, EUR million
19.48
16.06
14.74
+21%
+9%
Milk, EUR million
15.30
12.79
10.38
+20%
+23%
Dairy commodities, EUR million
1.48
1.63
3.09
-9%
-47%
Cattle, EUR million
2.70
1.64
1.27
+64%
+29%
Cost of sales, EUR million
(14.39)
(13.37)
(14.97)
-8%
+11%
Milk, EUR million
(10.42)
(10.22)
(10.66)
-2%
+4%
Dairy commodities, EUR million
(1.26)
(1.52)
(3.04)
+17%
+50%
Cattle, EUR million
(2.70)
(1.64)
(1.27)
-64%
-29%
Revaluation of biological assets, EUR million
(1.32)
0.14
(3.00)
n/a
n/a
Subsidies, EUR million
2.19
2.29
2.80
-4%
-18%
Gross profit, EUR million
5.97
5.12
(0.43)
+17%
n/a
Consolidated Management Report 2025
25
2.2.3. Fast-moving Consumer Goods (FMCG) Segment
In 2025, the sales revenue of the end-use products segment was 3.75 million euros,
while in the same period in 2024 it was 3.56 million euros.
In 2025, the gross profit of the segment amounted to 0.59 million euros, compared to a
profit of 0.42 million euros in 2024.
The segment's results are improving every quarter. The growing operating result was
achieved due to the introduction of a new dairy product line to the market in the
second quarter of 2023.
FMCG segment
results, EUR million
12-
month of
2025
12-
month of
2024
12-
month of
2023*
Variance
2025/24
Variance
2024/23
Sales revenue
3.75
3.56
1.89
+5%
+88%
Cost of goods sold
(3.16)
(3.13)
(2.06)
+1%
-52%
Gross profit
0.59
0.42
(0.17)
+40%
n/a
*Segment results comprise continuing operations (excl. Grybai LT)
During the 12 months of 2025, the Group exported end-user products to 7 countries,
but the main market for the products remains Lithuania.
The structure of revenue from sales of end-user products by product type in 2025 is
presented in the graph below.
2.3. Selling and Administrative Expenses
The Group's selling and administrative expenses during the 12-month period of 2025
amounted to EUR 9.09 million compared to EUR 10.59 million in the same period last
year. In 2025, both the Company and the Group significantly reduced sales and
operating expenses. The decrease was primarily driven by optimized personnel costs.
Despite the overall reduction in expenses, the Group continued to incur costs related
to consulting as well as legal services required for the implementation of restructuring
processes.
2.4. Capital Expenditures and R&D
Total investments (additions) into property, plant and equipment amounted to EUR
2.60 million in 2024 (2024 - EUR 3.55 million). The split of investments (additions) into
property, plant and equipment is provided in the table below.
Investments (additions) into property, plant and equipment
, EUR’000
*Excluding additions related with the right-of-use assets.
Although the Group’s total investment decreased in 2025 compared to 2024,
investments in constructions used in primary production increased.
2.5. Finance Costs and Financial Liabilities
The Group’s interest-bearing debt decreased and reached EUR 83.66 million as of 31
December 2025. Finance costs (excl. IFRS 16 effect) have shifted from EUR 7.36 million
in 2024 to EUR 3.06 million in 2025:
88%
8%
4%
Revenue structure of the fast moving consumer goods
sales, %
Milk and dairy products
Grain products
Eggs
2025
2024
Land*
-
105
Buildings*
121
142
Constructions and machinery*
2,148
589
Vehicles, equipment and other*
67
1,216
Construction in progress
266
1,499
Total:
2,602
3,551
Consolidated Management Report 2025
27
2025
2024
2023
Variance
2025/24
Variance
2024/23
Current and non-current
financial liabilities, EUR
thousand
119,823
131,816
127,034
-9%
+4%
Current and non-current
financial liabilities (excl.
IFRS 16 effect), EUR
thousand
83,664
86,578
80,955
-3%
+7%
Cash and cash
equivalents, EUR
thousand
668
1,718
3,455
-61%
-50%
Organic agriculture is a working capital-intensive business, due to this reason the
Group’s debt level has historically always been fairly high.
Management of the Group believes that another important factor evaluating financial
liabilities level of the Group is net debt adjusted by working capital level. Deducting
cash and cash equivalents and adjusted working capital from the level of financial
liabilities more clearly indicates the financial liabilities that are not covered by working
capital and cash operated by the Group.
In 2025, the Group’s adjusted working capital was EUR 16.24 million compared to
EUR 11.18 million in 2024. Financial liabilities (excl. IFRS 16 effect) of the Group,
minus cash and cash equivalents minus adjusted working capital as of 31 December
2025 were EUR 66.76 million or EUR 6.92 million lower than at the end of 2024.
2025
2024
2023
Variance
2025/24
Variance
2024/23
Adjusted working
capital, EUR thousand
16,235
11,181
28,494
+45%
-61%
Net debt – adjusted
working capital*, EUR
thousand
66,761
73,679
49,006
-9%
+50%
*Adjusted working capital = Current biological assets + Trade receivables, advance payments and other receivables + Inventory –
Trade payables – Other payables and current liabilities. The adjusted working capital formula eliminates cash and financing
elements allowing the reader to see how the short-term assets and liabilities directly related to operations of the Group are being
utilized.
The decrease in the gap between net debt and adjusted working capital in 2025 was
attributable to both higher working capital and lower debt.
2.6. Cash Flow
2025
2024
2023
Variance
2025/24
Variance
2024/23
Net cash flows from
/(to) operating
activities, EUR million
3.24
5.59
(7.43)
-42%
n/a
Net cash flows from
/(to) investing activities
EUR million
(0.62)
(3.73)
4.42
+83%
n/a
Net cash flows from
/(to) financing activities,
EUR million
(3.67)
(3.60)
3.13
-2%
n/a
2.7. Information on Shares and Bonds
2.7.1. Shares
The securities of the Company are included in Main List of NASDAQ Vilnius stock
exchange (symbol: AUG1L).
Types of shares
Number of
shares
Share
nominal
value (Eur)
Total share
capital (Eur)
Issue Code ISIN
Ordinary
registered
shares
233,803,368
0.29
67,802,976.72
LT0000127466
Consolidated Management Report 2025
28
Information about the Company‘s shares trading on the NASDAQ Vilnius.
From 1 January 2025 to 31 December 2025 the share price has increased by 9.21%. The OMX Baltic Benchmark index increased by 17.50% during the respective period.
AUGA group, RAB share price, turnover and changes of OMX Baltic Benchmark index from 1 January 2023 to 31 December 2025:
Source: NASDAQ Vilnius stock exchange
0
0.1
0.2
0.3
0.4
0.5
0.6
2023-01-02
2023-01-13
2023-01-26
2023-02-08
2023-02-21
2023-03-06
2023-03-17
2023-03-30
2023-04-14
2023-04-27
2023-05-11
2023-05-25
2023-06-07
2023-06-20
2023-07-03
2023-07-14
2023-07-27
2023-08-09
2023-08-22
2023-09-04
2023-09-15
2023-09-28
2023-10-11
2023-10-24
2023-11-06
2023-11-17
2023-11-30
2023-12-13
2023-12-28
2024-01-11
2024-01-24
2024-02-06
2024-02-19
2024-03-01
2024-03-14
2024-03-27
2024-04-11
2024-04-24
2024-05-08
2024-05-22
2024-06-04
2024-06-17
2024-07-01
2024-07-12
2024-07-25
2024-08-07
2024-08-20
2024-09-02
2024-09-13
2024-09-26
2024-10-09
2024-10-22
2024-11-04
2024-11-15
2024-11-28
2024-12-11
2024-12-27
2025-01-13
2025-01-24
2025-02-06
2025-02-19
2025-03-04
2025-03-17
2025-03-28
2025-04-10
2025-04-25
2025-05-09
2025-05-22
2025-06-05
2025-06-18
2025-07-02
2025-07-15
2025-07-28
2025-08-08
2025-08-21
2025-09-03
2025-09-16
2025-09-29
2025-10-10
2025-10-23
2025-11-05
2025-11-18
2025-12-01
2025-12-12
2025-12-30
2023 2024 2025
0
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
VOLUME (UNITS)
PRICE (EUR)
Shares volume Share price OMX Baltic Benchmark GI
Reporting period
Price, EUR
Total turnover
Average
Open
Max
Min
Last
Units
EUR
2025 I-IV quarters
0.095
0.063
0.119
0.063
0.069
9,244,749
877,906
Consolidated Management Report 2025
29
2.7.2. Bonds
At the end of 2019, the Company issued green bonds for EUR 20 million nominal value. It was the first fully privately-owned listed entity in the Baltic states to issue green bonds and
one of the largest bond issues on the Nasdaq Baltic in terms of value and number of investors.
Bonds of the Company were included in Baltic Bond List of NASDAQ Vilnius stock exchange (ticker: AUGB060024A) until their maturity date, i.e. 17 December 2024. Currently, the
bonds are not listed, and in accordance with the restructuring plan, the expected redemption date is 31 December 2026.
Green bond details
Issuer
AUGA group, AB
ISIN code
LT0000404238
Listing
Nasdaq Vilnius
Denomination
1 000 Eur
Issue size
20 000 000 Eur
Term
2019-2024
Maturity date
2026-12-31
Fixed coupon rate
6% (By decision of the Company, the coupon rate is calculated by applying the act/360 convention)
2.8. Summary of 2025 Results and Outlook into 2026
The Company’s segment results for 2025 indicate an overall stabilization of the financial position and a consistent improvement in operational efficiency, despite the continued impact
of external market factors. The crop production segment significantly reduced its loss in 2025 – from EUR 10.48 million in 2024 to EUR 1.20 million in 2025. This improvement was
driven by higher yields and reduced operating costs, including significantly lower labour expenses. Part of the cost reduction was also influenced by decisions taken due to a shortage
of working capital. The segment was also negatively affected by unfavorable sales prices – due to limited financial capacity, the harvest was sold immediately after harvesting, when
market prices are typically lower. The dairy segment demonstrated steady growth in 2025, with gross profit increasing from EUR 5.12 million to EUR 5.97 million. The main drivers of
this growth were higher milk yields and slightly increased milk purchase prices, which allowed for more efficient use of existing production capacity. Overall, although the crop
production segment continued to incur a loss, the performance of other operating segments improved and contributed to offsetting these losses.
Looking ahead to 2026, the Group’s management believes that the approved restructuring plans provide an opportunity to continue focusing on operational efficiency and the
implementation of planned measures, with the aim of restoring the Group’s long-term solvency and ensuring sustainable and successful operations in the future.
31
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
(All amounts are in EUR ’000 unless otherwise stated)
3. Governance report
3.1 Governance Report
3.2 Share Capital Structure and Shareholders
3.3 The Board and its Committees
3.4 Management
3.5 Information on Transactions with Related Parties
3.6 Taxes and Regulatory Compliance
Consolidated Management Report 2025
32
3.1 Governance Model
ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies
The current corporate governance structure was introduced in 2019, when the Company changed to a one tier board structure instead of a two-tier structure, with the management
board taking over the functions of previous supervisory council.
There are three corporate bodies in the Company: the general shareholders’ meeting, the board (hereinafter – the Board), the Chief Executive Officer (CEO), and an advisory body –
the audit committee.
The general meeting of shareholders is the supreme body of the Company. The competence of the General Meeting of Shareholders and the rights of shareholders, as well as the
procedures for exercising those rights, do not differ from the competence of the General Meeting of Shareholders and the shareholder rights and their implementation as established in
the Law on Companies.
The members of the Board are elected by the general meeting in accordance with the procedure established by the Law on Companies of the Republic of Lithuania. The chair of the
Board is elected by the Board from its members for two years. The approved restructuring plan of the Company also provides that the Board shall include at least two (2) candidates
nominated by the Company’s creditors and at least one (1) candidate nominated by the Company’s shareholders who are not related to the controlling shareholder.
The Company has adopted a Human Rights, Equal Opportunities (Diversity), Non-Discrimination, Child and Forced Labour Policy, the principles of which are also applied when selecting
the Company’s Chief Executive Officer or members of the Board. In 2025, the Company’s Board was elected based on the competencies required to implement the Company’s
restructuring plan, the Group’s strategy, and to cover areas of strategic importance to the Group, such as sustainability implementation, investor relations, product development and
similar fields. In accordance with the provisions of the Company’s restructuring plan, in 2025 two elected Board members were delegated by the Company’s largest creditors, and two
elected Board members were delegated by shareholders: one member was nominated by the second-largest shareholder – the European Bank for Reconstruction and Development –
and one by a group of minority shareholders.
GENERAL
SHAREHOLDER‘S
MEETING
Shareholder’s rights
BOARD
Management and
supervisory function
2 dependant and 3
independent members
CEO
Management and
organisation function
AUDIT
COMMITTEE
Advisory function
1 dependant and 2 independent
members of the Board
Consolidated Management Report 2025
33
Until 29 August 2025 (the date of the Annual General Meeting of Shareholders), 60%
of the Company‘s board members were men and 40% were women, which complied
with the diversity and gender balance requirements set out in applicable legislation.
Following the election of the new Board composition, based on the criteria established
in the Company‘s restructuring plan, the share of women on the Board has decreased
to 0%. Consequently, the Company currently does not meet the minimum 33%
gender representation requirement set by law. Going forward, the Company will
consistently apply the equality and non-discrimination principles set out in the Human
Rights, Equal Opportunities (Diversity), Non-Discrimination, Child and Forced Labour
Policy, with the aim of promoting gender balance at the highest levels of corporate
governance. Upon the expiry of the current Board’s term, the Company will consult
with its creditors and shareholders regarding their nominated candidates to ensure
that the future Board composition complies with the diversity and gender equality
criteria established by law.
In compliance with the best corporate governance practices the Articles of the
Company determine the following functions and responsibilities of the Board:
▪ consideration and approval of the Group‘s strategy
▪ consideration and approval of the Group‘s annual budget and business plan;
▪ consideration and approval of the risk level acceptable in the Group‘s activity and
the risk management policy;
▪ consideration and approval of the annual financial and non-financial targets for
the Company‘s CEO;
▪ responsibility of overseeing and leading the Group‘s compliance with the best
corporate governance practices.
The Board also appoints, removes, and supervises the activities of the Company’s
CEO, who is in charge of Group’s management and organisation of activities. The
Board approves the Sustainability Report of AUGA group, provides comments and
insights during the process of its preparation.
The members of the audit committee are elected by the Board of the Company from
among its members, by a simple majority vote for a two-year term, which coincides
with the term of office of the committee members as members of the Board. The
Board, considering the complexity of the Company's activities and the level of risk,
may decide to increase the number of committee members and/or change its
composition. The members of the committee must be of impeccable reputation,
appropriate qualifications and experience, collegiately possessing knowledge in the
field of finance, accounting, or auditing of financial statements and in the sector, in
which the Company operates.
The audit committee operates in line with the principles, outlined in the Regulations of
audit committee of Company. The audit committee is an advisory body of the Board.
The main functions of the audit committee include:
▪ monitoring the process of the preparation of the financial statements of the
Company.
▪ monitoring the audit process of the Company.
▪ analysing the effectiveness of internal audit and risk management systems.
▪ approving the requirements for external auditors and evaluating both the
qualification and the experience of external auditors.
The CEO oversees the daily management of the Company and has the authority to
represent the Company in relations with third parties. According to the Articles of the
Company, the CEO is entitled to take decisions on transactions, which value do not
exceed 1/20 of the authorised capital of the Company. For transactions exceeding the
latter threshold, the Board’s approval is required.
The Articles of Association of the Company shall constitute a document governing the
conduct of business of the Company. The original copy of the Articles of Association
of the Company shall be kept in the custody of the Company. The Articles of
Association of the Company shall be amended following the procedure provided by
the laws of the Republic of Lithuania and Articles of Association. A resolution to
amend the Articles of Association of the Company shall be adopted by the general
meeting of shareholders with the qualified majority of at least 2/3 of votes conferred
by the shares of all shareholders present at the meeting, except in cases specified in
the Law of the Republic of Lithuania on Companies.
In 2025, taking into account the approved restructuring plan of the Company, the
Articles of Association were amended by stipulating that essential decisions related to
the transfer and/or acquisition of the Company’s and/or AUGA Group’s assets
specified in that plan, the approval of the essential commercial terms of such
transactions, decisions on the terms of transfer of the Company’s and/or AUGA
Group’s assets and liabilities to the fund, as well as other matters related to the
Company as an investor in the fund, would be adopted by the Company’s Board by a
majority of 4/5 of the votes of the Board members participating in the meeting.
Additionally, other amendments related to changes in legal regulation were
implemented.
Information regarding the scope of risks, risk management practices, and the internal
control system implemented within the Group is presented in
Section 1.6 Risk
Management.
Information on the Company’s compliance with the Code of Corporate Governance is
provided in the
Annex.
Consolidated Management Report 2025
34
3.2 Share Capital Structure and Shareholders
The share capital of AUGA group, RAB as of 31 December 2025 was EUR 67.80 million (EUR 67.80 million on 31 December 2024). The Company's authorized capital consists of
233,803,368 ordinary registered shares (233,803,368 ordinary registered shares on 31 December 2024). Each issued share has a EUR 0.29 nominal value and is fully paid.
Total number of shareholders on 31 December 2025 increased by 1,54% and was 3 617, while on 31 December 2024 this figure was 3 562.
Shareholders, who held more than 5% of all shares of the Company:
Shareholder‘s name
31 December 2025
31 December 2024
Number of shares
% owned
Number of shares
% owned
UAB Baltic Champs Group (identification code: 145798333; address: Poviliškiai v.,
Šiauliai region mun., Lithuania)
113 759 497
48,66
113 759 497
48,66
European Bank for Reconstruction and Development (identification code:
EBRDGB2LXXXX; address: 207-211 Old Street, London, EC1V 9NR, United Kingdom)
19 810 636
8,47
19 810 636
8,47
Žilvinas Marcinkevičius
15 919 138
6,81
15 919 138
6,81
Minority shareholders Proksima zeta, UAB (identification code: 306076659, address:
Vilnius, Ozo st. 12A-1)
12 927 263
5,53
12 927 263
5,53
Minority shareholders
71 386 834
30,53
71 386 834
30,53
Total:
233 803 368
100,00
233 803 368
100,00
Shareholders distribution by country and by type is as follows:
Country
Type
Owned shares, units
Owned shares, %
Lithuania
Legal entities
164 749 743
70,47%
Natural persons
18 399 954
7,87%
Other countries
Legal entities
30 497 655
13,04%
Natural persons
20 156 016
8,62%
Total:
Legal entities
195 247 398
83,51%
Natural persons
38 555 970
16,49%
On 31 December 2025, the following part of the shares was managed by the
Company's management and the members of the Board:
Name, Surname
Position
Owned shares
in the Company,
units
Owned shares in
the Company, %
Elina Chodzkaitė-
Barauskienė
CEO (until 2026
March)
41 000
0,018
Kęstutis Juščius*
Chair of the Board
1 392
0,0006
Laurynas Miškinis
CEO (after 2026
March)
155 000
0,066
*Kęstutis Juščius, Chair of the Board, is the ultimate owner of Baltic Champs Group UAB, controlling 48.66% of the Company’s
shares.
Consolidated Management Report 2025
35
3.2.1 Information on Own Shares
The Company has not acquired any of its own shares.
3.2.2 Transfer Restrictions
Laws and the Articles of Association do not provide restrictions on the transfer of
shares. Separate share transfer restrictions are possible but can only be imposed by
the shareholders and only in agreed-upon cases.
3.2.3 Information on Significant Agreements, Which Could be Affected by the Change
in Shareholders Structure
Bank loans and financial lease agreements of Group companies, including the
Company, have a change of control clause at the Group level which is standard
practice for such agreements. The Company or the Group has not entered into any
other significant agreements whose validity, amendment and termination could be
affected by a change in shareholder structure.
3.2.4 Agreements Between the Shareholders
According to 31 December 2025 data it is not known, or the Company has not been
informed about any agreements between shareholders.
The company, its main shareholder Baltic Champs Group, UAB, Kęstutis Juščius and
the European Bank for Reconstruction and Development (EBRD) on 19 July 2018
entered into an agreement on the basis of which Baltic Champs Group, UAB
undertook to vote for the candidate nominated by the EBRD as a member of the
Board, as long as the EBRD controls at least 3% of the Company's shares. The
Company also undertook to comply with certain environmental protection, social
compliance, corporate governance recommendations and requirements. Considering
this, this agreement by its nature cannot be considered as a shareholder’s agreement.
3.2.5 Investor Relations
Stakeholder engagement is one of AUGA group's top priorities in implementing
sustainable management practices. The Group aims to ensure that investors are
regularly informed about the Group's activities and results, thereby creating an open
and reliable relationship with one of the most important groups of stakeholders of
AUGA group. In 2025, the operations of the Company and the Group were carried out
in the context of a restructuring process; therefore, communication with investors was
focused on the timely and transparent disclosure of information regarding the approval
and implementation of the restructuring plan. Considering the restructuring process
and seeking to manage costs responsibly, the Board of the Company made decisions
at the end of 2024 to discontinue the provision of market maker services and to cease
the preparation and publication of interim financial information. As a result of these
decisions, the Company has not prepared or published interim consolidated financial
statements for three, nine, and twelve-month periods since the end of 2024. The
Company continues to disclose financial information about itself and its subsidiaries in
compliance with mandatory requirements applicable to issuers, including unaudited
consolidated half-year financial information and audited consolidated annual financial
information. Despite a reduced frequency of financial reporting, the Company remains
committed to ensuring transparent communication with investors.
Consolidated Management Report 2025
36
3.3 The Board and its Committees
ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies
The Articles provide that at least 1/3 of the Board members must be independent. In
2019, the general shareholders’ meeting approved independency criteria for members
of the Company’s collegiate bodies, which comply with the independency criteria
established by the Law on Companies of Republic of Lithuania, ensuring, that to be
independent, a member must not be related with the Company and/or its controlling
shareholder
2
.
3
Separation of powers is clearly defined in the management model of
AUGA group, therefore the CEO of the Company, according to the current procedure
of the Company, cannot be a member of the independent Board and is directly
subordinate to this management body.
Based on legal acts and the self-assessment:
▪ members of the Board (60%) Peter Bryde, Andrej Cyba and Linas Strėlis are
considered as independent members of the Board.
▪ 2 Board members (40%) are considered as dependent members of the
Board: (i) Kęstutis Juščius is deemed to be a dependent member of the
Management Board as he is the sole owner and Chair of the Management
Board of the Company's controlling shareholder, Baltic Champs Group, UAB,
as well as a director of the Company's directly controlled company AUGA
Community, UAB and the Company's indirectly controlled company AUGA
Tech, UAB; ii) Aleksandras Šutovičius is regarded as a non‑independent
Board member as he is the Chief Executive Officer of Okseta, UAB, which
holds more than half of the Company’s outstanding Green Bonds and is one
of the Company’s largest creditors.
Information on the members of the Company’s Board up to 29 August 2025 (the date
of the Annual General Meeting of Shareholders):
Name, Surname
Position
Status
Appointment day
Peter Bryde
Member
Independent
07.11.2023
Andrej Cyba
Member
Independent
07.11.2023
Kristina
Daudoravičienė
Member
Dependent
07.11.2023
Kęstutis Juščius
Chair
Dependent
07.11.2023
Justina Klyvienė
Member
Independent
07.11.2023
During the period from 1 January 2025 to 29 August 2025, nine meetings of the Board
were held. Throughout this period, all five Board members participated in every
meeting (all Board meetings had a quorum in accordance with applicable legislation
and the Company’s Articles of Association).
60% of this term Board members are men and 40% are women.
Information on the members of the Company’s current Board (as of 29 August 2025):
Name, Surname
Position
Status
Appointment day
Peter Bryde
Member
Independent
29.08.2025
Andrej Cyba
Member
Independent
29.08.2025
Kęstutis Juščius
Chair
Dependent
29.08.2025
Linas Strėlis
Member
Independent
29.08.2025
Aleksandras
Šutovičius
Member
Dependent
29.08.2025
During the period from 29 August 2025 to 31 December 2025, four meetings of the
Board were held. Throughout this period, all five Board members participated in every
meeting (all Board meetings had a quorum in accordance with applicable legislation
and the Company’s Articles of Association).
100% of the members of the current Board are men.
The term of office of the current Board will continue until the Annual General Meeting
of Shareholders to be held in 2027.
Each year, the Group’s Board conducts a self-assessment of its activities. This
evaluation includes an assessment of the Board’s structure, the organization of its
work and its ability to function as a group, as well as an assessment of each Board
member’s competence and work efficiency, and whether the Board achieved the
established operational objectives.
2
The independence criteria for Board members are set out in Article 33(7) of the Law on Joint Stock Companies of the Republic of Lithuania; the independence criteria for the Board members of the Company, approved by the 2019 General Meeting of
Shareholders, are available here.
Consolidated Management Report 2025
37
3.3.1 Board Members
STAGE 2 GOV-1 The role of administrative, management, and supervisory bodies
Andrej Cyba
Education, qualification: Vilnius University, Management and Business Administration, Bachelor degree.
Activity at AUGA group: Member of the Board of AUGA group, RAB (legal form: Public Limited Company, code:
126264360, registered address Konstitucijos ave. 21C, Vilnius, Lithuania) (2019 – present).
Main activity: none.
Other: Board member of AB „Vilkyškių pieninė“ (legal form: Public limited company, code 277160980, registered address:
Prano Lukošaičio g. 14, Vilkyškiai, Pagėgiai district municipality, Lithuania) (2008 – present); CEO of UAB Piola (legal form:
private limited liability company, code 120974916, registered office address: Mindaugo g. 16-52, Vilnius, Lithuania) (2009-
present); CEO of UAB “PEF GP2” (legal form: private limited liability company, code 302582716, registered office address:
Maironio g. 11, Vilnius, Lithuania) (2012 – present), Chairman of the Board of "INVL Finasta", UAB FMĮ (legal form: Private
limited company, code: 304049332, registered address: Gynėjų str. 14, Vilnius, Lithuania) (2016 – present); Chief Business
Development Officer of “INVL Asset Management“, UAB (legal form: Private limited company, code 126263073, registered
address: Gynėjų str. 14, Vilnius, Lithuania) (2016 – present); Chairman of Supervisory Board of IPAS "INVL Asset
Management“ (legal form: Private limited company, code: 40003605043, registered address: Smilšu 7-1, Riga, Latvia)
(2016 – present); Chairman of the Supervisory Board of “INVL ATKLĀTAIS PENSIJU FONDS“, AS (legal form: Public
limited company, code: 40003377918, registered address: Smilšu 7-1, Riga, Latvia) (2016 - present); Chairman of the
Board of "VOKĖ-III", UAB (legal form: Limited liability company, code: 120959622, registered address: Piliakalnio str. 70,
Nemenčinė, Lithuania) (2020 – present), CEO (2023 – present); Board Member of SIA “Baltic Dairy Board” (legal form:
Private limited company, code: 43603036823, registered address: Stacijas 1, Bauska, Latvia) (2021 – present); CEO of
“LAMA Capital”, UAB (legal form: Limited liability company, code: 306178639, registered address: Šaltinių str. 24-10,
Vilnius, Lithuania) (2022 – present); CEO of UAB "V3 Installation Solutions" (legal form: Private limited company, code
124100519, registered address: Pašilaičių g. 14-74, Vilnius, Lietuva) (2023 – present).
Aleksandras Šutovičius
Education, qualifications: Higher education, integrated (long-cycle) studies in law, Master’s degree in Law.
Activity at AUGA group: Member of the Board of AUGA group, AB (legal form: public limited liability company; company
code: 126264360; registered address: Konstitucijos Ave. 21C, Vilnius, Lithuania) (2025 – present).
Main activity: Chief Executive Officer of UAB Okseta (legal form: private limited liability company; company code:
161410513; registered address: Biruliškių St. 18A, LT-52174, Kaunas) (2019 – present).
Consolidated Management Report 2025
38
Peter Bryde
Education, qualification: Copenhagen Business School, Business Administration bachelor’s degree, Finance and
Accounting master’s degree; attended the Agricultural Business Seminar at Harvard University (2011).
Activity at AUGA group: Member of the Board of AUGA group, RAB (legal form: Public limited company, code: 126264360,
registered address Konstitucijos ave. 21C, Vilnius, Lithuania) (2023 – present).
Main activity: Director Private Equity at FMO, the Dutch Entrepreneurial Development based in the Hague, the Netherlands
(December 2024 – present).
Other: Member of the Board of Tietgen Pension Aps, Denmark (February 2025 – present).
Linas Strėlis
Education, qualifications: Kaunas Polytechnic Institute, Faculty of Mechanical Engineering, 1991.
Activity at AUGA group: Member of the Board of AUGA group, AB (legal form: public limited liability company; company
code: 126264360; registered address: Konstitucijos Ave. 21C, Vilnius, Lithuania) (2024 – present).
Main activity: Director of UAB Biglis (legal form: private limited liability company; company code: 133688345; registered
address: Jonavos St. 7, LT-44263, Kaunas) (1993 – present);
Other: Member of the Board of UAB Investicija kubu (legal form: private limited liability company; company code: 305818634;
address: Mituvos St. 2, LT-50131, Kaunas) (2023 – present); Member of the Board of UAB Raudona saulė (legal form: public
limited liability company; company code: 302865867; registered address: A. Mickevičiaus St. 56-2, LT-04424, Kaunas) (2023
– present); Member of the Board of AB Vilkyškių pieninė (legal form: public limited liability company; company code:
277160980; address: Prano Lukošaičio St. 14, Vilkyškiai, LT-99254, Pagėgiai) (2008 – present); Member of the Board of AB
East West Agro (legal form: public limited liability company; company code: 300588407; registered address: Sausinės St. 1,
Sausinės village, LT-54312, Kaunas district) (2018 – present); Member of the Board of AB Umega Group (legal form: public
limited liability company; company code: 126334727; registered address: Metalo St. 5, LT-28216, Utena) (2016 – present);
Member of the Investors’ Committee of Lords LB Baltic Opportunity AB (legal form: public limited liability company; company
code: 306484707; registered address: Jogailos St. 4, LT-01116, Vilnius) (2024 – present); Member of the Board of UAB
Galinta (legal form: private limited liability company; company code: 134568135; Veiverių St. 51C, LT-46336, Kaunas) (2024
– present).
Kęstutis Juščius (Chair)
Education, qualification: Vilnius University, Business Administration, Bachelor’s degree.
Activity at AUGA group / Main activity: Chair of the Board of AUGA group, RAB (legal form: Public limited company, code:
126264360, registered address Konstitucijos ave. 21C, Vilnius, Lithuania) (2023 – present).
Other: Chair of the Board of Baltic Champs Group, UAB (legal form: Private limited company, code: 145798333, registered
address: Poviliškių v. Šiauliai district municipality, Lithuania) (2014 - present); President of Lithuanian Mushrooms Growers
and Processors Association (legal form: Association, code: 124135819, registered address: Zibalų str. 37, Širvintos,
Lithuania) (2013 – present); CEO of AUGA Community, UAB (legal form: Private limited company, code: 302820797,
registered address Konstitucijos ave. 21C, Vilnius, Lithuania) (2022 – present); CEO of AUGA Tech, UAB (legal form: Private
limited company, code: 302820808, registered address: Taikos ave.131b Kaunas, Lithuania) (2023 – present).
Consolidated Management Report 2025
38
3.3.2 Board Committees
The Company has one committee – audit committee. The audit committee is an advisory body of the Board in the areas of accounting, auditing, risk management, internal control and
auditing, supervision, budgeting, and legality of operations. Its functions are described in the
section 3.1. Governance model. 67% of the audit committee consists of men.
Information on the members of the Audit Committee up to 29 August 2025 (the date of the Annual General Meeting of Shareholders):
Name, Surname
Position
Status
Peter Bryde
Member
Independent
Andrej Cyba
Chair
Independent
Kristina Daudoravičienė
Member
Dependent
During the period from 1 January 2025 to 29 August 2025, five meetings of the Audit Committee were held.
All Audit Committee meetings had a quorum in accordance with applicable legislation and the Audit Committee Regulations of the Company. All members of the Audit Committee
participated in every meeting.
During this period, 67% of the members of the Audit Committee were men.
Information on the members of the current Audit Committee (as of 29 August 2025):
Name, Surname
Position
Status
Peter Bryde
Member
Independent
Andrej Cyba
Chair
Independent
Aleksandras Šutovičius
Member
Dependent
During the period from 29 August 2025 to 31 December 2025, three meetings of the Audit Committee were held. All Audit Committee meetings had a quorum in accordance with
applicable legislation and the Company’s Audit Committee Regulations. All members of the Audit Committee participated in every meeting.
100% of the members of the Audit Committee are men.
Consolidated Management Report 2025
39
3.4 Management
Elina Chodzkaitė-Barauskienė, CEO (2023 – March 30, 2026)
Education, qualification:
Diplomatic Academy of Vienna, Master of Advanced International Studies, University College
London (UCL), Bachelor of Arts (BA) in Politics and Eastern European Studies.
Activity at AUGA group/Main activity: CEO of AUGA group, RAB (legal form: Public Limited Company, code: 126264360,
registered address: Konstitucijos ave. 21C, Vilnius, Lithuania) (2023 – March 30, 2026).
Other: Director of MB Digital Alchemy (legal form: Small partnership, code: 305532412, registered address: S. Stanevičiaus g.
42A, Vilnius, Lithuania) (2022 - present).
Laurynas Miškinis, CEO (March 31, 2026 – now)
Education, qualification: Vilnius University, International Business School, Bachelors degree in Business
Management.
Activity at AUGA group/Main activity: AUGA group, RAB (legal form: Public Limited Company, code: 126264360,
registered address: Konstitucijos pr. 21C, Vilnius, Lithuania) CEO (March 31, 2026 – now).
–
Užimamos pareigos: AUGA group, RAB (
–
Kristupas Baranauskas, CFO (February, 2024 – now)
Education, qualification: Vilnius University, Master’s degree in Accounting and Audit.
Activity at AUGA group/Main activity: AUGA group, RAB (legal form: Public Limited Company, code: 126264360,
registered address: Konstitucijos pr. 21C, Vilnius, Lithuania) CFO (February, 2024 - now).
Consolidated Management Report 2025
40
3.5 Information on Transactions with Related Parties
Information on transactions with related parties is disclosed in the explanatory notes (note 32) of the consolidated and separate financial statements for the year ended 31 December
2025.
3.6 Taxes and Regulatory Compliance
As stated in the AUGA group Code of Business Ethics, the Group complies with all applicable tax laws and seeks to ensure that its obligations to the state are fulfilled transparently,
responsibly and on time.
During the reporting period, the Group did not have any significant violations of legal acts or sanctions imposed that would have a material impact on the Group, its activities or the
interests of stakeholders.
Given that some of the Group’s companies are currently undergoing restructuring, in individual cases the Group’s companies experience difficulties in meeting their tax obligations on
time, however, the Group makes every effort to ensure that tax obligations are fulfilled properly and on time.
Consolidated Management Report 2025
42
4.1 Remuneration Report
The Remuneration Report of the Company has been prepared for the financial
reporting year 2023, which coincides with the calendar year. The Report is a part of
the Consolidated Annual Report of the Company prepared in accordance with the Law
on Financial Statements of Entities of the Republic of Lithuania, the Remuneration
Policy of the Company, and other legal acts.
At the Company's general meeting of shareholders, the vast majority of shareholders
(76,68% of shareholders attending the meeting) approved (voted in favor of) the
Company's remuneration report, which, as part of the Company's consolidated annual
report, is publicly published on the Company's website.
4.1.1 Management Bodies Remuneration
The Company’s management bodies include the members of the Board and the Chief
Executive Officer (6 persons).
The members of the Board receive the following remuneration for the performance of
Board member functions
:
▪ EUR 2,280 (before taxes) for the members of the Board, and EUR 3 000
(before taxes) for the Chair of the Board, irrespective of the annual number of
the Board meetings.
▪ For the Board members living abroad – compensation of travel and
accommodation costs for/during attendance of the board meeting – not
exceeding EUR 500 + VAT (Lithuanian tariff) in respect to one Board meeting
in which he/she participated; if the Board member participates in a meeting
via communication/IT measures (not physically traveling to Lithuania), travel
costs compensation shall not be paid for such participation.
The remuneration of the CEO of the Company includes an official monthly wage and
additional benefits granted irrespective of performance results and paid to all
employees meeting the established criteria in accordance with the Group’s procedures
in force. In addition to the official monthly wage or remuneration received in a different
form, the CEO can be included in the employee share option programme.
The remuneration paid to the Board and the CEO is in accordance with the Company's
Remuneration Policy for the Executive Management, which was approved by the
general meeting of shareholders and is publicly available on the AUGA group’s
website. The Company and its collegial bodies‘ members have not concluded any
agreements regarding compensation in the event of resignation, unjustifiable
redundancy, or change in ownership structure.
The amount of accrued fixed remuneration for the Board members is provided in the table below:
The amount of accrued fixed remuneration for the Audit Committee members:
Renumeration of the individual members of the Audit Committee, EUR
2025
Peter Bryde (2023 11 07 – now)
4 500
Andrej Cyba (2023 11 07 – now)
11 256
Kristina Daudoravičienė (2023 11 07 – 2025 08 29)
3 915
Aleksandras Šatovičius (2025-08-29 – now)
1 958
Total:
21 629
Remuneration of the individual
members of the Board, EUR
2025
2024
2023
2022
2021
Kęstutis Juščius, Chair of the
Board (2023 11 07 – now)
36 000
36 000
6 000
-
-
Andrej Cyba (2019 – now)
27 360
27 360
27 073
24 700
19 000
Peter Bryde (2023 11 07 – now)
27 360
27 360
4 560
-
-
Justina Klyvienė (2023 11 07 –
2025 08 29)
18 240
27 360
4 560
-
-
Kristina Daudoravičienė (2023 11
07 – 2025 08 29)
18 240
27 360
5 539
-
-
Linas Strėlis (2025-08-29 – now)
9 120
-
-
-
Aleksandras Šutovičius (2025-08-
29 – now)
9 120
-
-
-
-
Total:
145 440
145 440
47 732
-
-
Consolidated Management Report 2025
43
4.1.2 Employee remuneration
In 2025, no members of the Board were granted share options. The Company did not pay variable remuneration to the members of the Board during 2025.
The average monthly remuneration of the Group's employees before taxes for the reporting period is presented below:
It is important to note that in 2019, significant changes were implemented in the Company's governance structure and the Board was formed. Until April 30, 2019, the Board members
were employees of the Group who did not receive any additional remuneration for performing the functions of a Board member. The Board members, who were also employees of the
Company, received remuneration only for the performance of their direct work functions as wages or remuneration for legal services (the positions of Board members were occupied
by the Group's in-house lawyers, the General Director). Thus, the historical remuneration figures for the Board members are not comparable with the remuneration of the current
Board members and do not allow assessing the dynamics of the remuneration of management members over the long term.
The table below presents the accrued salaries and remuneration for the Board members:
2 Members of the Board of the Company received payments from the Company's subsidiaries during 2025. Board member Kristina Daudoravičienė received EUR 38,405.17 in
remuneration (before taxes) from the company Baltic Champs, UAB for her position as the CFO during the reporting period. Chairman of the Board Kęstutis Juščius received EUR
44,724 in remuneration (before taxes) from the company AUGA Community, UAB for her position as the Director during the reporting period and EUR 44, 828in remuneration (before
taxes) from the company AUGA Tech, UAB for his position as the Director during the reporting period.
Elina Chodzkaitė-Barauskienė, who became the General Director of the Company on 7 November 2023, in 2025 was paid a one-time bonus of EUR 26,085.50. No stock options were
granted in 2025. More information about the Group’s employees is provided in the AUGA group Sustainable Business Report section Information about the Group’s employees.
Average salary of Group employees before taxes, EUR
2025
2024
2023
2022
2021
CEO
10 259
7 477
7 728
7 498
7 584
Management staff
4 050
4 022
3 787
3 710
3 414
Specialists
2 659
2 347
2 196
2 036
1 893
Employees
1 838
1 588
1 425
1 243
1 209
Other indicators
2025
2024
2023
2022
2021
Average salary of Group employees (excluding CEO) before taxes, EUR
2 222
1 886
1 707
1 509
1 469
Net profit (loss), thousand EUR
(10 715)
(32 441)
(18 447)
(5 351)
(15 435)
Remuneration of the Company's Board members, EUR
2025
2024
2023
2022
2021
Total remuneration
145 440
145 440
117 011
131 300
107 300
Number of Board members
5
5
10
5
5
Average annual remuneration per member
29 088
29 088
11 701
26 260
21 460
Consolidated Management Report 2025
44
4.1.3 Stock option program
In 2025, the Group's specialists and management staff did not implement the option
programs, which had been in place since 2019 as an additional incentive measure, due
to restructuring, and no stock options were granted.
Information about the option program:
The employee stock option program provides long-term benefits to employees and
increases their motivation. Under the plan, participants are granted options to acquire
the Company's shares free of charge, which are granted only if the employee fulfils the
condition of 3 years of employment with the Group. Having fulfilled this condition, the
employee may exercise the option.
The option ceases to be valid if the Company's restructuring, bankruptcy, liquidation or
similar procedures are initiated, which continue and/or end with the liquidation of the
Company. Also, if both parties (the Company and the recipient) agree to terminate the
option transaction and if the recipient has caused damage to the Company by his/her
action or inaction. Due to the restructuring process of AUGA group, AB, which entered
into force in 2025, the unrealized stock option agreements for 2022–2024, which
should be realized during restructuring, will be reviewed as soon as possible after the
restructuring process is successfully completed.
These share payments to employees are made only in equity securities (shares). Upon
the exercise of each option transaction, it may be converted into one ordinary share.
The shares will be issued from the reserve formed for granting shares to employees
(formed and approved by the current shareholders), with a nominal value of EUR 0.29,
thereby increasing the Company's authorized capital.
The options are granted free of charge under the program. Employees who exercise
the options and receive shares of the Company will have to pay income tax at the time
of exercise of the option, in accordance with applicable laws.
2025
2024
2023
2022
Number of employees participating
0
228
255
238
Number of shares allocated
0
2 148 480
2 199 523
1 651 185
Consolidated Management Report 2025
45
5. Sustainability Report
5.1 General Disclosure Information
5.2 Sustainability Management
5.3 Sustainability Strategy
5.4 Stakeholders
5.5 Double Materiality Assessment of Sustainability Criteria
5.6 Significant Impacts, Risks and Opportunities (IRO)
5.7 Policies
Consolidated Management Report 2025
46
5.1. General Disclosure Information
ESRS 2 BP-1 General basis for preparation of sustainability statements
ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability
statement
The Sustainability Report is a review of AUGA group activities, publishing annually since
2017. The latest AUGA group Sustainability Report for 2024 was released in 2025 on
August 7
th
.Unless specified otherwise, the Sustainability Report for 2025 covers the
activities of all the Group’s companies in the period from 1 January until 31 December
2024. In order to objectively assess the dynamics of activity changes, AUGA group also
includes data from previous years. The Sustainability Report for 2025 is a part of the
Consolidated Annual Report, which is published on the Nasdaq Baltic website and the
AUGA group website. Unless otherwise stated, the information contained in this report
covers all the Group’s companies. Separate sustainability reports are not prepared for the
Group's subsidiaries.
The 2025 Sustainability Report outlines the key activities and achievements of the Group
in the areas of environmental, social, and governance (ESG) during the reporting year.
The report discloses how the Group’s operations impact the environment, communities,
consumers, and employees. Additionally, it highlights how the Group addresses various
risks and describes the measures implemented to ensure sustainability.
The information required for the preparation of the Sustainability Report is collected with
the involvement of the Group employees whose direct functions result in realisation of
sustainability topics in Group’s activities. To ensure comprehensive data collection across
all Group activities, managers and specialists from different levels, including production
and administrative departments, are engaged in the process. The gathered information is
analysed and consolidated with the support of the Group’s financial analysts, HR,
sustainability, legal, and other specialists. The complete Sustainability Report is approved
by the Group's management and Board members. The 2025 Sustainability Report was
audited by “Grant Thornton Baltic”.
Additionally, the Sustainability Report provides information about the Company's value
chain. The Company's impact on the environment and society is assessed across the
Group's entire business chain, risks are assessed and policies and procedures, specific
actions (e.g. circular economy principles and technological innovations) are indicated
accordingly, helping the Group to achieve efficiency indicators while also responding to
priority sustainability topics. Since 2017, stakeholders with touchpoints at different stages
of the Group's business chain have also been surveyed, in order to create an assessment
of the Company's materiality and identify priority sustainability topics. Based on the latest
assessment of the materiality of stakeholders (including consumers, customers, suppliers,
etc.) and the Group's management, the most relevant impact topics have been compiled.
AUGA group publishes its activity reports in accordance with the regulations applicable to
companies whose shares are traded on a regulated market. The Group's Consolidated
Annual Report, which integrates the Sustainability Report, complies with the requirements
set forth in the legal acts of the Republic of Lithuania for such reports, as well as with the
European Parliament and Council Directive (EU) 2022/2464 on corporate sustainability
reporting (the Corporate Sustainability Reporting Directive, hereinafter – CSRD).
The report also discloses information in accordance with the European Parliament and
Council Regulation (EU) 2020/852 on establishing a framework to facilitate sustainable
investment (hereinafter – the Taxonomy Regulation), which defines a classification system
for sustainable economic activities and investments, for the portion of the Group's
activities to which the regulation applies. In preparing the 2025 Sustainability Report,
AUGA group follows the disclosure requirements of the European Parliament and Council
Directive (EU) 2022/2464 on corporate sustainability reporting (hereinafter – ESRS). To
enhance efficiency and improve reader convenience, the Group has decided from 2024 to
report data in accordance with ESRS disclosure standards and to discontinue the use of
previously applied GRI and Nasdaq indicators, as they significantly overlap with ESRS
requirements. This high level of alignment between ESRS and GRI indicators was
confirmed in a joint statement by EFRAG and GRI announcement.
3
To disclose information about its impact on the environment, people, and society, AUGA
group also provides its sustainability data to Nasdaq. From 2019 to 2023 (inclusive), the
Group voluntarily conducted an external audit of emissions each year, engaging the
independent auditing company Carbon Footprint to refine its emissions calculation
methodology, which was finalised and approved in 2023. As the Group did not perform
any methodological changes in its emissions disclosure for 2025, it was decided to adhere
to the methodological principles approved in 2023, and therefore no additional voluntary
emission calculation audit was conducted for 2025.
AUGA group always strives for consistency and tries to present the publicly released
datasets in an informative, convenient, and standard format. Although the disclosure
indicators for 2025 have changed,
the Group aimed to align previous disclosure practices
with the new ESRS disclosure and labelling structure to ensure reader convenience.
Information about all ETAS disclosure requirements that were followed in preparing the
Sustainability Report, and their compliance with other regulations, is provided in the
Annexes.
3
EFRAG-GRI joint statement of interoperability
Consolidated Management Report 2025
47
Healthy and affordable food
Food labelling, safety, and prices
Sustainable sourcing
Genetic diversity of farmed and domesticated animals
Labour practices in the supply chain
Occupational health and safety
Access to medicine
Access to quality essential health care services
Air quality
Water quality
Employment
Non-discrimination
Capacity building
Availability of a skilled workforce
Elimination of forced or compulsory labour
Infrastructure investments
Access to financial services
Environmental investments
Research and development
Sustainable sourcing
Resources efficiency of products and services
Material recycling
Procurement practices
Product and services information and labelling
Energy efficiency
Environmental investments
GHG emissions
Risks and reduction opportunities due to climate
change
Deforestation and forest degradation
Genetic diversity of farms and domesticated animals
Land remediation
Landscapes forest management and fibre sourcing
Natural ecosystems
Water ecosystems
5.1.1 UN Sustainable Development Goals
Based on the nature of Group’s activities, the Group aims to contribute to the seven UN Sustainable Development Goals. Since 2019, Group has integrated these UN Sustainable
Development Goals:
Consolidated Management Report 2025
48
5.1.2 Sustainability Commitments and Data Disclosure on International Platforms
As a publicly listed company on the Nasdaq Baltic exchange, the Company has been
annually submitting a sustainability questionnaire on the Nasdaq ESG platform since
2020. Alongside its set objectives, it highlights environmental, social, and governance
(ESG) indicators, data, and deviations compared to previous years.
5.1.3 Memberships and Partnerships
Active involvement in associations, the exchange of best practices, and addressing
emerging sustainability challenges remain pivotal for AUGA group. The Group has
maintained its membership in key organizations, including the Lithuanian Association of
Agricultural Companies (LŽŪBA), the Lithuanian Organic Farmers Association (LEŪA).
Baltic Champs, a subsidiary of the Group, aligns itself with the Lithuanian Association of
Mushroom Growers and Processors (LGAPA), while AUGA Luganta is affiliated with the
Lithuanian Vegetable Growers Association.
In its dedication to fostering the education of young professionals on various sustainability
issues and enhancing its image as an attractive employer, the Group has consistently
partnered with various educational institutions. AUGA group collaborates with esteemed
Lithuanian universities: VU Šiauliai academy, VDU Academy of Agriculture, Kaunas
University of Technology (KTU), LSMU Faculty of Veterinary Medicine, Vilnius Business
College, and ISM University of Management and Economics.
Consolidated Management Report 2025
49
5.1.4. Disclosures in relation to specific circumstances
ESRS 2 BP-2 Disclosures in relation to specific circumstances
In accordance with ETAS guidelines, the Group discloses circumstances that had a
significant impact on the results of the reporting period or the fulfilment of obligations
and their reflection in the report. A general circumstance that may become significant
and lead to changes in business strategy is the restructuring process initiated by
AUGA group, RAB and some of its controlled companies in November and December
2024.
About the restructuring processes
At the end of 2024, the Group announced that it was experiencing financial difficulties,
prompting restructuring processes for some of the companies controlled by AUGA
group. The aim of the restructuring is to protect the interests of employees, creditors,
shareholders, and other stakeholders, ensure business continuity, and restore long-term
solvency.
In the context of restructuring, AUGA group and its controlled companies are focusing
on activities generating positive financial flows - crop production, animal husbandry,
biomethane production, mushroom cultivation and supply of products to end
consumers. Optimization of traditional agricultural activities, efficiency-improving
solutions are aimed at restoring the Group's long-term solvency and repaying its
obligations to creditors. It is important to note that although the strategy of AUGA
group, its guidelines and value foundation remain relevant, due to the current
economic situation of the Group and the lack of demand for sustainable technologies
in the sector, the Group has decided to indefinitely postpone the development plans for
emission-reducing technologies. If market demand changes or other circumstances
arise that could create economic value for the Group, AUGA group could continue the
sustainable technology commercialization projects implemented so far. Innovative
technologies developed by AUGA Tech - 3 hybrid AUGA M1 and 1 electric AUGA E1
tractors – is being used in the Group's activities. This will ensure the gradual
generation of economic returns by using already developed technologies in production
processes.
In summary, despite the challenges related to restructuring processes and operational
restrictions arising from the change in the legal status of the companies, the Group
continues to carry out daily operations in all its business segments and to organize
production operations throughout the whole activity chain.
4
EFRAG-GRI joint statement of interoperability
The sustainability practices applied in the Group's production activities so far will
continue to be consistently implemented in the Group's companies and in daily farm
activities. To ensure the activities of different segments, as before, a circular economy
model is continuing to be used, that creates positive economic value (e.g. biomethane
production from livestock waste, or the employment of digestate in crop production).
Reasons for uncertainty in estimates and results
The Group defines qualitative, quantitative circumstances and other assumptions that
have influenced the planned sustainable performance results, set objectives or led to
specific changes in specific ESG information topics that respond to that topic. List of
circumstances disclosed in the report are the following:
▪ The Group’s strategy implementation results – section 1.4.1 Strategy
Implementation.
▪ The Group’s emissions and their correlation with the strategy implementation
– section
6.2 Climate Change.
Disclosures stemming from other legislation or other sustainability reporting standards
In preparing the 2025
Sustainability Report, AUGA group adheres to the ESRS
(European Sustainability Reporting Standards) disclosure requirements. During the
report preparation process, the Company made a strategic decision to streamline its
reporting from 2024 by focusing on the ESRS standards and discontinuing the
previously
used GRI and Nasdaq indicators in the report, due to their significant
overlap with the ESRS requirements. This high level of alignment between ESRS and
GRI announcement was confirmed in a joint statement released by EFRAG and GRI in
2023.
4
Incorporation by reference
Considering that the Group prepares a consolidated management report and certain
sustainability-related information is disclosed not only in the sustainability section of
this report, but additional cross-references have also been included between the
different sections of this report
Consolidated Management Report 2025
50
5.2 Sustainability Management
Composition and diversity of administrative, management, and supervisory bodies
ESRS 2 GOV-1 The role of administrative, management, and supervisory bodies
AUGA group aims to manage sustainability within the Group by applying fundamental
global sustainability practices and following recommendations outlined in international
sustainability standards. Until 2025 the Group has established sustainability goals and
a sustainability strategy, which applies across all AUGA group companies and
operations. To ensure the implementation of sustainability practices, AUGA group
management team is engaged with each member responsible for their respective
areas. Naturally, the greatest focus is placed on production activities, as their
emissions constitute a significant share of the Group’s overall emissions. All
information about the Group’s governance in 2025, including the composition of
administrative, management, and supervisory bodies, as well as their roles, is
disclosed in:
• Composition, diversity, role, and experience of the Board – section 3.3. Board
and Committees;
• Board committee responsible for overseeing impacts, risks, and opportunities
– section 3.1 Governance Model;
• Composition and diversity of administrative, management, and supervisory
bodies – section about Employees and Diversity.
The role and responsibility of administrative, management, and supervisory bodies in
relation to sustainability matters.
ESRS 2 GOV-1 The role of administrative, management, and supervisory bodies
The sustainability goals and progress of AUGA group are regularly discussed within
the management team, with the involvement of the Board based on the strategic
importance of the topic. The Group has a dedicated Sustainability Project Manager
responsible for developing sustainability initiatives and reporting directly to the CEO.
Additionally, the Chair of the Board, Kęstutis Juščius, oversees sustainability matters.
The designated Sustainability Project Manager provides the Board with a
comprehensive annual sustainability review, which not only presents the Sustainability
Report for the previous year, but also covers global sustainability trends, EU and local
regulatory developments, consumer research, and best practices from other
companies. At least twice a year, joint meetings are held between the Group’s
Sustainability Project Manager, the Board member responsible for sustainability, and
relevant functional managers to discuss the implementation of the Group’s
sustainability strategy. Working sessions are also organised as needed to review key
developments and challenges in sustainability topics, to discuss impacts, risks and
opportunities, and to review its relevance. The Group reports annually by publishing
the Sustainability Report alongside its financial statements, which is approved by the
Board.
The members of the Group's highest governing body (the Board) and the management
team of 2025 have not received specific training in sustainable development.
Management processes for monitoring impacts, risks, and opportunities
ESRS 2 GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
The information in the Sustainability Report is structured according to environmental,
social and governance (ESG) topics, in accordance with the European Sustainability
Reporting Standards (ESRS). Only those topics are disclosed that, according to the
dual materiality assessment carried out by the AUGA group companies, were
recognized as material – i.e. having a material impact on the Company or a significant
impact of the Company on the environment and society. Each material topic is
disclosed in detail in the context of the relevant ESG area. In 2021, the Group
conducted an assessment of the materiality of the sustainability criteria with
stakeholders and with the AUGA group management team and Board members, and
in 2023, a new assessment was carried out involving the AUGA group management
team and Board members. The management team and Board members assessed the
sustainability criteria according to the materiality aspects of the impact of the Group's
activities on the environment and stakeholders and the financial impact on the Group,
and then a joint review of the resulting matrix was performed. In 2025, the Group, in
accordance with the European Sustainability Reporting Standards (ESRS), reviewed
the relevance of important topics at staff, management and board levels. In addition,
the Group conducted an assessment of material topics based on an Impact, Risk and
Opportunity (IRO) analysis, involving top-level management and Board members in
the process. The detailed process for these reviews and approvals is described in the
related topics.
Integration of sustainability-related performance in incentive schemes
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes
The Group does not foresee financial incentives to employees or members of the
management and supervisory bodies for the formulation, development, and
implementation of the long-term sustainability strategy. Additionally, their performance
is not evaluated based on greenhouse gas (GHG) emission reduction targets.
Employees responsible for this area are financially incentivized under the general
renumeration freamework, similar to other Group employees.
All information about employee incentives and the renumeration of administrative,
management, and supervisory bodies is disclosed in:
• Employee incentive systems – section 4. Remuneration Report;
• Composition of administrative, management, and supervisory bodies,
employee renumeration report – section 4. Renumeration Report.
Consolidated Management Report 2025
51
Due diligence process
ESRS 2 GOV-4 Statement on due diligence
The purpose of due diligence process is to ensure that the Group does not cause or
contribute to negative impacts on people, the environment and society, and to take
action to avoid or mitigate negative impacts that may arise from the Group’s activities,
products, services or business relationships. The results of this process depend on the
Group’s assessment of significant impacts, risks and opportunities (IRO) and are
closely linked to the policies and governance principles applied in the Group. This
assessment and the links with the objectives specified in the policies and commitments
to mitigate negative impacts are described in more detail in other sections and in
individual topics of the ESG. The table below shows how the Group applies the main
elements of due diligence and in which parts of the sustainability report they are
disclosed.
Sustainability reporting risk management and internal control
ESRS 2 GOV-5 Risk management and internal controls over sustainability reporting
The annual financial and non-financial reporting cycles are aligned with national and
international legal acts. The Group’s consolidated financial statements, as well as the
Sustainability Report, are audited, thus ensuring internal and external control
processes related to financial and sustainability disclosure requirements.
Since 2021, the Company’s Audit Committee and the Board have approved the Risk
Management Guidelines, and each year the Group assesses key risks and creates a
risk assessment map, taking into account both the probability of risks and the
magnitude of their impact. Since the Group’s Sustainability Strategy is integrated into
the Group’s strategy, the resilience of the business model and strategy to the risks
related to sustainability issues is monitored and assessed in this way. The Company’s
Articles of Association provide the Board with essential functions and responsibilities,
one of which is to consider and approve the level of acceptable risk in the Group’s
activities and the risk management policy. Also, one of the functions of the Audit
Committee, which is one of the committees of the Board, is to analyze the
effectiveness of the internal audit and risk management systems, which ensures the
analysis and management of risk management and internal control.
In addition, the Group's impact on sustainability was assessed according to the
materiality assessment carried out in 2021 and 2023. In 2025, the management
examined the material topics in more detail in order to meet the requirements of
Impacts, Risks, Opportunities (hereinafter - IRO). 26 risks related to sustainability
topics were integrated into the list of 77 total assessed risks and are assessed
together with all risks. In this way, sustainability risks are integrated into the
assessment, monitoring and management of all risks.
Elements of the due diligence process
This question is resolved according to
Embedding due diligence in governance,
strategy and business model
2 ETAS: GOV-2; SBM-3
Engaging with affected stakeholders in all
key steps of the due diligence
2 ETAS: GOV-2; SBM-2; IRO-1;
ETAS MDR-P
Identifying and assessing adverse impacts
2 ETAS: IRO-1; SBM-3
Taking actions to address those adverse
impacts
Thematic ETAS: These reveal various
actions that address the impact issue
Tracking the effectiveness of these efforts
and communicating
Thematic ETAS: on the assessment
of indicators and results and
comparison with previous years
Consolidated Management Report 2025
52
5.3 Sustainability Strategy
ESRS 2 SBM-1 Strategy, business model and value chain
Agriculture is responsible for over 20% of global greenhouse gas emissions.
5
The
Group, being a long-standing participant in this sector and having started tracking its
operational emissions in 2018, fully understands the significant impact of its activities
on the environment. Therefore, in 2020, the Group announced its five-year business
strategy, where sustainability became a core element, fully integrated into the business
model, as recommended by international sustainability and climate change institutions.
For more details on the business strategy, see section 1.4 Strategy or visit the Group’s
website here. 2025 m. The Group shall provide an overview of how it has fared in
meeting the objectives and targets of the Strategy and shall present this overview in
the section "Implementation of the Strategy".
The Group has set ambitious emission reduction targets for the strategy
implementation timeline and has developed new technological solutions to achieve
them, such as biomethane- and/or electric-powered tractors, emission-reducing feed
technology, and biomethane production. The Group’s ultimate goal is to create a food
production system that ensures food is produced with no cost to nature.
More detailed
information on which indicators the Group monitored in order to achieve its goals and
targets is provided in the Greenhouse gases section.
The targets set out in the Strategy were closely linked to the goal of achieving CO₂
equivalent neutrality by 2030, and their implementation depended on the pace of
technological progress and the risks involved. Nevertheless, this strategic direction has
consistently enabled the Group to strengthen its competences over the years and to
move steadily towards a more sustainable food value chain.
The Sustainable Technology Development Strategy was consistently implemented
until Q4 of 2024. By starting biomethane production in 2024, the Group took an
important step in implementing the circular economy strategy – this activity became its
practical application in daily operations, ensuring the circularity of the AUGA group’s
business cycle.
For more information on the progress in technology, see section 1.4.2.
Strategy Implementation and Greenhouse gases.
In addition to technological projects, the Group applies existing market practices to
reduce its environmental impact. For example, it uses min-till farming technology and a
regenerative crop rotation method, which help preserve soil and its biodiversity. The
Group also ensures more sustainable livestock farming by using perennial leguminous
grasses in animal feed, which generate lower greenhouse gas emissions.
Furthermore, the Group has been using green electricity in its operations for several
years.
5
International Panel on Climate Change, Climate Change 2023, report
More detailed information about the Group's strategy, business model, and value chain
is disclosed in other sections of the management report:
▪ Sustainability reporting objectives and tasks, key elements of the Company’s
strategy – in section 1.4.1 Strategy Implementation
▪ Business model and value chain, product groups, and markets – in section
1.5 Business Model.
In addition to the technological projects and other sustainable solutions developed by
the Group to reduce environmental impact and contribute to the implementation of
environmental initiatives and goals, the Group also focuses on social responsibility and
good governance practices. Significant social issues to which the Group allocates
human resources include ensuring employee safety and health, working conditions
and remuneration, additional employee incentives (through the share option
programme), diversity, and equal opportunities. It is important to note that, at present,
the Group does not set specific targets in the social area.
The Group also applies good governance practices through the Board model, adheres
to approved policies within the Group (business ethics, animal welfare, supplier code
of ethics, bribery and corruption prevention), and is committed to ensuring that its
operations are conducted internationally in accordance with the highest standards of
transparency and anti-corruption. This includes a strict prohibition of any bribery of
foreign officials, with the aim of ensuring transparency towards investors and other
stakeholders. Policies are reviewed as needed and updated. More information about
the policies in place within the Group can be found in section 5.7 Policies
Through its sustainable strategy, AUGA group pursues the following results for these
main target groups:
CONSUMERS
FARMERS
PRIVATE AND
INSTITUTIONAL
INVESTORS
SHAREHOLDER
S
a more
sustainable way
to eat
a more
sustainable way
to work
a more sustainable
way to invest
a more
sustainable way
to receive
financial returns
Consolidated Management Report 2025
53
5.4 Stakeholders
ESRS 2 SBM-2 Interests and views of stakeholders
Stakeholder engagement
The Group's sustainable operating practices are inseparable from stakeholders and
their involvement and joint dialogue on relevant topics. Close and high-quality relations
with stakeholders are an important task for the Group. The management team has
identified relevant stakeholder groups, taking into account the nature, scale and
general needs of the Group's activities. The Group's stakeholders: employees,
consumers, investors, non-governmental and governmental organizations, suppliers,
customers, regional communities, media. The Group cooperates with these groups in
various forms, which are listed in the table below. It is also important to mention that
the Groups involve stakeholders in the materiality assessment and have been doing so
since 2017. The last time such an assessment was carried out with stakeholders was
in 2021, and in 2023 a double materiality assessment was carried out, which took into
account the opinions expressed by anonymous stakeholders in a survey in 2021.
Results of cooperation
A close cooperation with stakeholders ensures the continuity of the Group’s activities,
enhances its reputation, supports the achievement of business objectives, and aligns
with stakeholders’ interests. The materiality assessment and identification of key
impact topics directly influence the Group’s decisions and correlate with the Group’s
strategic direction. For example, topics important to stakeholders include emission
reduction, responsible use of natural resources, food safety, employee health and
safety, corruption and bribery prevention in business, and others. These topics are
also essential to the Group’s daily operations, with some becoming central to its
business strategy—particularly those related to climate change.
In this past meaningful sustainability area, the Group has achieved the most significant
results, including the development of emission-reducing agricultural technologies, the
implementation of sustainable farming practices, and the introduction of more
sustainable organic products to the market. The Group makes considerable efforts and
takes into the account stakeholder needs to ensure the responsible use of natural
resources. As a result, AUGA group has been developing a circular economy model
for several years. This effort has culminated in the successful establishment of
biomethane infrastructure and the launch of economic activity in this sector.
Biomethane production is important to the Group’s circular cycle, as it enables the
reuse of secondary raw materials from one of the Group’s segments—livestock—by
converting manure into green gas. Additionally, the by-product of this process,
digestate, is being used from 2024 onwards in the Group’s organic farms as a natural
fertiliser for crops.
In summary, it is important to note that as one of the largest players in its sector in the
country, AUGA group understands the impact of its activities on the environment,
communities, and future generations. That is why the Group measures its activities
and decisions through the denominator of sustainable operations, aiming to leave as
little negative impact on the environment as possible.
Consolidated Management Report 2025
54
The Group’s identified stakeholders, key topics, and forms of dialogue with them are presented in the table below.
Stakeholders
Topics
Forms of dialogue
Expected results
Employees
▪ Performance results, technology development progress,
sustainability, and business strategy
▪ Employee welfare, compensation, and options
▪ Market news, general education in the field in which the
Group operates
▪ Intranet and notice boards
▪ Electronic means
▪ Internal events
▪ Specialised newsletters
▪ Surveys
▪ Employee engagement in the Group’s daily operations (important due to the
diversity of business segments);
▪ Sharing perspectives and opinions relevant to shaping the list of material
topics and assessing impact both within and beyond the Group.
Consumers
▪ Products, their composition, production processes
▪ Group’s activities, technological progress, sustainability
strategy
▪ Education on sustainability topics
▪ Places of sale
▪ Social networks
▪ Events and exhibitions
▪ Advertisement and media
publications.
▪ Meeting the needs of consumers choosing sustainable products and
fostering the growth of their community;
▪ A category of more sustainably produced organic products shaping new
market trends;
▪ Enhancing the Group’s reputation through the perspective of a responsible
and sustainability-driven organization.
Investors
▪ Performance results, technology development progress,
sustainability, and business strategy
▪ Market trends and news
▪ Live meetings
▪ Specialised newsletters
▪ Remote conferences
▪ Events
▪ Annual and quarterly reports
▪ Nasdaq platform
▪ Providing comprehensive, transparent, and investor-oriented information;
▪ Building trust in the data presented by the organization.
Non-governmental
and governmental
organizations
▪ Market trends and new
▪ Regulatory issues
▪ Sharing of experience
▪ Meetings
▪ Events
▪ Sharing relevant updates and pursuing a common goal in sustainability
topics through cooperation with other organizations.
Suppliers
▪ Product and service supply questions
▪ Group’s results, operational and technological progress,
sustainability, and business strategy
▪ Meetings
▪ Electronic means
▪ Transparent and sustainable relationships ensuring smooth supply and
settlement;
▪ Informing about compliance with the sustainability principles important to the
Group.
Clients
▪ Products, their composition, production processes
▪ Group’s activities, technological progress, sustainability
strategy
▪ Meetings
▪ Electronic means
▪ Visits to the Group
▪ Events and exhibitions
▪ Ensuring customer needs for high-quality, environmentally friendly, and more
sustainably grown or produced food.
Regional
communities
▪ Local needs of communities, needed support
▪ Education about the Group’s activities and applied
technologies
▪ Meetings
▪ Electronic means
▪ Visits to the Group or
community events
▪ Maintaining and creating jobs to reduce unemployment;
▪ Growth of the regional economy to support the prosperity of remote areas.
Media
▪ Group’s results, operational and technological progress,
sustainability, and business strategy
▪ Products, their composition, production processes
▪ Market news, general education in the field in which the
Group operates
▪ Interviews
▪ Meetings, according to the
need
▪ Electronic means
▪ Visits to the Group
▪ Press releases
▪ Relationships based on mutual cooperation with a group that shapes public
opinion;
▪ Reputation as an expert and reliable spokesperson for media outlets.
Consolidated Management Report 2025
55
5.5 Double Materiality Assessment of Sustainability
Criteria
ESRS 2 IRO-1 Description of the process to identify and assess material impacts, risks
and opportunities
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
Evaluation of Material topics and integration into strategy
Since 2017, the Group has been conducting a biennial sustainability assessment with
stakeholders and the Group’s management team and Board members through an
anonymous survey. This long-term process allows the Group to take into account the
interests of stakeholders and the impact of the Group’s activities on sustainability
issues. Involving the management team and the Board in the materiality assessment
helps to identify and prioritize the most important sustainability aspects, which
encourages the Group to update and adapt policies and the tasks set out in them into
their operating procedures, taking into account the changing economic environment.
These practices also allow for decisions that contribute to the establishment and
implementation of long-term sustainability goals through the Group’s business model
and strategy. A significant result of this process is the integration of sustainability goals
into the Company’s strategy.
Double Materiality Assessment
The last materiality assessment of sustainability criteria, guided by the GRI materiality
assessment process and involving all stakeholders, the Group’s management team
and the Board members, was carried out in 2021. It included an assessment of the
organization's economic, environmental and social actual and potential impacts and
allowed identifying which topics are material. The 2021 assessment and refined
performance criteria became the basis for the Dual Materiality Assessment carried out
in 2023. Taking into account the new requirements of the ETAS standard, the Group
carried out an assessment of the materiality and financial materiality of the dual impact
of sustainability in 2023. During the materiality assessment, environmental, social and
governance criteria were combined into 20 ETAS relevant topics (as specified in ETAS
Part 1, AR16)
6
. The new assessment was carried out involving the Group’s
management team and the Board members, collecting the opinions of the participants
through a survey. The materiality assessment scores, methodology and criteria were
determined in accordance with ETAS 1 requirements, applying the principle of double
6
ESRS 1, AR16
assessment, where the management team and Board members assessed each
sustainability criterion according to two materiality aspects:
▪ impact significance: what impact the Group's activities have on the
environment and stakeholders, taking into account its relative strength
(evaluating scale, scope, remendability) and likelihood;
▪ financial significance: what impact do sustainability issues have on the
Group's performance, results and financial position, assessing strength
(estimating the scale) and probability.
The priority areas identified as a result of this assessment overlapped and
complemented the 2021 key themes and became the Group's sustainability material
themes. It is important to note that in 2025. The Group conducted a review of all
material themes at staff, Executive and Board level to assess their relevance for 2025
and the need to adjust or update existing outputs. Through internal sessions, meetings
and discussions, it was agreed that these themes remain relevant in 2025 and in the
context of the upcoming implementation phase of the Group's current strategy. Below
is a matrix that reveals the materiality of the topics according to the number and value
of all assessed points. In accordance with ETAS requirements, the table identifies and
highlights all the most significant topics that are 1) “material in terms of impact”, 2)
“material from a financial perspective” or 3) both.
Result of the dual materiality assessment
The dual materiality assessment shows that climate change and emissions are a key
criterion that the Group can directly influence in carrying out its activities, and this
criterion also has a significant financial impact on the entire organization. Therefore,
reducing emissions and applying innovative technologies had been one of the Group's
top priorities for several years. Also, for the Group’s management team and Board
members, renewable energy (in terms of impact and financial aspects), biodiversity
and ecosystems (in terms of impact), circular economy (in terms of impact and
financial aspects) remain important priorities in the environmental field.
According to the carried out assessment, it can be seen that the most important social
criteria in terms of impact on the environment and public are consumer safety and
health, consumer education in the field of sustainability. Food safety has always been
and remains a daily priority in both own and contract production. Also, in the opinion of
the managers and members of the Board of the Group, employee safety and health,
as well as working conditions and remuneration are important criteria in the impact
area. In response to this priority, the Group organizes Employee Safety and Health
training. In the area of financial impact, the assessment participants identified the
Consolidated Management Report 2025
56
following criteria: working conditions and remuneration, consumer and employee
safety and health.
Among the management criteria, in the opinion of the assessment participants, the
most important for environmental and public impact are business ethics, innovation
and technology leadership, animal welfare and relations with suppliers. In the area of
financial impact, the following management criteria are identified: innovation and
technology leadership, relations with suppliers and compliance and transparency.
All material topics are also disclosed in more detail in the next section and in individual
ESG topics, assessing how they relate to impacts, risks and opportunities (IRO), their
expected time horizon, place in the value chain and the link to the business model.
The Group aims to disclose the dual materiality and IRO related to sustainability
annually but may use assessments from previous periods if they are still relevant and
there have been no significant changes in the organizational and operational structure
or external factors that would change or create new aspects of the IRO or material
topics.
Consolidated Management Report 2025
57
Double Materiality Matrix of Sustainability Criteria
Double materiality
Environmental criteria
Impact
materiality
Financial
materiality
E1. Climate change and emissions
High
High
E2. Renewable energy
High
High
E3. Earth, air and water pollution
Medium
Low
E4. Water resources
Medium
Low
E5. Biological diversity and ecosystems
High
Medium
E6. Circular economy (reduce, reuse,
recycle)
High
Medium
Social criteria
S1. Work conditions and renumeration
High
High
S2. Employees health and safety
High
Medium
S3. Employees diversity and equal rights
High
Low
S4. Ensuring employees human rights
High
Medium
S5. Relations with communities
High
Medium
S6. Consumer health and safety
High
Medium
S7. Consumer education in the field of
sustainability
High
Medium
Governance criteria
G1. Company's values and culture
Medium
Medium
G2. Business ethics
Medium
Medium
G3. Animal welfare
High
Medium
G4. Relations with suppliers
Medium
High
G5. Corruption and bribery prevention
Low
Low
G6. Innovation and technology leadership
High
High
G1. Company's values and culture
Medium
High
Financial Significance
Impact Significance
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58
5.6. Significant Impacts, Risks and Opportunities (IRO)
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy
and business model
Significant impacts, risks and opportunities evaluation process
Based on all identified material sustainability topics, the Group conducted an Impacts,
Risks, Opportunities (IRO) assessment during the reporting period, identifying them for
each material topic. Since the Sustainable Business Report prepared by the Group is
part of the Consolidated Annual Report, the IRO assessment was conducted covering
all Group companies for the assessment year 2025 (the reporting period). This ensures
that all affiliated companies are included, allowing for an unbiased identification of
material impacts, risks and opportunities.
During the internal qualitative assessment, a list of 26 significant sustainability risks was
prepared (from 2024 the historical list of the Group's risks was expanded) and an issued
and updated list of 24 significant impacts (positive and negative) and opportunities list.
Impact and opportunity assessment
During the assessment, opportunities were integrated into the assessment along with
impacts. In 2024 the identified list of impacts and opportunities was reviewed, updated
and corrected by the employees, managers and the Board during sessions applicating
a qualitative assessment method. Each impact or opportunity was assessed according
to the following criteria: whether the impact is actual (already occurring) or potential;
whether the financial significance of the opportunity is current (affecting financial results
and cash flows in 2025) or expected in the future; the expected time frame of each IRO
aspect is assessed (short-term – occurring only in 2025, medium – up to 5 years, long-
term – longer than 5 years); it is determined at which point in the value chain (initial,
Group operations, final) the impact is made or the opportunity is created. Also, each
aspect of the IRO was assessed according to how it relates to the Group's strategy and
business model, determining whether it arises from the business model (directly related
to the Group's operations and its business model), impacts the business model (affects
the Group's business model, including its operation and results), or is integrated into the
strategy and business model (included in the Group's strategy and business model,
ensuring that it is managed and monitored as an integral part of the business).
The table below provides a list of all material sustainability topics, their relevance to
ETAS topics, indicating the impacts, opportunities, and risks identified in them. The
detailed result of the IRO assessment of each material topic and its management is
disclosed in each material sustainability topic. Also, all identified positive or negative
impacts and risks are presented in the IRO Value Chain table. The consolidation of the
IRO Value Chain allows you to assess where in the value chain the most environmental
and societal areas are concentrated due to the Group's activities.
Risk assessment
The prepared list of 26 risks covered all significant sustainability topics, and also
identified physical and transformation risks related to biodiversity conservation and
climate change mitigation and adaptation. Each identified risk is described in more detail
under the significant sustainability topics. The overall list of sustainability risks was
integrated into the overall annual quantitative risk assessment of the Group, as the
guidelines and objectives of sustainable activities are integrated into the business
strategy of the Group. In this way, each risk, including sustainability risk, was assessed
according to the levers of its probability and financial impact, determining the Group's
priority risks. These priority risks of 2025 are described in section 1.6 Risk management.
IRO assessment results
The IRO assessment allowed for a more detailed disclosure of each significant topic, an
understanding of the impacts and opportunities inherent in them, and the identification
and assessment of potential risks for the Group. This process also helped to better identify
in which part of the value chain - upstream, downstream or within the activities themselves
- significant impacts, risks and opportunities are concentrated. In addition, it was found
that due to the Group's existing business model, most aspects of IRO are concentrated in
the Group's activities, and the implemented processes, such as the circular economy and
environmental management processes, create a positive impact. When assessing
existing and expected impacts, the results show that almost all existing impacts directly
affect the environment or people. This justifies the significance of the Group's policies
designed to monitor and manage meaning of various areas. The Group’s policies are
presented in
section _5.7_Policies).
When assessing the expected period, it was noted that the majority of impacts are of a
long-term or medium-term type. This indicates that more time is needed to implement
changes, integrate new processes or mitigate and eliminate them, taking into account
the specificity and cyclicality of agricultural activities. It is important to note that most of
the assessed impacts, opportunities and risks have already been integrated into the
Group's business model and strategy. They have become an integral part of the
activities through the set objectives, applied measures, policies and risk management.
Such integration strengthens the implementation of sustainability objectives and
increases the value they create for the business.
Identification of significant risks and their relationship to the business model
During the risk assessment, among the identified priority risks, risks related to significant
sustainability topics were also identified: loss of suppliers or partners (G1)and changes in
the prices of organic and conventional products (E1). These risks are described in more
detail in section 1.6 Risk management. All risks, including those related to sustainability,
after identification as priority are constantly monitored and managed in accordance with
approved internal regulations.
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59
IRO focus on business model and value chain
The Group, understanding the environmental impact of the agricultural sector and its
products, especially since it grows some crops with a higher environmental impact (e.g.
in crop production - corn, potatoes, rapeseed, soybeans, cereals), and also engages in
livestock farming, lists all potential and actual environmental impacts created by the
Group in the value chain table below, which were identified during the IRO assessment.
More detailed possible solutions or actions for each impact are described in each
material topic.
In addition, all priority risks, including risks related to material
sustainability topics, are assigned to the value chain stage, thus indicating the links
between risks, impacts and dependencies on environmental factors and are reflected
more in detail in the section 5.6. Significant Impacts, Risks and Opportunities (IRO).
After conducting an additional assessment to determine where significant impacts, risks
and opportunities are concentrated in the Group's activities or in the upstream and
downstream links of the value chain, the Group has determined that the main impacts,
risks and opportunities are currently concentrated in the Group's activities. In order to
prioritize those areas where it has the greatest opportunity to operate and where the
impact on nature is greatest (i.e. in its activities, especially in the primary production and
processing of key raw materials), since 2020, the Group has integrated sustainability
priorities into its strategy and is consistently striving to make a positive difference in its
operations, by monitoring potential negative impacts and implementing actions to
address and prevent them.
Material ESRS
topics
Material topic for the
Group
Positive
impact
Negative
impact
Opportunities
Risks
E1
Climate
change
Climate change and
emissions reduction
•
•
•
Renewable energy
•
Innovation and
technology leadership
•
•
E4
Biodiversity
and
ecosystems
Biodiversity and
ecosystems
•
•
E5
Resource
Use and
Circular
Economy
Circular economy
(reduce, reuse, recycle)
•
•
S1
Own
Workforce
Working conditions and
remuneration
•
Worker safety and health
•
Ensuring workers' human
rights
•
S3
Affected
communities
Community relations
•
•
S4
Consumers
and End
Users
Consumer safety and
health
•
Consumer education in
the field of sustainability
•
G1
Business
ethics
Animal welfare
•
Supplier relations
•
•
•
Compliance and
transparency
•
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60
Policies related to significant sustainability issues
ESRS 2 MDR-P Policies adopted to manage material sustainability matters
The Group applies policies to different areas and topics in order to prevent, mitigate
and correct actual and potential negative impacts, manage risks and seize
opportunities. Due to the interdependence of impacts on people and the environment,
risks and opportunities, one policy may apply to several material sustainability issues,
including issues that are addressed in more than one material topic. A more detailed
overview of all existing policies, including their overall objectives and which material
sustainability topics of the Group they relate to, is provided in
section 5.7 Policies.
Each topic provides information on how aspects related to impacts, risks or
opportunities are monitored and managed through specific policies and the objectives
they set.
Tasks, actions and resources related to significant sustainability issues
ESRS 2 MDR-A Actions and resources related to significant sustainability issues
ESRS 2 MDR-T Monitoring the effectiveness of policies and actions against objectives
When disclosing targets related to the prevention or mitigation of environmental
impacts, the Group gives priority to targets related to absolute impact reduction, i.e.
through GHG emissions, which are described in section 1.4 Strategy. These objectives
are consistently monitored and evaluated through specific indicators, an overview of
which is provided in section 1.4.1. Strategy implementation. For the other significant
themes, the Group has not set specific quantitative targets, as the main objectives and
targets arise from and are linked to the qualitative objectives of the policies, which are
presented under the description of the policies in section 5.7 Policies and the
significant sustainability themes. In order to clearly show the link between the
objectives set out in the policies and their implementation during the reporting period,
each significant topic presents the actions taken or monitoring results achieved to
prevent, mitigate, remedy and take advantage of actual and potential impacts. Any
indicators monitored by the Group related to the topic shall also be identified. In the
preparation of the future strategy, the Group will consider including quantitative targets
in addition to the qualitative targets set in the policies. The Group has not yet set
quantitative climate targets for 2030 and 2050, as the previous strategy expired in
2025 and a new strategy is currently being developed, in which the key environmental
and climate targets for the 2030 and 2050 period will be defined.
Consolidated Management Report 2025
61
7
ENCORE, 2024
8
Based on internal IRO evalutions, 2024
Risks
Loss of suppliers or partners,
Risk of rising raw material prices
and changes in demand,
Liquidity risk.
Partial implementation of restructuring in Group companies,
Higher-than-expected growth in production costs,
Risk of changes to EU subsidies,
A sharp increase in land lease prices.
Partial implementation of the
restructuring plan at Group
companies,
Risk of failure to implement the
restructuring plan,
Higher-than-expected growth in
production costs.
Loss of suppliers or partners,
Higher than forecasted growth in
production costs.
Liquidity risk,
Partial implementation of restructuring in
Group companies,
Risk of failure to implement the restructuring
plan,
Credit/financing risk,
Capital risk arising from poor performance,
Risk of changes to EU subsidies,
A sharp increase in land lease prices.
Loss of suppliers or partners,
Risk of rising raw material prices
and changes in demand
Dependencies on
the environment
and ecosystems
7
Raw environmental materials
Biomass provisioning ecosystem
services
Global climate regulation.
Ground water and quality
Food crop dependency on pollinators
Nursery habitats
Biomass provisioning ecosystem services
Quality, fertility and characteristics of soils
Sustaining populations of species
Global climate regulation.
Water supply and purification
services
Solid waste remediation
Green energy resources
Biomass ecosystem services.
Water supply and purification
services
Green energy resources
Biomass provisioning services.
Education, scientific and research services
Solid waste remediation services
Green energy resources.
Global climate regulation
Education, scientific and research
services.
Potential and actual
Impacts on
environment and
society
8
Positive:
Using biomethane to mitigate
climate change
Circular economy and resource
conservation
Ensuring human rights
Data protection
Greener and healthier products for
consumers
Education about sustainability and
environmental friendliness
Sustainable farming and animal
welfare
Sustainable partnerships with
suppliers
Prevention of corruption and bribery
Transparency
Supporting employee motivation
during the restructuring period
Negative:
GHG emissions from direct and
indirect activities
Weakening supplier trust
Positive:
Biomethane use for climate change mitigation
Biomethane integration into the circular economy
Development and application of sustainable agricultural
technologies and practices
Use of renewable energy
Protection of biodiversity and ecosystems
Circular economy and resource conservation
Creating job opportunities in regions and for unskilled labor
Ensuring human rights
Data protection
Positive impact of organic farms on community health and the
environment
Organic livestock farming and animal welfare
Prevention of corruption and bribery
Transparency
Supporting employee motivation during the restructuring
period
Negative:
Greenhouse gas emissions from direct and indirect activities
Impact on ecosystem and biodiversity loss due to conventional
farming
Waste generation in operations
Work with chemicals and machinery
Negative impact of intensive agriculture on the environment
Weakening supplier trust
Positive:
Ecological and healthier products
for consumers
Prevention of corruption and
bribery
Transparency
Use of renewable energy
Circular economy and resource
conservation
Creating job opportunities in
regions and for unskilled labor
Shareholders of the company
Ensuring human rights
Data protection
Ecological livestock farming and
animal welfare
Supporting employee motivation
during the restructuring period
Negative:
GHG emissions from direct and
indirect activities
Generation of waste in
operations
Work with chemicals and
equipment
Weakening supplier trust
Positive:
Greener and healthier products
for consumers
Sustainable partnerships with
suppliers
Anti-corruption and bribery
Transparency
Ensuring human rights
Data protection
Supporting employee motivation
during the restructuring period
Negative:
GHG emissions from direct and
indirect activities
Weakening supplier trust
Positive:
Education on sustainability and
environmental friendliness
Prevention of corruption and bribery
Transparency
Use of renewable energy
Circular economy and resource conservation
Creating job opportunities in regions and for
unskilled labor
Ensuring human rights
Data protection
Negative:
GHG emissions from direct and indirect
activities
Generation of waste in business operations
Weakening supplier trust
Positive:
Organic and healthier products for
consumers
Education about sustainability and
environmental friendliness
Prevention of corruption and bribery
Transparency
Ensuring human rights
Data protection
Organic livestock farming and
animal welfare
Sustainable partnership with
suppliers.
Supporting employee motivation
during the restructuring period
Negative:
GHG emissions from direct and
indirect activities.
Weakening supplier trust
Material ESRS topic
E1, E5, S1, S4, G1
E1, E4, E5, S1, S3, S4, G1
E1, E4, E5, S1, S3, S4, G1
E1, E5, S1, S4, G1
E1, S1, G1
E1, S1, S4, G1
Value chain
Input sourcing
Primary production
Processing
Manufacturing
Management, operations and R&D
Distribution and consumption
Description of
activity in the value
chain
This stage involves procuring
essential materials needed for
production, such as seeds,
fertilizers, and other inputs. The
focus is on ensuring these materials
meet organic and sustainability
standards, supporting the overall
quality and environmental goals of
Group.
This is the stage where raw materials are produced. It
includes activities like growing crops, raising livestock, and
producing mushrooms and other vegetables. The emphasis is
on sustainable and organic farming practices to ensure high-
quality, environmentally friendly products.
In this stage, raw materials
undergo initial processing to
prepare them for further
manufacturing. This can include
cleaning, sorting, and basic
preparation of crops, vegetables
and livestock products. The goal
is to maintain the integrity and
quality of the raw materials and
adhere to ecological standards.
Here, the processed raw
materials are transformed into
finished products. This stage
includes more advanced
processing, packaging, and
preparation of products for
market. The focus is on
maintaining high standards of
quality and sustainability
throughout the manufacturing
process.
This stage involves the internal
administration and operations of Group,
including management, research, and
development. R&D focuses on innovating
and improving sustainable practices,
developing new products and technology,
and enhancing production efficiency. It also
includes managing subsidiaries, own
facilities, and ensuring operational control.
This stage covers logistics to get
finished products to market,
including transportation,
warehousing, and supply chain
management. It ensures efficient
and sustainable delivery to
consumers, gathers feedback for
improvement, and promotes
sustainable and organic food
consumption within the community.
Form of the
subsidiaries of the
Group
H Trade and logistics.
C Farming operations
D Mushroom growing and trade
A Agricultural activities
I Food production
Manufacturing of Group’s
products (external resources)
B Group’s cash pool
E Land management
F Lease of machinery
G Management of subsidiaries
J Technology development
H Trade and logistics
Impacts, dependencies, risks
Business operations and
business model
IRO Value Chain
Consolidated Management Report 2025
62
5.7 Policies
ESRS 2 MDR-P Policies adopted to manage material sustainability matters
To ensure that AUGA group’s operations meet transparency and integrity criteria, the
Group adheres to 8 core policies on good governance, social issues, and
environmental protection. These Group policies are based on best corporate practices
and are aligned with the Universal Declaration of Human Rights, the European
Convention on Human Rights and Fundamental Freedoms, the International Covenant
on Civil and Political Rights, the UN Guiding Principles on Business and Human
Rights, core ILO conventions, and other international and national legal acts of the
Republic of Lithuania, and are all publicly available on the AUGA group website:
General Policies and Executive Remuneration Policy.
Policies are reviewed regularly in accordance with the Group’s needs or changes in its
operations. In early 2026, the Environmental Protection and Human Rights Policies were
reviewed and updated. Managers responsible for the implementation of policies are
appointed to ensure that employees and responsible persons subordinate to them are
familiarized with them. Changes to policies are approved by the Board. The Group has
an approved process according to which an annual report on the implementation of
policies and recorded complaints for the past year is submitted to the Board no later than
the Company’s Annual General Meeting of shareholders.
In 2025, all new employees (250 or 100%) were introduced to the policies. All policies
apply to AUGA group employees and other members of management bodies, such as
members of the Board and Audit Committee. Employees are informed that if they
notice situations in which the Group's policy guidelines, commitments to reduce impact
or actions that do not comply with the provisions are violated, they can report this
anonymously by e-mail: etika@auga.lt. In 2025, no complaints were received or
violations were recorded regarding any policies approved by the Group. Upon receipt
of a complaint, the manager in charge of that area is immediately informed about the
situation, depending on the nature of the complaint, who must create a plan to resolve
the situation and implement it. The Group does not have uniform procedures for all
complaints. Situations are resolved in accordance with common internal procedures
and in compliance with the requirements of the law of the Republic of Lithuania.
Stakeholders are not included in the complaint creation mechanism or its
improvement. How each policy relates to the Group’s material sustainability topics, and
how it contributes to addressing or mitigating actual or potential impacts, as well as
how the policy’s objectives relate to the actions being implemented, is described
separately for each material topic. Some policies cover multiple material topics.
Title
Description
Disclosed in
sustainability
topics
Code of business ethics
(effective from 2019)
The code defines the principles of fair treatment of employees and compliance with international human rights standards as well as the importance of ensuring
equality, health and safety. It specifies the rules that govern the protection of private persons data, confidential information, business and financial documents,
proper care for work tools, the relationship with customers and competitors, and the general communication by the AUGA group.
S1, S3, S4
Environmental protection policy
(effective from 2019)
The document specifies the guidelines and principles for ensuring the management of AUGA group's impact on the environment in its daily activities. The
environmental protection policy envisages compliance with the requirements of environmental protection legislation and other obligations assumed by the Group,
in order to reduce the probability of incidents and their impact on the environment, to ensure biodiversity, and to reduce greenhouse gas emissions generated
during operations.
E1, E4, E5
Policy on human rights, non-
discrimination, child and forced
labour (effective from 2019)
This policy is aims to ensure the fundamental principles of human rights in accordance with the valid legal acts of the Republic of Lithuania and international
standards, in order for employees to feel safe in the working environment and to prevent and avoid any instance of discrimination or of forced or child labour.
S1
Animal welfare policy (effective
from 2019)
This policy provides guidelines and principles for ensuring animal welfare in the Group, setting out the basic principles to be followed in accordance with the
animal freedom guidelines recognised by the World Organisation for Animal Health. The policy defines the responsibilities of animal handlers for the continuous
improvement of farm animal welfare.
G1
Policy on the prevention of
corruption and conflict of
interest (effective from 2019)
This policy states that the Group does not tolerate corruption in any of its forms, and in case of specific manifestations of corruption in the organisation, it
immediately takes action to prevent such situations. It is the duty and responsibility of employees to act impartially, to not provide impermissible benefits to other
business entities, and not to get involved in situations that cause or could potentially cause a conflict of interest with the interests of the Group and/or have a
negative impact on the freedom of their own actions or decisions related to work functions.
G1
Employee safety and health
policy (effective from 2018)
This document identifies dangers and risks that may occur in the Group's activities. The policy also includes measures minimising the number of accidents.
S1
Supplier’s code of ethics
(effective from 2019)
This document, which defines relations with suppliers and their principles of activity, stipulates that it is important for the Group that its business partners conduct
their activities in accordance with the fundamental Environmental, Social and Governance (ESG) principles and the United Nations Sustainable Development
Goals. The Group expects its suppliers to comply with environmental regulations and animal welfare standards, as well as to care for human rights, employee
health and the prevention of any discrimination or child or forced labour.
G1
Executive Remuneration
Policy (effective from 2020)
The Executive Remuneration Policy sets out the principles, structure and forms of remuneration for the CEO and members of the Board of AUGA group, UAB,
including fixed remuneration, annual bonuses, incentive payments, share options and additional cash. The policy aims to ensure that remuneration is linked to
the Company's short and long-term strategic objectives, promotes responsible growth, long-term value creation for shareholders and other stakeholders, and
avoids conflicts of interest. The policy also enshrines the principles of transparency, non-discrimination, proportionality and market alignment.
S1
Consolidated Management Report 2025
64
water used
Our Activities and Achievements in 2025
9
9
Comparisons are to 2024. Indicators were recalculated retrospectively.
2
Areas planted with wheat, legumes, and other non-forage crops.
waste generated
share of crops are leguminous
2
33%
12%
energy consumed
5%
emission intensity per t of crop production
emission intensity per t of ECM milk
emissions from operations
54%
0,3%
68%
3%
Consolidated Management Report 2025
65
6.1 Taxonomy Review
The Taxonomy Regulation (EU) 2020/852 and its implementing legal acts establish a
classification system for sustainable economic activities and investments. It defines
activities that are considered to significantly contribute to achieving environmental
objectives, thereby supporting the implementation of the European Green Deal.
Companies are required to disclose what proportion of their activities, measured by
turnover, capital expenditures (CAPEX), and operational expenditures (OPEX), are
sustainable.
Based on the provisions of Article 8 of the Taxonomy Regulation, companies
established in the European Union with more than 500 employees are currently
required to disclose information on how and to what extent their activities are aligned
with the Taxonomy criteria. The Group falls within the scope of such companies;
therefore, in accordance with the procedure set out in the Taxonomy Regulation, the
Group has been providing disclosures in its annual sustainability reports since 2022.
Regulation (EU) 2020/852 (the Taxonomy Regulation) defines the criteria for
determining whether an economic activity qualifies as environmentally sustainable,
with the aim of assessing the environmental sustainability of investments.
Following the entry into force of the new amendment to the EU Taxonomy Delegated
Act (EU) 2026/73 on 28 January 2026, adopted in July 2025 under the European
Commission’s “Omnibus” initiative, the objective is to reduce the complexity of
reporting. Under this amendment, companies are given the option to apply the new
standard and to refrain from assessing the eligibility and alignment of activities whose
indicators account for less than 10% of the denominator of the relevant KPI (“de
minimis”). “AUGA group” has decided to retain the previous format during the
transitional period in order to maintain consistency in reporting.
As before, in the current version of the Taxonomy Regulation and its implementing
legislation, agricultural and food production activities are not included or classified.
Therefore, the alignment of the Group’s main segments (crop production, livestock
farming, mushroom cultivation, and FMCG) cannot be fully disclosed. At present, the
Taxonomy disclosures relate not to the Group’s core activities, but only to those
activities that fall within the scope of the Taxonomy classification.
For the disclosure of taxonomy-related activities in 2025, an assessment is made to
determine which of the Group's economic activities are subject to the Taxonomy (i.e.,
eligible) and which of these activities meet (are aligned with) the six environmental
objectives, including:
▪ Climate change mitigation;
▪ Climate change adaptation;
▪ Sustainable use and protection of water and marine resources;
▪ Transition to a circular economy;
▪ Pollution prevention and control;
▪ Protection and restoration of biodiversity and ecosystems.
Eligibility
When preparing the Taxonomy overview, the Group annually reviews its economic
activities and provides a list of activities that fall within the scope of the Taxonomy.
Following the discontinuation of technology development activities, and consequently
no longer carrying out “Research and experimental development” and “Manufacture of
renewable energy technologies,” the activities to which the Taxonomy classification
applies in 2025 are as follows:
Alignment
All listed activities were assessed for compliance with the sustainability criteria of the
Taxonomy Regulation in accordance with the following rules set out in the Taxonomy
Regulation:
▪ whether the activity meets minimum standards of social responsibility;
▪ whether the activity significantly contributes to one of the six environmental
objectives (significant contribution criteria);
▪ whether it does not cause significant harm to the remaining environmental
objectives.
Activities under Taxonomy
Business activities
Nace code
Electricity generation using
solar photovoltaic technology
Power plants installed on some of
the Company's farms
D35.11, F42.22
Transport by motorbikes,
passenger cars and light
commercial vehicles
Purchase and investment in
vehicles
H49.32, H49.39,
N77.11
Recovery of bio-waste by
anaerobic digestion or
composting
Biomethane production
E38.21, F42.9
Manufacture of biogas and
biofuels for use in transport
and bioliquids
Biomethane production
D35.21
Conservation, including
restoration of habitats,
ecosystems and species
Implementation of environmental
practices in agricultural activities
R91.04
Renovation of existing
buildings
Renovation of existing buildings
F41, F43
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66
Compliance with Minimum Social Responsibility Standards
The Group's activities comply with social responsibility standards - the Group adheres
to seven policies that ensure transparent relationships with all stakeholders. These
policies include the Business Ethics Code, Environmental Protection Policy, Human
Rights, Non-Discrimination, Child and Forced Labor Policy, Animal Welfare Policy,
Anti-Corruption and Conflict of Interest Prevention Policy, Employee Safety and Health
Policy, and Supplier Code of Ethics. These policies are based on best corporate
practices and principles to guarantee social protections for all parties involved.
The Group’s policies are developed in accordance with best corporate practices and
principles aligned with the Universal Declaration of Human Rights, the European
Convention on Human Rights and Fundamental Freedoms, the International Covenant
on Civil and Political Rights, the United Nations Universal Declaration of Human
Rights, the UN Resolution on Business and Human Rights, core conventions of the
International Labour Organization (ILO), and other international and Lithuanian legal
acts. More information on this can be found in
section 5.7 Policies.
Significant Contribution Criteria
After assessing the criteria for a significant contribution to one of the Taxonomy
objectives, it can be stated that, according to the Taxonomy description, it is fulfilled by
the following company activities:
1. Electricity production using solar energy contributes to the climate change
mitigation objective, as activity generates electricity using PV technology.
2.
Recovery of bio-waste by anaerobic digestion or composting activity
contributes to the circular economy criteria as the biological waste used for composting
is separately collected and not mixed with other waste types. The biological waste is
not collected in separate bags, making the biodegradability requirement of EN
13432:2000 certification irrelevant. In anaerobic digestion facilities, biological waste
constitutes at least 70% of the feedstock. Co-digestion may include up to 30% of
advanced bioenergy feedstock listed in Annex IX of Directive (EU) 2018/2001, which
must not include contaminated feedstock derived from mixed municipal and industrial
waste biomass fractions. The input materials exclude raw materials not listed in Part II
of Annex II of Regulation (EU) 2019/1009, specifically ingredient category (CMC) 3
(Compost) under point (c) and ingredient category (CMC) 5 under point (c). The
activity results in one of the following: compost or digestate meeting the requirements
of Regulation (EU) 2019/1009, particularly Annex II for ingredient categories (CMC),
specifically CMC 3 (Compost) and CMC 5 (Digestate, except fresh crop digestate), or
national rules on fertilizers or soil improvers with equivalent or stricter requirements
than Regulation (EU) 2019/1009; chemical substances derived from organic waste
converted into carboxylates, carboxylic acids, or polymers through fermentation using
mixed cultures. Quality assurance of the production process is carried out using the D1
module specified in Regulation (EU) 2019/1009. Compost and digestate that meet
Regulation (EU) 2019/1009 or equivalent national standards are not disposed of in
landfills. Preferably, digestate is composted after anaerobic digestion to maximize its
benefits to soil and mitigate potential agri-environmental issues such as ammonia and
nitrate emissions. Where anaerobic digestion is used, the produced biogas is directly
utilized for electricity or heat generation, upgraded to biomethane for fuel use, injected
directly into the gas grid, and further used for energy purposes as a substitute for
natural gas, or used as an industrial feedstock for producing other chemicals.
Do No Significant Harm (DNSH)
After conducting an analysis of the activities that significantly contribute to the
environmental objectives set out in the Taxonomy, the absence of significant harm,
and analysing the potential climate change risks to the activities and the environmental
risks posed by the activities, it can be seen that the activity "Electricity generation
using solar energy" partially meets the requirements set out and is not fully compliant
with the Taxonomy. After the Group suspended technology development activities
related to sustainable agricultural technologies, which were previously aligned under
Taxonomy criteria, none of the Group's activities meet all the criteria of the Taxonomy.
Accounting Policies
The revenue, OPEX (operational expenditures), and CAPEX (capital expenditures)
indicators correspond directly with the figures presented in the Group’s integrated
annual report and financial statements. The Group's financial statements are prepared
in accordance with International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU). Further details on data calculations can be found in the
consolidated and separate financial statements under
the Summary of Key Accounting
Principles section.
All disclosed key performance indicators (hereinafter – KPIs) related to activities falling
under the Taxonomy are calculated in a way that avoids double counting. This is
ensured by allocating the KPI numerator to separate, mutually independent activities.
As the Company’s activity “conservation and restoration of ecosystems and the
species living within them” does not generate turnover, OPEX, or CAPEX, no data is
disclosed for it.
To avoid double counting, the indicators for the activities “
Recovery of bio-waste by
anaerobic digestion or composting
” and “Manufacture of biogas and biofuels for use in
transport and bioliquids” are not disclosed separately, as both activities cover the
same biomethane production process. Compared to the previous reporting period, the
calculation methodology has remained unchanged.
Key Performance Indicators: Revenue, OPEX, and CAPEX
Turnover: Since 2024, when AUGA group started biomethane operations, the revenue-
generating activity has been the production of biogas and biofuels for use in transport
and of liquid bio-products. In 2025, this activity generated EUR 3.43 million turnover,
compared to EUR 1.11 million in the previous year. Another revenue-generating
activity falling under EU Taxonomy is electricity production from solar
Consolidated Management Report 2025
Criteria applies Criteria does not apply Aligned
Criteria applies Criteria does not apply Aligned
Criteria applies Criteria does not apply Aligned
Energy, which generated EUR 9.18 thousand during the reporting period, compared to EUR 20.8 thousand in the previous year. Out of the Company’s total turnover of EUR 51.48
million in 2025, approximately 7% is attributable to activities that fall within the EU Taxonomy.
CAPEX: For activities covered by the Taxonomy, total CAPEX in 2025 amounted to EUR 330.15 thousand. Out of total CAPEX of EUR 2.60 million (which was EUR 2.38 million in the
previous year), this represents 13%. This amount includes investments in transport by motorcycles, passenger cars, and light commercial vehicles (EUR 53.95 thousand); production
of biogas and biofuels for use in transport and of liquid bio-products (EUR 266.71 thousand); and renovation of existing buildings (EUR 9.54 thousand). The biggest CAPEX changes
result from pausing the R&D activities and technologies development.
OPEX: For activities covered by the Taxonomy, OPEX in 2025 amounted to EUR 2.94 million. This consists of expenses related to the production of biogas and biofuels for use in
transport and of liquid bio-products (EUR 2.94 million) and electricity generation from solar energy (EUR 3.63 thousand). Out of total OPEX of EUR 9.09 million, this represents 32%.
Group’s revenue, CAPEX and OPEX compliance with the Taxonomy criteria is presented in the graphs below.
CAPEX
OPEX
Turnover
7%
93%
13%
87%
32%
68%
Consolidated Management Report 2025
64
Disclosure of turnover share
Substantial contribution criteria
DNHS criteria
Economic activities
Code(s)
Absolute turnover, mln.
EUR
Proportion of turnover
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Taxonomy aligned
proportion of turnover,
2024
Taxonomy aligned
proportion of turnover,
2023
Category (enabling
activity)
Category (transitional
activity)
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
1. Transport by motorbikes, passenger cars
and light commercial vehicles
H49.32,
H49.39,
N77.11
0
0%
N
N
-
-
2. Electricity generation using solar
photovoltaic technology
D35.11,
F42.22
0,009
0.02%
T
N
T
N/
A
N
N/
A
N
-
-
3. Recovery of bio-waste by anaerobic
digestion or composting
E38.21,
F42.9
0
0%
T
N
N
N
N
N
-
-
4. Manufacture of biogas and biofuels for use
in transport and bioliquids
D35.21
3,43
6.66%
N
N
-
-
5. Conservation, including restoration of
habitats, ecosystems and species
R91.04
0
0%
N
-
-
6. Renovation of existing buildings
F41,
F43
0
0%
N
N
0
0
-
-
Total (A.1 + A.2)
3,43
6.68%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy non-eligible activities
(B)
48,05
93.32%
Total (A + B)
3,43
100%
Consolidated Management Report 2025
65
Disclosure of CAPEX share
Substantial contribution criteria
DNHS criteria
Economic activities
Code(s)
Absolute CAPEX, mln.
EUR
Proportion of CAPEX
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Taxonomy aligned
proportion of CAPEX,
2024
Taxonomy aligned
proportion of CAPEX,
2023
Category (enabling
activity)
Category (transitional
activity)
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
1. Transport by motorbikes, passenger cars
and light commercial vehicles
H49.32,
H49.39,
N77.11
0,054
2.08%
N
N
0
0
-
-
2. Electricity generation using solar
photovoltaic technology
D35.11,
F42.22
0
0%
T
N
T
N/
A
N
N/
A
N
0
0
-
-
3. Recovery of bio-waste by anaerobic
digestion or composting
E38.21,
F42.9
0
0%
T
N
N
N
N
N
0
0
-
-
4. Manufacture of biogas and biofuels for use
in transport and bioliquids
D35.21
0,27
10.26%
N
N
0
0
-
-
5. Conservation, including restoration of
habitats, ecosystems and species
R91.04
0
0%
N
0
0
-
-
6. Renovation of existing buildings
F41,
F43
0.009
0.37%
N
N
0
0
-
-
Total (A.1 + A.2)
0,33
12.71%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
CAPEX of Taxonomy non-eligible activities (B)
2,27
87,29%
Total (A + B)
2,6
100%
Consolidated Management Report 2025
66
Disclosure of OPEX share
Substantial contribution criteria
DNHS criteria
Economic activities
Code(s)
Absolute OPEX
Proportion of OPEX
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Climate change
mitigation
Climate change
mitigation
Water and marine
resources
Circular economy
Pollution
Biodiversity and
ecosystems
Taxonomy aligned
proportion of OPEX,
2024
Taxonomy aligned
proportion of OPEX,
2023
Category (enabling
activity)
Category (transitional
activity)
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
1. Transport by motorbikes, passenger cars
and light commercial vehicles
H49.32,
H49.39,
N77.11
0
0%
N
N
0
0
-
-
2. Electricity generation using solar
photovoltaic technology
D35.11,
F42.22
0,004
0.04%
T
N
T
N/
A
N
N/
A
N
0
0
-
-
3. Recovery of bio-waste by anaerobic
digestion or composting
E38.21,
F42.9
0
0%
T
N
N
N
N
N
0
0
-
-
4. Manufacture of biogas and biofuels for use
in transport and bioliquids
D35.21
2,94
32%
N
N
0
0
-
-
5. Conservation, including restoration of
habitats, ecosystems and species
R91.04
0
0%
N
0
0
-
-
6. Renovation of existing buildings
F41,
F43
0
0%
N
N
0
0
-
-
Total (A.1 + A.2)
2,94
32.04%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
OPEX of Taxonomy non-eligible activities (B)
2,94
67.96%
Total (A + B)
9,09
100%
Consolidated Management Report 2025
67
Environmental protection is an integral part of the Group's sustainable activities.
Starting this year, AUGA group, in accordance with ETAS requirements, discloses
material topics in the report based on the dual materiality and IRO assessment and
reviews the causes, goals, objectives and actions determining the impacts or
opportunities for 2024. The Group's material topics in the environmental topic are:
climate change and emission reduction, renewable energy, innovation and technology
leadership, biodiversity and ecosystems, circular economy and resource use, waste.
These topics will be reviewed in more detail in the Environmental section.
6.2 Climate change
E1 Climate change
The climate change section aims to disclose the Group’s efforts in mitigating climate
change through its strategy, business model, and daily operations, thereby contributing
to the growth of a sustainable economy and the limitation of global warming to 1.5 °C.
Transition plan and targets for climate change mitigation
E1-1 Transition plan for climate change mitigation
E1-4 Targets related to climate change mitigation and adaptation
According to the Intergovernmental Panel on Climate Change (IPCC), agriculture
accounts for about 22% of all global greenhouse gas emissions.
10
Back in 2020,
AUGA group announced its business strategy, the focus of which was to increase
efficiency in all business segments and reduce emissions from operations through a
new, more sustainable farming standard based on innovative emission-reducing
technologies. By aiming to have a positive impact on the Group’s operations and the
sector in terms of emissions, this strategy also responds to key international and
national climate goals. It is consistent with the Paris Agreement, under which the
United Nations countries committed in 2015 to limit global warming to 1.5 °C and to
achieve climate neutrality
.
11
It is also in line with the European Green Deal, formulated
in 2020, one of the long-term goals of which is to ensure climate neutrality by 2050.
12
It
is also important to note that Lithuania also has emission reduction targets, which are
defined in the "National Climate Change Action Plan". The target for the agricultural
sector is 11 percent less emissions by 2030 (compared to 2005).
13
The GHG emission reduction targets set out in the Group’s 2020-2025 Strategy were
set based on the results of the Group's calculations of emissions generated in its
operations. The first emission calculations were carried out back in 2018. Having
identified that the main sources of pollution in the AUGA group's operations are
10
Sixth Assessment Report of the Intergovernmental Panel on Climate Change, Synthesis Report 2023
11
Paris Agreement on Climate Change, 2015
12
European Green Deal, 2019
14
National Climate Change Management Agenda,2021
15
Business Ambition for 1.5°C: Our Only Future
16
Science based targets
emissions from soil, cattle digestion processes and manure management, and the use
of fossil fuels in production, specific innovative technologies or methods were
envisaged to help reduce this footprint.
It is important to mention that in 2021, AUGA group became one of the first companies
in the Baltic States to join the international initiative “Business Ambition for 1.5°C”.
14
The group's emission reduction targets have been assessed by international experts,
who have acknowledged that AUGA group's plan to reduce Scope 1 and Scope 2
emissions by 27% by 2025 is in line with Science Based Targets (SBT)
15
– as
illustrated in the graph below.
These initial data validated by the SBT show that the Group’s chosen direction and
objectives met the global need to prevent the progress of climate change. However, in
order for these goals to be officially approved according to the SBT methodology, it is
necessary to include a full accounting of Scope 3 – indirect emissions. The Group is
not yet calculating Scope 3 emissions in full due to a lack of data. Although the
Group’s emission reduction targets contribute to climate change mitigation, only after a
full accounting of all three emission volumes and receiving a re-assessment by the
SBT will AUGA group be able to become a full member of this initiative.
Consolidated Management Report 2025
68
Since the Group operates on the principle of a circular economy, the strategy called for
integrating emission-reducing alternatives into the existing closed-loop model, with the
aim of enabling the Group to achieve its goals through the successful implementation
of technologies and sustainable working methods that have been developed and
integrated into the business model. Although some of the Group’s companies initiated
restructuring processes in 2024, the strategy remained relevant in 2025; however, the
technological development component was put on hold, which may affect the
achievement of the strategy’s long-term goals. More details about the goals set in the
strategy are disclosed in section 1.4 Strategy. Further details on the results of the
implementation of the 2020–2025 strategy’s objectives, as well as the main
achievements and challenges during this period, are described in Section 1.4.1,
Strategy Implementation.
Objectives and progress
To assess progress on climate change, the Group monitors GHG emissions and
changes annually. This monitoring allows for self-assessment of progress and risk
factors, and for decisions to be made that allow for positive change, as well as monitor
and correct negative ones. The Group’s strategy included quantitative targets, and the
table below reflects the progress of the Group in implementing its objectives over a
few-year period and their results calculated in terms of the equivalent of emissions
generated in tonnes. The table shows data for 4 years, excluding the base year
(2019), from which emission reduction targets are calculated. The reason for this is
that the emission calculation methodology was updated in 2023, according to which
the 2022 indicators were retrospectively recalculated. Recalculation of previous data,
as well as base years, in accordance with the new methodology is not possible, as this
requires data that was not previously collected in the Group companies or the relevant
business activities were not carried out. The Group had set a goal to recalculate
emission reduction targets and objectives during 2024 and to establish a base year
from which progress is tracked, but this was not implemented due to restructuring
processes initiated at the Group level, which are described in more detail in sub-topic
5.1.4 Disclosure of information related to special circumstances.
*GHG emission intensity indicators are calculated by dividing the annual GHG emissions from the specified economic activity units
** In order to align the GHG calculation methodology with the latest recommendations applicable to companies in the agricultural
sector, new GHG emission sources from the land use, land use change and forestry sectors have been included in the Group’s
accounting from 2023. The 2022 indicators were also retrospectively recalculated according to the updated methodology. However,
recalculating indicators older than three years (<2022) in accordance with the new methodology would be inaccurate, as this requires
data that was not previously collected in the Group’s companies or the relevant business activities were not carried out. The base
year (2019) set out in the Group’s strategy cannot be retrospectively recalculated and used to compare annual emissions.
*** ECM (energy corrected milk) is a relative unit of measurement for milk. Raw milk production is converted into 4% fat and 3.3%
protein adjusted milk.
Technology development
As mentioned earlier, the Group had identified specific technological solutions
(technologies) that would directly determine the potential for making progress toward
the emission reduction targets set out in the strategy AUGA Tech, a company
indirectly owned by AUGA group, is responsible for the development of sustainable
technologies within the Group. During the strategy implementation period a newly built
team of engineers, combined with existing agricultural expertise and a sandbox
environment for testing technologies in real farming conditions, enabled the creation of
a technology portfolio. This portfolio includes: the AUGA M1 hybrid tractor powered by
biomethane and electricity (technology readiness level (TRL) 8 – pilot batch
production), the multifunctional electric agricultural tractor/platform AUGA E1 (TRL 6 –
prototype development), and a sustainable feed production and feeding technology
(TRL 6 – prototype development). The technologies were developed at different times,
which is reflected in their varying levels of technological readiness (more information
about each technology is provided below). In 2024, the joint technology portfolio was
introduced to the public under the name Mission no cost to nature. However, due to
the restructuring process initiated in the fourth quarter of 2024, the Group decided to
suspend its technological development efforts and therefore did not achieve any
additional Innovation Agenda goals during 2025. More information about the Group’s
technologies is presented below.
Biomethane production
This is an integral part of the circular economy business model developed by AUGA
group, which allows the production of sustainable energy that addresses one of the
largest sources of GHG in agriculture (methane emitted by livestock waste). By
effectively utilizing secondary raw materials generated in agriculture (livestock and
poultry manure), the Group not only reduces its emissions - but it is also a new
economic activity that generates additional income. In less than five years, the Group
has developed this sustainable, circular cycle-completing activity into a commercial
one and in 2024 began the production and sale of biomethane gas through the natural
gas system using a remote injection point.
In 2025, the Group collected a total of about 121 thousand tons of cow manure and
chicken manure from its livestock farms for biomethane production (an additional part
of the raw materials was purchased from external suppliers), which allowed saving
approximately 2,7 thousand t of CO
₂e emissions. This emission reduction shows
how much CO₂ and other greenhouse gases, such as methane or nitrogen, would
Scope 1 emissions sources, t CO₂e
2025
2024
2023*
2022**
Fossil fuel consumption
15 817
18 308
19 272
20 074
Emissions per ton of produced
cow’s milk – t CO₂e / t ECM milk***
0,78
0,78
0,99
0,98
Emissions per ton of produced crop
output (dry matter) – t CO₂e / t crop
production
0,37
1,16
0,42
0,50
Scope 1, 2, and 3 GHG emissions, t
CO₂e
2025
2024
2023
2022
Total:
83 780
183 758
80 731
86 206
Consolidated Management Report 2025
69
have been released into the environment if the slurry had been managed normally.
Also, during the reporting period, the Group sold a total of about 29 thousand MWh of
biomethane to the market and, based on ISCC (International Sustainability and Carbon
Certification) certificates and the GHG savings indicated in them when producing
Renewable fuels saved about 20 thousand tons of CO2 emissions for the buyers of
these gases, thus contributing to the development of green energy. This number of
emissions is not deducted from the Group’s total emissions in order to avoid double
counting of emissions.
Sustainable fuel-powered agricultural machinery
Although in the 2024 report the Group announced a decision to suspend the
expansion of machinery and, therefore, additional Innovation agenda objectives were
not implemented during the 2025 period, prior to that the Group developed a
biomethane- and electricity-powered hybrid tractor prototype AUGA M1 in 2021 and
introduced its production batch in 2023, consisting of three tractors. In 2025,
biomethane- an electricity-powered hybrid tractors AUGA M1 were used in the Group’s
operations for third season in real farm conditions. In addition, a multifunctional electric
tractor AUGA E1 was also used in operations. In 2025 tractors have been tested in
real farm conditions for the third season – in about two months, two tractors performed
agricultural work on 133 ha of the Group’s fields, consuming about 1 t of
biomethane gas.
Feed production and feeding technology prototype
This prototype includes centralized production of sustainable feed, its supply,
automated feeding and full science-based monitoring and reduction of methane and
other greenhouse gases (GHG) emitted during milk production using artificial
intelligence. One part of this technology – specialized feeds – has been under
development since 2021. AUGA Tech conducted laboratory and feeding studies of
feeds. The results of the technology tests were evaluated by comparing a group of
cows receiving a new feed with a group fed standard feeds. After 2 years of testing, it
was found that the specialized feed technology allows for an increase in milk yield
without affecting milk quality and a 32% reduction in methane emissions generated
by the digestive processes of cows per liter of raw milk. The test results were
evaluated by scientists from the Veterinary Academy (VA) of LSMU, who confirmed the
validity of the results. In 2025, the feed production technology received a National
Patent.
Regenerative crop rotation
The AUGA group crop farms apply a regenerative crop rotation method – this means
that grain crops (wheat, barley, oats, rye) are replaced by perennial grasses (such as
alfalfa or clover) or leguminous grain crops (such as peas, beans, soybeans), which
can accumulate carbon and fix nitrogen in the soil. The annually increased areas of
perennial grasses and legumes reduce dependence on organic fertilizers and
contribute to reducing emissions in the crop sector. In 2025, leguminous crop areas
accounted for 15 percent of the total crop rotation. All technological solutions are
being developed in Lithuania. Agricultural machinery powered by sustainable fuels and
specialized feed technology are currently not yet integrated into the Group's activities,
Operational and capital costs for implementing actions
Due to the restructuring procedures initiated by some of the Group's companies during
the reporting period, a decision was made to halt technology development. Therefore,
the amount invested (OPEX, CAPEX) in 2025 for the development and expansion of
the mission “No Cost to Nature” farming technology projects developed by “AUGA
Tech” amounted to EUR 0, as no investments were made. For these reasons, the
number of future investments also can not be provided.
Disclosures in relation to specific circumstances
ESRS 2 BP-2 Disclosures in relation to specific circumstances
During the strategy implementation period (since 2020), the Group managed to
achieve a breakthrough in the field of technology development, including the year
2024, when the Group's portfolio of emission-reducing technologies was introduced,
significant patents were obtained, tests were carried out in real-world conditions, and
biomethane production and commercialization began. Although these technologies
have a high potential to reduce emissions, based on scientific calculations, not only in
the activities of the Group, but also in the entire agricultural sector, after taking into
account the Group’s current economic situation and the need to focus on stabilizing
operations and ensuring efficiency and solvency ,in the context of restructuring and the
changing market demand for non-polluting agricultural technologies, the Group
decided to pause technology commercialization plans in the end of 2024. The level of
technological readiness achieved so far allows some of the innovative solutions to be
used in production activities, therefore the Group will seek to employ them to the
extent that is possible today. It is important to note that during the reporting period the
Group continued to implement the sustainable production practices applied so far in
order to reduce its environmental impact. In 2025 the Group continued to assess the
progress of its goals and objectives, as defined in the strategy, but at the same time it
assesses that the suspended technology development projects and their practical
application in production had a minimal impact on the achievement of the long-term
goals of the Strategy. Further details on the results of the implementation of the 2020–
2025 strategy’s objectives, key achievements, and challenges during this period are
described in Section 1.4.1. Implementation of the Strategy.
Consolidated Management Report 2025
Description of the processes to identify and assess material climate-related impacts, risks and opportunities
2 ETAS IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities
2 ETAS SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
To assess how the Group's material sustainability topics are related to the Climate change topic, during the IRO assessment, impacts and/or opportunities were evaluated based on
whether they are actual or potential, positive or negative, and a broader description of each IRO aspect is provided. During the assessment, IRO aspects were also highlighted based
on their position in the value chain,
and their link to the business model was evaluated, with a more detailed representation available in section 5.6 Significant Impacts, Risks and
Opportunities (IRO) . A more detailed overview of these results is presented below:
Material topics for
the Group
IRO aspects
Description
Period
Place in the value
chain
Link to strategy and
business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into
the strategy and
business model
Climate change
and emission
reduction
Positive actual impact:
Application of more sustainable
agricultural technologies and
practices
By applying more sustainable technologies and practices, such as
regenerative crop rotation and min-till farming technology, the Group
contributes to climate change mitigation.
•
•
•
•
•
Negative actual impact:
GHG emissions from direct and
indirect activities
Operating in crop growing, livestock, and mushroom growing farming
segments, the Group contributes to negative environmental impact due
to GHG emissions resulting from both direct and indirect activities.
•
•
•
•
•
•
•
Renewable energy
Positive actual impact:
Use of renewable energy
The Group uses renewable energy on its farms and contributes to
climate change mitigation.
•
•
•
•
Innovation and
technology
leadership
Potential opportunity:
Technology leadership
A portfolio of emission-reducing technologies (agricultural machinery
and feed systems) has been developed and patented.
•
•
•
•
Actual opportunity:
Biomethane production from
secondary raw materials of
livestock farming activities
Biomethane is a sustainable alternative to fossil fuels. By producing it,
AUGA group efficiently addresses the issue of utilizing secondary raw
materials from farms and contributes to climate change mitigation.
•
•
•
•
•
•
•
Estimated period. Following the assessment, all IRO aspects were classified as long-
term (more than 5 years). Since AUGA group operates in the agricultural sector, its
activities inevitably generate greenhouse gas emissions, resulting in an actual long-
term negative impact on the environment. However, the Group has set a strategic goal
to significantly reduce emissions in agriculture by developing and implementing its own
innovative technologies, applying more sustainable practices (e.g., the use of green
energy, regenerative crop rotation, etc.), and actively using renewable energy sources.
Sustainability is one of AUGA group's core strategic directions. Therefore, sustainable
solutions will continue to be implemented across the Group, taking into account
operational cycles, market opportunities, and measurable economic impact — thus
creating a long-term positive actual impact. To not only reduce emissions from its own
activities but also encourage other agricultural players to follow this example, AUGA
group has developed a portfolio of emission-reducing technologies. The development,
testing, and market introduction of these technologies is a long-term process that
requires time, investment, and a shift in market demand. As such, the full potential of
these technologies is expected to unfold over a longer period. Another economic
activity implemented by the Group is the production of biomethane from secondary raw
materials of livestock farming activities (such as cattle manure). Biomethane has
become a key part of the Group’s circular model, allowing for the efficient use of the
energy stored in secondary raw materials and helping reduce emissions from livestock
operations. From both an environmental and economic perspective, biomethane
production is considered a valuable long-term opportunity.
Position in the value chain. The assessment showed that the application of more
sustainable agricultural technologies and practices, as well as the use of renewable
energy, has an impact within AUGA group’s operations, while technology leadership
Consolidated Management Report 2025
71
has been identified as a potential opportunity in the same part of the value chain. This
conclusion is based on the fact that the largest share of emissions originates directly
from AUGA group’s production activities – such as soil emissions, ruminant digestion,
fossil fuel usage, manure management, and others (for more on emissions distribution,
see section Greenhouse gases). In
response, the Group applies both existing
emission-reducing solutions and develops its own innovative, environmentally friendly
technologies that aim to reduce emissions where they are generated most – in the
Group’s production activities.
The IRO aspect related to GHG emissions from direct and indirect activities has an
actual negative impact across all parts of the value chain: upstream, operational, and
downstream. Suppliers of raw materials (which the Group cannot produce itself),
processors that convert Group-grown raw materials into final products, and packaging
manufacturers all contribute to the creation of emissions. Therefore, GHG emissions
span the entire value chain and create an actual negative impact. It is important to
note that the production of biomethane from secondary raw materials of livestock
farming activities has been identified as an actual opportunity encompassing the full
value chain. The Group produces biomethane not only from manure generated on its
own farms but also by purchasing poultry manure from suppliers. Additionally, the
Group leverages partners’ biogas production technologies and uses its own
purification equipment to upgrade biogas into biomethane.
Link to the strategy and business model.
During the assessment of the IRO aspects, it
was determined that the application of more sustainable agricultural technologies and
practices, GHG emissions from direct and indirect activities and biomethane
production from secondary raw materials generated in agriculture arise directly from
the business model, affect its results and are integrated into the Group's long-term
strategy and operating principles. Due to the lack of technologies and solutions in the
crop, livestock and mushroom sectors that would allow for emission reduction, a
negative impact becomes inevitable in the Group's activities. The strategic decision to
produce biomethane allows for the efficient use of secondary raw materials generated
in agriculture, converting them into sustainable energy. This activity not only solves the
issues of raw material utilization, but also generates additional income, directly
influencing the business model and cash flows. The Group has also strategically
integrated the use of renewable energy into its business model. This helps to reduce
emissions, optimizes energy costs and contributes to the sustainability of the Group's
activities. The aspect of technology leadership stems from the Group's business model
and is integrated into the strategy as an expected opportunity. One of the strategic
directions of AUGA group is focused on reducing emissions by developing innovative
and sustainable agricultural technologies. This activity will provide a competitive
advantage in the long term and will allow for more effective solutions to environmental
challenges. However, as long as the technologies are not yet commercialized on the
market, this aspect has no direct impact on the business model.
IRO aspects – risks
The following related physical risks were identified with "Climate Change" and the
Group's identified significant sustainability topics: environmental physical risks related
to climate change (temperature and precipitation variability, cyclones, storms,
droughts, changing wind directions, soil degradation and erosion, etc.). The following
restructuring risks have also been identified: financial impact due to increased
compliance requirements for manufactured products; financial impact due to increased
requirements for sustainability and audit reporting; increased costs of environmental
compliance (due to stricter requirements for organic products, including certification
costs and strict eco-standards, etc.), risks related to raw material prices and demand
(due to fluctuating prices of organic and conventional raw materials, unclear market
signals, changing customer behavior and preferences, etc.), risks related to the
continuity of research and experimental development arising from funding uncertainty,
a shortage of qualified personnel or staff turnover, increasing regulatory requirements,
unclear future demand, and potential reputational challenges, new business activities
related to biomethane operations, fluctuations in raw material prices and demand (due
to changing prices of green and conventional raw materials, uncertain market signals,
and changing customer behavior and preferences).
The assessment found that in 2025, this risk: fluctuations in raw material prices and
demand (due to changing prices of organic and conventional raw materials, uncertain
market signals, and shifting customer behavior and preferences) are classified as a
priority risk and are therefore monitored and managed in accordance with approved
internal policies. These significant risks are also presented in the IRO
the value chain
table to illustrate their link to the business model and the overall concentration of risks
across the value chain. This also allows for the focus on the links between risks,
impacts and environmental dependencies. Other non-priority physical or
transformation risks were not further assessed in terms of how resilient the Group’s
strategy and business model are to climate change in the resilience analysis, and the
Group did not use climate-related scenario analysis.
Consolidated Management Report 2025
72
Climate change mitigation policies, actions and resources
E1-2 Policies related to climate change mitigation and adaptation
E1-3
Actions and resources in relation to climate change policies
The Group has an Environmental Protection Policy, which defines and manages the topic of Climate Change. The Policy is valid for the Group and applies to all employees. The table
below presents the Environmental Protection Policy, its purpose and the main actions taken during the reporting period. It is important to note that all newly hired employees (250)
were introduced to the Environmental Protection Policy, and no violations related to this policy were recorded.
Material topic
Actual or potential impact and
opportunities
Policy applied by
the Group
Policy target
Key actions in 2025 and monitoring results
Climate change
and emission
reduction
Positive actual impact:
Application of more
sustainable agricultural
technologies and practices
Environmental
policy
To monitor the environmental impact of the Group’s
activities by calculating the carbon footprint.
Strive to ensure that environmental protection
matters are addressed in accordance with the
highest international standards by applying modern
tools and implementing efficient processes that
reduce environmental impact.
In 2025, the area of leguminous crops capable of storing carbon and
fixing nitrogen in the soil accounted for 15 percent of the total crop area.
The Group, by applying long-term, regenerative crop rotation and
optimizing fertilizer use, monitors the annual amount of nitrogen (N) used
for fertilization and GHG emissions caused by nitrogen fertilization.
The Group’s greenhouse gas emissions decreased by 54% in 2025
compared to 2024. This change was due to the fact that no significant
changes in agricultural practices were implemented in 2025 - unlike in
2024, when some fields were converted to regenerative conventional
farming methods.
About 121 thousand tons of the Group's slurry and manure were used for
biomethane production - this allowed saving about 2,7 thousand t of CO₂e
emissions.
The produced biomethane gas allowed its users to save about 6 thousand
tons of CO₂ emissions by choosing a renewable fuel.
The Group’s company AUGA Trade has received the ISCC EU
international sustainability and carbon dioxide certificate, which meets the
requirements for sustainability and greenhouse gas emission reduction
criteria.
Negative actual impact:
GHG emissions from direct
and indirect activities
Renewable
energy
Positive actual impact:
Use of renewable energy
Environmental
policy
To use renewable energy sources.
Two AUGA M1 tractors consumed about 1 ton of biomethane gas.
The group used only green energy on its farms, thus saving 2 thousand
tons of CO₂e emissions. Part of this energy – 46 thousand kWh – was
generated by Group’s on four of its farms using solar panels.
Innovation and
technology
leadership
Potential opportunity:
Technology leadership
Environmental
policy
Develop and implement technologies aimed at
reducing the Group’s GHG emissions in the
following three key areas: the use of fossil fuels, soil
cultivation, and cattle digestion processes.
Although technology development activities were suspended in 2025, the
previously developed biomethane- and electricity-powered hybrid tractors
AUGA M1 continued to be used in the Group’s operations, operating in
real farm conditions in a part of the Group’s fields (133 ha).
A new economic activity is continued – biomethane production and sale of
this gas to the European market.
A total of 29 thousand MWh of biomethane were sold to the market.
Actual opportunity:
Biomethane production from
secondary raw materials of
livestock farming activities
Consolidated Management Report 2025
Energy consumption
E1-5 Energy consumption and mix
Group’s companies use only certified green electricity. The Group produces part of its
energy internally, using renewable sources - in four of the Group's companies, solar
power plants are employed, green energy is generated, which is used for the Group's
needs, and part is sold to the electricity supplier. The amount of electricity produced
and sold to the market during the reporting period corresponds to the energy
consumed in the AUGA group offices during the same period. The Group monitors
energy costs related to its activities and direct and indirect energy consumption.
It is important to note that from 2024. after starting to develop biomethane production,
the Group also began to monitor direct renewable energy consumption related to this
activity. More detailed information and energy comparisons between years are
provided in the table.
Direct and indirect energy consumption*
Energy, GJ
Energy distribution, %
Energy type
2025
2024
2025
2024
Natural gas
11 866
11 787
4,1%
3,9%
Liquefied natural gas
(LNG)
10 488
8 596
3,7%
2,8%
Gasoline
1 965
2 026
0,7%
0,7%
Diesel
190 729
228 710
66,4%
75,6%
Diesel for drying products
7 555
4 961
2,6%
1,6%
Biomethane
53
1 712
0,02%
0,6%
Total direct energy:
222 656
257 683
Electricity
64 482
44 710
22,4%
14,8%
Heating
129
140
0,04%
0,05%
Cooling
50
84
0,02%
0,03%
Total indirect energy:
64 661
44 934
Total:
287 317
302 617
In 2025, AUGA group consumed 14 thousand gigajoules (GJ) or 5% less direct
energy than in previous years. Starting in 2024, with the launch of its new
biomethane production operations, the Group began tracking the energy consumption
associated with its production, as well as other fuels—such as diesel, which is used to
transport raw materials and produced gas between facilities and to the natural gas
injection point. The main reason for the change in direct energy consumption was the
development of the Group’s slurry supply for biomethane production using integrated
systems, which reduced fuel costs for transportation. However, as biomethane
production volumes increased during the reporting period, significantly more electricity
was consumed for capacity development compared to the previous year. Additionally,
due to the exceptionally cold winter, the livestock sector consumed more energy for
heating facilities, which further contributed to higher overall energy costs in this sector
compared to the previous year. In addition, lower indirect energy demand was
recorded at the Group’s administrative offices, driven by a cooler summer. Demand for
liquefied petroleum gas and diesel fuel increased by 22% and 52%, respectively,
during the reporting period. This growth was influenced by the fact that conventionally
grown crops in the crop production sector are harvested drier than organic ones;
therefore, due to wetter weather, the Group consumed more energy to dry them
Group unites many companies engaged in various activities. Due to the different
nature of their activities, the Group has not provided centralized rules on energy
consumption and reduction. Each company independently implements energy saving
initiatives according to the nature of its activities. Energy consumed outside the
Group’s activities and in the supply chain (upstream, downstream) is not calculated
due to lack of data.
Energy consumption by sector
Energy, GJ
Sector
2025
2024
2023
Variance
2025/24
Crop growing
287 317
167 756
178 551
-19%
Mushroom growing
136 169
63 418
65 552
-1%
Animal husbandry
32 328
32 800
27 099
+14%
Biomethane production
36 459
1 510
-
+2315%
Consolidated Management Report 2025
74
Energy consumption intensity
1
In 2022, energy consumption and intensity indicators were retrospectively recalculated according to the latest energy density
coefficients. For more information, see the “Group’s Greenhouse Gas Emissions Accounting” section
of the “Sustainability in the
Group” section.
2
ECM (energy corrected milk) is a relative unit of measurement for milk. Raw milk production is converted into milk adjusted for
4% fat and 3.3% protein.
Energy intensity indicators are calculated by dividing the Group’s annual energy
consumption by units of economic activity. They show how much energy is consumed
to implement a specific activity. AUGA group calculates energy intensity in financial,
production, arable land and other units. The types of energy included in the energy
intensity calculation indicators include direct and indirect types of energy. When
calculating per cattle, ton of milk, per hectare or ton of mushroom production, energy
costs assigned to the relevant segment of activity are taken into account – animal
husbandry, crop farming, mushroom cultivation, biomethane production.
In the crop sector, energy intensity was lower (9% less per hectare and 20% less per
unit of crop production). The decrease was due to both a 1% higher yield and a -19%
lower total energy consumption, especially diesel consumption (32 thousand GJ, or
22% less).
An increase in energy consumption per unit of mushroom production is observed,
mainly driven by higher diesel use for heating (9 thousand GJ, or 14% more diesel
than in 2024).
During the reporting period, the biomethane production sector saw significant growth in
key indicators. This change was primarily driven by increased electricity consumption
associated with the steady expansion of biomethane production capacity. As
production volumes increased, so did the intensity of technological processes,
resulting in a proportional increase in electricity demand, which contributed to the
sector’s overall growth.
Indicator
2025
2024
Variance
2025/24
GJ / 1 mln. EUR income
5 581,1
3 546,1
+57%
GJ / 1 employee
306,6
293,9
+4%
GJ / 1 cattle
4,5
4,6
-1%
GJ / t ECM of milk
2
1,1
1,0
+2%
GJ / ha
4,1
4,4
-9%
GJ / t crop production
1,0
1,2
-20%
GJ / t mushroom production
7,3
5,9
+23%
GJ / t cow manure in biomethane
production
0,4
0,03
+960%
Consolidated Management Report 2025
75
Greenhouse gases
E1-6 Gross Scopes 1, 2, 3 and total GHG emissions
Group’s greenhouse gas emissions accounting
AUGA group has been calculating greenhouse gas (GHG) emissions from its
operations since 2018. From 2019 to 2023, the GHG accounting was verified annually
by independent auditors Carbon Footprint in accordance with the ISO14064-3
standard. In 2020, the Group set goals to reduce GHG emissions generated in its
operations and planned measures to achieve this, and also constantly strives to
improve and expand GHG accounting.
The Group accounts for these direct and indirect GHG emissions. Direct emissions
(Scope 1) include all sources controlled by the Group in developing its activities.
Indirect emissions (Scope 2) are generated from energy that the Group purchases
from other suppliers. Other indirect emissions (Scope 3) include emissions that are not
included in the calculations of the first two categories but are directly related to the
Group's activities and the initial and final value chain. Based on actual consumption,
the following indirect emission sources are calculated: Extraction and supply of
drinking water, wastewater; Electricity and heat transfer losses; Management of waste
generated in production; Post-consumer management of packaging released on the
market; Paper for office purposes; Business travel; Biomethane transportation
leakage.
Due to the structural and functional changes that occurred in 2023, the Group
substantially revised the methodology for calculating Scope 1 emissions and included
new sources of GHG emissions resulting from the conversion of part of its cultivated
land to conventional agriculture. Also, in order to calculate GHG emissions as
accurately as possible, a transition was made to more detailed accounting in the
livestock sector, taking into account the manure management system on each farm. In
order to align the GHG calculation methodology with the latest recommendations
applicable to companies in the agricultural sector
16
, new sources of GHG emissions
from the land use, land use change and forestry sector (LULUCF, hereinafter referred
to as the LULUCF sector) were included in the Group’s accounting. The LULUCF
sector focuses on the carbon cycle – the movement of carbon between the
atmosphere and the terrestrial biosphere. The LULUCF sector includes both carbon
dioxide release and carbon absorption in biomass and soil. Carbon absorption occurs
in living biomass, dead wood, forest floor, soil and various wood products. AUGA
group does not carry out forestry activities and does not contribute to land use change
(e.g. from wetland drainage), therefore the Group's LULUCF emissions include (1)
GHGs released from soil into the atmosphere and (2) GHGs absorbed in soil. When
modelling the balance of organic carbon accumulated/lost in soil, the tillage practices
applied in each field and their intensity were taken into account. The Group’s
accounting also includes cultivated, historically drained organic soils, which in
16
SBTi Forest, Land and Agriculture (FLAG) Guidance (2023 m.)
17
Lithuania National Inventory Document for 1990-2022) (2025).
Lithuania account for about 0,4% of all cultivated land and 8,6% of the area of
perennial grasslands converted into arable land.
17
The LULUCF sector emissions
calculated in scope 1 also include biogenic emissions resulting from decomposing
biomass (manure and plant residues in fields) and direct and indirect CO2 and N2O
emissions from soil. Biogenic emissions from biofuel combustion for heating (e.g.
firewood) are not typical and are not included. Indirect scope 3 biogenic emissions are
not included in the emissions accounting due to the lack of data outside the
organization's activities and in the supply chain.
Due to the update of the GHG calculation methodology, the 2022 indicators were
retrospectively recalculated. However, recalculating indicators older than two years
(<2022) in accordance with the new methodology would be inaccurate, as this requires
data that was not previously collected in the Group's companies or the relevant
business activities were not carried out. The base year (2019) set in the Group's
strategy cannot be retrospectively recalculated and used for comparing annual
emissions. All calculation updates made in 2023 and the approved audited
methodology are applied when calculating GHG emissions for 2024, therefore the
Group did not organize an additional GHG accounting audit for 2024.
Annual GHG emissions
In 2025, the Group did not initiate any changes that could significantly affect the
calculation of GHG emissions in 2024. The total and annual emissions for each
volume and yearly variance are presented below.
GHG
emissions, t
CO
2
e
2025
2025
(without
LULUCF)
2024
2024
(without
LULUCF)
Variance
2025/24
Variance
2025/24
(without
LULUCF)
Scope 1
79 378
74 857
182 233
83 409
-56%
-10%
Scope 2
4
4
4
4
0%
0%
Scope 3
4 399
4 399
1 521
1 521
+189%
+189%
Total*:
83 780
79 260
183 758
84 933
-54%
-7%
*
Calculated using the “market based method”, based on actual electricity purchases. When calculated using the “location
based method”, i.e. based on the country-specific nature of energy production, the Group’s total GHG emissions in 2025 would
be 85 929t CO2e, , with Scope 2 emissions amounting to 1,824 t CO2e and Scope 3 emissions amounting to 4,728 t CO2e.
Consolidated Management Report 2025
76
In 2025, the Group’s total operational carbon footprint decreased by 99,978 t CO2e, or
54% compared to 2024, with the largest reduction in Scope 1 emissions. It is important
to note that the most significant change in Scope 1 emissions is due to a one-time
GHG spike in 2024 a one-time GHG spike resulting from methodological accounting in
the LULUCF sector when calculating the annual change in farming practices on a
portion of agricultural land following the transition to partial conventional crop
production; in contrast, no significant changes in agricultural practices were
implemented in 2025. Scope 3 emissions are higher, totaling 2,878 t CO2e, or 189%
higher compared to 2024. This scope covers the 9 emission categories accounted for
by the Group listed above. The most significant increase in emissions is observed in
the following categories: (1) post-consumer management of packaging placed on the
market increased by 202%. This increase is due to higher sales volumes of single-use
plastic packaging in the mushroom cultivation sector; (2) although the total amount of
waste in 2025 was lower compared to 2024 (-12%), mixed packaging, other hazardous
waste, and textile waste were additionally included in the composition, resulting in
216% more emissions than in the previous year; (3) the inclusion of business travel by
car in the business travel accounting for the reporting period resulted in 62% more
emissions compared to the previous year, when only air travel was counted.
The Group’s GHG Scope 1 emissions
As the Group’s activities and value chain mainly include production processes in crop
production, livestock production, mushroom production and, from 2024, biomethane
production, the largest amount of the Group’s GHG emissions is concentrated in
Scope 1 - direct emissions, which include all sources controlled by the Group in
carrying out its activities. Below is a detailed list of Scope 1 emission sources, as well
as their percentages for each year, and the amount excluding the LULUCF sector.
18
Breakthrough Agenda Report – Agriculture, European Commission, 2024.
The distribution of GHG emissions in Scope 1 for 2025 reveals a marked change in the
LULUCF sector category: In 2025, this part accounts for just 5.7% (4,520 t CO₂e) of
total emissions, whereas in 2024 it reached as high as 54.2%. This significant
decrease was due to the fact that there were no major changes in agricultural
practices in 2025, unlike in 2024, when, in the fall of 2023 and part of 2024,
approximately 17,000 hectares of agricultural land was converted from organic to
regenerative conventional farming However, it is important to note the Group also
contributes to increasing soil organic carbon in regenerative conventional agricultural
areas by applying sustainable practices, enriching the soil with organic fertilizers and
organic matter (approximately 24 thousand tons in 2025) and therefore continuously
contributing to the increase of soil organic carbon and mineral nitrogen, which is an
important aspect of agricultural activities, improving soil fertility, structure, moisture
retention, and microbial activity. For example, some cereal crops are grown together
with cover crops (forage grasses), in order to enrich the soil with biological nitrogen
and organic matter, which, when slowly decomposed, provide food for soil biodiversity
and increase the amount of sequestered (retained in the soil) carbon.
In addition to the significant decrease in emissions in the LULUCF sector, other
significant emission sources mentioned in the Group and the European Commission
publication
18
are emissions from soil, methane (CH4) generated by cattle digestion
processes and the use of fertilizers, which are among the most important sources of
greenhouse gases in the agricultural sector.
Scope 1
emission
sources
2025
2025
(without
LULUCF)
2024
2024
(without
LULUCF)
2023
2023
(without
LULUCF)
Emissions
from soil
43,3%
45,9%
22,2%
48,6%
32,6%
34,5%
Cattle
digestion
processes
23,1%
24,5%
10,1%
22,0%
26,0%
27,5%
Fossil fuel
consumption
19,9%
21,1%
10,0%
21,9%
25,3%
26,7%
LULUCF
sector
5,7%
-
54,2%
-
5,4%
-
Manure
management
5,0%
5,3%
2,7%
5,9%
9,0%
9,5%
Refrigeration
gases
1,8%
1,9%
0,7%
1,4%
1,7%
1,8%
Biomethane
production
1,2%
1,2%
0,1%
0,2%
-
-
-15%
0%
-14%
-95%
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
2024 2025
Group's GHG scope 1 emissions, t CO
2
e
(compared to 2024, %)
Biomethane production
Refrigeration
LULUCF
Manure handling &
grazing
Fossil fuels usage
Enteric fermentation
Crop & feed production
Consolidated Management Report 2025
77
Emissions from soil account for 43,3% of the Group’s total emissions, or 45,9% when
considering emissions excluding the LULUCF sector. The Group is applying more
sustainable tillage methods (e.g. no-till technologies, extensive field grazing, long-term
and regenerative crop rotations) across all of its agricultural areas, and has also
abandoned more acidic land areas, which has allowed for a reduction in the use of
lime. However, the transition to conventional tillage of part of the agricultural areas and
the use of synthetic fertilizers increases emissions (around 18 t CO2e in this
category).
Cattle digestion processes and manure management account for 23,1% of all Scope 1
GHG emissions, or 24,5% when assessing the amount of emissions excluding the
LULUCF sector. The largest contributor to the amount of GHG generated in these
categories is methane (CH4), released during cattle digestion (18,338 t CO2e, or 82%
of all emissions in these categories). Also, methane released in barns, manure and
slurry management systems (3,980 t CO2e, or 18%). In 2025, the amounts of GHG
generated by these activities were lower compared to the previous year (921 t CO2e
less). Another emissions category – fossil fuel use – accounts for 19,9% of all Scope 1
emissions in 2024. The Group aims to continuously reduce the use of fossil fuels,
therefore closely related technological solutions, especially the use of electric and
biomethane-powered tractors in the fields, are of paramount importance. Although the
development of these technologies is paused from the 4th quarter of 2024, the Group's
tractors worked in the fields in 2025 and consumed about 1 t of biomethane – a
renewable fuel. The total amount of fossil fuel GHG emissions in 2025 amounted to
about 16 thousand t CO2e and is lower (about 2 thousand t CO2e) compared to the
previous year.
One of the smallest Scope 1 emission categories is gas used in refrigeration
equipment, accounting for 1.8% of total Scope 1 emissions. During the reporting
period, a slightly higher number of leaks and system refills were recorded in the
mushroom production sector and at other Group farms (a total of 1.4 t CO2e).
Also from 2024, the biomethane production process was included in the emissions
accounting, which reflects the distribution of emissions from the new segment.
Although it accounts for only 1,2% (918 t CO2e) of all Scope 1 GHG emissions, the
biomethane production activity saved about 2,6 thousand t CO2e in manure and
slurry management systems, as about 98 thousand t of the Group’s slurry was used
in biomethane production, which is integrated into the Group’s circular economy. Also,
29 thousand MWh of biomethane gas was produced and sold to the market, saving
about 20 thousand t CO2e of emissions for their buyers choosing a renewable fuel.
This amount is not deducted from the Group’s total GHG emissions to avoid double
counting of emissions.
The Group’s companies purchase and use only green electricity in their operations.
This decision allowed the Group-wide savings of 1,820 t CO2e in 2024, which would
be attributed to indirect Scope 2 emissions.
Emission intensity indicators
GHG emission intensity indicators are calculated by dividing the annual emissions
from various economic activity units. They show how much CO2e emissions are
emitted in the Group's activities, calculated per financial, production, cultivated land
and other activity units. When calculating emissions per 1 million EUR of revenue and
per 1 employee, all Group emissions in Scopes 1, 2 and 3 are included. When
calculating emissions per cattle and per ton of milk, per hectare and per ton of crop
production or per ton of mushroom production, only emissions in Scopes 1 and 2
assigned to the relevant activity segment - livestock farming, crop production or
mushroom cultivation are included.
Emissions, t CO
2
e
2025
2024
Variance
2025/24
t CO
2
e / 1 mln. EUR revenue
1 627,4
2 152,5
-24,4%
t CO
2
e / 1 employee
89,4
178,4
-49,9%
t CO
2
e / 1 cattle
3,3
3,5
-3,7%
t CO
2
e / t ECM milk**
0,782
0,784
-0,3%
t CO
2
e / ha
1,4
4,0
-64,0%
t CO
2
e / t crop production
0,37
1,2
-68,3%
t CO
2
e / t mushroom production
0,4
0,3
+21,3%
t CO
2
e / MJ biomethane produced
0,03
0,01
+216,9%
The emissions intensity indicator per employee decreased by 24% compared to 2024.
This was due to a decrease in total emissions by 54% and lower revenue by 40%.
The emissions intensity per employee decreased by 50% compared to 2024. This was
due to a 9% reduction in the number of employees, as well as a decrease in total
emissions. Although more synthetic fertilizers were used on regenerative and
conventional farming lands in 2025, increasing total emissions, a significant reduction
in emissions per hectare and per unit of crop production was nevertheless recorded.
This was because, unlike in 2024, there were no significant changes in operations in
the LULUCF sector in 2025. In particular, the emission intensity indicator per
megajoule of biomethane produced increased by as much as 216%. This increase was
driven by the expansion of biomethane production capacity during the reporting period,
which required significantly higher energy costs (571% more than in 2024). In addition,
as the volume of biomethane produced increased, the calculated GHG emissions
**
ECM (energy corrected milk) is a relative unit of milk measurement. Raw milk production is converted to the amount of
milk corrected to 4% fat and 3.3% protein.
Consolidated Management Report 2025
78
associated with evaporation during production and transportation increased
proportionally.
Emissions intensity in the livestock sector decreased by approximately 4% per head of
cattle and by 0.3% per ton of milk produced. These figures reflect an overall reduction
in emissions in the sector, as a larger volume of manure was used for biomethane
production (42% more than in 2024), thereby reducing the amount of GHG emissions
that would have been released due to manure management and evaporation processes.
Calculation methodology
Emission calculations and their results in this report are based on the latest GHG
20
Protocol and Intergovernmental Panel on Climate Change
21
(IPCC) methodologies,
including all GHGs generated in the activities: nitrogen dioxide (N
2
O), methane (CH
4
),
carbon dioxide (CO
2
) and gases used in refrigeration equipment.
Total emissions are calculated using the global warming potential (GWP) of a
greenhouse gas, which indicates the warming potential of one kilogram of the gas
compared to one kilogram of CO
2
over a period of one hundred years. The following
global warming potentials were used
22
:
− CO
2
– 1
− CH
4
(non-fossil) – 27
− N
2
O – 273
− HFC-32 – 771
− HFC-125 – 3740
− HFC-134a – 1526
− HFC-143a – 5810
− PFCs, SF6, NF3 gases are not permitted in activities of the Group.
Emissions were calculated using internal accounting data and emission factors from
the following sources: 2025 Lithuanian National GHG Inventory Report
23
, 2025 UK
Department for Environment, Food and Rural Affairs Report
24
.
20
GHG Protocol for Corporate Accounting and Reporting Standard; GHG Protocol Land Sector and Removals Guidance.
21
Intergovernmental Panel on Climate Change (IPCC), 2019 Guidelines for National Greenhouse Gas Inventories.
22
IPCC Sixth Assessment Report, Working Group I (2021); IPCC Global Warming Potential Values, Greenhouse gas protocol, 2024
23
Lithuania National Inventory Report (1990-2021) (2025)
24
Department for Environment, Food and Rural Affairs; DEFRA (2025). Government Conversion Factors for greenhouse gas (GHG)
reporting.
Consolidated Management Report 2025
79
6.3 Biodiversity and ecosystems
E4 Biodiversity and ecosystems
Operating in the agricultural sector, the Group has a direct impact on the environment,
living organisms, and ecosystems, while also playing an important role in their
preservation. The Group's activities are most closely associated with the key drivers of
biodiversity and ecosystem change, such as climate change, pollution, and the use of
land and freshwater resources.
The Group also identifies crop growing and livestock segments as agricultural activities
that may have a significant negative impact on vulnerable biodiversity areas. Given the
close interconnection of this topic with other environmental issues, the Group’s efforts
to preserve biodiversity and ecosystems are described in more detail not only in this
section but also throughout other Environment sections.
Material impacts, risks and opportunities and their interaction with strategy and
business model
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
IRO-1 Description of processes to identify and assess material biodiversity and
ecosystem-related impacts, risks and opportunities
To assess how the Group’s material Sustainability topics are related to the topic of
Biodiversity and Ecosystem, during the IRO assessment, impacts and/or opportunities
were evaluated based on whether the impact or opportunity is actual or potential,
positive or negative, along with a broader description of each IRO aspect. During the
assessment, the IRO aspects were also mapped according to their position within the
value chain, and links to the business model were evaluated. A more detailed
representation of the business model can be
found in section 5.6, Value chain table. A
detailed overview of these results is provided below:
Estimated impact period. Following the assessment, it was determined that the positive actual impact of organic farms on biodiversity and ecosystems, as well as the negative actual
impact of conventional farms on biodiversity and ecosystems, were classified as having an impact over the medium term (up to 5 years). Although AUGA group has been developing
organic farming since 2017 and has created a significant positive impact over the years, part of the Group’s crop growing and livestock activities are carried out using conventional
methods. To diversify risks and ensure stable income, the Group continuously monitors market conditions and retains the option to adjust the proportion of farming methods if the
market indicates opportunities for change.
Material topics for the
Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and business
model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into
the strategy and
business model
Biodiversity and ecosystem
Actual positive impact:
Positive impact of organic
farming on biodiversity and
ecosystems
Compliance with NATURA
25
,
GAAB
26
, and organic farming
standards contributes to the
preservation of biodiversity
and ecosystems.
•
•
•
•
•
Actual negative impact:
Negative impact of
conventional farming on
biodiversity and ecosystems
As some farms have
transitioned to conventional
farming, the use of plant
protection products and more
intensive use of land
resources may have a
negative impact on
ecosystems and biodiversity.
•
•
•
•
25
“Natura 2000” – a network of protected areas of European importance designed to conserve, maintain, and, where necessary, restore natural
habitat types, animal and plant species within the Community territory, State Service for Protected Areas, 2020
26
GAAB – requirements for good agricultural and environmental condition
Consolidated Management Report 2025
Position in the value chain. Following the assessment, both IRO aspects of this
material topic were attributed to the Group’s operational stage in the value chain. Both
IRO aspects are directly related to the production processes carried out by AUGA
group and result in both positive and negative actual impacts.
Link with the business strategy and business model. The IRO assessment determined
that the positive actual impact of organic farming on biodiversity and ecosystems, as
well as the negative actual impact of conventional farming, originates from the
business model. Since one of the core activities of AUGA group is crop growing, the
applied agricultural methods naturally affect biodiversity and ecosystems as a direct
consequence of business operations. The positive actual impact of organic farms on
biodiversity and ecosystems is also integrated into the Group’s strategy and
operational principles, as organic farming represents a strategic direction of AUGA
group. This approach aims not only to ensure more environmentally friendly production
but also to contribute to the preservation of biodiversity and ecosystems by
implementing goals related to these topics in its policies.
Compliance with Good Agricultural and Environmental Conditions (GAEC)
The Group actively contributes to the EU Green Deal, which is a core component of
the EU Common Agricultural Policy and is also integrated into Lithuania’s Strategic
Plan for Agriculture and Rural Development for 2023–2027. Therefore, in conducting
its agricultural activities, the Group adheres to four key Good Agricultural and
Environmental Conditions (GAEC) requirements
28
. These include actions aimed at
mitigating and adapting to climate change (GAEC 2), protecting water resources
(GAEC 4), improving and preserving soil condition (GAEC 5), and safeguarding
biodiversity (GAEC 9). Below is information on the importance of each GAEC
requirement and the total agricultural land area managed by the Group that contributes
to achieving these objectives.
IRO aspects - risks
Physical environmental risks associated with conventional agricultural activities that
have a negative impact on biodiversity and ecosystems have been highlighted in
relation to "Biodiversity and ecosystems" and the Group's identified significant
sustainability themes. These include ecosystem degradation, loss of soil fertility, loss
of species, and increased risk of pests and diseases to the main crops on which the
Group's activities depend. These changes may increase the need for artificial inputs
and the overall cost of operations. The following risks of climate change transformation
have also been identified: expanded compliance requirements for biodiversity and
ecosystems (risk of related penalties and litigation; changes in biodiversity protection
policies and compliance, etc.). All these risks were assessed according to the criteria
of certainty and magnitude of impact on the Group's income. The assessment found
that these listed risks were not prioritised and therefore these risks have not been
further assessed in detail using the steps of the LEAP
27
approach, nor are they subject
to additional monitoring and management in 2025.
GAEC
Goal
Importance
Group‘s
area (ha)
GAEC2
Wetland and
peatland
protection
Wetlands and peatlands are important
because they store organic carbon,
form microclimates, purify air and
water, and are a refuge for specific,
often rare plants and animals
595
GAEC4
Water body and
coastal
protection
Helps reduce water pollution, benefits
biodiversity by providing habitats for
flora and fauna
21
GAEC5
Soil
improvement
and erosion
reduction
Helps protect slopes from erosion
caused by agricultural activities,
prevents further loss of soil potential
165
GAEC9
Protection of
sensitive
perennial
grasslands
Ensures the maintenance of habitats
valuable for biodiversity, contributes
to the protection of bird nesting and
breeding sites, and improves water
and soil quality
50
Total:
831
Consolidated Management Report 2025
81
Biodiversity protection
To ensure the protection of biodiversity on the Group’s cultivated land, in 2025 an
Inventory was conducted to identify areas of high natural value used for farming and the
species found within them. AUGA group carries out agricultural activities on 103 hectares
of fields located within the European ecological network Natura 2000 – territories
designated for the protection of habitats or bird species. This area accounts for less than
1% of all land cultivated by the Group. On these lands, the Group is also committed, in
accordance with the Environmental Policy, to maintaining permanent grassland, limiting
the number of grazing livestock and maintaining the existing hydrological regime.
Natura 2000 is a network of protected areas of European importance, established to
conserve, maintain, and, where necessary, restore natural habitat types and species of
fauna and flora within the European Community territory. In Lithuania, these territories
cover approximately 13% of the country’s land area
19
. AUGA group does not operate in
areas where agricultural activities are strictly prohibited due to protection requirements.
The Group’s farmland within Natura 2000 mostly falls within areas subject to extensive
farming requirements – including limits on the number of grazing animals, maintenance of
the existing hydrological regime, mowing only during permitted times of the year, and
preservation of permanent grasslands and pastures.
To adapt farming practices in a way that avoids endangering habitat or species
distribution and to better preserve ecosystem diversity, the Group annually reviews
national data on protected territories.
19
Ministry of Environment of the Republic of Lithuania, 2025 m.
Cultivated land falling within "Natura 2000" territory (ha)
Region
Areas important
for habitat
protection in
2025
Areas important
for bird
protection in
2025
Total across
both areas
in 2025
Anykščiai district municipality
4
4
Jurbarkas district municipality
48
2
50
Kaišiadorys district municipality
7
7
Kalvarija municipality
5
5
Marijampolė district municipality
3
3
Mažeikiai district municipality
Panevėžys district municipality
1
1
Radviliškis district municipality
<1
<1
Šakiai district municipality
2
2
Šiauliai district municipality
1
1
Ukmergė district municipality
10
10
Utena district municipality
23
23
Total:
55
48
103
Consolidated Management Report 2025
82
Policies, objectives and actions related to biodiversity and ecosystems
E4-2 Policies related to biodiversity and ecosystems
E4-4 Targets related to biodiversity and ecosystems
E4-3 Actions and resources related to biodiversity and ecosystems
Biodiversity conservation is one of the environmental objectives of AUGA group, as set out in the Group’s Environmental Policy. This policy outlines the key practices applied in
production that help protect and enhance ecosystems – for example, regenerative crop rotation, the use of renewable resources, and compliance with GAEC and organic farming
requirements.
In 2024, the Group assessed how the actions and objectives set out in its Environmental Policy contribute to global and regional biodiversity goals – including the Kunming-Montreal
Global Biodiversity Framework
20
and the EU Biodiversity Strategy for 2030 Nature Restoration Plan
21
. The Group aims to ensure that its business model and activities align with these
international commitments and contribute to their implementation through practical agricultural solutions. The table below shows the revised compliance with these documents for
2025.
Targets of the Kunming-Montreal Global
Biodiversity Framework
The Group’s objectives and actions under the Environmental Policy
Group's compliance with the EU Nature
Recovery Plan in 2025
TARGET 7
Reduce pollution risks and the negative
impact of pollution from all sources
(a) by reducing excess nutrients lost to
the environment by at least half,
including through more efficient nutrient
cycling and use;
(b) by reducing the overall risk from
pesticides and highly hazardous
chemicals by at least half, including
through integrated pest management,
based on science, taking into account
food security and livelihoods.
▪ No chemical pesticides or other chemical plant protection products are used in the Group’s organic farms, and
fields are fertilized only with natural fertilizers. In conventional fields, natural plant protection methods are
prioritized, such as the selection of resistant species, crop rotation, and mechanical weed control.
▪ Where fertilizers are used, the Group seeks to minimize it’s runoff into water bodies by fertilizing only during
designated periods, maintaining buffer zones near water sources, and immediately incorporating organic
fertilizers into the soil.
▪ Based on soil tests conducted on part of the land, the use of mineral fertilizers is being optimized. The need for
fertilisers is gradually being reduced through crop rotation and an increase in the area of leguminous
herbaceous crops, which are able to fix nitrogen in the soil and carbon in the soil through their residues.
Reduce the risk and use of chemical
pesticides by 50% → more than half (53%) of
the Group's cultivated land is managed
according to the principles of organic farming
and is free of chemical pesticides
Use at least 20% less fertiliser
→ In the Group's fertiliser practices, organic
and ecological fertilisers accounted for 96% of
the total amount used
TARGET 10
Ensure sustainable management of
agriculture, by increasing biodiversity-
friendly practices. This includes
sustainable intensification,
agroecological, and innovative
approaches to enhance resilience,
efficiency, productivity, food security,
and biodiversity conservation.
▪ A long-term crop rotation plan is applied, involving at least four different crops over a seven-year period. This
improves soil quality and reduces the need for fertilizers.
▪ Precision fertilization is applied in those areas where soil tests have been carried out, to decrease the amount
of nitrogen and other minerals entering the soil annually. Manure is tested to determine accurate fertilization
norms for crops.
▪ Protective buffer zones are maintained and managed extensively along drainage ditches and water bodies.
▪ In fields with wetlands or peatlands, only min-till practices and/or extensive agricultural methods are applied.
▪ The goal is to allocate at least 30–50% of the rotation area to flowering crops that support pollinators, and to
cooperate with beekeepers by establishing mobile apiaries near blooming fields.
▪ During the winter season, at least 50% of land is kept covered with agricultural crops, cover crops, or crop
residues. This practice reduces soil erosion, enriches the soil with nutrients, increases microbial activity, and
boosts earthworm biomass.
Reversing the downward trend in pollinator
populations
→ Groups devote 30-50% of their rotation to
flowering plants and work with beekeepers
Adopt agroecological practices and
manage more than 25% of agricultural land
according to organic farming principles
→ more than half of the Group's farmland
(53%) is managed according to organic
farming principles.
20
The Kunming-Montreal Global Biodiversity Framework has 23 action-oriented global targets for urgent action over the decade to 2030
21
EU Biodiversity Strategy for 2030 Nature Restoration Plan
Consolidated Management Report 2025
83
▪ To prevent eutrophication* and the degradation of natural aquatic ecosystems, the choice of cover crops is
based on the specific crop rotation plan and soil conditions. Cover crop mixtures consist of at least three
different plant species capable of absorbing excess nitrogen.
▪ Some grains are grown together with under sown forage grasses, enriching the soil with biological nitrogen
and organic matter that decomposes slowly, providing nourishment for soil biodiversity and increasing carbon
sequestration.
▪ The roots of solitary trees growing in fields are protected within the perimeter of their canopies**, as such trees
serve as ecological stepping stones between larger suitable habitats. Insects or fungal spores residing in these
areas may later spread to other regions.
TARGET 16
Encourage sustainable consumption
through supportive policies to halve food
waste, reduce overconsumption, and
minimize waste generation.
▪ The Company aims to manage as much of its generated waste as possible following the principles of reduce,
reuse, and recycle.
▪ Employee competence and a responsible approach to environmental protection are continuously fostered.
▪ A closed-loop farming model is applied to create synergies between different agricultural segments and enable
the reuse of organic waste. Forage crops grown in the crop production segment are used as feed for livestock,
while straw is used for mushroom compost production. Organic waste generated in the dairy segment
(manure) is used as fertilizer in crop growing and for compost in mushroom growing. Since 2024, manure has
also been used for biomethane production, while the by-product of this process - digestate - is utilized for field
fertilization.
TARGET 20
Strengthen capacity-building and
development, access to and transfer of
technology, and promote development
of and access to innovation and
technical and scientific cooperation.
▪ Efforts are made to apply min-till technology as widely as possible, where only the topsoil layer is cultivated.
This helps protect the soil from erosion, conserves the fertile soil layer and its microorganisms, and reduces
fossil fuel consumption.
▪ Actions are taken to combat climate change, which is devastating to biodiversity, by developing and
implementing technologies that reduce GHG emissions. More details are available in the section Technology
development.
TARGET 21
Ensure accessible data and knowledge
for effective biodiversity governance,
management, communication,
education, and research.
▪ Activities are carried out in compliance with all mandatory environmental protection legislation.
▪ Cooperation is maintained on environmental protection issues with business partners, national institutions, and
agencies.
▪ The Company is committed to participating in research, conservation, and educational activities. Collaboration
is established with the VDU Agricultural Academy and the LSMU Veterinary Academy, providing opportunities
for students and researchers to intern at the Company’s farms and deepen their practical and theoretical
knowledge.
Effective management of all protected areas
→ The Group aims to ensure the conservation
and status of habitats and species in
accordance with NATURA and GAEC
requirements.
* Eutrophication is an increase in the biological productivity of a body of water due to an increase in nutrients (nitrogen and phosphorus).
** Tree protection zone - an area covering the projection of the crown onto the ground, where the roots and crown of a tree are protected.
Consolidated Management Report 2025
84
6.4 Circular economy (reduce, reuse, recycle)
E5 Resource use and circular economy
The circular economy is a model aimed at preserving the value of materials and resources for as long as possible, reducing waste and environmental impact throughout the production
and consumption cycle. AUGA group applies these principles to reduce material and energy consumption, air and water pollution, and the impact on biodiversity. The Group also
strives to ensure that resource use is as environmentally beneficial as possible - resource extraction, processing, and waste management are based on sustainability principles.
Circular economy principles are integrated into the Group’s strategy (more on this in section 1.4 Strategy) and have a direct impact on the business model.
Material impacts, risks and opportunities and their interaction with strategy and business model
IRO-1 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities
SBM-3 Significant impacts, risks and opportunities and their interaction with strategy and business model
To assess how the Group's material Sustainability topics are related to the topic of Resource Use and Circular Economy, during the IRO assessment, the impacts and/or opportunities
were evaluated based on whether the impact or opportunity is actual or potential, positive or negative, along with a more detailed description of each IRO aspect. During the assessment,
the IRO aspects were also highlighted according to their position in the value chain, and the links to the business model were assessed — a more detailed depiction of which can be
found in section 5.6, in the value chain table. A more detailed overview of these results is provided below:
Material topics
for the Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and
business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into the
strategy and
business model
Resource use
and circular
economy
Actual positive impact:
Circular economy and resource
efficiency
Resources are reused within the circular cycle, thereby
conserving them and contributing to a more sustainable
environment.
•
•
•
•
•
•
•
Actual opportunity: Integration
of biomethane production into
the circular economy
The integration of biomethane into the circular economy
provides an opportunity to efficiently utilize secondary raw
materials from livestock farming activities.
•
•
•
•
•
•
•
Actual negative impact: Waste
generation within the Group’s
operations
Waste generated during operations, if not properly managed or
recycled, can have a negative impact on the environment and
health.
•
•
•
•
Estimated impact/opportunity period. During the IRO assessment, it was determined
that circular economy and resource efficiency, biomethane production integration into
the circular economy, and waste generation in operations are classified as having a
long-term impact (more than 5 years). Operating in the agricultural sector, the Group
inevitably generates waste, which can create a long-term negative impact on the
environment, such as manure from livestock farming activities. To reduce this impact,
AUGA group has been developing and continuously improving its circular economy
model for several years. This model ensures the efficient reuse of waste, or in other
words, secondary raw materials, and their reintegration into the production cycle.
Since 2024, the Group has integrated biomethane production into this model, which
not only complemented it seamlessly but also became a long-term actual opportunity
due to its environmental and economic value to the Group. Therefore, both the circular
economy and resource efficiency, as well as the integration of biomethane production
into the circular economy, reflect the Group’s long-term commitment to sustainable
operations.
Place in the value chain. The assessment showed that the aspects of circular
economy and resource efficiency, as well as biomethane production and its integration
into the circular economy, span all parts of the value chain – upstream, the Group’s
operations, and downstream. The principles of circular economy are applied across
Consolidated Management Report 2025
85
AUGA group’s crop growing, livestock, and mushroom growing segments, which are
directly linked to production processes. The Group produces biomethane not only from
manure generated in its own farms but also purchases it from external suppliers. The
Group produces biogas using its partners' biogas infrastructure and then purifies the
biogas produced to biomethane using its own infrastructure. The resulting green gas is
sold on the market. In this way, circular economy processes and biomethane
production closely connect all parts of the value chain by ensuring efficient resource
use, reducing environmental pollution, and generating financial value. Meanwhile,
waste generation in operations is assigned only to the middle part of the value chain,
as this waste is produced directly within AUGA group’s own production activities and
does not extend to the upstream or downstream parts of the chain.
Link to the business strategy and business model.
The assessment found that the
circular economy and resource conservation and the integration of biomethane
production into the circular economy arise directly from the AUGA group business
model, as the Group, operating in the agricultural sector, seeks to effectively manage
the inevitably generated by-products and waste. The impact and implementation of
these aspects affect the business model, as the application of the principles of the
circular economy and the production of biomethane from secondary raw materials
allows for the optimization of resource use and generates additional income. Both of
these aspects are integrated into the Group's long-term strategy and operating
principles, as sustainability and reducing environmental impact are strategic objectives
of the Group's activities. Waste generation in the activities also arises directly from the
Group's business model, as waste generation is an inevitable process due to the
specifics of agriculture. This aspect of IRO directly affects the business model, as the
Group incurs financial costs for proper waste management and utilization.
IRO aspects -risks
The following two related risks were identified for the topic “Resource use and circular
economy” and the Group’s identified significant sustainability topics: financial impact
related to resource inputs and outputs (variability of resource availability; increased
raw material prices; higher waste management and infrastructure costs, etc.), financial
impact of the transition to a circular economy (higher operating costs due to significant
investments in new technologies and infrastructure; costs due to supply chain
disruptions related to changes in the availability of key natural resources; risks related
to environmental factors affecting the availability of resources, etc.). These risks were
assessed according to the criteria of probability and impact size related to the Group’s
profit. During the assessment, it was determined that in 2025 these risks are not
classified as priority, therefore their additional monitoring or management in 2025 is
not expected.
Policies and actions related to resource use and circular economy
E5-1 Policies related to resource use and circular economy
E5-2 Actions and resources related to resource use and circular economy
The Group has an Environmental policy, which defines and serves as the basis for
managing the topic of Resource use and circular economy. The policy applies across
the entire Group and is applicable to all employees. The accompanying table presents
the Environmental policy, its target, and the main actions taken during the reporting
period. It is important to note that all newly hired employees in 2025 250 were
introduced to the Environmental policy, and no violations related to this policy were
recorded.
Material
topic
Actual or potential
impact and
opportunities
Policy
applied by
the Group
Policy target
Key actions in 2025 and monitoring results
Resource
use and
circular
economy
Actual positive impact:
Circular economy and
resource efficiency
Environmental
policy
To develop a closed-loop
organic farming model.
2025 through the implementation of the Circular Cycle model:
Around 4 thousand tonnes of mushroom compost and 178 thousand tonnes of organic fertilisers were used
for crop fertilisation; around 100 thousand tonnes of cattle slurry and manure were used for biomethane
production, while 76 thousand tonnes of digestate – a by-product of biomethane production – were applied
to fertilise fields.
69,000 t of feed (grass, silage, haylage, hay, grain feed) were produced for livestock farming
Approximately 1,600 tonnes of straw and 5,400 tonnes of slurry from crop and livestock farms, 935 tonnes
of digestate from organic farms and 142 tonnes of separator (dry matter – a digestate by-product) were
used to produce compost.
Actual opportunity:
Integration of
biomethane production
into the circular
economy
Waste
Actual negative
impact: Waste
generation within the
Group’s operations
Environmental
policy
Reduce the amount of waste
generated in operations, and,
where waste reduction is not
possible, reuse the product as
much as possible before it
becomes waste.
Less waste was accounted for (61 tonnes or 12% less).
Consolidated Management Report 2025
Resource use and circular economy
E5-4 Resource inflows
E5-5 Resource outflows
The Group’s operations are broad and complex – they encompass five different
segments, with
part of the farming activities carried out under both organic and
conventional principles. The Group's business model and the related inputs and
outputs of the value chain are described 1.5.5 Group’s Supply Chain. At present, the
Group has not yet developed an expanded list of inflows and outflows or a
methodology for their accounting at the Group level that would meet ESRS disclosure
requirements.
Nevertheless, in the 2025 Sustainable Business Report, as in previous years, the
Group presents GHG emission calculations and other relevant information related to
key inflows and outflows. Water consumption and its comparison with previous periods
are detailed in the section Water below. Direct and indirect energy use (including
natural gas, liquefied gas, petrol, diesel and diesel for drying purposes) is covered in
the section Direct and indirect energy consumption. The 2025 report also provides
data on outflows generated during operations – including hazardous waste (such as
tires, asbestos, oil, and batteries) and other waste types (such as plastic, municipal
waste, metal, glass, paper, wood, electronics, and organic waste). These are
presented in the section Waste. Meanwhile, outflows related to the circular economy
include the reuse of secondary raw materials within the circular cycle. Livestock
manure and mushroom compost are used as crop fertilisers, and harvested crops are
used as feed ingredients. Straw from crop production, combined with manure, is used
in mushroom farming. Additionally, poultry and cattle manure are processed into
biomethane. The by-product of this process - digestate - is returned to the fields as
organic fertiliser. In this way, the Group’s business segments are interconnected within
a closed circular economy cycle, where resources are used as efficiently as possible.
Information on the quantities of secondary raw materials used in the Group’s circular
cycle can be found in the section 6.4 Circular economy.
Water
Consumed
amount, m³
2025
2024
2023
2022
2021
Water
365,052
355,087
331,839
300,782
368,867
AUGA group, operating in the agricultural sector, consumes a significant amount of
water each year, which is required for crop and mushroom production, as well as for
watering livestock. Water used for production processes is sourced either from wells
located on the farms or centralised municipality water supplies, and consumption is
measured using water meters. It is also important to note that the Group monitors the
environmental impact of water consumption through associated CO₂e emissions.
However, water consumption outside the Group’s operational boundaries and within
the supply chain is not currently tracked due to a lack of available data. At the moment
AUGA group is not conducting Scope 3 emissions accounting, which would otherwise
allow modelling of water consumption beyond the Group’s direct operations (i.e., in the
supply chain) because of lack of data.
In 2025, AUGA group consumed 9,965 m³ of water, which is 2.8% more than in 2024.
The main reason for this increase (continued on from 2024) was the higher water
demand for the maintenance of conventional crops. Unlike organic fields, where water
spraying practices are not applied, conventional crop cultivation requires water use
several times per season. In 2023, water consumption was lower because the
transition to conventional crop farming occurred in the second half of the year.
In the mushroom growing segment, water reuse practices are applied. During
mushroom cultivation, the water used for compost production is reused several times.
The excess unabsorbed water is collected and reused until nearly all the water is
utilized in the mushroom compost process.
AUGA group does not have an approved water reduction or reclaiming policy across
the companies of the Group. Each company in the AUGA group independently
implements water saving and reuse initiatives based on the nature of its activities.
Water is not used from areas that face water shortages.
Consolidated Management Report 2025
87
Waste
Waste, t
2025
2024
2023
2022
2021
Plastic
211.3
294.4
366.9
399.1
472.0
Municipality waste
24.7
26.0
89.8
325.9
349.0
Metal
11.2
89.0
137.8
121.6
280.4
Glass
0.0
0.0
1.5
0.0
0.0
Paper
45.8
41.0
57.6
78.6
74.8
Tires*
0.0
2.8
42.8
27.2
78.5
Asbestos*
0.0
0.0
2.8
23.4
42.7
Wood
0.0
0.0
32.6
10.3
39.2
Oil*
6.6
7.3
11.9
9
15.2
Batteries*
2.2
1.9
3.2
2.9
1.2
Electronics
0.2
0.06
0.6
1.2
0.9
Organic waste
0.0
0.0
0.0
0.0
0.3
Other waste**
134.0
34.9
97.7
66.3
25.4
Total:
436.0
497.4
845.2
1,065.5
1,379.6
* Household hazardous waste, according to the Waste Management Law of the Republic of Lithuania, which accounts for 2.4% of all waste.
** Other waste transferred to waste management companies but not falling into the categories listed above. Other types of waste include mixed waste, other hazardous waste and textile waste.
Waste generated in the Group’s operations is managed according to the principles of reduce, reuse, and recycle. To ensure proper waste management control, the Group applies a
waste generation, storage, and disposal procedure implemented across all of its operational companies. Waste is sorted at the company level, tracked using the GPAIS system, and
handed over only to licensed waste management service providers. To implement circular economy principles within its operations, the Group's companies compost generated organic
waste and reuse it. As a result, for the fourth consecutive year, 100% of organic waste from the Group’s activities has been reused.
In 2025, the Group recorded 61.4 tonnes (or 12%) less waste compared to the previous year. The largest decrease (or 100%) was recorded in the category of waste tyres, as no such
waste was generated by the company's activities during the reporting period. The largest increase (or 284 %) was recorded in the category of other waste, due to the inclusion of
mixed packaging (58.5 t), other hazardous waste (such as packaging containing or contaminated with residues of hazardous chemicals; oil filters, etc.) (3.9 t) and textile waste (0.9 t),
which does not fall under the other categories listed in the table.
Consolidated Management Report 2025
95
Our Activities and Achievements
Accidents:
Per working hours:
Employees taking part in share option
programme:
0
New participants:
0
AUGA group’s
repeatedly certified by a standard
according to regenerative agriculture
requirements
Extended
certificates of AUGA group companies
Extended
Certificates of Grain LT and AUGA Trade
Certified AUGA Trade and extended Grain LT by
standard
Consolidated Management Report 2025
96
Social responsibility is an integral part of the Group’s sustainable operations. Starting this year, AUGA group, in accordance with ESRS requirements, discloses in its report the material
topics identified through the IRO assessment and reviews the underlying causes, objectives, targets, and actions related to their impact for the year 2025. Within the scope of social
responsibility, the material topics for the Group include working conditions and remuneration, occupational health and safety, human rights of employees, community relations, and
consumers and end products. These topics will be discussed in more detail in the Social Responsibility section.
7.1 Own Workforce
S1- Own workforce
Material impacts, risks and opportunities and their interaction with strategy and business model
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
To assess how the Group’s material sustainability topics relate to the Own Workforce topic, during the IRO assessment, impacts and/or opportunities were evaluated based on whether
they are actual or potential, positive or negative. A broader description of each IRO aspect was also provided. As part of the assessment, IRO aspects were mapped to their position in
the value chain, and their connection to the business model was evaluated. A more detailed representation of this can be found in the section 5.6 Significant Impacts, Risks and
Opportunities. A detailed overview of these results is presented below:
Material topics for
the Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and
business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into
the strategy and
business model
Working
conditions and
remuneration
Positive actual impact:
Creation of skilled and unskilled
job opportunities in the regions
Seasonal and farm work opportunities in the regions
provide additional income, economic stability and
strengthen local communities.
•
•
•
Positive actual impact:
Maintaining employee motivation
during the restructuring process
In 2025, the Group provided employees with the
opportunity to retain stock options that can be exercised
after the restructuring period. The stock option
programme enables employees to receive, free of
charge, a corresponding number of shares, which may
be exercised three years after the grant date. This
programme is designed to enhance employee
motivation and loyalty.
•
•
•
•
•
Occupational
health and safety
Negative actual impact:
Working with chemicals and
machinery
The Group's operations are subject to certain
hazardous working conditions related to chemicals and
other hazardous substances, the use of which is
increasing in conventional crop production.
•
•
•
Ensuring
employees' human
rights
Positive actual impact:
Assurance of human rights
Ensuring respect for human rights increases employee
confidence, motivation and loyalty, which improves the
Company's reputation and reduces legal risks.
•
•
•
•
•
•
•
Positive actual impact:
Data protection
The Group implements a Privacy Policy that ensures
the protection and processing of personal data and the
free flow of personal data in accordance with the
requirements of the law.
•
•
•
•
•
•
•
Consolidated Management Report 2025
98
Estimated period. The creation of skilled and unskilled job opportunities in regions, the
assurance of human rights, and data protection have, after the assessment, been
classified as having a positive long-term impact (more than 5 years). This evaluation is
based on the fact that the Group will continue to operate across a broad geographic
area (in various regions of Lithuania), and its operations will require a wide range of
professionals and workers (including permanent employees under employment
contracts and seasonal workers engaged through the receipt-based system). For this
reason, the Group will continue its commitment to ensuring the protection of
employees' human rights and data, in accordance with legal requirements and internal
policies. Additionally, in 2025, the Group provided employees with the opportunity to
retain stock options that can be exercised after the restructuring period. The stock
option programme enables employees to receive, free of charge, a corresponding
number of shares, which may be exercised three years after the grant date. This
measure is assessed as an IRO aspect creating a positive actual impact, contributing
to increased employee engagement, the strengthening of long-term relationship with
the organization, and the ensuring of social stability in the context of restructuring, and
is therefore attributed to medium-term impact. The IRO aspect – working with
chemicals and machinery – and its resulting negative impact are considered relevant
in the medium term (up to 5 years). Although the Group currently partially operates
under conventional farming methods in both crop growing and livestock segments and
this is an ongoing year-round process, to diversify risks and stabilize income sources,
the Group retains the possibility of adjusting the proportions of its farming methods or
fully returning to organic farming if market signals show favorable conditions for
business growth.
Position in the value chain
. The assessment showed that the assurance of human
rights and data protection has an impact across all stages of the value chain:
upstream, the Group’s operations, and downstream. The importance of these aspects
begins with relationships with external raw material suppliers, encompasses the
Group’s internal operations – where employees form the backbone of all AUGA group
activities - and extends to the downstream stage due to the involvement of various
external stakeholders, such as shareholders, consumers, and others. The topics
identified as material to the Group - working conditions and remuneration, occupational
health and safety – are positioned within the middle of the value chain, i.e., the
Group’s own operations. Since the core of these topics is the Group’s employees, the
assessment clearly indicates that these issues are concentrated within AUGA group’s
internal activities and do not have any notable impact (positive or negative) on external
stakeholders in either the upstream or downstream parts of the chain.
Link to the business model and strategy
. The IRO assessment identified that the
aspects of assurance of human rights, data protection and employee motivation
support measures, including the stock option programme, originate directly from the
business model, affect its functioning and are integrated into the Group’s strategy and
operational principles. This reflects the Group’s long-standing commitment to building
trust, ensuring a safe working environment for employees and maintaining a strong
reputation among stakeholders. As these aspects are closely tied to the Group’s core
activities and embedded in its strategic directions, the assurance of human rights
and
data protection is clearly defined in the Group’s internal policies (further details are
provided below). The objectives and implementation of the share option programme
are described in more detail in Section 3. Governance Report. The other two aspects –
work involving chemicals and machinery, and the creation of skilled and unskilled job
opportunities in regions – also stem from the Group’s business model. This is due to
the specific nature of agricultural operations, the need for diverse employee
competencies, and the geographical spread of activities. Agriculture inherently
involves the use of heavy machinery, while regenerative conventional farming often
requires the use of chemical plant protection products.
IRO aspects – risks
In relation to the topic Own workforce and the Group’s identified material sustainability
topics, the following related risks were identified: shortage of human resources, lack of
gender and age diversity, risk of insufficient employee remuneration, risk related to
insufficient employee training and development, work-related injuries and illnesses,
high wage disparity, employee complaints and significant impact on human rights,
implementation of occupational health and safety management systems. All these
risks were assessed based on the criteria of likelihood and potential impact on the
Group’s profit. The assessment revealed that in 2025 these risks were not classified as
priority risks, and therefore no additional monitoring or management measures were
foreseen for 2025.
Targets related to managing material negative impacts
S1-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
The Group’s employees belong to one of the most important stakeholder categories,
and considering the context of restructuring, it is especially important for the Group to
ensure the protection of their interests. However, at present, AUGA group has not
defined any additional specific targets related to the workforce topic and will focus on
fulfilling existing commitments to employees. The Group will continue to implement the
goals outlined in its policies related to human rights, health and safety, and other
relevant areas, but will not pursue specific progress indicators. Once the economic
situation within the Group stabilizes, AUGA group will be ready to assess the potential
for setting new progress targets and the methods for achieving them.
Consolidated Management Report 2025
98
Policies related to own workforce
S1-1 Policies related to own workforce
S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness
of those actions
The Group has several policies that define and implement the theme of its workforce. All policies are valid Group-wide and apply to all employees. The table below presents a list of
policies and their objectives, as well as the main actions taken during the reporting period.
Material topic
Actual or potential impact
and opportunities
Policy applied by
the Group
Policy target
Key actions in 2025 and monitoring results
Working
conditions and
remuneration
Positive actual impact:
Creation of skilled and
unskilled job opportunities
in the regions
Remuneration
policy
Ensure fair, transparent and objective remuneration
setting and adjustments based on employees'
competencies and job responsibilities. Define and
review remuneration scales, maintaining a clear and
consistent framework across the Group.
All newly hired employees (250) were introduced to the applicable Remuneration
policy.
The remuneration budget was reviewed and approved by the members of the
AUGA group Board.
No violations related to the remuneration topic were identified in 2025.
Positive actual impact:
Maintaining employee
motivation during the
restructuring process
Option granting
procedures and
rules for the grant
of shares
To detail the process of granting shares and to
implement the allocation of options and shares.
In 2025, the option programme was not implemented due to the restructuring
process.
Occupational
health and safety
Negative actual impact:
Working with chemicals
and machinery
Occupational
health and safety
policy,
Code of business
ethics
To identify hazards and risks present in the
Company and those that employees may
encounter, as well as to specify the measures taken
to minimize the number of accidents.
Regular occupational health and safety audits were conducted across the Group,
ensured by qualified external consultants.
In 2025, the Group organized health and safety training sessions for employees in
production units, including training on working with chemicals and machinery.
(See more in topic Health, Safety and Skills Development).
The number of workplace accidents increased from 7 in 2024 to 13 in 2025. No
penalties were issued for occupational safety violations.
Ensuring
employees'
human rights
Positive actual impact:
Assurance of human rights
Policy on human
rights, non-
discrimination,
child labour and
forced labour
To establish the principles for promoting,
implementing, and monitoring human rights, as well
as the main measures for their implementation
within the Group.
All newly hired employees (250) were introduced to the Group’s applicable
Human Rights, non-discrimination, child labour and forced labour policy.
Opportunities were made available to report possible breaches of the policy. No
complaints were received in 2025 regarding human rights assurances.
Positive actual impact:
Data protection
Personal data
management
rules
To ensure the protection of personal data of private
individuals working within the Group.
All newly hired employees (250) were introduced to the data protection rules.
No breaches related to personal data protection were identified in 2025.
Consolidated Management Report 2025
99
Information of Group employees
S1-6 Characteristics of the undertaking's employees
The following tables show data for the AUGA group as of the end of the reporting period. All AUGA group activities are carried out in one region – Lithuania.
Data about Group employees is collected from the official payroll calculation and employee accounting system, which contains all information about hired and departed employees.
The report presents data based on the last day of 2025 (December 31). The total number of employees includes individuals on childcare leave (in 2025, there were 19 such
employees). It is important to mention that the Group operates in the agricultural sector, which has seasonal activities. Therefore, every year, AUGA group hires seasonal workers who
provide services such as harvesting, peeling, drying, and measurement. The Group pay such workers for their services according to payment receipts. At the end of the year, these
workers are not included in the final number of employees. In 2025, during the season, the Group hired additional 97 (63 women and 34 men) seasonal workers who provided the
before mentioned agricultural services. This compares to 387 seasonal workers hired in 2024.
In 2025, the number of employees at AUGA group decreased by 9%, while employee
turnover increased by 26.45% compared to 2024. These changes are related to
strategic decisions aimed at increasing efficiency and optimizing the Group’s
operations, including business administration. As a result, the total number of
employees decreased.
Despite these changes and the restructuring procedures of some Group companies
that began in 2024, AUGA group remains committed to its employees – focusing on
their well-being, working conditions, and striving to be a reliable employer in this new
business phase. The Group is commited to implementing changes responsibly,
ensuring that employee rights are not violated.
Collective Agreements
S1-8 Collective bargaining coverage and social dialogue
In 2025 AUGA group did not conclude any collective agreements with employees
(0%). Employees are not prohibited from taking the initiative to create employee
associations defined in the Labour Code or implementing other social partnerships, as
far as the relations between the employer and employees are concerned or
conducting collective negotiations. The Group, in accordance with Human Rights, Non-
Discrimination, Children and Forced Labour Policy, does not support disciplinary or
discriminatory actions against employees, who choose to join associations peacefully
and lawfully. According to the guidelines set out in the policy, employees of the Group
are prohibited from using any form of intimidation to prevent other employees from
exercising their right to join or not to join any association.
Employees and diversity
2025
2024
2023
Category
Measurement
Total
Women
Men
Total
Women
Men
Total
Women
Men
Total:
Number
937
389
548
1,030
433
597
1,191
514
677
%
42.0
58.0
42.0
58.0
43.2
56.8
By employment
type
Permanent employees
Number
936
388
548
1,029
432
597
1,191
514
677
Temporary employees
Number
1
1
0
1
1
0
0
0
0
Full-time employees
Number
916
380
536
1,007
423
584
1,169
502
667
Part-time employees
Number
21
9
12
23
10
13
22
12
10
Working under service contracts
Number
2
1
1
2
1
1
2
1
1
Employee turnover
2025
2024
2023
Measurement
Total
Women
Men
Total
Women
Men
Total
Women
Men
Total:
Number
331
155
176
494
263
231
410
216
194
%
35.3
39.8
45.2
48.0
60.7
53.3
34.4
42.0
28.7
Consolidated Management Report 2025
71
Diversity metric
S1-9 Diversity metrics
S1-12 Persons with disabilities
The Group does not discriminate in any way based on gender, health or personal characteristics, and provides equal employment and career opportunities for all. At the end of 2025,
the Group had 19 employees with partial working capacity, representing 2.03% of the total number of employees. In terms of age category, the largest group of employees in 2025 has
shifted to 50 years and over. The table does not include members of the Management Board. Their age distribution is as follows: 30-50 age group - 2 members or 40%, over 50 - 3
members or 60%. The overall table does not include the gender distribution of the Board members. 5 out of 5 Board members (100%) are male.
Social protection
S1-11 Social protection
Social protection is one of the key factors ensuring employee well-being, safety, and social stability. AUGA group strives to be a reliable and responsible employer; therefore, social
protection guarantees for employees of the Group's companies are ensured in accordance with the national legislation of the Republic of Lithuania. Below is detailed information on
the main areas of social protection in which the Group ensures employee rights and protection according to the standards established by national laws.
Sickness
Unemployment starting from
when the own worker is working
for the undertaking
Employment injury and acquired
disability
Parental leave
Retirement
All employees of the Group
according to national laws.
All employees of the Group
according to national laws..*
All employees of the Group
according to national laws. **
All employees of the Group
according to national laws.
All employees of the Group
according to national laws.***
All AUGA group activities are carried out in one region, Lithuania, therefore the data are not broken down by country or geographical regions.
1
This is not applicable when the employment contract is terminated at the employee's initiative or as a result of breaches of work rules (according to Labor Law)
2
In the event of accidents, employees are covered by supplementary accident insurance, which is not compulsory for the employer.
3
In Lithuania employees have a right to choose an optional additional benefit related to voluntary contributions to employee's pension fund
Employees and diversity
2025
2024
2023
Category
Measurement
Total
Women
Men
Total
Women
Men
Total
Women
Men
By age
Under 30 years old
Number
112
51
61
124
62
62
143
71
72
Share, %
12
5.0
7.0
12
6.0
6.0
12
6.0
6.0
30-50 years old
Number
400
171
229
459
190
269
538
231
307
Share, %
43
18
24
45
18.0
26.0
45.2
19.4
25.8
Over 50 years old
Number
425
167
258
447
181
266
510
212
298
Share, %
45
18
28
43
18.0
26.0
42.8
17.8
25.0
By position
Workers and specialists
Number
879
375
504
967
417
550
1,120
494
626
Distribution, %
42.7
57.3
43.1
56.9
44.1
55.9
Management
Number
58
14
44
63
16
47
71
20
51
Distribution, %
24.1
75.9
25.4
74.6
28.2
71.8
Consolidated Management Report 2025
102
Health, Safety and Skills Development
S1-13 Training and skills development metrics
S1-14 Health and safety metrics
AUGA group considers it extremely important for the Group to ensure a safe working
environment for its employees. Employee safety is seen as one of the top priorities in
all operations of AUGA group. The Group has an Occupational Health and Safety
Policy, which applies to all (100%) AUGA group employees. Under this policy, the
Group continuously strives to improve the working environment for its employees, the
rules for safety at work and their implementation mechanisms. The
Occupational
Health and Safety Policy is published on the AUGA group website.
Although the Group does not have occupational health and safety management
system, at least once a year, the Group conducts periodic work safety and health
audits. The process is overseen by qualified external consultants from two companies
that specialise in work safety matters. They are thus responsible for training
employees, preparing, revising, and improving job instructions, investigating accidents
at work and preparing their prevention plans, and making suggestions for improving
general work safety. Companies of the Group are periodically inspected by the State
Labour Inspectorate. During the reporting year, no fines were received for work safety
violations and no significant non-compliances were recorded.
AUGA group operates in the agricultural sector, where manual work is common. Each
employee working in the Group is provided with safety and health instructions
specifically suited to their duties, which detail the main possible risks in the workplace
and explain how to avoid them. All employees, when they start working for the Group,
are required to familiarise themselves with these instructions and periodically updated
that knowledge. In 2025, the Group registered 13 accidents, in which workers suffered
minor injuries. As a result of work-related injuries, the Group's employees missed a
total of 820 working days in 2025. All the Group employees working under full-time,
part-time and service contracts are included in the number of accidents. No workplace
accidents were observed in 2025 among seasonal workers, who work on the basis of
payment receipts. In 2025, no workplace deaths were recorded.
Health and safety training is organised in the AUGA group's production units according
to training programmes and schedules. In 2025, the training covered topics
corresponding to the different production activities and the specific needs of
employees.
In 2025, over 215 employees received Fire Safety training, while close to 400
employees received training in Hazardous Operations, which covers manual handling;
noise at work; hydraulic pallet trucks; hazardous and toxic chemicals; mushroom
picking trolleys/platforms; and livestock handling. Twelve workers were certified as
drivers of electric forklifts and trolleys, and around 300 workers were certified in
hygiene skills.
Remuneration
S1-16 Compensation metrics (pay gap and total compensation)
Employee well-being is an important objective of the Group, which is ensured by
applying a fair and transparent Remuneration Policy. It provides for the distribution of
employees by position, specifies the forms of payment and salary ranges for each
position, the calculation of salary and its adjustment in case of deviations from normal
working conditions, and provides the grounds for granting additional payment.
AUGA group implements a Fair and Transparent Remuneration Policy, which
establishes salary ranges, calculation methods, and adjustment principles.
Additionally, it utilizes the KORN FERRY remuneration data analysis platform to track
market trends.
In 2025, the median ratio of the CEO's salary to the employee's salary was 5.24, up
30% from the previous year, when the ratio was 4. In 2025, an additional one- time
bonus was paid to the CEO, which resulted in a change in the average monthly
remuneration to the higher side. The base salary of the CEO remained unchanged in
2025 and the same as in 2024. In 2025, the remuneration of the Group's employees
was reviewed as necessary in the light of performance and prevailing market trends.
Each staff member's performance is measured by the results he or she achieves in his
or her field. Different rewards for the same type of work are not tolerated within the
Group.
Ratio of men‘s and women‘s median salaries
2025
2024
2023
Total:
1.18
1.13
1.09
Management
1.36
1.12
1.62
Specialists
0.98
0.93
1.08
Workers
1.20
1.17
1.15
Consolidated Management Report 2025
102
7.2 Relations with Communities
S3- Affected communities
Material impacts, risks and opportunities and how they interact with its strategy and business model
SBM-3 Material impacts, risks and opportunities and how they interact with its strategy and business model
In order to assess how the Group’s material Sustainability topics relate to the Affected Communities topic, during the IRO assessment, each IRO aspect was evaluated based on whether
the impact and opportunity are actual or potential, positive or negative, and accompanied by a broader description of each aspect. During the assessment, the IRO aspects were also
highlighted according to their place in the value chain, and links to the business model were evaluated — a more detailed representation of which can be
found in section 5.6, in the
value chain table. A more detailed overview of these results is provided below.
Material topics for the
Group
IRO aspects
Description
Period
Place in the value chain
Link to strategy and
business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into
the strategy and
business model
Relations with
communities
Positive actual impact:
The positive impact of
organic farms on community
health and the environment
Organic farms, by applying more environmentally friendly
practices, contribute to improving community health. This
method of farming helps maintain a cleaner environment,
reduces pollution, and promotes biodiversity.
•
•
•
Actual negative impact:
Negative environmental
impact of intensive
agricultural activities
Intensive agricultural activity can lead to soil degradation,
water pollution, and a decline in biodiversity. The
cultivation of monocultures and the reduction of natural
habitats weaken ecosystem stability, while intensive
agricultural expansion alters the landscape.
•
•
•
Estimated period. Based on the assessment, both the actual positive impact of organic
farming on community health and the environment, as well as the negative impact of
intensive agriculture on the environment, were classified as having a medium-term
influence (up to 5 years). Although AUGA group has been developing organic farming
since 2017 and has generated significant positive impact over the years, a part of the
Group’s crop growing and livestock activities is currently also carried out using
conventional methods. To diversify risks and ensure stable income, the Group
continuously evaluates market conditions and retains the flexibility to adjust the
proportion of farming practices if market trends indicate potential for change.
Place in the value chain. Following the assessment, both IRO aspects related to this
material topic were attributed to the operational stage of the Group’s value chain. This
conclusion is based on the fact that both aspects are directly linked to the production
processes carried out by AUGA group. During the assessment, attention was given to
communities located near the Group's production sites or farms, as they are the ones
most likely to be directly affected. The positive actual impact is demonstrated through
the Group’s application of environmentally friendly practices in its organic farms,
contributing to the preservation of air, soil, and water quality. This, in turn, has a long-
term positive effect on the health and well-being of surrounding communities and the
environment. Conversely, intensive agricultural activities, where conventional farming
methods are applied, have a negative actual impact on the environment, which can
also affect nearby communities. The use of chemical fertilizers and plant protection
products contributes to soil and water pollution, while intensive soil cultivation can lead
to soil degradation and changes in the landscape.
Link to the business model and strategy. The IRO assessment revealed that the
positive actual impact of organic farming on community health and the environment, as
well as the actual negative impact of intensive agricultural activities on the
environment, stem from the business model. Since the core activities of AUGA group
are crop growing and livestock, the farming methods applied naturally influence both
the environment and surrounding communities, arising as a direct consequence of the
Group’s operational practices.
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103
IRO aspects – risks
In relation to the topic Affected communities and the Group’s identified material
sustainability topics, a risk was identified related to the impact on communities
resulting from the Group’s activities (such as land use changes, pollution of local
ecosystems, biodiversity loss, etc.). This risk was assessed based on the criteria of
likelihood and potential impact on the Group’s revenue. The assessment concluded
that in 2025 this risk is not classified as a priority, and therefore no additional
monitoring or management actions were planned for 2025.
Targets and policies related to affected communities
S3-5 Targets related to managing material negative impacts, advancing positive
impacts and managing material risks and opportunities
S3-1 Policies related to affected communities
AUGA group does not have a community management policy or specific targets to
directly reduce or increase impacts on communities. However, the Group is committed
to a code of business conduct that includes principles for a responsible approach to
communities and their well-being.
The Group's commitments set out in its environmental policy, such as conserving
natural resources, reducing fossil fuel consumption, promoting energy conservation
and reducing greenhouse gas emissions, contribute to the living conditions of the
communities in which the Group operates. For example, the Group's biomethane
production not only solves the problem of disposing of raw materials generated on
livestock farms but also reduces unpleasant odors and improves air quality. Another
important example is that half of the Group's agricultural activities (crop farming) are
carried out organically, with pesticides and other chemicals not used. Meanwhile, in
the remaining part, where regenerative conventional agriculture is applied, natural
plant protection measures are prioritized (selection of resistant seeds, crop rotation,
mechanical weed control), and based on soil tests, the use of mineral fertilizers is
optimized. Where fertilizers are used, their leaching into water is minimized by
fertilizing only at specified times, adhering to protection zones from water bodies, and
immediately incorporating organic fertilizers into the soil. Through these and other
measures or Group practices, AUGA group contributes to the right of communities to a
healthier living environment, cleaner air and water, and the preservation of viable soil
for future generations. The Group's Environmental Protection Policy has not changed
since last year.
The Code of Business Ethics highlights the responsibility of AUGA group to maintain
relations with local communities, especially considering that the Group operates in
various regions of Lithuania, mainly in rural areas. When developing business, the
importance of dialogue with communities, the desire to cooperate and take their
comments into account is emphasized. The Group's Code of Business Ethics has not
changed since last year.
It is important to mention that the Group also sets environmental expectations for its
suppliers – according to the Supplier Code of Ethics, they are encouraged to reduce
the impact of their activities on the environment. Suppliers are encouraged to use
natural resources responsibly, reduce energy and water consumption, and properly
manage waste. Suppliers are also encouraged to assess and control business risks in
the field of environmental protection, use environmentally friendly technologies, and
reduce the amount of harmful substances emitted into the environment. In this way,
AUGA group seeks not only to set an example of responsible activities itself, but also
to spread this approach throughout the value chain, hoping for a wider impact on the
quality of life of communities and a cleaner environment. The Group’s Supplier Code
of Ethics has not changed significantly since last year. More information can be found
in section 5.7 Policies.
The Group recognizes the importance of managing impacts on indigenous peoples.
However, current Group operations do not involve territories inhabited by indigenous
communities. Therefore, this aspect has not yet been incorporated into Group policies
or other operational documents.
Taking action on material impacts on affected communities
S3-4 Taking action on material impacts on affected communities, and approaches to
managing material risks and pursuing material opportunities related to affected
communities, and effectiveness of those actions
„AUGA group“ maintains regular communication with local communities. For several
years, the Group has conducted surveys among stakeholders, including local
communities, to obtain feedback regarding the impact of its activities on residents. The
results of these surveys have helped identify critical regional issues and determine
effective ways to contribute to their resolution and promote community well-being. In
addition to surveys, local units operating in various regions individually address and
respond to feedback from their respective communities.
It is important to note that the Group seeks change in two directions:
1. Through opportunities to create impact in its activities (direct influence on
identified IRO aspects). In order to minimize the negative impact on communities, the
Group applies regenerative conventional agriculture in its activities, prioritizes natural
plant protection measures (selection of resistant seeds, crop rotation, mechanical
weed control), and based on soil research, optimizes the use of mineral fertilizers.
Where fertilizers are used, their leaching into water is minimized by fertilizing only
during specified periods, observing protection zones from water bodies, and
immediately incorporating organic fertilizers into the soil. Also, all activities of the
AUGA group are based on the conservation of natural resources, reducing fossil fuel
consumption, promoting energy saving, and the principles of the circular economy.
2. Through assistance to communities, contributing to their own initiatives (indirect
influence, in order to meet the needs of other nearby communities). The Group's
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104
Code of Business Ethics also emphasizes that when developing its activities, it is
important to ensure constant dialogue with communities, take their expectations into
account and, where possible, contribute to solving relevant issues. For example, the
Group's Baltic Champs has continued to consistently support community, cultural and
educational initiatives. In 2025, the company contributed to various events and
activities to strengthen local communities in Gruzdžiai, Joniškės, Širvintos and Šiauliai
district. It also continued its long-standing support for cultural initiatives and
partnerships that contribute to the preservation of traditions and the fostering of
community spirit. In 2025, the international folklore competition-festival that happens
every two years "Saulės žiedas" was traditionally supported. In addition, Baltic
Champs continued to support educational initiatives in 2025 with a named scholarship
to support talented students at Vilnius University Šiauliai Academy. Baltic Champs is
also a long-standing supporter of the grass hockey club Baltic Champs-Ježvitas and
the team of the Ošio sports club is a multiple Lithuanian champion. These initiatives
reflect the company's ambition to be a responsible organisation that is close to its
communities and creates meaningful change. AUGA group also contributes to
community events and initiatives and donates its products.
Processes to remediate negative impacts and channels
S3-3 Processes to remediate negative impacts and channels for affected communities
to raise concerns
AUGA group operates diverse activities across different sectors, each associated with
distinct communities. Due to this diversity, the Group does not have a single unified
system for community engagement and feedback across all business segments.
However, within individual segments, clear channels exist through which communities
can express their observations or address relevant issues.
Agricultural production (crop growing, livestock, mushroom growing) issues are
addressed by Group companies operating within their respective regions. For
example, at Baltic Champs, feedback from local communities is gathered by
administrative staff of regional divisions, either directly or via electronic and mobile
communication channels. Broader stakeholder groups, including consumers, can
share their observations or complaints about product quality directly with the Group's
Quality Department via email at quality@auga.lt or through AUGA group's social
media channels. Additionally, AUGA group has established a dedicated email address,
etika@auga.lt, allowing individuals to report observed ethical violations within the
Company's operations. Group suppliers can also report potential breaches of the
Supplier Code of Ethics via email at tiekejai@auga.lt. When needed, interested parties
can find general and topic-specific contacts for AUGA group employees on the Group's
website.
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106
7.3 Consumers and End-users
S4 - Consumers and end-users
Material impacts, risks and opportunities and how they interact with its strategy and business model
SBM-3 Material impacts, risks and opportunities and how they interact with its strategy and business model
To assess how the Group's material sustainability topics relate to the topic of Consumers and end-users, during the IRO assessment, each IRO aspect was evaluated based on the
circumstances determining whether the impact or opportunity is actual or potential, positive or negative, as well as a broader description of each IRO aspect. During the assessment,
the IRO
aspects were also identified according to their place in the value chain, and their link to the business model were evaluated. A more detailed representation of this can be found
in section 4.6. Significant Impacts, Risks and Opportunities, value chain table. A detailed overview of these results is presented below.
Material topics for the
Group
IRO aspects
Description
Period
Place in the value
chain
Link to strategy and
business model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the
business model
Integrated into the
strategy and
business model
Consumer safety and
health
Positive actual impact:
More sustainable and
organic products for
consumers
Consumers can choose daily organic and sustainable
products made from raw materials grown on farms in
Lithuania belonging to the AUGA Group. Certified organic
products provide a healthier choice, while products with
no added sugar, high protein content and, from the
beginning of 2025, also lactose-free options, can
contribute to improved nutritional quality.
•
•
•
•
•
•
•
Consumer education on
sustainability
Positive actual impact:
education on sustainability
and ecology
Education about ecology and sustainability promotes
responsible consumption, increases interest in organic
products and contributes to environmental sustainability.
•
•
•
•
•
•
Estimated period. More sustainable and organic products for consumers, along with
education on sustainability and ecology, were classified as having a long-term positive
actual impact (more than 5 years) following the assessment. This evaluation is based
on the Group's ongoing commitment to supplying more sustainable organic products to
the market and growing a community of consumers who choose them. To expand its
consumer base, the Group consistently puts effort into educating consumers in various
ways about the benefits of sustainable and organic products, their production methods,
and how they differ from conventional alternatives. For this reason, as two interrelated
material topics, they are assessed in the same way. The Group’s organically produced
products contribute to consumer health and well-being – they are produced without
added sugar, are characterised by a higher protein content, and from 2025 a portion of
the production is lactose-free, thereby enabling consumers to choose more
sustainable products that meet their dietary needs.
Place in the value chain. The assessment showed that both IRO aspects have a
positive actual impact across all stages of the value chain. The importance of these
aspects begins in the upstream stage - the Group selects suppliers who hold certified
organic credentials, ensuring that raw materials not grown internally are sourced from
reliable, certified partners. This helps ensure that all organic products produced by the
Group meet the necessary organic standards throughout the production process.
Products under the AUGA brand, intended for consumers, are made from raw
materials grown on the Group’s own farms, making this aspect relevant to both the
core operations and the downstream stage. To ensure high-quality and responsible
implementation of these production standards, the Group’s employees are regularly
educated on topics of sustainability and ecology. In addition, AUGA specialists
participate in conferences and exhibitions in Lithuania and abroad to stay up to date
with the latest trends and innovations in the field. These insights are not only
integrated into the Group’s operations but also serve as the foundation for consumer
education, linking all stages of the value chain.
Link to the business model and strategy. It is important to note that offering organic
and more sustainable products to consumers stems directly from the business model,
affects its operation, and is integrated into the Group’s strategy and operating
principles. Consumer-end products are one of AUGA group’s core business segments,
and the more sustainable, organic production of these goods is an integral part of the
business model. These products not only reflect the Group’s principles of organic
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106
production but also serve as a key tool in achieving a strategic business objective -
providing consumers with a more sustainable way of eating. At the same time,
education on sustainability and ecology also stems from the business model and
affects it. As AUGA group’s core activity is more sustainable and organic food
production, educating consumers, suppliers, and the public about organic and a
fundamental part of the business. These educational initiatives contribute to shaping
public opinion, building consumer trust, and increasing demand for organic products,
all of which have a direct impact on the business model.
IRO aspects - risks
The following three related risks have been identified in connection with the topic of
Consumers and end-users and the Group’s material sustainability topics:
Risks related to the quality of the Group's products (mushrooms, grains, vegetables,
dairy products), i.e. increasing efforts to meet quality standards, certification
requirements and other quality assurance criteria. Risks related to consumer education
on sustainability and green products, i.e. challenges in effectively communicating
sustainable practices due to the limited availability of information, as well as consumers'
reluctance to change their behaviour or consumption habits.
All of these risks were assessed based on the criteria of likelihood and the magnitude
of impact on the Group’s revenue. The assessment determined that these risks are not
considered priority in 2025; therefore, no additional monitoring or management actions
were planned for the reporting year.
Objectives and policies focused on consumer safety, health, and education
S4-1 Policies related to consumers and end-users
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
Although AUGA group does not have a specific policy or defined objectives explicitly
dedicated to consumers or end-users, nor specific targets to monitor progress in this
area, the Group is committed to a code of business conduct that includes principles for
interacting with the public. Also, AUGA group is actively implements various initiatives
aimed at increasing positive impact on consumers, raising awareness, and ensuring
the accessibility of more sustainable food products to a broader range of society.
Back in 2023, AUGA group introduced a line of more sustainable organic products to
the market, including everyday products such as dairy products, eggs, and oat flakes.
In 2024, the Group expanded this range further by adding UHT milk, lactose-free UHT
milk, butter, and flavored yogurts,
and at the end of 2025, organic lactose-free yogurts
were introduced to the market, thereby providing even greater opportunities for
consumers to choose more environmentally friendly products. It is important to note
that the ingredients for these products are grown organically on AUGA group farms in
Lithuania (the main ingredient of oatmeal porridges – oats – is also sourced from
AUGA group farms). At these farms, the Group
adheres to EU organic farming
regulations but goes beyond standard requirements (for more details, see section
Policies, objectives and actions related to biodiversity and ecosystems).
Understanding that the agricultural sector has a significant impact on the environment,
AUGA group has been actively shaping consumer habits based on sustainability and
ecology for many years. The Group acknowledges that real change is only possible
when sustainability becomes an integral part of everyday consumer choices, therefore,
it invests its internal resources in education. The significance of these efforts is also
confirmed by the fact that the AUGA brand is among the top ten most environmentally
friendly brands for the third consecutive year in the international Baltic Brands survey.
This recognition highlights AUGA group’s ongoing commitment to sustainability and its
role in shaping consumer awareness about more sustainable food production.
In order to understand whether the education being carried out reaches the consumer
audience and how people's attitudes towards sustainability are changing, AUGA group
has additionally conducted annual surveys since 2020 on the perception of
sustainability and the awareness of the AUGA brand and products. The aim of these
surveys was not only to determine whether consumers are familiar with and
understand the concept of sustainability, but also how they interpret it and how
important this concept is in their daily choices. In previous years, the surveys were
conducted in five major Lithuanian cities, and since 2022 they have been expanded to
three additional cities, thereby better reflecting the broader public perspective.
The latest study involved 706 respondents - Lithuanian residents aged 25 to 60 from
various cities across the country, with higher or advanced education and earning more
than EUR 501 per family member. The survey results revealed that as many as 84% of
respondents claimed to understand the concept of sustainability. When asked to define
the term in their own words, respondents most associated sustainability with
environmental protection, conservation of natural resources, ecology, responsible
consumption, and durability. A notable shift was observed over the past two years:
compared to previous years, public perception of sustainability has significantly
evolved. While in the past, respondents more often linked the term to durability and
longevity, they now increasingly interpret it through the lens of ecology, environmental
protection, and climate change.
In 2023, AUGA group decided to conduct this survey at least every two years or when
appropriate, recognizing that assessing the impact of educational efforts requires a
longer timeframe and continuous monitoring of consumer habits. This approach will
not only provide a more objective evaluation of changes in consumer perception but
also allow for a more accurate measurement of the effectiveness of education
initiatives in the long term. No such analysis has been conducted in 2025.
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107
Actions to ensure consumer safety, health and education
S4-4 Taking action on material impacts on consumers and end- users, and
approaches to managing material risks and pursuing material opportunities related to
consumers and end-users, and effectiveness of those actions
The Group strives to ensure that its raw materials, products and activities meet the
highest quality and sustainability standards, therefore, in various segments and
activities, it constantly pays great attention to third-party inspection and certification. In
order to ensure that the Company's products meet the requirements of organic
production, in 2025. The Group extended the organic production conformity
certificates, confirming that the certified part of the Group's agricultural raw materials is
100% organic, and the final food products, which are produced and certified by
subcontractors from these raw materials, consist of at least 95% of ingredients of
organic agricultural origin. In the reporting year, the AUGA Trade GMP+ certificate
was extended - an international feed safety standard, ensuring that feed raw materials
are produced, handled, transported and stored in accordance with strict quality and
safety requirements. In 2025. The Group company AUGA Trade received the ISCC EU
international sustainability and carbon dioxide certificate,
which Grain LT extended.
This certificate confirms the company's commitment to environmental protection and
sustainability. In 2025, AUGA group farms were certified repeatedly with the malting
barley cultivation standard according to the requirements of regenerative agriculture.
This standard is based on the existing global regenerative agriculture practice and its
principles, recommendations for reducing the global greenhouse effect, the need for
brewers and malt factories to use sustainable raw materials.
Third-party companies that carry out contract manufacturing have implemented food
safety management systems and adhere to standards and certificates such as:
Kosher, BRCGS, Halal, IFS Food Version 8, Crossed Grain Trademark, FSC, EU
organic, ISO 14001. They include the principles of organic production, a responsible
supply chain, environmental commitments and transparency of production processes.
They are also monitored by the competent authorities that certify organic production in
their countries.
To enable consumers to choose not only organic and safely produced but also more
sustainable products, in 2022, AUGA group, in collaboration with scientists from
Kaunas University of Technology, conducted a carbon footprint assessment of several
AUGA branded products using a life cycle assessment (LCA) approach. This
assessment covered all stages of the production process, from raw material growing,
transportation, and final product manufacturing to packaging. For the evaluation, a
selection of products representing different categories was chosen: 2.5% and 3.5% fat
milk in 1-liter packages, carrots and potatoes in 1 kg packages, and universal wheat
flour. The study revealed that the largest share of emissions for all products originates
from the raw material production stage on farms, specifically from crop growing and
dairy farming.
In 2025, AUGA group actively carried out educational initiatives. For example,
throughout the year, the Group educated consumers on its social networks such as
LinkedIn, Instagram and Facebook. On these platforms, consumers were educated
about the benefits of a balanced diet, following the advice of dieticians and
nutritionists, and the main differences between conventional and organic products. At
the beginning of the year, the Group's media representatives also shared expert
insights on market trends for organic and sustainable products, the importance of
innovation and its impact on reducing the environmental impact of agriculture.
Channels for consumers to raise concerns
S4-3 Channels for consumers and end-users to raise concerns
Consumers can express their concerns or complaints about products through various
channels. One of the key methods is a dedicated email inbox, quality@auga.lt,
managed by the Group's quality and production department employees. They promptly
respond to customer feedback or complaints, conducting necessary internal
investigations with the involvement of relevant stakeholders in the product
manufacturing and supply chain, including the Group's production units, contract
manufacturing partners, logistics providers, and retail networks. Based on the findings
of internal investigations and conclusions from relevant supply chain participants, the
quality assurance team is responsible for providing responses to customers. In
exceptional cases where consumer health issues arise due to the Group's fault,
reimbursement for healthcare expenses is considered.
Consumers can also contact the Group regarding its products via the general
telephone number or AUGA group social media channels. In cases where feedback is
received through these alternative communication channels rather than the designated
email, the employees responsible for managing these platforms are required to
promptly inform the quality and production specialists about any consumer concerns.
The Group records all received complaints in internal documentation to monitor trends
and, if necessary, address specific issues related to production, logistics, or other
operational matters.
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109
Governance is an important topic within the Group’s sustainability agenda, and, like other sustainability areas such as social responsibility and environment, it is integrated into the
Group’s business model and strategy. Good governance practices have been embedded in the Group’s operations for many years - the best reflection of this is the independent board
model. It is important to note that starting this year, AUGA group, in line with ESRS requirements, discloses material topics in its report and based on the IRO assessment, reviews the
reasons behind actual or potential impacts or opportunities, the targets set by existing policies to manage those impacts, and the actions taken in 2025. The material topics under the
Governance section are animal welfare, supplier relations, transparency, and compliance. These topics are discussed in more detail in the Governance section.
8.1 Business Conduct
G1 – Business Conduct
Description of the processes to identify and assess material impacts, risks and opportunities
IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities
To assess how the Group’s material sustainability topics relate to the topic of Business conduct, each IRO aspect was evaluated during the IRO assessment. The assessment
considered the circumstances indicating whether the impact or opportunity is actual or potential, positive or negative, and provided a broader description of each IRO aspect. During
the assessment, IRO aspects were also highlighted based on their place in the value chain, as well as their link to the business model, which is presented in more detail in section 5.6,
in the value chain table. A more
detailed overview of these results is provided below.
Material topics for the
Group
IRO aspects
Description
Period
Place in the value
chain
Link to strategy and business
model
Short-term
Medium-term
Long-term
Upstream
Own operations
Downstream
Arise from the
business model
Affect the business
model
Integrated into the
strategy and
business model
Animal welfare
Actual positive impact:
Organic livestock farming and
animal welfare
Some livestock farms (73% in 2024) are organic, and all
farms follow an animal welfare policy, ensuring more
sustainable and animal-friendly conditions.
•
•
•
•
•
•
•
Supplier relations
Actual positive impact:
Sustainable partnership with
suppliers
The Group integrates the principles of ecology and
sustainable business into its supply chain, thereby fostering
environmental responsibility, transparency and other
sustainable practices among its suppliers.
•
•
•
•
•
•
•
Potential negative impact:
Weakened supplier trust
The implementation of the restructuring plan may create a
sense of uncertainty among suppliers, particularly in
segments where changes in cooperation are envisaged. This
may lead to weakened relationships and challenges in
negotiating commercial terms.
•
•
•
•
•
Transparency and
compliance
Actual positive impact: Anti-
corruption and anti-bribery
The Group strives to ensure transparent operations and the
highest standards of business ethics. The Group does not
tolerate corruption or bribery and is committed to preventing it
through preventive measures.
•
•
•
•
•
•
•
Actual positive impact:
Transparency
The Group makes its financial and other reports publicly
available to ensure clarity and trust, promoting responsible
and sustainable business practices.
•
•
•
•
•
•
•
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111
Estimated period. Animal welfare, supplier relations, transparency and compliance,
following the assessment, have been classified as aspects generating a long-term
(more than 5 years) positive actual impact. Animal welfare is an essential part of
AUGA group’s operations due to the Group’s implementation of organic farming
methods, as defined by organic regulations and the Group’s own high animal welfare
standards. For this reason, animal welfare will remain a top priority in this business
segment for as long as the Group continues its livestock activities. Supplier relations
are also one of the Group’s long-term operational priorities, aligned with its target to
build reliable, lasting, and sustainable partnerships with suppliers capable of delivering
quality services and products that meet the Group’s standards and needs. During the
restructuring period (approximately four years), additional challenges may arise in
relations with suppliers regarding the implementation of changes and the review of
commercial terms. Therefore, this negative impact, which was additionally identified in
2025, is classified as a long-term impact.
Transparency and compliance are considered long-term impact areas, as the Group
structures its activities in accordance with the requirements of publicly listed
companies on the share exchange, as well as other good governance practices. These
principles help to build long-lasting relationships with stakeholders, strengthen trust,
and enhance the Group’s reputation.
Place in the value chain. The assessment revealed that all IRO aspects identified by
the Group have a positive actual impact across all stages of the value chain - from the
upstream stage, including supplier relations, through the Group’s operations, to
downstream stakeholders such as investors, consumers, and others. The Group
collaborates exclusively with suppliers who meet its production requirements and
comply with organic farming regulations. Animal welfare is fully integrated into the
Group’s operations, and adherence to these standards contributes to consumer trust in
the AUGA brand - consumers know that the products have been produced responsibly
and ethically across the entire value chain. Anti-corruption, anti-bribery practices, and
transparency are core principles applied at every stage of the value chain. AUGA
group is committed to ensuring ethical and transparent conduct in its internal
operations, partnerships with suppliers, and communications with investors and other
stakeholders. The Group maintains a zero-tolerance policy towards corruption,
implements preventive measures, and, as a listed Company, regularly publishes
financial and other reports.
Link to the business model and strategy. All aspects identified during the IRO
assessment stem from AUGA group’s business model, have a positive and negative
actual impact on its performance, and are integrated into the Group’s strategy and
operational principles. Organic livestock and animal welfare form a core part of the
Group’s strategic direction and are implemented through the business model. These
principles have been in place since 2017, when the Group transitioned to organic
agricultural production. Sustainable partnerships with suppliers also originate from the
business model and ongoing restructuring that directly affects the Group's operations.
As the Group does not grow all raw materials itself, it aims to collaborate exclusively
with responsible partners who meet organic standards. This approach ensures that
AUGA’s raw materials and end-products are organic and meet the Group’s highest
production standards. However, the Group's restructuring processes may create
uncertainty for its suppliers. Anti-corruption, anti-bribery practices, and transparency
are integral components of AUGA group’s business model, especially given the
Group’s status as a publicly listed Company. Adhering to the highest standards of
transparency and ethics is not only a regulatory requirement but also a strategic choice
- the Group enforces preventive measures, strengthens internal processes, and fosters
trust with shareholders, investors, and other stakeholders.
IRO aspects – risks
Related to Business conduct and the Group’s identified material sustainability topics,
five associated risks were identified: inappropriate animal welfare practices (which may
lead to decreased productivity, poor animal health, or increased veterinary costs,
among other effects); risk of losing suppliers or partners (some may withdraw
cooperation with a Company undergoing restructuring); loss of “trusted
supplier/partner” status; legal actions resulting from allegations or incidents of
corruption and bribery; and violations of disclosure regulations, corporate governance
principles, or other legal requirements. All these risks were assessed based on the
likelihood and magnitude of their potential impact on the Group’s revenue. The
assessment concluded that in 2025, that the risk of losing suppliers or partners is
classified as a priority, therefore, this risk is actively monitored and managed in
accordance with established internal procedures. These material risks are also
presented in the 5.6. Significant Impacts, Risks and Opportunities (IRO) to illustrate
their link to the business model and the concentration of risks across value chain
stages. This also helps to visualize the interrelation between risks, impacts, and
environmental dependencies.
The role of administrative, management and supervisory bodies in relation to business
conduct
2 ETAS GOV-1 The role of the administrative, management and supervisory bodies
All AUGA group employees, including administrative, management, and supervisory
bodies, must comply with the Company's Code of Business Ethics. The Group's
management is responsible for ensuring that their subordinates and accountable
individuals are familiar with the Code. It is important to note that AUGA group’s Board
approves the Code and may amend it as needed. Furthermore, as previously
mentioned, the Group has in place valid Policy on Prevention of Corruption and
Conflicts of Interest as well as a Supplier Code of Conduct. The Group’s management
is directly involved in the implementation, monitoring, and prevention processes
related to these policies. More information about business conduct and governance
can be found at:
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110
- in section 3. Governance Report, which describes the Group's organizational model, as well as the implementation model of the separation between the independent Board
and the CEO.
- in section 5.7 Policies, which describes the role of the Board and management in implementing the policies.
Policies and actions related to business conduct
G1-1 Corporate culture and business conduct policies
Material topic
Actual or potential impact
and opportunities
Policy applied by
the Group
Policy target
Key actions in 2025 and monitoring results
Animal
welfare
Actual positive impact:
Organic livestock farming
and animal welfare
Animal Welfare
Policy
To outline the guidelines and
principles by which the Group
ensures animal welfare, including
the fundamental principles that
are followed.
All newly hired employees 250 were introduced to the applicable Animal welfare policy.
The vaccination system that causes less stress for animals is still applicable.
During the reporting period, some farms started feeding animals with updated feed - organic corn silage
and grain, designed to improve energy balance and overall health.
Environmental observations received and completed in 2025.
In 2025, the production of feed in rolls has been cut back, thus reducing the need for plastic, and the majority
of feed is preserved in silage trenches.
No violations related to the Animal welfare policy were identified in 2025.
Supplier
relations
Actual positive impact:
Sustainable partnership
with suppliers
Supplier Code of
Conduct
To outline the guidelines and
principles for managing the
Group’s relationships with
suppliers throughout the entire
business cycle.
All new hired employees 250 have been introduced to the Group's Supplier Code of Conduct.
The AUGA group has a valid Supplier Code of Conduct, which is publicly available on the Group’s website,
, encouraging adherence to the same responsible business principles.
Suppliers were continuously provided with up-to-date information both in person and remotely, in order to
ensure transparency and clarity throughout the entire restructuring process.
No violations related to the Supplier Code of Conduct were identified in 2025.
Potential negative
impact:
Weakened supplier trust
Transparency
and
compliance
Actual positive impact:
Anti-corruption and anti-
bribery
Policy on
Prevention of
Corruption and
Conflicts of
Interest*
To define the general provisions
and principles of the Group’s anti-
corruption and conflict of interest
prevention and management, as
well as the main implementation
guidelines and procedures for
resolving potential conflicts of
interest.
All new hired employees (250) have been briefed on the Group's Policy on Prevention of Corruption and
Conflicts of Interest.
The Group published its financial results on the Nasdaq platform, its official website.
The Company did not receive any reports of corruption or bribery cases, including the bribery of foreign
officials in the context of international business transactions, either through the internal reporting channel
or by other means in 2025
Actual positive impact:
Transparency
*In the section Transparency and Compliance, the Group explains the procedure in place within AUGA group for reporting potential cases of corruption or bribery, as well as how these processes are managed within the organization.
Consolidated Management Report 2025
113
Management of relationships with suppliers
G1-2 Management of relationships with suppliers
AUGA group prioritizes long-term business relationships with its suppliers. The Group
carries out commercial procurement centrally and decentrally, depending on the
business needs, specifics, and the nature and size of the procurement. AUGA group
selects partners by giving preference to local suppliers, provided their products and
services meet the quality and technical requirements set by the Group, comply with
ecology regulations, and the supply conditions reflect market trends and are
competitive.
The Group expects suppliers to adhere to core Environmental, Social, and
Governance (ESG) principles and the United Nations Sustainable Development Goals.
In cooperation, suppliers are encouraged to implement measures that reduce
environmental impact, follow animal welfare standards, ensure employee safety and
health, and prohibit discrimination, forced labor, or child labor, as outlined in the
Group’s Supplier Code of Conducts.
Although the Group does not have an official procedure or process to verify whether
suppliers follow these sustainability principles, it evaluates not only commercial
proposals but also the business reliability of long-term and key suppliers and performs
reputation monitoring using publicly available tools. If reliable information surfaces that
a supplier is not upholding responsible business practices, each case is assessed
individually and cooperation is terminated if necessary. In 2025, the Group did not
identify any violations or terminate cooperation with suppliers due to non-compliance
with sustainability principles. In 2025, reminders about AUGA group’s applicable
Supplier Code of Conducts were sent to suppliers, encouraging them to follow the
same responsible business standards.
The Group provides a channel to report violations of the Supplier Code and receive
related information by emailing a dedicated address: tiekejai@auga.lt. The Supplier
Code of Conducts is publicly available on the AUGA group official website.
Bribery prevention and detection
G1-3 Prevention and detection of corruption and bribery
G1-4 Incidents of corruption or bribery
AUGA group applies the Prevention of Corruption and Conflicts of Interest Policy, the
purpose of which is to ensure transparent operations and adherence to the highest
standards of business ethics. The Group does not tolerate any form of corruption or
bribery and is committed to ensuring that its operations are conducted internationally in
accordance with the highest standards of transparency and anti-corruption, including a
22
In accordance with the Law of the Republic of Lithuania on the Ratification of the Convention on Combating
Bribery of Foreign Public Officials in International Busine
ss Transactions (adopted on 20 April 2017, No. XIII-305)
strict prohibition of any bribery of foreign officials
22
. All Group employees are obligated
to comply with anti-corruption rules. If any signs of corruption are noticed or if a bribe is
offered, employees must immediately inform their direct supervisor and the Head of
the Legal Department. Additionally, employees can report violations of the policy and
receive related information by sending an email to the dedicated mailbox:
etika@auga.lt. The Group takes all necessary measures to protect whistleblowers from
any negative consequences - only the Head of the HR Department has access to this
mailbox and is committed to protecting the identity of whistleblowers. Moreover, under
the Prevention of Corruption and Conflicts of Interest Policy, employees are prohibited
from soliciting or accepting gifts that may cause a conflict of interest or influence
decision-making. The policy clearly defines the circumstances under which gifts are
allowed or prohibited.
The Group does not have a separate investigation committee, but violations of the
Prevention of Corruption and Conflicts of Interest Policy are handled by persons
appointed by the Head of the Legal Department. If actions showing signs of corruption
are identified, disciplinary measures are taken, including temporary suspension or
termination of employment. If signs of criminal activity are found, the Group informs the
competent law enforcement authorities. The Prevention of Corruption and Conflicts of
Interest Policy is publicly available on the AUGA group official website.
No incidents of corruption and bribery in the AUGA group in 2025. During the reporting
period, no reports were received and no cases were identified related to corrupt
activities or the bribery of foreign public officials in the context of international business
transactions. No employees were dismissed or otherwise sanctioned due to corruption
or bribery, nor was the Group forced to terminate or refrain from renewing contracts
with business partners. No public court proceedings related to corruption or bribery
were initiated against AUGA group or its employees.
Transparency
AUGA group follows the principle of transparency in all its activities - from corporate
governance to relationships with employees, consumers, and investors.
For example, back in 2019, the Company decided to eliminate the Supervisory Board
and adopt an independent Board model. This decision was based on best corporate
governance practices and aimed to create a more transparent and efficient
governance system. The Group also enforces policies that define and ensure business
operations are conducted according to the highest accountability standards.
The Group adheres to a fair and transparent Remuneration Policy, clearly defining
salary ranges, calculation methods, and adjustment principles. This fosters employee
trust and promotes a culture of fairness across all operational areas. Transparency is
Consolidated Management Report 2025
114
also reflected in communication with consumers – to avoid greenwashing, AUGA
group provides clear, credible, and research-based information about its products and
production methods. This information is available on official platforms such as
www.bekainosgamtai.lt, www.auga.lt, as well as on AUGA group's social media
channels: Facebook, Instagram, LinkedIn, and YouTube.
Communication with investors plays a crucial role in transparency. AUGA group
complies with the highest accountability standards applicable to listed companies. The
Group ensures that information relevant to investors is published publicly and in an
accessible way. Investors can access data via the Nasdaq platform, where all official
announcements, share price changes, financial reports, and other key data are
published. Additionally, the Nasdaq platform and AUGA group's official website feature
an investor calendar to track upcoming financial announcements and other key events.
In 2025, additional meetings were organised with banks and bondholders, to whom
news related to the restructuring was presented and related issues were discussed.
Furthermore, investors can find comprehensive financial information on AUGA group’s
website – including not only official financial statements but also detailed reports,
analytical presentations, and financial data in a user-friendly Excel format. Detailed
information about each Board member and the Group’s CEO is also available,
together with up-to-date information on the Company’s operations, strategic decisions
and financial results. Consistent and transparent communication enables investors to
make informed decisions while helping AUGA group strengthen trust and uphold high
standards of responsible business conduct.
Compliance information
Compliance is an important part of AUGA group’s operations, especially considering
that AUGA group, RAB is listed on the Nasdaq Vilnius share exchange. In accordance
with Article 12, Part 3 of the Law on Securities of the Republic of Lithuania and Clause
25.4 of the Nasdaq Vilnius Listing Rules, the Group publicly discloses how it complies
with the Corporate Governance Code for companies listed on Nasdaq Vilnius,
including specific provisions or recommendations thereof. Detailed information about
the applicable compliance requirements is provided in Annex I of this document.
Compliance is an integral part of AUGA group’s good governance, ensuring
transparency, accountability, and responsible business conduct. More information
about the Group’s governance and the standards it upholds can be found in section 3.
Governance Report.
116
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Balance Sheets
As at 31 December | |||||
GROUP | COMPANY | ||||
ASSETS | Notes | 2025 | 2024 | 2025 | 2024 |
Non-current assets | |||||
Property, plant and equipment | 5 | 737 | 897 | ||
Right-of-use assets | 6 | 174 | 342 | ||
Investments in subsidiaries | 7 | 76,046 | 91,238 | ||
Intangible assets | 8 | - | - | ||
Trade and other receivables | 11 | 9,426 | 7,054 | ||
Investments accounted for under the equity method | - | - | |||
Other assets | 12 | - | 66 | ||
Deferred income tax assets | 19 | 163 | 74 | ||
Biological assets | 9 | - | - | ||
Total non-current assets | 86,546 | 99,671 | |||
Current assets | |||||
Biological assets | 9 | - | |||
Inventories | 10 | - | - | ||
Trade and other receivables | 11 | - | 12 | ||
Other assets | 12 | 146 | 144 | ||
Cash and cash equivalents | 13 | 2 | 3 | ||
Total current assets | 148 | 159 | |||
Assets held for sale | 30 | 8,455 | - | ||
TOTAL ASSETS | 95,149 | 99,830 | |||
EQUITY AND LIABILITIES | |||||
Capital and reserves | |||||
Share capital | 15 | 67,803 | 67,803 | ||
Share premium | 15 | - | 6,707 | ||
Legal reserve | 15 | - | 2,041 | ||
Revaluation reserve | 15 | - | - | ||
Reserve for share-based payments to employees | 15 | 2,693 | 2,693 | ||
Retained earnings | ( | ( | (18,603) | (19,337) | |
Equity attributable shareholders of the Company | 51,893 | 59,907 | |||
Non-controlling interest | - | - | |||
Total equity | 51,893 | 59,907 |
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Non-current liabilities | |||||
Borrowings | 16 | 5,501 | - | ||
Lease liabilities | 17 | 36 | 183 | ||
Grants | 18 | 419 | 596 | ||
Deferred income tax liabilities | 19 | - | - | ||
Other amounts payable | 16, 20, 21 | 9,830 | 6,371 | ||
15,786 | 7,150 | ||||
Total non-current liabilities | |||||
Current liabilities | |||||
Borrowings | 16 | 25,724 | 31,275 | ||
Lease liabilities | 17 | 158 | 188 | ||
Trade payables | 20 | 888 | 524 | ||
Other amounts payable | 21 | 700 | 786 | ||
Total current liabilities | 27,470 | 32,773 | |||
Liabilities directly associated with the assets held for sale | 30 | - | - | ||
Total liabilities | 43,256 | 39,923 | |||
TOTAL EQUITY AND LIABILITIES | 95,149 | 99,830 |
The accompanying notes are an integral part of these financial statements.
Laurynas Miškinis
Kristupas Baranauskas
Chief Executive Officer
Chief Financial Officer
117
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Statements on Profit or Loss and Other Comprehensive Income
STATEMENT OF PROFIT OR LOSS | Year ended 31 December | |||||
GROUP | COMPANY | |||||
Continuing operations | Notes | 2025 | 2024 | 2025 | 2024 | |
Revenue | 22 | 3,321 | 3,289 | |||
Dividends from subsidiaries | 26 | - | 1,079 | |||
Cost of sales | 22, | ( | ( | - | - | |
23 | ||||||
Change in fair value of biological assets | 9, 22 | ( | ( | - | - | |
GROSS PROFIT (LOSS) | ( | 3,321 | 4,368 | |||
Selling expenses | 24 | ( | ( | (204) | (308) | |
Administrative expenses | 25 | ( | ( | (3,321) | (4,170) | |
Impairment loss of investments in subsidiaries | 7 | (6,726) | (18,696) | |||
Net impairment reversal (loss) of financial assets | ( | ( | (18) | (116) | ||
Net impairment reversal (loss) of intangible assets | ( | - | (327) | |||
Other income | 27 | 19 | 13 | |||
Other gain/(loss), net | 28 | 10 | 8 | |||
OPERATING PROFIT (LOSS) | ( | ( | (6,919) | (19,228) | ||
Finance costs | 29 | ( | ( | (1,652) | (3,609) | |
( | ( | (8,571) | (22,837) | |||
(LOSS) BEFORE INCOME TAX | ||||||
Income tax | 19 | ( | ( | 88 | 75 | |
(LOSS) FROM CONTINUING OPERATIONS | ( | ( | (8,483) | (22,762) | ||
Profit (loss) from discontinued operation (attributable to equity holders of the company) | 30 | ( | - | - | ||
NET (LOSS) FOR THE PERIOD | ( | ( | (8,483) | (22,762) | ||
NET PROFIT/(LOSS) ATTRIBUTABLE TO: | ||||||
Shareholders of the Company | ( | ( | (8,483) | (22,762) | ||
Non-controlling interest | ( | ( | - | - |
118
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Basic and diluted earnings/(loss) per share (EUR) | |||||
31 | ( | ( | (0.04) | (0.10) | |
STATEMENT OF OTHER COMPREHENSIVE INCOME | |||||
NET PROFIT/(LOSS) FOR THE PERIOD | ( | ( | (8,483) | (22,762) | |
Other comprehensive income: | |||||
Items that will not be reclassified to profit or loss | |||||
Revaluation of land, before tax | 5 | ( | - | - | |
Deferred income tax liability on revaluation of land | 19 | ( | - | - | |
Effect of changes in tax rates | 19 | ( | ( | - | - |
Total other comprehensive income | ( | - | - | ||
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR | ( | ( | (8,483) | (22,762) | |
COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO: | |||||
Shareholders of the Company | ( | ( | (8,483) | (22,762) | |
Non-controlling interest | ( | ( | - | - | |
( | ( | (8,483) | (22,762) |
The accompanying notes are an integral part of these financial statements.
Laurynas Miškinis
Kristupas Baranauskas
Chief Executive Officer
Chief Financial Officer
119
120
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Statements of Changes in Equity
Equity attributable to shareholders of the Company | |||||||||
GROUP | Equity | ||||||||
Reserve | for | attributable to | |||||||
share-based | Retained | shareholders | Non- | ||||||
Share | Revaluation payments | to Legal | earnings/ | of the | controlling | ||||
Share capital | premium | reserve | employees | reserve | (deficit) | Company | interest | Total | |
Balance at 1 January 2024 | ( | ||||||||
Comprehensive income | |||||||||
Net (loss) for the year | ( | ( | ( | ( | |||||
Other comprehensive income | - | - | - | - | - | - | - | - | - |
Revaluation of land after income tax effect (notes 5, 19) | |||||||||
Total comprehensive income | ( | ( | ( | ( | |||||
Share-based payment (note 15) | |||||||||
Transfer to reserve for share-based payments to employees (note | |||||||||
15) | ( | ||||||||
Issue of new shares (note 15) | ( | ||||||||
Balance at 31 December 2024 | ( | ||||||||
Comprehensive income | |||||||||
Net profit/(loss) for the year | ( | ( | ( | ( | |||||
Other comprehensive income | - | - | - | - | - | - | - | - | - |
Revaluation of land after income tax effect (notes 5, 19) | ( | ( | ( | ||||||
Total comprehensive income | ( | ( | ( | ( | ( | ||||
Share-based payment (note 15) | |||||||||
Coverage of losses | ( | ( | |||||||
Transfer to reserve for share-based payments to employees (note | |||||||||
15) | |||||||||
Issue of new shares (note 15) | |||||||||
Balance at 31 December 2025 | ( | ||||||||
The accompanying notes are an integral part of these financial statements.
Laurynas Miškinis
Chief Executive Officer
Kristupas Baranauskas
Chief Financial Officer
121
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY
Share capital
Share premium
Reserve for share-
based payments to
employees
Legal reserve
Retained
earnings/(deficit)
Total
Balance at 1 January 2023
67,203
6,707
2,893
2,041
3,218
82,062
Comprehensive income
-
-
-
-
-
-
Net (loss) for the year
-
-
-
-
(22,762)
(22,762)
Total comprehensive income
-
-
-
-
(22,762)
(22,762)
Share-based payment (note 15)
-
-
-
-
607
607
Transfer to reserve for share-based payments to employees (note
15)
-
-
400
-
(400)
-
Issue of new shares (note 15)
600
-
(600)
-
-
-
Balance at 31 December 2023
67,803
6,707
2,693
2,041
(19,337)
59,907
Comprehensive income
Net (loss) for the year
-
-
-
-
(8,483)
(8,483)
Total comprehensive income
-
-
-
-
(8,483)
(8,483)
Share-based payment (note 15)
-
-
-
-
469
469
Transfer to reserve for share-based payments to employees (note
15)
-
-
-
-
-
-
Issue of new shares (note 15)
-
(6,707)
-
(2,041)
8,748
-
Balance at 31 December 2024
67,803
-
2,693
-
(18,603)
51,893
The accompanying notes are an integral part of these financial statements.
Laurynas Miškinis
Chief Executive Officer
Kristupas Baranauskas
Chief Financial Officer
AUGA GROUP AB
Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilnius, Lithuania
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Statements of Cash Flows
GROUP | COMPANY | ||||
Cash flows from operating activities | Notes | 2025 | 2024 | 2025 | 2024 |
Net profit (loss) before tax from: | |||||
Continuing operations | ( | ( | (8,571) | (22,837) | |
Discontinued operations | ( | - | - | ||
Profit before tax, including discontinued operations | ( | ( | (8,571) | (22,837) | |
Non-cash expense (income) items and other adjustments | |||||
Depreciation expense (Property, plant and equipment) | 5 | 236 | 254 | ||
Depreciation expense (Right-of-use assets) | 6 | 142 | 166 | ||
Amortization expense | 8 | - | - | ||
Share-based compensation expense recognized in the income statement | 25 | 469 | 607 | ||
Write-offs of property, plant and equipment/intangible assets | 5 | - | 327 | ||
(Profit) loss on sale of property, plant and equipment | 28 | ( | ( | - | - |
Elimination of other non-cash flows | - | - | |||
Provisions for possible losses on receivables and write-offs of debts | 11 | (2) | (68) | ||
Write-off of inventories and biological assets | 23 | - | - | ||
Impairment of investments | 7 | 6,737 | 18,713 | ||
Interest income | 27 | ( | - | - | |
Finance expenses | 29 | 935 | 2,689 | ||
Interest expense related to right-of-use assets | 29 | 25 | 36 | ||
Dividends from subsidiaries | 26 | - | (1,079) | ||
(Profit) loss due to change in fair value of biological assets | 22 | - | - | ||
Amortization of grants related to assets | 18 | ( | ( | (177) | (121) |
Impairment of inventories | 10, | ( | - | - | |
Effect of discounting of debts of subsidiaries | 29 | 465 | 466 | ||
Changes in working capital | |||||
(Increase) decrease in biological assets | ( | ( | - | - | |
(Increase) decrease in trade and other receivables | ( | (2,294) | (4,247) | ||
(Increase) decrease in inventories | ( | - | 4 | ||
(Decrease) increase in trade and other payables | ( | 544 | 500 | ||
(1,491) | (4,591) | ||||
Interest paid | ( | ( | (986) | (738) | |
Net cash flows from operating activities | (2,477) | (5,329) |
122
123
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
The accompanying notes are an integral part of these financial statements.
Cash flows from investing activities | |||||
Acquisitions of tangible fixed assets | 5 | ( | ( | - | - |
Acquisitions of intangible fixed assets | 8 | ( | (51) | - | |
Acquisition of subsidiaries | 7 | - | - | ||
Disposal of subsidiaries | 7 | - | - | ||
Proceeds from sale of subsidiary | 30 | - | - | ||
Sale of tangible fixed assets | 28 | ( | - | - | |
Grants related to assets received from NMA | 18 | - | - | ||
Dividends received from subsidiaries | 26 | - | - | ||
Loans repaid | - | - | |||
Loans granted | - | - | |||
Net cash flows from investing activities | ( | ( | (51) | - | |
Cash flows from financing activities | |||||
Bonds | 16 | ( | - | - | |
Repayment of financial debts from credit institutions | 16 | ( | ( | (24) | (648) |
Receipt of financial debts from credit institutions | 16 | - | 6,136 | ||
Receipt of payments under supplier financing agreement | - | - | |||
Payments to financial institutions under supplier financing agreement | ( | - | - | ||
Receipt of other loans | 16 | 2,728 | - | ||
Repayment of other loans | 16 | ( | ( | - | - |
Rent payments | 17 | ( | ( | (177) | (166) |
Net cash flows from financing activities | ( | ( | 2,527 | 5,322 | |
Net increase (decrease) in cash and cash equivalents | ( | ( | (1) | (7) | |
Cash and cash equivalents at the beginning of the period | 3 | 10 | |||
Cash and cash equivalents at the end of the period | 2 | 3 |
Laurynas Miškinis
Chief Executive Officer
Kristupas Baranauskas
Chief Financial Officer
124
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Notes to the Financial Statements
1. General Information
General information about AUGA group, RA B (the “Company“):
Company name: AUGA Group AB
Share capital: EUR 67,802,976.72
Registered office address: Konstitucijos pr. 21C, Quadrum North, LT-08130, Vilniu s, Lithuania
Telephone number: +370 5 233 53 40
Email address: info@auga.lt
Website address: www.auga.lt
Legal form: Public limited liability company
Date and place of registration: 25 June 2003, Vilnius, Lithuania
Legal entity‘s code: 126264360
Administrator of the Register of Legal Entities: State enterprise Centre of Registers
The Company’s main business activity is management of agricultural companie s in Lithuania. The main areas of operation of the Group are as follows: growing and sale of agricultural
The fiscal year of the Company and its subsidiaries corresponds with a calendar year.
approve these financial statements and require that the management prepares a new set of financial statements.
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
125
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
126
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
127
128
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
129
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
130
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
131
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
132
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
133
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
134
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
135
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
136
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
137
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
138
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
139
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
140
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
2.24. Investments in Subsidiaries in the Company‘s Separate Financial Statements
Investments in subsidiaries are accounted for at cost less impairment loss.
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
141
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
As of December 31, 2025, the Company's financial liabilities with variable interest rates amounted to EUR 2,816 thousand (December 31, 2024 – 2,846 thousand EUR). If the variable
interest rate changed by 1 percentage point (p.p.), the annual impact on the Company's results would be EUR 28 thousand before tax (December 31, 2024 – EUR 26 thousand). See
note 16 for more information.
Breakdown of the Group‘s and the Company‘s financial liabilities bearing interest (considering bank borrowings and other borrowings, bonds and lease liabilities) (by carrying amount):
GROUP
Liabilities with floating interest rate
Liabilities with fixed interest rate
At 31 December 2025
At 31 December 2024
At 31 December 2025
At 31 December 2024
Borrowings from credit institutions
9,004
4,311
27,767
40,303
Bonds
38,838
38,648
-
-
Other financial liabilities
5,132
382
-
-
Lease liabilities
37,762
45,237
1,320
2,935
Total
90,737
88,578
29,086
43,238
COMPANY
Liabilities with floating interest rate
Liabilities with fixed interest rate
At 31 December 2025
At 31 December 2024
At 31 December 2025
At 31 December 2024
Borrowings from credit institutions 854
888
2,8162,821
Bonds
27,555
27,566
- -
Lease liabilities 194
345
- 26
Parent company's discounted loans
9,068
5,928
- -
Discounted other liabilities from subsidiaries
496
443
- -
Total
38,167
35,170
2,8162,846
As of December 31, 2025, the Company has issued guarantees with a total value of thousand 50,387 EUR (2024 – 50,455 thousand EUR) to banks for the fulfilment of the financial
obligations of the Group's subsidiaries (note 33)
142
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
143
144
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Calculation of loss rates and loss allowances for the Company’s trade receivables:
Credit quality of the Company’s trade receivables
Receivables not
past due
Past due from 1 to
30 days
Past due from 31 to
90 days
Past due over 90
days
Total
At 31 December 2025
Expected credit loss rate
0.00%
0.00%
0.00%
100.00%
Total trade receivables, gross amount
-
-
-
2
2
Loss allowance (Note 11)
-
-
-
(2)
(2)
Trade receivables from subsidiaries
8,272
-
-
-
8,272
Impact of discounting on trade receivables from subsidiaries
(2,093)
-
-
-
(2,093)
Total
6,179
-
-
-
6,179
At 31 December 2024
Expected credit loss rate
0.00%
60.82%
68.98%
100.00%
Total trade receivables, gross amount
2
2
3
65
71
Loss allowance (Note 11)
(1)
(2)
(65)
(68)
Trade receivables from subsidiaries
6,018
-
-
-
6,018
Impact of discounting on trade receivables from subsidiaries
(1,921)
-
-
-
(1,921)
Total
4,099
1
1
-
4,101
The majority of the Company’s trade receivables are from subsidiaries. As at 31 December 2024 and 2025, all of the Company’s receivables and payables were discounted and reclassified
as non-current trade and other receivables (see Note 11). Further details are provided in Note 32.
As at 31 December 2025, the Company recognised an allowance of EUR 2 thousand (2023: EUR 68 thousand) for expected credit losses on trade receivables not related to trade loans
granted to subsidiaries.
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
As of December 31, 2025, and December 31, 2024, the Company did not make provisions for potential losses due to changes in the value of cash and cash equivalents, as the expected
loss rates were insignificant.
145
146
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
147
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Contractual cash flows
COMPANY
Carrying
amount
Total
On demand
Within 1 year
Between 1 and 2
years
Between 3 and 4
years
Over 5 years and
later
At 31 December 2025
Borrowings (note 16)
31,225
34,777
-
27,808
510
6,459
-
Lease liabilities (note 17)
194
213
-
173
13
27
-
Discounted loans and other debts of subsidiaries note 16)
9,564
11,797
-
-
-
-
11,797
Guarantees issued
-
53,857
53,857
-
-
-
-
Trade and other payables (note 20, 21)
1,034
1,034
-
902
33
66
33
Total
42,017
101,677
53,857
28,883
556
6,552
11,830
At 31 December 2024
Borrowings (note 16)
31,275
31,275
31,275
-
-
-
-
Lease liabilities (note 17)
371
413
-
214
172
27
-
Discounted loans and other debts of subsidiaries note 16)
6,371
9,213
-
-
-
-
9,213
Guarantees issued
-
50,455
50,455
-
-
-
-
Trade and other payables (note 20, 21)
533
533
-
533
-
-
-
Total
38,550
91,888
81,730
747
172
27
9,213
As at 31 December 2025, the Company‘s current liabilities exceeded current assets by EUR 27,322 thousand (31 December 2024: EUR 32,613 thousand). As at 31 December 2025,
current liquidity ratio (current assets / current liabilities) was 0.0054 (31 December 2024: 0.0049), and quick ratio was 0.0054 (2024: 0.0049). The deterioration of key indicators in 2024
and 2025 was driven by the circumstances described above – the Company and the Group classify financial liabilities as current until agreements with creditors are reached and also part
of debts will be settled based on asset sales in 2026 under restructurisation plans. The Group’s approach to managing going concern risks is described in note 2.1.
148
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
149
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
4. Critical Accounting Estimates and Assumptions
The Group/Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only
that period, or in the period of the revision and future periods if the revision affects both current and future periods.
sumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in future periods are addressed below.
Listed below are the most significant areas that involved management judgement.
a) Recoverable amount of property, plant and equipment (except land), right-of-use assets and internally generated intangible assets
At each balance sheet date, the Group/Company reviews the carrying amount of its property, plant and equipment, right-of-use assets and internally generated intangible assets to
determine whether there is any indication that those assets might be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group/Company
es the recoverable amount of the cash-generating unit to which the asset belongs.
The recoverable amount is the higher of the fair value less costs to sell and the value-in-use. In assessing the value-in-use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset (or a group of cash-generating units) is estimated to be less than its carrying amount, the carrying amount of the asset (or a group of cash-generating
units) is reduced to its recoverable amount. An impairment loss is recognised immediately in the statement of profit or loss.
In 2024 and 2023 there were no indications showing that the recoverable amount could be lower than the carrying amount, therefore, no impairment test was performed for the Group's
property, plant and equipment, right-of-use assets and internally generated intangible assets.
b) Impairment of investments in subsidiaries (Company)
150
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
As at 31 December 2024, the impairment of investments in subsidiaries was estimated by assessing the recoverable amount. The recoverable amount of investments in subsidiaries is
assessed by discounting the future cash flows to their present value. The management tested its investments in subsidiaries for impairment and concluded that there was impairment loss
(note 7).
c) Realisation of deferred income tax asset
Deferred income tax assets are recognised on accumulated tax losses to the extent it is probable that future taxable profit will be available against which the accumulated tax losses can
be utilised (note 19).
d) Biological assets – fair value of livestock
Dairy cows
Due to the specific nature of agricultural produce, sometimes the fair value of dairy cows cannot be determined using the market approach, as such biological assets in areas where the
Group operates are not traded in an active market, which otherwise would allow using the market value. The fair value of dairy cows is determined using the discounted cash flow model.
The model uses projected revenue from milk sales over the remaining useful life of each cow based on the milk sales price assumption
The carrying amount at the reporting date, key assumptions and principles used in determining the fair value of livestock are described in note 9.
e) Biological assets – fair value of crops
At the end of the reporting period crops are valued in view of biological transformation at the year end. At the year end, most crops are in the stage of having only a little biological
transformation, and therefore, it is appropriate to consider that their fair value approximates their cost at the year end. For winter crops, the biological transformation at the year end is
substantial due to favourable weather conditions in autumn and warm winter. Accordingly, at the year end winter crops may be stated at fair value, provided the Group concludes that the
biological transformation of these crops is more significant than it is typical in the specific period.
The carrying amount at the reporting date, key assumptions and principles used in determining the fair value of crops are described in note 9.
f) Inventory write-down allowance to net realisable value
Assessment of inventories was carried out with reference to the expected sales prices. If the latter were lower than the fair value on initial recognition, inventories were written down.
Significant changes in the management‘s estimates would have impact on the separate and consolidated financial statements.
g) Lease liabilities – lease term of land
When determining the lease term, the management considers all relevant facts and circumstances that create an economic incentive to exercise the extension option or not to exercise
the termination option.
The extension options (or periods beyond the termination options) are included in the lease term when it is reasonably certain that the lease will be extended (will not be terminated). This
is reassessed upon occurrence of either a significant event or a significant change in circumstances that affects such assessment and is within the control of the lessee. As at 31 December
2024, the lease term of land was determined with reference to the business plan.
h) Significant judgement: supplier financing arrangement
To support its strategic suppliers, the Group has entered into the supply chain financing arrangements (note 2.14). Under the arrangements, a financial institution acquires the claim rights
to the selected trade receivables from the supplier. Following such transfer of claim rights, the Group will no longer be able to make early direct payments to the supplier and will not be
able to offset any of trade receivables from these suppliers. However, the Group has determined that the settlement terms of trade payables are otherwise substantially unchanged, and
therefore, it is appropriate to present the relevant amounts
yable under the supplier financing arrangements within trade payables in the balance sheet.
For the purpose of the cash flow statement, the Group considers that the financial institution settles the invoices to the supplier as a payment agent on behalf of the Group. The payments
made to the supplier by the financial institution are therefore presented in the cash flow statement as payments received under supplier financing arrangements. When the Group
151
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
subsequently pays the amount outstanding to the financial institution, this is presented separately as a financing cash outflow. As a consequence, the Group’s payables under supplier
financing arrangements are included in the net debt reconciliation in note 3.
i) Discounting of receivables and payables of Group companies
Until the date of restructuring of the parent company of the Group, the present value of receivables and payables was recorded at acquisition cost. After the restructuring process
began, the overall settlement cycles between group companies are lengthening, considering that the companies of the Group being restructured predict that they will settle with external
creditors first.
Considering that, also, the Company will not be able to perform mutual netting due to legal restrictions, it estimates that short-term receivables and payables related to the group of
companies will be fully recovered only after the end of the restructuring process. When discounting the receivables and payables of Group companies due to the effective restructuring
process, the discount rate applied is equal to the interest rate under the signed loan agreements between group companies. The discount period corresponds to the restructuring period,
based on the assumption that the receivables and payables related to the Group companies will be fully recovered only after the end of the restructuring process.
Accordingly, the receivables/payables have been discounted and are carried at amortized cost.
Significant judgement: classification of assets for expected disposal
Under the approved restructuring plan, certain actions related to the disposal of assets held by the Company and/or the Group are envisaged, including:
• establishment of a Sustainable Dairy Fund to which the Group’s dairy farms are planned to be transferred in order to develop the dairy business and, at a later stage, to dispose of
fund units;
• sale of certain assets of entities controlled by the Company and the Group, with the proceeds used for settlement of financial liabilities.
Management assessed whether, in light of these plans, there is a basis to classify assets as ‘held for sale’ in accordance with the applicable financial reporting standards (IFRS 5).
At the end of the financial year, it was determined that:
• the actions envisaged in the restructuring plan had not yet been initiated;
• not all required approvals from creditors and other stakeholders had been obtained;
• a specific asset disposal plan, including its structure and method of implementation, had not been approved;
• significant uncertainty remains regarding implementation of the plan, including the risk that the envisaged transactions may not occur.
Based on this assessment, management concluded that, at the end of the financial year, the criteria required for classification of assets as held for sale were not met; therefore, such
classification was not applied in the Company’s and the Group’s financial statements.
As at the date of approval of the financial statements, management continues to assess the progress of implementing the restructuring plan and the possible impact on future financial
statements.
152
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
153
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
154
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY
Motor vehicles
Other PP&E
Construction in progress
Total
At 1 January 2024
Cost or revalued amount
179
1,868
-
2,047
Accumulated depreciation
(171)
(746)
-
(917)
Net book amount
8
1,122
-
1 130
Net book amount at 1 January 2024
8
1,122
-
1,130
- additions
96
96
- write-offs and disposals
-
- revaluation
-
- depreciation
(12)
(242)
-
(254)
- reclassifications
51
-
(96)
(45)
- depreciation of reclassifications
(30)
-
-
(30)
Net book amount at 31 December 2024
17
880
-
897
At 31 December 2024
Cost or revalued amount
230
1,868
-
2,098
Accumulated depreciation
(213)
(988)
-
(1,201)
Net book amount
17
880
-
897
Net book amount at 1 January 2025
17
880
-
897
- additions
51
-
-
51
- write-offs and disposals
-
(2)
-
(2)
- revaluation
-
-
-
-
- depreciation
(24)
(212)
-
(236)
- reclassifications
76
-
-
76
- Depreciation of reclassifications
(49)
-
-
(49)
Net book amount at 31 December 2025
71
666
-
737
At 31 December 2025
Cost or revalued amount
357
1,866
-
2,223
Accumulated depreciation
(286)
(1,200)
-
(1,486)
Net book amount
71
666
-
737
155
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Depreciation charges of the Company’s property, plant and equipment are included in administrative expenses.
As at 31 December 2025, property, plant and equipment fully depreciated but still in use by the Company amounted to EUR 403 thousand (31 December 2024: EUR 332 thousand).
As at 31 December 2025, the Company’s property, plant and equipment with the carrying amount of EUR 663 thousand (31 December 2024: EUR 869 thousand) had been pledged to
secure repayment of bank borrowings.
156
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
157
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY
Buildings and structures
Motor vehicles
Total
At 1 January 2024
Cost or revalued amount
1,143
127
1,270
Accumulated depreciation
(674)
(65)
(739)
Net book amount
469
62
531
Net book amount at 1 January 2024
469
62
531
- additions
-
-
-
- write-offs and disposals
-
-
-
- effect of modifications
-
-
-
- depreciation
(153)
(13)
(166)
- reclassifications
-
(52)
(52)
-
29
29
Net book amount at 31 December 2024
316
26
342
At 31 December 2024
Cost or revalued amount
1,143
75
1,218
Accumulated depreciation
(827)
(49)
(876)
Net book amount
316
26
342
Net book amount at 1 January 2025
316
26
342
- additions
-
-
-
- write-offs and disposals
-
-
-
- effect of modifications
-
-
-
- depreciation
(142)
-
(142)
- reclassifications
-
(75)
(75)
- Depreciation of reclassifications
49
49
Net book amount at 31 December 2025
174
-
-
174
At 31 December 2025
Cost or revalued amount
1,143
-
1,143
Accumulated depreciation
(969)
-
(969)
Net book amount
174
-
174
Depreciation charges of the Company’s right-of-use assets were included in administrative expenses.
Under the lease contracts, right-of-use assets had been pledged as collateral for lease liabilities.
158
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
7. Investments in Subsidiaries
2025
2024
At 1 January
91,238
108,745
Acquisition of subsidiaries / additions
-
1,206
Reclassified as Assets Held for Sale
(8,455)
-
Impairment loss
(6,727)
(18,696)
Other financial assets
(10)
(17)
At 31 December
76,046
91,238
In 2025, the Company increased its investments in subsidiaries by raising the share capital of “Agrotechnikos centras” by EUR 1,206 thousand. The share capital was increased by
capitalizing the subsidiary’s debt to the Company as a supplier.
In 2024, the Company increased its investments in subsidiaries by raising the share capital of “Agrotechnikos centras” by EUR 1,206 thousand. The share capital was increased by
capitalizing the subsidiary’s debt to the Company as a supplier.
Impairment
As at 31 December 2025 and 2024, the Company’s management performed impairment tests for the cost of investments in subsidiaries. To assess whether impairment indicators exist,
the cost of investments in subsidiaries operating in farming and mushroom growing activities was compared against the net assets value of those subsidiaries as at 31 December 2025
and 2024. Where the net assets value was lower than the carrying amount of the investment, the management concluded that there existed impairment indications for the investment and
estimated the recoverable amount of the specific subsidiary using the discounted cash flow method.
159
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Information about the Company's subsidiaries as of December 31, 2025, thousand EUR
Investment name
Acquisition
value
Accumulated
impairment
2025 31 12
Equity
Impairment /
reversal of
investment
2025 31 12
Impairment of
investment
2024 31 12
Investment
balance 2025 31
12
Investment balance
2024 31 12
Baltic Champs UAB
26,592
(18,137)
22,709
(5,701)
(12,436)
8,455
14,156
AUGA Raseiniai, UAB
8,314
(5,503)
(813)
(1 442)
(4,061)
2,811
4,253
AUGA Mantviliškis, ŽŪB
2,526
(1,743)
2,822
-
(1,743)
783
783
AUGA Spindulys, ŽŪB
5,079
(789)
8,272
(364)
(425)
4,290
4,654
ŽŪB " AUGA Eimučiai"
719
(138)
569
172
(31)
581
409
Gustonys ŽŪB
-
-
(78)
-
-
-
-
AUGA Ramučiai, UAB
903
(887)
(588)
(784)
-
16
800
Luganta UAB
1549
(1,192)
(3 627)
(427)
-
357
784
ŽŪB " AUGA Žadžiūnai"
2 607
-
4,166
598
-
2,607
2,009
AUGA Skėmiai, ŽŪB
2,649
-
1,906
-
-
2,649
2,649
AUGA Dumšiškės ŽŪB
1,250
(2)
982
(2)
-
1,248
1,250
AGROSS UAB
3
-
631
-
-
3
3
AVG investment UAB
374
-
410
-
-
374
374
ŽŪB "AUGA Alanta"
2,077
-
564
277
-
2,077
1,800
AWG investment 2 UAB
79
-
15
-
-
79
79
ŽŪB "AUGA Jurbarkai"
2 ,871
-
(577)
71
-
2,871
2,800
ŽŪB "AUGA Vėriškės"
1,394
-
1,238
594
-
1,394
800
ŽŪB "AUGA Nausodė"
2,000
-
(130)
-
-
2,000
2,000
ŽŪB "AUGA Kairėnai"
1,881
-
1,015
281
-
1,881
1,600
AUGA Smilgiai, ŽŪB
5,080
-
3,411
-
-
5,080
5,080
AUGA Želsvelė, ŽŪB
3,377
-
6,158
-
-
3,377
3,377
AWG investment 1UAB
9,417
-
10,411
-
-
9,417
9,417
UAB "Grain LT"
10,240
-
13,230
-
-
10,240
10,240
Žemės vystymo fondas 9 UAB
6
-
(26)
-
-
6
6
Žemės vystymo fondas 20 UAB
18,767
-
17,661
-
-
18,767
18,767
Žemės vystymo fondas 10 UAB
3
-
(19)
-
-
3
3
Agrotechnikos centras UAB
3,107
-
281
-
-
3,107
3,107
AUGA Community, UAB
3
-
(909)
-
-
3
3
eTime invest UAB
4,837
(4,837)
(1,009)
-
-
-
-
Agro Management Team UAB
18
-
(221)
-
-
18
18
Agroschool OU - Estija
3
-
10,699
-
-
3
3
AgroGis UAB
4
-
(139)
-
-
4
4
TOTAL, investments in subsidiaries,
thousand EUR
117,730
(33,229)
99,011
(6,727)
(18,696)
84,501
91,228
Baltic Champs UAB
26,592
(18,137)
22,709
(5,701)
(12,436)
8,455
14,156
Total assets held for sale, thousand
EUR
26,592
(18,137)
22,709
(5,701)
(12,436)
8,455
14,156
In 2025, the impairment test results of subsidiaries engaged in agricultural activities revealed that certain subsidiaries showed indicators of impairment, as their net asset value was lower
than the carrying amount of the investment. For these subsidiaries, the discounted future cash flow method was applied, based on seven-year financial forecasts approved by management.
The key assumptions used in the impairment test included projected EBITDA, which was based on the actual cultivated land area, actual livestock numbers, and forecasted indicators
160
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
such as yield, prices, costs, per-hectare subsidies, and operating expenses. Other significant assumptions are presented in the table below. The present value of future cash flows was
determined and compared to the investment’s carrying amount. For part of the companies impairment was also reversed to the original acquisition cost. After evaluating all assumptions,
total impairment loss on investments in agricultural activities for 2025 amounted to EUR 1,026 thousand (2024 – EUR 6,260).
The following assumptions were used in the impairment tests for subsidiaries operating in farming:
Assumption
At 31 December 2025
At 31 December 2024
Forecast period
7 years
7 years
Annual growth rate
3.00%
3.00%
Discount rate (WACC):
9.70%
10.94%
The impact of changes in the assumptions used in the impairment test on the valuation result is presented in the table below.
Change in assumption
Impact on increase in impairment
Assumption
2025
2024
2025
2024
Decrease in annual growth rate
1 p.p.
1 p.p.
(545)
(1,897)
Increase in discount rate (WACC)
1 p.p.
1 p.p.
(1,536)
(1,849)
Decrease in EBITDA
10 p.p.
10 p.p.
(4,051)
(1,178)
In 2025, the mushroom-growing subsidiary was classified as an asset held for sale, taking into account that the company was transferred (the transaction was completed in 2026, as
disclosed in Note). Accordingly, the Company did not prepare forecasts but measured the investment at the lower of the selling price and its carrying amount and, accordingly, recognized
an impairment of this investment and reclassified it as held for sale.
In 2024 the results of impairment indicators assessment of mushroom growing subsidiary showed that there were indications of impairment. The mushroom growing subsidiary include
the investment in Baltic Champs UAB in 2024. The calculations were based on assumptions listed in the table below and based on separate cash flows of UAB “Baltic Champs”, which
were prepared taking into account the specific nature of its operations.. Subsequently, the present value of those future cash flows was determined and it was compared against the cost
of investments. After evaluating all assumptions, the impairment loss on investments in mushroom cultivation activities in 2024 amounted to EUR 12,436 thousand. The main factors that
led to a significant increase in impairment were the reduction of the annual growth rate, which, taking into account the current circumstances and restructuring processes, was lowered to
3% compared to 5.76% last year, and the revision of the discount rate, which was increased due to the ongoing restructuring of the Company from 8.04% to 10.94%.
The following assumptions were used in the impairment tests for subsidiary operating in mushroom growing:
Assumption
At 31 December 2025
At 31 December 2024
Forecast period
7 years
5 years
Annual growth rate
3.00%
5.76%
Discount rate (WACC):
10.94%
8.04%
The impact of changes in the assumptions used in the impairment test on the valuation result is presented in the table below:
Change in assumption
Impact on increase in impairment
Assumption
2024 m.
2024 m.
Decrease in annual growth rate
1 p.p.
(1 594)
Increase in discount rate (WACC)
1 p.p.
(2 089)
Decrease in EBITDA
10 p.p.
(2 686)
161
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
162
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
| plans for the technologies under development due to uncertainty, the Group assessed the technical equipment created as part of the development using the comparable market price |
| method (comparing equipment of similar capacity with market prices). The determined value was recognized as property as it is used in the Company’s operations. The remaining portion |
The Company had acquired an accounting system, which was being developed internally and intended for use across the Group. As the system is no longer planned to be further
developed, the Company wrote it off during 2024.
In 2025 no additional loss allowances were booked.
9. Biological Assets
The Group’s biological assets comprised as follows:
At 31 December 2025
At 31 December 2024
Livestock
15,010
13,978
Total non-current biological assets
15,010
13,978
Crops
14,847
18,464
Mycelium cultivation seedbed
-
2,222
Total current biological assets
14,847
20,686
Total biological assets
29,857
34,664
LIVESTOCK
Value of the Group’s livestock, EUR ‘000
Dairy cows
Heifers
Other livestock
Total
At 1 January 2024
6,897
3,651
136
10,686
Additions
-
-
5
5
Increase (birth)
-
63
47
110
Makeweight
-
4,300
375
4,675
Reclassifications from other categories
3,031
(3,031)
-
-
Disposals
(901)
(352)
(383)
(1,636)
Natural mortality (recognised as change in fair value of biological assets
(note 22)
(287)
(91)
(26)
(404)
Gain/(loss) on change in fair value of biological assets (note 22)
1,149
(545)
(60)
544
At 31 December 2024
9,889
3,995
94
13,978
Additions
-
-
5
5
Increase (birth)
-
63
44
107
Makeweight
-
4,517
416
4,933
Reclassifications from other categories
2,961
(2,961)
-
-
Disposals
(1 446)
(657)
(591)
(2,694)
Natural mortality (recognised as change in fair value of biological assets
(note 22)
(432)
(71)
(36)
(539)
Gain/(loss) on change in fair value of biological assets (note 22)
(748)
(287)
255
(780)
At 31 December 2025
10,224
4,599
187
15,010
163
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
164
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
CROPS
Value of the Group’s crops, EUR ‘000
Crops
At 1 January 2024
20,708
Seeding and other costs before point of harvest
28,013
Harvest of crops
(37,454)
Effect of change in fair value on initial recognition of agricultural produce (note 22)
(11,267)
Autumn seeding and land tillage for spring
18,097
Effect of change in fair value on initial recognition of agricultural produce – winter crops (note 4, 22)
367
At 31 December 2024
18,464
Seeding and other costs before point of harvest
16,267
Harvest of crops
(29,825)
Effect of change in fair value on initial recognition of agricultural produce (note 22)
(4,906)
Autumn seeding and land tillage for spring
14,543
Effect of change in fair value on initial recognition of agricultural produce – winter crops (note 4, 22)
304
At 31 December 2025
14,847
Balances of the Group‘s crops by type:
2025
Winter wheat
Winter
rapeseed
Winter
barley
Winter triticale
Other crops
Total
Total seeded area (tilled land), ha
9,990
3,724
1,101
770
17,121
32,707
Total costs incurred, EUR ‘000
5,992
2,315
560
432
5,242
14,543
Average costs per ha (EUR)
600
622
509
562
306
445
2024
Total seeded area (tilled land), ha
11,741
5,218
1,160
573
15,283
33,975
Total costs incurred, EUR ‘000
7,297
3,995
625
261
5,920
18,097
Average costs per ha (EUR)
621
766
538
455
387
533
165
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
MYCELIUM CULTIVATION SEEDBED
Mycelium cultivation seedbed
At 1 January 2024
2,365
Seeding and other costs incurred before the point of harvest
28,492
Harvest of mushrooms
(28,635)
At 31 December 2024
2,222
Seeding and other costs incurred before the point of harvest
27,500
Harvest of mushrooms
(27,378)
Reclassified as assets held for sale
(2,344)
At 31 December 2025
-
166
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
10. Inventories
At 31 December 2025
At 31 December 2024
Agricultural produce
4,025
4,441
Raw materials and consumables
6,181
8,768
Herbaceous forage
2,909
4,398
Finished products
130
259
Other
499
507
Total
13,744
18,373
Write-down allowance
(1,376)
(1,396)
Carrying amount
12,368
16,977
167
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
168
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
15. Equity
Share premium
The share premium reserve was formed following the completion of the secondary public offering held on 23 August 2018. The share premium reserve amounted to EUR 6,707 thousand
as of 31 December 2024 and in 2025, due to the losses incurred was used to cover accumulated losses and equals to zero as of 31 December 2025
169
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
170
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
171
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Movements in borrowings from subsidiaries:
COMPANY
2025
2024
Balance at 1 January
6,371
3,479
Proceeds from borrowings during the year
2,728
5,750
Repayments of borrowings
-
(648)
Borrowings offset with dividends receivable
-
-
Borrowings offset with loan granted
-
-
Non-cash loan for investments in subsidiaries
-
-
Interest charged
199
479
Interest paid
(199)
(479)
Transfer of other debts of subsidiaries to long-term
-
632
Impact of discounting loans and other debts of subsidiaries
465
(2,842)
Balance at 31 December
9,564
6,371
172
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
173
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
The Company’s future minimum lease payments comprised as follows:
At 31 December 2025
At 31 December 2024
Minimum lease payments
Present value of minimum lease
payments
Minimum lease payments
Present value of minimum lease
payments
Within 1 year
173
158
214
188
Later than 1 year
40
36
199
183
Minimum lease payments
213
194
413
371
Less: future finance charges
(19)
-
(42)
-
Present value of minimum lease payments
194
194
371
371
174
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
175
176
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
177
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
After discounting the debts of the Company's group companies (Note 32), amounts payable within one year to the Group companies were reclassified into the group of amounts payable
after one year and other long-term liabilities.
178
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts are in EUR ’000 unless otherwise stated)
179
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY
The Company’s revenue by nature:
2025
2024
Business consultation and financial accounting services
3,321
3,289
Dividends from subsidiaries
-
1,079
Other revenue
-
-
Total
3,321
4,368
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
180
181
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
182
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
26. Dividends from Subsidiaries
During the Annual General Meetings of Shareholders of the Group entities held in 2024, the decisions were made to pay out dividends to the shareholders. In 2024, the Company
received dividends from the Group entities in amount of EUR 1,079 thousand. No dividends were announced during 2025.
Share of dividends in
2025 (%)
Share of dividends in
2025 (EUR)
Share of dividends in
2024 (EUR)
Share of dividends in
2024 (EUR)
Entity distributing dividends
AUGA Group AB
AUGA Group AB
AUGA Group AB
AUGA Group AB
Baltic Champs, UAB
100.00
-
100.00
-
Žemės Vystymo Fondas 20 UAB
100.00
-
100.00
1,079,074
AWG Investment 2 UAB
100.00
-
100.00
-
AVG Investment UAB
100.00
-
100.00
-
Total
-
-
-
1,079,074
183
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
184
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
185
186
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
187
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
COMPANY
The Company‘s related parties are as follows:
- AUGA group RAB shareholders with control and significant influence;
- Subsidiaries of AUGA Group AB
The Company's transactions with related parties and balances of transactions were as follows:
2025
Related parties of the Company
Loans
granted
Receivables and
prepayments
Borrowings
Payables
Interest on borrowings
and other purchases
Sales and interest
income
Amount of subsidiaries before discounting
-
12,616
11,157
640
280
3,338
Impact of discounting on subsidiaries' amounts
-
(3,190)
(2,089)
(144)
491
-
Shareholders with significant influence
Baltic Champs Group, UAB (private limited
liability company under restructuring, legal
entity code 145798333, registered address:
Poviliškių village, Gruzdžiai eldership, Šiauliai
District Municipality)
-
-
-
-
-
-
Kęstutis Juščius (correspondence address:
Konstitucijos pr. 21C, Vilnius)
-
-
-
-
-
-
Total
-
9,426
9,068
496
771
3,338
2024
Related parties of the Company
Loans granted
Receivables and
prepayments
Borrowings
Payables
Interest on borrowings
and other purchases
Sales and interest
income
Subsidiaries
-
10,362
8,581
632
511
3,225
Impact of discounting on amounts of
subsidiaries
-
(3,308)
(2,653)
(189)
466
-
-
Shareholders with significant influence
Baltic Champs Group, UAB (private limited
liability company under restructuring, legal
entity code 145798333, registered address:
Poviliškių village, Gruzdžiai eldership, Šiauliai
District Municipality)
-
-
-
-
-
-
Kęstutis Juščius (correspondence address:
Konstitucijos pr. 21C, Vilnius)
-
-
-
-
-
-
Total
-
7,054
5,928
443
977
3,225
188
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Discounting of debts of the Group of Companies
When performing discounting, the Company used the average borrowing cost, which is applied according to the signed loan agreements with UAB “Žemės vystymo fondas 20”. This
rate is calculated as the average borrowing rate of the Group of Companies, which is applied to mutual transactions. Discount rate applied in 2025 is 7.54% (7.99% in 2024).
In 2024 the Company applied a discount rate of 6.96% to the loan received from UAB “Baltic Champs” and the related interest payable, according to the valid loan agreement.
Until the date of restructuring of the Group’s parent company, the present value of amounts receivable and payable was recorded at acquisition cost. After the restructuring process
has begun, the overall settlement cycles between the group companies are lengthening, considering that the companies of the restructured group predict that they will s
ttle with external creditors first.
In 2025 the Company stopped discounting of loan received from UAB “Baltic Champs” and the related interest payable, as payables to the subsidiary are part of the sale of Baltic
Champs, UAB and is part of the price and any amounts paid will be compensated to the Company.
Considering also that the Company will not be able to perform mutual netting due to legal restrictions, the Company estimates that the short-term receivables and payables related
to the group of companies will be fully recovered only after the end of the restructuring process, i.e. in 2029. Accordingly, the receivables/payables have been discounted and are
accounted for at amortized cost, applying the interest rate specified above.
Impact of debt discounting on the income statement
Total, thousand EUR
Income from discounting of restructured debts
-
Expenses from discounting of restructured debts
(491)
Result from financial and investing activities from discounting
(491)
In the Company's income (loss) statement, the result of financial and investment activities is reflected in financial activity expenses.
The impact of debt discounting on the value of receivables and payables
Original value
Discount amount
Value after discounting
Loans granted to subsidiaries
-
-
-
Other receivables from subsidiaries
3,265
(825)
2,440
Dividends receivable from subsidiaries
1,079
(272)
807
Trade receivables from subsidiaries
8,272
(2,093)
6,179
Loans granted by subsidiaries
11,157
(2,089)
9,068
Payables to subsidiaries
640
(144)
496
189
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Guarantees - Company
As of 31 December 2025, the value of the Company's guarantees to banks and suppliers for securing the financial liabilities of the Group's subsidiaries is equal to
EUR 53,857 thousand (2024 – EUR 50,455 thousand).
* * * *
190
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
(All amounts are in EUR ’000 unless otherwise stated)
Annexes
UN Global Impact Indicators
List of ESRS Disclosure Requirements
List of Datapoints in Cross-cutting and Topical Standards that
Derive from other EU Legislation
Corporate Governance Reporting Form for the Year Ended
December, 2025
Confirmation of Responsible People
Consolidated Annual Report 2025
189
UN Global Compact Indicators
UN Global Compact objectives
Page
Human Rights
Support and respect the protection of internationally proclaimed human rights
62
Ensure that the Company does not contribute to human rights violations
62
Forced Labour
Uphold the freedom of workers association and effective recognition of the right to collective bargaining
99
Support the elimination of all forms of forced and compulsory labour
62
Ensure effective abolition of child labour
62
Aim to eliminate discrimination in respect of employment and occupation
62
Environmental
protection
Apply preventive measures to ensure environmental protection
72
Undertake initiatives to promote greater environmental responsibility
72
Encourage the development and diffusion of environmentally friendly technologies
8
Anti-Corruption
Work against corruption in all its forms, including extortion and bribery
62
Consolidated Annual Report 2025
190
List of ESRS Disclosure Requirements
2 ESRS IRO-2
ESRS 2 General disclosures
Page
BP-1
General basis for preparation of sustainability statements
46
BP-2
Disclosures in relation to specific circumstances
49,69
MDR-A
Actions and resources in relation to material sustainability matters
60
MDR-P
Policies adopted to manage material sustainability matters
60, 62
MDR-T
Tracking effectiveness of policies and actions through targets
60
GOV-1
The role of administrative, management, and supervisory bodies
37, 39, 50
GOV-2
Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
50
GOV-3
Integration of sustainability-related performance in incentive schemes
50
GOV-4
Statement on due diligence
51
GOV-5
Risk management and internal controls over sustainability reporting
51
SBM-1
Strategy, business model and value chain
8, 11, 52, 61
SMB-2
Interests and views of stakeholders
53
SMB-3
Material impacts, risks and opportunities and their interaction with strategy
and business model
15, 55, 58
IRO-1
Description of the processes to identify and assess material impacts, risks
and opportunities
55
IRO-2
ESRS Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement
46, 190
E1 – Climate change
SBM-3-
E1
Material impacts, risks and opportunities and their interaction with strategy
and business model
70
IRO-1-E1
Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
70
E1-1
Transition plan for climate change mitigation
67
E1-2
Policies related to climate change mitigation and adaptation
72
E1-4
Targets related to climate change mitigation and adaptation
67
E1-3
Actions and resources in relation to climate change policies
72
E1-5
Energy consumption and mix
73
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
75
E4 – Biodiversity and ecosystems
IRO-1-E4
Description of processes to identify and assess material biodiversity and
ecosystem-related impacts, risks and opportunities
79
SBM-3-
E4
Material impacts, risks and opportunities and their interaction with strategy
and business model
79
E4-2
Policies related to biodiversity and ecosystems
82
E4-3
Actions and resources related to biodiversity and ecosystems
82
E4-4
Targets related to biodiversity and ecosystems
82
E5 – Circular economy
IRO-1-E5
Description of the processes to identify and assess material resource use
and circular economy-related impacts, risks and opportunities
84
SBM-3-
E5
Material impacts, risks and opportunities and their interaction with strategy
and business model
84
E5-1
Policies related to resource use and circular economy
85
E5-2
Actions and resources related to resource use and circular economy
85
E5-4
Resource inflows
86
E5-5
Resource outflows
86
S1 – Own workforce
SBM-3-
S1
Material impacts, risks and opportunities and their interaction with strategy
and business model
96
S1-1
Policies related to own workforce
98
S1-4
Taking action on material impacts on own workforce, and approaches to
mitigating material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
98
S1-5
Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
97
S1-6
Characteristics of the undertaking’s employees
99
Consolidated Annual Report 2025
191
S1-8
Collective bargaining coverage and social dialogue
99
S1-9
Diversity metrics
100
S1-11
Social protection
100
S1-12
Persons with disabilities
100
S1-13
Training and skills development metrics
101
S1-14
Health and safety metrics
101
S1-16
Compensation metrics (pay gap and total compensation)
101
S3 – Affected communities
SBM-3-
S3
Material impacts, risks and opportunities and their interaction with strategy
and business model
102
S3-1
Policies related to affected communities
103
S3-3
Processes to remediate negative impacts and channels for affected
communities to raise concerns
104
S3-4
Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material
opportunities related to affected communities, and effectiveness of those
actions
103
S3-5
Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunitie
103
S4 – Consumers and end-users
SBM-3-
S4
Material impacts, risks and opportunities and their interaction with strategy
and business model
106
S4-1
Policies related to consumers and end-users
106
S4-3
Processes to remediate negative impacts and channels for consumers
and end-users to raise concerns
107
S4-4
Taking action on material impacts, and approaches to mitigating material
risks and pursuing material opportunities related to consumers and end-
users and effectiveness of those actions and approaches
107
S4-5
Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
106
G1 – Business conduct
2 ETAS
GOV-1
The role of the administrative, management and supervisory bodies
111
2 ETAS
IRO-1
Description of the processes to identify and assess material impacts, risks
and opportunities
109
G1-1
Corporate culture and business conduct policies
110
G1-2
Management of relationships with suppliers
111
G1-3
Prevention and detection of corruption and bribery
111
G1-4
Incidents of corruption or bribery
111
Consolidated Annual Report 2025
192
List of Datapoints in Cross-cutting and Topical Standards that Derive from other EU Legislation
2 ESRS IRO-2
Disclosure Requirement and related
datapoint
SFDR reference
23
Pillar 3 reference
24
Benchmark Regulation
reference
25
EU Climate Law reference
26
Material / Not
material
Page
ESRS 2 GOV-1
Board's gender diversity paragraph 21
(d)
Indicator number 13
of Table #1 of Annex
1
Commission Delegated
Regulation (EU) 2020/1816,
Annex II
Material
37
ESRS 2 GOV-1
Percentage of board members who are
independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
Material
37
ESRS 2 GOV-4
Statement on due diligence paragraph 30
Indicator number 10
Table #3 of Annex 1
Material
51
ESRS 2 SBM-1
Involvement in activities related to fossil
fuel activities paragraph 40 (d) i
Indicators number 4
Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 Table 1: Qualitative
information on Environmental risk and Table
2: Qualitative information on Social risk
Delegated Regulation
(EU) 2020/1816, Annex II
Material
11
ESRS 2 SBM-1
Involvement in activities related to
chemical production paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Material
11
ESRS 2 SBM-1
Involvement in activities related to
controversial weapons paragraph 40
(d) iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1818,
Article 12(1) Delegated
Regulation (EU) 2020/1816,
Annex II
Material
11
ESRS 2 SBM-1
Involvement in activities related to
cultivation and production of tobacco
paragraph 40 (d) iv
Delegated Regulation
(EU) 2020/1818,
Article 12(1) Delegated
Regulation (EU) 2020/1816,
Annex II
Material
11
ESRS E1-1
Transition plan to reach climate
neutrality by 2050 paragraph 14
Regulation (EU) 2021/1119,
Article 2(1)
Material
67
ESRS E1-1
Undertakings excluded from Paris-
aligned Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 1: Banking book-Climate Change
transition risk: Credit quality of exposures by
sector, emissions and residual maturity
Delegated Regulation
(EU) 2020/1818, Article12.1
(d) to (g), and Article 12.2
Not material
23
Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1)
24
Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1)
25
Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts (OJ L 171, 29.6.2016, p. 1).
26
Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality (OJ L 243, 9.7.2021, p. 1)
Consolidated Annual Report 2025
193
ESRS E1-4
GHG emission reduction targets
paragraph 34
Indicator number 4
Table #2 of Annex 1
Article 449a
Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453
Template 3: Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation
(EU) 2020/1818, Article 6
Material
67
ESRS E1-5
Energy consumption from fossil
sources disaggregated by sources
(only high climate impact sectors)
paragraph 38
Indicator number 5
Table #1 and
Indicator n. 5 Table
#2 of Annex 1
Material
73
ESRS E1-5
Energy consumption and mix paragraph
37
Indicator number 5
Table #1 of Annex 1
Material
73
ESRS E1-5
Energy intensity associated with
activities in high climate impact
sectors paragraphs 40 to 43
Indicator number 6
Table #1 of Annex 1
Material
74
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG
emissions paragraph 44
Indicators number 1
and 2 Table #1 of
Annex 1
Article 449a; Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 Template 1: Banking book –
Climate change transition risk: Credit quality
of exposures by sector, emissions and
residual maturity
Delegated Regulation
(EU) 2020/1818,
Article 5(1), 6 and 8(1)
Material
75
ESRS E1-6
Gross GHG emissions intensity
paragraphs 53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 Template 3: Banking book –
Climate change transition risk: alignment
metrics
Delegated Regulation
(EU) 2020/1818, Article 8(1)
Material
77
ESRS E1-7
GHG removals and carbon credits
paragraph 56
Regulation (EU) 2021/1119,
Article 2(1)
Not material
ESRS E1-9
Exposure of the benchmark portfolio to
climate-related physical risks
paragraph 66
Delegated Regulation
(EU) 2020/1818, Annex II
Delegated Regulation
(EU) 2020/1816, Annex II
The data point is
not disclosed,
applying the
transitional
provisions
applicable to
first‑wave
undertakings
under ESRS
(Omnibus / Quick
Fix package)
ESRS E1-9
Disaggregation of monetary amounts
by acute and chronic physical risk
paragraph 66 (a)
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 paragraphs 46 and 47;
Template 5: Banking book - Climate change
The data point is
not disclosed,
applying the
transitional
Consolidated Annual Report 2025
194
ESRS E1-9
Location of significant assets at
material physical risk paragraph 66 (c).
physical risk: Exposures subject to physical
risk.
provisions
applicable to
first‑wave
undertakings
under ESRS
(Omnibus / Quick
Fix package)
ESRS E1-9 Breakdown of the carrying
value of its real estate assets by energy-
efficiency classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013;
Commission Implementing Regulation
(EU) 2022/2453 paragraph 34;Template
2:Banking book -Climate change transition
risk: Loans collateralised by immovable
property - Energy efficiency of the collateral
The data point is
not disclosed,
applying the
transitional
provisions
applicable to
first‑wave
undertakings
under ESRS
(Omnibus / Quick
Fix package)
ESRS E1-9
Degree of exposure of the portfolio to
climate- related opportunities
paragraph 69
Delegated Regulation
(EU) 2020/1818, Annex II
The data point is
not disclosed,
applying the
transitional
provisions
applicable to
first‑wave
undertakings
under ESRS
(Omnibus / Quick
Fix package)
ESRS E2-4
Amount of each pollutant listed in
Annex II of the E-PRTR Regulation
(European Pollutant Release and
Transfer Register) emitted to air, water
and soil, paragraph 28
Indicator number 8
Table #1 of Annex 1
Indicator number 2
Table #2 of Annex 1
Indicator number 1
Table #2 of Annex 1
Indicator number 3
Table #2 of Annex 1
Not material
ESRS E3-1
Water and marine resources paragraph
9
Indicator number 7
Table #2 of Annex 1
Not material
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8
Table 2 of Annex 1
Not material
ESRS E3-1
Sustainable oceans and seas
paragraph 14
Indicator number 12
Table #2 of Annex 1
Not material
ESRS E3-4
Total water recycled and reused
paragraph 28 (c)
Indicator number 6.2
Table #2 of Annex 1
Not material
Consolidated Annual Report 2025
195
ESRS E3-4
Total water consumption in m
3
per net
revenue on own operations paragraph
29
Indicator number 6.1
Table #2 of Annex 1
Not material
ESRS 2- IRO 1 - E4 paragraph 16 (a) i
Indicator number 7
Table #1 of Annex 1
Material
79
ESRS 2- IRO 1 - E4 paragraph 16 (b)
Indicator number 10
Table #2 of Annex 1
Material
79
ESRS 2- IRO 1 - E4 paragraph 16 (c)
Indicator number 14
Table #2 of Annex 1
Material
80, 81
ESRS E4-2
Sustainable land / agriculture practices
or policies paragraph 24 (b)
Indicator number 11
Table #2 of Annex 1
Material
82
ESRS E4-2
Sustainable oceans / seas practices or
policies paragraph 24 (c)
Indicator number 12
Table #2 of Annex 1
Not material
ESRS E4-2
Policies to address deforestation
paragraph 24 (d)
Indicator number 15
Table #2 of Annex 1
Not material
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13
Table #2 of Annex 1
Material
86
ESRS E5-5
Hazardous waste and radioactive
waste paragraph 39
Indicator number 9
Table #1 of Annex 1
Material
86
ESRS 2- SBM3 - S1
Risk of incidents of forced labour
paragraph 14 (f)
Indicator number 13
Table #3 of Annex I
Material
96
ESRS 2- SBM3 - S1
Risk of incidents of child labour
paragraph 14 (g)
Indicator number 12
Table #3 of Annex I
Not material
ESRS S1-1
Human rights policy commitments
paragraph 20
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex I
Material
98
ESRS S1-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 21
Delegated Regulation
(EU) 2020/1816, Annex II
Material
98
ESRS S1-1
processes and measures for
preventing trafficking in human beings
paragraph 22
Indicator number 11
Table #3 of Annex I
Not material
ESRS S1-1
Indicator number 1
Table #3 of Annex I
Material
101
Consolidated Annual Report 2025
196
workplace accident prevention policy
or management system paragraph 23
ESRS S1-3
grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5
Table #3 of Annex I
Material
98
ESRS S1-14
Number of fatalities and number and
rate of work-related accidents
paragraph 88 (b) and (c)
Indicator number 2
Table #3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Material
101
ESRS S1-14
Number of days lost to injuries,
accidents, fatalities or illness
paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
Material
101
ESRS S1-16
Unadjusted gender pay gap paragraph
97 (a)
Indicator number 12
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Material
101
ESRS S1-16
Excessive CEO pay ratio paragraph 97
(b)
Indicator number 8
Table #3 of Annex I
Material
101
ESRS S1-17
Incidents of discrimination paragraph
103 (a)
Indicator number 7
Table #3 of Annex I
Not material
ESRS S1-17
Non-respect of UNGPs on Business and
Human Rights and OECD paragraph 104
(a)
Indicator number 10
Table #1 and
Indicator n. 14 Table
#3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818 Art 12 (1)
Not material
ESRS 2- SBM3 – S2
Significant risk of child labour or
forced labour in the value chain
paragraph 11 (b)
Indicators number 12
and n. 13 Table #3 of
Annex I
Not material
ESRS S2-1
Human rights policy commitments
paragraph 17
Indicator number 9
Table #3 and
Indicator n. 11 Table
#1 of Annex 1
Not material
ESRS S2-1
Policies related to value chain workers
paragraph 18
Indicator number 11
and n. 4 Table #3 of
Annex 1
Not material
ESRS S2-1
Non-respect of UNGPs on Business and
Human Rights principles and OECD
guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II
Delegated Regulation
(EU) 2020/1818, Art 12 (1)
Not material
ESRS S2-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation
(EU) 2020/1816, Annex II
Not material
Consolidated Annual Report 2025
197
ESRS S2-4
Human rights issues and incidents
connected to its upstream and
downstream value chain paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
ESRS S3-1
Human rights policy commitments
paragraph 16
Indicator number 9
Table #3 of Annex 1
and Indicator number
11 Table #1 of Annex
1
Material
103
ESRS S3-1
non-respect of UNGPs on Business
and Human Rights, ILO principles or
and OECD guidelines paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not material
ESRS S3-4
Human rights issues and incidents
paragraph 36
Indicator number 14
Table #3 of Annex 1
Not material
ESRS S4-1
Policies related to consumers and end-
users paragraph 16
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex 1
Material
106
ESRS S4-1
Non-respect of UNGPs on Business
and Human Rights and OECD
guidelines paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
Not material
ESRS S4-4
Human rights issues and incidents
paragraph 35
Indicator number 14
Table #3 of Annex 1
Not material
ESRS G1-1
United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15
Table #3 of Annex 1
Material
110
ESRS G1-1
Protection of whistle- blowers
paragraph 10 (d)
Indicator number 6
Table #3 of Annex 1
Material
111
ESRS G1-4
Fines for violation of anti-corruption
and anti-bribery laws paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II)
Not material
ESRS G1-4
Standards of anti- corruption and anti-
bribery paragraph 24 (b)
Indicator number 16
Table #3 of Annex 1
Material
111
Consolidated Annual Report 2025
198
Corporate Governance Reporting Form for the Year Ended 31 December, 2025
The public limited liability company AUGA group, RAB (hereinafter referred to as the “Company”), acting in compliance with Article 12 (3) of the Law of the Republic of Lithuania on
Securities and paragraph 25.4 of the Listing Rules of AB Nasdaq Vilnius, hereby discloses how it complies with the Corporate Governance Code for the Companies listed on Nasdaq
Vilnius as well as its specific provisions or recommendations. In case of non-compliance with this Code or some of its provisions or recommendations, the specific provisions or
recommendations that are not complied with must be indicated and the reasons for such non-compliance must be specified. In addition, other explanatory information indicated in this
form must be provided.
Summary of the Corporate Governance Report:
According to the Articles of Association of Company the governing bodies of the Company are the General Shareholder’s Meeting, the Board and CEO. The Company does not have a
supervisory board, but supervision functions set by the Law on Companies of the Republic of Lithuania are performed by the Board, comprised from 2 dependent (Kęstutis Juščius and
Aleksandras Šutovičius) and 3 independent members (Peter Bryde, Andrej Cyba and Linas Strėlis).
There is one committee in the Company - Audit Committee. The Audit Committee is an advisory body of the Board in matters related to accounting, audit, risk management, internal
control and internal audit, supervision, budgeting and compliance. The Audit Committee consists of 1 dependent and 2 independent members of the Board. The Company does not have
a Nomination and Remuneration Committees as its functions are performed by the Board.
More information about the corporate governance, shareholders’ rights, activities of the Board and the Committees are provided in the Consolidated Annual Report of Company for the
year ended 31 December 2025 and in structured table of this Corporate Governance report.
Structured table for disclosure:
PRINCIPLES/ RECOMMENDATIONS
YES/NO/NOT APPLICABLE
COMMENTARY
Principle 1: General meeting of shareholders, equitable
treatment of shareholders, and shareholders’ rights
The corporate governance framework should ensure the
equitable treatment of all shareholders. The corporate
governance framework should protect the rights of
shareholders.
1.1. All shareholders should be provided with access to the
information and/or documents established in the legal acts on equal
terms. All shareholders should be furnished with equal opportunity to
participate in the decision-making process where significant
corporate matters are discussed.
YES
The Company's documents and statutory information are publicly available
on the Company's
website (in Lithuanian and English).
All shareholders have equal rights to participate in General Shareholders'
Meetings and to take decisions that are important to the Company.
1.2. It is recommended that the company’s capital should consist only
of the shares that grant the same rights to voting, ownership, dividend
and other rights to all of their holders.
YES
The ordinary registered shares comprising the Company's share capital
confer the same rights on all shareholders.
1.3. It is recommended that investors should have access to the
information concerning the rights attached to the shares of the new
YES
The Company publicly discloses information about the rights attached to
newly issued shares. Investors can find out about the rights attached to the
Consolidated Annual Report 2025
199
issue or those issued earlier in advance, i.e. before they purchase
shares.
shares already issued in the Articles of Association published on the
Company's website.
1.4 Exclusive transactions that are particularly important to the
company, such as transfer of all or almost all assets of the company
which in principle would mean the transfer of the company, should be
subject to approval of the general meeting of shareholders.
YES
Clause 6.4.25 of the Company's Articles of Association stipulates that the
any decision on exceptional transactions of major importance, such as the
transfer of all or substantially all of the Company's assets, which would
effectively entail a disposal of the Company, is within the exclusive
competence of the General Meeting of Shareholders.
1.5 Procedures for convening and conducting a general meeting of
shareholders should provide shareholders with equal opportunities to
participate in the general meeting of shareholders and should not
prejudice the rights and interests of shareholders. The chosen venue,
date and time of the general meeting of shareholders should not
prevent active participation of shareholders at the general meeting.
In the notice of the general meeting of shareholders being convened,
the company should specify the last day on which the proposed draft
decisions should be submitted at the latest.
YES
The venue of the General Meeting of Shareholders is in Vilnius, usually in
the conference room of the business center where the Company's
registered office is located.
The procedures for convening and conducting the General Meeting of
Shareholders comply with the provisions of the law and provide
shareholders with equal opportunities to participate in the meetings and to
have early access to draft decisions and other materials necessary for
decision-making.
1.6 With a view to ensure the right of shareholders living abroad to
access the information, it is recommended, where possible, that
documents prepared for the general meeting of shareholders in
advance should be announced publicly not only in Lithuanian
language but also in English and/or other foreign languages in
advance. It is recommended that the minutes of the general meeting
of shareholders after the signing thereof and/or adopted decisions
should be made available publicly not only in Lithuanian language but
also in English and/or other foreign languages. It is recommended
that this information should be placed on the website of the company.
Such documents may be published to the extent that their public
disclosure is not detrimental to the company or the company’s
commercial secrets are not revealed.
YES
All information for shareholders and investors is published on the
Company's website and in the information system of the Nasdaq Vilnius
Stock Exchange in Lithuanian and English.
1.7 Shareholders who are entitled to vote should be furnished with
the opportunity to vote at the general meeting of shareholders both in
person and in absentia. Shareholders should not be prevented from
voting in writing in advance by completing the general voting ballot.
YES
The shareholders of the Company may exercise their right to attend the
General Meeting of Shareholders either in person or through a duly
authorized representative. They can also vote in advance in writing by
filling in a general ballot paper.
1.8 With a view to increasing the shareholders’ opportunities to
participate effectively at general meetings of shareholders, it is
recommended that companies should apply modern technologies on
a wider scale and thus provide shareholders with the conditions to
participate and vote in general meetings of shareholders via
electronic means of communication. In such cases the security of
transmitted information must be ensured and it must be possible to
identify the participating and voting person.
NO
The Company does not comply with this Recommendation as the
Company is currently unable to ensure the security of the information
transmitted and to positively establish the identity of the person
participating and voting. In the future, the Company will consider the
possibility to implement this Recommendation.
Consolidated Annual Report 2025
200
1.9 It is recommended that the notice on the draft decisions of the
general meeting of shareholders being convened should specify new
candidatures of members of the collegial body, their proposed
remuneration and the proposed audit company if these issues are
included into the agenda of the general meeting of shareholders.
Where it is proposed to elect a new member of the collegial body, it
is recommended that the information about his/her educational
background, work experience and other managerial positions held (or
proposed) should be provided.
YES
The draft resolutions of the General Meeting of Shareholders, should these
questions be included on the agenda of the General Meeting of
Shareholders, disclose the proposed nominations of new members of the
Board, the proposed remuneration of the Board members, and the
proposed appointment of an audit firm.
The candidate questionnaires, which are made public and included in the
shareholders' meeting materials, include information on the candidates'
education, work experience and other positions held.
1.10 Members of the company’s collegial management body, heads
of the administration or other competent persons related to the
company who can provide information related to the agenda of the
general meeting of shareholders should take part in the general
meeting of shareholders. Proposed candidates to member of the
collegial body should also participate in the general meeting of
shareholders in case the election of new members is included into the
agenda of the general meeting of shareholders.
YES
At the Company’s Annual General Meeting held on 29 August 2025, as
well as at the Extraordinary General Meetings of Shareholders held on 19
March 2025 and 12 August 2025, the Company’s management attended
the meetings in person; therefore, the shareholders participating in person
had the opportunity to ask questions.
Principle 2: Supervisory board
2.1. Functions and liability of the supervisory board
The supervisory board of the company should ensure
representation of the interests of the company and its
shareholders, accountability of this body to the shareholders
and objective monitoring of the company’s operations and its
management bodies as well as constantly provide
recommendations to the management bodies of the company.
The supervisory board should ensure the integrity and
transparency of the company’s financial accounting and control
system.
2.1.1 Members of the supervisory board should act in good faith, with
care and responsibility for the benefit and in the interests of the
company and its shareholders and represent their interests, having
regard to the interests of employees and public welfare.
NOT APPLICABLE
The Company does not have a supervisory board.
2.1.2 Where decisions of the supervisory board may have a different
effect on the interests of the company’s shareholders, the supervisory
board should treat all shareholders impartially and fairly. It should
ensure that shareholders are properly informed about the company’s
strategy, risk management and control, and resolution of conflicts of
interest.
NOT APPLICABLE
2.1.3 The supervisory board should be impartial in passing decisions
that are significant for the company’s operations and strategy.
NOT APPLICABLE
Consolidated Annual Report 2025
201
Members of the supervisory board should act and pass decisions
without an external influence from the persons who elected them.
2.1.4 Members of the supervisory board should clearly voice their
objections in case they believe that a decision of the supervisory
board is against the interests of the company. Independent members
of the supervisory board should: a) maintain independence of their
analysis and decision-making; b) not seek or accept any unjustified
privileges that might compromise their independence.
NOT APPLICABLE
2.1.5 The supervisory board should oversee that the company’s tax
planning strategies are designed and implemented in accordance
with the legal acts in order to avoid faulty practice that is not related
to the long-term interests of the company and its shareholders, which
may give rise to reputational, legal or other risks.
NOT APPLICABLE
2.1.6 The company should ensure that the supervisory board is
provided with sufficient resources (including financial ones) to
discharge their duties, including the right to obtain all the necessary
information or to seek independent professional advice from external
legal, accounting or other experts on matters pertaining to the
competence of the supervisory board and its committees.
NOT APPLICABLE
2.1. Formation of the supervisory board
The procedure of the formation of the supervisory board should
ensure proper resolution of conflicts of interest and effective
and fair corporate governance
2.2.1 The members of the supervisory board elected by the general
meeting of shareholders should collectively ensure the diversity of
qualifications, professional experience and competences and seek
for gender equality. With a view to maintain a proper balance between
the qualifications of the members of the supervisory board, it should
be ensured that members of the supervisory board, as a whole,
should have diverse knowledge, opinions and experience to duly
perform their tasks.
NOT APPLICABLE
2.2.2 Members of the supervisory board should be appointed for a
specific term, subject to individual re-election for a new term in office
in order to ensure necessary development of professional
experience.
NOT APPLICABLE
2.2.3 Chair of the supervisory board should be a person whose
current or past positions constituted no obstacle to carry out impartial
activities. A former manager or management board member of the
company should not be immediately appointed as chair of the
supervisory board either. Where the company decides to depart from
NOT APPLICABLE
Consolidated Annual Report 2025
202
these recommendations, it should provide information on the
measures taken to ensure impartiality of the supervision.
2.2.4 Each member should devote sufficient time and attention to
perform his duties as a member of the supervisory board. Each
member of the supervisory board should undertake to limit his other
professional obligations (particularly the managing positions in other
companies) so that they would not interfere with the proper
performance of the duties of a member of the supervisory board.
Should a member of the supervisory board attend less than a half of
the meetings of the supervisory board throughout the financial year
of the company, the shareholders of the company should be notified
thereof.
NOT APPLICABLE
2.2.5 When it is proposed to appoint a member of the supervisory
board, it should be announced which members of the supervisory
board are deemed to be independent. The supervisory board may
decide that, despite the fact that a particular member meets all the
criteria of independence, he/she cannot be considered independent
due to special personal or company-related circumstances.
NOT APPLICABLE
2.2.6 The amount of remuneration to members of the supervisory
board for their activity and participation in meetings of the supervisory
board should be approved by the general meeting of shareholders.
NOT APPLICABLE
2.2.7 Every year the supervisory board should carry out an
assessment of its activities. It should include evaluation of the
structure of the supervisory board, its work organization and ability to
act as a group, evaluation of the competence and work efficiency of
each member of the supervisory board, and evaluation whether the
supervisory board has achieved its objectives. The supervisory board
should, at least once a year, make public respective information about
its internal structure and working procedures.
NOT APPLICABLE
Principle 3: Management Board
3.1. Functions and liability of the management board
The management board should ensure the implementation of
the company’s strategy and good corporate governance with
due regard to the interests of its shareholders, employees and
other interest groups.
3.1.1 The management board should ensure the implementation of
the company’s strategy approved by the supervisory board if the latter
has been formed at the company. In such cases where the
supervisory board is not formed, the management board is also
responsible for the approval of the company’s strategy.
YES
In April 2020, the Board of the Company approved the Company's strategy,
which is publicly available on the Company's website in Lithuanian and
English.
Consolidated Annual Report 2025
203
In 2021 – 2025, the Board of the Company has submitted reports on the
implementation of the Company's strategy together with the materials of
the General Meeting of Shareholders.
3.1.2. As a collegial management body of the company, the
management board performs the functions assigned to it by the Law
and in the articles of association of the company, and in such cases
where the supervisory board is not formed in the company, it performs
inter alia the supervisory functions established in the Law. By
performing the functions assigned to it, the management board
should take into account the needs of the company’s shareholders,
employees and other interest groups by respectively striving to
achieve sustainable business development.
YES
The Board, as the collegial governing body of the Company, performs the
functions assigned to it by the law and the Articles of Association of the
Company.
In accordance with the requirements of the Law on Companies of the
Republic of Lithuania, the Board, among other functions, also performs
supervisory functions. Board meetings ensure effective oversight of the
company's activities. The duties of this collegial body are in line with those
laid down by Lithuanian law as required for an issuer whose securities are
traded on a regulated market.
In carrying out its functions, the Board takes into account the needs of the
Company, its shareholders, employees and other stakeholders, and has
as its primary objective the creation of a sustainable business.
3.1.3 The management board should ensure compliance with the
laws and the internal policy of the company applicable to the company
or a group of companies to which this company belongs. It should
also establish the respective risk management and control measures
aimed at ensuring regular and direct liability of managers.
YES
The Company's internal policies are approved by the Company's Board,
and their implementation is discussed at Board meetings where the
Company's Board hears reports on the implementation of these policies.
The Company has adopted the following policies:
○ Code of Business Ethics
○ Environmental Policy
○ Policy on Human Rights, equal opportunities (diversity), Non-
Discrimination, Child and Forced Labour
○ Animal Welfare Policy
○ Suppliers' Code of Conduct
○ Policy on Prevention on Corruption and Conflicts of Interest
○ Occupational Safety and Health Policy
The Company establishes risk management and control measures to
ensure regular and direct accountability of the management. One such
measure is the appointment of the Company's internal auditor, who is
appointed by the Company's Board and reports directly to the Company's
Audit Committee.
3.1.4 Moreover, the management board should ensure that the
measures included into the
OECD Good Practice Guidance
27
on
Internal Controls, Ethics and Compliance are applied at the company
YES
Please refer to 3.1.3
27
Link to the OECD Good Practice Guidance on Internal Controls, Ethics and Compliance:
https://www.oecd.org/daf/anti-bribery/44884389.pdf
Consolidated Annual Report 2025
204
in order to ensure adherence to the applicable laws, rules and
standards.
3.1.5 When appointing the manager of the company, the
management board should take into account the appropriate balance
between the candidate’s qualifications, experience and competence.
YES
In appointing the Chief Executive Officer of the Company, the Board aims
to ensure an appropriate balance of qualifications, experience and
competence.
3.1 Formation of the management board
3.2.1 The members of the management board elected by the
supervisory board or, if the supervisory board is not formed, by the
general meeting of shareholders should collectively ensure the
required diversity of qualifications, professional experience and
competences and seek for gender equality. With a view to maintain a
proper balance in terms of the current qualifications possessed by the
members of the management board, it should be ensured that the
members of the management board would have, as a whole, diverse
knowledge, opinions and experience to duly perform their tasks.
YES,
The members of the Company's Board are elected by the General Meeting
of Shareholders. The members of the Board nominated and elected by the
General Meeting of Shareholders are qualified and competent to perform
their functions and have many years of experience in such activities, as
evidenced by the information on Board members’ education, experience
and other positions held, which is publicly available on the Company’s
website.
3.2.2 Names and surnames of the candidates to become members
of the management board, information on their educational
background, qualifications, professional experience, current
positions, other important professional obligations and potential
conflicts of interest should be disclosed without violating the
requirements of the legal acts regulating the handling of personal data
at the meeting of the supervisory board in which the management
board or individual members of the management board are elected.
In the event that the supervisory board is not formed, the information
specified in this paragraph should be submitted to the general
meeting of shareholders. The management board should, on yearly
basis, collect data provided in this paragraph on its members and
disclose it in the company’s annual report.
YES
The questionnaires of candidates for the Board, containing information
about their education, qualifications, professional experience, positions
held and involvement in other companies, are presented together with the
draft resolutions to the General Shareholders' Meeting and are published
as a material event notice so that shareholders can have access to this
information before the General Meeting.
These details about the current members of the Board are also provided in
the Company's Annual Management Report each year.
3.2.3 All new members of the management board should be
familiarized with their duties and the structure and operations of the
company.
YES
Upon election, all new members of the Board are briefed on the Company's
activities and their main responsibilities, as well as on the legal
requirements. Each year, a tour of the subsidiaries is organized for Board
members to enable the Board to gain a better insight into the Company's
operations.
Board members are also regularly informed about changes in legislation
and other developments that may have an impact on the company's
operations.
3.2.4 Members of the management board should be appointed for a
specific term, subject to individual re-election for a new term in office
in order to ensure necessary development of professional experience
and sufficiently frequent reconfirmation of their status.
YES
All Board members are appointed for a fixed term of two years, with the
possibility of individual re-election for another term.
Consolidated Annual Report 2025
205
3.2.5 Chair of the management board should be a person whose
current or past positions constitute no obstacle to carry out impartial
activity. Where the supervisory board is not formed, the former
manager of the company should not be immediately appointed as
chair of the management board. When a company decides to depart
from these recommendations, it should furnish information on the
measures it has taken to ensure the impartiality of supervision.
YES
The Chairman of the Board is the sole owner of the controlling shareholder
of the Company.
The impartiality of the Board is ensured by the fact that the majority (60%)
of the Company's Board members are independent.
3.2.6 Each member should devote sufficient time and attention to
perform his duties as a member of the management board. Should a
member of the management board attend less than a half of the
meetings of the management board throughout the financial year of
the company, the supervisory board of the company or, if the
supervisory board is not formed at the company, the general meeting
of shareholders should be notified thereof.
YES
Based on the independence criteria set out in the legislation and the self-
assessment of the Board members themselves, the Board is composed of
2 dependent members (Kęstutis Juščius and Kristina Daudoravičienė) and
3 independent members (Peter Bryde, Andrej Cyba and Justina Klyviene).
3.2.7 In the event that the management board is elected in the cases
established by the Law where the supervisory board is not formed at
the company, and some of its members will be independent
28
, it
should be announced which members of the management board are
deemed as independent. The management board may decide that,
despite the fact that a particular member meets all the criteria of
independence established by the Law, he/she cannot be considered
independent due to special personal or company-related
circumstances.
YES
Based on the independence criteria set out in the legislation and the self-
assessment carried out by the board members themselves, the board
consists of two dependent members (Kęstutis Juščius and Aleksandras
Šutovičius) and three independent members (Peter Bryde, Andrej Cyba,
and Linas Strėlis).
3.2.8 The general meeting of shareholders of the company should
approve the amount of remuneration to the members of the
management board for their activity and participation in the meetings
of the management board.
YES
The remuneration of the members of the Board is approved by the
Company's General Meeting of Shareholders.
3.2.9 The members of the management board should act in good
faith, with care and responsibility for the benefit and the interests of
the company and its shareholders with due regard to other
stakeholders. When adopting decisions, they should not act in their
personal interest; they should be subject to no-compete agreements
and they should not use the business information or opportunities
related to the company’s operations in violation of the company’s
interests.
YES
To the best of the Company's knowledge, all members of the Board act for
the Company's benefit and with the Company's interests in good faith, and
not their own personal interests or those of third parties. To the best of the
Company's knowledge, the members of the Board do not pursue any
personal interests in their decision-making.
The performance contracts concluded with the members of the Board
contain provisions on the absence of conflict of interest, in addition to
confidentiality and non-competition obligations.
3.2.10 Every year the management board should carry out an
assessment of its activities. It should include evaluation of the
structure of the management board, its work organization and ability
to act as a group, evaluation of the competence and work efficiency
YES
The Board has carried out a self-assessment in 2025. Information on the
structure of the Board is provided in the Company's Annual Report and is
published on the Company's website.
28
For the purposes of this Code, the criteria of independence of the members of the board are interpreted as the criteria of unrelated persons defined in Article 33(7) of the Law on Companies of the Republic of Lithuania.
Consolidated Annual Report 2025
206
of each member of the management board, and evaluation whether
the management board has achieved its objectives. The
management board should, at least once a year, make public
respective information about its internal structure and working
procedures in observance of the legal acts regulating the processing
of personal data.
Principle 4: Rules of procedure of the supervisory board and the
management board of the company
The rules of procedure of the supervisory board, if it is formed
at the company, and of the management board should ensure
efficient operation and decision-making of these bodies and
promote active cooperation between the company’s
management bodies.
4.1 The management board and the supervisory board, if the latter is
formed at the company, should act in close cooperation in order to
attain benefit for the company and its shareholders. Good corporate
governance requires an open discussion between the management
board and the supervisory board. The management board should
regularly and, where necessary, immediately inform the supervisory
board about any matters significant for the company that are related
to planning, business development, risk management and control,
and compliance with the obligations at the company. The
management board should inform he supervisory board about any
derogations in its business development from the previously
formulated plans and objectives by specifying the reasons for this.
NOT APPLICABLE
The Company does not have a Supervisory Board.
4.2 It is recommended that meetings of the company’s collegial
bodies should be held at the respective intervals, according to the
pre-approved schedule. Each company is free to decide how often
meetings of the collegial bodies should be convened but it is
recommended that these meetings should be convened at such
intervals that uninterruptable resolution of essential corporate
governance issues would be ensured. Meetings of the company’s
collegial bodies should be convened at least once per quarter.
YES
Board meetings are convened in accordance with a pre-agreed schedule
and are normally held at least once a month, or by e-mail when urgent
decisions are required.
4.3 Members of a collegial body should be notified of the meeting
being convened in advance so that they would have sufficient time
for proper preparation for the issues to be considered at the meeting
and a fruitful discussion could be held and appropriate decisions
could be adopted. Along with the notice of the meeting being
convened all materials relevant to the issues on the agenda of the
meeting should be submitted to the members of the collegial body.
The agenda of the meeting should not be changed or supplemented
during the meeting, unless all members of the collegial body present
at the meeting agree with such change or supplement to the agenda,
YES
The Board receive a notice about the meeting, the agenda of the meeting
and all materials relating to the matters to be discussed at the meeting in
advance.
The agenda is not normally changed during a meeting unless all members
of the Board are present, or unless the absent members have indicated
that they agree to the change of agenda.
Consolidated Annual Report 2025
207
or certain issues that are important to the company require immediate
resolution.
4.4 In order to coordinate the activities of the company’s collegial
bodies and ensure effective decision-making process, the chairs of
the company’s collegial supervision and management bodies should
mutually agree on the dates and agendas of the meetings and close
cooperate in resolving other matters related to corporate governance.
Meetings of the company’s supervisory board should be open to
members of the management board, particularly in such cases where
issues concerning the removal of the management board members,
their responsibility or remuneration are discussed.
NOT APPLICABLE
The Company does not have a Supervisory Board.
Principle 5: Nomination, remuneration and audit committees
5.1. Purpose and formation of committees
The committees formed at the company should increase the
work efficiency of the supervisory board or, where the
supervisory board is not formed, of the management board
which performs the supervisory functions by ensuring that
decisions are based on due consideration and help organise its
work in such a way that the decisions it takes would be free of
material conflicts of interest.
Committees should exercise independent judgment and
integrity when performing their functions and provide the
collegial body with recommendations concerning the decisions
of the collegial body. However, the final decision should be
adopted by the collegial body.
5.1.1 Taking due account of the company-related circumstances and
the chosen corporate governance structure, the supervisory board of
the company or, in cases where the supervisory board is not formed,
the management board which performs the supervisory functions,
establishes committees. It is recommended that the collegial body
should form the nomination, remuneration and audit committees
29
.
NO
The Company's Board has established an Audit Committee but has not
formed Remuneration or Nomination Committees.
5.1.2 Companies may decide to set up less than three committees.
In such case companies should explain in detail why they have
chosen the alternative approach, and how the chosen approach
corresponds with the objectives set for the three different committees.
YES
The Company does not have Nomination and Remuneration Committees,
as the Board partly covers the functions of these committees in the
exercise of its functions.
The Board of the Company appoints the Chief Executive Officer of the
Company, determines his/her remuneration and makes recommendations
29
The legal acts may provide for the obligation to form a respective committee. For example, the Law on the Audit of Financial Statements of the Republic of Lithuania provides that public-interest entities (including but not limited to public
limited liability companies whose securities are traded on a regulated market of the Republic of Lithuania and/or of any other Member State) are under the obligation to set up an audit committee (the legal acts provide for the exemptions
where the functions of the audit committee may be carried out by the collegial body performing the supervisory functions).
Consolidated Annual Report 2025
208
to the Chief Executive Officer of the Company on the appointment and
remuneration of persons in senior positions.
The Rules of Procedure of the Company's Board stipulate that committees
are to be formed only from members of the Board, however, in the
presence of a five-member Board, the Company does not consider it
expedient to form more than one committee.
5.1.3 In the cases established by the legal acts the functions assigned
to the committees formed at companies may be performed by the
collegial body itself. In such case the provisions of this Code
pertaining to the committees (particularly those related to their role,
operation and transparency) should apply, where relevant, to the
collegial body as a whole.
YES
Please refer to answer 5.1.2.
5.1.4 Committees established by the collegial body should normally
be composed of at least three members. Subject to the requirements
of the legal acts, committees could be comprised only of two
members as well. Members of each committee should be selected on
the basis of their competences by giving priority to independent
members of the collegial body. The chair of the management board
should not serve as the chair of committees.
YES
The Audit Committee consists of 1 dependent and 2 independent members
of the Board. The Chairman of the Audit Committee is independent
member of the Board and not the Chairman of the Board.
5.1.5 The authority of each committee formed should be determined
by the collegial body itself. Committees should perform their duties
according to the authority delegated to them and regularly inform the
collegial body about their activities and performance on a regular
basis. The authority of each committee defining its role and specifying
its rights and duties should be made public at least once a year (as
part of the information disclosed by the company on its governance
structure and practice on an annual basis). In compliance with the
legal acts regulating the processing of personal data, companies
should also include in their annual reports the statements of the
existing committees on their composition, the number of meetings
and attendance over the year as well as the main directions of their
activities and performance.
YES
The functions and duties of the Audit Committee are set out in the
Regulation of Audit Committee approved by the Board of the Company.
The Audit Committee reports regularly to the Board. The above information
on the Audit Committee is published on the Company's website and in the
Annual Report.
5.1.6 With a view to ensure the independence and impartiality of the
committees, the members of the collegial body who are not members
of the committees should normally have a right to participate in the
meetings of the committee only if invited by the committee. A
committee may invite or request that certain employees of the
company or experts would participate in the meeting. Chair of each
committee should have the possibility to maintain direct
communication with the shareholders. Cases where such practice is
to be applied should be specified in the rules regulating the activities
of the committee.
YES
The Audit Committee has the right to invite to its meetings the General
Manager of the Company, member/members of the Management Board,
Chief Financial Officer, employees responsible for finance, accounting and
treasury issues, external auditors and other persons whose participation is
necessary to discuss the issues provided by the Audit Committee
Consolidated Annual Report 2025
209
5.2. Nomination committee
The key functions of the nomination committee should be the
following:
1) to select candidates to fill vacancies in the membership of
supervisory and management bodies and the administration and
recommend the collegial body to approve them. The nomination
committee should evaluate the balance of skills, knowledge and
experience in the management body, prepare a description of the
functions and capabilities required to assume a particular position
and assess the time commitment expected;
2) assess, on a regular basis, the structure, size and composition of
the supervisory and management bodies as well as the skills,
knowledge and activity of its members, and provide the collegial body
with recommendations on how the required changes should be
sought;
3) devote the attention necessary to ensure succession planning.
NOT APPLICABLE
5.2.2 When dealing with issues related to members of the collegial
body who have employment relationships with the company and the
heads of the administration, the manager of the company should be
consulted by granting him/her the right to submit proposals to the
Nomination Committee.
NOT APPLICABLE
5.1. Remuneration committee
The main functions of the remuneration committee should be as
follows:
1) submit to the collegial body proposals on the remuneration policy
applied to members of the supervisory and management bodies and
the heads of the administration for approval. Such policy should
include all forms of remuneration, including the fixed-rate
remuneration, performance-based remuneration, financial incentive
schemes, pension arrangements and termination payments as well
as conditions which would allow the company to recover the amounts
or suspend the payments by specifying the circumstances under
which it would be expedient to do so;
2) submit to the collegial body proposals regarding individual
remuneration for members of the collegial bodies and the heads of
the administration in order to ensure that they would be consistent
with the company’s remuneration policy and the evaluation of the
performance of the persons concerned;
NOT APPLICABLE
Consolidated Annual Report 2025
210
3) review, on a regular basis, the remuneration policy and its
implementation.
5.4. Audit committee
5.4.1 The key functions of the audit committee are defined in the legal
acts regulating the activities of the audit committee
30
.
YES
The core functions and duties of the Company's Audit Committee are
consistent with those set out in this Recommendation.
5.4.2 All members of the committee should be provided with detailed
information on specific issues of the company’s accounting system,
finances and operations. The heads of the company’s administration
should inform the audit committee about the methods of accounting
for significant and unusual transactions where the accounting may be
subject to different approaches.
YES
The Regulation of Audit Committee provides for the right of Audit
Committee members to receive this information, and the Audit Committee
Members are presented with it.
5.4.3 The audit committee should decide whether the participation of
the chair of the management board, the manager of the company, the
chief finance officer (or senior employees responsible for finance and
accounting), the internal and external auditors in its meetings is
required (and, if required, when). The committee should be entitled,
when needed, to meet the relevant persons without members of the
management bodies present.
YES
Please refer to answer 5.1.6.
5.4.4. The audit committee should be informed about the internal
auditor’s work program and should be furnished with internal audit
reports or periodic summaries. The audit committee should also be
informed about the work program of external auditors and should
receive from the audit firm a report describing all relationships
between the independent audit firm and the company and its group.
YES
The internal auditor and external auditors present their work plans and
reports to the Audit Committee on a regular basis.
5.4.5 The audit committee should examine whether the company
complies with the applicable provisions regulating the possibility of
lodging a complaint or reporting anonymously his/her suspicions of
potential violations committed at the company and should also ensure
that there is a procedure in place for proportionate and independent
investigation of such issues and appropriate follow-up actions.
YES
The functions of the Company's Audit Committee, as set out in the
Regulation of Audit Committee approved by the Board, comply with the
indicated Recommendation.
5.4.6 The audit committee should submit to the supervisory board or,
where the supervisory board is not formed, to the management board
its activity report at least once in every six months, at the time that
annual and half-yearly reports are approved.
YES
The Committee informs the Company's Board about its activities and
performance results at least once per six months.
Principle 6: Prevention and disclosure of conflicts of interest
30
Issues related to the activities of audit committees are regulated by Regulation No. 537/2014 of the European Parliament and the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities, the
Law on the Audit of Financial Statements of the Republic of Lithuania, and the Rules Regulating the Activities of Audit Committees approved by the Bank of Lithuania.
Consolidated Annual Report 2025
211
The corporate governance framework should encourage
members of the company’s supervisory and management
bodies to avoid conflicts of interest and ensure a transparent
and effective mechanism of disclosure of conflicts of interest
related to members of the supervisory and management bodies.
Any member of the company’s supervisory and management body
should avoid a situation where his/her personal interests are or may
be in conflict with the company’s interests. In case such a situation
did occur, a member of the company’s supervisory or management
body should, within a reasonable period of time, notify other members
of the same body or the body of the company which elected him/her
or the company’s shareholders of such situation of a conflict of
interest, indicate the nature of interests and, where possible, their
value.
YES
This Recommendation is respected, as ensured by the provisions of the
Board's Rules of Procedure, which stipulate that Board members must
avoid any conflict of interest and, in the event of such a conflict,
immediately inform the Board of the conflict.
To the best of the Company's knowledge, there have been no cases of
conflicts of interest involving Board members or CEO to this date.
Principle 7: Remuneration policy of the company
The remuneration policy and the procedure for review and
disclosure of such policy established at the company should
prevent potential conflicts of interest and abuse in determining
remuneration of members of the collegial bodies and heads of
the administration, in addition it should ensure the publicity and
transparency of the company’s remuneration policy and its
long-term strategy.
7.1 The company should approve and post the remuneration policy
on the website of the company; such policy should be reviewed on a
regular basis and be consistent with the company’s long-term
strategy.
YES
The Company's Remuneration Policy was approved by the General
Meeting of Shareholders of 30 April 2020 and updated on 30 May 2024,
the Policy is published on the Company's website.
The Remuneration Policy is reviewed by the Board every four years and is
submitted for approval for the annual general meeting. The Remuneration
Policy may be amended having assessed the economic situation in the
market, the financial results of the company, changes in the legislation
governing the remuneration payment.
The Company's Remuneration Policy applies to the CEO and the Board.
The Remuneration policy of the Company is aligned with the approved
strategy of the Company.
7.2 The remuneration policy should include all forms of remuneration,
including the fixed-rate remuneration, performance-based
remuneration, financial incentive schemes, pension arrangements
and termination payments as well as the conditions specifying the
cases where the company can recover the disbursed amounts or
suspend the payments.
YES
The Company's Remuneration Policy covers all forms of remuneration
applied by the Company.
Consolidated Annual Report 2025
212
7.3 With a view to avoid potential conflicts of interest, the
remuneration policy should provide that members of the collegial
bodies which perform the supervisory functions should not receive
remuneration based on the company’s performance.
YES
The remuneration of the members of the Board of is fixed and is approved
by the General Meeting of Shareholders.
7.4 The remuneration policy should provide sufficient information on
the policy regarding termination payments. Termination payments
should not exceed a fixed amount or a fixed number of annual wages
and in general should not be higher than the non-variable component
of remuneration for two years or the equivalent thereof. Termination
payments should not be paid if the contract is terminated due to
inadequate performance.
YES
The Remuneration Policy provides sufficient detail on the CEO's
remuneration policy. The severance pay provisions in the Remuneration
Policy are in line with these Recommendations.
7.5 In the event that the financial incentive scheme is applied at the
company, the remuneration policy should contain sufficient
information about the retention of shares after the award thereof.
Where remuneration is based on the award of shares, shares should
not be vested at least for three years after the award thereof. After
vesting, members of the collegial bodies and heads of the
administration should retain a certain number of shares until the end
of their term in office, subject to the need to compensate for any costs
related to the acquisition of shares.
YES
The Company's Remuneration Policy applies only to the Board and the
Chief Executive Officer.
The Board members, if they are not employees of AUGA group, RAB or
AUGA group RAB directly or indirectly controlled companies, do not
participate in any incentive schemes.
The CEO may be entitled to stock option schemes. The purpose of share
option schemes is to create long-term value for shareholders and to
increase the motivation and loyalty of the CEO to the company.
The Remuneration Policy for the CEO is in line with these
Recommendations.
7.6 The company should publish information about the
implementation of the remuneration policy on its website, with a key
focus on the remuneration policy in respect of the collegial bodies and
managers in the next and, where relevant, subsequent financial
years. It should also contain a review of how the remuneration policy
was implemented during the previous financial year. The information
of such nature should not include any details having a commercial
value. Particular attention should be paid on the major changes in the
company’s remuneration policy, compared to the previous financial
year.
YES
Please refer to answer 7.1.
In accordance with the statutory procedure, the Company published its
Remuneration Report together with the Annual Report.
7.7 It is recommended that the remuneration policy or any major
change of the policy should be included on the agenda of the general
meeting of shareholders. The schemes under which members and
employees of a collegial body receive remuneration in shares or
share options should be approved by the general meeting of
shareholders.
YES
The Company's Remuneration Policy is approved and amended by the
General Meeting of Shareholders.
The Company's rules for granting stock options are approved and
amended by the General Meeting of Shareholders.
Principle 8: Role of stakeholders in corporate governance
The corporate governance framework should recognize the
rights of stakeholders entrenched in the laws or mutual
agreements and encourage active cooperation between
companies and stakeholders in creating the company value,
Consolidated Annual Report 2025
213
jobs and financial sustainability. In the context of this principle
the concept “stakeholders” includes investors, employees,
creditors, suppliers, clients, local community and other persons
having certain interests in the company concerned.
8.1 The corporate governance framework should ensure that the
rights and lawful interests of stakeholders are protected.
YES
The Company respects all the rights of stakeholders protected by law,
which enables stakeholders to participate in the management of the
company. More information on this in provided in the Company's
Sustainable Business Report.
8.2 The corporate governance framework should create conditions
for stakeholders to participate in corporate governance in the manner
prescribed by law. Examples of participation by stakeholders in
corporate governance include the participation of employees or their
representatives in the adoption of decisions that are important for the
company, consultations with employees or their representatives on
corporate governance and other important matters, participation of
employees in the company’s authorized capital, involvement of
creditors in corporate governance in the cases of the company’s
insolvency, etc.
YES
Senior management staff attend meetings of the Company's Board. This
enables the Company's employees to have influence on decisions
important for the Company.
In the cases provided for by law, the Company would ensure that
stakeholders are able to participate in the management of the Company.
8.3 Where stakeholders participate in the corporate governance
process, they should have access to relevant information.
YES
When the Company's employees participate in Board meetings, they are
provided with all necessary information relating to agenda items.
8.4 Stakeholders should be provided with the possibility of reporting
confidentially any illegal or unethical practices to the collegial body
performing the supervisory function.
YES
The Company operates a special e-mail address, etika@auga.lt, through
which any stakeholder can anonymously report illegal or unethical
practices. If such notifications were received, the Board would be informed
immediately.
Principle 9: Disclosure of information
The corporate governance framework should ensure the timely
and accurate disclosure of all material corporate issues,
including the financial situation, operations and governance of
the company.
9.1 In accordance with the company’s procedure on confidential
information and commercial secrets and the legal acts regulating the
processing of personal data, the information publicly disclosed by the
company should include but not be limited to the following:
YES
Please refer to each individual point separately.
9.1.1 operating and financial results of the company;
YES
Disclosed on the Company's website and in the semi‑annual and annual
management reports.
9.1.2 objectives and non-financial information of the company;
YES
Disclosed quarterly in and in the semi‑annual and annual management
reports.
9.1.3 persons holding a stake in the company or controlling it directly
and/or indirectly and/or together with related persons as well as the
YES
Disclosed on the Company's website and in the semi‑annual and annual
management reports..
Consolidated Annual Report 2025
214
structure of the group of companies and their relationships by
specifying the final beneficiary;
9.1.4 members of the company’s supervisory and management
bodies who are deemed independent, the manager of the company,
the shares or votes held by them at the company, participation in
corporate governance of other companies, their competence and
remuneration;
YES
Disclosed on the Company's website and in the semi‑annual and annual
management reports.
9.1.5 reports of the existing committees on their composition, number
of meetings and attendance of members during the last year as well
as the main directions and results of their activities;
YES
Depending on the nature of the information, this information is disclosed
on the Company's website and/or in the semi‑annual and/or annual
management reports.
9.1.6 potential key risk factors, the company’s risk management and
supervision policy;
YES, except that The Company
does not have a risk
management and monitoring
policy
Risk factors are disclosed in Interim and Annual Reports.
The Company does not have a risk management and monitoring policy.
9.1.7 the company’s transactions with related parties;
YES
Disclosed on the Company's website and in the semi‑annual and annual
management reports.
9.1.8 main issues related to employees and other stakeholders (for
instance, human resource policy, participation of employees in
corporate governance, award of the company’s shares or share
options as incentives, relationships with creditors, suppliers, local
community, etc.);
YES
Disclosed on the Company's website and in the semi‑annual and annual
management reports.
9.1.9 structure and strategy of corporate governance;
YES
Disclosed on the Company's website and in the semi‑annual and annual
management reports.
9.1.10 initiatives and measures of social responsibility policy and anti-
corruption fight, significant current or planned investment projects.
This list is deemed minimum and companies are encouraged not to
restrict themselves to the disclosure of information included into this
list. This principle of the Code does not exempt companies from their
obligation to disclose information as provided for in the applicable
legal acts.
YES
Disclosed quarterly in the semi‑annual and annual management reports.
9.2 When disclosing the information specified in paragraph 9.1.1 of
recommendation 9.1, it is recommended that the company which is a
parent company in respect of other companies should disclose
information about the consolidated results of the whole group of
companies.
YES
Information is disclosed about the consolidated results of the whole group
of companies.
9.3 When disclosing the information specified in paragraph 9.1.4 of
recommendation 9.1, it is recommended that the information on the
professional experience and qualifications of members of the
company’s supervisory and management bodies and the manager of
the company as well as potential conflicts of interest which could
affect their decisions should be provided. It is further recommended
YES
Information is disclosed.
Consolidated Annual Report 2025
215
that the remuneration or other income of members of the company’s
supervisory and management bodies and the manager of the
company should be disclosed, as provided for in greater detail in
Principle 7.
9.4 Information should be disclosed in such manner that no
shareholders or investors are discriminated in terms of the method of
receipt and scope of information. Information should be disclosed to
all parties concerned at the same time.
YES
The Company provides information to shareholders, investors and stock
exchanges to the same extent and simultaneously in the Lithuanian and
English languages and makes it available to the public in both Lithuanian
and English on its website. It is also publicly announced in the Nasdaq
Vilnius stock exchange system in Lithuanian and English
Principle 10: Selection of the company’s audit firm
The company’s audit firm selection mechanism should ensure
the independence of the report and opinion of the audit firm.
10.1 With a view to obtain an objective opinion on the company’s
financial condition and financial results, the company’s annual
financial statements and the financial information provided in its
annual report should be audited by an independent audit firm.
YES
An independent audit firm audits the consolidated set of annual financial
statements of the Company and its group of companies in accordance with
the International Financial Reporting Standards applicable in the European
Union.
The audit firm also conducts a review of the Annual Report.
10.2 It is recommended that the audit firm would be proposed to the
general meeting of shareholders by the supervisory board or, if the
supervisory board is not formed at the company, by the management
board of the company.
YES
The nomination of the audit firm is proposed to the General Meeting of
Shareholders by the Board of the Company.
10.3 In the event that the audit firm has received remuneration from
the company for the non-audit services provided, the company should
disclose this publicly. This information should also be available to the
supervisory board or, if the supervisory board is not formed at the
company, by the management board of the company when
considering which audit firm should be proposed to the general
meeting of shareholders.
YES
The fees for audit services are approved by the General Meeting of
Shareholders.
During 2025, the Company’s auditor did not receive any remuneration from
the Company (or its group companies) for the provision of non-audit
services.
Consolidated Annual Report 2025
216
Confirmation of Responsible Persons
The responsible persons, Chief Executive Officer Laurynas Miškinis and Chief Financial Officer Kristupas Baranauskas, confirm that, to the best of their knowledge, for the preparation
and presentation of the 2025 financial statements, management report, consolidated financial statements and consolidated management report:
1. The financial statements are true and fair: The financial statements of the issuer for the reporting period and the consolidated financial statements of the group of
companies, prepared in accordance with the applicable accounting standards, fairly reflect the assets, liabilities, financial position, profit or loss and cash flows.
2. The management report is correct: The consolidated management report of the group of companies fairly reviews the business development and performance, provides a
description of the situation and the significant risks and uncertainties faced. The information on sustainability issues has been prepared in accordance with the European
Sustainability Reporting Standards and in accordance with the provisions implementing Article 8(4) of Regulation (ES) 2020/852 of the European Parliament and of the
Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (ES) 2019/2088.
Chief Executive Officer Laurynas Miškinis
Chief Financial Officer Kristupas Baranauskas
April 30, 2026
RegCodeVATCodeLTRegisterofLegalEntitiesoftheRepublicofLithuaniaMemberofGrantThorntonInternationalLtd
GrantThorntonBalticUAB
Vilnius
|Upėsg.21-1|08128Vilnius|Lietuva|info@lt.gt.com
Kaunas|Jonavosg.60C|44192Kaunas|Lietuva|kaunas@lt.gt.com
Klaipėda|Taikospr.52c|91184Klaipėda|Lietuva|klaipeda@lt.gt.com
T+3705 2127856|www.grantthornton.lt
IndependentPractitioners'LimitedAssuranceReportonAUGAGroup,ABentityunder restructuring
consolidatedSustainabilityStatement
TotheManagementofAUGAGroupAB
Limitedassuranceconclusion
Wehaveperformedalimitedassuranceengagementontheconsolidatedsustainabilityinformationof AUGA
Group, AB entity under restructuring (hereinafter – the Group) included in section the Sustainability report
(hereinafter–theSustainabilityStatement)oftheConsolidatedManagementReportasat31December2025
andfor the yearended,inorder to determine whetherit has been prepared in accordancewiththeLawon
Reporting by Undertakings and Groups of Undertakings of the Republic of Lithuania and the European
SustainabilityReportingStandards(ESRS).
Basedontheproceduresperformedandtheevidenceobtained,nothinghascometoourattentionthatcauses
ustobelievethattheGroup’sSustainabilityStatementasatandfortheyearended31December 2025isnot,
inall material respects, prepared in accordance with the Law on Reporting by Undertakings and Groups of
UndertakingsoftheRepublicofLithuania,including:
x compliancewiththeEuropeanSustainabilityReportingStandards(ESRS),includingthattheprocess
carriedoutbytheGrouptoidentifytheinformationdisclosedintheSustainabilityStatement(hereinafter
– the Process) is in accordance with the description provided in subsection „5.5 Double Materiality
AssessmentofSustainabilityCriteria“withinnote„5.SustainabilityReport“and
x complianceofthedisclosureprovided inthesubsectionunder„6.1Taxonomy Review“withinnote6.
Environment“oftheSustainabilityStatementwithArticle8ofRegulation(EU)2020/852(hereinafter –
theTaxonomyRegulation).
OurconclusionontheSustainabilityStatementdoesnotcoveranyotherinformationpresented togetherwith
the Sustainability Statement, including the Consolidated and Separate Financial Statements and the
ConsolidatedManagementReportfortheyearended31December2025.
Basisforconclusion
We performed our limited assurance engagement on the Sustainability Statement in accordance with
International Standard onAssurance Engagements (ISAE) 3000 (Revised) “Assurance Engagements Other
thanAuditsorReviewsofHistoricalFinancialInformation”,issuedbytheInternationalAuditingandAssurance
Standards Board(IAASB). Our responsibilities under this standard are further described in thesection “Our
Responsibility”ofourconclusion.
WecompliedwiththeindependenceandotherethicalrequirementssetoutintheInternationalCodeofEthics
for Professional Accountants (including International Independence Standards), issued by the International
Ethics Standards Board for Accountants (IESBA). (IESBA Code). We have also fulfilled our other ethical
responsibilitiesinaccordancewiththeLawonAuditofFinancialStatementsandOtherAssuranceServicesof
theRepublicofLithuaniaandtheIESBACode.
OurfirmappliesInternationalStandardonQualityManagement1(ISQM1),“QualityManagementforFirmsthat
PerformAuditsorReviewsofFinancial Statements,orOtherAssuranceor RelatedServices Engagements”,
issuedbytheIAASB.Underthisstandard,thefirmisrequiredtodesign,implement,andoperateasystemof
quality management, including policies and procedures related to compliance with ethical requirements,
professionalstandards,andapplicablelegalandregulatoryrequirements.
Webelievethattheevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourconclusion.
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InherentlimitationsinthepreparationoftheSustainabilityStatement
Whenprovidingforward-lookinginformationinaccordancewithESRS,theGroup'smanagementisrequiredto
prepare such information based on disclosed assumptions about potential future events andpossible future
actionsoftheGroup.Itislikelythatactualresultswilldiffer,asanticipatedeventsoftendonotoccurasexpected.
IndeterminingthedisclosuresintheSustainabilityReport,theGroup'smanagementinterpretsundefinedlegal
and other concepts. These undefined legal and other concepts may be subject to varying interpretations,
includingintermsoflegalcompliance,andarethereforeinherentlyuncertain.
Management’sresponsibilitiesfortheSustainabilityStatement
TheGroup’smanagementisresponsiblefordesigning,implementing,andmaintainingaprocesstoidentifythe
informationreportedintheSustainabilityStatementinaccordancewiththeESRS,andfordisclosingthisprocess
in the subsection „5.5 Double MaterialityAssessment of Sustainability Criteria“ within note „5. Sustainability
Report“oftheSustainabilityStatement.Thisresponsibilityincludes:
x understandingthecontextinwhichtheGroup’sactivitiesandbusinessrelationshipstakeplace,aswell
asidentifyingtherelevantaffectedstakeholders;
x identifyingactualandpotential(bothnegativeandpositive)impactsrelatedtosustainabilitymatters,as
wellasrisksandopportunitiesthataffectorcouldreasonablybeexpectedtoaffecttheGroup’sfinancial
position,financialperformance,cashflows,accesstofinance,orcostofcapitalintheshort,medium,or
longterm;
x assessing the materiality of the identified impacts, risks, and opportunities related to sustainability
mattersbyselectingandapplyingappropriatethresholds;and
x developingmethodologiesandmakingassumptionsthatarereasonableinthecircumstances.
In addition the Group’s management is responsible for the preparation of the Sustainability Statement in
accordancewiththeLawonReportingbyUndertakingsandGroupsofUndertakingsoftheRepublicofLithuania,
including:
x compliancewiththeESRS;
x thepreparationofthedisclosurepresentedininthesubsectionunder„6.1TaxonomyReview“within
note 6. Environment“ in accordance with Article 8 of Regulation (EU) 2020/852 (hereinafter – the
TaxonomyRegulation);and
x the design, implementation and maintenance of such internal controls as the Group's management
deemsnecessarytoenablethepreparationoftheSustainabilityStatementthatisfreefrom material
misstatement,whetherduetofraudorerror;and
x theselectionandapplicationofappropriatesustainabilityreportingmethods,aswellasthedevelopment
ofassumptionsandestimatesrelatedtoindividualsustainabilitydisclosuresthatarereasonableinthe
circumstances;
x themakingofjudgmentsandestimatesthatarereasonableinthecircumstances;
x thepreventionanddetectionoffraud;
x the selection of the content of the Sustainability Statement, including the identification of and
engagementwithintendedusersinordertounderstandtheirinformationneeds;
x thesettingof targets,goals, andotherperformance indicators, and theimplementationofactions to
achievesuchtargets,goals,andperformanceindicators;
x thesupervisionofotherpersonnelinvolvedinthepreparationoftheSustainabilityStatement.
Those charged with governance are responsible for overseeing the process of preparing the Group's
SustainabilityStatement.
Ourresponsibilities
Ourengagementistoplanandperformtheassuranceengagementtoobtainlimitedassuranceonwhetherthe
Sustainability Statement is freefrom material misstatement, whether due to fraud or error, and to issue our
limitedassuranceconclusiontothe Group’smanagement.Misstatements,whetherdueto fraudorerror,are
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considered material if it is reasonable to expect that, individually or in aggregate, they could influence the
decisionsofuserstakenbasedontheSustainabilityStatementasawhole.
OurresponsibilityrelatedtotheProcessappliedtotheSustainabilityStatement:
x toobtainanunderstandingoftheProcess,butnotforthepurposeofexpressingaconclusiononthe
effectivenessoftheProcess,includingtheresultsoftheProcess;and
x to design and perform procedures to evaluate whether the Process is consistent with the Group’s
descriptionoftheProcessasdisclosedinthesubsectionunder„6.1TaxonomyReview“withinnote6.
Environment“.
OurotherresponsibilitiesrelatedtotheSustainabilityStatementinclude:
x to obtain an understanding of the Group’s control environment, processes and information systems
relevanttothepreparationoftheSustainabilityStatement,butwithoutassessingthedesignofspecific
controlactivities,obtainingevidenceabouttheirimplementation,ortestingtheiroperatingeffectiveness;
x toidentifydisclosuresinwhichmaterialmisstatementsduetofraudorerrorcouldarise;and
x to design and perform procedures responsive to those Sustainability Statement disclosures where
material misstatements could arise.The risk of not detectinga materialmisstatement resultingfrom
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions,misrepresentations,ortheoverrideofinternalcontrols.
Summaryoftheworkweperformedasthebasisforourconclusion
The limited assurance engagement involves performing procedures to obtain evidence regarding the
complianceoftheSustainabilityStatement.Wedesignedandperformedourprocedurestoobtainsufficientand
appropriateevidencetoprovideabasisforourconclusionontheSustainabilityStatement.Thenature,timing,
and extent of the procedures depended on our understanding of the Sustainability Statement and other
engagementcircumstances,includingtheidentificationofdisclosureswherematerialmisstatementsmayarise
due to fraud or error. Throughout the engagement, we exercised professional judgment and maintained
professionalskepticism.
InperformingthelimitedassuranceproceduresrelatedtotheProcess,we:
x ObtainedanunderstandingoftheProcessby:
✓ makinginquiriestounderstandthesourcesofinformationusedbytheGroup’smanagement(e.g.,
stakeholderengagement,businessplans,andstrategydocuments);and
✓ reviewingtheGroup’sinternaldocumentationoftheProcess;and
x EvaluatedwhethertheevidenceobtainedthroughourproceduresregardingtheProcesswasconsistent
withthedescriptionoftheProcessdisclosedinthesubsectionunder„6.1TaxonomyReview“withinnote
6.Environment“.
InperformingthelimitedassuranceproceduresrelatedtotheSustainabilityStatement,we:
x obtained an understanding of the Group’s reporting processes related to the preparation of the
SustainabilityStatementby:
✓ making inquiries to understand the Group’s reporting process related to the preparation of the
SustainabilityStatement;
✓ assessing the data governance processes, information systems, and working methods used to
collectandconsolidatetheSustainabilityStatementdisclosures;and
x evaluated whether the material information identified through the Process was included in the
SustainabilityStatement;
x evaluated whether the structure and presentation of the Sustainability Statement complied with the
ESRS;
x madeinquirieswithrelevantpersonneland performedanalyticalprocedures on selecteddisclosures
withintheSustainabilityStatement;
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x performed detailed assurance procedures on a sample basis for selected disclosures in the
SustainabilityStatement;
x obtainedevidenceregardingthemethods,assumptions,anddatausedinpreparingmaterialestimates
andforward-lookinginformation,andhowthosemethodswereapplied;
x obtained an understanding of the process for identifying taxonomy-eligible and taxonomy-aligned
economicactivities,andthecorrespondingdisclosuresintheSustainabilityStatement;
x performedotherproceduresrelatedtoEUtaxonomydisclosures.
Thenature,timing,andextentoftheproceduresperformedinalimitedassuranceengagement aredifferent
from,andlessextensivethan,thoserequiredinareasonableassuranceengagement.Asaresult,thelevelof
assurance obtained inalimitedassuranceengagement issubstantiallylower thanthe levelthatwouldhave
beenobtainedhadareasonableassuranceengagementbeenperformed.
Certifiedauditor
Arvydas Ziziliauskas
Auditor’scertificationNo. 000467
April 30, 2026
Jonavos str. 60C, Kaunas
Grant Thornton Baltic UAB
Auditcompany’scertification No. 001513