2012 Annual Report Australis Seafood S.A

2012 ANNUAL REPORT AUSTRALIS SEAFOOD S.A. ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Contents

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Anticipation Anticipating events, being visionary and combining the energy of a young company with the experience of those who are part of it, have been the strengths that distinguish us as a company. OMPANY In 2012 we stood out for being the first Chilean Company to secure the Global G.A.P. C Certification. This recognizes our valuable know-how and passion for excellence. O U R ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

WE ARE WELL AWARE OF THE UNIQUE STRENGTHS OF OUR COMPANY. THESE WILL ALLOW US TO RECOVER LOST GROUND QUICKLY.

Dear shareholders, I am addressing you characterizes this industry, Australis Seafoods among which long chain polyunsaturated to report that in June 2012, Australis of decisions that lead to oversupply. to present Australis Seafoods S.A.’s 2012 was therefore well prepared, and continues fatty acids (omega 3) stand out. The market Seafoods S.A. was recognized as the best In this new phase, the Company and its Balance Sheet and Annual Report. to be well prepared, to face contingencies recognizes these attributes and, despite the salmon producing company by the 2012 management led by the Board, will have the In 2012 the Company faced a big challenge like those faced last year. We have a strong much larger global production in 2012, EVA Ranking prepared by Econsult. This financing required to continue to implement as the aquaculture industry was hit by the business plan that focuses, among other demanded 22% more Atlantic salmon ranking considers the Economic Value its growth strategy and to look for and lowest prices seen in the last six years in aspects, on cost optimization and on (Salar) than in 2011. Added by industry sector and in aggregate develop new business opportunities. response to a close-to-96% increase in taking advantage of the price improvement It was with this vision in mind that we across sectors. At the aggregate level, we I would like to conclude not only by thanking production both in Chile and in Norway. experienced during the last weeks of 2012. announced a capital increase of US$60 were placed number 18 out of 132 local but also encouraging all and each of the Our company was no stranger to this reality It was against the background of declining million last December, at the same time as companies. We are naturally very proud of members of Australis Seafoods Group. The which was duly reflected in this year’s result. prices that the Company’s Board of Directors the majority shareholder announced the full this recognition and remain committed to reputation of our Company, the recognition For the year ended December 31st, 2012, the made the early and well-timed decision to subscription of its proportion of the share work hard and reach new milestones for of its excellence by marketing agents, and Company posted a loss of US$66.1 million, cut the initial production plan by adopting issue, which has been positively received by our shareholders. We have also focused the Company´s appreciation by the market which compares to a profit of US$27.4 a more conservative view in terms of growth the market. Part of this capital increase will on new commercial strategies to add new in general are mainly the result of your hard million in 2011. rates for the coming years. In light of market be used to resume the position that Australis markets and clients in the fastest growing work, dedication and perseverance. I invite As for sales, these recorded a decrease developments observed towards the end of Seafoods achieved in 2011 as one of the destinations, such as Brazil, China and India, you to work harder than ever in the effort of of 26% in relation to the previous year, last year, we are convinced that this was the leaders in the production of salmonids in and to improve the logistics and processing promoting this project, one that has already totaling US$121.8 million. This decrease is right decision. the world. of our production. An important milestone proven itself ready for big challenges. You Federico Rodríguez Marty explained by an almost 30% fall in prices, Moreover, and despite possible price We are therefore well aware of the unique for Australis in this context has been the are a key part of this aspiration. partly compensated by higher sales volumes fluctuations in the markets that are attractive strengths of our Company. These will allow negotiation and recent acquisition of our that increased from 28.457 tons in 2011 to for Chilean salmon, we continue to be us to recover lost ground quickly. We not first processing plant on March 28th, 2013. 32.026 tons in 2012. In turn, costs of sales optimistic about the fundamentals of our only have the necessary infrastructure and The Fitz Roy plant will process initially up reached US$156.9 million, 38% above the industry. The world’s population increasingly well established know know-how from to 40,000 tons and incorporate more than 2011 level. consumes proteins on a consistent basis and the beginning of the productive cycle to 230 employees, all of whom we welcome Almost two years ago, when our Company demand for salmonids increases at an annual marketing in key international markets, warmly to the Australis team. started the process of going public, we compound growth rate of approximately but also an expert professional team of the At the end of 2012 there were clear signs of stressed the values that characterize us and 6%. highest caliber to continue developing the improvement in the price of our products which are part of our business philosophy: In addition, salmon has distinct features Australis project, all of which has been duly and we are certain that this upward trend will Federico Rodríguez Marty transparency, vision, anticipation and among animal proteins: it is a natural source recognized by the market. continue in a scenario where the industry´s Chairman of the Board of Directors agility. Well aware of the cyclical nature that of vitamins, proteins and other nutrients, Fully consistent with this view, I am pleased players have come to appreciate the impact Australis Seafoods S.A. OUR COMPANY

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

2012 Milestones

First Chilean company to Sound growth plan New Chairman and CEO obtain the Global G.A.P. decision At the beginning of 2013 Mr. Rodrigo Certification We anticipated the severe fall in prices in Arriagada Astrosa was appointed the new CEO of the Company. He resigned as In March 2012, we obtained the Global 2012 caused by excess production in Chi- chairman of the Company to make way for G.A.P. certification, recognized by the Glo- le and globally, announcing moderation in Mr. Federico Rodríguez Marty. They both bal Food Safety Initiative (GFSI), which the Company´s planting and harvesting contribute to our experienced team by certifies our good practices in the elabora- growth rates. continuing the work of the previous ma- tion of our products and strict compliance nagement. with international standards. This makes Capital increase us the first Chilean company to obtain this Due to the uncertainty in the industry and certification for all its productive facilities, 2012 EVA Ranking best in anticipation of lower prices and higher and the local company with the largest vo- salmon farm production costs - and their impact on cash lume of certified biomass in the three spe- flows - we announced a capital increase of We were recognized as the best salmon cies of salmon (Atlantic, Pacific and Trout). US$60 million for 2013. The controlling farm in the 2012 version of EVA Ranking shareholder confirmed the subscription of prepared by Econsult. The ranking con- its share of such amount, which has been siders the Economic Value Added by in- received positively by the market. dustry sector and at a general level. The Company ranked number 18 out of 132 companies

Rodrigo Arriagada Astrosa OUR COMPANY

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Company Information Ownership and Control of the Company

Basic Information Total number of shareholders: 77 Corporate Name: Australis Seafoods S.A. (ASF) Main Shareholders: Asesorías e Inversiones Benjamín S.A. RUT*: 76003557-2 Address: Cerro El Plomo 5680, Office 403 Fondo de Inversión Privado Australis, represented by Las Condes, Santiago, Chile. Administradora de Inversiones Tamarindo S.A. Kind of company: Publicly Held Corporation

Incorporation Documents 12 main shareholders as of December 31, 2012 Public deed N° Name or Corporate Name RUT Shares % City: Santiago Date: October 31, 2007 1 Fondo de Inversión Privado Australis 76.123.347-5 1,101,077,936 78.48 Notary Public: Iván Torrealba Acevedo 2 Asesorías e Inversiones Benjamín S.A. 79.744.960-1 106,924,508 7.62 3 Fondo de Inversión Larraín Vial Beagle 96.955.500-k 54,950,856 3.92 Legalization 4 Larraín Vial S.A. Corredora de Bolsa 80.537.000-9 43,331,873 3.09 Publication in the Official Gazette Date: November 21, 2007 Registration before in the Commercial Record 5 AFP Hábitat S.A. for Fondo Pensión C 98.000.100 16,043,158 1.14 Page: 48.775 Number: 34.583 6 Compass Small Cap Chile Fondo de Inversión 96.804.330-7 11,491,470 0.82 Year: 2007 7 MBI Corredores de Bolsa SA 96.921.130-0 10,473,656 0.75 Date: November 16, 2007 8 AFP Hábitat S.A. Fondo Tipo B 98.000.100-8 10,414,253 0.74 9 AFP Hábitat S.A. Fondo Tipo A 98.000.100-8 8,969,575 0.64 Contact Information 10 Bolsa de Comercio de Santiago Bolsa de Valores 90.249.000-0 6,452,358 0.46 Headquarters Cerro El Plomo 5680, Office 403, 11 Negocios y Valores S.A. C de B 96.586.750-3 6,288,871 0.45 Las Condes, Santiago, Chile Phone (+56 2) 2299.58.00 12 Bice Inversiones Corredores de Bolsa S.A. 79.532.990-0 4,549,006 0.32 Fax (+56 2) 2798.96.52 Email: [email protected]

* RUT: National Identification Number

Name of Controlling Shareholder(s): Quiroga Moreno, Isidoro Ernesto Chilean RUT. 6.397.675-K Percentage of Direct Property 0% Percentage of Indirect Property 86,957%

Control Mr. Ernesto Isidoro Quiroga Moreno controls Australis Seafoods S.A. through the companies Asesorías e Inversiones Benjamín S.A. and Fondo de Inversión Privado Australis. Mr. Quiroga Moreno holds 0.1% of the capital shares of Asesorías e Inversiones Benjamín S.A., and the remaining 99.9% is held by Inversiones El Aromo Limitada in which, in turn, he holds 70.19571% of the corporate rights. On the other hand, the only investor in Fondo de Inversión Privado Australis is Rentas Acuícolas Limitada, whose partners are Asesorías e Inversiones Benja- mín S.A. with 99.99% of the corporate rights, and Inversiones El Aromo Limitada with 0.01%.

Main changes in ownership occurred During 2012, there were no major changes to the ownership of the Company.

during 2012 OUR COMPANY

8 9 client loyalty and growth, has led us to develop reliable, sustainable and long term business business term long and clients. sustainable our all reliable, with attraction, develop to us pillars: relationships led has fundamental growth, and three on loyalty based is client which strategy focused customer Our inspires Australis whose vision to achieve continuous improvement executive team with vast experience in the industry,We have a first class V OUR I S I ON S eafoods’ philosophy of excellence. B oard of Directors and senior

O ur T eam ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Administration and Staff

Description Australis Seafoods S.A. is a company At present there are two principal com- that holds, through its subsidiaries, panies: one focused on production in interests in the aquaculture sector, par- freshwater and one on the seawater ticularly in the production of eggs and weight gaining business. smolts, the weight gaining of salmon The summarized organizational structu- species and their export and marketing. re is shown below.

Directorio de izquierda a derecha: Luis Felipe Correa, Rafael Fernández, Jorge Rodríguez, Isidoro Quiroga, Martín Guiloff y Federico Rodríguez,

The relevance of this structure is that tage Developing company it allows an adequate vertical integra- tion of our businesses since within the Genetic development and production of eggs Landcatch Chile S.A. Group the production of salmon species Breeding and weight gaining in freshwater Landcatch Chile S.A. is managed from its genetic develop- Weight gaining in seawater Australis Mar S.A. ment to its final marketing. Thus, it is Marketing and exports Australis Mar S.A. possible to add value in each stage of the business, and within the company involved, as indicated in the table below:

Name RUT Occupation Isidoro Quiroga Moreno 6.397.675-K Civil Engineer b) Board of Directors and Management Federico Rodríguez Marty (Chairman) 9.357.625-K Lawyer Luis Felipe Correa González (Secretary) 11.947.424-8 Lawyer The Company’s Board of Directors in Rafael Fernández Morandé 6.429.250-1 Civil Engineer made up of the following persons: Martín Guiloff Salvador 12.661.579-5 Civil Engineer eam

Jorge Rodríguez Grossi 5.141.013-0 Economist T ur O

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

The following is a list of the names and positions of the managers and senior executives.

Australis Seafoods S.A. Rodrigo Arriagada Astrosa CEO Civil Engineer Universidad Católica RUT: 8.547.812-5

Luis Felipe Correa González Legal Manager Lawyer, Universidad Diego Portales Master in Business Law, Universidad de Our Staff Remunerations Los Andes RUT: 11.947.424-8 The following table shows a list of the Company’s staff at the end of 2012: During 2012, the Company’s During the year, the Company did not The total amount of gross compensation remuneration paid to Chairman Rodrigo incur in any expenses for counseling from paid to managers and executives during Ricardo Daniel Misraji Vaizer Company AMSA LACSA ASF Total Arriagada Astrosa were ChP$28,000,000 the Board. 2012 was US$3,527,000. CFO to Director Isidoro Quiroga Moreno ChP From January 1, 2012 until December 31, During 2012, compensation for years of Executives 14 2 3 19 Business Administration, Universidad $22,000,000, to Director Luis Felipe 2012, the Company paid remuneration service paid to managers and/or senior Católica de Chile Professionals and technicians 115 36 2 153 Correa González ChP $24,000,000, to the members of the Committee of executives was US$673,186. Master in Business Administration, Administrative Staff 26 8 1 35 to Director Federico Rodríguez Marty Directors as follows: to Director Rafael University of Cambridge, UK. ChP $22,000,000, to Director Rafael Fernández Morandé, $3,000,000, to Other Employees 4 148 - 152 RUT: 8.967.131-0 Fernández Morandé ChP $26,000,000, to Director Jorge Horacio Rodríguez Grossi, Total 159 194 6 359 Director Jorge Horacio Rodríguez Grossi $3,000,000, and to Director Martín Gabriel Guajardo Gonzalez ChP$18,000,000, and to Director Martín Guiloff Salvador, $3,000,000. Production Manager Guiloff Salvador ChP $16,000,000. Fishery Engineer, Universidad Católica eam de Valparaíso T Master in Business Administration,, ur

Economics and Administration School O of Universidad Austral RUT: [_*_]

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Historical Overview

Australis took its first steps in 2003 when its In 2010, considering the growth that the Australis Seafoods S.A. purchases Vision current controlling shareholder, Isidoro Qui- Landcatch Chile S.A. Australis Seafoods Group had experien- • To be acknowledged as a Company roga Moreno, acquired Australis S.A. (ASA), ced, the acquisitions it had made and, abo- that is innovative, efficient and respectful In October 2009, in order to integrate the a freshwater smolt producing company that ve all, the new challenges it would have to towards the natural environment and the entire production line, Australis Seafo- already had 10 years of experience. It was face, the Company decided to implement communities in which we operate, there- ods S.A. purchased Landcatch Chile S.A. only in 2007 when it expanded its business a corporate reorganization of its subsidia- by achieving a leading position in cost and (LACSA), a company that has one of the to seawater growing salmon through its sub- ries which included the assumption by profitability. sidiary Australis Mar S.A. (AMSA). Thus, the leading breeding programs in Chile. This LACSA of all of ASA’s activities. As a result integrated operation of ASA and AMSA com- acquisition allowed Australis to procure of this process, the Group activities were Values bined the purchase of the eggs and/or smolts 100% of the eggs it requires to meet its separated into two business areas: (i) fres- • Commitment to our workers - which were bred in freshwater ASA’s facili- production plans, thus restricting to a mi- hwater production of genetically improved • Promoting integral development of our co- ties – with the weight gaining farms in AMSA nimum the risk of transmission of disease eggs, fry and smolts, exclusively through llaborators in a safe, respectful and peaceful facilities, where the production cycle ended. that may come from importing eggs from LACSA, and (ii) the businesses of weight third parties. Having its own genetic pro- work environment. This business model allowed Australis to ex- gaining of salmonids, an the marketing holding company acquired 50% of one the and dedication- strive every day to achieve the gram, Australis could also have fish families • Innovation and quality in harmony with pand the operations within the value chain of and export of meat to foreign markets major salmonid distributors in the U.S., goal of making Australis one of the main sal- to improve the quality of its own products, the environment Atlantic salmon, Pacific salmon (Coho) and through AMSA. True Salmon Pacific Holding. mon exporters worldwide. and eggs to supply the Chilean market. • Ongoing search for better solutions in our Trout and to optimize the different processes production process in order to provide high in each of the companies. That same year, Going public in the Santiago Stock Leader in the Chilean salmon In addition to this acquisition, Austra- Mission, Vision, Values quality and fresh products with utmost pre- with the purpose of giving a corporate struc- Exchange industry lis signed a technical support agreement caution and care for the environment and the ture to its aquaculture activities, Australis Mission In June 2011, Australis Seafoods S.A. went In its short years of existence, Australis has communities neighboring our operations. Seafoods S.A. was incorporated as a holding with Landcatch Natural Selection Limited, • To offer products with world-class qua- public in the Santiago Stock Exchange. As come to occupy a leading position in the Chi- • Compliance of principles that promote the company. according to which it agreed to provide te- lity standards developed under a modern, was proposed to the new Company inves- lean salmon industry. This, thanks to the entre- best corporate practices and compliance with chnical consulting to LACSA with regard to efficient and flexible management system tors, the funds then raised have been desti- preneurial vision of the Company’s controlling applicable rules and regulations in all activi- genetic improvement in the reproduction of and through an environmentally friendly ned to finance the Company’s growth plans. shareholder, a first class management team with ties undertaken by the directors, executives salmonid species and breeding programs, production process, with consideration for Also, to secure a better distribution of its vast experience in the business and with a ca- and employees of Australis Seafoods Group, among others. This contract is effective until maximum sanitary safety parameters and products in one of the most important pacity to respond rapidly in decision making; ASF. December 2015 and is renewable for periods acting responsibly towards our employees. eam

of 3 years, as of that date. markets, the U.S.A, that same year the a team of collaborators that- with commitment T ur O

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

AGILITY In our few years of existence, we have come to occupy

an important position in the Chilean salmon industry; ustry d today we are prepared for the challenge to diversify our n I markets and exports. almon

In the search for alternative markets to cushion the potential adverse impact of international S crises and/or market downturns, the Company has implemented a dynamic and cutting edge ex- e

port model that enhances the competitive advantages of its products and develops new niches T h and markets

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

The Salmon Industry

The Product to obtain it, salmon is the species delive- Studies show that salmon is a food that re- Supply Chile has about 1.300 Km. and Norway Salmon farming started experimentally in ring the best conversion rates (Chart 1). presents a vital source of nutrients, among The main producers of farmed salmon and about 2.240 Km. for farming salmon. the 60’s and became a productive industry Despite these efficient conversion rates and which are a large percentage of polyunsa- trout are Norway and Chile. According to Authorities in all salmonid producing re- during the 80’s in Norway and in the 90’s in the fact that almost 70% of the planet’s sur- turated fatty acids (long-chain Omega-3) 2012 figures, they account for about 79% gions have license granting regimes to ope- Chile. Since those years the production of face is water, only 6% of the protein in the that help prevent cardiovascular disease of world salmon production and 88% of rate piscicultures or weight gaining cen- Atlantic salmon has grown by over 600%. world comes from the sea. and contribute to the smooth functioning trout world production. Both countries ters. This restricts the maximum capacity The main sources of protein for humans In addition, salmon is a recognized natural of neurons, among other benefits. (Table have climatic and oceanographic condi- of production in each country. come from livestock, poultry, pork, fish source of vitamins, proteins and antioxidants. N°1 and Chart N°2) tions favorable to the farming of these Moreover, the catch of wild salmon has and seafood, but if the amount of protein Its benefits and properties make it an ideal products which explain the high concen- remained relatively stable in the last de- in the food sections of each animal is com- food in all stages of human development, tration on the supply side (Charts N°3 and cade. Currently it is estimated that the only pared with the amount of protein needed from the period of gestation to adulthood. N°4). source of growth in the supply of salmon

Chart N°1 Table N°1 Chart N°2 Chart N°3 Chart N°4 Protein Retention Nutritional Comparison based on 100 Gr. Salmon Nutritional Information Atlantic salmon harvest per country Trout harvest per country (Base Portion: 4 Oz. or 113.4 Gr.) (M Tons WFE) (M Tons WFE) 5% Energy Proteins Fatty Acids 3% (Kcal) (gr) (gr) 4% 23% Lamb 282 17 23 Meat 276 15 24 Pork 263 17 21 / kg food protein Chicken 215 19 15 Kg protein in eatable parts 142 20 6 ustry

Salmon d n Atlantic Pork Poultry Lamb 65% I Salmon Norway Faroe Island Norway Faroe Islands Source: Bjorkl, J., Norwegian University and Life Source: USDA Chile Ireland Chile Sciences, Norway (2002) United Kingdom Others Finland

Canada Denmark almon S e

Source: The World Healthiest foods Source: Kontali Analyse Source: Kontali Analyse T h

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Chart N°5 would be possible through aquaculture. in the years to come (Chart N°7). Chart N°8 World wild salmon and farmed salmon harvest Chilean Salmonids Export Destiny (M Tons WFE) During 2012 approximately 66% of the In Chile, the main export destinations of global salmon production corresponded to Salar are: USA, Brazil and Japan; however, the cultivated species (Chart N°5). during 2012 salmon shipments to Russia Gráfico N°8a Gráfico N°8b Gráfico N°8c 2012 Chilean Salar Export Destination 2012 Chilean Trout Export Destination 2012 Chilean Coho Export Destination Within the abovementioned salmon pro- have increased and part of the European (M Tons WFE) (M Tons WFE) (M Tons WFE) ducing countries, the only one with poten- market has been recovered. tial capacity to increase its production in The main export destination of Trout and the short term is Chile (Chart N°6). Toho continues to be Japan; Russia has During the last 20 years, the accumulated however increased its demand of Trout Thousande of ton. WFE growth of Chile in the production of the and it is expected to increase shipments three species has been close to 10%, and it in order recover the market share lost is expected that this rate will be maintained during the ISA crisis (Chart N°8).

Wild Salmon Farmed Salmon

Source: Kontali Analyse Source: Kontali Analyse Source: Kontali Analyse Source: Kontali Analyse Chart N°6 Chart N°7 Trout harvest per country Chilean Salmonids Production (M Tons WFE) (M Tons WFE) Gráfico N°8d 1400 Gráfico N°8e Gráfico N°8f 2011 Chilean Salar Export Destination 2012 Chilean Trout Export Destination 2011 Chilean Coho Export Destination (M Tons WFE) (M Tons WFE) (M Tons WFE) 1200

1000

800

600 ustry d n

400 I

200 almon 0 Noruega Chile Otros S e

Producción 2012 Potencial

Coho Trout Salar T h Source: Kontali Analyse Source: Kontali Analyse Source: Kontali Analyse Source: Kontali Analyse Source: Kontali Analyse, Infotrade

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Demand The Competition The main destinations for world exports Salmon is a commodity and competition of salmon and trout are the markets in is global, therefore it must be analyzed as the USA, Asia, the European Union, and such. Historically the market has seen a Russia and, since 2010, Latin America. decline in the number of participants. In Of these markets, the Norwegian indus- Norway, the number of companies that try mainly supplies the European Union, represent 80% of farmed salmon produc- Russia and Asia, while Chilean production tion decreased from 70 to 22 between serves mostly markets in the USA, Asia and 1997 and 2012. In Chile, this trend was Latin America (Table N°2). only interrupted in 2009 due to the entry For Chile, the USA continues to be one of of new players. However, in light of the the main export markets of Atlantic sal- new regulations and production systems, mon, while Japan is the largest client of it is expected that the industry will tend to Trout and Coho. consolidate in coming years. The number In 2012, Brazil was one of the main des- of companies decreased from 35 in 1997 tinations of Chilean production, after the to 16 in 2012 (Chart N°9). USA, and demand is expected to continue to grow in that country in the future.

Table N°2 World Atlantic salmon demand in the main markets (M tons WFE)

2010 2011 2012 2012/2011 European Union 737 782 916 17% USA 257 288 343 37% Japan 34 46 63 19% Others 421 504 648 29% Total 1.449 1.620 1.970 22%

Source: Kontali Analyse

Chart N°9 Number of Salmonid Operating Companies per country ustry d n I almon S e T h

Source: ABG Sundal Collier

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Prices In terms of price performance, 2012 was Prices for the main product that is expor- remained below the average for the past one of the worst for the industry in the ted from Chile to the USA (that is, Trim D six years but without reaching historical last 6 years. This was mainly due to the 3-4 lb steak) reached historical minimums minimums. (Charts No. 10, 11, 12, 13). oversupply of the three species. 96% of in 2012, with the biggest drop recorded in For Trout and Coho the situation was si- the increase in production was caused by October 2012. milar, as inventories of both products were Norway and Chile, where Norway contri- The Norwegian market, in turn, expe- increased mainly in Japan, which is their buted 47% and Chile 49%. rienced a less dramatic situation as prices primary target market

Chart N°10 Chart N°11 TRIM D 3-4 lb FOB MIAMI [US$/lb] Trucha H&G Premium 4/6 lb [Yen/Kg]

MAX/MIN 2006-2012 AVG 2006-2012 2011 2012 MAX/MIN 2006-2012 MAX 2006-2012 2011 2012

Source: Urner Barry

Chart N°12 Chart N°13 FS 3-6 Kg FCA OSLO [NOK/kg] Coho H&G Premium 4/6 lb [Yen/Kg] ustry d n I almon MAX/MIN 2006-2012 AVG 2006-2012 2011 2012 MAX/MIN 2006-2012 AVG 2006-2012 2011 2012 S

Source: Fishpool Source: FIS e T h

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

EXCELLENCE As an integrated company, we combine research, technology and the privileged oceanographic conditions of the Chilean Patagonia to supply the world with a product of excellence.

We are present throughout the production chain, from the genetic development of the species, breeding, nursery and smoltification in freshwater, to seawater weight gaining, harvesting and processing, including marketing and export activities

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Our Business

Australis Seafoods, one of the top 10 companies in the Chilean salmon industry, went public in the Santiago Stock Exchange in June 2011 and is managed by a team of professionals with vast experience. The Company integrates the complete chain of production of salmon and trout and has freshwater fish farms in 5 regions of the country, facilities where it applies strict and experienced genetic programs for the production of high quality eggs, fry and smolts. The smolts are transferred to their weight gaining centers located in the Chilean Patagonia, a place with unique climatic and oceanographic conditions for the production of Salmon, Trout and Coho. Australis processes finished product subject to the highest quality world standards and markets them in the major international destinations, notably the US market, ustry

which is covered through the Company´s d American marketing subsidiary, True Sal- n I mon Pacific Holding Inc. almon S e T h

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Freshwater in Landcatch S.A. piscicultures located in Chile´s Metropolitan, Bío Bío, Araucanía, The freshwater phase begins with the Los Ríos and Los Lagos Regions. Australis production of eggs, obtained from sal- Seafoods Group does not have any lake mon broodstock (male and female) who concessions or estuary for the smoltifica- have spent their entire life in controlled tion process, which takes place in inland environments in freshwater piscicultures. controlled piscicultures. All piscicultures It continues with the incubation of the have sanitary security standards to deli- eggs and subsequent breeding and weight ver high quality fish for their weight gai- gaining of fry until they acquire the con- ning process. dition of smolts, at which point they are transferred to seawater. The genetic program is based on permanent and continuous improvement of each generation of broodstock, enhancing Sea Water key attributes such as growth, meat color, The seawater phase is the last farming disease resistance, among others, so that process where fish are bred and gain each new generation has a better perfor- weight until they reach their required mance. Consequently, this genetic impro- weight for their processing and subse- vement program responds to the need to quent marketing. produce fish with high productive perfor- Depending on the species, seawater bree- mance, both for the freshwater and the ding and weight gaining goes from the re- seawater weight gaining phases. ception of the smolts in the different cen- Although in Chile the eggs are usually ters until the harvesting of the fish when produced between the months of June these weigh between 3 Kg. and 5 Kg. This and October, thus replicating the natural process takes place at Australis facilities cycle of salmon, the facilities and techni- or centers located in the Region of Aysén. ques developed by our Chilean experts The production of Atlantic salmon, Coho from Australis Seafoods also allow repro- and Trout is detailed bellow duction between the months of January At the seawater centers the fish are moni- and March. This allows the replacement tored permanently during the weight gai- of imported eggs and the supply of high- ning process which lasts about 10 to 18 quality eggs almost year-round, not only months, depending on the species. to sustain the production plans of Austra- lis Mar but also to supply third parties. Freshwater breeding and weight gaining Table N°3 consider the processes of incubation, fres- Tons per specie (WFE) 2011 2012 Variation % hwater rearing and smoltification, that 2011/2012 is, the incubation of eggs until they grow Atlantic Salmon 21,394 19,387 -9% into fry (approx. 15 Gr.), and then bree- Coho Salmon 4,607 5,318 15% ding and weight gaining until these are Trout 4,081 10,496 157%

smolts (approx. 100 Gr.). ssets

The freshwater processes are carried out Total 30,082 35,201 17% A ain M

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

The Process the USA) are set one week in advance. Market Diversification The process follows strict standards of For other markets, such as Latin America In the search for alternative markets to food safety and animal welfare. The pro- and Japan, prices are fixed on a monthly mitigate the potential negative impact of cessing plants receive the raw material basis. For frozen products, conditions are international crises and/or market down- (whole salmon or trout) and by using settled on a case by case basis as long-term turns, Australis Seafoods is open to the high end technology and qualified labor, programs (3, 6 or more months). This po- challenge of diversifying its export mar- transform it into value-added products, licy allows the Company to optimize prices kets. according to the requirements of custo- and reduce price fluctuations in the spot Using the extensive network of trade mers in the target markets. market. For Coho, prices are agreed in ad- agreements signed by our country, Aus- The products are inspected and undergo vance for the whole growing season. tralis Seafoods has implemented a dy- rigorous quality controls and microbiolo- During 2012 Atlantic salmon exports had namic and cutting edge export model, gical laboratory analysis during all stages the following final destinations: thereby enhancing the competitive ad- of the production process. vantages of its products, developing new Once the process in the plant is conclu- niches and destinations and diversifying ded, the products, both fresh and frozen, Chart N° 14 its customer base. This has enabled the Australis Seafoods 2012 Export Destina- The monitoring considers variables that are stored in cold-storage plants. From tions (USD FOB) Company not only to expand its export affect the development and weight gai- there, the fresh products are shipped market coverage, but also its presence in 21 % ning of the fish, such as sanitary and daily -in refrigerated trucks- to the San- 29 % international markets. growth status, among others. tiago International Airport their shipment Once the fish have reached their harves- to their final destination. Meanwhile, fro- Developing Clients ting weight or market size, they are trans- zen products are kept in the cold-storage 10 % One of the pillars of Australis Seafoods’ ported to the processing plants located plants until they are loaded onto contai- business strategy is its customer orien- in the areas of Chonchi and Quellón, in ners at -18°C - to be transported by sea to tation and focus. Attraction, growth and Chiloe and in Puerto Montt, respectively. various ports of destination. 12 % client loyalty are the cornerstones favored 28 % to conduct reliable, sustainable and long These provide Australis the service of co- Japan United States term business relationships with all its llection, slaughtering and processing of Marketing and Export Brazil Chiles clients. the live fish. A variety of products is marketed accor- Others Australis uses well-boats to transport the ding to the requirements of customers in An example of this is True Salmon Pa- live fish from the breeding centers to the different markets. For this purpose, the cific Holding (TSPH), one of the largest processing plants. marketing strategy considers: marketers of fish and seafood in USA by The table below shows the sales volume The well-boat sucks the live salmon from Pre-sold production and medium & sales volume, which is now 50% owned in tons of Australis for different species the cages in the breeding sites and places long term sales agreements. by Australis Seafoods. Through this sub- (Table N°4): them in vats of water within the boat. In For Atlantic salmon and Trout, prices for sidiary, Australis Seafoods can directly, these vessels the fish are in optimal densi- part of the production (fresh deliveries to accurately and timely meet all its clients’ ty and oxygen levels, which ensure trans- requirements in the American market. portation in excellent freshness and qua- Tabla N°4 lity conditions, and results in obtaining a Tons per specie (WFE) 2011 2012 Variation % Insurance Policy final product of excellence. 2011/2012 Australis Seafoods Group’s policy is to Atlantic Salmon 20,569 18,063 -12% review its risk coverage and assets on a Coho Salmon 4,203 5,438 29% constant and ongoing basis. As a result, all its infrastructure and key assets, such

Trout 3,684 8,854 140% ssets as piscicultures and seawater centers, are A Total 28,456 32,355 14% adequately insured. ain M

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Risk Factors

The salmon industry inherently involves a the adverse effects caused by this kind number of risk factors that affect the de- of predators. velopment of the business. Some of these • Risk of nature: Salmon growth de- factors are the following: pends, among other things, on climatic and oceanographic conditions, such as • Market risk: Salmon products fall into changes in luminosity of the environ- the commodities category and are there- ment or water temperature, which can fore subject to price fluctuations in the have a negative impact on fish growth international markets. Sale prices are thus and food consumption. subject to seasonal fluctuations that can lead to prices moving up or down. • Exchange rate risk: Sales of Australis Seafoods Group are in US dollars and, • Operating risks: Given the biological therefore, there is an implicit risk involved characteristic of these assets, salmon pro- in this currency’s appreciation vis a vis the duction is potentially affected by a num- Chilean peso. Both appreciations and the ber of risks of this nature, including the depreciations of the local currency directly following: affect the results of Australis Seafoods • Diseases: Although disease is cu- Group because parts of its expenditures rrently controlled through vaccines, are denominated in local currency. antibiotics, good management practices and through the production of high • Interest Rate Risk: Over 75% of the debt quality smolts, it is not possible to rule of the Company is subject to the LIBOR out the development of new diseases or rate plus a fixed spread and changes in pests that may affect production. this rate will therefore directly affect the • Non Compliance : Non compliance Company´s results. To this date the Com- with applicable legislation, failure to pany has chosen not to implement mecha- comply with rest periods and adjacent nisms to hedge the LIBOR rate risk. farming production regulations in particular, could result in sanctions by the • Cost of food: Food is the most significant relevant authorities and even result in direct cost in the production of salmon the revocation of aquaculture conces- and trout in both the freshwater and the sions. weight gaining businesses. Changes in the • Predators: The presence of natural cost of food are caused by developments predators of salmon, such as sea lions, beyond the control of the ASF Group, such may involve a loss of biomass and even as the price or cost of fish meal which, in E R I E S G O

the destruction of net cages. Still, the turn, depends on the costs of the extractive D industry has implemented a series of fishing industry. preventive measures to help mitigate F A C T O R E S

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Subsidiaries and Related Company Information and Piscicultura Río Maullín SpA Corporate Name Piscicultura Río Maullín SpA Investments in other Companies Type of legal entity Joint stock corporation Subscribed and paid-in capital ThChP$ 1 Corporate purpose Purchase, sale, breeding, farming, import, export and distribution of all kinds of hydro-biological resources and, in particular, of salmonid species Board of Directors Federico Rodríguez Marty Rodrigo Arriagada Astrosa Luis Felipe Correa González General Manager/CEO Rodrigo Arriagada Astrosa % of holding company total share participation 100% % of parent company assets represented by subsidiary 0%

As of December 31, 2012, the principal of ASF Group subsidiaries were the following:

Australis Mar S.A. Comercializadora Australis SpA

Corporate Name Australis Mar S.A. Corporate Name Comercializadora Australis SpA Type of legal entity Stock corporation Type of legal entity Joint stock corporation Subscribed and paid-in capital ThUS$ 5,066 Subscribed and paid-in capital ThChP$ 1 Corporate purpose Breeding and the marketing of hydro-biological species, in Corporate purpose Import, export, distribution, representation and marke- particular salmonids ting of all kinds of merchandise, assets and products of Board of Directors Federico Rodríguez Marty any type and, particularly, all kinds of hydro-biological Rodrigo Arriagada Astrosa resources and salmonid species; investment in all kinds of property, personal or real estate, tangible or intangi- Luis Felipe Correa González ble, such as shares, rights, bonds, debentures, negotiable General Manager/CEO Rodrigo Arriagada Astrosa instruments, shares or rights in any kind of companies. % of holding company total share participation 100% Board of Directors Federico Rodríguez Marty % of parent company assets represented by subsidiary 82% Rodrigo Arriagada Astrosa Luis Felipe Correa González General Manager/CEO Rodrigo Arriagada Astrosa Landcatch Chile S.A. % of holding company total share participation 100% % of parent company assets represented by subsidiary 3% Corporate Name Landcatch Chile S.A. Type of legal entity Stock Corporation Subscribed and paid-in capital ThUS$ 10,138 During 2012, Australis Seafoods did not have business com- Corporate purpose Production, distribution and marketing of salmon and other varieties of fish in their different stages of their productive mercial relationships with its subsidiaries and affiliates (other cycle, genetically enhanced, for freshwater al seawater than property relations). Likewise, no contracts were execu- Board of Directors Federico Rodríguez Marty ted between Australis Seafoods and its subsidiaries and affilia- Rodrigo Arriagada Astrosa tes that significantly influence Australis Seafoods’ operations Luis Felipe Correa González and results. General Manager/CEO Rodrigo Arriagada Astrosa ssets % of holding company total share participation 100% A % of parent company assets represented by subsidiary 18%

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

• • At the Ordinary Shareholders Meeting held on April 27, SPECIE INITIAL PLAN ADJUSTMENT CURRENT shares, without par value, of a single series and of equal value. Distributable Profit 2012, Australis Seafoods S.A. adopted the following resolutions: PLAN The funds obtained from this capital increase will be used by the (i) Approval of the Annual Report, Balance Sheet, Financial State- ATLANTICO 12,000,000 4,000,000 8,000,000 Company to continue with the medium-term development plan During the period disclosed by this annual report, the Company ments and the Report of the External Audit Firm for the year ended TRUCHA 2,200,000 0 2,200,000 of the Company, investing part of the funds in assets that allow had losses equivalent to ThUS$66,096 which, after applying the December 31, 2011; (ii) Agreement to pay a definitive dividend of the sustainable development of the Company in the coming years COHO 3,300,000 1,100,000 2,200,000 distributable income criteria, amount to ThUS$56,118. Thus, there $8,243,085 US Dollars from distributable net income obtained the and the maintenance of existing assets necessary for the operation. are no dividends to be distributed since there is no positive net year ended December 31, 2011, equivalent to $0.005888 US Do- TOTAL 17,500,000 5,100,000 12,400,000 Also, the funds will be used in activities inherent to the operation, income. llars per share, which corresponds to the minimum mandatory di- both in the breeding and weight gaining stages, and in the proces- This adjustment in the farming plan will imply that the projected vidend (30%); (iii) Agreement to establish that the dividend policy sing and commercialization in the markets it supplies. Finally, part harvest by species shall be as follows (values in thousands of tons): of the Company shall be to pay 30% of the net distributable income of the funds will be used to pay off financial obligations; and (ii) Dividend Policy through a definitive dividend payable within 30 days following the modify the remuneration of Directors and of the Audit Committee, Meeting that approves it. This policy does not initially consider SPECIES 2011 2012 2013 maintaining the amounts currently paid but establishing that such (real) (estimate) (estimate) The Company will annually distribute a cash dividend to its payment of potential or provisory dividends, notwithstanding that figures are monthly, regardless of the number of sessions that each ATLANTICO 21.4 21.6 34 shareholders of, at least, 30% of the net income of each year, it may be advisable in certain circumstances; (iv) Approval of the Director attends, either the Board or the Committee, as long as provided that the balance between the accumulated loss and net appointment of the following directors of Australis Seafoods S.A. TRUCHA 4.1 11.5 5.9 they at least attend one session of the respective entity during the income is positive. This is notwithstanding the event in which the for a period of 3 years: Isidoro Moreno Quiroga, Rodrigo Arriagada COHO 4.6 7.6 5.1 corresponding calendar month. Also, it was informed that the con- dividend is reinvested in the Company by its shareholders. Indeed, Astrosa, Federico Rodríguez Marty, Martín Guiloff Salvador, Luis TOTAL 30.1 40.7 45.0 trolling shareholder of the Company, Mr. Isidoro Quiroga Moreno, in this case, the amount of the dividends can be up to the total net Felipe González Correa, Jorge Rodríguez Grossi and Rafael Fernán- sent a letter to the Board by which he communicated his intention income of the year. dez Morandé, the latter appointed as an Independent Director; (v) As a result of the abovementioned adjustment plan, investments in to exercise, directly or indirectly, his right of first refusal to subs- Approval of the remuneration to be paid to the directors until the fixed assets will be reduced by approximately $9.5 million US Do- cribe all the shares to which he is entitled once the respective first Share Transactions next Annual Ordinary Shareholders Meeting; (vi) Approval of the llars, which corresponds to lower investments in seawater weight refusal period begins. appointment of PricewaterhouseCoopers as the external audit firm gaining centers. This reduction does not involve any changes to the During 2012 there were no relevant share transactions. for 2012; and (vii) Approval of a fixed remuneration and the ex- financing plan of the Company. • On January 2, 2013, Mr. Andrés Saint Jean Hernández resig- penditure budget for the Board of Directors for 2012. ned to his position as CEO of Australis Seafoods S.A. and was • At a Meeting held on November 6, 2012, the Board of Directors substituted by Mr. Rodrigo Arriagada Astrosa, who until then had Information on Essential or • At the Australis Seafoods S.A. Extraordinary Shareholders Mee- of Australis Seafoods S.A. agreed to summon the Shareholders to been the Chairman of the Board of Directors of the Company. In Material Events ting held on April 27, 2012, an agreement was reached to correct an Extraordinary Meeting to be held on December 4, 2012, in or- turn, Mr. Rodrigo Arriagada resigned his position as Director of the exchange rate of the currency in which the capital of the Com- der to submit to their consideration the following matters: (i) The the Company and accepted his appointment as CEO. Additionally, During 2012, the Company reported the following essential or ma- pany was established – as approved at the Extraordinary Sharehol- approval of a capital increase by the Company of $60 million US the Board of Directors appointed Mr. Federico Rodríguez Marty as terial events: ders held on October 20, 2011- in accordance with the observa- Dollars, through the issuance of new registered shares, without par Chairman of the Board, Mr. Martín Salvador Guiloff as Vice Presi- • On March 23, 2012, subsidiary Australis Mar S.A., incorpora- tions made by the Superintendency of Securities and Insurance by value, of a single series and of equal value, and the amendment of dent, and Mr. Luis Felipe Correa González as Secretary. ted the following subsidiaries: (i) Acuícola Cordillera Limitada, (ii) Oficio (Official Letter) N°33095 dated December 20, 2011. To that Article Five and Article First Provisional of the Company Bylaws; Salmones Alpen Limitada, (iii) Salmones Wellington Limitada and purpose, Articles Fifth and Article First Provisional of the By-laws (ii) The approval of the modification of the monthly remunera- (iv) Salmones Islas del Sur Limitada, all of which are engaged in of the Company were amended. tion of the Board and of the Audit Committee which would be Summary of Shareholders’ aquaculture. The incorporation of these subsidiaries is a result of $2,000,000.- for members of the Board, and $600,000.- monthly the growth process of the operations of the Company. Considering the sustained fall in international prices of salmon cau- for members of the Committee, regardless of the number of ses- Comments and Statements sed to a large extent by the strong increase in Chilean production sions they attend; and (iii) Adopt other necessary agreements to During 2012 the Company did not receive comments or proposals • At the meeting held on March 27, 2012, the minutes of which and the pressure it has placed on the markets, in a Meeting who- carry out the above mentioned matters. from shareholders holding or representing 10% or more of the is- were signed on April 9, 2012, the Board of Directors of Australis se minutes were signed on May 28, 2012, the Board of Directors sued shares. Seafoods S.A. agreed to summon an Ordinary and an Extraordinary agreed to reduce the original 2012 farming plan of smolts from • On December 4, 2012, an Extraordinary Shareholders Meeting Shareholders’ Meetings, to be held on April 27, 2012. 17.5 million units to 12.4 million units. The breakdown by species of the Company was held, attended by shareholders representing of the adjustment of the farming plan is as follows (values in units): 96.97% of the total shares with voting rights, and who agreed the following: (i) approve a capital increase of US$60 million to be carried out through the issuance of 500,000,000 new registered ssets A ain M

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Responsibility statement

The undersigned declare that all information contained in this 2012 Annual Report is true and in accordance with reality

Federico Rodríguez Marty Isidoro Quiroga Moreno Jorge Rodríguez Grossi Chairman of the Board of Directors Director Director 9.357.625-K 6.397.675-K 5.141.013-0

Luis Felipe Correa González Rafael Fernández Morandé Martín Guiloff Salvador Director Director Director 11.947.424-8 6.429.250-1 12.661.579-5

Rodrigo Arriagada Astrosa General Manager/CEO 8.547.812-5

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Consolidated Financial Statements

AUSTRALIS SEAFOODS S.A. AND SUBSIDIARIES December 31, 2012

Contents

Independent Auditors’ Report 47 Classified consolidated financial statement 48 Consolidated income statement by function 50 Consolidated statement of comprehensive income 51 Consolidated statement of changes in net equity 52 Consolidated statement of cash flows - indirect method 53 Notes to the consolidated financial statements 54

US$ - United States Dollar ThUS$ - Thousands of United States Dollars

ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

INDEPENDENT AUDITOR’S REPORT Santiago, March 4, 2013

Messrs. Shareholders and Directors Australis Seafoods S.A.

We have audited the attached consolidated Financial Statements of Australis Seafoods S.A. and subsidiaries, which comprise their consolidated statements of the financial situation as of December 31, 2012 and 2011, and the corresponding consolidated statements of income, comprehensive income, changes in equity and cash flows for the years concluded on such dates, and the corresponding notes to the consolidated financial statements.

Administration’s Responsibility for the Consolidated Financial Statements

The Administration is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). This responsibility includes the design, implementation and maintenance of a relevant internal control for the preparation and fair presentation of the financial statements that are free from material misrepresentations, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conduct our audits in accordance with auditing standards generally accepted in Chile. Such standards require that we plan and perform our audit work in order to obtain reasonable degree of assurance that the consolidated financial statements are exempt from material misrepresentations.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misrepresentations of the consolidated financial statements whether due to fraud or error. When making these risk assessments, the auditor considers the relevant internal control for the preparation and reasonable presentation of the consolidated financial statements of the entity in order to design audit procedures that are appropriate to the circumstances, but without the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express such king of opinion. An audit also includes evaluating how appropriate are the accounting policies used and reaso- nableness of the significant accounting estimates made by the Administration, as well as evaluating the overall presentation of the consolidated financial statements.

We consider that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the abovementioned consolidated financial statements reasonable present, in all material respects, the financial situation of Australis Seafoods S.A. and subsidiaries as of December 31, 2012 and 2011, the results of its operations and the cash flows of the years con tatements S inancial F onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

AUSTRALIS SEAFOODS S.A. AND SUBSIDIARIES Classified Consolidated Financial Statement The Notes attached to numbers 1 to 34 are part of these consolidated financial statements

ASSETS Note As of Dec, 31, 2012 As of Dec, 31, 2011 EQUITY AND LIABILITIES As of Dec, 31, 2012 As of Dec, 31, 2011 ThUS$ ThUS$ ThUS$ ThUS$ Current Assets Liabilities Cash and cash equivalents 6 15,527 51,480 Current Liabilities Other non-financial assets, current 551 426 Other financial liabilities, current 18 29,075 16,445 Trade and other accounts receivable, current 8 14,410 16,864 Trade and other accounts payable, current 19 64,481 51,330 Accounts receivable from related entities, current 9 3,826 5,751 Accounts payable to related entities, current 9 363 3,893 Inventories 10 14,849 11,506 Provision Employee Benefits, current 20 656 2,604 Biological Assets, current 11 66,217 78,797 Total current liabilities 94,575 74,272 Tax assets 12 13,493 7,945 Total Current Assets 128,873 172,769 Non-current liabilities Other financial liabilities, non-current 18 91,677 65,725 Non-current Assets Deferred tax liabilities 17 - 7,353 Other non-financial assets, non-current 13 8,013 7,535 Provision Employee benefits, non-current 20 - 1,507 Investments accounted for using equity method 14 8,120 7,612 Other accounts payable, non-current 19 1,000 - Intangible assets other than goodwill 15 17,505 14,456 Total non-current liabilities 92,677 74,585 Property, plant and equipment 16 75,340 60,373 Biological Assets, non-current 11 24,577 28,860 Equity Deferred tax assets 17 3,952 2,476 Equity attributable to owners of the controller 79,128 145,224 Total Non-Current Assets 137,507 121,312 Non-controlling interests - - Total equity 79,128 145,224 Total Assets 266,380 294,081 Total equity and liabilities 266,380 294,081 tatements S inancial F onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

AUSTRALIS SEAFOODS S.A. AND SUBSIDIARIES AUSTRALIS SEAFOODS S.A. AND SUBSIDIARIES Consolidated Income Statement, by Function Consolidated Statement of Comprehensive Income

For the year ended For the year ended Dec, 31, 2012 Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2012 Note ThUS$ ThUS$ ThUS$ ThUS$ Income Statement Profit (loss) Comprehensive Income Revenue on ordinary activities 24 121,749 163,664 Cost of Sales (156,908) (113,315) Profit (Loss) (66,096) 27,429 Gross Profit pre Fair Value (35,159) 50,349 Components of other comprehensive income, before taxes (Debit) Credit to Fair Value Earnings of Biological Assets harvested and sold 11 (6,767) (23,479) (Debit) Credit to Fair Value Earnings for growth of Biological Assets 10-11 (19,643) 23,420 Currency translation differences Gross Profit (61,569) 50,290

Other income, by function 25 2,094 450 Profits (losses) on currency translation, before tax - - Distribution costs 26 (4,889) (2,025) Administrative expenses 27 (7,745) (8,317) Other comprehensive Income, before taxes, currency translation differences - - Other expenses, by function 25 (11,916) (1,700) Financial Income 1,430 1,921 Other components of other comprehensive income, before taxes - - Financial Costs 28 (3,428) (1,901) Share of profit (loss) of associates and joint ventures accounted for using equity Other comprehensive income - - 14 508 87 method Foreign exchange differences 29 4,313 (4,680) Total comprehensive income (66,096) 27,429

Profit (loss), before taxes (81,202) 34,125 Total comprehensive income attributable to Tax expense (income) 17 15,106 (6,696) Comprehensive income attributable to owners of the controller (66,096) 27,429 Profit (Loss) from continuing operations (66,096) 27,429 Profit (Loss) from discontinued operations Comprehensive income attributable to non-controlling interests - -

Profit (Loss) (66,096) 27,429 Total comprehensive income (66,096) 27,429 Profit (Loss) attributable to Profit (Loss) attributable to owners of the parent (66,096) 27,429 Profit (Loss) attributable to owners of the controller

Profit (Loss) (66,096) 27,429 tatements

Earnings per share S

Earnings per basic and diluted share Profit (loss) per basic and diluted shares in continuing operations (0,047) 0,020 Profit (loss) per basic and diluted shares in discontinued operations inancial

Profit (loss) per basic share (0,047) 0,020 F onsolidated

The Notes attached to numbers 1 to 34 are part of these consolidated financial statements The Notes attached to numbers 1 to 34 are part of these consolidated financial statements C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

AUSTRALIS SEAFOODS S.A. AND SUBSIDIARIES AUSTRALIS SEAFOODS S.A. AND SUBSIDIARIES Consolidated Statement of Net Changes in Equity Consolidated Statement Cash Flows-Indirect Method December 31, 2012 to December 31, 2011

Equity ThUS$ ThUS$ Issued Retained attributable to 01-01-12 01-01-11 Capital Issuance Other Earnings owners of the Non-contro- 31-12-12 31-12-11 Share premiums Reserves (losses) controller lling interests Total Equity Cash Flows Statement ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ Cash Flows from (used in) operating activities Equity as of 01/01/2012 123,081 - (2,020) 24,163 145,224 - 145,224 Profit (loss) (66,096) 27,429 Increase (decrease) through changes in accounting policies ------Adjustments to reconcile Profit (loss) Adjustments for income tax expense (15,106) 6,696 Increase (decrease) through error correction ------Adjustments for decrease (increase) in inventories (13,638) (42,300) Restated Equity as of 01/01/2012 123,081 - (2,020) 24,163 145,224 - 145,224 Adjustments for decrease (increase) in trade accounts receivable (2,354) (6,602) Changes in Equity Adjustments for decrease (increase) in other operating accounts receivable (2,822) (803) Comprehensive Income Adjustments for increase (decrease) in trade accounts payable 21,394 6,837 Profit (losses) - - (66,096) (66,096) - (66,096) Adjustments for increase (decrease) in other operating accounts payables (1,918) - Adjustments for depreciation and amortization expense 3,785 2,771 Comprehensive Income - - (66,096) (66,096) - (66,096) Adjustments for provisions 924 2,767 Total Changes in Equity - - - (66,096) (66,096) - (66,096) Adjustments for unrealized foreign exchange losses (gains) (4,313) 4,680 Equity as of 12/31/2012 123,081 - (2,020) (41,933) 79,128 - 79,128 Adjustments for fair value losses (gains) 26,410 59 Other adjustments for non-cash items 9,095 - Adjustments for undistributed profits of associates (508) (87) Total adjustments to reconcile profit (loss) 20,949 (25,982) Equity Issued Retained attributable to Dividends paid (8,243) (9,248) Capital Issuance Other Earnings owners of the Non-contro- Share premiums Reserves (losses) controller lling interests Total Equity Income taxes paid (refunded) 3,039 Net Cash Flows from (used in) operating activities (50,351) (7,801) ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ Cash Flows from (used in) investing activities Equity as of 01/01/2011 46,652 - (2,020) 11,929 56,561 56,561 Other cash payments to acquire interests in joint ventures (3,525) (4,000) Increase (decrease) through changes in accounting policies ------Proceeds from charges to related entities - 9,248 Increase (decrease) through error correction ------Proceeds from carrying amounts from sales of property, plant and equipment - 8,782 Restated Equity as of 01/01/2011 46,652 - (2,020) 11,929 56,561 - 56,561 Purchase of property, plant and equipment (24,677) (32,877) Purchase of intangible assets (1,187) (2,666) Changes in Equity Purchase of other assets (long-term) - - Comprehensive Income Interest received 1,430 - Profit (losses) - - - 27,429 27,429 - 27,429 Net Cash Flows from (used in) investing activities (27,959) (21,513) Comprehensive Income - - - 27,429 27,429 - 27,429 Cash Flows from (used in) financing activities Equity issuance 7,790 61,687 - - 69,477 - 69,477 Proceeds from issuing shares - 69,477

Proceeds from long-term borrowings 21,100 5,292 tatements Dividends - - - (8,243) (8,243) (8,243) Proceeds from short-term borrowings 19,800 9,248 S Increase (decrease) through other contributions by owners 6,952 - - (6,952) - - - Proceeds from loans to related entities - - Capitalization Premiums 61,687 (61,687) - - - - - Payment of borrowings (5,335) (12,600) Total Changes in Equity 76,429 - - 12,234 88,663 - 88,663 Payment of liabilities of financial leases (1,518) (230) Closing Balance as of 12/31/2011 123,081 - (2,020) 24,163 145,224 - 145,224 Interest paid (1.870) (1,533) inancial Other cash inflows (outflows) from (used in) financing activities 10,180 (628) F Net cash flows from (used in) financing activities 42,357 69,026 Net increase (decrease) in cash and cash equivalents before effect of exchanges rate change (35,953) 39,712 Effects of variation in the exchange rate on cash and cash equivalents The effects derived from the application of Official Memorandum No. 456 of the SVS, are recorded as part of the balance of Other Reserves account. Net increase (decrease) in cash and cash equivalents (35,953) 39,712 Cash and cash equivalents at the beginning of the year 51,480 11,768 Cash and cash equivalents at the end of the year 15,527 51,480 onsolidated

The Notes attached to numbers 1 to 34 are part of these consolidated financial statements The Notes attached to numbers 1 to 34 are part of these consolidated financial statements C

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d) The purchase, sale, breeding, cultivation, import, export, marketing and distribution of all kinds of hydro-biological resources, and Notes to the Consolidated Financial Statements particularly salmonid species, and all businesses directly or indirectly related to the term of fishing and aquaculture activities. as of december 31, 2012 e) To invest in all kinds of real or personal property, tangible or intangible, such as shares, bonds and debentures, negotiable instruments, saving plans, shares or interests in all types of companies, whether commercial or civil, communities or associations and in all kinds of titles or marketable securities and, in general, to perform all acts and enter into all contracts conducive to such purpose; and f) To form, constitute, or integrate companies, firms, associations or corporations of any nature for the proper development of corporate NOTE 1 - GENERAL INFORMATION purposes. Australis Seafoods S.A., Chilean Tax No. 76.003.557-2 (hereinafter “Australis Seafoods” or the “Company”) is a corporation created by These financial statements of Australis Seafoods S.A. and subsidiaries consist of the Classified Consolidated Financial Statement, the public deed dated October 31, 2007, granted before the Notary of Santiago of Mr. Iván Torrealba Acevedo according Notarial Record Consolidated Statement of Income by Function, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Cash No.11.568-07. An abstract of the public deed was registered in the Commercial Record of the Real Estate Conservator of Santiago, on page Flows - Indirect Method, the Consolidated Statement of Net Changes in Equity and the Notes to the Consolidated Financial Statements. 48,775 No. 34,583,; and was published in the Official Gazette on November 21, 2007. The financial statements present an accurate image of the equity and financial situation as of December 31, 2012, and of the results of The Company is domiciled in Cerro el Plomo 5,680, office 403, Las Condes, notwithstanding the agencies, offices or branches established operations, changes in equity and cash flows that have occurred in the Company during the year ended December 31, 2012. both in the country and abroad. Its duration is indefinite. The Classified Financial Statement and associated Notes are presented in a comparative manner with the balances of December 31, 2011, On May 19, 2011, the Company was registered under number 1074 in the Securities Record kept by the Superintendencia de Valores y the consolidated statement of comprehensive income by function and the Consolidated Statement of Cash Flows - Indirect Method are Seguros (Superintendency of Securities and Insurance). presented by the cumulative years ended December 31, 2012 and 2011, and also the Consolidated Statement of Net Changes in Equity of The capital of the Company is one hundred and eighty four million four hundred and seventy seven thousand (ThUS$184.477 (One) divided into the year ended December 31, 2012 and 2011. 1,910,002,444 shares (one thousand nine hundred and ten million two thousand four hundred forty-four), that consist of the following: The consolidated financial statements of Australis Seafoods S.A. were prepared on a going concern basis. ThUS$ N° of shares The consolidated financial statements of Australis Seafoods S.A. and subsidiaries for the year ended December 31, 2012, were approved by Subscribed and paid-in capital 123,081 1,400,002,444 its Board of Directors at the Meeting held on March 4, 2013. Subscribed Capital* 1,097 3,000,000 Unsubscribed Capital 60,299 507,000,000 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Total Capital 184,477 1,910,002,444 Below are set forth the main accounting policies adopted for the elaboration of the consolidated financial statements, which will be applied * Subscription value of 3,000,000 shares that has not been paid. Thus, the amount of ThUS$1,058 is part of the greater value obtained in the placement uniformly to all periods disclosed by these financial statements. of new shares, that was capitalized in the Extraordinary Shareholders Meeting held on October 28, 2011 2.1 Preparation Australis Seafoods is the holding company of a group of four subsidiaries: Landcatch Chile S.A., Australis Mar S.A., Piscicultura Río Maullín These consolidated financial statements of Australis Seafoods S.A. as of December 31, 2012, have been prepared in accordance with the SpA and Comercializadora Australis SpA. This structure was defined at the end of 2010, in order to focus and promote the different International Financial Reporting Standards (IFRS). The Company has adopted the International Financial Reporting Standards as of businesses of the Group, that is, the freshwater business through Landcatch Chile S.A. and the seawater business through Australis Mar S.A. January 1, 2011; therefore, the date of transition to these standards is January 1, 2010. The financial statements as of December 31, 2012, This, bearing in mind that the previous structure of the group considered two subsidiaries for the freshwater business, one subsidiary for have been prepared to comply with the requirements of the Superintendency of Securities and Insurance. seawater weight gaining business in addition to other subsidiaries, and which took away efficiency from the development of the business According to the provisions of IFRS 1, the transition date of Australis Seafoods S.A. and subsidiaries is January 1, 2010, and the date of of the Group. adoption is January 1, 2011. Subsequently, in July 2011 Comercializadora Australis SpA was incorporated, whose main corporate purpose is the investment in personal The preparation of consolidated financial statements in accordance with IFRS requires the use of certain accounting estimates and criteria. property assets. On December 9, 2011, this company acquired 50% of True Salmon Pacific Holding Co.; company that, in turn, owns 100% It also requires the Administration to exercise its judgment in the process of applying the Company’s accounting policies. tatements

of corporate rights or shares of True Nature Seafoods Inc. and South Pacific Specialities LLC, entities through which the Group develops its S business of marketing fish and seafood products in the USA and Canada. Note 4 sets forth the areas involving a higher degree of judgment and complexity, or areas where assumptions and estimates are significant to the consolidated financial statements.

At the date of these financial statements there are no material uncertainties regarding events or conditions that may cast significant doubt

As defined in its By-Laws, the corporate purpose of the Company is: inancial upon the possibility of the entity continuing to operate normally as a going concern company.

a) The import, export, distribution, presentation and marketing of all kinds of merchandise, goods and products of any kind. F b) The purchase, sale, exchange, lease and transfer of all kinds of real and personal property, aquaculture concessions, fishing and In order to facilitate comparison, there have been some minor reclassifications to the consolidated financial statements of previous years. aquaculture authorizations, rights and other similar goods. c) The provision of all kinds of services, on its own or on third parties’ behalf, and consultancy services in general including, among others, those related to fishing and aquaculture. onsolidated C

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2.2. New issued standards and interpretations To record the acquisition of subsidiaries the acquisition-cost method is used. The cost of acquisition is the fair value of the assets delivered, equity instruments issued and liabilities incurred or assumed as of the date of the exchange, plus costs directly attributable to the acquisition. a) The following standards, interpretations and amendments are mandatory for the first time and applicable to the financial period Identifiable acquired assets and identifiable liabilities and contingencies assumed in a combination of businesses are initially valued at fair beginning January 1, 2012: value at the date of acquisition, irrespective of the extent of the non-controlling interests. The excess cost of acquisition above the fair value Standards And Interpretation Mandatory For Periods of the Company’s interest in the net identifiable acquired assets is recognized as lower value or goodwill. If the cost of acquisition is less than Beginning On the fair value of the net assets of the acquired subsidiary, the difference is recognized directly in the income statement. Amendment- IAS 12 — “Income Taxes” January 1, 2012 Inter-company transactions, balances and unrealized profits of transactions between related entities are eliminated. Unrealized losses are IFRS 1 — “First-time Adoption of International Financial Reporting Standards” July 1, 2011 also eliminated, unless the transaction provides evidence of a loss caused by impairment of the transferred asset. Where it is necessary to IFRS 7 — “Financial Instruments: Disclosures” July 1, 2011 ensure the consistency with the policies adopted by Australis Seafoods S.A. and subsidiaries, accounting policies of the subsidiaries are The adoption of the abovementioned standards, amendments and interpretations does not have a significant impact on the consolidated amended. financial statements of the Company. Below is a detail of the companies included in the consolidated financial statements: b) New issued standards, interpretations and amendments not effective for 2012, regarding which there has been no early adoption. As of Dec. 31, 2012 Standards And Interpretation Mandatory For Periods Beginning As of December. 31, On Functional Direct % Indirect Total % Name of the company RUT Country Currency % 2011% IAS 19 — Employee Benefits January 1, 2013 Australis Mar S.A. 76.003.885-7 Chile USD 99.95 0.05 100.00 100.00 IAS 27 — Consolidated and Separate Financial Statements January 1, 2013 Pisc. Río Maullín Spa 76.082.694-4 Chile USD 100.00 - 100.00 100.00 IFRS 9 — Financial Instruments January 1, 2015 Landcatch Chile S.A. IFRS 10 — Consolidated Financial Statements January 1, 2013 (ex Pisc. Río Calle Calle S.p.A.) 76.090.483-K Chile USD 99.9998 0.0002 100.00 100.00 IFRS 11— Joint Arrangements January 1, 2013 Comercializadora Australis Spa 76.126.907-0 Chile USD 100.00 - 100.00 100.00 IFRS 12— Disclosure of Interests in Other Entities January 1, 2013 Chile Seafoods S.A. 96.943.600-0 Chile USD - 100.00 100.00 100.00 IFRS 13 — Fair Value Measurement January 1, 2013 Inversiones Caiquenes Ltda. 76.043.420-5 Chile USD - 100.00 100.00 100.00 IFRIC 20 — Stripping Costs in the Production Phase of a Surface Mine January 1, 2013 Salmones Gama Ltda. 76.065.730-1 Chile USD - 100.00 100.00 100.00 Amendment to IAS 1 — Presentation of Financial Statements July 1, 2012 Procesadora de Alimentos Amendment to IFRS 7 — Financial Instruments: Disclosures January 1, 2013 76.126.902-K Chile USD - 100.00 100.00 100.00 Australis SPA Amendment to IAS 32 — Financial Instruments: Presentation January 1, 2014 Salmones Galway Ltda. 76.266.620-0 Chile USD - 100.00 100.00 100.00 Amendment to IFRS 1— First-time Adoption of International Financial Reporting Standards January 1, 2013 Salmones Mitahues Ltda. 76.266.600-6 Chile USD - 100.00 100.00 100.00 Improvements to Amendments to IFRS in May 2012 – IRFS 1 – IAS 1- IAS 16 January 1, 2013 Salmones Islas del Sur Ltda. 76.787.110-4 Chile USD - 100.00 100.00 - Amendment to IAS 27 - IFRS 10 and IFRS 12 January 1, 2014 Acuícola Cordillera Ltda. 76.787.060-4 Chile USD - 100.00 100.00 - Amendment to IAS 32 - IAS 34 January 1, 2013 Salmones Alpen Ltda. 76.005.426-7 Chile USD - 100.00 100.00 - Amendment to IFRS 10 , IFRS 11 and IFRS 12 January 1, 2013 Salmones Wellington Ltda. 76.005.430-3 Chile USD - 100.00 100.00 - Procesadora de Alimentos ASF SPA 76.230.946-7 Chile USD - 100.00 100.00 - The Administration of the Company considers that the adoption of standards, amendments and interpretations will not have a significant Inversiones Ovas del Pacífico Ltda. 76.088.812-5 Chile USD - 100.00 100.00 100.00 impact on the consolidated financial statements of the Company in the period their initial application. Piscicultura Río Salvaje S.A. 76.847.050-2 Chile USD - 100.00 100.00 100.00 tatements S 2.3 Consolidation At the end of 2010, Australis Seafoods S.A. (Holding Company) restructured the group of companies in order to simplify its operations, a) Subsidiaries separating the freshwater and the seawater weight gaining businesses. This restructure considered the sale of corporate interests within in the Group, leaving a simpler organization that concentrated the freshwater business in Landcatch Chile S.A. (previously denominated Subsidiaries are all entities over which Australis Seafoods S.A. and subsidiaries, have the power to control the financial and operating

Piscicultura Río Calle Calle SpA) and the seawater weight gaining business in subsidiary Australis Mar S.A. inancial policies, which are generally accompanied by a corporate interest of more than half of the voting rights. When assessing whether the group F of companies organized under Australis Seafoods S.A., hereinafter the “Group”, control another entity, the existence and effect of potential As a result of the restructuring, among others, the following transactions were performed: On December 16, 2010, Australis S.A. sold one voting rights that can currently be exercised or converted is taken into consideration. Subsidiaries are consolidated as from the date when share of Landcatch Chile S.A. to Piscicultura Río Calle Calle SpA. Also, on December 20, 2010, at a General Extraordinary Shareholders control is transferred, and are excluded from consolidation as of the date that control ceases to be held by the Company. Meeting it was decided to increase the capital of Piscicultura Río Calle Calle SpA. in ThUS$10,723 -through the issuance of the corresponding shares. Such capital increase was subscribed and paid in full by Australis Seafoods S.A. and paid with all the shares it held in Landcatch Chile S.A. (Old) plus a promissory note payable on demand. Due to the latter, Piscicultura Río Calle Calle SpA became the owner of 100% onsolidated C

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of the shares of Landcatch Chile S.A. (Old), so Landcatch Chile S.A. (Old) was dissolved and Piscicultura Río Calle Calle SpA became its b) Transactions and balances legal successor. Additionally, in the same event, Río Calle Calle Piscicultura SpA, was transformed into a privately owned stock corporation Foreign currency transactions are translated into the functional currency using the exchange rates applicable on the dates of the transactions. denominated “Landcatch Chile S.A.” Profits and losses resulting from the liquidation of such transactions and the translation to other exchange rates at the closing of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. On December 31, 2010, a Special Shareholders’ Meeting approved the division of Australis Seafoods S.A. into two companies. A new corporation denominated “Inversiones en Acuicultura S.A.” was created, while the legal continuator kept the corporate name and RUT. c) Foreign currency exchange rate In the same Meeting and valid as of January 1, 2010, it was agreed to pay the new company’s equity and the allocation of the assets and As of December 31, 2012, and December 31, 2011, the exchange rates of the main currencies used in the accounting processes of Australis liabilities of the divided company that would correspond to the new company. The new company’s equity and, therefore, the amount in Seafoods S.A. and subsidiaries, in relation to the US Dollar, are the following: which the capital of Australis Seafoods S.A. was reduced was ThUS$9,714, which corresponds to the investment in Australis S.A. and its As of December 31, 2012 As of December 31, 2011 corresponding negative goodwill. According to the latter, Australis Seafoods S.A. no longer was the owner of Australis S.A. Closing Accumulated Monthly Average Closing Accumulated Monthly Average Subsequently, in July 2011, the Company acquired all the shares of Comercializadora Australis SpA, entity that -at that time- had no activity. Chilean Peso 479.96 486.64 519.2 483.54 Through this company and on December 9, 2011, it was acquired 50% of True Salmon Pacific Holding Co. which –in turn- owns 100% of the corporate rights or shares of True Nature Seafoods Inc. and South Pacific Specialities LLC, companies through which it is developed the 2.6 Property, plant and equipment marketing of fish and seafood products in the United States and Canada. Fixed assets of the Company consist of land, buildings, infrastructure, machinery, equipment and other fixed assets. The main fixed assets On March 23, 2012, subsidiary of Australis Mar S.A., incorporated the following subsidiaries: (i) Acuícola Cordillera Limitada, (ii) Salmones of Australis Seafoods S.A. and subsidiaries are land, freshwater piscicultures, with their corresponding equipment and machinery and the Alpen Limitada, (iii) Salmones Wellington Limitada and (iv) Salmones Islas del Sur Limitada, all of which corporate purpose is aquaculture. seawater weight gaining centers. The incorporation of these subsidiaries corresponds to the growth process of the operations of the Company. Buildings, plants, equipment and machinery are recognized initially and subsequently, at historical cost less their accumulated depreciation b) Transactions and non-controlling interests and impairment loss, if any. When there are non-controlling interests they are presented in the Consolidated Statement of Net Changes in Equity. Profit or loss For purposes of transition to IFRS, as permitted by IFRS 1, the most important land and buildings of the Company’s freshwater subsidiary attributable to a non-controlling interest is presented in the Consolidated Statement of Income by Function as part of the profit (loss) of were revalued as of January 1, 2010. Valuations were based on market value. Subsequent valuation of the same is made in accordance with the financial year. The results of transactions between non-controlling shareholders and the shareholders of companies where ownership is IAS 16, using the historical cost method. Seawater fixed assets are shown both initially and subsequently at the corresponding historical shared are recognized within equity and, therefore, shown in the Consolidated Statement of Net Changes in Equity. cost, less any accumulated depreciation and impairment loss, if any.

c) Joint ventures Subsequent costs (replacement of parts, upgrades and extensions) are included in the value of the initial asset or are recognized as a separate Investments in joint ventures are integrated by using the equity-value method as described in IAS 30 paragraph 38. asset, only when it is probable that future economic benefits associated with the assets’ items will flow to the Group and the cost of the item can be measured reliably. The value of the replaced part is written-off in the account. All other repairs and maintenance are a debited from 2.4 Financial Information, by operating segment net income(loss) of the period in which they are incurred. IFRS 8 requires that entities adopt the “Administration’s approach” to disclose information of the results of its operating segments. In Costs derived from daily maintenance and common repairs are recognized as net income(loss), but not the replacement of components general, this is the information that the Administration uses internally for assessing the performance of segments and deciding how to of important or strategic spare parts, which are capitalized and depreciated over the remaining useful life of the asset, based on the allocate resources to the same. component’s approach. Australis Seafoods S.A. and subsidiaries present information by segments (which correspond to the business areas) based on the financial Depreciation of assets is calculated using the straight-line method, being systematically distributed throughout its useful life. Such useful information made available to decision makers in relation to matters such as measuring profitability and allocation of investments, and life has been determined based on the expected natural impairment, technical or commercial obsolescence arising from changes and/or based on the differentiation of products as set forth in IFRS 8 - Operating Segments. This information is detailed in Note 5. improvements in production and changes in the market demand for the products obtained with such assets. Segments to be disclosed by Australis Seafoods S.A. and subsidiaries are: Land is not depreciated. - Salmon in freshwater (freshwater). tatements S - Salmon and trout in seawater (seawater).

2.5 Foreign currency transactions a) Presentation and functional currency inancial

Items included in the financial statements of Australis Seafoods S.A. and subsidiaries are valued using the currency of the main economic F environment in which the entity operates (functional currency). The functional currency of Australis Seafoods S.A. and subsidiaries is the US Dollar, which is also the currency of presentation of this consolidated financial statement. onsolidated C

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The estimated technical useful life and residual values are: Valuation model The evaluation is reviewed for each pisciculture and is based on the existing fish biomass at the end of each financial year (inventory). The Freshwater Seawater detail includes the total number of fish being bred, average weight and cost of the fish biomass. In the calculation, the value is estimated Useful life Average Residual value Average Residual value years ThUS$ years ThUS$ considering the average weight of the biomass, which, in turn, is multiplied by the value per kilo reflected by the market price. Market price Constructions 13 142 - - is obtained from a range of prices from the latest sales of the month. Plant and equipment 7 234 10 661 Moreover, biological assets associated with the freshwater stage, i.e. broodstock, eggs, fry and smolts, are valued at the cost accumulated Information Technology Equipment 3 3 - - up to the closing date. Likewise, fish in the weight gaining stage of smaller size are valued at cost since there is no active market for them. Fixed and accessory installations 4 3 10 20 Notwithstanding the above, the Company performs an impairment test of the biomass in small breeding fish and, if there is impairment, they are debited from the income statement. The residual value and useful life of assets are reviewed and adjusted, if appropriate, at each closing of the financial statement in order to obtain a remaining useful life adequate to the value of the assets. At the end of the year the Company values the impairment that may exist in the biological assets that have not reached the required weight for their fair value valuation through a projection of costs and prices. If the costs exceed the estimated realizable value, a provision for When the value of an asset exceeds its estimated recoverable value, its value is reduced immediately to its recoverable amount, through the impairment of biological assets is recorded. application of impairment tests. Assumptions used to determine fair value of fish being bred. Profits or losses from the sale of property, plant and equipment are determined by comparing the proceeds from the sale with the book value The estimation of fair value of fish biomass will always be based on uncertain assumptions, even if the Company has sufficient experience of the assets (net of depreciation) and are included in the income statement. in the consideration of such factors. Estimations are applied considering the following items: fish biomass volume (applying the average mortality of the subsidiary), average weight of the biomass, weight distribution at harvest and market prices. 2.7 Biological assets Salmonid biological assets of the species Atlantic and Coho, as well as trout, in a seawater weight gaining stage are measured at fair value less Fish biomass volume estimated point of sale costs, by applying weight considerations listed further on in this same section; except when the fair value cannot be The volume of fish biomass is an estimate based on the number of smolts sown in the water, the estimated growth at the time, reliably determined in accordance with the definitions contained in IAS 41 and, for which, finding an active market for these assets should application of the mortality observed in the period, etc. The uncertainty of the volume of biomass is normally lower when there are no mass be considered in the first place. mortality events during the cycle or if the fish for some reason have presented diseases.

Likewise, biological assets associated with the freshwater stage, i.e. broodstock, eggs, fry, smolts and small fish in seawater, are valued at Together with the above, it must be noted that this volume used for calculating the biological asset- contemplates fish with an average cumulative cost up to the closing date. weight higher than the cuts already defined for each type. This translates into a very close estimate of the final volume that will be harvested.

Direct and indirect costs incurred in the production process are part of the biological asset’s value through activation. The accumulation of Market Prices such costs at the end of each period is compared to the fair value of the biological asset. The assumption of market prices is important for evaluation. In the case of subsidiary Australis Mar S.A. and for the years ended December 31, 2012 and December 31, 2011, the average prices of the latest sales made by the subsidiary were used. Changes in fair value of these biological assets are reflected in the income statement of the financial year. Biological assets, whose projected harvest date is less than 12 months, are classified as current assets. 2.8 Intangible assets other than goodwill a) Aquaculture concessions The calculation of fair value is based on market prices for harvested fish and adjusted by distribution differences of size and quality or Aquaculture concessions acquired from third parties are shown at historical cost. The useful life of such concessions is mostly indefinite, normal harvest weight ranges, taking into account the weight considerations listed in the following table. This price is adjusted by harvest, since they have no expiration date or a predictable useful life, so they are not amortized. transportation to destination and processing costs in order to take it to its value and condition of bled fish at breeding stage). Thus, the evaluation considers the life cycle stage, current weight and the expected distribution by size upon harvest of the fish. This estimate of fair Concessions obtained under the new Fishery Law, have a duration term of 25 years -and are renewable according to the compliance of value is included in the income statement of the Company. certain health and environmental conditions. They are amortized based on their useful life.

Below is a summary of the valuation criteria: b) Software tatements

Acquired software licenses are capitalized based of the costs incurred to acquire and bring the specific software into use. These costs are S Stage Asset Valuation amortized over an estimated useful life of 4 years. Freshwater broodstock Direct and indirect accumulated cost Freshwater eggs Direct and indirect accumulated cost Costs associated with developing or maintaining computer software programs are recognized as expenses when incurred.

Freshwater fry and smolts Direct and indirect accumulated cost in its different stages Costs directly associated with the production of unique and identifiable software controlled by Australis Seafoods S.A. and subsidiaries, inancial

Seawater Fish Fair Value according to the following: and will likely generate economic benefits that will exceed the costs for more than one year, are recognized as intangible assets. Direct costs F • Atlantic Salmon, as of 4.3 kilos in water (4.0 bled), time HON include the costs of the staff that develop the software and any kind of expenses incurred in its development or maintenance. average price. • Coho Salmon, as of 2.5 kilos in water (2.3 bled), H&G average price.

• Trout, as of 2.5 kilos in water (2.3 bled), H&G average price. onsolidated C

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c) Water Rights b) Loans and accounts receivable These are water exploitation rights, associated with technical projects of the piscicultures that have an indefinite nature and therefore are Loans and accounts receivable are non-derivative financial assets with fixed or determinable payments not listed in an active market. Those not amortized. Water rights acquired from third parties are shown at their historical cost. items with maturities of less than 12 months are classified as current assets. The items with maturities greater than 12 months are classified as non-current assets. d) Research and development expenses Research expenses are recognized as an expense when incurred. Costs incurred in development projects (relating to the design and testing Loans and accounts receivable are included in trade and other accounts receivable. Initially they must be recorded at fair market value, of new or improved products) are recognized as intangible assets when the following criteria are met: acknowledging a financial result for the financial year between their recognition and subsequent valuation. In the specific case of trade accounts, other trade and other accounts receivable, we chose to use the nominal value, taking into consideration the short collection a) Technically, it is possible to complete the production of the intangible asset so it can be available for use or sale. periods of the Company. b) The Administration has the intention to complete the intangible asset to use or sell it. c) It is to use or sell the intangible asset. c) Recognition and valuation of financial assets d) It is possible to demonstrate the way in which the intangible asset will generate probable economic benefits in the future. Acquisitions and transfers of financial assets are recognized on the date they are negotiated, that is, on the date Australis Seafoods S.A. and e) There is availability of the adequate technical, financial or other resources, to complete the development and to use or sell the intangible asset. subsidiaries, undertake to acquire or sell the asset. f) It is possible to valuate, in a reliable way, the expenditure attributable to the intangible asset during its development. i) Initial Recognition 2.9 Interest Costs Financial assets not carried at fair value through profit or loss, are initially recognized at fair value plus the transaction costs. Financial assets If applicable, interest costs incurred for the construction of any qualifying asset are capitalized during the period of time required to at fair value carried through profit or loss are initially recognized at fair value, and the transaction costs are shown in the results. complete and prepare the asset for its intended use. Other interest costs are shown in the income statement. ii) Subsequent valuation 2.10 Losses for impairment of non-financial assets Financial assets available for sale and financial assets carried at fair value through profit or loss are subsequently registered at fair value (with Assets that have an indefinite useful life are not subject to amortization and are annually tested for impairment losses. a counter item in other comprehensive income and results, respectively). Loans and accounts receivable are recorded at amortized cost according to the effective interest rate method. Depreciable assets are tested for impairment losses whenever an event or changes in circumstances of the business indicate that the book value of the assets may not be recoverable. An impairment loss is recognized when the book value is greater than its recoverable value. Financial assets are written-off for accounting purposes when the rights to receive cash flows from the investments have expired or have been transferred, and Australis Seafoods S.A. and subsidiaries have substantially transferred all risks and rewards derived from their ownership. The recoverable value of an asset is the greater between an asset’s fair value less costs of sale and its value while in use. For the purposes of valuating losses caused by impairment of value, assets are grouped at the lowest level for which there is separate Cash Generating Unit Australis Seafoods S.A. and subsidiaries evaluate on the date of each financial statement if there was objective evidence that a financial asset (CGU). or group of financial assets may have been impaired.

Non-financial assets that -other than acquired goodwill- suffered a loss for impairment are reviewed at each closing date of the financial 2.12 Inventories statement to verify if there has been any reversal of losses. Inventories are valued at cost of acquisition or net realizable value, whichever is lower.

Losses caused by impairment of value can be reversed for accounting purposes only up to the amount of the losses recognized in previous Cost is determined by the weighted average price method (WAP). financial years, so the book value of these assets does not exceed the value that they would have had if such adjustments had not been made. The cost of finished goods and work in process goods includes costs of raw materials (value of harvested biological assets), direct labor costs, This reversal is shown in other income (loss). other direct costs and general production costs (based on a normal operating capacity). 2.11 Financial assets Net realizable value is the estimated price of sale in the ordinary course of business, less applicable variable costs of sale. Australis Seafoods S.A. and subsidiaries classify their financial assets in the following categories: at fair value through profit or loss, loans and accounts receivable, financial assets held to maturity and available for sale. The classification depends on the purpose for which the financial Obsolete or slow-moving products are recognized at their realization value. assets were acquired. The Administration determines the classification of its financial assets upon their initial recognition. 2.13 Trade and other accounts receivable Classification of financial assets: Trade accounts receivable are recognized at their nominal value, since the average maturity terms do not exceed 90 days. Income associated tatements S a) Financial assets at fair value through profit or loss with a longer payment term, if any, is recorded as deferred revenue in the current liabilities and the accrued portion is recorded as financial Financial assets at fair value through profit or loss are financial assets held for negotiation. Financial assets are classified in this category if income. As of December 31, accounts receivable held by the Company do not exceed 90 days. acquired mainly for the purpose of being sold in the short term. Assets in this category are classified as current assets. Additionally, estimations are made for such accounts receivable of doubtful collection based on an objective review of all outstanding

amounts at closing of the financial statements. Impairment losses related to doubtful credits are registered in the comprehensive income inancial

statement in the period in which they occur. Commercial loans are included in current assets as Trade and other accounts receivable, to the F extent that their estimate collection term does not exceed 1 year, as from the date of the financial statement. 2.14 Cash and cash equivalents Australis Seafoods S.A. and subsidiaries consider as cash and cash equivalents the cash such balances held on hand, in bank current accounts, in fixed-term deposits and other financial investments (highly liquid securities) with a maturity of less than 90 days, as from the onsolidated C

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date of the investment. Also included in this item are own cash management investments, such as repurchase and resale agreements whose Profits or losses due to changes in actuarial variables, if any, are recognized in the income statement of the period in which they arise. maturity is consistent with the definitions above. Moreover, the Company recognizes a liability for bonuses granted to top executives, when it is contractually obliged or where past practice The use of bank overdraft lines is included in Other financial liabilities. has created an implicit obligation. 2.15 Capital 2.20 Provisions The capital is represented by ordinary shares of a single series. Australis Seafoods S.A. and subsidiaries recognize a provision when they are contractually obliged and when there is a past practice that has created an assumed obligation. The statutory minimum dividend on ordinary shares is recognized as lower value on equity when they are earned. 2.16 Trade and other accounts payables Provisions for onerous contracts, litigation and other contingencies are recognized when: Trade accounts payables are recognized initially at fair value and subsequently valued at their amortized cost using the effective interest rate (i) Australis Seafoods S.A. and subsidiaries have a present obligation, legal or implicit, as a result of past events; method when they have a payment term longer than 90 days. Shorter term payments they are registered at nominal value for not having (ii) It is probable that an outflow of resources will be required to settle the obligation; and significant differences with their fair value. (iii) The value has been reliably estimated. 2.17 Other financial liabilities Obligations with banks and financial institutions are initially recognized at fair value, net of costs incurred in the transaction. Subsequently, Provisions are valued at present value of the expected expenditures required to settle the obligation, using the best estimate of Australis external resources are valued at amortized cost and any difference between the proceeds (net of costs to obtain them) and the redemption Seafoods S.A. and subsidiaries. The discount rate used to determine present value reflects current market valuations as of the date of the value is recognized in the income statement over the term of the debt, according with the effective interest rate method. The effective financial statements, as of the temporary value of money as well as the specific risks associated with the particular liability. interest rate method consists of applying the relevant market rate for debt with similar characteristics to the value of the debt (net of costs 2.21 Revenue recognition to obtain them). Ordinary revenues include the fair value of the considerations received or receivable for the sale of goods and services in the ordinary It should be mentioned that if the difference between the nominal value and the fair value is not significant, the nominal value is used. course of business of the Company. Ordinary revenues are presented net of sales tax, returns, rebates and discounts (if available) and after eliminating the sales within the Group. 2.18 Income tax and deferred taxes The expense for tax on income of the year includes Australis Seafoods S.A. and subsidiaries taxes, based on the taxable income of the period, Australis Seafoods S.A. and subsidiaries recognize revenues when the amount can be reliably valued, it is probable that future economic together with tax adjustments for previous years and the change in deferred taxes. benefits will flow to the entity and specific conditions are met for each of the Group’s activities as described follows:

Deferred taxes are calculated, according to the liability method, based on the temporary differences arising between the assets and liabilities a) Sale of goods tax basis and their amounts registered in the Company books. However, if the deferred taxes arise from an initial recognition of an asset or Revenues from sales of goods are recognized when an entity of the Group has transferred to the buyer the risks and benefits of the products liability in a transaction other than a business combination that -at the time of the transaction- does not affect either the accounting result of such goods and does not retain the right to dispose of them, nor maintain effective control. Usually, this means that sales are registered nor the taxable profit or loss, then it is not registered. at the time of the transfer of risks and benefits to clients in accordance with terms agreed in the trade agreements.

Deferred tax is determined by using tax rates (and laws) enacted or almost to be enacted and highly likely to be enacted, in each country of b) Interest income operation, on the date of financial statement and that are expected to be applied when the corresponding asset affected by the deferred tax Interest income is recognized using the effective interest rate method. is realized or the deferred tax liability is settled. c) Sale of services Deferred tax assets are recognized when it is probable that the entities of the Group will have sufficient tax benefits to offset with other Revenues from sales of services are registered when the service has been rendered. differences in the future. A service is considered rendered when it is received satisfactorily by the client. The Company does not record deferred taxes over temporary differences arising on investments in related companies since it controls the 2.22 Leases date on which they will revert. When a Group entity is the lessee– Financial Lease. tatements 2.19 Employee benefits S Australis Seafoods S.A. and subsidiaries lease certain fixed assets. Leases of fixed assets where the Company substantially has all the risks a) Employee holidays and benefits inherent to ownership, are classified as financial leases. Financial leases are capitalized at the beginning of the lease at the fair Australis Seafoods S.A. and subsidiaries recognize the expense for employee holidays by the accrual method, which are recorded at nominal value of the leased property or asset or at the present value of the minimum lease payments, whichever is lower. value. Each lease payment is allocated between the liability and the financial charges to obtain a constant interest rate on the outstanding balance inancial

b) Post-employment benefits F of the debt. Subsidiary Landcatch Chile S.A. keeps contracts with its corporate executives to whom it grants a compensation benefit for years of service under all circumstance in the event of a voluntary resignation or termination, thus this liability is recognized in accordance with technical The corresponding lease obligations, net of financial charges, are included in other financial liabilities. The financial cost interest is debited standards. Considering that the actuarial value does not significantly differ from the cost, the latter has been maintained with periodic from the income statement during the term of the lease so as to produce a constant periodic interest rate on the remaining balance of the evaluations in case some of the variables change. liability for each period. onsolidated C

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Assets acquired under financial leases are depreciated over their useful life or the term of the contract, the shorter of the two. b) Sale operations Risk: Australis Seafoods S.A. and subsidiaries operate with clients through letters of credit, advanced payments or with clients having excellent When executing sales with subsequent lease, the differentials generated according to the nature of the transaction are part of the value of credit behavior, as is demonstrated by the payment history of such clients. Indeed, during the past three years, uncollectible amounts of the asset, thus are included in the leased fixed assets and are amortized based on the useful life of the related leased assets. subsidiary Australis Mar S.A. have been ThUS$11. When a Group entity is the lessee– Operating Lease. During the year, subsidiary Landcatch S.A. registers an increased in provision of ThUS$176, due to a specific situation that is being resolved Leases where the lessor retains substantial part of all the risks and benefits derived from the ownership of the asset, are classified as legally. operating leases. Payments made under operating leases (net of any incentives received from the lessor) are debited from the income II. Liquidity Risk statement on a straight-line basis over the lease term. Liquidity risk arises from the potential imbalance between the need for funds (for financial and operating expenses, capital expenditures, 2.23 Dividend Policy debt maturities and dividend commitments) and the financing sources (revenues obtained from securities redemptions or financial As provided by the Corporations Law, the Company is required to distribute a minimum dividend of 30% of the profits, unless the placements, collection of trade accounts receivable and financing from financial institutions). The Company has a prudential management shareholders unanimously agree on an amount of less than the indicated percentage. policy of liquidity risks to maintain sufficient cash and marketable securities and an adequate availability of Banks financing.

Under IFRS, the recognition of an obligation in benefit of the shareholders must anticipate the closing date of the annual financial statements The following table details the committed contractual undiscounted flows of bank loans, financial leases and accounts payable, grouped by with the corresponding reduction of equity. their commitments as of December 31, 2012:

According to information reported to Superintendency of Securities and Insurance, in relation to Circular No. 1945, for the purpose of Between 1 Between 3 Between 1 More than 5 Total determining the distributable net income of the parent Company to be considered for the calculation of dividends with regards to 2012, and 3 months and 12 months and 5 years years the following will be excluded from the income: ThUS$ THUS$ THUS$ THUS$ THUS$ Bank Loans 1,122 28,719 87,445 6,477 123,763 i) Unrealized profits and losses, linked to the record of fair value of biological assets provided for in the accounting standard “IAS 41”, returning them to the net profits at the time of their realization. For this purposes, the portion of such increases of fair value of assets sold Trade and other accounts receivable 34,895 29,586 1,000 - 65,481 or disposed of by some other means shall be understood to be realized. Accounts payable to related entities - 363 - - 363

ii) The effects of deferred taxes associated with the items indicated in i) will have the same fate of the item that generate them. III. Market Risk 2.24 Environment Expenditures related to the improvement and/or investing in production processes that improve environmental conditions are recorded a) Exchange rate risk: as an expense in the period in which they are incurred. When such expenses are part of investment projects they are recorded as a greater Since most sales of the Group companies are made in US Dollars, there is an implicit risk involved in the valuation of this currency in terms value of the property, plant and equipment item. of the Chilean peso. Thus, both valuations and depreciations of local currency will directly affect the results of the Company, since part of its expenses are recorded in local currency. The Group has determined the following types of expenditures for environmental protection projects: There is sensitivity to the variation of the Yen due to sales made in the Asian market, which are covered by forward contracts to hedge the a) Costs associated with legal compliance of the activity. Some of these costs are: monitoring of pisciculture effluents, service of mortality exchange rate changes risk of yen/ US Dollar. removal, maintenance of effluent treatment plants, etc. As of December 31, 2012, the consolidated balance sheet of the Company had a net liability in Chilean pesos of approx. ThUS$7 so b) Additional expenses of the activities oriented to improve production processes. Some of these expenses are: installation of UV disinfection a variation of 5% increase of the exchange rate generates profits due to exchange rate of ThUS$0.3; and, in turn, a 5% decrease of the system, oceanographic data analysis, staff training on environmental issues, implementation of bio-security measures and control of exchange rate generates losses for the same amount. infectious vectors, etc. b) Interest rate risk:

NOTE 3- FINANCIAL RISK MANAGEMENT Interest rates fluctuations modify future flows of assets and liabilities referenced to a variable interest rate. tatements S The salmon business inherently involves a number of risk factors that, in one way or another, affect the development of the industry. Among Australis Seafoods S.A. and subsidiaries are exposed to interest rates risks, as the long-term financing is and amount to the 180-day LIBOR these factors, the following can be mentioned: plus an additional fixed spread for subsidiary Australis Mar S.A. For Landcatch Chile S.A., long-term debts have been acquired with fixed I. Credit risk rates. The Administration and the Board of Directors regularly follow-up on the conditions of these loans and evaluate the advisability of taking certain interest rate insurance in order to reduce the impact of changes in the 180-days LIBOR rate.

a) Cash surplus investment risks: inancial

The quality of the financial institutions with which Australis Seafoods S.A. and subsidiaries work, and the kind of financial products in As of December 31, 2012, the Group has a total bank debt with floating rates of ThUS$78,270. In a sensitivity analysis of the interest rates F which such investments are materialized define a low-risk policy of for the Company. on the capital of such bank debts, we can observe that a 1% increase or decrease per annum of the current rates would generate an effect on income at the end of the year of ThUS$782 more or less interest expense, as applicable. onsolidated C

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c) Market risk: Geographical distribution of non-current assets as of December 31, 2012, and December 31, 2011 is as follows: Salmon products fall into the category of commodities which, by definition, are subject to the price fluctuations of the international market. As of December 31, 2012 As of December 31, 2011 Given this, experience tells us that the sale prices of our products are subject to seasonal fluctuations that can generate a price increase or Freshwater Seawater Freshwater Seawater decrease, having cyclical variations over time. Salmon Salmon Total Salmon Salmon Total Geographical Distribution ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ NOTE 4- ACCOUNTING ESTIMATES AND JUDGMENTS Assets, non-current Chile 34,137 95,250 129,387 30,631 83,069 113,700 Estimates and criteria are constantly evaluated and based on historical experience and other factors, including the expectations of the Assets, non-current USA - 8,120 8,120 7,612 7,612 occurrence of future events that are considered reasonable under the circumstances. Assets, non-current 34,137 103,370 137,507 30,631 90,681 121,312

Australis Seafoods S.A. and subsidiaries make estimates and assumptions concerning the future. The estimates and assumptions that have a Profit by segment as of December 31, 2012 and December 31, 2011, are as follows: significant risk of causing a material adjustment to the balance of assets and liabilities within the next financial statement are shown below: a) Useful life of plants and equipment: As of December 31, 2012 As of December 31, 2011 The Administration of Australis Seafoods S.A. and subsidiaries determines the estimated useful life and related depreciation charges for Consoli- Consoli- Freshwater Seawater dation ad- Freshwater Seawater dation ad- its plants and equipments. Potential changes to estimations could occur as a result of technical innovations and competitor actions in Salmon Salmon justments Total Salmon Salmon justments Total response to severe industry cycles. The Administration will increase the depreciation charge when the useful life shorter than the previously ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ estimated useful life or will amortize or remove assets technically obsolete or non-strategic abandoned or sold. Revenue on ordinary operating activities 16,144 120,676 (15,071) 121,749 20,395 155,551 (12,282) 163,664 External Revenue b) Biological assets: 1,073 120,676 - 121,749 9,400 154,264 - 163,664 The accounting principles and the valuation model applied to the valuation of biological assets are described in Note 2.7. Internal Revenue 15,071 - (15,071) - 10,995 1,287 (12,282) - Cost of sales (13,585) (154,804) 11,481 (156,908) (14,681) (109,772) 11,138 (113,315) NOTE 5 – FINANCIAL INFORMATION, BY SEGMENTS Gross Profit pre Fair Value 2.559 (34,128) (3,590) (35,159) 5,714 45,779 (1,144) 50,349 The Company reports its financial information segmented in accordance with the provisions of IFRS 8 - “Operating Segments”. This (Debit) Credit to Fair Value Results of Biological Assets - (6,767) - (6.767) (23,479) (23,479) regulation establishes standards for reporting information by segments in the financial statements as well as disclosures about products and harvested and sold services, geographical areas and major clients. Operating segments are defined as components of an entity based on which separate financial (Debit) Credit to Fair Value Results for increase of Biological (1,980) (17,663) - (19,643) 23,420 23,420 Assets information is assessed regularly by the senior Administration for making decisions regarding the allocation of resources and assessment of the results. The Group segments financial information by business, identifying the following lines: Gross Profit 579 (58,558) (3,590) (61,569) 5,714 45,720 (1,144) 50,290 Other income, by function 52 2,042 - 2,094 74 376 - 450 a) Freshwater salmon cultivation (freshwater). Distribution costs - (4,889) - (4,889) - (2,025) - (2,025) b) Salmon and trout in seawater cultivation (seawater). Administrative expenses (2,688) (7,957) 2,900 (7,745) (2,868) (8,158) 2,709 (8,317) Other expenses, by function (2,888) (9,028) - (11,916) (251) (1,449) - (1,700) The assets and liabilities by segment as of December 31, 2012, and December 31, 2011, are as follows: Financial Income 24 1,406 - 1,430 2 1,919 - 1,921

As of December 31, 2012 As of December 31, 2011 Financial Costs (967) (2,461) - (3,428) (246) (1,655) - (1,901) Freshwater Seawater Freshwater Seawater Interest by asset method - 508 - 508 87 - 87 Salmon Salmon Salmon Salmon Exchange profit/(losses) (403) 4,716 - 4,313 586 (5,266) - (4,680) Financial Statement Segmented ThUS$ ThUS$ Total ThUS$ ThUS$ ThUS$ Total ThUS$ Profit (loss), before taxes (6,291) (74,221) (690) (81,202) 3,011 29,549 1,565 34,125 Assets Tax expense (income) 2,447 12,659 15,106 (419) (6,277) - (6,696) Assets, Current 15,097 113,776 128,873 27,307 145,462 172,769 Profit (Loss) from continuing operations (3,844) (61,562) (690) (66,096) 2,592 23,272 1,565 27,429 tatements

Assets, Non-current 34,137 103,370 137,507 30,631 90,681 121,312 S Profit (Loss) attributable to non-controlling interests ------Total Assets 49,234 217,146 266,380 57.938 236,143 294,081 Profit (Loss) attributable to owners of the controller (3,844) (61,562) (690) (66,096) 2,592 23,272 1,565 27,429 Net equity and total liabilities Liabilities, current 12,201 82,374 94,575 18,795 55,477 74,272 inancial Liabilities, non-current 27,064 65,613 92,677 25,330 49,255 74,585 F Net Equity total 9,969 69,159 79,128 13,813 131,411 145,224 Liabilities and Net Equity 49,234 217,146 266,380 57,938 236,143 294,081 onsolidated C

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The breakdown of profits obtained from ordinary activities classified by external clients and geographical location for the years ended As of Dec. 31, 2012 As of Dec. 31, 2011 December 31, 2012 and 2011, is as follows: Time deposits ThUS$ ThUS$ Banco BCI 7,000 - As of December 31, 2012 As of Dec. 31, 2011 Corpbanca - 9,630 Freshwater Seawater Seawater Freshwater Salmon Salmon Total Salmon Salmon Total Citibank - 1,051 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ Banco Santander - 11,556 Internal Clients Total time deposits 7,000 22,237 Chile 1,073 11,487 12,560 9,400 8,734 18,134

Total Internal Clients 1,073 11,487 12,560 9,400 8,734 18,134 As of Dec. 31, 2012 As of Dec. 31, 2011 External Clients Mutual funds ThUS$ ThUS$ North America - 33,876 33,876 - 67,574 67,574 BCI 3,663 - Asia - 49,382 49,382 - 35,914 35.914 Larraín Vial 2,843 27,880 Rest of America - 21,814 21,814 - 36,985 36,985 Citibank 544 - Europe - 4,117 4,117 - 5,057 5,057 Total mutual funds 7,050 27,880 Others ------Total External clients - 109,189 109,189 - 145,530 145,530 As of Dec. 31, 2012 As of Dec. 31, 2011 Agreements ThUS$ ThUS$ Total 1,073 120,676 121,749 9,400 154,264 163,664 Corpbanca - 173

At the end of 2012, the only client that represents an amount equal to 10% or more of the total revenue for ordinary activities is Nippon Total Agreements - 173 Suisan Kaisha, with 23% of sales for the year. Mutual fund shares are fixed income and are recorded at market value according to the value of the share at the end of each financial year. Mutual fund investments are kept by the Group until operational obligations are fulfilled. NOTE 6- CASH AND CASH EQUIVALENTS Cash and cash equivalents are cash balances kept in bank checking accounts, time deposits and other financial investments with a maturity Cash and cash equivalents reported in the cash flow statement are as follows: of less than 90 days. Also included in this item are those cash investments made by the Administration, such as overnight investments Assets As of Dec. 31, 2012 As of Dec. 31, 2011 which maturity is consistent with what is stated above, subject to the terms described in IAS 7. ThUS$ ThUS$ Cash and cash equivalents 15,527 51,480 Composition of Cash and cash equivalents as of December 31, 2012 and December 31, 2011, is as follows: Cash and cash equivalents reported in the cash flows statement 15,527 51,480 As of Dec. 31, 2012 As of Dec. 31, 2011 Cash and cash equivalents ThUS$ ThUS$ Bank Balances 1,477 1,190 NOTE 7- FINANCIAL INSTRUMENTS Time deposits 7,000 22,237 7.a) Financial instruments by category Mutual funds 7,050 27,880 Agreements - 173 Loans and accounts Assets at Fair Value through receivable profit and loss Total Total cash and cash equivalents 15,527 51,480 ThUS$ ThUS$ ThUS$ As of Dec. 31, 2012 Balances by currency comprising cash and cash equivalents as of December 31, 2012, and December 31, 2011, are as follows: Cash and cash equivalents 8,477 7,050 15,527 tatements

As of Dec. 31, 2012 As of Dec. 31, 2011 Trade and other accounts receivable 14,410 - 14,410 S Currency ThUS$ ThUS$ Accounts receivable from related entities 3,826 - 3,826 US Dollar 12,384 2,016 Total 26,713 7,050 33,763 Chilean Peso 3,143 49,464

Total 15,527 51,480 inancial F onsolidated C

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Liabilities at Fair Value Credit quality of financial assets Dec. 31, 2012 Dec. 31, 2011 through profit and loss Other financial liabilities Total ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ Cash and cash equivalents As of Dec. 31, 2012 Mutual funds and fixed-term deposits AA+fm/M1 14,050 50,290 Trade and other accounts payable - 64,481 64,481 Bank current accounts AA and higher. 1,477 1,190 Accounts payable to related entities, current - 363 363 Total 15,527 51,480 Other accounts payable, non current - 1,000 1,000 Trade and other accounts receivable Other financial liabilities, current 29,075 - 29,075 1 to 15 days 10,496 4,901 Other financial liabilities, non current 91,677 - 91,677 16 to 30 days 3,811 3,610 Total 120,752 65,844 186,596 More than 30 days 67 8,343

Loans and accounts Assets at Fair Value through Without credit rating 36 10 receivable profit and loss Total Total 14,410 16,864 THUS$ ThUS$ ThUS$ As of Dec. 31, 2011 As shown above, the Company evaluates its credit risk by applying maturity terms to its accounts receivable. Cash and cash equivalents 23,427 28,053 51,480 None of the outstanding financial assets have been renegotiated during the year. Trade and other accounts receivable 16,864 - 16,864 Accounts receivable from related entities 5,751 - 5,751 7.c) Estimation of Fair Value Total 46,042 28,053 74,095 As of December 31, 2012, the Company kept financial instruments than had to be recorded at fair value. These instruments include:

Liabilities at Fair Value • Short-term mutual fund investments (cash equivalent). through profit and loss Other Financial liabilities Total ThUS$ ThUS$ ThUS$ The Company has classified the fair value measurements by using a hierarchy that reflects the level of information used in the valuation.

As of Dec. 31, 2011 This hierarchy consists of three levels: (i) fair value based on active market quotations for a similar kind of asset or liability, (ii) fair value Trade and other accounts payable - 51,330 51,330 based on valuation techniques that use market prices or market price derivatives of similar financial instruments and (III) fair value based Accounts payable to related entities, current - 3,893 3,893 on valuation models that do not use market information. Other accounts payable, current 16,445 - 16,445 Fair value of financial instruments traded in active markets, such as investments acquired for their negotiation, are based on market prices Other financial liabilities, non current 65,725 - 65,725 quoted using the current bid price at the closing of the financial statements. Total 82,170 55,223 137,393 The following table shows the classification of financial instruments at fair value as of December 31, 2012, according to the information 7.b) Credit quality of financial assets used in their valuation: Financial Assets held by the Company can be classified into two groups: i) Commercial Loans with Clients, which in order to measure their Fair value as of Dec. degree of risk are classified by the seniority of the debt and provisions are made for non-collectible loans, and ii) financial investments made 31, 2012 Fair Value measurements using values considered as: by the Company in accordance with the criteria set out in Note 3. Level I Level II level III Assets ThUS$ ThUS$ ThUS$ ThUS$ Short-term mutual funds 7,050 7,050 - -

Short term Agreements 0 0 0 0 tatements S Total 7,050 7,050 - -

Fair value as of Dec. 31, 2011 Fair Value measurements using values considered: inancial

Level I Level II Level III F Assets THUS$ THUS$ THUS$ THUS$ Short-term mutual funds 27,880 27,880 - - Short term Agreements 173 173 - - Total 28,053 28,053 - - onsolidated C

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Additionally, as of December 31, 2012, the Company has financial instruments that are registered at fair value. In order to comply with The balance of trade and other accounts receivable by segment is as follows: the fair values disclosure requirements, the Company has valued these instruments as shown in the following table: As of Dec. 31, 2012 As of Dec. 31, 2011 As of December 31, 2012 As of December 31, 2011 ThUS$ ThUS$ Book value Fair value Book value Fair value Freshwater 13,719 7,709 ThUS$ ThUS$ ThUS$ ThUS$ Seawater 369 1,642 Cash and Cash equivalent Total 14,088 9,351 Cash on hand Bank balance 1,477 1,477 1,190 1,190 Seniority of accounts receivable is as follows: Fixed-term deposits 7,000 7,000 22,237 22,237 Trade and other accounts receivable 14,410 14,410 16,864 16,864 Up to 90 days As of Dec. 31, 2012 As of Dec. 31, 2011 Accounts receivable form related entities 3,826 3,826 5,751 5,751 ThUS$ ThUS$ Other financial liabilities 29,075 29,075 16,445 16,445 Trade accounts receivable 14,088 9,351 Other financial liabilities, non current 91,677 91,677 65,725 65,725 Total 14,088 9,351 Trade and other accounts payables, current 64,481 64,481 51,330 51,330 Accounts payable to related entities 363 363 3,893 3,893 The Company does not have trade and other accounts receivable individually impaired that have been renegotiated. Other accounts payables, non current 1,000 1,000 - - The Company makes provisions when there is evidence of impairment of trade accounts payables. The criteria used to determine if there is objective evidence of impairment loss are the maturity of the portfolio, impairment facts (default) The registered value of accounts receivable and accounts payable is assumed to be approximated to their fair value due to their short-term and specific market signs. nature. Cash on hand, bank balances, time deposits and other non-current accounts payable, their fair value is approximated to their book Impairment value. Maturity % Accounts receivable– over 1 year 100 NOTE 8 - TRADE AND OTHER ACCOUNTS RECEIVABLE Judicial and pre-judicial collection Assets 100 The following is the breakdown of trade and other accounts receivable: The movement of the provision for impairment losses of Chilean trade accounts receivable between January 1, 2012 and December 31, As of Dec. 312012 As of Dec. 31, 2011 2012, is as follows: ThUS$ ThUS$ Trade accounts receivable National 3,662 1,697 ThUS$ As of Jan. 1, 2012 (78) Trade accounts receivable Foreign 10,680 7,732 Penalties - Provision Non- collectible (254) (78) Recovery if non-collectibles - Trade accounts receivable– Net 14,088 9,351 Increase in provisions (176) Other accounts receivable 322 7,127 Balance as of Dec. 31, 2012 (254) Others - 386 Total 14,410 16,864 After exhausting all prejudicial and judicial collection efforts, the assets are written-off against the corresponding provision.

Fair value of trade and other accounts receivable does not significantly differ from their book value. The Company only uses this provision method and not the direct write-off for better control. tatements

Balances by currency of non-current trade and other accounts receivable as of December 31, 2012 and December 31, 2011 are as follows: Historical and current renegotiations have little relevance and the policy is to analyze them on a case to case basis and then classify them S according to the existence of risk and determining if any reclassification is needed for the accounts receivable. If reclassification is needed, As of Dec. 31, 2012 As of Dec. 31, 2011 Currency ThUS$ ThUS$ a provision is created for the expired and to be expired. US Dollar 12,158 14,276 The Holding Company and subsidiaries believe they are not exposed to a high risk of liquidity of these financial assets since the credit Chilean peso 2,252 2,588 quality is protected by high diversification of the Company’s client portfolio, which are economically and geographically dispersed and inancial F Total 14,410 16,864 come from countries with low sovereign risk. There are no material guarantees for credit operations conducted with clients with a stable business relationship and excellent payment behavior or early paying clients. However, there are contractual agreements to protect specific businesses. onsolidated C

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The maximum exposure to credit risk to the date of presentation of this information is the fair value of each of the above mentioned b) Accounts payable to related entities categories of accounts receivable. Accounts payable to related entities as of December 31, 2012, and December 31, 2011, respectively, are as follows:

As of December 31 2012 As of December 31, 2011 Current RUT Relationship Country of Currency As of Dec. 31, As of Dec. 31 origin 2012 ThUS$ 2011 ThUS$ Gross exposure Gross Exposure Net Concentrated Gross exposure Gross Exposure Net Concentrated Company ThUS$ Impaired Risk Exposure ThUS$ Impaired Risk Exposure ThUS$ ThUS$ ThUS$ ThUS$ Inversiones Australis Ltda. (Ex Australis S.A.) 96.631.730-2 Common shareholders Chile Pesos 363 368 True Salmon Pacific Holding CO., LLC Foreign Joint venture USA US Dollars - 3,525 Trade accounts 14,369 (254) 14,115 9,429 (78) 9,351 Total 363 3,893 Other accounts receivable 295 - 295 7,513 - 7,513 Total 14,664 (254) 14,410 16,942 (78) 16,864 c) Transactions with related entities and effects on net income NOTE 9 - ACCOUNTS RECEIVABLE FROM/PAYABLE TO RELATED ENTITIES These are the operations and their effects as informed on income statements of years ended December 31, 2012 and December 31, 2011.

Related entities include the following entities and individuals As of Dec. 31, 2012 As of Dec. 31, 2011 Effect on Effect on a) Shareholders who may exercise control. Type of Amount income Amount income b) Subsidiaries and members of subsidiaries. Company RUT Relationship Country Type of currency Income ThUS$ ThUS$ ThUS$ ThUS$ c) Parties with an interest in an entity that gives them significant influence over it. True Nature Seafoods * Foreign Joint Venture USA Terminated US Dollar 30,706 (6,091) 2,949 298 product sale d) Parties with joint control over the entity. South Pacific Specialities Inc. * Foreign Joint Venture USA Terminated US Dollar 2,952 (827) 543 - e) Associates. product sale f) Interests in joint ventures. Asesorías e Inversiones 77.029.880-6 Shareholder Chile Service Pesos 49 (49) 50 (50) g) Key executives of the entity or its parent company. Benjamín S.A. agreement h) Close relatives of the individuals described above. Asesorías e Inversiones 77.029.880-6 Shareholder Chile Paid Remittances Pesos - - 884 - i) An entity controlled by any of the individuals described above or jointly controlled or over which there is significant influence, where a Benjamín S.A. significant portion of the voting power lies directly or indirectly in any individual described above. (*) As of December 9, 2011, Australis Seafoods through its subsidiary Comercilizadora Australis SpA, acquired 50% of the capital of True Salmon j) Accounts receivable from related entities. Pacific Holding Co., owner of 100% of the social rights or shares of True Nature Seafoods Inc. and South Pacific Specialities LLC, companies through In general, transactions with related entities have immediate receipt or payment and are not subject to special conditions. These transactions which it develops its business of marketing fish and seafood products in the United States of America and Canada, companies to which Australis Mar are in accordance with the provisions of Articles 146 and following of Law 18,046, on Corporations. sells part of its production

Transfers of short-term funds to and from the Holding Company or between related entities, other than receipt or payment of services are Australis Seafoods S.A. and subsidiaries, have the policy to inform all transactions with related entities that exceed ThUS$10 carried out structured in the form commercial current account agreements. during the year, except dividends paid and capital contributions received, which are not considered to be transactions. a) Accounts receivable from related entities d) Remunerations and fees paid to the Board of Directors and the Audit Committee and Remunerations of key Accounts receivable from related entities as of December 31, 2012 and December 31, 2011, respectively, are as follows: Executives The amount reflected in expenditures for payments to Directors as of 31 December 2012, was ThUS$339.. Current RUT Relationship Country of Currency As of Dec. 31, As of Dec. 31, Origin 2012 ThUS$ 2011 ThUS$ Company Also, the total gross remuneration received by Australis Seafoods S.A. and subsidiaries’ executives was ThUS$3,526.- as of December 31, Asesorías e Inversiones Benjamín S.A. 79.744.690-1 Shareholder Chile Pesos 11 9 2012. (ThUS$2,325 as of December 2011). tatements

True Nature Seafoods Foreign Joint Venture USA US Dollars 3,198 5,108 Moreover, it is noteworthy that the above mentioned amounts include incentive systems that consist of an annual bonus payable to key S South Pacific Specialities Foreign Joint Venture USA US Dollars 610 593 executives and other positions that -according to the discretion of the Company- are eligible to participate and are provisioned year when Piscicultura Los Navegantes 96.862.150-5 Common shareholder Chile Pesos 7 41 the associated goals are met.

Total 3,826 5,751 This compensation system seeks to motivate, recognize and obtain loyalty from executives through a formal scheme that rewards good individual performance as well as teamwork. inancial F onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

Key executives and managers are those individuals that have the authority and responsibility to plan, direct and control the activities of Formula for calculating inventory cost. the company, directly or indirectly, including any member of the Board of Directors (whether an executive or otherwise) or equivalent Inventories of finished products are valued using the weighted average cost method, that is, the cost of each unit of product is determined governing body of the Company. based on the weighted average of the recorded cost at the beginning of the financial period, and the cost of the goods acquired or produced during the period. e) Issuance of shares. Pursuant to the powers granted to the Board of Directors by the Extraordinary Shareholders Meeting held on March 4, 2011, the Board Inventories of raw materials, containers and other materials are valued at weighted average cost. at the meeting held on March 8, 2011, offered to the directors of the Company 3,000,000 shares constituting a capital increase. Of these Information on finished products. individuals, only Mr. Rodrigo Arriagada Astrosa accepted the offer, for 2 million shares; and Mr. Federico Rodríguez Marty, accepted the At closing of this financial statement the Company made a provision for the impairment of finished products for ThUS$749. During the offer for 1 million shares. These shares were subscribed through private contracts dated March 14, 2011, and to this date they are still financial year ending December 31, 2012, and as of December 31, 2011, no inventories have been pledged as security. pending payment. The price, which is determinable: (i) cannot be less than $20.224 per share, (ii) will be equal to the price at which all Inventories recognized in the sales cost at closing of each financial period are summarized as follows: 180,000,000 shares placed among third parties on the Santiago Stock Exchange on December 9, 2011, that is, the amount of $185 per share, (iii) must be paid within a maximum period of 3 years, as from March 4, 2011, and (iv) in the event that within that 3 year period all Accumulated Accumulated as of Dec. 31, 2012 as of Dec. 31, 2011 or part of such shares are not placed in the stock market, the subscription price of such shares will be of $20.224 per share. Inventory/Cost of Sale ThUS$ ThUS$ Cost of Sales 156,908 113,315 NOTE 10- INVENTORIES Total 156,908 113,315 Inventory composition at the end of each financial year is as follows:

As of Dec. 31, 2012 As of Dec. 31, 2011 Finished Product ThUS$ ThUS$ NOTE 11-BIOLOGICAL ASSETS Final product 19,102 8,006 The biological assets of Australis Seafoods S.A. and subsidiaries consist of fish in the water, for subsidiary Australis Mar S.A. and broodstock, Provision for net realization value (6,793) - eggs, fry and smolts for subsidiary Landcatch Chile S.A. Provision for impaired products (749) - The Company does not have any restrictions regarding its biological assets nor have they been used to secure its financial obligations. Supplies - 350 The biological assets that the Administration estimates will be harvested within one year are classified as current biological assets. Fish food 2,727 2,698 Current As of Dec. 31, 2012 As of Dec. 31, 2011 Packaging materials 273 172 ThUS$ ThUS$ Medicine and additives 73 280 Freshwater salmon 10,111 16,155 Others 216 - Seawater salmon 56,106 62,642 Total 14,849 11,506 Total 66,217 78,797

As of December 31, 2012, the Company has recognized a provision for the net realization value of finished product of ThUS$6,793, Non- current As of Dec. 31, 2012 As of Dec. 31, 2011 originated in the decrease of sale prices observed at closing of the financial statement. This amount is recorded in item (Debit) Credit to Fair ThUS$ ThUS$ Value Results for growth of Biological Assets, net of the effects registered by this item as detailed in Note 11 of Biological Assets. Freshwater salmon 2,982 4,375 Inventory policies Seawater salmon 21,595 24,485 The Group’s inventories are valued at cost or net realizable value, whichever is lower. Total 24,577 28,860

Inventory measurement Policy Total 90,794 107,657

The Group inventories are valued according to the following: tatements

a) The production cost of manufactured inventories includes costs directly related to the units produced, such as labor, variables and fixed S costs included to convert materials into finished products. The production cost of raw and frozen salmon is determined based on the last fair value of the biological asset at point of sale, plus direct and indirect productions costs.

b) The cost of purchased inventory, the cost of acquisition will include el purchase price, import duties, transportation, storage and other inancial

costs attributable to the acquisition of the purchase and materials. F onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

The movement of biological assets as of December 31, 2012, and December 31, 2011 is as follows: b) Seawater

01/01/2012 01/01/2011 Seawater As of Dec. 31, 2012 As of Dec. 31, 2011 31/12/2012 31/12/2011 Units Units ThUS$ ThUS$ Weight gaining fish 11,683,795 13,821,629 Initial Biological assets 107,657 73,994 Total seawater 11,683,795 13,821,629 Increase for weight gaining and production 153,345 140,808 Decrease for sales and harvests (141,486) (106,351) As of Dec. 31, 2012 As of Dec. 31, 2011 Fair value adjustment for the year, increase/decrease of Fair Value* (5,705) 23,420 Seawater tons 22,679 20,444 Decrease in Fair Value by harvests** (6,767) (23,479) Decrease in Fair Value for harvests kept as finished product at closing of the year*** - (454) Biological assets impairment (7,145) - Biological Assets Policies Productive Plan adjustment (9,105) (281) Biological assets are valued at fair value less estimated costs at points of sale, in accordance with the definitions contained in IAS 41, and in Balance at closing 90,794 107,657 accordance with the provisions of Note 2.7.

* Amounts recognized for growth of biological assets in the income statement, effect that is recognized separately in the income statement by function. At closing of the financial statements, the effect of the fish natural growth in the water, expressed at fair value less estimated costs at points ** Fair value adjustment transferred to finished product because of harvests of the year. At end of the financial year, this amount was debited from the income of sale, is recognized according to a valuation performed based on market prices adjusted by quality and size. The higher or lower value statement due to the sale of finished product. This effect is shown separately in the income statement by function. result is recorded in the income statement as (Debit) Credit to Fair Value Results for growth of Biological Assets for the financial year. In *** Fair value adjustment transferred to the finished product that remain inventory at the end of the year. addition, the higher cost of the exploited and sold part resulting from this revaluation is also recorded as (Debit) Credit to Fair Value Results of Biological Assets harvested and sold. According to the latter, the full net effect of the biological assets’ valuation (including impairments As of December 31, 2012, the Company recognized an impairment of its biological assets of ThUS$7,145, recorded in the income statement and provisions) for the year ended December 31, 2012 was ThUS$22,054 (ThUS$59 in December 2011) as item (Debit) Credit to Fair Value Results for growth of Biological Assets, net of the increase in fair value of biological assets for the financial year that was ThUS$5,705 (loss). Additionally, and as mentioned in Note 10, the effect of the adjustment to net realizable value Operating risks of inventories of finished goods has been included under the item (Debit) Credit to Fair Value Results for growth of Biological Assets for Since salmon production is a biological asset it is potentially affected by a number of biological risks. To this regard, the following risks can the period for ThUS$6,793 (loss). be mentioned:

The adjustment of the production plan for ThUS$6,765 consists of reducing the original smolt-planting plan for 2012 from 17.5 million a) Diseases: Although disease is currently controlled through vaccines, antibiotics, good management practices and through the units to 12.4 million units. This, considering that the sustained fall of international salmon prices caused largely by the strong increase production of high quality smolts, it is not possible to rule out the development of new diseases or pests affecting production. in Chilean production and the pressure it has placed on the markets. Consistent with the foregoing, subsidiary Landcatch decreased the b) Failure to comply with applicable legislation and, in particular, failure to comply with resting breaks and district provisions, could number of smolts to be produced, which had an effect on the results of ThUS$2,340. These effects are recognized as part of Other expenses, result in sanctions applicable by the authority that may even lead to the revocation of the concessions. by function in the income statement. c) Predators: The presence of natural predators of salmon such as sea lions, may involve a loss of biomass and even the destruction The quantitative summary of biological assets as of December 31, 2012 and December 31, 2011, is as follows: of cages. The industry has implemented a series of preventive measures to help mitigate the adverse effects caused by this kind of a) Freshwater predators. d) Risk of nature: Salmon growth depends, among other things, on climatic and oceanographic conditions, such as changes in the Freshwater As of Dec. 31, 2012 As of Dec. 31, 2011 Units Units brightness of the environment or the temperature of water, which can have negative impacts on fish growth and food consumption. Eggs - 1,374,983 e) Cost of food: Food is the most significant direct cost in the production of salmon and trout in both the freshwater business and the tatements Broodstock 212,206 455,462 seawater weight gaining business. Variations in the food prices are caused by variables beyond ASF Group, such as the price or cost of S Fry 13,228,772 20,762,491 fishmeal that, in turn, depends on the costs of the extractive fishing industry. Smolts 1,657,275 4,287,868 Total freshwater 15,098,253 26,880,804 inancial F onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

NOTE 12 – INCOME TAXES This value includes the goodwill generated at the time of acquisition, which does not have impairment as of December 31, 2012 and 2011,: Income tax receivable – current, are as detailed below: As of Dec. 31, 2012 As of Dec. 31, 2011 ThUS$ ThUS$ Income Tax receivable As of Dec. 31, 2012 As of Dec. 31, 2011 True Salmon Pacific Holding Co. 6,523 6,523 ThUS$ ThUS$ TOTAL 6,523 6,523 VAT Credit 4,986 3,997 Fixed assets 4% credit - 38 The results accrued in joint ventures are as follows:

Estimated monthly payments for absorbed profits 6,423 9 As of Dec. 31, 2012 As of Dec. 31, 2011 Provisional Monthly Payments 2,082 3,724 ThUS$ ThUS$ SENCE credit credit (National Training and Employment Service) 2 45 True Salmon Pacific Holding Co. 508 87 Provision for Income tax - (5,827) TOTAL 508 87 Austral Law* - 5,789 Investments movements in joint ventures as of December 31, 2012, and December 31, 2011, are as follows: Other Tax credit - 170 Total Tax receivable 13,493 7,945 As of Dec. 31, 2012 As of Dec. 31, 2011 ThUS$ ThUS$ As of December 31, 2012, the Company registers Pagos Provisionales por Utilidades Absorbidas (Estimated monthly payments for absorbed Initial balance 7,612 - profits or PPUA) for ThUS$6,423, considering the current situation of tax loss and undistributed tax profits from previous years. Investments in joint ventures - 7,525 As of December 31, 2011 the Provision for First Class Income Tax of ThUS$5,827, does not constitute a cash flow for the Company because Interest in joint ventures profit 508 87 of to the credit generated for the enforcement of the Austral Law, it will be compensated in the following payment date. TOTAL 8,120 7,612

NOTE 13- OTHER NON-CURRENT ASSETS The summarized financial information of True Salmon Pacific Holding Co. as of 31 December 2012, and 2011, is as follows:

As of Dec. 31, 2012 As of Dec. 31, 2011 As of Dec. 31, 2012 As of Dec. 31, 2011 ThUS$ ThUS$ Assets, current 23,343 17,529 Austral Law* 7,857 7,379 Assets, non-current 819 457 Other 156 156 Total assets of entity with joint control 24,162 17,986 Total 8,013 7,535 Liabilities, current 20,960 15,800 * Tax credit generated regarding assets incorporated to an investment project developed in the XI and XII Regions and in the Palena Province. Until Liabilities, non current - - December 31, 2011, this credit is attributable to the First Category Income Tax, so it is considered an asset. The Company can use this credit until Equity 3,202 2,186 December 31, 2031. Total liabilities and equity of entity with joint control 24,162 17,986 Income, current 156,092 * 12,774 NOTE 14- INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD Expenses, current (155.077) * (12,599) On December 9, 2011, Australis Seafoods S.A. through subsidiary Comercializadora Australis SpA, acquired 50% of True Salmon Pacific Net Profit/(Loss) 1,015 * 175 Holding Co., which in turn, owns 100% of social rights or shares of True Nature Seafoods Inc. and South Pacific Specialities LLC, companies (*) For the period between January 1 and December 31, 2011. through which it markets fish and seafood products in the United States and Canada. tatements

The valuation of the investment in the joint venture as of 31 December 2012 is as follows: S

As of Dec. 31, 2012 As of Dec. 31, 2011 ThUS$ ThUS$ True Salmon Pacific Holding Co. 8,120 7,612 inancial TOTAL 8,120 7,612 F onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

NOTE 15- INTANGIBLE ASSETS OTHER TAN GOODWILL The movement of intangible assets as of December 31, 2011, is as follows: A breakdown of the main types of intangible assets that were not generated internally is as follows: Useful life Useful life Indefinite Finite Total Useful As of As of ThUS$ ThUS$ ThUS$ Life Dec. 31, 2012 Dec. 31, 2012 ThUS$ ThUS$ Balance as of January 1, 2011 4,904 5,518 10,422 Aquaculture concessions Indefinite 5,644 3,945 Accumulated amortization and impairment - (32) (32) Aquaculture concessions Finite 7,756 7,518 Additions 2,005 2,061 4,066 Water rights Indefinite 2,748 2,735 Balance as of December 31, 2011 6,909 7,547 14,456 Trademarks Finite 105 61

Computer software licenses Finite 104 - The breakdown of the aquaculture concessions and water rights as of December 31, 2012, is as follows: Water rights Finite 838 - a) Aquaculture concessions – Seawater Other Indefinite 310 197 • Own concessions Total 17,505 14,456 No. Name Type Region Area (Hectares) Being used at closing 2012 a) Aquaculture concessions and water rights 1 Humos 3 Salmonids XI 4.5 Yes Aquaculture concessions acquired from third parties are recognized at historical cost. 2 Burr 1 Salmonids XI 3.8 - The useful life (term) of such concessions is mostly indefinite, since they have no expiration date or a predictable useful life, therefore they 3 Rivero 1 Salmonids XI 3.9 Yes are not amortized. Concessions obtained under the new Fishery Law have a 25-year term, which is renewable according the compliance 4 Elefante 1 Salmonids XI 4.0 - of certain health and environmental conditions, so they are amortized based on their useful life. 5 Rivero 2 Salmonids XI 8.1 - Water rights are exploitation rights associated with technical projects of piscicultures that have an indefinite nature and, therefore, are not 6 Salmonids XI 15.0 Yes amortized. Water rights acquired from third parties are recognized at historical cost. Pulluche 1 7 I Rojas 2 Salmonids XI 4.0 Yes Australis Seafoods through its subsidiaries has applications for concessions that are currently in progress are currently in different stages of the legal process and these require payments associated with the compliance of several procedures. These contingent liabilities according 8 Rivero 4 Salmonids XI 5.9 Yes to IAS 38 are not recorded, but in order to comply with the disclosure requirements, it is estimated that for 2013 they are likely to amount 9 Salas 5 Salmonids XI 3.0 - up to UF37,500 and reach -during the following periods- a total of UF80,000. When the conditions are met to make this liability certain, 10 Humos 2 Salmonids XI 4.5 Yes it is recorded against an increase in the value of the concessions. 11 Humos 1 Salmonids XI 4.5 Yes b) Intangible assets subject to guarantees or restrictions 12 Humos 4 Salmonids XI 4.5 - At closing date of these financial statements, the Company and subsidiaries do not have any guarantees for purchases of intangibles. 13 Humos 5 Salmonids XI 4.5 Yes The movement of intangible assets as of December 31, 2012, is as follows: 14 Matilde 1 Salmonids XI 3.0 Yes Useful life Indefinite Useful life Finite Total 15 Salmonids XI 4.5 - ThUS$ ThUS$ ThUS$ Humos 6 16 Italia Salmonids XI 2.0 -

Balance as of January 1, 2012 6,909 7,547 14,456 tatements 17 Humos 7 Salmonids XI 1.0 - Accumulated amortization and impairment (7) (53) (60) S 18 Rivero 3 Salmonids XI 2.0 - Additions 1,490 1,619 3,109 Balance as of December 31, 2012 8,392 9,113 17,505 19 Luz 1 Salmonids XI 2.0 - 20 Matilde 2 Salmonids XI 3.0 - inancial

21 Patranca 1 Salmonids XI 6.0 - F 22 Luz 2 Salmonids XI 2.0 - 23 Salas 1 Salmonids XI 0.5 - 24 Pulluche 2 Salmonids XI 2.0 - 25 Salas 3 Salmonids XI 0.5 - onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

• Own concessions – leased to third parties 26 Humos 8 Salmonids XI 2.0 - 27 I Rojas Salmonids XI 6.0 - No. Name Type Region Area (Hectares) Being used at closing 2012 28 Salas 2 Salmonids XI 1.5 - 1 Puluqui 1 Salmonids X 11.7 - 29 Salas 4 Salmonids XI 1.2 - • Third party concessions – leased from third parties 30 Fitz Roy Salmonids XI 1.5 - No. Name Type Region Area (Hectares) Being used at closing 31 Pulluche 3 Salmonids XI 6.0 Yes 2012 32 Fitz Roy Salmonids XI 1.0 - 1 Melchor 4 Salmonids XI 6 Yes 2 Traiguén 1 Salmonids XI 8 Yes 33 Salas 7 Salmonids XI 1.5 - 34 Luz 4 Salmonids XI 2.0 - b) Water rights– Freshwater 35 Dring 1 Salmonids XI 2.0 - • Water rights - owned by the Company

36 Luz 3 Salmonids XI 2.0 Yes No. Name Type Region Being used at closing 2012 37 Matilde 3 Salmonids XI 2.0 - 1 Río Negro 1 Freshwater X - 38 Melchor 1 Salmonids XI 5.8 - 2 Río Negro 2 Freshwater X - 3 Río Negro 3 Freshwater X - 39 Melchor2 Salmonids XI 1.5 - 4 Estero Caren 1 Freshwater IX - 40 Isquiliac 3 Salmonids XI 3.0 - 5 Estero Caren 2 Freshwater IX - 41 Salmonids XI 1.5 - Rivero 5 6 Est. Allipén Freshwater IX - 42 Isla Quemada 2 Salmonids XI 1.5 - 7 Curarrehue Freshwater IX - 43 Salmonids XI 2.0 - MITAHUES 2 • Water rights – subject to financial lease 44 MITAHUES 3 Salmonids XI 7.9 - No. Name Type Region Being used at closing 2012 45 RABUDOS Salmonids XI 6.0 - 1 Río Cululí Freshwater X Yes 46 Guar Salmonids X 3.0 - 2 Río Ignao Freshwater XIV Yes 47 Rulo Salmonids X 5.4 - 3 Pozo Ignao Freshwater XIV Yes 48 Caicaen Salmonids X 1.0 - 4 Río Caliboro Freshwater VIII - 49 Riveros 6 Salmonids XI 6.0 Yes 5 Vertiente SN Freshwater IX Yes 6 Rio Alllipen Freshwater IX - 50 Salas 6 Salmonids XI 2.0 - 7 Río Curacalco Freshwater IX Yes 51 Isla Medio 1 Salmonids XI 1.5 - 8 Canal del Laja Freshwater VIII Yes 52 Elena Salmonids XI 6.0 Yes • Water rights – subject to operational lease 53 Luz 5 Salmonids XI 2.0 - tatements No. Name Type Region Being used at closing 2012 54 Casma Salmonids XI 3.0 - S 1 Estero del Diablo Freshwater IX Yes 55 Veneria Salmonids XI 3.0 - 2 Estero Matanza Freshwater IX Yes 56 Salmonids XI 6.0 - Herrera 3 Estero Sen Sen Freshwater IX Yes

57 Fitz Roy 3 Salmonids XI 6.0 - inancial F 58 Canalad Salmonids XI 10.80 - 59 Yalac Salmonids XI 4.00 - 60 Victoria Salmonids XI 6.00 - onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

NOTE 16 - PROPERTY, PLANT AND EQUIPMENT As of December 31, 2011, the breakdown of property, plant and equipment is as follows:

Detail of the different categories of property, plants and equipments and their movements as of December 31, 2012, and December 31, Gross Value Accumulated Net value ThUS$ Depreciation ThUS$ 2011 is as follows: ThUS$

Net Net Total Construction and works in progress 9,274 (1,015) 8,259 Information Property, Land 4,952 - 4,952 Net construc- Net Plant and Technologies Net fixtures Plant and tions Land Net buildings Equipment Equipment and fittings Equipment Buildings 981 (10) 971 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ Plant and equipment 54,778 (10,643) 44,135 Initial Balance 2,672 588 - 25,292 154 1,958 30,664 Information technology equipment 206 (45) 161 Fixtures and fittings 3,071 (1,176) 1,895 Additions 5,935 4,364 981 22,178 45 465 33,968 Total property, equipment 73,262 (12,889) 60,373 Additions to construction - - - 881 - - 881 Disposals - - - - - (122) (122) As of December 31, 2012, the Company recognized a depreciation of ThUS$3,725 (ThUS$2,771 in 2011) in the income statement for the Depreciation (348) - (10) (4,216) (38) (406) (5,018) financial year. Net amount as of December 31, 2011 8,259 4,952 971 44,135 161 1,895 60,373 a) Valuation and updates The Administration has chosen the cost-model accounting policy that applies to all items containing some kind of property, plant and Additions 1,402 3,895 - 14,164 34 2,311 21,806 equipment. Additions to constructions in progress 863 - - - - - 863 New property, plant and equipment are recognized at cost of acquisition. Other increases (decreases) (292) (167) - 311 (9) (13) (170) Acquisitions agreed in a currency other than the functional currency are translated at the exchange rate valid as of the date of the acquisition. Disposals (109) - - (329) (3) - (441) For the valuation of the main fixed assets and relevant land acquired before the date of transition to IFRS the fair value for subsidiary Depreciation (530) - (114) (5,939) (42) (466) (7,091) Landcatch Chile S.A. was determined based on valuations performed by expert, independent and external professionals. For other fixed Net amount as of December 31, 2012 9,593 8,680 857 52,342 141 3,727 75,340 assets, especially those associated with subsidiary Australis Mar S.A., the historical cost model was used.

Daily maintenance and common repairs costs are recognized as net income(loss), but the replacement of important parts or pieces and As of December 31, 2012, the breakdown of property, plant and equipment is as follows: strategic spare parts that considered improvements are capitalized and depreciated over the remaining useful life of the assets based on a

Gross Value Accumulated Depreciation Net value component’s approach. ThUS$ ThUS$ ThUS$ Gains or losses from sales of property, plant and equipment are calculated by comparing the proceeds obtained from the sale of the asset Construction and works in progress 10,702 (1,109) 9,593 and the book value of the asset and are included in the income statement. Land 8.680 - 8,680 Buildings 981 (124) 857 b) Depreciation Method Plant and equipment 66,880 (14,538) 52,342 Depreciation of assets is calculated in a straight line over the respective useful life. This useful life is determined based on the expected natural deterioration, technical or commercial obsolescence arising from changes and/or improvements in production and changes in the Information technology equipment 225 (84) 141 market demand of products obtained using these assets. Fixtures and fittings 5,665 (1,938) 3,727 Total property, plants and equipment 93,133 (17,793) 75,340 c) Estimated useful life or depreciation rates The estimated useful life by type of asset is as follows: tatements S Freshwater Seawater useful life useful life Average Average Buildings 13 - inancial Plans and equipment 7 10 F Information technology equipment 3 - Fixtures and fittings 4 10 onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

The residual value and useful life of assets are reviewed and adjusted, if necessary, at each closing of the financial statements. On November 21, 2011 subsidiary Landcatch Chile S.A. executed a leaseback agreement with Banco Bilbao Vizcaya Argentaria, Chile, over the Ketrún Rayén pisciculture located in the commune of Los Ángeles, Region of Bío Bío. The asset was transferred for ThUS$5,788, with d) Property, plant and equipment subject to guarantees or restrictions a term of 8 years and a 6-month grace period, and with an interest rate of 3.94% per annum. (This operation did not generate significant Guarantees associated with property, plant and equipment are detailed in Note 30. differences between the book value of the asset and the sale price paid by Bank). As of December 31, 2012, the Company has no legal or contractual obligation to dismantle, remove or rehabilitate sites where it performs On November 3, 2011, Australis Seafoods S.A. executed a leasing agreement with Banco Bice for ThUS$981, for a term of 8 years and with it operations therefore, they do not include costs associated with such requirements. an interest rate of 4.7%. The property acquired through this operation is the corporate office of the Company. e) Insurance Additionally, subsidiary Landcatch Chile S.A. has Cululi pisciculture under a financial leasing since 2008. The Group has insurance policies to cover the risks of personal property, equipment, plant and machinery. Australis Seafoods S.A. and subsidiaries consider that coverage of these policies is appropriate for the risks inherent to its operation. The value of the minimum lease payments related to this financial lease agreement is set forth in Note 18.b)

The insurance policies maintained by Australis Seafoods S.A. and subsidiaries are the following: g) Fixed Assets fully depreciated or obsolete As of December 31, 2012, the Company does not have fixed assets that are temporarily out of service or completely depreciated, other than Type of asset Risks Covered the assets that need to have resting breaks required by health regulations. Equipment and installations Basic coverage: risks of nature. Additional coverage: theft, collision, fire. NOTE 17- INCOME TAXES and DEFERRED TAXES f) Financial leases Deferred taxes are the amounts of income tax that Australis Seafoods S.A. and subsidiaries will have to pay (liabilities) or recover (assets) in The breakdown of the classification of assets acquired under financial leases is as follows: the future years, related to temporary differences generated between the tax base and the accounting value of certain assets and liabilities

Property, plant and equipment subject to financial leasing, Net As of Dec. 31, 2012 As of Dec. 31, 2011 The main deferred tax asset is the tax losses of the parent Company and subsidiaries, to be recovered in future years. The main deferred ThUS$ ThUS$ tax liability payable in the future is the temporary differences generated by costs of manufacture, revaluation of biological assets and the Constructions subject to financial leasing 4,516 5,036 revaluation of property, plant and equipment as of the date of transition to IFRS and the application, for the tax purposes, of accelerated Land subject to financial leasing 2,044 2,280 depreciation. Buildings subject to financial leasing 857 971 A breakdown of the assets and deferred tax liabilities are as follows: Plant and equipment subject to financial leasing 7,592 7,861 As of Dec. 31, 2012 As of Dec. 31, 2011 TOTAL 15,009 16,148 Deferred Deferred Deferred Deferred tax asset tax liability tax asset tax liability Water rights subject to financial leasing As of Dec. 31, 2012 As of Dec. 31, 2011 ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ Indirect costs activated in stock - 8,219 - 7,049 Water rights subject to financial leasing * 2,071 1,604 Valuation of Biological assets 1,373 - - 1,121 TOTAL 2,071 1,604 Prepaid income - - 278 - * Included in item Intangible assets, other than goodwill. Concessions - 206 - 48 Tax Losses 7,145 - 2,282 - On May 11, 2012, subsidiary Landcatch Chile S.A. executed with Banco Santander-Chile a leaseback agreement regarding the Curacalco Provisions 80 - 425 - pisciculture located in the Araucanía Region, for a total value of ThUS$3,231, a term of 7 years and an interest rate of 4.95% per annum. Employee Provision 131 - 637 - Curacalco pisciculture had a book value of ThUS$2,184 when it was transferred to Banco Santander Chile for an amount of ThUS$3,231, Non-collectible accounts receivable provision 50 - 2 -

and then it was leased back for this same amount. The transaction generated a differential of ThUS$1,047 that- due to the nature of Intangible - 7 - 440 tatements S the transaction- is part of asset and the amount is included in the leased fixed assets and is amortized according to the useful life of the Property, plant and equipment 511 123 - 119 associated leased fixed asset. Biological impairment provision 1,429 - - - On June 30, 2011, subsidiary Landcatch Chile S.A. executed two leaseback agreements with Banco Santander-Chile regarding the amount Stock 1,509 - - 100

of ThUS$8,681, for a term of 8 years with 1-year grace period, and with an interest rate of 4.62% per annum. The transaction considered Other 309 30 376 - inancial

the following piscicultures: Subtotal 12,537 8,585 4,000 8,877 F a) Ignao pisciculture, located in the Region of Los Ríos, Municipality of Lago Ranco. Deferred Tax, net (8,585) (8,585) (1,524) (1,524) b) Vertientes pisciculture, located in the region of Araucanía, Cunco. TOTAL 3,952 - 2,476 7,353 Ignao and Vertientes piscicultures had a total book value of ThUS$10,150 when they were transferred to Banco Santander for ThUS$8,681 and then they were leased back in this same amount. This generated a differential of ThUS$1,469. that due to the nature of the transaction-

is part of the asset and, thus, the amount is included in the leased fixed assets and is amortized during the term of the leasing. onsolidated C

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No deferred taxes have been recognized for temporary differences between the tax value and the accounting value generated by investments The expense for income tax has the following composition: in related companies. Therefore, no deferred tax is recognized for Conversion Adjustments and Associated Adjustments recorded directly Accumulated Accumulated in Net Equity. As of Dec. 31, 2012 As of Dec. 31, 2011 ThUS$ ThUS$ Regarding the statutory limitation of tax losses likely to be attributable to future income, those generated by companies incorporated in Current tax expense - (5,827) Chile have no limitations. Deferred tax effect 8,829 (853) Movement of deferred tax assets are as follows: Provisional payment for absorbed profits 6,423 -

As of Dec. 31, 2012 As of Dec. 31, 2011 Others (146) (16) ThUS$ ThUS$ Total 15,106 (6,696) Initial balance 4,000 1,593 Stock 1,509 (101) The following is a detailed reconciliation of the income tax expense, using the statutory rate with the tax expense using the effective rate:

Valuation of Biological assets 1,373 - Accumulated as of DEC. 31, 2012 Accumulated as of DEC. 31, 2011 ThUS$ Property, plant and equipment 511 (193) ThUS$ Prepaid income (278) 278 Income tax expenditure using statutory rate 16,240 (6,825) Tax losses 4,863 1,788 Tax effect of rates in other jurisdictions - - Provisions 626 767 Other increases (decreases) of legal tax (1,134) 129 Intangible - (211) Total 15,106 (6,696) Other (67) 79 Final balance 12,537 4,000 NOTA 18 - OTHER FINANCIAL LIABILITIES

Movements of deferred tax liabilities are as follows: As of December 31, 2012, Australis Seafoods S.A. and subsidiaries have financial loans. These loans accrue interest at an effective rate, which does not vary significantly from its nominal rate. As of Dec. 31, 2012 As of Dec. 31, 2011 ThUS$ ThUS$ Interest bearing loans-Current As of Dec. 31, 2012 As of Dec. 31, 2011 Initial balance 8,877 5,617 ThUS$ ThUS$ Production Costs 1,170 3,209 Bank loans 26,930 15,307 Stock (100) (92) Financial leases 2,145 1,138 Intangible (433) 440 Total other financial liabilities with expiration before 12 months 29,075 16,445 Biological assets (1,121) (132) Concessions 158 1 Interest bearing loans- Non current As of Dec. 31, 2012 As of Dec. 31, 2011 ThUS$ ThUS$ Property, plant and equipment 4 (96) Bank loans 75,459 51,041 Other 30 (70) Financial leases 16,218 14,684 Final balance 8,585 8,877 Total other financial liabilities with expiration before 12 months 91,677 65,725 On 27 September 2012, Law No. 824, on Income Tax was amended regarding the applicable rates of the First Category Tax, effective as of 2012, and changed from a transitory rate of 18.5% to a permanent rate of 20%. Due to the latter, the Company decided to base the deferred tatements S tax balances of 2012 on the rate that shall be effective when the temporary differences are reversed (20%). inancial F onsolidated C

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Additional information on financial liabilities a) Breakdown of bank loans held by Australis Seafoods S.A. and subsidiaries, as of December 31, 2012 and December 31, 2011 is as follows:

76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 2.46% 2.46% Yes 2,467 2,200 - 13,400 - - 15,600 76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 4.24% 4.24% Yes 987 880 5,360 - - - 6,240 76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 4.37% 4.37% Yes 725 650 650 650 2,400 - 4,350 76.003.885-7 Australis Mar S.A. Chile Banco Corpbanca 97.023.000-9 Chile USD Biannual 2.61% 2.61% Yes 2,215 2,200 2,200 13,400 - - 17,800 76.003.885-7 Australis Mar S.A. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile USD Biannual 2.46% 2.46% Yes 0 1,683 1,650 10,050 - - 13,383 76.003.885-7 Australis Mar S.A. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile USD Biannual 2.45% 2.45% Yes 13,000 - - - - - 0 76.003.885-7 Australis Mar S.A. Chile Banco BICE 97.080.000-K Chile USD Biannual 3.69% 3.69% Yes 0 1,863 1,714 1,714 858 - 6,149 76.003.885-7 Australis Mar S.A. Chile Banco BICE 97.080.000-K Chile USD Biannual 3.55% 3.55% Yes 0 173 314 314 315 - 1,116 76.003.885-7 Australis Mar S.A. Chile Banco Santander Chile 97.036.000-K Chile USD Biannual 4.20% 4.20% Yes 0 2,628 2,571 2,571 1,287 - 9,057 76.003.885-7 Australis Mar S.A. Chile Banco Santander Chile 97.036.000-K Chile USD Biannual 2.71% 2.71% Yes 6,843 - - - - - 0 76.090.483-k Landcatch S.A. Chile Banco de Chile 97.004.000-5 Chile USD Monthly 2.64% 2.64% No 367 - - - - - 0 76.090.483-k Landcatch S.A. Chile Banco Santander Chile 97.036.000-K Chile USD Monthly 4.68% 4.68% No 326 324 324 324 324 468 1,764 Total bank loans 26,930 12,601 14,783 42,423 5,184 468 75,459 Total refinance ------Total 26,930 12,601 14,783 42,423 5,184 468 75,459

Total current Noncurrent 5 Total noncurrent Creditor as of Dec. 31, Maturity 1 to 2 Maturity 2 to 3 Maturity 3 to 4 Maturity 4 to 5 or more years as of Dec. 31, Debtor RUT Debtor Company Debtor Country Creditor Name Creditor RUT Creditor Country Currency Amortization Effective rate Nominal rate Guarantees 2011 ThUS$ years ThUS$ years Thus$ years Thus$ years Thus$ ThUS$ 2011 ThUS$ 76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 2.35% 2.35% Yes 8,332 ------76.003.885-7 Australis Mar S.A. Chile Banco de Chile 97.004.000-5 Chile USD Biannual 2.35% 2.35% Yes 1,958 1,958 1,958 13,884 - - 17,800 76.003.885-7 Australis Mar S.A. Chile Banco Corpbanca 97.023.000-9 Chile USD Biannual 2.90% 2.90% Yes 2,218 2,200 2,200 13,400 - - 17,800 76.003.885-7 Australis Mar S.A. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile USD Biannual 2.75% 2.75% Yes 1,662 1,650 1,650 10,050 - - 13,350 76.090.483-k Landcatch S.A. Chile Banco de Crédito e Inversiones 97.006.000-6 Chile Pesos Monthly 2.90% 2.90% No 434 ------76.090.483-k Landcatch S.A. Chile Banco de Chile 97.004.000-5 Chile Pesos Monthly 2.90% 2.90% No 147 ------76.090.483-k Landcatch S.A. Chile Banco de Chile 97.004.000-5 Chile USD Bimonthly 1.37% 1.37% No 366 ------76.090.483-k Landcatch S.A. Chile Banco Santander 97.036.000-K Chile USD Monthly 4.68% 4.68% No 190 326 326 326 326 787 2,091 Total bank loans 15,307 6,134 6,134 37,660 326 787 51,041 tatements

Total refinance ------S Total 15,307 6,134 6,134 37,660 326 787 51,041

*Guarantees and restrictions associated with bank loans are detailed in Note 30. As of 31.12.2012 and 31.12.2011, Bank liabilities have no associated covenants. inancial F onsolidated C

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b) Detail of financial lease obligations held by Australis Seafoods S.A. and subsidiaries, as of December 31, 2012, and December 31, 2011, NOTE 20 - PROVISIONS FOR EMPLOYEE BENEFITS, CURRENT AND NON-CURRENT is as follows: Provision for bonuses As of December 31, 2012 ThUS$ As of December 31, 2011 ThUS$ The Company contemplates a provision for bonus payments to its employees when it is contractually bound to do so or when it contemplates Finance lease minimum payments Gross Value Interest Present Value Gross Value Interest Present Value paying them, considering the compliance and performance of conditions by the employees at the end of the year. ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ ThUS$ Provision for Vacation Not later than one year 2,913 768 2,145 1,500 362 1,138 The Company recognizes an expense for employee holidays by the accrual method, according to the work performed by each individual. Later than one year but not later than five years 12,454 1,980 10,474 12,781 2,508 10,273 Provision for compensation for years of service Later than five years 6,009 265 5,744 4,593 182 4,411 Subsidiary Landcatch Chile S.A. keeps contracts with its corporate executives to whom it grants the compensation benefit for years TOTAL 21,376 3,013 18,363 18,874 3,052 15,822 of service, in the event of a voluntary resignation or termination. This liability is recognized in accordance with technical standards. Considering that the actuarial value does not significantly differ from the cost, the latter has been maintained with periodic assessments in Financial lease liabilities correspond to the following Lease Agreements: case some of the variables change. Type Institution Contract Date Amount Number of Annual Option to ThUS$ quotas interest purchase Profits or losses generated by changes in actuarial variables, if any, are recognized as net income(loss) of the period in which they arise. ThUS$ Considering the foregoing, there are: Pisciculture Cululi Banco BCI Jan, 31,08 818 60 4.60% 17 a) Current service periods costs Pisciculture Huacamalal Banco Santander - Chile Jun. 30,11 3,330 96 4.62% 48 b) Interest costs Pisciculture Las Vertientes Banco Santander - Chile Jun. 30,11 5,351 96 4.62% 77 c) Contributions made by plan participants Australis Seafoods S.A. Banco BICE Nov. 03,11 981 96 4.70% 12 d) Actuarial profits and losses Corporate office e) Expected returns on plan assets Pisciculture Ketrún Rayén Banco BBVA Nov. 21, 11 5,788 96 3.94% 75 f) Contributions made by the employer Pisciculture Curacalco Banco Santander - Chile May 11, 12 3,231 84 4.95% 47 Provisions for other benefits The Company recognizes a liability for other long-term benefits granted to its executives, mainly associated with permanence and company NOTE 19 - TRADE AND OTHER ACCOUNTS PAYABLES results. Breakdown of each at the end of the year is as follows:

The composition of trade and other accounts payable is as follows: Detail of each at the end of the year is:

Current As of Dec. 31, 2012 As of Dec. 31, 2011 As of Dec. 31, 2012 As of Dec. 31, 2011 ThUS$ ThUS$ ThUS$ ThUS$ Suppliers 62,161 41,880 Provision for bonuses - 2,,043 Employee retentions 311 243 Provision for holidays 656 561 Dividends payable - 8,243 Total provisions for employee benefits, current 656 2,604 Other 594 697 Accounts payable 1,415 91 Provision for compensation for years of service - 450 Trade creditors - 176 Provision for other benefits - 1,057 Total 64,481 51,330

Total provisions for employee benefits, non current - 1,507 tatements S

Non- Current As of Dec. 31, 2012 As of Dec. 31, 2011 Movement of these provisions from one year to another is as follows: ThUS$ ThUS$ Provision for bonuses As of Dec. 31, 2012 As of Dec. 31, 2011 Accounts payable 1,000 - ThUS$ ThUS$

Total 1,000 - Initial balance 2., 43 1,466 inancial F Increase(decrease) in existing provision - 2,043 Provision used (2,043) (1,466) TOTAL - 2,043

onsolidated C

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Provision for holidays As of Dec. 31, 2012 As of Dec. 31, 2011 a) Subscribed capital ThUS$ ThUS$ The subscribed capital of the Company consists of the following: Initial balance 560 434 As of Dec. 31, 2012 Increase(decrease) in existing provision 96 429 Series Subscribed capital Paid-in Capital Provision used - (302) No. Shares N° Shares TOTAL 656 561 Single 1,403,002,444 1,400,002,444

Provision for compensation for years of service As of Dec. 31, 2012 As of Dec. 31, 2011 Ordinary shares No. of Ordinary Total ThUS$ ThUS$ shares shares Initial balance 449 360 As of Jan. 1, 2012 1,403,002,444 1,403,002,444 1,403,002,444 Increase(decrease) in existing provision 24 90 Exchange of shares - - - Provision used (473) Capital increase - - - TOTAL - 450 Balance as of Dec. 31, 2012 1,403,002,444 1,403,002,444 1,403,002,444

Provision for other benefits As of Dec. 31, 2012 As of Dec. 31, 2011 Ordinary shares No. of Ordinary Total ThUS$ ThUS$ shares shares Initial balance 1,057 - As of Jan. 1, 2011 1,403,002,444 1,403,002,444 1,403,002,444 Increase(decrease) in existing provision (1,057) 1,057 Exchange of shares 1,220,002,444 1,220,002,444 1,220,002,444 Provision used - - Capital increase 183,000,000 183,000,000 183,000,000 TOTAL - 1,057 Balance as of Dec. 31, 2011 1,403,002,444 1,403,002,444 1,403,002,444

During 2012, the main equity transactions were the following: NOTE 21- EQUITY a) On April 27, 2012, an Australis Seafoods S.A. Extraordinary Shareholders Meeting was held, and which was agreed to correct the

The capital of the Company is one hundred and eighty four million four hundred and seventy seven thousand US Dollars (ThUS$184,477) exchange rate approved by the Extraordinary Shareholders’ Meeting held on October 20, 2011, by rectifying the exchange rate used. and is divided in 1,910,002,444 (one thousand nine hundred and ten million two thousand four hundred forty-four) shares, and is Consequently, the statutory capital was US$124,477,247, divided in 1,410,002,444 registered shares, ordinary and with no par value. composed as follows: b) On April 27, 2012, it was agreed to pay a definitive dividend of 30% of the distributable profits of the Company as of December 31, 2011, for US$8,243,085, equivalent to US$0.00588 per share subscribed and paid. The dividend was paid on May 22, 2012. ThUS$ N° Shares Capital subscribed and paid-in 123,081 1,400,002,444 c) On December 4, 2012, an Extraordinary Shareholders meeting of the Company was held, where it was agreed to approve a capital Capital subscribed* 1,097 3,000,000 increase from the amount of US$124,477,247 divided into 1,1410,002,444 registered shares, with no par value, of a single series and Capital Unsubscribed ** 60,299 507,000,000 equal value, to the amount of US$184,477,247 divided into 1,910,002,444 registered shares, with no par value, of a single series and equal value. The capital increase of US$60 million will be materialized through the issuance of 500,000,000 new registered shares, without par Total Capital 184,477 1,910,002,444 value, of a single series and equal value. The shares corresponding to the said capital increase are in the process of being registered in the * Subscribed capital: corresponds to the subscription value of 3,000,000 shares that has not been paid. Of this amount, ThUS$1,058 is part of the greater value Superintendency of Securities and Insurance, which is a prerequisite for placing them. obtained in the placement of new shares that was capitalized by the extraordinary shareholders meeting held on October 28, 2011.

The main equity transactions during 2011 were: tatements ** Unsubscribed Capital: 500,000,000 shares that correspond to the capital increase of December 4, 2012, are in the process of being registered in the S Superintendency of Securities and Insurance, a prerequisite for placing them. The remaining 7,000,000 shares were approved by the shareholder in 2011, for 1. On March 4, 2011, an Australis Seafoods S.A. Extraordinary Shareholders Meeting was held -minutes of which were granted as a public the implementation of executive stock options, which have not been issued. deed on that same date before notary public Mr. Iván Torrealba Acevedo. The meeting agreed – among other decisions- the following:

a) To increase the capital of the Company from $21,833,579,871 to $24,673,419,797, which was paid by the shareholders by capitalizing

To this date, the subscribed and paid-in capital of the Company is one hundred and twenty three million eighty-one thousand US Dollars the Company retained earnings, after absorbing the losses, from the account “Other Reserves”, so the amount of the earnings actually inancial (ThUS$123,081) divided in one thousand four hundred million two thousand four hundred forty-four shares (1,400,002,444). capitalized were $2,839,839,925. F onsolidated C

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b) To increase the number of shares in which the capital of the Company was divided, from 20,507 registered shares, with no par value, 1) The unrealized profit or loss related to biological assets registered at fair value regulated by accounting standard “IAS 41”, reinstating of a single series and equal value, to 1,220,002,444 registered shares, with no par value, of a single series and of equal value, without them to the net income at the time of their realization. For this purpose, the portion of fair value increases of assets sold or disposed of shall increasing the statutory capital. For these purposes, the exchange of shares was performed in the manner determined by the Shareholders be considered realized. and pursuant to which each shareholder of the Company received 59.492 new shares for each share already issued. 2) Unrealized profit or loss generated by the acquisition of other entities and, in general, unrealized income generated by the application of c) To request the registration of the Company and its shares in the Superintendency of Securities and Insurance with which -and once paragraphs 34, 42, 39 and 58 of Accounting Standard “IAS 3 “, as revised, referring to combined business operations. These results will be registered, the Company would be subject to the rules governing publicly traded corporations and thus subject to the supervision of the reinstated to net profit s upon their realization. Superintendency, obliged to comply with the provisions of Article 2 of the Corporations Law, Articles 5 and 7 of Law 18,045 on Market For this purpose, the portion of such the fair value increases of assets sold or disposed of shall be considered realized. Securities (hereinafter, the “Securities Act”) and Article 2 of the Regulations of the Corporations Law Companies. the latter, in order that the Company shares may be publicly offered and traded in the stock exchanges of emerging company’s markets, in accordance with Article 8 3) The effect of deferred taxes associated with the items indicated in 1) and 2) has the same treatment as the item that generates them. paragraph two of the Securities Law and General Rule No. 118 issued by the Superintendency as amended. - Provision for Dividends d) Increase the capital of the Company from $24,673,419,797 -including the revaluation of capital reported in the Annual General As of December 31, 2012, the Company has no provisions for dividends since there is no distributable net income. Shareholders Meeting held on March 4, 2011 -which is divided into 1,220,002,444 registered shares, without par value, of a single series As of December 31, 2011, the Company had a provision of dividends of 30% of distributable net income determined as of that date. and of equal value- to the amount of $28,515,993,870.- divided into 1,410,002,444 registered shares, with no par value, of a single series and of equal value, which implies a capital increase of $3,842,574,074. This was performed through the issuance of 190,000,000 new b) Distribution of Shareholders registered shares, without par value, of a single series and of equal value. The Meeting established a minimum placement value and agreed The principal shareholders of Australis Seafoods S.A. are:

to allocate $141,568,519 of the capital increase to a compensation plan for employees of the Company and subsidiaries, according to the Name or corporate name No. of shares % capital share terms of Article 24 of the Corporations Law. FONDO DE INVERSIÓN PRIVADO AUSTRALIS 1,101,077,936 78.48% 2. - On March 14, 2011, Director Mr. Rodrigo Arriagada Astrosa subscribed 2,000,000 shares of the Company. The price per share is equal ASESORÍAS E INV. BENJAMIN S.A. 106,924,508 7.62% to the price at which they are offered in the IPO, which is $185. The total amount of the transaction was $370,000,000 which payment FONDO DE INVERSIÓN LARRAÍN VIAL BEAGLE 54,950,856 3.92% term is still pending. LARRAÍN VIAL S.A. CORREDORA DE BOLSA 43,331,873 3.09% 3. - On March 14, 2011, Director Mr. Federico Rodriguez Marty subscribed 1,000,000 shares of the Company. The price per share was AFP HÁBITAT S.A. PARA FDO. PENSIÓN C 16,043,158 1.14% equal to the price at which they are offered in the IPO that is $185. The total amount of the transaction was $185,000,000 and its payment COMPASS SMALL CAP CHILE FONDO DE INVERSIÓN 11,491,470 0.82% terms are still pending. MBI CORREDORES DE BOLSA S.A. 10473,656 0.75%

4. - On June 8, 2011, the Board of Directors declared successful the Initial Public Offering of 180,000,000 shares, representing 12.77% AFP HÁBITAT S.A. FONDO TIPO B 10,414,253 0.74% of the capital shares of the Company . The Offering took place on December 9, 2011, was performed by Larrain Vial S.A. Corredora de AFP HABITAT S.A. FONDO TIPO A 8,969,575 0.64% Bolsa acting as placement agent and was executed in Santiago Stock Exchange by using the “Subasta de un Libro de Órdenes” (Order Book BOLSA DE COMERCIO DE SANTIAGO BOLSA DE VALORES 6,452,358 0.46% Auction Method). The placement price of the shares offered by the Company was fixed at $185 per share, so the total amount of the shares NEGOCIOS Y VALORES S.A. C DE B 6,288,871 0.45% placed totaled $33.3 billion. BICE INVERSIONES CORREDORES DE BOLSA S.A. 4,549,006 0.32% 5. - An Extraordinary Shareholders Meeting was held on October 20, 2011, with an attendance of shareholders representing 97.274% of the total shares with voting rights, agreed, among other issues, the following: NOTE 22 - GAINS (LOSSES) ACCUMULATED

a) The modification of the currency from Chilean pesos to US Dollars, according to which the accounting records of the Company, will be The composition of the accumulated income item is as follows: kept and the capital shall be expressed: As of Dec. 31, 2012 As of Dec. 31, 2011 a. 1. The capitalization of the highest value obtained in the in the placement of shares dated June 9, 2011, net of issuance and placement ThUS$ ThUS$ tatements expenses, in compliance with the requirements of the paragraph 2 of Article 26 of the Corporations Law. S Initial balance 24,163 11,929 - Dividend Policy Comprehensive income (losses) (66,096) 27,429 For purposes of determining the distributable net income of the Company considered for calculating dividends, the following income of Other Equity variations - (6,952) the year shall be excluded: Interim Dividends - (8,243) inancial

Total (41,933) 24,163 F onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S

As required by Circular No. 1.945 dated September 29, 2009, issued by the Superintendency of Securities and Insurance, adjustments The determination of net income for the year ended December 31, 2012, is a follows: made due to the first application of IFRS are recorded as credits with a credit to Accumulated Profit (Loss) pending realization. As of Dec. 31, 2012 ThUS$ Items Amount realized In 2012 Unrealized balance as of Amount realized In 2011 Unrealized balance as of ThUS$ Dec. 31, 2012 ThUS$ Dec. 31, 2011 Earnings attributable to controlling company’s ThUS$ ThUS$ equity holders (66,096) Functional currency - (1,539) - (1,539) Variation of Fair value of biological assets 12,472 Property, plant and equipment - (563) - (563) Deferred taxes related to Fair value of biological assets (2,494) Deferred Taxes - 233 - 233 Distributable net earnings (56,118) Stock - -

Intangibles 214 214 Application of dividend policy (30%) - Goodwill - -

Others - 185 - 185 As of December 31, 2012, the Company does not show interim dividends since there is no distributable net income. TOTAL - (1,470) - (1,470) NOTE 24- INCOME FROM ORDINARY ACTIVITIES

NOTE 23- EARNINGS PER SHARE AND NET DISTRIBUTABLE INCOME The composition of the Group’s ordinary revenue is as follows: 23.1. Earnings per share Accumulated as of Dec. 31, 2012 Accumulated as of Dec. 31, 2011 ThUS$ Breakdown of earnings per share is as follows: ThUS$ Freshwater sales 1,073 9,400 As of Dec. 31, 2012 As of Dec. 31, 2011 US$/n° shares US$/n° shares Seawater sales 120,676 154,264 Earnings per share (0.047) 0.020 Total 121,749 163,664

The calculation of earnings (losses) per basic share has been made by dividing the amounts of profit attributable to shareholders by the The Group’s ordinary revenue consists primarily of the sale of products derived from the harvest of biological assets. number of shares of the same and single series. The Company has not issued convertible debt or other equity-linked securities. NOTE 25- OTHER INCOME /OTHER LOSSES, BY FUNCTION Consequently, there are no potential diluting effects on the earnings per share of the Company. Other income by functions as follows: 23.2. Distributable net income The dividend policy for 2012 and 2011 consists of distributing a dividend of at least 30% of the net income of the year ending December Other income, by function Accumulated as of Dec. 31, 2012 Accumulated as of Dec. 31, 201 ThUS$ ThUS$ 31, 2012, by distributing of a definitive dividend agreed by the Shareholders in an Ordinary Meeting, and payable on the date established Leases - 92 by that Meeting. Transfer of rights 158 - According to provisions of Circular No. 1945 dated December 29, 2009, issued by the Superintendency, it was agreed as general policy, Reimbursement under Law 18.708 108 51 that for purposes of payment of the minimum mandatory dividend of 30% set forth in Article 79 of Law 18,046, net income shall be Reversal of Employee Provisions* 1,057 - determined based on the income net of relevant variations of fair value of unrealized assets and liabilities, both which must be reinstated Other 771 307 for the calculation of net income of the period in which such variations are realized. Total 2,094 450 Additional dividends will be determined based on the above-mentioned criteria, as agreed by the Shareholders’ Meeting. * Reverse of the accounting provision for employee benefits related to the compliance of certain performance goals, which was recalculated based on tatements S Accordingly, it was agreed that, for purposes of determining the distributable net income of the Company, that is, the net income to be the results of the Company as of December 31, 2012. considered for the calculation of the minimum mandatory dividend for 2012 and 2011, the following items will be excluded from the income (loss) for the period for:

i) Unrealized profit or loss connected to the record of biological assets at fair value covered by accounting standard “IAS 41”, reinstating inancial them to net income at the time of their realization. For this purpose, the portion of such fair value increases of assets sold or disposed of F shall be considered realized.

ii) The effects of deferred taxes associated with the item indicated in i) shall have the same treatment as the item that generates them. onsolidated C

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Other losses, by function Accumulated as of Dec. 31, 2012 Accumulated as of Dec. 31, 2011 NOTE 28- FINANCIAL COSTS (NET) ThUS$ ThUS$ Financial costs have following breakdown in the financial statements: Reduction of Productive plan* (9,095) - Accumulated as of Dec. 31, 2012 Accumulated as of Dec. 31, 2011 Fixed assets reduction and write-off (550) (27) ThUS$ ThUS$ Provision for impaired assets (749) - Bank loan interest (3,350) (1,785) Resting break centers (1,298) (1,305) Loan commission - (65) Other (224) (368) Notarial expenses (39) (18) Total (11,916) (1,700) Bank expenses (39) (33)

* Effect generated by the reduction of the original 2012 smolt farming plan, from 17.5 million units to 12.4 million units, in consideration to the sustained fall Total (3,428) (1,901) of international prices of salmon, caused -at large- by the strong increase of Chilean production and the pressure it has exerted in the markets. NOTE 29 – FOREIGN CURRENCY AND EXCHANGE RATE DIFFERENCES NOTE 26- COSTS OF DISTRIBUTION a) Recognized Exchange rates differences Distribution costs are as follows: Exchange rate differences generated as of December 31, 2012 and 2011, for the balance of assets and liabilities in foreign currencies, other

Accumulated as of Dec. 31, 2012 Accumulated as of Dec. 31, 2011 than the functional currency, were credited(debited) from income(loss) for the period as follows: ThUS$ ThUS$ Accumulated as of Dec. 31, 2012 Accumulated as of Dec. 31, 2011 Land transportation (998) (582) ThUS$ ThUS$ Third-party cold storage (1,997) (262) Assets in foreign currency 6,029 (5,910) Sale expenses (110) (215) Liabilities in foreign currency (1,716) 1,230 General shipping expenses (475) (367) Total exchange rate difference 4,313 (4,680) Employee Remuneration (477) (451) Commissions (196) (75) b) Assets and liabilities in foreign currency: Other sale expenses (636) (73) Current assets Currency As of Dec. 31, 2012 As of Dec. 31, 2011 Total (4,889) (2,025) ThUS$ ThUS$ Cash and cash equivalents Pesos Not- indexed 3,143 49,371 Cash and cash equivalents US Dollars 12,384 2,109 NOTE 27- ADMINISTRATION EXPENSES Subtotal Cash and cash equivalents 15,527 51,480 Below are the main Administration expenses of the Company as of closing of the financial statements: Other current non-financial assets Pesos Not- indexed 156 174 Accumulated as of Dec. 31, 2012 Accumulated as of Dec. 31, 2011 ThUS$ ThUS$ Other current non-financial assets US Dollars 395 252 Leases (306) (238) Subtotal Other current non-financial assets 551 426 Employee expenses (4,128) (4,971) Trade and other current accounts receivable Pesos Not- indexed 2,252 2,586 Depreciation and amortization (170) (47) Trade and other current accounts receivable US Dollars 12,158 14,278 Third-party services (1,875) (1,896) Subtotal Trade and other current accounts receivable 14,410 16.864

Other (1,266) (1,165) Current accounts receivable from related entities US Dollars 3,808 5,701 tatements S Total (7,745) (8,317) Current accounts receivable from related entities Pesos indexed 18 50 Subtotal Current accounts receivable from related entities 3,826 5,751 Employee Expenses Inventories US Dollars 14,849 11,506 Employee expenses are as follows: Subtotal Inventories 14,849 11,506 inancial

Employee expenses Accumulated as of Dec. 31, 2012 Accumulated as of Dec. 31, 2011 Biological assets, current US Dollars 66,217 78,797 F ThUS$ ThUS$ Subtotal Biological assets, current 66,217 78,797 Remuneration (3,659) (2,814) Current tax assets Pesos Not- indexed 2 196 Benefits (157) (2,085) Current tax assets Pesos indexed 13,491 7,749 Other (312) (72) Subtotal Current tax assets 13,493 7,945 Total (4,128) (4,971)

onsolidated C

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Non-current assets Currency As of Dec. 31, 2012 As of Dec. 31, 2011 NOTE 30 – CONTINGENCIES, COMMITMENTS AND GUARANTEES. ThUS$ ThUS$ Other Non-current financial assets Pesos Not- indexed 7,857 7,379 a) Pledged shares Other Non-current financial assets US Dollars 156 156 1. According to the financing contracts of subsidiary Australis Mar S.A., Australis Seafoods S.A.’s controlling shareholders assumed the Subtotal Other Non-current financial assets 8,013 7,535 obligation to pledge 50.1% of its shares in favor of the banks financing this subsidiary: Banco Chile, CorpBanca and Banco de Crédito e Investment recorded using the participation method US Dollars 8,120 7,612 Inversiones. Subtotal Investment recorded using the participation method 8,120 7,612 2. By public deed dated December 11, 2012, the controlling shareholder of the Company, Fondo de Inversión Privado Australis, pledged 171,771,450 shares issued by Australis Seafoods S.A. to secure the credit granted to subsidiary Australis Mar S.A. by Banco de Crédito e Intangible assets other than Goodwill US Dollars 17,505 14,456 Inversiones for thirteen million US Dollars. Subtotal Intangible assets other than Goodwill 17,505 14,456 b) Direct guarantees Property, plant and equipment US Dollars 75,340 60,373 On the date of issuance of these financial statements, the Company has no direct guarantees of any kind. Subtotal Property, plant and equipment 75,340 60,373 Biological assets, non current US Dollars 24,577 28,860 c) Indirect Guarantees Subtotal Biological assets, non current 24,577 28,860 Australis Seafoods S.A. granted the following guarantees in benefit of its subsidiaries: Deferred tax assets US Dollars 3,952 2,476 Debtor Assets Subtotal Deferred tax assets 3,952 2,476 Accounting value Creditor guarantee Name Relationship Type of guarantee Type ThUS$ Non-current assets Currency As of Dec. 31, 2012 As of Dec. 31, 2011 Corpbanca Australis Mar S.A. Subsidiary Bill of exchange Not applicable - ThUS$ ThUS$ Banco Chile Australis Mar S.A. Subsidiary Bill of exchange Not applicable - Other financial liabilities, non-current Pesos Not- indexed - 581 Banco Crédito e Inversiones Australis Mar S.A. Subsidiary Bill of exchange Not applicable - Other financial liabilities, non-current Dollars 29,039 15,682 BBVA Chile Landcatch Chile S.A. Subsidiary Bond Not applicable - Other financial liabilities, non-current Pesos Not- indexed 36 182 Banco Santander-Chile Australis Mar S.A. Subsidiary Bill of exchange Not applicable - Subtotal Other financial liabilities, non-current 29,075 16,445 Banco Santander-Chile Landcatch Chile S.A. Subsidiary Bond Not applicable - Trade and other accounts payable, current Pesos Not- indexed 33,215 17,713 Banco Bice Australis Mar S.A. Subsidiary Bill of exchange Not applicable - Trade and other accounts payable, current US Dollars 31,266 33,617

Subtotal Trade and other accounts payable, current 64,481 51,330 d) Third party Guarantees Current accounts payable to related entities, current Pesos Not- indexed 363 368 In accordance with the provisions of bank financing contracts entered by Australis Mar S.A. (Subsidiary), this company’s debts with Banco Current accounts payable to related entities, current US Dollars 3,525 de Chile, Banco de Crédito e Inversiones and Corpbanca were endorsed by Mr. Isidoro Ernesto Quiroga Moreno, Asesorías e Inversiones Subtotal Current accounts payable to related entities, current 363 3,893 Benjamín S.A., Australis Seafoods S.A. and Landcatch Chile S.A. Australis Mar S.A. debts with Banco Santander-Chile and Banco Bice Provisions for employee benefits, current Pesos Not- indexed 656 2,604 were guaranteed (Bill of exchange) and secured (Bond) by Australis Seafoods S.A. In addition, the credit granted by Banco de Crédito e Provisions for employee benefits, current US Dollars Inversiones to subsidiary Australis Mar S.A. for thirteen million US Dollars was endorsed by Mr. Isidoro Ernesto Quiroga Moreno. The Subtotal Provisions for employee benefits, current. 656 2,604 granting and maintenance of these securities and bonds, does not accrue any charges to the Company or its subsidiaries. e) Guarantees granted by subsidiaries Non-current liabilities Currency As of Dec. 31, 2012 As of Dec. 31, 2011 Subsidiary Comercializadora Australis SpA granted a personal guarantee to Sun Trust Bank, in order to secure the fulfillment of 50% of

ThUS$ ThUS$ tatements the obligations undertaken by True Nature Seafood, LLC, a company which social rights belong True Salmon Pacific Holding, LLC that -in Other financial liabilities, non -current US Dollars 91,677 65,680 S turn- is 50% owned by Comercializadora Australis SpA Other financial liabilities, non -current Pesos Not- indexed - 45 Subtotal Other financial liabilities, non –current 91,677 65,725 Australis Mar S.A.’s debts with Banco Bice are secured by mortgages and pledges granted by the food-processing subsidiary Procesadora de Alimentos Australis SpA that pledged and mortgaged Puerto Chacabuco plant (valued at ThUS$2,427). Deferred taxes US Dollars - 7,353 inancial

Subtotal Deferred taxes - 7,353 Australis Mar S.A. granted a naval mortgage on pontoons of its property to guarantee its debts held with Banco Santander-Chile and Banco F Provisions for employee benefits, non-current Pesos Not- indexed - 450 Bice (15 pontoons valued at ThUS$10,358, and 4 pontoons valued at ThUS$4,679, respectively). Provisions for employee benefits, non-current US Dollars - 1,057 Subtotal Provisions for employee benefits, non-current - 1,507 Other accounts payable, Non-current US Dollars 1,000 -

Subtotal other accounts payable, Non-current 1,000 - onsolidated C

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Subsidiary Procesadora de Alimentos ASF SpA pledged and mortgaged assets of its property to secure payment of the balance of the The breakdown of expenditures in environmental protection projects that the Group has made during 2012 is as follows: purchase price thereof, to non-related company Asesorías e Inversiones La Cumbre Limitada. The current creditor of this debt is the non- related company Asinver S.A., since the credit was assigned by the original creditor. As of Dec. 31, 2012 As of Dec. 31, 2011 Amount Date of Date of e) Restrictions committed for reimbursement conclusion of Company making the Expenditure Investment future periods (Certain or the project Expense Investment According with Australis Mar S.A.’s (subsidiary) bank financing contracts, this company is subject to the following restrictions that are expenditure Project Concept ThUS$ ThUS$ Description ThUS$ estimated) (Estimated) ThUS$ ThUS$ applicable until 2015, unless the company prepaid the debt balances. Australis Mar S.A. Implementation Implementation - 48 Oxygen 48 Dec. 31, 2013 Dec. 31, - 40 of oxygen of oxygen equipment 2013 monitoring monitoring a) Do not encumber or bond or become a co-debtor or directly or indirectly compromise its equity for third-party obligations that, systems systems individually or collectively, have an amount equal or superior to five hundred thousand US Dollars. Australis Mar S.A. Elaboration of Elaboration of 36 - Third party 35 Dec. 31, 2013 Dec. 31, 30 - preliminary preliminary services 2013 b) Australis Mar S.A. may not grant pledges or mortgages on its personal or real property, except those authorized in the financing contracts. environmental environmental impact studies of impact studies of c) Australis Mar S.A. may not transfer, sell or assign a any title assets that are part of the debtor’s fixed asset, unless such transfers do not concessions concessions imply a significant decrease of its equity. Australis Mar S.A. Implementation Implementation 36 - Third party 35 Dec. 31, 2013 Dec. 31, 30 - d) Australis Mar S.A. may not distribute profits or pay dividends above thirty percent of the profits of the corresponding financial year, of bio-security of bio-security services 2013 measures and measures and for the entire term of the credit, unless that, in excess, they are capitalized in the debtor or reinvested in Australis Seafoods S.A. or in any vectors vectors company controlled by it. Australis Mar S.A. Environmental Environmental 48 - Third party 48 Dec. 31, 2013 Dec. 31, 40 - analysis analysis of sites services 2013 e) The ThUS$10,686 debt that Australis Mar S.A. has with Australis Seafoods S.A. (parent company) must be subordinated in favor of the through land testing creditor banks. Landcatch S.A. UV system for UV system for - 257 Riles - - Concluded 120 401 disinfection disinfection Monitoring / of incubation of incubation UV System effluents effluents / Riles NOTE 31– THE ENVIRONMENT Monitoring As part of their business strategy Australis Seafoods S.A. and subsidiaries defined that the care and respect for the environment is a priority, Environmental disbursements of subsidiary Australis Mar S.A. are related to the setting up of new piscicultures and -even if they have an estimated date of for which a series of actions have been adopted to make its operations more efficient and considerably reduce environmental impacts termination-, these projects will continue in the future as long as new piscicultures are established. through the following types of expenditures: NOTE 32 – SUBSEQUENT EVENTS a) Disbursements or expenses related to the improvement and/or investment in production processes that result in a reduction of the impact a) The consolidated financial statements of the Company for the financial year ended December 31, 2012, were approved by the Board of of their activity on the environment and/or improve environmental conditions such as: effluent monitoring of piscicultures, naval artifacts Directors at the meeting held on March 4, 2013. and processing plants, implementation of fish silage mortality systems in seawater breeding centers and piscicultures, environmental reports and initial characterizations breeding centers, etc. b) On January 2, 2013, Mr. Andrés Saint Jean Hernández resigned to his position as CEO of Australis Seafoods S.A. and was substituted by Mr. Rodrigo Arriagada Astrosa who -until then- was the Chairman of the Company. In turn, Mr. Rodrigo Arriagada resigned his position as b) Disbursements or expenses related to the verification and control of regulations and laws related to industrial processes and facilities Director of the Company to accept his appointment as CEO. Additionally, the Board appointed Mr. Federico Rodríguez Marty as Chairman, such as: the filing of environmental impact assessments for the evaluation of silage mortality, management and final disposal of hazardous Mr. Martín Salvador Guiloff as Vice President, and Mr. Luis Felipe Correa González as Secretary of the Company. and non-hazardous waste, monitoring phytoplankton; monitoring sediment and water columns in piscicultures, monitoring of sludge from piscicultures, environmental consulting, contracting sampling services and laboratory analysis, etc. c) Except as set forth above, after December 31, 2011 and until the date of issuance of these financial statements, the Company has no knowledge of any other subsequent financial or other events that may significantly affect the these statements or their interpretation. In the future, Australis Seafoods and subsidiaries reiterate their commitment to care for the environment by making new investments, constantly training their employees and signing new agreements that will allow to progress towards sustainable development to achieve NOTA 33 - OTHER INFORMATION harmony between its operations and the environment.

Australis Seafoods S.A. number of employees and subsidiaries, by category is as follows: tatements S As of Dec. 31, 2012 As of Dec. 31, 2011 Indefinite term contracts 340 312 Fixed term contracts 19 35

Total contracts 359 347 inancial F onsolidated C

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NOTE 34 - PRO-FORMA CASH FLOWS STATEMENTS As required by Circular No. 2058 issued by the Superintendency of Securities and Insurance, the following is the Cash Flow Statement as Affiliates Summarized Financial Statements of December 31, 2012, according to the Pro-Forma direct method. As from the financial statements of March 31, 2013, the Company shall submit its Cash Flow Statements using this method. BALANCE SHEET Australis Mar S.A. Landcatch Chile S.A. Piscicultura Comercializadora Rio Maullín SPA Australis SP Statement of cash flows 01-01-2012 2012 2011 2012 2011 2012 2011 2012 2011 31-12-2012 ThUS$ Assets, current 123,278 107,954 15,097 27,307 - - - - Cash flows from (used in) operating activities Assets, non current 94,289 80,263 32,742 30,631 139 149 8,120 7,612 Classes of cash receipts Total assets 217,567 188,217 47,839 57,938 139 149 8,120 7,612 Receipts from sales of goods and rendering of services 124,667 Other cash receipts from operating activities 33,048 Liabilities, current 131,563 57,730 12,201 18,795 144 122 7,533 3,525 Classes of cash payments Liabilities, non current 85,387 66,470 25,669 25,330 - - - 4,005 Payments to suppliers for goods and services (187,648) Equity 617 64,017 9,969 13,813 (5) 27 587 82 Payments to and on behalf of employees (11,544) Total Liabilities and Equity 217,567 188,217 47,839 57,938 139 149 8,120 7,612 Other cash payments from operating activities (3,670) Cash flows from (used in) operations (45,147) INCOME STATEMENT Australis Mar S.A. Landcatch Chile S.A. Piscicultura Comercializadora Rio Maullín SPA Australis SP Dividends paid (8,243) 2012 2011 2012 2011 2012 2011 2012 2011 Income taxes paid (refund) 3,039 Profit (Gross) (58,558) 45,720 579 5,714 0 0 0 0 Cash flows from (used in) operating activities (50,351) Other revenues (loss) (18,388) (7,989) (6,870) (2,703) (32) 20 505 82 Cash flows from (used in) investing activities Profit (loss) before taxes (76,946) 37,731 (6,291) 3,011 (32) 20 505 82 Cash flows used in obtaining control of subsidiaries or other businesses (3,525) Income tax 13,625 (7,667) 2,447 (419) Proceeds from sales of property, plant and equipment, classified as investing activities (24,677) PROFIT(LOSS) (63,321) 30,064 (3,844) 2,592 (32) 20 505 82 Purchase of intangible assets (1,187) Interest received 1,430 CASH FLOW STATEMENT ThUS$ Australis Mar S.A. Landcatch Chile S.A. Cash flows from (used in) investing activities (27,959) 2012 2011 2012 2011 Cash flows from (used in) financing activities Net Cash Flows from (used in) operating activities (39,528) 8,919 1,228 (11) Proceeds from long-term loans 21,100 Net Cash Flows from (used in) investing activities (20,589) (16,686) (4,939) (8,962) Proceeds from short-term loans 19,800 Net Cash Flows from (used in) financing activities 72,439 (646) 3,224 9,158 Loans paid (5,335) Net increase (decrease) on cash and cash equivalents 12,322 (8,413) (487) 185 Payments of finance lease liabilities (1,518) Initial Cash and cash equivalents 3,030 11,443 509 324 Interest paid, classified as investing activities (1,870) Balance cash and cash equivalent 15,352 3,030 22 509 Proceeds from sales of property, plant and equipment 10,180 CASH FLOW STATEMENT ThUS$ Piscicultura Comercializadora Cash flows from (used in) financing activities 42,357 Rio Maullín SPA Australis SPA tatements Increase (decrease) in cash and cash equivalents before effect of exchange rate changes (35,953) 2012 2011 2012 2011 S Effect of exchange rate changes on cash and cash equivalents Net Cash Flows from (used in) operating activities (22) - (3) (5) Increase (decrease) net in cash and cash equivalents (35,953) Net Cash Flows from (used in) investing activities - 3 (4,000) Initial Cash and cash equivalents 51,480 Net Cash Flows from (used in) financing activities 22 - - 4,005 Balance Cash and cash equivalents 15,527 Net increase (decrease) on cash and cash equivalents - - - - inancial F Initial Cash and cash equivalents - - - - Balance cash and cash equivalent - - - - onsolidated C

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STATEMENT OF CHANGES IN EQUITY Capital Accumulated Other Equity attribu- Non- Equity AUSTRALIS MAR S.A. THUS$ earnings reserves table to owners controlling of parent interests Initial balance as of 01/01/2012 5,066 58,854 - 63,920 97 64.017 Profit - (63,321) - (63,321) - (63.321) Other movements - - - - (79) (79) Total changes in equity 5,066 (4,467) - 599 18 617 Total balance as of 31/12/2012 5,066 (4,467) - 599 18 617

STATEMENT OF CHANGES IN EQUITY Capital Accumulated Other Equity attribu- Non- Equity LANDCATCH CHILE S.A. THUS$ earnings reserves table to owners controlling of parent interests Initial balance as of 01/01/2012 10,825 4,166 (1,178) 13,813 - 13,813 Profit - (3,844) - (3,844) - (3,844) Other movements ------Total changes in equity 10,825 322 (1,178) 9,969 - 9,969 Total balance as of 31/12/2012 10,825 322 (1,178) 9,969 - 9,969

STATEMENT OF CHANGES IN EQUITY Capital Accumulated Other Equity attribu- Non- Equity PISCICULTURA RIO MAULLIN SPA THUS$ earnings reserves table to owners controlling of parent interests Initial balance as of 01/01/2012 - 20 7 27 - 27 Profit - (32) - (32) - (32) Other movements ------Total changes in equity - (12) 7 (5) - (5) Total balance as of 31/12/2012 - (12) 7 (5) - (5)

STATEMENT OF CHANGES IN EQUITY Capital Accumulated Other Equity attribu- Non- Equity COMERCIALIZADORA AUSTRALIS SPA THUS$ earnings reserves table to owners controlling of parent interests Initial balance as of 01/01/2012 - 82 - 82 - 82 Profit - 505 - 505 - 505

Other movements ------tatements

Total changes in equity - 587 - 587 - 587 S Total balance as of 31/12/2012 - 587 - 587 - 587 inancial F

The accounting policies applied to each subsidiary are the same as those described in Australis Seafoods S.A.’s the consolidated financial statements. The Subsidiaries’ complete financial statements are available of the public in Australis Seafoods S.A.’s offices and in the Superintendency of Securities and Insurance’s website. onsolidated C

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ANNUAL REPORT 2012 A U S T R A L I S S E A F O O D S tatements S

DESIGN 100% Diseño inancial PHOTOGRAPHY Morten Andersen F

PORTRAITS Cristina Alemparte

PRINTING Fyrma Gráfica onsolidated C

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