## PERCEnTAGE OF OVERALL SALES FROM OuR bRAnDS 

Our brands are one of our core strengths. Consequently, most of our sales are of our branded products. We measure the percentage of our sales from our brands over a rolling 52-week period, with the goal to keep it at 80%. In 2011, our brand sales were 79% of total sales. In 2012, we anticipate 1 the percentage of overall sales from our brands will be similar in 2012, including the Icelandic USA Acquisition. 

2.2 OUR ORgANIzATION 

## PRODuCTIVITy 

We have seven manufacturing plants, including six we own and one that we lease, each with capacity for growth. We measure throughput, pounds produced per working hour, and pounds of production on a rolling 12-month basis to ensure optimum productivity and plant utilization. In 2009, we invested in a high-speed production line for our Portsmouth plant, which contributed to annual cost savings and improved our long-term profitability. We are continually looking for opportunities to invest in projects for our plants that have a quick financial payback on the initial capital investment, with the goal of reducing operating costs. As a result of the December 2011 acquisition we now have a primary processing operation in China. 

## CuSTOMER SERVICE 

Our strong customer relationships are a competitive strength. To preserve them, we must consistently strive to exceed customer expectations. To that end, we measure case fill rates, our ability to achieve at least 98.5% purchase order fulfillment is at the top of the industry. For 2011, our purchase order fulfillment, measured by number of cases of products shipped compared to what was ordered, was 96.8% in Canada and 97.6% in the U.S. Our performance in Canada in 2010 was considerably below expectations due to supply issues for a number of commodity products, especially shrimp, salmon, scallops and haddock, but we were able to improve customer service during 2011. Order fill rates for value-added products consistently exceed our targets. 

## PEOPLE 

We are building a high-performance organization by investing in our people. We intend to develop our future leaders from within, and thus we are focused on increasing individual capacity for leadership and track the ratio of internal hires to external hires. We adopted and implemented a training and development plan in 2010 for all employees, and the program continued in earnest in 2011 and will be continued in 2012. 

2.3 gROw ThROUgh INNOVATION 

## OVERALL SALES InCREASES 

Global procurement means that we can access any species that meets consumer tastes. In addition, we have become experts in product development. Overall sales increases provide us an indication on how successful our ideas are. We aim to achieve at least a 5% increase in sales year-over- year. In 2011, our sales increased by 16.8% in domestic dollars, resulting from strong organic growth and the Viking Acquisition. Excluding Viking and the Icelandic USA Acquisitions, sales in domestic currency increased 9.0%, compared with our 5.0% target. In terms of volume, sales in 2011 increased 13.6% (4.3% excluding Viking and the Icelandic USA Acquisitions). We expect 1  volume in 2012 to increase, but higher seafood costs, which are expected in 2012, will require us to increase selling prices for most products. Increased prices are coming at a time when retail customers are pushing back strongly against price increases, and given this environment, there is a risk that retailers in particular will not allow us to increase costs. If price increases are not implemented, profitability for 2012 may 1  be adversely affected. Conversely, if the price increases are successfully implemented, this may 1  result in a decrease in sales volume as consumers look to competing proteins. 

## SALES FROM nEW PRODuCTS 

Maintaining our benchmark sales from new products tells us that we are renewing our product line in a sustainable way. We measure annual sales and profits from new products to provide us with information as to our success in reaching consumers with new and consistently reliable food choices. In 2011, sales from new products launched in the previous 24 months were approximately 14% of our sales. 

