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As a consumer-driven sales and marketing company, we focus on matching supply to demand. Procuring seafood on global markets allows us to provide products based on consumer preferences. North Americans want good taste, excellent value, and high-quality products. They are looking for healthier and more convenient foods. They want a variety of premium, restaurant-quality food at home. Consumers increasingly choose seafood, as it matches these criteria. 

In addition to organic growth, we grow by acquisition. Our acquisition criteria are strict. The target business must be complementary to frozen seafood, and must leverage our existing leading brands, strong customer relationships, marketing and logistics expertise, and product development expertise. The Viking and Icelandic USA Acquisitions were aligned to these criteria. 

We expect seafood will continue to be a popular choice for consumers, and we expect 1  demand to increase for our products. While many consumers tended to be more cost- conscious in 2010 and 2011, dampening our food service sales, we expect 1  that cost-conscious consumers will eat away from home more in 2012, increasing sales in this channel. We also expect 1  retail sales in both Canada and the U.S. to increase in 2012 due to new products being offered and promotional efforts. 

## Strategic Goals for 2011 

Our two objectives for 2011 were focused on 1) Profitable Growth; and 2) Sustainability. 

## PROFITAbLE GROWTH 

This goal included: 

a) Internal growth by improving our Adjusted EBITDA (as defined on page 37) on existing business by 5% annually. In light of cost increases experienced for raw material and energy in 2011, we needed to generate top-line growth as well as investing in our facilities to lower costs to be successful. In 2011, excluding the Viking and Icelandic USA Acquisitions, we increased Adjusted EBITDA by 4.6%. 

b) Acquisitions and related synergies, with a focus on accretive acquisitions in our core business. In late 2010, we completed the Viking Acquisition. By April 4, 2011, we completed the integration of the Viking operations into our U.S. operations. The integration effort went smoothly, did not impact customer service, and strengthened the organization. On December 19, 2011, we acquired the U.S. subsidiary and Asian procurement operations of Icelandic Group h.f., one of the largest suppliers of value-added seafood to the U.S. food service market. As the Icelandic USA Acquisition was completed late in 2011, the focus of 2012 will be the successful integration of this business within our U.S. operations. 

c) Growth opportunities in emerging economies with growing middle-class consumption. Our initial focus is Mexico where a growing middle class and expanding supermarket distribution are leading to growth in frozen seafood consumption. We are also taking the first steps into offering products in South America. 

## SuSTAInAbILITy 

We developed a three-year plan in 2010 to achieve our goal in this area. We developed reporting systems to be able to report to our customers on the status of certification of all the products they purchase from us. We also publicly announced that we made a commitment to source all of our seafood from certified sustainable or responsible fisheries and aquaculture farms by the end of 2013. 

With this commitment, we will require wild-caught seafood and farmed products to either come from fisheries and aquaculture farms certified as sustainable by the Marine Stewardship Council (MSC), the Global Aquaculture Alliance’s (GAA) Best Aquaculture Practices (BAP) program and the Aquaculture Stewardship Council (ASC), or require those suppliers not certified to be on a clear, defined path toward being sustainable and capable of documenting measurable improvements. 

We are committed to our goal of doing business only with suppliers who share our vision of sourcing seafood responsibly, and with a dedication to environmental stewardship to ensure that our natural resources are available for generations to follow. This proactive, ongoing effort will include engaging with our suppliers in projects that make the long-term viability of these farms and fisheries possible. 

For those fisheries that are not under assessment by MSC, we will ensure that they are “responsible” fisheries. This means those fisheries must use “best in class” methodologies to demonstrate documented improvements in fishing practices as reported by FishSource™ (www.FishSource.org) or evaluated by an equivalent standard. For those fisheries that have made sufficient improvements to enter into the MSC program, we will require them to enter the full MSC assessment process. 

